FFO-to-Net Income ratios reached 2.33 in 2026Q1, highlighting that non-cash depreciation charges significantly mask the underlying cash-generating capacity of the portfolio.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 522.63M | 504.14M | 431.97M | 391.6M | 362.12M | 246.31M | 142.96M | 126.71M | 93.25M | 82.2M | 61.73M | 44.68M | 35.1M | 29.59M | 21.21M | 25.5M | 26.11M | 23.58M | 21.93M | 21.64M | 20.3M | 19.64M | 18.3M | 15.65M | 13.66M | 13.05M | 11.6M | 12.06M | 11.16M | 9.24M | 7.71M |
| Operating CF Growth % | 56.38% | 16.71% | 10.31% | 8.14% | 47.02% | 72.3% | 12.82% | 35.88% | 13.44% | 33.15% | 38.17% | 27.31% | 18.61% | 39.54% | -16.83% | -2.35% | 10.74% | 7.52% | 1.35% | 6.6% | 3.35% | 7.33% | 16.9% | 14.59% | 4.71% | 12.44% | -3.79% | 8.09% | 20.79% | 19.79% | 16.83% |
| Operating CF / Revenue % | 69.68% | 70.18% | 70% | 72.86% | 84.25% | 72.59% | 57.51% | 67.58% | 68% | 73.71% | 67.45% | 63.86% | 65.53% | 67.99% | 61.25% | 84.25% | 95.22% | 68.54% | 61.51% | 62.78% | 61.68% | 62.2% | 63.23% | 59.69% | 59.24% | 58.79% | 51.44% | 55.07% | 56.35% | 50.2% | 47.33% |
| Net Income | 219.58M | 204.99M | 189.83M | 170.55M | 153.03M | 122.88M | 91.97M | 80.76M | 58.8M | 58.79M | 45.8M | 39.76M | 18.91M | 20.19M | 18.6M | 9.89M | 15.63M | 17.99M | 15.02M | 15.48M | 13.97M | 16.05M | 13.12M | 10.47M | 8.77M | 8.07M | 7.1M | 6.81M | 6.09M | 5.22M | 3.73M |
| Depreciation & Amortization | 278.12M | 275.72M | 240.22M | 209.37M | 166.91M | 120.01M | 82.64M | 59.2M | 43.7M | 31.75M | 23.41M | 16.49M | 12.05M | 9.48M | 7.5M | 7.16M | 6.22M | 6M | 5.56M | 5.2M | 4.99M | 207.04K | 4.62M | 4.82M | 4.22M | 4.22M | 4.06M | 3.8M | 3.51M | 3.19M | 3.03M |
| Stock-Based Compensation | 13.4M | 12.99M | 10.8M | 8.34M | 6.46M | 5.47M | 5M | 4.11M | 2.95M | 2.39M | 2.26M | 1.99M | 1.99M | 1.81M | 1.66M | 1.36M | 1.17M | 1.18M | 1.13M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 16.52M | 10.09M | -6.25M | -2.08M | 14.98M | 3.61M | 1.44M | 1.28M | 1.05M | -12.98M | 720K | 689.32K | 3.85M | 18.69K | -1.54M | 11.37M | 3.96M | 950.05K | 1.26M | 980.41K | 2.22M | 4.17M | 1.09M | 41.5K | 1.15M | 280.94K | 640.1K | 1.05M | 1.32M | 748.23K | 764.82K |
| Working Capital Changes | -5.47M | 344K | -2.64M | 5.42M | 20.74M | -8.71M | -11.27M | -7.62M | -4.39M | 2.48M | -815K | -2.29M | -1.28M | -1.4M | -4.46M | -3.95M | -305.42K | -1.59M | -1.04M | -24.86K | -884.36K | -781.47K | -537.19K | 317.47K | -484.86K | 478K | -191.1K | 407.37K | 247.49K | 75.7K | 183.29K |
| Cash from Investing | -1.59B | -1.54B | -885.41M | -1.27B | -1.62B | -1.39B | -1.3B | -667.52M | -568.12M | -319.1M | -297.55M | -202.78M | -147.7M | -85.26M | -69.26M | -29.25M | -32.82M | -8.75M | -21.42M | -18.01M | -9.31M | -5.54M | -15.14M | -15.79M | -13.24M | -3.87M | -9.38M | -10.92M | -13.03M | -8.52M | -15.19M |
| Acquisitions (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -19.76M | 0 | 0 | 216.84K | 438.49K | 673.58K | 694.32K | 694.32K | 0 | 0 | 0 | 0 |
| Purchase of Investments | 0 | 0 | 0 | 0 | -1.66B | -1.44B | -1.35B | -732.57M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.76M |
| Sale of Investments | 10.06M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | -1.19B | -1.54B | -885.41M | -1.27B | 44.41M | 55.53M | 46.47M | 65.05M | -568.12M | -319.1M | -297.55M | -202.78M | -147.7M | -85.26M | -69.26M | 7.86M | 6M | 0 | 0 | 21.5M | 0 | 9.58M | 6.36M | 3.89M | 0 | 280K | 0 | 702.23K | 655.66K | 153.06K | 144.69K |
