Agree Realty Corporation (ADC - Snapshot Report) announced that it has acquired a retail property, which is currently leased to National Tire & Battery in Madison, Alabama, for a total consideration of $2.3 million. The term of the lease is 25 years.
The company is currently focusing on potential ground lease and built-to-suit opportunities for retailers under long-term net leases, thereby providing them with a consistent source of income. The company’s strategic move is expected to enhance and diversify its portfolio of industry leading retailers.
Agree Realty reported third-quarter 2011 FFO (funds from operations) of 55 cents per share compared with 60 cents per share reported in the year-earlier quarter. Funds from operations, 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.
Based in Farmington Hills, Michigan, Agree Realty is primarily engaged in the ownership, management, acquisition and development of single tenant properties leased to industry leading retail tenants. Agree Realty owns and operates a portfolio of 88 properties, located in 21 states spanning 3.6 million square feet of leasable space.
The company primarily emphasizes on strong value added development opportunities and strategic acquisitions, which will continue to maximize shareholder value.
Agree Realty currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. Currently, we are also maintaining a long-term Neutral recommendation on the stock. One of its competitors, Kimco Realty Corporation (KIM - Analyst Report) also holds a Zacks #3 Rank.