W. P. Carey Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.
For Q3 2024, total revenues decreased to $397.4 million from $448.6 million in Q3 2023, primarily due to lower lease revenues and operating property revenues. Lease revenues for Q3 2024 were $334.0 million, down from $369.2 million in the prior year. Income from finance leases and loans receivable also fell to $15.7 million from $27.6 million. Operating property revenues decreased to $37.3 million from $49.2 million. The decline in revenues was attributed to the impact of the company's Spin-Off and the Office Sale Program, which involved the sale of 85 office properties.
Net income for Q3 2024 was $111.7 million, a decrease from $125.0 million in Q3 2023. For the nine months ended September 30, 2024, net income was $413.8 million, down from $564.0 million in the same period last year. The decrease in net income was influenced by a non-cash unrealized loss on the investment in shares of Lineage and lower gains on the sale of real estate.
Adjusted Funds From Operations (AFFO) for Q3 2024 were $259.3 million, compared to $284.4 million in Q3 2023. For the nine months ended September 30, 2024, AFFO decreased to $768.3 million from $856.9 million in the prior year. The decline in AFFO was primarily due to the Spin-Off and the Office Sale Program.
Strategically, W. P. Carey completed a Spin-Off of 59 office properties into a separate publicly traded REIT on November 1, 2023, and disposed of 85 office properties as part of its Office Sale Program. The company also made real estate asset acquisitions totaling $190.7 million during the nine months ended September 30, 2024, including properties in the UK, Italy, and Canada. Additionally, the company reclassified several self-storage properties from operating properties to net leases, recognizing lease revenues from these properties starting September 1, 2024.
As of September 30, 2024, total stockholders’ equity was $8.6 billion, down from $8.7 billion at the end of 2023. The company reported cash and cash equivalents of $818.2 million, an increase from $633.9 million at the end of 2023. Total debt decreased to $8.0 billion from $8.1 billion, reflecting the company's ongoing efforts to manage its capital structure effectively.
Overall, W. P. Carey continues to focus on enhancing its portfolio quality through strategic acquisitions and dispositions while navigating the impacts of market conditions and its recent Spin-Off.
About W. P. Carey Inc.
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