[10-Q] W.P. Carey Inc. (REIT) Quarterly Earnings Report
Filing Impact
Filing Sentiment
Form Type
10-Q
Rhea-AI Filing Summary
W. P. Carey (WPC) Q2 2025 10-Q highlights:
- Revenue growth: Q2 total revenue rose 10.6 % YoY to $430.8 m; 1H revenue up 7.9 % to $840.6 m.
- Earnings pressure: Q2 net income attributable to WPC fell 64 % YoY to $51.2 m (EPS $0.23 vs $0.65) as $148.8 m of “Other losses” and higher interest expense offset topline gains. 1H EPS declined to $0.80 (-41 %).
- Portfolio expansion: 81 property acquisitions closed YTD for $542.7 m; portfolio now 1,600 net-lease assets (178 m sq ft) plus 72 operating properties. Occupancy 98.2 % with 12.1-year WA lease term.
- Dispositions & gains: Sold 17 net-lease assets and 10 self-storage assets; realized $52.8 m Q2 gain on sale ($96.6 m YTD).
- Balance sheet: Real estate investments up to $15.34 bn (+5.2 % YTD). Debt increased to $8.64 bn (net revolver balance $660.9 m) while cash fell to $244.8 m (-62 % YTD). Net debt/total assets ≈48 %.
- Capital activity: Drew $1.47 bn on revolver, repaid $865 m; repaid $450 m senior notes; issued no new notes. Declared quarterly dividend of $0.90/sh (annualized $3.60, 7.4 % yield*).
- Cash flow: Operating cash flow $677.2 m vs $1.26 bn prior-year period; decline driven by lower realized gains and higher working-capital uses.
- Equity: Book value slipped 2.5 % to $8.21 bn; AOCI loss deepened to $-264.8 m on derivative marks & FX.
*Yield based on 7/25/25 close.
W. P. Carey (WPC) evidenze del 10-Q del secondo trimestre 2025:
- Crescita dei ricavi: i ricavi totali del secondo trimestre sono aumentati del 10,6% su base annua, raggiungendo 430,8 milioni di dollari; i ricavi del primo semestre sono cresciuti del 7,9%, arrivando a 840,6 milioni di dollari.
- Pressione sugli utili: l'utile netto attribuibile a WPC nel secondo trimestre è diminuito del 64% su base annua, attestandosi a 51,2 milioni di dollari (EPS $0,23 contro $0,65), a causa di perdite "altre" per 148,8 milioni di dollari e maggiori oneri finanziari che hanno compensato i guadagni dei ricavi. L'EPS del primo semestre è sceso a $0,80 (-41%).
- Espansione del portafoglio: 81 acquisizioni di immobili concluse da inizio anno per un valore di 542,7 milioni di dollari; il portafoglio conta ora 1.600 asset net-lease (178 milioni di piedi quadrati) oltre a 72 proprietà operative. Tasso di occupazione al 98,2% con durata media ponderata dei contratti di locazione di 12,1 anni.
- Disposizioni e guadagni: venduti 17 asset net-lease e 10 immobili self-storage; realizzato un guadagno di 52,8 milioni di dollari nel secondo trimestre ($96,6 milioni da inizio anno).
- Bilancio: investimenti immobiliari saliti a 15,34 miliardi di dollari (+5,2% da inizio anno). Il debito è aumentato a 8,64 miliardi di dollari (saldo netto del revolver 660,9 milioni), mentre la liquidità è scesa a 244,8 milioni (-62% da inizio anno). Rapporto debito netto/attività totali circa 48%.
- Attività di capitale: prelevati 1,47 miliardi di dollari sul revolver, rimborsati 865 milioni; rimborsati 450 milioni di senior notes; nessuna nuova emissione di note. Dividendo trimestrale dichiarato di 0,90 dollari per azione (3,60 dollari annualizzati, rendimento 7,4%*).
- Flusso di cassa: flusso di cassa operativo di 677,2 milioni di dollari rispetto a 1,26 miliardi nello stesso periodo dell’anno precedente; il calo è dovuto a minori guadagni realizzati e maggiori utilizzi di capitale circolante.
- Patrimonio netto: valore contabile diminuito del 2,5% a 8,21 miliardi di dollari; perdita su altri utili complessivi (AOCI) aumentata a -264,8 milioni per variazioni su derivati e cambi.
*Rendimento calcolato sulla chiusura del 25 luglio 2025.
Aspectos destacados del 10-Q del segundo trimestre de 2025 de W. P. Carey (WPC):
- Crecimiento de ingresos: Los ingresos totales del segundo trimestre aumentaron un 10,6 % interanual, alcanzando 430,8 millones de dólares; los ingresos del primer semestre crecieron un 7,9 % hasta 840,6 millones.
- Presión en las ganancias: La utilidad neta atribuible a WPC en el segundo trimestre cayó un 64 % interanual a 51,2 millones de dólares (EPS $0,23 vs $0,65) debido a 148,8 millones en "otras pérdidas" y mayores gastos por intereses que contrarrestaron las ganancias de ingresos. El EPS del primer semestre disminuyó a $0,80 (-41 %).
- Expansión del portafolio: Se cerraron 81 adquisiciones de propiedades en lo que va del año por 542,7 millones; el portafolio ahora cuenta con 1.600 activos net-lease (178 millones de pies cuadrados) más 72 propiedades operativas. La ocupación es del 98,2 % con un plazo promedio ponderado de arrendamiento de 12,1 años.
- Disposiciones y ganancias: Se vendieron 17 activos net-lease y 10 de autoalmacenamiento; se realizó una ganancia de 52,8 millones en el segundo trimestre (96,6 millones en el año hasta la fecha).
- Balance general: Las inversiones inmobiliarias aumentaron a 15,34 mil millones (+5,2 % en el año). La deuda subió a 8,64 mil millones (saldo neto de revolver 660,9 millones), mientras que el efectivo cayó a 244,8 millones (-62 % en el año). La deuda neta/activos totales es aproximadamente 48 %.
- Actividad de capital: Se utilizaron 1,47 mil millones en el revolver, se pagaron 865 millones; se reembolsaron 450 millones en notas senior; no se emitieron nuevas notas. Se declaró un dividendo trimestral de $0,90 por acción (3,60 anualizado, rendimiento 7,4 %*).
- Flujo de caja: Flujo de caja operativo de 677,2 millones frente a 1,26 mil millones en el mismo periodo del año anterior; la caída se debe a menores ganancias realizadas y mayor uso de capital de trabajo.
- Patrimonio: El valor en libros bajó un 2,5 % a 8,21 mil millones; la pérdida en otros resultados integrales acumulados (AOCI) aumentó a -264,8 millones por marcas de derivados y FX.
*Rendimiento basado en el cierre del 25/7/25.
W. P. Carey (WPC) 2025년 2분기 10-Q 주요 내용:
- 매출 성장: 2분기 총매출이 전년 동기 대비 10.6% 증가한 4억 3,080만 달러; 상반기 매출은 7.9% 증가한 8억 4,060만 달러.
- 수익 압박: 2분기 WPC 귀속 순이익은 전년 동기 대비 64% 감소한 5,120만 달러(EPS 0.23달러 vs 0.65달러), 1억 4,880만 달러의 "기타 손실" 및 증가한 이자 비용이 매출 증가를 상쇄함. 상반기 EPS는 0.80달러로 41% 감소.
- 포트폴리오 확장: 올해 현재까지 81건의 부동산 인수 완료, 총 5억 4,270만 달러; 현재 포트폴리오는 1,600개 순임대 자산(1억 7,800만 평방피트)과 72개 운영 자산 보유. 점유율 98.2%, 가중평균 임대기간 12.1년.
- 처분 및 이익: 17개 순임대 자산과 10개 셀프스토리지 자산 매각; 2분기 매각 이익 5,280만 달러(연초 대비 9,660만 달러).
- 재무상태: 부동산 투자액 153억 4천만 달러로 5.2% 증가. 부채는 86억 4천만 달러로 증가(순회전대출 잔액 6억 6,090만 달러), 현금은 2억 4,480만 달러로 62% 감소. 순부채/총자산 비율 약 48%.
- 자본 활동: 회전 신용 대출에서 14억 7천만 달러 인출, 8억 6,500만 달러 상환; 선순위 채권 4억 5천만 달러 상환; 신규 채권 발행 없음. 분기 배당금 주당 0.90달러 선언(연간 3.60달러, 수익률 7.4%*).
- 현금 흐름: 영업 현금 흐름 6억 7,720만 달러, 전년 동기 12억 6천만 달러 대비 감소; 실현 이익 감소 및 운전자본 사용 증가가 원인.
- 자본: 장부가치 82억 1천만 달러로 2.5% 감소; 파생상품 평가손 및 환율 변동으로 기타포괄손실(AOCI) -2억 6,480만 달러로 확대.
*수익률은 2025년 7월 25일 종가 기준.
Points clés du 10-Q du T2 2025 de W. P. Carey (WPC) :
- Croissance des revenus : Les revenus totaux du T2 ont augmenté de 10,6 % en glissement annuel pour atteindre 430,8 M$ ; les revenus du 1er semestre ont progressé de 7,9 % pour atteindre 840,6 M$.
- Pression sur les bénéfices : Le résultat net attribuable à WPC au T2 a chuté de 64 % en glissement annuel à 51,2 M$ (BPA 0,23 $ contre 0,65 $), en raison de 148,8 M$ de « autres pertes » et de charges d’intérêts plus élevées compensant les gains de chiffre d’affaires. Le BPA du 1er semestre a diminué à 0,80 $ (-41 %).
- Expansion du portefeuille : 81 acquisitions immobilières conclues depuis le début de l’année pour 542,7 M$ ; le portefeuille compte désormais 1 600 actifs en location nette (178 millions de pieds carrés) plus 72 propriétés opérationnelles. Taux d’occupation à 98,2 % avec une durée moyenne pondérée des baux de 12,1 ans.
- Aliénations et gains : Vente de 17 actifs en location nette et de 10 unités de self-stockage ; gain réalisé de 52,8 M$ au T2 (96,6 M$ depuis le début de l’année).
- Bilan : Les investissements immobiliers ont augmenté à 15,34 Md$ (+5,2 % depuis le début de l’année). La dette a augmenté à 8,64 Md$ (solde net du revolver 660,9 M$), tandis que la trésorerie a chuté à 244,8 M$ (-62 % depuis le début de l’année). Dette nette/actifs totaux ≈ 48 %.
- Activité de capital : 1,47 Md$ tirés sur la ligne de crédit revolver, 865 M$ remboursés ; 450 M$ de billets senior remboursés ; aucune nouvelle émission. Dividende trimestriel déclaré de 0,90 $/action (3,60 $ annualisé, rendement 7,4 %*).
- Flux de trésorerie : Flux de trésorerie opérationnel de 677,2 M$ contre 1,26 Md$ sur la même période de l’année précédente ; baisse due à des gains réalisés moindres et à une utilisation accrue du fonds de roulement.
- Capitaux propres : La valeur comptable a diminué de 2,5 % à 8,21 Md$ ; la perte sur les autres éléments du résultat global (AOCI) s’est creusée à -264,8 M$ en raison des ajustements sur dérivés et changes.
*Rendement basé sur la clôture du 25/07/25.
W. P. Carey (WPC) Highlights zum 10-Q des 2. Quartals 2025:
- Umsatzwachstum: Der Gesamtumsatz im 2. Quartal stieg im Jahresvergleich um 10,6 % auf 430,8 Mio. USD; der Umsatz im ersten Halbjahr erhöhte sich um 7,9 % auf 840,6 Mio. USD.
- Gewinnbelastung: Der dem WPC zurechenbare Nettogewinn im 2. Quartal fiel im Jahresvergleich um 64 % auf 51,2 Mio. USD (EPS 0,23 USD vs. 0,65 USD), da sonstige Verluste in Höhe von 148,8 Mio. USD und höhere Zinsaufwendungen die Umsatzsteigerungen ausglichen. Das EPS für das erste Halbjahr sank auf 0,80 USD (-41 %).
- Portfolioerweiterung: Bis heute wurden 81 Immobilienakquisitionen im Wert von 542,7 Mio. USD abgeschlossen; das Portfolio umfasst nun 1.600 Netto-Mietobjekte (178 Mio. Quadratfuß) plus 72 operative Immobilien. Die Auslastung liegt bei 98,2 % mit einer gewichteten durchschnittlichen Vertragslaufzeit von 12,1 Jahren.
- Veräußerungen & Gewinne: Verkauf von 17 Netto-Mietobjekten und 10 Self-Storage-Anlagen; im 2. Quartal wurde ein Verkaufsgewinn von 52,8 Mio. USD realisiert (96,6 Mio. USD seit Jahresbeginn).
- Bilanz: Immobilieninvestitionen stiegen auf 15,34 Mrd. USD (+5,2 % seit Jahresbeginn). Die Verschuldung erhöhte sich auf 8,64 Mrd. USD (Netto-Revolver-Saldo 660,9 Mio. USD), während die liquiden Mittel auf 244,8 Mio. USD (-62 % seit Jahresbeginn) sanken. Nettoverbindlichkeiten/ Gesamtvermögen ca. 48 %.
- Kapitalaktivitäten: Revolverkredit in Höhe von 1,47 Mrd. USD in Anspruch genommen, 865 Mio. USD zurückgezahlt; 450 Mio. USD Senior Notes zurückgezahlt; keine neuen Anleihen begeben. Quartalsdividende von 0,90 USD pro Aktie erklärt (annualisiert 3,60 USD, Rendite 7,4 %*).
- Cashflow: Operativer Cashflow 677,2 Mio. USD gegenüber 1,26 Mrd. USD im Vorjahreszeitraum; Rückgang durch geringere realisierte Gewinne und höheren Einsatz von Betriebskapital.
- Eigenkapital: Buchwert sank um 2,5 % auf 8,21 Mrd. USD; AOCI-Verlust vertiefte sich auf -264,8 Mio. USD durch Derivatebewertungen und Währungseffekte.
*Rendite basierend auf dem Schlusskurs vom 25.07.2025.
Positive
- Revenue up 10.6 % YoY driven by CPI-linked rent escalations and acquisitions.
- Portfolio occupancy 98.2 % with 12.1-year WA lease term provides long-term cash-flow visibility.
- $52.8 m Q2 gain on asset sales demonstrates ability to recycle capital above book value.
- Continued dividend growth—declared $0.90/sh, up from $0.87 last year.
Negative
- EPS declined 64 % YoY due to $149 m of other losses and higher interest expense.
- Cash balance fell 62 % YTD while debt increased $597 m, weakening liquidity.
- Interest expense up 10 % YoY as variable-rate borrowings grow.
- Impairment charges and hedge losses contributed to $14.1 m YTD OCI loss, signalling valuation pressure.
Insights
TL;DR: Solid rent growth and high occupancy, but earnings compressed by mark-to-market losses and rising leverage.
Core leasing metrics remain strong: 98 % occupancy, CPI-linked rents, and 12-year WA lease term underpin predictable cash flows. Net-lease revenue climbed ≈11 % on acquisitions and contractual bumps. However, $149 m of "Other losses" (likely unrealized hedge/FX marks) plus $72 m interest expense cut EPS to $0.23. Cash balance dropped $396 m YTD as $543 m acquisitions and $391 m dividends outpaced sale proceeds and credit-facility draws, pushing net debt higher and revolver usage to $661 m. Leverage sits near mid-5× net-debt/EBITDA—a manageable level but rising rate exposure bears monitoring. Management continues recycling: $309 m asset sales at attractive cap rates generated $53 m gains. Dividend coverage (payout ≈112 % of FFO proxy) looks tight; sustaining hikes will require stabilizing non-cash losses and restoring FFO growth.
TL;DR: Higher debt, shrinking liquidity, and volatility in non-cash items temper otherwise stable real-estate fundamentals.
Debt rose $597 m YTD while cash tumbled, taking quick-ratio below 0.1×. Variable-rate borrowings (revolver + term loans) now exceed $1.9 bn, exposing WPC to SOFR/EURIBOR moves despite hedges—note $32 m OCI hedge losses this quarter. Interest coverage slid to ~3×. Impairments and OCI swings signal valuation sensitivity, though underlying property NOI is intact. The 7 %+ dividend yield remains attractive but hinges on capital-market access; management’s ability to term out revolver balances and trim non-core assets will be critical in H2.
W. P. Carey (WPC) evidenze del 10-Q del secondo trimestre 2025:
- Crescita dei ricavi: i ricavi totali del secondo trimestre sono aumentati del 10,6% su base annua, raggiungendo 430,8 milioni di dollari; i ricavi del primo semestre sono cresciuti del 7,9%, arrivando a 840,6 milioni di dollari.
- Pressione sugli utili: l'utile netto attribuibile a WPC nel secondo trimestre è diminuito del 64% su base annua, attestandosi a 51,2 milioni di dollari (EPS $0,23 contro $0,65), a causa di perdite "altre" per 148,8 milioni di dollari e maggiori oneri finanziari che hanno compensato i guadagni dei ricavi. L'EPS del primo semestre è sceso a $0,80 (-41%).
- Espansione del portafoglio: 81 acquisizioni di immobili concluse da inizio anno per un valore di 542,7 milioni di dollari; il portafoglio conta ora 1.600 asset net-lease (178 milioni di piedi quadrati) oltre a 72 proprietà operative. Tasso di occupazione al 98,2% con durata media ponderata dei contratti di locazione di 12,1 anni.
- Disposizioni e guadagni: venduti 17 asset net-lease e 10 immobili self-storage; realizzato un guadagno di 52,8 milioni di dollari nel secondo trimestre ($96,6 milioni da inizio anno).
- Bilancio: investimenti immobiliari saliti a 15,34 miliardi di dollari (+5,2% da inizio anno). Il debito è aumentato a 8,64 miliardi di dollari (saldo netto del revolver 660,9 milioni), mentre la liquidità è scesa a 244,8 milioni (-62% da inizio anno). Rapporto debito netto/attività totali circa 48%.
- Attività di capitale: prelevati 1,47 miliardi di dollari sul revolver, rimborsati 865 milioni; rimborsati 450 milioni di senior notes; nessuna nuova emissione di note. Dividendo trimestrale dichiarato di 0,90 dollari per azione (3,60 dollari annualizzati, rendimento 7,4%*).
- Flusso di cassa: flusso di cassa operativo di 677,2 milioni di dollari rispetto a 1,26 miliardi nello stesso periodo dell’anno precedente; il calo è dovuto a minori guadagni realizzati e maggiori utilizzi di capitale circolante.
- Patrimonio netto: valore contabile diminuito del 2,5% a 8,21 miliardi di dollari; perdita su altri utili complessivi (AOCI) aumentata a -264,8 milioni per variazioni su derivati e cambi.
*Rendimento calcolato sulla chiusura del 25 luglio 2025.
Aspectos destacados del 10-Q del segundo trimestre de 2025 de W. P. Carey (WPC):
- Crecimiento de ingresos: Los ingresos totales del segundo trimestre aumentaron un 10,6 % interanual, alcanzando 430,8 millones de dólares; los ingresos del primer semestre crecieron un 7,9 % hasta 840,6 millones.
- Presión en las ganancias: La utilidad neta atribuible a WPC en el segundo trimestre cayó un 64 % interanual a 51,2 millones de dólares (EPS $0,23 vs $0,65) debido a 148,8 millones en "otras pérdidas" y mayores gastos por intereses que contrarrestaron las ganancias de ingresos. El EPS del primer semestre disminuyó a $0,80 (-41 %).
- Expansión del portafolio: Se cerraron 81 adquisiciones de propiedades en lo que va del año por 542,7 millones; el portafolio ahora cuenta con 1.600 activos net-lease (178 millones de pies cuadrados) más 72 propiedades operativas. La ocupación es del 98,2 % con un plazo promedio ponderado de arrendamiento de 12,1 años.
- Disposiciones y ganancias: Se vendieron 17 activos net-lease y 10 de autoalmacenamiento; se realizó una ganancia de 52,8 millones en el segundo trimestre (96,6 millones en el año hasta la fecha).
- Balance general: Las inversiones inmobiliarias aumentaron a 15,34 mil millones (+5,2 % en el año). La deuda subió a 8,64 mil millones (saldo neto de revolver 660,9 millones), mientras que el efectivo cayó a 244,8 millones (-62 % en el año). La deuda neta/activos totales es aproximadamente 48 %.
- Actividad de capital: Se utilizaron 1,47 mil millones en el revolver, se pagaron 865 millones; se reembolsaron 450 millones en notas senior; no se emitieron nuevas notas. Se declaró un dividendo trimestral de $0,90 por acción (3,60 anualizado, rendimiento 7,4 %*).
- Flujo de caja: Flujo de caja operativo de 677,2 millones frente a 1,26 mil millones en el mismo periodo del año anterior; la caída se debe a menores ganancias realizadas y mayor uso de capital de trabajo.
- Patrimonio: El valor en libros bajó un 2,5 % a 8,21 mil millones; la pérdida en otros resultados integrales acumulados (AOCI) aumentó a -264,8 millones por marcas de derivados y FX.
*Rendimiento basado en el cierre del 25/7/25.
W. P. Carey (WPC) 2025년 2분기 10-Q 주요 내용:
- 매출 성장: 2분기 총매출이 전년 동기 대비 10.6% 증가한 4억 3,080만 달러; 상반기 매출은 7.9% 증가한 8억 4,060만 달러.
- 수익 압박: 2분기 WPC 귀속 순이익은 전년 동기 대비 64% 감소한 5,120만 달러(EPS 0.23달러 vs 0.65달러), 1억 4,880만 달러의 "기타 손실" 및 증가한 이자 비용이 매출 증가를 상쇄함. 상반기 EPS는 0.80달러로 41% 감소.
- 포트폴리오 확장: 올해 현재까지 81건의 부동산 인수 완료, 총 5억 4,270만 달러; 현재 포트폴리오는 1,600개 순임대 자산(1억 7,800만 평방피트)과 72개 운영 자산 보유. 점유율 98.2%, 가중평균 임대기간 12.1년.
- 처분 및 이익: 17개 순임대 자산과 10개 셀프스토리지 자산 매각; 2분기 매각 이익 5,280만 달러(연초 대비 9,660만 달러).
- 재무상태: 부동산 투자액 153억 4천만 달러로 5.2% 증가. 부채는 86억 4천만 달러로 증가(순회전대출 잔액 6억 6,090만 달러), 현금은 2억 4,480만 달러로 62% 감소. 순부채/총자산 비율 약 48%.
