W. P. Carey Inc. Reit · NYSE:WPC
W. P. Carey Inc. Reit — Q4 2020 Earnings Presentation
29 slides from W. P. Carey Inc. Reit's earnings presentation, Feb 12, 2021
Slide 1: W. P. Carey Inc. Investor Presentation 4Q20
W. P. Carey Inc. Investor Presentation 4Q20 Investing for the long run®
Slide 2: Table of Contents
Investing for the long run® Table of Contents 1. Overview 2. Real Estate Portfolio 3. Balance Sheet 4. Investment Management 5. COVID-19 Update Unless otherwise noted, all data in this presentation is as of December 31, 2020. Amounts may not sum to totals due to rounding.
Slide 3: 1. Overview
WP. CAREY aii ek? i 7 : a a . as CI "4 | oes |e cee eee © 1. Overview 5 ' 3 ere Tih,
Slide 4: Company Highlights
Company Highlights W. P. Carey (NYSE: WPC) is a REIT that specializes in investing in net lease commercial real estate, primarily in the U.S. and Northern and Western Europe One of the largest owners of net lease assets and among the top 25 REITs in the MSCI US REIT Index Highly diversified portfoli
Slide 5: Business Model and Structure
Business Model and Structure (1) W. P. Carey is the largest diversified net lease REIT Public REIT (NYSE: WPC) ~$19 billion of Enterprise Value (2) Real Estate Portfolio (3) Advisor to $2.8 billion of AUM 1,243 net lease properties / 144 million sq. ft. / 10.6 year WALT / $1.2 billion of ABR Corpora
Slide 6: Investment Strategy
Investment Strategy • Generate attractive risk-adjusted returns by Transactions Evaluated on Four Key Factors identifying and investing in net-lease commercial real estate, primarily in the U.S. and Northern & • Industry drivers and trends Western Europe Creditworthiness • Competitor analysis • Prot
Slide 7: 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 8: 2. Real Estate Portfolio
WP. CAREY 2. Real Estate Portfolio
Slide 9: Large Diversified Portfolio
Large Diversified Portfolio (1) Number of Properties 1,243 Number of Tenants 350 Square Footage 144 million ABR $1.2 billion US / Europe / Other (% of ABR) 61% / 37% / 2% Contractual Rent Escalation: CPI-linked / Fixed / Other 62% / 33% / 4% WALT 10.6 years Occupancy 98.5% Investment Grade Tenants (
Slide 10: Property and Industry Diversification
Property and Industry Diversification (1) By Property Type (% of ABR) By Tenant Industry (% of ABR) 8% 47% Industrial / Warehouse 15% 5% 22% 25% 2% 3% 18% 3% 3% 8% 4% 4% 6% 22% 4% 4% 6% 23% 5% 5% 5% Retail Stores (2) 22% Consumer Services 8% Automotive 6% Industrial 25% Grocery 6% Cargo Transportati
Slide 11: Top Ten Tenants
Top Ten Tenants (1) One of the lowest Top 10 concentrations among the net lease peer group Number of ABR WALT % of Tenant Description Properties ($ millions) (years) Total Net lease self-storage properties in the U.S. 78 $39 3.3 3.3% Do-it-yourself retail properties in Germany 42 37 16.2 3.1% Govern
Slide 12: Geographic Diversification
Geographic Diversification (1) W. P. Carey has been investing internationally for 22 years, primarily in Northern and Western Europe Other (2), 2%, $24MM Europe, 37%, $433 MM United States, 61%, $726 MM (1) Portfolio information reflects pro rata ownership of real estate assets (excluding operating
Slide 13: Internal Growth from Contractual Rent Increases
Internal Growth from Contractual Rent Increases (1) Approximately 100% of leases have contractual rent increases, including 62% linked to CPI None, 0.5% (2) Other, 4% Uncapped Fixed, 33% CPI, 39% 62% CPI-linked CPI-based, 23% (1) Portfolio information reflects pro rata ownership of real estate asset
Slide 14: Same-Store ABR Growth
Same-Store ABR Growth Contractual same store growth of 1.5% Contractual Same Store Growth 2.2% 2.2% 2.0% 2.0% 1.9% 1.8% 1.8% 1.6% 1.6% 1.6% 1.6% 1.5% 1.5% 1.5% 1.5% 1.4% 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 (1) Contractual same store por
Slide 15: Lease Expirations and Average Lease Term
