W. P. Carey Announces First Quarter 2025 Financial Results
W. P. Carey reported strong Q1 2025 financial results with net income of $125.8 million and AFFO of $1.17 per share. The company completed $448.6 million in investments year-to-date, including $275.1 million in Q1.
Key highlights:
- Reaffirmed 2025 AFFO guidance of $4.82-$4.92 per share
- Increased quarterly dividend to $0.890 per share
- Achieved 2.4% contractual same-store rent growth
- Portfolio includes 1,614 net lease properties across 177 million square feet
- Maintained strong 98.3% occupancy rate
The company strengthened its balance sheet by repaying $450 million in Senior Notes and refinancing a €500 million term loan. With $2.0 billion in total liquidity and a well-diversified portfolio of industrial, warehouse, and retail properties, W. P. Carey remains positioned for continued growth despite market uncertainty.
W. P. Carey ha riportato solidi risultati finanziari nel primo trimestre del 2025, con un utile netto di 125,8 milioni di dollari e un AFFO di 1,17 dollari per azione. La società ha completato investimenti per 448,6 milioni di dollari da inizio anno, di cui 275,1 milioni nel primo trimestre.
Punti salienti:
- Confermata la guidance AFFO 2025 tra 4,82 e 4,92 dollari per azione
- Aumentato il dividendo trimestrale a 0,890 dollari per azione
- Crescita contrattuale degli affitti a parità di negozio del 2,4%
- Il portafoglio comprende 1.614 proprietà con contratto di locazione netto per un totale di 177 milioni di piedi quadrati
- Mantenuto un tasso di occupazione elevato del 98,3%
La società ha rafforzato il proprio bilancio rimborsando 450 milioni di dollari di Senior Notes e rifinanziando un prestito a termine da 500 milioni di euro. Con 2,0 miliardi di dollari di liquidità totale e un portafoglio ben diversificato di immobili industriali, magazzini e retail, W. P. Carey rimane ben posizionata per una crescita continua nonostante l'incertezza del mercato.
W. P. Carey reportó sólidos resultados financieros en el primer trimestre de 2025, con un ingreso neto de 125,8 millones de dólares y un AFFO de 1,17 dólares por acción. La compañía completó inversiones por 448,6 millones de dólares en lo que va del año, incluyendo 275,1 millones en el primer trimestre.
Puntos clave:
- Reafirmó la guía de AFFO 2025 de 4,82 a 4,92 dólares por acción
- Aumentó el dividendo trimestral a 0,890 dólares por acción
- Logró un crecimiento contractual del alquiler en tiendas comparables del 2,4%
- El portafolio incluye 1.614 propiedades con arrendamiento neto por un total de 177 millones de pies cuadrados
- Mantuvo una sólida tasa de ocupación del 98,3%
La compañía fortaleció su balance al reembolsar 450 millones de dólares en Senior Notes y refinanciar un préstamo a plazo de 500 millones de euros. Con 2.000 millones de dólares en liquidez total y un portafolio bien diversificado de propiedades industriales, almacenes y comerciales, W. P. Carey sigue posicionada para un crecimiento sostenido a pesar de la incertidumbre del mercado.
W. P. Carey는 2025년 1분기에 순이익 1억 2,580만 달러와 주당 AFFO 1.17달러라는 강력한 재무 성과를 보고했습니다. 회사는 올해 들어 총 4억 4,860만 달러의 투자를 완료했으며, 이 중 1분기에는 2억 7,510만 달러를 투자했습니다.
주요 내용:
- 2025년 AFFO 가이던스를 주당 4.82~4.92달러로 재확인
- 분기 배당금을 주당 0.890달러로 인상
- 계약상 동일 점포 임대료 2.4% 성장 달성
- 포트폴리오에는 총 1,614개의 순임대 부동산이 1억 7,700만 평방피트에 걸쳐 포함
- 강력한 98.3% 점유율 유지
회사는 4억 5,000만 달러의 선순위 채권을 상환하고 5억 유로의 기간 대출을 재융자하여 재무구조를 강화했습니다. 총 20억 달러의 유동성과 산업용, 창고, 소매 부동산으로 잘 분산된 포트폴리오를 보유한 W. P. Carey는 시장 불확실성에도 불구하고 지속적인 성장을 위한 좋은 위치를 유지하고 있습니다.
