艾格里不动产 2024年度报告

ANNUALREPORT2024 ANNUALREPORT for the year endedDECEMBER 31, 2024 Agree Realty Corporation (NYSE: ADC) is a fully-integrated, self-administered, and self-managedreal estate investment trust (REIT) whose mission istoRETHINK RETAILthrough the acquisition anddevelopment of properties net leased to industry-leading, omni-channel retail tenants throughout theUnited States. Building upon the foundation of excellenceestablished throughout the past five decades,Agree Realty continues to be a market leader inthe net lease space. As of December 31, 2024, ourgrowing portfolio consisted of 2,370 propertieslocated in all 50 states and contained approximately48.8 million square feet of gross leasable area. Dear Fellow Shareholders, The past year was marked by macroeconomic volatility and elevated interest rates. Amid these external pressures, we focusedinward. In 2024, our Company’s theme wasDIALED IN. We enhanced processes, improved systems and provided Team Membersopportunities to join other departments, driving professional development and more efficient resource allocation. We introduceda new Annual Planning Roadmap to streamline organizational planning and an Operations Alignment Meeting to enhance cross-functional collaboration and planning. We maintained our steadfast commitment to discipline and avoided deploying capital atinferior spreads or diluting portfolio quality. These efforts strengthened the Company’s foundation and further positioned us forlong-term success. However, this outcome was anything but certain at the beginning of the year, and the path to get here required discipline and grit.Please allow me to review our Company’s accomplishments over the past year. I hope you are as proud of our terrific Team as I am. Disciplined Capital AllocationDespite the difficult backdrop entering this past year, we were determined not to waver from our investment strategy. Following discussion of a potential “do-nothing” scenario on our Q3 2023 earnings call, we decisively raised over $235 million of forwardequity during Q4 2023. This enabled us to announce $500 million of leverage-neutral investment capacity in February 2024 andsubsequently introduce initial acquisition guidance of $600 million in April 2024. Our Team rolled up their sleeves and got to work identifying the best risk-adjusted opportunities. We intensified our focus onstrengthening relationships with our retail partners, increased the number of outbound connections, and identified distressedsellers and developers, enabling us to continue executing on high-quality opportunities while improving efficiency. Our conversionrate of deals approved by Investment Committee to letters of intent signed increased to 42%, near the highest level in two years. As the year progressed and the macro-economic environment became more conducive, our efforts began to bear fruit. In the fourthquarter, we acquired over $341 million of high-quality retail net lease assets, nearly triple the investment volume completed duringthe first quarter. For the year, we acquired nearly $867 million of high-quality retail net lease assets, 44% above our initial acquisitionguidance. Including capital deployed into development and Developer Funding Platform projects, we invested $951 million duringa year that started with the contemplation of a “do-nothing” scenario. Proactive Balance Sheet Management The acceleration in investment activity during the second half of the year was supported by strategic and proactive capital raises. InMay, we completed a $450 million offering of 2034 senior unsecured notes at an all-in interest rate of 5.65%. Subsequently in June,we raised nearly $200 million of forward equity via our at-the-market equity (“ATM”) program. Our capital markets activities duringthe second quarter were quickly followed by the achievement of an upgraded credit rating of BBB+ from S&P Global Ratings, furthervalidating the prudent and disciplined manner in which we continue to grow the Company. We remained active in the capital markets during the third quarter, expanding our revolving credit facility from $1.0 billion to $1.25billion, with strong support from our key banking partners. Our prudent activities, combined with a decline in interest rates, resultedin a significant improvement in our cost of capital. We capitalized on this shift, raising nearly $470 million of forward equity via ourATM program during the third quarter and further bolstering our fortress balance sheet. In addition, we executed on $200 millionof forward starting swaps at an effective 10-year US treasury rate of approximately 3.7%, once again demonstrating our ability toopportunistically de-risk future capital raises. Our capital markets activities put the Company in an excellent position to pursue investment opportunities as activityacross all three external growth platforms began to ramp. Multiple equity levers were pulled during the year totaling $1.1billion of gross proceeds raised. This p