W. P. Carey Stock Earnings Reports

W. P. Carey reported continued strong momentum in 3Q 2025 and raised full-year guidance. Key takeaways for investors: the company increased full-year AFFO guidance to imply mid-5% year-over-year AFFO growth and raised 2025 investment volume guidance to $1.8–$2.1 billion (year-to-date investments of $1.65 billion at a weighted average initial cap rate of ~7.6%). Investment activity has been concentrated in warehouse/industrial (≈75% of volume) with fixed rent escalations averaging ~2.7% and weighted average lease term ~18 years, translating to mid-9% average yields. Dispositions (including operating self-storage sales) are being used to fund investments; expected 2025 disposition volume was increased to $1.3–$1.5 billion with an anticipated spread of ~150 bps between investments and dispositions. Portfolio performance remains healthy: contractual same-store rent growth ~2.4% in the quarter and expected ~2.5% for the year; occupancy dipped to 97% (viewed as temporary) with specific vacancies largely in process of resolution. Rent loss assumptions were reduced (now a $10 million reserve, with visibility to ~ $7 million). Balance sheet and liquidity strong: ~ $2.1 billion liquidity (credit facility, cash, and unsettled forward equity); ~$230 million of forward equity available; weighted average interest rate ~3.2%; net debt/adjusted EBITDA ~5.8x including forwards. Management expects to sustain transaction pace into 2026, sees continued attractive spreads to cost of capital, and aims for top-tier AFFO growth in the net lease sector combined with a 5.4% annualized dividend yield (quarterly dividend increased 4% YoY to $0.91). Risks noted include ongoing monitoring of select tenants (Hellweg) and normal market competition and pricing dynamics.