BLOOMFIELD HILLS, Mich.,
Feb. 23, 2015 /PRNewswire/
-- Agree Realty Corporation (NYSE: ADC) today announced
results for the quarter and full year ended December 31, 2014. All per share amounts
included herein are on a diluted per common share basis unless
otherwise stated.
Fourth Quarter Financial and Operating Highlights:
- Increased rental revenue 21.4% to $13.5
million
- Increased Funds from Operations (FFO) 13.8% to $9.0 million
- Increased Adjusted Funds from Operations (AFFO) 12.7% to
$9.1 million
- Acquired 48 retail net lease properties for approximately
$71.9 million
- Completed the dispositions of two Kmart anchored shopping
centers
- Raised $76.8 million in gross
proceeds from the issuance of 2,587,500 common shares
- Increased quarterly dividend by 4.7% to $0.45 per share
Full Year Financial and Operating Highlights:
- Increased rental revenue 21.1% to $49.6
million
- Increased FFO 17.4% to $33.3
million
- Increased AFFO 17.2% to $33.9
million
- Acquired 77 retail net lease properties for approximately
$147.5 million
- Completed three developments and two Joint Venture Capital
Solutions (JVCS) projects representing an aggregate investment of
approximately $17.6 million
- Raised $76.8 million in net
proceeds from the issuance of 2,287,500 common shares and entered
into a new $250.0 million senior
unsecured credit facility
- Paid $1.74 per share annual
dividend, an increase of 6.1% from $1.64 in 2013
Financial Results
Total Rental Revenue
Total rental revenue, which includes minimum rents and percentage
rents, for the three months ended December
31, 2014 increased 21.4% to $13,475,000 compared with total rental revenue of
$11,097,000 for the comparable period
in 2013.
Total rental revenue for the year ended December 31, 2014 increased 21.1% to $49,563,000 compared with total rental revenue of
$40,931,000 for the year ended
December 31, 2013.
Funds from Operations
FFO for the three months ended
December 31, 2014 increased 13.8% to
$9,020,000 compared with FFO of
$7,928,000 for the comparable period
in 2013. FFO per share for the three months ended
December 31, 2014 increased 1.8% to
$0.57 compared with FFO per share of
$0.56 for the comparable period in
2013.
FFO for the year ended December 31,
2014 increased 17.4% to $33,317,000 compared with FFO of $28,370,000 for the year ended December 31, 2013. FFO per share for the
year ended December 31, 2014
increased 3.8% to $2.18 compared with
FFO per share of $2.10 for the year
ended December 31, 2013.
Adjusted Funds from Operations
AFFO for the three
months ended December 31, 2014
increased 12.7% to $9,099,000
compared with AFFO of $8,077,000 for
the comparable period in 2013. AFFO per share for the three
months ended December 31, 2014
increased 1.8% to $0.58 compared with
AFFO per share of $0.57 for the
comparable period in 2013.
AFFO for the year ended December 31,
2014 increased 17.2% to $33,946,000 compared with AFFO of $28,964,000 for the year ended December 31, 2013. AFFO per share for the
year ended December 31, 2014
increased 3.7% to $2.22 compared with
AFFO per share of $2.14 for the year
ended December 31, 2013.
Net Income
Net income for the three months ended
December 31, 2014 was $5,598,000, or $0.36 per share, compared with $5,489,000, or $0.40 per share, for the comparable period in
2013.
Net income for the year ended December
31, 2014 was $18,488,000, or
$1.24 per share, compared with
$19,675,000, or $1.50 per share, for the year ended December 31, 2013.
Dividend
The Company paid a cash dividend of
$0.45 per share on January 6, 2015 to stockholders of record on
December 23, 2014. The
quarterly dividend represented payout ratios of 78.9% of FFO and
78.2% of AFFO, respectively. For 2014, the Company paid an
annual dividend of $1.74, a 6.1%
increase over the $1.64 annual
dividend paid in 2013.
CEO Comments
"I am pleased with our 2014 operating
results, as well as the significant progress the Company has made
on a number of key strategic initiatives," said Joey Agree,
President and Chief Executive Officer. "During the year, we
invested over $165 million expanding
and diversifying our portfolio through accretive investments in net
lease retail properties, while also disposing of non-core shopping
center assets and preserving a best-in-class balance sheet.
