# W. P. Carey Inc. (WPC) Q2 2025 Financial Results Summary
Released on July 29, 2025, W. P. Carey Inc. (NYSE: WPC) reported its financial results for the second quarter ended June 30, 2025. Below is a summary of the key financial highlights and operational metrics.
## Financial Highlights
– **Net Income**:
– $51.2 million, a **64.2% decrease** from $142.9 million in Q2 2024.
– **Diluted Earnings Per Share (EPS)**:
– $0.23, decreased from $0.65 in the same quarter a year ago.
– **Adjusted Funds From Operations (AFFO)**:
– $282.7 million, an **9.4% increase** from $257.1 million in Q2 2024.
– AFFO per diluted share was $1.28, up from $1.17 a year ago.
– **Revenue**:
– Total revenue, inclusive of reimbursable costs, was $430.8 million, an **increase of 10.5%** from $389.7 million in Q2 2024.
– **Cash Dividend**:
– Declared a **quarterly cash dividend** of $0.90 per share, marking a **3.4% increase** from the dividend of $0.87 per share in Q2 2024.
– **AFFO Guidance for 2025**:
– Raised to a range of $4.87 to $4.95 per diluted share, reflecting expected year-over-year AFFO growth of **4.5%** at the midpoint.
## Real Estate Portfolio
– **Investment Volume**:
– Total investments of $1.1 billion completed year-to-date, with $548.6 million in Q2 alone.
– $227.2 million invested subsequent to quarter end.
– **Dispositions**:
– Disposed of 61 properties for gross proceeds of $565.0 million year-to-date, with $364.2 million from sales during Q2.
– Included 15 self-storage properties sold for $175.0 million year-to-date.
– **Same-Store Rent Growth**:
– Contractual same-store rent growth was **2.3%** year-over-year.
## Balance Sheet and Capitalization
– **Liquidity**:
– Liquidity as of June 30, 2025, was $1.7 billion, composed of $1.3 billion available under the Senior Unsecured Credit Facility, $244.8 million in cash, and $135.2 million held at qualified intermediaries.
– **Debt Issuance**:
– Issued $400 million of 4.650% Senior Unsecured Notes due 2030 post quarter-end.
## Management Commentary
– CEO Jason Fox highlighted the positive momentum in investment activity and disciplined execution of the company’s disposition strategy. This strategy has facilitated reinvestment of proceeds at attractive spreads, which has allowed the company to raise its investment outlook for 2025. Management remains confident in delivering sustained AFFO growth supported by a well-covered, growing dividend.
## Other Operational Metrics
– **Cash Flow Metrics**:
– Earnings from equity method investments totaled $11.5 million for the quarter.
– **Total Assets**:
– The company’s total assets stood at $17.998 billion, versus $17.535 billion at year-end 2024.
– **Tenant Portfolio**:
– The net lease portfolio comprised 1,600 properties, covering approximately 178 million square feet with a weighted average lease term of 12.1 years and an occupancy rate of **98.2%**.
## Summary
W. P. Carey Inc. has demonstrated significant operational growth compared with the prior year despite a sharp decline in net income. Notably, the company has managed to increase AFFO and adjust its dividend policy positively, continuing to strengthen its position in the net lease real estate sector. The forecast for the remainder of 2025 suggests a careful and calculated approach to investments poised for growth.