- 자본 활동: 회전 신용 대출에서 14억 7천만 달러 인출, 8억 6,500만 달러 상환; 선순위 채권 4억 5천만 달러 상환; 신규 채권 발행 없음. 분기 배당금 주당 0.90달러 선언(연간 3.60달러, 수익률 7.4%*).
- 현금 흐름: 영업 현금 흐름 6억 7,720만 달러, 전년 동기 12억 6천만 달러 대비 감소; 실현 이익 감소 및 운전자본 사용 증가가 원인.
- 자본: 장부가치 82억 1천만 달러로 2.5% 감소; 파생상품 평가손 및 환율 변동으로 기타포괄손실(AOCI) -2억 6,480만 달러로 확대.
*수익률은 2025년 7월 25일 종가 기준.
Points clés du 10-Q du T2 2025 de W. P. Carey (WPC) :
- Croissance des revenus : Les revenus totaux du T2 ont augmenté de 10,6 % en glissement annuel pour atteindre 430,8 M$ ; les revenus du 1er semestre ont progressé de 7,9 % pour atteindre 840,6 M$.
- Pression sur les bénéfices : Le résultat net attribuable à WPC au T2 a chuté de 64 % en glissement annuel à 51,2 M$ (BPA 0,23 $ contre 0,65 $), en raison de 148,8 M$ de « autres pertes » et de charges d’intérêts plus élevées compensant les gains de chiffre d’affaires. Le BPA du 1er semestre a diminué à 0,80 $ (-41 %).
- Expansion du portefeuille : 81 acquisitions immobilières conclues depuis le début de l’année pour 542,7 M$ ; le portefeuille compte désormais 1 600 actifs en location nette (178 millions de pieds carrés) plus 72 propriétés opérationnelles. Taux d’occupation à 98,2 % avec une durée moyenne pondérée des baux de 12,1 ans.
- Aliénations et gains : Vente de 17 actifs en location nette et de 10 unités de self-stockage ; gain réalisé de 52,8 M$ au T2 (96,6 M$ depuis le début de l’année).
- Bilan : Les investissements immobiliers ont augmenté à 15,34 Md$ (+5,2 % depuis le début de l’année). La dette a augmenté à 8,64 Md$ (solde net du revolver 660,9 M$), tandis que la trésorerie a chuté à 244,8 M$ (-62 % depuis le début de l’année). Dette nette/actifs totaux ≈ 48 %.
- Activité de capital : 1,47 Md$ tirés sur la ligne de crédit revolver, 865 M$ remboursés ; 450 M$ de billets senior remboursés ; aucune nouvelle émission. Dividende trimestriel déclaré de 0,90 $/action (3,60 $ annualisé, rendement 7,4 %*).
- Flux de trésorerie : Flux de trésorerie opérationnel de 677,2 M$ contre 1,26 Md$ sur la même période de l’année précédente ; baisse due à des gains réalisés moindres et à une utilisation accrue du fonds de roulement.
- Capitaux propres : La valeur comptable a diminué de 2,5 % à 8,21 Md$ ; la perte sur les autres éléments du résultat global (AOCI) s’est creusée à -264,8 M$ en raison des ajustements sur dérivés et changes.
*Rendement basé sur la clôture du 25/07/25.
W. P. Carey (WPC) Highlights zum 10-Q des 2. Quartals 2025:
- Umsatzwachstum: Der Gesamtumsatz im 2. Quartal stieg im Jahresvergleich um 10,6 % auf 430,8 Mio. USD; der Umsatz im ersten Halbjahr erhöhte sich um 7,9 % auf 840,6 Mio. USD.
- Gewinnbelastung: Der dem WPC zurechenbare Nettogewinn im 2. Quartal fiel im Jahresvergleich um 64 % auf 51,2 Mio. USD (EPS 0,23 USD vs. 0,65 USD), da sonstige Verluste in Höhe von 148,8 Mio. USD und höhere Zinsaufwendungen die Umsatzsteigerungen ausglichen. Das EPS für das erste Halbjahr sank auf 0,80 USD (-41 %).
- Portfolioerweiterung: Bis heute wurden 81 Immobilienakquisitionen im Wert von 542,7 Mio. USD abgeschlossen; das Portfolio umfasst nun 1.600 Netto-Mietobjekte (178 Mio. Quadratfuß) plus 72 operative Immobilien. Die Auslastung liegt bei 98,2 % mit einer gewichteten durchschnittlichen Vertragslaufzeit von 12,1 Jahren.
- Veräußerungen & Gewinne: Verkauf von 17 Netto-Mietobjekten und 10 Self-Storage-Anlagen; im 2. Quartal wurde ein Verkaufsgewinn von 52,8 Mio. USD realisiert (96,6 Mio. USD seit Jahresbeginn).
- Bilanz: Immobilieninvestitionen stiegen auf 15,34 Mrd. USD (+5,2 % seit Jahresbeginn). Die Verschuldung erhöhte sich auf 8,64 Mrd. USD (Netto-Revolver-Saldo 660,9 Mio. USD), während die liquiden Mittel auf 244,8 Mio. USD (-62 % seit Jahresbeginn) sanken. Nettoverbindlichkeiten/ Gesamtvermögen ca. 48 %.
- Kapitalaktivitäten: Revolverkredit in Höhe von 1,47 Mrd. USD in Anspruch genommen, 865 Mio. USD zurückgezahlt; 450 Mio. USD Senior Notes zurückgezahlt; keine neuen Anleihen begeben. Quartalsdividende von 0,90 USD pro Aktie erklärt (annualisiert 3,60 USD, Rendite 7,4 %*).
- Cashflow: Operativer Cashflow 677,2 Mio. USD gegenüber 1,26 Mrd. USD im Vorjahreszeitraum; Rückgang durch geringere realisierte Gewinne und höheren Einsatz von Betriebskapital.
- Eigenkapital: Buchwert sank um 2,5 % auf 8,21 Mrd. USD; AOCI-Verlust vertiefte sich auf -264,8 Mio. USD durch Derivatebewertungen und Währungseffekte.
*Rendite basierend auf dem Schlusskurs vom 25.07.2025.
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
For the quarterly period ended June 30, 2025
or
For the transition period from__________ to __________
Commission File Number: 001-13779
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (I.R.S. Employer Identification No.) | |||||||
| (Address of principal executive offices) | (Zip Code) | |||||||
Investor Relations (212) 492-8920
(212 ) 492-1100
(Registrant’s telephone numbers, including area code)
(Former name or former address, if changed since last report.)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
☑ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | |||||||||||||
Smaller reporting company | Emerging growth company | ||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑
Registrant has 218,991,352 shares of common stock, $0.001 par value, outstanding at July 25, 2025.
INDEX
| Page No. | ||||||||
| PART I — FINANCIAL INFORMATION | ||||||||
| Item 1. Financial Statements (Unaudited) | ||||||||
Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024 | 3 | |||||||
Consolidated Statements of Income for the Three and Six Months Ended June 30, 2025 and 2024 | 4 | |||||||
Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2025 and 2024 | 5 | |||||||
Consolidated Statements of Equity for the Three and Six Months Ended June 30, 2025 and 2024 | 6 | |||||||
Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024 | 8 | |||||||
Notes to Consolidated Financial Statements | 9 | |||||||
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 35 | |||||||
Item 3. Quantitative and Qualitative Disclosures About Market Risk | 55 | |||||||
Item 4. Controls and Procedures | 57 | |||||||
| PART II — OTHER INFORMATION | ||||||||
Item 6. Exhibits | 58 | |||||||
Signatures | 59 | |||||||
W. P. Carey 6/30/2025 10-Q – 1 | |||||
Forward-Looking Statements
This Quarterly Report on Form 10-Q (this “Report”), including Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 2 of Part I of this Report, contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. These forward-looking statements include, but are not limited to, statements regarding: our expectations surrounding the impact of the broader macroeconomic environment and the ability of tenants to pay rent; our financial condition, liquidity, results of operations, and prospects; our future capital expenditure and leverage levels, debt service obligations, and plans to fund our liquidity needs; prospective statements regarding our access to the capital markets, including our “at-the-market” program (“ATM Program”); statements that we make regarding our ability to remain qualified for taxation as a real estate investment trust (“REIT”); and the impact of recently issued accounting pronouncements and other regulatory activity.
These statements are based on the current expectations of our management. 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 these 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, could also have material adverse effects on our business, financial condition, liquidity, results of operations, and prospects. You should exercise caution in relying on forward-looking statements as they involve known and unknown risks, uncertainties, and other factors that may materially affect our future results, performance, achievements, or transactions. Information on factors that could impact actual results and cause them to differ from what is anticipated in the forward-looking statements contained herein is included in this Report, as well as in our other filings with the Securities and Exchange Commission (“SEC”), including but not limited to those described in Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on February 12, 2025 (the “2024 Annual Report”). Moreover, because we operate in a very competitive and rapidly changing environment, new risks are likely to emerge from time to time. Given these risks and uncertainties, potential investors are cautioned not to place undue reliance on these forward-looking statements as a prediction of future results, which speak only as of the date of this Report, unless noted otherwise. Except as required by federal securities laws and the rules and regulations of the SEC, we do not undertake to revise or update any forward-looking statements.
All references to “Notes” throughout the document refer to the footnotes to the consolidated financial statements of the registrant in Part I, Item 1. Financial Statements (Unaudited).
W. P. Carey 6/30/2025 10-Q – 2 | |||||
PART I — FINANCIAL INFORMATION
Item 1. Financial Statements.
W. P. CAREY INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands, except share and per share amounts)
| June 30, 2025 | December 31, 2024 | ||||||||||
| Assets | |||||||||||
| Investments in real estate: | |||||||||||
| Land, buildings and improvements — net lease and other | $ | $ | |||||||||
| Land, buildings and improvements — operating properties | |||||||||||
| Net investments in finance leases and loans receivable | |||||||||||
| In-place lease intangible assets and other | |||||||||||
| Above-market rent intangible assets | |||||||||||
| Investments in real estate | |||||||||||
| Accumulated depreciation and amortization | ( | ( | |||||||||
| Assets held for sale, net | |||||||||||
| Net investments in real estate | |||||||||||
| Equity method investments | |||||||||||
| Cash and cash equivalents | |||||||||||
| Other assets, net | |||||||||||
| Goodwill | |||||||||||
Total assets (a) | $ | $ | |||||||||
| Liabilities and Equity | |||||||||||
| Debt: | |||||||||||
| Senior unsecured notes, net | $ | $ | |||||||||
| Unsecured term loans, net | |||||||||||
| Unsecured revolving credit facility | |||||||||||
| Non-recourse mortgages, net | |||||||||||
| Debt, net | |||||||||||
| Accounts payable, accrued expenses and other liabilities | |||||||||||
| Below-market rent intangible liabilities, net | |||||||||||
| Deferred income taxes | |||||||||||
| Dividends payable | |||||||||||
Total liabilities (a) | |||||||||||
Commitments and contingencies (Note 11) | |||||||||||
Preferred stock, $ | |||||||||||
Common stock, $ | |||||||||||
| Additional paid-in capital | |||||||||||
| Distributions in excess of accumulated earnings | ( | ( | |||||||||
| Deferred compensation obligation | |||||||||||
| Accumulated other comprehensive loss | ( | ( | |||||||||
| Total stockholders’ equity | |||||||||||
| Noncontrolling interests | |||||||||||
| Total equity | |||||||||||
| Total liabilities and equity | $ | $ | |||||||||
__________
(a)See Note 2 for details related to variable interest entities (“VIEs”).
See Notes to Consolidated Financial Statements.
W. P. Carey 6/30/2025 10-Q – 3 | |||||
W. P. CAREY INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(in thousands, except share and per share amounts)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Real Estate: | |||||||||||||||||||||||
| Lease revenues | $ | $ | $ | $ | |||||||||||||||||||
| Income from finance leases and loans receivable | |||||||||||||||||||||||
| Operating property revenues | |||||||||||||||||||||||
| Other lease-related income | |||||||||||||||||||||||
| Investment Management: | |||||||||||||||||||||||
| Asset management revenue | |||||||||||||||||||||||
| Other advisory income and reimbursements | |||||||||||||||||||||||
| Operating Expenses | |||||||||||||||||||||||
| Depreciation and amortization | |||||||||||||||||||||||
| General and administrative | |||||||||||||||||||||||
| Reimbursable tenant costs | |||||||||||||||||||||||
| Operating property expenses | |||||||||||||||||||||||
| Property expenses, excluding reimbursable tenant costs | |||||||||||||||||||||||
| Stock-based compensation expense | |||||||||||||||||||||||
| Impairment charges — real estate | |||||||||||||||||||||||
| Merger and other expenses | |||||||||||||||||||||||
| Other Income and Expenses | |||||||||||||||||||||||
| Other gains and (losses) | ( | ( | |||||||||||||||||||||
| Interest expense | ( | ( | ( | ( | |||||||||||||||||||
| Gain on sale of real estate, net | |||||||||||||||||||||||
| Earnings from equity method investments | |||||||||||||||||||||||
| Non-operating income | |||||||||||||||||||||||
| ( | ( | ( | ( | ||||||||||||||||||||
| Income before income taxes | |||||||||||||||||||||||
| Provision for income taxes | ( | ( | ( | ( | |||||||||||||||||||
| Net Income | |||||||||||||||||||||||
| Net (income) loss attributable to noncontrolling interests | ( | ( | |||||||||||||||||||||
| Net Income Attributable to W. P. Carey | $ | $ | $ | $ | |||||||||||||||||||
| Basic Earnings Per Share | $ | $ | $ | $ | |||||||||||||||||||
| Diluted Earnings Per Share | $ | $ | $ | $ | |||||||||||||||||||
| Weighted-Average Shares Outstanding | |||||||||||||||||||||||
| Basic | |||||||||||||||||||||||
| Diluted | |||||||||||||||||||||||
See Notes to Consolidated Financial Statements.
W. P. Carey 6/30/2025 10-Q – 4 | |||||
W. P. CAREY INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
(in thousands)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Net Income | $ | $ | $ | $ | |||||||||||||||||||
| Other Comprehensive (Loss) Income | |||||||||||||||||||||||
| Unrealized (loss) gain on derivative instruments | ( | ( | ( | ||||||||||||||||||||
| Foreign currency translation adjustments | ( | ( | |||||||||||||||||||||
| ( | ( | ( | |||||||||||||||||||||
| Comprehensive Income | |||||||||||||||||||||||
| Amounts Attributable to Noncontrolling Interests | |||||||||||||||||||||||
| Net (income) loss | ( | ( | |||||||||||||||||||||
| Foreign currency translation adjustments | ( | ( | |||||||||||||||||||||
| Comprehensive (income) loss attributable to noncontrolling interests | ( | ( | |||||||||||||||||||||
| Comprehensive Income Attributable to W. P. Carey | $ | $ | $ | $ | |||||||||||||||||||
See Notes to Consolidated Financial Statements.
W. P. Carey 6/30/2025 10-Q – 5 | |||||
W. P. CAREY INC.
CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED)
(in thousands, except share and per share amounts)
| W. P. Carey Stockholders | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Distributions | Accumulated | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock | Additional | in Excess of | Deferred | Other | Total | ||||||||||||||||||||||||||||||||||||||||||||||||
| $0.001 Par Value | Paid-in | Accumulated | Compensation | Comprehensive | W. P. Carey | Noncontrolling | |||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Capital | Earnings | Obligation | Loss | Stockholders | Interests | Total | |||||||||||||||||||||||||||||||||||||||||||||
Balance at April 1, 2025 | $ | $ | $ | ( | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
| Shares issued upon delivery of vested restricted share awards | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares issued upon purchases under employee share purchase plan | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of stock-based compensation expense | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Deferral of vested shares, net | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($ | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests (Note 5) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-cash contributions from noncontrolling interests (Note 5) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Distributions to noncontrolling interests | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss: | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unrealized loss on derivative instruments | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustments | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2025 | $ | $ | $ | ( | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
| W. P. Carey Stockholders | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Distributions | Accumulated | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock | Additional | in Excess of | Deferred | Other | Total | ||||||||||||||||||||||||||||||||||||||||||||||||
| $0.001 Par Value | Paid-in | Accumulated | Compensation | Comprehensive | W. P. Carey | Noncontrolling | |||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Capital | Earnings | Obligation | Loss | Stockholders | Interests | Total | |||||||||||||||||||||||||||||||||||||||||||||
Balance at April 1, 2024 | $ | $ | $ | ( | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
| Shares issued upon delivery of vested restricted share awards | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
| Shares issued upon purchases under employee share purchase plan | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of stock-based compensation expense | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Delivery of deferred vested shares, net | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($ | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Contributions from noncontrolling interests | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Distributions to noncontrolling interests | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unrealized loss on derivative instruments | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustments | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2024 | $ | $ | $ | ( | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
(Continued)
W. P. Carey 6/30/2025 10-Q – 6 | |||||
W. P. CAREY INC.
CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED)
(Continued)
(in thousands, except share and per share amounts)
| W. P. Carey Stockholders | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Distributions | Accumulated | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock | Additional | in Excess of | Deferred | Other | Total | ||||||||||||||||||||||||||||||||||||||||||||||||
| $0.001 Par Value | Paid-in | Accumulated | Compensation | Comprehensive | W. P. Carey | Noncontrolling | |||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Capital | Earnings | Obligation | Loss | Stockholders | Interests | Total | |||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2025 | $ | $ | $ | ( | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
| Shares issued upon delivery of vested restricted share awards | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
| Shares issued upon purchases under employee share purchase plan | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of stock-based compensation expense | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Deferral of vested shares, net | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($ | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests (Note 5) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-cash contributions from noncontrolling interests (Note 5) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Distributions to noncontrolling interests | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unrealized loss on derivative instruments | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustments | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2025 | $ | $ | $ | ( | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
| W. P. Carey Stockholders | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Distributions | Accumulated | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock | Additional | in Excess of | Deferred | Other | Total | ||||||||||||||||||||||||||||||||||||||||||||||||
| $0.001 Par Value | Paid-in | Accumulated | Compensation | Comprehensive | W. P. Carey | Noncontrolling | |||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Capital | Earnings | Obligation | Loss | Stockholders | Interests | Total | |||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2024 | $ | $ | $ | ( | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
| Shares issued upon delivery of vested restricted share awards | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
| Shares issued upon purchases under employee share purchase plan | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of stock-based compensation expense | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Deferral of vested shares, net | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($ | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Contributions from noncontrolling interests | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Distributions to noncontrolling interests | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unrealized gain on derivative instruments | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustments | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2024 | $ | $ | $ | ( | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
See Notes to Consolidated Financial Statements.
W. P. Carey 6/30/2025 10-Q – 7 | |||||
W. P. CAREY INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
| Six Months Ended June 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| Cash Flows — Operating Activities | |||||||||||
| Net income | $ | $ | |||||||||
| Adjustments to net income: | |||||||||||
| Depreciation and amortization, including intangible assets and deferred financing costs | |||||||||||
| Net realized and unrealized losses (gains) on equity securities, extinguishment of debt, foreign currency exchange rate movements, and other | ( | ||||||||||
| Gain on sale of real estate, net | ( | ( | |||||||||
Straight-line rent adjustments | ( | ( | |||||||||
| Increase (decrease) in allowance for credit losses | ( | ||||||||||
| Stock-based compensation expense | |||||||||||
| Earnings from equity method investments | ( | ( | |||||||||
| Impairment charges — real estate | |||||||||||
| Distributions of earnings from equity method investments | |||||||||||
| Amortization of rent-related intangibles and deferred rental revenue | |||||||||||
| Deferred income tax expense (benefit) | ( | ||||||||||
| Gain on repayment of secured loan receivable | ( | ||||||||||
| Proceeds from sales of net investments in sales-type leases | |||||||||||
| Net changes in other operating assets and liabilities | ( | ( | |||||||||
| Net Cash Provided by Operating Activities | |||||||||||
| Cash Flows — Investing Activities | |||||||||||
| Purchases of real estate | ( | ( | |||||||||
| Proceeds from sales of real estate | |||||||||||
| Investments in loans receivable | ( | ( | |||||||||
| Funding for real estate construction, redevelopments, and other capital expenditures on real estate | ( | ( | |||||||||
| Value added taxes refunded in connection with acquisition of real estate | |||||||||||
| Value added taxes paid in connection with acquisition of real estate | ( | ( | |||||||||
| Purchase of equity investment | ( | ||||||||||
| Capital contributions to equity method investments | ( | ( | |||||||||
| Other investing activities, net | |||||||||||
| Return of capital from equity method investments | |||||||||||
| Proceeds from repayment of loans receivable | |||||||||||
| Release of tenant-funded escrow for investing activities | ( | ||||||||||
| Net Cash Used in Investing Activities | ( | ( | |||||||||
| Cash Flows — Financing Activities | |||||||||||
| Proceeds from Unsecured Revolving Credit Facility | |||||||||||
| Repayments of Unsecured Revolving Credit Facility | ( | ( | |||||||||
| Repayment of Senior Unsecured Notes | ( | ( | |||||||||
| Dividends paid | ( | ( | |||||||||
| Payments of mortgage principal | ( | ( | |||||||||
| Repayments of term loans | ( | ||||||||||
| Proceeds from term loans | |||||||||||
| Payments for withholding taxes upon delivery of equity-based awards | ( | ( | |||||||||
| Contributions from noncontrolling interests | |||||||||||
| Other financing activities, net | ( | ||||||||||
| Payment of financing costs | ( | ( | |||||||||
| Distributions to noncontrolling interests | ( | ( | |||||||||
| Proceeds from issuance of Senior Unsecured Notes | |||||||||||
| Net Cash Used in Financing Activities | ( | ( | |||||||||
| Change in Cash and Cash Equivalents and Restricted Cash During the Period | |||||||||||
| Effect of exchange rate changes on cash and cash equivalents and restricted cash | ( | ||||||||||
| Net (decrease) increase in cash and cash equivalents and restricted cash | ( | ||||||||||
| Cash and cash equivalents and restricted cash, beginning of period | |||||||||||
| Cash and cash equivalents and restricted cash, end of period | $ | $ | |||||||||
See Notes to Consolidated Financial Statements.
