10-Q · April 21, 2026
Agree Realty reported strong portfolio-driven top-line and earnings growth for the quarter: rental income rose 19% year-over-year to $200,676,000 and net income increased 32% to $62,231,000. Funds from operations also…
Earnings analysis · 10-Q
ADC earnings analysis
Filed October 20, 2026 · Our reading of the company's report
The latest report
Agree Realty delivered a third-quarter revenue and AFFO-per-share beat, with revenue of $213.884 million and AFFO per share of $1.15, and raised 2026 AFFO-per-share guidance to $4.58-$4.59. Revenue increased from $205…
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Agree Realty delivered a third-quarter revenue and AFFO-per-share beat, with revenue of $213.884 million and AFFO per share of $1.15, and raised 2026 AFFO-per-share guidance to $4.58-$4.59. Revenue increased from $205 million in the prior quarter and $183 million a year earlier, while quarterly investment activity reached $357.7 million. The principal offset is substantial long-term debt, including $3.010 billion of senior unsecured notes, although near-term floating-rate exposure is limited and $700.0 million of term debt is hedged.
What stood out
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Revenue Beat and Year-over-Year Growth
Third-quarter revenue was $213.884 million, exceeding the $212.512 million consensus estimate by $1.372 million, or approximately 0.6%. Revenue increased from $205 million in the prior quarter and $183 million in the prior-year quarter.
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AFFO Beat and Strong Growth
Third-quarter AFFO per share was $1.15 versus the $1.11 estimate, while AFFO growth was 17.2%.
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Strong Investment Activity
Quarterly investment activity totaled $357.7 million, supporting portfolio expansion and reported AFFO growth.
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Substantial Rate Hedging
Interest-rate hedging covered $350.0 million of the 2029 unsecured term loan at a weighted-average fixed rate of 3.57% and another $350.0 million of the 2031 term loan at 3.22%.
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Limited Near-Term Floating Debt Exposure
The company reported no outstanding balance under either its revolving credit facility or commercial paper notes as of September 30, 2026, and stated that a hypothetical 100-basis-point rate move would have no annual interest-expense impact assuming no change in borrowings.
What to watch
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Long-Dated Debt Refinancing Risk
Senior unsecured notes totaled $3.010 billion, including $50.0 million maturing in 2027, $410.0 million in 2028, $100.0 million in 2029, $475.0 million in 2030 and $1.975 billion thereafter. Refinancing these maturities could expose the company to higher market rates.
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Interest-Rate and Rollover Risk
Although the company hedged $700.0 million of SOFR-based term debt, the revolving credit facility and commercial paper remain variable-rate instruments. The filing states that interest-rate exposure includes rollover risk as borrowings mature and are renewed at current market rates.
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Hedge Counterparty and Accounting Risk
The interest-rate swaps were valued as assets of approximately $8.1 million and $21.5 million, respectively. The company notes risks that swap counterparties may not perform, agreements may be unenforceable, or hedges may fail to qualify as highly effective cash-flow hedges under GAAP.
Management's outlook
The company raised 2026 AFFO per share guidance to $4.58-$4.59 from $4.57-$4.59. These are AFFO-per-share figures, not GAAP EPS; no GAAP EPS guidance was provided.
Earlier filings 1
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