Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2022

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 nine months ended September 30, 2022 and 2021 (presented in thousands):

	Three Months Ended				Nine Months Ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Lease intangibles (in-place)	$	11,693	$	7,170	$	30,895	$	19,853
Lease intangibles (above-market)		10,010		8,146		29,493		21,391
Lease intangibles (below-market)		(1,636)		(1,531)		(4,630)		(4,760)
Total	$	20,067	$	13,785	$	55,758	$	36,484

Schedule of estimated future amortization of lease intangibles

The following schedule represents estimated future amortization of lease intangibles as of September 30, 2022 (presented in thousands):

	2022
Year Ending December 31,	(remaining)		2023		2024		2025		2026		Thereafter		Total
Lease intangibles (in-place)	$	12,097	$	47,153	$	43,705	$	41,309	$	38,423	$	191,309	$	373,996
Lease intangibles (above-market)		10,048		38,210		34,158		31,824		30,097		245,125		389,462
Lease intangibles (below-market)		(1,914)		(6,543)		(5,333)		(4,898)		(4,518)		(13,911)		(37,117)
Total	$	20,231	$	78,820	$	72,530	$	68,235	$	64,002	$	422,523	$	726,341

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):

	September 30, 2022		December 31, 2021
Cash and cash equivalents	$	250,487	$	43,252
Cash held in escrow		1,027		1,998
Total of cash and cash equivalents and cash held in escrow	$	251,514	$	45,250

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				Nine Months Ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Net income attributable to Agree Realty Corporation	$	39,425	$	36,663	$	111,511	$	89,123
Less: Series A preferred stock dividends		(1,859)		(289)		(5,578)		(289)
Net income attributable to common stockholders		37,566		36,374		105,933		88,834
Less: Income attributable to unvested restricted shares		(97)		(106)		(283)		(280)
Net income used in basic and diluted earnings per share	$	37,469	$	36,268	$	105,650	$	88,554
Weighted average number of common shares outstanding		79,930,394		69,304,906		75,590,841		65,826,126
Less: Unvested restricted stock		(229,258)		(202,406)		(229,258)		(202,406)
Weighted average number of common shares outstanding used in basic earnings per share		79,701,136		69,102,500		75,361,583		65,623,720
Weighted average number of common shares outstanding used in basic earnings per share		79,701,136		69,102,500		75,361,583		65,623,720
Effect of dilutive securities:
Share-based compensation		125,925		110,389		111,989		101,931
2020 ATM Forward Equity Offerings		—		268,011		—		178,321
2021 ATM Forward Equity Offerings		—		110,948		—		48,141
2022 ATM Forward Equity Offerings		156,062		—		65,932		—
December 2021 Forward Offering		—		—		119,950		—
May 2022 Forward Offering		606,323		—		231,238		—
Weighted average number of common shares outstanding used in diluted earnings per share		80,589,446		69,591,848		75,890,692		65,952,113