Agree Realty Financial Analysis and Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Should l Buy ADC?
Source: Benzinga
- Leverage Analysis: Agree Realty's net debt-to-recurring EBITDA ratio stands at 3.5x, increasing to 5.1x when excluding unsettled forward equity, which, while still within the investment-grade REIT range, indicates a cautious approach to capital management compared to peers operating at 5.0-6.0x, reflecting approximately $900 million in unsettled forward equity.
- AFFO Payout Ratio: The company reported an AFFO per share of $1.10 in Q3, marking a 7.2% year-over-year increase, with a payout ratio of about 70%, allowing ADC to retain more internal capital than many peers with mid-70s to low-80s ratios, showcasing its capital management strength.
- Strong Credit Ratings: Fitch assigned ADC an A- rating, while Moody's and S&P rated it Baa1 and BBB+, respectively, indicating that the company holds a rare investment-grade rating in the net lease sector, with its BBB+ rating still two notches above the investment-grade cliff, underscoring its financial stability.
- 2026 Investment Guidance: The company has set its 2026 investment guidance at $1.25 to $1.50 billion, which is a reduction from the $1.55 billion deployed in 2025, reflecting management's cautious stance regarding market conditions and pricing, indicating a strategic restraint in capital deployment.
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Analyst Views on ADC
Wall Street analysts forecast ADC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ADC is 81.32 USD with a low forecast of 75.00 USD and a high forecast of 90.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
9 Buy
3 Hold
0 Sell
Strong Buy
Current: 76.130
Low
75.00
Averages
81.32
High
90.00
Current: 76.130
Low
75.00
Averages
81.32
High
90.00
About ADC
Agree Realty Corporation is an integrated real estate investment trust (REIT) primarily focused on the ownership, acquisition, development and management of retail properties net-leased to tenants. The Company's assets are held by, and all of its operations are conducted through, directly or indirectly, the operating partnership, of which the Company is the sole general partner. Its portfolio consists of over 2,370 properties located in 50 states and totaling approximately 48.8 million square feet of gross leasable area (GLA). Its portfolio of properties is located in Texas, Ohio, Florida, Michigan, Illinois, North Carolina, New Jersey, Pennsylvania, California, New York, Georgia, Virginia, Connecticut, Wisconsin and others. Its tenants include Walmart, Dollar General, Tractor Supply, Best Buy, Dollar Tree, TJX Companies, O'Reilly Auto Parts, CVS, Kroger, Lowe's, Hobby Lobby, Burlington, Sherwin-Williams, Sunbelt Rentals, Wawa, Home Depot, TBC Corporation, Gerber Collision, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Agree Realty Financial Analysis and Outlook
- Leverage Analysis: Agree Realty's net debt-to-recurring EBITDA ratio stands at 3.5x, increasing to 5.1x when excluding unsettled forward equity, which, while still within the investment-grade REIT range, indicates a cautious approach to capital management compared to peers operating at 5.0-6.0x, reflecting approximately $900 million in unsettled forward equity.
- AFFO Payout Ratio: The company reported an AFFO per share of $1.10 in Q3, marking a 7.2% year-over-year increase, with a payout ratio of about 70%, allowing ADC to retain more internal capital than many peers with mid-70s to low-80s ratios, showcasing its capital management strength.
- Strong Credit Ratings: Fitch assigned ADC an A- rating, while Moody's and S&P rated it Baa1 and BBB+, respectively, indicating that the company holds a rare investment-grade rating in the net lease sector, with its BBB+ rating still two notches above the investment-grade cliff, underscoring its financial stability.
- 2026 Investment Guidance: The company has set its 2026 investment guidance at $1.25 to $1.50 billion, which is a reduction from the $1.55 billion deployed in 2025, reflecting management's cautious stance regarding market conditions and pricing, indicating a strategic restraint in capital deployment.
See More
Salesforce and Others Executives' Transactions: Total Value Exceeds $15 Million
- Salesforce Executive Transaction: Salesforce Director Neelie Kroess sold 3,893 shares at an average price of $238.70, totaling approximately $929,276, increasing her holdings to 7,299 shares, indicating executive confidence in the company's future.
- Costco Executive Purchase: Costco Executive Vice President James Klauer purchased 1,500 shares at $939 each for a total investment of about $1.41 million, raising his holdings to 44,935 shares, reflecting optimism about the company's ongoing growth.
- GameStop Executive Sell-off: GameStop General Counsel Mark Haymond Robinson sold 12,200 shares at $21.00 each for a total value of $256,248, reducing his holdings to 105,155 shares, which may indicate uncertainty about the company's future prospects.
- Credo Technology Executive Sale: Credo Technology Director Sylvia Acevedo sold 2,200 shares within a price range of $156.25 to $162.11, totaling $350,196, leaving her with 18,545 shares, demonstrating a strategy to respond to market volatility.
