Agree Realty Corporation is a retail-focused low-debt REIT. It leases out space to investment-grade tenants on a triple net basis. Before you get put off by the word retail, it may be worth your time to learn a little bit more about Agree Realty Corporation. On the other hand, if you are looking for retail stocks to invest in as you believe that a turnaround is on the horizon, then you are at the right place. Agree Realty Corporation does not depend on just rent growth for its growth. It can also grow via acquisitions. The current climate in the wake of the pandemic may present exciting opportunities for such investments, which could lead to longer-term growth for the REIT. Some of the top tenants for Agree Realty Corporation include Walmart, Tractor Supply, Best Buy, Dollar General, and TJX.
Agree Realty Corporation Business
Agree Realty Corporation is very selective when it comes to acquisitions. It disclosed that it had reviewed deals worth $38 billion since 2018. Out of those, the REIT only completed $3 billion worth of deals. That represents a closing ratio of less than 8%. Investors will do well to track the deal review-to-closing ratio. Either Agree Realty Corporation has to review more deals or increase its closing ratio in order to boost growth. Agree Realty Corporation has about 120 ground leases. The weighted average lease term in that category is 12.5 years. The market likes to place a premium on ground leases which works out in favor of Agree Realty Corporation. The REIT is also known for its thought leadership, and it puts out white papers about ongoing trends in the industry. Agree Realty Corporation recognizes the trend towards online shopping and is working towards the ‘buy online pick up in store’ model. The company is a leader among REIT retail stocks.
Retail Stocks To Invest
Agree Realty Corporation can potentially mitigate the threat from e-commerce through the emerging trend of using physical stores as sorting and fulfillment centers. Top retail businesses like Walmart are using robotics and other technology to allow customers to buy online and pick up in-store. It is a decentralized model rather than the traditional e-commerce model.