W. P. Carey 8K W. P. Carey Inc. Announces Fourth Quarter and Full Year 2022 Financial Results | WPC 10 Feb 23

Exhibit 99.2

W. P. Carey Inc.

Supplemental Information

Fourth Quarter 2022

Terms and Definitions

As used in this supplemental package, the terms “W. P. Carey,” “WPC,” “we,” “us” and “our” include W. P. Carey Inc., its consolidated subsidiaries and its predecessors, unless otherwise indicated. Other terms and definitions are as follows:


REIT			Real estate investment trust
CPA:18 – Global			Corporate Property Associates 18 – Global Incorporated
CESH			Carey European Student Housing Fund I, L.P.
WLT			Watermark Lodging Trust, Inc.
Managed Programs			CPA:18 – Global (prior to the CPA:18 Merger on August 1, 2022) and CESH
U.S.			United States
AUM			Assets under management
ABR			Contractual minimum annualized base rent
SEC			Securities and Exchange Commission
ASC			Accounting Standards Codification
EUR			Euro
EURIBOR			Euro Interbank Offered Rate
SOFR			Secured Overnight Financing Rate
SONIA			Sterling Overnight Index Average
TIBOR			Tokyo Interbank Offered Rate
LIBOR			London Interbank Offered Rate
CPA:18 Merger			Our merger with CPA:18 – Global, which was completed on August 1, 2022

Important Note Regarding Non-GAAP Financial Measures

This supplemental package includes certain “non-GAAP” supplemental measures that are not defined by generally accepted accounting principles (“GAAP”), including funds from operations (“FFO”); adjusted funds from operations (“AFFO”); earnings before interest, taxes, depreciation and amortization (“EBITDA”); adjusted EBITDA; pro rata cash net operating income (“pro rata cash NOI”); normalized pro rata cash NOI; same store pro rata rental income; cash interest expense; and cash interest expense coverage ratio. FFO is a non-GAAP measure defined by the National Association of Real Estate Investments Trusts, Inc. (“NAREIT”), an industry trade group. Reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures are provided within this supplemental package. In addition, refer to the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of these non-GAAP financial measures and other metrics.

Amounts may not sum to totals due to rounding.

W. P. Carey Inc.

Supplemental Information – Fourth Quarter 2022


Table of Contents


Overview
Summary Metrics			1
Components of Net Asset Value			3

Financial Results
Statements of Income – Last Five Quarters
Consolidated			5
Real Estate			7
Investment Management			8
FFO and AFFO – Last Five Quarters
Consolidated			9
Real Estate			10
Investment Management			11
Elements of Pro Rata Statement of Income and AFFO Adjustments			12
Capital Expenditures			13

Balance Sheets and Capitalization
Consolidated Balance Sheets			15
Capitalization			16
Debt Overview			17
Debt Maturity			18
Senior Unsecured Notes			19

Real Estate
Investment Activity
Capital Investments and Commitments			21
Investment Volume			22
Dispositions			24
Joint Ventures			25
Top Ten Tenants			26
Diversification by Property Type			27
Diversification by Tenant Industry			28
Diversification by Geography			29
Contractual Rent Increases			30
Same Store Analysis			31
Leasing Activity			34
Lease Expirations			35
Self Storage Operating Properties Portfolio			36

Appendix
Normalized Pro Rata Cash NOI			38
Adjusted EBITDA – Last Five Quarters
Consolidated			40
Real Estate			42
Investment Management			43
Disclosures Regarding Non-GAAP and Other Metrics			44

W. P. Carey Inc.

Overview – Fourth Quarter 2022


Summary Metrics

As of or for the three months ended December 31, 2022.


Financial Results
	Real Estate Segment
			Total (a)
Revenues, including reimbursable costs – consolidated ($000s)	$	402,142		$	402,629
Net income (loss) attributable to W. P. Carey ($000s)	210,142			209,538
Net income attributable to W. P. Carey per diluted share	1.00			1.00
Normalized pro rata cash NOI from real estate ($000s) (b) (c)	346,170			346,170
Adjusted EBITDA ($000s) (b) (c)	341,122			341,523
AFFO attributable to W. P. Carey ($000s) (b) (c)	269,955			269,676
AFFO attributable to W. P. Carey per diluted share (b) (c)	1.29			1.29

Dividends declared per share – current quarter				1.065
Dividends declared per share – current quarter annualized				4.260
Dividend yield – annualized, based on quarter end share price of $78.15				5.5		%
Dividend payout ratio – for the full year ended December 31, 2022 (d)				80.2		%

Balance Sheet and Capitalization
Equity market capitalization – based on quarter end share price of $78.15 ($000s)				$	16,460,027
Pro rata net debt ($000s) (e)				7,853,988
Enterprise value ($000s)				24,314,015

Total consolidated debt ($000s)				7,877,748
Gross assets ($000s) (f)				19,802,421
Liquidity ($000s) (g)				2,221,039

Pro rata net debt to enterprise value (c)				32.3		%
Pro rata net debt to adjusted EBITDA (annualized) (b) (c)				5.7x
Total consolidated debt to gross assets				39.8		%
Total consolidated secured debt to gross assets				5.7		%
Cash interest expense coverage ratio (b)				6.3x

Weighted-average interest rate (c)				3.0		%
Weighted-average debt maturity (years) (c)				4.4

Moody's Investors Service – issuer rating				Baa1 (stable)
Standard & Poor's Ratings Services – issuer rating (h)				BBB+ (stable)

Real Estate Portfolio (Pro Rata)
ABR – total portfolio ($000s) (i)				$	1,381,899
ABR – unencumbered portfolio (% / $000s) (i) (j)	89.0% /			$	1,229,396
Number of net-leased properties				1,449
Number of operating properties (k)				87
Number of tenants – net-leased properties				392

ABR from top ten tenants as a % of total ABR – net-leased properties				18.1		%
ABR from investment grade tenants as a % of total ABR – net-leased properties (l)				31.9		%
Contractual same store growth (m)				3.4		%

Net-leased properties – square footage (millions)				176.0

Occupancy – net-leased properties				98.8		%
Weighted-average lease term (years)				10.8

Investment volume – current quarter ($000s)				$	158,520
Dispositions – current quarter ($000s)				67,632

Maximum commitment for capital investments and commitments expected to be completed during 2023 ($000s)				87,660
Construction loan funding expected to be completed during 2023 ($000s)				68,719
Total capital investments, commitments and construction loan funding expected to be completed during 2023 ($000s)			156,379

________


						Investing for the long runTM \| 1

W. P. Carey Inc.

Overview – Fourth Quarter 2022

(a)Includes immaterial amounts from our Investment Management segment.

(b)Normalized pro rata cash NOI, adjusted EBITDA, AFFO and cash interest expense coverage ratio are non-GAAP measures. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of our non-GAAP measures and for details on how certain non-GAAP measures are calculated.

(c)Presented on a pro rata basis. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata.

(d)Represents dividends declared per share divided by AFFO per diluted share on a year-to-date basis.

(e)Represents total pro rata debt outstanding less consolidated cash and cash equivalents. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata.

(f)Gross assets represent consolidated total assets before accumulated depreciation on buildings and improvements. Gross assets are net of accumulated amortization on in-place lease intangible assets of $1,061.2 million and above-market rent intangible assets of $507.4 million.

(g)Represents (i) availability under our Senior Unsecured Credit Facility (net of amounts reserved for standby letters of credit), (ii) consolidated cash and cash equivalents, and (iii) available proceeds under our equity forward sale agreements.

(h)In January 2023, Standard & Poor’s Ratings Services upgraded our issuer credit rating and issue-level rating on our unsecured notes from BBB with a positive outlook, to BBB+ with a stable outlook.

(i)See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of ABR.

(j)Represents ABR from properties unencumbered by non-recourse mortgage debt.

(k)Comprised of 84 self-storage properties, two student housing properties and one hotel.

(l)Percentage of portfolio is based on ABR, as of December 31, 2022. Includes tenants or guarantors with investment grade ratings (24.5%) and subsidiaries of non-guarantor parent companies with investment grade ratings (7.4%). Investment grade refers to an entity with a rating of BBB- or higher from Standard & Poor’s Ratings Services or Baa3 or higher from Moody’s Investors Service. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of ABR.

(m)See the Same Store Analysis section for a description of contractual same store growth.


						Investing for the long runTM \| 2

W. P. Carey Inc.

Overview – Fourth Quarter 2022


Components of Net Asset Value (a)

Dollars in thousands, except per share amounts.


Real Estate	Three Months Ended Dec. 31, 2022		Annualized
Normalized pro rata cash NOI (b) (c)	$	346,170	$	1,384,680
Components of normalized pro rata cash NOI:
Net lease normalized pro rata cash NOI	328,938		1,315,752
Self-storage and other operating properties normalized pro rata cash NOI (d)	17,232		68,928

Balance Sheet – Selected Information (Consolidated Unless Otherwise Stated)			As of Dec. 31, 2022
Assets
Book value of real estate excluded from normalized pro rata cash NOI (e)			$	192,878
Cash and cash equivalents			167,996
Las Vegas retail complex construction loan (f)			196,352
Other secured loans receivable, net			39,250
Due from affiliates			919
Other assets, net:
Investment in shares of Lineage Logistics (a cold storage REIT)			$	404,921
Straight-line rent adjustments			292,336
Deferred charges			59,581
Non-rent tenant and other receivables			58,958
Office lease right-of-use assets, net			56,674
Restricted cash, including escrow			56,145
Taxes receivable			43,020
Securities and derivatives			41,017
Deferred income taxes			20,451
Leasehold improvements, furniture and fixtures			14,564
Prepaid expenses			12,708
Rent receivables (g)			3,423
Other			15,510
Total other assets, net			$	1,079,308

Liabilities
Total pro rata debt outstanding (c) (h)			$	8,021,984
Dividends payable			228,257
Deferred income taxes			178,959
Accounts payable, accrued expenses and other liabilities:
Accounts payable and accrued expenses			$	173,110
Operating lease liabilities			146,302
Prepaid and deferred rents			136,742
Tenant security deposits			62,616
Accrued taxes payable			46,211
Other			58,862
Total accounts payable, accrued expenses and other liabilities			$	623,843

________

(a)This schedule excludes $0.4 million of Adjusted EBITDA attributable to our Investment Management segment for the three months ended December 31, 2022, primarily generated from asset management fees.

(b)Normalized pro rata cash NOI is a non-GAAP measure. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of our non-GAAP measures and for details on how they are calculated.

(c)Presented on a pro rata basis. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata.

(d)Other operating properties include two student housing properties and one hotel.

(e)Represents the value of real estate not included in normalized pro rata cash NOI, such as vacant assets, in-progress build-to-suit properties, real estate under construction for certain expansion projects at existing properties and a common equity interest in the Harmon Retail Corner in Las Vegas.

(f)Represents a construction loan for a retail complex in Las Vegas, Nevada, which is included in Equity method investments (as an equity method investment in real estate) on our consolidated balance sheets. See the Investment Activity – Investment Volume section for additional information about this investment.

(g)Comprised of rent receivables that were substantially collected as of the date of this report.

(h)Excludes unamortized discount, net totaling $35.8 million and unamortized deferred financing costs totaling $26.0 million as of December 31, 2022.


						Investing for the long runTM \| 3

W. P. Carey Inc.

Financial Results

Fourth Quarter 2022


						Investing for the long runTM \| 4

W. P. Carey Inc.

Financial Results – Fourth Quarter 2022


Consolidated Statements of Income – Last Five Quarters

In thousands, except share and per share amounts.


	Three Months Ended
	Dec. 31, 2022		Sep. 30, 2022		Jun. 30, 2022		Mar. 31, 2022		Dec. 31, 2021
Revenues
Real Estate:
Lease revenues	$	347,636	$	331,902	$	314,354	$	307,725	$	305,093
Income from direct financing leases and loans receivable	17,472		20,637		17,778		18,379		15,637
Operating property revenues	28,951		21,350		5,064		3,865		4,004
Other lease-related income (a)	8,083		8,192		2,591		14,122		45,590
	402,142		382,081		339,787		344,091		370,324
Investment Management:
Asset management and other revenue	383		1,197		3,467		3,420		3,571
Reimbursable costs from affiliates	104		344		1,143		927		985
	487		1,541		4,610		4,347		4,556
	402,629		383,622		344,397		348,438		374,880
Operating Expenses
Depreciation and amortization	140,749		132,181		115,080		115,393		135,662
General and administrative	22,728		22,299		20,841		23,084		19,591
Reimbursable tenant costs	21,084		18,874		16,704		16,960		16,475
Property expenses, excluding reimbursable tenant costs	13,879		11,244		11,851		13,779		11,466
Impairment charges — real estate	12,734		—		6,206		20,179		7,945
Operating property expenses	11,719		9,357		3,191		2,787		2,887
Stock-based compensation expense	9,739		5,511		9,758		7,833		6,091
Merger and other expenses (c)	2,058		17,667		1,984		(2,322)		(563)
Reimbursable costs from affiliates	104		344		1,143		927		985
Impairment charges — Investment Management goodwill (b)	—		29,334		—		—		—
	234,794		246,811		186,758		198,620		200,539
Other Income and Expenses
Other gains and (losses) (e)	97,059		(15,020)		(21,746)		35,745		(28,461)
Interest expense	(67,668)		(59,022)		(46,417)		(46,053)		(47,208)
Non-operating income (g)	6,526		9,263		5,974		8,546		3,156
Earnings (losses) from equity method investments (f)	6,032		11,304		7,401		4,772		(6,675)
Gain (loss) on sale of real estate, net	5,845		(4,736)		31,119		11,248		9,511
Gain on change in control of interests (d)	—		33,931		—		—		—
	47,794		(24,280)		(23,669)		14,258		(69,677)
Income before income taxes	215,629		112,531		133,970		164,076		104,664
Provision for income taxes	(6,126)		(8,263)		(6,252)		(7,083)		(5,052)
Net Income	209,503		104,268		127,718		156,993		99,612
Net loss (income) attributable to noncontrolling interests	35		660		(40)		2		(50)
Net Income Attributable to W. P. Carey	$	209,538	$	104,928	$	127,678	$	156,995	$	99,562

Basic Earnings Per Share	$	1.00	$	0.52	$	0.66	$	0.82	$	0.53
Diluted Earnings Per Share	$	1.00	$	0.51	$	0.66	$	0.82	$	0.53
Weighted-Average Shares Outstanding
Basic	209,281,888		203,093,553		194,019,451		191,911,414		187,630,036
Diluted	209,822,650		204,098,116		194,763,695		192,416,642		188,317,117

Dividends Declared Per Share	$	1.065	$	1.061	$	1.059	$	1.057	$	1.055

________

(a)Amount for the three months ended December 31, 2021 includes $37.8 million of lease termination fees that was determined to be non-core income and thus excluded from AFFO.