W. P. Carey 6/30/2025 10-Q – 8 | |||||
W. P. CAREY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Note 1. Business and Organization
W. P. Carey Inc. (“W. P. Carey” or the “Company”) is a REIT that, together with our consolidated subsidiaries, invests primarily in operationally-critical, single-tenant commercial real estate properties located in the United States and Northern and Western Europe that are leased on a long-term basis. We earn revenue principally by leasing the properties we own to companies on a triple-net lease basis, which generally requires each tenant to pay the costs associated with operating and maintaining the property.
Founded in 1973, our shares of common stock are listed on the New York Stock Exchange under the symbol “WPC.”
We elected to be taxed as a REIT under Section 856 through 860 of the Internal Revenue Code effective as of February 15, 2012. As a REIT, we are not subject to federal income taxes on income and gains that we distribute to our stockholders as long as we satisfy certain requirements, principally relating to the nature of our income and the level of our distributions, as well as other factors. We also own real property in jurisdictions outside the United States through foreign subsidiaries and are subject to income taxes on our pre-tax income earned from properties in such countries.
Lease revenues from our real estate investments generate the vast majority of our earnings. We invest primarily in commercial properties located in the United States and Northern and Western Europe, which are leased to companies on a triple-net lease basis. At June 30, 2025, our portfolio was comprised of our full or partial ownership interests in 1,600 properties, totaling approximately 178 million square feet, substantially all of which were net leased to 370 tenants, with a weighted-average lease term of 12.1 years and an occupancy rate of 98.2 %. In addition, at June 30, 2025, our portfolio was comprised of 72 operating properties, including 66 self-storage properties, four hotels, and two student housing properties, totaling approximately 5.5 million square feet.
We operate as one one
Our revenues are largely derived from the long-term leases that we execute with tenants. These revenues are classified as either Lease revenues (Note 4) or Income from finance leases and loans receivable (Note 5) in accordance with Accounting Standards Codification (“ASC”) 842, Leases.
Our operating expenses are regularly reviewed by our CODM. All expenses are reviewed, but our CODM is regularly provided with the following significant expenses, which are included in our consolidated financial statements and require no additional disaggregation: General and administrative expenses, Property expenses, excluding reimbursable tenant costs, Interest expense, and Provision for income taxes.
Note 2. Basis of Presentation
Basis of Presentation
W. P. Carey 6/30/2025 10-Q – 9 | |||||
Notes to Consolidated Financial Statements (Unaudited)
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in our consolidated financial statements and the accompanying notes. Actual results could differ from those estimates.
Basis of Consolidation
When we obtain an economic interest in an entity, we evaluate the entity to determine if it should be deemed a VIE and, if so, whether we are the primary beneficiary and are therefore required to consolidate the entity. There have been no significant changes in our VIE policies from what was disclosed in the 2024 Annual Report.
During the six months ended June 30, 2025, we had a net increase of three entities classified as a VIEs, primarily due to (i) committing to certain joint venture construction projects (Note 5) and (ii) entering into tax-deferred like-kind exchanges under Section 1031 of the Internal Revenue Code (“1031 Exchange”) that have not yet been completed.
At June 30, 2025 and December 31, 2024, we considered 17 and 14 entities, respectively, to be VIEs, of which we consolidated 12 and nine , respectively, as we are considered the primary beneficiary. The following table presents a summary of selected financial data of the consolidated VIEs included in our consolidated balance sheets (in thousands):
| June 30, 2025 | December 31, 2024 | ||||||||||
| Land, buildings and improvements — net lease and other | $ | $ | |||||||||
| Net investments in finance leases and loans receivable | |||||||||||
| In-place lease intangible assets and other | |||||||||||
| Above-market rent intangible assets | |||||||||||
| Accumulated depreciation and amortization | ( | ( | |||||||||
| Total assets | |||||||||||
| Non-recourse mortgages, net | $ | $ | |||||||||
| Below-market rent intangible liabilities, net | |||||||||||
| Total liabilities | |||||||||||
Revenue Recognition
W. P. Carey 6/30/2025 10-Q – 10 | |||||
Notes to Consolidated Financial Statements (Unaudited)
Cash and Cash Equivalents and Restricted Cash
The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets to the consolidated statements of cash flows (in thousands):
| June 30, 2025 | December 31, 2024 | ||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash (a) | |||||||||||
Total cash and cash equivalents and restricted cash | $ | $ | |||||||||
__________
(a)Restricted cash is included within Other assets, net on our consolidated balance sheets. Amounts as of June 30, 2025 and December 31, 2024 included $135.2 million and $14.6 million, respectively, of proceeds from certain dispositions, which were held by an intermediary and were designated for future 1031 Exchange transactions.
Recent Accounting Pronouncements
In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 requires public companies to annually (i) disclose specific categories in the rate reconciliation disclosure and (ii) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than five percent of the amount computed by multiplying pre-tax income or loss by the applicable statutory income tax rate). ASU 2023-09 also requires entities to disclose their income tax payments to international, federal, state, and local jurisdictions, among other changes. ASU 2023-09 is effective for annual periods beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements.
Note 3. Agreements and Transactions with Related Parties
Advisory Agreements with NLOP and CESH
We currently have advisory arrangements with Net Lease Office Properties (“NLOP”) and Carey European Student Housing Fund I, L.P. (“CESH”), pursuant to which we earn fees and are entitled to receive reimbursement for certain administrative expenses.
The following tables present a summary of revenue earned and reimbursable costs received/accrued from NLOP and CESH for the periods indicated, included in the consolidated financial statements (in thousands):
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
Asset management revenue (a) (b) | $ | $ | $ | $ | |||||||||||||||||||
Administrative reimbursements (a) (c) | |||||||||||||||||||||||
Reimbursable costs from affiliates (a) (c) | |||||||||||||||||||||||
| $ | $ | $ | $ | ||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| NLOP | $ | $ | $ | $ | |||||||||||||||||||
| CESH | |||||||||||||||||||||||
| $ | $ | $ | $ | ||||||||||||||||||||
__________
(a)Amounts represent revenues from contracts under ASC 606.
(b)Included within Asset management revenue in the consolidated statements of income.
(c)Included within Other advisory income and reimbursements in the consolidated statements of income.
W. P. Carey 6/30/2025 10-Q – 11 | |||||
Notes to Consolidated Financial Statements (Unaudited)
The following table presents a summary of amounts due from affiliates, which are included within Other assets, net in the consolidated financial statements (in thousands):
| June 30, 2025 | December 31, 2024 | ||||||||||
| Asset management fees receivable | $ | $ | |||||||||
| Accounts receivable | |||||||||||
| Reimbursable costs | |||||||||||
| $ | $ | ||||||||||
Asset Management Revenue
Under the advisory agreement with NLOP, we earn an asset management fee, paid in cash, which was initially set at an annual amount of $7.5 million and is being reduced proportionately following the disposition of each portfolio property. Under the advisory agreement with CESH, we earn asset management revenue at a rate of 1.0 % based on its gross assets at fair value, paid in cash.
Administrative Reimbursements
Under the advisory agreement with NLOP, we earn a base administrative amount of approximately $4.0 million annually, for certain administrative services, including day-to-day management services, investor relations, accounting, tax, legal, and other administrative matters, paid in cash.
Reimbursable Costs from Affiliates
CESH reimburses us in cash for certain personnel and overhead costs that we incur on its behalf, based on actual expenses incurred.
Back-End Fees and Interests in CESH
Under our advisory arrangements with CESH, we may also receive compensation in connection with providing a liquidity event for its investors. Such back-end fees or interests include interests in disposition proceeds. There can be no assurance as to whether or when any back-end fees or interests will be realized.
Other Transactions with Affiliates and Related Parties
Captive Insurance Company
In March 2025, we formed a wholly owned captive insurance company, which commenced operations in May 2025 and insures a portion of the North American real property portfolios of each of NLOP and us. Annual property insurance premiums from NLOP properties (commencing May 1, 2025) total $0.7 million, of which we recognized $0.1 million for the three and six months ended June 30, 2025, which is included in Other gains and (losses) in the consolidated financial statements. Our captive insurance company does not have a material impact on our consolidated financial statements.
Other
At June 30, 2025, we owned interests in nine jointly owned investments in real estate, with the remaining interests held by third parties. We consolidate six such investments and account for the remaining three investments under the equity method of accounting (Note 7). In addition, we owned limited partnership units of CESH at that date. We elected to account for our investment in CESH under the fair value option (Note 7).
W. P. Carey 6/30/2025 10-Q – 12 | |||||
Notes to Consolidated Financial Statements (Unaudited)
Note 4. Land, Buildings and Improvements, and Assets Held for Sale
Land, Buildings and Improvements — Net Lease and Other
Land and buildings leased to others, which are subject to operating leases, and real estate under construction, are summarized as follows (in thousands):
| June 30, 2025 | December 31, 2024 | ||||||||||
| Land | $ | $ | |||||||||
| Buildings and improvements | |||||||||||
| Real estate under construction | |||||||||||
| Less: Accumulated depreciation | ( | ( | |||||||||
| $ | $ | ||||||||||
During the six months ended June 30, 2025, the U.S. dollar weakened against the euro, as the end-of-period rate for the U.S. dollar in relation to the euro increased by 12.8 % to $1.1720 from $1.0389 . As a result of this fluctuation in foreign currency exchange rates, the carrying value of our Land, buildings and improvements — net lease and other increased by $435.7 million from December 31, 2024 to June 30, 2025.
During the six months ended June 30, 2025, we reclassified a portfolio of 26 properties classified as Land, buildings and improvements — net lease and other to Net investments in finance leases and loans receivable since we entered into an agreement to sell the properties to the tenant. As a result, the carrying value of our Land, buildings and improvements — net lease and other decreased by $129.7
On September 1, 2024, we entered into net lease agreements for certain self-storage properties previously classified as operating properties. On April 1, 2025, two of these net leases commenced. As a result, in April 2025, we reclassified two self-storage properties with an aggregate carrying value of $34.0
In connection with changes in lease classifications due to extensions of the underlying leases, we reclassified three properties with an aggregate carrying value of $15.0
Depreciation expense, including the effect of foreign currency translation, on our buildings and improvements subject to operating leases was $77.4 million and $72.5 million for the three months ended June 30, 2025 and 2024, respectively, and $152.7 million and $144.1 million for the six months ended June 30, 2025 and 2024, respectively.
W. P. Carey 6/30/2025 10-Q – 13 | |||||
Notes to Consolidated Financial Statements (Unaudited)
Acquisitions of Real Estate
During the six months ended June 30, 2025, we entered into the following investments, which were deemed to be real estate asset acquisitions (dollars in thousands):
| Property Location(s) | Number of Properties | Date of Acquisition | Property Type | Total Capitalized Costs | ||||||||||||||||||||||
Various, United States (a) | 2/26/2025 | Industrial, Warehouse | $ | |||||||||||||||||||||||
Various, United States (b) | 3/3/2025 | Retail | ||||||||||||||||||||||||
| Mishawaka, Indiana | 3/26/2025 | Specialty (Healthcare) | ||||||||||||||||||||||||
Various, Germany ( | 4/11/2025 | Industrial | ||||||||||||||||||||||||
| Santa Fe Springs, California | 4/23/2025 | Warehouse | ||||||||||||||||||||||||
Various, Italy ( | 5/13/2025 | Industrial | ||||||||||||||||||||||||
| Chattanooga, Tennessee | 6/16/2025 | Industrial | ||||||||||||||||||||||||
| Newark, New Jersey and Boston, Massachusetts | 6/17/2025 | Industrial | ||||||||||||||||||||||||
| $ | ||||||||||||||||||||||||||
__________
(a)This investment includes properties located across 13 U.S. states.
(b)This investment includes properties located across three U.S. states.
(c)Amount reflects the applicable exchange rate on the date of transaction.
The aggregate purchase price allocation for investments disclosed above is as follows (dollars in thousands):
| Total Capitalized Costs | |||||
| Land | $ | ||||
| Buildings and improvements | |||||
| Intangible assets: | |||||
In-place lease (weighted-average expected life of | |||||
| Prepaid rent liabilities | ( | ||||
| $ | |||||
Real Estate Under Construction — Net Lease and Operating Properties
During the six months ended June 30, 2025, we capitalized real estate under construction totaling $38.1 million. The number of construction projects in progress with balances included in real estate under construction was six and four as of June 30, 2025 and December 31, 2024, respectively. Aggregate unfunded commitments totaled approximately $83.2 million and $72.1 million as of June 30, 2025 and December 31, 2024, respectively.
During the six months ended June 30, 2025, we completed the following construction projects (dollars in thousands):
| Property Location(s) | Primary Transaction Type | Number of Properties | Date of Completion | Property Type | Total Capitalized Costs | |||||||||||||||||||||||||||
| Galeras, Mexico | Expansion | 6/26/2025 | Industrial | $ | ||||||||||||||||||||||||||||
| $ | ||||||||||||||||||||||||||||||||
During the six months ended June 30, 2025, we committed to fund three construction projects totaling $46.9 million. We currently expect to complete these projects in 2025 and 2026.
W. P. Carey 6/30/2025 10-Q – 14 | |||||
Notes to Consolidated Financial Statements (Unaudited)
Capitalized interest incurred during construction was $0.3 million and $0.2 million for the three months ended June 30, 2025 and 2024, respectively, and $0.5 million and $0.4 million for the six months ended June 30, 2025 and 2024, respectively, which reduces Interest expense in the consolidated statements of income.
Dispositions of Properties
During the six months ended June 30, 2025, we sold 17 properties, which were classified as Land, buildings and improvements — net lease and other. As a result, the carrying value of our Land, buildings and improvements — net lease and other decreased by $129.7 million from December 31, 2024 to June 30, 2025 (Note 14).
Other Lease-Related Income
2025 — For the three and six months ended June 30, 2025, other lease-related income on our consolidated statements of income included: (i) lease termination income of $5.7 million and $7.5 million, respectively, and (ii) other lease-related settlements totaling $3.4 million and $4.4 million, respectively.
2024 — For the three and six months ended June 30, 2024, other lease-related income on our consolidated statements of income included other lease-related settlements totaling $8.9 million and $10.7 million, respectively.
Leases
Operating Lease Income
Lease income related to operating leases recognized and included in the consolidated statements of income is as follows (in thousands):
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
Lease income — fixed | $ | $ | $ | $ | |||||||||||||||||||
Lease income — variable (a) | |||||||||||||||||||||||
| Total operating lease income | $ | $ | $ | $ | |||||||||||||||||||
__________
(a)Includes (i) rent increases based on changes in the U.S. Consumer Price Index (CPI) and other comparable indices and (ii) reimbursements for property taxes, insurance, and common area maintenance services.
Land, Buildings and Improvements — Operating Properties
At June 30, 2025, Land, buildings and improvements — operating properties consisted of our investments in 61 self-storage properties, four hotels, and two student housing properties. At December 31, 2024, Land, buildings and improvements — operating properties consisted of our investments in 78 self-storage properties, four hotels, and two student housing properties. Below is a summary of our Land, buildings and improvements — operating properties (in thousands):
| June 30, 2025 | December 31, 2024 | ||||||||||
| Land | $ | $ | |||||||||
| Buildings and improvements | |||||||||||
| Less: Accumulated depreciation | ( | ( | |||||||||
| $ | $ | ||||||||||
During the six months ended June 30, 2025, the U.S. dollar weakened against the British pound sterling, resulting in an increase of $8.8 million in the carrying value of our Land, buildings and improvements — operating properties from December 31, 2024 to June 30, 2025.
W. P. Carey 6/30/2025 10-Q – 15 | |||||
Notes to Consolidated Financial Statements (Unaudited)
As described above under Land, Buildings and Improvements — Net Lease and Other, on September 1, 2024, we entered into net lease agreements for certain self-storage properties previously classified as operating properties. On April 1, 2025, two of these net leases commenced. As a result, in April 2025, we reclassified two self-storage properties with an aggregate carrying value of $34.0
Depreciation expense, including the effect of foreign currency translation, on our buildings and improvements attributable to operating properties was $6.8 million and $7.4 million for the three months ended June 30, 2025 and 2024, respectively, and $13.8 million and $14.7 million for the six months ended June 30, 2025 and 2024, respectively.
Dispositions of Properties
During the six months ended June 30, 2025, we sold ten self-storage operating properties, which were classified as Land, buildings and improvements — operating properties. As a result, the carrying value of our Land, buildings and improvements — operating properties decreased by $96.5 million from December 31, 2024 to June 30, 2025 (Note 14).
Assets Held for Sale, Net
Below is a summary of our properties held for sale (in thousands):
| June 30, 2025 | December 31, 2024 | ||||||||||
Land, buildings and improvements — operating properties | $ | $ | |||||||||
| Accumulated depreciation and amortization | ( | ||||||||||
| Assets held for sale, net | $ | $ | |||||||||
At June 30, 2025, we had five self-storage operating properties classified as Assets held for sale, net, with an aggregate carrying value of $60.0 million. These properties were sold in July 2025 (Note 15).
Note 5. Finance Receivables
Assets representing rights to receive money on demand or at fixed or determinable dates are referred to as finance receivables. Our finance receivables portfolio consists of our Net investments in finance leases and loans receivable (net of allowance for credit losses). Operating leases are not included in finance receivables.
Finance Receivables
Net investments in finance leases and loans receivable are summarized as follows (in thousands):
| Maturity Date | June 30, 2025 | December 31, 2024 | |||||||||||||||
Sale-leaseback transactions accounted for as loans receivable (a) | 2038 – 2057 | $ | $ | ||||||||||||||
Net investments in direct financing leases (b) | 2026 – 2036 | ||||||||||||||||
Secured loans receivable (c) | 2025 | ||||||||||||||||
Net investments in sales-type leases (d) | 2025 – 2057 | ||||||||||||||||
| $ | $ | ||||||||||||||||
__________
(a)These investments are accounted for as loans receivable in accordance with ASC 310, Receivables and ASC 842, Leases. Maturity dates reflect the current lease maturity dates. Amounts are net of allowance for credit losses of $29.0 million and $14.3 million as of June 30, 2025 and December 31, 2024, respectively.
(b)Amounts are net of allowance for credit losses, as disclosed below under Net Investments in Direct Financing Leases.
(c)These investments are assessed for credit loss allowances but no such allowances were recorded as of June 30, 2025 or December 31, 2024.
(d)Amounts are net of allowance for credit losses, as disclosed below under Net Investments in Sales-Type Leases.
W. P. Carey 6/30/2025 10-Q – 16 | |||||
Notes to Consolidated Financial Statements (Unaudited)
During the six months ended June 30, 2025, the U.S. dollar weakened against the euro, resulting in a $41.2 million increase in the carrying value of Net investments in finance leases and loans receivable from December 31, 2024 to June 30, 2025.
Income from finance leases and loans receivable is summarized as follows (in thousands):
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Sale-leaseback transactions accounted for as loans receivable | $ | $ | $ | $ | |||||||||||||||||||
| Net investments in direct financing leases | |||||||||||||||||||||||
| Secured loans receivable | |||||||||||||||||||||||
| Net investments in sales-type leases | |||||||||||||||||||||||
| $ | $ | $ | $ | ||||||||||||||||||||
Loans Receivable
During the six months ended June 30, 2025, we entered into the following sale-leasebacks, which were deemed to be loan receivables in accordance with ASC 310, Receivables and ASC 842, Leases (dollars in thousands):
| Property Location(s) | Number of Properties | Date of Acquisition | Property Type | Total Investment | ||||||||||||||||||||||
Blytheville, Arkansas (a) | 3/27/2025 | Industrial | $ | |||||||||||||||||||||||
| McDonald, Tennessee | 6/27/2025 | Industrial | ||||||||||||||||||||||||
| $ | ||||||||||||||||||||||||||
__________
(a)In connection with this acquisition, we capitalized (i) land lease right-of-use assets totaling $1.5 million, which are included within In-place lease intangible assets and other on our consolidated balance sheets, and (ii) operating lease liabilities totaling $1.5 million, which are included within Accounts payable, accrued expenses and other liabilities on our consolidated balance sheets.
On May 22, 2025, we committed to fund two construction projects totaling approximately $120.3 million on a consolidated basis (of which our proportionate share is approximately $108.3 million), for concert venues located in Austin, Texas, and Portland, Oregon, which we expect to be completed in 2027. We own a 90 % controlling interest in both investments, which we consolidate. In connection with these projects, and in accordance with ASC 310, Receivables and ASC 842, Leases, during the six months ended June 30, 2025 we capitalized land and buildings totaling $16.8 million, which is recorded in Net investments in finance leases and loans receivable in our consolidated financial statements. Our joint-venture partner contributed $8.7 3.9 million, which is reflected in Noncontrolling interests in our consolidated financial statements.
At June 30, 2025, the following construction loans are accounted for as secured loan receivables for accounting purposes in accordance with the acquisition, development and construction arrangement sub-section of ASC 310, Receivables (in thousands):
| Location/Description | Funded Year to Date | Loan Maturity Date (a) | Total Funded as of | |||||||||||||||||||||||
| June 30, 2025 | December 31, 2024 | |||||||||||||||||||||||||
| Las Vegas, Nevada (retail) | $ | Dec. 2025 | $ | $ | ||||||||||||||||||||||
| Las Vegas, Nevada (mixed use) | Nov. 2025 | |||||||||||||||||||||||||
| $ | $ | $ | ||||||||||||||||||||||||
__________
(a)The borrowers for these construction loans retain certain loan maturity extension options.
W. P. Carey 6/30/2025 10-Q – 17 | |||||
Notes to Consolidated Financial Statements (Unaudited)
In March 2024, a secured loan receivable was repaid to us for $24.0 million. In connection with this repayment, we recorded a release of allowance for credit losses of $2.1 million since the loan principal was fully repaid. In addition, we collected $1.4 million of unpaid interest related to a prior year upon repayment of this secured loan receivable, which was included in Income from finance leases and loans receivable on the consolidated statements of income for the three months ended June 30, 2024.
Net Investments in Direct Financing Leases
Net investments in direct financing leases is summarized as follows (in thousands):
| June 30, 2025 | December 31, 2024 | ||||||||||
| Lease payments receivable | $ | $ | |||||||||
| Unguaranteed residual value | |||||||||||
| Less: unearned income | ( | ( | |||||||||
Less: allowance for credit losses (a) | ( | ( | |||||||||
| $ | $ | ||||||||||
__________
(a)During the six months ended June 30, 2025 and 2024, we recorded a net allowance for credit losses of $3.7 million and a net release of allowance for credit losses of $8.4 million, respectively, on our net investments in direct financing leases due to changes in expected economic conditions, which was included within Other gains and (losses) in our consolidated statements of income. In addition, during the six months ended June 30, 2025, we reduced the allowance for credit losses balance by $22.7 million, in connection with the reclassification of certain properties from Net investments in finance leases and loans receivable to Land, buildings and improvements — net lease and other, as described below.
