# EDGAR Filing Document

**Accession Number:** 0000917251
**File Stem:** 0001104659-23-039614
**Filing Date:** 2023-3
**Character Count:** 460455
**Document Hash:** 8cadb5a4827ba35a0af286c3016a06da
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-23-039614.hdr.sgml**: 20230331

**ACCESSION NUMBER**: 0001104659-23-039614

**CONFORMED SUBMISSION TYPE**: ARS

**PUBLIC DOCUMENT COUNT**: 1

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230331

**DATE AS OF CHANGE**: 20230331

**EFFECTIVENESS DATE**: 20230331

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** AGREE REALTY CORP
- **CENTRAL INDEX KEY:** 0000917251
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE INVESTMENT TRUSTS [6798]
- **IRS NUMBER:** 383148187
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** ARS
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-12928
- **FILM NUMBER:** 23783250

**BUSINESS ADDRESS:**
- **STREET 1:** 70 E. LONG LAKE ROAD
- **CITY:** BLOOMFIELD HILLS
- **STATE:** MI
- **ZIP:** 48034
- **BUSINESS PHONE:** 8107374190

**MAIL ADDRESS:**
- **STREET 1:** 70 E. LONG LAKE ROAD
- **CITY:** BLOOMFIELD HILLS
- **STATE:** MI
- **ZIP:** 48034

### Attached PDF Documents

**Attachment 1:** `tm233376d2_ars.pdf`

![img-0.jpeg](img-0.jpeg)

# ANNUAL REPORT 2022

# ANNUAL REPORT

DECEMBER 31, 2022

Agree Realty Corporation (NYSE: ADC) is a fully-integrated, self-administered, and self-managed real estate investment trust (REIT) whose mission is to **RETHINK RETAIL** through the acquisition and development of properties net leased to industry-leading, omni-channel retail tenants throughout the United States.

Building upon the foundation of excellence established throughout the past five decades, Agree Realty continues to be a market leader in the net lease space. As of December 31, 2022, our growing portfolio consisted of 1,839 assets in all 48 continental states, containing approximately 38.1 million square feet of gross leasable area.

2022

![img-1.jpeg](img-1.jpeg)

2021

![img-2.jpeg](img-2.jpeg)

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2020

![img-4.jpeg](img-4.jpeg)

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2019

![img-7.jpeg](img-7.jpeg)

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![img-10.jpeg](img-10.jpeg)

2018

![img-11.jpeg](img-11.jpeg)

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2017

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![img-20.jpeg](img-20.jpeg)

AGREE REALTY
RETHINK RETAIL

# Dear Fellow Shareholders,

This past year was yet another record year for our Company. We invested or committed $1.7 billion in 465 retail net lease properties, the eleventh consecutive year of record investment volume. Our record investment volume drove strong AFFO per share growth of 9.2% in 2022 and almost 19% on a two-year stacked basis. Simultaneously, we further strengthened our fortress balance sheet, raising approximately $1.7 billion of capital and positioning ourselves for continued growth.

This consistent growth and conservative balance sheet management has driven tremendous total returns for our shareholders. As of year-end, we delivered a 10-year total shareholder return of almost 315%, which is in the top 10 of all equity REITs and nearly 50% higher than any other retail or net lease REIT. Once again, with the current volatile economic environment and uncertainty driven by geopolitical events, our best-in-class portfolio and balance sheet are positioned to deliver stable, growing, and predictable returns to our shareholders.

We coupled our record performance last year with an ALL IN commitment to improve our efforts toward people, processes, and systems. This started with a refresh of the Core Values we had put in place over twelve years ago. We reflected on the behaviors that drive our success and established the new Core Values that clarify how all our Team Members operate on a daily basis. These values are the keys to entry at ADC and are the foundation for how we make decisions in all functions of the Company.

- ✓ **Brick by Brick** - *We achieve results by making consistent, disciplined decisions.*
- ✓ **Greatness Requires Grit** - *We have a resilient mindset to achieve and exceed our goals.*
- ✓ **We All Do the Dishes** - *We are a Team. We all roll up our sleeves and dig in, no matter the task.*
- ✓ **Punch Your Ticket** - *We push ourselves to be the best we can at our position and embrace the opportunities that new challenges present.*

Please allow me to review our Company's accomplishments during the past year through the lens of our Core Values.

### Brick by Brick

**We achieve results by making consistent, disciplined decisions.** Our investment philosophy requires a methodical approach. Constructing our portfolio at the asset level has allowed us to select each property rather than acquiring portfolios with assets of varying quality. When we launched the acquisition platform in 2010, our portfolio was comprised of 73 properties with approximately 70% of annualized base rents coming from Walgreens, Borders, and Kmart. We embarked on building the best retail portfolio in the country with a focus on recession resistant, omni-channel retailers that occupy fundamentally strong real estate.

We have now invested more than $7 billion since the launch of our acquisition platform, adding over 1,800 high-quality retail net lease properties. At year end, our portfolio was 99.7% leased and generated 67.8% of annualized base rents from investment grade retail tenants. In addition, properties that are ground leased to tenants represented 12.4% of annualized base rents.

We deploy the same disciplined approach to managing each of our assets and building relationships with our tenants. Our Asset Management Team made over 3,900 connections at the corporate or store level in the past year, strengthening our ties with retailers and gaining valuable insight into the performance of our properties and their submarkets.

### Greatness Requires Grit

**We have a resilient mindset to achieve and exceed our goals.** Constructing and maintaining the preeminent retail portfolio in the country requires perseverance and tenacity. This past year, we acquired 434 assets for a total acquisition volume of almost $1.6 billion. This equates to acquiring 1.7 properties per business day, with an average purchase price shy of $4 million.

To successfully execute this high-volume strategy, we developed key performance indicators ("KPI's") across our organization to clarify where and how we can continue to improve. Our Acquisition Team added thousands of contacts to our database and increased the number of outbound connections to find more opportunities. Our Due Diligence and Legal Teams streamlined processes to reduce our average closing timeline. Our Asset Management Team worked to enhance our onboarding processes and exceeded all KPI's for work order completion, further demonstrating the value of our platform to our retail partners.

ADC
TRAVEL
NYSE

![img-21.jpeg](img-21.jpeg)

## We All Do the Dishes

**We are a Team. We all roll up our sleeves and dig in, no matter the task.** As our Team and portfolio has grown, we remain committed to empowering Team Members to participate in cross-functional initiatives to enhance our operations. To this end, we have created project teams and committees to tackle initiatives focused on implementing innovative technologies, streamlining processes, and evolving our business practices.

Our Project Campfire Team successfully implemented MRI, our new enterprise resource planning ('ERP') system. Our data supremacy initiative has been of critical importance as we have scaled our operations and MRI has already resulted in over 2,000 hours of estimated time savings annually for our Team. The Project Campfire Team completed this company-wide system overhaul nearly three months ahead of schedule and our implementation is considered a model of excellence for other companies.

Our Arc Team worked through significant enhancements to our proprietary database including a new retailer intelligence module. Arc provides real-time access to portfolio and pipeline data from multiple sources, seamlessly integrating the data into a comprehensive decision-making tool. Throughout the year, this Team completed more than 50 arc enhancements and integrated the database with MRI.

Our Steering Committee advanced the Company's environmental, social and governance ('ESG') initiatives including focusing on tenant engagement. The Committee partnered with our Legal Team to incorporate green lease clauses into our standard lease forms and executed several green leases with tenants. In addition, we worked closely with our consultant to conduct a greenhouse gas emissions inventory and calculate our emissions.

## Punch Your Ticket

**We push ourselves to be the best we can at our position and embrace the opportunities that new challenges present.** While we have continued to scale our infrastructure to support our growth and enable future expansion, we will not allow this to alter the entrepreneurial essence of our Company. This past year, there were 19 promotions or cross-functional moves made by our Team Members.

We also launched the ADC Rotational Program, which provides high potential Team Members with a range of experiences to build real estate leaders and future executives. Team Members in this program spend time in multiple departments including Acquisitions, Due Diligence, and Asset Management where they gain firsthand experience and exposure. Participants work on projects within each rotation and participate in knowledge sharing efforts. At the program's end, the Team Member is placed in a new or existing opportunity based on their acquired skillset and career ambitions.

Providing both horizontal and vertical mobility opportunities is a key pillar of our talent management strategy. We see change as an opportunity. Empowering our Team Members through differentiated experiences provides them with opportunities for growth and better positions the Company for continued success.

## In Conclusion

Our commitment to our Core Values has created the country's leading retail portfolio, further strengthened our fortress-like balance sheet, and driven our focus on continuous development of our people, processes, and systems. These attributes are consistent with this year's theme of **ROCK SOLID** and enable us to provide safety and stability during these uncertain times. I would like to thank our loyal shareholders, our Board of Directors, our retail partners, and our committed Team for their continued support of Agree Realty Corporation.

Sincerely,

![Handwritten signature of Joey Agree]()

President & Chief Executive Officer

# **UNITED STATES**
**SECURITIES AND EXCHANGE COMMISSION**
**Washington, DC 20549**
**FORM 10-K**

☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2022

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission File Number 001-12928

# **AGREE REALTY CORPORATION**

(Exact name of registrant as specified in its charter)

**Maryland**

(State or other jurisdiction of incorporation or organization)

**38-3148187**

(I.R.S. Employer Identification No.)

**70 E. Long Lake Road, Bloomfield Hills, Michigan**

(Address of principal executive offices)

**48304**

(Zip Code)

**(248) 737-4190**

(Registrant's telephone number, including area code)

Securities Registered Pursuant to Section 12(b) of the Act:

| Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered |
| --- | --- | --- |
| Common Stock, $.0001 par value | ADC | New York Stock Exchange |
| Depository Shares, each representing one-thousandth of a share of 4.25% Series A Cumulative Redeemable Preferred Stock, $.0001 par value | ADCPrA | New York Stock Exchange |

Securities Registered Pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☑ No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☑

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☑

Accelerated filer ☐

Non-accelerated filer ☐

Smaller reporting company ☐

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☑

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to § 240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

The aggregate market value of the Registrant's shares of common stock held by non-affiliates was $5,759,057,053 as of June 30, 2022, based on the closing price of $72.13 on the New York Stock Exchange on that date.

At February 13, 2023, there were 90,173,424 shares of common stock, $.0001 par value per share, outstanding.

# **DOCUMENTS INCORPORATED BY REFERENCE**

Portions of the registrant's definitive proxy statement for the annual stockholder meeting to be held in 2023 are incorporated by reference into Part III of this Annual Report on Form 10-K as noted herein.

# **AGREE REALTY CORPORATION**
**Index to Form 10-K**

|  | Page |
| --- | --- |
| PART I |  |
| Item 1: Business | 2 |
| Item 1A: Risk Factors | 9 |
| Item 1B: Unresolved Staff Comments | 23 |
| Item 2: Properties | 23 |
| Item 3: Legal Proceedings | 26 |
| Item 4: Mine Safety Disclosures | 27 |
| PART II |  |
| Item 5: Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 27 |
| Item 6: [Reserved] | 28 |
| Item 7: Management's Discussion and Analysis of Financial Condition and Results of Operations | 28 |
| Item 7A: Quantitative and Qualitative Disclosures about Market Risk | 39 |
| Item 8: Financial Statements and Supplementary Data | 39 |
| Item 9: Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | 39 |
| Item 9A: Controls and Procedures | 40 |
| Item 9B: Other Information | 40 |
| Item 9C: Disclosure Regarding Foreign Jurisdictions that Prevent Inspections | 41 |
| PART III |  |
| Item 10: Directors, Executive Officers and Corporate Governance | 42 |
| Item 11: Executive Compensation | 42 |
| Item 12: Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | 42 |
| Item 13: Certain Relationships and Related Transactions, and Director Independence | 42 |
| Item 14: Principal Accountant Fees and Services | 42 |
| PART IV |  |
| Item 15: Exhibits and Financial Statement Schedules | 43 |
| Consolidated Financial Statements and Notes | F-1 |
| Item 16: Form 10-K Summary | 48 |
| SIGNATURES |  |

(This page has been left blank intentionally.)

# PART I

## Cautionary Note Regarding Forward-Looking Statements

This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe the Company’s future plans, strategies and expectations, are generally identifiable by use of the words “anticipate,” “estimate,” “should,” “expect,” “believe,” “intend,” “may,” “will,” “seek,” “could,” “project” or similar expressions. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the Company’s control and which could materially affect the Company’s results of operations, financial condition, cash flows, performance or future achievements or events. Currently, one of the most significant factors, however, is the adverse effect of macroeconomic conditions and of the current pandemic of the novel coronavirus, or COVID-19, on the financial condition, results of operations, cash flows and performance of the Company and its tenants, the real estate market and the global economy and financial markets. The extent to which macroeconomic trends and COVID-19 impact the Company and its tenants will depend on future developments, which are highly uncertain and cannot be predicted with confidence. Moreover, you should interpret many of the risks identified in this report, as well as the risks set forth below, as being heightened as a result of the ongoing and numerous adverse impacts of macroeconomic conditions and the COVID-19 pandemic. Additional factors which may cause actual results to differ materially from current expectations include, but are not limited to: changes in general economic, financial and real estate market conditions; the financial failure of, or other default in payment by, tenants under their leases and the potential resulting vacancies; the Company’s concentration with certain tenants and in certain markets, which may make the Company more susceptible to adverse events; changes in the Company’s business strategy; risks that the Company’s acquisition and development projects will fail to perform as expected; adverse changes and disruption in the retail sector and the financing stability of the Company’s tenants, which could impact tenants’ ability to pay rent and expense reimbursement; the Company’s ability to pay dividends; risks relating to information technology and cybersecurity attacks, loss of confidential information and other related business disruptions; loss of key management personnel; the potential need to fund improvements or other capital expenditures out of operating cash flow; financing risks, such as the inability to obtain debt or equity financing on favorable terms or at all; the level and volatility of interest rates; the Company’s ability to renew or re-lease space as leases expire; limitations in the Company’s tenants’ leases on real estate tax, insurance and operating cost reimbursement obligations; loss or bankruptcy of one or more of the Company’s major tenants, and bankruptcy laws that may limit the Company’s remedies if a tenant becomes bankrupt and rejects its leases; potential liability for environmental contamination, which could result in substantial costs; the Company’s level of indebtedness, which could reduce funds available for other business purposes and reduce the Company’s operational flexibility; covenants in the Company’s credit agreements and unsecured notes, which could limit the Company’s flexibility and adversely affect its financial condition; credit market developments that may reduce availability under the Company’s revolving credit facility; an increase in market interest rates which could raise the Company’s interest costs on existing and future debt; a decrease in interest rates, which may lead to additional competition for the acquisition of real estate or adversely affect the Company’s results of operations; the Company’s hedging strategies, which may not be successful in mitigating the Company’s risks associated with interest rates; legislative or regulatory changes, including changes to laws governing real estate investment trusts (“REITs”); the Company’s ability to maintain its qualification as a REIT for federal income tax purposes and the limitations imposed on its business by its status as a REIT; and the Company’s failure to qualify as a REIT for federal income tax purposes, which could adversely affect the Company’s operations and ability to make distributions.

*Unless the context otherwise requires, references in this Annual Report on Form 10-K to the terms “registrant,” the “Company,” “Agree Realty,” “we,” “our” or “us” refer to Agree Realty Corporation and all of its consolidated subsidiaries, including its majority owned operating partnership, Agree Limited Partnership (the “Operating Partnership”). Agree Realty has elected to treat certain subsidiaries as taxable real estate investment trust subsidiaries which are collectively referred to herein as the “TRS.”*

1

## **Item 1: Business**

### **General**

The Company is a fully integrated REIT primarily focused on the ownership, acquisition, development and management of retail properties net leased to industry leading tenants. The Company was founded in 1971 by its current Executive Chairman, Richard Agree, and its common stock was listed on the New York Stock Exchange (“NYSE”) in 1994. The Company’s assets are held by, and all of its operations are conducted through, directly or indirectly, the Operating Partnership of which the Company is the sole general partner and in which it held a 99.6% common interest as of December 31, 2022. Under the agreement of limited partnership of the Operating Partnership, the Company, as the sole general partner, has exclusive responsibility and discretion in the management and control of the Operating Partnership.

As of December 31, 2022, the Company’s portfolio consisted of 1,839 properties located in 48 states and totaling approximately 38.1 million square feet of Gross Leasable Area (“GLA”). The portfolio was approximately 99.7% leased and had a weighted average remaining lease term of approximately 8.8 years. A significant majority of the Company’s properties are leased to national tenants and approximately 67.8% of our annualized base rent was derived from tenants, or parent entities thereof, with an investment grade credit rating from S&P Global Ratings, Moody’s Investors Service, Fitch Ratings or the National Association of Insurance Commissioners. Substantially all of our tenants are subject to net lease agreements. A net lease typically requires the tenant to be responsible for minimum monthly rent and property operating expenses including property taxes, insurance and maintenance.

As of December 31, 2022, the Company had 76 full-time employees, covering acquisitions, development, legal, asset management, accounting, finance, administrative and executive functions.

The Company was incorporated in December 1993 under the laws of the State of Maryland. The Company believes that it has operated, and it intends to continue to operate, in such a manner to qualify as a REIT under the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”). In order to maintain qualification as a REIT, the Company must, among other things, distribute at least 90% of its REIT taxable income each year and meet asset and income tests. Additionally, its charter limits ownership of the Company, directly or constructively, by any single person to 9.8% of the value or number of shares, whichever is more restrictive, of its outstanding common stock and 9.8% of the value of the aggregate of all of its outstanding stock, subject to certain exceptions. As a REIT, the Company is not subject to federal income tax with respect to that portion of its income that is distributed currently to its stockholders.

The Company’s principal executive offices are located at 70 E. Long Lake Road, Bloomfield Hills, MI 48304 and its telephone number is (248) 737-4190. The Company’s website is www.agreerealty.com. The Company’s reports are electronically filed with or furnished to the Securities and Exchange Commission (“SEC”) pursuant to Section 13 or 15(d) of the Exchange Act and can be accessed through this site, free of charge, as soon as reasonably practicable after we electronically file or furnish such reports. These filings are also available on the SEC’s website at www.sec.gov. The Company’s website also contains copies of its corporate governance guidelines and code of business conduct and ethics, as well as the charters of its audit, compensation and nominating and governance committees. The information on the Company’s website is not part of this report.

### **Recent Developments**

For a discussion of business developments that occurred in 2022, see “Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations” later in this report. Certain summarized highlights are contained below.

#### ***Investments and Disposition Activity***

During 2022, the Company completed approximately $1.62 billion of investments in net leased retail real estate, including acquisition and closing costs. Total investment volume includes the acquisition of 434 properties for an aggregate purchase price of approximately $1.6 billion and the completed development of seven properties for an aggregate cost of approximately $22.5 million. These 441 properties are net leased to tenants operating in 27 sectors and are located in 43 states. These assets are 100% leased for a weighted average lease term of approximately 10.2 years.

2

During 2022, the Company sold seven assets for net proceeds of $44.9 million.

### ***Leasing***

During 2022, excluding properties that were sold, the Company executed new leases, extensions or options on approximately 850,000 square feet of GLA throughout its portfolio. The annualized base contractual rent associated with these new leases, extensions or options is approximately $8.6 million.

### ***Dividends***

The Company increased its monthly dividend per common share from $0.227 to $0.234 in April 2022 and further increased the monthly dividend per common share to $0.240 in October 2022.

The December 2022 dividend per share of $0.240 represents an annualized dividend of $2.88 per share and an annualized dividend yield of approximately 4.1% based on the last reported sales price of our common stock listed on the NYSE of $70.93 on December 30, 2022.

The Company has routinely paid cash dividends to our common shareholders. Common cash dividends were paid quarterly for 107 consecutive quarters between 1994 and 2020 prior to moving to monthly common cash dividends in 2021. We have since paid 25 consecutive monthly dividends. Although we expect to continue our policy of paying regular dividends, we cannot guarantee that we will maintain our current level of common dividends, that we will continue our recent pattern of increasing dividends per share or what our actual dividend yield will be in any future period.

In addition to its common dividends, the Company paid monthly cash dividends on its 4.25% Series A Cumulative Redeemable Preferred Stock.

### ***Financing***

#### ***Equity***

During 2022, the Company completed two follow-on public offerings totaling 11,500,000 shares of common stock under its shelf registration statement, in connection with forward sale agreements. Upon settlement, these offerings are anticipated to raise total net proceeds of $767.4 million after deducting fees and expenses and making certain other adjustments as provided in the equity distribution agreements. During 2022, the Company settled 7,350,000 shares of common stock under these forward sale agreements, realizing net proceeds of $492.9 million. In addition, the Company settled 5,750,000 shares of common stock under a forward settlement agreement related to a follow-on public offering from December 2021, realizing net proceeds of $368.7 million.

In September 2022, the Company entered into a new $750 million at-the-market (“ATM”) program (the “2022 ATM Program”) through which the Company, from time to time, may sell shares of common stock and/or enter into forward sale agreements.

During 2022, the Company settled 5,453,975 shares of common stock under predecessor ATM programs, generating net proceeds of $379.1 million. Additionally, the Company completed forward sale agreements under the 2022 ATM Program for 4,350,232 shares of common stock, for anticipated future net proceeds of $300.9 million. The Company has settled 245,591 shares of these forward sale agreements as of December 31, 2022 for net proceeds of approximately $18.1 million, after deducting fees and expenses. The Company is required to settle these forward agreements by various dates between November and December 2023.

After considering the 4,350,232 shares of common stock subject to forward sale agreements under the 2022 ATM Program, the Company had approximately $446.6 million of availability remaining under the 2022 ATM Program as of December 31, 2022.

3

### Debt

In April 2022, and in connection with a four-property acquisition, the Company assumed an interest only, mortgage note payable with a principal balance of $42.3 million, stated interest rate of 3.63%, and maturity in December 2029.

In August 2022, the Operating Partnership completed an underwritten public offering of $300 million aggregate principal amount of 4.80% Notes due 2032 (the “2032 Senior Unsecured Public Notes”). The 2032 Senior Unsecured Public Notes are fully and unconditionally guaranteed by the Company and certain wholly owned subsidiaries of the Operating Partnership. Considering the effect of terminated swap agreements relating to these notes, the blended all-in rates for the $300 million principal amount is 3.96%.

In November 2022, the Company entered into a First Amendment to the Third Amended and Restated Revolving Credit Agreement which converted the interest rate on its $1.0 billion senior unsecured revolving credit facility (the “Revolving Credit Facility”) from a spread over LIBOR to a spread over Secured Overnight Financing Rate (“SOFR”), plus a SOFR adjustment of 10 basis points. No other changes were made to the Revolving Credit Facility as a result of the amendment.

### Business Strategies

Our primary business objectives are to capitalize on distinct market positioning in the retail net lease space, focus on 21st century industry-leading retailers through our external growth platforms, leverage our real estate acumen and relationships to identify superior risk-adjusted opportunities, maintain a conservative and flexible capital structure that enables growth, and provide consistent, high-quality earnings growth and a well-covered growing dividend. The following is a discussion of our investment, financing and asset management strategies.

#### Investment

We are primarily focused on the long-term, fee simple ownership of properties net leased to national or large, regional retailers operating in sectors we believe to be more e-commerce and recession resistant than other retail sectors. Our leases are typically long-term net leases that require the tenant to pay all property operating expenses, including real estate taxes, insurance and maintenance. We believe that a diversified portfolio of such properties provides for stable and predictable cash flow.

We seek to expand and enhance our portfolio by identifying the best risk-adjusted investment opportunities across our three external growth platforms: development, Partner Capital Solutions (“PCS”) and acquisitions.

Development: We have been developing retail properties since the formation of our predecessor company in 1971 and our development platform seeks to employ our capabilities to direct all aspects of the development process, including site selection, land acquisition, lease negotiation, due diligence, design and construction. Our developments are typically build-to-suit projects that result in fee simple ownership of the property upon completion.

Partner Capital Solutions: We launched our PCS program in April 2012. Our PCS program allows us to acquire properties or development opportunities by partnering with private developers or retailers on their in-process developments. We offer construction expertise and access to capital to facilitate the successful completion of their projects. We typically take fee simple ownership of PCS projects upon completion.

Acquisitions: Our acquisitions platform was launched in April 2010 in order to expand our investment capabilities by pursuing opportunities that meet both our real estate and return on investment criteria.

We believe that development and PCS projects have the potential to generate superior risk-adjusted returns on investment in properties that are substantially similar to those we acquire.

4

We focus on four core principles that underlie our investment criteria:

- Omni-channel critical (e-commerce resistance), focusing on leading operators that have matured in omni-channel structure or those in e-commerce resistant sectors;
- Recession resistance, emphasizing a balanced portfolio with exposure to counter-cyclical sectors and retailers with strong credit profiles;
- Avoidance of private equity sponsorship, emphasizing leading operators with strong balance sheets and minimizing exposure to the possibility of such sponsorship overleveraging their acquisitions and reducing retailers’ abilities to invest in their businesses; and
- Adherence to strong real estate fundamentals and fungible buildings, protecting against unforeseen changes to our investment philosophies.

Each platform leverages the Company’s real estate acumen to pursue investments in net lease retail real estate. Factors that we consider when evaluating an investment include but are not limited to:

- Overall market-specific characteristics, such as demographics, market rents, competition and retail synergy;
- Asset-specific characteristics, such as the age, size, location, zoning, use and environmental history, accessibility, physical condition, signage and visibility of the property;
- Tenant-specific characteristics, including but not limited to the financial profile, operating history, business plan, size, market positioning, geographic footprint, management team, industry and/or sector-specific trends and other characteristics specific to the tenant and parent thereof;
- Unit-level operating characteristics, including store sales performance and profitability, if available;
- Lease-specific terms, including term of the lease, rent to be paid by the tenant and other tenancy considerations; and
- Transaction considerations, such as purchase price, seller profile and other non-financial terms.

### *Financing*

We seek to maintain a capital structure that provides us with the flexibility to manage our business and pursue our growth strategies, while allowing us to service our debt requirements and generate appropriate risk-adjusted returns for our stockholders. We believe these objectives are best achieved by a capital structure that consists primarily of common equity and prudent amounts of preferred equity and debt financing. However, we may raise capital in any form and under terms that we deem acceptable and in the best interest of our stockholders.

We have previously utilized common and preferred stock equity offerings, secured mortgage borrowings, unsecured bank borrowings, private placements and public offerings of senior unsecured notes and the sale of properties to meet our capital requirements. We continually evaluate our financing policies on an on-going basis in light of current economic conditions, access to various capital markets, relative costs of equity and debt securities, the market value of our properties and other factors.

We occasionally sell common stock through forward sale agreements, enabling the Company to set the price of shares upon pricing the offering while delaying the issuance of shares and the receipt of the net proceeds by the Company.

As of December 31, 2022, the Company’s ratio of total debt to enterprise value, assuming the conversion of common limited partnership interests in the Operating Partnership (“Operating Partnership Common Units”) into shares of common stock, was approximately 23.0%, and its ratio of total debt to total gross assets (before accumulated depreciation) was approximately 27.9%.

As of December 31, 2022, our total debt outstanding before deferred financing costs and original issue discount was $1.96 billion, including $50.4 million of secured mortgage debt that had a weighted average fixed interest rate of 3.94% and a weighted average maturity of 6.2 years, $1.81 billion of unsecured borrowings that had a weighted average fixed interest rate of 3.31% (including the effects of previously settled, forward interest rate swap agreements) and a weighted average

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maturity of 7.8 years, and $100.0 million of floating rate borrowings under our revolving credit facility at a weighted average interest rate of approximately 5.14%.

Certain financial agreements to which the Company is a party contain covenants that limit its ability to incur debt under certain circumstances; however, our organizational documents do not limit the absolute amount or percentage of indebtedness that we may incur. As such, we may modify our borrowing policies at any time without stockholder approval.

### ***Asset Management***

We maintain a proactive leasing and capital improvement program that, combined with the quality and locations of our properties, has made our properties attractive to tenants. We intend to continue to hold our properties for long-term investment and, accordingly, place a strong emphasis on the quality of construction and an on-going program of regular and preventative maintenance. Our properties are designed and built to require minimal capital improvements other than renovations or alterations, typically paid for by tenants. Personnel from our corporate headquarters conduct regular inspections of each property, maintain regular contact with major tenants and engage in consistent dialogue to understand store performance and tenant sustainability.

We have a management information system designed to provide our management with the operating data necessary to make informed business decisions on a timely basis. This system provides us rapid access to lease data, tenants’ sales history, cash flow budgets and forecasts. Such a system helps us to maximize cash flow from operations and closely monitor corporate expenses.

### **Competition**

The U.S. commercial real estate investment market is a highly competitive industry. We actively compete with many entities engaged in the acquisition, development and operation of commercial properties. As such, we compete with other investors for a limited supply of properties and financing for these properties. Investors include traded and non-traded public REITs, private equity firms, institutional investment funds, insurance companies and private individuals, many of which have greater financial resources than we do and the ability to accept more risk than we believe we can prudently manage. There can be no assurance that we will be able to compete successfully with such entities in our acquisition, development and leasing activities in the future.

### **Significant Tenants**

No tenant accounted for more than 10.0% of our annualized base rent as of December 31, 2022. See “Item 2 - Properties” for additional information on our top tenants and the composition of our tenant base.

### **Regulation**

#### ***Environmental***

Investments in real property create the potential for environmental liability on the part of the owner or operator of such real property. If hazardous substances are discovered on or emanating from a property, the owner or operator of the property may under certain statutory schemes be held strictly liable for all costs and liabilities relating to such hazardous substances. We have obtained a Phase I environmental study (which involves inspection without soil sampling or ground water analysis) conducted by independent environmental consultants on each of our properties and, in certain instances, have conducted additional investigation, including Phase II environmental assessments.

We have no knowledge of any hazardous substances existing on our properties in violation of any applicable laws; however, no assurance can be given that such substances are not currently located on any of our properties.

We believe that we are in compliance, in all material respects, with all federal, state and local ordinances and regulations regarding hazardous or toxic substances. Furthermore, we have not received notice from any governmental authority of any noncompliance, liability or other claim in connection with any of our properties.

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# *Americans with Disabilities Act of 1990*

Our properties, as commercial facilities, are required to comply with Title III of the Americans with Disabilities Act of 1990 and similar state and local laws and regulations (collectively, the “ADA”). Investigation of a property may reveal non-compliance with the ADA. Our tenants will typically have primary responsibility for complying with the ADA, but we may incur costs if the tenant does not comply. As of December 31, 2022, we have not received notice from any governmental authority, nor are we otherwise aware, of any non-compliance with the ADA that we believe would have a material adverse effect on our business, financial position or results of operations.

# **Human Capital**

# *Team Members and Values*

As of December 31, 2022, the Company had 76 full-time team members covering acquisitions, development, legal, asset management, accounting, finance, administrative, and executive functions as compared to 57 full-time team members as of December 31, 2021. The increased headcount is attributable to the Company’s need to support its current and future portfolio growth.

Our core values are the foundation of our Company culture and include:

- We are a team. We all roll up our sleeves and dig in, no matter the task.
- We achieve results by making consistent, disciplined decisions.
- We have a resilient mindset to achieve and exceed our goals.
- We push ourselves to be the best we can at our position and embrace the opportunities that new challenges present.

We work to attract the best talent externally to meet the current and future demands of our business. We utilize social media, professional recruiters and other organizations to find motivated and talented team members and employ competency-based behavioral interviewing techniques.

# *Talent Management*

Professional development is a cornerstone of our talent management system, and we diligently work to develop talent from within. We emphasize professional development through both technical and soft-skill development and training. To empower team members to reach their potential, the Company provides a range of on-the-job training and mentoring, knowledge sharing, continuing education and “lunch-and-learn” programs. Our talent management practices include the utilization of our core competency frameworks, professional development plans, career pathing and succession planning and carefully designed promotion and internal mobility opportunities.

Our team members goal setting and performance feedback processes include formal quarterly and annual reviews and self and team leader reviews, as well as ongoing one-on-one meetings with team leaders. Professional development plans based on critical competencies are created and monitored to ensure progress is made along established timelines.

# *Financial and Health Wellness*

As part of our compensation philosophy, we offer and maintain market competitive total rewards programs for team members in order to attract and retain superior talent. These programs not only include wages and incentives, but also health, welfare, and retirement benefits.

Our compensation philosophies include:

- Total compensation that is both fair and competitive. The Company seeks fairness in total compensation with reference to external and internal comparisons.
- Attract, retain and motivate team members. Compensation is used to achieve business objectives by attracting, retaining and motivating top talent.

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- Reward superior individual and Company performance on both a short-term and long-term basis. Performance-based pay aligns the interests of management with the interests of our stockholders and motivates and rewards individual efforts and company success.
- Align executives’ and team members’ long-term interests with those of our stockholders. The Company seeks to align these interests by providing a significant portion of executive officer compensation in the form of restricted common stock. In addition, all team members are eligible to receive a portion of compensation in the form of restricted common stock.

The structure of our compensation programs balance incentive earnings for both short-term and long-term performance. Specifically, the programs include a base salary, incentive compensation through annual cash bonuses and equity participation, and a retirement plan with Company match.

The “Agree Wellness Program” affords team members paid time off and holidays, fully equipped on-site fitness amenities, and leaves of absence for specified events. Insurance coverages are provided for all team members and their dependents, including medical, dental, vision, disability, and life insurance. The Company pays 100% of medical, short-term, long-term, and life insurance premiums for team members and their families.

### *COVID-19*

During 2022, we have continued to focus on the safety of our team members in response to the COVID-19 pandemic. To do so we have:

- When warranted, closed our offices for non-essential functions and offered remote work flexibility;
- Provided personal protective equipment and maintained cleaning protocols;
- Maintained regular communication regarding impacts of the COVID-19 pandemic, including health and safety protocols and procedures;
- Continued screening of any team members and vendors at our offices;
- Maintained protocols to address actual and suspected COVID-19 cases and potential exposure; and
- Continued employing protocols regarding required masks and social distancing

### **Environmental, Social and Governance (“ESG”)**

As part of the Company’s commitment to continuously improving our understanding of and performance across material ESG topics, the Company engaged a third-party consultant in 2022 to help identify opportunities for improvement across our programs, policies, and disclosures to meet the expectations of our stakeholders. This process resulted in a three-year action plan and roadmap for the Company to enhance its ESG program through oversight structures, risk management, policies, data collection, reporting, and stakeholder engagement.

### *Environmental Sustainability*

The Company, through its team members, understands that corporate and environmental responsibility is an ongoing endeavor and embraces responsibility to being a steward of the environment, using natural resources carefully, and meeting the goals of its tenant partners. We remain committed to using our time, talents, resources and relationships to grow in a manner that makes the world and the environment better for future generations.

The Company’s focus on industry leading, national and super-regional retailers provides for long-term relationships with some of the most environmentally conscientious retailers in the world. This is particularly meaningful because the Company’s portfolio is primarily comprised of properties that are leased to tenants under long-term net leases where the tenant is generally responsible for maintaining the property and implementing environmentally responsible practices. We are proud to know that our tenants have pioneered the use of environmentally-preferable solutions in their business practices in many ways. In 2022, the Company enhanced its engagement with its retail partners on shared sustainability initiatives, introduced green lease language into its standard lease forms, and executed leases that contained green clauses with several tenants. Additionally, the Company’s award-winning headquarters utilize green technologies including programmable thermostats, Low-E window glass, LEED HVAC systems and LED occupancy-sensored lighting.

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### ***Social Company Culture and Team Members***

The Agree Wellness Program focuses on physical and financial wellness to enhance team members' well-being. The Company believes that team members who are healthy, fit, financially secure and motivated are team members who achieve personal and professional success. Ongoing professional development is offered to help all team members advance their careers. The Company regularly sponsors local charities and has received numerous local awards recognizing its outstanding corporate culture and wellness initiatives. The Company supports healthy living through enhanced health insurance, an on-site gym, training and education, various complementary meal programs and many other benefits.

We support team members with generous cash compensation plans, equity ownership programs, retirement plans and ongoing access to financial planning resources. Team members are compensated for their performance and rewarded for their outstanding work. Alignment of individual, team, corporate and stockholder objectives provides for continuity, teamwork and increased collaboration. Our team members are paid commensurate with their qualifications, responsibilities, productivity, quality of work and adherence to our core values.

The Agree Culture Committee is composed of team members from departments throughout the organization. The Company's Culture Committee hosts a variety of events that are focused on team building and camaraderie as well as contributing to the communities in which they live.

### ***Governance Fiduciary Duties and Ethics***

We believe that nothing is more important than a company's reputation for integrity and serving as a responsible fiduciary for its stockholders. We are committed to managing the Company for the benefit of our stockholders and are focused on maintaining good corporate governance.

Our Board has nine directors, seven of whom are independent. Five new independent directors have been added since 2018. Independent directors meet regularly, without the presence of officers or team members. A Lead Independent Director was appointed in 2019.

The Board has adopted an insider trading policy that applies to all directors, officers and team members. The Company does not have a stockholder rights plan ('poison pill') and maintains stock ownership guidelines for directors and named executive officers requiring specified levels of stock ownership. Time-vested stock grants to officers and team members vest over a five-year period to provide long-term alignment, while performance-based stock grants to named executive officers utilize total shareholder return, with the amount of the grants intended to increase as total returns to stockholders increase, further enhancing alignment. Our board of directors has established a succession plan for the Chief Executive Officer to cover emergencies and other occurrences. Finally, the Company annually submits 'say-on-pay' advisory votes to its stockholders.

### **Available Information**

We make available free of charge through our website at www.agreerealty.com all reports we electronically file with, or furnish to, the SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and current reports on Form 8-K, as well as any amendments to those reports, as soon as reasonably practicable after those documents are filed with, or furnished to, the SEC. These filings are also accessible on the SEC's website at www.sec.gov.

### **Item 1A: Risk Factors**

The following factors and other factors discussed in this Annual Report on Form 10-K could cause the Company's actual results to differ materially from those contained in forward-looking statements made in this report or presented elsewhere in future SEC reports. You should carefully consider each of the risks, assumptions, uncertainties and other factors described below and elsewhere in this report, as well as any reports, amendments or updates reflected in subsequent filings or furnishings with the SEC. We believe these risks, assumptions, uncertainties and other factors, individually or in the

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aggregate, could cause our actual results to differ materially from expected and historical results and could materially and adversely affect our business operations, results of operations, financial condition and liquidity.

## Risks Related to Our Business and Operations

#### ***Economic and financial conditions may have a negative effect on our business and operations.***

Changes in global or national economic conditions, such as a market downturn or a disruption in the capital markets, may cause, among other things, a significant tightening in the credit markets, lower levels of liquidity, increases in the rate of default and bankruptcy and lower consumer spending and business spending, which could adversely affect our business and operations. Potential consequences of changes in economic and financial conditions include:

- • Changes in the performance of our tenants, which may result in lower rent and lower recoverable expenses that the tenant can afford to pay and tenant defaults under the leases;
- • Current or potential tenants may delay or postpone entering into long-term net leases with us;
- • The ability to borrow on terms and conditions that we find acceptable may be limited or unavailable, which could reduce our ability to pursue acquisition and development opportunities and refinance existing debt, reduce our returns from acquisition and development activities, reduce our ability to make cash distributions to our stockholders and increase our future interest expense;
- • Our ability to access the capital markets may be restricted at a time when we would like, or need, to access those markets, which could have an impact on our flexibility to react to changing economic and business conditions;
- • The recognition of impairment charges on or reduced values of our properties, which may adversely affect our results of operations or limit our ability to dispose of assets at attractive prices and may reduce the availability of buyer financing; and
- • One or more lenders under our revolving credit facility could fail and we may not be able to replace the financing commitment of any such lenders on favorable terms, or at all.

We are also limited in our ability to reduce costs to offset the results of a prolonged or severe economic downturn given certain fixed costs and commitments associated with our operations, which could materially impact our results of operations and/or financial condition.

#### ***Our business is significantly dependent on single tenant properties.***

We focus our development and investment activities on ownership of real properties that are primarily net leased to a single tenant. Therefore, the financial failure of, or other default in payment by, a single tenant under its lease and the potential resulting vacancy is likely to cause a significant reduction in our operating cash flows from that property and a significant reduction in the value of the property and could cause a significant impairment loss. In addition, we would be responsible for all of the operating costs of a property following a vacancy at a single tenant building. Because our properties have generally been built to suit a particular tenant's specific needs and desires, we may also incur significant losses to make the leased premises ready for another tenant and experience difficulty or a significant delay in releasing such property.

#### ***Bankruptcy laws will limit our remedies if a tenant becomes bankrupt and rejects its leases.***

If a tenant becomes bankrupt or insolvent, that could diminish the income we receive from that tenant's leases. We may not be able to evict a tenant solely because of its bankruptcy. On the other hand, a bankruptcy court might authorize the tenant to terminate its leasehold with us. If that happens, our claim against the bankrupt tenant for unpaid future rent would be an unsecured claim subject to statutory limitations, and therefore any amounts received in bankruptcy are likely to be substantially less valuable than the remaining rent we otherwise were owed under the leases. In addition, any payment on a claim we have for unpaid past rent could be substantially less than the amount owed.

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# ***Our portfolio is concentrated in certain states, which makes us more susceptible to adverse events in these areas.***

Our properties are located in 48 states throughout the United States and in particular, the state of Texas (where 124 properties out of 1,839 properties are located, or 7.3% of our annualized base rent was derived as of December 31, 2022), Ohio (122 properties, or 5.7% of our annualized base rent) Florida (116 properties, or 5.6% of our annualized base rent), Michigan (101 properties, or 5.6% of our annualized base rent), and Illinois (106 properties, or 5.5% of our annualized rent). An economic downturn or other adverse events or conditions such as natural disasters in any of these areas, or any other area where we may have significant concentration in the future, could result in a material reduction of our cash flows or material losses to our company.

# ***Our tenants are concentrated in certain retail sectors, which makes us susceptible to adverse conditions impacting these sectors.***

As of December 31, 2022, 9.1%, 8.9% and 8.9% of our annualized contractual base rent and interest were derived from tenants operating in the home improvement, grocery store, and tire and auto service sectors, respectively. Similarly, we have concentrations in other sectors such as dollar stores, convenience stores, and general merchandise. Any decrease in consumer demand for the products and services offered by our tenants operating in any industries for which we have concentrations could have an adverse effect on our tenants’ revenues, costs and results of operations, thereby adversely affecting their ability to meet their lease obligations to us. As we continue to invest in properties, our portfolio may become more or less concentrated by industry sector.

# ***There are risks associated with our development and acquisition activities.***

We intend to continue the development of new properties and to consider possible acquisitions of existing properties. We anticipate that our new developments will be financed under the revolving credit facility or other forms of financing that will result in a risk that permanent fixed rate financing on newly developed projects might not be available or would be available only on disadvantageous terms. In addition, new project development is subject to a number of risks, including risks of construction delays or cost overruns that may increase anticipated project costs. Furthermore, new project commencement risks also include receipt of zoning, occupancy, other required governmental permits and authorizations and the incurrence of development costs in connection with projects that are not pursued to completion. If permanent debt or equity financing is not available on acceptable terms to finance new development or acquisitions undertaken without permanent financing, further development activities or acquisitions might be curtailed, or cash available for distribution might be adversely affected. Acquisitions entail risks that investments will fail to perform in accordance with expectations, as well as general investment risks associated with any new real estate investment.

# ***Loss of revenues from tenants would reduce the Company's cash flow.***

Our tenants encounter significant macroeconomic, governmental and competitive forces. Adverse changes in consumer spending or consumer preferences for particular goods, services or store-based retailing could severely impact their ability to pay rent. Shifts from in-store to online shopping could increase due to changing consumer shopping patterns as well as the increase in consumer adoption and use of mobile electronic devices. This expansion of e-commerce could have an adverse impact on our tenant’s ongoing viability. The default, financial distress, bankruptcy or liquidation of one or more of our tenants could cause substantial vacancies in our property portfolio or impact our tenants’ ability to pay rent. Vacancies reduce our revenues, increase property expenses and could decrease the value of each vacant property. Upon the expiration of a lease, the tenant may choose not to renew the lease, renegotiate the economics of any option period(s) as a condition of exercising one or more of them, and/or we may not be able to release the vacant property at a comparable lease rate or without incurring additional expenditures in connection with such renewal or re-leasing. These risks could be exacerbated by a deterioration in the financial condition of any major tenant with leases in multiple locations.

# ***The availability and timing of cash dividends is uncertain.***

We expect to continue to pay regular dividends to our stockholders. However, we bear all expenses incurred by our operations, and our funds generated by operations, after deducting these expenses, may not be sufficient to cover desired

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levels of dividends to our stockholders. We cannot assure our stockholders that sufficient funds will be available to pay dividends.

The decision to declare and pay dividends on our common stock in the future, as well as the timing, amount and composition of any such future dividends, will be at the sole discretion of our board of directors and will depend on our earnings, funds from operations, liquidity, financial condition, capital requirements, contractual prohibitions, or other limitations under our indebtedness, annual dividend requirements or the REIT provisions of the Internal Revenue Code, state law and such other factors as our board of directors deems relevant. Further, we may issue new shares of common stock as compensation to our team members or in connection with public offerings or acquisitions. Any future issuances may substantially increase the cash required to pay dividends at current or higher levels.

Any preferred shares we may offer may have a fixed dividend rate that would not increase with any increases in the dividend rate of our common stock. Conversely, payment of dividends on our common stock is subject to payment in full of the dividends on any preferred shares and payment of interest on any debt securities we may offer.

If we do not maintain or increase the dividend on our common stock, it could have an adverse effect on the market price of our shares.

# ***We face risks relating to information technology and cybersecurity attacks, loss of confidential information and other business disruptions.***

We rely on information technology networks and systems, including the Internet, to process, transmit and store electronic information and to manage or support a variety of our business processes and we rely on commercially available systems, software, tools and monitoring to provide infrastructure and security for processing, transmitting and storing information. Any failure, inadequacy or interruption could materially harm our business. Furthermore, our business is subject to risks from and may be impacted by cybersecurity attacks, including attempts to gain unauthorized access to our confidential data and other electronic security breaches. Such cyber-attacks can range from individual attempts to gain unauthorized access to our information technology systems to more sophisticated security threats. While we employ a number of measures to prevent, detect and mitigate these threats, there is no guarantee such efforts will be successful in preventing a cyber-attack. Cybersecurity incidents could cause operational interruption, damage to our business relationships, private data exposure (including personally identifiable information, or proprietary and confidential information, of ours and our team members, as well as third parties) and affect the efficiency of our business operations. Any such incidents could result in legal claims or proceedings, liability or regulatory penalties under laws protecting the privacy of personal information and reduce the benefits of our technologies. Further, while we carry cyber liability insurance, such insurance may not be adequate to cover all losses related to such events.

# ***Our environmental, social and governance commitments could result in additional costs, and our inability to achieve them could have an adverse impact on our reputation and performance.***

From time to time we communicate our strategies, commitments and targets related to sustainability and other environmental, social and governance matters. These strategies, commitments and targets reflect our current plans and aspirations, and we may be unable to achieve them. We may from time to time incur additional expense to meet such targets. Any failure to meet these sustainability targets could adversely impact our business, financial condition and results of operations. In addition, standards and processes for measuring and reporting carbon emissions and other sustainability metrics may change over time, and may result in inconsistent data, or could result in significant revisions to our strategies, commitments and targets, or our ability to achieve them. Any scrutiny of our sustainability disclosures or our failure to achieve related strategies, commitments and targets could negatively impact our reputation or performance.

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# General Real Estate Risk

*Our performance and value are subject to general economic conditions and risks associated with our real estate assets.*

There are risks associated with owning and leasing real estate. Although many of our leases contain terms that obligate the tenants to bear substantially all of the costs of operating our properties, investing in real estate involves a number of risks. Income from and the value of our properties may be adversely affected by:

- • Changes in general or local economic conditions;
- • The attractiveness of our properties to potential tenants;
- • Changes in supply of or demand for similar or competing properties in an area;
- • Bankruptcies, financial difficulties or lease defaults by our tenants;
- • Changes in operating costs and expense and our ability to control rents;
- • Our ability to lease properties at favorable rental rates;
- • Our ability to sell a property when we desire to do so at a favorable price;
- • Property damage or casualty loss;
- • Impacts of climate change;
- • The potential risk of functional obsolescence of properties over time;
- • Changes in or increased costs of compliance with governmental rules, regulations and fiscal policies, including changes in the ADA and similar regulations and tax, real estate, environmental and zoning laws, and our potential liability thereunder.

Economic and financial market conditions have and may continue to exacerbate many of the foregoing risks. If a tenant fails to perform on its lease covenants, that would not excuse us from meeting any mortgage debt obligation secured by the property and could require us to fund reserves in favor of our mortgage lenders, thereby reducing funds available for payment of cash dividends on our shares of common stock.

*The fact that real estate investments are relatively illiquid may reduce economic returns to investors.*

We may desire to sell a property in the future because of changes in market conditions or poor tenant performance or to avail ourselves of other opportunities. We may also be required to sell a property in the future to meet secured debt obligations or to avoid a secured debt loan default. Real estate properties cannot generally be sold quickly, and we cannot assure you that we could always obtain a favorable price. We may be required to invest in the restoration or modification of a property before we can sell it, or we may need to obtain landlord consent to sell certain assets in which we have a leasehold interest in the land underlying the buildings. This lack of liquidity may limit our ability to vary our portfolio promptly in response to changes in economic or other conditions and, as a result, could adversely affect our financial condition, results of operations, cash flows and our ability to pay dividends on our common stock.

*Our ability to renew leases or re-lease space on favorable terms as leases expire significantly affects our business.*

We are subject to the risks that, upon expiration of leases for space located in our properties, the premises may not be re-let or the terms of re-letting (including the cost of concessions to tenants) may be less favorable than current lease terms. If a tenant does not renew its lease or if a tenant defaults on its lease obligations, there is no assurance we could obtain a substitute tenant on acceptable terms. If we cannot obtain another tenant with comparable building structural space and configuration needs, we may be required to modify the property for a different use, which may involve a significant capital expenditure and a delay in re-leasing the property. Further, if we are unable to re-let promptly all or a substantial portion of our retail space or if the rental rates upon such re-letting were significantly lower than expected rates, our net income and ability to make expected distributions to stockholders would be adversely affected. There can be no assurance that we will be able to retain tenants in any of our properties upon the expiration of their leases.

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*Our leases contain certain limitations on tenants’ real estate tax, insurance and operating cost reimbursement obligations.*

Our tenants under net leases generally are responsible for paying the real estate taxes, insurance costs and operating costs associated with the leased property. However, certain leases contain limitations on the tenant’s cost reimbursement obligations and, therefore, there are costs which may be incurred and which will not be reimbursed in full by tenants. This could reduce our operating cash flows from those properties and could reduce the value of those properties.

*Potential liability for environmental contamination could result in substantial costs.*

Under federal, state and local environmental laws, we may be required to investigate and clean up any release of hazardous or toxic substances or petroleum products at our properties, regardless of our knowledge or actual responsibility, simply because of our current or past ownership or operation of the real estate. If unidentified environmental problems arise, we may have to make substantial payments, which could adversely affect our cash flow and our ability to make distributions to our stockholders. This potential liability results from the following:

- As owner, we may have to pay for property damage and for investigation and clean-up costs incurred in connection with the contamination;
- The law may impose clean-up responsibility and liability regardless of whether the owner or operator knew of or caused the contamination;
- Even if more than one person is responsible for the contamination, each person who shares legal liability under environmental laws may be held responsible for all of the clean-up costs; and
- Governmental entities and third parties may sue the owner or operator of a contaminated site for damages and costs.

These costs could be substantial and in extreme cases could exceed the value of the contaminated property. The presence of hazardous substances or petroleum products or the failure to properly remediate contamination may adversely affect our ability to borrow against, sell or lease an affected property. In addition, some environmental laws create liens on contaminated sites in favor of the government for damages and costs it incurs in connection with a contamination.

We own and may in the future acquire properties that will be operated as convenience stores with gas station facilities. The operation of convenience stores with gas station facilities at our properties will create additional environmental concerns. Similarly, we may lease properties to users or producers of other hazardous materials. We require that the tenants who operate these facilities do so in material compliance with current laws and regulations.

A majority of our leases require our tenants to comply with environmental laws and to indemnify us against environmental liability arising from the operation of the properties. However, we could be subject to strict liability under environmental laws because we own the properties. There are certain losses, including losses from environmental liabilities, that are not generally insured against or that are not generally fully insured against because it is not deemed economically feasible or prudent to do so. There is also a risk that tenants may not satisfy their environmental compliance and indemnification obligations under the leases. Any of these events could substantially increase our cost of operations, require us to fund environmental indemnities in favor of our secured lenders and reduce our ability to service our secured debt and pay dividends to stockholders and any debt security interest payments. Environmental problems at any properties could also put us in default under loans secured by those properties, as well as loans secured by unaffected properties.

*Uninsured losses relating to real property may adversely affect our returns.*

Our leases generally require tenants to carry comprehensive liability and extended coverage insurance on our properties. However, there are certain losses, including losses from environmental liabilities, terrorist acts or catastrophic acts of nature, that are not generally insured against or that are not generally fully insured against because it is not deemed economically feasible or prudent to do so. If there is an uninsured loss or a loss in excess of insurance limits, we could lose both the revenues generated by the affected property and the capital we have invested in the property. In the event of a substantial unreimbursed loss, we would remain obligated to repay any mortgage indebtedness or other obligations related to the property.

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## **Risks Related to Our Debt Financings**

***Our level of indebtedness could materially and adversely affect our financial position, including reducing funds available for other business purposes and reducing our operational flexibility, and we may have future capital needs and may not be able to obtain additional financing on acceptable terms.***

At December 31, 2022, our ratio of total debt to enterprise value (assuming conversion of Operating Partnership Common Units into shares of common stock) was approximately 23.0%. Incurring substantial debt may adversely affect our business and operating results by:

- Requiring us to use a substantial portion of our cash flow to pay interest and principal, which reduces the amount available for distributions, acquisitions and capital expenditures;
- Making us more vulnerable to economic and industry downturns and reducing our flexibility to respond to changing business and economic conditions;
- Requiring us to agree to less favorable terms, including higher interest rates, in order to incur additional debt, and otherwise limiting our ability to borrow for operations, working capital or to finance acquisitions in the future; or
- Limiting our flexibility in conducting our business, including our ability to finance or refinance our assets, contribute assets to joint ventures or sell assets as needed, which may place us at a disadvantage compared to competitors with less debt or debt with less restrictive terms.

In addition, the use of leverage presents an additional element of risk in the event that (1) the cash flow from lease payments on our properties is insufficient to meet debt obligations, (2) we are unable to refinance our debt obligations as necessary or on as favorable terms, (3) there is an increase in interest rates, (4) we default on our financial obligations or (5) debt service requirements increase. If a property is mortgaged to secure payment of indebtedness and we are unable to meet mortgage payments, the property could be foreclosed upon with a consequential loss of income and asset value to us.

We generally intend to maintain a ratio of total indebtedness (including construction or acquisition financing) to total market capitalization of 65% or less. Nevertheless, we may operate with debt levels which are in excess of 65% of total market capitalization for extended periods of time. If our debt capitalization policy were changed, we could become more highly leveraged, resulting in an increase in debt service that could adversely affect our operating cash flow and our ability to make expected distributions to stockholders, and could result in an increased risk of default on our obligations.

