Agree Realty

Moat drivers are structural rather than technological. Cost advantages arise from scale, low overhead, and a predominantly unsecured, investment-grade funding model that lowers the cost of capital relative to smaller peers. Efficient scale in sourcing sale-leasebacks and developer-driven opportunities further widens spreads.

Intangible relationship assets with top retailers support off-market deal flow. Switching costs for tenants are moderate due to relocation frictions and long lease terms but are not prohibitive. Network effects are minimal.

Evidence: 2,756-property national platform; 65% of ABR from investment-grade credits; 99.7% occupancy; 7.8-year WALT; acquisitions at 7.1% cap with 11.3-year WALT, much of it relationship-driven; and 10.1% ABR from fully occupied ground leases that enhance durability.

Component view (0 to 100): cost advantage 85, efficient scale 80, intangible/relationships 75, switching costs 60, network effects 10; weighted composite ~80.