As part of its efforts to enhance asset quality,
Agree Realty Corporation
) acquired two net lease properties for around $6.5 million and
disposed the Ironwood Commons shopping center for $5.0
In particular, the acquisitions involved a 43,000 square foot
property in Anderson, S.C. The property is leased to
) and Michaels. The other property spans 8,500 square foot and is
positioned in Tulsa, Okla. This property is leased to
The Sherwin-Williams Company
). On the other hand, the non-core asset - Ironwood Commons -
spans 192,018 square foot and is positioned in Ironwood,
We expect such opportunistic deals to boost Agree Realty's
strong tenant base and prove accretive to the company's earnings
in the future. The disposition of non-core assets provides the
wherewithal to invest in strategic acquisitions, which go a long
way in enhancing the top-line growth of the company.
Moreover, we believe that the improving economy and increasing
consumer confidence will drive the demand for retail goods going
forward and therefore, the retail REITs stand well to gain from
it. Amid this environment, the portfolio repositioning moves are
Agree Realty specializes in acquiring and developing
properties net leased to reputed retail companies. At present,
the company owns and operates a portfolio of 134 properties,
located in 34 states, comprising roughly 3.8 million square feet
of gross leasable space.
Agree Realty currently carries a Zacks Rank #3 (Hold). A
better-ranked stock in the same sector includes
Simon Property Group Inc.
), which carries a Zacks Rank #2 (Buy).
AGREE RLTY CORP (ADC): Free Stock Analysis
PETSMART INC (PETM): Free Stock Analysis
SHERWIN WILLIAM (SHW): Free Stock Analysis
SIMON PROPERTY (SPG): Free Stock Analysis
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