W. P. Carey Inc. Reit · NYSE:WPC
W. P. Carey Inc. Reit — Q3 2020 Earnings Presentation
29 slides from W. P. Carey Inc. Reit's earnings presentation, Oct 30, 2020
Slide 1: W. P. Carey Inc. Investor Presentation 3Q20
W. P. Carey Inc. Investor Presentation 3Q20 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 September 30, 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 20 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) ~$18 billion of Enterprise Value (2) Real Estate Portfolio (3) Advisor to $2.8 billion of AUM 1,215 net lease properties / 142 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 1,215 Number of Tenants 351 Square Footage 142 million ABR $1.2 billion US / Europe / Other (% of ABR) 63% / 35% / 2% Contractual Rent Escalation: CPI-linked / Fixed / Other 62% / 33% / 4% WALT 10.6 years Occupancy 98.9% Investment Grade Tenants (
Slide 10: Property and Industry Diversification
Property and Industry Diversification (1) By Property Type (% of ABR) By Tenant Industry (% of ABR) 8% 14% 5% 24% 23% 3% 3% 3% 17% 3% 9% 4% 4% 23% 6% 4% 23% 4% 5% 5% 5% 5% 47% Retail Stores (2) 23% Industrial / Warehouse Consumer Services 9% Automotive 6% Industrial 24% Cargo Transportation 5% Busin
Slide 11: Top Ten Tenants
Top Ten Tenants (1) One of the lowest Top 10 concentrations among the net lease peer group Number of ABR WALT % of Tenant Description Properties ($ millions) (years) Total Net lease self-storage properties in the U.S. 78 $39 3.6 3.3% Do-it-yourself retail properties in Germany 42 35 16.4 3.0% 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%, $23MM Europe, 35% $407 MM United States, 63%, $726 MM (1) Portfolio information reflects pro rata ownership of real estate assets (excluding operating p
Slide 13: Internal Growth from Contractual Rent Increases
Internal Growth from Contractual Rent Increases (1) Approximately 99% of leases have contractual rent increases, including 62% linked to CPI None, 0.7% (2) Other, 4% Uncapped Fixed, 33% CPI, 39% 62% CPI-linked CPI-based, 23% (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 1.6% 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% 1.4% 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 (1) Contractual same store portfolio inc
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) 54.3% 50% 40% 30% 20% 9.9% 10% 5.3% 5.3% 6.2% 5.4% 3.8% 4.1% 3.2% 1.8% 0.7% 0% Remaining 2021 2022 2023 2024 2025 2026 2027 2028 2029 Thereafter 2020 (1) Portfolio information reflect
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% 98.9% 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 $2.3 billion since the beginning of 2018 • Comprised of $1.8 billion on-balance-sheet acquisitions and $482 million of capital investment projects Recent Acquisitions Stanley Black & Decker DSG International Weber-Stephen Products Dec
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 $243 million YTD • An additional $172 million of development projects is in process as of September 3
Slide 19: 3. Balance Sheet
WP. CAREY 3. Balance Sheet
Slide 20: Balance Sheet Overview
Balance Sheet Overview Capitalization (%) Capitalization ($MM) 9/30/20 3% Total Equity (1) $11,429 Pro Rata Net Debt 7% (1) Equity 64% Senior Unsecured Notes USD 1,625 Senior Unsecured Notes 26% Senior Unsecured Notes EUR 2,927 26% 64% Mortgage Debt, pro rata USD 1,033 Mortgage Debt (pro rata) 7% Mo
Slide 21: Debt Maturity Schedule
Debt Maturity Schedule Principal at Maturity (1) 1,400 Mortgage (2) Unsecured Unsecured Unsecured Unsecured Debt Bonds (EUR) Bonds (USD) Term Loan Revolver 1,200 1,000 500 183 800 350 $MM 305 585 600 585 400 450 585 585 585 200 419 352 325 143 183 32 23 88 21 0 (1) 2020 2021 2022 2023 2024 2025 2026
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 September 30, 2020 Total Debt / Total Leverage ≤ 60% 41.6% Total Assets Secured Debt / Secured Debt Leverage ≤ 40% 8.2% Total Ass
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 6.4% (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 $1.4 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: COVID-19 Rent Collection
COVID-19 Rent Collection WPC collected 98% of rent due in the third quarter Total Rent Due 3Q20 Property Type 1%1% % % of 3Q20 rent of total ABR due and paid (2) Industrial 24% 99% Warehouse 22% 94% Office 23% 100% Retail 17% 100% Fitness, Theater and Restaurants 2% 65% Self Storage (net lease) 5% 1
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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