Agree Realty Corporation Launches $625 Million Commercial Paper Program to Boost Financial Flexibility
On March 31, 2025, Agree Realty Corporation (NYSE: ADC) announced the establishment of its first-ever commercial paper program, allowing the issuance of up to $625 million in short-term, unsecured commercial paper notes. This initiative is expected to provide the company with an additional avenue for raising short-term capital and enhancing its balance sheet. The program will be executed through its subsidiary, Agree Limited Partnership, and the notes issued will rank equally with other senior unsecured debts of the issuer. The notes will be fully guaranteed by Agree Realty Corporation and certain subsidiaries. The proceeds from the commercial paper sales will be directed towards general corporate purposes.
One of the key benefits of this new commercial paper program is the potential cost savings when compared to Agree Realty’s existing $1.25 billion revolving credit facility. By utilizing the commercial paper market, the company aims to diversify its financial strategies and strengthen its capital sources, thus enhancing its liquidity position. The revolving credit facility is expected to act as a safety net for the repayment of notes issued under this new program, supporting the company’s financial maneuverability in uncertain economic climates.
Despite the advantages, it is worth noting that the notes and guarantees associated with this program have not been registered under the Securities Act of 1933. Consequently, they cannot be offered or sold in the United States without appropriate registration or an exemption from registration requirements. This ensures compliance with regulatory frameworks while allowing the company to access crucial short-term funding. In light of these developments, the company assures that this press release does not constitute an offer for sale or solicit an offer to purchase the notes.
Agree Realty Corporation is recognized for its strategic focus on retail real estate investment through net leasing to top-tier, omnichannel retail tenants. As of the end of 2024, the company asserted ownership of a diverse portfolio that includes 2,370 properties across all 50 states, covering approximately 48.8 million square feet of gross leasable area. Its stock is publicly traded on the New York Stock Exchange under the ticker symbol 'ADC'.
The announcement of this program aligns with Agree Realty’s commitment to boosting its operational capacity while navigating the evolving landscape of retail real estate. The company remains attuned to macroeconomic trends affecting credit availability, interest rates, and overall market performance, all of which are vital to its ongoing success.
As the enterprise progresses, it underscores the importance of foresight in financial planning, particularly during unpredictable economic conditions. With the commercial paper program in place, Agree Realty Corporation is well-positioned to adapt swiftly to market changes, ensuring resilience in its operations and continued growth in its investment endeavors.
The company’s management emphasizes the significance of maintaining open lines of communication with investors and stakeholders regarding its financial strategies and performance. In light of the ongoing economic uncertainties, stakeholders are encouraged to stay informed about the company’s progress and strategic decisions, as these may have significant implications for its future trajectory.
In this endeavor, Agree Realty Corporation exemplifies a forward-thinking approach, strategically positioning itself to navigate financial markets and capitalizing on opportunities that arise, thereby reinforcing its standing in the competitive realm of real estate investment.
One of the key benefits of this new commercial paper program is the potential cost savings when compared to Agree Realty’s existing $1.25 billion revolving credit facility. By utilizing the commercial paper market, the company aims to diversify its financial strategies and strengthen its capital sources, thus enhancing its liquidity position. The revolving credit facility is expected to act as a safety net for the repayment of notes issued under this new program, supporting the company’s financial maneuverability in uncertain economic climates.
Despite the advantages, it is worth noting that the notes and guarantees associated with this program have not been registered under the Securities Act of 1933. Consequently, they cannot be offered or sold in the United States without appropriate registration or an exemption from registration requirements. This ensures compliance with regulatory frameworks while allowing the company to access crucial short-term funding. In light of these developments, the company assures that this press release does not constitute an offer for sale or solicit an offer to purchase the notes.
Agree Realty Corporation is recognized for its strategic focus on retail real estate investment through net leasing to top-tier, omnichannel retail tenants. As of the end of 2024, the company asserted ownership of a diverse portfolio that includes 2,370 properties across all 50 states, covering approximately 48.8 million square feet of gross leasable area. Its stock is publicly traded on the New York Stock Exchange under the ticker symbol 'ADC'.
The announcement of this program aligns with Agree Realty’s commitment to boosting its operational capacity while navigating the evolving landscape of retail real estate. The company remains attuned to macroeconomic trends affecting credit availability, interest rates, and overall market performance, all of which are vital to its ongoing success.
As the enterprise progresses, it underscores the importance of foresight in financial planning, particularly during unpredictable economic conditions. With the commercial paper program in place, Agree Realty Corporation is well-positioned to adapt swiftly to market changes, ensuring resilience in its operations and continued growth in its investment endeavors.
The company’s management emphasizes the significance of maintaining open lines of communication with investors and stakeholders regarding its financial strategies and performance. In light of the ongoing economic uncertainties, stakeholders are encouraged to stay informed about the company’s progress and strategic decisions, as these may have significant implications for its future trajectory.
In this endeavor, Agree Realty Corporation exemplifies a forward-thinking approach, strategically positioning itself to navigate financial markets and capitalizing on opportunities that arise, thereby reinforcing its standing in the competitive realm of real estate investment.
Topics Financial Services & Investing）
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