Key Highlights

  • W. P. Carey AFFO was $1.33 per diluted share, up 6.4% from $1.25 and just below the prior quarter's $1.34.
  • Diluted EPS was $0.61 versus $0.64 a year earlier, after a $35.8 million unrealized loss on shares held.
  • 2026 AFFO guidance was raised to $5.23 to $5.29 from $5.19 to $5.27.
  • Year-to-date investments reached $1.6 billion, within a raised investment volume range of $1.8 billion to $2.1 billion.
  • The quarterly dividend is $0.950 per share, up 4.4% from $0.910.

W. P. Carey Earnings: Why Did It Raise 2026 AFFO Guidance to $5.23-$5.29?

W. P. Carey (NYSE:WPC) reported third-quarter results on Tuesday, October 27, with AFFO of $308.2 million, or $1.33 per diluted share, up 6.4% from $1.25. Nine-month AFFO was $3.97 per share versus $3.70. Total revenues were $468.3 million, up 8.6% from $431.3 million.

Guidance was raised to $5.23 to $5.29 per share, about 5.8% growth at the midpoint, from $5.19 to $5.27. The company cited a more favourable outlook for potential rent loss and lower projected tax expense, partly offset by one-time rent abatements, mainly in the fourth quarter, tied to releasing activity.

Tax expense on an AFFO basis is now seen at $40 million to $43 million, from $43 million to $47 million. General and administrative expense is guided to $104 million to $106 million.

GAAP Earnings: Why Did EPS Slip to $0.61?

Net income attributable to W. P. Carey was $141.0 million, flat year over year, and diluted EPS was $0.61 versus $0.64. Other losses of $41.6 million included a $35.8 million unrealized mark-to-market loss on shares of a publicly traded holding and a $7.5 million credit loss allowance.

Gains on real estate sales fell to $7.0 million from $44.4 million, but impairment charges dropped to $6.1 million from $19.5 million. Management said lower gains were largely offset by accretive investments and lower impairments.

Investment Pipeline: Is Deal Volume Holding Up as Rates Rise?

The net lease company reported investments of $181.9 million in the quarter and $1.6 billion year to date, including $143.2 million after quarter end. Guidance for full-year investment volume is $1.8 billion to $2.1 billion, up from $1.7 billion to $2.1 billion. Disposition volume is guided to $350 million to $450 million, narrowed from $350 million to $550 million.

The chief executive said higher interest rates have added uncertainty to the transaction market, but management is confident volume will stay within guidance, with a path to the top half of the range. Repricing is starting to appear, which could create more attractive opportunities for 2027.

Scheduled completions total $95.2 million in the fourth quarter, $204.8 million in 2027 and $25.2 million in 2028.

Portfolio and Balance Sheet: What Should Investors Watch Next?

The portfolio held 1,755 properties covering about 189 million square feet and 383 tenants, with 98.6% occupancy, a 12.0-year weighted average lease term and contractual same-store rent growth of 2.6%.

Net debt was $8.78 billion, and the revolver balance fell to $67 million from $435 million. Liquidity was $2.6 billion, including about 7.6 million remaining forward equity shares worth about $538 million. In July the company issued $350 million of 5.200% notes due 2036 to repay 4.250% notes.

The earnings call is scheduled for Wednesday, October 28. Watch for commentary on fourth-quarter rent abatements, deal pricing and the use of forward equity.