R NE | PART RE OP | ACQUI L VE DE Sa fe Ha rb o r This - - PDF document

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R NE | PART RE OP | ACQUI L VE DE Sa fe Ha rb o r This presentation contains certain statements that are the Companys and Managements hopes, intentions, beliefs, expectations, or projections of the future and might be considered

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DE VE L OP | ACQUI RE | PART NE R

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This presentation contains certain statements that are the Company’s and Management’s hopes, intentions, beliefs, expectations, or projections of the future and might be considered forward-looking statements under Federal Securities laws. Prospective investors are cautioned that any such forward- looking statements are not guarantees of future performance and involve risks and uncertainties. The Company’s actual future results may differ significantly from the matters discussed in these forward- looking statements and we may not release revisions to these forward-looking statements to reflect changes after we’ve made the statements. Factors and risks that could cause actual results to differ materially from expectations are disclosed from time to time in greater detail in the company’s filings with the SEC including, but not limited to, the Company’s report on Form 10-K, as well as Company press releases.

Sa fe Ha rb o r

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Our Company

  • $1.0 billion retail net lease REIT headquartered in Bloomfield Hills, MI and listed on the NYSE under ticker ADC
  • 279 retail properties totaling approximately 5.2 million square feet in 41 states
  • 51.4% investment grade tenants and 11.4 years average remaining lease term

Our History

  • Founded in 1971 as developer, owner and manager of retail properties
  • IPO in 1994 to continue and expand business of predecessor company
  • Formally launched an acquisition platform in 2010 and Joint Venture Capital Solutions (“JVCS”) 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 dividends per stream of income through a growing dividend
  • Maintain a conservative and flexible capital structure

Retail net lease growth company focused on the acquisition and development of high-quality retail properties

As of January 13, 2016.

Ag re e Re a lty Co rpo ra tio n (NYSE : ADC)

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Acquired 73 assets for an aggregate purchase price of $220 million in 2015

  • Weighted-average cap rate of 8.0% and weighted-average remaining lease term of 12.2 years
  • Leading brands and retailers operating in e-commerce resistant and experiential retail sectors
  • Provided 2016 acquisition guidance of $175 - $200 million of retail net lease properties

Commenced three development/Joint Venture Capital projects

  • Cash & Carry Smart Food Service - Salem, Oregon
  • Wawa - Orlando, Florida
  • Hobby Lobby - Springfield, Ohio
  • Announced Joint Venture Partnership with leading Burger King operator for up to 10 store

Strategically disposed of eight assets for gross proceeds of $29.0 million in 2015

  • Including North Lakeland Plaza, Ferris Commons, and Marshall Plaza

Increased Q3 FFO per share by 10.9% and AFFO per share by 7.1% Expanded access to capital markets

  • Completed inaugural debt private placement in May 2015 – $100 million, 11-year term, 4.21% interest rate
  • Launched first at-the-market (ATM) equity offering program in May 2015 – $100 million

Enhancing our portfolio and creating shareholder value through consistent execution

Re c e nt Hig hlig hts

As of January 13, 2016.

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Por tfolio Summar y

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Ac c e le ra ting Gro wth

Annualized Base Rent (“ABR”) # of Properties

73 81 87 109 130 209 279

40 80 120 160 200 240 280 2009 2010 2011 2012 2013 2014 2015

Established real estate capabilities and growing market presence driving increased investment opportunities

$34.3 $36.4 $34.0 $38.1 $45.1 $56.5 $72.4

$25.0 $35.0 $45.0 $55.0 $65.0 $75.0 2009 2010 2011 2012 2013 2014 Current $ millions

As of January 13, 2016.

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2010 2011 2012 2013 2014 2015

Ac tive Asse t Ma na g e me nt

Focus on real estate fundamentals guides non-core asset sales and capital recycling

Total Dispositions 2010-2015: $87.0M

As of January 13, 2016.

