BLOOMFIELD HILLS, Mich.,
July 25, 2016 /PRNewswire/ -- Agree
Realty Corporation (NYSE: ADC) (the "Company") today announced
results for the quarter ended June 30,
2016. All per share amounts included herein are on a
diluted per common share basis unless otherwise stated.
Second Quarter 2016 Financial and Operating
Highlights:
- Raised approximately $110.1
million in net proceeds from the issuance of 2.9 million
common shares
- Increased Net Income attributable to the Company 3.9% to
$10.7 million
- Increased Funds from Operations ("FFO) 23.8% to $13.8 million
- Increased Adjusted Funds from Operations ("AFFO") 24.3% to
$13.7 million
- Increased rental revenue 23.6% to $19.9
million
- Invested $153.5 million in 36
retail net lease properties
- Announced three new developments or Partner Capital Solutions
("PCS") projects
- Declared a dividend of $0.48 per
share, an increase of 3.2% over the dividend per share declared in
the second quarter of 2015
Financial Results
Total Rental Revenue
Total rental revenue, which includes minimum rents and
percentage rents, for the three months ended June 30, 2016 increased 23.6% to $19.9 million, compared to total rental revenue
of $16.1 million for the comparable
period in 2015.
Total rental revenue for the six months ended June 30, 2016 increased 25.8% to $38.6 million, compared to total rental revenue
of $30.7 million for the comparable
period in 2015.
Net Income
Net income attributable to the Company for the three months
ended June 30, 2016 increased 3.9% to
$10.7 million, compared to
$10.3 million for the comparable
period in 2015. Net income per share attributable to the
Company for the three months ended June 30,
2016 decreased 17.4% to $0.48,
compared to $0.58 per share for the
comparable period in 2015.
Net income attributable to the Company for the six months ended
June 30, 2016 increased 9.0% to
$18.1 million, compared to
$16.6 million for the comparable
period in 2015. Net income per share attributable to the
Company for the six months ended June 30,
2016 decreased 10.8% to $0.85,
compared to $0.95 per share for the
comparable period in 2015.
Funds from Operations
FFO for the three months ended June 30,
2016 increased 23.8% to $13.8
million, compared to FFO of $11.1
million for the comparable period in 2015. FFO per
share for the three months ended June 30,
2016 decreased 1.8% to $0.61,
compared to FFO per share of $0.62
for the comparable period in 2015.
FFO for the six months ended June 30,
2016 increased 25.4% to $26.4
million, compared to FFO of $21.1
million for the comparable period in 2015. FFO per
share for the six months ended June 30,
2016 increased 3.0% to $1.22,
compared to FFO per share of $1.18
for the comparable period in 2015.
Adjusted Funds from Operations
AFFO for the three months ended June 30,
2016 increased 24.3% to $13.7
million, compared to AFFO of $11.0
million for the comparable period in 2015. AFFO per
share for the three months ended June 30,
2016 decreased 1.4% to $0.61,
compared to AFFO per share of $0.62
for the comparable period in 2015.
AFFO for the six months ended June 30,
2016 increased 25.4% to $26.5
million, compared to AFFO of $21.1
million for the comparable period in 2015. AFFO per
share for the six months ended June 30,
2016 increased 3.0% to $1.22,
compared to AFFO per share of $1.18
for the comparable period in 2015.
Dividend
The Company paid a cash dividend of $0.48 per share on July
15, 2016 to stockholders of record on June 30, 2016, a 3.2% increase over the
$0.465 quarterly dividend declared in
the second quarter of 2015. The quarterly dividend represents
payout ratios of approximately 78.9% of FFO per share and 79.1% of
AFFO per share, respectively.
CEO Comments
"We're extremely pleased with our performance during the quarter
as we continue to strategically execute all phases of our
business," said Joey Agree, President and Chief Executive Officer
of Agree Realty Corporation. "Throughout the quarter we invested in
36 high-quality retail net lease properties across our three
external growth platforms. These investments were
concentrated among industry-leaders in e-commerce resistant
sectors. As we shift our focus to the second half of 2016,
both our investment pipeline as well as our balance sheet are
well-positioned to continue to execute our operating strategy and
create value for our shareholders."