| Cash from Financing | 1.09B | 1.05B | 445.31M | 869.01M | 1.24B | 1.18B | 1.12B | 528.99M | 470.06M | 262.28M | 266.5M | 155.41M | 103.47M | 68.94M | 47.32M | 5.16M | 6.61M | -14.81M | -387.37K | -3.55M | -16.24M | -8.97M | -3.58M | 45.95K | -430.02K | -9.2M | -2.16M | -1.07M | 1.08M | 779.61K | 6.49M |
| Dividends Paid | -361.15M | -348.09M | -311.04M | -285.11M | -227.74M | -195.82M | -116.11M | -90.26M | -67.64M | -55.15M | -42.06M | -32.99M | -25.4M | -20.86M | -17.66M | -17.4M | -19.05M | -17.13M | -16.92M | -16.5M | -16.41M | -15.78M | -13.87M | -10.78M | -9.41M | -9.36M | -9.31M | -9.3M | -9.2M | -7.5M | -5.9M |
| Common Dividends | -353.71M | -340.65M | -303.6M | -277.68M | -220.3M | -194.3M | -116.11M | -90.26M | -67.64M | -55.15M | -42.06M | -32.99M | -25.4M | -20.86M | -17.66M | -16.8M | -18.34M | -17.13M | -16.92M | -16.5M | -16.41M | -15.78M | -13.87M | -10.78M | -9.41M | -9.36M | -9.31M | -9.3M | -9.2M | -7.5M | -5.9M |
| Debt Issuance (Net) | 2M | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K | -1000K | 1000K | 648.89K | 1000K | 1000K | 1000K | -1000K | 1000K |
| Share Repurchases | -6.15M | -3.74M | -2.28M | -2.68M | -1.91M | -1.81M | -1.64M | -1.41M | -1.15M | -1.11M | -712K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -126.76K | -169.68K | 0 | 0 | 0 | -56K | 0 | 0 | 0 | 0 |
| Other Financing | 350.63M | -7.92M | -12.99M | -4.56M | -3.68M | -7.75M | -4.74M | -4.14M | -2.56M | -1M | -3.21M | -1.68M | -2.02M | -965.5K | -2.62M | -1.87M | -1.47M | -1.67M | -1.48M | -820.02K | -2.93M | -699.87K | -603.6K | -20.82M | -177.67K | -490.74K | -968.51K | -1.47M | -116.17K | -900K | -13.81M |
| Net Change in Cash | 20.04M | 14.22M | -8.13M | -14.38M | -16.34M | 37.3M | -34.2M | -11.82M | -4.81M | 25.39M | 30.68M | -2.69M | -9.14M | 13.27M | -732.64K | 1.41M | -95.39K | 20K | 124.04K | 80.91K | -5.25M | 5.13M | -416.57K | -91.52K | -6.25K | -17.21K | 54.83K | 70.08K | -791.81K | 1.49M | -989.28K |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 20.62M | 6.4M | 14.52M | 28.91M | 45.25M | 7.96M | 42.16M | 53.98M | 58.78M | 33.4M | 2.71M | 5.4M | 14.54M | 1.27M | 2M | 593.28K | 688.67K | 668.68K | 544.64K | 463.73K | 5.71M | 587.52K | 1M | 1.1M | 1.1M | 1.12M | 1.06M | 994.16K | 1.79M | 294.39K | 1.28M |
| Cash at End | 31.2M | 20.62M | 6.4M | 14.52M | 28.91M | 45.25M | 7.96M | 42.16M | 53.98M | 58.78M | 33.4M | 2.71M | 5.4M | 14.54M | 1.27M | 2M | 593.28K | 688.67K | 668.68K | 544.64K | 463.73K | 5.71M | 587.52K | 1M | 1.1M | 1.1M | 1.12M | 1.06M | 994.16K | 1.79M | 294.39K |
| Free Cash Flow | 110.3M | 504.14M | 431.97M | 391.6M | 362.12M | 246.31M | 142.96M | 126.71M | 93.25M | 82.2M | 61.73M | 44.61M | 35.1M | 29.59M | 21.21M | -11.62M | -12.71M | 14.83M | 511.41K | 1.88M | 10.99M | 4.52M | -3.41M | -4.46M | -249.81K | 8.21M | 1.52M | 437.87K | -2.53M | 558.91K | -5.87M |
| FCF Growth % | -75.99% | 16.71% | 10.31% | 8.14% | 47.02% | 72.3% | 12.82% | 35.88% | 13.44% | 33.15% | 38.38% | 27.12% | 18.61% | 39.54% | 282.55% | 8.61% | -185.7% | 2799.97% | -72.81% | -82.89% | 143.25% | 232.43% | 23.55% | -1686.7% | -103.04% | 438.65% | 247.94% | 117.3% | -552.9% | 109.53% | 55.89% |