Santa Barbara, CA Aventura, FL Marion Oaks, FL Tulsa, OK Norman, OK Ann Arbor, MI

$14.4M $8.3M

Columbus, OH Columbus, OH Plymouth Commons Shawano, WI Shawano Plaza Charlevoix, MI Charlevoix Commons Petoskey, MI Petoskey Town Center Ironwood, MI Ironwood Commons Ypsilanti, MI

$15.9M

Big Rapids, MI Ferris Commons Marshall, MI Marshall Plaza Chippewa Falls, WI Chippewa Commons East Lansing, MI Waynesboro, VA Lakeland, FL North Lakeland Plaza

$5.5M $12.9M $29.0M

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Po rtfo lio T ra nsfo rma tio n

Top 3 Tenant Concentration (% ABR) Retail Sector Exposure Geographic Diversification

Disciplined strategy has led to increased portfolio diversification and improved quality of rental income

70.0% 25.8% 0.0% 20.0% 40.0% 60.0% 80.0% 1/1/2010 Current

98%

2%

Retail Net Lease Shopping Centers 71% 29% 1/1/2010 (73 properties) Current (279 properties) Shopping Centers Retail Net Lease

Property Type (% ABR)

1/1/2010 (16 states) Current (41 states) +

Pharmacy

Bookstores

General Merchandise

Casual Dining

Financial Services

Auto Parts

Pharmacy

QSRs

Health & Fitness

Grocery Stores

Sporting Goods

Warehouse Clubs

Apparel

Convenience Stores

Casual Dining

Specialty Retail

Home Improvement

Theater

Auto Parts

Financial Services

Auto Service

Healthcare

Crafts & Novelties

Dollar Stores

Pet Supplies

General Merchandise

Discount Stores

Home Furnishings

Consumer Electronics

Entertainment Retail 1/1/2010 Current

(Walgreens, Borders, Kmart) (Walgreens, Wal-Mart, Wawa) 6% Tenant Ground Leases 9% Tenant Ground Leases As of January 13, 2016.

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L e a ding , Pure -Pla y Re ta il Ne t L e a se RE I T

Investment Grade Tenants Retail % of Total Portfolio

100.0% 100.0% 91.7% 79.2% 61.4% 58.5%

0.0% 25.0% 50.0% 75.0% 100.0% ADC NNN SRC O VEREIT STOR

Peer data from third quarter supplemental or company SEC filings. (1) Excludes Medical/Other Office, Education and Manufacturing, as disclosed. (2) Excludes Office and Industrial and Distribution, as disclosed. (3) Excludes Industrial, Early Childhood Education Centers, Colleges and Professional Schools and All Other Service Industries, as disclosed.

Weighted-Average Lease Term Occupancy

Diversified portfolio of high-quality retail properties occupied by superior credit tenants under long term leases

99.8% 99.5% 99.1% 99.0% 98.5% 98.3%

96.0% 97.0% 98.0% 99.0% 100.0% STOR ADC NNN O SRC VEREIT

51.4% 44.0% 43.5%

35.0% 40.0% 45.0% 50.0% 55.0% ADC O VEREIT NNN SRC STOR Undisclosed Undisclosed Undisclosed

11.5 11.4 11.1 10.8 10.1

9.0 yrs 10.0 yrs 11.0 yrs 12.0 yrs 13.0 yrs STOR NNN ADC VEREIT SRC O 15.0

(1) (3) (2)

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Investment Str ategy

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ADC Development

  • “Organic” development
  • 40 year track record
  • Preferred developer status

ADC Acquisitions

  • Acquire stabilized assets
  • Sale-leasebacks and third

party sellers

ADC Joint Venture Capital

  • “Inorganic” development
  • Partner with private developers
  • Provide capital and development expertise

Site selection Entitlements Land purchase Construction Sale Land negotiation Delivery

Retail Net Lease Real Estate “Lifecycle”

Uniq ue Re a l E sta te I nve stme nt Stra te g y

Leverage real estate acumen and naturally overlapping investment platforms to identify best risk-adjusted retail net lease opportunities

ADC’s three investment platforms adhere to the same 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
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Na tio na l a nd Supe r-Re g io na l Re ta ile rs

77%

13% 10%

National

Super-Regional Franchise

Industry leading brands and retailers

  • perating in e-commerce resistant sectors

Retail Tenant Type (% ABR)

z z z

As of January 13, 2016.

