W. P. Carey tenant Hellweg files for insolvency in Germany

W. P. Carey Inc. (NYSE: WPC) disclosed that its tenant Hellweg Die Profi-Baumärkte GmbH & Co. KG filed for insolvency under self-administration on June 16, 2026.

As of that date, W. P. Carey net leased 16 properties to Hellweg, representing approximately $15.2 million in annualized base rent. Hellweg paid rent through the end of May 2026. W. P. Carey holds bank guarantees covering three months of rent, which can be drawn in the event of unpaid rent.

The company has executed binding agreements with other home improvement operators to lease eight of the 16 stores, representing approximately $7.4 million in annualized base rent. Those leases are set to commence upon termination of the Hellweg leases at comparable rents, with estimated downtime and free rent periods of between three and nine months. W. P. Carey said it is in active negotiations for the re-lease or sale of a majority of the remaining eight stores.

W. P. Carey said it is maintaining its adjusted funds from operations guidance range of $5.16 to $5.26 per diluted share for the full year ending December 31, 2026. The guidance reflects estimated potential rent loss from tenant credit events of $8 million to $12 million, including estimated unpaid rents, downtime, and free rent periods related to the Hellweg situation.

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