Agree Realty Corporation Initiates Significant Stock Offering to Enhance Growth Strategy

Agree Realty Corporation's Public Stock Offering

In a significant move towards enhancing its corporate growth strategies, Agree Realty Corporation (NYSE: ADC) has announced an underwritten public offering of 4,500,000 shares of its common stock. This decision comes as part of a forward sale agreement designed to bolster the company’s financial footing, enabling it to pursue various business opportunities without immediate capital inflow.

The offering, made public on April 23, 2025, is anticipated to include a provision allowing the underwriter, BofA Securities, to purchase an additional 675,000 shares within a 30-day period. Such arrangements provide Agree Realty with the flexibility to align its offerings and sales with market conditions while securing potential funding for future initiatives.

As per the plans announced, the company expects to finalize a forward sale agreement with Bank of America, N.A. The structure of this agreement will see the forward purchaser or its affiliates facilitating the sale of the 4,500,000 shares to the underwriter. This arrangement allows the company to estimate proceeds while effectively managing share issuance timings. Notably, depending on the underwriter's actions regarding the additional shares, total offerings could rise to 5,175,000 shares.

Upon execution of the forward sale agreement, the shares will be delivered in accordance with a previously defined schedule. However, it is essential to note that the company will not receive proceeds from the initial sales made by the forward purchaser. Instead, proceeds will materialize once the forward sale agreement is settled, which the company expects will fund general corporate purposes, including property acquisitions and the repayment of existing debt obligations.

Navigating through the complexities of the current economic landscape, Agree Realty positions itself strategically by enabling pricing through the public offering while delaying the eventual receipt of cash proceeds. This approach not only strengthens liquidity but also fortifies its ongoing capabilities in acquiring new properties or developing existing assets, emphasizing their commitment to RETHINKING RETAIL.

Agree Realty stands out as a publicly traded real estate investment trust (REIT) specializing in acquisitions and developments that cater to prominent omni-channel retail tenants. As of late March 2025, the company boasts a robust portfolio that encompasses 2,422 properties across all 50 states, amassing approximately 50.3 million square feet of leaseable area.

This latest announcement underlines the company's sustained efforts to adapt and evolve, staying ahead of market trends and demands. With the ongoing uncertainties in global economies, Agree Realty’s proactive measures might prove to be beneficial in the long run. The careful planning regarding their stock offerings should also reassure investors about their rigorous approach to capital management and operational strategy.

The public offering is being conducted under an effective shelf registration statement filed with the Securities and Exchange Commission (SEC), ensuring compliance with regulatory obligations. Interested parties seeking more information can access the prospectus supplement related to this offering through BofA Securities, either via mail or email communications.

In conclusion, Agree Realty Corporation continues to display a robust vision for its future growth, leveraging financial strategies to adapt to market conditions effectively. For shareholders and potential investors, the outcomes of this offering will be closely watched, particularly regarding the company’s financial health and growth trajectory in the months to come.