Agree Realty (ADC) Q3 2024 earnings summary

Executive summary

• Portfolio consists of 2,271 retail properties across 49 states, totaling 47.2 million sq. ft., 99.6% leased, with 67.5% investment grade tenants and a $10.8B value as of September 30, 2024.

• Net income attributable to common stockholders rose 7% year-over-year to $42.5 million for Q3 2024 and 17% to $138.4 million for the nine months ended September 30, 2024.

• Raised 2024 acquisition guidance to approximately $850 million and increased AFFO per share guidance to $4.12–$4.14, reflecting 4.6% year-over-year growth at midpoint.

• Achieved record liquidity of over $1.9 billion, including $469–$470 million in forward equity raised in Q3 and $725 million outstanding.

• S&P upgraded credit rating to BBB+ with a stable outlook in 2024.

Financial highlights

• Q3 2024 net income attributable to common stockholders was $42.5 million ($0.42 per diluted share), up 7.2% year-over-year.

• Core FFO per share for Q3 was $1.01, up 2.2% year-over-year; AFFO per share for Q3 was $1.03, up 2.8%.

• Q3 2024 rental income increased 13% year-over-year to $154.3 million.

• Monthly cash dividends of $0.25 per share declared for Q3, with a payout ratio of 73% of AFFO per share; dividend increased to $0.253 per share in October 2024, annualized to $3.04.

• Interest expense rose 39% year-over-year in Q3 to $28.9 million, reflecting higher borrowings for acquisitions and development.

Outlook and guidance

• 2024 AFFO per share guidance raised to $4.12–$4.14, reflecting 4.6% year-over-year growth at midpoint.

• Acquisition volume guidance increased to approximately $850 million for 2024.

• Disposition guidance raised to $70–$100 million for 2024.

• Q4 expected to be the largest and highest quality acquisition quarter of the year, with a focus on investment-grade tenants.

• Guidance incorporates treasury stock method dilution of over $0.01 per share in Q4.