(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | |||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Exhibit No. | Description | |||||||
99.1 | ||||||||
99.2 | ||||||||
99.3 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
W. P. Carey Inc. | |||||||||||
Date: | By: | /s/ ToniAnn Sanzone | |||||||||
ToniAnn Sanzone | |||||||||||
Chief Financial Officer |
2024 Second Quarter | |||||
Net income attributable to W. P. Carey (millions) | $142.9 | ||||
Diluted earnings per share | $0.65 | ||||
AFFO (millions) | $257.1 | ||||
AFFO per diluted share | $1.17 |
June 30, 2024 | December 31, 2023 | ||||||||||
Assets | |||||||||||
Investments in real estate: | |||||||||||
Land, buildings and improvements — net lease and other | $ | 12,341,979 | $ | 12,095,458 | |||||||
Land, buildings and improvements — operating properties | 1,238,340 | 1,256,249 | |||||||||
Net investments in finance leases and loans receivable | 667,667 | 1,514,923 | |||||||||
In-place lease intangible assets and other | 2,256,793 | 2,308,853 | |||||||||
Above-market rent intangible assets | 676,666 | 706,773 | |||||||||
Investments in real estate | 17,181,445 | 17,882,256 | |||||||||
Accumulated depreciation and amortization (a) | (3,096,516) | (3,005,479) | |||||||||
Assets held for sale, net | 7,743 | 37,122 | |||||||||
Net investments in real estate | 14,092,672 | 14,913,899 | |||||||||
Equity method investments | 356,220 | 354,261 | |||||||||
Cash and cash equivalents | 1,085,967 | 633,860 | |||||||||
Other assets, net | 1,261,222 | 1,096,474 | |||||||||
Goodwill | 973,204 | 978,289 | |||||||||
Total assets | $ | 17,769,285 | $ | 17,976,783 | |||||||
Liabilities and Equity | |||||||||||
Debt: | |||||||||||
Senior unsecured notes, net | $ | 6,519,887 | $ | 6,035,686 | |||||||
Unsecured term loans, net | 1,100,356 | 1,125,564 | |||||||||
Unsecured revolving credit facility | 15,005 | 403,785 | |||||||||
Non-recourse mortgages, net | 467,200 | 579,147 | |||||||||
Debt, net | 8,102,448 | 8,144,182 | |||||||||
Accounts payable, accrued expenses and other liabilities | 548,397 | 615,750 | |||||||||
Below-market rent and other intangible liabilities, net | 128,710 | 136,872 | |||||||||
Deferred income taxes | 155,716 | 180,650 | |||||||||
Dividends payable | 194,515 | 192,332 | |||||||||
Total liabilities | 9,129,786 | 9,269,786 | |||||||||
Preferred stock, $0.001 par value, 50,000,000 shares authorized; none issued | — | — | |||||||||
Common stock, $0.001 par value, 450,000,000 shares authorized; 218,831,869 and 218,671,874 shares, respectively, issued and outstanding | 219 | 219 | |||||||||
Additional paid-in capital | 11,782,157 | 11,784,461 | |||||||||
Distributions in excess of accumulated earnings | (2,975,236) | (2,891,424) | |||||||||
Deferred compensation obligation | 78,379 | 62,046 | |||||||||
Accumulated other comprehensive loss | (252,640) | (254,867) | |||||||||
Total stockholders’ equity | 8,632,879 | 8,700,435 | |||||||||
Noncontrolling interests | 6,620 | 6,562 | |||||||||
Total equity | 8,639,499 | 8,706,997 | |||||||||
Total liabilities and equity | $ | 17,769,285 | $ | 17,976,783 |
Three Months Ended | |||||||||||||||||
June 30, 2024 | March 31, 2024 | June 30, 2023 | |||||||||||||||
Revenues | |||||||||||||||||
Real Estate: | |||||||||||||||||
Lease revenues | $ | 324,104 | $ | 322,251 | $ | 369,124 | |||||||||||
Income from finance leases and loans receivable | 14,961 | 25,793 | 27,311 | ||||||||||||||
Operating property revenues | 38,715 | 36,643 | 50,676 | ||||||||||||||
Other lease-related income | 9,149 | 2,155 | 5,040 | ||||||||||||||
386,929 | 386,842 | 452,151 | |||||||||||||||
Investment Management: | |||||||||||||||||
Asset management revenue (a) | 1,686 | 1,893 | 303 | ||||||||||||||
Other advisory income and reimbursements (b) | 1,057 | 1,063 | 124 | ||||||||||||||
2,743 | 2,956 | 427 | |||||||||||||||
389,672 | 389,798 | 452,578 | |||||||||||||||
Operating Expenses | |||||||||||||||||
Depreciation and amortization | 137,481 | 118,768 | 143,548 | ||||||||||||||
General and administrative | 24,168 | 27,868 | 24,912 | ||||||||||||||
Operating property expenses | 18,565 | 17,950 | 26,919 | ||||||||||||||
Impairment charges — real estate | 15,752 | — | — | ||||||||||||||
Reimbursable tenant costs | 14,004 | 12,973 | 20,523 | ||||||||||||||
Property expenses, excluding reimbursable tenant costs | 13,931 | 12,173 | 5,371 | ||||||||||||||
Stock-based compensation expense | 8,903 | 8,856 | 8,995 | ||||||||||||||
Merger and other expenses | 206 | 4,452 | 1,419 | ||||||||||||||
233,010 | 203,040 | 231,687 | |||||||||||||||
Other Income and Expenses | |||||||||||||||||
Interest expense | (65,307) | (68,651) | (75,488) | ||||||||||||||
Gain on sale of real estate, net | 39,363 | 15,445 | 1,808 | ||||||||||||||
Non-operating income (c) | 9,215 | 15,505 | 4,509 | ||||||||||||||
Earnings from equity method investments | 6,636 | 4,864 | 4,355 | ||||||||||||||
Other gains and (losses) (d) | 2,504 | 13,839 | (1,366) | ||||||||||||||
(7,589) | (18,998) | (66,182) | |||||||||||||||
Income before income taxes | 149,073 | 167,760 | 154,709 | ||||||||||||||
Provision for income taxes | (6,219) | (8,674) | (10,129) | ||||||||||||||
Net Income | 142,854 | 159,086 | 144,580 | ||||||||||||||
Net loss attributable to noncontrolling interests | 41 | 137 | 40 | ||||||||||||||
Net Income Attributable to W. P. Carey | $ | 142,895 | $ | 159,223 | $ | 144,620 | |||||||||||
Basic Earnings Per Share | $ | 0.65 | $ | 0.72 | $ | 0.67 | |||||||||||
Diluted Earnings Per Share | $ | 0.65 | $ | 0.72 | $ | 0.67 | |||||||||||
Weighted-Average Shares Outstanding | |||||||||||||||||
Basic | 220,195,910 | 220,031,597 | 215,075,114 | ||||||||||||||
Diluted | 220,214,118 | 220,129,870 | 215,184,485 | ||||||||||||||
Dividends Declared Per Share | $ | 0.870 | $ | 0.865 | $ | 1.069 |
Six Months Ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
Revenues | |||||||||||
Real Estate: | |||||||||||
Lease revenues | $ | 646,355 | $ | 721,460 | |||||||
Income from finance leases and loans receivable | 40,754 | 48,066 | |||||||||
Operating property revenues | 75,358 | 91,562 | |||||||||
Other lease-related income | 11,304 | 18,413 | |||||||||
773,771 | 879,501 | ||||||||||
Investment Management: | |||||||||||
Asset management and other revenue | 3,579 | 642 | |||||||||
Other advisory income and reimbursements | 2,120 | 225 | |||||||||
5,699 | 867 | ||||||||||
779,470 | 880,368 | ||||||||||
Operating Expenses | |||||||||||
Depreciation and amortization | 256,249 | 299,957 | |||||||||
General and administrative | 52,036 | 51,461 | |||||||||
Operating property expenses | 36,515 | 48,168 | |||||||||
Reimbursable tenant costs | 26,977 | 42,499 | |||||||||
Property expenses, excluding reimbursable tenant costs | 26,104 | 18,143 | |||||||||
Stock-based compensation expense | 17,759 | 16,761 | |||||||||
Impairment charges — real estate | 15,752 | — | |||||||||
Merger and other expenses | 4,658 | 1,443 | |||||||||
436,050 | 478,432 | ||||||||||
Other Income and Expenses | |||||||||||
Interest expense | (133,958) | (142,684) | |||||||||
Gain on sale of real estate, net | 54,808 | 179,557 | |||||||||
Non-operating income | 24,720 | 9,135 | |||||||||
Other gains and (losses) | 16,343 | 6,734 | |||||||||
Earnings from equity method investments | 11,500 | 9,591 | |||||||||
(26,587) | 62,333 | ||||||||||
Income before income taxes | 316,833 | 464,269 | |||||||||
Provision for income taxes | (14,893) | (25,248) | |||||||||
Net Income | 301,940 | 439,021 | |||||||||
Net loss (income) attributable to noncontrolling interests | 178 | (21) | |||||||||
Net Income Attributable to W. P. Carey | $ | 302,118 | $ | 439,000 | |||||||
Basic Earnings Per Share | $ | 1.37 | $ | 2.06 | |||||||
Diluted Earnings Per Share | $ | 1.37 | $ | 2.05 | |||||||
Weighted-Average Shares Outstanding | |||||||||||
Basic | 220,113,753 | 213,522,150 | |||||||||
Diluted | 220,261,525 | 213,875,471 | |||||||||
Dividends Declared Per Share | $ | 1.735 | $ | 2.136 |
Three Months Ended | |||||||||||||||||
June 30, 2024 | March 31, 2024 | June 30, 2023 | |||||||||||||||
Net income attributable to W. P. Carey | $ | 142,895 | $ | 159,223 | $ | 144,620 | |||||||||||
Adjustments: | |||||||||||||||||
Depreciation and amortization of real property | 136,840 | 118,113 | 142,932 | ||||||||||||||
Gain on sale of real estate, net | (39,363) | (15,445) | (1,808) | ||||||||||||||
Impairment charges | 15,752 | — | — | ||||||||||||||
Proportionate share of adjustments to earnings from equity method investments (a) | 3,015 | 2,949 | 2,883 | ||||||||||||||
Proportionate share of adjustments for noncontrolling interests (b) | (101) | (103) | (268) | ||||||||||||||
Total adjustments | 116,143 | 105,514 | 143,739 | ||||||||||||||
FFO (as defined by NAREIT) Attributable to W. P. Carey (c) | 259,038 | 264,737 | 288,359 | ||||||||||||||
Adjustments: | |||||||||||||||||
Straight-line and other leasing and financing adjustments | (15,310) | (19,553) | (19,086) | ||||||||||||||
Stock-based compensation | 8,903 | 8,856 | 8,995 | ||||||||||||||
Above- and below-market rent intangible lease amortization, net | 5,766 | 4,068 | 8,824 | ||||||||||||||
Amortization of deferred financing costs | 4,555 | 4,588 | 5,904 | ||||||||||||||
Other (gains) and losses (d) | (2,504) | (13,839) | 1,366 | ||||||||||||||
Tax benefit – deferred and other | (1,392) | (1,373) | (2,723) | ||||||||||||||
Other amortization and non-cash items | 580 | 579 | 527 | ||||||||||||||
Merger and other expenses (e) | 206 | 4,452 | 1,419 | ||||||||||||||
Proportionate share of adjustments to earnings from equity method investments (a) | (2,646) | (519) | (255) | ||||||||||||||
Proportionate share of adjustments for noncontrolling interests (b) | (97) | (104) | (24) | ||||||||||||||
Total adjustments | (1,939) | (12,845) | 4,947 | ||||||||||||||
AFFO Attributable to W. P. Carey (c) | $ | 257,099 | $ | 251,892 | $ | 293,306 | |||||||||||
Summary | |||||||||||||||||
FFO (as defined by NAREIT) attributable to W. P. Carey (c) | $ | 259,038 | $ | 264,737 | $ | 288,359 | |||||||||||
FFO (as defined by NAREIT) attributable to W. P. Carey per diluted share (c) | $ | 1.18 | $ | 1.20 | $ | 1.34 | |||||||||||
AFFO attributable to W. P. Carey (c) | $ | 257,099 | $ | 251,892 | $ | 293,306 | |||||||||||
AFFO attributable to W. P. Carey per diluted share (c) | $ | 1.17 | $ | 1.14 | $ | 1.36 | |||||||||||
Diluted weighted-average shares outstanding | 220,214,118 | 220,129,870 | 215,184,485 |
Six Months Ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
Net income attributable to W. P. Carey | $ | 302,118 | $ | 439,000 | |||||||
Adjustments: | |||||||||||
Depreciation and amortization of real property | 254,953 | 298,800 | |||||||||
Gain on sale of real estate, net | (54,808) | (179,557) | |||||||||
Impairment charges | 15,752 | — | |||||||||
Proportionate share of adjustments to earnings from equity method investments (a) | 5,964 | 5,489 | |||||||||
Proportionate share of adjustments for noncontrolling interests (b) | (204) | (567) | |||||||||
Total adjustments | 221,657 | 124,165 | |||||||||
FFO (as defined by NAREIT) Attributable to W. P. Carey (c) | 523,775 | 563,165 | |||||||||
Adjustments: | |||||||||||
Straight-line and other leasing and financing adjustments | (34,863) | (34,136) | |||||||||
Stock-based compensation | 17,759 | 16,761 | |||||||||
Other (gains) and losses | (16,343) | (6,734) | |||||||||
Above- and below-market rent intangible lease amortization, net | 9,834 | 19,685 | |||||||||
