EX-99.2 3 wpc2023q2supplementalexh992.htm EX-99.2

Exhibit 99.2

W. P. Carey Inc.

Supplemental Information

Second Quarter 2023

---

Terms and Definitions

As used in this supplemental package, the terms “W. P. Carey,” “WPC,” “we,” “us” and “our” include W. P. Carey Inc., its consolidated subsidiaries and its predecessors, unless otherwise indicated. Other terms and definitions are as follows:

REIT			Real estate investment trust
CPA:18 – Global			Corporate Property Associates 18 – Global Incorporated
CESH			Carey European Student Housing Fund I, L.P.
Managed Programs			CPA:18 – Global (prior to the CPA:18 Merger on August 1, 2022) and CESH
U.S.			United States
ABR			Contractual minimum annualized base rent
SEC			Securities and Exchange Commission
NAREIT			National Association of Real Estate Investment Trusts (an industry trade group)
EUR			Euro
EURIBOR			Euro Interbank Offered Rate
SOFR			Secured Overnight Financing Rate
SONIA			Sterling Overnight Index Average
TIBOR			Tokyo Interbank Offered Rate
CPA:18 Merger			Our merger with CPA:18 – Global, which was completed on August 1, 2022

Important Note Regarding Non-GAAP Financial Measures

This supplemental package includes certain “non-GAAP” supplemental measures that are not defined by generally accepted accounting principles (“GAAP”), including funds from operations (“FFO”); adjusted funds from operations (“AFFO”); earnings before interest, taxes, depreciation and amortization (“EBITDA”); adjusted EBITDA; pro rata cash net operating income (“pro rata cash NOI”); normalized pro rata cash NOI; same-store pro rata rental income; cash interest expense; and cash interest expense coverage ratio. FFO is a non-GAAP measure defined by NAREIT. Reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures are provided within this supplemental package. In addition, refer to the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of these non-GAAP financial measures and other metrics.

Amounts may not sum to totals due to rounding.

---

W. P. Carey Inc.

Supplemental Information – Second Quarter 2023

Table of Contents

Overview
Summary Metrics			1
Components of Net Asset Value			3
Financial Results
Statements of Income – Last Five Quarters
Consolidated			5
Real Estate			6
Investment Management			7
FFO and AFFO – Last Five Quarters
Consolidated			8
Real Estate			9
Investment Management			10
Elements of Pro Rata Statement of Income and AFFO Adjustments			11
Capital Expenditures			12
Balance Sheets and Capitalization
Consolidated Balance Sheets			14
Capitalization			15
Debt Overview			16
Debt Maturity			17
Senior Unsecured Notes			18
Real Estate
Investment Activity
Capital Investments and Commitments			20
Investment Volume			21
Dispositions			22
Joint Ventures			23
Top Ten Tenants			24
Diversification by Property Type			25
Diversification by Tenant Industry			26
Diversification by Geography			27
Contractual Rent Increases			28
Same-Store Analysis			29
Leasing Activity			32
Lease Expirations			33
Self Storage Operating Properties Portfolio			34
Appendix
Normalized Pro Rata Cash NOI			36
Adjusted EBITDA – Last Five Quarters
Consolidated			38
Real Estate			39
Investment Management			40
Disclosures Regarding Non-GAAP and Other Metrics			41

---

W. P. Carey Inc.

Overview – Second Quarter 2023

Summary Metrics

As of or for the three months ended June 30, 2023.

Financial Results
															Real Estate Segment
																					Total (a)
Revenues, including reimbursable costs – consolidated ($000s)															$	452,151											$	452,578
Net income attributable to W. P. Carey ($000s)															144,686												144,620
Net income attributable to W. P. Carey per diluted share															0.67												0.67
Normalized pro rata cash NOI from real estate ($000s) (b) (c)															389,661												389,661
Adjusted EBITDA ($000s) (b) (c)															376,229												376,532
AFFO attributable to W. P. Carey ($000s) (b) (c)															292,896												293,306
AFFO attributable to W. P. Carey per diluted share (b) (c)															1.36												1.36
Dividends declared per share – current quarter																											1.069
Dividends declared per share – current quarter annualized																											4.276
Dividend yield – annualized, based on quarter end share price of $67.56																											6.3		%
Dividend payout ratio – for the six months ended June 30, 2023 (d)																											79.7		%
Balance Sheet and Capitalization
Equity market capitalization – based on quarter end share price of $67.56 ($000s)																											$	14,451,163
Pro rata net debt ($000s) (e)																											8,558,583
Enterprise value ($000s)																											23,009,746
Total consolidated debt ($000s)																											8,615,925
Gross assets ($000s) (f)																											20,846,864
Liquidity ($000s) (g)																											1,857,727
Pro rata net debt to enterprise value (c)																											37.2		%
Pro rata net debt to adjusted EBITDA (annualized) (b) (c)																											5.7x
Total consolidated debt to gross assets																											41.3		%
Total consolidated secured debt to gross assets																											4.8		%
Cash interest expense coverage ratio (b) (c)																											5.7x
Weighted-average interest rate (c)																											3.3		%
Weighted-average debt maturity (years) (c)																											3.9
Moody's Investors Service – issuer rating																											Baa1 (stable)
Standard & Poor's Ratings Services – issuer rating																											BBB+ (stable)
Real Estate Portfolio (Pro Rata)
ABR – total portfolio ($000s) (h)																											$	1,469,750
ABR – unencumbered portfolio (% / $000s) (h) (i)															90.3% /												$	1,327,621
Number of net-leased properties																											1,475
Number of operating properties (j)																											100
Number of tenants – net-leased properties																											398
ABR from top ten tenants as a % of total ABR – net-leased properties																											19.0		%
ABR from investment grade tenants as a % of total ABR – net-leased properties (k)																											29.9		%
Contractual same-store growth (l)																											4.3		%
Net-leased properties – square footage (millions)																											180.0
Occupancy – net-leased properties																											99.0		%
Weighted-average lease term (years)																											11.2
Investment volume – current quarter ($000s)																											$	760,695
Dispositions – current quarter ($000s)																											5,496
Maximum commitment for capital investments and commitments expected to be completed during 2023 ($000s)																											51,381
Construction loan funding expected to be completed during 2023 ($000s)																											45,042
Total capital investments, commitments and construction loan funding expected to be completed during 2023 ($000s)																					96,423

________

						Investing for the Long Run® | 1

---

W. P. Carey Inc.

Overview – Second Quarter 2023

(a)Includes immaterial amounts from our Investment Management segment.

(b)Normalized pro rata cash NOI, adjusted EBITDA, AFFO and cash interest expense coverage ratio are non-GAAP measures. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of our non-GAAP measures and for details on how certain non-GAAP measures are calculated.

(c)Presented on a pro rata basis. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata.

(d)Represents dividends declared per share divided by AFFO per diluted share on a year-to-date basis.

(e)Represents total pro rata debt outstanding less consolidated cash and cash equivalents. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata.

(f)Gross assets represent consolidated total assets before accumulated depreciation on buildings and improvements. Gross assets are net of accumulated amortization on in-place lease intangible assets of $1.1 billion and above-market rent intangible assets of $509.2 million.

(g)Represents (i) availability under our Senior Unsecured Credit Facility (net of amounts reserved for standby letters of credit), (ii) consolidated cash and cash equivalents, and (iii) available proceeds under our equity forward sale agreements.

(h)See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of ABR.

(i)Represents ABR from properties unencumbered by non-recourse mortgage debt.

(j)Comprised of 85 self-storage properties, 13 hotels and two student housing properties.

(k)Percentage of portfolio is based on ABR, as of June 30, 2023. Includes tenants or guarantors with investment grade ratings (21.9%) and subsidiaries of non-guarantor parent companies with investment grade ratings (8.0%). Investment grade refers to an entity with a rating of BBB- or higher from Standard & Poor’s Ratings Services or Baa3 or higher from Moody’s Investors Service. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of ABR.

(l)See the Same-Store Analysis section for a description of contractual same-store growth.

						Investing for the Long Run® | 2

---

W. P. Carey Inc.

Overview – Second Quarter 2023

Components of Net Asset Value

Dollars in thousands, except per share amounts.

Normalized Pro Rata Cash NOI (a) (b)									Three Months Ended Jun. 30, 2023						Year-to-Date Jun. 30, 2023
Net lease properties									$	364,407					$	700,867
Self-storage and other operating properties (c)									25,254						46,376
Total normalized pro rata cash NOI (a) (b)									$	389,661					$	747,243
Balance Sheet – Selected Information (Consolidated Unless Otherwise Stated)															As of Jun. 30, 2023
Assets
Book value of real estate excluded from normalized pro rata cash NOI (d)															$	157,325
Cash and cash equivalents															204,103
Las Vegas retail complex construction loan (e)															220,088
Other secured loans receivable, net															39,250
Other assets, net:
Investment in shares of Lineage Logistics (a cold storage REIT)															$	404,921
Straight-line rent adjustments															328,642
Restricted cash, including escrow															82,184
Deferred charges															63,821
Office lease right-of-use assets, net															56,372
Non-rent tenant and other receivables															51,482
Taxes receivable															45,958
Securities and derivatives															29,459
Prepaid expenses															28,615
Deferred income taxes															19,213
Leasehold improvements, furniture and fixtures															14,431
Rent receivables (f)															4,774
Due from affiliates															674
Other															24,399
Total other assets, net															$	1,154,945
Liabilities
Total pro rata debt outstanding (b) (g)															$	8,762,686
Dividends payable															232,461
Deferred income taxes															179,449
Accounts payable, accrued expenses and other liabilities:
Accounts payable and accrued expenses															$	152,454
Prepaid and deferred rents															151,931
Operating lease liabilities															145,564
Tenant security deposits															90,942
Accrued taxes payable															47,201
Other															55,738
Total accounts payable, accrued expenses and other liabilities															$	643,830

________

(a)Normalized pro rata cash NOI is a non-GAAP measure. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of our non-GAAP measures and for details on how they are calculated.

(b)Presented on a pro rata basis. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata.

(c)Other operating properties include 13 hotels and two student housing properties.

(d)Represents the value of real estate not included in normalized pro rata cash NOI, such as vacant assets, in-progress build-to-suit properties, real estate under construction for certain expansion projects at existing properties and a common equity interest in the Harmon Retail Corner in Las Vegas.

(e)Represents a construction loan for a retail complex in Las Vegas, Nevada, which is included in Equity method investments (as an equity method investment in real estate) on our consolidated balance sheets. See the Investment Activity – Investment Volume section for additional information about this investment.

(f)Comprised of rent receivables that were substantially collected as of the date of this report.

(g)Excludes unamortized discount, net totaling $34.7 million and unamortized deferred financing costs totaling $23.9 million as of June 30, 2023.

						Investing for the Long Run® | 3

---

W. P. Carey Inc.

Financial Results

Second Quarter 2023

						Investing for the Long Run® | 4

---

W. P. Carey Inc.

Financial Results – Second Quarter 2023

Consolidated Statements of Income – Last Five Quarters

In thousands, except share and per share amounts.

			Three Months Ended
			Jun. 30, 2023						Mar. 31, 2023						Dec. 31, 2022						Sep. 30, 2022						Jun. 30, 2022
Revenues
Real Estate:
Lease revenues			$	369,124					$	352,336					$	347,636					$	331,902					$	314,354
Income from finance leases and loans receivable			27,311						20,755						17,472						20,637						17,778
Operating property revenues			50,676						40,886						28,951						21,350						5,064
Other lease-related income			5,040						13,373						8,083						8,192						2,591
			452,151						427,350						402,142						382,081						339,787
Investment Management:
Asset management revenue			303						339						383						1,197						3,467
Reimbursable costs from affiliates			124						101						104						344						1,143
			427						440						487						1,541						4,610
			452,578						427,790						402,629						383,622						344,397
Operating Expenses
Depreciation and amortization			143,548						156,409						140,749						132,181						115,080
Operating property expenses			26,919						21,249						11,719						9,357						3,191
General and administrative			24,788						26,448						22,728						22,299						20,841
Reimbursable tenant costs			20,523						21,976						21,084						18,874						16,704
Stock-based compensation expense			8,995						7,766						9,739						5,511						9,758
Property expenses, excluding reimbursable tenant costs			5,371						12,772						13,879						11,244						11,851
Merger and other expenses			1,419						24						2,058						17,667						1,984
Reimbursable costs from affiliates			124						101						104						344						1,143
Impairment charges — real estate			—						—						12,734						—						6,206
Impairment charges — Investment Management goodwill (a)			—						—						—						29,334						—
			231,687						246,745						234,794						246,811						186,758
Other Income and Expenses
Interest expense			(75,488)						(67,196)						(67,668)						(59,022)						(46,417)
Non-operating income (b)			4,509						4,626						6,526						9,263						5,974
Earnings from equity method investments			4,355						5,236						6,032						11,304						7,401
Gain (loss) on sale of real estate, net (c)			1,808						177,749						5,845						(4,736)						31,119
Other gains and (losses) (d)			(1,366)						8,100						97,059						(15,020)						(21,746)
Gain on change in control of interests (e)			—						—						—						33,931						—
			(66,182)						128,515						47,794						(24,280)						(23,669)
Income before income taxes			154,709						309,560						215,629						112,531						133,970
Provision for income taxes			(10,129)						(15,119)						(6,126)						(8,263)						(6,252)
Net Income			144,580						294,441						209,503						104,268						127,718
Net loss (income) attributable to noncontrolling interests			40						(61)						35						660						(40)
Net Income Attributable to W. P. Carey			$	144,620					$	294,380					$	209,538					$	104,928					$	127,678
Basic Earnings Per Share			$	0.67					$	1.39					$	1.00					$	0.52					$	0.66
Diluted Earnings Per Share			$	0.67					$	1.39					$	1.00					$	0.51					$	0.66
Weighted-Average Shares Outstanding
Basic			215,075,114						211,951,930						209,281,888						203,093,553						194,019,451
Diluted			215,184,485						212,345,047						209,822,650						204,098,116						194,763,695
Dividends Declared Per Share			$	1.069					$	1.067					$	1.065					$	1.061					$	1.059

________

(a)Amount for the three months ended September 30, 2022 represents an impairment charge recognized on goodwill within our Investment Management segment, since future Investment Management cash flows are expected to be minimal.

