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1. Company Snapshot

1.a. Company Description

W.P.Carey ranks among the largest net lease REITs with an enterprise value of approximately $18 billion and a diversified portfolio of operationally-critical commercial real estate that includes 1,215 net lease properties covering approximately 142 million square feet as of September 30, 2020.


For nearly five decades, the company has invested in high-quality single-tenant industrial, warehouse, office, retail and self-storage properties subject to long-term net leases with built-in rent escalators.Its portfolio is located primarily in the U.S. and Northern and Western Europe and is well-diversified by tenant, property type, geographic location and tenant industry.

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1.b. Last Insights on WPC

W. P. Carey's recent performance is driven by several positive factors. The company's upcoming Q2 earnings report is expected to show higher revenues and FFO, with long-term leases and portfolio shifts offsetting tenant bankruptcies. Additionally, WPC has stabilized after a tumultuous period, transforming its portfolio and right-sizing its dividend following challenges from rising rates and tenant bankruptcies. The company now boasts a stronger portfolio focused on industrial assets, improved balance sheet metrics, and resumed modest dividend growth. Furthermore, WPC has successfully transitioned away from office properties, reporting solid AFFO and revenue growth, and a modest 1.1% dividend increase. The company's diversified portfolio and strong North American and European presence support a healthy 6% dividend, well-covered by adjusted FFO. Portfolio tilt towards stable, high-revenue tenants and new acquisitions create FFO upside and upside revaluation potential.

1.c. Company Highlights

2. W. P. Carey Inc.'s Q3 2025 Earnings: A Strong Performance

W. P. Carey Inc.'s (WPC) third-quarter 2025 AFFO per share was $1.25, beating analyst estimates of $1.23. The company's AFFO per share increased by 5.9% compared to the third quarter of last year, driven largely by higher investment volume and lower expected rent loss within the portfolio. The revenue growth is expected to continue, with analysts estimating a 2.9% revenue growth for next year.

Publication Date: Nov -03

📋 Highlights
  • AFFO Growth & Guidance: Q3 2025 AFFO rose 5.9% to $1.25/share; full-year guidance raised to $4.93–$4.99/share (5.5% Y/Y growth at midpoint).
  • Investment Momentum: Year-to-date investments reached $1.65B at 7.6% avg. cap rates; 2025 guidance raised to $1.8B–$2.1B.
  • Rent Growth & Occupancy: Same-store rent grew 2.4% Y/Y (2.5% CPI-linked, 2.1% fixed); portfolio occupancy fell to 97%.
  • Liquidity & Debt Strategy: $2.0B liquidity; weighted average interest rate 3.2%; expects U.S. debt pricing in low 5s, Europe in 3.5–4%.
  • Industrial Focus & Risk Mitigation: 70%+ activity in industrial (manufacturing/warehouses); Hellweg exposure reduction on track, with 9 stores taken back/signed in Q3.

Investment Performance

The company completed $1.65 billion of investments year-to-date at attractive initial cap rates averaging 7.6%, with fixed rent escalations averaging 2.7%. WPC raised its full-year expectations for investment volume to between $1.8 billion and $2.1 billion. The near-term pipeline remains strong, with several hundred million dollars of transactions currently in process, and the company expects many of those deals to close in the fourth quarter.

Portfolio Performance

Contractual same-store rent growth for the quarter was 2.4% year-over-year, comprised of CPI-linked rent escalations averaging 2.5%, while fixed rent increases averaged 2.1%. Portfolio occupancy declined to 97% at the end of the third quarter. The company views its portfolio as being well-positioned for continued growth, with a strong presence in industrial and warehouse spaces.

Balance Sheet and Liquidity

WPC's balance sheet remains strong, with over $2 billion of liquidity. The company recently issued $230 million of forward equity and has a weighted average interest rate of 3.2%. The company's hedging strategy focuses on reducing exposure to currency fluctuations, particularly with European cash flows.

Valuation

Using the current P/E Ratio of 39.88 and Dividend Yield of 5.42%, it appears that the market is pricing in a certain level of growth for WPC. With a ROE of 4.4% and a Net Debt / EBITDA of 6.63, the company's leverage is relatively high. However, the company's ROIC of 22.91% suggests that it is generating strong returns on its investments.

Outlook

The company expects to continue generating double-digit total shareholder returns in 2026 through a combination of AFFO growth and its dividend yield. WPC does not currently anticipate a significant disposition program for 2026, but rather a return to a more normalized run rate. The company's guidance for next year is supported by its strong pipeline and its ability to generate attractive returns on its investments.

