Agree Realty Corporation (
- a real estate investment trust (REIT) - announced that it has
acquired four Applebee's International Inc.'s restaurants along
with one store of
Advance Auto Parts Inc. (
in late December 2012. The average purchase price of the
properties came in at approximately $10.1 million.
With the abovementioned transaction, the company's total
acquisitions in 2012 reached roughly $81.5 million - more than
double the total value of the 2011 acquisitions. The company
acquired properties spanning approximately 400,000 square feet
located in 15 states. The properties are spread along 13 retail
sectors and have an average lease term of 14.5 years. Roughly 68%
of the annualized base rents, generated from these 2012
acquisitions, are from investment-grade retailers.
Applebee's International Inc. is a wholly-owned restaurant chain
DineEquity, Inc. (
. The acquired restaurants are located in Harlingen, Wichita
Falls and Florida regions. All the properties have a new 20-year
lease and comprise fixed annual rental increases.
Advance Auto Parts is the second-largest automotive replacement
parts and accessories retailer in the U.S., based on revenues and
store count. The acquired Advance Auto unit is situated in
Virginia at an outlet of a
Wal-Mart Stores Inc.
Through this strategic initiative, Agree Realty expects to
enhance its portfolio quality, which in turn could be accretive
to its earnings going forward. In addition, it aims to retain
high-end tenants through long-term lease deals, thereby
guaranteeing a consistent source of income.
Lately, Agree Realty has been actively repositioning its
portfolio by divesting assets that have limited opportunities and
acquiring properties, which have the potential to generate higher
returns. Over the last two months, the company acquired many
premium assets. In November, it acquired a $3.0 million worth of
unit from Harris Teeter - a wholly-owned subsidiary of
Harris Teeter Supermarkets, Inc. (
. In late December, agree Realty acquired two premium assets - LA
Fitness property in Illinois and an AutoZone store in Minneapolis
- for approximately $11.6 million.
We presently have a long-term 'Neutral' recommendation on Agree
Realty. Also, it holds a Zacks Rank #3 (Hold).
ADVANCE AUTO PT (AAP): Free Stock Analysis
AGREE RLTY CORP (ADC): Free Stock Analysis
DINEEQUITY INC (DIN): Free Stock Analysis
HARRIS TEETER (HTSI): Free Stock Analysis
WAL-MART STORES (WMT): Free Stock Analysis
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