DEVELOP | ACQUIRE | PARTNER January 2019 Forward-Looking Statements - PowerPoint PPT Presentation

DEVELOP | ACQUIRE | PARTNER January 2019

Forward-Looking Statements Forward-Looking Statements This presentation may contain certain “forward -looking statements” made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. Forward-looking statements are generally identifiable by use of forward-looking terminology such as “may,” “will,” “should,” “potential,” “intend,” “expect,” “seek,” “anticipate,” “estimate,” “approximately,” “believe,” “could,” “project,” “predict,” “forecast,” “continue,” “assume,” “plan,” references to “outlook” or other similar words or expressions. Forward-looking statements are based on certain assumptions and can include future expectations, future plans and strategies, financial and operating projections and forecasts and other forward-looking information and estimates. These forward-looking statements are subject to various risks and uncertainties, many of which are beyond the Company’s control, which could cause actual results to differ materially from such statements. These risks and uncertainties are described in greater detail in the Company’s filings with the Securities and Exchange Commission, including, without limitation, the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 and in subsequent quarterly reports. Except as required by law, the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. For further information about the Company’s business and financial results, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of the Company’s SEC filings, including, but not limited to, its Annual Report on Form 10-K and Quarterly Reports on Company’s Form 10-Q, copies of which may be obtained at the Invest section of the website at www.agreerealty.com. All information in this presentation is as of January 17, 2019. The Company undertakes no duty to update the statements in this presentation to conform the statements to actual results or changes in the Company’s expectations. 1

Agree Realty Corporation (NYSE: ADC) Retail net lease REIT focused on growth through the acquisition and development of high-quality retail properties Our Company ▪ (1) $3.0 billion retail net lease REIT headquartered in Bloomfield Hills, MI and listed on the NYSE under ticker ADC ▪ (1) 645 retail properties totaling approximately 11.2 million square feet in 46 states ▪ (1) 51% investment grade tenants and 10.2 years average remaining lease term ▪ Investment grade credit rating of Baa2 with a stable outlook from Moody’s Our History ▪ 47-year operating history as a developer, owner and manager of retail properties ▪ IPO in 1994 to continue and expand business of predecessor company ▪ Formally launched acquisition platform in 2010 and Partner Capital Solutions (“PCS”) business in 2012 Our Business Plan ▪ Opportunistically expand and diversify our high-quality retail net lease portfolio through a refined and disciplined investment strategy ▪ Generate consistent and sustainable earnings growth ▪ Provide a reliable income stream through a growing dividend ▪ Maintain a conservative and flexible capital structure As of September 30, 2018, unless otherwise noted. (1) As of December 31, 2018. 2

2018 Highlights Consistent execution has led to enhanced shareholder value ▪ 225 retail net lease properties acquired in 2018 for a record $607.0 million ▪ 98-property sale-leaseback transaction with Sherwin-Williams closed for $142.2 million ▪ 16 development and PCS projects completed or under construction totaling $74.4 million ▪ 21 properties sold in 2018 for total gross proceeds of $67.6 million (1) ▪ Raised $181 million via our ATM program ▪ Declared a quarterly dividend of $0.555 per share, a 6.7% year-over-year increase Announced 2019 acquisition guidance of $350 million to $400 million As of December 31, 2018. 3 (1) Includes Meijer’s exercise of a purchase option totaling $3.9 million .

Investment Strategy

Scaling Three-Pronged Investment Strategy Leverage real estate acumen and three investment platforms to identify best risk-adjusted retail net lease opportunities ADC’s synergistic investment platforms adhere to the same core principles while pursuing opportunities along the full spectrum of net lease asset origination ▪ Bottoms-up underwriting => real estate and residuals matter ▪ 100% retail properties => superior real estate + longer term leases ▪ National and super-regional retailers => superior real estate + credit enhancement ▪ Emphasis on tenant real estate solutions => long-term relationships and repeat business Partner Capital Solutions ➢ “Inorganic” development ➢ Partner with private developers ➢ Provide capital and development expertise Development Acquisitions ➢ “Organic” development ➢ Acquire stabilized assets ➢ 47-year track record ➢ Sale-leasebacks and third party sellers ➢ Preferred developer status Site Land Land Entitlements Construction Delivery Sale selection negotiation purchase Retail Net Lease Real Estate “Lifecycle” 5