Amortization of deferred financing costs | 9,143 | 10,844 | |||||||||
Merger and other expenses | 4,658 | 1,443 | |||||||||
Tax (benefit) expense – deferred and other | (2,765) | 1,643 | |||||||||
Other amortization and non-cash items | 1,159 | 999 | |||||||||
Proportionate share of adjustments to earnings from equity method investments (a) | (3,165) | (1,181) | |||||||||
Proportionate share of adjustments for noncontrolling interests (b) | (201) | 36 | |||||||||
Total adjustments | (14,784) | 9,360 | |||||||||
AFFO Attributable to W. P. Carey (c) | $ | 508,991 | $ | 572,525 | |||||||
Summary | |||||||||||
FFO (as defined by NAREIT) attributable to W. P. Carey (c) | $ | 523,775 | $ | 563,165 | |||||||
FFO (as defined by NAREIT) attributable to W. P. Carey per diluted share (c) | $ | 2.38 | $ | 2.63 | |||||||
AFFO attributable to W. P. Carey (c) | $ | 508,991 | $ | 572,525 | |||||||
AFFO attributable to W. P. Carey per diluted share (c) | $ | 2.31 | $ | 2.68 | |||||||
Diluted weighted-average shares outstanding | 220,261,525 | 213,875,471 |
REIT | Real estate investment trust | ||||
NLOP | Net Lease Office Properties | ||||
Spin-Off | The spin-off of 59 office properties owned by WPC into NLOP, a separate publicly-traded REIT, which was completed on November 1, 2023 | ||||
U.S. | United States | ||||
ABR | Contractual minimum annualized base rent | ||||
SEC | Securities and Exchange Commission | ||||
ASC | Accounting Standards Codification | ||||
NAREIT | National Association of Real Estate Investment Trusts (an industry trade group) | ||||
EUR | Euro | ||||
Hellweg | Hellweg Die Profi-Baumärkte GmbH & Co. KG (one of our tenants) | ||||
EURIBOR | Euro Interbank Offered Rate | ||||
SOFR | Secured Overnight Financing Rate | ||||
SONIA | Sterling Overnight Index Average | ||||
TIBOR | Tokyo Interbank Offered Rate |
Table of Contents |
Overview | |||||
Financial Results | |||||
Balance Sheets and Capitalization | |||||
Real Estate | |||||
Investment Activity | |||||
Appendix | |||||
Summary Metrics |
Financial Results | |||||||||||||||||||||||
Revenues, including reimbursable costs – consolidated ($000s) | $ | 389,672 | |||||||||||||||||||||
Net income attributable to W. P. Carey ($000s) | 142,895 | ||||||||||||||||||||||
Net income attributable to W. P. Carey per diluted share | 0.65 | ||||||||||||||||||||||
Normalized pro rata cash NOI ($000s) (a) (b) | 328,680 | ||||||||||||||||||||||
Adjusted EBITDA ($000s) (a) (b) | 326,773 | ||||||||||||||||||||||
AFFO attributable to W. P. Carey ($000s) (a) (b) | 257,099 | ||||||||||||||||||||||
AFFO attributable to W. P. Carey per diluted share (a) (b) | 1.17 | ||||||||||||||||||||||
Dividends declared per share – current quarter | 0.870 | ||||||||||||||||||||||
Dividends declared per share – current quarter annualized | 3.480 | ||||||||||||||||||||||
Dividend yield – annualized, based on quarter end share price of $55.05 | 6.3 | % | |||||||||||||||||||||
Dividend payout ratio – for the six months ended June 30, 2024 (c) | 75.1 | % | |||||||||||||||||||||
Balance Sheet and Capitalization | |||||||||||||||||||||||
Equity market capitalization – based on quarter end share price of $55.05 ($000s) | $ | 12,046,694 | |||||||||||||||||||||
Pro rata net debt ($000s) (d) | 7,058,297 | ||||||||||||||||||||||
Enterprise value ($000s) | 19,104,991 | ||||||||||||||||||||||
Total consolidated debt ($000s) | 8,102,448 | ||||||||||||||||||||||
Gross assets ($000s) (e) | 19,448,136 | ||||||||||||||||||||||
Liquidity ($000s) (f) | 3,172,116 | ||||||||||||||||||||||
Pro rata net debt to enterprise value (b) | 36.9 | % | |||||||||||||||||||||
Pro rata net debt to adjusted EBITDA (annualized) (a) (b) | 5.4x | ||||||||||||||||||||||
Total consolidated debt to gross assets | 41.7 | % | |||||||||||||||||||||
Total consolidated secured debt to gross assets | 2.4 | % | |||||||||||||||||||||
Cash interest expense coverage ratio (a) (b) | 5.1x | ||||||||||||||||||||||
Weighted-average interest rate – for the three months ended June 30, 2024 (b) | 3.1 | % | |||||||||||||||||||||
Weighted-average interest rate – as of June 30, 2024 (b) | 3.3 | % | |||||||||||||||||||||
Weighted-average debt maturity (years) (b) | 4.4 | ||||||||||||||||||||||
Moody's Investors Service – issuer rating | Baa1 (stable) | ||||||||||||||||||||||
Standard & Poor's Ratings Services – issuer rating | BBB+ (stable) | ||||||||||||||||||||||
Real Estate Portfolio (Pro Rata) | |||||||||||||||||||||||
ABR – total portfolio ($000s) (g) | $ | 1,294,521 | |||||||||||||||||||||
ABR – unencumbered portfolio (% / $000s) (g) (h) | 94.4% / | $ | 1,222,606 | ||||||||||||||||||||
Number of net-leased properties | 1,291 | ||||||||||||||||||||||
Number of operating properties (i) | 95 | ||||||||||||||||||||||
Number of tenants – net-leased properties | 346 | ||||||||||||||||||||||
ABR from top ten tenants as a % of total ABR – net-leased properties | 19.5 | % | |||||||||||||||||||||
ABR from investment grade tenants as a % of total ABR – net-leased properties (j) | 23.1 | % | |||||||||||||||||||||
Contractual same-store growth (k) | 2.9 | % | |||||||||||||||||||||
Net-leased properties – square footage (millions) | 170.1 | ||||||||||||||||||||||
Occupancy – net-leased properties | 98.8 | % | |||||||||||||||||||||
Weighted-average lease term (years) | 12.0 | ||||||||||||||||||||||
Investment volume – current quarter ($000s) | $ | 293,352 | |||||||||||||||||||||
Dispositions – current quarter ($000s) | 152,228 | ||||||||||||||||||||||
Maximum commitment for capital investments and commitments expected to be completed during 2024 ($000s) | 37,969 | ||||||||||||||||||||||
Investing for the Long Run® | 1 |
Investing for the Long Run® | 2 |
Components of Net Asset Value |
Normalized Pro Rata Cash NOI (a) (b) | Three Months Ended Jun. 30, 2024 | ||||||||||||||||
Net lease properties | $ | 306,850 | |||||||||||||||
Self-storage and other operating properties (c) | 21,830 | ||||||||||||||||
Total normalized pro rata cash NOI (a) (b) | $ | 328,680 | |||||||||||||||
Balance Sheet – Selected Information (Consolidated Unless Otherwise Stated) | As of Jun. 30, 2024 | ||||||||||||||||
Assets | |||||||||||||||||
Book value of real estate excluded from normalized pro rata cash NOI (d) | $ | 260,883 | |||||||||||||||
Cash and cash equivalents | 1,085,967 | ||||||||||||||||
Las Vegas retail complex construction loan (e) | 239,848 | ||||||||||||||||
Other secured loans receivable, net | 15,000 | ||||||||||||||||
Other assets, net: | |||||||||||||||||
Investment in shares of Lineage (a cold storage REIT) (f) | $ | 404,921 | |||||||||||||||
Straight-line rent adjustments | 339,530 | ||||||||||||||||
Cash held at qualified intermediaries (g) | 106,935 | ||||||||||||||||
Deferred charges | 75,529 | ||||||||||||||||
Taxes receivable | 67,945 | ||||||||||||||||
Non-rent tenant and other receivables | 53,170 | ||||||||||||||||
Office lease right-of-use assets, net | 53,046 | ||||||||||||||||
Restricted cash, including escrow (excludes cash held at qualified intermediaries) | 36,768 | ||||||||||||||||
Prepaid expenses | 26,998 | ||||||||||||||||
Deferred income taxes | 18,677 | ||||||||||||||||
Securities and derivatives | 17,623 | ||||||||||||||||
Leasehold improvements, furniture and fixtures | 13,097 | ||||||||||||||||
Rent receivables (h) | 2,440 | ||||||||||||||||
Due from affiliates | 1,108 | ||||||||||||||||
Other | 43,435 | ||||||||||||||||
Total other assets, net | $ | 1,261,222 | |||||||||||||||
Liabilities | |||||||||||||||||
Total pro rata debt outstanding (b) (i) | $ | 8,251,199 | |||||||||||||||
Dividends payable | 194,515 | ||||||||||||||||
Deferred income taxes | 155,716 | ||||||||||||||||
Accounts payable, accrued expenses and other liabilities: | |||||||||||||||||
Accounts payable and accrued expenses | $ | 158,381 | |||||||||||||||
Operating lease liabilities | 137,394 | ||||||||||||||||
Prepaid and deferred rents | 112,656 | ||||||||||||||||
Accrued taxes payable | 49,488 | ||||||||||||||||
Tenant security deposits | 45,072 | ||||||||||||||||
Other | 45,406 | ||||||||||||||||
Total accounts payable, accrued expenses and other liabilities | $ | 548,397 |
Investing for the Long Run® | 3 |
Investing for the Long Run® | 4 |
Investing for the Long Run® | 5 |
Consolidated Statements of Income – Last Five Quarters |
Three Months Ended | |||||||||||||||||||||||||||||
Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | |||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||
Real Estate: | |||||||||||||||||||||||||||||
Lease revenues | $ | 324,104 | $ | 322,251 | $ | 336,757 | $ | 369,159 | $ | 369,124 | |||||||||||||||||||
Income from finance leases and loans receivable | 14,961 | 25,793 | 31,532 | 27,575 | 27,311 | ||||||||||||||||||||||||
Operating property revenues | 38,715 | 36,643 | 39,477 | 49,218 | 50,676 | ||||||||||||||||||||||||
Other lease-related income | 9,149 | 2,155 | 2,610 | 2,310 | 5,040 | ||||||||||||||||||||||||
386,929 | 386,842 | 410,376 | 448,262 | 452,151 | |||||||||||||||||||||||||
Investment Management: | |||||||||||||||||||||||||||||
Asset management revenue (a) | 1,686 | 1,893 | 1,348 | 194 | 303 | ||||||||||||||||||||||||
Other advisory income and reimbursements (b) | 1,057 | 1,063 | 713 | 97 | 124 | ||||||||||||||||||||||||
2,743 | 2,956 | 2,061 | 291 | 427 | |||||||||||||||||||||||||
389,672 | 389,798 | 412,437 | 448,553 | 452,578 | |||||||||||||||||||||||||
Operating Expenses | |||||||||||||||||||||||||||||
Depreciation and amortization | 137,481 | 118,768 | 129,484 | 144,771 | 143,548 | ||||||||||||||||||||||||
General and administrative | 24,168 | 27,868 | 21,579 | 23,355 | 24,912 | ||||||||||||||||||||||||
Operating property expenses | 18,565 | 17,950 | 20,403 | 26,570 | 26,919 | ||||||||||||||||||||||||
Impairment charges — real estate (c) | 15,752 | — | 71,238 | 15,173 | — | ||||||||||||||||||||||||
Reimbursable tenant costs | 14,004 | 12,973 | 18,942 | 20,498 | 20,523 | ||||||||||||||||||||||||
Property expenses, excluding reimbursable tenant costs | 13,931 | 12,173 | 13,287 | 13,021 | 5,371 | ||||||||||||||||||||||||
Stock-based compensation expense | 8,903 | 8,856 | 8,693 | 9,050 | 8,995 | ||||||||||||||||||||||||
Merger and other expenses (d) | 206 | 4,452 | (641) | 4,152 | 1,419 | ||||||||||||||||||||||||
233,010 | 203,040 | 282,985 | 256,590 | 231,687 | |||||||||||||||||||||||||
Other Income and Expenses | |||||||||||||||||||||||||||||
Interest expense | (65,307) | (68,651) | (72,194) | (76,974) | (75,488) | ||||||||||||||||||||||||
Gain on sale of real estate, net (e) | 39,363 | 15,445 | 134,026 | 2,401 | 1,808 | ||||||||||||||||||||||||
Non-operating income (f) | 9,215 | 15,505 | 7,445 | 4,862 | 4,509 | ||||||||||||||||||||||||
Earnings from equity method investments | 6,636 | 4,864 | 5,006 | 4,978 | 4,355 | ||||||||||||||||||||||||
Other gains and (losses) (g) | 2,504 | 13,839 | (45,777) | 2,859 | (1,366) | ||||||||||||||||||||||||
(7,589) | (18,998) | 28,506 | (61,874) | (66,182) | |||||||||||||||||||||||||
Income before income taxes | 149,073 | 167,760 | 157,958 | 130,089 | 154,709 | ||||||||||||||||||||||||
Provision for income taxes | (6,219) | (8,674) | (13,714) | (5,090) | (10,129) | ||||||||||||||||||||||||
Net Income | 142,854 | 159,086 | 144,244 | 124,999 | 144,580 | ||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | 41 | 137 | 50 | 41 | 40 | ||||||||||||||||||||||||
Net Income Attributable to W. P. Carey | $ | 142,895 | $ | 159,223 | $ | 144,294 | $ | 125,040 | $ | 144,620 | |||||||||||||||||||
