Earnings release
Page 1
Exhibit 99.1 W. P. Carey Announces Third Quarter 2026 Financial Results New York, NY – October 27, 2026 – W. P. Carey Inc. (NYSE: WPC) (W. P. Carey or the Company), a net lease real estate investment trust, today reported its financial results for the third quarter ended September 30, 2026. Financial Highlights 2026 Third Quarter Net income attributable to W. P. Carey (millions) $141.0 Diluted earnings per share $0.61 AFFO (millions) $308.2 AFFO per diluted share $1.33 • Raising and narrowing 2026 AFFO guidance range to between $5.23 and $5.29 per diluted share, implying 5.8% year-over-year growth at the midpoint • Raising the low end of the range for the full-year investment volume assumption by $100 million, narrowing it to between $1.8 billion and $2.1 billion • Third quarter cash dividend of $0.950 per share, equivalent to an annualized dividend rate of $3.80 per share Real Estate Portfolio • Investment volume of $1.6 billion completed year to date, including $181.9 million during the third quarter and $143.2 million subsequent to quarter end • Active capital investments and commitments of $95.2 million scheduled to be completed in the 2026 fourth quarter • Gross disposition proceeds of $273.2 million during the first nine months of 2026, including $27.0 million during the third quarter • Contractual same-store rent growth of 2.6% year over year Balance Sheet and Capitalization • Equity – ◦ Settled a portion of outstanding forward sale agreements during the third quarter for net proceeds totaling approximately $150 million ◦ At the end of the third quarter approximately $538 million of equity subject to forward sale agreements remained available for settlement • Debt – ◦ Issued $350 million of 5.200% Senior Unsecured Notes due 2036, with proceeds used to prepay $350 million of 4.250% Senior Unsecured Notes due October 2026 W. P. Carey Inc. 9/30/2026 Earnings Release 8-K – 1
Page 2
MANAGEMENT COMMENTARY “We’ve executed at a high level over the first nine months, with investment activity near record levels, strong portfolio performance and best-in-class rent growth all supporting our expectation that AFFO per share growth will approach 6% this year,” said Jason Fox, Chief Executive Officer. “Even though sharply higher interest rates have added some uncertainty to the transaction market, we’re confident full-year investment volume will remain well within our guidance range. We’re raising the bottom end of that range and continue to see a path to the top half. “As we look ahead to next year, we’re encouraged by the repricing we’re starting to see. If that trend continues, we would expect to see increasingly attractive opportunities to put the substantial capital we’ve raised to work. Combined with the strength of our internal growth and current dividend yield, we believe we’re well positioned to continue delivering attractive total returns to our shareholders.” QUARTERLY FINANCIAL RESULTS Revenues • Revenues, including reimbursable costs, for the 2026 third quarter totaled $468.3 million, up 8.6% from $431.3 million for the 2025 third quarter. ◦ Lease revenues increased due primarily to net investment activity. ◦ Operating property revenues decreased due primarily to the sale of the Company’s self-storage operating portfolio, comprising the sale of 63 properties in 2025 and 11 during the 2026 first quarter. Net Income Attributable to W. P. Carey • Net income attributable to W. P. Carey for the 2026 third quarter was $141.0 million, unchanged from the 2025 third quarter. A lower gain on sale of real estate was substantially offset by the accretive impact of net investment activity and lower impairment charges. Adjusted Funds from Operations (AFFO) • AFFO for the 2026 third quarter was $1.33 per diluted share, up 6.4% from $1.25 per diluted share for the 2025 third quarter, primarily reflecting accretive net investment activity and rent escalations, partly offset by the settlement of forward equity. Note: Further information concerning AFFO, which is a non-GAAP supplemental performance metric, is presented in the accompanying tables and related notes. Dividend • On September 18, 2026, the Company reported that its Board of Directors increased its quarterly cash dividend to $0.950 per share, equivalent to an annualized dividend rate of $3.80 per share, representing a 4.4% increase compared to the 2025 third quarter. The dividend was paid on October 15, 2026 to shareholders of record as of September 30, 2026. W. P. Carey Inc. 9/30/2026 Earnings Release 8-K – 2
