W. P. Carey Broadcasts Third Quarter 2024 Monetary Outcomes By Investing.com

NEW YORK, Oct. 29, 2024 /PRNewswire/ — W. P. Carey Inc. (NYSE: NYSE:) (W. P. Carey or the Firm), a web lease actual property funding belief, at present reported its monetary outcomes for the third quarter ended September 30, 2024.

Monetary Highlights

• 2024 AFFO steerage vary narrowed to between $4.65 and $4.71 per diluted share primarily based on anticipated full yr funding quantity of between $1.25 billion and $1.75 billion
• Third quarter money dividend of $0.875 per share, equal to an annualized dividend charge of $3.50 per share

Actual Property Portfolio

• Funding quantity of $971.4 million accomplished yr to this point, together with $167.0 million through the third quarter and $230.8 million subsequent to quarter finish
• Energetic capital investments and commitments of $38.0 million scheduled to be accomplished within the fourth quarter
• Gross disposition proceeds of $1.2 billion accomplished yr to this point, together with $81.8 million through the third quarter and $79.8 million subsequent to quarter finish
• Entered into agreements to transform 16 current self-storage working properties to web leases
• Contractual same-store hire progress of two.8%

Steadiness Sheet and Capitalization

• Repaid €500 million of two.25% Senior Unsecured Notes due July 2024
• Credit score facility and time period loans amended to include a sustainability-linked function

MANAGEMENT COMMENTARY

“With close to $1 billion of deals completed so far this year and a near-term pipeline in excess of $500 million, we’re well positioned to reach or exceed the $1.5 billion midpoint of our 2024 investment volume guidance, depending on the specific timing of deal closings,” stated Jason Fox, Chief Govt Officer of W. P. Carey.

“We generally expect to fund our investments in the fourth quarter with the cash we’ve built up. We also believe the alternative sources of capital available to us ” primarily through operating asset sales ” will enable us to continue to make accretive investments throughout 2025, without the need to issue equity. These factors, along with a constructive investment backdrop, the completion of our exit from office and the strength our rent growth, all support AFFO growth in 2025, despite the potential impacts of certain tenant-related issues.”

QUARTERLY FINANCIAL RESULTS

Word: Efficient January 1, 2024, the Firm now not individually analyzes its enterprise between actual property operations and funding administration operations, and as an alternative views the enterprise as one reportable section. On account of this variation, the Firm has conformed prior interval section info to replicate the way it at present views its enterprise.

Revenues

• Revenues, together with reimbursable prices, for the 2024 third quarter totaled $397.4 million, down 11.4% from $448.6 million for the 2023 third quarter.
  • Lease revenues decreased primarily because of executing the Firm’s strategic plan to exit the workplace belongings inside its portfolio, together with the NLOP Spin-Off in November 2023 and tendencies underneath the Workplace Sale Program throughout 2023 and 2024.
  • Revenue from finance leases and loans receivable decreased primarily because of the disposition of the U-Haul portfolio through the 2024 first quarter.
  • Working property revenues decreased primarily because of the sale of eight resort working properties throughout 2023 and one through the 2024 second quarter (out of 12 resort properties that transformed from web lease to working upon lease expiration through the 2023 first quarter).

Web Revenue Attributable to W. P. Carey

• Web earnings attributable to W. P. Carey for the 2024 third quarter was $111.7 million, down 10.6% from $125.0 million for the 2023 third quarter, due primarily to a mark-to-market loss acknowledged on the Firm’s shares of Lineage of $43.6 million through the current-year interval and the affect of the NLOP Spin-Off and tendencies underneath the Workplace Sale Program. These declines have been partly offset by a $31.8 million acquire on change in command of pursuits acknowledged in reference to our acquisition of a 3rd get together three way partnership associate’s curiosity in 9 self-storage working properties (see Self-Storage Transaction).

Adjusted Funds from Operations (AFFO)

• AFFO for the 2024 third quarter was $1.18 per diluted share, down 10.6% from $1.32 per diluted share for the 2023 third quarter, primarily reflecting the affect of the NLOP Spin-Off and tendencies underneath the Workplace Sale Program.

Word: Additional info regarding AFFO, which is a non-GAAP supplemental efficiency metric, is offered within the accompanying tables and associated notes.

Dividend

• On September 19, 2024, the Firm reported that its Board of Administrators declared a quarterly money dividend of $0.875 per share, equal to an annualized dividend charge of $3.50 per share. The dividend was paid on October 15, 2024 to shareholders of document as of September 30, 2024.