Portfolio Update
As of June 30, 2016, the Company's
portfolio consisted of 326 properties located in 42 states and
totaling 6.3 million square feet of gross leasable space.
Properties ground leased to tenants accounted for 7.8% of
annualized base rent.
The portfolio was approximately 99.6% leased, had a
weighted-average remaining lease term of approximately 11.0 years,
and generated approximately 46.1% of annualized base rents from
investment grade tenants.
The table below provides a summary of the Company's portfolio as
of June 30, 2016:
Property
Type
|
Number
of
Properties
|
|
Annualized
Base Rent (1)
|
|
Percent
of
Annualized
Base Rent
|
|
Percent
Investment
Grade (2)
|
|
Weighted
Average
Lease Term
|
|
|
|
|
|
|
|
|
|
|
Retail Net
Lease
|
294
|
|
$77,801
|
|
90.2%
|
|
42.8%
|
|
10.9 yrs
|
Retail Net Lease Ground
Leases
|
29
|
|
6,691
|
|
7.8%
|
|
88.5%
|
|
13.2 yrs
|
Total Retail Net
Lease
|
323
|
|
84,493
|
|
98.0%
|
|
46.4%
|
|
11.1
yrs
|
Total
Portfolio
|
326
|
|
$86,243
|
|
100.0%
|
|
46.1%
|
|
11.0
yrs
|
Annualized base rent is in thousands; any differences are the
result of rounding.
(1) Represents annualized
straight-line rent as of June 30,
2016.
(2) Reflects tenants, or parent
entities thereof, with investment grade credit ratings from
Standard & Poor's, Moody's, Fitch and/or NAIC.
Acquisitions and Dispositions
Total acquisition volume for the second quarter of 2016 was
approximately $151.5 million and
included 34 assets net leased to a number of notable retailers
operating in the discount apparel, home improvement, grocery,
crafts and novelties, farm and rural supply, specialty retail,
quick service restaurant, discount and auto service sectors.
The properties are located in 15 states and leased to 23 distinct
tenants operating across 15 retail sectors. These properties
were acquired at a weighted-average cap rate of 7.8% and with a
weighted-average remaining lease term of approximately 11.6
years.
During the quarter, the Company sold its Walgreens in
Port St. John, Florida for
approximately $7.3 million, or a 5.5%
cap rate on in-place net operating income.
Development and Partner Capital Solutions
In the second quarter of 2016, the Company, through its PCS
program, completed its previously announced Burger King in Farr
West Utah. This project is part of the Company's previously
announced partnership with Meridian Restaurants and has a total
project cost of approximately $1.6
million.
Also within the quarter, the Company finalized its newly
announced Family Fare Quick Stop in Marshall, Michigan. This project has a
total project cost of approximately $0.4
million and is subject to a new 10-year ground
lease.
The Company continues to execute on a number of active
development and Partner Capital Solutions projects on behalf of
industry-leading retail tenants, including the following completed
or commenced projects:
Tenant
|
|
Location
|
|
Lease
Structure
|
|
Lease
Term
|
|
Actual or
Anticipated Rent Commencement
|
|
Status
|
|
|
|
|
|
|
|
|
|
|
|
Hobby Lobby
|
|
Springfield,
OH
|
|
Build-to-Suit
|
|
15 Years
|
|
Q1 2016
|
|
Completed
|
Burger
King(1)
|
|
Farr West,
UT
|
|
Build-to-Suit
|
|
20 Years
|
|
Q2 2016
|
|
Completed
|
Family Fare Quick
Stop
|
|
Marshall,
MI
|
|
Ground
Lease
|
|
10 Years
|
|
Q2 2016
|
|
Completed
|
Burger
King(1)
|
|
Devils Lake,
ND
|
|
Build-to-Suit
|
|
20 Years
|
|
Q3 2016
|
|
Under
Construction
|
Wawa
|
|
Orlando,
FL
|
|
Ground
Lease
|
|
20 Years
|
|
Q3 2016
|
|
Under
Construction
|
Chick-fil-A
|
|
Frankfort,
KY
|
|
Ground
Lease
|
|
20 Years
|
|
Q3 2016
|
|
Under
Construction
|
Starbucks
|
|
North Lakeland,
FL
|
|
Build-to-Suit
|
|
10 Years
|
|
Q1 2017
|
|
Under
Construction
|
Texas
Roadhouse
|
|
Mount Pleasant,
MI
|
|
Ground
Lease
|
|
15 Years
|
|
Q2 2017
|
|
Under
Construction
|
Camping
World
|
|
Tyler, TX
|
|
Build-to-Suit
|
|
20 Years
|
|
Q2 2017
|
|
Under
Construction
|
(1) Franchise restaurants operated by Meridian Restaurants
Unlimited, LC.
