Environmental Practices

AGREE HEADQUARTERS

In July 2023, Agree moved into its new state-of-the-art corporate headquarters, which is anticipated to receive LEED certification in the near future. The building includes training and development space, health and wellness facilities, and collaborative meeting areas aligned with our ADC University and ADC Wellness initiatives.  Our new headquarters has several key features that support our goal to be a good steward to the environment around us, including:

• Easy access through multiple forms of transportation for employees
• EV charging stations
• Motion activated lighting that limits light pollution
• Modifications to the property that reduce outdoor and indoor water use
• High-quality building materials that create a more energy efficient structure
• High-quality indoor lighting that limits energy consumption and provides a healthy work environment for team members
• A skylight and the use of exterior glass windows provide ample sunlight within the building

APPROACH TO CLIMATE CHANGE AND RESILIENCE

We understand that climate change could impact our investments and we have a role in understanding how our operations impact the climate. Given the potential impact from climate-related change on our business, properties in our portfolio are monitored throughout the lifecycle of ownership to assess physical climate-related risks such as drought, earthquake, flooding, hail, tornado, sea level rise, windstorm and wildfire. To help mitigate the impact of potential extreme weather events on our portfolio, diversification is a key piece of our strategy. In 2023, our acquisitions had an average purchase price of approximately $4 million. In addition, our portfolio’s largest exposure in any 10-mile radius is less than $60 million, demonstrating our geographic diversity. Our properties are comprised of more than 2,100 assets spanning 49 states, and no state makes up more than 7% of total annualized base rents.

Agree remains focused on being a good steward to the environment. The Company frequently works with leading retailers that have a similar responsibility to operate with minimal impact on the world around them. In 2023, the Company built on our commitment by:

• Measuring our environmental impact through a greenhouse gas emissions inventory and tracking water usage
• Executing numerous leases with green lease language
• Engaging tenants to collaborate on new opportunities for sustainability initiatives at the property level
• Analyzing our properties with green building certifications
• Monitoring tenant sustainability policies throughout the investment life cycle

TENANT ENGAGEMENT

Agree is predominantly a single-tenant retail REIT with net leases, therefore for most of our portfolio we do not control utility usage. Our focus is on industry-leading, national and super-regional retailers, which provides for relationships with some of the most environmentally conscientious retailers, in the world. Agree has recently reached out to close to two-thirds of its tenant base as measured by annualized base rents to discuss projects that support both parties’ sustainability objectives. Topics of conversation included:

• Adding EV charging stations
• Installing solar panels on buildings
• Improving efficiency through HVAC upgrades and LED lighting
• Sharing emissions data
• Green leasing provisions and other sustainability initiatives

GREEN LEASES

As part of the Company’s tenant engagement efforts, Agree continues to focus on green leasing. The Company has signed numerous green leases with tenants, resulting in Gold Level recognition from Green Lease Leaders for the second consecutive year. Green Lease Leaders is awarded by the Institute for Market Transformation and the U.S. Department of Energy’s Better Buildings Alliance.

SUSTAINABILITY THROUGHOUT THE INVESTMENT LIFE CYCLE

Sustainability plays an important role in the Company’s decision-making process for investments. Agree checks for key environmental risks and considers tenant sustainability programs when evaluating prospective acquisitions and developments. Systematically evaluating the environmental risks of our portfolio and monitoring our tenants’ sustainability programs allows us to consider the portfolio composition that best supports our goal to be a good steward to the environment. We also engage with municipalities prior to pursuing an acquisition or development, ensuring that the asset we’re acquiring or developing is compliant with local laws and regulations.

WASTE MANAGEMENT

The Company tracks waste created per year at our corporate headquarters. We estimate our team creates approximately 113,625 pounds of waste per year. Additionally, the Company does not produce any hazardous waste. The Company is looking for ways to reduce waste and recently entered into a partnership with a third- party organization to donate laptops and other IT equipment, diverting e-waste and providing those in need with access to devices.