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Agree Realty Corporation Reports Third Quarter 2026 Results

By Business Wire | October 20, 2026, 4:05 PM

Increases 2026 AFFO Per Share Guidance to $4.58 to $4.59

Balance Sheet Fortified with Approximately $2.0 Billion of Liquidity

ROYAL OAK, Mich.--(BUSINESS WIRE)--Agree Realty Corporation (NYSE: ADC) (the “Company”) today announced results for the quarter ended September 30, 2026. All per share amounts included herein are on a diluted per common share basis unless otherwise stated.



Third Quarter 2026 Financial and Operating Highlights:

  • Invested approximately $358 million in 94 retail net lease properties
  • Commenced six development or Developer Funding Platform (“DFP”) projects for total committed capital of approximately $57 million
  • Net Income per share attributable to common stockholders increased 18.5% to $0.53
  • Core Funds from Operations (“Core FFO”) per share increased 4.9% to $1.15
  • Adjusted Funds from Operations (“AFFO”) per share increased 4.9% to $1.15
  • Declared a monthly dividend of $0.267 per common share for September, a 4.3% year-over-year increase
  • Completed a public bond offering of $400 million of 5.65% senior unsecured notes due 2036 with an all-in rate of 5.36% inclusive of prior hedging activity
  • Settled 5.7 million shares of outstanding forward equity for net proceeds of approximately $426 million
  • Balance sheet well positioned at 3.9 times proforma net debt to recurring EBITDA; 4.8 times excluding unsettled forward equity
  • Ended the quarter with approximately $2.0 billion of liquidity including availability on the revolving credit facility, outstanding forward equity, and cash on hand

Financial Results

Net Income Attributable to Common Stockholders

Net Income for the three months ended September 30, 2026 increased 32.3% to $66.5 million, compared to $50.3 million for the comparable period in 2025. Net Income per share for the three months ended September 30th increased 18.5% to $0.53, compared to $0.45 for the comparable period in 2025.

Net Income for the nine months ended September 30, 2026 increased 25.7% to $179.5 million, compared to $142.7 million for the comparable period in 2025. Net Income per share for the nine months ended September 30th increased 13.4% to $1.47, compared to $1.30 for the comparable period in 2025.

Core FFO

Core FFO for the three months ended September 30, 2026 increased 17.2% to $143.4 million, compared to $122.4 million for the comparable period in 2025. Core FFO per share for the three months ended September 30th increased 4.9% to $1.15, compared to $1.09 for the comparable period in 2025.

Core FFO for the nine months ended September 30, 2026 increased 18.5% to $415.8 million, compared to $351.0 million for the comparable period in 2025. Core FFO per share for the nine months ended September 30th increased 6.8% to $3.40, compared to $3.18 for the comparable period in 2025.

AFFO

AFFO for the three months ended September 30, 2026 increased 17.2% to $144.2 million, compared to $123.1 million for the comparable period in 2025. AFFO per share for the three months ended September 30th increased 4.9% to $1.15, compared to $1.10 for the comparable period in 2025.

AFFO for the nine months ended September 30, 2026 increased 18.3% to $419.8 million, compared to $354.8 million for the comparable period in 2025. AFFO per share for the nine months ended September 30th increased 6.7% to $3.43, compared to $3.22 for the comparable period in 2025.

Dividend

In the third quarter, the Company declared monthly cash dividends of $0.267 per common share for each of July, August and September 2026. The monthly dividends declared during the third quarter reflect an annualized dividend amount of $3.204 per common share, representing a 4.3% year-over-year increase. The dividends represent payout ratios of approximately 70% of Core FFO per share and 69% of AFFO per share, respectively.

For the nine months ended September 30, 2026, the Company declared monthly cash dividends totaling $2.388 per common share, a 4.1% increase over the dividends of $2.295 per common share declared for the comparable period in 2025. The dividends represent payout ratios of approximately 70% of Core FFO per share and 70% of AFFO per share, respectively.