AFFO GUIDANCE

• The Firm has narrowed its steerage vary for the 2024 full yr and at present expects to report AFFO of between $4.65 and $4.71 per diluted share primarily based on the next key assumptions:

(i) funding quantity of between $1.25 billion and $1.75 billion, which is unchanged;

(ii) disposition quantity of between $1.3 billion and $1.4 billion, which is revised greater on the backside finish of the vary, together with:

(a) completion of the Firm’s strategic plan to exit workplace, together with asset gross sales underneath the Workplace Sale Program totaling roughly $550 million;

(b) completion of the U-Haul buy choice through the 2024 first quarter, which generated gross proceeds of $464 million; and

(c) different tendencies totaling between $300 million and $400 million, which is revised greater;

(iii) complete basic and administrative bills of between $98 million and $100 million, which is revised decrease on the prime finish of the vary.

Word: The Firm doesn’t present steerage on web earnings. The Firm solely offers steerage on AFFO and doesn’t present a reconciliation of this forward-looking non-GAAP steerage to web earnings as a result of inherent issue in quantifying sure gadgets obligatory to supply such reconciliation because of their unknown impact, timing and potential significance. Examples of such gadgets embody impairments of belongings, positive aspects and losses from gross sales of belongings, and depreciation and amortization from new acquisitions.

REAL ESTATE

Investments

• Yr to this point, the Firm accomplished investments totaling $971.4 million, together with $167.0 million through the 2024 third quarter and $230.8 million subsequent to quarter finish.
• The Firm at present has two capital investments and commitments totaling $38.0 million scheduled to be accomplished throughout 2024.

Inclinations

• Yr to this point, the Firm accomplished tendencies totaling $1.2 billion, together with seven properties for gross proceeds totaling $81.8 million through the 2024 third quarter (comprising two properties underneath the Workplace Sale Program for gross proceeds totaling $50.9 million and 5 non-Workplace Sale Program properties for gross proceeds totaling $30.9 million), and one property for gross proceeds of $79.8 million subsequent to quarter finish.
• The Firm has successfully accomplished the strategic plan it introduced on September 21, 2023 to exit the workplace belongings inside its portfolio via (i) the spin-off of 59 workplace properties into Web Lease Workplace Properties, a separate publicly-traded REIT, which was accomplished on November 1, 2023 (the NLOP Spin-Off), and (ii) the disposition of 85 properties retained by W. P. Carey underneath a sale program (the Workplace Sale Program).

Contractual Similar-Retailer Hire Development

• As of September 30, 2024, contractual identical retailer hire progress was 2.8% yr over yr, on a relentless forex foundation.

Conversion of Self-Storage Working Properties to Web Leases and Joint Enterprise Buyout (Self-Storage Transaction)

• On September 1, 2024, the Firm entered into agreements with Additional House Storage (NYSE:) Inc. (Additional House) to transform 16 self-storage working properties to web leases, every with a time period of 25 years and stuck annual hire escalations plus a variable element primarily based on income progress. Twelve self-storage working properties transformed to web leases on September 1, 2024, with the remaining 4 properties anticipated to transform in 2025.
• In reference to the agreements, the Firm additionally amended the phrases of its current web lease agreements with Additional House on 27 properties, extending the time period to 25 years and resetting base rents greater to a complete of $26.2 million yearly commencing on September 1, 2024, and additional to a complete of $28.0 million yearly commencing on March 1, 2025, with fastened annual hire escalations plus a variable element primarily based on income progress.
• Additionally efficient on September 1, 2024, the Firm accomplished the buyout of its three way partnership associate’s 10% curiosity in 9 of the self-storage working properties being transformed to web leases for $10.5 million.
• On account of these transactions, Additional House grew to become the Firm’s largest tenant by ABR, with 39 properties underneath web leases producing ABR totaling $35.6 million, or 2.7% of complete ABR, and a remaining lease time period of 24.9 years, as of September 30, 2024.

True Worth Chapter

• As beforehand introduced, on October 14, 2024, the Firm’s tenant, True Worth Firm, L.L.C. (True Worth), introduced that it had initiated voluntary Chapter 11 proceedings within the U.S. Chapter Court docket for the District of Delaware and that it had entered into an settlement to promote considerably all of its enterprise operations to Do it Finest Corp.
• As of September 30, 2024, the Firm web leased 9 properties to True Worth via two grasp leases and three particular person leases that in combination generated $18.8 million, or 1.4%, of the Firm’s ABR (rating it because the fifteenth largest tenant) and had a weighted-average lease time period of 13.8 years.
• True Worth stays present on hire, having paid considerably all hire owed via the top of the yr.