(b)Amount for the three months ended June 30, 2023 is comprised of realized gains on foreign currency exchange derivatives of $3.7 million and interest income on deposits of $0.8 million.

(c)Amount for the three months ended March 31, 2023 includes a gain on sale of real estate of $176.2 million recognized upon a related party of a tenant’s notice of its intention to repurchase a portfolio of 78 net-lease self-storage properties and the reclassification of the investment to net investments in sales-type leases.

(d)Amount for the three months ended June 30, 2023 is primarily comprised of net losses on foreign currency exchange rate movements of $(1.1) million.

(e)Amount for the three months ended September 30, 2022 represents gains recognized on (i) the remaining interests in four investments acquired in the CPA:18 Merger, which we had previously accounted for under the equity method, and (ii) our previously held interest in shares of CPA:18 – Global common stock in connection with the CPA:18 Merger.

						Investing for the Long Run® | 5

---

W. P. Carey Inc.

Financial Results – Second Quarter 2023

Statements of Income, Real Estate – Last Five Quarters

In thousands, except share and per share amounts.

			Three Months Ended
			Jun. 30, 2023						Mar. 31, 2023						Dec. 31, 2022						Sep. 30, 2022						Jun. 30, 2022
Revenues
Lease revenues			$	369,124					$	352,336					$	347,636					$	331,902					$	314,354
Income from finance leases and loans receivable			27,311						20,755						17,472						20,637						17,778
Operating property revenues			50,676						40,886						28,951						21,350						5,064
Other lease-related income			5,040						13,373						8,083						8,192						2,591
			452,151						427,350						402,142						382,081						339,787
Operating Expenses
Depreciation and amortization			143,548						156,409						140,749						132,181						115,080
Operating property expenses			26,919						21,249						11,719						9,357						3,191
General and administrative			24,788						26,448						22,728						22,299						20,841
Reimbursable tenant costs			20,523						21,976						21,084						18,874						16,704
Stock-based compensation expense			8,995						7,766						9,739						5,511						9,758
Property expenses, excluding reimbursable tenant costs			5,371						12,772						13,879						11,244						11,851
Merger and other expenses			1,419						24						2,058						17,667						1,984
Impairment charges — real estate			—						—						12,734						—						6,206
			231,563						246,644						234,690						217,133						185,615
Other Income and Expenses
Interest expense			(75,488)						(67,196)						(67,668)						(59,022)						(46,417)
Non-operating income			4,509						4,613						6,508						9,264						5,975
Earnings (losses) from equity method investments in real estate			4,355						5,236						6,032						6,447						4,529
Gain (loss) on sale of real estate, net (a)			1,808						177,749						5,845						(4,736)						31,119
Other gains and (losses) (b)			(890)						7,586						96,846						(13,960)						(20,155)
Gain on change in control of interests (c)			—						—						—						11,405						—
			(65,706)						127,988						47,563						(50,602)						(24,949)
Income before income taxes			154,882						308,694						215,015						114,346						129,223
Provision for income taxes			(10,236)						(15,402)						(4,908)						(3,631)						(5,955)
Net Income from Real Estate			144,646						293,292						210,107						110,715						123,268
Net loss (income) attributable to noncontrolling interests			40						(61)						35						660						(40)
Net Income from Real Estate Attributable to W. P. Carey			$	144,686					$	293,231					$	210,142					$	111,375					$	123,228
Basic Earnings Per Share			$	0.67					$	1.38					$	1.00					$	0.55					$	0.64
Diluted Earnings Per Share			$	0.67					$	1.38					$	1.00					$	0.54					$	0.64
Weighted-Average Shares Outstanding
Basic			215,075,114						211,951,930						209,281,888						203,093,553						194,019,451
Diluted			215,184,485						212,345,047						209,822,650						204,098,116						194,763,695

________

(a)Amount for the three months ended March 31, 2023 includes a gain on sale of real estate of $176.2 million recognized upon a related party of a tenant’s notice of its intention to repurchase a portfolio of 78 net-lease self-storage properties and the reclassification of the investment to net investments in sales-type leases.

(b)Amount for the three months ended June 30, 2023 is primarily comprised of net losses on foreign currency exchange rate movements of $(1.1) million.

(c)Amount for the three months ended September 30, 2022 represents a gain recognized on the remaining interests in four investments acquired in the CPA:18 Merger, which we had previously accounted for under the equity method.

						Investing for the Long Run® | 6

---

W. P. Carey Inc.

Financial Results – Second Quarter 2023

Statements of Income, Investment Management – Last Five Quarters

In thousands, except share and per share amounts.

			Three Months Ended
			Jun. 30, 2023						Mar. 31, 2023						Dec. 31, 2022						Sep. 30, 2022						Jun. 30, 2022
Revenues
Asset management revenue			$	303					$	339					$	383					$	1,197					$	3,467
Reimbursable costs from affiliates			124						101						104						344						1,143
			427						440						487						1,541						4,610
Operating Expenses
Reimbursable costs from affiliates			124						101						104						344						1,143
Impairment charges — Investment Management goodwill (a)			—						—						—						29,334						—
			124						101						104						29,678						1,143
Other Income and Expenses
Other gains and (losses)			(476)						514						213						(1,060)						(1,591)
Non-operating income (loss)			—						13						18						(1)						(1)
Gain on change in control of interests (b)			—						—						—						22,526						—
Earnings from equity method investments in the Managed Programs			—						—						—						4,857						2,872
			(476)						527						231						26,322						1,280
(Loss) income before income taxes			(173)						866						614						(1,815)						4,747
Benefit from (provision for) income taxes			107						283						(1,218)						(4,632)						(297)
Net (Loss) Income from Investment Management Attributable to W. P. Carey			$	(66)					$	1,149					$	(604)					$	(6,447)					$	4,450
Basic Earnings (Loss) Per Share			$	0.00					$	0.01					$	0.00					$	(0.03)					$	0.02
Diluted Earnings (Loss) Per Share			$	0.00					$	0.01					$	0.00					$	(0.03)					$	0.02
Weighted-Average Shares Outstanding
Basic			215,075,114						211,951,930						209,281,888						203,093,553						194,019,451
Diluted			215,184,485						212,345,047						209,822,650						204,098,116						194,763,695

________

(a)Amount for the three months ended September 30, 2022 represents an impairment charge recognized on goodwill within our Investment Management segment, since future Investment Management cash flows are expected to be minimal.

(b)Amount for the three months ended September 30, 2022 represents a gain recognized on our previously held interest in shares of CPA:18 – Global common stock in connection with the CPA:18 Merger.

						Investing for the Long Run® | 7

---

W. P. Carey Inc.

Financial Results – Second Quarter 2023

FFO and AFFO, Consolidated – Last Five Quarters

In thousands, except share and per share amounts.

			Three Months Ended
			Jun. 30, 2023						Mar. 31, 2023						Dec. 31, 2022						Sep. 30, 2022						Jun. 30, 2022
Net income attributable to W. P. Carey			$	144,620					$	294,380					$	209,538					$	104,928					$	127,678
Adjustments:
Depreciation and amortization of real property			142,932						155,868						140,157						131,628						114,333
(Gain) loss on sale of real estate, net (a)			(1,808)						(177,749)						(5,845)						4,736						(31,119)
Impairment charges — real estate			—						—						12,734						—						6,206
Gain on change in control of interests (b)			—						—						—						(33,931)						—
Impairment charges — Investment Management goodwill (c)			—						—						—						29,334						—
Proportionate share of adjustments to earnings from equity method investments (d)			2,883						2,606						2,296						2,242						2,934
Proportionate share of adjustments for noncontrolling interests (e)			(268)						(299)						(294)						(189)						(4)
Total adjustments			143,739						(19,574)						149,048						133,820						92,350
FFO (as defined by NAREIT) Attributable to W. P. Carey (f)			288,359						274,806						358,586						238,748						220,028
Adjustments:
Straight-line and other leasing and financing adjustments			(19,086)						(15,050)						(14,766)						(14,326)						(14,492)
Stock-based compensation			8,995						7,766						9,739						5,511						9,758
Above- and below-market rent intangible lease amortization, net			8,824						10,861						8,652						11,186						10,548
Amortization of deferred financing costs			5,904						4,940						5,705						5,223						3,147
Tax (benefit) expense – deferred and other			(2,723)						4,366						(3,325)						1,163						(355)
Merger and other expenses			1,419						24						2,058						17,667						1,984
Other (gains) and losses (g)			1,366						(8,100)						(97,059)						15,020						21,746
Other amortization and non-cash items			527						472						490						359						530
Proportionate share of adjustments to earnings from equity method investments (d)			(255)						(926)						(319)						(2,156)						1,486
Proportionate share of adjustments for noncontrolling interests (e)			(24)						60						(85)						(673)						(6)
Total adjustments			4,947						4,413						(88,910)						38,974						34,346
AFFO Attributable to W. P. Carey (f)			$	293,306					$	279,219					$	269,676					$	277,722					$	254,374
Summary
FFO (as defined by NAREIT) attributable to W. P. Carey (f)			$	288,359					$	274,806					$	358,586					$	238,748					$	220,028
FFO (as defined by NAREIT) attributable to W. P. Carey per diluted share (f)			$	1.34					$	1.29					$	1.70					$	1.17					$	1.13
AFFO attributable to W. P. Carey (f)			$	293,306					$	279,219					$	269,676					$	277,722					$	254,374
AFFO attributable to W. P. Carey per diluted share (f)			$	1.36					$	1.31					$	1.29					$	1.36					$	1.31
Diluted weighted-average shares outstanding			215,184,485						212,345,047						209,822,650						204,098,116						194,763,695

________

(a)Amount for the three months ended March 31, 2023 includes a gain on sale of real estate of $176.2 million recognized upon a related party of a tenant’s notice of its intention to repurchase a portfolio of 78 net-lease self-storage properties and the reclassification of the investment to net investments in sales-type leases.

(b)Amount for the three months ended September 30, 2022 represents gains recognized on (i) the remaining interests in four investments acquired in the CPA:18 Merger, which we had previously accounted for under the equity method, and (ii) our previously held interest in shares of CPA:18 – Global common stock in connection with the CPA:18 Merger.

(c)Amount for the three months ended September 30, 2022 represents an impairment charge recognized on goodwill within our Investment Management segment, since future Investment Management cash flows are expected to be minimal.

(d)Equity income, including amounts that are not typically recognized for FFO and AFFO, is recognized within Earnings from equity method investments on the consolidated statements of income. This represents adjustments to equity income to reflect FFO and AFFO on a pro rata basis.

(e)Adjustments disclosed elsewhere in this reconciliation are on a consolidated basis. This adjustment reflects our FFO or AFFO on a pro rata basis.

(f)FFO and AFFO are non-GAAP measures. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of our non-GAAP measures.

(g)Amount for the three months ended June 30, 2023 is primarily comprised of net losses on foreign currency exchange rate movements of $(1.1) million.

						Investing for the Long Run® | 8

---

W. P. Carey Inc.

Financial Results – Second Quarter 2023

FFO and AFFO, Real Estate – Last Five Quarters

In thousands, except share and per share amounts.

