Agree Realty Corporation (ADC) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Agree Realty Corporation (ADC) Real Estate Portfolio & Strategy

Agree Realty Corporation is a REIT specializing in the acquisition and development of net-leased retail properties, primarily focusing on industry-leading tenants across the United States. With a portfolio spanning 45 states, ADC offers investors exposure to a diversified retail real estate portfolio and consistent dividend income.

What Is the Investment Thesis for ADC?

Agree Realty Corporation presents a notable research candidate due to its focus on net-leased retail properties with high-quality tenants. The company's diversified portfolio across 45 states reduces geographic concentration risk. With a dividend yield of 4.09% and a profit margin of 29.3%, ADC offers a blend of income and stability. Upcoming growth will be driven by strategic acquisitions and development projects, expanding the company's portfolio and revenue base. The company's relatively low beta of 0.51 suggests lower volatility compared to the broader market, making it a noteworthy option for risk-averse investors. The company's P/E ratio of 40.5 reflects investor confidence in its future earnings potential.

Based on FMP financials and quantitative analysis

ADC Key Highlights

• Portfolio of 1,027 properties as of September 30, 2020, providing diversification across tenants and geographies.
• Dividend yield of 4.09% offers a steady income stream for investors.
• Gross margin of 87.6% indicates efficient property management and lease terms.
• Profit margin of 29.3% demonstrates strong profitability within the REIT sector.
• Beta of 0.51 suggests lower volatility compared to the broader market, appealing to risk-averse investors.

Who Are ADC's Competitors?

ADC is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are ADC's Key Strengths?

• Diversified portfolio across 45 states.
• Focus on high-quality tenants with strong credit profiles.
• Consistent dividend payouts to shareholders.
• Experienced management team.

What Are ADC's Weaknesses?

• Exposure to the retail sector, which is subject to changing consumer preferences.
• Reliance on rental income, which can be affected by tenant bankruptcies.
• Sensitivity to interest rate fluctuations.
• Limited geographic diversification compared to some larger REITs.

What Could Drive ADC Stock Higher?

• Strategic acquisitions of net-leased properties to expand the portfolio.
• Development of new retail properties to meet tenant demand.
• Expansion into new retail sectors to diversify the tenant base.
• Integration of e-commerce strategies to enhance property value.
• Continued focus on high-quality tenants with strong credit profiles.

What Are the Key Risks for ADC?

• Financial-distress signal — its Altman Z-Score of 1.57 sits in the distress zone (elevated bankruptcy risk).
• Rich valuation — a P/E of 40.5 runs well above the Real Estate sector’s ~20x, leaving little room for a miss.
• Economic downturns that reduce consumer spending and tenant profitability.
• Rising interest rates that increase borrowing costs and reduce property values.
• Increased competition from other REITs for attractive investment opportunities.
• Tenant bankruptcies that reduce rental income and property occupancy.
• Changes in consumer preferences that impact the retail sector.

What Are the Growth Opportunities for ADC?

• Strategic Acquisitions: Agree Realty can expand its portfolio through targeted acquisitions of net-leased properties. The market for retail properties is vast, with billions of dollars in transactions occurring annually. By focusing on high-quality assets with strong tenants, Agree Realty can enhance its revenue and cash flow. The company can leverage its existing relationships with retailers and developers to identify attractive acquisition opportunities. Timeline: Ongoing.
• Development Projects: Agree Realty can drive growth by developing new retail properties tailored to the needs of its target tenants. The development market offers opportunities to create modern, efficient retail spaces that meet the evolving demands of consumers. By focusing on strategic locations and innovative designs, Agree Realty can attract high-quality tenants and generate attractive returns on investment. Timeline: Ongoing.
• Tenant Diversification: Agree Realty can reduce risk and enhance stability by diversifying its tenant base across various retail sectors. By expanding into new sectors such as healthcare, fitness, and entertainment, Agree Realty can mitigate the impact of any single sector's performance on its overall portfolio. This diversification strategy can attract a broader range of investors and enhance the company's long-term growth prospects. Timeline: Ongoing.
• Geographic Expansion: Agree Realty can expand its geographic footprint by entering new markets with attractive demographics and strong economic growth. By targeting regions with growing populations and rising incomes, Agree Realty can tap into new sources of demand for retail space. This geographic diversification can reduce the company's reliance on any single region and enhance its overall stability. Timeline: Ongoing.
• E-commerce Integration: Agree Realty can adapt to the evolving retail landscape by integrating e-commerce strategies into its property management and development activities. By partnering with retailers to offer online ordering and in-store pickup options, Agree Realty can enhance the value of its properties and attract tenants seeking to leverage the power of e-commerce. This integration can help Agree Realty stay ahead of the curve and capitalize on the growing trend of online shopping. Timeline: Ongoing.