| FCF / Revenue % | 14.71% | 70.18% | 70% | 72.86% | 84.25% | 72.59% | 57.51% | 67.58% | 68% | 73.71% | 67.45% | 63.77% | 65.53% | 67.99% | 61.25% | -38.39% | -46.35% | 43.11% | 1.43% | 5.46% | 33.4% | 14.31% | -11.79% | -17.02% | -1.08% | 36.98% | 6.75% | 2% | -12.78% | 3.04% | -36.01% |
Capital Expenditure Volatility
As reported in financial statements, ADC consistently generates FFO figures that diverge from GAAP operating cash flow, with the FFO-to-Net Income ratio reaching 2.33 in 2026Q1, suggesting that non-cash depreciation and amortization charges significantly mask the underlying cash-generating capacity of the retail portfolio.
The persistent spread between GAAP net income and FFO highlights the capital-intensive nature of real estate ownership where depreciation is a non-cash accounting reality. Investors should monitor this conversion ratio as it indicates how much of the reported earnings are truly available for reinvestment versus accounting artifacts.
Based on the company's reported figures, the dividend payout ratio relative to AFFO has remained consistently below 75% over the last ten quarters, indicating that ADC maintains a sufficient buffer to support its distribution policy despite the inherent volatility in quarterly capital deployment activities.
The dividend coverage ratio suggests a conservative approach to capital allocation, prioritizing long-term sustainability over aggressive payout increases. This margin of safety appears to provide the company with necessary flexibility to navigate periods of elevated interest rates without compromising its commitment to shareholders.
According to recent SEC filings, ADC recorded a significant capital expenditure of 412.3 million in 2026Q1, which represents a sharp departure from previous quarters where maintenance-related outflows were negligible, potentially signaling a shift toward more intensive property-level reinvestment or strategic portfolio repositioning efforts.
The sudden surge in capital outflows warrants further investigation into whether these costs are recurring tenant improvements or one-time strategic acquisitions. Such fluctuations in cash usage can temporarily distort free cash flow metrics and may necessitate increased reliance on external financing to maintain liquidity.
As evidenced by the consistent gap between Net Income and FFO, which averaged over 2.0x across the observed period, ADC's GAAP earnings appear to significantly understate the actual cash-based performance of its retail assets due to the heavy impact of non-cash depreciation charges.
The reliance on FFO as a primary performance metric is justified given that GAAP net income fails to account for the economic reality of property value retention in a triple-net lease model. Analysts should remain cautious of using GAAP-based valuation multiples, as they may lead to an inaccurate assessment of the company's true earnings power.
Quick answers to the most common questions about buying ADC stock.
Agree Realty Corporation (ADC) generated $504.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Agree Realty Corporation (ADC) generated $504.1M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Agree Realty Corporation (ADC) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Agree Realty Corporation (ADC) returned $348.1M to shareholders via cash dividends and spent $3.7M on share repurchases. This shows the company's commitment to returning capital to its equity investors.