Q2 2024 Agree Realty Corp Earnings Call Transcript
Key Points
- Agree Realty Corp (ADC) reported a strong first half of 2024, with disciplined investment strategies leading to high-quality closed transactions.
- The company bolstered its balance sheet with approximately $650 million of unsecured debt and equity capital, and expanded its revolving credit facility to $1.25 billion, providing total liquidity of $1.7 billion.
- Increased acquisition guidance to approximately $700 million from $600 million, reflecting confidence in the investment pipeline.
- Achieved a record occupancy rate of 99.8% at the end of the period, with significant progress in lease renewals and extensions.
- Core FFO for the second quarter was $1.3 per share, representing a 5.7% year-over-year increase, and AFFO per share increased 6.4% year-over-year to $1.4.
- The company noted the pressure on the low-end consumer, which could impact certain retail sectors like Dollar General.
- Despite strong performance, there is a lack of visibility into fourth-quarter acquisition activity due to the rapidly changing cost of capital.
- The company experienced approximately 25 basis points of credit loss year-to-date, with a full-year assumption of 50 basis points in guidance.
- There is ongoing competition in the market, particularly from regional buyers for high-quality retail properties.
- The company remains cautious about predicting cap rate trends due to the volatile macroeconomic and geopolitical environment.
Good morning and welcome to Agree Realty second quarter 2024 conference call. (Operator Instructions) please note that this event is being recorded. I would now like to turn the conference over to Reuben Treatman, Senior Director of Corporate Finance. Please go ahead, Reuben.
Thank you. Good morning, everyone, and thank you for joining us for Agree Realty's Second Quarter 2024 earnings call. Before turning the call over to Joey and Peter to discuss our results for the quarter, let me first run through the cautionary language. Please note that during this call, we will make certain statements that may be considered forward-looking under federal securities law, including statements related to our updated 2024 guidance.
Our actual results may differ significantly from the matters discussed in any forward-looking statements for a number of reasons. Please see yesterday's earnings release and our SEC filings, including our latest annual report on Form 10-K for a discussion of various
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