ADC

Realty Income Corporation O entered the second half of 2026 with better earnings visibility after a solid second quarter. AFFO per share increased 3.8% year over year to $1.09, while first-half AFFO per share rose 5.2% to $2.22. Management also raised its full-year AFFO guidance and investment target, pointing to continued opportunities across its expanding property and capital platforms. The stock reaction, however, was muted. Realty Income shares fell 0.54% to $62.36 on Aug. 6, the first trading session after the Aug. 5 results, and closed at $61.89 on Aug. 10 after another 0.99% decline. So far this year, Realty Income stock has gained 9.8% but underperformed the Zacks REIT and Equity Trust - Retail industry. However, O stock has outpaced its close peers, like Agree Realty Corporation ADC and Essential Properties Realty Trust, Inc. EPRT. Image Source: Zacks Investment Research The question now is whether stronger investment activity, steady property fundamentals and an expanding funding platform can support further per-share growth. At the same time, interest rates, acquisition pricing and the valuation investors assign to dependable REIT income remain important considerations. Realty Income's underlying business remained healthy in the second quarter. Revenues increased to $1.55 billion from $1.41 billion a year ago, while AFFO available to common shareholders rose to $1.02 billion from $947.5 million. Portfolio occupancy was 98.8% compared with 98.9% at the end of the first quarter and 98.6% a year earlier.The company also generated a 102.7% rent recapture rate on re-leased properties. Same-store rental revenues increased 1.2%, showing that organic growth remains modest but positive. Realty Income's portfolio included 15,588 properties across 92 industries at quarter-end, giving it a level of diversification that is difficult for smaller net-lease operators to match. Agree Realty and Essential Properties offer similar exposure to long-duration net leases, but both operate with smaller portfolios and somewhat different tenant mixes. Realty Income’s larger scale gives it broader sourcing access across retail, industrial and international markets, while ADC remains more concentrated in high-quality retail properties and EPRT has built a strong position in service-oriented and middle-market tenants. That scale can help Realty Income find more investment opportunities, although it also means the company needs a much larger volume of acquisitions to generate meaningful per-share growth. Investment activity remains central to Realty Income's outlook. The company invested roughly $2.6 billion during the second quarter, or $2.1 billion at its pro-rata share, at a weighted average initial cash yield of 7.3%. First-half investments totaled about $5.34 billion. Management consequently raised 2026 investment guidance from $9.5 billion to $10 billion. Industrial properties represented about 65% of second-quarter real estate investment activity. Realty Income is also expanding in Europe, private capital and data centers. Its $6 billion programmatic hyperscale data-center venture with Cloud Capital could involve up to $1.4 billion of equity from Realty Income over time. Management said its wider investment channels allow it to pursue opportunities across asset types, geographies and different parts of the capital structure.The broader investment approach gives Realty Income more growth channels than either Agree Realty or Essential Properties. ADC remains focused largely on retail net lease, while EPRT continues to expand through a smaller and more targeted acquisition platform. Realty Income, by comparison, is deploying capital across industrial properties, Europe, private-capital vehicles and data centers. This diversification can support longer-term growth, but it also introduces more execution risk as management moves into areas that sit outside the traditional retail net-lease model. Realty Income ended the second quarter with about $3.5 billion of available liquidity and net debt to annualized pro forma adjusted EBITDAre of 5.4 times. After quarter-end, the company expanded its revolving credit facilities to $5.5 billion, increased its commercial-paper capacity and issued €600 million of unsecured notes. Private capital is also reducing Realty Income’s dependence on common-equity issuance. Management noted that public equity represented only 18% of year-to-date investment volume compared with an average of 47% during the prior three years. This broader funding base could strengthen Realty Income’s ability to compete with Agree Realty, Essential Properties and private-market buyers for attractive assets. Still, higher Treasury yields remain a challenge for REIT valuations. The real-estate sector came under pressure again on Monday as long-term bond yields rose. Higher financing costs can narrow acquisition spreads and make income-oriented REIT shares less attractive relative to bonds. Over the past 30 days, FFO per share estimates for both 2026 and 2027 have remained unchanged, though the figures suggest 3.97% and 3.47% growth year over year, indicating a balanced view of growth and cost pressures. Image Source: Zacks Investment Research Valuation-wise, Realty Income stock is trading at a forward 12-month price-to-FFO of 13.62X, below the retail REIT industry average of 16.75X but ahead of its three-year median of 13.24X. O stock is also currently trading at a reasonable discount compared with its industry peers, Agree Realty Corporation and Essential Properties Realty Trust. This valuation disparity might not be as favorable as it seems. Agree Realty is trading at a forward 12-month price-to-FFO of 15.80X, while Essential Properties Realty Trust is trading at 14.22X.The Value Score of C suggests that Realty Income may not be a bargain at current levels. Still, the company’s strategic investments, consistent dividend growth, underpinned by predictable rental income, keep it appealing for long-term income-oriented investors. Management's higher AFFO guidance is encouraging, yet the increase is modest. Realty Income now expects about 4% AFFO-per-share growth at the midpoint. This suggests investors should weigh the reliable income profile against a growth rate that remains measured. Image Source: Zacks Investment Research Realty Income's second-quarter results support the case for patience rather than a major change in positioning. The company is producing AFFO growth, maintaining high occupancy and finding enough investment opportunities to raise its 2026 deployment target. Its stronger liquidity position and broader access to private capital are additional upsides. However, the post-earnings share-price weakness, interest-rate sensitivity and modest internal growth argue against chasing the stock after its earlier gains. For investors who already own Realty Income, maintaining the existing position appears appropriate while collecting the monthly dividend and monitoring whether the larger investment pipeline produces sustained per-share growth over the coming quarters. Check Realty Income’s dividend history here.At present, Realty Income carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Realty Income Corporation (O) : Free Stock Analysis Report Agree Realty Corporation (ADC) : Free Stock Analysis Report Essential Properties Realty Trust, Inc. (EPRT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Realty Income Corporation O, a leader in the net lease sector, is slated to release second-quarter 2026 results on Aug. 5, after market close. The Zacks Consensus Estimate for the to-be-reported quarter’s adjusted funds from operations (AFFO) and revenues is pegged at $1.09 per share and $1.54 billion, respectively.While the Zacks Consensus Estimate for second-quarter 2026 AFFO per share has remained unchanged over the past two months, it suggests 3.81% growth year over year. The Zacks Consensus Estimate for quarterly revenues implies a notable year-over-year increase of 8.98%. Image Source: Zacks Investment Research For the current year, the Zacks Consensus Estimate for Realty Income’s revenues is pegged at $6.27 billion, indicating a rise of 9.03% year over year. The consensus mark for 2026 AFFO per share is pinned at $4.45, calling for an expansion of around 3.97% on a year-over-year basis. Over the trailing four quarters, the company’s AFFO per share surpassed the Zacks Consensus Estimate on two occasions, met it once and missed it in the other. This is depicted in the graph below: Realty Income Corporation price-eps-surprise | Realty Income Corporation Quote Our proven model doesn’t predict a surprise in terms of AFFO per share for Realty Income this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an AFFO beat, which is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.Realty Income currently carries a Zacks Rank #2 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Realty Income’s second-quarter 2026 earnings report is expected to show that the company continued to benefit from the momentum built in the first quarter, supported by strong occupancy, steady investment activity and growing contributions from its private capital platform. Investors are likely to have focused on whether acquisition-driven growth and resilient property fundamentals were enough to offset the impact of higher financing costs during the quarter under review.Management’s updated 2026 guidance provides the benchmark for second-quarter expectations. Realty Income is expected to have experienced continued AFFO growth, supported by occupancy around its 98.5% target, same-store rent growth of 1-1.3% and a full-quarter contribution from investments completed earlier in the year. The company’s diversified portfolio and long-term lease structure are expected to have supported stable rental income, while recent acquisitions are likely to have contributed to revenue growth.The company is also expected to have experienced another active investment quarter. After deploying $2.8 billion during the first quarter and raising its full-year investment target to $9.5 billion, Realty Income’s acquisition pipeline is expected to have remained healthy across the United States and Europe. Continued capital deployment at attractive yields may have benefited rental revenue growth and strengthened earnings visibility.Realty Income is further expected to have seen broader support from its expanding private capital strategy. The Apollo retail joint venture, additional capital raised through the U.S. Core Plus Fund and other institutional partnerships are expected to have improved revenue visibility while providing greater funding flexibility. These initiatives are likely to have contributed to investment capacity without relying solely on the public equity markets.On the other hand, higher borrowing costs are expected to have pressured results in the quarter under review, although the company’s use of cross-currency swaps may have