W. P. Carey Announces Third Quarter 2025 Financial Results
NEW YORK, Oct. 28, 2025 /PRNewswire/ -- W. P. Carey Inc. (NYSE: WPC) (W. P. Carey or the Company), a net lease real estate investment trust, today reported its financial results for the third quarter ended September 30, 2025.
Financial Highlights
2025 Third Quarter
Net income attributable to W. P. Carey (millions)
$141.0
Diluted earnings per share
$0.64
AFFO (millions)
$276.6
AFFO per diluted share
$1.25
Real Estate Portfolio
Balance Sheet and Capitalization
MANAGEMENT COMMENTARY
"Strong investment activity, an active deal pipeline, and lower anticipated rent loss have enabled us to further raise our full-year outlook for both investment volume and AFFO — continuing the momentum we built in the first half of the year," said Jason Fox, Chief Executive Officer. "We've also made excellent progress executing our strategy of funding investments through asset sales this year, achieving better-than-expected disposition cap rates and favorable reinvestment spreads. And our recent forward equity sales provide additional flexibility for funding deals.
"Looking ahead, our portfolio performance, sector-leading rent growth, strong near-term pipeline and access to well-priced capital, all support our ability to continue delivering attractive AFFO growth in 2026."
QUARTERLY FINANCIAL RESULTS
Revenues
Net Income Attributable to W. P. Carey
Adjusted Funds from Operations (AFFO)
Note: Further information concerning AFFO, which is a non-GAAP supplemental performance metric, is presented in the accompanying tables and related notes.
Dividend
AFFO GUIDANCE
(i) investment volume of between $1.8 billion and $2.1 billion, which is revised higher;
(ii) disposition volume of between $1.3 billion and $1.5 billion, which is revised higher;
(iii) total general and administrative expenses of between $99 million and $102 million, which is unchanged;
(iv) property expenses, excluding reimbursable tenant costs, of between $51 million and $54 million, which is revised higher at the bottom end of the range; and
(v) tax expense (on an AFFO basis) of between $41 million and $44 million, which is revised lower.
Note: The Company does not provide guidance on net income. The Company only provides guidance on AFFO and does not provide a reconciliation of this forward-looking non-GAAP guidance to net income due to the inherent difficulty in quantifying certain items necessary to provide such reconciliation as a result of their unknown effect, timing and potential significance. Examples of such items include impairments of assets, gains and losses from sales of assets, and depreciation and amortization from new acquisitions.
REAL ESTATE
Investments
Dispositions
Contractual Same-Store Rent Growth
Composition
BALANCE SHEET AND CAPITALIZATION
Liquidity
Forward Equity and "At-The-Market" (ATM) Program
Senior Unsecured Notes
* * *
Supplemental Information
The Company has provided supplemental unaudited financial and operating information regarding the 2025 third quarter and certain prior quarters, including a description of non-GAAP financial measures and reconciliations to GAAP measures, in a Current Report on Form 8-K filed with the Securities and Exchange Commission (SEC) on October 28, 2025, and made available on the Company's website at ir.wpcarey.com/investor-relations.
* * *
Live Conference Call and Audio Webcast Scheduled for Wednesday, October 29, 2025 at 11:00 a.m. Eastern Time
Please dial in at least 10 minutes prior to the start time.
Date/Time: Wednesday, October 29, 2025 at 11:00 a.m. Eastern Time
Call-in Number: 1 (877) 465-1289 (U.S.) or +1 (201) 689-8762 (international)
Live Audio Webcast and Replay: www.wpcarey.com/earnings
* * *
W. P. Carey Inc.
W. P. Carey ranks among the largest net lease REITs with a well-diversified portfolio of high-quality, operationally critical commercial real estate, which includes 1,662 net lease properties covering approximately 183 million square feet as of September 30, 2025. With offices in New York, London, Amsterdam and Dallas, the company remains focused on investing primarily in single-tenant, industrial, warehouse and retail properties located in the U.S. and Europe, under long-term net leases with built-in rent escalations.
