Agree Realty(US:ADC)2025-10-21 20:05Financial Performance - Net income for Q3 2025 increased 18.2% to $50.3 million, with net income per share rising 7.9% to $0.45 compared to Q3 2024[4] - Core FFO for Q3 2025 increased 18.9% to $122.4 million, with core FFO per share up 8.4% to $1.09 compared to Q3 2024[6] - AFFO for Q3 2025 increased 17.5% to $123.1 million, with AFFO per share rising 7.2% to $1.10 compared to Q3 2024[9] - Total revenues for the three months ended September 30, 2025, were $183.222 million, a 18.7% increase from $154.332 million for the same period in 2024[55] - Rental income for the nine months ended September 30, 2025, was $527.701 million, compared to $456.139 million for the same period in 2024, reflecting a 15.7% increase[55] - Net income attributable to common stockholders for the three months ended September 30, 2025, was $50.258 million, up from $42.516 million in the same period of 2024, representing an 18.5% increase[55] - Funds from Operations (FFO) for the three months ended September 30, 2025, reached $112,926,000, compared to $94,566,000 in the prior year, reflecting a year-over-year increase of 19.4%[57] - Core Funds from Operations (Core FFO) for the three months ended September 30, 2025, were $122,354,000, up from $102,943,000 in the same quarter of 2024, indicating a growth of 19.0%[57] - Total Rental Income for the three months ended September 30, 2025, was $183,191,000, compared to $154,292,000 in the same period of 2024, marking an increase of 18.8%[68] Investment and Development - The company raised its 2025 investment guidance to a range of $1.50 billion to $1.65 billion[18] - Total acquisition volume for Q3 2025 was approximately $401.4 million, with properties acquired at a weighted-average capitalization rate of 7.2%[22] - The company commenced five development projects in Q3 2025 with total anticipated costs of approximately $50.8 million[27] Portfolio and Leasing - The portfolio consisted of 2,603 properties, approximately 99.7% leased, generating 66.7% of annualized base rents from investment grade retail tenants[19] - For the nine months ended September 30, 2025, the Company executed new leases, extensions, or options on approximately 2.4 million square feet of gross leasable area[31] - As of September 30, 2025, the Company's total annualized base rent was $707.84 million, with 0.2% of annualized base rents maturing in 2025[31] - The top tenant, Walmart, contributed $41.155 million, representing 5.8% of the total annualized base rent[32] - The annualized base rent for grocery stores was $72.94 million, accounting for 10.3% of the total[34] Financial Position and Liquidity - Total liquidity at quarter end was over $1.9 billion, positioning the balance sheet for growth[8] - The Company had total liquidity of $1.9 billion as of September 30, 2025, including $861 million available under its revolving credit facility[38] - The Company's net debt to recurring EBITDA was 5.1 times, with a proforma ratio of 3.5 times when accounting for anticipated net proceeds from forward equity offerings[39] - The total debt to enterprise value was 29.0% as of September 30, 2025[40] - The Company settled 3.5 million shares under existing forward sale agreements for net proceeds of $252 million during the third quarter[37] - The Company received commitments for an unsecured $350 million term loan with a fixed interest rate of 4.02%[36] - The company reported a total debt of $3,392,141,000 as of September 30, 2025, with a net debt of $3,375,263,000 after accounting for cash and cash equivalents[62] - The ratio of Net Debt to Recurring EBITDA was 5.1x, indicating the company's leverage position[62] - The anticipated net proceeds from Forward Equity Offerings are approximately $1.0 billion, expected to be settled between October 2025 and October 2026[64] - Annualized Recurring EBITDA for the three months ended September 30, 2025, was $663,056,000, providing insight into the company's operating cash flow[62] Company Ratings and Events - The company achieved an A- issuer rating from Fitch Ratings with a stable outlook[8] - The company will host its quarterly analyst and investor conference call on October 22, 2025[44] Assets and Liabilities - The total assets of the company increased to $9.484 billion as of September 30, 2025, compared to $8.486 billion as of December 31, 2024, marking a 11.7% growth[53] - The company's total liabilities rose to $3.610 billion as of September 30, 2025, from $2.976 billion as of December 31, 2024, indicating a 21.4% increase[53] Shareholder Information - The company declared a monthly dividend of $0.256 per common share for Q3 2025, representing a 2.4% year-over-year increase[11] - The company’s weighted average shares outstanding increased from 100,730,826 in Q3 2024 to 111,624,935 in Q3 2025, reflecting a growth in share count[57] Accounting and Valuation - Adjustments to recognize minimum rents on a straight-line basis are consistent with FASB ASC 842 requirements[70] - Fair value allocation of acquired properties includes above- and below-market lease intangibles based on the present value of lease payment differences[70] - The weighted-average capitalization rate for acquisitions and dispositions is defined as the sum of contractual fixed annual rents divided by the purchase and sale prices for occupied properties[49]