partially offset financing costs. Overall, Realty Income is expected to have delivered another stable quarter, with resilient operating fundamentals outweighing the impact of a higher-rate funding environment. Shares of Realty Income have rallied 11.4% so far in the year, aligning with the S&P 500 composite’s increase but underperforming the Zacks REIT and Equity Trust - Retail industry’s rise of 21.4%. While Realty Income has underperformed its industry, it has rallied more than its peers like Agree Realty Corporation ADC and Essential Properties Realty Trust, Inc. EPRT. Image Source: Zacks Investment Research Valuation-wise, Realty Income trades at a forward price-to-FFO of 13.98X, below the retail REIT industry average of 17.19X but above its one-year median of 13.71X. O stock is also currently trading at a reasonable discount compared with its industry peers, Agree Realty Corporation and Essential Properties Realty Trust. However, this valuation disparity might not be as favorable as it seems. Agree Realty is trading at a forward 12-month price-to-FFO of 16.40X, while Essential Properties Realty Trust is trading at 14.69X.However, the Value Score of D suggests that Realty Income may not be a bargain at current levels. Image Source: Zacks Investment Research Realty Income’s second-quarter setup supports a favorable investment view. High occupancy, steady rent growth and contributions from recent acquisitions are expected to have supported AFFO, while the Apollo venture and U.S. Core Plus Fund may have improved funding flexibility and fee income. The company’s diversified portfolio, disciplined capital deployment, strong liquidity and raised 2026 guidance suggest that operating momentum remains intact.For investors seeking dependable income with moderate growth potential, the outlook supports adding the shares at present levels.Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Realty Income Corporation (O) : Free Stock Analysis Report Agree Realty Corporation (ADC) : Free Stock Analysis Report Essential Properties Realty Trust, Inc. (EPRT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Core FFO per Share: $1.25 for Q2 2026, a 7.5% increase year over year. AFFO per Share: $1.14 for Q2 2026, a 7.4% increase year over year. Full-Year 2026 AFFO Guidance: Raised to $4.57-$4.59 per share, implying nearly 6% year-over-year growth. Investment Volume: Company record of over $500 million invested in Q2 across 102 properties; full-year guidance raised to $1.6-$1.8 billion. Acquisitions: $451 million across 82 retail net lease assets, with a weighted average cap rate of 7% and weighted average lease term of 11.2 years. Development and DFP: Record construction start volume with 5 projects breaking ground at approximately $88 million total anticipated cost; 20 projects completed or under construction in H1, representing ~$200 million of committed capital. Dispositions: Sold 14 properties for gross proceeds of approximately $30 million at a weighted average cap rate of 7%. Occupancy: Ticked up 10 basis points sequentially to a company record of 99.8%. Leasing Activity: Executed new leases, extensions, or options on approximately 760,000 square feet in Q2 with a recapture rate of approximately 105%. Dividend: Increased monthly cash dividend to $0.267 per share, equating to an annualized dividend of over $3.20 per share, a 4.3% year-over-year increase; payout ratio of 70% of AFFO. Balance Sheet: Net debt to recurring EBITDA was approximately 3.7 times pro forma for forward equity settlement; fixed charge coverage ratio of 4.1 times. Liquidity: Total liquidity stood at approximately $1.9 billion at quarter end. Warning! GuruFocus has detected 11 Warning Signs with ADC. Is ADC fairly valued? Test your thesis with our free DCF calculator. Release Date: July 31, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Agree Realty Corp (NYSE:ADC) achieved a company record of over $500 million in investments during Q2 2026, with a weighted average cap rate of 7% and a weighted average lease term of 11.2 years. The company raised its full-year investment volume guidance to $1.6-$1.8 billion, a 24% increase from initial guidance, and raised its full-year AFFO per share guidance to $4.57-$4.59, implying nearly 6% growth. Portfolio quality remains exceptional, with occupancy hitting a record 99.8%, investment-grade exposure at nearly two-thirds of the portfolio, and 73% of acquired annualized base rents from investment-grade retailers. The development and Developer Funding Platform (DFP) are scaling rapidly, with construction starts tripling year-over-year and progress toward the medium-term goal of $250 million in annual development and DFP commitments. The balance sheet is well-positioned with $1.9 billion in liquidity, $1.4 billion in hedged capital (including forward equity and swaps), and no material debt maturities until 2028, providing significant visibility into future cost of capital. Credit and occupancy losses remain minimal at just 10 basis points year-to-date, leading to a lowered full-year assumption of 25 basis points, reflecting strong tenant performance and a healthy watch list. Agree Realty Corp (NYSE:ADC) faces potential interest rate volatility, with the 10-year Treasury elevated at 4.7%, which could impact future acquisition cap rates and overall investment spreads. The company's net debt to recurring EBITDA is 5.2 times when excluding unsettled forward equity, indicating higher leverage on a current basis, though pro forma leverage is a more conservative 3.7 times. Dispositions during the quarter included lower-quality assets, such as Goodyear and Advanced Auto Parts stores, with limited remaining lease terms of approximately 6.9 years, highlighting ongoing portfolio pruning needs. The company's reliance on forward equity and forward-starting swaps to hedge capital costs introduces execution risk, as the settlement of these instruments is subject to market conditions and timing. While the development pipeline is growing, it carries inherent construction and execution risks, including potential cost overruns or delays, which could impact projected returns and earnings growth. The competitive landscape for net lease assets remains intense, with cap rates having been 'banned within a band' for three years, potentially limiting opportunities for yield expansion despite robust acquisition volumes. Q: You had robust acquisition volume in the first quarter, now again in the second quarter. With acquisition activity accelerating across the net lease sector, are you seeing any changes in bidding behavior for the transactions you're pursuing, particularly for larger portfolios or investment grade assets?A: Joey Agree (CEO) stated there have been no material changes in competition or cap rates, which have been in a band for nearly three years. He noted that the quality of acquisitions improved, with over 73% from investment grade retailers this quarter, up from 60% last quarter, while cap rates remained the same. He attributed this to the depth of the team's relationships and the asymmetrical opportunities pursued with retail partners, not to any broader market changes. Q: Could you walk us through the BP transaction and the rationale behind it, and what makes travel centers of interest for Agree Realty?A: Joey Agree (CEO) explained the BP transaction was approximately $75 million for large-format travel centers with BP North America credit guaranteeing them (A- rated credit). He highlighted that these are large-format travel centers typically located on major interstate exit ramps with long-term leases and significant escalations. He reiterated the company's focus on large-format convenience stores and off-price sectors, which were the subjects of recent white papers. Q: You've been leaning more into ground leases. What makes them attractive on a risk-adjusted return perspective?A: Joey Agree (CEO) clarified that the company isn't deliberately leaning into ground leases but is uncovering opportunities through its platforms. He emphasized that ground leases are his favorite risk-adjusted returns in the net lease sector because the tenant builds the building at their own expense, the company owns the land, and if the tenant leaves, the building reverts to the company free and clear without any depreciation taken. He noted the ground lease portfolio now represents over 10% of the overall portfolio. Q: On the credit loss side, a very impressive performance this quarter. How has this impacted your guidance, and what's on the watch list today?A: Peter Coughenour (CFO) stated the company lowered its credit loss assumption to 25 basis points from a prior range of 25 to 50 basis points. Through the first half of the year, the company experienced just 10 basis points of fully loaded credit and occupancy loss, with only 6 basis points in the second quarter. He noted the watch list is in a good spot, lower than a year or two ago, with the biggest piece being a few AMC theaters, which were recently upgraded by S&P. Q: You commenced 5 projects in the quarter for roughly $90 million. As you continue to grow, is there a path to larger format or multi-tenant development that would allow you to deploy more capital at one time?A: Joey Agree (CEO) confirmed the company is open to larger multi-tenant developments, citing examples like combining two TJX concepts (HomeGoods and Marshalls) or pairing Burlington with Ross or TJ Maxx. He noted the 7-Eleven projects are turnkey developments averaging approximately $10-12 million per project, but the company is more than willing to execute on larger off-price concepts with multiple stores. Q: Ground leases were a large part of the portfolio this quarter. How large do you ultimately see the ground lease portfolio becoming as a percentage of the business?A: Joey Agree (CEO) said the ground lease portfolio has hovered around the 10-11% mark for several years. He clarified it's not a separate channel or concerted effort, but rather opportunities uncovered through external activities. He noted there is elevated ground lease exposure in the back half of the year through unique opportunities, but there is no ultimate goal percentage. The ultimate goal remains assembling the highest quality retail portfolio growing at approximately 400 properties per year. Q: On the cadence of funding sources, you have about $425 million of forward equity contracts maturing in October. What are you thinking about in terms of different funding sources and their cadence throughout the back half of the year?A: Peter Coughenour (CFO) stated the company is in a great position with $1.9 billion of liquidity, including $1.1 billion of outstanding forward equity. He noted the $425 million of forward equity maturing in the back half of the year could be extended or settled, with a good chance of settlement subject to capital alternatives. He also mentioned the $300 million of forward-starting swaps in place, which