W. P. Carey(US:WPC)2025-10-29 20:15Financial Performance - Net income attributable to W. P. Carey for Q3 2025 was $140,996, up 26.2% from $111,698 in Q3 2024[18]. - Basic earnings per share for Q3 2025 were $0.64, compared to $0.51 in Q3 2024, reflecting a growth of 25.5%[18]. - Comprehensive income for Q3 2025 was $143,834, up from $126,540 in Q3 2024, an increase of 13.7%[21]. - For the nine months ended September 30, 2025, net income was $318,353, a decrease of 23% compared to $413,592 in 2024[29]. - Total revenue for the nine months ended September 30, 2025, was $7,080 million, down 14.8% from $8,307 million in the same period of 2024[48]. Assets and Liabilities - Total assets increased to $17,985,040, up from $17,535,024 as of December 31, 2024, representing a growth of 2.56%[14]. - Total liabilities increased to $9,812,881 from $9,100,900, marking an increase of 7.8%[14]. - The company’s total equity decreased to $8,172,159 from $8,434,124, a decline of 3.1%[14]. - The carrying value of Land, buildings, and improvements increased by $433.3 million due to a 13.0% depreciation of the U.S. dollar against the euro[57]. - The carrying value of net investments in sales-type leases decreased by $162.0 million due to the sale of a portfolio of 26 funeral homes located in Spain[96]. Cash Flow and Investments - Cash provided by operating activities was $977,686, down 36% from $1,536,765 in the same period of 2024[29]. - Total cash and cash equivalents and restricted cash at the end of the period was $349,576, a decrease from $690,701 at the beginning of the period[44]. - Proceeds from the sale of real estate were $770,055, significantly higher than $287,565 in the same period of 2024[29]. - The company had a net cash used in investing activities of $756,981, up from $436,022 in the same period of 2024[29]. - The company completed construction projects totaling $46.9 million during the nine months ended September 30, 2025[69]. Dividends and Shareholder Returns - Dividends declared for the quarter were $0.910 per share, totaling $201.142 million, compared to $0.875 per share totaling $193.156 million in the previous year, reflecting a 4% increase in dividend per share[24]. - The company declared a quarterly dividend of $0.910 per share during Q3 2025, totaling $2.700 per share for the nine months ended September 30, 2025[180][181]. Real Estate and Property Management - The portfolio comprised 1,662 properties totaling approximately 183 million square feet, with an occupancy rate of 97.0% and a weighted-average lease term of 12.1 years[33]. - Lease revenues for Q3 2025 were $372,087, an increase of 11.4% compared to $334,039 in Q3 2024[18]. - Lease revenues generated from hotel operating properties were $10.7 million for Q3 2025, down from $11.6 million in Q3 2024[43]. - The company sold 21 properties during the nine months ended September 30, 2025, resulting in a decrease of $158.6 million in the carrying value of Land, buildings, and improvements[71]. - The company sold 29 properties during Q3 2025 for total proceeds of $483.0 million, with a net gain of $44.4 million[185]. Debt and Financing - The carrying value of Senior Unsecured Notes was $6,505.9 million as of September 30, 2025, compared to $6,232.9 million at December 31, 2024[128]. - The total outstanding balance of Senior Unsecured Notes was $7.0 billion as of September 30, 2025[158]. - The company refinanced its €500.0 million Unsecured Term Loan due 2029, extending the maturity to April 24, 2029, with a borrowing rate of 2.80% as of September 30, 2025[154]. - The company had an available capacity of approximately $1.6 billion under its Unsecured Revolving Credit Facility as of September 30, 2025[156]. - Scheduled debt principal payments total $8,758.02 million as of September 30, 2025, with the largest payments due in 2029 at $1,454.71 million[167]. Market Risks and Currency Exposure - The company is exposed to market risks including interest rate risk and foreign currency exchange risk, but does not use derivative instruments for speculative purposes[286]. - The company is subject to foreign currency exchange rate risk due to international investments, primarily in Europe, Canada, and Japan[294]. - A 1% increase or decrease in the exchange rate between the euro, British pound sterling, or Danish krone and the U.S. dollar would result in changes in projected estimated cash flow of $2.3 million, $0.4 million, and $0.3 million, respectively[294]. - The company uses foreign currency collars to hedge certain foreign currency cash flow exposures[296]. Impairments and Losses - Impairment charges for real estate were $19,474 in Q3 2025, compared to no charges in Q3 2024[18]. - The company recorded an impairment charge of $30.7 million on ten properties during the nine months ended September 30, 2025[135]. - The company recognized non-cash unrealized losses on its investment in shares of Lineage amounting to $22.6 million and $43.6 million for the three months ended September 30, 2025 and 2024, respectively, and $91.7 million and $43.6 million for the nine months ended September 30, 2025 and 2024, respectively[124].