WP Carey Q2 2021 Earnings Report
Key Takeaways
W. P. Carey Inc. announced second quarter 2021 financial results, with investment volume of $780.0 million and gross disposition proceeds of $86.0 million. The company raised and narrowed its 2021 AFFO guidance range to between $4.94 and $5.02 per diluted share. The overall collection rate was 99% for the second quarter rent due, and portfolio occupancy was 98.0%.
Investment volume of $780.0 million for the second quarter, bringing total investment volume for the first half of 2021 to $993.7 million.
Gross disposition proceeds of $86.0 million during the second quarter, bringing total dispositions for the first half of 2021 to $99.7 million.
Overall collection rate of 99% for 2021 second quarter rent due.
AFFO guidance range raised and narrowed to between $4.94 and $5.02 per diluted share, including Real Estate AFFO of between $4.82 and $4.90 per diluted share.
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WP Carey Revenue by Segment
Forward Guidance
The Company has raised and narrowed its guidance range for the 2021 full year and currently expects to report total AFFO of between $4.94 and $5.02 per diluted share, including Real Estate AFFO of between $4.82 and $4.90 per diluted share.
Positive Outlook
- Investments for the Company's Real Estate portfolio of between $1.5 billion and $2.0 billion, which has been revised higher.
- Positive impact on rent collections as businesses recover from the initial effects of the COVID-19 pandemic
- Increased expectations for full year investment volume
- Active deal pipeline
- Favorable cost of capital
Challenges Ahead
- Dispositions from the Company's Real Estate portfolio of between $150 million and $250 million, which has been revised lower.
- Total general and administrative expenses of between $82 million and $84 million, which has been revised higher.
- Effects of pandemics and global outbreaks of contagious diseases or the fear of such outbreaks (such as the current COVID-19 pandemic)
- Tenants’ continued ability to pay rent
- Impairments of assets, gains and losses from sales of assets, and depreciation and amortization from new acquisitions.