The retail-focused REIT increased its 2026 investment outlook to a range of $1.4 billion to $1.6 billion while issuing initial earnings guidance for the coming year. Performance in 2025 was supported by $1.55 billion in total investments and a 4.6% year-over-year increase in annual adjusted funds from operations per share.
Agree Realty Corporation (NYSE: ADC) reported fourth-quarter and full-year 2025 financial results, highlighted by an upward revision to its 2026 investment guidance and the issuance of initial earnings targets for the upcoming fiscal year. The company invested a total of $1.55 billion across 338 retail net lease properties during 2025. Net income attributable to common stockholders for the full year reached $196.9 million, representing $1.77 per diluted share.
Management Increases 2026 Investment Volume Guidance
Management increased the 2026 investment volume guidance to a range of $1.4 billion to $1.6 billion, up from the previous estimate of $1.25 billion to $1.50 billion issued in January 2026. The company also established initial 2026 Adjusted Funds from Operations (AFFO) per share guidance between $4.54 and $4.58. These projections follow the raising of approximately $1.5 billion in long-term capital through various debt and equity channels during 2025.
Strong 2025 Revenue Growth and AFFO Performance
For the fourth quarter of 2025, AFFO per share rose 6.5% year-over-year to $1.11, while Core Funds from Operations (Core FFO) per share increased 7.3% to $1.10. Quarterly total revenue grew 18.5% to $190.5 million compared to the prior-year period. On a full-year basis, AFFO per share increased 4.6% to $4.33. The company’s balance sheet ended the year with a net debt to recurring EBITDA ratio of 4.9 times, which improves to 3.8 times on a proforma basis when accounting for $716.1 million in anticipated net proceeds from outstanding forward equity.
Omni-Channel Retail Property Strategy
The company’s stated strategy remains focused on the acquisition and development of properties net leased to omni-channel retail tenants. As of December 31, 2025, the portfolio comprised 2,674 properties that were 99.7% leased, with investment-grade tenants generating 66.8% of annualized base rents. Capital allocation is directed through three external growth platforms: acquisitions, development, and the Developer Funding Platform. For 2026, the company expects disposition volume to be between $25 million and $75 million.
Managing Capital Within Current Macroeconomic Environment
Agree Realty’s portfolio is geographically diversified across 50 states, with primary sector concentrations in grocery stores at 10.3%, home improvement at 9.0%, and convenience stores at 7.7%. The weighted-average remaining lease term for the total portfolio was approximately 7.8 years at year-end. To manage its capital structure within the current macroeconomic environment, the company completed a $400 million public bond offering at an all-in rate of 5.35% and secured a $350 million 5.5-year term loan with a fixed rate of 4.02% inclusive of hedging activity.