(b)Amount for the three months ended September 30, 2022 represents an impairment charge recognized on goodwill within our Investment Management segment, since future Investment Management cash flows are expected to be minimal.

(c)Amounts are primarily comprised of costs incurred in connection with the CPA:18 Merger and/or reversals of estimated liabilities for German real estate transfer taxes that were previously recorded in connection with mergers in prior years.

(d)Amount for the three months ended September 30, 2022 represents gains recognized on (i) the remaining interests in four investments acquired in the CPA:18 Merger, which we had previously accounted for under the equity method, and (ii) our previously held interest in shares of CPA:18 – Global common stock in connection with the CPA:18 Merger.

(e)Amount for the three months ended December 31, 2022 is primarily comprised of net gains on foreign currency exchange rate movements of $57.9 million and a mark-to-market unrealized gain for our investment in shares of Lineage Logistics of $38.6 million.


						Investing for the long runTM \| 5

W. P. Carey Inc.

Financial Results – Fourth Quarter 2022

(f)Amounts for the three months ended March 31, 2022 and December 31, 2021 include non-cash impairment charges of $4.6 million and $13.2 million, respectively, recognized on certain equity method investments in real estate.

(g)Amount for the three months ended December 31, 2022 is comprised of realized gains on foreign currency exchange derivatives of $6.1 million and interest income on deposits of $0.4 million.


						Investing for the long runTM \| 6

W. P. Carey Inc.

Financial Results – Fourth Quarter 2022


Statements of Income, Real Estate – Last Five Quarters

In thousands, except share and per share amounts.


	Three Months Ended
	Dec. 31, 2022		Sep. 30, 2022		Jun. 30, 2022		Mar. 31, 2022		Dec. 31, 2021
Revenues
Lease revenues	$	347,636	$	331,902	$	314,354	$	307,725	$	305,093
Income from direct financing leases and loans receivable	17,472		20,637		17,778		18,379		15,637
Operating property revenues	28,951		21,350		5,064		3,865		4,004
Other lease-related income (a)	8,083		8,192		2,591		14,122		45,590
	402,142		382,081		339,787		344,091		370,324
Operating Expenses
Depreciation and amortization	140,749		132,181		115,080		115,393		135,662
General and administrative	22,728		22,299		20,841		23,084		19,591
Reimbursable tenant costs	21,084		18,874		16,704		16,960		16,475
Property expenses, excluding reimbursable tenant costs	13,879		11,244		11,851		13,779		11,466
Impairment charges — real estate	12,734		—		6,206		20,179		7,945
Operating property expenses	11,719		9,357		3,191		2,787		2,887
Stock-based compensation expense	9,739		5,511		9,758		7,833		6,091
Merger and other expenses (b)	2,058		17,667		1,984		(2,325)		(599)
	234,690		217,133		185,615		197,690		199,518
Other Income and Expenses
Other gains and (losses) (c)	96,846		(13,960)		(20,155)		34,418		(27,131)
Interest expense	(67,668)		(59,022)		(46,417)		(46,053)		(47,208)
Non-operating income	6,508		9,264		5,975		8,542		3,158
Earnings (losses) from equity method investments in real estate (e)	6,032		6,447		4,529		(787)		(9,121)
Gain (loss) on sale of real estate, net	5,845		(4,736)		31,119		11,248		9,511
Gain on change in control of interests (d)	—		11,405		—		—		—
	47,563		(50,602)		(24,949)		7,368		(70,791)
Income before income taxes	215,015		114,346		129,223		153,769		100,015
Provision for income taxes	(4,908)		(3,631)		(5,955)		(6,913)		(5,331)
Net Income from Real Estate	210,107		110,715		123,268		146,856		94,684
Net loss (income) attributable to noncontrolling interests	35		660		(40)		2		(50)
Net Income from Real Estate Attributable to W. P. Carey	$	210,142	$	111,375	$	123,228	$	146,858	$	94,634

Basic Earnings Per Share	$	1.00	$	0.55	$	0.64	$	0.77	$	0.50
Diluted Earnings Per Share	$	1.00	$	0.54	$	0.64	$	0.77	$	0.50
Weighted-Average Shares Outstanding
Basic	209,281,888		203,093,553		194,019,451		191,911,414		187,630,036
Diluted	209,822,650		204,098,116		194,763,695		192,416,642		188,317,117

________

(a)Amount for the three months ended December 31, 2021 includes $37.8 million of lease termination fees that was determined to be non-core income and thus excluded from AFFO.

(b)Amounts are primarily comprised of costs incurred in connection with the CPA:18 Merger and/or reversals of estimated liabilities for German real estate transfer taxes that were previously recorded in connection with mergers in prior years.

(c)Amount for the three months ended December 31, 2022 is primarily comprised of net gains on foreign currency exchange rate movements of $57.5 million and a mark-to-market unrealized gain for our investment in shares of Lineage Logistics of $38.6 million.

(d)Amount for the three months ended September 30, 2022 represents a gain recognized on the remaining interests in four investments acquired in the CPA:18 Merger, which we had previously accounted for under the equity method.

(e)Amounts for the three months ended March 31, 2022 and December 31, 2021 include non-cash impairment charges of $4.6 million and $13.2 million, respectively, recognized on certain equity method investments in real estate.


						Investing for the long runTM \| 7

W. P. Carey Inc.

Financial Results – Fourth Quarter 2022


Statements of Income, Investment Management – Last Five Quarters

In thousands, except share and per share amounts.


	Three Months Ended
	Dec. 31, 2022		Sep. 30, 2022		Jun. 30, 2022		Mar. 31, 2022		Dec. 31, 2021
Revenues
Asset management and other revenue	$	383	$	1,197	$	3,467	$	3,420	$	3,571
Reimbursable costs from affiliates	104		344		1,143		927		985
	487		1,541		4,610		4,347		4,556
Operating Expenses
Reimbursable costs from affiliates	104		344		1,143		927		985
Impairment charges — Investment Management goodwill (a)	—		29,334		—		—		—
Merger and other expenses	—		—		—		3		36
	104		29,678		1,143		930		1,021
Other Income and Expenses
Other gains and (losses)	213		(1,060)		(1,591)		1,327		(1,330)
Non-operating income (loss)	18		(1)		(1)		4		(2)
Gain on change in control of interests (b)	—		22,526		—		—		—
Earnings from equity method investments in the Managed Programs	—		4,857		2,872		5,559		2,446
	231		26,322		1,280		6,890		1,114
Income (loss) before income taxes	614		(1,815)		4,747		10,307		4,649
(Provision for) benefit from income taxes	(1,218)		(4,632)		(297)		(170)		279
Net (Loss) Income from Investment Management Attributable to W. P. Carey	$	(604)	$	(6,447)	$	4,450	$	10,137	$	4,928

Basic (Loss) Earnings Per Share	$	0.00	$	(0.03)	$	0.02	$	0.05	$	0.03
Diluted (Loss) Earnings Per Share	$	0.00	$	(0.03)	$	0.02	$	0.05	$	0.03
Weighted-Average Shares Outstanding
Basic	209,281,888		203,093,553		194,019,451		191,911,414		187,630,036
Diluted	209,822,650		204,098,116		194,763,695		192,416,642		188,317,117

________

(a)Amount for the three months ended September 30, 2022 represents an impairment charge recognized on goodwill within our Investment Management segment, since future Investment Management cash flows are expected to be minimal.

(b)Amount for the three months ended September 30, 2022 represents a gain recognized on our previously held interest in shares of CPA:18 – Global common stock in connection with the CPA:18 Merger.


						Investing for the long runTM \| 8

W. P. Carey Inc.

Financial Results – Fourth Quarter 2022


FFO and AFFO, Consolidated – Last Five Quarters

In thousands, except share and per share amounts.


	Three Months Ended
	Dec. 31, 2022		Sep. 30, 2022		Jun. 30, 2022		Mar. 31, 2022		Dec. 31, 2021
Net income attributable to W. P. Carey	$	209,538	$	104,928	$	127,678	$	156,995	$	99,562
Adjustments:
Depreciation and amortization of real property	140,157		131,628		114,333		114,646		134,149
Impairment charges — real estate	12,734		—		6,206		20,179		7,945
(Gain) loss on sale of real estate, net	(5,845)		4,736		(31,119)		(11,248)		(9,511)
Gain on change in control of interests (a)	—		(33,931)		—		—		—
Impairment charges — Investment Management goodwill (b)	—		29,334		—		—		—
Proportionate share of adjustments to earnings from equity method investments (c) (d)	2,296		2,242		2,934		7,683		15,183
Proportionate share of adjustments for noncontrolling interests (e)	(294)		(189)		(4)		(4)		(4)
Total adjustments	149,048		133,820		92,350		131,256		147,762
FFO (as defined by NAREIT) Attributable to W. P. Carey (f)	358,586		238,748		220,028		288,251		247,324
Adjustments:
Other (gains) and losses (g)	(97,059)		15,020		21,746		(35,745)		28,461
Straight-line and other leasing and financing adjustments (h)	(14,766)		(14,326)		(14,492)		(10,847)		(53,380)
Stock-based compensation	9,739		5,511		9,758		7,833		6,091
Above- and below-market rent intangible lease amortization, net	8,652		11,186		10,548		11,004		15,082
Amortization of deferred financing costs	5,705		5,223		3,147		3,128		3,239
Tax (benefit) expense – deferred and other	(3,325)		1,163		(355)		(1,242)		(2,507)
Merger and other expenses (i)	2,058		17,667		1,984		(2,322)		(563)
Other amortization and non-cash items	490		359		530		552		560
Proportionate share of adjustments to earnings from equity method investments (d)	(319)		(2,156)		1,486		(1,781)		1,303
Proportionate share of adjustments for noncontrolling interests (e)	(85)		(673)		(6)		(5)		(5)
Total adjustments	(88,910)		38,974		34,346		(29,425)		(1,719)
AFFO Attributable to W. P. Carey (f)	$	269,676	$	277,722	$	254,374	$	258,826	$	245,605

Summary
FFO (as defined by NAREIT) attributable to W. P. Carey (f)	$	358,586	$	238,748	$	220,028	$	288,251	$	247,324
FFO (as defined by NAREIT) attributable to W. P. Carey per diluted share (f)	$	1.70	$	1.17	$	1.13	$	1.50	$	1.31
AFFO attributable to W. P. Carey (f)	$	269,676	$	277,722	$	254,374	$	258,826	$	245,605
AFFO attributable to W. P. Carey per diluted share (f)	$	1.29	$	1.36	$	1.31	$	1.35	$	1.30
Diluted weighted-average shares outstanding	209,822,650		204,098,116		194,763,695		192,416,642		188,317,117

________

(a)Amount for the three months ended September 30, 2022 represents gains recognized on (i) the remaining interests in four investments acquired in the CPA:18 Merger, which we had previously accounted for under the equity method, and (ii) our previously held interest in shares of CPA:18 – Global common stock in connection with the CPA:18 Merger.

(c)Amounts for the three months ended March 31, 2022 and December 31, 2021 include non-cash impairment charges of $4.6 million and $13.2 million, respectively, recognized on certain equity method investments in real estate.

(d)Equity income, including amounts that are not typically recognized for FFO and AFFO, is recognized within Earnings from equity method investments on the consolidated statements of income. This represents adjustments to equity income to reflect FFO and AFFO on a pro rata basis.

(e)Adjustments disclosed elsewhere in this reconciliation are on a consolidated basis. This adjustment reflects our FFO or AFFO on a pro rata basis.

(f)FFO and AFFO are non-GAAP measures. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of our non-GAAP measures.

(g)Amount for the three months ended December 31, 2022 is primarily comprised of net gains on foreign currency exchange rate movements of $57.9 million and a mark-to-market unrealized gain for our investment in shares of Lineage Logistics of $38.6 million.

(h)Amount for the three months ended December 31, 2021 includes an adjustment to exclude $37.8 million of lease termination fees received from a tenant. as such amount was determined to be non-core income.

(i)Amounts are primarily comprised of costs incurred in connection with the CPA:18 Merger and/or reversals of estimated liabilities for German real estate transfer taxes that were previously recorded in connection with mergers in prior years.


						Investing for the long runTM \| 9

W. P. Carey Inc.

Financial Results – Fourth Quarter 2022


FFO and AFFO, Real Estate – Last Five Quarters

In thousands, except share and per share amounts.


