W. P. Carey (WPC) investor relations material

Executive summary

• Q3 AFFO was $308.2M, or $1.33 per diluted share, up 6.4% YoY; FY26 AFFO guidance rose to $5.23–$5.29 per share, implying 5.8% growth at the midpoint.

• Q3 revenue increased 8.6% YoY to $468.3M, while net income attributable to shareholders was flat at $141.0M.

• YTD investment activity reached $1.6B; quarter-end liquidity was $2.6B, supporting investment capacity as higher rates cloud transaction timing.

Financial highlights

• Nine-month revenue was $1.384B versus $1.272B; AFFO was $902.3M versus $817.1M.

• Nine-month net income attributable to shareholders was $502.6M versus $318.0M, and diluted EPS was $2.21 versus $1.44.

• Nine-month real estate impairment charges were $125.6M versus $30.7M; Q3 charges were $6.1M versus $19.5M.

• Q3 contractual same-store rent growth was 2.6% YoY; comprehensive same-store rent growth was 2.2%.

Outlook and guidance

• FY26 AFFO guidance increased and narrowed to $5.23–$5.29 per diluted share; investment volume guidance is $1.8B–$2.1B, with management seeing a path to the top half.

• FY26 dispositions are expected at $350M–$450M; potential tenant-credit rent loss fell to $3M–$5M, or 25 bps of ABR at midpoint.

• FY26 expense guidance: G&A $104M–$106M, property expenses $54M–$57M and AFFO-basis tax expense $40M–$43M; other lease-related income is expected in the mid-$30M range.

• One-time rent abatements expected mainly in Q4 may reduce AFFO by 2–3 cents per share; management cautioned against treating Q4 as a 2027 run rate.

• 2027 contractual same-store growth is expected slightly above the mid-2% range anticipated for 2026; nearly half of rent is CPI-linked.