Leasing
During the second quarter of 2016 the Company executed new
leases, extensions or options on over 20,000 square feet of gross
leasable area throughout the existing portfolio. The Company has no
remaining lease maturities in 2016.
Top Tenants
The following table presents annualized base rents for all
tenants that represent 1.5% or greater of the Company's total
annualized base rent as of June 30,
2016:
Tenant
|
|
Annualized
Base Rent (1)
|
|
Percent of
Annualized
Base Rent
|
|
|
|
|
|
Walgreens
|
|
$12,161
|
|
14.1%
|
Wal-Mart
|
|
4,224
|
|
4.9%
|
Lowe's
|
|
3,099
|
|
3.6%
|
Mister Car
Wash
|
|
2,580
|
|
3.0%
|
Smart &
Final
|
|
2,518
|
|
2.9%
|
Wawa
|
|
2,465
|
|
2.9%
|
CVS
|
|
2,463
|
|
2.9%
|
Academy
Sports
|
|
1,982
|
|
2.3%
|
Rite Aid
|
|
1,886
|
|
2.2%
|
Dollar
General
|
|
1,795
|
|
2.1%
|
Tractor
Supply
|
|
1,791
|
|
2.1%
|
Hobby Lobby
|
|
1,786
|
|
2.1%
|
24 Hour
Fitness
|
|
1,759
|
|
2.0%
|
BJ's
Wholesale
|
|
1,709
|
|
2.0%
|
LA Fitness
|
|
1,694
|
|
2.0%
|
Taco
Bell(2)
|
|
1,537
|
|
1.8%
|
Dollar Tree
|
|
1,427
|
|
1.7%
|
Burger
King(3)
|
|
1,376
|
|
1.6%
|
Other(4)
|
|
37,991
|
|
43.8%
|
Total Top
Tenants
|
|
$86,243
|
|
100.0%
|
Annualized base rent is in thousands; any differences are the
result of rounding.
(1) Represents annualized
straight-line rent as of June 30,
2016.
(2) Franchise restaurants operated by
Charter Foods North, LLC.
(3) Franchise
restaurants operated by Meridian Restaurants Unlimited,
LC.
(4) Includes tenants generating less than 1.5%
of annualized base rent.
