Agree Realty Announces Common Stock Offering
Agree Realty (NYSE: ADC) has announced a public offering of 4,500,000 shares of common stock, with an additional 30-day option for 675,000 shares. The company is entering a forward sale agreement with Bank of America, who will act as the sole book-running manager.
Under the forward sale agreement, Bank of America will borrow and sell the shares to underwriters, with ADC having the right to receive cash proceeds upon physical settlement. The company will not initially receive proceeds from the sale but plans to use future net proceeds for general corporate purposes, including property acquisitions, development activity, and debt repayment under its revolving credit facility.
This structure allows ADC to set the share price at offering while delaying share issuance and proceeds receipt until funding requirements materialize. The offering is being made through an effective shelf registration statement filed with the SEC.
Agree Realty (NYSE: ADC) ha annunciato un'offerta pubblica di 4.500.000 azioni ordinarie, con un'opzione aggiuntiva di 30 giorni per 675.000 azioni. La società ha stipulato un accordo di vendita a termine con Bank of America, che agirà come unico responsabile del collocamento.
Secondo l'accordo di vendita a termine, Bank of America prenderà in prestito e venderà le azioni agli sottoscrittori, mentre ADC avrà il diritto di ricevere i proventi in contanti al momento del regolamento fisico. Inizialmente la società non riceverà i proventi dalla vendita, ma prevede di utilizzare i futuri proventi netti per scopi aziendali generali, inclusi acquisizioni di immobili, attività di sviluppo e rimborso del debito nell'ambito della sua linea di credito revolving.
Questa struttura permette ad ADC di fissare il prezzo delle azioni al momento dell'offerta, posticipando però l'emissione delle azioni e la ricezione dei proventi fino a quando si concretizzeranno le esigenze di finanziamento. L'offerta viene effettuata tramite un prospetto di registrazione a scaffale efficace depositato presso la SEC.
Agree Realty (NYSE: ADC) ha anunciado una oferta pública de 4.500.000 acciones ordinarias, con una opción adicional de 30 días para 675.000 acciones. La compañía ha celebrado un acuerdo de venta a plazo con Bank of America, que actuará como único administrador del libro de órdenes.
Según el acuerdo de venta a plazo, Bank of America tomará prestadas y venderá las acciones a los suscriptores, y ADC tendrá el derecho a recibir los ingresos en efectivo al momento del asentamiento físico. Inicialmente, la compañía no recibirá ingresos por la venta, pero planea utilizar los ingresos netos futuros para propósitos corporativos generales, incluyendo adquisiciones de propiedades, actividades de desarrollo y el pago de deuda bajo su línea de crédito revolvente.
Esta estructura permite a ADC fijar el precio de las acciones en la oferta mientras retrasa la emisión de acciones y la recepción de ingresos hasta que se materialicen las necesidades de financiamiento. La oferta se realiza mediante un estado de registro en estantería efectivo presentado ante la SEC.
Agree Realty (NYSE: ADC)는 450만 주의 보통주를 공개 매도하며, 추가로 30일간 행사 가능한 67만 5천 주 옵션을 발표했습니다. 회사는 단독 주관사로 활동할 Bank of America와 선매도 계약을 체결했습니다.
선매도 계약에 따라 Bank of America는 주식을 차입하여 인수인들에게 판매하며, ADC는 실제 결제 시 현금 수익을 받을 권리를 갖게 됩니다. 회사는 초기에는 매도 대금을 받지 않지만, 향후 순수익을 일반 기업 목적으로 사용하며, 여기에는 부동산 인수, 개발 활동, 그리고 회전 신용 시설 하의 부채 상환이 포함됩니다.
이 구조는 ADC가 공모가를 설정하면서도 주식 발행과 수익 수령을 자금 수요가 발생할 때까지 미룰 수 있게 합니다. 이 공모는 SEC에 제출된 유효한 선등록서류를 통해 진행됩니다.
Agree Realty (NYSE : ADC) a annoncé une offre publique de 4 500 000 actions ordinaires, avec une option supplémentaire de 30 jours portant sur 675 000 actions. La société a conclu un accord de vente à terme avec Bank of America, qui agira en tant que gestionnaire unique du livre d’ordres.
Dans le cadre de cet accord, Bank of America empruntera et vendra les actions aux souscripteurs, tandis qu’ADC aura le droit de recevoir les produits en espèces lors du règlement physique. La société ne recevra pas immédiatement les produits de la vente, mais prévoit d’utiliser les produits nets futurs à des fins générales d’entreprise, notamment pour des acquisitions immobilières, des activités de développement et le remboursement de dettes dans le cadre de sa facilité de crédit renouvelable.
Cette structure permet à ADC de fixer le prix des actions lors de l’offre tout en reportant l’émission des actions et la réception des produits jusqu’à ce que les besoins de financement se matérialisent. L’offre est réalisée via une déclaration d’enregistrement sur étagère effective déposée auprès de la SEC.
Agree Realty (NYSE: ADC) hat eine öffentliche Platzierung von 4.500.000 Stammaktien angekündigt, mit einer zusätzlichen 30-tägigen Option für 675.000 Aktien. Das Unternehmen geht eine Forward-Verkaufsvereinbarung mit der Bank of America ein, die als alleiniger Bookrunner fungieren wird.
Im Rahmen der Forward-Verkaufsvereinbarung leiht sich die Bank of America die Aktien und verkauft sie an Zeichner, wobei ADC das Recht hat, bei physischer Abwicklung Bargelderlöse zu erhalten. Das Unternehmen wird zunächst keine Erlöse aus dem Verkauf erhalten, plant jedoch, die zukünftigen Nettoerlöse für allgemeine Unternehmenszwecke zu verwenden, einschließlich Immobilienakquisitionen, Entwicklungsaktivitäten und der Rückzahlung von Schulden im Rahmen seiner revolvierenden Kreditfazilität.
