Matteo Orsenigo

Matteo Orsenigo questioned the expected impact of Agree Realty's recent A-minus credit rating upgrade from Fitch on its cost of debt, particularly for long-term debt and term loan funding. Orsenigo also asked about the drivers behind the ramp-up of the Developer Funding Platform (DFP) and true development, given industry challenges.

Answer

Peter Coughenour, CFO, detailed an immediate 5 basis points pricing improvement on the existing 2029 term loan and commercial paper issuance. He anticipates the A-minus rating will help compress spreads and achieve better pricing in future public unsecured markets. Joey Agree, President and CEO, clarified the distinct nature of true development (e.g., 7-Eleven) and DFP (financial structures), emphasizing deep pipelines for both and that opportunities, not construction costs, are the limiting factor.

Matteo Orsenigo asked about the expected impact of the A-minus credit rating upgrade from Fitch on Agree Realty's cost of debt, including term loans and future long-term debt. He also inquired about the drivers behind the ramp-up of the development and developer funding platforms, despite industry challenges.

Answer

CFO Peter Coughenour noted an immediate 5 basis points improvement on the 2029 term loan and commercial paper, anticipating further spread compression in public unsecured markets. President and CEO Joey Agree clarified the distinct nature of true development and developer funding, highlighting deep pipelines for both platforms and external factors influencing project timing.