2026 Third Quarter
Filed Oct 27, 2026W. P. Carey reported third-quarter AFFO per diluted share of $1.33, up 6.4% year over year, raised and narrowed 2026 AFFO guidance to $5.23 – $5.29 per diluted share, and raised the low end of its investment-volume outlook.
Revenue rose 8.6% and AFFO per diluted share increased 6.4% year over year, supported by net investment activity and rent escalations. The company raised AFFO guidance and increased the low end of investment-volume guidance, while reported net income attributable to W. P. Carey was unchanged year over year and quarterly AFFO per diluted share declined from $1.34 in the second quarter.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended September 30, 2026GAAP | $468.3M | – | 8.6% |
| Real Estate revenue, three months ended September 30, 2026GAAP | $467,426 | – | – |
| Lease revenues, three months ended September 30, 2026GAAP | $422.5M | – | – |
| Income from finance leases and loans receivable, three months ended September 30, 2026GAAP | $26.95M | – | – |
| Operating property revenues, three months ended September 30, 2026GAAP | $12.25M | – | – |
| Other lease-related income, three months ended September 30, 2026GAAP | $5.73M | – | – |
| Investment Management revenue, three months ended September 30, 2026GAAP | $875 | – | – |
| Other advisory income and reimbursements, three months ended September 30, 2026GAAP | $500K | – | – |
| Asset management revenue, three months ended September 30, 2026GAAP | $375K | – | – |
| Operating expenses, three months ended September 30, 2026GAAP | $209,972 | – | – |
| Depreciation and amortization, three months ended September 30, 2026GAAP | $129.1M | – | – |
| General and administrative, three months ended September 30, 2026GAAP | $25.32M | – | – |
| Reimbursable tenant costs, three months ended September 30, 2026GAAP | $17.66M | – | – |
| Property expenses, excluding reimbursable tenant costs, three months ended September 30, 2026GAAP | $12.00M | – | – |
| Stock-based compensation expense, three months ended September 30, 2026GAAP | $9.97M | – | – |
| Operating property expenses, three months ended September 30, 2026GAAP | $9.22M | – | – |
| Impairment charges — real estate, three months ended September 30, 2026GAAP | $6.13M | – | – |
| Merger and other expenses, three months ended September 30, 2026GAAP | $540K | – | – |
| Interest expense, three months ended September 30, 2026GAAP | −$80.39M | – | – |
| Other gains and (losses), three months ended September 30, 2026GAAP | $(41,566) | – | – |
| Gain on sale of real estate, net, three months ended September 30, 2026GAAP | $6.96M | – | – |
| Non-operating income, three months ended September 30, 2026GAAP | $4,724 | – | – |
| Earnings from equity method investments, three months ended September 30, 2026GAAP | $3.59M | – | – |
| Income before income taxes, three months ended September 30, 2026GAAP | $151.6M | – | – |
| Provision for income taxes, three months ended September 30, 2026GAAP | −$10.52M | – | – |
| Net income, three months ended September 30, 2026GAAP | $141.1M | – | – |
| Net income attributable to W. P. Carey, three months ended September 30, 2026GAAP | $141M | – | unchanged |
| Basic earnings per share, three months ended September 30, 2026GAAP | $0.61 | – | – |
| Diluted earnings per share, three months ended September 30, 2026GAAP | $0.61 | – | – |
| AFFO attributable to W. P. Carey, three months ended September 30, 2026non-GAAP | $308.2M | – | – |
| AFFO attributable to W. P. Carey per diluted share, three months ended September 30, 2026non-GAAP | $1.33 | – | 6.4% |
| FFO attributable to W. P. Carey, three months ended September 30, 2026non-GAAP | $269,132 | – | – |
| FFO attributable to W. P. Carey per diluted share, three months ended September 30, 2026non-GAAP | $1.16 | – | – |
| Revenue, nine months ended September 30, 2026GAAP | $1,383,874 | – | – |
| Net income attributable to W. P. Carey, nine months ended September 30, 2026GAAP | $502.6M | – | – |
| Diluted earnings per share, nine months ended September 30, 2026GAAP | $2.21 | – | – |
| AFFO attributable to W. P. Carey, nine months ended September 30, 2026non-GAAP | $902,336 | – | – |
