W.P. Carey Inc. Reports 2020 Third Quarter Results

October 30, 2020 | SEC

W.P. Carey Inc. (NYSE: WPC) the sponsor of several nontraded REIT programs, announced its third quarter results on October 30, 2020. Among the results reported were the overall collection rates of 98% for 2020 third quarter rent due and 99% for October rent due. 

The management commentary: “Our third quarter results reflect the consistently high rent collections our portfolio has generated since the start of the pandemic, including a 98% collection rate for the period. I’m also pleased to say that after a pause in deal flow due to the pandemic we’ve resumed external investment activity and, given increased visibility into our pipeline, reinstated AFFO guidance” said Jason Fox, Chief Executive Officer of W. P. Carey. “The strength of our collections and balance sheet ensure we’re well positioned amid renewed uncertainty over the course of the pandemic. And with a robust pipeline, ample liquidity and having locked in a cost of capital that supports accretive investments, we’re equally well positioned to execute on the growing number of transaction opportunities before us.”

Investment Management revenues, including reimbursable costs, for the 2020 third quarter were $5.0 million, down 67.3% from $15.3 million for the 2019 third quarter, due primarily to lower asset management revenues and reimbursable costs resulting from the management internalization by Carey Watermark Investors Incorporated (CWI 1) and Carey Watermark Investors 2 Incorporated (CWI 2). Those two nontraded REITs merged to form Watermark Lodging Trust, Inc. (WLT) on April 13, 2020. After giving effect to the Merger, CWI 1 became a wholly owned subsidiary of CWI 2 and CWI 2 changed its name to WLT. Immediately after the completion of the Merger, the former stockholders of CWI 1 owned approximately 60%, and the former stockholders of CWI 2 owned approximately 40%, of the outstanding common stock of WLT. Concurrently with the closing of the Merger, CWI 2 completed an internalization transaction through which it became self-managed.

W.P. Carey, Inc. sponsors Corporate Property Associates 18 – Global Incorporated, a nontraded REIT with full or partial ownership interests in 47 properties as of June 30, 2020. On October 31, 2018, Corporate Property Associates 17 – Global Incorporated merged with W.P. Carey.

Source:  SEC