W. P. Carey 8K W. P. Carey Announces Fourth Quarter and Full Year 2023 Financial Results | WPC 9 Feb 24

Exhibit 99.2

W. P. Carey Inc.

Supplemental Information

Fourth Quarter 2023

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
NLOP			Net Lease Office Properties
Spin-Off			The spin-off of 59 office properties owned by WPC into NLOP, a separate publicly-traded REIT, which was completed on November 1, 2023
U.S.			United States
ABR			Contractual minimum annualized base rent
SEC			Securities and Exchange Commission
NAREIT			National Association of Real Estate Investment Trusts (an industry trade group)
EUR			Euro
EURIBOR			Euro Interbank Offered Rate
SOFR			Secured Overnight Financing Rate
SONIA			Sterling Overnight Index Average
TIBOR			Tokyo Interbank Offered Rate

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 NAREIT. 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 2023


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			6
Investment Management			7
FFO and AFFO – Last Five Quarters
Consolidated			8
Real Estate			9
Investment Management			10
Elements of Pro Rata Statement of Income and AFFO Adjustments			11
Capital Expenditures			12

Balance Sheets and Capitalization
Consolidated Balance Sheets			14
Capitalization			15
Debt Overview			16
Debt Maturity			17
Senior Unsecured Notes			18

Real Estate
Investment Activity
Investment Volume			20
Capital Investments and Commitments			22
Dispositions			23
Joint Ventures			24
Top Ten Tenants			25
Diversification by Property Type			26
Diversification by Tenant Industry			27
Diversification by Geography			28
Contractual Rent Increases			29
Same-Store Analysis			30
Leasing Activity			33
Lease Expirations			34
Self Storage Operating Properties Portfolio			35

Appendix
Normalized Pro Rata Cash NOI			37
Adjusted EBITDA – Last Five Quarters
Consolidated			39
Real Estate			40
Investment Management			41
Disclosures Regarding Non-GAAP and Other Metrics			42

W. P. Carey Inc.

Overview – Fourth Quarter 2023


Summary Metrics

As of or for the three months ended December 31, 2023.


Financial Results
	Real Estate Segment
			Total (a)
Revenues, including reimbursable costs – consolidated ($000s)	$	410,376		$	412,437
Net income attributable to W. P. Carey ($000s)	142,753			144,294
Net income attributable to W. P. Carey per diluted share	0.65			0.66
Normalized pro rata cash NOI from real estate ($000s) (b) (c)	349,342			349,342
Adjusted EBITDA ($000s) (b) (c)	338,653			340,668
AFFO attributable to W. P. Carey ($000s) (b) (c)	259,335			261,350
AFFO attributable to W. P. Carey per diluted share (b) (c)	1.18			1.19

Dividends declared per share – current quarter				0.860
Dividends declared per share – current quarter annualized				3.440
Dividend yield – annualized, based on quarter end share price of $64.81				5.3		%
Dividend payout ratio – for the full year ended December 31, 2023 (d)				78.5		%
Dividend payout ratio – for the three months ended December 31, 2023 (e)				72.3		%

Balance Sheet and Capitalization
Equity market capitalization – based on quarter end share price of $64.81 ($000s)				$	14,172,124
Pro rata net debt ($000s) (f)				7,654,170
Enterprise value ($000s)				21,826,294

Total consolidated debt ($000s)				8,144,182
Gross assets ($000s) (g)				19,566,570
Liquidity ($000s) (h)				2,223,621

Pro rata net debt to enterprise value (c)				35.1		%
Pro rata net debt to adjusted EBITDA (annualized) (b) (c)				5.6x
Total consolidated debt to gross assets				41.6		%
Total consolidated secured debt to gross assets				3.0		%
Cash interest expense coverage ratio (b) (c)				5.3x

Weighted-average interest rate (c)				3.2		%
Weighted-average debt maturity (years) (c)				3.9

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

Real Estate Portfolio (Pro Rata)
ABR – total portfolio ($000s) (i)				$	1,339,352
ABR – unencumbered portfolio (% / $000s) (i) (j)	94.0% /			$	1,259,190
Number of net-leased properties				1,424
Number of operating properties (k)				96
Number of tenants – net-leased properties				336

ABR from top ten tenants as a % of total ABR – net-leased properties				21.1		%
ABR from investment grade tenants as a % of total ABR – net-leased properties (l)				23.9		%
Contractual same-store growth (m)				4.1		%

Net-leased properties – square footage (millions)				172.7

Occupancy – net-leased properties				98.1		%
Weighted-average lease term (years)				11.7

Investment volume – current quarter ($000s)				$	345,565
Dispositions – current quarter ($000s)				266,059

Maximum commitment for capital investments and commitments expected to be completed during 2024 ($000s)				80,142
Construction loan funding expected to be completed during 2024 ($000s)				30,500
Total capital investments, commitments and construction loan funding expected to be completed during 2024 ($000s)			110,642

________


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W. P. Carey Inc.

Overview – Fourth Quarter 2023

(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 dividends declared per share divided by AFFO per diluted share on a quarter-to-date basis

(f)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.

(g)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 $934.1 million and above-market rent intangible assets of $481.6 million.

(h)Represents (i) availability under our Senior Unsecured Credit Facility (net of amounts reserved for standby letters of credit) and (ii) consolidated cash and cash equivalents.

(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 89 self-storage properties, five hotels and two student housing properties.

(l)Percentage of portfolio is based on ABR, as of December 31, 2023. Includes tenants or guarantors with investment grade ratings (18.1%) and subsidiaries of non-guarantor parent companies with investment grade ratings (5.8%). 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 Run® \| 2

W. P. Carey Inc.

Overview – Fourth Quarter 2023


Components of Net Asset Value

Dollars in thousands, except per share amounts.


Normalized Pro Rata Cash NOI (a) (b)	Three Months Ended Dec. 31, 2023
Net lease properties	$	328,659
Self-storage and other operating properties (c)	20,683
Total normalized pro rata cash NOI (a) (b)	$	349,342

Balance Sheet – Selected Information (Consolidated Unless Otherwise Stated)	As of Dec. 31, 2023
Assets
Book value of real estate excluded from normalized pro rata cash NOI (d)	$	235,486
Cash and cash equivalents	633,860
Las Vegas retail complex construction loan (e)	235,979
Other secured loans receivable, net	11,250
Other assets, net:
Investment in shares of Lineage Logistics (a cold storage REIT)	$	404,921
Straight-line rent adjustments	305,049
Deferred charges	68,416
Restricted cash, including escrow	58,111
Office lease right-of-use assets, net	54,730
Taxes receivable	52,468
Non-rent tenant and other receivables	51,863
Deferred income taxes	18,518
Securities and derivatives	15,864
Leasehold improvements, furniture and fixtures	13,763
Prepaid expenses	12,868
Rent receivables (f)	2,344
Due from affiliates	2,176
Other	35,383
Total other assets, net	$	1,096,474

Liabilities
Total pro rata debt outstanding (b) (g)	$	8,288,030
Dividends payable	192,332
Deferred income taxes	180,650
Accounts payable, accrued expenses and other liabilities:
Accounts payable and accrued expenses	$	177,460
Operating lease liabilities	138,733
Prepaid and deferred rents	125,957
Tenant security deposits	65,196
Accrued taxes payable	56,172
Other	52,232
Total accounts payable, accrued expenses and other liabilities	$	615,750

________

(a)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.

(b)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)Other operating properties include five hotels and two student housing properties.

(d)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.

(e)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.

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

(g)Excludes unamortized discount, net totaling $31.8 million and unamortized deferred financing costs totaling $21.5 million as of December 31, 2023.


						Investing for the Long Run® \| 3

W. P. Carey Inc.

Financial Results

Fourth Quarter 2023


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W. P. Carey Inc.

Financial Results – Fourth Quarter 2023


Consolidated Statements of Income – Last Five Quarters

In thousands, except share and per share amounts.


	Three Months Ended
	Dec. 31, 2023		Sep. 30, 2023		Jun. 30, 2023		Mar. 31, 2023		Dec. 31, 2022
Revenues
Real Estate:
Lease revenues	$	336,757	$	369,159	$	369,124	$	352,336	$	347,636
Income from finance leases and loans receivable	31,532		27,575		27,311		20,755		17,472
Operating property revenues	39,477		49,218		50,676		40,886		28,951
Other lease-related income	2,610		2,310		5,040		13,373		8,083
	410,376		448,262		452,151		427,350		402,142
Investment Management:
Asset management revenue (a)	1,348		194		303		339		383
Other advisory income and reimbursements (b)	667		—		—		—		—
Reimbursable costs from affiliates	46		97		124		101		104
	2,061		291		427		440		487
	412,437		448,553		452,578		427,790		402,629
Operating Expenses
Depreciation and amortization	129,484		144,771		143,548		156,409		140,749
Impairment charges — real estate (c)	71,238		15,173		—		—		12,734
General and administrative	21,533		23,258		24,788		26,448		22,728
Operating property expenses	20,403		26,570		26,919		21,249		11,719
Reimbursable tenant costs	18,942		20,498		20,523		21,976		21,084
Property expenses, excluding reimbursable tenant costs	13,287		13,021		5,371		12,772		13,879
Stock-based compensation expense	8,693		9,050		8,995		7,766		9,739
Merger and other expenses (d)	(641)		4,152		1,419		24		2,058
Reimbursable costs from affiliates	46		97		124		101		104
	282,985		256,590		231,687		246,745		234,794
Other Income and Expenses
Gain on sale of real estate, net (e)	134,026		2,401		1,808		177,749		5,845
Interest expense	(72,194)		(76,974)		(75,488)		(67,196)		(67,668)
Other gains and (losses) (f)	(45,777)		2,859		(1,366)		8,100		97,059
Non-operating income (g)	7,445		4,862		4,509		4,626		6,526
Earnings from equity method investments	5,006		4,978		4,355		5,236		6,032
	28,506		(61,874)		(66,182)		128,515		47,794
Income before income taxes	157,958		130,089		154,709		309,560		215,629
Provision for income taxes	(13,714)		(5,090)		(10,129)		(15,119)		(6,126)
Net Income	144,244		124,999		144,580		294,441		209,503
Net loss (income) attributable to noncontrolling interests	50		41		40		(61)		35
Net Income Attributable to W. P. Carey	$	144,294	$	125,040	$	144,620	$	294,380	$	209,538

Basic Earnings Per Share	$	0.66	$	0.58	$	0.67	$	1.39	$	1.00
Diluted Earnings Per Share	$	0.66	$	0.58	$	0.67	$	1.39	$	1.00
Weighted-Average Shares Outstanding
Basic	219,277,446		215,097,114		215,075,114		211,951,930		209,281,888
Diluted	219,469,641		215,252,969		215,184,485		212,345,047		209,822,650

Dividends Declared Per Share	$	0.860	$	1.071	$	1.069	$	1.067	$	1.065

________

(a)Amount for the three months ended December 31, 2023 is comprised of $1.2 million from NLOP and $0.1 million from CESH.