			Three Months Ended
			Jun. 30, 2023						Mar. 31, 2023						Dec. 31, 2022						Sep. 30, 2022						Jun. 30, 2022
Net income from Real Estate attributable to W. P. Carey			$	144,686					$	293,231					$	210,142					$	111,375					$	123,228
Adjustments:
Depreciation and amortization of real property			142,932						155,868						140,157						131,628						114,333
(Gain) loss on sale of real estate, net (a)			(1,808)						(177,749)						(5,845)						4,736						(31,119)
Impairment charges — real estate			—						—						12,734						—						6,206
Gain on change in control of interests (b)			—						—						—						(11,405)						—
Proportionate share of adjustments to earnings from equity method investments (c)			2,883						2,606						2,296						2,242						2,934
Proportionate share of adjustments for noncontrolling interests (d)			(268)						(299)						(294)						(189)						(4)
Total adjustments			143,739						(19,574)						149,048						127,012						92,350
FFO (as defined by NAREIT) Attributable to W. P. Carey – Real Estate (e)			288,425						273,657						359,190						238,387						215,578
Adjustments:
Straight-line and other leasing and financing adjustments			(19,086)						(15,050)						(14,766)						(14,326)						(14,492)
Stock-based compensation			8,995						7,766						9,739						5,511						9,758
Above- and below-market rent intangible lease amortization, net			8,824						10,861						8,652						11,186						10,548
Amortization of deferred financing costs			5,904						4,940						5,705						5,223						3,147
Tax (benefit) expense – deferred and other			(2,723)						4,366						(3,862)						(2,789)						(324)
Merger and other expenses			1,419						24						2,058						17,667						1,984
Other (gains) and losses (f)			890						(7,586)						(96,846)						13,960						20,155
Other amortization and non-cash items			527						472						490						359						530
Proportionate share of adjustments to earnings from equity method investments (c)			(255)						(926)						(320)						(938)						368
Proportionate share of adjustments for noncontrolling interests (d)			(24)						60						(85)						(673)						(6)
Total adjustments			4,471						4,927						(89,235)						35,180						31,668
AFFO Attributable to W. P. Carey – Real Estate (e)			$	292,896					$	278,584					$	269,955					$	273,567					$	247,246
Summary
FFO (as defined by NAREIT) attributable to W. P. Carey – Real Estate (e)			$	288,425					$	273,657					$	359,190					$	238,387					$	215,578
FFO (as defined by NAREIT) attributable to W. P. Carey per diluted share – Real Estate (e)			$	1.34					$	1.29					$	1.70					$	1.17					$	1.11
AFFO attributable to W. P. Carey – Real Estate (e)			$	292,896					$	278,584					$	269,955					$	273,567					$	247,246
AFFO attributable to W. P. Carey per diluted share – Real Estate (e)			$	1.36					$	1.31					$	1.29					$	1.34					$	1.27
Diluted weighted-average shares outstanding			215,184,485						212,345,047						209,822,650						204,098,116						194,763,695

________

(a)Amount for the three months ended March 31, 2023 includes a gain on sale of real estate of $176.2 million recognized upon a related party of a tenant’s notice of its intention to repurchase a portfolio of 78 net-lease self-storage properties and the reclassification of the investment to net investments in sales-type leases.

(b)Amount for the three months ended September 30, 2022 represents a gain recognized on the remaining interests in four investments acquired in the CPA:18 Merger, which we had previously accounted for under the equity method.

(c)Equity income, including amounts that are not typically recognized for FFO and AFFO, is recognized within Earnings from equity method investments on the consolidated statements of income. This represents adjustments to equity income to reflect FFO and AFFO on a pro rata basis.

(d)Adjustments disclosed elsewhere in this reconciliation are on a consolidated basis. This adjustment reflects our FFO or AFFO on a pro rata basis.

(e)FFO and AFFO are non-GAAP measures. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of our non-GAAP measures.

(f)Amount for the three months ended June 30, 2023 is primarily comprised of net losses on foreign currency exchange rate movements of $(1.1) million.

						Investing for the Long Run® | 9

---

W. P. Carey Inc.

Financial Results – Second Quarter 2023

FFO and AFFO, Investment Management – Last Five Quarters

In thousands, except share and per share amounts.

			Three Months Ended
			Jun. 30, 2023						Mar. 31, 2023						Dec. 31, 2022						Sep. 30, 2022						Jun. 30, 2022
Net (loss) income from Investment Management attributable to W. P. Carey			$	(66)					$	1,149					$	(604)					$	(6,447)					$	4,450
Adjustments:
Impairment charges — Investment Management goodwill (a)			—						—						—						29,334						—
Gain on change in control of interests (b)			—						—						—						(22,526)						—
Total adjustments			—						—						—						6,808						—
FFO (as defined by NAREIT) Attributable to W. P. Carey – Investment Management (c)			(66)						1,149						(604)						361						4,450
Adjustments:
Other (gains) and losses			476						(514)						(213)						1,060						1,591
Tax expense (benefit) – deferred and other			—						—						537						3,952						(31)
Proportionate share of adjustments to earnings from equity method investments (d)			—						—						1						(1,218)						1,118
Total adjustments			476						(514)						325						3,794						2,678
AFFO Attributable to W. P. Carey – Investment Management (c)			$	410					$	635					$	(279)					$	4,155					$	7,128
Summary
FFO (as defined by NAREIT) attributable to W. P. Carey – Investment Management (c)			$	(66)					$	1,149					$	(604)					$	361					$	4,450
FFO (as defined by NAREIT) attributable to W. P. Carey per diluted share – Investment Management (c)			$	0.00					$	0.00					$	0.00					$	0.00					$	0.02
AFFO attributable to W. P. Carey – Investment Management (c)			$	410					$	635					$	(279)					$	4,155					$	7,128
AFFO attributable to W. P. Carey per diluted share – Investment Management (c)			$	0.00					$	0.00					$	0.00					$	0.02					$	0.04
Diluted weighted-average shares outstanding			215,184,485						212,345,047						209,822,650						204,098,116						194,763,695

________

(a)Amount for the three months ended September 30, 2022 represents an impairment charge recognized on goodwill within our Investment Management segment, since future Investment Management cash flows are expected to be minimal.

(b)Amount for the three months ended September 30, 2022 represents a gain recognized on our previously held interest in shares of CPA:18 – Global common stock in connection with the CPA:18 Merger.

(c)FFO and AFFO are non-GAAP measures. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of our non-GAAP measures.

(d)Equity income, including amounts that are not typically recognized for FFO and AFFO, is recognized within Earnings from equity method investments on the consolidated statements of income. This represents adjustments to equity income to reflect FFO and AFFO on a pro rata basis.

						Investing for the Long Run® | 10

---

W. P. Carey Inc.

Financial Results – Second Quarter 2023

Elements of Pro Rata Statement of Income and AFFO Adjustments

In thousands. For the three months ended June 30, 2023.

We believe that the table below is useful for investors to help them better understand our business by illustrating the impact of each of our AFFO adjustments on our GAAP statement of income line items. This presentation is not an alternative to the GAAP statement of income, nor is AFFO an alternative to net income as determined by GAAP.

			Equity Method Investments (a)						Noncontrolling Interests (b)						AFFO Adjustments
Revenues
Real Estate:
Lease revenues			$	4,412					$	(387)					$	(12,519)		(c)
Income from finance leases and loans receivable			—						—						494
Operating property revenues:
Hotel revenues			—						—						—
Self-storage revenues			2,392						—						—
Student housing revenues			—						(143)						—
Other lease-related income			6						—						—
Investment Management:
Asset management revenue			—						—						—
Reimbursable costs from affiliates			—						—						—
Operating Expenses
Depreciation and amortization			2,728						(268)						(145,480)			(d)
Operating property expenses:
Hotel expenses			—						—						—
Self-storage expenses			841						—						(28)
Student housing expenses			—						(61)						—
General and administrative			—						—						—
Reimbursable tenant costs			265						(63)						—
Stock-based compensation expense			—						—						(8,995)			(e)
Property expenses, excluding reimbursable tenant costs			117						(24)						(409)			(e)
Merger and other expenses			—						—						(1,419)
Reimbursable costs from affiliates			—						—						—
Other Income and Expenses
Interest expense			(395)						92						5,902			(f)
Non-operating income			21						(4)						—
Earnings from equity method investments:
Income related to joint ventures			(2,481)						—						1,602			(g)
Gain on sale of real estate, net			—						—						(1,808)
Other gains and (losses)			64						38						1,263			(h)
Provision for income taxes			(68)						(58)						(2,579)			(i)
Net income attributable to noncontrolling interests			—						46						—

________

(a)Represents the break-out by line item of amounts recorded in Earnings from equity method investments.

(b)Represents the break-out by line item of amounts recorded in Net income attributable to noncontrolling interests.

(c)Represents the reversal of amortization of above- or below-market lease intangibles of $8.8 million and the elimination of non-cash amounts related to straight-line rent and other of $21.3 million.

(d)Adjustment is a non-cash adjustment excluding corporate depreciation and amortization.

(e)Adjustment to exclude a non-cash item.

(f)Represents the elimination of non-cash components of interest expense, such as deferred financing costs, debt premiums and discounts.

(g)Adjustments to include our pro rata share of AFFO adjustments from equity method investments.

(h)Represents eliminations of gains (losses) related to the extinguishment of debt, unrealized gains (losses) on foreign currency exchange rate movements, gains (losses) on marketable securities, non-cash allowance for credit losses on loans receivable and finance leases, and other items.

(i)Primarily represents the elimination of deferred taxes.

						Investing for the Long Run® | 11

---

W. P. Carey Inc.

Financial Results – Second Quarter 2023

Capital Expenditures

In thousands. For the three months ended June 30, 2023.

Tenant Improvements and Leasing Costs
Tenant improvements			$	3,394
Leasing costs			4,550
Tenant Improvements and Leasing Costs			7,944
Maintenance Capital Expenditures
Net-lease properties			452
Operating properties			1,061
Maintenance Capital Expenditures			1,513
Total: Tenant Improvements and Leasing Costs, and Maintenance Capital Expenditures			$	9,457
Non-Maintenance Capital Expenditures
Net-lease properties			$	7
Operating properties			—
Non-Maintenance Capital Expenditures			$	7
Other Capital Expenditures
Net-lease properties			$	683
Operating properties			—
Other Capital Expenditures			$	683

						Investing for the Long Run® | 12

---

W. P. Carey Inc.

Balance Sheets and Capitalization

Second Quarter 2023

						Investing for the Long Run® | 13

---

W. P. Carey Inc.

Balance Sheets and Capitalization – Second Quarter 2023

Consolidated Balance Sheets

In thousands, except share and per share amounts.

			June 30, 2023						December 31, 2022
Assets
Investments in real estate:
Land, buildings and improvements — net lease and other			$	13,563,837					$	13,338,857
Land, buildings and improvements — operating properties			1,334,501						1,095,892
Net investments in finance leases and loans receivable			1,222,439						771,761
In-place lease intangible assets and other			2,748,013						2,659,750
Above-market rent intangible assets			806,619						833,751
Investments in real estate			19,675,409						18,700,011
Accumulated depreciation and amortization (a)			(3,378,385)						(3,269,057)
Assets held for sale, net			43,002						57,944
Net investments in real estate			16,340,026						15,488,898
Equity method investments			340,285						327,502
Cash and cash equivalents			204,103						167,996
Other assets, net			1,154,945						1,080,227
Goodwill			1,036,966						1,037,412
Total assets			$	19,076,325					$	18,102,035
Liabilities and Equity
Debt:
Senior unsecured notes, net			$	5,978,294					$	5,916,400
Unsecured term loans, net			1,113,491						552,539
Unsecured revolving credit facility			528,705						276,392
Non-recourse mortgages, net			995,435						1,132,417
Debt, net			8,615,925						7,877,748
Accounts payable, accrued expenses and other liabilities			643,830						623,843
Below-market rent and other intangible liabilities, net			157,728						184,584
Deferred income taxes			179,449						178,959
Dividends payable			232,461						228,257
Total liabilities			9,829,393						9,093,391
Preferred stock, $0.001 par value, 50,000,000 shares authorized; none issued			—						—
Common stock, $0.001 par value, 450,000,000 shares authorized; 213,901,170 and 210,620,949 shares, respectively, issued and outstanding			214						211
Additional paid-in capital			11,959,060						11,706,836
Distributions in excess of accumulated earnings			(2,510,816)						(2,486,633)
Deferred compensation obligation			62,046						57,012
Accumulated other comprehensive loss			(279,931)						(283,780)
Total stockholders' equity			9,230,573						8,993,646
Noncontrolling interests			16,359						14,998
Total equity			9,246,932						9,008,644
Total liabilities and equity			$	19,076,325					$	18,102,035

________

(a)Includes $1.8 billion and $1.7 billion of accumulated depreciation on buildings and improvements as of June 30, 2023 and December 31, 2022, respectively, and $1.6 billion of accumulated amortization on lease intangibles as of both June 30, 2023 and December 31, 2022.

						Investing for the Long Run® | 14

---

W. P. Carey Inc.

Balance Sheets and Capitalization – Second Quarter 2023

Capitalization

In thousands, except share and per share amounts. As of June 30, 2023.

Description												Shares						Share Price						Market Value
Equity
Common equity												213,901,170						$	67.56					$	14,451,163
Preferred equity																								—
Total Equity Market Capitalization																								14,451,163
																								Outstanding Balance (a)
Pro Rata Debt
Non-recourse mortgages																								1,091,262
Unsecured term loans (due February 20, 2025)																								575,444
Unsecured term loans (due April 24, 2026)																								543,300
Unsecured revolving credit facility (due February 20, 2025)																								528,705
Senior unsecured notes:
Due April 1, 2024 (USD)																								500,000
Due July 19, 2024 (EUR)																								543,300
Due February 1, 2025 (USD)																								450,000
Due April 9, 2026 (EUR)																								543,300
Due October 1, 2026 (USD)																								350,000
Due April 15, 2027 (EUR)																								543,300
Due April 15, 2028 (EUR)																								543,300
Due July 15, 2029 (USD)																								325,000
Due September 28, 2029 (EUR)																								162,990
Due June 1, 2030 (EUR)																								570,465
Due February 1, 2031 (USD)																								500,000
Due February 1, 2032 (USD)																								350,000
Due September 28, 2032 (EUR)																								217,320
Due April 1, 2033 (USD)																								425,000
Total Pro Rata Debt																								8,762,686
Total Capitalization																								$	23,213,849

________

(a)Excludes unamortized discount, net totaling $34.7 million and unamortized deferred financing costs totaling $23.9 million as of June 30, 2023.

