#United States #Common Stock #Public Offering #Agree Realty #Royal Oak

Agree Realty Completes Public Offering

Agree Realty Corporation, a publicly traded real estate investment trust (REIT), has recently completed a significant public offering, successfully issuing a total of 5,175,000 shares of its common stock. This milestone reflects the company's commitment to enhancing its financial standing and operational capacity in the retail real estate sector. The offering saw the full exercise of underwriters' options, marking a positive indication of investor confidence in the company's growth prospects.

Details of the Offering

The offering was managed by BofA Securities, which served as the sole book-running manager. Co-managers included prominent firms such as Raymond James, Stifel, BTIG, Regions Securities LLC, and SMBC Nikko. By entering into a forward sale agreement with Bank of America, N.A., the company coordinated the sale of shares to the underwriters, facilitating an efficient process for investors.

For the fiscal transaction, the public offering price was set at $75.70 per share. However, the proceeds from the sale will be received by the company upon the physical settlement of the forward sale agreement, expected no later than October 26, 2026. This strategic approach allows the firm to manage pricing effectively while postponing issuance until required funds are secured for future investments.

Strategic Use of Proceeds

Although the company has not directly received any proceeds from this stock offering at this point, it anticipates using the eventual funds for a mix of purposes. These include supporting property acquisitions, developing new projects, and repaying outstanding debts. Such strategies are vital as the company continues to expand its portfolio, which, as of March 31, 2025, includes ownership of 2,422 properties across all 50 states, totaling approximately 50.3 million square feet of gross leasable area.

Market Position and Future Outlook

As a REIT focused on enhancing the retail landscape, Agree Realty is dedicated to acquiring and developing properties that are net leased to high-profile and omni-channel retailers. The public offering aligns with the company's broader mission of 'rethinking retail' as the market evolves and consumer preferences shift. By solidifying its financial base, Agree Realty aims to continue delivering value to its shareholders and enhancing its market presence in the commercial real estate sector.

The terms of this offering are stipulated under an effective shelf registration statement filed with the Securities and Exchange Commission (SEC), ensuring compliance with necessary securities regulations. Non-compliance can lead to significant risks, which the company is fully aware of, particularly in light of current economic conditions influencing real estate markets worldwide.

As investments in commercial real estate remain subject to economic fluctuations, Agree Realty acknowledges the potential impacts of uncertainties on its operations and tenant performance. The firm emphasizes its resilience and capacity to navigate these conditions while maintaining its commitment to shareholder value.

Conclusion

The successful completion of this public offering is a pivotal chapter for Agree Realty Corporation as it seeks to leverage its position within the retail sector. Moving forward, the company is well-positioned to capitalize on its strategic initiatives, ensuring sustainable growth and income for its investors in the years to come. Overall, this move not only strengthens its operational framework but also sets a foundation for continued expansion in a competitive market.