Peter Sands

1 (212) 492-1110

institutionalir@wpcarey.com

W. P. Carey Inc.

1 (212) 492-8920

ir@wpcarey.com

Anna McGrath

1 (212) 492-1166

amcgrath@wpcarey.com

New York, NY – November 4, 2022 – W. P. Carey Inc. (NYSE: WPC) (W. P. Carey or the Company), a net lease real estate investment trust, today reported its financial results for the third quarter ended September 30, 2022.

•2022 AFFO guidance raised and narrowed to between $5.25 and $5.31 per diluted share, including Real Estate AFFO of between $5.16 and $5.22 per diluted share, based on full-year investment volume of between $1.5 billion and $2.0 billion

•Quarterly cash dividend raised to $1.061 per share, equivalent to an annualized dividend rate of $4.244 per share

•Investment volume of $1.3 billion completed during the first nine months of 2022, including $474.8 million during the third quarter

•Active capital investments and commitments of $37.7 million and construction loan funding of $25.9 million scheduled to be completed in the 2022 fourth quarter

•Gross disposition proceeds of $56.7 million during the third quarter, bringing total dispositions for the first nine months of 2022 to $176.1 million

•Completed merger with CPA:18 in a transaction adding approximately $2.2 billion of real estate assets

•Private placement debt issuance comprising €200 million of 3.70% Senior Unsecured Notes due 2032 and €150 million of 3.41% Senior Unsecured Notes due 2029

•Approximately $642 million in anticipated net proceeds currently available for settlement pursuant to forward sale agreements, including approximately $159 million pursuant to forward sale agreements sold through the Company’s ATM program during the third quarter

“We generated strong third quarter results across several areas of our business, raising our expectations for full-year AFFO per share, driven by Real Estate AFFO per share that is on track for year-over-year growth of just over 6%,” said Jason Fox, Chief Executive Officer of W. P. Carey.

“While cap rates have been slow to adjust to sharply higher interest rates, deal pricing is increasingly getting more interesting, and our balance sheet puts us in a position of strength to deploy capital at appropriate spreads — having raised debt and equity capital at attractive prices and armed with over $2 billion of liquidity.

“We also continue to benefit from our sector-leading same-store rent growth, which reached a new high during the quarter, driven by inflation. As current CPI numbers flow through to rents, we expect our same-store growth to move even higher in 2023, and to continue seeing the benefits into 2024.”

•Total Company: Revenues, including reimbursable costs, for the 2022 third quarter totaled $383.6 million, up 17.7% from $325.8 million for the 2021 third quarter.

•Real Estate: Real Estate revenues, including reimbursable costs, for the 2022 third quarter were $382.1 million, up 19.1% from $320.8 million for the 2021 third quarter, due primarily to additional lease revenues and operating property revenues from properties acquired in the CPA:18 Merger, higher lease revenues resulting from net investment activity and rent escalations, and higher lease termination income and other revenues, partly offset by the impact of a stronger U.S. dollar relative to foreign currencies, primarily the euro.

•Net income attributable to W. P. Carey for the 2022 third quarter was $104.9 million, down 24.3% from $138.5 million for the 2021 third quarter. Net income from Real Estate attributable to W. P. Carey was $111.4 million, which decreased due primarily to a mark-to-market gain recognized on the Company’s shares of Lineage Logistics of $52.9 million during the prior year period and the net impact of a stronger U.S. dollar relative to foreign currencies, primarily the euro, which more than offset the impact of net investment activity (including properties acquired in the CPA:18 Merger) and rent escalations. Net loss from Investment Management attributable to W. P. Carey was $6.4 million, reflecting a $29.3 million impairment charge recognized on goodwill within that segment since Investment Management revenues are expected to be minimal going forward following the CPA:18 Merger. The Company also recognized a $33.9 million gain on change in control of interests in connection with the CPA:18 Merger.

•AFFO for the 2022 third quarter was $1.36 per diluted share, up 9.7% from $1.24 per diluted share for the 2021 third quarter, driven by the company’s Real Estate segment, which generated AFFO of $1.34 per diluted share, primarily reflecting the net impact of investment activity, rent escalations, higher lease termination income and other revenues, and the net impact of properties acquired in the CPA:18 Merger, including additional interest expense from mortgages on properties acquired in the CPA:18 Merger. This was partly offset by the net impact of a stronger U.S. dollar relative to foreign currencies, primarily the euro.

