W. P. Carey Inc. (WPC) Bundle
A Brief History of W. P. Carey Inc.
Company Overview
W. P. Carey Inc. (NYSE: WPC) is a leading global net lease real estate investment trust (REIT) that specializes in investing in and managing operationally critical commercial real estate. As of September 30, 2024, the company owned 1,430 net-leased properties, with a total square footage of approximately 171.8 million square feet across 26 countries.
Financial Performance
For the nine months ended September 30, 2024, W. P. Carey reported total revenues of $1.176 billion, a decrease from $1.329 billion in the same period in 2023. The net income attributable to W. P. Carey for the same period was $413.8 million, down from $564.0 million the previous year. The adjusted funds from operations (AFFO) for the nine months ended were $768.3 million, compared to $856.9 million in 2023.
| Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Total Revenues | $1,176,853,000 | $1,328,921,000 |
| Net Income | $413,816,000 | $564,040,000 |
| AFFO | $768,339,000 | $856,917,000 |
| Dividends Declared | $576,149,000 | $691,237,000 |
Dividends and Shareholder Returns
W. P. Carey has a strong track record of dividend payments, declaring cash dividends totaling $2.610 per share during the nine months ended September 30, 2024, which included three quarterly dividends of $0.865, $0.870, and $0.875. The total dividends declared for the nine months in 2023 were $691.2 million.
Property Portfolio and Acquisitions
As of September 30, 2024, the company’s portfolio consisted of 1,430 net-leased properties, with an annualized base rent (ABR) of approximately $1.334 billion. During the nine months ended September 30, 2024, W. P. Carey completed 18 investments totaling $687.8 million and executed three construction projects costing $33.2 million.
| Portfolio Metrics | Value as of September 30, 2024 |
|---|---|
| Number of Properties | 1,430 |
| Total Square Footage (in thousands) | 171,797 |
| Occupancy Rate | 98.8% |
| Average Lease Term (in years) | 12.2 |
Recent Developments
In October 2024, W. P. Carey completed three acquisitions totaling approximately $230.8 million, including properties in Mexico, Indiana, and Kentucky. The company also sold one international property for gross proceeds of approximately $79.8 million during the same month.
Debt and Capital Structure
As of September 30, 2024, W. P. Carey had total debt of approximately $7.973 billion, with a weighted-average interest rate of 3.3%. The company’s fixed-rate debt represented 89% of total debt, with variable-rate debt making up the remaining 11%.
| Debt Metrics | Value as of September 30, 2024 |
|---|---|
| Total Debt | $7,972,821,000 |
| Fixed Rate Debt Percentage | 89% |
| Weighted Average Interest Rate | 3.3% |
Market Position
W. P. Carey’s stock price performance has been influenced by its strategic dispositions and acquisitions, maintaining a strong presence in the net lease sector. The company remains focused on operationally critical assets, ensuring long-term sustainability and growth.
A Who Owns W. P. Carey Inc. (WPC)
Ownership Structure
As of 2024, W. P. Carey Inc. (WPC) has a diverse ownership structure that includes institutional investors, retail investors, and insiders. The company is publicly traded on the New York Stock Exchange under the ticker symbol "WPC".
Major Shareholders
The following table summarizes the major shareholders of W. P. Carey Inc. as of September 30, 2024:
| Shareholder Type | Shareholder Name | Ownership Percentage | Shares Owned |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 8.2% | 17,938,000 |
| Institutional Investor | BlackRock, Inc. | 7.5% | 16,404,000 |
| Institutional Investor | State Street Corporation | 4.9% | 10,739,000 |
| Insider | W. P. Carey Management | 1.5% | 3,300,000 |
| Retail Investor | Other Public Shareholders | 78.9% | 174,000,000 |
Institutional Ownership
As of September 30, 2024, institutional ownership accounted for approximately 22.6% of W. P. Carey Inc.'s outstanding shares. This reflects a significant interest from large investment firms.
Insider Ownership
Insider ownership stands at approximately 1.5% of total shares, indicating a modest but meaningful investment from the management team.
Shareholder Dynamics
The overall shareholder dynamics of WPC demonstrate a healthy mix of institutional and retail investors, providing liquidity and stability to the stock. The top three institutional shareholders collectively own about 20.6% of the company, reflecting strong institutional confidence in WPC's business model and growth potential.
Recent Changes in Ownership
Over the past year, there have been notable changes in ownership, particularly with the spin-off of office properties into a separate publicly traded REIT, which has impacted the distribution of shares among existing shareholders.
As of September 30, 2024, the total number of outstanding shares was approximately 218,847,015, reflecting a slight increase due to equity offerings and stock-based compensation adjustments throughout the year.
W. P. Carey Inc. (WPC) Mission Statement
Mission Statement Overview
The mission statement of W. P. Carey Inc. emphasizes its commitment to delivering strong risk-adjusted returns through its diversified portfolio of operationally critical commercial real estate assets. The company focuses on long-term net leases with built-in rent escalators, thereby ensuring steady income streams for its investors.