have taken base rate risk for future 10-year debt issuance off the table, allowing the company to pick its spot for an issuance. Q: How should we be thinking about your expense growth over the next couple of years versus today? You've done a good job bringing G&A down as a percentage of revenues. How much more opportunity is there to limit growth on the expense side?A: Joey Agree (CEO) said there is tremendous opportunity for efficiency, noting the company has approximately 100 team members and just completed over 100 transactions in a quarter. He highlighted the use of AI tools and in-house systems, with COO Nicole Wine running that side of the business. He expects continued compression of G&A as a percentage of revenues, with the company preferring to bring in young team members and train them rather than adding significant headcount. Q: Given the steeper yield curve, where is your most attractive source of capital and what's the pricing on a debt perspective if you did anything in the back half of the year?A: Peter Coughenour (CFO) stated that including the $300 million of forward-starting swaps in place, the company could probably issue 10-year debt in the low 5% range today. He noted that with the fully drawn $350 million term loan, a public unsecured offering is the most attractive longer-term option as the company looks forward. Q: On the $250 million goal for development and DFP, can you double-click on whether that's existing tenants or new tenants, and how you're going about scaling that opportunity?A: Joey Agree (CEO) clarified there are no new tenants that the company doesn't currently own in the portfolio, though they would selectively develop for new tenants. He noted the $250 million goal, set about 18 months ago as a three-year goal, could potentially be hit this year, ahead of schedule. He highlighted the great team in place, growing relationships, and new geographic territories being worked on a preferred basis for For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Agree Realty Corporation? Here are five stocks we like better. Record investment activity: Agree Realty invested more than $500 million in the second quarter, including $451 million for 82 retail net-lease properties, while development activity also reached record levels. Raised 2026 outlook: The company increased its full-year investment-volume guidance to $1.6 billion–$1.8 billion and AFFO-per-share guidance to $4.57–$4.59, implying nearly 6% year-over-year growth at the midpoint. Portfolio and balance sheet remained strong: Occupancy reached a record 99.8%, liquidity stood at approximately $1.9 billion, and the company raised its monthly dividend by 4.3% year over year. 3 Stocks to Buy After Heavy Insider Buying Agree Realty (NYSE:ADC) reported record second-quarter investment activity and raised its full-year outlook, citing strong acquisition, development and portfolio performance. President and CEO Joey Agree said the company invested more than $500 million across its three external growth platforms during the quarter, calling it a company record. The investment activity included $451 million of acquisitions involving 82 retail net-lease assets, along with development and developer funding platform activity. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now “The combination of real estate attributes, credit composition, and lease terms similarly represent the highest quality quarter in our company’s history,” Agree said. The company raised its full-year 2026 investment-volume guidance to a range of $1.6 billion to $1.8 billion. At the midpoint, the updated range exceeds the company’s investment activity last year and represents a 24% increase from its initial guidance for 2026, according to Agree. → Microsoft Just Flipped the AI Spending Narrative Overnight Agree Realty also increased its full-year adjusted funds from operations, or AFFO, per-share guidance to $4.57 to $4.59. The midpoint was raised by $0.02 and implies nearly 6% year-over-year growth, CFO Peter Coughenour said. Core FFO per share was $1.13 in the second quarter, up 7.5% from a year earlier. AFFO per share was $1.14, an increase of 7.4% year over year. → Carrier Earnings Could Send the Stock to a New All-Time High Coughenour said the updated outlook reflects higher investment activity and continued portfolio strength. The company now assumes 25 basis points of credit and occupancy loss for the year, at the low end of its prior 25-to-50-basis-point range. Through the first half of the year, Agree Realty experienced 10 basis points of fully loaded credit and occupancy loss. Second-quarter acquisitions were concentrated in sectors including auto parts, home improvement, grocery, farm and rural supply, and convenience stores. Notable investments included three Walmart Supercenter ground leases in Missouri, Ohio and Wisconsin; a Walmart Neighborhood Market in Oregon; BP-branded travel centers; and a Home Depot ground lease in New Hampshire. The acquired assets carried a weighted-average capitalization rate of 7% and a weighted-average lease term of 11.2 years. Investment-grade retailers accounted for more than 73% of annualized base rent acquired during the quarter, while ground leases represented approximately 13.5% of acquired annualized base rent. Agree said the company has not seen material changes in competitive bidding conditions or cap rates, which he said have remained within a relatively consistent range for about three years. He attributed the company’s ability to acquire higher-credit assets without sacrificing yield to its retailer relationships, internal team and ability to offer multiple transaction structures. Regarding the approximately $75 million BP transaction, Agree said the assets are large-format travel centers backed by BP North America, which carries an A-minus credit rating. He said the properties are generally located near interstate exits and feature long-term leases with significant escalations. Ground leases accounted for more than 10% of Agree Realty’s annualized base rent at quarter-end. Agree described them as among his preferred risk-adjusted opportunities because the tenant has typically funded the building while the company owns the land. If a tenant leaves, the building reverts to the landowner, he said. The company commenced five development and developer funding projects during the quarter, with anticipated costs of about $88 million. The projects included its seventh and eighth 7-Eleven locations under construction, three Ross Dress for Less sites, two Burlington locations and three TJX concepts. Through June 30, Agree Realty had commenced more than $105 million of projects, more than three times the volume in the prior-year period. It had 20 projects completed or under construction in the first half, representing roughly $200 million of committed capital. The company is pursuing a medium-term goal of $250 million in annual development and developer funding platform commencements. Agree said there is a “50/50 shot” that the company reaches that target this year, subject to diligence and timing, and that management would set a new goal if it reaches the target ahead of schedule. Agree said the development effort centers on tenants already represented in its portfolio, though the company may selectively develop for new tenants. The company continues to focus on off-price retail and large-format convenience stores, he said. Agree Realty sold 14 properties during the quarter for approximately $30 million in gross proceeds at a weighted-average cap rate of 7%. The dispositions primarily included three Goodyear locations and four Advance Auto Parts stores. Agree said the properties were non-investment-grade assets with roughly 6.9 years of remaining lease term. The company executed new leases, extensions or options on about 760,000 square feet during the quarter, producing a recapture rate of approximately 105%. Occupancy increased 10 basis points sequentially to 99.8%, matching a company record. At quarter-end, the portfolio comprised 2,825 properties in all 50 states and Washington, D.C. Nearly two-thirds of the portfolio was investment grade, while 268 ground leases accounted for more than 10% of annualized base rent. Year-to-date capital markets activity exceeded $1 billion. During the quarter, the company sold about 400,000 shares of forward equity for approximately $31 million in net proceeds and settled about 4.3 million shares of existing forward equity for nearly $315 million. Agree Realty ended the quarter with approximately $1.9 billion of liquidity, including cash, forward equity and more than $750 million available under its revolving credit facility, net of commercial-paper borrowings. Pro forma for the settlement of outstanding forward equity, net debt to recurring EBITDA was approximately 3.7 times. The company also said it has $300 million of forward-starting swaps in place, effectively fixing the base rate for a contemplated 10-year unsecured debt issuance at about 4.1%. Coughenour said the company could issue 10-year debt in the low-5% range based on current conditions and its swaps. Agree Realty increased its monthly common dividend to $0.267 per share for April through June, equivalent to an annualized dividend of more than $3.20 per share. The dividend represented a 4.3% year-over-year increase and had a second-quarter AFFO payout ratio of 70%. Agree Realty Corporation (NYSE: ADC) is a publicly traded real estate investment trust headquartered in Chicago, Illinois. Founded in 1971, the company converted to a REIT structure in 2013 and focuses on acquiring, developing and managing a diversified portfolio of retail properties under long-term, triple-net (NNN) leases. Its tenant roster spans national and regional retailers in sectors such as grocery, home improvement, convenience and specialty retail. Agree Realty's primary business activities include sourcing and underwriting new property acquisitions, originating build-to-suit projects and executing value-add redevelopment programs. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Agree Realty Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Record Quarterly Investment Activity of $502 Million Raises 2026 Investment Guidance to $1.6 Billion to $1.8 Billion Increases 2026 AFFO Per Share Guidance to $4.57 to $4.59 ROYAL OAK, Mich., July 30, 2026--(BUSINESS WIRE)--Agree Realty Corporation (NYSE: ADC) (the "Company") today announced results for the quarter ended June 30, 2026. All per share amounts included herein are on a diluted per common share basis unless otherwise stated. Second Quarter 2026 Financial and Operating Highlights: Invested a Company record of approximately $502 million in 102 retail net lease properties Commenced five development or Developer Funding Platform ("DFP") projects for total committed capital of approximately $88 million Net Income per share attributable to common stockholders increased 2.2% to $0.44 Core Funds from Operations ("Core FFO") per share increased 7.5% to $1.13 Adjusted Funds from Operations ("AFFO") per share increased 7.4% to $1.14 Declared a monthly dividend of $0.267 per common share for June, a 4.3% year-over-year increase Settled 4.3 million shares of outstanding forward equity for net proceeds of approximately $313 million Balance sheet well positioned at 3.7 times proforma net debt to recurring EBITDA; 5.2 times excluding unsettled forward equity First Half 2026 Financial and Operating Highlights: Invested a Company record of approximately $925 million in 187 retail net lease properties 20 development or DFP projects completed or under construction with anticipated total costs of approximately $200 million Net Income per share attributable to common stockholders increased 10.6% to $0.94 Core FFO per share increased 7.8% to $2.25 AFFO per share increased 7.7% to $2.28 Declared dividends of $1.587 per share, a 3.9% year-over-year increase Raised approximately $686 million of forward equity via the Company's at-the-market equity ("ATM") program Ended the first half with approximately $1.9 billion of liquidity including availability on the revolving credit facility, outstanding forward equity, and cash on hand Financial Results Net Income Attributable to Common Stockholders Net Income for the three months ended June 30, 2026 increased 11.5% to $52.8 million, compared to $47.3 million for the comparable period in 2025. Net Income per share for the three months ended June 30th increased 2.2% to $0.44, compared to $0.43 for the comparable period in 2025. Net Income for the six months ended June 30, 2026 increased 22.2% to $113.0 million, compared to $92.5 million for the comparable period in 2025. Net Income per share for the six months ended June 30th increased 10.6% to $0.94, compared to $0.85 for the comparable period in 2025. Core FFO Core FFO for the three months ended June 30, 2026 increased 17.3% to $136.0 million, compared to $115.9 million for the comparable period in 2025. Core FFO per share for the three months ended June 30th increased 7.5% to $1.13, compared to $1.05 for the comparable period in 2025. Core FFO for the six months ended June 30, 2026 increased 19.1% to $272.4 million, compared to $228.6 million for the comparable period in 2025. Core FFO per share for the six months ended June 30th increased 7.8% to $2.25, compared to $2.09 for the comparable period in 2025. AFFO AFFO for the three months ended June 30, 2026 increased 17.3% to $138.0 million, compared to $117.7 million for the comparable period in 2025. AFFO per share for the three months ended June 30th increased 7.4% to $1.14, compared to $1.06 for the comparable period in 2025. AFFO for the six months ended June 30, 2026 increased 19.0% to $275.6 million, compared to $231.6 million for the comparable period in 2025. AFFO per share for the six months ended June 30th increased 7.7% to $2.28, compared to $2.12 for the comparable period in 2025. Dividend In the second quarter, the Company declared monthly cash dividends of $0.267 per common share for each of April, May and June 2026. The monthly dividends declared during the second quarter reflect an annualized dividend amount of $3.204 per common share, representing a 4.3% increase over the annualized dividend amount of $3.072 per common share from the second quarter of 2025. The dividends represent payout ratios of approximately 71% of Core FFO per share and 70% of AFFO per share, respectively. For the six months ended June 30, 2026, the Company declared monthly cash dividends totaling $1.587 per common share, a 3.9% increase over the dividends of $1.527 per common share declared for the comparable period in 2025. The dividends represent payout ratios of approximately 70% of Core FFO per share and 70% of AFFO per share, respectively. Subsequent to quarter end, the Company declared a monthly cash dividend of $0.267 per common share for July 2026. The July monthly dividend reflects an annualized dividend amount of $3.204 per common share, representing a 4.3% increase over the annualized dividend amount of $3.072 per common share from the second quarter of 2025. The July dividend is payable on August 14, 2026 to stockholders of record at the close of business on July 31, 2026. Additionally, subsequent to quarter end, the Company declared a monthly cash dividend on its 4.25% Series A Cumulative Redeemable Preferred Stock of $0.08854 per depositary share, which is equivalent to $1.0625 per annum. The dividend is payable on August 3, 2026 to stockholders of record at the close of business on July 24, 2026. Earnings Guidance The table below provides estimates for significant components of our 2026 earnings guidance. CEO Comments "We are very pleased with our record performance during the first half of the year, as we posted the most active investment quarter and first half in Company history," said Joey Agree, President and Chief Executive Officer. "With our portfolio continuing to perform exceptionally well, a fortress balance sheet backed by $1.9 billion of liquidity, and robust activity across all three of our external growth platforms, we are increasing full-year 2026 investment guidance to a range of $1.6 billion to $1.8 billion and raising 2026 AFFO per share guidance to a range of $4.57 to $4.59." Portfolio Update As of June 30, 2026, the Company’s portfolio consisted of 2,825 properties located in all 50 states and the District of Columbia, comprised of approximately 59.6 million square feet of gross leasable area. At quarter end, the portfolio was approximately 99.8% leased, had a weighted-average lease term of approximately 7.7 years, and generated approximately 65.8% of annualized base rents from investment grade retail tenants. Ground Lease Portfolio During the second quarter, the Company acquired nine ground leases for an aggregate purchase price of approximately $66.6 million, representing 13.5% of annualized base rents acquired. As of June 30, 2026, the Company’s ground lease portfolio consisted of 268 leases located in 39 states and the District of Columbia and totaled approximately 7.7 million square feet of gross leasable area. Properties ground leased to tenants represented 10.2% of annualized base rents. At quarter end, the ground lease portfolio was fully occupied, had a weighted-average lease term of approximately 8.9 years, and generated 85.0% of annualized base rents from investment grade retail tenants. Acquisitions Total acquisition volume for the second quarter was approximately $451.5 million and included 82 properties net leased to leading retailers operating in sectors including auto parts, home improvement, grocery stores, farm and rural supply, and convenience stores. The properties are located in 32 states and the District of Columbia and leased to tenants operating in 23 sectors. The properties were acquired at a weighted-average capitalization rate of 7.0% and had a weighted-average lease term of approximately 11.2 years. Approximately 73.2% of annualized base rents acquired were generated from investment grade retail tenants. For the six months ended June 30, 2026, total acquisition volume was approximately $854.0 million. The 167 acquired properties are located in 38 states and the District of Columbia and leased to tenants who operate in 27 retail sectors. The properties were acquired at a weighted-average capitalization rate of 7.0% and had a weighted-average lease term of approximately 11.2 years. Approximately 66.6% of annualized base rents were generated from investment grade retail tenants. Dispositions During the second quarter, the Company sold 14 properties for gross proceeds of approximately $30.3 million. The dispositions were completed at a weighted-average capitalization rate of 7.1%. During the six months ended June 30, 2026, the Company sold 21 properties for gross proceeds of approximately $40.9 million. The dispositions were completed at a weighted-average capitalization rate of 7.0%. Development and Developer Funding Platform During the second quarter, the Company commenced five development or DFP projects, with total anticipated costs of approximately $87.5 million. Construction continued during the quarter on 10 projects with anticipated costs totaling approximately $83.4 million. The Company completed one project during the quarter with total costs of approximately $6.5 million. For the six months ended June 30, 2026, the Company had 20 development or DFP projects completed or under construction with anticipated total costs of approximately $199.9 million. The projects are leased to leading retailers including 7-Eleven, TJX Companies, Burlington, Boot Barn, Gerber Collision, Starbucks, and Sunbelt Rentals. The following table presents estimated costs for the Company's active or completed development and DFP projects for the six months ended June 30, 2026: Leasing Activity and Expirations During the second quarter, the Company executed new leases, extensions or options on approximately 763,000 square feet of gross leasable area throughout the existing portfolio. Notable new leases, extensions or options included a 130,000-square foot Sam's Club in Timonium, Maryland and a 150,000-square foot Walmart Supercenter in Perry, Georgia. For the six months ended June 30, 2026, the Company executed new leases, extensions or options on approximately 1.6 million square feet of gross leasable area throughout the existing portfolio. As of June 30, 2026, the Company’s 2026 lease maturities represented 0.4% of annualized base rents. The following table presents contractual lease expirations within the Company’s portfolio as of June 30, 2026, assuming no tenants exercise renewal options: Top Tenants The following table presents annualized base rents for all tenants that represent 1.5% or greater of the Company’s total annualized base rent as of June 30, 2026: Retail Sectors The following table presents annualized base rents for all the Company’s retail sectors as of June 30, 2026: Geographic Diversification The following table presents annualized base rents for all states that represent 1.5% or greater of the Company’s total annualized base rent as of June 30, 2026: Capital Markets, Liquidity and Balance Sheet Capital Markets In June 2026, the Company drew the remaining $100.0 million under its $350.0 million unsecured term loan that matures in May 2031 (the "2031 Unsecured Term Loan"). Including the impact of forward starting swaps, the all-in interest rate on the 2031 Unsecured Term Loan is fixed at 4.02% until maturity. During the second quarter, the Company entered into forward sale agreements in connection with its ATM program to sell an aggregate of 0.4 million shares of common stock for anticipated net proceeds of $31.1 million. Additionally, the Company settled 4.3 million shares under existing forward sale agreements for net proceeds of $313.3 million. The following table presents the Company’s outstanding