Agree Realty Corporation Reports Third Quarter 2026 Results
AGREE REALTY CORP (ADC) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 32301 Woodward Ave. Royal Oak, MI 48073 www.agreerealty.com FOR IMMEDIATE RELEASE Agree Realty Corporation Reports Third Quarter 2026 Results Increases 2026 AFFO Per Share Guidance to $4.58 to $4.59 Balance Sheet Fortified with Approximately $2.0 Billion of Liquidity
How this was made
The 30-second read
Why it matters
The updated AFFO guidance and strong liquidity position could attract income‑focused investors, supporting the stock price.
Market read
The filing provides fresh earnings data and guidance for a listed REIT, offering a concrete trading catalyst.
What to watch
Potential impact of forward equity settlement and upcoming debt maturities.
Agree Realty Corporation Reports Third Quarter 2026 Results; Increases 2026 AFFO Per Share Guidance to $4.58 to $4.59
Third-quarter GAAP net income attributable to common stockholders increased 32.3%, while Core FFO and AFFO per share each increased 4.9%. The Company raised the low end of its 2026 AFFO per share guidance, deployed approximately $357.7 million, and reported approximately $2.0 billion of liquidity with proforma net debt to recurring EBITDA of 3.9 times.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total Revenues, three months ended September 30, 2026 (in thousands)GAAP | $213.9M | – | – |
| Rental income, three months ended September 30, 2026 (in thousands)GAAP | $213.8M | – | – |
| Other revenue, three months ended September 30, 2026 (in thousands)GAAP | $78K | – | – |
| Total operating expenses, three months ended September 30, 2026 (in thousands)GAAP | $110.6M | – | – |
| Real estate taxes, three months ended September 30, 2026 (in thousands)GAAP | $15.78M | – | – |
| Property operating expenses, three months ended September 30, 2026 (in thousands)GAAP | $9.92M | – | – |
| Land lease expense, three months ended September 30, 2026 (in thousands)GAAP | $601K | – | – |
| General and administrative expense, three months ended September 30, 2026 (in thousands)GAAP | $12.39M | – | – |
| Depreciation and amortization, three months ended September 30, 2026 (in thousands)GAAP | $71.91M | – | – |
| Provision for impairment, three months ended September 30, 2026 (in thousands)GAAP | — | – | – |
| Gain on sale of assets, net, three months ended September 30, 2026 (in thousands)GAAP | $5.42M | – | – |
| Gain on involuntary conversion, net, three months ended September 30, 2026 (in thousands)GAAP | $886K | – | – |
| Income from Operations, three months ended September 30, 2026 (in thousands)GAAP | $109.6M | – | – |
| Interest expense, net, three months ended September 30, 2026 (in thousands)GAAP | −$41.00M | – | – |
| Income and other tax expense, three months ended September 30, 2026 (in thousands)GAAP | −$375K | – | – |
| Net Income, three months ended September 30, 2026 (in thousands)GAAP | $68.54M | – | – |
| Net Income Attributable to Common Stockholders, three months ended September 30, 2026 (in thousands)GAAP | $66.49M | – | 32.3% |
| Net Income Per Share Attributable to Common Stockholders, diluted, three months ended September 30, 2026GAAP | $ 0.53 | – | 18.5% |
| Net Income Per Share Attributable to Common Stockholders, basic, three months ended September 30, 2026GAAP | $ 0.53 | – | – |
| Core Funds from Operations - Operating Partnership common unitholders, three months ended September 30, 2026 (in thousands)non-GAAP | $143.4M | – | 17.2% |
| Core Funds from Operations per common share and partnership unit - diluted, three months ended September 30, 2026non-GAAP | $ 1.15 | – | 4.9% |
| Adjusted Funds from Operations - Operating Partnership common unitholders, three months ended September 30, 2026 (in thousands)non-GAAP | $144.2M | – | 17.2% |
| Adjusted Funds from Operations per common share and partnership unit - diluted, three months ended September 30, 2026non-GAAP | $ 1.15 | – | 4.9% |
| Funds from Operations - Operating Partnership common unitholders, three months ended September 30, 2026 (in thousands)non-GAAP | $131.5M | – | – |
| Funds from Operations per common share and partnership unit - diluted, three months ended September 30, 2026non-GAAP | $ 1.05 | – | – |
| Total Revenues, nine months ended September 30, 2026 (in thousands)GAAP | $619.8M | – | – |
| Total operating expenses, nine months ended September 30, 2026 (in thousands)GAAP | $327.4M | – | – |
| Income from Operations, nine months ended September 30, 2026 (in thousands)GAAP | $303.4M | – | – |
| Net Income Attributable to Common Stockholders, nine months ended September 30, 2026 (in thousands)GAAP | $179.5M | – | 25.7% |
| Net Income Per Share Attributable to Common Stockholders, diluted, nine months ended September 30, 2026GAAP | $ 1.47 | – | 13.4% |
| Core Funds from Operations - Operating Partnership common unitholders, nine months ended September 30, 2026 (in thousands)non-GAAP | $415.8M | – | 18.5% |
| Core Funds from Operations per common share and partnership unit - diluted, nine months ended September 30, 2026non-GAAP | $ 3.40 | – | 6.8% |
| Adjusted Funds from Operations - Operating Partnership common unitholders, nine months ended September 30, 2026 (in thousands)non-GAAP | $419.8M | – | 18.3% |
| Adjusted Funds from Operations per common share and partnership unit - diluted, nine months ended September 30, 2026non-GAAP | $ 3.43 | – | 6.7% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
2026 outlook
- NoteAFFO per share: $4.58 to $4.59
- NoteInvestment volume: Approximately $1.6 billion
- NoteDisposition volume: $100 to $150 million
- NoteGeneral and administrative expenses (% of adjusted revenue): 5.3% to 5.6%
- NoteNon-reimbursable real estate expenses (% of adjusted revenue): 1.0% to 1.5%
- NoteIncome and other tax expense: Approximately $2 million
- NoteTreasury stock method dilution: $0.01 to $0.02
- NoteCash G&A expense: 3.7% to 4.0% of adjusted revenue
Capital returns
- Declared monthly cash dividends of $0.267 per common share for each of July, August and September 2026.
