ADC Stock: Agree Realty Monthly Dividend vs AFFO, Tenants and Debt (2026)

Is ADC the same as Agree Realty?

Yes. ADC is the New York Stock Exchange ticker of Agree Realty Corporation, a Maryland corporation based in Royal Oak, Michigan, SEC CIK 917251. The filings we read from 2024 to 2026 use the same name and ticker, and the same business: single-tenant retail properties on long-term net leases, where in the company's words the tenant pays “all property operating expenses, including real estate taxes, insurance and maintenance.” The assets sit in Agree Limited Partnership, in which the company holds a 99.7% common interest; a separate security, the 4.25% Series A preferred (ticker ADCPrA), is $175 million at liquidation value. Searches for “adc stock”, “agree realty stock” and “agree realty dividend” are the same company. For the other large listed net-lease names see our pages on Realty Income, NNN REIT and W. P. Carey.

The filing status matters for anyone looking up numbers. The latest 10-Q on EDGAR is for the quarter ended June 30, 2026, filed July 30, 2026 together with the Q2 release. The latest filing we found is an 8-K dated October 2, 2026 with the weighted-average share count for the third quarter. As of October 18, 2026 the 10-Q for the quarter ended September 30, 2026 is not filed. In a September 30 news release the company said it will publish third-quarter results after the market closes on Tuesday, October 20, 2026, with a conference call on Wednesday, October 21 at 9:00 AM ET; last year's Q3 results and 10-Q came out on October 21, 2025. Everything below is as of June 30, 2026 unless stated.

The dividend against AFFO, quarter by quarter

ADC pays monthly. The table puts what it declared each quarter, three monthly dividends, next to the earnings measures it reports. AFFO is a non-GAAP measure the company defines; Core FFO is the company's own version of FFO, which adds back non-cash amortization of above- and below-market lease intangibles. The payout ratio in the fifth column is the company's: common dividends per share divided by AFFO per share.

Four readings the quote pages do not make.

The dividend rises in small steps, twice a year or so. The monthly dividend was $0.253 in Q4 2024, $0.256 from April 2025, $0.262 from October 2025 and $0.267 from April 2026: raises of 1.2%, 2.3% and 1.9% (our arithmetic). The annualized amount the company states is $3.204, up 4.3% on $3.072 a year earlier, and the dividends declared for the full year were $2.805 in 2022, $2.919 in 2023, $3.000 in 2024 and $3.081 in 2025. Dividends go to holders of record at the end of a month and are paid about two weeks later; the January 2026 dividend, for example, was payable on February 13 to holders of record on January 30. The supplemental counts 172 consecutive dividends paid, 65 monthly and 107 quarterly, and a 10-year dividend growth rate of 5.3%.

Which earnings measure you use moves the payout by seven points. Core FFO adds back $11.3 million in Q2 2026 ($8.6 million a year earlier) of non-cash amortization of above- and below-market lease intangibles. The company explains why: it buys most properties from third parties, so purchase price is allocated to lease intangibles, which it says is unlike many of its peers. The effect is that Nareit FFO was $1.03 a share in Q2 2026 while Core FFO was $1.13 and AFFO $1.14. Dividends declared were 77.8% of Nareit FFO in Q2 2026, 76.7% in the half and 79.2% in Q2 2025 (our arithmetic), against the 70.1% the company prints. Neither is wrong; the AFFO payout is the one to compare with the company's own history, and the FFO payout is the one to compare with REITs that do not add back this amortization.

GAAP earnings cover just over half of the dividend; cash covers it about 1.4 times. Net income per share was $0.44 in Q2 2026 against $0.801 declared, 54.9% (our arithmetic). What pays the dividend is operating cash flow: $276.1 million in the first half of 2026 against $190.5 million of common dividends, $3.7 million of preferred dividends and $0.6 million of distributions to minority holders, 1.42 times (our arithmetic; 1.45 times a year earlier, 1.44 times in 2025 and 1.38 times in 2024). That left $81.3 million of operating cash flow after distributions in the half to fund $870.0 million of property acquisitions and $83.0 million of development, which is why the company raised $312.9 million from stock, drew a $350.0 million term loan and borrowed more commercial paper.

On guidance the payout is about 70%, and the company has beaten its range before. The 2026 AFFO range was raised on July 30 from $4.54-$4.58 to $4.57-$4.59. If the $0.267 monthly dividend continues through December, 2026 dividends declared would be $3.189 a share, 3.5% above 2025's $3.081 and 69.6% of the $4.58 midpoint (our arithmetic). The company's guidance includes $0.02 to $0.04 of dilution from unsettled forward equity under the treasury stock method. In 2025 the initial range was $4.26 to $4.30 and the result was $4.33, which is above the top of the first range and equal to the top of the last one.