Composition

• As of September 30, 2024, the Firm’s web lease portfolio consisted of 1,430 properties, comprising 172 million sq. toes leased to 346 tenants, with a weighted-average lease time period of 12.2 years and an occupancy charge of 98.8%. As well as, the Firm owned 78 self-storage working properties, 4 resort working properties and two scholar housing working properties, totaling roughly 6.4 million sq. toes.

BALANCE SHEET AND CAPITALIZATION

Liquidity

• As of September 30, 2024, the Firm had complete liquidity of $2.6 billion, together with roughly $1.8 billion of obtainable capability underneath its Senior Unsecured Credit score Facility (web of quantities reserved for standby letters of credit score) and $818.2 million of money and money equivalents.

Senior Unsecured Notes

• On July 19, 2024, the Firm repaid €500 million of two.25% Senior Unsecured Notes due July 2024.

Sustainability-Linked Modification to Credit score Facility and Time period Loans

• In the course of the 2024 third quarter, the Firm executed amendments to its credit score facility and time period loans to include a sustainability-linked function that gives for rate of interest and facility charge changes if sure key efficiency indicators, primarily associated to emissions discount targets, are met.

Supplemental Info

The Firm has supplied supplemental unaudited monetary and working info relating to the 2024 third quarter and sure prior quarters, together with an outline of non-GAAP monetary measures and reconciliations to GAAP measures, in a Present Report on Type 8-Ok filed with the Securities and Trade Fee (SEC) on October 29, 2024, and made out there on the Firm’s web site at ir.wpcarey.com/investor-relations.

Stay Convention Name and Audio Webcast Scheduled for Wednesday, October 30, 2024 at 11:00 a.m. Japanese Time
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Date/Time: Wednesday, October 30, 2024 at 11:00 a.m. Japanese Time
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W. P. Carey Inc.

W. P. Carey ranks among the many largest web lease REITs with a well-diversified portfolio of high-quality, operationally essential business actual property, which incorporates 1,430 web lease properties protecting roughly 172 million sq. toes and a portfolio of 78 self-storage working properties as of September 30, 2024. With places of work in New York, London, Amsterdam and Dallas, the corporate stays targeted on investing primarily in single-tenant, industrial, warehouse and retail properties positioned within the U.S. and Northern and Western Europe, underneath long-term web leases with built-in hire escalations.

www.wpcarey.com

Cautionary Assertion Regarding Ahead-Wanting Statements

Sure of the issues mentioned on this communication represent forward-looking statements throughout the which means of the Securities Act of 1933 and the Securities Trade Act of 1934, each as amended by the Personal Securities Litigation Reform Act of 1995. The forward-looking statements embody, amongst different issues, statements relating to the intent, perception or expectations of W. P. Carey and will be recognized by way of phrases similar to “may,” “will,” “should,” “would,” “will be,” “goals,” “believe,” “project,” “expect,” “anticipate,” “intend,” “estimate” “opportunities,” “possibility,” “strategy,” “maintain” or the unfavorable model of those phrases and different comparable phrases. These forward-looking statements embody, however are usually not restricted to, statements made by Mr. Jason Fox relating to deal quantity, sources of capital, and expectations for future AFFO progress. These statements are primarily based on the present expectations of our administration, and it is very important observe that our precise outcomes could possibly be materially totally different from these projected in such forward-looking statements. There are a variety of dangers and uncertainties that would trigger precise outcomes to vary materially from the forward-looking statements. Different unknown or unpredictable dangers or uncertainties, just like the dangers associated to fluctuating rates of interest, the affect of inflation on our tenants and us, the results of pandemics and world outbreaks of contagious illnesses, and home or geopolitical crises, similar to terrorism, army battle, warfare or the notion that hostilities could also be imminent, political instability or civil unrest, or different battle, and people extra threat elements mentioned in experiences that we’ve filed with the SEC, might even have materials hostile results on our future outcomes, efficiency or achievements. Discussions of a few of these different essential elements and assumptions are contained in W. P. Carey’s filings with the SEC and can be found on the SEC’s web site at http://www.sec.gov, together with Half I, Merchandise 1A. Danger Elements in W. P. Carey’s Annual Report on Type 10-Ok for the fiscal yr ended December 31, 2023. Traders are cautioned to not place undue reliance on these forward-looking statements, which converse solely as of the date of this communication, until famous in any other case. Besides as required underneath the federal securities legal guidelines and the foundations and rules of the SEC, W. P. Carey doesn’t undertake any obligation to launch publicly any revisions to the forward-looking statements to replicate occasions or circumstances after the date of this communication or to replicate the incidence of unanticipated occasions.

