Agree Realty launches 4.5 million share offering

ROYAL OAK, Mich. - Agree Realty Corporation (NYSE: ADC), a real estate investment trust with a market capitalization of $8.51 billion, has initiated a public offering of 4.5 million shares of common stock, with a 30-day option for the underwriter to buy up to an additional 675,000 shares. The offering comes as the company’s stock trades near its 52-week high of $79.65. According to InvestingPro analysis, the stock appears to be trading at premium valuations with a P/E ratio of 42.89. The offering is part of a forward sale agreement with Bank of America, N.A.

Under the terms of the forward sale agreement, Bank of America or its affiliates will borrow and sell the shares to BofA Securities, the sole book-running manager for the offering. Agree Realty may later settle the agreement with cash or shares, depending on certain conditions, at a price equal to the public offering price, less underwriting discounts and commissions.

The company will not receive immediate proceeds from the share sale. Future proceeds from the agreement’s settlement are intended for general corporate purposes, such as funding acquisitions, development activities, or repaying debt.

This offering is made under an effective shelf registration statement filed with the Securities and Exchange Commission (SEC). A prospectus supplement related to the offering will be filed with the SEC. The transaction is subject to market and other conditions, and there are no guarantees as to its completion or the use of proceeds as indicated.

Agree Realty specializes in acquiring and developing properties leased to retail tenants. As of March 31, 2025, the company owned 2,422 properties across all 50 states. The company has maintained dividend payments for 32 consecutive years, currently offering a 3.88% yield. InvestingPro data shows the company maintains a "GREAT" overall financial health score, with particularly strong metrics in price momentum and cash flow management. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

This news is based on a press release statement, and forward-looking statements within it are subject to risks and uncertainties that could affect the company’s actual results. These include economic conditions, real estate market trends, credit availability, interest rates, and retail industry changes. Investors are cautioned not to place undue reliance on these forward-looking statements.

In other recent news, Agree Realty Corporation reported its first-quarter results for 2025, showing a mix of earnings performance. The company recorded an earnings per share (EPS) of $0.42, which was slightly below the forecast of $0.43. However, the company exceeded revenue expectations, bringing in $169.16 million compared to the anticipated $164.17 million. Agree Realty also raised its full-year adjusted funds from operations (AFFO) guidance to a range of $4.27 to $4.30 per share, indicating confidence in its future growth prospects.

The company has announced plans to invest between $1.3 billion and $1.5 billion in development and acquisitions, marking a 47% increase year-over-year. This strategic move aligns with the company’s focus on expansion and innovation. During the earnings call, it was noted that Agree Realty has a high occupancy rate of 99.2% across its portfolio, which spans all 50 states. Analysts from various firms discussed the company’s performance, with a focus on its ability to navigate market uncertainties and its strategic acquisitions.

Agree Realty’s core funds from operations (FFO) per share increased by 3.1% year-over-year to $1.04, and its AFFO per share rose by 3% year-over-year to $1.06. The company also declared a monthly dividend of $0.256 per share, reflecting a 2.4% increase year-over-year. Despite the slight miss on EPS, the company’s financial results and strategic guidance suggest a positive outlook for investors.

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