Agree Realty Corporation was founded in the year 1971 by Richard Agree. It went public in 1994 on the New York Stock Exchange. Currently, the REIT has 1213 retail properties spanning 24.2 million square feet of space across 46 states. It is among the best retail stocks for long term investing. Why retail? The sector was one of the worst-hit during the pandemic. However, with the re-opening theme now poised to play out, retail stocks could be the ones that benefit disproportionately as they have been beaten down for a while. Agree Realty Corporation is one of the top retail REITs in the US. Income investors will appreciate the dividend payouts that REITs make. Agree Realty Corporation’s top clients come from the home improvement and grocery sectors. Both these sectors have performed reasonably well over the past few months.
More Business Information About Agree Realty
Agree Realty Corporation’s top 3 tenants account for 15% of the overall rental income. About 67% of the retailers that are tenants of Agree Realty Corporation have an investment-grade rating. The names include giants like Lowe’s, Home Depot, Walmart, Costco, Walgreens, Target, TJ Maxx, etc. So, the stability of the rental income is likely going to be high, a hallmark of the best retail stocks 2021. Around 86% of Agree Realty Corporation’s tenants are national chains, and there is a higher probability of them taking up space in multiple geographies with Agree Realty. One important metric in the REIT industry is the weighted-average lease term. It is the term of the lease that is still remaining across a REIT’s portfolio. The higher the number, the greater the rental visibility. For Agree Realty Corporation, the number is 12.5 years which is fairly high. Agree Realty Corporation is among the top retail stocks 2021.
Agree Realty Corporation’s longer-term growth strategy involves three strategies. These are acquisitions, further development, and partner capital solutions. The REIT is also mindful of its leverage position. Currently, its net debt to recurring EBITDA ratio is 4.9X.