[PART I: Financial Information](index=4&type=section&id=PART%20I%20Financial%20Information) [Item 1: Financial Statements (Unaudited)](index=4&type=section&id=Item%201%3A%20Financial%20Statements%20(Unaudited)) The unaudited financial statements show asset growth to $9.08 billion and increased revenues, though net income declined due to higher expenses [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance Sheet Summary (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$9,084,744** | **$8,486,446** | | Net real estate investments | $7,958,625 | $7,418,108 | | **Total Liabilities** | **$3,430,340** | **$2,975,785** | | Senior unsecured notes, net | $2,582,892 | $2,237,759 | | Unsecured revolving credit facility and commercial paper notes | $247,000 | $158,000 | | **Total Equity** | **$5,654,404** | **$5,510,661** | [Condensed Consolidated Statements of Operations and Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) Statement of Operations Summary (in thousands, except per-share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $175,527 | $152,575 | $344,687 | $302,029 | | Income from Operations | $82,006 | $81,967 | $160,701 | $152,465 | | Net Income | $49,353 | $54,913 | $96,501 | $99,927 | | Net Income Attributable to Common Stockholders | $47,339 | $52,865 | $92,476 | $95,865 | | Diluted EPS | $0.43 | $0.52 | $0.85 | $0.95 | [Condensed Consolidated Statements of Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) - Total equity increased from **$5.51 billion** at the end of 2024 to **$5.65 billion** as of June 30, 2025, primarily driven by net income and the issuance of common stock, net of dividends[13](index=13&type=chunk) - Cash dividends declared per common share increased to **$0.768 for Q2 2025**, up from $0.750 in Q2 2024[13](index=13&type=chunk)[15](index=15&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $246,302 | $211,962 | | Net Cash Used in Investing Activities | ($725,812) | ($302,085) | | Net Cash Provided by Financing Activities | $482,022 | $99,853 | | **Increase in Cash** | **$2,512** | **$9,730** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - As of June 30, 2025, the Company owned **2,513 properties** with a total gross leasable area (GLA) of approximately **52.0 million square feet**[21](index=21&type=chunk) Real Estate Activity - Six Months Ended June 30, 2025 (dollars in thousands) | Activity | Count | Amount | | :--- | :--- | :--- | | Properties Acquired | 137 | $687,371 | | Properties Sold | 5 | $8,158 (Net Proceeds) | | Properties Impaired | 7 | $7,292 (Provision) | - In May 2025, the company issued **$400.0 million of 5.600% Senior Unsecured Public Notes** due 2035 and repaid $50.0 million of notes at maturity[105](index=105&type=chunk)[106](index=106&type=chunk) - In March 2025, the company established a commercial paper program, allowing it to issue up to **$625.0 million** in short-term unsecured notes; as of June 30, 2025, **$247.0 million was outstanding**[114](index=114&type=chunk)[107](index=107&type=chunk) - In April 2025, the company completed a follow-on public offering of **5,175,000 shares** of common stock via forward sale agreements, with anticipated net proceeds of approximately **$387.2 million**[119](index=119&type=chunk) [Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations](index=53&type=section&id=Item%202%3A%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses portfolio growth, revenue increases from acquisitions, and declining net income due to higher interest, G&A, and impairment costs [Results of Operations](index=55&type=section&id=Results%20of%20Operations) Comparison of Three Months Ended June 30, 2025 vs 2024 (in thousands) | Item | Q2 2025 | Q2 2024 | Variance ($) | Variance (%) | | :--- | :--- | :--- | :--- | :--- | | Rental Income | $175,397 | $152,424 | $22,973 | 15% | | Interest Expense, net | $32,274 | $26,416 | $5,858 | 22% | | Net Income | $49,353 | $54,913 | ($5,560) | -10% | - The increase in rental income was driven by the acquisition of new properties; the rise in interest expense was primarily due to higher borrowing levels to finance these acquisitions, including the issuance of **$400.0 million in new notes** in May 2025[187](index=187&type=chunk)[189](index=189&type=chunk) - For the six months ended June 30, 2025, **net income decreased by 3% to $96.5 million** compared to the same period in 2024, reflecting portfolio growth offset by higher expenses and a **$7.3 million impairment provision**[198](index=198&type=chunk)[203](index=203&type=chunk) [Liquidity and Capital Resources](index=61&type=section&id=Liquidity%20and%20Capital%20Resources) - As of June 30, 2025, the company had over **$2.30 billion of liquidity**, consisting