W. P. Carey Inc. Reit · NYSE:WPC
W. P. Carey Inc. Reit — Q1 2020 Earnings Presentation
51 slides from W. P. Carey Inc. Reit's earnings presentation, May 1, 2020
Slide 1: Supplemental Information First Quarter 2020
W. P. Carey Inc. Supplemental Information First Quarter 2020
Slide 2: Important Disclosures About This Supplemental Package
Important Disclosures About This Supplemental Package As used in this supplemental package, the terms “W. P. Carey,” “WPC,” “we,” “us” and “our” include W. P. Carey Inc., its consolidated subsidiaries and its predecessors, unless otherwise indicated. “REIT” means real estate investment trust. “CPA:1
Slide 3: Table of Contents
W. P. Carey Inc. Supplemental Information – First Quarter 2020 Table of Contents Overview Summary Metrics 1 Components of Net Asset Value 3 Financial Results Statements of Income – Last Five Quarters Consolidated 6 Real Estate 7 Investment Management 8 FFO and AFFO – Last Five Quarters Consolidated
Slide 4: Summary Metrics
W. P. Carey Inc. Overview – First Quarter 2020 Summary Metrics As of or for the three months ended March 31, 2020. Financial Results Segment Owned Investment Real Estate Management Total Revenues, including reimbursable costs – consolidated ($000s) $ 294,586 $ 14,413 $ 308,999 Net income (loss) attr
Slide 5: Overview – First Quarter 2020
W. P. Carey Inc. Overview – First Quarter 2020 (e) Gross assets represent consolidated total assets before accumulated depreciation on buildings and improvements. Gross assets are net of accumulated amortization on in-place lease intangible assets of $714.7 million and above-market rent intangible a
Slide 6: Components of Net Asset Value
W. P. Carey Inc. Overview – First Quarter 2020 Components of Net Asset Value Dollars in thousands, except per share amounts. Three Months Ended Real Estate Mar. 31, 2020 Annualized Normalized pro rata cash NOI (a) (b) $ 270,964 $ 1,083,856 Investment Management Adjusted EBITDA (a) (b) 7,590 30,360 S
Slide 7: Overview – Other
W. P. Carey Inc. Overview – First Quarter 2020 Other Ownership % Estimated Value Ownership in Managed Programs: (g) CPA:18 – Global (h) 4.0% $ 52,951 CWI 1 (i) 4.2% 21,899 (i) CWI 2 4.0% 15,497 CESH (j) 2.4% 3,492 $ 93,839 ________ (a) Normalized pro rata cash NOI and adjusted EBITDA are non-GAAP me
Slide 8: Financial Results First Quarter 2020
W. P. Carey Inc. Financial Results First Quarter 2020 Investing for the long runTM | 5
Slide 9: Consolidated Statements of Income – Last Five Quarters
W. P. Carey Inc. Financial Results – First Quarter 2020 Consolidated Statements of Income – Last Five Quarters In thousands, except share and per share amounts. Three Months Ended Mar. 31, 2020 Dec. 31, 2019 Sep. 30, 2019 Jun. 30, 2019 Mar. 31, 2019 Revenues Real Estate: Lease revenues $ 282,110 $ 2
Slide 10: Statements of Income, Real Estate – Last Five Quarters
W. P. Carey Inc. Financial Results – First Quarter 2020 Statements of Income, Real Estate – Last Five Quarters In thousands, except share and per share amounts. Three Months Ended Mar. 31, 2020 Dec. 31, 2019 Sep. 30, 2019 Jun. 30, 2019 Mar. 31, 2019 Revenues Lease revenues $ 282,110 $ 274,795 $ 278,
Slide 11: Statements of Income, Investment Management – Last Five Quarters
W. P. Carey Inc. Financial Results – First Quarter 2020 Statements of Income, Investment Management – Last Five Quarters In thousands, except share and per share amounts. Three Months Ended Mar. 31, 2020 Dec. 31, 2019 Sep. 30, 2019 Jun. 30, 2019 Mar. 31, 2019 Revenues Asset management revenue $ 9,88
Slide 12: FFO and AFFO, Consolidated – Last Five Quarters
W. P. Carey Inc. Financial Results – First Quarter 2020 FFO and AFFO, Consolidated – Last Five Quarters In thousands, except share and per share amounts. Three Months Ended Mar. 31, 2020 Dec. 31, 2019 Sep. 30, 2019 Jun. 30, 2019 Mar. 31, 2019 Net income attributable to W. P. Carey $ 66,090 $ 129,372
Slide 13: FFO and AFFO, Real Estate – Last Five Quarters
