W.P. Carey's Q4 FFO & Revenues Surpass Estimates, Improve Y/Y

W.P. Carey WPC reported fourth-quarter 2025 adjusted funds from operations (AFFO) per share of $1.27, surpassing the Zacks Consensus Estimate of $1.26. The figure improved 5% from the year-ago quarter.

Results reflected higher revenues, aided by strong investment activity and improved rents.

Quarterly revenues of $444.5 million outpaced the Zacks Consensus Estimate of $428.8 million. Revenues increased 9.4% year over year.

For 2025, WPC reported an AFFO per share of $4.97, which outpaced the Zacks Consensus Estimate of $4.94. The figure compared favorably with the prior year’s $4.70. Full-year revenues totaled $1.71 billion, which beat the consensus estimate and increased 8.6% year over year.

WPC’s Q4 in Detail

In the fourth quarter, lease revenues increased 10.7% year over year to $389.2 million. The growth in lease revenues was aided by net investment activity and rent escalations.

Income from finance leases and loans receivable increased significantly year over year, mainly due to the net investment activity.

Operating property revenues decreased significantly year over year due to the sale of 63 self-storage operating properties and a student housing operating property, and the conversion of four self-storage operating properties to net leases in 2025.

The total investment value for the quarter stood at $625.1 million. As of Dec. 31, 2025, the company had 13 capital investments and commitments to the tune of $238.3 million, scheduled to be completed in 2026 and two capital investments and commitments totaling $101.5 million to be completed in 2027.

In the fourth quarter, the company sold 44 properties for gross sale proceeds of $507 million.

As of Sept. 30, 2025, the contractual same-store rent grew 2.4% year over year on a constant-currency basis.

WPC’s Balance Sheet Position

As of Dec. 31, 2025, the company had total liquidity of $2.2 billion, including around $1.6 billion of available capacity under its senior unsecured credit facility, $155.3 million of cash and cash equivalents and $80.9 million of cash held at qualified intermediaries.

WPC’s 2026 Outlook

For 2026, W.P. Carey expects its AFFO to be between $5.13 and $5.23 per share. The Zacks Consensus Estimate is pinned at $5.12 per share.

The REIT expects investment volume of $1.25-$1.75 billion and disposition volume of $250-$750 million for 2026.

WPC's Zacks Rank

WPC currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

W.P. Carey Inc. Price, Consensus and EPS Surprise

W.P. Carey Inc. price-consensus-eps-surprise-chart | W.P. Carey Inc. Quote

Upcoming Earnings Releases

We now look forward to the earnings releases of other REITs like Federal Realty Investment Trust FRT and Host Hotels & Resorts HST, slated to report on Feb. 12 and Feb. 18, respectively.

The Zacks Consensus Estimate for Federal Realty’s fourth-quarter 2025 FFO per share stands at $1.86, which indicates 7.5% growth year over year. FRT currently has a Zacks Rank #3 (Hold).

The consensus estimate for Host Hotels’ fourth-quarter 2025 FFO per share is pegged at 47 cents, which implies a 6.8% year-over-year increase. HST currently carries a Zacks Rank #3.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

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This article originally published on Zacks Investment Research (zacks.com).

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