W. P. Carey Announces Second Quarter 2025 Financial Results

NEW YORK, July 29, 2025 /PRNewswire/ -- W. P. Carey Inc. (NYSE:WPC) (W. P. Carey or the Company), a net lease real estate investment trust, today reported its financial results for the second quarter ended June 30, 2025.

Financial Highlights

2025 Second Quarter

    Net income attributable to W. P. Carey (millions)

$51.2

    Diluted earnings per share

$0.23

    AFFO (millions)

$282.7

    AFFO per diluted share

$1.28

Raising 2025 AFFO guidance to between $4.87 and $4.95 per diluted share, which is based on anticipated full-year investment volume of between $1.4 billion and $1.8 billion   

Second quarter cash dividend of $0.900 per share, equivalent to an annualized dividend rate of $3.60 per share, representing a 3.4% increase compared to the 2024 second quarter

Real Estate Portfolio

Investment volume of $1.1 billion completed year to date, including $548.6 million during the second quarter and $227.2 million subsequent to quarter end   

Active capital investments and commitments of $109.5 million scheduled to be completed in 2025   

Gross disposition proceeds of $565.0 million year to date, including $364.2 million during the second quarter and $71.0 million subsequent to quarter end   

Year-to-date dispositions include 15 self-storage operating properties for $175.0 million, comprising 10 sold during the second quarter and five subsequent to quarter end   

Contractual same-store rent growth of 2.3%

Balance Sheet and Capitalization

Subsequent to quarter end, issued $400 million of 4.650% Senior Unsecured Notes due 2030

 

MANAGEMENT COMMENTARY

"As we pass the midpoint of the year, we've built considerable momentum across our business, driven by strong investment activity and disciplined execution of our disposition strategy, enabling us to reinvest proceeds at attractive spreads," said Jason Fox, Chief Executive Officer. "As a result, we've raised our outlook for investment volume and increased our AFFO guidance to a range of $4.87 to $4.95 per share, representing 4.5% year-over-year growth at the midpoint.

"Looking ahead, we're well positioned for the second half of the year. With a healthy pipeline, strong internal growth, and continued portfolio performance, we remain confident in our ability to deliver sustained AFFO growth and attractive total returns, supported by a well-covered, growing dividend."

 

QUARTERLY FINANCIAL RESULTS

Revenues

Revenues, including reimbursable costs, for the 2025 second quarter totaled $430.8 million, up 10.5% from $389.7 million for the 2024 second quarter.

Lease revenues increased primarily due to net investment activity and rent escalations.   

Income from finance leases and loans receivable increased primarily as a result of net investment activity.   

Operating property revenues decreased primarily as a result of the sale of one hotel operating property during the 2024 second quarter and the conversion of certain self-storage operating properties to net leases during the 2024 third quarter and 2025 second quarter.

Net Income Attributable to W. P. Carey

Net income attributable to W. P. Carey for the 2025 second quarter was $51.2 million, down 64.2% from $142.9 million for the 2024 second quarter, due primarily to a mark-to-market loss recognized on the Company's shares of Lineage of $69.0 million during the current-year period, higher losses from remeasurement of foreign debt and a higher non-cash allowance for credit loss on finance leases and loans receivable, partially offset by higher gain on sale of real estate.

Adjusted Funds from Operations (AFFO)

AFFO for the 2025 second quarter was $1.28 per diluted share, up 9.4% from $1.17 per diluted share for the 2024 second quarter, primarily reflecting the accretive impact of net investment activity, rent escalations and leasing activity.

Note: Further information concerning AFFO, which is a non-GAAP supplemental performance metric, is presented in the accompanying tables and related notes.

Dividend

On June 12, 2025, the Company reported that its Board of Directors increased its quarterly cash dividend to $0.900 per share, equivalent to an annualized dividend rate of $3.60 per share, representing a 3.4% increase compared to the 2024 second quarter. The dividend was paid on July 15, 2025 to shareholders of record as of June 30, 2025.

