Q1 2025 Agree Realty Corp Earnings Call Transcript
Key Points
- Agree Realty Corp (ADC) invested over $375 million across its three external growth platforms, marking the largest quarter of investment volume since Q3 2023.
- The company has a strong liquidity position with $1.9 billion available, including $1.2 billion of hedge capital, providing flexibility and protection against market volatility.
- ADC raised $181 million of forward equity via its ATM program, maintaining a robust balance sheet with no material debt maturities until 2028.
- The company increased its investment guidance range for 2025 from $1.1 billion-$1.3 billion to $1.3 billion-$1.5 billion, reflecting a 47% increase over last year's investment volume.
- ADC's portfolio occupancy remained solid at 99.2%, with a focus on recession-resistant retailers that have adapted to omnichannel strategies.
- The macroeconomic environment remains volatile and unpredictable, posing challenges for future growth and stability.
- Despite raising investment guidance, the AFFO per share guidance was only increased by $0.01, partly due to anticipated treasury stock method dilution.
- The company faces potential impacts from tariffs, although it believes its portfolio is well-positioned to withstand these challenges.
- ADC's exposure to pharmacy and dollar stores has decreased, reflecting concerns about overbuilding and market saturation in these sectors.
- The company experienced a temporary dip in occupancy due to issues with former Big Lots locations, although resolutions are underway.
Good morning, and welcome to the Agree Realty first-quarter 2025 conference call. (Operator Instructions) Note this event is being recorded.
I will now turn the conference over to Reuben Treatman, Senior Director of Corporate Finance. Please go ahead, Reuben.
Thank you. Good morning, everyone, and thank you for joining us for Agree Realty's first-quarter 2025 earnings call. Before turning the call over to Joey and Peter to discuss our results for the quarter, let me first run through the cautionary language. Please note that during this call we'll make certain statements that may be considered forward-looking under federal securities law, including statements related to our updated 2025 guidance.
Our actual results may differ significantly from the matters discussed in any forward-looking statements for a number of reasons. Please see yesterday's earnings release and our SEC filings, including our latest Annual Report on Form 10-Q for a discussion of various risks and
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