Agree Realty Corporation is a retail-focused REIT. It has the highest share of retail clients among its peer group. Agree Realty Corporation, however, has high-quality tenants. About 67% of its tenant portfolio is investment grade. The occupancy level for Agree Realty Corporation in 2020 was 99.4%, which is a positive given the troubles that the retail sector went through as a result of the pandemic. If you are looking to invest in the best retail stocks long-term, you might want to dive deeper into Agree Realty Corporation. The REIT has been listed on the NYSE since 1994. It has a strong track record of consistently paying dividends and generally increasing the payouts over time. The only time it had to reduce dividend payouts was in 2010-2011. Other than that exception, Agree Realty Corporation has either maintained its dividend payouts or increased them every year.
Agree Realty Corporation Announces Q12021 Earnings Results
On 4th May 2021, Agree Realty Corporation released its first-quarter 2021 earnings results. Total revenue was up from $55 million in Q12020 to $77 million. Net income per share on a diluted basis rose slightly from $0.46 in Q12020 to $0.48. The adjusted funds from operations also went up marginally from $0.81 in Q12020 to $0.83. Joel Agree, CEO, Agree Realty Corporation, pointed out that the REIT had collected 99% of its rent payments for the previous eight consecutive months. Less than 1% of the expected rental payments in Q12021 went into deferral agreements. Such a robust collection is a sign of one of the best retail stocks 2021.
Investing in retail for the long term requires one to think about how retail is changing. Digital and e-commerce have brought about fundamental shifts in the industry. Retail businesses that are turning to an omnichannel strategy that involves both online and offline are the kind of tenants that a good retail REIT should be focusing on. After all, such tenants are the ones who will likely survive the industry transformation and grow into the future. Long term retail stocks for investing have to embrace technology to be successful.