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W.P. Carey's Q3 FFO Surpasses Estimates, Revenues Grow Y/Y

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Key Takeaways

  • W.P. Carey's Q3 AFFO per share rose 5.9% year over year to $1.25, topping the consensus estimate.
  • Revenues climbed 8.7% to $429 million, fueled by net investment activity and rent escalations.
  • W.P. Carey lifted its 2025 AFFO guidance on higher investment expectations and lower rent loss risk.

W.P. Carey (WPC - Free Report) reported third-quarter 2025 adjusted funds from operations (AFFO) per share of $1.25, surpassing the Zacks Consensus Estimate of $1.23. The figure improved 5.9% 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 $429 million outpaced the Zacks Consensus Estimate of $422.2 million. Moreover, revenues increased 8.7% year over year.

WPC’s Q3 in Detail

In the third quarter, lease revenues increased 11.4% year over year to $372.1 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 28.3% year over year due to the sale of several self-storage operating properties in the second and third quarters of 2025 and the conversion of certain self-storage operating properties to net leases in the third quarter of 2024 and the first nine months of 2025.

The total investment value for the quarter stood at $656.4 million. As of Oct. 28, 2025, the company has five capital investments and commitments to the tune of $67.1 million, scheduled to be completed in 2025, and six capital investments and commitments totaling $181 million to be completed by the first quarter of 2027.

In the third quarter, the company sold 29 properties for gross sale proceeds of $495.2 million.

As of Sept. 30, 2025, the contractual same-store rent grew 2.4% year over year on a constant-currency basis.

WPC’s Balance Sheet Position

As of Sept. 30, 2025, the company had a total liquidity of $2.1 billion, including around $1.6 billion of available capacity under its senior unsecured credit facility, $249 million of cash and cash equivalents and $64.1 million of cash held at qualified intermediaries.

WPC’s 2025 Outlook

WPC has raised and narrowed its guidance for 2025 AFFO per share 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 $4.93 and $4.99 per share, up from the earlier guide range of $4.87-$4.95.

The REIT expects an investment volume between $1.8 and $2.1 billion and a disposition volume between $1.3 billion and $1.5 billion for 2025.

WPC's Zacks 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 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 VICI Properties (VICI - Free Report) and Federal Realty Investment Trust (FRT - Free Report) , slated to report on Oct. 30 and Oct. 31, respectively.

The Zacks Consensus Estimate for VICI Properties’ third-quarter 2025 FFO per share is pegged at 59 cents, which implies a 3.5% year-over-year increase. VICI currently carries a Zacks Rank #2.

The consensus estimate for Federal Realty’s third-quarter 2025 FFO per share stands at $1.76, which indicates 2.9% growth year over year. FRT currently has a Zacks Rank #3 (Hold).

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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