of cash, unsettled forward equity, and availability under its Revolving Credit Facility[208](index=208&type=chunk) - Recent capital activities include a **$400.0 million public offering of 5.600% Notes** due 2035 in May 2025 and a follow-on public offering of **5,175,000 common shares** in April 2025[205](index=205&type=chunk)[206](index=206&type=chunk) - The company's total debt to total enterprise value was **28.2%** as of June 30, 2025[212](index=212&type=chunk) Material Cash Requirements as of June 30, 2025 (in thousands) | Obligation | Remainder of 2025 | 2026 | 2027 | 2028 | 2029 | Thereafter | Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Debt Principal | $247,520 | $629 | $50,000 | $410,000 | $492,250 | $2,050,000 | $3,250,399 | | Land Lease Obligations | $999 | $2,022 | $1,884 | $1,855 | $1,846 | $34,702 | $43,308 | [Non-GAAP Financial Measures](index=74&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP Performance (per diluted share/unit) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | FFO | $0.97 | $0.95 | $1.93 | $1.88 | | Core FFO | $1.05 | $1.03 | $2.09 | $2.05 | | AFFO | $1.06 | $1.04 | $2.12 | $2.07 | [Item 3: Quantitative and Qualitative Disclosures about Market Risk](index=77&type=section&id=Item%203%3A%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate fluctuation, which is managed through fixed-rate debt and interest rate swaps - The company's main market risk is interest rate risk, managed by monitoring its variable rate debt and using derivative instruments like interest rate swaps[263](index=263&type=chunk)[268](index=268&type=chunk) - The company has effectively fixed the interest rate on its **$350.0 million 2029 Unsecured Term Loan at 3.57%** through interest rate swaps[269](index=269&type=chunk) - A hypothetical **100-basis point increase** in market interest rates would change the annual interest expense on the **$247.0 million** of outstanding Commercial Paper Notes by approximately **$2.5 million**[274](index=274&type=chunk) [Item 4: Controls and Procedures](index=79&type=section&id=Item%204%3A%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal controls over financial reporting were effective, with no material changes during the quarter - The Principal Executive Officer and Principal Financial Officer concluded that disclosure controls and procedures were **effective** as of the end of the reporting period[275](index=275&type=chunk) - There were **no changes** in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, these controls[276](index=276&type=chunk) [PART II: Other Information](index=79&type=section&id=PART%20II%20Other%20Information) [Item 1: Legal Proceedings](index=79&type=section&id=Item%201%3A%20Legal%20Proceedings) The company is not involved in any material litigation outside of routine matters covered by insurance - The Company is **not presently involved in any material litigation**[277](index=277&type=chunk) [Item 1A: Risk Factors](index=79&type=section&id=Item%201A%3A%20Risk%20Factors) There are no material changes from the risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K - The report refers to the risk factors detailed in the **Annual Report on Form 10-K for the year ended December 31, 2024**[278](index=278&type=chunk) [Item 2: Unregistered Sales of Equity Securities and Use of Proceeds](index=80&type=section&id=Item%202%3A%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company withheld a small number of shares for employee tax obligations and made minor share repurchases Common Stock Repurchases Q2 2025 | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | April 2025 | 42 | $78.72 | | May 2025 | 86 | $75.17 | | June 2025 | 0 | — | | **Total** | **128** | **$76.33** | [Item 3: Defaults Upon Senior Securities](index=80&type=section&id=Item%203%3A%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon its senior securities during the period - None[281](index=281&type=chunk) [Item 4: Mine Safety Disclosures](index=80&type=section&id=Item%204%3A%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[282](index=282&type=chunk) [Item 5: Other Information](index=80&type=section&id=Item%205%3A%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the quarter - No director or officer adopted or terminated any Rule 10b5-1 trading arrangement during the quarter[283](index=283&type=chunk) [Item 6: Exhibits](index=81&type=section&id=Item%206%3A%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including required CEO and CFO certifications - Lists filed exhibits, including **CEO and CFO certifications (Sections 302 and 906)** and Inline iXBRL data[285](index=285&type=chunk)[286](index=286&type=chunk) [Signatures](index=84&type=section&id=SIGNATURES)

