Agree Realty Corporation (ADC) Brief Analysis and Updates

Updates

2025/06/20 valuation

Price	$75.6
Div	$3.07 (4.06%)
AFFO	$4.29 (P/AFFO = 17.62x)
Expected annual growth	5%
Buy below price	$51.16 (require 6% dividend yield)

2022/05/31 brief assessment

Agree Realty is one of the lowest leverage triple-net lease REITs with a debt to EBITDA ratio of 4.9x. Its tenants are mostly investment grade (67%) retailers and restaurants. At the worst time of 2021, it collected 95% of the rents, which shows the quality of its assets. 

One special thing about Agree Realty is its 14% portfolio in ground leases, which has low default risk, low cash flow, with short-term inflation risk, but long-term stable return. It diversifies the risk portfolio of the company.

Its acquisition and disposition ratio is 4.2% in 2021. The ratio is kept low for the past, which again, shows the quality of the assets, so that it does not have to sell many non-performing assets.

2022 AFFO is about $4. P/AFFO ~ 17.5. 4% dividend yield. Annual growth of at least 10%, so the current price is not expensive.