Recent Sales Bring Current Office Exposure
Below 3% of Total ABR
NEW
YORK, Jan. 11, 2024 /PRNewswire/ -- W. P.
Carey Inc. (W. P. Carey, NYSE: WPC) a leading net lease REIT, today
announced that it sold a portfolio of 70 office properties net
leased to the State of Andalusia for approximately $359 million. The State of Andalusia portfolio
was the company's largest office portfolio which generated
annualized base rent (ABR) of approximately $31 million and estimated net operating income of
approximately $29 million, as of
December 31, 2023.
The sale completes the largest component of the company's
previously announced Office Sale Program, under a strategic plan to
exit the office assets within its portfolio through (i) the
spin-off of Net Lease Office Properties (completed in November 2023) and (ii) an asset sale program to
dispose of certain office properties retained by W. P. Carey (the
Office Sale Program).
Jason Fox, Chief Executive
Officer of W. P. Carey, said: "The sale of our largest
office asset, along with the progress we've made to date executing
on our strategic plan to exit office, has reduced our office
exposure to less than 3% of our total ABR. And we expect that
number to further decline over the near term as we complete the
remaining sales under the Office Sale Program, at which point over
60% of our ABR will come from industrial and warehouse assets, on a
portfolio that remains well diversified with a weighted-average
lease term over 11 years and rent growth that we believe will be
among the strongest in the net lease sector."
W. P. Carey Inc.
W. P. Carey ranks among the largest net lease REITs with a
well-diversified portfolio of high-quality, operationally critical
commercial real estate, which includes 1,413 net lease properties
covering approximately 171 million square feet and a portfolio of
86 self-storage operating properties, pro forma for the spin-off of
Net Lease Office Properties, as of September
30, 2023. With offices in New
York, London, Amsterdam and Dallas, the company remains focused on
investing primarily in single-tenant, industrial, warehouse and
retail properties located in the U.S. and Northern and Western Europe, under long-term net leases
with built-in rent escalations.
www.wpcarey.com
Certain of the matters discussed in this communication
constitute forward-looking statements within the meaning of the
Securities Act of 1933 and the Securities Exchange Act of 1934,
both as amended by the Private Securities Litigation Reform Act of
1995. The forward-looking statements include, among other things,
statements regarding the intent, belief or expectations of W. P.
Carey and can be identified by the use of words such as "may,"
"will," "should," "would," "will be," "goals," "believe,"
"project," "expect," "anticipate," "intend," "estimate"
"opportunities," "possibility," "strategy," "maintain" or the
negative version of these words and other comparable terms. These
forward-looking statements include, but are not limited to,
statements made by Mr. Jason Fox
regarding W. P. Carey's strategic plan to exit office and
expectations regarding lease term and rent growth. These statements
are based on the current expectations of our management, and it is
important to note that our actual results could be materially
different from those projected in such forward-looking statements.
There are a number of risks and uncertainties that could cause
actual results to differ materially from the forward-looking
statements. Other unknown or unpredictable risks or
uncertainties, like the risks related to fluctuating interest
rates, the impact of inflation on our tenants and us, the effects
of pandemics and global outbreaks of contagious diseases and
domestic or geopolitical crises, such as terrorism, military
conflict, war or the perception that hostilities may be imminent,
political instability or civil unrest, or other conflict, and those
additional risk factors discussed in reports that we have filed
with the Securities and Exchange Commission (SEC), could also have
material adverse effects on our future results, performance or
achievements. Discussions of some of these other important factors
and assumptions are contained in W. P. Carey's filings with the SEC
and are available at the SEC's website
at http://www.sec.gov, including Part I, Item
1A. Risk Factors in W. P. Carey's Annual Report on Form 10-K for
the fiscal year ended December 31,
2022 and in Part II, Item 1A, Risk Factors in W. P. Carey's
Quarterly Report on Form 10-Q for the quarter ended September 30, 2023. Investors are cautioned not
to place undue reliance on these forward-looking statements, which
speak only as of the date of this communication, unless noted
otherwise. Except as required under the federal securities laws and
the rules and regulations of the SEC, W. P. Carey does not
undertake any obligation to release publicly any revisions to the
forward-looking statements to reflect events or circumstances after
the date of this communication or to reflect the occurrence of
unanticipated events.
Institutional Investors:
Peter
Sands
1 (212) 492-1110
institutionalir@wpcarey.com
Individual Investors:
W. P. Carey Inc.
1 (212) 492-8920
ir@wpcarey.com
Press Contact:
Anna
McGrath
1 (212) 492-1166
amcgrath@wpcarey.com
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SOURCE W. P. Carey Inc.