4Q25 W. P. Carey Inc. Investor Presentation 50+ Years of Investing for the Long Run® Table of Contents | Overview | 3 | | --- | --- | | Real Estate Portfolio | 7 | | Balance Sheet | 20 | | Corporate Responsibility | 24 | Unless otherwise noted, all data in this presentation is as of December 31, 2025. Amounts may not sum to totals due to rounding. Overview 3 Company Highlights W. P. Carey (NYSE: WPC) is a REIT that specializes in investing in single-tenant net lease commercial real estate, primarily in the ...

Financial Data and Key Metrics Changes - NNN REIT reported a 2.7% growth in AFFO per share for 2025, reaching $3.44, and core FFO per share also increased by 6.1% year-over-year to $0.87 [10][11] - The company maintained a high occupancy rate of 98.3%, up 80 basis points from the previous quarter, aligning with its long-term average [12] - Annualized base rent increased by approximately 8% year-over-year to $928 million, driven by strong acquisition activity [12] Business Line Data and Key Metrics Changes - The company completed over $900 million in acquisitions, marking the highest annual volume in its history [3] - During the fourth quarter, NNN invested over $180 million across 55 properties at an initial cash cap rate of 7.4% [6] - The company sold 18 income-producing and 42 vacant properties in the fourth quarter, generating $82 million in proceeds [9] Market Data and Key Metrics Changes - The initial cap rates stabilized in the fourth quarter, remaining in line with the third quarter, with slight compression anticipated as the year progresses [5][6] - The company expects to fund its 2026 strategy through $210 million of retained free cash flow and $130 million of planned dispositions, maintaining leverage neutral [5] Company Strategy and Development Direction - NNN's strategy focuses on a disciplined bottom-up investment approach, aiming for mid-single-digit AFFO per share growth over the long term while aligning acquisitions and balance sheet management to support these objectives [4] - The company emphasizes proactive portfolio management to maintain high occupancy and renewal rates, with a goal of improving future performance [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a more uncertain macroeconomic environment in 2026, supported by a solid financial footing and a self-funding business model [4][5] - The company anticipates a slight increase in occupancy and a continued focus on resolving vacancies throughout 2026 [52][74] Other Important Information - NNN maintained a highly flexible balance sheet with no encumbered assets and $1.2 billion in total available liquidity [4][15] - The company announced a quarterly dividend of $0.60, representing a 3.4% year-over-year increase [15] Q&A Session Summary Question: Can you provide an update on proactive portfolio management and occupancy levels? - Management indicated that proactive portfolio management involves monitoring tenant renewals and addressing potential issues early, with an ideal occupancy slightly above 98% [20] Question: Why is the bad debt assumption set at 75 basis points? - The company explained that 75 basis points is a prudent starting point, reflecting no significant changes in the watchlist and historical performance [24] Question: What segments of clients are looking to grow more aggressively? - Management noted that auto services and convenience stores are currently the biggest opportunities for growth [33] Question: What is the expected trend for lease termination fees in 2026? - Management anticipates a return to more normalized levels of lease termination fees, estimating around $3 million to $4 million for the year [37] Question: How does the company view competition in the acquisition market? - Management stated that while competition exists, it has not seen significant changes, and it continues to rely on strong relationships to secure deals [39] Question: What is the expected trend for occupancy throughout the year? - Management expects occupancy to trend slightly higher, with ongoing efforts to resolve vacancies [52] Question: Can you discuss the anticipated cap rate compression? - Management believes slight cap rate compression is likely due to competitive pressures in the market [81]