W. P. Carey Inc. Financial Results – First Quarter 2020 FFO and AFFO, Real Estate – Last Five Quarters In thousands, except share and per share amounts. Three Months Ended Mar. 31, 2020 Dec. 31, 2019 Sep. 30, 2019 Jun. 30, 2019 Mar. 31, 2019 Net income from Real Estate attributable to W. P. Carey $
Slide 14: FFO and AFFO, Investment Management – Last Five Quarters
W. P. Carey Inc. Financial Results – First Quarter 2020 FFO and AFFO, Investment Management – Last Five Quarters In thousands, except share and per share amounts. Three Months Ended Mar. 31, 2020 Dec. 31, 2019 Sep. 30, 2019 Jun. 30, 2019 Mar. 31, 2019 Net (loss) income from Investment Management att
Slide 15: Elements of Pro Rata Statement of Income and AFFO Adjustments
W. P. Carey Inc. Financial Results – First Quarter 2020 Elements of Pro Rata Statement of Income and AFFO Adjustments In thousands. For the three months ended March 31, 2020. We believe that the table below is useful for investors to help them better understand our business by illustrating the impac
Slide 16: Financial Results – First Quarter 2020 (footnotes)
W. P. Carey Inc. Financial Results – First Quarter 2020 (g) Represents adjusted modified funds from operations (“Adjusted MFFO”) from CPA:18 – Global in place of our pro rata share of net income from our ownership in CPA: 18 – Global. Adjusted MFFO is defined as MFFO adjusted for deferred taxes and
Slide 17: Capital Expenditures
W. P. Carey Inc. Financial Results – First Quarter 2020 Capital Expenditures In thousands. For the three months ended March 31, 2020. Tenant Improvements and Leasing Costs Tenant improvements $ 5,766 Leasing costs 1,624 Tenant Improvements and Leasing Costs 7,390 Maintenance Capital Expenditures Net
Slide 18: Balance Sheets and Capitalization First Quarter 2020
W. P. Carey Inc. Balance Sheets and Capitalization First Quarter 2020 Investing for the long runTM | 15
Slide 19: Consolidated Balance Sheets
W. P. Carey Inc. Balance Sheets and Capitalization – First Quarter 2020 Consolidated Balance Sheets In thousands, except share and per share amounts. Mar. 31, 2020 Dec. 31, 2019 Assets Investments in real estate: Land, buildings and improvements (a) $ 10,019,597 $ 9,856,191 Net investments in direct
Slide 20: Capitalization
W. P. Carey Inc. Balance Sheets and Capitalization – First Quarter 2020 Capitalization In thousands, except share and per share amounts. As of March 31, 2020. Description Shares Share Price Market Value Equity Common equity 172,402,516 $ 58.08 $ 10,013,138 Preferred equity — Total Equity Market Capi
Slide 21: Debt Overview
W. P. Carey Inc. Balance Sheets and Capitalization – First Quarter 2020 Debt Overview Dollars in thousands. Pro rata. As of March 31, 2020. USD-Denominated EUR-Denominated Other Currencies (a) Total Outstanding Balance Weigh- Weigh- Weigh- Weigh- Weigh- Out- ted Out- ted Out- ted ted ted standing Av
Slide 22: Debt Maturity
W. P. Carey Inc. Balance Sheets and Capitalization – First Quarter 2020 Debt Maturity Dollars in thousands. Pro rata. As of March 31, 2020. Real Estate Debt Weighted- Total % of Total Number of Average Outstanding Outstanding Year of Maturity Properties (a) ABR (a) Interest Rate Balloon Balance (b)
Slide 23: Senior Unsecured Notes
W. P. Carey Inc. Balance Sheets and Capitalization – First Quarter 2020 Senior Unsecured Notes As of March 31, 2020. Ratings Issuer / Corporate Senior Unsecured Notes Ratings Agency Rating Outlook Rating Moody's Baa2 Stable Baa2 Standard & Poor's BBB Positive (a) BBB ________ (a) In April 2020, Stan
Slide 24: Real Estate First Quarter 2020
W. P. Carey Inc. Real Estate First Quarter 2020 Investing for the long runTM | 21
Slide 25: Investment Activity – Capital Investment Projects
W. P. Carey Inc. Real Estate – First Quarter 2020 Investment Activity – Capital Investment Projects (a) Dollars in thousands. Pro rata. Funded During Three Total Estimated Months Funded Maximum Primary Expected Change in Lease Ended Through Commitment Transaction Property Completion Square Term Mar.