In 2015, the Company will remain focused on strategically scaling
our operating platforms while maintaining our disciplined approach
to real estate underwriting."
Portfolio Update
As of December 31, 2014, the Company's portfolio
consisted of 209 properties located in 37 states and totaling 4.3
million square feet of gross leasable space. Retail net lease
properties contributed approximately 91.6% of annualized base rent,
including 10.5% of which was generated from properties ground
leased to tenants. The remaining rent was derived from
community shopping centers.
The portfolio was approximately 98.6% leased, had a weighted
average remaining lease term of approximately 11.9 years, and
generated approximately 55.8% of annualized base rents from
investment grade tenants.
The table below provides a summary of the Company's portfolio as
of December 31, 2014:
|
($ in
thousands)
|
|
Number
of
|
|
Annualized
|
|
% of
Ann.
|
|
%
IG
|
|
Wtd.
Avg.
|
Property
Type
|
|
Properties
|
|
Base Rent
(1)
|
|
Base
Rent
|
|
Rated
(2)
|
|
Lease
Term
|
Retail Net
Lease
|
|
180
|
|
$45,834
|
|
81.1%
|
|
56.0%
|
|
12.3 yrs
|
Retail Net Lease
(ground leases)
|
|
23
|
|
5,941
|
|
10.5%
|
|
89.1%
|
|
14.7 yrs
|
Total Retail Net
Lease
|
|
203
|
|
$51,775
|
|
91.6%
|
|
59.8%
|
|
12.6
yrs
|
Community Shopping
Centers
|
|
6
|
|
4,729
|
|
8.4%
|
|
11.8%
|
|
4.9 yrs
|
Total
Portfolio
|
|
209
|
|
$56,504
|
|
100.0%
|
|
55.8%
|
|
11.9
yrs
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Represents annualized straight-line rents as of December 31,
2014.
|
|
|
|
|
(2) Reflects
tenants, or parent entities thereof, with investment grade credit
ratings from S&P, Moody's, Fitch and/or NAIC.
|
|
Acquisitions
Total acquisition volume for the fourth
quarter of approximately $71,853,000
was a record for the Company and included 48 assets net leased to a
diverse group of retailers, including those operating in the quick
service restaurant, auto parts, auto service, grocery, financial
services and sporting goods sectors. These properties were
acquired at a weighted-average cap rate of 8.10% and with a
weighted-average remaining lease term of approximately 15.3
years.
Acquisition volume for 2014 was also a record, as the Company
acquired 77 retail net lease assets for an aggregate purchase price
of approximately $147,477,000.
The properties are located in 22 states and leased to 28 tenants
operating across 15 retail sectors. The Company acquired
these assets at a weighted-average cap rate of approximately 8.16%
and with a weighted-average remaining lease term of approximately
14.1 years.
Dispositions
In the fourth quarter, the Company
completed the sale of two non-core assets, including Petoskey Town
Center in Petoskey, Michigan and
Chippewa Commons in Chippewa Falls, Wisconsin. Petoskey Town
Center is a 174,870 square foot shopping center anchored by Kmart
and Hobby Lobby, and Chippewa Commons is a 169,271 square foot
shopping center anchored by Kmart and Mega Foods.
Overall, the Company sold four assets in 2014 for aggregate
gross proceeds of approximately $12,900,000. These dispositions included three
Kmart-anchored shopping centers. Additionally, the Company
sold a land parcel under a third-party owned Rite-Aid in
East Lansing, Michigan that was
subject to a purchase option exercised by the lessee.
Development and Joint Venture Capital Solutions
In
the fourth quarter, the Company completed its JVCS project in
Burlington, Washington. The
20,000 square foot store is net leased to Cash & Carry until
November 2029. Additionally, earlier in 2014, the Company
completed a multi-tenant project in New
Lenox, Illinois that is net leased to T.J. Maxx, Petco and Ross Dress for Less. The Company owns a
100% fee simple interest in both projects.
The Company also delivered three new developments to tenants in
2014, including a Wawa convenience store in St. Petersburg, Florida, a McDonald's
restaurant in East Palatka,
Florida and a Buffalo Wild Wings restaurant in St. Augustine, Florida.