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E mpha sis o n T e na nt Re a l E sta te So lutio ns

Unique, dual capabilities drive opportunistic value-add partnerships with retailers nationwide

 Spearheading retailer expansion programs for over 3 decades

  • In-house expertise
  • Superior access to capital
  • Transparency & credibility

 Track record of execution as acquirer and real estate partner

  • Ability to close quickly
  • Focus on core

competencies

  • Side-by-side growth

DEVELOPMENT SALE-LEASEBACK

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Investment Activity

T ra c k Re c o rd o f E xe c utio n

$36.8 $38.6 $81.5 $73.3 $147.5 $220.0 $14.1 $28.4 $17.7 $15.0

$0.0 $50.0 $100.0 $150.0 $200.0 $250.0 2010 2011 2012 2013 2014 2015

Acquisitions Development / JVCS

$ millions

Since 2010, ADC has invested over $677.1 million in high quality retail net lease properties

As of January 13, 2016.

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F inanc ial Over view

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$66.8 $25.0 $5.6 $35.0 $65.0 $100.0 $28.6 $32.2 $95.8 $76.8 $92.5

$0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 $160.0 $180.0 $200.0 2010 2011 2012 2013 2014 2015 Secured Debt Unsecured Debt Common Equity

$55.0 $85.0 $85.0 $150.0 $150.0 $50.0 $50.0 $50.0 $100.0 $100.0

1 2 3 4 5 6 7 $0.0 $25.0 $50.0 $75.0 $100.0 $125.0 $150.0 $175.0 $200.0 $225.0 $250.0 $275.0 2010 2011 2012 2013 2014 2015 Capacity Accordion Lenders

De mo nstra te d Ac c e ss to Ca pita l

(1) Includes mortgage debt assumed in connection with certain property acquisitions. (2) Includes common equity raised through the Company’s At-the-Market (“ATM”) offering through January 13, 2016.

Expanding relationships and new sources

  • f capital support portfolio growth objectives

Revolving Line of Credit Capital Markets Activity

$ millions $ millions

$85.0

# Lenders

As of January 13, 2016

(1) (2)

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Equity Market Capitalization $670M Total Capitalization $1.0B Total Debt to Total Market Capitalization 32% Interest Coverage 4.4x Net Debt / Adjusted EBITDA 4.8x

Ca pita l Struc ture , F ina nc ia l Ra tio s

As of September 30, 2015, except where applicable in pro forma financial ratios, which are pro forma to reflect the Company’s December 2015 common equity issuance. (1) Mortgage note payable may be extended, at the Company’s election, for two years to May 2019, subject to certain conditions.

Debt Maturities Pro Forma Financial Ratios

$8.6 $20.9 $52.0 $0.0 $45.0 $65.0 $29.1 $50.0 $8.6 $50.0

$0.0 $15.0 $30.0 $45.0 $60.0 $75.0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 $ millions

68%

22% 10%

Common Equity

Unsecured Debt Secured Debt Weighted Average Debt Maturity: 7.1 years

(1)

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Co nsiste nt Pe rfo rma nc e

AFFO per Share FFO per Share

(1) Consensus earnings estimates per SNL Financial. (2) Company estimate.

G&A % of Total Revenue Dividends per Share

Management is focused on delivering consistent earnings and dividend growth

$2.04 $2.10 $2.18 $2.39

$1.90 $2.00 $2.10 $2.20 $2.30 $2.40 2012 2013 2014 2015E

$1.60 $1.64 $1.74 $1.85

$1.44 $1.56 $1.68 $1.80 $1.92 2012 2013 2014 2015

15.9% 13.7% 12.3% 10.5%

8.0% 10.5% 13.0% 15.5% 18.0% 2012 2013 2014 2015

$2.09 $2.13 $2.22 $2.38

$1.90 $2.00 $2.10 $2.20 $2.30 $2.40 2012 2013 2014 2015E (1)

(1) (2)

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2015E AFFO Payout Ratio Current Dividend Yield

Attra c tive Re la tive Va lue

ADC offers a well covered dividend and valuation opportunity

4.6% 7.0% 5.7%

4.25% 4.75% 5.25% 5.75% 6.25% 6.75% 7.25% NNN · O · STOR All Net Lease ADC

78.8% 84.0% 79.2%

75.0% 77.0% 79.0% 81.0% 83.0% 85.0% NNN · O · STOR All Net Lease ADC

Per KeyBanc Capital Markets “The Leaderboard” as of January 8, 2016. Data is based on consensus earnings estimates per SNL Financial. (1) Includes National Retail Properties, Realty Income and STORE Capital.

