Agree Realty Corporation Reports Third Quarter 2017 Results
INCREASES 2017 ACQUISITION GUIDANCE TO $300 MILLION TO $325 MILLION
BLOOMFIELD HILLS, Mich., Oct. 23, 2017 /PRNewswire/ -- Agree Realty Corporation (NYSE: ADC) (the "Company") today announced results for the quarter ended September 30, 2017. All per share amounts included herein are on a diluted per common share basis unless otherwise stated.
Third Quarter 2017 Financial and Operating Highlights:
- Invested $69.0 million in 19 retail net lease properties
- Commenced two new development and Partner Capital Solutions ("PCS") projects
- Increased rental revenue 22.6% to $27.3 million
- Net Income per share attributable to the Company decreased 30.4% to $0.42
- Net Income attributable to the Company decreased 14.7% to $12.2 million
- Increased Funds from Operations ("FFO") per share 1.6% to $0.69
- Increased FFO 23.2% to $20.0 million
- Increased Adjusted Funds from Operations ("AFFO") per share 4.1% to $0.69
- Increased AFFO 26.2% to $19.9 million
- Declared a quarterly dividend of $0.505 per share, a 5.2% increase over the dividend per share declared in the third quarter of 2016
- Maintained balance sheet strength; net-debt-to recurring EBITDA of 4.7 times
Financial Results
Total Rental Revenue
Total rental revenue, which includes minimum rents and percentage rents, for the three months ended September 30, 2017 increased 22.6% to $27.3 million, compared to total rental revenue of $22.3 million for the comparable period in 2016.
Total rental revenue for the nine months ended September 30, 2017 increased 26.0% to $76.7 million, compared to total rental revenue of $60.9 million for the comparable period in 2016.
Net Income
Net Income attributable to the Company for the three months ended September 30, 2017 decreased 14.7% to $12.2 million, compared to $14.3 million for the comparable period in 2016. Net Income per share attributable to the Company for the three months ended September 30, 2017 decreased 30.4% to $0.42, compared to $0.61 per share for the comparable period in 2016. The decrease in Net Income is primarily attributable to a decrease in gain on sale of assets relative to the prior period.
Net Income attributable to the Company for the nine months ended September 30, 2017 increased 28.5% to $41.6 million, compared to $32.4 million for the comparable period in 2016. Net Income per share attributable to the Company for the nine months ended September 30, 2017 increased 4.2% to $1.52, compared to $1.46 per share for the comparable period in 2016.
Funds from Operations
FFO for the three months ended September 30, 2017 increased 23.2% to $20.0 million, compared to FFO of $16.2 million for the comparable period in 2016. FFO per share for the three months ended September 30, 2017 increased 1.6% to $0.69, compared to FFO per share of $0.68 for the comparable period in 2016.
FFO for the nine months ended September 30, 2017 increased 29.0% to $55.0 million, compared to FFO of $42.6 million for the comparable period in 2016. FFO per share for the nine months ended September 30, 2017 increased 5.7% to $2.00, compared to FFO per share of $1.90 for the comparable period in 2016.
Adjusted Funds from Operations
AFFO for the three months ended September 30, 2017 increased 26.2% to $19.9 million, compared to AFFO of $15.8 million for the comparable period in 2016. AFFO per share for the three months ended September 30, 2017 increased 4.1% to $0.69, compared to AFFO per share of $0.66 for the comparable period in 2016.
AFFO for the nine months ended September 30, 2017 increased 29.8% to $54.8 million, compared to AFFO of $42.2 million for the comparable period in 2016. AFFO per share for the nine months ended September 30, 2017 increased 6.4% to $2.00, compared to AFFO per share of $1.88 for the comparable period in 2016.
Dividend
The Company paid a cash dividend of $0.505 per share on October 13, 2017 to stockholders of record on September 29, 2017, a 5.2% increase over the $0.48 quarterly dividend declared in the third quarter of 2016. The quarterly dividend represents payout ratios of approximately 73.4% of FFO per share and 73.6% of AFFO per share, respectively.