www.wpcarey.com
* * *
Cautionary Statement Concerning Forward-Looking Statements
Certain of the matters discussed in this communication constitute forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, both as amended by the Private Securities Litigation Reform Act of 1995. The forward-looking statements include, among other things, statements regarding the intent, belief or expectations of W. P. Carey and can be identified by the use of words such as "may," "will," "should," "would," "will be," "goals," "believe," "project," "expect," "anticipate," "intend," "estimate" "opportunities," "possibility," "strategy," "maintain" or the negative version of these words and other comparable terms. These forward-looking statements include, but are not limited to, statements made by Mr. Jason Fox regarding portfolio performance, rent growth, investment pipeline, access to capital and expectations for future AFFO growth. These statements are based on the current expectations of our management, and it is important to note that our actual results could be materially different from those projected in such forward-looking statements. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Other unknown or unpredictable risks or uncertainties, like the risks related to fluctuating interest rates, the impact of inflation and tariffs on our tenants and us, the effects of pandemics and global outbreaks of contagious diseases, and domestic or geopolitical crises, such as terrorism, military conflict, war or the perception that hostilities may be imminent, political instability or civil unrest, or other conflict, and those additional risk factors discussed in reports that we have filed with the SEC, could also have material adverse effects on our future results, performance or achievements. Discussions of some of these other important factors and assumptions are contained in W. P. Carey's filings with the SEC and are available at the SEC's website at http:// www.sec.gov, including Part I, Item 1A. Risk Factors in W. P. Carey's Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this communication, unless noted otherwise. Except as required under the federal securities laws and the rules and regulations of the SEC, W. P. Carey does not undertake any obligation to release publicly any revisions to the forward-looking statements to reflect events or circumstances after the date of this communication or to reflect the occurrence of unanticipated events.
Institutional Investors:
Peter Sands
1 (212) 492-1110
institutionalir@wpcarey.com
Individual Investors:
W. P. Carey Inc.
1 (212) 492-8920
ir@wpcarey.com
Press Contact:
Anna McGrath
1 (212) 492-1166
amcgrath@wpcarey.com
* * * * *
W. P. CAREY INC.
Consolidated Balance Sheets (Unaudited)
(in thousands, except share and per share amounts)
September 30, 2025
December 31, 2024
Assets
Investments in real estate:
Land, buildings and improvements — net lease and other
$ 14,056,399
$ 12,842,869
Land, buildings and improvements — operating properties
626,368
1,198,676
Net investments in finance leases and loans receivable
1,149,856
798,259
In-place lease intangible assets and other
2,405,227
2,297,572
Above-market rent intangible assets
671,501
665,495
Investments in real estate
18,909,351
17,802,871
Accumulated depreciation and amortization (a)
(3,508,787)
(3,222,396)
Assets held for sale, net
8,062
—
Net investments in real estate
15,408,626
14,580,475
Equity method investments
311,173
301,115
Cash and cash equivalents
249,029
640,373
Other assets, net
1,029,245
1,045,218
Goodwill
986,967
967,843
Total assets
$ 17,985,040
$ 17,535,024
Liabilities and Equity
Debt:
Senior unsecured notes, net
$ 6,943,940
$ 6,505,907
Unsecured term loans, net
1,194,466
1,075,826
Unsecured revolving credit facility
354,846
55,448
Non-recourse mortgages, net
191,387
401,821
Debt, net
8,684,639
8,039,002
Accounts payable, accrued expenses and other liabilities
647,335
596,994
Below-market rent and other intangible liabilities, net
111,339
119,831
Deferred income taxes
164,846
147,461
Dividends payable
204,722
197,612
Total liabilities
9,812,881
9,100,900
Preferred stock, $0.001 par value, 50,000,000 shares authorized; none issued
—
—
Common stock, $0.001 par value, 450,000,000 shares authorized; 219,144,586 and 218,848,844 shares, respectively, issued and outstanding
219
219
Additional paid-in capital
11,822,063
11,805,179
Distributions in excess of accumulated earnings
(3,484,513)
(3,203,974)
Deferred compensation obligation
80,186
78,503
Accumulated other comprehensive loss
(262,222)
(250,232)
Total stockholders' equity
8,155,733
8,429,695
Noncontrolling interests
16,426
4,429
Total equity
8,172,159
8,434,124
Total liabilities and equity
$ 17,985,040
$ 17,535,024
________
(a)
Includes $2.0 billion and $1.8 billion of accumulated depreciation on buildings and improvements as of September 30, 2025 and December 31, 2024, respectively, and $1.5 billion and $1.4 billion of accumulated amortization on lease intangibles as of September 30, 2025 and December 31, 2024, respectively.
