# AGREE REALTY CORP (ADC)

Informational only - not investment advice.

CIK: 0000917251
SIC: 6798 Real Estate Investment Trusts
SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Holding And Other Investment Offices](/major-group/67/) > [SIC 6798 Real Estate Investment Trusts](/industry/6798/)
Latest 10-K filed: 2026-02-10
SEC page: https://www.sec.gov/edgar/browse/?CIK=917251
Filing source: https://www.sec.gov/Archives/edgar/data/917251/000091725126000013/adc-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-10 · accession 0000917251-26-000013 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000917251.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 718,398,000 USD | 2025 | verified |
| Net income | 204,349,000 USD | 2025 | verified |
| Assets | 9,797,612,000 USD | 2025 | verified |
| Free cash flow | 504,136,000 USD | 2025 | computed |
| Net margin | 28.45% | 2025 | computed |
| Operating margin | 47.38% | 2025 | computed |
| Revenue YoY | +16.42% | 2025 | computed |
| ROE | 3.26% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | ADC | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 28.4% | 16.8% | 70 | 149 |
| Operating margin | 47.4% | 23.2% | 71 | 66 |
| Revenue growth | 16.4% | 3.7% | 89 | 149 |
| FCF margin | 70.2% | 21.8% | 100 | 70 |
| ROE | 3.3% | 5.7% | 38 | 151 |
| ROA | 2.1% | 1.5% | 58 | 155 |
| Liabilities / equity | 0.56 | 1.48 | 10 | 151 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6798 Real Estate Investment Trusts, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 718398000 | USD | 2025 | 2026-02-10 |
| Net income | 204349000 | USD | 2025 | 2026-02-10 |
| Assets | 9797612000 | USD | 2025 | 2026-02-10 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-10. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000917251.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 91,527,000 | 111,517,000 | 137,122,000 | 187,478,000 | 248,568,000 | 339,323,000 | 429,814,000 | 537,495,000 | 617,095,000 | 718,398,000 |
| Net income | 45,118,000 | 58,112,000 | 58,172,000 | 80,081,000 | 91,381,000 | 122,273,000 | 152,437,000 | 169,959,000 | 189,197,000 | 204,349,000 |
| Operating income | 51,662,000 | 62,961,000 | 73,006,000 | 114,395,000 | 133,132,000 | 190,269,000 | 218,085,000 | 254,387,000 | 302,243,000 | 340,395,000 |
| Diluted EPS | 1.97 | 2.08 | 1.78 | 1.93 | 1.74 | 1.78 | 1.83 | 1.70 | 1.78 | 1.77 |
| Operating cash flow | 61,735,000 | 82,203,000 | 93,247,000 | 126,707,000 | 142,956,000 | 246,315,000 | 362,121,000 | 391,598,000 | 431,972,000 | 504,136,000 |
| Capital expenditures |  |  |  |  |  | 8,800,000 |  |  | 423,000 | 0.00 |
| Dividends paid | 42,058,000 | 55,146,000 | 67,638,000 | 90,257,000 | 116,112,000 | 194,296,000 | 220,304,000 | 277,676,000 | 303,604,000 | 340,652,000 |
| Share buybacks | 712,000 | 1,111,000 | 1,145,000 | 1,406,000 | 1,641,000 | 1,813,000 | 1,912,000 | 2,684,000 | 2,281,000 | 3,740,000 |
| Assets | 1,141,972,000 | 1,494,634,000 | 2,028,189,000 | 2,664,530,000 | 3,886,183,000 | 5,226,906,000 | 6,713,189,000 | 7,774,836,000 | 8,486,446,000 | 9,797,612,000 |
| Liabilities | 456,462,000 | 583,444,000 | 789,703,000 | 972,968,000 | 1,359,934,000 | 1,807,590,000 | 2,082,799,000 | 2,574,683,000 | 2,975,785,000 | 3,526,459,000 |
| Stockholders' equity | 682,978,000 | 908,661,000 | 1,236,075,000 | 1,689,331,000 | 2,524,487,000 | 3,417,687,000 | 4,628,998,000 | 5,199,211,000 | 5,510,046,000 | 6,270,985,000 |
| Cash and cash equivalents | 33,395,000 | 50,807,000 | 53,955,000 | 15,603,000 | 6,137,000 | 43,252,000 | 27,763,000 | 10,907,000 | 6,399,000 | 16,295,000 |
| Free cash flow |  |  |  |  |  | 237,515,000 |  |  | 431,549,000 | 504,136,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 49.29% | 52.11% | 42.42% | 42.71% | 36.76% | 36.03% | 35.47% | 31.62% | 30.66% | 28.45% |
| Operating margin | 56.44% | 56.46% | 53.24% | 61.02% | 53.56% | 56.07% | 50.74% | 47.33% | 48.98% | 47.38% |
| Return on equity | 6.61% | 6.40% | 4.71% | 4.74% | 3.62% | 3.58% | 3.29% | 3.27% | 3.43% | 3.26% |
| Return on assets | 3.95% | 3.89% | 2.87% | 3.01% | 2.35% | 2.34% | 2.27% | 2.19% | 2.23% | 2.09% |
| Liabilities / equity | 0.67 | 0.64 | 0.64 | 0.58 | 0.54 | 0.53 | 0.45 | 0.50 | 0.54 | 0.56 |