CEO Comments
"We are pleased with our performance as our leading portfolio of net lease retail assets remains extremely stable at near full occupancy as we continue to execute our operating strategy and focus on tenants and real estate of the highest quality. Our unique investment platforms and flexible balance sheet have positioned us to increase 2017 acquisition guidance to $300 million to $325 million," said Joey Agree, President & Chief Executive Officer of Agree Realty Corporation.
Portfolio Update
As of September 30, 2017, the Company'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.
The 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.
The following table provides a summary of the Company's portfolio as of September 30, 2017:
Property Type |
Number of |
Annualized |
Percent of |
Percent |
Weighted |
||||
Retail Net Lease |
382 |
$101,763 |
90.3% |
41.0% |
10.5 yrs |
||||
Retail Net Lease Ground Leases |
40 |
9,288 |
8.2% |
84.6% |
12.1 yrs |
||||
Total Retail Net Lease |
422 |
$111,051 |
98.5% |
45.4% |
10.6 yrs |
||||
Total Portfolio |
425 |
$112,792 |
100.0% |
45.2% |
10.5 yrs |
Annualized base rent is in thousands; any differences are the result of rounding. |
|
(1) |
Represents annualized straight-line rent as of September 30, 2017. |
(2) |
Reflects tenants, or parent entities thereof, with investment grade credit ratings from Standard & Poor's, Moody's, Fitch and/or NAIC. |
Acquisitions
Total acquisition volume for the third quarter of 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 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.
For the nine months ended September 30, 2017, total acquisition volume was approximately $238.8 million and included 61 high-quality retail net lease assets. The properties are located in 25 states and leased to 45 diverse tenants who operate in 21 retail sectors. The properties were acquired at a weighted-average capitalization rate of 7.6% and carried a weighted-average remaining lease term of approximately 11.9 years.
Dispositions
During the quarter, the Company 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. The Company is maintaining its disposition guidance of $30 million to $50 million for the current year.
Development and Partner Capital Solutions
The Company commenced two new development and PCS projects during the quarter, with anticipated costs totaling approximately $11.5 million. The projects include the Company's first project with Burger King franchisee TOMS King in North Ridgeville, Ohio, and the Company's third Camping World in Grand Rapids, Michigan.
During the quarter, Orchard Supply Hardware (Lowe's Companies, Inc.) commenced rent in Boynton Beach, Florida. Total project costs were approximately $3.9 million. Orchard Supply Hardware had previously executed a 15-year net lease.
Construction continued during the quarter 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.
In the first nine months of 2017, the Company had nine development or PCS projects completed or under construction. Anticipated total costs are approximately $57.3 million and include the following completed or commenced projects:
Tenant |
Location |
Lease |
Lease |
Actual or |
Status |
|||||
Camping World |
Tyler, TX |
Build-to-Suit |
20 Years |
Q1 2017 |
Completed |
|||||
Burger King(1) |
Heber, UT |
Build-to-Suit |
20 Years |
Q1 2017 |
Completed |
|||||
Camping World |
Georgetown, KY |
Build-to-Suit |
20 Years |
Q2 2017 |
Completed |
|||||
Orchard Supply |
Boynton Beach, FL |
Build-to-Suit |
15 Years |
Q3 2017 |
Completed |
|||||
Mister Car Wash |
Urbandale, IA |
Build-to-Suit |
20 years |
Q4 2017 |
Under Construction |
|||||
Mister Car Wash |
Bernalillo, NM |
Build-to-Suit |
20 years |
Q4 2017 |
Under Construction |
|||||
Art Van Furniture |
Canton, MI |
Build-to-Suit |
20 years |
Q1 2018 |
Under Construction |
|||||
Burger King(2) |
North Ridgeville, OH |
Build-to-Suit |
20 years |
Q1 2018 |
Under Construction |
|||||
Camping World |
Grand Rapids, MI |
Build-to-Suit |
20 years |
Q2 2018 |
Under Construction |
(1) |
Franchise restaurant operated by Meridian Restaurants Unlimited, LC. |
(2) |
Franchise restaurant operated by TOMS King, LLC. |
Leasing
During the third quarter, the Company 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.