ADC’s Unique Dual Capabilities Emphasis on comprehensive real estate solutions drive multi-faceted partnerships DEVELOPMENT SALE-LEASEBACK ✓ Spearheading retailer ✓ Track record of execution expansion programs for over as acquirer and real estate four decades partner • • In-house expertise Ability to close quickly • • Superior access to capital Focus on core competencies • Transparency & credibility • Side-by-side growth 6

Track Record of Execution Record 2018 investment activity of approximately $680 million Investment Activity $ in millions $700.0 $74.4 $600.0 $607.0 $500.0 $400.0 $62.7 $38.0 $336.8 $300.0 $295.8 $14.9 $200.0 $220.1 $17.7 $147.5 $100.0 $28.4 $73.3 $0.0 2013 2014 2015 2016 2017 2018 Development & PCS (1) Acquisitions As of December 31, 2018. (1) Represents development and PCS activity, completed or commenced. 7

Accelerating Growth Established real estate capabilities and growing market presence driving increased investment opportunities Annualized Base Rent (“ABR”) # of Properties $ in millions 297 $141.7 645 600 $130.0 $119.2 500 $110.0 436 400 $94.3 $90.0 366 300 $70.0 $72.4 279 $56.5 200 $50.0 209 $45.1 130 100 $30.0 (1) 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 As of September 30, 2018, unless otherwise noted. (1) As of December 31, 2018. 8

Active Portfolio Management Our focus on real estate fundamentals guides non-core asset sales and capital recycling Total Dispositions 2010-2018: $229 million (1) $67.6M (1) Mauston, WI $45.8M Upland, CA Atlantic Beach, FL Apopka, FL $12.9M $29.7M Minnesota (3) $29.0M LA (1) & PA (1) Chippewa Commons North Lakeland Plaza Ocala, FL North Dakota (3) Chippewa Falls, WI MN (2) & ND (2) Lakeland, FL Petoskey Town Center Ferris Commons Macomb Township, MI Petoskey, MI Florida (2) Michigan (3) Big Rapids, MI Marshall Plaza Oscoda, MI East Lansing, MI Rancho Cordova, CA Wichita Falls, TX Marshall, MI Ironwood Commons Michigan (3) Springfield, IL Ironwood, MI Waynesboro, VA Port St. John, FL 2014 2015 2016 2017 2018 9 As of December 31, 2018. Graph is representative and does not include all dispositions. (1) Includes Meijer’s exercise of a purchase option totaling $3.9 million.

Portfolio Summary

Sherwin-Williams Sale-Leaseback Transaction Deal Overview $142.2 million purchase price 98-property portfolio Long-term NNN leases Closed December 28, 2018 Tenant Overview Global leader in the manufacturing, development & distribution of paint & coatings Investment-grade credit ratings of BBB (S&P), Baa3 (Moody’s) and BBB (Fitch) Strong Average 5-mile population: 180,000 Demographics Average 5-mile HH income: $72,000 Average traffics counts: 28,000 VPD Fungible Boxes Free-standing boxes averaging 5,800 square feet Geographic More than 25 states across the country Diversity As of December 31, 2018. 11

Portfolio Breakdown Top Tenants Walmart Lease Type (% ABR) $ in millions # of % of Rank Tenant / Concept Assets ABR (1) Total Net 1 24 $8.8 6.2% Lease 2 5 $5.6 3.9% 60% Ground 3 6 $5.1 3.6% Lease 4 12 $4.5 3.2% 40% 5 20 $4.3 3.1% 6 5 $4.2 3.0% 7 11 $3.4 2.4% ▪ Diversified portfolio comprised of Walmart Supercenter, Neighborhood Market and Roseville, MI Sam’s Club ▪ Two turnkey and three ground leases Brooklyn, OH ▪ High- performing Sam’s Club paying % rent Manassas, VA in Brooklyn, Ohio recently exercised five- year extension Hazard, KY ▪ Supercenter in Hazard, Kentucky built into side of mountain with limited competition Vero Beach, FL As of September 30, 2018. 12 (1) Based on GAAP annualized base rent.

High-Quality Retail Real Estate = Stronger Residual Values Manassas, VA ▪ $22 million transaction ▪ Credit Rating: S&P: AA / Moody’s: Aa2 ▪ Washington, DC MSA ▪ Strong demographics: ▪ 5-mile population of 174K ▪ 5-mile HH income of $100K ▪ Ground lease structure with reversionary interest in real estate improvements As of September 30, 2018. 13