Basic Earnings Per Share | $ | 0.65 | $ | 0.72 | $ | 0.66 | $ | 0.58 | $ | 0.67 | |||||||||||||||||||
Diluted Earnings Per Share | $ | 0.65 | $ | 0.72 | $ | 0.66 | $ | 0.58 | $ | 0.67 | |||||||||||||||||||
Weighted-Average Shares Outstanding | |||||||||||||||||||||||||||||
Basic | 220,195,910 | 220,031,597 | 219,277,446 | 215,097,114 | 215,075,114 | ||||||||||||||||||||||||
Diluted | 220,214,118 | 220,129,870 | 219,469,641 | 215,252,969 | 215,184,485 | ||||||||||||||||||||||||
Dividends Declared Per Share | $ | 0.870 | $ | 0.865 | $ | 0.860 | $ | 1.071 | $ | 1.069 |
Investing for the Long Run® | 6 |
FFO and AFFO, Consolidated – Last Five Quarters |
Three Months Ended | |||||||||||||||||||||||||||||
Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | |||||||||||||||||||||||||
Net income attributable to W. P. Carey | $ | 142,895 | $ | 159,223 | $ | 144,294 | $ | 125,040 | $ | 144,620 | |||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Depreciation and amortization of real property | 136,840 | 118,113 | 128,839 | 144,111 | 142,932 | ||||||||||||||||||||||||
Gain on sale of real estate, net (a) | (39,363) | (15,445) | (134,026) | (2,401) | (1,808) | ||||||||||||||||||||||||
Impairment charges — real estate (b) | 15,752 | — | 71,238 | 15,173 | — | ||||||||||||||||||||||||
Proportionate share of adjustments to earnings from equity method investments (c) | 3,015 | 2,949 | 2,942 | 2,950 | 2,883 | ||||||||||||||||||||||||
Proportionate share of adjustments for noncontrolling interests (d) | (101) | (103) | (133) | 34 | (268) | ||||||||||||||||||||||||
Total adjustments | 116,143 | 105,514 | 68,860 | 159,867 | 143,739 | ||||||||||||||||||||||||
FFO (as defined by NAREIT) Attributable to W. P. Carey (e) | 259,038 | 264,737 | 213,154 | 284,907 | 288,359 | ||||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Straight-line and other leasing and financing adjustments | (15,310) | (19,553) | (19,071) | (18,662) | (19,086) | ||||||||||||||||||||||||
Stock-based compensation | 8,903 | 8,856 | 8,693 | 9,050 | 8,995 | ||||||||||||||||||||||||
Above- and below-market rent intangible lease amortization, net | 5,766 | 4,068 | 6,644 | 7,835 | 8,824 | ||||||||||||||||||||||||
Amortization of deferred financing costs | 4,555 | 4,588 | 4,895 | 4,805 | 5,904 | ||||||||||||||||||||||||
Other (gains) and losses (f) | (2,504) | (13,839) | 45,777 | (2,859) | 1,366 | ||||||||||||||||||||||||
Tax (benefit) expense – deferred and other | (1,392) | (1,373) | 2,507 | (4,349) | (2,723) | ||||||||||||||||||||||||
Other amortization and non-cash items | 580 | 579 | 152 | 584 | 527 | ||||||||||||||||||||||||
Merger and other expenses (g) | 206 | 4,452 | (641) | 4,152 | 1,419 | ||||||||||||||||||||||||
Proportionate share of adjustments to earnings from equity method investments (c) | (2,646) | (519) | (663) | (691) | (255) | ||||||||||||||||||||||||
Proportionate share of adjustments for noncontrolling interests (d) | (97) | (104) | (97) | (380) | (24) | ||||||||||||||||||||||||
Total adjustments | (1,939) | (12,845) | 48,196 | (515) | 4,947 | ||||||||||||||||||||||||
AFFO Attributable to W. P. Carey (e) | $ | 257,099 | $ | 251,892 | $ | 261,350 | $ | 284,392 | $ | 293,306 | |||||||||||||||||||
Summary | |||||||||||||||||||||||||||||
FFO (as defined by NAREIT) attributable to W. P. Carey (e) | $ | 259,038 | $ | 264,737 | $ | 213,154 | $ | 284,907 | $ | 288,359 | |||||||||||||||||||
FFO (as defined by NAREIT) attributable to W. P. Carey per diluted share (e) | $ | 1.18 | $ | 1.20 | $ | 0.97 | $ | 1.32 | $ | 1.34 | |||||||||||||||||||
AFFO attributable to W. P. Carey (e) | $ | 257,099 | $ | 251,892 | $ | 261,350 | $ | 284,392 | $ | 293,306 | |||||||||||||||||||
AFFO attributable to W. P. Carey per diluted share (e) | $ | 1.17 | $ | 1.14 | $ | 1.19 | $ | 1.32 | $ | 1.36 | |||||||||||||||||||
Diluted weighted-average shares outstanding | 220,214,118 | 220,129,870 | 219,469,641 | 215,252,969 | 215,184,485 |
Investing for the Long Run® | 7 |
Elements of Pro Rata Statement of Income and AFFO Adjustments |
Equity Method Investments (a) | Noncontrolling Interests (b) | AFFO Adjustments | ||||||||||||||||||
Revenues | ||||||||||||||||||||
Real Estate: | ||||||||||||||||||||
Lease revenues | $ | 3,801 | $ | (247) | $ | (11,116) | (c) | |||||||||||||
Income from finance leases and loans receivable | — | — | 503 | |||||||||||||||||
Operating property revenues: | ||||||||||||||||||||
Self-storage revenues | 2,450 | — | — | |||||||||||||||||
Hotel revenues | — | — | — | |||||||||||||||||
Student housing revenues | — | — | — | |||||||||||||||||
Other lease-related income | — | — | — | |||||||||||||||||
Investment Management: | ||||||||||||||||||||
Asset management revenue | — | — | — | |||||||||||||||||
Other advisory income and reimbursements | — | — | — | |||||||||||||||||
Operating Expenses | ||||||||||||||||||||
Depreciation and amortization | 2,861 | (101) | (139,698) | (d) | ||||||||||||||||
General and administrative | — | — | — | |||||||||||||||||
Operating property expenses: | ||||||||||||||||||||
Self-storage expenses | 799 | — | (29) | |||||||||||||||||
Hotel expenses | — | — | — | |||||||||||||||||
Student housing expenses | — | — | — | |||||||||||||||||
Impairment charges — real estate | — | — | (15,752) | (e) | ||||||||||||||||
Reimbursable tenant costs | 229 | (44) | — | |||||||||||||||||
Property expenses, excluding reimbursable tenant costs | 155 | (16) | (450) | (e) | ||||||||||||||||
Stock-based compensation expense | — | — | (8,903) | (e) | ||||||||||||||||
Merger and other expenses | — | — | (206) | |||||||||||||||||
Other Income and Expenses | ||||||||||||||||||||
Interest expense | (935) | 68 | 4,607 | (f) | ||||||||||||||||
Gain on sale of real estate, net | — | — | (39,363) | |||||||||||||||||
Non-operating income | 12 | (2) | — | |||||||||||||||||
Earnings from equity method investments: | ||||||||||||||||||||
Income related to joint ventures | (1,533) | — | (1,252) | (g) | ||||||||||||||||
Other gains and (losses) | 14 | 97 | (2,615) | (h) | ||||||||||||||||
Provision for income taxes | 235 | (9) | (1,598) | (i) | ||||||||||||||||
Net loss attributable to noncontrolling interests | — | (68) | — |
Investing for the Long Run® | 8 |
Capital Expenditures |
Turnover Costs (a) | |||||
Tenant improvements | $ | 2,363 | |||
Leasing costs | 4,389 | ||||
Total Tenant Improvements and Leasing Costs | 6,752 | ||||
Property improvements — net-lease properties | 7,640 | ||||
Property improvements — operating properties | 46 | ||||
Total Turnover Costs | $ | 14,438 | |||
Maintenance Capital Expenditures | |||||
Net-lease properties | $ | 1,627 | |||
Operating properties | 1,711 | ||||
Total Maintenance Capital Expenditures | $ | 3,338 |
Investing for the Long Run® | 9 |
Investing for the Long Run® | 10 |
Consolidated Balance Sheets |
June 30, 2024 | December 31, 2023 | ||||||||||
Assets | |||||||||||
Investments in real estate: | |||||||||||
Land, buildings and improvements — net lease and other | $ | 12,341,979 | $ | 12,095,458 | |||||||
Land, buildings and improvements — operating properties | 1,238,340 | 1,256,249 | |||||||||
Net investments in finance leases and loans receivable | 667,667 | 1,514,923 | |||||||||
In-place lease intangible assets and other | 2,256,793 | 2,308,853 | |||||||||
Above-market rent intangible assets | 676,666 | 706,773 | |||||||||
Investments in real estate | 17,181,445 | 17,882,256 | |||||||||
Accumulated depreciation and amortization (a) | (3,096,516) | (3,005,479) | |||||||||
Assets held for sale, net | 7,743 | 37,122 | |||||||||
Net investments in real estate | 14,092,672 | 14,913,899 | |||||||||
Equity method investments | 356,220 | 354,261 | |||||||||
Cash and cash equivalents | 1,085,967 | 633,860 | |||||||||
Other assets, net | 1,261,222 | 1,096,474 | |||||||||
Goodwill | 973,204 | 978,289 | |||||||||
Total assets | $ | 17,769,285 | $ | 17,976,783 | |||||||
Liabilities and Equity | |||||||||||
Debt: | |||||||||||
Senior unsecured notes, net | $ | 6,519,887 | $ | 6,035,686 | |||||||
Unsecured term loans, net | 1,100,356 | 1,125,564 | |||||||||
Unsecured revolving credit facility | 15,005 | 403,785 | |||||||||
Non-recourse mortgages, net | 467,200 | 579,147 | |||||||||
Debt, net | 8,102,448 | 8,144,182 | |||||||||
Accounts payable, accrued expenses and other liabilities | 548,397 | 615,750 | |||||||||
Below-market rent and other intangible liabilities, net | 128,710 | 136,872 | |||||||||
Deferred income taxes | 155,716 | 180,650 | |||||||||
Dividends payable | 194,515 | 192,332 | |||||||||
Total liabilities | 9,129,786 | 9,269,786 | |||||||||
Preferred stock, $0.001 par value, 50,000,000 shares authorized; none issued | — | — | |||||||||
Common stock, $0.001 par value, 450,000,000 shares authorized; 218,831,869 and 218,671,874 shares, respectively, issued and outstanding | 219 | 219 | |||||||||
Additional paid-in capital | 11,782,157 | 11,784,461 | |||||||||
Distributions in excess of accumulated earnings | (2,975,236) | (2,891,424) | |||||||||
Deferred compensation obligation | 78,379 | 62,046 | |||||||||
Accumulated other comprehensive loss | (252,640) | (254,867) | |||||||||
Total stockholders' equity | 8,632,879 | 8,700,435 | |||||||||
Noncontrolling interests | 6,620 | 6,562 | |||||||||
Total equity | 8,639,499 | 8,706,997 | |||||||||
Total liabilities and equity | $ | 17,769,285 | $ | 17,976,783 |
Investing for the Long Run® | 11 |
Capitalization |
Description | Shares | Share Price | Market Value | |||||||||||||||||||||||
Equity | ||||||||||||||||||||||||||
Common equity | 218,831,869 | $ | 55.05 | $ | 12,046,694 | |||||||||||||||||||||
Preferred equity | — | |||||||||||||||||||||||||
Total Equity Market Capitalization | 12,046,694 | |||||||||||||||||||||||||
Outstanding Balance (a) | ||||||||||||||||||||||||||
Pro Rata Debt | ||||||||||||||||||||||||||
Non-recourse mortgages | 555,778 | |||||||||||||||||||||||||
Unsecured term loans (due February 14, 2028) | 571,653 | |||||||||||||||||||||||||
Unsecured term loans (due April 24, 2026) | 535,250 | |||||||||||||||||||||||||
Unsecured revolving credit facility (due February 14, 2029) | 15,005 | |||||||||||||||||||||||||
Senior unsecured notes: | ||||||||||||||||||||||||||
Due July 19, 2024 (EUR) (b) | 535,250 | |||||||||||||||||||||||||
Due February 1, 2025 (USD) | 450,000 | |||||||||||||||||||||||||
Due April 9, 2026 (EUR) | 535,250 | |||||||||||||||||||||||||
Due October 1, 2026 (USD) | 350,000 | |||||||||||||||||||||||||
Due April 15, 2027 (EUR) | 535,250 | |||||||||||||||||||||||||
Due April 15, 2028 (EUR) | 535,250 | |||||||||||||||||||||||||
Due July 15, 2029 (USD) | 325,000 | |||||||||||||||||||||||||
Due September 28, 2029 (EUR) | 160,575 | |||||||||||||||||||||||||
Due June 1, 2030 (EUR) | 562,013 | |||||||||||||||||||||||||
Due February 1, 2031 (USD) | 500,000 | |||||||||||||||||||||||||
Due February 1, 2032 (USD) | 350,000 | |||||||||||||||||||||||||
Due July 23, 2032 (EUR) | 695,825 | |||||||||||||||||||||||||
Due September 28, 2032 (EUR) | 214,100 | |||||||||||||||||||||||||
Due April 1, 2033 (USD) | 425,000 | |||||||||||||||||||||||||
Due June 30, 2034 (USD) | 400,000 | |||||||||||||||||||||||||
Total Pro Rata Debt | 8,251,199 | |||||||||||||||||||||||||
Total Capitalization | $ | 20,297,893 |
Investing for the Long Run® | 12 |
Debt Overview |
