Cohen & Steers Invests $370M in Agree Realty; Plans Other REIT Investments

NEW YORK—Cohen & Steers reports that it has invested about $370 million in the real estate investment trust Agree Realty Corp.

Cohen & Steers said the funds will strengthen the company’s potential to take advantage of possible acquisition opportunities.

Thomas Bohjalian, head of US Real Estate at Cohen & Steers, described Agree Realty’s balance sheet and track record as “very strong.”

“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,” he said in a statement

Cohen & Steers, which specializes in liquid real assets, said it’s watching for opportunities to give “capital infusions” to real estate investment trusts, including helping companies capitalize on acquisitions.

The firm said it’s also in a unique spot to support companies that need capital because of market disruptions tied to the 2020 recession.

The about $370 million investment in Agree Realty was announced as a devastated US economy continues to reel from the coronavirus crisis.

“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, in a statement.

He says they have been focused on companies with “strong balance sheets that are trading at discounted valuations.”

Cohen & Steers reported it used a similar plan in 2009, leading an effort that year to recapitalize real estate investment trusts.

“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,” said Robert Steers, co-founder and CEO of Cohen & Steers, in a statement.

Agree Realty Corp., a publicly traded real estate investment trust, owned and operated more than 860 properties in 46 states as of March 31.