Agree Realty(US:ADC)2026-02-10 21:06Portfolio Overview - As of December 31, 2025, the company's portfolio consisted of 2,674 properties totaling approximately 55.5 million square feet of Gross Leasable Area (GLA), with a leasing rate of approximately 99.7%[14] - The company executed new leases, extensions, or options on approximately 3,033,000 square feet of GLA in 2025, resulting in an annualized base contractual rent of approximately $29.7 million[21] - The company focuses on long-term ownership of properties net leased to national or large regional retailers, aiming for a diversified portfolio to ensure stable cash flow[31] Financial Performance - In 2025, the company completed approximately $1.57 billion of investments in net leased retail real estate, acquiring 305 properties for about $1.44 billion and developing 21 properties for approximately $131.2 million[19] - The company sold 22 assets and land parcels for net proceeds of $42.1 million in 2025, recording a net gain of $5.4 million[20] - The monthly dividend per common share was increased from $0.253 to $0.262 in October 2025, representing an annualized dividend yield of approximately 4.4% based on a stock price of $72.03[22] Capital Structure and Financing - As of December 31, 2025, the company's total debt outstanding was $3.32 billion, including $2.96 billion of unsecured borrowings with a weighted average fixed interest rate of 4.05%[42] - The company's ratio of total debt to enterprise value was approximately 27.4%, and the ratio of total debt to total gross assets was approximately 31.6%[41] - The company maintains a capital structure primarily consisting of common equity and prudent amounts of preferred equity and debt financing to manage growth strategies[37] - The company utilizes various financing methods, including common and preferred stock equity offerings and secured mortgage borrowings, to meet capital requirements[38] Investment Strategy - The company emphasizes investments in net lease retail real estate, focusing on recession-resistant sectors and operators with strong credit profiles[39] - Approximately 66.8% of the company's annualized base rent was derived from tenants with an investment grade credit rating[14] - No tenant accounted for more than 10.0% of the company's annualized base rent as of December 31, 2025, indicating a diversified tenant base[47] Operational Efficiency - The company has a proactive leasing and capital improvement program, emphasizing the quality of construction and regular maintenance to attract tenants[44] - The company has a management information system that provides rapid access to lease data and tenants' sales history to maximize cash flow from operations[45] Team and Leadership - The company had 90 full-time team members as of December 31, 2025, an increase from 75 team members in the previous year[52] - The company emphasizes professional development and offers a range of training programs to enhance team members' skills and career advancement[54] - The company has established a succession plan for the Chief Executive Officer to ensure continuity in leadership[70] Sustainability and ESG - The company has engaged a third-party consultant since 2022 to enhance its ESG strategy and received Gold Level recognition from Green Lease Leaders for three consecutive years[60]