						Investing for the Long Run® | 15

---

W. P. Carey Inc.

Balance Sheets and Capitalization – Second Quarter 2023

Debt Overview

Dollars in thousands. Pro rata. As of June 30, 2023.

			USD-Denominated															EUR-Denominated															Other Currencies (a)															Total
																																																Outstanding Balance
			Out-standing Balance (in USD)						Weigh-ted Avg. Interest Rate									Out-standing Balance (in USD)						Weigh-ted Avg. Interest Rate									Out-standing Balance (in USD)						Weigh-ted Avg. Interest Rate									Amount (in USD)						% of Total						Weigh-ted Avg. Interest Rate						Weigh-ted Avg. Maturity (Years)
Non-Recourse Debt (b) (c)
Fixed (d)			$	661,226					4.8		%							$	221,317					2.7		%							$	45,589					4.2		%							$	928,132					10.6		%				4.3		%				1.5
Variable:
Floating			—						—		%							112,330						5.0		%							39,613						4.6		%							151,943						1.8		%				4.9		%				1.2
Capped			—						—		%							11,187						4.6		%							—						—		%							11,187						0.1		%				4.6		%				0.1
Total Pro Rata Non-Recourse Debt			661,226						4.8		%							344,834						3.5		%							85,202						4.4		%							1,091,262						12.5		%				4.3		%				1.5
Recourse Debt (b) (c)
Fixed – Senior unsecured notes:
Due April 1, 2024			500,000						4.6		%							—						—		%							—						—		%							500,000						5.7		%				4.6		%				0.8
Due July 19, 2024			—						—		%							543,300						2.3		%							—						—		%							543,300						6.2		%				2.3		%				1.1
Due February 1, 2025			450,000						4.0		%							—						—		%							—						—		%							450,000						5.1		%				4.0		%				1.6
Due April 9, 2026			—						—		%							543,300						2.3		%							—						—		%							543,300						6.2		%				2.3		%				2.8
Due October 1, 2026			350,000						4.3		%							—						—		%							—						—		%							350,000						4.0		%				4.3		%				3.3
Due April 15, 2027			—						—		%							543,300						2.1		%							—						—		%							543,300						6.2		%				2.1		%				3.8
Due April 15, 2028			—						—		%							543,300						1.4		%							—						—		%							543,300						6.2		%				1.4		%				4.8
Due July 15, 2029			325,000						3.9		%							—						—		%							—						—		%							325,000						3.7		%				3.9		%				6.0
Due September 28, 2029			—						—		%							162,990						3.4		%							—						—		%							162,990						1.9		%				3.4		%				6.3
Due June 1, 2030			—						—		%							570,465						1.0		%							—						—		%							570,465						6.5		%				1.0		%				6.9
Due February 1, 2031			500,000						2.4		%							—						—		%							—						—		%							500,000						5.7		%				2.4		%				7.6
Due February 1, 2032			350,000						2.5		%							—						—		%							—						—		%							350,000						4.0		%				2.5		%				8.6
Due September 28, 2032			—						—		%							217,320						3.7		%							—						—		%							217,320						2.5		%				3.7		%				9.3
Due April 1, 2033			425,000						2.3		%							—						—		%							—						—		%							425,000						4.8		%				2.3		%				9.8
Total Senior Unsecured Notes			2,900,000						3.4		%							3,123,975						2.0		%							—						—		%							6,023,975						68.7		%				2.7		%				4.8
Swapped to Fixed:
Unsecured term loans (due April 24, 2026) (e)			—						—		%							543,300						4.3		%							—						—		%							543,300						6.2		%				4.3		%				2.8
Variable:
Unsecured term loans (due February 20, 2025) (f)			—						—		%							233,619						4.4		%							341,825						5.8		%							575,444						6.6		%				5.3		%				1.6
Unsecured revolving credit facility (due February 20, 2025) (g)			110,000						5.9		%							402,042						4.2		%							16,663						0.9		%							528,705						6.0		%				4.5		%				1.6
Total Recourse Debt			3,010,000						3.5		%							4,302,936						2.6		%							358,488						5.6		%							7,671,424						87.5		%				3.1		%				4.2
Total Pro Rata Debt Outstanding			$	3,671,226					3.7		%							$	4,647,770					2.7		%							$	443,690					5.3		%							$	8,762,686					100.0		%				3.3		%				3.9

________

(a)Other currencies include debt denominated in British pound sterling, Norwegian krone and Japanese yen.

(b)Debt data is presented on a pro rata basis. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata.

(c)Excludes unamortized discount, net totaling $34.7 million and unamortized deferred financing costs totaling $23.9 million as of June 30, 2023.

(d)Includes $155.4 million of non-recourse mortgage debt which is swapped to fixed-rate through mortgage maturity.

(e)Interest rate swap expiration date is December 31, 2024.

(f)We incurred interest at SONIA or EURIBOR, plus 0.85% for both base rates, on our Unsecured term loans. SONIA includes a spread adjustment of 0.0326%.

(g)Depending on the currency, we incurred interest on our Unsecured revolving credit facility at EURIBOR, SOFR or TIBOR, plus 0.775% for all base rates. Each has a floor of 0.00% under the terms of our credit agreement. SOFR includes a spread adjustment of 0.10%. Availability under our Unsecured revolving credit facility (net of amounts reserved for standby letters of credit) was approximately $1.3 billion as of June 30, 2023.

						Investing for the Long Run® | 16

---

W. P. Carey Inc.

Balance Sheets and Capitalization – Second Quarter 2023

Debt Maturity

Dollars in thousands. Pro rata. As of June 30, 2023.

						Real Estate												Debt
						Number of Properties (a)												Weighted-Average Interest Rate												Total Outstanding Balance (b) (c)						% of Total Outstanding Balance
Year of Maturity												ABR (a)												Balloon
Non-Recourse Debt
Remaining 2023						14						$	36,648					4.4		%				$	265,329					$	265,706					3.0		%
2024						51						38,165						3.9		%				254,065						258,581						3.0		%
2025						48						46,219						4.4		%				404,494						422,744						4.8		%
2026						20						17,937						4.9		%				97,760						113,664						1.3		%
2027						1						—						4.3		%				21,450						21,450						0.3		%
2031						1						1,054						6.0		%				—						2,792						—		%
2033						1						1,375						5.6		%				1,671						3,777						0.1		%
2039						1						731						5.3		%				—						2,548						—		%
Total Pro Rata Non-Recourse Debt						137						$	142,129					4.3		%				$	1,044,769					1,091,262						12.5		%
Recourse Debt
Fixed – Senior unsecured notes:
Due April 1, 2024 (USD)																		4.6		%										500,000						5.7		%
Due July 19, 2024 (EUR)																		2.3		%										543,300						6.2		%
Due February 1, 2025 (USD)																		4.0		%										450,000						5.1		%
Due April 9, 2026 (EUR)																		2.3		%										543,300						6.2		%
Due October 1, 2026 (USD)																		4.3		%										350,000						4.0		%
Due April 15, 2027 (EUR)																		2.1		%										543,300						6.2		%
Due April 15, 2028 (EUR)																		1.4		%										543,300						6.2		%
Due July 15, 2029 (USD)																		3.9		%										325,000						3.7		%
Due September 28, 2029 (EUR)																		3.4		%										162,990						1.9		%
Due June 1, 2030 (EUR)																		1.0		%										570,465						6.5		%
Due February 1, 2031 (USD)																		2.4		%										500,000						5.7		%
Due February 1, 2032 (USD)																		2.5		%										350,000						4.0		%
Due September 28, 2032 (EUR)																		3.7		%										217,320						2.5		%
Due April 1, 2033 (USD)																		2.3		%										425,000						4.8		%
Total Senior Unsecured Notes																		2.7		%										6,023,975						68.7		%
Swapped to Fixed:
Unsecured term loans (due April 24, 2026) (d)																		4.3		%										543,300						6.2		%
Variable:
Unsecured term loans (due February 20, 2025) (e)																		5.3		%										575,444						6.6		%
Unsecured revolving credit facility (due February 20, 2025) (f)																		4.5		%										528,705						6.0		%
Total Recourse Debt																		3.1		%										7,671,424						87.5		%
Total Pro Rata Debt Outstanding																		3.3		%										$	8,762,686					100.0		%

________

(a)Represents the number of properties and ABR associated with the debt that is maturing in each respective year.

(b)Debt maturity data is presented on a pro rata basis. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata. Total outstanding balance includes balloon payments and scheduled amortization for our non-recourse debt.

(c)Excludes unamortized discount, net totaling $34.7 million and unamortized deferred financing costs totaling $23.9 million as of June 30, 2023.

(d)Interest rate swap expiration date is December 31, 2024.

(e)We incurred interest at SONIA or EURIBOR, plus 0.85% for both base rates, on our Unsecured term loans. SONIA includes a spread adjustment of 0.0326%.

(f)Depending on the currency, we incurred interest on our Unsecured revolving credit facility at EURIBOR, SOFR, or TIBOR, plus 0.775% for all base rates. Each has a floor of 0.00% under the terms of our credit agreement. SOFR includes a spread adjustment of 0.10%. Availability under our Unsecured revolving credit facility (net of amounts reserved for standby letters of credit) was approximately $1.3 billion as of June 30, 2023.

						Investing for the Long Run® | 17

---

W. P. Carey Inc.

Balance Sheets and Capitalization – Second Quarter 2023

Senior Unsecured Notes

As of June 30, 2023.

Ratings

Issuer

Senior Unsecured Notes

Ratings Agency

Rating

Outlook

Rating

Moody's

Baa1

Stable

Baa1

Standard & Poor’s

BBB+

Stable

BBB+

Senior Unsecured Note Covenants

The following is a summary of the key financial covenants for the Senior Unsecured Notes, along with our estimated calculations of our compliance with those covenants at the end of the period presented. These ratios are not measures of our liquidity or performance and serve only to demonstrate our ability to incur additional debt, as permitted by the covenants for the Senior Unsecured Notes.

Covenant

Metric

Required

As of Jun. 30, 2023

Limitation on the incurrence of debt

"Total Debt" / "Total Assets"

≤ 60%

40.9%

Limitation on the incurrence of secured debt

"Secured Debt" / "Total Assets"

≤ 40%

4.7%

Limitation on the incurrence of debt based on consolidated EBITDA to annual debt service charge

"Consolidated EBITDA" / "Annual Debt Service Charge"

≥ 1.5x

5.2x

Maintenance of unencumbered asset value

"Unencumbered Assets" / "Total Unsecured Debt"

≥ 150%

234.2%

						Investing for the Long Run® | 18

---

W. P. Carey Inc.

Real Estate

Second Quarter 2023

						Investing for the Long Run® | 19

---

W. P. Carey Inc.

Real Estate – Second Quarter 2023

Investment Activity – Capital Investments and Commitments (a)

Dollars in thousands. Pro rata.

												Primary Transaction Type						Property Type						Expected Completion / Closing Date						Gross Square Footage						Lease Term (Years) (b)						Funded During Three Months Ended Jun. 30, 2023						Total Funded Through Jun. 30, 2023						Maximum Commitment / Gross Investment Amount
Tenant						Location																																																Remaining						Total
Chattem, Inc.						Chattanooga, TN						Expansion						Warehouse						Q3 2023						120,000						10						$	5,837					$	5,837					$	20,715					$	26,552
Unchained Labs, LLC						Pleasanton, CA						Redevelopment						Laboratory						Q3 2023						N/A						16						6,459						12,694						1,203						13,897
TWAS Holdings, LLC (2 properties) (c)						Various, United States						Purchase Commitment						Retail (Car Wash)						Q3 2023						8,614						20						—						—						8,650						8,650
Hellweg Die Profi-Baumärkte GmbH & Co. KG (2 properties) (d)						Various, Germany						Renovation						Retail						Q4 2023						N/A						14						—						—						2,282						2,282
Expected Completion Date 2023 Total																														128,614						15						12,296						18,531						32,850						51,381
Terran Orbital Corporation						Irvine, CA						Redevelopment						Industrial						Q1 2024						94,195						10						970						1,744						13,356						15,100
Hexagon Composites ASA						Salisbury, NC						Expansion						Industrial						Q1 2024						113,000						15						3,137						3,137						10,663						13,800
Storage Space						Little Rock, AR						Expansion						Self-Storage (Operating)						Q2 2024						59,850						N/A						—						—						3,570						3,570
Fraikin SAS (d)						Various, France						Renovation						Industrial						Q4 2024						N/A						17						—						—						7,498						7,498
Outfront Media, LLC (6 properties)						Various, NJ						Build-to-Suit						Outdoor Advertising						Various						N/A						30						—						7,272						474						7,746
Expected Completion Date 2024 Total																														267,045						15						4,107						12,153						35,561						47,714
ZF Friedrichshafen AG (e)						Washington, MI						Redevelopment						Research and Development						Q1 2025						81,200						20						713						893						45,689						46,611
Expected Completion Date 2025 Total																														81,200						20						713						893						45,689						46,611
Capital Investments and Commitments Total																														476,859						16						$	17,116					$	31,577					$	114,100					$	145,706

________

(a)This schedule includes future estimates for which we can give no assurance as to timing or amounts. Completed capital investments and commitments are included in the Investment Activity – Investment Volume section. Funding amounts exclude capitalized construction interest.

