Agree Realty Corporation's Financial Performance Analysis

• Agree Realty Corporation (NYSE:ADC) reported earnings per share (EPS) of $0.41, slightly below estimates but generated revenue of approximately $160.7 million, surpassing expectations.
• ADC's quarterly funds from operations (FFO) of $1.04 per share surpassed the Zacks Consensus Estimate, marking consistent financial performance over the past four quarters.

Agree Realty Corporation (NYSE:ADC) is a real estate investment trust (REIT) that focuses on acquiring and developing properties net leased to industry-leading retail tenants. The company operates primarily in the United States and is known for its diversified portfolio of high-quality retail properties. ADC competes with other REITs in the retail sector, such as Realty Income Corporation and National Retail Properties.

On February 11, 2025, ADC reported earnings per share (EPS) of $0.41, slightly below the estimated $0.43. Despite this, the company generated revenue of approximately $160.7 million, surpassing the estimated $159.1 million. This revenue figure represents a positive surprise of 0.75%, as highlighted by Zacks, and marks an 11.5% increase compared to the same period the previous year.

The company also reported quarterly funds from operations (FFO) of $1.04 per share, surpassing the Zacks Consensus Estimate of $1.03 per share. This marks an improvement from the FFO of $1 per share recorded a year ago, with an FFO surprise of 0.97%. Over the past four quarters, ADC has exceeded consensus FFO estimates three times, demonstrating consistent financial performance.

Despite a slight decrease in net income attributable to common stockholders for the fourth quarter of 2024, ADC experienced an 11.8% increase in net income for the full year, reaching $181.8 million. This strong annual performance, coupled with a price-to-earnings (P/E) ratio of approximately 40.05, reflects investor confidence in the company's long-term growth potential. However, the negative debt-to-equity ratio of -1.00 and current ratio of -5.95 suggest potential liquidity challenges that investors should monitor.