NYSE$WPC

WP Carey Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

W. P. Carey reported mixed results for Q4 2019, with a decrease in net income but growth in real estate revenue, and provided AFFO guidance for 2020.

W. P. Carey Inc. reported a decrease in net income attributable to W. P. Carey for the fourth quarter of 2019, from $193.3 million to $129.4 million. However, real estate revenues increased by 19.4%. The company announced a full year AFFO guidance range for 2020 of $4.86 to $5.01 per diluted share.

  • Net income attributable to W. P. Carey was $129.4 million, or $0.75 per diluted share.
  • AFFO was $222.0 million, or $1.28 per diluted share.
  • Quarterly cash dividend raised to $1.038 per share, equivalent to an annualized dividend rate of $4.152 per share.
  • Investment volume of $411.7 million during the fourth quarter.

Headline financials

Total Revenue

$296M

Previous: $248M+19.4%
EPS (adj)

$1.28

Previous: $1.33-3.8%
Net Lease Properties

1.2K

No prior period
Tenants

345

No prior period
Square Feet Leased

140.0M

No prior period
Occupancy Rate

98.8%

No prior period
Weighted-Average Lease Term

10.7

No prior period
Self-Storage Operating Properties

19

No prior period
Hotel Operating Properties

2

No prior period
Net Income

$129M

Previous: $193M-33.0%
Operating Income

$135M

No prior period

Revenue & EPS history

WP Carey · Revenue · Quarterly

$296M

Q4 2019+19.4%vs Q4 2018
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

WP Carey · $306M total across 4 segments · Q4 2019

  • Lease revenues
    $275M
  • Other lease-related income
    $12.3M
  • Asset management revenue
    $9.73M
  • Operating property revenues
    $9.25M

Forward guidance

For the 2020 full year, the Company expects to report total AFFO of between $4.86 and $5.01 per diluted share, including Real Estate AFFO of between $4.74 and $4.89 per diluted share.

Tailwinds

  • Investments for the Company’s Real Estate portfolio of between $750 million and $1.25 billion
  • Ample liquidity
  • Low leverage
  • Established access to various forms of capital
  • Healthy number of capital projects scheduled for completion this year

Headwinds

  • The company does not provide guidance on net income
  • Inherent difficulty in quantifying certain items necessary to provide reconciliation to net income
  • Unknown effect on impairments of assets
  • Unknown timing and potential significance
  • Impact of gains and losses from sales of assets and depreciation and amortization from new acquisitions

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 Q4 2019

Historical avgQ4 2019

-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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