LONDON, UK / ACCESSWIRE / September 27, 2017 / Pro-Trader Daily takes a closer look at Agree Realty Corp. (NASDAQ: ADC) as the Company's stock will begin trading ex-dividend on September 28, 2017. To capture the dividend payout, investors must purchase the stock a day prior to the ex-dividend date that is by latest at the end of the trading session on September 27, 2017. Are you looking for research on dividend stocks, if so register with us now for your free membership at:
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On September 05, 2017, Agree Realty announced that its Board of Directors has authorized, and the Company has declared, a quarterly cash dividend of $0.505 per common share. The dividend is payable October 13, 2017, to shareholders of record at the close of business on September 29, 2017.
Agree Realty's indicated dividend represents a yield of 4.06%, which is substantially above the average dividend yield of 3.18% for the financial sector. This is the Company's 94th consecutive cash dividend and represents a 5.2% increase over the quarterly dividend declared in Q3 2016. Agree Realty has raised its dividend for 4 consecutive years.
Agree Realty has a dividend payout ratio of 74.5%, which means that the Company distributes approximately $0.75 for every $1.00 earned. The dividend payout ratio reflects how much amount a company is returning to shareholders versus how much money it is keeping on hand to reinvest in growth, to pay off debt, and/or add to its cash reserves.
According to analysts' estimates, Agree Realty is forecasted to report earnings of $1.72 for the next year compared to the Company's annualized dividend of $2.02. Agree Realty is a Real Estate Investment Trust (REIT) which is structured by law to distribute at least 90% of earnings. Moreover, since REITs generate income from owning portfolios of investment real estate, they are likely to have higher depreciation charges.
Since depreciation is a non-cash charge, it does not directly impact companies' ability to distribute their dividend. For this reason, Fund from Operations (FFO) is calculated by adding depreciation and amortization to earnings and subtracting any gains on sales which provides a better picture of any company's profitability and capacity to pay and to sustain dividends. For instance, net income per share attributable to Agree Realty for the three months ended June 30, 2017, increased 17.4% to $0.56 compared to $0.48 per share for the comparable period in 2016. The Company posted FFO per share for the three months ended June 30, 2017, of $0.67, up 10% compared to FFO per share of $0.61 for the comparable period in 2016. The FFO indicates that the Company should be able to sufficiently cover its dividend payout.
Agree Realty's cash and cash equivalents were $4.17 million at June 30, 2017, compared to $33.40 million at December 31, 2016. The Company's strong financial position indicates its ability to absorb any fluctuations in earnings and cash flow and to sustain the dividend distribution for a long period.
Recent Development for Agree Realty
On September 20, 2017, Agree Realty announced that it has completed a private placement of $100 million of senior unsecured notes to a group of institutional investors. The Senior Notes have a 12-year term, maturing on September 20, 2029, priced at a fixed interest rate of 4.19%. The all-in pricing represented 165 basis points above the 12-year interpolated US Treasury yield curve at the time of pricing.
With the issuance, the Company's weighted-average debt maturity is approximately 7.9 years, excluding the Company's unsecured revolving credit facility. Net proceeds from the Senior Notes will be used to reduce amounts outstanding under the Company's unsecured revolving credit facility and for general corporate purposes.
About Agree Realty Corp.
Agree Realty is a publicly traded REIT primarily engaged in the acquisition and development of properties net leased to industry leading retail tenants. The Company currently owns and operates a portfolio of 419 properties, located in 43 states and containing approximately 8.0 million square feet of gross leasable space.
Agree Realty's share price finished yesterday's trading session at $49.77, marginally falling 0.36%. A total volume of 108.08 thousand shares have exchanged hands. The Company's stock price advanced 0.79% in the previous one month, 5.09% in the last three months and 4.08% in the past six months. Additionally, the stock gained 8.08% since the start of the year. Shares of the Company have a PE ratio of 22.34 and have a dividend yield of 4.06%. The stock currently has a market cap of $1.44 billion.
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