	Three Months Ended
	Dec. 31, 2022		Sep. 30, 2022		Jun. 30, 2022		Mar. 31, 2022		Dec. 31, 2021
Net income from Real Estate attributable to W. P. Carey	$	210,142	$	111,375	$	123,228	$	146,858	$	94,634
Adjustments:
Depreciation and amortization of real property	140,157		131,628		114,333		114,646		134,149
Impairment charges — real estate	12,734		—		6,206		20,179		7,945
(Gain) loss on sale of real estate, net	(5,845)		4,736		(31,119)		(11,248)		(9,511)
Gain on change in control of interests (a)	—		(11,405)		—		—		—
Proportionate share of adjustments to earnings from equity method investments (b) (c)	2,296		2,242		2,934		7,683		15,183
Proportionate share of adjustments for noncontrolling interests (d)	(294)		(189)		(4)		(4)		(4)
Total adjustments	149,048		127,012		92,350		131,256		147,762
FFO (as defined by NAREIT) Attributable to W. P. Carey – Real Estate (e)	359,190		238,387		215,578		278,114		242,396
Adjustments:

Other (gains) and losses (h)	(96,846)		13,960		20,155		(34,418)		27,131
Straight-line and other leasing and financing adjustments (g)	(14,766)		(14,326)		(14,492)		(10,847)		(53,380)
Stock-based compensation	9,739		5,511		9,758		7,833		6,091
Above- and below-market rent intangible lease amortization, net	8,652		11,186		10,548		11,004		15,082
Amortization of deferred financing costs	5,705		5,223		3,147		3,128		3,239
Tax (benefit) – deferred and other	(3,862)		(2,789)		(324)		(1,189)		(1,851)
Merger and other expenses (f)	2,058		17,667		1,984		(2,325)		(599)
Other amortization and non-cash items	490		359		530		552		560
Proportionate share of adjustments to earnings from equity method investments (c)	(320)		(938)		368		167		325
Proportionate share of adjustments for noncontrolling interests (d)	(85)		(673)		(6)		(5)		(5)
Total adjustments	(89,235)		35,180		31,668		(26,100)		(3,407)
AFFO Attributable to W. P. Carey – Real Estate (e)	$	269,955	$	273,567	$	247,246	$	252,014	$	238,989

Summary
FFO (as defined by NAREIT) attributable to W. P. Carey – Real Estate (e)	$	359,190	$	238,387	$	215,578	$	278,114	$	242,396
FFO (as defined by NAREIT) attributable to W. P. Carey per diluted share – Real Estate (e)	$	1.70	$	1.17	$	1.11	$	1.45	$	1.29
AFFO attributable to W. P. Carey – Real Estate (e)	$	269,955	$	273,567	$	247,246	$	252,014	$	238,989
AFFO attributable to W. P. Carey per diluted share – Real Estate (e)	$	1.29	$	1.34	$	1.27	$	1.31	$	1.27
Diluted weighted-average shares outstanding	209,822,650		204,098,116		194,763,695		192,416,642		188,317,117

________

(a)Amount for the three months ended September 30, 2022 represents a gain recognized on the remaining interests in four investments acquired in the CPA:18 Merger, which we had previously accounted for under the equity method.

(b)Amounts for the three months ended March 31, 2022 and December 31, 2021 include non-cash impairment charges of $4.6 million and $13.2 million, respectively, recognized on certain equity method investments in real estate.

(c)Equity income, including amounts that are not typically recognized for FFO and AFFO, is recognized within Earnings from equity method investments on the consolidated statements of income. This represents adjustments to equity income to reflect FFO and AFFO on a pro rata basis.

(d)Adjustments disclosed elsewhere in this reconciliation are on a consolidated basis. This adjustment reflects our FFO or AFFO on a pro rata basis.

(e)FFO and AFFO are non-GAAP measures. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of our non-GAAP measures.

(f)Amount for the three months ended December 31, 2022 is primarily comprised of net gains on foreign currency exchange rate movements of $57.5 million and a mark-to-market unrealized gain for our investment in shares of Lineage Logistics of $38.6 million.

(g)Amount for the three months ended December 31, 2021 includes an adjustment to exclude $37.8 million of lease termination fees received from a tenant. as such amount was determined to be non-core income.

(h)Amounts are primarily comprised of costs incurred in connection with the CPA:18 Merger and/or reversals of estimated liabilities for German real estate transfer taxes that were previously recorded in connection with mergers in prior years.


						Investing for the long runTM \| 10

W. P. Carey Inc.

Financial Results – Fourth Quarter 2022


FFO and AFFO, Investment Management – Last Five Quarters

In thousands, except share and per share amounts.


	Three Months Ended
	Dec. 31, 2022		Sep. 30, 2022		Jun. 30, 2022		Mar. 31, 2022		Dec. 31, 2021
Net (loss) income from Investment Management attributable to W. P. Carey	$	(604)	$	(6,447)	$	4,450	$	10,137	$	4,928
Adjustments:
Impairment charges — Investment Management goodwill (a)	—		29,334		—		—		—
Gain on change in control of interests (b)	—		(22,526)		—		—		—
Total adjustments	—		6,808		—		—		—
FFO (as defined by NAREIT) Attributable to W. P. Carey – Investment Management (c)	(604)		361		4,450		10,137		4,928
Adjustments:
Tax expense (benefit) – deferred and other	537		3,952		(31)		(53)		(656)
Other (gains) and losses	(213)		1,060		1,591		(1,327)		1,330
Merger and other expenses	—		—		—		3		36
Proportionate share of adjustments to earnings from equity method investments (d)	1		(1,218)		1,118		(1,948)		978
Total adjustments	325		3,794		2,678		(3,325)		1,688
AFFO Attributable to W. P. Carey – Investment Management (c)	$	(279)	$	4,155	$	7,128	$	6,812	$	6,616

Summary
FFO (as defined by NAREIT) attributable to W. P. Carey – Investment Management (c)	$	(604)	$	361	$	4,450	$	10,137	$	4,928
FFO (as defined by NAREIT) attributable to W. P. Carey per diluted share – Investment Management (c)	$	0.00	$	0.00	$	0.02	$	0.05	$	0.02
AFFO attributable to W. P. Carey – Investment Management (c)	$	(279)	$	4,155	$	7,128	$	6,812	$	6,616
AFFO attributable to W. P. Carey per diluted share – Investment Management (c)	$	0.00	$	0.02	$	0.04	$	0.04	$	0.03
Diluted weighted-average shares outstanding	209,822,650		204,098,116		194,763,695		192,416,642		188,317,117

________

(b)Amount for the three months ended September 30, 2022 represents a gain recognized on our previously held interest in shares of CPA:18 – Global common stock in connection with the CPA:18 Merger.

(c)FFO and AFFO are non-GAAP measures. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of our non-GAAP measures.


						Investing for the long runTM \| 11

W. P. Carey Inc.

Financial Results – Fourth Quarter 2022


Elements of Pro Rata Statement of Income and AFFO Adjustments

In thousands. For the three months ended December 31, 2022.

We believe that the table below is useful for investors to help them better understand our business by illustrating the impact of each of our AFFO adjustments on our GAAP statement of income line items. This presentation is not an alternative to the GAAP statement of income, nor is AFFO an alternative to net income as determined by GAAP.


	Equity Method Investments (a)		Noncontrolling Interests (b)		AFFO Adjustments
Revenues
Real Estate:
Lease revenues	$	5,698	$	(476)	$	(9,023)	(c)
Income from direct financing leases and loans receivable	—		—		444
Operating property revenues:
Hotel revenues	—		—		—
Self-storage revenues	2,397		(21)		—
Student housing revenues	—		(159)		—
Other lease-related income	1		—		—

Investment Management:
Asset management and other revenue	—		—		—
Reimbursable costs from affiliates	—		—		—

Operating Expenses
Depreciation and amortization	2,140		(295)		(142,063)		(d)
General and administrative	—		—		—
Reimbursable tenant costs	229		(80)		—
Property expenses, excluding reimbursable tenant costs	(424)		(32)		(394)		(e)
Impairment charges — real estate	—		—		(12,734)		(e)
Operating property expenses:
Hotel expenses	—		—		—
Self-storage expenses	801		(21)		(27)
Student housing expenses	—		(75)		—
Stock-based compensation expense	—		—		(9,739)		(e)
Merger and other expenses	—		—		(2,058)		(f)
Reimbursable costs from affiliates	—		—		—

Other Income and Expenses
Other gains and (losses)	—		52		(97,110)		(g)
Interest expense	(108)		166		5,707		(h)
Non-operating income	1		(1)		—
Earnings from equity method investments:
Income related to joint ventures	(5,036)		—		2,044		(i)
Income related to our ownership in the Managed Programs	—		—		—
Gain on sale of real estate, net	—		—		(5,845)

Provision for income taxes	(207)		(11)		(3,094)		(j)
Net loss attributable to noncontrolling interests	—		(53)		—

________

(a)Represents the break-out by line item of amounts recorded in Earnings from equity method investments.

(b)Represents the break-out by line item of amounts recorded in Net income attributable to noncontrolling interests.

(c)Represents the reversal of amortization of above- or below-market lease intangibles of $8.7 million and the elimination of non-cash amounts related to straight-line rent and other of $17.7 million.

(d)Adjustment is a non-cash adjustment excluding corporate depreciation and amortization.

(e)Adjustment to exclude a non-cash item.

(f)Primarily comprised of costs incurred in connection with the CPA:18 Merger.

(g)Represents eliminations of gains (losses) related to the extinguishment of debt, unrealized gains (losses) on foreign currency exchange rate movements, gains (losses) on marketable securities, non-cash allowance for credit losses on loans receivable and direct financing leases, and other items.

(h)Represents the elimination of non-cash components of interest expense, such as deferred financing costs, debt premiums and discounts.

(i)Adjustments to include our pro rata share of AFFO adjustments from equity method investments.

(j)Primarily represents the elimination of deferred taxes.


						Investing for the long runTM \| 12

W. P. Carey Inc.

Financial Results – Fourth Quarter 2022


Capital Expenditures

In thousands. For the three months ended December 31, 2022.


Tenant Improvements and Leasing Costs
Tenant improvements	$	4,938
Leasing costs	1,221
Tenant Improvements and Leasing Costs	6,159

Maintenance Capital Expenditures
Net-lease properties	2,507
Operating properties	681
Maintenance Capital Expenditures	3,188

Total: Tenant Improvements and Leasing Costs, and Maintenance Capital Expenditures	$	9,347

Non-Maintenance Capital Expenditures
Net-lease properties	$	423
Operating properties	—
Non-Maintenance Capital Expenditures	$	423

Other Capital Expenditures
Net-lease properties	$	1,682
Operating properties	—
Other Capital Expenditures	$	1,682


						Investing for the long runTM \| 13

W. P. Carey Inc.

Balance Sheets and Capitalization

Fourth Quarter 2022


						Investing for the long runTM \| 14

W. P. Carey Inc.

Balance Sheets and Capitalization – Fourth Quarter 2022


Consolidated Balance Sheets

In thousands, except share and per share amounts.


	December 31,
	2022		2021
Assets
Investments in real estate:
Land, buildings and improvements — net lease and other	$	13,338,857	$	11,791,734
Land, buildings and improvements — operating properties	1,095,892		83,673
Net investments in direct financing leases and loans receivable	771,761		813,577
In-place lease intangible assets and other	2,659,750		2,386,000
Above-market rent intangible assets	833,751		843,410
Investments in real estate	18,700,011		15,918,394
Accumulated depreciation and amortization (a)	(3,269,057)		(2,889,294)
Assets held for sale, net	57,944		8,269
Net investments in real estate	15,488,898		13,037,369
Equity method investments (b)	327,502		356,637
Cash and cash equivalents	167,996		165,427
Due from affiliates	919		1,826
Other assets, net	1,079,308		1,017,842
Goodwill	1,037,412		901,529
Total assets	$	18,102,035	$	15,480,630

Liabilities and Equity
Debt:
Senior unsecured notes, net	$	5,916,400	$	5,701,913
Unsecured term loans, net	552,539		310,583
Unsecured revolving credit facility	276,392		410,596
Non-recourse mortgages, net	1,132,417		368,524
Debt, net	7,877,748		6,791,616
Accounts payable, accrued expenses and other liabilities	623,843		572,846
Below-market rent and other intangible liabilities, net	184,584		183,286
Deferred income taxes	178,959		145,572
Dividends payable	228,257		203,859
Total liabilities	9,093,391		7,897,179

Preferred stock, $0.001 par value, 50,000,000 shares authorized; none issued	—		—
Common stock, $0.001 par value, 450,000,000 shares authorized; 210,620,949 and 190,013,751 shares, respectively, issued and outstanding	211		190
Additional paid-in capital	11,706,836		9,977,686
Distributions in excess of accumulated earnings	(2,486,633)		(2,224,231)
Deferred compensation obligation	57,012		49,810
Accumulated other comprehensive loss	(283,780)		(221,670)
Total stockholders' equity	8,993,646		7,581,785
Noncontrolling interests	14,998		1,666
Total equity	9,008,644		7,583,451
Total liabilities and equity	$	18,102,035	$	15,480,630

________

(a)Includes $1.7 billion and $1.5 billion of accumulated depreciation on buildings and improvements as of December 31, 2022 and 2021, respectively, and $1.6 billion and $1.4 billion of accumulated amortization on lease intangibles as of December 31, 2022 and 2021, respectively.

(b)Our equity method investments in real estate totaled $325.3 million and $291.9 million as of December 31, 2022 and 2021, respectively. Our equity method investments in the Managed Programs totaled $2.2 million and $64.7 million as of December 31, 2022 and 2021, respectively.


						Investing for the long runTM \| 15

W. P. Carey Inc.

Balance Sheets and Capitalization – Fourth Quarter 2022


Capitalization

In thousands, except share and per share amounts. As of December 31, 2022.


Description	Shares	Share Price		Market Value
Equity
Common equity	210,620,949	$	78.15	$	16,460,027
Preferred equity				—
Total Equity Market Capitalization				16,460,027

				Outstanding Balance (a)
Pro Rata Debt
Non-recourse mortgages				1,225,103
Unsecured term loans (due February 20, 2025)				554,014
Unsecured revolving credit facility (due February 20, 2025)				276,392
Senior unsecured notes:
Due April 1, 2024 (USD)				500,000
Due July 19, 2024 (EUR)				533,300
Due February 1, 2025 (USD)				450,000
Due April 9, 2026 (EUR)				533,300
Due October 1, 2026 (USD)				350,000
Due April 15, 2027 (EUR)				533,300
Due April 15, 2028 (EUR)				533,300
Due July 15, 2029 (USD)				325,000
Due September 28, 2029 (EUR)				159,990
Due June 1, 2030 (EUR)				559,965
Due February 1, 2031 (USD)				500,000
Due February 1, 2032 (USD)				350,000
Due September 28, 2032 (EUR)				213,320
Due April 1, 2033 (USD)				425,000
Total Pro Rata Debt				8,021,984

Total Capitalization				$	24,482,011

________

(a)Excludes unamortized discount, net totaling $35.8 million and unamortized deferred financing costs totaling $26.0 million as of December 31, 2022.


