ADC is the most attractive REIT opportunity based on risk-to-reward, supported by faster AFFO growth, strong balance sheet (no debt maturities until 2028), high-quality tenants, and insider buying.

Finally, I think the most attractive opportunity, perhaps in the REIT market right now, at least from a risk-to-reward perspective, is Agree Realty Corporation, ticker symbol ADC.

This is another stock that pays monthly dividends, and its earnings are growing at a very strong rate. This is a smaller and more recent real estate investment trust than Realty Income, and is therefore often referred to as Realty Income's "younger brother".

But here's what you need to know. It is true that it has decreased by approximately 6.31% since the beginning of the year until now, and by approximately 8.66%. However, as with VICI and Realty Income, the adjusted net operating cash flow (AFFO) per share continued to grow, and at a much faster rate than with those two funds.

Therefore, the valuation multiplier decreased significantly. However, it is still higher than both other funds, with an AFFO multiplier of around 14. Is this justified? Well, there are several factors to consider.

Here's what makes this box attractive. To begin with, as I mentioned earlier, adjusted net operating cash flow (AFFO) per share grows at a much faster rate than Realty Income. In fact, I recently interviewed the CEO, Joe Agri.

While adjusted net operating cash flow per share rose by about 7.4% in the second quarter of 2026, I asked him what level of dividend growth would satisfy him five years from now.

Based on the compound annual growth rate, he stated that dividend growth would be around 4.5%, which is much higher than what we would see from VICI or Realty Income. He also noted that dividend growth would be less than, or perhaps close to, the growth of adjusted net operating cash flow per share.

Therefore, it is natural for the adjusted net operating cash flow per share to be higher than 4.5% in the future. So, yes, they are growing at a faster pace. But this is not the only advantage.

Remember how the main problem for Realty Income and VICI Properties is the continued rise in the cost of debt as Treasury bond yields expand, while at the same time the share price falls.

The increased cost of debt is a major problem for many real estate investment trusts (REITs), as it will lead to higher interest expenses when refinancing their debt. But let's take a closer look at its balance sheet.

What do you notice? There are no substantial debt maturities until 2028. Therefore, they do not have to refinance their debt at higher interest rates. Interest expenses will not rise significantly over the next year and a half.

This is a major advantage for this fund, and this explains its strong credit ratings. Also, not increasing interest expenses will help to continue to grow the adjusted operating cash flow per share at a higher rate.

Not to mention that its tenants are stronger than the tenants of "Realty Inc." In fact, 65.8% of them have an investment grade rating, which is higher than the "Realty Incom" rating.

This company includes such prominent names as Walmart, Tractor Supply, Dollar General, Hobby Lobby, and many other well-known names as its most important tenants, with Walmart alone accounting for no more than 5% of its total tenants.

It is worth noting that there have been huge purchases by insiders in this real estate investment company during the past year, and even during the past few weeks. The CEO bought 7,360 shares at $68 per share, while the manager, John Recolta, bought 20,000 shares at an average price of $68.78.

Looking at insider transactions over the past year, we note a significant increase in purchases, reflecting their strong belief in this company.

So, let's look at the company from a valuation perspective, using the stock symbol data, and we'll move on to the dividend discount model. Again, let's assume the minimum that the company actually directed towards, which is 4.25%.

The fair value of the share would be around 75.58 cents, implying a potential upside of 15%. If it approaches 4.5%, its fair value will be $80.50, a potential increase of 22%. Therefore, this real estate fund is not only one of the fastest growing real estate investment funds, but its balance sheet is also very strong, and its customer base is very strong.

For this reason, yes, its shares are trading at a slight price premium. However, from a risk-to-reward perspective, this remains one of the most attractive opportunities in the market.