W. P. Carey a annoncé de solides résultats financiers pour le premier trimestre 2025, avec un bénéfice net de 125,8 millions de dollars et un AFFO de 1,17 dollar par action. La société a réalisé des investissements totalisant 448,6 millions de dollars depuis le début de l'année, dont 275,1 millions au premier trimestre.
Points clés :
- Confirmation des prévisions AFFO 2025 entre 4,82 et 4,92 dollars par action
- Augmentation du dividende trimestriel à 0,890 dollar par action
- Croissance contractuelle des loyers à périmètre constant de 2,4 %
- Portefeuille comprenant 1 614 propriétés en location nette totalisant 177 millions de pieds carrés
- Taux d’occupation solide de 98,3 % maintenu
La société a renforcé son bilan en remboursant 450 millions de dollars de Senior Notes et en refinançant un prêt à terme de 500 millions d’euros. Avec une liquidité totale de 2,0 milliards de dollars et un portefeuille bien diversifié de biens industriels, d’entrepôts et de commerces, W. P. Carey reste bien positionnée pour une croissance continue malgré l’incertitude du marché.
W. P. Carey meldete starke Finanzergebnisse für das erste Quartal 2025 mit einem Nettogewinn von 125,8 Millionen US-Dollar und einem AFFO von 1,17 US-Dollar pro Aktie. Das Unternehmen tätigte bisher Investitionen in Höhe von 448,6 Millionen US-Dollar, davon 275,1 Millionen im ersten Quartal.
Wichtige Highlights:
- Bestätigung der AFFO-Prognose für 2025 von 4,82 bis 4,92 US-Dollar pro Aktie
- Erhöhung der Quartalsdividende auf 0,890 US-Dollar pro Aktie
- Erzieltes vertragliches Mietwachstum von 2,4 % bei vergleichbaren Objekten
- Portfolio umfasst 1.614 Netto-Mietobjekte auf 177 Millionen Quadratfuß
- Starke Auslastung von 98,3 % beibehalten
Das Unternehmen stärkte seine Bilanz durch die Rückzahlung von 450 Millionen US-Dollar an Senior Notes und die Refinanzierung eines Terminkredits über 500 Millionen Euro. Mit einer Gesamtlquidität von 2,0 Milliarden US-Dollar und einem gut diversifizierten Portfolio aus Industrie-, Lager- und Einzelhandelsimmobilien ist W. P. Carey trotz Marktunsicherheiten weiterhin gut für weiteres Wachstum positioniert.
- Investment volume of $448.6M completed YTD, with $275.1M in Q1 2025
- High portfolio occupancy rate of 98.3% across 1,614 properties
- Contractual same-store rent growth of 2.4% year-over-year
- Quarterly dividend increased by 2.9% to $0.89 per share
- Strong liquidity position of $2.0B, including $1.8B available credit facility
- Successfully refinanced €500M term loan, extending maturity to 2029
- AFFO per share increased 2.6% YoY to $1.17
- Net income decreased 21.0% YoY to $125.8M in Q1 2025
- Higher losses from foreign debt remeasurement
- Increased non-cash allowance for credit loss on finance leases
- Operating property revenues decreased due to property sales
- Income from finance leases and loans receivable decreased
Insights
W.P. Carey shows operational strength with 2.6% AFFO growth, 98.3% occupancy, and dividend increase despite market uncertainties.