USD-Denominated | EUR-Denominated | Other Currencies (a) | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding Balance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Out-standing Balance (in USD) | Weigh-ted Avg. Interest Rate | Out-standing Balance (in USD) | Weigh-ted Avg. Interest Rate | Out-standing Balance (in USD) | Weigh-ted Avg. Interest Rate | Amount (in USD) | % of Total | Weigh-ted Avg. Interest Rate | Weigh-ted Avg. Maturity (Years) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Recourse Debt (b) (c) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed (d) | $ | 343,026 | 4.6 | % | $ | 105,054 | 4.2 | % | $ | 46,125 | 4.2 | % | $ | 494,205 | 6.0 | % | 4.5 | % | 1.6 | |||||||||||||||||||||||||||||||||||||||||||||||||
Floating | — | — | % | 61,573 | 5.5 | % | — | — | % | 61,573 | 0.7 | % | 5.5 | % | 1.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Pro Rata Non-Recourse Debt | 343,026 | 4.6 | % | 166,627 | 4.7 | % | 46,125 | 4.2 | % | 555,778 | 6.7 | % | 4.6 | % | 1.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Recourse Debt (b) (c) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed – Senior unsecured notes: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Due July 19, 2024 (e) | — | — | % | 535,250 | 2.3 | % | — | — | % | 535,250 | 6.5 | % | 2.3 | % | 0.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Due February 1, 2025 | 450,000 | 4.0 | % | — | — | % | — | — | % | 450,000 | 5.5 | % | 4.0 | % | 0.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Due April 9, 2026 | — | — | % | 535,250 | 2.3 | % | — | — | % | 535,250 | 6.5 | % | 2.3 | % | 1.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Due October 1, 2026 | 350,000 | 4.3 | % | — | — | % | — | — | % | 350,000 | 4.2 | % | 4.3 | % | 2.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Due April 15, 2027 | — | — | % | 535,250 | 2.1 | % | — | — | % | 535,250 | 6.5 | % | 2.1 | % | 2.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Due April 15, 2028 | — | — | % | 535,250 | 1.4 | % | — | — | % | 535,250 | 6.5 | % | 1.4 | % | 3.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Due July 15, 2029 | 325,000 | 3.9 | % | — | — | % | — | — | % | 325,000 | 3.9 | % | 3.9 | % | 5.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Due September 28, 2029 | — | — | % | 160,575 | 3.4 | % | — | — | % | 160,575 | 1.9 | % | 3.4 | % | 5.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Due June 1, 2030 | — | — | % | 562,013 | 1.0 | % | — | — | % | 562,013 | 6.8 | % | 1.0 | % | 5.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Due February 1, 2031 | 500,000 | 2.4 | % | — | — | % | — | — | % | 500,000 | 6.1 | % | 2.4 | % | 6.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Due February 1, 2032 | 350,000 | 2.5 | % | — | — | % | — | — | % | 350,000 | 4.2 | % | 2.5 | % | 7.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Due July 23, 2032 | — | — | % | 695,825 | 4.3 | % | — | — | % | 695,825 | 8.4 | % | 4.3 | % | 8.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Due September 28, 2032 | — | — | % | 214,100 | 3.7 | % | — | — | % | 214,100 | 2.6 | % | 3.7 | % | 8.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Due April 1, 2033 | 425,000 | 2.3 | % | — | — | % | — | — | % | 425,000 | 5.2 | % | 2.3 | % | 8.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Due June 30, 2034 | 400,000 | 5.4 | % | — | — | % | — | — | % | 400,000 | 4.9 | % | 5.4 | % | 10.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Senior Unsecured Notes | 2,800,000 | 3.5 | % | 3,773,513 | 2.4 | % | — | — | % | 6,573,513 | 79.7 | % | 2.9 | % | 4.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Swapped to Fixed: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unsecured term loans (due April 24, 2026) (f) | — | — | % | 535,250 | 4.3 | % | — | — | % | 535,250 | 6.5 | % | 4.3 | % | 1.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Floating: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unsecured term loans (due February 14, 2028) (g) | — | — | % | 230,158 | 4.6 | % | 341,495 | 6.1 | % | 571,653 | 6.9 | % | 5.5 | % | 3.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Unsecured revolving credit facility (due February 14, 2029) (h) | — | — | % | — | — | % | 15,005 | 1.1 | % | 15,005 | 0.2 | % | 1.1 | % | 4.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Recourse Debt | 2,800,000 | 3.5 | % | 4,538,921 | 2.7 | % | 356,500 | 5.8 | % | 7,695,421 | 93.3 | % | 3.2 | % | 4.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Pro Rata Debt Outstanding | $ | 3,143,026 | 3.6 | % | $ | 4,705,548 | 2.8 | % | $ | 402,625 | 5.7 | % | $ | 8,251,199 | 100.0 | % | 3.3 | % | 4.4 |
Investing for the Long Run® | 13 |
Debt Maturity |
Real Estate | Debt | |||||||||||||||||||||||||||||||||||||
Number of Properties (a) | Weighted-Average Interest Rate | Total Outstanding Balance (b) (c) | % of Total Outstanding Balance | |||||||||||||||||||||||||||||||||||
Year of Maturity | ABR (a) | Balloon | ||||||||||||||||||||||||||||||||||||
Non-Recourse Debt | ||||||||||||||||||||||||||||||||||||||
Remaining 2024 | 25 | $ | 11,914 | 3.6 | % | $ | 61,010 | $ | 61,750 | 0.7 | % | |||||||||||||||||||||||||||
2025 | 38 | 22,274 | 4.5 | % | 240,155 | 246,975 | 3.0 | % | ||||||||||||||||||||||||||||||
2026 | 36 | 25,774 | 5.1 | % | 149,671 | 163,853 | 2.0 | % | ||||||||||||||||||||||||||||||
2027 | 1 | — | 4.3 | % | 21,450 | 21,450 | 0.3 | % | ||||||||||||||||||||||||||||||
2028 | 3 | 9,433 | 5.1 | % | 43,306 | 55,621 | 0.7 | % | ||||||||||||||||||||||||||||||
2031 | 1 | 1,096 | 6.0 | % | — | 2,522 | — | % | ||||||||||||||||||||||||||||||
2033 | 1 | 1,424 | 5.6 | % | 1,671 | 3,607 | — | % | ||||||||||||||||||||||||||||||
2034 | — | — | — | % | — | — | — | % | ||||||||||||||||||||||||||||||
Total Pro Rata Non-Recourse Debt | 105 | $ | 71,915 | 4.6 | % | $ | 517,263 | 555,778 | 6.7 | % | ||||||||||||||||||||||||||||
Recourse Debt | ||||||||||||||||||||||||||||||||||||||
Fixed – Senior unsecured notes: | ||||||||||||||||||||||||||||||||||||||
Due July 19, 2024 (EUR) (d) | 2.3 | % | 535,250 | 6.5 | % | |||||||||||||||||||||||||||||||||
Due February 1, 2025 (USD) | 4.0 | % | 450,000 | 5.5 | % | |||||||||||||||||||||||||||||||||
Due April 9, 2026 (EUR) | 2.3 | % | 535,250 | 6.5 | % | |||||||||||||||||||||||||||||||||
Due October 1, 2026 (USD) | 4.3 | % | 350,000 | 4.2 | % | |||||||||||||||||||||||||||||||||
Due April 15, 2027 (EUR) | 2.1 | % | 535,250 | 6.5 | % | |||||||||||||||||||||||||||||||||
Due April 15, 2028 (EUR) | 1.4 | % | 535,250 | 6.5 | % | |||||||||||||||||||||||||||||||||
Due July 15, 2029 (USD) | 3.9 | % | 325,000 | 3.9 | % | |||||||||||||||||||||||||||||||||
Due September 28, 2029 (EUR) | 3.4 | % | 160,575 | 1.9 | % | |||||||||||||||||||||||||||||||||
Due June 1, 2030 (EUR) | 1.0 | % | 562,013 | 6.8 | % | |||||||||||||||||||||||||||||||||
Due February 1, 2031 (USD) | 2.4 | % | 500,000 | 6.1 | % | |||||||||||||||||||||||||||||||||
Due February 1, 2032 (USD) | 2.5 | % | 350,000 | 4.2 | % | |||||||||||||||||||||||||||||||||
Due July 23, 2032 (EUR) | 4.3 | % | 695,825 | 8.4 | % | |||||||||||||||||||||||||||||||||
Due September 28, 2032 (EUR) | 3.7 | % | 214,100 | 2.6 | % | |||||||||||||||||||||||||||||||||
Due April 1, 2033 (USD) | 2.3 | % | 425,000 | 5.2 | % | |||||||||||||||||||||||||||||||||
Due June 30, 2034 (USD) | 5.4 | % | 400,000 | 4.9 | % | |||||||||||||||||||||||||||||||||
Total Senior Unsecured Notes | 2.9 | % | 6,573,513 | 79.7 | % | |||||||||||||||||||||||||||||||||
Swapped to Fixed: | ||||||||||||||||||||||||||||||||||||||
Unsecured term loans (due April 24, 2026) (e) | 4.3 | % | 535,250 | 6.5 | % | |||||||||||||||||||||||||||||||||
Floating: | ||||||||||||||||||||||||||||||||||||||
Unsecured term loans (due February 14, 2028) (f) | 5.5 | % | 571,653 | 6.9 | % | |||||||||||||||||||||||||||||||||
Unsecured revolving credit facility (due February 14, 2029) (g) | 1.1 | % | 15,005 | 0.2 | % | |||||||||||||||||||||||||||||||||
Total Recourse Debt | 3.2 | % | 7,695,421 | 93.3 | % | |||||||||||||||||||||||||||||||||
Total Pro Rata Debt Outstanding | 3.3 | % | $ | 8,251,199 | 100.0 | % |
Investing for the Long Run® | 14 |
Senior Unsecured Notes |
Issuer | Senior Unsecured Notes | |||||||||||||||||||
Ratings Agency | Rating | Outlook | Rating | |||||||||||||||||
Moody's | Baa1 | Stable | Baa1 | |||||||||||||||||
Standard & Poor’s | BBB+ | Stable | BBB+ |
Covenant | Metric | Required | As of Jun. 30, 2024 | |||||||||||||||||
Limitation on the incurrence of debt | "Total Debt" / "Total Assets" | ≤ 60% | 41.4% | |||||||||||||||||
Limitation on the incurrence of secured debt | "Secured Debt" / "Total Assets" | ≤ 40% | 2.4% | |||||||||||||||||
Limitation on the incurrence of debt based on consolidated EBITDA to annual debt service charge | "Consolidated EBITDA" / "Annual Debt Service Charge" | ≥ 1.5x | 4.4x | |||||||||||||||||
Maintenance of unencumbered asset value | "Unencumbered Assets" / "Total Unsecured Debt" | ≥ 150% | 230.6% |
Investing for the Long Run® | 15 |
Investing for the Long Run® | 16 |
Investment Activity – Investment Volume |
Property Type(s) | Closing Date / Asset Completion Date | Gross Investment Amount | Investment Type | Lease Term (Years) (a) | Gross Square Footage | |||||||||||||||||||||||||||||||||||||||
Tenant / Lease Guarantor | Property Location(s) | |||||||||||||||||||||||||||||||||||||||||||
1Q24 | ||||||||||||||||||||||||||||||||||||||||||||
WM Morrison Supermarkets PLC (2 properties) (b) | Doncaster, United Kingdom | Retail | Jan-24 | $ | 30,055 | Acquisition | 14 | 93,007 | ||||||||||||||||||||||||||||||||||||
Fedrigoni S.p.A (5 properties) (b) | Various, Italy | Industrial, Warehouse | Jan-24 | 148,131 | Sale-leaseback | 20 | 1,739,312 | |||||||||||||||||||||||||||||||||||||
Hexagon Composites ASA | Salisbury, NC | Industrial | Mar-24 | 13,800 | Expansion | 15 | 125,549 | |||||||||||||||||||||||||||||||||||||
Metra S.p.A (5 properties) (b) (c) | Various, Italy (4 properties) and Laval, Canada (1 property) | Industrial, Warehouse | Mar-24 | 86,494 | Sale-leaseback | 25 | 1,081,900 | |||||||||||||||||||||||||||||||||||||
1Q24 Total | 278,480 | 21 | 3,039,768 | |||||||||||||||||||||||||||||||||||||||||
2Q24 | ||||||||||||||||||||||||||||||||||||||||||||
Danske Fragtmaend Ejendomme A/S (b) | Fredericia, Denmark | Warehouse | Apr-24 | 2,029 | Renovation | 17 | N/A | |||||||||||||||||||||||||||||||||||||
Hanesbrands Inc. | Commercial Point, OH | Warehouse | Apr-24 | 94,220 | Acquisition | 9 | 1,194,865 | |||||||||||||||||||||||||||||||||||||
Storage Space | Little Rock, AR | Self-Storage (Operating) | Apr-24 | 3,254 | Expansion | N/A | 59,472 | |||||||||||||||||||||||||||||||||||||
Belden Inc. | Tucson, AZ | Warehouse | May-24 | 38,783 | Acquisition | 10 | 302,445 | |||||||||||||||||||||||||||||||||||||
Portfolio Acquisition: | ||||||||||||||||||||||||||||||||||||||||||||
AMCP Clean Holding Company, LLC (5 properties) | Various, United States | Industrial, Warehouse | May-24 | 44,400 | Acquisition | 10 | 432,233 | |||||||||||||||||||||||||||||||||||||
Hadley Products Corporation (4 properties) | Various, United States | Industrial | May-24 | 23,330 | Acquisition | 13 | 514,462 | |||||||||||||||||||||||||||||||||||||
Cleveland-Cliffs Inc. | Sylacauga, AL | Industrial | May-24 | 5,852 | Acquisition | 13 | 111,249 | |||||||||||||||||||||||||||||||||||||
Specialty Building Products, Inc. (2 properties) | Moxee, WA and La Porte, IN | Industrial | Jun-24 | 37,019 | Acquisition | 14 | 741,870 | |||||||||||||||||||||||||||||||||||||
Portfolio Total (12 properties) | 110,601 | 12 | 1,799,814 | |||||||||||||||||||||||||||||||||||||||||