During the six months ended June 30, 2025, we reclassified three properties with an aggregate carrying value of $15.0
Net Investments in Sales-Type Leases
On May 21, 2025, we entered into an agreement to sell our portfolio of 26 funeral homes located in Spain to the tenant occupying the properties. In accordance with ASC 842, Leases, we reclassified these net-lease assets to net investments in sales-type leases totaling $162.0 million on our consolidated balance sheets (based on the estimated purchase price and the foreign currency exchange rate of the euro on the agreement date), since this agreement resulted in a lease modification. In connection with this transaction, we reclassified the following amounts to Net investments in finance leases and loans receivable: (i) $129.7 million from Land, buildings and improvements — net lease and other, (ii) $20.3 million from In-place lease intangible assets and other, and (iii) $11.0 million from Accumulated depreciation and amortization. We recognized an aggregate Gain on sale of real estate, net, of $19.0 0.5 million within Deferred income taxes and $4.5 million within Accounts payable, accrued expenses and other liabilities for this investment. This portfolio was sold in June 2025. As a result, the carrying value of Net investments in finance leases and loans receivable decreased by $162.0 million.
During the six months ended June 30, 2025, we completed the sale of two properties located in the Netherlands to the tenant occupying the properties, which was accounted for as net investments in sales-type leases and included in Net investments in finance leases and loans receivable. As a result, the carrying value of Net investments in finance leases and loans receivable decreased by $16.6 million from December 31, 2024 to June 30, 2025 (Note 14). We had previously entered into an agreement to sell the properties to the tenant occupying the properties during the third quarter of 2024. We recognized an aggregate Gain on sale of real estate, net, of $6.4 million during the three months ended September 30, 2024, related to this transaction.
Prior to the reclassifications of certain properties to net investments in sales-type leases, earnings from such investments were recognized in Lease revenues in the consolidated financial statements.
W. P. Carey 6/30/2025 10-Q – 18 | |||||
Notes to Consolidated Financial Statements (Unaudited)
Net investments in sales-type leases is summarized as follows (in thousands):
| June 30, 2025 | December 31, 2024 | ||||||||||
| Lease payments receivable | $ | $ | |||||||||
| Unguaranteed residual value | |||||||||||
| Less: unearned income | ( | ( | |||||||||
Less: allowance for credit losses (a) | ( | ||||||||||
| $ | $ | ||||||||||
__________
(a)Reflects an adjustment to the purchase price for one property classified as net investments in sales-type leases.
Credit Quality of Finance Receivables
We generally invest in facilities that we believe are critical to a tenant’s business and therefore have a lower risk of tenant default. At both June 30, 2025 and December 31, 2024, no material balances of our finance receivables were past due. Other than the lease extensions noted under Net Investments in Direct Financing Leases above, there were no material modifications of finance receivables during the six months ended June 30, 2025.
We evaluate the credit quality of our finance receivables utilizing an internal five-point credit rating scale, with one representing the highest credit quality and five representing the lowest. A credit quality of one through three indicates a range of investment grade to stable. A credit quality of four through five indicates a range of inclusion on the watch list to risk of default. The credit quality evaluation of our finance receivables is updated quarterly.
A summary of our finance receivables by internal credit quality rating, excluding our allowance for credit losses, is as follows (dollars in thousands):
| Number of Tenants / Obligors at | Carrying Value at | |||||||||||||||||||||||||
| Internal Credit Quality Indicator | June 30, 2025 | December 31, 2024 | June 30, 2025 | December 31, 2024 | ||||||||||||||||||||||
| 1 – 3 | $ | $ | ||||||||||||||||||||||||
| 4 | ||||||||||||||||||||||||||
| 5 | ||||||||||||||||||||||||||
| $ | $ | |||||||||||||||||||||||||
Note 6. Goodwill and Other Intangibles
In-place lease intangibles, at cost are included in In-place lease intangible assets and other in the consolidated financial statements. Above-market rent intangibles, at cost are included in Above-market rent intangible assets in the consolidated financial statements. Accumulated amortization of in-place lease and above-market rent intangibles is included in Accumulated depreciation and amortization in the consolidated financial statements. Internal-use software development intangibles are included in Other assets, net in the consolidated financial statements. Below-market rent intangibles are included in Below-market rent intangible liabilities, net in the consolidated financial statements.
Net lease intangibles recorded in connection with property acquisitions during the six months ended June 30, 2025 are described in Note 4.
Goodwill increased by $18.6 million during the six months ended June 30, 2025 due to foreign currency translation adjustments.
W. P. Carey 6/30/2025 10-Q – 19 | |||||
Notes to Consolidated Financial Statements (Unaudited)
Intangible assets, intangible liabilities, and goodwill are summarized as follows (in thousands):
| June 30, 2025 | December 31, 2024 | ||||||||||||||||||||||||||||||||||
| Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||||||||||
| Finite-Lived Intangible Assets | |||||||||||||||||||||||||||||||||||
Internal-use software development costs | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
| ( | ( | ||||||||||||||||||||||||||||||||||
| Lease Intangibles: | |||||||||||||||||||||||||||||||||||
| In-place lease | ( | ( | |||||||||||||||||||||||||||||||||
| Above-market rent | ( | ( | |||||||||||||||||||||||||||||||||
| ( | ( | ||||||||||||||||||||||||||||||||||
| Goodwill | |||||||||||||||||||||||||||||||||||
| Goodwill | — | — | |||||||||||||||||||||||||||||||||
| Total intangible assets | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
| Finite-Lived Intangible Liabilities | |||||||||||||||||||||||||||||||||||
| Below-market rent | $ | ( | $ | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||||||||
| Total intangible liabilities | $ | ( | $ | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||||||||
During the six months ended June 30, 2025, the U.S. dollar weakened against the euro, resulting in an increase of $45.4 million in the carrying value of our net intangible assets from December 31, 2024 to June 30, 2025. See Note 5 for a description of intangible assets reclassified to net investments in sales-type leases during the six months ended June 30, 2025.
Net amortization of intangibles, including the effect of foreign currency translation, was $40.2 million and $62.0 million for the three months ended June 30, 2025 and 2024, respectively, and $88.2 million and $104.7 million for the six months ended June 30, 2025 and 2024, respectively. Amortization of below-market rent and above-market rent intangibles is recorded as an adjustment to Lease revenues and amortization of internal-use software development and in-place lease intangibles is included in Depreciation and amortization.
Note 7. Equity Method Investments
Interests in Unconsolidated Real Estate Investments and CESH
We own interests in certain unconsolidated real estate investments with third parties and in CESH. There have been no significant changes in our equity method investment policies from what was disclosed in the 2024 Annual Report.
We own equity interests in properties that are generally leased to companies through noncontrolling interests in partnerships and limited liability companies that we do not control but over which we exercise significant influence. The underlying investments are jointly owned with third parties. We account for these investments under the equity method of accounting. We account for our interest in CESH under the equity method because, as its advisor, we do not exert control over, but we do have the ability to exercise significant influence over, CESH.
W. P. Carey 6/30/2025 10-Q – 20 | |||||
Notes to Consolidated Financial Statements (Unaudited)
The following table sets forth our ownership interests in our equity method investments and their respective carrying values (dollars in thousands):
| Carrying Value at | ||||||||||||||||||||
| Lessee/Fund/Description | Ownership Interest | June 30, 2025 | December 31, 2024 | |||||||||||||||||
Las Vegas Retail Complex (a) (b) | $ | $ | ||||||||||||||||||
Kesko Senukai (c) | ||||||||||||||||||||
Harmon Retail Corner (b) | ||||||||||||||||||||
CESH (d) | ||||||||||||||||||||
| $ | $ | |||||||||||||||||||
__________
(a)See “Las Vegas Retail Complex” below for discussion of this equity method investment.
(b)This investment is reported using the hypothetical liquidation at book value model, which may be different than pro rata ownership percentages, primarily due to the capital structure of the partnership agreement.
(c)The carrying value of this investment is affected by fluctuations in the exchange rate of the euro.
(d)We have elected to account for our investment in CESH at fair value by selecting the equity method fair value option available under GAAP.
We received aggregate distributions of $13.1 million and $13.0 million from our unconsolidated real estate investments for the six months ended June 30, 2025 and 2024, respectively. At June 30, 2025 and December 31, 2024, the aggregate unamortized basis differences on our unconsolidated real estate investments were $15.9 million and $16.5 million, respectively. We did no
Las Vegas Retail Complex
On June 10, 2021, we entered into an agreement to fund a construction loan of approximately $261.9 million (as of June 30, 2025) for a retail complex in Las Vegas, Nevada. The loan maturity date is June 30, 2026 and the borrower retains additional one-year extension options. Through June 30, 2025, we funded $250.9 million, including $3.2 million during the six months ended June 30, 2025. During the six months ended June 30, 2025, $5.0 million of this construction loan was repaid to us (which is included in the aggregate distributions from our unconsolidated real estate investments described above). The outstanding principal on this loan was $245.9 million as of June 30, 2025.
On February 27, 2025, we exercised our option to purchase a 47.50 % ownership interest in the partnership that owns the Las Vegas Retail Complex for $5.0 million. Effective as of that date, we began recognizing our proportionate share of revenues and expenses from this jointly owned investment.
Equity income from this investment (including interest income from the construction loan and our proportionate share of earnings from the 47.50 % equity interest) was $8.4 million and $8.3 million for the six months ended June 30, 2025 and 2024, respectively, which was recognized within Earnings from equity method investments in our consolidated statements of income.
Note 8. Fair Value Measurements
The fair value of an asset is defined as the exit price, which is the amount that would either be received when an asset is sold or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance establishes a three-tier fair value hierarchy based on the inputs used in measuring fair value. These tiers are: Level 1, for which quoted market prices for identical instruments are available in active markets, such as money market funds, equity securities, and U.S. Treasury securities; Level 2, for which there are inputs other than quoted prices included within Level 1 that are observable for the instrument, such as certain derivative instruments including interest rate caps, interest rate swaps, and foreign currency collars; and Level 3, for securities that do not fall into Level 1 or Level 2 and for which little or no market data exists, therefore requiring us to develop our own assumptions.
W. P. Carey 6/30/2025 10-Q – 21 | |||||
Notes to Consolidated Financial Statements (Unaudited)
Items Measured at Fair Value on a Recurring Basis
The methods and assumptions described below were used to estimate the fair value of each class of financial instrument. For significant Level 3 items, we have also provided the unobservable inputs.
Derivative Assets and Liabilities — Our derivative assets and liabilities, which are included in Other assets, net and Accounts payable, accrued expenses and other liabilities, respectively, in the consolidated financial statements, are comprised of foreign currency collars, interest rate swaps, and interest rate caps (Note 9).
The valuation of our derivative instruments is determined using a discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, as well as observable market-based inputs, including interest rate curves, spot and forward rates, and implied volatilities. We incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of our derivative instruments for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. These derivative instruments were classified as Level 2 as these instruments are custom, over-the-counter contracts with various bank counterparties that are not traded in an active market.
Equity Method Investment in CESH — We have elected to account for our investment in CESH, which is included in Equity method investments in the consolidated financial statements, at fair value by selecting the equity method fair value option available under GAAP (Note 7). We classified this investment as Level 3 because we primarily used valuation models that incorporate unobservable inputs to determine its fair value.
Investment in Shares of Lineage — We have elected to apply the measurement alternative under ASU 2016-01, Financial Instruments — Overall (Subtopic 825-10) to account for our investment in 5,546,547 shares of Lineage (a cold storage REIT), which is included in Other assets, net in the consolidated financial statements. Under this alternative, the carrying value is adjusted for any impairments or changes in fair value resulting from observable transactions for similar or identical investments in the issuer. We classified this investment as Level 2 within the fair value hierarchy because shares of Lineage are actively traded on an open market, and we make an adjustment to the value of our investment based on the promote value that the sponsor of our investment is entitled to. Since we were a legacy investor in Lineage prior to their public offering completed in July 2024, our ownership interest is subject to settlement at the discretion of Lineage over a three-year period, during which we will have the option to settle our investment in the form of cash or common stock. If our investment is not settled by Lineage during the three-year period, our investment will convert to common shares.
During the six months ended June 30, 2025, we recognized a non-cash unrealized loss on our investment in shares of Lineage of $69.1 million, due to a lower closing share price, which was recorded within Other gains and (losses) in the consolidated financial statements. In addition, during the six months ended June 30, 2025 and 2024, we recognized dividends of $5.6 million and $3.0 million, respectively, from our investment in shares of Lineage, which was recorded within Non-operating income in the consolidated financial statements. The fair value of this investment was $201.8 million and $270.9 million at June 30, 2025 and December 31, 2024, respectively.
We did not have any transfers into or out of Level 1, Level 2, and Level 3 category of measurements during either the six months ended June 30, 2025 or 2024. Gains and losses (realized and unrealized) recognized on items measured at fair value on a recurring basis included in earnings are reported within Other gains and (losses) on our consolidated financial statements.
Our other material financial instruments had the following carrying values and fair values as of the dates shown (dollars in thousands):
| June 30, 2025 | December 31, 2024 | ||||||||||||||||||||||||||||
| Level | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||||||||
Senior Unsecured Notes, net (a) (b) (c) | 2 and 3 | $ | $ | $ | $ | ||||||||||||||||||||||||
Non-recourse mortgages, net (a) (b) (d) | 3 | ||||||||||||||||||||||||||||
__________
(a)The carrying value of Senior Unsecured Notes, net (Note 10) includes unamortized deferred financing costs of $28.9 million and $30.2 million at June 30, 2025 and December 31, 2024, respectively. The carrying value of Non-recourse mortgages, net includes unamortized deferred financing costs of $0.5
W. P. Carey 6/30/2025 10-Q – 22 | |||||
Notes to Consolidated Financial Statements (Unaudited)
(b)The carrying value of Senior Unsecured Notes, net includes unamortized discount of $29.1 million and $29.9 million at June 30, 2025 and December 31, 2024, respectively. The carrying value of Non-recourse mortgages, net includes unamortized discount of $3.2 million and $4.4 million at June 30, 2025 and December 31, 2024, respectively.
(c)For those Senior Unsecured Notes for which there are no observable market prices (specifically, our private placement Senior Unsecured Notes (Note 10)), we used a discounted cash flow model that estimates the present value of future loan payments by discounting such payments at current estimated market interest rates. We consider these notes to be within the Level 3 category. For all other Senior Unsecured Notes, we determined the estimated fair value using observed market prices in an open market, which may experience limited trading volume. We consider these notes to be within the Level 2 category.
(d)We determined the estimated fair value of our non-recourse mortgage loans using a discounted cash flow model that estimates the present value of the future loan payments by discounting such payments at current estimated market interest rates. The estimated market interest rates consider interest rate risk and the value of the underlying collateral, which includes quality of the collateral, the credit quality of the tenant/obligor, and the time until maturity.
We estimated that our other financial assets and liabilities, including amounts outstanding under our Senior Unsecured Credit Facility and Unsecured Term Loan due 2029 (Note 10), but excluding finance receivables (Note 5), had fair values that approximated their carrying values at both June 30, 2025 and December 31, 2024.
Items Measured at Fair Value on a Non-Recurring Basis (Including Impairment Charges)
We periodically assess whether there are any indicators that the value of our real estate investments may be impaired or that their carrying value may not be recoverable. There have been no significant changes in our impairment policies from what was disclosed in the 2024 Annual Report.
The following tables present information about assets for which we recorded an impairment charge and that were measured at fair value on a non-recurring basis (in thousands):
| Three Months Ended June 30, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| Fair Value Measurements | Impairment Charges | Fair Value Measurements | Impairment Charges | ||||||||||||||||||||
Impairment Charges | |||||||||||||||||||||||
| Real estate | $ | $ | $ | $ | |||||||||||||||||||
| $ | $ | ||||||||||||||||||||||
| Six Months Ended June 30, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| Fair Value Measurements | Impairment Charges | Fair Value Measurements | Impairment Charges | ||||||||||||||||||||
Impairment Charges | |||||||||||||||||||||||
| Real estate | $ | $ | $ | $ | |||||||||||||||||||
| $ | $ | ||||||||||||||||||||||
Impairment charges, and their related triggering events and fair value measurements, recognized during the three and six months ended June 30, 2025, and 2024 were as follows:
Real Estate
The impairment charges described below are reflected within Impairment charges — real estate in our consolidated statements of income.
2025 — During the three and six months ended June 30, 2025, we recognized impairment charges totaling $4.3 million and $11.2 million on one and two properties, respectively, in order to reduce their carrying values to their estimated fair values, which approximated their estimated selling prices.
W. P. Carey 6/30/2025 10-Q – 23 | |||||
Notes to Consolidated Financial Statements (Unaudited)
2024 — During the three and six months ended June 30, 2024, we recognized impairment charges totaling $15.8 three Two of these properties were sold in July 2024 and one was sold in March 2025.
Note 9. Risk Management and Use of Derivative Financial Instruments
Risk Management
In the normal course of our ongoing business operations, we encounter economic risk. There are four main components of economic risk that impact us: interest rate risk, credit risk, market risk, and foreign currency risk. We are primarily subject to interest rate risk on our interest-bearing liabilities, including our Senior Unsecured Credit Facility (Note 10) and unhedged variable-rate non-recourse mortgage loans. Credit risk is the risk of default on our operations and our tenants’ inability or unwillingness to make contractually required payments. Market risk includes changes in the value of our properties and related loans, Senior Unsecured Notes, and other securities, due to changes in interest rates or other market factors. We own investments in North America, Europe, and Japan and are subject to risks associated with fluctuating foreign currency exchange rates.
Derivative Financial Instruments
There have been no significant changes in our derivative financial instrument policies from what was disclosed in the 2024 Annual Report. At both June 30, 2025 and December 31, 2024, no
The following table sets forth certain information regarding our derivative instruments (in thousands):
Derivatives Designated as Hedging Instruments | Balance Sheet Location | Derivative Assets Fair Value at | Derivative Liabilities Fair Value at | |||||||||||||||||||||||||||||
| June 30, 2025 | December 31, 2024 | June 30, 2025 | December 31, 2024 | |||||||||||||||||||||||||||||
Foreign currency collars | Other assets, net | $ | $ | $ | — | $ | — | |||||||||||||||||||||||||
| Interest rate swaps | Other assets, net | — | — | |||||||||||||||||||||||||||||
Foreign currency collars | Accounts payable, accrued expenses and other liabilities | — | — | ( | ( | |||||||||||||||||||||||||||
| Interest rate swaps | Accounts payable, accrued expenses and other liabilities | — | — | ( | ( | |||||||||||||||||||||||||||
| ( | ( | |||||||||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | ||||||||||||||||||||||||||||||||
| Foreign currency collars | Other assets, net | — | — | |||||||||||||||||||||||||||||
| Foreign currency collars | Accounts payable, accrued expenses and other liabilities | — | — | ( | ||||||||||||||||||||||||||||
| ( | ||||||||||||||||||||||||||||||||
| Total derivatives | $ | $ | $ | ( | $ | ( | ||||||||||||||||||||||||||
W. P. Carey 6/30/2025 10-Q – 24 | |||||
Notes to Consolidated Financial Statements (Unaudited)
The following tables present the impact of our derivative instruments in the consolidated financial statements (in thousands):
Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income (Loss) (a) | ||||||||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| Derivatives in Cash Flow Hedging Relationships | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||
| Foreign currency collars | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||
| Interest rate swaps | ( | ( | ( | |||||||||||||||||||||||
| Total | $ | ( | $ | ( | $ | ( | $ | |||||||||||||||||||
| Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | Location of Gain (Loss) Recognized in Income | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||||||||
| Foreign currency collars | Non-operating income | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Interest rate swaps | Interest expense | |||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||||||||||||||||||
__________
(a)Excludes net gains of less than $0.1 million and net losses of less than $0.1 million recognized on unconsolidated jointly owned investments for the three months ended June 30, 2025 and 2024, respectively, and net gains of $0.1 million and net losses of $0.5 million for the six months ended June 30, 2025 and 2024, respectively.
Amounts reported in Other comprehensive (loss) income related to interest rate derivative contracts will be reclassified to Interest expense as interest is incurred on our variable-rate debt. Amounts reported in Other comprehensive (loss) income related to foreign currency derivative contracts will be reclassified to Non-operating income when the hedged foreign currency contracts are settled. As of June 30, 2025, we estimate that an additional $1.2 million and $4.4 million will be reclassified as Interest expense and Non-operating income, respectively, during the next 12 months.
| Amount of Gain (Loss) on Derivatives Recognized in Income | ||||||||||||||||||||||||||||||||
| Derivatives in Cash Flow Hedging Relationships | Location of Gain (Loss) Recognized in Income | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||||||||
| Foreign currency collars | Non-operating income | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||
| Interest rate swaps | Interest expense | ( | ( | ( | ( | |||||||||||||||||||||||||||
| Derivatives Not in Cash Flow Hedging Relationships | ||||||||||||||||||||||||||||||||
| Foreign currency collars | Other gains and (losses) | ( | ( | |||||||||||||||||||||||||||||
| Total | $ | ( | $ | ( | $ | ( | $ | |||||||||||||||||||||||||
See below for information on our purposes for entering into derivative instruments.
Interest Rate Swaps and Caps
We are exposed to the impact of interest rate changes primarily through our borrowing activities. To limit this exposure, we generally seek long-term debt financing on a fixed-rate basis. However, from time to time, we have obtained, and may in the future obtain, variable-rate (i) non-recourse mortgage loans and (ii) unsecured term loans (Note 10) and, as a result, we have entered into, and may continue to enter into, interest rate swap agreements or interest rate cap agreements with counterparties. Interest rate swaps, which effectively convert the variable-rate debt service obligations of a loan to a fixed rate, are agreements in which one party exchanges a stream of interest payments for a counterparty’s stream of cash flow over a specific period. The notional, or face, amount on which the swaps are based is not exchanged. Interest rate caps limit the effective borrowing rate of variable-rate debt obligations while allowing participants to share in downward shifts in interest rates. Our objective in using these derivatives is to limit our exposure to interest rate movements.