## As-reported value updates

6 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/ADC/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-30. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000917251.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 0.46 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 0.44 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 0.42 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 136,812,000 | 41,522,000 | 0.41 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 144,165,000 | 45,955,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 149,453,000 | 44,859,000 | 0.43 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 152,575,000 | 54,724,000 | 0.52 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 154,332,000 | 44,375,000 | 0.42 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 160,734,000 | 45,239,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 169,160,000 | 46,996,000 | 0.42 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 175,527,000 | 49,198,000 | 0.43 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 183,222,000 | 52,117,000 | 0.45 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 190,489,000 | 56,037,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 200,807,000 | 62,051,000 | 0.50 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 205,100,000 | 54,653,000 | 0.44 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from ADC's latest 10-K: [/company/ADC/business/](/company/ADC/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from ADC's latest 10-K: [/company/ADC/risk-factors/](/company/ADC/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/917251/000091725126000063/adc-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-07-30
Report date: 2026-06-30

Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with the condensed consolidated financial statements of Agree Realty Corporation (the “Company”), a Maryland corporation, including the respective notes thereto, which are included elsewhere in this Quarterly Report on Form 10-Q. The terms “Company,” “Management,” “we,” “our” and “us” refer to Agree Realty Corporation and all of its consolidated subsidiaries, including Agree Limited Partnership (the “Operating Partnership”), a Delaware limited partnership.

Cautionary Note Regarding Forward-Looking Statements

This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe the Company’s future plans, strategies and expectations, are generally identifiable by use of the words “anticipate,” “estimate,” “should,” “expect,” “believe,” “intend,” “may,” “will,” “seek,” “could,” “project” or similar expressions. 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. Factors which may cause actual results to differ materially from current expectations include, but are not limited to: the factors included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, including those set forth under the headings “Business,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”; changes in general economic, financial and real estate market conditions; the financial failure of, or other default in payment by, tenants under their leases and the potential resulting vacancies; the Company’s concentration with certain tenants and in certain markets, which may make the Company more susceptible to adverse events; changes in the Company’s business strategy; risks that the Company’s acquisition and development projects will fail to perform as expected; adverse changes and disruption in the retail sector, including due to the adverse impact of tariffs, and the financing stability of the Company’s tenants, which could impact tenants’ ability to pay rent and expense reimbursement; the Company’s ability to pay dividends; risks relating to information technology and cybersecurity attacks, loss of confidential information and other related business disruptions; risks related to the impacts of artificial intelligence; loss of key management personnel; the potential need to fund improvements or other capital expenditures out of operating cash flow; financing risks, such as the inability to obtain debt or equity financing on favorable terms or at all; the level and volatility of interest rates; the Company’s ability to renew or re-lease space as leases expire; limitations in the Company’s tenants’ leases on real estate tax, insurance and operating cost reimbursement obligations; loss or bankruptcy of one or more of the Company’s major tenants, and bankruptcy laws that may limit the Company’s remedies if a tenant becomes bankrupt and rejects its leases; potential liability for environmental contamination, which could result in substantial costs; the Company’s level of indebtedness, which could reduce funds available for other business purposes and reduce the Company’s operational flexibility; covenants in the Company’s credit agreements and unsecured notes, which could limit the Company’s flexibility and adversely affect its financial condition; credit market developments that may reduce availability under the Company’s revolving credit facility and commercial paper program; an increase in market interest rates which could raise the Company’s interest costs on existing and future debt; a decrease in interest rates, which may lead to additional competition for the acquisition of real estate or adversely affect the Company’s results of operations; the Company’s hedging strategies, which may not be successful in mitigating the Company’s risks associated with interest rates; legislative or regulatory changes, including changes to laws governing real estate investment trusts (“REITs”); the Company’s ability to maintain its qualification as a REIT for federal income tax purposes and the limitations imposed on its business by its status as a REIT; and the Company’s failure to qualify as a REIT for federal income tax purposes, which could adversely affect the Company’s operations and ability to make distributions.

