Monthly Dividend Stock In Focus: Agree Realty

Updated on March 31st, 2025 by Felix Martinez

Real Estate Investment Trusts, or REITs for short, are a core holding for many income investors due to their high dividend yields.

At the same time, monthly dividend stocks are also appealing for income investors, due to their more frequent payout schedules.

Agree Realty (ADC) is a rarity among REITs, in that it pays a monthly dividend. Monthly dividend stocks pay shareholders 12 dividends per year instead of the more typical quarterly payments.

We created a list of 76 monthly dividend stocks (along with important financial metrics such as dividend yields and payout ratios). You can download the monthly dividend stocks spreadsheet by clicking on the link below:

Agree Realty’s dividend yield is 4.0%, more than three times the average yield of the S&P 500 Index.

Agree Realty offers a high level of dividend safety and the potential for dividend growth in the coming years. This article discusses ADC in greater detail.

Business Overview

Agree Realty is a retail Real Estate Investment Trust. Agree has developed over 40 community shopping centers throughout the Midwestern and Southeastern United States.

As of December 31, 2024, the property portfolio consisted of 2,370 properties located in 50 states and contained approximately 48.8 million square feet of gross leasable area.

At the end of the 2024 fourth quarter, Agree’s portfolio was 99.6% leased, and a weighted-average remaining lease term of approximately 7.9 years.

Just over two-thirds of annualized base rent comes from investment-grade retail tenants.

Its property portfolio is diversified and spans several industry groups, including grocery stores, home improvement retailers, auto service, and convenience stores.

Source: Investor Presentation

At the same time, Agree Realty has high-graded its portfolio by reducing its exposure to tenant groups most at risk from the current challenges, specifically the coronavirus pandemic.

For example, Agree Realty derives just 2% of its annual base rent from health clubs and fitness centers and just 1% of ABR from movie theaters. In all, Agree Realty generates two-thirds of its ABR from investment-grade tenants.

This portfolio quality is reflected in the company’s strong fundamentals. Agree Realty continues to post impressive results in a highly challenging period for many REITs, particularly those operating in the retail industry.

The company reported Q4 and full-year 2024 results, showing solid growth. In Q4, the company invested $371M in 127 properties, launched eight projects worth $45M, and increased AFFO per share by 4.7% to $1.04. It raised $651M through equity offerings and declared a $0.253 monthly dividend (up 2.4% YoY). Net income per share fell 5.7% to $0.41, while Core FFO rose 3.5% to $1.02.

For 2024, Agree Realty invested $951M in 282 properties and started 25 projects worth $115M. Net income per share grew 4.8% to $1.78, with AFFO up 4.6% to $4.14. The company issued $1.1B in forward equity, completed a $450M bond offering, and expanded its credit facility to $1.25B. Liquidity exceeded $2.0B, and its credit rating improved to BBB+. Dividends totaled $3.00 per share, up 2.8% YoY.

For 2025, the company projects AFFO per share between $4.26 and $4.30 and investments of $1.1B-$1.3B. Dispositions are expected at $10M-$50M, with expenses ranging from 5.6% to 5.9% of revenue. Monthly dividends for January and February 2025 were reaffirmed at $0.253 per share, continuing its steady shareholder returns.

Growth Prospects

Agree Realty has grown AFFO by a compound rate of 6.3% over the past ten years and by 5.9% per year over the past five years.

We expect that Agree Realty will continue to grow at a slightly slower pace of 4.0% annually for the next five years. Current growth prospects stem from the recent acquisitions announced for the year.

We see Agree Realty being able to grow AFFO through its three-pronged growth strategy revolving around acquisitions, development, and partner capital solutions.

During the fiscal year of 2024, Agree Realty invested $951 million in 282 retail net lease properties and committed over $115 million to 25 development projects.

Looking back further, it has invested over $9 billion in properties since 2010.

Source: Investor Presentation

Looking ahead, Agree Realty raised its 2025 AFFO per share guidance to $4.30 and increased its acquisition guidance to approximately $700 million.

We expect ADC to generate a 4.0% compound annual growth of FFO-per-share over the next five years.

Dividend Analysis

Prior to 2021, Agree Realty had paid a quarterly dividend like the vast majority of dividend stocks. But in 2021, the company switched to a monthly dividend schedule.

Agree Realty currently pays a monthly dividend of $0.253 per share. On an annual basis, the $3.04 dividend payout represents a 4.0% current yield.

Considering the S&P 500 Index currently yields just 1.3%, Agree Realty stock is an attractive option for income investors.

And, the company grows its dividend regularly. Agree Realty increased its dividend by approximately 5.5% per year in the past 10 years.

The dividend is also highly secure. Based on the expected AFFO of $4.30 for 2025, Agree Realty has a projected dividend payout ratio of 73% for the entire year.

Agree Realty’s payout ratio has remained highly consistent in the last decade, around the mid–70s. This is a healthy payout ratio for a REIT, which must pay out the majority of its earnings to shareholders.

The company operates a healthy balance sheet with a net debt-to-equity ratio of 0.5x, well below many other REITs. Keeping a manageable level of debt is very important for REITs to keep the cost of capital down.

The company maintains investment-grade credit ratings of BBB+.

Final Thoughts

Real Estate Investment Trusts are popular for their high dividend yields, but extreme high-yielders should be avoided. Investors should not ignore REITs with somewhat lower yields, as these REITs often have superior fundamentals.

Agree Realty is an example of this; although its 4.0% yield trails many other REITs, it makes up for this with a high dividend safety and growth rate.

As a result, we view it as a solid pick for income investors, particularly those interested in dividend growth.

Don’t miss the resources below for more monthly dividend stock investing research.

And see the resources below for more compelling investment ideas for dividend growth stocks and/or high-yield investment securities.