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

November 05, 2010 | About:
10qk

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.
This is the annual revenues and earnings per share of ADC over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of ADC.


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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