(b)Amounts are related to administrative reimbursement for our management of NLOP.

(c)Amount for the three months ended December 31, 2023 includes an impairment charge of $47.3 million recognized on the 59 properties contributed to NLOP in connection with the Spin-Off.

(d)Amount for the three months ended September 30, 2023 is primarily comprised of costs incurred in connection with the Spin-Off.

(e)Amount for the three months ended December 31, 2023 includes a gain on sale of real estate of $59.1 million recognized upon entering into an agreement to sell our portfolio of 70 office properties located in Spain to the tenant occupying the properties and the reclassification of the investment to net investments in sales-type leases. Amount for the three months ended March 31, 2023 includes a gain on sale of real estate of $176.2 million recognized upon receiving notice of the exercise of a purchase option for a portfolio of 78 net-lease self-storage properties and the reclassification of the investment to net investments in sales-type leases.

(f)Amount for the three months ended December 31, 2023 is primarily comprised of a non-cash allowance for credit losses of $35.2 million, net losses on foreign currency exchange rate movements of $6.5 million and non-cash losses on non-hedging derivatives of $4.3 million.

(g)Amount for the three months ended December 31, 2023 is comprised of interest income on deposits of $4.6 million and realized gains on foreign currency exchange derivatives of $2.9 million.


						Investing for the Long Run® \| 5

W. P. Carey Inc.

Financial Results – Fourth Quarter 2023


Statements of Income, Real Estate – Last Five Quarters

In thousands, except share and per share amounts.


	Three Months Ended
	Dec. 31, 2023		Sep. 30, 2023		Jun. 30, 2023		Mar. 31, 2023		Dec. 31, 2022
Revenues
Lease revenues	$	336,757	$	369,159	$	369,124	$	352,336	$	347,636
Income from finance leases and loans receivable	31,532		27,575		27,311		20,755		17,472
Operating property revenues	39,477		49,218		50,676		40,886		28,951
Other lease-related income	2,610		2,310		5,040		13,373		8,083
	410,376		448,262		452,151		427,350		402,142
Operating Expenses
Depreciation and amortization	129,484		144,771		143,548		156,409		140,749
Impairment charges — real estate (a)	71,238		15,173		—		—		12,734
General and administrative	21,533		23,258		24,788		26,448		22,728
Operating property expenses	20,403		26,570		26,919		21,249		11,719
Reimbursable tenant costs	18,942		20,498		20,523		21,976		21,084
Property expenses, excluding reimbursable tenant costs	13,287		13,021		5,371		12,772		13,879
Stock-based compensation expense	8,693		9,050		8,995		7,766		9,739
Merger and other expenses (b)	(641)		4,152		1,419		24		2,058
	282,939		256,493		231,563		246,644		234,690
Other Income and Expenses
Gain on sale of real estate, net (c)	134,026		2,401		1,808		177,749		5,845
Interest expense	(72,194)		(76,974)		(75,488)		(67,196)		(67,668)
Other gains and (losses) (d)	(45,303)		2,180		(890)		7,586		96,846
Non-operating income	7,445		4,862		4,509		4,613		6,508
Earnings from equity method investments in real estate	5,006		4,978		4,355		5,236		6,032
	28,980		(62,553)		(65,706)		127,988		47,563
Income before income taxes	156,417		129,216		154,882		308,694		215,015
Provision for income taxes	(13,714)		(5,090)		(10,236)		(15,402)		(4,908)
Net Income from Real Estate	142,703		124,126		144,646		293,292		210,107
Net loss (income) attributable to noncontrolling interests	50		41		40		(61)		35
Net Income from Real Estate Attributable to W. P. Carey	$	142,753	$	124,167	$	144,686	$	293,231	$	210,142

Basic Earnings Per Share	$	0.65	$	0.58	$	0.67	$	1.38	$	1.00
Diluted Earnings Per Share	$	0.65	$	0.58	$	0.67	$	1.38	$	1.00
Weighted-Average Shares Outstanding
Basic	219,277,446		215,097,114		215,075,114		211,951,930		209,281,888
Diluted	219,469,641		215,252,969		215,184,485		212,345,047		209,822,650

________

(a)Amount for the three months ended December 31, 2023 includes an impairment charge of $47.3 million recognized on the 59 properties contributed to NLOP in connection with the Spin-Off.

(b)Amount for the three months ended September 30, 2023 is primarily comprised of costs incurred in connection with the Spin-Off.

(c)Amount for the three months ended December 31, 2023 includes a gain on sale of real estate of $59.1 million recognized upon entering into an agreement to sell our portfolio of 70 office properties located in Spain to the tenant occupying the properties and the reclassification of the investment to net investments in sales-type leases. Amount for the three months ended March 31, 2023 includes a gain on sale of real estate of $176.2 million recognized upon receiving notice of the exercise of a purchase option for a portfolio of 78 net-lease self-storage properties and the reclassification of the investment to net investments in sales-type leases.

(d)Amount for the three months ended December 31, 2023 is primarily comprised of a non-cash allowance for credit losses of $35.2 million, net losses on foreign currency exchange rate movements of $6.5 million and non-cash losses on non-hedging derivatives of $4.3 million.


						Investing for the Long Run® \| 6

W. P. Carey Inc.

Financial Results – Fourth Quarter 2023


Statements of Income, Investment Management – Last Five Quarters

In thousands, except share and per share amounts.


	Three Months Ended
	Dec. 31, 2023		Sep. 30, 2023		Jun. 30, 2023		Mar. 31, 2023		Dec. 31, 2022
Revenues
Asset management revenue (a)	$	1,348	$	194	$	303	$	339	$	383
Other advisory income and reimbursements (b)	667		—		—		—		—
Reimbursable costs from affiliates	46		97		124		101		104
	2,061		291		427		440		487
Operating Expenses
Reimbursable costs from affiliates	46		97		124		101		104
	46		97		124		101		104
Other Income and Expenses
Other gains and (losses)	(474)		679		(476)		514		213
Non-operating income	—		—		—		13		18
	(474)		679		(476)		527		231
Income (loss) before income taxes	1,541		873		(173)		866		614
Benefit from (provision for) income taxes	—		—		107		283		(1,218)
Net Income (Loss) from Investment Management Attributable to W. P. Carey	$	1,541	$	873	$	(66)	$	1,149	$	(604)

Basic Earnings Per Share	$	0.01	$	0.00	$	0.00	$	0.01	$	0.00
Diluted Earnings Per Share	$	0.01	$	0.00	$	0.00	$	0.01	$	0.00
Weighted-Average Shares Outstanding
Basic	219,277,446		215,097,114		215,075,114		211,951,930		209,281,888
Diluted	219,469,641		215,252,969		215,184,485		212,345,047		209,822,650

________

(a)Amount for the three months ended December 31, 2023 is comprised of $1.2 million from NLOP and $0.1 million from CESH.

(b)Amounts are related to administrative reimbursement for our management of NLOP


						Investing for the Long Run® \| 7

W. P. Carey Inc.

Financial Results – Fourth Quarter 2023


FFO and AFFO, Consolidated – Last Five Quarters

In thousands, except share and per share amounts.


	Three Months Ended
	Dec. 31, 2023		Sep. 30, 2023		Jun. 30, 2023		Mar. 31, 2023		Dec. 31, 2022
Net income attributable to W. P. Carey	$	144,294	$	125,040	$	144,620	$	294,380	$	209,538
Adjustments:
Gain on sale of real estate, net (a)	(134,026)		(2,401)		(1,808)		(177,749)		(5,845)
Depreciation and amortization of real property	128,839		144,111		142,932		155,868		140,157
Impairment charges — real estate (b)	71,238		15,173		—		—		12,734
Proportionate share of adjustments to earnings from equity method investments (c)	2,942		2,950		2,883		2,606		2,296
Proportionate share of adjustments for noncontrolling interests (d)	(133)		34		(268)		(299)		(294)
Total adjustments	68,860		159,867		143,739		(19,574)		149,048
FFO (as defined by NAREIT) Attributable to W. P. Carey (e)	213,154		284,907		288,359		274,806		358,586
Adjustments:
Other (gains) and losses (f)	45,777		(2,859)		1,366		(8,100)		(97,059)
Straight-line and other leasing and financing adjustments	(19,071)		(18,662)		(19,086)		(15,050)		(14,766)
Stock-based compensation	8,693		9,050		8,995		7,766		9,739
Above- and below-market rent intangible lease amortization, net	6,644		7,835		8,824		10,861		8,652
Amortization of deferred financing costs	4,895		4,805		5,904		4,940		5,705
Tax (benefit) expense – deferred and other	2,507		(4,349)		(2,723)		4,366		(3,325)
Merger and other expenses (g)	(641)		4,152		1,419		24		2,058
Other amortization and non-cash items	152		584		527		472		490
Proportionate share of adjustments to earnings from equity method investments (c)	(663)		(691)		(255)		(926)		(319)
Proportionate share of adjustments for noncontrolling interests (d)	(97)		(380)		(24)		60		(85)
Total adjustments	48,196		(515)		4,947		4,413		(88,910)
AFFO Attributable to W. P. Carey (e)	$	261,350	$	284,392	$	293,306	$	279,219	$	269,676

Summary
FFO (as defined by NAREIT) attributable to W. P. Carey (e)	$	213,154	$	284,907	$	288,359	$	274,806	$	358,586
FFO (as defined by NAREIT) attributable to W. P. Carey per diluted share (e)	$	0.97	$	1.32	$	1.34	$	1.29	$	1.70
AFFO attributable to W. P. Carey (e)	$	261,350	$	284,392	$	293,306	$	279,219	$	269,676
AFFO attributable to W. P. Carey per diluted share (e)	$	1.19	$	1.32	$	1.36	$	1.31	$	1.29
Diluted weighted-average shares outstanding	219,469,641		215,252,969		215,184,485		212,345,047		209,822,650

________

(a)Amount for the three months ended December 31, 2023 includes a gain on sale of real estate of $59.1 million recognized upon entering into an agreement to sell our portfolio of 70 office properties located in Spain to the tenant occupying the properties and the reclassification of the investment to net investments in sales-type leases. Amount for the three months ended March 31, 2023 includes a gain on sale of real estate of $176.2 million recognized upon receiving notice of the exercise of a purchase option for a portfolio of 78 net-lease self-storage properties and the reclassification of the investment to net investments in sales-type leases.

