Does Agree Realty Agree With You? (ADC)

Investors might want to take a look at Agree Realty Corporation (NYSE: ADC), especially if Borders Group (NYSE: BGP) is magically saved, and doesn't file for Chapter 11 bankruptcy.

The real estate investment trust has reduced its importance on the beleaguered book seller, reducing annualized aggregate rental income from Borders by 26% since December 31, 2009 levels. Total annualized aggregate rental income from Borders is now down markedly from that time as well, down to 20% from 29%.

"The disposition of these two Borders assets is further evidence of our commitment to diversify our portfolio," said Joey Agree, President and Chief Operating Officer of Agree Realty Corporation. "This transaction, in conjunction with the sale of the Santa Barbara Borders in March of 2010 as well as the termination of the Aventura Borders lease in November of 2010, has significantly reduced our aggregate Borders rental income."

If the company can continue to reduce its importance on Borders as a major source of rental income, and diversify into other major tenants, investors may want to look at owning shares of this depressed REIT. If for some reason that Borders is saved, and doesn't file Chapter 11, shares of ADC could see a huge pop on that news.

Agree Realty is engaged in the ownership, management and development of properties which are primarily single tenant properties leased to major retail tenants and neighborhood community shopping centers. Agree Realty owns and operates a portfolio of 79 properties, located in 17 states and containing 3.5 million square feet of leasable space.

Disclosure: no position in names mentioned

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