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W. P. Carey Inc. (WPC)
NYSE:WPC
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W. P. Carey Inc. (WPC) AI Stock Analysis

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WPC

W. P. Carey Inc.

(NYSE:WPC)

Rating:74Outperform
Price Target:
$72.00
▲(11.73%Upside)
W. P. Carey Inc.'s stock is well-supported by strong financial performance and technical momentum. The company's robust dividend yield and positive earnings call sentiment further bolster its attractiveness, despite a high P/E ratio and external uncertainties.
Positive Factors
Dividend Yield
WPC provides a well-covered 6.0% dividend yield, appealing to income-focused investors.
Investment Strategy
WPC's capacity to raise debt in Europe at favorable rates and sell non-core assets to reinvest is a strategic advantage.
Liquidity
With $2B+ of liquidity at its disposal and $750M of dispositions at the midpoint, there is little reliance on capital markets to achieve its investment target.
Negative Factors
Competition
Potential risks include unforeseen credit issues and increasing competition that could impact growth.
Credit Issues
Unforeseen credit issues could emerge given its sub-investment grade portfolio.
Economic Sensitivity
WPC's portfolio has increased sensitivity to downward economic swings, in our view.

W. P. Carey Inc. (WPC) vs. SPDR S&P 500 ETF (SPY)

W. P. Carey Inc. Business Overview & Revenue Model

Company DescriptionW. P. Carey Inc. (WPC) is a leading real estate investment trust (REIT) specializing in the acquisition, ownership, and management of commercial real estate properties. The company's portfolio is diversified across various sectors, including industrial, warehouse, office, retail, and self-storage properties. W. P. Carey is known for its focus on net lease agreements, which provide stable and predictable cash flows. The company operates primarily in the United States and Europe, serving a wide range of tenants across different industries.
How the Company Makes MoneyW. P. Carey Inc. generates revenue primarily through rental income from its extensive portfolio of real estate properties. The company employs a net lease model, where tenants are responsible for paying property taxes, insurance, and maintenance costs, in addition to rent. This structure ensures steady income streams and minimizes expenses for W. P. Carey. The company's revenue is further supported by its investment management services, where it earns fees by managing assets on behalf of institutional investors. Key factors contributing to W. P. Carey's earnings include strategic property acquisitions, long-term lease agreements with creditworthy tenants, and geographical diversification of its portfolio.

W. P. Carey Inc. Earnings Call Summary

Earnings Call Date:Apr 29, 2025
(Q1-2025)
|
% Change Since: 6.94%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a cautious optimism with solid investment activity and a strong pipeline offset by challenges related to tariffs and specific tenant credit issues. While there are uncertainties, the company's funding strategy and refinancing efforts are positive signs.
Q1-2025 Updates
Positive Updates
Solid Investment Activity
Closed about $450 million of investments with an initial weighted average cap rate of 7.4%, with rent escalation structures averaging in the mid to high 2% range, resulting in an average yield over the life of the leases exceeding 9%.
Strong Pipeline and Funding Strategy
Visible pipeline of approximately $570 million in deals for 2025 and progress on funding through non-core asset sales, including $130 million sold in the first quarter.
Euro Term Loan Refinancing
Refinanced Euro term loan, fixing its interest rate below 3% through an interest rate swap, demonstrating low cost of debt in the net lease sector.
AFFO Growth and Guidance
AFFO per share of $1.17 for the first quarter, an increase of 2.6% year-over-year, reaffirmed AFFO guidance range of $4.82 to $4.92 per share.
Dividend Increase
Declared a dividend of $0.89 per share, annualized at $3.56, representing a 2.9% increase over the prior year.
Negative Updates
Uncertainty Due to Tariffs
Uncertainty surrounding tariffs is a key theme, causing substantial uncertainty in the broader economy and capital markets.
Challenges with Hellweg Tenant
Hellweg is facing a challenging operating environment, including weak German consumer spending and a competitive DIY industry, leading to a planned reduction in exposure.
Potential Rent Loss from Tenant Credit Events
Guidance includes an estimated $15 million to $20 million for potential rent loss from tenant credit events, reflecting the uncertainty of the current macro environment.
Company Guidance
During the W. P. Carey First Quarter 2025 Earnings Conference Call, the company provided detailed guidance on its financial outlook for the year. The company reaffirmed its AFFO guidance range of $4.82 to $4.92 per share, reflecting a 3.6% implied growth, with potential to exceed this as market dynamics unfold. W. P. Carey reported a solid $450 million of investment volume for the year-to-date, with a weighted average cap rate of 7.4%, and expects to close additional deals in the near term, totaling approximately $570 million. The company remains confident in accretively funding new investments, leveraging a solid mix of U.S. dollar and Euro-denominated debt, with a current weighted average cost of debt at 3.2%, and minimal near-term debt maturities. Dispositions are projected between $500 million to $1 billion, with an anticipated 100 basis point spread between asset sales and new investments. Despite external uncertainties, such as tariffs, the company maintains its estimated potential rent loss from tenant credit events and sees a path to the high end of its guidance ranges, driven by strong investment pipeline and strategic capital management.

