W. P. Carey (WPC) Tops Q4 EPS by 29c, Revenues Beat

W. P. Carey (NYSE: WPC) reported Q4 EPS of $0.76, $0.29 better than the analyst estimate of $0.47. Revenue for the quarter came in at $307.4 million versus the consensus estimate of $300.73 million.

• Quarterly cash dividend raised to $1.046 per share, equivalent to an annualized dividend rate of $4.184 per share
• 2021 AFFO guidance range of $4.79 to $4.93 per diluted share announced, including Real Estate AFFO of between $4.66 and $4.80 per diluted share and assuming full year investment volume totaling between $1.0 billion and $1.5 billion

Revenues

Total Company: Revenues, including reimbursable costs, for the 2020 fourth quarter totaled $307.4 million, down 1.2% from $311.2 million for the 2019 fourth quarter.
Real Estate: Real Estate revenues, including reimbursable costs, for the 2020 fourth quarter were $302.4 million, up 2.0% from $296.4 million for the 2019 fourth quarter, due primarily to higher lease revenues from net acquisitions, a stronger euro relative to the U.S. dollar and rent escalations. Lease termination and other revenues were higher during the 2019 fourth quarter, which included a significant lease-related recovery. Lower operating revenues reflected the disposition of a hotel operating property during the 2020 first quarter and lower occupancy at the Company's remaining hotel operating property due to the COVID-19 pandemic.
Investment Management: Investment Management revenues, including reimbursable costs, for the 2020 fourth quarter were $5.0 million, down 66.4% from $14.9 million for the 2019 fourth quarter, due primarily to lower asset management revenues and reimbursable costs resulting from the management internalization by Carey Watermark Investors Incorporated (CWI 1) and Carey Watermark Investors 2 Incorporated (CWI 2) completed during the 2020 second quarter.

MANAGEMENT COMMENTARY

"While we're pleased with our fourth quarter and full year results, which reflect the exceptional resiliency of our portfolio during the pandemic, we've remained focused on external growth, ending the year with a strong rebound in deal volume," said Jason Fox, Chief Executive Officer of W. P. Carey. "Given the strength of our near-term pipeline, continued appetite from companies to unlock value through sale leasebacks, our balance sheet flexibility and a supportive cost of capital, we're confident in our ability to generate significantly higher investment volume in 2021."

For earnings history and earnings-related data on W. P. Carey (WPC) click here.

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