(b)Amount for the three months ended December 31, 2023 includes an impairment charge of $47.3 million recognized on the 59 properties contributed to NLOP in connection with the Spin-Off.

(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.

(g)Amount for the three months ended September 30, 2023 is primarily comprised of costs incurred in connection with the Spin-Off.


						Investing for the Long Run® \| 8

W. P. Carey Inc.

Financial Results – Fourth Quarter 2023


FFO and AFFO, Real Estate – Last Five Quarters

In thousands, except share and per share amounts.


	Three Months Ended
	Dec. 31, 2023		Sep. 30, 2023		Jun. 30, 2023		Mar. 31, 2023		Dec. 31, 2022
Net income from Real Estate attributable to W. P. Carey	$	142,753	$	124,167	$	144,686	$	293,231	$	210,142
Adjustments:
Gain on sale of real estate, net (a)	(134,026)		(2,401)		(1,808)		(177,749)		(5,845)
Depreciation and amortization of real property	128,839		144,111		142,932		155,868		140,157
Impairment charges — real estate (b)	71,238		15,173		—		—		12,734
Proportionate share of adjustments to earnings from equity method investments (c)	2,942		2,950		2,883		2,606		2,296
Proportionate share of adjustments for noncontrolling interests (d)	(133)		34		(268)		(299)		(294)
Total adjustments	68,860		159,867		143,739		(19,574)		149,048
FFO (as defined by NAREIT) Attributable to W. P. Carey – Real Estate (e)	211,613		284,034		288,425		273,657		359,190
Adjustments:
Other (gains) and losses (f)	45,303		(2,180)		890		(7,586)		(96,846)
Straight-line and other leasing and financing adjustments	(19,071)		(18,662)		(19,086)		(15,050)		(14,766)
Stock-based compensation	8,693		9,050		8,995		7,766		9,739
Above- and below-market rent intangible lease amortization, net	6,644		7,835		8,824		10,861		8,652
Amortization of deferred financing costs	4,895		4,805		5,904		4,940		5,705
Tax (benefit) expense – deferred and other	2,507		(4,349)		(2,723)		4,366		(3,862)
Merger and other expenses (g)	(641)		4,152		1,419		24		2,058
Other amortization and non-cash items	152		584		527		472		490
Proportionate share of adjustments to earnings from equity method investments (c)	(663)		(691)		(255)		(926)		(320)
Proportionate share of adjustments for noncontrolling interests (d)	(97)		(380)		(24)		60		(85)
Total adjustments	47,722		164		4,471		4,927		(89,235)
AFFO Attributable to W. P. Carey – Real Estate (e)	$	259,335	$	284,198	$	292,896	$	278,584	$	269,955

Summary
FFO (as defined by NAREIT) attributable to W. P. Carey – Real Estate (e)	$	211,613	$	284,034	$	288,425	$	273,657	$	359,190
FFO (as defined by NAREIT) attributable to W. P. Carey per diluted share – Real Estate (e)	$	0.96	$	1.32	$	1.34	$	1.29	$	1.70
AFFO attributable to W. P. Carey – Real Estate (e)	$	259,335	$	284,198	$	292,896	$	278,584	$	269,955
AFFO attributable to W. P. Carey per diluted share – Real Estate (e)	$	1.18	$	1.32	$	1.36	$	1.31	$	1.29
Diluted weighted-average shares outstanding	219,469,641		215,252,969		215,184,485		212,345,047		209,822,650

________

(b)Amount for the three months ended December 31, 2023 includes an impairment charge of $47.3 million recognized on the 59 properties contributed to NLOP in connection with the Spin-Off.

(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.

(g)Amount for the three months ended September 30, 2023 is primarily comprised of costs incurred in connection with the Spin-Off.


						Investing for the Long Run® \| 9

W. P. Carey Inc.

Financial Results – Fourth Quarter 2023


FFO and AFFO, Investment Management – Last Five Quarters

In thousands, except share and per share amounts.


	Three Months Ended
	Dec. 31, 2023		Sep. 30, 2023		Jun. 30, 2023		Mar. 31, 2023		Dec. 31, 2022
Net income (loss) from Investment Management attributable to W. P. Carey	$	1,541	$	873	$	(66)	$	1,149	$	(604)


FFO (as defined by NAREIT) Attributable to W. P. Carey – Investment Management (a)	1,541		873		(66)		1,149		(604)
Adjustments:
Other (gains) and losses	474		(679)		476		(514)		(213)
Tax expense – deferred and other	—		—		—		—		537
Proportionate share of adjustments to earnings from equity method investments (b)	—		—		—		—		1
Total adjustments	474		(679)		476		(514)		325
AFFO Attributable to W. P. Carey – Investment Management (c)	$	2,015	$	194	$	410	$	635	$	(279)

Summary
FFO (as defined by NAREIT) attributable to W. P. Carey – Investment Management (a)	$	1,541	$	873	$	(66)	$	1,149	$	(604)
FFO (as defined by NAREIT) attributable to W. P. Carey per diluted share – Investment Management (a)	$	0.01	$	0.00	$	0.00	$	0.00	$	0.00
AFFO attributable to W. P. Carey – Investment Management (a)	$	2,015	$	194	$	410	$	635	$	(279)
AFFO attributable to W. P. Carey per diluted share – Investment Management (a)	$	0.01	$	0.00	$	0.00	$	0.00	$	0.00
Diluted weighted-average shares outstanding	219,469,641		215,252,969		215,184,485		212,345,047		209,822,650

________

(a)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.

(b)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.


						Investing for the Long Run® \| 10

W. P. Carey Inc.

Financial Results – Fourth Quarter 2023


Elements of Pro Rata Statement of Income and AFFO Adjustments

In thousands. For the three months ended December 31, 2023.

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	$	4,269	$	(256)	$	(14,567)	(c)
Income from finance leases and loans receivable	—		—		524
Operating property revenues:
Hotel revenues	—		—		—
Self-storage revenues	2,464		—		—
Student housing revenues	—		—		—
Other lease-related income	—		—		(459)

Investment Management:
Asset management revenue	—		—		—
Other advisory income and reimbursements	—		—		—
Reimbursable costs from affiliates	—		—		—

Operating Expenses
Depreciation and amortization	2,787		(133)		(131,592)		(d)
Impairment charges — real estate	—		—		(71,238)		(e) (f)
General and administrative	—		—		—
Operating property expenses:
Hotel expenses	—		—		—
Self-storage expenses	884		—		(28)
Student housing expenses	—		—		—
Reimbursable tenant costs	227		(32)		—
Property expenses, excluding reimbursable tenant costs	182		(20)		(477)		(f)
Stock-based compensation expense	—		—		(8,693)		(f)
Merger and other expenses	—		—		641
Reimbursable costs from affiliates	—		—		—

Other Income and Expenses
Gain on sale of real estate, net	—		—		(134,026)		(g)
Interest expense	(394)		75		4,897		(h)
Other gains and (losses)	(31)		99		45,709		(i)
Non-operating income	14		(5)		—
Earnings from equity method investments:
Income related to joint ventures	(1,919)		—		715		(j)

Provision for income taxes	(323)		(21)		2,876		(k)
Net loss attributable to noncontrolling interests	—		(77)		—

________

(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 $6.6 million and the elimination of non-cash amounts related to straight-line rent and other of $21.2 million.

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

(e)Includes an impairment charge of $47.3 million recognized on the 59 properties contributed to NLOP in connection with the Spin-Off.

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

(g)Includes a gain on sale of real estate of $59.1 million recognized upon entering into an agreement to sell our portfolio of 70 office properties located in Spain to the tenant occupying the properties and the reclassification of the investment to net investments in sales-type leases.

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

(i)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 finance leases, and other items.

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

(k)Primarily represents the elimination of deferred taxes.


						Investing for the Long Run® \| 11

W. P. Carey Inc.

Financial Results – Fourth Quarter 2023


Capital Expenditures

In thousands. For the three months ended December 31, 2023.


Tenant Improvements and Leasing Costs
Tenant improvements	$	10,023
Leasing costs	698
Tenant Improvements and Leasing Costs	10,721

Maintenance Capital Expenditures
Net-lease properties	1,967
Operating properties	1,193
Maintenance Capital Expenditures	3,160

Total: Tenant Improvements and Leasing Costs, and Maintenance Capital Expenditures	$	13,881

Non-Maintenance Capital Expenditures
Net-lease properties	$	3,345
Operating properties	—
Non-Maintenance Capital Expenditures	$	3,345

Other Capital Expenditures
Net-lease properties	$	287
Operating properties	—
Other Capital Expenditures	$	287


						Investing for the Long Run® \| 12

W. P. Carey Inc.

Balance Sheets and Capitalization

Fourth Quarter 2023


						Investing for the Long Run® \| 13

W. P. Carey Inc.

Balance Sheets and Capitalization – Fourth Quarter 2023


Consolidated Balance Sheets

In thousands, except share and per share amounts.