						Investing for the long runTM \| 16

W. P. Carey Inc.

Balance Sheets and Capitalization – Fourth Quarter 2022


Debt Overview

Dollars in thousands. Pro rata. As of December 31, 2022.


	USD-Denominated				EUR-Denominated				Other Currencies (a)				Total
													Outstanding Balance
	Out-standing Balance (in USD)		Weigh-ted Avg. Interest Rate		Out-standing Balance (in USD)		Weigh-ted Avg. Interest Rate		Out-standing Balance (in USD)		Weigh-ted Avg. Interest Rate		Amount (in USD)		% of Total		Weigh-ted Avg. Interest Rate		Weigh-ted Avg. Maturity (Years)
Non-Recourse Debt (b) (c)
Fixed	$	648,093	4.8	%	$	150,043	2.6	%	$	49,815	4.2	%	$	847,951	10.6	%	4.4	%	2.0
Variable:
Floating	25,680		4.6	%	98,789		2.3	%	83,497		6.5	%	207,966		2.6	%	4.3	%	0.9
Swapped	34,918		4.7	%	123,120		2.5	%	—		—	%	158,038		2.0	%	3.0	%	1.4
Capped	—		—	%	11,148		3.8	%	—		—	%	11,148		0.1	%	3.8	%	0.6
Total Pro Rata Non-Recourse Debt	708,691		4.8	%	383,100		2.5	%	133,312		5.6	%	1,225,103		15.3	%	4.2	%	1.7

Recourse Debt (b) (c)
Fixed – Senior unsecured notes:
Due April 1, 2024	500,000		4.6	%	—		—	%	—		—	%	500,000		6.2	%	4.6	%	1.3
Due July 19, 2024	—		—	%	533,300		2.3	%	—		—	%	533,300		6.6	%	2.3	%	1.6
Due February 1, 2025	450,000		4.0	%	—		—	%	—		—	%	450,000		5.7	%	4.0	%	2.1
Due April 9, 2026	—		—	%	533,300		2.3	%	—		—	%	533,300		6.6	%	2.3	%	3.3
Due October 1, 2026	350,000		4.3	%	—		—	%	—		—	%	350,000		4.4	%	4.3	%	3.8
Due April 15, 2027	—		—	%	533,300		2.1	%	—		—	%	533,300		6.6	%	2.1	%	4.3
Due April 15, 2028	—		—	%	533,300		1.4	%	—		—	%	533,300		6.6	%	1.4	%	5.3
Due July 15, 2029	325,000		3.9	%	—		—	%	—		—	%	325,000		4.1	%	3.9	%	6.5
Due September 28, 2029	—		—	%	159,990		3.4	%	—		—	%	159,990		2.0	%	3.4	%	6.7
Due June 1, 2030	—		—	%	559,965		1.0	%	—		—	%	559,965		7.0	%	1.0	%	7.4
Due February 1, 2031	500,000		2.4	%	—		—	%	—		—	%	500,000		6.2	%	2.4	%	8.1
Due February 1, 2032	350,000		2.5	%	—		—	%	—		—	%	350,000		4.4	%	2.5	%	9.1
Due September 28, 2032	—		—	%	213,320		3.7	%	—		—	%	213,320		2.7	%	3.7	%	9.8
Due April 1, 2033	425,000		2.3	%	—		—	%	—		—	%	425,000		5.3	%	2.3	%	10.3
Total Senior Unsecured Notes	2,900,000		3.4	%	3,066,475		2.0	%	—		—	%	5,966,475		74.4	%	2.7	%	5.3
Variable:
Unsecured term loans (due February 20, 2025) (d)	—		—	%	229,319		2.9	%	324,695		4.3	%	554,014		6.9	%	3.7	%	2.1
Unsecured revolving credit facility (due February 20, 2025) (e) (f)	—		—	%	258,117		2.7	%	18,275		0.8	%	276,392		3.4	%	2.6	%	2.1
Total Recourse Debt	2,900,000		3.4	%	3,553,911		2.1	%	342,970		4.1	%	6,796,881		84.7	%	2.8	%	4.9

Total Pro Rata Debt Outstanding	$	3,608,691	3.7	%	$	3,937,011	2.1	%	$	476,282	4.6	%	$	8,021,984	100.0	%	3.0	%	4.4

________

(a)Other currencies include debt denominated in British pound sterling, Norwegian krone and Japanese yen.

(b)Debt data is presented on a pro rata basis. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata.

(c)Excludes unamortized discount, net totaling $35.8 million and unamortized deferred financing costs totaling $26.0 million as of December 31, 2022.

(d)We incurred interest at SONIA plus 0.85% or EURIBOR plus 0.85% on our Unsecured term loans.

(e)Depending on the currency, we incurred interest on our Unsecured revolving credit facility at LIBOR plus 0.775% or TIBOR plus 0.775%. Each has a floor of 0.00% under the terms of our credit agreement. Availability under our Unsecured revolving credit facility (net of amounts reserved for standby letters of credit) was approximately $1.5 billion as of December 31, 2022.

(f)In January 2023, we amended our credit facility to transition from LIBOR to SOFR.


						Investing for the long runTM \| 17

W. P. Carey Inc.

Balance Sheets and Capitalization – Fourth Quarter 2022


Debt Maturity

Dollars in thousands. Pro rata. As of December 31, 2022.


	Real Estate			Debt
	Number of Properties (a)			Weighted-Average Interest Rate				Total Outstanding Balance (b) (c)		% of Total Outstanding Balance
Year of Maturity		ABR (a)				Balloon
Non-Recourse Debt
2023	26	$	59,790	3.9	%	$	427,307	$	431,933	5.4	%
2024	52	36,710		4.0	%	254,997		263,583		3.3	%
2025	47	36,579		4.4	%	366,784		385,648		4.8	%
2026	20	17,651		4.9	%	96,945		116,969		1.5	%
2027	1	—		4.3	%	21,450		21,450		0.3	%
2031	1	1,054		6.0	%	—		2,921		—	%
2039	1	719		5.3	%	—		2,599		—	%
Total Pro Rata Non-Recourse Debt	148	$	152,503	4.2	%	$	1,167,483	1,225,103		15.3	%

Recourse Debt
Fixed – Senior unsecured notes:
Due April 1, 2024 (USD)				4.6	%			500,000		6.2	%
Due July 19, 2024 (EUR)				2.3	%			533,300		6.6	%
Due February 1, 2025 (USD)				4.0	%			450,000		5.7	%
Due April 9, 2026 (EUR)				2.3	%			533,300		6.6	%
Due October 1, 2026 (USD)				4.3	%			350,000		4.4	%
Due April 15, 2027 (EUR)				2.1	%			533,300		6.6	%
Due April 15, 2028 (EUR)				1.4	%			533,300		6.6	%
Due July 15, 2029 (USD)				3.9	%			325,000		4.1	%
Due September 28, 2029 (EUR)				3.4	%			159,990		2.0	%
Due June 1, 2030 (EUR)				1.0	%			559,965		7.0	%
Due February 1, 2031 (USD)				2.4	%			500,000		6.2	%
Due February 1, 2032 (USD)				2.5	%			350,000		4.4	%
Due September 28, 2032 (EUR)				3.7	%			213,320		2.7	%
Due April 1, 2033 (USD)				2.3	%			425,000		5.3	%
Total Senior Unsecured Notes				2.7	%			5,966,475		74.4	%
Variable:
Unsecured term loans (due February 20, 2025) (d)				3.7	%			554,014		6.9	%
Unsecured revolving credit facility (due February 20, 2025) (e) (f)				2.6	%			276,392		3.4	%
Total Recourse Debt				2.8	%			6,796,881		84.7	%

Total Pro Rata Debt Outstanding				3.0	%			$	8,021,984	100.0	%

________

(a)Represents the number of properties and ABR associated with the debt that is maturing in each respective year.

(b)Debt maturity data is presented on a pro rata basis. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata. Total outstanding balance includes balloon payments and scheduled amortization for our non-recourse debt.

(c)Excludes unamortized discount, net totaling $35.8 million and unamortized deferred financing costs totaling $26.0 million as of December 31, 2022.

(d)We incurred interest at SONIA plus 0.85% or EURIBOR plus 0.85% on our Unsecured term loans.

(f)In January 2023, we amended our credit facility to transition from LIBOR to SOFR.


						Investing for the long runTM \| 18

W. P. Carey Inc.

Balance Sheets and Capitalization – Fourth Quarter 2022


Senior Unsecured Notes

As of December 31, 2022.

Ratings

Issuer

Senior Unsecured Notes

Ratings Agency

Rating

Outlook

Rating

Moody's

Baa1

Stable

Baa1

Standard & Poor’s (a)

BBB+

Stable

BBB+

________

(a)In January 2023, Standard & Poor’s Ratings Services upgraded our issuer credit rating and issue-level rating on our unsecured notes from BBB with a positive outlook, to BBB+ with a stable outlook.

Senior Unsecured Note Covenants

The following is a summary of the key financial covenants for the Senior Unsecured Notes, along with our estimated calculations of our compliance with those covenants at the end of the period presented. These ratios are not measures of our liquidity or performance and serve only to demonstrate our ability to incur additional debt, as permitted by the covenants for the Senior Unsecured Notes.

Covenant

Metric

Required

As of Dec. 31, 2022

Limitation on the incurrence of debt

"Total Debt" /
"Total Assets"

≤ 60%

39.6%

Limitation on the incurrence of secured debt

"Secured Debt" /
"Total Assets"

≤ 40%

5.7%

Limitation on the incurrence of debt based on consolidated EBITDA to annual debt service charge

"Consolidated EBITDA" /
"Annual Debt Service Charge"

≥ 1.5x

5.5x

Maintenance of unencumbered asset value

"Unencumbered Assets" / "Total Unsecured Debt"

≥ 150%

243.4%


						Investing for the long runTM \| 19

W. P. Carey Inc.

Real Estate

Fourth Quarter 2022


						Investing for the long runTM \| 20

W. P. Carey Inc.

Real Estate – Fourth Quarter 2022


Investment Activity – Capital Investments and Commitments (a)

Dollars in thousands. Pro rata.


		Primary Transaction Type	Property Type	Expected Completion / Closing Date	Gross Square Footage	Lease Term (Years) (b)	Funded During Three Months Ended Dec. 31, 2022		Total Funded Through Dec. 31, 2022		Maximum Commitment / Gross Investment Amount
Tenant	Location										Remaining		Total
Berry Global Inc. (2 properties)	Various, USA	Renovation	Industrial	Q1 2023	N/A	17	$	—	$	—	$	20,000	$	20,000
COOP Danmark A/S (c) (d)	Klarup, Denmark	Purchase Commitment	Retail	Q2 2023	11,055	15	—		—		3,425		3,425
Outfront Media, LLC (6 properties)	Various, NJ	Build-to-Suit	Outdoor Advertising	Various	N/A	30	2,288		7,272		474		7,746
Chattem, Inc.	Chattanooga, TN	Expansion	Warehouse	Q3 2023	120,000	10	—		—		26,552		26,552
Unchained Labs, LLC	Pleasanton, CA	Redevelopment	Laboratory	Q3 2023	N/A	16	2,471		2,471		11,426		13,897
Hellweg Die Profi-Baumärkte GmbH & Co. KG (2 properties) (c)	Various, Germany	Renovation	Retail	Q3 2023	N/A	14	—		—		2,240		2,240
Hexagon Composites ASA	Salisbury, NC	Expansion	Industrial	Q4 2023	113,000	15	—		—		13,800		13,800
Expected Completion Date 2023 Total					244,055	16	4,759		9,743		77,917		87,660

National Coatings & Supplies, Inc.	Nashville, TN	Expansion	Warehouse	Q1 2024	13,500	17	—		—		2,100		2,100
Fraikin SAS (c)	Various, France	Renovation	Industrial	Q4 2024	N/A	17	—		—		7,360		7,360
Expected Completion Date 2024 Total					13,500	17	—		—		9,460		9,460

Capital Investments and Commitments Total					257,555	16	$	4,759	$	9,743	$	87,377	$	97,120

________

(a)This schedule includes future estimates for which we can give no assurance as to timing or amounts. Completed capital investments and commitments are included in the Investment Activity – Investment Volume section. Funding amounts exclude capitalized construction interest.

(b)Total lease terms are based on weighted-average ABR for the investments expected upon completion.

(c)Commitment amounts are based on the applicable exchange rate at period end.

(d)Property is expected to be acquired upon completion of renovations.


						Investing for the long runTM \| 21

W. P. Carey Inc.

Real Estate – Fourth Quarter 2022


Investment Activity – Investment Volume

Dollars in thousands. Pro rata. For the year ended December 31, 2022.

Property Type(s)

Closing Date / Asset Completion Date

Gross Investment Amount

Investment Type

Lease Term (Years) (a)

Gross Square Footage

Tenant / Lease Guarantor

Property Location(s)

1Q22

Balcan Innovations Inc.

Pleasant Prairie, WI

Industrial

Jan-22

20,024

Sale-leaseback

175,168

Memora Servicios Funerarios S.L (26 properties) (b)

Various, Spain

Funeral Home

Feb-22

146,364

Sale-leaseback

370,204

COOP Danmark A/S (8 properties) (b)

Various, Denmark

Retail

Feb-22

33,976

Sale-leaseback

121,263

Metra S.p.A. (b)

Laval, Canada

Industrial

Feb-22

21,459

Sale-leaseback

162,600

Chattem, Inc. (c)

Chattanooga, TN

Warehouse

Mar-22

43,198

Acquisition

689,450

Orgill, Inc.

