Financial Performance - Net income attributable to W. P. Carey decreased to $125,824 from $159,223, a decline of approximately 21%[17] - Basic earnings per share decreased to $0.57 from $0.72, reflecting a decrease of about 20.8%[17] - Net income for the three months ended March 31, 2025, was $125.816 million, a decrease from $159.086 million in the same period of 2024, representing a decline of approximately 21%[26] - For the three months ended March 31, 2025, net income was $125.8 million, a decrease of 21% from $159.2 million in the same period of 2024[156] - Basic earnings per share (EPS) for Q1 2025 was $0.57, compared to $0.72 in Q1 2024, reflecting a decline of approximately 21%[156] Revenue and Income - Lease revenues increased to $353,768 from $322,251, representing a growth of about 9.8% year-over-year[17] - Total operating lease income increased to $353.8 million, up from $322.3 million in the same period of 2024, representing a growth of 9.8%[65] - Revenue from hotel operating properties for the three months ended March 31, 2025, was $8.2 million, a decrease from $10.2 million in the same period of 2024, reflecting a decline of 19.6%[41] - The company recognized lease termination income of $1.7 million for the three months ended March 31, 2025[64] Assets and Liabilities - Total assets decreased to $17,307,305 from $17,535,024, a decline of approximately 1.3%[13] - Total liabilities decreased to $8,940,382 from $9,100,900, a reduction of approximately 1.8%[13] - Total stockholders' equity decreased to $8,362,363 from $8,429,695, a decrease of about 0.8%[13] - Cash and cash equivalents decreased significantly to $187,809 from $640,373, a decline of about 70.7%[13] - Cash and cash equivalents at the end of Q1 2025 were $217.629 million, a decrease from $1.104 billion at the end of Q1 2024, reflecting a decline of about 80%[26] Expenses - Depreciation and amortization expenses increased to $129,607 from $118,768, an increase of approximately 9.2%[17] - The company reported depreciation and amortization expenses of $134.521 million for Q1 2025, up from $123.487 million in Q1 2024, reflecting an increase of approximately 9%[26] - Depreciation expense for buildings and improvements subject to operating leases was $75.3 million for the three months ended March 31, 2025, compared to $71.6 million for the same period in 2024, an increase of 5.2%[56] - The net amortization of intangibles for the three months ended March 31, 2025, was $48,000,000, compared to $42,600,000 for the same period in 2024, reflecting a year-over-year increase of approximately 10.5%[92] Investments and Acquisitions - The company acquired 64 properties during the three months ended March 31, 2025, with total capitalized costs amounting to $176.3 million[57] - During Q1 2025, the company sold nine properties for total proceeds of $126.7 million, recognizing a net gain of $43.8 million[164] - In April 2025, the company completed two acquisitions totaling approximately $171.0 million[166] Cash Flow and Financing - Total cash provided by operating activities for Q1 2025 was $273.213 million, compared to $1.035 billion in Q1 2024, indicating a significant decrease of about 73%[26] - The company incurred a net cash used in investing activities of $173.870 million in Q1 2025, compared to $236.972 million in Q1 2024, showing a decrease of approximately 26%[26] - The company funded $248,900,000 of a $261,900,000 construction loan for the Las Vegas Retail Complex as of March 31, 2025, with an outstanding principal of $243,900,000[99] Derivatives and Hedging - The estimated fair value of total derivatives decreased from $23.5 million on December 31, 2024, to $10.6 million on March 31, 2025, indicating a reduction of approximately 55.1%[120] - The company reported a total loss of $12.5 million on derivatives in Other Comprehensive Income for the three months ended March 31, 2025, compared to a gain of $7.0 million in the same period of 2024[121] - The fair value of foreign currency collars designated as cash flow hedging instruments was $9.6 million on March 31, 2025, down from $21.6 million on December 31, 2024[120] Equity and Dividends - Dividends declared for Q1 2025 were $0.890 per share, compared to $0.865 per share in Q1 2024, representing an increase of approximately 2.9%[26] - The company declared a quarterly dividend of $0.890 per share, paid on April 15, 2025[160] Credit and Debt - The carrying value of Senior Unsecured Notes was $6,211.9 million, down from $6,505.9 million on December 31, 2024, reflecting a decrease of approximately 4.5%[116] - The total principal balance of Senior Unsecured Notes outstanding was $6.3 billion as of March 31, 2025[143] - Scheduled debt principal payments total $7.937917 billion as of March 31, 2025, with the largest payment of $1.244804 billion due in 2029[151] Miscellaneous - The company was in compliance with all financial maintenance covenants at March 31, 2025[146] - The company established an "at-the-market" offering program with a gross sales price of up to $1.0 billion, but did not issue any shares during the reporting period[158]

