WP Carey Q4 2020 Earnings Report
Key Takeaways
W. P. Carey Inc. announced fourth quarter and full year 2020 financial results, with a net income attributable to W. P. Carey of $134.6 million, or $0.76 per diluted share, and AFFO of $1.20 per diluted share. The company's real estate portfolio maintained a 98.5% occupancy rate and a 99% rent collection rate for the fourth quarter.
Overall collection rate of 99% for 2020 fourth quarter rent due and 98% for January 2021 rent due.
Investment volume of $310.0 million during the fourth quarter, bringing total investment volume for 2020 to $825.9 million.
Gross disposition proceeds of $201.5 million during the fourth quarter, bringing total dispositions for 2020 to $381.2 million.
Portfolio occupancy of 98.5%.
WP Carey
WP Carey
WP Carey Revenue by Segment
Forward Guidance
For the 2021 full year, the Company expects to report total AFFO of between $4.79 and $4.93 per diluted share, including Real Estate AFFO of between $4.66 and $4.80 per diluted share, based on the following key assumptions: (i) investments for the Company's Real Estate portfolio of between $1.0 billion and $1.5 billion; (ii) dispositions from the Company's Real Estate portfolio of between $250 million and $350 million; and (iii) total general and administrative expenses of between $79 million and $83 million.
Positive Outlook
- Expected total AFFO of between $4.79 and $4.93 per diluted share.
- Real Estate AFFO of between $4.66 and $4.80 per diluted share.
- Investments for the Company's Real Estate portfolio of between $1.0 billion and $1.5 billion.
- Active capital investment projects of $189.7 million outstanding at year end, including $102.1 million scheduled to be completed in the remainder of 2021
- Issued $500 million of 2.400% Senior Unsecured Notes due 2031
Challenges Ahead
- Total general and administrative expenses of between $79 million and $83 million.
- Lower operating revenues reflected the disposition of a hotel operating property during the 2020 first quarter and lower occupancy at the Company’s remaining hotel operating property due to the COVID-19 pandemic.
- Lower asset management revenues and reimbursable costs resulting from the management internalization by Carey Watermark Investors Incorporated (CWI 1) and Carey Watermark Investors 2 Incorporated (CWI 2) completed during the 2020 second quarter.
- AFFO for the 2020 fourth quarter was $1.20 per diluted share, down 6.3% from $1.28 per diluted share for the 2019 fourth quarter.
- The Investment Management segment generated AFFO of $0.04 per diluted share, reflecting the Company’s continued move out of this business, primarily through the management internalization completed by CWI 1 and CWI 2 during the 2020 second quarter.