### Quarterly Consolidated Statements of Income (Unaudited)
_(in thousands, except share and per share amounts)_
| June 30, 2025 | March 31, 2025 | June 30, 2024 | |
|---|---|---|---|
| Revenues | |||
| Real Estate: | |||
| Lease revenues | $364,195 | $353,768 | $324,104 |
| Income from finance leases and loans receivable | 20,276 | 17,458 | 14,961 |
| Operating property revenues | 34,287 | 33,094 | 38,715 |
| Other lease-related income | 9,643 | 3,121 | 9,149 |
| 428,401 | 407,441 | 386,929 | |
| Investment Management: | |||
| Asset management revenue | 1,304 | 1,350 | 1,686 |
| Other advisory income and reimbursements | 1,072 | 1,067 | 1,057 |
| 2,376 | 2,417 | 2,743 | |
| 430,777 | 409,858 | 389,672 | |
| Operating Expenses | |||
| Depreciation and amortization | 120,595 | 129,607 | 137,481 |
| General and administrative | 24,150 | 26,967 | 24,168 |
| Reimbursable tenant costs | 17,718 | 17,092 | 14,004 |
| Operating property expenses | 16,721 | 16,544 | 18,565 |
| Property expenses, excluding reimbursable tenant costs | 13,623 | 11,706 | 13,931 |
| Stock-based compensation expense | 10,943 | 9,148 | 8,903 |
| Impairment charges — real estate | 4,349 | 6,854 | 15,752 |
| Merger and other expenses | 192 | 556 | 206 |
| 208,291 | 218,474 | 233,010 | |
| Other Income and Expenses | |||
| Other gains and (losses)(a) | -148,768 | -42,197 | 2,504 |
| Interest expense | -71,795 | -68,804 | -65,307 |
| Gain on sale of real estate, net | 52,824 | 43,777 | 39,363 |
| Earnings from equity method investments | 6,161 | 5,378 | 6,636 |
| Non-operating income(b) | 3,495 | 7,910 | 9,215 |
| -158,083 | -53,936 | -7,589 | |
| Income before income taxes | 64,403 | 137,448 | 149,073 |
| Provision for income taxes | -13,091 | -11,632 | -6,219 |
| Net Income | 51,312 | 125,816 | 142,854 |
| Net (income) loss attributable to | |||
| noncontrolling interests | -92 | 8 | 41 |
| Net Income Attributable to W. P. Carey | $51,220 | $125,824 | $142,895 |
| Basic Earnings Per Share | $0.23 | $0.57 | $0.65 |
| Diluted Earnings Per Share | $0.23 | $0.57 | $0.65 |
| Weighted-Average Shares Outstanding | |||
| Basic | 220,569,259 | 220,401,156 | 220,195,910 |
| Diluted | 220,874,935 | 220,720,310 | 220,214,118 |
| Dividends Declared Per Share | $0.900 | $0.890 | $0.870 |
—
### 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 | $13,627,841 | $12,842,869 |
| Land, buildings and improvements — operating properties | 1,005,605 | 1,198,676 |
| Net investments in finance leases and loans receivable | 1,063,719 | 798,259 |
| In-place lease intangible assets and other | 2,407,752 | 2,297,572 |
| Above-market rent intangible assets | 679,068 | 665,495 |
| Investments in real estate | 18,783,985 | 17,802,871 |
| Accumulated depreciation and amortization(a) | -3,503,850 | -3,222,396 |
| Assets held for sale, net | 60,011 | — |
| Net investments in real estate | 15,340,146 | 14,580,475 |
| Equity method investments | 311,411 | 301,115 |
| Cash and cash equivalents | 244,831 | 640,373 |
| Other assets, net | 1,115,337 | 1,045,218 |
| Goodwill | 986,472 | 967,843 |
| Total assets | $17,998,197 | $17,535,024 |
| Liabilities and Equity | ||
| Debt: | ||
| Senior unsecured notes, net | $6,540,432 | $6,505,907 |
| Unsecured term loans, net | 1,199,256 | 1,075,826 |
| Unsecured revolving credit facility | 660,872 | 55,448 |
| Non-recourse mortgages, net | 235,425 | 401,821 |
| Debt, net | 8,635,985 | 8,039,002 |
| Accounts payable, accrued expenses and other liabilities | 654,958 | 596,994 |
| Below-market rent and other intangible liabilities, net | 111,829 | 119,831 |
| Deferred income taxes | 168,184 | 147,461 |
| Dividends payable | 201,909 | 197,612 |
| Total liabilities | 9,772,865 | 9,100,900 |
| Preferred stock, $0.001 par value, | ||
| 50,000,000 shares authorized; none issued | — | — |
| Common stock, $0.001 par value, | ||
| 450,000,000 shares authorized; | 219 | 219 |
| 218,978,908 and 218,848,844 shares, | ||
| respectively, issued and outstanding | ||
| Additional paid-in capital | 11,803,487 | 11,805,179 |
| Distributions in excess of accumulated earnings | -3,424,094 | -3,203,974 |
| Deferred compensation obligation | 97,002 | 78,503 |
| Accumulated other comprehensive loss | -264,750 | -250,232 |
| Total stockholders’ equity | 8,211,864 | 8,429,695 |
