Agree Realty Stock In Spotlight After Firm Guides Higher 2025 Investment Volume: Retail, Wall Street Remain Skeptical

Shares of Agree Realty Corporation (ADC), a publicly traded real estate investment trust, were in the spotlight on Tuesday after it announced a summary of its investment activity in 2024 and disclosed its investment guidance for 2025.

ADC said its total real estate investment volume for 2024, including acquisition, development, and Developer Funding Platform projects completed or currently under construction, amounted to approximately $951 million.

The company acquired 242 retail net lease properties for a total acquisition volume of approximately $867 million. Acquisition volume for the fourth quarter totaled approximately $341 million at a weighted average capitalization rate of 7.3%.

CEO Joey Agree said the firm has fortified its balance sheet by raising approximately $1.1 billion of forward equity and now has a total liquidity of over $2.0 billion. “With a strong pipeline and a fortress balance sheet with no material debt maturities until 2028, we are well positioned to execute irrespective of macro-economic conditions,” he claimed.

ADC expects investment volume in 2025 to rise 26% year-over-year (YoY) to $1.1 billion and $1.3 billion of retail net lease properties. This includes capital deployment through our acquisition, development, and DFP platforms.
Despite the disclosures, retail sentiment on Stocktwits trended in the ‘neutral’ territory (53/100) from ‘extremely bullish’ a week ago. Retail chatter, however, continued to remain high.

ADC’s Sentiment Meter and Message Volume as of 7:51 a.m. ET on Jan. 7, 2025 | Source: Stocktwits

Wall Street, too, isn’t overly bullish on the firm, with two brokerages marginally reducing their price target on the stock.

According to TheFly, Stifel analyst Simon Yarmak lowered the firm's price target on Agree Realty to $81 from $81.50 while keeping a ‘Buy’ rating on the shares.

RBC Capital analyst Brad Heffern also lowered the firm's price target on the stock to $79 from $80 while keeping an ‘Outperform’ rating on the shares.

Notably, ADC stock has gained over 10% over the last year, outperforming the Dow Jones U.S. Real Estate Index, which gained just over 0.5% during the period.

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