Hurricane, UT

Warehouse

Mar-22

20,000

Expansion

427,680

Jumbo Food Groep B.V. (b)

Breda, Netherlands

Warehouse

Mar-22

4,721

Expansion

41,893

1Q22 Total

289,742

1,988,258

2Q22

Henkel AG & Co.

Bowling Green, KY

Warehouse

Apr-22

69,475

Renovation

N/A

Innophos Holdings, Inc. (6 properties)

Various, United States (4 properties), Canada (1 property), and Mexico (1 property)

Industrial

Apr-22; May-22

80,595

Sale-leaseback

1,169,654

Highline Warren LLC (6 properties)

Various, United States

Industrial; Warehouse

May-22

110,381

Sale-leaseback

1,578,198

COOP Danmark A/S (10 properties) (b)

Various, Denmark

Retail

Jun-22

42,635

Sale-leaseback

163,000

CentroMotion

Medina, OH

Industrial

Jun-22

28,913

Sale-leaseback

368,465

Turkey Hill, LLC (2 properties)

Searcy, AR and Conestoga, PA

Industrial

Jun-22

10,000

Renovation

N/A

Van Mossel Automotive (5 properties) (b) (d)

Various, Belgium

Retail

Jun-22

19,795

Sale-leaseback

125,755

Greenyard NV (b)

Bree, Belgium

Warehouse

Jun-22

96,697

Sale-leaseback

1,876,456

2Q22 Total

458,491

5,281,528

3Q22

Upfield Group B.V. (b)

Wageningen, Netherlands

Research and Development

Jul-22

25,390

Build-to-Suit

63,762

Eroski Sociedad Cooperativa (5 properties) (b)

Various, Spain

Retail

Jul-22

19,894

Sale-leaseback

109,179

Hearthside Food Solutions, LLC (18 properties)

Various, United States

Industrial; Warehouse

Jul-22

262,061

Sale-leaseback

3,432,354

COOP Danmark A/S (8 properties) (b)

Various, Denmark

Retail

Aug-22; Sep-22

29,644

Sale-leaseback

149,984

Ontex BVBA (b)

Radomsko, Poland

Industrial

Aug-22

22,914

Expansion

463,816

True Value Company, LLC

Westlake, OH

Warehouse

Aug-22

29,517

Sale-leaseback

392,400

Transcendia Holdings, Inc. (3 properties)

Hebron and Strongsville, OH; and Scarborough, Canada

Industrial; Warehouse

Aug-22

20,111

Sale-leaseback

389,693

Bowl New England, Inc. (2 properties)

Clifton Park, NY and West Des Moines, IA

Specialty

Aug-22

23,317

Sale-leaseback

87,642

CentroMotion (b)

Orzinuovi, Italy

Industrial

Aug-22

14,033

Sale-leaseback

155,355

3Q22 Total

446,881

5,244,185


						Investing for the long runTM \| 22

W. P. Carey Inc.

Real Estate – Fourth Quarter 2022


Investment Activity – Investment Volume (continued)

Dollars in thousands. Pro rata. For the year ended December 31, 2022.

Property Type(s)

Closing Date / Asset Completion Date

Gross Investment Amount

Investment Type

Lease Term (Years) (a)

Gross Square Footage

Tenant / Lease Guarantor

Property Location(s)

4Q22

COOP Danmark A/S (4 properties) (b)

Various, Denmark

Retail

Nov-22

15,553

Sale-leaseback

45,197

Alta Enterprises LLC (19 properties)

Various, United States

Industrial

Dec-22

63,006

Acquisition

678,507

FCA US LLC

Romulus, MI

Warehouse

Dec-22

36,569

Acquisition

500,023

Hexagon Composites ASA (e)

Salisbury, NC

Industrial

Dec-22

16,412

Sale-leaseback

204,142

Outfront Media, LLC (2 properties)

West Chester, PA and Flemington, NJ

Outdoor Advertising

Various

2,695

Acquisition; Build-to-Suit

N/A

4Q22 Total

134,235

1,427,869

Year-to-Date Total

1,329,349

13,941,840


		Property Type(s)	Funded During Current Quarter		Funded Year to Date		Expected Funding Completion Date	Total Funded		Maximum Commitment
Description	Property Location(s)
Construction Loan
Southwest Corner of Las Vegas Boulevard & Harmon Avenue Retail Complex (f)	Las Vegas, NV	Retail	$	24,285	$	89,454	Q4 2023	$	193,168	$	261,887
Total					89,454

Year-to-Date Total Investment Volume					$	1,418,803

________

(a)Total lease terms are based on weighted-average ABR for the investments as of the respective period ends.

(b)Amount reflects the applicable exchange rate on the date of the transaction.

(c)We also committed to fund an additional $26.6 million for an expansion at this facility, which is expected to be completed in the third quarter of 2023.

(d)This investment is accounted for as a loan receivable within Net investments in direct financing leases and loans receivable on our consolidated balance sheets, in accordance with ASC 310, Receivables and ASC 842, Leases.

(e)We also committed to fund an additional $13.8 million for an expansion at this facility, which is expected to be completed in the fourth quarter of 2023.

(f)This construction loan is accounted for as an equity method investment on our consolidated balance sheets, in accordance with U.S. GAAP. The interest rate is 6.0% and interest income is recognized within Earnings from equity method investments on our consolidated statements of income.


						Investing for the long runTM \| 23

W. P. Carey Inc.

Real Estate – Fourth Quarter 2022


Investment Activity – Dispositions

Dollars in thousands. Pro rata. For the year ended December 31, 2022.

Tenant / Lease Guarantor

Property Location(s)

Gross Sale Price

Closing Date

Property Type(s)

Gross Square Footage

1Q22

Vacant

Flora, MS

5,500

Jan-22

Warehouse

102,498

Barnes & Noble, Inc.

Braintree, MA

13,800

Feb-22

Retail

19,661

Pendragon PLC (3 properties) (a)

Ardrossan, Blackpool and Stourbridge, United Kingdom

3,234

Mar-22

Retail

36,199

Vacant

Anchorage, AK

4,075

Mar-22

Warehouse

40,512

1Q22 Total

26,609

198,870

2Q22

Pendragon PLC (2 properties) (a)

Livingston and Stoke-on-Trent, United Kingdom

3,275

Apr-22

Retail

29,678

Barrett Steel Limited (a)

Newbridge, United Kingdom

17,444

Apr-22

Warehouse

213,394

Plastic Technology Holdings, LLC

Baraboo, WI

18,650

Apr-22

Industrial

615,048

Vacant

Waterford Township, MI

3,690

Apr-22

Retail

103,018

Vacant (a)

Kotka, Finland

1,689

May-22

Warehouse

150,884

TNT Crust Parent, LLC (2 properties)

St. Charles, MO and Green Bay, WI

48,000

Jun-22

Industrial

176,993

2Q22 Total

92,748

1,289,015

3Q22

Vacant

Pittsburgh, PA

5,600

Aug-22

Industrial

146,103

Royal Vopak NV (a)

Rotterdam, Netherlands

44,855

Aug-22

Office

153,400

Vacant

Clinton, NJ

6,288

Sep-22

Office

292,000

3Q22 Total

56,743

591,503

4Q22

Vacant

Bedford, TX

3,424

Oct-22

Fitness Facility

46,658

Pendragon PLC (2 properties) (a)

Stockton-on-Tees and Kirkcaldy, United Kingdom

4,462

Oct-22; Dec-22

Retail

38,981

Vacant (a)

Mauves-sur-Loire, France

374

Nov-22

Industrial

5,792

Apply Sorco AS (a)

Stavanger, Norway

55,572

Dec-22

Office

199,504

Vacant

Lenexa, KS

3,800

Dec-22

Industrial

130,094

4Q22 Total

67,632

421,029

Year-to-Date Total Dispositions

243,732

2,500,417

________

(a)Amount reflects the applicable exchange rate on the date of the transaction.


						Investing for the long runTM \| 24

W. P. Carey Inc.

Real Estate – Fourth Quarter 2022


Joint Ventures

Dollars in thousands. As of December 31, 2022.


Joint Venture or JV (Principal Tenant)	JV Partnership		Consolidated				Pro Rata (a)
	Asset Type	WPC %	Debt Outstanding (b)		ABR		Debt Outstanding (c)		ABR
Unconsolidated Joint Venture (Equity Method Investment) (d)
Harmon Retail Corner	Common equity interest	15.00%	$	143,000	$	—	$	21,450	$	—
Kesko Senukai (e)	Net lease	70.00%	105,839		13,995		74,088		9,797
Johnson Self Storage	Self-storage operating	90.00%	—		N/A		—		N/A
Total Unconsolidated Joint Ventures Post-Merger			248,839		13,995		95,538		9,797

Consolidated Joint Ventures
Fentonir Trading & Investments Limited (e)	Net lease	94.90%	58,669		8,193		55,677		7,775
COOP Ost SA (e)	Net lease	90.10%	55,289		6,650		49,815		5,991
Swansea, United Kingdom Student Housing (e)	Student housing operating	97.00%	42,976		N/A		41,687		N/A
Austin, TX Student Housing	Student housing operating	90.00%	28,533		N/A		25,680		N/A
State of Iowa Board of Regents	Net lease	90.00%	6,205		4,258		5,585		3,833
McCoy-Rockford, Inc.	Net lease	90.00%	—		932		—		839
Total Consolidated Joint Ventures			191,672		20,033		178,444		18,438
Total Unconsolidated and Consolidated Joint Ventures			$	440,511	$	34,028	$	273,982	$	28,235

________

(a)See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata.

(b)Excludes unamortized discount, net totaling $1.2 million and unamortized deferred financing costs totaling $0.5 million as of December 31, 2022.

(c)Excludes unamortized discount, net totaling $1.0 million and unamortized deferred financing costs totaling less than $0.1 million as of December 31, 2022.

(d)Excludes a construction loan for a retail complex in Las Vegas, Nevada, accounted for as an equity method investment in real estate, as described in the Components of Net Asset Value section.

(e)Amounts are based on the applicable exchange rate at the end of the period.


						Investing for the long runTM \| 25

W. P. Carey Inc.

Real Estate – Fourth Quarter 2022


Top Ten Tenants

Dollars in thousands. Pro rata. As of December 31, 2022.


Tenant / Lease Guarantor	Description	Number of Properties	ABR		ABR %		Weighted-Average Lease Term (Years)
U-Haul Moving Partners Inc. and Mercury Partners, LP	Net lease self-storage properties in the U.S.	78	$	38,751	2.8	%	1.3
State of Andalucía (a)	Government office properties in Spain	70	29,271		2.1	%	12.0
Metro Cash & Carry Italia S.p.A. (a)	Business-to-business wholesale stores in Italy and Germany	20	27,512		2.0	%	5.8
Hellweg Die Profi-Baumärkte GmbH & Co. KG (a)	Do-it-yourself retail properties in Germany	35	27,250		2.0	%	14.2
Extra Space Storage, Inc.	Net lease self-storage properties in the U.S.	27	22,957		1.7	%	21.3
OBI Group (a)	Do-it-yourself retail properties in Poland	26	22,266		1.6	%	7.8
Marriott Corporation (b)	Net lease hotel properties in the U.S.	18	21,350		1.6	%	1.0
Nord Anglia Education, Inc.	K-12 private schools in the U.S.	3	20,981		1.5	%	20.7
Advance Auto Parts, Inc.	Distribution facilities in the U.S.	29	19,851		1.4	%	10.1
Eroski Sociedad Cooperativa (a)	Grocery stores and warehouses in Spain	63	19,705		1.4	%	13.2
Total (c)		369	$	249,894	18.1	%	10.1

________

(a)ABR amounts are subject to fluctuations in foreign currency exchange rates.

(b)ABR for this tenant includes $16.1 million from a lease that expired in January 2023. Upon lease expiration, these properties were converted from net lease properties to operating properties.

(c)See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata.


						Investing for the long runTM \| 26

W. P. Carey Inc.

Real Estate – Fourth Quarter 2022


Diversification by Property Type

In thousands, except percentages. Pro rata. As of December 31, 2022.


	Total Net-Lease Portfolio
Property Type	ABR		ABR %		Square Footage (a)	Square Footage %
U.S.
Industrial	$	293,225	21.2	%	51,486	29.3	%
Warehouse	211,138		15.3	%	42,817	24.3	%
Office	150,309		10.9	%	10,149	5.8	%
Retail (b)	46,887		3.4	%	2,800	1.6	%
Self Storage (net lease)	61,708		4.5	%	5,810	3.3	%
Other (c)	112,226		8.1	%	5,697	3.2	%
U.S. Total	875,493		63.4	%	118,759	67.5	%

International
Industrial	73,552		5.3	%	11,035	6.3	%
Warehouse	122,575		8.8	%	20,375	11.6	%
Office	89,632		6.5	%	6,554	3.7	%
Retail (b)	184,952		13.4	%	17,490	9.9	%
Self Storage (net lease)	—		—	%	—	—	%
Other (c)	35,695		2.6	%	1,744	1.0	%
International Total	506,406		36.6	%	57,198	32.5	%

Total
Industrial	366,777		26.5	%	62,521	35.6	%
Warehouse	333,713		24.1	%	63,192	35.9	%
Office	239,941		17.4	%	16,703	9.5	%
Retail (b)	231,839		16.8	%	20,290	11.5	%
Self Storage (net lease)	61,708		4.5	%	5,810	3.3	%
Other (c)	147,921		10.7	%	7,441	4.2	%
Total (d)	$	1,381,899	100.0	%	175,957	100.0	%

________

(a)Includes square footage for vacant properties.

(b)Includes automotive dealerships.

(c)Includes ABR from tenants with the following property types: hotel (net lease), education facility, laboratory, specialty, fitness facility, research and development, student housing (net lease), theater, funeral home, restaurant, land and parking.

(d)See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata.


						Investing for the long runTM \| 27

W. P. Carey Inc.

Real Estate – Fourth Quarter 2022


Diversification by Tenant Industry

In thousands, except percentages. Pro rata. As of December 31, 2022.


