NEW YORK, April 29, 2020 /PRNewswire/ -- Cohen & Steers, Inc. (NYSE: CNS), a leading real assets specialty manager, is pleased to announce that the firm, on behalf of its client accounts, has invested approximately $370 million in Agree Realty Corporation (NYSE: ADC), a leading net lease retail REIT. Both Agree Realty and Cohen & Steers view this as opportunistic, as the capital will bolster the company's ability to take advantage of potential acquisition opportunities.
"Agree Realty's track record, portfolio fundamentals and balance sheet are very strong, and this direct equity placement gives the company additional equity capital to proactively fund acquisitions that may emerge due to dislocations in the retail real estate market," said Thomas Bohjalian, Head of U.S. Real Estate at Cohen & Steers.
As the leader in listed REIT investing since 1986, Cohen & Steers is in a unique position to support companies in need of capital due to the significant market disruptions resulting from the 2020 recession. Cohen & Steers is monitoring opportunities to provide capital infusions to REITs in a variety of ways, including:
- Helping healthy companies take advantage of opportunistic acquisitions
- Improving strained capital structures of otherwise sound businesses
- Assisting high quality but cyclically challenged businesses to survive
"We have been focusing on companies with strong balance sheets that are trading at discounted valuations, but stand ready to provide equity capital to solve problems and capitalize on opportunities. Our deep experience with REITs over multiple real estate cycles puts us in a unique position to identify opportunities as a result of the economic effects of the recession," said Joseph Harvey, President of Cohen & Steers.
While market dynamics are different today, Cohen & Steers employed a similar plan in 2009 following the global financial crisis. The firm led the effort in 2009 to recapitalize REITs, helping to repair balance sheets and provide companies liquidity to fund acquisitions.
"Following the global financial crisis, REITs had opportunities to go on offense and purchase properties at steep discounts, but they also had balance sheet issues that needed to be resolved first," said Robert Steers, Co-Founder and CEO of Cohen & Steers. "By helping these firms raise new equity, we were able to strengthen their financial positions and demonstrate to the market that REITs would withstand the liquidity crisis. As a result, REITs were one of the first sectors to recover, creating significant returns for REIT shareholders. While balance sheets are better today than in 2009, companies' ability to access capital and our ability to provide that capital will differentiate the REIT sector."
About Cohen & Steers
Cohen & Steers is a global investment manager specializing in liquid real assets, including real estate securities, listed infrastructure and natural resource equities, as well as preferred securities and other income solutions. Founded in 1986, the firm is headquartered in New York City, with offices in London, Hong Kong and Tokyo.
About Agree Realty Corporation
Agree Realty Corporation (NYSE: ADC) is a publicly traded real estate investment trust primarily engaged in the acquisition and development of properties net leased to industry-leading retail tenants. As of March 31, 2020, the Company owned and operated a portfolio of 868 properties, located in 46 states and containing approximately 16.3 million square feet of gross leasable area.
This release is not investment advice or a recommendation or offer to invest in Agree Realty or any Cohen & Steers product or service, and Agree Realty is not necessarily a holding in any particular fund or account managed by Cohen & Steers.
SOURCE Cohen & Steers, Inc.