Yahoo Finance Unfavorable Market Sentiments for REITs Pulled Down Agree Realty Corporation (ADC) in Q1
Scout Investments, Inc, an affiliate of Carillon Tower Advisers, released the “Carillon Scout Mid Cap Fund” first quarter 2024 investor letter. A copy of the letter can be downloaded here. In the first quarter, most indices generated significant gains driven by more cyclical industries including energy, financials, and industrials. The combination of a positive outlook for monetary policy, low unemployment, and strong earnings growth expectations lifted the S&P 500 Index to an all-time high in the first quarter. The Russell 2000 Index continued to trade considerably below its peak, while the Russell Midcap Index neared its 2021 high. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Carillon Scout Mid Cap Fund highlighted stocks like Agree Realty Corporation (NYSE:ADC), in the first quarter 2024 investor letter. Agree Realty Corporation (NYSE:ADC) is a fully integrated real estate investment trust. The one-month return of Agree Realty Corporation (NYSE:ADC) was 2.39%, and its shares lost 5.46% of their value over the last 52 weeks. On June 18, 2024, Agree Realty Corporation (NYSE:ADC) stock closed at $61.63 per share with a market capitalization of $6.223 billion.
Carillon Scout Mid Cap Fund stated the following regarding Agree Realty Corporation (NYSE:ADC) in its first quarter 2024 investor letter:
"Finally, Agree Realty Corporation (NYSE:ADC) rounded out the top detractors. Agree is a real estate investment trust (REIT) that primarily owns neighborhood community shopping centers. REITs were generally out of favor during the quarter as the market adjusted to a higher interest rate outlook compared to the start of the year. In addition, Agree failed to offer an acquisition spend target for 2024, which may have disappointed investors. We see Agree as a lower-risk REIT with an attractive dividend yield and low to mid-single digit funds from operations growth."
Aerial view of a large urban cityscape showcasing a major real estate development.
Agree Realty Corporation (NYSE:ADC) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Agree Realty Corporation (NYSE:ADC) at the end of the first quarter which was 26 in the previous quarter. The core FFO of Agree Realty Corporation (NYSE:ADC) for the quarter was $1.01 per share, an increase of 3.5% year-over-year. While we acknowledge the potential of Agree Realty Corporation (NYSE:ADC) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Agree Realty Corporation (NYSE:ADC) and shared the list of best REIT dividend stocks to buy for 2024. In addition, please check out our hedge fund investor letters Q1 2024 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.
