Agree Realty Announces 2025 Investment Activity & 2026 Investment Outlook

Key Terms

developer funding platform financial

A developer funding platform is an online service that connects people or organizations who build things—such as software, apps, or real estate projects—with sources of money, whether through loans, equity investments, subscriptions, or crowdfunded contributions. It matters to investors because it turns individual projects into investable opportunities, like a marketplace where you can back specific builders and potentially share in future returns or revenue, while also making it easier to assess risk and track progress.

weighted-average capitalization rate financial

A weighted-average capitalization rate is a single, blended percentage that expresses the overall expected return on a group of income-producing properties or on different income streams within one property, calculated by combining each component’s capitalization rate according to its share of income or value. Investors use it like a portfolio’s average interest rate — it helps convert projected annual property income (after expenses) into an estimated market value and makes it easier to compare risk and return across assets.

investment grade financial

A credit rating label assigned to bonds or borrowers that signals relatively low risk of default; think of it as a strong health check for a company's or government's ability to repay debt. It matters to investors because investment-grade status typically means lower interest costs for the borrower, greater eligibility for conservative funds and pension portfolios, and generally more stable returns compared with higher-risk, non-investment-grade debt.

View in glossary

ground leased assets financial

Ground leased assets are properties where the land is rented long-term to a tenant who owns and operates the building or improvements on that land, like someone leasing a plot to run a shop while they own the shop itself. Investors care because the split between landowner and building owner changes who receives steady rent, who bears maintenance and redevelopment risk, and how easily the asset can be financed or sold—similar to buying a parking spot with someone else’s garage on top.

term loan financial

A term loan is a type of loan that is borrowed for a set period of time, with a fixed schedule for repaying the money, usually in regular payments. It matters to investors because it represents a company's borrowing costs and financial stability; reliable repayment of these loans can indicate strong financial health, while difficulties may signal potential risks.

forward starting swaps financial

A forward starting swap is a contract agreed today that will begin at a specified future date, where two parties exchange payment streams—typically a fixed rate for a variable rate tied to an interest benchmark. Investors and treasurers use them to lock in future borrowing costs or hedge anticipated interest-rate exposure, like making a reservation now to start a loan at a known rate later, avoiding uncertainty about rates when the start date arrives.

at-the-market equity financial

An at-the-market equity program lets a company sell new shares directly into the open market at whatever the current trading price is, using a broker to place the sales over time rather than all at once. Investors care because it provides quick, flexible funding but can gradually increase the number of shares available and put downward pressure on the stock price, similar to a store quietly adding more items to the shelves while customers are buying.

revolving credit facility financial

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

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2026 Investment Guidance of $1.25 Billion to $1.50 Billion

Balance Sheet Fortified with Liquidity of Over $2.0 Billion

ROYAL OAK, Mich.--(BUSINESS WIRE)-- Agree Realty Corporation (NYSE: ADC) (the “Company”) today announced a summary of its investment activity in 2025, introduced investment guidance for 2026, and provided an update on its portfolio as well as its fourth quarter capital markets activity.

2025 Investment Activity

Total real estate investment volume for 2025, inclusive of acquisition, development, and Developer Funding Platform (“DFP”) projects completed or under construction, amounted to a total of approximately $1.55 billion. The 338 properties are net leased to industry-leading tenants, span 29 retail sectors and are located in 41 states across the country.

During the twelve months ended December 31, 2025, the Company acquired 305 retail net lease properties for total acquisition volume of approximately $1.44 billion. The acquisitions were completed at a weighted-average capitalization rate of 7.2% and had a weighted-average remaining lease term of 11.5 years. Approximately 64.9% of annualized base rents acquired during the year were derived from investment grade retail tenants. Approximately 6.9% of annualized base rents acquired during the year were derived from ground leased assets.

Acquisition volume for the fourth quarter totaled over $347 million at a weighted-average capitalization rate of 7.1%. Approximately 18.2% of annualized base rents acquired were derived from ground leased assets. The acquisitions had a weighted-average remaining lease term of 9.6 years, and approximately 65.7% of annualized base rents were generated from investment grade retail tenants.

As of December 31, 2025, the Company’s portfolio generated approximately 66.8% of annualized base rents from investment grade retail tenants. Properties ground leased to tenants increased to approximately $75 million of annualized base rents and represented approximately 10.2% of total annualized base rents.

CEO Comments

“I’m very pleased with our performance over the past twelve months,” said Joey Agree, President and Chief Executive Officer. “We enter 2026 with a fortified balance sheet with no material debt maturities, a best-in-class portfolio, and strong pipelines across our three external growth platforms positioning us to accelerate earnings growth in the new year.”

