Q2 2024 WP Carey Inc Earnings Call Transcript
Key Points
- AFFO per share increased to $1.17 for the second quarter, with expectations for further increases in the second half of the year.
- Successfully completed the office sale program, generating total gross proceeds just under $800 million.
- Raised over $1 billion of new unsecured debt through bond issuances in both Europe and the US at attractive yields.
- Liquidity position is at an all-time high with an almost entirely undrawn $2 billion revolver and over $1 billion in cash.
- Achieved favorable rent escalations with about 60% of the investment volume tied to inflation and 40% with fixed rent bumps averaging approximately 3% annually.
- Lowered expectations for full-year investment volume, impacting full-year AFFO guidance.
- Two significant deals totaling over $300 million fell out of the near-term pipeline due to unresolved issues during diligence.
- Comprehensive same-store rent growth was negative 40 basis points year-over-year.
- Operating self-storage NOI declined 4.2% through the first six months and is expected to decline by 5% to 6% for the full year.
- Increased competition in the US and Europe is putting downward pressure on cap rates.
Hello. And welcome to W. P. Carey's second-quarter 2024 earnings conference call. My name is Diego. And I will be your operator today. (Operator Instructions) Please note that today's event is being recorded. (Operator Instructions)
I will now turn today's program over to Peter Sands, Head of Investor Relations. Mr. Sands, please go ahead.
Good morning, everyone, and thank you for joining us this morning for our 2024 second quarter earnings call.
Before we begin, I would like to remind everyone that some of the statements made on this call are not historic facts and may be deemed forward-looking statements. Factors that could cause actual results to differ materially from W. P. Carey's expectations are provided in our SEC filings. An online replay of this conference call will be made available in the Investor Relations section of our website at wpcarey.com, where it will be archived for approximately one year, and where you can also find copies of our investor
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