Agree Realty Corporation closed a $350 million unsecured 5.5‑year term loan on November 18 2025, adding a new debt instrument to its capital structure. The loan carries a fixed interest rate of 4.02 % and includes a 12‑month delayed draw feature, allowing the company to access the funds when needed. The transaction expands Agree Realty’s liquidity to $2.2 billion and preserves its well‑staggered debt maturity schedule, with no material maturities until 2028. The new term loan also aligns with the company’s strategy to maintain a best‑in‑class balance sheet while funding its acquisition, development, and developer‑funding platforms.
The loan matures in May 2031 and is unsecured, providing the company with a flexible source of capital that can be drawn on as opportunities arise. By locking in a fixed rate of 4.02 % in a rising‑rate environment, Agree Realty hedges against future borrowing cost increases while keeping its debt profile stable. The 12‑month delayed draw feature gives the company the ability to tap the loan only when it needs to, reducing unnecessary interest expense.
As of the end of September 2025, Agree Realty’s total debt stood at approximately $3.39 billion, and its portfolio comprised 2,603 properties across all 50 states, totaling about 53.7 million square feet of gross leasable area. The company’s dividend yield was around 4.26 %, and Fitch Ratings assigned it an “A‑” issuer rating with a stable outlook, underscoring its strong credit profile.
CFO Peter Coughenour said the financing positions the company for continued growth and reinforces its commitment to a strong balance sheet. He noted that the loan supports the acquisition, development, and developer‑funding platforms, allowing the company to pursue new opportunities while maintaining a well‑staggered debt maturity schedule. The fixed‑rate structure also protects the company from potential interest rate hikes, providing financial flexibility for future projects.
Agree Realty has a history of using term loans to fund growth. In June 2023 the company announced a $350 million, 5.5‑year term loan at a 4.52 % rate that was expected to close in July 2023 and mature in January 2029. The 2025 loan continues that pattern, demonstrating a consistent strategy of leveraging term debt to support expansion while preserving liquidity.
Q3 2025 earnings met analyst expectations with earnings per share of $0.45 and revenue of $183.19 million, indicating operational stability. The new loan adds liquidity that can be deployed to support future acquisitions and development projects, reinforcing the company’s growth trajectory.
The transaction strengthens Agree Realty’s liquidity position, preserves its strong balance sheet, and positions the company to pursue acquisitions and development projects while maintaining a stable debt profile. The loan’s fixed rate and delayed draw feature provide flexibility and cost certainty, aligning with the company’s long‑term strategy of maintaining a best‑in‑class balance sheet and a well‑staggered debt maturity schedule.
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