WP Carey Q2 revenue beats estimates on higher leases; AFFO outlook raised

Overview

• U.S. net lease REIT's Q2 revenue rose 7% yr/yr, beating analyst expectations

• Q2 AFFO per share rose 4.7% yr/yr; full-year AFFO guidance raised

• Net income surged on mark-to-market gains and higher investment activity

Outlook

• WP Carey raises 2026 AFFO guidance to $5.19–$5.27 per diluted share

• Company increases 2026 investment volume assumption to $1.7–$2.1 bln

• WP Carey expects improved outlook for potential rent loss and benefits from CPI-linked leases

Result Drivers

• NET INVESTMENT ACTIVITY - Co said higher lease revenues and income from finance leases and loans receivable were driven by net investment activity

• MARK-TO-MARKET GAINS - Net income rose mainly due to a $41.6 mln mark-to-market gain on shares of Lineage and higher gains from remeasurement of foreign debt

• SAME-STORE RENT GROWTH - Co reported contractual same-store rent growth of 2.6% yr/yr on a constant currency basis

Company press release: ID:nPn3VBYkMa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 8 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the diversified reits peer group is "buy."

• Wall Street's median 12-month price target for W.p. Carey Inc is $78.00, about 2.3% above its July 27 closing price of $76.21

• The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 25 three months ago

Reuters Recommended Reads

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)