W. P. Carey Inc. Reit · NYSE:WPC
W. P. Carey Inc. Reit — Q3 2024 Earnings Presentation
26 slides from W. P. Carey Inc. Reit's earnings presentation, Oct 30, 2024
Slide 1: W. P. Carey Inc. Investor Presentation 3Q24
W. P. Carey Inc. Investor Presentation 3Q24 50+ Years of Investing for the Long Run®
Slide 2: Table of Contents
Table of Contents Overview 3 Real Estate Portfolio 7 Balance Sheet 19 ESG 23 Unless otherwise noted, all data in this presentation is as of September 30, 2024. Amounts may not sum to totals due to rounding.
Slide 3: Overview
WPCA REY, 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: Large Diversified Portfolio
Large Diversified Portfolio (1) Number of Properties 1,430 Number of Tenants 346 Square Footage 171.8 million ABR $1.33 billion Net-Lease Portfolio North America / Europe / Other (% of ABR) 64% / 36% / 1% Contractual Rent Escalation: CPI-linked / Fixed / Other (2) 53% / 43% / 4% WALT 12.2 years Occu
Slide 9: Top 25 Net Lease Tenants
Top 25 Net Lease Tenants (1) One of the lowest Top 10 and 20 concentrations among the net lease peer group Number of ABR WALT % of Tenant Description Properties ($ millions) (years) Total Net lease self-storage properties in the U.S. leased to publicly traded self-storage REIT 39 36 24.9 2.7% Pharma
Slide 10: Top 25 Net Lease Tenants (continued)
Top 25 Net Lease Tenants (continued) (1) Number of ABR WALT % of Tenant Description Properties ($ millions) (years) Total Distribution facilities and manufacturing facility in the U.S. leased to global hardware wholesaler (5) 9 19 13.8 1.4% Distribution facilities and retail properties in Lithuania,
Slide 11: Property and Industry Diversification
Property and Industry Diversification (1) Property Type Diversification (% of ABR) Tenant Industry Diversification (% of ABR) 10% 15% 64% Industrial / Warehouse 2% 23% 3% 3% 35% 3% 4% 22% 4% 9% 4% 4% 8% 4% 5% 7% 28% 7% Industrial 35% Retail Stores (2) 23% Cargo Transportation 4% Warehouse 28% Consum
Slide 12: Geographic Diversification
Geographic Diversification (1) W. P. Carey has been investing internationally for over 25 years, primarily in Northern and Western Europe Other (4), 1% $8MM Through our financing and hedging strategies, we’ve significantly mitigated currency risk through a combination of over-weighting our debt in f
Slide 13: Internal Growth from Contractual Rent Increases
Internal Growth from Contractual Rent Increases (1) Over 99% of ABR comes from leases with contractual rent increases, including 53% linked to CPI None <1% Other (2) 3% Uncapped CPI 33% Fixed 43% CPI-linked 53% Capped CPI 20% 1. Portfolio information reflects pro rata ownership of real estate assets
Slide 14: Same Store ABR Growth
Same Store ABR Growth Contractual same store growth of 2.8% (1) 4.5% 4.3% 4.3% 4.2% 4.1% 4.0% 3.5% 3.4% 3.4% 3.1% 3.0% 3.0% 2.9% 2.8% 2.7% 2.5% 2.0% 1.8% 1.5% 1.0% 0.5% 0.0% 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 1. Contractual same store portfolio includes leases that were cont
Slide 15: Lease Expirations and Average Lease Term
Lease Expirations and Average Lease Term (1) Weighted-average lease term of 12.2 years Lease Expirations (% ABR) (2) 60% 54.5% 50% 40% 30% 20% 10% 5.9% 5.9% 6.4% 4.8% 5.2% 4.7% 4.1% 2.7% 2.7% 2.8% 0.3% 0% 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Thereafter 1. Portfolio information refl
Slide 16: Historical Occupancy
Historical Occupancy (1) Stable occupancy maintained during the aftermath of the global financial crisis and throughout the COVID-19 pandemic Occupancy (% Square Feet) (2) 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% 98.8% 96.6% 97.3% 80% 60% 40% 20% 0% 2010 2011 2012
Slide 17: 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 Portfolio Acquisition Metra Angelo Gordon Portfolio Zabka March 2024 (5 properties) May – August 2024 (19 properti
Slide 18: 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 Hexagon Composites Danske Terran Orbital Completed March 2024 Completed April 2024 Comp
Slide 19: Balance Sheet
WPCA REY, Balance Sheet
Slide 20: Balance Sheet Overview
Balance Sheet Overview Capitalization ($MM) (1) 9/30/24 Capitalization (%) Total Equity (2) $13,634 6% 3% Pro Rata Net Debt Equity (2) Senior Unsecured Notes USD 2,800 Senior Unsecured Notes EUR 3,387 Senior Unsecured Notes Mortgage Debt, pro rata USD 337 Unsecured Revolving Credit Facility / 63% 28
Slide 21: Debt Maturity Schedule
Debt Maturity Schedule Principal at Maturity (1) Mortgage Unsecured Unsecured Unsecured Unsecured 1,800 Debt (2) Bonds (EUR) Bonds (USD) Term Loans Revolving Credit Facility (3) 1,600 1,400 560 1,200 350 1,000 $MM 603 350 800 600 230 450 73 952 400 560 29 11 2 560 325 560 588 500 200 425 400 241 168
Slide 22: 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 September 30, 2024 Total Debt / Total Leverage ≤ 60% 41.1% Total Assets Secured Debt / Secured Debt Leverage ≤ 40% 2.3% Total Assets Consolid
Slide 23: ESG
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Slide 24: ESG
ESG We continue to demonstrate our ongoing commitment to sustainability initiatives, corporate social responsibility and governance as described in our sixth annual ESG Report Recent highlights include: Our Portfolio includes: Engaged with tenants to identify property-level sustainability opportun
Slide 25: 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 26: 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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