Guidance: raised three times in 2025, once so far in 2026

The 2026 midpoint of $4.58 is 5.8% above 2025's $4.33 (our arithmetic). Investment volume is the lever: $925 million was invested in the first half, so the new $1.6 to $1.8 billion range needs $675 million to $875 million in the second half (our arithmetic). Dispositions are small, $50 million to $100 million guided, against $40.9 million sold in the first half at a 7.0% cap rate. The company calls its Q2 and first-half investment “a Company record”: $502 million in Q2 and $925 million in the half.

What changed in the portfolio over eight quarters

Three trends run in opposite directions. Concentration is falling: the top 10 tenants went from 37.2% to 34.6% of ABR. Credit quality is drifting down slowly: investment grade went from a high of 68.3% at March 31, 2025 to 65.8%, and the lease term from 8.0 to 7.7 years. Losses are low: credit and occupancy loss, which the company defines as lost cash rent and incremental operating expense including partial payment or non-payment for any reason, was 0.06% in Q2 2026; the 0.53% of Q2 2025 was the peak of the eight quarters.

The rent in place barely grows by itself. The supplemental says “Trailing 8-quarter same-store rent growth has averaged >1%,” 91% of ABR has fixed rent increases, 7% is flat and 2% is tied to the CPI, and quarterly same-store growth swung from 0.2% (Q4 2025) to 1.6% (Q1 2026). The portfolio grows because the company buys: ABR is up 18.0% in a year, and 8.5% in the six months from $733.4 million to $795.7 million (our arithmetic).

Who pays the rent: tenants and their credit

The company publishes a credit rating next to each tenant that is at least 1.5% of ABR. Twenty tenants clear that bar and make up 54.9% of ABR, of which 85% is investment grade; the tenants below the bar are 45.1% of ABR and 42% investment grade. These are the first twelve:

Burlington (2.0%, down from 2.1%) is the one top-20 tenant the company classes as sub-investment grade. Hobby Lobby's share rose from 2.9% to 3.4%, from $20.9 million to $26.8 million of rent, in six months; the filings we read do not say whether that is new properties or rent changes. Hobby Lobby, Gerber Collision and Burlington add up to 8.1% of ABR (our arithmetic). The company's chart puts 66% of ABR in investment grade, 20% not rated and 14% sub-investment grade (rounded), so non-investment-grade rent is about 34%, and subtracting those three leaves about 26% from tenants of less than 1.5% each (our arithmetic, from rounded percentages). The 10-K lists “Avoidance of private equity sponsorship” among its four investment principles and warns, in a risk-factor heading, that “Our business is significantly dependent on single tenant properties.”

ADC's own ratings are Baa1 (Moody's), BBB+ (S&P) and A- (Fitch), all with stable outlooks; the company's Q3 2025 release says it achieved the Fitch A- rating that quarter. Sector and state spreads are wide for a net-lease REIT: the six largest of 32 retail sectors (grocery 10.1%, home improvement 9.0%, convenience stores 8.3%, tire and auto service 7.4%, auto parts 6.5%, dollar stores 6.2%) are 47.5% of ABR, and the five largest states (Texas 7.1%, Illinois 5.8%, Ohio 5.2%, Michigan 4.9%, New York 4.8%) are 27.8% (our arithmetic). Dollar General, the third-largest tenant, fell from 3.9% to 3.7% of ABR.

Lease expirations: 28.6% of rent through 2030

The table counts contractual lease expirations by calendar year as a share of ABR, assuming no tenant uses a renewal option.

Through 2030 the buckets add to 28.6% of ABR, down from 32.4% at December 31, 2025, and 2029 to 2031 alone are 27.5% (our arithmetic). The 2026 bucket fell from $10.7 million to $3.2 million and 2027 from $36.7 million to $29.9 million in six months, so renewals and early extensions are working through the near years while acquisitions added to the denominator. The company's recapture rate, the new rent on re-leased space against the old, was 105.0% in Q2 2026 and between 101.6% and 106.6% over eight quarters. The shorter term is partly a feature of what is owned today: acquisitions in Q2 2026 came with 11.2 years of term, while the whole portfolio is at 7.7 years.

Buying at 7.0%: acquisitions, cap rates and what they cost to fund

How the company defines the number matters. Its glossary builds the capitalization rate from “contractual fixed annual rents computed on a straight-line basis over the primary lease terms and anticipated annual net tenant recoveries,” divided by the price of occupied properties. A straight-line rate averages the rent steps over the term, so it is not the same as the first-year cash rate that NNN REIT and Realty Income report (7.3% for both in Q2 2026, on their own definitions; see the comparison below).

