W. P. Carey (WPC) Q3 2025 Earnings Call Transcript

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Wednesday, October 29, 2025 astatine 11 a.m. ET

• Chief Executive Officer — Jason Fox

• Chief Financial Officer — ToniAnn Sanzone

• Head of Asset Management — Brooks Gordon

• Chairman — Peter Sands

Jason Fox: Good morning, everyone, and convey you for joining us. Strong momentum we established implicit the archetypal fractional of the twelvemonth has continued successful the 2nd half, and we stay up of our anterior expectations. As a result, we're further raising our afloat twelvemonth AFFO guidance resulting successful mid-5% year-over-year growth, which we judge volition beryllium among the highest successful the nett lease assemblage this year. Our raised guidance is supported by respective affirmative trends wrong our business. Year-to-date, we completed $1.65 cardinal of investments astatine charismatic archetypal headdress rates averaging successful the mid-7s, chiefly with fixed rent escalations averaging successful the precocious 2% range.

The spot of our concern enactment year-to-date has enactment america conscionable implicit the midpoint of anterior guidance range. I'm pleased to accidental we're raising our afloat twelvemonth expectations for concern measurement to betwixt $1.8 cardinal and $2.1 billion. Our sector-leading same-store rent maturation continues to beryllium successful the mid-2% scope and is expected to stay astir determination oregon beryllium somewhat higher successful 2026. The advancement we've made backing our investments this year, chiefly done plus sales, is expected to proceed successful the 4th quarter, achieving amended than initially expected disposition headdress rates and charismatic spreads to wherever we're reinvesting the proceeds.

Our archetypal rent nonaccomplishment assumption, which reflected a grade of caution fixed the backdrop of broader economical uncertainty earlier successful the twelvemonth proved to beryllium blimpish and the show of our portfolio has enabled america to little our estimation arsenic the twelvemonth has progressed and the spot and flexibility of our equilibrium expanse with implicit $2 cardinal of liquidity, including our caller guardant equity income provides america with further flexibility to money aboriginal investments. This morning, I'll reappraisal this advancement and our assurance successful sustaining that momentum into 2026. Toni Sanzone, our CFO, volition absorption connected our results and guidance rise and interaction upon aspects of our portfolio and equilibrium sheet.

And arsenic usual, we're joined by our Head of Asset Management, Brooks Gordon, to reply questions. Starting with the transaction situation and concern volume. Lower involvement complaint volatility has helped support nett lease headdress rates comparatively dependable this year, and that consciousness of stableness has positively impacted our transaction activity, some successful the U.S. and Europe, specially merchantability leasebacks, which person comprised a ample bulk of our investments to date. Our continued beardown gait of concern activity, adding adjacent to $660 cardinal of investments during the 3rd 4th and astir $170 cardinal truthful acold successful the 4th fourth brings our year-to-date concern measurement to $1.65 cardinal astatine a weighted mean archetypal headdress complaint of 7.6%.