How Agree Realty's $1.55B 2025 Investments Shape Its 2026 Outlook

Agree Realty CorporationADC reported strong investment activity in 2025, deploying about $1.55 billion into retail net lease properties across 41 states. This volume encompassed acquisitions, development, and Developer Funding Platform (“DFP”) and included 338 properties net leased to top-tier tenants. 

A significant benefit of this deployment is the reinforcement of Agree Realty’s investment-grade tenant base, with roughly 66.8% of annualized base rent coming from high-credit tenants as of Dec. 31, 2025, enhancing income stability and long-term cash flow.   

During 2025, the company acquired 305 retail net lease properties worth about $1.44 billion at a 7.2% cap rate, with remaining long-lease terms averaging 11.5 years. Around 64.9% of annualized base rents acquired came from investment-grade tenants, helping sustain resilient earnings in a competitive retail environment.  

Agree Realty’s balance sheet strength stands out as another strategic advantage. With more than $2 billion in liquidity, including access to revolving credit and forward equity, the REIT is positioned to capitalize on acquisition and development opportunities in 2026. 

Agree Realty forecasted 2026 investment activity between $1.25 billion and $1.5 billion, supported by its three growth platforms: acquisitions, development, and the DFP. This disciplined approach reflects the company’s focus on high-quality retail tenants and strategic capital allocation. The strong pipeline and conservative balance sheet provide a solid foundation for continued earnings growth this year.

Wrapping Up on ADC

Agree Realty’s 2025 investment activity and 2026 outlook highlight a disciplined approach focused on high-quality retail properties and a strong, flexible balance sheet. With substantial liquidity and targeted deployment plans, the company is well-positioned to sustain its growth trajectory and deliver stable returns for shareholders. Agree Realty’s disciplined capital management, combined with a high percentage of investment-grade rent rolls, should continue to support its competitive stance in the net lease REIT landscape. 

Shares of Agree Realty have risen 1.9% in the past three months against the industry’s decline of 0.9%. Analysts seem bullish on this Zacks Rank #3 (Hold) company. The Zacks Consensus Estimate for its 2025 and 2026 FFO per share has moved marginally northward over the past three months to $4.31 and $4.54, respectively.

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Stocks to Consider

Some better-ranked stocks from the retail REIT sector are Tanger Inc.SKT and Phillips Edison & Company, Inc.PECO. Both Tanger and Phillips Edison carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Tanger’s 2025 FFO per share has been raised marginally over the past two months to $2.28.

The consensus estimate for Phillips Edison & Company’s 2025 FFO per share has been revised upward marginally to $2.59 over the past month.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

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This article originally published on Zacks Investment Research (zacks.com).

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