 

AFFO GUIDANCE

The Company has raised its guidance range for the 2025 full year, primarily reflecting higher expected investment volume and a lower estimate of potential rent loss from tenant credit events, and currently expects to report AFFO of between $4.87 and $4.95 per diluted share, based on the following key assumptions:(i)   investment volume of between $1.4 billion and $1.8 billion, which is revised higher;(ii)   disposition volume of between $900 million and $1.3 billion, which is revised higher;(iii)  total general and administrative expenses of between $99 million and $102 million, which is revised lower;(iv)  property expenses, excluding reimbursable tenant costs, of between $50 million and $54 million, which is revised higher; and(v)  tax expense (on an AFFO basis) of between $42 million and $46 million, which is revised higher.

Note: The Company does not provide guidance on net income. The Company only provides guidance on AFFO and does not provide a reconciliation of this forward-looking non-GAAP guidance to net income due to the inherent difficulty in quantifying certain items necessary to provide such reconciliation as a result of their unknown effect, timing and potential significance. Examples of such items include impairments of assets, gains and losses from sales of assets, and depreciation and amortization from new acquisitions.

 

REAL ESTATE

Investments

Year to date, the Company completed investments totaling $1.1 billion, including $548.6 million during the 2025 second quarter and $227.2 million subsequent to quarter end.

The Company currently has six capital investments and commitments totaling $109.5 million scheduled to be completed during 2025.

During the 2025 second quarter, the Company committed to fund new capital investments and commitments totaling $108.3 million, which are scheduled to be completed in 2027.

Dispositions

Year to date, the Company disposed of 61 properties for gross proceeds totaling $565.0 million, including 46 properties during the 2025 second quarter for gross proceeds totaling $364.2 million and six properties subsequent to quarter end for gross proceeds totaling $71.0 million.   

Year to date dispositions include the sale of 15 self-storage operating properties for gross proceeds totaling $175.0 million, including 10 sold during the second quarter for gross proceeds totaling $111.5 million and five sold subsequent to quarter end for gross proceeds totaling $63.5 million.

Contractual Same-Store Rent Growth

As of June 30, 2025, contractual same-store rent growth was 2.3% year over year, on a constant currency basis.

Composition

As of June 30, 2025, the Company's net lease portfolio consisted of 1,600 properties, comprising 178 million square feet leased to 370 tenants, with a weighted-average lease term of 12.1 years and an occupancy rate of 98.2%. In addition, the Company owned 66 self-storage operating properties, four hotel operating properties and two student housing operating properties, totaling approximately 5.5 million square feet.

 

BALANCE SHEET AND CAPITALIZATION

Liquidity

As of June 30, 2025, the Company had total liquidity of $1.7 billion, including approximately $1.3 billion of available capacity under its Senior Unsecured Credit Facility (net of amounts reserved for standby letters of credit), $244.8 million of cash and cash equivalents and $135.2 million of cash held at qualified intermediaries.

Senior Unsecured Notes, Subsequent to Quarter End

As previously announced, on July 10, 2025, the Company completed an underwritten public offering of $400 million aggregate principal amount of 4.650% Senior Notes due July 15, 2030.

 

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Supplemental Information

The Company has provided supplemental unaudited financial and operating information regarding the 2025 second quarter and certain prior quarters, including a description of non-GAAP financial measures and reconciliations to GAAP measures, in a Current Report on Form 8-K filed with the Securities and Exchange Commission (SEC) on July 29, 2025, and made available on the Company's website at ir.wpcarey.com/investor-relations. 

 

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Live Conference Call and Audio Webcast Scheduled for Wednesday, July 30, 2025 at 11:00 a.m. Eastern Time Please dial in at least 10 minutes prior to the start time.

Date/Time: Wednesday, July 30, 2025 at 11:00 a.m. Eastern TimeCall-in Number: 1 (877) 465-1289 (U.S.) or +1 (201) 689-8762 (international)

Live Audio Webcast and Replay: www.wpcarey.com/earnings

 

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W. P. Carey Inc.

