ADC NYSE Earnings call
AGREE Realty Corp. (ADC) · Q2 2026 results and valuation
Share price: $69.80 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 31 Jul 2026 and 22 Apr 2026
Net income down 12.2% on the previous quarter, guidance raised. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
−12.2%
Net income vs Q1 2026
Guidance raised
Net income 54.7M vs 62.2M
Revenue +2.1%
Against the same quarter last year (Q2 2025) it is +11.1%, so the move on last quarter looks seasonal or timing-related rather than a trend.
2 · How management spoke
Typical
Less upbeat than 57% of company calls
Answers to analysts: restrained, in line with the script.
Similar to last call.
3 · What stood out
Key theme
ADC invested a company record $500 million across its three external growth platforms, marking what it called the highest-quality quarter in company…
Valuation
Is AGREE Realty Corp. undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 18.7% growth a year (3-year revenue growth), the model's fair value is $166.55 a share — the stock trades 58% below it. Today's price assumes 8.3% growth a year.
Current price
$69.80
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+8.3% for 10 yrs
Fair value / share
$166.55
Buy below
$124.91
Price vs fair value
Undervalued 58%
Price vs buy-below price
Undervalued 44%
Read between the lines
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Guidance ↑
ADC raised its earnings guidance, driven by higher investment activity and continued strong portfolio performance.
Source quote
“The increase in our earnings guidance is driven by higher investment activity as well as the continued strong performance of our portfolio.”
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Guidance
ADC now expects free cash flow after the dividend to exceed $140 million this year, leaving more cash for shareholder returns.
Source quote
“In addition, we anticipate free cash flow after the dividend to exceed $140 million this year.”
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Figure
Given the progress achieved year to date, Agree Realty's occupancy ticked up 10 basis points sequentially to match another company record…
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Fading
ADC drew $250 million on its delayed draw term loan and added $50 million in forward starting swaps to hedge interest rate volatility.
Source quote
“As a reminder, we entered into forward starting swaps to fix SOFR through maturity in 2031 and inclusive of those swaps... Additionally, during the period, we drew $250 million on our previously announced $350 million delayed draw term loan. We also took further steps to hedge against interest rate volatility, entering into $50 million of forward starting swaps during the quarter.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Our balance sheet is extremely well positioned to fund our growth in the next year, as we have locked in an attractive cost of capital with an expansive opportunity set...”
“You combine that with lean based processes and with systems that are constantly improving there are tremendous opportunities for efficient Our COO, Nicole, would have really runs that side of...”
“Constructing a retail net lease leader with multiple growth frontiers wholly focused on a distinct sandbox of the country's best retailers, was the ultimate goal.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 205.1M | 200.8M | +2.1% | 175.5M | +16.8% |
| Operating income | 95.3M | 98.6M | −3.3% | 82.0M | +16.2% |
| Net income | 54.7M | 62.2M | −12.2% | 49.2M | +11.1% |
| EPS | 0.44 | 0.50 | −12.0% | 0.43 | +2.3% |
| P/E today 35.3 | 40.7 | 40.7 | +0.0 | 43.5 | −2.8 |
Topics
Most discussed now
- This translates to nearly 6% AFFO per share growth at the midpoint and underscores what has long differentiated ADC.
- Looking at the back half of the year, there is no material exposure or tenants that Agree Realty has identified that...
- New You combine that with lean based processes and with systems that are constantly improving there are tremendous opportunities for…
- Agree Realty is in a tremendous position right now, and I am excited about the initiatives it mentioned in the prepared...
Faded since Q1 2026
- Dropped Agree Realty is consistently seeing leading retailers with the balance sheet and operating discipline winning across cycles and expanding…
- Dropped 7-Eleven is just a proxy here for the broader gas station convenience store space.
- Fading Agree Realty has married this fortress balance sheet with the highest quality retail portfolio in the country that only continues to...
- Fading At quarter end, Agree Realty had approximately 18.4 million shares of outstanding forward equity, which are anticipated to raise net…
Latest announcements
Official filings, newest first.
- Other events · SEC 8-K
- Material agreement; New financial obligation; Other events · SEC 8-K
- Results of operations · SEC 8-K
- Other events · SEC 8-K
- Shareholder vote results · SEC 8-K
- Other events · SEC 8-K
- Results of operations · SEC 8-K
- Other events · SEC 8-K