Retail Sectors
The following table presents annualized base rents for the
Company's top retail sectors that represent 2.5% or greater of the
Company's total annualized base rent as of June 30, 2016:
Sector
|
|
Annualized
Base Rent (1)
|
|
Percent of
Annualized
Base Rent
|
|
|
|
|
|
Pharmacy
|
|
$16,510
|
|
19.1%
|
Restaurants - Quick
Service
|
|
5,887
|
|
6.8%
|
Grocery
Stores
|
|
5,851
|
|
6.8%
|
Auto
Service
|
|
4,711
|
|
5.5%
|
Discount
Apparel
|
|
4,706
|
|
5.5%
|
Specialty
Retail
|
|
4,000
|
|
4.6%
|
General
Merchandise
|
|
3,956
|
|
4.6%
|
Warehouse
Clubs
|
|
3,749
|
|
4.3%
|
Home
Improvement
|
|
3,720
|
|
4.3%
|
Health &
Fitness
|
|
3,562
|
|
4.1%
|
Sporting
Goods
|
|
3,149
|
|
3.7%
|
Crafts and
Novelties
|
|
2,865
|
|
3.3%
|
Convenience
Stores
|
|
2,630
|
|
3.0%
|
Restaurants - Casual
Dining
|
|
2,388
|
|
2.8%
|
Farm and Rural
Supply
|
|
2,324
|
|
2.7%
|
Dollar
Stores
|
|
2,280
|
|
2.6%
|
Auto Parts
|
|
2,257
|
|
2.6%
|
Other(2)
|
|
11,698
|
|
13.7%
|
Total
Portfolio
|
|
$86,243
|
|
100.0%
|
Annualized base rent is in thousands; any differences are the
result of rounding.
(1) Represents annualized
straight-line rent as of June 30,
2016.
(2) Includes sectors generating less than
2.5% of annualized base rent.
Lease Expiration
The following table presents contractual lease expirations
within the Company's portfolio as of June
30, 2016, assuming that no tenants exercise renewal
options:
Year
|
Leases
|
|
Annualized
Base Rent (1)
|
|
Percent
of
Annualized
Base Rent
|
|
Gross
Leasable Area
|
|
Percent of
Gross
Leasable Area
|
|
|
|
|
|
|
|
|
|
|
2016
|
0
|
|
$0
|
|
0.0%
|
|
0
|
|
0.0%
|
2017
|
10
|
|
1,617
|
|
1.9%
|
|
114
|
|
1.8%
|
2018
|
15
|
|
2,257
|
|
2.6%
|
|
356
|
|
5.6%
|
2019
|
12
|
|
4,326
|
|
5.0%
|
|
372
|
|
5.9%
|
2020
|
17
|
|
2,521
|
|
2.9%
|
|
237
|
|
3.8%
|
2021
|
28
|
|
5,674
|
|
6.6%
|
|
354
|
|
5.6%
|
2022
|
19
|
|
4,077
|
|
4.7%
|
|
370
|
|
5.9%
|
2023
|
26
|
|
4,696
|
|
5.4%
|
|
437
|
|
6.9%
|
2024
|
33
|
|
8,151
|
|
9.5%
|
|
779
|
|
12.3%
|
2025
|
32
|
|
6,118
|
|
7.1%
|
|
436
|
|
6.9%
|
Thereafter
|
178
|
|
46,806
|
|
54.3%
|
|
2,864
|
|
45.3%
|
Total
Portfolio
|
370
|
|
$86,243
|
|
100.0%
|
|
6,319
|
|
100.0%
|
Annualized base rent and gross leasable area are in
thousands; any differences are the result of
rounding.
(1) Represents annualized straight-line
rent as of June 30, 2016.
Capital Markets and Balance Sheet
Capital Markets
On May 10, 2016, the Company
announced it completed a follow-on public offering of 2,875,000
shares of common stock, which included the underwriters' full
exercise of their option to purchase additional shares. Total net
proceeds were approximately $109.7
million after deducting the underwriting discount and
offering expenses.
During the three months ended June 30,
2016, the Company issued 15,156 shares of common stock under
its at-the-market equity program ("ATM program"), realizing gross
proceeds of approximately $0.6
million.
Subsequent to the end of the second quarter, on July 6, 2016 the Company announced it has entered
into agreements for the issuance of $100
million of long-term, unsecured, fixed rate debt. The
combined $100 million of unsecured
financings will have a weighted average term of 10 years and a
blended interest rate of 3.87%.
Balance Sheet
As of June 30, 2016, the Company's
total debt to total enterprise value was approximately 25.2%.
Total enterprise value 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 into
common stock.
For the three and six months ended June
30, 2016, the Company's fully diluted weighted-average
shares outstanding were 22.3 million and 21.4 million,
respectively. The basic weighted-average shares outstanding
for the three and six months ended June 30,
2016 were 22.2 million and 21.3 million, respectively.
