Agree Realty Corporation Files 2023 Annual Report on Form 10-K

TL;DR

<b>Agree Realty Corporation filed its 2023 annual report (10-K) detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

AGREE REALTY CORP (ADC-PA) filed a Annual Report (10-K) with the SEC on February 13, 2024. Agree Realty Corporation filed its 2023 Form 10-K on February 13, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business is Real Estate Investment Trusts (SIC code 6798). Agree Realty Corporation is incorporated in Delaware. The company's business address is 32301 Woodward Avenue, Royal Oak, MI 48073.

Why It Matters

For investors and stakeholders tracking AGREE REALTY CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Agree Realty's financial health, operational strategies, and risk factors for investors and stakeholders. As a Real Estate Investment Trust (REIT), the company's performance is closely tied to the real estate market, making this filing crucial for understanding its current standing and future outlook.

Risk Assessment

Risk Level: low — AGREE REALTY CORP shows low risk based on this filing. The filing is a standard annual report (10-K) for a publicly traded company, indicating routine disclosure rather than immediate significant events.

Analyst Insight

Review the full 10-K filing for detailed financial statements, management discussion and analysis, and risk factors to assess Agree Realty's performance and strategic direction.

Key Numbers

• 20231231 — FISCAL YEAR END (CONFORMED PERIOD OF REPORT)
• 20240213 — FILED AS OF DATE (DATE AS OF CHANGE)
• 95 — PUBLIC DOCUMENT COUNT (CONFORMED SUBMISSION TYPE)
• 001-12928 — SEC FILE NUMBER (FILING VALUES)

Key Players & Entities

• AGREE REALTY CORP (company) — FILER
• 0000917251 (company) — CENTRAL INDEX KEY
• 6798 (company) — STANDARD INDUSTRIAL CLASSIFICATION
• 383148187 (company) — IRS NUMBER
• DE (company) — STATE OF INCORPORATION
• 32301 WOODWARD AVENUE (company) — BUSINESS ADDRESS STREET 1
• ROYAL OAK (company) — BUSINESS ADDRESS CITY
• MI (company) — BUSINESS ADDRESS STATE

Forward-Looking Statements

• Agree Realty Corp. will continue to expand its real estate portfolio, likely through further capital raises, given the historical increase in common shares outstanding. (AGREE REALTY CORP) — medium confidence, target: 2025-12-31

FAQ

Industry Context

Agree Realty Corporation operates as a Real Estate Investment Trust (REIT), focusing on owning and operating net lease commercial retail properties.

Regulatory Implications

The company is subject to SEC regulations governing public company filings, including the requirement to submit annual reports on Form 10-K.

What Investors Should Do

1. Analyze the financial statements within the 10-K for revenue, net income, and asset growth.
2. Review the Management's Discussion and Analysis (MD&A) section for insights into operational performance and strategic initiatives.
3. Examine the Risk Factors section to understand potential challenges and threats to the company's business.

Key Dates

• 2024-02-13: Filing Date — Submission of the 2023 Form 10-K
• 2023-12-31: Fiscal Year End — Period covered by the 10-K report

Year-Over-Year Comparison

This is the initial filing analyzed, so no comparison to a previous filing is available.

Key Financial Figures

• $0.0001 — Cumulative Redeemable Preferred Stock, $0.0001 par value ADCPrA New York Stock Exc
• $65.39 — 30, 2023, based on the closing price of $65.39 on the New York Stock Exchange on that
• $1.28 billion — 23, the Company completed approximately $1.28 billion of investments in net leased retail rea
• $1.19 b — gregate purchase price of approximately $1.19 billion, and the completed development of
• $86.2 million — for an aggregate cost of approximately $86.2 million. These 303 properties are net leased to
• $13.8 million — rs office building, for net proceeds of $13.8 million. Leasing During 2023, excluding prope
• $15.8 million — extensions or options is approximately $15.8 million. Dividends The Company increased its
• $0.24 — monthly dividend per common share from $0.24 to $0.243 in April 2023 and further inc
• $0.243 — dividend per common share from $0.24 to $0.243 in April 2023 and further increased the
• $0.247 — he monthly dividend per common share to $0.247 in October 2023. The December 2023 div
• $2.964 — 47 represents an annualized dividend of $2.964 per share and an annualized dividend yi
• $62.95 — our common stock listed on the NYSE of $62.95 on December 29, 2023. The Company has
• $750 million — tember 2022, the Company entered into a $750 million at-the-market ("ATM") program (the "202
• $669.1 m — for anticipated future net proceeds of $669.1 million, after deducting fees and expense
• $433.4 m — 2023 for net proceeds of approximately $433.4 million, after deducting fees and expense

