WPC - Agree Realty Q1: Who Cares About Lower Interest Rates When You Can Collect 9% While You Wait
2024-04-27 07:00:00 ET
Summary
- Agree Realty reported Q1 earnings and delivered a beat on AFFO and revenue, with both growing year-over-year.
- ADC delivered AFFO guidance of $4.10 - $4.13 for the first time, representing a growth rate of 4% year-over-year.
- Investors collect a 5% dividend yield coupled with 4% growth, offering a total growth rate of 9% for those willing to hold until interest rates are lowered.
- Q1 earnings showed that interest rates have impacted REITs with Agree Realty delivering acquisition guidance of $600 million for the year, much lower than the $1.3 billion for the company in 2023.
- Agree Realty's balance sheet puts them in a strong financial position with no debt maturities until 2028 and approximately $100 million in free cash flow after dividends.
Introduction
Since starting here on Seeking Alpha roughly a year ago, I've been beating the drum on Agree Realty ( ADC ). In my opinion, they are one of the best net lease REITs in the retail space for reasons I'll share later in this article. And I've been buying shares in the company over the past 2 years while interest rates remain elevated, placing downward pressure on the share price in the process....
Agree Realty Q1: Who Cares About Lower Interest Rates When You Can Collect 9% While You Wait