•As previously announced, on September 15, 2022, the Company’s Board of Directors declared a quarterly cash dividend of $1.061 per share, equivalent to an annualized dividend rate of $4.244 per share. The dividend was paid on October 14, 2022 to stockholders of record as of September 30, 2022.

•For the 2022 full year, the Company has raised its guidance for total AFFO and narrowed the range to between $5.25 and $5.31 per diluted share, including Real Estate AFFO of between $5.16 and $5.22 per diluted share, based on the following key assumptions:

(i) investments for the Company's Real Estate portfolio of between $1.5 billion and $2.0 billion, which has been revised lower;

(ii) dispositions from the Company's Real Estate portfolio of between $200 million and $300 million, which has been revised lower; and

(iii) total general and administrative expenses of between $88 million and $90 million, which has been revised lower.

•On August 1, 2022, the Company completed its merger with CPA:18 (the CPA:18 Merger), which added approximately $2.2 billion of real estate assets.

•During the 2022 third quarter, the Company completed investments totaling $474.8 million, bringing total investment volume for the nine months ended September 30, 2022 to $1.3 billion (excluding properties acquired in the CPA:18 Merger).

•The Company currently has two capital investments and commitments totaling $37.7 million and construction loan funding of $25.9 million scheduled to be completed during the fourth quarter, for an aggregate total of $63.6 million.

•During the 2022 third quarter, the Company disposed of three properties for gross proceeds of $56.7 million, bringing total disposition proceeds for the nine months ended September 30, 2022 to $176.1 million.

•The Company received over 99.3% of contractual base rent that was due in the 2022 third quarter.

•As of September 30, 2022, the Company’s net lease portfolio consisted of 1,428 properties, comprising 175 million square feet leased to 391 tenants, with a weighted-average lease term of 10.9 years and an occupancy rate of 98.9%. In addition, the Company owned 84 self-storage operating properties, two student housing operating properties and one hotel operating property, totaling approximately 6.6 million square feet.

•As previously announced, on September 28, 2022, the Company completed private placement offerings of (i) €150 million aggregate principal amount of 3.41% Senior Notes due September 28, 2029 and (ii) €200 million aggregate principal amount of 3.70% Senior Notes due September 28, 2032.

•During the 2022 third quarter, the Company used forward sale agreements under its ATM program to sell 1,863,850 shares of common stock at a weighted-average gross price of $86.46 per share, all of which remain available for settlement, for anticipated net proceeds of approximately $159 million.

•During the 2022 third quarter, the Company settled a portion of its outstanding forward sale agreements, issuing 1,337,500 shares of common stock for net proceeds of $97 million.

•As of September 30, 2022, the Company therefore had an aggregate of $642 million in anticipated net proceeds available for settlement pursuant to forward sale agreements.

•In October 2022, all outstanding shares of Watermark Lodging Trust (WLT) common stock were acquired by a private real estate fund. As of the date of acquisition, the Company owned 12,208,243 shares of WLT common stock for which it received $82.6 million in cash and as a result has no remaining interest in WLT.

The Company has provided supplemental unaudited financial and operating information regarding the 2022 third quarter and certain prior quarters, including a description of non-GAAP financial measures and reconciliations to GAAP measures, in a Current Report on Form 8-K filed with the Securities and Exchange Commission (SEC) on November 4, 2022, and made available on the Company’s website at ir.wpcarey.com/investor-relations.

Date/Time: Friday, November 4, 2022 at 10:00 a.m. Eastern Time

Call-in Number: 1 (877) 465-1289 (U.S.) or +1 (201) 689-8762 (international)

Live Audio Webcast and Replay: www.wpcarey.com/earnings

W. P. Carey ranks among the largest net lease REITs with an enterprise value of approximately $22 billion and a diversified portfolio of operationally critical commercial real estate that includes 1,428 net lease properties covering approximately 175 million square feet and a portfolio of 84 self-storage operating properties as of September 30, 2022. For nearly five decades, the company has invested in high-quality single-tenant industrial, warehouse, office, retail and self-storage properties subject to long-term net leases with built-in rent escalators. Its portfolio is located primarily in the U.S. and Northern and Western Europe and is well-diversified by tenant, property type, geographic location and tenant industry. 

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 our ability to deploy capital effectively and benefit from rent escalations. 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 the effects of pandemics and global outbreaks of contagious diseases (such as the current COVID-19 pandemic) and domestic or geopolitical crises, such as terrorism, military conflict (including the ongoing conflict between Russia and Ukraine and the global response to it), 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 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, 2021. 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.

