W. P. Carey Hits Record $2.1B Investment, Pivots to Industrial Core

NEW YORK, NY – January 07, 2026 – Net lease real estate giant W. P. Carey Inc. announced a landmark year for 2025, closing a record $2.1 billion in new investments while simultaneously executing a significant strategic pivot by shedding $1.5 billion in assets, most notably accelerating its exit from the self-storage sector. The moves underscore a disciplined strategy to fortify its portfolio with high-demand industrial and warehouse properties, funded through a masterclass in capital recycling that positions the firm for continued growth in 2026.

The company's full-year update reveals a clear focus on high-quality, long-term net lease properties, demonstrating resilience and strategic foresight in a dynamic real estate market.

A Year of Record Investment and Strategic Focus

W. P. Carey's investment activity in 2025 set a new company benchmark. The $2.1 billion in acquisitions were secured at a weighted-average initial cash capitalization rate of approximately 7.6%, with an estimated average yield of 9.2% over the lease terms, reflecting built-in rent escalations. This performance is particularly notable against the backdrop of a broader net lease market that, while rebounding from previous years, still faced mixed conditions and interest rate sensitivity.

The composition of these investments reveals the firm's strategic direction. Single-tenant warehouse and industrial properties, the backbone of modern supply chains, accounted for a commanding 68% of the investment volume. This aggressive push into the logistics space aligns with sustained market demand for such assets. Retail properties, carefully selected for their operational criticality, comprised another 22%. Geographically, the company maintained its transatlantic footprint, with 69% of the investment volume located in the U.S. and 26% in Europe, providing crucial diversification.

A significant transaction in the fourth quarter highlighted this strategy: the $322 million acquisition of a portfolio of 10 fitness facilities leased to Life Time Fitness. This deal, part of a $625 million fourth-quarter investment push, elevated the premium fitness operator to become W. P. Carey's third-largest tenant by annualized base rent (ABR), signaling strong confidence in the high-end wellness and fitness sector.

The Art of Accretive Capital Recycling

Just as impressive as the record investment volume was the financial engine that powered it. W. P. Carey funded its acquisitions primarily through the strategic disposition of non-core assets, a process known as capital recycling. The company generated $1.5 billion in gross proceeds from property sales throughout 2025.

The centerpiece of this disposition strategy was the near-complete exit from the self-storage operating market. The company sold 63 self-storage properties for gross proceeds of $785 million, with $325 million of that coming in the fourth quarter alone. This deliberate move simplifies the company's business model, allowing it to concentrate on its core net lease competency. W. P. Carey plans to sell its remaining 11 self-storage assets in the first half of 2026, marking a full exit from the segment.

Crucially, these sales were highly accretive. The company reported that it generated a spread of approximately 150 basis points between the yield on the assets it sold and the initial cap rates of the new properties it acquired. This means W. P. Carey was not just swapping assets but was actively upgrading its portfolio's return profile, a move that directly benefits its bottom line and shareholder value.

To further bolster its financial flexibility, the company adeptly used the capital markets. During 2025, it sold 6.3 million shares of common stock under its at-the-market (ATM) program, subject to forward sale agreements. This generated approximately $423 million in gross proceeds, which remain available for settlement. This "forward equity" acts as a ready source of capital, allowing the company to fund future deals without being subject to market volatility at the time of closing.

A Fortified Portfolio and Confident 2026 Outlook

The strategic repositioning and active management in 2025 have resulted in a healthier, more focused portfolio. Tenant credit performance was stronger than anticipated, with rent losses from credit events totaling about $6 million for the year, significantly below the company's internal assumption of $10 million. This demonstrates the resilience of its diversified tenant base and the quality of its real estate. The company also successfully managed its exposure to the German DIY retailer Hellweg, which remained current on rent and, through re-tenanting and sales, was reduced to the company's 17th largest tenant by year-end.

This strong performance has set a confident tone for the year ahead. Jason Fox, W. P. Carey’s Chief Executive Officer, highlighted the company's strong footing entering the new year.

"2025 marked a record high year for investment volume, closing $2.1 billion of deals funded primarily through accretive sales of non-core assets, highlighted by our effective exit from operating self-storage," Fox stated in the announcement.

Looking ahead, Fox expressed optimism, citing a "strong pipeline of high-quality opportunities to start 2026." He emphasized that the company's capital needs for the year are largely pre-funded. "With a strong pipeline of high-quality opportunities to start 2026 and the vast majority of our anticipated equity needs for the year already accounted for — including around $420 million of forward equity, several-hundred million dollars of planned accretive asset sales and $250 to $300 million of expected retained cash flow — we're well-positioned to continue delivering attractive AFFO growth."

This forward-looking capital strategy, combining proceeds from planned sales with retained cash and already-secured equity, provides W. P. Carey with significant firepower and flexibility to execute its strategy in 2026, regardless of potential shifts in the capital markets. The firm's actions in 2025 serve as a clear indicator of its commitment to disciplined growth and portfolio optimization, positioning it as a key player to watch in the evolving net lease landscape.