•
Sep 30, 2022

Agree Realty Q3 2022 Earnings Report

Agree Realty reported third quarter results, increased acquisition guidance, and fortified the balance sheet.

Key Takeaways

Agree Realty Corporation reported an increase in net income and Core FFO for the third quarter of 2022, driven by strategic capital markets transactions and a strong portfolio. The company increased the lower end of its 2022 acquisition guidance to $1.6 billion and fortified its balance sheet with over $800 million of capital raised.

Net income for the three months ended September 30, 2022 increased 3.3% to $37.6 million, compared to $36.4 million for the comparable period in 2021.

Core FFO for the three months ended September 30, 2022 increased 22.2% to $78.2 million, compared to Core FFO of $64.0 million for the comparable period in 2021.

Acquisition volume for the third quarter totaled $360.2 million and included 98 properties net leased to leading retailers.

The Company is increasing the lower end of its outlook for acquisition volume for the full-year 2022 to $1.6 billion and is maintaining the upper end of the range at $1.7 billion of high-quality retail net lease properties.

Total Revenue
$110M
Previous year: $87.5M
+25.7%
EPS
$0.96
Previous year: $0.89
+7.9%
Gross Leasable Area
35.8M
Previous year: 27.7M
+29.2%
Gross Profit
$96.6M
Previous year: $77M
+25.4%
Cash and Equivalents
$6.07M
Previous year: $91.9M
-93.4%
Free Cash Flow
-$248M
Previous year: -$272M
-9.0%
Total Assets
$4.03B
Previous year: $5B
-19.4%

Agree Realty

Agree Realty

Forward Guidance

Agree Realty Corporation is increasing the lower end of its outlook for acquisition volume for the full-year 2022 to $1.6 billion and is maintaining the upper end of the range at $1.7 billion of high-quality retail net lease properties. For the full-year 2022, the Company anticipates commencing between $85 million and $125 million of development and PCS projects.

Positive Outlook

  • Increasing the lower end of its outlook for acquisition volume for the full-year 2022 to $1.6 billion
  • Maintaining the upper end of the range at $1.7 billion of high-quality retail net lease properties.
  • Anticipates commencing between $85 million and $125 million of development and PCS projects for the full-year 2022
  • Industry-leading portfolio
  • Fortress balance sheet

Challenges Ahead

  • Potential adverse effect of ongoing worldwide economic uncertainties
  • Current pandemic of the novel coronavirus, or COVID-19
  • Increased inflation and interest rates on the financial condition
  • Weakening of real estate markets
  • Decreases in the availability of credit