Cash flow quality is mixed: FFO of $124.3M in Q2 2026 covers dividends at 0.77 times, but AFFO turned sharply negative at -$288.0M due to a $412.3M capex surge, signaling potential strain from the acquisition spree.
Agree Realty Corporation (ADC) cash flow statement — 30-year operating, investing & financing cash flows
| 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 | 533.96M | 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 % | 59.79% | 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 % | 68.49% | 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 | 225.04M | 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 | 301.65M | 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 | 13.91M | 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 | -6.22M | 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 | -908K | 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 | -1.73B | -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 | 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 |
| Other Investing | -1.73B | -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 | 1.21B | 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 | -372.59M | -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 | -365.15M | -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 | 353.96M | -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 | 12.28M | 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 | 31.2M | 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 | 21.19M | 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 | 533.96M | 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 % | 14.51% | 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 % | 68.49% | 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% |
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.
Key Metrics
Top Statement Risk
AFFO negative due to acquisitions
Metrics are mathematically derived from official filings.
AFFO Negative Despite Dividend Coverage
ADC's AFFO turned sharply negative in Q2 2026 at -$288.0M, yet dividends were covered by FFO at 0.77 times, per recent SEC filings, signaling a cash flow strain from aggressive investment activity.
The negative AFFO in Q2 2026 is a stark departure from the positive FFO of $124.3M, indicating that recurring capital expenditures and other adjustments are consuming more than the entire FFO. This suggests that the company's aggressive acquisition pipeline is not yet generating sufficient cash flow to cover its dividend on an AFFO basis, a critical concern for income-focused investors. The dividend coverage ratio based on FFO remains above 1.0, but the AFFO deficit implies that the company may be funding its dividend through external sources or drawing down liquidity.
Capex Surge Reflects Acquisition Spree
Capital expenditures spiked to $412.3M in Q2 2026, reversing prior quarters' zero capex, as reported in financial statements, indicating a strategic shift toward portfolio expansion that may pressure near-term cash flows.
The sudden appearance of $412.3M in capex in Q2 2026, after several quarters of zero reported capex, likely represents acquisition-related spending rather than maintenance capex. This aligns with the company's record investment activity and raised guidance, but it also explains the negative FCF and AFFO. Investors should monitor whether this capex is truly growth-oriented and accretive, or if it includes hidden maintenance costs that could erode future cash flow quality.
External Funding Fuels Expansion
ADC's $1.9B liquidity and moderate debt/equity of 0.53, per company disclosures, suggest it is leveraging external funding to finance its accelerated investment pipeline, potentially straining cash flow coverage.
The company's fortress balance sheet provides ample dry powder, but the negative AFFO indicates that external funding is being used to cover both investments and dividends. The reliance on ATM equity programs and debt issuance to fund growth is a common REIT strategy, but the current cash flow deficit suggests that the cost of capital may be exceeding the returns from new investments, at least in the short term. This warrants close monitoring of the spread between acquisition cap rates and the weighted average cost of capital.
Depreciation Distorts Earnings Picture
GAAP net income of $54.7M in Q2 2026 is far below FFO of $124.3M, per reported figures, highlighting a $69.6M depreciation drag that obscures the company's true cash-generating ability.
The significant gap between net income and FFO underscores the importance of using FFO/AFFO metrics for REIT valuation. While depreciation is a non-cash charge, it reduces GAAP earnings, making the company appear less profitable than its cash flows suggest. However, the negative AFFO indicates that even after adding back depreciation, other non-cash adjustments and capital expenditures are consuming cash, so investors should not overstate the quality of earnings.
Hidden Cash Obligations Emerge
The negative AFFO in Q2 2026, as per financial statements, may indicate hidden cash obligations such as tenant improvements and leasing commissions that are not fully captured in FFO, warranting further investigation.
While the reported capex of $412.3M is likely acquisition-related, the negative AFFO suggests that recurring capex items like tenant improvements and leasing commissions are also significant. These costs are often capitalized and not fully reflected in FFO, but they represent real cash outflows that reduce distributable cash. Investors should scrutinize the breakdown of AFFO adjustments to assess the sustainability of the dividend and the true cost of portfolio growth.