Subsequent to quarter end, the Company declared an increased monthly cash dividend of $0.271 per common share for October 2026. The October monthly dividend reflects an annualized dividend amount of $3.252 per common share, representing a 3.4% increase over the annualized dividend amount of $3.144 per common share from October 2025. The October dividend is payable on November 13, 2026 to stockholders of record at the close of business on October 30, 2026.

Additionally, subsequent to quarter end, the Company declared a monthly cash dividend on its 4.25% Series A Cumulative Redeemable Preferred Stock of $0.08854 per depositary share, which is equivalent to $1.0625 per annum. The dividend is payable on November 2, 2026 to stockholders of record at the close of business on October 23, 2026.

Earnings Guidance

The table below provides estimates for significant components of our 2026 earnings guidance.

 

 

Prior 2026

 

Revised 2026

 

 

Guidance

 

Guidance

AFFO per share(1)(2)

 

$4.57 to $4.59

 

$4.58 to $4.59

Investment volume

 

$1.6 to $1.8 billion

 

Approximately $1.6 billion

Disposition volume

 

$50 to $100 million

 

$100 to $150 million

General and administrative expenses (% of adjusted revenue)(3)(4)

 

5.3% to 5.6%

 

5.3% to 5.6%

Non-reimbursable real estate expenses (% of adjusted revenue)(3)

 

1.0% to 1.5%

 

1.0% to 1.5%

Income and other tax expense

 

Approximately $2 million

 

Approximately $2 million

Treasury stock method dilution(5)

 

$0.02 to $0.04

 

$0.01 to $0.02

The Company’s 2026 guidance is subject to risks and uncertainties more fully described in this press release and in the Company’s filings with the Securities and Exchange Commission (the “SEC”).

(1)

The Company does not provide guidance with respect to the most directly comparable GAAP financial measure or provide reconciliations to GAAP from its forward-looking non-GAAP financial measure of AFFO per share guidance due to the inherent difficulty of forecasting the effect, timing and significance of certain amounts in the reconciliation that would be required by Item 10(e)(1)(i)(B) of Regulation S-K. Examples of these amounts include impairments of assets, gains and losses from sales of assets, and depreciation and amortization from new acquisitions or developments. In addition, certain non-recurring items may also significantly affect net income but are generally adjusted for in AFFO. Based on our historical experience, the dollar amounts of these items could be significant and could have a material impact on the Company’s GAAP results for the guidance period.

(2)

The Company's AFFO per share guidance utilizes the current forward SOFR curve to forecast interest expense related to any outstanding commercial paper notes and revolver borrowings during the year.

(3)

Adjusted revenue equates to “Total Revenues” as presented in our consolidated statements of operations and comprehensive income, excluding the amortization of above and below market lease intangibles.

(4)

Cash G&A expense is expected to be in a range of 3.7% to 4.0% of adjusted revenue. Cash G&A is defined as “General and administrative” expenses as presented in our consolidated statements of operations and comprehensive income, less stock-based compensation expense.

(5)

Represents the estimated dilutive impact of the Company’s outstanding forward equity calculated in accordance with the treasury stock method, which is included in the AFFO per share guidance range.

CEO Comments

“We are very pleased with our performance through the first nine months of the year, as we invested approximately $1.3 billion across all three of our external growth platforms and are raising our 2026 AFFO per share guidance to a range of $4.58 to $4.59,” said Joey Agree, President and Chief Executive Officer. “During the quarter, we completed a $400 million public bond offering at an all-in rate of 5.36%, further strengthening our fortress balance sheet. With approximately $2.0 billion of liquidity, proforma net debt to recurring EBITDA of 3.9 times and a portfolio that is 99.8% leased, we are exceptionally well positioned heading into 2027. We will remain disciplined capital allocators, focusing on value over volume and preserving our liquidity to capitalize on shifts in the transaction market, as we have throughout our history.”

Investment and Disposition Activity

Total investment volume for the third quarter was approximately $357.7 million across 94 retail net lease properties, representing capital deployed across all three of the Company's external growth platforms. The properties are located in 30 states and leased to tenants operating in 22 retail sectors. For the nine months ended September 30, 2026, total investment volume was approximately $1.3 billion across 261 properties.

