WP Carey (NYSE: WPC) posted a 2023 earnings outlook that is well above analysts’ average estimate as it has a healthy pipeline of transactions underway. Earnings in the fourth quarter, although lower than the previous quarter and the quarter last year, increased rather than the consensus of the Street.
Net Lease expects 2023 adjusted FFO per share of $5.30 to $5.40 (consisting entirely of real estate AFFO) versus the consensus $5.21 and $5.29 reported for 2022. The outlook assumes full-year investment volume of USD 1.75 billion to USD 2.25 billion, more than USD 1.4 billion in 2022.
“We currently have a significant short-term backlog of transactions in advanced stages, which combined with capital projects and commitments due to be completed in 2023 and our year-to-date volume of business gives us investment visibility of at least $700 million, just over a month into year,” said CEO Jason Fox. “And the significant amount of dry powder that we have collected ensures that we are well positioned to execute.”
Adjusted FFO per share of $1.29 for the fourth quarter, above the average analyst estimate of $1.26, was down from $1.36 in the third quarter and from $1.30 in the fourth quarter of 2021.
Real Estate segment AFFO of $270.0 million, or $1.29 per share, was down from $273.6 million, or $1.34 per share, in the third quarter and up from $239.0 million, or $1. $27 per share, in the fourth quarter of 2021.
Operating expenses in the fourth quarter fell to $234.8 million from $246.8 million in the prior quarter and increased from $200.5 million in the same period last year.
The rent collection rate was over 99.3% in the fourth quarter of 2022, even in the third quarter. Portfolio occupancy of 98.8% versus 98.9% in the previous quarter.
The $158.5 million real estate portfolio investment volume was completed in 2022, including $1.4 billion during the fourth quarter.
WP Carey (WPC) reported gross sales of $67.6 million during the fourth quarter, bringing total sales for the year to $243.7 million.
Conference call at 10:00 a.m. ET.
Earlier, WP Carey ( WPC ) $1.29 FFO better than $0.03, revenue of $402.63M higher than $11.98M