Agree Realty Corporation (ADC - Free Report) , a real estate investment trust (REIT), recently announced the extension of the existing lease deal with Kmart at 2 retail properties – Central Michigan Commons in Mich. and Capital Plaza in Ky. Kmart is one of the operational arms of Sears Holdings Corporation .
Per the deal, Kmart exercised its 5-year lease extension option at both the properties of Agree Realty. Kmart’s store in the Central Michigan Commons property spans 80,399 square feet. The extended lease for the Mt. Pleasant-based store is scheduled to expire on Aug 31, 2018. On the other hand, Kmart occupies 80,192 square feet of space at the Capital Plaza store. The extended lease for the Frankfort-based store will expire on Sep 30, 2018.
Notably, as of Dec 31, 2012, these lease extension options represent 54% of Agree Realty’s gross leasable area and 33% of annualized base rents for leases scheduled for expiration in 2013. The lease extension transaction is expected to boost Agree Realty’s strong tenant base and its relationship with the existing tenants. Moreover, it will likely prove accretive to the company’s earnings going forward.
Agree Realty is primarily engaged in the ownership, development, acquisition, and management of retail properties, which are primarily leased to national and regional retail companies in the United States. Currently, the company owns a portfolio of 113 properties, located in 30 states comprising roughly 3.3 million square feet of gross leasable space.
Agree Realty currently carries a Zacks Rank #2 (Buy). Other REITs that are also performing well include Simon Property Group Inc. (SPG - Free Report) and Regency Centers Corporation (REG - Free Report) , both carrying a Zacks Rank #2.