Agree Realty Q2 2026 Results: Record $502M Investment, AFFO Rises 7.4%, Guidance Raised
Agree Realty Corporation reported record second-quarter 2026 results, investing approximately $502 million in 102 retail net lease properties. AFFO per share rose 7.4% to $1.14, Core FFO per share increased 7.5% to $1.13, and total revenues reached $205.100 million. The company raised full-year 2026 investment guidance to $1.6–$1.8 billion and AFFO per share guidance to $4.57–$4.59, supported by $1.9 billion in liquidity and a proforma net debt to recurring EBITDA of 3.7 times.
*this image is generated using AI for illustrative purposes only.
Agree Realty Corporation delivered a record-breaking second quarter, investing approximately $502 million in 102 retail net lease properties — the most active investment quarter in company history. The real estate investment trust reported Adjusted Funds from Operations (AFFO) per share of $1.14, up 7.4% from $1.06 in the comparable prior-year period, while Core Funds from Operations (Core FFO) per share rose 7.5% to $1.13 from $1.05. Net Income attributable to common stockholders increased 2.2% to $0.44 per share. Total revenues for the quarter reached $205.100 million, with rental income of $204.981 million compared to $175.397 million in the prior-year period.
Q2 2026 Financial Performance
The following table summarizes key financial metrics for the second quarter and first half of 2026:
| Metric: | Q2 2026 | Q2 2025 | H1 2026 | H1 2025 |
|---|---|---|---|---|
| Net Income (total, $M): | $52.8 | $47.3 | $113.0 | $92.5 |
| Net Income per share: | $0.44 | $0.43 | $0.94 | $0.85 |
| Core FFO ($M): | $136.0 | $115.9 | $272.4 | $228.6 |
| Core FFO per share: | $1.13 | $1.05 | $2.25 | $2.09 |
| AFFO ($M): | $138.0 | $117.7 | $275.6 | $231.6 |
| AFFO per share: | $1.14 | $1.06 | $2.28 | $2.12 |
| Total Revenues ($M): | $205.10 | $175.53 | $405.91 | $344.69 |
For the six months ended June 30, 2026, the company invested a record approximately $925 million in 187 retail net lease properties, with Core FFO per share up 7.8% and AFFO per share up 7.7% year over year. The company ended the first half with approximately $1.9 billion of liquidity.
Dividends
In the second quarter, the company declared monthly cash dividends of $0.267 per common share for each of April, May, and June 2026, reflecting an annualized dividend amount of $3.204 per common share — a 4.3% increase over the annualized amount of $3.072 from the second quarter of 2025. Dividends represent payout ratios of approximately 71% of Core FFO per share and 70% of AFFO per share. For the six months ended June 30, 2026, dividends totaled $1.587 per common share, a 3.9% increase over the $1.527 declared in the comparable prior-year period. Subsequent to quarter end, the company declared a monthly cash dividend of $0.267 per common share for July 2026, payable on August 14, 2026 to stockholders of record at the close of business on July 31, 2026.
Portfolio and Investment Activity
As of June 30, 2026, the company's portfolio consisted of 2,825 properties located in all 50 states and the District of Columbia, comprising approximately 59.6 million square feet of gross leasable area. The portfolio was approximately 99.8% leased, had a weighted-average lease term of approximately 7.7 years, and generated approximately 65.8% of annualized base rents from investment grade retail tenants.