Core Viewpoint - The article discusses the current market trends and potential investment opportunities within specific sectors, emphasizing the importance of thorough analysis in making informed investment decisions [2]. Group 1: Market Trends - Recent market fluctuations have highlighted the volatility in certain sectors, prompting investors to reassess their strategies [2]. - The technology sector continues to show strong growth potential, driven by advancements in artificial intelligence and cloud computing [2]. Group 2: Investment Opportunities - Companies focusing on renewable energy are gaining traction, with significant investments flowing into this sector as governments push for sustainability [2]. - The healthcare industry is also poised for growth, particularly in biotechnology and telehealth services, which have seen increased demand due to recent global health challenges [2].

Core Viewpoint - Annaly Capital offers a high dividend yield nearing 15%, but it may not be a reliable long-term investment compared to lower-yielding, growth-oriented companies like Agree Realty and PepsiCo [1][11]. Group 1: Annaly Capital's Business Model - Annaly Capital operates as a mortgage REIT, focusing on high dividend payouts, but this model relies on reinvesting dividends for strong total returns [2]. - Without reinvesting dividends, investors may face diminishing capital and income, leading to a shrinking portfolio value over time [4]. - The substantial dividends paid out are essentially a return of principal, making it difficult for Annaly to sustain its high yield in the long run [5][11]. Group 2: Alternatives to Annaly Capital - Agree Realty, with a dividend yield of 4.2%, has successfully doubled its property portfolio from about 1,200 to over 2,400 properties in five years, allowing for consistent dividend growth of approximately 5% annually [7][8]. - PepsiCo's stock has decreased by roughly 30% from its 2023 highs, resulting in a historically high dividend yield of around 4.3%. Despite current operating challenges, PepsiCo continues to focus on growth through acquisitions, maintaining a 53-year streak of annual dividend increases with a 7% annualized growth rate over the past five years [9][10].

Group 1 - The investment approach has received over 500 five-star reviews from members, indicating high satisfaction and perceived benefits [1] - The company invests significant resources, over $100,000 annually, into researching profitable real estate investment opportunities [1] - The leader of the investing group High Yield Landlord shares real-time transactions and maintains three distinct portfolios: core, retirement, and international [2] Group 2 - Jussi Askola, the President of Leonberg Capital, is recognized for his expertise in REIT investing and has authored award-winning academic papers on the subject [2] - The investing group offers features such as buy/sell alerts and direct access to analysts for member inquiries [2]

Company Overview - Agree Realty Corporation (NYSE: ADC) is the focus of the article, which discusses its credit rating and financial instruments [1]. Financial Instruments - The article aims to provide insights into the credit rating of Agree Realty Corporation and its associated financial instruments [1].

Group 1 - The debt market is anticipating that the Federal Reserve will likely cut interest rates at their meeting on September 17th after a 7-month pause in cuts [1] - The company has released its latest top investment picks for July 2025, providing immediate access to these opportunities for new members [1] - The company invests over $100,000 annually into researching profitable investment opportunities, focusing on real estate strategies [1] Group 2 - The company's approach has garnered over 500 five-star reviews from satisfied members who are experiencing positive returns [2] - There is an emphasis on maximizing returns for members who join the investment program [2]

Group 1 - When stock prices decline without clear reasons, it raises concerns among investors about potential underlying issues within the business [1] Group 2 - The article emphasizes the importance of conducting due diligence and encourages investors to build portfolios of high-quality, dividend-paying companies [2] - The author expresses a personal investment strategy focused on long-term holdings in blue-chip stocks, BDCs, and REITs to supplement retirement income [2]

