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W. P. Carey Inc. (WPC)
NYSE:WPC
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W. P. Carey Inc.
(NYSE:WPC)
72Outperform
Positive Factors
Analyst Confidence
Analyst upgrades WPC to Outperform, indicating confidence in its performance and potential for growth.
Dividend Yield
WPC provides a well-covered 6.0% dividend yield, appealing to income-focused investors.
Management Transparency
Management’s commitment to transparency toward recent tenant credit issues, which have had a negligible impact on operating rents to date, has been welcomed by the investment community.
Negative Factors
Competition
Potential risks include unforeseen credit issues and increasing competition that could impact growth.
Credit Issues
Unforeseen credit issues could emerge given its sub-investment grade portfolio.
Economic Sensitivity
WPC's portfolio has increased sensitivity to downward economic swings.
W. P. Carey Inc. (WPC) vs. S&P 500 (SPY)
Market Cap
$12.95B
Dividend Yield5.94%
Average Volume (3M)1.52M
Price to Earnings (P/E)28.3
Beta (1Y)0.61
Revenue Growth-9.09%
EPS Growth-36.58%
CountryUS
Employees203
SectorReal Estate
Sector Strength79
IndustryREIT - Diversified
Share Statistics
EPS (TTM)2.09
Shares Outstanding218,975,750
10 Day Avg. Volume1,271,222
30 Day Avg. Volume1,520,228
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)8.50
Price to Cash Flow (P/CF)11.40
P/FCF Ratio7.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$63.71Price Target Upside7.71% Upside
Rating ConsensusHold
Number of Analyst Covering8
W. P. Carey Inc. Business Overview & Revenue Model
Company DescriptionW. P. Carey ranks among the largest net lease REITs with an enterprise value of approximately $18 billion and a diversified portfolio of operationally-critical commercial real estate that includes 1,215 net lease properties covering approximately 142 million square feet as of September 30, 2020. For nearly five decades, the company has invested in high-quality single-tenant industrial, warehouse, office, retail and self-storage properties subject to long-term net leases with built-in rent escalators. Its portfolio is located primarily in the U.S. and Northern and Western Europe and is well-diversified by tenant, property type, geographic location and tenant industry.
How the Company Makes MoneyW. P. Carey Inc. generates revenue primarily through the acquisition and leasing of real estate properties. As a REIT, the company earns income from rental payments made by tenants occupying its properties under long-term net lease agreements. These leases typically require tenants to cover property-related expenses such as taxes, insurance, and maintenance, thereby securing a predictable income stream for W. P. Carey. Additionally, the firm benefits from property appreciation and strategic dispositions, further enhancing profitability. W. P. Carey also leverages strategic partnerships and capital markets to finance acquisitions and growth, contributing to its earnings and shareholder value.
W. P. Carey Inc. Financial Statement Overview
Summary
W. P. Carey Inc. shows strong financial health with robust revenue and profit growth, efficient cost management, and a stable capital structure. The company's balance sheet and cash flow are solid, though there are some limitations in the latest data.Income Statement
W. P. Carey Inc. has shown robust revenue growth with an increase from $1.21 billion in 2020 to $1.74 billion in 2023, indicating a strong upward trajectory. The net profit margin has improved significantly, reflecting efficient cost management. However, the gross profit margin is unavailable for the latest year, limiting the full assessment of profitability. EBIT and EBITDA margins have remained strong, contributing to a solid financial performance.68
Positive
Balance Sheet
The company maintains a strong equity base with a debt-to-equity ratio that has improved over recent years, indicating prudent financial management. Return on equity has been consistently healthy, enhancing shareholder value. The equity ratio suggests a stable financial structure, though total assets have seen a slight decrease, which should be monitored.75
Positive
Cash Flow
W. P. Carey Inc. has shown consistent free cash flow generation, with growth in operating cash flow over the years. The operating cash flow to net income ratio indicates strong cash conversion, while the free cash flow to net income ratio suggests robust financial health. Lack of data for the latest period limits full assessment, but historical performance has been solid.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.58B | 1.74B | 1.48B | 1.33B | 1.21B | Gross Profit |
| 1.41B | 945.25M | 1.33B | 1.21B | 1.09B | EBIT |
| 52.24M | 814.72M | 855.80M | 614.71M | 581.99M | EBITDA |
| 1.30B | 1.67B | 1.36B | 1.09B | 1.02B | Net Income Common Stockholders |
| 460.84M | 708.33M | 599.14M | 409.99M | 455.36M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 640.37M | 633.86M | 168.00M | 165.43M | 248.66M | Total Assets |
| 17.54B | 17.98B | 18.10B | 15.48B | 14.71B | Total Debt |
| 8.04B | 8.14B | 7.88B | 6.79B | 6.70B | Net Debt |
| 7.40B | 7.51B | 7.71B | 6.63B | 6.45B | Total Liabilities |
| 9.10B | 9.27B | 9.09B | 7.90B | 7.83B | Stockholders Equity |
| 8.43B | 8.70B | 8.99B | 7.58B | 6.88B |
| Cash Flow | Free Cash Flow | |||
| 1.83B | 1.07B | 899.12M | 812.86M | 594.28M | Operating Cash Flow |
| 1.83B | 1.07B | 1.00B | 926.48M | 801.54M | Investing Cash Flow |
| -1.13B | -905.88M | -1.05B | -1.57B | -539.93M | Financing Cash Flow |
| -688.47M | 292.56M | 57.89M | 557.05M | -210.71M |
W. P. Carey Inc. Technical Analysis
Negative
59.15
Price Trends
59.88
Negative
57.00
Negative
56.69
Positive
Market Momentum
0.53
Positive
63.48
Neutral
48.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WPC, the sentiment is Negative. The current price of 59.15 is below the 20-day moving average (MA) of 61.18, below the 50-day MA of 59.88, and above the 200-day MA of 56.69, indicating a neutral trend. The MACD of 0.53 indicates Positive momentum. The RSI at 63.48 is Neutral, neither overbought nor oversold. The STOCH value of 48.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WPC.
