Agree Realty Corporation (NYSE: ADC) has raised its monthly common dividend by 4.3%, signaling confidence in its net-leased retail portfolio’s cash flow stability. The Board of Directors authorized a new monthly cash dividend of $0.267 per common share, elevating the annualized distribution to $3.204 per share. This increase follows the previous annualized rate of $3.072 per share reported in the third quarter of 2025. The move underscores the company’s commitment to returning capital to shareholders amidst its strategy of rethinking retail through omni-channel tenant acquisitions.

The common dividend is payable on September 15, 2026, to stockholders of record as of the close of business on August 31, 2026. Concurrently, the Board authorized a monthly cash dividend on its 4.25% Series A Cumulative Redeemable Preferred Stock. The preferred dividend stands at $0.08854 per depositary share, equivalent to an annualized amount of $1.0625. This preferred payment is scheduled for September 1, 2026, with the record date set for August 21, 2026.

Dividend Details

The increase in the common dividend reflects a modest but consistent growth trajectory for the real estate investment trust. By raising the annualized payout from $3.072 to $3.204, Agree Realty maintains its status as a reliable income generator for investors focused on yield and stability. The preferred dividend remains unchanged, providing a steady baseline return for holders of the 4.25% Series A Cumulative Redeemable Preferred Stock.

Portfolio Overview

As of June 30, 2026, Agree Realty owned and operated a diversified portfolio of 2,825 properties. These assets are located across all 50 states and the District of Columbia, comprising approximately 59.6 million square feet of gross leasable area. The company focuses on properties net leased to industry-leading, omni-channel retail tenants, a strategy designed to mitigate vacancy risk and ensure long-term lease commitments.

What the Numbers Show

The 4.3% year-over-year increase in the annualized common dividend suggests stable occupancy and rent collection metrics within the portfolio. While the absolute increase is modest, it indicates that management views the current cash flow generation as sufficient to support higher distributions without compromising balance sheet strength. The simultaneous maintenance of the preferred dividend highlights a disciplined approach to capital allocation, prioritizing both equity and preferred shareholders while navigating the broader retail real estate landscape.

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:

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:

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:

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."