NYSE$WPC

WP Carey Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

W. P. Carey Inc. reported financial results for the fourth quarter ended December 31, 2020.

W. P. Carey Inc. announced fourth quarter and full year 2020 financial results, with a net income attributable to W. P. Carey of $134.6 million, or $0.76 per diluted share, and AFFO of $1.20 per diluted share. The company's real estate portfolio maintained a 98.5% occupancy rate and a 99% rent collection rate for the fourth quarter.

  • Overall collection rate of 99% for 2020 fourth quarter rent due and 98% for January 2021 rent due.
  • Investment volume of $310.0 million during the fourth quarter, bringing total investment volume for 2020 to $825.9 million.
  • Gross disposition proceeds of $201.5 million during the fourth quarter, bringing total dispositions for 2020 to $381.2 million.
  • Portfolio occupancy of 98.5%.

Headline financials

Total Revenue

$302M

Previous: $296M+2.0%
EPS (adj)

$1.20

Previous: $1.28-6.3%
Net Lease Properties

1.2K

Previous: 1.2K+2.4%
Tenants

350

Previous: 345+1.4%
Square Feet Leased

144.0M

Previous: 140.0M+2.9%
Occupancy Rate

98.5%

Previous: 98.8%-0.3%
Weighted-Average Lease Term

10.6

Previous: 10.7-0.9%
Net Income

$135M

Previous: $129M+4.0%
Operating Income

$129M

Previous: $135M-4.5%

Revenue & EPS history

WP Carey · Revenue · Quarterly

$302M

Q4 2020+2%vs Q4 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

WP Carey · $304M total across 3 segments · Q4 2020

  • Lease revenues
    $298M+8.5%
  • Asset management revenue
    $3.86M-60.3%
  • Operating property revenues
    $2.03M-78.0%

Forward guidance

For the 2021 full year, the Company expects to report total AFFO of between $4.79 and $4.93 per diluted share, including Real Estate AFFO of between $4.66 and $4.80 per diluted share, based on the following key assumptions: (i) investments for the Company's Real Estate portfolio of between $1.0 billion and $1.5 billion; (ii) dispositions from the Company's Real Estate portfolio of between $250 million and $350 million; and (iii) total general and administrative expenses of between $79 million and $83 million.

Tailwinds

  • Expected total AFFO of between $4.79 and $4.93 per diluted share.
  • Real Estate AFFO of between $4.66 and $4.80 per diluted share.
  • Investments for the Company's Real Estate portfolio of between $1.0 billion and $1.5 billion.
  • Active capital investment projects of $189.7 million outstanding at year end, including $102.1 million scheduled to be completed in the remainder of 2021
  • Issued $500 million of 2.400% Senior Unsecured Notes due 2031

Headwinds

  • Total general and administrative expenses of between $79 million and $83 million.
  • Lower operating revenues reflected the disposition of a hotel operating property during the 2020 first quarter and lower occupancy at the Company’s remaining hotel operating property due to the COVID-19 pandemic.
  • Lower asset management revenues and reimbursable costs resulting from the management internalization by Carey Watermark Investors Incorporated (CWI 1) and Carey Watermark Investors 2 Incorporated (CWI 2) completed during the 2020 second quarter.
  • AFFO for the 2020 fourth quarter was $1.20 per diluted share, down 6.3% from $1.28 per diluted share for the 2019 fourth quarter.
  • The Investment Management segment generated AFFO of $0.04 per diluted share, reflecting the Company’s continued move out of this business, primarily through the management internalization completed by CWI 1 and CWI 2 during the 2020 second quarter.

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 2020

Historical avgQ4 2020

-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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro