AGREE REALTY CORP 8-K

PositiveEarningsGuidance raised

Cuts FY2026 investment plans to ≈$1.6B and raises property-sale targets; lifts AFFO/share guidance to $4.58–$4.59.

Filed 2026-10-20 16:05 ET

Summary

Q3 2026 results with revised FY2026 guidance. Agree Realty reported higher revenue, net income attributable to common stockholders and per-share funds from operations year over year, and raised its AFFO-per-share outlook. It also reduced expected investment volume to approximately $1.6B and raised disposition guidance to $100M–$150M.

Key Figures

Metric Q3 2026 9M 2026
Revenue $213.9M, +16.7% Y/Y $619.8M, +17.4% Y/Y
Operating income $109.6M, +25.6% Y/Y $303.4M, +22.4% Y/Y
Net income attributable to common stockholders $66.5M, +32.3% Y/Y $179.5M, +25.7% Y/Y
Diluted EPS $0.53, +18.5% Y/Y $1.47, +13.4% Y/Y
Core FFO per share, non-GAAP $1.15, +4.9% Y/Y $3.40, +6.8% Y/Y
AFFO per share, non-GAAP $1.15, +4.9% Y/Y $3.43, +6.7% Y/Y
Operating cash flow — $460.7M, +17.3% Y/Y
  • Investment activity totaled $357.7M across 94 properties in Q3; acquisitions were $308.6M at a 7.3% weighted-average capitalization rate, with a 14.5-year weighted-average lease term. The portfolio was 99.8% leased at quarter-end.
  • Liquidity was approximately $2.0B, including $1.25B of revolving-credit availability, $657.1M of outstanding forward equity and $91.5M of cash and cash equivalents and cash held in escrow. Net debt was $3.66B; net debt to recurring EBITDA was 4.8x, or 3.9x pro forma for the forward equity.
  • Issued $400M principal amount of senior unsecured notes due 2036, with a 5.65% coupon and 5.36% all-in rate after hedging. Settled 5.7M forward-sale shares for $425.7M net proceeds. The October common dividend was $0.271 per share monthly, up 3.4% Y/Y.

Guidance

Metric Period Guidance Prior Direction
AFFO per share, non-GAAP FY2026 $4.58–$4.59; nearly 6% Y/Y growth at midpoint $4.57–$4.59 Raised
Investment volume FY2026 ≈$1.6B $1.6B–$1.8B Lowered
Disposition volume FY2026 $100M–$150M $50M–$100M Raised
General and administrative expenses (% of adjusted revenue) FY2026 5.3%–5.6% 5.3%–5.6% Reaffirmed
Cash general and administrative expenses (% of adjusted revenue) FY2026 3.7%–4.0% — —
Non-reimbursable real estate expenses (% of adjusted revenue) FY2026 1.0%–1.5% 1.0%–1.5% Reaffirmed
Income and other tax expense FY2026 ≈$2M ≈$2M Reaffirmed
Treasury stock method dilution FY2026 $0.01–$0.02 per share $0.02–$0.04 per share Lowered
Guidance changes, derived from earlier filings
MetricPeriodEarlier guidanceGuidance nowChange
AFFO per share, non-GAAPFY2026$4.57-$4.59$4.58–$4.59; nearly 6% Y/Y growth at midpointnarrowed (raised low end)
Investment volumeFY2026$1.6B-$1.8B≈$1.6Bnarrowed (lowered high end)
Disposition volumeFY2026$50M-$100M$100M–$150Mraised
General and administrative expenses (% of adjusted revenue)FY20265.3%-5.6%5.3%–5.6%reaffirmed
Cash general and administrative expenses (% of adjusted revenue)FY20263.7%-4.0%3.7%–4.0%reaffirmed
Non-reimbursable real estate expenses (% of adjusted revenue)FY20261.0%-1.5%1.0%–1.5%reaffirmed
Income and other tax expenseFY2026≈$2M≈$2Mreaffirmed
Treasury stock method dilutionFY2026$0.02-$0.04$0.01–$0.02 per sharelowered

Investor Takeaways

  • Watch results against the revised FY2026 AFFO-per-share and investment and disposition outlooks.
  • Track delivery of the 2027 development and Developer Funding Platform projects; 13 projects are scheduled for delivery in Q1–Q3 2027.

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