ADC - Agree Realty: Patience Is Key To Unlocking Its Recovery

2024-02-09 08:30:07 ET

Summary

• Agree Realty Corporation investors have experienced a significant battering, but a mean-reversion opportunity could emerge.
• ADC bottomed out in October 2023, but its recovery has hit a snag, as the Fed isn't expected to cut rates.
• Despite a challenging investment environment, ADC's AFFO growth profile in 2024 is promising in driving a valuation re-rating.
• Patience is critical as the market assesses the timing of the Fed's rate cuts.
• I explain the critical levels for investors to consider as I maintain my bullish bias.

Agree Realty Corporation ( ADC ) investors have had a year to forget, as ADC posted a 1Y total return of -17.4%, a significant deviation from its 10Y total return CAGR of 12.19%. As a result, ADC bulls could point to the potential for a significant mean-reversion opportunity for the leading net lease retail REIT as we emerge from the Fed's hiking regime....

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