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(a)Includes $1.6 billion and $1.5 billion of accumulated depreciation on buildings and improvements as of September 30, 2022 and December 31, 2021, respectively, and $1.5 billion and $1.4 billion of accumulated amortization on lease intangibles as of September 30, 2022 and December 31, 2021, respectively.

(b)Our equity method investments in real estate totaled $295.3 million and $291.9 million as of September 30, 2022 and December 31, 2021, respectively. Our equity method investments in the Managed Programs totaled $2.3 million and $64.7 million as of September 30, 2022 and December 31, 2021, respectively.

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(a)Amount for the three months ended September 30, 2022 represents an impairment charge recognized on goodwill within our Investment Management segment, since future Investment Management cash flows are expected to be minimal.

(b)Amounts are primarily comprised of costs incurred in connection with the CPA:18 Merger and/or reversals of estimated liabilities for German real estate transfer taxes that were previously recorded in connection with mergers in prior years.

(c)Amount for the three and nine months ended September 30, 2022 represents gains recognized on (i) the remaining interests in four investments acquired in the CPA:18 Merger, which we had previously accounted for under the equity method, and (ii) our previously held interest in shares of CPA:18 – Global common stock in connection with the CPA:18 Merger.

(d)Amount for the three months ended September 30, 2022 is primarily comprised of net loss on foreign currency exchange rate movements of $(36.4) million, a release of a non-cash allowance for credit losses of $16.2 million, a gain on the repayment of a loan receivable of $10.6 million, the write-off of an insurance receivable acquired as part of a prior merger of $(9.4) million and a gain on extinguishment of debt of $2.3 million.

(e)Amount for the three months ended September 30, 2022 is comprised of realized gains on foreign currency exchange derivatives of $8.7 million and interest income on deposits and loans to affiliates of $0.6 million.

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(a)Amount for the three and nine months ended September 30, 2022 represents a gain recognized on the remaining interests in four investments acquired in the CPA:18 Merger, which we had previously accounted for under the equity method.

(b)Amount for the three and nine months ended September 30, 2022 represents a gain recognized on our previously held interest in shares of CPA:18 – Global common stock in connection with the CPA:18 Merger.

(c)Amount for the three and nine months ended September 30, 2022 represents an impairment charge recognized on goodwill within our Investment Management segment, since future Investment Management cash flows are expected to be minimal.

(d)Equity income, including amounts that are not typically recognized for FFO and AFFO, is recognized within Earnings from equity method investments on the consolidated statements of income. This represents adjustments to equity income to reflect FFO and AFFO on a pro rata basis.

(e)Adjustments disclosed elsewhere in this reconciliation are on a consolidated basis. This adjustment reflects our FFO or AFFO on a pro rata basis.

(f)FFO and AFFO are non-GAAP measures. See below for a description of FFO and AFFO.

(g)Amounts are primarily comprised of costs incurred in connection with the CPA:18 Merger and/or reversals of estimated liabilities for German real estate transfer taxes that were previously recorded in connection with mergers in prior years.

(h)AFFO adjustment amounts for the three months ended September 30, 2022 are primarily comprised of a net loss on foreign currency exchange rate movements of $(36.4) million, a release of a non-cash allowance for credit losses of $16.2 million, a gain on the repayment of a loan receivable of $10.6 million, the write-off of an insurance receivable acquired as part of a prior merger of $(9.4) million and a gain on extinguishment of debt of $2.3 million. Real Estate AFFO adjustment amounts for the three months ended September 30, 2022 are primarily comprised of a net loss on foreign currency exchange rate movements of $(36.3) million, a release of a non-cash allowance for credit losses of $16.2 million, a gain on the repayment of a loan receivable of $10.6 million, the write-off of an insurance receivable acquired as part of a prior merger of $(9.4) million and a gain on extinguishment of debt of $2.3 million.

This supplemental package includes certain “non-GAAP” supplemental measures that are not defined by generally accepted accounting principles (“GAAP”), including funds from operations (“FFO”); adjusted funds from operations (“AFFO”); earnings before interest, taxes, depreciation and amortization (“EBITDA”); adjusted EBITDA; pro rata cash net operating income (“pro rata cash NOI”); normalized pro rata cash NOI; same store pro rata rental income; cash interest expense; and cash interest expense coverage ratio. FFO is a non-GAAP measure defined by the National Association of Real Estate Investments Trusts, Inc. (“NAREIT”), an industry trade group. Reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures are provided within this supplemental package. In addition, refer to the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of these non-GAAP financial measures and other metrics.