Page 3
AFFO GUIDANCE • The Company’s AFFO per diluted share guidance and key underlying assumptions have been updated as follows: Updated2026 Guidance Prior2026 Guidance AFFO per diluted share $5.23 – $5.29 $5.19 – $5.27 Investment volume $1.8 – $2.1 billion $1.7 – $2.1 billion Disposition volume $350 – $450 million $350 – $550 million General and administrative expenses $104 – $106 million $103 – $106 million Property expenses, excluding reimbursable tenant costs $54 – $57 million $54 – $58 million Tax expense (on an AFFO basis) $40 – $43 million $43 – $47 million • The Company has raised and narrowed its AFFO per diluted share guidance range for the 2026 full year, primarily reflecting a more favorable outlook for potential rent loss, together with lower projected tax expense, partly offset by one- time rent abatements expected mainly in the fourth quarter associated with releasing activity. Note: The Company does not provide guidance on net income. The Company only provides guidance on AFFO and does not provide a reconciliation of this forward-looking non-GAAP guidance to net income due to the inherent difficulty in quantifying certain items necessary to provide such reconciliation as a result of their unknown effect, timing and potential significance. Examples of such items include impairments of assets, gains and losses from sales of assets, and depreciation and amortization from new acquisitions. REAL ESTATE Investments • Year to date, the Company completed investments totaling $1.6 billion, including $181.9 million during the 2026 third quarter and $143.2 million subsequent to quarter end. • The Company currently has three capital investments and commitments totaling $95.2 million scheduled to be completed during the 2026 fourth quarter. In addition, the Company has seven capital investments and commitments totaling $204.8 million scheduled to be completed over the course of 2027 and one capital investment and commitment of $25.2 million scheduled to be completed in 2028. Dispositions • During the first nine months of 2026, the Company disposed of 33 properties for gross proceeds totaling $273.2 million, including five properties during the 2026 third quarter for gross proceeds totaling $27.0 million. Contractual Same-Store Rent Growth • As of September 30, 2026, contractual same-store rent growth was 2.6% year over year on a constant currency basis. Composition • As of September 30, 2026, the Company’s net lease portfolio consisted of 1,755 properties, comprising 189 million square feetleased to 383 tenants, with a weighted-average lease term of 12.0 years and an occupancy rate of 98.6%. W. P. Carey Inc. 9/30/2026 Earnings Release 8-K – 3
Page 4
BALANCE SHEET AND CAPITALIZATION Liquidity • As of September 30, 2026, the Company had total liquidity of $2.6 billion, primarily comprising $1.9 billion of available capacity under its Senior Unsecured Credit Facility (net of amounts reserved for standby letters of credit), in addition to cash and cash equivalents and available net proceeds under unsettled forward equity sale agreements. Forward Equity • During the 2026 third quarter, the Company settled a portion of its outstanding forward sale agreements, issuing 2,301,613 shares of common stock for net proceeds totaling approximately $150 million. • As of September 30, 2026, the Company had a total of 7,612,418 shares available for settlement under forward sale agreements, representing anticipated net proceeds totaling approximately $538 million. Senior Unsecured Notes • As previously announced, on July 2, 2026, the Company completed an underwritten public offering of $350 million aggregate principal amount of 5.200% Senior Notes due September 15, 2036. • The Company used the offering proceeds on July 29, 2026 to prepay the $350 million of 4.250% Senior Unsecured Notes due October 2026, with no associated prepayment costs. * * * * * Supplemental Information The Company has provided supplemental unaudited financial and operating information regarding the 2026 third quarter and certain prior quarters, including a description of non-GAAP financial measures and reconciliations to GAAP measures, in a Current Report on Form 8-K filed with the Securities and Exchange Commission (SEC) on October 27, 2026, and made available on the Company’s website at ir.wpcarey.com/investor-relations. * * * * * Live Conference Call and Audio Webcast Scheduled for Wednesday, October 28, 2026 at 11:00 a.m. Eastern Time Please dial in at least 10 minutes prior to the start time. Date/Time: Wednesday, October 28, 2026 at 11:00 a.m. Eastern Time Call-in Number: 1 (877) 465-1289 (U.S.) or +1 (201) 689-8762 (international) Live Audio Webcast and Replay: www.wpcarey.com/earnings * * * * * W. P. Carey Inc. 9/30/2026 Earnings Release 8-K – 4
