Agree Realty Corporation's 2024 Results & 2025 Guidance Overview

Agree Realty Corporation's 2024 Results Summary

In its recent announcement, Agree Realty Corporation (NYSE: ADC) shared important financial results for 2024, revealing a resilience in its portfolio amid a fluctuating economic landscape. The company demonstrated its ability to navigate challenges and maximize shareholder value through strategic investments and operational excellence.

Quarterly Highlights

During the fourth quarter of the year, Agree Realty showcased impressive metrics:

• Invested around $371 million across 127 retail net lease properties.
• Initiated eight new development projects totaling approximately $45 million in capital.
• Net income per share for the quarter was $0.41, showing a decrease of 5.7% compared to the same quarter last year.
• Core funds from operations (Core FFO) rose by 3.5%, reaching $1.02 per share.
• Adjusted funds from operations (AFFO) per share experienced a growth of 4.7%, reflecting at $1.04.
• The December monthly dividend declared was $0.253, marking a 2.4% year-over-year increase.
• Raised approximately $368 million through a forward equity offering of 5.1 million shares.
• Achieved a stable balance sheet with a pro forma net debt to recurring EBITDA ratio of 3.3 times.

Full Year Financial Performance

Agree Realty's full-year figures for 2024 also reflect its commitment to growth:

• The company invested about $951 million into a portfolio of 282 properties, an increase in investment activity.
• The annual net income per share grew by 4.8% to $1.78.
• Annual Core FFO reached $4.08 per share, up by 3.7% compared to 2023.
• AFFO per share rose by 4.6% to $4.14.
• Overall, total dividends declared for the year amounted to $3.00 per share, reflecting a solid 2.8% increase year-over-year.

Strategic Initiatives and Future Outlook

Looking ahead, Agree Realty Corporation set its AFFO guidance for 2025 between $4.26 and $4.30 per share. This guidance underscores the company’s strategic focus on expanding its portfolio while maintaining strong financial performance through disciplined capital allocation and proactive market engagement.

Operational Strength and Portfolio Update

As of the end of the year, the company’s portfolio consisted of 2,370 properties, showcasing leadership in the retail real estate sector. The total gross leasable area expanded to approximately 48.8 million square feet with an impressive 99.6% leased rate. These figures emphasize Agree Realty's commitment to high-quality, investment-grade tenants, contributing significantly to its steady revenue stream.

Investor Relations and Conference Call

Investors are encouraged to participate in the upcoming conference call scheduled for February 12, where company leadership will provide additional insights on the fiscal results and future trajectory. Potential participants can dial in approximately 10 minutes before the start time, ensuring they don't miss out on key discussions affecting shareholder interests.

Frequently Asked Questions

1. What are the key financial highlights of Agree Realty for 2024?

In 2024, Agree Realty reported a net income per share of $1.78, Core FFO of $4.08, and AFFO of $4.14. The company also increased its total dividends to $3.00 per share.

2. What is the AFFO guidance for 2025?

The company projects its AFFO per share will range between $4.26 and $4.30 for 2025, reflecting ongoing commitment to growth.

3. How many properties does Agree Realty operate?

As of December 31, 2024, Agree Realty's portfolio included 2,370 properties across all 50 states, with a total gross leasable area of about 48.8 million square feet.

4. How are dividends impacted by the company's performance?

Dividends are influenced by the company's overall financial performance, which includes the growth in Core FFO and AFFO, enhancing shareholder value through steady returns.

5. When is the next investor conference call?

The next investor conference call will be held on February 12, where the management will discuss the company’s annual performance and strategic outlook.

About The Author

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