DEVELOP | ACQUIRE | PARTNER September 2019 Agree Realty Corporation - PowerPoint PPT Presentation

DEVELOP | ACQUIRE | PARTNER September 2019

Agree Realty Corporation Overview (NYSE: ADC) Net lease growth REIT focused on the acquisition and development of high-quality retail properties Our Company ▪ $4.1 billion (1) retail net lease REIT headquartered in Bloomfield Hills, Michigan ▪ 722 retail properties totaling approximately 13.1 million square feet in 46 states ▪ 54.2% investment grade tenants and 10.1 years average remaining lease term ▪ Investment grade credit rating of Baa2 with a stable outlook from Moody’s Our Business Plan: Rethinking Retail Net Lease ▪ Capitalize on distinct market positioning in the retail net lease space Focus on 21 st century industry-leading retailers through our three unique external growth platforms ▪ ▪ Leverage our real estate acumen and relationships to identify superior risk-adjusted opportunities ▪ Maintain a conservative and flexible capital structure that enables our growth trajectory ▪ Provide consistent, high-quality earnings growth and a well-covered, growing dividend As of June 30, 2019, unless otherwise noted. (1) As of September 6, 2019. 1

consistency [ kuh n -sis-tuh n -see ] noun steadfast adherence to the same principles, course, or form

Recent Highlights Raised 2019 acquisition guidance to $625 million to $675 million ✓ 31 retail net lease properties acquired in Q2 2019 for $176.1 million ✓ Four properties sold in Q2 2019 for gross proceeds of $17.3 million ✓ Nine development and PCS projects completed or ongoing in 1H 2019 totaling $29.6 million ✓ Increased Q2 2019 Core FFO per share 5.5% to $0.75 and AFFO per share 4.7% to $0.74 ✓ Declared quarterly dividend of $0.570 per share, a 5.6% year-over-year increase ✓ Increased 2019 disposition guidance to $50 million to $75 million ✓ Appointed Simon Leopold to the Company’s Board of Directors 3

Agree Realty Today Tenants Company Overview $ in millions Annualized Tenant / Concept Base Rent % of Total Share Price (1) $74.52 $10.0 5.6% 8.0 4.4% Equity Market $3.2 Billion 7.7 4.3% Capitalization (1)(2) 6.7 3.7% Property Count 722 properties 5.6 3.2% 5.5 3.0% Top 3 Tenant 14.3% Concentration 4.2 2.4% 4.1 2.3% Net Debt to EBITDA 4.4x / 3.2x (3) 4.1 2.3% Investment Grade % (4) 54.2% 3.7 2.1% 3.7 2.0% Team Members 39 people 3.6 2.0% Retail Sectors 3.4 1.9% Annualized $ in millions 3.4 1.9% Tenant Sector Base Rent % of Total 3.3 1.8% Home Improvement $17.9 10.0% Tire & Auto Service 14.9 8.3% 3.1 1.7% Pharmacy 12.7 7.1% 3.1 1.7% Off-Price Retail 12.0 6.7% Grocery Stores 10.7 6.0% 3.1 1.7% Convenience Stores 9.3 5.2% Auto Parts 8.4 4.7% 3.1 1.7% General Merchandise 7.8 4.3% 3.0 1.7% Health & Fitness 7.7 4.3% Farm & Rural Supply 6.6 3.7% Other 86.7 48.6% Other 71.1 39.7% Total $179.1 100.0% Total $179.1 100.0% As of June 30, 2019, unless otherwise noted. (1) As of September 6, 2019. (2) Reflects shares and OP units outstanding multiplied by the closing price as of 09/06/2019. (3) Proforma for the settlement of the Company’s April 2019 forward equity offering. 4 (4) Refer to footnote 1 on slide 21 for the Company’s definition of Investment Grade. Represents new additions to the C om pany’s top tenants and top sectors since January 1, 2016.

Agree Realty 2016 Tenants Company Overview $ in millions Annualized Share Price $33.99 Tenant / Concept Base Rent % of Total $12.3 17.2% Equity Market 3.9 5.5% $713 Million Capitalization (1) 2.5 3.4% 2.5 3.4% Property Count 278 properties 2.0 2.8% Top 3 Tenant 1.9 2.6% 26.1% Concentration 1.8 2.6% Net Debt to EBITDA ~5.0x 1.8 2.5% 1.8 2.5% Team Members 20 people 1.7 2.4% 1.7 2.4% Retail Sectors 1.5 2.1% Annualized $ in millions Tenant Sector Base Rent % of Total 1.4 2.0% Pharmacy $16.7 23.2% Restaurants – Quick Service 5.6 7.9% 1.2 1.7% General Merchandise 4.0 5.5% Apparel 3.9 5.4% 1.2 1.6% Grocery Stores 3.8 5.4% Warehouse Clubs 3.7 5.2% 1.2 1.6% Health & Fitness 3.6 5.0% Sporting Goods 3.1 4.4% 1.1 1.5% Specialty Retail 3.1 4.4% Other 30.2 42.2% Convenience Stores 2.6 3.6% Other 21.5 30.0% Total $71.7 100.0% Total $71.7 100.0% As of January 1, 2016. (1) Reflects shares and OP units outstanding multiplied by the closing price as of 12/31/2015. 5 Represents top tenants as of January 1, 2016 that are no longer among the Company’s top tenants as of June 30, 2019.