Financial Data and Key Metrics Changes - NNN REIT reported a 2.7% growth in AFFO per share for 2025, reaching $3.44, and core FFO per share increased by 6.1% year-over-year to $0.87 [10][11] - The company maintained a high occupancy rate of 98.3%, up 80 basis points from the previous quarter, aligning with its long-term average [12] - Annualized base rent increased by nearly 8% year-over-year to $928 million, driven by strong acquisition activity [12] Business Line Data and Key Metrics Changes - The company completed over $900 million in acquisitions, marking the highest annual volume in its history [3] - During the fourth quarter, NNN invested over $180 million across 55 properties at an initial cash cap rate of 7.4% [6] - The company sold 18 income-producing and 42 vacant properties in the fourth quarter, generating $82 million in proceeds [9] Market Data and Key Metrics Changes - The initial cap rates stabilized in the fourth quarter, remaining in line with the third quarter, with slight compression anticipated as the year progresses [5][6] - The company reported that its portfolio of 3,692 freestanding single-tenant properties is performing well, with no concerns raised by tenants regarding their ability to meet rent obligations [7] Company Strategy and Development Direction - NNN's strategy focuses on a disciplined bottom-up investment approach, aiming for mid-single-digit AFFO per share growth over the long term while maintaining a top-tier payout ratio [4] - The company plans to fund its 2026 strategy through retained free cash flow and planned dispositions, maintaining leverage neutrality [5][16] - NNN aims to continue its proactive portfolio management to enhance renewal rates and address potential future issues [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a more uncertain macroeconomic environment in 2026, supported by a solid financial footing and a flexible balance sheet [4][16] - The company anticipates a slight increase in occupancy and a continued focus on resolving vacancies throughout 2026 [52][74] - Management noted that the bad debt assumption for 2026 is set at 75 basis points, reflecting a prudent approach given the current economic conditions [24][53] Other Important Information - NNN's balance sheet remains strong, with no encumbered assets and $1.2 billion in available liquidity [15] - The company announced a quarterly dividend of $0.60, representing a 3.4% year-over-year increase [15] Q&A Session Summary Question: Can you provide an update on proactive portfolio management and occupancy levels? - Management indicated that proactive portfolio management involves monitoring tenant renewals and addressing potential issues early, with an ideal occupancy slightly above 98% [20] Question: Why is the bad debt assumption set at 75 basis points? - The management explained that this figure is a conservative approach based on historical performance and current tenant stability, with no significant changes on the watchlist [24] Question: What are the current tenant rent coverage levels? - Management stated that the overall rent coverage is stable, with most tenants reporting strong financials, although it varies by industry [29][30] Question: What segments of clients are looking to grow aggressively? - Management noted that auto services and convenience stores are currently the biggest opportunities in their pipeline [33] Question: What is the expected trend for lease termination fees in 2026? - Management anticipates a return to more normalized levels of lease termination fees, consistent with historical averages [37] Question: How does the company view competition in the acquisition market? - Management acknowledged ongoing competition but emphasized their strong relationships and ability to source deals effectively without being significantly impacted by market changes [39][70] Question: What is the expected cap rate trend for 2026? - Management expects slight cap rate compression due to competitive pressures in the market [81] Question: How does the company plan to manage its debt structure? - Management highlighted the importance of matching debt duration with lease duration, allowing for flexibility in financing options [68]

Core Insights - Four Corners Property Trust, Inc. (FCPT) is recognized among the Dividend Champions, Contenders, and Challengers List, highlighting its strong dividend yield performance [1] Acquisition Activities - On January 27, FCPT acquired a GreatWater 360 Auto Care location for $2.3 million through a sale-leaseback transaction, located in a high-traffic area in Minnesota under a long-term, triple-net lease [2] - A day prior, on January 26, the company announced another acquisition of a newly built McAlister's Deli property for $2.3 million, situated in a strong retail corridor in Michigan, also under a long-term net lease [3] - In 2025, FCPT was active in acquisitions, adding 105 properties to its portfolio for approximately $318 million, primarily focusing on single-tenant, net-leased assets [4] Portfolio Growth - The third quarter saw momentum with the closure of 28 properties for around $82 million, achieving attractive initial cash yields and long lease terms [5] - The company consistently deployed capital into service-oriented and necessity-based real estate, enhancing the portfolio's stability and long-term income profile [5] Company Overview - FCPT is a real estate investment trust (REIT) that owns, acquires, and leases properties mainly in the restaurant and retail sectors, with operations organized across real estate and restaurant segments [6]