Supplemental Information – Third Quarter 2022

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(a)Normalized pro rata cash NOI, adjusted EBITDA, AFFO and cash interest expense coverage ratio are non-GAAP measures. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of our non-GAAP measures and for details on how certain non-GAAP measures are calculated.

(b)Presented on a pro rata basis. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata.

(c)Represents dividends declared per share divided by AFFO per diluted share on a year-to-date basis.

(d)Represents total pro rata debt outstanding less consolidated cash and cash equivalents. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata.

(e)Gross assets represent consolidated total assets before accumulated depreciation on buildings and improvements. Gross assets are net of accumulated amortization on in-place lease intangible assets of $983.0 million and above-market rent intangible assets of $496.4 million.

(f)Represents (i) availability under our Senior Unsecured Credit Facility (net of amounts reserved for standby letters of credit), (ii) consolidated cash and cash equivalents, (iii) available proceeds under our forward sale agreements (based on 2,587,500 remaining shares and a net offering price of $71.81 per share as of September 30, 2022, which will be updated at each quarter end) and (iv) available proceeds under our “at-the-market” forward sale agreements (based on 5,538,037 remaining shares and a net offering price of $82.29 per share as of September 30, 2022, which will be updated at each quarter end).

(g)See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of ABR.

(h)Represents ABR from properties unencumbered by non-recourse mortgage debt.

(i)Comprised of 84 self-storage properties, two student housing properties and one hotel.

(j)Percentage of portfolio is based on ABR, as of September 30, 2022. Includes tenants or guarantors with investment grade ratings (24.3%) and subsidiaries of non-guarantor parent companies with investment grade ratings (7.2%). Investment grade refers to an entity with a rating of BBB- or higher from Standard & Poor’s Ratings Services or Baa3 or higher from Moody’s Investors Service. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of ABR.

(k)See the Same Store Analysis section for a description of contractual same store growth.

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(a)Normalized pro rata cash NOI and adjusted EBITDA are non-GAAP measures. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of our non-GAAP measures and for details on how they are calculated.

(b)Presented on a pro rata basis. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata.

(c)Other operating properties include two student housing properties and one hotel.

(d)Represents the value of real estate not included in normalized pro rata cash NOI, such as vacant assets, in-progress build-to-suit properties, real estate under construction for certain expansion projects at existing properties and a common equity interest in the Harmon Retail Corner in Las Vegas.

(e)Represents a construction loan for a retail complex in Las Vegas, Nevada, which was entered into in June 2021 and is included in Equity method investments (as an equity method investment in real estate) on our consolidated balance sheets. See the Investment Activity – Investment Volume section for additional information about this investment.

(f)Comprised of rent receivables that were substantially collected as of the date of this report.

(g)Excludes unamortized discount, net totaling $37.5 million and unamortized deferred financing costs totaling $26.4 million as of September 30, 2022.

(h)We were entitled to receive distributions of up to 10% of the Available Cash of CPA:18 – Global (as defined in its operating partnership agreement), prior to the CPA:18 Merger on August 1, 2022. Such distributions of Available Cash totaled $3.3 million for the three months ended September 30, 2022, representing four months of activity since the CPA:18 Merger closed on August 1, 2022 and distributions of Available Cash are paid in arrears. We no longer receive this distribution of Available Cash following the CPA:18 Merger and it is not included in the tables above.

(i)Represents asset management revenue from CESH, based on 1% of gross assets under management at fair value, per annum. Average assets under management (of current quarter and prior quarter) was $166.3 million as of September 30, 2022.

(j)Asset management revenue for the three months ended September 30, 2022 excludes $0.9 million from CPA:18 – Global prior to the CPA:18 Merger on August 1, 2022.

(k)We own limited partnership units of CESH. The value above reflects its private placement price, net of cash distributions. We do not intend to calculate a NAV for CESH.

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(a)Amount for the three months ended December 31, 2021 includes $37.8 million of lease termination fees that was determined to be non-core income and thus excluded from AFFO.

(b)Amount for the three months ended September 30, 2022 represents an impairment charge recognized on goodwill within our Investment Management segment, since future Investment Management cash flows are expected to be minimal.

(c)Amounts are primarily comprised of costs incurred in connection with the CPA:18 Merger and/or reversals of estimated liabilities for German real estate transfer taxes that were previously recorded in connection with mergers in prior years.

