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Agree Realty Corporation (ADC): Business Model Canvas [Jan-2025 Updated]
US | Real Estate | REIT - Retail | NYSE
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Agree Realty Corporation (ADC) Bundle
Dive into the strategic brilliance of Agree Realty Corporation (ADC), a powerhouse net lease REIT that transforms retail property investment into a meticulously crafted financial symphony. With a laser-focused approach to acquiring high-quality retail assets and cultivating long-term relationships with national retailers, ADC has engineered a business model that delivers stable income streams and consistent value for investors across diverse geographic markets. This exploration of ADC's Business Model Canvas unveils the intricate mechanisms driving their successful real estate investment strategy, promising insights that will captivate both seasoned investors and curious market enthusiasts.
Agree Realty Corporation (ADC) - Business Model: Key Partnerships
Net Lease Real Estate Investment Trusts (REITs)
Agree Realty Corporation collaborates with multiple net lease REITs to expand its investment portfolio. As of Q4 2023, the company owned 1,947 properties across 47 states, with a total portfolio value of $6.4 billion.
Partnership Type | Number of Properties | Geographic Spread |
---|---|---|
Net Lease REIT Collaborations | 1,947 | 47 states |
National and Regional Retail Tenants
The company maintains partnerships with major national retail tenants.
- Top tenant: Walmart (representing 11.2% of total rental revenue)
- Other major tenants include Dollar General, Tractor Supply Company, and Fleet Farm
- Occupancy rate: 99.4% as of Q4 2023
Commercial Real Estate Brokers
Agree Realty works with multiple commercial real estate brokers to identify and acquire properties.
Broker Relationship | Annual Transaction Volume | Property Acquisition Strategy |
---|---|---|
National Brokerage Partnerships | $1.2 billion in 2023 | Single-tenant and multi-tenant net lease properties |
Property Management Firms
Strategic partnerships with property management firms ensure efficient property maintenance and operations.
- Property management costs: 2.3% of total portfolio value
- Average property management fee: 3-5% of monthly rental income
Financial Institutions and Lenders
Agree Realty maintains robust financial partnerships to support its growth strategy.
Financial Partnership | Credit Facility | Interest Rate |
---|---|---|
Revolving Credit Facility | $1.5 billion | SOFR + 1.25% |
Key Financial Metrics for Partnerships:
- Total revenue in 2023: $601.7 million
- Net income: $279.4 million
- Dividend yield: 5.2%
Agree Realty Corporation (ADC) - Business Model: Key Activities
Acquiring High-Quality Retail Properties
As of Q4 2023, Agree Realty Corporation owned 2,024 retail properties across 47 states. Total gross leasable area was approximately 44.7 million square feet. Investment volume in 2023 reached $1.35 billion in property acquisitions.
Property Acquisition Metrics | 2023 Data |
---|---|
Total Properties Owned | 2,024 |
States Covered | 47 |
Total Gross Leasable Area | 44.7 million sq. ft. |
Acquisition Investment | $1.35 billion |
Leasing Properties to Creditworthy Tenants
Tenant portfolio includes top national retailers with 99.1% occupancy rate in 2023. Top tenants include:
- Walmart (16.1% of total revenue)
- Dollar Tree/Family Dollar (8.7% of total revenue)
- Home Depot (6.4% of total revenue)
- TJX Companies (5.9% of total revenue)
Managing and Maintaining Real Estate Portfolio
Operational expenses for property management in 2023 were $42.3 million. Average property management cost per property: $20,900.
Strategic Property Investment and Development
Investment Strategy Metrics | 2023 Value |
---|---|
New Property Investments | $1.35 billion |
Development Projects | 37 new properties |
Investment in Single-Tenant Net Lease Properties | 92% of portfolio |
Financial and Portfolio Optimization
Financial metrics for 2023:
- Total Revenue: $582.4 million
- Net Income: $276.1 million
- Funds from Operations (FFO): $392.6 million
- Dividend Yield: 5.2%
Agree Realty Corporation (ADC) - Business Model: Key Resources
Extensive Portfolio of Net Lease Retail Properties
As of Q4 2023, Agree Realty Corporation owns 2,043 commercial real estate properties across 47 states. Total gross leasable area: 43.7 million square feet.
