W. P. Carey Lifts 2026 Profit Outlook To $5.23-$5.29 A Share As Rent Growth Holds
The net lease REIT narrowed its full-year AFFO range upward and lifted the floor on investment volume, while quarterly net income was flat.
W. P. Carey, a net lease real estate investment trust, raised and narrowed its 2026 outlook for adjusted funds from operations (AFFO, a REIT profit measure) to $5.23 to $5.29 per diluted share, from $5.19 to $5.27, in third-quarter results released Tuesday. The company says the new range implies 5.8% growth at the midpoint.
Earnings up, net income flat
Third-quarter AFFO came to $1.33 per diluted share, up 6.4% from $1.25 a year earlier. Net income attributable to the company was $141.0 million, unchanged from the year-earlier quarter, with diluted earnings of $0.61 per share.
A lower gain on property sales was substantially offset by the benefit of net investment activity and lower impairment charges, the company said. Revenues, including reimbursable costs, rose 8.6% to $468.3 million from $431.3 million, as lease revenue grew on net investment activity while the sale of its self-storage operating portfolio cut operating property revenue.
The company said the guidance raise mainly reflects a more favorable outlook for potential rent loss and lower projected tax expense, partly offset by one-time rent abatements expected mainly in the fourth quarter tied to releasing activity.
Deal volume and a rate warning
Investment volume reached $1.6 billion year to date, including $181.9 million in the third quarter and $143.2 million after quarter end. The company lifted the low end of its full-year investment range by $100 million, to $1.8 billion to $2.1 billion.
CEO Jason Fox said "sharply higher interest rates have added some uncertainty to the transaction market," but he is confident full-year volume will stay well within the range and sees a path to the top half. He added that he is encouraged by the repricing the company is starting to see.
Contractual same-store rent growth was 2.6% year over year. Disposals totaled $273.2 million over the first nine months, including $27.0 million in the third quarter.
The business and the balance sheet
W. P. Carey owns commercial property, mainly single-tenant industrial, warehouse and retail, and leases it on long-term net leases, where tenants pay most operating costs. At September 30 its portfolio held 1,755 properties leased to 383 tenants, with 98.6% occupancy and a 12.0-year weighted-average lease term.
In the quarter it settled forward equity agreements for net proceeds of about $150 million; about $538 million remained available for settlement. It issued $350 million of 5.200% notes due 2036 and used the proceeds to prepay $350 million of 4.250% notes due October 2026. Total liquidity was $2.6 billion.
The quarterly dividend is $0.950 a share, or $3.80 annualized, up 4.4% from a year earlier.
The company holds its earnings call Wednesday at 11:00 a.m. Eastern.
Sources
- 8-K Filing — W. P. Carey Inc. (WPC) — SEC EDGAR
- Exhibit wpc2026q38-kerexh991.htm — W. P. Carey Inc. 8-K exhibit — SEC EDGAR
- Exhibit wpc2026q3supplementalexh992.htm — W. P. Carey Inc. 8-K exhibit — SEC EDGAR
- Exhibit investorpresentation3q26.htm — W. P. Carey Inc. 8-K exhibit — SEC EDGAR
- W. P. Carey Announces Third Quarter 2026 Financial Results — prnewswire.com
