Back to top

Analyst Blog

Farmington Hills, Michigan-based real estate investment trust (REIT), Agree Realty Corporation (ADC - Snapshot Report), recently added a Big Lots unit and a Dollar General Market unit in its portfolio for an aggregate price of $5.3 million. With these twin acquisitions, the company’s portfolio now exceeds a hundred properties.

The acquired 30,000 square foot Big Lots Inc. (BIG - Analyst Report) store is located in The Shoppes at Lakestone Commons. The shopping center in Fuquay-Varina town of North Carolina, also anchors a Kohl's Corp. (KSS - Analyst Report) department store.

On the other hand, the Dollar General Corporation (DG - Analyst Report) unit, which spans 20,834 square foot, is situated in State Street in Lyons, Georgia. The department store houses many world class brands such as Kellogg Company (K - Analyst Report), Hanesbrands Inc. (HBI - Analyst Report) and Unilever plc (UL - Analyst Report). As a matter of fact, both the acquired units have recently opened for business.

Agree Realty is actively repositioning its portfolio by divesting assets that have limited opportunities and acquiring properties which have the potential to generate higher returns. Last month, the company acquired a unit of Harris Teeter, Inc. – a wholly-owned subsidiary of Harris Teeter Supermarkets, Inc. – for approximately $3.0 million. The company has acquired 37 premium assets across 20 states for roughly $135 million, since the inception of its acquisition policy in 2010.

In addition, the company is also focused on potential ground lease and build-to-suit opportunities for retailers under long-term net leases, thereby guaranteeing a consistent source of income.  The company acquired seven single tenant retail properties in third-quarter 2012 for roughly $22 million. The acquired properties were net leased to some world-class tenants such as AutoZone Inc. (AZO - Analyst Report) and Family Dollar Stores Inc. (FDO - Analyst Report).

Agree Realty is primarily engaged in the ownership, management, acquisition and development of single tenant properties leased to industry leading retail tenants. Currently, it owns a portfolio of 101 properties, spanning 3.2 million square feet, located across 25 states.

We have a long-term Neutral recommendation on Agree Realty. However, it holds a short-term Zacks #2 Rank (Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.00 +3.09%
SANCHEZ ENE… SN 34.18 +2.67%
THE PANTRY… PTRY 21.02 +2.09%
INTEL CP INTC 35.15 +1.88%
CLAYTON WIL… CWEI 117.30 +1.78%