W. P. Carey (WPC) Citi’s 30th Annual Global Property CEO Conference 2025 summary

Opening remarks and company overview

• Diversified net lease REIT with a focus on industrial and retail properties across the U.S. and Europe, with about two-thirds of the portfolio in industrial assets and two-thirds in North America.

• Over $20 billion in assets and a 50-year operating history.

• Leadership team includes CEO, head of strategy and capital markets, and head of institutional investor relations.

Investment outlook and growth strategy

• 2024 is seen as a transitional year, with a reset baseline after office asset sales and other dilutive events.

• Guidance set for mid-3% earnings growth, with total shareholder return expected in the high single-digit to low double-digit range.

• Conservative deal volume and credit loss assumptions underpin guidance.

• No need to raise equity in 2025 to fund new investments, relying on accretive non-core asset sales.

Asset sales and capital recycling

• Major focus on selling self-storage assets, expected to generate $50–$55 million NOI and $800–$850 million in gross proceeds, likely executed in the second half of 2024 and possibly into 2025.

• Self-storage assets are branded and managed by Extra Space and CubeSmart, with strong buyer interest anticipated.

• Additional asset sales include student housing ($7–$8 million NOI) and hotels ($10 million NOI), with hotel assets in high-value locations and redevelopment potential.

• Other capital sources include a stake in Lineage (valued just under $300 million) and a $260 million construction loan in Las Vegas, both expected to be reinvested at higher yields.

• Liquidity supported by $250 million free cash flow and a largely undrawn $2 billion credit facility.