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Revenues of $461.06 million surpassed the consensus mark of $454.11 million and rose 7% year over year. The results reflected accretive net investment activity and contractual rent increases, with same-store rent growth reaching 2.6% on a constant-currency basis.
WPC's Lease Revenues Rise on Investments
Lease revenues increased 12.5% year over year to $409.66 million, primarily driven by net investment activity. Income from finance leases and loans receivable advanced 34% to $27.16 million.
Other lease-related income rose to $11.21 million from $9.64 million. In contrast, operating property revenues declined to $11.64 million from $34.29 million, mainly reflecting the sale of the company’s self-storage operating portfolio.
WPC Accelerates Real Estate Investment Activity
The net-lease REIT completed $706.5 million of investments during the second quarter, taking year-to-date volume to $1.3 billion. The company also had $132.7 million of active capital investments and commitments scheduled for completion during the second half of 2026.
WPC disposed of nine properties for gross proceeds of $83.7 million during the quarter. First-half disposition proceeds reached $246.2 million from the sale of 28 properties, supporting its ongoing capital recycling strategy.
W. P. Carey Maintains Strong Portfolio Metrics
The net-lease portfolio comprised 1,748 properties spanning about 188.5 million square feet and leased to 384 tenants. Occupancy remained high at 98.5%, while the weighted-average remaining lease term was 12.2 years.
Annualized base rent totaled $1.64 billion. The top 10 tenants represented 18.1% of net-lease annualized base rent, while tenants with investment-grade ratings or investment-grade parent companies accounted for 22.7%.
WPC Retains Ample Liquidity for Growth
WPC ended the quarter with liquidity of $2.74 billion, including $1.9 billion of available capacity under its senior unsecured credit facility. Cash and cash equivalents stood at $163.54 million.
Net debt to annualized adjusted EBITDA was 5.5X, or 5.1X, including unsettled forward equity. During the quarter, the company settled forward agreements for approximately $345 million in net proceeds and retained access to about $691 million from remaining unsettled agreements.
W. P. Carey Raises 2026 AFFO Guidance
Management raised its full-year 2026 AFFO guidance range to $5.19-$5.27 per share from $5.16-$5.26. The revised range implies 5.2% year-over-year growth at the midpoint. The Zacks Consensus Estimate is pegged at $5.28, which lies above the projected range.
WPC also increased its investment-volume assumption to $1.7-$2.1 billion from $1.5-$2.0 billion. The updated outlook reflects higher anticipated lease revenues, improved expectations for potential rent losses and lower projected expenses, partly offset by the impact of settling forward equity.
Digital Realty Trust (DLR - Free Report) reported second-quarter 2026 core FFO per share, excluding net promote, of $2.13, up 13.9% from a year ago. The figure surpassed the Zacks Consensus Estimate by 7.6%. Strong bookings, a record backlog and sharp renewal rent increases supported the quarter.
Prologis Inc. (PLD - Free Report) reported second-quarter 2026 core FFO per share of $1.63, outpacing the Zacks Consensus Estimate of $1.53. Results reflected strengthening demand, disciplined execution and expanding capabilities across logistics, data centers and energy.
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 Q2 AFFO Beats Estimates on Investment Activity
Key Takeaways
W. P. Carey Inc. (WPC - Free Report) reported second-quarter 2026 adjusted funds from operations (AFFO) of $1.34 per share, beating the Zacks Consensus Estimate by 2.3%. The metric increased 4.7% from the year-ago quarter.
Revenues of $461.06 million surpassed the consensus mark of $454.11 million and rose 7% year over year. The results reflected accretive net investment activity and contractual rent increases, with same-store rent growth reaching 2.6% on a constant-currency basis.
WPC's Lease Revenues Rise on Investments
Lease revenues increased 12.5% year over year to $409.66 million, primarily driven by net investment activity. Income from finance leases and loans receivable advanced 34% to $27.16 million.
Other lease-related income rose to $11.21 million from $9.64 million. In contrast, operating property revenues declined to $11.64 million from $34.29 million, mainly reflecting the sale of the company’s self-storage operating portfolio.
WPC Accelerates Real Estate Investment Activity
The net-lease REIT completed $706.5 million of investments during the second quarter, taking year-to-date volume to $1.3 billion. The company also had $132.7 million of active capital investments and commitments scheduled for completion during the second half of 2026.
WPC disposed of nine properties for gross proceeds of $83.7 million during the quarter. First-half disposition proceeds reached $246.2 million from the sale of 28 properties, supporting its ongoing capital recycling strategy.
W. P. Carey Maintains Strong Portfolio Metrics
The net-lease portfolio comprised 1,748 properties spanning about 188.5 million square feet and leased to 384 tenants. Occupancy remained high at 98.5%, while the weighted-average remaining lease term was 12.2 years.
Annualized base rent totaled $1.64 billion. The top 10 tenants represented 18.1% of net-lease annualized base rent, while tenants with investment-grade ratings or investment-grade parent companies accounted for 22.7%.
WPC Retains Ample Liquidity for Growth
WPC ended the quarter with liquidity of $2.74 billion, including $1.9 billion of available capacity under its senior unsecured credit facility. Cash and cash equivalents stood at $163.54 million.
Net debt to annualized adjusted EBITDA was 5.5X, or 5.1X, including unsettled forward equity. During the quarter, the company settled forward agreements for approximately $345 million in net proceeds and retained access to about $691 million from remaining unsettled agreements.
W. P. Carey Raises 2026 AFFO Guidance
Management raised its full-year 2026 AFFO guidance range to $5.19-$5.27 per share from $5.16-$5.26. The revised range implies 5.2% year-over-year growth at the midpoint. The Zacks Consensus Estimate is pegged at $5.28, which lies above the projected range.
WPC also increased its investment-volume assumption to $1.7-$2.1 billion from $1.5-$2.0 billion. The updated outlook reflects higher anticipated lease revenues, improved expectations for potential rent losses and lower projected expenses, partly offset by the impact of settling forward equity.
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
Performance of Other REITs
Digital Realty Trust (DLR - Free Report) reported second-quarter 2026 core FFO per share, excluding net promote, of $2.13, up 13.9% from a year ago. The figure surpassed the Zacks Consensus Estimate by 7.6%. Strong bookings, a record backlog and sharp renewal rent increases supported the quarter.
Prologis Inc. (PLD - Free Report) reported second-quarter 2026 core FFO per share of $1.63, outpacing the Zacks Consensus Estimate of $1.53. Results reflected strengthening demand, disciplined execution and expanding capabilities across logistics, data centers and energy.
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.