WPC
W P Carey INC
NYSE
8-K: W. P. Carey Inc. Prices $600 Million Senior Notes Offering
Sentiment:
Debt Offering Announcement
13 November 2024 4:28 PM
W. P. Carey Inc. has successfully priced a $600 million offering of 3.700% Senior Notes due in 2034.
Capital raise
W. P. Carey Inc. is raising $600 million through the issuance of 3.700% Senior Notes due in 2034.
The offering is being underwritten by Barclays Bank PLC, BNP PARIBAS, J.P. Morgan Securities plc, and Bank of Montreal, London Branch.
Summary
- W. P. Carey Inc. has priced a public offering of $600 million in aggregate principal amount of 3.700% Senior Notes due in 2034.
- The notes were priced at 98.880% of the principal amount.
- The offering is expected to close on November 19, 2024, subject to customary closing conditions.
- The company intends to use the net proceeds for general corporate purposes, including funding potential future investments and repaying certain debts.
- This includes repaying amounts outstanding under its $2.0 billion unsecured revolving credit facility and all or a portion of its $450 million in aggregate principal amount outstanding under its 4.00% Senior Notes due February 2025.
- Interest on the notes will be paid annually on November 19, starting in 2025.
- The notes are intended to be listed on the Official List of the Irish Stock Exchange plc, trading as Euronext Dublin, and traded on the Global Exchange Market of Euronext Dublin.
Sentiment
Score: 7
Explanation: The sentiment is moderately positive as the company is successfully raising capital, which is a positive sign. However, the company is also taking on additional debt, which is a neutral to slightly negative factor.
Positives
- The successful pricing of the $600 million senior notes offering provides W. P. Carey with additional capital.
- The funds will be used for general corporate purposes, including potential future investments and debt repayment, which can support growth and financial stability.
- The notes are intended to be listed on Euronext Dublin, potentially increasing their visibility and accessibility to investors.
Negatives
- The company will incur additional debt obligations with the issuance of these notes.
- The company will need to make annual interest payments on the notes, which will impact cash flow.
Risks
- The company's ability to use the proceeds effectively for investments and debt repayment is subject to market conditions and investment opportunities.
- The company's ability to repay the debt obligations is subject to its financial performance and market conditions.
- The company's tenants ability to pay rent is subject to the broader macroeconomic environment.
- Fluctuating interest rates, inflation, pandemics, and geopolitical crises could have material adverse effects on the company's business.
Future Outlook
The company intends to use the net proceeds from the offering for general corporate purposes, including to fund potential future investments and to repay certain indebtedness. The company also plans to maintain its REIT status.
Management Comments
- The company intends to use the net proceeds from the offering for general corporate purposes, including to fund potential future investments and to repay certain indebtedness.
Industry Context
This offering is a common method for REITs to raise capital for acquisitions, development, and debt refinancing. The issuance of senior notes is a typical way for established REITs to access the debt markets.
Comparison to Industry Standards
- The 3.700% coupon rate on the senior notes is within the typical range for investment-grade REIT debt issuances at the time of the offering.
- The use of proceeds for general corporate purposes, including acquisitions and debt repayment, is consistent with industry practices for REITs.
- The listing of the notes on Euronext Dublin is a common practice for REITs seeking to diversify their investor base and access international capital markets.
- Comparable REITs such as Realty Income (O) and Prologis (PLD) also frequently issue debt to fund their operations and growth.
Stakeholder Impact
- Shareholders may see a positive impact from the company's ability to fund future investments and manage debt.
- Creditors will see an increase in the company's debt obligations.
- Employees may benefit from the company's continued growth and stability.
- Customers (tenants) may see continued investment in the company's properties.
Next Steps
- The offering is expected to settle on November 19, 2024.
- The company will use the net proceeds for general corporate purposes, including potential future investments and debt repayment.
- The company will list the notes on the Official List of Euronext Dublin and admit them to trading on the Global Exchange Market.
Key Dates
- 2024-11-12: Date of the underwriting agreement and pricing of the senior notes offering.
- 2024-11-19: Expected settlement date for the senior notes offering and first interest payment date.
- 2025-02: Maturity date of the $450 million senior notes that may be repaid with proceeds from this offering.
- 2025-11-19: First interest payment date for the newly issued senior notes.
- 2034-11-19: Maturity date of the 3.700% Senior Notes.
Keywords
Senior Notes, Debt Offering, Capital Markets, W. P. Carey, Euronext Dublin, Real Estate Investment Trust, REIT, Debt Financing
WPC
W P Carey INC
NYSE
Sector: Real Estate
Filings with Classifications
Capital raise
1 May 2025 5:22 PM
Capital Raising Announcement
- W. P. Carey Inc. has entered into an Equity Sales Agreement to offer and sell shares of its common stock, with an aggregate offering price of up to $1,250,000,000.
- The shares may be offered and sold from time to time through various agents.
- W. P. Carey may also sell shares to an agent as principal for its own account.
Worse than expected
30 April 2025 4:08 PM
Quarterly Report
- Net income attributable to W. P. Carey decreased due to higher losses from foreign debt remeasurement and increased allowance for credit losses.
Better than expected
1 April 2025 5:10 PM
Credit Agreement Amendment
- The amendment extends the maturity of a significant €500 million term loan by three years, improving the company's debt maturity profile.
- It introduces the potential for lower borrowing costs through a new pricing tier linked to higher credit ratings.
- The removal of specific spread adjustments on USD SOFR and CAD CORRA borrowings offers potential interest savings.