***Covenants in our credit agreements and note purchase agreements could limit our flexibility and adversely affect our financial condition.***

The terms of the financing agreements and other indebtedness require us to comply with a number of customary financial and other covenants. These covenants may limit our flexibility in our operations, and breaches of these covenants could result in defaults under the instruments governing the applicable indebtedness even if we have satisfied our payment obligations. Our financing agreements contain certain cross-default provisions which could be triggered in the event that we default on our other indebtedness. These cross-default provisions may require us to repay or restructure the revolving credit facility in addition to any mortgage or other debt that is in default. If our properties were foreclosed upon, or if we are unable to refinance our indebtedness at maturity or meet our payment obligations, the amount of our distributable cash flows and our financial condition would be adversely affected.

Our unsecured revolving credit facility, certain term loan agreements and certain note purchase agreements contain various restrictive corporate covenants, including a maximum total leverage ratio, a maximum secured leverage ratio and a minimum fixed charge coverage ratio. In addition, our unsecured revolving credit facility, certain term loan agreements and certain note purchase agreements have unencumbered pool covenants, which include a maximum unencumbered leverage ratio and a minimum unencumbered interest coverage ratio. These covenants may restrict our ability to pursue certain business initiatives or certain transactions that might otherwise be advantageous. Furthermore, failure to meet certain of these financial covenants could cause an event of default under and/or accelerate some or all of such indebtedness which could have a material adverse effect on us.

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*An increase in market interest rates could raise our interest costs on existing and future debt or adversely affect our stock price, and a decrease in interest rates may lead to additional competition for the acquisition of real estate or adversely affect our results of operations.*

Our interest costs for any new debt and our current debt obligations may rise if interest rates increase. This increased cost could make the financing of any new acquisition more expensive as well as lower our current period earnings. Rising interest rates could limit our ability to refinance existing debt when it matures or cause us to pay higher interest rates upon refinancing. In addition, an increase in interest rates could decrease the access third parties have to credit, thereby decreasing the amount they are willing to pay to lease our assets and limit our ability to reposition our portfolio promptly in response to changes in economic or other conditions. An increase in market interest rates may lead prospective purchasers of our common stock to expect a higher dividend yield, which could adversely affect the market price of our common stock. Decreases in interest rates may lead to additional competition for the acquisition of real estate due to a reduction in desirable alternative income-producing investments. Increased competition for the acquisition of real estate may lead to a decrease in the yields on real estate targeted for acquisition. In such circumstances, if we are not able to offset the decrease in yields by obtaining lower interest costs on our borrowings, our results of operations may be adversely affected.

*Our hedging strategies may not be successful in mitigating our risks associated with interest rates and could reduce the overall returns on your investment.*

We use various derivative financial instruments to provide a level of protection against interest rate risks, but no hedging strategy can protect us completely. These instruments involve risks, such as the risk that the counterparties may fail to honor their obligations under these arrangements, that these arrangements may not be effective in reducing our exposure to interest rate changes, that a court could rule that such agreements are not legally enforceable, and that we may have to post collateral to enter into hedging transactions, which we may lose if we are unable to honor our obligations. These instruments may also generate income that may not be treated as qualifying REIT income for purposes of the REIT income tests. In addition, the nature and timing of hedging transactions may influence the effectiveness of our hedging strategies. Poorly designed strategies or improperly executed transactions could actually increase our risk and losses. Moreover, hedging strategies involve transaction and other costs. We cannot assure you that our hedging strategy and the derivatives that we use will adequately offset the risk of interest rate volatility or that our hedging transactions will not result in losses that may reduce the overall return on your investment.

*Future offerings of debt and equity may not be available to us or may adversely affect the market price of our common stock.*

We expect to continue to increase our capital resources by making additional offerings of equity and debt securities in the future, which could include classes or series of preferred stock, common stock and senior or subordinated notes. Our ability to raise additional capital may be restricted at a time when we would like or need, including as a result of market conditions. Future market dislocations could cause us to seek sources of potentially less attractive capital and impact our flexibility to react to changing economic and business conditions. All debt securities and other borrowings, as well as all classes or series of preferred stock, will be senior to our common stock in a liquidation of our company. Additional equity offerings could dilute our stockholders’ equity and reduce the market price of shares of our common stock. In addition, depending on the terms and pricing of an additional offering of our common stock and the value of our properties, our stockholders may experience dilution in both the book value and fair value of their shares. The market price of our common stock could decline as a result of sales of a large number of shares of our common stock in the market after an offering or the perception that such sales could occur, and this could materially and adversely affect our ability to raise capital through future offerings of equity or equity-related securities. In addition, we may issue preferred stock or other securities convertible into equity securities with a distribution preference or a liquidation preference that may limit our ability to make distributions on our common stock. Our ability to estimate the amount, timing or nature of additional offerings is limited as these factors will depend upon market conditions and other factors.

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## **Risks Related to Our Corporate Structure**

***Our charter, bylaws and Maryland law contain provisions that may delay, defer or prevent a change of control transaction.***

*Our charter contains 9.8% ownership limits.* Our charter, subject to certain exceptions, authorizes our directors to take such actions as are necessary and desirable to preserve our qualification as a REIT and contains provisions that limit any person to actual or constructive ownership of no more than 9.8% (in value or in number of shares, whichever is more restrictive) of the outstanding shares of our common stock and no more than 9.8% (in value) of the aggregate of the outstanding shares of all classes and series of our stock. Our board of directors, in its sole discretion, may exempt, subject to the satisfaction of certain conditions, any person from the ownership limits. These restrictions on transferability and ownership will not apply if our board of directors determines that it is no longer in our best interests to attempt to qualify, or to continue to qualify, as a REIT. The ownership limits may delay or impede, and we may use the ownership limits deliberately to delay or impede, a transaction or a change of control that might involve a premium price for our common stock or otherwise be in the best interest of our stockholders.

*We have a staggered board.* Our directors are divided into three classes serving three-year staggered terms. The staggering of our board of directors may discourage offers for the Company or make an acquisition more difficult, even when an acquisition may be viewed to be in the best interest of our stockholders.

*We could issue stock without stockholder approval.* Our board of directors could, without stockholder approval, issue authorized but unissued shares of our common stock or preferred stock. In addition, our board of directors could, without stockholder approval, classify or reclassify any unissued shares of our common stock or preferred stock and set the preferences, rights and other terms of such classified or reclassified shares. Our board of directors could establish a series of stock that could, depending on the terms of such series, delay, defer or prevent a transaction or change of control that might involve a premium price for our common stock or otherwise be viewed to be in the best interest of our stockholders.

*Provisions of Maryland law may limit the ability of a third party to acquire control of our company.* Certain provisions of Maryland law may have the effect of inhibiting a third party from making a proposal to acquire us or of impeding a change of control under certain circumstances that otherwise could provide the holders of shares of our common stock with the opportunity to realize a premium over the then prevailing market price of such shares, including:

- “Business combination” provisions that, subject to limitations, prohibit certain business combinations between us and an “interested stockholder” (defined generally as any person who beneficially owns 10% or more of the voting power of our shares or an affiliate thereof) for five years after the most recent date on which the stockholder becomes an interested stockholder and thereafter would require the recommendation of our board of directors and impose special appraisal rights and special stockholder voting requirements on these combinations; and
- “Control share” provisions that provide that “control shares” of our company (defined as shares which, when aggregated with other shares controlled by the stockholder, entitle the stockholder to exercise one of three increasing ranges of voting power in electing directors) acquired in a “control share acquisition” (defined as the direct or indirect acquisition of ownership or control of “control shares”) have no voting rights except to the extent approved by our stockholders by the affirmative vote of at least two-thirds of all the votes entitled to be cast on the matter, excluding all interested shares.

The business combination statute permits various exemptions from its provisions, including business combinations that are approved or exempted by the board of directors before the time that the interested stockholder becomes an interested stockholder. Our board of directors has exempted from the business combination provisions of the Maryland General Corporation Law, or MGCL, any business combination with Mr. Richard Agree or any other person acting in concert or as a group with Mr. Richard Agree.

In addition, our bylaws contain a provision exempting from the control share acquisition statute Richard Agree, Edward Rosenberg, any spouses or the foregoing, any brothers or sisters of the foregoing, any ancestors of the foregoing, any other lineal descendants of any of the foregoing, any estates of any of the foregoing, any trusts established for the benefit of any

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of the foregoing and any other entity controlled by any of the foregoing, our other officers, our team members, any of the associates or affiliates of the foregoing and any other person acting in concert of as a group with any of the foregoing.

Additionally, Title 3, Subtitle 8 of the MGCL, permits our board of directors, without stockholder approval and regardless of what is currently provided in our charter or our bylaws, to implement certain takeover defenses. These provisions may have the effect of inhibiting a third party from making an acquisition proposal for our company or of delaying, deferring or preventing a change in control of our company under circumstances that otherwise could provide the holders of our common stock with the opportunity to realize a premium over the then-current market price.

Our charter, our bylaws, the limited partnership agreement of the Operating Partnership and Maryland law also contain other provisions that may delay, defer or prevent a transaction or a change of control that might involve a premium price for our common stock or otherwise be viewed to be in the best interest of our stockholders.

*An officer and director may have interests that conflict with the interests of stockholders.*

An officer and member of our board of directors owns Operating Partnership Units. This individual may have personal interests that conflict with the interests of our stockholders with respect to business decisions affecting us and the Operating Partnership, such as interests in the timing and pricing of property sales or refinancing in order to obtain favorable tax treatment.

# **Federal Income Tax Risks**

*Complying with REIT requirements may cause us to forego otherwise attractive opportunities.*

To qualify as a REIT for federal income tax purposes we must continually satisfy numerous income, asset and other tests, thus having to forego investments we might otherwise make and hindering our investment performance.

*Failure to qualify as a REIT could adversely affect our operations and our ability to make distributions.*

We will be subject to increased taxation if we fail to qualify as a REIT for federal income tax purposes. Although we believe that we are organized and operate in such a manner so as to qualify as a REIT under the Internal Revenue Code, no assurance can be given that we will remain so qualified. Qualification as a REIT involves the application of highly technical and complex Code provisions for which there are only limited judicial or administrative interpretations. The complexity of these provisions and applicable treasury regulations is also increased in the context of a REIT that holds its assets in partnership form. The determination of various factual matters and circumstances not entirely within our control may affect our ability to qualify as a REIT. Additionally, our charter provides our board of directors with the power, under certain circumstances, to revoke or otherwise terminate our REIT election and cause us to be taxed as a regular corporation, without the approval of our stockholders. A REIT that annually distributes at least 90% of its taxable income to its stockholders generally is not taxed at the corporate level on such distributed income. We have not requested and do not plan to request a ruling from the Internal Revenue Service (the “IRS”) that we qualify as a REIT.

If we fail to qualify as a REIT, we will face tax consequences that will substantially reduce the funds available for payment of cash dividends:

- We would not be allowed a deduction for dividends paid to stockholders in computing our taxable income and would be subject to federal income tax at regular corporate rates.
- We may be subject to increased state and local taxes.
- Unless we are entitled to relief under statutory provisions, we could not elect to be treated as a REIT for four taxable years following the year in which we failed to qualify.

In addition, if we fail to qualify as a REIT, we will no longer be required to pay dividends (other than any mandatory dividends on any preferred shares we may offer). As a result of these factors, our failure to qualify as a REIT could adversely affect the market price for our common stock.

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*U.S. federal tax reform legislation could affect REITs generally, the geographic markets in which we operate, our stock and our results of operations, both positively and negatively in ways that are difficult to anticipate.*

Changes to the federal income tax laws are proposed regularly. Additionally, the REIT rules are constantly under review by persons involved in the legislative process and by the IRS and the U.S. Department of the Treasury, which may result in revisions to regulations and interpretations in addition to statutory changes. If enacted, certain such changes could have an adverse impact on our business and financial results. In particular, H.R. 1, which took effect for taxable years that began on or after January 1, 2018 (subject to certain exceptions), as amended by the Coronavirus Aid, Relief, and Economic Security Act made many significant changes to the federal income tax laws that profoundly impacted the taxation of individuals, corporations (both regular C corporations as well as corporations that have elected to be taxed as REITs), and the taxation of taxpayers with overseas assets and operations. A number of changes that affect non-corporate taxpayers will expire at the end of 2025 unless Congress acts to extend them. These changes impact us and our stockholders in various ways, some of which are adverse or potentially adverse compared to prior law. While the IRS has issued some guidance with respect to certain of the new provisions, there are numerous interpretive issues that will require further guidance, and technical corrections legislation may be needed to clarify certain aspects of the new law and give proper effect to Congressional intent. There can be no assurance, however, that technical clarifications or further changes needed to prevent unintended or unforeseen tax consequences will be enacted by Congress. In addition, while certain elements of tax reform legislation do not impact us directly as a REIT, they could impact the geographic markets in which we operate, the tenants that populate our properties and the customers who frequent our properties in ways, both positive and negative, that are difficult to anticipate. Other legislative proposals could be enacted in the future that could affect REITs and their stockholders. Prospective investors are urged to consult their tax advisors regarding the effect of these tax law changes and any other potential tax law changes on an investment in our common stock.

*Changes in tax laws may prevent us from maintaining our qualification as a REIT.*

As we have previously described, we intend to maintain our qualification as a REIT for federal income tax purposes. However, this intended qualification is based on the tax laws that are currently in effect. We are unable to predict any future changes in the tax laws that would adversely affect our status as a REIT. If there is a change in the tax law that prevents us from qualifying as a REIT or that requires REITs generally to pay corporate level income taxes, we may not be able to make the same level of distributions to our stockholders.

*Complying with REIT requirements may force us to liquidate or restructure otherwise attractive investments.*

In order to qualify as a REIT, at least 75% of the value of our assets must consist of cash, cash items, government securities and qualified real estate assets. The remainder of our investments in securities (other than government securities, securities of TRSs and qualified real estate assets) cannot include more than 10% of the voting securities or 10% of the value of all securities, of any one issuer. In addition, in general, no more than 5% of the total value of our assets (other than government securities, securities of TRSs and qualified real estate assets) can consist of securities of any one issuer, and no more than 20% of the total value of our assets can be represented by one or more TRSs. If we fail to comply with these requirements at the end of any calendar quarter, we must correct the failure within 30 days after the end of the calendar quarter or qualify for certain statutory relief provisions to avoid losing our REIT qualification and suffering adverse tax consequences. As a result, we may be required to liquidate otherwise attractive investments.

*We may have to borrow funds or sell assets to meet our distribution requirements.*

Subject to some adjustments that are unique to REITs, a REIT generally must distribute 90% of its taxable income. For the purpose of determining taxable income, we may be required to accrue interest, rent and other items treated as earned for tax purposes but that we have not yet received. In addition, we may be required not to accrue as expenses for tax purposes some expenses that actually have been paid, including, for example, payments of principal on our debt, or some of our deductions might be disallowed by the IRS. As a result, we could have taxable income in excess of cash available for distribution. If this occurs, we may have to borrow funds or liquidate some of our assets in order to meet the distribution requirement applicable to a REIT.

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*Our ownership of and relationship with our TRSs will be limited, and a failure to comply with the limits would jeopardize our REIT status and may result in the application of a 100% excise tax.*

A REIT may own up to 100% of the stock of one or more TRSs. A TRS may earn income that would not be qualifying income if earned directly by the parent REIT. Overall, no more than 20% of the value of a REIT’s assets may consist of stock or securities of one or more TRSs. A TRS will typically pay federal, state and local income tax at regular corporate rates on any income that it earns. In addition, the TRS rules impose a 100% excise tax on certain transactions between a TRS and its parent REIT that are not conducted on an arm’s-length basis. Our TRSs will pay federal, state and local income tax on their taxable income, and their after-tax net income will be available for distribution to us but will not be required to be distributed to us. There can be no assurance that we will be able to comply with the 20% limitation discussed above or to avoid application of the 100% excise tax discussed above.

*Liquidation of our assets may jeopardize our REIT qualification.*

To qualify as a REIT, we must comply with requirements regarding our assets and our sources of income. If we are compelled to liquidate our investments to repay obligations to our lenders, we may be unable to comply with these requirements, ultimately jeopardizing our qualification as a REIT, or we may be subject to a 100% tax on any gain if we sell assets in transactions that are considered to be “prohibited transactions,” which are explained in the risk factor below.

*We may be subject to other tax liabilities even if we qualify as a REIT.*

Even if we remain qualified as a REIT for federal income tax purposes, we will be required to pay certain federal, state and local taxes on our income and property. For example, we will be subject to federal income tax on any of our REIT taxable income (including capital gains) that we do not distribute annually to our stockholders. Additionally, we will be subject to a 4% nondeductible excise tax on the amount, if any, by which dividends paid by us in any calendar year are less than the sum of 85% of our ordinary income, 95% of our capital gain net income and 100% of our undistributed income from prior years. Moreover, if we have net income from “prohibited transactions,” that income will be subject to a 100% tax. In general, prohibited transactions are sales or other dispositions of property held primarily for sale to customers in the ordinary course of business. The determination as to whether a particular sale is a prohibited transaction depends on the facts and circumstances related to that sale. While we will undertake sales of assets if those assets become inconsistent with our long-term strategic or return objectives, we do not believe that those sales should be considered prohibited transactions, but there can be no assurance that the IRS would not contend otherwise. The need to avoid prohibited transactions could cause us to forego or defer sales of properties that might otherwise be in our best interest to sell.

In addition, any net taxable income earned directly by our TRSs, or through entities that are disregarded for federal income tax purposes as entities separate from our TRSs, will be subject to federal and possibly state corporate income tax. To the extent that we and our affiliates are required to pay federal, state and local taxes, we will have less cash available for distributions to our stockholders.

*Dividends payable by REITs do not qualify for the reduced tax rates on dividend income from regular corporations.*

The maximum federal income tax rate applicable to “qualified dividend income” payable by non-REIT corporations to certain non-corporate U.S. stockholders is generally 20% and a 3.8% Medicare tax may also apply. Dividends paid by REITs, however, generally are not eligible for the reduced rates applicable to qualified dividend income. Commencing with taxable years that began on or after January 1, 2018 and continuing through 2025, H.R. 1 temporarily reduced the effective tax rate on ordinary REIT dividends (i.e., dividends other than capital gain dividends and dividends attributable to certain qualified dividend income received by us) for U.S. holders of our common stock that are individuals, estates or trusts by permitting such holders to claim a deduction in determining their taxable income equal to 20% of any such dividends they receive. Taking into account H.R. 1’s reduction in the maximum individual federal income tax rate from 39.6% to 37%, this results in a maximum effective rate of regular income tax on ordinary REIT dividends of 29.6% through 2025 (as compared to the 20% maximum federal income tax rate applicable to qualified dividend income received from a non-REIT corporation). The more favorable rates applicable to regular corporate distributions could cause investors who are individuals to perceive investments in REITs to be relatively less attractive than investments in the stocks of non-REIT

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corporations that pay distributions. This could materially and adversely affect the value of the stock of REITs, including our common stock.

# ***Complying with REIT requirements may limit our ability to hedge effectively and may cause us to incur tax liabilities.***

The REIT provisions of the Internal Revenue Code substantially limit our ability to hedge our liabilities. Any income from a hedging transaction we enter into to manage risk of interest rate changes, price changes or currency fluctuations with respect to borrowings made or to be made to acquire or carry real estate assets that is clearly identified in the manner specified in the Internal Revenue Code does not constitute gross income, and is not counted for purposes of income tests that apply to us as a REIT. To the extent that we enter into other types of hedging transactions, the income from those transactions is likely to be treated as non-qualifying income for purposes of the income tests. As a result of these rules, we may need to limit our use of advantageous hedging techniques or implement those hedges through a TRS. This could increase the cost of our hedging activities because our TRS would be subject to tax on gains or expose us to greater risks associated with changes in interest rates than we would otherwise want to bear. In addition, losses in our TRSs will generally not provide any tax benefit, except for being carried forward against future taxable income in the TRSs.

# **General Risks**

# ***Loss of our key personnel could materially impair our ability to operate successfully.***

Our continued success and our ability to manage anticipated future growth depend, in large part, upon the efforts of key personnel. The loss of services of one or more members of our senior management team, or our inability to attract and retain highly qualified personnel, could adversely affect our business, diminish our investment opportunities and our relationships with lenders, business partners, existing and prospective tenants and industry personnel, which could materially and adversely affect us.

# ***If we fail to maintain an effective system of internal controls, we may not be able to accurately report financial results, which could result in a loss of investor confidence and adversely affect the market price of our common stock.***

We are required to establish and maintain internal control over financial reporting and disclosure controls and procedures. Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with generally accepted accounting principles. Disclosure controls and procedures are processes designed to ensure that information required to be disclosed is communicated to management and reported in a timely manner. We cannot be certain that we will be successful in continuing to maintain adequate control over our financial reporting and disclosure controls and procedures. Deficiencies, including any material weakness, in our internal control over financial reporting that may occur could result in misstatements or restatements of our financial statements or a decline in the price of our securities. In addition, as our business continues to grow, and as we continue to make significant acquisitions, our internal controls will become more complex and may require significantly more resources to ensure that our disclosure controls and procedures remain effective. Moreover, the existence of any material weakness or significant deficiency in our internal controls and procedures may require management to devote significant time and incur significant expense to remediate any such material weaknesses or significant deficiencies and management may not be able to remediate any such material weaknesses or significant deficiencies in a timely manner. If we cannot provide reliable financial reports, our reputation and operating results could be materially adversely affected, which could also cause investors to lose confidence in our reported financial information, which in turn could result in a reduction in the trading price of our common stock.

# ***The market price and trading volume of shares of our common stock may fluctuate or decline.***

The market price and trading volume of our common stock may fluctuate widely due to various factors, including:

- Market reaction to any additional indebtedness we incur or debt or equity securities we or the Operating Partnership issue in the future;

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- Changes in our credit ratings;
- The financial condition, performance and prospects of our tenants;
- Changes in market interest rates; and
- The realization of any of the other risk factors presented in this Annual Report on Form 10-K.

Many of the factors listed above are beyond our control. Those factors may cause the market price of our common stock to decline significantly, regardless of our financial condition, results of operations and prospects. It is impossible to provide any assurance that the market price of our common stock will not fall in the future, and it may be difficult for holders to resell shares of our common stock at prices they find attractive, or at all.

*The COVID-19 pandemic, its variants, and the future outbreak of other highly infectious or contagious diseases, could materially and adversely impact or disrupt our financial condition, results of operations, cash flows and performance.*

The COVID-19 pandemic, including continued spread of new variants, has had, and other pandemics in the future could have, repercussions across regional and global economies and financial markets.

The COVID-19 pandemic, or a future pandemic, could also have material and adverse effects on our ability to successfully operate and on our financial condition, results of operations and cash flows due to, among other factors:

- A complete or partial closure of, or other operational issues at, one or more of our properties resulting from government or tenant action;
- Reduced economic activity could severely impact our tenants' businesses, financial condition and liquidity and may cause one or more of our tenants to be unable to meet their obligations to us in full, or at all, or to otherwise seek modifications of such obligations;
- Reduced economic activity could result in a prolonged recession, which could negatively impact consumer discretionary spending;
- Difficulty accessing debt and equity capital on attractive terms, or at all, potential impacts to our credit ratings, and a prolonged severe disruption and instability in the global financial markets or deteriorations in credit and financing conditions may affect our access to capital necessary to fund business operations or address maturing liabilities on a timely basis and our tenants' ability to fund their business operations and meet their obligations to us;
- Negative impacts to our future compliance with financial covenants of our Revolving Credit Facility and other debt agreements could result in a default and potentially an acceleration of indebtedness, which non-compliance could negatively impact our ability to make additional borrowings under our Revolving Credit Facility and pay dividends;
- Any impairment in value of our tangible or intangible assets which could be recorded as a result of weaker economic conditions;
- A decline in business activity and demand for real estate transactions could adversely affect our ability or desire to grow our portfolio of properties;
- A deterioration in our or our tenants' ability to operate in affected areas or delays in the supply of products or services to us or our tenants from vendors that are needed for our or our tenants' efficient operations could adversely affect our operations and those of our tenants; and
- The potential negative impact on the health of our personnel, particularly if a significant number of them are impacted, could result in a deterioration in our ability to ensure business continuity during this disruption.

The extent to which the COVID-19 pandemic, or a future pandemic, impacts our operations and those of our tenants will depend on future developments, which are highly uncertain and cannot be predicted with confidence.

The rapid development and fluidity of the COVID-19 pandemic, or a future pandemic, precludes any prediction as to the full adverse impacts on our business. Nevertheless, the COVID-19 pandemic, of a future pandemic, presents a material uncertainty and risk with respect to our financial condition, results of operations, cash flows and performance.

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# **Item 1B: Unresolved Staff Comments**

There are no unresolved staff comments.

# **Item 2: Properties**

As of December 31, 2022, our portfolio consisted of 1,839 properties located in 48 states and totaling approximately 38.1 million square feet of GLA.

As of December 31, 2022, our portfolio was approximately 99.7% leased and had a weighted average remaining lease term of approximately 8.8 years. A significant majority of our properties are leased to national tenants and approximately 67.8% of our annualized base rent was derived from tenants, or parents thereof, with an investment grade credit rating. Substantially all of our tenants are subject to net lease agreements. A net lease typically requires the tenant to be responsible for minimum monthly rent and property operating expenses including property taxes, insurance and maintenance. In addition, our tenants are typically subject to future rent increases based on fixed amounts or increases in the consumer price index and certain leases provide for additional rent calculated as a percentage of the tenants’ gross sales above a specified level.

# **Tenant Diversification**

The following table presents annualized base rents for all tenants that generated 1.5% or greater of our total annualized base rent as of December 31, 2022:

($ in thousands)

| Tenant / Concept | Annualized Base Rent (1) | % of Ann. Base Rent |
| --- | --- | --- |
| Walmart | $31,924 | 6.8% |
| Dollar General | 23,465 | 5.0% |
| Tractor Supply | 20,649 | 4.4% |
| Best Buy | 19,515 | 4.1% |
| Dollar Tree | 14,240 | 3.0% |
| TJX Companies | 14,216 | 3.0% |
| O’Reilly Auto Parts | 14,137 | 3.0% |
| CVS | 14,117 | 3.0% |
| Kroger | 12,856 | 2.7% |
| Lowe’s | 12,210 | 2.6% |
| Hobby Lobby | 11,904 | 2.5% |
| Burlington | 11,408 | 2.4% |
| Sherwin-Williams | 10,849 | 2.3% |
| Sunbelt Rentals | 10,072 | 2.1% |
| Wawa | 9,668 | 2.1% |
| Home Depot | 8,880 | 1.9% |
| TBC Corporation | 8,437 | 1.8% |
| Gerber Collision | 7,538 | 1.6% |
| Goodyear | 7,522 | 1.6% |
| AutoZone | 7,466 | 1.6% |
| Other (2) | 199,342 | 42.5% |
| Total | $470,415 | 100.0% |

(1) Represents annualized contractual base rent on a straight-line basis as of December 31, 2022.

(2) Includes tenants generating less than 1.5% of annualized contractual base rent.

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## Tenant Sector Diversification

The following table presents annualized base rents for all sectors as of December 31, 2022:

($ in thousands)

| Tenant Sector | Annualized Base Rent (1) | % of Ann. Base Rent |
| --- | --- | --- |
| Home Improvement | $42,754 | 9.1% |
| Grocery Stores | 41,884 | 8.9% |
| Tire and Auto Service | 41,612 | 8.9% |
| Dollar Stores | 36,241 | 7.7% |
| Convenience Stores | 35,842 | 7.6% |
| General Merchandise | 30,476 | 6.5% |
| Off-Price Retail | 28,782 | 6.1% |
| Auto Parts | 27,301 | 5.8% |
| Farm and Rural Supply | 22,187 | 4.7% |
| Consumer Electronics | 21,723 | 4.6% |
| Pharmacy | 20,823 | 4.4% |
| Crafts and Novelties | 14,208 | 3.0% |
| Discount Stores | 11,212 | 2.4% |
| Equipment Rental | 10,398 | 2.2% |
| Warehouse Clubs | 10,100 | 2.2% |
| Health Services | 9,496 | 2.0% |
| Health and Fitness | 8,082 | 1.7% |
| Restaurants - Quick Service | 7,931 | 1.7% |
| Dealerships | 6,506 | 1.4% |
| Specialty Retail | 6,306 | 1.3% |
| Restaurants - Casual Dining | 5,243 | 1.1% |
| Home Furnishings | 4,898 | 1.0% |
| Sporting Goods | 4,835 | 1.0% |
| Financial Services | 4,606 | 1.0% |
| Theaters | 3,848 | 0.8% |
| Pet Supplies | 3,146 | 0.7% |
| Entertainment Retail | 2,323 | 0.5% |
| Beauty and Cosmetics | 2,259 | 0.5% |
| Shoes | 2,005 | 0.4% |
| Apparel | 1,418 | 0.3% |
| Miscellaneous | 1,175 | 0.3% |
| Office Supplies | 795 | 0.2% |
| Total | $470,415 | 100.0% |

(1) Represents annualized contractual base rent on a straight-line basis as of December 31, 2022.

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## Geographic Diversification

The following table presents annualized base rents, by state, for our portfolio as of December 31, 2022:

($ in thousands)

| Tenant Sector | Annualized Base Rent (1) | % of Ann. Base Rent |
| --- | --- | --- |
| Texas | $34,202 | 7.3% |
| Ohio | 26,661 | 5.7% |
| Florida | 26,317 | 5.6% |
| Michigan | 26,139 | 5.6% |
| Illinois | 26,069 | 5.5% |
| North Carolina | 25,095 | 5.3% |
| New Jersey | 22,198 | 4.7% |
| Pennsylvania | 22,097 | 4.7% |
| California | 20,010 | 4.3% |
| New York | 18,992 | 4.0% |
| Georgia | 16,174 | 3.4% |
| Virginia | 14,415 | 3.1% |
| Connecticut | 12,618 | 2.7% |
| Wisconsin | 12,356 | 2.6% |
| Other(2) | 167,072 | 35.5% |
| Total | $470,415 | 100.0% |

(1) Represents annualized contractual base rent on a straight-line basis as of December 31, 2022.

(2) Includes states generating less than 2.5% of annualized contractual base rent.

## Lease Expirations

The following table presents contractual lease expirations within the Company's portfolio as of December 31, 2022, assuming that no tenants exercise renewal options:

($ and GLA in thousands)

| Year | Number of Leases | Annualized Base Rent (1) |  | Gross Leasable Area |  |
| --- | --- | --- | --- | --- | --- |
|  |  | Dollars | % of Total | Square Feet | % of Total |
| 2023 | 33 | $6,083 | 1.3% | 714 | 1.9% |
| 2024 | 47 | 13,963 | 3.0% | 1,623 | 4.3% |
| 2025 | 71 | 17,582 | 3.7% | 1,688 | 4.4% |
| 2026 | 114 | 24,966 | 5.3% | 2,657 | 7.0% |
| 2027 | 131 | 30,453 | 6.5% | 2,881 | 7.6% |
| 2028 | 142 | 36,855 | 7.8% | 3,350 | 8.8% |
| 2029 | 158 | 43,537 | 9.3% | 4,285 | 11.2% |
| 2030 | 253 | 52,183 | 11.1% | 3,962 | 10.4% |
| 2031 | 164 | 38,612 | 8.2% | 2,821 | 7.4% |
| 2032 | 198 | 39,170 | 8.3% | 3,051 | 8.0% |
| Thereafter | 678 | 167,011 | 35.5% | 11,001 | 29.0% |
| Total | 1,989 | $470,415 | 100.0% | 38,033 | 100.0% |

(1) Represents annualized contractual base rent on a straight-line basis as of December 31, 2022.

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## Developments

During the fourth quarter, the Company commenced six development and PCS projects, with total anticipated costs of approximately $37.3 million. Construction continued during the quarter on 18 projects with anticipated costs totaling approximately $58.6 million. The Company completed two projects during the quarter, which include a Gerber Collision in Kimberly, Wisconsin and a Sunbelt Rentals in Roxana, Illinois.

During the year ended December 31, 2022, the Company had 31 development or PCS projects completed or under construction. Anticipated total costs for those projects are approximately $118.5 million and include the following completed or commenced projects:

| Tenant | Location | Lease Structure | Lease Term | Actual or Anticipated Rent Commencement | Status |
| --- | --- | --- | --- | --- | --- |
| 7-Eleven | Saginaw, MI | Build-to-Suit | 15 years | Q1 2022 | Complete |
| Gerber Collision | Pooler, GA | Build-to-Suit | 15 years | Q2 2022 | Complete |
| Burlington | Turnersville, NJ | Build-to-Suit | 10 years | Q3 2022 | Complete |
| Gerber Collision | Janesville, WI | Build-to-Suit | 15 years | Q3 2022 | Complete |
| Gerber Collision | New Port Richey, FL | Build-to-Suit | 15 years | Q3 2022 | Complete |
| Gerber Collision | Kimberly, WI | Build-to-Suit | 15 years | Q4 2022 | Complete |
| Sunbelt Rentals | Roxana, IL | Build-to-Suit | 10 years | Q4 2022 | Complete |
| Gerber Collision | Fort Wayne, IN | Build-to-Suit | 15 years | Q1 2023 | Under Construction |
| Gerber Collision | Johnson City, NY | Build-to-Suit | 15 years | Q1 2023 | Under Construction |
| Gerber Collision | Joplin, MO | Build-to-Suit | 15 years | Q1 2023 | Under Construction |
| Gerber Collision | Lake Charles, LA | Build-to-Suit | 15 years | Q1 2023 | Under Construction |
| Gerber Collision | Lake Park, FL | Build-to-Suit | 15 years | Q1 2023 | Under Construction |
| Gerber Collision | McDonough, GA | Build-to-Suit | 15 years | Q1 2023 | Under Construction |
| Gerber Collision | Murrieta, CA | Build-to-Suit | 15 years | Q1 2023 | Under Construction |
| Gerber Collision | Ocala, FL | Build-to-Suit | 15 years | Q1 2023 | Under Construction |
| Gerber Collision | Toledo, OH | Build-to-Suit | 15 years | Q1 2023 | Under Construction |
| Gerber Collision | Venice, FL | Build-to-Suit | 15 years | Q1 2023 | Under Construction |
| Gerber Collision | Winterville, NC | Build-to-Suit | 15 years | Q1 2023 | Under Construction |
| Gerber Collision | Woodstock, IL | Build-to-Suit | 15 years | Q1 2023 | Under Construction |
| Gerber Collision | Yorkville, IL | Build-to-Suit | 15 years | Q1 2023 | Under Construction |
| Sunbelt Rentals | St. Louis, MO | Build-to-Suit | 7 years | Q1 2023 | Under Construction |
| Gerber Collision | Huntley, IL | Build-to-Suit | 15 years | Q2 2023 | Under Construction |
| Gerber Collision | Lawrence, PA | Build-to-Suit | 15 years | Q2 2023 | Under Construction |
| Gerber Collision | Springfield, MO | Build-to-Suit | 15 years | Q2 2023 | Under Construction |
| HomeGoods | South Elgin, IL | Build-to-Suit | 10 years | Q2 2023 | Under Construction |
| Old Navy | Searcy, AR | Build-to-Suit | 7 years | Q2 2023 | Under Construction |
| Burlington | Brenham, TX | Build-to-Suit | 10 years | Q3 2023 | Under Construction |
| Ulta Beauty | Brenham, TX | Build-to-Suit | 10 years | Q3 2023 | Under Construction |
| Five Below | Onalaska, WI | Build-to-Suit | 10 years | Q3 2023 | Under Construction |
| HomeGoods | Onalaska, WI | Build-to-Suit | 10 years | Q3 2023 | Under Construction |
| Sierra Trading Post | Onalaska, WI | Build-to-Suit | 10 years | Q3 2023 | Under Construction |
| TJ Maxx | Onalaska, WI | Build-to-Suit | 10 years | Q3 2023 | Under Construction |
| Ulta Beauty | Onalaska, WI | Build-to-Suit | 11 years | Q3 2023 | Under Construction |
| Gerber Collision | Blue Springs, MO | Build-to-Suit | 15 years | Q3 2023 | Under Construction |
| Gerber Collision | Muskegon, MI | Build-to-Suit | 15 years | Q3 2023 | Under Construction |
| Sunbelt Rentals | Wentzville, MO | Build-to-Suit | 12 years | Q3 2023 | Under Construction |

### Item 3: Legal Proceedings

From time to time, we are involved in legal proceedings in the ordinary course of business. We are not presently involved in any litigation nor, to our knowledge, is any other litigation threatened against us, other than routine litigation arising in

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the ordinary course of business, which is expected to be covered by our liability insurance and all of which collectively is not expected to have a material adverse effect on our liquidity, results of operations or business or financial condition.

# **Item 4: Mine Safety Disclosures**

Not applicable.

# **PART II**

# **Item 5: Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities**

# **Market Information and Dividend Policy**

Our common stock is traded on the NYSE under the symbol “ADC.” At February 13, 2023, there were 90,173,424 shares of our common stock issued and outstanding which were held by approximately 139 stockholders of record. The number of stockholders of record does not reflect persons or entities that held their shares in nominee or “street” name. In addition, at February 13, 2023 there were 347,619 outstanding Operating Partnership Common Units held by a limited partner other than our Company. The Operating Partnership Common Units are exchangeable into shares of common stock on a one-for-one basis.

We intend to continue to declare regular dividends. However, our distributions are determined by our board of directors and will depend upon cash generated by operating activities, our financial condition, capital requirements, annual distribution requirements under the REIT provisions of the Internal Revenue Code and such other factors as the board of directors deems relevant. We have historically paid cash dividends, although we may choose to pay a portion in stock dividends in the future. To qualify as a REIT, we must distribute at least 90% of our REIT taxable income prior to net capital gains to our stockholders, as well as meet certain other requirements. We must pay these distributions in the taxable year the income is recognized; or in the following taxable year if they are declared during the last three months of the taxable year, payable to stockholders of record on a specified date during such period and paid during January of the following year. Such distributions are treated for REIT tax purposes as paid by us and received by our stockholders on December 31 of the year in which they are declared. In addition, at our election, a distribution for a taxable year may be declared in the following taxable year if it is declared before we timely file our tax return for such year and if paid on or before the first regular dividend payment after such declaration. These distributions qualify as dividends paid for the 90% REIT distribution test for the previous year and are taxable to holders of our capital stock in the year in which paid.

# **Purchases of Equity Securities by the Issuer**

Common stock repurchases during the three months ended December 31, 2022 were:

| Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs |
| --- | --- | --- | --- | --- |
| October 1, 2022 - October 31, 2022 | - | $ - | - | - |
| November 1, 2022 - November 30, 2022 | 82 | 69.31 | - | - |
| December 1, 2022 - December 31, 2022 | 172 | 70.20 | - | - |
| Total | 254 | $69.91 | - | - |

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During the three months ended December 31, 2022, the Company withheld 254 shares from employees to satisfy estimated statutory income tax obligations related to vesting of restricted stock awards. The value of the common stock withheld was based on the closing price of our common stock on the applicable vesting date.

### **Recent Sales of Unregistered Securities**

There were no unregistered sales of equity securities during the three months ended December 31, 2022.

### **Equity Compensation Plans**

For information about our equity compensation plan, please see “Item 12 - Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters” of this Annual Report on Form 10-K.

#### **Item 6: [Reserved]**

#### **Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations**

The following discussion should be read in conjunction with the consolidated financial statements, and related notes thereto, included elsewhere in this Annual Report on Form 10-K and the “Cautionary Note Regarding Forward-Looking Statements” in “Item 1A - Risk Factors” above. Also refer to “Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s previously filed Annual Report on Form 10-K for the year ended December 31, 2021 for additional discussion of our financial condition and results of operations, including a comparison of our results of operations for the years ended December 31, 2021 and December 31, 2020.

### **Overview**

The Company is a fully integrated REIT primarily focused on the ownership, acquisition, development and management of retail properties net leased to industry leading tenants. The Company was founded in 1971 by its current Executive Chairman, Richard Agree, and its common stock was listed on the NYSE in 1994. The Company’s assets are held by, and all of its operations are conducted through, directly or indirectly, the Operating Partnership, of which the Company is the sole general partner and in which the Company held a 99.6% common interest as of December 31, 2022. Refer to *Note 1-Organization* in the Notes to the Consolidated Financial Statements in this Form 10-K for further information on the ownership structure. Under the agreement of limited partnership of the Operating Partnership, the Company, as the sole general partner, has exclusive responsibility and discretion in the management and control of the Operating Partnership.

As of December 31, 2022, the Company’s portfolio consisted of 1,839 properties located in 48 states and totaling approximately 38.1 million square feet of GLA. The Company’s portfolio was approximately 99.7% leased and had a weighted average remaining lease term of approximately 8.8 years. A significant majority of the Company’s properties are leased to national tenants and approximately 67.8% of our annualized base rent was derived from tenants, or parent entities thereof, with an investment grade credit rating from S&P Global Ratings, Moody’s Investors Service, Fitch Ratings or the National Association of Insurance Commissioners. A net lease typically requires the tenant to be responsible for minimum monthly rent and property operating expenses including property taxes, insurance and maintenance.

The Company elected to be taxed as a REIT for federal income tax purposes commencing with the taxable year ended December 31, 1994. We believe that we have been organized and have operated in a manner that has allowed us to qualify as a REIT for federal income tax purposes and we intend to continue operating in such a manner.

### **Results of Operations**

#### ***Overall***

The Company’s real estate investment portfolio grew from approximately $4.37 billion in net investment amount representing 1,404 properties with 29.1 million square feet of gross leasable space as of December 31, 2021 to

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approximately $5.74 billion in net investment amount representing 1,839 properties with 38.1 million square feet of gross leasable space at December 31, 2022. The Company’s real estate investments were made throughout the periods presented and were not all outstanding for the entire period; accordingly, a portion of the increase in rental income between periods is related to recognizing revenue in 2022 on acquisitions that were made during 2021. Similarly, the full rental income impact of acquisitions made during 2022 will not be seen until 2023.

### *Acquisitions*

During the year ended December 31, 2022, the Company acquired 434 retail net lease assets for approximately $1.6 billion, which includes acquisition and closing costs. These properties are located in 43 states and are leased to tenants operating in 27 diverse retail sectors for a weighted average lease term of approximately 10.2 years. The underwritten weighted-average capitalization rate on the acquisitions was 6.2%.$^{1}$

### *Dispositions*

During the year ended December 31, 2022, the Company sold seven assets for net proceeds of $44.9 million. The weighted-average capitalization rate on the dispositions was 6.5%.$^{1}$

### *Development and Partner Capital Solutions*

During the year ended December 31, 2022, the Company commenced 28 development or PCS projects. At December 31, 2022 the Company had 24 development or Partner Capital Solutions projects under construction.

### *Comparison of Year Ended December 31, 2022 to Year Ended December 31, 2021*

|  | Year Ended |  | Variance |  |
| --- | --- | --- | --- | --- |
|  | December 31, 2022 | December 31, 2021 | (in dollars) | (percentage) |
| Rental Income | $429,632 | $339,067 | $90,565 | 27% |
| Real Estate Tax Expense | $32,079 | $25,513 | $6,566 | 26% |
| Property Operating Expense | $18,585 | $13,996 | $4,589 | 33% |
| Depreciation and Amortization Expense | $133,570 | $95,729 | $37,841 | 40% |

The variances in rental income, real estate tax expense, property operating expense and depreciation and amortization expense shown above were due to the acquisition and the ownership of an increased number of properties during the year ended December 31, 2022 compared to the year ended December 31, 2021, as further described under *Results of Operations - Overall* above.

General and administrative expenses increased $4.6 million, or 18%, to $30.1 million for the year ended December 31, 2022, compared to $25.5 million for the year ended December 31, 2021. The increase was primarily the result of increased employee headcount and increased compensation costs. General and administrative expenses as a percentage of total revenue decreased to 7.0% for the year ended December 31, 2022 compared to 7.5% for the year ended December 31, 2021.

Provision for impairment decreased to $1.0 million for the year ended December 31, 2022, compared to $1.9 million for the year ended December 31, 2021. Provisions for impairment are recorded when events or changes in circumstances indicate that the carrying amount may not be recoverable through operations plus estimated disposition proceeds and are not necessarily comparable period-to-period.

Interest expense increased $13.0 million, or 26%, to $63.4 million for the year ended December 31, 2022, compared to $50.4 million for the year ended December 31, 2021. The increase in interest expense was primarily a result of higher levels of borrowings in 2022 in comparison to 2021, as well as higher interest rates under the Revolving Credit Facility.

$^{1}$ When used within this discussion, “weighted average capitalization rate” for acquisitions and dispositions is defined by the Company as the sum of contractual fixed annual rents computed on a straight-line basis over the primary lease terms and anticipated annual net tenant recoveries, divided by the purchase and sale prices for occupied properties.

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Borrowings increased in order to finance the acquisition and development of additional properties (see *Liquidity and Capital Resources - Debt* below).

Gain on sale of assets decreased to $5.3 million for the year ended December 31, 2022, compared to $14.9 million for the year ended December 31, 2021. Gains on sales of assets are dependent on the levels of disposition activity and the assets’ basis relative to their sales prices. As a result, such gains are not necessarily comparable period-to-period.

Income tax expense increased $0.5 million, or 19%, to $2.9 million for the year ended December 31, 2022, compared to $2.4 million for the year ended December 31, 2021. The increase in income tax expense was due to the acquisitions and the ownership of an increased number of properties during the year ended December 31, 2022 compared to 2021, partially offset by additional tax expense of approximately $0.5 million recognized during 2021 relating to the true-up of expense upon filing of the 2020 annual tax returns.

In May 2021, the Company used the net proceeds from the offering of the 2028 Senior Unsecured Public Notes and the 2033 Senior Unsecured Public Notes to repay all amounts outstanding under its unsecured term loans and settle the related swap agreements. The Company incurred a charge of $14.6 million upon this repayment and settlement, including swap termination costs of $13.4 million and the write-off of previously unamortized debt issuance costs of $1.2 million.

Net income increased $30.1 million, or 25%, to $153.0 million for the year ended December 31, 2022, compared to $122.9 million for the year ended December 31, 2021. The increase was primarily driven by the growth of our portfolio during the year ended December 31, 2022, and the repayment and settlement charge in 2021 discussed above. After allocation of income to non-controlling interest and preferred stockholders, net income attributable to common stockholders increased $24.9 million, or 21% to $145.0 million for the year ended December 31, 2022, compared to $120.1 million for the year ended December 31, 2021. The allocation of income to the preferred stockholders began upon the September 2021 issuance of the Series A Preferred Stock.

## Liquidity and Capital Resources

The Company’s principal demands for funds include payment of operating expenses, payment of principal and interest on our outstanding indebtedness, dividends and distributions to its stockholders and holders of the units of the Operating Partnership (the “Operating Partnership Common Units”), and future property acquisitions and development.

The Company expects to meet its short-term liquidity requirements through cash provided from operations and borrowings under its revolving credit facility. As of December 31, 2022, available cash and cash equivalents, including cash held in escrow, was $28.9 million. As of December 31, 2022, the Company had $100.0 million outstanding on its revolving credit facility and $900.0 million was available for future borrowings, subject to its compliance with covenants. The Company anticipates funding its long-term capital needs through cash provided from operations, borrowings under its revolving credit facility, the issuance of debt and common or preferred equity or other instruments convertible into or exchangeable for common or preferred equity.

We continually evaluate alternative financing and believe that we can obtain financing on reasonable terms. However, there can be no assurance that additional financing or capital will be available, or that the terms will be acceptable or advantageous to us. Our ability to access capital on favorable terms as well as to use cash from operations to continue to meet our liquidity needs, is uncertain and cannot be predicted and could be affected by various risks and uncertainties, including, but not limited to, risks detailed in Part I, Item 1A, “Risk Factors.” Factors.'

## Capitalization

As of December 31, 2022, the Company’s total enterprise value was approximately $8.53 billion. Total enterprise value consisted of $6.42 billion of common equity (based on the December 31, 2022 closing price of Company common stock on the NYSE of $70.93 per share and assuming the conversion of Operating Partnership Common Units), $175 million of preferred equity (stated at liquidation value), and $1.96 billion of total debt including (i) $100.0 million of borrowings under its revolving credit facility; (ii) $1.81 billion of senior unsecured notes; (iii) $50.4 million of mortgage notes payable;

30

less $28.9 million cash, cash equivalents, and cash held in escrow. The Company’s ratio of total debt to total enterprise value was 23.0% at December 31, 2022.

At December 31, 2022, the non-controlling interest in the Operating Partnership consisted of a 0.4% common ownership interest in the Operating Partnership. The Operating Partnership Common Units may, under certain circumstances, be exchanged for shares of Company common stock on a one-for-one basis. The Company, as sole general partner of the Operating Partnership, has the option to settle exchanged Operating Partnership Common Units held by others for cash based on the current trading price of our shares. Assuming the exchange of all Operating Partnership Common Units, there would have been 90,521,043 shares of common stock outstanding at December 31, 2022.

## *Equity*

### *Shelf Registration*

The Company has filed with the SEC an automatic shelf registration statement on Form S-3, registering an unspecified amount of common stock, preferred stock, depository shares, warrants and guarantees of debt securities of the Operating Partnership, as well as an unspecified amount of debt securities of the Operating Partnership, at an indeterminate aggregate initial offering price. The Company may periodically offer one or more of these securities in amounts, prices and on terms to be announced when and if these securities are offered. The specifics of any future offerings, along with the use of proceeds of any securities offered, will be described in detail in a prospectus supplement, or other offering materials, at the time of any offering.

### *Common Stock Offerings*

In May 2022, the Company completed a follow-on public offering of 5,750,000 shares of common stock, including the full exercise of the underwriters’ option to purchase 750,000 shares in connection with forward sale agreements. The offering resulted in net proceeds to the Company of approximately $386.7 million, after deducting fees and expenses and making certain other adjustments as provided in the equity distribution agreements.

In October 2022, the Company completed a follow-on public offering of 5,750,000 shares of common stock, including the full exercise of the underwriters’ option to purchase 750,000 shares, in connection with forward sale agreements. Upon settlement, the offering is anticipated to raise net proceeds of approximately $380.7 million after deducting fees and expenses and making certain other adjustments as provided in the equity distribution agreements. During 2022, the Company settled 1,600,000 shares of common stock under the forward sale agreements, realizing net proceeds of $106.2 million.

### *Preferred Stock Offering*

As of December 31, 2022, we had 7,000,000 depository shares (the “Depository Shares”) outstanding, each representing 1/1,000th of a share of Series A Preferred Stock.

Dividends on the Series A Preferred Shares are payable monthly in arrears on the first day of each month (or, if not on a business day, on the next succeeding business day). The dividend rate is 4.25% per annum of the $25,000 (equivalent to $25.00 per Depository Share) liquidation preference. Dividends on the Series A Preferred Shares are in the amount of $0.08854 per Depository Share, equivalent to $1.0625 per annum.

The Company may not redeem the Series A Preferred Shares before September 2026 except in limited circumstances to preserve its status as a real estate investment trust for federal income tax purposes and except in certain circumstances upon the occurrence of a change of control of the Company. Beginning in September 2026, the Company, at its option, may redeem the Series A Preferred Shares, in whole or from time to time in part, by paying $25.00 per Depository Share, plus any accrued and unpaid dividends. Upon the occurrence of a change in control of the Company, if the Company does not otherwise redeem the Series A Preferred Shares, the holders have a right to convert their shares into common stock of the Company at the $25.00 per share liquidation value, plus any accrued and unpaid dividends. This conversion value is limited by a share cap if the Company’s stock price falls below a certain threshold.

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### ATM Programs

The Company enters into ATM programs through which the Company, from time to time, sells shares of common stock and enters into forward sale agreements. The results of ATM programs entered into during 2020 and 2021 are shown in the following table. These ATM programs have been terminated and no future issuances will occur under them.

| Program Year | Size ($ million) | Shares Issued | Net Proceeds Received ($ million) |
| --- | --- | --- | --- |
| 2020 | $400.0 | 3,334,056 | $209.5 |
| 2021 | $500.0 | 5,453,975 | $379.1 |

In September 2022, the Company entered into a new $750 million ATM program (the “2022 ATM Program”) through which the Company, from time to time, may sell shares of common stock and/or enter into forward sale agreements.

As of December 31, 2022, the Company entered into forward sale agreements to sell an aggregate of 4,350,232 shares of common stock under the 2022 ATM Program, for anticipated net proceeds of $300.9 million. The Company has settled 245,591 shares of these forward sale agreements as of December 31, 2022 for net proceeds of approximately $18.1 million after deducting fees and expenses. The Company is required to settle the remaining outstanding shares of common stock under the 2022 ATM Program by various dates between November and December 2023. After considering the 4,350,232 shares of common stock subject to forward sale agreements issued under the 2022 ATM Program, the Company had approximately $446.6 million of availability remaining under this program as of December 31, 2022.

### **Debt**

The below table summarizes the Company’s outstanding debt as of December 31, 2022 and December 31, 2021 (*presented in thousands*):

| Senior Unsecured Revolving Credit Facility | All-in Interest Rate | Maturity | Principal Amount Outstanding |  |
| --- | --- | --- | --- | --- |
|  |  |  | December 31, 2022 | December 31, 2021 |
| Revolving Credit Facility (1) | 5.18% | January 2026 | $100,000 | $160,000 |
| Total Credit Facility |  |  | $100,000 | $160,000 |
| Senior Unsecured Notes |  |  |  |  |
| 2025 Senior Unsecured Notes | 4.16% | May 2025 | $50,000 | $50,000 |
| 2027 Senior Unsecured Notes | 4.26% | May 2027 | 50,000 | 50,000 |
| 2028 Senior Unsecured Public Notes (2) | 2.11% | June 2028 | 350,000 | 350,000 |
| 2028 Senior Unsecured Notes | 4.42% | July 2028 | 60,000 | 60,000 |
| 2029 Senior Unsecured Notes | 4.19% | September 2029 | 100,000 | 100,000 |
| 2030 Senior Unsecured Notes | 4.32% | September 2030 | 125,000 | 125,000 |
| 2030 Senior Unsecured Public Notes (2) | 3.49% | October 2030 | 350,000 | 350,000 |
| 2031 Senior Unsecured Notes | 4.42% | October 2031 | 125,000 | 125,000 |
| 2032 Senior Unsecured Public Notes (2) | 3.96% | October 2032 | 300,000 | - |
| 2033 Senior Unsecured Public Notes (2) | 2.13% | June 2033 | 300,000 | 300,000 |
| Total Senior Unsecured Notes |  |  | $1,810,000 | $1,510,000 |
| Mortgage Notes Payable |  |  |  |  |
| CMBS Portfolio Loan | 3.60% | January 2023 | $ - | $23,640 |
| Single Asset Mortgage Loan | 5.01% | September 2023 | 4,622 | 4,622 |
| Portfolio Credit Tenant Lease | 6.27% | July 2026 | 3,523 | 4,373 |
| Four Asset Mortgage Loan | 3.63% | December 2029 | 42,250 | - |
| Total Mortgage Notes Payable |  |  | $50,395 | $32,635 |
| Total Principal Amount Outstanding |  |  | $1,960,395 | $1,702,635 |

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(1) The annual interest rate of the Revolving Credit Facility (defined below) assumes SOFR as of December 31, 2022 of 4.30%.

#### Senior Unsecured Revolving Credit Facility

The Company’s Third Amended and Restated Revolving Credit Agreement provides for a $1.0 billion Revolving Credit Facility. The Revolving Credit Facility includes an accordion option that allows the Company to request additional lender commitments up to a total of $1.75 billion. The Revolving Credit Facility will mature in January 2026 with Company options to extend the maturity date to January 2027.

