Agree Realty Corporation (ADC) Earnings

Management highlights

• Executed nearly $425 million investment across three external growth platforms, with $403 million acquisitions being largest quarterly since 2022. • Raised approx $660 million of forward equity via ATM, with $2.3 billion total liquidity and over $1.6 billion of hedge capital. • Sold seven properties for approx $11 million at weighted average cap rate of 6.8%. • Executed new leases, extensions, or options on over 876,000 square feet of gross leaseable area with recapture rate over 104%. • Inaugural financial supplement created providing thorough picture of portfolio and financials

Guidance

• Reiterating full year 2026 AFFO per share guidance of $4.54 to $4.58, implying ~5.4% y-o-y growth at midpoint. • Anticipated Treasury stock method dilution impact of two cents to four cents on full year 2026 AFFO per share, depending on stock price movement. • Anticipate over $140 million in free cash flow after dividend this year, increase of over 10% from last year. • Subsequent to quarter end, announced increased monthly cash dividend of 26.7 cents per common share for April

Segment performance

During the quarter, invested nearly $425 million across three external growth platforms. $403 million of acquisitions completed, largest quarterly since 2022. Raised approx $660 million of forward equity via ATM, now has $2.3 billion total liquidity and over $1.6 billion of hedge capital. Core FFO per share $1.13, up 8.1% y-o-y. AFFO per share $1.14, up 7.9% y-o-y. Recorded approx $2.4 million of percentage rent, up from $1.6 million y-o-y. Declared monthly cash dividends of 26.2 cents per common share for Jan, Feb, Mar, annualized to over $3.14 per share, 3.6% y-o-y increase. Portfolio comprised 2,756 properties, 261 ground leases over 10% of annualized base rent, investment grade exposure over 65%, occupancy 99.7%

Analyst Q&A

• Q: Follow up on investment guidance, expand on pace/size of different pipelines for platforms.

  A: Pipeline across all three platforms very strong, two factors determining pace into Q2: macro environment uncertainty and which transactions decided to pursue. Pipelines extensive across all three platforms with transactions under contract/letter of intent.

• Q: Record $1.4 billion of forward equity outstanding, walk through timing of physical settlement relative to acquisition funding and use of forwards vs term loans.

  A: Still have $100 million capacity on delayed draw term loan at fixed rate. About 18.4 million shares of outstanding forward equity, contract for ~8 million matures this year with chance to settle at or prior to maturity. $250 million of forward starting swaps fixing base rate for future 10-year issuance at 4.1%.

• Q: Talk about Hobby Lobby, what makes them attractive and outlook for craft space.

  A: Hobby Lobby is leader in craft and hobby space, privately held with zero net debt, market leader, eliminated real estate from balance sheet and management responsibilities, tremendous operator and partner. Outlook for craft space is positive with Hobby Lobby as market leader.

• Q: More on development pipeline, any increases in pricing or hesitancy from tenants.

  A: No hesitancy from tenants, conflict in Middle East not changed perspective of brick and mortar retailers. Announced store openings of big retailers show they see store as hub of omni-channel world. Projects have guaranteed maximum price bids, not speculating on land.

• Q: 7-Eleven closing stores, any concerns in portfolio and convenience store outlook.

  A: No concerns in portfolio. 7-Eleven closing stores with roller hot dogs and slurpees, moving to large format convenience stores with extensive food and beverage offerings. Evolution of convenience store business model happening, leading to opportunity for AGRI Realty.

• Q: Credit loss perspective, anticipated closures.

  A: No anticipated closures, all precautionary. Guide on credit loss, supplement buckets credit loss, historical trend shows no material in portfolio this year.

• Q: Yields and deployment timeline on development DST, 250 target.

  A: Intermediate target of $250 million in commencements in ground per year, Q1 generally light, Q2 and Q3 expected to be larger. Team doing great job working with leading retailers and developers.

• Q: Competition and seller behavior, any change due to 10-year volatility.

  A: No causal change seen, funnel bigger than ever across all three platforms, no increased competition.

• Q: Acquisitions of investment-rated tenants, outside of IG credit ratings, other lease economics signs of higher quality.

  A: Investment grade is output, not imputing shadow ratings. Have tremendous operators in portfolio, focus on biggest and best operators, best real estate opportunities.

• Q: Grocery assets vs non-grocery, cap rate trends.

  A: Sold outlots of grocery-anchored portfolio, quickly moved to recycle assets. Cap rates not seen material change in past 18-20 months.

• Q: Tenant ownership by private equity, percentage in portfolio.

  A: 77% of portfolio ABR is publicly traded, remainder private companies including privately held, nonprofit, ESOPs, etc.

• Q: Consumer pull back, tenant sectors concerned.

  A: Not in portfolio, but casual dining and quick service restaurants selling discretionary options are areas to watch, trading down across luxury, experiential, discretionary sectors and necessity-based stuff.

• Q: Cap rates trending, approach to equity issuance.

  A: Cap rates not seen material change in past 18-20 months. Continue to look at all alternatives, but not top of mind with $1.4 billion of forward equity and $2.3 billion of liquidity.

• Q: Yield spread on DFP side and competition on acquisitions.

  A: Development subject to timing and scope, spread 75-150 basis points vs DFP 6-12 months, tighter. Target same tenants through all platforms, difference is time and pricing. Competition easing on acquisitions front.

• Q: Same-store rent growth seasonality.

  A: Seasonality driven by percentage rent in Q1 and underlying lease structure of portfolio, with 91% of leases having fixed rental escalators