AGREE REALTY CORPORATION Quarterly Report (Form 10-Q)
Agree Realty Corporation reported its financial results for the three and nine months ended September 30, 2025. The company’s total revenue increased by 12.1% to $43.1 million for the three months ended September 30, 2025, compared to $38.5 million for the same period in 2024. Net income for the three months ended September 30, 2025 was $14.1 million, or $0.12 per diluted share, compared to $12.3 million, or $0.11 per diluted share, for the same period in 2024. For the nine months ended September 30, 2025, total revenue increased by 11.4% to $124.9 million, compared to $112.1 million for the same period in 2024. Net income for the nine months ended September 30, 2025 was $39.4 million, or $0.34 per diluted share, compared to $34.5 million, or $0.31 per diluted share, for the same period in 2024. The company’s financial performance was driven by strong same-store property operating results and the acquisition of new properties.
Overview
Agree Realty Corporation is a fully integrated real estate investment trust (REIT) primarily focused on the ownership, acquisition, development, and management of retail properties net leased to industry-leading tenants. The company was founded in 1971 and has grown its portfolio to 2,603 properties located in all 50 states, totaling approximately 53.7 million square feet of gross leasable area (GLA) as of September 30, 2025.
Results of Operations
Overall, the company’s real estate investment portfolio grew from $7.13 billion in net investment amount representing 2,271 properties with 47.2 million square feet of GLA as of September 30, 2024 to $8.30 billion in net investment amount representing 2,603 properties with 53.7 million square feet of GLA at September 30, 2025. This growth was driven by acquisitions, with the company completing 227 property acquisitions for $1.09 billion during the first nine months of 2025.
Comparison of the three months ended September 30, 2025 to the three months ended September 30, 2024:
- Rental income increased 19% to $183.2 million, primarily due to the acquisition and ownership of additional properties.
- General and administrative expenses increased 19% to $10.9 million, mainly due to higher compensation costs and stock-based compensation.
- Interest expense increased 22% to $35.2 million, primarily from higher borrowings to finance acquisitions and development.
- Net income increased 17% to $52.3 million.
Comparison of the nine months ended September 30, 2025 to the nine months ended September 30, 2024:
- Rental income increased 16% to $527.7 million, again driven by the expanded property portfolio.
- General and administrative expenses increased 16% to $33.0 million, for similar reasons as the quarterly comparison.
- Interest expense increased 23% to $98.3 million, also due to higher borrowings.
- Net income increased 3% to $148.8 million.
Liquidity and Capital Resources
The company expects to meet its short-term liquidity needs through cash on hand, cash from operations, settlement of outstanding forward equity, and borrowings under its revolving credit facility and commercial paper program. As of September 30, 2025, the company had over $1.91 billion of liquidity.
The company anticipates funding its long-term capital needs through cash from operations, borrowings, and the issuance of debt and equity. In 2025, the company completed a $400 million public offering of senior unsecured notes and repaid $50 million in senior unsecured notes at maturity.
The company’s total debt to total enterprise value was 29.0% as of September 30, 2025, and it was in compliance with all loan covenants.
Outlook
Agree Realty’s strong financial position, growing property portfolio, and disciplined approach to acquisitions and development position the company well for continued growth and success. The company’s focus on net-leased retail properties with investment-grade tenants provides stability, while its access to diverse capital sources supports its ability to fund future expansion.
