W.P. Carey Stock Up 9% in Three Months: Will It Continue to Rise?

Core Viewpoint - W.P. Carey (WPC) has demonstrated strong performance with a 9% increase in share price over three months, significantly outperforming the industry average of 0.5% [1][9] Company Performance - WPC reported second-quarter 2025 adjusted funds from operations (AFFO) per share of $1.28, exceeding the Zacks Consensus Estimate of $1.23, and reflecting a 9.4% increase from the previous year [3][9] - The company raised its full-year 2025 AFFO per share guidance, indicating positive growth expectations [3][9] Portfolio and Investment Strategy - WPC benefits from a high-quality, diversified portfolio of single-tenant net lease commercial real estate primarily in the U.S. and Northern and Western Europe, focusing on long-term sale-leaseback transactions [2][4] - The portfolio is well-diversified by tenant, industry, property type, and geography, which supports steady revenue generation [6] - More than 99% of annualized base rent comes from leases with contractual rent increases, with 50% linked to the consumer price index, ensuring stable cash flows [6] Capital Management and Growth Opportunities - In Q2 2025, WPC's total investment value reached $548.6 million, with $108.3 million committed to new capital investments scheduled for completion in 2027 [7][9] - The company sold 46 properties for gross proceeds of $364.2 million, reflecting prudent capital management practices [7][10] Financial Health - As of June 30, 2025, WPC had total liquidity of $1.7 billion, including approximately $1.3 billion available under its senior unsecured credit facility, $244.8 million in cash, and $135.2 million held at qualified intermediaries [11] - The company's pro rata net debt to adjusted EBITDA ratio was 5.8X, and it holds investment-grade ratings of BBB+ from S&P Global Ratings and Baa1 from Moody's, facilitating favorable access to the debt market [11]