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• Fourth Quarter Investment Volume: Over $840 million, bringing the annual total to approximately $1.6 billion.

• Initial Cash Cap Rates: Mid to low 7% for Q4 investments, averaging 7.5% for the year.

• Average Yields on New Investments: Above 9% for 2024.

• 2024 AFFO Per Share: $4.70, with Q4 AFFO per share at $1.21.

• Contractual Same-Store Rent Growth: 2.6% year-over-year for Q4.

• Comprehensive Same-Store Rent Growth: 2.5% year-over-year for Q4.

• 2025 AFFO Guidance: Between $4.82 and $4.92 per share, implying 3.6% growth at the midpoint.

• 2024 Disposition Volume: $1.2 billion, including $119 million from Q4.

• 2024 Operating Property NOI: $17.6 million for Q4.

• 2024 Nonoperating Income: $52.2 million for the full year.

• 2024 Debt Capital Raised: Approximately $1.7 billion at a weighted average coupon of 4.3%.

• 2024 Weighted Average Interest Rate on Debt: 3.2%.

• 2024 Total Liquidity: Approximately $2.6 billion at year-end.

• Debt to Gross Assets: 41.6% at the end of 2024.

• Net Debt to EBITDA: 5.5 times at the end of 2024.

• Warning! GuruFocus has detected 6 Warning Signs with WPC.

Release Date: February 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• W.P. Carey Inc (NYSE:WPC) successfully exited the office sector, establishing a new baseline for AFFO and setting the foundation for future growth.

• The company closed a record quarterly investment volume of over $840 million in Q4, reaching the top half of its investment volume guidance range for the year.

• W.P. Carey Inc (NYSE:WPC) achieved attractive rent bump structures, with average yields over the life of leases on new investments remaining above 9% for 2024.

• The company has a strong balance sheet and access to efficiently priced debt capital, enhancing its ability to fund deals accretively.

• W.P. Carey Inc (NYSE:WPC) expects AFFO growth in the mid-3% range for 2025, supporting a total return of around 10% when combined with its dividend yield of over 6%.

Negative Points

• The potential for larger scale M&A in 2025 may create uncertainties, impacting deal activity and widening bid-ask spreads.

• The company faces uncertainties related to interest rates, inflation, and potential impacts of the new administration, which could affect investment volume and tenant credit.

• W.P. Carey Inc (NYSE:WPC) has adopted a cautious approach to its initial guidance on investment volume due to limited visibility and uncertainty in the transaction environment.

• The company anticipates potential rent loss from tenant credit events, with an estimated $15 million to $20 million included in its 2025 AFFO guidance.

• W.P. Carey Inc (NYSE:WPC) faces operational headwinds with certain tenants, such as Hellweg, which is executing a turnaround plan amidst a slowdown in German consumer spending.