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Results reflected higher revenues, aided by strong investment activity and a disciplined disposition strategy. WPC raised its full-year 2025 AFFO per share guidance.
Quarterly revenues of $384.5 million underperformed the Zacks Consensus Estimate of $416.3 million. However, revenues increased 13.4% year over year.
WPC’s Q2 in Detail
In the second quarter, lease revenues increased 12.4% year over year to $364.2 million. The growth in lease revenues was aided by net investment activity and rent escalations.
Income from finance leases and loans receivable increased significantly year over year, mainly due to the net investment activity.
Operating property revenues decreased 11.4% year over year due to the sale of one hotel operating property in the second quarter of 2024 and the conversion of certain self-storage operating properties to net leases in the third quarter of 2024 and the second quarter of 2025.
The total investment value for the quarter stood at $548.6 million. In the second quarter of 2025, the company committed to fund new capital investments and commitments to the tune of $108.3 million, scheduled to be completed in 2027. As of July 29, 2025, WPC had $109.5 million worth of six capital investments and commitments to be completed in 2025.
In the second quarter, the company sold 46 properties for gross sale proceeds of $364.2 million.
As of June 30, 2025, the contractual same-store rent grew 2.3% year over year on a constant-currency basis.
WPC’s Balance Sheet Position
As of June 30, 2025, the company had a total liquidity of $1.7 billion, including around $1.3 billion of available capacity under its senior unsecured credit facility, $244.8 million of cash and cash equivalents and $135.2 million of cash held at qualified intermediaries.
WPC’s 2025 Outlook
WPC has raised its guidance for 2025 due to higher expected investment volume and a lower estimate of potential rent loss from tenant credit events.
For 2025, W.P. Carey expects its AFFO to be between $4.87 and $4.95 per share.
The REIT expects an investment volume between $1.4 and $1.8 billion and a disposition volume between $900 million and $1.3 billion for 2025.
We now look forward to the earnings releases of other REITs like Cousins Properties (CUZ - Free Report) and Vornado Realty Trust (VNO - Free Report) , slated to report on July 31 and Aug. 4, respectively
The Zacks Consensus Estimate for Cousins Properties’ second-quarter 2025 FFO per share stands at 70 cents, which indicates 2.9% growth year over year. CUZ currently has a Zacks Rank #3.
The Zacks Consensus Estimate for Vornado Realty Trust’s second-quarter 2025 FFO per share is pegged at 53 cents, which implies a 7.0% year-over-year decrease. VNO currently carries a Zacks Rank #3.
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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W.P. Carey's FFO Surpasses Estimates in Q2, Revenues Grow Y/Y
Key Takeaways
W.P. Carey (WPC - Free Report) reported second-quarter 2025 adjusted funds from operations (AFFO) per share of $1.28, surpassing the Zacks Consensus Estimate of $1.23. The figure improved 9.4% from the year-ago quarter.
Results reflected higher revenues, aided by strong investment activity and a disciplined disposition strategy. WPC raised its full-year 2025 AFFO per share guidance.
Quarterly revenues of $384.5 million underperformed the Zacks Consensus Estimate of $416.3 million. However, revenues increased 13.4% year over year.
WPC’s Q2 in Detail
In the second quarter, lease revenues increased 12.4% year over year to $364.2 million. The growth in lease revenues was aided by net investment activity and rent escalations.
Income from finance leases and loans receivable increased significantly year over year, mainly due to the net investment activity.
Operating property revenues decreased 11.4% year over year due to the sale of one hotel operating property in the second quarter of 2024 and the conversion of certain self-storage operating properties to net leases in the third quarter of 2024 and the second quarter of 2025.
The total investment value for the quarter stood at $548.6 million. In the second quarter of 2025, the company committed to fund new capital investments and commitments to the tune of $108.3 million, scheduled to be completed in 2027. As of July 29, 2025, WPC had $109.5 million worth of six capital investments and commitments to be completed in 2025.
In the second quarter, the company sold 46 properties for gross sale proceeds of $364.2 million.
As of June 30, 2025, the contractual same-store rent grew 2.3% year over year on a constant-currency basis.
WPC’s Balance Sheet Position
As of June 30, 2025, the company had a total liquidity of $1.7 billion, including around $1.3 billion of available capacity under its senior unsecured credit facility, $244.8 million of cash and cash equivalents and $135.2 million of cash held at qualified intermediaries.
WPC’s 2025 Outlook
WPC has raised its guidance for 2025 due to higher expected investment volume and a lower estimate of potential rent loss from tenant credit events.
For 2025, W.P. Carey expects its AFFO to be between $4.87 and $4.95 per share.
The REIT expects an investment volume between $1.4 and $1.8 billion and a disposition volume between $900 million and $1.3 billion for 2025.
WPC's Rank
WPC currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
W.P. Carey Inc. Price, Consensus and EPS Surprise
W.P. Carey Inc. price-consensus-eps-surprise-chart | W.P. Carey Inc. Quote
Upcoming Earnings Releases
We now look forward to the earnings releases of other REITs like Cousins Properties (CUZ - Free Report) and Vornado Realty Trust (VNO - Free Report) , slated to report on July 31 and Aug. 4, respectively
The Zacks Consensus Estimate for Cousins Properties’ second-quarter 2025 FFO per share stands at 70 cents, which indicates 2.9% growth year over year. CUZ currently has a Zacks Rank #3.
The Zacks Consensus Estimate for Vornado Realty Trust’s second-quarter 2025 FFO per share is pegged at 53 cents, which implies a 7.0% year-over-year decrease. VNO currently carries a Zacks Rank #3.
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.