Agree Realty (ADC) investor relations material

Executive summary

• Portfolio expanded to 2,756 properties totaling 57.5 million sq. ft. across all 50 states, 99.7% leased as of March 31, 2026, with 261 ground leases and a weighted-average lease term of 7.8 years.

• Net income for Q1 2026 rose 32% year-over-year to $62.2 million, with diluted EPS up 19.1% to $0.50, driven by portfolio growth.

• Nearly $425 million invested in 100 properties, including $403–$404.3 million in acquisitions and 15 development/DFP projects with $112 million in anticipated costs.

• Raised $658–$660 million via ATM forward equity, ending the quarter with $2.3 billion in liquidity and $1.4 billion in outstanding forward equity.

• Maintains investment grade issuer ratings and a conservative, flexible capital structure, with no material debt maturities until 2028.

Financial highlights

• Core FFO per share was $1.13 (up 8.1% year-over-year); AFFO per share was $1.14 (up 7.9%), with AFFO reaching $137.6 million, up 20.7% year-over-year.

• Rental income for Q1 2026 was $200.7 million, up 19% year-over-year.

• Monthly dividend of $0.262 per share declared for Q1, annualized at $3.14, with an increase to $0.267 per share for April, annualized at $3.20, up 4.3% year-over-year.

• Payout ratio at 69–70% of AFFO per share; over $140 million in free cash flow after dividends expected for the year.

• Fixed charge coverage ratio at 4.2x; net debt to enterprise value at 28.5%.

Outlook and guidance

• 2026 AFFO per share guidance maintained at $4.54–$4.58, implying 5.4% year-over-year growth at midpoint.

• Investment volume guidance for 2026 is $1.4–$1.6 billion, about 10% above initial guidance.

• Treasury stock method dilution expected to impact AFFO per share by $0.02–$0.04.

• Guidance assumes 25–50 basis points of credit and occupancy loss for the year, with 14 basis points realized in Q1.

• Development and DFP activity expected to ramp in Q2 and Q3, targeting $250 million in annual commencements.