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Agree Realty Corporation Reports First Quarter 2026 Results

Agree Realty Corporation (NYSE: ADC) (the “Company”) today announced results for the quarter ended March 31, 2026. All per share amounts included herein are on a diluted per common share basis unless otherwise stated.

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First Quarter 2026 Financial and Operating Highlights:
  • Invested approximately $424 million in 100 retail net lease properties
  • 15 development or Developer Funding Platform ("DFP") projects completed or under construction with anticipated total costs of approximately $112 million
  • Net Income per share attributable to common stockholders increased 19.1% to $0.50
  • Core Funds from Operations (“Core FFO”) per share increased 8.1% to $1.13
  • Adjusted Funds from Operations (“AFFO”) per share increased 7.9% to $1.14
  • Declared an increased monthly dividend of $0.267 per common share for April, a 4.3% year-over-year increase
  • Sold 8.7 million shares of common stock via the forward component of the Company's at-the-market equity ("ATM") program for anticipated net proceeds of approximately $658 million
  • Balance sheet well positioned at 3.2 times proforma net debt to recurring EBITDA; 5.1 times excluding unsettled forward equity
  • Ended the quarter with approximately $2.3 billion of liquidity including availability on the revolving credit facility, outstanding forward equity, undrawn term loan capacity, and cash on hand

Financial Results

Net Income Attributable to Common Stockholders

Net Income for the three months ended March 31, 2026 increased 33.4% to $60.2 million, compared to $45.1 million for the comparable period in 2025. Net Income per share for the three months ended March 31st increased 19.1% to $0.50, compared to $0.42 for the comparable period in 2025.

Core FFO

Core FFO for the three months ended March 31, 2026 increased 21.0% to $136.3 million, compared to $112.7 million for the comparable period in 2025. Core FFO per share for the three months ended March 31st increased 8.1% to $1.13, compared to $1.04 for the comparable period in 2025.

AFFO

AFFO for the three months ended March 31, 2026 increased 20.7% to $137.6 million, compared to $114.0 million for the comparable period in 2025. AFFO per share for the three months ended March 31st increased 7.9% to $1.14, compared to $1.06 for the comparable period in 2025.

Dividend

In the first quarter, the Company declared monthly cash dividends of $0.262 per common share for each of January, February and March 2026. The monthly dividends declared during the first quarter reflect an annualized dividend amount of $3.144 per common share, representing a 3.6% increase over the annualized dividend amount of $3.036 per common share from the first quarter of 2025. The dividends represent payout ratios of approximately 70% of Core FFO per share and 69% of AFFO per share, respectively.

Subsequent to quarter end, the Company declared an increased monthly cash dividend of $0.267 per common share for April 2026. The April monthly dividend reflects an annualized dividend amount of $3.204 per common share, representing a 4.3% increase over the annualized dividend amount of $3.072 per common share from the second quarter of 2025. The April dividend is payable on May 14, 2026 to stockholders of record at the close of business on April 30, 2026.

Additionally, subsequent to quarter end, the Company declared a monthly cash dividend on its 4.25% Series A Cumulative Redeemable Preferred Stock of $0.08854 per depositary share, which is equivalent to $1.0625 per annum. The dividend is payable on May 1, 2026 to stockholders of record at the close of business on April 21, 2026.

Earnings Guidance

The table below provides estimates for significant components of our 2026 earnings guidance.

 

 

Prior 2026

 

Revised 2026

 

 

Guidance

 

Guidance

AFFO per share(1)(2)

 

$4.54 to $4.58

 

$4.54 to $4.58

Investment volume

 

$1.4 to $1.6 billion

 

$1.4 to $1.6 billion

Disposition volume

 

$25 to $75 million

 

$25 to $75 million

General and administrative expenses (% of adjusted revenue)(3)(4)

 

5.3% to 5.6%

 

5.3% to 5.6%

Non-reimbursable real estate expenses (% of adjusted revenue)(3)

 

1.0% to 1.5%

 

1.0% to 1.5%

Income and other tax expense

 

$2 to $3 million

 

$2 to $2.5 million

Treasury stock method dilution(5)

 

Approximately $0.01

 

$0.02 to $0.04

 

The Company’s 2026 guidance is subject to risks and uncertainties more fully described in this press release and in the Company’s filings with the Securities and Exchange Commission (the “SEC”).

(1)

The Company does not provide guidance with respect to the most directly comparable GAAP financial measure or provide reconciliations to GAAP from its forward-looking non-GAAP financial measure of AFFO per share guidance due to the inherent difficulty of forecasting the effect, timing and significance of certain amounts in the reconciliation that would be required by Item 10(e)(1)(i)(B) of Regulation S-K. Examples of these amounts include impairments of assets, gains and losses from sales of assets, and depreciation and amortization from new acquisitions or developments. In addition, certain non-recurring items may also significantly affect net income but are generally adjusted for in AFFO. Based on our historical experience, the dollar amounts of these items could be significant and could have a material impact on the Company’s GAAP results for the guidance period.

