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Here are a few analogies to describe W.P. Carey:

• W.P. Carey is like American Tower (AMT), but for diversified industrial, warehouse, and retail buildings instead of cell towers. They own critical real estate and lease it out for stable, long-term income.
• Imagine McDonald's as a pure real estate company that owns and leases out properties for various businesses (industrial, warehouse, retail) instead of just restaurants. That's W.P. Carey.
• W.P. Carey is like a utility company such as Con Edison (ED), but for essential commercial properties instead of power and gas. It provides critical real estate infrastructure to businesses for stable, predictable rent.

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• Real Estate Acquisition and Investment: W.P. Carey acquires and invests in a diversified portfolio of commercial real estate properties across various sectors and geographies.
• Net Lease Operations: The company leases its acquired properties to single tenants under long-term net lease agreements, where tenants are responsible for most operating expenses.
• Real Estate Portfolio Management: W.P. Carey manages its extensive global portfolio of properties, optimizing asset performance and tenant relationships to generate stable income.

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W.P. Carey (WPC) Major Customers

• U-Haul International (Parent company: AMERCO, symbol: UHAL) - (approx. 2.8% of ABR)
• Hellweg (Private company) - (approx. 2.5% of ABR)
• Grupo Traxión (Public company; primarily listed on the Mexican Stock Exchange; no common US symbol) - (approx. 2.0% of ABR)
• Advance Auto Parts (Symbol: AAP) - (approx. 1.9% of ABR)
• Svenska Handelsbanken (Public company; primarily listed on Nasdaq Stockholm; no common US symbol) - (approx. 1.8% of ABR)
• Aramark (Symbol: ARMK) - (approx. 1.8% of ABR)
• Macy's (Symbol: M) - (approx. 1.7% of ABR)

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Jason E. Fox, Chief Executive Officer

Jason E. Fox serves as Chief Executive Officer, President, and Board Member of W. P. Carey, having been appointed CEO in January 2018. During his tenure, he has overseen over $10 billion of acquisitions. He also serves as Chief Executive Officer of Net Lease Office Properties (NYSE: NLOP) since October 2022. Before joining W. P. Carey in 2002, Mr. Fox worked at the Spectrem Group, a consulting and M&A advisory firm, and taught mathematics and physics at The Hotchkiss School.

Toni Sanzone, Chief Financial Officer

Toni Sanzone was appointed Chief Financial Officer in 2017. In this role, she is responsible for overseeing vital financial and risk mitigation functions across the U.S. and Europe, including accounting, financial reporting, information technology, internal audit, tax, and treasury. Ms. Sanzone has also served as Chief Financial Officer of Net Lease Office Properties (NYSE: NLOP) since September 2023 and previously as CFO of CPA:18 – Global until its merger with W. P. Carey in August 2022. Prior to joining W. P. Carey in 2013, she served as Corporate Controller at iStar Inc., a publicly traded REIT that was acquired by Safehold in 2023. She also held various accounting and financial reporting roles at Bed Bath & Beyond Inc. and worked in assurance and advisory services at Deloitte LLP.

John D. Miller, Chief Investment Officer

John D. Miller joined W. P. Carey as Chief Investment Officer in 2004. He is a founder and former President of StarVest Partners, a private equity/venture capital firm. Mr. Miller also served as the former President of Rothschild Ventures Inc., the private investments unit of Rothschild North America, and was Co-Chair of the Rothschild Recovery Fund L.P.

Gino M. Sabatini, Head of Investments

Gino M. Sabatini was appointed Head of Investments of W. P. Carey in 2016, where he oversees the sourcing, negotiating, and structuring of investments in North America and Europe. He joined W. P. Carey in 2000 and previously held positions including Head of U.S. Net Lease Investments and Managing Director. Mr. Sabatini holds a B.Sc. in Mechanical Engineering, a B.Sc. in Economics from the Wharton School, and an M.B.A. from Harvard Business School.

Susan C. Hyde, Chief Administrative Officer, Chief Ethics Officer & Corporate Secretary

Susan C. Hyde is a Managing Director and serves as Chief Administrative Officer, Chief Ethics Officer, and Corporate Secretary at W. P. Carey. She joined the company in 1990 and was appointed Chief Administrative Officer in 2017, having previously served as Chief Marketing Officer. In her current role, Ms. Hyde oversees departments such as Investor Relations Operations, Integrated Communications, Human Resources, Legal, and Office Management.