| AFFO attributable to W. P. Carey per diluted share, nine months ended September 30, 2026non-GAAP | $3.97 | – | – |
| Contractual same-store rent growth as of September 30, 2026other | 2.6% | – | 2.6% year over year on a constant currency basis |
| Occupancy rate as of September 30, 2026other | 98.6% | – | – |
| Weighted-average lease term as of September 30, 2026other | 12.0 years | – | – |
| Cash and cash equivalents as of September 30, 2026GAAP | $143,390 | – | – |
| Debt, net, as of September 30, 2026GAAP | $8,783,517 | – | – |
| Total assets as of September 30, 2026GAAP | $18,663,428 | – | – |
| Total stockholders’ equity as of September 30, 2026GAAP | $8,764,579 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Real EstateLease revenues increased due primarily to net investment activity. Operating property revenues decreased due primarily to the sale of the Company’s self-storage operating portfolio, comprising the sale of 63 properties in 2025 and 11 during the 2026 first quarter. | $467,426 | – | – |
| Investment ManagementOther advisory income and reimbursements were $500 and asset management revenue was $375 for the three months ended September 30, 2026. | $875 | – | – |
2026 full year outlook
- NoteAFFO per diluted share: $5.23 – $5.29
- NoteInvestment volume: $1.8 – $2.1 billion
- NoteDisposition volume: $350 – $450 million
- NoteGeneral and administrative expenses: $104 – $106 million
- NoteProperty expenses, excluding reimbursable tenant costs: $54 – $57 million
- NoteTax expense (on an AFFO basis): $40 – $43 million
Capital returns
- Third quarter cash dividend of $0.950 per share, equivalent to an annualized dividend rate of $3.80 per share.
- The dividend represented a 4.4% increase compared to the 2025 third quarter.
- The dividend was paid on October 15, 2026 to shareholders of record as of September 30, 2026.
- During the 2026 third quarter, the Company settled a portion of its outstanding forward sale agreements, issuing 2,301,613 shares of common stock for net proceeds totaling approximately $150 million.
What drove it
- Year-to-date investment volume was $1.6 billion, including $181.9 million during the 2026 third quarter and $143.2 million subsequent to quarter end.
- Accretive net investment activity and rent escalations primarily drove the year-over-year increase in AFFO per diluted share.
- The portfolio consisted of 1,755 properties comprising 189 million square feet leased to 383 tenants as of September 30, 2026.
- The Company completed dispositions of 33 properties for gross proceeds totaling $273.2 million during the first nine months of 2026, including five properties for gross proceeds totaling $27.0 million during the third quarter.
- The AFFO guidance increase primarily reflects a more favorable outlook for potential rent loss and lower projected tax expense.
Concerns
- Operating property revenues decreased due primarily to the sale of the self-storage operating portfolio.
- Third-quarter gain on sale of real estate, net was $6,960, compared with $44,401 in the 2025 third quarter.
- Interest expense was $(80,388), compared with $(75,226) in the 2025 third quarter.
- Other gains and (losses) were $(41,566), primarily comprising a mark-to-market unrealized loss for the investment in shares of Lineage of $35.8 million and a non-cash allowance for credit losses of $7.5 million.
- One-time rent abatements associated with releasing activity are expected mainly in the fourth quarter.
- Management cited sharply higher interest rates as adding uncertainty to the transaction market.
What to watch
- Execution against full-year investment-volume guidance of $1.8 – $2.1 billion.
- Completion of three capital investments and commitments totaling $95.2 million scheduled for the 2026 fourth quarter.
- Potential impact of one-time rent abatements expected mainly in the fourth quarter associated with releasing activity.
- Use of approximately $538 million of anticipated net proceeds available under forward sale agreements.
- Disposition activity against full-year guidance of $350 – $450 million.