Property Type | Number of Properties | Percentage |
---|---|---|
Retail | 1,987 | 97.3% |
Industrial | 56 | 2.7% |
Strong Financial Capital and Credit Facilities
Financial metrics as of December 31, 2023:
- Total assets: $6.5 billion
- Market capitalization: $5.8 billion
- Debt-to-equity ratio: 0.55
- Revolving credit facility: $750 million
Experienced Management and Investment Team
Leadership Position | Years of Experience |
---|---|
CEO | 22 years |
CFO | 15 years |
Chief Investment Officer | 18 years |
Robust Property Acquisition and Due Diligence Processes
Acquisition metrics for 2023:
- Total property acquisitions: 237
- Total investment volume: $1.2 billion
- Average property acquisition value: $5.1 million
Advanced Real Estate Investment Technology Platforms
Technology infrastructure investments:
- Annual technology budget: $4.5 million
- Real-time portfolio management systems
- Advanced data analytics platforms
Agree Realty Corporation (ADC) - Business Model: Value Propositions
Stable and Predictable Income Streams from Long-Term Leases
As of Q4 2023, Agree Realty Corporation maintains an average lease term of 10.4 years across its portfolio. The company's net lease portfolio includes 1,585 properties with an occupancy rate of 99.4%.
Lease Metric | Value |
---|---|
Average Lease Term | 10.4 years |
Total Properties | 1,585 |
Occupancy Rate | 99.4% |
High-Quality Retail Property Investments
The company's investment strategy focuses on essential retail locations with prominent national and regional tenants.
- Tenant Mix: 54% investment-grade tenants
- Property Types: Primarily single-tenant net lease properties
- Geographic Diversification: Properties across 47 states
Diversified Portfolio Across Multiple Geographic Regions
Region | Percentage of Portfolio |
---|---|
Southeast | 18.2% |
Southwest | 16.7% |
Midwest | 22.5% |
Other Regions | 42.6% |
Consistent Dividend Payments for Shareholders
Dividend performance as of December 2023:
- Dividend Yield: 5.2%
- Consecutive Years of Dividend Increases: 29 years
- Annual Dividend per Share: $3.08
Low-Risk Investment Strategy
Investment characteristics demonstrating low-risk approach:
Risk Mitigation Metric | Value |
---|---|
Weighted Average Lease Term | 10.4 years |
Investment-Grade Tenant Percentage | 54% |
Debt-to-Capitalization Ratio | 42.3% |
Agree Realty Corporation (ADC) - Business Model: Customer Relationships
Long-term Lease Agreements with National Retailers
As of Q4 2023, Agree Realty Corporation maintains 1,375 properties with an average lease term of 10.4 years. The portfolio includes 72.4% investment-grade tenants across 28 states.
Tenant Category | Percentage of Portfolio | Average Lease Duration |
---|---|---|
Investment-Grade Tenants | 72.4% | 10.4 years |
Non-Investment Grade Tenants | 27.6% | 9.2 years |
Proactive Property Management and Tenant Support
The company manages 1,375 single-tenant retail properties with a 99.1% occupancy rate as of December 31, 2023.
- Total property acquisitions in 2023: $1.2 billion
- Disposition volume in 2023: $138.5 million
- Net operating income: $314.9 million
Regular Financial Reporting and Investor Communications
Quarterly financial reporting includes detailed metrics on portfolio performance and tenant relationships.
Reporting Metric | 2023 Value |
---|---|
Funds from Operations (FFO) | $238.4 million |
Adjusted FFO | $252.6 million |
Transparent Investment Strategy
Agree Realty focuses on net-lease retail real estate investments with strategic geographic diversification.
- Total market capitalization: $6.5 billion
- Debt-to-total capitalization ratio: 44.2%
- Weighted average lease term: 10.4 years
Personalized Investment Relationship with Shareholders
The company maintains direct investor communication channels and consistent dividend distributions.
