Agree Realty

ADC Q2 2025 Earnings

Reported Jul 31, 2025 at 4:06 PM ET · SEC Source

Q2 25 EPS

$1.06

BEAT +132.41%

Est. $0.46

Q2 25 Revenue

$175.5M

BEAT +1.42%

Est. $173.1M

vs S&P Since Q2 25

-13.4%

TRAILING MARKET

ADC +4.6% vs S&P +18.0%

Market Reaction

Did ADC Beat Earnings? Q2 2025 Results

Agree Realty delivered a steady second quarter, posting AFFO of $1.06 per share and revenue of $175.53 million, up from $152.57 million a year ago, as aggressive acquisition activity continued to expand the net-lease REIT's footprint. The company dep… Read more Agree Realty delivered a steady second quarter, posting AFFO of $1.06 per share and revenue of $175.53 million, up from $152.57 million a year ago, as aggressive acquisition activity continued to expand the net-lease REIT's footprint. The company deployed approximately $327.50 million across 91 properties in Q2 at a 7.1% weighted-average cap rate, pushing year-to-date investment volume to $686.40 million and driving Core FFO 11.3% higher to $115.94 million. GAAP net income dipped to $47.34 million from $52.87 million a year ago, reflecting heavier depreciation tied to the enlarged 2,513-property portfolio, which maintained 99.6% occupancy. Management backed its confidence with raised full-year guidance, lifting AFFO per share expectations to $4.29-$4.32 and increasing investment volume targets to $1.40 billion-$1.60 billion. A concurrent dividend increase of 2.4% on its common shares underscored the constructive tone, while $2.30 billion in total liquidity, including $1.30 billion of unsettled forward equity, positions the company to sustain that acquisition pace through 2026.

Key Takeaways

  • Q2 acquisition volume of approximately $327.5 million across 91 net-leased properties at 7.1% weighted-average cap rate
  • First half 2025 total investment volume of approximately $686.4 million across 137 properties
  • Portfolio 99.6% leased with 67.8% of annualized base rents from investment-grade tenants
  • Core FFO per share increased 1.3% to $1.05; AFFO per share increased 1.7% to $1.06
  • Rental income grew to $175.4 million from $152.4 million year-over-year
  • Leasing activity of approximately 948,000 square feet in Q2 with 104% recapture rate year-to-date
  • 25 development or DFP projects completed or under construction for approximately $140 million
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ADC YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

“We are very pleased with our strong performance during the first half of the year. During the quarter, we strategically raised over $800 million of debt and equity capital, bolstering our fortress balance sheet which now has $2.3 billion of liquidity. Given the continued strong performance of our portfolio, our fully funded balance sheet, and increasing activity across all three external growth platforms, we are increasing full-year 2025 investment guidance to a range of $1.4 billion to $1.6 billion and raising 2025 AFFO per share guidance to a range of $4.29 to $4.32.”

— Joey Agree, Q2 2025 Earnings Press Release