The Company's assets are held by, and its operations are
conducted through, Agree Limited Partnership, of which the Company
is the sole general partner. As of June 30, 2016, there were 347,619 operating
partnership units outstanding and the Company held a 98.6% interest
in the operating partnership.
2016 Outlook
The Company's outlook for acquisition volume in 2016, which
assumes continued growth in economic activity, positive business
trends and other significant assumptions, remains between
$250 and $275 million of high-quality
retail net lease properties.
Conference Call/Webcast
The Company will host its quarterly analyst and investor
conference call on Tuesday, July 26,
2016 at 11:00 AM ET. To
participate in the conference call, please dial (866) 363-3979
approximately ten minutes before the call begins.
Additionally, a webcast of the conference call will be available
through the Company's website. To access the webcast, visit
www.agreerealty.com ten minutes prior to the start time of the
conference call and go to the Invest section of the website.
A replay of the conference call webcast will be archived and
available online through the Invest section of
www.agreerealty.com.
About Agree Realty Corporation
Agree Realty Corporation is a publicly traded real estate
investment trust 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 330 properties, located in 42 states and containing
approximately 6.4 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, please visit
www.agreerealty.com.
Forward-Looking Statements
This press release may contain certain "forward-looking
statements" made pursuant to the safe harbor provisions of the
Private Securities Reform Act of 1995. Forward-looking statements
are generally identifiable by use of forward-looking terminology
such as "may," "will," "should," "potential," "intend," "expect,"
"seek," "anticipate," "estimate," "approximately," "believe,"
"could," "project," "predict," "forecast," "continue," "assume,"
"plan," references to "outlook" or other similar words or
expressions. Forward-looking statements are based on certain
assumptions and can include future expectations, future plans and
strategies, financial and operating projections and forecasts and
other forward-looking information and estimates. These
forward-looking statements are subject to various risks and
uncertainties, many of which are beyond the Company's control,
which could cause actual results to differ materially from such
statements. These risks and uncertainties are described in greater
detail in the Company's filings with the Securities and Exchange
Commission, including, without limitation, the Company's Annual
Report on Form 10-K for the year ended December 31, 2015 and in subsequent quarterly
reports. Except as required by law, the Company disclaims any
obligation to update any forward-looking statements, whether as a
result of new information, future events or otherwise.
For further information about the Company's business and
financial results, please refer to the "Management's Discussion and
Analysis of Financial Condition and Results of Operations" and
"Risk Factors" sections of the Company's SEC filings, including,
but not limited to, its Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q, copies of which may be obtained at the Invest
section of the Company's website at
www.agreerealty.com.
All information in this press release is as of July 25, 2016. The Company undertakes no duty to
update the statements in this press release to conform the
statements to actual results or changes in the Company's
expectations.