What Opportunities Does ADC Have?

• Strategic acquisitions of net-leased properties.
• Development of new retail properties.
• Expansion into new retail sectors.
• Integration of e-commerce strategies.

What Threats Does ADC Face?

• Economic downturns that reduce consumer spending.
• Rising interest rates that increase borrowing costs.
• Increased competition from other REITs.
• Tenant bankruptcies that reduce rental income.

What Are ADC's Competitive Advantages?

• Diversified portfolio of properties across 45 states.
• Focus on high-quality tenants with strong credit profiles.
• Experienced management team with a proven track record.
• Disciplined capital allocation strategy.
• Strong relationships with retailers and developers.

What Does ADC Do?

Agree Realty Corporation, a publicly traded real estate investment trust (REIT), was founded with the aim of acquiring and developing properties that are net leased to prominent retail tenants. The company's business model centers around building a diversified portfolio of high-quality retail properties leased to tenants operating in various sectors, including grocery, home improvement, auto parts, and convenience stores. Agree Realty's strategy involves focusing on tenants with strong credit profiles and established market positions, which provides a stable and predictable income stream. As of September 30, 2020, Agree Realty owned and operated 1,027 properties across 45 states, encompassing approximately 21.0 million square feet of gross leasable area. The company's growth has been fueled by strategic acquisitions and developments, allowing it to expand its geographic footprint and tenant base. Agree Realty's commitment to disciplined capital allocation and proactive asset management has contributed to its strong financial performance and consistent dividend payouts to shareholders.

What Products and Services Does ADC Offer?

• Acquires properties net leased to retail tenants.
• Develops properties for retail tenants.
• Manages a portfolio of retail properties across 45 states.
• Focuses on tenants with strong credit profiles.
• Generates revenue through rental income.
• Distributes income to shareholders through dividends.

How Does ADC Make Money?

• Acquires and develops retail properties.
• Leases properties to retail tenants under long-term net leases.
• Collects rental income from tenants.
• Distributes a portion of rental income to shareholders as dividends.

What Industry Does ADC Operate In?

Agree Realty Corporation operates within the REIT - Retail industry, which involves owning and managing retail properties. The industry is influenced by consumer spending patterns, interest rates, and e-commerce trends. Agree Realty competes with other REITs such as Digital Realty Trust, Inc. (DLR), CubeSmart (CUBE), Brixmor Property Group Inc. (BRX), Federal Realty Investment Trust (FRT), and First Industrial Realty Trust, Inc. (FR), all vying for similar tenants and investment opportunities. The retail REIT sector is adapting to the evolving retail landscape by focusing on experiential retail and mixed-use developments.

Who Are ADC's Key Customers?

• Industry-leading retail tenants.
• Grocery stores.
• Home improvement stores.
• Auto parts stores.
• Convenience stores.

Company Profile

Agree Realty Corporation operates in the REIT - Retail industry within the Real Estate sector. It is headquartered in Royal Oak, US. The company is led by CEO Joel N. Agree. ADC has traded publicly since 1994.

F-Score 6/9Financial Health

Agree Realty Corporation's Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 1.57 places it in the distress zone, a signal of elevated financial risk.

ROE 4%Key Financial Metrics

Return on equity for Agree Realty Corporation stands at 3.7%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 2.2%, showing how much profit it generates from its asset base. ADC trades at a trailing price-to-earnings ratio of 40.47, above the Real Estate sector average of ~20x. Its free cash flow yield is 1.2%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.83 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 2.5%, the inverse of the P/E and a quick read on earnings relative to price.

ADC Valuation & Market Position

With a $9.74B market cap, Agree Realty Corporation sits in the mid-cap segment of the market. Relative to its peer group, ADC's quantitative score of 64/100 is roughly in line with the peer average of 72/100.

FY2026 estForward Outlook

Wall Street analysts project Agree Realty Corporation revenue of about $830.4M for fiscal 2026, with EPS near $1.94. The estimate reflects 9 contributing analysts.

ADC Financials

ADC Latest News

ADC Analyst Consensus

ADC MoonshotScore

Common Questions About ADC (Real Estate)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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