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 ...

W. P. Carey (WPC) Q1 2025 Earnings Call April 30, 2025 11:00 AM ET Company Participants Peter Sands - Executive Director & Head of Investor RelationsJason Fox - CEOToni Sanzone - MD & CFOGreg Mcginniss - DirectorSmedes Rose - DirectorBrooks Gordon - MD & Head of Asset ManagementJana Galan - DirectorAnthony Paolone - Executive DirectorSpenser Glimcher - Managing DirectorJames Kammert - Managing DirectorEric Borden - Vice PresidentJason Wayne - VP - Equity Research Conference Call Participants Michael Goldsmi ...

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]

1Q25 W. P. Carey Inc. Investor Presentation 50+ Years of Investing for the Long Run® Table of Contents | Overview | 3 | | --- | --- | | Real Estate Portfolio | 7 | | Balance Sheet | 20 | | Corporate Responsibility | 24 | | Appendix – Additional Tenant Data | 26 | Unless otherwise noted, all data in this presentation is as of March 31, 2025. Amounts may not sum to totals due to rounding. Overview 3 Company Highlights W. P. Carey (NYSE: WPC) is a REIT that specializes in investing in single-tenant net lease c ...

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 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].

Core Insights - The article emphasizes the importance of identifying companies with strong growth in revenue, earnings, and free cash flow as key investment criteria [1] - It highlights a preference for companies with excellent growth prospects and favorable valuations, particularly those with high free cash flow margins, dividend stocks, and generous share repurchase programs [1] Summary by Categories Investment Criteria - Companies should demonstrate growth in revenue, earnings, and free cash flow [1] - Favorable valuations are essential for stock selection [1] Company Characteristics - Preference for steadily growing companies with high free cash flow margins [1] - Interest in dividend stocks and those with significant share repurchase programs [1]

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The service offers a free two-week trial for potential investors to explore exclusive income-focused portfolios [1] Group 2 - The article emphasizes the importance of making educated guesses in stock pricing, similar to the game show "The Price Is Right" [2] - The author has over 14 years of investment experience and focuses on defensive stocks with a medium- to long-term investment horizon [2]

Group 1 - W. P. Carey (NYSE: WPC) has been a long-term investment that has provided attractive results, despite some miscommunication regarding the exit from office properties, which is viewed as a correct decision [1] - The focus on dividend investing is emphasized as a solid financial strategy, contributing to financial freedom and long-term wealth building [2] - The author has extensive experience in M&A and business valuation, which informs their investment decisions across various sectors including tech, real estate, software, finance, and consumer staples [2] Group 2 - The article expresses a beneficial long position in WPC and BNL, indicating confidence in these investments [3] - The insights shared are based on personal opinions and experiences, with no external compensation influencing the views presented [3]