Acquisitions

Total acquisition volume for the third quarter was approximately $308.6 million and included 68 properties net leased to leading retailers operating in sectors including auto parts, tire & auto service, home improvement, grocery stores, and warehouse clubs. The properties are located in 27 states and leased to tenants operating in 17 retail sectors. Third quarter activity included the acquisition of two ground leases for an aggregate purchase price of approximately $19.5 million, representing 5.5% of annualized base rents acquired.

The properties were acquired at a weighted-average capitalization rate of 7.3% and had a weighted-average lease term of approximately 14.5 years. Approximately 52.1% of annualized base rents acquired were generated from investment grade retail tenants.

For the nine months ended September 30, 2026, total acquisition volume was approximately $1.2 billion. The 235 acquired properties are located in 41 states and the District of Columbia and leased to tenants who operate in 27 retail sectors. The properties were acquired at a weighted-average capitalization rate of 7.1% and had a weighted-average lease term of approximately 12.1 years. Approximately 62.6% of annualized base rents acquired were generated from investment grade retail tenants.

Development and Developer Funding Platform

During the third quarter, the Company commenced six development or DFP projects, with total anticipated costs of approximately $57.4 million. Construction continued during the quarter on eight projects with anticipated costs totaling approximately $87.9 million. The Company completed seven projects during the quarter with total costs of approximately $82.4 million.

For the nine months ended September 30, 2026, the Company had 26 development or DFP projects completed or under construction with anticipated total costs of approximately $256.7 million. The projects are leased to leading retailers including 7-Eleven, TJX Companies, Ross Dress for Less, Burlington, Boot Barn, Gerber Collision, Starbucks, and Sunbelt Rentals.

The following table presents estimated costs for the Company's active or completed development and DFP projects for the nine months ended September 30, 2026:

 

 

 

 

 

 

 

 

Anticipated

Anticipated

 

Number of

 

Costs Funded

 

Remaining

 

Total Project

Quarter of Delivery

 

Projects

 

to Date

 

Funding Costs

 

Costs

Q1 2026

 

4

 

$

22,534

 

$

—

 

$

22,534

Q2 2026

 

1

 

 

6,478

 

 

—

 

 

6,478

Q3 2026

 

7

 

 

82,394

 

 

—

 

 

82,394

Q4 2026

 

1

 

 

4,427

 

 

782

 

 

5,209

Q1 2027

 

4

 

 

23,692

 

 

8,170

 

 

31,862

Q2 2027

 

4

 

 

16,257

 

 

32,770

 

 

49,027

Q3 2027

 

5

 

 

18,714

 

 

40,486

 

 

59,200

Total

 

26

 

 

174,496

 

 

82,208

 

 

256,704

Development and DFP project costs are in thousands; any differences are the result of rounding. Costs Funded to Date may include adjustments related to completed projects to arrive at the correct Anticipated Total Project Costs.

Dispositions

During the third quarter, the Company sold 11 properties for gross proceeds of approximately $26.9 million. The dispositions were completed at a weighted-average capitalization rate of 6.5%.

During the nine months ended September 30, 2026, the Company sold 32 properties for gross proceeds of approximately $67.9 million. The dispositions were completed at a weighted-average capitalization rate of 6.8%.

Portfolio Update

As of September 30, 2026, the Company’s portfolio consisted of 2,888 properties located in all 50 states and the District of Columbia, comprised of approximately 61.1 million square feet of gross leasable area. At quarter end, the portfolio was approximately 99.8% leased, had a weighted-average lease term of approximately 7.8 years, and generated approximately 65.1% of annualized base rents from investment grade retail tenants.

Ground Lease Portfolio

As of September 30, 2026, the Company’s ground lease portfolio consisted of 270 leases located in 39 states and the District of Columbia and totaled approximately 8.0 million square feet of gross leasable area. Properties ground leased to tenants represented 10.0% of annualized base rents. At quarter end, the ground lease portfolio was fully occupied, had a weighted-average lease term of approximately 8.6 years, and generated 85.2% of annualized base rents from investment grade retail tenants.

