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Agree Realty Continues To Go Above And Beyond

May 06, 2021 9:30 AM ETAgree Realty Corporation (ADC)24 Comments


  • ADC continues to not only grow at a rapid clip but also to innovate, building out systems and processes by which it can efficiently manage a much larger portfolio.
  • The REIT recently revealed its proprietary acquisitions and portfolio management system, called "ARC."
  • Ultra-conservative ground leases continue to make up a larger and larger portion of the portfolio.
  • Over two-thirds of the portfolio is leased to investment grade retailers.
  • ADC is a wonderful company trading at a fair (or maybe better than fair) price.
  • Looking for a helping hand in the market? Members of High Yield Landlord get exclusive ideas and guidance to navigate any climate. Learn More »

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Photo by AaronAmat/iStock via Getty Images

This article was amended on 5/6/2021 to include new information on a recently announced public bond offering.

Thesis: Wonderful Company At A Fair Price

Most of us are probably familiar with the Warren

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This article was written by

Austin Rogers profile picture

I write about high-quality dividend growth stocks with the goal of generating the safest, largest, and fastest growing passive income stream possible. My style might be called "Quality at a Reasonable Price" (QARP) in service to the larger strategy of low-risk, low-maintenance, low-turnover dividend growth investing. Since my ideal holding period is "lifelong," my focus is on portfolio income growth rather than total returns.

My background and previous work experience is in commercial real estate, which is why I tend to heavily focus on real estate investment trusts ("REITs"). Currently, I write for the investing group, High Yield Landlord.

Analyst’s Disclosure: I am/we are long ADC. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (24)

Wow you lost 1 years worth of dividends today!
@Fred Ziffel hey there he is—the guy trashing AVB in other thread. I bought when you were trashing, up 40% and collecting 5% yoc
@Fred Ziffel also i bought ADC as a bond substitute a while ago. Up over 15% not including monthly dividends. Does that make me a bag holder?
Looks like I need to start buying up land too.
Steve Rasher profile picture
@Cashflow Capitalist Thanks for the article. It is certainly nice to see $ADC starting to get the recognition it deserves. I have owned it since 2013, and have followed how Joey Agree and his team have transformed the company after taking over from his father, Richard. $ADC, in my view, is clearly one of the top triple net eREITs, well deserving to be mentioned in the same class as $O and $WPC. The latest bond issuance is just another example of how well managed the company is. Converting to a nice monthly dividend is just icing on the cake. Steve
Austin Rogers profile picture
@Steve Rasher As I've stated before, I really wish I would've known about ADC back in 2013!
Allen Greathouse profile picture
$ADC and $SAFE are my two favorite REITS, ground leases are basically gold that cashflows. $ADC is seriously growing that part of their portfolio, if they continue at this rate there might be a lucrative spinoff down the line 💰
Austin Rogers profile picture
@John Greathouse Based on how SAFE's stock has performed, I hope they do spin off the ground leases, eventually. But not yet. Let me accumulate some more shares first :)
Allen Greathouse profile picture
@Cashflow Capitalist fully agreed. Need more time to add more at these bargain prices. After reading this article I decided to take the time to add even more. In the most recent earnings call an analyst asked if they would consider a spinoff and he essentially said down the road they may
The Dutch Investor profile picture
Great article, I seriously consider buying into them. Thanks!
T'pee profile picture
I, agree! How nice it is to hold quality when once again quality is back in vogue:)
mds5375 profile picture
I have been very happy with my ADC investment until 2020. I have no problem that it fell like everything else at that time. What I do have a problem with is recovery since. While I continue to hold for now, there are far better returns I am passing up, and I won't wait forever. Better to go somewhere else for a while and come back later.
@mds5375 i treat ADC like a bond. Don’t expect dramatic returns but it’s a steady performer that won’t crash
Austin Rogers profile picture
@Miwicz Sure, it's like a bond, only with 5.5% to 8.5% annual dividend growth ;)
Austin Rogers profile picture
@mds5375 Pay attention to the underlying performance of the company, not the market's reaction to that performance. If you do that, in the long run, you'll be rewarded.
Thanks for confirming my outlook for ADC. They seem to be doing the right things. I’m a bit surprised they haven’t yet refinanced more of the ~ 4.8% debt with ~ 2.8% debt (maybe penalties on early payoff?).
I project total returns ~ 8-10% over 10 years. I’m satisfied with that considering equity prices have pulled higher prices forward from most equity sectors.
Joey Agree profile picture
@Jcastino see press release from yesterday at close. 👍🏻
Austin Rogers profile picture
@Jcastino This news story came out yesterday after I'd already finished writing the article: www.prnewswire.com/...
Liquidors profile picture
@Joey Agree

Ladies and gentlemen, here is Joey Agree.
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