NEW YORK, July 30, 2024 /PRNewswire/ -- W. P. Carey Inc. (NYSE:WPC) (W. P. Carey or the Company), a net lease real estate investment trust, today reported its financial results for the second quarter ended June 30, 2024. Financial Highlights 2024 Second Quarter Net income attributable to W. P. Carey (millions) $142.9 Diluted earnings per share $0.65 AFFO (millions) $257.1 AFFO per diluted share $1.17 2024 AFFO guidance revised to between $4.63 and $4.73 per diluted share, based on anticipated full year investment volume of between $1.25 billion and $1.75 billion    Second quarter cash dividend of $0.870 per share, equivalent to an annualized dividend rate of $3.48 per share Real Estate Portfolio  Investment volume of $641.0 million completed year to date, including $293.4 million during the second quarter and $67.3 million subsequent to quarter end    Active capital investments and commitments of $38.0 million scheduled to be completed in 2024    Gross disposition proceeds of $152.2 million during the second quarter, comprising:    Dispositions of $62.3 million under the Office Sale Program; and    Non-Office Sale Program dispositions of $89.9 million    Company effectively completes strategic plan to exit the office assets within its portfolio    Contractual same-store rent growth of 2.9% Balance Sheet and Capitalization Issued €650 million of 4.25% Senior Unsecured Notes due 2032   Issued $400 million of 5.375% Senior Unsecured Notes due 2034   Repaid $500 million of 4.6% Senior Unsecured Notes due April 2024   Subsequent to quarter end, repaid €500 million of 2.25% Senior Unsecured Notes due July 2024   MANAGEMENT COMMENTARY "Dispositions from our office exit strategy are now behind us and we have completed refinancing our two 2024 bond maturities, raising over a billion dollars of attractively priced debt. With our debt and equity needs this year already addressed, and as we further redeploy capital into new investments, we expect higher AFFO in the second half," said Jason Fox, Chief Executive Officer of W. P. Carey. "Although we're trimming our expectations for the full year — driven primarily by two larger-sized transactions that recently fell out of our pipeline — our liquidity remains at an all-time high, and we are very well positioned to close active deals and grow our pipeline, while taking advantage of what is typically a more active period around the end of the year."   QUARTERLY FINANCIAL RESULTS Note: Effective January 1, 2024, the Company no longer separately analyzes its business between real estate operations and investment management operations, and instead views the business as one reportable segment. As a result of this change, the Company has conformed prior period segment information to reflect how it currently views its business. Revenues Revenues, including reimbursable costs, for the 2024 second quarter totaled $389.7 million, down 13.9% from $452.6 million for the 2023 second quarter.    Lease revenues decreased primarily as a result of executing the Company's strategic plan to exit the office assets within its portfolio, including the NLOP Spin-Off in November 2023 and dispositions under the Office Sale Program during 2023 and the first half of 2024.    Income from finance leases and loans receivable decreased primarily as a result of the disposition of the U-Haul portfolio during the 2024 first quarter.    Operating property revenues decreased primarily as a result of the sale of eight hotel operating properties during 2023 and one during the 2024 second quarter (out of 12 hotel properties that converted from net lease to operating upon lease expiration during the 2023 first quarter). Net Income Attributable to W. P. Carey Net income attributable to W. P. Carey for the 2024 second quarter was $142.9 million, down 1.2% from $144.6 million for the 2023 second quarter, due primarily to the impact of the NLOP Spin-Off and dispositions under the Office Sale Program, and impairment charges recognized during the current year period, partly offset by higher gain on sale of real estate. Adjusted Funds from Operations (AFFO) AFFO for the 2024 second quarter was $1.17 per diluted share, down 14.0% from $1.36 per diluted share for the 2023 second quarter, primarily reflecting the impact of the NLOP Spin-Off and dispositions under the Office Sale Program, as well as certain lease restructurings and property vacancies. Note: Further information concerning AFFO, which is a non-GAAP supplemental performance metric, is presented in the accompanying tables and related notes. Dividend On June 13, 2024, the Company reported that its Board of Directors declared a quarterly cash dividend of $0.870 per share, equivalent to an annualized dividend rate of $3.48 per share. The dividend was paid on July 15, 2024 to shareholders of record as of June 28, 2024.   