Agree Realty Corporation

Agree Realty’s direct customers are retail tenants that sign long-term net leases for single-tenant locations, typically where a physical store is central to sales generation. The portfolio is oriented toward sectors management views as more insulated from e-commerce substitution, including grocery, home improvement and convenience stores, as well as auto-related and discount formats. Tenant credit quality is a key underwriting focus; as of December 31, 2025, about 66.8% of annualized base rent came from tenants (or parents) with an investment-grade rating. No single tenant represented more than 10% of annualized base rent at year-end 2025, reducing single-name rent concentration risk. Tenants choose Agree’s properties to secure well-located sites with predictable occupancy costs while shifting most property operating expense variability to the tenant under net lease terms.

Agree Realty’s strategy centers on scaling a nationally diversified net lease retail portfolio with long lease terms and tenant credit quality as core underwriting variables. The company uses a mix of acquisitions and ground-up development to deploy capital, as evidenced by 2025 investment volume of roughly $1.57 billion across acquisitions and completed developments. Portfolio construction emphasizes retail categories where physical locations are critical and where tenants have demonstrated omni-channel capabilities, aiming to mitigate e-commerce disruption risk. Operationally, Agree highlights internal systems that provide rapid access to lease data, tenant sales history and forecasting, supporting asset management discipline and expense control. The REIT structure and distribution requirements shape capital allocation toward steady cash generation and access to external financing for growth.