	Total Net-Lease Portfolio
Industry Type	ABR		ABR %		Square Footage	Square Footage %
Retail Stores (a)	$	283,868	20.5	%	36,457	20.7	%
Consumer Services	110,969		8.0	%	8,067	4.6	%
Beverage and Food	105,906		7.7	%	15,759	9.0	%
Automotive	85,966		6.2	%	13,477	7.7	%
Grocery	79,516		5.8	%	8,363	4.8	%
Cargo Transportation	63,473		4.6	%	9,550	5.4	%
Hotel and Leisure	57,132		4.1	%	3,060	1.7	%
Healthcare and Pharmaceuticals	55,806		4.0	%	5,557	3.2	%
Capital Equipment	55,593		4.0	%	8,459	4.8	%
Business Services	48,375		3.5	%	4,113	2.3	%
Containers, Packaging, and Glass	46,942		3.4	%	8,266	4.7	%
Durable Consumer Goods	46,761		3.4	%	10,300	5.9	%
Construction and Building	46,583		3.4	%	9,235	5.2	%
Sovereign and Public Finance	42,578		3.1	%	3,560	2.0	%
High Tech Industries	36,027		2.6	%	3,574	2.0	%
Insurance	30,862		2.2	%	2,024	1.1	%
Chemicals, Plastics, and Rubber	29,935		2.2	%	5,254	3.0	%
Non-Durable Consumer Goods	26,374		1.9	%	6,244	3.5	%
Banking	23,894		1.7	%	1,426	0.8	%
Metals	18,673		1.4	%	3,259	1.9	%
Telecommunications	16,839		1.2	%	1,686	1.0	%
Other (b)	69,827		5.1	%	8,267	4.7	%
Total (c)	$	1,381,899	100.0	%	175,957	100.0	%

________

(a)Includes automotive dealerships.

(b)Includes ABR from tenants in the following industries: media: broadcasting and subscription, aerospace and defense, wholesale, media: advertising, printing, and publishing, oil and gas, utilities: electric, environmental industries, consumer transportation, forest products and paper, electricity and real estate. Also includes square footage for vacant properties.

(c)See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata.


						Investing for the long runTM \| 28

W. P. Carey Inc.

Real Estate – Fourth Quarter 2022


Diversification by Geography

In thousands, except percentages. Pro rata. As of December 31, 2022.


	Total Net-Lease Portfolio
Region	ABR		ABR %		Square Footage (a)	Square Footage %
U.S.
South
Texas	$	115,176	8.3	%	12,609	7.2	%
Florida	54,064		3.9	%	4,544	2.6	%
Georgia	28,411		2.1	%	4,721	2.7	%
Tennessee	25,545		1.8	%	4,136	2.3	%
Alabama	20,072		1.5	%	3,334	1.9	%
Other (b)	14,529		1.1	%	2,237	1.3	%
Total South	257,797		18.7	%	31,581	18.0	%
Midwest
Illinois	75,252		5.5	%	10,864	6.2	%
Minnesota	34,977		2.5	%	3,686	2.1	%
Indiana	29,312		2.1	%	5,222	3.0	%
Michigan	28,311		2.1	%	4,705	2.7	%
Ohio	28,303		2.0	%	6,181	3.5	%
Wisconsin	18,126		1.3	%	3,276	1.8	%
Other (b)	42,430		3.1	%	6,230	3.5	%
Total Midwest	256,711		18.6	%	40,164	22.8	%
East
North Carolina	38,333		2.8	%	8,302	4.7	%
Pennsylvania	32,169		2.3	%	3,527	2.0	%
New York	19,373		1.4	%	2,257	1.3	%
Kentucky	18,638		1.4	%	3,063	1.7	%
South Carolina	18,556		1.3	%	4,949	2.8	%
Massachusetts	18,209		1.3	%	1,387	0.8	%
New Jersey	15,735		1.1	%	943	0.5	%
Virginia	14,652		1.1	%	1,854	1.1	%
Other (b)	25,029		1.8	%	3,884	2.2	%
Total East	200,694		14.5	%	30,166	17.1	%
West
California	64,977		4.7	%	6,417	3.6	%
Arizona	30,417		2.2	%	3,437	2.0	%
Other (b)	64,897		4.7	%	6,994	4.0	%
Total West	160,291		11.6	%	16,848	9.6	%
U.S. Total	875,493		63.4	%	118,759	67.5	%
International
Germany	71,304		5.2	%	7,020	4.0	%
Spain	63,779		4.6	%	5,187	3.0	%
Poland	63,552		4.6	%	8,631	4.9	%
The Netherlands	55,666		4.0	%	7,054	4.0	%
United Kingdom	51,977		3.8	%	4,766	2.7	%
Italy	26,884		1.9	%	2,541	1.4	%
Denmark	23,526		1.7	%	3,039	1.7	%
France	19,920		1.4	%	1,679	1.0	%
Croatia	19,475		1.4	%	2,063	1.2	%
Canada	16,337		1.2	%	2,492	1.4	%
Norway	15,533		1.1	%	753	0.4	%
Other (c)	78,453		5.7	%	11,973	6.8	%
International Total	506,406		36.6	%	57,198	32.5	%
Total (d)	$	1,381,899	100.0	%	175,957	100.0	%

________

(a)Includes square footage for vacant properties.

(b)Other properties within South include assets in Louisiana, Arkansas, Oklahoma and Mississippi. Other properties within Midwest include assets in Iowa, Missouri, Kansas, Nebraska, South Dakota and North Dakota. Other properties within East include assets in Maryland, Connecticut, West Virginia, New Hampshire and Maine. Other properties within West include assets in Utah, Oregon, Colorado, Washington, Nevada, Hawaii, Idaho, New Mexico, Wyoming and Montana.

(c)Includes assets in Lithuania, Mexico, Finland, Belgium, Hungary, Mauritius, Slovakia, Portugal, the Czech Republic, Austria, Sweden, Japan, Latvia and Estonia.

(d)See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata.


						Investing for the long runTM \| 29

W. P. Carey Inc.

Real Estate – Fourth Quarter 2022


Contractual Rent Increases

In thousands, except percentages. Pro rata. As of December 31, 2022.


	Total Net-Lease Portfolio
Rent Adjustment Measure	ABR		ABR %		Square Footage	Square Footage %
Uncapped CPI	$	511,987	37.1	%	55,043	31.3	%
Capped CPI	254,488		18.4	%	36,118	20.5	%
CPI-linked	766,475		55.5	%	91,161	51.8	%
Fixed	552,719		40.0	%	78,705	44.7	%
Other (a)	49,044		3.5	%	3,373	1.9	%
None	13,661		1.0	%	637	0.4	%
Vacant	—		—	%	2,081	1.2	%
Total (b)	$	1,381,899	100.0	%	175,957	100.0	%

________

(a)Represents leases attributable to percentage rent.

(b)See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata.


						Investing for the long runTM \| 30

W. P. Carey Inc.

Real Estate – Fourth Quarter 2022


Same Store Analysis

Dollars in thousands. Pro rata.

Contractual Same Store Growth

Same store portfolio includes leases that were continuously in place during the period from December 31, 2021 to December 31, 2022. Excludes leases for properties that were acquired, sold or vacated, or were subject to lease renewals, extensions or modifications at any time that affected ABR during that period. Excludes leases for properties acquired in the CPA:18 Merger on August 1, 2022. For purposes of comparability, ABR is presented on a constant currency basis using exchange rates as of December 31, 2022.


	ABR
	As of
	Dec. 31, 2022		Dec. 31, 2021		Increase		% Increase
Property Type
Industrial	$	301,217	$	289,960	$	11,257	3.9	%
Warehouse	277,483		269,266		8,217		3.1	%
Office	196,898		192,527		4,371		2.3	%
Retail (a)	214,202		206,026		8,176		4.0	%
Self Storage (net lease)	61,708		59,438		2,270		3.8	%
Other (b)	107,383		103,495		3,888		3.8	%
Total	$	1,158,891	$	1,120,712	$	38,179	3.4	%

Rent Adjustment Measure
Uncapped CPI	$	454,124	$	432,560	$	21,564	5.0	%
Capped CPI	225,503		218,400		7,103		3.3	%
CPI-linked	679,627		650,960		28,667		4.4	%
Fixed	416,874		409,631		7,243		1.8	%
Other (c)	49,044		46,775		2,269		4.9	%
None	13,346		13,346		—		—	%
Total	$	1,158,891	$	1,120,712	$	38,179	3.4	%

Geography
U.S.	$	730,483	$	708,629	$	21,854	3.1	%
Europe	405,600		390,109		15,491		4.0	%
Other International (d)	22,808		21,974		834		3.8	%
Total	$	1,158,891	$	1,120,712	$	38,179	3.4	%

Same Store Portfolio Summary
Number of properties	1,224
Square footage (in thousands)	141,885


						Investing for the long runTM \| 31

W. P. Carey Inc.

Real Estate – Fourth Quarter 2022

Comprehensive Same Store Growth

Same store portfolio includes leased properties that were continuously owned and in place during the quarter ended December 31, 2021 through December 31, 2022 (including properties that were subject to lease renewals, extensions or modifications at any time during that period). Excludes properties that were acquired, sold or listed as capital investments and commitments (see Investment Activity – Capital Investments and Commitments section) during that period. Excludes properties acquired in the CPA:18 Merger on August 1, 2022. For purposes of comparability, same store pro rata rental income is presented on a constant currency basis using average exchange rates for the three months ended December 31, 2022. Same store pro rata rental income is a non-GAAP measure. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of same store pro rata rental income and for details on how it is calculated.


	Same Store Pro Rata Rental Income
	Three Months Ended
	Dec. 31, 2022		Dec. 31, 2021		Increase		% Increase
Property Type
Industrial	$	71,959	$	70,999	$	960	1.4	%
Warehouse	68,762		66,775		1,987		3.0	%
Office	51,326		52,605		(1,279)		(2.4)	%
Retail (a)	48,903		47,825		1,078		2.3	%
Self Storage (net lease)	15,401		14,834		567		3.8	%
Other (b)	30,204		30,697		(493)		(1.6)	%
Total	$	286,555	$	283,735	$	2,820	1.0	%

Rent Adjustment Measure
Uncapped CPI	$	110,087	$	109,795	$	292	0.3	%
Capped CPI	54,357		54,710		(353)		(0.6)	%
CPI-linked	164,444		164,505		(61)		—	%
Fixed	106,604		104,673		1,931		1.8	%
Other (c)	12,011		11,432		579		5.1	%
None	3,496		3,125		371		11.9	%
Total	$	286,555	$	283,735	$	2,820	1.0	%

Geography
U.S.	$	187,128	$	186,783	$	345	0.2	%
Europe	93,280		90,995		2,285		2.5	%
Other International (d)	6,147		5,957		190		3.2	%
Total	$	286,555	$	283,735	$	2,820	1.0	%

Same Store Portfolio Summary
Number of properties	1,218
Square footage (in thousands)	144,915


						Investing for the long runTM \| 32

W. P. Carey Inc.

Real Estate – Fourth Quarter 2022

The following table presents a reconciliation from lease revenues to same store pro rata rental income:


	Three Months Ended
	Dec. 31, 2022		Dec. 31, 2021
Consolidated Lease Revenues
Total lease revenues – as reported	$	347,636	$	305,093
Income from direct financing leases and loans receivable	17,472		15,637
Less: Reimbursable tenant costs – as reported	(21,084)		(16,475)
Less: Income from secured loans receivable	(1,191)		(1,163)
	342,833		303,092

Adjustments for Pro Rata Ownership of Real Estate Joint Ventures:
Add: Pro rata share of adjustments from equity method investments	5,448		5,322
Less: Pro rata share of adjustments for noncontrolling interests	(395)		(22)
	5,053		5,300

Adjustments for Pro Rata Non-Cash Items:
Less: Straight-line and other leasing and financing adjustments	(14,766)		(15,605)
Add: Above- and below-market rent intangible lease amortization	8,652		15,082
Less: Adjustments for pro rata ownership	(2,464)		30
	(8,578)		(493)

Adjustment to normalize for (i) properties not continuously owned since October 1, 2021 and (ii) constant currency presentation for prior year quarter (e)	(52,753)		(24,164)

Same Store Pro Rata Rental Income	$	286,555	$	283,735

________

(a)Includes automotive dealerships.

(b)Includes ABR or same store pro rata rental income from tenants with the following property types: education facility, hotel (net lease), laboratory, specialty, fitness facility, research and development, student housing (net lease), theater, funeral home, restaurant, land and parking.

(c)Represents leases attributable to percentage rent.

(d)Includes assets in Canada, Mexico and Japan.

(e)This adjustment excludes amounts attributable to properties that were acquired, sold or listed as capital investments and commitments (see Investment Activity – Capital Investments and Commitments section) that were not continuously owned and in place during the quarter ended December 31, 2021 through December 31, 2022. In addition, for the three months ended December 31, 2021, an adjustment is made to reflect average exchange rates for the three months ended December 31, 2022 for purposes of comparability, since same store pro rata rental income is presented on a constant currency basis.


						Investing for the long runTM \| 33

W. P. Carey Inc.

Real Estate – Fourth Quarter 2022


Leasing Activity

For the three months ended December 31, 2022, except ABR. Pro rata.


Lease Renewals and Extensions (a)										Expected Tenant Improvements ($000s)		Leasing Commissions ($000s)
			ABR
Property Type	Square Feet	Number of Leases	Prior Lease ($000s)			New Lease ($000s) (b)		Rent Recapture						Incremental Lease Term
Industrial	1,890,034	4	$	7,435		$	9,069	122.0	%	$	5,871	$	2,200	11.4 years
Warehouse	895,264	2	3,691			4,176		113.1	%	206		200		3.0 years
Office	199,140	2	3,168			2,633		83.1	%	3,149		977		7.9 years
Retail	113,570	1	1,000			1,000		100.0	%	—		—		5.0 years
Self Storage (net lease)	—	—	—			—		—	%	—		—		N/A
Other	—	—	—			—		—	%	—		—		N/A
Total / Weighted Average (c)	3,098,008	9	$	15,294		$	16,878	110.4	%	$	9,226	$	3,377	8.3 years

Q4 Summary
Prior Lease ABR (% of Total Portfolio)			1.1		%

_______

(a)Excludes lease extensions for a period of one year or less.