Institutional Traders:
Peter Sands1 (212) 492-1110
institutionalir@wpcarey.com

Particular person Traders:
W. P. Carey Inc.
1 (212) 492-8920
ir@wpcarey.com

Press Contact:
Anna McGrath1 (212) 492-1166
amcgrath@wpcarey.com

Non-GAAP Monetary Disclosure

Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO)

As a result of sure distinctive working traits of actual property corporations, as mentioned beneath, the Nationwide Affiliation of Actual Property Funding Trusts (NAREIT), an business commerce group, has promulgated a non-GAAP measure often known as FFO, which we consider to be an acceptable supplemental measure, when used along with and along with outcomes offered in accordance with GAAP, to replicate the working efficiency of a REIT. The usage of FFO is advisable by the REIT business as a supplemental non-GAAP measure. FFO isn’t equal to, nor an alternative choice to, web earnings or loss as decided underneath GAAP.

We outline FFO, a non-GAAP measure, in line with the requirements established by the White Paper on FFO authorised by the Board of Governors of NAREIT, as restated in December 2018. The White Paper defines FFO as web earnings or loss computed in accordance with GAAP, excluding positive aspects or losses from the sale of sure actual property, impairment expenses on actual property or different belongings incidental to the corporate’s principal enterprise, positive aspects or losses on adjustments in command of pursuits in actual property and depreciation and amortization from actual property belongings; and after changes for unconsolidated partnerships and collectively owned investments. Changes for unconsolidated partnerships and collectively owned investments are calculated to replicate FFO on the identical foundation.

We additionally modify the NAREIT computation of FFO to regulate GAAP web earnings for sure non-cash expenses, similar to amortization of actual estate-related intangibles, deferred earnings tax advantages and bills, straight-line hire and associated reserves, different non-cash hire changes, non-cash allowance for credit score losses on loans receivable and finance leases, stock-based compensation, non-cash environmental accretion expense, amortization of reductions and premiums on debt and amortization of deferred financing prices. Our evaluation of our operations is targeted on long-term sustainability and never on such non-cash gadgets, which can trigger short-term fluctuations in web earnings however don’t have any affect on money flows. Moreover, we exclude non-core earnings and bills, similar to positive aspects or losses from extinguishment of debt, merger and acquisition bills, and spin-off bills. We additionally exclude realized and unrealized positive aspects/losses on international forex change charge actions (aside from these realized on the settlement of international forex derivatives), which aren’t thought of elementary attributes of our marketing strategy and don’t have an effect on our general long-term working efficiency. We confer with our modified definition of FFO as AFFO. We exclude this stuff from GAAP web earnings to reach at AFFO as they don’t seem to be the first drivers in our decision-making course of and excluding this stuff offers traders a view of our portfolio efficiency over time and makes it extra akin to different REITs which are at present not engaged in acquisitions, mergers and restructuring, which aren’t a part of our regular enterprise operations. AFFO additionally displays changes for unconsolidated partnerships and collectively owned investments. We use AFFO as one measure of our working efficiency after we formulate company objectives, consider the effectiveness of our methods and decide govt compensation.

We consider that AFFO is a helpful supplemental measure for traders to think about as we consider it is going to assist them to raised assess the sustainability of our working efficiency with out the possibly distorting affect of those short-term fluctuations. Nonetheless, there are limits on the usefulness of AFFO to traders. For instance, impairment expenses and unrealized international forex losses that we exclude might change into precise realized losses upon the last word disposition of the properties within the type of decrease money proceeds or different concerns. We use our FFO and AFFO measures as supplemental monetary measures of working efficiency. We don’t use our FFO and AFFO measures as, nor ought to they be thought of to be, options to web earnings computed underneath GAAP, or as options to web money supplied by working actions computed underneath GAAP, or as indicators of our means to fund our money wants.