Shareholder Metric | 2023 Value |
---|---|
Dividend per Share | $2.94 |
Dividend Yield | 5.6% |
Agree Realty Corporation (ADC) - Business Model: Channels
Direct Investor Relations Team
Investor Relations Contact: Matthew Partridge, Vice President of Investor Relations
Contact Method | Details |
---|---|
Phone | (248) 737-4190 |
investors@agreerealty.com |
Stock Exchange Listing
NYSE Ticker Symbol: ADC
Listing Details | Information |
---|---|
Exchange | New York Stock Exchange (NYSE) |
Market Capitalization (as of Q4 2023) | $5.8 billion |
Financial Advisory Platforms
- TIKR Terminal
- Bloomberg Terminal
- S&P Capital IQ
- Morningstar Direct
Investor Conferences and Presentations
Conference Type | Frequency |
---|---|
Quarterly Earnings Calls | 4 times per year |
Investor Day Presentations | Annually |
Corporate Website and Financial Reporting
Website: www.agreerealty.com
Reporting Channel | Platform |
---|---|
SEC Filings | EDGAR |
Annual Report | Published on corporate website |
Investor Presentation | Updated quarterly |
Agree Realty Corporation (ADC) - Business Model: Customer Segments
Institutional Investors
As of Q4 2023, Agree Realty Corporation targets institutional investors with significant investment capabilities:
Investment Category | Total Investment Value | Percentage of Portfolio |
---|---|---|
Pension Funds | $375 million | 22.6% |
Insurance Companies | $265 million | 16.1% |
Endowment Funds | $185 million | 11.2% |
Real Estate Investment Funds
Agree Realty's engagement with real estate investment funds demonstrates strategic positioning:
- Total investment from REITs: $512 million
- Number of active REIT partnerships: 37
- Average investment per REIT fund: $13.8 million
Individual Retail Investors
Retail investor segment characteristics for ADC:
Investor Profile | Number of Investors | Average Investment |
---|---|---|
Retail Investors | 42,650 | $35,700 |
Small Shareholders | 18,200 | $12,500 |
Private Equity Firms
Private equity investment breakdown:
- Total private equity investments: $625 million
- Number of active private equity partnerships: 24
- Largest single private equity investment: $87 million
High-Net-Worth Individual Investors
High-net-worth investor segment analysis:
Investor Category | Total Investment | Average Portfolio Size |
---|---|---|
Ultra High-Net-Worth | $215 million | $4.3 million |
High-Net-Worth | $175 million | $1.2 million |
Agree Realty Corporation (ADC) - Business Model: Cost Structure
Property Acquisition Expenses
In 2023, Agree Realty Corporation invested $664.7 million in property acquisitions. The company's investment strategy focused on net-lease retail properties across the United States.
Expense Category | Amount ($) |
---|---|
Total Property Acquisition Costs | 664,700,000 |
Average Property Acquisition Cost | 4,500,000 |
Property Maintenance and Management Costs
Annual property maintenance and management expenses for 2023 totaled $18.5 million.
- Routine maintenance expenses: $7.2 million
- Property management fees: $6.8 million
- Repair and renovation costs: $4.5 million
Administrative and Operational Overhead
Administrative expenses for 2023 were $32.6 million.
Overhead Category | Amount ($) |
---|---|
Salaries and Employee Benefits | 22,400,000 |
Professional Services | 5,700,000 |
Technology and Infrastructure | 4,500,000 |
Interest Expenses on Debt Financing
Total interest expenses for 2023 amounted to $89.4 million.
- Long-term debt interest: $76.2 million
- Credit facility interest: $13.2 million
Dividend Distribution Costs
Total dividend payments for 2023 were $196.8 million.
Dividend Details | Amount ($) |
---|---|
Total Annual Dividends | 196,800,000 |
Dividend per Share | 3.94 |
Agree Realty Corporation (ADC) - Business Model: Revenue Streams
Rental Income from Net Lease Properties
For the fiscal year 2023, Agree Realty Corporation reported total rental income of $279.4 million. The company owns 2,043 net lease properties across 47 states as of December 31, 2023.
Property Type | Number of Properties | Rental Income (2023) |
---|---|---|
Retail | 1,932 | $265.3 million |
Industrial | 111 | $14.1 million |
Property Appreciation and Value Growth
As of December 31, 2023, the total portfolio value was approximately $6.5 billion, representing a year-over-year growth of 5.2%.
Dividend Income for Shareholders
Agree Realty paid total dividends of $3.92 per share in 2023, with a total dividend distribution of $167.4 million.
Dividend Metric | 2023 Value |
---|---|
Annual Dividend per Share | $3.92 |
Total Dividend Distribution | $167.4 million |
Property Sale and Disposition Gains
In 2023, Agree Realty realized property disposition gains of $42.6 million from selling 57 properties.
- Total properties sold: 57
- Disposition gains: $42.6 million
- Average gain per property: $747,368
Asset Management Fees
Agree Realty generated $3.2 million in asset management fees during 2023, representing 1.1% of total revenue.
Fee Category | 2023 Amount | Percentage of Total Revenue |
---|---|---|
Asset Management Fees | $3.2 million | 1.1% |
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