W. P. Carey Inc. Reit · NYSE:WPC
W. P. Carey Inc. Reit — Q1 2023 Earnings Presentation
26 slides from W. P. Carey Inc. Reit's earnings presentation, Apr 28, 2023
Slide 1: W. P. Carey Inc. Investor Presentation 1Q23
W. P. Carey Inc. Investor Presentation 1Q23 Investing for the Long Run®
Slide 2: Table of Contents
Table of Contents Overview 3 Real Estate Portfolio 7 Balance Sheet 18 ESG 23 Unless otherwise noted, all data in this presentation is as of March 31, 2023. Amounts may not sum to totals due to rounding.
Slide 3: Overview
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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 One of the largest owners of net lease real estate and among the top 20 REITs in the MSCI US REIT Index Highly d
Slide 5: Investment Strategy
Investment Strategy • Generate attractive risk-adjusted returns by investing in net Transactions Evaluated on Four Key Factors lease commercial real estate, primarily in the U.S. and Northern and Western Europe • Industry drivers and trends • Protect downside by combining credit and real estate Cred
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) Number of Properties 1,446 Number of Tenants 397 Square Footage 176.1 million ABR $1.42 billion Net-Lease Portfolio US / Europe / Other (% of ABR) 62% / 36% / 2% Contractual Rent Escalation: CPI-linked / Fixed / Other (2) 57% / 40% / 4% WALT 10.9 years Occupancy 99.2%
Slide 9: Property and Industry Diversification
Property and Industry Diversification (1) Property Type Diversification (% of ABR) Tenant Industry Diversification (% of ABR) 9% 51% 16% Industrial / Warehouse 21% 5% 27% 3% 3% 17% 3% 8% 3% 3% 3% 8% 3% 17% 24% 4% 6% 4% 6% 5% Industrial 27% Retail Stores (2) 21% Containers, Packaging and Glass 3% War
Slide 10: Top Ten Net Lease Tenants
Top Ten Net Lease Tenants (1) One of the lowest Top 10 concentrations among the net lease peer group Number of ABR WALT % of Tenant Description Properties ($ millions) (years) Total Net lease self-storage properties in the U.S. (2) 78 $39 1.0 2.7% Government office properties in Spain 70 32 11.7 2.2
Slide 11: Geographic Diversification
Geographic Diversification (1) W. P. Carey has been investing internationally for approximately 25 years, primarily in Northern and Western Europe Other (2), 2%, $35MM Through our financing and hedging strategies, we’ve significantly mitigated currency risk Europe, 36%, through a combination of over
Slide 12: 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 57% linked to CPI None, 1.0% (2) Other, 3% Uncapped CPI, 37% Fixed, 40% CPI-linked, 57% Capped CPI, 19% 1. Portfolio information reflects pro rata ownership of real estate
Slide 13: Same Store ABR Growth
Same Store ABR Growth Contractual same store growth of 4.3% (1) 4.5% 4.3% 4.0% 3.5% 3.4% 3.4% 3.0% 3.0% 2.7% 2.5% 2.0% 1.9% 1.8% 1.6% 1.6% 1.6% 1.5% 1.5% 1.5% 1.0% 0.5% 0.0% 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 1. Contractual same store portfolio includes leases that were cont
Slide 14: Lease Expirations and Average Lease Term
Lease Expirations and Average Lease Term (1) Weighted-average lease term of 10.9 years Lease Expirations (% ABR) (2) 50% 46.9% 40% 30% 20% 10% 6.4% 5.9% 5.8% 4.8% 5.0% 5.0% 5.3% 5.0% 4.5% 3.2% 2.2% 0% 2023 2024 (3) 2025 2026 2027 2028 2029 2030 2031 2032 2033 Thereafter 1. Portfolio information refl
Slide 15: Historical Occupancy
Historical Occupancy (1) Stable occupancy maintained during 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% 99.2% 96.6% 97.3% 80% 60% 40% 20% 0% 2010 2011 2012 2013 2014 2015 2016 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 Plaskolite Apotex February - November 2022 (30 properties) January 2023 (6 properties) April 2023* (11 proper
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 Ontex Berry Plastics Completed July 2022 Completed August 2022 Completed
Slide 18: Balance Sheet
Balance Sheet 18
Slide 19: Balance Sheet Overview
Balance Sheet Overview Capitalization ($MM) (1) 3/31/23 Capitalization (%) Total Equity (2) $16,566 5% 5% Pro Rata Net Debt Equity (2) Senior Unsecured Notes USD 2,900 Senior Unsecured Notes EUR 3,127 Senior Unsecured Notes Mortgage Debt, pro rata USD 676 Mortgage Debt (pro rata) 24% 66% Mortgage De
Slide 20: Debt Maturity Schedule
Debt Maturity Schedule Principal at Maturity (1) Mortgage (2) Unsecured Unsecured Unsecured (3) Unsecured (3) (4) 2,400 Debt Bonds (EUR) Bonds (USD) Term Loans Revolving Credit Facility 2,200 2,000 1,800 669 1,600 1,400 $MM 1,200 568 1,000 500 800 350 21 450 2 600 544 400 544 350 544 325 571 544 500
Slide 21: Unsecured Bond Covenants
Unsecured Bond Covenants (1) Investment grade balance sheet with a recent upgrades to Baa1 (stable) from Moody’s and BBB+ (stable) from S&P Senior Unsecured Notes (2) Metric Covenant March 31, 2023 Total Debt / Total Leverage ≤ 60% 40.5% Total Assets Secured Debt / Secured Debt Leverage ≤ 40% 5.1% T
Slide 22: History of Consistent Dividend Growth
History of Consistent Dividend Growth W. P. Carey has increased its dividend every year since going public in 1998 • Current annualized dividend of $4.27 with a yield of 5.5% (1) • Conservative and stable payout ratio since conversion to a REIT in September 2012 Dividends per Share (2) $5.00 $4.21 $
Slide 23: ESG
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Slide 24: ESG Strategy
ESG Strategy • Since our founding in 1973, we have maintained the commitment that acting responsibly towards our stakeholders and our communities is fundamental to being a good corporate citizen • Our cross-functional ESG Committee serves to support our ongoing commitment to environmental and sustai
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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