The Revolving Credit Facility’s interest rate is based on a pricing grid with a range of 72.5 to 140 basis points over SOFR, determined by the Company’s credit ratings and leverage ratio, plus a SOFR adjustment of 10 basis points. The margins for the Revolving Credit Facility are subject to improvement based on the Company’s leverage ratio, provided its credit ratings meet a certain threshold. Based on the Company’s credit ratings and leverage ratio at the time of closing, pricing on the Revolving Credit Facility was 87.5 basis points over SOFR. In connection with the Company’s ongoing environmental, social and governance (“ESG”) initiatives, pricing may be reduced if specific ESG ratings are achieved.

The Company and Richard Agree, the Executive Chairman of the Company, are parties to a Reimbursement Agreement dated November 18, 2014 (the “Reimbursement Agreement”). Pursuant to the Reimbursement Agreement, Mr. Agree has agreed to reimburse the Company for any loss incurred under the Revolving Credit Facility in an amount not to exceed $14.0 million to the extent that the value of the Operating Partnership’s assets available to satisfy the Operating Partnership’s obligations under the Revolving Credit Facility is less than $14.0 million.

#### Senior Unsecured Notes

The 2025 Senior Unsecured Notes, 2027 Senior Unsecured Notes, 2028 Senior Unsecured Notes, 2029 Senior Unsecured Notes, 2030 Senior Unsecured Notes, and 2031 Senior Unsecured Notes (collectively the “Private Placements”) were issued in private placements to individual investors. The Private Placements did not involve a public offering in reliance on the exemption from registration pursuant to Section 4(a)(2) of the Securities Act.

The 2030 Senior Unsecured Public Notes, 2028 Senior Unsecured Public Notes, 2033 Senior Unsecured Public Notes and 2032 Senior Unsecured Public Notes, (collectively the “Public Notes”) are fully and unconditionally guaranteed by Agree Realty Corporation and certain wholly owned subsidiaries of the Operating Partnership. The Public Notes are governed by an Indenture, dated August 17, 2020, among the Operating Partnership, the Company and trustee (as supplemented by an officer’s certificate dated at the issuance of each of the Public Notes). The Indenture contains various restrictive covenants, including limitations on the ability of the guarantors and the issuer to incur additional indebtedness and requirements to maintain a pool of unencumbered assets.

In August 2022, the Operating Partnership issued the 2032 Senior Unsecured Public Notes in an underwritten public offering of $300 million aggregate principal amount of notes with a stated interest rate of 4.80% due October 2032. The Company terminated related swap agreements of $300 million notional amount that hedged the 2032 Senior Unsecured Public Notes, receiving $28.4 million upon termination. Considering the effect of the terminated swap agreements, the blended all-in rate to the Company for the 2032 Senior Unsecured Public Notes is 3.96%.

#### Mortgage Notes Payable

As of December 31, 2022, the Company had total gross mortgage indebtedness of $50.4 million which was collateralized by related real estate and tenants’ leases with an aggregate net book value of $86.5 million. The weighted average interest rate on the Company’s mortgage notes payable was 3.94% as of December 31, 2022.

The Company has entered into mortgage loans which are secured by multiple properties and contain cross-default and cross-collateralization provisions. Cross-collateralization provisions allow a lender to foreclose on multiple properties in

33

the event that the Company defaults under the loan. Cross-default provisions allow a lender to foreclose on the related property in the event a default is declared under another loan.

### Loan Covenants

Certain loan agreements contain various restrictive covenants, including the following financial covenants: maximum leverage ratio, maximum secured leverage ratios, consolidated net worth requirements, a minimum fixed charge coverage ratio, a maximum unencumbered leverage ratio, a minimum unsecured interest expense ratio, a minimum interest coverage ratio, a minimum unsecured debt yield and a minimum unencumbered interest expense ratio. As of December 31, 2022, the most restrictive covenant was the minimum unencumbered interest expense ratio. The Company was in compliance with all of its material loan covenants and obligations as of December 31, 2022.

### Cash Flows

*Operating* -- Most of the Company's cash from operations is generated by rental income from its investment portfolio. Net cash provided by operating activities for the year ended December 31, 2022 increased by $115.8 million over 2021, primarily due to the increase in the size of the Company's real estate investment portfolio, as well as an increase in cash received upon settlement of outstanding interest rate swap agreements.

*Investing* -- Net cash used in investing activities was $229.4 million higher during the year ended December 31, 2022, compared to 2021. Acquisitions of properties during 2022 were $177.8 million higher than 2021, due to overall increases in the level of acquisition activity. Development costs during the year ended December 31, 2022 were $40.4 million higher than 2021, due to the increased number of development projects ongoing in 2022 as compared to 2021. Proceeds from asset sales decreased by $11.1 million during the year ended December 31, 2022 compared to 2021. Proceeds from asset sales are dependent on levels of disposition activity and the specific assets sold. Proceeds from asset sales are not necessarily comparable period-to-period.

*Financing* -- Net cash provided by financing activities was $59.9 million higher during the year ended December 31, 2022, compared to 2021.

Net proceeds from the issuance of the Series A Preferred Stock decreased $170.3 million due to the issuance of the Series A Preferred Stock during September 2021 and no such preferred stock issuance in 2022.

Net proceeds from the issuance of common stock increased by $513.0 million during the year ended December 31, 2022 compared to 2021, primarily to fund the increased level of acquisitions and ongoing developments in 2022.

Net cash used related to the Revolving Credit Facility increased $128.0 million due to net repayments under the Revolving Credit Facility of $60 million during the year ended December 31, 2022 compared to net borrowings of $68.0 million during 2021.

Cash used to repay mortgage notes payable increased $23.7 million during 2022 primarily due to the repayment of a mortgage note payable with a principal balance outstanding of $23.6 million during the year ended December 31, 2022.

Net proceeds from the issuance of senior unsecured notes and unsecured term loans decreased by $103.1 million during the year ended December 31, 2022, compared to the same period in 2021. During August 2022, the Company received proceeds of $297.5 million from the issuance of the $300 million 2032 Senior Unsecured Public Notes, issued primarily to reduce amounts outstanding under the Revolving Credit Facility and fund property acquisitions and development activity. During the year ended December 31, 2021, the company received proceeds of $640.6 million from the issuance of the $350 million 2028 Senior Unsecured Notes and the $300 million 2033 Senior Unsecured Public Notes, issued primarily to fund property acquisitions and pay off $240.0 million in unsecured term loans.

Total dividends and distributions paid to its common and preferred stockholders and non-controlling owners increased by $31.9 million during the year ended December 31, 2022, compared to the same period in 2021, due (i) to the issuance of preferred stock in September 2021; (ii) the increase in the number of common shares outstanding; and (iii) the increase in

34

the annual common dividend rate, partially offset by the change from paying a quarterly dividend to paying a monthly dividend beginning in 2021. The Company distributed $7.4 million to preferred shareholders in 2022 compared to $1.5 million during 2021 as the preferred stock was issued in September 2021. In addition, the number of common shares outstanding increased in 2022 and 2021 due to the issuance of approximately 18.8 million and 11.2 million shares of common stock during 2022 and 2021, respectively. Further, the Company’s declared dividend rate increased 7.7% to $2.805 per common share in 2022, up from $2.604 per common share in 2021. These increases in dividends paid were partially offset due to the change from paying dividends on a quarterly basis to monthly payments in 2021. Dividends paid during the year ended December 31, 2022 included the monthly dividends declared in December 2021 through November 2022 while dividends paid during the year ended December 31, 2021 included the quarterly dividend declared in December 2020 and the monthly dividends declared in January 2021 through November 2021.

### *Material Cash Requirements*

In conducting our business, the Company enters into contractual obligations, including those for debt and operating leases for land. Detail of these obligations as of December 31, 2022, including expected settlement periods, is contained below (*presented in thousands*):

|  | 2023 | 2024 | 2025 | 2026 | 2027 | Thereafter | Total |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Mortgage Notes Payable | $5,527 | $963 | $1,026 | $629 | $ - | $42,250 | $50,395 |
| Revolving Credit Facility (1) | - | - | - | 100,000 | - | - | 100,000 |
| Senior Unsecured Notes | - | - | 50,000 | - | 50,000 | 1,710,000 | 1,810,000 |
| Land Lease Obligations | 1,532 | 7,449 | 1,197 | 1,195 | 1,042 | 28,809 | 41,224 |
| Estimated Interest Payments on Outstanding Debt | 66,897 | 66,686 | 65,407 | 59,547 | 58,079 | 175,892 | 492,508 |
| Total | $73,956 | $75,098 | $117,630 | $161,371 | $109,121 | $1,956,951 | $2,494,127 |

(1) The balloon payment balance includes the balance outstanding under the Revolving Credit Facility as of December 31, 2022. The Revolving Credit Facility matures in January 2026, with options to extend the maturity to extend its maturity date by six months up to two times, for a maximum maturity of January 2027.

In addition to items reflected in the table above, the Company has preferred stock with cumulative cash dividends, as described under *Equity - Preferred Stock Offering* above.

During the year ended December 31, 2022 the Company had 31 development or Partner Capital Solutions projects completed or under construction, for which 24 remain under construction as of December 31, 2022. Anticipated total costs for the 31 projects are approximately $118.5 million. These construction commitments will be funded using cash provided from operations, current capital resources on hand, and/or other sources of funding available to the Company.

The Company’s recurring obligations under its tenant leases for maintenance, taxes, and/or insurance will also be funded through the sources available to the Company described earlier.

### *Dividends*

During the fourth quarter of 2022 the Company declared monthly dividends of $0.24 per common share for October, November, and December 2022. The holder of the Operating Partnership Common Units is entitled to an equal distribution per Operating Partnership Common Unit held. The dividends and distributions payable for October and November were paid during the quarter. The December dividends and distributions were paid on January 13, 2023.

During the fourth quarter of 2022, the Company declared a monthly dividend on the Series A Preferred Shares for October, November, and December 2022 in the amount of $0.08854 per Depositary Share. The dividends payable for October and November were paid during the quarter. The December dividend was paid on January 3, 2023.

35

# Recent Accounting Pronouncements

Refer to “*Note 2 - Summary of Significant Accounting Policies*” in the consolidated financial statements for a summary and anticipated impact of each accounting pronouncement on the Company’s financial statements.

## Critical Accounting Policies and Estimates

The preparation of our financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires the Company’s management to use judgment in the application of accounting policies, including making estimates and assumptions. Management bases estimates on the best information available at the time, its experience and on various other assumptions believed to be reasonable under the circumstances. These estimates affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. If management’s judgment or interpretation of the facts and circumstances relating to various transactions or other matters had been different, it is possible that different accounting principles would have been applied, resulting in different presentations of the consolidated financial statements. From time-to-time, the Company may re-evaluate its estimates and assumptions. In the event estimates or assumptions prove to be different from actual results, adjustments are made in subsequent periods to reflect more current estimates and assumptions about matters that are inherently uncertain. A summary of the Company’s critical accounting policies is included below. This summary should be read in conjunction with the more complete discussion of our accounting policies and procedures included in Note 2 to our consolidated financial statements.

### Accounting for Acquisitions of Real Estate

The acquisition of property for investment purposes is typically accounted for as an asset acquisition. The Company allocates the purchase price to land, building, assumed debt, if any, and identified intangible assets and liabilities, based in each case on their relative estimated fair values and without giving rise to goodwill. In making estimates of fair values, the Company may use various sources, including data provided by independent third parties, as well as information obtained by the Company as a result of due diligence, including expected future cash flows of the property and various characteristics of the markets where the property is located. Certain estimates, including those around market land values and market rental rates, are inherently subjective. While estimates of market land values and market rental rates are based on available market data, the application of market data to the unique nature of properties acquired may require significant judgment. The use of different assumptions in the allocation of the purchase price of the acquired properties could affect the timing of recognition of the related revenue and expenses.

### Impairments

We review our real estate investments for possible impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable through operations plus estimated disposition proceeds. Events or circumstances that may occur include, but are not limited to, significant changes in real estate market conditions, estimated residual values, our ability or expectation to re-lease properties that are vacant or become vacant or a change in the anticipated holding period for a property. Identification of such events may involve certain assumptions, estimates, and significant judgment.

Management determines whether an impairment in value has occurred by comparing the estimated future cash flows (undiscounted and without interest charges), including the residual value of the real estate, to the carrying cost of the individual asset. Impairments are measured to the extent the current book value exceeds the estimated fair value of the asset less disposition costs for any assets classified as held for sale.

The valuation of impaired assets is determined using valuation techniques including discounted cash flow analysis, analysis of recent comparable sales transactions and/or purchase offers received from third parties. The Company may consider a single valuation technique or multiple valuation techniques, as appropriate, when estimating the fair value of its real estate.

The expected cash flows of a property are dependent on estimates and other factors subject to change, including (1) changes in the national, regional, and/or local economic climates and/or market conditions, (2) competition from other retail,

36

(3) increases in operating costs, (4) bankruptcy and/or other changes in a tenant’s condition and (5) expected holding period. These factors could cause our expected future cash flows from a property to change, and, as a result, an impairment could be considered to have occurred. Determination of the fair value of a property for purposes of measuring impairment may involve significant judgment.

## Non-GAAP Financial Measures

### Funds from Operations (“FFO” or “Nareit FFO”)

FFO is defined by the National Association of Real Estate Investment Trusts, Inc. (“Nareit”) to mean net income computed in accordance with GAAP, excluding gains (or losses) from sales of real estate assets and/or changes in control, plus real estate related depreciation and amortization and any impairment charges on depreciable real estate assets, and after adjustments for unconsolidated partnerships and joint ventures. Historical cost accounting for real estate assets in accordance with GAAP implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, most real estate industry investors consider FFO to be helpful in evaluating a real estate company’s operation.

FFO should not be considered an alternative to net income as the primary indicator of the Company’s operating performance, or as an alternative to cash flow as a measure of liquidity. Further, while the Company adheres to the Nareit definition of FFO, its presentation of FFO is not necessarily comparable to similarly titled measures of other REITs due to the fact that all REITs may not use the same definition.

### Core Funds from Operations (“Core FFO”)

The Company defines Core FFO as Nareit FFO with the addback of (i) noncash amortization of acquisition purchase price related to above- and below- market lease intangibles and discount on assumed mortgage debt and (ii) certain infrequently occurring items that reduce or increase net income in accordance with GAAP. Management believes that its measure of Core FFO facilitates useful comparison of performance to its peers who predominantly transact in sale-leaseback transactions and are thereby not required by GAAP to allocate purchase price to lease intangibles. Unlike many of its peers, the Company has acquired the substantial majority of its net-leased properties through acquisitions of properties from third parties or in connection with the acquisitions of ground leases from third parties.

Core FFO should not be considered an alternative to net income as the primary indicator of the Company’s operating performance, or as an alternative to cash flow as a measure of liquidity. Further, the Company’s presentation of Core FFO is not necessarily comparable to similarly titled measures of other REITs due to the fact that all REITs may not use the same definition.

### Adjusted Funds from Operations (“AFFO”)

AFFO is a non-GAAP financial measure of operating performance used by many companies in the REIT industry. AFFO further adjusts FFO and Core FFO for certain non-cash items that reduce or increase net income computed in accordance with GAAP. Management considers AFFO a useful supplemental measure of the Company’s performance, however, AFFO should not be considered an alternative to net income as an indication of its performance, or to cash flow as a measure of liquidity or ability to make distributions. The Company’s computation of AFFO may differ from the methodology for calculating AFFO used by other equity REITs, and therefore may not be comparable to such other REITs.

37

The following table provides a reconciliation of net income to FFO, Core FFO, and AFFO for the years ended December 31, 2022, 2021, and 2020:

|  | Year Ended |  |  |
| --- | --- | --- | --- |
|  | December 31, 2022 | December 31, 2021 | December 31, 2020 |
| Reconciliation from Net Income to Funds from Operations |  |  |  |
| Net income | $153,035 | $122,876 | $91,972 |
| Less Series A preferred stock dividends | 7,437 | 2,148 | - |
| Net income attributable to Operating Partnership common unitholders | 145,598 | 120,728 | 91,972 |
| Depreciation of rental real estate assets | 88,685 | 66,732 | 48,367 |
| Amortization of lease intangibles - in-place leases and leasing costs | 44,107 | 28,379 | 17,882 |
| Provision for impairment | 1,015 | 1,919 | 4,137 |
| (Gain) loss on sale or involuntary conversion of assets, net | (5,258) | (15,111) | (8,004) |
| Funds from Operations - Operating Partnership common unitholders | $274,147 | $202,647 | $154,354 |
| Loss on extinguishment of debt and settlement of related hedges | - | 14,614 | - |
| Amortization of above (below) market lease intangibles, net and assumed mortgage debt discount, net | 33,563 | 24,284 | 15,885 |
| Core Funds from Operations - Operating Partnership common unitholders | $307,710 | $241,545 | $170,239 |
| Straight-line accrued rent | (13,176) | (11,857) | (7,818) |
| Stock based compensation expense | 6,464 | 5,467 | 4,995 |
| Amortization of financing costs | 3,141 | 1,197 | 826 |
| Non-real estate depreciation | 778 | 618 | 509 |
| Adjusted Funds from Operations - Operating Partnership common unitholders | $304,917 | $236,970 | $168,751 |
| Funds from Operations per common share and partnership unit - diluted | $3.45 | $3.00 | $2.93 |
| Core Funds from Operations per common share and partnership unit - diluted | $3.87 | $3.58 | $3.23 |
| Adjusted Funds from Operations per common share and partnership unit - diluted | $3.83 | $3.51 | $3.20 |
| Weighted average shares and Operating Partnership common units outstanding |  |  |  |
| Basic | 79,006,952 | 67,149,861 | 52,185,838 |
| Diluted | 79,512,005 | 67,486,698 | 52,744,353 |
| Additional supplemental disclosure |  |  |  |
| Scheduled principal repayments | $850 | $799 | $907 |
| Capitalized interest | $1,261 | $249 | $172 |
| Capitalized building improvements | $7,945 | $5,821 | $5,581 |

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# **Item 7A: Quantitative and Qualitative Disclosures about Market Risk**

The Company is exposed to interest rate risk primarily through borrowing activities. There is inherent roll-over risk for borrowings as they mature and are renewed at current market rates. The extent of this risk is not quantifiable or predictable because of the variability of future interest rates and our future financing requirements.

The Company's interest rate risk is monitored using a variety of techniques. The table below presents the principal payments (*presented in thousands*) and the weighted average interest rates on outstanding debt, by year of expected maturity, to evaluate the expected cash flows and sensitivity to interest rate changes. Average interest rates shown reflect the impact of the swap agreements described later in this section.

|  | 2023 | 2024 | 2025 | 2026 | 2027 | Thereafter | Total |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Mortgage Notes Payable | $5,527 | $963 | $1,026 | $629 | $ - | $42,250 | $50,395 |
| Average Interest Rate | 5.22% | 6.27% | 6.27% | 6.27% |  | 3.63% |  |
| Revolving Credit Facility (1) | $ - | $ - | $ - | $100,000 | $ - | $ - | $100,000 |
| Average Interest Rate |  |  |  | 5.14% |  |  |  |
| Senior Unsecured Notes | $ - | $ - | $50,000 | $ - | $50,000 | $1,710,000 | $1,810,000 |
| Average Interest Rate |  |  | 4.16% |  | 4.26% | 3.25% |  |

(1) The balloon payment balance includes the balance outstanding under the Revolving Credit Facility as of December 31, 2022. The Revolving Credit Facility matures in January 2026, with options to extend the maturity date by six months up to two times, for a maximum maturity of January 2027.

The fair value is estimated to be $45.4 million and $1.54 billion for mortgage notes payable and senior unsecured notes, respectively, as of December 31, 2022. The fair value of the Revolving Credit Facility approximates its book value as its variable rate debt.

The table above incorporates those exposures that exist as of December 31, 2022; it does not consider those exposures or positions which could arise after that date. As a result, the Company's ultimate realized gain or loss with respect to interest rate fluctuations will depend on the exposures that arise during the period and interest rates.

The Company seeks to limit the impact of interest rate changes on earnings and cash flows and to lower the overall borrowing costs by closely monitoring our variable rate debt and converting such debt to fixed rates when the Company deems such conversion advantageous. From time to time, the Company may enter into interest rate swap agreements or other interest rate hedging contracts. While these agreements are intended to lessen the impact of rising interest rates, they also expose the Company to the risks that the other parties to the agreements will not perform. The Company could incur significant costs associated with the settlement of the agreements, the agreements will be unenforceable and the underlying transactions will fail to qualify as highly effective cash flow hedges under GAAP guidance.

The Company does not use derivative instruments for trading or other speculative purposes, and the Company did not have any derivative instruments as of December 31, 2022.

# **Item 8: Financial Statements and Supplementary Data**

The financial statements and supplementary data are listed in the Index to the Financial Statements and Financial Statement Schedules appearing on Page F-1 of this Annual Report on Form 10-K and are included in this Annual Report on Form 10-K following page F-1.

# **Item 9: Changes in and Disagreements with Accountants on Accounting and Financial Disclosure**

None.

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# **Item 9A: Controls and Procedures**

# *Disclosure Controls and Procedures*

As of the end of the period covered by this report, the Company conducted an evaluation, under the supervision and with the participation of our principal executive officer and principal financial officer, of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Based on this evaluation, the Company's principal executive officer and principal financial officer concluded that its disclosure controls and procedures are effective as of the end of the period covered by this report to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

# *Management's Report on Internal Control over Financial Reporting*

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rules 13a15-(f) and 15d-15(f) under the Exchange Act. Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP. Our internal control over financial reporting includes those policies and procedures that:

1) Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of our Company;
2) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and
3) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Under the supervision of our principal executive officer and our principal financial officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in *Internal Control - Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on our assessment and those criteria, our management concluded that we maintained effective internal control over financial reporting as of December 31, 2022.

# *Changes in Internal Control over Financial Reporting*

There was no change in our internal control over financial reporting during our most recently completed fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

# *Attestation Report of Independent Registered Public Accounting Firm*

The attestation report issued by our independent registered public accounting firm, Grant Thornton LLP, required under this item is contained on page F-2 of this Annual Report on Form 10-K.

# **Item 9B: Other Information**

None.

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# **Item 9C: Disclosure Regarding Foreign Jurisdictions that Prevent Inspections**

Not applicable.

41

## PART III

### Item 10: Directors, Executive Officers and Corporate Governance

The information required by this item is set forth under the following captions in our proxy statement to be filed with respect to our 2023 Annual Meeting of Stockholders (the “Proxy Statement”), all of which is incorporated by reference: “Proposal I - Election of Directors”; “Board Matters-The Board of Directors”; “Board Matters -Committees of the Board”; “Board Matters -Corporate Governance”; “Executive Officers”; and “Additional Information - Proposals for 2023 Annual Meeting.”

### Item 11: Executive Compensation

The information required by this item is set forth under the following captions in our Proxy Statement, all of which is incorporated herein by reference: “Compensation Discussion and Analysis,” “Executive Compensation Tables,” “Board Matters - Director Compensation,” “Board Matters - Compensation Committee Interlocks and Insider Participation” and “Compensation Committee Report.”

### Item 12: Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The following table summarizes the equity compensation plan under which our common stock may be issued as of December 31, 2022.

| Plan Category | Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights (a) | Weighted Average Exercise Price of Outstanding Options, Warrant and Rights (b) | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a)) (c) |
| --- | --- | --- | --- |
| Equity Compensation Plans Approved by Security Holders | - | - | 333,048 (1) |
| Equity Compensation Plans Not Approved by Security Holders | - | - | - |
| Total | - | - | 333,048 |

(1) Relates to various stock-based awards available for issuance under the Agree Realty Corporation 2020 Omnibus Incentive Plan, including incentive stock options, non-qualified stock options, stock appreciation rights, deferred stock awards, restricted stock awards, performance shares and units, unrestricted stock awards and dividend equivalent rights.

Additional information required by this item is set forth under the following caption in our Proxy Statement, all of which is incorporated herein by reference: “Security Ownership of Certain Beneficial Owners and Management.”

### Item 13: Certain Relationships and Related Transactions, and Director Independence

The information required by this item is set forth under the following captions in our Proxy Statement, all of which is incorporated herein by reference: “Related Person Transactions” and “Board Matters -The Board of Directors.”

### Item 14: Principal Accountant Fees and Services

The information required by this item is set forth under the following caption in our Proxy Statement, all of which is incorporated herein by reference: “Audit Committee Matters.”

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PART IV

**ITEM 15: Exhibits and Financial Statement Schedules**

15(a)(1). The following documents are filed as a part of this Annual Report on Form 10-K:
• Reports of Independent Registered Public Accounting Firm
• Consolidated Balance Sheets as of December 31, 2022 and 2021
• Consolidated Statements of Operations and Comprehensive Income for the Years Ended December 31, 2022, 2021, and 2020
• Consolidated Statement of Equity for the Years Ended December 31, 2022, 2021, and 2020
• Consolidated Statements of Cash Flow for the Years Ended December 31, 2022, 2021, and 2020
• Notes to the Consolidated Financial Statements

15(a)(2). The following is a list of the financial statement schedules required by Item 8:
Schedule III - Real Estate and Accumulated Depreciation

15(a)(3). Exhibits

| Exhibit No. | Description |
| --- | --- |
| 3.1 | Articles of Incorporation of the Company, including all amendments and articles supplementary thereto (incorporated by reference to Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2013). |
| 3.2 | Amended and Restated Bylaws of the Company (incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K filed on May 9, 2013). |
| 3.3 | Amendment to the Articles of Incorporation of the Company (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on May 6, 2015). |
| 3.4 | Amendment to the Articles of Incorporation of the Company (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on May 3, 2016). |
| 3.5 | Articles Supplementary of the Company, dated February 26, 2019 (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on February 28, 2019). |
| 3.6 | First Amendment to Amended and Restated Bylaws of Agree Realty Corporation, effective February 26, 2019 (incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K filed on February 28, 2019). |
| 3.7 | Articles of Amendment of the Company (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on April 25, 2019). |
| 3.8 | Amendment to Articles of Incorporation of the Company (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on May 10, 2021). |
| 3.9 | Articles Supplementary of the Company, dated September 13, 2021 (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on September 13, 2021). |
| 4.1 | Amended and Restated Registration Rights Agreement, dated July 8, 1994 by and among the Company, Richard Agree, Edward Rosenberg and Joel Weiner (incorporated by reference to Exhibit 10.2 to the Company’s Annual Report on Form 10-K for the year ended December 31, 1994). |

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- 4.2 Form of certificate representing shares of common stock (incorporated by reference to Exhibit 4.2 to the Company's Registration Statement on Form S-3 filed on August 24, 2009).
- 4.3 Form of 4.32% Senior Guaranteed Note, Series 2018-A, due September 26, 2030 (incorporated by reference to Exhibit 4.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2018).
- 4.4 Form of 4.32% Senior Guaranteed Note, Series 2018-B, due September 26, 2030 (incorporated by reference to Exhibit 4.2 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2018).
- 4.5 Description of Registrant's Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934, as amended. (incorporated by reference to Exhibit 4.5 to the Company's Annual Report on Form 10-K for the year ended December 31, 2022)
- 4.6 Indenture, dated as of August 17, 2020, among the Agree Limited Partnership, Agree Realty Corporation and U.S. Bank National Association (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed on August 17, 2020).
- 4.7 Indenture Officer's Certificate, dated as of August 17, 2020, among Agree Limited Partnership, Agree Realty Corporation and U.S. Bank National Association (incorporated by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K filed on August 17, 2020).
- 4.8 Form of Global Note for 2.900% Notes due 2030 (incorporated by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K filed on August 17, 2020).
- 4.9 Form of Guarantee by and among Agree Limited Partnership, the Guarantors named therein and U.S. Bank National Association (incorporated by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K filed on August 17, 2020).
- 4.10 Indenture Officer's Certificate, dated as of May 14, 2021, among Agree Limited Partnership, Agree Realty Corporation and U.S. Bank National Association (incorporated by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K filed on May 14, 2021).
- 4.11 Form of Global Note for 2.000% Notes due 2028 (incorporated by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K filed on May 14, 2021).
- 4.12 Form of Global Note for 2.600% Notes due 2033 (incorporated by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K filed on May 14, 2021).
- 4.13 Form of 2028 Guarantee by and among Agree Limited Partnership, Agree Realty Corporation and U.S. Bank National Association (incorporated by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K filed on May 14, 2021).
- 4.14 Form of 2033 Guarantee by and among Agree Limited Partnership, Agree Realty Corporation and U.S. Bank National Association (incorporated by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K filed on May 14, 2021).
- 4.15 Master Deposit Agreement, by and among Agree Realty Corporation, Computershare Inc. and Computershare Trust Company, N.A., as depository, and the holders from time to time of the depository receipts described therein relating to shares of preferred stock of the Company, dated as of September 17, 2022 (incorporated by reference to Exhibit 4.1 to the Company's Registration Statement on Form 8-A filed on September 17, 2021).

44

- 4.16 Indenture Officer's Certificate, dated as of August 22, 2022, among Agree Limited Partnership, Agree Realty Corporation and U.S. Bank National Association (incorporated by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K filed on August 22, 2022).
- 4.17 Form of Global Note for 4.800% Notes due 2032 (incorporated by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K filed on August 22, 2022).
- 4.18 Form of 2032 Guarantee by and among Agree Limited Partnership, Agree Realty Corporation and U.S. Bank National Association (incorporated by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K filed on August 22, 2022).
- 10.1 Note Purchase Agreement, dated as of August 3, 2017, among Agree Limited Partnership, the Company and the purchasers named therein (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2017).
- 10.2 Uncommitted Master Note Facility, dated as of August 3, 2017, among Agree Limited Partnership, the Company and Teachers Insurance and Annuity Associate of America ('TIAA') and each TIAA Affiliate (as defined therein) (incorporated by reference to Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2017).
- 10.3 Uncommitted Master Note Facility, dated as of August 3, 2017, among Agree Limited Partnership, the Company and Teachers Insurance and AIG Asset Management (U.S.), LLC ('AIG') and each AIG Affiliate (as defined therein) (incorporated by reference to Exhibit 10.3 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2017).
- 10.4+ Amended Employment Agreement, dated July 1, 2014, by and between the Company and Richard Agree (incorporated by reference to Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2014).
- 10.5+ Amended Employment Agreement, dated July 1, 2014, by and between the Company and Joey Agree (incorporated by reference to Exhibit 10.3 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2014).
- 10.6\*+ Summary of Director Compensation.
- 10.7+ Agree Realty Corporation 2014 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.10 to the Company's Annual Report on Form 10-K for the year ended December 31, 2014).
- 10.8+ Form of Restricted Stock Agreement under the Agree Realty Corporation 2014 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2014).
- 10.9+ Form of Performance Share Award Agreement pursuant to the Agree Realty Corporation 2014 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.17 to the Company's Annual Report on Form 10-K for the year ended December 31, 2017).
- 10.10+ Agree Realty Corporation 2017 Executive Incentive Plan, dated February 16, 2017 (incorporated by reference to Exhibit 10.14 to the Company's Annual Report on Form 10-K for the year ended December 31, 2016).
- 10.11 Note Purchase Agreement dated as of May 28, 2015 by and among Agree Limited Partnership, the Company and the purchasers thereto (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on June 1, 2015).

45

10.12 Note Purchase Agreement, dated as of July 28, 2016, by and among Agree Limited Partnership, the Company and the purchasers thereto (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2016).10.13 Form of Revolving Note (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed on July 23, 2018).10.14 First Supplement to Uncommitted Master Note Facility, dated as of September 26, 2018, among Agree Limited Partnership, Agree Realty Corporation and Teachers Insurance and Annuity Association of America ('TIAA') (incorporated by reference to Exhibit 10.3 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2018).10.15 First Supplement to Uncommitted Master Note Facility, dated as of September 26, 2018, among Agree Limited Partnership, Agree Realty Corporation, AIG Asset Management (U.S.), LLC and the institutional investors named therein (incorporated by reference to Exhibit 10.4 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2018).10.16 Reimbursement Agreement, dated as of November 18, 2014, by and between the Company and Richard Agree (incorporated by reference to Exhibit 10.29 to the Company's Annual Report on Form 10-K for the year ended December 31, 2018).10.17+ Form of Performance Unit Award Notice (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2019).10.18 Note Purchase Agreement, dated as of June 14, 2019, among Agree Limited Partnership, the Company and the purchasers named therein (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2019).10.19+ Summary of Material Terms of Compensation Arrangement with Danielle M. Spehar (effective December 7, 2019). (incorporated by reference to Exhibit 10.38 to the Company's Annual Report on Form 10-K for the year ended December 31, 2021).10.21+ Agree Realty Corporation 2020 Omnibus Incentive Plan (incorporated by reference to Appendix A to the Company's Definitive Proxy Statement on Schedule 14A filed on March 23, 2020).10.22+ Form of Restricted Stock Agreement under the Agree Realty Corporation 2020 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q filed on July 20, 2020).10.23+ Form of Performance Unit Agreement under the Agree Realty Corporation 2020 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.3 to the Company's Quarterly Report on Form 10-Q filed on July 20, 2020).10.24+ Employment Agreement, dated October 9, 2020, by and between Agree Realty Corporation and Joel Agree (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on October 15, 2020).10.25+ Employment Agreement dated June 18, 2020, between Agree Realty Corporation and Craig Erlich (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q filed on October 19, 2020).10.26+ Addendum to Employment Agreement dated August 19, 2020, between Agree Realty Corporation and Craig Erlich (incorporated by reference to Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q filed on October 19, 2020).

46

10.27 Second Amended and Restated Agreement of Limited Partnership of Agree Limited Partnership, dated as of September 17, 2021 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on September 17, 2021).10.28 Third Amended and Restated Credit Agreement, dated as of December 15, 2021, by and among Agree Realty Corporation, Agree Limited Partnership, PNC Bank, National Association as Administrative Agent, and a syndicate of lenders named therein (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on December 16, 2021).10.29\* First Amendment to Third Amendment and Restated Credit Agreement, dated as of December 15, 2021 by and among Agree Realty Corporation, Agree Limited Partnership, PNC Bank, National Association as Administrative Agent, and a syndicate of lenders named therein.10.30+ Employment Agreement, dated January 5, 2022, between Agree Realty Corporation and Peter Coughenour (incorporated by reference to Exhibit 10.30 to the Company's Annual Report on Form 10-K for the year ended December 31, 2021).10.31+ Form of Restricted Stock Notice (Non-Employee Directors) under the Agree Realty Corporation 2020 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.31 to the Company's Annual Report on Form 10-K for the year ended December 31, 2021).21\* Subsidiaries of Agree Realty Corporation.22\* Subsidiary Guarantors of Agree Realty Corporation.23.1\* Consent of Grant Thornton LLP.24\* Power of Attorney (included on the signature page of this Annual Report on Form 10-K).31.1\* Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, Joel N. Agree, Chief Executive Officer.31.2\* Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, Peter Coughenour, Chief Financial Officer.32.1\* Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, Joel N. Agree, Chief Executive Officer.32.2\* Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, Peter Coughenour, Chief Financial Officer.101\* The following materials from Agree Realty Corporation's Annual Report on Form 10-K for the year ended December 31, 2022 formatted in Inline XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations and Comprehensive Income, (iii) the Consolidated Statement of Equity, (iv) the Consolidated Statements of Cash Flows, and (v) related notes to these consolidated financial statements, tagged as blocks of text.104\* Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101).

* Filed herewith.

+ Management contract or compensatory plan or arrangement.

15(b) The Exhibits listed in Item 15(a)(3) are hereby filed with this Annual Report on Form 10-K.

47

15(c) The financial statement schedule listed at Item 15(a)(2) is hereby filed with this Annual Report on Form 10-K.

# **Item 16: Form 10-K Summary**

None.

48

|  | Page |
| --- | --- |
| Reports of Independent Registered Public Accounting Firm (PCAOB ID Number 248) | F-2 |
| Financial Statements |  |
| Consolidated Balance Sheets | F-5 |
| Consolidated Statements of Operations and Comprehensive Income | F-7 |
| Consolidated Statement of Equity | F-8 |
| Consolidated Statements of Cash Flows | F-9 |
| Notes to Consolidated Financial Statements | F-10 |
| Schedule III - Real Estate and Accumulated Depreciation | F-39 |

F-1

# REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors and Shareholders Agree Realty Corporation

## Opinion on internal control over financial reporting

We have audited the internal control over financial reporting of Agree Realty Corporation (a Maryland corporation) and subsidiaries (the “Company”) as of December 31, 2022, based on criteria established in the 2013 *Internal Control-Integrated Framework* issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2022, based on criteria established in the 2013 *Internal Control-Integrated Framework* issued by COSO.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated financial statements of the Company as of and for the year ended December 31, 2022, and our report dated February 14, 2023 expressed an unqualified opinion on those financial statements.

## Basis for opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

## Definition and limitations of internal control over financial reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ GRANT THORNTON LLP

Philadelphia, Pennsylvania February 14, 2023

F-2

# REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors and Shareholders Agree Realty Corporation

## Opinion on the financial statements

We have audited the accompanying consolidated balance sheets of Agree Realty Corporation (a Maryland corporation) and subsidiaries (the “Company”) as of December 31, 2022 and 2021, the related consolidated statements of operations and comprehensive income, equity, and cash flows for each of the three years in the period ended December 31, 2022, and the related notes and financial statement schedules included under Item 15(a) (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2022, in conformity with accounting principles generally accepted in the United States of America.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company’s internal control over financial reporting as of December 31, 2022, based on criteria established in the 2013 Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”), and our report dated February 14, 2023 expressed an unqualified opinion.

## Basis for opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

## Critical audit matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

### *Fair value measurements used in the purchase price allocation of real estate acquisitions*

As described further in Notes 2 and 4 to the consolidated financial statements, the acquisition of property for investment purposes is typically accounted for as an asset acquisition. The Company allocates the purchase price to the assets acquired and liabilities assumed including land, building, assumed debt, if any, and identified intangible assets and liabilities, based in each case on their relative estimated fair values and without giving rise to goodwill. During 2022, the Company purchased 434 retail net lease assets for approximately $1.6 billion. We identified the fair value measurements used in the purchase price allocation of real estate acquisitions as a critical audit matter.

The principal consideration for our determination that the fair value measurements used in the purchase price allocation of real estate acquisitions are a critical audit matter is that auditing management’s determination of fair value is

F-3

challenging due to the high degree of auditor judgment necessary in evaluating certain assumptions made by management. Those significant assumptions include market land value and market rent.

Our audit procedures related to the fair value measurements used in the purchase price allocation of real estate acquisitions included the following, among others. We obtained an understanding, evaluated the design, and tested the operating effectiveness of relevant controls to allocate the purchase price of real estate acquisitions, including controls over the selection and review of inputs and assumptions used to estimate fair value. For a selection of real estate acquisitions, our real estate valuation professionals evaluated the reasonableness of key inputs and assumptions used to determine fair value by comparing the Company’s market land and market rent values to independently developed ranges using relevant market data derived from industry transaction databases and published industry reports. For a selection of real estate acquisitions and leases, we compared the Company’s market land and market rent values to independently developed ranges for reasonableness and to consider if management bias was present. Our procedures included performing sensitivity analyses over the significant assumptions.

/s/ GRANT THORNTON LLP

We have served as the Company’s auditor since 2013.

Philadelphia, Pennsylvania February 14, 2023

F-4

# **AGREE REALTY CORPORATION**  
 **CONSOLIDATED BALANCE SHEETS**  
 (In thousands, except share and per-share data)

|  | December 31, 2022 | December 31, 2021 |
| --- | --- | --- |
| ASSETS |  |  |
| Real Estate Investments |  |  |
| Land | $1,941,599 | $1,559,434 |
| Buildings | 4,054,679 | 3,034,391 |
| Less accumulated depreciation | (321,142) | (233,862) |
|  | 5,675,136 | 4,359,963 |
| Property under development | 65,932 | 7,148 |
| Net Real Estate Investments | 5,741,068 | 4,367,111 |
| Real Estate Held for Sale, net | - | 5,676 |
| Cash and Cash Equivalents | 27,763 | 43,252 |
| Cash Held in Escrows | 1,146 | 1,998 |
| Accounts Receivable - Tenants, net | 65,841 | 53,442 |
| Lease Intangibles, net of accumulated amortization of $263,011 and $180,532 at December 31, 2022 and December 31, 2021, respectively | 799,448 | 672,020 |
| Other Assets, net | 77,923 | 83,407 |
| Total Assets | $6,713,189 | $5,226,906 |

*See accompanying notes to consolidated financial statements.*

F-5

# **AGREE REALTY CORPORATION**  
 **CONSOLIDATED BALANCE SHEETS**  
 (In thousands, except share and per-share data)

|  | December 31, 2022 | December 31, 2021 |
| --- | --- | --- |
| LIABILITIES |  |  |
| Mortgage Notes Payable, net | $47,971 | $32,429 |
| Senior Unsecured Notes, net | 1,792,047 | 1,495,200 |
| Unsecured Revolving Credit Facility | 100,000 | 160,000 |
| Dividends and Distributions Payable | 22,345 | 16,881 |
| Accounts Payable, Accrued Expenses, and Other Liabilities | 83,722 | 70,005 |
| Lease Intangibles, net of accumulated amortization of $35,992 and $29,726 at December 31, 2022 and December 31, 2021, respectively | 36,714 | 33,075 |
| Total Liabilities | 2,082,799 | 1,807,590 |
| EQUITY |  |  |
| Preferred stock, $.0001 par value per share, 4,000,000 shares authorized, 7,000 shares Series A outstanding, at stated liquidation value of $25,000 per share, at December 31, 2022 and December 31, 2021 | 175,000 | 175,000 |
| Common stock, $.0001 par value, 180,000,000 shares authorized, 90,173,424 and 71,285,311 shares issued and outstanding at December 31, 2022 and December 31, 2021, respectively | 9 | 7 |
| Additional paid-in-capital | 4,658,570 | 3,395,549 |
| Dividends in excess of net income | (228,132) | (147,366) |
| Accumulated other comprehensive income (loss) | 23,551 | (5,503) |
| Total Equity - Agree Realty Corporation | 4,628,998 | 3,417,687 |
| Non-controlling interest | 1,392 | 1,629 |
| Total Equity | 4,630,390 | 3,419,316 |
| Total Liabilities and Equity | $6,713,189 | $5,226,906 |

*See accompanying notes to consolidated financial statements.*

F-6

# **AGREE REALTY CORPORATION**  
 **CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME**  
 (In thousands, except share and per-share data)

|  | Year Ended |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |
| Revenues |  |  |  |
| Rental income | $429,632 | $339,067 | $248,309 |
| Other | 182 | 256 | 259 |
| Total Revenues | 429,814 | 339,323 | 248,568 |
| Operating Expenses |  |  |  |
| Real estate taxes | 32,079 | 25,513 | 21,428 |
| Property operating expenses | 18,585 | 13,996 | 9,023 |
| Land lease expense | 1,617 | 1,552 | 1,301 |
| General and administrative | 30,121 | 25,456 | 20,793 |
| Depreciation and amortization | 133,570 | 95,729 | 66,758 |
| Provision for impairment | 1,015 | 1,919 | 4,137 |
| Total Operating Expenses | 216,987 | 164,165 | 123,440 |
| Gain (loss) on sale of assets, net | 5,341 | 14,941 | 8,004 |
| Gain (loss) on involuntary conversion, net | (83) | 170 | - |
| Income from Operations | 218,085 | 190,269 | 133,132 |
| Other (Expense) Income |  |  |  |
| Interest expense, net | (63,435) | (50,378) | (40,097) |
| Income tax (expense) benefit | (2,860) | (2,401) | (1,086) |
| Loss on early extinguishment of term loans and settlement of related interest rate swaps | - | (14,614) | - |
| Other (expense) income | 1,245 | - | 23 |
| Net Income | 153,035 | 122,876 | 91,972 |
| Less net income attributable to non-controlling interest | 598 | 603 | 591 |
| Net income attributable to Agree Realty Corporation | 152,437 | 122,273 | 91,381 |
| Less Series A preferred stock dividends | 7,437 | 2,148 | - |
| Net Income Attributable to Common Stockholders | $145,000 | $120,125 | $91,381 |
| Net Income Per Share Attributable to Common Stockholders |  |  |  |
| Basic | $1.84 | $1.79 | $1.76 |
| Diluted | $1.83 | $1.78 | $1.74 |
| Other Comprehensive Income |  |  |  |
| Net income | $153,035 | $122,876 | $91,972 |
| Amortization of interest rate swaps | (684) | 950 | 698 |
| Change in fair value and settlement of interest rate swaps | 29,881 | 29,980 | (30,694) |
| Total comprehensive income (loss) | 182,232 | 153,806 | 61,976 |
| Less comprehensive income (loss) attributable to non-controlling interest | 741 | 770 | 369 |
| Comprehensive Income (Loss) Attributable to Agree Realty Corporation | $181,491 | $153,036 | $61,607 |
| Weighted Average Number of Common Shares Outstanding - Basic | 78,659,333 | 66,802,242 | 51,838,219 |
| Weighted Average Number of Common Shares Outstanding - Diluted | 79,164,386 | 67,139,079 | 52,396,734 |

*See accompanying notes to consolidated financial statements.*

F-7

# **AGREE REALTY CORPORATION**  
 **CONSOLIDATED STATEMENT OF EQUITY**  
 (In thousands, except share and per-share data)

|  | Preferred Stock |  | Common Stock |  | Additional Paid-In Capital | Dividends in excess of net income | Accumulated Other Comprehensive Income (Loss) | Non-Controlling Interest | Total Equity |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | Shares | Amount | Shares | Amount |  |  |  |  |  |
| Balance, December 31, 2019 | - | $ - | 45,573,623 | $5 | $1,752,912 | $(57,094) | $(6,492) | $2,231 | $1,691,562 |
| Issuance of common stock, net of issuance costs | - | - | 14,418,612 | 1 | 896,117 | - | - | - | 896,118 |
| Repurchase of common shares | - | - | (20,927) | - | (1,641) | - | - | - | (1,641) |
| Issuance of stock under the 2014 Omnibus Incentive Plan | - | - | 48,942 | - | - | - | - | - | - |
| Issuance of stock under the 2020 Omnibus Incentive Plan | - | - | 4,541 | - | - | - | - | - | - |
| Forfeiture of restricted stock | - | - | (3,308) | - | (9) | - | - | - | (9) |
| Stock-based compensation | - | - | - | - | 4,711 | - | - | - | 4,711 |
| Dividends and distributions declared for the period | - | - | - | - | - | (125,630) | - | (838) | (126,468) |
| Amortization, changes in fair value, and settlement of interest rate swaps | - | - | - | - | - | - | (29,774) | (222) | (29,996) |
| Net income | - | - | - | - | - | 91,381 | - | 591 | 91,972 |
| Balance, December 31, 2020 | - | $ - | 60,021,483 | $6 | $2,652,090 | $(91,343) | $(36,266) | $1,762 | $2,526,249 |
| Issuance of Series A preferred stock, net of issuance costs | 7,000 | 175,000 | - | - | (4,692) | - | - | - | 170,308 |
| Issuance of common stock, net of issuance costs | - | - | 11,179,982 | 1 | 744,846 | - | - | - | 744,847 |
| Repurchase of common shares | - | - | (28,051) | - | (1,813) | - | - | - | (1,813) |
| Issuance of stock under the 2020 Omnibus Incentive Plan | - | - | 138,894 | - | 320 | - | - | - | 320 |
| Forfeiture of restricted stock | - | - | (26,997) | - | (560) | - | - | - | (560) |
| Stock-based compensation | - | - | - | - | 5,358 | - | - | - | 5,358 |
| Series A preferred dividends declared for the period | - | (2,148) | - | - | - | - | - | - | (2,148) |
| Dividends and distributions declared for the period | - | - | - | - | - | (176,148) | - | (903) | (177,051) |
| Amortization, changes in fair value, and settlement of interest rate swaps | - | - | - | - | - | - | 30,763 | 167 | 30,930 |
| Net income | - | 2,148 | - | - | - | 120,125 | - | 603 | 122,876 |
| Balance, December 31, 2021 | 7,000 | $175,000 | 71,285,311 | $7 | $3,395,549 | $(147,366) | $(5,503) | $1,629 | $3,419,316 |
| Issuance of common stock, net of issuance costs | - | - | 18,799,566 | 2 | 1,257,821 | - | - | - | 1,257,823 |
| Repurchase of common shares | - | - | (30,366) | - | (1,912) | - | - | - | (1,912) |
| Issuance of stock under the 2020 Omnibus Incentive Plan | - | - | 129,099 | - | 648 | - | - | - | 648 |
| Forfeiture of restricted stock | - | - | (10,186) | - | (61) | - | - | - | (61) |
| Stock-based compensation | - | - | - | - | 6,525 | - | - | - | 6,525 |
| Series A preferred dividends declared for the period | - | (7,437) | - | - | - | - | - | - | (7,437) |
| Dividends and distributions declared for the period | - | - | - | - | - | (225,766) | - | (978) | (226,744) |
| Amortization, changes in fair value, and settlement of interest rate swaps | - | - | - | - | - | - | 29,054 | 143 | 29,197 |
| Net income | - | 7,437 | - | - | - | 145,000 | - | 598 | 153,035 |
| Balance, December 31, 2022 | 7,000 | $175,000 | 90,173,424 | $9 | $4,658,570 | $(228,132) | $23,551 | $1,392 | $4,630,390 |
| Cash dividends declared per depositary share of Series A preferred stock: |  |  |  |  |  |  |  |  |  |
| For the three months ended March 31, 2022 | $ | 0.266 |  |  |  |  |  |  |  |
| For the three months ended June 30, 2022 | $ | 0.266 |  |  |  |  |  |  |  |
| For the three months ended September 30, 2022 | $ | 0.266 |  |  |  |  |  |  |  |
| For the three months ended December 31, 2022 | $ | 0.266 |  |  |  |  |  |  |  |
| Cash dividends declared per common share: |  |  |  |  |  |  |  |  |  |
| For the three months ended March 31, 2022 |  |  |  | $0.681 |  |  |  |  |  |
| For the three months ended June 30, 2022 |  |  |  | $0.702 |  |  |  |  |  |
| For the three months ended September 30, 2022 |  |  |  | $0.702 |  |  |  |  |  |
| For the three months ended December 31, 2022 |  |  |  | $0.720 |  |  |  |  |  |

*See accompanying notes to consolidated financial statements.*

F-8

# **AGREE REALTY CORPORATION**  
 **CONSOLIDATED STATEMENTS OF CASH FLOWS**  
 (In thousands)

|  | Year Ended |  |  |
| --- | --- | --- | --- |
|  | December 31, 2022 | December 31, 2021 | December 31, 2020 |
| Cash Flows from Operating Activities |  |  |  |
| Net income | $153,035 | $122,876 | $91,972 |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |
| Depreciation and amortization | 133,570 | 95,729 | 66,758 |
| Amortization from above (below) market lease intangibles, net | 33,337 | 24,284 | 15,885 |
| Amortization from financing costs, credit facility costs and debt discount | 4,065 | 2,360 | 1,444 |
| Stock-based compensation | 6,464 | 4,798 | 4,702 |
| Straight-line accrued rent | (13,176) | (11,857) | (7,818) |
| Provision for impairment | 1,015 | 1,919 | 4,137 |
| Settlement of interest rate swap | 28,414 | 16,748 | (22,668) |
| (Gain) loss on sale of assets | (5,341) | (14,941) | (8,004) |
| Write-off of unamortized financing costs upon debt extinguishment | - | 1,250 | - |
| (Increase) decrease in accounts receivable | 799 | (4,447) | (4,165) |
| (Increase) decrease in other assets | 4,891 | (3,231) | (1,503) |
| Increase (decrease) in accounts payable, accrued expenses, and other liabilities | 15,048 | 10,827 | 2,216 |
| Net Cash Provided by Operating Activities | 362,121 | 246,315 | 142,956 |
| Cash Flows from Investing Activities |  |  |  |
| Acquisition of real estate investments and other assets | (1,578,511) | (1,400,685) | (1,326,696) |
| Development of real estate investments and other assets, net of reimbursements (including capitalized interest of $1,261 in 2022, $249 in 2021, and $109 in 2020) | (81,875) | (41,464) | (19,617) |
| Payment of leasing costs | (503) | (468) | (1,227) |
| Net proceeds from sale of assets | 44,914 | 56,002 | 47,698 |
| Net Cash Used in Investing Activities | (1,615,975) | (1,386,615) | (1,299,842) |
| Cash Flows from Financing Activities |  |  |  |
| Proceeds from Series A preferred stock offering, net | - | 170,308 | - |
| Proceeds from common stock offerings, net | 1,257,823 | 744,847 | 896,118 |
| Repurchase of common shares | (1,912) | (1,813) | (1,641) |
| Unsecured revolving credit facility borrowings | 1,035,000 | 594,000 | 743,000 |
| Unsecured revolving credit facility repayments | (1,095,000) | (526,000) | (740,000) |
| Payments of mortgage notes payable | (24,490) | (799) | (3,683) |
| Payments of unsecured term loans | - | (240,000) | - |
| Proceeds from senior unsecured notes | 297,513 | 640,623 | 349,745 |
| Payment of Series A preferred dividends | (7,438) | (1,529) | - |
| Payment of common stock dividends | (220,304) | (194,296) | (116,112) |
| Distributions to non-controlling interest | (971) | (1,042) | (824) |
| Payments for financing costs | (2,708) | (6,704) | (3,919) |
| Net Cash Provided by Financing Activities | 1,237,513 | 1,177,595 | 1,122,684 |
| Net Increase (Decrease) in Cash and Cash Equivalents and Cash Held in Escrow | (16,341) | 37,295 | (34,202) |
| Cash and cash equivalents and cash held in escrow, beginning of period | 45,250 | 7,955 | 42,157 |
| Cash and cash equivalents and cash held in escrow, end of period | $28,909 | $45,250 | $7,955 |
| Supplemental Disclosure of Cash Flow Information |  |  |  |
| Cash paid for interest (net of amounts capitalized) | $58,784 | $56,150 | $37,710 |
| Cash paid for income tax | $2,395 | $1,816 | $1,150 |
| Supplemental Disclosure of Non-Cash Investing and Financing Activities |  |  |  |
| Lease right of use assets added under new ground leases | $1,816 | $6,302 | $1,064 |
| Mortgage note payable assumed, net of $2,548 mortgage debt discount | $39,702 | $ - | $ - |
| Series A preferred dividends declared and unpaid | $620 | $620 | $ - |
| Common stock dividends and limited partners' distributions declared and unpaid | $21,725 | $16,261 | $34,545 |
| Change in accrual of development, construction and other real estate investment costs | $3,199 | $(5,537) | $10,465 |

*See accompanying notes to consolidated financial statements.*

F-9

Agree Realty Corporation

Notes to Consolidated Financial Statements^{}[] December 31, 2022

# **Note 1 - Organization**

Agree Realty Corporation (the “Company”), a Maryland corporation, is a fully integrated real estate investment trust (“REIT”) primarily focused on the ownership, acquisition, development and management of retail properties net leased to industry leading tenants. The Company was founded in 1971 by its current Executive Chairman, Richard Agree, and its common stock was listed on the New York Stock Exchange in 1994.