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 September 30, 2017:
Tenant |
Annualized |
Percent of Annualized |
||
Walgreens |
$9,568 |
8.5% |
||
Walmart |
4,224 |
3.7% |
||
Lowe's |
4,215 |
3.7% |
||
LA Fitness |
3,713 |
3.3% |
||
CVS |
2,889 |
2.6% |
||
Wawa |
2,664 |
2.4% |
||
Mister Car Wash |
2,580 |
2.3% |
||
Smart & Final |
2,475 |
2.2% |
||
Dollar General |
2,415 |
2.1% |
||
Tractor Supply |
2,179 |
1.9% |
||
Hobby Lobby |
2,176 |
1.9% |
||
Dave & Buster's |
2,058 |
1.8% |
||
Academy Sports |
1,982 |
1.8% |
||
Dollar Tree |
1,939 |
1.7% |
||
Burger King(2) |
1,916 |
1.7% |
||
Rite Aid |
1,886 |
1.7% |
||
24 Hour Fitness |
1,759 |
1.6% |
||
BJ's Wholesale |
1,709 |
1.5% |
||
Other(3) |
60,445 |
53.6% |
||
Total Portfolio |
$112,792 |
100.0% |
Annualized base rent is in thousands; any differences are the result of rounding. |
|
(1) |
Represents annualized straight-line rent as of September 30, 2017. |
(2) |
Franchise restaurants operated by Meridian Restaurants Unlimited, LC. |
(3) |
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 September 30, 2017:
Sector |
Annualized |
Percent of Annualized |
||
Pharmacy |
$14,933 |
13.2% |
||
Grocery Stores |
8,524 |
7.6% |
||
Restaurants - Quick Service |
6,726 |
6.0% |
||
Health and Fitness |
6,427 |
5.7% |
||
Tire and Auto Service |
6,164 |
5.5% |
||
Home Improvement |
5,551 |
4.9% |
||
Convenience Stores |
4,795 |
4.3% |
||
General Merchandise |
4,643 |
4.1% |
||
Specialty Retail |
4,261 |
3.8% |
||
Off-Price Retail |
4,013 |
3.6% |
||
Auto Parts |
3,762 |
3.3% |
||
Warehouse Clubs |
3,749 |
3.3% |
||
Crafts and Novelties |
3,521 |
3.1% |
||
Farm and Rural Supply |
3,361 |
3.0% |
||
Sporting Goods |
3,171 |
2.8% |
||
Dollar Stores |
3,145 |
2.8% |
||
Health Services |
3,066 |
2.7% |
||
Theaters |
2,978 |
2.6% |
||
Other(2) |
20,002 |
17.7% |
||
Total Portfolio |
$112,792 |
100.0% |
Annualized base rent is in thousands; any differences are the result of rounding. |
|
(1) |
Represents annualized straight-line rent as of September 30, 2017. |
(2) |
Includes sectors generating less than 2.5% of annualized base rent. |
Geographic Diversification
The following table presents annualized base rents for all states that represent 2.5% or greater of the Company's total annualized base rent as of September 30, 2017:
State |
Annualized |
Percent of Annualized |
||
Michigan |
$14,018 |
12.4% |
||
Texas |
9,937 |
8.8% |
||
Florida |
8,669 |
7.7% |
||
Illinois |
7,849 |
7.0% |
||
Ohio |
6,817 |
6.0% |
||
Pennsylvania |
4,646 |
4.1% |
||
California |
3,697 |
3.3% |
||
Kentucky |
3,640 |
3.2% |
||
Louisiana |
3,606 |
3.2% |
||
Mississippi |
3,283 |
2.9% |
||
Wisconsin |
3,258 |
2.9% |
||
Missouri |
3,099 |
2.7% |
||
Kansas |
2,979 |
2.6% |
||
Georgia |
2,859 |
2.5% |
||
Other(2) |
34,435 |
30.7% |
||
Total Portfolio |
$112,792 |
100.0% |
Annualized base rent is in thousands; any differences are the result of rounding. |
|
(1) |
Represents annualized straight-line rent as of September 30, 2017. |
(2) |
Includes states 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 September 30, 2017, assuming no tenants exercise renewal options:
Year |
Leases |
Annualized |
Percent of |
Gross |
Percent of Gross |
||||
2017 |
0 |
$0 |
0.0% |
0 |
0.0% |
||||
2018 |
11 |
1,549 |
1.4% |
279 |
3.4% |
||||
