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Agree Realty Corporation Reports Impressive 2024 Results

Agree Realty Corporation (NYSE: ADC) has recently revealed its financial results for the fourth quarter and full year 2024, showcasing several significant metrics that underline its growth trajectory despite economic uncertainties. This proud moment for the company includes strategic investments and notable operational achievements, crafting a positive outlook for its stakeholders moving into 2025.

Financial Highlights

In the fourth quarter of 2024, Agree Realty invested approximately $371 million in 127 retail net lease properties, demonstrating its robustness in capital allocation and commitment to growth. The performance metrics showed a slight decrease in net income per share attributable to common stockholders, falling 5.7% to $0.41. However, the Core Funds from Operations (Core FFO) per share grew by 3.5% to $1.02, and Adjusted Funds from Operations (AFFO) per share saw an increase of 4.7% to $1.04.

The company declared a monthly dividend of $0.253 per common share in December, enjoying a 2.4% rise year-over-year, reflecting ongoing shareholder commitment.

Full Year Overview

For the full year 2024, Agree Realty witnessed a substantial investment of nearly $951 million across 282 retail properties. This aggressive expansion strategy has resulted in a 4.8% increase in net income per share, amounting to $1.78 compared to $1.70 in 2023. Core FFO per share also increased by 3.7%, hitting $4.08, while AFFO per share rose 4.6% to $4.14.

Further, the company successfully declared total dividends of $3.00 per share with a 2.8% annual rise, signifying its strong cash flow management and intent to return capital to shareholders. Notably, Agree Realty secured an upgraded credit rating of BBB+, enhancing its financial standing amidst competitive market dynamics.

A Robust Balance Sheet

By the end of 2024, Agree Realty had positioned itself favorably with a total liquidity of over $2.0 billion. The company also highlighted a proforma net debt to recurring EBITDA of 3.3 times, illustrating a solid capital structure conducive to growth. This liquidity enables the company to seek and capitalize on lucrative investment opportunities as they arise.

The fourth quarter also included a successful forward equity offering, where Agree Realty raised about $368 million, strengthening its balance sheet further and providing additional flexibility for future endeavors.

Strategic Developments

The company has actively engaged in multiple development projects, with eight new developments initiated in Q4 alone, summing up to around $45 million in committed capital. This represents a proactive approach in enhancing property value and expanding the asset base, reflecting a forward-thinking strategy that leverages market opportunities efficiently.

2025 Guidance

Looking ahead, Agree Realty has set the expectation for 2025, providing initial guidance for AFFO per share between $4.26 and $4.30. The outlook remains optimistic with a focus on disciplined capital allocation and a proactive investment strategy aimed at diverse retail sectors, leveraging its expansive portfolio of 2,370 properties across all 50 states.

Conclusion

These impressive results underscore Agree Realty's capacity to adapt and thrive in a competitive landscape, balancing strategic investments with dynamic operational management. As the company continues to refine its capital strategies and portfolio allocations, its stakeholders can anticipate robust growth and an enhanced dividend outlook in 2025 and beyond. This solid financial footing combined with a progressive growth strategy positions Agree Realty as a compelling player in the retail real estate investment sector.