The Company’s assets are held by, and all of our operations are conducted through, directly or indirectly, Agree Limited Partnership (the “Operating Partnership”), of which Agree Realty Corporation is the sole general partner and in which it held a 99.6% common equity interest as of December 31, 2022. There is a one-for-one relationship between the limited partnership interests in the Operating Partnership (“Operating Partnership Common Units”) owned by the Company and shares of Company common stock outstanding. The Company also owns a Series A preferred equity interest in the Operating Partnership. This preferred equity interest corresponds on a one-for-one basis to the Company’s Series A Preferred Stock (see Note 6- *Common and Preferred Stock*), providing income and distributions to the Company equal to the dividends payable on that stock. Under the agreement of limited partnership of the Operating Partnership, the Company, as the sole general partner, has exclusive responsibility and discretion in the management and control of the Operating Partnership.

The terms “Agree Realty,” the “Company,” “Management,” “we,” “our” or “us” refer to Agree Realty Corporation and all of its consolidated subsidiaries, including the Operating Partnership.

# **Note 2 - Summary of Significant Accounting Policies**

# **Basis of Accounting Principles of Consolidation**

The consolidated financial statements of Agree Realty Corporation include the accounts of the Company, the Operating Partnership and its wholly owned subsidiaries. The Company, as the sole general partner, held 99.6% and 99.5% of the Operating Partnership common equity as of December 31, 2022 and 2021, respectively, as well as the Series A preferred equity interest. All material intercompany accounts and transactions are eliminated, including the Company’s Series A preferred equity interest in the Operating Partnership.

At December 31, 2022 and 2021, the non-controlling interest in the Operating Partnership consisted of a 0.4% and 0.5% ownership interest in the Operating Partnership held by the Company’s founder and chairman, respectively. The Operating Partnership Common Units may, under certain circumstances, be exchanged for shares of common stock. The Company as sole general partner of the Operating Partnership has the option to settle exchanged Operating Partnership Common Units held by others for cash based on the current trading price of its shares. Assuming the exchange of all non-controlling Operating Partnership Units, there would have been 90,521,043 shares of common stock outstanding at December 31, 2022.

# **Real Estate Investments**

The Company records the acquisition of real estate at cost, including acquisition and closing costs. For properties developed by the Company, all direct and indirect costs related to planning, development and construction, including interest, real estate taxes and other miscellaneous costs incurred during the construction period, are capitalized for financial reporting purposes and recorded as property under development until construction has been completed.

# **Assets Held for Sale**

Assets are classified as real estate held for sale based on specific criteria as outlined in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 360, *Property, Plant & Equipment*. Properties classified as real estate held for sale are recorded at the lower of their carrying value or their fair value, less anticipated selling costs. Any properties classified as held for sale are not depreciated. Assets are generally classified as real estate

F-10

Agree Realty Corporation

Notes to Consolidated Financial Statements^{}[] December 31, 2022

held for sale once management has actively engaged in marketing the asset and has received a firm purchase commitment that is expected to close within one year.

### **Acquisitions of Real Estate**

The acquisition of property for investment purposes is typically accounted for as an asset acquisition. The Company allocates the purchase price to land, building, assumed debt, if any, and identified intangible assets and liabilities, based in each case on their relative estimated fair values and without giving rise to goodwill. Intangible assets and liabilities represent the value of in-place leases and above- or below-market leases. In making estimates of fair values, the Company may use various sources, including data provided by independent third parties, as well as information obtained by the Company as a result of its due diligence, including expected future cash flows of the property and various characteristics of the markets where the property is located.

In allocating the fair value of the identified tangible and intangible assets and liabilities of an acquired property, land is valued based upon comparable market data or independent appraisals. Buildings are valued on an as-if vacant basis based on a cost approach utilizing estimates of cost and the economic age of the building or an income approach utilizing various market data. In-place lease intangibles are valued based on the Company's estimates of costs related to tenant acquisition and the carrying costs that would be incurred during the time it would take to locate a tenant if the property were vacant, considering current market conditions and costs to execute similar leases at the time of the acquisition. Above- and below-market lease intangibles are recorded based on the present value of the difference between the contractual amounts to be paid pursuant to the leases at the time of acquisition and the Company's estimate of current market lease rates for the property. In the case of sale-leaseback transactions, it is typically assumed that the lease is not in-place prior to the close of the transaction.

### **Depreciation and Amortization**

Land, buildings, and improvements are recorded and stated at cost. The Company's properties are depreciated using the straight-line method over the estimated remaining useful life of the assets, which are generally 40 years for buildings and 10 to 20 years for improvements. Properties classified as held for sale and properties under development or redevelopment are not depreciated. Major replacements and betterments, which improve or extend the life of the asset, are capitalized and depreciated over their estimated useful lives.

In-place lease intangible assets and the capitalized above- and below-market lease intangibles are amortized over the non-cancelable term of the lease as well any option periods included in the estimated fair value. In-place lease intangible assets are amortized to amortization expense and above- and below-market lease intangibles are amortized as a net adjustment to rental income. In the event of early lease termination, the remaining net book value of any above- or below-market lease intangible is recognized as an adjustment to rental income.

The following schedule summarizes the Company's amortization of lease intangibles for the years ended December 31, 2022, 2021, and 2020 (*presented in thousands*):

|  | For the Year Ended December 31, |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |
| Lease intangibles (in-place) | $43,553 | $27,827 | $17,413 |
| Lease intangibles (above-market) | 39,603 | 30,596 | 21,523 |
| Lease intangibles (below-market) | (6,266) | (6,312) | (5,638) |
| Total | $76,890 | $52,111 | $33,298 |

F-11

Agree Realty Corporation

Notes to Consolidated Financial Statements^{}[] December 31, 2022

The following schedule represents estimated future amortization of lease intangibles as of December 31, 2022 (*presented in thousands*):

| Year Ending December 31, | 2023 | 2024 | 2025 | 2026 | 2027 | Thereafter | Total |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Lease intangibles (in-place) | $51,612 | $48,132 | $45,716 | $42,671 | $38,031 | $182,239 | $408,401 |
| Lease intangibles (above-market) | 38,703 | 34,651 | 32,317 | 30,588 | 28,224 | 226,564 | 391,047 |
| Lease intangibles (below-market) | (5,591) | (4,920) | (4,485) | (4,131) | (3,677) | (13,910) | (36,714) |
| Total | $84,724 | $77,863 | $73,548 | $69,128 | $62,578 | $394,893 | $762,734 |

### **Impairments**

The Company reviews real estate investments and related lease intangibles for possible impairment when certain events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable through operations plus estimated disposition proceeds. Events or changes in circumstances that may occur include, but are not limited to, significant changes in real estate market conditions, estimated residual values, our ability or expectation to re-lease properties that are vacant or become vacant or a change in the anticipated holding period for a property.

Management determines whether an impairment in value has occurred by comparing the estimated future cash flows (undiscounted and without interest charges), including the residual value of the real estate, to the carrying cost of the individual asset.

Impairments are measured to the extent the current book value exceeds the estimated fair value of the asset less disposition costs for any assets classified as held for sale.

The valuation of impaired assets is determined using valuation techniques including discounted cash flow analysis, analysis of recent comparable sales transactions, and/or purchase offers received from third parties, which are Level 3 inputs. The Company may consider a single valuation technique or multiple valuation techniques, as appropriate, when estimating the fair value of its real estate. Estimating future cash flows is highly subjective and estimates can differ materially from actual results.

### **Cash and Cash Equivalents and Cash Held in Escrow**

The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents consist of deposit, checking, and money market accounts. The account balances periodically exceed the Federal Deposit Insurance Corporation (“FDIC”) insurance coverage, and as a result, there is a concentration of credit risk related to amounts on deposit in excess of FDIC insurance coverage. Cash held in escrows primarily relates to proposed like-kind exchange transactions pursued under Section 1031 of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”) and funds restricted through a mortgage agreement. The Company had $27.1 million and $44.0 million in cash and cash equivalents and cash held in escrow as of December 31, 2022 and 2021, respectively, in excess of the FDIC insured limit.

Per the requirements of Accounting Standards Update (“ASU”) 2016-18 (Topic 230, *Statement of Cash Flows*) the following table provides a reconciliation of cash and cash equivalents and cash held in escrow, both as reported within the consolidated Balance Sheets, to the total of the cash, cash equivalents and cash held in escrow as reported within the Consolidated Statements of Cash Flows (*presented in thousands*):

|  | December 31, 2022 | December 31, 2021 |
| --- | --- | --- |
| Cash and cash equivalents | $27,763 | $43,252 |
| Cash held in escrow | 1,146 | 1,998 |
| Total of cash and cash equivalents and cash held in escrow | $28,909 | $45,250 |

F-12

Agree Realty Corporation

Notes to Consolidated Financial Statements^{}[] December 31, 2022

### **Revenue Recognition and Accounts Receivable**

The Company leases real estate to its tenants under long-term net leases which are accounted for as operating leases. Under this method, leases that have fixed and determinable rent increases are recognized on a straight-line basis over the lease term. Rental increases based upon changes in the consumer price indexes, or other variable factors, are recognized only after changes in such factors have occurred and are then applied according to the lease agreements. Certain leases also provide for additional rent based on tenants' sales volumes. These rents are recognized when determinable after the tenant exceeds a sales breakpoint.

Recognizing rent escalations on a straight-line method results in rental revenue in the early years of a lease being higher than actual cash received, creating a straight-line rent receivable asset which is included in the Accounts Receivable - Tenants line item in the Consolidated Balance Sheets. The balance of straight-line rent receivables at December 31, 2022 and 2021 was $53.9 million and $40.9 million, respectively. To the extent any of the tenants under these leases become unable to pay their contractual cash rents, the Company may be required to write down the straight-line rent receivable from those tenants, which would reduce rental income.

The Company reviews the collectability of charges under its tenant operating leases on a regular basis, taking into consideration changes in factors such as the tenant's payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area where the property is located. In the event that collectability with respect to any tenant changes, the Company recognizes an adjustment to rental revenue. The Company's review of collectability of charges under its operating leases also includes any accrued rental revenues related to the straight-line method of reporting rental revenue.

As of December 31, 2022, the Company had seven leases across five tenants where collection is no longer considered probable. For these tenants, the Company is recording rental income on a cash basis and has written off any outstanding receivables, including straight-line rent receivables. Adjustments to rental revenue related to potentially uncollectible charges under these tenant leases resulted in a reduction to Rental Income and Net Income of $0.4 million for the year-ended December 31, 2022.

In addition to the tenant-specific collectability assessment performed, the Company may also recognize a general allowance, as a reduction to rental revenue, for its operating lease receivables which are not expected to be fully collectible based on the potential for settlement of arrears. There was no general allowance as of December 31, 2022 and $0.8 million was recognized as of December 31, 2021.

The Company's leases provide for reimbursement from tenants for common area maintenance, insurance, real estate taxes and other operating expenses. A portion of the Company's operating cost reimbursement revenue is estimated each period and is recognized as rental revenue in the period the recoverable costs are incurred and accrued, and the related revenue is earned. The balance of unbilled operating cost reimbursement receivable at December 31, 2022 and 2021 was $11.1 million and $9.1 million, respectively. Unbilled operating cost reimbursement receivable is reflected in Accounts Receivable - Tenants, net in the Consolidated Balance Sheets.

The Company has adopted the practical expedient in FASB ASC Topic 842, *Leases ('ASC 842')* that allows lessors to combine non-lease components with the lease components when the timing and patterns of transfer for the lease and non-lease components are the same and the lease is classified as an operating lease. As a result, all rentals and reimbursements pursuant to tenant leases are reflected as one line, 'Rental Income,' in the Consolidated Statement of Operations and Comprehensive Income.

### **Earnings per Share**

Earnings per share of common stock has been computed pursuant to the guidance in the FASB ASC Topic 260, *Earnings Per Share*. The guidance requires the classification of the Company's unvested restricted stock, which contain rights to receive non-forfeitable dividends, as participating securities requiring the two-class method of computing net income per

F-13

Agree Realty Corporation

Notes to Consolidated Financial Statements^{}[] December 31, 2022

share of common stock. In accordance with the two-class method, earnings per share has been computed by dividing the net income less net income attributable to unvested restricted shares by the weighted average number of shares of common stock outstanding less unvested restricted shares. Diluted earnings per share is computed by dividing net income by the weighted average shares of common stock and potentially dilutive securities in accordance with the treasury stock method.

The following is a reconciliation of the numerator and denominator used in the computation of basic and diluted net earnings per share of common stock for each of the periods presented (*presented in thousands, except for share data*):

|  | Year Ended December 31, |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |
| Net income attributable to Agree Realty Corporation | $152,437 | $122,273 | $91,381 |
| Less: Series A preferred stock dividends | (7,437) | (2,148) | - |
| Net income attributable to common stockholders | 145,000 | 120,125 | 91,381 |
| Less: Income attributable to unvested restricted shares | (376) | (369) | (297) |
| Net income used in basic and diluted earnings per share | $144,624 | $119,756 | $91,084 |
| Weighted average number of common shares outstanding | 78,885,063 | 67,004,069 | 52,013,137 |
| Less: Unvested restricted stock | (225,730) | (201,827) | (174,918) |
| Weighted average number of common shares outstanding used in basic earnings per share | 78,659,333 | 66,802,242 | 51,838,219 |
| Weighted average number of common shares outstanding used in basic earnings per share | 78,659,333 | 66,802,242 | 51,838,219 |
| Effect of dilutive securities: |  |  |  |
| Share-based compensation | 129,474 | 118,460 | 95,103 |
| 2019 ATM Forward Equity Offerings | - | - | 14,289 |
| 2020 ATM Forward Equity Offerings | - | 153,200 | 19,777 |
| April 2020 Forward Equity Offerings | - | - | 429,346 |
| 2021 ATM Forward Equity Offerings | - | 50,757 | - |
| December 2021 Forward Offering | 89,963 | 14,420 | - |
| 2022 ATM Forward Equity Offerings | 63,381 | - | - |
| May 2022 Forward Offering | 173,429 | - | - |
| September 2022 Forward Equity Offering | 48,806 | - | - |
| Weighted average number of common shares outstanding used in diluted earnings per share | 79,164,386 | 67,139,079 | 52,396,734 |

For the year ended December 31, 2022, 62 shares of common stock related to restricted shares granted in 2022 were anti-dilutive and were not included in the computation of diluted earnings per share.

For the year ended December 31, 2021, 849 shares of common stock related to the 2021 ATM forward equity offerings, 5,360 shares of common stock related to the 2020 ATM forward equity offerings, and 2,092 restricted shares were anti-dilutive and were not included in the computation of diluted earnings per share.

For the year ended December 31, 2020, 27,753 shares of common stock related to the 2020 ATM forward equity offerings, 17,114 shares of common stock related to the 2019 ATM forward equity offerings, 1,547 performance units were anti-dilutive and were not included in the computation of diluted earnings per share.

### **Forward Equity Sales**

The Company occasionally sells shares of common stock through forward sale agreements to enable the Company to set the price of such shares upon pricing the offering (subject to certain adjustments) while delaying the issuance of such shares and the receipt of the net proceeds by the Company.

F-14

Agree Realty Corporation

Notes to Consolidated Financial Statements^{}[] December 31, 2022

To account for the forward sale agreements, the Company considers the accounting guidance governing financial instruments and derivatives. To date, the Company has concluded that its forward sale agreements are not liabilities as they do not embody obligations to repurchase its shares nor do they embody obligations to issue a variable number of shares for which the monetary value are predominantly fixed, varying with something other than the fair value of the shares, or varying inversely in relation to its shares. The Company then evaluates whether the agreements meet the derivatives and hedging guidance scope exception to be accounted for as equity instruments. The Company has concluded that the agreements are classifiable as equity contracts based on the following assessments: (i) none of the agreements' exercise contingencies are based on observable markets or indices besides those related to the market for the Company's own stock price and operations; and (ii) none of the settlement provisions precluded the agreements from being indexed to its own stock.

The Company also considers the potential dilution resulting from the forward sale agreements on the earnings per share calculations. The Company uses the treasury stock method to determine the dilution resulting from forward sale agreements during the period of time prior to settlement.

### **Equity Offering Costs**

Underwriting commissions and offering costs of equity offerings have been reflected as a reduction of additional paid-in-capital in our Consolidated Balance Sheets.

### **Income Taxes**

The Company has made an election to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code and related regulations. The Company generally will not be subject to federal income taxes on amounts distributed to stockholders, providing it distributes 100% of its REIT taxable income and meets certain other requirements for qualifying as a REIT. For each of the years in the three-year period ended December 31, 2022, the Company believes it has qualified as a REIT. Accordingly, no provision has been made for federal income taxes in the accompanying consolidated financial statements. Notwithstanding the Company's qualification for taxation as a REIT, the Company is subject to certain state taxes on its income and real estate.

Earnings and profits that determine the taxability of distributions to stockholders differ from net income reported for financial reporting purposes due to differences in the estimated useful lives and methods used to compute depreciation and the carrying value (basis) of the investments in properties for tax purposes, among other things.

The Company and its taxable REIT subsidiaries ('TRS') have made a timely TRS election pursuant to the provisions of the REIT Modernization Act. A TRS is able to engage in activities resulting in income that previously would have been disqualified from being eligible REIT income under the federal income tax regulations. As a result, certain activities of the Company which occur within its TRS entity are subject to federal and state income taxes. All provisions for federal income taxes in the accompanying consolidated financial statements are attributable to the Company's TRS.

The Company regularly analyzes its various federal and state filing positions and only recognizes the income tax effect in its financial statements when certain criteria regarding uncertain income tax positions have been met. The Company believes that its income tax positions would more likely than not be sustained upon examination by all relevant taxing authorities. Therefore, no provisions for uncertain income tax positions have been recorded in the consolidated financial statements.

### **Management's Responsibility to Evaluate Our Ability to Continue as a Going Concern**

When preparing financial statements for each annual and interim reporting period, management has the responsibility to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern within one year after the date that the financial statements are issued. In making its evaluation, the Company considers, among other things, any risks and/or uncertainties to its results of

F-15

Agree Realty Corporation

Notes to Consolidated Financial Statements^{}[] December 31, 2022

operations, contractual obligations in the form of near-term debt maturities, dividend requirements, or other factors impacting the Company's liquidity and capital resources. No conditions or events that raised substantial doubt about the ability to continue as a going concern within one year were identified as of the issuance date of the consolidated financial statements contained in this Annual Report on Form 10-K.

### **Reclassifications**

Certain reclassifications of prior period amounts have been made in the consolidated financial statements and footnotes in order to conform to the current presentation.

### **Segment Reporting**

The Company is primarily in the business of acquiring, developing and managing retail real estate. The Company's chief operating decision maker, which is its Chief Executive Officer, does not distinguish or group operations on a geographic or other basis when assessing the financial performance of our portfolio of properties. Accordingly, the Company has a single reportable segment for disclosure purposes.

### **Use of Estimates**

The preparation of financial statements in conformity with U.S. generally accepted accounting principles ('GAAP') requires management to make estimates and assumptions that affect the reported amounts of (1) assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements, and (2) revenues and expenses during the reporting period. Actual results could differ from those estimates.

### **Fair Values of Financial Instruments**

The Company's estimates of fair value of financial and non-financial assets and liabilities are based on the framework established in the fair value accounting guidance, ASC Topic 820 *Fair Value Measurement*. The framework specifies a hierarchy of valuation inputs which was established to increase consistency, clarity and comparability in fair value measurements and related disclosures. The guidance describes a fair value hierarchy based on three levels of inputs that may be used to measure fair value, two of which are considered observable and one that is considered unobservable. The following describes the three levels:

Level 1 - Valuation is based upon quoted prices in active markets for identical assets or liabilities.

Level 2 - Valuation is based upon inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 - Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include option pricing models, discounted cash flow models and similar techniques.

### **Recent Accounting Pronouncements**

In August 2020, the FASB issued Accounting Standards Update ('ASU') 2020-06, 'Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity' ('ASU 2020-06'). The guidance in ASU 2020-06 simplifies the accounting for convertible debt and convertible preferred stock by removing the requirements to separately present certain conversion features in equity. In addition, the amendments in the ASU 2020-06 also simplify

F-16

Agree Realty Corporation

Notes to Consolidated Financial Statements^{}[] December 31, 2022

the guidance in ASC Subtopic 815-40, *Derivatives and Hedging: Contracts in Entity’s Own Equity*, by removing certain criteria that must be satisfied in order to classify a contract as equity, which is expected to decrease the number of freestanding instruments and embedded derivatives accounted for as assets or liabilities. Finally, the amendments revise the guidance on calculating earnings per share, requiring use of the if-converted method for all convertible instruments and rescinding an entity’s ability to rebut the presumption of share settlement for instruments that may be settled in cash or other assets. The Company adopted this guidance on January 1, 2022 and the adoption did not impact its financial statements.

In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848)” (“ASU 2020-04”). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and able to be elected over time as reference rate reform activities occur. The Company applied the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserved the presentation of derivatives consistent with past presentation. The Company terminated all LIBOR-indexed derivatives during the year ended December 31, 2022 and has no derivative outstanding as of December 31, 2022. In addition, the Company entered into an amendment to its Revolving Credit Facility which converted the interest rate from a spread over LIBOR to a spread over Secured Overnight Financing Rate (“SOFR”) subsequent to the termination of the LIBOR-indexed derivatives (see *Note 5 - Debt*). Going forward, the Company does not expect the guidance will have a material impact on its financial statements.

In March 2022, the FASB issued ASU 2022-03, “Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (Topic 820)” (“ASU 2022-03”). ASU 2022-03 clarifies that contractual sale restrictions on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, are not considered in measuring the fair value of equity securities. In addition, the amendment requires the disclosure of: (1) the fair value of equity securities subject to contractual sale restrictions reflected in the balance sheet, (2) the nature and remaining duration of the restrictions, and (3) any circumstances that could cause a lapse in the restrictions. The amendments in ASU 2022-03 are effective for the Company for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The amendment is applied prospectively and early adoption is permitted. The Company continues to evaluate the potential impact of the guidance.

### Note 3 - Leases

#### Tenant Leases

The Company is primarily focused on the ownership, acquisition, development and management of retail properties leased to industry leading tenants. As of December 31, 2022, the Company’s portfolio was approximately 99.7% leased and had a weighted average remaining lease term (excluding extension options) of approximately 8.8 years. A significant majority of its properties are leased to national tenants and approximately 67.8% of its annualized base rent was derived from tenants, or parent entities thereof, with an investment grade credit rating from S&P Global Ratings, Moody’s Investors Service, Fitch Ratings or the National Association of Insurance Commissioners.

Substantially all of the Company’s tenants are subject to net lease agreements. A net lease typically requires the tenant to be responsible for minimum monthly rent and actual property operating expenses incurred, including property taxes, insurance and maintenance. In addition, the Company’s tenants are typically subject to future rent increases based on fixed amounts or increases in the consumer price index and certain leases provide for additional rent calculated as a percentage of the tenants’ gross sales above a specified level. Certain of the Company’s properties are subject to leases under which it retains responsibility for specific costs and expenses of the property.

The Company’s leases typically provide the tenant one or more multi-year renewal options to extend their leases, subject to generally the same terms and conditions, including rent increases, consistent with the initial lease term.

F-17

Agree Realty Corporation

Notes to Consolidated Financial Statements^{}[] December 31, 2022

The Company attempts to maximize the amount it expects to derive from the underlying real estate property following the end of the lease, to the extent it is not extended. The Company maintains a proactive leasing program that, combined with the quality and locations of its properties, has made its properties attractive to tenants. The Company intends to continue to hold its properties for long-term investment and, accordingly, places a strong emphasis on the quality of construction and an on-going program of regular and preventative maintenance. However, the residual value of a real estate property is still subject to various market-specific, asset-specific, and tenant-specific risks and characteristics. As the classification of a lease is dependent on the fair value of its cash flows at lease commencement, the residual value of a property represents a significant assumption in its accounting for tenant leases.

The Company has elected the practical expedient in ASC 842 on not separating non-lease components from associated lease components. The lease and non-lease components combined as a result of this election largely include tenant rentals and maintenance charges, respectively. The Company applies the accounting requirements of ASC 842 to the combined component.

The following table includes information regarding contractual lease payments for the Company's operating leases for which it is the lessor, for the years ended December 31, 2022, 2021 and 2020 (*presented in thousands*).

|  | For the Year Ended December 31, |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |
| Total lease payments | $450,369 | $352,797 | $257,390 |
| Less: Operating cost reimbursements and percentage rents | 47,962 | 36,929 | 28,248 |
| Total non-variable lease payments | $402,407 | $315,868 | $229,142 |

At December 31, 2022, future non-variable lease payments to be received from the Company's operating leases for the next five years and thereafter are as follows (*presented in thousands*):

| Year Ending December 31, | 2023 | 2024 | 2025 | 2026 | 2027 | Thereafter | Total |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Future non-variable lease payments | $468,723 | $463,245 | $452,755 | $433,725 | $409,563 | $2,113,349 | $4,341,360 |

### Deferred Revenue

As of December 31, 2022 and 2021, there was $18.1 million and $13.5 million, respectively, in deferred revenues resulting from rents paid in advance. Deferred revenues are recognized within Accounts Payable, Accrued Expenses, and Other Liabilities on the Consolidated Balance Sheets as of these dates.

### Land Lease Obligations

The Company is the lessee under land lease agreements for certain of its properties. ASC 842 requires a lessee to recognize right of use assets and lease obligation liabilities that arise from leases, whether qualifying as operating or finance. As of December 31, 2022 and 2021, the Company had $60.9 million and $59.7 million respectively, of right of use assets, net, recognized within Other Assets in the Consolidated Balance Sheets, while the corresponding lease obligations, net, of $23.6 million and $24.1 million, respectively, were recognized within Accounts Payable, Accrued Expenses, and Other Liabilities on the Consolidated Balance Sheets as of these dates.

The Company's land leases do not include any variable lease payments. These leases typically provide multi-year renewal options to extend their term as lessee at the Company's option. Option periods are included in the calculation of the lease obligation liability only when options are reasonably certain to be exercised. Certain of the Company's land leases qualify

F-18

Agree Realty Corporation

Notes to Consolidated Financial Statements^{}[] December 31, 2022

as finance leases as a result of purchase options that are reasonably certain of being exercised or automatic transfer of title to the Company at the end of the lease term.

Amortization of right of use assets for operating land leases is classified as land lease expense and was $1.6 million, $1.6 million, and $1.3 million for the years ending December 31, 2022, 2021, and 2020, respectively. There was no amortization of right of use assets for finance land leases, as the underlying leased asset (land) has an infinite life. Interest expense on finance land leases was $0.3 million and $0.2 million during the years ended December 31, 2022 and 2021, respectively, while there was no such expense incurred during the years ended December 31, 2020.

In calculating its lease obligations under ground leases, the Company uses discount rates estimated to be equal to what it would have to pay to borrow on a collateralized basis over a similar term, for an amount equal to the lease payments, in a similar economic environment.

The following tables include information on the Company’s land leases for which it is the lessee, for the years ending December 31, 2022, 2021, and 2020 (*presented in thousands*).

|  | Year Ended |  |  |
| --- | --- | --- | --- |
|  | December 31, 2022 | December 31, 2021 | December 31, 2020 |
| Operating leases: |  |  |  |
| Operating cash outflows | $1,197 | $1,112 | $1,069 |
| Weighted-average remaining lease term - operating leases (years) | 33.5 | 33.8 | 38.3 |
| Finance leases: |  |  |  |
| Operating cash outflows | $255 | $215 | $ - |
| Financing cash outflows | $81 | $93 | $ - |
| Weighted-average remaining lease term - finance leases (years) | 1.8 | 2.8 | - |
| Supplemental Disclosure: |  |  |  |
| Right-of-use assets obtained in exchange for new lease liabilities, including value assigned to above market lease terms | $1,816 | $6,302 | $1,064 |
| Right-of-use assets net change | $1,816 | $6,302 | $1,064 |

# **Maturity Analysis of Lease Liabilities for Operating Leases (presented in thousands)**

| Year Ending December 31, | 2023 | 2024 | 2025 | 2026 | 2027 | Thereafter | Total |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Lease payments | $1,197 | $1,197 | $1,197 | $1,195 | $1,042 | $28,809 | $34,637 |
| Imputed interest | (711) | (690) | (669) | (647) | (627) | (13,864) | (17,208) |
| Total lease liabilities | $486 | $507 | $528 | $548 | $415 | $14,945 | $17,429 |

The weighted-average discount rate used in computing operating and finance lease obligations approximated 4% at December 31, 2022 and 2021.

# **Maturity Analysis of Lease Liabilities for Finance Leases (presented in thousands)**

| Year Ending December 31, | 2023 | 2024 | 2025 | 2026 | 2027 | Thereafter | Total |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Lease payments | $336 | $6,251 | $ - | $ - | $ - | $ - | $6,587 |
| Imputed interest | (252) | (207) | - | - | - | - | (459) |
| Total lease liabilities | $84 | $6,044 | $ - | $ - | $ - | $ - | $6,128 |

F-19

Agree Realty Corporation

Notes to Consolidated Financial Statements^{}[] December 31, 2022

## Note 4 - Real Estate Investments

### Real Estate Portfolio

As of December 31, 2022, the Company owned 1,839 properties, with a total gross leasable area (“GLA”) of approximately 38.1 million square feet. Net Real Estate Investments totaled $5.74 billion as of December 31, 2022. As of December 31, 2021, the Company owned 1,404 properties, with a total GLA of approximately 29.1 million square feet. Net Real Estate Investments totaled $4.37 billion as of December 31, 2021.

### Acquisitions

During 2022, the Company purchased 434 retail net lease assets for approximately $1.6 billion, which includes acquisition, closing costs and the assumption of a $42.3 million mortgage note. These properties are located in 43 states and had a weighted average lease term of approximately 10.2 years. The aggregate 2022 acquisitions were allocated approximately $387.7 million to land, $1.0 billion to buildings and improvements, $204.9 million to lease intangibles, net and $2.5 million to assumed mortgage debt discount.

During 2021, the Company purchased 290 retail net lease assets for approximately $1.39 billion, which includes acquisition and closing costs. These properties are located in 43 states and had a weighted average lease term of approximately 11.5 years. The aggregate 2021 acquisitions were allocated approximately $476.8 million to land, $654.3 million to buildings and improvements, and $250.7 million to lease intangibles.

The 2022 and 2021 acquisitions were primarily funded as cash purchases and the assumption of a mortgage note payable with a principal balance of $42.3 million. There was no material contingent consideration associated with these acquisitions.

None of the Company’s acquisitions during 2022 or 2021 caused any new or existing tenant to comprise 10% or more of the Company’s total assets or generate 10% or more of its total annualized contractual base rent at December 31, 2022 or 2021.

### Developments

During 2022, the Company completed seven development or Partner Capital Solutions projects. During 2021, four such projects were completed. At December 31, 2022, the Company had 24 development or Partner Capital Solutions projects under construction.

### Dispositions

During 2022, the Company sold real estate properties for net proceeds of $44.9 million and recorded a net gain of $5.3 million.

During 2021, the Company sold real estate properties for net proceeds of $56.0 million and recorded a net gain of $14.9 million.

During 2020, the Company sold real estate properties for net proceeds of $47.7 million and recorded a net gain of $8.0 million.

F-20

Agree Realty Corporation

Notes to Consolidated Financial Statements^{}[] December 31, 2022

# **Assets Held for Sale**

The Company did not classify any operating properties as real estate held for sale at December 31, 2022 and classified one operating property as real estate held for sale as of December 31, 2021, the assets for which are separately presented in the Consolidated Balance Sheets.

Real estate held for sale consisted of the following as of December 31, 2022 and 2021 (*presented in thousands*):

|  | December 31, 2022 | December 31, 2021 |
| --- | --- | --- |
| Land | $ - | $4,485 |
| Building | - | - |
| Lease intangibles - asset | - | 1,213 |
|  | - | 5,698 |
| Accumulated depreciation and amortization, net | - | (22) |
| Total Real Estate Held for Sale, net | $ - | $5,676 |

# **Provisions for Impairment**

As a result of the Company’s review of real estate investments it recognized real estate impairment charges of $1.0 million, $1.9 million and $4.1 million for the years ended December 31, 2022, 2021, and 2020, respectively. The estimated fair value of the impaired real estate assets at their time of impairment during 2022, 2021, and 2020 was $1.8 million, $1.0 million and $11.9 million, respectively.

# **Note 5 - Debt**

As of December 31, 2022, the Company had total gross indebtedness of $1.96 billion, including (i) $50.4 million of mortgage notes payable; (ii) $1.81 billion of senior unsecured notes; and (iv) $100.0 million of borrowings under the Revolving Credit Facility (defined below).

# **Mortgage Notes Payable**

As of December 31, 2022, the Company had total gross mortgage indebtedness of $50.4 million, which was collateralized by related real estate and tenants’ leases with an aggregate net book value of $86.5 million. The weighted average interest rate on the Company’s mortgage notes payable was 3.94% as of December 31, 2022 and 4.16% as of December 31, 2021.

F-21

Agree Realty Corporation

Notes to Consolidated Financial Statements^{}[] December 31, 2022

Mortgages notes payable consisted of the following (*presented in thousands*):

|  | December 31, 2022 | December 31, 2021 |
| --- | --- | --- |
| Note payable in monthly installments of interest only at 3.60% per annum, with a balloon payment paid in December 2022 | $ - | $23,640 |
| Note payable in monthly installments of interest only at 5.01% per annum, with a balloon payment due September 2023 | 4,622 | 4,622 |
| Note payable in monthly installments of $92 including interest at 6.27% per annum, with a final monthly payment due July 2026 | 3,523 | 4,373 |
| Note payable in monthly installments of interest only at 3.63% per annum, with a balloon payment due December 2029 | 42,250 | - |
| Total principal | 50,395 | 32,635 |
| Unamortized debt issuance costs and assumed debt discount | (2,424) | (206) |
| Total | $47,971 | $32,429 |

In connection with a four-property acquisition during the twelve months ended December 31, 2022, the Company assumed an interest only, mortgage note payable with a principal balance of $42.3 million and stated interest rate of 3.63% maturing December 2029. In connection with the purchase price allocation completed, the mortgage debt was fair valued as of the date of acquisition resulting in a $2.5 million debt discount that will be amortized over the term of the mortgage note payable into Interest Expense in the Consolidated Statements of Operations and Comprehensive Income.

The mortgage loans encumbering the Company’s properties are generally non-recourse, subject to certain exceptions for which we would be liable for any resulting losses incurred by the lender. These exceptions vary from loan to loan, but generally include fraud or material misrepresentations, misstatements or omissions by the borrower, intentional or grossly negligent conduct by the borrower that harms the property or results in a loss to the lender, filing of a bankruptcy petition by the borrower, either directly or indirectly, and certain environmental liabilities. At December 31, 2022, there were no mortgage loans with partial recourse to the Company.

The Company has entered into mortgage loans that are secured by multiple properties and contain cross-default and cross-collateralization provisions. Cross-collateralization provisions allow a lender to foreclose on multiple properties in the event that we default under the loan. Cross-default provisions allow a lender to foreclose on the related property in the event a default is declared under another loan.

F-22

Agree Realty Corporation

Notes to Consolidated Financial Statements^{}[] December 31, 2022

# **Senior Unsecured Notes**

The following table presents the senior unsecured notes principal balances net of unamortized debt issuance costs and original issue discounts for the Company's private placement and public offerings as of December 31, 2022, and 2021 (*presented in thousands*):

|  | All-in Interest Rate | Maturity | December 31, 2022 | December 31, 2021 |
| --- | --- | --- | --- | --- |
| 2025 Senior Unsecured Notes | 4.16% | May 2025 | $50,000 | $50,000 |
| 2027 Senior Unsecured Notes | 4.26% | May 2027 | 50,000 | 50,000 |
| 2028 Senior Unsecured Public Notes | 2.11% | June 2028 | 350,000 | 350,000 |
| 2028 Senior Unsecured Notes | 4.42% | July 2028 | 60,000 | 60,000 |
| 2029 Senior Unsecured Notes | 4.19% | September 2029 | 100,000 | 100,000 |
| 2030 Senior Unsecured Notes | 4.32% | September 2030 | 125,000 | 125,000 |
| 2030 Senior Unsecured Public Notes | 3.49% | October 2030 | 350,000 | 350,000 |
| 2031 Senior Unsecured Notes | 4.42% | October 2031 | 125,000 | 125,000 |
| 2032 Senior Unsecured Public Notes | 3.96% | October 2032 | 300,000 | - |
| 2033 Senior Unsecured Public Notes | 2.13% | June 2033 | 300,000 | 300,000 |
| Total Principal |  |  | 1,810,000 | 1,510,000 |
| Unamortized debt issuance costs and original issue discount, net |  |  | (17,953) | (14,800) |
| Total |  |  | $1,792,047 | $1,495,200 |

# *Senior Unsecured Notes - Private Placements*

The 2025 Senior Unsecured Notes, 2027 Senior Unsecured Notes, 2028 Senior Unsecured Notes, 2029 Senior Unsecured Notes, 2030 Senior Unsecured Notes, and 2031 Senior Unsecured Notes (collectively the 'Private Placements') were issued in private placements to individual investors. The Private Placements did not involve a public offering in reliance on the exemption from registration pursuant to Section 4(a)(2) of the Securities Act.

The Operating Partnership issued $125 million 2031 Senior Unsecured Notes in October 2019 with a stated interest rate of 4.47%. In March 2019, the Company entered into forward-starting interest rate swap agreements to fix the interest for $100 million of long-term debt until maturity. The Company terminated the swap agreements at the time of pricing the 2031 Senior Unsecured Notes, which resulted in an effective annual fixed rate of 4.41% for $100 million aggregate principal amount of the 2031 Senior Unsecured Notes. Considering the effect of the terminated swap agreements, the blended all-in rate to the Company for the $125 million aggregate principal amount of 2031 Senior Unsecured Notes is 4.42%.

# *Senior Unsecured Notes - Public Offerings*

The 2030 Senior Unsecured Public Notes, 2028 Senior Unsecured Public Notes, 2033 Senior Unsecured Public Notes and 2032 Senior Unsecured Public Notes (collectively the 'Public Notes') are fully and unconditionally guaranteed by Agree Realty Corporation and certain wholly owned subsidiaries of the Operating Partnership. The Public Notes are governed by an indenture, dated August 17, 2020, among the Operating Partnership, the Company and trustee (as supplemented by an officer's certificate dated at the issuance of each of the Public Notes) (the 'Indenture'). The Indenture contains various restrictive covenants, including limitations on the ability of the guarantors and the issuer to incur additional indebtedness and requirements to maintain a pool of unencumbered assets.

In August 2020, the Operating Partnership completed an underwritten public offering of $350 million aggregate principal amount of 2.900% Notes due 2030 (the '2030 Senior Unsecured Public Notes'). The 2030 Senior Unsecured Public Notes are fully and unconditionally guaranteed by Agree Realty Corporation and certain wholly owned subsidiaries of the Operating Partnership. The terms of the 2030 Senior Unsecured Public Notes are governed by the Indenture (as supplemented by an officer's certificate dated August 17, 2020). The Indenture contains various restrictive covenants,

F-23

Agree Realty Corporation

Notes to Consolidated Financial Statements^{}[] December 31, 2022

including limitations on the ability of the guarantors and the issuer to incur additional indebtedness and requirements to maintain a pool of unencumbered assets.

In August 2020, the Operating Partnership issued $350 million aggregate principal amount of notes at a stated rate of 2.90% due October 2030 (the “2030 Senior Unsecured Public Notes”). The Company terminated related swap agreements of $200.0 million that hedged the 2030 Senior Unsecured Public Notes, paying $23.4 million upon termination. Considering the effect of the terminated swap agreements, the blended all-in rate to the Company for the $350 million aggregate principal amount of 2030 Senior Unsecured Public Notes is 3.49%.

In May 2021, the Operating Partnership issued $350 million aggregate principal amount of notes at a stated interest rate of 2.00% due June 2028 (“2028 Senior Unsecured Public Notes”) and $300 million in aggregate principal amount notes at a stated interest rate of 2.60% due June 2033 (the “2033 Senior Unsecured Public Notes”). The Company terminated related swap agreements of $300 million that hedged the 2033 Senior Unsecured Public Notes, receiving $16.7 million upon termination. Considering the effect of the terminated swap agreements, the blended all-in rates to the Company for the $350 million aggregate principal amount of the 2028 Senior Unsecured Public Notes and the $300 million aggregate principal amount of the 2033 Senior Unsecured Public Notes are 2.11% and 2.13%, respectively.

In August 2022, the Operating Partnership issued the 2032 Senior Unsecured Public Notes in an underwritten public offering of $300 million aggregate principal amount of notes with a stated interest rate of 4.80% due October 2032. The Company terminated related swap agreements of $300 million notional amount that hedged the 2032 Senior Unsecured Public Notes, receiving $28.4 million upon termination. Considering the effect of terminated swap agreements, the blended all-in rate to the Company for the 2032 Senior Unsecured Public Notes is 3.96%.

### **Senior Unsecured Revolving Credit Facility**

In December 2021, the Company entered into a Third Amended and Restated Revolving Credit Agreement which provided for a $1.0 billion senior unsecured revolving credit facility (the “Revolving Credit Facility”) that bore interest based on a pricing grid with a range of 72.5 to 140 basis points over LIBOR, determined by the Company’s credit ratings and leverage ratio. Based on the Company’s credit ratings and leverage ratio at the time of closing, pricing on the Revolving Credit Facility was 77.5 basis points over LIBOR. The Revolving Credit Facility includes an accordion option that allows the Company to request additional lender commitments up to a total of $1.75 billion. The Revolving Credit Facility will mature in January 2026 with Company options to extend the maturity date to January 2027.

In November 2022, the Company entered into a First Amendment to the Third Amended and Restated Revolving Credit Agreement which converted the interest rate on its $1.0 billion Revolving Credit Facility from a spread over LIBOR to a spread over SOFR plus a SOFR adjustment of 10 basis points.

The margins for the Revolving Credit Facility are subject to improvement based on the Company’s leverage ratio, provided its credit ratings meet a certain threshold. Based on the Company’s credit ratings and leverage ratio at the time of closing plus the SOFR adjustment of 10 basis points, pricing on the Revolving Credit Facility was 87.5 basis points over SOFR. In connection with the Company’s ongoing environmental, social and governance (“ESG”) initiatives, pricing may be reduced if specific ESG ratings are achieved.

The Company and Richard Agree, the Executive Chairman of the Company, are parties to a Reimbursement Agreement dated November 18, 2014 (the “Reimbursement Agreement”). Pursuant to the Reimbursement Agreement, Mr. Agree has agreed to reimburse the Company for any loss incurred under the Revolving Credit Facility in an amount not to exceed $14.0 million to the extent that the value of the Operating Partnership’s assets available to satisfy the Operating Partnership’s obligations under the Revolving Credit Facility is less than $14.0 million.

F-24

Agree Realty Corporation

Notes to Consolidated Financial Statements^{}[] December 31, 2022

# **Debt Maturities**

The following table presents scheduled principal payments related to the Company's debt as of December 31, 2022 (*presented in thousands*):

|  | Scheduled Principal | Balloon Payment | Total |
| --- | --- | --- | --- |
| 2023 | $905 | $4,622 | $5,527 |
| 2024 | 963 | - | 963 |
| 2025 | 1,026 | 50,000 | 51,026 |
| 2026 (1) | 629 | 100,000 | 100,629 |
| 2027 | - | 50,000 | 50,000 |
| Thereafter | - | 1,752,250 | 1,752,250 |
| Total scheduled principal payments | $3,523 | $1,956,872 | $1,960,395 |

(1) The Revolving Credit Facility matures in January 2026, with options to extend the maturity to January 2027. The Revolving Credit Facility had a balance of $100.0 million as of December 31, 2022.

# **Loan Covenants**

Certain loan agreements contain various restrictive covenants, including the following financial covenants: maximum leverage ratio, maximum secured leverage ratios, consolidated net worth requirements, a minimum fixed charge coverage ratio, a maximum unencumbered leverage ratio, a minimum unsecured interest expense ratio, a minimum interest coverage ratio, a minimum unsecured debt yield and a minimum unencumbered interest expense ratio. As of December 31, 2022, the most restrictive covenant was the minimum unencumbered interest expense ratio. The Company was in compliance with all of its loan covenants and obligations as of December 31, 2022.

# **Note 6 - Common and Preferred Stock**

# **Shelf Registration**

On May 27, 2020, the Company filed an automatic shelf registration statement on Form S-3 with the Securities and Exchange Commission registering an unspecified amount of common stock, preferred stock, depository shares, warrants and guarantees of debt securities of the Operating Partnership, as well as an unspecified amount of debt securities of the Operating Partnership, at an indeterminate aggregate initial offering price. The Company may periodically offer one or more of these securities in amounts, prices and on terms to be announced when and if these securities are offered. The specifics of any future offerings, along with the use of proceeds of any securities offered, will be described in detail in a prospectus supplement, or other offering materials, at the time of any offering.

F-25

Agree Realty Corporation

Notes to Consolidated Financial Statements^{}[] December 31, 2022

### **Follow-on Common Stock Offerings**

In January 2021, the Company completed a follow-on public offering of 3,450,000 shares of common stock, which included the full exercise of the underwriters' option to purchase an additional 450,000 shares of common stock. The offering resulted in net proceeds to the Company of approximately $221.4 million, after deducting fees and offering expenses payable by the Company.

In June 2021, the Company completed a follow-on public offering of 4,600,000 shares of common stock, which included the full exercise of the underwriters' option to purchase an additional 600,000 shares of common stock. The offering resulted in net proceeds to the Company of approximately $327.0 million, after deducting fees and offering expenses payable by the Company.

In December 2021, the Company completed a follow-on public offering of 5,750,000 shares of common stock, including the full exercise of the underwriters' option to purchase 750,000 shares, in connection with forward sale agreements. The offering resulted in net proceeds to the Company of approximately $368.7 million after deducting fees and expenses and making certain other adjustments as provided in the equity distribution agreements.

In May 2022, the Company completed a follow-on public offering of 5,750,000 shares of common stock, including the full exercise of the underwriters' option to purchase 750,000 shares, in connection with forward sale agreements. The offering resulted in net proceeds to the Company of approximately $386.7 million after deducting fees and expenses and making certain other adjustments as provided in the equity distribution agreements.

In October 2022, the Company completed a follow-on public offering of 5,750,000 shares of common stock, including the full exercise of the underwriters' option to purchase 750,000 shares, in connection with forward sale agreements. Upon settlement, the offering is anticipated to raise net proceeds of approximately $380.7 million after deducting fees and making certain other adjustments as provided in the equity distribution agreements. As of December 31, 2022, the Company settled 1,600,000 shares of these October 2022 forward sale agreements, realizing net proceeds of $106.2 million. The Company is required to settle the outstanding shares of common stock by September 2023.

### **Preferred Stock Offering**

In September 2021, the Company completed an underwritten public offering of depository shares (the 'Depository Shares'), each representing 1/1,000th of a share of Series A Preferred Stock, which resulted in net proceeds to the Company of approximately $170.3 million, after deducting the underwriting discounts and commissions and costs payable by the Company. At the closing, the Company issued 7,000 shares of Series A Preferred Stock (the 'Series A Preferred Shares') to the depository, resulting in the issuance of 7,000,000 Depository Shares. The Company contributed the net proceeds from the sale of the Depository Shares to the Operating Partnership in exchange for 7,000 Series A Preferred Units corresponding to the number of shares of Series A Preferred Stock underlying the Depository Shares.

Dividends on the Series A Preferred Shares will be payable monthly in arrears on the first day of each month (or, if not on a business day, on the next succeeding business day). The dividend rate is 4.25% per annum of the $25,000 (equivalent to $25.00 per Depository Share) liquidation preference. The first pro-rated dividend on the Series A Preferred Shares was paid on October 1, 2021 and was in an amount equivalent to $0.04132 per Depository Share. Subsequent dividends on the Series A Preferred Shares have been and will be in the amount of $0.08854 per Depository Share, equivalent to $1.0625 per annum.

The Company may not redeem the Series A Preferred Shares before September 2026, except in limited circumstances to preserve its status as a real estate investment trust for federal income tax purposes and except in certain circumstances upon the occurrence of a change of control of the Company. Beginning in September 2026, the Company, at its option, may redeem the Series A Preferred Shares, in whole or from time to time in part, by paying $25.00 per Depository Share, plus any accrued and unpaid dividends. Upon the occurrence of a change in control of the Company, if the Company does not otherwise redeem the Series A Preferred Shares, the holders have a right to convert their shares into common stock of

F-26

Agree Realty Corporation

Notes to Consolidated Financial Statements^{}[] December 31, 2022

the Company at the $25.00 per share liquidation value, plus any accrued and unpaid dividends. This conversion value is limited by a share cap if the Company’s stock price falls below a certain threshold.

### **ATM Programs**

The Company enters into ATM programs through which the Company, from time to time, sells shares of common stock and enters into forward sale agreements. The results of ATM programs entered into during 2020 and 2021 are shown in the following table. These ATM programs have been terminated and no future issuances will occur under them.

| Program Year | Size ($ million) | Shares Issued | Net Proceeds Received ($ million) |
| --- | --- | --- | --- |
| 2020 | $400.0 | 3,334,056 | $209.5 |
| 2021 | $500.0 | 5,453,975 | $379.1 |

In September 2022, the Company entered into a new $750 million ATM program (the “2022 ATM Program”) through which the Company, from time to time, may sell shares of common stock and/or enter into forward sale agreements. As of December 31, 2022, the Company entered into forward sale agreements to sell an aggregate of 4,350,232 shares of common stock under the 2022 ATM Program, for anticipated net proceeds of $300.9 million. The Company has settled 245,591 shares of these forward sale agreements as of December 31, 2022 for net proceeds of approximately $18.1 million, after deducting fees and expense. The Company is required to settle the remaining outstanding shares of common stock under the 2022 ATM Program by various dates between November and December 2023. After considering the 4,350,232 shares of common stock subject to forward sale agreements issued under the 2022 ATM Program, the Company had approximately $446.6 million of availability remaining under this program as of December 31, 2022.

### **Note 7 - Dividends and Distributions Payable**

The Company declared dividends per common share of $2.805, $2.604 and $2.405 per share during the years ended December 31, 2022, 2021, and 2020; the dividends have been reflected for federal income tax purposes as follows:

| For the Year Ended December 31, | 2022 | 2021 | 2020 |
| --- | --- | --- | --- |
| Ordinary Income | $2.518 | $2.398 | $1.928 |
| Return of Capital | 0.287 | 0.206 | 0.477 |
| Total | $2.805 | $2.604 | $2.405 |

On December 13, 2022, the Company declared a dividend per common share of $0.24 per share for the month ended December 31, 2022. The holders of Operating Partnership Common Units are entitled to an equal distribution per Operating Partnership Unit held. The monthly common dividend for December 2022 has been reflected as a reduction of stockholders’ equity and the distribution has been reflected as a reduction of the limited partners’ non-controlling interest. This dividend was paid on January 13, 2023.

The Company declared dividends of $1.0625 per Depository Share during the year ended December 31, 2022 and $0.30695 per Depository Share during the year ended December 31, 2021, covering the periods subsequent to the September 2021 preferred stock issuance date (see Note 6- *Common and Preferred Stock*). These dividends were reflected entirely as ordinary income for federal income tax purposes.

On December 13, 2022, the Company declared a dividend of $0.08854 per Depository Share for the month ended December 31, 2022. This monthly preferred dividend has been reflected as a reduction of stockholders’ equity and was paid on January 3, 2023.

F-27

Agree Realty Corporation

Notes to Consolidated Financial Statements^{}[] December 31, 2022

## Note 8 - Income Taxes

### Uncertain Tax Positions

The Company is subject to the provisions of Financial Accounting Standards Board ASC Topic 740-10 (“ASC 740-10”) and has analyzed its various federal and state filing positions. The Company believes that its income tax filing positions and deductions are documented and supported. Additionally, the Company believes that its accruals for tax liabilities are adequate. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to ASC 740-10. The Company’s federal income tax returns are open for examination by taxing authorities for all tax years after December 31, 2018. The Company has elected to record related interest and penalties, if any, as income tax expense on the Consolidated Statements of Operations and Comprehensive Income. We have no material interest or penalties relating to income taxes recognized for years ended December 31, 2022, 2021, and 2020.

### Income Tax Expense

During the years ended December 31, 2022, 2021, and 2020, the Company recognized net federal and state income tax expense of approximately $2.9 million, $2.4 million and $1.1 million, respectively. The income tax expense recorded in 2021 includes additional tax expense of approximately $0.5 million relating to the true-up of 2020 expense, recognized upon filing of the annual tax returns.

## Note 9 - Derivative Instruments and Hedging Activity

### Background

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risk, including interest rate, liquidity and credit risk primarily by managing the amount, sources and duration of its debt funding and, to a limited extent, the use of derivative instruments. For additional information regarding the leveling of the Company’s derivatives, refer to *Note 10 - Fair Value Measurements*.

The Company’s objective in using interest rate derivatives is to manage its exposure to interest rate movements and add stability to interest expense. To accomplish this objective, the Company uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable rate amounts from a counterparty in exchange for the Company making fixed rate payments over the life of the agreement without exchange of the underlying notional amount.

### 2021 Settlements - Hedging 2021 Debt Issuances

In August 2020, the Company entered into forward-starting interest rate swap agreements to hedge against changes in future cash flows resulting from changes in interest rates from the trade date through the forecasted issuance date of $100 million of long-term debt. The Company hedged its exposure to the variability in future cash flows for a forecasted issuance of long-term debt over a maximum period ending February 2022. In May 2021, the Company terminated the swap agreements upon the debt issuance, receiving $8.0 million upon termination. This settlement was included as a component of accumulated OCI, to be recognized as an adjustment to income over the term of the debt.

In December 2020, the Company entered into forward-starting interest rate swap agreements to hedge against changes in future cash flows resulting from changes in interest rates from the trade date through the forecasted issuance date of $100 million of long-term debt. The Company hedged its exposure to the variability in future cash flows for a forecasted issuance of long-term debt over a maximum period ending February 2022. In May 2021, the Company terminated the swap agreements upon the debt issuance, receiving $5.6 million upon termination. This settlement was included as a component of accumulated OCI, to be recognized as an adjustment to income over the term of the debt.

F-28

Agree Realty Corporation

Notes to Consolidated Financial Statements^{}[] December 31, 2022

In February 2021, the Company entered into forward-starting interest rate swap agreements to hedge against changes in future cash flows resulting from changes in interest rates from the trade date through the forecasted issuance date of $100 million of long-term debt. The Company hedged its exposure to the variability in future cash flows for a forecasted issuance of long-term debt over a maximum period ending February 2022. In May 2021, the Company terminated the swap agreements upon the debt issuance, receiving $3.1 million upon termination. This settlement was included as a component of accumulated OCI, to be recognized as an adjustment to income over the term of the debt.

### **2022 Settlements - Hedging 2022 Debt Issuances**

In May and July 2021, the Company entered into forward-starting interest rate swap agreements to hedge against changes in future cash flows resulting from changes in interest rates from the trade date through the forecasted issuance date of $300 million of long-term debt. The Company hedged its exposure to the variability in future cash flows for a forecasted issuance of long-term debt over a maximum period ending December 2022. In August 2022, the Company terminated the swap agreements upon the debt issuance, receiving $28.4 million upon termination. This settlement was included as a component of accumulated OCI, to be recognized as an adjustment to income over the term of the debt.