(2)

The Company's AFFO per share guidance utilizes the current forward SOFR curve to forecast interest expense related to any outstanding commercial paper notes and revolver borrowings during the year.

(3)

Adjusted revenue equates to “Total Revenues” as presented in our consolidated statements of operations and comprehensive income, excluding the amortization of above and below market lease intangibles.

(4)

Cash G&A expense is expected to be in a range of 3.7% to 4.0% of adjusted revenue. Cash G&A is defined as “General and administrative” expenses as presented in our consolidated statements of operations and comprehensive income, less stock-based compensation expense.

(5)

Represents the estimated dilutive impact of the Company’s outstanding forward equity calculated in accordance with the treasury stock method, which is included in the AFFO per share guidance range.

CEO Comments

“Our first quarter results reflect a strong start to the year. Our balance sheet is fortified, our pipeline is strong and our Team is laser focused," said Joey Agree, President and Chief Executive Officer. “We are extremely well-positioned to execute on our Operating Strategy for the remainder of the year and beyond.”

Portfolio Update

As of March 31, 2026, the Company’s portfolio consisted of 2,756 properties located in all 50 states and contained approximately 57.5 million square feet of gross leasable area. At quarter end, the portfolio was approximately 99.7% leased, had a weighted-average lease term of approximately 7.8 years, and generated approximately 65.4% of annualized base rents from investment grade retail tenants.

Ground Lease Portfolio

During the first quarter, the Company acquired nine ground leases for an aggregate purchase price of approximately $28.4 million, representing 7.5% of annualized base rents acquired.

As of March 31, 2026, the Company’s ground lease portfolio consisted of 261 leases located in 39 states and totaled approximately 7.0 million square feet of gross leasable area. Properties ground leased to tenants represented 10.1% of annualized base rents.

At quarter end, the ground lease portfolio was fully occupied, had a weighted-average lease term of approximately 9.1 years, and generated 84.0% of annualized base rents from investment grade retail tenants.

Acquisitions

Total acquisition volume for the first quarter was approximately $402.5 million and included 85 properties net leased to leading retailers operating in sectors including auto parts, grocery stores, home improvement, farm and rural supply, convenience stores, and crafts and novelties. The properties are located in 32 states and leased to tenants operating in 21 sectors.

The properties were acquired at a weighted-average capitalization rate of 7.1% and had a weighted-average lease term of approximately 11.3 years. Approximately 59.3% of annualized base rents acquired were generated from investment grade retail tenants.

Dispositions

During the first quarter, the Company sold seven properties for gross proceeds of approximately $10.6 million. The dispositions were completed at a weighted-average capitalization rate of 6.8%.

The Company's disposition guidance for 2026 is between $25 million and $75 million.

Development and Developer Funding Platform

During the first quarter, the Company commenced two development or DFP projects, with total anticipated costs of approximately $18.0 million. Construction continued during the quarter on nine projects with anticipated costs totaling approximately $71.4 million. The Company completed four projects during the quarter with total costs of approximately $22.5 million.

For the three months ended March 31, 2026, the Company had 15 development or DFP projects completed or under construction with anticipated total costs of approximately $112.0 million. The projects are leased to leading retailers including TJX Companies, Burlington, 7-Eleven, Boot Barn, Starbucks, Gerber Collision, and Sunbelt Rentals.

The following table presents estimated costs for the Company's active or completed development and DFP projects for the three months ended March 31, 2026:

 

 

 

 

 

 

 

 

Anticipated

Anticipated

 

Number of

 

Costs Funded

 

Remaining

 

Total Project

Quarter of Delivery

 

Projects

 

to Date

 

Funding Costs

 

Costs

Q1 2026

 

4

 

22,534

 

—

 

22,534

Q2 2026

 

5

 

 

30,375

 

 

11,814

 

 

42,189

Q3 2026

 

2

 

 

8,855

 

 

4,495

 

 

13,350

Q4 2026

 

2

 

 

4,653

 

 

11,340

 

 

15,993

Q1 2027

 

1

 

 

3,312

 

 

7,247

 

 

10,559

Q2 2027

 

1

 

 

3,327

 

 

4,050

 

 

7,377

Total

 

15

 

$

73,056

 

$

38,946

 

$

112,002
 

Development and DFP project costs are in thousands; any differences are the result of rounding. Costs Funded to Date may include adjustments related to completed projects to arrive at the correct Anticipated Total Project Costs.