The spread is the business. The company paid a weighted 7.0% in Q2 2026. Its newest 10-year money, the $400 million of 5.650% notes due October 15, 2036, was priced at 98.497% of par, a yield of about 5.85% (our arithmetic, semiannual compounding), a gap of 1.15 points. On equity, the forward sales were struck at net prices of $74.04 to $77.78 a share, $74.90 on average; the $4.58 AFFO midpoint over the $75.74 closing price used in the 10-Q is 6.05%, and the dividend 4.23% (our arithmetic; the price is June 30 and not current). One more lens, from the company's own net asset value components: annualized adjusted cash NOI of $766.8 million over a total enterprise value of $13.45 billion is 5.70% (our arithmetic), so at that price the market capitalized the existing portfolio at less than the company's 7.0% purchase rate. The bases differ, because the NOI is cash and net of some expenses, the enterprise value includes property under development and the price is a quarter-end price, so read the gap as a direction and not a valuation.

Development and the Developer Funding Platform (DFP) add a third channel: 20 projects completed or under construction in the first half with anticipated costs of $199.9 million, $76.4 million of it still to be funded. Dispositions are marginal ($30.3 million in Q2, 14 properties) and sold at about the rate the company buys (7.1% in Q2). Of the $502 million invested in Q2 across the three platforms, $451.5 million was acquisitions of 82 properties.

Ground leases: 10% of rent, 85% investment grade

In a ground lease the tenant leases the land and normally owns the building on it, so the landlord's claim is to the land and its rent; the filings do not describe the legal terms of individual leases. ADC reports ground-leased properties separately every quarter.

The ground-lease book grew 8.5% in six months, as fast as total ABR (our arithmetic), so its share has stayed near 10%. It is the higher-credit part of the portfolio and it is concentrated in four tenants; Walmart, Lowe's, Home Depot and Wawa are also among the largest tenants overall.

Debt: $3.85 billion, 12.9% floating, and what comes due

At June 30, 2026 total debt principal was $3,849.3 million at a weighted average rate of 4.03%: $2,610.0 million of senior unsecured notes, $700.0 million of unsecured term loans, $497.0 million of commercial paper and $42.3 million of mortgage debt. 98.9% is unsecured, 87.1% fixed and 12.9% floating; the weighted-average maturity, excluding commercial paper, is 5.3 years. Net debt of $3,828.2 million is 5.2 times annualized recurring EBITDA of $736.1 million (4.9 times at December 31, 2025) and 3.7 times after deducting $1.08 billion of unsettled forward equity. Fixed charge coverage was 4.1 times. The 10-Q says the company was in compliance with all material covenants; under the public-bond covenants total indebtedness was 34.5% of total asset value against a 60% limit, and unencumbered assets were 292.4% of unsecured debt against a 150% minimum.

Three points from the filings.

• Little term debt falls due soon, but the cheap debt is the debt that does. Beyond the commercial paper only $50 million is due in 2027 and $410 million in 2028, at a 2.45% weighted rate, and $300 million in 2033 carries 2.13%. The 2034 and 2035 notes are at 5.65% and 5.35%, and the 2036 notes at 5.650%. As a sensitivity and not a forecast, refinancing the 2027 and 2028 maturities at 5.65% would add about $13.8 million a year of interest, $0.11 a share, 2.5% of the $4.58 midpoint (our arithmetic on 120.8 million diluted shares and units). Net interest expense was already $40.3 million in Q2 against $32.3 million, up 24.8%, while AFFO dollars were up 17.3% (our arithmetic).
• The commercial paper is the swing item. $497.0 million of commercial paper at 3.92% is 12.9% of debt. The company sets it against a revolver with $753.0 million of availability after the paper, and its pro forma leverage ratio assumes the $1.08 billion of forward equity proceeds is applied to debt. The September notes are for general corporate purposes, “including to fund property acquisitions and development activity or for the repayment or refinancing of outstanding indebtedness,” with expected net proceeds of about $390.1 million.
• The preferred stock is now callable. The $175 million 4.25% Series A is redeemable at $25.00 per depositary share from September 2026, per the 10-Q; we found no redemption notice among the filings through October 18.

Shares: the forward equity and what settles in October

ADC raises equity mostly through forward sales: it agrees today to sell shares at a price it receives when it chooses to settle, within a contractual window. The company is “contractually obligated to settle the offerings by certain dates between October 2026 and April 2028.” At June 30 the five batches still open were:

Three readings. First, size: 14,484,843 shares are 11.6% of the 124,381,214 outstanding at June 30, and if all settle the count is 138.9 million (our arithmetic). Second, timing: the first three batches, 5,722,117 shares for about $425.7 million (our arithmetic), carry an October 2026 contract date, so some or all may settle around the Q3 results; the October 2 8-K shows 124,565,976 weighted-average common shares in Q3, about 0.2 million above the June 30 count, and the filings do not say whether forward shares settled in the quarter. Third, cash: the 14.5 million forward shares would draw about $46.4 million a year of dividends at the $3.204 rate, while $1.08 billion applied against commercial paper at 3.92% saves about $42.5 million of interest (our arithmetic), so settlement is close to neutral to cash before the money is invested at a 7.0% cap rate. The company's AFFO guidance already includes $0.02 to $0.04 of treasury-stock dilution.

