Home Featured Agree Realty’s Strong Quarter Drives Numbers Higher, Analyst Says

Agree Realty’s Strong Quarter Drives Numbers Higher, Analyst Says

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Agree Realty Corp. recently revealed its Q2 numbers showing that total rental revenue, which includes minimum rents and percentage rents, for the three months ended June 30, 2017 increased 26.3% to $25.2 million, compared to total rental revenue of $19.9 million for the comparable period in 2016. The REIT also reported that total rental revenue for the six months ended June 30, 2017 increased 28.0% to $49.4 million, compared to total rental revenue of $38.6 million for the comparable period in 2016.

“We are very pleased with our performance during the quarter as we continue to deliver strong results across all aspects of our business,” says Joey Agree, President and Chief Executive Officer of Agree Realty Corporation. “During the quarter, we invested in 37 high-quality net lease properties across our three external growth platforms, while also maintaining capacity and flexibility with our leading balance sheet. We remain intently focused on industry-leading retailers that employ a cohesive omni-channel strategy or offer a compelling 21st century customer experience.”

Second Quarter 2017 Financial and Operating Highlights Are as Follows:

Invested $139.2 million in 37 retail net lease properties

Commenced three development and Partner Capital Solutions (“PCS”) projects

Raised approximately $108.0 million in net proceeds from the issuance of 2.4 million common shares

Increased rental revenue 26.3% to $25.2 million

Net Income per share attributable to the Company increased 17.4% to $0.56

Net Income attributable to the Company increased 39.5% to $14.9 million

Increased Funds from Operations (“FFO”) per share 10.2% to $0.67

Increased FFO 30.6% to $18.0 million

Increased Adjusted Funds from Operations (“AFFO”) per share 9.7% to $0.67

Increased AFFO 30.1% to $17.9 million

Declared a quarterly dividend of $0.505 per share, an increase of 5.2% over the dividend per share declared in the second quarter of 2016

According to analyst firm Canaccord Genuity, with three external growth platforms yielding accretive investment opportunities, ample investment capacity and estimates that are likely to ove higher on investment volumes completed to date, the firm continues to see upside to Agree Realty Corp.

“Management indicated that while Q2 acquisition volumes were elevated, investors should not expect $131 million in acquisitions on a run-rate basis. Several deals that had been in the works for years happened to close at around the same time in Q2,” said Canaccord.

Also in the Q2 report, Agree Realty’s outlook for acquisition volume in 2017, which assumes continued growth in economic activity, moderate interest rate growth, positive business trends and other significant assumptions, remains between $250 million and $275 million of high-quality retail net lease properties.  The company’s disposition guidance for 2017 remains between $30 million and $50 million.