Leasing Activity and Expirations

During the third quarter, the Company executed new leases, extensions or options on approximately 862,000 square feet of gross leasable area throughout the existing portfolio. Notable new leases, extensions or options included a 28,000-square-foot T.J. Maxx in Turlock, California and a 25,000-square-foot Ross Dress for Less in Springfield, Missouri.

For the nine months ended September 30, 2026, the Company executed new leases, extensions or options on approximately 2.5 million square feet of gross leasable area throughout the existing portfolio.

As of September 30, 2026, the Company’s 2026 lease maturities represented 0.2% of annualized base rents. The following table presents contractual lease expirations within the Company’s portfolio as of September 30, 2026, assuming no tenants exercise renewal options:

 

 

 

 

Annualized Base Rent(1)

 

Gross Leasable Area

Year

 

Number of

Leases

 

Dollars

 

% of

Total

 

Square Feet

 

% of

Total

2026

 

11

 

$

1,762

 

0.2

%

 

151

 

0.2

%

2027

 

111

 

 

24,693

 

3.0

%

 

2,529

 

4.2

%

2028

 

174

 

 

47,404

 

5.8

%

 

4,426

 

7.3

%

2029

 

227

 

 

70,071

 

8.5

%

 

6,540

 

10.7

%

2030

 

343

 

 

75,510

 

9.2

%

 

6,297

 

10.3

%

2031

 

284

 

 

73,578

 

8.9

%

 

5,826

 

9.6

%

2032

 

292

 

 

66,286

 

8.1

%

 

4,590

 

7.5

%

2033

 

241

 

 

55,675

 

6.8

%

 

4,193

 

6.9

%

2034

 

247

 

 

56,972

 

6.9

%

 

3,951

 

6.5

%

2035

 

240

 

 

65,068

 

7.9

%

 

4,518

 

7.4

%

Thereafter

 

974

 

 

286,362

 

34.7

%

 

17,916

 

29.4

%

Total Portfolio

 

3,144

 

$

823,381

 

100.0

%

 

60,937

 

100.0

%

The contractual lease expirations presented above exclude the effect of replacement tenant leases that had been executed as of September 30, 2026, but that had not yet commenced. Annualized Base Rent and Gross Leasable Area (square feet) are in thousands; any differences are the result of rounding.

(1)

Refer to the Glossary for the Company's definition of Annualized Base Rent ("ABR").

Top Tenants

The following table presents annualized base rents for all tenants that represent 1.5% or greater of the Company’s total annualized base rent as of September 30, 2026:

Tenant

 

ABR(1)

 

% of Total ABR

Walmart

 

$

46,515

 

5.6

%

Tractor Supply

 

 

37,739

 

4.6

%

Dollar General

 

 

30,614

 

3.7

%

Hobby Lobby

 

 

28,387

 

3.4

%

O'Reilly Auto Parts

 

 

24,724

 

3.0

%

TJX Companies

 

 

24,444

 

3.0

%

CVS

 

 

24,104

 

2.9

%

Gerber Collision

 

 

22,269

 

2.7

%

Best Buy

 

 

22,133

 

2.7

%

Kroger

 

 

21,645

 

2.6

%

7-Eleven

 

 

21,636

 

2.6

%

Lowe's

 

 

21,320

 

2.6

%

Sunbelt Rentals

 

 

19,789

 

2.4

%

Sherwin-Williams

 

 

17,814

 

2.2

%

Burlington

 

 

16,929

 

2.1

%

Home Depot

 

 

16,433

 

2.0

%

BP

 

 

13,527

 

1.6

%

Wawa

 

 

13,252

 

1.6

%

Dollar Tree

 

 

13,019

 

1.6

%

Other(2)

 

 

387,088

 

47.1

%

Total Portfolio

 

$

823,381

 

100.0

%

ABR is in thousands; any differences are the result of rounding.

(1)

Refer to the Glossary for the Company's definition of ABR.

(2)

Includes tenants generating less than 1.5% of ABR.

