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W. P. Carey (NYSE:WPC) is estimated to post lower top- and bottom-line figures in Q1 under the prevailing high interest rate environment.
The net lease REIT is scheduled to announce Q1 earnings results on Tuesday, April 30th, after market close.
The consensus FFO estimate is $1.15 (-10.83% Y/Y) and the consensus revenue estimate is $395.91M (-7.45% Y/Y).
Notably, peer Essential Properties Realty Trust missed its Q1 earnings estimate, and delivered 2024 AFFO guidance below consensus. The decline in earnings came as investment volume declined and expenses edged up.
Net lease REITs are among the most “bond-like” and interest-rate-sensitive property sectors. They have lagged other sectors under a higher-for-longer interest rate environment.
W.P. Carey’s Q4 2023 earnings missed consensus as its office exit continued and the company narrowed its 2024 earnings guidance. The company has missed FFO estimates 38% of the time in the last 8 quarters.
Considering the inflation forecasts, the company had predicted contractual same-store rent growth to be close to 3% in Q1, adversely impacting their net lease portfolio occupancy for the quarter.
The spinoff of the problematic part of the portfolio into a separate company should lead to improved per share growth. But the stock market clearly disagrees, according to Seeking Alpha author Long Player.
WPC has lost ~15% of its value year-to-date. The REIT gets a Hold rating from the sell-side analysts.
