W. P. Carey Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>W. P. Carey Inc. has submitted its Q1 2024 10-Q filing, detailing financial performance and position.</b>

AI Summary

W. P. Carey Inc. (WPC) filed a Quarterly Report (10-Q) with the SEC on May 1, 2024. W. P. Carey Inc. filed its quarterly report (10-Q) for the period ending March 31, 2024. The filing covers the first quarter of the fiscal year 2024. The company's standard industrial classification is Real Estate Investment Trusts. The filing includes financial data for the periods ending March 31, 2024, December 31, 2023, and December 31, 2022. Key financial statement components such as Common Stock, Additional Paid In Capital, and Accumulated Other Comprehensive Income are detailed for these periods.

Why It Matters

For investors and stakeholders tracking W. P. Carey Inc., this filing contains several important signals. This 10-Q filing provides investors with the latest financial performance data for W. P. Carey Inc., crucial for understanding the company's operational and financial health in the first quarter of 2024. The detailed breakdown of financial statement components allows for trend analysis and comparison against previous periods, aiding in investment decisions.

Risk Assessment

Risk Level: low — W. P. Carey Inc. shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain any immediately apparent unusual or high-risk disclosures.

Analyst Insight

Review the detailed financial statements and segment information within the 10-Q to assess W. P. Carey Inc.'s performance trends and identify any significant changes from prior periods.

Key Numbers

• 2024-03-31 — Reporting Period End Date (Conformed period of report)
• 2024-05-01 — Filing Date (Filed as of date)
• 6798 — SIC Code (Standard Industrial Classification)
• 133912578 — IRS Number (IRS Number)
• 001-13779 — SEC File Number (SEC File Number)

Key Players & Entities

• W. P. Carey Inc. (company) — Filer name
• 2024-03-31 (date) — Conformed period of report
• 2024-05-01 (date) — Filed as of date
• 10-Q (document) — Form type
• Real Estate Investment Trusts (industry) — Standard Industrial Classification
• 2124921100 (phone) — Business phone
• 2023-12-31 (date) — Financial reporting period
• 2022-12-31 (date) — Financial reporting period

FAQ

Industry Context

W. P. Carey Inc. operates within the Real Estate Investment Trusts (REITs) sector, focusing on net lease investments.

Regulatory Implications

As a publicly traded company, W. P. Carey Inc. is subject to SEC regulations and reporting requirements, including the filing of quarterly 10-Q reports.

What Investors Should Do

1. Analyze the balance sheet and income statement for Q1 2024.
2. Compare key financial metrics against Q1 2023 and FY 2023.
3. Review any disclosures related to segment performance, particularly Owned Real Estate and Investment Management.

Key Dates

• 2024-03-31: Quarterly Report End Date — Marks the end of the reporting period for the 10-Q filing.
• 2024-05-01: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Year-Over-Year Comparison

This filing represents the standard quarterly update for W. P. Carey Inc., providing financial data for the period ending March 31, 2024, following previous filings.

Key Financial Figures

• $0.001 — ange on which registered Common Stock, $0.001 Par Value WPC New York Stock Exchange

Filing Documents

• wpc-20240331.htm (10-Q) — 1862KB
• wpc2024q110-qexh311.htm (EX-31.1) — 9KB
• wpc2024q110-qexh312.htm (EX-31.2) — 9KB
• wpc2024q110-qexh32.htm (EX-32) — 5KB
• wpc-20240331_g1.jpg (GRAPHIC) — 103KB
• wpc-20240331_g2.jpg (GRAPHIC) — 50KB
• wpc-20240331_g3.jpg (GRAPHIC) — 47KB
• 0001025378-24-000081.txt (&nbsp;) — 10792KB
• wpc-20240331.xsd (EX-101.SCH) — 82KB
• wpc-20240331_cal.xml (EX-101.CAL) — 103KB
• wpc-20240331_def.xml (EX-101.DEF) — 557KB
• wpc-20240331_lab.xml (EX-101.LAB) — 823KB
• wpc-20240331_pre.xml (EX-101.PRE) — 713KB
• wpc-20240331_htm.xml (XML) — 1541KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) Consolidated Balance Sheets as of March 31, 2024 and December 31, 202 3 3 Consolidated Statements of Income for the Three Months Ended March 31 , 202 4 and 20 23 4 Consolidated Statements of Comprehensive Income for the Three Months Ended March 3 1 , 202 4 and 202 3 5 Consolidated Statements of Equity for the Three Months Ended March 31, 2024 and 202 3 6 Consolidated Statements of Cash Flows for the T hree Months Ended March 31, 2024 and 20 2 3 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 8