Retail Sectors

The following table presents annualized base rents for all the Company’s retail sectors as of September 30, 2026:

Sector

 

ABR(1)

 

% of Total ABR

Grocery Stores

 

$

80,880

 

9.8

%

Home Improvement

 

 

73,274

 

8.9

%

Convenience Stores

 

 

68,166

 

8.3

%

Tire & Auto Service

 

 

61,403

 

7.5

%

Auto Parts

 

 

52,196

 

6.3

%

Dollar Stores

 

 

51,613

 

6.3

%

Off-Price Retail

 

 

49,151

 

6.0

%

Farm & Rural Supply

 

 

39,549

 

4.8

%

General Merchandise

 

 

39,050

 

4.7

%

Crafts & Novelties

 

 

30,951

 

3.8

%

Pharmacy

 

 

28,644

 

3.5

%

Consumer Electronics

 

 

26,628

 

3.2

%

Discount Stores

 

 

25,025

 

3.0

%

Health & Fitness

 

 

24,430

 

3.0

%

Equipment Rental

 

 

20,845

 

2.5

%

Health Services

 

 

20,201

 

2.5

%

Warehouse Clubs

 

 

20,082

 

2.4

%

Restaurants - Quick Service

 

 

16,609

 

2.0

%

Dealerships

 

 

16,470

 

2.0

%

Sporting Goods

 

 

15,848

 

1.9

%

Financial Services

 

 

13,021

 

1.6

%

Specialty Retail

 

 

9,721

 

1.2

%

Restaurants - Casual Dining

 

 

7,386

 

0.9

%

Shoes

 

 

6,899

 

0.8

%

Home Furnishings

 

 

5,212

 

0.6

%

Pet Supplies

 

 

4,836

 

0.6

%

Beauty & Cosmetics

 

 

4,265

 

0.5

%

Theaters

 

 

3,976

 

0.5

%

Entertainment Retail

 

 

2,729

 

0.3

%

Apparel

 

 

2,392

 

0.3

%

Miscellaneous

 

 

1,301

 

0.2

%

Office Supplies

 

 

628

 

0.1

%

Total Portfolio

 

$

823,381

 

100.0

%

ABR is in thousands; any differences are the result of rounding.

(1)

Refer to the Glossary for the Company's definition of ABR.

Geographic Diversification

The following table presents annualized base rents for all states that represent 1.5% or greater of the Company’s total annualized base rent as of September 30, 2026:

State

 

ABR(1)

 

% of Total ABR

Texas

 

$

59,052

 

7.2

%

Illinois

 

 

47,215

 

5.7

%

North Carolina

 

 

42,226

 

5.1

%

Ohio

 

 

42,100

 

5.1

%

Michigan

 

 

41,282

 

5.0

%

Pennsylvania

 

 

39,243

 

4.8

%

New York

 

 

38,614

 

4.7

%

Florida

 

 

37,738

 

4.6

%

California

 

 

35,434

 

4.3

%

Georgia

 

 

31,422

 

3.8

%

New Jersey

 

 

27,300

 

3.3

%

Wisconsin

 

 

25,902

 

3.1

%

Missouri

 

 

23,093

 

2.8

%

Louisiana

 

 

21,406

 

2.6

%

Virginia

 

 

20,769

 

2.5

%

South Carolina

 

 

19,421

 

2.4

%

Minnesota

 

 

19,218

 

2.3

%

Mississippi

 

 

19,206

 

2.3

%

Kansas

 

 

16,979

 

2.1

%

Connecticut

 

 

16,667

 

2.0

%

Massachusetts

 

 

15,965

 

1.9

%

Alabama

 

 

15,801

 

1.9

%

Indiana

 

 

15,718

 

1.9

%

Tennessee

 

 

15,656

 

1.9

%

Oklahoma

 

 

12,782

 

1.6

%

Other(2)

 

 

123,172

 

15.1

%

Total Portfolio

 

$

823,381

 

100.0

%

ABR is in thousands; any differences are the result of rounding.

(1)

Refer to the Glossary for the Company's definition of ABR.

(2)

Includes states generating less than 1.5% of ABR.

Capital Markets, Liquidity and Balance Sheet

Capital Markets

In September 2026, the Company completed a $400.0 million public bond offering of 5.65% senior unsecured notes due 2036 (the "Notes"). In connection with the offering, the Company terminated related swap agreements of $300.0 million, receiving net proceeds of $19.4 million upon termination. Considering the effect of the terminated swap agreements, the all-in rate to the Company for the Notes is 5.36%.

