Market Overview

Small Cap Agree Realty on the Rise

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Shares of small cap Agree Realty (NYSE: ADC) have been on the rise lately, rallying over 17 percent in the last six months.

The Farmington Hills, Michigan-based realty company currently has 109 properties. But if Joey Agree, the company's President and CEO has his way, that number could increase by a factor of 10.

Agree Realty works with major retail partners like Walgreen (NYSE: WAG) to acquire and develop retail locations. Two years ago, the company suffered somewhat of a set back after one of its major partners -- Borders Books -- went bankrupt.

Benzinga sat down with Agree to get his take on the business and the state of the retail market.

“We've overcome some hurdles,” Agree said. “You won't see us investing in retail we think is susceptible to e-commerce...book stores, electronic stores.”

Now, the company's strategy is focused around working with (as Agree calls them) “industry leading” retailers with business models that can survive online competition. In addition to its extensive partnership with Walgreen, Agree also works with McDonald's (NYSE: MCD), JP Morgan (NYSE: JPM) and Wawa -- a privately owned gas station/convenience store.

Of the analysts that cover the company, many of them see the potential for future dividend boosts. In a recent note, Compass Point Research wrote that the firm still saw “room for the dividend to grow.” Trading near $28, Agree yields about 5.60 percent.

“We are always looking to grow our dividend on a consistent basis,” Agree said. “We believe there's significant value in having that level of predictability with our shareholders.”

What does the future hold for the company?

“Hopefully that number of properties continues to grow, and hopefully in a decade or sooner that number is north of 1000,” Agree said.

Latest Ratings for ADC

DateFirmActionFromTo
May 2014WunderlichUpgradesHoldBuy
Nov 2013Compass PointMaintainsBuy
Oct 2013Raymond JamesUpgradesMarket PerformOutperform

View More Analyst Ratings for ADC
View the Latest Analyst Ratings

Posted-In: Joey AgreeAnalyst Color News Dividends Small Cap Analysis Management Analyst Ratings Trading Ideas Best of Benzinga

 

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