W. P. CAREY INC.
Quarterly Consolidated Statements of Income (Unaudited)
(in thousands, except share and per share amounts)
Three Months Ended
September 30, 2025
June 30, 2025
September 30, 2024
Revenues
Real Estate:
Lease revenues
$ 372,087
$ 364,195
$ 334,039
Income from finance leases and loans receivable
26,498
20,276
15,712
Operating property revenues
26,771
34,287
37,323
Other lease-related income
3,660
9,643
7,701
429,016
428,401
394,775
Investment Management:
Asset management revenue
1,218
1,304
1,557
Other advisory income and reimbursements
1,069
1,072
1,051
2,287
2,376
2,608
431,303
430,777
397,383
Operating Expenses
Depreciation and amortization
125,586
120,595
115,705
General and administrative
23,656
24,150
22,679
Impairment charges — real estate
19,474
4,349
—
Operating property expenses
15,049
16,721
17,765
Property expenses, excluding reimbursable tenant costs
14,637
13,623
10,993
Reimbursable tenant costs
14,562
17,718
13,337
Stock-based compensation expense
11,153
10,943
13,468
Merger and other expenses
1,021
192
283
225,138
208,291
194,230
Other Income and Expenses
Interest expense
(75,226)
(71,795)
(72,526)
Gain on sale of real estate, net
44,401
52,824
15,534
Other gains and (losses) (a)
(31,011)
(148,768)
(77,107)
Non-operating income (b)
3,030
3,495
13,669
Earnings from equity method investments
2,361
6,161
6,124
Gain on change in control of interests (c)
—
—
31,849
(56,445)
(158,083)
(82,457)
Income before income taxes
149,720
64,403
120,696
Provision for income taxes
(8,495)
(13,091)
(9,044)
Net Income
141,225
51,312
111,652
Net (income) loss attributable to noncontrolling interests
(229)
(92)
46
Net Income Attributable to W. P. Carey
$ 140,996
$ 51,220
$ 111,698
Basic Earnings Per Share
$ 0.64
$ 0.23
$ 0.51
Diluted Earnings Per Share
$ 0.64
$ 0.23
$ 0.51
Weighted-Average Shares Outstanding
Basic
220,562,909
220,569,259
220,221,366
Diluted
221,087,833
220,874,935
220,404,149
Dividends Declared Per Share
$ 0.910
$ 0.900
$ 0.875
__________
(a)
Amount for the three months ended September 30, 2025 is primarily comprised of a mark-to-market unrealized loss for our investment in shares of Lineage of $22.6 million, a non-cash allowance for credit losses of $4.8 million and net losses on foreign currency exchange rate movements of $4.4 million .
(b)
Amount for the three months ended September 30, 2025 is comprised of a dividend of $2.8 million from our investment in shares of Lineage, interest income on deposits of $1.7 million and realized losses on foreign currency exchange derivatives of $1.5 million.
(c)
Amount for the three months ended September 30, 2024 represents a gain recognized on the remaining interest in an investment acquired during the third quarter of 2024, which we had previously accounted for under the equity method
W. P. CAREY INC.
Year-to-Date Consolidated Statements of Income (Unaudited)
(in thousands, except share and per share amounts)
Nine Months Ended September 30,
2025
2024
Revenues
Real Estate:
Lease revenues
$ 1,090,050
$ 980,394
Income from finance leases and loans receivable
64,232
56,466
Operating property revenues
94,152
112,681
Other lease-related income
16,424
19,005
1,264,858
1,168,546
Investment Management:
Asset management and other revenue
3,872
5,136
Other advisory income and reimbursements
3,208
3,171
7,080
8,307
1,271,938
1,176,853
Operating Expenses
Depreciation and amortization
375,788
371,954
General and administrative
74,773
74,715
Reimbursable tenant costs
49,372
40,314
Operating property expenses
48,314
54,280
Property expenses, excluding reimbursable tenant costs
39,966
37,097
Stock-based compensation expense
31,244
31,227
Impairment charges — real estate
30,677
15,752
Merger and other expenses
1,769
4,941
651,903
630,280
Other Income and Expenses
Other gains and (losses)
(221,976)
(60,764)
Interest expense
(215,825)
(206,484)
Gain on sale of real estate, net
141,002
70,342
Non-operating income
14,435
38,389
Earnings from equity method investments
13,900
17,624
Gain on change in control of interests
—
31,849
(268,464)
(109,044)
Income before income taxes
351,571
437,529
Provision for income taxes
(33,218)
(23,937)
Net Income
318,353
413,592
Net (income) loss attributable to noncontrolling interests
(313)
