W. P. Carey Announces First Quarter 2026 Financial Results
NEW YORK, April 28, 2026 /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 first quarter ended March 31, 2026.
Financial Highlights
2026 First Quarter
Net income attributable to W. P. Carey (millions)
$176.3
Diluted earnings per share
$0.80
AFFO (millions)
$288.7
AFFO per diluted share
$1.30
Real Estate Portfolio
Balance Sheet and Capitalization
MANAGEMENT COMMENTARY
"We've had a strong start to the year, backed by continued investment momentum and successful execution in the capital markets. Combined with the depth of our pipeline and the performance of our portfolio, this has enabled us to raise our full-year outlook for both investment volume and AFFO per share," said Jason Fox, Chief Executive Officer.
"With substantial liquidity and our 2026 equity needs already addressed, we're confident in our ability to continue deploying capital accretively. And based on the investments we've completed to date, our current pipeline and capital projects delivering this year, we have visibility into well over a billion dollars of investments at cap rates averaging in the mid-sevens. When coupled with our best-in-class rent escalations, we believe the strength and consistency of that growth will drive long‑term shareholder value."
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 $1.5 billion and $2.0 billion, which is revised higher;
(ii) disposition volume of between $250 million and $750 million, which is unchanged;
(iii) total general and administrative expenses of between $103 million and $106 million, which is unchanged;
(iv) property expenses, excluding reimbursable tenant costs, of between $56 million and $60 million, which is unchanged; and
(v) tax expense (on an AFFO basis) of between $45 million and $49 million, which is unchanged.
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
Senior Unsecured Notes
Senior Unsecured Credit Facility Amendment
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Supplemental Information
The Company has provided supplemental unaudited financial and operating information regarding the 2026 first 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 April 28, 2026, and made available on the Company's website at ir.wpcarey.com/investor-relations.
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Live Conference Call and Audio Webcast Scheduled for Wednesday, April 29, 2026 at 11:00 a.m. Eastern Time
Please dial in at least 10 minutes prior to the start time.
Date/Time: Wednesday, April 29, 2026 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
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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 1,703 net lease properties covering approximately 185 million square feet as of March 31, 2026. 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
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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 W. P. Carey's ability to deploy capital, its current pipeline, its visibility into investment volume and cap rates, and statements about long-term shareholder value. 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, 2025. 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
[email protected]
Individual Investors:
W. P. Carey Inc.
1 (212) 492-8920
[email protected]
Press Contact:
Anna McGrath
1 (212) 492-1166
[email protected]
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W. P. CAREY INC.
Consolidated Balance Sheets (Unaudited)
(in thousands, except share and per share amounts)
March 31, 2026
December 31, 2025
Assets
Investments in real estate:
Land, buildings and improvements — net lease and other
$ 14,624,466
$ 14,451,306
Land, buildings and improvements — operating properties
228,074
286,079
Net investments in finance leases and loans receivable
1,199,048
1,171,886
In-place lease intangible assets and other
2,467,240
2,466,199
Above-market rent intangible assets
658,128
668,707
Investments in real estate
19,176,956
19,044,177
Accumulated depreciation and amortization (a)
(3,573,321)
(3,578,330)
Assets held for sale, net
10,536
3,327
Net investments in real estate
15,614,171
15,469,174
Equity method investments
309,337
310,178
Cash and cash equivalents
239,266
155,329
Other assets, net
1,053,277
1,068,480
Goodwill
983,970
987,071
Total assets
$ 18,200,021
$ 17,990,232
Liabilities and Equity
Debt:
Senior unsecured notes, net
$ 7,415,872
$ 6,950,261
Unsecured term loans, net
1,174,835
1,196,366
Unsecured revolving credit facility
61,968
435,417
Non-recourse mortgages, net
101,074
140,646
Debt, net
8,753,749
8,722,690
Accounts payable, accrued expenses and other liabilities
624,424
670,038
Below-market rent and other intangible liabilities, net
98,329
104,055
Deferred income taxes
151,742
151,820
Dividends payable
211,084
207,487
Total liabilities
9,839,328
9,856,090
Preferred stock, $0.001 par value, 50,000,000 shares authorized; none issued
—
—
Common stock, $0.001 par value, 450,000,000 shares authorized; 222,738,368 and 219,145,876 shares, respectively, issued and outstanding
223
219
Additional paid-in capital
12,059,559
11,830,737
Distributions in excess of accumulated earnings
(3,574,363)
(3,539,592)
Deferred compensation obligation
100,549
80,239
Accumulated other comprehensive loss
(241,286)
(253,346)
Total stockholders' equity
8,344,682
8,118,257
Noncontrolling interests
16,011
15,885
Total equity
8,360,693
8,134,142
Total liabilities and equity
$ 18,200,021
$ 17,990,232
________
(a)
Includes $2.1 billion of accumulated depreciation on buildings and improvements as of both March 31, 2026 and December 31, 2025, and $1.5 billion of accumulated amortization on lease intangibles as of both March 31, 2026 and December 31, 2025.
