Agree Realty Stock Earnings Reports

Agree Realty reported a strong start to 2026 with aggressive external growth and a fortified balance sheet. In Q1 the company invested nearly $425 million across 100 properties (including $403 million of acquisitions, its largest quarterly acquisition volume since 2022) at a weighted average cap rate of 7.1% and a weighted average lease term of 11.3 years. Portfolio metrics remain healthy: occupancy 99.7%, investment-grade exposure >65%, pharmacy exposure down to 3.5%, and 2,756 properties across all 50 states. Capital position: $2.3 billion of total liquidity, ~$1.6 billion of hedged capital (including a record $1.4 billion of outstanding forward equity), pro forma net debt to recurring EBITDA ~3.2x, and no material debt maturities until 2028. Q1 operating results: core FFO per share $1.13 (+8.1% YoY), AFFO per share $1.14 (+7.9% YoY). Management reiterated full-year 2026 AFFO guidance of $4.54–$4.58 (midpoint ≈ 5.4% growth). Dividends: declared $0.262 monthly for Jan–Mar and increased to $0.267/month for April (annualized >$3.20), with a Q1 AFFO payout ratio ~69% and an expected >$140M free cash flow after dividends for the year. Development and DFP activity is ramping: several projects commenced or to commence in Q2–Q3 with an intermediate target of ~$250M of commencements per year. Management emphasized disciplined underwriting, opportunistic dispositions (sold 7 properties for ~$11M), and improving percentage rent collection. Key risks/caveats called out: ongoing macro/geopolitical uncertainty, potential treasury-stock-method dilution from forward equity (guidance impact ~$0.02–$0.04 on AFFO depending on share price), and typical leasing/credit loss assumptions in guidance (25–50 bps).