A Deep Dive Into: $ADC Agree Realty Corporation

Who are they and what do they do?

Agree Realty Corporation is a publicly traded real estate investment trust that engages in the acquisition and development of properties net-leased to industry leading retail tenants.

So, you may be asking what is a net lease and who are these industry leading retail tenants? Let’s cover the first portion of the question. A commercial net lease is where the tenant pays for their rental space plus one or more additional expenses.

The Portfolio

Agree Realty owns 1,839 retail properties totaling 39 million sqft in all 48 continental US states. Agree’s tenants are well diversified across a wide range of sectors including grocery stores, home improvement, tire & auto serivces, convivence stores, dollar stores, general merchidise, auto parts, farm and rural supply, consumer electronics, and more!

Agree’s tenants are also financially stable with 68% being investment grade companies.

Agree continues to add to it’s portfolio by increasing its investments. They have invested over 7 billion dollars since 2010!

Show Me The Money

Agree Realty has proven it can increase revenues year over year with $187M in 2019, $248M in 2020, and $339M in 2021. That’s an average growth rate of 34.6% on the top line revenue during that time period.

However, earnings are also increasing going from $80M in 2019 to over $122M in 2021.

The Dividend

Agree Realty currently pays a dividend of $0.24 per share, distributed monthly or $2.88 annually. This represents a yield of 3.88% based on current market valuations of $74.66 a share. ADC’s payout ratio is 72.31%

Agree Realty has paid over 131 consecutive common dividends with a 6+% 10-year CAGR growth Rate!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: