Citizens JMP Reiterates Market Perform Rating on Agree Realty (ADC)

Citizens JMP analyst Mitch Germain reiterated a Market Perform rating on Agree Realty (NYSE: ADC).

The analyst commented, “ADC stands as a sector favorite, as management’s adept balance sheet management, with 2025 deployment effectively pre-funded, has enabled the company to continue its aggressive deployment posture; the company is guiding to $1.4B at the midpoint, which represents almost 50% Y/Y growth. In addition to its vast pool of forward equity, the company has some rate swaps in place for future notes issuance, offering clarity on its cost of capital, something other REIT management teams struggle to calculate within the volatile backdrop. The balance sheet, operating portfolio with high levels of investment-grade tenant exposure, and above-average earnings growth potential are positive standouts. Shares are up 13% on the year, outpacing the REIT sector, which posted a 3% decline (MSCI REIT), while the multiple is full in our view, with the stock trading at mid-18x 2025E AFFO/share. This represents a five-turn premium to the net-lease sector, compared to a historical premium of 2-3 turns, suggesting fair valuation.”

For an analyst ratings summary and ratings history on Agree Realty click here. For more ratings news on Agree Realty click here.

Shares of Agree Realty closed at $79.12 yesterday.

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