Agree Realty Q2 2020 Earnings Report
Key Takeaways
Agree Realty Corporation announced record second quarter 2020 results, with net income increasing by 36.1% and core FFO rising by 32.0%. The company also increased its 2020 acquisition guidance to $900 million to $1.1 billion.
Net income attributable to the Company increased 36.1% to $25.3 million.
Core FFO increased 32.0% to $40.9 million.
Total acquisition volume for the second quarter of 2020 was approximately $271.8 million.
The Company increased its full-year acquisition guidance to a range of $900 million to $1.1 billion.
Agree Realty
Agree Realty
Forward Guidance
The Company’s outlook for total acquisition volume in 2020, which includes several significant assumptions, is being increased to a range of $900 million to $1.1 billion from a previous range of $700 million to $800 million. The Company is increasing the lower end of its total disposition guidance range for 2020 from $35 million to $50 million and is maintaining the upper end of the range at $75 million.
Positive Outlook
- Increased acquisition guidance to a range of $900 million to $1.1 billion.
- Company received July rent payments from 94% of its portfolio and entered into deferral agreements with tenants representing 3% of July rents.
- Portfolio was approximately 99.8% leased.
- Weighted-average remaining lease term of approximately 9.7 years.
- Properties were acquired at a weighted-average capitalization rate of 6.5%.
Challenges Ahead
- Potential adverse effect of the current pandemic of the novel coronavirus, or COVID-19, on the financial condition
- Weakening of real estate markets
- Decreases in the availability of credit
- Increases in interest rates
- Adverse changes in the retail industry