Dec 31, 2019

WP Carey Q4 2019 Earnings Report

W. P. Carey reported mixed results for Q4 2019, with a decrease in net income but growth in real estate revenue, and provided AFFO guidance for 2020.

Key Takeaways

W. P. Carey Inc. reported a decrease in net income attributable to W. P. Carey for the fourth quarter of 2019, from $193.3 million to $129.4 million. However, real estate revenues increased by 19.4%. The company announced a full year AFFO guidance range for 2020 of $4.86 to $5.01 per diluted share.

Net income attributable to W. P. Carey was $129.4 million, or $0.75 per diluted share.

AFFO was $222.0 million, or $1.28 per diluted share.

Quarterly cash dividend raised to $1.038 per share, equivalent to an annualized dividend rate of $4.152 per share.

Investment volume of $411.7 million during the fourth quarter.

Total Revenue
$296M
Previous year: $248M
+19.4%
EPS
$1.28
Previous year: $1.33
-3.8%
Net Leased Properties
1.21K
Tenants
345
Square Footage
140M

WP Carey

WP Carey

WP Carey Revenue by Segment

Forward Guidance

For the 2020 full year, the Company expects to report total AFFO of between $4.86 and $5.01 per diluted share, including Real Estate AFFO of between $4.74 and $4.89 per diluted share.

Positive Outlook

  • Investments for the Company’s Real Estate portfolio of between $750 million and $1.25 billion
  • Ample liquidity
  • Low leverage
  • Established access to various forms of capital
  • Healthy number of capital projects scheduled for completion this year

Challenges Ahead

  • The company does not provide guidance on net income
  • Inherent difficulty in quantifying certain items necessary to provide reconciliation to net income
  • Unknown effect on impairments of assets
  • Unknown timing and potential significance
  • Impact of gains and losses from sales of assets and depreciation and amortization from new acquisitions