Page 5
W. P. Carey Inc. W. P. Carey ranks among the largest net lease REITs with a well-diversified portfolio of high-quality, operationally critical commercial real estate, which includes 1,755 net lease properties covering approximately 189 million square feet as of September 30, 2026. With offices in New York, Dallas, London, Amsterdam and Krakow, the company remains focused on investing primarily in single-tenant industrial, warehouse and retail properties located in the U.S. and Europe, under long-term net leases with built-in rent escalations. www.wpcarey.com * * * * * Cautionary Statement Concerning Forward-Looking Statements Certain of the matters discussed in this communication constitute forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, both as amended by the Private Securities Litigation Reform Act of 1995. The forward-looking statements include, among other things, statements regarding the intent, belief or expectations of W. P. Carey and can be identified by the use of words such as “may,” “will,” “should,” “would,” “will be,” “goals,” “believe,” “project,” “expect,” “anticipate,” “intend,” “estimate,” “opportunities,” “possibility,” “strategy,” “maintain” or the negative version of these words and other comparable terms. These forward-looking statements include, but are not limited to, statements made by Mr. Jason Fox regarding expectations for 2026 AFFO per share growth, full-year investment volume and future total returns. These statements are based on the current expectations of our management, and it is important to note that our actual results could be materially different from those projected in such forward-looking statements. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Other unknown or unpredictable risks or uncertainties, like the risks related to fluctuating interest rates, the impact of inflation and tariffs on our tenants and us, the effects of pandemics and global outbreaks of contagious diseases, and domestic or geopolitical crises (such as terrorism, military conflict, war or the perception that hostilities may be imminent), political instability or civil unrest, or other conflict, and those additional risk factors discussed in reports that we have filed with the SEC, could also have material adverse effects on our future results, performance or achievements. Discussions of some of these other important factors and assumptions are contained in W. P. Carey’s filings with the SEC and are available at the SEC’s website at http://www.sec.gov, including Part I, Item 1A. Risk Factors in W. P. Carey’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this communication, unless noted otherwise. Except as required under the federal securities laws and the rules and regulations of the SEC, W. P. Carey does not undertake any obligation to release publicly any revisions to the forward-looking statements to reflect events or circumstances after the date of this communication or to reflect the occurrence of unanticipated events. Institutional Investors: Peter Sands 1 (212) 492-1110 institutionalir@wpcarey.com Individual Investors: W. P. Carey Inc. 1 (212) 492-8920 ir@wpcarey.com Press Contact: Anna McGrath 1 (212) 492-1166 amcgrath@wpcarey.com * * * * * W. P. Carey Inc. 9/30/2026 Earnings Release 8-K – 5
Page 6
W. P. CAREY INC. Consolidated Balance Sheets (Unaudited) (in thousands, except share and per share amounts) September 30, 2026 December 31, 2025 Assets Investments in real estate: Land, buildings and improvements — net lease and other $ 15,356,587 $ 14,451,306 Land, buildings and improvements — operating properties 182,180 286,079 Net investments in finance leases and loans receivable 1,176,873 1,171,886 In-place lease intangible assets and other 2,607,076 2,466,199 Above-market rent intangible assets 652,631 668,707 Investments in real estate 19,975,347 19,044,177 Accumulated depreciation and amortization (3,772,799) (3,578,330) Assets held for sale, net 8,173 3,327 Net investments in real estate 