2019 |
13 |
4,125 |
3.7% |
286 |
3.5% |
||||
2020 |
18 |
2,552 |
2.3% |
220 |
2.7% |
||||
2021 |
27 |
5,456 |
4.8% |
330 |
4.0% |
||||
2022 |
24 |
4,307 |
3.8% |
394 |
4.8% |
||||
2023 |
36 |
6,250 |
5.5% |
597 |
7.2% |
||||
2024 |
36 |
9,285 |
8.2% |
907 |
11.0% |
||||
2025 |
37 |
7,309 |
6.5% |
556 |
6.7% |
||||
2026 |
45 |
6,372 |
5.6% |
637 |
7.7% |
||||
Thereafter |
236 |
65,587 |
58.2% |
4,057 |
49.0% |
||||
Total Portfolio |
483 |
$112,792 |
100.0% |
8,263 |
100.0% |
Annualized base rent and gross leasable area (square feet) are in thousands; any differences are the result of rounding. |
|
(1) |
Represents annualized straight-line rent as of September 30, 2017. |
Capital Markets and Balance Sheet
Capital Markets
During the three months ended September 30, 2017, the Company 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.
Also within the quarter, the Company completed a private placement of $100 million principal amount of senior unsecured notes. The notes have a 12-year term, maturing on September 20, 2029, priced at fixed interest rate of 4.19%. The all-in pricing represented 165 basis points above the 12-year interpolated U.S. Treasury yield curve at the time of pricing.
Balance Sheet
As of September 30, 2017, the Company'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%. 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 months ended September 30, 2017, the Company's fully diluted weighted-average shares outstanding were 28.7 million. The basic weighted-average shares outstanding for the three months ended September 30, 2017 were 28.6 million.
For the three months ended September 30, 2017, the Company's fully diluted weighted-average shares and units outstanding were 29.0 million. The basic weighted-average shares and units outstanding for the three months ended September 30, 2017 were 28.9 million.
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 September 30, 2017, there were 347,619 operating partnership units outstanding and the Company held a 98.8% interest in the operating partnership.
2017 Outlook
The Company's outlook for acquisition volume in 2017 is being increased to a range of $300 million to $325 million of high-quality retail net lease properties. The Company's acquisition guidance, which assumes continued growth in economic activity, moderate interest rate growth, positive business trends and other significant assumptions, is being increased from a previous range of $250 million to $275 million. The Company's disposition guidance for 2017 remains between $30 million and $50 million.
Conference Call/Webcast
The Company will host its quarterly analyst and investor conference call on Tuesday, October 24, 2017 at 9:00 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. As of September 30, 2017, the Company owned and operated a portfolio of 425 properties, located in 43 states and containing approximately 8.3 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, 2016 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 October 23, 2017. 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 share and per-share data) |
|||
September 30, 2017 |
December 31, 2016 |
||
Assets: |
(Unaudited) |
||
Real Estate Investments: |
|||
Land |
$ 371,047 |
$ 309,687 |
|
Buildings |
820,138 |
703,506 |
|
