W. P. Carey Announces Industrial Investments Totaling $85 Million

Rhea-AI Summary

W. P. Carey Inc. (NYSE:WPC) announced the completion of two significant investments in October 2020, totaling approximately $85 million and encompassing over 1.2 million square feet. These include a $51 million sale-leaseback of three manufacturing facilities and a $34 million sale-leaseback of a refrigerated food processing facility. With these transactions, the company's year-to-date investment volume reaches approximately $600 million. The new properties are triple-net leased to leading tenants with a weighted average lease term of 20 years, indicating a stable revenue outlook.

Positive

• Completed investments totaling approximately $85 million in October 2020.
• Year-to-date investment volume reaches approximately $600 million.
• New properties include four industrial facilities, leased to industry-leading tenants.
• Triple-net leases with a weighted average term of 20 years ensure stable cash flow.
• Investments showcase strategic locations in markets with housing growth dynamics.

Negative

• None.

NEW YORK, Nov. 2, 2020 /PRNewswire/ -- W. P. Carey Inc. (NYSE:WPC), a leading net lease REIT specializing in corporate sale-leasebacks, build-to-suits and the acquisition of single-tenant net lease properties, today announced the completion of two investments in October 2020 totaling approximately $85 million and over 1.2 million square feet, bringing total year-to-date investment volume to approximately $600 million. The investments comprise four operationally-critical industrial properties triple-net leased to industry-leading tenants with a weighted average lease term of 20 years.

The investments include:

• $51 million sale-leaseback of three manufacturing facilities and adjacent laydown-yards comprising 994,000 square feet, net leased to a leading full-service carpenter contractors, material supplier and housing component manufacturer in the U.S. The tenant has been in operation for nearly 65 years and has continued to demonstrate strong performance from its diverse product offerings and long-standing customer relationships, including most of the top national builders. The facilities represent the tenant's entire manufacturing operations and are strategically located in markets with strong underlying housing growth dynamics and rail access in Florida, Illinois and North Carolina. The assets are triple-net leased under a 20-year master lease with fixed annual rent escalations.
• $34 million sale-leaseback of a 208,000-square-foot refrigerated food processing and distribution facility, net leased to the leading distributor of specialty produce in the Midwest. Since acquiring the facility in 2018, the tenant has invested approximately $20 million into the asset which serves as the company's sole location. The facility contains 60 percent cooler and three percent freezer space and is designed with five different climate zones to accommodate various temperature requirements for produce. As demand for online grocery continues to rise, refrigerated facilities such as these with access to key transportation routes and proximity to end consumers continue to be positioned to perform well. The facility is located near the Minneapolis-St. Paul metropolitan area in Minnesota and is triple-net leased for a term of 20 years with fixed annual rent escalations.

Zachary Pasanen, Executive Director, Investments, W. P. Carey said: "As companies continue to seek alternative sources of capital to support their strategic growth plans now and beyond COVID-19, sale-leasebacks remain a cost-effective, long-term solution for those that own their corporate real estate. In our latest investments, we were able to execute on a tight timeframe and provide certainty of close to meet the needs of both companies due to a combination of our longstanding presence in the sale-leaseback market, local market expertise and ample liquidity. We are delighted to welcome our newest tenants to our growing portfolio and look forward to deepening our partnership with them."

W. P. Carey Inc.
W. P. Carey ranks among the largest net lease REITs with an enterprise value of approximately $18 billion and a diversified portfolio of operationally-critical commercial real estate that includes 1,215 net lease properties covering approximately 142 million square feet as of September 30, 2020. For nearly five decades, the company has invested in high-quality single-tenant industrial, warehouse, office, retail and self-storage properties subject to long-term net leases with built-in rent escalators. Its portfolio is located primarily in the U.S. and Northern and Western Europe and is well-diversified by tenant, property type, geographic location and tenant industry.

This press release may contain forward-looking statements within the meaning of U.S. Federal securities laws. A number of factors could cause W. P. Carey's actual results, performance or achievement to differ materially from those anticipated. Among those risks, trends and uncertainties are the general economic climate, including the continuing impact of the COVID-19 pandemic; the supply of and demand for commercial properties; interest rate levels; and other risks associated with the acquisition and ownership of properties, including risks that the tenants will not pay rent, or that costs may be greater than anticipated. For further information on factors that could impact W. P. Carey, reference is made to its filings with the U.S. Securities and Exchange Commission.

Institutional Investors:
Peter Sands
W. P. Carey Inc.
212-492-1110
institutionalir@wpcarey.com

Press Contact:
Guy Lawrence
Ross & Lawrence
212-308-3333
gblawrence@rosslawpr.com

 

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SOURCE W. P. Carey Inc.

FAQ

What is the recent investment by WPC in October 2020?

W. P. Carey announced two investments totaling approximately $85 million in October 2020.

How much has WPC invested year-to-date in 2020?

W. P. Carey has invested approximately $600 million year-to-date in 2020.

What type of properties did WPC acquire in October 2020?

W. P. Carey acquired four operationally-critical industrial properties.

What is the lease term for properties acquired by WPC?

The properties have a weighted average lease term of 20 years.

Who are the tenants of the properties acquired by WPC?

The properties are leased to industry-leading tenants, including a top distributor of specialty produce.