AFFO GUIDANCE The Company has lowered its guidance range for the 2024 full year by two cents per diluted share, primarily reflecting lower expectations for investment volume and self-storage operating portfolio NOI, and currently expects to report AFFO of between $4.63 and $4.73 per diluted share based on the following key assumptions: (i)   investment volume of between $1.25 billion and $1.75 billion, which has been lowered by $250 million; (ii)   disposition volume of between $1.2 billion and $1.4 billion, which is unchanged, including: (a)  completion of the Company's strategic plan to exit office, including asset sales under the Office Sale Program totaling approximately $550 million; (b)  completion of the U-Haul purchase option during the 2024 first quarter, which generated gross proceeds of $464 million; and (c)  other dispositions totaling between $150 million and $350 million; (iii) total general and administrative expenses lowered to between $98 million and $101 million. Note: The Company does not provide guidance on net income. The Company only provides guidance on AFFO and does not provide a reconciliation of this forward-looking non-GAAP guidance to net income due to the inherent difficulty in quantifying certain items necessary to provide such reconciliation as a result of their unknown effect, timing and potential significance. Examples of such items include impairments of assets, gains and losses from sales of assets, and depreciation and amortization from new acquisitions.   REAL ESTATE  Investments Year to date, the Company completed investments totaling $641.0 million, including $293.4 million during the 2024 second quarter and $67.3 million subsequent to quarter end.    The Company currently has two capital investments and commitments totaling $38.0 million scheduled to be completed during 2024. Dispositions During the 2024 second quarter, the Company disposed of 12 properties for gross proceeds totaling $152.2 million, comprising:    The disposition of three properties under the Office Sale Program for gross proceeds totaling $62.3 million, and    The disposition of nine non-Office Sale Program properties for gross proceeds totaling $89.9 million.    The Company has effectively completed the strategic plan it announced on September 21, 2023 to exit the office assets within its portfolio through (i) the spin-off of 59 office properties into Net Lease Office Properties, a separate publicly-traded REIT, which was completed on November 1, 2023 (the NLOP Spin-Off), and (ii) the disposition of 85 properties retained by W. P. Carey under the Office Sale Program.    As of July 30, 2024, one asset (representing 45 basis points of ABR) was under a binding contract for sale scheduled to close in December 2024, which will complete the Company's Office Sale Program. Contractual Same-Store Rent Growth As of June 30, 2024, contractual same store rent growth was 2.9% year over year, on a constant currency basis. Composition As of June 30, 2024, the Company's net lease portfolio consisted of 1,291 properties, comprising 170 million square feet leased to 346 tenants, with a weighted-average lease term of 12.0 years and an occupancy rate of 98.8%. In addition, the Company owned 89 self-storage operating properties, four hotel operating properties and two student housing operating properties, totaling approximately 7.3 million square feet.   BALANCE SHEET AND CAPITALIZATION Liquidity As of June 30, 2024, the Company had total liquidity of $3.2 billion, including approximately $2.0 billion of available capacity under its Senior Unsecured Credit Facility (net of amounts reserved for standby letters of credit), $1.1 billion of cash and cash equivalents, and $106.9 million of cash held at qualified intermediaries. Senior Unsecured Notes As previously announced, on May 16, 2024, the Company completed an underwritten public offering of €650 million aggregate principal amount of 4.25% Senior Notes due July 2032.    As previously announced, on June 28, 2024, the Company completed an underwritten public offering of $400 million aggregate principal amount of 5.375% Senior Notes due June 2034.    On April 1, 2024, the Company repaid $500 million of 4.6% Senior Unsecured Notes due April 2024.    Subsequent to quarter end, the Company repaid €500 million of 2.25% Senior Unsecured Notes due July 2024.   *     *     *     *     *   Supplemental Information The Company has provided supplemental unaudited financial and operating information regarding the 2024 second quarter and certain prior quarters, including a description of non-GAAP financial measures and reconciliations to GAAP measures, in a Current Report on Form 8-K filed with the Securities and Exchange Commission (SEC) on July 30, 2024, and made available on the Company's website at ir.wpcarey.com/investor-relations. Live Conference Call and Audio Webcast Scheduled for Wednesday, July 31, 2024 at 11:00 a.m. Eastern TimePlease dial in at least 10 minutes prior to the start time. Date/Time: Wednesday, July 31, 2024 at 11:00 a.m. Eastern TimeCall-in Number: 1 (877) 465-1289 (U.S.) or +1 (201) 689-8762 (international) Live Audio Webcast and Replay: www.wpcarey.com/earnings   *     *     *     *     *   W. P. Carey Inc. W. P. Carey ranks among the largest net lease REITs with a well-diversified portfolio of high-quality, operationally critical commercial real estate, which includes 1,291 net lease properties covering approximately 170 million square feet and a portfolio of 89 self-storage operating properties as of June 30, 2024. With offices in New York, London, Amsterdam and Dallas, the company remains focused on investing primarily in single-tenant, industrial, warehouse and retail properties located in the U.S. and Northern and Western Europe, under long-term net leases with built-in rent escalations. www.wpcarey.com   *     *     *     *     *   Cautionary Statement Concerning Forward-Looking Statements Certain of the matters discussed in this communication constitute forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, both as amended by the Private Securities Litigation Reform Act of 1995. The forward-looking statements include, among other things, statements regarding the intent, belief or expectations of W. P. Carey and can be identified by the use of words such as "may," "will," "should," "would," "will be," "goals," "believe," "project," "expect," "anticipate," "intend," "estimate" "opportunities," "possibility," "strategy," "maintain" or the negative version of these words and other comparable terms. These forward-looking statements include, but are not limited to, statements made by Mr. Jason Fox regarding expectations for future AFFO growth and deal volume. These statements are based on the current expectations of our management, and it is important to note that our actual results could be materially different from those projected in such forward-looking statements. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Other unknown or unpredictable risks or uncertainties, like the risks related to fluctuating interest rates, the impact of inflation on our tenants and us, the effects of pandemics and global outbreaks of contagious diseases, and domestic or geopolitical crises, such as terrorism, military conflict, war or the perception that hostilities may be imminent, political instability or civil unrest, or other conflict, and those additional risk factors discussed in reports that we have filed with the SEC, could also have material adverse effects on our future results, performance or achievements. Discussions of some of these other important factors and assumptions are contained in W. P. Carey's filings with the SEC and are available at the SEC's website at http://www.sec.gov, including Part I, Item 1A. Risk Factors in W. P. Carey's Annual Report on Form 10-K for the fiscal year ended December 31, 2023. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this communication, unless noted otherwise. Except as required under the federal securities laws and the rules and regulations of the SEC, W. P. Carey does not undertake any obligation to release publicly any revisions to the forward-looking statements to reflect events or circumstances after the date of this communication or to reflect the occurrence of unanticipated events. Institutional Investors:Peter Sands1 (212) Individual Investors:W. P. Carey Inc.1 (212) Press Contact:Anna McGrath1 (212)   *     *     *     *     *   W. P. CAREY INC. Consolidated Balance Sheets (Unaudited) (in thousands, except share and per share amounts) June 30, 2024 December 31, 2023 Assets Investments in real estate: Land, buildings and improvements — net lease and other $              12,341,979 $              12,095,458 Land, buildings and improvements — operating properties 1,238,340 1,256,249 Net investments in finance leases and loans receivable 667,667 1,514,923 In-place lease intangible assets and other 2,256,793 2,308,853 Above-market rent intangible assets 676,666 706,773 Investments in real estate 17,181,445 17,882,256 Accumulated depreciation and amortization (a) (3,096,516) (3,005,479) Assets held for sale, net 7,743 37,122 Net investments in real estate 14,092,672 14,913,899 Equity method investments 356,220 354,261 Cash and cash equivalents 1,085,967 633,860 Other assets, net 1,261,222 1,096,474 Goodwill 973,204 978,289 Total assets $              17,769,285 $              17,976,783 Liabilities and Equity Debt: Senior unsecured notes, net $                6,519,887 $                6,035,686 Unsecured term loans, net 1,100,356 1,125,564 Unsecured revolving credit facility 15,005 403,785 Non-recourse mortgages, net 467,200 579,147 Debt, net 8,102,448 8,144,182 Accounts payable, accrued expenses and other liabilities 548,397 615,750 Below-market rent and other intangible liabilities, net 128,710 136,872 Deferred income taxes 155,716