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

November 05, 2010 | About:
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10qk

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Agree Realty Corp. (ADC) filed Quarterly Report for the period ended 2010-09-30.

Agree Realty Corp. has a market cap of $276.6 million; its shares were traded at around $28.1 with a P/E ratio of 10.3 and P/S ratio of 7.2. The dividend yield of Agree Realty Corp. stocks is 7.2%. 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 $270,000, or 3%, to $8,615,000 in 2010, compared to $8,345,000 in 2009. The increase was the result of 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, the acquisition of a CVS drug store in June 2010 in Johnstown, Ohio and the acquisition of a CVS drug store in August 2010 in Lake in the Hills, Illinois. Our revenue increase from these developments and acquisitions amounted to $257,000. In addition, rental income increased $13,000 as a result of other rent adjustments.

Property operating expenses (shopping center maintenance, snow removal, insurance and utilities) decreased $13,000, or 3%, to $397,000 in 2010, compared to $410,000 in 2009. The decrease was the result of: an increase in shopping center maintenance costs of $9,000; a decrease in utility costs of $14,000; and a decrease in insurance costs of $8,000 in 2010 versus 2009.

General and administrative expenses increased by $67,000, or 6%, to $1,150,000 in 2010, compared to $1,083,000 in 2009. The increase in general and administrative expenses was the result of increased employee costs of $42,000, increased income tax expenses in our TRS entities of $26,000 offset by a decrease in other costs of $1,000. General and administrative expenses as a percentage of total rental income (minimum and percentage rents) increased from 12.98% for 2009 to 13.34% for 2010.

Property operating expenses (shopping center maintenance, snow removal, insurance and utilities) decreased $77,000, or 6%, to $1,123,000 in 2010, compared to $1,200,000 in 2009. The decrease was primarily the result of: a decrease in snow removal costs of $60,000; an increase in shopping center maintenance costs of $15,000; a decrease in utility costs of $4,000; and a decrease in insurance costs of $28,000 in 2010 versus 2009.

General and administrative expenses increased by $271,000, or 8%, to $3,604,000 in 2010, compared to $3,333,000 in 2009. The increase in general and administrative expenses was the result of increased employee costs of $153,000, and income tax expenses in our TRS entities of $126,000, offset by a net decrease of $8,000 of other expenses. General and administrative expenses as a percentage of total rental income (minimum and percentage rents) increased from 13.44% for 2009 to 14.18% for 2010.

Our cash flows from operations increased $917,000 to $18,304,000 for the nine months ended September 30, 2010, compared to $17,387,000 for the nine months ended September 30, 2009. Cash used in investing activities increased $3,067,000 to $11,290,000 in 2010, compared to $8,223,000 in 2009. Cash used in financing activities decreased $2,105,000 to $7,366,000 in 2010, compared to $9,471,000 in 2009.

Read the The complete Report

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