Grocery retailers are looking towards a decentralized form of e-commerce fulfillment. It involves conducting sorting and fulfillment operations at the physical retail stores using technology and robotics. One REIT with significant exposure to grocery chains is Agree Realty Corporation. The REIT also counts many other retail giants as its tenants. It, therefore, has plenty to gain or lose from the rise of e-commerce. While it may lose out if the importance of physical retail goes down, it can gain by collaborating with stores (especially grocery retailers) that wish to use their physical stores for supporting their e-commerce businesses. Agree Realty Corporation is a leading REIT specializing in triple net leases in the retail sector. If you want to buy now retail stock, then Agree Realty Corporation could be a possible option worth studying further.
Agree Realty Corporation Second-Quarter 2021 Earnings
On 26th July 2021, Agree Realty Corporation announced its second-quarter earnings for the year 2021. The core funds from operations rose from $40.9 million in Q22020 to $58.6 million, a growth of 43.4% year on year. The adjusted funds from operations also rose from $40.7 million in Q22020 to $57.6 million, a growth of 41.6% year on year. The net income decreased 11.5% from $25.3 million in Q22020 to $22.3 million. The company management informed that Agree Realty Corporation’s ground lease exposure went up to 13% of annualized base rents. In addition, acquisitions made by the REIT had a weighted-average cap rate of 6.2%. Cap rate is an important metric used in the real estate industry to indicate valuation. Agree Realty Corporation is one option to watch if you are looking to buy retail stocks 2021.
Buy Now Retail Stock
Agree Realty Corporation’s stock last traded at $67.67 on 24th September 2021. The dividend yield at the time was 3.85%. The 1-year return of the stock was 8.3% while the 5-year return was 36.87%.