WP Carey Q2 revenue beats estimates on higher leases; AFFO outlook raised
WPC•What drove the quarter
The company said higher lease revenues and income from finance leases and loans receivable were driven by net investment activity.
Net income rose mainly because of a $41.6 million mark-to-market gain on shares of Lineage and higher gains from remeasurement of foreign debt.
WP Carey reported contractual same-store rent growth of 2.6% year over year on a constant-currency basis.
Key figures and analyst view
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Beat | $461.10 million | $447.77 million (8 analysts) |
| Q2 EPS | $0.82 | ||
| Q2 Net Income | $185.40 million | ||
| Q2 AFFO | $305.40 million | ||
| Q2 AFFO Per Share | $1.34 |
The current average analyst rating on the shares is hold, with 5 strong buy or buy ratings, 8 hold ratings and 1 sell or strong sell rating. The median 12-month price target for W.P. Carey Inc. is $78.00, about 2.3% above its July 27 closing price of $76.21. The stock recently traded at 26 times expected next-12-month earnings, versus a P/E of 25 three months ago.
