Agree Realty (ADC) – A Defensive Position in a High-Interest-Rate Environment
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. ...