	December 31,
	2023		2022
Assets
Investments in real estate:
Land, buildings and improvements — net lease and other	$	12,095,458	$	13,338,857
Land, buildings and improvements — operating properties	1,256,249		1,095,892
Net investments in finance leases and loans receivable	1,514,923		771,761
In-place lease intangible assets and other	2,308,853		2,659,750
Above-market rent intangible assets	706,773		833,751
Investments in real estate	17,882,256		18,700,011
Accumulated depreciation and amortization (a)	(3,005,479)		(3,269,057)
Assets held for sale, net	37,122		57,944
Net investments in real estate	14,913,899		15,488,898
Equity method investments	354,261		327,502
Cash and cash equivalents	633,860		167,996
Other assets, net	1,096,474		1,080,227
Goodwill	978,289		1,037,412
Total assets	$	17,976,783	$	18,102,035

Liabilities and Equity
Debt:
Senior unsecured notes, net	$	6,035,686	$	5,916,400
Unsecured term loans, net	1,125,564		552,539
Unsecured revolving credit facility	403,785		276,392
Non-recourse mortgages, net	579,147		1,132,417
Debt, net	8,144,182		7,877,748
Accounts payable, accrued expenses and other liabilities	615,750		623,843
Below-market rent and other intangible liabilities, net	136,872		184,584
Deferred income taxes	180,650		178,959
Dividends payable	192,332		228,257
Total liabilities	9,269,786		9,093,391

Preferred stock, $0.001 par value, 50,000,000 shares authorized; none issued	—		—
Common stock, $0.001 par value, 450,000,000 shares authorized; 218,671,874 and 210,620,949 shares, respectively, issued and outstanding	219		211
Additional paid-in capital	11,784,461		11,706,836
Distributions in excess of accumulated earnings	(2,891,424)		(2,486,633)
Deferred compensation obligation	62,046		57,012
Accumulated other comprehensive loss	(254,867)		(283,780)
Total stockholders' equity	8,700,435		8,993,646
Noncontrolling interests	6,562		14,998
Total equity	8,706,997		9,008,644
Total liabilities and equity	$	17,976,783	$	18,102,035

________

(a)Includes $1.6 billion and $1.7 billion of accumulated depreciation on buildings and improvements as of December 31, 2023 and 2022, respectively, and $1.4 billion and $1.6 billion of accumulated amortization on lease intangibles as of December 31, 2023 and 2022, respectively.


						Investing for the Long Run® \| 14

W. P. Carey Inc.

Balance Sheets and Capitalization – Fourth Quarter 2023


Capitalization

In thousands, except share and per share amounts. As of December 31, 2023.


Description	Shares	Share Price		Market Value
Equity
Common equity	218,671,874	$	64.81	$	14,172,124
Preferred equity				—
Total Equity Market Capitalization				14,172,124

				Outstanding Balance (a)
Pro Rata Debt
Non-recourse mortgages				673,989
Unsecured term loans (due February 14, 2028)				580,881
Unsecured term loans (due April 24, 2026)				552,500
Unsecured revolving credit facility (due February 14, 2029)				403,785
Senior unsecured notes:
Due April 1, 2024 (USD)				500,000
Due July 19, 2024 (EUR)				552,500
Due February 1, 2025 (USD)				450,000
Due April 9, 2026 (EUR)				552,500
Due October 1, 2026 (USD)				350,000
Due April 15, 2027 (EUR)				552,500
Due April 15, 2028 (EUR)				552,500
Due July 15, 2029 (USD)				325,000
Due September 28, 2029 (EUR)				165,750
Due June 1, 2030 (EUR)				580,125
Due February 1, 2031 (USD)				500,000
Due February 1, 2032 (USD)				350,000
Due September 28, 2032 (EUR)				221,000
Due April 1, 2033 (USD)				425,000
Total Pro Rata Debt				8,288,030

Total Capitalization				$	22,460,154

________

(a)Excludes unamortized discount, net totaling $31.8 million and unamortized deferred financing costs totaling $21.5 million as of December 31, 2023.


						Investing for the Long Run® \| 15

W. P. Carey Inc.

Balance Sheets and Capitalization – Fourth Quarter 2023


Debt Overview

Dollars in thousands. Pro rata. As of December 31, 2023.


	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 (d)	$	417,755	4.7	%	$	142,678	2.6	%	$	48,272	4.2	%	$	608,705	7.3	%	4.2	%	1.4
Floating	—		—	%	65,284		5.6	%	—		—	%	65,284		0.8	%	5.6	%	0.3
Total Pro Rata Non-Recourse Debt	417,755		4.7	%	207,962		3.5	%	48,272		4.2	%	673,989		8.1	%	4.3	%	1.3

Recourse Debt (b) (c)
Fixed – Senior unsecured notes:
Due April 1, 2024	500,000		4.6	%	—		—	%	—		—	%	500,000		6.0	%	4.6	%	0.3
Due July 19, 2024	—		—	%	552,500		2.3	%	—		—	%	552,500		6.7	%	2.3	%	0.6
Due February 1, 2025	450,000		4.0	%	—		—	%	—		—	%	450,000		5.4	%	4.0	%	1.1
Due April 9, 2026	—		—	%	552,500		2.3	%	—		—	%	552,500		6.7	%	2.3	%	2.3
Due October 1, 2026	350,000		4.3	%	—		—	%	—		—	%	350,000		4.2	%	4.3	%	2.8
Due April 15, 2027	—		—	%	552,500		2.1	%	—		—	%	552,500		6.7	%	2.1	%	3.3
Due April 15, 2028	—		—	%	552,500		1.4	%	—		—	%	552,500		6.7	%	1.4	%	4.3
Due July 15, 2029	325,000		3.9	%	—		—	%	—		—	%	325,000		3.9	%	3.9	%	5.5
Due September 28, 2029	—		—	%	165,750		3.4	%	—		—	%	165,750		2.0	%	3.4	%	5.7
Due June 1, 2030	—		—	%	580,125		1.0	%	—		—	%	580,125		7.0	%	1.0	%	6.4
Due February 1, 2031	500,000		2.4	%	—		—	%	—		—	%	500,000		6.0	%	2.4	%	7.1
Due February 1, 2032	350,000		2.5	%	—		—	%	—		—	%	350,000		4.2	%	2.5	%	8.1
Due September 28, 2032	—		—	%	221,000		3.7	%	—		—	%	221,000		2.7	%	3.7	%	8.8
Due April 1, 2033	425,000		2.3	%	—		—	%	—		—	%	425,000		5.1	%	2.3	%	9.3
Total Senior Unsecured Notes	2,900,000		3.4	%	3,176,875		2.0	%	—		—	%	6,076,875		73.3	%	2.7	%	4.3
Swapped to Fixed:
Unsecured term loans (due April 24, 2026) (e)	—		—	%	552,500		4.3	%	—		—	%	552,500		6.7	%	4.3	%	2.3
Floating:
Unsecured term loans (due February 14, 2028) (f)	—		—	%	237,575		4.8	%	343,306		6.0	%	580,881		7.0	%	5.5	%	4.1
Unsecured revolving credit facility (due February 14, 2029) (g)	—		—	%	386,750		4.6	%	17,035		0.9	%	403,785		4.9	%	4.5	%	5.1
Total Recourse Debt	2,900,000		3.4	%	4,353,700		2.7	%	360,341		5.8	%	7,614,041		91.9	%	3.1	%	4.2

Total Pro Rata Debt Outstanding	$	3,317,755	3.6	%	$	4,561,662	2.7	%	$	408,613	5.6	%	$	8,288,030	100.0	%	3.2	%	3.9

________

(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 $31.8 million and unamortized deferred financing costs totaling $21.5 million as of December 31, 2023.

(d)Includes $120.5 million of non-recourse mortgage debt which is swapped to fixed-rate through mortgage maturity.

(e)Interest rate swap expiration date is December 31, 2024.

(f)We incurred interest at SONIA or EURIBOR, plus 0.85% for both base rates, on our Unsecured term loans.

(g)Depending on the currency, we incurred interest on our Unsecured revolving credit facility at EURIBOR or TIBOR, plus 0.775% for all base rates. 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 $1.6 billion as of December 31, 2023.


						Investing for the Long Run® \| 16

W. P. Carey Inc.

Balance Sheets and Capitalization – Fourth Quarter 2023


Debt Maturity

Dollars in thousands. Pro rata. As of December 31, 2023.


	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
2024	51	$	39,564	4.0	%	$	286,862	$	289,300	3.5	%
2025	38	20,915		4.3	%	243,682		250,669		3.0	%
2026	18	16,480		5.0	%	90,320		103,722		1.3	%
2027	1	—		4.3	%	21,450		21,450		0.3	%
2031	1	1,096		6.0	%	—		2,659		—	%
2033	1	1,375		5.6	%	1,671		3,693		—	%
2039	1	732		5.3	%	—		2,496		—	%
Total Pro Rata Non-Recourse Debt	111	$	80,162	4.3	%	$	643,985	673,989		8.1	%

Recourse Debt
Fixed – Senior unsecured notes:
Due April 1, 2024 (USD)				4.6	%			500,000		6.0	%
Due July 19, 2024 (EUR)				2.3	%			552,500		6.7	%
Due February 1, 2025 (USD)				4.0	%			450,000		5.4	%
Due April 9, 2026 (EUR)				2.3	%			552,500		6.7	%
Due October 1, 2026 (USD)				4.3	%			350,000		4.2	%
Due April 15, 2027 (EUR)				2.1	%			552,500		6.7	%
Due April 15, 2028 (EUR)				1.4	%			552,500		6.7	%
Due July 15, 2029 (USD)				3.9	%			325,000		3.9	%
Due September 28, 2029 (EUR)				3.4	%			165,750		2.0	%
Due June 1, 2030 (EUR)				1.0	%			580,125		7.0	%
Due February 1, 2031 (USD)				2.4	%			500,000		6.0	%
Due February 1, 2032 (USD)				2.5	%			350,000		4.2	%
Due September 28, 2032 (EUR)				3.7	%			221,000		2.7	%
Due April 1, 2033 (USD)				2.3	%			425,000		5.1	%
Total Senior Unsecured Notes				2.7	%			6,076,875		73.3	%
Swapped to Fixed:
Unsecured term loans (due April 24, 2026) (d)				4.3	%			552,500		6.7	%
Floating:
Unsecured term loans (due February 14, 2028) (e)				5.5	%			580,881		7.0	%
Unsecured revolving credit facility (due February 14, 2029) (f)				4.5	%			403,785		4.9	%
Total Recourse Debt				3.1	%			7,614,041		91.9	%

Total Pro Rata Debt Outstanding				3.2	%			$	8,288,030	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 $31.8 million and unamortized deferred financing costs totaling $21.5 million as of December 31, 2023.

(d)Interest rate swap expiration date is December 31, 2024.

(e)We incurred interest at SONIA or EURIBOR, plus 0.85% for both base rates, on our Unsecured term loans.

