Mission Statement, Vision, & Core Values of Agree Realty Corporation (ADC)

When you look at a real estate investment trust (REIT) like Agree Realty Corporation (ADC), what you're really buying into is the philosophy that drives its capital allocation, and their mission to RETHINK RETAIL is backed by serious numbers.

In a volatile market, how does a company manage to raise its 2025 Adjusted Funds From Operations (AFFO) per share guidance to a range of $4.31 to $4.33, while simultaneously boosting its investment guidance to between $1.50 Billion and $1.65 Billion? That kind of disciplined growth, which saw total assets hit $9.484 Billion as of September 30, 2025, is a direct result of core values like integrity, collaboration, and accountability.

Are you defintely clear on how these principles translate into a portfolio where approximately 68% of annualized base rents come from investment-grade tenants, and how that foundation supports a current annualized dividend of $3.144 per share? We'll break down the strategic scaffolding-the Mission Statement, Vision, and Core Values-that makes Agree Realty Corporation's financial performance so consistent.

Agree Realty Corporation (ADC) Overview

If you're looking at the retail real estate investment trust (REIT) sector, you need to understand Agree Realty Corporation. This company is a powerhouse, focusing on a disciplined net lease strategy that has delivered consistent growth, evidenced by its trailing twelve-month (TTM) revenue of nearly $688.64 million as of the third quarter of 2025.

Richard Agree started the predecessor, Agree Development Company, back in 1971, but the modern Agree Realty Corporation began its life as a publicly traded REIT with an Initial Public Offering (IPO) in 1994. Their core product isn't just property; it's a predictable, long-term revenue stream built on net lease agreements with industry-leading, omni-channel retail tenants. This means the tenant typically pays for taxes, insurance, and maintenance, simplifying the landlord's responsibilities.

Today, Agree Realty Corporation owns and operates a massive portfolio of 2,603 properties across all 50 US states, totaling approximately 54 million square feet of gross leasable area. They focus on essential retail-think grocery stores, pharmacies, and home improvement centers-which tend to be recession-resistant. That's a smart, defensive strategy in any economy.

Q3 2025 Financial Performance and Growth Drivers

The company's recent performance clearly shows its growth trajectory. In the third quarter of 2025 alone, Agree Realty Corporation reported revenue of $183.22 million, marking an impressive 18.7% increase year-over-year. This revenue growth is directly tied to their aggressive, yet selective, investment strategy.

For a REIT, the critical metric is Funds from Operations (FFO), which is a better measure of cash flow than simple net income. Core FFO per share rose by 8.4% to $1.09 in Q3 2025, while Adjusted Funds from Operations (AFFO) per share-which accounts for capital expenditures-increased 7.2% to $1.10. This growth is defintely a sign of strong operational execution.

Here's the quick math on their capital deployment: Agree Realty Corporation invested approximately $451 million in 110 retail net lease properties during Q3 2025. This was their largest quarterly investment since 2020. Consequently, they raised their full-year 2025 investment guidance to a range of $1.50 billion to $1.65 billion. That's a huge commitment to expansion. If you want to dive deeper into the nuts and bolts of their balance sheet, you should check out Breaking Down Agree Realty Corporation (ADC) Financial Health: Key Insights for Investors.

Agree Realty Corporation: A Leader in Net Lease Retail

Agree Realty Corporation is considered a leader in the net lease sector for a reason: portfolio quality. As of early 2025, approximately 68.3% of their annualized base rents came from investment-grade retail tenants. This high percentage of creditworthy tenants-companies like Walmart and 7-Eleven-translates directly to lower default risk and more reliable income for shareholders.

The market recognizes this stability. In 2025, the company achieved an A- issuer rating from Fitch Ratings, placing it among a select group of U.S. REITs with this level of creditworthiness. A strong credit rating means they can borrow money cheaper, which fuels their continued acquisition and development growth.

• Maintain a high percentage of investment-grade tenants.
• Focus on essential, e-commerce resistant retail.
• Leverage a strong balance sheet for acquisitions.

Their strategic focus on acquiring and developing properties for essential, omni-channel retailers, coupled with their significant capital deployment, makes them a company worth paying attention to. To truly understand why Agree Realty Corporation is successful, you need to look closer at the foundation of that portfolio.

Agree Realty Corporation (ADC) Mission Statement

If you are looking at Agree Realty Corporation (ADC), you need to understand that their mission is not just a poster on a wall; it's a clear, actionable strategy that drives their investment choices and financial results. The direct takeaway is that ADC is laser-focused on being a market leader in net lease real estate by strategically partnering with the strongest retailers, which is why their 2025 investment guidance is so aggressive.

The company's mission is to RETHINK RETAIL through the acquisition and development of properties net leased (where the tenant pays for most operating expenses) to industry leading, omni-channel retail tenants throughout the United States. This statement is the foundation for their long-term goal: delivering consistent, growing cash flow to you, the shareholder. Here's the quick math: a focused mission leads to a high-quality portfolio, which translates directly into a raised full-year 2025 Adjusted Funds From Operations (AFFO) per share guidance of $4.31 to $4.33.

