Agree Realty (ADC) AI Stock Analysis

• Market Cap: $8.03B
• Dividend Yield: 4.23%
• Average Volume (3M): 1.12M
• Price to Earnings (P/E): 43.3
• Beta (1Y): 0.14
• Revenue Growth: 13.27%
• EPS Growth: -5.92%
• Country: US
• Employees: 75
• Sector: Real Estate
• Sector Strength: 50
• Industry: REIT - Retail
• EPS (TTM): 0.43
• Shares Outstanding: 110,666,080
• 10 Day Avg. Volume: 968,598
• 30 Day Avg. Volume: 1,121,637
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.44
• Enterprise Value/Revenue: 17.47
• Enterprise Value/Gross Profit: 21.86
• Enterprise Value/Ebitda: 20.63
• 1Y Price Target: $81.89
• Price Target Upside: 11.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 73 Outperform
• Price Target: $81.00 ▲(10.23% Upside)

Agree Realty's strong financial performance and strategic investments are key strengths, supporting a solid overall score. However, high valuation metrics and potential tenant credit issues present risks. The company's robust balance sheet and liquidity position provide a buffer against macroeconomic challenges.

Positive Factors

Financial Performance

The FY25 AFFOps guidance was raised above consensus, implying a material acceleration and growth compared to peers.

Investment Strategy

The increased $200 million acquisition guidance at current spreads sets up ADC for success and for forward estimates to increase.

Tenant Diversification

Top 10 tenant exposure decreased, suggesting a more diversified and potentially less risky tenant base.

Negative Factors

Investment Returns

The cost of capital increased, which could affect the company's financial flexibility and investment returns.

Occupancy Decline

Leased occupancy fell -40 basis points quarter over quarter to 99.2%, largely related to Big Lots.

Profitability Concerns

Acquisition cap rates decreased, which may impact the profitability of new investments.

Agree Realty Business Overview & Revenue Model

Company Description

Agree Realty Corporation (ADC) is a real estate investment trust (REIT) that focuses on the acquisition, development, and management of retail properties, primarily single-tenant net lease assets. The company operates within the retail sector and invests in properties that are leased to well-known national and regional retailers, ensuring a diversified portfolio across various industries. With a commitment to delivering long-term value, Agree Realty emphasizes strategic growth through selective acquisitions and development projects that align with evolving consumer trends.

How the Company Makes Money

Agree Realty generates revenue primarily through rental income from its portfolio of retail properties leased to tenants under long-term net lease agreements. These agreements typically require tenants to cover property expenses such as taxes, insurance, and maintenance, resulting in a relatively stable cash flow for the company. In addition to rental income, Agree Realty may also benefit from property appreciation and potential lease escalations over time, enhancing its overall revenue. The company strategically focuses on high-quality tenants with strong credit ratings, which minimizes default risk and supports reliable income streams. Furthermore, Agree Realty's growth is bolstered by its active acquisition strategy, allowing it to expand its portfolio and increase rental revenues, while partnerships with reputable retailers further solidify its position in the market.

Agree Realty Financial Statement Overview

Summary

Agree Realty showcases a robust financial profile with consistent revenue and cash flow growth, strong profit margins, and a stable balance sheet. The company maintains a solid financial position with manageable leverage and effective cost management, though slight declines in net profit margins and ROE warrant monitoring.

Income Statement

Agree Realty has demonstrated strong revenue growth over the past years, with a notable increase from $248.6M in 2020 to $659.8M in TTM (Trailing-Twelve-Months) 2025. Gross profit margins are robust, consistently above 80%, indicating effective cost management. However, the net profit margin has slightly decreased from 2024 to TTM 2025, reflecting increased expenses or operational costs.

Balance Sheet

The company's balance sheet shows a solid financial position with a high equity ratio of 62.2% in TTM 2025, indicating financial stability and a lower risk of financial distress. The debt-to-equity ratio remains moderate at 0.51, suggesting manageable leverage levels. Return on equity has slightly decreased, which could indicate potential challenges in generating profits from equity.

Cash Flow

Agree Realty's cash flow statements reveal a healthy operating cash flow, growing consistently over the years. The free cash flow has also shown significant growth, indicating strong cash-generating capabilities. The operating cash flow to net income ratio suggests effective cash conversion from net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	659.75M	617.10M	537.50M	463.15M	363.61M	248.57M
Gross Profit	527.33M	542.25M	470.78M	377.53M	298.26M	216.82M
EBITDA	558.83M	543.26M	463.95M	432.07M	295.67M	192.16M
Net Income	182.09M	189.20M	169.96M	152.44M	122.27M	91.38M
Balance Sheet
Total Assets	9.08B	8.49B	7.77B	6.71B	5.23B	3.89B
Cash, Cash Equivalents and Short-Term Investments	8.91M	6.40M	10.91M	27.76M	43.25M	6.14M
Total Debt	3.30B	2.83B	2.41B	1.94B	1.69B	1.22B
Total Liabilities	3.43B	2.98B	2.57B	2.08B	1.81B	1.36B
Stockholders Equity	5.65B	5.51B	5.20B	4.63B	3.42B	2.52B
Cash Flow
Free Cash Flow	478.15M	431.97M	391.60M	362.12M	246.31M	142.96M
Operating Cash Flow	478.15M	431.97M	391.60M	362.12M	246.31M	142.96M
Investing Cash Flow	-1.32B	-885.41M	-1.27B	-1.62B	-1.39B	-1.30B
Financing Cash Flow	827.48M	445.31M	869.01M	1.24B	1.18B	1.12B

Agree Realty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 73.48
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 73.48 is above the 20-day moving average (MA) of 73.12, above the 50-day MA of 72.87, and above the 200-day MA of 72.80, indicating a bullish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 53.51 is Neutral, neither overbought nor oversold. The STOCH value of 28.59 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	75 Outperform	$7.68B	19.34	9.18%	5.62%	4.82%	-5.18%
BRX	75 Outperform	$8.10B	24.22	11.52%	4.30%	5.98%	12.11%
FRT	74 Outperform	$8.14B	23.77	11.04%	4.55%	6.00%	15.77%
ADC	73 Outperform	$8.03B	43.28	3.44%	4.23%	13.27%	-5.92%
KRG	73 Outperform	$4.71B	27.29	5.53%	4.83%	4.03%	―
PECO	66 Neutral	$4.68B	64.15	3.01%	3.64%	10.31%	14.39%
Sector *	63 Neutral	$6.81B	13.13	-1.00%	7.18%	3.62%	-22.63%

Agree Realty Corporate Events

Agree Realty Announces Impact of Forward Equity Offerings

On July 2, 2025, Agree Realty Corporation announced its weighted-average number of common shares outstanding for the three and six months ended June 30, 2025. The announcement detailed the impact of forward equity offerings on the company’s earnings per share calculations, indicating a dilution effect due to these offerings.

The most recent analyst rating on (ADC) stock is a Buy with a $71.50 price target. To see the full list of analyst forecasts on Agree Realty stock, see the ADC Stock Forecast page.

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.