W. P. Carey Hits a Record $2.1B in Investments: What Comes Next?

Core Insights - W. P. Carey Inc. achieved a record full-year investment volume of $2.1 billion for 2025, demonstrating strong capital deployment in net-lease real estate despite a challenging yield environment [1][7] Investment Strategy - The company successfully funded new investments through the sale of 63 self-storage operating properties and other assets for $1.5 billion, generating a spread of approximately 150 basis points compared to the cap rates of reinvested proceeds [2] - A significant portion of new investments focused on single-tenant warehouse and industrial properties, which accounted for about 68% of the 2025 volume, while retail represented roughly 22% [3] Geographic Diversification - Nearly 69% of the 2025 investments were made in the United States, with 26% in Europe, indicating a balanced approach across different markets [3] Capital Markets Activity - The company sold 6.3 million shares under its ATM program in 2025, generating gross proceeds of approximately $423 million [4] - Tenant credit losses were contained at around $6 million for the year, which was below prior expectations, indicating resilient portfolio performance [4] Future Outlook - W. P. Carey's record investment volume and strategic asset recycling position the company well for continued growth in 2026, focusing on core industrial and warehouse net-lease properties [5] - The company has substantial equity available and further planned dispositions, suggesting it is poised to sustain investment momentum and potentially enhance shareholder returns [5]