ADC - Investment Spread And NAVPS Suggest Agree Is Fairly Valued
2024-04-15 11:54:13 ET
Summary
- The current investment spread of Agree is about 75 basis points which is just at the border of being accretive for Agree.
- Using net asset value per share, Agree's stock is trading at a slight premium which suggests limited upside from here.
- These two metrics support a "hold" recommendation. Investors should wait until investment spreads widen.
Introduction
On June 30, 2023, we published a comparative article between Spirit Realty and Agree Realty Corporation ( ADC ) and supported a “buy” recommendation for both equities. In this article, we are going to review the underpinnings of Agree’s business model in light of Q4 2023 earnings and justify a change in the recommendation to a “hold”....
Investment Spread And NAVPS Suggest Agree Is Fairly Valued