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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:77Outperform
Price Target:
$75.00
▲(12.11% Upside)
W. P. Carey Inc. demonstrates strong financial and operational performance, with robust earnings call highlights and positive technical indicators. The high P/E ratio suggests potential overvaluation, but the attractive dividend yield provides a counterbalance. The company's strategic investments and asset sales further enhance its outlook, despite some economic uncertainties.
Positive Factors
Financial Performance
WPC had the proverbial beat-and-raise in 2Q25, with its FY25 AFFOps guidance raise above the Street/BMOe.
Investment Strategy
WPC invested $1.1B YTD and is on-track to meet or exceed its revised $1.6B investment guidance target.
Negative Factors
Economic Sensitivity
WPC's portfolio has increased sensitivity to downward economic swings, in our view.
Tenant Credit Issues
WPC's recapture rate weakened, while updated guidance implies a -5¢ deceleration in 2H25 vs. 2Q25.

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

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 generates revenue primarily through long-term net lease agreements with its tenants. The company typically acquires properties and leases them back to businesses, allowing tenants to use the space while paying rent, which is structured to provide a predictable income stream. Key revenue streams include rental income from these leases, which often include contractual rent increases, and income from property management services. WPC also benefits from its strategic partnerships with tenants across various industries, enhancing its portfolio diversification and stability. Additionally, the company may realize gains from the sale of properties, further contributing to its earnings.

W. P. Carey Inc. Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 31, 2025
Earnings Call Sentiment Positive
The earnings call reflected strong performance and positive developments, including increased AFFO guidance and successful investments and asset sales. However, there remain concerns about tenant credit issues and broader economic uncertainty, particularly regarding potential trade impacts.
Q2-2025 Updates
Positive Updates
Increased AFFO Guidance
Full year AFFO growth outlook raised to 4.5% at midpoint, driven by strong investment activity and sector-leading rent growth.
Strong Investment Performance
Over $1 billion of new investments closed to date with initial cap rates averaging mid-7%, translating to an average yield in the mid-9% range.
Successful Asset Dispositions
Initial tranche of 15 self-storage properties sold for $175 million at a sub-6% cap rate, ahead of expectations.
Liquidity and Balance Sheet Strength
Issued $400 million of 5-year U.S. bonds at 4.65% coupon rate, maintaining weighted average cost of debt at 3.1% and enhancing liquidity.
Dividend Growth
Dividend declared at $0.90 per share, representing a 3.4% increase over the prior year, supported by earnings growth.
Negative Updates
Potential Tenant Credit Issues
Continued caution regarding Hellweg's turnaround plan and potential rent loss, estimated at $10 million to $15 million.
Limited Retail Investment
U.S. retail investments remain competitive with tighter pricing, leading to more focus on industrial investments.
Economic Uncertainty
Lingering uncertainty over broader economy and potential impacts from U.S.-EU trade discussions and tariffs.
Company Guidance
During W. P. Carey's second quarter 2025 earnings call, the company reported a robust performance, leading to an upward revision of their AFFO growth outlook to 4.5% at the midpoint of their revised guidance range. Key metrics highlighted include closing over $1 billion of new investments at an average cap rate in the mid-7% range, with fixed rent escalations nearing 3%. Additionally, the company successfully executed asset sales, including 15 self-storage properties sold for $175 million at a sub-6% cap rate. The company has also raised its full-year expectations for investment volume to between $1.4 billion and $1.8 billion, predominantly funded by expected dispositions of $900 million to $1.3 billion. With a strong pipeline for the second half of the year and strategic funding through non-core asset sales, W. P. Carey anticipates maintaining momentum and achieving a high-end performance within their revised guidance ranges.