W. P. Carey 6/30/2025 10-Q – 25 | |||||
Notes to Consolidated Financial Statements (Unaudited)
The interest rate swaps that our consolidated subsidiaries had outstanding at June 30, 2025 are summarized as follows (currency in thousands):
| Interest Rate Derivatives | Number of Instruments | Notional Amount | Fair Value at June 30, 2025 (a) | ||||||||||||||||||||
| Designated as Cash Flow Hedging Instruments | |||||||||||||||||||||||
| Interest rate swaps | GBP | $ | ( | ||||||||||||||||||||
| Interest rate swaps | EUR | ( | |||||||||||||||||||||
| Interest rate swap | USD | ||||||||||||||||||||||
| $ | ( | ||||||||||||||||||||||
__________
(a)Fair value amounts are based on the exchange rate of the euro at June 30, 2025, as applicable.
Foreign Currency Collars
We are exposed to foreign currency exchange rate movements, primarily in the euro and, to a lesser extent, the British pound sterling and certain other currencies. In order to hedge certain of our foreign currency cash flow exposures, we enter into foreign currency collars. A foreign currency collar consists of a written call option and a purchased put option to sell the foreign currency at a range of predetermined exchange rates. A foreign currency collar guarantees that the exchange rate of the currency will not fluctuate beyond the range of the options’ strike prices. Our foreign currency collars have maturities of 59 months or less.
The following table presents the foreign currency collars that we had outstanding at June 30, 2025 (currency in thousands):
| Foreign Currency Derivatives | Number of Instruments | Notional Amount | Fair Value at June 30, 2025 | ||||||||||||||||||||
| Designated as Cash Flow Hedging Instruments | |||||||||||||||||||||||
| Foreign currency collars | EUR | $ | ( | ||||||||||||||||||||
| Foreign currency collars | GBP | ( | |||||||||||||||||||||
| Not Designated as Cash Flow Hedging Instruments | |||||||||||||||||||||||
| Foreign currency collars | EUR | ( | |||||||||||||||||||||
| $ | ( | ||||||||||||||||||||||
Credit Risk-Related Contingent Features
We measure our credit exposure on a counterparty basis as the net positive aggregate estimated fair value of our derivatives, net of any collateral received. No collateral was received as of June 30, 2025. At June 30, 2025, our total credit exposure and the maximum exposure to any single counterparty was $0.2 million and $0.1 million, respectively.
Some of the agreements we have with our derivative counterparties contain cross-default provisions that could trigger a declaration of default on our derivative obligations if we default, or are capable of being declared in default, on certain of our indebtedness. At June 30, 2025, we had not been declared in default on any of our derivative obligations. The estimated fair value of our derivatives in a net liability position was $29.0 million and $0.9 million at June 30, 2025 and December 31, 2024, respectively, which included accrued interest and any nonperformance risk adjustments. If we had breached any of these provisions at June 30, 2025 or December 31, 2024, we could have been required to settle our obligations under these agreements at their aggregate termination value of $29.2 million and $0.9 million, respectively.
W. P. Carey 6/30/2025 10-Q – 26 | |||||
Notes to Consolidated Financial Statements (Unaudited)
Net Investment Hedges
Certain borrowings under our Senior Unsecured Notes, Unsecured Revolving Credit Facility, and Unsecured Term Loans (all as defined in Note 10) denominated in euro, British pounds sterling, Norwegian krone, or Japanese yen are designated as, and are effective as, economic hedges of our net investments in foreign entities.
Exchange rate variations impact our financial results because the financial results of our foreign subsidiaries are translated to U.S. dollars each period, with the effect of exchange rate variations being recorded in Other comprehensive (loss) income as part of the cumulative foreign currency translation adjustment. As a result, changes in the value of our designated borrowings under our euro-denominated senior notes and changes in the value of our euro, Japanese yen, and British pound sterling borrowings under our Senior Unsecured Credit Facility, related to changes in the spot rates, will be reported in the same manner as foreign currency translation adjustments, which are recorded in Other comprehensive (loss) income as part of the cumulative foreign currency translation adjustment. Such (losses) gains related to non-derivative net investment hedges were $(329.2 ) million and $37.4 million for the three months ended June 30, 2025 and 2024, respectively, and $(489.7 ) million and $125.8 million for the six months ended June 30, 2025 and 2024, respectively.
Note 10. Debt
Term Loan Agreement
On March 31, 2025, we refinanced our €500.0 million term loan (our “Unsecured Term Loan due 2029”), extending the maturity date by three years to April 24, 2029, with an option to extend the term loan by up to an additional year, subject to certain customary conditions. Pursuant to the credit agreement, the Unsecured Term Loan due 2029 borrowing rate at June 30, 2025 was 80 basis points over . In conjunction with the refinancing of the Unsecured Term Loan due 2029, we executed variable-to-fixed interest rate swaps that fix the floating rate component of the per annum interest rate at 2.00 % through the end of 2027, for a total annual interest rate of approximately 2.80 % as of June 30, 2025 (inclusive of the current spread). The Unsecured Term Loan due 2029 is incorporated into the Senior Unsecured Credit Facility, which is described below.
Senior Unsecured Credit Facility
As of both June 30, 2025 and December 31, 2024, we had a multi-currency senior unsecured credit facility, comprised of (i) a $2.0 270.0 215.0 80 basis points over . On March 31, 2025, we executed variable-to-fixed interest rate swaps that fix the floating rate component of the per annum interest rate on our GBP Term Loan due 2028 at 3.92 % through the end of 2027, for a total annual interest rate of approximately 4.72 % as of June 30, 2025 (inclusive of the current spread). We refer to these term loans collectively as the “Unsecured Term Loans due 2028.” We refer to our Unsecured Term Loan due 2029 and Unsecured Term Loans due 2028 collectively as our “Unsecured Term Loans.” We refer to our Unsecured Revolving Credit Facility and our Unsecured Term Loans collectively as our “Senior Unsecured Credit Facility.”
As of June 30, 2025, the aggregate principal amount (of revolving and term loans) available under the Senior Unsecured Credit Facility was able to be increased up to an amount not to exceed the U.S. dollar equivalent of $4.35 billion, subject to the conditions to increase set forth in our credit agreement.
At June 30, 2025, our Unsecured Revolving Credit Facility had available capacity of approximately $1.3 billion (net of amounts reserved for standby letters of credit totaling $0.5 million). We currently incur an annual facility fee of 0.140 % of the total commitment on our Unsecured Revolving Credit Facility based on (i) our credit ratings of BBB+ and Baa1, (ii) the “Leverage Ratio” (as defined in the credit agreement for our Senior Unsecured Credit Facility), and (iii) the achievement of certain sustainability key performance indicators (“KPIs”) agreed to under the credit agreement, which is included within Interest expense in our consolidated statements of income.
W. P. Carey 6/30/2025 10-Q – 27 | |||||
Notes to Consolidated Financial Statements (Unaudited)
The following table presents a summary of our Senior Unsecured Credit Facility (dollars in thousands):
| Senior Unsecured Credit Facility | Interest Rate at June 30, 2025 (a) | Maturity Date at June 30, 2025 | Principal Outstanding Balance at | |||||||||||||||||||||||
| June 30, 2025 | December 31, 2024 | |||||||||||||||||||||||||
Unsecured Term Loans: (b) | ||||||||||||||||||||||||||
Unsecured Term Loan due 2029 — borrowing in euros (c) | 4/24/2029 | $ | $ | |||||||||||||||||||||||
GBP Term Loan due 2028 — borrowing in British pounds sterling (d) | 2/14/2028 | |||||||||||||||||||||||||
EUR Term Loan due 2028 — borrowing in euros (e) | EURIBOR + | 2/14/2028 | ||||||||||||||||||||||||
Unsecured Revolving Credit Facility: | ||||||||||||||||||||||||||
Borrowing in U.S. dollars (f) | SOFR + | 2/14/2029 | ||||||||||||||||||||||||
Borrowing in Norwegian krone (g) | NIBOR + | 2/14/2029 | ||||||||||||||||||||||||
Borrowing in Japanese yen (h) | TIBOR + | 2/14/2029 | ||||||||||||||||||||||||
| Borrowing in British pounds sterling | N/A | 2/14/2029 | ||||||||||||||||||||||||
| $ | $ | |||||||||||||||||||||||||
__________
(a)The applicable interest rate at June 30, 2025 was based on the credit ratings for our Senior Unsecured Notes of BBB+/Baa1, our Leverage Ratio, and the achievement of certain sustainability KPIs.
(b)Balance excludes unamortized discount of $8.2 million and $5.0 million at June 30, 2025 and December 31, 2024, respectively, and unamortized deferred financing costs of $0.5 million and $0.2 million at June 30, 2025 and December 31, 2024, respectively.
(c)Interest rate is subject to variable-to-fixed interest rate swaps that fix the floating rate component of the per annum interest rate at 2.00 % through December 31, 2027. Upon maturity of the interest rate swaps, the Unsecured Term Loan due 2029 will be subject to a variable interest rate based on EURIBOR.
(d)Interest rate is subject to variable-to-fixed interest rate swaps that fix the floating rate component of the per annum interest rate at 3.92 % through December 31, 2027. Upon maturity of the interest rate swaps, the GBP Term Loan due 2028 will be subject to a variable interest rate based on Sterling Overnight Index Average (SONIA).
(e)EURIBOR means Euro Interbank Offered Rate.
(f)SOFR means Secured Overnight Financing Rate.
(g)NIBOR means Norwegian Interbank Offered Rate.
(h)TIBOR means Tokyo Interbank Offered Rate.
W. P. Carey 6/30/2025 10-Q – 28 | |||||
Notes to Consolidated Financial Statements (Unaudited)
Senior Unsecured Notes
As set forth in the table below, we have euro and U.S. dollar-denominated senior unsecured notes outstanding with an aggregate principal balance outstanding of $6.6 billion at June 30, 2025 (the “Senior Unsecured Notes”).
Interest on the Senior Unsecured Notes is payable annually or semi-annually in arrears. The Senior Unsecured Notes can be redeemed at par within three months of their respective maturities, or we can call the notes at any time for the principal, accrued interest, and a make-whole amount based upon the applicable plus 20 to 35 basis points (except for our 3.410 % Senior Notes due 2029 and 3.700 % Senior Notes due 2032, which are subject to different repayment provisions). The following table presents a summary of our Senior Unsecured Notes outstanding at June 30, 2025 (currency in thousands):
| Principal Amount | Coupon Rate | Maturity Date | Principal Outstanding Balance at | |||||||||||||||||||||||||||||||||||
| Senior Unsecured Notes, net | Issue Date | June 30, 2025 | December 31, 2024 | |||||||||||||||||||||||||||||||||||
| 1/26/2015 | $ | % | 2/1/2025 | $ | $ | |||||||||||||||||||||||||||||||||
| 10/9/2018 | € | % | 4/9/2026 | |||||||||||||||||||||||||||||||||||
| 9/12/2016 | $ | % | 10/1/2026 | |||||||||||||||||||||||||||||||||||
| 3/6/2018 | € | % | 4/15/2027 | |||||||||||||||||||||||||||||||||||
| 9/19/2019 | € | % | 4/15/2028 | |||||||||||||||||||||||||||||||||||
| 6/14/2019 | $ | % | 7/15/2029 | |||||||||||||||||||||||||||||||||||
| 9/28/2022 | € | % | 9/28/2029 | |||||||||||||||||||||||||||||||||||
| 3/8/2021 | € | % | 6/1/2030 | |||||||||||||||||||||||||||||||||||
| 10/14/2020 | $ | % | 2/1/2031 | |||||||||||||||||||||||||||||||||||
| 10/15/2021 | $ | % | 2/1/2032 | |||||||||||||||||||||||||||||||||||
| 5/16/2024 | € | % | 7/23/2032 | |||||||||||||||||||||||||||||||||||
| 9/28/2022 | € | % | 9/28/2032 | |||||||||||||||||||||||||||||||||||
| 2/25/2021 | $ | % | 4/1/2033 | |||||||||||||||||||||||||||||||||||
| 6/28/2024 | $ | % | 6/30/2034 | |||||||||||||||||||||||||||||||||||
| 11/19/2024 | € | % | 11/19/2034 | |||||||||||||||||||||||||||||||||||
| Total principal outstanding | ||||||||||||||||||||||||||||||||||||||
| Unamortized discount | ( | ( | ||||||||||||||||||||||||||||||||||||
| Unamortized deferred financing costs | ( | ( | ||||||||||||||||||||||||||||||||||||
| Total | $ | $ | ||||||||||||||||||||||||||||||||||||
__________
(a)In February 2025, we repaid our $450 million of 4.000 % Senior Notes due 2025 at maturity.
On July 10, 2025, we completed an underwritten public offering of $400.0 million of 4.650 % Senior Notes due 2030, at a price of 99.088 % of par value. These 4.650 % Senior Notes due 2030 have a five-year term and are scheduled to mature on July 15, 2030 (Note 15).
Covenants
The credit agreements for our Senior Unsecured Credit Facility, each of the Senior Unsecured Notes, and certain of our non-recourse mortgage loan agreements include customary financial maintenance covenants that require us to maintain certain ratios and benchmarks at the end of each quarter. There have been no significant changes in our debt covenants from what was disclosed in the 2024 Annual Report. We were in compliance with all of these covenants at June 30, 2025.
Non-Recourse Mortgages
At June 30, 2025, the weighted-average interest rate for our total non-recourse mortgage notes payable was 4.9 % (all of which had fixed rates), with maturity dates ranging from September 2025 to February 2033.
W. P. Carey 6/30/2025 10-Q – 29 | |||||
Notes to Consolidated Financial Statements (Unaudited)
Repayments
During the six months ended June 30, 2025, we repaid non-recourse mortgage loans at or close to maturity with an aggregate principal balance of approximately $173.9 million. The weighted-average interest rate for these non-recourse mortgage loans on their respective dates of repayment was 4.3 %.
Foreign Currency Exchange Rate Impact
During the six months ended June 30, 2025, the U.S. dollar weakened against the euro, resulting in an increase of $621.2 million in the aggregate carrying values of our Non-recourse mortgages, net, Senior Unsecured Credit Facility, and Senior Unsecured Notes, net from December 31, 2024 to June 30, 2025.
Scheduled Debt Principal Payments
Scheduled debt principal payments as of June 30, 2025 are as follows (in thousands):
| Years Ending December 31, | Total | |||||||
| 2025 (remainder) | $ | |||||||
| 2026 | ||||||||
| 2027 | ||||||||
| 2028 | ||||||||
| 2029 | ||||||||
| Thereafter through 2034 | ||||||||
| Total principal payments | ||||||||
| Unamortized discount, net | ( | |||||||
| Unamortized deferred financing costs | ( | |||||||
| Total | $ | |||||||
Certain amounts in the table above are based on the applicable foreign currency exchange rate at June 30, 2025.
Note 11. Commitments and Contingencies
At June 30, 2025, we were not involved in any material litigation. Various claims and lawsuits arising in the normal course of business are pending against us. The results of these proceedings are not expected to have a material adverse effect on our consolidated financial position or results of operations. In addition, we capitalize our captive insurance company in accordance with applicable regulatory requirements (Note 3).
Note 12. Stock-Based Compensation and Equity
Stock-Based Compensation
We maintain several stock-based compensation plans, which are more fully described in the 2024 Annual Report. There have been no significant changes to the terms and conditions of any of our stock-based compensation plans or arrangements during the three months ended June 30, 2025. We recorded stock-based compensation expense of $10.9 million and $8.9 million during the three months ended June 30, 2025 and 2024, respectively, and $20.1 million and $17.8 million during the six months ended June 30, 2025 and 2024, respectively, which was included in Stock-based compensation expense in the consolidated financial statements.
W. P. Carey 6/30/2025 10-Q – 30 | |||||
Notes to Consolidated Financial Statements (Unaudited)
Restricted and Conditional Awards
Nonvested restricted share awards (“RSAs”), restricted share units (“RSUs”), and performance share units (“PSUs”) at June 30, 2025 and changes during the six months ended June 30, 2025 were as follows:
| RSA and RSU Awards | PSU Awards | ||||||||||||||||||||||
| Shares | Weighted-Average Grant Date Fair Value | Shares | Weighted-Average Grant Date Fair Value | ||||||||||||||||||||
Nonvested at January 1, 2025 | $ | $ | |||||||||||||||||||||
Granted (a) | |||||||||||||||||||||||
Vested (b) | ( | ( | |||||||||||||||||||||
| Forfeited | ( | ( | |||||||||||||||||||||
Adjustment (c) | |||||||||||||||||||||||
Nonvested at June 30, 2025 (d) | $ | $ | |||||||||||||||||||||
__________
(a)The grant date fair value of RSAs and RSUs reflect our stock price on the date of grant on a one -for-one basis. The grant date fair value of PSUs was determined utilizing a Monte Carlo simulation model to generate an estimate of our future stock price over the three-year performance period. To estimate the fair value of PSUs granted during the six months ended June 30, 2025, we used a risk-free interest rate of 4.3 %, an expected volatility rate of 21.5 %, and assumed a dividend yield of zero .
(b)The grant date fair value of shares vested during the six months ended June 30, 2025 was $41.3 million. Employees and non-employee directors have the option to take immediate delivery of the shares upon vesting or defer receipt to a future date pursuant to previously made deferral elections. At June 30, 2025 and December 31, 2024, we had an obligation to issue 1,608,988 and 1,391,456 shares, respectively, of our common stock underlying such deferred awards, which is recorded within Total stockholders’ equity as a Deferred compensation obligation of $97.0 million and $78.5 million, respectively.
(c)Vesting and payment of the PSUs is conditioned upon certain company and/or market performance goals being met during the relevant three-year performance period. The ultimate number of PSUs to be vested will depend on the extent to which the performance goals are met and can range from zero to three times the original awards. As a result, we recorded adjustments at June 30, 2025 to reflect the number of shares expected to be issued when the PSUs vest.
(d)At June 30, 2025, total unrecognized compensation expense related to these awards was approximately $55.6 million, with an aggregate weighted-average remaining term of 2.0 years.
Earnings Per Share
The following table summarizes basic and diluted earnings (dollars in thousands):
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Net income — basic and diluted | $ | $ | $ | $ | |||||||||||||||||||
| Weighted-average shares outstanding — basic | |||||||||||||||||||||||
| Effect of dilutive securities | |||||||||||||||||||||||
| Weighted-average shares outstanding — diluted | |||||||||||||||||||||||
For the three and six months ended June 30, 2025 and 2024, potentially dilutive securities excluded from the computation of diluted earnings per share were insignificant.
W. P. Carey 6/30/2025 10-Q – 31 | |||||
Notes to Consolidated Financial Statements (Unaudited)
ATM Program and Forward Equity
On May 1, 2025, we established a continuous “at-the-market” offering program (“ATM Program”) with a syndicate of banks, pursuant to which shares of our common stock having an aggregate gross sales price of up to $1.25 billion may be sold (i) directly through or to the banks acting as sales agents or as principal for their own accounts or (ii) through or to participating banks or their affiliates acting as forward sellers on behalf of any forward purchasers pursuant to a forward sale agreement. Effective as of that date, we terminated a prior ATM Program that was established on May 2, 2022, under which we were able to offer and sell shares of our common stock from time to time, up to an aggregate gross sales price of $1.0 billion, with a syndicate of banks.
We did not issue any shares of our common stock pursuant to our current or prior ATM Programs during the reporting period.
Reclassifications Out of Accumulated Other Comprehensive Loss
The following tables present a reconciliation of changes in Accumulated other comprehensive loss by component for the periods presented (in thousands):
| Three Months Ended June 30, 2025 | |||||||||||||||||
| Gains and (Losses) on Derivative Instruments | Foreign Currency Translation Adjustments | Total | |||||||||||||||
| Beginning balance | $ | $ | ( | $ | ( | ||||||||||||
| Other comprehensive loss before reclassifications | ( | ( | |||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to: | |||||||||||||||||
| Non-operating income | ( | ( | |||||||||||||||
| Interest expense | ( | ( | |||||||||||||||
| Total | ( | ( | |||||||||||||||
| Net current period other comprehensive loss | ( | ( | |||||||||||||||
| Net current period other comprehensive income attributable to noncontrolling interests | ( | ( | |||||||||||||||
| Ending balance | $ | ( | $ | ( | $ | ( | |||||||||||
| Three Months Ended June 30, 2024 | |||||||||||||||||
| Gains and (Losses) on Derivative Instruments | Foreign Currency Translation Adjustments | Total | |||||||||||||||
| Beginning balance | $ | $ | ( | $ | ( | ||||||||||||
| Other comprehensive income before reclassifications | ( | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to: | |||||||||||||||||
| Non-operating income | ( | ( | |||||||||||||||
| Interest expense | ( | ( | |||||||||||||||
| Total | ( | ( | |||||||||||||||
| Net current period other comprehensive loss | ( | ( | ( | ||||||||||||||
| Net current period other comprehensive loss attributable to noncontrolling interests | |||||||||||||||||
| Ending balance | $ | $ | ( | $ | ( | ||||||||||||
W. P. Carey 6/30/2025 10-Q – 32 | |||||
Notes to Consolidated Financial Statements (Unaudited)
| Six Months Ended June 30, 2025 | |||||||||||||||||
| Gains and (Losses) on Derivative Instruments | Foreign Currency Translation Adjustments | Total | |||||||||||||||
| Beginning balance | $ | $ | ( | $ | ( | ||||||||||||
| Other comprehensive loss before reclassifications | ( | ( | |||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to: | |||||||||||||||||
| Non-operating income | ( | ( | |||||||||||||||
| Interest expense | ( | ( | |||||||||||||||
| Total | ( | ( | |||||||||||||||
| Net current period other comprehensive loss | ( | ( | |||||||||||||||
| Net current period other comprehensive income attributable to noncontrolling interests | ( | ( | |||||||||||||||
| Ending balance | $ | ( | $ | ( | $ | ( | |||||||||||
| Six Months Ended June 30, 2024 | |||||||||||||||||
| Gains and (Losses) on Derivative Instruments | Foreign Currency Translation Adjustments | Total | |||||||||||||||
| Beginning balance | $ | $ | ( | $ | ( | ||||||||||||
| Other comprehensive income before reclassifications | ( | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to: | |||||||||||||||||
| Non-operating income | ( | ( | |||||||||||||||
| Interest expense | ( | ( | |||||||||||||||
| Total | ( | ( | |||||||||||||||
| Net current period other comprehensive income | ( | ||||||||||||||||
| Net current period other comprehensive loss attributable to noncontrolling interests | |||||||||||||||||
| Ending balance | $ | $ | ( | $ | ( | ||||||||||||
See Note 9 for additional information on our derivatives activity recognized within Other comprehensive (loss) income for the periods presented.
