ADC - Where Will Agree Realty Be in 10 Years?
2024-06-30 04:40:00 ET
Agree Realty (NYSE: ADC) has transformed its business since a single lessee's bankruptcy forced it to cut its dividend in 2011. The real estate investment trust's (REIT's) growth over just the past decade or so has been pivotal in its effort to become a leading name in the net lease niche.
Agree Realty is likely to see more of the same growth over the next decade, but there are some things to consider here before you buy the stock.
To understand just how much Agree has changed over the past decade requires going a little further back, to the 2011 dividend cut. At the start of 2011, Agree owned just 81 properties. Book retailer Borders occupied 13 retail assets and one office property, accounting for a huge 20% of Agree's rent roll. Borders filed for bankruptcy in early 2011. There was no way that Agree could withstand a hit like that without cutting its dividend.
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Where Will Agree Realty Be in 10 Years?