W P Carey Inc

W. P. Carey Inc. raised its full-year AFFO guidance and quarterly dividend after reporting second-quarter 2026 revenue of US$461.06 million and net income of US$185.39 million. Management lifted AFFO guidance to a range of US$5.19 to US$5.27 per diluted share, supported by US$1.30 billion of year-to-date investments and a higher investment volume outlook, while also increasing the quarterly dividend to US$0.94 per share. The quarter included real estate impairment charges of US$79.42 million, a sharp increase that sharpens focus on tenant credit risk and single-tenant exposure. Basic earnings per share from continuing operations came in at US$0.82.

W.P. Carey reported second-quarter 2026 adjusted funds from operations of $1.34 per share, beating the Zacks Consensus Estimate by 2.3% and rising 4.7% from a year ago. Lease revenues increased 12.5% to $409.66 million, driven by net investment activity that reached $706.5 million in the quarter and $1.3 billion year-to-date. The net-lease portfolio of 1,748 properties remained 98.5% occupied with a weighted-average remaining lease term of 12.2 years. Management raised its full-year 2026 AFFO guidance to a range of $5.19 to $5.27 per share, up from $5.16 to $5.26, and increased its investment-volume assumption to $1.7 billion to $2.1 billion. The company ended the quarter with $2.74 billion in liquidity and a net debt to annualized adjusted EBITDA ratio of 5.5 times.

W.P. Carey's diversified net-lease portfolio and steady dividend growth support its long-term investment case, though competitive bidding and a large debt burden pose challenges. As of March 31, 2026, the company owned 1,703 properties with 98.1% occupancy and a weighted average lease term of 12.1 years, while nearly all leases include contractual rent escalations that drove 2.4% same-store contractual rent growth in the first quarter. Management expects 2026 investment volume of $1.5 billion to $2 billion, and the quarterly dividend was raised to 94 cents per share in June 2026, backed by a 71.5% AFFO payout ratio and 2026 AFFO guidance of $5.16 to $5.26 per share. However, acquisitions completed through April 28, 2026, carried an average cap rate of 7.2%, and total consolidated debt stood at $8.75 billion as of March 31, 2026, with first-quarter interest expense rising 14% year over year to $78.5 million. Shares have gained 22.3% over the past year, outperforming the industry's 12.8% growth.

Five dividend stocks currently offer yields above 5% with strong cash-flow coverage, according to 24/7 Wall St. Gaming and Leisure Properties yields 7.3% after raising its quarterly dividend to 82 cents per share, supported by first-quarter AFFO of $1.02 per share and full-year guidance of $4.08 to $4.12. VICI Properties yields nearly 7% with a forward annualized dividend of $1.80, backed by 2026 AFFO guidance of $2.42 to $2.45 per share and an eighth consecutive annual dividend increase. W. P. Carey yields just over 5% after hiking its quarterly dividend to 94 cents, with 2026 AFFO guidance of $5.13 to $5.23 per share and 48% of leases linked to CPI. Enbridge yields just over 5% and marked its 31st straight annual dividend increase, supported by 2026 distributable cash flow guidance of C$5.70 to C$6.10 per share and a C$40 billion secured growth backlog. Getty Realty yields about 5.6% with 2026 AFFO guidance of $2.48 to $2.50 per share, comfortably covering its dividend, and enters the year with over $500 million in liquidity.