FARMINGTON HILLS, Mich.,
Feb. 16, 2011 /PRNewswire/ -- This
morning, Borders Group, Inc. (NYSE: BGP) and certain of its
subsidiaries, including Borders, Inc., filed a bankruptcy petition
under Chapter 11 and an anticipated store closing list with the
bankruptcy court.
Agree Realty Corporation (the "Company") currently has 14
properties leased to Borders, Inc. under triple net leases,
including 13 retail properties and the Borders Group, Inc.
corporate headquarters in Ann Arbor,
Michigan. Two of the Borders retail locations are not
occupied by Borders, but are occupied by subtenants under sublease
agreements. The Company records annualized rental revenues of
approximately $7.4 million, including
approximately $1 million in non-cash
rental revenues annually, from Borders, Inc. The revenue from
Borders amounts to approximately 20% of the Company's annualized
base rental revenues. Borders filed an anticipated store
closing list with the bankruptcy court that included five of the
Company's properties, which five stores generate approximately
$2.6 million of the Company's
annualized base rental revenues. The various leases are with
Borders, Inc. and are guaranteed by Borders Group, Inc.
The Company has provided substitute borrowing base properties to
replace Borders stores under its $55
million credit facility, and the credit facility banks have
acknowledged that the financial condition of Borders and any
default under any of the non-recourse loans secured by a property
leased to Borders shall not be deemed a default under the credit
facility.
"We wish Borders success in their plans announced today to
restructure and operate under Chapter 11," said Joey Agree,
President and Chief Operating Officer of the Company. "While
uncertainty has clouded Borders for the past three years, our
organization has anticipated such an event and worked to diversify
our portfolio with leading national retailers."
The Company has filed a current report on Form 8-K with the SEC
regarding the bankruptcy. The Company is engaged in the
ownership, management and development of properties which are
primarily single tenant properties leased to major retail tenants
and neighborhood community shopping centers. The Company owns and
operates a portfolio of 80 properties, located in 17 states and
containing 3.5 million square feet of leasable space.
The Company considers portions of the information contained in
this release to be forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, each as amended. These
forward-looking statements represent the Company's expectations,
plans and beliefs concerning future events. Although these
forward-looking statements are based on good faith beliefs,
reasonable assumptions and the Company's best judgment reflecting
current information, certain factors could cause actual results to
differ materially from such forward–looking statements. Such
factors are detailed from time to time in reports filed or
furnished by the Company with the Securities and Exchange
Commission, including the Company's Form 10-K for the year ended
December 31, 2009. Except as required
by law, the Company assumes no obligation to update these
forward–looking statements, even if new information becomes
available in the future.
For additional information, visit the Company's home page on the
Internet at http://www.agreerealty.com.
SOURCE Agree Realty Corporation