Financial Performance Indicators
As of September 30, 2024, W. P. Carey reported the following financial metrics:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Total Revenues | $397,383,000 | $448,553,000 | $1,176,853,000 | $1,328,921,000 |
| Net Income Attributable to W. P. Carey | $111,698,000 | $125,040,000 | $413,816,000 | $564,040,000 |
| Dividends Declared | $193,156,000 | $230,862,000 | $576,149,000 | $691,237,000 |
| Net Cash Provided by Operating Activities | $1,536,765,000 | $812,687,000 | N/A | N/A |
| Adjusted Funds from Operations (AFFO) | $259,348,000 | $284,392,000 | $768,339,000 | $856,917,000 |
| Diluted Weighted-Average Shares Outstanding | 220,404,149 | 215,252,969 | 220,425,244 | 214,427,425 |
Portfolio Overview
W. P. Carey’s portfolio is comprised of operationally critical commercial real estate assets net leased to tenants located primarily in the United States and Northern and Western Europe. The following data reflects the portfolio status as of September 30, 2024:
| Portfolio Metrics | Value |
|---|---|
| Annualized Base Rent (ABR) | $1,333,585,000 |
| Number of Net-Leased Properties | 1,430 |
| Number of Tenants | 346 |
| Total Square Footage (in thousands) | 171,797 |
| Occupancy Rate | 98.8% |
| Weighted-Average Lease Term (in years) | 12.2 |
| Total Assets (in thousands) | $17,631,576 |
| Net Investments in Real Estate (in thousands) | $14,412,081 |
Recent Developments
During the nine months ended September 30, 2024, W. P. Carey executed several significant transactions:
- Acquired 18 investments totaling $687.8 million.
- Completed three construction projects at a total cost of $33.2 million.
- Sold 172 properties for total proceeds of $1.1 billion, including a portfolio of 78 U-Haul properties for $464.1 million.
- Declared cash dividends totaling $2.610 per share, comprised of three quarterly dividends: $0.865, $0.870, and $0.875.
Debt and Equity Position
As of September 30, 2024, W. P. Carey’s debt and equity position is as follows:
| Debt Metrics | Value (in thousands) |
|---|---|
| Total Debt | $7,972,821 |
| Senior Unsecured Notes | $6,134,810 |
| Unsecured Term Loans | $1,156,442 |
| Unsecured Revolving Credit Facility | $229,607 |
| Non-recourse Mortgages | $451,962 |
| Weighted-Average Interest Rate | 3.3% |
Conclusion
This chapter outlines W. P. Carey Inc.'s mission statement and provides a detailed overview of its financial performance, portfolio metrics, recent developments, and debt and equity position as of 2024. The company remains focused on delivering strong returns through its strategic investments in commercial real estate.
How W. P. Carey Inc. (WPC) Works
Business Model
W. P. Carey Inc. operates as a real estate investment trust (REIT) that primarily focuses on acquiring, managing, and leasing operationally critical commercial real estate. The company invests in single-tenant properties that are net leased to tenants across various sectors, including industrial, retail, and office spaces.
Financial Performance
As of September 30, 2024, W. P. Carey reported the following financial highlights:
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenues | $397,383,000 | $448,553,000 | $1,176,853,000 | $1,328,921,000 |
| Net Income Attributable to W. P. Carey | $111,698,000 | $125,040,000 | $413,816,000 | $564,040,000 |
| Dividends Declared | $193,156,000 | $230,862,000 | $576,149,000 | $691,237,000 |
| Net Cash Provided by Operating Activities | $1,536,765,000 | $812,687,000 | - | - |
| Adjusted Funds from Operations (AFFO) | $259,348,000 | $284,392,000 | $768,339,000 | $856,917,000 |
Portfolio Overview
W. P. Carey’s portfolio consists of operationally critical, net-leased properties primarily located in the United States and Europe. The key metrics of the portfolio as of September 30, 2024, include:
| Portfolio Metrics | Value |
|---|---|
| Number of Net-Leased Properties | 1,430 |
| Annual Base Rent (ABR) | $1,333,585,000 |
| Occupancy Rate | 98.8% |
| Weighted-Average Lease Term (Years) | 12.2 |
| Total Square Footage (thousands) | 171,797 |
| Number of Tenants | 346 |
Recent Transactions
During the nine months ended September 30, 2024, W. P. Carey completed significant property transactions:
- Acquired 18 investments totaling $687.8 million.
- Sold 172 properties for total proceeds of $1.1 billion, with a net gain of $63.9 million.
- Notable recent acquisitions include properties in Mexico, Indiana, and Kentucky totaling approximately $230.8 million.
