Agree Realty Corporation is a REIT focused on retail properties. Before you get spooked by the word retail, it may be a good idea to understand a bit more about what Agree Realty Corporation does. Agree Realty Corporation specialized in triple-net retail leases. Triple-net means that the tenants of Agree Realty pay for maintenance, improvements, and repairs while Agree Realty Corporation owns the land and the building that houses the tenants. About 68% of Agree Realty Corporation’s retail portfolio is investment grade. Besides, even though retail went through a horrible phase over the past 12-18 months, Agree Realty Corporation has received 99% of rents during the past 10 months or so. The only problem tenant sectors for the company are movie theatres and fitness centers. However, those problem areas may become less intense going forward as the economy opens up. So, if you are looking to buy retail stocks today, then Agree Realty Corporation might be worth analyzing.
Agree Realty Corporation Tenant Mix
Agree Realty Corporation has a well-diversified mix of tenants in its portfolio. The grocery segment is at the top, accounting for more than 10% of the overall tenant mix. Home Improvement comes in at second with 9.5% while auto and tire service is third at 8%. Convenience stores make up 7.3% of the tenant mix while general merchandise accounts for 6.8% and completes the top 5 tenant sectors for Agree Realty Corporation. As you would guess, these top 5 sectors aren’t the worst hit and have been recovering from the pandemic. So, the future outlook for Agree Realty Corporation may not be as pessimistic as one would imagine when one hears the word retail. Agree Realty Corporation could be among the top retail stocks for 2021.
Agree Realty Corporation’s last trading price as of 21st September 2021 was $69.63. The stock was down 6% over the preceding month. However, it was up 8.4% on a 1-year basis and the dividend yield on 21st September 2021 was 3.74%.