Agree Realty initiated with a Neutral at UBS

UBS initiated coverage of Agree Realty with a Neutral rating and $60 price target. The firm has a cautious stance on the triple net lease real estate investment trust group, saying external growth opportunities will remain limited into 2025, which should weigh on funds from operations growth. Currently, the elevated 10-year yield has created a challenging acquisition environment with a lack of available deals at accretive cap rates, the analyst tells investors in a research note. The firm’s constructive view on Realty Income (O) and Essential Properties Realty Trust (EPRT) is based on visibility into leverage-neutral investments and accretive spreads.