Agree Realty Corp. (NYSE:ADC) filed Quarterly Report for the period ended 2010-03-31.
Agree Realty Corp. has a market cap of $198.5 million; its shares were traded at around $24 with a P/E ratio of 8.45 and P/S ratio of 5.33. The dividend yield of Agree Realty Corp. stocks is 8.5%.ADC is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:Minimum rental income increased $106,000, or 1%, to $8,437,000 in 2010, compared to $8,331,000 in 2009. The increase was the result of the development of a Walgreens drug store in Brighton, Michigan in February 2009, 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 and the development of a Chase bank land lease in Southfield, Michigan in October 2009. Our revenue increase from these developments amounted to $254,000. In addition, rental income decreased ($148,000) as a result of the closing of a Circuit City store in Boynton Beach, Florida and other rent adjustments.
Property operating expenses (shopping center maintenance, snow removal, insurance and utilities) decreased $63,000, or 14%, to $396,000 in 2010 compared to $459,000 in 2009. The decrease was the result of: a decrease in snow removal costs of ($58,000) a decrease in shopping center maintenance costs of ($8,000); an increase in utility costs of $7,000 and a decrease in insurance costs of ($4,000) in 2010 versus 2009.
General and administrative expenses increased by $1,000, to $1,252,000 in 2010, compared to $1,251,000 in 2009. General and administrative expenses as a percentage of total rental income (minimum and percentage rents) decreased from 14.69% for 2009 to 14.53% for 2010.
Depreciation and amortization increased $38,000, or 3%, to $1,432,000 in 2010, compared to $1,394,000 in 2009. The increase was the result of the development of five properties in 2009.
Our cash flows from operations decreased $384,000 to $5,072,000 for the three months ended March 31, 2010, compared to $5,456,000 for the three months ended March 31, 2009. Cash used in investing activities decreased $999,000 to $243,000 in 2010, compared to $1,242,000 in 2009. Cash used in financing activities increased $332,000 to $4,953,000 in 2010, compared to $4,621,000 in 2009.
As of March 31, 2010, we had total mortgage indebtedness of $74,570,951. Of this total mortgage indebtedness, $50,535,759 is fixed rate, self-amortizing debt with a weighted average interest rate of 6.56%. The remaining mortgage debt of $24,035,192 bears interest at 150 basis points over LIBOR or 1.75% as of March 31, 2010 and has a maturity date of July 14, 2013, which can be extended at our option for two additional years. In January 2009, we entered into an interest rate swap agreement that fixes the interest rate during the initial term of the variable-interest mortgage at 3.744%.
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