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Real Estate Stocks See Positive EPS Revisions, AAT and Others Rated A+
- Analyst Confidence Boost: American Assets Trust (AAT) received an A+ EPS revision grade with a Quant rating of 3.22, indicating strong analyst confidence in its future performance, which could drive stock price increases.
- Market Expectations Rise: Agree Realty Corporation (ADC) also earned an A+ rating with a Quant score of 4.66, suggesting analysts anticipate its earnings will exceed expectations, potentially attracting more investor interest.
- Earnings Potential Revealed: Both First Industrial Realty Trust (FR) and Getty Realty Corp (GTY) received A+ ratings, with Quant scores of 3.44 and 4.75 respectively, indicating robust performance in profitability that may elicit positive market reactions.
- Industry Leaders: Postal Realty Trust (PSTL) and Strawberry Fields REIT (STRW) also achieved A+ ratings, with Quant scores of 4.88 and 3.47, reflecting their competitive advantages in the real estate sector, likely promoting further stock price increases.
See More
UniFirst Declares $0.365 Dividend, Kaiser Aluminum Announces $0.77 Dividend
- UniFirst Dividend Announcement: UniFirst's Board of Directors declared a quarterly cash dividend of $0.365 per share, payable on March 27, 2026, reflecting the company's ongoing profitability and commitment to shareholder returns.
- Kaiser Aluminum Dividend Declaration: Kaiser Aluminum announced a cash dividend of $0.77 per share, payable on February 13, 2026, demonstrating the company's strong performance in maintaining stable cash flow and shareholder returns.
- Agree Realty Dividend Increase: Agree Realty declared a monthly cash dividend of $0.262, with an annualized amount rising to $3.144, a 3.6% increase from Q1 2025, showcasing the company's focus on shareholder value and confidence in profit growth.
- Labcorp Dividend Payment: Labcorp Holdings announced a cash dividend of $0.72 per share, payable on March 12, 2026, indicating its robust financial performance in the innovative laboratory services sector.
See More
Agree Realty (ADC) Declares $0.262 Monthly Dividend with 4.41% Yield
- Dividend Declaration: Agree Realty has declared a monthly dividend of $0.262 per share, consistent with previous distributions, demonstrating the company's ongoing ability to maintain stable cash flows and bolster investor confidence.
- Yield Performance: The forward yield of 4.41% not only attracts income-seeking investors but also reflects the company's competitiveness in the current market environment, positioning it favorably among peers.
- Payment Schedule: The dividend is payable on February 13, with a record date of January 30 and an ex-dividend date also on January 30, ensuring shareholders receive timely returns and enhancing shareholder satisfaction.
- Market Performance: Despite a quarter-over-quarter decline in investment volume, Agree Realty's dividend policy and stable yield performance continue to make it competitive among retail REITs, drawing interest from risk-averse investors.
See More
Realty Income Attracts Conservative Investors with Monthly Dividends
- Stable Income: Realty Income attracts conservative investors with a high dividend yield of 5.6%, and its monthly dividends have increased for 30 consecutive years, demonstrating strong financial stability and long-term investment value.
- Growth Potential: Agree Realty, with a market cap of approximately $8 billion, shows a higher growth potential with a 6% annualized dividend growth rate over the past decade, making it suitable for investors seeking capital appreciation despite its smaller size compared to Realty Income.
- High Risk-High Reward: EPR Properties offers the highest yield at 7%, having reinstated its dividend after a pandemic-related cut, indicating its appeal for aggressive investors willing to take on risk despite ongoing challenges in its portfolio.
- Portfolio Pairing: Combining Realty Income and Agree Realty in a portfolio not only provides stable cash flow but also capital appreciation potential through Agree Realty's growth, creating a favorable risk-reward balance.
See More
Agree Realty Financial Analysis and Outlook
- Leverage Analysis: Agree Realty's net debt-to-recurring EBITDA ratio stands at 3.5x, increasing to 5.1x when excluding unsettled forward equity, which, while still within the investment-grade REIT range, indicates a cautious approach to capital management compared to peers operating at 5.0-6.0x, reflecting approximately $900 million in unsettled forward equity.
- AFFO Payout Ratio: The company reported an AFFO per share of $1.10 in Q3, marking a 7.2% year-over-year increase, with a payout ratio of about 70%, allowing ADC to retain more internal capital than many peers with mid-70s to low-80s ratios, showcasing its capital management strength.
- Strong Credit Ratings: Fitch assigned ADC an A- rating, while Moody's and S&P rated it Baa1 and BBB+, respectively, indicating that the company holds a rare investment-grade rating in the net lease sector, with its BBB+ rating still two notches above the investment-grade cliff, underscoring its financial stability.
- 2026 Investment Guidance: The company has set its 2026 investment guidance at $1.25 to $1.50 billion, which is a reduction from the $1.55 billion deployed in 2025, reflecting management's cautious stance regarding market conditions and pricing, indicating a strategic restraint in capital deployment.
