W. P. Carey Inc., a real estate investment trust focused on single-tenant, net-lease commercial real estate, including self-storage facilities, announced its 2025 investment volume, which reached $2.1 billion. The company also provided an update on its investment, disposition and capital-markets activities for the year, according to a press release.
W.P. Carey completed record investment volume last year at a weighted-average initial-cash capitalization rate of approximately 7.6% and an estimated average yield of about 9.2%, reflecting contractual rent escalations over the terms of the leases. Its single-tenant warehouse and industrial properties comprised approximately 68% of the company’s full-year investment volume, while retail properties comprised 22%. From a geographic perspective, 69% of 2025 investment volume was in the U.S. and 26% in Europe, the release stated.
During the fourth quarter, W.P. Carey completed investment volume totaling about $625 million, including the $322 million acquisition of a portfolio of 10 fitness facilities in Eastern and Central U.S., net leased to Life Time Fitness.
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The company sold 44 properties for gross proceeds of about $500 million, bringing total gross disposition proceeds for the 2025 full year to $1.5 billion. Full-year disposition activity included the sale of 63 self-storage properties for gross proceeds totaling approximately $785 million, including 31 sold during the fourth quarter for gross proceeds totaling $325 million. At year-end, W. P. Carey owned 11 self-storage facilities, which it anticipates selling during the first half of 2026. The sales will fund the company’s new investments, the release stated.
W.P. Carey also sold 6.3 million shares of common stock last year under its at-the-market program, subject to forward sale agreements, at a weighted-average gross price of $67.53 per share. This represents total gross proceeds of about $423 million, which currently remains available for settlement. Full-year sales of common stock subject to forward sale agreements included 3.5 million shares sold during the fourth quarter, representing total gross proceeds around $235 million.
The company experienced rent loss from tenant-credit events totaling about $6 million, compared to its most recently disclosed assumption of about $10 million.
“2025 marked a record-high year for investment volume, closing $2.1 billion of deals funded primarily through accretive sales of non-core assets, highlighted by our effective exit from operating self-storage,” said CEO Jason Fox. “With a strong pipeline of high-quality opportunities to start 2026 and the vast majority of our anticipated equity needs for the year already accounted for—including around $420 million of forward equity, several-hundred million dollars of planned accretive asset sales and $250 to $300 million of expected retained cash flow—we're well-positioned to continue delivering attractive [adjusted funds from operations] growth.”
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Based in New York, W. P. Carey has a portfolio comprising 183 million square feet of commercial real estate. With offices in Amsterdam, Dallas, London and New York, it remains focused on investing primarily in single-tenant, industrial, warehouse and retail properties in Europe and the U.S.
Source: PR Newswire, W. P. Carey Announces Record Full-Year Investment Volume of $2.1 Billion and Provides Business Update
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