Subsequent to December 31, 2014,
the Company executed a ground lease, subject to customary
contingencies, with an industry leading restaurant for the
development of a newly created outlot at its Capital Plaza shopping
center in Frankfort,
Kentucky. The project is expected to be completed during the
first quarter of 2016.
Leasing
During the fourth quarter, Best Buy executed
a five-year lease extension to remain at the Company's North
Lakeland Plaza shopping center until January
2021. The lease extension, subject to standard governmental
approvals, allowed for the creation of an outlot in the existing
parking field at the center. The Company currently has a
letter of intent with an industry leading coffee retailer for the
development of a freestanding store at this location.
Additionally, the Company executed extensions for approximately
7,750 square feet of small shop space within the portfolio.
During 2014, and excluding properties that were sold, the
Company executed extensions on over 330,000 square feet of gross
leasable area throughout the portfolio. Material extensions
included a 90,500 square foot freestanding Kmart in Oscoda, Michigan, an 86,500 square foot Kmart
at Marshall Plaza in Marshall,
Michigan, a 52,000 square foot freestanding Kmart in
Grayling, Michigan, a 20,000
square foot Staples at Central Michigan Commons in Mt. Pleasant, Michigan and the 52,000 square
foot Best Buy at North Lakeland Plaza in Lakeland, Florida.
Top Tenants
The following is a breakdown of
annualized base rents in effect at December
31, 2014 for the Company's top ten tenants:
|
($ in
thousands)
|
|
Annualized
|
|
% of
Ann.
|
Tenant /
Concept
|
|
Base Rent
(1)
|
|
Base
Rent
|
Walgreens
|
|
$12,362
|
|
21.9%
|
Wawa
|
|
2,465
|
|
4.4%
|
CVS
|
|
2,463
|
|
4.4%
|
Wal-Mart
|
|
2,039
|
|
3.6%
|
Rite Aid
|
|
1,962
|
|
3.5%
|
Lowe's
|
|
1,846
|
|
3.3%
|
LA Fitness
|
|
1,694
|
|
3.0%
|
Kmart
|
|
1,618
|
|
2.9%
|
Taco Bell
(2)
|
|
1,537
|
|
2.7%
|
Academy
Sports
|
|
1,340
|
|
2.4%
|
Total
|
|
$29,326
|
|
52.1%
|
|
|
|
|
|
(1)
Represents annualized straight-line rents as of December 31,
2014.
|
(2)
Franchise restaurants operated by Charted Foods North,
LLC.
|
|
Tenant Sector
The following is a breakdown of
annualized base rents in effect at December
31, 2014 for the Company's top retail sectors:
|
($ in
thousands)
|
|
Annualized
|
|
% of
Ann.
|
Tenant
Sector
|
|
Base Rent
(1)
|
|
Base
Rent
|
Pharmacy
|
|
$16,788
|
|
29.7%
|
Restaurants - Quick
Service
|
|
4,247
|
|
7.5%
|
Apparel
|
|
3,423
|
|
6.1%
|
Warehouse
Clubs
|
|
2,957
|
|
5.2%
|
Sporting
Goods
|
|
2,736
|
|
4.8%
|
Convenience
Stores
|
|
2,599
|
|
4.6%
|
Health &
Fitness
|
|
2,546
|
|
4.5%
|
Grocery
Stores
|
|
2,426
|
|
4.3%
|
General
Merchandise
|
|
2,006
|
|
3.6%
|
Home
Improvement
|
|
1,846
|
|
3.3%
|
Restaurants - Casual
Dining
|
|
1,848
|
|
3.3%
|
Financial
Services
|
|
1,693
|
|
3.0%
|
Other (2)
|
|
11,389
|
|
20.1%
|
Total
|
|
$56,504
|
|
100.0%
|
|
|
|
|
|
(1)
Represents annualized straight-line rents as of December 31,
2014.
|
(2) Includes
sectors generating less than 3.0% of annualized base
rent.
|
|
Lease Expiration
The following table, as of
December 31, 2014, sets forth
contractual lease expirations within the Company's portfolio,
assuming that none of the tenants exercise renewal
options:
(in
thousands)
|
|
|
|
Annualized
Base Rent (1)
|
|
Gross
Leasable Area
|
Year
|
|
Leases
|
|
$
Amount
|
|
% of
Total
|
|
Sq.
