Agree Realty Ends Quarter With Zero Commercial Paper After $400 Million Ten-Year Bond Sale
The retail REIT's 10-Q shows no revolver or commercial paper balance at September 30, after a bond sale and a $19.4 million swap payout.
Agree Realty ended the third quarter with nothing outstanding on its revolving credit facility or commercial paper program, its 10-Q shows, after selling $400.0 million of 5.65% notes due 2036 in September. The commercial paper balance stood at $320.5 million at December 31, 2025.
What the 10-Q says about the bond deal
The notes were priced at 98.497% of principal, for proceeds of $394.0 million before debt issuance costs. The company also terminated $300.0 million of forward-starting interest rate swaps that hedged the notes and received $19.4 million, which the filing says will be recognized as an adjustment to income over the term of the debt.
Total principal debt was $3,752,250 thousand at September 30, down from $3,849,341 thousand at June 30, per the prior quarter's filing. The filing lists the 2036 notes at an all-in rate of 5.36%. The company's earnings release puts liquidity at about $2.0 billion, including $1.25 billion of revolver availability.
Earnings and interest costs
Quarterly net income climbed 31% to $68.5 million, up $16.2 million from $52.3 million in the prior-year period. A tornado-damaged property produced a $0.9 million gain, largely from insurance proceeds exceeding its carrying value.
Interest expense, net rose 16% to $41.0 million for the quarter, and 19% to $117.2 million for the nine months, from $98.3 million. The filing ties about $0.5 million of the quarter's increase to the 2036 notes. It also says the company expects to reclassify $13.2 million of swap gains as a reduction to interest expense over the next twelve months.
What to watch
The company must settle its remaining 8,762,726 forward-sale shares by dates between September 2027 and April 2028, the filing says. The 10-Q records the share price at $66.81 on September 30, against $75.74 at June 30 per the earlier filing.
Agree is due to hold its earnings call on Wednesday at 9:00 AM ET, according to its release.
Sources
- 10-Q Filing — Agree Realty (ADC) — SEC EDGAR
- 10-Q Filing — Agree Realty (ADC), Q2 FY2026 filed 2026-07-30 (comparison basis) — SEC EDGAR
- Earnings release (8-K Item 2.02, adc20260930-ex991.htm) — Agree Realty, filed 2026-10-20 — SEC EDGAR
- Agree Realty: Q3 Earnings Snapshot – WTOP News — wtop.com
- Agree Realty FFO of $1.15 beats by $0.02, revenue of $213.88M beats by $0.95M (ADC:NYSE) | Seeking Alpha — seekingalpha.com
- Barclays Maintains Equal-Weight on Agree Real... — benzinga.com
- Agree Realty Q3 earnings beat, revenue misses as leasing activity increases (ADC:NYSE) | Seeking Alpha — seekingalpha.com
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