W.P. Carey's FFO and Revenues Miss Estimates in Q1

W.P. Carey WPC reported first-quarter 2025 adjusted funds from operations (AFFO) per share of $1.17, missing the Zacks Consensus Estimate of $1.19. However, the figure improved 2.6% from the year-ago quarter.

Results reflect dispositions impacting revenues, though net investment activity and certain lease structuring aided the performance to some extent.

Quarterly revenues of $407.4 million underperformed the Zacks Consensus Estimate of $418.2 million. However, revenues increased 5.3% year over year.

Per Jason Fox, CEO of WPC, “Notwithstanding the current uncertainty in the markets, we believe we’re well positioned to continue executing on our business plan given the typical resiliency of our portfolio during times of economic disruption, the strength of our balance sheet and, importantly, our ability to fund external growth through the top end of our investment guidance range, without having to issue capital this year.”

WPC’s Q1 in Detail

Income from finance leases and loans receivable decreased significantly year over year due to the disposition of the U-Haul portfolio in the first quarter of 2024.

Operating property revenues decreased 10.7% year over year due to the sale of one hotel operating property in the second quarter of 2024 and the conversion of certain self-storage operating properties to net leases in the third quarter of 2024.

Lease revenues increased 9.8% year over year to $353.8 million. The growth in lease revenues was aided by net investment activity and the impact of certain lease structuring.

The total investment value for the quarter stood at $275.1 million. In the first quarter of 2025, the company committed to fund new capital investments and commitments to the tune of $50.8 million, scheduled to be completed in 2025 and 2026. As of April 29, 2025, WPC had $117.1 million worth of eight capital investments and commitments to be completed in 2025.

In the first quarter, the company sold nine properties for gross sale proceeds of $129.8 million.

As of March 31, 2025, the contractual same-store rent grew 2.4% year over year on a constant-currency basis.

WPC’s Balance Sheet Position

As of March 31, 2025, the company had a total liquidity of $2 billion, including around $1.8 billion of available capacity under its senior unsecured credit facility and $187.8 million of cash and cash equivalents.

WPC’s 2025 Outlook

For 2025, W.P. Carey reaffirmed its AFFO guidance between $4.82 and $4.92 per share.

The REIT expects an investment volume between $1 and $1.5 billion and a disposition volume between $500 million and $1 billion for 2025.

WPC's 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 Cousins Properties CUZ and Vornado Realty Trust VNO,slated to report on May 1 and May 5, respectively. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

The Zacks Consensus Estimate for Cousins Properties’ first-quarter 2025 FFO per share stands at 71 cents, which indicates 9.2% growth year over year. CUZ currently has a Zacks Rank #2.

The Zacks Consensus Estimate for Vornado Realty Trust’s first-quarter 2025 FFO per share is pegged at 51 cents, which implies a 7.3% year-over-year decrease. VNO currently carries a Zacks Rank #2.

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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