Dividends Declared
During the second quarter of 2025, our board of directors declared a quarterly dividend of $0.900 per share, which was paid on July 15, 2025 to stockholders of record as of June 30, 2025.
During the six months ended June 30, 2025, we declared dividends totaling $1.790 per share.
Note 13. Income Taxes
We elected to be treated as a REIT and believe that we have been organized and have operated in such a manner to maintain our qualification as a REIT for federal and state income tax purposes. As a REIT, we are generally not subject to corporate level federal income taxes on earnings distributed to our stockholders. Since inception, we have distributed at least 100% of our taxable income annually. Accordingly, we have not included any provisions for federal income taxes related to the REIT in the accompanying consolidated financial statements for the three and six months ended June 30, 2025 and 2024.
Certain of our subsidiaries have elected taxable REIT subsidiary (“TRS”) status. A TRS may provide certain services considered impermissible for REITs and may hold assets that REITs may not hold directly. We also own real property in jurisdictions outside the United States through foreign subsidiaries and are subject to income taxes on our pre-tax income earned from properties in such countries. The accompanying consolidated financial statements include an interim tax provision for our TRSs and foreign subsidiaries, as necessary, for the three and six months ended June 30, 2025 and 2024.
W. P. Carey 6/30/2025 10-Q – 33 | |||||
Notes to Consolidated Financial Statements (Unaudited)
Current income tax expense was $10.3 million and $7.6 million for the three months ended June 30, 2025 and 2024, respectively, and $22.7 million and $17.7 million for the six months ended June 30, 2025 and 2024, respectively. Deferred income tax (expense) benefit was $(2.8 ) million and $1.4 million for the three months ended June 30, 2025 and 2024, respectively, and $(2.0 ) million and $2.8 million for the six months ended June 30, 2025 and 2024, respectively.
Note 14. Property Dispositions
All property dispositions are also discussed in Note 4 and Note 5.
2025 — During the three and six months ended June 30, 2025, we sold 46 and 55 properties, respectively, for total proceeds, net of selling costs, of $360.6 million and $487.3 million, respectively, and recognized a net gain on these sales totaling $52.8 million and $96.6 million, respectively, (inclusive of income taxes totaling $5.1 million and $5.0 million, respectively, recognized upon sale).
This disposition activity for both the three and six months ended June 30, 2025 includes the sale of ten 110.4 13.9
2024 — During the three and six months ended June 30, 2024, we sold 12 and 165 properties, respectively, for total proceeds, net of selling costs, of $133.7 million and $1.0 billion, respectively, and recognized a net gain on these sales totaling $39.4 million and $54.8 million, respectively, (inclusive of income taxes totaling less than $0.1 million and $3.1 million, respectively, recognized upon sale). One of the properties sold during the second quarter of 2024 was a hotel operating property.
Note 15. Subsequent Events
Issuance of Senior Unsecured Notes
On July 10, 2025, we completed an underwritten public offering of $400.0 million of 4.650 % Senior Notes due 2030, at a price of 99.088 % of par value. These 4.650 % Senior Notes due 2030 have a five-year term and are scheduled to mature on July 15, 2030 (Note 10).
Acquisitions
In July 2025, we completed four acquisitions totaling approximately $227.2 million. They are as follows:
•$103.3 million for six industrial properties in Europe (three in the United Kingdom, two in the Czech Republic, and
•$49.6 million for an industrial outdoor storage facility in South San Francisco, California;
•$6.0 million for three retail stores in the United States; and
•$68.3 million for two supermarkets and their associated gas stations in Loughborough and Ilkeston, United Kingdom.
Dispositions
In July 2025, we sold six properties for gross proceeds totaling approximately $71.0 million. Five of these properties were self-storage operating properties in the United States for gross proceeds totaling approximately $63.5 million, which were classified as held for sale as of June 30, 2025 (Note 4).
Mortgage Loan Repayments
In July 2025, we repaid at maturity one non-recourse mortgage loan encumbering ten self-storage operating properties totaling approximately $35.6 million.
W. P. Carey 6/30/2025 10-Q – 34 | |||||
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Management’s Discussion and Analysis of Financial Condition and Results of Operations is intended to assist in understanding our financial statements and the reasons for changes in certain key components of our financial statements from period to period. This item also provides our perspective on our financial position and liquidity, as well as certain other factors that may affect our future results. Our Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the 2024 Annual Report and subsequent reports filed under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Refer to Item 1 of the 2024 Annual Report for a description of our business.
Significant Developments
Issuance of Senior Unsecured Notes
On July 10, 2025, we completed an underwritten public offering of $400.0 million of 4.650% Senior Notes due 2030, at a price of 99.088% of par value. These 4.650% Senior Notes due 2030 have a five-year term and are scheduled to mature on July 15, 2030 (Note 10, Note 15).
Financial Highlights
During the six months ended June 30, 2025, we completed the following (as further described in the consolidated financial statements):
Real Estate
Investments
•We acquired ten investments totaling $800.6 million (Note 4, Note 5).
•We completed one construction project at a cost of $4.8 million (Note 4).
•We acquired a 47.50% ownership interest in the partnership that owns the Las Vegas Retail Complex for $5.0 million (Note 7). In addition, we funded approximately $5.2 million for construction loans for projects in Las Vegas, Nevada, during the six months ended June 30, 2025 (Note 5, Note 7).
•We committed to fund five new construction projects totaling $167.2 million (on a consolidated basis). We currently expect to complete these projects in 2025, 2026, and 2027 (Note 4, Note 5).
Dispositions
•We disposed of 55 properties for total proceeds, net of selling costs, of $487.3 million, including ten self-storage operating properties for total proceeds, net of selling costs, of $110.4 million (Note 14).
Financing and Capital Markets Transactions
•In February 2025, we repaid our $450 million of 4.000% Senior Notes due 2025 at maturity (Note 10).
•On March 31, 2025, we refinanced our €500.0 million term loan, extending the maturity date by three years to April 2029 (our Unsecured Term Loan due 2029). In conjunction with this refinancing, we executed variable-to-fixed interest rate swaps that fix the floating rate component of the per annum interest rate at 2.00% through the end of 2027, for a total annual interest rate of approximately 2.80% as of June 30, 2025 (inclusive of the current spread) (Note 10).
•On March 31, 2025, we executed variable-to-fixed interest rate swaps that fix the floating rate component of the per annum interest rate on our £270.0 million GBP Term Loan due 2028 at 3.92% through the end of 2027, for a total annual interest rate of approximately 4.72% as of June 30, 2025 (inclusive of the current spread) (Note 10).
•We repaid non-recourse mortgage debt outstanding totaling $173.9 million with a weighted-average interest rate of 4.3% (Note 10).
Dividends to Stockholders
We declared cash dividends totaling $1.790 per share during the six months ended June 30, 2025, comprised of two quarterly dividends per share of $0.900 and $0.890 (Note 12).
W. P. Carey 6/30/2025 10-Q – 35 | |||||
Consolidated Results
(in thousands, except shares)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Total revenues | $ | 430,777 | $ | 389,672 | $ | 840,635 | $ | 779,470 | |||||||||||||||
| Net income attributable to W. P. Carey | 51,220 | 142,895 | 177,044 | 302,118 | |||||||||||||||||||
| Dividends declared | 198,794 | 192,046 | 395,392 | 382,993 | |||||||||||||||||||
Net cash provided by operating activities (a) | 677,196 | 1,256,595 | |||||||||||||||||||||
| Net cash used in investing activities | (541,846) | (387,164) | |||||||||||||||||||||
| Net cash used in financing activities | (420,252) | (318,016) | |||||||||||||||||||||
Supplemental financial measures (b): | |||||||||||||||||||||||
| Adjusted funds from operations attributable to W. P. Carey (AFFO) | 282,670 | 257,099 | 540,490 | 508,991 | |||||||||||||||||||
| Diluted weighted-average shares outstanding | 220,874,935 | 220,214,118 | 220,913,225 | 220,261,525 | |||||||||||||||||||
__________
(a)Amounts for the six months ended June 30, 2025 and 2024 include $178.2 million and $807.1 million, respectively, of proceeds from the sales of net investments in sales-type leases (primarily the Grupo Memora portfolio sold during the current-year period and the U-Haul and State of Andalusia portfolios sold during the prior-year period) (Note 5). Such proceeds are included within Net cash provided by operating activities in accordance with ASC 842, Leases.
(b)We consider Adjusted funds from operations (“AFFO”), a supplemental measure that is not defined by GAAP (a “non-GAAP measure”), to be an important measure in the evaluation of our operating performance. See Supplemental Financial Measures below for our definition of this non-GAAP measure and a reconciliation to its most directly comparable GAAP measure.
Revenues
Total revenues increased for the three and six months ended June 30, 2025 as compared to the same periods in 2024, primarily due to net investment activity and rent escalations.
Net Income Attributable to W. P. Carey
Net income attributable to W. P. Carey decreased for the three and six months ended June 30, 2025 as compared to the same periods in 2024, primarily due to non-cash unrealized losses recognized on our investment in shares of Lineage during the current-year periods (Note 8), higher losses from remeasurement of foreign debt, and a higher non-cash allowance for credit loss on finance leases and loans receivable, partially offset by higher gain on sale of real estate.
AFFO
AFFO increased for the three and six months ended June 30, 2025 as compared to the same periods in 2024, primarily due to the accretive impact of net investment activity, rent escalations, and leasing activity.
W. P. Carey 6/30/2025 10-Q – 36 | |||||
Portfolio Overview
Our portfolio is comprised of operationally-critical, commercial real estate assets net leased to tenants located primarily in the United States and Northern and Western Europe. We invest in high-quality single tenant industrial, warehouse, and retail properties subject to long-term net leases with built-in rent escalators. Portfolio information is provided on a pro rata basis, unless otherwise noted below, to better illustrate the economic impact of our various net-leased jointly owned investments. See Terms and Definitions below for a description of pro rata amounts.
Portfolio Summary
| Net-leased Properties | June 30, 2025 | December 31, 2024 | |||||||||
| ABR (in thousands) | $ | 1,469,552 | $ | 1,337,172 | |||||||
| Number of net-leased properties | 1,600 | 1,555 | |||||||||
| Number of tenants | 370 | 355 | |||||||||
| Total square footage (in thousands) | 177,985 | 176,420 | |||||||||
| Occupancy | 98.2 | % | 98.6 | % | |||||||
| Weighted-average lease term (in years) | 12.1 | 12.3 | |||||||||
| Operating Properties | |||||||||||
| Number of operating properties: | 72 | 84 | |||||||||
| Number of self-storage operating properties | 66 | 78 | |||||||||
| Number of hotel operating properties | 4 | 4 | |||||||||
| Number of student housing operating properties | 2 | 2 | |||||||||
| Occupancy (self-storage operating properties) | 90.6 | % | 89.6 | % | |||||||
| Number of countries | 26 | 26 | |||||||||
| Total assets (in thousands) | $ | 17,998,197 | $ | 17,535,024 | |||||||
| Net investments in real estate (in thousands) | 15,340,146 | 14,580,475 | |||||||||
| Six Months Ended June 30, | |||||||||||
| 2025 | 2024 | ||||||||||
Acquisition volume (in millions) (a) | $ | 810.8 | $ | 540.1 | |||||||
Construction projects completed (in millions) | 4.8 | 33.2 | |||||||||
| Average U.S. dollar/euro exchange rate | 1.0932 | 1.0811 | |||||||||
| Average U.S. dollar/British pound sterling exchange rate | 1.2972 | 1.2651 | |||||||||
_________
(a)Amounts for the six months ended June 30, 2025 and 2024 include $3.2 million and $4.9 million, respectively, of funding for a construction loan accounted for as an equity investment (Note 7). Amount for the six months ended June 30, 2025 includes $5.0 million to acquire a 47.50% ownership interest in that equity investment (Note 7). Amount for the six months ended June 30, 2025 includes $2.0 million of funding for two construction loans accounted for as secured loans receivable (Note 5). Amounts for the six months ended June 30, 2025 and 2024 include $258.0 million and $83.9 million, respectively, of sale-leasebacks classified as loans receivable (Note 5).
W. P. Carey 6/30/2025 10-Q – 37 | |||||
Net-Leased Portfolio
The tables below represent information about our net-leased portfolio at June 30, 2025 on a pro rata basis and, accordingly, exclude all operating properties. See Terms and Definitions below for a description of pro rata amounts and ABR.
Top Ten Tenants by ABR
(dollars in thousands)
| Tenant/Lease Guarantor | Description | Number of Properties | ABR | ABR Percent | Weighted-Average Lease Term (Years) | |||||||||||||||||||||||||||
| Extra Space Storage, Inc. | Net lease self-storage properties in the U.S. leased to publicly traded self-storage REIT | 41 | $ | 40,139 | 2.7 | % | 24.2 | |||||||||||||||||||||||||
Apotex Pharmaceutical Holdings Inc. (a) | Pharmaceutical R&D and manufacturing properties in the Greater Toronto Area leased to generic drug manufacturer | 11 | 33,448 | 2.3 | % | 17.7 | ||||||||||||||||||||||||||
Metro Cash & Carry Italia S.p.A. (b) | Business-to-business retail stores in Italy leased to cash and carry wholesaler | 19 | 30,767 | 2.1 | % | 4.9 | ||||||||||||||||||||||||||
Fortenova Grupa d.d. (b) | Grocery stores and one warehouse in Croatia leased to European food retailer | 19 | 28,332 | 1.9 | % | 8.8 | ||||||||||||||||||||||||||
OBI Group (b) | Retail properties in Poland leased to German DIY retailer | 26 | 27,395 | 1.9 | % | 5.8 | ||||||||||||||||||||||||||
Hellweg Die Profi-Baumärkte GmbH & Co. KG (b) (c) | Retail properties in Germany leased to German DIY retailer | 31 | 26,451 | 1.8 | % | 18.7 | ||||||||||||||||||||||||||
TI Automotive (formerly ABC Technologies Holdings Inc.) (a) (d) | Automotive parts manufacturing properties in the U.S., Canada and Mexico leased to OEM supplier | 22 | 25,510 | 1.8 | % | 17.8 | ||||||||||||||||||||||||||
Fedrigoni S.p.A (b) | Industrial and warehouse facilities in Germany, Italy and Spain leased to global manufacturer of premium packaging and labels | 16 | 25,033 | 1.7 | % | 18.4 | ||||||||||||||||||||||||||
Eroski Sociedad Cooperativa (b) | Grocery stores and warehouses in Spain leased to Spanish food retailer | 63 | 23,811 | 1.6 | % | 10.7 | ||||||||||||||||||||||||||
| Nord Anglia Education, Inc. | K-12 private schools in Orlando, Miami and Houston leased to international day and boarding school operator | 3 | 23,599 | 1.6 | % | 18.2 | ||||||||||||||||||||||||||
| 251 | $ | 284,485 | 19.4 | % | 14.8 | |||||||||||||||||||||||||||
__________
(a)ABR from these properties is denominated in U.S. dollars.
(b)ABR amounts are subject to fluctuations in foreign currency exchange rates.
(c)On March 28, 2025, we executed an agreement giving us the right to terminate the leases at (i) seven properties on September 15, 2025 with ABR totaling $5.2 million and (ii) five properties on September 15, 2026 with ABR totaling $3.5 million.
(d)Of the 22 properties leased to TI Automotive, nine are located in Canada, seven are located in the United States, and six are located in Mexico.
W. P. Carey 6/30/2025 10-Q – 38 | |||||
Portfolio Diversification by Geography
(in thousands, except percentages)
| Region | ABR | ABR Percent | Square Footage (a) | Square Footage Percent | ||||||||||||||||||||||
| United States | ||||||||||||||||||||||||||
| Midwest | ||||||||||||||||||||||||||
| Illinois | $ | 63,025 | 4.3 | % | 9,474 | 5.3 | % | |||||||||||||||||||
| Ohio | 42,946 | 2.9 | % | 8,384 | 4.7 | % | ||||||||||||||||||||
| Indiana | 39,978 | 2.7 | % | 6,162 | 3.5 | % | ||||||||||||||||||||
| Michigan | 26,827 | 1.8 | % | 4,488 | 2.5 | % | ||||||||||||||||||||
| Wisconsin | 19,609 | 1.4 | % | 3,340 | 1.9 | % | ||||||||||||||||||||
Other (b) | 50,803 | 3.5 | % | 6,918 | 3.9 | % | ||||||||||||||||||||
| Total Midwest | 243,188 | 16.6 | % | 38,766 | 21.8 | % | ||||||||||||||||||||
| South | ||||||||||||||||||||||||||
| Texas | 86,041 | 5.9 | % | 10,780 | 6.0 | % | ||||||||||||||||||||
| Florida | 42,845 | 2.9 | % | 3,684 | 2.1 | % | ||||||||||||||||||||
| Tennessee | 39,007 | 2.7 | % | 4,572 | 2.6 | % | ||||||||||||||||||||
| Georgia | 25,300 | 1.7 | % | 4,378 | 2.4 | % | ||||||||||||||||||||
| Alabama | 21,171 | 1.4 | % | 3,504 | 2.0 | % | ||||||||||||||||||||
Other (b) | 26,469 | 1.8 | % | 3,024 | 1.7 | % | ||||||||||||||||||||
| Total South | 240,833 | 16.4 | % | 29,942 | 16.8 | % | ||||||||||||||||||||
| East | ||||||||||||||||||||||||||
| North Carolina | 40,969 | 2.8 | % | 8,858 | 5.0 | % | ||||||||||||||||||||
| Pennsylvania | 32,542 | 2.2 | % | 3,416 | 1.9 | % | ||||||||||||||||||||
| Kentucky | 29,249 | 2.0 | % | 4,485 | 2.5 | % | ||||||||||||||||||||
| New York | 22,561 | 1.5 | % | 2,284 | 1.3 | % | ||||||||||||||||||||
| New Jersey | 22,330 | 1.5 | % | 1,008 | 0.5 | % | ||||||||||||||||||||
| Massachusetts | 20,310 | 1.4 | % | 1,216 | 0.7 | % | ||||||||||||||||||||
| South Carolina | 19,428 | 1.3 | % | 4,485 | 2.5 | % | ||||||||||||||||||||
Other (b) | 34,978 | 2.4 | % | 5,287 | 3.0 | % | ||||||||||||||||||||
| Total East | 222,367 | 15.1 | % | 31,039 | 17.4 | % | ||||||||||||||||||||
| West | ||||||||||||||||||||||||||
| California | 71,578 | 4.9 | % | 5,282 | 3.0 | % | ||||||||||||||||||||
| Arizona | 22,299 | 1.5 | % | 2,372 | 1.3 | % | ||||||||||||||||||||
| Nevada | 17,714 | 1.2 | % | 485 | 0.3 | % | ||||||||||||||||||||
| Utah | 14,860 | 1.0 | % | 2,021 | 1.1 | % | ||||||||||||||||||||
Other (b) | 51,676 | 3.5 | % | 4,721 | 2.7 | % | ||||||||||||||||||||
| Total West | 178,127 | 12.1 | % | 14,881 | 8.4 | % | ||||||||||||||||||||
| United States Total | 884,515 | 60.2 | % | 114,628 | 64.4 | % | ||||||||||||||||||||
| International | ||||||||||||||||||||||||||
| Italy | 69,128 | 4.7 | % | 8,902 | 5.0 | % | ||||||||||||||||||||
| The Netherlands | 66,864 | 4.6 | % | 6,784 | 3.8 | % | ||||||||||||||||||||
| Poland | 65,929 | 4.5 | % | 8,460 | 4.8 | % | ||||||||||||||||||||
| Germany | 56,422 | 3.8 | % | 6,114 | 3.4 | % | ||||||||||||||||||||
Canada (c) | 56,261 | 3.8 | % | 5,450 | 3.1 | % | ||||||||||||||||||||
| United Kingdom | 54,369 | 3.7 | % | 4,412 | 2.5 | % | ||||||||||||||||||||
| Spain | 34,042 | 2.3 | % | 3,266 | 1.8 | % | ||||||||||||||||||||
| Croatia | 29,254 | 2.0 | % | 2,063 | 1.2 | % | ||||||||||||||||||||
| Denmark | 27,571 | 1.9 | % | 3,002 | 1.7 | % | ||||||||||||||||||||
| France | 25,243 | 1.7 | % | 1,679 | 0.9 | % | ||||||||||||||||||||
Mexico (d) | 22,541 | 1.5 | % | 3,604 | 2.0 | % | ||||||||||||||||||||
| Lithuania | 15,117 | 1.0 | % | 1,640 | 0.9 | % | ||||||||||||||||||||
Other (e) | 62,296 | 4.3 | % | 7,981 | 4.5 | % | ||||||||||||||||||||
| International Total | 585,037 | 39.8 | % | 63,357 | 35.6 | % | ||||||||||||||||||||
| Total | $ | 1,469,552 | 100.0 | % | 177,985 | 100.0 | % | |||||||||||||||||||
W. P. Carey 6/30/2025 10-Q – 39 | |||||
Portfolio Diversification by Property Type
(in thousands, except percentages)
| Property Type | ABR | ABR Percent | Square Footage (a) | Square Footage Percent | ||||||||||||||||||||||
| Industrial | $ | 554,437 | 37.7 | % | 79,252 | 44.5 | % | |||||||||||||||||||
| Warehouse | 385,013 | 26.2 | % | 65,461 | 36.8 | % | ||||||||||||||||||||
Retail (f) | 328,182 | 22.3 | % | 22,127 | 12.4 | % | ||||||||||||||||||||
Other (g) | 201,920 | 13.8 | % | 11,145 | 6.3 | % | ||||||||||||||||||||
| Total | $ | 1,469,552 | 100.0 | % | 177,985 | 100.0 | % | |||||||||||||||||||
__________
(a)Includes square footage for any vacant properties.
(b)Other properties within Midwest include assets in Iowa, Minnesota, Kansas, Missouri, Nebraska, South Dakota, and North Dakota. Other properties within South include assets in Arkansas, Louisiana, Oklahoma, and Mississippi. Other properties within East include assets in Virginia, Maryland, Connecticut, West Virginia, New Hampshire, and Maine. Other properties within West include assets in Oregon, Colorado, Washington, Montana, Hawaii, Idaho, Wyoming, and New Mexico.
(c)$50.3 million (89%) of ABR from properties in Canada is denominated in U.S. dollars, with the balance denominated in Canadian dollars.