EOS Fitness OPCO Holdings, LLC (2 properties) | Mesa and Laveen, AZ | Retail | Jun-24 | 26,964 | Acquisition | 20 | 84,000 | |||||||||||||||||||||||||||||||||||||
Terran Orbital Corporation | Irvine, CA | Industrial | Jun-24 | 14,462 | Redevelopment | 10 | 94,195 | |||||||||||||||||||||||||||||||||||||
2Q24 Total | 290,313 | 12 | 3,534,791 | |||||||||||||||||||||||||||||||||||||||||
Year-to-Date Total | 568,793 | 16 | 6,574,559 |
Property Type(s) | Funded During Current Quarter | Funded Year to Date | Expected Funding Completion Date | Total Funded | Maximum Commitment | |||||||||||||||||||||||||||||||||||||||
Description | Property Location(s) | |||||||||||||||||||||||||||||||||||||||||||
Construction Loan | ||||||||||||||||||||||||||||||||||||||||||||
Southwest Corner of Las Vegas Boulevard & Harmon Avenue Retail Complex (d) | Las Vegas, NV | Retail | $ | 3,039 | $ | 4,874 | 2025 | $ | 236,261 | $ | 261,887 | |||||||||||||||||||||||||||||||||
Total | 4,874 | |||||||||||||||||||||||||||||||||||||||||||
Year-to-Date Total Investment Volume | $ | 573,667 |
Investing for the Long Run® | 17 |
Investment Activity – Capital Investments and Commitments (a) |
Primary Transaction Type | Property Type | Expected Completion / Closing Date | Additional Gross Square Footage | Lease Term (Years) (b) | Funded During Three Months Ended Jun. 30, 2024 (c) | Total Funded Through Jun. 30, 2024 | Maximum Commitment / Gross Investment Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tenant | Location | Remaining | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TWAS Holdings, LLC (4 properties) (d) | Various, US | Purchase Commitment | Retail (Car Wash) | Q3 2024 | 14,420 | 19 | $ | — | $ | — | $ | 20,317 | $ | 20,317 | ||||||||||||||||||||||||||||||||||||||||||||||||
Unidentified | Atlanta, GA | Redevelopment | Warehouse | Q4 2024 | 213,834 | N/A | 1,430 | 2,504 | 15,148 | 17,652 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Expected Completion Date 2024 Total | 228,254 | 19 | 1,430 | 2,504 | 35,465 | 37,969 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ZF Friedrichshafen AG (e) | Washington, MI | Redevelopment | Research and Development | Q1 2025 | 81,200 | 20 | 6,655 | 12,379 | 34,740 | 47,823 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Sumitomo Heavy Industries, LTD. | Bedford, MA | Redevelopment | Research and Development | Q3 2025 | N/A | 15 | 2,023 | 2,023 | 42,117 | 44,140 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Fraikin SAS (f) | Various, France | Renovation | Industrial | Q4 2025 | N/A | 18 | — | 2,075 | 5,311 | 7,386 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Expected Completion Date 2025 Total | 81,200 | 18 | 8,678 | 16,477 | 82,168 | 99,349 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Investments and Commitments Total | 309,454 | 18 | $ | 10,108 | $ | 18,981 | $ | 117,633 | $ | 137,318 |
Investing for the Long Run® | 18 |
Investment Activity – Dispositions |
Tenant / Lease Guarantor | Property Location(s) | Gross Sale Price | Closing Date | Property Type(s) | Gross Square Footage | |||||||||||||||||||||||||||
1Q24 | ||||||||||||||||||||||||||||||||
State of Andalusia (70 properties) (a) | Various, Spain | $ | 359,340 | Jan-24 | Office | 2,788,704 | ||||||||||||||||||||||||||
Cargotec Corporation (a) | Tampere, Finland | 28,444 | Jan-24 | Office | 183,568 | |||||||||||||||||||||||||||
Vacant | Fairfax, VA | 8,198 | Jan-24 | Retail | 103,277 | |||||||||||||||||||||||||||
Vacant (formerly Pendragon PLC) (a) | Aylesbury, United Kingdom | 5,258 | Feb-24 | Retail | 27,355 | |||||||||||||||||||||||||||
Vacant (formerly Pendragon PLC) (a) | Peterlee, United Kingdom | 1,085 | Feb-24 | Retail | 13,719 | |||||||||||||||||||||||||||
U-Haul Moving Partners Inc. and Mercury Partners, LP (78 properties) | Various, United States | 464,104 | Feb-24 | Self-Storage (Net Lease) | 3,996,703 | |||||||||||||||||||||||||||
Sec of State Communities and Local Gov (a) | Salford, United Kingdom | 22,750 | Feb-24 | Office | 211,367 | |||||||||||||||||||||||||||
1Q24 Total | 889,179 | 7,324,693 | ||||||||||||||||||||||||||||||
2Q24 | ||||||||||||||||||||||||||||||||
Vacant (former Prima Wawona Packing Co., LLC) (2 properties) | Sanger and Kerman, CA | 16,500 | Apr-24; May-24 | Industrial | 370,051 | |||||||||||||||||||||||||||
Pendragon PLC (a) | Stourbridge, United Kingdom | 1,554 | Apr-24 | Retail | 6,796 | |||||||||||||||||||||||||||
Silgan Containers Manufacturing Corp. (3 properties) | Various, United States | 24,000 | Apr-24 | Industrial | 402,893 | |||||||||||||||||||||||||||
Clayco, Inc. (2 properties) | St. Louis, MO | 14,126 | Jun-24 | Office | 130,170 | |||||||||||||||||||||||||||
Cornerstone Building Brands, Inc. (a) | Calgary, Canada | 7,275 | Jun-24 | Industrial | 302,884 | |||||||||||||||||||||||||||
Marriott Corporation | Sacramento, CA | 20,300 | Jun-24 | Hotel (Operating) | 82,905 | |||||||||||||||||||||||||||
Banco Santander, S.A. (a) | Monchengladbach, Germany | 48,173 | Jun-24 | Office | 212,000 | |||||||||||||||||||||||||||
Vacant | Chandler, AZ | 20,300 | Jun-24 | Industrial | 355,307 | |||||||||||||||||||||||||||
2Q24 Total | 152,228 | 1,863,006 | ||||||||||||||||||||||||||||||
Year-to-Date Total Dispositions | $ | 1,041,407 | 9,187,699 |
Investing for the Long Run® | 19 |
Joint Ventures |
Joint Venture or JV (Principal Tenant) | JV Partnership | Consolidated | Pro Rata (a) | |||||||||||||||||||||||||||||||||||
Asset Type | WPC % | Debt Outstanding (b) | ABR | Debt Outstanding (c) | ABR | |||||||||||||||||||||||||||||||||
Unconsolidated Joint Venture (Equity Method Investment) (d) | ||||||||||||||||||||||||||||||||||||||
Harmon Retail Corner | Common equity interest | 15.00% | $ | 143,000 | $ | — | $ | 21,450 | $ | — | ||||||||||||||||||||||||||||
Kesko Senukai (e) | Net lease | 70.00% | 97,501 | 16,050 | 68,251 | 11,235 | ||||||||||||||||||||||||||||||||
Johnson Self Storage | Self-storage operating | 90.00% | — | N/A | — | N/A | ||||||||||||||||||||||||||||||||
Total Unconsolidated Joint Ventures | 240,501 | 16,050 | 89,701 | 11,235 | ||||||||||||||||||||||||||||||||||
Consolidated Joint Ventures | ||||||||||||||||||||||||||||||||||||||
COOP Ost SA (e) | Net lease | 90.10% | 51,193 | 6,434 | 46,125 | 5,797 | ||||||||||||||||||||||||||||||||
Fentonir Trading & Investments Limited (e) | Net lease | 94.90% | — | 8,463 | — | 8,032 | ||||||||||||||||||||||||||||||||
McCoy-Rockford, Inc. | Net lease | 90.00% | — | 948 | — | 853 | ||||||||||||||||||||||||||||||||
State of Iowa Board of Regents | Net lease | 90.00% | — | 643 | — | 579 | ||||||||||||||||||||||||||||||||
Total Consolidated Joint Ventures | 51,193 | 16,488 | 46,125 | 15,261 | ||||||||||||||||||||||||||||||||||
Total Unconsolidated and Consolidated Joint Ventures | $ | 291,694 | $ | 32,538 | $ | 135,826 | $ | 26,496 |
Investing for the Long Run® | 20 |
Top 25 Tenants |
Tenant / Lease Guarantor | Description | Number of Properties | ABR | ABR % | Weighted-Average Lease Term (Years) | |||||||||||||||||||||||||||
Apotex Pharmaceutical Holdings Inc. (a) | Pharmaceutical R&D and manufacturing properties in the Greater Toronto Area leased to generic drug manufacturer | 11 | $ | 32,473 | 2.5 | % | 18.7 | |||||||||||||||||||||||||
Metro Cash & Carry Italia S.p.A. (b) | Business-to-business retail stores in Italy leased to cash and carry wholesaler | 19 | 27,838 | 2.1 | % | 4.3 | ||||||||||||||||||||||||||
Extra Space Storage, Inc. | Net lease self-storage properties in the U.S. leased to publicly traded self-storage REIT | 27 | 25,808 | 2.0 | % | 19.8 | ||||||||||||||||||||||||||
Hellweg Die Profi-Baumärkte GmbH & Co. KG (b) (c) | Retail properties in Germany leased to German DIY retailer | 35 | 25,302 | 2.0 | % | 19.7 | ||||||||||||||||||||||||||
ABC Technologies Holdings Inc. (a) (d) | Automotive parts manufacturing properties in the U.S., Canada and Mexico leased to OEM supplier | 23 | 24,978 | 1.9 | % | 18.8 | ||||||||||||||||||||||||||
Fortenova Grupa d.d. (b) | Grocery stores and warehouses in Croatia leased to European food retailer | 19 | 24,587 | 1.9 | % | 9.8 | ||||||||||||||||||||||||||
OBI Group (b) | Retail properties in Poland leased to German DIY retailer | 26 | 24,421 | 1.9 | % | 6.9 | ||||||||||||||||||||||||||
Nord Anglia Education, Inc. | K-12 private schools in Orlando, Miami and Houston leased to international day and boarding school operator | 3 | 22,963 | 1.8 | % | 19.2 | ||||||||||||||||||||||||||
Fedrigoni S.p.A (b) | Industrial and warehouse facilities in Germany, Italy and Spain leased to global manufacturer of premium packaging and labels | 16 | 22,695 | 1.8 | % | 19.4 | ||||||||||||||||||||||||||
Eroski Sociedad Cooperative (b) | Grocery stores and warehouses in Spain leased to Spanish food retailer | 63 | 21,140 | 1.6 | % | 11.7 | ||||||||||||||||||||||||||
Top 10 Total | 242 | 252,205 | 19.5 | % | 14.9 | |||||||||||||||||||||||||||
Quikrete Holdings, Inc. (a) | Industrial facilities in the U.S. and Canada leased to concrete and building products manufacturer | 27 | 20,255 | 1.6 | % | 19.0 | ||||||||||||||||||||||||||
Advance Auto Parts, Inc. | Distribution facilities in the U.S. leased to automotive aftermarket parts provider | 29 | 19,851 | 1.5 | % | 8.6 | ||||||||||||||||||||||||||
Berry Global Inc. | Manufacturing facilities in the U.S. leased to international producer and supplier of packaging solutions | 8 | 19,504 | 1.5 | % | 14.2 | ||||||||||||||||||||||||||
Pendragon PLC (b) | Dealerships in the United Kingdom leased to automotive retailer | 55 | 19,210 | 1.5 | % | 12.8 | ||||||||||||||||||||||||||
True Value Company, LLC | Distribution facilities and manufacturing facility in the U.S. leased to global hardware wholesaler | 9 | 18,707 | 1.4 | % | 14.1 | ||||||||||||||||||||||||||
Kesko Senukai (b) | Distribution facilities and retail properties in Lithuania, Estonia and Latvia leased to European DIY retailer | 20 | 17,819 | 1.4 | % | 7.6 | ||||||||||||||||||||||||||
Hearthside Food Solutions LLC | Production, packaging and distribution facilities in the U.S. leased to North American contract food manufacturer | 18 | 16,786 | 1.3 | % | 18.1 | ||||||||||||||||||||||||||
Koninklijke Jumbo Food Groep B.V (b) | Logistics and cold storage warehouse facilities in the Netherlands leased to European supermarket chain | 5 | 14,856 | 1.2 | % | 4.7 | ||||||||||||||||||||||||||
Danske Fragtmaend Ejendomme A/S (b) | Distribution facilities in Denmark leased to Danish freight company | 15 | 13,526 | 1.0 | % | 12.6 | ||||||||||||||||||||||||||
Dick’s Sporting Goods, Inc. | Retail properties and single distribution facility in the U.S. leased to sporting goods retailer | 9 | 12,955 | 1.0 | % | 6.0 | ||||||||||||||||||||||||||
Top 20 Total | 437 | 425,674 | 32.9 | % | 13.7 | |||||||||||||||||||||||||||
Intergamma Bouwmarkten B.V. (b) | Retail properties in the Netherlands leased to European DIY retailer | 36 | 12,770 | 1.0 | % | 9.1 | ||||||||||||||||||||||||||
Lineage | Cold storage warehouse facilities in the Los Angeles and San Francisco areas leased to cold storage REIT | 4 | 11,573 | 0.9 | % | 6.4 | ||||||||||||||||||||||||||
Henkel AG & Co. KGaA | Distribution facility in Kentucky leased to global provider of consumer products and adhesives | 1 | 11,374 | 0.9 | % | 17.8 | ||||||||||||||||||||||||||
FM Logistics Corporate SAS (b) | Logistics facilities in the Czech Republic, Poland and Slovakia leased to French third-party logistics provider | 4 | 11,000 | 0.8 | % | 1.3 | ||||||||||||||||||||||||||
