ADC

Agree Realty (ADC) reduced its 2026 investment volume guidance to $1.6 billion due to higher borrowing costs, prioritizing yield over transaction volume. The company's development platform activity nearly doubled year-over-year with $163 million in project commencements. With 99.8% portfolio occupancy, $2 billion in liquidity, and a conservative 3.9x net debt-to-EBITDA ratio, management expects mid-single digit AFFO per-share growth and double-digit operational returns in 2027.

Realty Income trades at a discount to peers with strong occupancy (98.8%) and a 31-year dividend growth streak, but faces headwinds from modest organic rental growth (1.2%) and rising interest rates that compress investment spreads. The company raised 2026 guidance to $10B in investments and $4.44-$4.45 AFFO per share, though analysts have downgraded earnings estimates recently. The stock carries a Zacks Rank #3 (Hold) rating.

Realty Income demonstrates portfolio resilience with 15,588 properties, 98.8% occupancy, and 8.6-year average lease terms. The company achieved a 102.7% rent recapture rate and 3.8% AFFO per share growth. However, shares have declined 14.4% over three months, and the stock carries a Zacks Rank #3 (Hold) with downward EPS estimate revisions.

Realty Income sold 177 properties for $348.6 million in net proceeds during the first half of 2026, generating $73.9 million in gains. The company invested approximately $5.3 billion during the same period with investment yields ranging from 7.2% to 8.3%.

Property sales support portfolio optimization and capital recycling, though they fund only a fraction of total deployment. The stock has underperformed over the past three months and carries a Zacks Rank #3 (Hold) rating.