- The third-quarter monthly dividends reflect an annualized dividend amount of $3.204 per common share, representing a 4.3% year-over-year increase.
- For the nine months ended September 30, 2026, declared monthly cash dividends totaling $2.388 per common share, compared to $2.295 per common share for the comparable period in 2025.
- Subsequent to quarter end, declared an increased monthly cash dividend of $0.271 per common share for October 2026, payable on November 13, 2026 to stockholders of record at the close of business on October 30, 2026.
- The October monthly dividend reflects an annualized dividend amount of $3.252 per common share, representing a 3.4% increase over the annualized dividend amount of $3.144 per common share from October 2025.
- Declared a monthly cash dividend on its 4.25% Series A Cumulative Redeemable Preferred Stock of $0.08854 per depositary share, equivalent to $1.0625 per annum, payable on November 2, 2026.
What drove it
- Total investment volume was approximately $357.7 million across 94 retail net lease properties during the third quarter and approximately $1.3 billion across 261 properties for the nine months ended September 30, 2026.
- Third-quarter acquisition volume was approximately $308.6 million across 68 properties, acquired at a weighted-average capitalization rate of 7.3% and with a weighted-average lease term of approximately 14.5 years.
- The Company commenced six development or DFP projects with total anticipated costs of approximately $57.4 million and completed seven projects with total costs of approximately $82.4 million.
- The portfolio was approximately 99.8% leased, with a weighted-average lease term of approximately 7.8 years and approximately 65.1% of annualized base rents from investment grade retail tenants.
- The ground lease portfolio was fully occupied and generated 85.2% of annualized base rents from investment grade retail tenants.
- The Company executed new leases, extensions or options on approximately 862,000 square feet during the third quarter.
Concerns
- Interest expense, net was $ (41,001) (in thousands) in the third quarter, compared with $ (35,212) (in thousands) in the comparable period in 2025.
- The Company guided to disposition volume of $100 to $150 million for 2026 after selling 32 properties for gross proceeds of approximately $67.9 million during the first nine months.
- The Company had 8,762,726 shares remaining to be settled under its forward equity offerings as of September 30, 2026.
- The Company stated that AFFO per share guidance uses the current forward SOFR curve to forecast interest expense related to outstanding commercial paper notes and revolver borrowings.
What to watch
- Execution against approximately $1.6 billion of 2026 investment-volume guidance after approximately $1.3 billion of investment volume through the first nine months.
- Disposition activity relative to the revised $100 to $150 million 2026 guidance range.
- Settlement timing and use of the $657.1 million of anticipated net proceeds from outstanding forward equity offerings.
- Portfolio leasing and upcoming lease expirations, including 2027 maturities representing 3.0% of annualized base rent.
- The balance between the 5.36% all-in rate on the new notes, future funding needs, and the stated proforma net debt to recurring EBITDA of 3.9 times.
Balance sheet and cash flow
- Total liquidity was approximately $2.0 billion, including $1.25 billion of availability under the revolving credit facility, $657.1 million of outstanding forward equity, and $91.5 million of cash on hand.
- Cash and cash equivalents were $ 80,559 (in thousands) as of September 30, 2026, compared with $ 16,295 (in thousands) at December 31, 2025.
- Total Debt was $ 3,752,250 (in thousands); Net Debt was $ 3,660,767 (in thousands); Proforma Net Debt was $ 3,003,643 (in thousands).
- Net debt to recurring EBITDA was 4.8 x and proforma net debt to recurring EBITDA was 3.9 x.
- Fixed charge coverage ratio was 4.1 times and net debt to enterprise value was 29.2%.