On April 24, 2026 the company replaced its October 2024 at-the-market program with a new program of up to $1.75 billion; none of the new program's shares had been sold by June 30. Common shares outstanding rose 3.6% in six months, from 120,028,406 to 124,381,214 (our arithmetic), and the first half's stock proceeds were $312.9 million.

ADC against NNN REIT and Realty Income

The two other large listed net-lease REITs report different definitions, so the table is for orientation, not a ranking. All figures are from each company's Q2 2026 release or supplemental.

On these numbers ADC has the shortest lease term of the three and the highest reported occupancy, with a payout between NNN's and Realty Income's. Our full pages: NNN REIT and Realty Income.

ADC against a private or non-traded net-lease vehicle

Readers of our pages on DSTs, ExchangeRight and the Fortress Net Lease REIT often want a listed benchmark. ADC publishes every quarter things a private sponsor often does not, and the right-hand column is the same question for a private vehicle. How listed and non-traded REITs differ in pricing and exit is in our comparison.

The comparison does not say listed is better. A listed REIT's price moves every day with the market even when rent does not, and a private vehicle's appraised value moves less because it is appraised. What it shows is a checklist: if a private vehicle cannot answer these rows the way ADC does, that is information.

What a holder or reader can do with this

This page is analysis of public documents, not investment, legal or tax advice. What the filings let you check yourself:

• Read the payout on the measure you hold it against. ADC's own AFFO payout was 69% to 73% for eight quarters; on Nareit FFO it is about 77%. A reading outside those ranges would be a change.
• Watch five dated items. The Q3 results after the close on October 20 and the call on October 21 (company announcement; the 10-Q follows); whether the 5,722,117 forward shares dated October 2026 settle, and the share count; the monthly dividend declarations (July's $0.267 is the latest in the filings we read; the August to October declarations are not stated in them); the $50 million due in 2027 and $410 million due in 2028; and the Series A preferred call.
• Check four numbers in the Q3 supplemental. Investment-grade share of ABR (65.8%), weighted-average lease term (7.7 years), credit and occupancy loss (0.06%) and net debt to recurring EBITDA (5.2 times; 3.7 times pro forma).
• Size the position. ADC is one REIT with one dividend: 34.6% of its rent comes from 10 tenants, 47.5% from six retail sectors, about 26% from non-investment-grade tenants below 1.5% of rent each, and its per-share growth depends on buying at 7.0% and funding at a lower cost. The 10-K says its business “is significantly dependent on single tenant properties.”

FAQ

All figures are from Agree Realty Corporation (SEC CIK 917251) filings and releases read on EDGAR on October 18, 2026: Form 10-K for 2025 (accession 0000917251-26-000013) and for 2024 (0001558370-25-000803, for the 2022 dividend); Form 10-Q for the quarter ended June 30, 2026 (0000917251-26-000063, filed July 30, 2026); earnings releases and supplemental attached to Forms 8-K for Q4 2024 (0001104659-25-011470), Q1 2025 (0001104659-25-037417), Q2 2025 (0001104659-25-072681), Q3 2025 (0001104659-25-101229), Q4 2025 (0000917251-26-000012), Q1 2026 (0000917251-26-000046) and Q2 2026 (0000917251-26-000061, including the Q2 2026 supplemental financial information); Form 8-K of November 18, 2025 on the term loan (0001104659-25-113644), of April 24, 2026 on the at-the-market program (0001628280-26-027250), of September 22, 2026 on the 2036 notes (0001628280-26-063023) and of October 2, 2026 (0000917251-26-000066); the prospectus supplement of September 17, 2026 (0001628280-26-062716); the company's September 30, 2026 news release on the Q3 results date (Business Wire, not an SEC filing); and the Q2 2026 earnings releases of NNN REIT, Inc. (0001193125-26-333958) and Realty Income Corporation (0000726728-26-000044) for the peer table. The payout ratios in the eight-quarter table are the company's; percentages of FFO, sums, growth rates, yields, weighted averages and the refinancing sensitivity are our arithmetic from those rows. FFO, Core FFO, AFFO, EBITDAre, recurring EBITDA and ABR are the companies' non-GAAP definitions. The $75.74 share price is the June 30, 2026 close printed in the 10-Q and is not current. This is analysis of public documents, not investment, legal or tax advice.