Business

Agree Realty Corporation Reports First Quarter 2026 Results

ROYAL OAK, Mich., April 21, 2026--Agree Realty Corporation (NYSE: ADC) (the "Company") today announced results for the quarter ended March 31, 2026. All per share amounts included herein are on a diluted per common share basis unless otherwise stated.

Agree Realty CorporationApril 21, 202615
Agree Realty Corporation Reports First Quarter 2026 Results

About this update from Agree Realty Corporation

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All per share amounts included herein are on a diluted per common share basis unless otherwise stated.","length":278,"tagName":"p"},{"type":"text","content":" First Quarter 2026 Financial and Operating Highlights: ","length":54,"tagName":"p"},{"type":"list","items":[{"val":[{"type":"text","content":"Invested approximately $424 million in 100 retail net lease properties","length":70,"tagName":"p","attribs":{}}]},{"val":[{"type":"text","content":"15 development or Developer Funding Platform ("DFP") projects completed or under construction with anticipated total costs of approximately $112 million","length":162,"tagName":"p","attribs":{}}]},{"val":[{"type":"text","content":"Net Income per share attributable to common stockholders increased 19.1% to $0.50","length":81,"tagName":"p","attribs":{}}]},{"val":[{"type":"text","content":"Core Funds from Operations ("Core FFO") per share increased 8.1% to $1.13","length":83,"tagName":"p","attribs":{}}]},{"val":[{"type":"text","content":"Adjusted Funds from Operations ("AFFO") per share increased 7.9% to $1.14","length":83,"tagName":"p","attribs":{}}]},{"val":[{"type":"text","content":"Declared an increased monthly dividend of $0.267 per common share for April, a 4.3% year-over-year increase","length":107,"tagName":"p","attribs":{}}]},{"val":[{"type":"text","content":"Sold 8.7 million shares of common stock via the forward component of the Company's at-the-market equity ("ATM") program for anticipated net proceeds of approximately $658 million","length":192,"tagName":"p","attribs":{}}]},{"val":[{"type":"text","content":"Balance sheet well positioned at 3.2 times proforma net debt to recurring EBITDA; 5.1 times excluding unsettled forward equity","length":126,"tagName":"p","attribs":{}}]},{"val":[{"type":"text","content":"Ended the quarter with approximately $2.3 billion of liquidity including availability on the revolving credit facility, outstanding forward equity, undrawn term loan capacity, and cash on hand","length":192,"tagName":"p","attribs":{}}]}],"tagName":"ul","bulletedList":true,"length":1096,"olType":false},{"type":"text","content":" Financial Results ","length":17,"tagName":"p"},{"type":"text","content":" Net Income Attributable to Common Stockholders ","length":46,"tagName":"p"},{"type":"text","content":"Net Income for the three months ended March 31, 2026 increased 33.4% to $60.2 million, compared to $45.1 million for the comparable period in 2025. Net Income per share for the three months ended March 31 st increased 19.1% to $0.50, compared to $0.42 for the comparable period in 2025.","length":285,"tagName":"p"},{"type":"text","content":" Core FFO ","length":8,"tagName":"p"},{"type":"text","content":"Core FFO for the three months ended March 31, 2026 increased 21.0% to $136.3 million, compared to $112.7 million for the comparable period in 2025. Core FFO per share for the three months ended March 31 st increased 8.1% to $1.13, compared to $1.04 for the comparable period in 2025.","length":282,"tagName":"p"},{"type":"text","content":" AFFO ","length":4,"tagName":"p"},{"type":"text","content":"AFFO for the three months ended March 31, 2026 increased 20.7% to $137.6 million, compared to $114.0 million for the comparable period in 2025. AFFO per share for the three months ended March 31 st increased 7.9% to $1.14, compared to $1.06 for the comparable period in 2025.","length":274,"tagName":"p"},{"type":"text","content":" Dividend ","length":8,"tagName":"p"},{"type":"text","content":"In the first quarter, the Company declared monthly cash dividends of $0.262 per common share for each of January, February and March 2026. The monthly dividends declared during the first quarter reflect an annualized dividend amount of $3.144 per common share, representing a 3.6% increase over the annualized dividend amount of $3.036 per common share from the first quarter of 2025. The dividends represent payout ratios of approximately 70% of Core FFO per share and 69% of AFFO per share, respectively.","length":506,"tagName":"p"},{"type":"readMore"},{"type":"text","content":"Subsequent to quarter end, the Company declared an increased monthly cash dividend of $0.267 per common share for April 2026. The April monthly dividend reflects an annualized dividend amount of $3.204 per common share, representing a 4.3% increase over the annualized dividend amount of $3.072 per common share from the second quarter of 2025. The April dividend is payable on May 14, 2026 to stockholders of record at the close of business on April 30, 2026.","length":460,"tagName":"p"},{"type":"text","content":"Additionally, subsequent to quarter end, the Company declared a monthly cash dividend on its 4.25% Series A Cumulative Redeemable Preferred Stock of $0.08854 per depositary share, which is equivalent to $1.0625 per annum. The dividend is payable on May 1, 2026 to stockholders of record at the close of business on April 21, 2026.","length":330,"tagName":"p"},{"type":"text","content":" Earnings Guidance ","length":17,"tagName":"p"},{"type":"text","content":"The table below provides