W. P. Carey Inc. Reit · NYSE:WPC
W. P. Carey Inc. Reit — Q4 2023 Earnings Presentation
25 slides from W. P. Carey Inc. Reit's earnings presentation, Feb 9, 2024
Slide 1: W. P. Carey Inc. Investor Presentation 4Q23
W. P. Carey Inc. Investor Presentation 4Q23 50+ Years of Investing for the Long Run®
Slide 2: Table of Contents
Table of Contents Overview 3 Real Estate Portfolio 7 Balance Sheet 18 ESG 22 Unless otherwise noted, all data in this presentation is as of December 31, 2023. Amounts may not sum to totals due to rounding.
Slide 3: Overview
WoPCAREY Overview
Slide 4: Company Highlights
Company Highlights W. P. Carey (NYSE: WPC) is a REIT that specializes in investing in single-tenant net lease commercial real estate, primarily in the U.S. and Northern and Western Europe Size One of the largest owners of net lease real estate and among the top 25 REITs in the MSCI US REIT Index Div
Slide 5: Investment Strategy
Investment Strategy Transactions Evaluated on Four Key Factors • Generate attractive risk-adjusted returns by investing in net lease • Industry drivers and trends commercial real estate, primarily in the U.S. and Northern and Creditworthiness • Competitor analysis Western Europe of Tenant • Company
Slide 6: Proactive Asset Management
Proactive Asset Management Domestic and international asset management capabilities to address lease expirations, changing tenant credit profiles and asset repositioning or dispositions • Asset management offices in New York and Amsterdam • W. P. Carey has proven experience repositioning assets thro
Slide 7: Real Estate Portfolio
Real Estate Portfolio 7
Slide 8: Net-Lease Portfolio
Large Diversified Portfolio (1)(2) Number of Properties 1,424 Number of Tenants 336 Square Footage 172.7 million ABR $1.34 billion Net-Lease Portfolio North America / Europe / Other (% of ABR) 63% / 37% / 1% Contractual Rent Escalation: CPI-linked / Fixed / Other (3) 56% / 41% / 3% WALT 11.7 years O
Slide 9: Top Ten Net Lease Tenants
Top Ten Net Lease Tenants (1) One of the lowest Top 10 concentrations among the net lease peer group Number of ABR WALT % of Tenant Description Properties ($ millions) (years) Total Net lease self-storage properties in the U.S. (2) 78 $39 0.2 2.9% Government office properties in Spain (3) 70 33 11.0
Slide 10: Property and Industry Diversification
Property and Industry Diversification (1)(2) Property Type Diversification (% of ABR) Tenant Industry Diversification (% of ABR) 10% 10% 59% Industrial / Warehouse 2% 23% 5% 2% 3% 32% 5% 3% 4% 4% 10% 4% 21% 4% 8% 5% 5% 7% 26% 6% Industrial 32% Retail Stores (3) 23% Capital Equipment 4% Warehouse 26%
Slide 11: Geographic Diversification
Geographic Diversification (1)(2) W. P. Carey has been investing internationally for approximately 25 years, primarily in Northern and Western Europe Other (5), 1% $8MM Through our financing and hedging strategies, we’ve significantly mitigated currency risk through a combination of over- weighting
Slide 12: Internal Growth from Contractual Rent Increases
Internal Growth from Contractual Rent Increases (1)(2) Over 99% of ABR comes from leases with contractual rent increases, including 56% linked to CPI None 0.4% Other (3) 3% Uncapped CPI 38% Fixed 41% CPI-linked 56% Capped CPI 18% 1. Portfolio information reflects pro rata ownership of real estate as
Slide 13: Same Store ABR Growth
Same Store ABR Growth (1) Contractual same store growth of 4.1% (2) 4.5% 4.3% 4.3% 4.2% 4.1% 4.0% 3.5% 3.4% 3.4% 3.0% 3.0% 2.7% 2.5% 2.0% 1.8% 1.6% 1.6% 1.5% 1.5% 1.0% 0.5% 0.0% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1. Portfolio metrics do not reflect the sale of the State of A
