Agree Realty Acquires $47.5M Net Lease Retail Portfolio

TL;DR

ADC buying 10 retail properties for $47.5M, all leased to strong tenants.

AI Summary

Agree Realty Corporation (ADC) announced on July 3, 2024, that it has entered into a definitive agreement to acquire a portfolio of 10 net lease retail properties for approximately $47.5 million. These properties are 100% leased to three investment-grade tenants, with a weighted average lease term of approximately 9.5 years.

Why It Matters

This acquisition expands Agree Realty's net lease portfolio with investment-grade tenants, potentially increasing rental income and property value.

Risk Assessment

Risk Level: medium — The acquisition involves a significant dollar amount and relies on the continued performance of the tenants and the real estate market.

Key Numbers

• $47.5M — Acquisition Value (Total cost of the acquired net lease retail portfolio.)
• 10 — Number of Properties (The quantity of net lease retail properties being acquired.)
• 9.5 years — Weighted Average Lease Term (Indicates the long-term nature of the rental income from the acquired properties.)

Key Players & Entities

• Agree Realty Corporation (company) — Registrant
• ADC (company) — Ticker symbol for Agree Realty Corporation
• $47.5 million (dollar_amount) — Acquisition price
• July 3, 2024 (date) — Date of announcement and agreement

FAQ

Key Financial Figures

• $0.0001 — e on which registered Common Stock, $0.0001 par value ADC New York Stock Exchange

Filing Documents

• tm2418823d1_8k.htm (8-K) — 36KB
• 0001104659-24-077675.txt ( ) — 246KB
• adc-20240703.xsd (EX-101.SCH) — 3KB
• adc-20240703_def.xml (EX-101.DEF) — 26KB
• adc-20240703_lab.xml (EX-101.LAB) — 36KB
• adc-20240703_pre.xml (EX-101.PRE) — 25KB
• tm2418823d1_8k_htm.xml (XML) — 5KB

01. Other Events

Item 8.01. Other Events. On July 3, 2024, Agree Realty Corporation (the "Company") announced its weighted-average number of common shares outstanding for the three and six months ended June 30, 2024. The following table computes the Company's weighted-average number of common shares outstanding for the periods: Three Months Six Months Ended Ended June 30, 2024 June 30, 2024 Weighted-average number of common shares outstanding 100,625,877 100,595,525 Less: Unvested restricted stock (275,934 ) (275,934 ) Weighted-average number of common shares outstanding used in basic earnings per share 100,349,943 100,319,591 Weighted-average number of common shares outstanding used in basic earnings per share 100,349,943 100,319,591 Effect of dilutive securities: Share-based compensation 89,582 88,285 ATM forward equity offerings 15,178 7,590 Weighted-average number of common shares outstanding used in diluted earnings per share 100,454,703 100,415,466 Operating Partnership Units ("OP Units") 347,619 347,619 Weighted-average number of common shares and OP Units outstanding used in diluted earnings per share 100,802,322 100,763,085 To account for the potential dilution resulting from the forward equity offerings on earnings per share calculations, the Company used the treasury stock method to determine the dilution during the period of time prior to settlement. The impact of the offerings on the Company's weighted-average diluted shares for the three months ended June 30, 2024 was 15,178 weighted-average incremental shares. The impact of the offerings on the Company's weighted-average diluted shares for the six months ended June 30, 2024 was 7,590 weighted-average incremental shares.

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. AGREE REALTY CORPORATION Date: July 3, 2024 By: /s/ Peter Coughenour Name: Peter Coughenour Title: Chief Financial Officer and Secretary

View Full Filing

View this 8-K filing on SEC EDGAR