W. P. Carey Inc. Financial Statement Overview

Summary
W. P. Carey Inc. exhibits solid financial health with strong cash flow generation and operational efficiency. While revenue and gross profit margins are robust, the decline in net profit margin and return on equity suggests areas for improvement. The company's leverage is moderate, supporting a stable financial position in the diversified REIT industry.
Income Statement
75
Positive
W. P. Carey Inc. shows a stable revenue growth trend with a recent TTM growth rate of 2.56%. The gross profit margin remains strong at 82.80% TTM, indicating efficient cost management. However, the net profit margin has decreased to 20.42% TTM from 29.11% in the previous year, suggesting some pressure on net earnings. EBIT and EBITDA margins are robust, reflecting solid operational efficiency.
Balance Sheet
70
Positive
The company maintains a moderate debt-to-equity ratio of 1.07 TTM, indicating a balanced leverage position. Return on equity has declined to 4.00% TTM, which may point to challenges in generating returns on shareholder investments. The equity ratio is stable, suggesting a solid asset base supported by equity.
Cash Flow
80
Positive
W. P. Carey Inc. demonstrates strong cash flow management with a free cash flow growth rate of 19.31% TTM. The operating cash flow to net income ratio is healthy at 1.46 TTM, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is slightly above 1, showing that the company generates sufficient free cash flow to cover its net income.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.64B1.58B1.74B1.47B1.26B1.17B
Gross Profit1.51B1.46B1.60B1.40B1.21B1.12B
EBITDA1.27B1.31B1.44B1.29B1.16B1.04B
Net Income335.76M460.84M708.33M599.14M409.99M455.36M
Balance Sheet
Total Assets18.00B17.54B17.98B18.10B15.48B14.71B
Cash, Cash Equivalents and Short-Term Investments244.83M640.37M633.86M168.00M165.43M248.66M
Total Debt8.64B8.04B8.14B7.88B6.79B6.70B
Total Liabilities9.77B9.10B9.27B9.09B7.90B7.83B
Stockholders Equity8.21B8.43B8.70B8.99B7.58B6.88B
Cash Flow
Free Cash Flow1.30B1.83B1.07B899.12M812.86M594.28M
Operating Cash Flow1.25B1.83B1.07B1.00B926.48M801.54M
Investing Cash Flow-1.29B-1.13B-905.88M-1.05B-1.57B-539.93M
Financing Cash Flow-790.70M-688.47M292.56M57.89M557.05M-210.71M

W. P. Carey Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price66.90
Price Trends
50DMA
64.33
Positive
100DMA
62.65
Positive
200DMA
59.46
Positive
Market Momentum
MACD
0.68
Positive
RSI
59.69
Neutral
STOCH
53.89
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 66.9 is above the 20-day moving average (MA) of 66.02, above the 50-day MA of 64.33, and above the 200-day MA of 59.46, indicating a bullish trend. The MACD of 0.68 indicates Positive momentum. The RSI at 59.69 is Neutral, neither overbought nor oversold. The STOCH value of 53.89 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 0 New Risks

W. P. Carey Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$6.11B25.906.33%3.84%25.79%2.46%
77
Outperform
$14.51B43.543.99%5.30%0.23%-41.66%
75
Outperform
$2.72B24.668.46%3.41%6.09%-65.94%
71
Outperform
$3.49B36.013.32%6.28%2.74%-37.41%
66
Neutral
$1.28B31.564.36%1.78%1.77%-8.72%
63
Neutral
$7.02B13.29-0.50%6.92%4.08%-25.24%
57
Neutral
$1.73B-11.87%11.73%-11.06%29.36%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WPC
W. P. Carey Inc.
66.90
9.65
16.86%
ESRT
Empire State Realty
7.87
-2.49
-24.03%
UE
Urban Edge Properties
21.10
1.18
5.92%
GNL
Global Net Lease
7.93
0.26
3.39%
EPRT
Essential Properties Realty
30.74
-0.22
-0.71%
BNL
Broadstone Net Lease
18.48
1.48
8.71%

W. P. Carey Inc. Corporate Events

Business Operations and StrategyFinancial Disclosures
W. P. Carey Inc. Announces $1.3 Billion Investment Volume
Positive
Sep 4, 2025

On September 4, 2025, W. P. Carey Inc. announced its year-to-date investment volume totaling approximately $1.3 billion, with new investments of $250.8 million primarily in North American and European single-tenant industrial properties. The company also reported year-to-date gross disposition proceeds of $875.0 million, including $310.0 million from recent dispositions of self-storage operating properties. CEO Jason Fox highlighted the company’s strategy of funding investments through accretive sales of non-core assets, generating a spread of approximately 150 basis points between cap rates on dispositions and new investments. The company aims to reach the high end of its guidance range, with full-year investment and disposition volume guidance set at $1.4-$1.8 billion and $900 million-$1.3 billion, respectively.

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
W. P. Carey Inc. Raises AFFO Guidance Amid Q2 Results
Positive
Jul 29, 2025

On July 29, 2025, W. P. Carey Inc. announced its financial results for the second quarter of 2025, reporting a net income of $51.2 million, a decrease from the previous year due to various financial impacts. However, the company raised its AFFO guidance for the year, reflecting strong investment activity and effective disposition strategy, which led to a 9.4% increase in AFFO per diluted share. The company also reported a 10.5% increase in revenues compared to the previous year, driven by net investment activity and rent escalations. The company completed significant investments and dispositions, maintaining a robust liquidity position and issuing $400 million in senior unsecured notes.

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.

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.

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.

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: Sep 04, 2025