EarningsQ2 2026 Earnings Report
MX:ADC Q2 2026 EPS Results
Actual EPS$7.96
Consensus EPS$8.61
Beat/MissMissed by -$0.65
One Year Ago EPS$7.78
MX:ADC Q2 2026 Revenue Results
Actual Revenue$3.71B
Expected Revenue$3.70B
Beat/MissBeat by +$10.33M
YoY Revenue Growth+16.85%
Earnings Announcement Details
QuarterQ2 2026
Date07/30/2026
TimeAfter Close
Conference CallThursday, July 30, 2026
MX:ADC Upcoming Earnings
Agree Realty's next earnings date is estimated for October 20, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:ADC Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented multiple strong operational and financial achievements: record investment activity, robust earnings growth (core FFO +7.5%, AFFO +7.4% YoY), upgraded AFFO guidance (nearly 6% growth), accelerating development/DFP activity, excellent occupancy (99.8%), and a well-hedged, liquid balance sheet. The company has some execution- and market-related watch items — reliance on forward equity settlements for leverage metrics, a modeled (but modest) credit/occupancy loss, elevated near-term ground lease concentration, and general interest rate uncertainty — but management has taken active hedging and liquidity steps to mitigate these risks. Overall, the positive operational momentum, guidance raises, and conservative balance sheet positioning outweigh the manageable risks discussed.Company Guidance
Record Investment Activity
Invested a company record of ~$500 million across 102 properties in Q2, including $451 million of acquisitions across 82 retail net lease assets (highest quarterly activity since COVID). Acquired assets had a weighted average cap rate of 7% and weighted average lease term of 11.2 years. Approximately 13.5% of ABR acquired derived from ground leases and >73% of ABR acquired was to investment grade retailers (up from 60% last quarter).
Raised Full-Year Guidance and AFFO Growth
Updated full-year investment volume guidance to $1.6B–$1.8B (midpoint surpasses last year's investment activity and represents a 24% increase over initial guidance). Raised full-year AFFO per share guidance by $0.02 at the midpoint to $4.57–$4.59, implying nearly 6% AFFO per share growth at the midpoint year over year.
Strong Quarterly Earnings
Core FFO per share of $1.13 in Q2, a 7.5% increase year over year. AFFO per share of $1.14 in Q2, a 7.4% year over year increase.
Development & DFP Acceleration
Company record construction start volume in Q2: 5 projects broke ground (~$88M anticipated costs). Through June 30 commenced >$105M of projects (>3x prior period). 20 projects completed or under construction in H1 representing ~ $200M of committed capital. Progressing toward medium-term objective of $250M annual development/DFP.
Exceptional Portfolio Operating Metrics
Occupancy improved 10 basis points sequentially to a company record of 99.8%. Executed new leases/extensions/options on ~760k sq ft in Q2 (1.6M sq ft in H1) with a recapture rate of ~105%. Portfolio at quarter-end: ~2,830 properties across all 50 states; ground leases comprise >10% of ABR; investment grade exposure ≈ two-thirds of portfolio.
Liquidity and Hedge Positioning
Total capital markets activity YTD >$1B. Ended quarter with ~$1.9B of liquidity (cash, forward equity and revolver availability including >$750M on revolver). Drew remaining $100M on $350M delayed draw term loan swapped at ~4%. Entered $50M additional forward swaps; total $300M forward starting swaps effectively fixing base rate for contemplated 10-year issuance at ~4.1%. Hedge capital (swaps + outstanding forward equity) ≈ $1.4B, providing visibility into medium-term cost of capital.
Conservative Balance Sheet Metrics
Pro forma net debt to recurring EBITDA ~3.7x (assuming settlement of outstanding forward equity); excluding unsettled forward equity net debt to recurring EBITDA 5.2x. Net debt to enterprise value ≈ 29%. Fixed charge coverage ratio 4.1x. No material debt maturities until 2028.
Dividend Increase and Cash Flow
Increased monthly cash dividend to $0.267 per common share (April–June and announced July), equating to an annualized dividend >$3.20 and a 4.3% year over year increase. Dividend payout ratio ~70% of AFFO per share for Q2. Anticipate free cash flow after dividend to exceed $140M this year, a >10% year over year increase.
Strategic, High-Quality Acquisitions
Notable Q2 acquisitions included three Walmart Supercenter ground leases (MO, OH, WI), a Walmart Neighborhood Market (OR), a portfolio of BP-branded travel centers (~$75M, BP NA guaranteed A- credit), and a Home Depot ground lease (NH).
MX:ADC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed