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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.
Revenue by Segment
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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