W P Carey Inc

W. P. Carey announced Thursday that it will revise its full-year 2026 financial guidance when it reports third-quarter results, citing an improved outlook for tenant credit losses and strong investment volume. The net lease REIT said it has received August rent from Hellweg and expects to collect additional rent from the client during the second half of the year, and it expects to recognize the benefit of bank guarantees covering up to three months of lease-related damages tied to Hellweg. W. P. Carey also said it sees investment volume totaling over $1.9B for 2026, with roughly $1.4B completed year to date. CEO Jason Fox said the progress on Hellweg and better visibility into expected rent from the tenant have improved the company's outlook for rent loss this year, adding that AFFO is on track to end the year above the midpoint of the current guidance range. Shares were 0.31% higher at $70.17 in pre-market trading.

W. P. Carey Inc. raised its full-year AFFO guidance and quarterly dividend after reporting second-quarter 2026 revenue of US$461.06 million and net income of US$185.39 million. Management lifted AFFO guidance to a range of US$5.19 to US$5.27 per diluted share, supported by US$1.30 billion of year-to-date investments and a higher investment volume outlook, while also increasing the quarterly dividend to US$0.94 per share. The quarter included real estate impairment charges of US$79.42 million, a sharp increase that sharpens focus on tenant credit risk and single-tenant exposure. Basic earnings per share from continuing operations came in at US$0.82.

W.P. Carey reported second-quarter 2026 adjusted funds from operations of $1.34 per share, beating the Zacks Consensus Estimate by 2.3% and rising 4.7% from a year ago. Lease revenues increased 12.5% to $409.66 million, driven by net investment activity that reached $706.5 million in the quarter and $1.3 billion year-to-date. The net-lease portfolio of 1,748 properties remained 98.5% occupied with a weighted-average remaining lease term of 12.2 years. Management raised its full-year 2026 AFFO guidance to a range of $5.19 to $5.27 per share, up from $5.16 to $5.26, and increased its investment-volume assumption to $1.7 billion to $2.1 billion. The company ended the quarter with $2.74 billion in liquidity and a net debt to annualized adjusted EBITDA ratio of 5.5 times.

W.P. Carey's diversified net-lease portfolio and steady dividend growth support its long-term investment case, though competitive bidding and a large debt burden pose challenges. As of March 31, 2026, the company owned 1,703 properties with 98.1% occupancy and a weighted average lease term of 12.1 years, while nearly all leases include contractual rent escalations that drove 2.4% same-store contractual rent growth in the first quarter. Management expects 2026 investment volume of $1.5 billion to $2 billion, and the quarterly dividend was raised to 94 cents per share in June 2026, backed by a 71.5% AFFO payout ratio and 2026 AFFO guidance of $5.16 to $5.26 per share. However, acquisitions completed through April 28, 2026, carried an average cap rate of 7.2%, and total consolidated debt stood at $8.75 billion as of March 31, 2026, with first-quarter interest expense rising 14% year over year to $78.5 million. Shares have gained 22.3% over the past year, outperforming the industry's 12.8% growth.

Five dividend stocks currently offer yields above 5% with strong cash-flow coverage, according to 24/7 Wall St. Gaming and Leisure Properties yields 7.3% after raising its quarterly dividend to 82 cents per share, supported by first-quarter AFFO of $1.02 per share and full-year guidance of $4.08 to $4.12. VICI Properties yields nearly 7% with a forward annualized dividend of $1.80, backed by 2026 AFFO guidance of $2.42 to $2.45 per share and an eighth consecutive annual dividend increase. W. P. Carey yields just over 5% after hiking its quarterly dividend to 94 cents, with 2026 AFFO guidance of $5.13 to $5.23 per share and 48% of leases linked to CPI. Enbridge yields just over 5% and marked its 31st straight annual dividend increase, supported by 2026 distributable cash flow guidance of C$5.70 to C$6.10 per share and a C$40 billion secured growth backlog. Getty Realty yields about 5.6% with 2026 AFFO guidance of $2.48 to $2.50 per share, comfortably covering its dividend, and enters the year with over $500 million in liquidity.