W.P. Carey's Q1 2025 results demonstrate solid operational performance despite mixed headline numbers. The company posted $1.17 AFFO per share, representing a
The company's portfolio fundamentals remain exceptionally strong with
Investment activity shows momentum with
The
The balance sheet remains well-managed with the retirement of
The reaffirmed 2025 AFFO guidance of
Financial Highlights
2025 First Quarter | |
Net income attributable to W. P. Carey (millions) | |
Diluted earnings per share | |
AFFO (millions) | |
AFFO per diluted share |
- Reaffirming 2025 AFFO guidance of between
and$4.82 per diluted share, based on anticipated full year investment volume of between$4.92 and$1.0 billion $1.5 billion - First quarter cash dividend of
per share, equivalent to an annualized dividend rate of$0.89 0 per share$3.56
Real Estate Portfolio
- Investment volume of
completed year to date, including$448.6 million during the first quarter and$275.1 million subsequent to quarter end$173.5 million - Active capital investments and commitments of
scheduled to be completed in 2025$117.1 million - Gross disposition proceeds of
during the first quarter$129.8 million - Contractual same-store rent growth of
2.4%
Balance Sheet and Capitalization
- Repaid
of$450 million 4.0% Senior Unsecured Notes due February 2025 - Refinanced existing
€500 million term loan, extending its maturity three years to 2029, and executed an interest rate swap fixing the interest rate at2.80% per annum
MANAGEMENT COMMENTARY
"We've had a strong start to the year, closing approximately
"We're reaffirming both our AFFO and investment volume guidance ranges and believe there's potential to raise as we continue to gain better visibility into transaction activity, tariffs and how the overall economic environment progresses throughout the year."
QUARTERLY FINANCIAL RESULTS
Revenues
- Revenues, including reimbursable costs, for the 2025 first quarter totaled
, up$409.9 million 5.2% from for the 2024 first quarter.$389.8 million - Lease revenues increased primarily due to net investment activity and the impact of certain lease restructurings.
- Income from finance leases and loans receivable decreased primarily as a result of the disposition of the U-Haul portfolio during the 2024 first quarter.
- Operating property revenues decreased primarily as a result of the sale of one hotel operating property during the 2024 second quarter and the conversion of certain self-storage operating properties to net leases during the 2024 third quarter.
- Lease revenues increased primarily due to net investment activity and the impact of certain lease restructurings.
Net Income Attributable to W. P. Carey
- Net income attributable to W. P. Carey for the 2025 first quarter was
, down$125.8 million 21.0% from for the 2024 first quarter, due primarily to higher losses from remeasurement of foreign debt and a higher non-cash allowance for credit loss on finance leases and loans receivable, partly offset by higher gain on sale of real estate.$159.2 million
Adjusted Funds from Operations (AFFO)
- AFFO for the 2025 first quarter was
per diluted share, up$1.17 2.6% from per diluted share for the 2024 first quarter, primarily reflecting the impact of net investment activity, rent escalations and leasing activity, partly offset by lower interest income on cash deposits.$1.14
Note: Further information concerning AFFO, which is a non-GAAP supplemental performance metric, is presented in the accompanying tables and related notes.
Dividend
- On March 13, 2025, the Company reported that its Board of Directors increased its quarterly cash dividend to
per share, equivalent to an annualized dividend rate of$0.89 0 per share, representing a$3.56 2.9% increase compared to the 2024 first quarter. The dividend was paid on April 15, 2025 to shareholders of record as of March 31, 2025.
AFFO GUIDANCE
- For the 2025 full year, the Company reaffirms its expectation that it will report AFFO of between
and$4.82 per diluted share, based on the following key assumptions, which are unchanged:$4.92
(i) investment volume of between
(ii) disposition volume of between
(iii) total general and administrative expenses of between
(iv) property expenses, excluding reimbursable tenant costs of between
(v) tax expense (on an AFFO basis) of between
Note: The Company does not provide guidance on net income. The Company only provides guidance on AFFO and does not provide a reconciliation of this forward-looking non-GAAP guidance to net income due to the inherent difficulty in quantifying certain items necessary to provide such reconciliation as a result of their unknown effect, timing and potential significance. Examples of such items include impairments of assets, gains and losses from sales of assets, and depreciation and amortization from new acquisitions.
REAL ESTATE
Investments
- Year to date, the Company completed investments totaling
, including$448.6 million during the 2025 first quarter and$275.1 million subsequent to quarter end.$173.5 million - During the 2025 first quarter, the Company committed to fund new capital investments and commitments totaling
, which are scheduled to be completed in 2025 and 2026.$50.8 million - The Company currently has eight capital investments and commitments totaling
scheduled to be completed during 2025.$117.1 million
Dispositions
- During the 2025 first quarter, the Company disposed of nine properties for gross proceeds totaling
.$129.8 million
Contractual Same-Store Rent Growth
- As of March 31, 2025, contractual same store rent growth was
2.4% year over year, on a constant currency basis.
