Agree Realty Corp. initiated an underwritten public offering of 3.5 million shares of its common stock.

The single-tenant net-lease real estate investment trust expects to grant a 30-day option to the underwriters to acquire up to 525,000 additional shares.

Based on the company's Sept. 4 closing price of $56.60 per share, gross proceeds, including the additional-share option, are expected to total approximately $227.8 million.

In connection with the offering, Agree Realty expects to enter into a forward sale agreement with Citibank NA with respect to 4,025,000 common shares, assuming full exercise of the additional-share option.

The company aims to use any net proceeds received upon the future settlement of the forward sale agreement for property acquisitions and development projects, with any remaining funds reserved for general working capital and other corporate purposes.

Citigroup and Jefferies are the joint book-running managers for the offering.