ADC · Agree Realty Corporation

Agree Realty Corporation delivered strong Q1 2026 results, with AFFO per share of $1.14 marking 7.9% growth over the prior year, driven by robust acquisition activity and portfolio expansion. Total revenues reached $200.8 million, up from $169.2 million YoY, fueled by $181.4 million in minimum rents and contributions from recent investments. Operating expenses rose to $104.5 million, reflecting higher depreciation and amortization from a growing asset base, but net income attributable to common stockholders climbed 33.4% to $60.2 million. Non-GAAP metrics highlighted operational strength, with Core FFO at $136.3 million (up 21.0% YoY) and AFFO at $137.6 million (up 20.7% YoY). The company invested $402.5 million in 85 properties at a 7.1% blended cap rate, focusing on e-commerce-resistant sectors like grocery, home improvement, and auto parts, with 59.3% of acquired ABR from investment grade tenants. Development activity included completing four projects for $22.5 million and commencing two more, supporting a pipeline of 15 projects totaling $112 million. Balance sheet remains fortress-like, with $2.3 billion in liquidity including $1.37 billion in forward equity proceeds, $780.4 million revolver capacity, and $100 million term loan availability. Proforma net debt to recurring EBITDA improved to 3.2x, underscoring conservative leverage. CEO Joey Agree emphasized a 'fortified balance sheet' and 'strong pipeline,' positioning the company for execution. Guidance for 2026 AFFO per share ($4.54-$4.58, 5.4% growth at midpoint), investments ($1.4B-$1.6B), and dispositions ($25M-$75M) was reaffirmed, signaling confidence amid retail net lease opportunities. The increased April dividend to $0.267 per share (69% AFFO payout) reflects commitment to shareholder returns.