Composition
- As of March 31, 2025, the Company's net lease portfolio consisted of 1,614 properties, comprising 177 million square feet leased to 366 tenants, with a weighted-average lease term of 12.3 years and an occupancy rate of
98.3% . In addition, the Company owned 78 self-storage operating properties, four hotel operating properties and two student housing operating properties, totaling approximately 6.4 million square feet.
BALANCE SHEET AND CAPITALIZATION
Liquidity
- As of March 31, 2025, the Company had total liquidity of
, including approximately$2.0 billion of available capacity under its Senior Unsecured Credit Facility (net of amounts reserved for standby letters of credit) and$1.8 billion of cash and cash equivalents.$187.8 million
Unsecured Term Loan
- As previously announced, on March 31, 2025, the Company refinanced its existing
€500 million term loan and extended its maturity by three years to 2029. The term loan includes an option to extend up to an additional year at the Company's discretion, subject to the satisfaction of certain customary conditions. - In conjunction with the term loan, the Company executed a
€500 million variable-to-fixed interest rate swap fixing one-month EURIBOR at2.00% and resulting in an all-in annual rate of2.80% .
Senior Unsecured Notes
- As previously announced, on February 3, 2025, the Company repaid
of$450 million 4.0% Senior Unsecured Notes at maturity.
* * * * *
Supplemental Information
The Company has provided supplemental unaudited financial and operating information regarding the 2025 first quarter and certain prior quarters, including a description of non-GAAP financial measures and reconciliations to GAAP measures, in a Current Report on Form 8-K filed with the Securities and Exchange Commission (SEC) on April 29, 2025, and made available on the Company's website at ir.wpcarey.com/investor-relations.
* * * * *
Live Conference Call and Audio Webcast Scheduled for Wednesday, April 30, 2025 at 11:00 a.m. Eastern Time
Please dial in at least 10 minutes prior to the start time.
Date/Time: Wednesday, April 30, 2025 at 11:00 a.m. Eastern Time
Call-in Number: 1 (877) 465-1289 (
Live Audio Webcast and Replay: www.wpcarey.com/earnings
* * * * *
W. P. Carey Inc.
W. P. Carey ranks among the largest net lease REITs with a well-diversified portfolio of high-quality, operationally critical commercial real estate, which includes 1,614 net lease properties covering approximately 177 million square feet and a portfolio of 78 self-storage operating properties as of March 31, 2025. With offices in
* * * * *
Cautionary Statement Concerning Forward-Looking Statements
Certain of the matters discussed in this communication constitute forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, both as amended by the Private Securities Litigation Reform Act of 1995. The forward-looking statements include, among other things, statements regarding the intent, belief or expectations of W. P. Carey and can be identified by the use of words such as "may," "will," "should," "would," "will be," "goals," "believe," "project," "expect," "anticipate," "intend," "estimate" "opportunities," "possibility," "strategy," "maintain" or the negative version of these words and other comparable terms. These forward-looking statements include, but are not limited to, statements made by Mr. Jason Fox regarding deal volume, sources of capital and expectations for future growth. These statements are based on the current expectations of our management, and it is important to note that our actual results could be materially different from those projected in such forward-looking statements. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Other unknown or unpredictable risks or uncertainties, like the risks related to fluctuating interest rates, the impact of inflation and tariffs on our tenants and us, the effects of pandemics and global outbreaks of contagious diseases, and domestic or geopolitical crises, such as terrorism, military conflict, war or the perception that hostilities may be imminent, political instability or civil unrest, or other conflict, and those additional risk factors discussed in reports that we have filed with the SEC, could also have material adverse effects on our future results, performance or achievements. Discussions of some of these other important factors and assumptions are contained in W. P. Carey's filings with the SEC and are available at the SEC's website at http://www.sec.gov, including Part I, Item 1A. Risk Factors in W. P. Carey's Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this communication, unless noted otherwise. Except as required under the federal securities laws and the rules and regulations of the SEC, W. P. Carey does not undertake any obligation to release publicly any revisions to the forward-looking statements to reflect events or circumstances after the date of this communication or to reflect the occurrence of unanticipated events.
