Segment Reporting

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

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

Real Estate

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Revenues
Lease revenues	$	314,354	$	289,064	$	622,079	$	573,729
Income from direct financing leases and loans receivable	17,778		17,422		36,157		35,164
Operating property revenues (a)	5,064		3,245		8,929		5,424
Lease termination income and other	2,591		5,059		16,713		6,644
	339,787		314,790		683,878		620,961
Operating Expenses
Depreciation and amortization	115,080		114,348		230,473		224,670
General and administrative	20,841		20,464		43,925		42,547
Reimbursable tenant costs	16,704		15,092		33,664		30,850
Property expenses, excluding reimbursable tenant costs	11,851		11,815		25,630		22,698
Stock-based compensation expense	9,758		9,048		17,591		14,429
Impairment charges	6,206		—		26,385		—
Operating property expenses	3,191		2,049		5,978		3,960
Merger and other expenses	1,984		(2,599)		(341)		(3,090)
	185,615		170,217		383,305		336,064
Other Income and Expenses
Interest expense	(46,417)		(49,252)		(92,470)		(100,892)
Gain on sale of real estate, net	31,119		19,840		42,367		29,212
Other gains and (losses)	(20,155)		7,472		14,263		(34,717)
Non-operating income	5,975		3,065		14,517		9,337
Earnings (losses) from equity method investments in real estate	4,529		(1,854)		3,742		(12,973)
	(24,949)		(20,729)		(17,581)		(110,033)
Income before income taxes	129,223		123,844		282,992		174,864
Provision for income taxes	(5,955)		(9,119)		(12,868)		(15,545)
Net Income from Real Estate	123,268		114,725		270,124		159,319
Net income attributable to noncontrolling interests	(40)		(38)		(38)		(45)
Net Income from Real Estate Attributable to W. P. Carey	$	123,228	$	114,687	$	270,086	$	159,274

Investment Management

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Revenues
Asset management and other revenue	$	3,467	$	3,966	$	6,887	$	7,920
Reimbursable costs from affiliates	1,143		968		2,070		2,009
	4,610		4,934		8,957		9,929
Operating Expenses
Reimbursable costs from affiliates	1,143		968		2,070		2,009
Merger and other expenses	—		—		3		15
	1,143		968		2,073		2,024
Other Income and Expenses
Earnings from equity method investments in the Managed Programs	2,872		1,698		8,431		3,084
Other gains and (losses)	(1,591)		73		(264)		1,074
Non-operating (loss) income	(1)		—		3		84
	1,280		1,771		8,170		4,242
Income before income taxes	4,747		5,737		15,054		12,147
(Provision for) benefit from income taxes	(297)		(179)		(467)		458
Net Income from Investment Management Attributable to W. P. Carey	$	4,450	$	5,558	$	14,587	$	12,605

Total Company

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Revenues	$	344,397	$	319,724	$	692,835	$	630,890
Operating expenses	186,758		171,185		385,378		338,088
Other income and (expenses)	(23,669)		(18,958)		(9,411)		(105,791)
Provision for income taxes	(6,252)		(9,298)		(13,335)		(15,087)
Net income attributable to noncontrolling interests	(40)		(38)		(38)		(45)
Net income attributable to W. P. Carey	$	127,678	$	120,245	$	284,673	$	171,879

	Total Assets at
	June 30, 2022		December 31, 2021
Real Estate	$	15,314,097	$	15,344,703
Investment Management	140,132		135,927
Total Company	$	15,454,229	$	15,480,630

__________

(a)Operating property revenues from our hotels include $3.3 million and $1.7 million for the three months ended June 30, 2022 and 2021, respectively, and $5.4 million and $2.5 million for the six months ended June 30, 2022 and 2021, respectively, generated from a hotel in Bloomington, Minnesota (revenues reflect higher occupancy as the hotel’s business recovered from the COVID-19 pandemic).