Agree Realty
Corporation
|
Consolidated
Balance Sheet
|
($ in thousands,
except per share data)
|
|
|
June 30,
2016
|
|
December 31,
2015
|
Assets:
|
(Unaudited)
|
|
|
Real Estate
Investments:
|
|
|
|
Land
|
$
284,938
|
|
$
225,274
|
Buildings
|
628,219
|
|
526,912
|
Accumulated
depreciation
|
(62,944)
|
|
(56,401)
|
Property under
development
|
4,091
|
|
3,663
|
Net real estate
investments
|
854,304
|
|
699,448
|
Cash and cash
equivalents
|
4,035
|
|
2,712
|
Accounts receivable -
Tenants, net of allowance of $35 for possible losses at June 30,
2016 and December 31, 2015, respectively
|
9,974
|
|
7,418
|
Unamortized
Deferred Expenses:
|
|
|
|
Credit facility
financing Costs, net of accumulated amortization of $1,637 and
$1,532 at June 30, 2016 and December 31, 2015,
respectively
|
438
|
|
506
|
Leasing costs, net of
accumulated amortization of $599 and $554 at June 30,
2016 and December 31, 2015, respectively
|
1,140
|
|
664
|
Lease intangibles,
net of accumulated amortization of $14,290 and $10,578
at June 30, 2016 and December 31, 2015, respectively
|
100,511
|
|
76,552
|
Other
assets
|
2,702
|
|
2,570
|
Total
Assets
|
$
973,104
|
|
$
789,870
|
|
|
|
|
Liabilities:
|
|
|
|
Mortgage notes
payable, net
|
$
90,464
|
|
$
100,359
|
Unsecured Term Loans,
net
|
99,418
|
|
99,156
|
Senior Unsecured
Notes, net
|
99,197
|
|
99,390
|
Unsecured Revolving
Credit Facility
|
98,000
|
|
18,000
|
Dividends and
Distributions Payable
|
11,513
|
|
9,758
|
Deferred
Revenue
|
309
|
|
540
|
Accrued Interest
Payable
|
878
|
|
963
|
Accounts Payable and
Accrued Expense:
|
|
|
|
Capital
Expenditures
|
289
|
|
122
|
Operating
|
5,734
|
|
3,927
|
Interest Rate
Swaps
|
7,815
|
|
3,301
|
Deferred Income
Taxes
|
705
|
|
705
|
Tenant
Deposits
|
94
|
|
29
|
Total
Liabilities
|
414,416
|
|
336,250
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
Common stock, $.0001
par value, 45,000,000 shares authorized, 23,637,843 and 20,637,301
shares issued and outstanding, respectively
|
2
|
|
2
|
Preferred stock,
$.0001 par value per share, 4,000,000 shares authorized
|
|
|
|
Series A junior
participating preferred stock, $.0001 par value, 200,000
authorized, no shares issued and outstanding
|
-
|
|
-
|
Additional paid-in
capital
|
595,106
|
|
482,514
|
Dividends in excess
of net income
|
(31,137)
|
|
(28,262)
|
Accumulated other
comprehensive loss
|
(7,669)
|
|
(3,130)
|
Total Stockholders'
Equity - Agree Realty Corporation
|
556,302
|
|
451,124
|
Non-controlling
interest
|
2,386
|
|
2,496
|
Total
Stockholders' Equity
|
558,688
|
|
453,620
|
Total Liabilities
and Stockholders' Equity
|
$
973,104
|
|
$
789,870
|
Agree Realty
Corporation
|
Consolidated
Statements of Operations and Comprehensive Income
|
($ in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
Three months
ended
June 30,
|
|
Six months
ended
June 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(Unaudited)
|
|
(Unaudited)
|
Revenues
|
|
|
|
|
|
|
|
Minimum
rents
|
$
19,912
|
|
$
15,972
|
|
$
38,403
|
|
$
30,526
|
Percentage
rents
|
7
|
|
141
|
|
190
|
|
151
|
Operating cost
reimbursement
|
1,934
|
|
1,098
|
|
3,523
|
|
2,276
|
Other
income
|
(9)
|
|
8
|
|
(48)
|
|
10
|
Total
Revenues
|
21,844
|
|
17,219
|
|
42,068
|
|
32,963
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
Real estate
taxes
|
1,438
|
|
863
|
|
2,561
|
|
1,626
|
Property operating
expenses
|
929
|
|
416
|
|
1,501
|
|
987
|
Land lease
payments
|
163
|
|
137
|
|
327
|
|
269
|
General and
administrative
|
2,042
|
|
1,744
|
|
4,087
|
|
3,412
|
Depreciation and
amortization
|
5,665
|
|
4,117
|
|
10,750
|
|
7,671
|
Total Operating
Expenses
