Agree Realty Corporation
), a retail real estate investment trust (REIT), shelled out $6
million to acquire 4 single tenant assets recently. Leased to
well-known retailers for an average lease period of approximately
ten years, these properties offer scope for Agree Realty to
augment its top line.
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Among the acquisitions by Agree Realty, two of the properties are
in Madisonville, TX and Forest, MS. These are leased to
Tractor Supply Company
), which commands a large chain of retail stores. Among the other
two properties, one is occupied by
Mattress Firm Holding Corp.
) in Baton Rouge, LA and the other by
) in Sun Valley, NV.
On an acquisition spree in recent times, in June Agree Realty
disclosed $22.4 million in acquisitions of 2 single-tenant
properties - one occupied by Wal-Mart Stores and the other by
AutoZone. The renovated Wal-Mart asset that operates as Sam's
Club is based in Brooklyn, OH and spans 147,771 square feet. The
second property is situated in South Kedzie Road in Chicago, IL.
and encompasses 7,840 square feet. To date, the Sam's Club buyout
is the largest acquisition by Agree Realty at around $21 million.
Agree Realty has also been focusing on strengthening ties with
its present tenants. In May, the company acquired 2 single tenant
assets leased to Petsmart and Starbucks for a combined purchase
price of about $5.4 million. In Apr 2013, the company announced
the extension of the existing lease deal with Kmart at 2 retail
properties in Michigan and Kentucky, respectively.
We expect such opportunistic deals to boost Agree Realty's strong
tenant base and its relationship with existing tenants and prove
accretive to the company's earnings in the future.
Agree Realty specializes in the acquisition and development of
single tenant properties net leased to national and regional
retail companies in the United States. At present, the company
owns a portfolio of 124 properties, located in 33 states,
comprising roughly 3.6 million square feet of gross leasable
Agree Realty currently carries a Zacks Rank #3 (Hold).