W. P. Carey(US:WPC) Prnewswire·2024-07-30 20:05Core Viewpoint - W. P. Carey Inc. reported its financial results for the second quarter of 2024, highlighting a decrease in revenues and adjusted funds from operations (AFFO), while maintaining a strong liquidity position and ongoing strategic initiatives to exit office assets [1][2][3]. Financial Performance - Revenues for the second quarter totaled $389.7 million, down 13.9% from $452.6 million in the same quarter of 2023 [2]. - Net income attributable to W. P. Carey was $142.9 million, a decrease of 1.2% from $144.6 million in the prior year [8]. - AFFO for the quarter was $257.1 million, or $1.17 per diluted share, down 14.0% from $1.36 per diluted share in the previous year [9][37]. Strategic Initiatives - The company has completed a strategic plan to exit office assets, including the spin-off of 59 office properties and dispositions under the Office Sale Program totaling approximately $550 million [26]. - Active capital investments and commitments of $38.0 million are scheduled for completion in 2024 [11]. - The company expects higher AFFO in the second half of the year as it redeploys capital into new investments [2]. Capital Structure and Liquidity - The company repaid $500 million of 4.6% Senior Unsecured Notes due April 2024 and issued $400 million of 5.375% Senior Unsecured Notes due 2034 [16][29]. - As of June 30, 2024, total liquidity was $3.2 billion, including approximately $2.0 billion of available capacity under its Senior Unsecured Credit Facility and $1.1 billion in cash and cash equivalents [28]. Market Position - As of June 30, 2024, W. P. Carey’s net lease portfolio consisted of 1,291 properties, covering approximately 170 million square feet, with a weighted-average lease term of 12.0 years and an occupancy rate of 98.8% [15]. - The company has a diversified portfolio that includes 89 self-storage operating properties, four hotel operating properties, and two student housing operating properties [45].