Segment Reporting

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

We evaluate our results from operations by our two major business segments: Real Estate and Investment Management (Note 1). The following tables present a summary of comparative results and assets for these business segments (in thousands):

Real Estate

	Years Ended December 31,
	2021		2020		2019
Revenues
Lease revenues	$	1,177,438	$	1,080,623	$	987,984
Income from direct financing leases and loans receivable	67,555		74,893		105,112
Lease termination income and other	53,655		11,082		29,547
Operating property revenues (a)	13,478		11,399		50,220
	1,312,126		1,177,997		1,172,863
Operating Expenses
Depreciation and amortization (b)	475,989		441,948		443,300
General and administrative (b)	81,888		70,127		56,796
Reimbursable tenant costs	62,417		56,409		55,576
Property expenses, excluding reimbursable tenant costs	47,898		44,067		39,545
Stock-based compensation expense (b)	24,881		15,247		13,248
Impairment charges	24,246		35,830		32,539
Operating property expenses	9,848		9,901		38,015
Merger and other expenses	(4,597)		(937)		101
	722,570		672,592		679,120
Other Income and Expenses
Interest expense	(196,831)		(210,087)		(233,325)
Gain on sale of real estate, net	40,425		109,370		18,143
(Losses) earnings from equity method investments in real estate	(19,649)		(9,017)		2,361
Non-operating income	13,778		8,970		20,478
Other gains and (losses)	(13,676)		37,104		9,773
Loss on change in control of interests	—		—		(8,416)
	(175,953)		(63,660)		(190,986)
Income before income taxes	413,603		441,745		302,757
(Provision for) benefit from income taxes	(28,703)		18,498		(30,802)
Net Income from Real Estate	384,900		460,243		271,955
Net (income) loss attributable to noncontrolling interests	(134)		(731)		110
Net Income from Real Estate Attributable to W. P. Carey	$	384,766	$	459,512	$	272,065

Investment Management

	Years Ended December 31,
	2021		2020		2019
Revenues
Asset management revenue	$	15,363	$	22,467	$	43,356
Reimbursable costs from affiliates	4,035		8,855		16,547
	19,398		31,322		59,903
Operating Expenses
Reimbursable costs from affiliates	4,035		8,855		16,547
Merger and other expenses	51		1,184		—
General and administrative (b)	—		5,823		18,497
Subadvisor fees	—		1,469		7,579
Depreciation and amortization (b)	—		987		3,835
Stock-based compensation expense (b)	—		691		5,539
	4,086		19,009		51,997
Other Income and Expenses
Earnings (losses) from equity method investments in the Managed Programs	8,820		(9,540)		20,868
Other gains and (losses)	791		61		(849)
Non-operating income	82		617		2,073
	9,693		(8,862)		22,092
Income before income taxes	25,005		3,451		29,998
Benefit from income taxes	217		2,261		4,591
Net Income from Investment Management	25,222		5,712		34,589
Net income attributable to noncontrolling interests	—		(9,865)		(1,411)
Net Income (Loss) from Investment Management Attributable to W. P. Carey	$	25,222	$	(4,153)	$	33,178

Total Company

	Years Ended December 31,
	2021		2020		2019
Revenues	$	1,331,524	$	1,209,319	$	1,232,766
Operating expenses	726,656		691,601		731,117
Other income and expenses	(166,260)		(72,522)		(168,894)
(Provision for) benefit from income taxes	(28,486)		20,759		(26,211)
Net income attributable to noncontrolling interests	(134)		(10,596)		(1,301)
Net income attributable to W. P. Carey	$	409,988	$	455,359	$	305,243

	Total Assets at December 31,
	2021		2020
Real Estate	$	15,344,703	$	14,582,015
Investment Management	135,927		125,621
Total Company	$	15,480,630	$	14,707,636

__________

(a)Operating property revenues from our hotels include (i) $7.2 million, $4.0 million, and $15.0 million for the years ended December 31, 2021, 2020, and 2019, respectively, generated from a hotel in Bloomington, Minnesota (revenues reflect the impact of the COVID-19 pandemic on the hotel’s operations), and (ii) $1.9 million and $14.4 million for the years ended December 31, 2020 and 2019, respectively, generated from a hotel in Miami, Florida, which was sold in January 2020 (Note 15).

(b)Beginning with the second quarter of 2020, general and administrative expenses attributed to our Investment Management segment are comprised of the incremental costs of providing services to the Managed Programs, which are fully reimbursed by those funds (resulting in no net expense for us). All other general and administrative expenses are attributed to our Real Estate segment. Previously, general and administrative expenses were allocated based on time incurred by our personnel for the Real Estate and Investment Management segments. In addition, beginning with the second quarter of 2020, stock-based compensation expense and corporate depreciation and amortization expense are fully recognized within our Real Estate segment. In light of the termination of the advisory agreements with CWI 1 and CWI 2 in connection with the WLT management internalization (Note 3), we now view essentially all assets, liabilities, and operational expenses as part of our Real Estate segment, other than incremental activities that are expected to wind down as we manage CPA:18 – Global and CESH through the end of their respective life cycles (Note 2). These changes between the segments had no impact on our consolidated financial statements.

Our portfolio is comprised of domestic and international investments. At December 31, 2021, our international investments within our Real Estate segment were comprised of investments in Germany, Spain, the Netherlands, Poland, the United Kingdom, Italy, France, Croatia, Denmark, Canada, Finland, Mexico, Norway, Hungary, Portugal, Lithuania, the Czech Republic, Sweden, Slovakia, Austria, Japan, Latvia, and Estonia. We sold our only remaining investment in Belgium during 2021. No tenant or international country individually comprised at least 10% of our total lease revenues for the years ended December 31, 2021, 2020, or 2019, or at least 10% of our total long-lived assets at December 31, 2021 or 2020. Revenues and assets within our Investment Management segment are entirely domestic. The following tables present the geographic information for our Real Estate segment (in thousands):

	Years Ended December 31,
	2021		2020		2019
Revenues
Domestic	$	860,961	$	756,763	$	783,828
International	451,165		421,234		389,035
Total	$	1,312,126	$	1,177,997	$	1,172,863

	December 31,
	2021		2020
Long-lived Assets (a)
Domestic	$	8,170,448	$	7,589,805
International	4,866,921		4,796,767
Total	$	13,037,369	$	12,386,572
Equity Investments in Real Estate
Domestic	$	236,643	$	152,451
International	55,260		74,438
Total	$	291,903	$	226,889

__________

(a)Consists of Net investments in real estate. In 2021, we reclassified loans receivable to be included within Net investments in real estate (Note 2). As a result, Net investments in real estate as of December 31, 2020 has been revised to conform to the current period presentation.