W. P. Carey Reports Strong Investment Activity and Improves Tenant Credit Outlook
News related to:W. P. Carey Inc · 2 min read
W. P. Carey Inc., a leading net lease real estate investment trust, has announced a business update on its investment activities and tenant credit outlook for 2026. The company currently has visibility into over $1.9 billion of investment volume for the year, marking a strong start to its financial year.
W. P. Carey has been actively pursuing investment opportunities, with approximately $1.4 billion of investment volume completed year to date. The company expects additional transactions to close within the year, contributing to its overall investment volume. Capital projects scheduled to deliver in 2026 are also part of the company’s current investment pipeline.
In terms of tenant credit, W. P. Carey has seen improvements in its outlook for rent loss. This positive development is attributed to the receipt of August rent from Hellweg and the expectation of collecting additional rent during the second half of 2026. The company also continues to benefit from bank guarantees covering up to three months of lease-related damages associated with Hellweg.
W. P. Carey has made significant progress in addressing the Hellweg situation. The company has executed binding lease agreements for nine of the 11 Hellweg stores, representing approximately $9.8 million, or 64%, of current Hellweg annual base rent (ABR). These new leases are expected to commence between late 2026 and mid-2027. Two stores, totaling approximately $1.2 million, or 8% of Hellweg ABR, are currently in the final stages of lease negotiations and are expected to be signed by the end of September. The remaining five stores, representing approximately $4.3 million, or 28% of Hellweg ABR, are expected to be sold by the end of 2026.
The overall rent recapture for the 11 stores being re-tenanted is expected to be close to 100% of current Hellweg rent, contributing to the company’s improved outlook. Jason Fox, W. P. Carey’s CEO, expressed confidence in the company’s ability to achieve its financial goals for the year. He stated, “Investment activity remains strong, and we believe we are well-positioned to end the year in the top half of our current investment volume guidance range. We’ve made further progress addressing Hellweg, which, together with improved visibility into expected Hellweg rent over the second half of the year, has improved our outlook for rent loss this year. As a result, we’re confident that Adjusted Funds From Operations (AFFO) is on track to end the year above the midpoint of our current guidance range.”
W. P. Carey Inc. remains focused on investing primarily in single-tenant industrial, warehouse, and retail properties located in the U.S. and Europe. The company’s portfolio includes 1,748 net lease properties covering approximately 188 million square feet as of June 30, 2026. With offices in New York, London, Amsterdam, and Dallas, W. P. Carey continues to pursue opportunities that align with its strategic goals.