W. P. Carey Inc. Announces Second Quarter 2019 Financial Results
https://www.bloomberg.com/press-releases/...er-2019-financial-results
Total Company
o Net income attributable to W. P. Carey of $66.0 million, or $0.38 per diluted share o AFFO of $208.5 million, or $1.22 per diluted share o 2019 AFFO guidance range narrowed to $4.95 to $5.05 per diluted share, including Real Estate AFFO of $4.70 to $4.80 per diluted share o Quarterly cash dividend raised to $1.034 per share, equivalent to an annualized dividend rate of $4.136 per share Business Segments Real Estate o Segment net income attributable to W. P. Carey of $60.8 million o Segment AFFO of $199.8 million, or $1.17 per diluted share o Investment volume of $439.9 million year to date, including $394.7 million completed during the first half of 2019 and $45.2 million subsequent to quarter end o Active capital investment projects totaling $183.7 million at quarter end, including $95.9 million expected to be completed in 2019 o Entered into agreements to convert 36 existing self-storage operating properties to net leases o Gross disposition proceeds of $21.9 million during the first half of 2019 o Portfolio occupancy of 98.2% o Weighted-average lease term increased to 10.4 years Investment Management o Segment net income attributable to W. P. Carey of $5.3 million o Segment AFFO of $8.6 million, or $0.05 per diluted share Balance Sheet and Capitalization o Issued $325 million of 3.850% Senior Unsecured Notes due 2029 o Utilized ATM program to raise $88.3 million in net proceeds during the second quarter, bringing net proceeds raised during the first half of 2019 to $392.1 million o Prepaid mortgage debt totaling $293.7 million during the second quarter, bringing mortgage debt prepaid during the first half of 2019 to $493.3 million ... QUARTERLY FINANCIAL RESULTS
Revenues o Total Company: Revenues, including reimbursable costs, for the 2019 second quarter totaled $305.2 million, up 51.8% from $201.1 million for the 2018 second quarter. o Real Estate: Real Estate revenues, including reimbursable costs, for the 2019 second quarter were $291.5 million, up 67.6% from $173.9 million for the 2018 second quarter, due primarily to additional lease revenues from properties acquired in the Company's merger with CPA:17 on October 31, 2018 (the CPA:17 Merger) and net acquisitions. Note: While it has no impact on net income or AFFO, in accordance with Accounting Standards Update 2016-02, Leases (Topic 842), which the Company has adopted effective as of January 1, 2019, operating expenses reimbursed by tenants are included within lease revenues on the consolidated statements of income (for both current and prior year periods). Prior to that date the Company presented revenues excluding reimbursable costs. o Investment Management: Investment Management revenues, including reimbursable costs, for the 2019 second quarter were $13.7 million, down 49.6% from $27.2 million for the 2018 second quarter, due primarily to the cessation of asset management revenue previously earned from CPA:17. Net Income Attributable to W. P. Carey o Net income attributable to W. P. Carey for the 2019 second quarter was $66.0 million, down 12.8% from $75.7 million for the 2018 second quarter. Net income from Investment Management attributable to W. P. Carey decreased, due primarily to the cessation of Investment Management revenues and distributions previously earned from CPA:17. Net income from Real Estate attributable to W. P. Carey increased, due primarily to properties acquired in the CPA:17 Merger and net acquisitions. The increase in revenues from properties acquired in the CPA:17 Merger and acquisitions was partly offset by corresponding increases in depreciation and amortization, interest expense and property expenses. Adjusted Funds from Operations (AFFO) o AFFO for the 2019 second quarter was $1.22 per diluted share, down 7.6% from $1.32 per diluted share for the 2018 second quarter. AFFO from the Company's Real Estate segment (Real Estate AFFO) increased, due primarily to the accretive impact of properties acquired in the CPA:17 Merger and net acquisitions. AFFO from the Company's Investment Management segment declined, due primarily to the cessation of Investment Management revenues and distributions previously earned from CPA:17. Note: Further information concerning AFFO and Real Estate AFFO, which are both non-GAAP supplemental performance metrics, is presented in the accompanying tables and related notes. Dividend o As previously announced, on June 13, 2019 the Company's Board of Directors declared a quarterly cash dividend of $1.034 per share, equivalent to an annualized dividend rate of $4.136 per share. The dividend was paid on July 15, 2019 to stockholders of record as of June 28, 2019.
AFFO GUIDANCE o For the 2019 full year, the Company has narrowed its AFFO guidance range and currently expects to report total AFFO of between $4.95 and $5.05 per diluted share, including Real Estate AFFO of between $4.70 and $4.80 per diluted share, based on the following key assumptions, which are unchanged:
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