forward equity offerings as of June 30, 2026: Liquidity As of June 30, 2026, the Company had total liquidity of approximately $1.9 billion, which includes $753.0 million of availability under its revolving credit facility after adjusting for outstanding commercial paper notes, $1.1 billion of outstanding forward equity, and $21.2 million of cash on hand. The Company’s $1.25 billion revolving credit facility includes an accordion option that allows the Company to request additional lender commitments of up to a total of $2.0 billion. Balance Sheet As of June 30, 2026, the Company’s net debt to recurring EBITDA was 5.2 times. The Company’s proforma net debt to recurring EBITDA was 3.7 times when deducting the $1.1 billion of anticipated net proceeds from the outstanding forward equity offerings from the Company’s net debt of approximately $3.8 billion as of June 30, 2026. The Company’s fixed charge coverage ratio was 4.1 times at quarter end. The Company’s net debt to enterprise value was 28.5% as of June 30, 2026. For the three and six months ended June 30, 2026, the Company's fully diluted weighted-average shares outstanding were 120.5 million and 120.4 million, respectively. The basic weighted-average shares outstanding for the three and six months ended June 30, 2026 were 120.0 million and 119.9 million, respectively. For the three and six months ended June 30, 2026, the Company's fully diluted weighted-average shares and units outstanding were 120.8 million and 120.8 million, respectively. The basic weighted-average shares and units outstanding for the three and six months ended June 30, 2026 were 120.3 million and 120.3 million, respectively. The Company’s assets are held by, and its operations are conducted through, the Operating Partnership, of which the Company is the sole general partner. As of June 30, 2026, there were 347,619 Operating Partnership common units outstanding, and the Company held a 99.7% common interest in the Operating Partnership. Conference Call/Webcast The Company will host its quarterly analyst and investor conference call on Friday, July 31, 2026 at 10:00 AM ET. To participate in the conference call, please dial (833) 461-5787 approximately ten minutes before the call begins. Additionally, a webcast of the conference call will be available via the Company’s website. To access the webcast, visit www.agreerealty.com five minutes prior to the start of the conference call and go to the Investors section of the website. A replay of the conference call webcast will be archived and available online through the Investors section of www.agreerealty.com. About Agree Realty Corporation Agree Realty Corporation is a publicly traded real estate investment trust that is RETHINKING RETAIL through the acquisition and development of properties net leased to industry-leading, omni-channel retail tenants. As of June 30, 2026, the Company owned and operated a portfolio of 2,825 properties, located in all 50 states and the District of Columbia, comprised of approximately 59.6 million square feet of gross leasable area. The Company’s common stock is listed on the New York Stock Exchange under the symbol "ADC". For additional information on the Company and RETHINKING RETAIL, please visit www.agreerealty.com. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe the Company’s future plans, strategies and expectations, are generally identifiable by use of the words "anticipate," "estimate," "should," "expect," "believe," "intend," "may," "will," "seek," "could," "project" or other similar words or expressions. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the Company’s control and which could materially affect the Company’s results of operations, financial condition, cash flows, performance or future achievements or events. Factors which may cause actual results to differ materially from current expectations include, but are not limited to, the factors included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, including those set forth under the headings "Business," "Risk Factors," and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" and subsequent quarterly reports filed with the SEC. The forward-looking statements included in this press release are made as of the date hereof. Unless legally required, the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events, changes in the Company’s expectations or assumptions or otherwise. For further information about the Company’s business and financial results, please refer to the "Management’s Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of the Company’s SEC filings, including, but not limited to, its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, copies of which may be obtained at the Investor Relations section of the Company’s website at www.agreerealty.com. Glossary AFFO Payout Ratio is calculated as common dividends per share divided by AFFO per share for the same period. The Company believes this measure is a useful supplemental indicator of dividend coverage and the sustainability of its dividend policy. This measure is not a substitute for measures prepared in accordance with GAAP, and the Company’s calculation may differ from similarly titled measures used by other companies. Annualized Base Rent ("ABR") represents the annualized amount of contractual minimum rent required by tenant lease agreements as of June 30, 2026, computed on a straight-line basis. Annualized Base Rent is not, and is not intended to be, a presentation in accordance with GAAP. The Company believes annualized contractual minimum rent is useful to management, investors, and other interested parties in analyzing concentrations and leasing activity. Enterprise Value is calculated as the sum of net debt, the liquidation value of the Company’s preferred stock, and the market value of the Company’s outstanding shares of common stock, assuming the conversion of Agree Limited Partnership common units into common stock. Fixed Charge Coverage Ratio is calculated as Trailing Twelve Month ("TTM") Fixed Charge EBITDA divided by TTM Fixed Charges. TTM Fixed Charge EBITDA represents TTM EBITDA adjusted for straight-line rent and capital expenditure adjustments, and TTM Fixed Charges consist of interest expense, preferred share dividend payments, and scheduled principal payments. The Company believes this measure is a useful supplemental indicator of its ability to service fixed financial obligations, though it is not a substitute for measures prepared in accordance with GAAP and may not be comparable to similarly titled measures used by other companies. Investment Grade ("IG") refers to ABR derived from tenants, or parent or subsidiary entities thereof, that have an investment grade credit rating from S&P Global Ratings, Moody’s Investors Service, Fitch Ratings, or the National Association of Insurance Commissioners ("NAIC"). Net Debt to Enterprise Value represents the ratio of the Company’s net debt to its Enterprise Value and is used to evaluate the Company’s capital structure and balance sheet leverage. Occupancy equals the sum of leased square feet divided by gross leasable area. Excludes properties under redevelopment. Weighted-Average Capitalization Rate for acquisitions and dispositions, it is defined as the sum of contractual fixed annual rents computed on a straight-line basis over the primary lease terms and anticipated annual net tenant recoveries, divided by the purchase and sale prices for occupied properties. Weighted-Average Lease Term ("WALT") represents the remaining contractual lease term of in‑place leases, weighted by ABR, and excludes vacant properties and lease extension options. References to "Core FFO" and "AFFO" in this press release are representative of Core FFO attributable to OP common unitholders and AFFO attributable to OP common unitholders. Detailed calculations for these measures are shown in the Reconciliation of Net Income to FFO, Core FFO and Adjusted FFO table as "Core Funds From Operations – Operating Partnership Common Unitholders" and "Adjusted Funds from Operations – Operating Partnership Common Unitholders". Non-GAAP Financial Measures Funds from Operations ("FFO" or "Nareit FFO") FFO is defined by the National Association of Real Estate Investment Trusts, Inc. ("Nareit") to mean net income computed in accordance with GAAP, excluding gains (or losses) from sales of real estate assets and/or changes in control, plus real estate related depreciation and amortization and any impairment charges on depreciable real estate assets, and after adjustments for unconsolidated partnerships and joint ventures. Historical cost accounting for real estate assets in accordance with GAAP implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, most real estate industry investors consider FFO to be helpful in evaluating a real estate company’s operations. FFO should not be considered an alternative to net income as the primary indicator of the Company’s operating performance, or as an alternative to cash flow as a measure of liquidity. Further, while the Company adheres to the Nareit definition of FFO, its presentation of FFO is not necessarily comparable to similarly titled measures of other REITs due to the fact that all REITs may not use the same definition. Core Funds from Operations ("Core FFO") The Company defines Core FFO as Nareit FFO with the addback of (i) noncash amortization of acquisition purchase price related to above- and below- market lease intangibles and discount on assumed debt and (ii) certain infrequently occurring items that reduce or increase net income in accordance with GAAP. Management believes that its measure of Core FFO facilitates useful comparison of performance to its peers who predominantly transact in sale-leaseback transactions and are thereby not required by GAAP to allocate purchase price to lease intangibles. Unlike many of its peers, the Company has acquired the substantial majority of its net-leased properties through acquisitions of properties from third parties or in connection with the acquisitions of ground leases from third parties. Core FFO should not be considered an alternative to net income as the primary indicator of the Company’s operating performance, or as an alternative to cash flow as a measure of liquidity. Further, the Company’s presentation of Core FFO is not necessarily comparable to similarly titled measures of other REITs due to the fact that all REITs may not use the same definition. Adjusted Funds from Operations ("AFFO") AFFO is a non-GAAP financial measure of operating performance used by many companies in the REIT industry. AFFO further adjusts FFO and Core FFO for certain non-cash items that reduce or increase net income computed in accordance with GAAP. Management considers AFFO a useful supplemental measure of the Company’s performance, however, AFFO should not be considered an alternative to net income as an indication of its performance, or to cash