Agree Realty (ADC) AI Stock Analysis

• Market Cap: $8.26B
• Dividend Yield: 4.02%
• Average Volume (3M): 1.36M
• Price to Earnings (P/E): 42.3
• Beta (1Y): 0.20
• Revenue Growth: 13.75%
• EPS Growth: 5.67%
• Country: US
• Employees: 75
• Sector: Real Estate
• Sector Strength: 69
• Industry: REIT - Retail
• EPS (TTM): 0.42
• Shares Outstanding: 110,018,550
• 10 Day Avg. Volume: 1,219,517
• 30 Day Avg. Volume: 1,356,480
• PEG Ratio: -75.59
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.94
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 4.55
• Enterprise Value/Gross Profit: 24.20
• Enterprise Value/Ebitda: 5.45
• 1Y Price Target: $80.96
• Price Target Upside: 6.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 69 Neutral
• Price Target: $82.00 ▲(8.25%Upside)

Agree Realty's overall stock score reflects strong financial performance and strategic resilience, despite valuation concerns and neutral technical indicators. The company's increased investment guidance and robust balance sheet are significant positives, balancing risks such as temporary occupancy dips and market volatility.

Positive Factors

Acquisitions

Deal flow remains strong as ADC closed more than $350M of acquisitions, one of the best results since 2023.

Financial Performance

ADC reported Core FFO/sh of $1.04, which beat both the estimate as well as consensus ($1.03).

Liquidity

ADC has a formidable liquidity profile, which would allow the company to fund more than one year of acquisitions without additional equity.

Negative Factors

AFFO Expectation

Despite a strong quarter and raised investment guidance, there was no materially better AFFO expectation for the year.

Tariffs

Tariffs might impact some of ADC's largest tenant categories, including home improvement and auto parts, due to higher steel and aluminum costs.

Tenant Risk

Rite Aid is preparing its second bankruptcy, potentially winding down a portion of its locations. ADC has exposure to 1 Rite Aid.

Agree Realty Business Overview & Revenue Model

Company Description

Agree Realty Corporation (ADC) is a real estate investment trust (REIT) primarily engaged in the acquisition and development of properties net leased to industry-leading retail tenants. The company focuses on investing in retail properties that are leased to tenants under long-term net lease agreements, which typically require the tenant to cover maintenance, insurance, and tax expenses. Agree Realty's portfolio includes a diverse range of retail properties across the United States, serving various sectors such as grocery, convenience stores, and home improvement, anchored by high-quality tenants.

How the Company Makes Money

Agree Realty makes money by acquiring, developing, and managing retail properties that are leased to tenants through long-term net lease agreements. The company primarily generates revenue from rental income, as tenants pay rent for occupying the space in their properties. The net lease structure, where tenants are responsible for most property-related expenses, ensures a stable and predictable income stream for Agree Realty. Additionally, the company's strategic partnerships with top-tier retail tenants and its focus on high-traffic, well-located properties contribute to its revenue stability and growth. Agree Realty also benefits from property appreciation and reinvests capital to expand its portfolio, further enhancing its revenue potential.

Agree Realty Financial Statement Overview

Summary

Agree Realty is in a strong financial position, characterized by consistent revenue growth, robust profitability margins, and solid cash flow generation. The company maintains a conservative leverage posture and a healthy equity ratio, providing financial stability. While there are minor pressures on net profit margins and increasing liabilities, the overall financial health remains strong, ensuring the company is well-positioned to capitalize on future opportunities.

Income Statement

Agree Realty has demonstrated strong revenue growth, with a notable increase of 18% from 2023 to 2024, and further growth into 2025. The gross profit margin remains healthy at approximately 73% TTM, indicating efficient cost management. However, there is a slight decline in net profit margin to 29.46% TTM compared to the previous year, suggesting some pressure on net income growth relative to revenue. EBIT and EBITDA margins are robust, reflecting strong operational performance.

Balance Sheet

The company's debt-to-equity ratio is 0.40, indicating a conservative leverage position relative to its equity base. Stockholders' equity has shown a consistent upward trend, contributing to a stable financial foundation. The equity ratio stands at 64.13% TTM, which is strong and suggests a solid asset base funded by equity. However, the overall increase in total liabilities could pose future risks if not managed prudently.