Lease Expirations and Average Lease Term (1) Weighted average lease term of 10.6 years Lease Expirations (% ABR) (2) 49.5% 50% 40% 30% 20% 9.5% 10% 5.3% 5.3% 6.2% 5.4% 5.9% 4.4% 3.4% 3.4% 1.7% 0% 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Thereafter (1) Portfolio information reflects pro rata
Slide 16: Historical Occupancy
Historical Occupancy (1) Stable occupancy maintained during the credit crisis and economic downturn Occupancy (% Square Feet) (2) 100% 98.5% 98.4% 98.8% 99.0% 99.2% 99.3% 99.8% 98.3% 98.9% 98.5% 97.1% 96.6% 97.3% 80% 60% 40% 20% 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (1)
Slide 17: Recent Acquisitions – Case Studies
Recent Acquisitions – Case Studies Completed investments totaling $2.6 billion since the beginning of 2018 • Comprised of $2.1 billion on-balance-sheet acquisitions and $485 million of capital investment projects Recent Acquisitions DSG International Weber-Stephen Products Eroski January 2020 Septem
Slide 18: Capital Investment Projects – Case Studies
Capital Investment Projects – Case Studies Capital investment projects have become a more meaningful part of our investment activity • Completed on-balance-sheet capital investment projects totaling $246 million in 2020 • Approximately $200 million of projects are in process as of December 31, 2020,
Slide 19: 3. Balance Sheet
WP. CAREY 3. Balance Sheet
Slide 20: Balance Sheet Overview
Balance Sheet Overview Capitalization (%) Capitalization ($MM) 12/31/20 2% Total Equity (1) $12,380 Pro Rata Net Debt 7% (1) Equity 64% Senior Unsecured Notes USD 2,125 Senior Unsecured Notes 27% Senior Unsecured Notes EUR 3,068 27% 64% Mortgage Debt, pro rata USD 956 Mortgage Debt (pro rata) 7% Mor
Slide 21: Debt Maturity Schedule
Debt Maturity Schedule Principal at Maturity (1) (2) 1,400 Mortgage Unsecured Unsecured Unsecured Unsecured Debt Bonds (EUR) Bonds (USD) Term Loan Revolver 1,200 500 1,000 82 800 350 $MM 323 614 600 614 400 450 614 614 614 500 200 406 364 325 96 187 32 21 89 0 2021 2022 2023 2024 2025 2026 2027 2028
Slide 22: Unsecured Bond Covenants
Unsecured Bond Covenants (1) Investment grade balance sheet with Baa2/stable rating from Moody’s and BBB/stable rating from S&P Senior Unsecured Notes (2) Metric Covenant December 31, 2020 Total Debt / Total Leverage ≤ 60% 43.6% Total Assets Secured Debt / Secured Debt Leverage ≤ 40% 7.4% Total Asse
Slide 23: Dividends per Share
History of Consistent Dividend Growth W. P. Carey has increased its dividend every year since going public in 1998 • Current annualized dividend of $4.18 with a yield of 5.9% (1) • Conservative and stable payout ratio since conversion to a REIT in September 2012 Dividends per Share (2) $5.00 $4.14 $
Slide 24: 4. Investment Management
WP. CAREY 4. Investment Management
Slide 25: Summary of Non-Traded Investment Programs
Summary of Non-Traded Investment Programs Total AUM of $2.8 billion, including $1.5 billion of net lease AUM • CWI 1 and CWI 2 merged and internalized management in April 2020 • Closed merger with CPA:17 in October 2018 • Exited non-traded retail fundraising in June 2017 CPA:18 CESH Student Investme
Slide 26: 5. COVID-19 Update
WP. CAREY as = i i = it — — Ue Se 5. COVID-19 Update
Slide 27: 4Q20 Rent Payment Status
4Q20 Rent Payment Status WPC collected 99% of rent due in the fourth quarter Total Rent Due 4Q20 Property Type 1% % % of 4Q20 rent of total ABR due and paid (1) Industrial 24% 100% Warehouse 23% 99% Office 23% 100% Retail 17% 99% Fitness, Theater and Restaurants 1% 82% Self Storage (net lease) 5% 10
Slide 28: 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 and the Exchange Act of 1934, both as amended by the Private Securities Litigation Reform Act of 19
Slide 29: 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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