flow as a measure of liquidity or ability to make distributions. The Company’s computation of AFFO may differ from the methodology for calculating AFFO used by other equity REITs, and therefore may not be comparable to such other REITs. Financial Measures Total Debt and Net Debt The Company defines Total Debt as debt per the consolidated balance sheet excluding unamortized debt issuance costs, original issue discounts and debt discounts. Net Debt is defined as Total Debt less cash, cash equivalents and cash held in escrows. The Company considers the non-GAAP measures of Total Debt and Net Debt to be key supplemental measures of the Company's overall liquidity, capital structure and leverage because they provide industry analysts, lenders and investors useful information in understanding our financial condition. The Company's calculation of Total Debt and Net Debt may not be comparable to Total Debt and Net Debt reported by other REITs that interpret the definitions differently than the Company. The Company presents Net Debt on both an actual and proforma basis, assuming the net proceeds of the Forward Equity Offerings (see below) are used to pay down debt. The Company believes the proforma measure may be useful to investors in understanding the potential effect of the Forward Equity Offerings on the Company's capital structure, its future borrowing capacity, and its ability to service its debt. Forward Equity Offerings The Company has 14,484,843 shares remaining to be settled under the Forward Equity Offerings. Upon settlement, the offerings are anticipated to raise net proceeds of approximately $1.1 billion based on the applicable forward sale price as of June 30, 2026. The applicable forward sale price varies depending on the offering. The Company is contractually obligated to settle the offerings by certain dates between October 2026 and April 2028. EBITDAre EBITDAre is defined by Nareit to mean net income computed in accordance with GAAP, plus interest expense, income tax expense, depreciation and amortization, any gains (or losses) from sales of real estate assets and/or changes in control, any impairment charges on depreciable real estate assets, and after adjustments for unconsolidated partnerships and joint ventures. The Company considers the non-GAAP measure of EBITDAre to be a key supplemental measure of the Company's performance and should be considered along with, but not as an alternative to, net income or loss as a measure of the Company's operating performance. The Company considers EBITDAre a key supplemental measure of the Company's operating performance because it provides an additional supplemental measure of the Company's performance and operating cash flow that is widely known by industry analysts, lenders and investors. The Company’s calculation of EBITDAre may not be comparable to EBITDAre reported by other REITs that interpret the Nareit definition differently than the Company. Recurring EBITDA The Company defines Recurring EBITDA as EBITDAre with the addback of noncash amortization of above- and below- market lease intangibles, and after adjustments for the run-rate impact of the Company's investment and disposition activity for the period presented, as well as adjustments for non-recurring benefits or expenses. The Company considers the non-GAAP measure of Recurring EBITDA to be a key supplemental measure of the Company's performance and should be considered along with, but not as an alternative to, net income or loss as a measure of the Company's operating performance. The Company considers Recurring EBITDA a key supplemental measure of the Company's operating performance because it represents the Company's earnings run rate for the period presented and because it is widely followed by industry analysts, lenders and investors. Our Recurring EBITDA may not be comparable to Recurring EBITDA reported by other companies that have a different interpretation of the definition of Recurring EBITDA. Our ratio of net debt to Recurring EBITDA is used by management as a measure of leverage and may be useful to investors in understanding the Company’s ability to service its debt, as well as assess the borrowing capacity of the Company. Our ratio of net debt to Recurring EBITDA is calculated by taking annualized Recurring EBITDA and dividing it by our net debt per the consolidated balance sheet. Annualized Net Income Represents net income for the three months ended June 30, 2026, on an annualized basis. View source version on businesswire.com: https://www.businesswire.com/news/home/20260730468835/en/ Contacts Peter CoughenourChief Financial OfficerAgree Realty Corporation(248) 737-4190

Annaly Capital Management Inc. NLY is scheduled to report second-quarter 2026 results on July 21, after market close. The company’s net interest income (NII) and earnings are expected to reflect year-over-year increases in the quarter to be reported. In the last reported quarter, the mortgage real estate investment trust's earnings available for distribution per share surpassed the Zacks Consensus Estimate. The company's net interest income and net interest margin improved year over year. The year-over-year increase in book value per share was also encouraging. Annaly has an impressive earnings surprise history. The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 2.07%. Annaly Capital Management Inc price-eps-surprise | Annaly Capital Management Inc Quote Let us see how things have shaped up before the second-quarter earnings announcement. The consensus estimate for second-quarter NII is pegged at $509 million, suggesting an 86.3% increase from the year-ago quarter's reported NII. The Zacks Consensus Estimate for earnings has been revised upward to 75 cents over the past seven days. The estimate indicates a 2.7% increase from the year-ago quarter's actual. The Federal Reserve kept interest rates unchanged in the second quarter of 2026, while noting that economic activity continued to expand at a solid pace despite elevated uncertainty and inflation remaining above its 2% target. Throughout the quarter, mortgage rates remained elevated, averaging in the mid-6% range. While refinance activity witnessed a modest pickup as rates briefly declined during parts of the quarter, purchase volume remained under pressure due to constrained housing inventory and elevated home prices. Given this backdrop, NLY's mortgage-backed securities (MBS) portfolio is likely to have faced continued interest-rate volatility and fluctuating agency MBS spreads during the quarter. Sharp movements in U.S. Treasury yields amid changing expectations around inflation and Federal Reserve policy likely contributed to volatility in MBS valuations. This might have pressured the company's book value performance in the second quarter of 2026. Although mortgage rates temporarily eased during parts of the quarter, they generally remained well above the levels of most outstanding mortgages, keeping refinancing incentives relatively subdued. As a result, NLY's constant prepayment rates are expected to have remained relatively contained, helping moderate premium amortization expenses and support NII. Stable prepayments, along with attractive reinvestment opportunities at higher yields, are also likely to have supported average asset yields during the second quarter. Given manageable prepayment speeds during the second quarter, the company's mortgage servicing rights portfolio is likely to have benefited to some extent. This is anticipated to have increased NLY's servicing fees in the quarter to be reported. The Zacks Consensus Estimate for net servicing income of $167.7 million indicates a year-over-year rise of 31.9%. Our proven model predicts an earnings beat for NLY this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is exactly the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. Earnings ESP: Annaly has an Earnings ESP of +0.33%. Zacks Rank: NLY currently carries a Zacks Rank of 2. Here are a couple of REIT stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time: NETSTREIT Corp. NTST is expected to release second-quarter 2026 earnings on July 22. The company has an Earnings ESP of +1.94 and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Quarterly earnings estimates for NETSTREIT have been unchanged at 34 cents per share over the past week. Agree Realty Corporation ADC is expected to release second-quarter 2026 earnings on July 30. The company has an Earnings ESP of +0.27% and a Zacks Rank #3 at present. Quarterly earnings estimates for Agree Realty have been unchanged at $1.13 per share over the past week. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Annaly Capital Management Inc (NLY) : Free Stock Analysis Report Agree Realty Corporation (ADC) : Free Stock Analysis Report NETSTREIT Corp. (NTST) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Realty Income’s O recently released first-quarter results gave investors a familiar mix: steady rent collection, dependable dividends, and a larger investment pipeline, but also only moderate per-share growth. For a stock known as “The Monthly Dividend Company,” the question is less about survival and more about whether the latest results are strong enough to justify buying more. We chose to wait before publishing our review, giving the stock’s recent trading pattern time to show whether investors were becoming more confident or simply staying cautious. What we found is that Realty Income’s share price has been firm overall, but the move looks more measured than aggressive. The stock recently traded near $61.96, after a small daily gain, though it remains below its 52-week high, showing that investors are still selective rather than fully bullish. The likely reason is not just first-quarter earnings. Realty Income is benefiting from demand for steady dividend payers, its roughly 5% yield, and hopes that REITs could regain favor if interest-rate pressure eases. At the same time, higher borrowing costs and modest growth expectations continue to limit enthusiasm. Textually, the first quarter was a solid one. Revenues rose to $1.55 billion, and AFFO per share increased 6.6% to $1.13. Management also lifted full-year adjusted funds from operations (AFFO) and investment guidance, which suggests confidence in the rest of 2026. While the company’s strategic investments augur well for long-term growth, its investment thesis presents both compelling growth drivers and legitimate concerns. Let’s explore them to ultimately arrive at the decision of whether to hold the stock for now, buy or sell and book profits. Realty Income’s earnings were strong enough to support a constructive view, especially for income-focused investors. AFFO per share rose to $1.13 from $1.06 a year earlier. The company’s results were helped by rental income, interest income from credit investments, and active asset management. Importantly, the dividend payout ratio was manageable at 71.7% of AFFO, leaving