Cash Flow

Agree Realty's cash flow from operations is robust, with a healthy free cash flow of $451 million TTM. The operating cash flow to net income ratio is approximately 2.41, which indicates strong cash generation relative to net income. Additionally, the consistent growth in free cash flow, maintaining positive momentum over the recent periods, underscores effective cash management strategies.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
636.80M	617.10M	537.50M	463.15M	363.61M	248.57M
	Gross Profit
458.10M	542.25M	470.78M	377.53M	298.26M	216.82M
	EBIT
303.26M	302.24M	254.39M	218.09M	190.27M	125.13M
	EBITDA
534.96M	543.26M	463.95M	386.24M	295.67M	192.16M
	Net Income Common Stockholders
187.62M	189.20M	169.96M	152.44M	122.27M	91.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.40M	6.40M	10.91M	27.76M	43.25M	6.14M
	Total Assets
8.49B	8.49B	7.77B	6.71B	5.23B	3.89B
	Total Debt
2.83B	2.83B	2.41B	1.94B	1.69B	1.22B
	Net Debt
2.83B	2.83B	2.40B	1.91B	1.64B	1.21B
	Total Liabilities
2.98B	2.98B	2.57B	2.08B	1.81B	1.36B
	Stockholders Equity
5.51B	5.51B	5.20B	4.63B	3.42B	2.52B
Cash Flow		Free Cash Flow
451.42M	431.97M	391.60M	362.12M	246.31M	142.96M
	Operating Cash Flow
451.42M	431.97M	391.60M	362.12M	246.31M	142.96M
	Investing Cash Flow
-1.14B	-885.41M	-1.27B	-1.62B	-1.39B	-1.30B
	Financing Cash Flow
684.62M	445.31M	869.01M	1.24B	1.18B	1.12B

Agree Realty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 75.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADC, the sentiment is Positive. The current price of 75.75 is above the 20-day moving average (MA) of 75.35, above the 50-day MA of 75.54, and above the 200-day MA of 73.12, indicating a bullish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 52.58 is Neutral, neither overbought nor oversold. The STOCH value of 79.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ADC.

Agree Realty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NNN	77 Outperform	$7.73B	19.13	9.35%	5.64%	5.40%	-1.33%
FRT	73 Outperform	$8.26B	27.31	9.85%	4.74%	6.07%	24.23%
BRX	71 Outperform	$7.54B	23.52	10.99%	4.54%	4.58%	12.65%
ADC	69 Neutral	$8.26B	42.31	3.54%	4.02%	13.75%	5.67%
KRG	66 Neutral	$4.70B	347.24	0.81%	4.91%	4.37%	-75.82%
PECO	63 Neutral	$4.83B	62.39	3.09%	3.55%	9.27%	19.51%
Sector *	60 Neutral	$2.76B	10.59	0.51%	8507.90%	5.51%	-19.44%

Agree Realty Corporate Events

Agree Realty Completes $400M Public Offering

On May 23, 2025, Agree Limited Partnership, a subsidiary of Agree Realty Corporation, completed a public offering of $400 million in 5.600% Notes due 2035. These Notes, guaranteed by the Parent Guarantor and certain subsidiaries, are senior unsecured obligations and are subject to various restrictive covenants. The offering resulted in net proceeds of approximately $393.6 million to the Parent Guarantor, enhancing its financial position and potentially impacting its market strategy.

The most recent analyst rating on (ADC) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on Agree Realty stock, see the ADC Stock Forecast page.

Agree Realty Announces $400M Public Offering

On May 14, 2025, Agree Limited Partnership, a subsidiary of Agree Realty Corporation, entered into an underwriting agreement for a $400 million public offering of 5.600% Notes due 2035. This move signifies a strategic financial decision aimed at strengthening the company’s capital structure, potentially impacting its market positioning and offering opportunities for stakeholders.

The most recent analyst rating on (ADC) stock is a Buy with a $67.50 price target. To see the full list of analyst forecasts on Agree Realty stock, see the ADC Stock Forecast page.

Agree Realty Stockholders Approve Key Governance Changes

On May 15, 2025, Agree Realty held its annual meeting of stockholders where key decisions were made regarding the company’s governance and financial structure. Stockholders elected three directors to serve until 2028, ratified the appointment of Grant Thornton LLP as the independent registered public accounting firm for 2025, approved executive compensation, and agreed to amend the Charter to increase the number of authorized common stock shares from 180 million to 360 million.

The most recent analyst rating on (ADC) stock is a Buy with a $67.50 price target. To see the full list of analyst forecasts on Agree Realty stock, see the ADC Stock Forecast page.