(b)Total lease terms are based on weighted-average ABR for the investments expected upon completion.

(c)Projects will be funded upon completion and are contingent on buildings being constructed according to our standards.

(d)Commitment amounts are based on the applicable exchange rate at period end.

(e)We earn interest from this tenant, which is accrued through the construction period and deducted from the remaining commitment.

						Investing for the Long Run® | 20

---

W. P. Carey Inc.

Real Estate – Second Quarter 2023

Investment Activity – Investment Volume

Dollars in thousands. Pro rata. For the six months ended June 30, 2023.

Property Type(s)

Closing Date / Asset Completion Date

Gross Investment Amount

Investment Type

Lease Term (Years) (a)

Gross Square Footage

Tenant / Lease Guarantor

Property Location(s)

1Q23

Plaskolite, LLC (6 properties)

Various, United States

Industrial

Jan-23

$

64,861

Sale-leaseback

24

931,521

Siderforgerossi Group S.P.A. (8 properties) (b)

Various, Italy (5 properties) and Spain (3 properties)

Industrial

Mar-23

79,218

Sale-leaseback

25

1,256,209

Berry Global Inc. (2 properties)

Evansville, IN and Lawrence, KS

Industrial

Mar-23

20,000

Renovation

17

N/A

1Q23 Total

164,079

24

2,187,730

2Q23

Apotex Pharmaceutical Holdings (11 properties)

Various, Canada

Industrial, Warehouse

Apr-23

467,811

Sale-leaseback

20

2,268,417

ABC Technologies Holdings Inc. (9 properties) (c)

Various, United States (4 properties), Canada (3 properties), and Mexico (2 properties)

Industrial

Apr-23

97,952

Sale-leaseback

20

1,225,951

TWAS Holdings, LLC (9 properties)

Various, United States

Retail (Car Wash)

May-23

39,713

Sale-leaseback

20

33,433

Bear Holdings, LP (4 properties)

Various, United States

Education (Medical School)

Jun-23

139,092

Sale-leaseback

25

410,332

Storage Space (d)

Little Rock, AR

Self-Storage (Operating)

Jun-23

6,166

Operating

N/A

55,850

2Q23 Total

750,734

21

3,993,983

Year-to-Date Total

914,813

22

6,181,713

												Property Type(s)						Funded During Current Quarter						Funded Year to Date						Expected Funding Completion Date						Total Funded						Maximum Commitment
Description						Property Location(s)
Construction Loan
Southwest Corner of Las Vegas Boulevard & Harmon Avenue Retail Complex (e)						Las Vegas, NV						Retail						$	9,961					$	23,677					Q4 2023						$	216,845					$	261,887
Total																								23,677
Year-to-Date Total Investment Volume																								$	938,490

________

(a)Total lease terms are based on weighted-average ABR for the investments as of the respective period ends.

(b)Amount reflects the applicable exchange rate on the date of the transaction.

(c)Amount includes $3.1 million for an expansion at a property leased to this tenant that we already own.

(d)We also committed to fund an additional $3.6 million for an expansion at this facility, which is expected to be completed in the second quarter of 2024.

(e)This construction loan is accounted for as an equity method investment on our consolidated balance sheets, in accordance with U.S. GAAP. The interest rate is 6.0% and interest income is recognized within Earnings from equity method investments on our consolidated statements of income.

						Investing for the Long Run® | 21

---

W. P. Carey Inc.

Real Estate – Second Quarter 2023

Investment Activity – Dispositions

Dollars in thousands. Pro rata. For the six months ended June 30, 2023.

Tenant / Lease Guarantor

Property Location(s)

Gross Sale Price

Closing Date

Property Type(s)

Gross Square Footage

1Q23

Adler Modemarkte AG (a)

Haibach, Germany

$

11,151

Jan-23

Office

180,909

Vacant

Columbus, GA

8,000

Feb-23

Industrial

273,667

Vacant

Bloomington, MN

3,150

Mar-23

Office

221,800

Vacant

Chicago, IL

17,500

Mar-23

Office

178,490

Vacant

Virginia, MN

2,900

Mar-23

Office

62,973

1Q23 Total

42,701

917,839

2Q23

Vacant (a)

Doncaster, United Kingdom

945

May-23

Land

N/A

Vacant (formerly Pendragon PLC) (a)

West Bromwich, United Kingdom

3,285

May-23

Retail

23,236

Vacant (formerly Pendragon PLC) (a)

Cardiff, United Kingdom

1,266

Jun-23

Retail

14,894

2Q23 Total

5,496

38,130

Year-to-Date Total Dispositions

$

48,197

955,969

________

(a)Amount reflects the applicable exchange rate on the date of the transaction.

						Investing for the Long Run® | 22

---

W. P. Carey Inc.

Real Estate – Second Quarter 2023

Joint Ventures

Dollars in thousands. As of June 30, 2023.

Joint Venture or JV (Principal Tenant)						JV Partnership												Consolidated												Pro Rata (a)
						Asset Type						WPC %						Debt Outstanding (b)						ABR						Debt Outstanding (c)						ABR
Unconsolidated Joint Venture (Equity Method Investment) (d)
Harmon Retail Corner						Common equity interest						15.00%						$	143,000					$	—					$	21,450					$	—
Kesko Senukai (e)						Net lease						70.00%						106,606						15,833						74,624						11,083
Johnson Self Storage						Self-storage operating						90.00%						—						N/A						—						N/A
Total Unconsolidated Joint Ventures																		249,606						15,833						96,074						11,083
Consolidated Joint Ventures
COOP Ost SA (e)						Net lease						90.10%						50,598						6,626						45,589						5,970
Fentonir Trading & Investments Limited (e)						Net lease						94.90%						46,181						8,346						43,825						7,921
State of Iowa Board of Regents						Net lease						90.00%						6,205						4,258						5,585						3,833
McCoy-Rockford, Inc.						Net lease						90.00%						—						932						—						839
Austin, TX Student Housing						Student housing operating						90.00%						—						N/A						—						N/A
Total Consolidated Joint Ventures																		102,984						20,162						94,999						18,563
Total Unconsolidated and Consolidated Joint Ventures																		$	352,590					$	35,995					$	191,073					$	29,646

________

(a)See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata.

(b)Excludes unamortized discount, net totaling $0.9 million and unamortized deferred financing costs totaling $0.4 million as of June 30, 2023.

(c)Excludes unamortized discount, net totaling $0.8 million and unamortized deferred financing costs totaling less than $0.1 million as of June 30, 2023.

(d)Excludes a construction loan for a retail complex in Las Vegas, Nevada, accounted for as an equity method investment in real estate, as described in the Components of Net Asset Value section.

(e)Amounts are based on the applicable exchange rate at the end of the period.

						Investing for the Long Run® | 23

---

W. P. Carey Inc.

Real Estate – Second Quarter 2023

Top Ten Tenants

Dollars in thousands. Pro rata. As of June 30, 2023.

Tenant / Lease Guarantor						Description						Number of Properties						ABR						ABR %						Weighted-Average Lease Term (Years)
U-Haul Moving Partners Inc. and Mercury Partners, LP (a)						Net lease self-storage properties in the U.S.						78						$	38,751					2.6		%				0.8
State of Andalucía (b)						Government office properties in Spain						70						31,997						2.2		%				11.5
Apotex Pharmaceutical Holdings Inc. (c)						Pharmaceutical R&D and advanced manufacturing properties in Canada						11						31,528						2.1		%				19.8
Metro Cash & Carry Italia S.p.A. (b)						Business-to-business wholesale stores in Italy and Germany						20						29,686						2.0		%				5.2
Hellweg Die Profi-Baumärkte GmbH & Co. KG (b)						Do-it-yourself retail properties in Germany						35						29,680						2.0		%				13.7
Extra Space Storage, Inc.						Net lease self-storage properties in the U.S.						27						25,036						1.7		%				20.8
OBI Group (b)						Do-it-yourself retail properties in Poland						26						24,348						1.7		%				8.0
ABC Technologies Holdings Inc. (d)						Automotive component manufacturing properties in North America						23						24,251						1.7		%				19.8
Nord Anglia Education, Inc.						K-12 private schools in the U.S.						3						22,245						1.5		%				20.2
Fortenova Grupa d.d. (b)						Grocery stores and warehouses in Croatia						19						21,994						1.5		%				10.8
Total (e)												312						$	279,516					19.0		%				12.4

________

(a)As of June 30, 2023, Mercury Partners, LP (a related party of U-Haul Moving Partners Inc.) provided notice that it intends to exercise its option to repurchase the 78 properties it is leasing.

(b)ABR amounts are subject to fluctuations in foreign currency exchange rates.

(c)ABR from these properties is denominated in U.S. dollars.

(d)Of the 23 properties leased to ABC Technologies Holdings Inc., nine are located in Canada, eight are located in the United States, and six are located in Mexico. ABR from the properties in Canada and Mexico is denominated in U.S. dollars.

(e)See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata.

						Investing for the Long Run® | 24

---

W. P. Carey Inc.

Real Estate – Second Quarter 2023

Diversification by Property Type

In thousands, except percentages. Pro rata. As of June 30, 2023.

						Total Net-Lease Portfolio
Property Type						ABR						ABR %						Square Footage (a)						Square Footage %
U.S.
Industrial						$	312,960					21.3		%				53,207						29.6		%
Warehouse						210,091						14.3		%				42,274						23.5		%
Retail (b)						48,593						3.3		%				2,801						1.6		%
Office						151,172						10.3		%				9,610						5.3		%
Self Storage (net lease)						63,786						4.3		%				5,810						3.2		%
Other (c)						109,737						7.5		%				5,081						2.8		%
U.S. Total						896,339						61.0		%				118,783						66.0		%
International
Industrial						114,835						7.8		%				14,798						8.2		%
Warehouse						135,226						9.2		%				20,737						11.5		%
Retail (b)						199,265						13.6		%				17,466						9.7		%
Office						86,152						5.8		%				6,461						3.6		%
Self Storage (net lease)						—						—		%				—						—		%
Other (c)						37,933						2.6		%				1,774						1.0		%
International Total						573,411						39.0		%				61,236						34.0		%
Total
Industrial						427,795						29.1		%				68,005						37.8		%
Warehouse						345,317						23.5		%				63,011						35.0		%
Retail (b)						247,858						16.9		%				20,267						11.3		%
Office						237,324						16.1		%				16,071						8.9		%
Self Storage (net lease)						63,786						4.3		%				5,810						3.2		%
Other (c)						147,670						10.1		%				6,855						3.8		%
Total (d)						$	1,469,750					100.0		%				180,019						100.0		%

________

(a)Includes square footage for vacant properties.

(b)Includes automotive dealerships.

(c)Includes ABR from tenants with the following property types: education facility, hotel (net lease), laboratory, specialty, research and development, fitness facility, student housing (net lease), theater, funeral home, restaurant, land, outdoor advertising and parking.

(d)See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata.

						Investing for the Long Run® | 25

---

W. P. Carey Inc.

Real Estate – Second Quarter 2023

Diversification by Tenant Industry

In thousands, except percentages. Pro rata. As of June 30, 2023.

						Total Net-Lease Portfolio
Industry Type						ABR						ABR %						Square Footage						Square Footage %
Retail Stores (a)						$	296,390					20.2		%				36,258						20.1		%
Consumer Services						127,046						8.6		%				8,511						4.7		%
Beverage and Food						108,860						7.4		%				15,759						8.8		%
Automotive						95,549						6.5		%				14,648						8.1		%
Healthcare and Pharmaceuticals						88,412						6.0		%				7,825						4.4		%
Grocery						88,380						6.0		%				8,404						4.7		%
Cargo Transportation						65,929						4.5		%				9,550						5.3		%
Capital Equipment						56,603						3.9		%				8,459						4.7		%
Containers, Packaging, and Glass						49,899						3.4		%				8,266						4.6		%
Construction and Building						48,689						3.3		%				9,233						5.1		%
Business Services						48,672						3.3		%				4,113						2.3		%
Durable Consumer Goods						47,153						3.2		%				10,299						5.7		%
Sovereign and Public Finance						45,595						3.1		%				3,560						2.0		%
Hotel and Leisure						41,562						2.8		%				2,024						1.1		%
High Tech Industries						35,590						2.4		%				3,486						1.9		%
Chemicals, Plastics, and Rubber						35,249						2.4		%				6,186						3.4		%
Insurance						30,730						2.1		%				1,961						1.1		%
Telecommunications						26,710						1.8		%				2,137						1.2		%
Metals						26,096						1.8		%				4,515						2.5		%
Non-Durable Consumer Goods						25,614						1.7		%				5,971						3.3		%
Banking						15,543						1.1		%				1,006						0.6		%
Other (b)						65,479						4.5		%				7,848						4.4		%
Total (c)						$	1,469,750					100.0		%				180,019						100.0		%

________

(a)Includes automotive dealerships.

(b)Includes ABR from tenants in the following industries: aerospace and defense, wholesale, media: advertising, printing, and publishing, oil and gas, media: broadcasting and subscription, utilities: electric, environmental industries, consumer transportation, forest products and paper, electricity, finance and real estate. Also includes square footage for vacant properties.

(c)See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata.

