Agree Realty(US:ADC) ZACKS·2026-01-06 16:25Core Insights - Agree Realty Corporation (ADC) reported strong investment activity in 2025, deploying approximately $1.55 billion into retail net lease properties across 41 states, including 338 properties net leased to top-tier tenants [1][9] - The company has reinforced its investment-grade tenant base, with about 66.8% of annualized base rent coming from high-credit tenants as of December 31, 2025, enhancing income stability and long-term cash flow [2][9] - ADC's balance sheet strength is notable, with over $2 billion in liquidity, positioning the REIT to capitalize on acquisition and development opportunities in 2026 [4][5] Investment Activity - In 2025, the company acquired 305 retail net lease properties valued at around $1.44 billion at a 7.2% cap rate, with remaining long-lease terms averaging 11.5 years [3] - Approximately 64.9% of annualized base rents acquired came from investment-grade tenants, contributing to resilient earnings in a competitive retail environment [3] Future Outlook - Agree Realty forecasts 2026 investment activity between $1.25 billion and $1.5 billion, supported by its three growth platforms: acquisitions, development, and the Developer Funding Platform (DFP) [5][6] - The company's disciplined approach reflects a focus on high-quality retail tenants and strategic capital allocation, with a strong pipeline and conservative balance sheet providing a solid foundation for continued earnings growth [5][6] Market Performance - Shares of Agree Realty have increased by 1.9% over the past three months, contrasting with the industry's decline of 0.9% [7] - The Zacks Consensus Estimate for its 2025 and 2026 funds from operations (FFO) per share has slightly increased to $4.31 and $4.54, respectively [7]