- Completed a $400.0 million public bond offering of 5.65% senior unsecured notes due 2036; the all-in rate was 5.36% considering terminated swap agreements.
- Terminated related swap agreements of $300.0 million and received net proceeds of $19.4 million upon termination.
- Settled 5.7 million shares under existing forward sale agreements for net proceeds of $425.7 million.
- Outstanding forward equity offerings comprised 8,762,726 shares remaining, with anticipated net proceeds remaining of $ 657,123,735.
- Operating cash flow and free cash flow were not reported.
Analysis
Agree Realty reported a strong third quarter, with total revenues of $ 213,884 (in thousands), compared with $ 183,222 (in thousands) in the comparable 2025 period. Net income attributable to common stockholders increased 32.3% to $ 66,493 (in thousands), while diluted net income per share increased 18.5% to $ 0.53. Core FFO and AFFO each increased 17.2% on an absolute basis to $ 143,418 (in thousands) and $ 144,247 (in thousands), respectively. Per-share Core FFO and AFFO each increased 4.9%, to $ 1.15.
External growth remained a primary contributor. The Company deployed approximately $357.7 million across 94 retail net lease properties in the quarter, including approximately $308.6 million of acquisitions. These acquisitions carried a weighted-average capitalization rate of 7.3% and a weighted-average lease term of approximately 14.5 years. For the first nine months, investment volume reached approximately $1.3 billion across 261 properties. Development and DFP activity also continued, with six projects commenced and seven projects completed during the quarter.
Portfolio fundamentals remained firm. The portfolio was approximately 99.8% leased at quarter end, had a weighted-average lease term of approximately 7.8 years, and derived approximately 65.1% of annualized base rents from investment grade retail tenants. The ground lease portfolio was fully occupied and had 85.2% of annualized base rents from investment grade retail tenants. Near-term contractual maturities were limited, with 2026 lease maturities representing 0.2% of annualized base rents.
The balance sheet was expanded to support investment activity. The Company issued $400.0 million of 5.65% senior unsecured notes due 2036, with a 5.36% all-in rate after related hedge activity, and settled 5.7 million forward shares for $425.7 million of net proceeds. Liquidity was approximately $2.0 billion. Net debt to recurring EBITDA was 4.8 times, while proforma net debt to recurring EBITDA was 3.9 times after deducting anticipated proceeds from outstanding forward equity offerings. Interest expense, net increased to $ (41,001) (in thousands) from $ (35,212) (in thousands) in the comparable quarter.
Management raised the low end of 2026 AFFO per share guidance from $4.57 to $4.58 while retaining the $4.59 high end. It revised investment-volume guidance to approximately $1.6 billion from $1.6 to $1.8 billion and raised disposition-volume guidance to $100 to $150 million from $50 to $100 million. The Company maintained its guidance for G&A expense, non-reimbursable real estate expenses, and income and other tax expense. Dividend declarations continued to grow, with the third-quarter monthly dividend at $0.267 per common share and the subsequent October dividend increased to $0.271 per common share.
Management, verbatim
We are very pleased with our performance through the first nine months of the year, as we invested approximately $1.3 billion across all three of our external growth platforms and are raising our 2026 AFFO per share guidance to a range of $4.58 to $4.59.
Joey Agree, President and Chief Executive Officer
During the quarter, we completed a $400 million public bond offering at an all-in rate of 5.36%, further strengthening our fortress balance sheet.
Joey Agree, President and Chief Executive Officer
We will remain disciplined capital allocators, focusing on value over volume and preserving our liquidity to capitalize on shifts in the transaction market, as we have throughout our history.
Joey Agree, President and Chief Executive Officer
Not in the filing
stated, not guessed- Previous-release outlook was not provided; therefore, no actual-versus-prior-guidance comparison is presented.
- Gross margin was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Segment revenue was not reported because the Company did not report operating segments.
- Quarter-over-quarter comparisons were not reported for the financial metrics.
- A GAAP reconciliation for forward AFFO per share guidance was not provided because the Company stated it could not do so without unreasonable effort.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Agree Realty disclosed its Q3 2026 operating results and revised its 2026 AFFO guidance in an SEC Form 8‑K.
Ticker impact
The 8‑K filing provides Agree Realty's Q3 2026 results and updates its AFFO per share guidance to $4.58‑$4.59, a fresh disclosure.
likely upward pressure as investors price in higher AFFO guidance and strong liquidity
The company reports higher net income, increased AFFO and a raised AFFO guidance range, indicating improved earnings quality and cash generation.
Market effects
Positive for the retail REIT sector as higher AFFO guidance may lift peers.
Limited to U.S. REIT investors.
Minimal global impact.
Counterpoint
Higher guidance may already be priced in; focus on balance sheet leverage before buying.
Key entities
- companyAgree Realty Corporation
U.S. retail REIT reporting Q3 results and revised guidance.