Harbor Freight Tools USA, Inc. | Distribution facilities in South Carolina leased to U.S. tool and equipment retailer | 3 | 10,862 | 0.8 | % | 14.7 | ||||||||||||||||||||||||||
Top 25 Total (e) | 485 | $ | 483,253 | 37.3 | % | 13.3 |
Investing for the Long Run® | 21 |
Diversification by Property Type |
Total Net-Lease Portfolio | ||||||||||||||||||||||||||
Property Type | ABR | ABR % | Square Footage (a) | Square Footage % | ||||||||||||||||||||||
U.S. | ||||||||||||||||||||||||||
Industrial | $ | 319,469 | 24.7 | % | 53,154 | 31.3 | % | |||||||||||||||||||
Warehouse | 225,607 | 17.4 | % | 44,610 | 26.2 | % | ||||||||||||||||||||
Retail (b) | 78,600 | 6.1 | % | 3,643 | 2.1 | % | ||||||||||||||||||||
Other (c) | 139,197 | 10.7 | % | 7,955 | 4.7 | % | ||||||||||||||||||||
U.S. Total | 762,873 | 58.9 | % | 109,362 | 64.3 | % | ||||||||||||||||||||
International | ||||||||||||||||||||||||||
Industrial | 138,933 | 10.7 | % | 18,776 | 11.0 | % | ||||||||||||||||||||
Warehouse | 143,277 | 11.1 | % | 21,916 | 12.9 | % | ||||||||||||||||||||
Retail (b) | 197,972 | 15.3 | % | 17,497 | 10.3 | % | ||||||||||||||||||||
Other (c) | 51,466 | 4.0 | % | 2,582 | 1.5 | % | ||||||||||||||||||||
International Total | 531,648 | 41.1 | % | 60,771 | 35.7 | % | ||||||||||||||||||||
Total | ||||||||||||||||||||||||||
Industrial | 458,402 | 35.4 | % | 71,930 | 42.3 | % | ||||||||||||||||||||
Warehouse | 368,884 | 28.5 | % | 66,526 | 39.1 | % | ||||||||||||||||||||
Retail (b) | 276,572 | 21.4 | % | 21,140 | 12.4 | % | ||||||||||||||||||||
Other (c) | 190,663 | 14.7 | % | 10,537 | 6.2 | % | ||||||||||||||||||||
Total (d) | $ | 1,294,521 | 100.0 | % | 170,133 | 100.0 | % |
Investing for the Long Run® | 22 |
Diversification by Tenant Industry |
Total Net-Lease Portfolio | ||||||||||||||||||||||||||
Industry Type | ABR | ABR % | Square Footage | Square Footage % | ||||||||||||||||||||||
Retail Stores (a) | $ | 300,723 | 23.2 | % | 37,095 | 21.8 | % | |||||||||||||||||||
Beverage and Food | 108,156 | 8.4 | % | 14,988 | 8.8 | % | ||||||||||||||||||||
Consumer Services | 104,498 | 8.1 | % | 5,735 | 3.4 | % | ||||||||||||||||||||
Automotive | 98,546 | 7.6 | % | 15,017 | 8.8 | % | ||||||||||||||||||||
Grocery | 84,403 | 6.5 | % | 7,406 | 4.4 | % | ||||||||||||||||||||
Healthcare and Pharmaceuticals | 72,451 | 5.6 | % | 6,594 | 3.9 | % | ||||||||||||||||||||
Containers, Packaging, and Glass | 58,392 | 4.5 | % | 9,966 | 5.9 | % | ||||||||||||||||||||
Capital Equipment | 50,463 | 3.9 | % | 8,858 | 5.2 | % | ||||||||||||||||||||
Cargo Transportation | 47,322 | 3.7 | % | 7,723 | 4.5 | % | ||||||||||||||||||||
Construction and Building | 45,681 | 3.5 | % | 8,443 | 5.0 | % | ||||||||||||||||||||
Durable Consumer Goods | 44,461 | 3.4 | % | 9,715 | 5.7 | % | ||||||||||||||||||||
Hotel and Leisure | 43,506 | 3.4 | % | 2,137 | 1.3 | % | ||||||||||||||||||||
Non-Durable Consumer Goods | 38,630 | 3.0 | % | 8,000 | 4.7 | % | ||||||||||||||||||||
Chemicals, Plastics, and Rubber | 33,783 | 2.6 | % | 6,131 | 3.6 | % | ||||||||||||||||||||
High Tech Industries | 32,655 | 2.5 | % | 4,479 | 2.6 | % | ||||||||||||||||||||
Business Services | 31,566 | 2.4 | % | 3,415 | 2.0 | % | ||||||||||||||||||||
Metals | 28,735 | 2.2 | % | 4,976 | 2.9 | % | ||||||||||||||||||||
Wholesale | 14,823 | 1.2 | % | 2,614 | 1.5 | % | ||||||||||||||||||||
Telecommunications | 14,266 | 1.1 | % | 1,500 | 0.9 | % | ||||||||||||||||||||
Other (b) | 41,461 | 3.2 | % | 5,341 | 3.1 | % | ||||||||||||||||||||
Total (c) | $ | 1,294,521 | 100.0 | % | 170,133 | 100.0 | % |
Investing for the Long Run® | 23 |
Diversification by Geography |
Total Net-Lease Portfolio | ||||||||||||||||||||||||||
Region | ABR | ABR % | Square Footage (a) | Square Footage % | ||||||||||||||||||||||
U.S. | ||||||||||||||||||||||||||
Midwest | ||||||||||||||||||||||||||
Illinois | $ | 62,230 | 4.8 | % | 9,892 | 5.8 | % | |||||||||||||||||||
Ohio | 40,595 | 3.1 | % | 8,275 | 4.9 | % | ||||||||||||||||||||
Indiana | 31,556 | 2.4 | % | 5,516 | 3.2 | % | ||||||||||||||||||||
Michigan | 25,262 | 2.0 | % | 4,423 | 2.6 | % | ||||||||||||||||||||
Wisconsin | 15,423 | 1.2 | % | 2,904 | 1.7 | % | ||||||||||||||||||||
Other (b) | 47,983 | 3.7 | % | 7,127 | 4.2 | % | ||||||||||||||||||||
Total Midwest | 223,049 | 17.2 | % | 38,137 | 22.4 | % | ||||||||||||||||||||
South | ||||||||||||||||||||||||||
Texas | 79,957 | 6.2 | % | 10,426 | 6.1 | % | ||||||||||||||||||||
Florida | 36,711 | 2.8 | % | 3,134 | 1.8 | % | ||||||||||||||||||||
Georgia | 25,413 | 2.0 | % | 4,067 | 2.4 | % | ||||||||||||||||||||
Tennessee | 23,900 | 1.9 | % | 3,864 | 2.3 | % | ||||||||||||||||||||
Alabama | 22,549 | 1.7 | % | 3,394 | 2.0 | % | ||||||||||||||||||||
Other (b) | 15,880 | 1.2 | % | 2,300 | 1.4 | % | ||||||||||||||||||||
Total South | 204,410 | 15.8 | % | 27,185 | 16.0 | % | ||||||||||||||||||||
East | ||||||||||||||||||||||||||
North Carolina | 36,998 | 2.9 | % | 8,226 | 4.8 | % | ||||||||||||||||||||
Pennsylvania | 31,028 | 2.4 | % | 3,375 | 2.0 | % | ||||||||||||||||||||
New York | 20,492 | 1.6 | % | 2,220 | 1.3 | % | ||||||||||||||||||||
South Carolina | 19,356 | 1.5 | % | 4,952 | 2.9 | % | ||||||||||||||||||||
Kentucky | 18,645 | 1.4 | % | 3,141 | 1.8 | % | ||||||||||||||||||||
Massachusetts | 16,248 | 1.3 | % | 1,188 | 0.7 | % | ||||||||||||||||||||
New Jersey | 14,364 | 1.1 | % | 835 | 0.5 | % | ||||||||||||||||||||
Other (b) | 33,516 | 2.6 | % | 5,219 | 3.1 | % | ||||||||||||||||||||
Total East | 190,647 | 14.8 | % | 29,156 | 17.1 | % | ||||||||||||||||||||
West | ||||||||||||||||||||||||||
California | 55,782 | 4.3 | % | 5,669 | 3.3 | % | ||||||||||||||||||||
Arizona | 20,880 | 1.6 | % | 2,269 | 1.4 | % | ||||||||||||||||||||
Utah | 14,755 | 1.1 | % | 2,021 | 1.2 | % | ||||||||||||||||||||
Other (b) | 53,350 | 4.1 | % | 4,925 | 2.9 | % | ||||||||||||||||||||
Total West | 144,767 | 11.1 | % | 14,884 | 8.8 | % | ||||||||||||||||||||
U.S. Total | 762,873 | 58.9 | % | 109,362 | 64.3 | % | ||||||||||||||||||||
International | ||||||||||||||||||||||||||
Germany | 61,629 | 4.8 | % | 6,323 | 3.7 | % | ||||||||||||||||||||
The Netherlands | 60,852 | 4.7 | % | 7,054 | 4.1 | % | ||||||||||||||||||||
Poland | 59,599 | 4.6 | % | 8,157 | 4.8 | % | ||||||||||||||||||||
Italy | 58,750 | 4.5 | % | 8,183 | 4.8 | % | ||||||||||||||||||||
Canada (c) | 51,617 | 4.0 | % | 4,804 | 2.8 | % | ||||||||||||||||||||
United Kingdom | 47,318 | 3.7 | % | 4,266 | 2.5 | % | ||||||||||||||||||||
Spain | 35,172 | 2.7 | % | 3,073 | 1.8 | % | ||||||||||||||||||||
Croatia | 25,414 | 2.0 | % | 2,063 | 1.2 | % | ||||||||||||||||||||
Denmark | 24,792 | 1.9 | % | 3,002 | 1.8 | % | ||||||||||||||||||||
France | 21,913 | 1.7 | % | 1,679 | 1.0 | % | ||||||||||||||||||||
Mexico | 13,592 | 1.1 | % | 2,489 | 1.5 | % | ||||||||||||||||||||
Lithuania | 13,410 | 1.0 | % | 1,640 | 1.0 | % | ||||||||||||||||||||
Other (d) | 57,590 | 4.4 | % | 8,038 | 4.7 | % | ||||||||||||||||||||
International Total | 531,648 | 41.1 | % | 60,771 | 35.7 | % | ||||||||||||||||||||
Total (e) | $ | 1,294,521 | 100.0 | % | 170,133 | 100.0 | % |
Investing for the Long Run® | 24 |
Contractual Rent Increases |
Total Net-Lease Portfolio | ||||||||||||||||||||||||||
Rent Adjustment Measure | ABR | ABR % | Square Footage | Square Footage % | ||||||||||||||||||||||
Uncapped CPI | $ | 432,051 | 33.4 | % | 44,577 | 26.2 | % | |||||||||||||||||||
Capped CPI | 257,649 | 19.9 | % | 38,177 | 22.4 | % | ||||||||||||||||||||
CPI-linked | 689,700 | 53.3 | % | 82,754 | 48.6 | % | ||||||||||||||||||||
Fixed | 566,418 | 43.7 | % | 82,844 | 48.7 | % | ||||||||||||||||||||
Other (a) | 33,353 | 2.6 | % | 2,235 | 1.3 | % | ||||||||||||||||||||
None | 5,050 | 0.4 | % | 272 | 0.2 | % | ||||||||||||||||||||
Vacant | — | — | % | 2,028 | 1.2 | % | ||||||||||||||||||||
Total (b) | $ | 1,294,521 | 100.0 | % | 170,133 | 100.0 | % |
Investing for the Long Run® | 25 |
Same-Store Analysis |
ABR | |||||||||||||||||||||||
As of | |||||||||||||||||||||||
Jun. 30, 2024 | Jun. 30, 2023 | Increase | % Increase | ||||||||||||||||||||
Property Type | |||||||||||||||||||||||
Industrial | $ | 409,252 | $ | 396,953 | $ | 12,299 | 3.1 | % | |||||||||||||||
Warehouse | 328,222 | 321,607 | 6,615 | 2.1 | % | ||||||||||||||||||
Retail (a) | 245,754 | 237,362 | 8,392 | 3.5 | % | ||||||||||||||||||
Other (b) | 185,022 | 179,861 | 5,161 | 2.9 | % | ||||||||||||||||||
Total | $ | 1,168,250 | $ | 1,135,783 | $ | 32,467 | 2.9 | % | |||||||||||||||
Rent Adjustment Measure | |||||||||||||||||||||||
Uncapped CPI | $ | 406,534 | $ | 390,536 | $ | 15,998 | 4.1 | % | |||||||||||||||
Capped CPI | 218,777 | 213,262 | 5,515 | 2.6 | % | ||||||||||||||||||
CPI-linked | 625,311 | 603,798 | 21,513 | 3.6 | % | ||||||||||||||||||
Fixed | 506,771 | 496,589 | 10,182 | 2.1 | % | ||||||||||||||||||
Other (c) | 32,278 | 31,506 | 772 | 2.5 | % | ||||||||||||||||||
None | 3,890 | 3,890 | — | — | % | ||||||||||||||||||
Total | $ | 1,168,250 | $ | 1,135,783 | $ | 32,467 | 2.9 | % | |||||||||||||||
Geography | |||||||||||||||||||||||
U.S. | $ | 691,589 | $ | 674,696 | $ | 16,893 | 2.5 | % | |||||||||||||||
Europe | 404,217 | 390,706 | 13,511 | 3.5 | % | ||||||||||||||||||
Other International (d) | 72,444 | 70,381 | 2,063 | 2.9 | % | ||||||||||||||||||
Total | $ | 1,168,250 | $ | 1,135,783 | $ | 32,467 | 2.9 | % | |||||||||||||||
Same-Store Portfolio Summary | |||||||||||||||||||||||
Number of properties | 1,153 | ||||||||||||||||||||||
Square footage (in thousands) | 149,089 |
Investing for the Long Run® | 26 |
Same-Store Pro Rata Rental Income | |||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||
Jun. 30, 2024 | Jun. 30, 2023 | Increase | % Increase | ||||||||||||||||||||
Property Type | |||||||||||||||||||||||
Industrial | $ | 102,190 | $ | 101,845 | $ | 345 | 0.3 | % | |||||||||||||||
Warehouse | 84,264 | 84,818 | (554) | (0.7) | % | ||||||||||||||||||
Retail (a) | 65,653 | 66,595 | (942) | (1.4) | % | ||||||||||||||||||
Other (b) | 41,646 | 41,551 | 95 | 0.2 | % | ||||||||||||||||||
Total | $ | 293,753 | $ | 294,809 | $ | (1,056) | (0.4) | % | |||||||||||||||
Rent Adjustment Measure | |||||||||||||||||||||||
Uncapped CPI | $ | 105,619 | $ | 106,116 | $ | (497) | (0.5) | % | |||||||||||||||
Capped CPI | 55,240 | 53,809 | 1,431 | 2.7 | % | ||||||||||||||||||
CPI-linked | 160,859 | 159,925 | 934 | 0.6 | % | ||||||||||||||||||
Fixed | 123,464 | 124,673 | (1,209) | (1.0) | % | ||||||||||||||||||
Other (c) | 8,266 | 8,361 | (95) | (1.1) | % | ||||||||||||||||||
None | 1,164 | 1,850 | (686) | (37.1) | % | ||||||||||||||||||
Total | $ | 293,753 | $ | 294,809 | $ | (1,056) | (0.4) | % | |||||||||||||||
Geography | |||||||||||||||||||||||
U.S. | $ | 173,660 | $ | 174,498 | $ | (838) | (0.5) | % | |||||||||||||||
Europe | 103,564 | 104,231 | (667) | (0.6) | % | ||||||||||||||||||
Other International (d) | 16,529 | 16,080 | 449 | 2.8 | % | ||||||||||||||||||
Total | $ | 293,753 | $ | 294,809 | $ | (1,056) | (0.4) | % | |||||||||||||||
Same-Store Portfolio Summary | |||||||||||||||||||||||
Number of properties | 1,183 | ||||||||||||||||||||||
Square footage (in thousands) | 155,824 |
Investing for the Long Run® | 27 |
Three Months Ended | |||||||||||
Jun. 30, 2024 | Jun. 30, 2023 | ||||||||||
Consolidated Lease Revenues | |||||||||||
Total lease revenues – as reported | $ | 324,104 | $ | 369,124 | |||||||
Income from finance leases and loans receivable | 14,961 | 27,311 | |||||||||
Less: Reimbursable tenant costs – as reported | (14,004) | (20,523) | |||||||||
Less: Income from secured loans receivable | — | (1,188) | |||||||||
