W. P. Carey Inc. Reit · NYSE:WPC
W. P. Carey Inc. Reit — W. P. Carey — Investor Presentation (February 2023)
27 slides from W. P. Carey Inc. Reit's investor presentation, Feb 10, 2023
Slide 1: 4Q22 W. P. Carey Inc. Investor Presentation
50 Years of Investing for the Long Run® 4Q22 W. P. Carey Inc. Investor Presentation Exhibit 99.3
Slide 2: Table of Contents
Table of Contents Overview Real Estate Portfolio Balance Sheet ESG 3 7 18 23 Unless otherwise noted, all data in this presentation is as of December 31, 2022. Amounts may not sum to totals due to rounding.
Slide 3: Overview
WPL CAREY Overview }
Slide 4: Company Highlights
4 One of the largest owners of net lease real estate and among the top 20 REITs in the MSCI US REIT Index Highly diversified portfolio by geography, tenant, property type and tenant industry Successful track record of investing and operating through multiple economic cycles since 1973 led by an expe
Slide 5: Investment Strategy: Transactions Evaluated on Four Key Factors
5 Investment Strategy Transactions Evaluated on Four Key Factors Creditworthiness of Tenant • Industry drivers and trends • Competitor analysis • Company history • Financial wherewithal Criticality of Asset • Key distribution facility or profitable manufacturing plant • Critical R&D or data-center •
Slide 6: Proactive Asset Management
6 • Asset management offices in New York and Amsterdam • W. P. Carey has proven experience repositioning assets through re-leasing, restructuring and strategic disposition • Generates value creation opportunities within our existing portfolio • Five-point internal rating scale used to assess and mon
Slide 7: Real Estate Portfolio
7 Real Estate Portfolio
Slide 8: Large Diversified Portfolio
8 1. Portfolio information reflects pro rata ownership of real estate assets (excluding operating properties) as of December 31, 2022. 2. Other includes leases with percentage rent (i.e., participation in the gross revenues of the tenant above a stated level) and other increases, as well as leases w
Slide 9: Property and Industry Diversification
9 27% 24% 17% 17% 4% 11% 1. Portfolio information reflects pro rata ownership of real estate assets (excluding operating properties) as of December 31, 2022. 2. Includes automotive dealerships. 3. Includes hotel (net lease), education facility, laboratory, specialty, fitness facility, research and d
Slide 10: Top Ten Net Lease Tenants
101. Portfolio information reflects pro rata ownership of real estate assets (excluding operating properties) as of December 31, 2022. 2. ABR for this tenant includes $16.1 million from a lease that expired in January 2023. Upon lease expiration, these properties were converted from net lease proper
Slide 11: Geographic Diversification
11 United States, 63%, $875MM Europe, 34%, $471MM Other (2), 3%, $35MM 1. Portfolio information reflects pro rata ownership of real estate assets (excluding operating properties) as of December 31, 2022. 2. Includes Canada (1.2%), Mexico (0.8%), Mauritius (0.4%) and Japan (0.2%). W. P. Carey has bee
Slide 12: Internal Growth from Contractual Rent Increases
12 Uncapped CPI, 37% Fixed, 40% Capped CPI, 18% Other, 4% (2) 55% CPI-linked None, 1.0% 1. Portfolio information reflects pro rata ownership of real estate assets (excluding operating properties) as of December 31, 2022. 2. Represents leases with percentage rent (i.e., participation in the gross rev
Slide 13: Same Store ABR Growth
13 1.8% 1.9% 1.6% 1.5% 1.6% 1.5% 1.6% 1.8% 2.7% 3.0% 3.4% 3.4% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% 1.8% 2.0% 2.2% 2.4% 2.6% 2.8% 3.0% 3.2% 3.4% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1. Contractual same store portfolio includes leases that were continuously in place dur