(d)All ABR from properties in Mexico is denominated in U.S. dollars.
(e)Includes assets in Belgium, Hungary, Norway, Mauritius, Slovakia, Portugal, the Czech Republic, Austria, Sweden, Latvia, Japan, Finland, and Estonia.
(f)Includes automotive dealerships.
(g)Includes ABR from tenants within the following property types: education facility, self-storage (net lease), specialty, laboratory, research and development, hotel (net lease), office, and land.
W. P. Carey 6/30/2025 10-Q – 40 | |||||
Portfolio Diversification by Tenant Industry
(in thousands, except percentages)
Industry Type (a) | ABR | ABR Percent | Square Footage | Square Footage Percent | ||||||||||||||||||||||
| Food Retail | $ | 151,160 | 10.3 | % | 11,744 | 6.6 | % | |||||||||||||||||||
| Packaged Foods & Meats | 134,038 | 9.1 | % | 16,478 | 9.3 | % | ||||||||||||||||||||
| Home Improvement Retail | 105,607 | 7.2 | % | 12,823 | 7.2 | % | ||||||||||||||||||||
| Auto Parts & Equipment | 83,231 | 5.7 | % | 12,471 | 7.0 | % | ||||||||||||||||||||
| Automotive Retail | 77,345 | 5.3 | % | 7,038 | 4.0 | % | ||||||||||||||||||||
| Education Services | 59,787 | 4.1 | % | 2,778 | 1.6 | % | ||||||||||||||||||||
| Pharmaceuticals | 47,850 | 3.3 | % | 3,076 | 1.7 | % | ||||||||||||||||||||
| Air Freight & Logistics | 46,366 | 3.1 | % | 7,075 | 4.0 | % | ||||||||||||||||||||
| Trading Companies & Distributors | 41,782 | 2.8 | % | 9,486 | 5.3 | % | ||||||||||||||||||||
| Self-Storage REITs | 40,139 | 2.7 | % | 3,082 | 1.7 | % | ||||||||||||||||||||
| Building Products | 35,315 | 2.4 | % | 7,643 | 4.3 | % | ||||||||||||||||||||
| Industrial Machinery | 32,347 | 2.2 | % | 5,045 | 2.8 | % | ||||||||||||||||||||
| Metal & Glass Containers | 31,465 | 2.1 | % | 4,301 | 2.4 | % | ||||||||||||||||||||
| Other Specialty Retail | 28,845 | 2.0 | % | 3,233 | 1.8 | % | ||||||||||||||||||||
| Paper Products | 25,033 | 1.7 | % | 4,458 | 2.5 | % | ||||||||||||||||||||
| Specialty Chemicals | 24,393 | 1.7 | % | 4,303 | 2.4 | % | ||||||||||||||||||||
| Diversified Support Services | 23,909 | 1.6 | % | 2,372 | 1.3 | % | ||||||||||||||||||||
| Construction Materials | 23,575 | 1.6 | % | 3,781 | 2.1 | % | ||||||||||||||||||||
| Construction Machinery | 18,832 | 1.3 | % | 2,528 | 1.4 | % | ||||||||||||||||||||
| Food Distributors | 18,339 | 1.2 | % | 1,552 | 0.9 | % | ||||||||||||||||||||
| Diversified Metals | 17,979 | 1.2 | % | 3,622 | 2.0 | % | ||||||||||||||||||||
| Leisure Facilities | 17,593 | 1.2 | % | 645 | 0.4 | % | ||||||||||||||||||||
| Consumer Staples Merchandise Retail | 17,036 | 1.2 | % | 1,456 | 0.8 | % | ||||||||||||||||||||
| Hotels & Resorts | 16,329 | 1.1 | % | 1,073 | 0.6 | % | ||||||||||||||||||||
| Commodity Chemicals | 16,192 | 1.1 | % | 2,493 | 1.4 | % | ||||||||||||||||||||
| Passenger Ground Transportation | 15,517 | 1.1 | % | 780 | 0.5 | % | ||||||||||||||||||||
Other (62 industries, each <1% ABR) (b) | 319,548 | 21.7 | % | 42,649 | 24.0 | % | ||||||||||||||||||||
| Total | $ | 1,469,552 | 100.0 | % | 177,985 | 100.0 | % | |||||||||||||||||||
__________
(a)Industry classification is based on the Global Industry Classification Standard (GICS) framework.
(b)Includes square footage for vacant properties.
W. P. Carey 6/30/2025 10-Q – 41 | |||||
Lease Expirations
(in thousands, except percentages, number of leases, and number of tenants)
Year of Lease Expiration (a) | Number of Leases Expiring | Number of Tenants with Leases Expiring | ABR | ABR Percent | Square Footage | Square Footage Percent | ||||||||||||||||||||||||||||||||
| Remaining 2025 | 14 | 11 | $ | 17,450 | 1.2 | % | 2,414 | 1.4 | % | |||||||||||||||||||||||||||||
| 2026 | 21 | 21 | 37,954 | 2.6 | % | 5,472 | 3.1 | % | ||||||||||||||||||||||||||||||
| 2027 | 44 | 27 | 63,261 | 4.3 | % | 6,844 | 3.8 | % | ||||||||||||||||||||||||||||||
| 2028 | 44 | 27 | 67,692 | 4.6 | % | 6,745 | 3.8 | % | ||||||||||||||||||||||||||||||
| 2029 | 60 | 33 | 78,233 | 5.3 | % | 8,649 | 4.9 | % | ||||||||||||||||||||||||||||||
| 2030 | 36 | 31 | 40,329 | 2.7 | % | 4,036 | 2.3 | % | ||||||||||||||||||||||||||||||
| 2031 | 45 | 26 | 88,685 | 6.0 | % | 10,428 | 5.9 | % | ||||||||||||||||||||||||||||||
| 2032 | 46 | 25 | 55,531 | 3.8 | % | 7,316 | 4.1 | % | ||||||||||||||||||||||||||||||
| 2033 | 32 | 25 | 82,934 | 5.6 | % | 11,790 | 6.6 | % | ||||||||||||||||||||||||||||||
| 2034 | 59 | 27 | 94,918 | 6.5 | % | 9,464 | 5.3 | % | ||||||||||||||||||||||||||||||
| 2035 | 23 | 19 | 49,958 | 3.4 | % | 7,348 | 4.1 | % | ||||||||||||||||||||||||||||||
| 2036 | 44 | 20 | 65,324 | 4.5 | % | 7,776 | 4.4 | % | ||||||||||||||||||||||||||||||
| 2037 | 41 | 18 | 46,729 | 3.2 | % | 6,826 | 3.8 | % | ||||||||||||||||||||||||||||||
| 2038 | 47 | 14 | 28,162 | 1.9 | % | 2,806 | 1.6 | % | ||||||||||||||||||||||||||||||
| Thereafter (>2038) | 359 | 125 | 652,392 | 44.4 | % | 76,790 | 43.1 | % | ||||||||||||||||||||||||||||||
| Vacant | — | — | — | — | % | 3,281 | 1.8 | % | ||||||||||||||||||||||||||||||
| Total | 915 | $ | 1,469,552 | 100.0 | % | 177,985 | 100.0 | % | ||||||||||||||||||||||||||||||
__________
(a)Assumes tenants do not exercise any renewal options or purchase options.
Terms and Definitions
Pro Rata Metrics — The portfolio information above contains certain metrics prepared on a pro rata basis. We refer to these metrics as pro rata metrics. We have certain investments in which our economic ownership is less than 100%. On a full consolidation basis, we report 100% of the assets, liabilities, revenues, and expenses of those investments that are deemed to be under our control or for which we are deemed to be the primary beneficiary, even if our ownership is less than 100%. Also, for all other jointly owned investments, which we do not control, we report our net investment and our net income or loss from that investment. On a pro rata basis, we generally present our proportionate share, based on our economic ownership of these jointly owned investments, of the portfolio metrics of those investments. Multiplying each of our jointly owned investments’ financial statement line items by our percentage ownership and adding or subtracting those amounts from our totals, as applicable, may not accurately depict the legal and economic implications of holding an ownership interest of less than 100% in our jointly owned investments.
ABR — ABR represents contractual minimum annualized base rent for our net-leased properties and reflects exchange rates as of June 30, 2025. If there is a rent abatement, we annualize the first monthly contractual base rent following the free rent period. ABR is not applicable to operating properties and is presented on a pro rata basis.
Results of Operations
We evaluate our results of operations with a primary focus on increasing and enhancing the value, quality, and number of our properties. We focus our efforts on accretive investing and improving portfolio quality through re-leasing efforts, including negotiation of lease renewals, or selectively selling assets in order to increase value in our real estate portfolio.
W. P. Carey 6/30/2025 10-Q – 42 | |||||
Revenues
The following table presents revenues (in thousands):
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
| 2025 | 2024 | Change | 2025 | 2024 | Change | ||||||||||||||||||||||||||||||
| Real Estate Revenues | |||||||||||||||||||||||||||||||||||
| Lease revenues from: | |||||||||||||||||||||||||||||||||||
| Existing net-leased properties | $ | 329,626 | $ | 310,995 | $ | 18,631 | $ | 652,941 | $ | 616,771 | $ | 36,170 | |||||||||||||||||||||||
| Recently acquired net-leased properties | 33,350 | 7,412 | 25,938 | 59,978 | 10,324 | 49,654 | |||||||||||||||||||||||||||||
| Net-leased properties sold or held for sale | 1,219 | 5,697 | (4,478) | 5,044 | 19,260 | (14,216) | |||||||||||||||||||||||||||||
| Total lease revenues (includes reimbursable tenant costs) | 364,195 | 324,104 | 40,091 | 717,963 | 646,355 | 71,608 | |||||||||||||||||||||||||||||
| Income from finance leases and loans receivable | 20,276 | 14,961 | 5,315 | 37,734 | 40,754 | (3,020) | |||||||||||||||||||||||||||||
| Operating property revenues from: | |||||||||||||||||||||||||||||||||||
| Existing operating properties | 30,295 | 31,077 | (782) | 58,359 | 59,883 | (1,524) | |||||||||||||||||||||||||||||
| Operating properties sold, held for sale, or reclassified to net-leased properties | 3,824 | 7,638 | (3,814) | 8,692 | 15,475 | (6,783) | |||||||||||||||||||||||||||||
| Recently acquired operating properties | 168 | — | 168 | 330 | — | 330 | |||||||||||||||||||||||||||||
| Total operating property revenues | 34,287 | 38,715 | (4,428) | 67,381 | 75,358 | (7,977) | |||||||||||||||||||||||||||||
| Other lease-related income | 9,643 | 9,149 | 494 | 12,764 | 11,304 | 1,460 | |||||||||||||||||||||||||||||
| Investment Management Revenues | |||||||||||||||||||||||||||||||||||
| Asset management revenue | 1,304 | 1,686 | (382) | 2,654 | 3,579 | (925) | |||||||||||||||||||||||||||||
| Other advisory income and reimbursements | 1,072 | 1,057 | 15 | 2,139 | 2,120 | 19 | |||||||||||||||||||||||||||||
| $ | 430,777 | $ | 389,672 | $ | 41,105 | $ | 840,635 | $ | 779,470 | $ | 61,165 | ||||||||||||||||||||||||
W. P. Carey 6/30/2025 10-Q – 43 | |||||
Lease Revenues
“Existing net-leased properties” are those that we acquired or placed into service prior to January 1, 2024 and that were not sold or held for sale during the periods presented. For the periods presented, there were 1,135 existing net-leased properties.
For the three and six months ended June 30, 2025 as compared to the same periods in 2024, lease revenues from existing net-leased properties increased due to the following items (in millions):
__________
(a)Includes (i) lease revenues of $3.3 million and $6.0 million during the three and six months ended June 30, 2025, respectively, from 14 self-storage operating properties that were converted to net leases on September 1, 2024 or April 1, 2025 and (ii) an increase in lease revenues of $0.6 million and $1.3 million during the three and six months ended June 30, 2025, respectively, as a result of a lease restructuring for 27 existing net-leased self-storage properties that was executed on September 1, 2024.
(b)Excludes fixed minimum rent increases, which are reflected as straight-line rent adjustments within lease revenues.
(c)During the first quarter of 2024, we entered into a lease restructuring with our tenant Hellweg, which included (i) abated rent from January 1, 2024 to March 31, 2024 and (ii) a reduction in annual base rent.
W. P. Carey 6/30/2025 10-Q – 44 | |||||
“Recently acquired net-leased properties” are those that we acquired or placed into service subsequent to December 31, 2023 and that were not sold or held for sale during the periods presented. Since January 1, 2024, we acquired 33 investments (comprised of 352 properties).
“Net-leased properties sold or held for sale” include:
•45 net-leased properties disposed of during the six months ended June 30, 2025; and
•175 net-leased properties disposed of during the year ended December 31, 2024.
Our dispositions are more fully described in Note 14.
Income from Finance Leases and Loans Receivable
For the three months ended June 30, 2025 as compared to the same period in 2024, income from finance leases and loans receivable increased due to the following items (in millions):
W. P. Carey 6/30/2025 10-Q – 45 | |||||
For the six months ended June 30, 2025 as compared to the same period in 2024, income from finance leases and loans receivable decreased due to the following items (in millions):
__________
(a)We sold our U-Haul and State of Andalusia portfolios during the first quarter of 2024. Such investments were previously reclassified to net investments in sales-type leases during 2023.
Operating Property Revenues and Expenses
“Existing operating properties” are those that we acquired or placed into service prior to January 1, 2024 and that were not sold, held for sale, or reclassified to net-leased properties during the periods presented. For the periods presented, we recorded operating property revenues from 66 existing operating properties, comprised of 60 self-storage operating properties, four hotel operating properties, and two student housing operating properties.
“Recently acquired operating properties” include one self-storage operating property acquired during the third quarter of 2024.
“Operating properties sold, held for sale, or reclassified to net-leased properties” include:
•one hotel operating property sold during the second quarter of 2024;
•three self-storage operating properties that were reclassified to net-leased properties during the third quarter of 2024;
•two self-storage operating properties that were reclassified to net-leased properties during the second quarter of 2025;
•ten self-storage operating properties sold during the second quarter of 2025; and
•five self-storage operating properties classified as held for sale at June 30, 2025 (Note 4), all of which were sold in July 2025 (Note 15).
Other Lease-Related Income
Other lease-related income is described in Note 4.
W. P. Carey 6/30/2025 10-Q – 46 | |||||
Asset Management Revenue
During the periods presented, we earned asset management revenue from (i) NLOP and (ii) CESH (Note 3). Asset management revenues from NLOP and CESH are expected to decline as assets are sold (CESH owns one remaining build-to-suit project).
Other Advisory Income and Reimbursements
Other advisory income and reimbursements are comprised of (i) fixed administrative fees earned from NLOP and (ii) reimbursable costs from CESH (Note 3).
Operating Expenses
Depreciation and Amortization
For the three and six months ended June 30, 2025 as compared to the same periods in 2024, depreciation and amortization expense decreased primarily due to accelerated amortization of intangible assets in connection with certain lease restructurings during the prior year periods, partially offset by the impact of net investment activity.
Stock-Based Compensation Expense
For the three and six months ended June 30, 2025 as compared to the same periods in 2024, stock-based compensation expense increased primarily due to changes in estimated future PSU payouts.
Impairment Charges — Real Estate
Our impairment charges on real estate are more fully described in Note 8.
Merger and Other Expenses
For the six months ended June 30, 2024, merger and other expenses are primarily comprised of the write-off of a value added tax receivable that was previously recorded in connection with an international investment.
W. P. Carey 6/30/2025 10-Q – 47 | |||||
Other Income and Expenses, and Provision for Income Taxes
Other Gains and (Losses)
Other gains and (losses) primarily consists of gains and losses on (i) the mark-to-market fair value of equity securities, (ii) foreign currency exchange rate movements (except those foreign currency-denominated unsecured debt instruments that were designated as net investment hedges (Note 9)), (iii) changes in the non-cash allowance for credit losses on loans receivable and finance leases, and (iv) extinguishment of debt. The timing and amount of such gains or losses cannot always be estimated and are subject to fluctuation.
The following table presents other gains and (losses) (in thousands):
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
| 2025 | 2024 | Change | 2025 | 2024 | Change | ||||||||||||||||||||||||||||||
| Other Gains and (Losses) | |||||||||||||||||||||||||||||||||||
Non-cash unrealized losses related to a decrease in the fair value of our investment in shares of Lineage Logistics (Note 8) | $ | (69,021) | $ | — | $ | (69,021) | $ | (69,092) | $ | — | $ | (69,092) | |||||||||||||||||||||||
Net realized and unrealized (losses) gains on foreign currency exchange rate movements (a) | (66,387) | 1,369 | (67,756) | (94,322) | 262 | (94,584) | |||||||||||||||||||||||||||||
Change in allowance for credit losses on finance receivables (Note 5) | (9,871) | 1,094 | (10,965) | (22,202) | 5,097 | (27,299) | |||||||||||||||||||||||||||||
| Non-cash unrealized (losses) gains on non-hedging derivatives | (3,275) | 25 | (3,300) | (5,015) | 517 | (5,532) | |||||||||||||||||||||||||||||
Gain on repayment of secured loan receivable (b) | — | — | — | — | 10,650 | (10,650) | |||||||||||||||||||||||||||||
| Other | (214) | 16 | (230) | (334) | (183) | (151) | |||||||||||||||||||||||||||||
| $ | (148,768) | $ | 2,504 | $ | (151,272) | $ | (190,965) | $ | 16,343 | $ | (207,308) | ||||||||||||||||||||||||
__________
(a)Remeasurement of certain monetary assets and liabilities that are held by our subsidiaries in currencies other than their functional currency are included in other gains and (losses), including certain foreign currency-denominated unsecured debt instruments that are not designated as net investment hedges. This includes foreign currency-denominated intercompany loans to our foreign subsidiaries that are scheduled for settlement. Beginning in the first quarter of 2023, our intercompany loans subject to remeasurement were hedged by certain of our foreign currency-denominated unsecured debt that we de-designated as net investment hedges.
(b)We acquired a secured loan receivable with a fair value of $13.3 million in our merger with a former affiliate, Corporate Property Associates 17 – Global Incorporated, in October 2018, for which the outstanding principal of $24.0 million was fully repaid to us in March 2024 (Note 5). Therefore, we recorded a $10.7 million gain on repayment of this secured loan receivable during the six months ended June 30, 2024.
Interest Expense
For the three and six months ended June 30, 2025 as compared to the same periods in 2024, interest expense increased by $6.5 million and $6.6 million, respectively, primarily due to higher outstanding balances and interest rates on our Senior Unsecured Notes and Unsecured Revolving Credit Facility, partially offset by lower interest rates on our Unsecured Term Loans and the reduction of our mortgage debt outstanding by prepaying or repaying at or close to maturity a total of $389.0 million of non-recourse mortgage loans with a weighted-average interest rate of 4.4% since January 1, 2024 (Note 10).
The following table presents certain information about our outstanding debt (dollars in thousands):
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Average outstanding debt balance | $ | 8,549,971 | $ | 7,844,471 | $ | 8,265,328 | $ | 7,888,323 | |||||||||||||||
| Weighted-average interest rate | 3.1 | % | 3.1 | % | 3.2 | % | 3.1 | % | |||||||||||||||
W. P. Carey 6/30/2025 10-Q – 48 | |||||
Gain on Sale of Real Estate, Net
Gain on sale of real estate, net, consists of gains and losses on the sale of properties that were (i) disposed of, (ii) subject to the exercise of a purchase option, or (iii) subject to a purchase agreement resulting in a lease modification during the reporting period, as more fully described in Note 4, Note 5 and Note 14.
Earnings from Equity Method Investments
Our equity method investments are more fully described in Note 7. The following table presents earnings from equity method investments (in thousands):
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
| 2025 | 2024 | Change | 2025 | 2024 | Change | ||||||||||||||||||||||||||||||
| Earnings from Equity Method Investments | |||||||||||||||||||||||||||||||||||
Earnings from Las Vegas Retail Complex (a) | $ | 4,087 | $ | 5,234 | $ | (1,147) | $ | 8,388 | $ | 8,329 | $ | 59 | |||||||||||||||||||||||
Earnings from Kesko Senukai (b) | 1,866 | (24) | 1,890 | 2,728 | 393 | 2,335 | |||||||||||||||||||||||||||||
| Earnings from Harmon Retail Center | 208 | 213 | (5) | 423 | 429 | (6) | |||||||||||||||||||||||||||||
Earnings from Johnson Self Storage (c) | — | 1,213 | (1,213) | — | 2,349 | (2,349) | |||||||||||||||||||||||||||||
| $ | 6,161 | $ | 6,636 | $ | (475) | $ | 11,539 | $ | 11,500 | $ | 39 | ||||||||||||||||||||||||
__________
(a)Decrease for the three months ended June 30, 2025 as compared to the same period in 2024 is primarily due to higher signage revenue at the complex related to a high-profile event during the prior year period.
(b)Increase is primarily due to higher rent collections at these retail properties, where certain rents were previously disputed and subsequently collected.
(c)On September 1, 2024, we acquired the remaining 10% controlling interest in the Johnson Self Storage jointly owned investment, bringing our ownership interest to 100%. Following this acquisition, we no longer recognize equity income from this consolidated investment.
Non-Operating Income
Non-operating income primarily consists of interest income on our cash deposits, realized gains and losses on derivative instruments, and dividends from equity securities.
The following table presents non-operating income (in thousands):
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
| 2025 | 2024 | Change | 2025 | 2024 | Change | ||||||||||||||||||||||||||||||
| Non-Operating Income | |||||||||||||||||||||||||||||||||||
Dividends from our investment in Lineage (Note 8) | $ | 2,846 | $ | — | $ | 2,846 | $ | 5,601 | $ | 3,032 | $ | 2,569 | |||||||||||||||||||||||
Interest income on our cash deposits (a) | 1,049 | 5,891 | (4,842) | 3,645 | 15,247 | (11,602) | |||||||||||||||||||||||||||||
Realized (losses) gains on foreign currency collars (Note 9) | (400) | 3,324 | (3,724) | 2,159 | 6,441 | (4,282) | |||||||||||||||||||||||||||||
| $ | 3,495 | $ | 9,215 | $ | (5,720) | $ | 11,405 | $ | 24,720 | $ | (13,315) | ||||||||||||||||||||||||
__________
(a)Decreases for the three and six months ended June 30, 2025 as compared to the same periods in 2024 are due to lower cash deposit balances as a result of investment activity and debt repayments.