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 32

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 49

Controls and Procedures

Item 4. Controls and Procedures 51

— OTHER INFORMATION

PART II — OTHER INFORMATION

Exhibits

Item 6. Exhibits 52

Signatures

Signatures 53 W. P. Carey 3/31/2024 10-Q – 1

Forward-Looking Statements

Forward-Looking Statements This Quarterly Report on Form 10-Q (this "Report"), including Management's Discussion and Analysis of Financial Condition and Results of Operations in Item 2 of Part I of this Report, contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions. These forward-looking statements include, but are not limited to, statements regarding: the NLOP Spin-Off (as defined herein); our expectations surrounding the impact of the broader macroeconomic environment and the ability of tenants to pay rent; our financial condition, liquidity, results of operations, and prospects; our future capital expenditure and leverage levels, debt service obligations, and plans to fund our liquidity needs; prospective statements regarding our access to the capital markets, including our "at-the-market" program ("ATM Program"); statements that we make regarding our ability to remain qualified for taxation as a real estate investment trust ("REIT"); and the impact of recently issued accounting pronouncements and other regulatory activity. These statements are based on the current expectations of our management. It is important to note that our actual results could be materially different from those projected in such forward-looking statements. There are a number of risks and uncertainties that could cause actual results to differ materially from these forward-looking statements. Other unknown or unpredictable risks or uncertainties, like the risks related to fluctuating interest rates, the impact of inflation on our tenants and us, the effects of pandemics and global outbreaks of contagious diseases, and domestic or geopolitical crises, such as terrorism, military conflict, war or

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. W. P. CAREY INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands, except share and per share amounts) March 31, 2024 December 31, 2023 Assets Investments in real estate: Land, buildings and improvements — net lease and other $ 12,260,873 $ 12,095,458 Land, buildings and improvements — operating properties 1,256,171 1,256,249 Net investments in finance leases and loans receivable 660,585 1,514,923 In-place lease intangible assets and other 2,278,593 2,308,853 Above-market rent intangible assets 693,294 706,773 Investments in real estate 17,149,516 17,882,256 Accumulated depreciation and amortization ( 3,067,292 ) ( 3,005,479 ) Assets held for sale, net — 37,122 Net investments in real estate 14,082,224 14,913,899 Equity method investments 355,668 354,261 Cash and cash equivalents 776,966 633,860 Other assets, net 1,422,597 1,096,474 Goodwill 974,052 978,289 Total assets (a) $ 17,611,507 $ 17,976,783 Liabilities and Equity Debt: Senior unsecured notes, net $ 5,969,622 $ 6,035,686 Unsecured term loans, net 1,107,164 1,125,564 Unsecured revolving credit facility 291,621 403,785 Non-recourse mortgages, net 504,808 579,147 Debt, net 7,873,215 8,144,182 Accounts payable, accrued expenses and other liabilities 575,832 615,750 Below-market rent intangible liabilities, net 131,517 136,872 Deferred income taxes 158,820 180,650 Dividends payable 192,948 192,332 Total liabilities (a) 8,932,332 9,269,786 Commitments and contingencies ( Note 11 ) Preferred stock, $ 0.001 par value, 50,000,000 shares authorized; none issued — — Common stock, $ 0.001 par value, 450,000,000 shares authorized; 218,823,907 and 218,671,874 shares, respectively, issued and outstanding 219 219 Additional paid-in capital 11,772,948 11,784,461 Distributions in excess of accumulated earnings ( 2,926,085 ) ( 2,891,424 ) Deferred compensation obligation 78,491 62,046 Accumulated other comprehensive loss ( 252,516 ) ( 254,867 ) T

