Agree Realty(NYSE) ADC

Agree Realty helps big retail companies find and use the right buildings for their stores. It buys and develops properties then leases them to well-known national businesses. These stores typically sell everyday items like groceries and tools that people buy in person.

What They Own

• Retail Properties: Real estate leased to national and regional retailers under net lease agreements; accounted for 99.7% of the portfolio's occupancy across 55.5 million square feet as of December 31, 2025.
• Development Projects: New buildings created specifically for a single tenant's needs, such as build-to-suit projects for leading retail operators.
• Developer Funding Platform: Financial and construction support for other developers' projects that the company eventually owns.

Recent Strategic Moves

• Completed $1.57 billion in total investments during 2025, including the acquisition of 305 properties and 21 completed developments.
• Established a $625 million commercial paper program in 2025 to issue short-term unsecured debt for financing needs.
• Sold 22 assets and land parcels in 2025 for net proceeds of $42.1 million, resulting in a gain of $5.4 million.
• Closed a $350 million unsecured term loan in May 2025 with an option to increase the amount to $500 million by 2031.

Why the Business Model Works

The company focuses on recession-resistant sectors like grocery and home improvement, where physical stores remain vital for online shopping pickups and returns. Most leases are net leases, meaning tenants pay for taxes, insurance, and maintenance instead of the landlord.

By the Numbers

• Revenue reached $190.5 million in Q4 2025, up 18.5% from the previous year.
• Net income rose to $56 million in Q4 2025, a 23.9% increase compared to Q4 2024.
• Operating cash flow hit $111.3 million in Q4 2025, up 21.8% year-over-year.
• The company grew its monthly dividend twice in 2025, ending the year with an annualized payout of $3.14 per share.

Bottom Line

Agree Realty has grown from a regional developer into a national property owner with 2,674 buildings across all 50 states. Its focus on high-quality tenants and a conservative debt structure supports steady expansion in the retail real estate market.