What factors contributed to ADC's consistent earnings surprises in 2024?

Agree Realty Corporation (ADC) experienced consistent earnings surprises in 2024 due to a combination of strategic initiatives and robust financial performance across various quarters.

1. **Strategic Initiatives**: ADC's focus on managing credit risk and investing in e-commerce and recession-resistant retail categories has bolstered its financial flexibility. This strategic approach likely contributed to the company's ability to exceed earnings expectations.
2. **Acquisition Activity**: ADC raised its 2024 acquisition guidance to approximately $850 million, indicating a proactive approach to expanding its portfolio. Such aggressive growth initiatives can often lead to higher revenues and, consequently, earnings that surpass expectations.
3. **Financial Flexibility**: The company's enhanced financial flexibility, likely a result of strategic capital markets activities, has provided the resources needed to take advantage of investment opportunities and potentially increase earnings.
4. **Portfolio Optimization**: ADC's focus on optimizing its portfolio, including adaptive reuse capabilities and supporting omnichannel retailing, suggests a proactive approach to maximizing property values and rental income. This strategic focus likely contributed to better-than-expected earnings.
5. **Industry Position**: As a leading player in the retail REIT sector, ADC benefits from industry trends that favor retail real estate, such as consumers' preference for in-store shopping experiences and limited new supply of retail space. This favorable industry outlook likely supported ADC's earnings growth.

In summary, ADC's consistent earnings surprises in 2024 can be attributed to its strategic initiatives, aggressive acquisition activity, enhanced financial flexibility, portfolio optimization, and favorable industry conditions. These factors combined to enable the company to exceed earnings expectations across multiple quarters.