Agree Realty raises 2026 AFFO guidance as third-quarter net income rises 32%
Core FFO per share rose 4.9% to $1.15, and the company revised its 2026 AFFO per share guidance to $4.58 to $4.59 from $4.57 to $4.59.
Key takeaways
- Agree Realty Corporation (ADC) reported third-quarter 2026 net income attributable to common stockholders of $66.5 million, up 32.3% from $50.3 million a year earlier. Core FFO per share rose 4.9% to $1.15. The company raised its 2026 AFFO per share guidance to $4.58 to $4.59 from $4.57 to $4.59, announced Oct. 20.
Agree Realty Corporation (ADC) raised its 2026 AFFO per share guidance on Tuesday after reporting third-quarter net income that rose 32.3% from a year earlier, the company said in a filing.
Net income attributable to common stockholders was $66.5 million for the quarter ended Sept. 30, compared with $50.3 million for the same period in 2025.
The company is a retail net lease real estate investment trust headquartered in Royal Oak, Michigan. It released its results in a press release and posted an updated investor presentation and supplemental financial information to its website.
Here's how the company did:
- Net income per diluted share: $0.53 vs. $0.45 a year earlier
- Total revenues: $213.9 million vs. $183.2 million a year earlier
- Core FFO per diluted share: $1.15 vs. $1.09 a year earlier
- AFFO per diluted share: $1.15 vs. $1.10 a year earlier
Core funds from operations, or Core FFO, is a non-GAAP measure of REIT operating performance that starts from net income, excludes gains on property sales and adds back real estate depreciation and certain other items. Core FFO rose 17.2% to $143.4 million from $122.4 million.
AFFO, or adjusted funds from operations, goes further by removing certain non-cash items such as straight-line rent and stock-based compensation. AFFO rose 17.2% to $144.2 million from $123.1 million.
For the nine months ended Sept. 30, net income rose 25.7% to $179.5 million from $142.7 million, and Core FFO per share increased 6.8% to $3.40 from $3.18.
“We are very pleased with our performance through the first nine months of the year, as we invested approximately $1.3 billion across all three of our external growth platforms and are raising our 2026 AFFO per share guidance to a range of $4.58 to $4.59,” said President and Chief Executive Officer Joey Agree.
“During the quarter, we completed a $400 million public bond offering at an all-in rate of 5.36%, further strengthening our fortress balance sheet. We will remain disciplined capital allocators, focusing on value over volume and preserving our liquidity to capitalize on shifts in the transaction market, as we have throughout our history,” Agree said.
The company raised the low end of its 2026 AFFO per share guidance and changed several other ranges, as the table shows.
| Guidance item | Prior 2026 guidance | Revised 2026 guidance |
|---|---|---|
| AFFO per share | $4.57 to $4.59 | $4.58 to $4.59 |
| Investment volume | $1.6 billion to $1.8 billion | Approximately $1.6 billion |
| Disposition volume | $50 million to $100 million | $100 million to $150 million |
| Treasury stock method dilution | $0.02 to $0.04 | $0.01 to $0.02 |
Disposition volume guidance rose to $100 million to $150 million from $50 million to $100 million. Investment volume guidance is now approximately $1.6 billion, down from a range of $1.6 billion to $1.8 billion. Guidance for general and administrative expenses, non-reimbursable real estate expenses and income and other tax expense was unchanged.
Third-quarter investment volume was approximately $357.7 million across 94 retail net lease properties, the company said. Acquisitions totaled $308.6 million across 68 properties, at a weighted-average capitalization rate of 7.3% and a weighted-average lease term of about 14.5 years.
In development and developer funding platform projects, the company commenced six projects with anticipated costs of about $57.4 million. It completed seven projects with total costs of about $82.4 million.
The company sold 11 properties for gross proceeds of about $26.9 million at a weighted-average capitalization rate of 6.5%.
The company declared monthly cash dividends of $0.267 per common share for each of July, August and September. That annualizes to $3.204, a 4.3% increase over a year earlier.
After quarter end, the company declared an increased monthly dividend of $0.271 per common share for October. The October dividend annualizes to $3.252, a 3.4% increase over October 2025.
The October dividend is payable Nov. 13 to stockholders of record at the close of business on Oct. 30.
In September, the company completed a $400 million offering of 5.65% senior unsecured notes due 2036. It terminated $300 million of related swap agreements, receiving $19.4 million, which brought the all-in rate to 5.36%.
During the third quarter, the company settled 5.7 million shares under forward sale agreements for net proceeds of $425.7 million.
Liquidity was approximately $2.0 billion at quarter end. That figure includes $1.25 billion of revolving credit facility availability, $657.1 million of outstanding forward equity and $91.5 million of cash.
Net debt to recurring EBITDA, a leverage measure based on earnings before interest, taxes, depreciation and amortization, was 4.8 times at quarter end. On a proforma basis, after deducting the forward equity proceeds, it was 3.9 times.
At Sept. 30, the portfolio comprised 2,888 properties in all 50 states and the District of Columbia, totaling 61.1 million square feet of gross leasable area. It was 99.8% leased, with a weighted-average lease term of about 7.8 years, and 65.1% of annualized base rent came from investment grade tenants.
The company will host a conference call on Wednesday, Oct. 21, at 9:00 AM ET, with a webcast available through its website.
The company was founded in 1971 and has been listed on the New York Stock Exchange since 1994, according to its investor presentation.
“We will remain disciplined capital allocators,” Agree said in the release, pointing to the company’s history of acting on shifts in the transaction market.