Engineers Gate Builds $85 Million Position in Net-Lease Retail REIT Agree Realty
Key Points
Engineers Gate Manager LP bought 1,144,617 Agree Realty (ADC) shares
Quarter-end position value rose by $82.48 million, reflecting both the share increase and stock price changes
This trade represented 0.99% of the fund's 13F reportable assets under management
Fund held 1,182,229 ADC shares worth $85.16 million at quarter end
The ADC stake now accounts for 1.01% of 13F AUM, which places it outside the fund’s top five holdings
- 10 stocks we like better than Agree Realty ›
What happened
According to its SEC filing dated February 17, 2026, Engineers Gate Manager LP increased its position in Agree Realty (NYSE:ADC) by 1,144,617 shares. The fund’s ADC quarter-end value is $85.16 million, reflecting both buying activity and price appreciation.
What else to know
The fund’s ADC position now represents 1.01% of its 13F reportable assets under management after this buy
Top holdings after the filing include:
- NASDAQ: QQQ: $245.53 million (2.9% of AUM)
- NYSEMKT: SPY: $131.77 million (1.6% of AUM)
- NYSE: INVH: $114.95 million (1.4% of AUM)
- NASDAQ: SBRA: $86.07 million (1.02% of AUM)
- NYSE: FR: $78.00 million (0.93% of AUM)
As of February 16, 2026, ADC shares were priced at $78.08, up 13.4% over the past year, outperforming the S&P 500 by 1.60 percentage points.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $718.40 million |
| Net Income (TTM) | $196.46 million |
| Dividend Yield | 3.89% |
| Price (as of market close February 13, 2026) | $78.08 |
Company Snapshot
Agree Realty is a publicly traded REIT specializing in high-quality, net-leased retail properties across the U.S. The company leverages a disciplined investment strategy to build a diversified portfolio, emphasizing long-term leases with creditworthy tenants.
Agree Realty engages in the acquisition and development of net-leased retail properties, generating revenue primarily through long-term lease agreements with national and regional retail tenants. It operates as a real estate investment trust (REIT), earning income from rental payments and property appreciation, with a focus on stable, recurring cash flows.
Agree Realty serves a diverse portfolio of retail tenants across the United States, targeting leading brands in essential and value-oriented retail sectors.
What this transaction means for investors
Agree Realty Corporation’s business model is based on owning single-tenant retail properties that are leased to national retailers through long-term net-lease agreements. In this setup, tenants usually pay most of the property’s operating costs, while Agree Realty collects rent, which helps create a steady income stream. This lets the company build a portfolio of properties with long leases and reliable tenants.
Agree Realty focuses on retailers that provide everyday essentials, like grocery stores, discount chains, and other basic consumer services. Many of these tenants operate businesses tied to routine household spending, which can make them more resilient during economic slowdowns. The company grows its portfolio mainly by buying properties and through sale-leaseback deals, where retailers sell their real estate to Agree Realty but keep running their businesses under long-term leases.
For investors, the key question is whether Agree Realty can continue to grow its property portfolio while still selecting strong tenants and adhering to its leasing standards. Net-lease REITs need to buy properties that earn more than they cost to finance, so rental income can increase as the company adds new properties. If Agree Realty keeps finding properties leased to stable retailers and manages costs effectively, it could continue to deliver the steady rental income and dividends that many investors seek in net-lease REITs.
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Eric Trie has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Invitation Homes. The Motley Fool has a disclosure policy.
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