We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What's in Store for W. P. Carey (WPC) This Earnings Season?
Read MoreHide Full Article
W. P. Carey Inc. (WPC - Free Report) is set to report third-quarter 2022 results on Nov 4 before market open. Both its quarterly revenues and funds from operations (FFO) per share are likely to have witnessed year-over-year growth.
In the last reported quarter, this New York-based net lease REIT delivered a surprise of 1.55% for the adjusted FFO per share.
Over the trailing four quarters, W. P. Carey’s adjusted FFO per share surpassed estimates on three occasions and missed the same on the other, the average surprise being 2.36%. The graph below depicts the surprise history of the company:
This diversified net lease REIT specializes in sale-leasebacks, build-to-suits and the acquisition of single-tenant net lease properties. WPC focuses on investing in high-quality single-tenant industrial, warehouse, office, retail and self-storage properties, mainly in the United States and Northern and Western Europe.
W. P. Carey is poised to benefit from its portfolio of operationally-critical commercial real estate, which it leases back to creditworthy tenants on a long-term basis with built-in rent escalators. Having contractual rent escalators covering nearly the entire portfolio is a saving grace in the current inflationary environment and indicates credit strength.
WPC is also focused on capitalizing on accretive investment opportunities. These investments come as part of the company’s external growth strategy and diversified approach.
The third quarter has been notable for the company, with W. P. Carey completing the $2.7 billion merger with Corporate Property Associates 18 - Global Incorporated ("CPA:18"). For WPC, the move added a well-diversified and high-quality net lease portfolio, aiding certain portfolio metrics. Per the company, this merger was immediately accretive to the real estate adjusted FFO per share, offsetting the pre-merger income earned from managing CPA:18.
Amid these, the Zacks Consensus Estimate for the company’s third-quarter revenues is pegged at $378.91 million, indicating a 16.32% increase from the prior-year quarter.
The consensus estimate for lease revenues for the third quarter is currently pegged at $346.74 million, ahead of the prior-year quarter figure of $314.19 million.
The Zacks Consensus Estimate for revenues from real estate ownership is presently pegged at $374.89 million, up from the $320.84 reported in the year-ago quarter. However, the consensus estimate for asset management revenues stands at $1.40 million, lower than the prior-year period’s reported figure of $3.87 million.
However, the choppiness in the economy and the rising geopolitical tension and its impact on economic activity might affect the demand for several real estate, and W. P. Carey’s portfolio is not immune to such impacts. Hence, while WPC’s third-quarter results are likely to reflect gains from its high-quality diversified portfolio and strategic investments, choppiness in certain real estate categories is likely to have been a concern.
W. P. Carey’s activities during the quarter under review were not adequate to secure analysts’ confidence. The consensus estimate for the quarterly FFO per share has remained unrevised at $1.29 in a month. However, it suggests a 4.03% increase year over year.
Here Is What Our Quantitative Model Predicts:
Our proven model does not conclusively predict a surprise in terms of FFO per share for W. P. Carey this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an FFO beat. However, that’s not the case here.
W. P. Carey currently carries a Zacks Rank #4 (Sell) and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Performance of Notable REITs
Prologis, Inc. (PLD - Free Report) reported a third-quarter 2022 core FFO per share of $1.73, which beat the Zacks Consensus Estimate. The figure jumped a whopping 66.4% from the year-ago quarter’s $1.04. Prologis' results reflected healthy leasing activity with solid rent growth. The bottom line also improved.
Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported a third-quarter 2022 adjusted FFO per share of $2.13, surpassing the Zacks Consensus Estimate by a cent. The reported figure also compared favorably with the year-ago quarter’s $1.95. Alexandria Real Estate Equities' results reflected decent leasing activity and rental rate growth during the quarter.
Upcoming Release
Here is a stock from the REIT sector — Douglas Emmett, Inc. (DEI - Free Report) — that you may want to consider as our model shows that this has the right combination of elements to report a surprise this quarter.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
What's in Store for W. P. Carey (WPC) This Earnings Season?
