Agree Realty Corporation (NYSE:ADC) Q1 2023 Earnings Conference Call May 5, 2023 9:00 AM ET

Company Participants

Brian Hawthorne - Director, Corporate Finance

Joey Agree - President & Chief Executive Officer

Peter Coughenour - Chief Financial Officer

Conference Call Participants

Josh Dennerlein - Bank of America

Eric Wolfe - Citi

Rob Stevenson - Janney

Ravi Vaidya - Mizuho

Linda Tsai - Jefferies

Brad Heffern - RBC Capital Markets

Wes Golladay - Baird

Ki Bin Kim - Truist

Ronald Kamdem - Morgan Stanley

Tayo Okusanya - Credit Suisse

Operator

Good morning, and welcome to the Agree Realty First Quarter 2023 Conference Call. All participants will be in a listen-only mode for the duration of the call. [Operator Instructions] Please also note, that this event is being recorded today.

I would now like to turn the conference over to Brian Hawthorne, Director of Corporate Finance. Please go ahead, Brian.

Brian Hawthorne

Thank you. Good morning, everyone, and thank you for joining us for Agree Realty's first quarter 2023 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 will make certain statements that may be considered forward-looking under federal securities law. 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 discuss non-GAAP financial measures, including our core funds from operations or core FFO, adjusted funds from operations or AFFO, and net debt to recurring EBITDA. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures can be found in our earnings release, website and SEC filings.

I'll now turn the call over to Joey.

Joey Agree

Thanks, Brian, and thank you all for joining us this morning. I'm extremely pleased to report that we're off to a strong start in 2023. The lack of competition amongst both public and private buyers has provided us with greater access to attractive risk-adjusted opportunities than anticipated.

As demonstrated by our first quarter investment activity and even more evident in our pipeline and seller fatigue that's contributing to a narrowing bid-ask spread. We have seen a recent acceleration of cellular confitulation as the reality of a new pricing paradigm has begun to set in. Due to market forces, capitalized competition within our targeted sandbox is extremely limited. Our ability to quickly diligence and certainty to close our very attractive propositions for owners that have been on and off market with private purchasers. Our pipeline over the last few weeks has been very dynamic with a wide spectrum of opportunities.