(d)Amount for the three months ended September 30, 2022 represents gains recognized on (i) the remaining interests in four investments acquired in the CPA:18 Merger, which we had previously accounted for under the equity method, and (ii) our previously held interest in shares of CPA:18 – Global common stock in connection with the CPA:18 Merger.

(e)Amount for the three months ended September 30, 2022 is primarily comprised of net loss on foreign currency exchange rate movements of $(36.4) million, a release of a non-cash allowance for credit losses of $16.2 million, a gain on the repayment of a loan receivable of $10.6 million, the write-off of an insurance receivable acquired as part of a prior merger of $(9.4) million and a gain on extinguishment of debt of $2.3 million. Amount for the three months ended September 30, 2021 includes a mark-to-market unrealized gain for our investment in shares of Lineage Logistics of $52.9 million.

(f)Amounts for the three months ended March 31, 2022 and December 31, 2021 include non-cash impairment charges of $4.6 million and $13.2 million, respectively, recognized on certain equity method investments in real estate.

(g)Amount for the three months ended September 30, 2022 is comprised of realized gains on foreign currency exchange derivatives of $8.7 million and interest income on deposits and loans to affiliates of $0.6 million.

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(a)Amount for the three months ended December 31, 2021 includes $37.8 million of lease termination fees that was determined to be non-core income and thus excluded from AFFO.

(b)Amounts are primarily comprised of costs incurred in connection with the CPA:18 Merger and/or reversals of estimated liabilities for German real estate transfer taxes that were previously recorded in connection with mergers in prior years.

(c)Amount for the three months ended September 30, 2022 is primarily comprised of a net loss on foreign currency exchange rate movements of $(36.3) million, a release of a non-cash allowance for credit losses of $16.2 million, a gain on the repayment of a loan receivable of $10.6 million, the write-off of an insurance receivable acquired as part of a prior merger of $(9.4) million and a gain on extinguishment of debt of $2.3 million. Amount for the three months ended September 30, 2021 includes a mark-to-market unrealized gain for our investment in shares of Lineage Logistics of $52.9 million.

(d)Amount for the three months ended September 30, 2022 represents a gain recognized on the remaining interests in four investments acquired in the CPA:18 Merger, which we had previously accounted for under the equity method.

(e)Amounts for the three months ended March 31, 2022 and December 31, 2021 include non-cash impairment charges of $4.6 million and $13.2 million, respectively, recognized on certain equity method investments in real estate.

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(a)Amount for the three months ended September 30, 2022 represents an impairment charge recognized on goodwill within our Investment Management segment, since future Investment Management cash flows are expected to be minimal.

(b)Amount for the three months ended September 30, 2022 represents a gain recognized on our previously held interest in shares of CPA:18 – Global common stock in connection with the CPA:18 Merger.

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(a)Amount for the three months ended September 30, 2022 represents gains recognized on (i) the remaining interests in four investments acquired in the CPA:18 Merger, which we had previously accounted for under the equity method, and (ii) our previously held interest in shares of CPA:18 – Global common stock in connection with the CPA:18 Merger.

(b)Amount for the three months ended September 30, 2022 represents an impairment charge recognized on goodwill within our Investment Management segment, since future Investment Management cash flows are expected to be minimal.

(c)Amounts for the three months ended March 31, 2022 and December 31, 2021 include non-cash impairment charges of $4.6 million and $13.2 million, respectively, recognized on certain equity method investments in real estate.

(d)Equity income, including amounts that are not typically recognized for FFO and AFFO, is recognized within Earnings from equity method investments on the consolidated statements of income. This represents adjustments to equity income to reflect FFO and AFFO on a pro rata basis.

(e)Adjustments disclosed elsewhere in this reconciliation are on a consolidated basis. This adjustment reflects our FFO or AFFO on a pro rata basis.

(f)FFO and AFFO are non-GAAP measures. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of our non-GAAP measures.

(g)Amounts are primarily comprised of costs incurred in connection with the CPA:18 Merger and/or reversals of estimated liabilities for German real estate transfer taxes that were previously recorded in connection with mergers in prior years.

(h)Amount for the three months ended September 30, 2022 is primarily comprised of a net loss on foreign currency exchange rate movements of $(36.4) million, a release of a non-cash allowance for credit losses of $16.2 million, a gain on the repayment of a loan receivable of $10.6 million, the write-off of an insurance receivable acquired as part of a prior merger of $(9.4) million and a gain on extinguishment of debt of $2.3 million.

(i)Amount for the three months ended December 31, 2021 includes an adjustment to exclude $37.8 million of lease termination fees received from a tenant. as such amount was determined to be non-core income.