Agree Realty Receives Upgrade to BBB+ From S&P Global Ratings
Rhea-AI Summary
Agree Realty (NYSE: ADC) has received a credit rating upgrade from S&P Global Ratings, moving from BBB to BBB+ with a stable outlook. This upgrade reflects the company's strong operational performance, characterized by a highly occupied portfolio with minimal near-term lease expirations and a sector-leading investment grade tenant base. S&P also highlighted ADC's conservative financial policy and robust liquidity profile, supported by a well-structured debt maturity schedule and ample credit facility availability. Peter Coughenour, CFO, noted that the company has more than tripled its retail portfolio size since its initial rating in 2020, while improving its investment grade concentration and strengthening its balance sheet.
Positive
- Credit rating upgrade from BBB to BBB+ by S&P Global Ratings
- Highly occupied portfolio with minimal near-term lease maturities
- Sector-leading investment grade tenant base
- Conservative financial policy and strong liquidity profile
- Well-laddered debt maturity schedule with minimal near-term maturities
- More than tripled retail portfolio size since 2020
- Increased investment grade concentration
- Deleveraged balance sheet
Negative
- None.
News Market Reaction – ADC
On the day this news was published, ADC gained 0.91%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Highlights Highly Occupied Portfolio and Sector Leading Investment Grade Tenant Base
According to S&P's press release, the BBB+ issuer rating reflects the Company's sound operating performance, supported by a highly occupied portfolio with minimal near-term lease maturities and a sector leading investment grade rated tenant base. Additionally, S&P noted the Company's conservative financial policy and liquidity profile, supported by its well-laddered debt maturity schedule with minimal near-term maturities, and ample availability under its revolving credit facility.
"The upgrade to a BBB+ credit rating is a testament to the disciplined and prudent manner in which we've grown the Company," said Peter Coughenour, Chief Financial Officer. "We have more than tripled the size of our best-in-class retail portfolio since receiving our initial rating in 2020, while simultaneously increasing our investment grade concentration and deleveraging our fortress balance sheet."
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 June 30, 2024, the Company owned and operated a portfolio of 2,202 properties, located in 49 states and containing approximately 45.8 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
FAQ
What is Agree Realty's new credit rating from S&P Global Ratings?
What factors contributed to Agree Realty's credit rating upgrade?
How has Agree Realty's portfolio changed since its initial credit rating in 2020?
What did S&P Global Ratings say about Agree Realty's debt structure?
