The following is a summary of the Agree Realty Corporation (ADC) Q1 2024 Earnings Call Transcript:
Financial Performance:
Agree Realty Corporation reported Q1 core FFO was $1.01 per share, a 3.5% year-over-year increase.
AFFO per share for Q1 increased 4.6% year-over-year to $1.03.
Full-year 2024 guidance for AFFO per share was introduced at $4.10 to $4.13, representing 4.2% growth at the midpoint.
Total liquidity exceeds $920 million, with over $385 million in hedge capital.
Net debt to recurring EBITDA remained steady quarter-to-quarter at approximately 4.3x.
Business Progress:
Agree Realty invested $140 million in 50 quality retail net lease properties in Q1.
Full-year disposition activity is estimated between $50 million and $100 million.
They started forward development and DFP projects with overall anticipated costs of about $18 million.
Leases on around 405,000 square feet of gross leasable area were executed during the quarter.
The company expects to meet its relatively confident and achievable financial guidance range of 410 to 413.
Agree Realty remains confident in its guidance for the rest of the year and is exploring opportunities for acquiring ground leases.
Non-core assets will be disposed of and recycled, mainly in Florida. This strategy is influenced by a disproportionate increase in 1031 exchange activity in that state.
The opening of a Bed Bath & Beyond in Memphis, Tennessee, represents Agree Realty's first freestanding box redevelopment.
The company has successfully executed replacing leases at around 110% of previous rents, showing their strategic asset management.
The firm expanded its disposition team to explore more investment alternatives actively.
More details: Agree Realty Corp IR
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