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WPC Q1 AFFO Tops Estimates on Investment Activity and Rent Growth
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Key Takeaways
WPC posted Q1 AFFO of $1.30, topping estimates as revenues rose 11.2% year over year.
W. P. Carey saw growth from acquisitions, rent escalations and $585.3M in Q1 investments.
WPC raised 2026 AFFO guidance and increased expected investment volume to $1.5B-$2.0B.
W. P. Carey Inc. (WPC - Free Report) delivered first-quarter 2026 adjusted funds from operations (AFFO) per diluted share of $1.30, topping the Zacks Consensus Estimate by 1.6%. Revenues of $453.02 million also came ahead of the consensus mark of $451.06 million, a 0.4% surprise, and rose 11.2% year over year.
The quarter reflected the accretive impact of net investment activity and contractual rent escalations across the net-lease portfolio. Contractual same-store rent registered 2.4% growth year over year on a constant-currency basis.
WPC’s Revenues Climb on Net Investment Activity
Lease revenues advanced to $402.8 million, supported by acquisitions and rent escalations across WPC’s U.S. and European portfolios. Income from finance leases and loans receivable added $27.7 million, also benefiting from net investment activity.
Operating property revenues were $12.1 million, reflecting the smaller operating-property footprint after prior self-storage dispositions. Other lease-related income contributed $10.5 million, helping broaden real estate revenues beyond base rent.
Bottom-line performance improved meaningfully, with net income attributable to the company rising to $176.3 million from $125.8 million a year ago. The increase was aided by higher gains from remeasurement of foreign debt, a lower non-cash allowance for credit loss on finance leases, higher gains on sale of real estate and the accretive contribution from investment activity, partially offset by higher impairment charges.
WPC’s Investment Pipeline Expands With Build-to-Suits
WPC posted year-to-date investment volume of $682.0 million, including $585.3 million completed during the quarter, signaling a strong start to 2026 capital deployment. Management also pointed to continued pipeline depth with visibility into significant near-term investment opportunities.
Capital projects remain an additional lever. Active capital investments and commitments totaled $178.8 million, scheduled for completion during the remainder of 2026, supporting future rent commencements and embedded growth from development and expansion activity.
In the first quarter, the company sold 19 properties for gross sale proceeds of $162.6 million.
W. P. Carey’s Balance Sheet Stays Liquid and Flexible
Liquidity stood at $2.8 billion at quarter-end, providing capacity to fund the acquisition pipeline and capital commitments. Net debt to adjusted EBITDA was 5.7X, reflecting a leverage profile the company views as conservative within its targeted range.
Capital markets activity helped reinforce funding flexibility. The company issued €500 million of senior unsecured notes due 2031 and €500 million due 2035 while also repaying €500 million of notes due 2026, extending maturities as it scales investment volume.
WPC Lifts 2026 AFFO View, Keeps Disposition Plans
Reflecting the early-year momentum, WPC raised its full-year 2026 AFFO guidance range to $5.16-$5.26 per diluted share, up from the prior guided range of $5.13-$5.23. The increase was tied to higher anticipated investment volume and a lower estimate for a potential rent loss from tenant credit events.
For 2026, WPC now expects investment volume of $1.5-$2.0 billion, up from $1.25-$1.75 billion, while maintaining its disposition volume outlook of $250-$750 million.
We now look forward to the earnings releases of other REITs like Federal Realty Investment Trust (FRT - Free Report) and OUTFRONT Media (OUT - Free Report) , slated to report on May 1 and May 7, respectively.
The Zacks Consensus Estimate for Federal Realty Investment Trust’s first-quarter 2026 FFO per share stands at $1.82, which indicates 7.1% growth year over year. FRT currently has a Zacks Rank #2.
The consensus estimate for OUTFRONT Media’s first-quarter 2026 FFO per share stands at 28 cents, which calls for significant growth year over year. OUT currently has a Zacks Rank #2.
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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WPC Q1 AFFO Tops Estimates on Investment Activity and Rent Growth
Key Takeaways
W. P. Carey Inc. (WPC - Free Report) delivered first-quarter 2026 adjusted funds from operations (AFFO) per diluted share of $1.30, topping the Zacks Consensus Estimate by 1.6%. Revenues of $453.02 million also came ahead of the consensus mark of $451.06 million, a 0.4% surprise, and rose 11.2% year over year.
The quarter reflected the accretive impact of net investment activity and contractual rent escalations across the net-lease portfolio. Contractual same-store rent registered 2.4% growth year over year on a constant-currency basis.
WPC’s Revenues Climb on Net Investment Activity
Lease revenues advanced to $402.8 million, supported by acquisitions and rent escalations across WPC’s U.S. and European portfolios. Income from finance leases and loans receivable added $27.7 million, also benefiting from net investment activity.
Operating property revenues were $12.1 million, reflecting the smaller operating-property footprint after prior self-storage dispositions. Other lease-related income contributed $10.5 million, helping broaden real estate revenues beyond base rent.
Bottom-line performance improved meaningfully, with net income attributable to the company rising to $176.3 million from $125.8 million a year ago. The increase was aided by higher gains from remeasurement of foreign debt, a lower non-cash allowance for credit loss on finance leases, higher gains on sale of real estate and the accretive contribution from investment activity, partially offset by higher impairment charges.
WPC’s Investment Pipeline Expands With Build-to-Suits
WPC posted year-to-date investment volume of $682.0 million, including $585.3 million completed during the quarter, signaling a strong start to 2026 capital deployment. Management also pointed to continued pipeline depth with visibility into significant near-term investment opportunities.
Capital projects remain an additional lever. Active capital investments and commitments totaled $178.8 million, scheduled for completion during the remainder of 2026, supporting future rent commencements and embedded growth from development and expansion activity.
In the first quarter, the company sold 19 properties for gross sale proceeds of $162.6 million.
W. P. Carey’s Balance Sheet Stays Liquid and Flexible
Liquidity stood at $2.8 billion at quarter-end, providing capacity to fund the acquisition pipeline and capital commitments. Net debt to adjusted EBITDA was 5.7X, reflecting a leverage profile the company views as conservative within its targeted range.
Capital markets activity helped reinforce funding flexibility. The company issued €500 million of senior unsecured notes due 2031 and €500 million due 2035 while also repaying €500 million of notes due 2026, extending maturities as it scales investment volume.
WPC Lifts 2026 AFFO View, Keeps Disposition Plans
Reflecting the early-year momentum, WPC raised its full-year 2026 AFFO guidance range to $5.16-$5.26 per diluted share, up from the prior guided range of $5.13-$5.23. The increase was tied to higher anticipated investment volume and a lower estimate for a potential rent loss from tenant credit events.
For 2026, WPC now expects investment volume of $1.5-$2.0 billion, up from $1.25-$1.75 billion, while maintaining its disposition volume outlook of $250-$750 million.
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-eps-surprise-chart | W.P. Carey Inc. Quote
Upcoming Earnings Releases
We now look forward to the earnings releases of other REITs like Federal Realty Investment Trust (FRT - Free Report) and OUTFRONT Media (OUT - Free Report) , slated to report on May 1 and May 7, respectively.
The Zacks Consensus Estimate for Federal Realty Investment Trust’s first-quarter 2026 FFO per share stands at $1.82, which indicates 7.1% growth year over year. FRT currently has a Zacks Rank #2.
The consensus estimate for OUTFRONT Media’s first-quarter 2026 FFO per share stands at 28 cents, which calls for significant growth year over year. OUT currently has a Zacks Rank #2.
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.