32

Table of Contents

Overview

The Company is a fully integrated REIT primarily focused on the ownership, acquisition, development and management of retail properties net leased to industry leading tenants. The Company was founded in 1971 by its current Executive Chairman, Richard Agree, and its common stock was listed on the New York Stock Exchange (“NYSE”) in 1994. The Company’s assets are held by, and all of its operations are conducted through, directly or indirectly, the Operating Partnership, of which the Company is the sole general partner and in which it held a 99.7% common interest as of June 30, 2026. Refer to Note 1- Organization in the notes to the condensed consolidated financial statements in this Quarterly Report on Form 10-Q for further information on the ownership structure. Under the agreement of limited partnership of the Operating Partnership, the Company, as the sole general partner, has exclusive responsibility and discretion in the management and control of the Operating Partnership.

As of June 30, 2026, the Company’s portfolio consisted of 2,825 properties located in all 50 states and the District of Columbia, comprised of approximately 59.6 million square feet of gross leasable area (“GLA”). The portfolio was approximately 99.8% leased and had a weighted average remaining lease term of approximately 7.7 years. A significant majority of the Company’s properties are leased to national tenants and approximately 65.8% of our annualized base rent was derived from tenants, or parent entities thereof, with an investment grade credit rating from S&P Global Ratings, Moody’s Investors Service, Fitch Ratings or the National Association of Insurance Commissioners. Substantially all of our tenants are subject to net lease agreements. A net lease typically requires the tenant to be responsible for minimum monthly rent and property operating expenses including property taxes, insurance and maintenance.

The Company elected to be taxed as a REIT for federal income tax purposes commencing with the taxable year ended December 31, 1994. We believe that we have been organized and have operated in a manner that has allowed us to qualify as a REIT for federal income tax purposes and we intend to continue operating in such a manner.

Results of Operations

Overall

The Company’s real estate investment portfolio grew from approximately $7.96 billion in net investment amount representing 2,513 properties with 52.0 million square feet of GLA as of June 30, 2025, to approximately $9.24 billion in net investment amount representing 2,825 properties with 59.6 million square feet of GLA at June 30, 2026. The Company’s real estate investments were made throughout and between the periods presented and were not all outstanding for the entire period; accordingly, a portion of the increase in rental income between periods is related to recognizing revenue in 2026 on acquisitions, development and Developer Funding Platform (“DFP”) projects that were completed during 2025. Similarly, the full rental income impact of acquisitions made during 2026 will not be realized until 2027.

33

Table of Contents

Acquisitions

The following table summarizes the acquisitions completed by the Company during the periods presented (dollars in thousands):

[[GREPCENT_TABLE]]
[["","","Three Months Ended","","Six Months Ended"],["","","June 30, 2026","","June 30, 2026"],["Number of properties acquired","","82","","167"],["Location (by state)(1)","","32","","38"],["Tenant retail sectors","","23","","27"],["Weighted-average lease term (years)","","11.2","","11.2"],["Underwritten weighted-average capitalization rate(2)","","7.0","%","","7.0","%"],["Total purchase price, including acquisition and closing costs","","$","453,264","","","$","857,599"]]
[[/GREPCENT_TABLE]]

(1)Excludes the District of Columbia, where the Company acquired its first property during the three months ended June 30, 2026.

(2)Weighted-average capitalization rate for acquisitions is the sum of contractual fixed annual rents computed on a straight-line basis over the primary lease terms and anticipated annual net tenant recoveries, divided by the aggregate purchase price for occupied properties.

