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Jun 30, 2024
WP Carey Q2 2024 Earnings Report
W. P. Carey's financial performance for Q2 2024 was reported, showing a decrease in revenue and AFFO, alongside strategic dispositions and capital market activities.
Key Takeaways
W. P. Carey reported a decrease in revenue and AFFO for Q2 2024, impacted by the NLOP spin-off and office sale program. The company completed strategic dispositions and refinanced debt, revising its AFFO guidance for the year.
Net income attributable to W. P. Carey was $142.9 million, a 1.2% decrease year-over-year.
AFFO per diluted share decreased by 14.0% to $1.17.
The company completed $293.4 million in investments during the quarter, part of $641.0 million year-to-date.
Strategic plan to exit office assets effectively completed through NLOP spin-off and Office Sale Program dispositions.
WP Carey
WP Carey
WP Carey Revenue by Segment
Revenue by Segment
Lease Revenue
CapyFin.comOperating property rev Revenue
CapyFin.comOther lease income Revenue
CapyFin.comAsset management rev Revenue
CapyFin.com Forward Guidance
W. P. Carey revised its full-year 2024 AFFO guidance to between $4.63 and $4.73 per diluted share, based on anticipated investment volume of $1.25 billion to $1.75 billion and disposition volume of $1.2 billion to $1.4 billion.
Positive Outlook
- Completion of the Office Sale Program is expected to generate approximately $550 million.
- U-Haul purchase option completed in Q1 2024, generating gross proceeds of $464 million.
- Other dispositions are expected to total between $150 million and $350 million.
- Total general and administrative expenses lowered to between $98 million and $101 million.
- Liquidity remains at an all-time high, positioning the company well for future deals.
Challenges Ahead
- Lowered expectations for investment volume by $250 million.
- Lower expectations for self-storage operating portfolio NOI.
- Two larger-sized transactions recently fell out of the pipeline.
- Decrease in Lease revenues due to the company’s strategic plan to exit the office assets within its portfolio.
- Decrease in Income from finance leases and loans receivable primarily as a result of the disposition of the U-Haul portfolio during the 2024 first quarter.