Agree Realty (NYSE:ADC) reported first-quarter financial results on Wednesday. The transcript from the company's first-quarter earnings call has been provided below.

Agree Realty reported its largest quarterly acquisition volume since 2022, investing $403 million in acquisitions and $425 million across three external growth platforms.

The company raised approximately $660 million through forward equity and holds $2.3 billion in total liquidity, with a pro forma net debt to recurring EBITDA of 3.2 times.

The company reiterated its full-year 2026 AFFO per share guidance of $4.54 to $4.58, implying a 5.4% year-over-year growth.

Operational highlights include a sale-leaseback with Hobby Lobby and acquisitions including Home Depot, Wawa, Sherwin Williams, Aldi, and Walmart properties.

Management emphasized the robustness of its external growth pipeline and the strategic focus on high-quality retail portfolio improvements.

Reuben Treitman (Senior Director of Corporate Finance)

Thank you Peter Operator at this time let's open it up for questions.

And maybe just following up on the kind of macro uncertainty rates moving around, does this cause any kind of delay in, you know, your partner's decision making or wanting to kind of pause on any type of big plans?

No, this is totally unilateral on our side here. We have pipelines that are extensive across all three platforms. Just didn't think it was appropriate to raise investment guidance at this time in the midst of a war with J.D. Vance sitting on the Runway. Thank you. Thanks, Anna.

We'll go next to Michael Goldsmith at UBS Financial.

Good morning. Thanks all for taking my questions. You now have a record 1.4 billion of forward equity outstanding. Can you walk us through a bit about the timing of physical settlement relative to acquisition funding and how you're thinking about using the forwards versus term loans or other sources? Thanks.

Thanks for that, Peter. And then Joey, you talked on the prepared remarks about Hobby Lobby and how you've been partnering with them. Can you just talk a little bit more about what makes this particular tenant attract and just how you view the outlook for the Craft space going forward?

Thank you very much. Good luck in the second quarter.

We'll take our next question from Smedes Rose at Citi.

We'll go next to John Kielachowski at Wells Fargo.

Good morning. Thank you, Joey. That was very helpful on the 711 breakdown. I guess if you wouldn't mind maybe just talking about the rest of the portfolio. What's in got from a credit loss perspective and if there's anything else in there that you're looking at that maybe is forecasted that you know you have some expected closures or if all of that is just precautionary no, no, no.

We'll move next to Upal Rana at Keybank Capital Markets.

Great. Thank you for taking my question. On the competition and seller behavior side, you mentioned people not pulling back due to the macro volatility, but are you seeing any change in behavior due to the volatility in the 10 year? Just wondering if you're seeing any increased deal flow the past month or so that could be positively impact 2Q investment volumes.

Okay, great, that was helpful. And then acquisitions of investment graded tenants has come down again this quarter. Just curious, outside of IG credit ratings, is there something else in the lease economics that we should that you're acquiring that is a sign of higher quality that we should be considering?

Great, thank you for that. Thank you.

We'll take our next question from Rich Hightower at Barclays.

Our next question comes from Linda Tsai at Jefferies. Hi. Two questions. In your investor deck you highlight avoiding private equity ownership. Do you have a sense of what percentage of your tenants are owned by private equity and how it's trend over time in your portfolio?

So Linda, we added some new disclosure

Thanks. And then just one for Joey. You always have a clear eye view on the state of retail. I guess you said the consumer is trading down and that's been happening for quite some time. But are you seeing sectors where the consumer really is pulling back completely and then any tenant sectors where you'd be more concerned, just broadly speaking, not necessarily in your portfolio.

Thanks. Next we'll go to Eric Borden at BMO Capital Markets.

Hey, good morning. Thanks for taking my question, Joey. Just curious how cap rates are trending to start the year between investment grade and non investment grade tenants. Are you seeing any meaningful changes in the spread between the two? Just given the macro uncertainty here, we

That's helpful. And then just on the forward equity, just given the increasing diluted impact in the TSM as your share price rises, would you consider it a more balanced approach to equity issuance between forward equity and traditional etm? Or do you believe it's more prudent to keep the forward equity book full given the current macro? Sorry, there's one that I'm going off.

Thank you for the time. Thank you.

And we'll move next to Ronald Camden at Morgan Stanley.

Helpful. And then just a quick one on the so I'm looking at the recapture rates and same store rent growth on the supplement. Is that, is the 1.6, is some of that sort of volatility from quarter to quarter? Is that all the percentage rents or is there something else going on? There seems to be some seasonality to the same store rent growth. Thanks.

And that concludes our Q and A session. I will now turn the conference back over to Joey Agri for closing remarks.

Well, thank you all for joining us this morning and we look forward to seeing everyone at the upcoming conferences and appreciate your time. Thanks again.