During the third quarter, the Company settled 5.7 million shares under existing forward sale agreements for net proceeds of $425.7 million.

The following table presents the Company’s outstanding forward equity offerings as of September 30, 2026:

 

 

 

 

 

 

 

 

 

 

Anticipated Net

Forward Equity

 

Shares

 

Shares

 

Shares

 

Net Proceeds

 

Proceeds

Offerings

 

Sold

 

Settled

 

Remaining

 

Received

 

Remaining

Q1 2026 ATM Forward Offerings

 

8,738,029

 

375,189

 

8,362,840

 

 $

26,897,562

 

 $

626,111,096

Q2 2026 ATM Forward Offerings

 

399,886

 

—

 

399,886

 

 

—

 

 

31,012,639

Total Forward Equity Offerings

 

9,137,915

 

375,189

 

8,762,726

 

$

26,897,562

 

$

657,123,735

Liquidity

As of September 30, 2026, the Company had total liquidity of approximately $2.0 billion, which includes $1.25 billion of availability under its revolving credit facility, $657.1 million of outstanding forward equity, and $91.5 million of cash on hand. The Company’s $1.25 billion revolving credit facility includes an accordion option that allows the Company to request additional lender commitments of up to a total of $2.0 billion.

Balance Sheet

As of September 30, 2026, the Company’s net debt to recurring EBITDA was 4.8 times. The Company’s proforma net debt to recurring EBITDA was 3.9 times when deducting the $657.1 million of anticipated net proceeds from the outstanding forward equity offerings from the Company’s net debt of approximately $3.7 billion as of September 30, 2026. The Company’s fixed charge coverage ratio was 4.1 times at quarter end. The Company’s net debt to enterprise value was 29.2% as of September 30, 2026.

For the three and nine months ended September 30, 2026, the Company's fully diluted weighted-average shares outstanding were 124.6 million and 121.9 million, respectively. The basic weighted-average shares outstanding for the three and nine months ended September 30, 2026 were 124.4 million and 121.4 million, respectively.

For the three and nine months ended September 30, 2026, the Company's fully diluted weighted-average shares and units outstanding were 125.0 million and 122.2 million, respectively. The basic weighted-average shares and units outstanding for the three and nine months ended September 30, 2026 were 124.7 million and 121.8 million, respectively.

The Company’s assets are held by, and its operations are conducted through, the Operating Partnership, of which the Company is the sole general partner. As of September 30, 2026, there were 347,619 Operating Partnership common units outstanding, and the Company held a 99.7% common interest in the Operating Partnership.

Conference Call/Webcast

The Company will host its quarterly analyst and investor conference call on Wednesday, October 21, 2026 at 9:00 AM ET. To participate in the conference call, please dial (833) 461-5787 approximately ten minutes before the call begins.

Additionally, a webcast of the conference call will be available via the Company’s website. To access the webcast, visit www.agreerealty.com five minutes prior to the start of the conference call and go to the Investors section of the website. A replay of the conference call webcast will be archived and available online through the Investors section of www.agreerealty.com.

About Agree Realty Corporation

Agree Realty Corporation is a publicly traded real estate investment trust that is RETHINKING RETAIL through the acquisition and development of properties net leased to industry-leading, omni-channel retail tenants. As of September 30, 2026, the Company owned and operated a portfolio of 2,888 properties, located in all 50 states and the District of Columbia, comprised of approximately 61.1 million square feet of gross leasable area. The Company’s common stock is listed on the New York Stock Exchange under the symbol “ADC”. For additional information on the Company and RETHINKING RETAIL, please visit www.agreerealty.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe the Company’s future plans, strategies and expectations, are generally identifiable by use of the words “anticipate,” “estimate,” “should,” “expect,” “believe,” “intend,” “may,” “will,” “seek,” “could,” “project” or other similar words or expressions.


Contacts

Peter Coughenour
Chief Financial Officer
Agree Realty Corporation
(248) 737-4190


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