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Agree Realty Corp. Reports Operating Results (10-Q)

August 09, 2010 | About:
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10qk

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Agree Realty Corp. (ADC) filed Quarterly Report for the period ended 2010-06-30.

Agree Realty Corp. has a market cap of $230.97 million; its shares were traded at around $23.68 with a P/E ratio of 8.61 and P/S ratio of 6.2. The dividend yield of Agree Realty Corp. stocks is 8.61%. Agree Realty Corp. had an annual average earning growth of 0.7% over the past 5 years.ADC is in the portfolios of Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

Minimum rental income increased $241,000, or 3%, to $8,421,000 in 2010, compared to $8,180,000 in 2009. The increase was the result of the development of a Walgreens drug store in Port St John, Florida in June 2009, the development of a Walgreens drug store in Lowell, Michigan in September 2009, the development of a Chase bank land lease in Southfield, Michigan in October 2009, the acquisition of a CVS drug store in June 2010 in Atchison, Kansas and the acquisition of a CVS drug store in June 2010 in Johnstown, Ohio. Our revenue increase from these developments and acquisitions amounted to $226,000. In addition, rental income increased $15,000 as a result of other rent adjustments.

Property operating expenses (shopping center maintenance, snow removal, insurance and utilities) decreased $2,000, or 1%, to $330,000 in 2010, compared to $332,000 in 2009. The decrease was the result of: a decrease in snow removal costs of ($2,000); an increase in shopping center maintenance costs of $14,000; an increase in utility costs of $2,000; and a decrease in insurance costs of ($16,000) in 2010 versus 2009.

General and administrative expenses increased by $204,000, or 20%, to $1,202,000 in 2010, compared to $998,000 in 2009. The increase in general and administrative expenses was the result of increased chasing costs for Florida properties of $84,000, income tax expenses in our TRS entities of $74,000 and other costs of $46,000. General and administrative expenses as a percentage of total rental income (minimum and percentage rents) increased from 12.20% for 2009 to 14.25% for 2010.

Property operating expenses (shopping center maintenance, snow removal, insurance and utilities) decreased $64,000, or 8%, to $726,000 in 2010, compared to $790,000 in 2009. The decrease was the result of: a decrease in snow removal costs of ($60,000); an increase in shopping center maintenance costs of $6,000; an increase in utility costs of $10,000; and a decrease in insurance costs of ($20,000) in 2010 versus 2009.

General and administrative expenses increased by $204,000, or 9%, to $2,454,000 in 2010, compared to $2,250,000 in 2009. The increase in general and administrative expenses was the result of increased chasing costs for Florida properties of $102,000, income tax expenses in our TRS entities of $100,000 and other costs of $2,000. General and administrative expenses as a percentage of total rental income (minimum and percentage rents) increased from 13.67% for 2009 to 14.61% for 2010.

Our cash flows from operations decreased $685,000 to $10,950,000 for the six months ended June 30, 2010, compared to $11,635,000 for the six months ended June 30, 2009. Cash used in investing activities decreased $2,230,000 to $3,899,000 in 2010, compared to $6,129,000 in 2009. Cash used in financing activities increased $1,472,000 to $7,381,000 in 2010, compared to $5,909,000 in 2009.

Read the The complete Report

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10qk
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