W.P. Carey (WPC) reported first-quarter 2025 adjusted funds from operations (AFFO) per share of $1.17, missing the Zacks Consensus Estimate of $1.19. However, the figure improved 2.6% from the year-ago quarter.Results reflect dispositions impacting revenues, though net investment activity and certain lease structuring aided the performance to some extent.Quarterly revenues of $407.4 million underperformed the Zacks Consensus Estimate of $418.2 million. However, revenues increased 5.3% year over year.Per Jas ...

Financial Data and Key Metrics Changes - The company generated AFFO per share of $1.17 for Q1 2025, reflecting a year-over-year increase of 2.6% [22] - The AFFO guidance range has been reaffirmed at $4.82 to $4.92 per share, indicating a cautious optimism for exceeding the 3.6% growth implied in the guidance [22][31] - Operating property NOI totaled $16.6 million, with expectations of generating between $70 million and $75 million of operating NOI during 2025, excluding expected dispositions [27][29] Business Line Data and Key Metrics Changes - The company closed approximately $450 million in investments year-to-date, with an initial weighted average cap rate of 7.4% [9] - Contractual same-store rent growth for the quarter was 2.4% year-over-year, expected to remain around that level for the full year [23] - Comprehensive same-store growth for the quarter was 4.5% year-over-year, partly benefiting from prior rent abatements [24] Market Data and Key Metrics Changes - The investment pipeline is expected to close approximately $570 million in deals for 2025, with a solid near-term pipeline [10] - The company has seen little disruption in net lease transaction activity, indicating resilience in the market for net lease real estate [10][11] - The company is currently in the market with a sizable portfolio of operating self-storage assets, representing about half of its total self-storage operating NOI [14] Company Strategy and Development Direction - The company remains focused on executing its investment strategy while navigating uncertainties related to tariffs and tenant credit [6][8] - The strategy includes funding investments primarily through non-core asset sales, with expectations of generating proceeds at cap rates that allow for accretive funding [23][29] - The company believes its investment spreads are underappreciated by the market, emphasizing the importance of rent growth over the life of leases [15] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the operating environment, noting that uncertainty surrounding tariffs has not yet impacted business performance [6][7] - The company remains comfortable with its guidance assumptions and sees potential for increasing AFFO growth estimates as visibility improves [19][32] - Management highlighted that the portfolio is built to withstand economic downturns, focusing on large companies with greater liquidity [16] Other Important Information - The company refinanced its euro term loan, fixing its interest rate below 3% through an interest rate swap, and has minimal additional debt maturities in 2025 [12][29] - The company declared a dividend of $0.89 per share, representing a 2.9% increase over the prior year, with an expected annual payout ratio of 73% [31] Q&A Session Summary Question: Can you provide details on cap rates and the pipeline split between retail, industrial, and US/Europe? - The company targets deals in the mid-sevens for cap rates, with the pipeline being approximately 50% weighted towards Europe [35][37] Question: Will you consider selling more self-storage assets to fund acquisitions above the current outlook? - The company has flexibility in its disposition strategy and can consider selling more self-storage assets if needed [43][45] Question: How does the company view the impact of tariffs on its European exposure? - The majority of European tenants operate domestically, making them less susceptible to tariff impacts [54][55] Question: What is the company's strategy regarding potential rent loss and tenant credit? - The company has accounted for potential rent loss in its guidance and believes its estimates are sufficient even if tariffs pressure tenants [26][62] Question: Is there any concern regarding input costs for capital projects? - Most capital investments are subject to guaranteed contracts, minimizing exposure to cost fluctuations [75][76] Question: How competitive is the net lease market currently? - The net lease market remains competitive, particularly in the US, but the company benefits from being an all-cash buyer [78][80]