W. P. Carey Inc. Financial Statement Overview

Summary
W. P. Carey Inc. presents a stable financial position with strong operational efficiency and cash generation capabilities. Healthy profit margins and a solid equity base provide a firm foundation, although slight declines in net profit margin and return on equity indicate areas for improvement.
Income Statement
65
Positive
W. P. Carey Inc. shows a stable gross profit margin with recent figures at 89.96% TTM. The net profit margin decreased slightly to 26.66% TTM from 29.10% in the previous annual report. Revenue growth is moderate, with a slight increase of 1.27% TTM. EBIT and EBITDA margins are healthy at 37.88% and 87.16% TTM, respectively, indicating efficient operational management. However, the decline in net income affects the overall profitability score.
Balance Sheet
70
Positive
The debt-to-equity ratio is stable at 0.94 TTM, reflecting balanced leverage. Return on equity is reasonable at 5.11% TTM, but declining from 5.46% annually, suggesting a need for improvement in generating returns for shareholders. The equity ratio is strong at 48.32% TTM, indicating a solid equity base relative to total assets.
Cash Flow
75
Positive
Operating cash flow decreased but remains strong relative to net income with a ratio of 2.51 TTM. Free cash flow improved by 21.66% TTM, indicating efficient capital expenditure management. The free cash flow to net income ratio is excellent at 2.55 TTM, suggesting robust cash generation capabilities.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.58B1.74B1.48B1.33B1.21B
Gross Profit1.41B1.52B1.33B1.21B1.09B
EBITDA1.30B1.67B1.36B1.18B1.02B
Net Income460.84M708.33M599.14M409.99M455.36M
Balance Sheet
Total Assets17.54B17.98B18.10B15.48B14.71B
Cash, Cash Equivalents and Short-Term Investments640.37M633.86M168.00M165.43M248.66M
Total Debt8.04B8.14B8.02B6.79B6.70B
Total Liabilities9.10B9.27B9.09B7.90B7.83B
Stockholders Equity8.43B8.70B8.99B7.58B6.88B
Cash Flow
Free Cash Flow1.83B1.07B899.12M812.86M594.28M
Operating Cash Flow1.83B1.07B1.00B926.48M801.54M
Investing Cash Flow-1.13B-905.88M-1.05B-1.57B-539.93M
Financing Cash Flow-688.47M292.56M57.89M557.05M-210.71M

W. P. Carey Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price64.44
Price Trends
50DMA
61.92
Positive
100DMA
61.13
Positive
200DMA
57.96
Positive
Market Momentum
MACD
0.32
Negative
RSI
62.54
Neutral
STOCH
89.52
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WPC, the sentiment is Positive. The current price of 64.44 is above the 20-day moving average (MA) of 62.57, above the 50-day MA of 61.92, and above the 200-day MA of 57.96, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 62.54 is Neutral, neither overbought nor oversold. The STOCH value of 89.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WPC.