### **2021 Settlements - Extinguishment of Term Loans**

Prior to May 2021, the Company had entered interest rate swap agreements to hedge against future cash flows on variable-rate borrowings. These interest rate swap agreements were settled in May 2021. The Company incurred a charge of $14.6 million upon this repayment and settlement, including swap termination costs of $13.4 million and the write-off of previously unamortized debt issuance costs of $1.2 million. Details of the interest rate swaps and related terminations is as follows:

In July 2014, the Company entered into interest rate swap agreements to hedge against changes in future cash flows resulting from changes in interest rates on $65 million in variable-rate borrowings. Under the terms of the interest rate swap agreements, the Company received from the counterparty interest on the notional amount based on one month LIBOR and paid to the counterparty a fixed rate of 2.09%. These swaps effectively converted $65 million of variable-rate borrowings to fixed-rate borrowings from July 21, 2014 to July 21, 2021. In May 2021, the Company terminated the swap agreements upon the payoff of the related term loan, paying $0.3 million upon termination. This settlement was recognized as an expense during the year ended December 31, 2021.

In June 2016, the Company entered into an interest rate swap agreement to hedge against changes in future cash flows resulting from changes in interest rates on $40 million in variable-rate borrowings. Under the terms of the interest rate swap agreement, the Company received from the counterparty interest on the notional amount based on one month LIBOR and paid to the counterparty a fixed rate of 1.40%. This swap effectively converted $40 million of variable-rate borrowings to fixed-rate borrowings from August 1, 2016 to July 1, 2023. In May 2021, the Company terminated the swap agreements upon the payoff of the related term loan, paying $1.0 million upon termination. This settlement was recognized as an expense during the year ended December 31, 2021.

In December 2018, the Company entered into interest rate swap agreements to hedge against changes in future cash flows resulting from changes in interest rates on $100 million in variable-rate borrowings. Under the terms of the interest rate swap agreements, the Company received from the counterparty interest on the notional amount based on one month LIBOR and paid to the counterparty a fixed rate of 2.66%. These swaps effectively converted $100 million of variable-rate borrowings to fixed-rate borrowings from December 27, 2018 to January 15, 2026. In May 2021, the Company terminated the swap agreements upon the payoff of the related term loan, paying $9.2 million upon termination. This settlement was recognized as an expense during the year ended December 31, 2021.

In October 2019, the Company entered into interest rate swap agreements to hedge against changes in future cash flows resulting from changes in interest rates on $65 million in variable-rate borrowings. Under the terms of the interest rate swap agreements, the Company received from the counterparty interest on the notional amount based on one month LIBOR and paid to the counterparty a fixed rate of 1.4275%. This swap effectively converted $65 million of variable-rate

F-29

Agree Realty Corporation

Notes to Consolidated Financial Statements^{}[] December 31, 2022

borrowings to fixed-rate borrowings from July 12, 2021 to January 12, 2024. In May 2021, the Company terminated the swap agreements upon the payoff of the related term loan, paying $1.8 million upon termination. This settlement was recognized as an expense during the year ended December 31, 2021.

Also, in October 2019, the Company entered into an interest rate swap agreement to hedge against changes in future cash flows resulting from changes in interest rates on $35 million in variable-rate borrowings. Under the terms of the interest rate swap agreement, the Company receives from the counterparty interest on the notional amount based on one month LIBOR and pays to the counterparty a fixed rate of 1.4265%. This swap effectively converted $35 million of variable-rate borrowings to fixed-rate borrowings from September 29, 2020 to January 12, 2024. In May 2021, the Company terminated the swap agreements upon the payoff of the related term loan, paying $1.1 million upon termination. This settlement was recognized as an expense during the year ended December 31, 2021.

### Recognition

The Company recognizes all derivative instruments as either assets or liabilities at fair value on the balance sheet. The Company recognizes its derivatives within Other Assets, net and Accounts Payable, Accrued Expenses and Other Liabilities on the Consolidated Balance Sheets.

The Company recognizes all changes in fair value for hedging instruments designated and qualifying for cash flow hedge accounting treatment as a component of Other Comprehensive Income (OCI).

Accumulated OCI relates to (i) the change in fair value of forward-starting interest rate derivatives and (ii) realized gains or losses on settled derivative instruments. The realized gains or losses on settled derivative instruments are recognized as an adjustment to interest expense over the term of the hedged debt transaction. During the next twelve months, the Company estimates that an additional $2.5 million will be reclassified as an increase to interest expense.

During 2021, the Company accelerated the reclassification of amounts in accumulated OCI into expense given that the hedged forecasted transactions were no longer likely to occur. During 2021, the Company accelerated a loss of $13.4 million out of OCI into earnings due to missed forecasted transactions associated with terminated swap agreements in connection with the early payoff of the hedged term loans (see *2021 Settlements - Extinguishment of Term Loans* above).

The Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (*presented in thousands, except number of instruments*):

| Interest Rate Derivatives | Number of Instruments 1 |  | Notional 1 |  |
| --- | --- | --- | --- | --- |
|  | December 31, 2022 | December 31, 2021 | December 31, 2022 | December 31, 2021 |
| Interest rate swap | - | 3 | $ - | $300,000 |

(1) Number of Instruments and total Notional disclosed includes all interest rate swap agreements outstanding at the balance sheet date, including forward-starting swaps prior to their effective date.

The table below presents the estimated fair value of the Company's derivative financial instruments as well as their classification in the Consolidated Balance Sheets (*presented in thousands*).

|  | Asset Derivatives |  |
| --- | --- | --- |
|  | December 31, 2022 | December 31, 2021 |
|  | Fair Value | Fair Value |
| Derivatives designated as cash flow hedges: |  |  |
| Other Assets, net | $ - | $1,868 |

F-30

Agree Realty Corporation

Notes to Consolidated Financial Statements^{}[] December 31, 2022

|  | Liability Derivatives |  |
| --- | --- | --- |
|  | December 31, 2022 | December 31, 2021 |
|  | Fair Value | Fair Value |
| Derivatives designated as cash flow hedges: |  |  |
| Accounts Payable, Accrued Expenses, and Other Liabilities | $ - | $3,335 |

The table below presents the effect of the Company’s derivative financial instruments in the Consolidated Statements of Operations and Other Comprehensive Income for the years ended December 31, 2022, 2021, and 2020 (*presented in thousands*).

| Year Ended December 31, | Amount of Income/(Loss) Recognized in OCI on Derivative |  |  | Location of Income/(Loss) Reclassified from Accumulated OCI into Income | Amount of Income/(Loss) Reclassified from Accumulated OCI into Expense |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |  | 2022 | 2021 | 2020 |
| Interest rate swaps | $29,881 | $14,958 | $(34,558) | Interest expense | $(684) | $15,973 | $4,562 |
|  |  |  |  | Loss on extinguishment of debt and settlement of related hedges | $ - | $13,363 | $ - |

The Company does not use derivative instruments for trading or other speculative purposes and did not have any other derivative instruments or hedging activities as of December 31, 2022.

### **Credit Risk-Related Contingent Features**

The Company has agreements with its derivative counterparties that contain a provision where the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default on the indebtedness.

As of December 31, 2022, the Company had no derivatives outstanding.

Although the derivative contracts are subject to master netting arrangements, which serve as credit mitigants to both the Company and its counterparties under certain situations, the Company does not net its derivative fair values or any existing rights or obligations to cash collateral on the Consolidated Balance Sheets.

The table below presents a gross presentation of the effects of offsetting and a net presentation of the Company’s derivatives as of December 31, 2022 and December 31, 2021. The gross amounts of derivative assets or liabilities can be reconciled to the Tabular Disclosure of Fair Values of Derivative Instruments above, which also provides the location that derivative assets and liabilities are presented on the Consolidated Balance Sheets (*presented in thousands*):

F-31

Agree Realty Corporation

Notes to Consolidated Financial Statements^{}[] December 31, 2022

# Offsetting of Derivative Assets

As of December 31, 2022

|  | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Assets presented in the Statement of Financial Position | Gross Amounts Not Offset in the Statement of Financial Position |  |  |
| --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  | Financial Instruments | Cash Collateral Received | Net Amount |
| Derivatives | $ - | $ - | $ - | $ - | $ - | $ - |

# Offsetting of Derivative Liabilities

As of December 31, 2022

|  | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Liabilities presented in the Statement of Financial Position | Gross Amounts Not Offset in the Statement of Financial Position |  |  |
| --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  | Financial Instruments | Cash Collateral Posted | Net Amount |
| Derivatives | $ - | $ - | $ - | $ - | $ - | $ - |

# Offsetting of Derivative Assets

As of December 31, 2021

|  | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Assets presented in the Statement of Financial Position | Gross Amounts Not Offset in the Statement of Financial Position |  |  |
| --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  | Financial Instruments | Cash Collateral Received | Net Amount |
| Derivatives | $1,868 | $ - | $1,868 | $(1,679) | $ - | $189 |

# Offsetting of Derivative Liabilities

As of December 31, 2021

|  | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Liabilities presented in the Statement of Financial Position | Gross Amounts Not Offset in the Statement of Financial Position |  |  |
| --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  | Financial Instruments | Cash Collateral Posted | Net Amount |
| Derivatives | $3,335 | $ - | $3,335 | $(1,679) | $ - | $1,656 |

F-32

Agree Realty Corporation

Notes to Consolidated Financial Statements^{}[] December 31, 2022

## Note 10 - Fair Value Measurements

### Assets and Liabilities Measured at Fair Value

The Company accounts for fair values in accordance with ASC 820. ASC 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 applies to reported balances that are required or permitted to be measured at fair value under existing accounting pronouncements; accordingly, the standard does not require any new fair value measurements of reported balances.

ASC 820 emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity's own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy).

Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, which are typically based on an entity's own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls, is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

### Derivative Financial Instruments

The Company uses interest rate swap agreements to manage its interest rate risk. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves.

To comply with the provisions of ASC 820, the Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty's nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts and guarantees.

Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of December 31, 2021, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy.

F-33

Agree Realty Corporation

Notes to Consolidated Financial Statements^{}[] December 31, 2022

The table below presents the Company's assets and liabilities measured at fair value on a recurring basis as of December 31, 2022 and December 31, 2021 (*presented in thousands*):

|  | Total Fair Value | Level 2 |
| --- | --- | --- |
| December 31, 2022 |  |  |
| Derivative assets - interest rate swaps | $ - | $ - |
| Derivative liabilities - interest rate swaps | $ - | $ - |
| December 31, 2021 |  |  |
| Derivative assets - interest rate swaps | $1,868 | $1,868 |
| Derivative liabilities - interest rate swaps | $3,335 | $3,335 |

### **Other Financial Instruments**

The carrying values of cash and cash equivalents, cash held in escrow, receivables and accounts payable and accrued liabilities are reasonable estimates of their fair values because of the short maturity of these financial instruments.

The Company estimated the fair value of its debt based on its incremental borrowing rates for similar types of borrowing arrangements with the same remaining maturity and on the discounted estimated future cash payments to be made for other debt. The discount rate used to calculate the fair value of debt approximates current lending rates for loans and assumes the debt is outstanding through maturity. Since such amounts are estimates that are based on limited available market information for similar transactions, there can be no assurance that the disclosed value of any financial instrument could be realized by immediate settlement of the instrument.

The Company determined that the valuation of its Senior Unsecured Notes and Revolving Credit Facility are classified as Level 2 of the fair value hierarchy and its fixed rate mortgages are classified as Level 3 of the fair value hierarchy. The Senior Unsecured Notes had carrying values of $1.79 billion and $1.50 billion as of December 31, 2022 and 2021, respectively, and had fair values of approximately $1.54 billion and $1.57 billion, respectively. The Revolving Credit Facility's fair value is estimated to be equal to the carrying value of $100.0 million and $160.0 million as of December 31, 2022 and 2021, respectively. The Mortgage Notes Payable had carrying values of $48.0 million and $32.4 million as of December 31, 2022 and 2021, respectively, and had fair values of $45.4 million and $33.9 million as of those dates.

### **Note 11 - Equity Incentive Plan**

In May 2020, the Company's stockholders approved the Agree Realty Corporation 2020 Omnibus Incentive Plan (the '2020 Plan'), which replaced the Agree Realty Corporation 2014 Omnibus Equity Incentive Plan (the '2014 Plan'). The 2020 Plan provides for the award to employees, directors and consultants of the Company of options, restricted stock, restricted stock units, stock appreciation rights, performance awards (which may take the form of performance units or performance shares) and other awards to acquire up to an aggregate of 700,000 shares of the Company's common stock. All subsequent awards of equity or equity rights will be granted under the 2020 Plan, and no further awards will be made under the 2014 Plan. As of December 31, 2022, 333,048 shares of common stock were available for issuance under the 2020 Plan.

### **Restricted Stock - Employees**

Restricted shares have been granted to certain employees.

The holder of a restricted share award is generally entitled at all times on and after the date of issuance of the restricted shares to exercise the rights of a stockholder of the Company, including the right to vote the shares and the right to receive dividends on the shares. The restricted shares vest over a five-year period based on continued service to the Company.

The Company estimates the fair value of restricted share grants at the date of grant and amortizes those amounts into expense on a straight-line basis or amount vested, if greater, over the appropriate vesting period. During 2022, 2021, and

F-34

Agree Realty Corporation

Notes to Consolidated Financial Statements^{}[] December 31, 2022

2020 the Company recognized $3.9 million, $3.5 million and $3.2 million, respectively, of expense relating to restricted share grants.

As of December 31, 2022, there was $9.2 million of unrecognized compensation costs related to the outstanding restricted shares, which is expected to be recognized over a weighted average period of 3.3 years. The Company used 0% for the forfeiture rate for determining the fair value of restricted stock. The intrinsic value of restricted shares redeemed was $1.9 million, $1.8 million and $1.6 million for the years ended December 31, 2022, 2021, and 2020, respectively.

Restricted share activity is summarized as follows:

|  | Shares Outstanding (in thousands) | Weighted Average Grant Date Fair Value |
| --- | --- | --- |
| Unvested restricted stock at December 31, 2019 | 194 | $50.71 |
| Restricted stock granted | 52 | $78.43 |
| Restricted stock vested | (68) | $45.78 |
| Restricted stock forfeited | (3) | $63.80 |
| Unvested restricted stock at December 31, 2020 | 175 | $60.53 |
| Restricted stock granted | 87 | $65.23 |
| Restricted stock vested | (64) | $53.82 |
| Restricted stock forfeited | (23) | $63.88 |
| Unvested restricted stock at December 31, 2021 | 175 | $64.90 |
| Restricted stock granted | 81 | $63.10 |
| Restricted stock vested | (63) | $60.84 |
| Restricted stock forfeited | (10) | $65.12 |
| Unvested restricted stock at December 31, 2022 | 183 | $65.46 |

### **Performance Units and Shares**

Performance units were granted to certain executive officers during the years ended December 31, 2022, 2021, and 2020, while performance shares were granted prior to those years. Performance units or shares are subject to a three-year performance period, at the conclusion of which shares awarded are to be determined by the Company's total shareholder return ('TSR') compared to the constituents of the MSCI US REIT Index and a defined peer group. 50% of the award is based upon the TSR percentile rank versus the constituents in the MSCI US REIT Index for the three-year performance period; and 50% of the award is based upon TSR percentile rank versus a specified net lease peer group for the three-year performance period. Vesting of the performance units and shares following their issuance will occur ratably over a three-year period, with the initial vesting occurring immediately following the conclusion of the performance period such that all units and shares vest within five years of the original award date.

The grant date fair value of these awards is determined using a Monte Carlo simulation pricing model and compensation expense is amortized on an attribution method over a five-year period. Compensation expense related to performance units or shares is determined at the grant date and is not adjusted throughout the measurement or vesting periods.

F-35

Agree Realty Corporation

Notes to Consolidated Financial Statements^{}[] December 31, 2022

The Monte Carlo simulation pricing model for issued grants utilizes the following assumptions: (i) expected term (equal to the remaining performance measurement period at the grant date); (ii) volatility (based on historical volatility); and (iii) risk-free rate (interpolated based on 2-and 3- year rates). The Company used 0% for the forfeiture rate for determining the fair value of performance units and shares.

The following assumptions were used when determining the grant date fair value:

|  | 2022 | 2021 | 2020 |
| --- | --- | --- | --- |
| Expected term (years) | 2.9 | 2.9 | 2.9 |
| Volatility | 33.5% | 33.9% | 18.4% |
| Risk-free rate | 1.8% | 0.2% | 1.3% |

The Company recognized expense related to performance units and shares for which the three-year performance period has not been completed of $1.5 million, $1.2 million and $1.5 million for the years ended December 31, 2022, 2021, and 2020, respectively. As of December 31, 2022, there was $3.3 million of total unrecognized compensation costs related to performance units and shares for which the three-year performance period has not yet been completed, which is expected to be recognized over a weighted average period of 3.1 years.

The Company recognized expense related to performance units and shares for which the three-year performance period was completed of $0.4 million and $0.2 million for the years ending December 31, 2022 and 2021, respectively. As of December 31, 2022, there was $0.2 million of total unrecognized compensation costs related to performance units and shares for which the three-year performance period has been completed, which is expected to be recognized over a weighted average period of 0.9 years.

F-36

Agree Realty Corporation

Notes to Consolidated Financial Statements
December 31, 2022

Performance unit and share activity is summarized as follows:

|  | Target Number of Awards (in thousands) | Weighted Average Grant Date Fair Value |
| --- | --- | --- |
| Performance units and shares at December 31, 2019 - three-year performance period to be completed | 61 | $61.04 |
| Performance units granted | 26 | $90.17 |
| Performance units and shares at December 31, 2020 - three-year performance period to be completed | 87 | $69.61 |
| Performance units granted | 43 | $63.42 |
| Performance units and shares at December 31, 2021 - three-year performance period completed | (31) | $55.29 |
| Performance units and shares forfeited | (21) | $68.79 |
| Performance units and shares at December 31, 2021 - three-year performance period to be completed | 78 | $72.13 |
| Performance units granted | 34 | $68.59 |
| Performance units and shares at December 31, 2022- three-year performance period completed | (27) | $66.96 |
| Performance units and shares at December 31, 2022 - three-year performance period to be completed | 85 | $72.27 |
|  | Shares Outstanding (in thousands) | Weighted Average Grant Date Fair Value |
| Performance shares - three-year performance period completed but not yet vested at December 31, 2020 | - | $ - |
| Shares earned at completion of three-year performance period (1) | 47 | $55.29 |
| Shares vested | (16) | $55.29 |
| Shares forfeited | (4) | $55.29 |
| Performance shares - three-year performance period completed but not yet vested December 31, 2021 | 27 | $55.29 |
| Shares earned at completion of three-year performance period (2) | 28 | $66.96 |
| Shares vested | (23) | $59.91 |
| Performance shares - three-year performance period completed but not yet vested December 31, 2022 | 32 | $61.91 |

(1)Performance shares granted in 2018 for which the three-year performance period was completed in 2021 paid out at the 150% performance level

(2)Performance shares granted in 2019 for which the three-year performance period was completed in 2022 paid out at the 106% performance level

F-37

Agree Realty Corporation

Notes to Consolidated Financial Statements^{}[] December 31, 2022

# **Restricted Stock - Directors**

During the year ended December 31, 2022, 10,636 restricted shares were granted to independent members of the Company's board of directors at a weighted average grant date fair value of $62.62 per share.

The holder of a restricted share award is generally entitled at all times on and after the date of issuance of the restricted shares to exercise the rights of a stockholder of the Company, including the right to vote the shares and the right to receive dividends on the shares. The restricted shares granted to independent members of the board vested over the 2022 calendar year commensurate with the board members' annual services to the Company.

The Company estimates the fair value of board members' restricted share grants at the date of grant and amortizes those amounts into expense on a straight-line basis over the one-year vesting period. The Company recognized expense relating to restricted share grants to the board members of $0.7 million for the year ended December 31, 2022.

The Company used 0% for the forfeiture rate for determining the fair value of this restricted stock.

# **Note 12 - Commitments and Contingencies**

In the ordinary course of business, we are party to various legal actions which we believe are routine in nature and incidental to the operation of our business. We believe that the outcome of the proceedings will not have a material adverse effect upon our consolidated financial position or results of operations.

# **Note 13 - Subsequent Events**

In connection with the preparation of its financial statements, the Company has evaluated events that occurred subsequent to December 31, 2022 through the date on which these financial statements were issued to determine whether any of these events required adjustment to or disclosure in the financial statements.

There were no reportable subsequent events or transactions.

F-38

# Agree Realty Corporation  
Schedule III - Real Estate and Accumulated Depreciation

December 31, 2022

| COLUMN A | COLUMN B | COLUMN C |  | COLUMN D | COLUMN E |  |  | COLUMN F | COLUMN G | COLUMN H |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Description | Encumbrance | Initial Cost |  | Costs Capitalized Subsequent to Acquisition | Gross Amount at Which Carried at |  |  | Accumulated Depreciation | Date of Acquisition | Life on Which Depreciation in Latest Income Statement is Computed (in years) |
|  |  | Land | Building and Improvements |  | Land | Close of Period Building and Improvements | Total |  |  |  |
| Real Estate Held for Investment |  |  |  |  |  |  |  |  |  |  |
| Borman Center, MI | - | 550,000 | 562,404 | 1,087,596 | 550,000 | 1,650,000 | 2,200,000 | 1,650,000 | 1977 | 40 Years |
| Capital Plaza, KY | - | 7,379 | 2,240,607 | 8,812,549 | 7,379 | 11,053,156 | 11,060,535 | 1,965,182 | 1978 | 40 Years |
| Grayling Plaza, MI | - | 200,000 | 1,778,657 | 143,997 | 200,000 | 1,922,654 | 2,122,654 | 1,676,490 | 1984 | 40 Years |
| Omaha Store, NE | - | 150,000 | - | - | 150,000 | - | 150,000 | - | 1995 | - |
| Wichita Store, KS | - | 1,039,195 | 1,690,644 | 451,090 | 1,139,677 | 2,041,252 | 3,180,929 | 1,078,952 | 1995 | 40 Years |
| Monroeville, PA | - | 6,332,158 | 2,249,724 | (2,067,098) | 3,153,890 | 3,360,894 | 6,514,784 | 1,553,995 | 1996 | 40 Years |
| Boynton Beach, FL | - | 1,534,942 | 2,043,122 | 3,717,733 | 1,534,942 | 5,760,855 | 7,295,797 | 2,466,616 | 1996 | 40 Years |
| Chesterfield Township, MI | - | 1,350,590 | 1,757,830 | (46,164) | 1,350,590 | 1,711,666 | 3,062,256 | 1,048,977 | 1998 | 40 Years |
| Pontiac, MI | - | 1,144,190 | 1,808,955 | (90,189) | 1,144,190 | 1,718,766 | 2,862,956 | 1,034,771 | 1998 | 40 Years |
| Mt Pleasant Shopping Ctr, MI | - | 907,600 | 8,081,968 | 11,251,877 | 1,874,745 | 18,366,700 | 20,241,445 | 5,590,558 | 1998 | 40 Years |
| Rochester, MI | - | 2,438,740 | 2,188,050 | 23,358 | 2,438,740 | 2,211,408 | 4,650,148 | 1,287,020 | 1999 | 40 Years |
| Ypsilanti, MI | - | 2,050,000 | 2,222,097 | (3,494,709) | 777,388 | - | 777,388 | - | 1999 | - |
| Petoskey, MI | - | - | 2,332,473 | 2,020,905 | 2,015,626 | 2,337,752 | 4,353,378 | 1,322,416 | 2000 | 40 Years |
| Flint, MI | - | 1,477,680 | 2,241,293 | 99,920 | 1,477,680 | 2,341,213 | 3,818,893 | 1,230,805 | 2001 | 40 Years |
| New Baltimore, MI | - | 1,250,000 | 2,285,781 | 9,231 | 1,250,000 | 2,295,012 | 3,545,012 | 1,213,178 | 2001 | 40 Years |
| Flint, MI | 1,435,925 | 1,729,851 | 1,798,091 | 660 | 1,729,851 | 1,798,751 | 3,528,602 | 931,190 | 2002 | 40 Years |
| Indianapolis, IN | - | 180,000 | 1,117,617 | 108,551 | 180,000 | 1,226,168 | 1,406,168 | 620,946 | 2002 | 40 Years |
| Flint, MI | - | - | 471,272 | (201,809) | - | 269,463 | 269,463 | 233,486 | 2003 | 40 Years |
| Canton Twp, MI | - | 1,550,000 | 2,132,096 | 23,021 | 1,550,000 | 2,155,117 | 3,705,117 | 1,028,118 | 2003 | 40 Years |
| Flint, MI | 1,664,211 | 1,537,400 | 1,961,674 | - | 1,537,400 | 1,961,674 | 3,499,074 | 923,702 | 2004 | 40 Years |
| Allston, NY | - | 1,900,000 | 3,037,864 | - | 1,900,000 | 3,037,864 | 4,937,864 | 1,376,537 | 2004 | 40 Years |
| Flint, MI | 1,272,314 | 1,029,000 | 2,165,463 | (6,666) | 1,029,000 | 2,158,797 | 3,187,797 | 978,161 | 2004 | 40 Years |
| Boynton Beach, FL | - | 1,569,000 | 2,363,524 | 3,943,404 | 1,569,000 | 6,306,928 | 7,875,928 | 1,647,399 | 2004 | 40 Years |
| Roseville, MI | - | 1,771,000 | 2,327,052 | 395 | 1,771,000 | 2,327,447 | 4,098,447 | 996,348 | 2005 | 40 Years |
| Mt Pleasant, MI | - | 1,075,000 | 1,432,390 | 4,787 | 1,075,000 | 1,437,177 | 2,512,177 | 613,779 | 2005 | 40 Years |
| N Cape May, NJ | - | 1,075,000 | 1,430,092 | 495 | 1,075,000 | 1,430,587 | 2,505,587 | 610,975 | 2005 | 40 Years |
| Summit Twp, MI | - | 998,460 | 1,336,357 | 12,686 | 998,460 | 1,349,043 | 2,347,503 | 549,549 | 2006 | 40 Years |
| Barnesville, GA | - | 932,500 | 2,091,514 | 5,490 | 932,500 | 2,097,004 | 3,029,504 | 797,268 | 2007 | 40 Years |
| East Lansing, MI | - | 240,000 | 54,531 | (54,531) | 240,000 | - | 240,000 | - | 2007 | - |
| Macomb Township, MI | - | 424,222 | - | - | 424,222 | - | 424,222 | - | 2008 | - |
| Pegaton, MI | - | 1,365,000 | 2,802,036 | 5,615 | 1,365,000 | 2,807,651 | 4,172,651 | 970,901 | 2009 | 40 Years |
| Southfield, MI | 1,483,000 | 1,200,000 | 125,616 | 2,063 | 1,200,000 | 127,679 | 1,327,679 | 42,153 | 2009 | 40 Years |
| Atchison, KS | - | 943,750 | 3,021,672 | - | 823,170 | 3,142,252 | 3,965,422 | 980,445 | 2010 | 40 Years |
| Johnstown, OH | - | 485,000 | 2,799,502 | - | 485,000 | 2,799,502 | 3,284,502 | 874,846 | 2010 | 40 Years |
| Lake in the Hills, IL | - | 2,135,000 | 3,328,560 | - | 1,690,000 | 3,773,560 | 5,463,560 | 1,173,677 | 2010 | 40 Years |
| Concord, NC | - | 7,676,305 | - | - | 7,676,305 | - | 7,676,305 | - | 2010 | - |
| Antioch, IL | - | 1,087,884 | - | - | 1,087,884 | - | 1,087,884 | - | 2010 | - |
| Mansfield, CT | - | 700,000 | 1,902,191 | 508 | 700,000 | 1,902,699 | 2,602,699 | 576,754 | 2010 | 40 Years |
| Spring Grove, IL | 2,313,000 | 1,191,199 | - | 968 | 1,192,167 | - | 1,192,167 | - | 2010 | - |
| Tallahassee, FL | 1,628,000 | - | 1,482,462 | - | - | 1,482,462 | 1,482,462 | 446,280 | 2010 | 40 Years |
| Wilmington, NC | 2,186,000 | 1,500,000 | 1,348,591 | - | 1,500,000 | 1,348,591 | 2,848,591 | 398,959 | 2011 | 40 Years |
| Marietta, GA | 900,000 | 575,000 | 696,297 | 6,359 | 575,000 | 702,656 | 1,277,656 | 201,937 | 2011 | 40 Years |
| Baltimore, MD | 2,534,000 | 2,610,430 | - | (3,447) | 2,606,983 | - | 2,606,983 | - | 2011 | - |
| Dallas, TX | 1,844,000 | 701,320 | 778,905 | 1,042,730 | 701,320 | 1,821,635 | 2,522,955 | 509,062 | 2011 | 40 Years |
| Chandler, AZ | - | 332,868 | 793,898 | 360 | 332,868 | 794,258 | 1,127,126 | 223,422 | 2011 | 40 Years |
| New Lenox, IL | - | 1,422,488 | - | - | 1,422,488 | - | 1,422,488 | - | 2011 | - |
| Roseville, CA | 4,752,000 | 2,800,000 | 3,695,455 | (96,364) | 2,695,636 | 3,703,455 | 6,399,091 | 1,049,249 | 2011 | 40 Years |
| Fort Walton Beach, FL | 1,768,000 | 542,200 | 1,958,790 | 88,778 | 542,200 | 2,047,568 | 2,589,768 | 561,074 | 2011 | 40 Years |
| Leawood, KS | - | 989,622 | 3,003,541 | 16,197 | 989,622 | 3,019,738 | 4,009,360 | 830,425 | 2011 | 40 Years |
| Salt Lake City, UT | - | - | 6,810,104 | (44,416) | - | 6,765,688 | 6,765,688 | 1,896,036 | 2011 | 40 Years |
| Macomb Township, MI | 1,793,000 | 1,605,134 | - | - | 1,605,134 | - | 1,605,134 | - | 2012 | - |
| Madison, AL | 1,552,000 | 675,000 | 1,317,927 | - | 675,000 | 1,317,927 | 1,992,927 | 362,429 | 2012 | 40 Years |
| Walker, MI | 887,000 | 219,200 | 1,024,738 | - | 219,200 | 1,024,738 | 1,243,938 | 275,398 | 2012 | 40 Years |
| Portland, OR | - | 7,969,403 | - | 161 | 7,969,564 | - | 7,969,564 | - | 2012 | - |
| Cochran, GA | - | 365,714 | 2,053,726 | - | 365,714 | 2,053,726 | 2,419,440 | 539,104 | 2012 | 40 Years |
| Baton Rouge, LA | - | - | 1,188,322 | - | - | 1,188,322 | 1,188,322 | 314,410 | 2012 | 40 Years |
| Southfield, MI | - | 1,178,215 | - | - | 1,178,215 | - | 1,178,215 | - | 2012 | - |
| Clifton Heights, PA | - | 2,543,941 | 3,038,561 | (3,105) | 2,543,941 | 3,035,456 | 5,579,397 | 793,648 | 2012 | 40 Years |
| Newark, DE | - | 2,117,547 | 4,777,516 | (4,881) | 2,117,547 | 4,772,635 | 6,890,182 | 1,247,908 | 2012 | 40 Years |
| Vineland, NJ | - | 4,102,710 | 1,501,854 | 43,976 | 4,125,289 | 1,523,251 | 5,648,540 | 395,015 | 2012 | 40 Years |
| Fort Mill, SC | - | 750,000 | 1,187,380 | - | 750,000 | 1,187,380 | 1,937,380 | 309,213 | 2012 | 40 Years |
| Spartanburg, SC | - | 250,000 | 765,714 | 4,387 | 250,000 | 770,101 | 1,020,101 | 201,022 | 2012 | 40 Years |
| Springfield, IL | - | 302,520 | 653,654 | 49,741 | 302,520 | 703,395 | 1,005,915 | 179,667 | 2012 | 40 Years |
| Jacksonville, NC | - | 676,930 | 1,482,748 | - | 676,930 | 1,482,748 | 2,159,678 | 373,667 | 2012 | 40 Years |
| Morrow, GA | - | 525,000 | 1,383,489 | (99,849) | 525,000 | 1,283,640 | 1,808,640 | 329,558 | 2012 | 40 Years |
| Charlotte, NC | - | 1,822,900 | 3,531,275 | (570,844) | 1,822,900 | 2,960,431 | 4,783,331 | 754,844 | 2012 | 40 Years |
| Lyons, GA | - | 121,627 | 2,155,635 | (103,392) | 121,627 | 2,052,243 | 2,173,870 | 534,657 | 2012 | 40 Years |
| Fuquay-Varina, NC | - | 2,042,225 | 1,763,768 | (255,778) | 2,042,225 | 1,507,990 | 3,550,215 | 380,672 | 2012 | 40 Years |
| Minneapolis, MN | - | 1,088,015 | 345,958 | 71,142 | 826,635 | 678,480 | 1,505,115 | 33,924 | 2012 | 40 Years |
| Lake Zurich, IL | - | 780,974 | 7,909,277 | 46,509 | 780,974 | 7,955,786 | 8,736,760 | 1,996,574 | 2012 | 40 Years |
| Harlingen, TX | - | 430,000 | 1,614,378 | 12,854 | 430,000 | 1,627,232 | 2,057,232 | 406,806 | 2012 | 40 Years |
| Pensacola, FL | - | 650,000 | 1,165,415 | 23,957 | 650,000 | 1,189,372 | 1,839,372 | 295,468 | 2012 | 40 Years |

F-39

# Agree Realty Corporation  
Schedule III - Real Estate and Accumulated Depreciation

December 31, 2022

| COLUMN A | COLUMN B | COLUMN C |  | COLUMN D | COLUMN E |  |  | COLUMN F | COLUMN G | COLUMN H |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Description | Encumbrance | Initial Cost |  | Costs Capitalized Subsequent to Acquisition | Gross Amount at Which Carried at |  |  | Accumulated Depreciation | Date of Acquisition | Life on Which Depreciation in Latest Income Statement is Computed (in years) |
|  |  | Land | Building and Improvements |  | Land | Close of Period Building and Improvements | Total |  |  |  |
| Venice, FL | - | 1,300,196 | - | 4,892 | 1,305,088 | - | 1,305,088 | - | 2012 | - |
| St. Joseph, MO | - | 377,620 | 7,639,521 | - | 377,620 | 7,639,521 | 8,017,141 | 1,893,964 | 2013 | 40 Years |
| Statham, GA | - | 191,919 | 3,851,073 | - | 191,919 | 3,851,073 | 4,042,992 | 954,743 | 2013 | 40 Years |
| North Las Vegas, NV | - | 214,552 | 717,435 | 28,999 | 214,552 | 746,434 | 960,986 | 183,399 | 2013 | 40 Years |
| Memphis, TN | - | 322,520 | 748,890 | - | 322,520 | 748,890 | 1,071,410 | 184,106 | 2013 | 40 Years |
| Rancho Cordova, CA | - | 1,339,612 | - | (265,000) | 1,074,612 | - | 1,074,612 | - | 2013 | - |
| Kiwistown, FL | - | 1,453,500 | 971,683 | 196 | 1,453,696 | 971,683 | 2,425,379 | 236,849 | 2013 | 40 Years |
| Pinellas Park, FL | - | 2,625,000 | 874,542 | 4,163 | 2,625,000 | 878,705 | 3,503,705 | 210,452 | 2013 | 40 Years |
| Manchester, CT | - | 397,800 | 325,705 | - | 397,800 | 325,705 | 723,505 | 78,713 | 2013 | 40 Years |
| Rapid City, SD | - | 1,017,800 | 2,348,032 | 1,379 | 1,017,800 | 2,349,411 | 3,367,211 | 565,293 | 2013 | 40 Years |
| Chicago, IL | - | 272,222 | 649,063 | 61,309 | 272,222 | 710,372 | 982,594 | 161,953 | 2013 | 40 Years |
| Brooklyn, OH | - | 3,643,700 | 15,079,714 | 953,195 | 3,643,700 | 16,032,909 | 19,676,609 | 3,739,801 | 2013 | 40 Years |
| Madisonville, TX | - | 96,680 | 1,087,642 | 18,200 | 96,680 | 1,105,842 | 1,202,522 | 262,749 | 2013 | 40 Years |
| Forest, MS | - | - | 1,298,176 | 99,848 | - | 1,398,024 | 1,398,024 | 322,502 | 2013 | 40 Years |
| Sun Valley, NV | - | 308,495 | 1,373,336 | (51,008) | 253,495 | 1,377,328 | 1,630,823 | 321,306 | 2013 | 40 Years |
| Rochester, NY | - | 2,500,000 | 7,398,639 | 2,017 | 2,500,000 | 7,400,656 | 9,900,656 | 1,719,003 | 2013 | 40 Years |
| Allentown, PA | - | 2,525,051 | 7,896,613 | 672,368 | 2,525,051 | 8,568,981 | 11,094,032 | 1,967,811 | 2013 | 40 Years |
| Casualberry, FL | - | 1,804,000 | 793,101 | (2,906) | 1,804,000 | 790,195 | 2,594,195 | 186,455 | 2013 | 40 Years |
| Berwyn, IL | - | 186,791 | 933,959 | 62,585 | 186,791 | 996,544 | 1,183,335 | 219,952 | 2013 | 40 Years |
| Grand Forks, ND | - | 1,502,609 | 2,301,337 | 1,801,028 | 1,502,609 | 4,102,365 | 5,604,974 | 932,621 | 2013 | 40 Years |
| Ann Arbor, MI | - | 3,000,000 | 4,595,757 | 277,040 | 3,000,000 | 4,872,797 | 7,872,797 | 1,105,907 | 2013 | 40 Years |
| Joplin, MO | - | 1,208,225 | 1,160,843 | - | 1,208,225 | 1,160,843 | 2,369,068 | 266,025 | 2013 | 40 Years |
| Red Bay, AL | - | 38,981 | 2,528,437 | 3,856 | 38,981 | 2,532,293 | 2,571,274 | 516,996 | 2014 | 40 Years |
| Birmingham, AL | - | 230,106 | 231,313 | (297) | 230,106 | 231,016 | 461,122 | 46,685 | 2014 | 40 Years |
| Birmingham, AL | - | 245,234 | 251,339 | (324) | 245,234 | 251,015 | 496,249 | 50,727 | 2014 | 40 Years |
| Birmingham, AL | - | 98,271 | 179,824 | - | 98,271 | 179,824 | 278,095 | 36,340 | 2014 | 40 Years |
| Birmingham, AL | - | 235,641 | 127,477 | (313) | 235,641 | 127,164 | 362,805 | 25,699 | 2014 | 40 Years |
| Montgomery, AL | - | 325,389 | 217,850 | - | 325,389 | 217,850 | 543,239 | 44,024 | 2014 | 40 Years |
| Littleton, CO | 4,622,391 | 819,000 | 8,756,266 | (3,879,591) | 819,000 | 4,876,675 | 5,695,675 | 1,589,420 | 2014 | 40 Years |
| St Petersburg, FL | - | 1,225,000 | 1,025,247 | 6,592 | 1,225,000 | 1,031,839 | 2,256,839 | 225,437 | 2014 | 40 Years |
| St Augustine, FL | - | 200,000 | 1,523,230 | - | 200,000 | 1,523,230 | 1,723,230 | 314,166 | 2014 | 40 Years |
| East Palatka, FL | - | 730,000 | 575,236 | 6,911 | 730,000 | 582,147 | 1,312,147 | 120,026 | 2014 | 40 Years |
| Pensacola, FL | - | 136,365 | 398,773 | - | 136,365 | 398,773 | 535,138 | 80,585 | 2014 | 40 Years |
| Fort Oglethorpe, GA | - | 1,842,240 | 2,844,126 | 20,442 | 1,842,240 | 2,864,568 | 4,706,808 | 639,394 | 2014 | 40 Years |
| New Lenox, IL | - | 2,010,000 | 6,206,252 | 107,873 | 2,010,000 | 6,214,125 | 8,324,125 | 1,292,365 | 2014 | 40 Years |
| Rockford, IL | - | 303,395 | 2,436,873 | (15,000) | 303,395 | 2,421,873 | 2,725,268 | 501,011 | 2014 | 40 Years |
| Terre Haute, LA | - | 103,147 | 2,477,263 | 32,376 | 103,147 | 2,509,639 | 2,612,786 | 500,650 | 2014 | 40 Years |
| Junction City, KS | - | 78,271 | 2,504,294 | (30,565) | 78,271 | 2,473,729 | 2,552,000 | 500,787 | 2014 | 40 Years |
| Baton Rouge, LA | - | 226,919 | 347,691 | - | 226,919 | 347,691 | 574,610 | 70,262 | 2014 | 40 Years |
| Lincoln Park, MI | - | 543,303 | 1,408,544 | 209,848 | 543,303 | 1,618,392 | 2,161,695 | 332,393 | 2014 | 40 Years |
| Novi, MI | - | 1,803,857 | 1,488,505 | 22,490 | 1,803,857 | 1,510,995 | 3,314,852 | 302,164 | 2014 | 40 Years |
| Bloomfield Hills, MI | - | 1,340,000 | 2,003,406 | 391,480 | 1,341,900 | 2,392,986 | 3,734,886 | 486,363 | 2014 | 40 Years |
| Jackson, MS | - | 256,789 | 172,184 | - | 256,789 | 172,184 | 428,973 | 34,796 | 2014 | 40 Years |
| Irvington, NJ | - | 315,000 | 1,313,025 | - | 315,000 | 1,313,025 | 1,628,025 | 287,223 | 2014 | 40 Years |
| Toledo, OH | - | 500,000 | 1,372,363 | (12) | 500,000 | 1,372,351 | 1,872,351 | 300,201 | 2014 | 40 Years |
| Toledo, OH | - | 213,750 | 754,675 | - | 213,750 | 754,675 | 968,425 | 158,796 | 2014 | 40 Years |
| Toledo, OH | - | 168,750 | 785,000 | 16,477 | 168,750 | 801,477 | 970,227 | 168,473 | 2014 | 40 Years |
| Mansfield, OH | - | 306,000 | 725,600 | - | 306,000 | 725,600 | 1,031,600 | 152,678 | 2014 | 40 Years |
| Orrville, OH | - | 344,250 | 716,600 | - | 344,250 | 716,600 | 1,060,850 | 150,784 | 2014 | 40 Years |
| Calcutta, OH | - | 208,050 | 758,750 | 1,462 | 208,050 | 760,212 | 968,262 | 159,889 | 2014 | 40 Years |
| Columbus, OH | - | - | 1,136,250 | 1,593,792 | 1,590,997 | 1,139,045 | 2,730,042 | 237,069 | 2014 | 40 Years |
| Tulsa, OK | - | 459,148 | 640,550 | (13,336) | 459,148 | 627,214 | 1,086,362 | 139,032 | 2014 | 40 Years |
| Ligonier, PA | - | 330,000 | 5,021,849 | (9,500) | 330,000 | 5,012,349 | 5,342,349 | 1,055,171 | 2014 | 40 Years |
| Limerick, PA | - | 369,000 | - | - | 369,000 | - | 369,000 | - | 2014 | - |
| Harrisburg, PA | - | 124,757 | 1,446,773 | 11,175 | 124,757 | 1,457,948 | 1,582,705 | 291,507 | 2014 | 40 Years |
| Anderson, SC | - | 781,200 | 4,441,535 | 261,624 | 775,732 | 4,708,627 | 5,484,359 | 1,062,022 | 2014 | 40 Years |
| Easley, SC | - | 332,275 | 268,612 | - | 332,275 | 268,612 | 600,887 | 54,283 | 2014 | 40 Years |
| Spartanburg, SC | - | 141,307 | 446,706 | - | 141,307 | 446,706 | 588,013 | 90,272 | 2014 | 40 Years |
| Spartanburg, SC | - | 94,770 | 261,640 | - | 94,770 | 261,640 | 356,410 | 52,873 | 2014 | 40 Years |
| Columbia, SC | - | 303,932 | 1,221,964 | (13,830) | 303,932 | 1,208,134 | 1,512,066 | 244,743 | 2014 | 40 Years |
| Alcoa, TN | - | 329,074 | 270,719 | - | 329,074 | 270,719 | 599,793 | 54,708 | 2014 | 40 Years |
| Knoxville, TN | - | 214,077 | 286,037 | - | 214,077 | 286,037 | 500,114 | 57,804 | 2014 | 40 Years |
| Red Bank, TN | - | 229,100 | 302,146 | - | 229,100 | 302,146 | 531,246 | 61,058 | 2014 | 40 Years |
| New Tazewell, TN | - | 91,006 | 328,561 | 29,311 | 91,006 | 357,872 | 448,878 | 66,913 | 2014 | 40 Years |
| Maryville, TN | - | 94,682 | 1,529,621 | 85,861 | 94,682 | 1,615,482 | 1,710,164 | 316,031 | 2014 | 40 Years |
| Morrison, TN | - | 46,404 | 801,506 | 4,990 | 46,404 | 806,496 | 852,900 | 161,291 | 2014 | 40 Years |
| Clinton, TN | - | 69,625 | 1,177,927 | 11,564 | 69,625 | 1,189,491 | 1,259,116 | 237,887 | 2014 | 40 Years |
| Knoxville, TN | - | 160,057 | 2,265,025 | 226,291 | 160,057 | 2,491,316 | 2,651,373 | 498,241 | 2014 | 40 Years |
| Sweetwater, TN | - | 79,100 | 1,009,290 | 6,740 | 79,100 | 1,016,030 | 1,095,130 | 203,194 | 2014 | 40 Years |
| McKinney, TX | - | 2,671,020 | 6,785,815 | 100,331 | 2,671,020 | 6,886,146 | 9,557,166 | 1,472,027 | 2014 | 40 Years |
| Forest, VA | - | 282,600 | 956,027 | - | 282,600 | 956,027 | 1,238,627 | 203,154 | 2014 | 40 Years |
| Colonial Heights, VA | - | 547,692 | 1,059,557 | (5,963) | 547,692 | 1,053,594 | 1,601,286 | 212,917 | 2014 | 40 Years |
| Glen Allen, VA | - | 590,101 | 1,129,495 | (19,367) | 577,601 | 1,122,628 | 1,700,229 | 226,868 | 2014 | 40 Years |

F-40

# Agree Realty Corporation  
Schedule III - Real Estate and Accumulated Depreciation

December 31, 2022

| COLUMN A | COLUMN B | COLUMN C |  | COLUMN D | COLUMN E |  |  | COLUMN F | COLUMN G | COLUMN H |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Description | Encumbrance | Initial Cost |  | Costs Capitalized Subsequent to Acquisition | Gross Amount at Which Carried at |  |  | Accumulated Depreciation | Date of Acquisition | Life on Which Depreciation in Latest Income Statement is Computed (in years) |
|  |  | Land | Building and Improvements |  | Land | Close of Period Building and Improvements | Total |  |  |  |
| Burlington, WA | - | 610,000 | 3,647,279 | (4,602) | 610,000 | 3,642,677 | 4,252,677 | 737,513 | 2014 | 40 Years |
| Wausau, WI | - | 909,092 | 1,405,899 | 86,764 | 909,092 | 1,492,663 | 2,401,755 | 313,423 | 2014 | 40 Years |
| Foley, AL | - | 305,332 | 506,203 | 9,380 | 305,332 | 515,583 | 820,915 | 103,223 | 2015 | 40 Years |
| Sullipore, AL | - | 58,803 | 1,085,906 | (432,709) | 58,803 | 653,197 | 712,000 | 174,845 | 2015 | 40 Years |
| Eutaw, AL | - | 103,746 | 1,212,006 | (377,526) | 103,746 | 834,480 | 938,226 | 204,741 | 2015 | 40 Years |
| Tallassee, AL | - | 154,437 | 850,448 | 61,461 | 154,437 | 911,909 | 1,066,346 | 166,912 | 2015 | 40 Years |
| Orange Park, AL | - | 649,652 | 1,775,000 | 9,664 | 649,652 | 1,784,664 | 2,434,316 | 326,222 | 2015 | 40 Years |
| Pace, FL | - | 37,860 | 524,400 | 6,970 | 37,860 | 531,370 | 569,230 | 105,081 | 2015 | 40 Years |
| Pensacola, FL | - | 309,607 | 775,084 | (25) | 309,607 | 775,059 | 1,084,666 | 153,208 | 2015 | 40 Years |
| Freeport, FL | - | 312,615 | 1,277,386 | - | 312,615 | 1,277,386 | 1,590,001 | 239,510 | 2015 | 40 Years |
| Glenwood, GA | - | 29,489 | 1,027,370 | (816,545) | 14,395 | 225,920 | 240,314 | 11,463 | 2015 | 40 Years |
| Albany, GA | - | 47,955 | 641,123 | - | 47,955 | 641,123 | 689,078 | 124,137 | 2015 | 40 Years |
| Belvidere, IL | - | 184,136 | 644,492 | - | 184,136 | 644,492 | 828,628 | 124,757 | 2015 | 40 Years |
| Peru, IL | - | 380,254 | 2,125,498 | - | 380,254 | 2,125,498 | 2,505,752 | 385,247 | 2015 | 40 Years |
| Davenport, IA | - | 776,366 | 6,623,542 | 84,487 | 776,366 | 6,708,029 | 7,484,395 | 1,237,818 | 2015 | 40 Years |
| Buffalo Center, IA | - | 159,353 | 700,460 | - | 159,353 | 700,460 | 859,813 | 129,877 | 2015 | 40 Years |
| Sheffield, IA | - | 131,794 | 729,543 | - | 131,794 | 729,543 | 861,337 | 135,269 | 2015 | 40 Years |
| Lenexa, KS | - | 303,175 | 2,186,864 | - | 303,175 | 2,186,864 | 2,490,039 | 382,701 | 2015 | 40 Years |
| Tompkinsville, KY | - | 70,252 | 1,132,033 | (164,520) | 70,252 | 967,513 | 1,037,765 | 215,451 | 2015 | 40 Years |
| Hazard, KY | - | 8,392,841 | 13,731,648 | (16,857) | 8,375,591 | 13,732,041 | 22,107,632 | 2,403,103 | 2015 | 40 Years |
| Portland, MA | - | - | 3,831,860 | 3,172 | - | 3,835,032 | 3,835,032 | 719,029 | 2015 | 40 Years |
| Flint, MI | - | 120,078 | 2,561,015 | 20,490 | 120,078 | 2,581,505 | 2,701,583 | 451,763 | 2015 | 40 Years |
| Hutchinson, MN | - | 67,914 | 720,799 | - | 67,914 | 720,799 | 788,713 | 133,648 | 2015 | 40 Years |
| Lowry City, MO | - | 103,202 | 614,065 | - | 103,202 | 614,065 | 717,267 | 115,137 | 2015 | 40 Years |
| Branson, MN | - | 564,066 | 940,585 | 175 | 564,066 | 940,760 | 1,504,826 | 168,552 | 2015 | 40 Years |
| Branson, MO | - | 721,135 | 717,081 | 940 | 721,135 | 718,021 | 1,439,156 | 128,638 | 2015 | 40 Years |
| Enfield, NH | - | 93,628 | 1,295,320 | 60,029 | 93,628 | 1,355,349 | 1,448,977 | 263,639 | 2015 | 40 Years |
| Marietta, OH | - | 319,157 | 1,225,026 | - | 319,157 | 1,225,026 | 1,544,183 | 237,291 | 2015 | 40 Years |
| Franklin, OH | - | 264,153 | 1,191,777 | - | 264,153 | 1,191,777 | 1,455,930 | 225,941 | 2015 | 40 Years |
| Elyria, OH | - | 82,023 | 910,404 | - | 82,023 | 910,404 | 992,427 | 170,701 | 2015 | 40 Years |
| Elyria, OH | - | 126,641 | 695,072 | - | 126,641 | 695,072 | 821,713 | 130,326 | 2015 | 40 Years |
| Bedford Heights, OH | - | 226,920 | 959,528 | 21,901 | 226,920 | 981,429 | 1,208,349 | 179,658 | 2015 | 40 Years |
| Newburgh Heights, OH | - | 224,040 | 959,099 | - | 224,040 | 959,099 | 1,183,139 | 177,833 | 2015 | 40 Years |
| Warrenville Heights, OH | - | 186,209 | 920,496 | 4,900 | 186,209 | 925,396 | 1,111,605 | 173,656 | 2015 | 40 Years |
| Heath, OH | - | 325,381 | 757,994 | 135 | 325,381 | 758,129 | 1,083,510 | 155,831 | 2015 | 40 Years |
| Lima, OH | - | 335,386 | 592,154 | 2,833 | 335,386 | 594,987 | 930,373 | 104,241 | 2015 | 40 Years |
| Elk City, OK | - | 45,212 | 1,242,220 | - | 45,212 | 1,242,220 | 1,287,432 | 255,504 | 2015 | 40 Years |
| Salem, OR | - | 1,450,000 | 2,951,167 | 1,346,640 | 1,450,000 | 4,297,807 | 5,747,807 | 752,124 | 2015 | 40 Years |
| Westfield, PA | - | 47,346 | 1,117,723 | 10,973 | 47,346 | 1,128,696 | 1,176,042 | 222,944 | 2015 | 40 Years |
| Altoona, PA | - | 555,903 | 9,489,791 | 1,017 | 555,903 | 9,490,808 | 10,046,711 | 720,194 | 2015 | 40 Years |
| Grindstone, PA | - | 288,246 | 500,379 | 10,151 | 288,246 | 510,530 | 798,776 | 89,717 | 2015 | 40 Years |
| Liberty, SC | - | 27,929 | 1,222,856 | 90 | 27,929 | 1,222,946 | 1,250,875 | 236,858 | 2015 | 40 Years |
| Blacksburg, SC | - | 27,547 | 1,468,101 | - | 27,547 | 1,468,101 | 1,495,648 | 281,386 | 2015 | 40 Years |
| Easley, SC | - | 51,325 | 1,187,506 | - | 51,325 | 1,187,506 | 1,238,831 | 225,131 | 2015 | 40 Years |
| Fountain Inn, SC | - | 107,633 | 1,076,633 | - | 107,633 | 1,076,633 | 1,184,266 | 204,112 | 2015 | 40 Years |
| Walterboro, SC | - | 21,414 | 1,156,820 | - | 21,414 | 1,156,820 | 1,178,234 | 219,313 | 2015 | 40 Years |
| Jackson, TN | - | 277,000 | 495,103 | 80,423 | 277,000 | 575,526 | 852,526 | 93,554 | 2015 | 40 Years |
| Brenham, TX | - | 355,486 | 17,280,895 | 581 | 355,486 | 17,281,476 | 17,636,962 | 3,312,244 | 2015 | 40 Years |
| Corpus Christi, TX | - | 316,916 | 2,140,056 | - | 316,916 | 2,140,056 | 2,456,972 | 392,344 | 2015 | 40 Years |
| Harlingen, TX | - | 126,102 | 869,779 | 12,681 | 126,102 | 882,460 | 1,008,562 | 160,094 | 2015 | 40 Years |
| Midland, TX | - | 194,174 | 5,005,720 | 2,000 | 194,174 | 5,007,720 | 5,201,894 | 907,624 | 2015 | 40 Years |
| Rockwall, TX | - | 578,225 | 1,768,930 | 210 | 578,225 | 1,769,140 | 2,347,365 | 309,595 | 2015 | 40 Years |
| Princeton, WV | - | 111,653 | 1,029,090 | - | 111,653 | 1,029,090 | 1,140,743 | 199,324 | 2015 | 40 Years |
| Martinsburg, WV | - | 620,892 | 943,163 | - | 620,892 | 943,163 | 1,564,055 | 165,054 | 2015 | 40 Years |
| Grand Chute, WI | - | 2,766,417 | 7,084,942 | 803,235 | 2,766,417 | 7,888,177 | 10,654,594 | 1,408,704 | 2015 | 40 Years |
| New Richmond, WI | - | 71,969 | 648,850 | - | 71,969 | 648,850 | 720,819 | 121,659 | 2015 | 40 Years |
| Baraboo, WI | - | 142,563 | 653,176 | - | 142,563 | 653,176 | 795,739 | 121,110 | 2015 | 40 Years |
| Decatur, AL | - | 337,738 | 510,706 | - | 337,738 | 510,706 | 848,444 | 78,734 | 2016 | 40 Years |
| Greenville, AL | - | 203,722 | 905,780 | 9,911 | 203,722 | 915,691 | 1,119,413 | 137,311 | 2016 | 40 Years |
| Bullhead City, AZ | - | 177,500 | 1,364,406 | - | 177,500 | 1,364,406 | 1,541,906 | 230,231 | 2016 | 40 Years |
| Page, AZ | - | 256,982 | 1,299,283 | - | 256,982 | 1,299,283 | 1,556,265 | 219,254 | 2016 | 40 Years |
| Salford, AZ | - | 349,269 | 1,196,307 | 676 | 349,269 | 1,196,983 | 1,546,252 | 191,809 | 2016 | 40 Years |
| Tucson, AZ | - | 3,208,580 | 4,410,679 | (8,268) | 3,208,580 | 4,402,411 | 7,610,991 | 716,580 | 2016 | 40 Years |
| Bentonville, AR | - | 610,926 | 897,562 | 170 | 610,926 | 897,732 | 1,508,658 | 151,517 | 2016 | 40 Years |
| Sunnyvale, CA | - | 7,351,903 | 4,638,432 | 194 | 7,351,903 | 4,638,626 | 11,990,529 | 763,295 | 2016 | 40 Years |
| Whittier, CA | - | 4,237,918 | 7,343,869 | - | 4,237,918 | 7,343,869 | 11,581,787 | 1,208,678 | 2016 | 40 Years |
| Aurora, CO | - | 847,349 | 834,301 | 7,770 | 847,349 | 842,071 | 1,689,420 | 126,181 | 2016 | 40 Years |
| Aurora, CO | - | 1,132,676 | 5,716,367 | 287,321 | 1,132,676 | 6,003,688 | 7,136,364 | 889,859 | 2016 | 40 Years |
| Evergreen, CO | - | 1,998,860 | 3,827,245 | - | 1,998,860 | 3,827,245 | 5,826,105 | 629,901 | 2016 | 40 Years |
| Lakeland, FL | - | 61,000 | 1,227,037 | - | 61,000 | 1,227,037 | 1,288,037 | 189,168 | 2016 | 40 Years |
| Mt Dora, FL | - | 1,678,671 | 3,691,615 | 639,525 | 1,678,671 | 4,331,140 | 6,009,811 | 671,486 | 2016 | 40 Years |
| North Miami Beach, FL | - | 1,622,742 | 512,717 | 11,240 | 1,622,742 | 523,957 | 2,146,699 | 78,516 | 2016 | 40 Years |
| Orlando, FL | - | 903,411 | 1,627,159 | (24,843) | 903,411 | 1,602,316 | 2,505,727 | 253,619 | 2016 | 40 Years |