16,210,721 15,469,174 Equity method investments 279,024 310,178 Cash and cash equivalents 143,390 155,329 Other assets, net 1,048,175 1,068,480 Goodwill 982,118 987,071 Total assets $ 18,663,428 $ 17,990,232 Liabilities and Equity Debt: Senior unsecured notes, net $ 7,357,845 $ 6,950,261 Unsecured term loans, net 1,165,910 1,196,366 Unsecured revolving credit facility 67,388 435,417 Non-recourse mortgages, net 192,374 140,646 Debt, net 8,783,517 8,722,690 Accounts payable, accrued expenses and other liabilities 622,084 670,038 Below-market rent and other intangible liabilities, net 94,182 104,055 Deferred income taxes 158,816 151,820 Dividends payable 223,889 207,487 Total liabilities 9,882,488 9,856,090 Preferred stock, $0.001 par value, 50,000,000 shares authorized; none issued — — Common stock, $0.001 par value, 450,000,000 shares authorized; 230,118,492 and 219,145,876 shares,respectively, issued and outstanding 230 219 Additional paid-in capital 12,578,438 11,830,737 Distributions in excess of accumulated earnings (3,684,960) (3,539,592) Deferred compensation obligation 100,948 80,239 Accumulated other comprehensive loss (230,077) (253,346) Total stockholders’ equity 8,764,579 8,118,257 Noncontrolling interests 16,361 15,885 Total equity 8,780,940 8,134,142 Total liabilities and equity $ 18,663,428 $ 17,990,232 ________ (a) Includes $2.2 billion and $2.1 billion of accumulated depreciation on buildings and improvements as of September 30, 2026 and December 31, 2025, respectively, and $1.5 billion of accumulated amortization on lease intangibles as of both September 30, 2026 and December 31, 2025. (a) W. P. Carey Inc. 9/30/2026 Earnings Release 8-K – 6
Page 7
W. P. CAREY INC. Quarterly Consolidated Statements of Income (Unaudited) (in thousands, except share and per share amounts) Three Months Ended September 30, 2026 June 30, 2026 September 30, 2025 Revenues Real Estate: Lease revenues $ 422,499 $ 409,661 $ 372,087 Income from finance leases and loans receivable 26,954 27,162 26,498 Operating property revenues 12,247 11,638 26,771 Other lease-related income 5,726 11,209 3,660 467,426 459,670 429,016 Investment Management: Other advisory income and reimbursements 500 1,000 1,069 Asset management revenue 375 394 1,218 875 1,394 2,287 468,301 461,064 431,303 Operating Expenses Depreciation and amortization 129,137 134,378 125,586 General and administrative 25,317 25,934 23,656 Reimbursable tenant costs 17,665 19,472 14,562 Property expenses, excluding reimbursable tenant costs 12,002 15,206 14,637 Stock-based compensation expense 9,968 13,909 11,153 Operating property expenses 9,216 8,603 15,049 Impairment charges — real estate 6,127 79,421 19,474 Merger and other expenses 540 613 1,021 209,972 297,536 225,138 Other Income and Expenses Interest expense (80,388) (78,979) (75,226) Other gains and (losses) (41,566) 48,558 (31,011) Gain on sale of real estate, net 6,960 5,819 44,401 Non-operating income 4,724 4,245 3,030 Earnings from equity method investments 3,587 55,579 2,361 (106,683) 35,222 (56,445) Income before income taxes 151,646 198,750 149,720 Provision for income taxes (10,516) (13,091) (8,495) Net Income 141,130 185,659 141,225 Net income attributable to noncontrolling interests (180) (270) (229) Net Income Attributable to W. P. Carey $ 140,950 $ 185,389 $ 140,996 Basic Earnings Per Share $ 0.61 $ 0.82 $ 0.64 Diluted Earnings Per Share $ 0.61 $ 0.82 $ 0.64 Weighted-Average Shares Outstanding Basic 230,835,841 225,971,719 220,562,909 Diluted 231,701,927 227,215,203 221,087,833 Dividends Declared Per Share $ 0.950 $ 0.940 $ 0.910 __________ (a) Amount for the three months ended September 30, 2026 primarily comprises a mark-to-market unrealized loss for our investment in shares of Lineage of $35.8 million, a non- cash allowance for credit losses of $7.5 million and net gains on foreign currency exchange rate movements of $2.4 million. (b) Amount for the three months ended September 30, 2026 comprises a dividend of $2.8 million from our investment in shares of Lineage, interest income on deposits of $1.2 million and realized gains on foreign currency exchange derivatives of $0.7 million. (a) (b) W. P. Carey Inc. 9/30/2026 Earnings Release 8-K – 7
Page 8