(f)Depending on the currency, we incurred interest on our Unsecured revolving credit facility at EURIBOR or TIBOR, plus 0.775% for all base rates. 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 $1.6 billion as of December 31, 2023.


						Investing for the Long Run® \| 17

W. P. Carey Inc.

Balance Sheets and Capitalization – Fourth Quarter 2023


Senior Unsecured Notes

As of December 31, 2023.

Ratings

Issuer

Senior Unsecured Notes

Ratings Agency

Rating

Outlook

Rating

Moody's

Baa1

Stable

Baa1

Standard & Poor’s

BBB+

Stable

BBB+

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, 2023

Limitation on the incurrence of debt

"Total Debt" /
"Total Assets"

≤ 60%

42.3%

Limitation on the incurrence of secured debt

"Secured Debt" /
"Total Assets"

≤ 40%

3.1%

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

"Consolidated EBITDA" /
"Annual Debt Service Charge"

≥ 1.5x

4.7x

Maintenance of unencumbered asset value

"Unencumbered Assets" / "Total Unsecured Debt"

≥ 150%

225.8%


						Investing for the Long Run® \| 18

W. P. Carey Inc.

Real Estate

Fourth Quarter 2023


						Investing for the Long Run® \| 19

W. P. Carey Inc.

Real Estate – Fourth Quarter 2023


Investment Activity – Investment Volume

Dollars in thousands. Pro rata. For the year ended December 31, 2023.

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)

1Q23

Plaskolite, LLC (6 properties)

Various, United States

Industrial

Jan-23

64,861

Sale-leaseback

931,521

Siderforgerossi Group S.P.A. (8 properties) (b)

Various, Italy (5 properties) and Spain (3 properties)

Industrial

Mar-23

79,218

Sale-leaseback

1,256,209

Berry Global Inc. (2 properties)

Evansville, IN and Lawrence, KS

Industrial

Mar-23

20,000

Renovation

N/A

1Q23 Total

164,079

2,187,730

2Q23

Apotex Pharmaceutical Holdings (11 properties)

Various, Canada

Industrial, Warehouse

Apr-23

467,811

Sale-leaseback

2,268,417

ABC Technologies Holdings Inc. (9 properties) (c)

Various, United States (4 properties), Canada (3 properties), and Mexico (2 properties)

Industrial

Apr-23

97,952

Sale-leaseback

1,225,951

TWAS Holdings, LLC (9 properties)

Various, United States

Retail (Car Wash)

May-23

39,713

Sale-leaseback

33,433

Bear Holdings, LP (4 properties)

Various, United States

Education (Medical School)

Jun-23

139,092

Sale-leaseback

410,332

Storage Space (d)

Little Rock, AR

Self-Storage (Operating)

Jun-23

6,166

Operating

N/A

55,850

2Q23 Total

750,734

3,993,983

3Q23

Unchained Labs, LLC

Pleasanton, CA

Laboratory

Aug-23

13,905

Redevelopment

N/A

3 Men Movers

Houston, TX

Self-Storage (Operating)

Aug-23

13,120

Operating

N/A

78,372

3Q23 Total

27,025

78,372

4Q23

TWAS Holdings, LLC (2 properties)

Dothan, AL and Queensbury, NY

Retail (Car Wash)

Oct-23

8,657

Sale-leaseback

8,614

TWAS Holdings, LLC (7 properties)

Various, United States

Retail (Car Wash)

Nov-23

35,577

Sale-leaseback

24,488

Chattem, Inc.

Chattanooga, TN

Warehouse

Nov-23

25,864

Expansion

128,766

Fiber JVCo S.p.A (11 properties) (b)

Various, Italy (7 properties), Spain (3 properties), and Germany (1 property)

Industrial, Warehouse

Nov-23

157,095

Sale-leaseback

2,719,202

Tailored Brands, Inc.

Houston, TX

Warehouse

Dec-23

61,610

Sale-leaseback

834,400

Assured TN (2 properties)

Knoxville and Springfield, TN

Self-Storage (Operating)

Dec-23

15,580

Operating

N/A

121,575

Fabric8 Labs, Inc. (2 properties)

San Diego, CA

Industrial, Research & Development

Dec-23

13,324

Acquisition

43,530

CubeSmart

Bastrop, TX

Self-Storage (Operating)

Dec-23

12,443

Operating

N/A

73,870

EOS Fitness OPCO Holdings, LLC

Phoenix, AZ

Retail

Dec-23

13,791

Acquisition

40,000

4Q23 Total

343,941

3,994,445

Year-to-Date Total

1,285,779

10,254,530


						Investing for the Long Run® \| 20


		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 (e)	Las Vegas, NV	Retail	$	1,624	$	38,219	Q3 2024	$	231,387	$	261,887
Total					38,219

Year-to-Date Total Investment Volume					$	1,323,998

________

(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)Amount includes $3.1 million for an expansion at a property leased to this tenant that we already own.

(d)We also committed to fund an additional $3.6 million for an expansion at this facility, which is expected to be completed in the first quarter of 2024.

(e)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 Run® \| 21

W. P. Carey Inc.

Real Estate – Fourth Quarter 2023


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, 2023		Total Funded Through Dec. 31, 2023		Maximum Commitment / Gross Investment Amount
Tenant	Location										Remaining		Total
TWAS Holdings, LLC (4 properties) (c)	Various, US	Purchase Commitment	Retail (Car Wash)	Various	14,420	20	$	—	$	—	$	20,317	$	20,317
Terran Orbital Corporation	Irvine, CA	Redevelopment	Industrial	Q1 2024	94,195	10	4,719		7,974		7,126		15,100
Hexagon Composites ASA	Salisbury, NC	Expansion	Industrial	Q1 2024	113,000	15	3,317		10,994		2,806		13,800
Storage Space	Little Rock, AR	Expansion	Self-Storage (Operating)	Q1 2024	59,850	N/A	1,330		1,386		2,184		3,570
Danske Fragtmaend Ejendomme A/S (d)	Fredericia, Denmark	Renovation	Warehouse	Q1 2024	N/A	17	—		—		1,957		1,957
Unidentified	Atlanta, GA	Redevelopment	Warehouse	Q3 2024	213,834	N/A	204		630		17,022		17,652
Outfront Media, LLC (6 properties)	Various, NJ	Build-to-Suit	Specialty	Various	N/A	30	—		7,272		474		7,746
Expected Completion Date 2024 Total					495,299	16	9,570		28,256		51,886		80,142

ZF Friedrichshafen AG (e)	Washington, MI	Redevelopment	Research and Development	Q1 2025	81,200	20	1,735		4,044		43,546		47,823
Fraikin SAS (d)	Various, France	Renovation	Industrial	Q4 2025	N/A	18	—		1,155		6,469		7,624
Expected Completion Date 2025 Total					81,200	20	1,735		5,199		50,015		55,447

Capital Investments and Commitments Total					576,499	18	$	11,305	$	33,455	$	101,901	$	135,589

________

(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)Projects will be funded upon completion and are contingent on buildings being constructed according to our standards.

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

(e)We earn interest from this tenant, which is accrued through the construction period and deducted from the remaining commitment.


						Investing for the Long Run® \| 22

W. P. Carey Inc.

Real Estate – Fourth Quarter 2023


Investment Activity – Dispositions

Dollars in thousands. Pro rata. For the year ended December 31, 2023.

Tenant / Lease Guarantor

Property Location(s)

Gross Sale Price

Closing Date

Property Type(s)

Gross Square Footage

1Q23

Adler Modemarkte AG (a)

Haibach, Germany

11,151

Jan-23

Office

180,909

Vacant

Columbus, GA

8,000

Feb-23

Industrial

273,667

Vacant

Bloomington, MN

3,150

Mar-23

Office

221,800

Vacant

Chicago, IL

17,500

Mar-23

Office

178,490

Vacant

Virginia, MN

2,900

Mar-23

Office

62,973

1Q23 Total

42,701

917,839

2Q23

Vacant (a)

Doncaster, United Kingdom

945

May-23

Land

N/A

Vacant (formerly Pendragon PLC) (a)

West Bromwich, United Kingdom

3,285

May-23

Retail

23,236

Vacant (formerly Pendragon PLC) (a)

Cardiff, United Kingdom

1,266

Jun-23

Retail

14,894

2Q23 Total

5,496

38,130

3Q23

RLJ-McLarty-Landers Automotive Holdings, LLC

Lee's Summit, MO

10,800

Jul-23

Retail

33,167

Telefónica España Filiales, S.A.U (a)

Tres Cantos, Spain

87,888

Jul-23

Office

451,431

Marriott Corporation (3 properties)

Louisville, KY; Linthicum, MD; and Spokane, WA

48,740

Aug-23; Sep-23

Hotel (Operating)

259,439

Vacant

Pinconning, MI

630

Sep-23

Industrial

220,588

3Q23 Total

148,058

964,625

4Q23

Vacant (a)

Warsaw, Poland

30,360

Oct-23

Office

423,814

Vacant

Toledo, OH

1,500

Oct-23

Industrial

61,000

Marriott Corporation (5 properties)

Orlando, FL; Des Plaines, IL; Indianapolis, IN; and Albuquerque, NM

83,884

Oct-23; Nov-23

Hotel (Operating)

441,517

ALSO Actebis GmbH (a)

Soest, Germany

3,518

Oct-23

Office

284,680

Infineon Technologies AG (a)

Warstein, Germany

20,811

Oct-23

Office

120,900

J-M Eagle Inc. (4 properties) (b)

Perris, CA; Eugene, OR; West Jordan, UT; and Tacoma, WA

53,500

Nov-23

Warehouse; Office; Industrial

245,294

Danske Fragtmaend Ejendomme A/S (a)

Aarhus, Denmark

5,642

Nov-23

Office

37,179

Pendragon PLC (a)

Nottingham, United Kingdom

1,264

Dec-23

Retail

12,406

Perkin Elmer, Inc. (a)

Turku, Finland

42,580

Dec-23

Office

308,665

Level 3 Communications, Inc.

Lone Tree, CO

23,000

Dec-23

Office

161,218

4Q23 Total

266,059

2,096,673

Year-to-Date Total Dispositions

462,314

4,017,267

________

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

(b)Includes one office property sold for gross proceeds of $6.5 million.


						Investing for the Long Run® \| 23

W. P. Carey Inc.

Real Estate – Fourth Quarter 2023


Joint Ventures

Dollars in thousands. As of December 31, 2023.