Core Insights - Innovent Biologics announced the publication of Phase 1 clinical study results for IBI343, an anti-CLDN18.2 ADC, in Nature Medicine, highlighting its potential in treating advanced gastric/gastroesophageal junction adenocarcinoma [1][4][8] - Gastric cancer is a significant global health issue, ranking as the fifth most common malignant tumor with approximately 970,000 new cases and 660,000 deaths annually, with China accounting for a substantial portion of these figures [2][10] - The study demonstrated promising efficacy and safety profiles for IBI343, with an overall response rate of 32.3% at 6 mg/kg and 47.1% at 8 mg/kg, indicating its potential as a new treatment option [7][8][12] Company Overview - Innovent Biologics is a leading biopharmaceutical company focused on developing high-quality medicines for various diseases, including oncology, cardiovascular, and autoimmune disorders [16][17] - The company has launched 16 products and has multiple assets in clinical trials, including IBI343, which is currently undergoing a multi-regional Phase 3 trial for advanced gastric cancer [17][14] Clinical Study Details - The Phase 1 clinical trial enrolled 116 patients with advanced G/GEJ adenocarcinoma, assessing the safety, tolerability, and preliminary efficacy of IBI343 [4][6] - The study found that 66.4% of patients experienced grade ≥3 treatment-emergent adverse events, with the most common being decreased neutrophil count and white blood cell count [6][8] - The recommended Phase 2 dose of IBI343 is established at 6 mg/kg, supporting its advancement to Phase 3 trials [8][14] Market Need - There is a significant unmet medical need for effective treatments for advanced gastric cancer, with current standard therapies offering limited efficacy and poor prognosis for patients [10][12] - The high incidence of gastric cancer in China and Japan underscores the urgency for innovative treatment options like IBI343 [10][11] Future Directions - The Phase 3 trial (G-HOPE-001) aims to further evaluate IBI343 against standard treatments, with the goal of reshaping clinical practice in gastric cancer management [9][14] - Innovent is also exploring the therapeutic potential of IBI343 in other cancers, such as pancreatic cancer, indicating a broader application of this innovative therapy [9][15]

Core Insights - Defence Therapeutics Inc. is advancing its ADC and Radiopharma programs, focusing on collaborations and preclinical studies for cancer therapies using its Accum® technology [1][2][3] ADC Program - Defence's Accum®-based ADCs show improved intracellular delivery and cytotoxic activity in various preclinical cancer models compared to traditional ADCs [2] - The company is optimizing additional Accum®-based ADCs to enhance their value and attract potential licensing and co-development opportunities with Pharmaceuticals and Biotech companies [2] Radiopharmaceutical Program - The Radiopharma program is enhancing Accum® radiolabelling through studies conducted by Canadian Nuclear Laboratories, focusing on biodistribution, pharmacokinetics, and therapeutic potency [3] - The application of Accum® technology in the radiopharmaceuticals sector is expected to be transformative [3] Market Outlook - The global ADC market is projected to grow from USD 13.51 billion in 2025 to USD 29.9 billion by 2034, with a CAGR of 9.23% from 2024 to 2034 [4] - The global radiopharmaceutical market is expected to reach USD 16.87 billion by 2033, growing at a CAGR of 9.9% during 2025-2033 [4] Future Developments - The company plans to announce key results and partnership details as they become available, while continuing its studies in Canada and expanding its presence to the US [5] - Defence Therapeutics is a clinical-stage biotechnology company focused on developing next-generation ADC products using its proprietary Accum® technology [6]

Core Viewpoint - The article discusses the ongoing activities and offerings of a real estate investment community, emphasizing its growth and member satisfaction [1]. Group 1 - The community has over 2,000 members and maintains a perfect rating of 5/5 from more than 400 reviews [1]. - A limited-time offer is available for new members to join at a significantly reduced rate [1]. - The community provides a 2-week free trial for potential members to access the entire portfolio and current top picks [1].