Accumulated depreciation |
(80,356) |
(69,696) |
|
Property under development |
10,197 |
6,764 |
|
Net real estate investments |
1,121,026 |
950,261 |
|
Real estate held for sale, net |
9,003 |
- |
|
Cash and cash equivalents |
25,510 |
33,395 |
|
Cash held in escrows |
1,779 |
- |
|
Accounts receivable - tenants, net of allowance of $142 and $50 for |
15,634 |
11,535 |
|
Credit facility finance costs, net of accumulated amortization of $332 and |
1,275 |
1,552 |
|
Leasing costs, net of accumulated amortization of $772 and $677 at |
1,601 |
1,227 |
|
Lease intangibles, net of accumulated amortization of $36,875 and |
184,920 |
139,871 |
|
Interest rate swaps |
1,232 |
1,409 |
|
Other assets |
4,993 |
2,722 |
|
Total Assets |
$ 1,366,973 |
$ 1,141,972 |
|
Liabilities: |
|||
Mortgage notes payable, net |
$ 67,458 |
$ 69,067 |
|
Unsecured term loans, net |
158,305 |
158,679 |
|
Senior unsecured notes, net |
259,112 |
159,176 |
|
Unsecured revolving credit facility |
- |
14,000 |
|
Dividends and distributions payable |
14,930 |
13,124 |
|
Deferred revenue |
1,452 |
1,823 |
|
Accrued interest payable |
2,759 |
2,210 |
|
Accounts payable and accrued expenses: |
|||
Capital expenditures |
145 |
677 |
|
Operating |
7,381 |
4,866 |
|
Lease intangibles, net of accumulated amortization of $10,246 and |
30,529 |
30,047 |
|
Interest rate swaps |
1,284 |
1,994 |
|
Deferred income taxes |
705 |
705 |
|
Tenant deposits |
96 |
94 |
|
Total Liabilities |
544,156 |
456,462 |
|
Equity: |
|||
Common stock, $.0001 par value, 45,000,000 shares authorized, |
3 |
3 |
|
Preferred stock, $.0001 par value per share, 4,000,000 shares authorized |
|||
Series A junior participating preferred stock, $.0001 par value, 200,000 |
- |
- |
|
Additional paid-in capital |
849,442 |
712,069 |
|
Dividends in excess of net income |
(29,136) |
(28,558) |
|
Accumulated other comprehensive income (loss) |
(10) |
(536) |
|
Equity - Agree Realty Corporation |
820,299 |
682,978 |
|
Non-controlling interest |
2,518 |
2,532 |
|
Total Equity |
822,817 |
685,510 |
|
Total Liabilities and Equity |
$ 1,366,973 |
$ 1,141,972 |
Agree Realty Corporation |
|||||||
Consolidated Statements of Operations and Comprehensive Income |
|||||||
($ in thousands, except share and per share-data) |
|||||||
(Unaudited) |
|||||||
Three months ended |
Nine months ended |
||||||
2017 |
2016 |
2017 |
2016 |
||||
Revenues |
|||||||
Minimum rents |
$ 27,325 |
$ 22,279 |
$ 76,500 |
$ 60,682 |
|||
Percentage rents |
- |
7 |
212 |
197 |
|||
Operating cost reimbursement |
2,791 |
1,845 |
8,016 |
5,368 |
|||
Other income |
271 |
30 |
299 |
(18) |
|||
Total Revenues |
30,387 |
24,161 |
85,027 |
66,229 |
|||
Operating Expenses |
|||||||
Real estate taxes |
2,149 |
1,473 |
5,988 |
4,035 |
|||
Property operating expenses |
931 |
169 |
2,641 |
1,669 |
|||
Land lease payments |
163 |
163 |
490 |
490 |
|||
General and administrative |
2,491 |
2,020 |
7,665 |
6,107 |
|||
Depreciation and amortization |
8,228 |
6,151 |
22,956 |
16,901 |
|||
Total Operating Expenses |
13,962 |
9,976 |
39,740 |
29,202 |
|||
Income from Operations |
16,425 |
14,185 |
45,287 |
37,027 |
|||
Other (Expense) Income |
|||||||
Interest expense, net |
(4,666) |
(4,091) |
(13,213) |
(11,236) |
|||
Gain on sale of assets, net |
524 |
4,415 |
10,045 |
