NTST - Agree Realty Q1 Earnings: Key Takeaways That Earn The Stock A Strong Buy
2024-04-24 12:45:47 ET
Summary
- Agree Realty is a single tenant net lease REIT focused on "next generation" retail assets and ground leases.
- ADC reported strong first quarter earnings, with AFFO per share growth beating expectations and outpacing key competitors.
- The company continues taking a tactical approach to acquisitions and dispositions and maintaining a conservative financial position during a tumultuous time for net lease assets.
- We explore first quarter earnings and discuss three key takeaways that earn ADC a "Strong Buy."
Agree Realty Overview
Let's set the stage appropriately before diving into recent financials. The net lease sector is deep and growing rapidly. As the sector grows, net lease REITs of all shapes and sizes have appeared. Each carries a unique value proposition and business model that management believes will deliver success to shareholders. There is even a net lease exchange-traded fund called the Fundamental Income Net Lease Real Estate ETF (NETL), which today holds 21 net lease-specific stocks.
As the sector grows in both quality and quantity, the list of names continues to expand. The sector keeps on growing, but few REITs have been as successful as Agree Realty Corporation (ADC). ADC is a net lease REIT focused on the acquisition and development of "next generation" retail assets. In this context, "next generation" refers to e-commerce resistant retail subcategories such as grocery, home improvement, and tire/automotive service. ADC is a monthly dividend payer, with an impressive history of consistent dividend growth....
Agree Realty Q1 Earnings: Key Takeaways That Earn The Stock A Strong Buy