Agree Realty Projects Strong Investment Growth Through 2025
Agree Realty Corporation's 2025 Investment Outlook
Agree Realty Corporation announces its substantial investment activity for 2024 and provides a forward-looking investment guidance for 2025. The projected investment volume for 2025 is estimated to be between $1.1 billion and $1.3 billion, marking an impressive anticipated growth from the previous year. This outlook signifies a 26% increase at the midpoint, showcasing the company’s robust positioning in the retail net lease sector.
A Glimpse into 2024 Investment Activity
In 2024, the company recorded an approximate total real estate investment volume of $951 million. This impressive performance included acquisitions, development projects, and initiatives under the Developer Funding Platform (DFP). The company effectively net leased 282 properties to leading tenants across diverse retail sectors in 45 states.
Details of 2024 Acquisitions
During the twelve-month period leading to the end of 2024, Agree Realty acquired a total of 242 retail net lease properties. This acquisition resulted in an approximate total volume of $867 million, with a favorable weighted-average capitalization rate of 7.5% and an impressive remaining lease duration averaging 10.4 years. Equally notable is that around 65.6% of the annualized base rents during this period were sourced from investment-grade retail tenants.
CEO Insights on Company Strategy
Joey Agree, the President and CEO, emphasized the importance of strategic patience and disciplined execution over the past year. He stated, "Our proactive approach has strengthened our balance sheet, leading to total liquidity of over $2 billion and the successful raising of around $1.1 billion in forward equity. This solid foundation equips us to navigate various economic conditions effectively," reflecting a confident outlook for continuing growth.
Capital Markets Activity Overview
Agree Realty made significant headway in capital markets, having completed a follow-on public offering that raised about $368 million after expenses in October 2024. Furthermore, the company engaged in forward sale agreements, projecting additional proceeds from its at-the-market equity program that could bring in around $55 million in the fourth quarter. All these strategies highlight the company’s robust financial maneuvering.
Strategic Plans for 2025
The company’s anticipated investment volume for 2025 further details its strategies in capital deployment across acquisitions, developments, and DFP projects. It is well-positioned to maintain its competitive edge in the market. Such ambitious projections are rooted in positive past performance and a solid portfolio that consists of investment-grade tenants, which accounted for 68.2% of annualized base rents as of 2024.
About Agree Realty Corporation
Agree Realty Corporation, identified under the ticker ADC, operates as a uniquely positioned real estate investment trust focusing on retail properties. They own and manage approximately 2,370 properties across all 50 states, encompassing around 48.8 million square feet of gross leasable area. The company aims to transform the retail landscape through strategic acquisitions and developments, reinforcing its commitment to high-quality retail experiences.
Frequently Asked Questions
What is the expected investment volume for 2025?
The investment volume is projected to be between $1.1 billion and $1.3 billion, indicating a strong growth expectation.
How many properties did Agree Realty acquire in 2024?
Agree Realty acquired 242 retail net lease properties with a total acquisition volume of approximately $867 million.
What percentage of annualized base rents come from investment-grade tenants?
About 68.2% of annualized base rents are derived from investment-grade retail tenants as of 2024.
What is the weighted-average capitalization rate for acquisitions?
The weighted-average capitalization rate for acquisitions in 2024 was approximately 7.5%.
How does Agree Realty position itself in the retail sector?
Agree Realty focuses on creating a diverse portfolio with strong investment grade tenants and strategic asset management to enhance retail experiences.
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