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W. P. Carey Inc. (WPC)
NYSE:WPC
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W. P. Carey Inc.
(NYSE:WPC)
Rating:67Neutral
Price Target:
$65.00
▲( 5.91% Upside)
Positive Factors
Dividend Yield
WPC provides a well-covered 6.0% dividend yield, appealing to income-focused investors.
Financial 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.
Management Transparency
Management’s commitment to transparency toward recent tenant credit issues, which have had a negligible impact on operating rents to date, has been welcomed by the investment community.
Negative Factors
Credit Events
Credit events lead to higher losses; accounted for in guidance, with increased sensitivity to downward economic swings.
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.
W. P. Carey Inc. (WPC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.19B
Dividend Yield5.82%
Average Volume (3M)1.03M
Price to Earnings (P/E)31.1
Beta (1Y)0.45
Revenue Growth-5.89%
EPS Growth-26.36%
CountryUS
Employees203
SectorReal Estate
Sector Strength62
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.60
Shares Outstanding218,976,230
10 Day Avg. Volume1,038,869
30 Day Avg. Volume1,034,877
Financial Highlights & Ratios
PEG Ratio-4.44
Price to Book (P/B)1.63
Price to Sales (P/S)0.00
P/FCF Ratio16.56
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue2.11
Enterprise Value/Gross Profit10.23
Enterprise Value/Ebitda2.44
Forecast
1Y Price Target
$64.13Price Target Upside4.50% Upside
Rating ConsensusHold
Number of Analyst Covering9
W. P. Carey Inc. Business Overview & Revenue Model
Company DescriptionW. P. Carey ranks among the largest net lease REITs with an enterprise value of approximately $18 billion and a diversified portfolio of operationally-critical commercial real estate that includes 1,215 net lease properties covering approximately 142 million square feet as of September 30, 2020. For nearly five decades, the company has invested in high-quality single-tenant industrial, warehouse, office, retail and self-storage properties subject to long-term net leases with built-in rent escalators. Its portfolio is located primarily in the U.S. and Northern and Western Europe and is well-diversified by tenant, property type, geographic location and tenant industry.
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. Financial Statement Overview
Summary
W. P. Carey Inc. exhibits strong financial health with robust revenue growth and improved net profit margins. The stable balance sheet and healthy free cash flow generation support its financial robustness. However, some limitations in the latest data and a slight decrease in total assets are noted.Income Statement
W. P. Carey Inc. has shown robust revenue growth with an increase from $1.21 billion in 2020 to $1.74 billion in 2023, indicating a strong upward trajectory. The net profit margin has improved significantly, reflecting efficient cost management. However, the gross profit margin is unavailable for the latest year, limiting the full assessment of profitability. EBIT and EBITDA margins have remained strong, contributing to a solid financial performance.68
Positive
Balance Sheet
The company maintains a strong equity base with a debt-to-equity ratio that has improved over recent years, indicating prudent financial management. Return on equity has been consistently healthy, enhancing shareholder value. The equity ratio suggests a stable financial structure, though total assets have seen a slight decrease, which should be monitored.75
Positive
Cash Flow
W. P. Carey Inc. has shown consistent free cash flow generation, with growth in operating cash flow over the years. The operating cash flow to net income ratio indicates strong cash conversion, while the free cash flow to net income ratio suggests robust financial health. Lack of data for the latest period limits full assessment, but historical performance has been solid.70
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.60B | 1.58B | 1.74B | 1.48B | 1.33B | 1.21B | Gross Profit |
| 1.30B | 1.41B | 945.25M | 1.33B | 1.21B | 1.09B | EBIT |
| 605.27M | 778.91M | 814.72M | 855.80M | 614.71M | 581.99M | EBITDA |
| 1.40B | 1.30B | 1.67B | 1.36B | 1.09B | 1.02B | Net Income Common Stockholders |
| 427.44M | 460.84M | 708.33M | 599.14M | 409.99M | 455.36M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 776.97M | 640.37M | 633.86M | 168.00M | 165.43M | 248.66M | Total Assets |
| 17.61B | 17.54B | 17.98B | 18.10B | 15.48B | 14.71B | Total Debt |
| 8.00B | 8.04B | 8.14B | 7.88B | 6.79B | 6.70B | Net Debt |
| 7.23B | 7.40B | 7.51B | 7.71B | 6.63B | 6.45B | Total Liabilities |
| 8.93B | 9.10B | 9.27B | 9.09B | 7.90B | 7.83B | Stockholders Equity |
| 8.67B | 8.43B | 8.70B | 8.99B | 7.58B | 6.88B |
| Cash Flow | Free Cash Flow | ||||
| 817.12M | 1.83B | 1.07B | 899.12M | 812.86M | 594.28M | Operating Cash Flow |
| 797.57M | 1.83B | 1.07B | 1.00B | 926.48M | 801.54M | Investing Cash Flow |
| -896.30M | -1.13B | -905.88M | -1.05B | -1.57B | -539.93M | Financing Cash Flow |
| -310.05M | -688.47M | 292.56M | 57.89M | 557.05M | -210.71M |
W. P. Carey Inc. Technical Analysis
Positive
61.37
Price Trends
60.85
Positive
59.15
Positive
57.70
Positive
Market Momentum
0.03
Positive
52.35
Neutral
50.39
Neutral
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 61.37 is above the 20-day moving average (MA) of 61.19, above the 50-day MA of 60.85, and above the 200-day MA of 57.70, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 52.35 is Neutral, neither overbought nor oversold. The STOCH value of 50.39 is Neutral, 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 1 New Risks
1.
Our portfolio is concentrated by tenant industry and geographic location. Q4, 2024
W. P. Carey Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $33.73B | 12.73 | 10.12% | 5.49% | 5.32% | -0.55% | |
78 Outperform | $6.31B | 27.47 | 6.01% | 3.69% | 25.47% | -4.35% | |
70 Neutral | $526.47M | 18.02 | 9.57% | 7.59% | 1.82% | -1.03% | |
67 Neutral | $13.19B | 31.06 | 5.02% | 5.82% | -5.89% | -26.36% | |
67 Neutral | $2.92B | 25.96 | 3.79% | 7.45% | 0.73% | -37.65% | |
60 Neutral | $2.75B | 10.29 | 0.33% | 8508.22% | 5.95% | -17.48% | |
60 Neutral | $1.69B | ― | -13.01% | 13.43% | 16.69% | 39.04% |
* Real Estate Sector Average
Performance Comparison
WPC
W. P. Carey Inc.
61.37
7.92
14.82%
OLP
One Liberty Properties
23.51
1.93
8.94%
GNL
Global Net Lease
7.73
1.25
19.29%
VICI
VICI Properties
31.47
4.69
17.51%
EPRT
Essential Properties Realty
31.88
5.94
22.90%
BNL
Broadstone Net Lease
15.46
1.38
9.80%
W. P. Carey Inc. Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: 0.38%|
Next Earnings Date:Jul 25, 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. Corporate Events
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
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.