F-41

# Agree Realty Corporation  
Schedule III - Real Estate and Accumulated Depreciation

December 31, 2022

| COLUMN A | COLUMN B | COLUMN C |  | COLUMN D | COLUMN E |  |  | COLUMN F | COLUMN G | COLUMN H |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Description | Encumbrance | Initial Cost |  | Costs Capitalized Subsequent to Acquisition | Gross Amount at Which Carried at |  |  | Accumulated Depreciation | Date of Acquisition | Life on Which Depreciation in Latest Income Statement is Computed (in years) |
|  |  | Land | Building and Improvements |  | Land | Close of Period Building and Improvements | Total |  |  |  |
| Port Orange, FL | - | 1,493,863 | 3,114,697 | 619,495 | 1,493,863 | 3,734,192 | 5,228,055 | 543,821 | 2016 | 40 Years |
| Royal Palm Beach, FL | - | 2,052,463 | 956,768 | 20,576 | 2,052,463 | 977,344 | 3,029,807 | 157,555 | 2016 | 40 Years |
| Sarasota, FL | - | 1,769,175 | 3,587,992 | 139,891 | 1,769,175 | 3,727,883 | 5,497,058 | 623,165 | 2016 | 40 Years |
| Venice, FL | - | 281,936 | 1,291,748 | 676 | 281,936 | 1,292,424 | 1,574,360 | 204,466 | 2016 | 40 Years |
| Vero Beach, FL | - | 4,469,033 | - | - | 4,469,033 | - | 4,469,033 | - | 2016 | - |
| Dalton, GA | - | 211,362 | 220,927 | - | 211,362 | 220,927 | 432,289 | 35,882 | 2016 | 40 Years |
| Crystal Lake, IL | - | 2,446,521 | 7,012,819 | 523,271 | 2,446,521 | 7,536,090 | 9,982,611 | 1,089,398 | 2016 | 40 Years |
| Glenwood, IL | - | 815,483 | 970,108 | - | 815,483 | 970,108 | 1,785,591 | 149,558 | 2016 | 40 Years |
| Morris, IL | - | 1,206,749 | 2,062,495 | - | 1,206,749 | 2,062,495 | 3,269,244 | 339,452 | 2016 | 40 Years |
| Bisknell, IN | - | 215,037 | 2,381,471 | - | 215,037 | 2,381,471 | 2,596,508 | 376,978 | 2016 | 40 Years |
| Fort Wayne, IN | - | 711,430 | 1,258,357 | (5,563) | 711,430 | 1,252,795 | 1,964,225 | 216,390 | 2016 | 40 Years |
| Indianapolis, IN | - | 734,434 | 970,175 | (2,700) | 734,434 | 967,475 | 1,701,909 | 163,419 | 2016 | 40 Years |
| Des Moines, IA | - | 322,797 | 1,374,153 | - | 322,797 | 1,374,153 | 1,696,950 | 226,163 | 2016 | 40 Years |
| Frankfort, KY | - | - | 514,277 | - | 514,277 | - | 514,277 | - | 2016 | - |
| DeRidder, LA | - | 814,891 | 2,156,542 | 10,536 | 814,891 | 2,167,078 | 2,981,969 | 350,784 | 2016 | 40 Years |
| Lake Charles, LA | - | 1,308,418 | 4,235,719 | 5,761 | 1,308,418 | 4,241,480 | 5,549,898 | 644,940 | 2016 | 40 Years |
| Shreveport, LA | - | 891,872 | 2,058,257 | - | 891,872 | 2,058,257 | 2,950,129 | 334,476 | 2016 | 40 Years |
| Marshall, MI | - | 339,813 | - | - | 339,813 | - | 339,813 | - | 2016 | - |
| Mt Pleasant, MI | - | - | 511,282 | (254) | 511,028 | - | 511,028 | - | 2016 | - |
| Norton Shores, MI | - | 495,605 | 667,982 | 42,874 | 495,605 | 710,856 | 1,206,461 | 110,016 | 2016 | 40 Years |
| Stephenson, MI | - | 223,152 | 1,044,947 | 270 | 223,152 | 1,045,217 | 1,268,369 | 156,780 | 2016 | 40 Years |
| Sterling, MI | - | 127,844 | 905,607 | 25,464 | 127,844 | 931,071 | 1,058,915 | 143,356 | 2016 | 40 Years |
| Engle Bend, MN | - | 96,558 | 1,165,437 | - | 96,558 | 1,165,437 | 1,261,995 | 182,051 | 2016 | 40 Years |
| Brandon, MS | - | 428,464 | 969,346 | - | 428,464 | 969,346 | 1,397,810 | 161,558 | 2016 | 40 Years |
| Clinton, MS | - | 370,264 | 1,057,143 | - | 370,264 | 1,057,143 | 1,427,407 | 176,191 | 2016 | 40 Years |
| Columbus, MS | - | 1,103,458 | 2,128,089 | (2,105) | 1,103,458 | 2,125,984 | 3,229,442 | 365,591 | 2016 | 40 Years |
| Holly Springs, MS | - | 413,316 | 952,574 | - | 413,316 | 952,574 | 1,365,890 | 154,686 | 2016 | 40 Years |
| Jackson, MS | - | 242,796 | 963,188 | - | 242,796 | 963,188 | 1,205,984 | 160,531 | 2016 | 40 Years |
| Jackson, MS | - | 732,944 | 2,862,813 | 33,902 | 732,944 | 2,896,715 | 3,629,659 | 453,382 | 2016 | 40 Years |
| Meridian, MS | - | 396,329 | 1,152,729 | - | 396,329 | 1,152,729 | 1,549,058 | 192,103 | 2016 | 40 Years |
| Pearl, MS | - | 299,839 | 616,351 | 7,355 | 299,839 | 623,706 | 923,545 | 93,506 | 2016 | 40 Years |
| Ridgeland, MS | - | 407,041 | 864,498 | - | 407,041 | 864,498 | 1,271,539 | 144,083 | 2016 | 40 Years |
| Bowling Green, MO | - | 360,201 | 2,809,170 | 5,000 | 360,201 | 2,814,170 | 3,174,371 | 459,083 | 2016 | 40 Years |
| St Robert, MO | - | 394,859 | 1,305,366 | 24,333 | 394,859 | 1,329,699 | 1,724,558 | 201,206 | 2016 | 40 Years |
| Beatty, NV | - | 198,928 | 1,265,084 | 8,051 | 198,928 | 1,273,135 | 1,472,063 | 198,821 | 2016 | 40 Years |
| Alamogordo, NM | - | 654,965 | 2,716,166 | 4,436 | 654,965 | 2,720,602 | 3,375,567 | 425,605 | 2016 | 40 Years |
| Alamogordo, NM | - | 524,763 | 941,615 | 7,522 | 524,763 | 949,137 | 1,473,900 | 144,309 | 2016 | 40 Years |
| Alcalde, NM | - | 435,486 | 836,499 | - | 435,486 | 836,499 | 1,271,985 | 125,475 | 2016 | 40 Years |
| Cimarron, NM | - | 345,693 | 1,236,437 | 7,613 | 345,693 | 1,244,050 | 1,589,743 | 189,160 | 2016 | 40 Years |
| La Luz, NM | - | 487,401 | 835,455 | - | 487,401 | 835,455 | 1,322,856 | 127,059 | 2016 | 40 Years |
| Fayetteville, NC | - | 1,267,529 | 2,527,462 | 16,897 | 1,267,529 | 2,544,359 | 5,811,888 | 386,790 | 2016 | 40 Years |
| Gastonia, NC | - | 401,119 | 979,803 | 1,631 | 401,119 | 981,434 | 1,382,553 | 149,261 | 2016 | 40 Years |
| Devils Lake, ND | - | 323,508 | 1,133,773 | 955 | 323,508 | 1,134,728 | 1,458,236 | 179,271 | 2016 | 40 Years |
| Cambridge, OH | - | 168,717 | 1,113,232 | - | 168,717 | 1,113,232 | 1,281,949 | 190,177 | 2016 | 40 Years |
| Columbus, OH | - | 1,109,044 | 1,291,313 | - | 1,109,044 | 1,291,313 | 2,400,357 | 209,773 | 2016 | 40 Years |
| Grove City, OH | - | 334,032 | 176,274 | - | 334,032 | 176,274 | 510,306 | 28,630 | 2016 | 40 Years |
| Lorain, OH | - | 808,162 | 1,390,481 | 10,000 | 808,162 | 1,400,481 | 2,208,643 | 237,977 | 2016 | 40 Years |
| Reynoldsburg, OH | - | 843,336 | 1,197,966 | - | 843,336 | 1,197,966 | 2,041,302 | 194,617 | 2016 | 40 Years |
| Springfield, OH | - | 982,451 | 3,957,512 | 7,191 | 982,451 | 3,964,703 | 4,947,154 | 676,131 | 2016 | 40 Years |
| Ardmore, OK | - | 571,993 | 1,590,151 | - | 571,993 | 1,590,151 | 2,162,144 | 261,714 | 2016 | 40 Years |
| Dillon, SC | - | 85,896 | 1,697,160 | - | 85,896 | 1,697,160 | 1,783,056 | 293,467 | 2016 | 40 Years |
| Jasper, TN | - | 190,582 | 966,125 | 6,888 | 190,582 | 973,013 | 1,163,595 | 145,929 | 2016 | 40 Years |
| Carthage, TX | - | 597,995 | 1,965,290 | 27,357 | 597,995 | 1,992,647 | 2,590,642 | 319,968 | 2016 | 40 Years |
| Cedar Park, TX | - | 1,386,802 | 4,656,229 | 758,023 | 1,410,827 | 5,390,227 | 6,801,054 | 915,117 | 2016 | 40 Years |
| Granbury, TX | - | 944,223 | 2,362,540 | - | 944,223 | 2,362,540 | 3,306,763 | 383,921 | 2016 | 40 Years |
| Hemphill, TX | - | 250,503 | 1,955,918 | 11,886 | 250,503 | 1,967,804 | 2,218,307 | 307,092 | 2016 | 40 Years |
| Lampasas, TX | - | 245,312 | 1,063,701 | 45,197 | 245,312 | 1,108,898 | 1,354,210 | 179,803 | 2016 | 40 Years |
| Lubbock, TX | - | 1,501,556 | 2,341,031 | - | 1,501,556 | 2,341,031 | 3,842,587 | 380,427 | 2016 | 40 Years |
| Odessa, TX | - | 921,043 | 2,434,384 | 5,615 | 921,043 | 2,439,999 | 3,361,042 | 396,310 | 2016 | 40 Years |
| Port Arthur, TX | - | 1,889,732 | 8,121,417 | 439,354 | 1,889,732 | 8,560,771 | 10,450,503 | 1,300,967 | 2016 | 40 Years |
| Provo, UT | - | 1,692,785 | 5,874,584 | 43,650 | 1,692,785 | 5,918,234 | 7,611,019 | 956,869 | 2016 | 40 Years |
| Tappahannock, VA | - | 1,076,745 | 14,904 | - | 1,076,745 | 14,904 | 1,091,649 | 2,395 | 2016 | 40 Years |
| Manitowoc, WI | - | 879,237 | 4,467,960 | 1,313 | 879,237 | 4,469,273 | 5,348,510 | 707,303 | 2016 | 40 Years |
| Oak Creek, WI | - | 487,277 | 3,082,180 | 382,092 | 487,277 | 3,464,272 | 3,951,549 | 564,008 | 2016 | 40 Years |
| Oxford, AL | - | 148,407 | 641,820 | - | 148,407 | 641,820 | 790,227 | 90,897 | 2017 | 40 Years |
| Oxford, AL | - | 255,786 | 7,273,871 | 81,627 | 255,786 | 7,355,498 | 7,611,284 | 1,041,452 | 2017 | 40 Years |
| Oxford, AL | - | 24,875 | 600,936 | (15,612) | 24,875 | 585,324 | 610,199 | 84,129 | 2017 | 40 Years |
| Jonesboro, AR | - | 3,656,554 | 3,219,456 | 11,058 | 3,656,554 | 3,230,514 | 6,887,068 | 423,001 | 2017 | 40 Years |
| Lowell, AR | - | 949,519 | 1,435,056 | 10,229 | 949,519 | 1,445,285 | 2,394,804 | 180,597 | 2017 | 40 Years |
| Southington, CT | - | 1,088,181 | 1,287,837 | 185,818 | 1,088,181 | 1,473,655 | 2,561,836 | 185,998 | 2017 | 40 Years |
| Millsboro, DE | - | 3,501,109 | - | (20,531) | 3,480,578 | - | 3,480,578 | - | 2017 | - |
| Jacksonville, FL | - | 2,298,885 | 2,894,565 | 29,661 | 2,298,885 | 2,924,226 | 5,223,111 | 372,024 | 2017 | 40 Years |
| Orange Park, FL | - | 214,858 | 2,304,095 | - | 214,858 | 2,304,095 | 2,518,953 | 316,787 | 2017 | 40 Years |

F-42

# Agree Realty Corporation  
Schedule III - Real Estate and Accumulated Depreciation

December 31, 2022

| COLUMN A | COLUMN B | COLUMN C |  | COLUMN D | COLUMN E |  |  | COLUMN F | COLUMN G | COLUMN H |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Description | Encumbrance | Initial Cost |  | Costs Capitalized Subsequent to Acquisition | Gross Amount at Which Carried at |  |  | Accumulated Depreciation | Date of Acquisition | Life on Which Depreciation in Latest Income Statement is Computed (in years) |
|  |  | Land | Building and Improvements |  | Land | Close of Period Building and Improvements | Total |  |  |  |
| Pott Richey, FL | - | 1,140,182 | 1,649,773 | - | 1,140,182 | 1,649,773 | 2,789,955 | 226,833 | 2017 | 40 Years |
| American, GA | - | 1,318,463 | - | - | 1,318,463 | - | 1,318,463 | - | 2017 | - |
| Brunswick, GA | - | 1,279,688 | 2,158,863 | 205 | 1,279,688 | 2,159,068 | 3,438,756 | 310,208 | 2017 | 40 Years |
| Brunswick, GA | - | 126,335 | 1,626,530 | - | 126,335 | 1,626,530 | 1,752,865 | 206,705 | 2017 | 40 Years |
| Buford, GA | - | 341,860 | 1,023,813 | - | 341,860 | 1,023,813 | 1,365,673 | 140,742 | 2017 | 40 Years |
| Carrollton, GA | - | 597,465 | 886,644 | - | 597,465 | 886,644 | 1,484,109 | 119,982 | 2017 | 40 Years |
| Decatur, GA | - | 558,859 | 1,429,106 | - | 558,859 | 1,429,106 | 1,987,965 | 181,615 | 2017 | 40 Years |
| Metter, GA | - | 256,743 | 766,818 | - | 256,743 | 766,818 | 1,023,561 | 103,796 | 2017 | 40 Years |
| Villa Rica, GA | - | 410,936 | 1,311,444 | - | 410,936 | 1,311,444 | 1,722,380 | 183,029 | 2017 | 40 Years |
| Chicago, IL | - | 2,899,155 | 9,822,986 | - | 2,899,155 | 9,822,986 | 12,722,141 | 1,411,977 | 2017 | 40 Years |
| Chicago, IL | - | 2,081,151 | 5,197,315 | - | 2,081,151 | 5,197,315 | 7,278,466 | 746,756 | 2017 | 40 Years |
| Galesburg, IL | - | 214,280 | 979,108 | - | 214,280 | 979,108 | 1,193,388 | 134,609 | 2017 | 40 Years |
| Mundelein, IL | - | 1,238,743 | - | - | 1,238,743 | - | 1,238,743 | - | 2017 | - |
| Mundelein, IL | - | 1,743,222 | - | - | 1,743,222 | - | 1,743,222 | - | 2017 | - |
| Mundelein, IL | - | 1,803,068 | - | - | 1,803,068 | - | 1,803,068 | - | 2017 | - |
| Springfield, IL | - | 574,805 | 1,554,786 | 9,660 | 574,805 | 1,564,446 | 2,139,251 | 194,892 | 2017 | 40 Years |
| Woodstock, IL | - | 683,419 | 1,002,207 | 284 | 683,419 | 1,002,491 | 1,685,910 | 127,398 | 2017 | 40 Years |
| Frankfort, IN | - | 50,458 | 2,008,275 | - | 50,458 | 2,008,275 | 2,058,733 | 284,506 | 2017 | 40 Years |
| Kokomo, IN | - | 95,196 | 1,484,778 | (30,615) | 95,196 | 1,454,163 | 1,549,359 | 186,586 | 2017 | 40 Years |
| Nashville, IN | - | 484,117 | 2,458,215 | - | 484,117 | 2,458,215 | 2,942,332 | 337,766 | 2017 | 40 Years |
| Rosland Park, KS | - | 7,829,806 | - | (1,247,898) | 6,581,908 | - | 6,581,908 | - | 2017 | - |
| Georgetown, KY | - | 1,996,456 | 6,315,768 | 928 | 1,996,456 | 6,316,696 | 8,313,152 | 875,591 | 2017 | 40 Years |
| Hopkinsville, KY | - | 413,269 | 996,619 | - | 413,269 | 996,619 | 1,409,888 | 137,011 | 2017 | 40 Years |
| Salversville, KY | - | 289,663 | 906,455 | 596 | 289,663 | 907,051 | 1,196,714 | 126,523 | 2017 | 40 Years |
| Amite, LA | - | 601,238 | 1,695,242 | - | 601,238 | 1,695,242 | 2,296,480 | 236,580 | 2017 | 40 Years |
| Bonner City, LA | - | 797,899 | 2,925,864 | 146 | 797,899 | 2,926,010 | 3,723,909 | 371,844 | 2017 | 40 Years |
| Kenner, LA | - | 323,188 | 859,298 | (1,000) | 323,188 | 858,298 | 1,181,486 | 112,617 | 2017 | 40 Years |
| Mandeville, LA | - | 834,891 | 1,294,812 | 205 | 834,891 | 1,295,017 | 2,129,908 | 169,889 | 2017 | 40 Years |
| New Orleans, LA | - | - | 6,846,313 | 121,177 | - | 6,967,490 | 6,967,490 | 944,359 | 2017 | 40 Years |
| Baltimore, MD | - | 782,819 | 745,092 | 7,968 | 782,819 | 753,060 | 1,535,879 | 96,438 | 2017 | 40 Years |
| Grand Rapids, MI | - | 7,015,035 | - | 2,635,983 | 1,750,000 | 7,901,018 | 9,651,018 | 888,865 | 2017 | 40 Years |
| Bloomington, MN | - | 1,491,302 | - | 619 | 1,491,921 | - | 1,491,921 | - | 2017 | - |
| Monticello, MN | - | 449,025 | 979,816 | 9,368 | 449,025 | 989,184 | 1,438,209 | 145,894 | 2017 | 40 Years |
| Mountain Iron, MN | - | 177,918 | 1,139,849 | - | 177,918 | 1,139,849 | 1,317,767 | 156,713 | 2017 | 40 Years |
| Gulfport, MS | - | 671,824 | 1,176,505 | - | 671,824 | 1,176,505 | 1,848,329 | 164,203 | 2017 | 40 Years |
| Jackson, MS | - | 802,230 | 1,434,997 | - | 802,230 | 1,434,997 | 2,237,227 | 200,279 | 2017 | 40 Years |
| McComb, MS | - | 67,026 | 685,426 | - | 67,026 | 685,426 | 752,452 | 94,201 | 2017 | 40 Years |
| Kansas City, MO | - | 1,390,880 | 1,588,573 | - | 1,390,880 | 1,588,573 | 2,979,453 | 240,861 | 2017 | 40 Years |
| Springfield, MO | - | 616,344 | 2,448,360 | 13,285 | 616,344 | 2,461,645 | 3,077,989 | 307,623 | 2017 | 40 Years |
| St. Charles, MO | - | 736,242 | 2,122,426 | 271,734 | 736,242 | 2,394,160 | 3,130,402 | 356,446 | 2017 | 40 Years |
| St. Peters, MO | - | 1,364,670 | - | - | 1,364,670 | - | 1,364,670 | - | 2017 | - |
| Boulder City, NV | - | 566,639 | 993,399 | - | 566,639 | 993,399 | 1,560,038 | 136,515 | 2017 | 40 Years |
| Egg Harbor, NJ | - | 520,510 | 1,087,374 | - | 520,510 | 1,087,374 | 1,607,884 | 156,288 | 2017 | 40 Years |
| Secaucus, NJ | - | 19,915,781 | 17,306,541 | 84,153 | 19,915,781 | 17,390,694 | 37,306,475 | 2,174,176 | 2017 | 40 Years |
| Sewell, NJ | - | 1,809,771 | 6,892,134 | - | 1,809,771 | 6,892,134 | 8,701,905 | 947,662 | 2017 | 40 Years |
| Santa Fe, NM | - | 1,072,340 | 4,013,237 | 476 | 1,072,340 | 4,013,713 | 5,086,053 | 601,981 | 2017 | 40 Years |
| Statesville, NC | - | 287,467 | 867,849 | - | 287,467 | 867,849 | 1,155,316 | 126,537 | 2017 | 40 Years |
| Jacksonville, NC | - | 308,321 | 875,652 | 31,340 | 308,321 | 906,992 | 1,215,313 | 128,507 | 2017 | 40 Years |
| Minot, ND | - | 928,796 | 1,619,726 | - | 928,796 | 1,619,726 | 2,548,522 | 226,029 | 2017 | 40 Years |
| Grandview Heights, OH | - | 1,276,870 | 8,557,690 | (20,518) | 1,276,870 | 8,537,172 | 9,814,042 | 1,192,987 | 2017 | 40 Years |
| Hilliard, OH | - | 1,001,228 | - | - | 1,001,228 | - | 1,001,228 | - | 2017 | - |
| Edmond, OK | - | 1,063,243 | 3,816,155 | 9,878 | 1,063,243 | 3,826,033 | 4,889,276 | 493,908 | 2017 | 40 Years |
| Oklahoma City, OK | - | 868,648 | 1,820,174 | 7,835 | 868,648 | 1,828,009 | 2,696,657 | 244,122 | 2017 | 40 Years |
| Erie, PA | - | 425,267 | 1,284,883 | - | 425,267 | 1,284,883 | 1,710,150 | 171,185 | 2017 | 40 Years |
| Pittsburgh, PA | - | 692,454 | 2,509,358 | - | 692,454 | 2,509,358 | 3,201,812 | 344,860 | 2017 | 40 Years |
| Sumter, SC | - | 132,204 | 1,095,478 | - | 132,204 | 1,095,478 | 1,227,682 | 152,885 | 2017 | 40 Years |
| Chattanooga, TN | - | 2,089,237 | 3,595,808 | 195 | 2,089,237 | 3,596,003 | 5,685,240 | 456,989 | 2017 | 40 Years |
| Etowah, TN | - | 74,057 | 862,436 | 78,324 | 74,057 | 940,760 | 1,014,817 | 130,721 | 2017 | 40 Years |
| Memphis, TN | - | 1,661,764 | 3,874,356 | 15,300 | 1,661,764 | 3,889,656 | 5,551,420 | 565,318 | 2017 | 40 Years |
| Alamo, TX | - | 104,878 | 821,355 | 13,274 | 104,878 | 834,629 | 939,507 | 104,246 | 2017 | 40 Years |
| Andrews, TX | - | 172,373 | 817,252 | (292) | 172,373 | 816,960 | 989,333 | 117,443 | 2017 | 40 Years |
| Arlington, TX | - | 497,852 | 1,601,007 | 1,783 | 497,852 | 1,602,790 | 2,100,642 | 223,647 | 2017 | 40 Years |
| Canyon Lake, TX | - | 382,522 | 1,026,179 | (281) | 382,522 | 1,025,898 | 1,408,420 | 128,239 | 2017 | 40 Years |
| Corpus Christi, TX | - | 185,375 | 1,413,298 | - | 185,375 | 1,413,298 | 1,598,673 | 197,122 | 2017 | 40 Years |
| Fort Stockton, TX | - | 185,474 | 1,186,339 | - | 185,474 | 1,186,339 | 1,371,813 | 165,563 | 2017 | 40 Years |
| Fort Worth, TX | - | 1,016,587 | 4,622,507 | 257,308 | 1,016,587 | 4,879,815 | 5,896,402 | 653,807 | 2017 | 40 Years |
| Lufkin, TX | - | 1,497,171 | 4,948,906 | 20,434 | 1,497,171 | 4,969,340 | 6,466,511 | 712,576 | 2017 | 40 Years |
| Newport News, VA | - | 2,458,053 | 5,390,475 | 758,009 | 2,458,053 | 6,148,484 | 8,606,537 | 944,499 | 2017 | 40 Years |
| Appleton, WI | - | 417,249 | 1,525,582 | 9,779 | 417,249 | 1,535,361 | 1,952,610 | 210,320 | 2017 | 40 Years |
| Ondaske, WI | - | 821,084 | 2,651,772 | - | 821,084 | 2,651,772 | 3,472,856 | 370,089 | 2017 | 40 Years |
| Athens, AL | - | 253,858 | 1,204,570 | - | 253,858 | 1,204,570 | 1,458,428 | 120,457 | 2018 | 40 Years |
| Birmingham, AL | - | 1,635,912 | 2,739,834 | - | 1,635,912 | 2,739,834 | 4,375,746 | 325,329 | 2018 | 40 Years |
| Bose, AL | - | 379,197 | 898,689 | - | 379,197 | 898,689 | 1,277,886 | 106,635 | 2018 | 40 Years |

F-43

# Agree Realty Corporation  
Schedule III - Real Estate and Accumulated Depreciation

December 31, 2022

| COLUMN A | COLUMN B | COLUMN C |  | COLUMN D | COLUMN E |  |  | COLUMN F | COLUMN G | COLUMN H |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Description | Encumbrance | Initial Cost |  | Costs Capitalized Subsequent to Acquisition | Gross Amount at Which Carried at |  |  | Accumulated Depreciation | Date of Acquisition | Life on Which Depreciation in Latest Income Statement is Computed (in years) |
|  |  | Land | Building and Improvements |  | Land | Close of Period Building and Improvements | Total |  |  |  |
| Roanoke, AL | - | 110,924 | 938,451 | - | 110,924 | 938,451 | 1,049,375 | 99,786 | 2018 | 40 Years |
| Selma, AL | - | 206,831 | 1,790,939 | (24,494) | 206,831 | 1,766,445 | 1,973,276 | 177,257 | 2018 | 40 Years |
| Maricopa, AZ | - | 2,166,955 | 9,505,724 | 14,600 | 2,166,955 | 9,520,324 | 11,687,279 | 971,512 | 2018 | 40 Years |
| Wakev, AZ | - | 322,510 | 1,159,624 | 1,163 | 322,510 | 1,160,787 | 1,483,297 | 132,916 | 2018 | 40 Years |
| St. Michaels, AZ | - | 127,874 | 1,043,962 | 12,012 | 127,874 | 1,055,974 | 1,183,848 | 111,482 | 2018 | 40 Years |
| Little Rock, AR | - | 390,921 | 856,987 | - | 390,921 | 856,987 | 1,247,908 | 85,699 | 2018 | 40 Years |
| Grand Junction, CO | - | 835,792 | 1,915,976 | - | 835,792 | 1,915,976 | 2,751,768 | 191,598 | 2018 | 40 Years |
| Brookfield, CT | - | 343,489 | 835,106 | - | 343,489 | 835,106 | 1,178,595 | 83,511 | 2018 | 40 Years |
| Manchester, CT | - | 316,847 | 558,659 | - | 316,847 | 558,659 | 875,506 | 55,866 | 2018 | 40 Years |
| Waterbury, CT | - | 663,667 | 607,457 | - | 663,667 | 607,457 | 1,271,124 | 60,746 | 2018 | 40 Years |
| Apopka, FL | - | 587,585 | 2,363,721 | 73,672 | 587,585 | 2,437,393 | 3,024,978 | 243,257 | 2018 | 40 Years |
| Cape Coral, FL | - | 554,721 | 1,009,404 | - | 554,721 | 1,009,404 | 1,564,125 | 100,940 | 2018 | 40 Years |
| Crystal River, FL | - | 369,723 | 1,015,324 | - | 369,723 | 1,015,324 | 1,385,047 | 124,790 | 2018 | 40 Years |
| DeFuniak Springs, FL | - | 226,898 | 835,016 | (18,770) | 200,998 | 842,146 | 1,043,144 | 87,649 | 2018 | 40 Years |
| Eustis, FL | - | 649,394 | 1,580,694 | - | 649,394 | 1,580,694 | 2,230,088 | 158,069 | 2018 | 40 Years |
| Hollywood, FL | - | 895,783 | 947,204 | - | 895,783 | 947,204 | 1,842,987 | 94,720 | 2018 | 40 Years |
| Homestead, FL | - | 650,821 | 948,265 | - | 650,821 | 948,265 | 1,599,086 | 94,826 | 2018 | 40 Years |
| Jacksonville, FL | - | 827,799 | 1,554,516 | - | 827,799 | 1,554,516 | 2,382,315 | 155,452 | 2018 | 40 Years |
| Marianna, FL | - | 257,760 | 886,801 | - | 257,760 | 886,801 | 1,144,561 | 88,680 | 2018 | 40 Years |
| Melbourne, FL | - | 497,607 | 1,549,974 | - | 497,607 | 1,549,974 | 2,047,581 | 154,997 | 2018 | 40 Years |
| Merritt Island, FL | - | 598,790 | 988,114 | - | 598,790 | 988,114 | 1,586,904 | 104,987 | 2018 | 40 Years |
| St. Petersburg, FL | - | 958,547 | 902,502 | - | 958,547 | 902,502 | 1,861,049 | 99,595 | 2018 | 40 Years |
| Tampa, FL | - | 488,002 | 1,209,902 | - | 488,002 | 1,209,902 | 1,697,904 | 133,593 | 2018 | 40 Years |
| Tampa, FL | - | 703,273 | 1,283,951 | - | 703,273 | 1,283,951 | 1,987,224 | 128,925 | 2018 | 40 Years |
| Titusville, FL | - | 137,421 | 1,017,394 | 12,059 | 137,421 | 1,029,453 | 1,166,874 | 102,870 | 2018 | 40 Years |
| Winter Haven, FL | - | 832,247 | 1,433,449 | - | 832,247 | 1,433,449 | 2,265,696 | 143,345 | 2018 | 40 Years |
| Albany, GA | - | 448,253 | 1,462,641 | 6,023 | 448,253 | 1,468,664 | 1,916,917 | 146,825 | 2018 | 40 Years |
| Austell, GA | - | 1,162,782 | 7,462,351 | - | 1,162,782 | 7,462,351 | 8,625,133 | 870,608 | 2018 | 40 Years |
| Conyers, GA | - | 330,549 | 941,133 | - | 330,549 | 941,133 | 1,271,682 | 94,113 | 2018 | 40 Years |
| Covington, GA | - | 744,321 | 1,235,171 | (43,000) | 744,321 | 1,192,171 | 1,936,492 | 122,865 | 2018 | 40 Years |
| Doraville, GA | - | 1,991,031 | 291,663 | 230,740 | 1,991,031 | 522,403 | 2,513,434 | 36,228 | 2018 | 40 Years |
| Douglasville, GA | - | 519,420 | 1,492,529 | - | 519,420 | 1,492,529 | 2,011,949 | 149,253 | 2018 | 40 Years |
| Lilburn, GA | - | 304,597 | 1,206,785 | - | 304,597 | 1,206,785 | 1,513,382 | 120,679 | 2018 | 40 Years |
| Marietta, GA | - | 1,257,433 | 1,563,755 | - | 1,257,433 | 1,563,755 | 2,821,188 | 188,889 | 2018 | 40 Years |
| Marietta, GA | - | 447,582 | 832,782 | - | 447,582 | 832,782 | 1,280,364 | 83,278 | 2018 | 40 Years |
| Pooler, GA | - | 989,819 | 1,220,271 | 734 | 989,819 | 1,221,005 | 2,210,824 | 137,345 | 2018 | 40 Years |
| Riverdale, GA | - | 474,072 | 879,835 | (3,750) | 474,072 | 879,835 | 1,350,157 | 87,983 | 2018 | 40 Years |
| Savannah, GA | - | 944,815 | 2,997,426 | 14,050 | 944,815 | 3,011,476 | 3,956,291 | 301,046 | 2018 | 40 Years |
| Statesboro, GA | - | 681,381 | 1,592,291 | 1,786 | 681,381 | 1,594,077 | 2,275,458 | 169,348 | 2018 | 40 Years |
| Union City, GA | - | 97,528 | 1,036,165 | - | 97,528 | 1,036,165 | 1,133,693 | 103,617 | 2018 | 40 Years |
| Nampa, ID | - | 496,676 | 5,163,257 | 37,265 | 496,676 | 5,200,522 | 5,697,198 | 573,512 | 2018 | 40 Years |
| Aurora, IL | - | 174,456 | 862,599 | - | 174,456 | 862,599 | 1,037,055 | 86,260 | 2018 | 40 Years |
| Bloomington, IL | - | 1,408,067 | 986,931 | 678 | 1,408,067 | 987,609 | 2,395,676 | 115,201 | 2018 | 40 Years |
| Carlinville, IL | - | 208,519 | 1,113,537 | 1,162 | 208,519 | 1,114,699 | 1,323,218 | 127,635 | 2018 | 40 Years |
| Centralia, IL | - | 277,527 | 351,547 | - | 277,527 | 351,547 | 629,074 | 35,155 | 2018 | 40 Years |
| Chicago, IL | - | 1,569,578 | 632,848 | - | 1,569,578 | 632,848 | 2,202,426 | 77,759 | 2018 | 40 Years |
| Flora, IL | - | 232,155 | 1,121,688 | 4,087 | 232,155 | 1,125,775 | 1,357,930 | 114,889 | 2018 | 40 Years |
| Gurnee, IL | - | 1,341,679 | 951,320 | - | 1,341,679 | 951,320 | 2,292,999 | 112,953 | 2018 | 40 Years |
| Lake Zurich, IL | - | 290,272 | 857,467 | 19,450 | 290,272 | 876,917 | 1,167,189 | 90,127 | 2018 | 40 Years |
| Macomb, IL | - | 85,753 | 661,375 | - | 85,753 | 661,375 | 747,128 | 66,137 | 2018 | 40 Years |
| Morris, IL | - | 331,622 | 1,842,994 | 3,880 | 331,622 | 1,846,874 | 2,178,496 | 196,182 | 2018 | 40 Years |
| Newton, IL | - | 510,192 | 1,069,075 | 2,500 | 510,192 | 1,071,575 | 1,581,767 | 116,051 | 2018 | 40 Years |
| Northlake, IL | - | 353,337 | 564,677 | 4,343 | 353,337 | 569,020 | 922,357 | 58,930 | 2018 | 40 Years |
| Rockford, IL | - | 270,180 | 708,041 | - | 270,180 | 708,041 | 978,221 | 87,022 | 2018 | 40 Years |
| Greenwood, IN | - | 1,586,786 | 1,232,818 | 1,162 | 1,586,786 | 1,233,980 | 2,820,766 | 141,303 | 2018 | 40 Years |
| Hammond, IN | - | 230,142 | - | - | 230,142 | - | 230,142 | - | 2018 | - |
| Indianapolis, IN | - | 132,291 | 311,647 | - | 132,291 | 311,647 | 443,938 | 31,165 | 2018 | 40 Years |
| Mishawake, IN | - | 1,263,680 | 4,106,900 | - | 1,263,680 | 4,106,900 | 5,370,580 | 436,358 | 2018 | 40 Years |
| South Bend, IN | - | 420,571 | 2,772,376 | - | 420,571 | 2,772,376 | 3,192,947 | 340,725 | 2018 | 40 Years |
| Warsaw, IN | - | 583,174 | 1,118,270 | 58,246 | 583,174 | 1,176,516 | 1,759,690 | 142,289 | 2018 | 40 Years |
| Ackley, IA | - | 202,968 | 896,444 | - | 202,968 | 896,444 | 1,099,412 | 108,237 | 2018 | 40 Years |
| Ottumwa, IA | - | 227,562 | 5,794,123 | - | 227,562 | 5,794,123 | 6,021,685 | 712,172 | 2018 | 40 Years |
| Riceville, IA | - | 154,294 | 742,421 | - | 154,294 | 742,421 | 896,715 | 89,604 | 2018 | 40 Years |
| Riverside, IA | - | 579,935 | 1,594,085 | - | 579,935 | 1,594,085 | 2,174,020 | 179,335 | 2018 | 40 Years |
| Orbendale, IA | - | 68,172 | 2,938,611 | (85,150) | 593,022 | 2,328,611 | 2,921,633 | 333,674 | 2018 | 40 Years |
| Overland Park, KS | - | 1,053,287 | 6,141,649 | 219 | 1,053,287 | 6,141,868 | 7,195,155 | 652,569 | 2018 | 40 Years |
| Ekron, KY | - | 95,655 | 802,880 | - | 95,655 | 802,880 | 898,535 | 90,324 | 2018 | 40 Years |
| Florence, KY | - | 601,820 | 1,054,572 | - | 601,820 | 1,054,572 | 1,656,392 | 105,457 | 2018 | 40 Years |
| Chalmette, LA | - | 290,396 | 1,297,684 | - | 290,396 | 1,297,684 | 1,588,080 | 129,768 | 2018 | 40 Years |
| Donaldsonville, LA | - | 542,118 | 2,418,183 | 31,277 | 542,118 | 2,449,460 | 2,991,578 | 268,445 | 2018 | 40 Years |
| Franklinton, LA | - | 193,192 | 925,598 | - | 193,192 | 925,598 | 1,118,790 | 98,345 | 2018 | 40 Years |
| Franklinton, LA | - | 242,651 | 2,462,533 | - | 242,651 | 2,462,533 | 2,705,184 | 271,905 | 2018 | 40 Years |
| Franklinton, LA | - | 396,560 | 1,122,737 | - | 396,560 | 1,122,737 | 1,519,297 | 119,291 | 2018 | 40 Years |

F-44

# Agree Realty Corporation  
Schedule III - Real Estate and Accumulated Depreciation

December 31, 2022

| COLUMN A | COLUMN B | COLUMN C |  | COLUMN D | COLUMN E |  |  | COLUMN F | COLUMN G | COLUMN H |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Description | Encumbrance | Initial Cost |  | Costs Capitalized Subsequent to Acquisition | Gross Amount at Which Carried at |  |  | Accumulated Depreciation | Date of Acquisition | Life on Which Depreciation in Latest Income Statement is Computed (in years) |
|  |  | Land | Building and Improvements |  | Land | Close of Period Building and Improvements | Total |  |  |  |
| Franklinton, LA | - | 163,258 | 747,944 | - | 163,258 | 747,944 | 911,202 | 79,469 | 2018 | 40 Years |
| Harvey, LA | - | 728,822 | 1,468,688 | - | 728,822 | 1,468,688 | 2,197,510 | 174,335 | 2018 | 40 Years |
| Jena, LA | - | 772,878 | 2,392,129 | 2,040 | 774,918 | 2,392,129 | 3,167,047 | 264,131 | 2018 | 40 Years |
| Jennings, LA | - | 128,158 | 2,329,137 | 150,189 | 128,158 | 2,479,326 | 2,607,484 | 269,690 | 2018 | 40 Years |
| New Orleans, LA | - | 293,726 | - | - | 293,726 | - | 293,726 | - | 2018 | - |
| Pine Grove, LA | - | 238,223 | 758,573 | - | 238,223 | 758,573 | 996,796 | 80,598 | 2018 | 40 Years |
| Rayville, LA | - | 310,034 | 2,365,203 | - | 310,034 | 2,365,203 | 2,675,237 | 261,158 | 2018 | 40 Years |
| Roseland, LA | - | 307,331 | 872,252 | - | 307,331 | 872,252 | 1,179,583 | 92,677 | 2018 | 40 Years |
| Talistock, LA | - | 150,802 | 1,031,214 | 41,717 | 150,802 | 1,072,931 | 1,223,733 | 113,477 | 2018 | 40 Years |
| Baltimore, MD | - | 699,157 | 651,927 | - | 699,157 | 651,927 | 1,351,084 | 65,193 | 2018 | 40 Years |
| Salisbury, MD | - | 305,215 | 1,193,870 | - | 305,215 | 1,193,870 | 1,499,085 | 119,387 | 2018 | 40 Years |
| Springfield, MA | - | 153,428 | 826,741 | - | 153,428 | 826,741 | 980,169 | 82,674 | 2018 | 40 Years |
| Ann Arbor, MI | - | 735,859 | 2,489,707 | - | 735,859 | 2,489,707 | 3,225,566 | 305,980 | 2018 | 40 Years |
| Belleville, MI | - | 598,203 | 3,970,176 | - | 598,203 | 3,970,176 | 4,568,379 | 487,909 | 2018 | 40 Years |
| Grand Blanc, MI | - | 1,589,886 | 3,738,477 | - | 1,589,886 | 3,738,477 | 5,328,363 | 459,443 | 2018 | 40 Years |
| Jackson, MI | - | 1,451,971 | 2,548,436 | - | 1,451,971 | 2,548,436 | 4,000,407 | 313,187 | 2018 | 40 Years |
| Kentwood, MI | - | 939,481 | 3,438,259 | - | 939,481 | 3,438,259 | 4,377,740 | 422,555 | 2018 | 40 Years |
| Lake Orizes, MI | - | 1,172,982 | 2,349,762 | - | 1,172,982 | 2,349,762 | 3,522,744 | 288,773 | 2018 | 40 Years |
| Onaway, MI | - | 17,557 | 935,308 | - | 17,557 | 935,308 | 952,865 | 107,171 | 2018 | 40 Years |
| Champlin, MN | - | 307,271 | 1,602,196 | 18,429 | 307,271 | 1,620,625 | 1,927,896 | 161,947 | 2018 | 40 Years |
| North Branch, MN | - | 533,175 | - | 205 | 533,380 | - | 533,380 | - | 2018 | - |
| Richfield, MN | - | 2,141,431 | 613,552 | - | 2,141,431 | 613,552 | 2,754,983 | 61,355 | 2018 | 40 Years |
| Bay St. Louis, MS | - | 547,498 | 2,080,989 | - | 547,498 | 2,080,989 | 2,628,487 | 229,776 | 2018 | 40 Years |
| Corinth, MS | - | 504,885 | 4,540,022 | 129,132 | 504,885 | 4,669,154 | 5,174,039 | 570,953 | 2018 | 40 Years |
| Forest, MS | - | 189,817 | 1,340,848 | - | 189,817 | 1,340,848 | 1,530,665 | 148,052 | 2018 | 40 Years |
| Southaven, MS | - | 150,931 | 826,123 | - | 150,931 | 826,123 | 977,054 | 82,612 | 2018 | 40 Years |
| Waynesboro, MS | - | 243,835 | 1,205,383 | - | 243,835 | 1,205,383 | 1,449,218 | 133,094 | 2018 | 40 Years |
| Blue Springs, MO | - | 431,698 | 1,704,870 | - | 431,698 | 1,704,870 | 2,136,568 | 191,795 | 2018 | 40 Years |
| Florissant, MO | - | 733,592 | 1,961,094 | (14,149) | 733,592 | 1,946,945 | 2,680,537 | 194,783 | 2018 | 40 Years |
| Joplin, MO | - | 789,880 | 384,638 | - | 789,880 | 384,638 | 1,174,518 | 47,268 | 2018 | 40 Years |
| Liberty, MO | - | 308,470 | 2,750,231 | - | 308,470 | 2,750,231 | 3,058,701 | 326,481 | 2018 | 40 Years |
| Neosho, MO | - | 687,812 | 1,115,054 | - | 687,812 | 1,115,054 | 1,802,866 | 125,444 | 2018 | 40 Years |
| Springfield, MO | - | 1,311,497 | 5,462,972 | - | 1,311,497 | 5,462,972 | 6,774,469 | 682,845 | 2018 | 40 Years |
| St. Peters, MO | - | 1,205,257 | 1,760,658 | - | 1,205,257 | 1,760,658 | 2,965,915 | 176,066 | 2018 | 40 Years |
| Webb City, MO | - | 1,324,146 | 1,501,744 | - | 1,324,146 | 1,501,744 | 2,825,890 | 184,578 | 2018 | 40 Years |
| Nashua, NH | - | 3,635,953 | 2,720,644 | 4,240 | 3,635,953 | 2,724,884 | 6,360,837 | 335,268 | 2018 | 40 Years |
| Forked River, NJ | - | 4,227,966 | 3,991,690 | (41,552) | 4,227,966 | 3,910,138 | 8,138,104 | 411,725 | 2018 | 40 Years |
| Forked River, NJ | - | 3,505,805 | (2,766,858) | 3,193,972 | 3,505,805 | 427,134 | 3,932,939 | 44,462 | 2018 | 40 Years |
| Forked River, NJ | - | 1,128,858 | 1,396,960 | - | 1,128,858 | 1,396,960 | 2,525,818 | 145,517 | 2018 | 40 Years |
| Forked River, NJ | - | 1,682,284 | 3,527,964 | (3,432,691) | 1,682,284 | 95,273 | 1,777,557 | 12,466 | 2018 | 40 Years |
| Forked River, NJ | - | 682,822 | - | - | 682,822 | - | 682,822 | - | 2018 | - |
| Woodland Park, NJ | - | 7,761,801 | 3,958,902 | - | 7,761,801 | 3,958,902 | 11,720,703 | 437,116 | 2018 | 40 Years |
| Bernalillo, NM | - | 899,770 | 2,037,465 | (78,875) | 820,895 | 2,037,465 | 2,858,360 | 251,720 | 2018 | 40 Years |
| Farmington, NM | - | 4,428,998 | - | - | 4,428,998 | - | 4,428,998 | - | 2018 | - |
| Canandaigua, NY | - | 154,996 | 1,352,174 | 156 | 154,996 | 1,352,330 | 1,507,326 | 146,470 | 2018 | 40 Years |
| Catskill, NY | - | 80,524 | 1,097,609 | 156 | 80,524 | 1,097,765 | 1,178,289 | 118,892 | 2018 | 40 Years |
| Clifton Park, NY | - | 925,613 | 1,858,613 | 7,421 | 925,613 | 1,866,034 | 2,791,647 | 186,557 | 2018 | 40 Years |
| Elmira, NY | - | 43,388 | 947,627 | - | 43,388 | 947,627 | 991,015 | 94,763 | 2018 | 40 Years |
| Geneseo, NY | - | 264,795 | 1,328,115 | 156 | 264,795 | 1,328,271 | 1,593,066 | 143,883 | 2018 | 40 Years |
| Greece, NY | - | 182,916 | 1,254,678 | 156 | 182,916 | 1,254,834 | 1,437,750 | 135,908 | 2018 | 40 Years |
| Hamburg, NY | - | 520,599 | 2,039,602 | - | 520,599 | 2,039,602 | 2,560,201 | 203,960 | 2018 | 40 Years |
| Latham, NY | - | 373,318 | 764,382 | - | 373,318 | 764,382 | 1,137,700 | 76,438 | 2018 | 40 Years |
| N. Syracuse, NY | - | 165,417 | 452,510 | 10,034 | 165,417 | 462,544 | 627,961 | 45,941 | 2018 | 40 Years |
| Niagara Falls, NY | - | 392,301 | 1,022,745 | - | 392,301 | 1,022,745 | 1,415,046 | 102,274 | 2018 | 40 Years |
| Rochester, NY | - | 100,136 | 895,792 | - | 100,136 | 895,792 | 995,928 | 97,044 | 2018 | 40 Years |
| Rochester, NY | - | 575,463 | 772,555 | - | 575,463 | 772,555 | 1,348,018 | 77,256 | 2018 | 40 Years |
| Rochester, NY | - | 375,721 | 881,257 | - | 375,721 | 881,257 | 1,256,978 | 88,126 | 2018 | 40 Years |
| Schenectady, NY | - | 74,387 | 1,279,967 | 8,540 | 74,387 | 1,288,507 | 1,362,894 | 139,434 | 2018 | 40 Years |
| Schenectady, NY | - | 453,006 | 726,404 | - | 453,006 | 726,404 | 1,179,410 | 72,640 | 2018 | 40 Years |
| Syracuse, NY | - | 339,207 | 918,302 | - | 339,207 | 918,302 | 1,257,509 | 91,830 | 2018 | 40 Years |
| Syracuse, NY | - | 607,053 | 259,331 | - | 607,053 | 259,331 | 866,384 | 25,933 | 2018 | 40 Years |
| Tonawanda, NY | - | 94,443 | 727,373 | 156 | 94,443 | 727,529 | 821,972 | 78,783 | 2018 | 40 Years |
| Tonawanda, NY | - | 131,021 | 576,915 | - | 131,021 | 576,915 | 707,936 | 57,692 | 2018 | 40 Years |
| W. Seneca, NY | - | 98,194 | 737,592 | - | 98,194 | 737,592 | 835,786 | 73,759 | 2018 | 40 Years |
| Williamsville, NY | - | 705,842 | 488,800 | - | 705,842 | 488,800 | 1,194,642 | 48,880 | 2018 | 40 Years |
| Charlotte, NC | - | 287,732 | 518,005 | - | 287,732 | 518,005 | 803,737 | 51,801 | 2018 | 40 Years |
| Concord, NC | - | 526,102 | 1,955,989 | 8,699 | 526,102 | 1,964,688 | 2,490,790 | 200,489 | 2018 | 40 Years |
| Durham, NC | - | 1,787,380 | 848,986 | - | 1,787,380 | 848,986 | 2,636,366 | 84,899 | 2018 | 40 Years |
| Fayetteville, NC | - | 108,898 | 1,769,274 | - | 108,898 | 1,769,274 | 1,878,172 | 176,927 | 2018 | 40 Years |
| Greensboro, NC | - | 402,957 | 1,351,015 | - | 402,957 | 1,351,015 | 1,753,972 | 135,101 | 2018 | 40 Years |
| Greenville, NC | - | 541,233 | 1,403,441 | - | 541,233 | 1,403,441 | 1,944,674 | 140,344 | 2018 | 40 Years |
| High Point, NC | - | 252,336 | 1,024,696 | - | 252,336 | 1,024,696 | 1,277,032 | 102,470 | 2018 | 40 Years |
| Kernersville, NC | - | 270,581 | 966,807 | - | 270,581 | 966,807 | 1,237,388 | 96,681 | 2018 | 40 Years |

