Agree Realty Corporation (NYSE:ADC) Q4 2022 Results Conference Call February 15, 2023 9:00 AM ET

Company Participants

Brian Hawthorne - Director, Corporate Finance

Joey Agree - President and CEO

Peter Coughenour - CFO

Conference Call Participants

Nick Joseph - Citi

Rob Stevenson - Janney

RJ Milligan - Raymond James

Ki Bin Kim - Truist

Tayo Okusanya - Credit Suisse

Josh Dennerlein - Bank of America

Ravi Vaidya - Mizuho

Linda Tsai - Jefferies

Wes Golladay - Baird

Operator

Good morning, everyone, and welcome to the Agree Realty Fourth Quarter and Full Year 2022 Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] We do ask you please limit yourselves to two questions during the call. And please note today's conference is being recorded.

At this time, I would like to turn the conference call 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 fourth quarter and full year 2022 earnings call.

Before turning the call over to Joey and Peter to discuss our record 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 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

Thank you, Brian. Good morning and everyone thank you for joining us today.

I'm pleased to report that 2022 was another record year for our company. Notable milestones over the past 12 months included record investment activity over $1.7 billion, surpassing our record high by 20%. The addition of over 440 high-quality net lease properties to our growing portfolio, the commencement of a record 28 development and Partner Capital Solutions projects for total committed capital of nearly $110 million, the receiving of an upgraded investment grade credit rating of Baa1 and from Moody's Investors Service and positioning our balance sheet to execute in 2023 without the need for additional capital, while raising approximately $1.7 billion including $1.3 billion of equity. We closed 2022 with approximately $1.5 billion of liquidity at year-end, including more than $550 million of outstanding forward equity available at our election. Including our forward equity, pro forma net debt to recurring EBITDA was approximately 3.1 times at 12/31.