WPCHIGH SIGNALFINANCIAL10-K

WPC executed a major portfolio transformation by divesting most of its self-storage properties while experiencing a severe cash decline and rising debt costs.

The company sold 63 self-storage properties during 2025, reducing operating properties from 84 to 16, indicating either a strategic pivot away from operating assets or potential liquidity needs. The simultaneous 76% cash decline and 33% increase in interest expense suggests either poor timing of asset sales relative to debt refinancing or underlying financial stress requiring asset liquidation.

Comparing 2026-02-11 vs 2025-02-12View on EDGAR →
FINANCIAL ANALYSIS

WPC's financial profile deteriorated significantly with cash plummeting 76% to $155M while interest expense surged 33% to $292M, creating a concerning liquidity dynamic. Operating cash flow declined 30% to $1.3B, indicating weaker operational performance despite or because of the major asset divestiture program. The combination of severely reduced cash reserves, higher borrowing costs, and lower operating cash generation signals potential financial distress or at minimum a challenging capital allocation environment for the REIT.

FINANCIAL STATEMENT CHANGES
Cash & Equivalents
Balance Sheet
-75.7%
$640.4M$155.3M

Cash declined 75.7% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Interest Expense
P&L
+33.2%
$219.2M$291.9M

Interest expense surged 33.2% — significant debt increase or rising rates materially impacting earnings.

Operating Cash Flow
Cash Flow
-30%
$1.8B$1.3B

Operating cash flow fell 30% — earnings quality concerns; investigate working capital changes and non-cash items.

LANGUAGE CHANGES
NEW — 2026-02-11
PRIOR — 2025-02-12
ADDED
As of February 6, 2026, there were 219,145,876 shares of Common Stock of registrant outstanding.
Our portfolio is comprised of 1,682 properties, net-leased to 371 tenants in 25 countries.
As of that same date, our portfolio included 16 operating properties, comprised of 11 self-storage properties, four hotels, and one student housing property.
During the year ended December 31, 2025, we sold 63 self-storage operating properties.
Real Estate Evaluation We review and evaluate the physical condition of the property and the market in which it is located.
Carey 2025 10-K 4 Asset Management We believe that proactive asset management is essential to maintaining and enhancing property values.
We seek to replace short-term financing with more permanent forms of capital, including, but not limited to, common stock (including common stock issued through our ATM Program), unsecured forms of debt such as public bonds, private placements and bank debt, and proceeds from asset sales.
We may choose to issue unsecured bonds, notes, and bank debt denominated in foreign currencies in part to fund international acquisitions and mitigate our exposure to fluctuations in exchange rates.
While we seek to maintain a predominantly fixed-rate debt profile, a well-staggered maturity ladder, and access to a wide variety of capital sources, and expect to continue being rated investment grade, this places limitations on the amount of leverage acceptable in our capital structure and as a result there can be no assurance that we will be able to do so in the future.
Our Portfolio At December 31, 2025, our portfolio had the following characteristics: Number of properties full or partial ownership interests in 1,682 net-leased properties, 11 self-storage operating properties, four operating hotels, and one student housing operating property; Total net-leased square footage approximately 183 million; and Net-lease occupancy rate approximately 98.0%.
REMOVED
As of February 7, 2025, there were 218,849,396 shares of Common Stock of registrant outstanding.
Our portfolio is comprised of 1,555 properties, net-leased to 355 tenants in 26 countries.
As of that same date, our portfolio included 84 operating properties, comprised of 78 self-storage properties, four hotels, and two student housing properties.
On August 1, 2022, one of our former investment programs, Corporate Property Associates 18 Global Incorporated ( CPA:18 Global ), merged with and into one of our indirect subsidiaries (the CPA:18 Merger ), which added approximately $2.2 billion of real estate assets to our portfolio.
Following the close of the CPA:18 Merger, our advisory agreements with CPA:18 Global were terminated ( Note 4 ).
Effective January 1, 2024, we no longer separately analyze our business between real estate operations and investment management operations, and instead view the business as one reportable segment, since our investment management operations have been determined to be both quantitatively and qualitatively insignificant to the Company s business.
Our business is characterized as investing in operationally-critical, single-tenant commercial real estate properties that are leased on a long-term basis, from which we earn lease revenues.
These economic characteristics are similar across various property types, geographic locations, and industries in which our tenants operate and therefore considered one operating segment.
As a result of this change, we have conformed prior period segment information to reflect how we currently view our business ( Note 1 ).
Carey 2024 10-K 4 Real Estate Evaluation We review and evaluate the physical condition of the property and the market in which it is located.
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