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Note 1. Business and Organization W. P. Carey Inc. ("W. P. Carey") is a REIT that, together with our consolidated subsidiaries, invests primarily in operationally-critical, single-tenant commercial real estate properties located in the United States and Northern and Western Europe that are leased on a long-term basis. We earn revenue principally by leasing the properties we own to companies on a triple-net lease basis, which generally requires each tenant to pay the costs associated with operating and maintaining the property. Founded in 1973, our shares of common stock are listed on the New York Stock Exchange under the symbol "WPC." We elected to be taxed as a REIT under Section 856 through 860 of the Internal Revenue Code effective as of February 15, 2012. As a REIT, we are not subject to federal income taxes on income and gains that we distribute to our stockholders as long as we satisfy certain requirements, principally relating to the nature of our income and the level of our distributions, as well as other factors. We also own real property in jurisdictions outside the United States through foreign subsidiaries and are subject to income taxes on our pre-tax income earned from properties in such countries. In September 2023, we announced a plan to exit the office assets within our portfolio by (i) spinning off 59 office properties into Net Lease Office Properties ("NLOP"), so that it became a separate publicly-traded real estate investment trust (the "Spin-Off"), and (ii) implementing an asset sale program to dispose of 87 office properties retained by us (the "Office Sale Program"), which is targeted to be substantially completed in the first half of 2024. On November 1, 2023, we completed the Spin-Off, contributing 59 office properties to NLOP. Following the closing of the Spin-Off, NLOP operates as a separate publicly-traded REIT, which we externally manage pursuant to certain advisory agree

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) Note 2. Basis of Presentation Basis of Presentation Our interim consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not necessarily include all information and footnotes necessary for a complete statement of our consolidated financial position, results of operations, and cash flows in accordance with generally accepted accounting principles in the United States ("GAAP"). In the opinion of management, the unaudited financial information for the interim periods presented in this Report reflects all normal and recurring adjustments necessary for a fair presentation of financial position, results of operations, and cash flows. Our interim consolidated financial statements should be read in conjunction with our audited consolidated financial statements and accompanying notes for the year ended December 31, 2023, which are included in the 2023 Annual Report, as certain disclosures that would substantially duplicate those contained in the audited consolidated financial statements have not been included in this Report. Operating results for interim periods are not necessarily indicative of operating results for an entire year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in our consolidated financial statements and the accompanying notes. Actual results could differ from those estimates. Basis of Consolidation Our consolidated financial statements reflect all of our accounts, including those of our controlled subsidiaries. The portions of equity in consolidated subsidiaries that are not attributable, directly or indirectly, to us are presented as noncontrolling interests. All significant intercompany accounts and transactions have been eliminated. When we obtain an economic interest in an entit

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) At March 31, 2024 and December 31, 2023, our five and six unconsolidated VIEs, respectively, included our interests in (i) three unconsolidated real estate investments, which we account for under the equity method of accounting (we do not consolidate these entities because we are not the primary beneficiary and the nature of our involvement in the activities of these entities allows us to exercise significant influence on, but does not give us power over, decisions that significantly affect the economic performance of these entities), and (ii) two unconsolidated investments in equity securities, which we accounted for as investments in shares of the entities at fair value. In addition, at December 31, 2023, we had a variable interest in NLOP, which we also deemed a VIE, due to our guarantee of a non-recourse mortgage loan with approximately $ 19.0 million principal balance outstanding as of December 31, 2023 encumbering a property that was derecognized in the Spin-Off ( Note 1 ). This non-recourse mortgage loan was repaid by NLOP during the first quarter of 2024 and as a result, NLOP is not deemed a VIE as of March 31, 2024. As of March 31, 2024, and December 31, 2023, the net carrying amount of our investments in these entities was $ 732.0 million and $ 729.8 million, respectively, and our maximum exposure to loss in these entities was limited to our investments. Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. Reimbursable costs from affiliates (revenues) are now included within Other advisory income and reimbursements. Reimbursable affiliate costs (expenses) are now included within General and administrative expenses. Previously, such amounts were presented in their own financial statement line items on the consolidated statements of income. Revenue Recognition There have been no significant changes in our policies for revenue fro

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) The following tables present a summary of revenue earned and reimbursable costs received/accrued from NLOP and CESH for the periods indicated, included in the consolidated financial statements (in thousands): Three Months Ended March 31, 2024 2023 Asset m