W. P. CAREY INC. Year-to-Date Consolidated Statements of Income (Unaudited) (in thousands, except share and per share amounts) Nine Months Ended September 30, 2026 2025 Revenues Real Estate: Lease revenues $ 1,234,991 $ 1,090,050 Income from finance leases and loans receivable 81,802 64,232 Operating property revenues 35,935 94,152 Other lease-related income 27,387 16,424 1,380,115 1,264,858 Investment Management: Other advisory income and reimbursements 2,500 3,208 Asset management and other revenue 1,259 3,872 3,759 7,080 1,383,874 1,271,938 Operating Expenses Depreciation and amortization 399,698 375,788 Impairment charges — real estate 125,556 30,677 General and administrative 78,599 74,773 Reimbursable tenant costs 56,829 49,372 Property expenses, excluding reimbursable tenant costs 41,760 39,966 Stock-based compensation expense 31,318 31,244 Operating property expenses 26,513 48,314 Merger and other expenses 2,333 1,769 762,606 651,903 Other Income and Expenses Interest expense (237,827) (215,825) Gain on sale of real estate, net 66,920 141,002 Earnings from equity method investments 63,709 13,900 Other gains and (losses) 13,783 (221,976) Non-operating income 13,673 14,435 (79,742) (268,464) Income before income taxes 541,526 351,571 Provision for income taxes (38,241) (33,218) Net Income 503,285 318,353 Net income attributable to noncontrolling interests (644) (313) Net Income Attributable to W. P. Carey $ 502,641 $ 318,040 Basic Earnings Per Share $ 2.23 $ 1.44 Diluted Earnings Per Share $ 2.21 $ 1.44 Weighted-Average Shares Outstanding Basic 225,846,771 220,511,825 Diluted 227,059,734 221,033,628 Dividends Declared Per Share $ 2.820 $ 2.700 W. P. Carey Inc. 9/30/2026 Earnings Release 8-K – 8
Page 9
W. P. CAREY INC. Quarterly Reconciliation of Net Income to Adjusted Funds from Operations (AFFO) (Unaudited) (in thousands, except share and per share amounts) Three Months Ended September 30, 2026 June 30, 2026 September 30, 2025 Net income attributable to W. P. Carey $ 140,950 $ 185,389 $ 140,996 Adjustments: Depreciation and amortization of real property 128,394 133,663 124,906 Gain on sale of real estate, net (6,960) (5,819) (44,401) Impairment charges — real estate 6,127 79,421 19,474 Proportionate share of adjustments to earnings from equity methodinvestments 644 (50,133) 2,271 Proportionate share of adjustments for noncontrolling interests (23) (26) (82) Total adjustments 128,182 157,106 102,168 FFO (as defined by NAREIT) Attributable to W. P. Carey 269,132 342,495 243,164 Adjustments: Other (gains) and losses 41,566 (48,558) 31,011 Straight-line and other leasing and financing adjustments (23,239) (15,459) (20,424) Stock-based compensation 9,968 13,909 11,153 Amortization of deferred financing costs 5,317 5,292 4,874 Above- and below-market rent intangible lease amortization, net 3,738 3,706 4,363 Tax expense (benefit) – deferred and other 606 2,617 (1,215) Other amortization and non-cash items 573 548 587 Merger and other expenses 540 613 1,021 Proportionate share of adjustments to earnings from equity methodinvestments 39 303 2,194 Proportionate share of adjustments for noncontrolling interests (5) (22) (99) Total adjustments 39,103 (37,051) 33,465 AFFO Attributable to W. P. Carey $ 308,235 $ 305,444 $ 276,629 Summary FFO (as defined by NAREIT) attributable to W. P. Carey $ 269,132 $ 342,495 $ 243,164 FFO (as defined by NAREIT) attributable to W. P. Carey per diluted share $ 1.16 $ 1.51 $ 1.10 AFFO attributable to W. P. Carey $ 308,235 $ 305,444 $ 276,629 AFFO attributable to W. P. Carey per diluted share $ 1.33 $ 1.34 $ 1.25 Diluted weighted-average shares outstanding 231,701,927 227,215,203 221,087,833 (a) (b) (c) (d) (a) (b) (c) (c) (c) (c) (c) W. P. Carey Inc. 9/30/2026 Earnings Release 8-K – 9
Page 10
W. P. CAREY INC. Year-to-Date Reconciliation of Net Income to Adjusted Funds from Operations (AFFO) (Unaudited) (in thousands, except share and per share amounts) Nine Months Ended September 30, 2026 2025 Net income attributable to W. P. Carey $ 502,641 $ 318,040 Adjustments: Depreciation and amortization of real property 397,537 373,773 Impairment charges — real estate 125,556 30,677 Gain on sale of real estate, net (66,920) (141,002) Proportionate share of adjustments to earnings from equity method investments (47,226) 6,145 Proportionate share of adjustments for noncontrolling interests (74) (242) Total adjustments 408,873 269,351 FFO (as defined by NAREIT) Attributable to W. P. Carey 911,514 587,391 Adjustments: Straight-line and other leasing and financing adjustments (62,876) (54,831) Stock-based compensation 31,318 31,244 Amortization of deferred financing costs 15,748 