a cushion for reinvestment and balance sheet needs. The biggest positive was capital deployment. Realty Income invested $2.8 billion, or $2.6 billion on a pro-rata basis, at a 7.1% initial weighted average cash yield. The mix included real estate acquisitions, development activity, and more than $1.0 billion of other investments, including loans in the United States, Europe and Mexico. Management also raised 2026 investment volume guidance to $9.5 billion, up from $8.0 billion, which points to a healthy pipeline. The balance sheet still looks solid for a large net lease REIT. Realty Income ended the quarter with $3.9 billion of liquidity on a pro-rata basis and net debt to annualized pro forma adjusted EBITDAre of 5.2x. Its investor presentation also highlights A3/A- credit ratings, 92.7% fixed-rate debt, and a 5.9-year weighted average term to maturity for notes and bonds. That financial position matters because it allows the company to keep investing even when capital markets are uneven. Operationally, Realty Income continues to show why investors treat it as a defensive REIT. The company owned or held interests in 15,571 properties, leased to 1,786 clients across 92 industries, with portfolio occupancy of 98.9% and a weighted average remaining lease term of about 8.7 years. Rent recapture on re-leased properties was 103.4%, suggesting the company is not simply filling space, but doing so at attractive economics. The concern is valuation versus growth. Even with a strong quarter, same-store rental revenue increased only 0.8%, and revised AFFO guidance of $4.41 to $4.44 implies annual per-share growth of only 3.0% to 3.7%. That is respectable, but not high. Management raised AFFO guidance, while keeping same-store rent growth guidance at 1.0% to 1.3% and occupancy near 98.5%. The company is also leaning more into private capital partnerships and credit investments, which may improve returns but add complexity for investors who prefer the simple legacy net lease model. Nevertheless, dividends remain the main attraction. The company recently declared its 671st consecutive monthly dividend yesterday, keeping the payout at 27.05 cents per share, or $3.246 annualized. Earlier in March, it marked its 134th dividend increase since listing on the NYSE, a record that keeps income investors watching closely. Check Realty Income’s dividend history here. Over the past 30 days, while FFO per share estimates for the second quarter have remained unchanged, the same for both 2026 and 2027 have been revised slightly downward, indicating a balanced view of growth and cost pressures. Image Source: Zacks Investment Research So far this year, Realty Income stock has gained 9.9%, but underperformed the Zacks REIT and Equity Trust - Retail industry and the S&P 500 Composite. However, O stock has outpaced its close peers, like Agree Realty Corporation ADC and Essential Properties Realty Trust, Inc. EPRT. Image Source: Zacks Investment Research Valuation-wise, Realty Income stock is trading at a forward 12-month price-to-FFO of 13.72X, below the retail REIT industry average of 16.58X but ahead of its three-year median. O stock is also currently trading at a reasonable discount compared with its industry peers, Agree Realty Corporation and Essential Properties Realty Trust. This valuation disparity might not be as favorable as it seems. Agree Realty is trading at a forward 12-month price-to-FFO of 16.25X, while Essential Properties Realty Trust is trading at 14.67X. The Value Score of D suggests that Realty Income may not be a bargain at current levels. Still, the company’s strategic investments, consistent dividend growth, underpinned by predictable rental income, keep it appealing for long-term income-oriented investors. Image Source: Zacks Investment Research Realty Income’s first-quarter results were good, but not game-changing. The company delivered higher AFFO, strong occupancy, active investment volume, healthy liquidity, and solid dividend. Those are real positives, especially for investors who own the stock for monthly income and lower drama. Still, growth remains modest, and the stock does not look like an obvious bargain after the update. Estimate revisions and valuation also point in the same direction, and therefore, for new investors, patience may be better than chasing. For current shareholders, the dividend and operating stability remain enough reasons to stay invested. At present, Realty Income carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Realty Income Corporation (O) : Free Stock Analysis Report Agree Realty Corporation (ADC) : Free Stock Analysis Report Essential Properties Realty Trust, Inc. (EPRT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Realty Income Corporation O, a leader in the net lease sector, is slated to release first-quarter 2026 results on May 6, after market close. The Zacks Consensus Estimate for the to-be-reported quarter’s adjusted funds from operations (AFFO) and revenues is pegged at $1.10 per share and $1.50 billion, respectively. The Zacks Consensus Estimate for first-quarter 2026 AFFO per share has been revised a cent upward to $1.10 over the past two months, which suggests 3.77% growth year over year. The Zacks Consensus Estimate for quarterly revenues implies a notable year-over-year increase of 8.54%. Realty Income Estimate Revisions Image Source: Zacks Investment Research For the current year, the Zacks Consensus Estimate for Realty Income’s revenues is pegged at $6.20 billion, indicating a rise of 7.86% year over year. The consensus mark for 2026 AFFO per share stands at $4.45, calling for an expansion of around 3.97% on a year-over-year basis. Over the trailing four quarters, the company’s AFFO per share surpassed the Zacks Consensus Estimate on one occasion, met in the other two and missed in another. This is depicted in the graph below: Realty Income Corporation price-eps-surprise | Realty Income Corporation Quote Our proven model predicts a surprise in terms of AFFO per share for Realty Income this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an AFFO beat, which is the case here. You can see the complete list of today’s Zacks #1 Rank stocks here. Realty Income currently carries a Zacks Rank of 3 and has an Earnings ESP of +1.67%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Realty Income’s first-quarter 2026 earnings report is expected to show that the company experienced another steady operating period, aided by high occupancy, stable rent collections and disciplined investment activity. Investors will likely look for signs that the REIT’s core net-lease portfolio continued to hold up well despite a still-uneven rate and consumer backdrop. Management’s 2026 guidance sets the baseline. Realty Income is expected to have experienced modest AFFO per share growth, supported by same-store rent growth of 1-1.3% and occupancy near 98.5%. After ending 2025 with 98.9% occupancy and 103.9% rent recapture, the company is likely to have benefited from durable tenant demand and limited vacancy pressure. The consensus mark for rental revenues (excluding reimbursable) is pegged at $1.32 billion, nearly in line with the prior quarter and up from $1.23 billion in the year-ago quarter. The company is also expected to have experienced a healthy start to its acquisition year. Realty Income guided for $8 billion of 2026 investment volume, above the $6.3 billion deployed in 2025. The first quarter should show whether the pipeline in the United States, Europe and adjacent investment channels began converting at attractive spreads. Realty Income is further expected to have seen a growing contribution from its broader capital platform. Its GIC build-to-suit partnership, Mexico industrial entry, U.S. private fund, Blackstone-related CityCenter investment and Apollo retail JV are all designed to widen the investment funnel while reducing dependence on public equity. On the balance sheet side, the company is expected to have experienced a continued focus on liquidity, funding costs and leverage control. Recent debt transactions and its long dividend record suggest management remains focused on funding growth while preserving financial flexibility and supporting the monthly payout. Shares of Realty Income have rallied 12.6% so far in the year, closing at $63.45 yesterday on the NYSE. The Zacks REIT and Equity Trust - Retail industry has risen 18.4%, while the S&P 500 composite has increased 6% over the same time frame. While Realty Income has underperformed its industry, it has rallied more than its peers like Agree Realty Corporation ADC and Essential Properties Realty Trust, Inc. EPRT, as well as the S&P 500 composite. Year-to-Date Price Performance Image Source: Zacks Investment Research Valuation-wise, Realty Income trades at a forward price-to-FFO of 14.09X, below the retail REIT industry average of 16.76X and above its one-year median of 13.35X. O stock is also currently trading at a reasonable discount compared with its industry peers, Agree Realty Corporation and Essential Properties Realty Trust. However, this valuation disparity might not be as favorable as it seems. Agree Realty is trading at a forward 12-month price-to-FFO of 16.43X, while Essential Properties Realty Trust is trading at 14.88X. However, the Value Score of D suggests that Realty Income may not be a bargain at current levels. Forward 12 Month Price-to-FFO (P/FFO) Ratio Image Source: Zacks Investment Research Realty Income continues to appeal to investors seeking dependable income and lower-risk real estate exposure. Its large and well-diversified portfolio, focus on essential-service tenants and long-term net leases support steady rental cash flows across cycles. The company’s move into areas beyond traditional retail also adds flexibility to its growth platform. Backed by a solid dividend yield and an investment-grade balance sheet, Realty Income remains one of the more defensive names in the REIT space. That said, its dependable model also keeps growth measured. Same-store rent gains are usually modest, and long lease terms can limit earnings upside when the economy strengthens. Its broad diversification lowers risk but may also dilute exposure to faster-growing property segments, likely keeping near-term upside in check. Given this balanced setup, maintaining a position looks sensible. Existing shareholders can rely on consistent dividends, while potential investors may prefer to wait for a better entry point. Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Realty Income Corporation (O) : Free Stock Analysis Report Agree Realty Corporation (ADC) : Free Stock Analysis Report Essential Properties Realty Trust, Inc. (EPRT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Agree invested nearly $425 million in Q1—including $403 million of acquisitions across 100 properties (its largest quarterly acquisition volume since 2022)—with acquired assets averaging a 7.1% cap rate, 11.3-year leases, portfolio occupancy at 99.7%, and >65% investment-grade exposure. The company said its development and developer-funding pipeline is growing “significantly” and is expected to ramp meaningfully in Q2–Q3, with a real chance to hit its intermediate goal of $250 million of annual development commencements this year. Agree raised about $658 million of forward equity in Q1 and reports roughly $2.3 billion of liquidity (pro forma net debt/recurring EBITDA ~3.2x), reiterated 2026 AFFO guidance of $4.54–$4.58 while increasing forward-equity dilution assumptions by $0.02–$0.04, and raised its monthly dividend to $0.267 (annualized > $3.20). Interested in Agree Realty Corporation? Here are five stocks we like better. 3 Stocks to Buy After Heavy Insider Buying Agree Realty (NYSE:ADC) executives highlighted a busy start to 2026, pointing to strong acquisition volume, a growing development pipeline, and what management described as a “fortress” balance sheet as the company reiterated full-year earnings guidance while adjusting for higher forward-equity dilution assumptions. President and CEO Joey Agree said the company invested nearly $425 million across its “three external growth platforms” during the first quarter, including $403 million of acquisitions—its largest quarterly acquisition volume since 2022. Agree said the company completed investments in 100 properties during the quarter. → Credo Stock Flashes Strong Bullish Signal—Upswing Just Starting Agree detailed several transaction highlights, including a sale-leaseback with Hobby Lobby involving its corporately owned stores. The quarter’s acquisitions also included a Home Depot, five Wawa ground leases in Pennsylvania and Maryland, a portfolio of 11 Sherwin-Williams stores, several Aldi properties, and three Walmart locations in Georgia and South Carolina. Agree said the acquired properties carried a weighted average cap rate of 7.1% and a weighted average lease term of 11.3 years. Nearly 60% of acquired base rent came from investment-grade retailers, he added, and the company continued to increase its ground lease exposure. → Allbirds Exits Shoes, Pivots to AI With NewBird Rebrand On dispositions, Agree Realty sold seven properties for about $11 million of gross proceeds at a weighted average cap rate of 6.8%. Agree noted the sales included a Jiffy Lube and Dutch Bros that had been part of a grocery-portfolio acquisition last year, and said the company sold those outparcels “approximately 300 basis points inside of where we acquired them less than one year ago,” framing it as an example of opportunistic capital recycling. From an operating standpoint, Agree said the company executed new leases, extensions, or options on more than 876,000 square feet of gross leasable area with a recapture rate above 104%. He said upcoming lease expirations remain limited, with 29 leases—about 90 basis points of annualized base rent—maturing for the remainder of the year. → Amazon Stock Up 30%: Is AMZN Still a Buy Before Earnings? Agree also pointed to a continued reduction in pharmacy exposure, ending the quarter at 3.5% of annualized base rent and outside the company’s top 10 sectors. Overall, the portfolio ended the quarter at 2,756 properties across all 50 states, including 261 ground leases representing more than 10% of annualized base rent. Investment-grade exposure stood above 65%, and occupancy was 99.7%. Agree said activity is increasing across the company’s development and developer funding platforms. During the quarter, the company commenced two new development or developer funding platform (DFP) projects totaling about $18 million of anticipated costs. Construction continued on nine projects (about $71 million of anticipated costs), and four projects were completed (about $23 million of investment). Agree said the development and DFP pipeline is growing “significantly” and is expected to “meaningfully ramp in the second and third quarters,” including projects that began after quarter end. In response to questions about construction costs and tenant demand, Agree said the company is seeing “absolutely no hesitancy on the part of tenants,” and described retailers as viewing stores as “the hub of an omnichannel world.” He added that projects are typically structured with guaranteed maximum price contracts and emphasized that the company is not “speculating on land” or small-tenant space, but rather building build-to-suit or ground-lease projects for large operators that are committed at closing. Asked about its previously discussed “intermediate goal” of $250 million of development commencements per year, Agree said there is “a chance we hit it this year,” noting first-quarter seasonality and that Q2 and Q3 are expected to be stronger, while also acknowledging that some projects depend on entitlement and municipal approvals. CFO Peter Coughenour said Agree Realty raised about $658 million of anticipated net proceeds in the first quarter by selling 8.7 million shares of forward equity through its at-the-market (ATM) program. At quarter end, the company had 18.4 million shares of outstanding forward equity expected to raise about $1.4 billion of net proceeds upon settlement. The company also drew $250 million on its previously announced $350 million delayed-draw term loan. Coughenour said forward-starting swaps were used to fix SOFR through the loan’s 2031 maturity, resulting in a fixed rate of 4.02%. He added the company entered into an additional $50 million of forward-starting swaps during the quarter, bringing total forward-starting swaps to $250 million, which he said effectively fixes the base rate for a contemplated 10-year unsecured debt issuance at roughly 4.1%. Coughenour said the company ended the quarter with about $2.3 billion of liquidity (including forward equity, revolver availability, term loan capacity, and cash). Pro forma for settlement of forward equity, net debt to recurring EBITDA was approximately 3.2x. He also cited debt to enterprise value under 29% and a fixed charge coverage ratio of 4.2x, and reiterated management’s comment that there are “no material debt maturities until 2028.” On settlement timing for forwards, Coughenour said roughly 8 million of the forward shares mature sometime this year and that, while contracts can be extended, he expects there is “a good chance that we settle those shares at or prior to maturity,” adding he would expect those shares “are likely settled at some point in 2026.” For the first quarter, Coughenour reported Core FFO per share of $1.13, up 8.1% from the prior-year quarter, and AFFO per share of $1.14, up 7.9% year over year, which he said was the highest quarterly AFFO per share growth since the second quarter of 2022. The company reiterated full-year 2026 AFFO per share guidance of $4.54 to $4.58, which implies about 5.4% year-over-year growth at the midpoint. However, management noted an update to dilution assumptions: Coughenour said treasury stock method dilution from outstanding forward equity is expected to reduce 2026 AFFO per share by $0.02 to $0.04, up from about $0.01 in prior guidance, due to both a higher share price and more forward equity outstanding. Percentage rent totaled about $2.4 million for the quarter, up from $1.6 million a year earlier. Coughenour said roughly one-third of the increase reflected strong same-store sales across the group of percentage-rent leases, with the remainder driven by timing, as some tenants that historically paid in Q2 contributed in Q1. Agree Realty declared monthly dividends of $0.262 per share for January through March, equating to an annualized dividend of more than $3.14 per share and a 3.6% year-over-year increase. Coughenour said the first-quarter payout ratio was 69% of AFFO per share. He also said the company expects more than $140 million of free cash flow after dividends this year, up more than 10% from last year. After quarter end, the company announced an increased monthly dividend of $0.267 per share for April, representing a 4.3% year-over-year increase and an annualized rate of more than $3.20 per share. Agree said the macro environment remains “highly unpredictable,” but argued that leading retailers are positioned to gain share in what he described as a “K-shaped economy.” In Q&A, he said the company’s decision on investment pace is “totally unilateral” and that it did not feel appropriate to raise investment guidance amid heightened uncertainty. On credit assumptions, Agree said there were “no anticipated closures” and described guidance assumptions as precautionary. Coughenour added that the company disclosed 14 basis points of credit and occupancy loss in the first quarter, while full-year guidance still assumes 25 to 50 basis points, implying greater loss in the remaining quarters; management said it was prudent to keep the range unchanged at this stage. Asked about 7‑Eleven store closures, Agree said he had “absolutely zero concerns,” adding the company had no 7‑Eleven stores closing in its portfolio. He described closures as involving older, smaller-format stores and contrasted them with larger-format convenience stores focused on food and beverage offerings. Agree said the convenience channel is evolving toward a model where inside-store sales drive profitability and suggested this evolution is playing out nationally. Agree also addressed investment-grade mix, noting that the quarter’s investment-grade percentage was affected by the inclusion of privately held Hobby Lobby, which the company does not count as investment grade because it is not rated. Agree described Hobby Lobby as a market leader with “zero” net debt and said it would be “a high investment grade operator” if it pursued a rating. Coughenour also noted in response to a question about ownership type that 77% of the portfolio’s annualized base rent comes from publicly traded tenants, with the remainder from various forms of private ownership; he said private equity is a “small component” within that private bucket. On pricing, Agree said he has not seen meaningful movement in cap rates over the past 18 to 20 months, and said the volatility in the 10-year Treasury has not materially changed market pricing in his view. Agree Realty Corporation (NYSE: ADC) is a publicly traded real estate investment trust headquartered in Chicago, Illinois. Founded in 1971, the company converted to a REIT structure in 2013 and focuses on acquiring, developing and managing a diversified portfolio of retail properties under long-term, triple-net (NNN) leases. Its tenant roster spans national and regional retailers in sectors such as grocery, home improvement, convenience and specialty retail. Agree Realty's primary business activities include sourcing and underwriting new property acquisitions, originating build-to-suit projects and executing value-add redevelopment programs. The article "Agree Realty Q1 Earnings Call Highlights" was originally published by MarketBeat.