Development and Developer Funding Platform

The following table summarizes the Company’s development and DFP activity during the periods presented:

[[GREPCENT_TABLE]]
[["","","Three Months Ended","","Six Months Ended"],["","","June 30, 2026","","June 30, 2026"],["Number of projects commenced","","5","","7"],["Number of ongoing projects","","10","","10"],["Number of projects delivered","","1","","5"]]
[[/GREPCENT_TABLE]]

Dispositions

The following table summarizes the Company’s disposition activity during the periods presented (dollars in thousands):

[[GREPCENT_TABLE]]
[["","","Three Months Ended","","Six Months Ended"],["","","June 30, 2026","","June 30, 2026"],["Number of properties sold","","14","","21"],["Net proceeds","","$","28,858","","","$","38,923"],["Gain on sale of assets, net","","$","2,014","","","$","3,711"]]
[[/GREPCENT_TABLE]]

Comparison of three months ended June 30, 2026 to the three months ended June 30, 2025 (dollars in thousands)

[[GREPCENT_TABLE]]
[["","","Three Months Ended June 30,","","Variance"],["","","2026","","2025","","(in dollars)","","(percentage)"],["Rental Income","","$","204,981","","","$","175,397","","","$","29,584","","","17","%"],["Real Estate Taxes","","$","15,257","","","$","12,833","","","$","2,424","","","19","%"],["Property Operating Expenses","","$","9,507","","","$","8,416","","","$","1,091","","","13","%"],["Depreciation and Amortization","","$","69,094","","","$","58,939","","","$","10,155","","","17","%"]]
[[/GREPCENT_TABLE]]

The variances in rental income, real estate taxes, property operating expenses and depreciation and amortization shown above were due to the acquisition and the ownership of an increased number of properties during the three months ended June 30, 2026, compared to the three months ended June 30, 2025, as further described under Results of Operations - Overall above.

34

Table of Contents

General and administrative expenses increased $0.7 million, or 6%, to $12.0 million for the three months ended June 30, 2026, compared to $11.3 million for the three months ended June 30, 2025. The increase was primarily the result of growth in compensation costs due to inflationary increases and higher stock-based compensation expense as a result of changing the vesting period for awards granted beginning in 2023. General and administrative expenses as a percentage of total revenue decreased to 5.8% for the three months ended June 30, 2026, compared to 6.5% for the three months ended June 30, 2025.

Interest expense, net increased $8.0 million, or 25%, to $40.3 million for the three month

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/917251/000091725126000013/adc-20251231.htm
Complete FY 2025 MD&A: /company/ADC/mda/fy2025/

Extracted from a substantive MD&A body after the formal Item 7 span was a TOC or reference stub.
Confidence: high
Filing date: 2026-02-10
Report date: 2025-12-31

Overview

The Company is a fully integrated REIT primarily focused on the ownership, acquisition, development and management of retail properties net leased to industry leading tenants. The Company was founded in 1971 by its current Executive Chairman, Richard Agree, and its common stock was listed on the NYSE in 1994. The Company’s assets are held by, and all of its operations are conducted through, directly or indirectly, the Operating Partnership, of which the Company is the sole general partner and in which the Company held a 99.7% common interest as of December 31, 2025. Refer to Note 1-Organization in the notes to the consolidated financial statements in this Form 10-K for further information on the ownership structure. Under the agreement of limited partnership of the Operating Partnership, the Company, as the sole general partner, has exclusive responsibility and discretion in the management and control of the Operating Partnership.

As of December 31, 2025, the Company’s portfolio consisted of 2,674 properties located in all 50 states and totaling approximately 55.5 million square feet of GLA. The portfolio was approximately 99.7% leased and had a weighted average remaining lease term of approximately 7.8 years. A significant majority of the Company’s properties are leased to national tenants and approximately 66.8% of our annualized base rent was derived from tenants, or parent entities thereof, with an investment grade credit rating from S&P Global Ratings, Moody’s Investors Service, Fitch Ratings or the National Association of Insurance Commissioners. A net lease typically requires the tenant to be responsible for minimum monthly rent and property operating expenses including property taxes, insurance and maintenance.

The Company elected to be taxed as a REIT for federal income tax purposes commencing with the taxable year ended December 31, 1994. We believe that we have been organized and have operated in a manner that has allowed us to qualify as a REIT for federal income tax purposes and we intend to continue operating in such a manner.

Results of Operations

Overall

The Company’s real estate investment portfolio grew from approximately $7.42 billion in net investment amount representing 2,370 properties with 48.8 million square feet of GLA as of December 31, 2024 to approximately $8.57 billion in net investment amount representing 2,674 properties with 55.5 million square feet of GLA at December 31, 2025. The Company’s real estate investments were made throughout and between the periods presented and were not all outstanding for the entire period; accordingly, a portion of the increase in rental income between periods is related to recognizing revenue in 2025 on acquisitions, development and DFP projects that were completed during 2024. Similarly, the full rental income impact of acquisitions made during 2025 will not be seen until 2026.