Worse than expected
12 February 2025 4:27 PM
Annual Results
- Total revenues decreased in 2024 as compared to 2023, primarily due to lower lease revenues and lower operating property revenues.
- Net income attributable to W. P. Carey decreased in 2024 as compared to 2023, primarily due to lower gain on sale of real estate, non-cash unrealized losses recognized on investment in shares of Lineage, and the impact of the Spin-Off and the Office Sale Program.
- AFFO decreased in 2024 as compared to 2023, primarily due to the impact of the Spin-Off and Office Sale Program.
Capital raise
12 February 2025 4:27 PM
Annual Results
- The company may access the capital markets through additional debt (denominated in both U.S. dollars and euros) and equity offerings, as well as term loans and other bank debt.
- The company may use existing cash resources, available capacity under our Senior Unsecured Credit Facility, proceeds from term loans or other bank debt, proceeds from dispositions of properties (including the Office Sale Program), and the issuance of additional debt or equity securities, such as issuances of common stock through our ATM Program, in order to meet our short-term and long-term liquidity needs.
Worse than expected
11 February 2025 4:10 PM
Earnings Release
- Net income attributable to W. P. Carey decreased by 67.4% in the fourth quarter compared to the same period in 2023.
- Full year AFFO per diluted share decreased by 9.3% from $5.18 in 2023 to $4.70 in 2024.
- Dividends declared during 2024 decreased by 14.2% compared to 2023.
- Revenues, including reimbursable costs, for the 2024 full year totaled $1.58 billion, down 9.2% from $1.74 billion for the 2023 full year.
Capital raise
13 November 2024 4:28 PM
Debt Offering Announcement
- W. P. Carey Inc. is raising $600 million through the issuance of 3.700% Senior Notes due in 2034.
- The offering is being underwritten by Barclays Bank PLC, BNP PARIBAS, J.P. Morgan Securities plc, and Bank of Montreal, London Branch.
Worse than expected
30 October 2024 4:06 PM
Quarterly Report
- The company's revenue, net income, and AFFO all decreased compared to the same period last year, indicating worse than expected results.
Worse than expected
29 October 2024 4:10 PM
Quarterly Report
- The company's net income and AFFO per share decreased compared to the same quarter last year, indicating worse results.
Worse than expected
15 October 2024 6:10 AM
Current Report
- The bankruptcy filing of a major tenant is generally considered a negative event that could impact future revenue.
Worse than expected
31 July 2024 4:06 PM
Quarterly Report
- Total revenues decreased due to lower lease revenues and operating property revenue.
- Net income attributable to W. P. Carey decreased due to the impact of the spin-off, asset sales, and impairment charges.
- AFFO decreased due to the impact of the spin-off, asset sales, lease restructurings and property vacancies.
Worse than expected
30 July 2024 4:06 PM
Quarterly Report
- The company's AFFO per diluted share decreased by 14.0% compared to the same quarter last year.
- The company lowered its full-year AFFO guidance by two cents per diluted share.
- Revenues decreased by 13.9% compared to the same quarter last year.
Capital raise
28 June 2024 4:15 PM
Debt Issuance Announcement
- W. P. Carey Inc. has raised $400 million through the issuance of 5.375% Senior Notes due 2034.
- The proceeds from this offering will be used for general corporate purposes, including potential investments and debt repayment.
Capital raise
20 June 2024 4:32 PM
Debt Offering Announcement
- The document details a $400 million offering of 5.375% Senior Notes due 2034.
- The company intends to use the net proceeds for general corporate purposes, including funding potential future investments and repaying indebtedness.
Capital raise
16 May 2024 4:10 PM
Debt Offering Announcement
- W. P. Carey Inc. has raised €650 million through the issuance of 4.250% Senior Notes due 2032.
- The offering was made pursuant to the company's automatic shelf registration statement and a final prospectus supplement.
Capital raise
8 May 2024 5:25 PM
Debt Offering Announcement
- W. P. Carey Inc. is raising $650 million through the issuance of senior notes.
- The notes are being offered to the public through an underwritten offering.
- The proceeds will be used for general corporate purposes and to repay existing debt.
Capital raise
1 May 2024 4:09 PM
Quarterly Report
- The company may use the at-the-market program (ATM Program) to issue additional equity securities.
- The company may also access the capital markets through additional debt offerings.
Worse than expected
1 May 2024 4:09 PM
Quarterly Report
- The company's revenue and net income decreased year-over-year, indicating worse performance compared to the previous year.
- AFFO also decreased, which is a key metric for REIT performance, suggesting a decline in operational profitability.
Worse than expected
30 April 2024 4:04 PM
Quarterly Report
- Net income and AFFO per share were down compared to the same period last year, indicating worse results.
Capital raise
9 February 2024 4:56 PM
Annual Results
- The company may access the capital markets through additional debt and equity offerings, as well as term loans and other bank debt.
- The company may issue common stock through its ATM Program.
Worse than expected
9 February 2024 4:56 PM
Annual Results
- The company's net income from Investment Management decreased due to the cessation of fees from CPA:18 Global.
- The company's fourth quarter dividend of $0.860 per share reflects a lower payout ratio.
Worse than expected
9 February 2024 7:39 AM
Quarterly Report
- The company's AFFO per diluted share for the fourth quarter and full year 2023 decreased compared to the previous year.
- The company's 2024 AFFO guidance is lower than the 2023 full year AFFO.
- Net income attributable to W. P. Carey decreased by 31.1% in the fourth quarter of 2023 compared to the same period in 2022.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.