(b)New lease amounts are based on in-place rents at time of lease commencement and exclude any free rent periods.

(c)Weighted average refers to the incremental lease term.


						Investing for the long runTM \| 34

W. P. Carey Inc.

Real Estate – Fourth Quarter 2022


Lease Expirations

Dollars and square footage in thousands. Pro rata. As of December 31, 2022.


Year of Lease Expiration (a)	Number of Leases Expiring	Number of Tenants with Leases Expiring	ABR		ABR %		Square Footage	Square Footage %
2023 (b)	36	30	$	54,228	3.9	%	5,500	3.1	%
2024 (c)	41	35	90,330		6.6	%	11,230	6.4	%
2025	53	32	61,241		4.4	%	7,068	4.0	%
2026	46	36	64,074		4.7	%	9,081	5.1	%
2027	57	33	82,953		6.0	%	8,906	5.1	%
2028	46	28	69,298		5.0	%	5,589	3.2	%
2029	57	29	68,802		5.0	%	8,337	4.7	%
2030	34	29	73,128		5.3	%	6,165	3.5	%
2031	37	21	70,249		5.1	%	8,749	5.0	%
2032	41	22	44,204		3.2	%	6,200	3.5	%
2033	31	24	81,864		5.9	%	11,377	6.5	%
2034	49	18	83,347		6.0	%	8,638	4.9	%
2035	14	14	29,388		2.1	%	4,957	2.8	%
2036	49	19	84,795		6.1	%	13,524	7.7	%
Thereafter (>2036)	261	107	423,998		30.7	%	58,555	33.3	%
Vacant	—	—	—		—	%	2,081	1.2	%
Total (d)	852		$	1,381,899	100.0	%	175,957	100.0	%

________

(a)Assumes tenants do not exercise any renewal options or purchase options.

(b)Includes ABR of $16.1 million from a tenant (Marriott Corporation) with a lease that expired in January 2023. Upon lease expiration, these properties were converted from net lease properties to operating properties.

(c)Includes ABR of $38.8 million from a tenant (U-Haul Moving Partners, Inc. and Mercury Partners, LP) that holds an option to repurchase the 78 properties it is leasing in April 2024. There can be no assurance that such repurchase will be completed.

(d)See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata.


						Investing for the long runTM \| 35

W. P. Carey Inc.

Real Estate – Fourth Quarter 2022


Self Storage Operating Properties Portfolio

Square footage in thousands. Pro rata. As of December 31, 2022.


State / District	Number of Properties	Number of Units	Square Footage	Square Footage %		Period End Occupancy
Florida	22	15,951	1,851	29.7	%	92.1	%
Texas	12	6,884	843	13.5	%	87.3	%
California	10	6,582	859	13.8	%	92.9	%
Illinois	10	4,797	665	10.7	%	88.6	%
South Carolina	6	3,708	412	6.6	%	93.5	%
Georgia	5	2,051	250	4.0	%	89.5	%
North Carolina	4	2,833	322	5.2	%	94.5	%
Nevada	3	2,422	243	3.9	%	92.4	%
Delaware	3	1,678	241	3.9	%	94.7	%
Hawaii	2	956	95	1.5	%	94.2	%
Washington, DC	1	880	67	1.1	%	95.5	%
New York	1	792	61	1.0	%	81.3	%
Kentucky	1	764	121	1.9	%	92.3	%
Louisiana	1	541	59	1.0	%	76.0	%
Massachusetts	1	482	58	0.9	%	94.7	%
Oregon	1	442	40	0.6	%	96.3	%
Missouri	1	330	41	0.7	%	43.7	%
Total (a)	84	52,093	6,228	100.0	%	91.0	%

________

(a)See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata.


						Investing for the long runTM \| 36

W. P. Carey Inc.

Appendix

Fourth Quarter 2022


						Investing for the long runTM \| 37

W. P. Carey Inc.

Appendix – Fourth Quarter 2022


Normalized Pro Rata Cash NOI

In thousands. From real estate.


	Three Months Ended Dec. 31, 2022
Consolidated Lease Revenues
Total lease revenues – as reported	$	347,636
Income from direct financing leases and loans receivable	17,472
Less: Income from secured loans receivable	(1,191)

Less: Consolidated Reimbursable and Non-Reimbursable Property Expenses
Reimbursable property expenses – as reported	21,084
Non-reimbursable property expenses – as reported	13,879
	328,954

Plus: NOI from Operating Properties
Self-storage revenues	23,280
Self-storage expenses	(7,497)
	15,783

Hotel revenues	2,943
Hotel expenses	(2,547)
	396

Student housing and other revenues	2,728
Student housing and other expenses	(1,675)
	1,053

	346,186

Adjustments for Pro Rata Ownership of Real Estate Joint Ventures:
Add: Pro rata share of NOI from equity method investments (a)	5,046
Less: Pro rata share of NOI attributable to noncontrolling interests	(488)
	4,558

	350,744

Adjustments for Pro Rata Non-Cash Items:
Less: Straight-line and other leasing and financing adjustments	(14,766)
Add: Above- and below-market rent intangible lease amortization	8,652
Add: Other non-cash items	420
	(5,694)

Pro Rata Cash NOI (b)	345,050

Adjustment to normalize for intra-period acquisition volume and dispositions (c)	1,120

Normalized Pro Rata Cash NOI (b)	$	346,170


						Investing for the long runTM \| 38

W. P. Carey Inc.

Appendix – Fourth Quarter 2022

The following table presents a reconciliation from Net income from Real Estate attributable to W. P. Carey to Normalized pro rata cash NOI:


	Three Months Ended Dec. 31, 2022
Net Income from Real Estate Attributable to W. P. Carey
Net income from Real Estate attributable to W. P. Carey – as reported	$	210,142
Adjustments for Consolidated Operating Expenses
Add: Operating expenses – as reported	234,690
Less: Property expenses, excluding reimbursable tenant costs – as reported	(13,879)
Less: Operating property expenses – as reported	(11,719)
	209,092

Adjustments for Other Consolidated Revenues and Expenses:
Less: Other lease-related income – as reported	(8,083)
Less: Reimbursable property expenses – as reported	(21,084)
Add: Other income and (expenses)	(47,563)
Add: Provision for income taxes	4,908
	(71,822)

Other Adjustments:
Less: Straight-line and other leasing and financing adjustments	(14,766)
Add: Above- and below-market rent intangible lease amortization	8,652
Add: Adjustments for pro rata ownership	4,546
Less: Income from secured loans receivable	(1,191)
Adjustment to normalize for intra-period acquisition volume and dispositions (c)	1,120
Add: Property expenses, excluding reimbursable tenant costs, non-cash	397
	(1,242)

Normalized Pro Rata Cash NOI (b)	$	346,170

________

(a)Includes $1.6 million from equity method investments in self-storage operating properties.

(b)Pro rata cash NOI and normalized pro rata cash NOI are non-GAAP measures. See the Disclosures Regarding Non-GAAP and Other Metrics section that follows for a description of our non-GAAP measures and for details on how pro rata cash NOI and normalized pro rata cash NOI are calculated.

(c)For properties acquired and capital investments and commitments completed during the three months ended December 31, 2022, the adjustment modifies our pro rata share of cash NOI for the partial period with an amount estimated to be equivalent to the additional pro rata share of cash NOI necessary to reflect ownership for the full quarter. For properties disposed of during the three months ended December 31, 2022, the adjustment eliminates our pro rata share of cash NOI for the period.


						Investing for the long runTM \| 39

W. P. Carey Inc.

Appendix – Fourth Quarter 2022


Adjusted EBITDA, Consolidated – Last Five Quarters

In thousands.


	Three Months Ended
	Dec. 31, 2022		Sep. 30, 2022		Jun. 30, 2022		Mar. 31, 2022		Dec. 31, 2021
Net income	$	209,503	$	104,268	$	127,718	$	156,993	$	99,612

Adjustments to Derive Adjusted EBITDA (a)
Depreciation and amortization	140,749		132,181		115,080		115,393		135,662
Other (gains) and losses (b)	(97,059)		15,020		21,746		(35,745)		28,461
Interest expense	67,668		59,022		46,417		46,053		47,208
Straight-line and other leasing and financing adjustments (c) (d)	(14,766)		(14,326)		(14,492)		(10,847)		(53,380)
Impairment charges — real estate	12,734		—		6,206		20,179		7,945
Stock-based compensation expense	9,739		5,511		9,758		7,833		6,091
Provision for income taxes	6,126		8,263		6,252		7,083		5,052
Above- and below-market rent intangible lease amortization	8,652		11,186		10,548		11,004		15,082
(Gain) loss on sale of real estate, net	(5,845)		4,736		(31,119)		(11,248)		(9,511)
Merger and other expenses (e)	2,058		17,667		1,984		(2,322)		(563)
Other amortization and non-cash charges	399		349		353		379		385
Gain on change in control of interests (f)	—		(33,931)		—		—		—
Impairment charges — Investment Management goodwill (g)	—		29,334		—		—		—
	130,455		235,012		172,733		147,762		182,432

Adjustments for Pro Rata Ownership
Real Estate Joint Ventures:
Add: Pro rata share of adjustments for equity method investments (h)	2,076		2,124		4,329		9,426		16,136
Less: Pro rata share of adjustments for amounts attributable to noncontrolling interests	(511)		(308)		(23)		(23)		(23)
	1,565		1,816		4,306		9,403		16,113
Equity Method Investment in WLT: (i)
Add: Loss from equity method investment in WLT	—		—		—		—		926
Add: Distributions received from equity method investment in WLT	—		—		—		—		—
	—		—		—		—		926
Equity Method Investments in the Managed Programs: (j)
Less: Income from equity method investments in the Managed Programs	—		(1,512)		(59)		(2,972)		(50)
Add: Distributions received from equity method investments in the Managed Programs	—		535		535		520		2,142
	—		(977)		476		(2,452)		2,092
Add: Intra-period normalization of CPA:18 Merger (closed August 1, 2022) (k)	—		7,456		—		—		—
Adjusted EBITDA (l)	$	341,523	$	347,575	$	305,233	$	311,706	$	301,175

________

(a)Comprised of items that we do not consider to be part of our core operating business plan or representative of our overall long-term operating performance, based on a number of factors, including the nature of the item and/or the frequency with which it occurs. We believe that these adjustments provide a more representative view of EBITDA from our core operating business and allow for more meaningful comparisons.

(b)Primarily comprised of gains and losses on extinguishment of debt, the mark-to-market fair value of equity securities, and foreign currency exchange rate movements, as well as non-cash allowance for credit losses on loans receivable and direct financing leases. Amounts from period to period will not be comparable due to unpredictable fluctuations in these gains and losses.

(c)Straight-line rent adjustments relate to our net-leased properties subject to operating leases.

(d)Amount for the three months ended December 31, 2021 includes an adjustment to exclude $37.8 million of lease termination fees received from a tenant, as such amount was determined to be non-core income.

(e)Amounts are primarily comprised of costs incurred in connection with the CPA:18 Merger and/or reversals of estimated liabilities for German real estate transfer taxes that were previously recorded in connection with mergers in prior years.

(f)Amount for the three months ended September 30, 2022 represents gains recognized on (i) the remaining interests in four investments acquired in the CPA:18 Merger, which we had previously accounted for under the equity method, and (ii) our previously held interest in shares of CPA:18 �� Global common stock in connection with the CPA:18 Merger.

(g)Amount for the three months ended September 30, 2022 represents an impairment charge recognized on goodwill within our Investment Management segment, since future Investment Management cash flows are expected to be minimal.


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W. P. Carey Inc.

Appendix – Fourth Quarter 2022

(h)Amounts for the three months ended March 31, 2022 and December 31, 2021 include non-cash impairment charges of $4.6 million and $13.2 million, respectively, recognized on certain equity method investments in real estate.

(i)We recorded income and distributions from our equity method investment in WLT on a one quarter lag. In January 2022, we reclassified our equity investment in WLT to equity securities at fair value within Other assets, net on our consolidated balance sheets.

(j)Adjustments to include cash distributions received from the Managed Programs in place of our pro rata share of net income from our ownership in the Managed Programs. Distributions for the three months ended December 31, 2021 included a special distribution from CPA:18 – Global totaling $1.6 million.

(k)The adjustment modifies Adjusted EBITDA for the pro rata share of cash NOI for the partial period with an amount estimated to be equivalent to the additional pro rata share of cash NOI necessary to reflect ownership for the full quarter. The adjustment is reduced for advisory fees received from CPA:18 – Global during the three months ended September 30, 2022.

(l)Adjusted EBITDA is a non-GAAP measure. See the Disclosures Regarding Non-GAAP and Other Metrics section that follows for a description of our non-GAAP measures.


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W. P. Carey Inc.

Appendix – Fourth Quarter 2022


Adjusted EBITDA, Real Estate – Last Five Quarters

In thousands.