2026 Investment Outlook

The Company’s outlook for investment volume in 2026, which includes capital deployment through its acquisition, development and DFP platforms, is between $1.25 billion and $1.50 billion of retail net lease properties.

Capital Markets Update

In November 2025, the Company entered into an agreement for an unsecured $350 million 5.5-year term loan (the “Term Loan”). The Company had previously entered into $350 million of forward starting swaps to fix SOFR until maturity in May 2031. Including the impact of the swaps, the interest rate on the Term Loan is fixed at 4.02% based on the Company's current A- credit rating. The Term Loan includes an accordion option that allows the Company to request additional lender commitments up to a total of $500 million. As of December 31, 2025, no amounts had been drawn under the Term Loan, which has a 12-month delayed draw feature.

During the fourth quarter of 2025, the Company entered into forward sale agreements in connection with its at-the-market equity (“ATM”) program to sell an aggregate of 1.5 million shares of common stock for anticipated net proceeds of over $109 million. Additionally, the Company settled 5.9 million shares under existing forward sale agreements and received net proceeds of approximately $428 million.

As of December 31, 2025, the Company had total liquidity of over $2.0 billion, which includes approximately $1.3 billion of availability under its revolving credit facility and Term Loan after adjusting for outstanding commercial paper notes and revolver borrowings, over $716 million of outstanding forward equity, and cash on hand.

The following table presents the Company’s outstanding forward equity offerings as of December 31, 2025:

Forward Equity Offerings		Shares Sold		Shares Settled		Shares Remaining		Net Proceeds Received		Anticipated Net Proceeds Remaining
Q4 2024 ATM Forward Offerings		739,013		570,736		168,277		$42,200,880		$12,836,102
Q1 2025 ATM Forward Offerings		2,408,201		-		2,408,201		-		180,713,253
Q2 2025 ATM Forward Offerings		362,021		-		362,021		-		27,283,625
April 2025 Forward Offering		5,175,000		-		5,175,000		-		385,775,550
Q4 2025 ATM Forward Offerings		1,505,746		-		1,505,746		-		109,448,973
Total Forward Equity Offerings		10,189,981		570,736		9,619,245		$42,200,880		$716,057,503

About Agree Realty Corporation

Agree Realty Corporation is a publicly traded real estate investment trust that is RETHINKING RETAIL through the acquisition and development of properties net leased to industry-leading, omni-channel retail tenants. As of December 31, 2025, the Company owned and operated a portfolio of 2,674 properties, located in all 50 states and containing approximately 55.5 million square feet of gross leasable area. The Company’s common stock is listed on the New York Stock Exchange under the symbol “ADC”. For additional information on the Company and RETHINKING RETAIL, please visit www.agreerealty.com.

Forward-Looking Statements

This press release contains forward-looking statements, including statements about projected financial and operating results, the Company’s 2026 investment outlook, and the settlement of outstanding forward equity, within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe the Company’s future plans, strategies, and expectations, are generally identifiable by use of the words “anticipate,” “estimate,” “should,” “expect,” “believe,” “intend,” “may,” “will,” “seek,” “could,” “project” or other similar expressions. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the Company’s control and which could materially affect the Company’s results of operations, financial condition, cash flows, performance or future achievements or events. Factors which may cause actual results to differ materially from current expectations include, but are not limited to, the factors included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, including those set forth under the headings “Business,” “Risk Factors,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and subsequent quarterly reports filed with the SEC. The forward-looking statements included in this press release are made as of the date hereof. Unless legally required, the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events, changes in the Company’s expectations or assumptions or otherwise.

For further information about the Company’s business and financial results, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of the Company’s SEC filings, including, but not limited to, its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, copies of which may be obtained at the Investors section of the Company’s website at www.agreerealty.com.

The Company defines the “weighted-average capitalization rate” for acquisitions and dispositions as the sum of contractual fixed annual rents computed on a straight-line basis over the primary lease terms and anticipated annual net tenant recoveries, divided by the purchase and sale prices for occupied properties.

The Company defines “annualized base rent” as the annualized amount of contractual minimum rent required by tenant lease agreements as of December 31, 2025, computed on a straight-line basis. Annualized base rent is not, and is not intended to be, a presentation in accordance with generally accepted accounting principles. The Company believes annualized contractual minimum rent is useful to management, investors, and other interested parties in analyzing concentrations and leasing activity.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260105971382/en/

Peter Coughenour
Chief Financial Officer
Agree Realty Corporation
(248) 737-4190

Source: Agree Realty Corporation