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Agree Realty (ADC) Cheers Investors With 2.6% Dividend Hike
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Delighting its shareholders, Agree Realty Corporation (ADC - Free Report) announced a 2.6% sequential hike in the monthly cash dividend, increasing it to 24 cents per share from the 23.4 cents paid out earlier. The raised dividend is scheduled to be paid out on Nov 14 to stockholders of record at the close of the business on Oct 31, 2022.
Based on the new rate, the annualized dividend rate comes to $2.880 per share, up 5.7% from the annualized dividend amount of $2.724 per share from the fourth quarter of 2021. This indicates an annualized yield of roughly 4.37%, considering this retail real estate investment trust’s (REIT) closing price of $65.89 on Oct 13.
Can Agree Realty Maintain Its Payout?
Solid dividend payouts remain the biggest enticements for REIT investors, and Agree Realty remains committed to boosting shareholder wealth.
ADC has increased its dividend 10 times in the last five years, and the five-year annualized dividend growth rate is 6.72%. This is attractive to income investors and represents a steady income stream. Check Agree Realty’s dividend history here.
Agree Realty, which focuses on the acquisition and development of properties net leased to industry-leading, omnichannel retail tenants, owned and operated a portfolio of 1,607 properties in all 48 continental states. Its tenant roster mainly comprises national and super-regional retailers. The company invested a record of around $860 million in 228 retail net lease properties in the first half of 2022.
Moreover, at the quarter-end, the company’s portfolio was 99.6% leased and had a weighted-average remaining lease term of roughly nine years. Investment-grade retailers denoted 67.5% of annualized base rents. These provide more reliable streams of income, which boost the stability of rental revenues and generate predictable cash flows.
Agree Realty’s projected funds from operations (FFO) per share growth for 2022 is 10.19%, ahead of the industry’s average of 8.68%. Moreover, ADC’s leverage picture looks impressive. Its debt/equity ratio of 0.51 compares favorably with 0.89 for its industry.
Additionally, this retail REIT churns cash flow per share of $3.51 compared with the industry’s average of $1.90. It witnessed robust cash flow growth in the past. Furthermore, the company’s current cash flow growth of 39.42% is significantly higher than the industry’s average of 26.69%. Secure cash flow will help Agree Realty sustain its dividend payouts in the future.
Some key picks from the retail REIT sector are Regency Centers Corporation (REG - Free Report) and SITE Centers Corp. (SITC - Free Report) .
The Zacks Consensus Estimate for Regency Centers’ ongoing year’s FFO per share has been raised marginally over the past week to $3.96. REG currently holds a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for SITE Centers’ 2022 FFO per share has moved marginally upward in the past two months to $1.16. SITC presently carries a Zacks Rank of 2.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Agree Realty (ADC) Cheers Investors With 2.6% Dividend Hike
Delighting its shareholders, Agree Realty Corporation (ADC - Free Report) announced a 2.6% sequential hike in the monthly cash dividend, increasing it to 24 cents per share from the 23.4 cents paid out earlier. The raised dividend is scheduled to be paid out on Nov 14 to stockholders of record at the close of the business on Oct 31, 2022.
Based on the new rate, the annualized dividend rate comes to $2.880 per share, up 5.7% from the annualized dividend amount of $2.724 per share from the fourth quarter of 2021. This indicates an annualized yield of roughly 4.37%, considering this retail real estate investment trust’s (REIT) closing price of $65.89 on Oct 13.
Can Agree Realty Maintain Its Payout?
Solid dividend payouts remain the biggest enticements for REIT investors, and Agree Realty remains committed to boosting shareholder wealth.
ADC has increased its dividend 10 times in the last five years, and the five-year annualized dividend growth rate is 6.72%. This is attractive to income investors and represents a steady income stream. Check Agree Realty’s dividend history here.
Agree Realty, which focuses on the acquisition and development of properties net leased to industry-leading, omnichannel retail tenants, owned and operated a portfolio of 1,607 properties in all 48 continental states. Its tenant roster mainly comprises national and super-regional retailers. The company invested a record of around $860 million in 228 retail net lease properties in the first half of 2022.
Moreover, at the quarter-end, the company’s portfolio was 99.6% leased and had a weighted-average remaining lease term of roughly nine years. Investment-grade retailers denoted 67.5% of annualized base rents. These provide more reliable streams of income, which boost the stability of rental revenues and generate predictable cash flows.
Agree Realty’s projected funds from operations (FFO) per share growth for 2022 is 10.19%, ahead of the industry’s average of 8.68%. Moreover, ADC’s leverage picture looks impressive. Its debt/equity ratio of 0.51 compares favorably with 0.89 for its industry.
Additionally, this retail REIT churns cash flow per share of $3.51 compared with the industry’s average of $1.90. It witnessed robust cash flow growth in the past. Furthermore, the company’s current cash flow growth of 39.42% is significantly higher than the industry’s average of 26.69%. Secure cash flow will help Agree Realty sustain its dividend payouts in the future.
Currently, ADC carries a Zacks Rank #3 (Hold). Over the past six months, shares of the company have declined 5.8%, narrower than the industry’s fall of 24.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Stocks to Consider
Some key picks from the retail REIT sector are Regency Centers Corporation (REG - Free Report) and SITE Centers Corp. (SITC - Free Report) .
The Zacks Consensus Estimate for Regency Centers’ ongoing year’s FFO per share has been raised marginally over the past week to $3.96. REG currently holds a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for SITE Centers’ 2022 FFO per share has moved marginally upward in the past two months to $1.16. SITC presently carries a Zacks Rank of 2.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.