Diese Struktur ermöglicht es ADC, den Aktienpreis zum Angebot festzulegen, während die Ausgabe der Aktien und der Erhalt der Erlöse bis zum tatsächlichen Finanzierungsbedarf verzögert werden. Das Angebot erfolgt über eine wirksame Shelf-Registrierung, die bei der SEC eingereicht wurde.
- Flexible financing structure allowing delayed share issuance
- Potential for property acquisition and development expansion
- Option to reduce revolving credit facility debt
- Potential dilution for existing shareholders
- No immediate access to offering proceeds
- Share price subject to future adjustments under forward sale agreement
Insights
Agree Realty's 4.5M share offering with forward sale structure provides flexible capital access while delaying dilution for future property investments.
Agree Realty (ADC) has announced a significant public offering of 4,500,000 shares of common stock, with a potential increase to 5,175,000 shares if the underwriter's option is fully exercised. Based on the current market cap of
The most strategic element of this offering is the forward sale agreement structure with Bank of America. This sophisticated capital markets approach allows ADC to:
- Lock in today's share pricing while delaying actual issuance
- Postpone any earnings dilution until capital is actually needed
- Maintain balance sheet efficiency by avoiding idle cash
- Preserve flexibility on acquisition timing
The company explicitly states the proceeds will fund property acquisitions, development activity, or debt reduction on their revolving credit facility - all core growth strategies for a net lease REIT.
For existing shareholders, this structure means any dilution effect is deferred until ADC actually settles the forward agreement and receives the proceeds. This approach is increasingly common among sophisticated REITs that want capital availability without immediate EPS impact.
BofA Securities serving as the sole book-running manager indicates a streamlined offering process, potentially allowing for more efficient execution.
While the offering will eventually increase the share count, this capital raising method aligns with ADC's business model as a net lease REIT that regularly acquires properties. The forward structure specifically suggests management is preparing for near-term growth opportunities while being thoughtful about shareholder dilution timing.
BofA Securities is acting as the sole book-running manager for the offering.
The Company expects to enter into a forward sale agreement with Bank of America, N.A. (the "forward purchaser") with respect to 4,500,000 shares of its common stock (or an aggregate of 5,175,000 shares if the underwriter exercises its option to purchase additional shares in full). In connection with the forward sale agreement, the forward purchaser or its affiliates are expected to borrow and sell to the underwriter an aggregate of 4,500,000 shares of the common stock that will be delivered in this offering (or an aggregate of 5,175,000 shares if the underwriter exercises its option to purchase additional shares in full). Subject to its right to elect cash or net share settlement, which right is subject to certain conditions, the Company intends to deliver, upon physical settlement of such forward sale agreement on one or more dates specified by the Company, an aggregate of 4,500,000 shares of its common stock (or an aggregate of 5,175,000 shares if the underwriter exercises its option to purchase additional shares in full) to the forward purchaser in exchange for cash proceeds per share equal to the applicable forward sale price, which will be the public offering price, less underwriting discounts and commissions, and will be subject to certain adjustments as provided in the forward sale agreement.
The Company will not initially receive any proceeds from the sale of shares of its common stock by the forward purchaser. The Company expects to use the net proceeds, if any, it receives upon the future settlement of the forward sale agreement for general corporate purposes, including to fund property acquisitions and development activity or the repayment of outstanding indebtedness under its revolving credit facility. Selling common stock through the forward sale agreement enables the Company to set the price of such shares upon pricing the offering (subject to certain adjustments) while delaying the issuance of such shares and the receipt of the net proceeds by the Company until the expected funding requirements described above have occurred.
Copies of the prospectus supplement relating to this offering, when available, may be obtained by contacting: BofA Securities by mail NC1-022-02-25, 201 North Tryon Street,
This offering is being made pursuant to an effective shelf registration statement and related prospectus filed by the Company with the Securities and Exchange Commission ("SEC"). A prospectus supplement relating to the offering will be filed with the SEC. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
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 March 31, 2025, the Company owned and operated a portfolio of 2,422 properties, located in all 50 states and containing approximately 50.3 million square feet of gross leasable area. The Company's common stock is listed on the New York Stock Exchange under the symbol "ADC".
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws, including statements about the terms and size of the offering, the intended use of proceeds from the offering, if any, that represent the Company's expectations and projections for the future. No assurance can be given that the offering discussed above will be completed on the terms described or at all, or that the net proceeds of the offering will be used as indicated. Although these forward-looking statements are based on good faith beliefs, reasonable assumptions and the Company's best judgment reflecting current information, 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. Currently, some of the most significant factors, include the potential adverse effect of ongoing worldwide economic uncertainties on the financial condition, results of operations, cash flows and performance of the Company and its tenants, the real estate market and the global economy and financial markets. The extent to which macroeconomic trends may impact us and our tenants will depend on future developments, which are highly uncertain and cannot be predicted with confidence. Moreover, investors are cautioned to interpret many of the risks identified in the risk factors discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 and other SEC filings, as well as the risks set forth below, as being heightened as a result of the ongoing and numerous adverse impacts of macroeconomic conditions. Additional important factors, among others, that may cause the Company's actual results to vary include the general deterioration in national economic conditions, weakening of real estate markets, decreases in the availability of credit, increases in interest rates, adverse changes in the retail industry, the Company's continuing ability to qualify as a REIT and other factors discussed in the Company's 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.
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SOURCE Agree Realty Corporation
FAQ
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