325,061 | 374,724 | ||||||||||
Adjustments for Pro Rata Ownership of Real Estate Joint Ventures: | |||||||||||
Add: Pro rata share of adjustments from equity method investments | 3,572 | 4,146 | |||||||||
Less: Pro rata share of adjustments for noncontrolling interests | (203) | (321) | |||||||||
3,369 | 3,825 | ||||||||||
Adjustments for Pro Rata Non-Cash Items: | |||||||||||
Less: Straight-line and other leasing and financing adjustments | (15,310) | (19,086) | |||||||||
Add: Above- and below-market rent intangible lease amortization | 5,766 | 8,824 | |||||||||
Less: Adjustments for pro rata ownership | (1,070) | (1,763) | |||||||||
(10,614) | (12,025) | ||||||||||
Adjustment to normalize for (i) properties not continuously owned since April 1, 2023 and (ii) constant currency presentation for prior year quarter (e) | (24,063) | (71,715) | |||||||||
Same-Store Pro Rata Rental Income | $ | 293,753 | $ | 294,809 |
Investing for the Long Run® | 28 |
Leasing Activity |
Lease Renewals and Extensions (a) | Property and Tenant Improvements (c) | Leasing Commissions | ||||||||||||||||||||||||||||||||||||||||||||||||
ABR | ||||||||||||||||||||||||||||||||||||||||||||||||||
Property Type | Square Feet | Number of Leases | Prior Lease | New Lease (b) | Rent Recapture | Incremental Lease Term | ||||||||||||||||||||||||||||||||||||||||||||
Industrial | 961,478 | 4 | $ | 4,456 | $ | 5,227 | 117.3 | % | $ | 1,452 | $ | — | 3.8 years | |||||||||||||||||||||||||||||||||||||
Warehouse | — | — | — | — | — | % | — | — | N/A | |||||||||||||||||||||||||||||||||||||||||
Retail | 105,932 | 2 | 1,683 | 1,868 | 111.0 | % | 11,712 | 202 | 13.7 years | |||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | % | — | — | N/A | |||||||||||||||||||||||||||||||||||||||||
Total / Weighted Average (d) | 1,067,410 | 6 | $ | 6,139 | $ | 7,095 | 115.6 | % | $ | 13,164 | $ | 202 | 6.5 years | |||||||||||||||||||||||||||||||||||||
Q2 Summary | ||||||||||||||||||||||||||||||||||||||||||||||||||
Prior Lease ABR (% of Total Portfolio) | 0.5 | % |
New Leases | Property and Tenant Improvements (c) | Leasing Commissions | ||||||||||||||||||||||||||||||||||||
ABR | ||||||||||||||||||||||||||||||||||||||
Property Type | Square Feet | Number of Leases | New Lease (b) | New Lease Term | ||||||||||||||||||||||||||||||||||
Industrial (e) | 202,448 | 5 | $ | 2,106 | $ | 1,795 | $ | 970 | 7.6 years | |||||||||||||||||||||||||||||
Warehouse | — | — | — | — | — | N/A | ||||||||||||||||||||||||||||||||
Retail | — | — | — | — | — | N/A | ||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | N/A | ||||||||||||||||||||||||||||||||
Total / Weighted Average (f) | 202,448 | 5 | $ | 2,106 | $ | 1,795 | $ | 970 | 7.6 years |
Investing for the Long Run® | 29 |
Lease Expirations |
Year of Lease Expiration (a) | Number of Leases Expiring | Number of Tenants with Leases Expiring | ABR | ABR % | Square Footage | Square Footage % | ||||||||||||||||||||||||||||||||
Remaining 2024 | 12 | 11 | $ | 11,499 | 0.9 | % | 1,826 | 1.1 | % | |||||||||||||||||||||||||||||
2025 | 34 | 16 | 42,836 | 3.3 | % | 5,621 | 3.3 | % | ||||||||||||||||||||||||||||||
2026 | 38 | 29 | 59,980 | 4.6 | % | 8,539 | 5.0 | % | ||||||||||||||||||||||||||||||
2027 | 43 | 26 | 62,471 | 4.8 | % | 7,149 | 4.2 | % | ||||||||||||||||||||||||||||||
2028 | 41 | 25 | 53,893 | 4.2 | % | 4,465 | 2.6 | % | ||||||||||||||||||||||||||||||
2029 | 62 | 35 | 76,721 | 5.9 | % | 9,421 | 5.5 | % | ||||||||||||||||||||||||||||||
2030 | 33 | 29 | 36,978 | 2.9 | % | 3,964 | 2.3 | % | ||||||||||||||||||||||||||||||
2031 | 36 | 20 | 68,132 | 5.3 | % | 8,448 | 5.0 | % | ||||||||||||||||||||||||||||||
2032 | 39 | 20 | 41,739 | 3.2 | % | 5,835 | 3.4 | % | ||||||||||||||||||||||||||||||
2033 | 29 | 22 | 77,795 | 6.0 | % | 11,791 | 6.9 | % | ||||||||||||||||||||||||||||||
2034 | 56 | 25 | 79,459 | 6.1 | % | 9,509 | 5.6 | % | ||||||||||||||||||||||||||||||
2035 | 16 | 14 | 30,481 | 2.4 | % | 5,572 | 3.3 | % | ||||||||||||||||||||||||||||||
2036 | 44 | 18 | 69,813 | 5.4 | % | 10,827 | 6.4 | % | ||||||||||||||||||||||||||||||
2037 | 27 | 15 | 35,456 | 2.7 | % | 4,665 | 2.8 | % | ||||||||||||||||||||||||||||||
Thereafter (>2037) | 269 | 116 | 547,268 | 42.3 | % | 70,473 | 41.4 | % | ||||||||||||||||||||||||||||||
Vacant | — | — | — | — | % | 2,028 | 1.2 | % | ||||||||||||||||||||||||||||||
Total (b) | 779 | $ | 1,294,521 | 100.0 | % | 170,133 | 100.0 | % |
Investing for the Long Run® | 30 |
Self-Storage Operating Properties Portfolio |
State / District | Number of Properties | Number of Units | Square Footage | Square Footage % | Period End Occupancy | |||||||||||||||||||||||||||
Florida | 22 | 16,350 | 1,844 | 28.1 | % | 90.8 | % | |||||||||||||||||||||||||
Texas | 14 | 8,111 | 995 | 15.2 | % | 86.1 | % | |||||||||||||||||||||||||
California | 10 | 6,577 | 860 | 13.1 | % | 93.9 | % | |||||||||||||||||||||||||
Illinois | 10 | 4,821 | 665 | 10.2 | % | 88.7 | % | |||||||||||||||||||||||||
South Carolina | 6 | 3,722 | 377 | 5.7 | % | 95.9 | % | |||||||||||||||||||||||||
Georgia | 5 | 2,060 | 250 | 3.8 | % | 88.9 | % | |||||||||||||||||||||||||
North Carolina | 4 | 2,842 | 301 | 4.6 | % | 94.5 | % | |||||||||||||||||||||||||
Nevada | 3 | 2,423 | 243 | 3.7 | % | 90.3 | % | |||||||||||||||||||||||||
Delaware | 3 | 1,678 | 241 | 3.7 | % | 93.6 | % | |||||||||||||||||||||||||
Hawaii | 2 | 956 | 95 | 1.5 | % | 94.9 | % | |||||||||||||||||||||||||
Tennessee | 2 | 887 | 122 | 1.9 | % | 89.0 | % | |||||||||||||||||||||||||
Washington, DC | 1 | 880 | 67 | 1.0 | % | 92.7 | % | |||||||||||||||||||||||||
Arkansas | 1 | 858 | 115 | 1.8 | % | 72.5 | % | |||||||||||||||||||||||||
New York | 1 | 793 | 61 | 0.9 | % | 82.8 | % | |||||||||||||||||||||||||
Kentucky | 1 | 762 | 121 | 1.8 | % | 96.3 | % | |||||||||||||||||||||||||
Louisiana | 1 | 541 | 59 | 0.9 | % | 88.0 | % | |||||||||||||||||||||||||
Massachusetts | 1 | 482 | 58 | 0.9 | % | 90.9 | % | |||||||||||||||||||||||||
Oregon | 1 | 442 | 40 | 0.6 | % | 92.3 | % | |||||||||||||||||||||||||
Missouri | 1 | 329 | 41 | 0.6 | % | 88.5 | % | |||||||||||||||||||||||||
Total (a) | 89 | 55,514 | 6,555 | 100.0 | % | 90.5 | % |
Investing for the Long Run® | 31 |
Investing for the Long Run® | 32 |
Normalized Pro Rata Cash NOI |
Three Months Ended Jun. 30, 2024 | |||||
Consolidated Lease Revenues | |||||
Total lease revenues – as reported | $ | 324,104 | |||
Income from finance leases and loans receivable – as reported | 14,961 | ||||
Less: Consolidated Reimbursable and Non-Reimbursable Property Expenses | |||||
Reimbursable property expenses – as reported | 14,004 | ||||
Non-reimbursable property expenses – as reported | 13,931 | ||||
311,130 | |||||
Plus: NOI from Operating Properties | |||||
Self-storage revenues | 23,157 | ||||
Self-storage expenses | (8,105) | ||||
15,052 | |||||
Hotel revenues | 12,380 | ||||
Hotel expenses | (9,167) | ||||
3,213 | |||||
Student housing and other revenues | 3,178 | ||||
Student housing and other expenses | (1,293) | ||||
1,885 | |||||
331,280 | |||||
Adjustments for Pro Rata Ownership of Real Estate Joint Ventures: | |||||
Add: Pro rata share of NOI from equity method investments (a) | 4,015 | ||||
Less: Pro rata share of NOI attributable to noncontrolling interests | (204) | ||||
3,811 | |||||
335,091 | |||||
Adjustments for Pro Rata Non-Cash Items: | |||||
Less: Straight-line and other leasing and financing adjustments | (15,310) | ||||
Add: Above- and below-market rent intangible lease amortization | 5,766 | ||||
Add: Other non-cash items | 485 | ||||
(9,059) | |||||
Pro Rata Cash NOI (b) | 326,032 | ||||
Adjustment to normalize for investments and dispositions (c) | 2,648 | ||||
Normalized Pro Rata Cash NOI (b) | $ | 328,680 |
Investing for the Long Run® | 33 |
Three Months Ended Jun. 30, 2024 | |||||
Net Income Attributable to W. P. Carey | |||||
Net income attributable to W. P. Carey – as reported | $ | 142,895 | |||
Adjustments for Consolidated Operating Expenses | |||||
Add: Operating expenses – as reported | 233,010 | ||||
Less: Operating property expenses – as reported | (18,565) | ||||
Less: Property expenses, excluding reimbursable tenant costs – as reported | (13,931) | ||||
200,514 | |||||
Adjustments for Other Consolidated Revenues and Expenses: | |||||
Less: Reimbursable property expenses – as reported | (14,004) | ||||
Less: Other lease-related income – as reported | (9,149) | ||||
Add: Other income and (expenses) – as reported | 7,589 | ||||
Add: Provision for income taxes – as reported | 6,219 | ||||
Less: Asset management fees revenue – as reported | (1,686) | ||||
Less: Other advisory income and reimbursements – as reported | (1,057) | ||||
(12,088) | |||||
Other Adjustments: | |||||
Less: Straight-line and other leasing and financing adjustments | (15,310) | ||||
Add: Above- and below-market rent intangible lease amortization | 5,766 | ||||
Add: Adjustments for pro rata ownership | 3,795 | ||||
Adjustment to normalize for investments and dispositions (c) | 2,648 | ||||
Add: Property expenses, excluding reimbursable tenant costs, non-cash | 460 | ||||
(2,641) | |||||
Normalized Pro Rata Cash NOI (b) | $ | 328,680 |
Investing for the Long Run® | 34 |
Adjusted EBITDA – Last Five Quarters |
Three Months Ended | |||||||||||||||||||||||||||||
Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | |||||||||||||||||||||||||
Net income | $ | 142,854 | $ | 159,086 | $ | 144,244 | $ | 124,999 | $ | 144,580 | |||||||||||||||||||
Adjustments to Derive Adjusted EBITDA (a) | |||||||||||||||||||||||||||||
Depreciation and amortization | 137,481 | 118,768 | 129,484 | 144,771 | 143,548 | ||||||||||||||||||||||||
Interest expense | 65,307 | 68,651 | 72,194 | 76,974 | 75,488 | ||||||||||||||||||||||||
Gain on sale of real estate, net (b) | (39,363) | (15,445) | (134,026) | (2,401) | (1,808) | ||||||||||||||||||||||||
Impairment charges — real estate (c) | 15,752 | — | 71,238 | 15,173 | — | ||||||||||||||||||||||||
Straight-line and other leasing and financing adjustments (d) | (15,310) | (19,553) | (19,071) | (18,662) | (19,086) | ||||||||||||||||||||||||
Stock-based compensation expense | 8,903 | 8,856 | 8,693 | 9,050 | 8,995 | ||||||||||||||||||||||||
Provision for income taxes | 6,219 | 8,674 | 13,714 | 5,090 | 10,129 | ||||||||||||||||||||||||
Above- and below-market rent intangible lease amortization | 5,766 | 4,068 | 6,644 | 7,835 | 8,824 | ||||||||||||||||||||||||
Other (gains) and losses (e) | (2,504) | (13,839) | 45,777 | (2,859) | 1,366 | ||||||||||||||||||||||||
Other amortization and non-cash charges | 454 | 448 | 21 | 457 | 411 | ||||||||||||||||||||||||
Merger and other expenses (f) | 206 | 4,452 | (641) | 4,152 | 1,419 | ||||||||||||||||||||||||
182,911 | 165,080 | 194,027 | 239,580 | 229,286 | |||||||||||||||||||||||||
Adjustments for Pro Rata Ownership | |||||||||||||||||||||||||||||
Real Estate Joint Ventures: | |||||||||||||||||||||||||||||
Add: Pro rata share of adjustments for equity method investments | 1,242 | 2,814 | 2,664 | 2,656 | 3,013 | ||||||||||||||||||||||||
Less: Pro rata share of adjustments for amounts attributable to noncontrolling interests | (234) | (154) | (267) | (400) | (347) | ||||||||||||||||||||||||
1,008 | 2,660 | 2,397 | 2,256 | 2,666 | |||||||||||||||||||||||||
Adjusted EBITDA (g) | $ | 326,773 | $ | 326,826 | $ | 340,668 | $ | 366,835 | $ | 376,532 |
Investing for the Long Run® | 35 |
Disclosures Regarding Non-GAAP and Other Metrics |
Investing for the Long Run® | 36 |
Investing for the Long Run® | 37 |
_M/:KX ^"7_ 3X_P"#9^UO_BE?