Core Viewpoint - The belief that homeownership is a primary means of saving and wealth building is challenged, with evidence suggesting that real estate may not always appreciate in value as expected, particularly when considering inflation and maintenance costs [4][5]. Real Estate Investment Insights - Homeownership is often viewed as a significant financial investment, yet economist Peter Schiff argues that this notion is misleading, as real estate remains a popular investment class despite its potential drawbacks [4]. - A 2024 Gallup survey indicates that 36% of Americans consider real estate the best investment, compared to only 22% for stocks and mutual funds [4]. Performance Comparison - Since 1990, stocks have outperformed the housing market by over 1,000%, highlighting the importance of a diversified investment portfolio rather than relying solely on home equity for retirement [5]. Costs of Homeownership - Homeowners spend an average of $6,000 annually on property repairs and maintenance, totaling approximately $180,000 over a 30-year mortgage, which can be nearly half of a home's value [3]. - Hidden costs associated with homeownership include maintenance, upgrades, insurance, and property taxes, which can make renting a more financially viable option for many [6]. Alternative Investment Options - For those seeking to invest in real estate without the burdens of ownership, platforms like Arrived allow investments in shares of vacation and rental properties with minimal initial investment [8]. - Lightstone DIRECT offers accredited investors direct access to multifamily real estate opportunities, enhancing transparency and control while reducing fees [10][11]. - The mogul platform provides fractional ownership in high-quality rental properties, ensuring monthly rental income and tax benefits without the need for significant down payments [14][15].

Financial Data and Key Metrics Changes - In Q4 2025, NOI increased by 16% sequentially and almost 60% year-over-year, driven by acquisitions and organic growth [12] - Same-property NOI grew by 3.3% for the full year and 1.5% for Q4, despite a 50 basis point headwind from uncollectible revenue [14] - The company is forecasting FFO guidance for 2026 in the range of $1.17 to $1.21 per share, representing a 12% year-over-year growth [15][16] Business Line Data and Key Metrics Changes - The company signed over 400,000 sq ft of new leases and renewals in 2025, with new lease spreads averaging 20% and renewal spreads just under 10% [6] - The lease rate remained unchanged at 96.7%, with occupancy up 20 basis points [13] Market Data and Key Metrics Changes - The total U.S. market for convenience retail assets is 950 million sq ft, significantly larger than the company's current portfolio of almost 5 million sq ft [7] - The company has built a significant network of relationships with sellers and brokers, with 27% of acquisitions being direct and off-market [8] Company Strategy and Development Direction - The company focuses on acquiring top-tier convenience retail assets, emphasizing capital efficiency and a first-mover advantage in the sector [5] - The strategy includes investing in simple, flexible buildings that align with consumer behavior, catering to daily errands rather than destination shopping [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth opportunities in the convenience sector, citing a significant addressable investment market and a strong team to support growth [11] - The company expects to generate double-digit cash flow growth for several years, driven by capital efficiency and reinvestment of retained cash flow [11] Other Important Information - The company ended the year with a leverage ratio of less than 20%, providing substantial liquidity for future acquisitions [19] - The company has a unique capital structure aligned with its business plan, having raised $600 million in debt capital since formation [18] Q&A Session Summary Question: Can you talk about the acquisition pipeline and cap rates? - Management indicated that cap rates have remained just north of 6%, with a wide range depending on various factors [24] - The company has visibility on about half of the $700 million acquisition pipeline for 2026 [25] Question: Can you discuss same-store NOI and leasing spreads? - Management noted that leasing spreads are expected to return to low 20s, and same-property NOI guidance for 2026 is a wide range of 2%-4% [28][30] Question: Are there any operating synergies from having multiple properties in single markets? - Management acknowledged some operational synergies but emphasized that the high recovery rate of the asset class limits their impact on same-store NOI [36] Question: What is the thought process on incremental equity issuance versus building out the debt ladder? - Management highlighted a broad range of options for funding, including equity issuance and private placement, while maintaining a strong liquidity position [52] Question: Are there any planned dispositions for 2026? - Management confirmed that there are no planned dispositions, as the business model focuses on long-term ownership of acquired assets [63][65]

