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Agree Realty Acquires Assets

Zacks Equity Research

Agree Realty Corporation (ADC), a real estate investment trust (:REIT), has recently acquired three premium assets - a Family Dollar store in Spartanburg, South Carolina; a USAA Financial Services Center in Jacksonville, North Carolina; and an AutoZone store in Springfield, Illinois. The properties were acquired at a combined purchase price of approximately $5.3 million.

Recently, Agree Realty also closed on the sale of two shopping centers — the Plymouth Commons and the Shawano Plaza shopping centers, both located in the tertiary markets in central Wisconsin.

Agree Realty has continued to reposition its portfolio by divesting assets that have limited opportunities and redeployment of capital. Instead, the company focus is on acquisition and development of properties which have the potential to generate higher returns.

Through this strategic initiative, Agree Realty expects to enhance its portfolio quality, which in turn could be accretive to earnings going forward.  All three current acquisitions feature single-tenant industry leading retailers, which further enhance the quality of the company’s portfolio.

Agree Realty is primarily engaged in the ownership, development, acquisition, and management of retail properties, which are primarily leased to national and regional retail companies in the United States. Currently, the company owns a portfolio of 96 properties, located in 25 states containing approximately 3.1 million square feet of gross leasable space.

Agree Realty currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We also have a long-term Neutral recommendation on the stock. One of its competitors, Kimco Realty Corporation (KIM) holds a Zacks #2 Rank, which translates into a short term Buy rating.

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