Agree Realty(US:ADC)2023-07-31 16:00Financial Performance - Total revenues for the three months ended June 30, 2023, were $129.9 million, a 23.9% increase from $104.9 million in the same period of 2022[18]. - Net income attributable to common stockholders for the six months ended June 30, 2023, was $78.8 million, compared to $68.4 million for the same period in 2022, reflecting a 15.5% increase[18]. - Rental income for the three months ended June 30, 2023, was $129.9 million, up from $104.8 million in the prior year, representing a 23.9% growth[18]. - The company reported a net income per share attributable to common stockholders of $0.42 for the three months ended June 30, 2023, compared to $0.45 for the same period in 2022[18]. - Net income for the three months ended June 30, 2023, was $41,015, compared to $41,774 for the previous quarter, indicating a decrease of about 1.8%[20]. - Net income for the six months ended June 30, 2023, increased to $82,789 from $72,419 in the same period of 2022, representing a growth of approximately 18.5%[26]. - The company reported a net income of $39,009 for the three months ended June 30, 2023, compared to $39,755 for the previous quarter, showing a decline of about 1.9%[20]. Assets and Liabilities - Total assets increased to $7.27 billion as of June 30, 2023, from $6.71 billion as of December 31, 2022, marking an 8.3% growth[8]. - Total liabilities increased to $2.29 billion as of June 30, 2023, from $2.08 billion as of December 31, 2022, indicating a 10.1% rise[11]. - The company’s equity increased to $4.98 billion as of June 30, 2023, from $4.63 billion as of December 31, 2022, reflecting a 7.5% increase[14]. - Cash and cash equivalents decreased to $8.1 million as of June 30, 2023, from $27.8 million as of December 31, 2022[8]. - The balance of additional paid-in capital as of June 30, 2023, was $5,060,200, up from $4,852,927 on March 31, 2023[20]. Cash Flow and Investments - Net cash provided by operating activities rose to $183,728, compared to $150,089 for the same period in 2022, marking an increase of about 22.5%[26]. - The company reported a net cash used in investing activities of $(663,373), an improvement from $(821,550) in the prior year, indicating a reduction of about 19.2%[26]. - Proceeds from common stock offerings, net, were $400,237, down from $550,794, a decrease of approximately 27.3%[26]. - The company’s acquisition of real estate investments and other assets totaled $(610,593), a decrease from $(799,166) in the prior year, indicating a reduction of about 23.6%[26]. Expenses - The company’s operating expenses for the six months ended June 30, 2023, were $134.7 million, compared to $102.2 million for the same period in 2022, a 31.7% increase[18]. - General and administrative expenses rose by $0.7 million, or 10%, to $8.4 million, primarily due to increased employee headcount and compensation costs[204]. - Interest expense increased by $4.4 million, or 29%, to $19.9 million, driven by higher borrowings and interest rates[205]. Dividends and Shareholder Returns - Cash dividends declared per common share for the three months ended June 30, 2023, was $0.729, up from $0.720 for the previous quarter, representing a growth of 1.2%[20]. - Dividends and distributions declared for the period ending June 30, 2023, totaled $68,940, compared to $66,189 for the previous period, reflecting an increase of approximately 4.2%[20]. - The Company declared monthly dividends of $0.243 per common share for the three months ended June 30, 2023, compared to $0.234 for the same period in 2022[134]. Real Estate Portfolio - As of June 30, 2023, the Company owned 2,004 properties with a total gross leasable area (GLA) of approximately 41.7 million square feet, and net real estate investments totaled $6.3 billion[96]. - The Company’s real estate investment portfolio grew from approximately $5.1 billion in net investment amount as of June 30, 2022, to approximately $6.3 billion as of June 30, 2023, representing an increase of about 23.5%[198]. - The total lease payments for the three months ended June 30, 2023, were $135.7 million, compared to $110.1 million for the same period in 2022, representing a 23.3% increase[86]. - The Company had 22 development or Partner Capital Solutions projects under construction as of June 30, 2023[203]. Debt and Financing - The Company had total gross indebtedness of $2.16 billion as of June 30, 2023, including $1.81 billion of senior unsecured notes and $303.0 million outstanding under the Revolving Credit Facility[105]. - The weighted average interest rate on the Company's mortgage notes payable was 3.92% as of June 30, 2023[106]. - The Revolving Credit Facility has a total commitment of $1.0 billion and will mature in January 2026, with options to extend to January 2027[116]. - The Company closed on an unsecured $350 million 5.5-year term loan on July 31, 2023, with an interest rate fixed at 4.52%[188]. Tax and Compliance - The Company believes it has qualified as a REIT, thus no provision has been made for federal income taxes on distributed amounts[68]. - The Company recognized total federal and state tax expense of approximately $0.7 million for the three months ended June 30, 2023, consistent with the same period in 2022[138]. - The Company was in compliance with all loan covenants as of June 30, 2023, with the most restrictive being the minimum unencumbered interest expense ratio[122].