Agree Realty Corporation
), a real estate investment trust (REIT), recently announced the
acquisition of a Harris Teeter Supermarket located in downtown
Charlotte, North Carolina. The company acquired the 18,000 square
feet store from Harris Teeter Inc, for approximately $3,000,000.
AGREE RLTY CORP (ADC): Free Stock Analysis
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HARRIS TEETER (HTSI): Free Stock Analysis
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Harris Teeter, Inc. is a wholly-owned subsidiary of
Harris Teeter Supermarkets, Inc.
). Currently, Harris Teeter operates a regional chain of
supermarkets in eight states mainly in southeastern and
mid-Atlantic U.S. and the District of Columbia. With the
acquisition of the Harris Teeter unit, Agree Realty expects to
enhance its portfolio quality, which in turn could be accretive
to earnings going forward.
Agree Realty is dynamically fulfilling its strategic goal of
repositioning its portfolio. It has divested assets that have
limited opportunities and is acquiring properties which have the
potential to generate higher returns. Also, the company focuses
on potential ground lease and built-to-suit opportunities for
retailers under long-term net leases, thereby providing them with
a consistent source of income.
In the recently completed third-quarter 2012, the company
acquired seven single tenant retail properties for roughly $22
million. The acquired properties are net leased to some
world-class tenants such as -
Goodyear Tire & Rubber Co.
Family Dollar Stores Inc.
). Currently, the company owns a portfolio of 98 properties,
situated in 25 states containing around 3.1 million square feet
of gross leasable space.
Agree Realty recently reported third-quarter 2012 adjusted FFO
(fund from operations) of 50 cents per share, beating the Zacks
Consensus Estimate by 2 cents.
We have a long-term Neutral recommendation on the stock. However,
it holds a short-term Zacks #2 Rank (Buy).
Note: FFO, a widely accepted and reported measure of the
performance of REITs, is derived by adding depreciation,
amortization and other non-cash expenses to net income.