224
Net Income Attributable to W. P. Carey
$ 318,040
$ 413,816
Basic Earnings Per Share
$ 1.44
$ 1.88
Diluted Earnings Per Share
$ 1.44
$ 1.88
Weighted-Average Shares Outstanding
Basic
220,511,825
220,149,886
Diluted
221,033,628
220,425,244
Dividends Declared Per Share
$ 2.700
$ 2.610
W. P. CAREY INC.
Quarterly Reconciliation of Net Income to Adjusted Funds from Operations (AFFO) (Unaudited)
(in thousands, except share and per share amounts)
Three Months Ended
September 30, 2025
June 30, 2025
September 30, 2024
Net income attributable to W. P. Carey
$ 140,996
$ 51,220
$ 111,698
Adjustments:
Depreciation and amortization of real property
124,906
119,930
115,028
Gain on sale of real estate, net
(44,401)
(52,824)
(15,534)
Impairment charges — real estate
19,474
4,349
—
Gain on change in control of interests (a)
—
—
(31,849)
Proportionate share of adjustments to earnings from equity method investments (b)
2,271
2,231
3,028
Proportionate share of adjustments for noncontrolling interests (c)
(82)
(82)
(96)
Total adjustments
102,168
73,604
70,577
FFO (as defined by NAREIT) Attributable to W. P. Carey (d)
243,164
124,824
182,275
Adjustments:
Other (gains) and losses (e)
31,011
148,768
77,107
Straight-line and other leasing and financing adjustments
(20,424)
(15,374)
(21,187)
Stock-based compensation
11,153
10,943
13,468
Amortization of deferred financing costs
4,874
4,628
4,851
Above- and below-market rent intangible lease amortization, net
4,363
5,061
6,263
Tax (benefit) expense – deferred and other
(1,215)
2,820
(1,576)
Merger and other expenses
1,021
192
283
Other amortization and non-cash items
587
579
587
Proportionate share of adjustments to earnings from equity method investments (b)
2,194
309
(2,632)
Proportionate share of adjustments for noncontrolling interests (c)
(99)
(80)
(91)
Total adjustments
33,465
157,846
77,073
AFFO Attributable to W. P. Carey (d)
$ 276,629
$ 282,670
$ 259,348
Summary
FFO (as defined by NAREIT) attributable to W. P. Carey (d)
$ 243,164
$ 124,824
$ 182,275
FFO (as defined by NAREIT) attributable to W. P. Carey per diluted share (d)
$ 1.10
$ 0.57
$ 0.83
AFFO attributable to W. P. Carey (d)
$ 276,629
$ 282,670
$ 259,348
AFFO attributable to W. P. Carey per diluted share (d)
$ 1.25
$ 1.28
$ 1.18
Diluted weighted-average shares outstanding
221,087,833
220,874,935
220,404,149
W. P. CAREY INC.
Year-to-Date Reconciliation of Net Income to Adjusted Funds from Operations (AFFO) (Unaudited)
(in thousands, except share and per share amounts)
Nine Months Ended September 30,
2025
2024
Net income attributable to W. P. Carey
$ 318,040
$ 413,816
Adjustments:
Depreciation and amortization of real property
373,773
369,981
Gain on sale of real estate, net
(141,002)
(70,342)
Impairment charges — real estate
30,677
15,752
Gain on change in control of interests
—
(31,849)
Proportionate share of adjustments to earnings from equity method investments (b)
6,145
8,992
Proportionate share of adjustments for noncontrolling interests (c)
(242)
(300)
Total adjustments
269,351
292,234
FFO (as defined by NAREIT) Attributable to W. P. Carey (d)
587,391
706,050
Adjustments:
Other (gains) and losses
221,976
60,764
Straight-line and other leasing and financing adjustments
(54,831)
(56,050)
Stock-based compensation
31,244
31,227
Amortization of deferred financing costs
14,284
13,994
Above- and below-market rent intangible lease amortization, net
10,547
16,097
Merger and other expenses
1,769
4,941
Other amortization and non-cash items
1,726
1,746
Tax expense (benefit) – deferred and other
823
(4,341)
Proportionate share of adjustments to earnings from equity method investments (b)
2,417
(5,797)
Proportionate share of adjustments for noncontrolling interests (c)
(227)
(292)
Total adjustments
229,728
62,289
AFFO Attributable to W. P. Carey (d)
$ 817,119
$ 768,339
Summary
FFO (as defined by NAREIT) attributable to W. P. Carey (d)
$ 587,391
$ 706,050
FFO (as defined by NAREIT) attributable to W. P. Carey per diluted share (d)
$ 2.66
$ 3.20
AFFO attributable to W. P. Carey (d)
$ 817,119
$ 768,339
AFFO attributable to W. P. Carey per diluted share (d)
$ 3.70
$ 3.49
Diluted weighted-average shares outstanding
221,033,628
220,425,244
__________
(a)
Amount for the three months ended September 30, 2024 represents a gain recognized on the remaining interest in an investment acquired during the third quarter of 2024, which we had previously accounted for under the equity method.