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Key Risks to W.P. Carey (WPC)

• Interest Rate Fluctuations and Debt Management: W.P. Carey, as a Real Estate Investment Trust (REIT), is susceptible to potential interest rate hikes, which can negatively impact REIT valuations and increase borrowing costs. The company carries a moderate debt-to-equity ratio of 1.07 and has a low interest coverage ratio of 2.96, which could present challenges for debt servicing, particularly given its recent issuance of new debt.
• Dividend Sustainability and High Payout Ratio: W.P. Carey has a notably high dividend payout ratio, reported at 1.96 and also as high as 220.61%, which may not be sustainable over the long term. Although the company has recently increased its dividend, it did reduce its quarterly dividend in December 2023 as part of a strategic initiative to divest office assets and achieve a lower payout ratio, highlighting past concerns regarding its dividend's sustainability.
• Liquidity Constraints and Financial Health: The company exhibits potential liquidity constraints, with both its current ratio and quick ratio standing at 0.34. Furthermore, W.P. Carey's Altman Z-Score of 0.78 places the company in a "distress zone," which is considered a warning sign regarding its overall financial health.

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W.P. Carey Inc. (WPC) operates primarily in the diversified net lease real estate sector, specializing in the acquisition of operationally critical, single-tenant properties, and offering services such as sale-leasebacks and build-to-suits. The company's portfolio is diversified across North America and Europe, focusing on industrial, warehouse, and retail properties.

The addressable markets for W.P. Carey's main products and services can be identified as follows:

• Global Lease Real Estate Market: The global lease real estate market was valued at approximately US$1,144.7 billion in 2024, with an estimated compound annual growth rate (CAGR) of 5.6% from 2024 to 2030.
• U.S. Single-Tenant Net Lease (STNL) Market:
  • The total U.S. single-tenant net lease investment volume for the full year 2024 was $43.7 billion.
  • In the first half of 2025, the U.S. single-tenant net-lease retail sector alone recorded $5.7 billion in sales volume.
  • Year-to-date through the third quarter of 2025, single-tenant investment sales in the U.S. totaled $33.3 billion.
• U.S. Sale-Leaseback Market: The total U.S. sale-leaseback dollar volume reached a record $31.4 billion in 2022. In 2024, approximately 600 sale-leaseback deals were completed, with projections for 2025 suggesting an increase that could exceed the average of roughly 700 transactions seen in prior years.

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W.P. Carey Inc. (WPC) is expected to drive future revenue growth over the next two to three years through several key strategies:

1. Continued Investment Activity: W.P. Carey has demonstrated a strong focus on expanding its real estate portfolio through strategic acquisitions. The company reported record quarterly investment volume of over $840 million in Q4 2024, contributing to approximately $1.6 billion in total investment volume for the year. For 2025, W.P. Carey has raised its investment volume guidance to a range of $1.8 billion to $2.1 billion. These new investments are expected to contribute significantly to lease revenues as new properties are added to the portfolio, often at attractive initial cap rates in the mid-7% range.

2. Contractual Rent Escalations: A significant portion of W.P. Carey's revenue growth is derived from built-in rent escalations within its long-term net leases. The company reported contractual same-store rent growth of 2.6% year-over-year in Q4 2024 and anticipates it will remain in the mid-2% range for Q1 2025, moderating to an average in the low-to-mid 2%s for the full year 2025. For the full year 2025, contractual same-store rent growth is expected to average around 2.5%, with projections for it to remain strong and potentially surpass 2.5% in 2026.

3. Strategic Dispositions and Reinvestment: W.P. Carey actively manages its portfolio by disposing of non-core and lower-yielding assets, such as office properties and self-storage operating properties, and reinvesting the proceeds into higher-yielding opportunities. This strategy aims to generate a positive spread between the average cap rates on dispositions and new investments, optimizing the portfolio and enhancing overall revenue growth. The company's disposition volume for the full year 2024 reached $1.2 billion, driven primarily by office property sales. For 2025, expected disposition volume is between $1.3 billion and $1.5 billion.

4. Positive Re-leasing Spreads: The company benefits from positive re-leasing spreads, indicating its ability to secure higher rents upon lease renewals. In Q4 2024, W.P. Carey's leasing activity, which included 11 renewals or extensions, resulted in recapturing 107% of prior rents overall, with positive re-leasing spreads noted on warehouse and retail properties. This demonstrates the company's ability to drive organic growth through favorable lease negotiations.

5. Diversification Across Geographies and Property Types: W.P. Carey's highly diversified portfolio, spanning industrial, warehouse, and retail properties in the U.S. and Europe, provides stability and diverse avenues for growth. This diversification helps mitigate risks associated with any single market or property type and allows the company to capitalize on attractive investment opportunities across different regions, contributing to consistent revenue expansion.

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