Agree Realty Announces Common Stock Offering
Agree Realty (NYSE: ADC) has announced a public offering of 4,000,000 shares of its common stock, with an option for underwriters to purchase an additional 600,000 shares. The company is entering into forward sale agreements with Citibank and Wells Fargo Bank. The forward purchasers will borrow and sell shares to underwriters, with the company receiving proceeds upon physical settlement at a later date. The net proceeds will be used for general corporate purposes, including property acquisitions, development activity, or debt repayment under its revolving credit facility. Citigroup and Wells Fargo Securities are serving as joint book-running managers for the offering.
Agree Realty (NYSE: ADC) ha annunciato un offerta pubblica di 4.000.000 azioni del suo capitale sociale, con un'opzione per i sottoscrittori di acquistare ulteriori 600.000 azioni. L'azienda sta stipulando contratti di vendita a termine con Citibank e Wells Fargo Bank. I compratori a termine prenderanno in prestito e venderanno azioni agli sottoscrittori, con l'azienda che riceverà i proventi al momento della liquidazione fisica in una data successiva. I proventi netti saranno utilizzati per scopi aziendali generali, inclusi acquisizioni immobiliari, attività di sviluppo o rimborso di debiti secondo la sua linea di credito rotativa. Citigroup e Wells Fargo Securities stanno fungendo da manager congiunti per l'offerta.
Agree Realty (NYSE: ADC) ha anunciado una oferta pública de 4.000.000 de acciones de sus acciones comunes, con una opción para que los suscriptores compren 600.000 acciones adicionales. La empresa está firmando acuerdos de venta a plazo con Citibank y Wells Fargo Bank. Los compradores a plazo tomarán prestadas y venderán acciones a los suscriptores, con la empresa recibiendo los ingresos en el momento de la liquidación física en una fecha posterior. Los ingresos netos se utilizarán para fines corporativos generales, incluidas adquisiciones de propiedades, actividades de desarrollo o el reembolso de deudas bajo su línea de crédito rotativa. Citigroup y Wells Fargo Securities están actuando como gerentes conjuntos de la oferta.
Agree Realty (NYSE: ADC)는 4,000,000주의 보통주에 대한 공모를 발표했습니다, 그리고 인수인에게 추가로 600,000주 구매 옵션을 제공합니다. 회사는 Citibank 및 Wells Fargo Bank와 선도 매매 계약을 체결하고 있습니다. 선도 매수자는 주식을 빌려서 인수인에게 판매할 것입니다, 회사는 이후의 물리적 정산 시점에 수익을 받게 됩니다. 순 수익은 일반 기업 용도에 사용되며, 여기에는 자산 매입, 개발 활동 또는 회전 신용 시설에 따른 부채 상환이 포함됩니다. Citigroup 및 Wells Fargo Securities는 이 공모의 공동 주관사로 활동하고 있습니다.
Agree Realty (NYSE: ADC) a annoncé une offre publique de 4 000 000 d'actions de ses actions ordinaires, avec une option pour les souscripteurs d'acheter 600 000 actions supplémentaires. La société conclut des contrats de vente à terme avec Citibank et Wells Fargo Bank. Les acheteurs à terme emprunteront et vendront des actions aux souscripteurs, la société recevant les produits lors du règlement physique à une date ultérieure. Les produits nets seront utilisés pour des besoins d'entreprise généraux, y compris des acquisitions immobilières, des activités de développement ou le remboursement de dettes dans le cadre de sa ligne de crédit renouvelable. Citigroup et Wells Fargo Securities agissent en tant que gestionnaires principaux associés pour l'offre.
Agree Realty (NYSE: ADC) hat ein öffentliches Angebot von 4.000.000 Aktien seiner Stammaktien bekanntgegeben, mit einer Option für die Underwriter, zusätzlich 600.000 Aktien zu kaufen. Das Unternehmen geht Verträge über zukünftige Verkäufe mit Citibank und Wells Fargo Bank ein. Die Käuferschaft wird Aktien ausleihen und an die Underwriter verkaufen, wobei das Unternehmen die Erlöse bei physischer Abwicklung zu einem späteren Zeitpunkt erhält. Die Nettoerlöse werden für allgemeine Unternehmenszwecke verwendet, einschließlich Immobilienakquisitionen, Entwicklungsaktivitäten oder Schuldenrückzahlungen im Rahmen seiner revolvierenden Kreditfazilität. Citigroup und Wells Fargo Securities fungieren als gemeinsame Hauptbuchmacher für das Angebot.
- Flexible financing structure allowing delayed share issuance and receipt of proceeds
- Potential strengthening of balance sheet through debt repayment option
- Additional capital for property acquisitions and development activities
- Potential dilution of existing shareholders upon settlement of forward sale agreements
- Future share issuance may pressure stock price
Insights
The proposed 4 million share offering with an additional 600,000 share option represents a significant capital raising event through forward sale agreements. This structure allows ADC to lock in today's pricing while delaying share issuance until funds are needed, providing flexibility in timing property acquisitions and debt management. Based on current market price, this could raise approximately
The forward sale arrangement is strategically beneficial as it minimizes immediate dilution while securing future capital needs. However, investors should note potential dilution when shares are eventually issued. The use of proceeds for property acquisitions and debt reduction aligns with ADC's growth strategy as a net lease REIT, though specific acquisition targets aren't disclosed.
This capital raise positions ADC to continue its acquisition strategy in the net lease retail sector. With the current market environment presenting opportunities in retail real estate, the timing suggests ADC sees attractive deployment opportunities. The flexibility to draw capital as needed through the forward sale structure is particularly valuable in the current high-interest rate environment, allowing for opportunistic purchases while managing the cost of capital.
The decision to raise equity rather than debt indicates a conservative approach to maintaining balance sheet strength, though it comes at the cost of equity dilution. This move could help maintain ADC's investment-grade credit rating and provide dry powder for future growth.
Citigroup and Wells Fargo Securities are acting as joint book-running managers for the offering.
The Company expects to enter into forward sale agreements with Citibank, N.A. and Wells Fargo Bank, National Association (the "forward purchasers") with respect to 4,000,000 shares of its common stock (or an aggregate of 4,600,000 shares if the underwriters exercise their option to purchase additional shares in full). In connection with the forward sale agreements, the forward purchasers or their affiliates are expected to borrow and sell to the underwriters an aggregate of 4,000,000 shares of the common stock that will be delivered in this offering (or an aggregate of 4,600,000 shares if the underwriters exercise their 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 agreements on one or more dates specified by the Company, an aggregate of 4,000,000 shares of its common stock (or an aggregate of 4,600,000 shares if the underwriters exercise their option to purchase additional shares in full) to the forward purchasers 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 agreements.
The Company will not initially receive any proceeds from the sale of shares of its common stock by the forward purchasers. The Company expects to use the net proceeds, if any, it receives upon the future settlement of the forward sale agreements 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 agreements 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: Citigroup Global Markets Inc.: c/o Broadridge Financial Solutions, 1155 Long Island Avenue,
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 September 30, 2024, the Company owned and operated a portfolio of 2,271 properties, located in 49 states and containing approximately 47.2 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, one of the most significant factors, however, is the adverse effect of macroeconomic conditions, including inflation and the potential impacts of pandemics, epidemics or other public health emergencies or fear of such events 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, 2023 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
How many shares is Agree Realty (ADC) offering in its October 2024 public offering?
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