Agree Realty Corporation (NYSE:) has successfully closed a stock offering on Monday, raising capital through the sale of common stock shares. The real estate investment trust, based in Royal Oak, Michigan, entered into forward sale agreements on October 24, 2024, with Citibank, N.A., and Wells Fargo Bank, National Association, and an underwriting agreement with various parties including Citigroup Global Markets Inc. and Wells Fargo Securities, LLC.
The offering involved the issuance and sale of 5,060,000 shares of Agree Realty’s common stock at a public offering price of $74.00 per share. Additionally, the underwriters exercised an option to purchase an extra 660,000 shares of common stock on October 25, 2024, which contributed to the final closing of the sale today.
The additional capital raised from the offering is expected to support Agree Realty’s continued growth and investment in real estate properties. The shares were offered pursuant to the company’s registration statement on Form S-3ASR, which became effective on May 5, 2023.
Copies of the forward sale agreements and the underwriting agreement are included in the exhibits to this SEC filing, providing detailed information on the terms of the transaction. Agree Realty’s decision to enter into this offering aligns with its strategy to expand its portfolio and strengthen its financial position.
InvestingPro Insights
Agree Realty Corporation’s recent stock offering aligns well with its strong financial position and growth trajectory. According to InvestingPro data, the company boasts a market capitalization of $8.03 billion and has demonstrated impressive revenue growth of 17.78% over the last twelve months as of Q3 2024. This growth is complemented by a robust gross profit margin of 87.94%, highlighting the company’s operational efficiency.
InvestingPro Tips reveal that Agree Realty has maintained dividend payments for 31 consecutive years and has raised its dividend for 11 consecutive years. This consistent dividend history, coupled with a current dividend yield of 4.05%, may appeal to income-focused investors. The company’s stock has also shown significant momentum, with a 32.89% price total return over the past six months.
While these metrics paint a positive picture, it’s worth noting that the stock is trading at a high P/E ratio of 41.32, which may indicate that the market has high growth expectations for the company. Investors considering Agree Realty should be aware that InvestingPro offers 11 additional tips for a more comprehensive analysis of the company’s prospects.
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