Ft.
|
|
% of
Total
|
2015
|
|
7
|
|
$726
|
|
1.3%
|
|
152
|
|
3.5%
|
2016
|
|
9
|
|
318
|
|
0.6%
|
|
35
|
|
0.8%
|
2017
|
|
12
|
|
1,867
|
|
3.3%
|
|
134
|
|
3.1%
|
2018
|
|
16
|
|
2,085
|
|
3.7%
|
|
305
|
|
7.1%
|
2019
|
|
15
|
|
3,738
|
|
6.6%
|
|
344
|
|
8.0%
|
2020
|
|
15
|
|
2,740
|
|
4.8%
|
|
321
|
|
7.4%
|
2021
|
|
15
|
|
4,256
|
|
7.5%
|
|
256
|
|
5.9%
|
2022
|
|
12
|
|
2,605
|
|
4.6%
|
|
257
|
|
6.0%
|
2023
|
|
15
|
|
2,419
|
|
4.3%
|
|
221
|
|
5.1%
|
2024
|
|
12
|
|
3,095
|
|
5.5%
|
|
210
|
|
4.9%
|
Thereafter
|
|
135
|
|
32,655
|
|
57.8%
|
|
2,080
|
|
48.2%
|
Total
|
|
263
|
|
$56,504
|
|
100.0%
|
|
4,315
|
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Represents annualized straight-line rents as of December 31,
2014.
|
|
|
Capital Markets and Balance Sheet
Capital Markets
Activity
In July 2013, the
Company entered into a $250,000,000
senior unsecured Revolving Credit and Term Loan Agreement which
increased the size of the Company's revolving credit facility from
$85,000,000 to $150,000,000, added a new $65,000,000 term loan and amended its existing
$35,000,000 term loan to conform to
the terms of the agreement.
The maturity date on the revolving credit facility was extended
to July 21, 2018, with an additional
one-year extension option; the new $65,000,000 term loan has a maturity date of
July 21, 2021; and the existing
$35,000,000 term loan remains due on
September 29, 2020.
In December 2014, the Company
completed an underwritten public offering of 2,587,500 shares of
common stock, including the full exercise of the underwriter's
over-allotment option, resulting in gross proceeds to the Company
of approximately $76,771,000.
Balance Sheet Summary
As of December 31, 2014, the Company's total debt to
total market capitalization was approximately 28.5%. Total
market capitalization is calculated as the sum of total debt and
the market value of the Company's outstanding shares of common
stock, assuming conversion of operating partnership units.
For the quarter and year ended December
31, 2014, the Company's fully diluted weighted average
shares outstanding were 15,450,135 and 14,966,895. The basic
weighted average shares outstanding for the quarter and year ended
December 31, 2014 were 15,364,435 and
14,882,586.
The Company's assets are held by, and all of its operations are
conducted through, Agree Limited Partnership, of which the Company
is the sole general partner. As of December 31, 2014, there were 347,619 operating
partnership units outstanding and the Company held a 98.06%
interest in the operating partnership.
Conference Call/Webcast
Agree Realty Corporation will
host a live broadcast of its fourth quarter 2014 conference call on
Tuesday, February 24, 2015 at
9:00 am EST to discuss its financial
and operating results. The live broadcast will be available online
at: http://www.videonewswire.com/event.asp?id=101551 and also by
telephone at 1-866-363-3979 (USA
Toll Free) and 1-412-902-4206
(International). A replay will be available shortly after the
call until May 24, 2015 at
1-877-344-7529 (USA Toll Free, conference #10060363) or
1-412-317-0088 (International, conference #10060363).
About Agree Realty Corporation
Agree Realty
Corporation is primarily engaged in the acquisition and development
of properties net leased to industry leading retail tenants.
The Company currently owns and operates a portfolio of 217
properties located in 38 states and containing 4.5 million square
feet of gross leasable space. The common stock of Agree
Realty Corporation is listed on the New York Stock Exchange under
the symbol "ADC."