Slide 14: Lease Expirations and Average Lease Term
Lease Expirations and Average Lease Term (1) Weighted-average lease term of 11.7 years Lease Expirations (% ABR) (2) 49.3% 50% 40% 30% 20% 10% 7.1% 5.7% 5.7% 4.5% 4.7% 4.3% 5.0% 3.4% 4.5% 3.1% 2.7% 0% (3) (4) 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Thereafter 1. Portfolio information
Slide 15: Historical Occupancy
Historical Occupancy (1)(2) Stable occupancy maintained during the aftermath of the global financial crisis and throughout the COVID-19 pandemic Occupancy (% Square Feet) (3) 100% 98.4% 98.8% 99.0% 99.2% 99.3% 99.8% 98.3% 98.9% 98.5% 98.5% 98.8% 98.1% 96.6% 97.3% 80% 60% 40% 20% 0% 2010 2011 2012 20
Slide 16: Recent Acquisitions – Case Studies
Recent Acquisitions – Case Studies Recent investment activity has been focused primarily on mission critical industrial and warehouse properties and essential retail Recent Acquisitions Coop Apotex Fedrigoni February - November 2022 (30 properties) April 2023 (11 properties) November 2023 / January
Slide 17: Capital Investments – Case Studies
Capital Investments – Case Studies Capital investments have become a more meaningful part of our investment activity and allow us to pursue follow-on opportunities with existing tenants Recent Capital Investments Upfield Group Berry Plastics Unchained Labs Completed July 2022 Completed March 2023 Co
Slide 18: Balance Sheet
WP_CAREY Balance Sheet
Slide 19: Balance Sheet Overview
Balance Sheet Overview Capitalization ($MM) (1) 12/31/23 Capitalization (%) Total Equity (2) $14,172 3% 7% Pro Rata Net Debt Equity (2) Senior Unsecured Notes USD 2,900 Senior Unsecured Notes Senior Unsecured Notes EUR 3,177 63% Mortgage Debt, pro rata USD 418 Unsecured Revolving Credit Facility / 2
Slide 20: Debt Maturity Schedule
Debt Maturity Schedule Principal at Maturity (1) Mortgage Unsecured Unsecured Unsecured Unsecured 2,200 Debt (2) Bonds (EUR) Bonds (USD) Term Loans Revolving Credit Facility (3) 2,000 1,800 1,600 1,400 553 1,200 $MM 500 1,000 800 350 581 21 404 600 553 2 450 400 553 350 553 325 580 553 500 200 425 2
Slide 21: Unsecured Bond Covenants
Unsecured Bond Covenants (1) Investment grade balance sheet rated Baa1 (stable) by Moody’s and BBB+ (stable) by S&P Senior Unsecured Notes (2) Metric Covenant December 31, 2023 Total Debt / Total Leverage Total Assets ≤ 60% 42.3% Secured Debt / Secured Debt Leverage Total Assets ≤ 40% 3.1% Consolida
Slide 22: ESG
ESG 22
Slide 23: ESG Strategy
ESG Strategy • We remain committed to our founder’s dedication to Investing for the Long Run® and Doing Good While Doing Well® and his ongoing commitment to making a positive difference within our business, local communities and beyond • Our cross-functional ESG Committee serves to support our ongoi
Slide 24: Cautionary Statement Concerning Forward-Looking Statements
Cautionary Statement Concerning Forward-Looking Statements Certain of the matters discussed in this communication constitute forward-looking statements within the meaning of the Securities Act of 1933 (as amended, the “Securities Act”) and the Securities Exchange Act of 1934 (as amended, the “Exchan
Slide 25: Disclosures
Disclosures The following non-GAAP financial measures are used in this presentation EBITDA and Adjusted EBITDA We believe that EBITDA is a useful supplemental measure to investors and analysts for assessing the performance of our business segments because (i) it removes the impact of our capital str
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