Slide 26: Investment Activity – Acquisitions and Completed Capital Investment Projects
W. P. Carey Inc. Real Estate – First Quarter 2020 Investment Activity – Acquisitions and Completed Capital Investment Projects Dollars in thousands. Pro rata. For the three months ended March 31, 2020. Closing Gross Date / Asset Gross Investment Completion Property Square Tenant / Lease Guarantor Pr
Slide 27: Investment Activity – Dispositions
W. P. Carey Inc. Real Estate – First Quarter 2020 Investment Activity – Dispositions Dollars in thousands. Pro rata. For the three months ended March 31, 2020. Gross Gross Sale Property Square Tenant / Lease Guarantor Property Location(s) Price Closing Date Type(s) Footage 1Q20 Blue Cross and Blue S
Slide 28: Joint Ventures
W. P. Carey Inc. Real Estate – First Quarter 2020 Joint Ventures Dollars in thousands. As of March 31, 2020. JV Partnership Consolidated Pro Rata (a) Joint Venture or JV Debt Debt (Principal Tenant) Partner WPC % Outstanding (b) ABR Outstanding (c) ABR (d) Unconsolidated Joint Ventures (Equity Metho
Slide 29: Top Ten Tenants
W. P. Carey Inc. Real Estate – First Quarter 2020 Top Ten Tenants Dollars in thousands. Pro rata. As of March 31, 2020. Weighted- Number of Average Lease Tenant / Lease Guarantor Description Properties ABR ABR % Term (Years) U-Haul Moving Partners Inc. and Mercury Partners, LP Net lease self-storage
Slide 30: Diversification by Property Type
W. P. Carey Inc. Real Estate – First Quarter 2020 Diversification by Property Type In thousands, except percentages. Pro rata. As of March 31, 2020. Total Net-Lease Portfolio Square Property Type ABR ABR % Footage (a) Sq. ft. % U.S. Industrial $ 197,940 17.7% 37,595 26.6% Office 165,173 14.7% 10,612
Slide 31: Diversification by Tenant Industry
W. P. Carey Inc. Real Estate – First Quarter 2020 Diversification by Tenant Industry In thousands, except percentages. Pro rata. As of March 31, 2020. Total Net-Lease Portfolio Square Industry Type ABR ABR % Footage Sq. ft. % (a) Retail Stores $ 249,276 22.3% 32,667 23.2% Consumer Services 99,762 8.
Slide 32: Diversification by Geography
W. P. Carey Inc. Real Estate – First Quarter 2020 Diversification by Geography In thousands, except percentages. Pro rata. As of March 31, 2020. Total Net-Lease Portfolio Square Region ABR ABR % Footage (a) Sq. ft. % U.S. South Texas $ 97,713 8.7% 11,411 8.1% Florida 47,322 4.2% 4,060 2.9% Georgia 2
Slide 33: Contractual Rent Increases
W. P. Carey Inc. Real Estate – First Quarter 2020 Contractual Rent Increases In thousands, except percentages. Pro rata. As of March 31, 2020. Total Net-Lease Portfolio Square Rent Adjustment Measure ABR ABR % Footage Sq. ft. % (Uncapped) CPI $ 432,626 38.6% 51,099 36.2% Fixed 361,866 32.3% 50,808 3
Slide 34: Same Store Analysis
W. P. Carey Inc. Real Estate – First Quarter 2020 Same Store Analysis Dollars in thousands. Pro rata. Contractual Same Store Growth Same store portfolio includes leases that were continuously in place during the period from March 31, 2019 to March 31, 2020. Excludes leases for properties that were a
Slide 35: Comprehensive Same Store Growth
W. P. Carey Inc. Real Estate – First Quarter 2020 Comprehensive Same Store Growth Same store portfolio includes leased properties that were continuously owned during the period from March 31, 2019 to March 31, 2020. Excludes properties that were acquired, sold or listed as capital investment project
Slide 36: Leasing Activity
W. P. Carey Inc. Real Estate – First Quarter 2020 Leasing Activity For the three months ended March 31, 2020, except ABR. Pro rata. Lease Renewals and Extensions (a) ABR Expected Tenant Leasing Square Number of Prior Lease New Lease Releasing Improvements Commissions Incremental Property Type Feet L
Slide 37: Lease Expirations
W. P. Carey Inc. Real Estate – First Quarter 2020 Lease Expirations In thousands, except percentages and number of leases. Pro rata. As of March 31, 2020. Number of Number of Tenants with (a) Year of Lease Expiration Leases Expiring Leases Expiring ABR ABR % Square Footage Sq. ft. % Remaining 2020 1
Slide 38: Investment Management First Quarter 2020
W. P. Carey Inc. Investment Management First Quarter 2020 Investing for the long runTM | 35
Slide 39: Selected Information – Managed Programs