						Investing for the Long Run® | 26

---

W. P. Carey Inc.

Real Estate – Second Quarter 2023

Diversification by Geography

In thousands, except percentages. Pro rata. As of June 30, 2023.

						Total Net-Lease Portfolio
Region						ABR						ABR %						Square Footage (a)						Square Footage %
U.S.
Midwest
Illinois						$	73,739					5.0		%				10,582						5.9		%
Minnesota						34,901						2.4		%				3,406						1.9		%
Ohio						33,341						2.3		%				7,008						3.9		%
Indiana						29,756						2.0		%				5,137						2.8		%
Michigan						29,166						2.0		%				4,816						2.7		%
Wisconsin						18,853						1.3		%				3,276						1.8		%
Other (b)						44,413						3.0		%				6,237						3.5		%
Total Midwest						264,169						18.0		%				40,462						22.5		%
South
Texas						116,359						7.9		%				12,609						7.0		%
Florida						53,160						3.6		%				4,380						2.4		%
Georgia						28,404						1.9		%				4,454						2.5		%
Tennessee						26,871						1.8		%				4,296						2.4		%
Alabama						21,195						1.5		%				3,346						1.9		%
Other (b)						15,827						1.1		%				2,402						1.3		%
Total South						261,816						17.8		%				31,487						17.5		%
East
North Carolina						39,544						2.7		%				8,404						4.7		%
Pennsylvania						33,270						2.2		%				3,574						2.0		%
New York						20,194						1.4		%				2,256						1.2		%
South Carolina						18,675						1.3		%				4,949						2.7		%
Massachusetts						18,357						1.2		%				1,387						0.8		%
Kentucky						17,380						1.2		%				2,980						1.7		%
Virginia						15,986						1.1		%				1,854						1.0		%
Other (b)						38,358						2.6		%				4,662						2.6		%
Total East						201,764						13.7		%				30,066						16.7		%
West
California						63,404						4.3		%				6,100						3.4		%
Arizona						30,692						2.1		%				3,437						1.9		%
Utah						15,144						1.0		%				2,085						1.1		%
Other (b)						59,350						4.1		%				5,146						2.9		%
Total West						168,590						11.5		%				16,768						9.3		%
U.S. Total						896,339						61.0		%				118,783						66.0		%
International
Germany						74,207						5.1		%				6,839						3.8		%
Spain						72,367						4.9		%				5,631						3.1		%
The Netherlands						60,440						4.1		%				7,054						3.9		%
Poland						59,408						4.0		%				8,635						4.8		%
United Kingdom						54,633						3.7		%				4,742						2.6		%
Canada (c)						50,761						3.5		%				5,087						2.8		%
Italy						32,694						2.2		%				3,354						1.9		%
Denmark						25,022						1.7		%				3,039						1.7		%
Croatia						22,810						1.6		%				2,063						1.2		%
France						21,143						1.4		%				1,679						0.9		%
Norway						15,118						1.0		%				753						0.4		%
Other (d)						84,808						5.8		%				12,360						6.9		%
International Total						573,411						39.0		%				61,236						34.0		%
Total (e)						$	1,469,750					100.0		%				180,019						100.0		%

________

(a)Includes square footage for vacant properties.

(b)Other properties within Midwest include assets in Iowa, Missouri, Kansas, Nebraska, South Dakota and North Dakota. Other properties within South include assets in Louisiana, Arkansas, Oklahoma and Mississippi. Other properties within East include assets in New Jersey, Maryland, Connecticut, West Virginia, New Hampshire and Maine. Other properties within West include assets in Colorado, Oregon, Nevada, Washington, Hawaii, Idaho, Montana, New Mexico and Wyoming.

(c)$46.8 million (92%) of ABR from properties in Canada is denominated in U.S. dollars, with the balance denominated in Canadian dollars.

(d)Includes assets in Lithuania, Mexico, Finland, Belgium, Hungary, Mauritius, Slovakia, Portugal, the Czech Republic, Austria, Sweden, Latvia, Japan and Estonia.

(e)See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata.

						Investing for the Long Run® | 27

---

W. P. Carey Inc.

Real Estate – Second Quarter 2023

Contractual Rent Increases

In thousands, except percentages. Pro rata. As of June 30, 2023.

						Total Net-Lease Portfolio
Rent Adjustment Measure						ABR						ABR %						Square Footage						Square Footage %
Uncapped CPI						$	541,068					36.8		%				55,222						30.7		%
Capped CPI						245,307						16.7		%				34,031						18.9		%
CPI-linked						786,375						53.5		%				89,253						49.6		%
Fixed						634,531						43.2		%				85,964						47.7		%
Other (a)						35,199						2.4		%				2,337						1.3		%
None						13,645						0.9		%				636						0.4		%
Vacant						—						—		%				1,829						1.0		%
Total (b)						$	1,469,750					100.0		%				180,019						100.0		%

________

(a)Represents leases attributable to percentage rent.

(b)See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata.

						Investing for the Long Run® | 28

---

W. P. Carey Inc.

Real Estate – Second Quarter 2023

Same-Store Analysis

Dollars in thousands. Pro rata.

Contractual Same-Store Growth

Same-store portfolio includes leases that were continuously in place during the period from June 30, 2022 to June 30, 2023. Excludes leases for properties that were acquired, sold or vacated, or were subject to lease renewals, extensions or modifications at any time that affected ABR during that period. Excludes leases for properties acquired in the CPA:18 Merger on August 1, 2022. For purposes of comparability, ABR is presented on a constant currency basis using exchange rates as of June 30, 2023.

			ABR
			As of
			Jun. 30, 2023						Jun. 30, 2022						Increase						% Increase
Property Type
Industrial			$	314,008					$	302,040					$	11,968					4.0		%
Warehouse			318,164						306,224						11,940						3.9		%
Retail (a)			230,778						216,685						14,093						6.5		%
Office			198,404						191,954						6,450						3.4		%
Self Storage (net lease)			63,786						61,708						2,078						3.4		%
Other (b)			104,493						100,659						3,834						3.8		%
Total			$	1,229,633					$	1,179,270					$	50,363					4.3		%
Rent Adjustment Measure
Uncapped CPI			$	475,525					$	442,544					$	32,981					7.5		%
Capped CPI			233,320						226,762						6,558						2.9		%
CPI-linked			708,845						669,306						39,539						5.9		%
Fixed			471,955						463,210						8,745						1.9		%
Other (c)			35,199						33,120						2,079						6.3		%
None			13,634						13,634						—						—		%
Total			$	1,229,633					$	1,179,270					$	50,363					4.3		%
Geography
U.S.			$	755,121					$	734,415					$	20,706					2.8		%
Europe			446,429						417,693						28,736						6.9		%
Other International (d)			28,083						27,162						921						3.4		%
Total			$	1,229,633					$	1,179,270					$	50,363					4.3		%
Same-Store Portfolio Summary
Number of properties			1,230
Square footage (in thousands)			147,565

						Investing for the Long Run® | 29

---

W. P. Carey Inc.

Real Estate – Second Quarter 2023

Comprehensive Same-Store Growth

Same-store portfolio includes leased properties that were continuously owned and in place during the quarter ended June 30, 2022 through June 30, 2023 (including properties that were subject to lease renewals, extensions or modifications at any time during that period). Excludes properties that were acquired, sold or listed as capital investments and commitments (see Investment Activity – Capital Investments and Commitments section) during that period. Excludes properties acquired in the CPA:18 Merger on August 1, 2022. For purposes of comparability, same-store pro rata rental income is presented on a constant currency basis using average exchange rates for the three months ended June 30, 2023. Same-store pro rata rental income is a non-GAAP measure. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of same-store pro rata rental income and for details on how it is calculated.

			Same-Store Pro Rata Rental Income
			Three Months Ended
			Jun. 30, 2023						Jun. 30, 2022						Increase						% Increase
Property Type
Industrial			$	78,941					$	75,387					$	3,554					4.7		%
Warehouse			58,006						54,626						3,380						6.2		%
Retail (a)			52,730						51,456						1,274						2.5		%
Office			74,656						72,533						2,123						2.9		%
Self Storage (net lease)			15,899						15,401						498						3.2		%
Other (b)			28,737						27,863						874						3.1		%
Total			$	308,969					$	297,266					$	11,703					3.9		%
Rent Adjustment Measure
Uncapped CPI			$	124,032					$	116,336					$	7,696					6.6		%
Capped CPI			56,364						56,061						303						0.5		%
CPI-linked			180,396						172,397						7,999						4.6		%
Fixed			116,739						113,587						3,152						2.8		%
Other (c)			8,634						8,157						477						5.8		%
None			3,200						3,125						75						2.4		%
Total			$	308,969					$	297,266					$	11,703					3.9		%
Geography
U.S.			$	189,965					$	184,255					$	5,710					3.1		%
Europe			112,844						107,056						5,788						5.4		%
Other International (d)			6,160						5,955						205						3.4		%
Total			$	308,969					$	297,266					$	11,703					3.9		%
Same-Store Portfolio Summary
Number of properties			1,281
Square footage (in thousands)			148,044

						Investing for the Long Run® | 30

---

W. P. Carey Inc.

Real Estate – Second Quarter 2023

The following table presents a reconciliation from lease revenues to same-store pro rata rental income:

			Three Months Ended
			Jun. 30, 2023						Jun. 30, 2022
Consolidated Lease Revenues
Total lease revenues – as reported			$	369,124					$	314,354
Income from finance leases and loans receivable			27,311						17,778
Less: Reimbursable tenant costs – as reported			(20,523)						(16,704)
Less: Income from secured loans receivable			(1,188)						(1,175)
			374,724						314,253
Adjustments for Pro Rata Ownership of Real Estate Joint Ventures:
Add: Pro rata share of adjustments from equity method investments			4,146						5,374
Less: Pro rata share of adjustments for noncontrolling interests			(322)						(22)
			3,824						5,352
Adjustments for Pro Rata Non-Cash Items:
Less: Straight-line and other leasing and financing adjustments			(19,086)						(14,492)
Add: Above- and below-market rent intangible lease amortization			8,824						10,548
Less: Adjustments for pro rata ownership			(1,763)						27
			(12,025)						(3,917)
Adjustment to normalize for (i) properties not continuously owned since April 1, 2022 and (ii) constant currency presentation for prior year quarter (e)			(57,554)						(18,422)
Same-Store Pro Rata Rental Income			$	308,969					$	297,266

________

(a)Includes automotive dealerships.

(b)Includes ABR or same-store pro rata rental income from tenants with the following property types: education facility, hotel (net lease), laboratory, specialty, fitness facility, research and development, student housing (net lease), theater, funeral home, restaurant, land, parking and outdoor advertising.

(c)Represents leases attributable to percentage rent.

(d)Includes assets in Canada, Mexico and Japan.

(e)This adjustment excludes amounts attributable to properties that were acquired, sold or listed as capital investments and commitments (see Investment Activity – Capital Investments and Commitments section) that were not continuously owned and in place during the quarter ended June 30, 2022 through June 30, 2023. In addition, for the three months ended June 30, 2022, an adjustment is made to reflect average exchange rates for the three months ended June 30, 2023 for purposes of comparability, since same-store pro rata rental income is presented on a constant currency basis.

						Investing for the Long Run® | 31

---

W. P. Carey Inc.

Real Estate – Second Quarter 2023

Leasing Activity

For the three months ended June 30, 2023, except ABR. Pro rata.

Lease Renewals and Extensions (a)																																				Expected Tenant Improvements ($000s)						Leasing Commissions ($000s)
																		ABR
Property Type						Square Feet						Number of Leases						Prior Lease ($000s)						New Lease ($000s) (b)						Rent Recapture																		Incremental Lease Term
Industrial						2,705,570						6						$	19,466					$	19,416					99.7		%				$	1,250					$	1,500					6.4 years
Warehouse						74,486						2						493						493						100.0		%				100						22						4.5 years
Retail						—						—						—						—						—		%				—						—						N/A
Office						16,752						1						97						97						100.0		%				—						—						6.4 years
Self Storage (net lease)						—						—						—						—						—		%				—						—						N/A
Other						259,584						3						2,524						2,495						98.9		%				—						—						1.4 years
Total / Weighted Average (c)						3,056,392						12						$	22,580					$	22,501					99.6		%				$	1,350					$	1,522					5.8 years
Q2 Summary
Prior Lease ABR (% of Total Portfolio)																		1.5		%

New Leases																								Expected Tenant Improvements ($000s)						Leasing Commissions ($000s)
																		ABR
Property Type						Square Feet						Number of Leases						New Lease ($000s) (b)																		New Lease Term
Industrial						—						—						$	—					$	—					$	—					N/A
Warehouse						—						—						—						—						—						N/A
Retail						21,477						1						209						617						165						15.0 years
Office						—						—						—						—						—						N/A
Self Storage (net lease)						—						—						—						—						—						N/A
Other						—						—						—						—						—						N/A
Total / Weighted Average (d)						21,477						1						$	209					$	617					$	165					15.0 years

_______

(a)Excludes lease extensions for a period of one year or less.

(b)New lease amounts are based on in-place rents at time of lease commencement and exclude any free rent periods.

(c)Weighted average refers to the incremental lease term.

(d)Weighted average refers to the new lease term.

						Investing for the Long Run® | 32

---

W. P. Carey Inc.

Real Estate – Second Quarter 2023

Lease Expirations

Dollars and square footage in thousands. Pro rata. As of June 30, 2023.

