Agree Realty (ADC) Q4 2025 Earnings Transcript

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Wed, February 11, 2026 astatine 9:45 AM CST 50 min read

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Wednesday, Feb. 11, 2026 astatine 9:00 a.m. ET

• President and Chief Executive Officer — Joey Agree

• Chief Financial Officer — Peter Coughenour

• Operator

Joey Agree: Thanks, Reuben, and convey you each for joining america this morning. 2025 represented yet different twelvemonth of accordant execution for our increasing company. In a dynamic macro environment, we stay disciplined, continued investing successful our future, and delivered implicit 4.5% AFFO per stock growth. The $1.55 cardinal invested crossed our 3 concern platforms was the second-highest full successful institution history, representing much than 60% year-over-year growth. As demonstrated by our 2026 guidance, the fundamentals supporting our outlook are precise strong. Our portfolio has ne'er been amended positioned, the extent and spot of our squad is exceptional, and our equilibrium expanse is successful tremendous shape.

We person commenced galore IT undertakings, including the operation of the adjacent iteration of ARC, and proceed to thrust efficiencies done systematic process improvement. These initiatives volition enactment bottom-line maturation this twelvemonth and beyond, driven by ongoing ratio gains and a worldly simplification successful G&A arsenic a percent of revenue. During the people of the year, we erstwhile again proactively fortified our equilibrium sheet, raising astir $1.5 cardinal successful capital. We concluded 2025 with implicit $2 cardinal of liquidity, including implicit $715 cardinal of outstanding guardant equity. With nary worldly indebtedness maturities until 2028, our equilibrium expanse is successful tremendous presumption to execute connected our 2026 concern guidance and supply important flexibility.

At year-end, pro forma nett indebtedness to recurring EBITDA stood astatine conscionable 3.8 times, enabling america to execute connected the precocious extremity of our 2026 concern guidance without incremental equity portion staying wrong our targeted leverage scope of 4 to 5 times. Our pipeline has expanded importantly implicit the past period and present represents implicit $500 cardinal and provides america assurance successful expanding our 2026 concern guidance to a scope of $1.4 cardinal to $1.6 billion. Our updated concern guidance represents astir a 10% summation from our anterior range, and the precocious extremity of the scope is somewhat supra our 2025 concern activity. With yesterday's release, we person initiated full-year AFFO per stock guidance of $4.54 to $4.58.

At the midpoint, this represents 5.4% year-over-year maturation and two-year stacked maturation of 10%. When combined with our existent dividend yield, this implies a full operational instrumentality of our people of astir 10%. Combined with the fortress equilibrium sheet, best-in-class portfolio, and historical way grounds of execution, we judge that ADC offers 1 of the astir compelling worth propositions successful the REIT sector. Turning to our 3 outer maturation platforms, our partnerships crossed the existent property spectrum person ne'er been stronger nor much productive. Today, Agree Realty is the preferred one-stop store for the country's largest retailers. These partnerships are translating into actionable opportunities, including one-off acquisitions, sale-leasebacks, blend and widen transactions, programmatic development, and high-quality DFB projects.