Agree Realty Raises 2026 AFFO Guidance to $4.58 per Share
Key Facts
Agree Realty on October 20 raised the low end of its 2026 adjusted funds from operations (AFFO) per-share guidance range from $4.57–$4.59 to $4.58–$4.59, after reporting third-quarter results. The company also raised its property disposition outlook, while cutting its estimated investment volume for the year to about $1.6 billion from a range of $1.6–$1.8 billion. The revisions show a focus on increasing expected per-share returns while resetting investment volume and property dispositions. The data do not establish that Realty Income made a similar adjustment in October; its latest documented increase to annual guidance dates to its second-quarter results announcement on August 5. At that time, the company raised its 2026 AFFO range to $4.44–$4.45 per share from $4.41–$4.44.
Agree Realty’s AFFO was $144.2 million in the three months ended September 30, up 17.2% from $123.1 million in the same period of 2025. AFFO per share rose 4.9% to $1.15, compared with $1.10 a year earlier. In the first nine months of 2026, AFFO per share increased 6.7% to $3.43 from $3.22 in the same period of 2025. The results provide context for raising the low end of the full-year forecast, while the high end remained at $4.59 per share. In the second quarter, Realty Income reported AFFO per share of $1.09, up 3.8% from the comparable period of 2025, and said its revised guidance reflected growth of about 4% at the midpoint.
Agree Realty invested about $357.7 million in the third quarter across 94 properties, bringing total investment in the first nine months to about $1.3 billion across 261 properties. Properties acquired in the quarter had a weighted average capitalization rate of 7.3% and a weighted average lease term of about 14.5 years. The company’s new guidance cuts expected annual investment volume to about $1.6 billion, while raising its property disposition range to $100–$150 million from $50–$100 million. Chief Executive Joey Agree said the company invested about $1.3 billion across its three external growth platforms in the first nine months. He added that the company would work “to allocate capital with discipline, focusing on value rather than volume and maintaining liquidity.”
Agree Realty bolstered its liquidity in the third quarter by issuing $400 million in public notes at an all-in rate of 5.36%. As of September 30, liquidity was about $2.0 billion, while net debt to pro forma recurring EBITDA was 3.9 times, and the portfolio was 99.8% leased. These indicators show part of the financing and occupancy position within which the company is resetting its investment and property disposition forecasts. The company also declared monthly cash dividends totaling $2.388 per share in the first nine months, up 4.1% from $2.295 in the comparable period of 2025. The dividends represented about 70% of AFFO per share over that period.
Agree Realty raised its October monthly dividend to $0.271 per share, an annual increase of 3.4%, payable on November 13 to shareholders of record on October 30. Realty Income, meanwhile, announced in June the formation of a joint venture to invest in hyperscale data centers, with initial assets valued at more than $6 billion. Chief Executive Sumit Roy said in August that the joint venture and investment management platform provided new growth channels while maintaining disciplined underwriting standards. Realty Income recorded total investments of $2.6 billion in the second quarter, including $2.1 billion on its pro rata basis, at a weighted average initial cash yield of 7.3%. It was scheduled to report third-quarter results after the New York Stock Exchange closed on November 2, while Realty Income shares closed at $57.2 and Agree Realty shares at $67.61 on October 29.