Financial Data and Key Metrics Changes - The company generated AFFO per share of $1.17 for the first quarter, reflecting a year-over-year increase of 2.6% [21] - The AFFO guidance range remains reaffirmed at $4.82 to $4.92 per share, with expectations for growth above the 3.6% implied in the guidance [21][30] - Operating property NOI totaled $16.6 million, with expectations of generating between $70 million and $75 million of operating NOI during 2025, excluding expected dispositions [26][28] Business Line Data and Key Metrics Changes - The company closed approximately $450 million in investments year-to-date, with an initial weighted average cap rate of 7.4% [7] - Contractual same-store rent growth for the quarter was 2.4% year-over-year, with comprehensive same-store growth at 4.5% [22] - Leasing activity included 16 renewals or extensions, representing 1.8% of portfolio ABR, recapturing 103% of prior rents [23] Market Data and Key Metrics Changes - The investment pipeline is expected to be approximately $570 million for 2025, with a solid near-term pipeline [8] - The market for net lease real estate remains stable, with minimal disruption in transaction activity despite broader economic uncertainties [8][10] - The company anticipates that sale leaseback transactions will continue to increase, providing attractive capital sources during market volatility [9] Company Strategy and Development Direction - The company remains focused on executing its investment plan for 2025, with good visibility into additional deals closing soon [5] - The strategy includes funding investments primarily through non-core asset sales, with expectations to generate at least 100 basis points of spread between asset sales and new investments [12][14] - The company is positioned to benefit from potential tightening of mortgage lending criteria, enhancing its competitive advantage in new investments [10] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the operating environment, noting that uncertainty from tariffs has not yet impacted business performance [5][6] - The company believes its portfolio is resilient to economic downturns, focusing on large tenants with strong liquidity [15] - Management remains comfortable with the assumptions in their guidance and sees potential for growth in AFFO as visibility improves [18][31] Other Important Information - The company refinanced its euro term loan, fixing the interest rate below 3% through an interest rate swap, with minimal near-term debt maturities [11][29] - The dividend declared was $0.89 per share, representing a 2.9% increase over the prior year, with an expected annual payout ratio of 73% [30] Q&A Session Summary Question: Can you provide details on cap rates and the split between retail, industrial, and US/Europe? - The company targets cap rates in the mid-sevens, with a pipeline that is approximately 50% weighted towards Europe [36][38] Question: Will you consider selling more self-storage assets to fund acquisitions? - The company has flexibility in its disposition strategy and can consider additional self-storage sales if needed [44][46] Question: How does the company view its European exposure in relation to tariffs? - The majority of European tenants operate domestically, reducing exposure to tariffs, and the company remains confident in its European portfolio [54][56] Question: What is the company's approach to potential rent loss and repositioning capital? - The potential rent loss estimate includes downtime and is considered conservative, with minimal capital expenditures expected for repositioning [62][65] Question: What is the outlook for occupancy and known vacates in the next 18 months? - The overall scale of lease expirations is small, with one warehouse property expected to non-renew, fully embedded in guidance [71][72] Question: How is the company managing input costs for capital projects? - Most capital investments are subject to guaranteed contracts, with large buffers built in to manage cost exposure [77] Question: How competitive is the net lease market in the US and Europe? - The US market remains competitive with new entrants, while Europe is less competitive, providing the company with an advantage as an all-cash buyer [80][81] Question: How has inflation impacted lease negotiations? - The company has been able to push through higher fixed increases in leases, particularly in Europe, while CPI-linked increases have become more challenging in the US [86][88]

Portfolio Overview - W. P. Carey has a large, diversified portfolio comprising 1,614 properties and 366 tenants[20] - The portfolio's square footage totals 176.7 million[20] - The annualized base rent (ABR) for the portfolio is $1.40 billion[20] - North America accounts for 67% of the ABR, while Europe contributes 33%[20] - The weighted average lease term (WALT) is 12.3 years, and the occupancy rate is 98.3%[20] - Investment grade tenants represent 23.9% of the ABR, and the top 10 tenants account for 19.2% of the ABR[20] Rent Escalation and Growth - 50% of leases have CPI-linked rent escalations, and 47% have fixed escalations[20] - Contractual same store ABR growth is 2.4%[40] Balance Sheet - The company's total equity is $13.82 billion[64] - Total pro rata net debt is $7.833 billion[64] - Pro rata net debt to adjusted EBITDA is 5.8x[64] - Pro rata net debt to enterprise value is 36.2%[64]