F-45

# Agree Realty Corporation  
Schedule III - Real Estate and Accumulated Depreciation

December 31, 2022

| COLUMN A | COLUMN B | COLUMN C |  | COLUMN D | COLUMN E |  |  | COLUMN F | COLUMN G | COLUMN H |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Description | Encumbrance | Initial Cost |  | Costs Capitalized Subsequent to Acquisition | Gross Amount at Which Carried at |  |  | Accumulated Depreciation | Date of Acquisition | Life on Which Depreciation in Latest Income Statement is Computed (in years) |
|  |  | Land | Building and Improvements |  | Land | Close of Period Building and Improvements | Total |  |  |  |
| Pineville, NC | - | 1,390,592 | 6,390,201 | - | 1,390,592 | 6,390,201 | 7,780,793 | 692,249 | 2018 | 40 Years |
| Rockingham, NC | - | 245,976 | 955,579 | - | 245,976 | 955,579 | 1,201,555 | 107,503 | 2018 | 40 Years |
| Salisbury, NC | - | 572,085 | 700,288 | - | 572,085 | 700,288 | 1,272,373 | 70,029 | 2018 | 40 Years |
| Zobelon, NC | - | 160,107 | 1,077 | 36 | 161,220 | - | 161,220 | - | 2018 | - |
| Akron, OH | - | 445,299 | - | - | 445,299 | - | 445,299 | - | 2018 | - |
| Bellevue, OH | - | 272,308 | 1,127,365 | 62,975 | 272,308 | 1,190,340 | 1,462,648 | 135,519 | 2018 | 40 Years |
| Canton, OH | - | 981,941 | 1,076,113 | - | 981,941 | 1,076,113 | 2,058,054 | 107,611 | 2018 | 40 Years |
| Columbus, OH | - | 542,161 | 1,088,316 | - | 542,161 | 1,088,316 | 1,630,477 | 108,832 | 2018 | 40 Years |
| Fairview Park, OH | - | 338,732 | 400,013 | - | 338,732 | 400,013 | 738,745 | 40,001 | 2018 | 40 Years |
| Franklin, OH | - | 5,405,718 | - | - | 5,405,718 | - | 5,405,718 | - | 2018 | - |
| Middletown, OH | - | 311,389 | 1,451,469 | 1,163 | 311,389 | 1,452,632 | 1,764,021 | 166,340 | 2018 | 40 Years |
| Niles, OH | - | 334,783 | 798,136 | - | 334,783 | 798,136 | 1,132,919 | 79,814 | 2018 | 40 Years |
| North Olmsted, OH | - | 544,903 | 810,840 | 34,500 | 544,903 | 845,340 | 1,390,243 | 99,124 | 2018 | 40 Years |
| Warren, OH | - | 208,710 | 601,092 | - | 208,710 | 601,092 | 809,802 | 60,109 | 2018 | 40 Years |
| Warrensville Heights, OH | - | 735,534 | - | 627 | 736,161 | - | 736,161 | - | 2018 | - |
| Youngstown, OH | - | 323,983 | 989,430 | - | 323,983 | 989,430 | 1,313,413 | 98,943 | 2018 | 40 Years |
| Broken Arrow, OK | - | 919,176 | 1,276,754 | 1,778 | 919,176 | 1,278,532 | 2,197,708 | 143,790 | 2018 | 40 Years |
| Chickasha, OK | - | 230,000 | 2,881,525 | - | 230,000 | 2,881,525 | 3,111,525 | 312,165 | 2018 | 40 Years |
| Coweta, OK | - | 282,468 | 803,762 | - | 282,468 | 803,762 | 1,086,230 | 90,423 | 2018 | 40 Years |
| Midwest City, OK | - | 755,192 | 5,687,280 | 5,851 | 755,192 | 5,693,131 | 6,448,323 | 604,938 | 2018 | 40 Years |
| Oklahoma City, OK | - | 1,104,085 | 1,874,359 | 26,803 | 1,104,085 | 1,901,162 | 2,405,247 | 192,265 | 2018 | 40 Years |
| Shawnee, OK | - | 409,190 | 957,557 | - | 409,190 | 957,557 | 1,366,747 | 95,756 | 2018 | 40 Years |
| Wright City, OK | - | 38,302 | 1,010,645 | (1,300) | 38,302 | 1,009,345 | 1,047,647 | 107,078 | 2018 | 40 Years |
| Hillsboro, OR | - | 4,632,369 | 7,656,179 | - | 4,632,369 | 7,656,179 | 12,288,548 | 893,221 | 2018 | 40 Years |
| Carlisle, PA | - | 340,349 | 643,498 | - | 340,349 | 643,498 | 983,847 | 64,350 | 2018 | 40 Years |
| Erie, PA | - | 58,279 | 833,933 | - | 58,279 | 833,933 | 892,212 | 83,393 | 2018 | 40 Years |
| Johnstown, PA | - | 1,030,667 | - | 8,829 | 1,039,496 | - | 1,039,496 | - | 2018 | - |
| King of Prussia, PA | - | 5,097,320 | - | 1,202 | 5,098,522 | - | 5,098,522 | - | 2018 | - |
| Philadelphia, PA | - | 155,212 | 218,083 | - | 155,212 | 218,083 | 373,295 | 21,808 | 2018 | 40 Years |
| Philadelphia, PA | - | 127,690 | 122,516 | - | 127,690 | 122,516 | 250,206 | 12,252 | 2018 | 40 Years |
| Pittsburgh, PA | - | 927,083 | 5,126,243 | 25,347 | 927,083 | 5,151,590 | 6,078,673 | 534,292 | 2018 | 40 Years |
| Pittsburgh, PA | - | 1,397,965 | - | 1,810 | 1,399,775 | - | 1,399,775 | - | 2018 | - |
| Upper Darby, PA | - | 861,339 | 85,966 | 37,671 | 861,339 | 123,637 | 984,976 | 15,278 | 2018 | 40 Years |
| Wysen, PA | - | 1,668,272 | 1,699,343 | 24,395 | 1,668,272 | 1,723,738 | 3,392,010 | 182,995 | 2018 | 40 Years |
| Richmond, RI | - | 1,293,932 | 7,477,281 | 689,597 | 1,293,932 | 8,166,878 | 9,460,810 | 986,991 | 2018 | 40 Years |
| Warwick, RI | - | 687,454 | 2,108,256 | - | 687,454 | 2,108,256 | 2,795,710 | 210,826 | 2018 | 40 Years |
| Greenville, SC | - | 628,081 | 1,451,481 | - | 628,081 | 1,451,481 | 2,079,562 | 145,148 | 2018 | 40 Years |
| Lake City, SC | - | 57,911 | 932,874 | 869 | 57,911 | 933,743 | 991,654 | 95,312 | 2018 | 40 Years |
| Manning, SC | - | 245,546 | 989,236 | 146 | 245,546 | 989,382 | 1,234,928 | 107,164 | 2018 | 40 Years |
| Mt. Pleasant, SC | - | 555,387 | 1,042,804 | - | 555,387 | 1,042,804 | 1,598,191 | 104,280 | 2018 | 40 Years |
| Myrtle Beach, SC | - | 254,334 | 149,107 | - | 254,334 | 149,107 | 403,441 | 14,911 | 2018 | 40 Years |
| Spartanburg, SC | - | 709,338 | 1,618,382 | - | 709,338 | 1,618,382 | 2,327,720 | 161,838 | 2018 | 40 Years |
| Sumter, SC | - | 521,299 | 809,466 | - | 521,299 | 809,466 | 1,330,765 | 80,947 | 2018 | 40 Years |
| Walterboro, SC | - | 207,130 | 827,775 | - | 207,130 | 827,775 | 1,034,905 | 93,122 | 2018 | 40 Years |
| Chattanooga, TN | - | 1,179,566 | 1,236,591 | - | 1,179,566 | 1,236,591 | 2,416,157 | 123,659 | 2018 | 40 Years |
| Johnson City, TN | - | 181,117 | 1,232,151 | - | 181,117 | 1,232,151 | 1,413,268 | 123,215 | 2018 | 40 Years |
| Beaumont, TX | - | 936,389 | 2,725,502 | 21,662 | 936,389 | 2,747,164 | 3,683,553 | 274,581 | 2018 | 40 Years |
| Donna, TX | - | 962,302 | 1,620,925 | - | 962,302 | 1,620,925 | 2,583,227 | 175,566 | 2018 | 40 Years |
| Fairfield, TX | - | 125,098 | 970,816 | - | 125,098 | 970,816 | 1,095,914 | 101,127 | 2018 | 40 Years |
| Groves, TX | - | 596,586 | 2,250,794 | - | 596,586 | 2,250,794 | 2,847,380 | 225,079 | 2018 | 40 Years |
| Humble, TX | - | 173,885 | 867,347 | - | 173,885 | 867,347 | 1,041,232 | 86,735 | 2018 | 40 Years |
| Jacksboro, TX | - | 119,147 | 1,036,482 | - | 119,147 | 1,036,482 | 1,155,629 | 107,967 | 2018 | 40 Years |
| Kernah, TX | - | 2,324,774 | 2,835,597 | (44,661) | 2,324,774 | 2,790,936 | 5,115,710 | 297,908 | 2018 | 40 Years |
| Lamesa, TX | - | 66,019 | 1,493,146 | - | 66,019 | 1,493,146 | 1,559,165 | 174,194 | 2018 | 40 Years |
| Live Oak, TX | - | 371,174 | 1,880,746 | - | 371,174 | 1,880,746 | 2,251,920 | 211,582 | 2018 | 40 Years |
| Lufkin, TX | - | 382,643 | 1,054,911 | - | 382,643 | 1,054,911 | 1,437,554 | 105,491 | 2018 | 40 Years |
| Plano, TX | - | 452,721 | 822,683 | - | 452,721 | 822,683 | 1,275,404 | 82,268 | 2018 | 40 Years |
| Port Arthur, TX | - | 512,094 | 721,936 | - | 512,094 | 721,936 | 1,234,030 | 72,194 | 2018 | 40 Years |
| Porter, TX | - | 524,532 | 1,683,767 | 566 | 524,532 | 1,684,333 | 2,208,865 | 178,953 | 2018 | 40 Years |
| Tomball, TX | - | 1,336,029 | 1,849,554 | - | 1,336,029 | 1,849,554 | 3,185,583 | 208,071 | 2018 | 40 Years |
| Universal City, TX | - | 380,788 | 1,496,318 | - | 380,788 | 1,496,318 | 1,877,106 | 149,632 | 2018 | 40 Years |
| Waxahachie, TX | - | 388,138 | 792,125 | - | 388,138 | 792,125 | 1,180,263 | 79,212 | 2018 | 40 Years |
| Willis, TX | - | 406,466 | 925,047 | 7,287 | 406,466 | 932,334 | 1,338,800 | 98,966 | 2018 | 40 Years |
| Logan, UT | - | 914,515 | 2,774,985 | - | 914,515 | 2,774,985 | 3,689,500 | 300,623 | 2018 | 40 Years |
| Christiansburg, VA | - | 520,538 | 661,780 | - | 520,538 | 661,780 | 1,182,318 | 66,178 | 2018 | 40 Years |
| Fredericksburg, VA | - | 452,911 | 1,076,589 | - | 452,911 | 1,076,589 | 1,529,500 | 107,659 | 2018 | 40 Years |
| Glen Allen, VA | - | 1,112,948 | 837,542 | 11,280 | 1,112,948 | 848,822 | 1,961,770 | 99,644 | 2018 | 40 Years |
| Hampton, VA | - | 353,242 | 514,898 | - | 353,242 | 514,898 | 868,140 | 51,490 | 2018 | 40 Years |
| Louisa, VA | - | 538,246 | 2,179,541 | - | 538,246 | 2,179,541 | 2,717,787 | 233,458 | 2018 | 40 Years |
| Manassas, VA | - | 1,454,278 | - | - | 1,454,278 | - | 1,454,278 | - | 2018 | - |
| Virginia Beach, VA | - | 2,142,002 | 1,154,585 | - | 2,142,002 | 1,154,585 | 3,296,587 | 115,459 | 2018 | 40 Years |
| Virginia Beach, VA | - | 271,176 | 3,308,434 | - | 271,176 | 3,308,434 | 3,579,610 | 330,843 | 2018 | 40 Years |
| Everett, WA | - | 414,899 | 811,710 | - | 414,899 | 811,710 | 1,226,609 | 81,171 | 2018 | 40 Years |

F-46

# Agree Realty Corporation  
Schedule III - Real Estate and Accumulated Depreciation

December 31, 2022

| COLUMN A | COLUMN B | COLUMN C |  | COLUMN D | COLUMN E |  |  | COLUMN F | COLUMN G | COLUMN H |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Description | Encumbrance | Initial Cost |  | Costs Capitalized Subsequent to Acquisition | Gross Amount at Which Carried at |  |  | Accumulated Depreciation | Date of Acquisition | Life on Which Depreciation in Latest Income Statement is Computed (in years) |
|  |  | Land | Building and Improvements |  | Land | Close of Period Building and Improvements | Total |  |  |  |
| Bluefield, WV | - | 287,740 | 947,287 | 12,404 | 287,740 | 959,691 | 1,247,431 | 116,980 | 2018 | 40 Years |
| Green Bay, WI | - | 817,143 | 1,383,440 | - | 817,143 | 1,383,440 | 2,200,583 | 138,344 | 2018 | 40 Years |
| La Crosse, WI | - | 175,551 | 1,145,438 | - | 175,551 | 1,145,438 | 1,320,989 | 114,544 | 2018 | 40 Years |
| Madison, WI | - | 2,475,815 | 4,249,537 | (30,000) | 2,475,815 | 4,219,537 | 6,695,352 | 444,513 | 2018 | 40 Years |
| Mt. Pleasant, WI | - | 208,806 | 1,173,275 | (600) | 208,206 | 1,173,275 | 1,381,481 | 117,327 | 2018 | 40 Years |
| Schofield, WI | - | 533,503 | 1,071,930 | - | 533,503 | 1,071,930 | 1,605,433 | 107,193 | 2018 | 40 Years |
| Sheboygan, WI | - | 331,692 | 929,092 | - | 331,692 | 929,092 | 1,260,784 | 92,909 | 2018 | 40 Years |
| Athens, AL | - | 338,789 | 1,119,459 | (2,717) | 338,789 | 1,116,742 | 1,455,531 | 95,468 | 2019 | 40 Years |
| Attalla, AL | - | 289,473 | 928,717 | - | 289,473 | 928,717 | 1,218,190 | 79,328 | 2019 | 40 Years |
| Birmingham, AL | - | 1,400,530 | 859,880 | 9,278 | 1,400,530 | 869,158 | 2,269,688 | 68,394 | 2019 | 40 Years |
| Blountsville, AL | - | 262,412 | 816,070 | 19,389 | 262,412 | 835,459 | 1,097,871 | 69,726 | 2019 | 40 Years |
| Coffeeville, AL | - | 129,263 | 864,122 | - | 129,263 | 864,122 | 993,385 | 73,810 | 2019 | 40 Years |
| Phenix, AL | - | 292,234 | 1,280,705 | - | 292,234 | 1,280,705 | 1,572,939 | 122,734 | 2019 | 40 Years |
| Siles, AL | - | 383,742 | 1,351,195 | - | 383,742 | 1,351,195 | 1,734,937 | 115,405 | 2019 | 40 Years |
| Tuba City, AZ | - | 138,006 | 1,253,376 | 531 | 138,006 | 1,253,907 | 1,391,913 | 101,789 | 2019 | 40 Years |
| Searcy, AR | - | 851,561 | 5,582,069 | 71,485 | 851,561 | 5,653,554 | 6,505,115 | 541,585 | 2019 | 40 Years |
| Sheridan, AR | - | 124,667 | 1,070,754 | - | 124,667 | 1,070,754 | 1,195,421 | 91,327 | 2019 | 40 Years |
| Truamann, AR | - | 170,957 | 1,064,039 | - | 170,957 | 1,064,039 | 1,234,996 | 90,753 | 2019 | 40 Years |
| Visalia, CA | - | 2,552,353 | 6,994,518 | 284 | 2,552,353 | 6,994,802 | 9,547,155 | 626,609 | 2019 | 40 Years |
| Lakewood, CO | - | 3,021,260 | 6,125,185 | 57,272 | 3,021,260 | 6,182,457 | 9,203,717 | 461,196 | 2019 | 40 Years |
| Rifle, CO | - | 4,427,019 | 1,599,591 | - | 4,427,019 | 1,599,591 | 6,026,610 | 143,188 | 2019 | 40 Years |
| Danbury, CT | - | 1,095,933 | - | - | 1,095,933 | - | 1,095,933 | - | 2019 | - |
| Greenwich, CT | - | 16,350,193 | 3,076,568 | 6,540 | 16,350,193 | 3,083,108 | 19,433,301 | 278,851 | 2019 | 40 Years |
| Orange, CT | - | 6,881,022 | 10,519,218 | 38,848 | 6,881,022 | 10,558,066 | 17,439,088 | 855,853 | 2019 | 40 Years |
| Torrington, CT | - | 195,171 | 1,541,214 | 26,976 | 195,171 | 1,568,190 | 1,763,361 | 120,026 | 2019 | 40 Years |
| Bear, DE | - | 743,604 | - | 657 | 744,261 | - | 744,261 | - | 2019 | - |
| Wilmington, DE | - | 2,501,623 | 2,784,576 | - | 2,501,623 | 2,784,576 | 5,286,199 | 260,889 | 2019 | 40 Years |
| Apopka, FL | - | 646,629 | 1,215,458 | 10,730 | 646,629 | 1,226,188 | 1,872,817 | 122,619 | 2019 | 40 Years |
| Clearwater, FL | - | 497,216 | 1,027,192 | - | 497,216 | 1,027,192 | 1,524,408 | 96,132 | 2019 | 40 Years |
| Coosa, FL | - | 2,174,730 | - | - | 2,174,730 | - | 2,174,730 | - | 2019 | - |
| Lake Placid, FL | - | 255,339 | 1,059,913 | - | 255,339 | 1,059,913 | 1,315,252 | 83,910 | 2019 | 40 Years |
| Merritt Island, FL | - | 746,846 | 1,805,756 | - | 746,846 | 1,805,756 | 2,552,602 | 150,480 | 2019 | 40 Years |
| Orlando, FL | - | 751,265 | 2,089,523 | - | 751,265 | 2,089,523 | 2,840,788 | 194,478 | 2019 | 40 Years |
| Poinciana, FL | - | 608,450 | 1,073,714 | - | 608,450 | 1,073,714 | 1,682,164 | 85,002 | 2019 | 40 Years |
| Sanford, FL | - | 2,791,684 | 4,763,063 | 20,323 | 2,791,684 | 4,783,386 | 7,575,070 | 398,185 | 2019 | 40 Years |
| Tavares, FL | - | 736,113 | 1,849,694 | - | 736,113 | 1,849,694 | 2,585,807 | 173,414 | 2019 | 40 Years |
| Wauchaia, FL | - | 333,236 | 1,156,806 | - | 333,236 | 1,156,806 | 1,490,042 | 115,681 | 2019 | 40 Years |
| West Palm Beach, FL | - | 2,484,935 | 2,344,077 | - | 2,484,935 | 2,344,077 | 4,829,012 | 195,268 | 2019 | 40 Years |
| Brunswick, GA | - | 186,767 | 1,615,510 | 1,900 | 186,767 | 1,617,410 | 1,804,177 | 151,293 | 2019 | 40 Years |
| Columbus, GA | - | 336,125 | 2,497,365 | 32,240 | 336,125 | 2,529,605 | 2,865,730 | 199,925 | 2019 | 40 Years |
| Conyers, GA | - | 714,666 | 2,137,506 | - | 714,666 | 2,137,506 | 2,852,172 | 186,917 | 2019 | 40 Years |
| Dacula, GA | - | 1,280,484 | 1,716,312 | - | 1,280,484 | 1,716,312 | 2,996,796 | 164,420 | 2019 | 40 Years |
| Marietta, GA | - | 390,416 | 1,441,936 | - | 390,416 | 1,441,936 | 1,832,352 | 135,004 | 2019 | 40 Years |
| Tucker, GA | - | 374,268 | 1,652,522 | - | 374,268 | 1,652,522 | 2,026,790 | 158,307 | 2019 | 40 Years |
| Chubbuck, ID | - | 1,067,983 | 5,880,828 | - | 1,067,983 | 5,880,828 | 6,948,811 | 575,829 | 2019 | 40 Years |
| Chubbuck, ID | - | 185,310 | - | - | 185,310 | - | 185,310 | - | 2019 | - |
| Chubbuck, ID | - | 873,334 | 1,653,886 | - | 873,334 | 1,653,886 | 2,527,220 | 161,943 | 2019 | 40 Years |
| Edwardsville, IL | - | 449,741 | 1,202,041 | - | 449,741 | 1,202,041 | 1,651,782 | 112,563 | 2019 | 40 Years |
| Elk Grove Village, IL | - | 394,567 | 1,395,659 | 22,896 | 394,567 | 1,418,555 | 1,813,122 | 117,730 | 2019 | 40 Years |
| Evergreen Park, IL | - | 5,687,045 | 18,880,969 | - | 5,687,045 | 18,880,969 | 24,568,014 | 1,573,143 | 2019 | 40 Years |
| Freeport, IL | - | 92,295 | 1,537,120 | - | 92,295 | 1,537,120 | 1,629,415 | 124,824 | 2019 | 40 Years |
| Geneva, IL | - | 644,434 | 1,213,859 | - | 644,434 | 1,213,859 | 1,858,293 | 111,270 | 2019 | 40 Years |
| Greenville, IL | - | 135,642 | 1,026,006 | - | 135,642 | 1,026,006 | 1,161,648 | 79,088 | 2019 | 40 Years |
| Murphysboro, IL | - | 176,281 | 988,808 | - | 176,281 | 988,808 | 1,165,089 | 86,378 | 2019 | 40 Years |
| Rockford, IL | - | 814,666 | 1,719,410 | - | 814,666 | 1,719,410 | 2,534,076 | 139,635 | 2019 | 40 Years |
| Round Lake, IL | - | 325,722 | 2,669,132 | 5,756 | 325,722 | 2,674,888 | 3,000,610 | 202,281 | 2019 | 40 Years |
| Fishers, IN | - | 429,857 | 621,742 | - | 429,857 | 621,742 | 1,051,599 | 59,563 | 2019 | 40 Years |
| Gas City, IN | - | 504,378 | 1,341,890 | - | 504,378 | 1,341,890 | 1,846,268 | 131,393 | 2019 | 40 Years |
| Hammond, IN | - | 149,230 | 1,002,706 | - | 149,230 | 1,002,706 | 1,151,936 | 85,648 | 2019 | 40 Years |
| Kokomo, IN | - | 716,631 | 1,143,537 | - | 716,631 | 1,143,537 | 1,860,168 | 107,099 | 2019 | 40 Years |
| Marion, IN | - | 140,507 | 898,097 | 27,530 | 140,507 | 925,627 | 1,066,134 | 69,242 | 2019 | 40 Years |
| Westfield, IN | - | 594,597 | 1,260,563 | 26,425 | 594,597 | 1,286,988 | 1,881,585 | 121,465 | 2019 | 40 Years |
| Waterloo, IA | - | 369,497 | 1,265,450 | - | 369,497 | 1,265,450 | 1,634,947 | 105,382 | 2019 | 40 Years |
| Concordia, KS | - | 150,440 | 1,144,639 | 26,864 | 150,440 | 1,171,503 | 1,321,943 | 87,616 | 2019 | 40 Years |
| Parsons, KS | - | 203,953 | 1,073,554 | - | 203,953 | 1,073,554 | 1,277,507 | 102,762 | 2019 | 40 Years |
| Pratt, KS | - | 245,375 | 1,293,871 | - | 245,375 | 1,293,871 | 1,539,246 | 107,823 | 2019 | 40 Years |
| Wellington, KS | - | 95,197 | 1,090,333 | - | 95,197 | 1,090,333 | 1,185,530 | 88,523 | 2019 | 40 Years |
| Wichita, KS | - | 1,257,608 | 5,700,299 | 355 | 1,257,608 | 5,700,654 | 6,958,262 | 522,417 | 2019 | 40 Years |
| Coestwood, KY | - | 670,021 | 1,096,031 | 9,668 | 670,021 | 1,105,699 | 1,775,720 | 82,867 | 2019 | 40 Years |
| Georgetown, KY | - | 257,839 | 3,025,734 | 266,479 | 257,839 | 3,292,213 | 3,550,052 | 261,951 | 2019 | 40 Years |
| Grayson, KY | - | 241,857 | 1,155,603 | - | 241,857 | 1,155,603 | 1,397,460 | 96,300 | 2019 | 40 Years |
| Henderson, KY | - | 146,676 | 958,794 | - | 146,676 | 958,794 | 1,105,470 | 73,907 | 2019 | 40 Years |
| Leitchfield, KY | - | 303,830 | 1,062,711 | - | 303,830 | 1,062,711 | 1,366,541 | 79,703 | 2019 | 40 Years |

F-47

# Agree Realty Corporation  
Schedule III - Real Estate and Accumulated Depreciation

December 31, 2022

| COLUMN A | COLUMN B | COLUMN C |  | COLUMN D | COLUMN E |  |  | COLUMN F | COLUMN G | COLUMN H |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Description | Encumbrance | Initial Cost |  | Costs Capitalized Subsequent to Acquisition | Gross Amount at Which Carried at |  |  | Accumulated Depreciation | Date of Acquisition | Life on Which Depreciation in Latest Income Statement is Computed (in years) |
|  |  | Land | Building and Improvements |  | Land | Close of Period Building and Improvements | Total |  |  |  |
| Kentwood, LA | - | 327,392 | 638,214 | 20,612 | 327,392 | 658,826 | 986,218 | 64,553 | 2019 | 40 Years |
| Lake Charles, LA | - | 565,778 | 890,034 | (110,745) | 750,569 | 594,498 | 1,345,067 | 28,822 | 2019 | 40 Years |
| Bowie, MD | - | 2,840,009 | 4,474,364 | - | 2,840,009 | 4,474,364 | 7,314,373 | 391,396 | 2019 | 40 Years |
| Eldenburg, MD | - | 563,227 | 1,855,987 | 520 | 563,227 | 1,856,507 | 2,419,734 | 150,738 | 2019 | 40 Years |
| Brockton, MA | - | 3,254,807 | 8,504,236 | 105,278 | 3,254,807 | 8,609,514 | 11,864,321 | 643,068 | 2019 | 40 Years |
| Ipswich, MA | - | 467,109 | 967,282 | - | 467,109 | 967,282 | 1,434,391 | 84,542 | 2019 | 40 Years |
| Ipswich, MA | - | 2,606,990 | 3,414,474 | - | 2,606,990 | 3,414,474 | 6,021,464 | 298,755 | 2019 | 40 Years |
| Adrian, MI | - | 459,814 | 1,562,895 | 38,710 | 459,814 | 1,601,605 | 2,061,419 | 145,846 | 2019 | 40 Years |
| Allegan, MI | - | 184,466 | 1,239,762 | - | 184,466 | 1,239,762 | 1,424,228 | 108,479 | 2019 | 40 Years |
| Bloomfield Hills, MI | - | 1,160,912 | 4,181,635 | 1,543,046 | 1,160,912 | 5,724,681 | 6,885,593 | 440,221 | 2019 | 40 Years |
| Caro, MI | - | 183,318 | 1,328,630 | - | 183,318 | 1,328,630 | 1,511,948 | 107,905 | 2019 | 40 Years |
| Clare, MI | - | 153,379 | 1,412,383 | 11,127 | 153,379 | 1,423,510 | 1,576,889 | 109,629 | 2019 | 40 Years |
| Cooks, MI | - | 304,340 | 1,109,838 | 9,630 | 304,340 | 1,119,468 | 1,423,808 | 83,900 | 2019 | 40 Years |
| Crystal Falls, MI | - | 62,462 | 757,276 | - | 62,462 | 757,276 | 819,738 | 64,684 | 2019 | 40 Years |
| Harrison, MI | - | 59,984 | 900,901 | (25,895) | 59,984 | 875,006 | 934,990 | 65,794 | 2019 | 40 Years |
| Jackson, MI | - | 524,446 | 1,265,119 | - | 524,446 | 1,265,119 | 1,789,565 | 100,155 | 2019 | 40 Years |
| Monroe, MI | - | 501,688 | 2,651,440 | - | 501,688 | 2,651,440 | 3,153,128 | 248,374 | 2019 | 40 Years |
| Plymouth, MI | - | 580,459 | 1,043,474 | 47,200 | 580,459 | 1,090,674 | 1,671,133 | 101,759 | 2019 | 40 Years |
| Spalding, MI | - | 86,973 | 842,434 | - | 86,973 | 842,434 | 929,407 | 71,958 | 2019 | 40 Years |
| Walker, MI | - | 4,821,073 | 15,814,475 | 17,091 | 4,821,073 | 15,831,566 | 20,652,639 | 1,253,142 | 2019 | 40 Years |
| Lakeville, MN | - | 1,774,051 | 6,386,118 | 114,634 | 1,774,051 | 6,500,752 | 8,274,803 | 570,831 | 2019 | 40 Years |
| Longville, MN | - | 30,748 | 836,277 | - | 30,748 | 836,277 | 867,025 | 71,432 | 2019 | 40 Years |
| Watts Park, MN | - | 142,863 | 1,064,736 | - | 142,863 | 1,064,736 | 1,207,599 | 99,532 | 2019 | 40 Years |
| Bolton, MS | - | 172,890 | 831,005 | - | 172,890 | 831,005 | 1,003,895 | 70,982 | 2019 | 40 Years |
| Bruce, MS | - | 189,929 | 896,080 | - | 189,929 | 896,080 | 1,086,009 | 83,947 | 2019 | 40 Years |
| Columbus, MS | - | 123,385 | 898,226 | - | 123,385 | 898,226 | 1,021,611 | 84,149 | 2019 | 40 Years |
| Flowood, MS | - | 638,891 | 1,308,566 | - | 638,891 | 1,308,566 | 1,947,457 | 106,264 | 2019 | 40 Years |
| Houston, MS | - | 170,449 | 913,763 | - | 170,449 | 913,763 | 1,084,212 | 85,605 | 2019 | 40 Years |
| Jackson, MS | - | 393,954 | 1,169,374 | - | 393,954 | 1,169,374 | 1,563,328 | 94,959 | 2019 | 40 Years |
| Michigan City, MS | - | 336,323 | 963,447 | - | 336,323 | 963,447 | 1,299,770 | 90,263 | 2019 | 40 Years |
| Pontotoc, MS | - | 174,112 | 924,043 | - | 174,112 | 924,043 | 1,098,155 | 82,779 | 2019 | 40 Years |
| Turville, MS | - | 152,108 | 844,300 | - | 152,108 | 844,300 | 996,408 | 72,117 | 2019 | 40 Years |
| Fair Play, MO | - | 56,563 | 642,856 | - | 56,563 | 642,856 | 699,419 | 54,911 | 2019 | 40 Years |
| Florissant, MO | - | 1,394,072 | 2,210,514 | - | 1,394,072 | 2,210,514 | 3,604,586 | 207,173 | 2019 | 40 Years |
| Florissant, MO | - | 1,647,163 | 2,256,716 | - | 1,647,163 | 2,256,716 | 3,903,879 | 206,866 | 2019 | 40 Years |
| Groveespring, MO | - | 207,974 | 823,419 | - | 207,974 | 823,419 | 1,031,393 | 70,334 | 2019 | 40 Years |
| Hermitage, MO | - | 98,531 | 833,177 | 2,600 | 98,531 | 835,777 | 934,308 | 71,346 | 2019 | 40 Years |
| Madison, MO | - | 199,972 | 844,901 | - | 199,972 | 844,901 | 1,044,873 | 72,169 | 2019 | 40 Years |
| Oak Grove, MO | - | 275,293 | 1,000,150 | - | 275,293 | 1,000,150 | 1,275,443 | 87,513 | 2019 | 40 Years |
| Salem, MO | - | 153,713 | 1,085,494 | - | 153,713 | 1,085,494 | 1,239,207 | 88,130 | 2019 | 40 Years |
| South Fork, MO | - | 345,053 | 1,087,384 | - | 345,053 | 1,087,384 | 1,432,437 | 92,881 | 2019 | 40 Years |
| St. Louis, MO | - | 743,673 | 3,387,981 | - | 743,673 | 3,387,981 | 4,131,654 | 261,157 | 2019 | 40 Years |
| Manchester, NH | - | 1,486,550 | 2,419,269 | 12,678 | 1,486,550 | 2,431,947 | 3,918,497 | 192,793 | 2019 | 40 Years |
| Nashua, NH | - | 808,886 | 2,020,221 | 278 | 808,886 | 2,020,499 | 2,829,385 | 159,953 | 2019 | 40 Years |
| Lanoka Harbor, NJ | - | 1,355,335 | 1,052,415 | - | 1,355,335 | 1,052,415 | 2,407,750 | 85,382 | 2019 | 40 Years |
| Paramus, NJ | - | - | 6,224,221 | 599,410 | - | 6,823,631 | 6,823,631 | 634,377 | 2019 | 40 Years |
| San Ysidro, NM | - | 316,770 | 956,983 | - | 316,770 | 956,983 | 1,273,753 | 81,742 | 2019 | 40 Years |
| Hinsdale, NY | - | 353,602 | 905,350 | - | 353,602 | 905,350 | 1,258,952 | 77,332 | 2019 | 40 Years |
| Liverpool, NY | - | 1,697,114 | 3,355,641 | 24,323 | 1,697,114 | 3,379,964 | 5,077,078 | 253,345 | 2019 | 40 Years |
| Malone, NY | - | 413,667 | 1,035,771 | - | 413,667 | 1,035,771 | 1,449,438 | 96,926 | 2019 | 40 Years |
| Vestal, NY | - | 3,540,906 | 5,610,529 | 147,000 | 3,540,906 | 5,757,529 | 9,298,435 | 467,787 | 2019 | 40 Years |
| Columbus, NC | - | 423,026 | 1,070,992 | - | 423,026 | 1,070,992 | 1,494,018 | 86,945 | 2019 | 40 Years |
| Fayetteville, NC | - | 505,574 | 1,544,177 | - | 505,574 | 1,544,177 | 2,049,751 | 122,247 | 2019 | 40 Years |
| Hope Mills, NC | - | 1,522,142 | 7,906,676 | - | 1,522,142 | 7,906,676 | 9,428,818 | 658,765 | 2019 | 40 Years |
| Stallings, NC | - | 1,481,940 | - | - | 1,481,940 | - | 1,481,940 | - | 2019 | - |
| Sylva, NC | - | 450,055 | 1,351,631 | 19,487 | 450,055 | 1,371,118 | 1,821,173 | 102,712 | 2019 | 40 Years |
| Edgeley, ND | - | 193,509 | 944,881 | - | 193,509 | 944,881 | 1,138,390 | 82,677 | 2019 | 40 Years |
| Grand Forks, ND | - | 1,187,389 | 2,052,184 | - | 1,187,389 | 2,052,184 | 3,239,573 | 175,272 | 2019 | 40 Years |
| Williston, ND | - | 515,210 | 1,584,865 | - | 515,210 | 1,584,865 | 2,100,075 | 135,374 | 2019 | 40 Years |
| Batavia, OH | - | 601,071 | 1,125,756 | (7,363) | 595,681 | 1,123,783 | 1,719,464 | 100,952 | 2019 | 40 Years |
| Bellevue, OH | - | 186,215 | 1,343,783 | 8,491 | 186,215 | 1,352,274 | 1,538,489 | 101,368 | 2019 | 40 Years |
| Columbus, OH | - | 357,767 | 1,423,046 | - | 357,767 | 1,423,046 | 1,780,813 | 133,233 | 2019 | 40 Years |
| Conneaut, OH | - | 200,915 | 1,363,715 | 7,983 | 200,915 | 1,371,698 | 1,572,613 | 108,510 | 2019 | 40 Years |
| Hamilton, OH | - | 335,677 | 1,066,581 | - | 335,677 | 1,066,581 | 1,402,258 | 97,626 | 2019 | 40 Years |
| Heath, OH | - | 657,358 | 3,259,449 | 313,281 | 657,358 | 3,572,730 | 4,230,088 | 300,372 | 2019 | 40 Years |
| Kenton, OH | - | 191,968 | 1,290,534 | 7,723 | 191,968 | 1,298,257 | 1,490,225 | 100,010 | 2019 | 40 Years |
| Maumee, OH | - | 1,498,739 | 815,222 | 295 | 1,498,739 | 815,517 | 2,314,256 | 79,909 | 2019 | 40 Years |
| Oxford, OH | - | 912,241 | 2,566,991 | 25,001 | 912,241 | 2,591,992 | 3,504,233 | 246,162 | 2019 | 40 Years |
| West Chester, OH | - | 796,035 | 814,730 | 660 | 796,035 | 815,390 | 1,611,425 | 79,821 | 2019 | 40 Years |
| West Chester, OH | - | 395,924 | 1,173,848 | - | 395,924 | 1,173,848 | 1,569,772 | 112,377 | 2019 | 40 Years |
| Ada, OK | - | 336,304 | 1,234,870 | - | 336,304 | 1,234,870 | 1,571,174 | 97,761 | 2019 | 40 Years |
| Bartlesville, OK | - | 451,582 | 1,249,112 | - | 451,582 | 1,249,112 | 1,700,694 | 109,125 | 2019 | 40 Years |
| Bokoshe, OK | - | 47,725 | 797,175 | - | 47,725 | 797,175 | 844,900 | 69,462 | 2019 | 40 Years |

F-48

# Agree Realty Corporation  
Schedule III - Real Estate and Accumulated Depreciation

December 31, 2022

| COLUMN A | COLUMN B | COLUMN C |  | COLUMN D | COLUMN E |  |  | COLUMN F | COLUMN G | COLUMN H |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Description | Encumbrance | Initial Cost |  | Costs Capitalized Subsequent to Acquisition | Gross Amount at Which Carried at |  |  | Accumulated Depreciation | Date of Acquisition | Life on Which Depreciation in Latest Income Statement is Computed (in years) |
|  |  | Land | Building and Improvements |  | Land | Close of Period Building and Improvements | Total |  |  |  |
| Lawton, OK | - | 230,834 | 612,256 | - | 230,834 | 612,256 | 843,090 | 53,401 | 2019 | 40 Years |
| Whitefield, OK | - | 144,932 | 863,327 | - | 144,932 | 863,327 | 1,008,259 | 75,541 | 2019 | 40 Years |
| Cranberry Township, PA | - | 2,066,679 | 2,049,310 | - | 2,066,679 | 2,049,310 | 4,115,989 | 196,332 | 2019 | 40 Years |
| Ebensburg, PA | - | 551,162 | 2,023,064 | 5,689 | 551,162 | 2,028,753 | 2,579,915 | 189,686 | 2019 | 40 Years |
| Flourtown, PA | - | 1,342,409 | 2,229,147 | - | 1,342,409 | 2,229,147 | 3,571,556 | 218,255 | 2019 | 40 Years |
| Monaca, PA | - | 449,116 | 842,901 | - | 449,116 | 842,901 | 1,292,017 | 80,718 | 2019 | 40 Years |
| Natrona Heights, PA | - | 1,412,247 | 1,719,447 | - | 1,412,247 | 1,719,447 | 3,131,694 | 168,363 | 2019 | 40 Years |
| North Huntingdon, PA | - | 428,166 | 1,508,044 | - | 428,166 | 1,508,044 | 1,936,210 | 144,461 | 2019 | 40 Years |
| Oakdale, PA | - | 708,623 | 987,577 | 68,352 | 708,623 | 1,055,929 | 1,764,552 | 81,972 | 2019 | 40 Years |
| Philadelphia, PA | - | 1,891,985 | 20,799,223 | 211,964 | 1,891,985 | 21,011,187 | 22,903,172 | 1,934,638 | 2019 | 40 Years |
| Pittsburgh, PA | - | 1,251,674 | 3,842,592 | - | 1,251,674 | 3,842,592 | 5,094,266 | 312,131 | 2019 | 40 Years |
| Robinson Township, PA | - | 1,630,648 | 2,703,381 | - | 1,630,648 | 2,703,381 | 4,334,029 | 236,461 | 2019 | 40 Years |
| Titusville, PA | - | 877,651 | 2,568,060 | - | 877,651 | 2,568,060 | 3,445,711 | 229,998 | 2019 | 40 Years |
| West View, PA | - | 120,349 | 1,347,706 | - | 120,349 | 1,347,706 | 1,468,055 | 112,224 | 2019 | 40 Years |
| York, PA | - | 3,331,496 | 6,690,968 | 9,190 | 3,331,496 | 6,700,158 | 10,031,654 | 599,329 | 2019 | 40 Years |
| Columbia, SC | - | 2,783,934 | 13,228,453 | - | 2,783,934 | 13,228,453 | 16,012,387 | 1,267,600 | 2019 | 40 Years |
| Hampton, SC | - | 215,462 | 1,050,367 | - | 215,462 | 1,050,367 | 1,265,829 | 105,037 | 2019 | 40 Years |
| Myrtle Beach, SC | - | 1,371,226 | 2,752,440 | 503,611 | 1,371,226 | 3,256,051 | 4,627,277 | 302,738 | 2019 | 40 Years |
| Orangeburg, SC | - | 316,428 | 1,116,664 | - | 316,428 | 1,116,664 | 1,433,092 | 99,956 | 2019 | 40 Years |
| Kadoka, SD | - | 134,528 | 926,523 | - | 134,528 | 926,523 | 1,061,051 | 81,071 | 2019 | 40 Years |
| Thorn Hill, TN | - | 115,367 | 974,925 | - | 115,367 | 974,925 | 1,090,292 | 91,304 | 2019 | 40 Years |
| Woodbury, TN | - | 154,043 | 1,092,958 | - | 154,043 | 1,092,958 | 1,247,001 | 102,465 | 2019 | 40 Years |
| Burleson, TX | - | 1,396,753 | 3,312,794 | 13,864 | 1,396,753 | 3,326,658 | 4,723,411 | 249,413 | 2019 | 40 Years |
| Carrizo Springs, TX | - | 337,070 | 812,963 | 5,087 | 337,070 | 818,050 | 1,155,120 | 71,459 | 2019 | 40 Years |
| Garland, TX | - | 773,385 | 2,587,011 | - | 773,385 | 2,587,011 | 3,360,396 | 237,143 | 2019 | 40 Years |
| Kenedy, TX | - | 325,159 | 954,774 | 11,255 | 325,159 | 966,029 | 1,291,188 | 72,382 | 2019 | 40 Years |
| Laredo, TX | - | 1,117,403 | 2,152,573 | 48,118 | 1,117,403 | 2,200,691 | 3,318,094 | 194,343 | 2019 | 40 Years |
| Lewisville, TX | - | 2,347,993 | 5,271,935 | 4,154 | 2,347,993 | 5,276,089 | 7,624,082 | 516,216 | 2019 | 40 Years |
| Lubbock, TX | - | 1,420,820 | 1,858,395 | - | 1,420,820 | 1,858,395 | 3,279,215 | 181,968 | 2019 | 40 Years |
| Wailsea Falls, TX | - | 585,664 | 1,952,988 | - | 585,664 | 1,952,988 | 2,538,652 | 170,886 | 2019 | 40 Years |
| Wylie, TX | - | 686,154 | 1,623,684 | - | 686,154 | 1,623,684 | 2,309,838 | 155,543 | 2019 | 40 Years |
| Draper, UT | - | 1,344,025 | 3,321,208 | 23,553 | 1,344,025 | 3,344,761 | 4,688,786 | 250,710 | 2019 | 40 Years |
| Bristol, VA | - | 996,915 | 1,374,467 | - | 996,915 | 1,374,467 | 2,371,382 | 114,539 | 2019 | 40 Years |
| Gloucester, VA | - | 458,785 | 1,994,093 | - | 458,785 | 1,994,093 | 2,452,878 | 166,130 | 2019 | 40 Years |
| Hampton, VA | - | 3,549,928 | 6,096,218 | 107 | 3,549,928 | 6,096,325 | 9,646,253 | 495,077 | 2019 | 40 Years |
| Hampton, VA | - | 429,613 | 1,081,015 | - | 429,613 | 1,081,015 | 1,510,628 | 90,085 | 2019 | 40 Years |
| Hampton, VA | - | 744,520 | 1,249,355 | - | 744,520 | 1,249,355 | 1,995,875 | 104,113 | 2019 | 40 Years |
| Hampton, VA | - | 561,596 | 1,545,002 | - | 561,596 | 1,545,002 | 2,106,598 | 128,750 | 2019 | 40 Years |
| Newport News, VA | - | 12,618,320 | - | - | 12,618,320 | - | 12,618,320 | - | 2019 | - |
| Newport News, VA | - | 855,793 | 1,754,228 | - | 855,793 | 1,754,228 | 2,610,021 | 146,186 | 2019 | 40 Years |
| Poquoson, VA | - | 330,867 | 848,105 | 2,156 | 330,867 | 850,261 | 1,181,128 | 70,824 | 2019 | 40 Years |
| South Boston, VA | - | 490,590 | 2,637,385 | 15,414 | 490,590 | 2,652,799 | 3,143,389 | 209,853 | 2019 | 40 Years |
| Surry, VA | - | 685,233 | 994,788 | - | 685,233 | 994,788 | 1,680,021 | 82,899 | 2019 | 40 Years |
| Williamsburg, VA | - | 1,574,769 | 2,001,920 | (9,200) | 1,565,569 | 2,001,920 | 3,567,489 | 166,827 | 2019 | 40 Years |
| Williamsburg, VA | - | 675,861 | 1,098,464 | - | 675,861 | 1,098,464 | 1,774,325 | 91,539 | 2019 | 40 Years |
| Wytheville, VA | - | 206,660 | 1,248,178 | - | 206,660 | 1,248,178 | 1,454,838 | 93,613 | 2019 | 40 Years |
| Ephrata, WA | - | 368,492 | 4,821,470 | 18,383 | 368,492 | 4,839,853 | 5,208,345 | 372,861 | 2019 | 40 Years |
| Charleston, WV | - | 561,767 | - | - | 561,767 | - | 561,767 | - | 2019 | - |
| Ripley, WV | - | 1,042,204 | - | 20,422 | 1,062,626 | - | 1,062,626 | - | 2019 | - |
| Black River Falls, WI | - | 278,472 | 1,141,572 | 9,519 | 278,472 | 1,151,091 | 1,429,563 | 88,650 | 2019 | 40 Years |
| Lake Geneva, WI | - | 7,078,726 | - | - | 7,078,726 | - | 7,078,726 | - | 2019 | - |
| Menomonee Falls, WI | - | 3,518,493 | 12,020,248 | 12,918 | 3,518,493 | 12,033,166 | 15,551,659 | 1,077,182 | 2019 | 40 Years |
| Sun Prairie, WI | - | 2,864,563 | 7,215,614 | - | 2,864,563 | 7,215,614 | 10,080,177 | 586,070 | 2019 | 40 Years |
| West Milwaukee, WI | - | 783,260 | 3,055,907 | 16,402 | 783,260 | 3,072,309 | 3,855,569 | 236,539 | 2019 | 40 Years |
| Adger, AL | - | 189,119 | 1,222,891 | - | 189,119 | 1,222,891 | 1,412,010 | 78,978 | 2020 | 40 Years |
| Dothan, AL | - | 792,626 | 3,017,431 | (31,788) | 778,553 | 2,999,716 | 3,778,269 | 145,297 | 2020 | 40 Years |
| Enterprise, AL | - | 728,934 | 2,504,283 | 15,377 | 728,934 | 2,519,660 | 3,248,594 | 183,629 | 2020 | 40 Years |
| Lanett, AL | - | 597,615 | 2,264,102 | 128 | 597,615 | 2,264,230 | 2,861,845 | 132,056 | 2020 | 40 Years |
| Saraland, AL | - | 838,216 | 2,709,602 | 1,275 | 838,216 | 2,710,877 | 3,549,093 | 197,401 | 2020 | 40 Years |
| Sylacauga, AL | - | 2,181,806 | 9,940,930 | 4,330 | 2,181,806 | 9,945,260 | 12,127,066 | 642,057 | 2020 | 40 Years |
| Theodore, AL | - | 743,751 | 2,667,802 | - | 743,751 | 2,667,802 | 3,411,553 | 188,881 | 2020 | 40 Years |
| Altheimer, AR | - | 202,235 | 1,151,471 | - | 202,235 | 1,151,471 | 1,353,706 | 76,376 | 2020 | 40 Years |
| Benton, AR | - | 561,085 | 2,141,511 | 249,809 | 561,085 | 2,391,320 | 2,952,405 | 126,922 | 2020 | 40 Years |
| Benton, AR | - | 2,271,157 | 1,324,716 | 39,069 | 2,271,157 | 1,363,785 | 3,634,942 | 66,974 | 2020 | 40 Years |
| Bismarck, AR | - | 129,139 | 876,127 | - | 129,139 | 876,127 | 1,005,266 | 52,813 | 2020 | 40 Years |
| Centerton, AR | - | 502,391 | 2,152,058 | 249,808 | 502,391 | 2,401,866 | 2,904,257 | 131,977 | 2020 | 40 Years |
| Elaine, AR | - | 51,248 | 802,757 | - | 51,248 | 802,757 | 854,005 | 53,218 | 2020 | 40 Years |
| Jonesboro, AR | - | 477,565 | 942,703 | - | 477,565 | 942,703 | 1,420,268 | 52,973 | 2020 | 40 Years |
| Little Rock, AR | - | 136,550 | 638,605 | - | 136,550 | 638,605 | 775,155 | 42,516 | 2020 | 40 Years |
| Mayflower, AR | - | 708,465 | 448,741 | 80,635 | 708,465 | 529,376 | 1,237,841 | 26,051 | 2020 | 40 Years |
| Mena, AR | - | 1,459,039 | - | - | 1,459,039 | - | 1,459,039 | - | 2020 | - |
| Pine Bluff, AR | - | 195,689 | 1,102,338 | 3,250 | 195,689 | 1,105,588 | 1,301,277 | 75,899 | 2020 | 40 Years |
| Pine Bluff, AR | - | 279,293 | 1,290,094 | 7,236 | 279,293 | 1,297,330 | 1,576,623 | 85,720 | 2020 | 40 Years |

F-49

# Agree Realty Corporation  
Schedule III - Real Estate and Accumulated Depreciation

December 31, 2022

| COLUMN A | COLUMN B | COLUMN C |  | COLUMN D | COLUMN E |  |  | COLUMN F | COLUMN G | COLUMN H |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Description | Encumbrance | Initial Cost |  | Costs Capitalized Subsequent to Acquisition | Gross Amount at Which Carried at |  |  | Accumulated Depreciation | Date of Acquisition | Life on Which Depreciation in Latest Income Statement is Computed (in years) |
|  |  | Land | Building and Improvements |  | Land | Close of Period Building and Improvements | Total |  |  |  |
| Searcy, AR | - | 548,495 | 5,834,876 | - | 548,495 | 5,834,876 | 6,383,371 | 352,272 | 2020 | 40 Years |
| Sparkman, AR | - | 80,956 | 720,376 | - | 80,956 | 720,376 | 801,332 | 41,962 | 2020 | 40 Years |
| West Helena, AR | - | 93,907 | 885,680 | 21,923 | 93,907 | 907,603 | 1,001,510 | 59,068 | 2020 | 40 Years |
| Coolidge, AZ | - | 252,228 | 1,164,641 | 11,720 | 252,228 | 1,176,361 | 1,428,589 | 73,070 | 2020 | 40 Years |
| Maricopa, AZ | - | 761,177 | 1,600,925 | 11,257 | 761,177 | 1,612,182 | 2,373,359 | 83,864 | 2020 | 40 Years |
| Phoenix, AZ | - | 11,641,459 | 7,261,072 | - | 11,641,459 | 7,261,072 | 18,902,531 | 438,555 | 2020 | 40 Years |
| Tucson, AZ | - | 3,267,761 | 6,624,814 | 383,141 | 3,267,761 | 7,007,955 | 10,275,716 | 349,238 | 2020 | 40 Years |
| Yuma, AZ | - | 840,427 | 5,489,179 | 577 | 840,427 | 5,489,756 | 6,330,183 | 342,960 | 2020 | 40 Years |
| Yuma, AZ | - | - | 5,052,648 | 29,919 | - | 5,082,567 | 5,082,567 | 253,941 | 2020 | 40 Years |
| Antioch, CA | - | 3,369,667 | 6,952,571 | - | 3,369,667 | 6,952,571 | 10,322,238 | 405,468 | 2020 | 40 Years |
| Cal産後, CA | - | 937,091 | 22,274 | - | 959,365 | - | 959,365 | - | 2020 | - |
| Hawthorne, CA | - | 7,297,568 | 5,841,964 | 1,750 | 7,297,568 | 5,843,714 | 13,141,282 | 328,544 | 2020 | 40 Years |
| Napa, CA | - | 5,287,831 | 13,608,836 | 650 | 5,287,831 | 13,609,486 | 18,897,317 | 850,391 | 2020 | 40 Years |
| Palmdale, CA | - | 2,159,541 | 6,648,091 | 486 | 2,159,541 | 6,648,577 | 8,808,118 | 456,916 | 2020 | 40 Years |
| Quincy, CA | - | 315,559 | 1,597,973 | - | 315,559 | 1,597,973 | 1,913,532 | 109,611 | 2020 | 40 Years |
| Quincy, CA | - | 605,988 | 4,898,500 | - | 605,988 | 4,898,500 | 5,504,488 | 316,289 | 2020 | 40 Years |
| Rancho Cordova, CA | - | 10,668,451 | - | 27,033 | 10,695,484 | - | 10,695,484 | - | 2020 | - |
| San Francisco, CA | - | 7,234,677 | 748,185 | 19,918 | 7,234,677 | 768,103 | 8,002,780 | 39,820 | 2020 | 40 Years |
| Signal Hill, CA | - | 8,490,622 | 6,714,882 | - | 8,490,622 | 6,714,882 | 15,205,504 | 489,627 | 2020 | 40 Years |
| Stockton, CA | - | 961,910 | 3,310,275 | 16,203 | 961,910 | 3,326,478 | 4,288,388 | 166,220 | 2020 | 40 Years |
| Broomfield, CO | - | 708,881 | 965,675 | 7,993 | 708,881 | 973,668 | 1,682,549 | 48,633 | 2020 | 40 Years |
| Cortez, CO | - | 177,422 | 1,594,274 | 9,852 | 177,422 | 1,604,126 | 1,781,548 | 80,145 | 2020 | 40 Years |
| La Junta, CO | - | 187,988 | 823,735 | - | 187,988 | 823,735 | 1,011,723 | 56,382 | 2020 | 40 Years |
| Pueblo, CO | - | 235,805 | 1,568,540 | - | 235,805 | 1,568,540 | 1,804,345 | 98,034 | 2020 | 40 Years |
| Newington, CT | - | 403,932 | 1,915,897 | 51,469 | 403,932 | 1,967,366 | 2,371,298 | 135,980 | 2020 | 40 Years |
| Old Saybrook, CT | - | 443,801 | 3,497,920 | 74 | 443,801 | 3,497,994 | 3,941,795 | 196,613 | 2020 | 40 Years |
| Stafford Springs, CT | - | 1,230,939 | 7,075,776 | - | 1,230,939 | 7,075,776 | 8,306,715 | 398,012 | 2020 | 40 Years |
| Davenport, FL | - | 721,966 | 1,435,651 | - | 721,966 | 1,435,651 | 2,157,617 | 107,674 | 2020 | 40 Years |
| Deerfield Beach, FL | - | 1,963,542 | 514,491 | - | 1,963,542 | 514,491 | 2,478,033 | 30,982 | 2020 | 40 Years |
| Labelle, FL | - | 489,345 | 2,754,977 | - | 489,345 | 2,754,977 | 3,244,322 | 166,346 | 2020 | 40 Years |
| Lake Placid, FL | - | 2,060,445 | - | 15,405 | 2,075,850 | - | 2,075,850 | - | 2020 | - |
| Leesburg, FL | - | 708,698 | 541,993 | 7,993 | 708,698 | 549,986 | 1,258,684 | 27,449 | 2020 | 40 Years |
| Madison, FL | - | 171,150 | 619,660 | 6,567 | 171,150 | 626,227 | 797,377 | 41,562 | 2020 | 40 Years |
| Orlando, FL | - | 4,558,262 | 7,261,682 | - | 4,558,262 | 7,261,682 | 11,819,944 | 483,982 | 2020 | 40 Years |
| Panama City, FL | - | 830,080 | 856,243 | - | 830,080 | 856,243 | 1,686,323 | 64,211 | 2020 | 40 Years |
| Pensacola, FL | - | 379,154 | 969,254 | 7,993 | 379,154 | 977,247 | 1,356,401 | 48,812 | 2020 | 40 Years |
| Port St. Lucie, FL | - | 670,030 | 1,664,571 | - | 670,030 | 1,664,571 | 2,334,601 | 117,782 | 2020 | 40 Years |
| Punta Gorda, FL | - | 615,829 | 1,921,751 | - | 615,829 | 1,921,751 | 2,537,580 | 140,128 | 2020 | 40 Years |
| Sebring, FL | - | 1,986,013 | - | 15,406 | 2,001,419 | - | 2,001,419 | - | 2020 | - |
| Venice, FL | - | 1,301,719 | 1,233,030 | - | 1,301,719 | 1,233,030 | 2,534,749 | 92,477 | 2020 | 40 Years |
| Vero Beach, FL | - | 1,241,406 | 1,356,081 | 20 | 1,241,406 | 1,356,101 | 2,597,507 | 98,882 | 2020 | 40 Years |
| Albany, GA | - | 311,920 | 1,278,107 | - | 311,920 | 1,278,107 | 1,590,027 | 85,143 | 2020 | 40 Years |
| Albany, GA | - | 248,888 | 1,445,530 | - | 248,888 | 1,445,530 | 1,694,418 | 96,310 | 2020 | 40 Years |
| Albany, GA | - | 898,015 | 5,713,749 | - | 898,015 | 5,713,749 | 6,611,764 | 354,178 | 2020 | 40 Years |
| American, GA | - | 238,633 | 968,812 | - | 238,633 | 968,812 | 1,207,445 | 64,581 | 2020 | 40 Years |
| Cairo, GA | - | 237,315 | 1,040,643 | - | 237,315 | 1,040,643 | 1,277,958 | 78,048 | 2020 | 40 Years |
| Dallas, GA | - | 235,642 | 1,134,202 | 14,690 | 235,642 | 1,148,892 | 1,384,534 | 57,395 | 2020 | 40 Years |
| Doraville, GA | - | 533,512 | 1,709,449 | - | 533,512 | 1,709,449 | 2,242,961 | 92,595 | 2020 | 40 Years |
| Flowery Branch, GA | - | 1,253,091 | - | (2,000) | 1,251,091 | - | 1,251,091 | - | 2020 | - |
| Jesup, GA | - | 155,604 | 864,415 | - | 155,604 | 864,415 | 1,020,019 | 57,549 | 2020 | 40 Years |
| Lawrenceville, GA | - | 852,136 | 1,633,580 | - | 852,136 | 1,633,580 | 2,485,716 | 119,115 | 2020 | 40 Years |
| Lithia Springs, GA | - | 3,789,145 | 7,881,640 | - | 3,789,145 | 7,881,640 | 11,670,785 | 492,498 | 2020 | 40 Years |
| Moultrie, GA | - | 150,752 | 868,415 | - | 150,752 | 868,415 | 1,019,167 | 57,815 | 2020 | 40 Years |
| Quitman, GA | - | 407,661 | 1,125,845 | - | 407,661 | 1,125,845 | 1,533,506 | 84,438 | 2020 | 40 Years |
| Savannah, GA | - | 749,834 | 1,802,814 | 277 | 749,834 | 1,803,091 | 2,552,925 | 108,840 | 2020 | 40 Years |
| Savannah, GA | - | 3,502,278 | 4,132,018 | 429,779 | 3,502,278 | 4,561,797 | 8,064,075 | 262,267 | 2020 | 40 Years |
| George, IA | - | 283,785 | 942,785 | - | 283,785 | 942,785 | 1,226,570 | 70,708 | 2020 | 40 Years |
| Graettinger, IA | - | 154,261 | 933,746 | - | 154,261 | 933,746 | 1,088,007 | 70,030 | 2020 | 40 Years |
| Alexis, IL | - | 425,656 | 1,237,404 | - | 425,656 | 1,237,404 | 1,663,060 | 90,226 | 2020 | 40 Years |
| Chicago, IL | - | 2,780,722 | 2,305,569 | - | 2,780,722 | 2,305,569 | 5,086,291 | 129,562 | 2020 | 40 Years |
| Chicago, IL | - | 424,932 | 4,223,123 | - | 424,932 | 4,223,123 | 4,648,055 | 237,429 | 2020 | 40 Years |
| Chicago, IL | - | 596,808 | 1,415,648 | - | 596,808 | 1,415,648 | 2,012,456 | 79,510 | 2020 | 40 Years |
| Chicago, IL | - | 932,560 | 2,553,809 | 7,273 | 932,560 | 2,561,082 | 3,493,642 | 128,001 | 2020 | 40 Years |
| East Alton, IL | - | 113,457 | 1,422,573 | - | 113,457 | 1,422,573 | 1,536,030 | 88,813 | 2020 | 40 Years |
| Fairfield, IL | - | 198,833 | 1,180,242 | 6,975 | 198,833 | 1,187,217 | 1,386,050 | 61,747 | 2020 | 40 Years |
| Grayslake, IL | - | 478,307 | 1,131,061 | - | 478,307 | 1,131,061 | 1,609,368 | 72,922 | 2020 | 40 Years |
| Homewood, IL | - | 1,224,131 | 10,005,811 | 24,941 | 1,224,131 | 10,030,752 | 11,254,883 | 667,458 | 2020 | 40 Years |
| Kankakee, IL | - | 107,139 | 1,185,653 | - | 107,139 | 1,185,653 | 1,292,792 | 64,142 | 2020 | 40 Years |
| Manteno, IL | - | 71,681 | 1,213,963 | 37,938 | 71,681 | 1,251,901 | 1,323,582 | 62,356 | 2020 | 40 Years |
| Oswego, IL | - | 373,727 | 2,715,101 | 16,092 | 373,727 | 2,731,193 | 3,104,920 | 136,458 | 2020 | 40 Years |
| Rockton, IL | - | 367,154 | 1,526,399 | - | 367,154 | 1,526,399 | 1,893,553 | 76,320 | 2020 | 40 Years |
| Elkhart, IN | - | 173,631 | 972,629 | 7,992 | 173,631 | 980,621 | 1,154,252 | 48,981 | 2020 | 40 Years |
| Franklin, IN | - | 979,332 | 1,548,523 | 26,567 | 979,332 | 1,575,090 | 2,554,422 | 78,395 | 2020 | 40 Years |

