Agree Realty Corp. posted its most active investment quarter in company history, deploying $502 million into 102 retail net lease properties during the second quarter, and raised its full-year 2026 guidance for both earnings and acquisition volume as a result, according to results the company reported July 30.
“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 of the Bloomfield Hills, Mich.-based REIT.
The 102 properties acquired during the quarter carried a weighted-average capitalization rate of 7.0% and a weighted-average lease term of 11.2 years, with investment-grade tenants accounting for 73.2% of annualized base rent on the newly acquired assets. Adjusted funds from operations per share rose 7.4% year over year to $1.14, while core FFO per share increased 7.5% to $1.13. Net income was $52.8 million, or $0.44 per share, up 2.2% from a year earlier, on total revenue of $205.1 million.
Based on that pace, Agree Realty raised its full-year 2026 AFFO guidance to a range of $4.57 to $4.59 per share, up from $4.54 to $4.58 previously, and increased its investment volume guidance to $1.6 billion to $1.8 billion, up from $1.4 billion to $1.6 billion.
As of June 30, Agree Realty’s portfolio spanned 2,825 properties totaling 59.6 million square feet of gross leasable area, with occupancy at 99.8% and a weighted-average remaining lease term of 7.7 years across the full portfolio. Investment-grade tenants made up 65.8% of total annualized base rent, a figure lower than the 73.2% investment-grade share on the quarter’s new acquisitions, suggesting the company has been tilting its recent buying toward higher-credit-quality tenants even as its broader legacy portfolio remains diversified across a wider range of retail operators.
The company also raised its full-year disposition guidance to a range of $50 million to $100 million, up from $25 million to $75 million previously, indicating management expects to recycle more capital out of existing holdings even as it accelerates new acquisitions — a sign of active portfolio management rather than simply adding properties without pruning weaker performers.
The company’s monthly dividend rose to $0.267 per share in the second quarter, a 4.3% increase from a year earlier, equivalent to an annualized $3.204 per share. That represented a core FFO payout ratio of roughly 71% and an AFFO payout ratio of about 70%. Agree Realty ended the quarter with $10.6 billion in total assets, $3.8 billion in total debt, net debt to recurring EBITDA of 5.2 times (3.7 times on a pro forma basis), $1.9 billion in total liquidity and a fixed-charge coverage ratio of 4.1 times.
What it means
The record investment volume and raised guidance are the company’s own reported figures and represent verified quarterly performance rather than RealtyWire’s characterization. Agree Realty’s near-full occupancy and heavy weighting toward investment-grade tenants stand out this earnings season, when results across the commercial real estate sector have been mixed — Blackstone Mortgage Trust, for instance, posted a second-quarter net loss tied to office loan impairments even as net-lease retail landlords like Agree Realty kept expanding. Whether that pace of deployment continues through the back half of 2026 will depend on cap-rate spreads holding at levels the company finds attractive relative to its cost of capital, a dynamic the company did not address beyond its raised full-year investment target.
