UPDATE: Compass Point Reiterates Buy on Agree Realty Corporation Post Q3

Compass Point reiterated its view on Agree Realty Corporation

as it maintained its Buy rating and $31 price target. Compass Point commented, "We are increasing estimates slightly to account for the core operations beat in 3Q12. As accretive acquisitions become tougher to find relative to the company's hurdle rates, management must weigh growth vs returns. However, the company's development pipeline should support $25 million of 10% yielding deliveries per year. Based on our earnings estimates, the company's highly predictable future stream of cash flows, after principal amortization, can support a $1.72/share dividend based on a 90% CAD payout. This implies a 7.5% dividend increase, within our previously published expectation of a 5-15% increase within the next 12 months." Agree Realty Corporation closed at $25.24 on Wednesday.