W. P. Carey Reports Strong Financial Performance in Q1 2025

W. P. Carey Inc., a leading player in the net lease real estate investment trust sector, has unveiled its first quarter financial results for 2025. The company reported a net income attributable to W. P. Carey of $125.8 million, translating to earnings of $0.57 per diluted share. These figures represent a slight decline of 21% compared to the previous year's first quarter, primarily due to increased losses associated with foreign debt remeasurement and a higher non-cash allowance for credit loss on finance leases and loans receivable.

Financial Highlights

In breaking down the critical numbers, W. P. Carey reported that its Adjusted Funds From Operations (AFFO) reached $257.8 million for the quarter, translating to $1.17 per diluted share. They reaffirmed their guidance for the entire year, projecting that AFFO will fall between $4.82 and $4.92 per diluted share based on anticipated investment volumes between $1 billion and $1.5 billion.

Additionally, the board declared a cash dividend of $0.890 per share, representing an annualized dividend rate of $3.56 per share, which marks a 2.9% increase from the first quarter of 2024. The dividend was paid to shareholders of record as of March 31, 2025.

Investment and Real Estate Portfolio Performance

The company's real estate activities remain vibrant, resulting in an investment total of $448.6 million year-to-date, including $275.1 million completed during the first quarter alone. Post-quarter investments totaled an additional $173.5 million, indicating a strong pace of capital deployment. This quarter also saw gross disposition proceeds of $129.8 million.

W. P. Carey's robust real estate portfolio comprises 1,614 properties that span approximately 177 million square feet. The occupancy rate for these properties stood at an impressive 98.3%, with a weighted average lease term of 12.3 years. The company also noted a 2.4% growth in same-store contractual rent, year-over-year, on a constant currency basis.

Balance Sheet Resilience

On the balance sheet front, W. P. Carey recently repaid $450 million of its senior unsecured notes due in February 2025, and successfully refinanced an existing €500 million term loan, extending its maturity to 2029. The refinancing also involved an interest rate swap to fix the interest rate at a competitive 2.80%. As a result, the company boasted total liquidity of approximately $2 billion, favorably positioning itself for future growth.

CEO Jason Fox expressed optimism about the company's performance, stating, "We've had a strong start to the year... We believe we are well-positioned to continue executing on our business plan." He emphasized the resilience of W. P. Carey's portfolio during economic fluctuations, complemented by a robust balance sheet that supports sustainable external growth without needing to issue new capital this year.

Looking ahead, W. P. Carey anticipates that growth and visibility in transaction activity will improve as the year progresses. The company is committed to navigating through uncertainties, driven by its long-term strategy and operational capabilities.

Conclusion

W. P. Carey's strong financial results for the first quarter of 2025 highlight its effective management and robust investment strategy. The ongoing growth in investments, combined with a commitment to delivering value through dividends, positions the company favorably as it moves through the economic landscape. Stakeholders remain encouraged as the company reassures them of its profitability and stable growth trajectory for the remainder of the year.