W. P. Carey, a net lease REIT specialising in corporate sale-leasebacks, build-to-suits and the acquisition of single-tenant net lease properties, provided the following business update, including its investment, disposition and capital markets activities.
Investment Activity
For the 2025 full year, W. P. Carey completed record investment volume totalling $2.1 billion at a weighted-average initial cash cap rate of approximately 7.6 percent and an estimated average yield of approximately 9.2 percent (reflecting contractual rent escalations over the terms of the leases).
Single-tenant warehouse and industrial properties comprised approximately 68 percent of the Company’s full-year investment volume, while retail properties comprised approximately 22 percent. From a geographic perspective, approximately 69 percent of its 2025 investment volume was located in the U.S. and 26 percent in Europe.
During the 2025 fourth quarter, the Company completed investment volume totalling about $625 million, including the $322 million acquisition of a portfolio of 10 fitness facilities located in Eastern and Central U.S., net leased to Life Time Fitness, a leading premium fitness operator. Including already-owned properties net leased to Life Time Fitness, it ranked as the Company’s third largest tenant by annualised base rent (ABR) at year-end.
Sources of Equity Capital
During the 2025 fourth quarter, the Company disposed of 44 properties for gross proceeds totalling about $500 million, bringing total gross disposition proceeds for the 2025 full year to $1.5 billion.
Full-year disposition activity included the sale of 63 self-storage operating properties for gross proceeds totalling approximately $785 million, including 31 self-storage operating properties sold during the fourth quarter for gross proceeds totalling approximately $325 million. At year-end, W. P. Carey owned 11 self-storage operating properties, which it anticipates selling during the first half of 2026, further simplifying the Company.
The Company’s 2025 disposition activity supported its ability to accretively fund new investments, primarily through the disposition of non-core assets at yields that generated around 150 basis points of spread to the initial cash cap rates at which it reinvested the proceeds.
During 2025, the Company sold 6.3 million shares of common stock under its ATM program subject to forward sale agreements at a weighted-average gross price of $67.53 per share, representing total gross proceeds of approximately $423 million, which currently remains available for settlement.
Full-year sales of common stock subject to forward sale agreements included 3.5 million shares sold during the fourth quarter, representing total gross proceeds of approximately $235 million.
Portfolio Update
For the 2025 full year, the Company experienced rent loss from tenant credit events totalling about $6 million, compared to its most recently disclosed assumption of about $10 million.
Hellweg remained current on rent throughout 2025 and, as a result of re-tenanting and sales activity during the year, ranked as the Company’s 17th largest tenant by ABR at year-end.
Jason Fox, Chief Executive Officer, W. P. Carey, said: “2025 marked a record high year for investment volume, closing $2.1 billion of deals funded primarily through accretive sales of non-core assets, highlighted by our effective exit from operating self-storage.
“With a strong pipeline of high-quality opportunities to start 2026 and the vast majority of our anticipated equity needs for the year already accounted for – including around $420 million of forward equity, several hundred million dollars of planned accretive asset sales and $250 to $300 million of expected retained cash flow – we’re well-positioned to continue delivering attractive AFFO growth.”
