NEW YORK ( TheStreet) -- On Thursday, Agree Realty (ADC - Get Report) announced second-quarter earnings. Funds from operations increased to $5,723,000 compared with $5,431,000 the second quarter of 2011.Net income for the second quarter of 2012 increased to $5,090,000, or 44 cents per diluted share, compared to net income for the second quarter of 2011 of $3,823,000, or 38 cents per share. Total revenue increased to $9,236,000, compared with total revenue of $8,516,000 in the second quarter of 2011.
I am extremely pleased to report positive operating results for the quarter. Our efforts to expand and improve our portfolio have begun to materialize as our total revenues and funds from operations for the quarter have both increased over the comparable quarter. During the quarter, we have improved our portfolio occupancy, disposed of non-core assets, made significant development announcements and exceeded our acquisition expectations.In late 2010, Borders Books filed for bankruptcy. The REIT accounted for around 29% of the company's annualized base rents and thru a series of asset management initiatives the triple-net REIT has reduced its overall exposure substantially. During the second quarter Agree sold a 30,000 square foot location in Omaha, Neb. for $2.75 million. The company has one former Border's property in Columbus, Ohio under contract for sale and has executed a letter of intent to lease another former Borders property in Monroeville, Pa. (to an industry leading home fashion retailer). The last remaining former Borders property in the portfolio is located in Lawrence, Kan. and the property is currently being marketed for sale or lease. Throughout the recession, Agree has been able to maintain its dividend. The company has paid 73 consecutive quarterly cash dividends since its IPO (in 1994). Agree owns 87 properties (3.5 million square feet) in 23 states and the majority of the properties are single-tenant assets leased to major national and regional chains. Agree's top three tenants are Walgreens (WAG) (34%), CVS (CVS) (7%), and Sears/Mart (SHLD) (11%). The Michigan-based REIT is most active in diversifying its platform via acquisitions and development. Some of Agree's tenants include Lowe's, Advance Auto Parts, Kohl's, Chase Bank, Staples, AT&T, Big O Tires, NTB, Wal-Mart, JC Penny, Aldi, Dick's, AutoZone, Goodyear Tire and Dollar Tree. Recently Agree closed on a strategic alliance with Wawa, a privately held convenience store operator with over 590 locations along the East Coast. Agree was named a preferred developer for Wawa (in Florida) and this strategic partnership should provide the REIT with ample development opportunities for the foreseeable future (Wawa plans to open around 100 new stores in Florida over the next five years).