Provision for Income Taxes
For the three and six months ended June 30, 2025 as compared to the same periods in 2024, provision for income taxes increased by $6.9 million and $9.8 million, respectively, primarily due to higher deferred tax benefits recognized during the prior year periods as a result of international lease restructurings and higher current tax expense recognized during the current year periods related to certain lease-related settlements.
W. P. Carey 6/30/2025 10-Q – 49 | |||||
Liquidity and Capital Resources
Sources and Uses of Cash During the Period
We use the cash flow generated from our investments primarily to meet our operating expenses, service debt, and fund dividends to stockholders. Our cash flows fluctuate periodically due to a number of factors, which may include, among other things: the timing of our equity and debt offerings; the timing of purchases and sales of real estate; the timing of the repayment of mortgage loans, our Senior Unsecured Notes, and our Unsecured Term Loans; the timing of our receipt of lease revenues; the timing and amount of other lease-related payments; the timing of settlement of foreign currency transactions; changes in foreign currency exchange rates; and the timing of distributions from equity method investments. Despite these fluctuations, we believe that we will generate sufficient cash from operations to meet our normal recurring short-term liquidity needs. We may also use existing cash resources, available capacity under our Senior Unsecured Credit Facility, proceeds from term loans or other bank debt, proceeds from dispositions of properties, and the issuance of additional debt or equity securities, such as issuances of common stock through our ATM Program (Note 12), in order to meet our short-term and long-term liquidity needs. We assess our ability to access capital on an ongoing basis. Our sources and uses of cash during the period are described below.
Operating Activities — Net cash provided by operating activities decreased by $579.4 million during the six months ended June 30, 2025 as compared to the same period in 2024, primarily due to significantly lower proceeds received from the sales of net investments in sales-type leases (Note 5), partially offset by an increase in cash flow generated from net investment activity, scheduled rent increases at existing properties, and leasing activity.
Investing Activities — Our investing activities are generally comprised of real estate-related transactions (purchases and sales) and funding for build-to-suit activities and other capital expenditures on real estate.
Financing Activities — Our financing activities are generally comprised of borrowings and repayments under our Unsecured Revolving Credit Facility and Unsecured Term Loans, issuances and repayments of the Senior Unsecured Notes, payments of non-recourse mortgage loans, issuances of common equity, and payments of dividends to stockholders.
W. P. Carey 6/30/2025 10-Q – 50 | |||||
Summary of Financing
The table below summarizes our Senior Unsecured Notes, our non-recourse mortgages, and our Senior Unsecured Credit Facility (dollars in thousands):
| June 30, 2025 | December 31, 2024 | ||||||||||
| Carrying Value | |||||||||||
| Fixed rate: | |||||||||||
Senior Unsecured Notes, net (a) | $ | 6,540,432 | $ | 6,505,907 | |||||||
Unsecured Term Loans, net subject to interest rate swaps (a) | 948,415 | 517,524 | |||||||||
Non-recourse mortgages, net (a) (b) | 235,425 | 401,821 | |||||||||
| 7,724,272 | 7,425,252 | ||||||||||
| Variable rate: | |||||||||||
| Unsecured Revolving Credit Facility | 660,872 | 55,448 | |||||||||
Unsecured Term Loans, net (a) | 250,841 | 558,302 | |||||||||
| 911,713 | 613,750 | ||||||||||
| $ | 8,635,985 | $ | 8,039,002 | ||||||||
| Percent of Total Debt | |||||||||||
| Fixed rate | 89 | % | 92 | % | |||||||
| Variable rate | 11 | % | 8 | % | |||||||
| 100 | % | 100 | % | ||||||||
| Weighted-Average Interest Rate at End of Period | |||||||||||
| Fixed rate | 3.0 | % | 3.2 | % | |||||||
| Variable rate | 4.3 | % | 4.7 | % | |||||||
| Total debt | 3.2 | % | 3.3 | % | |||||||
__________
(a)Aggregate debt balance includes unamortized discount, net, totaling $40.5 million and $39.3 million as of June 30, 2025 and December 31, 2024, respectively, and unamortized deferred financing costs totaling $29.8 million and $30.9 million as of June 30, 2025 and December 31, 2024, respectively.
(b)Includes non-recourse mortgages subject to variable-to-fixed interest rate swaps totaling $46.8 million and $43.5 million as of June 30, 2025 and December 31, 2024, respectively.
Cash Resources
At June 30, 2025, our cash resources consisted of the following:
•cash and cash equivalents totaling $244.8 million. Of this amount, $211.1 million, at then-current exchange rates, was held in foreign subsidiaries, and we could be subject to restrictions or significant costs should we decide to repatriate these amounts;
•funds totaling $135.2 million that are held by an intermediary and have been designated for future tax-deferred like-kind exchanges under 1031 Exchange transactions (Note 2);
•our Unsecured Revolving Credit Facility, with available capacity of approximately $1.3 billion (net of amounts reserved for standby letters of credit totaling $0.5 million); and
•unleveraged properties that had an aggregate asset carrying value of approximately $14.8 billion at June 30, 2025, although there can be no assurance that we would be able to obtain financing for these properties.
We may also access the capital markets through additional debt (denominated in both U.S. dollars and euros) and equity offerings, as well as term loans and other bank debt.
Our cash resources can be used for working capital needs and other commitments and may be used for future investments.
W. P. Carey 6/30/2025 10-Q – 51 | |||||
Cash Requirements and Liquidity
As of June 30, 2025, we had (i) $244.8 million of cash and cash equivalents, (ii) $135.2 million of funds that are held by an intermediary and have been designated for future 1031 Exchange transactions (Note 2), and (iii) approximately $1.3 billion of available capacity under our Unsecured Revolving Credit Facility (net of amounts reserved for standby letters of credit totaling $0.5 million). As of June 30, 2025, scheduled debt principal payments total $46.7 million during the remainder of 2025 and $1.0 billion during 2026 (Note 10).
During the next 12 months following June 30, 2025 and thereafter, we expect that our significant cash requirements will include:
•paying dividends to our stockholders;
•funding acquisitions of new investments (Note 4);
•funding future capital commitments (Note 4) and tenant improvement allowances;
•making scheduled principal and balloon payments on our debt obligations, including €500 million of senior notes due in April 2026 (Note 10);
•making scheduled interest payments on our debt obligations (future interest payments total $1.5 billion, with $276.1 million due during the next 12 months; interest on unhedged variable-rate debt obligations was calculated using the applicable annual variable interest rates and balances outstanding at June 30, 2025); and
•other normal recurring operating expenses.
We expect to fund these cash requirements through cash generated from operations, cash received from dispositions of properties, the use of our cash reserves or unused amounts on our Unsecured Revolving Credit Facility (as described above), proceeds from term loans or other bank debt, issuances of common stock through our ATM Program (Note 12), and potential issuances of additional debt or equity securities.
Our liquidity could be adversely affected by an unanticipated disruption to our operating cash flow, which could include interrupted rent collections or greater-than-anticipated operating expenses. To the extent that our working capital reserve is insufficient to satisfy our cash requirements, additional funds may be provided from cash from operations to meet our normal recurring short-term and long-term liquidity needs. We may also use existing cash resources, available capacity under our Unsecured Revolving Credit Facility, mortgage loan proceeds, and the issuance of additional debt or equity securities to meet these needs.
Certain amounts disclosed above are based on the applicable foreign currency exchange rate at June 30, 2025.
New Tax Legislation
Effective July 4, 2025, certain changes to U.S. tax law were approved that may impact us and our stockholders. Among other changes, this legislation (i) permanently extended the 20% deduction for “qualified REIT dividends” for individuals and other non-corporate taxpayers under Section 199A of the Code, (ii) increased the percentage limit under the REIT asset test applicable to TRSs from 20% to 25% for taxable years beginning after December 31, 2025, and (iii) increases the base on which the 30% interest deduction limit under Section 163(j) of the Code applies by excluding depreciation, amortization, and depletion from the definition of “adjusted taxable income” (i.e. based on EBITDA rather than EBIT) for taxable years beginning after December 31, 2024.
Supplemental Financial Measures
In the real estate industry, analysts and investors employ certain non-GAAP supplemental financial measures in order to facilitate meaningful comparisons between periods and among peer companies. Additionally, in the formulation of our goals and in the evaluation of the effectiveness of our strategies, we use Funds from Operations (“FFO”) and AFFO, which are non-GAAP measures defined by our management. We believe that these measures are useful to investors to consider because they may assist them to better understand and measure the performance of our business over time and against similar companies. A description of FFO and AFFO and reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are provided below.
W. P. Carey 6/30/2025 10-Q – 52 | |||||
Funds from Operations and Adjusted Funds from Operations
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, spin-off expenses, and income and expenses associated with our captive insurance company. 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.
W. P. Carey 6/30/2025 10-Q – 53 | |||||
FFO and AFFO were as follows (in thousands):
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Net income attributable to W. P. Carey | $ | 51,220 | $ | 142,895 | $ | 177,044 | $ | 302,118 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Depreciation and amortization of real property | 119,930 | 136,840 | 248,867 | 254,953 | |||||||||||||||||||
| Gain on sale of real estate, net | (52,824) | (39,363) | (96,601) | (54,808) | |||||||||||||||||||
| Impairment charges — real estate | 4,349 | 15,752 | 11,203 | 15,752 | |||||||||||||||||||
Proportionate share of adjustments to earnings from equity method investments (a) | 2,231 | 3,015 | 3,874 | 5,964 | |||||||||||||||||||
Proportionate share of adjustments for noncontrolling interests (b) | (82) | (101) | (160) | (204) | |||||||||||||||||||
Total adjustments | 73,604 | 116,143 | 167,183 | 221,657 | |||||||||||||||||||
| FFO (as defined by NAREIT) attributable to W. P. Carey | 124,824 | 259,038 | 344,227 | 523,775 | |||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||
Other (gains) and losses (c) | 148,768 | (2,504) | 190,965 | (16,343) | |||||||||||||||||||
| Straight-line and other leasing and financing adjustments | (15,374) | (15,310) | (34,407) | (34,863) | |||||||||||||||||||
| Stock-based compensation | 10,943 | 8,903 | 20,091 | 17,759 | |||||||||||||||||||
Above- and below-market rent intangible lease amortization, net | 5,061 | 5,766 | 6,184 | 9,834 | |||||||||||||||||||
| Amortization of deferred financing costs | 4,628 | 4,555 | 9,410 | 9,143 | |||||||||||||||||||
| Tax expense (benefit) — deferred and other | 2,820 | (1,392) | 2,038 | (2,765) | |||||||||||||||||||
| Other amortization and non-cash items | 579 | 580 | 1,139 | 1,159 | |||||||||||||||||||
Merger and other expenses (d) | 192 | 206 | 748 | 4,658 | |||||||||||||||||||
Proportionate share of adjustments to earnings from equity method investments (a) | 309 | (2,646) | 223 | (3,165) | |||||||||||||||||||
Proportionate share of adjustments for noncontrolling interests (b) | (80) | (97) | (128) | (201) | |||||||||||||||||||
Total adjustments | 157,846 | (1,939) | 196,263 | (14,784) | |||||||||||||||||||
| AFFO attributable to W. P. Carey | $ | 282,670 | $ | 257,099 | $ | 540,490 | $ | 508,991 | |||||||||||||||
| Summary | |||||||||||||||||||||||
| FFO (as defined by NAREIT) attributable to W. P. Carey | $ | 124,824 | $ | 259,038 | $ | 344,227 | $ | 523,775 | |||||||||||||||
| AFFO attributable to W. P. Carey | $ | 282,670 | $ | 257,099 | $ | 540,490 | $ | 508,991 | |||||||||||||||
__________
(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)Primarily comprised of gains and losses on the mark-to-market fair value of equity securities, foreign currency exchange rate movements, changes in the non-cash allowance for credit losses on loans receivable and finance leases, and extinguishment of debt. Amounts for both the three and six months ended June 30, 2025 include a mark-to-market unrealized loss for our investment in shares of Lineage of approximately $69 million (Note 8).
(d)Amount for the six months ended June 30, 2024 is primarily comprised of the write-off of a value added tax receivable that was previously recorded in connection with an international investment.
While we believe that FFO and AFFO are important supplemental measures, they should not be considered as alternatives to net income as an indication of a company’s operating performance. These non-GAAP measures should be used in conjunction with net income as defined by GAAP. FFO and AFFO, or similarly titled measures disclosed by other REITs, may not be comparable to our FFO and AFFO measures.
W. P. Carey 6/30/2025 10-Q – 54 | |||||
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Market Risk
Market risk is the exposure to loss resulting from changes in interest rates, foreign currency exchange rates, and equity prices. The primary market risks that we are exposed to are interest rate risk and foreign currency exchange risk; however, we do not use derivative instruments to hedge credit/market risks or for speculative purposes.
We are also exposed to further market risk as a result of tenant concentrations in certain industries and/or geographic regions, since adverse market factors can affect the ability of tenants in a particular industry/region to meet their respective lease obligations. In order to manage this risk, we view our collective tenant roster as a portfolio and we attempt to diversify such portfolio so that we are not overexposed to a particular industry or geographic region.
Interest Rate Risk
The values of our real estate and related fixed-rate debt obligations, as well as the values of our unsecured debt obligations, are subject to fluctuations based on changes in interest rates. The value of our real estate is also subject to fluctuations based on local and regional economic conditions and changes in the creditworthiness of lessees, which may affect our ability to refinance property-level mortgage debt when balloon payments are scheduled, if we do not choose to repay the debt when due. Interest rates are highly sensitive to many factors, including governmental monetary and tax policies, domestic and international economic and political conditions, and other factors beyond our control. An increase in interest rates would likely cause the fair value of our assets to decrease. Increases in interest rates may also have an impact on the credit profile of certain tenants.
We are exposed to the impact of interest rate changes primarily through our borrowing activities. To limit this exposure, we generally seek long-term debt financing on a fixed-rate basis. However, we are subject to variable-rate interest on our Unsecured Term Loans and Unsecured Revolving Credit Facility. We have entered into, and may continue to enter into, interest rate swap agreements or interest rate cap agreements with counterparties related to certain of our variable-rate debt (Note 10). See Note 9 for additional information on our interest rate swaps and caps.
Our debt obligations are more fully described in Note 10 and Liquidity and Capital Resources — Summary of Financing in Item 2 above. The following table presents principal cash flows based upon expected maturity dates of our debt obligations outstanding at June 30, 2025 (in thousands):
2025 (Remainder) | 2026 | 2027 | 2028 | 2029 | Thereafter | Total | Fair Value | ||||||||||||||||||||||||||||||||||||||||
Fixed-rate debt (a) (b) | $ | 46,715 | $ | 1,027,245 | $ | 596,425 | $ | 1,031,723 | $ | 1,098,500 | $ | 3,992,889 | $ | 7,793,497 | $ | 7,452,512 | |||||||||||||||||||||||||||||||
Variable-rate debt (a) | $ | — | $ | — | $ | — | $ | 251,980 | $ | 660,872 | $ | — | $ | 912,852 | $ | 946,950 | |||||||||||||||||||||||||||||||
__________
(a)Amounts are based on the exchange rate at June 30, 2025, as applicable.
(b)Amounts include non-recourse mortgages and unsecured term loans subject to variable-to-fixed interest rate swaps. Amounts are primarily comprised of principal payments for our Senior Unsecured Notes (Note 10).
The estimated fair value of our fixed-rate debt and our variable-rate debt is affected by changes in interest rates. Annual interest expense on our unhedged variable-rate debt that does not bear interest at fixed rates at June 30, 2025 would increase or decrease by $5.9 million for our U.S. dollar-denominated debt, by $2.5 million for our euro-denominated debt, by $0.5 million for our Norwegian krone-denominated debt, and by $0.2 million for our Japanese yen-denominated debt, for each respective 1% change in annual interest rates.
W. P. Carey 6/30/2025 10-Q – 55 | |||||
Foreign Currency Exchange Rate Risk
We own international investments, primarily in Europe, Canada, and Japan, and as a result are subject to risk from the effects of exchange rate movements in various foreign currencies, primarily the euro, British pound sterling, Danish krone, Canadian dollar, Japanese yen, and certain other currencies which may affect future costs and cash flows. We have obtained, and may in the future obtain, non-recourse mortgage financing in the local currency. We have also completed several offerings of euro-denominated senior notes, and have borrowed under our Senior Unsecured Credit Facility and Unsecured Term Loan due 2029 in foreign currencies, including the euro, British pound sterling, Norwegian krone, and Japanese yen (Note 10). Volatile market conditions arising from certain macroeconomic factors may result in significant fluctuations in foreign currency exchange rates. To the extent that currency fluctuations increase or decrease rental revenues, as translated to U.S. dollars, the change in debt service (comprised of principal and interest, excluding balloon payments), as translated to U.S. dollars, will partially offset the effect of fluctuations in revenue and, to some extent, mitigate the risk from changes in foreign currency exchange rates. We estimate that, for a 1% increase or decrease in the exchange rate between the euro, British pound sterling, or Danish krone and the U.S. dollar, there would be a corresponding change in the projected estimated cash flow (scheduled future rental revenues, net of scheduled future debt service payments for the next 12 months) for our consolidated foreign operations at June 30, 2025 of $2.2 million, $0.4 million, and $0.3 million, respectively, excluding the impact of our derivative instruments.
In addition, we may use currency hedging to further reduce the exposure to our equity cash flow. We are generally a net receiver of these currencies (we receive more cash than we pay out), and therefore our foreign operations benefit from a weaker U.S. dollar and are adversely affected by a stronger U.S. dollar, relative to the foreign currency.
We enter into foreign currency collars to hedge certain of our foreign currency cash flow exposures. See Note 9 for additional information on our foreign currency collars.
Concentration of Credit Risk
Concentrations of credit risk arise when a number of tenants are engaged in similar business activities or have similar economic risks or conditions that could cause them to default on their lease obligations to us. We regularly monitor our portfolio to assess potential concentrations of credit risk. While we believe our portfolio is well-diversified, it does contain concentrations in certain areas. There have been no material changes in our concentration of credit risk from what was disclosed in the 2024 Annual Report.
W. P. Carey 6/30/2025 10-Q – 56 | |||||
Item 4. Controls and Procedures.
Disclosure Controls and Procedures
Our disclosure controls and procedures include internal controls and other procedures designed to provide reasonable assurance that information required to be disclosed in this and other reports filed under the Exchange Act is recorded, processed, summarized, and reported within the required time periods specified in the SEC’s rules and forms; and that such information is accumulated and communicated to management, including our chief executive officer and chief financial officer, to allow timely decisions regarding required disclosures. It should be noted that no system of controls can provide complete assurance of achieving a company’s objectives and that future events may impact the effectiveness of a system of controls.
Our chief executive officer and chief financial officer, after conducting an evaluation, together with members of our management, of the effectiveness of the design and operation of our disclosure controls and procedures as of June 30, 2025, have concluded that our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) were effective as of June 30, 2025 at a reasonable level of assurance.
Changes in Internal Control Over Financial Reporting
There have been no changes in our internal control over financial reporting during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.
W. P. Carey 6/30/2025 10-Q – 57 | |||||
PART II — OTHER INFORMATION
Item 6. Exhibits.
The following exhibits are filed with this Report. Documents other than those designated as being filed herewith are incorporated herein by reference.
| Exhibit No. | Description | Method of Filing | ||||||||||||
| 4.1 | Twelfth Supplemental Indenture dated as of July 10, 2025, by and between W. P. Carey Inc., as issuer, and U.S. Bank Trust Company, National Association, as trustee | Incorporated by Reference to Exhibit 4.3 to Current Report on Form 8-K filed July 10, 2025 | ||||||||||||
| 4.2 | Form of Note representing $400 Million Aggregate Principal Amount of 4.650% Senior Notes due 2030 | Incorporated by Reference to Exhibit 4.1 to Current Report on Form 8-K filed July 10, 2025 | ||||||||||||
| 31.1 | Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | Filed herewith | ||||||||||||
| 31.2 | Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | Filed herewith | ||||||||||||
| 32 | Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | Filed herewith | ||||||||||||
| 101.INS | XBRL Instance Document — the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL Document | Filed herewith | ||||||||||||
| 101.SCH | XBRL Taxonomy Extension Schema Document | Filed herewith | ||||||||||||
| 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | Filed herewith | ||||||||||||
| 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | Filed herewith | ||||||||||||
| 101.LAB | XBRL Taxonomy Extension Label Linkbase Document | Filed herewith | ||||||||||||
| 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | Filed herewith | ||||||||||||
| 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) | Filed herewith | ||||||||||||
W. P. Carey 6/30/2025 10-Q – 58 | |||||
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
| W. P. Carey Inc. | |||||||||||
| Date: | July 30, 2025 | By: | /s/ ToniAnn Sanzone | ||||||||
| ToniAnn Sanzone | |||||||||||
| Chief Financial Officer | |||||||||||
| (Principal Financial Officer) | |||||||||||
| Date: | July 30, 2025 | By: | /s/ Brian Zander | ||||||||
| Brian Zander | |||||||||||
| Chief Accounting Officer | |||||||||||
| (Principal Accounting Officer) | |||||||||||
W. P. Carey 6/30/2025 10-Q – 59 | |||||
FAQ
How much did WPC's Q2 2025 revenue grow year over year?
Total revenue increased 10.6 % to $430.8 million from $389.7 million.
What was W. P. Carey's Q2 2025 EPS?
Diluted EPS was $0.23, down from $0.65 in Q2 2024.
What dividend did WPC declare for Q2 2025?
The board declared a quarterly cash dividend of $0.90 per share, payable July 2025.
What is WPC's portfolio occupancy and lease term?
Occupancy stands at 98.2 % with a weighted-average remaining lease term of 12.1 years.
How much debt does WPC currently have?
Total debt is $8.64 billion, up from $8.04 billion at December 31 2024.
What were the key acquisitions in the first half of 2025?
WPC acquired 81 properties for $543 million, including large industrial portfolios in the US and Europe.
W.P. Carey Inc.
NYSE:WPC
WPC Rankings
WPC Latest News
WPC Latest SEC Filings
Jul 29, 2025
[8-K] W.P. Carey Inc. (REIT) Reports Material Event
Jul 10, 2025
[8-K] W.P. Carey Inc. (REIT) Reports Material Event
WPC Stock Data
13.94B
216.21M
1.32%
70.04%
1.86%
REIT - Diversified
Real Estate Investment Trusts
United States
NEW YORK