The following table summarizes Q2 2026 and first-half 2026 investment and disposition activity:
| Activity: | Q2 2026 | H1 2026 |
|---|---|---|
| Total Investment Volume: | ~$502M (102 properties) | ~$925M (187 properties) |
| Acquisition Volume: | ~$451.5M (82 properties) | ~$854.0M (167 properties) |
| Weighted-Avg Cap Rate (Acquisitions): | 7.0% | 7.0% |
| Weighted-Avg Lease Term (Acquisitions): | ~11.2 years | ~11.2 years |
| Ground Leases Acquired: | ~$66.6M (9 leases) | — |
| Disposition Volume: | ~$30.3M (14 properties) | ~$40.9M (21 properties) |
| Weighted-Avg Cap Rate (Dispositions): | 7.1% | 7.0% |
During the second quarter, the company commenced five development or Developer Funding Platform (DFP) projects with total anticipated costs of approximately $87.5 million. For the six months ended June 30, 2026, the company had 20 development or DFP projects completed or under construction with anticipated total costs of approximately $199.9 million, leased to leading retailers including 7-Eleven, TJX Companies, Burlington, Boot Barn, Gerber Collision, Starbucks, and Sunbelt Rentals. The company also executed new leases, extensions, or options on approximately 763,000 square feet of gross leasable area during the quarter, including a 130,000-square foot Sam's Club in Timonium, Maryland and a 150,000-square foot Walmart Supercenter in Perry, Georgia.
Capital Markets, Liquidity and Balance Sheet
As of June 30, 2026, the company had total liquidity of approximately $1.9 billion, comprising $753.0 million of availability under its revolving credit facility, $1.1 billion of outstanding forward equity, and $21.2 million of cash on hand. The company's net debt to recurring EBITDA was 5.2 times, while proforma net debt to recurring EBITDA — deducting $1.1 billion of anticipated net proceeds from outstanding forward equity offerings — was 3.7 times. The fixed charge coverage ratio was 4.1 times at quarter end, and net debt to enterprise value was 28.5%. During the second quarter, the company settled 4.3 million shares of outstanding forward equity for net proceeds of approximately $313.3 million, and entered into new forward sale agreements for anticipated net proceeds of $31.1 million.
In June 2026, the company drew the remaining $100.0 million under its $350.0 million unsecured term loan maturing in May 2031, with an all-in interest rate fixed at 4.02% until maturity. Total assets stood at $10,586.829 million as of June 30, 2026, compared to $9,797.612 million as of December 31, 2025.
Updated 2026 Guidance
Following the record first-half performance, the company raised its full-year 2026 guidance. The table below presents prior and revised guidance estimates:
| Metric: | Prior 2026 Guidance | Revised 2026 Guidance |
|---|---|---|
| AFFO per share: | $4.54 to $4.58 | $4.57 to $4.59 |
| Investment Volume: | $1.4 to $1.6 billion | $1.6 to $1.8 billion |
| Disposition Volume: | $25 to $75 million | $50 to $100 million |
| G&A Expenses (% of adjusted revenue): | 5.3% to 5.6% | 5.3% to 5.6% |
| Non-reimbursable real estate expenses (% of adjusted revenue): | 1.0% to 1.5% | 1.0% to 1.5% |
| Income and other tax expense: | $2 to $2.5 million | Approximately $2 million |
| Treasury stock method dilution: | $0.02 to $0.04 | $0.02 to $0.04 |
CEO Comments
"We are very pleased with our record performance during the first half of the year, as we posted the most active investment quarter and first half in Company history," said Joey Agree, President and Chief Executive Officer. "With our portfolio continuing to perform exceptionally well, a fortress balance sheet backed by $1.9 billion of liquidity, and robust activity across all three of our external growth platforms, we are increasing full-year 2026 investment guidance to a range of $1.6 billion to $1.8 billion and raising 2026 AFFO per share guidance to a range of $4.57 to $4.59."
How might the company's aggressive $1.6 billion to $1.8 billion investment guidance impact its ability to maintain dividend growth if interest rates remain elevated or retail tenant defaults increase?
Given the 7.0% weighted-average cap rate on acquisitions, what risks does Agree Realty face regarding valuation compression or refinancing costs in the current high-interest-rate environment?
With the proforma net debt to recurring EBITDA ratio at 3.7x after forward equity settlements, how does management plan to sustain this leverage level while pursuing record investment volumes?
16
Access Market Heat-map & Insights 
Create, Save & Share your Screener 
Use 200+ Screening Filters 
