Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2023

Summary of Significant Accounting Policies

Schedule of amortization of lease intangibles

The following schedule summarizes the Company’s amortization of lease intangibles for the three and six months ended June 30, 2023 and 2022 (presented in thousands):

	Three Months Ended				Six Months Ended
	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Lease intangibles (in-place)	$	14,183	$	10,407	$	27,807	$	19,203
Lease intangibles (above-market)		10,162		9,846		20,275		19,483
Lease intangibles (below-market)		(1,451)		(1,535)		(2,953)		(2,994)
Total	$	22,894	$	18,718	$	45,129	$	35,692

Schedule of estimated future amortization of lease intangibles

The following schedule represents estimated future amortization of lease intangibles as of June 30, 2023 (presented in thousands):

	2023
Year Ending December 31,	(remaining)		2024		2025		2026		2027		Thereafter		Total
Lease intangibles (in-place)	$	28,957	$	55,311	$	52,268	$	48,933	$	43,799	$	203,934	$	433,202
Lease intangibles (above-market)		19,329		36,050		33,716		31,987		29,588		242,126		392,796
Lease intangibles (below-market)		(2,868)		(5,237)		(4,801)		(4,448)		(4,034)		(16,884)		(38,272)
Total	$	45,418	$	86,124	$	81,183	$	76,472	$	69,353	$	429,176	$	787,726

Schedule of cash, cash equivalents and cash held in escrow

Per the requirements of Accounting Standards Update (“ASU”) 2016-18 (Topic 230, Statement of Cash Flows) the following table provides a reconciliation of cash and cash equivalents and cash held in escrow, both as reported within the Condensed Consolidated Balance Sheets, to the total of the cash and cash equivalents and cash held in escrow as reported within the Condensed Consolidated Statements of Cash Flows (presented in thousands):

	June 30, 2023		December 31, 2022
Cash and cash equivalents	$	8,068	$	27,763
Cash held in escrow		4,179		1,146
Total of cash and cash equivalents and cash held in escrow	$	12,247	$	28,909

Schedule of reconciliation of basic and diluted net earnings per common share

The following is a reconciliation of the numerator and denominator used in the computation of basic and diluted net earnings per share of common stock for each of the periods presented (presented in thousands, except for share data):

	Three Months Ended				Six Months Ended
	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Net income attributable to Agree Realty Corporation	$	40,868	$	35,973	$	82,482	$	72,086
Less: Series A preferred stock dividends		(1,859)		(1,859)		(3,718)		(3,718)
Net income attributable to common stockholders		39,009		34,114		78,764		68,368
Less: Income attributable to unvested restricted shares		(100)		(103)		(204)		(207)
Net income used in basic and diluted earnings per share	$	38,909	$	34,011	$	78,560	$	68,161
Weighted average number of common shares outstanding		93,299,541		75,277,924		91,795,061		73,385,101
Less: Unvested restricted shares		(245,671)		(240,004)		(245,671)		(240,004)
Weighted average number of common shares outstanding used in basic earnings per share		93,053,870		75,037,920		91,549,390		73,145,097
Weighted average number of common shares outstanding used in basic earnings per share		93,053,870		75,037,920		91,549,390		73,145,097
Effect of dilutive securities:
Share-based compensation		79,914		92,177		88,603		85,345
ATM Forward Equity Offerings		601		40,752		73,853		20,867
December 2021 Forward Equity Offering		—		311,848		—		179,925
May 2022 Forward Equity Offering		—		87,392		—		43,696
September 2022 Forward Equity Offering		—		—		150,444		—
Weighted average number of common shares outstanding used in diluted earnings per share		93,134,385		75,570,089		91,862,290		73,474,930
Operating Partnership Units ("OP Units")		347,619		347,619		347,619		347,619
Weighted average number of common shares and OP Units outstanding used in diluted earnings per share		93,482,004		75,917,708		92,209,909		73,822,549