Environmental Practices

AGREE REALTY (THE “COMPANY” OR “AGREE”) EMBRACES ITS RESPONSIBILITY TO BE A GOOD STEWARD TO THE ENVIRONMENT, TO USE NATURAL RESOURCES CAREFULLY, AND TO ENSURE THOSE RESOURCES WILL BE AVAILABLE FOR FUTURE GENERATIONS.

Current Headquarters

AGREE HEADQUARTERS

In July 2023, Agree moved into its new state-of-the-art corporate headquarters, which is currently under review for LEED certification. 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
Energy-efficient lighting systems that limit energy consumption and provide 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 life cycle 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 recent years, 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 2,700 assets spanning across all 50 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 recent years, the Company built on our commitment by:

Measuring our environmental impact through a greenhouse gas emissions inventory and tracking water usage
Executing over 125 leases with green lease language
Engaging tenants to collaborate on new opportunities for sustainability initiatives at the property level
Assessing our portfolio for 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 over three-quarters 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 fourth consecutive year in 2026. 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 a total of approximately 113,625 pounds of non-hazardous waste per year. The Company is looking for ways to reduce waste and has 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.

EXPANDING DATA COVERAGE

As part of our commitment to transparent and accurate environmental reporting, Agree is focused on increasing the share of our portfolio for which we receive actual energy and emissions data directly from tenants—referred to as our “data coverage.” Greater coverage reduces our reliance on estimation methodologies and improves the accuracy of our Scope 3 emissions disclosures. In 2024, we expanded our data coverage to 28% of the portfolio, a meaningful step up from prior years, achieved through direct outreach to our top tenants and continued integration of ENERGY STAR Portfolio Manager. Building on this progress, we have established the following coverage goal:

Achieve greater than 65% data coverage by the publication of our 2030 Sustainability Report