Mar 31, 2022

WP Carey Q1 2022 Earnings Report

W. P. Carey reported strong first-quarter results, driven by sustained investment activity and inflation-driven rent growth. The merger with CPA:18 remains on track, expected to close in the third quarter.

Key Takeaways

W. P. Carey Inc. announced its financial results for the first quarter ended March 31, 2022, reporting a net income attributable to W. P. Carey of $157.0 million and AFFO per diluted share of $1.35. The company completed investments totaling $307.7 million during the quarter and is maintaining its full-year AFFO guidance.

AFFO for the 2022 first quarter was $1.35 per diluted share, up 10.7% from $1.22 per diluted share for the 2021 first quarter.

Investment volume of $415.4 million completed year to date, including $307.7 million during the first quarter and $107.7 million subsequent to quarter end.

Overall collection rate of over 99.7% for first quarter rent due.

Portfolio occupancy of 98.5% with a weighted-average lease term of 10.8 years.

Total Revenue
$344M
Previous year: $306M
+12.4%
EPS
$1.35
Previous year: $1.22
+10.7%
Net Lease Properties
1.34K
Previous year: 1.26K
+5.9%
Square Footage
157M
Previous year: 146M
+7.5%
Net Lease Occupancy
98.5%
Previous year: 98.3%
+0.2%

WP Carey

WP Carey

WP Carey Revenue by Segment

Forward Guidance

W. P. Carey is maintaining its expectation that it will report total AFFO of between $5.18 and $5.30 per diluted share, including Real Estate AFFO of between $5.03 and $5.15 per diluted share.

Positive Outlook

  • Investments for the Company's Real Estate portfolio of between $1.5 billion and $2.0 billion, which is unchanged
  • Dispositions from the Company's Real Estate portfolio of between $250 million and $350 million, which is unchanged
  • Total general and administrative expenses of between $86 million and $89 million, which is unchanged
  • Excludes the impact of the Company’s proposed merger with CPA:18
  • Company expects the proposed merger to close in early August 2022

Challenges Ahead

  • The Company does not provide guidance on net income.
  • The Company only provides guidance on total AFFO (and Real Estate 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.
  • The proposed merger and related transactions are subject to the satisfaction of a number of closing conditions set forth in the merger agreement, including approval by the stockholders of CPA:18.
  • There can be no assurance that the merger will be completed at such time or at all.