(b)
Equity income, including amounts that are not typically recognized for FFO and AFFO, is recognized within Earnings from equity method investments on the consolidated statements of income. This represents adjustments to equity income to reflect FFO and AFFO on a pro rata basis.
(c)
Adjustments disclosed elsewhere in this reconciliation are on a consolidated basis. This adjustment reflects our FFO or AFFO on a pro rata basis.
(d)
FFO and AFFO are non-GAAP measures. See below for a description of FFO and AFFO.
(e)
Amount for the three months ended September 30, 2025 is primarily comprised of a mark-to-market unrealized loss for our investment in shares of Lineage of $22.6 million, a non-cash allowance for credit losses of $4.8 million and net losses on foreign currency exchange rate movements of $4.4 million.
Non-GAAP Financial Disclosure
Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO)
Due to certain unique operating characteristics of real estate companies, as discussed below, the National Association of Real Estate Investment Trusts (NAREIT), an industry trade group, has promulgated a non-GAAP measure known as FFO, which we believe to be an appropriate supplemental measure, when used in addition to and in conjunction with results presented in accordance with GAAP, to reflect the operating performance of a REIT. The use of FFO is recommended by the REIT industry as a supplemental non-GAAP measure. FFO is not equivalent to, nor a substitute for, net income or loss as determined under GAAP.
We define FFO, a non-GAAP measure, consistent with the standards established by the White Paper on FFO approved by the Board of Governors of NAREIT, as restated in December 2018. The White Paper defines FFO as net income or loss computed in accordance with GAAP, excluding gains or losses from the sale of certain real estate, impairment charges on real estate or other assets incidental to the company's main business, gains or losses on changes in control of interests in real estate and depreciation and amortization from real estate assets; and after adjustments for unconsolidated partnerships and jointly owned investments. Adjustments for unconsolidated partnerships and jointly owned investments are calculated to reflect FFO on the same basis.
We also modify the NAREIT computation of FFO to adjust GAAP net income for certain non-cash charges, such as amortization of real estate-related intangibles, deferred income tax benefits and expenses, straight-line rent and related reserves, other non-cash rent adjustments, non-cash allowance for credit losses on loans receivable and finance leases, stock-based compensation, non-cash environmental accretion expense, amortization of discounts and premiums on debt and amortization of deferred financing costs. Our assessment of our operations is focused on long-term sustainability and not on such non-cash items, which may cause short-term fluctuations in net income but have no impact on cash flows. Additionally, we exclude non-core income and expenses, such as gains or losses from extinguishment of debt, gains or losses on the mark-to-market fair value of equity securities, merger and acquisition expenses, spin-off expenses, and income and expenses associated with our captive insurance company. We also exclude realized and unrealized gains/losses on foreign currency exchange rate movements (other than those realized on the settlement of foreign currency derivatives), which are not considered fundamental attributes of our business plan and do not affect our overall long-term operating performance. We refer to our modified definition of FFO as AFFO. We exclude these items from GAAP net income to arrive at AFFO as they are not the primary drivers in our decision-making process and excluding these items provides investors a view of our portfolio performance over time and makes it more comparable to other REITs. AFFO also reflects adjustments for unconsolidated partnerships and jointly owned investments. We use AFFO as one measure of our operating performance when we formulate corporate goals, evaluate the effectiveness of our strategies and determine executive compensation.
We believe that AFFO is a useful supplemental measure for investors to consider as we believe it will help them to better assess the sustainability of our operating performance without the potentially distorting impact of these short-term fluctuations. However, there are limits on the usefulness of AFFO to investors. For example, impairment charges and unrealized foreign currency exchange rate losses that we exclude may become actual realized losses upon the ultimate disposition of the properties in the form of lower cash proceeds or other considerations. We use our FFO and AFFO measures as supplemental financial measures of operating performance. We do not use our FFO and AFFO measures as, nor should they be considered to be, alternatives to net income computed under GAAP, or as alternatives to net cash provided by operating activities computed under GAAP, or as indicators of our ability to fund our cash needs.
SOURCE W. P. Carey Inc.