Agree Realty Corporation (NYSE: ADC) has found itself on an upward trajectory in the stock market, with a 4.05% surge to $65.00 in the current premarket session, effectively offsetting the 1.70% loss experienced in the previous session, which concluded at $62.47. This upward trend in the market is closely linked to an increase in investor confidence that was sparked by an insider deal.
Agree Realty’s (ADC) Executive Chairman of the Board, Richard Agree, recently showed his confidence in the company by purchasing 10,500 shares, as disclosed in a filing with the Securities and Exchange Commission (SEC). The $656,985 transaction was completed at a $62.57 per share price. Although there is little question that this insider purchase had a role in the strong feeling in the market, there are other factors that are also contributing to investors’ sentiment.
The announcement of ADC’s operating results for the fourth quarter and entire year of 2023 is a significant event that is coming up on Tuesday, February 13, 2024. In addition, Agree Realty recently provided a thorough rundown of its investment operations for 2023, including portfolio updates and capital market interactions during the fourth quarter.
The total amount of money invested in real estate in 2023 through purchases, builds, and projects funded by the Developer Funding Platform (“DFP”) was a staggering $1.34 billion. This included 319 properties across 41 states in the country that were all net leased to prestigious tenants in 27 different retail categories.
Between December 31, 2023, and the end of the following year, ADC purchased 282 retail net lease properties for a total acquisition volume of almost $1.19 billion. These acquisitions were conducted at an average capitalization rate of 6.9%, with a weighted-average remaining lease duration of 11.3 years.
Remarkably, investment-grade retail tenants accounted for nearly 73.7% of the yearly base rents obtained; ground-leased properties accounted for 8.9% of the total. The purchase volume reached $187.2 million in the fourth quarter alone, with a weighted-average capitalization rate of 7.2%—an increase of 80 basis points over the same time in 2022.