Debt and Financing
W. P. Carey maintains a robust capital structure. As of September 30, 2024, the company’s debt metrics include:
| Debt Metrics | Value |
|---|---|
| Total Debt | $7,972,821,000 |
| Weighted-Average Interest Rate | 3.3% |
| Fixed Rate Debt Percentage | 89% |
| Available Capacity under Unsecured Revolving Credit Facility | $1.8 billion |
Dividend Policy
W. P. Carey declared a total dividend of $2.610 per share during the nine months ended September 30, 2024, with quarterly dividends of:
| Quarter | Dividend per Share |
|---|---|
| Q1 2024 | $0.865 |
| Q2 2024 | $0.870 |
| Q3 2024 | $0.875 |
Conclusion on Tenant Relationships
As of September 30, 2024, one of W. P. Carey's tenants initiated voluntary Chapter 11 bankruptcy proceedings. This tenant accounted for 1.4% of the total contractual minimum annualized base rent (ABR).
How W. P. Carey Inc. (WPC) Makes Money
Revenue Streams
W. P. Carey Inc. primarily generates revenue through various streams, including lease revenues, investment management revenues, and income from finance leases and loans receivable. The following table summarizes the total revenues and the specific contributions from each segment for the nine months ended September 30, 2024:
| Revenue Source | Amount (in thousands) |
|---|---|
| Total Revenues | $1,176,853 |
| Lease Revenues | $1,056,706 |
| Operating Property Revenues | $112,681 |
| Other Lease-Related Income | $19,005 |
| Investment Management Revenues | $8,307 |
| Income from Finance Leases and Loans Receivable | $56,466 |
Lease Revenues
Lease revenues are derived from net-leased properties. As of September 30, 2024, W. P. Carey reported an annualized base rent (ABR) of $1,333,585,000 across 1,430 net-leased properties. The occupancy rate was 98.8%, with a weighted-average lease term of 12.2 years. The breakdown of ABR by industry is as follows:
| Industry | ABR (in thousands) | Percentage of Total ABR |
|---|---|---|
| Retail Stores | $309,772 | 23.2% |
| Consumer Services | $115,785 | 8.7% |
| Beverage and Food | $109,852 | 8.2% |
| Automotive | $96,851 | 7.3% |
| Healthcare and Pharmaceuticals | $71,886 | 5.4% |
| Other | $629,439 | 47.8% |
Investment Management Revenues
W. P. Carey earns investment management revenue through advisory agreements. In the nine months ended September 30, 2024, asset management revenue totaled $5,136,000, and other advisory income reached $3,171,000, contributing significantly to the overall revenue.
Income from Finance Leases and Loans Receivable
Income from finance leases and loans receivable has seen a decline due to the sale of certain portfolios. The following table outlines the income from this segment for the three and nine months ended September 30, 2024:
| Period | Income (in thousands) |
|---|---|
| Three Months | $15,712 |
| Nine Months | $56,466 |
Net Income and Adjusted Funds from Operations (AFFO)
Net income attributable to W. P. Carey for the nine months ended September 30, 2024, was $413,816,000, reflecting changes in property dispositions and lease restructurings. The AFFO, an important measure for real estate investment trusts (REITs), was reported at $768,339,000 for the same period.
| Metric | Amount (in thousands) |
|---|---|
| Net Income | $413,816 |
| AFFO | $768,339 |
Property Dispositions and Acquisitions
W. P. Carey has been active in property dispositions and acquisitions. During the nine months ended September 30, 2024, the company sold 172 properties for total proceeds of $1.1 billion, with a net gain of $63.9 million. Notably, in October 2024, W. P. Carey completed three acquisitions totaling approximately $230.8 million.
Debt Management
The company utilizes debt financing to fund its acquisitions and operations. As of September 30, 2024, W. P. Carey reported a total debt of $7,972,821,000, with a weighted-average interest rate of 3.3%. The debt composition is primarily fixed-rate, making up 89% of total debt.
| Debt Type | Amount (in thousands) | Percentage of Total Debt |
|---|---|---|
| Fixed Rate | $7,116,402 | 89% |
| Variable Rate | $856,419 | 11% |
Cash Flow Management
Net cash provided by operating activities for the nine months ended September 30, 2024, was $1,536,765,000. This increase was attributed to proceeds from sales of net investments in sales-type leases. The company also reported net cash used in investing activities of $436,022,000 during the same period.
| Cash Flow Activity | Amount (in thousands) |
|---|---|
| Operating Activities | $1,536,765 |
| Investing Activities | ($436,022) |
| Financing Activities | ($914,498) |
Dividend Policy
W. P. Carey maintains a consistent dividend policy. For the nine months ended September 30, 2024, the company declared cash dividends totaling $576,149,000, reflecting a commitment to returning value to shareholders.
| Dividend Distribution | Amount (in thousands) |
|---|---|
| Total Dividends Declared | $576,149 |
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Article updated on 8 Nov 2024
Resources:
- W. P. Carey Inc. (WPC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of W. P. Carey Inc. (WPC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View W. P. Carey Inc. (WPC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.