Transaction

  • Buy 1: Sep 13, 2023 at ~$59.7
  • Buy 2: Apr 4, 2024 at ~$56.5
  • Sell: Apr 20, 2026 at ~$80
  • Average purchase price: ~$58
  • ROI (excl. dividends): ~37% over ~2.5 years
  • CAGR: ~13% annually
  • Additionally: monthly dividends

Why I Entered

In 2023, REITs were under immense pressure. Interest rates in the U.S. were climbing, the market was pricing in a “higher for longer” scenario, and the entire sector was underweighted and avoided. Agree Realty in particular – despite being a solid, defensive company with long-term leases and high-quality tenants (e.g., Walmart) – got caught up in the broad sell-off.

The assumption was simple:

  • interest rates would eventually stabilize or start falling,
  • REITs would recover part of their losses,
  • in the meantime, dividends would reward patience.

I scaled in with two tranches. I wanted to average down and increase exposure when sentiment was at its worst.

What Happened

In 2024–2025, the market gradually rebuilt confidence in REITs. Interest rates stabilized, and capital began rotating back into defensive sectors. Valuations normalized, ADC’s price moved higher, and the monthly dividends regularly fed my account for further purchases.

The whole thing took slightly less time than I had assumed (I was aiming for ~3 years, closed after ~2.5 years).

Why I Sold

Not because the REIT had turned bad. Simply:

  • the valuation had returned to levels I considered fair,
  • the upside after a ~37% gain had become limited,
  • I decided it was better to free up capital and look for the next opportunity.

This position was defensive-opportunistic by design: buy the dip → collect dividends → sell on normalization. The scenario played out, case closed.

What Went Great

  • Entry at peak REIT sentiment bottom – rates high, everyone selling.
  • Dividends as a buffer – even when the price stalled, something was flowing in.
  • Two tranches instead of one – the second half at a lower price improved the average.

Summary

REITs operate on a relatively simple mechanism: they get cheaper when rates rise, and more expensive when rates fall or stabilize. Agree Realty was further strengthened by the quality of its assets and its stable business model. This investment showed that it pays to be patient, collect dividends, and not be afraid to buy more when everyone else is fleeing.

All in all – solid, calm, and highly predictable.