WPC Earnings Prediction
The chart below shows how WPC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, WPC sees a -0.77% change in stock price 10 days leading up to the earnings, and a -0.61% change 10 days following the report. On the earnings day itself, the stock moves by -0.66%. This data can give you a slight idea of what to expect for the next quarter's release.
WPC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
397.38M
-11.41%
1.98%
Gross Margin
88.76%
-2.62%
-3.46%
Operating Margin
47.19%
0.19%
5.85%
Net Margin
28.10%
0.83%
-23.35%
EPS
0.51
-12.07%
-21.54%
No Data Available
WPC Earnings Analysis
W.P. Carey Inc. (REIT) Corporation (WPC.N) Earnings Conference Call
Positive
Investment Volume Surge: 1. Strong Investment Volume: W. P. Carey completed $167 million of new investments in Q3 2024, bringing the year-to-date total to approximately $1 billion, with a confident outlook to achieve the $1.5 billion midpoint of their full-year investment volume guidance.
Strong Cash Reserves: 2. Robust Cash Position: The company ended Q3 2024 with over $800 million in cash and a total liquidity of approximately $2.6 billion, ensuring they can fund their investment pipeline without needing to raise equity until 2026.
Same-Store Rent Growth: 3. Positive Same-Store Rent Growth: Contractual same-store rent growth for Q3 2024 was 2.8% year-over-year, with expectations to maintain this growth rate for the full year.
Strong Property Demand: 4. High Occupancy Rates: W. P. Carey reported a high occupancy rate of 98.8% across their portfolio, reflecting strong demand for their properties.
Asset Disposition Strategy: 5. Increased Disposition Guidance: The company expects to complete dispositions totaling between $1.3 billion and $1.4 billion for the full year, slightly raising the bottom end of the range, indicating effective asset management and strategic portfolio adjustments.
Negative
Same-Store Rent Decline: 1. Declining Same-Store Rent Growth: Comprehensive same-store rent growth was only 20 basis points year-over-year, indicating a significant slowdown compared to historical averages, which typically hover around 100 basis points lower than contractual growth.
Rising Interest Expenses: 2. Increased Interest Expense: Interest expense rose to $72.5 million for the third quarter, reflecting the full-quarter impact of $1.1 billion in refinanced bonds, which could pressure future profitability.
Decline in Operating Property NOI: 3. Negative Operating Property NOI: Operating property NOI decreased by $1.1 million from the previous quarter, primarily due to the conversion of self-storage properties to net leases and the sale of a Marriott hotel, indicating challenges in maintaining income from operating assets.
Potential Rent Loss Forecast: 4. Potential Rent Loss from Credit Events: The company anticipates a potential rent loss of approximately 100 basis points in 2025 due to credit issues, excluding the uncertain impact from True Value's bankruptcy proceedings, which could further strain earnings.
Declining Non-Operating Income: 5. Lower Non-Operating Income Expectations: Non-operating income is expected to decrease to around $10 million in the fourth quarter, reflecting lower interest income as rates decline and cash is deployed into new investments, which could limit overall revenue growth.
WPC FAQs
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WPC Earning Call Sentiment
W. P. Carey Inc. (WPC) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
WPC.N
-0.65%Positive
The earnings call summary presents a mixed picture. The financial performance shows some positive elements, such as increased AFFO and liquidity, but also has negatives like lowered guidance and reduced NOI. The Q&A reveals uncertainty around future outcomes, especially with True Value and credit reserves, which could concern investors. Despite some positive aspects, such as strong AFFO and re-leasing spreads, the lowered guidance and unclear responses in the Q&A suggest a neutral sentiment. Without a market cap, the prediction remains neutral, as the mixed signals balance out potential stock movements.
