Agree Realty Q2: Growing, Growing, Growing

ADC delivered a strong Q2 with record acquisition activity, robust AFFO growth, and raised guidance across key metrics. ADC leverages a sector-leading cost of capital, maintaining a 150 basis point investment spread and a conservative balance sheet with net debt/EBITDA at 3.7x. External growth is fueled by aggressive equity issuance, but current valuation offers less yield than peers and is comparable to risk-free assets. I maintain a Hold rating on ADC, citing internal execution but awaiting a more attractive valuation relative to peers and risk-free alternatives.

We are heading back to net lease, the beating heart of REITer’s Digest. My REITers know well that I love net lease because it simplifies the real estate model. Growing rent is collected under long term leases