3. NewsRoom

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3 High-Yield Dividend Stocks I'm Buying to Boost My Passive Income in December

Dec -01

Source: fool.com

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W.P. Carey: The Quiet REIT Comeback? Strong Q3 And Momentum Could Set The Stage For 2026

Nov -29

Source: seekingalpha.com

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The Biggest Problem In Today's Market, And The Dividends That Fix It

Nov -26

Source: seekingalpha.com

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My Biggest Net Lease REIT Investment: W. P. Carey

Nov -25

Source: seekingalpha.com

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Top Stocks With Solid Shareholder Yield to Safeguard Your Portfolio

Nov -17

Source: zacks.com

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AE Wealth Management LLC Has $646,000 Stake in W.P. Carey Inc. $WPC

Nov -14

Source: defenseworld.net

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Why W.P. Carey Deserves a Spot in Your Portfolio Right Now

Nov -13

Source: zacks.com

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Here's My Top Dividend Stock for 2026

Nov -10

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.50%)

6. Segments

Real Estate

Expected Growth: 2.5%

W. P. Carey Inc.'s 2.5% growth in Real Estate is driven by increasing demand for industrial and logistics properties, e-commerce growth, and a strong US economy. Additionally, the company's diversified portfolio, long-term leases, and investment-grade tenants contribute to stable cash flows and growth.

Investment Management

Expected Growth: 3.5%

W. P. Carey Inc.'s 3.5% growth in Investment Management is driven by increasing demand for diversified real estate investment portfolios, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on industrial and logistics properties, which are less susceptible to economic downturns, contributes to its steady growth.

7. Detailed Products

Industrial Properties

W. P. Carey Inc. owns and manages a diverse portfolio of industrial properties, including warehouses, distribution centers, and manufacturing facilities.

Office Properties

The company's office properties portfolio includes Class A office buildings, business parks, and suburban office parks.

Retail Properties

W. P. Carey Inc. owns and manages a portfolio of retail properties, including shopping centers, strip centers, and single-tenant retail properties.

Self-Storage Facilities

The company's self-storage facilities provide secure and convenient storage solutions for individuals and businesses.

Triple-Net Leases

W. P. Carey Inc. offers triple-net leases, which provide long-term, stable income streams to investors.

8. W. P. Carey Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

W. P. Carey Inc. operates in the real estate investment trust (REIT) industry, which has a moderate threat of substitutes. While there are alternative investment options available, such as stocks and bonds, REITs offer a unique combination of income and diversification benefits that are difficult to replicate.

Bargaining Power Of Customers

W. P. Carey Inc.'s customers, primarily tenants, have limited bargaining power due to the company's diversified portfolio and long-term lease agreements. This reduces the risk of tenants negotiating for better terms or switching to alternative properties.

Bargaining Power Of Suppliers

W. P. Carey Inc. relies on a network of suppliers, including contractors, architects, and engineers, to maintain and develop its properties. While suppliers have some bargaining power, the company's scale and diversified portfolio mitigate this risk.

Threat Of New Entrants

The REIT industry has significant barriers to entry, including high capital requirements and regulatory hurdles. This limits the threat of new entrants and allows W. P. Carey Inc. to maintain its market position.

Intensity Of Rivalry

The REIT industry is highly competitive, with many established players competing for tenants, properties, and investors. W. P. Carey Inc. must continually adapt and innovate to maintain its market share and competitive edge.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 51.61%
Debt Cost 3.95%
Equity Weight 48.39%
Equity Cost 8.26%
WACC 6.03%
Leverage 106.64%

11. Quality Control: W. P. Carey Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Rithm Capital

A-Score: 6.8/10

Value: 6.6

Growth: 2.3

Quality: 6.0

Yield: 10.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
W. P. Carey

A-Score: 6.7/10

Value: 3.4

Growth: 4.3

Quality: 6.3

Yield: 9.0

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Broadstone Net Lease

A-Score: 6.6/10

Value: 3.8

Growth: 3.8

Quality: 6.8

Yield: 10.0

Momentum: 5.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Essential Properties Realty Trust

A-Score: 6.4/10

Value: 2.9

Growth: 6.8

Quality: 6.8

Yield: 8.0

Momentum: 4.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Innovative Industrial Properties

A-Score: 6.1/10

Value: 6.6

Growth: 6.3

Quality: 8.4

Yield: 10.0

Momentum: 0.5

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
DigitalBridge

A-Score: 3.5/10

Value: 4.3

Growth: 3.2

Quality: 7.7

Yield: 0.0

Momentum: 2.5

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

66.31$

Current Price

66.31$

Potential

-0.00%

Expected Cash-Flows