MZC%#\1K#XB>&;V+1]*&S;(L-S!=*T2"1E8W-T(E1$(,;%PR_0W_!R_\ LO\
MQ+?XL?L'^"/@O\"=3O=(\"W%SI]W9^"M"N[RPT6"&?08XX@RHQBA5(6"&0@E
M(SGH:_ 7/+;&:))GI)I6H21F6()
M*0K$J<8;)(_W30!]345C_P#"2ZO_ -"A>_\ ?2T?\)+J_P#T*%[_ -]+0!L4
M5C_\)+J__0H7O_?2T?\ "2ZO_P!"A>_]]+0!L45C_P#"2ZO_ -"A>_\ ?2T?
M\)+J_P#T*%[_ -]+0!L45C_\)+J__0H7O_?2T?\ "2ZO_P!"A>_]]+0!L45C
M_P#"2ZO_ -"A>_\ ?2T?\)+J_P#T*%[_ -]+0!L45C_\)+J__0H7O_?2T?\
M"2ZO_P!"A>_]]+0!L45C_P#"2ZO_ -"A>_\ ?2T?\)+J_P#T*%[_ -]+0!L4
M5C_\)+J__0H7O_?2T?\ "2ZO_P!"A>_]]+0!L45C_P#"2ZO_ -"A>_\ ?2T?
M\)+J_P#T*%[_ -]+0!L45C_\)+J__0H7O_?2T?\ "2ZO_P!"A>_]]+0!L45C
M_P#"2ZO_ -"A>_\ ?2T?\)+J_P#T*%[_ -]+0!L45C_\)+J__0H7O_?2T?\
M"2ZO_P!"A>_]]+0!L45C_P#"2ZO_ -"A>_\ ?2T?\)+J_P#T*%[_ -]+0!L4
M5C_\)+J__0H7O_?2T?\ "2ZO_P!"A>_]]+0!L45C_P#"2ZO_ -"A>_\ ?2T?
M\)+J_P#T*%[_ -]+0!L45C_\)+J__0H7O_?2T?\ "2ZO_P!"A>_]]+0!L45C
M_P#"2ZO_ -"A>_\ ?2T?\)+J_P#T*%[_ -]+0!L45C_\)+J__0H7O_?2T?\
M"2ZO_P!"A>_]]+0!L45C_P#"2ZO_ -"A>_\ ?2T?\)+J_P#T*%[_ -]+0!L4
M5C_\)+J__0H7O_?2T?\ "2ZO_P!"A>_]]+0!L45C_P#"2ZO_ -"A>_\ ?2T?
M\)+J_P#T*%[_ -]+0!L45C_\)+J__0H7O_?2T?\ "2ZO_P!"A>_]]+0!L45C
M_P#"2ZO_ -"A>_\ ?2T?\)+J_P#T*%[_ -]+0!L45C_\)+J__0H7O_?2T?\
M"2ZO_P!"A>_]]+0!L45C_P#"2ZO_ -"A>_\ ?2T?\)+J_P#T*%[_ -]+0!L4
M5C_\)+J__0H7O_?2T?\ "2ZO_P!"A>_]]+0!L45C_P#"2ZO_ -"A>_\ ?2T?
M\)+J_P#T*%[_ -]+0!L45C_\)+J__0H7O_?2T?\ "2ZO_P!"A>_]]+0!L45C
M_P#"2ZO_ -"A>_\ ?2T?\)+J_P#T*%[_ -]+0!L45C_\)+J__0H7O_?2T?\
M"2ZO_P!"A>_]]+0!L45C_P#"2ZO_ -"A>_\ ?2T?\)+J_P#T*%[_ -]+0!L4
M5C_\)+J__0H7O_?2T?\ "2ZO_P!"A>_]]+0!L45C_P#"2ZO_ -"A>_\ ?2T?
M\)+J_P#T*%[_ -]+0!L45C_\)+J__0H7O_?2T?\ "2ZO_P!"A>_]]+0!L45C
M_P#"2ZO_ -"A>_\ ?2T?\)+J_P#T*%[_ -]+0!L45C_\)+J__0H7O_?2T?\
M"2ZO_P!"A>_]]+0!L45C_P#"2ZO_ -"A>_\ ?2T?\)+J_P#T*%[_ -]+0!L4
M5C_\)+J__0H7O_?2T?\ "2ZO_P!"A>_]]+0!L45C_P#"2ZO_ -"A>_\ ?2T?
M\)+J_P#T*%[_ -]+0!L45C_\)+J__0H7O_?2T?\ "2ZO_P!"A>_]]+0!L45C
M_P#"2ZO_ -"A>_\ ?2T?\)+J_P#T*%[_ -]+0!L45C_\)+J__0H7O_?2T?\
M"2ZO_P!"A>_]]+0!L45C_P#"2ZO_ -"A>_\ ?2T?\)+J_P#T*%[_ -]+0!L4
M5C_\)+J__0H7O_?2T?\ "2ZO_P!"A>_]]+0!L45C_P#"2ZO_ -"A>_\ ?2T?
M\)+J_P#T*%[_ -]+0!L45C_\)+J__0H7O_?2T?\ "2ZO_P!"A>_]]+0!L45C
M_P#"2ZO_ -"A>_\ ?2T?\)+J_P#T*%[_ -]+0!L45C_\)+J__0H7O_?2T?\
M"2ZO_P!"A>_]]+0!L45C_P#"2ZO_ -"A>_\ ?2T?\)+J_P#T*%[_ -]+0!L4
M5C_\)+J__0H7O_?2T?\ "2ZO_P!"A>_]]+0!L45C_P#"2ZO_ -"A>_\ ?2T?
M\)+J_P#T*%[_ -]+0!L45C_\)+J__0H7O_?2T?\ "2ZO_P!"A>_]]+0!L45C
M_P#"2ZO_ -"A>_\ ?2T?\)+J_P#T*%[_ -]+0!L45C_\)+J__0H7O_?2T?\
M"2ZO_P!"A>_]]+0!L45C_P#"2ZO_ -"A>_\ ?2T?\)+J_P#T*%[_ -]+0!L4
M5C_\)+J__0H7O_?2T?\ "2ZO_P!"A>_]]+0!L45C_P#"2ZO_ -"A>_\ ?2T?
M\)+J_P#T*%[_ -]+0!L45C_\)+J__0H7O_?2T?\ "2ZO_P!"A>_]]+0!L45C
M_P#"2ZO_ -"A>_\ ?2T?\)+J_P#T*%[_ -]+0!L45C_\)+J__0H7O_?2T?\
M"2ZO_P!"A>_]]+0!L45C_P#"2ZO_ -"A>_\ ?2T?\)+J_P#T*%[_ -]+0!L4
M5C_\)+J__0H7O_?2T?\ "2ZO_P!"A>_]]+0!L45C_P#"2ZO_ -"A>_\ ?2T?
M\)+J_P#T*%[_ -]+0!L45C_\)+J__0H7O_?2T?\ "2ZO_P!"A>_]]+0!L45C
M_P#"2ZO_ -"A>_\ ?2T?\)+J_P#T*%[_ -]+0!L45C_\)+J__0H7O_?2T?\
M"2ZO_P!"A>_]]+0!L45C_P#"2ZO_ -"A>_\ ?2T?\)+J_P#T*%[_ -]+0!L4
M5C_\)+J__0H7O_?2T?\ "2ZO_P!"A>_]]+0!L45C_P#"2ZO_ -"A>_\ ?2T?
M\)+J_P#T*%[_ -]+0!L45C_\)+J__0H7O_?2T?\ "2ZO_P!"A>_]]+0!L45C
M_P#"2ZO_ -"A>_\ ?2T?\)+J_P#T*%[_ -]+0!L45C_\)+J__0H7O_?2T?\
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M^*0O/]4O\2^GUK=C8O&KLA4E02IZCVK^$'N?T.MA:***0PHHHH _,C_@IO\
MLH_\%-OVG_V^] \8V?[*O@;XM?L__#NQM[KPA\-_$WQ/&CV.L>("B.^JZE;B
MWE^U^0S20Q02?NQLWX(D=7]0^+_[/O[=?_!4?]AKXS_L9_MN_L_>#/@NOB?0
M+*#P5J_A/QZ?$"2WD5Q]J5KA!;PF**.:VM,@9+I)(!@J,]=^TG_P30U/]MS]
MLA_B!^US\1+K7?@?H/@Z"S\&?";1?$NHZ;#+KC3.]UJFHBU>+[0PCV1PJ9&5
M1N.T$DM\.>!/VS/&O[ W[+7_ 4&\0_LE?$;6O$_P9^#.N:+HO[/VM>(M7EU
M>+2?$%_#'::E8VMU=,[7-K97]S:LB.S*,GE][,P![=^TI\$/^"P/_!2?]FBW
M_P""=O[3'[+OPZ^&WAO7+O2[?XJ_&'2?B2FJQZE865U!
OXX*_??!3^!CO6G^4S\XX]^/#^DO_;0HHHK]S/SX**** "BBB@ HHHH _LU
ML-.T_P"PP_Z##_JE_P"60]!5L 8 P!T J*P_P"/_KBO\ (5+7\(/<_H=;
M!1112&%%%% 'SK^W'^V/^R__ ,$\]+7XO^*_ ::U\3/'CQ:)X-\(^$=&CG\3
M>.+R/_46,(1?-DCC,@R[GRX0_P#>95;Y&E\9?&O_ ()%_L@_'W_@K?\ MGZ#
M8:A\??COK>DM+X*T9GGTOPZT4+66B:0\L8)DCM(I'>YG3[^UU3>P5Y/7_P!J
M#_@CM\2/CS^WK=?\% ?AW_P4/\<_#SQ2GA>'P]X?L]*\*:5J$6AZ>J+YT5JU
M['(8S-+YLKNH5CYS)G;P?
'_#][X2U*WUS7KJ5(X].M'M9$FN&9R%41H6
WB
MW B/=YDS 1KC=N'*?"?_ (*/^)_A=_P0H\._\%,_VC;@>)/$%I\&;7Q)K2PP
M168U;4Y8E6*(+$@2$2W$D:95<*'R%.,5]&_MC?\ )HGQ4_[)OKG_ *;YZ_-+
MXK_##Q5\7_\ @SKL/!W@S3YKJ_B_9[T+5?(MT+.T%A<6E_/@#DXAMI#CVH ]
M$^(W[2O_ 5A_8%^"G@#_@H-^V/^T%X%\9> =9US1(/C%\+M*^'BZ9_PA5CJ
MT\-NL^G:@L[S73VDUQ"CK< B4%L%3AAM_MM_M8_MN:C\?/VF=._9V_:0L/AI
MH?[*WP:TKQ@FBW7@^QU./QO?W5GJ.H/'>2W2F2WLEBT\6_\ HS12!Y7?ZI?^7MO2MV-!%&L:DX50!D\U_"#W/Z'6PM%%%(84
M444 4O$OAS0_&/AS4/"/B?3(KW3=5LI;/4;.892>"5"DD;>S*Q!^M8O@#X9?
M"KX%?"73OA3X!\,:;X?\&^&M'%EI^DQ@+:6-E&F/+^')Y
MHU=;?4;RYAL;68JWRMY
)IE%O#
M%$C"&&&,,% +']0OVN/^"77C7XZ_%;XD_$WX)_M>3_#+2?C?X L_"?QJTD^"
MX-5;6-.M4N88Y[*XEGB_LZZ^RW=S;F5DG3:RMY8= U<+JW[7O_!)[]N;_@HU
M^S]\2_A[^W_H%SXW^$>H>*+;P?X