Leasing Activity and Expirations

During the first quarter, the Company executed new leases, extensions or options on approximately 876,000 square feet of gross leasable area throughout the existing portfolio. Notable new leases, extensions or options included a 100,000-square foot Walmart Supercenter in Whitewater, Wisconsin, a 100,000-square foot Home Depot in Orange, Connecticut, and a 20,000-square foot TJ Maxx in Mason City, Iowa.

As of March 31, 2026, the Company’s 2026 lease maturities represented 0.9% of annualized base rents. The following table presents contractual lease expirations within the Company’s portfolio as of March 31, 2026, assuming no tenants exercise renewal options:

 

 

 

 

Annualized Base Rent(1)

 

Gross Leasable Area

Year

 

Number of

Leases

 

Dollars

 

% of

Total

 

Square Feet

 

% of

Total

2026

 

29

 

6,567

 

0.9

 

600,160

 

1.0

2027

 

155

 

 

33,140

 

4.3

 

3,081,500

 

5.4

2028

 

181

 

 

47,545

 

6.2

 

4,172,420

 

7.3

2029

 

224

 

 

69,230

 

9.1

 

6,505,470

 

11.4

2030

 

344

 

 

75,963

 

9.9

 

6,382,140

 

11.1

2031

 

270

 

 

68,409

 

9.0

 

5,357,160

 

9.3

2032

 

263

 

 

58,262

 

7.6

 

4,184,540

 

7.3

2033

 

234

 

 

53,798

 

7.0

 

4,071,160

 

7.1

2034

 

238

 

 

54,717

 

7.2

 

3,687,600

 

6.4

2035

 

221

 

 

59,764

 

7.8

 

4,127,080

 

7.2

Thereafter

 

827

 

 

236,454

 

31.0

 

15,138,850

 

26.5

Total Portfolio

 

2,986

 

$

763,849

 

100.0

%

 

57,308,080

 

100.0

%

 

The contractual lease expirations presented above exclude the effect of replacement tenant leases that had been executed as of March 31, 2026, but that had not yet commenced. Annualized Base Rent and gross leasable area (square feet) are in thousands; any differences are the result of rounding.

(1)

Refer to the Glossary for the Company's definition of Annualized Base Rent.

Top Tenants

The following table presents annualized base rents for all tenants that represent 1.5% or greater of the Company’s total annualized base rent as of March 31, 2026:

 

 

Annualized

 

Percent of

Tenant

 

Base Rent(1)

 

Annualized Base Rent

Walmart

 

43,786

 

5.7

Tractor Supply

 

 

36,230

 

4.7

Dollar General

 

 

29,081

 

3.8

Hobby Lobby

 

 

25,818

 

3.4

TJX Companies

 

 

23,125

 

3.0

O'Reilly Auto Parts

 

 

22,806

 

3.0

Best Buy

 

 

22,133

 

2.9

CVS

 

 

21,501

 

2.8

Gerber Collision

 

 

21,323

 

2.8

Kroger

 

 

21,021

 

2.8

Lowe's

 

 

20,974

 

2.7

7-Eleven

 

 

19,547

 

2.6

Sunbelt Rentals

 

 

17,224

 

2.3

Sherwin-Williams

 

 

16,315

 

2.1

Burlington

 

 

15,545

 

2.0

Home Depot

 

 

14,948

 

2.0

Wawa

 

 

12,813

 

1.7

Dollar Tree

 

 

12,301

 

1.6

Genuine Parts Company

 

 

12,172

 

1.6

Other(2)

 

 

355,186

 

46.5

Total Portfolio

 

$

763,849

 

100.0

%

 

Annualized Base Rent is in thousands; any differences are the result of rounding.

(1)

Refer to the Glossary for the Company's definition of Annualized Base Rent.

(2)

Includes tenants generating less than 1.5% of Annualized Base Rent.

Retail Sectors

The following table presents annualized base rents for all the Company’s retail sectors as of March 31, 2026:

 

 

Annualized

 

Percent of

Sector

 

Base Rent(1)

 

Annualized Base Rent

Grocery Stores

 

79,291

 

10.4

Home Improvement

 

 

69,969

 

9.2

Convenience Stores

 

 

59,583

 

7.8

Tire & Auto Service

 

 

58,854

 

7.7

Auto Parts

 

 

50,045

 

6.5

Dollar Stores

 

 

47,813

 

6.3

Off-Price Retail

 

 

45,176

 

5.9

Farm And Rural Supply

 

 

38,039

 

5.0

General Merchandise

 

 

36,643

 

4.8

Crafts And Novelties

 

 

28,211

 

3.7

Pharmacy

 

 

