W. P. Carey Inc. (WPC)
NYSE:WPC
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W. P. Carey Inc.
(NYSE:WPC)
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Rating:72Outperform
Price Target:
$81.00
▲(15.86% Upside)
Action:ReiteratedDate:02/25/26
The score is driven primarily by solid financial fundamentals (strong margins and cash generation) and a positive earnings outlook (continued AFFO growth guidance supported by liquidity and investment activity). Technicals are also constructive with the stock trading above key moving averages. The main offset is valuation: a high P/E reduces upside comfort despite the attractive ~5% dividend yield.
Positive Factors
Strong cash generation
W. P. Carey’s consistent operating and free cash flow provides durable funding for dividends, accretive acquisitions and debt servicing. Reliable FCF supports the REIT’s payout (~73% of AFFO) and investment program, reducing reliance on opportunistic capital during normal market cycles.
Negative Factors
Rising leverage
Leverage moving toward parity with equity increases interest-rate and refinancing exposure over the medium term. Higher net leverage constrains financial flexibility, raises covenant and refinancing sensitivity, and could limit the pace of accretive investing if rates or credit spreads widen.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
W. P. Carey’s consistent operating and free cash flow provides durable funding for dividends, accretive acquisitions and debt servicing. Reliable FCF supports the REIT’s payout (~73% of AFFO) and investment program, reducing reliance on opportunistic capital during normal market cycles.
Read all positive factors
W. P. Carey Inc. (WPC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.32B
Dividend Yield5.51%
Average Volume (3M)1.29M
Price to Earnings (P/E)30.4
Beta (1Y)0.27
Revenue Growth5.59%
EPS Growth-34.75%
CountryUS
Employees203
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.85
Shares Outstanding219,169,600
10 Day Avg. Volume1,466,209
30 Day Avg. Volume1,290,771
Financial Highlights & Ratios
PEG Ratio31.80
Price to Book (P/B)1.75
Price to Sales (P/S)8.27
P/FCF Ratio13.01
Enterprise Value/Market Cap1.57
Enterprise Value/Revenue12.41
Enterprise Value/Gross Profit18.20
Enterprise Value/Ebitda18.18
Forecast
1Y Price Target
$73.56Price Target Upside5.22% Upside
Rating ConsensusHold
Number of Analyst Covering10
EPS Forecast (FY)2.63
Revenue Forecast (FY)$1.75B
W. P. Carey Inc. Business Overview & Revenue Model
Company Description
W. 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 ...
How the Company Makes Money
W. P. Carey generates revenue primarily through rental income from its extensive portfolio of properties leased to tenants under long-term net lease agreements. These leases typically require tenants to cover property expenses such as maintenance,...
W. P. Carey Inc. Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 24, 2026
Earnings Call Sentiment Positive
The call presents a broadly positive operational and financial picture driven by record investment activity ($2.1B), strong internal rent growth (contractual same-store +2.4% and comprehensive +2.8%), solid liquidity ($2.2B) and low-cost financing (2025 weighted average debt 3.2%), leading to healthy AFFO growth in 2025 (+5.7%) and continued AFFO growth guidance for 2026 (~4.2% at midpoint). Management highlights multiple sources of capital, attractive spreads (~150 bps on average) from recycling non-core assets, and strategic initiatives (carry tenant solutions, retail expansion) that support future growth. Offsetting factors include expected cap-rate compression to mid/low 7% in 2026, conservative guidance assumptions including a credit-loss cushion ($10–$15M), some near-term declines in non-operating income, and concentration risks from sizable tenant additions (Lifetime Fitness). Overall the positives (strong execution, balance sheet strength, and accretive pipeline) materially outweigh the headwinds, though management is taking a conservative stance in initial guidance.Positive Updates
Strong AFFO Growth
AFFO per share for full year 2025 was $4.97, representing 5.7% year-over-year growth; Q4 AFFO per share was $1.27, up 5% YoY.
Negative Updates
Cap Rate Compression / Competitive Pressure
Management expects 2026 cash cap rates to be incrementally lower (mid-to-low 7% range) versus 2025's 7.6% average, citing potential rate movements and some increased competition — a potential headwind to going-in yields.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong AFFO Growth
AFFO per share for full year 2025 was $4.97, representing 5.7% year-over-year growth; Q4 AFFO per share was $1.27, up 5% YoY.
