Agree Realty Declares Monthly Common and Preferred Dividends

Rhea-AI Summary

Agree Realty Corporation (ADC) has announced a 2.9% increase in its monthly cash dividend to $0.247 per common share, reflecting an annualized dividend amount of $2.964 per common share. The Company has also declared a monthly cash dividend on its 4.25% Series A Cumulative Redeemable Preferred Stock of $0.08854 per depositary share, equivalent to $1.0625 per annum. The dividends are payable in March 2024 to stockholders of record in February 2024.

Insights

Financial Analyst

The announcement of Agree Realty Corporation's increase in monthly cash dividends for common shares by 2.9% is a positive signal to investors, indicating the company's confidence in its financial stability and profitability. This increase is slightly above the average dividend growth rate, which tends to hover around 2-3% for stable companies. The declared dividend also suggests a solid cash flow position, enabling the company to return value to shareholders consistently.

From a financial analysis perspective, the impact of such a dividend increase on the stock market typically results in a positive short-term price movement, as investors perceive the hike as a sign of financial health and often a precursor to future earnings growth. However, it's essential to consider the payout ratio to ensure that the company is not overextending itself, which could lead to unsustainable dividends in the long term.

Market Research Analyst

The declared increase in dividends can also be seen as a strategic move by Agree Realty Corporation to enhance its attractiveness among income-focused investors, particularly in a low-interest-rate environment where investors seek out dividend-paying stocks. This can potentially increase demand for ADC's shares. Additionally, the timing of the dividend declaration, ahead of the closing of the fiscal quarter, may be a strategic decision to influence investor sentiment positively.

It's important to benchmark this dividend increase against industry standards and competitors. If Agree Realty Corporation's dividend growth rate outpaces its peers, it could indicate superior performance or a more aggressive shareholder return policy. Conversely, if the increase is in line with or below industry trends, it may reflect a cautious approach amid broader sectoral challenges.

Real Estate Investment Trust (REIT) Analyst

As a REIT, Agree Realty Corporation is required to distribute at least 90% of its taxable income to shareholders in the form of dividends. The increase in dividends suggests that the company is generating sufficient taxable income to not only maintain compliance with REIT distribution requirements but also to provide additional returns to shareholders. This could be indicative of a strong portfolio of properties, effective asset management and a favorable real estate market, particularly in the retail sector where Agree Realty primarily operates.

The announcement also includes information on the dividend for the 4.25% Series A Cumulative Redeemable Preferred Stock. The stability of preferred stock dividends, coupled with the increase in common stock dividends, may reflect a well-structured capital strategy that balances growth with financial prudence. Investors would be keen to understand the underlying property portfolio performance that supports these dividend payouts.

ROYAL OAK, Mich., Feb. 8, 2024 /PRNewswire/ -- Agree Realty Corporation (NYSE: ADC) (the "Company") today announced that its Board of Directors has authorized, and the Company has declared, a monthly cash dividend of $0.247 per common share. The monthly dividend reflects an annualized dividend amount of $2.964 per common share, representing a 2.9% increase over the annualized dividend amount of $2.880 per common share from the first quarter of 2023. The dividend is payable March 14, 2024 to stockholders of record at the close of business on February 29, 2024.

Additionally, the Company's Board of Directors has authorized, and the Company has declared, a monthly cash dividend on its 4.25% Series A Cumulative Redeemable Preferred Stock of $0.08854 per depositary share, which is equivalent to $1.0625 per annum. The dividend is payable March 1, 2024 to stockholders of record at the close of business on February 20, 2024.

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 December 31, 2023, the Company owned and operated a portfolio of 2,135 properties, located in 49 states and containing approximately 44.2 million square feet of gross leasable area. The Company's common stock is listed on the New York Stock Exchange under the symbol "ADC". For additional information on the Company and RETHINKING RETAIL, please visit www.agreerealty.com.

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SOURCE Agree Realty Corporation

FAQ

What is the new monthly cash dividend for Agree Realty Corporation (ADC)?

The new monthly cash dividend for ADC is $0.247 per common share.

What is the annualized dividend amount for ADC's common shares?

The annualized dividend amount for ADC's common shares is $2.964 per common share.

What is the monthly cash dividend for ADC's 4.25% Series A Cumulative Redeemable Preferred Stock?

The monthly cash dividend for ADC's 4.25% Series A Cumulative Redeemable Preferred Stock is $0.08854 per depositary share, equivalent to $1.0625 per annum.

When are the dividends payable to stockholders?

The dividends are payable in March 2024 to stockholders of record in February 2024.