Core Viewpoint - The current trend in the real estate market shows a significant shift towards purchasing older, smaller apartments ("老破小") in urban areas, particularly in first-tier cities, as they offer more affordable entry points for homebuyers compared to new developments in suburban areas. Group 1: Market Dynamics - In first-tier cities, nearly half of the second-hand housing transactions are for "老破小" properties, with total prices often below 3 million yuan [3] - Many buyers are opting for these older apartments due to lower total costs, making homeownership more accessible [7][9] - The perception of "老破小" has changed, with buyers feeling more secure in owning property rather than renting [9] Group 2: Advantages of "老破小" - The primary advantage of "老破小" is its location, often situated in central or mature districts, which significantly reduces commuting time [11][12] - These properties are surrounded by established amenities, providing convenience for families, especially those with elderly members or children [16][18] - Lower common area expenses and property management fees make "老破小" financially attractive, with some properties achieving a near 100% usable area ratio [21][23] - Government policies are increasingly supportive of upgrading older neighborhoods, enhancing the appeal of "老破小" through renovations and improved facilities [25][27] Group 3: Challenges of "老破小" - Common issues associated with "老破小" include parking difficulties, subpar community environments, aging infrastructure, and stricter loan terms from banks for older properties [29][31][35] - Buyers are cautioned against purchasing solely based on speculation of future redevelopment, as the focus is shifting towards renovation rather than large-scale demolition [36] Group 4: Decision-Making Factors - The choice of property should align with individual priorities, such as time, convenience, space, or potential for appreciation, emphasizing that there is no universally correct choice in real estate [38]

Core Viewpoint - The perception of real estate as a reliable investment has shifted, with many properties now seen as burdens rather than assets, leading to a potential decline in value for certain types of properties. Group 1: Types of Properties at Risk - Coastal retirement properties have seen significant price drops, with some units falling from 120 million to tens of thousands, and even being auctioned for as low as 70 thousand [10][12][17] - Commercial apartments are misleadingly marketed as affordable, but they come with high ownership costs and limited resale value due to short property rights and lack of amenities [21][23][28] - Retail shops and office buildings are facing high vacancy rates and increased operational costs, with many investors now struggling to maintain profitability [30][32][37] - Suburban large developments and cultural tourism properties are suffering from long commutes and lack of infrastructure, leading to low occupancy rates and difficulty in selling [39][41][45] - Small property rights homes are appealing due to low prices but come with significant risks, including lack of formal property rights and high potential for disputes during redevelopment [47][49][53] Group 2: Market Trends and Investor Behavior - Investors who previously viewed real estate as a long-term investment are now beginning to sell off properties at reduced prices, recognizing the changing market dynamics [5][19][28] - The era of blindly purchasing properties with the expectation of appreciation is ending, with a focus shifting towards properties that meet genuine demand [55]

Financial Data and Key Metrics Changes - The company reported Nareit FFO per share growth of 7.2% and Core FFO per share growth of 7% for 2025, with same-center NOI growth of 3.8% [5][18] - For 2026, guidance indicates mid-single digit growth rates for Nareit FFO and Core FFO per share [5][20] Business Line Data and Key Metrics Changes - The company executed 1,026 leases totaling approximately 6 million square feet in 2025, with portfolio occupancy ending the year at 97.3% leased [12][13] - Comparable renewal rent spreads were reported at 20% in Q4, while new leasing rent spreads were strong at 34.3% [13] Market Data and Key Metrics Changes - The company noted strong demand for necessity-based retail, with no signs of slowing, and high retention rates of 93% [11][12] - The company anticipates bad debt in 2026 to be in line with 2025, which was approximately 78 basis points of revenue [14][56] Company Strategy and Development Direction - The core business focuses on grocery-anchored shopping centers, with a disciplined acquisition strategy targeting an unlevered IRR of 9% for grocery-anchored acquisitions and above 10% for everyday retail centers [8][10] - The company plans to continue its development and redevelopment projects, with 20 projects under active construction and an estimated total investment of approximately $70 million [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the consumer and the strength of their portfolio, despite market concerns about consumer health and tariffs [5][9] - The company believes it can consistently deliver 3%-4% same-center NOI growth and achieve mid to high single-digit core FFO per share growth on a long-term basis [22] Other Important Information - The company has approximately $925 million of liquidity to support acquisition plans and aims to sell between $100 million and $200 million in assets in 2026 [18][20] - The company sold approximately $145 million of assets in 2025 at PECO share [20] Q&A Session Summary Question: Expectations for acquisition volume and competition for grocery-anchored assets - Management acknowledged increased competition but noted a high level of confidence in reaching acquisition targets due to a balanced market [25][26] Question: Update on the Ocala development parcel and timing - Management expressed excitement about the Ocala market, with expectations for unlevered returns above 9.5%-10% on the project [28][29] Question: Occupancy levels and leverage in renewal negotiations - Management indicated that high occupancy levels provide leverage in negotiations, with expectations for continued growth in inline stores [32][35] Question: Capital deployment and stock buybacks - Management stated that while they consider share buybacks, they believe better returns can be achieved through acquisitions and redevelopment [45][46] Question: Impact of Amazon's store closures on grocery demand - Management noted that Amazon's struggles with brick-and-mortar retail do not significantly impact their grocery demand, as traditional grocers maintain strong market positions [49][50] Question: Bad debt expectations and visibility - Management confirmed that bad debt levels are consistent with previous expectations, with no significant concerns moving into 2026 [56][57] Question: Credit rating and cost of debt - Management believes they are an underrated credit and that scale will help improve their credit rating, which could lower their cost of debt [60][61] Question: Disposition strategy and cap rates - Management outlined a strategy focused on trading out stabilized assets for higher return opportunities, with expectations for cap rates in the 5.5% to sub-5 range [68][70]

