W. P. Carey Announces Two Industrial Investments Totaling $67 Million

Rhea-AI Summary

W. P. Carey Inc. (NYSE: WPC) announced two significant industrial investments totaling $67 million, covering approximately 580,600 square feet. The acquisitions include a $53 million logistics site leased to Comprehensive Logistics Co., serving major clients like Ford and General Motors, with a lease term of about 10.5 years, and a $14 million leaseback of a food production site with a 25-year extended lease term. W. P. Carey continues to expand its portfolio with high-quality properties located in key markets.

Positive

• Acquisition of a $53 million logistics site leased to industry leader Comprehensive Logistics Co., enhancing portfolio quality.
• Increased production capacity for existing tenant through $14 million leaseback in Arkansas, potentially driving future revenue.

Negative

• None.

NEW YORK, April 29, 2021 /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 two industrial investments totaling $67 million and covering approximately 580,600 square feet. The investments comprise operationally-critical properties triple-net leased to industry-leading tenants with a weighted-average lease term of approximately 13.5 years.

The investments include:

•  $53 million acquisition of a 487,600-square-foot logistics site comprising two high-quality buildings net leased to Comprehensive Logistics Co., LLC, a leading third-party logistics provider for the automotive and other industrial industries. The company serves numerous OEM and Tier I clients, including Ford, General Motors, Paccar and General Electric Appliance. The highly-fungible site is located in a supply-constrained submarket of Detroit in close proximity to both Ford's largest production plant and the I-75 highway. The site comprises two buildings, including a Class-A warehouse that provides "just-in-time" warehouse management services for Ford and a separate warehouse currently housing glass products for a Tier I supplier to Ford. The site is triple-net leased with fixed annual rent escalations and for a remaining term of approximately 10.5 years.
  
  
• $14 million follow-on sale-leaseback of a 93,000-square-foot food production and distribution site net leased to one of the largest ice cream and beverage brands in the U.S., which is a current tenant of W. P. Carey. Located in Arkansas, the site will enable the tenant to increase its production volume, in-source previously co-manufactured capacity and offer new novelty products to its customers. The facility was added to the existing triple-net master lease for the tenant's primary production site in the Northeastern U.S., with the lease term extended to 25 years to be coterminous, and with fixed annual rent escalations.

Andrés Dallal, Executive Director, Investments, W. P. Carey, said: "We are thrilled to build on our recent momentum and add two high-quality industrial facilities to our portfolio. Our reputation, relationships and unparalleled experience within the net lease sector continue to position us as a leading partner for sellers. We look forward to growing our relationships with our new and existing tenants."

W. P. Carey Inc.

W. P. Carey ranks among the largest net lease REITs with an enterprise value of approximately $19 billion and a diversified portfolio of operationally-critical commercial real estate that includes 1,243 net lease properties covering approximately 144 million square feet as of December 31, 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. 
www.wpcarey.com

This press release contains 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.

W. P. Carey Inc. Contacts:

Press Contact:
Anna McGrath
W. P. Carey Inc.
+1 212-492-1166 
amcgrath@wpcarey.com

Institutional Investors:
Peter Sands
+1 212-492-1110
institutionalir@wpcarey.com

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SOURCE W. P. Carey Inc.

FAQ

What are W. P. Carey's recent investments announced on April 29, 2021?

W. P. Carey announced two industrial investments totaling $67 million covering 580,600 square feet, including a logistics site and a food production facility.

What is the significance of the $53 million investment in the logistics site?

The $53 million investment in the logistics site enhances W. P. Carey's portfolio with a long-term lease to Comprehensive Logistics Co., a key player in the automotive industry.

How does the $14 million investment impact W. P. Carey’s existing tenant?

The $14 million follow-on sale-leaseback allows the tenant to increase production capacity and extend the lease term to 25 years, benefiting W. P. Carey.

What is W. P. Carey's enterprise value mentioned in the press release?

W. P. Carey's enterprise value is approximately $19 billion, reflecting its position as one of the largest net lease REITs.