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What's in Store for W. P. Carey (WPC) This Earnings Season?
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W. P. Carey Inc. (WPC - Free Report) is set to report fourth-quarter and full-year 2022 results on Feb 10 before market open. While its quarterly revenues are likely to have witnessed year-over-year growth, funds from operations (FFO) per share might have displayed a decline from the year-ago reported figure.
In the last reported quarter, this New York-based net lease REIT delivered a surprise of 5.43% for the adjusted FFO per share.
Over the trailing four quarters, W. P. Carey’s adjusted FFO per share surpassed estimates on each occasion, the average surprise being 4.11%. 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 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.
W. P. Carey focuses on investing in high-quality single-tenant industrial, warehouse, office, retail and self-storage properties. These are located mainly in the United States and Northern and Western Europe.
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.
W. P. Carey’s investment volume for the full-year 2022 reached $1.42 billion. High-quality, single-tenant warehouse and industrial properties comprised roughly two-thirds of its 2022 investment volume.
Amid these, the Zacks Consensus Estimate for the company’s fourth-quarter revenues is pegged at $398.15 million, indicating a 6.21% increase from the prior-year quarter. The consensus estimate for lease revenues for the fourth quarter is currently pegged at $338.24 million, ahead of the prior-year quarter’s figure of $305.09 million.
The Zacks Consensus Estimate for revenues from real estate ownership is presently pegged at $392.97 million, up from the $370.32 reported in the year-ago quarter.
However, choppiness in the economy 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 fourth-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 adjusted FFO per share has remained unrevised at $1.29 in a month. It suggests a decline of 0.8% year over year.
For the full-year 2022, WPC expected adjusted FFO per share in the range of $5.25-$5.31. The full-year guidance is based on some key assumptions, including investments in the company's real estate portfolio between $1.5 and $2.0 billion, dispositions from the company's real estate portfolio between $200 and $300 million and total general and administrative expenses between $88 and $90 million.
For the full year, the Zacks Consensus Estimate for adjusted FFO per share is pegged at $5.30. The figure indicates a 5.37% increase year over year on 10.26% year-over-year growth in revenues to $1.47 billion.
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 fourth-quarter 2022 core FFO per share of $1.24, beating the Zacks Consensus Estimate of $1.21. The figure climbed 10.7% from the year-ago quarter. Prologis’ quarterly results reflected better-than-anticipated revenues, driven by healthy leasing activity and solid rent growth.
Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported a fourth-quarter 2022 adjusted FFO per share of $2.14, surpassing the Zacks Consensus Estimate by a cent. The reported figure also compared favorably with the year-ago quarter’s $1.97. 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 — Public Storage (PSA - 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.
Public Storage, scheduled to report fourth-quarter and full-year 2022 results on Feb 21, currently has an Earnings ESP of +0.22% and carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
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.
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What's in Store for W. P. Carey (WPC) This Earnings Season?
W. P. Carey Inc. (WPC - Free Report) is set to report fourth-quarter and full-year 2022 results on Feb 10 before market open. While its quarterly revenues are likely to have witnessed year-over-year growth, funds from operations (FFO) per share might have displayed a decline from the year-ago reported figure.
In the last reported quarter, this New York-based net lease REIT delivered a surprise of 5.43% for the adjusted FFO per share.
Over the trailing four quarters, W. P. Carey’s adjusted FFO per share surpassed estimates on each occasion, the average surprise being 4.11%. 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 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.
W. P. Carey focuses on investing in high-quality single-tenant industrial, warehouse, office, retail and self-storage properties. These are located mainly in the United States and Northern and Western Europe.
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.
W. P. Carey’s investment volume for the full-year 2022 reached $1.42 billion. High-quality, single-tenant warehouse and industrial properties comprised roughly two-thirds of its 2022 investment volume.
Amid these, the Zacks Consensus Estimate for the company’s fourth-quarter revenues is pegged at $398.15 million, indicating a 6.21% increase from the prior-year quarter. The consensus estimate for lease revenues for the fourth quarter is currently pegged at $338.24 million, ahead of the prior-year quarter’s figure of $305.09 million.
The Zacks Consensus Estimate for revenues from real estate ownership is presently pegged at $392.97 million, up from the $370.32 reported in the year-ago quarter.
However, choppiness in the economy 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 fourth-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 adjusted FFO per share has remained unrevised at $1.29 in a month. It suggests a decline of 0.8% year over year.
For the full-year 2022, WPC expected adjusted FFO per share in the range of $5.25-$5.31. The full-year guidance is based on some key assumptions, including investments in the company's real estate portfolio between $1.5 and $2.0 billion, dispositions from the company's real estate portfolio between $200 and $300 million and total general and administrative expenses between $88 and $90 million.
For the full year, the Zacks Consensus Estimate for adjusted FFO per share is pegged at $5.30. The figure indicates a 5.37% increase year over year on 10.26% year-over-year growth in revenues to $1.47 billion.
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 fourth-quarter 2022 core FFO per share of $1.24, beating the Zacks Consensus Estimate of $1.21. The figure climbed 10.7% from the year-ago quarter. Prologis’ quarterly results reflected better-than-anticipated revenues, driven by healthy leasing activity and solid rent growth.
Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported a fourth-quarter 2022 adjusted FFO per share of $2.14, surpassing the Zacks Consensus Estimate by a cent. The reported figure also compared favorably with the year-ago quarter’s $1.97. 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 — Public Storage (PSA - 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.
Public Storage, scheduled to report fourth-quarter and full-year 2022 results on Feb 21, currently has an Earnings ESP of +0.22% 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.