Core Component 1: RETHINK RETAIL-Strategic Innovation

The phrase RETHINK RETAIL is the company's vision-in-action; it's about proactively identifying the retail concepts that will thrive, not just survive, in the future. This isn't about chasing fads. It's about recognizing that the best retailers operate an omni-channel model, blending physical stores with e-commerce, making their real estate essential, not optional.

This strategic filter is why ADC's portfolio is heavily weighted toward essential retail sectors like grocery stores, home improvement, and discount retailers. You see this commitment in their balance sheet strength, which earned them an A- issuer rating from Fitch Ratings in 2025. It also shows up in their ground lease strategy, where they own the land but not the building. Ground leases represented 10.3% of annualized base rents as of mid-2025, a conservative approach that minimizes landlord capital risk while securing prime locations for decades.

• Focus on future-proof retail.
• Minimize capital risk with ground leases.
• Maintain a best-in-class balance sheet.

Core Component 2: Partnering with Industry-Leading, Omni-Channel Tenants

The second core component is a commitment to credit quality. ADC is defintely not in the business of owning properties leased to struggling retailers. They target tenants with investment-grade credit ratings (a rating of BBB- or higher from a major credit agency), which signals a lower risk of default and more stable cash flow.

As of the second quarter of 2025, approximately 67.8% of ADC's annualized base rents came from investment-grade retail tenants. This is a huge insulation layer against economic volatility. For example, in the second quarter of 2025 alone, ADC acquired 91 high-quality retail net lease assets, including a one-off Walmart Supercenter and a large grocery-dominated portfolio. Their discipline is clear: they invested approximately $451 million in 110 retail net lease properties in the third quarter of 2025, demonstrating execution on their strategy to only acquire the highest-quality assets. This focus on quality is what drives their predictable cash flow growth, with Core Funds from Operations (Core FFO) per share increasing 8.4% to $1.09 in Q3 2025. For a deeper dive into who is investing in this quality, you might want to read Exploring Agree Realty Corporation (ADC) Investor Profile: Who's Buying and Why?.

Core Component 3: National Footprint and Long-Term Value Creation

The final component is the scale and reach of their operations, which directly supports long-term value creation for all stakeholders. By operating throughout the United States, ADC diversifies its risk across different regional economies and regulatory environments. This national scale is immense.

As of June 30, 2025, the company's portfolio consisted of 2,513 properties located in all 50 states, encompassing approximately 52.0 million square feet of gross leasable area. This massive footprint allows them to be a preferred partner for national retailers looking to expand. The ultimate measure of value creation for you is the dividend. For the nine months ended September 30, 2025, the company declared monthly cash dividends totaling $2.295 per common share, representing a 2.4% year-over-year increase, showing their commitment to returning capital. This growth and scale is what allows them to raise their total investment guidance for the full year 2025 to a range of $1.50 billion to $1.65 billion. That's a massive capital deployment that only a company with a clear mission and a strong balance sheet can manage.

Agree Realty Corporation (ADC) Vision Statement

You're looking for the bedrock principles that drive Agree Realty Corporation's (ADC) long-term value, and the answer is simple: their vision is to be the premier, most resilient retail net lease real estate investment trust (REIT) by aggressively pursuing high-quality, omni-channel tenants. This isn't just a slogan; it's a capital allocation strategy that has led to a full-year 2025 investment guidance of up to $1.65 billion, a clear signal of their confidence and growth trajectory.

My two decades in this space, including time at Blackrock, tells me that a strong mission and vision, backed by a fortress balance sheet, is the only way to navigate today's volatile market. ADC's approach maps near-term risks-like rising interest rates and retail disruption-to clear, actionable investment criteria. You need to see how their core principles translate into real-world portfolio quality.

Agree Realty Corporation's explicit mission is to RETHINK RETAIL through the acquisition and development of properties net leased to industry-leading, omni-channel retail tenants. This means they are not just buying buildings; they are investing in the future of how people shop, focusing on retailers that integrate their physical stores with their online presence. This is defintely the right play.

The company's focus on the triple net lease (NNN) structure-where the tenant pays for property taxes, insurance, and maintenance-is a deliberate choice to create stable, predictable cash flow. They are essentially a landlord to the best operators in the country, like Walmart and Home Depot, who consistently prove their retail concept is essential. This strategy mitigates operating risk, so management can focus on smart capital deployment.

• Acquire properties leased to omni-channel leaders.
• Maintain a high percentage of investment-grade tenants.
• Focus on long-term, predictable cash flow.

The vision of creating a lasting impact and sustainability is executed through disciplined, strategic asset accumulation. As of September 30, 2025, the portfolio consisted of 2,603 properties across all 50 states, covering approximately 53.7 million square feet of gross leasable area. Here's the quick math: that's a massive, diversified footprint that shields you from regional economic shocks.

