Q1 2026 Agree Realty Corp Earnings Call Transcript
Key Points
- Agree Realty Corp (ADC) invested nearly $425 million across its three external growth platforms, marking the largest quarterly acquisition volume since 2022.
- The company raised approximately $660 million of forward equity, resulting in $2.3 billion of total liquidity and more than $1.6 billion of hedged capital.
- Pro forma net debt to recurring EBITDA was just 3.2 times, providing significant financial flexibility.
- The portfolio's occupancy rate is strong at 99.7%, with investment-grade exposure over 65%.
- Core FFO per share increased by 8.1% year-over-year, and AFFO per share grew by 7.9%, the highest quarterly growth since Q2 2022.
- The macroeconomic environment remains highly unpredictable, which could impact future investment decisions.
- The treasury stock method dilution is expected to impact full-year 2026 AFFO per share by $0.02 to $0.04 due to higher share prices and more forward equity outstanding.
- Despite strong performance, the company did not raise its investment guidance due to geopolitical uncertainties.
- The percentage of acquisitions from investment-grade-rated tenants decreased this quarter, partly due to the inclusion of privately held companies like Hobby Lobby.
- There is an implied acceleration in credit and occupancy loss expected in Q2 through Q4, although the portfolio is currently performing well.
Good morning, and welcome to the Agree Realty first quarter 2026 conference call. (Operator Instructions) Note this event is being recorded.
At this time, I would like to turn the conference over to Reuben Treatman, Senior Director of Corporate Finance. Please go ahead.
Thank you. Good morning, everyone, and thank you for joining us for Agree Realty's first quarter 2026 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 will make certain statements that may be considered forward-looking under federal securities laws, including statements related to our updated 2026 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-K for a discussion of
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