DEVELOP | ACQUIRE | PARTNER June 2020 Agree Realty Corporation - PowerPoint PPT Presentation

DEVELOP | ACQUIRE | PARTNER June 2020

Agree Realty Corporation Overview (NYSE: ADC) Net lease growth REIT focused on the acquisition and development of high-quality retail properties Our Company ▪ $4.3 billion (1) retail net lease REIT headquartered in Bloomfield Hills, Michigan ▪ 868 retail properties totaling approximately 16.3 million square feet in 46 states 61.0% investment grade tenants (2) and 9.8 years average remaining lease term ▪ ▪ Investment grade credit ratings of Baa2 from Moody’s and BBB from S&P 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 March 31, 2020, unless otherwise noted. (1) As of June 24, 2020. (2) As of May 29, 2020. 1

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

Recent Highlights Raised 2020 acquisition guidance to $700 million to $800 million (1) ✓ Received April, May and June rent payments from 91%, 88% and 88%, respectively, of our portfolio (2) ✓ $147.4 million of second quarter-to-date acquisition activity including six Walmart stores ✓ $16.6 million of second quarter-to-date disposition activity including six franchise restaurants ✓ Re-leased former Art Van Flagship store; recovered 100% of prior rents with a 20-year net lease ✓ $778.2 million of gross equity proceeds raised via the ATM program and two follow-on offerings (3) ✓ 0.7x Proforma Net Debt / Recurring EBITDA as of the end of Q1 2020 (3)(4) ✓ Received a BBB investment grade credit rating from S&P with a stable outlook ✓ Declared an increased quarterly dividend of $0.600 per share, a 5.3% year-over-year increase As of May 29, 2020, unless otherwise noted. (1) Reflects full-year 2020 acquisition guidance provided by the Company on April 20, 2020. (2) As of June 22, 2020. (3) As of April 21, 2020. 3 (4) Proforma for the settlement of the Company’s 2020 ATM forward equity offerings, March 2020 overnight offering and April 2 020 forward offering.

Agree Realty at March 31, 2020 Tenants Company Overview $ in millions Annualized Tenant / Concept Base Rent % of Total Share Price (1) $65.77 (5) (5) $16.9 7.5% 10.0 4.6% Equity Market $3.6 Billion Capitalization (1)(2) 8.2 3.8% 7.4 3.4% Property Count 868 properties 7.1 3.3% Top 3 Tenant 6.8 3.2% 14.7% Concentration 6.6 3.1% Net Debt to EBITDA 4.8x / 0.7x (3) 6.4 3.0% 5.9 2.7% Investment Grade % (4)(5) 61.0% 5.5 2.6% Team Members (1) 49 people 5.1 2.4% 4.9 2.3% Retail Sectors 4.7 2.2% Annualized $ in millions Tenant Sector Base Rent % of Total 4.7 2.2% Home Improvement $22.7 10.5% 4.5 2.1% Tire and Auto Service 17.7 8.2% Grocery Stores 14.9 6.9% 4.0 1.9% Off-Price Retail 13.5 6.3% Pharmacy 12.9 6.0% 3.8 1.8% Convenience Stores 12.8 5.9% 3.7 1.7% General Merchandise 12.6 5.8% Auto Parts 12.0 5.6% 3.5 1.6% Dollar Stores 10.3 4.8% Consumer Electronics 8.8 4.1% Other 96.3 44.6% Other 77.8 35.9% Total $216.0 100.0% Total $216.0 100.0% As of March 31, 2020, unless otherwise noted. (1) As of June 24, 2020. (2) Reflects shares and OP units outstanding multiplied by the closing price as of 6/24/2020. (3) As of April 21, 2020. Proforma for the settlement of the Company’s 2020 ATM forward equity offerings, March 2020 overnigh t offering and April 2020 forward offering. 4 (4) Refer to footnote 1 on slide 5 for the Company’s definition of Investment Grade. (5) As of May 29, 2020.

Strong Investment Grade Portfolio Best-in-class retailers with conservative balance sheets Retail Credit Type (% ABR) National Investment Grade (1) 61% Sub-Investment Not Rated Grade Super-Regional 21% 18% Franchise z As of May 29, 2020. Any differences are a result of rounding. (1) Based on ABR derived from tenants, or parent entities thereof, with an investment grade credit rating from S&P Global Ratin gs, Moody’s Investors Service, Fitch Ratings, 5 or the National Association of Insurance Commissioners.

