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Agree Realty Inks Deal to Expand & Amend Credit Facility

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Agree Realty Corp. (ADC - Free Report) inked a deal to amend and restate its senior unsecured credit facility. Per the agreement, the facility will be raised to $350 million. This includes an unsecured revolving credit facility worth $250 million and extensions of two unsecured term loans worth $65 million and $35 million, respectively.

The improved financing further strengthens the balance sheet position of Bloomfield Hills, MI-based retail real estate investment trust (“REIT”). The improved terms and conditions of the credit facility and extension of the maturities of the term loans will augment its capacity to execute its operating strategies.

The rate of interest on the revolving credit facility has been set at LIBOR plus 130–195 basis points. The maturity date of the revolving facility has been set in Jan 2021 and it has the option of one-year extension. Rate of unsecured term loans has been fixed at LIBOR plus 165–235 basis points, and will mature in Jan 2024.

Currently, Agree Realty has a Zacks Rank #3 (Hold). Over the past seven days, its current-quarter funds from operation (FFO) estimates remained unchanged at 65 cents.

Some better-ranked stocks in the same space include EPR Properties (EPR - Free Report) , Realty Income Corporation (O - Free Report) and Retail Properties of America, Inc. (RPAI - Free Report) . All these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

EPR Properties’ current quarter estimates have moved up 1.6% over the past seven days to $1.24.

Current quarter estimate for Retail Properties of America rose 4.2% over the past seven days to 25 cents.

Current quarter estimates for Realty Income remained unchanged at 75 cents over the seven days.

Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income. All EPS numbers presented in this write up represent FFO per share.

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