Interesting REIT Agree Realty with long term potential! 🌟
Agree Realty Corporation $ADC+0.6%. This real estate investment trust (REIT) offers a dividend yield 4,9 % and represents a great long-term growth story with tremendous potential.
Agree Realty specializes in single-tenant retail properties in US. Their uniform nature makes them easily marketable and quickly replaceable. With a portfolio of more than 2 100 properties, the company is diversified enough to manage the risks associated with each location.
🔑 Key Benefits:
Diversified portfolio: Over 2,100 properties provide stability.
Net lease model: Tenants pay the majority of operating costs.
History of dividend growth: Average annual growth of 6% over the past 10 years.
The company's stock value has declined by approximately 20 %This decline is primarily due to rising interest rates, which increase the cost of financing acquisitions, so the entire real estate sector is under pressure. However, despite high rates, Agree Realty is still growing - in the first quarter of 2024, they purchased 31 properties and completed two development projects, with 14 more in the pipeline.
The real estate market is adjusting to changes in interest rates, which takes time. If you are investing for the long term, just REIT companies could be an interesting option. When the market stabilizes, Wall Street is likely to recognize the potential of this REIT, which has a very long growth trajectory.
What's your take on this company and the REIT market?