W. P. Carey Reports Mixed Financial Results for Second Quarter 2024

W. P. Carey Inc., a prominent real estate investment trust, has released its financial results for the second quarter ending June 30, 2024. The company’s performance reflects a complex landscape of strategic decisions and market challenges, with both positive and negative outcomes apparent in the report.

The company’s revenues, including reimbursable costs, totaled $389.7 million, marking a 13.9% decrease from the same period in 2023. This decline in revenue can be primarily attributed to W. P. Carey’s strategic exit from office assets and the disposition of the U-Haul portfolio. Consequently, lease revenues experienced a notable decrease, impacting the overall financial picture.

Net income attributable to W. P. Carey saw a slight decline of 1.2% compared to the previous year, landing at $142.9 million. In a more significant shift, the company’s Adjusted Funds from Operations (AFFO) for the second quarter of 2024 dropped to $1.17 per diluted share, representing a 14.0% decrease from the same quarter in 2023. These figures have prompted the company to lower its guidance range for the full year 2024 by two cents per diluted share.

Investment Activities and Portfolio Management

Despite the challenges, W. P. Carey has maintained an active investment strategy. The company completed $641.0 million in real estate portfolio investments year-to-date, with $293.4 million during the second quarter alone and an additional $67.3 million subsequent to the quarter’s end. This ongoing investment activity demonstrates the company’s commitment to growth and portfolio optimization.

In line with its strategic realignment, W. P. Carey continued its disposition efforts. The second quarter saw gross disposition proceeds of $152.2 million, comprising $62.3 million from the Office Sale Program and $89.9 million from non-office dispositions. These moves align with the company’s efforts to refine its portfolio and focus on more profitable asset classes.

Financial Management and Shareholder Returns

W. P. Carey’s financial management efforts were evident in its debt-related activities. The company issued €650 million of 4.25% Senior Unsecured Notes due 2032 and $400 million of 5.375% Senior Unsecured Notes due 2034. Simultaneously, it repaid $500 million of 4.6% Senior Unsecured Notes due April 2024 and €500 million of 2.25% Senior Unsecured Notes due July 2024, demonstrating a proactive approach to debt management.

Despite the challenges reflected in the financial results, W. P. Carey maintained its commitment to shareholder returns. The company declared a quarterly cash dividend of $0.870 per share, equivalent to an annualized dividend rate of $3.48 per share. This decision underscores the company’s dedication to providing consistent returns to its investors, even in the face of a challenging operating environment.