32

Table of Contents

Acquisitions

The following summarizes the acquisitions completed by the Company during the periods presented (dollars in thousands):

[[GREPCENT_TABLE]]
[["","","Year Ended"],["","","December 31, 2025"],["Number of properties acquired","","305"],["Location (by state)","","41"],["Tenant retail sectors","","29"],["Weighted-average lease term (years)","","11.5"],["Underwritten weighted-average capitalization rate(1)","","7.2","%"],["Total purchase price, including acquisition and closing costs","","$","1,448,066"]]
[[/GREPCENT_TABLE]]

(1)Weighted-average capitalization rate for acquisitions is the sum of contractual fixed annual rents computed on a straight-line basis over the primary lease terms and anticipated annual net tenant recoveries, divided by the aggregate purchase price for occupied properties.

Development and Developer Funding Platform

The following summarizes the Company’s development and Developer Funding Platform (“DFP”) activity during the periods presented:

[[GREPCENT_TABLE]]
[["","","Year Ended"],["","","December 31, 2025"],["Projects completed","","21"],["Projects commenced","","14"],["Projects under construction at period-end","","13"]]
[[/GREPCENT_TABLE]]

Dispositions

The following summarizes the Company’s disposition activity during the periods presented (dollars in thousands):

[[GREPCENT_TABLE]]
[["","","Year Ended"],["","","December 31, 2025"],["Number of properties sold","","22"],["Net proceeds","","$","42,067"],["Gain on sale of assets, net","","$","5,416"]]
[[/GREPCENT_TABLE]]

Comparison of Year Ended December 31, 2025 to Year Ended December 31, 2024 (dollars in thousands)

[[GREPCENT_TABLE]]
[["","","Year Ended December 31,","","Variance"],["","","2025","","2024","","(in dollars)","","(percentage)"],["Rental Income","","$","718,163","","","$","616,822","","","$","101,341","","","16","%"],["Real Estate Tax Expense","","$","52,231","","","$","46,882","","","$","5,349","","","11","%"],["Property Operating Expense","","$","33,773","","","$","26,349","","","$","7,424","","","28","%"],["Depreciation and Amortization Expense","","$","239,308","","","$","206,987","","","$","32,321","","","16","%"]]
[[/GREPCENT_TABLE]]

The variances in rental income, real estate tax expense, property operating expense and depreciation and amortization expense shown above were due to the acquisition and the ownership of an increased number of properties during the year ended December 31, 2025 compared to the year ended December 31, 2024, as further described under Results of Operations - Overall above.

General and administrative expenses increased $6.9 million, or 18%, to $44.1 million for the year ended December 31, 2025, compared to $37.2 million for the year ended December 31, 2024. The increase was primarily the result of growth in compensation costs due to inflationary increases and higher stock-based compensation expense as a result of changing the vesting period for awards granted beginning in 2023. General and administrative expenses as a percentage of total revenue increased to 6.1% for the year ended December 31, 2025 from 6.0% for the year ended December 31, 2024.

33

Table of Contents

Interest expense, net increased $25.7 million, or 24%, to $134.6 million for the year ended December 31, 2025, compared to $108.9 million for the year ended December 31, 2024. The increase in interest expense, net was primarily a result of higher levels of borrowings during the year ended December 31, 2025 compared to the year ended December 31, 2024 in order to finance the acquisition and development of additional properties. Interest expense, net increased approximately $21.5 million related to the $400.0 million 2035 Senior Unsecured Public Notes that were issued in May 2025 and the $450.0 million 2034 Senior Unsecured Public Notes that were issued in May 2024, partially offset by a decrease in interest due to the repayment of the $50.0 million 2025 Senior Unsecured Notes in May 2025. In addition, interest expense on the Revolving Credit Facility and Commercial Paper Notes increased approximately $4.8 million due to higher levels of borrowings, partially offset by lower average borrowing rates, during the year ended December 31, 2025 compared to the year ended December 31, 2024.

Provision for impairment increased $4.7 million to $11.9 million for the year ended December 31, 2025, compared to $7.2 million for the year ended December 31, 2024. Provisions for impairment are recorded when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable through operations plus estimated disposition proceeds and are not necessarily comparable period-to-period.

A net gain of $5.4 million was recognized on the sale of 22 assets and land parcels during the year ended December 31, 2025, compared to a net gain of $11.5 million recognized on the sale of 26 assets during the year ended December 31, 2024. The decrease was primarily due to lower disposition volume and lower average disposition proceeds per property in 2025 as compared to 2024. Gains and losses on sale of assets are dependent on levels of disposition activity and the carrying value of the assets relative to their sales prices. As a result, such gains on sales are not necessarily comparable period-to-period.

Income and other tax expense decreased $2.6 million to $1.7 million for the year ended December 31, 2025 compared to $4.3 million during the year ended December 31, 2024. The decrease is driven by refunds received as a result of amendments to previous years' tax returns for various state filings as well as a reduction in recurring expense levels following these amendments.

Net income increased $15.2 million, or 8%, to $205.0 million for the year ended December 31, 2025, compared to $189.8 million for the year ended December 31, 2024. The change was the result of the growth in the portfolio partially offset by the items discussed above. After allocation of income to non-controlling interest and preferred stockholders, net income attributable to common stockholders increased $15.1 million, or 8% to $196.9 million for the year ended December 31, 2025, compared to $181.8 million for the year ended December 31, 2024.

Liquidity and Capital Resources

The Company’s principal demands for funds include payment of operating expenses, payment of principal and interest on its outstanding indebtedness, dividends and distributions to its stockholders and holders of the units of the Operating Partnership (the “Operating Partnership Common Units”), and future property acquisitions and development.

In March 2025, the Operating Partnership established a commercial paper program (the “Commercial Paper Program”), pursuant to which it may issue short-term, fixed rate, unsecured commercial paper notes (the “Commercial Paper Notes”) under the exemption from registration contained in Section 4(a)(2) of the Securities Act. Amounts available under the Commercial Paper Program may be borrowed, repaid and re-borrowed from time to time, with the aggregate principal amount of the Commercial Paper Notes outstanding under the Commercial Paper Program at any time not to exceed $625.0 million. The Commercial Paper Notes can have maturities of up to 397 days from the date of issue and are guaranteed by the Company and certain wholly owned subsidiaries of the Operating Partnership.

In April 2025, the Company completed a follow-on public offering of 5,175,000 shares of common stock, including the full exercise of the underwriters’ option to purchase an additional 675,000 shares in connection with the forward sale agreements. As of December 31, 2025, the Company has not settled any of these shares. The offering is anticipated to raise net proceeds of approximately $385.8 million after deducting fees and expenses and making certain adjustments as provided in the forward sale agreements.

In May 2025, the Operating Partnership completed an underwritten public offering of $400.0 million in aggregate principal amount of its 5.600% Notes due 2035 (the “2035 Senior Unsecured Public Notes”). The public offering was priced at 99.297% of the principal amount, resulting in proceeds of $397.2 million before deducting debt issuance costs. In connection with the underwritten public offering, the Company terminated $325.0 million of forward-starting interest rate swap agreements that hedged the 2035 Senior Unsecured Public Notes, receiving $13.6 million, net upon termination.

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In addition, in May 2025, the Operating Partnership repaid the $50.0 million 2025 Senior Unsecured Notes at maturity.

On November 17, 2025, the Company entered into the First Amendment to the Fourth Amended and Restated Revolving Credit Agreement (the “First Amendment to the Revolving Credit Facility”) with PNC Bank, as administrative agent, and a syndicate of lenders named therein, and with certain indirect subsidiaries of the Borrower as guarantors. The First Amendment to the Revolving Credit Facility amends the Revolving Credit Facility by

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/ADC/mda/fy2025/
All MD&A years: /company/ADC/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/ADC/mda/fy2024/): filed 2025-02-11; accession 0001558370-25-000803 (https://www.sec.gov/Archives/edgar/data/917251/000155837025000803/adc-20241231x10k.htm)
- [FY 2023 MD&A](/company/ADC/mda/fy2023/): filed 2024-02-13; accession 0001558370-24-001056 (https://www.sec.gov/Archives/edgar/data/917251/000155837024001056/adc-20231231x10k.htm)
- [FY 2022 MD&A](/company/ADC/mda/fy2022/): filed 2023-02-14; accession 0001558370-23-001274 (https://www.sec.gov/Archives/edgar/data/917251/000155837023001274/adc-20221231x10k.htm)
- [FY 2021 MD&A](/company/ADC/mda/fy2021/): filed 2022-02-22; accession 0001558370-22-001606 (https://www.sec.gov/Archives/edgar/data/917251/000155837022001606/adc-20211231x10k.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 6798 Real Estate Investment Trusts) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units
- [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate

Macro-to-micro threads including this sector: [Interest rates & the Fed](/thread/interest-rates-fed/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/ADC.md · JSON record: /company/ADC.json · verified financials: /company/ADC/financials.json / /company/ADC/financials.csv · machine TOC for the whole site: /llms.txt