W. P. Carey Inc. Risk Analysis

W. P. Carey Inc. disclosed 42 risk factors in its most recent earnings report. W. P. Carey Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

W. P. Carey Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$35.36B13.3510.12%5.17%5.32%-0.55%
76
Outperform
$6.06B26.356.33%3.86%25.79%2.46%
74
Outperform
$506.17M17.339.57%7.68%1.82%-1.03%
74
Outperform
$13.89B32.715.02%5.50%-5.89%-26.36%
66
Neutral
$3.00B26.703.79%7.31%0.73%-37.65%
64
Neutral
$6.87B17.44-1.93%6.95%4.65%-24.33%
57
Neutral
$1.59B-13.01%12.99%16.69%39.04%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WPC
W. P. Carey Inc.
64.44
7.28
12.74%
OLP
One Liberty Properties
23.15
-1.90
-7.58%
GNL
Global Net Lease
7.16
-0.74
-9.37%
VICI
VICI Properties
33.41
4.15
14.18%
EPRT
Essential Properties Realty
30.55
1.25
4.27%
BNL
Broadstone Net Lease
15.84
-0.97
-5.77%

W. P. Carey Inc. Corporate Events

Private Placements and Financing
W. P. Carey Completes $400M Senior Notes Offering
Neutral
Jul 10, 2025

On July 10, 2025, W. P. Carey Inc. completed a public offering of $400 million in 4.650% Senior Notes due 2030. The proceeds are intended to repay certain debts and for general corporate purposes, potentially impacting the company’s financial flexibility and debt management strategies.

The most recent analyst rating on (WPC) stock is a Buy with a $68.00 price target. To see the full list of analyst forecasts on W. P. Carey Inc. stock, see the WPC Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
W. P. Carey Inc. Announces $400M Senior Notes Offering
Neutral
Jul 8, 2025

On July 7, 2025, W. P. Carey Inc. announced the pricing of a $400 million public offering of 4.650% Senior Notes due 2030. The offering, managed by Wells Fargo Securities, BofA Securities, Scotia Capital, and Mizuho Securities, is expected to settle on July 10, 2025. The company plans to use the proceeds to repay certain debts, including part of its $2 billion unsecured revolving credit facility, and for general corporate purposes. This move is part of W. P. Carey’s strategy to manage its financial obligations and support its ongoing operations.

The most recent analyst rating on (WPC) stock is a Buy with a $68.00 price target. To see the full list of analyst forecasts on W. P. Carey Inc. stock, see the WPC Stock Forecast page.

Executive/Board ChangesShareholder Meetings
W. P. Carey Inc. Holds Annual Stockholders Meeting
Neutral
Jun 13, 2025

On June 12, 2025, W. P. Carey Inc. held its annual stockholders meeting where three key proposals were voted on. The stockholders elected ten directors to the board, approved executive compensation on a non-binding basis, and ratified the appointment of PricewaterhouseCoopers LLP as the independent auditor for the fiscal year ending December 31, 2025. These decisions are pivotal for the company’s governance and financial oversight, potentially impacting its operational strategies and stakeholder confidence.

The most recent analyst rating on (WPC) stock is a Buy with a $68.00 price target. To see the full list of analyst forecasts on W. P. Carey Inc. stock, see the WPC Stock Forecast page.

DividendsFinancial Disclosures
W. P. Carey Inc. Announces Q1 2025 Financial Results
Neutral
Apr 29, 2025

On April 29, 2025, W. P. Carey Inc. announced its financial results for the first quarter of 2025, reporting a net income of $125.8 million, a decrease from the previous year due to foreign debt remeasurement losses and higher credit loss allowances. Despite these challenges, the company reaffirmed its 2025 AFFO guidance and highlighted a strong start to the year with $448.6 million in investments and a robust pipeline of deals. The company also increased its quarterly dividend, reflecting confidence in its financial stability and growth potential.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 25, 2025