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%	107,172		16,101		75,020		11,271
Johnson Self Storage	Self-storage operating	90.00%	—		N/A		—		N/A
Total Unconsolidated Joint Ventures			250,172		16,101		96,470		11,271

Consolidated Joint Ventures
COOP Ost SA (e)	Net lease	90.10%	53,576		7,016		48,272		6,321
State of Iowa Board of Regents	Net lease	90.00%	6,205		643		5,585		579
Fentonir Trading & Investments Limited (e)	Net lease	94.90%	—		8,736		—		8,291
McCoy-Rockford, Inc.	Net lease	90.00%	—		948		—		853
Total Consolidated Joint Ventures			59,781		17,343		53,857		16,044
Total Unconsolidated and Consolidated Joint Ventures			$	309,953	$	33,444	$	150,327	$	27,315

________

(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 $0.7 million and unamortized deferred financing costs totaling $0.4 million as of December 31, 2023.

(c)Excludes unamortized discount, net totaling $0.6 million and unamortized deferred financing costs totaling less than $0.1 million as of December 31, 2023.

(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 Run® \| 24

W. P. Carey Inc.

Real Estate – Fourth Quarter 2023


Top Ten Tenants

Dollars in thousands. Pro rata. As of December 31, 2023.


Tenant / Lease Guarantor	Description	Number of Properties	ABR		ABR %		Weighted-Average Lease Term (Years)
U-Haul Moving Partners Inc. and Mercury Partners, LP (a)	Net lease self-storage properties in the U.S.	78	$	38,751	2.9	%	0.2
State of Andalusia (b) (c)	Government office properties in Spain	70	32,539		2.4	%	11.0
Apotex Pharmaceutical Holdings Inc. (d)	Pharmaceutical R&D and manufacturing properties in Canada	11	31,528		2.3	%	19.2
Metro Cash & Carry Italia S.p.A. (b)	Business-to-business wholesale stores in Italy and Germany	20	30,352		2.3	%	4.5
Hellweg Die Profi-Baumärkte GmbH & Co. KG (b)	Do-it-yourself retail properties in Germany	35	30,182		2.2	%	13.2
Extra Space Storage, Inc.	Net lease self-storage properties in the U.S.	27	25,036		1.9	%	20.3
OBI Group (b)	Do-it-yourself retail properties in Poland	26	24,857		1.9	%	7.4
ABC Technologies Holdings Inc. (d) (e)	Automotive component manufacturing properties in North America	23	24,251		1.8	%	19.3
Fortenova Grupa d.d. (b)	Grocery stores and warehouses in Croatia	19	22,367		1.7	%	10.3
Nord Anglia Education Inc.	K-12 private schools in the U.S.	3	22,245		1.7	%	19.7
Total (e)		312	$	282,108	21.1	%	11.8

________

(a)Mercury Partners, LP (a related party of U-Haul Moving Partners Inc.) provided notice that it intends to exercise its option to repurchase the 78 properties it is leasing during the first quarter of 2024.

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

(c)In January 2024, we sold this portfolio of properties.

(d)ABR from these properties is denominated in U.S. dollars.

(e)Of the 23 properties leased to ABC Technologies Holdings Inc., nine are located in Canada, eight are located in the United States, and six are located in Mexico.

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


						Investing for the Long Run® \| 25

W. P. Carey Inc.

Real Estate – Fourth Quarter 2023


Diversification by Property Type

In thousands, except percentages. Pro rata. As of December 31, 2023.


	Total Net-Lease Portfolio
Property Type	ABR		ABR %		Square Footage (a)	Square Footage %
U.S.
Industrial	$	306,255	22.9	%	52,129	30.2	%
Warehouse	213,323		15.9	%	43,383	25.1	%
Retail (b)	75,618		5.7	%	3,672	2.1	%
Office	17,282		1.3	%	1,161	0.7	%
Self Storage (net lease)	63,786		4.7	%	5,810	3.4	%
Other (c)	97,771		7.3	%	4,909	2.8	%
U.S. Total	774,035		57.8	%	111,064	64.3	%

International
Industrial	126,001		9.4	%	16,833	9.7	%
Warehouse	140,458		10.5	%	21,341	12.4	%
Retail (b)	202,908		15.1	%	17,452	10.1	%
Office	54,785		4.1	%	4,041	2.3	%
Self Storage (net lease)	—		—	%	—	—	%
Other (c)	41,165		3.1	%	1,937	1.2	%
International Total	565,317		42.2	%	61,604	35.7	%

Total
Industrial	432,256		32.3	%	68,962	39.9	%
Warehouse	353,781		26.4	%	64,724	37.5	%
Retail (b)	278,526		20.8	%	21,124	12.2	%
Office	72,067		5.4	%	5,202	3.0	%
Self Storage (net lease)	63,786		4.7	%	5,810	3.4	%
Other (c)	138,936		10.4	%	6,846	4.0	%
Total (d)	$	1,339,352	100.0	%	172,668	100.0	%

________

(a)Includes square footage for vacant properties.

(b)Includes automotive dealerships.

(c)Includes ABR from tenants with the following property types: education facility, specialty, laboratory, hotel (net lease), research and development, and land.

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


						Investing for the Long Run® \| 26

W. P. Carey Inc.

Real Estate – Fourth Quarter 2023


Diversification by Tenant Industry

In thousands, except percentages. Pro rata. As of December 31, 2023.


	Total Net-Lease Portfolio
Industry Type	ABR		ABR %		Square Footage	Square Footage %
Retail Stores (a)	$	306,553	22.9	%	37,151	21.5	%
Consumer Services	127,118		9.5	%	8,288	4.8	%
Beverage and Food	110,599		8.3	%	15,759	9.1	%
Automotive	95,700		7.1	%	14,502	8.4	%
Grocery	83,227		6.2	%	7,406	4.3	%
Healthcare and Pharmaceuticals	72,079		5.4	%	6,656	3.9	%
Cargo Transportation	60,993		4.6	%	9,122	5.3	%
Containers, Packaging, and Glass	49,844		3.7	%	8,580	5.0	%
Capital Equipment	49,300		3.7	%	8,053	4.7	%
Durable Consumer Goods	47,361		3.5	%	10,240	5.9	%
Construction and Building	47,206		3.5	%	9,036	5.2	%
Sovereign and Public Finance	43,424		3.2	%	3,368	2.0	%
Hotel and Leisure	42,030		3.1	%	2,053	1.2	%
Chemicals, Plastics, and Rubber	32,779		2.5	%	5,929	3.4	%
Non-Durable Consumer Goods	32,680		2.4	%	6,805	3.9	%
Business Services	28,054		2.1	%	2,983	1.7	%
High Tech Industries	23,614		1.8	%	2,624	1.5	%
Metals	22,765		1.7	%	4,347	2.5	%
Telecommunications	14,030		1.1	%	1,500	0.9	%
Other (b)	49,996		3.7	%	8,266	4.8	%
Total (c)	$	1,339,352	100.0	%	172,668	100.0	%

________

(a)Includes automotive dealerships.

(b)Includes ABR from tenants in the following industries: wholesale, aerospace and defense, insurance, banking, environmental industries, oil and gas, media: advertising, printing, and publishing, consumer transportation, forest products and paper, and electricity. 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 Run® \| 27

W. P. Carey Inc.

Real Estate – Fourth Quarter 2023


Diversification by Geography

In thousands, except percentages. Pro rata. As of December 31, 2023.


	Total Net-Lease Portfolio
Region	ABR		ABR %		Square Footage (a)	Square Footage %
U.S.
South
Texas	$	86,296	6.4	%	11,274	6.5	%
Florida	42,710		3.2	%	3,816	2.2	%
Georgia	27,542		2.1	%	4,333	2.5	%
Tennessee	24,161		1.8	%	3,921	2.3	%
Alabama	22,270		1.7	%	3,353	1.9	%
Other (b)	16,288		1.2	%	2,402	1.4	%
Total South	219,267		16.4	%	29,099	16.8	%
Midwest
Illinois	57,057		4.3	%	10,164	5.9	%
Ohio	33,767		2.5	%	6,947	4.0	%
Indiana	29,727		2.2	%	5,137	3.0	%
Michigan	24,103		1.8	%	4,241	2.4	%
Wisconsin	16,624		1.2	%	3,074	1.8	%
Other (b)	52,296		3.9	%	7,713	4.5	%
Total Midwest	213,574		15.9	%	37,276	21.6	%
East
North Carolina	35,530		2.7	%	8,156	4.7	%
Pennsylvania	30,459		2.3	%	3,374	2.0	%
New York	20,556		1.5	%	2,262	1.3	%
South Carolina	19,208		1.4	%	4,952	2.9	%
Kentucky	18,130		1.4	%	2,983	1.7	%
Massachusetts	16,836		1.3	%	1,255	0.7	%
New Jersey	13,680		1.0	%	797	0.5	%
Virginia	13,623		1.0	%	1,761	1.0	%
Other (b)	24,145		1.8	%	3,799	2.2	%
Total East	192,167		14.4	%	29,339	17.0	%
West
California	60,741		4.5	%	5,889	3.4	%
Arizona	20,133		1.5	%	2,664	1.5	%
Utah	14,522		1.1	%	2,021	1.2	%
Other (b)	53,631		4.0	%	4,776	2.8	%
Total West	149,027		11.1	%	15,350	8.9	%
U.S. Total	774,035		57.8	%	111,064	64.3	%
International
Germany	73,065		5.5	%	6,535	3.8	%
Spain	68,077		5.1	%	5,862	3.4	%
The Netherlands	62,775		4.7	%	7,054	4.1	%
Poland	59,988		4.5	%	8,158	4.7	%
Canada (c)	50,861		3.8	%	5,087	2.9	%
United Kingdom	48,505		3.6	%	4,432	2.6	%
Italy	42,238		3.1	%	5,381	3.1	%
Denmark	25,053		1.9	%	3,002	1.7	%
Croatia	23,200		1.7	%	2,063	1.2	%
France	21,745		1.6	%	1,679	1.0	%
Lithuania	13,569		1.0	%	1,640	1.0	%
Other (d)	76,241		5.7	%	10,711	6.2	%
International Total	565,317		42.2	%	61,604	35.7	%
Total (e)	$	1,339,352	100.0	%	172,668	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 Minnesota, Iowa, Kansas, Missouri, 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 Colorado, Oregon, Nevada, Washington, Hawaii, Idaho, Montana, Wyoming and New Mexico.

