Agree Realty (ADC) Announces Year-To-Date Update

Agree Realty Corporation (NYSE: ADC) (the "Company") today announced its progress on May rent collections, recent acquisition and disposition activities, an update on its former Art Van Flagship store, and a capital markets and balance sheet update.

May Rent Collections Update

As of May 29, 2020, the Company received May rent payments from 87% of its portfolio and entered into May deferral agreements with tenants representing approximately 4% of its portfolio. 100% of the Company's investment grade tenants paid May rent.

Acquisition & Disposition Update

Total acquisition activity in the second quarter through May 29, 2020 amounted to $147.4 million with six Walmart stores acquired comprising approximately 39% of acquisition capital deployed. Walmart has accounted for approximately 37% of the Company's year-to-date acquisition capital invested and remains the Company's top tenant at approximately 7.5% of annualized base rent. Approximately 87.9% of annualized base rents acquired year-to-date are derived from investment grade retail tenants, increasing the Company's exposure to investment grade retailers to 61.0% of annualized base rent as of May 29, 2020.

The Company sold seven properties quarter-to-date through May 29, 2020 for gross proceeds of approximately $16.6 million. Notable disposition activity included the sale of six franchise restaurants, further reducing the Company's franchise restaurant exposure to 1.6% of annualized base rent as of May 29, 2020.

Former Art Van Flagship Update

The Company has executed a new twenty-year net lease for its former Art Van flagship location in Canton, Michigan with an anticipated recovery rate of 100% of the previous rent. Rent is expected to commence during the latter half of the third quarter of 2020. This was the only Art Van furniture location in the Company's portfolio.

Capital Markets & Balance Sheet Update

On April 22, 2020, the Company closed an underwritten public offering of 6,166,666 shares of its common stock (the "April 2020 Forward Offering") in connection with a forward sale agreement in which the shares were sold to Cohen & Steers Capital Management, Inc. at a price of $60.00 per share.

On April 22, 2020, the Company settled its previously outstanding forward equity offerings and received approximately $267 million of net proceeds upon delivering 3,976,695 shares of the Company's common stock to effect settlement.

As of May 29, 2020, the Company had not received any proceeds from the sale of shares under the April 2020 Forward Offering and therefore has approximately $367 million in anticipated net proceeds available from the April 2020 Forward Offering, as well as approximately $148 million in unrestricted cash and full capacity on its undrawn $500 million unsecured revolving credit facility.

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