W. P. Carey Inc.

Q2 2026 AFFO per share was $1.34, up $0.06 or 4.7% year over year. Contractual same-store rent growth was 2.6% year over year, and portfolio occupancy ended the quarter at 98.5%, up 40 basis points sequentially. The company completed a little over $700 million of investments in Q2 and $1.3 billion year to date at a weighted average initial cash cap rate of 7.4%; it also completed $84 million of dispositions in Q2 and $246 million year to date. Full-year AFFO per share guidance was raised and narrowed to $5.19-$5.27, implying 5.2% year-over-year growth. Full-year investment volume guidance was raised to $1.7 billion-$2.1 billion, while disposition guidance was narrowed to $350 million-$550 million. Management lowered expected rent loss from tenant credit events to $7 million-$10 million, reduced property expense guidance to $54 million-$58 million, and cut tax expense guidance to $43 million-$47 million. Other lease-related income is still expected to be in the low to mid-$30 million range for the year. Capital markets activity included nearly $900 million of forward equity sold and about $1.5 billion of bonds issued so far this year; quarter-end liquidity was approximately $2.7 billion, net debt to adjusted EBITDA was 5.1x including unsettled forward equity and 5.5x excluding it, and the weighted average debt interest rate was 3.2%.

Jason Fox framed the quarter as an extension of the momentum seen in 2025, with execution across both investments and capital markets driving another raise to full-year outlook. He emphasized that deal flow remains strong, cap rates are stable in the mid- to low-7% range, and the company is well funded to keep investing well into 2027 without needing immediate market access. He also highlighted the reduction in Hellweg exposure and said the issue has a negligible impact on 2026 earnings.

ToniAnn Sanzone focused on the earnings bridge and the updated guidance items. She said the quarter benefited from higher lease revenues, the start of CPI flowing through leases, lower property and tax expenses, and some timing benefits from other lease-related income and a one-time tax benefit; offsetting items included the impact of settled forward equity. She cited quarter-end liquidity of about $2.7 billion, net debt to adjusted EBITDA of 5.1x including unsettled forward equity or 5.5x excluding it, a 3.2% weighted average interest rate on debt, and noted the recent $350 million 10-year U.S. bond pricing at a 5.2% coupon.

Analysts pressed on cap rates, competition, and whether larger sale-leasebacks are becoming a recurring source of volume; management said competition has increased, especially in the U.S., but has not materially disrupted their ability to source deals, and that larger transactions remain part of normal flow. Questions on Q3/Q4 earnings drivers centered on one-time items, and management pointed to lower other lease-related income, higher refinancing interest expense, and the timing of rent-loss assumptions as the main second-half differences. On Hellweg and Cornerstone, management said Hellweg rent loss assumptions are conservative and Cornerstone is expected to keep paying rent even if it restructures.