Total Shareholder Return ADC has outperformed its net lease peers on a short, medium and long-term basis Total Shareholder Return 219% 200% 208% 160% 120% 80% 79% 76% 65% 55% 48% 40% 36% 31% 24% 0% Last Twelve Months 2-Year 3-Year 4-Year 5-Year (2) ADC Peer Average (1) Per SNL as of August 30, 2019. (1) Includes National Retail Properties (NNN), Realty Income (O), Spirit Realty Capital (SRC), STORE Capital (STOR) and VEREIT (VER). 6 (2) Peer average excludes STORE Capital (STOR) as it was not public through all of 2014.

Investment Strategy

Creating Value Across the Real Estate Spectrum ADC works with leading retailers creating unique risk-adjusted opportunities DEVELOP | ACQUIRE | PARTNER Development Acquisition Blend & Extend ▪ 48-year track record ▪ Third-party sellers ▪ Leverage our retailer partnerships to negotiate ▪ Preferred developer status ▪ Select sale-leasebacks lease extensions 8

Investing in Retail Real Estate Today ▪ The retail landscape continues to dynamically evolve as market forces cause disruption and change ▪ To mitigate risk in a period of continued disruption, the Company adheres to a number of investment criteria, with a focus on four core principles: ▪ E-commerce resistance (omni-channel critical) ▪ Focus on leading operators in e-commerce resistant sectors or those that have matured in omni-channel structure ▪ Recession resistance ▪ Emphasize a balanced portfolio with exposure to counter-cyclical sectors and retailers with strong credit profiles ▪ Focus on avoiding private equity sponsorship ▪ Strong emphasis on leading operators with strong balance sheets and avoidance of private equity sponsored retailers ▪ 75% of retailers on Moody’s distressed list are private equity sponsored (1) ▪ The private equity model of over- leveraged acquisitions eliminates a retailer’s ability to invest in the business ▪ Strong real estate fundamentals & fungible buildings ▪ Protects against unforeseen changes to our top-down investment philosophy (1) Source: Retail Dive; ‘Which Private Equity - Owned Retailers Are Still At Risk” May 2019. 9

Top Sectors Overview Since January 1, 2018 % E-Commerce Recession Private Equity Real Estate Sector Top Tenants Comments ABR (1) Resistance Resistance Sponsorship Attributes % Investment Change in Activity (2) Exposure Risk mitigation through Home 10.0% 21.9% High No Limited Varies ground leases & small Improvement buildings. 534 bps High service Tire and 8.3% 12.8% High Yes Accelerating Moderate component. Focus on Auto Service leading operators. 281 bps ADC continuing to Pharmacy 7.1% (2.6%) High Yes Limited Strong reduce exposure to WBA. 523 bps Continued same-store Off-Price 6.7% 8.3% High Yes Limited Strong sales increases & share Retail gains. 133 bps Low margin business. U.S. at 2% online Grocery penetration versus 6% 6.0% 2.2% Moderate Yes Limited Moderate in Great Britain (3) . Stores Anticipated shakeout over next few years. 167 bps Focus on large format. Convenience F&B sales continue to 5.2% 6.6% High Yes Accelerating Strong Stores provide convenience and significant growth. 73 bps (1) As of June 30, 2019. (2) Represents the % of net investment activity (including dispositions) from January 1, 2018 through June 30, 2019; includes the Sherwin-Williams sale-leaseback transaction. 10 (3) Source: IGD Research 2018.

Top Sectors Overview Since January 1, 2018 % E-Commerce Recession Private Equity Real Estate Sector Top Tenants Comments ABR (1) Resistance Resistance Sponsorship Attributes % Investment Change in Activity (2) Exposure Age of US automobiles continues to increase. Auto Parts 4.7% 7.1% High Yes Limited Strong DIY and consumer accounts have strong barriers to entry. 105 bps Walmart continues to General 4.3% 6.6% Moderate Yes Limited Weak leverage store base to Merchandise drive BOPUS. 45 bps Private equity sponsorship, Health 4.3% 1.2% High Yes High Weak proliferation of low cost and Fitness operators + single purpose boxes. 149 bps Tractor Supply (NYSE: Farm and TSCO) continues to 3.7% 5.2% High No Limited Strong Rural Supply dominate this growing sector. 84 bps Private equity sponsorship + pricing = Restaurants – 3.6% 0.1% High Yes High Weak opportunistic Quick Service dispositions of franchisees. 154 bps (1) As of June 30, 2019. (2) Represents the % of net investment activity (including dispositions) from January 1, 2018 through June 30, 2019; includes the Sherwin-Williams sale-leaseback transaction. 11