W. P. Carey ranks among the largest net lease REITs with a well-diversified portfolio of high-quality, operationally critical commercial real estate, which includes 1,600 net lease properties covering approximately 178 million square feet and a portfolio of 66 self-storage operating properties as of June 30, 2025. With offices in New York, London, Amsterdam and Dallas, the company remains focused on investing primarily in single-tenant, industrial, warehouse and retail properties located in the U.S. and Northern and Western Europe, under long-term net leases with built-in rent escalations.

www.wpcarey.com

 

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Cautionary Statement Concerning Forward-Looking Statements

Certain of the matters discussed in this communication constitute forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, both as amended by the Private Securities Litigation Reform Act of 1995. The forward-looking statements include, among other things, statements regarding the intent, belief or expectations of W. P. Carey and can be identified by the use of words such as "may," "will," "should," "would," "will be," "goals," "believe," "project," "expect," "anticipate," "intend," "estimate" "opportunities," "possibility," "strategy," "maintain" or the negative version of these words and other comparable terms. These forward-looking statements include, but are not limited to, statements made by Mr. Jason Fox regarding deal volume, portfolio performance and expectations for future AFFO, total returns and dividend growth. These statements are based on the current expectations of our management, and it is important to note that our actual results could be materially different from those projected in such forward-looking statements. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Other unknown or unpredictable risks or uncertainties, like the risks related to fluctuating interest rates, the impact of inflation and tariffs on our tenants and us, the effects of pandemics and global outbreaks of contagious diseases, and domestic or geopolitical crises, such as terrorism, military conflict, war or the perception that hostilities may be imminent, political instability or civil unrest, or other conflict, and those additional risk factors discussed in reports that we have filed with the SEC, could also have material adverse effects on our future results, performance or achievements. Discussions of some of these other important factors and assumptions are contained in W. P. Carey's filings with the SEC and are available at the SEC's website at http://www.sec.gov, including Part I, Item 1A. Risk Factors in W. P. Carey's Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this communication, unless noted otherwise. Except as required under the federal securities laws and the rules and regulations of the SEC, W. P. Carey does not undertake any obligation to release publicly any revisions to the forward-looking statements to reflect events or circumstances after the date of this communication or to reflect the occurrence of unanticipated events.

Institutional Investors:Peter Sands1 (212)

Individual Investors:W. P. Carey Inc.1 (212)

Press Contact:Anna McGrath1 (212)

 

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W. P. CAREY INC.

Consolidated Balance Sheets (Unaudited)

(in thousands, except share and per share amounts)

June 30, 2025

December 31, 2024

Assets

Investments in real estate:

Land, buildings and improvements, net lease and other

$              13,627,841

$              12,842,869

Land, buildings and improvements, operating properties

1,005,605

1,198,676

Net investments in finance leases and loans receivable

1,063,719

798,259

In-place lease intangible assets and other

2,407,752

2,297,572

Above-market rent intangible assets

679,068

665,495

Investments in real estate

18,783,985

17,802,871

Accumulated depreciation and amortization (a)

(3,503,850)

(3,222,396)

Assets held for sale, net

60,011

—

Net investments in real estate

15,340,146

14,580,475

Equity method investments

311,411

301,115

Cash and cash equivalents

244,831

640,373

Other assets, net

1,115,337

1,045,218

Goodwill

986,472

967,843

Total assets

$              17,998,197

$              17,535,024

Liabilities and Equity

Debt:

Senior unsecured notes, net

$                6,540,432

$                6,505,907

Unsecured term loans, net

1,199,256

1,075,826

Unsecured revolving credit facility

660,872

55,448

Non-recourse mortgages, net

235,425

401,821

Debt, net

8,635,985

8,039,002

Accounts payable, accrued expenses and other liabilities

654,958

596,994

Below-market rent and other intangible liabilities, net

111,829

119,831

Deferred income taxes

168,184

147,461

Dividends payable

201,909

197,612

Total liabilities

9,772,865

9,100,900

Preferred stock, $0.001 par value, 50,000,000 shares authorized; none issued

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