7,133 |
|||
Loss on debt extinguishment |
- |
(33) |
- |
(33) |
|||
Net Income |
12,283 |
14,476 |
42,119 |
32,891 |
|||
Less Net Income attributable to non-controlling interest |
118 |
213 |
501 |
506 |
|||
Net Income Attributable to Agree Realty Corporation |
$ 12,165 |
$ 14,263 |
$ 41,618 |
$ 32,385 |
|||
Net Income Per Share Attributable to Agree Realty Corporation |
|||||||
Basic |
$ 0.42 |
$ 0.61 |
$ 1.53 |
$ 1.47 |
|||
Diluted |
$ 0.42 |
$ 0.61 |
$ 1.52 |
$ 1.46 |
|||
Other Comprehensive Income |
|||||||
Net Income |
$ 12,283 |
$ 14,476 |
$ 42,119 |
$ 32,891 |
|||
Other Comprehensive Income (Loss) - Gain (Loss) on Interest Rate Swaps |
203 |
1,378 |
533 |
(3,236) |
|||
Total Comprehensive Income |
12,486 |
15,854 |
42,652 |
29,655 |
|||
Comprehensive Income Attributable to Non-Controlling Interest |
(149) |
(229) |
(509) |
(456) |
|||
Comprehensive Income Attributable to Agree Realty Corporation |
$ 12,337 |
$ 15,625 |
$ 42,143 |
$ 29,199 |
|||
Weighted Average Number of Common Shares Outstanding - Basic |
28,573,022 |
23,454,083 |
26,988,589 |
22,034,389 |
|||
Weighted Average Number of Common Shares Outstanding - Diluted |
28,656,684 |
23,563,331 |
27,069,352 |
22,127,329 |
Agree Realty Corporation |
|||||||
Reconciliation of Net Income to FFO and Adjusted FFO |
|||||||
($ in thousands, except share and per-share data) |
|||||||
(Unaudited) |
|||||||
Three months ended |
Nine months ended |
||||||
2017 |
2016 |
2017 |
2016 |
||||
Net Income |
$ 12,283 |
$ 14,476 |
$ 42,119 |
$ 32,891 |
|||
Depreciation of real estate assets |
5,101 |
3,947 |
14,286 |
10,904 |
|||
Amortization of leasing costs |
40 |
38 |
120 |
85 |
|||
Amortization of lease intangibles |
3,059 |
2,148 |
8,470 |
5,860 |
|||
(Gain) loss on sale of assets, net |
(524) |
(4,415) |
(10,045) |
(7,133) |
|||
Funds from Operations |
$ 19,959 |
$ 16,194 |
$ 54,950 |
$ 42,607 |
|||
Straight-line accrued rent |
(860) |
(857) |
(2,545) |
(2,162) |
|||
Deferred revenue recognition |
- |
(309) |
- |
(541) |
|||
Stock based compensation expense |
622 |
555 |
1,898 |
1,864 |
|||
Amortization of financing costs |
142 |
122 |
426 |
361 |
|||
Non-real estate depreciation |
28 |
19 |
80 |
53 |
|||
Debt extinguishment costs |
- |
33 |
- |
33 |
|||
Adjusted Funds from Operations |
$ 19,891 |
$ 15,757 |
$ 54,809 |
$ 42,215 |
|||
Funds from Operations per common share - Basic |
$ 0.69 |
$ 0.68 |
$ 2.01 |
$ 1.90 |
|||
Funds from Operations per common share - Diluted |
$ 0.69 |
$ 0.68 |
$ 2.00 |
$ 1.90 |
|||
Adjusted Funds from Operations per common share - Basic |
$ 0.69 |
$ 0.66 |
$ 2.00 |
$ 1.89 |
|||
Adjusted Funds from Operations per common share - Diluted |
$ 0.69 |
$ 0.66 |
$ 2.00 |
$ 1.88 |
|||
Weighted Average Number of Common Shares and Units Outstanding - Basic |
28,920,641 |
23,801,702 |
27,336,208 |
22,382,007 |
|||
Weighted Average Number of Common Shares and Units Outstanding - Diluted |
29,004,303 |
23,910,950 |
27,416,971 |
22,474,948 |
|||
Supplemental Information: |
|||||||
Scheduled principal repayments |
$ 797 |
$ 748 |
$ 2,343 |
$ 2,196 |
|||
Capitalized interest |
143 |
14 |
297 |
27 |
|||
Capitalized building improvements |
34 |
376 |
76 |
405 |
|||
Non-GAAP Financial Measures |
SOURCE Agree Realty Corporation
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