Please ensure Javascript is enabled for purposes of website accessibility

W.P. Carey Falls 5% on Q1 Results, Guidance Suspension

By Eric Volkman - May 1, 2020 at 9:16PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The veteran REIT appears to have held up well in the early days of the coronavirus pandemic, but uncertainty lies ahead.

One of the more durable real estate investment trusts (REITs) on the market wasn't a big winner with investors on Friday. Shares of W.P. Carey (WPC -0.72%) fell, even though the company reported Q1 of fiscal 2020 results showing growth in numerous key line items.

For the quarter, W.P. Carey booked total revenue of $309 million, which was 3.6% higher than the year-ago result. GAAP attributable net income came in at just over $66 million ($0.38 per share), down from the nearly $69 million of Q1 2019. On an adjusted basis, funds from operations (FFO) -- the most significant profitability metric for REITs -- climbed 7% higher to land at over $216 million, or $1.25 per share.

Leased sign on the window of a building.

Image source: Getty Images.

On average, analysts were estimating the company's net income would come in at $0.47 per share on revenue of $292 million.

As for operational yardsticks, the company's portfolio consisted of 1,235 properties at the end of the quarter. The occupancy rate was 98.8%.

W.P. Carey, like many companies operating inside the great economic uncertainty caused by the SARS-CoV-2 coronavirus outbreak, has elected to pull its full-year 2020 guidance. In doing so, it said that, "While our first quarter results were largely unaffected by COVID-19 and our April rent collections were strong, we are cautious about the pandemic's impact on the global economy."

That being said, the REIT added that, in spite of the disruptions to its business, "we believe we're well-positioned for a range of environments ahead, given our balance sheet strength and the diversification within our portfolio."

Investors might not necessarily agree. They bid W.P. Carey's shares down by 5% on Friday, which was a steeper fall than that endured by the benchmark equities indexes.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

W. P. Carey Inc. Stock Quote
W. P. Carey Inc.
WPC
$81.47 (-0.72%) $0.59

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
323%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/06/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.