In This Article:
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Investment Volume: Over $375 million invested across three external growth platforms in Q1 2025.
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Liquidity: $1.9 billion of liquidity and over $1.2 billion of hedge capital.
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Forward Equity Raised: $181 million raised via ATM program in Q1 2025.
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Net Debt to Recurring EBITDA: 3.4 times at quarter end.
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Portfolio Properties: 2,422 properties spanning all 50 states with 99.2% occupancy.
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Core FFO per Share: $1.04 for Q1 2025, a 3.1% increase year-over-year.
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AFFO per Share: $1.06 for Q1 2025, a 3% increase year-over-year.
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Full Year AFFO Guidance: Raised to $4.27 to $4.30 per share, over 3.5% growth at midpoint.
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Dividend: Monthly cash dividends of $0.253 per share for Q1 2025, equating to an annualized dividend of $3.04 per share.
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Dividend Payout Ratio: 72% of AFFO per share for Q1 2025.
Release Date: April 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Agree Realty Corp (NYSE:ADC) invested over $375 million across its three external growth platforms, marking the largest quarter of investment volume since Q3 2023.
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The company has a strong liquidity position with $1.9 billion available, including $1.2 billion of hedge capital, providing flexibility and protection against market volatility.
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ADC raised $181 million of forward equity via its ATM program, maintaining a robust balance sheet with no material debt maturities until 2028.
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The company increased its investment guidance range for 2025 from $1.1 billion-$1.3 billion to $1.3 billion-$1.5 billion, reflecting a 47% increase over last year's investment volume.
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ADC's portfolio occupancy remained solid at 99.2%, with a focus on recession-resistant retailers that have adapted to omnichannel strategies.
Negative Points
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The macroeconomic environment remains volatile and unpredictable, posing challenges for future growth and stability.
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Despite raising investment guidance, the AFFO per share guidance was only increased by $0.01, partly due to anticipated treasury stock method dilution.
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The company faces potential impacts from tariffs, although it believes its portfolio is well-positioned to withstand these challenges.
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ADC's exposure to pharmacy and dollar stores has decreased, reflecting concerns about overbuilding and market saturation in these sectors.
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The company experienced a temporary dip in occupancy due to issues with former Big Lots locations, although resolutions are underway.
Q & A Highlights
Q: Joey, you raised investment guidance by $200 million. Were there other detracting items affecting AFFO guidance? A: Joey Agree, President and CEO, explained that the only offset to the investment increase was the anticipated treasury stock method dilution, which was conservatively included in the guidance. Peter Coughenour, CFO, added that the incremental $200 million investment should translate to about $1 million of incremental earnings, or about $0.01, and the treasury stock method dilution is expected to be closer to $0.02.