Read all positive updates
Company Guidance
W. P. Carey opened 2026 with initial AFFO guidance of $5.13–$5.23 per share (implying ~4.2% y/y growth at the midpoint) alongside acquisition guidance of $1.25–$1.75 billion (expected cash cap rates mid‑to‑low 7% vs. a 7.6% weighted average in 2025) and disposition guidance of $250–$750 million; the plan assumes ~ $300 million of retained cash flow, more than $400 million of unsettled forward equity available (6.3M shares sold via ATM for $423M at a $67.53 weighted avg), and flexibility to fund incremental deals. Key operating assumptions include contractual same‑store rent growth in the mid‑2% range (2025 contractual growth was 2.4%, comprehensive 2.8%), VPI‑linked escalations averaging 2.6% and fixed escalations 2.1% (each ~50% of ABR), portfolio occupancy >98%, and a conservative rent‑loss reserve of $10–$15 million (60–90 bps) for 2026. Expense and other guidance: G&A $103–$106 million, non‑reimbursed property expenses $56–$60 million (including ~$6 million demolition costs), other lease‑related income low‑to‑mid $30s million (≈$20M expected in H1), tax on AFFO $45–$49 million, investment management fees ≈$5 million, and non‑operating income $7–$11 million. Balance sheet and capital metrics assume a 2026 weighted average debt rate in the low‑ to‑mid‑3% range (3.2% in 2025), net debt/adjusted EBITDA targeted in the mid‑to‑high‑5x range (5.6x incl. unsettled forwards), liquidity of ~$2.2 billion, and a quarterly dividend of $0.92 (annualized yield >5%, payout ratio ≈73%), with continued emphasis on accretive spreads (historical ~150 bps to dispositions, yields just above 9% and average lease durations ~17 years) and a sizable near‑term pipeline (≈$312M closed YTD, several $100M at various stages).W. P. Carey Inc. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.72B | 1.58B | 1.74B | 1.47B | 1.26B |
| Gross Profit | 491.49M | 1.46B | 1.60B | 1.40B | 1.21B |
| EBITDA | 1.32B | 1.31B | 1.44B | 1.29B | 1.16B |
| Net Income | 466.36M | 460.84M | 708.33M | 599.14M | 409.99M |
Balance Sheet | |||||
| Total Assets | 17.99B | 17.54B | 17.98B | 18.10B | 15.48B |
| Cash, Cash Equivalents and Short-Term Investments | 155.33M | 640.62M | 634.86M | 168.00M | 165.43M |
| Total Debt | 8.72B | 8.18B | 8.28B | 7.88B | 6.94B |
| Total Liabilities | 9.86B | 9.10B | 9.27B | 9.09B | 7.90B |
| Stockholders Equity | 8.12B | 8.43B | 8.70B | 8.99B | 7.58B |
Cash Flow | |||||
| Free Cash Flow | 1.09B | 1.70B | 951.81M | 899.12M | 812.86M |
| Operating Cash Flow | 1.28B | 1.83B | 1.07B | 1.00B | 926.48M |
| Investing Cash Flow | -960.14M | -1.13B | -905.88M | -1.05B | -1.57B |
| Financing Cash Flow | -761.71M | -688.47M | 292.56M | 57.89M | 557.05M |
W. P. Carey Inc. Technical Analysis
Positive
69.91
Price Trends
70.02
Negative
67.43
Positive
65.38
Positive
Market Momentum
-0.45
Negative
55.17
Neutral
88.96
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 69.91 is above the 20-day moving average (MA) of 68.88, below the 50-day MA of 70.02, and above the 200-day MA of 65.38, indicating a neutral trend. The MACD of -0.45 indicates Negative momentum. The RSI at 55.17 is Neutral, neither overbought nor oversold. The STOCH value of 88.96 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $6.52B | 23.43 | 6.45% | 3.88% | 24.60% | 8.05% | |
72 Outperform | $15.32B | 30.43 | 5.68% | 5.51% | 5.59% | -34.75% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
63 Neutral | $3.54B | 31.75 | 3.41% | 6.72% | 3.87% | -37.59% | |
62 Neutral | $2.71B | 25.79 | 8.71% | 3.99% | 5.29% | -60.36% | |
61 Neutral | $864.76M | 13.27 | 4.56% | 2.16% | 0.45% | -24.85% | |
54 Neutral | $2.00B | -8.52 | -12.68% | 10.29% | -28.94% | -28.24% |
* Real Estate Sector Average
WPC
W. P. Carey Inc.
69.91
16.84
31.73%
ESRT
Empire State Realty
5.05
-1.60
-24.11%
UE
Urban Edge Properties
20.42
4.75
30.28%
GNL
Global Net Lease
9.32
3.14
50.91%
EPRT
Essential Properties Realty
31.00
3.67
13.42%
BNL
Broadstone Net Lease
18.51
4.75
34.47%
W. P. Carey Inc. Corporate Events
Business Operations and StrategyPrivate Placements and Financing
W. P. Carey Completes Major Euro Notes and Equity Offering
Positive
Feb 24, 2026
On February 24, 2026, W. P. Carey Inc. completed a €1.0 billion public offering of senior unsecured notes, split evenly into 3.250% notes due 2031 and 3.750% notes due 2035, ranking pari passu with its other unsecured debt and governed by ex...
Business Operations and StrategyPrivate Placements and Financing
W. P. Carey Announces Forward Equity Offering for Growth
Positive
Feb 19, 2026
On February 17, 2026, W. P. Carey Inc. entered into an underwriting agreement tied to an underwritten public offering of 6,000,000 common shares on a forward basis at $71.38 per share, with gross proceeds of $432 million and a 30-day option for un...
Business Operations and StrategyPrivate Placements and Financing
W. P. Carey Announces €1 Billion Senior Notes Offering
Positive
Feb 13, 2026
On February 12, 2026, W. P. Carey Inc. priced an underwritten public offering of €1.0 billion of senior unsecured notes, split between €500 million of 3.250% notes due 2031 and €500 million of 3.750% notes due 2035, with a weight...
Business Operations and StrategyDividendsFinancial Disclosures
W. P. Carey Posts Strong Q4 Results, Raises Outlook
Positive
Feb 10, 2026
W. P. Carey reported on February 10, 2026 that fourth-quarter 2025 net income surged to $148.3 million and AFFO rose to $1.27 per share, while full-year 2025 net income reached $466.4 million and AFFO climbed 5.7% to $4.97 per share. The REIT lift...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
W. P. Carey Reports Record 2025 Investment Activity
Positive
Jan 7, 2026
On January 7, 2026, W. P. Carey reported a record $2.1 billion of investment volume for full-year 2025 at a weighted-average initial cash cap rate of about 7.6% and an estimated average yield of 9.2%, driven largely by single-tenant warehouse and ...
Executive/Board Changes
W. P. Carey Inc. Board Member Resigns for Health Reasons
Neutral
Dec 12, 2025
Mark A. Alexander, a board member of W. P. Carey Inc., announced his resignation effective December 12, 2025, due to personal health reasons. His departure is not due to any disagreements with the company’s operations, policies, or practices...
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.