Tue, Apr 22, 8:06 PM (23 days ago)
**Agree Realty Corporation (ADC) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $169.1M (Q1 2025) vs. $149.4M (Q1 2024), +13% YoY. - **Net Income:** $47.1M (Q1 2025) vs. $45.0M (Q1 2024), +5% YoY. - **EPS:** $0.42 (Q1 2025) vs. $0.43 (Q1 2024). - **Profit Margins:** Improved due to increased rental income and controlled expenses. - **Cash Flow:** Positive operating cash flow, with investing activities showing higher outflows due to acquisitions and development. **Key Metrics & Trends:** - **Rental Income:** Increased by $19.7M, driven by property acquisitions. - **Expenses:** Real estate taxes, property operating expenses, and depreciation increased due to a larger portfolio. - **Interest Expense:** Increased by $6.3M, due to higher borrowings for acquisitions. - **Impairment:** $4.3M provision for impairment, comparable to Q1 2024. - **Gain on Sale:** $0.8M gain on one asset sale, compared to $2.1M gain on six assets in Q1 2024. **Quarterly Performance & Future Operations:** - **Acquisitions:** 46 properties acquired for $358.2M, with a weighted average lease term of 13.4 years. - **Development:** 6 projects completed, 18 under construction. - **Dispositions:** 1 property sold for $2.4M, with a $0.8M gain. - **Liquidity:** $1.86B in liquidity, including cash, unsettled forward equity, and revolving credit facility availability. - **Debt:** Total debt of $2.98B, with a debt-to-enterprise value ratio of 25.5%. **Uncertainties & Risks:** - **Macroeconomic Conditions:** Inflation, pandemics, and other factors may impact financial condition and tenant performance. - **Interest Rates:** Variable rate debt exposes the company to interest rate fluctuations. - **Tenant Risks:** Financial failure or default by tenants could lead to vacancies and loss of income. - **Regulatory Risks:** Changes in laws governing REITs could impact operations and distributions. **Future Outlook:** - ADC aims to continue growth through strategic acquisitions, development, and effective management of its retail property portfolio. - The company will focus on maintaining a strong balance sheet, managing interest rate risks, and ensuring compliance with debt covenants. - ADC will also monitor macroeconomic trends and tenant performance to mitigate potential risks and uncertainties.