W.P. Carey to Report Q2 Earnings: What's in the Cards for the Stock?

Core Insights - W.P. Carey (WPC) is expected to report second-quarter 2025 results on July 29, with anticipated year-over-year increases in revenues and funds from operations (FFO) per share [1][9] Financial Performance - In the last reported quarter, WPC posted a core FFO per share of $1.17, missing the Zacks Consensus Estimate of $1.20, due to revenue impacts from dispositions, although net investment activity and lease structuring provided some support [2] - Over the past four quarters, WPC's core FFO per share surpassed the Zacks Consensus Estimate twice, met once, and missed once, with an average beat of 0.01% [3] Factors Influencing Performance - The company's performance in the second quarter is likely to benefit from its focus on sale-leaseback transactions, which involve acquiring critical real estate and leasing it back to the seller on a long-term, triple-net basis, leading to higher occupancy and better risk-adjusted returns [3] - Long-term net leases with built-in rent escalations and strategic portfolio rebalancing are expected to contribute to higher revenue generation during the quarter [4] Revenue Estimates - The Zacks Consensus Estimate for WPC's lease revenues is $354.7 million, reflecting a growth of 9.44% from the prior year, while total revenues are estimated at $414.1 million, indicating a rise of 6.27% year-over-year [5] - However, tenant bankruptcies may have resulted in rent losses, negatively impacting the company's top line for the reported quarter [5][9] Analyst Sentiment - The Zacks Consensus Estimate for quarterly FFO per share has remained unchanged at $1.23 over the past two months, suggesting a 5.13% increase year-over-year [6] - Current predictions do not indicate a surprise in FFO per share for WPC this quarter, with an Earnings ESP of 0.00% and a Zacks Rank of 3 [7] Comparative Analysis - Other REITs such as American Tower (AMT) and Cousins Properties (CUZ) are highlighted as potential stocks to consider, with AMT having an Earnings ESP of +0.95% and a Zacks Rank of 2, while CUZ has an Earnings ESP of +0.36% and a Zacks Rank of 3 [8][10]