Latest news with #JoeyAgree
Globe and Mail
a day ago
- Business
- Globe and Mail
Agree Realty Announces the Addition of Kirk Klatt as Vice President of Leasing
Agree Realty Corporation (NYSE: ADC) (the 'Company') today announced that Kirk Klatt has joined the Company as Vice President of Leasing. Mr. Klatt will be responsible for leading the Company's leasing function and management of key retailer relationships. Mr. Klatt has over 20 years of real estate leasing, acquisition, and operational experience. Previously, he served as Senior Vice President of Real Estate at NETSTREIT Corp. (NYSE: NTST), where he spent approximately 14 years and managed the transaction, leasing, diligence, development and asset management functions. He was one of three members on NTST's Investment Committee. 'I'm extremely pleased to welcome Kirk to our Team,' said Joey Agree, President and Chief Executive Officer. 'His many years of net lease operational and leasing expertise will serve as an additional asset as we continue to scale our portfolio and bolster our strategic relationships.' About Agree Realty Corporation Agree Realty Corporation is a publicly traded real estate investment trust that is RETHINKING RETAIL through the acquisition and development of properties net leased to industry-leading, omni-channel retail tenants. As of June 30, 2025, the Company owned and operated a portfolio of 2,513 properties, located in all 50 states and containing approximately 52.0 million square feet of gross leasable area. The Company's common stock is listed on the New York Stock Exchange under the symbol 'ADC'. For additional information on the Company and RETHINKING RETAIL, please visit
Yahoo
13-02-2025
- Business
- Yahoo
Agree Realty Corp (ADC) Q4 2024 Earnings Call Highlights: Strategic Growth Amid Market Volatility
Liquidity: Over $2 billion, including $920 million of outstanding forward equity. Leverage: 3.3 times pro forma net debt to recurring EBITDA. Investment Activity: $371 million invested in 127 retail net lease properties in Q4 2024. Acquisitions: 98 assets acquired for over $341 million in Q4 2024. Weighted Average Cap Rate: 7.3% for Q4 2024 acquisitions. Weighted Average Lease Term: 12.3 years for Q4 2024 acquisitions. Investment Grade Exposure: 73% of annualized base rents from acquisitions in Q4 2024. Core FFO per Share: $1.02 for Q4 2024; $4.08 for full year 2024. AFFO per Share: $1.04 for Q4 2024; $4.14 for full year 2024. 2025 AFFO Guidance: $4.26 to $4.30 per share, representing approximately 3.5% growth. Dividend: $0.253 per common share monthly, equating to an annualized dividend of $3.04 per share. Portfolio Size: 2,370 properties across all 50 states. Occupancy Rate: 99.6% at year-end 2024. Warning! GuruFocus has detected 9 Warning Signs with ADC. Release Date: February 12, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Agree Realty Corp (NYSE:ADC) maintained strategic discipline and delivered meaningful AFFO per share growth despite market volatility. The company proactively strengthened its balance sheet with $1.1 billion of forward equity, resulting in over $2 billion of liquidity. ADC's investment strategy focuses on high-quality retailers, with 73% of annualized base rents from investment-grade retailers. The company achieved a record year in development and DSP platforms, with 41 projects completed or under construction. ADC's portfolio remains strong with a 99.6% occupancy rate and significant investment-grade exposure. The volatile interest rate environment poses challenges for capital allocation and investment strategies. Seller pricing expectations remain high, complicating acquisition opportunities in a fragmented market. The company faces potential credit loss risks, with 50 basis points of credit loss assumed in 2025 guidance. ADC's forward equity position could lead to treasury stock method dilution if stock prices remain high. The retail sector faces ongoing challenges from tariffs and macroeconomic factors, impacting consumer spending. Q: Can you provide insight into the typical renewal process for ground leases and whether there is significant mark-to-market upside? A: Joey Agree, CEO: There is significant mark-to-market upside. The case study mentioned involved a tenant with no remaining options, initially offering to extend at a flat rate. We had offers significantly higher and required the tenant to sign a new 15-year ground lease at market rates. This is indicative of the potential upside when we regain control of the building. Q: How do you balance the forward equity you have, considering the dividend and interest expenses? A: Joey Agree, CEO: The forward equity's interest effectively nets out the dividend due to higher rates today, resulting in minimal cash drag. The forward equity is a strategic tool for capital allocation, allowing us to execute our investment guidance without raising additional equity. Q: Are you seeing any changes in acquisition cap rates given the current interest rate environment? A: Joey Agree, CEO: Despite volatility in the 10-year Treasury, sellers' pricing expectations remain largely unchanged. We remain disciplined in capital deployment, focusing on appropriate spreads and asset-level pricing. The volatility doesn't help reset pricing expectations in the fragmented net lease space. Q: With investment-grade tenant exposure at an all-time high, do you expect this percentage to increase further? A: Joey Agree, CEO: Investment-grade exposure is an output of our investment strategy. While we focus on the largest and best retailers, some unrated retailers like Burlington are also valuable. The investment-grade percentage may fluctuate based on market conditions and strategic acquisitions. Q: How do you view the sale-leaseback market, and are there opportunities for increased activity? A: Joey Agree, CEO: We've closed several sale-leasebacks with relationship tenants and expect more activity as companies evaluate their capital structures. The market's activity may increase with changes in interest rates and economic conditions, providing opportunities for strategic partnerships. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
