ADC Agree Realty (ADC) Q3 FY26 earnings call
Agree Realty delivered a strong Q3 FY26, marked by disciplined execution and strategic capital deployment in a challenging macroeconomic environment. The company proactively adjusted its investment strategy, repricing its pipeline and culling lower-yield opportunities, leading to expanded acquisition cap rates. With a robust balance sheet and significant liquidity, Agree is positioned for mid-single-digit AFFO growth in 2027 by prioritizing value creation over volume and leaning into capital recycling.
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ADC operating KPIs by quarter
| KPI | Mar 2026 Q1 FY26 | Jun 2026 Q2 FY26 | This call Sep 2026 Q3 FY26 | Change vs prior quarter |
|---|---|---|---|---|
| Properties Acquisitions | 100During the first quarter, we invested nearly $425 million in 100 properties across these 3 platforms.Source: earnings call transcript | 82This includes $451 million of acquisitions across 82 retail net lease assets, the highest level of quarterly activity since the depths of COVID.Source: earnings call transcript | 68This past quarter, we invested a total of approximately $360 million in 94 high-quality retail net lease properties, including the acquisition of 68 assets for approximately $310 million.Source: earnings call transcript | -17.1% |
| Properties Dispositions | 7We sold 7 properties during the quarter for total gross proceeds of approximately $11 million at a weighted average cap rate of 6.8%.Source: earnings call transcript | 14On the disposition front, we sold 14 properties during the quarter for gross proceeds of approximately $30 million at a weighted average cap rate of 7%.Source: earnings call transcript | 11We sold 11 properties during the quarter for gross proceeds of approximately $27 million at a weighted average cap rate of 6.5%, 80 basis points inside the cap rate on acquisitions completed during the period.Source: earnings call transcript | -21.4% |
| Square feet Leased | 876K sq ft+We executed new leases, extensions or options on over 876,000 square feet of gross leasable area during the first quarter with a recapture rate of over 104%.Source: earnings call transcript | ~760K sq ftWe executed new leases, extensions or options on approximately 760,000 square feet of gross leasable area during the second quarter with a recapture rate of approximately 105%.Source: earnings call transcript | 860K sq ft+We executed new leases, extensions or options on over 860,000 square feet of GLA during the third quarter with a recapture rate of approximately 106%, the highest level in 6 quarters.Source: earnings call transcript | — |
| Properties | 2,756As of quarter end, our best-in-class portfolio comprised 2,756 properties spanning all 50 states.Source: earnings call transcript | 2,825At quarter end, our best-in-class portfolio stood at 2,825 properties, spanning all 50 states in the District of Columbia.Source: earnings call transcript | — | +2.5% |
| Properties Ground leases | 261The portfolio included 261 ground leases, comprising over 10% of annualized base rent.Source: earnings call transcript | 268The portfolio includes 268 ground leases comprising over 10% of annualized base rents our investment-grade exposure stood at nearly 2/3 of our portfolio.Source: earnings call transcript | 270Our portfolio includes 270 ground leases, comprising 10% of annualized base rents, which have investment-grade exposure of approximately 85%.Source: earnings call transcript | +0.7% |
| Occupancy rate | 99.7%Our investment-grade exposure stood at over 65% and occupancy is strong at 99.7%, up 50 basis points year-over-year.Source: earnings call transcript | 99.8%Given the progress achieved year-to-date, our occupancy ticked up up 10 basis points sequentially to match another company record of 99.8%.Source: earnings call transcript | 99.8%We invested in high-quality opportunities across all 3 external growth platforms, while our best-in-class portfolio remained at a company record 99.8% occupied.Source: earnings call transcript | 0 pt |
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