NYSE$WPC

WP Carey Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

W. P. Carey reported strong first-quarter results, driven by sustained investment activity and inflation-driven rent growth. The merger with CPA:18 remains on track, expected to close in the third quarter.

W. P. Carey Inc. announced its financial results for the first quarter ended March 31, 2022, reporting a net income attributable to W. P. Carey of $157.0 million and AFFO per diluted share of $1.35. The company completed investments totaling $307.7 million during the quarter and is maintaining its full-year AFFO guidance.

  • AFFO for the 2022 first quarter was $1.35 per diluted share, up 10.7% from $1.22 per diluted share for the 2021 first quarter.
  • Investment volume of $415.4 million completed year to date, including $307.7 million during the first quarter and $107.7 million subsequent to quarter end.
  • Overall collection rate of over 99.7% for first quarter rent due.
  • Portfolio occupancy of 98.5% with a weighted-average lease term of 10.8 years.

Headline financials

Total Revenue

$348M

Previous: $311M+12.0%
EPS (adj)

$1.35

Previous: $1.22+10.7%
Net Lease Properties

1.3K

Previous: 1.3K+5.9%
Square Feet Leased

157.0M

Previous: 146.0M+7.5%
Occupancy Rate

98.5%

Previous: 98.3%+0.2%
Weighted-Average Lease Term

10.8

Previous: 10.6+1.9%
Capital Expenditures

-$265M

Previous: -$151M-75.9%
Free Cash Flow

-$108M

Previous: -$99.3M-9.2%
Net Income

$157M

Previous: $51.6M+204.1%
Operating Income

$202M

Previous: $172M+17.6%
Gross Profit

$348M

Previous: $310M+12.1%
Cash & Equivalents

$205M

Previous: $229M-10.4%
Total Assets

$15.6B

Previous: $14.5B+7.0%

Revenue & EPS history

WP Carey · Revenue · Quarterly

$348M

Q1 2022+12%vs Q1 2021
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

WP Carey · $315M total across 3 segments · Q1 2022

  • Lease revenues
    $308M+2.0%
  • Operating property revenues
    $3.87M+77.4%
  • Asset management revenue
    $3.42M-13.5%

Forward guidance

W. P. Carey is maintaining its expectation that it will report total AFFO of between $5.18 and $5.30 per diluted share, including Real Estate AFFO of between $5.03 and $5.15 per diluted share.

Tailwinds

  • Investments for the Company's Real Estate portfolio of between $1.5 billion and $2.0 billion, which is unchanged
  • Dispositions from the Company's Real Estate portfolio of between $250 million and $350 million, which is unchanged
  • Total general and administrative expenses of between $86 million and $89 million, which is unchanged
  • Excludes the impact of the Company’s proposed merger with CPA:18
  • Company expects the proposed merger to close in early August 2022

Headwinds

  • The Company does not provide guidance on net income.
  • The Company only provides guidance on total AFFO (and Real Estate AFFO) and does not provide a reconciliation of this forward-looking non-GAAP guidance to net income due to the inherent difficulty in quantifying certain items necessary to provide such reconciliation as a result of their unknown effect, timing and potential significance.
  • Examples of such items include impairments of assets, gains and losses from sales of assets, and depreciation and amortization from new acquisitions.
  • The proposed merger and related transactions are subject to the satisfaction of a number of closing conditions set forth in the merger agreement, including approval by the stockholders of CPA:18.
  • There can be no assurance that the merger will be completed at such time or at all.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-0.2%

Avg return

Earnings day

-0.7%

Avg return

5 days after

-0.1%

Avg return

30 days after

47%

32 / 68 earnings

Positive

+10.4%

Q2 2011

Best reaction

-8.5%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.8%-0.3%+2.4%
Q4 2025-0.4%+2.2%-1.5%
Q3 2025+0.1%-0.3%+1.9%
Q1 2025+2.1%+0.6%+2.6%
Q4 2024+2.8%+4.5%+11.6%
Q3 2024-2.2%-4.1%+0.1%
Q2 2024-5.1%-6.0%-2.8%
Q1 2024-1.9%+1.8%+0.7%
Q4 2023-7.3%-9.0%-6.2%
Q3 2023-1.9%-1.0%+14.4%
Q2 2023-5.4%-6.6%-9.8%
Q1 2023+0.5%-2.5%-7.3%
Q4 2022+4.9%+3.2%-3.3%
Q3 2022+4.0%+4.5%+9.2%
Q2 2022+3.1%+0.1%+1.1%
Q1 2022-8.5%-7.1%-0.8%
Q4 2021+2.0%+3.1%+7.2%
Q3 2021-1.5%-1.4%-2.9%
Q2 2021-1.2%-1.2%-4.0%
Q1 2021+3.1%+1.1%+2.8%
Q4 2020+0.2%-0.6%+0.3%
Q3 2020+2.9%+5.7%+12.5%
Q2 2020-0.5%+0.3%+1.7%
Q1 2020-7.3%-10.2%-8.9%
Q4 2019+4.0%+2.1%-41.8%
Q3 2019-3.8%-6.4%-9.4%
Q2 2019-4.0%-1.0%+3.3%
Q1 2019-0.5%-2.1%+4.7%
Q4 2018-0.3%-1.2%+4.5%
Q3 2018-0.3%+0.3%+4.4%
Q2 2018+0.2%-0.1%+1.5%
Q1 2018+3.1%+3.8%+5.8%
Q4 2017+1.7%-0.1%+1.0%
Q3 2017+2.0%+4.0%+3.8%
Q2 2017-0.1%-1.8%+2.5%
Q1 2017-0.5%-0.1%+7.8%
Q4 2016+1.3%-0.7%-3.0%
Q3 2016-1.4%+0.3%-1.9%
Q2 2016-2.1%-2.2%-6.8%
Q1 2016+0.8%
Q4 2015+2.5%
Q3 2015-0.3%
Q2 2015-3.0%
Q1 2015-2.0%
Q4 2014-3.6%
Q3 2014-0.4%
Q2 2014+1.2%
Q1 2014-0.8%
Q4 2013+1.1%
Q3 2013-0.7%
Q2 2013-2.7%
Q1 2013+3.6%
Q4 2012+2.2%
Q3 2012-0.7%
Q2 2012-2.4%
Q4 2011-2.4%
Q1 2012+1.1%
Q4 2010-2.6%
Q3 2011-1.8%
Q2 2011+10.4%
Q1 2010+0.2%
Q1 2011+0.0%
Q4 2008+3.4%
Q3 2009+1.1%
Q3 2010+1.1%
Q4 2009+0.8%
Q2 2010+0.8%
Q2 2009+0.8%

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