For additional information, visit the Company's home page at
http://www.agreerealty.com.
Forward-Looking Statements
The Company
considers portions of the information contained in this release to
be forward-looking statements within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, each as amended. These forward-looking
statements represent the Company's expectations, plans and beliefs
concerning future events. Although these forward-looking
statements are based on good faith beliefs, reasonable assumptions
and the Company's best judgment reflecting current information,
certain factors could cause actual results to differ materially
from such forward–looking statements. Such factors are
detailed from time to time in reports filed or furnished by the
Company with the Securities and Exchange Commission, including the
Company's Form 10-K for the year ended December 31, 2013. Except as required by
law, the Company assumes no obligation to update these
forward–looking statements, even if new information becomes
available in the future.
Agree Realty
Corporation
Operating Results
(in thousands, except per share amounts)
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Revenues:
|
|
|
|
|
|
|
|
|
Minimum
rents
|
|
$ 13,462
|
|
$ 11,080
|
|
$ 49,403
|
|
$ 40,895
|
Percentage
rent
|
|
13
|
|
17
|
|
160
|
|
36
|
Operating cost
reimbursements
|
|
845
|
|
602
|
|
3,825
|
|
2,568
|
Other
income
|
|
3
|
|
17
|
|
171
|
|
19
|
Total
Revenues
|
|
14,323
|
|
11,716
|
|
53,559
|
|
43,518
|
Expenses:
|
|
|
|
|
|
|
|
|
Real estate
taxes
|
|
555
|
|
493
|
|
2,766
|
|
2,036
|
Property operating
expenses
|
|
384
|
|
293
|
|
1,679
|
|
1,192
|
Land lease
payments
|
|
132
|
|
107
|
|
472
|
|
428
|
General and
administration
|
|
1,672
|
|
1,285
|
|
6,629
|
|
5,952
|
Depreciation and
amortization
|
|
3,143
|
|
2,261
|
|
11,103
|
|
8,489
|
Impairment
charge
|
|
-
|
|
-
|
|
3,020
|
|
-
|
Total Operating
Expenses
|
|
5,886
|
|
4,439
|
|
25,669
|
|
18,097
|
Income from
Operations
|
|
8,437
|
|
7,277
|
|
27,890
|
|
25,421
|
Other Income
(Expense)
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(2,479)
|
|
(1,875)
|
|
(8,587)
|
|
(6,475)
|
Loss on sale of
assets
|
|
(235)
|
|
-
|
|
(528)
|
|
-
|
Income Before
Discontinued Operations
|
|
5,723
|
|
5,402
|
|
18,775
|
|
18,946
|
Gain on sale of asset
from discontinued operations
|
|
-
|
|
-
|
|
123
|
|
946
|
(Loss) Income from
discontinued operations
|
|
-
|
|
220
|
|
15
|
|
298
|
Total Discontinued
Operations
|
|
-
|
|
220
|
|
138
|
|
1,244
|
Net
Income
|
|
5,723
|
|
5,622
|
|
18,913
|
|
20,190
|
Net income
attributable to non-controlling interest
|
|
125
|
|
133
|
|
425
|
|
515
|
Net Income
Attributable to Agree Realty Corporation
|
|
5,598
|
|
5,489
|
|
18,488
|
|
19,675
|
|
|
|
|
|
|
|
|
|
Other
Comprehensive Income (loss) , Net of ($39), $20, ($52), and
$47
|
|
|
|
|
|
|
|
|
Attributable to
Non-Controlling Interest
|
|
(1,962)
|
|
780
|
|
(2,532)
|
|
1,766
|
Total
Comprehensive Income Attributable to Agree Realty
Corporation
|
$ 3,636
|
|
$ 6,269
|
|
$ 15,956
|
|
$ 21,441
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per
Share
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$ 0.36
|
|
$ 0.39
|
|
$ 1.23
|
|
$ 1.41
|
Discontinued
operations
|
|
-
|
|
0.01
|
|
0.01
|
|
0.10
|
|
|
$ 0.36
|
|
$ 0.40
|
|
$ 1.24
|
|
$ 1.51
|
Dilutive Earnings
Per Share
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$ 0.36
|
|
$ 0.39
|
|
$ 1.23
|
|
$ 1.40
|
Discontinued
operations
|
|
-
|
|
0.01
|
|
0.01
|
|