26,453

 

3.5

Consumer Electronics

 

 

26,239

 

3.4

Discount Stores

 

 

21,417

 

2.8

Health Services

 

 

18,976

 

2.5

Warehouse Clubs

 

 

18,379

 

2.4

Equipment Rental

 

 

18,279

 

2.4

Restaurants - Quick Service

 

 

16,973

 

2.2

Health & Fitness

 

 

16,522

 

2.2

Dealerships

 

 

15,078

 

2.0

Sporting Goods

 

 

13,814

 

1.8

Financial Services

 

 

10,285

 

1.3

Specialty Retail

 

 

9,259

 

1.2

Restaurants - Casual Dining

 

 

7,386

 

1.0

Shoes

 

 

6,339

 

0.8

Home Furnishings

 

 

5,212

 

0.7

Pet Supplies

 

 

4,813

 

0.6

Theaters

 

 

3,976

 

0.5

Beauty And Cosmetics

 

 

3,892

 

0.5

Entertainment Retail

 

 

2,642

 

0.3

Apparel

 

 

2,402

 

0.3

Miscellaneous

 

 

1,265

 

0.2

Office Supplies

 

 

624

 

0.1

Total Portfolio

 

$

763,849

 

100.0

%

 

Annualized Base Rent is in thousands; any differences are the result of rounding.

(1)

Refer to the Glossary for the Company's definition of Annualized Base Rent.

Geographic Diversification

The following table presents annualized base rents for all states that represent 1.5% or greater of the Company’s total annualized base rent as of March 31, 2026:

 

 

Annualized

 

Percent of

State

 

Base Rent(1)

 

Annualized Base Rent

Texas

 

54,726

 

7.2

Illinois

 

 

46,303

 

6.1

Ohio

 

 

39,843

 

5.2

Michigan

 

 

38,190

 

5.0

Pennsylvania

 

 

37,279

 

4.9

Florida

 

 

36,938

 

4.8

New York

 

 

36,295

 

4.8

North Carolina

 

 

35,448

 

4.6

California

 

 

32,579

 

4.3

Georgia

 

 

31,409

 

4.1

New Jersey

 

 

26,609

 

3.5

Missouri

 

 

21,168

 

2.8

Louisiana

 

 

20,990

 

2.7

Wisconsin

 

 

20,503

 

2.7

Virginia

 

 

18,585

 

2.4

Mississippi

 

 

18,248

 

2.4

South Carolina

 

 

17,684

 

2.3

Minnesota

 

 

17,370

 

2.3

Kansas

 

 

16,090

 

2.1

Indiana

 

 

15,311

 

2.0

Connecticut

 

 

14,777

 

1.9

Alabama

 

 

14,461

 

1.9

Tennessee

 

 

13,950

 

1.8

Massachusetts

 

 

13,607

 

1.8

Oklahoma

 

 

11,727

 

1.5

Other(2)

 

 

113,759

 

14.9

Total Portfolio

 

$

763,849

 

100.0

%

 

Annualized Base Rent is in thousands; any differences are the result of rounding.

(1)

Refer to the Glossary for the Company's definition of Annualized Base Rent.

(2)

Includes states generating less than 1.5% of Annualized Base Rent.

Capital Markets, Liquidity and Balance Sheet

Capital Markets

In March 2026, the Company drew $250.0 million under the $350.0 million 2031 Unsecured Term Loan. Including the impact of forward starting swaps, the all-in interest rate on the 2031 Unsecured Term Loan is fixed at 4.02% until maturity in May 2031. The remaining $100.0 million is available to be drawn at the Company's election until November 2026.

During the first quarter, the Company entered into forward sale agreements in connection with its ATM program to sell an aggregate of 8.7 million shares of common stock for anticipated net proceeds of $658.0 million.

The following table presents the Company’s outstanding forward equity offerings as of March 31, 2026:

 

 

 

 

 

 

 

 

 

 

Anticipated Net

Forward Equity

 

Shares

 

Shares

 

Shares

 

Net Proceeds

 

Proceeds

Offerings

 

Sold

 

Settled

 

Remaining

 

Received

 

Remaining

Q4 2024 ATM Forward Offerings

 

739,013

 

570,736

 

168,277

 

42,200,880

 

12,795,127

Q1 2025 ATM Forward Offerings

 

2,408,201

 

—

 

2,408,201

 

 

—

 

 

180,105,715

Q2 2025 ATM Forward Offerings

 

362,021

 

—

 

362,021

 

 

—

 

 

27,193,128

April 2025 Forward Offering

 

5,175,000

 

—

 

5,175,000

 

 

—

 

 

384,490,080

Q4 2025 ATM Forward Offerings

 

1,505,746

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