GICS Sector : Real Estate
Agree Realty Corporation is a publicly traded real estate investment trust primarily engaged in the acquisition and development of properties net leased to industry-leading retail tenants.As of September 30, 2020, the Company owned and operated a portfolio of 1,027 properties, located in 45 states and containing approximately 21.0 million square feet of gross leasable area.The Company's common stock is listed on the New York Stock Exchange under the symbol "ADC". Show Full description
Agree Realty reported a strong financial performance in Q4 2025, with AFFO per share growth of 4.5% and investment activity of $1.55 billion, representing a 60% year-over-year increase. The company's EPS came in at $1.11, beating estimates of $1.1. Revenue growth is expected to continue, with analysts estimating an 11.1% increase in revenues for the next year. The company's guidance for 2026 AFFO per share is $4.54 to $4.58, representing a 5.4% year-over-year growth.
Publication Date: Feb -15
The company's investment activity was robust in Q4 2025, with $377 million invested in 94 high-quality retail net leased properties. The acquired properties had a weighted average cap rate of 7.1% and a weighted average lease term of 9.6 years. Investment-grade retailers accounted for nearly two-thirds of the annualized base rent acquired. The company's development and DFP platforms had a record year, with 34 projects either completed or under construction, representing approximately $225 million of committed capital.
Agree Realty's balance sheet is in a strong position, with pro forma net debt to recurring EBITDA standing at 3.8 times. The company has significant liquidity, with over $2 billion available, including over $715 million of outstanding forward equity. The company's debt profile is manageable, with no material debt maturities in the near term.
Using the company's current valuation metrics, we can assess what's priced in. The P/E Ratio is 45.05, indicating a relatively high valuation. However, the company's growth prospects, including its strong investment activity and development pipeline, may justify this premium. The Dividend Yield is 3.96%, providing a relatively attractive income stream. With an ROE of 3.39% and an ROIC of 29.64%, the company is generating strong returns on its investments.
Agree Realty's strong execution and growth prospects position the company for continued success. With a robust investment pipeline and a strong balance sheet, the company is well-positioned to capitalize on opportunities in the retail net lease space. As the company continues to grow and expand its portfolio, investors can expect to benefit from its strong growth prospects and attractive dividend yield.
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Feb -10
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Feb -10
Rental income from Agree Realty Corporation is driven by increasing demand for net lease retail properties, particularly in the United States. Growing e-commerce and omnichannel retailing are fueling demand for logistics and distribution centers, while the rise of experiential retail is boosting demand for retail spaces.
Agree Realty's non-core operations, including investments and miscellaneous items, are expected to grow steadily driven by increasing diversification of revenue streams, strategic investments, and opportunistic acquisitions.
Agree Realty Corporation acquires and develops single-tenant net lease properties, primarily in the retail sector, providing a steady income stream to investors.
The company owns and operates a portfolio of retail properties, including shopping centers, strip centers, and freestanding stores, generating rental income.
Agree Realty Corporation offers development and redevelopment services, transforming underutilized properties into thriving retail destinations.
The company provides acquisition and disposition services, facilitating the buying and selling of net lease properties and retail assets.
The threat of substitutes for Agree Realty Corporation is moderate, as there are alternative options for investors seeking real estate investment trusts (REITs) with similar investment objectives.
The bargaining power of customers is low, as Agree Realty Corporation's properties are diversified across various industries and tenants, reducing dependence on a single customer.
The bargaining power of suppliers is low, as Agree Realty Corporation has a diversified portfolio of properties, reducing reliance on a single supplier.
The threat of new entrants is high, as the REIT industry is relatively easy to enter, and new companies can easily raise capital to invest in real estate.
The intensity of rivalry is moderate, as Agree Realty Corporation operates in a competitive industry with several established players, but has a diversified portfolio and a strong management team to mitigate the impact of competition.
| Value | |
|---|---|
| Debt Weight | 31.68% |
| Debt Cost | 3.95% |
| Equity Weight | 68.32% |
| Equity Cost | 6.57% |
| WACC | 5.74% |
| Leverage | 46.37% |
Value: 4.1
Growth: 5.1
Quality: 7.7
Yield: 8.0
Momentum: 4.0
Volatility: 9.7
1-Year Total Return ->
Value: 5.1
Growth: 5.8
Quality: 5.9
Yield: 8.0
Momentum: 3.5
Volatility: 9.0
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Value: 3.0
Growth: 4.3
Quality: 6.8
Yield: 8.0
Momentum: 5.0
Volatility: 10.0
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Value: 3.0
Growth: 4.7
Quality: 6.9
Yield: 7.0
Momentum: 5.5
Volatility: 10.0
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Value: 2.6
Growth: 4.7
Quality: 6.7
Yield: 7.0
Momentum: 5.0
Volatility: 9.0
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Value: 4.0
Growth: 3.3
Quality: 6.0
Yield: 8.0
Momentum: 3.0
Volatility: 9.3
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