Agree Realty (NYSE:ADC) Issues Earnings Results

Key Points

• Quarterly beat: Agree Realty reported EPS of $0.50 versus a $0.47 consensus and revenue of $211.49M versus $195.73M expected, with a return on equity of 3.79% and a net margin of 28.44%.
• Dividend increase: The company raised its monthly dividend to $0.267 from $0.26 (annualized yield ~4.1%), payable May 14 with an ex-dividend date of April 30, though the payout ratio is elevated at 177.4%.
• Market and analyst backdrop: ADC traded near $78.97 with a $9.48B market cap and a 44.61 P/E; Wall Street consensus is a "Moderate Buy" (average price target $83.81) and institutional ownership stands at 97.83% after several large funds increased holdings.

Agree Realty (NYSE:ADC - Get Free Report) posted its quarterly earnings data on Tuesday. The real estate investment trust reported $0.50 earnings per share for the quarter, topping analysts' consensus estimates of $0.47 by $0.03, FiscalAI reports. Agree Realty had a return on equity of 3.79% and a net margin of 28.44%.The company had revenue of $211.49 million during the quarter, compared to analysts' expectations of $195.73 million.

Agree Realty Price Performance

ADC stock traded down $0.59 during midday trading on Tuesday, hitting $78.97. 841,961 shares of the stock were exchanged, compared to its average volume of 1,295,932. The stock's 50-day moving average price is $78.12 and its 200-day moving average price is $74.74. The stock has a market cap of $9.48 billion, a price-to-earnings ratio of 44.61, a PEG ratio of 2.68 and a beta of 0.53. Agree Realty has a fifty-two week low of $69.56 and a fifty-two week high of $82.08. The company has a debt-to-equity ratio of 0.54, a quick ratio of 0.81 and a current ratio of 0.81.

Agree Realty Increases Dividend

The company also recently disclosed a monthly dividend, which will be paid on Thursday, May 14th. Investors of record on Thursday, April 30th will be issued a dividend of $0.267 per share. This is a boost from Agree Realty's previous monthly dividend of $0.26. This represents a c) annualized dividend and a yield of 4.1%. The ex-dividend date of this dividend is Thursday, April 30th. Agree Realty's payout ratio is presently 177.40%.

Hedge Funds Weigh In On Agree Realty

Several hedge funds and other institutional investors have recently bought and sold shares of ADC. JPMorgan Chase & Co. raised its holdings in Agree Realty by 41.0% during the fourth quarter. JPMorgan Chase & Co. now owns 2,843,441 shares of the real estate investment trust's stock worth $204,813,000 after purchasing an additional 826,719 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in Agree Realty by 532.1% during the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 714,772 shares of the real estate investment trust's stock worth $50,777,000 after purchasing an additional 601,689 shares during the last quarter. Balyasny Asset Management L.P. raised its holdings in Agree Realty by 31.8% during the third quarter. Balyasny Asset Management L.P. now owns 1,627,883 shares of the real estate investment trust's stock worth $115,645,000 after purchasing an additional 392,400 shares during the last quarter. State Street Corp raised its holdings in Agree Realty by 7.1% during the second quarter. State Street Corp now owns 5,764,979 shares of the real estate investment trust's stock worth $422,629,000 after purchasing an additional 381,438 shares during the last quarter. Finally, Freestone Grove Partners LP raised its holdings in Agree Realty by 117.3% during the fourth quarter. Freestone Grove Partners LP now owns 635,736 shares of the real estate investment trust's stock worth $45,792,000 after purchasing an additional 343,240 shares during the last quarter. 97.83% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of analysts have weighed in on ADC shares. Raymond James Financial increased their price objective on Agree Realty from $84.00 to $90.00 and gave the stock a "strong-buy" rating in a research report on Tuesday, March 17th. Weiss Ratings raised Agree Realty from a "hold (c+)" rating to a "buy (b-)" rating in a report on Monday, April 6th. Truist Financial raised their price target on Agree Realty from $79.00 to $82.00 and gave the company a "buy" rating in a report on Monday, March 23rd. Mizuho raised their price target on Agree Realty from $75.00 to $86.00 and gave the company a "neutral" rating in a report on Wednesday, March 11th. Finally, BMO Capital Markets cut Agree Realty from an "outperform" rating to a "market perform" rating and set a $86.00 price target for the company. in a report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and six have given a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $83.81.

About Agree Realty

Agree Realty Corporation NYSE: ADC is a publicly traded real estate investment trust headquartered in Chicago, Illinois. Founded in 1971, the company converted to a REIT structure in 2013 and focuses on acquiring, developing and managing a diversified portfolio of retail properties under long-term, triple-net (NNN) leases. Its tenant roster spans national and regional retailers in sectors such as grocery, home improvement, convenience and specialty retail.

Agree Realty's primary business activities include sourcing and underwriting new property acquisitions, originating build-to-suit projects and executing value-add redevelopment programs.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.