Should You Be Optimistic on Agree Realty Corporation’s (ADC) Long-Term Prospects?

Baron Funds, an investment management company, released its “Baron Real Estate Income Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund decreased 0.23% (Institutional Shares) in the quarter compared to a 1.46% decline for the MSCI US REIT Index (the REIT Index). Since its inception on December 29, 2017, through June 30, 2025, the Fund achieved a cumulative return of 87.02%, more than double the 35.45% return of the REIT Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Baron Real Estate Income Fund highlighted stocks such as Agree Realty Corporation (NYSE:ADC). Agree Realty Corporation (NYSE:ADC) is a publicly traded real estate investment trust. The one-month return of Agree Realty Corporation (NYSE:ADC) was 1.75%, and its shares gained 1.43% of their value over the last 52 weeks. On August 11, 2025, Agree Realty Corporation (NYSE:ADC) stock closed at $72.87 per share, with a market capitalization of $8.09 billion.

Baron Real Estate Income Fund stated the following regarding Agree Realty Corporation (NYSE:ADC) in its second quarter 2025 investor letter:

“We remain optimistic about the long-term prospects for triple net REIT Agree Realty Corporation (NYSE:ADC). Investment merits include its high-quality retail real estate portfolio and tenant base, the company’s investment grade portfolio, a cost of capital advantage to pursue accretive acquisitions, and an opportunity to triple the size of the current portfolio. Agree Realty is a founder-led firm with insider ownership and shareholder interests aligned. We believe Agree Realty could be an outsized beneficiary of a decline in interest rates given its ability to drive earnings growth via accretive acquisitions and the long duration nature of its cash flows.”

Should Dividend Investors Stick with Agree Realty Corporation in this Environment

A city skyline with multiple office buildings, symbolizing the company’s diverse investments in real estate.

Agree Realty Corporation (NYSE:ADC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held Agree Realty Corporation (NYSE:ADC) at the end of the first quarter which was 37 in the previous quarter. While we acknowledge the risk and potential of Agree Realty Corporation (NYSE:ADC) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Agree Realty Corporation (NYSE:ADC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Agree Realty Corporation (NYSE:ADC) and shared the list of best dividend stocks in the REIT sector. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.