estimates for significant components of our 2026 earnings guidance.","length":92,"tagName":"p"},{"type":"table","headerItems":[],"items":[{"val":[{"colspan":"1","rowspan":"1","style":"vertical-align:bottom;padding-left:0.0px;width:58%;","val":[{"type":"text","content":" ","length":6,"tagName":"p","attribs":{}}]},{"colspan":"1","rowspan":"1","style":"vertical-align:bottom;padding-left:0.0px;width:1%;","val":[{"type":"text","content":" ","length":6,"tagName":"p","attribs":{}}]},{"colspan":"1","rowspan":"1","style":"vertical-align:bottom;padding-left:0.0px;width:20%;","val":[{"type":"text","content":" Prior 2026 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In addition, certain non-recurring items may also significantly affect net income but are generally adjusted for in AFFO. Based on our historical experience, the dollar amounts of these items could be significant and could have a material impact on the Company’s GAAP results for the guidance period. ","length":877,"tagName":"p","attribs":{}}]}]},{"val":[{"colspan":"1","rowspan":"1","style":"padding-left:0.0px;padding-right:0.0px;padding-bottom:4.0px;vertical-align:top;text-align:left;","val":[{"type":"text","content":" (2) ","length":3,"tagName":"p","attribs":{}}]},{"colspan":"1","rowspan":"1","val":[]},{"colspan":"1","rowspan":"1","style":"vertical-align:top;padding-left:0.0px;","val":[{"type":"text","content":" The Company's AFFO per share guidance utilizes the current forward SOFR curve to forecast interest expense related to any outstanding commercial paper notes and revolver borrowings during the year. 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"We are extremely well-positioned to execute on our Operating Strategy for the remainder of the year and beyond."","length":339,"tagName":"p"},{"type":"text","content":" Portfolio Update ","length":16,"tagName":"p"},{"type":"text","content":"As of March 31, 2026, the Company’s portfolio consisted of 2,756 properties located in all 50 states and contained approximately 57.5 million square feet of gross leasable area. At quarter end, the portfolio was approximately 99.7% leased, had a weighted-average lease term of approximately 7.8 years, and generated approximately 65.4% of annualized base rents from investment grade retail tenants.","length":398,"tagName":"p"},{"type":"text","content":" Ground Lease Portfolio ","length":22,"tagName":"p"},{"type":"text","content":"During the first quarter, the Company acquired nine ground leases for an aggregate purchase price of approximately $28.4 million, representing 7.5% of annualized base rents acquired.","length":182,"tagName":"p"},{"type":"text","content":"As of March 31, 2026, the Company’s ground lease portfolio consisted of 261 leases located in 39 states and totaled approximately 7.0 million square feet of gross leasable area. Properties ground leased to tenants represented 10.1% of annualized base rents.","length":257,"tagName":"p"},{"type":"text","content":"At quarter end, the ground lease portfolio was fully occupied, had a weighted-average lease term of approximately 9.1 years, and generated 84.0% of annualized base rents from investment grade retail tenants.","length":207,"tagName":"p"},{"type":"text","content":" Acquisitions ","length":12,"tagName":"p"},{"type":"text","content":"Total acquisition volume for the first quarter was approximately $402.5 million and included 85 properties net leased to leading retailers operating in sectors including auto parts, grocery stores, home improvement, farm and rural supply, convenience stores, and crafts and novelties. The properties are located in 32 states and leased to tenants operating in 21 sectors.","length":371,"tagName":"p"},{"type":"text","content":"The properties were acquired at a weighted-average capitalization rate of 7.1% and had a weighted-average lease term of approximately 11.3 years. Approximately 59.3% of annualized base rents acquired were generated from investment grade retail tenants.","length":252,"tagName":"p"},{"type":"text","content":" Dispositions ","length":12,"tagName":"p"},{"type":"text","content":"During the first quarter, the Company sold seven properties for gross proceeds of approximately $10.6 million. The dispositions were completed at a weighted-average capitalization rate of 6.8%.","length":193,"tagName":"p"},{"type":"text","content":"The Company's disposition guidance for 2026 is between $25 million and $75 million.","length":87,"tagName":"p"},{"type":"text","content":" Development and Developer Funding Platform ","length":42,"tagName":"p"},{"type":"text","content":"During the first quarter, the Company commenced two development or DFP projects, with total anticipated costs of approximately $18.0 million. Construction continued during the quarter on nine projects with anticipated costs totaling approximately $71.4 million. The Company completed four projects during the quarter with total costs of approximately $22.5 million.","length":365,"tagName":"p"},{"type":"text","content":"For the three months ended March 31, 2026, the Company had 15 development or DFP projects completed or under construction with anticipated total costs of approximately $112.0 million. The projects are leased to leading retailers including TJX Companies, Burlington, 7-Eleven, Boot Barn, Starbucks, Gerber Collision, and Sunbelt Rentals.","length":336,"tagName":"p"},{"type":"text","content":"The following table presents estimated costs for the Company's active or completed development and DFP projects for the three months ended March 31, 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