Research Desk Line-up: CoStar Group Post Earnings Coverage
LONDON, UK / ACCESSWIRE / November 1, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Agree Realty Corp. (NYSE: ADC), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=ADC, following the Company's posting of its third quarter fiscal 2017 operating results on October 23, 2017. The Bloomfield Hills, Michigan-based real estate investment trust (REIT) beat revenue estimates while its adjusted funds from operations (AFFO) came in in-line with market expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
Get more of our free earnings reports coverage from other constituents of the Property Management industry. Pro-TD has currently selected CoStar Group, Inc. (NASDAQ: CSGP) for due-diligence and potential coverage as the Company announced on October 25, 2017, its financial results for Q3 which ended on September 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on CoStar Group when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on ADC; also brushing on CSGP. With the links below you can directly download the report of your stock of interest free of charge at:
For the quarter ended September 30, 2017, Agree Realty reported revenue of $30.39 million compared to revenue of $24.16 million in Q3 2016. The Company's revenue numbers topped analysts' estimates of $29.1 million.
During Q3 2017, Agree Realty's total rental revenue, which includes minimum rents and percentage rents, advanced 22.6% to $27.3 million compared to total rental revenue of $22.3 million for Q3 2016.
Net income attributable to Agree Realty decreased to $12.2 million, or $0.42 per share, for Q3 2017 compared to $14.3 million, or $0.61 per share, for Q3 2016, primarily attributable to a decrease in gain on sale of assets relative to the prior period.
Agree Realty's Funds from Operations (FFO) jumped 23.2% to $20.0 million for Q3 2017 compared to funds from operations (FFO) of $16.2 million for Q3 2016. The Company's FFO per share for the reported quarter grew 1.6% to $0.69 compared to FFO per share of $0.68 in the year-ago comparable period.
For Q3 2017, Agree Realty's AFFO totaled $19.9 million, or $0.69 per share, compared to AFFO of $15.8 million, or $0.66 per share, for the prior year's corresponding quarter. The Company's AFFO matched Wall Street's estimates of $0.69 per share.
As of September 30, 2017, Agree Realty's portfolio consisted of 425 properties located in 43 states and totaled 8.3 million square feet of gross leasable space. Properties ground leased to tenants increased to 8.2% of annualized base rents.
At the end of the reported quarter, the Company's portfolio was approximately 99.7% leased, had a weighted-average remaining lease term of approximately 10.5 years, and generated approximately 45.2% of annualized base rents from investment grade retail tenants.
Agree Realty's total acquisition volume for Q3 2017 was approximately $54.9 million and included 14 assets net leased to notable retailers operating in the off-price retail, convenience stores, auto parts, tire and auto service, health and fitness, and home improvement sectors. The properties acquired are located in 12 states and leased to tenants operating in nine retail sectors. The properties were acquired at a weighted-average capitalization rate of 7.4% and had a weighted-average remaining lease term of approximately 11.2 years.
During Q3 2017, Agree Realty sold four properties for gross proceeds of approximately $7.8 million. For the nine months ended September 30, 2017, the Company has disposed of seven properties for total gross proceeds of $30.4 million.
Development and Partner Capital Solutions
During Q3 2017, Agree Realty commenced two new development and PCS projects, with anticipated costs totaling approximately $11.5 million. Total project costs were approximately $3.9 million.
For Q3 2017, Agree Realty continued its construction on three projects with total anticipated costs of approximately $24.4 million. The projects include the Company's first PCS project with Art Van Furniture in Canton, Michigan as well as the Company's first two development projects with Mister Car Wash located in Urbandale, Iowa and Bernalillo, New Mexico.
During Q3 2017, Agree Realty executed new leases, extensions or options on approximately 48,000 square feet of gross leasable area throughout the existing portfolio. In the first nine months of 2017, the Company executed new leases, extensions or options on approximately 480,000 square feet of gross lease area throughout the existing portfolio. The Company has no remaining lease maturities in 2017.
During Q3 2017, Agree Realty issued 589,093 shares of common stock under its at-the-market equity program ("ATM program") at an average price of $49.58, realizing gross proceeds of approximately $29.2 million.
The Company also completed a private placement of $100 million principal amount of senior unsecured notes in the reported quarter. The notes have a 12-year term, maturing on September 20, 2029, priced at fixed interest rate of 4.19%.
As of September 30, 2017, Agree Realty's net debt-to-recurring EBITDA was 4.7 times and its fixed charge coverage ratio was 4.1 times. The Company's total debt to total enterprise value was 25.2%.
Agree Realty raised the guidance for acquisition volume in 2017 to a range of $300 million to $325 million of high-quality retail net lease properties. The Company's disposition guidance for 2017 remains between $30 million and $50 million.
On Tuesday, October 31, 2017, the stock closed the trading session at $47.29, slightly up 0.06% from its previous closing price of $47.26. A total volume of 136.71 thousand shares have exchanged hands. Furthermore, since the start of the year, shares of the Company have gained 2.69%. The stock is trading at a PE ratio of 23.10 and has a dividend yield of 4.27%. At Tuesday's closing price, the stock's net capitalization stands at $1.38 billion.
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