ROYAL OAK, MI – Agree Realty Corporation (NYSE:ADC), a real estate investment trust, disclosed its weighted-average number of common shares outstanding for earnings per share calculation purposes for the third quarter and the first nine months of 2024.
According to the filing, the weighted-average number of common shares outstanding used in basic earnings per share calculations was 100,383,207 for the three months ended September 30, 2024, and 100,343,493 for the nine-month period. The company adjusted these figures for unvested restricted stock, which reduced the counts by 272,107 shares for both periods.
For diluted earnings per share, which accounts for potential dilution from securities like share-based compensation and forward equity offerings, the weighted-average number of shares was higher. The company reported 101,715,311 shares for the third quarter and 100,882,858 shares for the nine-month period. These figures include the effect of dilutive securities such as share-based compensation and shares potentially issued under at-the-market (ATM) forward equity offerings.
The ATM forward equity offerings had a notable impact on the diluted share count. For the third quarter of 2024, the offerings added 1,150,636 incremental shares, while for the nine-month period, they added 388,605 incremental shares. Additionally, the company included Operating Partnership Units (OP Units) in their diluted earnings per share calculations, adding 347,619 units for both periods.
In other recent news, Agree Realty Corporation reported robust financial results for the second quarter of 2024, with increased acquisition activity and a raised annual AFFO per share forecast. The company also expanded its revolving credit agreement to $1.25 billion, improving its financial flexibility.
Analysts at Stifel and RBC Capital Markets have responded positively to these developments, raising their respective price targets for Agree Realty shares while maintaining a Buy and an Outperform rating. However, UBS initiated coverage with a Neutral rating due to projected limited growth opportunities.
Agree Realty's operating partnership, Agree Limited Partnership, has also priced a public offering of $450 million in senior unsecured notes due in 2034, the proceeds of which are earmarked for general corporate use, including financing property acquisitions and development projects. These recent developments underline Agree Realty's strategic initiatives and potential for continued growth, as well as its focus on managing credit risk and investing in e-commerce and recession-resistant retail categories.
Agree Realty's enhanced financial flexibility, bolstered by the amended credit agreement and the successful pricing of senior unsecured notes, supports the company's growth strategy. The company's focus on sectors less vulnerable to economic downturns, such as e-commerce, is in line with its objective to maintain a high-quality portfolio that can weather various market cycles.
InvestingPro Insights
Agree Realty Corporation's recent disclosure of its weighted-average share counts aligns with several key metrics and trends highlighted by InvestingPro. The company's market capitalization stands at $7.56 billion, reflecting its significant presence in the REIT sector.
InvestingPro Tips reveal that Agree Realty has maintained dividend payments for 31 consecutive years and has raised its dividend for 11 consecutive years. This consistent dividend history is particularly relevant to investors considering the company's share count for earnings calculations, as it demonstrates a long-term commitment to shareholder returns.
The company's revenue growth of 20.68% over the last twelve months and a strong gross profit margin of 87.98% indicate robust financial performance. These metrics suggest that Agree Realty's expanding share count is supported by underlying business growth.
It's worth noting that Agree Realty is trading near its 52-week high, with a price that is 97.44% of its 52-week peak. This, coupled with a 46.71% price total return over the past year, reflects strong investor confidence in the company's performance and strategy.
For investors seeking more comprehensive analysis, InvestingPro offers 13 additional tips for Agree Realty Corporation, providing deeper insights into the company's financial health and market position.
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