A key component of this strategy is their increasing emphasis on ground leases, which represented 10.0% of total annualized base rents as of Q3 2025. A ground lease means ADC owns the land, but the tenant owns the building, which provides superior collateral value and virtually no re-leasing risk at the end of the term. For the nine months ended September 30, 2025, the total acquisition volume was approximately $1.1 billion, showing the relentless pace of this accumulation. This growth is the engine for shareholder value, which you can explore further in Exploring Agree Realty Corporation (ADC) Investor Profile: Who's Buying and Why?

The core values of integrity, collaboration, and accountability translate directly into their stringent financial underwriting and portfolio quality. This is where the rubber meets the road for a REIT. A whopping 66.7% of their annualized base rents are generated from investment-grade retail tenants-companies with a credit rating of BBB- or higher. This sector-leading exposure is the best defense against a recessionary environment.

For the full fiscal year 2025, the company raised its guidance for Adjusted Funds from Operations (AFFO) per share-the most accurate measure of a REIT's cash flow-to a range of $4.31 to $4.33. This projected growth, coupled with a strong balance sheet boasting over $1.9 billion of liquidity at the end of Q3 2025, shows a management team that is both aggressive in growth and conservative in its financing. They maintain an A- issuer rating from Fitch Ratings, putting them in an elite class of only 13 publicly listed U.S. REITs with an A- credit rating or better. That's a clear signal of financial accountability.

Next step: Dig into the specific tenants that make up that 66.7% investment-grade exposure to stress-test your own portfolio's retail component.

Agree Realty Corporation (ADC) Core Values

You need to know what truly drives a Real Estate Investment Trust (REIT) like Agree Realty Corporation, especially in a volatile market. It's not just the assets; it's the principles that dictate capital allocation and risk. For ADC, their core values-inferred directly from their 2025 actions-map to a strategy of financial strength, disciplined growth, and a focus on the future of retail, all aimed at delivering consistent shareholder value.

Honestly, a company's values are only as good as the numbers they produce. Here's the quick math on how Agree Realty is living its principles through the 2025 fiscal year.

Fortress Balance Sheet & Financial Discipline

Financial stability, or maintaining a Fortress Balance Sheet, is a cornerstone of Agree Realty's operational philosophy. They know that in a high-interest-rate environment, a strong balance sheet is your best defense against market shocks and your best offense for opportunistic acquisitions. This discipline is what separates the long-term winners from the short-term speculators.

The company's commitment to this value is defintely clear in its credit profile and liquidity. In 2025, Agree Realty achieved an A- issuer rating from Fitch Ratings, placing it among a select group of U.S. REITs. This rating is a direct result of their prudent capital management, which has kept their pro forma net debt to recurring EBITDA ratio low at just 3.5x as of the third quarter of 2025. That's a low leverage ratio for a REIT, signaling significant financial flexibility.

• Maintain over $1.9 billion in Q3 2025 liquidity.
• No material debt maturities until 2028.
• Use low leverage to secure better financing.

Disciplined Portfolio Growth

Agree Realty's growth is about quality, not just quantity. Their value here is a disciplined investment strategy that focuses on necessity-based, investment-grade retail tenants (those with a credit rating of BBB- or higher). You want tenants like Walmart and Home Depot, not speculative ventures. This focus ensures a highly predictable and reliable income stream.

The company has demonstrated this discipline by raising its full-year 2025 investment guidance to a range of $1.5 billion to $1.65 billion, a significant increase from the prior year. But what this estimate hides is the underwriting rigor: their portfolio of 2,603 properties across all 50 states (as of September 30, 2025) maintains a sector-leading investment-grade exposure of approximately 67% of annualized base rents. That high percentage of blue-chip tenants is the real story here.

Rethinking Retail Through Innovation

The mission statement explicitly says to 'RETHINK RETAIL,' which translates into a core value of innovation in real estate execution. This isn't about flashy tech; it's about having a multi-faceted approach to sourcing high-quality assets. You can't rely on just one way to grow anymore.

Agree Realty executes this through its three external growth platforms: Acquisitions, Development, and its proprietary Developer Funding Platform (DFP). Through the first nine months of 2025, they committed approximately $190 million across 30 Development and DFP projects. This proactive, internal development capability allows them to secure premium, build-to-suit locations with top-tier retailers, often on ground leases (where the company owns the land but not the building), which represented 10% of total annualized base rents as of Q3 2025. It's a smart, capital-efficient way to grow.

Unwavering Shareholder Commitment

A REIT's ultimate value is in the return it provides to its owners. Agree Realty's commitment to its shareholders is a core value demonstrated by its consistent and growing dividend payout, which is a sign of management's confidence in the future cash flow. They pay monthly, which is a nice touch for individual investors.

The company raised its full-year 2025 Adjusted Funds From Operations (AFFO) per share guidance to a range of $4.31 to $4.33, reflecting strong operational performance. This strong earnings growth directly supports the dividend, which was increased to $0.262 per share monthly for October 2025. Critically, the dividend payout ratio remains conservative at approximately 70% of AFFO per share for the third quarter, giving them a big cushion to keep increasing the payment and reinvesting capital. That conservative payout ratio is your safety net.