Investment Thesis
Agree Realty demonstrates solid operational profitability with a 47.4% operating margin and strong interest coverage of 13.9x, indicating healthy debt servicing capability. However, negative free cash flow of -$370.4M coupled with capital expenditures exceeding operating cash flow by $370.4M raises concerns about capital intensity and cash generation sustainability despite healthy net income.
ADC-PA Strengths
- Strong operating margin of 47.4% demonstrates efficient operational management
- Robust interest coverage ratio of 13.9x indicates strong ability to service debt obligations
- Moderate leverage with debt-to-equity of 0.53x provides financial flexibility
- Solid net income growth of 3.8% YoY despite flat revenue growth shows operational leverage
ADC-PA Risks
- Severe negative free cash flow of -$370.4M indicates capital expenditures significantly exceed operating cash flow, raising sustainability concerns
- Low liquidity with only $16.3M in cash against $3.3B long-term debt creates refinancing risk
- Poor return on equity of 3.3% and return on assets of 2.1% suggest inefficient capital deployment
- Revenue flatness (0.0% YoY) combined with heavy capex spending indicates potential margin pressure ahead
Key Metrics to Watch
- Operating cash flow trends and ability to cover capital expenditures organically
- Debt service coverage ratio and refinancing activities
- Revenue growth acceleration and property portfolio performance
- Capital expenditure levels and ROA improvement trajectory
ADC-PA Financial Metrics
ADC-PA Profitability Ratios
ADC-PA Balance Sheet & Liquidity
ADC-PA 5-Year Financial Trend
5-Year Trend Summary: AGREE REALTY CORP's revenue has grown significantly by 112% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.70 reflects profitable operations.
ADC-PA Growth Metrics (YoY)
ADC-PA Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $154.3M | $44.4M | $0.42 |
| Q2 2025 | $152.4M | $49.2M | $0.43 |
| Q1 2025 | $149.4M | $44.9M | $0.42 |
| Q3 2024 | $136.8M | $41.5M | $0.41 |
| Q2 2024 | $129.9M | $40.9M | $0.42 |
| Q1 2024 | $126.6M | $41.6M | $0.43 |
| Q3 2023 | $110.0M | $39.4M | $0.41 |
| Q2 2023 | $104.8M | $36.0M | $0.42 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ADC-PA Capital Allocation
ADC-PA SEC Filings
Access official SEC EDGAR filings for AGREE REALTY CORP (CIK: 0000917251)