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Net Lease REITs (Mostly) Top Q4 Estimates

The latest to do so was W. P. Carey, which blew past consensus estimates of its fourth-quarter performance with Friday’s earnings report.

Jason Fox of W. P. Carey WPC’s decisions to be a net seller and refocus its business have “improved the quality of our portfolio and the composition of our revenue streams,” says CEO Jason Fox.

NEW YORK CITY—With W. P. Carey the latest to do so, net lease REITs reporting their fourth-quarter 2017 results have usually, although not invariably, surpassed estimates of various performance metrics. WPC’s earnings per share of $1.18, announced Friday morning, beat the Zacks consensus estimate by 61 cents. Its adjusted funds from operations for Q4 and the past 12 months similarly represented gains compared to 2016.

“Our fourth-quarter and full-year results reflect the continuing positive effects of the advancements we’ve made in recent years, with AFFO per diluted share up 7.4% and 3.5%, respectively, over the prior-year periods,” says CEO Jason Fox. “Reductions in our cost base and an improved cost of debt outweighed the near-term impacts of our decisions to be a net seller and refocus our business, which have improved the quality of our portfolio and the composition of our revenue streams.” This past June, WPC’s board voted to wind down the company’s non-traded REIT series.

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Paul Bubny

Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.

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