|
10,237
|
|
7,277
|
|
19,226
|
|
13,965
|
|
|
|
|
|
|
|
|
Income from
Operations
|
11,607
|
|
9,942
|
|
22,842
|
|
18,998
|
|
|
|
|
|
|
|
|
Other (Expense)
Income
|
|
|
|
|
|
|
|
Interest expense,
net
|
(3,497)
|
|
(2,933)
|
|
(7,146)
|
|
(5,394)
|
Gain on sale of
assets
|
2,718
|
|
3,456
|
|
2,718
|
|
3,535
|
Loss on debt
extinguishment
|
-
|
|
-
|
|
-
|
|
(180)
|
|
|
|
|
|
|
|
|
Net
Income
|
10,828
|
|
10,465
|
|
18,414
|
|
16,959
|
|
|
|
|
|
|
|
|
Less Net Income
Attributable to Non-Controlling Interest
|
167
|
|
201
|
|
292
|
|
327
|
|
|
|
|
|
|
|
|
Net Income
Attributable to Agree Realty Corporation
|
$
10,661
|
|
$
10,264
|
|
$
18,122
|
|
$
16,632
|
|
|
|
|
|
|
|
|
Net Income Per
Share Attributable to Agree Realty Corporation
|
|
|
|
|
|
|
|
Basic
|
$
0.48
|
|
$
0.59
|
|
$
0.85
|
|
$
0.95
|
Diluted
|
$
0.48
|
|
$
0.58
|
|
$
0.85
|
|
$
0.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Comprehensive Income
|
|
|
|
|
|
|
|
Net income
|
$
10,828
|
|
$
10,465
|
|
$
18,415
|
|
$
16,959
|
Other Comprehensive
Income (Loss)
|
(1,677)
|
|
1,621
|
|
(4,613)
|
|
(391)
|
Total Comprehensive
Income
|
9,151
|
|
12,086
|
|
13,802
|
|
16,568
|
Comprehensive Income
Attributable to Non-Controlling Interest
|
(140)
|
|
(232)
|
|
(219)
|
|
(319)
|
Comprehensive
Income Attributable to Agree Realty Corporation
|
$
9,011
|
|
$
11,854
|
|
$
13,583
|
|
$
16,249
|
|
|
|
|
|
|
|
|
Weighted Average
Number of Common Shares Outstanding - Basic
|
22,186
|
|
17,539
|
|
21,316
|
|
17,458
|
Weighted Average
Number of Common Shares Outstanding - Diluted
|
22,265
|
|
17,587
|
|
21,385
|
|
17,511
|
Agree Realty
Corporation
|
Reconciliation of
Net Income to FFO and Adjusted FFO
|
($ in thousands,
except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three months
ended
June 30,
|
|
Six months
ended
June 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
Net
income
|
$
10,828
|
|
$
10,465
|
|
$
18,414
|
|
$
16,959
|
Depreciation of real
estate assets
|
3,595
|
|
2,922
|
|
6,957
|
|
5,478
|
Amortization of
leasing costs
|
24
|
|
29
|
|
47
|
|
58
|
Amortization of lease
intangibles
|
2,027
|
|
1,150
|
|
3,712
|
|
2,103
|
(Gain) loss on sale
of assets
|
(2,718)
|
|
(3,456)
|
|
(2,718)
|
|
(3,535)
|
Funds from
Operations
|
$
13,756
|
|
$
11,110
|
|
$
26,412
|
|
$
21,063
|
Straight-line accrued
rent
|
(656)
|
|
(608)
|
|
(1,305)
|
|
(1,206)
|
Deferred revenue
recognition
|
(116)
|
|
(116)
|
|
(232)
|
|
(232)
|
Stock based
compensation expense
|
601
|
|
521
|
|
1,309
|
|
1,045
|
Amortization of
financing costs
|
122
|
|
117
|
|
239
|
|
225
|
Non-real estate
depreciation
|
19
|
|
15
|
|
34
|
|
31
|
Debt extinguishment
costs
|
-
|
|
-
|
|
-
|
|
180
|
Adjusted Funds
from Operations
|
$
13,726
|
|
$
11,039
|
|
$
26,457
|
|
$
21,106
|
|
|
|
|
|
|
|
|
FFO per common
share - Basic
|
$
0.61
|
|
$
0.62
|
|
$
1.22
|
|
$
1.18
|
FFO per common
share - Diluted
|
$
0.61
|
|
$
0.62
|
|
$
1.22
|
|
$
1.18
|
|
|
|
|
|
|
|
|
Adjusted FFO per
common share - Basic
|
$
0.61
|
|
$
0.62
|
|
$
1.22
|
|
$
1.19
|
Adjusted FFO per
common share - Diluted
|
$
0.61
|
|
$
0.62
|
|
$
1.22
|
|
$
1.18
|
|
|
|
|
|
|
|
|
Weighted Average
Number of Common Shares and Units Outstanding - Basic
|
22,533
|
|
17,887
|
|
21,663
|
|
17,805
|
Weighted Average
Number of Common Shares and Units Outstanding - Diluted
|
22,613
|
|
17,935
|
|
21,733
|
|
17,859
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Information:
|
|
|
|
|
|
|
|
Scheduled principal
repayments
|
$
728
|
|
$
683
|
|
$
1,448
|
|
$
1,360
|
Capitalized
interest
|
6
|
|
2
|
|
13
|
|
3
|
Capitalized building
improvements
|
29
|
|
-
|
|