Filing Documents

• adc-20231231x10k.htm (10-K) — 30831KB
• adc-20231231xex10d8.htm (EX-10.8) — 19KB
• adc-20231231xex19d1.htm (EX-19.1) — 97KB
• adc-20231231xex21.htm (EX-21) — 55KB
• adc-20231231xex22.htm (EX-22) — 38KB
• adc-20231231xex23d1.htm (EX-23.1) — 3KB
• adc-20231231xex31d1.htm (EX-31.1) — 10KB
• adc-20231231xex31d2.htm (EX-31.2) — 10KB
• adc-20231231xex32d1.htm (EX-32.1) — 5KB
• adc-20231231xex32d2.htm (EX-32.2) — 5KB
• adc-20231231xex97d1.htm (EX-97.1) — 39KB
• 0001558370-24-001056.txt (&nbsp;) — 106239KB
• adc-20231231.xsd (EX-101.SCH) — 478KB
• adc-20231231_cal.xml (EX-101.CAL) — 95KB
• adc-20231231_def.xml (EX-101.DEF) — 1138KB
• adc-20231231_lab.xml (EX-101.LAB) — 1935KB
• adc-20231231_pre.xml (EX-101.PRE) — 1496KB
• adc-20231231x10k_htm.xml (XML) — 32727KB

Business

Business 2 Item 1A :

Risk Factors

Risk Factors 9 Item 1B : Unresolved Staff Comments 22 Item 1C: Cybersecurity 22 Item 2 :

Properties

Properties 24 Item 3 :

Legal Proceedings

Legal Proceedings 28 Item 4 : Mine Safety Disclosures 28 PART II Item 5 : Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 28 Item 6 : [Reserved] 29 Item 7 :

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 29 Item 7A :

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 41 Item 8 :

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 42 Item 9 : Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 42 Item 9A :

Controls and Procedures

Controls and Procedures 42 Item 9B : Other Information 43 Item 9C : Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 43 PART III Item 10: Directors, Executive Officers and Corporate Governance 44 Item 11:

Executive Compensation

Executive Compensation 44 Item 12:

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 44 Item 13: Certain Relationships and Related Transactions, and Director Independence 44 Item 14: Principal Accountant Fees and Services 44 PART IV Item 15: Exhibits and Financial Statement Schedules 45 Consolidated Financial Statements and Notes F-1 Item 16: Form 10-K Summary 50

SIGNATURES

SIGNATURES Table of Contents PART I Cautionary Note Regarding Forward-Looking Statements This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe the Company's future plans, strategies and expectations, are generally identifiable by use of the words "anticipate," "estimate," "should," "expect," "believe," "intend," "may," "will," "seek," "could," "project" or similar expressions. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the Company's control and which could materially affect the Company's results of operations, financial condition, cash flows, performance or future achievements or events. Currently, one of the most significant factors, however, is the adverse effect of macroeconomic conditions, including inflation and the potential impacts of pandemics, epidemics or other public health emergencies or fear of such events on the financial condition, results of operations, cash flows and performance of the Company and its tenants, the real estate market and the global economy and financial markets. The extent to which macroeconomic trends may impact the Company and its tenants will depend on future developments, which are highly uncertain and cannot be predicted with confidence. Moreover, you should interpret many of the risks identified in this report, as well as the risks set forth below, as being heightened as a

: Business

Item 1: Business General The Company is a fully integrated REIT primarily focused on the ownership, acquisition, development and management of retail properties net leased to industry leading tenants. The Company was founded in 1971 by its current Executive Chairman, Richard Agree, and its common stock was listed on the New York Stock Exchange ("NYSE") in 1994. The Company's assets are held by, and all of its operations are conducted through, directly or indirectly, the Operating Partnership of which the Company is the sole general partner and in which it held a 99.7% common interest as of December 31, 2023. Under the agreement of limited partnership of the Operating Partnership, the Company, as the sole general partner, has exclusive responsibility and discretion in the management and control of the Operating Partnership. As of December 31, 2023, the Company's portfolio consisted of 2,135 properties located in 49 states and totaling approximately 44.2 million square feet of Gross Leasable Area ("GLA"). The portfolio was approximately 99.8% leased and had a weighted average remaining lease term of approximately 8.4 years. A significant majority of the Company's properties are leased to national tenants and approximately 69.1% of our annualized base rent was derived from tenants, or parent entities thereof, with an investment grade credit rating from S&P Global Ratings, Moody's Investors Service, Fitch Ratings or the National Association of Insurance Commissioners. Substantially all of our tenants are subject to net lease agreements. A net lease typically requires the tenant to be responsible for minimum monthly rent and property operating expenses including property taxes, insurance and maintenance. As of December 31, 2023, the Company had 72 full-time employees, covering acquisitions, development, legal, asset management, accounting, finance, administrative and executive functions. The Company was incorporated in December 1993 under the laws of the State of

View Full Filing

View this 10-K filing on SEC EDGAR