PRESS RELEASE - FOR IMMEDIATE RELEASE
CONTACT: Kenneth R. Howe, Chief Financial Officer
(248) 737-4190
AGREE REALTY CORPORATION REPORTS SECOND QUARTER OPERATING RESULTS
SECOND QUARTER 2003 HIGHLIGHTS:
FINANCIAL INFORMATION
o Diluted FFO per share of $0.73
o 10.8% increase in Funds from Operations
o 11.9% increase in net income
o 13.9% increase in revenues
o $0.485 per share regular quarterly dividend declared June 16,
2003
FARMINGTON HILLS, MI (July 24, 2003) - Agree Realty Corporation (NYSE:
ADC) today announced results for the quarter ended June 30, 2003. For the second
quarter, funds from operations increased 10.8% to $3,784,000 compared with funds
from operations in the second quarter of 2002 of $3,415,000. Diluted funds from
operations per share increased 7.4% to $.73 per share compared with $0.68 per
share for the second quarter of 2002. Net income increased 11.9% to $2,374,000,
or $0.53 per share on a diluted basis, compared with net income for the second
quarter of 2002 of $2,121,000, or $0.48 per share. Total revenues increased
13.9% to $7,086,000, compared with total revenues of $6,199,000 in the second
quarter of 2002.
For the six months ended June 30, 2003, funds from operations increased
12.0% to $7,421,000 compared with funds from operations for the six months ended
June 30, 2002 of $6,624,000. Diluted funds from operations per share increased
9.1% to $1.44 per share compared with $1.32 per share for the six months ended
June 30, 2002. Net income
increased 13.7% to $4,618,000, or $1.03 per share on a diluted basis, compared
with net income for the comparable period last year of $4,063,000, or $0.91 per
share. Total revenues increased 14.0% to $14,105,000, compared with total
revenues of $12,368,000 for the comparable period last year.
DIVIDEND
The Company paid a cash dividend of $0.485 per share on July 15, 2003
to shareholders of record on June 30, 2003. The dividend is equivalent to an
annualized dividend of $1.94 per share and represents a payout ratio of 66.4% of
funds from operations for the quarter, down from 67.7% for the second quarter of
2002.
FINANCING
In the second quarter of 2003 we extended the term of our $5 million
line of credit with Standard federal Bank to April 30, 2004
PORTFOLIO RESULTS
At June 30, 2003, Agree Realty Corporation's total assets were $184.1
million. At quarter-end the Company's portfolio consisted of 49 properties
totaling 3.7 million square feet located in 13 states. The portfolio is 97%
leased.
Agree Realty Corporation considers portions of the information
contained in this release to be forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 27E of the Securities
Exchange Act of 1934, both as amended, with respect to the Company's expectation
for future periods. Such statements are, by their nature, subject to certain
risks and uncertainties. The Company cautions that, as a result of a number of
factors, actual results could differ materially from those set forth in this
presentation. Other risks, uncertainties and factors that could cause actual
results to differ materially than those projected are detailed from time to time
in reports filed by the Company with the Securities and Exchange Commission,
including Forms 8-K, 10-Q and 10-K.
For additional information, visit the Company's home page on the
Internet at http://www.agreerealty.com
Agree Realty Corporation
31850 Northwestern Highway
Farmington Hills, MI 48334
(248) 737-4190
AGREE REALTY CORPORATION
OPERATING RESULTS (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
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2003 2002 2003 2002
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REVENUE
Basic rental $ 6,299 $ 5,565 $12,511 $11,042
Percent rent 10 8 51 44
Operating cost reimbursements 777 625 1,541 1,278
Management fees and other - 1 2 4
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TOTAL REVENUE 7,086 6,199 14,105 12,368
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EXPENSES
Real estate taxes 525 454 1,031 895
Property operating expenses 457 278 1,119 826
Land lease payments 185 185 369 369
General and administrative 566 488 1,123 964
Depreciation and amortization 1,060 980 2,123 1,959
Interest expense 1,675 1,546 3,259 3,023
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TOTAL EXPENSES 4,468 3,931 9,024 8,036
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Other income 113 174 231 347
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INCOME BEFORE MINORITY INTEREST 2,731 2,442 5,312 4,679
Minority interest 357 321 694 616
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NET INCOME $ 2,374 $ 2,121 $ 4,618 $ 4,063
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NET INCOME PER SHARE $ 0.53 $ 0.48 $ 1.03 $ 0.91
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RECONCILIATION OF FUNDS FROM OPERATIONS
TO NET INCOME BEFORE MINORITY INTEREST
Net income before minority interest $ 2,731 $ 2,442 $ 5,312 $ 4,679
Depreciation of real estate assets 1,039 956 2,080 1,911
Amortization of leasing costs 14 17 29 34
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FUNDS FROM OPERATIONS $ 3,784 $ 3,415 $ 7,421 $ 6,624
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FUNDS FROM OPERATIONS PER SHARE $ 0.73 $ 0.68 $ 1.44 $ 1.32
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Weighted average number of shares
and "OP" Units outstanding 5,153 5,120 5,153 5,120
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Agree Realty Corporation
Consolidated Balance Sheets (in thousands)
(Unaudited)
June 30, Dec 31,
2003 2002
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ASSETS
Real estate investments, at cost $ 220,484 $ 210,986
Accumulated depreciation (39,527) (37,456)
Cash and cash equivalents 201 1,096
Accounts receivable 416 785
Investments in and advances to
unconsolidated entities 272 315
Deferred costs, net of amortization 1,322 1,425
Other assets 950 1,011
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TOTAL ASSETS $ 184,118 $ 178,162
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LIABILITIES AND STOCKHOLDERS' EQUITY
Mortgages payable $ 78,072 $ 71,589
Construction loans 5,585 5,612
Notes payable 37,458 38,083
Other liabilities 4,005 4,468
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TOTAL LIABILITIES 125,120 119,752
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TOTAL MINORITY INTEREST 5,831 5,787
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Common stock 1 1
Additional paid-in capital 65,027 64,507
Accumulated deficit (10,840) (11,136)
Unearned compensation (1,021) (749)
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TOTAL STOCKHOLDERS' EQUITY 53,167 52,623
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$ 184,118 $ 178,162
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