Agree Realty Lifts Low End Of 2026 AFFO Guidance To $4.58–$4.59 As Third-Quarter Net Income Rises 32.3%
The retail landlord trimmed its 2026 investment target to about $1.6 billion and raised its sales guidance, with liquidity of about $2.0 billion.
Agree Realty raised the bottom of its 2026 guidance for adjusted funds from operations (AFFO) per share — a REIT cash-earnings measure — to a range of $4.58 to $4.59, from $4.57 to $4.59, according to an 8-K filed Tuesday. Third-quarter net income to common stockholders rose 32.3% to $66.5 million from $50.3 million a year earlier.
What the third-quarter release says
Net income per share rose 18.5% to $0.53, from $0.45. Core funds from operations per share and AFFO per share each rose 4.9% to $1.15, from $1.09 and $1.10 respectively.
Total AFFO rose 17.2% to $144.2 million from $123.1 million. For the first nine months, AFFO per share was $3.43, up 6.7% from $3.22.
The company invested about $358 million in 94 retail net lease properties in the quarter, across 30 states. It also started six development or developer-funding projects with total committed capital of about $57 million.
The portfolio held 2,888 properties at quarter end and was 99.8% leased.
Guidance changes
Investment volume guidance for 2026 is now about $1.6 billion, against a prior range of $1.6 billion to $1.8 billion. Disposition (property sales) guidance rose to $100 million to $150 million, from $50 million to $100 million.
The company cut its estimate of dilution from outstanding forward equity to $0.01 to $0.02 per share, from $0.02 to $0.04. General and administrative expense guidance held at 5.3% to 5.6% of adjusted revenue.
CEO Joey Agree said the company will "remain disciplined capital allocators, focusing on value over volume and preserving our liquidity."
What the $2.0 billion of liquidity is made of
The company reported about $2.0 billion of liquidity, but only $91.5 million of it is cash. The rest is $1.25 billion of availability on its revolving credit facility and $657.1 million of forward equity still to be settled.
In September it sold $400 million of 5.65% senior notes due 2036, an all-in rate of 5.36% after hedging gains. It also settled 5.7 million forward shares for net proceeds of about $426 million.
Net debt to recurring EBITDA was 4.8 times, or 3.9 times if the forward equity proceeds are deducted.
Dividend and what to watch
The company declared an October monthly dividend of $0.271 per share, up 3.4% from a year earlier, payable November 13.
Management hosts its investor call Wednesday at 9:00 a.m. ET.
The stock closed Tuesday at $67.08, up 1.91% for the session, according to market data.
Sources
- 8-K Filing — AGREE REALTY CORP (ADC) — SEC EDGAR
- Exhibit adc20260930-ex991.htm — AGREE REALTY CORP 8-K exhibit — SEC EDGAR
- Exhibit adc20260930-ex992.htm — AGREE REALTY CORP 8-K exhibit — SEC EDGAR
- Exhibit adc20260930-ex993.htm — AGREE REALTY CORP 8-K exhibit — SEC EDGAR
