NYSE$WPC

WP Carey Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

W. P. Carey reported an increase in revenue and net income compared to the same quarter last year, while AFFO per share decreased slightly. The company is progressing with its strategic plan to exit office properties.

W. P. Carey's third quarter 2023 results showed an increase in net income and revenue compared to the third quarter of 2022. The company completed the NLOP spin-off and is making progress on the Office Sale Program. The company lowered and narrowed its 2023 AFFO guidance range, and announced preliminary 2024 AFFO guidance.

  • Net income attributable to W. P. Carey was $125.0 million, up 19.2% from Q3 2022.
  • Diluted earnings per share was $0.58.
  • AFFO was $284.4 million, or $1.32 per diluted share.
  • Completed NLOP spin-off on November 1, 2023.

Headline financials

Total Revenue

$449M

Previous: $384M+16.9%
EPS (adj)

$1.32

Previous: $1.36-2.9%
Net Lease Properties

1.5K

Previous: 1.4K+3.1%
Tenants

395

Previous: 391+1.0%
Square Feet Leased

179.0M

Previous: 175.0M+2.3%
Occupancy Rate

98.9%

Previous: 98.9%+0.0%
Weighted-Average Lease Term

11

Previous: 10.9+0.9%
Self-Storage Operating Properties

86

Previous: 84+2.4%
Hotel Operating Properties

10

No prior period
Student Housing Operating Properties

2

No prior period
Capital Expenditures

-$908M

Previous: -$1.01B+10.4%
Free Cash Flow

-$783M

Previous: -$909M+13.8%
Net Income

$125M

Previous: $105M+19.2%
Operating Income

$277M

Previous: $208M+32.8%
Gross Profit

$448M

Previous: $383M+17.0%
Cash & Equivalents

$136M

Previous: $186M-26.8%
Total Assets

$18.6B

Previous: $17.8B+4.8%

Revenue & EPS history

WP Carey · Revenue · Quarterly

$449M

Q3 2023+16.9%vs Q3 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

WP Carey · $421M total across 4 segments · Q3 2023

  • Lease revenues
    $369M+11.2%
  • Operating property revenues
    $49.2M+130.5%
  • Other lease-related income
    $2.31M-71.8%
  • Asset management revenue
    $194K-83.8%

Forward guidance

The company has lowered and narrowed its guidance range for total AFFO to between $5.17 and $5.23 per diluted share for 2023. For 2024, the company expects to report total AFFO of between $4.60 and $4.80 per diluted share.

Tailwinds

  • Completion of the Company’s strategic plan to exit office.
  • Anticipated asset sales under the Office Sale Program totaling approximately $500 million early in 2024.
  • Exercise of the U-Haul purchase option during the 2024 first quarter, generating approximately $470 million in gross proceeds.
  • Operating property dispositions of up to $100 million.
  • Other dispositions totaling between $100 million and $300 million.

Headwinds

  • Lowered and narrowed its guidance range for total AFFO to between $5.17 and $5.23 per diluted share, primarily reflecting execution of the Company’s strategic plan to exit office, including the completion of the Spin-Off.
  • Revised lower investment volume of between $1.3 billion and $1.5 billion.
  • Revised higher disposition volume of between $450 million and $550 million, which includes anticipated asset sales under the Office Sale Program totaling approximately $300 million.
  • Total general and administrative expenses of between $96 million and $98 million, which has been revised lower.
  • Preliminary 2024 AFFO guidance of between $4.60 and $4.80 per diluted share is based primarily on completion of the Company’s strategic plan to exit office.

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 Q3 2023

Historical avgQ3 2023

-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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