Agree Realty Corporation

Good morning and welcome to the Agree Realty second quarter 2026 earnings call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. To withdraw your question, please press star then one. Please limit yourself to two questions during this call. Note, this event is being recorded. I would now like to turn the conference over to Reuben Treatman, Senior Director of Corporate Finance. Please go ahead, Reuben.

Thank you. Good morning everyone and thank you for joining us for Agree Realty's second quarter 2026 earnings call. Before turning the call over to Joey and Peter to discuss our results for the quarter, let me first run through the cautionary language. Please note that during this call, we'll make certain statements that may be considered forward-looking under federal securities law, including statements related to our updated 2026 guidance. Our actual results may differ significantly from the matters discussed in any forward-looking statements for a number of reasons. Please see yesterday's earnings release and our SEC filings, including our latest annual report on Form 10-K, for a discussion of various risks and uncertainties underlying our forward-looking statements. In addition, we discussed non-GAAP financial measures, including core funds from operations, or core FFO, adjusted funds from operations, or AFFO, net debt to enterprise value, Fixed Charge Coverage Ratio, and Pro Forma Net Debt to Recurring EBITDA. Reconciliations of our historical non-GAAP financial measures to the most directly comparable GAAP measures can be found on our earnings release, website, and SEC filings. I'll now turn the call over to Joey.

Thanks, Reuben, and thank you all for joining us this morning. I'm extremely pleased with our performance during the second quarter, which represents a significant milestone in our company's history. During the quarter, we invested a company record of over $500 million across our three external growth platforms. While the numbers are quite impressive, the combination of real estate attributes, credit composition, and lease term similarly represent the highest quality quarter in our company's history. All three of our external growth platforms have broad and expansive pipelines. enabling us to once again raise our full year investment volume guidance to an updated range of $1.6 to $1.8 billion. The midpoint of this range surpasses last year's investment activity and represents a 24% increase over our initial investment volume guidance provided at the beginning of the year. Based on our increased investment activities and the performance of our portfolio year to date, we're raising our full year AFFO per share guidance by two cents at the midpoint to a new range of $4.57 to $4.59. This translates to nearly 6% AFO per share growth at the midpoint and underscores what has long differentiated ADC, our ability to compound consistent, reliable earnings growth while maintaining unwavering discipline to our investment and balance sheet strategies. Peter will provide further details on the guidance range and its inputs shortly. That said, the underappreciated and I believe more compelling story is the unique market position that we have now established. Over time, we have built durable competitive moats, deep retailer relationships, and an internal asset management platform that delivers a full suite of solutions to our partners. These advantages have created a differentiated business that has been over 15 years in the making. As I have said many times, spread investing is quite simple. Constructing a retail net lease leader with multiple growth frontiers wholly focused on a distinct sandbox of the country's best retailers was the ultimate goal. We are supporting this growth by continuing to invest in the people, processes, and technology that underpin our platform. That commitment to constant improvement has long been part of our DNA. Today is reflected in how we are leveraging AI across the organization to improve decision-making, streamline workflows, and Accelerate Transaction Execution. While we are already benefiting from meaningful efficiencies, we believe the longer-term opportunity is even greater as AI becomes increasingly embedded throughout our platform. Combined with enhanced integrations and the next iteration of Arc coming online later this year, these investments will further strengthen our operating leverage. Moving on to the second quarter in detail, we invested a company record of over a half a billion dollars in 102 properties across our three platforms. This includes $451 million of acquisitions across 82 retail net lease assets, the highest level of quarterly activity since the depths of COVID. The properties acquired during the quarter are leased to leading operators in the auto parts, home improvement, grocery, farm and roll supply, and convenience store sectors. Notable acquisitions during the quarter included three Walmart Supercenter ground leases in Missouri, Ohio, and Wisconsin, a Walmart neighborhood market in Oregon, a portfolio of BP-branded travel centers, and a Home Depot ground lease in New Hampshire. The acquired properties had a weighted average cap rate of 7% and a weighted average lease term of 11.2 years. Approximately 13.5% of annualized base rents acquired were derived from ground lease assets while investment-grade retailers accounted for over 73% of the annualized base rents acquired. During the second quarter, our development and DFP platforms continued to scale and set a company record for construction start volume. Five projects broke ground with total anticipated costs of approximately $88 million, including our seventh and eighth 711s currently under construction, as well as three Ross Dress for Less locations, two Burlington's, and three TGX concepts. Through June 30th, we have commenced more than $105 million of projects over three times the level achieved in the prior period, underscoring our continued progress toward our medium-term objective of $250 million of annual development and developer funding platform commencance. In total, we had 20 projects either completed or under construction during the first half of the year, representing a company record of approximately $200 million of committed capital. We anticipate development and DFP spend to materially progress in coming quarters. Construction continued on 10 projects during the quarter, with aggregate anticipated costs of over $83 million. These projects include Burlington, Sunbelt Rentals, and Ross. One project, Sunbelt Rentals in Missouri, was completed during the quarter for just over $6 million. As foreshadowed in our prior white papers, we continue to believe deeply and invest heavily in both the off-price and large format convenience store sectors. Today, we are amongst the largest owners of both in the country and have a significant pipeline of additional opportunities. On the disposition front, we sold 14 properties during the quarter for gross proceeds of approximately $30 million at a weighted average cap rate of 7%. The dispositions were primarily comprised of three Goodyear locations and four advanced auto parts stores as we continue to cull our portfolio of lower performing or Attractive 1031 Opportunities. I would note that none of the dispositions were of investment grade credit and limited term remaining of approximately 6.9 years. Our asset management team continues to address the upcoming lease maturities. We executed new leases, extensions or options on approximately 760,000 square feet of gross leaseable area during the second quarter with a recapture rate of approximately 105%. This included a Sam's Club in Maryland and a Walmart Supercenter in Georgia. In the first half of the year, we executed new leases, extensions or options in approximately 1.6 million square feet of gross leaseable area with a recapture rate of approximately 105%. We are in excellent position for the remainder of the year with just 18 leases or 40 basis points of annualized base rents maturing, which is down by over 100 basis points from the start of the year. Given the progress achieved year-to-date, our occupancy ticked up 10 basis points sequentially to match another company record of 99.8%. At quarter end, our best-in-class portfolio stood at 2,825 properties spanning all 50 states and the District of Columbia. The portfolio includes 268 ground leases comprising over 10% of annualized base rents, and our investment-grade exposure stood at nearly two-thirds of our portfolio. With that, I'll hand the call over to Peter to discuss our financial results for the quarter.