W. P. Carey (WPC) Q3 2024 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Wed, February 11, 2026 astatine 10:24 AM CST 54 min read

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Wednesday, October 30, 2024 astatine 11 a.m. ET

• Chief Executive Officer — Jason Fox

• Chief Financial Officer — Toni Sanzone

• Head of Asset Management — Brooks Gordon

• Chairman — Peter Sands

Jason Fox: Thank you, Peter, and bully morning, everyone. This morning, I'll concisely screen respective topics, starting with the transaction environment, the concern measurement we've completed to date, and the spot of our woody pipeline. I'll besides screen tenant credit, including an update connected immoderate of our apical tenants. I'm joined by Toni Sanzone, our CFO, who volition screen the details of our 3rd 4th results, guidance, and equilibrium sheet; arsenic good arsenic Brooks Gordon, our Head of Asset Management, who volition instrumentality questions. Starting with the transaction environment.

Since the extremity of summer, we've seen a coagulated summation successful wide transaction enactment and person been getting greater traction connected deals, keeping america precise overmuch connected way to execute the midpoint of our full-year concern measurement guidance. During the 3rd quarter, we completed $167 cardinal of caller investments, reflecting the slowdown successful enactment we often spot successful precocious summer. Since then, however, we've closed an further $231 cardinal of investments, which brings our year-to-date woody measurement to astir $1 billion. While the transaction marketplace does look to person opened up more, we've besides seen an incremental summation successful contention on with lingering expectations from sellers that rates volition determination little than wherever they've been for astir of 2024.

So we're besides seeing immoderate signs of unit connected headdress rates, notwithstanding the precise caller upward question successful involvement rates. We proceed to spot deals averaging successful the mid 7s compared to earlier successful the twelvemonth erstwhile we were mostly seeing deals averaging successful the precocious 7s. Year-to-date, our closed investments bespeak a 7.6% weighted mean going-in headdress complaint and an mean output supra 9% erstwhile factoring successful our rent bumps, though we proceed to measure deals crossed a scope of headdress rates fixed our diversified approach. I'm pleased to accidental our pipeline is presently precise progressive with identified deals totaling implicit $500 million.

Compared to the 2 anterior quarters, we're executing oregon evaluating much deals successful some North America and Europe, though the ample bulk of our identified pipeline is presently successful North America. Given the visibility we person today, we're assured that we're connected way to execute the $1.5 cardinal midpoint of our full-year concern measurement guidance. And depending connected the eventual timing of woody closings, we spot a way to being successful the apical fractional of our $1.25 cardinal to $1.75 cardinal range. We're encouraged by the existent spot of our pipeline and careless of which broadside of twelvemonth extremity the deals yet close, they'll positively lend to our AFFO maturation successful 2025.