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Agree Realty Investors Agree Realty Corporation Reports Second Quarter 2021 Results RAISES 2021 ACQUISITION GUIDANCE TO $ 1.2 BILLION TO $ 1.4 BILLION ; GROUND LEASE EXPOSURE INCREASED TO A RECORD 12.7 % BLOOMFIELD HILLS , Mich . , July 26 , 2021 / PRNewswire / -- Agree Realty Corporation ( NYSE : ADC ) ( the " Company " ) today announced results for the quarter ended June 30 , 2021. All per share amounts included herein are on a diluted per common share basis unless otherwise stated . Second Quarter 2021 Financial and Operating Highlights : • Invested approximately $ 366 million in 59 retail net lease properties • Approximately 30.5 % of annualized base rents acquired were derived from ground leased assets • Net Income attributable to the Company decreased 11.5 % to $ 22.3 million ; 27.3 % decrease per share to $ 0.34 • Core Funds from Operations ( " Core FFO " ) increased 43.4 % to $ 58.6 million ; 17.3 % increase per share to $ 0.89 • Adjusted Funds from Operations ( " AFFO " ) increased 41.6 % to $ 57.6 million ; 15.9 % increase per share to $ 0.88 • Declared a July monthly dividend of $ 0.217 per share , an 8.5 % year - over - year increase Completed dual - tranche public bond offering comprised of $ 350 million of 2.00 % senior unsecured notes due 2028 and $ 300 million of 2.60 % senior unsecured notes due 2033 Completed a follow - on public offering of 4,600,000 shares of common stock , including the underwriters ' option to purchase additional shares , raising net proceeds of approximately $ 327 million • Sold 1,178,197 shares of common stock via the forward component of the Company's at - the - market equity ( " ATM " ) program for anticipated net proceeds of approximately $ 81 million . • Balance sheet positioned for growth at 3.6 times proforma net debt to recurring EBITDA ; 4.5 times excluding unsettled forward equity First Half 2021 Financial and Operating Highlights : ● • Invested a record of approximately $ 756 million in 146 retail net lease properties • Completed four development or Partner Capital Solutions ( " PCS " ) projects • Net Income attributable to the Company increased 12.8 % to $ 52.5 million ; 12.7 % decrease per share to $ 0.82 • Core FFO increased 42.7 % to $ 111.9 million ; 10.3 % increase per share to $ 1.74 • AFFO increased 41.4 % to $ 110.1 million ; 9.2 % increase per share to $ 1.71 • Settled 742,860 shares of the Company's ATM forward equity for net proceeds of approximately $ 47 million • Declared dividends of $ 1.272 per share , a 7.3 % year - over - year increase Financial Results Net Income Net Income attributable to the Company for the three months ended June 30 , 2021 decreased 11.5 % to $ 22.3 million , compared to $ 25.3 million for the comparable period in 2020. On a per share basis , net income attributable to the Company for the three months ended June 30 , 2021 decreased 27.3 % to $ 0.34 , compared to $ 0.47 per share for the comparable period in 2020 . Net Income attributable to the Company for the six months ended June 30 , 2021 increased 12.8 % to $ 52.5 million , compared to $ 46.5 million for the comparable period in 2020. On a per share basis , net income attributable to the Company for the six months ended June 30 , 2021 decreased 12.7 % to $ 0.82 , compared to $ 0.93 per share for the comparable period in 2020 . Core Funds from Operations Core FFO for the three months ended June 30 , 2021 increased 43.4 % to $ 58.6 million , compared to Core FFO of $ 40.9 million for the comparable period in 2020. Core FFO per share for the three months ended June 30 , 2021 increased 17.3 % to $ 0.89 , compared to Core FFO per share of $ 0.76 for the comparable period in 2020 . Core FFO for the six months ended June 30 , 2021 increased 42.7 % to $ 111.9 million , compared to Core FFO of $ 78.4 million for the comparable period in 2020. Core FFO per share for the six months ended June 30 , 2021 increased 10.3 % to $ 1.74 , compared to Core FFO per share of $ 1.58 for the comparable period in 2020 . Adjusted Funds from Operations AFFO for the three months ended June 30 , 2021 increased 41.6 % to $ 57.6 million , compared to AFFO of $ 40.7 million for the comparable period in 2020. AFFO per share for the three months ended June 30 , 2021 increased 15.9 % to $ 0.88 , compared to AFFO per share of $ 0.76 for the comparable period in 2020 . AFFO for the six months ended June 30 , 2021 increased 41.4 % to $ 110.1 million , compared to AFFO of $ 77.9 million for the comparable period in 2020. AFFO per share for the six months ended June 30 , 2021 increased 9.2 % to $ 1.71 , compared to AFFO per share of $ 1.57 for the comparable period in 2020 . Dividend In the second quarter , the Company declared monthly cash dividends of $ 0.217 per common share for each of April , May and June 2021. The monthly dividends reflected an annualized dividend amount of $ 2.604 per common share , representing an 8.5 % increase over the annualized dividend amount of $ 2.400 per common share from the second quarter of 2020. The dividends represent payout ratios of approximately 73 % of Core FFO per share and 74 % of AFFO per share , respectively . For the six months ended June 30 , 2021 , the Company declared monthly dividends totaling $ 1.272 per common share , a 7.3 % increase over the dividends of $ 1.185 per common share declared for the comparable period in 2020. The dividends represent payout ratios of approximately 73 % of Core FFO per share and 74 % of AFFO per share , respectively . Subsequent to quarter end , the Company declared a monthly cash dividend of $ 0.217 per common share for July 2021. The monthly dividend reflects an annualized dividend amount of $ 2.604 per common share , representing an 8.5 % increase over the annualized dividend amount of $ 2.400 per common share from the third quarter of 2020. The dividend is payable August 13 , 2021 to stockholders of record at the close of business on July 30 , 2021 . CEO Comments " We are extremely pleased with our performance during the first half of the year as we achieved record investment volume of more than $ 750 million , " said Joey Agree , President and Chief Executive Officer . " Our activities served to further strengthen our best - in - class retail portfolio , as our ground lease exposure increased to a record of nearly 13 % of annualized base rents . During the quarter we completed several strategic capital markets transactions , raising more than $ 1 billion to bolster our fortress balance sheet and position our Company for anticipated growth . " Portfolio Update As of June 30 , 2021 , the Company's portfolio consisted of 1,262 properties located in 46 states and contained approximately 26.1 million square feet of gross leasable area . The portfolio was approximately 99.5 % leased , had a weighted - average remaining lease term of approximately 9.7 years , and generated 67.7 % of annualized base