W. P. Carey Inc. Risk Analysis
W. P. Carey Inc. disclosed 42 risk factors in its most recent earnings report. W. P. Carey Inc. reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
W. P. Carey Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $32.32B | 11.96 | 10.34% | 5.60% | 6.57% | 3.45% | |
78 Outperform | $6.04B | 26.78 | 6.21% | 3.81% | 24.84% | -6.90% | |
74 Outperform | $3.06B | 18.84 | 5.37% | 7.17% | -2.08% | 3.63% | |
72 Outperform | $12.95B | 28.30 | 5.38% | 5.94% | -9.09% | -36.58% | |
70 Outperform | $538.60M | 17.76 | 9.80% | 7.21% | -0.09% | 1.93% | |
61 Neutral | $4.43B | 16.13 | -3.23% | 11.37% | 6.25% | -21.19% | |
60 Neutral | $1.74B | ― | -5.48% | 14.63% | 56.29% | 55.99% |
* Real Estate Sector Average
Performance Comparison
WPC
W. P. Carey Inc.
56.96
4.24
8.04%
OLP
One Liberty Properties
23.78
2.39
11.17%
GNL
Global Net Lease
7.15
0.65
10.00%
VICI
VICI Properties
29.76
1.72
6.13%
EPRT
Essential Properties Realty
30.72
5.63
22.44%
BNL
Broadstone Net Lease
15.30
1.13
7.97%
W. P. Carey Inc. Earnings Call Summary
Earnings Call Date: Feb 11, 2025 | % Change Since: 6.88% | Next Earnings Date: Apr 25, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. On one hand, W. P. Carey reported record investment volume, a strong liquidity position, and improved tenant credit situations. On the other hand, there were concerns about economic uncertainties and conservative guidance due to market conditions. The sentiment is balanced with significant achievements but also notable challenges.Highlights
Record Quarterly Investment Volume
W. P. Carey closed a record quarterly investment volume of over $840 million in Q4 2024, bringing the total annual investment volume to approximately $1.6 billion.
Successful Exit from Office Sector
Successfully exited the office sector, establishing a new baseline for AFFO and setting the foundation for future growth.
Strong Balance Sheet and Liquidity
Ended 2024 with total liquidity of approximately $2.6 billion, with significant flexibility and manageable debt maturity profile.
Improved Tenant Credit Position
Resolved credit risk with True Value and saw no change in credit risk for other significant tenants like HELDIG and Hearthside.
AFFO Growth and Guidance
Reported a strong AFFO of $4.70 per share for 2024, with guidance for 2025 AFFO of between $4.82 and $4.92 per share, implying about 3.6% growth at the midpoint.
Lowlights
Economic Uncertainty and Conservative Guidance
Conservative initial guidance on investment volume and tenant credit due to uncertainties around interest rates, inflation, and economic conditions.
Challenges in Specific Tenant Situations
Continued monitoring of tenants like HELDIG and Hearthside due to operational headwinds and bankruptcy proceedings.
Potential Transaction Volume Slowdown
Acknowledgment of potential transaction volume slowdown due to rising ten-year treasury rates and economic uncertainties.
Company Guidance
In the 2024 earnings call, W. P. Carey provided comprehensive guidance for the upcoming year, highlighting several key metrics. The company anticipates a mid-three percent range growth in AFFO, which is expected to support a total return of around ten percent, bolstered by a dividend yield of over six percent. The fourth quarter saw a record investment volume of over $840 million, bringing the total for the year to $1.6 billion, with average cash cap rates in the mid to low sevens. The company plans to fund new investments without issuing equity, instead utilizing accretive asset sales. For 2025, AFFO guidance is set between $4.82 and $4.92 per share, implying approximately 3.6% growth at the midpoint. Key assumptions include investment volume between $1 billion and $1.5 billion, with expected dispositions totaling $500 million to $1 billion. Additionally, the company plans to maintain a leverage target with debt to gross assets in the mid to low forties.W. P. Carey Inc. Corporate Events
DividendsBusiness Operations and StrategyFinancial Disclosures
W. P. Carey Reports 2024 Financial Results and Strategy
Neutral
Feb 11, 2025
On February 11, 2025, W. P. Carey Inc. released its financial results for the fourth quarter and full year of 2024, highlighting a pivotal year marked by a strategic exit from the office sector. The company’s net income for the fourth quarter was $47.0 million, a significant decrease from the previous year, while AFFO per diluted share slightly increased. The total investment volume for 2024 reached $1.6 billion with record investment activity in the fourth quarter. Despite revenue declines, W. P. Carey achieved a $1.21 AFFO per share in Q4, reflecting rent escalations and net investment activity. The company announced a cash dividend of $0.880 per share for the fourth quarter and provided a 2025 AFFO guidance range, suggesting a cautious approach amid economic uncertainties.
Private Placements and FinancingBusiness Operations and Strategy
W. P. Carey Inc. Announces $1.6 Billion Investment Plan
Positive
Jan 8, 2025
W. P. Carey Inc. announced a total investment volume of $1.6 billion for 2024, with a record fourth-quarter investment volume of $845 million. The company focused on acquiring high-quality warehouse and industrial properties, with a significant portion of investments located in North America. The fourth quarter saw major investments in discount retail stores, an industrial facility for Canadian Solar, a manufacturing campus in Mexico, and a data center in New Jersey. This strategic acquisition approach positions the company to benefit from rent escalations and strengthens its financial base for future growth, without needing to issue equity.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.