National and Super-Regional Retailers Industry-leaders operating in e-commerce resistant sectors Retail Tenant Type (% ABR) National National 85% Super-Regional Franchise 12% Super-Regional 3% z As of March 31, 2020. Any differences are a result of rounding. 6

Ground Lease Portfolio Breakdown Fee simple ownership + significant tenant investment (1) Ground Lease Portfolio Overview Leading Tenants ▪ 66 properties ▪ 8.5% of total ADC portfolio ABR ▪ 10.6 years weighted-average lease term Credit Overview (% ABR) Top Ground Lease Tenants (% ABR) 19% Investment Grade (1) 16% 89% 9% 9% 7% WMT LOW Wawa HD Costco Sub-Investment Grade 1% As of March 31, 2020. 7 (1) Refer to footnote 1 on slide 5 for the Company’s definition of Investment Grade.

Leading, Pure-Play Retail Net Lease REIT Diversified portfolio of high-quality retail properties occupied by investment grade tenants under long-term leases Retail % of Total Portfolio Investment Grade Tenants 100.0% 60.0% 100% 100% 61% 80.0% 84% 50.0% 81% 48% 60.0% 65% 40.0% 59% 37% 40.0% 30.0% 20.0% 20.0% 23% 18% 0.0% 10.0% (1) (2) ADC NNN O SRC VER STOR (3) ADC O VER SRC NNN STOR Occupancy Weighted-Average Lease Term 14.0 12.0 yrs 100.0% 14.0 99.5% 99.4% 99.3% 11.0 yrs 99.0% 11.1 99.1% 98.8% 98.5% 10.0 yrs 98.0% 10.0 9.8 9.0 yrs 97.0% 9.2 8.3 8.0 yrs 96.0% STOR NNN SRC ADC O VER STOR SRC ADC VER NNN O ADC data as of March 31, 2020, unless otherwise noted. Peer data from first quarter 2020 supplementals, SEC filings, or earnings calls. (1) Excludes Office and Industrial, as disclosed. (2) Excludes Early Childhood Education, Career Education, Behavioral Health, Elementary and Secondary Schools, Lumber & Construction Materials Wholesalers, Wholesale Automobile Auction, Logistics, and All Other Service, as disclosed. 8 (3) As of May 29, 2020.

What Has ADC Been Investing In? ▪ 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 ▪ 10 out of 14 (or 71%) of the largest retailer bankruptcies since 2012 were at private equity-acquired chains (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: Pirate Equity; “How Wall Street Firms Are Pillaging American Retail” July 2019. 9

Limited Exposure to At-Risk Sectors Since January 1, 2018 Private % E-Commerce Recession Real Estate Sector Notable Tenants Equity Comments ABR (1) Resistance Resistance Attributes Change in Sponsorship Exposure (2) Private equity sponsorship, proliferation of low Health & Fitness 3.5% High Yes High Weak cost operators + single purpose boxes. 235 bps Single purpose boxes + online Movie Theaters 1.8% Low Moderate Limited Weak disruption = minimal exposure to leading operators. 75 bps Private equity sponsorship + Franchise pricing = 1.6% High Yes High Weak Restaurants (3) opportunistic dispositions of franchisees. 418 bps Discretionary nature = limited exposure to Entertainment 1.4% High Moderate Accelerating Moderate leading operator with Retail strong underlying real estate. 28 bps (1) As of March 31, 2020, unless otherwise noted. (2) Represents the change in the Company’s exposure, measured as the % of total ABR, from January 1, 2018 to March 31, 2020. 10 (3) As of May 29, 2020.

Ramping Investment Activity ADC has invested more than $3.2 billion (1) in high-quality retail net lease properties since 2010 Investment Activity $ in millions $16.6 $800.0 $700 to $32.4 $800 $700.0 $701.4 $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 $100.0 $0.0 (2) 2015 2016 2017 2018 2019 2020E Development & PCS (3) Acquisitions As of March 31, 2020, unless otherwise noted. (1) As of May 29, 2020. (2) Reflects full-year 2020 acquisition guidance provided by the Company on April 20, 2020. (3) Represents development and PCS activity, completed or commenced. 11