Core Insights - Agree Realty (ADC) is a net lease REIT that has demonstrated consistent performance, with results this quarter exceeding expectations and guidance being raised again [1][2] - The company reported its largest quarterly investment volume since the COVID pandemic, deploying over $450 million across various platforms while maintaining disciplined underwriting [1] Financial Performance - FFO and AFFO metrics surpassed consensus estimates by $0.02, with the revised midpoint for full-year 2025 AFFO per share slightly above analyst expectations at $4.32 [2][4] - The company ended the quarter with approximately 111.5 million weighted-average shares outstanding and has around 14 million unsettled forward shares available for future acquisitions [6] Acquisition and Investment Strategy - ADC invested $451 million during Q3 2025 across 110 high-quality retail net lease assets in 34 states, with a 7.2% cap rate and a 10.7-year weighted-average lease term [10] - The company continues to find attractive properties in a competitive market, reinforcing its long-standing strategy of long leases and high credit quality [7] Guidance and Outlook - Revised guidance for 2025 includes an increase in AFFO per share from a range of $4.29 to $4.32 to a new range of $4.31 to $4.33, along with adjustments in other financial metrics [8] - Treasury yields have been falling, which may positively impact valuations for net lease REITs in future quarters, suggesting potential for a modest increase in price targets [13] Equity Issuance and Forward Sales - ADC has been selective in issuing shares to fund acquisitions, utilizing forward sales to align funding with acquisition timing and prevent idle cash on the balance sheet [3][5] - The company was active in initiating forward sales during Q3 2024, but has slowed down since then due to a large amount of shares waiting to be settled [4]

Q2 2025 Financial Performance - Total property revenue increased by 1.2% year-over-year to $2.527 billion, with a 1.9% increase on an FX-neutral basis[5] - Total revenue increased by 3.2% year-over-year to $2.627 billion, with a 3.9% increase on an FX-neutral basis[5] - Net income attributable to AMT common stockholders decreased by 59.3% to $367 million, with a per diluted share of $0.78[5] - Adjusted EBITDA increased by 1.8% year-over-year to $1.752 billion, with a 2.6% increase on an FX-neutral basis; Adjusted EBITDA margin was 66.7%[5] - AFFO attributable to AMT common stockholders decreased by 6.7% to $1.218 billion, with a per diluted share of $2.60; As adjusted, AFFO increased by 2.6% to $1.218 billion, with a per diluted share of $2.60[5] 2025 Outlook Revisions - The company raised the 2025 property revenue outlook by $165 million to $10.21 billion, representing ~3% year-over-year growth[20] - The company raised the 2025 Adjusted EBITDA outlook by $120 million to $7.04 billion, representing >3% year-over-year growth[27] - The company raised the 2025 Attributable AFFO outlook by $55 million to $4.95 billion, or $10.56 per share, representing ~6% year-over-year per share growth (as adjusted)[31] Capital Allocation - The company plans to deploy $1.5 billion in discretionary capital projects, with approximately 40% allocated to U.S. Data Centers, 25% to U.S. & Canada, 15% to Europe, and 20% to Emerging Markets[36] - The company targets a common dividend declaration of approximately $3.2 billion[39]