Financial Data and Key Metrics Changes - In Q4 2025, Ladder Capital generated distributable earnings of $21.4 million or $0.17 per share, which adjusted for a $5 million realized loan loss, resulted in earnings of $26.4 million or $0.21 per share [3][13] - For the full year 2025, distributable earnings totaled $109.9 million, achieving a return on equity of 7.1% [3][4] - The adjusted leverage ratio was 2.0 times stable book value, with liquidity maintained at $608 million, including $570 million of undrawn capacity on the unsecured revolver [4][15] Business Line Data and Key Metrics Changes - In 2025, Ladder originated $1.4 billion in new loans, the highest annual volume since 2021, with Q4 alone contributing over $870 million in new investments [5][6] - The loan portfolio totaled $2.2 billion at year-end, representing 42% of total assets, with a weighted average yield of 7.8% [18][20] - The securities portfolio reached $2.1 billion, with 99% rated investment grade and 97% rated AAA, indicating high credit quality [20] Market Data and Key Metrics Changes - The company reported a decline in office loan exposure from 14% to 11% of total assets by year-end, while selectively pursuing new investments in the office sector [6][10] - The real estate portfolio generated $14.8 million of net operating income in Q4 and $57.3 million for the full year, supported by active leasing and asset management [9][20] Company Strategy and Development Direction - Ladder Capital aims to drive growth by increasing loan originations to enhance returns and support dividend growth while maintaining balance sheet discipline [12][22] - The company plans to capitalize on opportunities in the commercial real estate market, with a focus on stable income-producing properties, primarily multifamily and industrial [6][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating potential market volatility, emphasizing that the current environment presents opportunities rather than challenges [28][30] - The company anticipates achieving a return on equity of 9-10% within the current capital structure, with plans to grow the loan portfolio to over $6 billion by year-end [31][34] Other Important Information - Ladder Capital's inaugural $500 million investment-grade unsecured bond was issued at a fixed rate of 5.5%, with pricing tightening significantly since issuance [9][14] - The company repurchased $10.2 million of common stock in 2025, reflecting confidence in its financial position and commitment to shareholder value [17] Q&A Session Summary Question: How is Ladder planning to address potential volatility in the market? - Management indicated no significant changes in strategy due to volatility, viewing it as an opportunity for stable dividend investments [28][30] Question: What is the achievable ROE and loan portfolio size by year-end? - Management expects an ROE of 9-10% and plans to grow the loan portfolio to over $6 billion by year-end [31][34] Question: How does Ladder view competition from regional banks? - Management noted that while banks are becoming more competitive, they are primarily focused on construction loans, leaving opportunities for Ladder in refinancing and bridge loans [66][69]