Institutional Investors:
Peter Sands
1 (212) 492-1110
institutionalir@wpcarey.com
Individual Investors:
W. P. Carey Inc.
1 (212) 492-8920
ir@wpcarey.com
Press Contact:
Anna McGrath
1 (212) 492-1166
amcgrath@wpcarey.com
* * * * *
W. P. CAREY INC. Consolidated Balance Sheets (Unaudited) (in thousands, except share and per share amounts)
| |||
March 31, 2025 | December 31, 2024 | ||
Assets | |||
Investments in real estate: | |||
Land, buildings and improvements — net lease and other | $ 13,114,194 | $ 12,842,869 | |
Land, buildings and improvements — operating properties | 1,202,920 | 1,198,676 | |
Net investments in finance leases and loans receivable | 866,949 | 798,259 | |
In-place lease intangible assets and other | 2,338,805 | 2,297,572 | |
Above-market rent intangible assets | 671,887 | 665,495 | |
Investments in real estate | 18,194,755 | 17,802,871 | |
Accumulated depreciation and amortization (a) | (3,367,408) | (3,222,396) | |
Assets held for sale, net | 12,139 | — | |
Net investments in real estate | 14,839,486 | 14,580,475 | |
Equity method investments | 304,838 | 301,115 | |
Cash and cash equivalents | 187,809 | 640,373 | |
Other assets, net | 1,000,675 | 1,045,218 | |
Goodwill | 974,497 | 967,843 | |
Total assets | $ 17,307,305 | $ 17,535,024 | |
Liabilities and Equity | |||
Debt: | |||
Senior unsecured notes, net | $ 6,211,918 | $ 6,505,907 | |
Unsecured term loans, net | 1,113,910 | 1,075,826 | |
Unsecured revolving credit facility | 205,129 | 55,448 | |
Non-recourse mortgages, net | 335,345 | 401,821 | |
Debt, net | 7,866,302 | 8,039,002 | |
Accounts payable, accrued expenses and other liabilities | 605,618 | 596,994 | |
Below-market rent and other intangible liabilities, net | 114,414 | 119,831 | |
Deferred income taxes | 154,888 | 147,461 | |
Dividends payable | 199,160 | 197,612 | |
Total liabilities | 8,940,382 | 9,100,900 | |
Preferred stock, | — | — | |
Common stock, | 219 | 219 | |
Additional paid-in capital | 11,792,420 | 11,805,179 | |
Distributions in excess of accumulated earnings | (3,276,497) | (3,203,974) | |
Deferred compensation obligation | 96,952 | 78,503 | |
Accumulated other comprehensive loss | (250,731) | (250,232) | |
Total stockholders' equity | 8,362,363 | 8,429,695 | |
Noncontrolling interests | 4,560 | 4,429 | |
Total equity | 8,366,923 | 8,434,124 | |
Total liabilities and equity | $ 17,307,305 | $ 17,535,024 |
________
(a) | Includes |
W. P. CAREY INC. Quarterly Consolidated Statements of Income (Unaudited) (in thousands, except share and per share amounts)
| |||||
Three Months Ended | |||||
March 31, 2025 | December 31, 2024 | March 31, 2024 | |||
Revenues | |||||
Real Estate: | |||||
Lease revenues | $ 353,768 | $ 351,394 | $ 322,251 | ||
Income from finance leases and loans receivable | 17,458 | 16,796 | 25,793 | ||
Operating property revenues | 33,094 | 34,132 | 36,643 | ||
Other lease-related income | 3,121 | 1,329 | 2,155 | ||
407,441 | 403,651 | 386,842 | |||
Investment Management: | |||||
Asset management revenue | 1,350 | 1,461 | 1,893 | ||
Other advisory income and reimbursements | 1,067 | 1,053 | 1,063 | ||
2,417 | 2,514 | 2,956 | |||
409,858 | 406,165 | 389,798 | |||
Operating Expenses | |||||
Depreciation and amortization | 129,607 | 115,770 | 118,768 | ||
General and administrative | 26,967 | 24,254 | 27,868 | ||
Reimbursable tenant costs | 17,092 | 15,661 | 12,973 | ||
Operating property expenses | 16,544 | 16,586 | 17,950 | ||
Property expenses, excluding reimbursable tenant costs | 11,706 | 12,580 | 12,173 | ||
Stock-based compensation expense | 9,148 | 9,667 | 8,856 | ||
Impairment charges — real estate | 6,854 | 27,843 | — | ||
Merger and other expenses | 556 | (484) | 4,452 | ||
218,474 | 221,877 | 203,040 | |||
Other Income and Expenses | |||||
Interest expense | (68,804) | (70,883) | (68,651) | ||
Gain on sale of real estate, net | 43,777 | 4,480 | 15,445 | ||
Other gains and (losses) (a) | (42,197) | (77,224) | 13,839 | ||
Non-operating income (b) | 7,910 | 13,847 | 15,505 | ||
Earnings from equity method investments | 5,378 | 302 | 4,864 | ||