	Three Months Ended
	Dec. 31, 2022		Sep. 30, 2022		Jun. 30, 2022		Mar. 31, 2022		Dec. 31, 2021
Net income from Real Estate	$	210,107	$	110,715	$	123,268	$	146,856	$	94,684

Adjustments to Derive Adjusted EBITDA (a)
Depreciation and amortization	140,749		132,181		115,080		115,393		135,662
Other (gains) and losses (b)	(96,846)		13,960		20,155		(34,418)		27,131
Interest expense	67,668		59,022		46,417		46,053		47,208
Straight-line and other leasing and financing adjustments (c) (d)	(14,766)		(14,326)		(14,492)		(10,847)		(53,380)
Impairment charges — real estate	12,734		—		6,206		20,179		7,945
Stock-based compensation expense	9,739		5,511		9,758		7,833		6,091
Above- and below-market rent intangible lease amortization	8,652		11,186		10,548		11,004		15,082
Provision for income taxes	4,908		3,631		5,955		6,913		5,331
(Gain) loss on sale of real estate, net	(5,845)		4,736		(31,119)		(11,248)		(9,511)
Merger and other expenses (e)	2,058		17,667		1,984		(2,325)		(599)
Other amortization and non-cash charges	399		349		353		379		385
Gain on change in control of interests (f)	—		(11,405)		—		—		—
	129,450		222,512		170,845		148,916		181,345

Adjustments for Pro Rata Ownership
Real Estate Joint Ventures:
Add: Pro rata share of adjustments for equity method investments (g)	2,076		2,124		4,329		9,426		16,136
Less: Pro rata share of adjustments for amounts attributable to noncontrolling interests	(511)		(308)		(23)		(23)		(23)
	1,565		1,816		4,306		9,403		16,113
Equity Method Investment in WLT: (h)
Add: Loss from equity method investment in WLT	—		—		—		—		926
Add: Distributions received from equity method investment in WLT	—		—		—		—		—
	—		—		—		—		926
Add: Intra-period normalization of CPA:18 Merger (closed August 1, 2022) (i)	—		11,892		—		—		—
Adjusted EBITDA – Real Estate (j)	$	341,122	$	346,935	$	298,419	$	305,175	$	293,068

________

(c)Straight-line rent adjustments relate to our net-leased properties subject to operating leases.

(f)Amount for the three months ended September 30, 2022 represents a gain recognized on the remaining interests in four investments acquired in the CPA:18 Merger, which we had previously accounted for under the equity method.

(g)Amounts for the three months ended March 31, 2022 and December 31, 2021 include non-cash impairment charges of $4.6 million and $13.2 million, respectively, recognized on certain equity method investments in real estate.

(h)We recorded income and distributions from our equity method investment in WLT on a one quarter lag. In January 2022, we reclassified our equity investment in WLT to equity securities at fair value within Other assets, net on our consolidated balance sheets.

(i)The adjustment modifies Adjusted EBITDA for the pro rata share of cash NOI for the partial period with an amount estimated to be equivalent to the additional pro rata share of cash NOI necessary to reflect ownership for the full quarter.

(j)Adjusted EBITDA is a non-GAAP measure. See the Disclosures Regarding Non-GAAP and Other Metrics section that follows for a description of our non-GAAP measures.


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W. P. Carey Inc.

Appendix – Fourth Quarter 2022


Adjusted EBITDA, Investment Management – Last Five Quarters

In thousands.


	Three Months Ended
	Dec. 31, 2022		Sep. 30, 2022		Jun. 30, 2022		Mar. 31, 2022		Dec. 31, 2021
Net (loss) income from Investment Management	$	(604)	$	(6,447)	$	4,450	$	10,137	$	4,928

Adjustments to Derive Adjusted EBITDA (a)
Provision for (benefit from) income taxes	1,218		4,632		297		170		(279)
Other (gains) and losses (b)	(213)		1,060		1,591		(1,327)		1,330
Impairment charges — Investment Management goodwill (c)	—		29,334		—		—		—
Gain on change in control of interests (d)	—		(22,526)		—		—		—
Merger and other expenses	—		—		—		3		36
	1,005		12,500		1,888		(1,154)		1,087

Adjustments for Pro Rata Ownership
Equity Method Investments in the Managed Programs: (e)
Less: Income from equity method investments in the Managed Programs	—		(1,512)		(59)		(2,972)		(50)
Add: Distributions received from equity method investments in the Managed Programs	—		535		535		520		2,142
	—		(977)		476		(2,452)		2,092
Add: Intra-period normalization of CPA:18 Merger (closed August 1, 2022) (f)	—		(4,436)		—		—		—
Adjusted EBITDA – Investment Management (g)	$	401	$	640	$	6,814	$	6,531	$	8,107

________

(b)Primarily comprised of gains and losses from foreign currency exchange rate movements and marketable securities. Amounts from period to period will not be comparable due to unpredictable fluctuations in these gains and losses.

(c)Amount for the three months ended September 30, 2022 represents an impairment charge recognized on goodwill within our Investment Management segment, since future Investment Management cash flows are expected to be minimal.

(d)Amount for the three months ended September 30, 2022 represents a gain recognized on our previously held interest in shares of CPA:18 – Global common stock in connection with the CPA:18 Merger.

(e)Adjustments to include cash distributions received from the Managed Programs in place of our pro rata share of net income from our ownership in the Managed Programs. Distributions for the three months ended December 31, 2021 included a special distribution from CPA:18 – Global totaling $1.6 million.

(f)The adjustment reduces Adjusted EBITDA for advisory fees received from CPA:18 – Global during the three months ended September 30, 2022.

(g)Adjusted EBITDA is a non-GAAP measure. See the Disclosures Regarding Non-GAAP and Other Metrics section that follows for a description of our non-GAAP measures.


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W. P. Carey Inc.

Appendix – Fourth Quarter 2022


Disclosures Regarding Non-GAAP and Other Metrics

Non-GAAP Financial Disclosures

FFO and AFFO

Due to certain unique operating characteristics of real estate companies, as discussed below, NAREIT, an industry trade group, has promulgated a non-GAAP measure known as FFO, which we believe to be an appropriate supplemental measure, when used in addition to and in conjunction with results presented in accordance with GAAP, to reflect the operating performance of a REIT. The use of FFO is recommended by the REIT industry as a supplemental non-GAAP measure. FFO is not equivalent to, nor a substitute for, net income or loss as determined under GAAP.

We define FFO, a non-GAAP measure, consistent with the standards established by the White Paper on FFO approved by the Board of Governors of NAREIT, as restated in December 2018. The White Paper defines FFO as net income or loss computed in accordance with GAAP, excluding gains or losses from sales of property, impairment charges on real estate or other assets incidental to the company’s main business, gains or losses on changes in control of interests in real estate and depreciation and amortization from real estate assets; and after adjustments for unconsolidated partnerships and jointly owned investments. Adjustments for unconsolidated partnerships and jointly owned investments are calculated to reflect FFO.

We also modify the NAREIT computation of FFO to adjust GAAP net income for certain non-cash charges, such as amortization of real estate-related intangibles, deferred income tax benefits and expenses, straight-line rent and related reserves, other non-cash rent adjustments, non-cash allowance for credit losses on loans receivable and direct financing leases, stock-based compensation, non-cash environmental accretion expense, amortization of discounts and premiums on debt and amortization of deferred financing costs. Our assessment of our operations is focused on long-term sustainability and not on such non-cash items, which may cause short-term fluctuations in net income but have no impact on cash flows. Additionally, we exclude non-core income and expenses, such as gains or losses from extinguishment of debt and merger and acquisition expenses. We also exclude realized and unrealized gains/losses on foreign currency exchange rate movements (other than those realized on the settlement of foreign currency derivatives), which are not considered fundamental attributes of our business plan and do not affect our overall long-term operating performance. We refer to our modified definition of FFO as AFFO. We exclude these items from GAAP net income to arrive at AFFO as they are not the primary drivers in our decision-making process and excluding these items provides investors a view of our portfolio performance over time and makes it more comparable to other REITs that are currently not engaged in acquisitions, mergers and restructuring, which are not part of our normal business operations. AFFO also reflects adjustments for unconsolidated partnerships and jointly owned investments. We use AFFO as one measure of our operating performance when we formulate corporate goals, evaluate the effectiveness of our strategies and determine executive compensation.

We believe that AFFO is a useful supplemental measure for investors to consider as we believe it will help them to better assess the sustainability of our operating performance without the potentially distorting impact of these short-term fluctuations. However, there are limits on the usefulness of AFFO to investors. For example, impairment charges and unrealized foreign currency exchange rate losses that we exclude may become actual realized losses upon the ultimate disposition of the properties in the form of lower cash proceeds or other considerations. We use our FFO and AFFO measures as supplemental financial measures of operating performance. We do not use our FFO and AFFO measures as, nor should they be considered to be, alternatives to net income computed under GAAP, or as alternatives to net cash provided by operating activities computed under GAAP, or as indicators of our ability to fund our cash needs.

Same Store Pro Rata Rental Income

Same store pro rata rental income is a non-GAAP financial measure that is intended to reflect the performance of our net leased properties. We define this as contractual rents from our leased properties. Same store rental income excludes reimbursable tenant costs, amortization of intangibles and straight-line rent adjustments that are included in GAAP lease revenues. We present same store rental income on a pro rata basis to account for our share of income related to unconsolidated joint ventures and noncontrolling interests. We believe that same store pro rata rental income is a helpful measure that both investors and management can use to evaluate the financial performance of our leased properties. Same store pro rata rental income should not be considered as an alternative to lease revenues as an indication of our financial performance or to cash flows as a measure of liquidity or our ability to fund all needs. The method by which we calculate and present same store rental income and/or same store pro rata rental income may not be directly comparable to the way other REITs present such metrics.

Pro Rata Cash NOI

Cash net operating income (“cash NOI”) is a non-GAAP financial measure that is intended to reflect the performance of our net leased and operating properties. We define cash NOI as cash rents from our leased and operating properties less non-reimbursable property expenses. Cash NOI excludes amortization of intangibles and straight-line rent adjustments that are included in GAAP lease revenues. We present cash NOI on a pro rata basis (“pro rata cash NOI”) to account for our share of income related to unconsolidated joint ventures and noncontrolling interests. We believe that pro rata cash NOI is a helpful measure that both investors and management can use to evaluate the financial performance of our leased and operating properties and it allows for comparison of our operating performance between periods and to other REITs. Pro rata cash NOI should not be considered as an alternative to net income as an indication of our financial performance or to cash flows as a measure of liquidity or our ability to fund all needs. The method by which we calculate and present cash NOI and/or pro rata cash NOI may not be directly comparable to the way other REITs present such metrics.


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W. P. Carey Inc.

Appendix – Fourth Quarter 2022

Normalized Pro Rata Cash NOI

Normalized pro rata cash NOI is pro rata cash NOI as defined above adjusted primarily to exclude our pro rata share of cash NOI from properties disposed of during the most recent quarter and to include a full quarter of pro rata cash NOI related to properties acquired or capital investments and commitments completed during the period, as applicable. We believe this measure provides a helpful representation of our net operating income from our in-place leased and operating properties.

Adjusted EBITDA

We believe that EBITDA is a useful supplemental measure to investors and analysts for assessing the performance of our business segments because (i) it removes the impact of our capital structure from our operating results and (ii) it is helpful when comparing our operating performance to that of companies in our industry without regard to such items, which can vary substantially from company to company. Adjusted EBITDA as disclosed represents EBITDA, modified to include other adjustments to GAAP net income for certain non-cash charges, such as impairments, non-cash rent adjustments and unrealized gains and losses from our hedging activity. Additionally, we exclude gains and losses on sale of real estate, which are not considered fundamental attributes of our business plans and do not affect our overall long-term operating performance. We exclude these items from adjusted EBITDA as they are not the primary drivers in our decision-making process. Adjusted EBITDA reflects adjustments for unconsolidated partnerships and jointly owned investments. Our assessment of our operations is focused on long-term sustainability and not on such non-cash and non-core items, which may cause short-term fluctuations in net income but have no impact on cash flows. We believe that adjusted EBITDA is a useful supplemental measure to investors and analysts, although it does not represent net income that is computed in accordance with GAAP. Accordingly, adjusted EBITDA should not be considered as an alternative to net income or as an indicator of our financial performance. EBITDA and adjusted EBITDA as calculated by us may not be comparable to similarly titled measures of other companies.

Cash Interest Expense

Cash interest expense is a non-GAAP financial measure equal to interest expense calculated in accordance with GAAP, plus capitalized interest and other non-cash amortization expense, less amortization of deferred financing costs and debt premiums/discounts, adjusted for pro rata ownership. See the definition of cash interest expense coverage ratio below for a reconciliation of cash interest expense to its most directly compared GAAP measure, interest expense.

Cash Interest Expense Coverage Ratio

Cash interest expense coverage ratio is a non-GAAP financial measure representing the ratio of Adjusted EBITDA to cash interest expense on a trailing 12 months basis. We believe this ratio is useful to investors as a supplemental measure of our ability to satisfy fixed interest expense obligations. Cash interest expense for the trailing 12 months as of December 31, 2022 is equal to $206.5 million, comprised of interest expense calculated in accordance with GAAP ($219.2 million), plus capitalized interest ($1.3 million) and other non-cash amortization expense (less than $0.1 million), less amortization of deferred financing costs and debt premiums/discounts ($17.2 million), adjusted for pro rata ownership ($3.2 million).

Other Metrics

Pro Rata Metrics

This supplemental package contains certain metrics prepared on a pro rata basis. We refer to these metrics as pro rata metrics. We have a number of investments, usually with our affiliates, in which our economic ownership is less than 100%. On a full consolidation basis, we report 100% of the assets, liabilities, revenues and expenses of those investments that are deemed to be under our control or for which we are deemed to be the primary beneficiary, even if our ownership is less than 100%. Also, for all other jointly owned investments, which we do not control, we report our net investment and our net income or loss from that investment. On a pro rata basis, we generally present our proportionate share, based on our economic ownership of these jointly owned investments, of the assets, liabilities, revenues and expenses of those investments. Multiplying each of our jointly owned investments’ financial statement line items by our percentage ownership and adding or subtracting those amounts from our totals, as applicable, may not accurately depict the legal and economic implications of holding an ownership interest of less than 100% in our jointly owned investments.

ABR

ABR represents contractual minimum annualized base rent for our net-leased properties and reflects exchange rates as of December 31, 2022. If there is a rent abatement, we annualize the first monthly contractual base rent following the free rent period. ABR is not applicable to operating properties and is presented on a pro rata basis.


						Investing for the long runTM \| 45

W. P. Carey (WPC) 8-KW. P. Carey Inc. Announces Fourth Quarter and Full Year 2022 Financial Results