W. P. Carey raises 2026 AFFO forecast as Q3 revenue tops estimates
Third-quarter revenue of $468.3 million topped the $450.96 million estimate compiled by Finnhub, and W. P. Carey raised and narrowed its 2026 AFFO per share forecast.
Key takeaways
- W. P. Carey Inc. (WPC) said on Oct. 27 that third-quarter revenue rose 8.6% to $468.3 million, topping the $450.96 million estimate compiled by Finnhub. Net income attributable to the company was $141.0 million, unchanged from a year earlier. It raised and narrowed its 2026 AFFO per share forecast to $5.23 to $5.29.
W. P. Carey Inc. (WPC) said on Oct. 27 that third-quarter revenue rose 8.6% to $468.3 million, topping the $450.96 million estimate compiled by Finnhub. The net lease real estate investment trust also raised and narrowed its 2026 forecast for adjusted funds from operations, or AFFO, per diluted share.
The company owned 1,755 net lease properties covering about 189 million square feet as of Sept. 30, the filing said.
Quarterly results
Here's how the company did:
- Revenue: $468.3 million, up 8.6% from $431.3 million a year earlier, vs. $450.96 million expected, according to Finnhub
- Net income attributable to W. P. Carey: $141.0 million, unchanged from a year earlier
- Diluted earnings per share: 61 cents vs. 64 cents a year earlier
- AFFO per diluted share: $1.33, up 6.4% from $1.25 a year earlier
- AFFO: $308.2 million
A lower gain on sale of real estate was substantially offset by the accretive impact of net investment activity and lower impairment charges, the company said. Real estate impairment charges fell to $6.1 million from $19.5 million a year earlier.
AFFO rose on accretive net investment activity and rent escalations, partly offset by the settlement of forward equity.
2026 guidance
The company raised and narrowed its full-year AFFO per diluted share forecast to $5.23 to $5.29, from $5.19 to $5.27. It also raised the low end of its investment volume assumption by $100 million, narrowing the range to $1.8 billion to $2.1 billion.
| Item | Updated 2026 guidance | Prior 2026 guidance |
|---|---|---|
| AFFO per diluted share | $5.23 to $5.29 | $5.19 to $5.27 |
| Investment volume | $1.8 billion to $2.1 billion | $1.7 billion to $2.1 billion |
| Disposition volume | $350 million to $450 million | $350 million to $550 million |
| General and administrative expenses | $104 million to $106 million | $103 million to $106 million |
| Property expenses, excluding reimbursable tenant costs | $54 million to $57 million | $54 million to $58 million |
| Tax expense (on an AFFO basis) | $40 million to $43 million | $43 million to $47 million |
The company said the raise primarily reflects a more favorable outlook for potential rent loss, along with lower projected tax expense. One-time rent abatements, expected mainly in the fourth quarter in connection with releasing activity, partly offset those gains.
Chief Executive Officer Jason Fox said, “Even though sharply higher interest rates have added some uncertainty to the transaction market, we’re confident full-year investment volume will remain well within our guidance range.” He added, “We’re raising the bottom end of that range and continue to see a path to the top half.”
Investments and dispositions
The company has completed $1.6 billion of investments year to date, including $181.9 million in the third quarter and $143.2 million after quarter end.
It disposed of 33 properties for gross proceeds of $273.2 million in the first nine months of 2026, including five properties for $27.0 million in the third quarter.
Capital investments and commitments of $95.2 million are scheduled to be completed in the fourth quarter of 2026. Another $204.8 million is scheduled for 2027 and $25.2 million for 2028.
Contractual same-store rent growth was 2.6% year over year on a constant currency basis as of Sept. 30.
Revenue has risen in each of the last three quarters, from $431.3 million in the third quarter of 2025 to $461.1 million in the second quarter of 2026, according to its SEC filings.
Dividend and capital
The company said on Sept. 18 that its board raised the quarterly cash dividend to 95 cents per share, equal to $3.80 annualized, a 4.4% increase from the third quarter of 2025. The dividend was paid Oct. 15 to shareholders of record as of Sept. 30.
The company settled 2,301,613 shares under forward sale agreements during the quarter for net proceeds of about $150 million. About 7,612,418 shares remain available for settlement, representing anticipated net proceeds of about $538 million.
The company completed a $350 million offering of 5.200% senior notes due 2036 on July 2 and used the proceeds on July 29 to prepay $350 million of 4.250% senior notes due October 2026, with no prepayment costs.
At Sept. 30, total liquidity was $2.6 billion, including $1.9 billion of available capacity under its senior unsecured credit facility.
The company will hold a conference call on Oct. 28 at 11 a.m. Eastern Time. A live audio webcast and replay are available at www.wpcarey.com/earnings.