(53,936) | (129,478) | (18,998) | |||
Income before income taxes | 137,448 | 54,810 | 167,760 | ||
Provision for income taxes | (11,632) | (7,772) | (8,674) | ||
Net Income | 125,816 | 47,038 | 159,086 | ||
Net loss (income) attributable to noncontrolling interests | 8 | (15) | 137 | ||
Net Income Attributable to W. P. Carey | $ 125,824 | $ 47,023 | $ 159,223 | ||
Basic Earnings Per Share | $ 0.57 | $ 0.21 | $ 0.72 | ||
Diluted Earnings Per Share | $ 0.57 | $ 0.21 | $ 0.72 | ||
Weighted-Average Shares Outstanding | |||||
Basic | 220,401,156 | 220,223,239 | 220,031,597 | ||
Diluted | 220,720,310 | 220,577,900 | 220,129,870 | ||
Dividends Declared Per Share | $ 0.890 | $ 0.880 | $ 0.865 |
__________
(a) | Amount for the three months ended March 31, 2025 is primarily comprised of net losses on foreign currency exchange rate movements of |
(b) | Amount for the three months ended March 31, 2025 is comprised of a dividend of |
W. P. CAREY INC. Quarterly Reconciliation of Net Income to Adjusted Funds from Operations (AFFO) (Unaudited) (in thousands, except share and per share amounts)
| |||||
Three Months Ended | |||||
March 31, 2025 | December 31, 2024 | March 31, 2024 | |||
Net income attributable to W. P. Carey | $ 125,824 | $ 47,023 | $ 159,223 | ||
Adjustments: | |||||
Depreciation and amortization of real property | 128,937 | 115,107 | 118,113 | ||
Gain on sale of real estate, net | (43,777) | (4,480) | (15,445) | ||
Impairment charges — real estate | 6,854 | 27,843 | — | ||
Proportionate share of adjustments to earnings from equity method investments (a) | 1,643 | 2,879 | 2,949 | ||
Proportionate share of adjustments for noncontrolling interests (b) | (78) | (79) | (103) | ||
Total adjustments | 93,579 | 141,270 | 105,514 | ||
FFO (as defined by NAREIT) Attributable to W. P. Carey (c) | 219,403 | 188,293 | 264,737 | ||
Adjustments: | |||||
Other (gains) and losses (d) | 42,197 | 77,224 | (13,839) | ||
Straight-line and other leasing and financing adjustments | (19,033) | (24,849) | (19,553) | ||
Stock-based compensation | 9,148 | 9,667 | 8,856 | ||
Amortization of deferred financing costs | 4,782 | 4,851 | 4,588 | ||
Above- and below-market rent intangible lease amortization, net | 1,123 | 10,047 | 4,068 | ||
Tax (benefit) expense – deferred and other | (782) | 96 | (1,373) | ||
Other amortization and non-cash items | 560 | 557 | 579 | ||
Merger and other expenses | 556 | (484) | 4,452 | ||
Proportionate share of adjustments to earnings from equity method investments (a) | (86) | 2,266 | (519) | ||
Proportionate share of adjustments for noncontrolling interests (b) | (48) | (62) | (104) | ||
Total adjustments | 38,417 | 79,313 | (12,845) | ||
AFFO Attributable to W. P. Carey (c) | $ 257,820 | $ 267,606 | $ 251,892 | ||
Summary | |||||
FFO (as defined by NAREIT) attributable to W. P. Carey (c) | $ 219,403 | $ 188,293 | $ 264,737 | ||
FFO (as defined by NAREIT) attributable to W. P. Carey per diluted share (c) | $ 0.99 | $ 0.85 | $ 1.20 | ||
AFFO attributable to W. P. Carey (c) | $ 257,820 | $ 267,606 | $ 251,892 | ||
AFFO attributable to W. P. Carey per diluted share (c) | $ 1.17 | $ 1.21 | $ 1.14 | ||
Diluted weighted-average shares outstanding | 220,720,310 | 220,577,900 | 220,129,870 |
__________
(a) | Equity income, including amounts that are not typically recognized for FFO and AFFO, is recognized within Earnings from equity method investments on the consolidated statements of income. This represents adjustments to equity income to reflect FFO and AFFO on a pro rata basis. |
(b) | Adjustments disclosed elsewhere in this reconciliation are on a consolidated basis. This adjustment reflects our FFO or AFFO on a pro rata basis. |
(c) | FFO and AFFO are non-GAAP measures. See below for a description of FFO and AFFO. |
(d) | Amount for the three months ended March 31, 2025 is primarily comprised of net losses on foreign currency exchange rate movements of |
Non-GAAP Financial Disclosure
Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO)
