10-Q · July 29, 2026
W. P. Carey delivered 7.0% year-over-year revenue growth and an 8.1% increase in AFFO, with GAAP EPS rising to $0.82 from $0.23. Growth was led by recently acquired net-lease properties and higher finance-lease income,…
Earnings analysis · 10-Q
WPC earnings analysis
Filed October 28, 2026 · Our reading of the company's report
The latest report
W. P. Carey delivered strong operating performance in Q3 2026, with revenue up 8.6% year over year, operating margin expanding to 55.17%, AFFO up 11.4%, and portfolio occupancy reaching 98.6%. However, diluted GAAP EPS…
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W. P. Carey delivered strong operating performance in Q3 2026, with revenue up 8.6% year over year, operating margin expanding to 55.17%, AFFO up 11.4%, and portfolio occupancy reaching 98.6%. However, diluted GAAP EPS declined to $0.61, impairment charges increased to $125.556 million year to date, and interest expense rose to $237.827 million. Liquidity is supported by approximately $1.9 billion of revolver capacity and $537.5 million of forward-equity proceeds, but the company faces a €500 million note maturity in April 2027 and $282.8 million of next-12-month interest payments.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.61
- Segment
- One reportable segment: real estate and investment management combined revenue of $468.301 million, including Real Estate revenue of $467.426 million and Investment Management revenue of $0.875 million.
What stood out
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Revenue grew 8.6% year over year
Third-quarter revenue increased to $468.301 million from $431.303 million in the prior-year quarter, up $36.998 million, or 8.6%. Revenue also increased from approximately $461 million in Q2 2026.
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Operating margin expanded sharply
Operating income, calculated as revenue less operating expenses, was $258.329 million, producing a 55.17% operating margin versus 47.8% in Q3 2025 and 35.5% in Q2 2026. Management attributed revenue growth primarily to net investment activity and rent escalations.
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AFFO increased 11.4%
AFFO attributable to W. P. Carey increased to $308.235 million from $276.629 million, up 11.4% year over year. Management cited accretive net investment activity and rent escalations, partly offset by forward-equity settlement.
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Portfolio scale and occupancy improved
The net-leased portfolio expanded to 1,755 properties from 1,682 at December 31, 2025, while occupancy improved to 98.6% from 98.0%. ABR increased to $1.658 billion from $1.553 billion.
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Investment activity remained strong
The company acquired 19 investments totaling $1.5 billion during the first nine months and completed $91.3 million of construction projects, compared with $46.9 million of construction projects in the prior-year period.
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Operating cash flow funded active investment
Operating cash flow was $938.572 million for the first nine months, while total real-estate purchases were $1.372 billion and construction and other real-estate capital expenditures were $119.429 million. Cash flow benefited from $64.067 million of distributions from equity-method investments.
What to watch
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GAAP EPS declined
Diluted GAAP EPS fell to $0.61 from $0.64 in Q3 2025 and $0.82 in Q2 2026, despite higher revenue. The quarter included $41.566 million of other losses and $80.388 million of interest expense.
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Impairments increased materially
Real-estate impairment charges rose to $125.556 million for the first nine months from $30.677 million in the prior-year period. Management cited tenant vacancy, lease expirations in 2027, and reductions to estimated fair values as drivers.
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Higher financing costs
Interest expense increased to $237.827 million for the first nine months from $215.825 million, while total debt rose to $8.784 billion from $8.723 billion at December 31, 2025. Management attributed the increase primarily to higher Senior Unsecured Notes balances and rates.
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Cash resources declined
The company had only $143.390 million of cash and cash equivalents at September 30, 2026, down from $155.329 million at December 31, 2025. Cash and restricted cash declined to $185.413 million from $272.392 million.
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Near-term debt maturities
The company expects $581.688 million of scheduled debt principal payments during 2027, including €500 million of senior notes due in April 2027. It also estimates $282.8 million of interest payments due during the next 12 months.
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No formal risk-factor changes
The filing states there were no significant changes to the risk factors disclosed in the 2025 Annual Report. However, the portfolio remains exposed to foreign-exchange risk: a 1% currency move would change projected next-12-month foreign operating cash flow by $2.5 million for the euro, $0.4 million for sterling, and $0.3 million for the Danish krone.
Management's outlook
The 10-Q does not provide new or revised numeric company guidance. It states that significant cash requirements include a €500 million senior-note maturity in April 2027 and $282.8 million of interest payments due during the next 12 months; prior AFFO and investment guidance was provided in the October 27, 2026 earnings release rather than this filing.
Earlier filings 4
10-Q · April 29, 2026
W. P. Carey reported impressive growth in Q1 2026, with revenues of $453.0M, exceeding estimates by $5.1M, and diluted EPS of $0.80, significantly higher than the $0.57 from the previous year. Management raised their…
10-K · February 11, 2026
W. P. Carey positions itself as an internally-managed, diversified net-lease REIT focused on long-term, mission-critical sale-leaseback and net-leased assets with built-in rent escalators and active asset management.…
10-Q · October 30, 2024
W. P. Carey reported Q3 results with consolidated revenue of $397,383 (in thousands) for the three months ended September 30, 2024, down from $448,553 (in thousands) a year earlier, and diluted EPS of $0.51 versus $0.58…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.