Slide 14: Lease Expirations and Average Lease Term
14 3.9% 6.6% 4.4% 4.7% 6.0% 5.0% 5.0% 5.3% 5.1% 3.2% 5.9% 44.9% 0% 10% 20% 30% 40% 50% 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Thereafter(3) 1. Portfolio information reflects pro rata ownership of real estate assets (excluding operating properties) as of December 31, 2022. 2. Assumes
Slide 15: Historical Occupancy
15 1. Historical data through 2021 includes W. P. Carey and the following CPA REITs: Corporate Property Associates 12 Incorporated, Corporate Property Associates 14 Incorporated, Corporate Property Associates 15 Incorporated, Corporate Property Associates 16 – Global Incorporated, Corporate Property
Slide 16: Recent Acquisitions – Case Studies
16 Recent investment activity has been focused primarily on mission critical industrial and warehouse properties and essential retail Recent Acquisitions – Case Studies Recent Acquisitions Purchase Price: $122 million Transaction Type: Sale-leaseback Facility Type: Retail (Grocery) Location: Various
Slide 17: Capital Investments – Case Studies
17 Capital investments have become a more meaningful part of our investment activity and allow us to pursue follow-on opportunities with existing tenants Capital Investments – Case Studies Recent Capital Investments Investment: $10 million renovation* Facility Type: Industrial Location: Conestoga, P
Slide 18: Balance Sheet
18 Balance Sheet
Slide 19: Balance Sheet Summary
19 1. Amounts may not sum to totals due to rounding. 2. Based on a closing stock price of $78.15 on December 31, 2022 and 210,620,949 common shares outstanding as of December 31, 2022. 3. Pro rata net debt to enterprise value and pro rata net debt to Adjusted EBITDA are based on pro rata debt less c
Slide 20: Debt Maturity Schedule
20 Principal at Maturity (1) Debt Maturity Schedule % of Total (5) 5.4% 16.2% 20.8% 12.5% 6.9% 6.6% 6.0% 7.0% 6.3% 7.0% 5.3% Interest Rate (5) 3.9% 3.5% 3.8% 3.3% 2.2% 1.4% 3.7% 1.0% 2.4% 2.9% 2.3% $M M 1. Reflects amount due at maturity, excluding unamortized discount and unamortized deferred finan
Slide 21: Senior Unsecured Notes Covenants
21 Metric Covenant December 31, 2022 Total Leverage Total Debt / Total Assets ≤ 60% 39.6% Secured Debt Leverage Secured Debt / Total Assets ≤ 40% 5.7% Fixed Charge Coverage Consolidated EBITDA / Annual Debt Service Charge ≥ 1.5x 5.5x Maintenance of Unencumbered Asset Value Unencumbered Assets / Tota
Slide 22: History of Consistent Dividend Growth
22 $1.65 $1.67 $1.69 $1.70 $1.72 $1.73 $1.76 $1.79 $1.82 $1.88 $1.96 $2.00 $2.03 $2.19 $2.44 $3.39 $3.69 $3.83 $3.93 $4.01 $4.09 $4.14 $4.17 $4.21 $4.24 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2
Slide 23: ESG
WPL CAREY ESG
Slide 24: ESG Strategy
24 ESG Strategy Environmental Social Governance • Evaluate and target new sustainability-linked investment opportunities, with the goal of growing ABR and portfolio prominence from Green Buildings(1) • Proactively manage our portfolio’s major climate change risks by collecting tenant data and workin
Slide 25: Investment Case Study: Jaguar Land Rover, Solihull
25 Investment Case Study In 2021, we acquired a “BREEAM® Very Good” certified, Class-A logistics facility leased to Jaguar Land Rover Ltd., the U.K.’s largest premium automotive manufacturer Jaguar Land Rover Solihull, United Kingdom 1.1-million-square-foot, newly constructed facility adjacent to
Slide 26: Forward-Looking Statements
26 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 “Exchange Act”), both as amended by the Private Securities Liti
Slide 27: EBITDA and Adjusted EBITDA
27 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 structure from our operating results and (ii) it is helpful when comparing our opera