(c)$46.8 million (92%) of ABR from properties in Canada is denominated in U.S. dollars, with the balance denominated in Canadian dollars.

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

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


						Investing for the Long Run® \| 28

W. P. Carey Inc.

Real Estate – Fourth Quarter 2023


Contractual Rent Increases

In thousands, except percentages. Pro rata. As of December 31, 2023.


	Total Net-Lease Portfolio
Rent Adjustment Measure	ABR		ABR %		Square Footage	Square Footage %
Uncapped CPI	$	510,136	38.1	%	51,838	30.0	%
Capped CPI	241,878		18.1	%	35,222	20.4	%
CPI-linked	752,014		56.2	%	87,060	50.4	%
Fixed	545,411		40.7	%	79,632	46.1	%
Other (a)	36,345		2.7	%	2,454	1.4	%
None	5,582		0.4	%	284	0.2	%
Vacant	—		—	%	3,238	1.9	%
Total (b)	$	1,339,352	100.0	%	172,668	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 Run® \| 29

W. P. Carey Inc.

Real Estate – Fourth Quarter 2023


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, 2022 to December 31, 2023. 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. For purposes of comparability, ABR is presented on a constant currency basis using exchange rates as of December 31, 2023.


	ABR
	As of
	Dec. 31, 2023		Dec. 31, 2022		Increase		% Increase
Property Type
Industrial	$	344,948	$	333,861	$	11,087	3.3	%
Warehouse	333,107		321,553		11,554		3.6	%
Retail (a)	262,288		248,062		14,226		5.7	%
Office	71,235		67,485		3,750		5.6	%
Self Storage (net lease)	63,786		61,708		2,078		3.4	%
Other (b)	122,353		117,769		4,584		3.9	%
Total	$	1,197,717	$	1,150,438	$	47,279	4.1	%

Rent Adjustment Measure
Uncapped CPI	$	490,405	$	460,126	$	30,279	6.6	%
Capped CPI	221,950		215,848		6,102		2.8	%
CPI-linked	712,355		675,974		36,381		5.4	%
Fixed	444,746		435,952		8,794		2.0	%
Other (c)	35,820		33,716		2,104		6.2	%
None	4,796		4,796		—		—	%
Total	$	1,197,717	$	1,150,438	$	47,279	4.1	%

Geography
U.S.	$	697,243	$	678,683	$	18,560	2.7	%
Europe	466,032		437,994		28,038		6.4	%
Other International (d)	34,442		33,761		681		2.0	%
Total	$	1,197,717	$	1,150,438	$	47,279	4.1	%

Same-Store Portfolio Summary
Number of properties	1,242
Square footage (in thousands)	152,368


						Investing for the Long Run® \| 30

W. P. Carey Inc.

Real Estate – Fourth Quarter 2023

Comprehensive Same-Store Growth

Same-store portfolio includes leased properties that were continuously owned and in place during the quarter ended December 31, 2022 through December 31, 2023 (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. 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, 2023. 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, 2023		Dec. 31, 2022		Increase		% Increase
Property Type
Industrial	$	89,223	$	86,041	$	3,182	3.7	%
Warehouse	83,473		81,769		1,704		2.1	%
Retail (a)	65,182		63,211		1,971		3.1	%
Office	17,409		16,236		1,173		7.2	%
Self Storage (net lease)	15,899		15,401		498		3.2	%
Other (b)	28,938		30,685		(1,747)		(5.7)	%
Total	$	300,124	$	293,343	$	6,781	2.3	%

Rent Adjustment Measure
Uncapped CPI	$	122,679	$	115,427	$	7,252	6.3	%
Capped CPI	54,880		53,503		1,377		2.6	%
CPI-linked	177,559		168,930		8,629		5.1	%
Fixed	112,391		114,213		(1,822)		(1.6)	%
Other (c)	8,849		8,609		240		2.8	%
None	1,325		1,591		(266)		(16.7)	%
Total	$	300,124	$	293,343	$	6,781	2.3	%

Geography
U.S.	$	178,524	$	175,540	$	2,984	1.7	%
Europe	113,095		109,546		3,549		3.2	%
Other International (d)	8,505		8,257		248		3.0	%
Total	$	300,124	$	293,343	$	6,781	2.3	%

Same-Store Portfolio Summary
Number of properties	1,306
Square footage (in thousands)	158,321


						Investing for the Long Run® \| 31

W. P. Carey Inc.

Real Estate – Fourth Quarter 2023

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


	Three Months Ended
	Dec. 31, 2023		Dec. 31, 2022
Consolidated Lease Revenues
Total lease revenues – as reported	$	336,757	$	347,636
Income from finance leases and loans receivable	31,532		17,472
Less: Reimbursable tenant costs – as reported	(18,942)		(21,084)
Less: Income from secured loans receivable	(475)		(1,191)
	348,872		342,833

Adjustments for Pro Rata Ownership of Real Estate Joint Ventures:
Add: Pro rata share of adjustments from equity method investments	4,042		5,448
Less: Pro rata share of adjustments for noncontrolling interests	(225)		(395)
	3,817		5,053

Adjustments for Pro Rata Non-Cash Items:
Less: Straight-line and other leasing and financing adjustments	(19,071)		(14,766)
Add: Above- and below-market rent intangible lease amortization	6,644		8,652
Less: Adjustments for pro rata ownership	(1,617)		(2,464)
	(14,044)		(8,578)

Adjustment to normalize for (i) properties not continuously owned since October 1, 2022 and (ii) constant currency presentation for prior year quarter (e)	(38,521)		(45,965)

Same-Store Pro Rata Rental Income	$	300,124	$	293,343

________

(a)Includes automotive dealerships.

(b)Includes ABR or same-store pro rata rental income from tenants with the following property types: education facility, specialty, laboratory, hotel (net lease), research and development, and land.

(c)Represents leases attributable to percentage rent.

(d)Includes assets in Canada, Mexico, Mauritius 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, 2022 through December 31, 2023. In addition, for the three months ended December 31, 2022, an adjustment is made to reflect average exchange rates for the three months ended December 31, 2023 for purposes of comparability, since same-store pro rata rental income is presented on a constant currency basis.


						Investing for the Long Run® \| 32

W. P. Carey Inc.

Real Estate – Fourth Quarter 2023


Leasing Activity

For the three months ended December 31, 2023, 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	1,511,964	7	$	10,069		$	10,552	104.8	%	$	3,200	$	1,310	6.9 years
Warehouse	2,348,738	5	12,263			11,535		94.1	%	3,812		50		7.1 years
Retail	24,490	1	222			222		100.0	%	—		—		5.0 years
Office	—	—	—			—		—	%	—		—		N/A
Self Storage (net lease)	—	—	—			—		—	%	—		—		N/A
Other	—	—	—			—		—	%	—		—		N/A
Total / Weighted Average (c)	3,885,192	13	$	22,554		$	22,309	98.9	%	$	7,012	$	1,360	7.2 years

Q4 Summary
Prior Lease ABR (% of Total Portfolio)			1.7		%


New Leases					Expected Tenant Improvements ($000s)		Leasing Commissions ($000s)
			ABR
Property Type	Square Feet	Number of Leases	New Lease ($000s) (b)						New Lease Term
Industrial	210,428	3	$	1,242	$	1,106	$	90	10.0 years
Warehouse	—	—	—		—		—		N/A
Retail	—	—	—		—		—		N/A
Office	—	—	—		—		—		N/A
Self Storage (net lease)	—	—	—		—		—		N/A
Other	30,000	1	774		3,860		494		10.7 years
Total / Weighted Average (d)	240,428	4	$	2,016	$	4,966	$	584	10.3 years

_______

(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.

(d)Weighted average refers to the new lease term.


						Investing for the Long Run® \| 33

W. P. Carey Inc.

Real Estate – Fourth Quarter 2023


Lease Expirations

Dollars and square footage in thousands. Pro rata. As of December 31, 2023.


Year of Lease Expiration (a)	Number of Leases Expiring	Number of Tenants with Leases Expiring	ABR		ABR %		Square Footage	Square Footage %
2024 (b)	29	23	$	60,324	4.5	%	7,886	4.6	%
2025	36	17	45,090		3.4	%	5,767	3.3	%
2026	37	28	59,834		4.5	%	8,502	4.9	%
2027	43	26	62,571		4.7	%	7,149	4.1	%
2028	41	25	57,892		4.3	%	4,669	2.7	%
2029	56	29	75,809		5.7	%	9,218	5.3	%
2030	29	26	36,051		2.7	%	3,941	2.3	%
2031	35	19	66,987		5.0	%	8,345	4.8	%
2032	38	19	41,613		3.1	%	5,799	3.4	%
2033	30	23	76,477		5.7	%	10,797	6.3	%
2034 (c)	50	19	94,644		7.1	%	9,188	5.3	%
2035	19	16	35,500		2.6	%	5,885	3.4	%
2036	45	19	71,427		5.3	%	10,958	6.4	%
2037	26	13	61,555		4.6	%	6,441	3.7	%
Thereafter (>2037)	259	108	493,578		36.8	%	64,885	37.6	%
Vacant	—	—	—		—	%	3,238	1.9	%
Total (d)	773		$	1,339,352	100.0	%	172,668	100.0	%

________

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

(b)Includes ABR of $38.8 million from Mercury Partners, LP (a related party of U-Haul Moving Partners, Inc.) that provided notice of its intention to exercise its option to repurchase the 78 properties it is leasing during the first quarter of 2024.

(c)Includes ABR of $32.5 million from a portfolio of 70 properties leased to State of Andalusia that was sold in January 2024.

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


						Investing for the Long Run® \| 34

W. P. Carey Inc.

Real Estate – Fourth Quarter 2023


Self Storage Operating Properties Portfolio

Square footage in thousands. Pro rata. As of December 31, 2023.


