A real estate investment trust that owns and rents out long-term net-leased industrial, warehouse, and retail properties across the U.S. and Europe, through sale-leaseback deals where a company sells a building and leases it back. It was founded in 1973 by William Polk Carey, who pioneered the pooled net-lease model. As a Princeton student he bought refrigerators and leased them to dorm-mates for a fee—an early taste of the leasing business he'd build his career on.
AFFO rose 8% to $305.4M as a $110.6M swing in Lineage shares drove net income to $185.4M.
swung from $51.2M to $185.4M, driven almost entirely by non-cash gains on Lineage shares and an equity investment sale. rose 12.5% to $409.7M and increased 8% to $305.4M as $1.3B in recent acquisitions rebuilt earnings power, though higher from a €1.0B debt offering provided a partial offset. The portfolio is growing again, but the bottom line now depends heavily on the mark-to-market value of a single stock.
Key takeaways
rose to $185.4M from $51.2M a year ago, propelled by a $110.6M swing to an on Lineage shares and a $49.9M gain from an 's property sale — both non-cash items.
, which strips out those non-cash gains and other items, rose 8% to $305.4M, reflecting the cash earnings from $1.3B in new real estate investments and contractual rent escalations, partly offset by higher .
rose 12.5% to $409.7M, driven by recently acquired net-leased properties and rent escalations, partially offset by the sale of self-storage operating properties.
Section summaries
Management's Discussion and Analysis
Net income surged to $185.4M in Q2 2026, driven by non-cash gains on Lineage shares and a $49.9M gain from an equity investment sale.
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Total revenues rose 7% to $461.1M in Q2 2026, primarily from $1.3B in new real estate investments and rent escalations, partially offset by the sale of self-storage operating properties.
The company issued a €1.0B senior notes offering and prepaid $350M of 4.250% notes, pushing average debt balances to $9.1B with a weighted-average interest rate of 3.2%.
fell 17.5% to $333.1M, while cash and equivalents dropped 61.6% to $163.5M as acquisition spending and debt management drew down balances.
Liquidity remains substantial with $1.9B available on the and $690.7M in available , against $353.6M in scheduled debt payments for the rest of 2026.
What changed
The Q1 FY2026 filing flagged the refinancing of the $350M senior note maturity in October 2026 as a key watch item. This quarter, the company addressed near-term maturities by issuing a €1.0B senior notes offering and prepaying $350M of 4.250% notes, extending its maturity profile but pushing average debt balances to $9.1B.
Q1 FY2026 asked whether growth could sustain near the 12% rate. It moderated to 8% this quarter, as higher from the debt refinancing and forward equity settlements partially offset accretive investment activity.
The Q1 FY2026 watch item on annualized base rent growth is partially answered: rose 12.5% to $409.7M, indicating the $1.3B in recent acquisitions continues to flow through to the top line.
Foreign-currency sensitivity rose slightly, with a 1% move in the EUR now changing projected 12-month net cash flow by $2.5M, up from $2.3M at year-end 2025.
What to watch
Whether growth can re-accelerate toward the 12% rate seen in Q1 now that the €1.0B debt offering is complete and has stepped up to a new run rate.
The mark-to-market value of Lineage shares, which swung by $110.6M this quarter and has become the single largest driver of earnings volatility.
The pace and capitalization rates of follow-on acquisitions, which will determine whether the $1.3B in recent investments continues to grow or whether higher debt costs compress spreads.
Movement in the EUR/USD exchange rate, given that a 1% shift now changes projected 12-month net cash flow by $2.5M and the company just issued €1.0B in new debt, increasing its euro exposure.
attributable to W. P. Carey jumped to $185.4M from $51.2M, largely due to a $110.6M swing in non-cash unrealized gains on Lineage shares and a $49.9M gain from an 's property sale.
increased 8% to $305.4M, reflecting accretive investment activity, partly offset by higher from debt refinancings and forward equity settlements.
The company completed a €1.0B senior notes offering and prepaid $350M of 4.250% notes, while average debt balances rose to $9.1B with a weighted-average interest rate of 3.2%.
Liquidity remains strong with $163.5M in cash, $1.9B available on the , and $690.7M in available forward equity proceeds, against $353.6M in scheduled debt payments for the rest of 2026.