Why Commercial Real Estate Company W.P. Carey Shares Are Down Today
Portfolio Pulse from Lekha Gupta
W.P. Carey Inc (NYSE:WPC) shares fell after reporting Q4 FY23 earnings with a revenue increase of 2.4% Y/Y to $412.4 million, missing consensus. Lease revenues decreased due to reclassifications and a spin-off, and AFFO per share dropped 7.8% Y/Y to $1.19, below expectations. The company announced a FY24 AFFO per share outlook of $4.65-$4.75 and plans for increased investment volume. Despite the downturn, CEO Jason Fox remains optimistic about 2024.
February 09, 2024 | 5:37 pm
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NEGATIVE IMPACT
W.P. Carey Inc reported lower-than-expected Q4 FY23 earnings, with a slight revenue increase but a significant drop in AFFO per share. The company remains optimistic for FY24, expecting an AFFO per share of $4.65-$4.75.
The immediate negative reaction in W.P. Carey's stock price is likely due to the earnings miss and the decrease in AFFO per share, which are critical metrics for investors in REITs. However, the company's optimistic outlook for FY24 and strong liquidity position may mitigate some concerns over the long term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100