Year of Lease Expiration (a)						Number of Leases Expiring						Number of Tenants with Leases Expiring						ABR						ABR %						Square Footage						Square Footage %
Remaining 2023						23						19						$	20,650					1.4		%				3,232						1.8		%
2024 (b)						40						34						89,035						6.1		%				10,933						6.1		%
2025						53						32						64,002						4.4		%				7,076						3.9		%
2026						46						37						67,475						4.6		%				9,088						5.0		%
2027						57						34						83,863						5.7		%				8,868						4.9		%
2028						47						29						70,175						4.8		%				5,224						2.9		%
2029						58						30						73,378						5.0		%				8,575						4.8		%
2030						34						30						75,751						5.2		%				6,165						3.4		%
2031						37						21						72,284						4.9		%				8,749						4.9		%
2032						41						22						45,915						3.1		%				6,200						3.4		%
2033						30						23						82,225						5.6		%				11,196						6.2		%
2034						50						19						93,321						6.3		%				9,023						5.0		%
2035						14						14						29,734						2.0		%				4,957						2.8		%
2036						47						19						72,504						4.9		%				11,260						6.3		%
Thereafter (>2036)						278						117						529,438						36.0		%				67,644						37.6		%
Vacant						—						—						—						—		%				1,829						1.0		%
Total (c)						855												$	1,469,750					100.0		%				180,019						100.0		%

________

(a)Assumes tenants do not exercise any renewal options or purchase options.

(b)Includes ABR of $38.8 million from Mercury Partners, LP (a related party of U-Haul Moving Partners, Inc.) that as of June 30, 2023 provided notice of its intention to exercise its option to repurchase the 78 properties it is leasing.

(c)See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata.

						Investing for the Long Run® | 33

---

W. P. Carey Inc.

Real Estate – Second Quarter 2023

Self Storage Operating Properties Portfolio

Square footage in thousands. Pro rata. As of June 30, 2023.

State / District						Number of Properties						Number of Units						Square Footage						Square Footage %						Period End Occupancy
Florida						22						15,961						1,851						29.5		%				92.0		%
Texas						12						6,886						843						13.4		%				91.8		%
California						10						6,581						859						13.7		%				93.2		%
Illinois						10						4,797						665						10.6		%				90.0		%
South Carolina						6						3,713						412						6.6		%				95.4		%
Georgia						5						2,052						250						4.0		%				89.2		%
North Carolina						4						2,829						322						5.1		%				94.4		%
Nevada						3						2,423						243						3.9		%				90.6		%
Delaware						3						1,678						241						3.8		%				94.1		%
Hawaii						2						954						95						1.5		%				90.9		%
Washington, DC						1						880						67						1.1		%				96.4		%
New York						1						792						61						1.0		%				88.3		%
Kentucky						1						764						121						1.9		%				94.7		%
Arkansas						1						588						56						0.9		%				94.9		%
Louisiana						1						541						59						0.9		%				74.7		%
Massachusetts						1						482						58						0.9		%				91.2		%
Oregon						1						442						40						0.6		%				97.4		%
Missouri						1						330						41						0.6		%				66.6		%
Total (a)						85						52,693						6,284						100.0		%				91.9		%

________

(a)See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata.

						Investing for the Long Run® | 34

---

W. P. Carey Inc.

Appendix

Second Quarter 2023

						Investing for the Long Run® | 35

---

W. P. Carey Inc.

Appendix – Second Quarter 2023

Normalized Pro Rata Cash NOI

In thousands. From real estate.

			Three Months Ended Jun. 30, 2023
Consolidated Lease Revenues
Total lease revenues – as reported			$	369,124
Income from finance leases and loans receivable			27,311
Less: Income from secured loans receivable			(1,188)
Less: Consolidated Reimbursable and Non-Reimbursable Property Expenses
Reimbursable property expenses – as reported			20,523
Non-reimbursable property expenses – as reported			5,371
			369,353
Plus: NOI from Operating Properties
Self-storage revenues			23,292
Self-storage expenses			(7,939)
			15,353
Hotel revenues			24,694
Hotel expenses			(17,352)
			7,342
Student housing and other revenues			2,690
Student housing and other expenses			(1,628)
			1,062
			393,110
Adjustments for Pro Rata Ownership of Real Estate Joint Ventures:
Add: Pro rata share of NOI from equity method investments (a)			3,864
Less: Pro rata share of NOI attributable to noncontrolling interests (b)			(426)
			3,438
			396,548
Adjustments for Pro Rata Non-Cash Items:
Less: Straight-line and other leasing and financing adjustments			(19,086)
Add: Above- and below-market rent intangible lease amortization			8,824
Add: Other non-cash items			460
			(9,802)
Pro Rata Cash NOI (c)			386,746
Adjustment to normalize for intra-period acquisition volume and dispositions (d)			2,915
Normalized Pro Rata Cash NOI (c)			$	389,661

						Investing for the Long Run® | 36

---

W. P. Carey Inc.

Appendix – Second Quarter 2023

The following table presents a reconciliation from Net income from Real Estate attributable to W. P. Carey to Normalized pro rata cash NOI:

			Three Months Ended Jun. 30, 2023
Net Income from Real Estate Attributable to W. P. Carey
Net income from Real Estate attributable to W. P. Carey – as reported			$	144,686
Adjustments for Consolidated Operating Expenses
Add: Operating expenses – as reported			231,563
Less: Property expenses, excluding reimbursable tenant costs – as reported			(5,371)
Less: Operating property expenses – as reported			(26,919)
			199,273
Adjustments for Other Consolidated Revenues and Expenses:
Less: Other lease-related income – as reported			(5,040)
Less: Reimbursable property expenses – as reported			(20,523)
Add: Other income and (expenses)			65,706
Add: Provision for income taxes			10,236
			50,379
Other Adjustments:
Less: Straight-line and other leasing and financing adjustments			(19,086)
Add: Above- and below-market rent intangible lease amortization			8,824
Add: Adjustments for pro rata ownership			3,424
Less: Income from secured loans receivable			(1,188)
Adjustment to normalize for intra-period acquisition volume and dispositions (d)			2,915
Add: Property expenses, excluding reimbursable tenant costs, non-cash			434
			(4,677)
Normalized Pro Rata Cash NOI (c)			$	389,661

________

(a)Includes $1.6 million from equity method investments in self-storage operating properties.

(b)Includes $0.1 million from noncontrolling interests attributable to student housing operating properties.

(c)Pro rata cash NOI and normalized pro rata cash NOI are non-GAAP measures. See the Disclosures Regarding Non-GAAP and Other Metrics section that follows for a description of our non-GAAP measures and for details on how pro rata cash NOI and normalized pro rata cash NOI are calculated.

(d)For properties acquired and capital investments and commitments completed during the three months ended June 30, 2023, the adjustment modifies our pro rata share of cash NOI for the partial period with an amount estimated to be equivalent to the additional pro rata share of cash NOI necessary to reflect ownership for the full quarter. For properties disposed of during the three months ended June 30, 2023, the adjustment eliminates our pro rata share of cash NOI for the period.

						Investing for the Long Run® | 37

---

W. P. Carey Inc.

Appendix – Second Quarter 2023

Adjusted EBITDA, Consolidated – Last Five Quarters

In thousands.

			Three Months Ended
			Jun. 30, 2023						Mar. 31, 2023						Dec. 31, 2022						Sep. 30, 2022						Jun. 30, 2022
Net income			$	144,580					$	294,441					$	209,503					$	104,268					$	127,718
Adjustments to Derive Adjusted EBITDA (a)
Depreciation and amortization			143,548						156,409						140,749						132,181						115,080
Interest expense			75,488						67,196						67,668						59,022						46,417
Straight-line and other leasing and financing adjustments (b)			(19,086)						(15,050)						(14,766)						(14,326)						(14,492)
Provision for income taxes			10,129						15,119						6,126						8,263						6,252
Stock-based compensation expense			8,995						7,766						9,739						5,511						9,758
Above- and below-market rent intangible lease amortization			8,824						10,861						8,652						11,186						10,548
(Gain) loss on sale of real estate, net (c)			(1,808)						(177,749)						(5,845)						4,736						(31,119)
Merger and other expenses			1,419						24						2,058						17,667						1,984
Other (gains) and losses (d)			1,366						(8,100)						(97,059)						15,020						21,746
Other amortization and non-cash charges			411						404						399						349						353
Impairment charges — real estate			—						—						12,734						—						6,206
Gain on change in control of interests (e)			—						—						—						(33,931)						—
Impairment charges — Investment Management goodwill (f)			—						—						—						29,334						—
			229,286						56,880						130,455						235,012						172,733
Adjustments for Pro Rata Ownership
Real Estate Joint Ventures:
Add: Pro rata share of adjustments for equity method investments			3,013						2,050						2,076						2,124						4,329
Less: Pro rata share of adjustments for amounts attributable to noncontrolling interests			(347)						(443)						(511)						(308)						(23)
			2,666						1,607						1,565						1,816						4,306
Equity Method Investments in the Managed Programs: (g)
Less: Income from equity method investments in the Managed Programs			—						—						—						(1,512)						(59)
Add: Distributions received from equity method investments in the Managed Programs			—						—						—						535						535
			—						—						—						(977)						476
Add: Intra-period normalization of CPA:18 Merger (closed August 1, 2022) (h)			—						—						—						7,456						—
Adjusted EBITDA (i)			$	376,532					$	352,928					$	341,523					$	347,575					$	305,233

________

(a)Comprised of items that we do not consider to be part of our core operating business plan or representative of our overall long-term operating performance, based on a number of factors, including the nature of the item and/or the frequency with which it occurs. We believe that these adjustments provide a more representative view of EBITDA from our core operating business and allow for more meaningful comparisons.

(b)Straight-line rent adjustments relate to our net-leased properties subject to operating leases.

(c)Amount for the three months ended March 31, 2023 includes a gain on sale of real estate of $176.2 million recognized upon a related party of a tenant’s notice of its intention to repurchase a portfolio of 78 net-lease self-storage properties and the reclassification of the investment to net investments in sales-type leases.

(d)Primarily comprised of gains and losses on extinguishment of debt, the mark-to-market fair value of equity securities, and foreign currency exchange rate movements, as well as non-cash allowance for credit losses on loans receivable and finance leases. Amounts from period to period will not be comparable due to unpredictable fluctuations in these gains and losses.

(e)Amount for the three months ended September 30, 2022 represents gains recognized on (i) the remaining interests in four investments acquired in the CPA:18 Merger, which we had previously accounted for under the equity method, and (ii) our previously held interest in shares of CPA:18 – Global common stock in connection with the CPA:18 Merger.

(f)Amount for the three months ended September 30, 2022 represents an impairment charge recognized on goodwill within our Investment Management segment, since future Investment Management cash flows are expected to be minimal.

(g)Adjustments to include cash distributions received from the Managed Programs in place of our pro rata share of net income from our ownership in the Managed Programs.

(h)The adjustment modifies Adjusted EBITDA for the pro rata share of cash NOI for the partial period with an amount estimated to be equivalent to the additional pro rata share of cash NOI necessary to reflect ownership for the full quarter. The adjustment is reduced for advisory fees received from CPA:18 – Global during the three months ended September 30, 2022.

(i)Adjusted EBITDA is a non-GAAP measure. See the Disclosures Regarding Non-GAAP and Other Metrics section that follows for a description of our non-GAAP measures.

						Investing for the Long Run® | 38

---

W. P. Carey Inc.

Appendix – Second Quarter 2023

Adjusted EBITDA, Real Estate – Last Five Quarters

In thousands.

			Three Months Ended
			Jun. 30, 2023						Mar. 31, 2023						Dec. 31, 2022						Sep. 30, 2022						Jun. 30, 2022
Net income from Real Estate			$	144,646					$	293,292					$	210,107					$	110,715					$	123,268
Adjustments to Derive Adjusted EBITDA (a)
Depreciation and amortization			143,548						156,409						140,749						132,181						115,080
Interest expense			75,488						67,196						67,668						59,022						46,417
Straight-line and other leasing and financing adjustments (b)			(19,086)						(15,050)						(14,766)						(14,326)						(14,492)
Provision for income taxes			10,236						15,402						4,908						3,631						5,955
Stock-based compensation expense			8,995						7,766						9,739						5,511						9,758
Above- and below-market rent intangible lease amortization			8,824						10,861						8,652						11,186						10,548
(Gain) loss on sale of real estate, net (c)			(1,808)						(177,749)						(5,845)						4,736						(31,119)
Merger and other expenses			1,419						24						2,058						17,667						1,984
Other (gains) and losses (d)			890						(7,586)						(96,846)						13,960						20,155
Other amortization and non-cash charges			411						404						399						349						353
Impairment charges — real estate			—						—						12,734						—						6,206
Gain on change in control of interests (e)			—						—						—						(11,405)						—
			228,917						57,677						129,450						222,512						170,845
Adjustments for Pro Rata Ownership
Real Estate Joint Ventures:
Add: Pro rata share of adjustments for equity method investments			3,013						2,050						2,076						2,124						4,329
Less: Pro rata share of adjustments for amounts attributable to noncontrolling interests			(347)						(443)						(511)						(308)						(23)
			2,666						1,607						1,565						1,816						4,306
Add: Intra-period normalization of CPA:18 Merger (closed August 1, 2022) (f)			—						—						—						11,892						—
Adjusted EBITDA – Real Estate (g)			$	376,229					$	352,576					$	341,122					$	346,935					$	298,419

________

(a)Comprised of items that we do not consider to be part of our core operating business plan or representative of our overall long-term operating performance, based on a number of factors, including the nature of the item and/or the frequency with which it occurs. We believe that these adjustments provide a more representative view of EBITDA from our core operating business and allow for more meaningful comparisons.

