Agree Realty (ADC) opened Q1 2026 with total revenue of US$200.8 million and basic EPS of US$0.50, backed by funds from operations of US$125.6 million and FFO per share of US$1.04. The company reported quarterly revenue of US$169.2 million in Q1 2025 and US$200.8 million in Q1 2026, while basic EPS moved from US$0.42 to US$0.50 over the same period, giving investors a view of how the top line and per share earnings have tracked into the latest report. With trailing net profit margins in the high 20s and multi year earnings growth already reported, this update places profitability and FFO sustainability in focus for anyone reviewing the current results.

See our full analysis for Agree Realty.

With the headline numbers reported, the next step is to compare these results with the widely followed narratives around growth, income, and risk to see which views align with the latest figures and which ones may require a reassessment.

FFO trends back the income story

• Quarterly FFO moved from US$104.1 million in Q1 2025 to US$125.6 million in Q1 2026, while FFO per share went from US$0.97 to US$1.04 over the same period, with trailing twelve month FFO per share at US$4.05.
• Consensus narrative talks up resilient rental income from essential retail tenants, and these FFO figures give some context to that view:
  • Trailing twelve month FFO of US$462.5 million against total revenue of US$750.0 million ties in with the idea of a scaled portfolio generating steady cash style earnings.
  • FFO per share staying above US$4.00 on a trailing basis lines up with the focus on earnings visibility that income oriented investors often look for in a REIT.

Margins steady near 28%

• Net profit on a trailing twelve month basis is US$211.5 million on US$750.0 million of revenue, which works out to a 28.2% net margin compared with 28.8% in the prior year data.
• Consensus narrative highlights high occupancy and essential retail tenants as margin supports, and the numbers partly back that up while also hinting at pressure:
  • The move from a 28.8% to 28.2% margin shows only a small step down, which is consistent with a portfolio that is largely occupied but still dealing with costs such as interest expense.
  • With Q1 2026 net income of US$60.1 million on revenue of US$200.8 million, quarterly profitability sits in the same ballpark as the trailing margin, which aligns with the idea of relatively stable rent economics for now.

On top of that, some investors will want to see how these margin and FFO trends stack up against the more optimistic and cautious takes on the stock, which you can read in full in the See what the community is saying about Agree Realty.

Premium P/E and interest coverage risk

• The shares trade on a trailing P/E of 43.5x, above the retail REIT reference of 27.6x and peers at 24.3x, while a DCF fair value of US$166.37 sits well above the current US$76.67 share price, and interest payments are flagged as not well covered by earnings.
• Bears focus on financing risk and valuation, and the data gives them several concrete talking points:
  • The high P/E multiple compared with sector and peers, combined with the warning on interest coverage, means a lot is resting on the company continuing to support its current earnings base and servicing its debt comfortably.
  • At the same time, the DCF fair value being more than double the current share price contrasts with those concerns, so readers need to weigh the flagged risk on interest coverage against that model based valuation signal.

Skeptics point to that rich P/E and flagged interest coverage as reasons to be careful, so it is worth seeing how those concerns are laid out in the full cautious narrative before making any decisions about the stock 🐻 Agree Realty Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Agree Realty on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Mixed signals on valuation and risk so far, so if the story feels split, that is the point. Act while the details are fresh and weigh both sides by checking the 4 key rewards and 1 important warning sign

See What Else Is Out There

Agree Realty pairs a rich 43.5x P/E with flagged interest coverage concerns, which leaves valuation and balance sheet comfort as open questions for many investors.

If that mix of premium pricing and financing risk makes you uneasy, it is a smart time to compare ideas using the solid balance sheet and fundamentals stocks screener (42 results).

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.