W. P. CAREY INC.
Quarterly Consolidated Statements of Income (Unaudited)
(in thousands, except share and per share amounts)
Three Months Ended
March 31, 2026
December 31, 2025
March 31, 2025
Revenues
Real Estate:
Lease revenues
$ 402,831
$ 389,154
$ 353,768
Income from finance leases and loans receivable
27,686
26,716
17,458
Operating property revenues
12,050
18,379
33,094
Other lease-related income
10,452
8,137
3,121
453,019
442,386
407,441
Investment Management:
Other advisory income and reimbursements
1,000
1,076
1,067
Asset management revenue
490
1,085
1,350
1,490
2,161
2,417
454,509
444,547
409,858
Operating Expenses
Depreciation and amortization
136,183
145,339
129,607
Impairment charges — real estate
40,008
39,690
6,854
General and administrative
27,348
25,899
26,967
Reimbursable tenant costs
19,692
19,371
17,092
Property expenses, excluding reimbursable tenant costs
14,552
13,859
11,706
Operating property expenses
8,694
11,863
16,544
Stock-based compensation expense
7,441
8,650
9,148
Merger and other expenses
1,180
478
556
255,098
265,149
218,474
Other Income and Expenses
Interest expense
(78,460)
(75,431)
(68,804)
Gain on sale of real estate, net
54,141
52,791
43,777
Other gains and (losses) (a)
6,791
(10,131)
(42,197)
Non-operating income (b)
4,704
2,516
7,910
Earnings from equity method investments
4,543
4,109
5,378
(8,281)
(26,146)
(53,936)
Income before income taxes
191,130
153,252
137,448
(Provision for) benefit from income taxes
(14,634)
1,310
(11,632)
Net Income
176,496
154,562
125,816
Net (income) loss attributable to noncontrolling interests
(194)
(6,243)
8
Net Income Attributable to W. P. Carey
$ 176,302
$ 148,319
$ 125,824
Basic Earnings Per Share
$ 0.80
$ 0.67
$ 0.57
Diluted Earnings Per Share
$ 0.80
$ 0.67
$ 0.57
Weighted-Average Shares Outstanding
Basic
220,620,496
220,469,827
220,401,156
Diluted
221,618,296
221,169,776
220,720,310
Dividends Declared Per Share
$ 0.930
$ 0.920
$ 0.890
__________
(a)
Amount for the three months ended March 31, 2026 primarily comprises net gains on foreign currency exchange rate movements of $15.5 million, a mark-to-market unrealized loss for our investment in shares of Lineage of $10.3 million and non-cash unrealized gains on non-hedging derivatives of $2.2 million.
(b)
Amount for the three months ended March 31, 2026 comprises a dividend of $2.9 million from our investment in shares of Lineage, interest income on deposits of $2.0 million and realized losses on foreign currency exchange derivatives of $0.2 million.
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
March 31, 2026
December 31, 2025
March 31, 2025
Net income attributable to W. P. Carey
$ 176,302
$ 148,319
$ 125,824
Adjustments:
Depreciation and amortization of real property
135,480
144,641
128,937
Gain on sale of real estate, net
(54,141)
(52,791)
(43,777)
Impairment charges — real estate
40,008
39,690
6,854
Proportionate share of adjustments to earnings from equity method investments (a)
2,263
2,255
1,643
Proportionate share of adjustments for noncontrolling interests (b)
(25)
5,958
(78)
Total adjustments
123,585
139,753
93,579
FFO (as defined by NAREIT) Attributable to W. P. Carey (c)
299,887
288,072
219,403
Adjustments:
Straight-line and other leasing and financing adjustments
(24,178)
(20,758)
(19,033)
Stock-based compensation
7,441
8,650
9,148
Other (gains) and losses (d)
(6,791)
10,131
42,197
Amortization of deferred financing costs
5,139
4,888
4,782
Tax expense (benefit) – deferred and other
2,727
(11,708)
(782)
Above- and below-market rent intangible lease amortization, net
2,498
941
1,123
Merger and other expenses
1,180
478
556
Other amortization and non-cash items
593
589
560
Proportionate share of adjustments to earnings from equity method investments (a)
213
(43)
(86)
Proportionate share of adjustments for noncontrolling interests (b)
(52)
(116)
(48)
Total adjustments
(11,230)
(6,948)
38,417
AFFO Attributable to W. P. Carey (c)
$ 288,657
$ 281,124
$ 257,820
Summary
FFO (as defined by NAREIT) attributable to W. P. Carey (c)
$ 299,887
$ 288,072
$ 219,403
FFO (as defined by NAREIT) attributable to W. P. Carey per diluted share (c)
$ 1.35
$ 1.30
$ 0.99
AFFO attributable to W. P. Carey (c)
$ 288,657
$ 281,124
$ 257,820
AFFO attributable to W. P. Carey per diluted share (c)
$ 1.30
$ 1.27
$ 1.17
Diluted weighted-average shares outstanding
221,618,296
221,169,776
220,720,310
__________
(a)
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.
(b)
Adjustments disclosed elsewhere in this reconciliation are on a consolidated basis. This adjustment reflects our FFO or AFFO on a pro rata basis.
(c)
FFO and AFFO are non-GAAP measures. See below for a description of FFO and AFFO.
(d)
Amount for the three months ended March 31, 2026 primarily comprises net gains on foreign currency exchange rate movements of $15.5 million, a mark-to-market unrealized loss for our investment in shares of Lineage of $10.3 million, and non-cash unrealized gains on non-hedging derivatives of $2.2 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 because they are not the primary drivers in our decision-making process and excluding these items provides investors with 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 because we believe it will help them 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, alternatives to net cash provided by operating activities computed under GAAP, or indicators of our ability to fund our cash needs.
SOURCE W. P. Carey Inc.