(b)Straight-line rent adjustments relate to our net-leased properties subject to operating leases.

(c)Amount for the three months ended March 31, 2023 includes a gain on sale of real estate of $176.2 million recognized upon a related party of a tenant’s notice of its intention to repurchase a portfolio of 78 net-lease self-storage properties and the reclassification of the investment to net investments in sales-type leases.

(d)Primarily comprised of gains and losses on extinguishment of debt, the mark-to-market fair value of equity securities, and foreign currency exchange rate movements, as well as non-cash allowance for credit losses on loans receivable and finance leases. Amounts from period to period will not be comparable due to unpredictable fluctuations in these gains and losses.

(e)Amount for the three months ended September 30, 2022 represents a gain recognized on the remaining interests in four investments acquired in the CPA:18 Merger, which we had previously accounted for under the equity method.

(f)The adjustment modifies Adjusted EBITDA for the pro rata share of cash NOI for the partial period with an amount estimated to be equivalent to the additional pro rata share of cash NOI necessary to reflect ownership for the full quarter.

(g)Adjusted EBITDA is a non-GAAP measure. See the Disclosures Regarding Non-GAAP and Other Metrics section that follows for a description of our non-GAAP measures.

						Investing for the Long Run® | 39

---

W. P. Carey Inc.

Appendix – Second Quarter 2023

Adjusted EBITDA, Investment Management – Last Five Quarters

In thousands.

			Three Months Ended
			Jun. 30, 2023						Mar. 31, 2023						Dec. 31, 2022						Sep. 30, 2022						Jun. 30, 2022
Net (loss) income from Investment Management			$	(66)					$	1,149					$	(604)					$	(6,447)					$	4,450
Adjustments to Derive Adjusted EBITDA (a)
Other (gains) and losses (b)			476						(514)						(213)						1,060						1,591
(Benefit from) provision for income taxes			(107)						(283)						1,218						4,632						297
Impairment charges — Investment Management goodwill (c)			—						—						—						29,334						—
Gain on change in control of interests (d)			—						—						—						(22,526)						—
			369						(797)						1,005						12,500						1,888
Adjustments for Pro Rata Ownership
Equity Method Investments in the Managed Programs: (e)
Less: Income from equity method investments in the Managed Programs			—						—						—						(1,512)						(59)
Add: Distributions received from equity method investments in the Managed Programs			—						—						—						535						535
			—						—						—						(977)						476
Add: Intra-period normalization of CPA:18 Merger (closed August 1, 2022) (f)			—						—						—						(4,436)						—
Adjusted EBITDA – Investment Management (g)			$	303					$	352					$	401					$	640					$	6,814

________

(a)Comprised of items that we do not consider to be part of our core operating business plan or representative of our overall long-term operating performance, based on a number of factors, including the nature of the item and/or the frequency with which it occurs. We believe that these adjustments provide a more representative view of EBITDA from our core operating business and allow for more meaningful comparisons.

(b)Primarily comprised of gains and losses from foreign currency exchange rate movements and marketable securities. Amounts from period to period will not be comparable due to unpredictable fluctuations in these gains and losses.

(c)Amount for the three months ended September 30, 2022 represents an impairment charge recognized on goodwill within our Investment Management segment, since future Investment Management cash flows are expected to be minimal.

(d)Amount for the three months ended September 30, 2022 represents a gain recognized on our previously held interest in shares of CPA:18 – Global common stock in connection with the CPA:18 Merger.

(e)Adjustments to include cash distributions received from the Managed Programs in place of our pro rata share of net income from our ownership in the Managed Programs.

(f)The adjustment reduces Adjusted EBITDA for advisory fees received from CPA:18 – Global during the three months ended September 30, 2022.

(g)Adjusted EBITDA is a non-GAAP measure. See the Disclosures Regarding Non-GAAP and Other Metrics section that follows for a description of our non-GAAP measures. 

						Investing for the Long Run® | 40

---

W. P. Carey Inc.

Appendix – Second Quarter 2023

Disclosures Regarding Non-GAAP and Other Metrics

Non-GAAP Financial Disclosures

FFO and AFFO

Due to certain unique operating characteristics of real estate companies, as discussed below, NAREIT, an industry trade group, has promulgated a non-GAAP measure known as FFO, which we believe to be an appropriate supplemental measure, when used in addition to and in conjunction with results presented in accordance with GAAP, to reflect the operating performance of a REIT. The use of FFO is recommended by the REIT industry as a supplemental non-GAAP measure. FFO is not equivalent to, nor a substitute for, net income or loss as determined under GAAP.

We define FFO, a non-GAAP measure, consistent with the standards established by the White Paper on FFO approved by the Board of Governors of NAREIT, as restated in December 2018. The White Paper defines FFO as net income or loss computed in accordance with GAAP, excluding gains or losses from sales of property, impairment charges on real estate or other assets incidental to the company’s main business, gains or losses on changes in control of interests in real estate and depreciation and amortization from real estate assets; and after adjustments for unconsolidated partnerships and jointly owned investments. Adjustments for unconsolidated partnerships and jointly owned investments are calculated to reflect FFO.

We also modify the NAREIT computation of FFO to adjust GAAP net income for certain non-cash charges, such as amortization of real estate-related intangibles, deferred income tax benefits and expenses, straight-line rent and related reserves, other non-cash rent adjustments, non-cash allowance for credit losses on loans receivable and finance leases, stock-based compensation, non-cash environmental accretion expense, amortization of discounts and premiums on debt and amortization of deferred financing costs. Our assessment of our operations is focused on long-term sustainability and not on such non-cash items, which may cause short-term fluctuations in net income but have no impact on cash flows. Additionally, we exclude non-core income and expenses, such as gains or losses from extinguishment of debt and merger and acquisition expenses. We also exclude realized and unrealized gains/losses on foreign currency exchange rate movements (other than those realized on the settlement of foreign currency derivatives), which are not considered fundamental attributes of our business plan and do not affect our overall long-term operating performance. We refer to our modified definition of FFO as AFFO. We exclude these items from GAAP net income to arrive at AFFO as they are not the primary drivers in our decision-making process and excluding these items provides investors a view of our portfolio performance over time and makes it more comparable to other REITs that are currently not engaged in acquisitions, mergers and restructuring, which are not part of our normal business operations. AFFO also reflects adjustments for unconsolidated partnerships and jointly owned investments. We use AFFO as one measure of our operating performance when we formulate corporate goals, evaluate the effectiveness of our strategies and determine executive compensation.

We believe that AFFO is a useful supplemental measure for investors to consider as we believe it will help them to better assess the sustainability of our operating performance without the potentially distorting impact of these short-term fluctuations. However, there are limits on the usefulness of AFFO to investors. For example, impairment charges and unrealized foreign currency exchange rate losses that we exclude may become actual realized losses upon the ultimate disposition of the properties in the form of lower cash proceeds or other considerations. We use our FFO and AFFO measures as supplemental financial measures of operating performance. We do not use our FFO and AFFO measures as, nor should they be considered to be, alternatives to net income computed under GAAP, or as alternatives to net cash provided by operating activities computed under GAAP, or as indicators of our ability to fund our cash needs.

Same-Store Pro Rata Rental Income

Same-store pro rata rental income is a non-GAAP financial measure that is intended to reflect the performance of our net leased properties. We define this as contractual rents from our leased properties. Same-store rental income excludes reimbursable tenant costs, amortization of intangibles and straight-line rent adjustments that are included in GAAP lease revenues. We present same-store rental income on a pro rata basis to account for our share of income related to unconsolidated joint ventures and noncontrolling interests. We believe that same-store pro rata rental income is a helpful measure that both investors and management can use to evaluate the financial performance of our leased properties. Same-store pro rata rental income should not be considered as an alternative to lease revenues as an indication of our financial performance or to cash flows as a measure of liquidity or our ability to fund all needs. The method by which we calculate and present same-store rental income and/or same-store pro rata rental income may not be directly comparable to the way other REITs present such metrics.

Pro Rata Cash NOI

Cash net operating income (“cash NOI”) is a non-GAAP financial measure that is intended to reflect the performance of our net leased and operating properties. We define cash NOI as cash rents from our leased and operating properties less non-reimbursable property expenses. Cash NOI excludes amortization of intangibles and straight-line rent adjustments that are included in GAAP lease revenues. We present cash NOI on a pro rata basis (“pro rata cash NOI”) to account for our share of income related to unconsolidated joint ventures and noncontrolling interests. We believe that pro rata cash NOI is a helpful measure that both investors and management can use to evaluate the financial performance of our leased and operating properties and it allows for comparison of our operating performance between periods and to other REITs. Pro rata cash NOI should not be considered as an alternative to net income as an indication of our financial performance or to cash flows as a measure of liquidity or our ability to fund all needs. The method by which we calculate and present cash NOI and/or pro rata cash NOI may not be directly comparable to the way other REITs present such metrics.

						Investing for the Long Run® | 41

---

W. P. Carey Inc.

Appendix – Second Quarter 2023

Normalized Pro Rata Cash NOI

Normalized pro rata cash NOI is pro rata cash NOI as defined above adjusted primarily to exclude our pro rata share of cash NOI from properties disposed of during the most recent quarter and to include a full quarter of pro rata cash NOI related to properties acquired or capital investments and commitments completed during the period, as applicable. We believe this measure provides a helpful representation of our net operating income from our in-place leased and operating properties.

Adjusted EBITDA

We believe that EBITDA is a useful supplemental measure to investors and analysts for assessing the performance of our business segments because (i) it removes the impact of our capital structure from our operating results and (ii) it is helpful when comparing our operating performance to that of companies in our industry without regard to such items, which can vary substantially from company to company. Adjusted EBITDA as disclosed represents EBITDA, modified to include other adjustments to GAAP net income for certain non-cash charges, such as impairments, non-cash rent adjustments and unrealized gains and losses from our hedging activity. Additionally, we exclude gains and losses on sale of real estate, which are not considered fundamental attributes of our business plans and do not affect our overall long-term operating performance. We exclude these items from adjusted EBITDA as they are not the primary drivers in our decision-making process. Adjusted EBITDA reflects adjustments for unconsolidated partnerships and jointly owned investments. Our assessment of our operations is focused on long-term sustainability and not on such non-cash and non-core items, which may cause short-term fluctuations in net income but have no impact on cash flows. We believe that adjusted EBITDA is a useful supplemental measure to investors and analysts, although it does not represent net income that is computed in accordance with GAAP. Accordingly, adjusted EBITDA should not be considered as an alternative to net income or as an indicator of our financial performance. EBITDA and adjusted EBITDA as calculated by us may not be comparable to similarly titled measures of other companies.

Cash Interest Expense

Cash interest expense is a non-GAAP financial measure equal to interest expense calculated in accordance with GAAP, plus capitalized interest and other non-cash amortization expense, less amortization of deferred financing costs and debt premiums/discounts, adjusted for pro rata ownership. See the definition of cash interest expense coverage ratio below for a reconciliation of cash interest expense to its most directly compared GAAP measure, interest expense.

Cash Interest Expense Coverage Ratio

Cash interest expense coverage ratio is a non-GAAP financial measure representing the ratio of Adjusted EBITDA to cash interest expense on a trailing 12 months basis. We believe this ratio is useful to investors as a supplemental measure of our ability to satisfy fixed interest expense obligations. Cash interest expense for the trailing 12 months as of June 30, 2023 is equal to $249.2 million, comprised of interest expense calculated in accordance with GAAP ($269.4 million), plus capitalized interest ($0.4 million) and other non-cash amortization expense ($0.1 million), less amortization of deferred financing costs and debt premiums/discounts ($21.8 million), adjusted for pro rata ownership ($1.4 million).

Other Metrics

Pro Rata Metrics

This supplemental package contains certain metrics prepared on a pro rata basis. We refer to these metrics as pro rata metrics. We have certain investments in which our economic ownership is less than 100%. On a full consolidation basis, we report 100% of the assets, liabilities, revenues and expenses of those investments that are deemed to be under our control or for which we are deemed to be the primary beneficiary, even if our ownership is less than 100%. Also, for all other jointly owned investments, which we do not control, we report our net investment and our net income or loss from that investment. On a pro rata basis, we generally present our proportionate share, based on our economic ownership of these jointly owned investments, of the assets, liabilities, revenues and expenses of those investments. Multiplying each of our jointly owned investments’ financial statement line items by our percentage ownership and adding or subtracting those amounts from our totals, as applicable, may not accurately depict the legal and economic implications of holding an ownership interest of less than 100% in our jointly owned investments.

ABR

ABR represents contractual minimum annualized base rent for our net-leased properties and reflects exchange rates as of June 30, 2023. If there is a rent abatement, we annualize the first monthly contractual base rent following the free rent period. ABR is not applicable to operating properties and is presented on a pro rata basis.

						Investing for the Long Run® | 42