Balance sheet and cash flow
- Total liquidity was $2.6 billion as of September 30, 2026, primarily comprising $1.9 billion of available capacity under its Senior Unsecured Credit Facility, net of amounts reserved for standby letters of credit, in addition to cash and cash equivalents and available net proceeds under unsettled forward equity sale agreements.
- As of September 30, 2026, 7,612,418 shares remained available for settlement under forward sale agreements, representing anticipated net proceeds totaling approximately $538 million.
- The Company completed an underwritten public offering of $350 million aggregate principal amount of 5.200% Senior Notes due September 15, 2036 on July 2, 2026.
- On July 29, 2026, the Company used offering proceeds to prepay $350 million of 4.250% Senior Unsecured Notes due October 2026, with no associated prepayment costs.
- Net investments in real estate were $16,210,721 as of September 30, 2026, compared with $15,469,174 as of December 31, 2025.
Analysis
Third-quarter revenue was $468.3 million, up 8.6% from $431.3 million in the 2025 third quarter. Real Estate revenue was $467,426, led by lease revenues of $422,499. The company attributed the lease-revenue increase primarily to net investment activity. Operating property revenues were $12,247 versus $26,771 in the prior-year quarter, reflecting the sale of the self-storage operating portfolio.
GAAP net income attributable to W. P. Carey was $141.0 million, unchanged from the 2025 third quarter, while diluted earnings per share were $0.61 versus $0.64. Lower gain on sale of real estate was substantially offset by the accretive impact of net investment activity and lower impairment charges. AFFO attributable to W. P. Carey was $308.2 million and AFFO per diluted share was $1.33, up 6.4% from $1.25, primarily reflecting accretive net investment activity and rent escalations, partly offset by the settlement of forward equity.
Portfolio activity remained substantial. The company completed $1.6 billion of investments year to date, including $181.9 million in the third quarter and $143.2 million subsequent to quarter end. Contractual same-store rent growth was 2.6% year over year on a constant currency basis. The net lease portfolio had 1,755 properties, 189 million square feet, 383 tenants, a weighted-average lease term of 12.0 years, and 98.6% occupancy as of September 30, 2026.
The company increased its quarterly cash dividend to $0.950 per share, equivalent to an annualized dividend rate of $3.80 per share. It also settled forward sale agreements for net proceeds totaling approximately $150 million and had approximately $538 million of equity subject to forward sale agreements available for settlement at quarter end. Debt refinancing included the issuance of $350 million of 5.200% Senior Notes due 2036 and prepayment of $350 million of 4.250% Senior Unsecured Notes due October 2026.
Management raised and narrowed full-year AFFO guidance to $5.23 – $5.29 per diluted share from $5.19 – $5.27, citing a more favorable outlook for potential rent loss and lower projected tax expense. The company raised the lower bound of investment-volume guidance to $1.8 billion while retaining the $2.1 billion upper bound. It reduced the upper end of disposition-volume guidance to $450 million and flagged one-time rent abatements expected mainly in the fourth quarter associated with releasing activity.
Management, verbatim
We’ve executed at a high level over the first nine months, with investment activity near record levels, strong portfolio performance and best-in-class rent growth all supporting our expectation that AFFO per share growth will approach 6% this year.
Jason Fox, Chief Executive Officer
Even though sharply higher interest rates have added some uncertainty to the transaction market, we’re confident full-year investment volume will remain well within our guidance range. We’re raising the bottom end of that range and continue to see a path to the top half.
Jason Fox, Chief Executive Officer
As we look ahead to next year, we’re encouraged by the repricing we’re starting to see. If that trend continues, we would expect to see increasingly attractive opportunities to put the substantial capital we’ve raised to work.
Jason Fox, Chief Executive Officer
Not in the filing
stated, not guessed- Cash flow from operating activities was not reported in the filing text.
- Free cash flow was not reported in the filing text.
- Share repurchases were not reported in the filing text.
- Gross margin was not reported in the filing text.
- Forward revenue, gross-margin, operating-expense, and tax-rate guidance was not provided.
- No previous-release outlook section was provided for actual-versus-prior-guidance comparisons.
- The filing does not provide GAAP net-income guidance.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.