Agree Realty Corporation (NYSE:ADC), a real estate investment trust, disclosed its weighted-average number of common shares outstanding for the first half of 2024. In a filing with the Securities and Exchange Commission on July 3, 2024, the company provided details necessary for calculating earnings per share (EPS).
For the three months ending June 30, 2024, the weighted-average number of common shares outstanding was 100,625,877, which was slightly adjusted for unvested restricted stock to 100,349,943 for the purpose of basic EPS. The weighted-average number of common shares for the six months ended on the same date was 100,595,525, similarly adjusted to 100,319,591 for basic EPS calculations.
When accounting for dilutive securities like share-based compensation and at-the-market (ATM) forward equity offerings, the diluted EPS figure for the three-month period includes an additional 89,582 shares from share-based compensation and 15,178 shares from ATM offerings.
For the six-month period, the increment from share-based compensation was 88,285 shares, with 7,590 shares from ATM offerings. This resulted in a diluted EPS figure based on 100,454,703 shares for the three-month period and 100,415,466 shares for the six-month period.
Moreover, Operating Partnership Units (OP Units) contributed 347,619 units to the weighted-average number of shares and OP Units used in the diluted EPS calculation for both periods, bringing the total to 100,802,322 for the three-month period and 100,763,085 for the six-month period.
The company used the treasury stock method to account for the dilutive effect of the forward equity offerings before their settlement. This method calculates the number of shares that could hypothetically be purchased at the current market price using the proceeds from the exercise of in-the-money options and warrants, thus providing a conservative measure of dilution.
The report, based on a press release statement, is part of Agree Realty's regular disclosures to investors and the market, providing transparency on the share count that forms the basis for EPS, an important metric for assessing the company's financial performance.
In other recent news, Agree Realty Corporation has been in the spotlight with several noteworthy developments. UBS initiated coverage on Agree Realty, assigning a Neutral rating due to expected moderate growth in adjusted funds from operations (AFFO) and limited growth opportunities.
The firm's projections show Agree Realty's AFFO growth at 3.9% for 2024 and 3.2% for 2025. The company has also issued conservative guidance for 2024, anticipating acquisition volumes approximately 50% lower than in 2023, indicative of the current challenging macroeconomic environment.
Agree Realty also announced the pricing of $450 million in senior unsecured notes due in 2034, aiming to support growth and improve liquidity. The proceeds are intended for general corporate use, including the reduction of the outstanding amount under its senior unsecured revolving credit facility, and to finance property acquisitions and development projects.
The company also reported robust Q1 2024 earnings, expecting to achieve an AFFO per share between $4.10 and $4.13, indicating a 4.2% year-over-year growth at the midpoint. No significant debt maturities are expected until 2028, ensuring financial stability. These are some of the recent developments for Agree Realty Corporation.
InvestingPro Insights
Agree Realty Corporation's recent disclosure of its weighted-average number of common shares outstanding is a key component in understanding the company's earnings per share (EPS), which is crucial for investors assessing the company's performance.
To complement this, InvestingPro data shows a robust revenue growth of 22.32% for the last twelve months as of Q1 2024, indicating a positive trajectory for the company's financials. With a market capitalization of $6.22 billion and a P/E ratio of 36.56, Agree Realty is trading at a high earnings multiple, which suggests that the market has high expectations for its future growth.
Investors may also find the InvestingPro Tips particularly informative: Agree Realty has a commendable track record of raising its dividend for 11 consecutive years and maintaining dividend payments for an impressive 31 years. These factors, combined with the fact that the company's liquid assets exceed short-term obligations, provide a picture of financial stability and reliability in terms of shareholder returns.
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