0.10
|
|
|
$ 0.36
|
|
$ 0.40
|
|
$ 1.24
|
|
$ 1.50
|
Weighted Average
Number of Common Shares Outstanding - Basic
|
|
15,364
|
|
13,618
|
|
14,883
|
|
13,066
|
Weighted Average
Number of Common Shares Outstanding - Diluted
|
|
15,450
|
|
13,712
|
|
14,967
|
|
13,158
|
Agree Realty
Corporation
Funds from
Operations (in thousands, except per share amounts)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Reconciliation of
Funds from Operations to Net Income: (1)
|
|
|
|
|
|
|
|
|
Net income
|
|
$ 5,723
|
|
$ 5,622
|
|
$ 18,913
|
|
$ 20,190
|
Depreciation of real
estate assets
|
|
2,258
|
|
1,849
|
|
8,362
|
|
6,930
|
Amortization of
leasing costs
|
|
32
|
|
30
|
|
126
|
|
112
|
Amortization of lease
intangibles
|
|
772
|
|
427
|
|
2,491
|
|
1,634
|
Impairment
charge
|
|
-
|
|
-
|
|
3,020
|
|
450
|
(Gain) Loss on sale
of assets
|
|
235
|
|
-
|
|
405
|
|
(946)
|
Funds from
Operations
|
|
$ 9,020
|
|
7,928
|
|
$ 33,317
|
|
28,370
|
Funds from
Operations Per Share - Diluted
|
|
$ 0.57
|
|
$ 0.56
|
|
$ 2.18
|
|
$ 2.10
|
Weighted Average
Number of Common Shares Outstanding - Diluted
|
|
15,798
|
|
14,060
|
|
15,315
|
|
13,505
|
|
|
Adjusted Funds
from Operations (in thousands, except per share
amounts)
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Reconciliation of
Adjusted Funds from Operations to Net Income: (1)
|
|
|
|
|
|
|
|
|
Net income
|
|
$ 5,723
|
|
$ 5,622
|
|
$ 18,913
|
|
$ 20,190
|
Cumulative
adjustments to calculate FFO
|
|
3,297
|
|
2,306
|
|
14,404
|
|
8,180
|
Funds from
Operations
|
|
9,020
|
|
7,928
|
|
33,317
|
|
28,370
|
Straight-line accrued
rent
|
|
(427)
|
|
(265)
|
|
(1,416)
|
|
(1,148)
|
Deferred revenue
recognition
|
|
(116)
|
|
(116)
|
|
(463)
|
|
(464)
|
Stock based
compensation expense
|
|
431
|
|
421
|
|
1,987
|
|
1,813
|
Amortization of
financing costs
|
|
112
|
|
92
|
|
398
|
|
326
|
Non-Real Estate
Depreciation / Amortization
|
|
79
|
|
17
|
|
123
|
|
67
|
Adjusted Funds
from Operations
|
|
$ 9,099
|
|
$ 8,077
|
|
$ 33,946
|
|
$ 28,964
|
Adjusted Funds
from Operations Per Share - Diluted
|
|
$ 0.58
|
|
$ 0.57
|
|
$ 2.22
|
|
$ 2.14
|
|
|
|
|
|
|
|
|
|
Supplemental
Information:
|
|
|
|
|
|
|
|
|
Scheduled principal
repayments
|
|
$ 923
|
|
$ 892
|
|
$ 3,599
|
|
$ 3,478
|
Capitalized
interest
|
|
$
42
|
|
$ 128
|
|
$ 263
|
|
$ 567
|
Capitalized building
improvements
|
|
$
32
|
|
$
-
|
|
$ 145
|
|
$
87
|
|
|
(1)
|
Funds from Operations
("FFO") is defined by the National Association of Real Estate
Investment Trusts, Inc. (NAREIT) to mean net income computed
in accordance with U.S. generally accepted accounting principles
(GAAP), excluding gains (or losses) from sales of property, plus
real estate related depreciation and amortization and any
impairment charges on a depreciable real estate asset, and after
adjustments for unconsolidated partnerships and joint
ventures. Management uses FFO as a supplemental measure to
conduct and evaluate the Company's business because there are
certain limitations associated with using GAAP net income by itself
as the primary measure of the Company's operating
performance. Historical cost accounting for real estate
assets in accordance with GAAP implicitly assumes that the value of
real estate assets diminishes predictably over time. Since
real estate values instead have historically risen or fallen with
market conditions, management believes that the presentation of
operating results for real estate companies that use historical
cost accounting is insufficient by itself.
