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What's in Store for W. P. Carey (WPC) This Earnings Season?
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W. P. Carey Inc. (WPC - Free Report) is set to report second-quarter 2022 results on Jul 29 before market open. Both its quarterly revenues and funds from operations (FFO) per share are likely to have witnessed year-over-year growth.
In the last reported quarter, this New York-based net lease REIT delivered a surprise of 5.47% for the FFO per share.
Over the trailing four quarters, W. P. Carey surpassed estimates on three occasions and missed the same on the other, the average surprise being 2.58%. The graph below depicts the surprise history of the company:
Let’s see how things have shaped up before this announcement.
Factors to Consider
This diversified net lease REIT, which specializes in sale-leasebacks, build-to-suits and the acquisition of single-tenant net lease properties, is poised to benefit from its portfolio of operationally-critical commercial real estate, which it leases back to creditworthy tenants on a long-term basis with built-in rent escalators.
The company focuses on investing in high-quality single-tenant industrial, warehouse, office, retail and self-storage properties. These properties are located mainly in the United States, and Northern and Western Europe.
WPC is focused on capitalizing on accretive investment opportunities. On Jun 7, the company announced that since the end of the first quarter, it has entered into investments aggregating roughly $400 million. It includes investments amounting around $168 million under binding agreements and expected to close in 2022, with a substantial portion likely to close by the end of July.
These investments come as part of the company’s external growth strategy and diversified approach and include investments in industrial, grocery and lab properties located in the United States and Europe.
Amid these, the company’s second-quarter revenues are pegged at $331.93 million, indicating a 3.8% increase from the prior-year quarter.
However, the prevailing uncertainty surrounding the pandemic and the rising geopolitical tension and its impact on economic activity might affect the demand for several real estate, and W. P. Carey’s portfolio is also not immune to such impacts. Therefore, while W. P. Carey’s second-quarter results are likely to reflect gains from its high-quality diversified portfolio and strategic investments, choppiness in certain real estate categories is likely to have been a concern.
W. P. Carey’s activities during the quarter under review were not adequate to secure analysts’ confidence. The consensus estimate for quarterly FFO per share has remained unrevised at $1.29 in a month. However, it suggests a 1.57% increase year over year.
Here Is What Our Quantitative Model Predicts:
Our proven model does not conclusively predict a surprise in terms of FFO per share for W. P. Carey this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an FFO beat. However, that’s not the case here.
W. P. Carey currently carries a Zacks Rank #4 (Sell) and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are some stocks from the REIT sector — American Tower Corporation (AMT - Free Report) , Public Storage (PSA - Free Report) and SBA Communications Corporation (SBAC - Free Report) — that you may want to consider as our model shows that these have the right combination of elements to report a surprise this quarter.
American Tower Corporation, scheduled to report second-quarter earnings on Jul 28, currently has an Earnings ESP of +1.71% and carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Public Storage, slated to release quarterly numbers on Aug 4, has an Earnings ESP of +0.31% and carries a Zacks Rank of 3 at present.
SBA Communications Corporation, scheduled to report quarterly numbers on Aug 1, currently has an Earnings ESP of +0.95% and carries a Zacks Rank of 3.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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What's in Store for W. P. Carey (WPC) This Earnings Season?
W. P. Carey Inc. (WPC - Free Report) is set to report second-quarter 2022 results on Jul 29 before market open. Both its quarterly revenues and funds from operations (FFO) per share are likely to have witnessed year-over-year growth.
In the last reported quarter, this New York-based net lease REIT delivered a surprise of 5.47% for the FFO per share.
Over the trailing four quarters, W. P. Carey surpassed estimates on three occasions and missed the same on the other, the average surprise being 2.58%. The graph below depicts the surprise history of the company:
W.P. Carey Inc. Price and EPS Surprise
W.P. Carey Inc. price-eps-surprise | W.P. Carey Inc. Quote
Let’s see how things have shaped up before this announcement.
Factors to Consider
This diversified net lease REIT, which specializes in sale-leasebacks, build-to-suits and the acquisition of single-tenant net lease properties, is poised to benefit from its portfolio of operationally-critical commercial real estate, which it leases back to creditworthy tenants on a long-term basis with built-in rent escalators.
The company focuses on investing in high-quality single-tenant industrial, warehouse, office, retail and self-storage properties. These properties are located mainly in the United States, and Northern and Western Europe.
WPC is focused on capitalizing on accretive investment opportunities. On Jun 7, the company announced that since the end of the first quarter, it has entered into investments aggregating roughly $400 million. It includes investments amounting around $168 million under binding agreements and expected to close in 2022, with a substantial portion likely to close by the end of July.
These investments come as part of the company’s external growth strategy and diversified approach and include investments in industrial, grocery and lab properties located in the United States and Europe.
Amid these, the company’s second-quarter revenues are pegged at $331.93 million, indicating a 3.8% increase from the prior-year quarter.
However, the prevailing uncertainty surrounding the pandemic and the rising geopolitical tension and its impact on economic activity might affect the demand for several real estate, and W. P. Carey’s portfolio is also not immune to such impacts. Therefore, while W. P. Carey’s second-quarter results are likely to reflect gains from its high-quality diversified portfolio and strategic investments, choppiness in certain real estate categories is likely to have been a concern.
W. P. Carey’s activities during the quarter under review were not adequate to secure analysts’ confidence. The consensus estimate for quarterly FFO per share has remained unrevised at $1.29 in a month. However, it suggests a 1.57% increase year over year.
Here Is What Our Quantitative Model Predicts:
Our proven model does not conclusively predict a surprise in terms of FFO per share for W. P. Carey this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an FFO beat. However, that’s not the case here.
W. P. Carey currently carries a Zacks Rank #4 (Sell) and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are some stocks from the REIT sector — American Tower Corporation (AMT - Free Report) , Public Storage (PSA - Free Report) and SBA Communications Corporation (SBAC - Free Report) — that you may want to consider as our model shows that these have the right combination of elements to report a surprise this quarter.
American Tower Corporation, scheduled to report second-quarter earnings on Jul 28, currently has an Earnings ESP of +1.71% and carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Public Storage, slated to release quarterly numbers on Aug 4, has an Earnings ESP of +0.31% and carries a Zacks Rank of 3 at present.
SBA Communications Corporation, scheduled to report quarterly numbers on Aug 1, currently has an Earnings ESP of +0.95% and carries a Zacks Rank of 3.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.