W. P. Carey raises 2026 AFFO guidance to $5.19–$5.27/share on stronger investment volume

W. P. Carey disclosed unaudited supplemental financial information for the quarter ended June 30, 2026. This disclosure is made under Regulation FD to ensure fair public access to material information. The specific financial metrics are contained in Exhibit 99.2, which is not included in this 8-K body.

The company published its second quarter 2026 investor presentation on its website and filed it as Exhibit 99.3. This presentation typically contains management's discussion of quarterly results, portfolio updates, and strategic initiatives. Investors can access the full presentation on the company's website or through the SEC filing.

W. P. Carey reported Q2 2026 net income of $185.4 million ($0.82 per diluted share) and AFFO of $305.4 million ($1.34 per diluted share). AFFO per share increased 4.7% year-over-year from $1.28, driven by accretive net investment activity, partially offset by higher interest expense from debt refinancings and forward equity settlement.

The company raised and narrowed its full-year 2026 AFFO guidance to $5.19–$5.27 per diluted share (from $5.16–$5.26), implying 5.2% year-over-year growth at the midpoint. The increase reflects higher expected lease revenues from increased investment volume and a more favorable outlook for potential rent loss, together with lower projected expenses, partially offset by the impact of settling forward equity. Investment volume guidance was raised to $1.7–$2.1 billion from $1.5–$2.0 billion.

W. P. Carey completed $1.3 billion of investments year-to-date through Q2 2026, including $706.5 million in Q2. The company disposed of 28 properties for gross proceeds of $246.2 million in the first half, including nine properties for $83.7 million in Q2. The company has $132.7 million of capital investments and commitments scheduled for completion in the second half of 2026.

W. P. Carey reported second quarter 2026 net income of $185.4 million ($0.82 per diluted share) and adjusted funds from operations (AFFO) of $305.4 million ($1.34 per diluted share). AFFO is a non-GAAP measure used by REITs to assess operating performance excluding non-cash items and certain one-time charges.

The company declared a quarterly dividend of $0.940 per share for Q2 2026, representing an annualized rate of $3.76 per share and a 5.3% yield based on the quarter-end share price of $71.50. The dividend payout ratio for the six months ended June 30, 2026 was 70.6% of AFFO.

As of June 30, 2026, W. P. Carey had net debt of $8.8 billion, representing a net debt to adjusted EBITDA ratio of 5.5x (or 5.1x including unsettled forward equity of $690.7 million from 9.9 million shares). The company maintained investment-grade credit ratings of Baa1 (Moody's) and BBB+ (S&P), both with stable outlooks.

During Q2 2026, W. P. Carey completed $706.5 million in new investments and disposed of $83.7 million in properties. The company's real estate portfolio comprised 1,748 net-leased properties with annualized base rent (ABR) of $1.64 billion and a 98.5% occupancy rate, with a weighted-average lease term of 12.2 years.

The presentation discloses W. P. Carey's net-lease portfolio as of June 30, 2026, comprising 1,748 properties across 384 tenants with $1.64 billion in annualized base rent. The portfolio maintains 98.5% occupancy with a weighted average lease term of 12.2 years and low tenant concentration (top 10 at 18.1% of ABR). Nearly half of the rent is CPI-linked, providing inflation protection.

W. P. Carey completed three capital investment projects totaling approximately $49 million during Q1-Q2 2026, including build-to-suits and expansions for existing tenants. These projects generate long-term leases (15-20 years) and demonstrate the company's ability to create value through follow-on opportunities with existing tenants.

The company raised $392 million through its ATM program in Q2 2026 and issued €1 billion in Eurobonds in February 2026, plus $350 million in U.S. bonds in July 2026. Net debt to adjusted EBITDA stood at 5.5x (5.1x including unsettled forward equity), with 95% fixed-rate debt and a weighted average interest rate of 3.2%. The balance sheet maintains investment-grade ratings (Baa1/BBB+) and $2.7 billion in liquidity.

The presentation reports 2.6% contractual same-store ABR growth for Q2 2026, reflecting the impact of built-in rent escalations across the portfolio. This organic growth metric demonstrates the portfolio's ability to generate internal revenue growth through contractual lease terms.