W. P. Carey Inc. Investment Management – First Quarter 2020 Selected Information – Managed Programs Dollars and square footage in thousands, except per share amounts. As of or for the three months ended March 31, 2020. Remaining Managed Programs Former Managed Programs (a) CPA:18 – Global CESH CWI 1
Slide 40: Managed Programs Fee Summary
W. P. Carey Inc. Investment Management – First Quarter 2020 Managed Programs Fee Summary Dollars in thousands. For the three months ended March 31, 2020, unless otherwise noted. Remaining Managed Programs Former Managed Programs (a) CPA:18 – Global CESH (b) CWI 1 CWI 2 Total Year established 2013 20
Slide 41: Investment Activity – Managed Programs
W. P. Carey Inc. Investment Management – First Quarter 2020 Investment Activity – Managed Programs Dollars in thousands. Pro rata. For the three months ended March 31, 2020. Acquisitions Gross Gross Investment Closing Property Square Fund Developer Property Location(s) Amount Date Type(s) Footage Ow
Slide 42: Summary of Future Liquidity Strategies for the Managed Programs
W. P. Carey Inc. Investment Management – First Quarter 2020 Summary of Future Liquidity Strategies for the Managed Programs As of March 31, 2020. Liquidity events for the Managed REITs must be approved by each Managed REIT’s board of directors. A liquidity transaction could include sales of assets,
Slide 43: Summary of Back-End Fees for / Interests in the Managed Programs
W. P. Carey Inc. Investment Management – First Quarter 2020 Summary of Back-End Fees for / Interests in the Managed Programs The overview below is intended to provide a summary of current disclosures regarding various back-end fees and interests that we may be entitled to upon each Managed Program’s
Slide 44: Appendix First Quarter 2020
W. P. Carey Inc. Appendix First Quarter 2020 Investing for the long runTM | 41
Slide 45: Normalized Pro Rata Cash NOI
W. P. Carey Inc. Appendix – First Quarter 2020 Normalized Pro Rata Cash NOI In thousands. From real estate. Three Months Ended Mar. 31, 2020 Consolidated Lease Revenues Total lease revenues – as reported $ 282,110 Less: Consolidated Reimbursable and Non-Reimbursable Property Expenses Reimbursable pr
Slide 46: Appendix – Reconciliation to Normalized Pro Rata Cash NOI
W. P. Carey Inc. Appendix – First Quarter 2020 The following table presents a reconciliation from Net income from Real Estate attributable to W. P. Carey to Normalized pro rata cash NOI: Three Months Ended Mar. 31, 2020 Net Income from Real Estate Attributable to W. P. Carey Net income from Real Est
Slide 47: Adjusted EBITDA, Consolidated – Last Five Quarters
W. P. Carey Inc. Appendix – First Quarter 2020 Adjusted EBITDA, Consolidated – Last Five Quarters In thousands. Three Months Ended Mar. 31, 2020 Dec. 31, 2019 Sep. 30, 2019 Jun. 30, 2019 Mar. 31, 2019 Net income $ 66,702 $ 129,792 $ 41,835 $ 66,121 $ 68,796 Adjustments to Derive Consolidated EBITDA
Slide 48: Adjusted EBITDA, Real Estate – Last Five Quarters
W. P. Carey Inc. Appendix – First Quarter 2020 Adjusted EBITDA, Real Estate – Last Five Quarters In thousands. Three Months Ended Mar. 31, 2020 Dec. 31, 2019 Sep. 30, 2019 Jun. 30, 2019 Mar. 31, 2019 Net income from Real Estate $ 101,526 $ 124,317 $ 33,545 $ 60,759 $ 53,334 Adjustments to Derive Con
Slide 49: Adjusted EBITDA, Investment Management – Last Five Quarters
W. P. Carey Inc. Appendix – First Quarter 2020 Adjusted EBITDA, Investment Management – Last Five Quarters In thousands. Three Months Ended Mar. 31, 2020 Dec. 31, 2019 Sep. 30, 2019 Jun. 30, 2019 Mar. 31, 2019 Net (loss) income from Investment Management $ (34,824) $ 5,475 $ 8,290 $ 5,362 $ 15,462 A
Slide 50: Terms and Definitions
W. P. Carey Inc. Appendix – First Quarter 2020 Terms and Definitions Non-GAAP Financial Disclosures FFO and AFFO Due to certain unique operating characteristics of real estate companies, as discussed below, NAREIT, an industry trade group, has promulgated a non- GAAP measure known as FFO, which we b
Slide 51: Appendix – Adjusted EBITDA
W. P. Carey Inc. Appendix – First Quarter 2020 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 structure from our operating results and (ii) becau
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