Agree Realty Declares Monthly Common and Preferred Dividends

Rhea-AI Summary

Agree Realty Corporation (ADC) announces a 2.9% increase in monthly cash dividend to $0.247 per common share, reflecting an annualized dividend amount of $2.964 per common share. The Company also 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.

Financial Analyst

The announcement by Agree Realty Corporation of a dividend increase is a significant indicator of the company's financial health and its commitment to shareholder returns. The increment of 2.9% over the previous annualized dividend suggests that the company is experiencing a positive cash flow situation, which enables it to share more profits with its shareholders.

From an investment perspective, this may enhance the stock's attractiveness to income-focused investors, particularly in a market environment where stable income streams are highly valued. Moreover, the increase might be interpreted as a signal of management's confidence in the company's future earnings and cash flow stability.

However, investors should also consider the payout ratio and whether the increased dividends are sustainable in the long run without compromising the company's growth potential or financial stability. The real estate sector is sensitive to interest rate changes and an analysis of the company's debt levels and interest coverage ratios would be pertinent.

Market Research Analyst

The 2.9% dividend increase by Agree Realty Corporation may reflect not only the company's individual performance but also broader industry trends. As a player in the real estate investment trust (REIT) market, Agree Realty's ability to raise dividends might indicate a robust commercial real estate market, with potential implications for other companies in the sector.

Investors might view this dividend increase as a benchmark against which to measure other REITs, potentially influencing market expectations and investment decisions. It's also important to note that REITs are legally required to distribute at least 90% of their taxable income to shareholders and this increase could suggest that Agree Realty is generating ample taxable income.

Additionally, the timing of the announcement and the payment dates are critical for investors who rely on dividend payments for income, as it affects their cash flow planning.

Economist

The decision by Agree Realty Corporation to raise its dividend payout can be seen as a microcosmic reflection of the broader economic environment. In a stable or growing economy, businesses tend to perform well, which can lead to increased dividend payouts. Conversely, a dividend increase can contribute to the overall economic sentiment by projecting corporate confidence and potentially stimulating consumer spending among shareholders.

However, economists would also advise investors to look at the inflationary context. If the dividend growth rate is lower than the rate of inflation, the real value of the dividends could be eroding, which might affect the long-term purchasing power of the investors.

Furthermore, in a rising interest rate environment, the cost of borrowing increases, which could impact the company's expansion plans and its ability to maintain or increase dividends in the future. Therefore, the sustainability of such dividend increases should be evaluated against the backdrop of the current economic cycle.

ROYAL OAK, Mich., Jan. 11, 2024 /PRNewswire/ -- Agree Realty Corporation (NYSE: ADC) (the "Company") today announced that its Board of Directors has authorized, and the Company has declared, a monthly cash dividend of $0.247 per common share. The monthly dividend reflects an annualized dividend amount of $2.964 per common share, representing a 2.9% increase over the annualized dividend amount of $2.880 per common share from the first quarter of 2023. The dividend is payable February 14, 2024 to stockholders of record at the close of business on January 31, 2024.

Additionally, the Company's Board of Directors has authorized, and the Company has declared, a monthly cash dividend on its 4.25% Series A Cumulative Redeemable Preferred Stock of $0.08854 per depositary share, which is equivalent to $1.0625 per annum. The dividend is payable February 1, 2024 to stockholders of record at the close of business on January 22, 2024.

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, 2023, the Company owned and operated a portfolio of 2,135 properties, located in 49 states and containing approximately 44.2 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.

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SOURCE Agree Realty Corporation

What is the new monthly cash dividend for Agree Realty Corporation (ADC)?

The new monthly cash dividend for Agree Realty Corporation (ADC) is $0.247 per common share.

What is the annualized dividend amount for Agree Realty Corporation (ADC) per common share?

The annualized dividend amount for Agree Realty Corporation (ADC) per common share is $2.964.

When is the dividend payable to stockholders of Agree Realty Corporation (ADC)?

The dividend is payable on February 14, 2024, to stockholders of record at the close of business on January 31, 2024.

What is the monthly cash dividend for Agree Realty Corporation (ADC) on its 4.25% Series A Cumulative Redeemable Preferred Stock?

The monthly cash dividend on its 4.25% Series A Cumulative Redeemable Preferred Stock is $0.08854 per depositary share, equivalent to $1.0625 per annum.