W. P. Carey Inc. (WPC - Free Report) is set to report third-quarter 2022 results on Nov 4 before market open. Both its quarterly revenues and funds from operations (FFO) per share are likely to have witnessed year-over-year growth.
In the last reported quarter, this New York-based net lease REIT delivered a surprise of 1.55% for the adjusted FFO per share.
Over the trailing four quarters, W. P. Carey’s adjusted FFO per share surpassed estimates on three occasions and missed the same on the other, the average surprise being 2.36%. The graph below depicts the surprise history of the company:
W.P. Carey Inc. Price and EPS Surprise
W.P. Carey Inc. price-eps-surprise | W.P. Carey Inc. Quote
This diversified net lease REIT specializes in sale-leasebacks, build-to-suits and the acquisition of single-tenant net lease properties. WPC focuses on investing in high-quality single-tenant industrial, warehouse, office, retail and self-storage properties, mainly in the United States and Northern and Western Europe.
W. P. Carey is poised to benefit from its portfolio of operationally-critical commercial real estate, which it leases back to creditworthy tenants on a long-term basis with built-in rent escalators. Having contractual rent escalators covering nearly the entire portfolio is a saving grace in the current inflationary environment and indicates credit strength.
WPC is also focused on capitalizing on accretive investment opportunities. These investments come as part of the company’s external growth strategy and diversified approach.
The third quarter has been notable for the company, with W. P. Carey completing the $2.7 billion merger with Corporate Property Associates 18 - Global Incorporated ("CPA:18"). For WPC, the move added a well-diversified and high-quality net lease portfolio, aiding certain portfolio metrics. Per the company, this merger was immediately accretive to the real estate adjusted FFO per share, offsetting the pre-merger income earned from managing CPA:18.
Amid these, the Zacks Consensus Estimate for the company’s third-quarter revenues is pegged at $378.91 million, indicating a 16.32% increase from the prior-year quarter.
The consensus estimate for lease revenues for the third quarter is currently pegged at $346.74 million, ahead of the prior-year quarter figure of $314.19 million.
The Zacks Consensus Estimate for revenues from real estate ownership is presently pegged at $374.89 million, up from the $320.84 reported in the year-ago quarter. However, the consensus estimate for asset management revenues stands at $1.40 million, lower than the prior-year period’s reported figure of $3.87 million.
However, the choppiness in the economy and the rising geopolitical tension and its impact on economic activity might affect the demand for several real estate, and W. P. Carey’s portfolio is not immune to such impacts. Hence, while WPC’s third-quarter results are likely to reflect gains from its high-quality diversified portfolio and strategic investments, choppiness in certain real estate categories is likely to have been a concern.
W. P. Carey’s activities during the quarter under review were not adequate to secure analysts’ confidence. The consensus estimate for the quarterly FFO per share has remained unrevised at $1.29 in a month. However, it suggests a 4.03% increase year over year.
Here Is What Our Quantitative Model Predicts:
Our proven model does not conclusively predict a surprise in terms of FFO per share for W. P. Carey this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an FFO beat. However, that’s not the case here.
W. P. Carey currently carries a Zacks Rank #4 (Sell) and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Performance of Notable REITs
Prologis, Inc. (PLD - Free Report) reported a third-quarter 2022 core FFO per share of $1.73, which beat the Zacks Consensus Estimate. The figure jumped a whopping 66.4% from the year-ago quarter’s $1.04. Prologis' results reflected healthy leasing activity with solid rent growth. The bottom line also improved.
Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported a third-quarter 2022 adjusted FFO per share of $2.13, surpassing the Zacks Consensus Estimate by a cent. The reported figure also compared favorably with the year-ago quarter’s $1.95. Alexandria Real Estate Equities' results reflected decent leasing activity and rental rate growth during the quarter.
Upcoming Release
Here is a stock from the REIT sector — Douglas Emmett, Inc. (DEI - Free Report) — that you may want to consider as our model shows that this has the right combination of elements to report a surprise this quarter.
Douglas Emmett, scheduled to report third-quarter earnings on Nov 3, currently has an Earnings ESP of +0.65% and carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.