See More
Salesforce and Others Executives' Transactions: Total Value Exceeds $15 Million
- Salesforce Executive Transaction: Salesforce Director Neelie Kroess sold 3,893 shares at an average price of $238.70, totaling approximately $929,276, increasing her holdings to 7,299 shares, indicating executive confidence in the company's future.
- Costco Executive Purchase: Costco Executive Vice President James Klauer purchased 1,500 shares at $939 each for a total investment of about $1.41 million, raising his holdings to 44,935 shares, reflecting optimism about the company's ongoing growth.
- GameStop Executive Sell-off: GameStop General Counsel Mark Haymond Robinson sold 12,200 shares at $21.00 each for a total value of $256,248, reducing his holdings to 105,155 shares, which may indicate uncertainty about the company's future prospects.
- Credo Technology Executive Sale: Credo Technology Director Sylvia Acevedo sold 2,200 shares within a price range of $156.25 to $162.11, totaling $350,196, leaving her with 18,545 shares, demonstrating a strategy to respond to market volatility.
See More
Real Estate Stocks See Positive EPS Revisions, AAT and Others Rated A+
- Analyst Confidence Boost: American Assets Trust (AAT) received an A+ EPS revision grade with a Quant rating of 3.22, indicating strong analyst confidence in its future performance, which could drive stock price increases.
- Market Expectations Rise: Agree Realty Corporation (ADC) also earned an A+ rating with a Quant score of 4.66, suggesting analysts anticipate its earnings will exceed expectations, potentially attracting more investor interest.
- Earnings Potential Revealed: Both First Industrial Realty Trust (FR) and Getty Realty Corp (GTY) received A+ ratings, with Quant scores of 3.44 and 4.75 respectively, indicating robust performance in profitability that may elicit positive market reactions.
- Industry Leaders: Postal Realty Trust (PSTL) and Strawberry Fields REIT (STRW) also achieved A+ ratings, with Quant scores of 4.88 and 3.47, reflecting their competitive advantages in the real estate sector, likely promoting further stock price increases.
See More
UniFirst Declares $0.365 Dividend, Kaiser Aluminum Announces $0.77 Dividend
- UniFirst Dividend Announcement: UniFirst's Board of Directors declared a quarterly cash dividend of $0.365 per share, payable on March 27, 2026, reflecting the company's ongoing profitability and commitment to shareholder returns.
- Kaiser Aluminum Dividend Declaration: Kaiser Aluminum announced a cash dividend of $0.77 per share, payable on February 13, 2026, demonstrating the company's strong performance in maintaining stable cash flow and shareholder returns.
- Agree Realty Dividend Increase: Agree Realty declared a monthly cash dividend of $0.262, with an annualized amount rising to $3.144, a 3.6% increase from Q1 2025, showcasing the company's focus on shareholder value and confidence in profit growth.
- Labcorp Dividend Payment: Labcorp Holdings announced a cash dividend of $0.72 per share, payable on March 12, 2026, indicating its robust financial performance in the innovative laboratory services sector.
See More
Agree Realty (ADC) Declares $0.262 Monthly Dividend with 4.41% Yield
- Dividend Declaration: Agree Realty has declared a monthly dividend of $0.262 per share, consistent with previous distributions, demonstrating the company's ongoing ability to maintain stable cash flows and bolster investor confidence.
- Yield Performance: The forward yield of 4.41% not only attracts income-seeking investors but also reflects the company's competitiveness in the current market environment, positioning it favorably among peers.
- Payment Schedule: The dividend is payable on February 13, with a record date of January 30 and an ex-dividend date also on January 30, ensuring shareholders receive timely returns and enhancing shareholder satisfaction.
- Market Performance: Despite a quarter-over-quarter decline in investment volume, Agree Realty's dividend policy and stable yield performance continue to make it competitive among retail REITs, drawing interest from risk-averse investors.
See More
Realty Income Attracts Conservative Investors with Monthly Dividends
- Stable Income: Realty Income attracts conservative investors with a high dividend yield of 5.6%, and its monthly dividends have increased for 30 consecutive years, demonstrating strong financial stability and long-term investment value.
- Growth Potential: Agree Realty, with a market cap of approximately $8 billion, shows a higher growth potential with a 6% annualized dividend growth rate over the past decade, making it suitable for investors seeking capital appreciation despite its smaller size compared to Realty Income.
- High Risk-High Reward: EPR Properties offers the highest yield at 7%, having reinstated its dividend after a pandemic-related cut, indicating its appeal for aggressive investors willing to take on risk despite ongoing challenges in its portfolio.
- Portfolio Pairing: Combining Realty Income and Agree Realty in a portfolio not only provides stable cash flow but also capital appreciation potential through Agree Realty's growth, creating a favorable risk-reward balance.
See More
