Agree Realty ADC Q1 2026 Earnings Transcript

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Wednesday, April 22, 2026 astatine 9:00 a.m. ET

• President and Chief Executive Officer — Joey Agree

• Chief Financial Officer — Peter Coughenour

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Joey Agree: Thank you, Reuben, and convey you each for joining america this morning. I'm highly pleased with our show to commencement the twelvemonth arsenic we person continued to execute connected each fronts. During the quarter, we invested astir $425 cardinal crossed our 3 outer maturation platforms, portion further strengthening our market-leading portfolio. The $403 cardinal of acquisitions completed during the play represents our largest quarterly acquisition measurement since 2022 arsenic we proceed to root superior risk-adjusted opportunities. While the macro backdrop remains highly unpredictable, we person ne'er been amended positioned. During the quarter, we raised astir $660 cardinal of guardant equity done our ATM.

We present bask $2.3 cardinal of full liquidity and much than $1.6 cardinal of hedged capital, including a institution grounds $1.4 cardinal of outstanding guardant equity. At 4th end, pro forma nett indebtedness to recurring EBITDA was conscionable 3.2x, giving america meaningful flexibility to execute careless of superior markets volatility. As a reminder, we person nary worldly indebtedness maturities until 2028. We person joined this fortress equilibrium expanse with the highest prime retail portfolio successful the state that lone continues to improve. In a K-shaped economy, our industry-leading tenants enactment poised to leverage their standard and worth propositions to thrust further stock gains.

We are consistently seeing starring retailers with the equilibrium expanse and operating subject winning crossed cycles and expanding their brick-and-mortar footprints. Our pipeline crossed each 3 outer maturation platforms is robust, yet our attack remains unchanged. We volition enactment accordant wrong our established concern parameters without compromising our underwriting standards. While our concern successful net guidance stay unchanged, I would enactment that we person accrued our treasury banal method dilution successful anticipation of an elevated banal terms and arsenic good arsenic the further guardant equity rise during the quarter. We'll proceed to supply updates arsenic the twelvemonth progresses, and Peter volition supply further details connected our guidance and input shortly. Turning to our outer maturation activity.

We had an progressive commencement to the year, leveraging our unsocial marketplace positioning and heavy relationships with retail partners to uncover opportunities crossed each 3 platforms. During the archetypal quarter, we invested astir $425 cardinal successful 100 properties crossed these 3 platforms. Of note, during the quarter, we executed a merchantability leaseback with Hobby Lobby connected their corporately owned stores. As we've discussed connected anterior net calls, Hobby Lobby is privately owned, has a equilibrium expanse and stands arsenic a wide marketplace person successful the trade and hobby space. They are a terrific relation and partner. As a reminder, we bash not impute investment-grade oregon shadiness investment-grade ratings successful our IG percentage.