Agree Realty Announces Exercise of Underwriters' Option and Closing of Forward Offering of Common Stock
Agree Realty (NYSE: ADC) has completed its public offering of 5,060,000 shares of common stock, including the underwriters' full exercise of their option. The company entered into forward sale agreements with Citibank and Wells Fargo Bank at $74.00 per share, less underwriting fees. The settlement is expected by December 31, 2025. The net proceeds will be used for general corporate purposes, including property acquisitions, development activity, and debt repayment under its revolving credit facility. The forward sale structure allows ADC to set the price now while delaying share issuance until funding needs arise.
Agree Realty (NYSE: ADC) ha completato la sua offerta pubblica di 5.060.000 azioni di azioni ordinarie, includendo l'esercizio completo dell'opzione da parte dei sottoscrittori. L'azienda ha stipulato accordi di vendita futura con Citibank e Wells Fargo Bank a 74,00 $ per azione, meno le spese di sottoscrizione. L'accordo è previsto entro il 31 dicembre 2025. I proventi netti saranno utilizzati per scopi aziendali generali, inclusi acquisti immobiliari, attività di sviluppo e rimborso di debiti nell'ambito della sua linea di credito rotativa. La struttura di vendita anticipata consente ad ADC di fissare il prezzo ora, mentre ritarda l'emissione delle azioni fino a quando si presentano necessità di finanziamento.
Agree Realty (NYSE: ADC) ha completado su oferta pública de 5,060,000 acciones de acciones ordinarias, incluyendo el ejercicio completo de la opción por parte de los suscriptores. La empresa firmó acuerdos de venta anticipada con Citibank y Wells Fargo Bank a $74.00 por acción, menos las tarifas de suscripción. Se espera que la liquidación ocurra antes del 31 de diciembre de 2025. Los ingresos netos se utilizarán para fines corporativos generales, incluidos adquisiciones de propiedades, actividades de desarrollo y pago de deudas bajo su línea de crédito rotativa. La estructura de venta anticipada permite a ADC fijar el precio ahora, mientras se retrasa la emisión de acciones hasta que surjan necesidades de financiamiento.
Agree Realty (NYSE: ADC)는 5,060,000주의 보통주를 공개적으로 발행하였으며, 인수인들이 옵션을 완전히 행사한 것을 포함합니다. 회사는 Citibank 및 Wells Fargo Bank와 주당 74.00 달러에 선도 판매 계약을 체결하였으며, 인수 수수료는 제외됩니다. 이 합의는 2025년 12월 31일까지 완료될 예정입니다. 순수익은 일반적인 법인 목적으로 사용되며, 여기에는 자산 인수, 개발 활동 및 순환 신용 시설에 따른 채무 상환이 포함됩니다. 선도 판매 구조는 ADC가 지금 가격을 설정할 수 있게 하면서, 자금 필요가 발생할 때까지 주식 발행을 연기할 수 있도록 합니다.
Agree Realty (NYSE: ADC) a finalisé son offre publique de 5.060.000 actions ordinaires, y compris l'exercice intégral de l'option par les souscripteurs. La société a conclu des accords de vente à terme avec Citibank et Wells Fargo Bank à 74,00 $ par action, moins les frais de souscription. Le règlement est prévu d'ici le 31 décembre 2025. Les produits nets seront utilisés à des fins générales de l'entreprise, notamment pour des acquisitions immobilières, des activités de développement et le remboursement de dettes dans le cadre de sa facilité de crédit renouvelable. La structure de vente à terme permet à ADC de fixer le prix maintenant tout en retardant l'émission d'actions jusqu'à ce que les besoins de financement se manifestent.
Agree Realty (NYSE: ADC) hat ihr öffentliches Angebot von 5.060.000 Aktien gewöhnlicher Aktien abgeschlossen, einschließlich der vollständigen Ausübung der Option durch die Underwriter. Das Unternehmen hat mit Citibank und Wells Fargo Bank Vorverkaufsvereinbarungen zu einem Preis von 74,00 $ pro Aktie abgeschlossen, abzüglich der Underwriting-Gebühren. Der Abschluss wird bis zum 31. Dezember 2025 erwartet. Die Nettoerlöse werden für allgemeine Unternehmenszwecke verwendet, einschließlich Immobilienakquisitionen, Entwicklungsaktivitäten und Schuldenrückzahlung im Rahmen der revolvierenden Kreditfazilität. Die Vorverkaufsstruktur ermöglicht es ADC, den Preis jetzt festzulegen und die Emission von Aktien zu verzögern, bis Finanzierungsbedürfnisse auftreten.
- Successful completion of public offering with full exercise of underwriters' option
- Flexible forward sale agreement structure allowing delayed share issuance
- Secured funding at $74.00 per share for future growth initiatives
- Potential future dilution of existing shareholders upon settlement
- Share price subject to adjustments under forward sale agreements
Insights
This forward equity offering represents a significant capital markets transaction for Agree Realty. The company has secured the right to issue 5.06 million shares at
The delayed settlement feature is strategically valuable, enabling ADC to match funding with future acquisition and development needs. This approach helps minimize dilution and carrying costs compared to a traditional equity raise. The company's ability to execute this offering with major institutions like Citibank and Wells Fargo demonstrates strong market confidence in their business model and growth strategy.
Citigroup and Wells Fargo Securities acted as joint book-running managers for the offering.
The Company has entered into forward sale agreements with Citibank, N.A. and Wells Fargo Bank, National Association (the "forward purchasers") with respect to 5,060,000 shares of its common stock. In connection with the forward sale agreements, the forward purchasers or their affiliates borrowed and sold to the underwriters an aggregate of 5,060,000 shares of the common stock delivered in this offering. 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 occurring no later than December 31, 2025, an aggregate of 5,060,000 shares of its common stock 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 of
The Company has not received 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 may be obtained by contacting: Citigroup Global Markets Inc.: c/o Broadridge Financial Solutions, 1155 Long Island Avenue,
This offering was made pursuant to an effective shelf registration statement and related prospectus filed by the Company with the Securities and Exchange Commission ("SEC"). The offering of the securities was made only by means of a prospectus supplement and accompanying prospectus, which are on file 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 intended use of proceeds from the offering, if any, and future settlement of its forward sales agreements, that represent the Company's expectations and projections for the future. No assurance can be given that the forward sales 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
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