1 Green Flag Positioning This Exceptional Passive Income Stock for Another Big Year
Agree Realty (NYSE: ADC) defied the odds last year. Shares of the real estate investment trust (REIT) fell less than 1%, which was massive outperformance considering the average REIT lost a quarter of its value. A big driver was the company's ability to invest a record $1.71 billion in expanding its real estate portfolio last year. Agree Realty could go on the offensive in a tough year in the real estate market because it pre-funded its capital needs.
The company appears poised for another big year. One green flag driving that view: It has already fully funded its balance sheet for its 2023 investment activity, meaning it can capitalize on current market conditions to keep expanding its portfolio. That positions the REIT to continue growing its monthly dividend, which yields 4%.
Agree Realty spent $1.59 billion to acquire 434 retail properties net leased to tenants for a weighted average remaining term of 10.2 years. That's about $200 million more than the prior record of $1.39 billion of acquisitions in 2021. Roughly 69.4% of the acquired properties' annual base rent (ABR) will come from tenants with investment-grade credit ratings. That pushed its portfolio total to 67.8% of ABR from investment-grade tenants.
Source Fool.com
