Agree Realty Raises 2025 AFFO Guidance to $4.29-$4.32, Boosts Investment Outlook to $1.4-$1.6B

Agree Realty reported Q2 AFFO of $1.06, in line with consensus. The company raised $800mln in debt and equity capital, bolstering its balance sheet with $2.3bln in liquidity. Agree Realty increased its 2025 investment guidance to a range of $1.4bln to $1.6bln and raised 2025 AFFO per share guidance to a range of $4.29 to $4.32.

Agree Realty Corporation (NYSE: AGC) reported its second-quarter adjusted funds from operations (AFFO) per share of $1.06, in line with analyst consensus. The company's strategic capital raising efforts resulted in over $800 million in debt and equity capital, bolstering its balance sheet with $2.3 billion in liquidity. This substantial cash position positions Agree Realty to maintain its robust investment strategy and growth trajectory.

The company's 2025 investment guidance was revised upward to a range of $1.4 billion to $1.6 billion, reflecting its confidence in the real estate sector and the potential for new property acquisitions. Additionally, the 2025 AFFO per share guidance was increased to a range of $4.29 to $4.32, underscoring the company's commitment to shareholder value.

Despite a dip in profit last quarter, Agree Realty's operational performance demonstrated resilience. Core funds from operations (Core FFO) per share increased by 1.3% to $1.05, and adjusted funds from operations (AFFO) per share rose by 1.7% to $1.06. These figures indicate the company's ability to navigate challenging market conditions and maintain profitability.

Agree Realty's strategic investments in net lease retail properties totaled $350 million during the quarter, adding 91 new assets to its portfolio. This expansion signals the company's confidence in the long-term value of quality retail tenants, despite higher interest rates and evolving retail trends.

The company's strong balance sheet and active buying spree have earned it a positive outlook from analysts. Most analysts rate the stock a buy, with no sell recommendations, and the median Wall Street price target is 11% above current levels. This bullish sentiment underscores the potential for a sector rebound as market conditions improve.

References:
[1] https://www.tipranks.com/news/the-fly/agree-realty-reports-q2-affo-1-06-consensus-1-06-thefly
[2] https://finimize.com/content/agree-realty-looks-to-expansion-despite-a-dip-in-profits