Stock in the Trader’s Radar- Agree Realty Corporation (NYSE:ADC)

On Thursday, Agree Realty Corporation (NYSE:ADC) started its trading session with the price $45.26 and closed at price of $45.92 by scoring 1.91%. Day range of the stock was $45.13 – $45.92. ADC stock traded with total volume of 187722 shares while the average trading capacity remained 190401 shares.  Earnings per share was $2.05. ADC has total market capitalization of $1341591595.

Agree Realty Corporation (NYSE:ADC) today announced results for the quarter and full year ended December 31, 2017.  All per share amounts included herein are on a diluted per common share basis unless otherwise stated.

Full Year 2017 Financial and Operating Highlights:

  • Invested $393.7 million in 90 retail net lease properties
  • Commenced seven development and Partner Capital Solutions (“PCS”) projects
  • Increased rental revenue 25.0% to $105.3 million
  • Net Income per share attributable to the Company increased 5.9% to $2.08
  • Net Income attributable to the Company increased 28.8% to $58.1 million
  • Increased Funds from Operations (“FFO”) per share 7.1% to $2.72
  • Increased FFO 28.9% to $76.3 million
  • Increased Adjusted Funds from Operations (“AFFO”) per share 7.8% to $2.70
  • Increased AFFO 29.7% to $75.7 million
  • Declared dividends of $2.025 per share, an increase of 5.5% over the dividends per share declared in 2016
  • Raised $229.1 million in gross proceeds from the issuance of 4.8 million common shares
  • Sector-leading balance sheet at 4.3 times net debt to recurring EBITDA

Fourth Quarter 2017 Financial and Operating Highlights:

  • Invested $113.6 million in 25 retail net lease properties
  • Commenced two development and PCS projects
  • Increased rental revenue 22.5% to $28.6 million
  • Net Income per share attributable to the Company increased 10.6% to $0.55
  • Net Income attributable to the Company increased 29.5% to $16.5 million
  • Increased FFO per share 10.9% to $0.71
  • Increased FFO 28.7% to $21.3 million
  • Increased AFFO per share 11.4% to $0.70
  • Increased AFFO 29.2% to $20.9 million
  • Declared a quarterly dividend of $0.520 per share, a 5.1% increase over the dividend per share declared in the fourth quarter of 2016
  • Raised $87.1 million in gross proceeds from the issuance of 1.8 million common shares

Financial Results

Total Rental Revenue

Total rental revenue, which includes minimum rents and percentage rents, for the three months ended December 31, 2017 increased 22.5% to $28.6 million, compared to total rental revenue of $23.3 million for the comparable period in 2016.

Total rental revenue for the year ended December 31, 2017 increased 25.0% to $105.3 million, compared to total rental revenue of $84.2 million for the comparable period in 2016.

Net Income

Net Income attributable to the Company for the three months ended December 31, 2017 increased 29.5% to $16.5 million, compared to $12.7 million for the comparable period in 2016. Net Income per share attributable to the Company for the three months ended December 31, 2017 increased 10.6% to $0.55, compared to $0.50 per share for the comparable period in 2016.

Net Income attributable to the Company for the year ended December 31, 2017 increased 28.8% to $58.1 million, compared to $45.1 million for the comparable period in 2016.  Net Income per share attributable to the Company for the year ended December 31, 2017 increased 5.9% to $2.08, compared to $1.97 per share for the comparable period in 2016.

Funds from Operations

FFO for the three months ended December 31, 2017 increased 28.7% to $21.3 million, compared to FFO of $16.6 million for the comparable period in 2016.  FFO per share for the three months ended December 31, 2017 increased 10.9% to $0.71, compared to FFO per share of $0.64 for the comparable period in 2016.

FFO for the year ended December 31, 2017 increased 28.9% to $76.3 million, compared to FFO of $59.2 million for the comparable period in 2016.  FFO per share for the year ended December 31, 2017 increased 7.1% to $2.72, compared to FFO per share of $2.54 for the comparable period in 2016.

Adjusted Funds from Operations

AFFO for the three months ended December 31, 2017 increased 29.2% to $20.9 million, compared to AFFO of $16.2 million for the comparable period in 2016.  AFFO per share for the three months ended December 31, 2017 increased 11.4% to $0.70, compared to AFFO per share of $0.63 for the comparable period in 2016.

AFFO for the year ended December 31, 2017 increased 29.7% to $75.7 million, compared to AFFO of $58.4 million for the comparable period in 2016.  AFFO per share for the year ended December 31, 2017 increased 7.8% to $2.70, compared to AFFO per share of $2.51 for the comparable period in 2016.

Dividend

The Company paid a cash dividend of $0.520 per share on January 3, 2018 to stockholders of record on December 20, 2017, a 5.1% increase over the $0.495 quarterly dividend declared in the fourth quarter of 2016.  The quarterly dividend represents payout ratios of approximately 73.1% of FFO per share and 74.5% of AFFO per share, respectively.

For the year ended December 31, 2017, the Company declared dividends of $2.025 per share, a 5.5% increase over the dividends of $1.92 per share declared in 2016. The annual dividend represents payout ratios of approximately 74.5% of FFO per share and 75.0% of AFFO per share, respectively.

Remarks of Chief Executive Officer

Joey Agree, President and Chief Executive Officer of Agree Realty Corporation commented “We are extremely pleased with our performance in 2017 as we continued to execute across all phases of our business, further strengthening our portfolio with a number of industry-leading tenants”. “Our differentiated investment strategy and fortified balance sheet position us to continue delivering strong results in the upcoming year.”

Warren Becky

Warren Becky

Warren Becky joined us, after more than 10 years of experience in writing financial and business news, most recently as Investment Editor and writer. He also has a vast knowledge of stock trading. He earned bachelor degree from Union College with a focus in Business Administration. Warren is the Senior Editor and market movers section. He also holds an MBA from Penn State University. He has two daughter and two children. Address: 2129 Maud Street, ESKO, Minnesota Email: Warrenbecky@stocksgeeks.com Zip Code: 55733 Contact number: 302-722-7537

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