|
|
|
|
FFO should not be
considered as an alternative to net income as the primary indicator
of the Company's operating performance, or as an alternative to
cash flow as a measure of liquidity. Further, while the
Company adheres to the NAREIT definition of FFO, its presentation
of FFO is not necessarily comparable to similarly titled measures
of other REITs due to the fact that all REITs may not use the same
definition.
|
|
|
|
Adjusted Funds from
Operations ("AFFO") is a non-GAAP financial measure of operating
performance used by many companies in the REIT industry. AFFO
further adjusts FFO for certain non-cash items that reduce or
increase net income in accordance with GAAP. Management
considers AFFO a useful supplemental measure of the Company's
performance, however, AFFO should not be considered an alternative
to net income as an indication of the Company's performance, or to
cash flow as a measure of liquidity or ability to make
distributions. The Company's computation of AFFO may differ
from the methodology for calculating AFFO used by other equity
REITs, and therefore may not be comparable to such other
REITs. Note that, during the year ended December 31, 2014,
the Company adjusted its calculation of AFFO to exclude
non-recurring capitalized building improvements and to include
non-real estate related depreciation and amortization.
Management believes that these changes provide a more useful
measure of operating performance in the context of AFFO.
|
Agree Realty
Corporation
Consolidated
Balance Sheets (in thousands)
(Unaudited)
|
|
|
|
December
31,
|
|
December
31,
|
|
|
2014
|
|
2013
|
Assets:
|
|
|
|
|
Land
|
|
$
195,091
|
|
$
162,097
|
Buildings
|
|
393,827
|
|
297,465
|
Accumulated
depreciation
|
|
(59,090)
|
|
(60,634)
|
Property under
development
|
|
229
|
|
6,959
|
Property held for
sale
|
|
-
|
|
4,845
|
Net real estate
investments
|
|
530,057
|
|
410,732
|
Cash and cash
equivalents
|
|
5,399
|
|
14,537
|
Accounts
receivable
|
|
4,508
|
|
3,263
|
Deferred costs, net
of amortization
|
|
51,271
|
|
30,990
|
Other
assets
|
|
2,345
|
|
3,220
|
Total
Assets
|
|
$
593,580
|
|
$
462,742
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Notes
Payable:
|
|
|
|
|
Mortgage notes
payable
|
|
$
106,762
|
|
$
113,898
|
Unsecured revolving
credit facility
|
|
15,000
|
|
9,500
|
Unsecured term
loan
|
|
100,000
|
|
35,000
|
Total Notes
Payable
|
|
221,762
|
|
158,398
|
Deferred
revenue
|
|
1,004
|
|
1,467
|
Dividends and
distributions payable
|
|
8,048
|
|
6,244
|
Other
liabilities
|
|
6,731
|
|
4,417
|
Total
Liabilities
|
|
237,545
|
|
170,526
|
|
|
|
|
|
Stockholder's
Equity
|
|
|
|
|
Common stock
(17,539,946 and 14,883,314 shares)
|
|
2
|
|
1
|
Additional paid-in
capital
|
|
388,263
|
|
312,975
|
Deficit
|
|
(32,585)
|
|
(23,879)
|
Accumulated other
comprehensive income (loss)
|
|
(2,060)
|
|
472
|
Non-controlling
interest
|
|
2,415
|
|
2,647
|
Total
Stockholder's Equity
|
|
356,035
|
|
292,216
|
|
|
$
593,580
|
|
$
462,742
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/agree-realty-corporation-reports-operating-results-for-the-fourth-quarter-and-full-year-2014-300039776.html
SOURCE Agree Realty Corporation