From The Motley Fool · Motley Fool Transcribing · · 2m
W. P. Carey Q3 2.026 Earnings Results
W. P. Carey reports 6.4% year-over-year AFFO growth with $1.33 per share as interest rates rise.
In brief
W. P. Carey reports 6.4% year-over-year AFFO growth with $1.33 per share as interest rates rise. W. P. Carey's Q3 2026 earnings show 6.4% AFFO growth to $1.33 per share despite higher interest rates. Originally reported by The Motley Fool.
Q3 Earnings Results
W. P. Carey reported third-quarter results with AFFO per diluted share at $1.33, a 6.4% year-over-year increase.
Full-Year AFFO Guidance
Full-year AFFO guidance increased to $5.23 to $5.29 per share, representing 5.8% annual growth.
Investment Volume
Year-to-date investment volume reached $1.6 billion at a weighted average initial cash cap rate of 7.5%.
Contractual Rent Growth
Contractual same-store rent growth increased 2.6% year over year, tied to inflation and CPI.
Portfolio Occupancy
Portfolio occupancy rose to 98.6% as of September 30, a 10 basis point increase from the prior quarter.
Forward Equity
Forward equity available stands at $540 million from approximately 7.6 million shares raised at $73 per share.
Net Debt to EBITDA
Net debt to adjusted EBITDA ratio is 5.5, or 5.2 including unsettled forward equity.
Liquidity Position
Total liquidity stands at $2.6 billion, including $2 billion credit facility and cash on hand.
Quarterly Dividend
Quarterly dividend increased to $0.95 per share, a 4.4% year-over-year rise with 71% payout ratio.
Full-Year Disposition Guidance
Full-year disposition guidance narrowed to $350 million to $450 million from previous $350 million to $550 million range.
Rent Abatement Impact
Rent abatement impact expected to be $0.02 to $0.03 per share in fourth quarter due to Nord Anglia lease extension.
Potential Rent Loss
Potential rent loss estimate reduced to $3 million to $5 million from $7 million to $10 million after successful collections.
Active Capital Projects
Active capital projects total $325 million across 11 projects, with $95 million scheduled for fourth quarter.
Re-leasing Spreads
Re-leasing spreads recaptured 105% of prior rents, adding nine years of incremental lease term on 1% of annualized base rent.
Weighted Average Interest Rate
Weighted average interest rate on total debt is 3.3%, reflecting bond refinancings earlier in the year.
CEO Outlook
CEO Jason Fox stated the company is well positioned to continue investing if attractive opportunities remain available.
The takeaway
W. P. Carey's Q3 2026 earnings show 6.4% AFFO growth to $1.33 per share despite higher interest rates.