Core Viewpoint - W.P. Carey (WPC) reported quarterly funds from operations (FFO) of $1.17 per share, missing the Zacks Consensus Estimate of $1.20 per share, but showing an increase from $1.14 per share a year ago, indicating a -2.50% surprise in FFO performance [1] Financial Performance - The company posted revenues of $407.44 million for the quarter ended March 2025, which was below the Zacks Consensus Estimate by 0.97%, compared to $389.8 million in the same quarter last year [2] - Over the last four quarters, W.P. Carey has surpassed consensus FFO estimates two times and topped consensus revenue estimates two times [2] Stock Performance - W.P. Carey shares have increased approximately 11.5% since the beginning of the year, contrasting with a -6% decline in the S&P 500 [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] Future Outlook - The current consensus FFO estimate for the upcoming quarter is $1.21, with expected revenues of $412.71 million, and for the current fiscal year, the estimate is $4.83 on $1.67 billion in revenues [7] - The estimate revisions trend for W.P. Carey is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, suggesting it is expected to outperform the market in the near future [6] Industry Context - The REIT and Equity Trust - Other industry, to which W.P. Carey belongs, is currently ranked in the bottom 38% of over 250 Zacks industries, indicating potential challenges ahead [8]

Exhibit 99.2 W. P. Carey Inc. Supplemental Information First Quarter 2025 Terms and Definitions As used in this supplemental package, the terms "W. P. Carey," "WPC," "we," "us" and "our" include W. P. Carey Inc., its consolidated subsidiaries and its predecessors, unless otherwise indicated. Other terms and definitions are as follows: | REIT | Real estate investment trust | | --- | --- | | U.S. | United States | | ABR | Contractual minimum annualized base rent | | ASC | Accounting Standards Codification | | ...

Core Insights - The article discusses the benefits of investing in Real Estate Investment Trusts (REITs) as a way to generate passive income during retirement without the hassles of property management [2][3]. Group 1: Realty Income - Realty Income is a net lease REIT with a portfolio of 15,621 properties, primarily retail, offering a 5.7% dividend yield [4][6]. - The company has a diversified tenant base, with its three largest tenants contributing only 10% of total rent, which helps mitigate risks [4]. - Realty Income has consistently increased its monthly dividend since its inception, raising it for the 130th quarter in March 2024, with a 3.9% annual growth rate since 2015 [6][7]. Group 2: W.P. Carey - W.P. Carey is a diversified net lease REIT that reduced its quarterly dividend by 19.7% in 2023 due to a spinoff, but has since resumed increasing its payouts [8][9]. - The REIT has a portfolio of 1,555 properties, with its top three tenants accounting for only 7.1% of annualized rent, indicating strong diversification [10]. - W.P. Carey benefits from low borrowing costs, having secured 600 million Euros at a 3.7% interest rate for 10 years, positioning it well for future dividend increases [12].

W. P. Carey (NYSE:WPC) shot up 15% since its 4Q24 earnings on 2/11/25. SA It has since fallen back down on the broader market crash, allowing us to still get in at the cheaper price. It was a small beat of 2 cents, and guidance called for a modest 3% AFFO/share growth in 2025. So why did the stock price move so much? I posit that it is because WPC has found a new growth engine. WPC's Phases WPC is a large and seasoned triple net REIT. Over its history, it has had distinct phases of operations. While managin ...

Core Viewpoint - W.P. Carey (WPC) is expected to report a year-over-year increase in revenues and funds from operations (FFO) per share for the first quarter of 2025, with a core FFO per share of $1.21 in the last quarter, surpassing estimates [1][2]. Financial Performance - The Zacks Consensus Estimate for WPC's lease revenues for the first quarter is $357.5 million, reflecting a growth of 10.9% year-over-year [4]. - The total revenue estimate for the first quarter stands at $418.2 million, indicating a rise of 7.29% from the previous year [4]. - The quarterly FFO per share estimate has been raised by 1 cent to $1.19, suggesting a 4.39% increase year-over-year [5]. Operational Factors - W.P. Carey's diverse, high-quality, single-tenant net lease commercial real estate portfolio is expected to contribute positively to its performance, with higher occupancy rates and better risk-adjusted returns [2][3]. - The company's focus on long-term sale-leaseback transactions with contractual rental increases and strategic portfolio rebalancing is likely to support steady revenue generation [3]. Market Expectations - The company has an Earnings ESP of +0.56% and a Zacks Rank of 2, indicating a strong likelihood of beating FFO estimates this quarter [6]. - Analysts have shown confidence in WPC's performance, as evidenced by the raised consensus estimates [5]. Comparisons with Peers - Other REITs such as Host Hotels & Resorts and Ventas are also expected to report positive surprises, with Earnings ESPs of +2.26% and +0.18%, respectively [7][8].