We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
How Agree Realty's $1.55B 2025 Investments Shape Its 2026 Outlook
Read MoreHide Full Article
Key Takeaways
ADC invested about $1.55B in 2025 across acquisitions, development and DFP.
ADC boosted stability, with 66.8% of ABR from investment-grade tenants as of Dec. 31, 2025.
ADC forecasts $1.25B-$1.5B of 2026 investments, backed by more than $2B of liquidity.
Agree Realty Corporation (ADC - Free Report) reported strong investment activity in 2025, deploying about $1.55 billion into retail net lease properties across 41 states. This volume encompassed acquisitions, development, and Developer Funding Platform (“DFP”) and included 338 properties net leased to top-tier tenants.
A significant benefit of this deployment is the reinforcement of Agree Realty’s investment-grade tenant base, with roughly 66.8% of annualized base rent coming from high-credit tenants as of Dec. 31, 2025, enhancing income stability and long-term cash flow.
During 2025, the company acquired 305 retail net lease properties worth about $1.44 billion at a 7.2% cap rate, with remaining long-lease terms averaging 11.5 years. Around 64.9% of annualized base rents acquired came from investment-grade tenants, helping sustain resilient earnings in a competitive retail environment.
Agree Realty’s balance sheet strength stands out as another strategic advantage. With more than $2 billion in liquidity, including access to revolving credit and forward equity, the REIT is positioned to capitalize on acquisition and development opportunities in 2026.
Agree Realty forecasted 2026 investment activity between $1.25 billion and $1.5 billion, supported by its three growth platforms: acquisitions, development, and the DFP. This disciplined approach reflects the company’s focus on high-quality retail tenants and strategic capital allocation. The strong pipeline and conservative balance sheet provide a solid foundation for continued earnings growth this year.
Wrapping Up on ADC
Agree Realty’s 2025 investment activity and 2026 outlook highlight a disciplined approach focused on high-quality retail properties and a strong, flexible balance sheet. With substantial liquidity and targeted deployment plans, the company is well-positioned to sustain its growth trajectory and deliver stable returns for shareholders. Agree Realty’s disciplined capital management, combined with a high percentage of investment-grade rent rolls, should continue to support its competitive stance in the net lease REIT landscape.
Shares of Agree Realty have risen 1.9% in the past three months against the industry’s decline of 0.9%. Analysts seem bullish on this Zacks Rank #3 (Hold) company. The Zacks Consensus Estimate for its 2025 and 2026 FFO per share has moved marginally northward over the past three months to $4.31 and $4.54, respectively.
The Zacks Consensus Estimate for Tanger’s 2025 FFO per share has been raised marginally over the past two months to $2.28.
The consensus estimate for Phillips Edison & Company’s 2025 FFO per share has been revised upward marginally to $2.59 over the past month.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
How Agree Realty's $1.55B 2025 Investments Shape Its 2026 Outlook
Key Takeaways
Agree Realty Corporation (ADC - Free Report) reported strong investment activity in 2025, deploying about $1.55 billion into retail net lease properties across 41 states. This volume encompassed acquisitions, development, and Developer Funding Platform (“DFP”) and included 338 properties net leased to top-tier tenants.
A significant benefit of this deployment is the reinforcement of Agree Realty’s investment-grade tenant base, with roughly 66.8% of annualized base rent coming from high-credit tenants as of Dec. 31, 2025, enhancing income stability and long-term cash flow.
During 2025, the company acquired 305 retail net lease properties worth about $1.44 billion at a 7.2% cap rate, with remaining long-lease terms averaging 11.5 years. Around 64.9% of annualized base rents acquired came from investment-grade tenants, helping sustain resilient earnings in a competitive retail environment.
Agree Realty’s balance sheet strength stands out as another strategic advantage. With more than $2 billion in liquidity, including access to revolving credit and forward equity, the REIT is positioned to capitalize on acquisition and development opportunities in 2026.
Agree Realty forecasted 2026 investment activity between $1.25 billion and $1.5 billion, supported by its three growth platforms: acquisitions, development, and the DFP. This disciplined approach reflects the company’s focus on high-quality retail tenants and strategic capital allocation. The strong pipeline and conservative balance sheet provide a solid foundation for continued earnings growth this year.
Wrapping Up on ADC
Agree Realty’s 2025 investment activity and 2026 outlook highlight a disciplined approach focused on high-quality retail properties and a strong, flexible balance sheet. With substantial liquidity and targeted deployment plans, the company is well-positioned to sustain its growth trajectory and deliver stable returns for shareholders. Agree Realty’s disciplined capital management, combined with a high percentage of investment-grade rent rolls, should continue to support its competitive stance in the net lease REIT landscape.
Shares of Agree Realty have risen 1.9% in the past three months against the industry’s decline of 0.9%. Analysts seem bullish on this Zacks Rank #3 (Hold) company. The Zacks Consensus Estimate for its 2025 and 2026 FFO per share has moved marginally northward over the past three months to $4.31 and $4.54, respectively.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the retail REIT sector are Tanger Inc. (SKT - Free Report) and Phillips Edison & Company, Inc. (PECO - Free Report) . Both Tanger and Phillips Edison carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Tanger’s 2025 FFO per share has been raised marginally over the past two months to $2.28.
The consensus estimate for Phillips Edison & Company’s 2025 FFO per share has been revised upward marginally to $2.59 over the past month.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.