State / District	Number of Properties	Number of Units	Square Footage	Square Footage %		Period End Occupancy
Florida	22	15,793	1,844	28.4	%	91.5	%
Texas	14	8,128	995	15.3	%	89.1	%
California	10	6,585	860	13.2	%	93.1	%
Illinois	10	4,826	665	10.3	%	89.3	%
South Carolina	6	3,710	377	5.8	%	87.6	%
Georgia	5	2,057	250	3.9	%	89.0	%
North Carolina	4	2,827	301	4.6	%	88.7	%
Nevada	3	2,420	243	3.7	%	91.0	%
Delaware	3	1,678	241	3.7	%	93.0	%
Hawaii	2	953	95	1.5	%	91.0	%
Tennessee	2	888	122	1.9	%	84.2	%
Washington, DC	1	880	67	1.0	%	94.1	%
New York	1	792	61	0.9	%	81.2	%
Kentucky	1	764	121	1.9	%	93.8	%
Arkansas	1	587	56	0.9	%	90.5	%
Louisiana	1	541	59	0.9	%	76.2	%
Massachusetts	1	482	58	0.9	%	91.6	%
Oregon	1	442	40	0.6	%	97.5	%
Missouri	1	328	41	0.6	%	73.5	%
Total (a)	89	54,681	6,496	100.0	%	90.3	%

________

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


						Investing for the Long Run® \| 35

W. P. Carey Inc.

Appendix

Fourth Quarter 2023


						Investing for the Long Run® \| 36

W. P. Carey Inc.

Appendix – Fourth Quarter 2023


Normalized Pro Rata Cash NOI

In thousands. From real estate.


	Three Months Ended Dec. 31, 2023
Consolidated Lease Revenues
Total lease revenues – as reported	$	336,757
Income from finance leases and loans receivable	31,532
Less: Income from secured loans receivable	(475)

Less: Consolidated Reimbursable and Non-Reimbursable Property Expenses
Reimbursable property expenses – as reported	18,942
Non-reimbursable property expenses – as reported	13,287
	335,585

Plus: NOI from Operating Properties
Self-storage revenues	23,194
Self-storage expenses	(8,093)
	15,101

Hotel revenues	12,865
Hotel expenses	(10,835)
	2,030

Student housing and other revenues	3,418
Student housing and other expenses	(1,475)
	1,943

	354,659

Adjustments for Pro Rata Ownership of Real Estate Joint Ventures:
Add: Pro rata share of NOI from equity method investments (a)	3,854
Less: Pro rata share of NOI attributable to noncontrolling interests	(236)
	3,618

	358,277

Adjustments for Pro Rata Non-Cash Items:
Less: Straight-line and other leasing and financing adjustments	(19,071)
Add: Above- and below-market rent intangible lease amortization	6,644
Add: Other non-cash items	427
	(12,000)

Pro Rata Cash NOI (b)	346,277

Adjustment to normalize for intra-period acquisition volume and dispositions (c)	3,065

Normalized Pro Rata Cash NOI (b)	$	349,342


						Investing for the Long Run® \| 37

W. P. Carey Inc.

Appendix – Fourth Quarter 2023

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, 2023
Net Income from Real Estate Attributable to W. P. Carey
Net income from Real Estate attributable to W. P. Carey – as reported	$	142,753
Adjustments for Consolidated Operating Expenses
Add: Operating expenses – as reported	282,939
Less: Property expenses, excluding reimbursable tenant costs – as reported	(13,287)
Less: Operating property expenses – as reported	(20,403)
	249,249

Adjustments for Other Consolidated Revenues and Expenses:
Less: Other lease-related income – as reported	(2,610)
Less: Reimbursable property expenses – as reported	(18,942)
Add: Other income and (expenses)	(28,980)
Add: Provision for income taxes	13,714
	(36,818)

Other Adjustments:
Less: Straight-line and other leasing and financing adjustments	(19,071)
Add: Above- and below-market rent intangible lease amortization	6,644
Add: Adjustments for pro rata ownership	3,593
Less: Income from secured loans receivable	(475)
Adjustment to normalize for intra-period acquisition volume and dispositions (c)	3,065
Add: Property expenses, excluding reimbursable tenant costs, non-cash	402
	(5,842)

Normalized Pro Rata Cash NOI (b)	$	349,342

________

(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, 2023, 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, 2023, the adjustment eliminates our pro rata share of cash NOI for the period.


						Investing for the Long Run® \| 38

W. P. Carey Inc.

Appendix – Fourth Quarter 2023


Adjusted EBITDA, Consolidated – Last Five Quarters

In thousands.


	Three Months Ended
	Dec. 31, 2023		Sep. 30, 2023		Jun. 30, 2023		Mar. 31, 2023		Dec. 31, 2022
Net income	$	144,244	$	124,999	$	144,580	$	294,441	$	209,503

Adjustments to Derive Adjusted EBITDA (a)
Gain on sale of real estate, net (b)	(134,026)		(2,401)		(1,808)		(177,749)		(5,845)
Depreciation and amortization	129,484		144,771		143,548		156,409		140,749
Interest expense	72,194		76,974		75,488		67,196		67,668
Impairment charges — real estate (c)	71,238		15,173		—		—		12,734
Other (gains) and losses (d)	45,777		(2,859)		1,366		(8,100)		(97,059)
Straight-line and other leasing and financing adjustments (e)	(19,071)		(18,662)		(19,086)		(15,050)		(14,766)
Provision for income taxes	13,714		5,090		10,129		15,119		6,126
Stock-based compensation expense	8,693		9,050		8,995		7,766		9,739
Above- and below-market rent intangible lease amortization	6,644		7,835		8,824		10,861		8,652
Merger and other expenses (f)	(641)		4,152		1,419		24		2,058
Other amortization and non-cash charges	21		457		411		404		399
	194,027		239,580		229,286		56,880		130,455

Adjustments for Pro Rata Ownership
Real Estate Joint Ventures:
Add: Pro rata share of adjustments for equity method investments	2,664		2,656		3,013		2,050		2,076
Less: Pro rata share of adjustments for amounts attributable to noncontrolling interests	(267)		(400)		(347)		(443)		(511)
	2,397		2,256		2,666		1,607		1,565

Adjusted EBITDA (g)	$	340,668	$	366,835	$	376,532	$	352,928	$	341,523

________

(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)Amount for the three months ended December 31, 2023 includes a gain on sale of real estate of $59.1 million recognized upon entering into an agreement to sell our portfolio of 70 office properties located in Spain to the tenant occupying the properties and the reclassification of the investment to net investments in sales-type leases. Amount for the three months ended March 31, 2023 includes a gain on sale of real estate of $176.2 million recognized upon receiving notice of the exercise of a purchase option for a portfolio of 78 net-lease self-storage properties and the reclassification of the investment to net investments in sales-type leases.

(c)Amount for the three months ended December 31, 2023 includes an impairment charge of $47.3 million recognized on the 59 properties contributed to NLOP in connection with the Spin-Off.

(d)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 finance leases. Amounts from period to period will not be comparable due to unpredictable fluctuations in these gains and losses.

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

(f)Amount for the three months ended September 30, 2023 is primarily comprised of costs incurred in connection with the Spin-Off.

(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.


						Investing for the Long Run® \| 39

W. P. Carey Inc.

Appendix – Fourth Quarter 2023


Adjusted EBITDA, Real Estate – Last Five Quarters

In thousands.


	Three Months Ended
	Dec. 31, 2023		Sep. 30, 2023		Jun. 30, 2023		Mar. 31, 2023		Dec. 31, 2022
Net income from Real Estate	$	142,703	$	124,126	$	144,646	$	293,292	$	210,107

Adjustments to Derive Adjusted EBITDA (a)
Gain on sale of real estate, net (b)	(134,026)		(2,401)		(1,808)		(177,749)		(5,845)
Depreciation and amortization	129,484		144,771		143,548		156,409		140,749
Interest expense	72,194		76,974		75,488		67,196		67,668
Impairment charges — real estate (c)	71,238		15,173		—		—		12,734
Other (gains) and losses (d)	45,303		(2,180)		890		(7,586)		(96,846)
Straight-line and other leasing and financing adjustments (e)	(19,071)		(18,662)		(19,086)		(15,050)		(14,766)
Provision for income taxes	13,714		5,090		10,236		15,402		4,908
Stock-based compensation expense	8,693		9,050		8,995		7,766		9,739
Above- and below-market rent intangible lease amortization	6,644		7,835		8,824		10,861		8,652
Merger and other expenses (f)	(641)		4,152		1,419		24		2,058
Other amortization and non-cash charges	21		457		411		404		399
	193,553		240,259		228,917		57,677		129,450

Adjustments for Pro Rata Ownership
Real Estate Joint Ventures:
Add: Pro rata share of adjustments for equity method investments	2,664		2,656		3,013		2,050		2,076
Less: Pro rata share of adjustments for amounts attributable to noncontrolling interests	(267)		(400)		(347)		(443)		(511)
	2,397		2,256		2,666		1,607		1,565

Adjusted EBITDA – Real Estate (g)	$	338,653	$	366,641	$	376,229	$	352,576	$	341,122

________

(c)Amount for the three months ended December 31, 2023 includes an impairment charge of $47.3 million recognized on the 59 properties contributed to NLOP in connection with the Spin-Off.

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

(f)Amount for the three months ended September 30, 2023 is primarily comprised of costs incurred in connection with the Spin-Off.

(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 2023


Adjusted EBITDA, Investment Management – Last Five Quarters

In thousands.


	Three Months Ended
	Dec. 31, 2023		Sep. 30, 2023		Jun. 30, 2023		Mar. 31, 2023		Dec. 31, 2022
Net income (loss) from Investment Management	$	1,541	$	873	$	(66)	$	1,149	$	(604)

Adjustments to Derive Adjusted EBITDA (a)
Other (gains) and losses (b)	474		(679)		476		(514)		(213)
(Benefit from) provision for income taxes	—		—		(107)		(283)		1,218
	474		(679)		369		(797)		1,005

Adjusted EBITDA – Investment Management (c)	$	2,015	$	194	$	303	$	352	$	401

________

(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)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 2023


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 the sale of certain real estate, 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 on the same basis.

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 finance 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, merger and acquisition expenses, and spin-off 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 2023

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, 2023 is equal to $273.1 million, comprised of interest expense calculated in accordance with GAAP ($291.9 million), plus capitalized interest ($0.6 million) and other non-cash amortization expense ($0.1 million), less amortization of deferred financing costs and debt premiums/discounts ($20.5 million), adjusted for pro rata ownership ($1.3 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 certain investments 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, 2023. 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.


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W. P. Carey (WPC) 8-KW. P. Carey Announces Fourth Quarter and Full Year 2023 Financial Results