29
|
|
-
|
|
|
|
|
|
|
|
|
Non-GAAP Financial
Measures
FFO
The Company considers the non-GAAP measures of FFO and FFO per
share/unit)to be key supplemental measures of the Company's
performance and should be considered along with, but not as
alternatives to, net income or loss as a measure of the Company's
operating performance. Historical cost accounting for real estate
assets 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, most real
estate industry investors consider FFO to be helpful in evaluating
a real estate company's operations.
The White Paper on FFO approved by NAREIT in April 2002, as revised
in 2011, defines FFO as net income or loss (computed in accordance
with GAAP), excluding gains or losses from sales of properties and
items classified by GAAP as extraordinary, plus real estate-related
depreciation and amortization and impairment writedowns, and after
comparable adjustments for the Company's portion of these items
related to unconsolidated entities and joint ventures. The Company
computes FFO consistent with standards established by NAREIT, which
may not be comparable to FFO reported by other REITs that do not
define the term in accordance with the current NAREIT definition or
that interpret the current NAREIT definition differently than the
Company.
The Company believes that excluding the effect of extraordinary
items, real estate-related depreciation and amortization and
impairments, which are based on historical cost accounting and
which may be of limited significance in evaluating current
performance, can facilitate comparisons of operating performance
between periods and between REITs, even though FFO does not
represent an amount that accrues directly to common shareholders.
However, FFO may not be helpful when comparing the Company to
non-REITs.
FFO does not represent cash generated from operating activities as
determined by GAAP and should not be considered as alternatives to
net income or loss, cash flows from operations or any other
operating performance measure prescribed by GAAP. FFO is not a
measurement of the Company's liquidity, nor is FFO indicative of
funds available to fund the Company's cash needs, including its
ability to make cash distributions. These measurement does not
reflect cash expenditures for long-term assets and other items that
have been and will be incurred. FFO may include funds that may not
be available for management's discretionary use due to functional
requirements to conserve funds for capital expenditures, property
acquisitions, and other commitments and uncertainties. To
compensate for this, management considers the impact of these
excluded items to the extent they are material to operating
decisions or the evaluation of the Company's operating
performance.
Adjusted FFO
The Company presents adjusted FFO (including adjusted FFO per
share/unit), which adjusts for certain additional items including
straight-line accrued rent, deferred revenue recognition, stock
based compensation expense, non-real estate depreciation and debt
extinguishment costs and certain other items. The Company excludes
these items as it believes it allows for meaningful comparisons
with other REITs and between periods and is more indicative of the
ongoing performance of its assets. As with FFO, the Company's
calculation of adjusted FFO may be different from similar adjusted
measures calculated by other REITs.
Any differences a result of rounding.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/agree-realty-corporation-reports-second-quarter-2016-results-300303440.html
SOURCE Agree Realty Corporation