Includes Record Fourth-Quarter Investment
Volume of $845 Million
NEW
YORK, Jan. 8, 2025 /PRNewswire/ -- W. P.
Carey Inc. (W. P. Carey, NYSE: WPC), a leading net lease REIT
specializing in corporate sale-leasebacks, build-to-suits and the
acquisition of single-tenant net lease properties, today announced
investment volume for the 2024 full year of approximately
$1.6 billion at a weighted-average
initial cap rate of approximately 7.5% and an average yield of
approximately 9% (which reflects contractual rent escalations over
the terms of the leases).
During 2024, the company remained primarily focused on acquiring
high-quality, single-tenant warehouse and industrial properties,
which comprised close to 60% of its full-year investment volume,
with retail properties comprising approximately 30%. From a
geographic perspective, approximately three-quarters of its 2024
investment volume was located in North
America and one-quarter in Europe.
Record Fourth-Quarter Investment Volume
During the fourth quarter, the company completed record
on-balance sheet investment volume for a quarter totaling
approximately $845 million across a
range of property types, including the following significant
investments, each of which are on leases with built-in rent
escalations:
- The approximately $200 million
acquisition of four portfolios of discount retail stores, totaling
106 properties located in 21 states across the U.S., net leased to
Dollar General, an investment-grade company. The properties are
triple-net leased for a remaining weighted-average term of 14.3
years. As part of the transaction, W. P. Carey will acquire nine
additional stores for an estimated $20
million during the first quarter of 2025.
- The approximately $100 million
acquisition of a Class A industrial facility net leased to Canadian
Solar, a global renewable energy company. The 1.1
million-square-foot facility is located in Shelbyville, KY and will serve as the tenant's
principal U.S. battery manufacturing facility. It is triple-net
leased for a remaining term of 12.4 years.
- The approximately $100 million
sale-leaseback of a five-building manufacturing and industrial
campus totaling 1.1 million square feet located in Monterrey, Mexico, net leased to one of the
oldest and largest privately held industrial manufacturing
conglomerates in the U.S. The portfolio is under a master lease on
a triple-net basis for a term of 25 years with rent payable in U.S.
dollars.
- The approximately $100 million
acquisition of a 209,000-square-foot colocation data center located
in Weehawken, NJ leased to a
subsidiary of Centersquare, a leading data center operator and
portfolio company of Brookfield Infrastructure Partners. The
facility is a Tier III data center with approximately 12 MW of
critical power capacity and N+1 redundancy. It is triple-net leased
for a remaining term of 11.1 years.
Jason Fox, Chief Executive
Officer, W. P. Carey said: "I'm
pleased to say we had a strong finish to 2024, completing a record
quarter for investment activity, which brought us into the top half
of our investment volume guidance range. The full benefit of these
investments will flow through our earnings in 2025, in addition to
our best-in-class rent escalations. And we're well-positioned to
continue putting capital to work this year without the need to
issue equity — funding investments through the substantial
liquidity we've built up and accretive sales of non-core assets,
including operating properties. Furthermore, 2024 has established a
new baseline from which we will grow our AFFO and dividend."
W. P. Carey Inc.
W. P. Carey ranks among the largest net lease REITs with a
well-diversified portfolio of high-quality, operationally critical
commercial real estate, which includes 1,430 net lease properties
covering approximately 172 million square feet and a portfolio of
78 self-storage operating properties as of September 30, 2024. With offices in New York, London, Amsterdam and Dallas, the company remains focused on
investing primarily in single-tenant, industrial, warehouse and
retail properties located in the U.S. and Northern and Western Europe, under long-term net leases
with built-in rent escalations.
www.wpcarey.com
Certain of the matters discussed in this communication
constitute forward-looking statements within the meaning of the
Securities Act of 1933 and the Securities Exchange Act of 1934,
both as amended by the Private Securities Litigation Reform Act of
1995. The forward-looking statements include, among other things,
statements regarding the intent, belief or expectations of W. P.
Carey and can be identified by the use of words such as "may,"
"will," "should," "would," "will be," "goals," "believe,"
"project," "expect," "anticipate," "intend," "estimate"
"opportunities," "possibility," "strategy," "maintain" or the
negative version of these words and other comparable terms. These
forward-looking statements include, but are not limited to,
statements made by Mr. Jason Fox
regarding deal volume, sources of capital, and expectations for
future AFFO growth and dividend growth. These statements are based
on the current expectations of our management, and it is important
to note that our actual results could be materially different from
those projected in such forward-looking statements. There are a
number of risks and uncertainties that could cause actual results
to differ materially from the forward-looking
statements. Other unknown or unpredictable risks or
uncertainties, like the risks related to fluctuating interest
rates, the impact of inflation on our tenants and us, the effects
of pandemics and global outbreaks of contagious diseases, and
domestic or geopolitical crises, such as terrorism, military
conflict, war or the perception that hostilities may be imminent,
political instability or civil unrest, or other conflict, and those
additional risk factors discussed in reports that we have filed
with the SEC, could also have material adverse effects on our
future results, performance or achievements. Discussions of some of
these other important factors and assumptions are contained in W.
P. Carey's filings with the SEC and are available at the SEC's
website at http://www.sec.gov, including Part I, Item 1A. Risk
Factors in W. P. Carey's Annual Report on Form 10-K for the fiscal
year ended December 31, 2023.
Investors are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
communication, unless noted otherwise. Except as required under the
federal securities laws and the rules and regulations of the SEC,
W. P. Carey does not undertake any obligation to release publicly
any revisions to the forward-looking statements to reflect events
or circumstances after the date of this communication or to reflect
the occurrence of unanticipated events.
Institutional Investors:
Peter
Sands
1 (212) 492-1110
institutionalir@wpcarey.com
Individual Investors:
W. P. Carey Inc.
1 (212) 492-8920
ir@wpcarey.com
Press Contact:
Anna
McGrath
1 (212) 492-1166
amcgrath@wpcarey.com
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SOURCE W. P. Carey Inc.