Agree Realty Revises Full-Year Guidance Up on Growing Acquisition Portfolio (NYSE:ADC)

I agree Real Estate (NYSE:ADC) raised its 2024 guidance for acquisitions and adjusted FFO after Q2 earnings came in slightly ahead of consensus estimates. Q2 revenue came in slightly ahead of consensus estimates.

Retail REIT raises capital for 2024 Adjusted FFO per share guidance is $4.11-$4.14, from the previous guidance of $4.10-$4.13. General and administrative expenses are expected to be 5.7%-6.0% of adjusted revenue.

“Our growing portfolio across all three of our external growth platforms gives us the confidence to increase our full-year acquisition guidance to approximately $700 million,” said President and CEO Joey Agree.

Acquisition volume is now expected to be ~$700 million, up from previous guidance of ~$600 million. Sales volume has been adjusted to $60-100 million from $50-100 million.

After the end of the quarter, Agree (ADC) received commitments to increase its credit facility from $1.0 billion to $1.25 billion. The facility includes an accordion option that allows it to request additional commitments from lenders up to a total of $2.0 billion.

Adjusted FFO per share in Q2 was $1.04, beating the Visible Alpha consensus of $1.03, up from $1.03 in Q1 to $0.98 in Q2 2024.

Agree Realty (ADC) Shares increased by 1.5% on Tuesday after trading hours.

Revenue was $152.6 million, compared to the consensus of $151.2 million, up from $149.5 million in the prior-year quarter and $129.9 million in the same period a year earlier.

Operating expenses in the second quarter were $77.8 million, down from $81.0 million in the prior-year quarter and up from $68.6 million in the second quarter last year.

As of June 30, 2024, Agree’s (ADC) portfolio consisted of 2,202 properties in 49 states and contained 45.8 million square feet of gross leasable area. The portfolio was 99.8% leased as of June 30, compared to 99.6% leased as of March 31, had a weighted average remaining lease term of 8.1 years, and generated 68.4% annualized base rents from investment-grade retail tenants.

Total acquisitions during the quarter were ~$185.8 million and included 47 properties that were net leased to retailers across the home improvement, off-price retail, automotive parts, crafts & novelty, and grocery store sectors.

In the second quarter, 10 properties were sold, generating gross proceeds of $36.9 million.

The conference call will be held on July 24 at 9:00 a.m. Eastern Time.

Earlier, Agree Realty FFO of $1.02, in line with expectations, beats revenue of $152.58 million by $1.4 million