F-50

# Agree Realty Corporation  
Schedule III - Real Estate and Accumulated Depreciation

December 31, 2022

| COLUMN A | COLUMN B | COLUMN C |  | COLUMN D | COLUMN E |  |  | COLUMN F | COLUMN G | COLUMN H |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Description | Encumbrance | Initial Cost |  | Costs Capitalized Subsequent to Acquisition | Gross Amount at Which Carried at |  |  | Accumulated Depreciation | Date of Acquisition | Life on Which Depreciation in Latest Income Statement is Computed (in years) |
|  |  | Land | Building and Improvements |  | Land | Close of Period Building and Improvements | Total |  |  |  |
| Indianapolis, IN | - | 251,149 | 1,550,984 | - | 251,149 | 1,550,984 | 1,802,133 | 80,763 | 2020 | 40 Years |
| Noblesville, IN | - | 259,582 | 1,611,431 | - | 259,582 | 1,611,431 | 1,871,013 | 117,502 | 2020 | 40 Years |
| Peru, IN | - | 202,110 | 1,501,247 | - | 202,110 | 1,501,247 | 1,703,357 | 93,828 | 2020 | 40 Years |
| Rockville, IN | - | 436,457 | 1,601,972 | (75,085) | 436,457 | 1,526,887 | 1,963,344 | 76,789 | 2020 | 40 Years |
| Derby, KS | - | 440,419 | 2,367,428 | - | 440,419 | 2,367,428 | 2,807,847 | 137,963 | 2020 | 40 Years |
| Independence, KS | - | 200,329 | 1,426,975 | (75,085) | 200,329 | 1,351,890 | 1,552,219 | 68,039 | 2020 | 40 Years |
| Shwanee, KS | - | 2,594,271 | 2,766,524 | - | 2,594,271 | 2,766,524 | 5,360,795 | 172,810 | 2020 | 40 Years |
| Wichita, KS | - | 834,377 | 2,338,612 | - | 834,377 | 2,338,612 | 3,172,989 | 146,065 | 2020 | 40 Years |
| Wichita, KS | - | 2,031,526 | 1,974,595 | - | 2,031,526 | 1,974,595 | 4,006,121 | 123,314 | 2020 | 40 Years |
| Wichita, KS | - | 1,194,939 | 2,062,020 | - | 1,194,939 | 2,062,020 | 3,256,959 | 128,778 | 2020 | 40 Years |
| Wichita, KS | - | 2,171,260 | 2,235,093 | - | 2,171,260 | 2,235,093 | 4,406,353 | 159,693 | 2020 | 40 Years |
| Louisa, KY | - | 242,391 | 1,177,975 | 6,975 | 242,391 | 1,184,950 | 1,427,341 | 64,112 | 2020 | 40 Years |
| Louisville, KY | - | 2,185,678 | 3,081,512 | 11,400 | 2,185,678 | 3,092,912 | 5,278,590 | 231,332 | 2020 | 40 Years |
| Louisville, KY | - | 208,346 | 621,820 | - | 208,346 | 621,820 | 830,166 | 37,509 | 2020 | 40 Years |
| Amite City, LA | - | 264,208 | 930,655 | 7,080 | 264,208 | 937,735 | 1,201,943 | 54,462 | 2020 | 40 Years |
| Baton Rouge, LA | - | 377,270 | 1,225,020 | - | 377,270 | 1,225,020 | 1,602,290 | 89,148 | 2020 | 40 Years |
| Denham Springs, LA | - | 398,006 | 1,484,613 | - | 398,006 | 1,484,613 | 1,882,619 | 86,578 | 2020 | 40 Years |
| Dequiney, LA | - | 288,426 | 969,725 | - | 288,426 | 969,725 | 1,258,151 | 58,588 | 2020 | 40 Years |
| Gibson, LA | - | 414,855 | 1,252,765 | 4,509 | 414,855 | 1,257,274 | 1,672,129 | 80,985 | 2020 | 40 Years |
| Gonzales, LA | - | 688,032 | 2,457,035 | 249,808 | 688,032 | 2,706,843 | 3,394,875 | 143,948 | 2020 | 40 Years |
| Hammond, LA | - | 367,215 | 2,243,382 | 249,809 | 367,215 | 2,493,191 | 2,860,406 | 123,093 | 2020 | 40 Years |
| Laplace, LA | - | 1,971,887 | 8,537,415 | - | 1,971,887 | 8,537,415 | 10,509,302 | 569,024 | 2020 | 40 Years |
| Springhill, LA | - | 438,507 | 2,335,035 | 14,125 | 438,507 | 2,349,160 | 2,787,667 | 117,715 | 2020 | 40 Years |
| Dorchester, MA | - | 4,815,990 | 923,841 | 13,041 | 4,815,990 | 936,882 | 5,752,872 | 48,664 | 2020 | 40 Years |
| East Wareham, MA | - | 590,052 | 1,525,359 | 8,780 | 590,052 | 1,534,139 | 2,124,191 | 79,744 | 2020 | 40 Years |
| Pittsfield, MA | - | 4,127,428 | - | - | 4,127,428 | - | 4,127,428 | - | 2020 | - |
| Pittsfield, MA | - | 5,087,945 | - | - | 5,087,945 | - | 5,087,945 | - | 2020 | - |
| Taunton, MA | - | 1,005,673 | 8,352,646 | - | 1,005,673 | 8,352,646 | 9,358,319 | 626,448 | 2020 | 40 Years |
| Aberdeen, MD | - | 758,616 | 1,712,723 | - | 758,616 | 1,712,723 | 2,471,339 | 128,454 | 2020 | 40 Years |
| Baltimore, MD | - | 3,031,879 | - | 36,709 | 3,068,588 | - | 3,068,588 | - | 2020 | - |
| Cockeysville, MD | - | 2,209,572 | - | 20,283 | 2,229,855 | - | 2,229,855 | - | 2020 | - |
| Hagerstown, MD | - | 1,009,779 | 1,285,162 | - | 1,009,779 | 1,285,162 | 2,204,941 | 93,710 | 2020 | 40 Years |
| Owings Mills, MD | - | 2,154,954 | 3,017,368 | 25,391 | 2,154,954 | 3,042,759 | 5,197,713 | 170,444 | 2020 | 40 Years |
| Augusta, ME | - | 1,627,817 | - | - | 1,627,817 | - | 1,627,817 | - | 2020 | - |
| Benton Harbor, MI | - | 385,355 | 1,090,802 | 7,992 | 385,355 | 1,098,794 | 1,484,149 | 54,890 | 2020 | 40 Years |
| Cedar Springs, MI | - | 346,310 | 1,907,232 | - | 346,310 | 1,907,232 | 2,253,542 | 95,362 | 2020 | 40 Years |
| Grayling, MI | - | 277,355 | 521,492 | 925 | 277,355 | 522,417 | 799,772 | 32,487 | 2020 | 40 Years |
| Hart, MI | - | 1,336,141 | 1,294,095 | - | 1,336,141 | 1,294,095 | 2,630,236 | 88,709 | 2020 | 40 Years |
| Holland, MI | - | 108,733 | 1,773,459 | - | 108,733 | 1,773,459 | 1,882,192 | 133,009 | 2020 | 40 Years |
| Howell, MI | - | 601,610 | 1,491,797 | 300 | 601,610 | 1,492,097 | 2,093,707 | 96,203 | 2020 | 40 Years |
| Jonesville, MI | - | 1,171,853 | 8,871,307 | - | 1,171,853 | 8,871,307 | 10,043,160 | 591,287 | 2020 | 40 Years |
| Monroe, MI | - | 1,315,043 | 9,131,436 | 1,000 | 1,315,043 | 9,132,436 | 10,447,479 | 513,419 | 2020 | 40 Years |
| Omer, MI | - | 165,126 | 828,778 | - | 165,126 | 828,778 | 993,904 | 60,431 | 2020 | 40 Years |
| Owosso, MI | - | 299,521 | 2,240,764 | - | 299,521 | 2,240,764 | 2,540,285 | 168,057 | 2020 | 40 Years |
| Taylor, MI | - | 338,092 | 1,017,043 | - | 338,092 | 1,017,043 | 1,355,135 | 57,042 | 2020 | 40 Years |
| Traverse City, MI | - | 337,556 | 3,980,018 | (48,115) | 337,556 | 3,931,903 | 4,269,459 | 212,978 | 2020 | 40 Years |
| Apple Valley, MN | - | 814,086 | 2,665,167 | - | 814,086 | 2,665,167 | 3,479,253 | 144,293 | 2020 | 40 Years |
| Blame, MN | - | 497,750 | 2,998,249 | 7,993 | 497,750 | 3,006,242 | 3,503,992 | 150,262 | 2020 | 40 Years |
| Chanhassen, MN | - | 1,664,359 | 11,222 | - | 1,675,581 | - | 1,675,581 | - | 2020 | - |
| Glyndon, MN | - | 131,845 | 853,575 | - | 131,845 | 853,575 | 985,420 | 64,017 | 2020 | 40 Years |
| Hill City, MN | - | 66,391 | 996,428 | - | 66,391 | 996,428 | 1,062,819 | 74,731 | 2020 | 40 Years |
| Holdingford, MN | - | 276,722 | 1,078,003 | - | 276,722 | 1,078,003 | 1,354,725 | 80,849 | 2020 | 40 Years |
| Orterail, MN | - | 209,929 | 897,043 | (1,000) | 209,929 | 897,043 | 1,105,972 | 67,277 | 2020 | 40 Years |
| Arnold, MO | - | 846,894 | 2,392,044 | 7,993 | 846,894 | 2,400,037 | 3,246,931 | 119,952 | 2020 | 40 Years |
| Leeten, MO | - | 192,069 | 1,109,261 | - | 192,069 | 1,109,261 | 1,301,330 | 71,640 | 2020 | 40 Years |
| Liberty, MO | - | 367,591 | 4,348,251 | - | 367,591 | 4,348,251 | 4,715,842 | 262,455 | 2020 | 40 Years |
| Northmoor, MO | - | 551,491 | 1,723,994 | - | 551,491 | 1,723,994 | 2,275,485 | 104,068 | 2020 | 40 Years |
| Platte City, MO | - | 766,613 | 2,501,154 | 21,647 | 766,613 | 2,522,801 | 3,289,414 | 125,866 | 2020 | 40 Years |
| Richmond Heights, MO | - | 3,305,260 | 2,531,065 | - | 3,305,260 | 2,531,065 | 5,836,325 | 158,192 | 2020 | 40 Years |
| Sheldon, MO | - | 168,799 | 1,017,992 | - | 168,799 | 1,017,992 | 1,186,791 | 65,745 | 2020 | 40 Years |
| Thayer, MO | - | 685,788 | 1,968,043 | 29,506 | 685,788 | 1,997,349 | 2,683,337 | 131,660 | 2020 | 40 Years |
| Union, MO | - | 270,233 | 1,041,690 | - | 270,233 | 1,041,690 | 1,311,923 | 62,872 | 2020 | 40 Years |
| Brandon, MS | - | 526,657 | 1,575,241 | - | 526,657 | 1,575,241 | 2,101,898 | 88,493 | 2020 | 40 Years |
| Flowood, MS | - | 1,625,494 | 6,417,821 | 7,430 | 1,625,494 | 6,425,251 | 8,050,745 | 410,091 | 2020 | 40 Years |
| Flowood, MS | - | 759,912 | 2,383,348 | - | 759,912 | 2,383,348 | 3,143,260 | 133,975 | 2020 | 40 Years |
| Gore Springs, MS | - | 188,141 | 951,645 | 48,115 | 188,141 | 999,760 | 1,187,901 | 65,463 | 2020 | 40 Years |
| Greenwood, MS | - | 150,855 | 903,459 | - | 150,855 | 903,459 | 1,054,314 | 59,842 | 2020 | 40 Years |
| Greenwood, MS | - | 137,312 | 1,154,001 | - | 137,312 | 1,154,001 | 1,291,313 | 71,962 | 2020 | 40 Years |
| Grenada, MS | - | 187,855 | 947,888 | - | 187,855 | 947,888 | 1,135,743 | 62,804 | 2020 | 40 Years |
| Gulfport, MS | - | 597,617 | 2,692,177 | 1,275 | 597,617 | 2,693,452 | 3,291,069 | 196,109 | 2020 | 40 Years |
| Madison, MS | - | 1,437,048 | 6,194,546 | - | 1,437,048 | 6,194,546 | 7,631,594 | 348,376 | 2020 | 40 Years |
| Oxford, MS | - | 547,606 | 993,807 | 7,992 | 547,606 | 1,001,799 | 1,549,405 | 50,040 | 2020 | 40 Years |
| Southaven, MS | - | 259,300 | 864,055 | 21,464 | 259,300 | 885,519 | 1,144,819 | 51,145 | 2020 | 40 Years |

F-51

# Agree Realty Corporation  
Schedule III - Real Estate and Accumulated Depreciation

December 31, 2022

| COLUMN A | COLUMN B | COLUMN C |  | COLUMN D | COLUMN E |  |  | COLUMN F | COLUMN G | COLUMN H |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Description | Encumbrance | Initial Cost |  | Costs Capitalized Subsequent to Acquisition | Gross Amount at Which Carried at |  |  | Accumulated Depreciation | Date of Acquisition | Life on Which Depreciation in Latest Income Statement is Computed (in years) |
|  |  | Land | Building and Improvements |  | Land | Close of Period Building and Improvements | Total |  |  |  |
| Wiggins, MS | - | 639,466 | 2,563,263 | 128 | 639,466 | 2,563,391 | 3,202,857 | 149,507 | 2020 | 40 Years |
| Asheville, NC | - | 5,132,913 | - | 17,171 | 5,150,084 | - | 5,150,084 | - | 2020 | - |
| Atlantic Beach, NC | - | 261,338 | 1,156,375 | - | 261,338 | 1,156,375 | 1,417,713 | 67,362 | 2020 | 40 Years |
| Beaufort, NC | - | 375,437 | 1,417,587 | - | 375,437 | 1,417,587 | 1,793,024 | 82,600 | 2020 | 40 Years |
| Boone, NC | - | 4,795,569 | 9,543,185 | 31,453 | 4,795,569 | 9,574,638 | 14,370,207 | 696,140 | 2020 | 40 Years |
| Boston, NC | - | 209,947 | 1,186,030 | - | 209,947 | 1,186,030 | 1,395,977 | 69,092 | 2020 | 40 Years |
| Cary, NC | - | 253,081 | 1,018,159 | - | 253,081 | 1,018,159 | 1,271,240 | 60,005 | 2020 | 40 Years |
| Chapel Hill, NC | - | 22,437,345 | - | (788,369) | 21,648,976 | - | 21,648,976 | - | 2020 | - |
| Charlotte, NC | - | 978,304 | 1,328,283 | - | 978,304 | 1,328,283 | 2,306,587 | 91,206 | 2020 | 40 Years |
| Concord, NC | - | 952,393 | 1,398,319 | - | 952,393 | 1,398,319 | 2,350,712 | 99,048 | 2020 | 40 Years |
| Dallas, NC | - | 309,847 | 1,008,936 | - | 309,847 | 1,008,936 | 1,318,783 | 62,973 | 2020 | 40 Years |
| Durham, NC | - | 229,232 | 1,169,836 | - | 229,232 | 1,169,836 | 1,399,068 | 68,148 | 2020 | 40 Years |
| Elkin, NC | - | 292,234 | 1,884,674 | 10,255 | 292,234 | 1,884,929 | 2,187,163 | 94,682 | 2020 | 40 Years |
| Elm City, NC | - | 447,081 | 1,401,379 | - | 447,081 | 1,401,379 | 1,848,460 | 81,654 | 2020 | 40 Years |
| Emerald Isle, NC | - | 316,187 | 1,125,842 | - | 316,187 | 1,125,842 | 1,442,029 | 65,581 | 2020 | 40 Years |
| Fuquay-Varina, NC | - | 4,398,922 | 10,142,102 | 30,452 | 4,398,922 | 10,172,554 | 14,571,476 | 739,909 | 2020 | 40 Years |
| Garner, NC | - | 216,566 | 1,170,660 | - | 216,566 | 1,170,660 | 1,387,226 | 68,196 | 2020 | 40 Years |
| Goldsboro, NC | - | 246,160 | 1,227,984 | - | 246,160 | 1,227,984 | 1,474,144 | 71,540 | 2020 | 40 Years |
| Goldsboro, NC | - | 243,355 | 1,135,304 | - | 243,355 | 1,135,304 | 1,378,659 | 66,133 | 2020 | 40 Years |
| Greensboro, NC | - | 272,962 | 1,126,017 | - | 272,962 | 1,126,017 | 1,398,979 | 65,592 | 2020 | 40 Years |
| Greenville, NC | - | 161,533 | 1,095,964 | - | 161,533 | 1,095,964 | 1,257,497 | 63,839 | 2020 | 40 Years |
| Harkers Island, NC | - | 964,627 | 2,109,360 | - | 964,627 | 2,109,360 | 3,073,987 | 123,046 | 2020 | 40 Years |
| Jacksonville, NC | - | 405,135 | 1,122,908 | 21,707 | 405,135 | 1,144,615 | 1,549,750 | 65,526 | 2020 | 40 Years |
| Jacksonville, NC | - | 3,213,710 | 10,021,579 | - | 3,213,710 | 10,021,579 | 13,235,289 | 563,567 | 2020 | 40 Years |
| Jacksonville, NC | - | 295,296 | 1,426,015 | 22,196 | 295,296 | 1,448,211 | 1,743,507 | 71,956 | 2020 | 40 Years |
| Kinston, NC | - | 358,915 | 1,016,305 | - | 358,915 | 1,016,305 | 1,375,220 | 59,284 | 2020 | 40 Years |
| Knott Island, NC | - | 129,285 | 1,232,265 | - | 129,285 | 1,232,265 | 1,361,550 | 71,882 | 2020 | 40 Years |
| Morehead City, NC | - | 201,436 | 934,453 | - | 201,436 | 934,453 | 1,135,889 | 54,510 | 2020 | 40 Years |
| Randleman, NC | - | 1,368,987 | 8,954,905 | 30,452 | 1,368,987 | 8,985,357 | 10,354,344 | 653,342 | 2020 | 40 Years |
| Randleman, NC | - | 1,834,106 | - | 19,174 | 1,853,280 | - | 1,853,280 | - | 2020 | - |
| Rocky Mount, NC | - | 305,766 | 1,114,117 | - | 305,766 | 1,114,117 | 1,419,883 | 64,990 | 2020 | 40 Years |
| Rocky Mount, NC | - | 206,675 | 960,873 | - | 206,675 | 960,873 | 1,167,548 | 56,051 | 2020 | 40 Years |
| Salisbury, NC | - | 990,303 | 1,019,025 | 7,993 | 990,303 | 1,027,018 | 2,017,321 | 51,301 | 2020 | 40 Years |
| Salter Path, NC | - | 245,172 | 1,012,413 | - | 245,172 | 1,012,413 | 1,257,585 | 59,057 | 2020 | 40 Years |
| Stratford, NC | - | 270,560 | 1,201,146 | - | 270,560 | 1,201,146 | 1,471,706 | 70,067 | 2020 | 40 Years |
| Sylva, NC | - | 1,776,968 | 12,026,284 | 6,069 | 1,776,968 | 12,032,353 | 13,809,321 | 827,000 | 2020 | 40 Years |
| Waves, NC | - | 320,928 | 1,092,703 | - | 320,928 | 1,092,703 | 1,413,631 | 63,741 | 2020 | 40 Years |
| Washaw, NC | - | 679,943 | 2,377,641 | 430 | 679,943 | 2,378,071 | 3,058,014 | 128,723 | 2020 | 40 Years |
| Winston Salem, NC | - | 232,299 | 1,069,191 | 663 | 232,962 | 1,069,191 | 1,302,153 | 62,369 | 2020 | 40 Years |
| Winston-Salem, NC | - | 282,142 | 1,316,279 | 12,095 | 282,142 | 1,328,374 | 1,610,516 | 66,343 | 2020 | 40 Years |
| Winterville, NC | - | 312,123 | 1,271,222 | - | 312,123 | 1,271,222 | 1,583,345 | 74,155 | 2020 | 40 Years |
| Winston, ND | - | 346,030 | 3,299,205 | 11,400 | 346,030 | 3,310,605 | 3,656,635 | 227,051 | 2020 | 40 Years |
| Lebanon, NH | - | 694,609 | 3,892,685 | 61,494 | 694,609 | 3,954,179 | 4,648,788 | 261,449 | 2020 | 40 Years |
| Budd Lake, NJ | - | 2,771,964 | - | 20,750 | 2,792,714 | - | 2,792,714 | - | 2020 | - |
| Fairfield, NJ | - | 2,358,323 | - | 24,454 | 2,382,777 | - | 2,382,777 | - | 2020 | - |
| Paterson, NJ | - | - | - | - | - | - | - | - | 2020 | - |
| Clovis, NM | - | 74,256 | 943,641 | 11,851 | 74,256 | 955,492 | 1,029,748 | 49,646 | 2020 | 40 Years |
| Albany, NY | - | 539,308 | 1,123,766 | - | 539,308 | 1,123,766 | 1,663,074 | 65,444 | 2020 | 40 Years |
| Beau Point, NY | - | 49,293 | 980,218 | (53,367) | 49,293 | 926,851 | 976,144 | 59,551 | 2020 | 40 Years |
| Candor, NY | - | 271,132 | 1,012,522 | (53,367) | 271,132 | 959,155 | 1,230,287 | 61,603 | 2020 | 40 Years |
| Conklin, NY | - | 247,429 | 939,529 | (53,367) | 247,429 | 886,162 | 1,133,591 | 57,041 | 2020 | 40 Years |
| Greene, NY | - | 449,997 | 1,173,666 | - | 449,997 | 1,173,666 | 1,623,663 | 73,342 | 2020 | 40 Years |
| Hamburg, NY | - | 526,596 | 561,841 | 4,891 | 526,596 | 566,732 | 1,093,328 | 28,306 | 2020 | 40 Years |
| Manonville, NY | - | 222,228 | 1,059,364 | - | 222,228 | 1,059,364 | 1,281,592 | 66,199 | 2020 | 40 Years |
| Medford, NY | - | 1,211,908 | 3,751,279 | 74 | 1,211,908 | 3,751,353 | 4,963,261 | 210,865 | 2020 | 40 Years |
| Mount Upton, NY | - | 152,379 | 918,162 | - | 152,379 | 918,162 | 1,070,541 | 57,385 | 2020 | 40 Years |
| Olean, NY | - | 1,224,360 | 12,197,768 | 181,275 | 1,224,360 | 12,379,043 | 13,603,403 | 850,392 | 2020 | 40 Years |
| Pompey, NY | - | 774,544 | 1,437,312 | - | 774,544 | 1,437,312 | 2,211,856 | 89,832 | 2020 | 40 Years |
| Ripley, NY | - | 110,279 | 756,748 | - | 110,279 | 756,748 | 867,027 | 47,297 | 2020 | 40 Years |
| Rochester, NY | - | 2,391,104 | 13,146,442 | 560 | 2,391,104 | 13,147,002 | 15,538,106 | 739,296 | 2020 | 40 Years |
| Syracuse, NY | - | 1,432,858 | 6,115,247 | - | 1,432,858 | 6,115,247 | 7,548,105 | 420,209 | 2020 | 40 Years |
| Wainscott, NY | - | 4,544,060 | 4,084,794 | - | 4,544,060 | 4,084,794 | 8,628,854 | 280,696 | 2020 | 40 Years |
| Watertown, NY | - | 523,013 | 1,323,771 | 17,365 | 523,013 | 1,341,136 | 1,864,149 | 74,746 | 2020 | 40 Years |
| Boardman, OH | - | 483,754 | 1,817,047 | - | 483,754 | 1,817,047 | 2,300,801 | 109,720 | 2020 | 40 Years |
| Carrollton, OH | - | 251,046 | 1,593,367 | - | 251,046 | 1,593,367 | 1,844,413 | 109,299 | 2020 | 40 Years |
| Chillicothe, OH | - | 760,959 | 10,507,546 | - | 760,959 | 10,507,546 | 11,268,505 | 722,222 | 2020 | 40 Years |
| Cincinnati, OH | - | 381,550 | 1,651,643 | - | 381,550 | 1,651,643 | 2,033,193 | 99,727 | 2020 | 40 Years |
| Columbus, OH | - | 1,689,259 | 6,937,214 | - | 1,689,259 | 6,937,214 | 8,626,473 | 463,243 | 2020 | 40 Years |
| Defiance, OH | - | 127,517 | 1,407,734 | (75,085) | 127,517 | 1,332,649 | 1,460,166 | 67,077 | 2020 | 40 Years |
| Dunkirk, OH | - | 230,958 | 1,069,772 | 4,508 | 230,958 | 1,074,280 | 1,305,238 | 69,213 | 2020 | 40 Years |
| Hudson, OH | - | 548,279 | 763,934 | 4,891 | 548,279 | 768,825 | 1,317,104 | 38,411 | 2020 | 40 Years |
| Mason, OH | - | 4,470,714 | 11,479,943 | 7,630 | 4,470,714 | 11,487,573 | 15,958,287 | 669,829 | 2020 | 40 Years |
| Massillon, OH | - | 118,153 | 1,177,205 | 7,992 | 118,153 | 1,185,197 | 1,303,350 | 59,210 | 2020 | 40 Years |

F-52

# Agree Realty Corporation  
Schedule III - Real Estate and Accumulated Depreciation

December 31, 2022

| COLUMN A | COLUMN B | COLUMN C |  | COLUMN D | COLUMN E |  |  | COLUMN F | COLUMN G | COLUMN H |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Description | Encumbrance | Initial Cost |  | Costs Capitalized Subsequent to Acquisition | Gross Amount at Which Carried at |  |  | Accumulated Depreciation | Date of Acquisition | Life on Which Depreciation in Latest Income Statement is Computed (in years) |
|  |  | Land | Building and Improvements |  | Land | Close of Period Building and Improvements | Total |  |  |  |
| Mayfield Heights, OH | - | 696,965 | 987,268 | 4,891 | 696,965 | 992,159 | 1,689,124 | 49,577 | 2020 | 40 Years |
| Oregon, OH | - | 4,915,676 | 11,980,299 | - | 4,915,676 | 11,980,299 | 16,895,975 | 648,791 | 2020 | 40 Years |
| Parma, OH | - | 1,292,437 | 9,410 | (1) | 1,301,846 | - | 1,301,846 | - | 2020 | - |
| Toledo, OH | - | 8,645,091 | 30,638 | - | 8,675,729 | - | 8,675,729 | - | 2020 | - |
| Toledo, OH | - | 4,950,900 | 8,979,618 | - | 4,950,900 | 8,979,618 | 13,950,518 | 486,333 | 2020 | 40 Years |
| Westerville, OH | - | 946,988 | 1,786,197 | 4,891 | 946,988 | 1,791,088 | 2,738,076 | 89,524 | 2020 | 40 Years |
| Westerville, OH | - | 690,653 | 1,402,190 | 832,471 | 690,653 | 2,234,661 | 2,925,314 | 105,068 | 2020 | 40 Years |
| Checotah, OK | - | 151,906 | 862,730 | 11,275 | 151,906 | 874,005 | 1,025,911 | 59,849 | 2020 | 40 Years |
| Elk City, OK | - | 507,204 | 3,969,937 | - | 507,204 | 3,969,937 | 4,477,141 | 247,989 | 2020 | 40 Years |
| Moore, OK | - | 1,649,938 | 1,480,239 | 7,993 | 1,649,938 | 1,488,232 | 3,138,170 | 74,362 | 2020 | 40 Years |
| Oklahoma City, OK | - | 356,795 | 1,349,469 | - | 356,795 | 1,349,469 | 1,706,264 | 81,471 | 2020 | 40 Years |
| Eugene, OR | - | 4,253,602 | 7,543,456 | - | 4,253,602 | 7,543,456 | 11,797,058 | 424,225 | 2020 | 40 Years |
| Seaside, OR | - | 376,612 | 5,093,532 | 2,615 | 376,612 | 5,096,147 | 5,472,759 | 318,302 | 2020 | 40 Years |
| Bristol, PA | - | 1,201,361 | 9,382 | - | 1,210,743 | - | 1,210,743 | - | 2020 | - |
| Lawrence Township, PA | - | 225,955 | 1,552,979 | 16,800 | 225,955 | 1,569,779 | 1,795,734 | 101,417 | 2020 | 40 Years |
| Nescopeck, PA | - | 428,452 | 1,362,404 | - | 428,452 | 1,362,404 | 1,790,856 | 82,312 | 2020 | 40 Years |
| New Milford, PA | - | 206,824 | 1,139,407 | 4,509 | 206,824 | 1,143,916 | 1,350,740 | 73,710 | 2020 | 40 Years |
| Orangeville, PA | - | 201,441 | 1,065,583 | - | 201,441 | 1,065,583 | 1,267,024 | 59,939 | 2020 | 40 Years |
| Port Trevorion, PA | - | 143,540 | 955,027 | 4,508 | 143,540 | 959,535 | 1,103,075 | 61,802 | 2020 | 40 Years |
| Tobyhanna, PA | - | 181,003 | 1,066,380 | 4,509 | 181,003 | 1,070,889 | 1,251,892 | 68,994 | 2020 | 40 Years |
| Wellsboro, PA | - | 165,062 | 1,091,790 | - | 165,062 | 1,091,790 | 1,256,852 | 54,589 | 2020 | 40 Years |
| Whitehall, PA | - | 1,139,318 | 2,964,839 | 526,241 | 1,139,318 | 3,491,080 | 4,630,398 | 265,327 | 2020 | 40 Years |
| Chapin, SC | - | 237,432 | 1,540,336 | - | 237,432 | 1,540,336 | 1,777,768 | 92,932 | 2020 | 40 Years |
| Clemson, SC | - | 501,288 | 1,898,545 | 6,845 | 501,288 | 1,905,390 | 2,406,678 | 126,763 | 2020 | 40 Years |
| Columbia, SC | - | 1,233,052 | 5,532,637 | - | 1,233,052 | 5,532,637 | 6,765,689 | 380,129 | 2020 | 40 Years |
| Columbia, SC | - | 354,953 | 1,670,857 | - | 354,953 | 1,670,857 | 2,025,810 | 93,913 | 2020 | 40 Years |
| Greer, SC | - | 426,062 | 1,800,058 | 29,426 | 426,062 | 1,829,484 | 2,255,546 | 131,708 | 2020 | 40 Years |
| Irme, SC | - | 274,327 | 729,177 | - | 274,327 | 729,177 | 1,003,504 | 41,016 | 2020 | 40 Years |
| Myrtle Beach, SC | - | 858,941 | 1,377,893 | - | 858,941 | 1,377,893 | 2,236,834 | 100,471 | 2020 | 40 Years |
| Myrtle Beach, SC | - | 389,784 | 915,150 | 7,993 | 389,784 | 923,143 | 1,312,927 | 46,107 | 2020 | 40 Years |
| Pageland, SC | - | 305,018 | 2,185,114 | 24,897 | 305,018 | 2,210,011 | 2,515,029 | 114,748 | 2020 | 40 Years |
| Vermilion, SD | - | 182,981 | 1,352,667 | 186,311 | 182,981 | 1,538,978 | 1,721,959 | 99,998 | 2020 | 40 Years |
| Yankton, SD | - | 197,328 | 985,756 | 7,993 | 197,328 | 993,749 | 1,191,077 | 49,637 | 2020 | 40 Years |
| Cleveland, TN | - | 1,060,966 | 1,508,917 | - | 1,060,966 | 1,508,917 | 2,569,883 | 110,025 | 2020 | 40 Years |
| Henderson, TN | - | 109,252 | 705,187 | - | 109,252 | 705,187 | 814,439 | 39,613 | 2020 | 40 Years |
| Kimball, TN | - | 1,509,366 | 11,782,512 | - | 1,509,366 | 11,782,512 | 13,291,878 | 736,194 | 2020 | 40 Years |
| Knoxville, TN | - | 4,110,394 | 12,554,772 | 865 | 4,110,394 | 12,555,637 | 16,666,031 | 784,548 | 2020 | 40 Years |
| Knoxville, TN | - | 210,544 | 1,396,261 | - | 210,544 | 1,396,261 | 1,606,805 | 78,421 | 2020 | 40 Years |
| Lakeland, TN | - | 237,682 | 795,446 | - | 237,682 | 795,446 | 1,033,128 | 44,690 | 2020 | 40 Years |
| Nashville, TN | - | 556,406 | 980,902 | - | 556,406 | 980,902 | 1,537,308 | 69,389 | 2020 | 40 Years |
| Nashville, TN | - | 355,577 | 1,331,745 | - | 355,577 | 1,331,745 | 1,687,322 | 80,400 | 2020 | 40 Years |
| Seymour, TN | - | 187,929 | 1,302,250 | - | 187,929 | 1,302,250 | 1,490,179 | 78,598 | 2020 | 40 Years |
| Tullahoma, TN | - | 1,206,870 | 9,840,853 | 12,758 | 1,206,870 | 9,853,611 | 11,060,481 | 513,087 | 2020 | 40 Years |
| Belton, TX | - | 587,479 | 2,228,889 | - | 587,479 | 2,228,889 | 2,816,368 | 120,658 | 2020 | 40 Years |
| Comanche, TX | - | 93,935 | 1,213,190 | - | 93,935 | 1,213,190 | 1,307,125 | 90,989 | 2020 | 40 Years |
| Conroe, TX | - | 1,227,703 | - | 4,880 | 1,232,583 | - | 1,232,583 | - | 2020 | - |
| Converse, TX | - | 1,425,000 | 471,349 | - | 1,425,000 | 471,349 | 1,896,349 | 28,307 | 2020 | 40 Years |
| Converse, TX | - | 200,802 | 1,642,854 | 8,674 | 200,802 | 1,651,528 | 1,852,330 | 85,796 | 2020 | 40 Years |
| Cuero, TX | - | 361,553 | 2,937,261 | - | 361,553 | 2,937,261 | 3,298,814 | 165,165 | 2020 | 40 Years |
| Dayton, TX | - | 167,367 | 1,222,272 | 11,342 | 167,367 | 1,233,614 | 1,400,981 | 61,517 | 2020 | 40 Years |
| Devine, TX | - | 307,379 | 1,194,057 | - | 307,379 | 1,194,057 | 1,501,436 | 67,166 | 2020 | 40 Years |
| El Paso, TX | - | 5,085,368 | 9,188,052 | 33,706 | 5,085,368 | 9,221,758 | 14,307,126 | 613,241 | 2020 | 40 Years |
| Euless, TX | - | 802,881 | 1,599,698 | - | 802,881 | 1,599,698 | 2,402,579 | 99,981 | 2020 | 40 Years |
| Gonzales, TX | - | 382,828 | 2,667,952 | - | 382,828 | 2,667,952 | 3,050,780 | 150,012 | 2020 | 40 Years |
| Harker Heights, TX | - | 659,665 | 863,417 | - | 659,665 | 863,417 | 1,523,082 | 48,567 | 2020 | 40 Years |
| Harker Heights, TX | - | 1,564,673 | 806,551 | 12,204 | 1,564,673 | 818,755 | 2,383,428 | 41,028 | 2020 | 40 Years |
| Harlingen, TX | - | 231,002 | 2,423,937 | 197,852 | 231,002 | 2,621,789 | 2,852,791 | 144,596 | 2020 | 40 Years |
| Houston, TX | - | 5,229,809 | 6,223,821 | 22,179 | 5,229,809 | 6,246,000 | 11,475,809 | 372,151 | 2020 | 40 Years |
| Houston, TX | - | 812,409 | 2,365,951 | - | 812,409 | 2,365,951 | 3,178,360 | 133,021 | 2020 | 40 Years |
| Houston, TX | - | 835,464 | 5,596 | 17,094 | 858,154 | - | 858,154 | - | 2020 | - |
| Humble, TX | - | 595,712 | 2,044,118 | (83,862) | 511,850 | 2,044,118 | 2,555,968 | 131,916 | 2020 | 40 Years |
| La Feria, TX | - | 44,473 | 1,170,246 | 6,975 | 44,473 | 1,177,221 | 1,221,694 | 63,693 | 2020 | 40 Years |
| Lake Jackson, TX | - | 898,275 | 1,791,093 | 7,992 | 898,275 | 1,799,085 | 2,697,360 | 89,904 | 2020 | 40 Years |
| Lewisville, TX | - | 1,033,074 | 1,746,113 | - | 1,033,074 | 1,746,113 | 2,779,187 | 109,132 | 2020 | 40 Years |
| Lubbock, TX | - | 332,773 | 933,072 | 4,891 | 332,773 | 937,963 | 1,270,736 | 46,868 | 2020 | 40 Years |
| Lubbock, TX | - | 1,884,836 | 5,897,417 | 38,387 | 1,884,836 | 5,935,804 | 7,820,640 | 296,503 | 2020 | 40 Years |
| Mansfield, TX | - | 1,116,200 | 1,554,255 | 7,992 | 1,116,200 | 1,562,247 | 2,678,447 | 78,062 | 2020 | 40 Years |
| Mckinney, TX | - | 2,304,155 | 1,862,729 | 7,993 | 2,304,155 | 1,870,722 | 4,174,877 | 93,486 | 2020 | 40 Years |
| Rhome, TX | - | 477,504 | 2,267,040 | 21,819 | 477,504 | 2,288,859 | 2,766,363 | 114,282 | 2020 | 40 Years |
| Saginaw, TX | - | 318,799 | 734,538 | 1,020 | 318,799 | 735,558 | 1,054,357 | 41,265 | 2020 | 40 Years |
| San Antonio, TX | - | 947,884 | 884,952 | 7,993 | 947,884 | 892,945 | 1,840,829 | 44,597 | 2020 | 40 Years |
| Terrell, TX | - | 1,065,186 | 3,244,273 | - | 1,065,186 | 3,244,273 | 4,309,459 | 243,320 | 2020 | 40 Years |
| Tomball, TX | - | 789,415 | 1,258,695 | 7,992 | 789,415 | 1,266,687 | 2,056,102 | 63,284 | 2020 | 40 Years |

F-53

# Agree Realty Corporation  
Schedule III - Real Estate and Accumulated Depreciation

December 31, 2022

| COLUMN A | COLUMN B | COLUMN C |  | COLUMN D | COLUMN E |  |  | COLUMN F | COLUMN G | COLUMN H |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Description | Encumbrance | Initial Cost |  | Costs Capitalized Subsequent to Acquisition | Gross Amount at Which Carried at |  |  | Accumulated Depreciation | Date of Acquisition | Life on Which Depreciation in Latest Income Statement is Computed (in years) |
|  |  | Land | Building and Improvements |  | Land | Close of Period Building and Improvements | Total |  |  |  |
| Weslaco, TX | - | 921,078 | 2,179,132 | (36,040) | 921,078 | 2,143,092 | 3,064,170 | 109,174 | 2020 | 40 Years |
| Wylie, TX | - | 1,386,391 | 1,793,944 | 7,993 | 1,386,391 | 1,801,937 | 3,188,328 | 90,047 | 2020 | 40 Years |
| Chester, VA | - | 389,357 | - | 37,083 | 426,440 | - | 426,440 | - | 2020 | - |
| Galax, VA | - | 160,074 | 1,185,312 | 32,976 | 160,074 | 1,218,288 | 1,378,362 | 62,509 | 2020 | 40 Years |
| Henrico, VA | - | 439,174 | 1,681,279 | 36,356 | 439,174 | 1,717,635 | 2,156,809 | 87,048 | 2020 | 40 Years |
| Lynchburg, VA | - | 241,396 | 890,833 | 12,096 | 241,396 | 902,929 | 1,144,325 | 45,071 | 2020 | 40 Years |
| Burlington, WI | - | 1,121,515 | 3,220,272 | 7,993 | 1,121,515 | 3,228,265 | 4,349,780 | 161,363 | 2020 | 40 Years |
| Germantown, WI | - | 617,945 | 1,199,846 | 7,993 | 617,945 | 1,207,839 | 1,825,784 | 60,342 | 2020 | 40 Years |
| Minocqua, WI | - | 226,898 | 2,866,258 | 680 | 226,898 | 2,866,938 | 3,093,836 | 155,155 | 2020 | 40 Years |
| Mt. Pleasant, WI | - | 1,705,035 | 14,386,315 | - | 1,705,035 | 14,386,315 | 16,091,350 | 809,084 | 2020 | 40 Years |
| Portage, WI | - | 800,764 | 3,052,566 | 17,060 | 800,764 | 3,069,626 | 3,870,390 | 178,342 | 2020 | 40 Years |
| Vienna, WV | - | 141,299 | 1,283,342 | - | 141,299 | 1,283,342 | 1,424,641 | 96,251 | 2020 | 40 Years |
| Cheyenne, WY | - | 884,988 | 2,104,537 | 210,758 | 884,988 | 2,315,295 | 3,200,283 | 111,070 | 2020 | 40 Years |
| Gadsden, AL | - | 1,516,549 | - | 18,095 | 1,534,644 | - | 1,534,644 | - | 2021 | - |
| Jasper, AL | - | 733,824 | 5,508,628 | - | 733,824 | 5,508,628 | 6,242,452 | 172,075 | 2021 | 40 Years |
| Pelham, AL | - | 919,330 | 2,327,831 | - | 919,330 | 2,327,831 | 3,247,161 | 111,542 | 2021 | 40 Years |
| Theodore, AL | - | 121,550 | 1,211,283 | 14,505 | 121,550 | 1,225,788 | 1,347,338 | 30,554 | 2021 | 40 Years |
| Bentonville, AR | - | 2,278,930 | 1,199,562 | - | 2,278,930 | 1,199,562 | 3,478,492 | 52,466 | 2021 | 40 Years |
| Jonesboro, AR | - | 345,738 | 1,279,134 | 9,749 | 345,738 | 1,288,883 | 1,634,621 | 32,161 | 2021 | 40 Years |
| Little Rock, AR | - | 2,050,887 | 1,527,796 | - | 2,050,887 | 1,527,796 | 3,578,683 | 57,153 | 2021 | 40 Years |
| Springdale, AR | - | 1,331,671 | 1,696,714 | - | 1,331,671 | 1,696,714 | 3,028,385 | 56,543 | 2021 | 40 Years |
| Avondale, AZ | - | 399,574 | 2,237,087 | 12,740 | 399,574 | 2,249,827 | 2,649,401 | 56,166 | 2021 | 40 Years |
| Winslow, AZ | - | 375,135 | 999,436 | - | 375,135 | 999,436 | 1,374,571 | 37,381 | 2021 | 40 Years |
| Colton, CA | - | 2,917,244 | 6,274,140 | 215 | 2,917,244 | 6,274,355 | 9,191,599 | 300,604 | 2021 | 40 Years |
| Colton, CA | - | 904,398 | - | 215 | 904,613 | - | 904,613 | - | 2021 | - |
| Elk Grove, CA | - | 1,692,244 | 3,387,901 | - | 1,692,244 | 3,387,901 | 5,080,145 | 162,337 | 2021 | 40 Years |
| Pleasant Hill, CA | - | 17,618,136 | - | - | 17,618,136 | - | 17,618,136 | - | 2021 | - |
| Sacramento, CA | - | 2,962,751 | 14,367,331 | 4,194 | 2,962,751 | 14,371,525 | 17,334,276 | 389,083 | 2021 | 40 Years |
| Van Nuys, CA | - | 10,821,454 | 6,196,785 | 118,897 | 10,821,454 | 6,315,682 | 17,137,136 | 159,795 | 2021 | 40 Years |
| Silvesthorne, CO | - | 4,368,862 | 6,781,801 | 43,386 | 4,368,862 | 6,825,187 | 11,194,049 | 170,440 | 2021 | 40 Years |
| Colchester, CT | - | 503,706 | 5,280,982 | - | 503,706 | 5,280,982 | 7,784,688 | 220,041 | 2021 | 40 Years |
| Orange, CT | - | 2,155,182 | 2,723,325 | 3,000 | 2,155,182 | 2,726,325 | 4,881,507 | 97,759 | 2021 | 40 Years |
| Stratford, CT | - | 993,610 | 6,285,488 | - | 993,610 | 6,285,488 | 7,279,098 | 196,371 | 2021 | 40 Years |
| Wallingford, CT | - | 4,598,776 | 19,587,021 | 2,205 | 4,598,776 | 19,589,226 | 24,188,002 | 693,604 | 2021 | 40 Years |
| Wallingford, CT | - | 13,491,385 | 4,628,672 | 1,939 | 13,491,385 | 4,630,611 | 18,121,996 | 127,156 | 2021 | 40 Years |
| Bridgeville, DE | - | 2,496,605 | - | - | 2,496,605 | - | 2,496,605 | - | 2021 | - |
| Daytona Beach, FL | - | 3,248,529 | - | - | 3,248,529 | - | 3,248,529 | - | 2021 | - |
| Daytona Beach, FL | - | 2,949,873 | 7,123,762 | 1,835 | 2,949,873 | 7,125,597 | 10,075,470 | 207,662 | 2021 | 40 Years |
| Fort Walton Beach, FL | - | 691,891 | 1,034,268 | 3,926 | 691,891 | 1,038,194 | 1,730,085 | 48,744 | 2021 | 40 Years |
| Hialeah, FL | - | 4,971,380 | - | 5,191 | 4,976,571 | - | 4,976,571 | - | 2021 | - |
| Hollywood, FL | - | 804,622 | 3,907,841 | 285 | 804,622 | 3,908,126 | 4,712,748 | 150,534 | 2021 | 40 Years |
| Homestead, FL | - | 545,581 | 1,461,745 | - | 545,581 | 1,461,745 | 2,007,326 | 72,873 | 2021 | 40 Years |
| Jacksonville, FL | - | 1,072,558 | 756,285 | - | 1,072,558 | 756,285 | 1,828,843 | 32,965 | 2021 | 40 Years |
| Merritt Island, FL | - | 422,211 | 2,372,216 | - | 422,211 | 2,372,216 | 2,794,427 | 74,072 | 2021 | 40 Years |
| Naples, FL | - | 1,453,431 | - | - | 1,453,431 | - | 1,453,431 | - | 2021 | - |
| Naples, FL | - | 1,190,857 | - | - | 1,190,857 | - | 1,190,857 | - | 2021 | - |
| Naples, FL | - | 8,035,701 | 10,505,521 | 25,022 | 8,035,701 | 10,530,543 | 18,566,244 | 328,289 | 2021 | 40 Years |
| Orlando, FL | - | 1,039,722 | - | - | 1,039,722 | - | 1,039,722 | - | 2021 | - |
| Pembroke Pines, FL | - | 2,285,774 | - | - | 2,285,774 | - | 2,285,774 | - | 2021 | - |
| Sarasota, FL | - | 1,178,923 | 922,936 | - | 1,178,923 | 922,936 | 2,101,859 | 30,749 | 2021 | 40 Years |
| Tampa, FL | - | 439,430 | - | - | 439,430 | - | 439,430 | - | 2021 | - |
| Vero Beach, FL | - | 1,046,780 | - | - | 1,046,780 | - | 1,046,780 | - | 2021 | - |
| Yulee, FL | - | 2,262,371 | 7,246,236 | - | 2,262,371 | 7,246,236 | 9,508,607 | 271,161 | 2021 | 40 Years |
| Atlanta, GA | - | 68,943 | 6,048,020 | 28,018 | 68,943 | 6,076,038 | 6,144,981 | 239,912 | 2021 | 40 Years |
| Buford, GA | - | 933,105 | 1,460,129 | 136 | 933,105 | 1,460,265 | 2,393,370 | 54,136 | 2021 | 40 Years |
| Conyers, GA | - | 347,441 | 2,622,249 | 12,604 | 347,441 | 2,634,853 | 2,982,294 | 65,793 | 2021 | 40 Years |
| Dublin, GA | - | 217,337 | 605,199 | - | 217,337 | 605,199 | 822,536 | 18,912 | 2021 | 40 Years |
| Gray, GA | - | 148,268 | 1,074,924 | - | 148,268 | 1,074,924 | 1,223,192 | 44,761 | 2021 | 40 Years |
| Jefferson, GA | - | 527,074 | 931,010 | 1,835 | 527,074 | 932,845 | 1,459,919 | 27,093 | 2021 | 40 Years |
| Jonesboro, GA | - | 344,270 | 1,576,064 | 11,550 | 344,270 | 1,587,614 | 1,931,884 | 42,850 | 2021 | 40 Years |
| Kingsland, GA | - | 185,047 | 2,599,400 | - | 185,047 | 2,599,400 | 2,784,447 | 86,573 | 2021 | 40 Years |
| Marietta, GA | - | 1,177,865 | 1,833,593 | - | 1,177,865 | 1,833,593 | 3,011,458 | 87,860 | 2021 | 40 Years |
| Rome, GA | - | 1,380,532 | - | - | 1,380,532 | - | 1,380,532 | - | 2021 | - |
| Stockbridge, GA | - | 278,080 | 1,479,158 | 2,500 | 278,080 | 1,481,658 | 1,759,738 | 37,026 | 2021 | 40 Years |
| Thomson, GA | - | 257,455 | 1,291,280 | 14,424 | 257,455 | 1,305,704 | 1,563,159 | 32,552 | 2021 | 40 Years |
| Centerville, IA | - | 182,203 | 2,115,086 | - | 182,203 | 2,115,086 | 2,297,289 | 83,549 | 2021 | 40 Years |
| Des Moines, IA | - | 902,749 | - | - | 902,749 | - | 902,749 | - | 2021 | - |
| Mason City, IA | - | 869,564 | 3,270,795 | 62,238 | 869,564 | 3,333,033 | 4,202,597 | 133,873 | 2021 | 40 Years |
| Nampa, ID | - | 229,425 | 1,558,507 | - | 229,425 | 1,558,507 | 1,787,932 | 55,177 | 2021 | 40 Years |
| Bloomingdale, IL | - | 5,377,240 | 9,661,090 | - | 5,377,240 | 9,661,090 | 15,038,330 | 422,429 | 2021 | 40 Years |
| Bloomington, IL | - | 239,089 | 1,826,238 | - | 239,089 | 1,826,238 | 2,065,327 | 64,659 | 2021 | 40 Years |
| Bourbonnais, IL | - | 1,593,823 | 1,525,782 | 1,835 | 1,593,823 | 1,527,617 | 3,121,440 | 41,322 | 2021 | 40 Years |
| Carbondale, IL | - | 496,342 | 1,025,021 | 8,125 | 496,342 | 1,033,146 | 1,529,488 | 34,309 | 2021 | 40 Years |

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