Due to certain unique operating characteristics of real estate companies, as discussed below, the National Association of Real Estate Investment Trusts (NAREIT), an industry trade group, has promulgated a non-GAAP measure known as FFO, which we believe to be an appropriate supplemental measure, when used in addition to and in conjunction with results presented in accordance with GAAP, to reflect the operating performance of a REIT. The use of FFO is recommended by the REIT industry as a supplemental non-GAAP measure. FFO is not equivalent to, nor a substitute for, net income or loss as determined under GAAP.
We define FFO, a non-GAAP measure, consistent with the standards established by the White Paper on FFO approved by the Board of Governors of NAREIT, as restated in December 2018. The White Paper defines FFO as net income or loss computed in accordance with GAAP, excluding gains or losses from the sale of certain real estate, impairment charges on real estate or other assets incidental to the company's main business, gains or losses on changes in control of interests in real estate and depreciation and amortization from real estate assets; and after adjustments for unconsolidated partnerships and jointly owned investments. Adjustments for unconsolidated partnerships and jointly owned investments are calculated to reflect FFO on the same basis.
We also modify the NAREIT computation of FFO to adjust GAAP net income for certain non-cash charges, such as amortization of real estate-related intangibles, deferred income tax benefits and expenses, straight-line rent and related reserves, other non-cash rent adjustments, non-cash allowance for credit losses on loans receivable and finance leases, stock-based compensation, non-cash environmental accretion expense, amortization of discounts and premiums on debt and amortization of deferred financing costs. Our assessment of our operations is focused on long-term sustainability and not on such non-cash items, which may cause short-term fluctuations in net income but have no impact on cash flows. Additionally, we exclude non-core income and expenses, such as gains or losses from extinguishment of debt, gains or losses on the mark-to-market fair value of equity securities, merger and acquisition expenses, and spin-off expenses. We also exclude realized and unrealized gains/losses on foreign currency exchange rate movements (other than those realized on the settlement of foreign currency derivatives), which are not considered fundamental attributes of our business plan and do not affect our overall long-term operating performance. We refer to our modified definition of FFO as AFFO. We exclude these items from GAAP net income to arrive at AFFO as they are not the primary drivers in our decision-making process and excluding these items provides investors a view of our portfolio performance over time and makes it more comparable to other REITs. AFFO also reflects adjustments for unconsolidated partnerships and jointly owned investments. We use AFFO as one measure of our operating performance when we formulate corporate goals, evaluate the effectiveness of our strategies and determine executive compensation.
We believe that AFFO is a useful supplemental measure for investors to consider as we believe it will help them to better assess the sustainability of our operating performance without the potentially distorting impact of these short-term fluctuations. However, there are limits on the usefulness of AFFO to investors. For example, impairment charges and unrealized foreign currency exchange rate losses that we exclude may become actual realized losses upon the ultimate disposition of the properties in the form of lower cash proceeds or other considerations. We use our FFO and AFFO measures as supplemental financial measures of operating performance. We do not use our FFO and AFFO measures as, nor should they be considered to be, alternatives to net income computed under GAAP, or as alternatives to net cash provided by operating activities computed under GAAP, or as indicators of our ability to fund our cash needs.
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SOURCE W. P. Carey Inc.