2016E AFFO Multiple 2016E FFO Multiple

15.1x 14.0x 11.5x 12.8x

10.0x 12.0x 14.0x 16.0x Shopping Centers NNN · O · STOR All Net Lease ADC

18.8x 13.8x 11.7x 13.1x

10.0x 12.0x 14.0x 16.0x 18.0x 20.0x Shopping Centers NNN · O · STOR All Net Lease ADC

(1) (1) (1) (1)

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I nve stme nt Summa ry Hig hlig hts

  • Pure-play retail net lease REIT
  • Unique real estate investment strategy
  • Proven external growth platforms
  • Fortress balance sheet
  • Consistent earnings and dividend growth
  • Attractive relative valuation
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Appendix

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21 Properties 279 Gross Leasable Area 5.2M SF Occupancy 99.5% States 41 Tenants 120 Retail Sectors 25+ Investment Grade % (1) 51.4% Weighted-Average Lease Term (1) 11.4 years

Po rtfo lio Sna psho t

Lease Expirations Overview Retail Sectors Tenants

$0.3 $1.7 $1.4 $4.3 $2.6 $4.2 $2.7 $3.3 $6.3 $5.2 $40.4

$0.0 $10.0 $20.0 $30.0 $40.0 $ millions

As of January 13, 2016 (1) Based on GAAP annualized base rent.

($ in thousands)

Annualized % of Tenant Sector Base Rent(1) Total Pharmacy $16,659 23.0% Restaurants - Quick Service 5,643 7.8% General Merchandise 3,956 5.5% Apparel 3,903 5.4% Grocery Stores 3,843 5.3% Warehouse Clubs 3,749 5.2% Health & Fitness 3,562 4.9% Sporting Goods 3,149 4.3% Specialty Retail 3,147 4.3% Convenience Stores 2,599 3.6% Restaurants - Casual Dining 2,388 3.3% Dollar Stores 2,280 3.1% Auto Parts 2,267 3.1% Home Improvement 1,846 2.5% Other 13,437 18.6% Total $72,431 100.0%

($ in thousands)

Annualized % of Tenant / Concept Base Rent(1) Total Walgreens $12,310 17.0% Wal-Mart 3,924 5.4% Wawa 2,465 3.4% CVS 2,463 3.4% Academy Sports 1,982 2.7% Rite Aid 1,886 2.6% Lowe’s 1,846 2.5% Dollar General 1,795 2.5% 24 Hour Fitness 1,759 2.4% BJ’s Wholesale 1,709 2.4% LA Fitness 1,694 2.3% Charter Foods North 1,537 2.1% Dollar Tree 1,427 2.0% Meridian Restaurants 1,241 1.7% Kohl’s 1,180 1.6% AutoZone 1,163 1.6% Dick’s Sporting Goods 1,089 1.5% Other 30,960 43% Total $72,431 100.0%

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AutoZone Portfolio (14) 6 states Burger King Portfolio (11) North Dakota & Minnesota Taco Bell Portfolio (4) Ohio, Virginia & West Virginia Golden Corral Springfield, IL H-E-B Brenham, TX Wendy’s Portfolio (3) Georgia & South Carolina

Re pre se nta tive Ac q uisitio ns

Single Tenant Net Lease Multi-Tenant Net Lease Franchise Restaurants

Academy Sports + Outdoors / Jo-Ann Fabrics / Orscheln Topeka, KS Bed Bath & Beyond / Old Navy / Dress Barn Grand Chute, WI Michaels / PetSmart Anderson, SC Michaels / Dollar Tree / PetSense Fort Oglethorpe, GA KeyBank Elyria, OH IHOP Elyria, OH

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Re c e nt De ve lo pme nt a nd JVCS Pro je c ts

T.J. Maxx / Ross Dress For Less / Petco New Lenox, IL Wawa

  • St. Petersburg, FL

Buffalo Wild Wings

  • St. Augustine, FL

Cash & Carry Smart Foodservice Burlington, WA McDonald’s East Palatka, FL Cash & Carry Smart Foodservice Salem, OR Hobby Lobby Springfield, OH Wawa Orlando, FL

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DE VE L OP | ACQUI RE | PART NE R