14,284 Other (gains) and losses (13,783) 221,976 Above- and below-market rent intangible lease amortization, net 9,942 10,547 Tax expense – deferred and other 5,950 823 Merger and other expenses 2,333 1,769 Other amortization and non-cash items 1,714 1,726 Proportionate share of adjustments to earnings from equity method investments 555 2,417 Proportionate share of adjustments for noncontrolling interests (79) (227) Total adjustments (9,178) 229,728 AFFO Attributable to W. P. Carey $ 902,336 $ 817,119 Summary FFO (as defined by NAREIT) attributable to W. P. Carey $ 911,514 $ 587,391 FFO (as defined by NAREIT) attributable to W. P. Carey per diluted share $ 4.01 $ 2.66 AFFO attributable to W. P. Carey $ 902,336 $ 817,119 AFFO attributable to W. P. Carey per diluted share $ 3.97 $ 3.70 Diluted weighted-average shares outstanding 227,059,734 221,033,628 __________ (a) Equity income, including amounts that are not typically recognized for FFO and AFFO, is recognized within Earnings from equity method investments on the consolidated statements of income. This represents adjustments to equity income to reflect FFO and AFFO on a pro rata basis. (b) Adjustments disclosed elsewhere in this reconciliation are on a consolidated basis. This adjustment reflects our FFO or AFFO on a pro rata basis. (c) FFO and AFFO are non-GAAP measures. See below for a description of FFO and AFFO. (d) Amount for the three months ended September 30, 2026 primarily comprises a mark-to-market unrealized loss for our investment in shares of Lineage of $35.8 million, a non- cash allowance for credit losses of $7.5 million and net gains on foreign currency exchange rate movements of $2.4 million. (a) (b) (c) (a) (b) (c) (c) (c) (c) (c) W. P. Carey Inc. 9/30/2026 Earnings Release 8-K – 10
Page 11
Non-GAAP Financial Disclosure Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO) Due to certain unique operating characteristics of real estate companies, as discussed below, the National Association of Real Estate Investment Trusts (NAREIT), an industry trade group, has promulgated a non-GAAP measure known as FFO, which we believe to be an appropriate supplemental measure, when used in addition to and in conjunction with results presented in accordance with GAAP, to reflect the operating performance of a REIT. The use of FFO is recommended by the REIT industry as a supplemental non-GAAP measure. FFO is not equivalent to, nor a substitute for, net income or loss as determined under GAAP. We define FFO, a non-GAAP measure, consistent with the standards established by the White Paper on FFO approved by the Board of Governors of NAREIT, as restated in December 2018. The White Paper defines FFO as net income or loss computed in accordance with GAAP, excluding gains or losses from the sale of certain real estate, impairment charges on real estate or other assets incidental to the company’s main business, gains or losses on changes in control of interests in real estate and depreciation and amortization from real estate assets; and after adjustments for unconsolidated partnerships and jointly owned investments. Adjustments for unconsolidated partnerships and jointly owned investments are calculated to reflect FFO on the same basis. We also modify the NAREIT computation of FFO to adjust GAAP net income for certain non-cash charges, such as amortization of real estate-related intangibles, deferred income tax benefits and expenses, straight-line rent and related reserves, other non-cash rent adjustments, non-cash allowance for credit losses on loans receivable and finance leases, stock-based compensation, non-cash environmental accretion expense, amortization of discounts and premiums on debt and amortization of deferred financing costs. Our assessment of our operations is focused on long-term sustainability and not on such non-cash items, which may cause short-term fluctuations in net income but have no impact on cash flows. Additionally, we exclude non-core income and expenses, such as gains or losses from extinguishment of debt, gains or losses on the mark-to-market fair value of equity securities, merger and acquisition expenses, spin-off expenses, and income and expenses associated with our captive insurance company. We also exclude realized and unrealized gains/losses on foreign currency exchange rate movements (other than those realized on the settlement of foreign currency derivatives), which are not considered fundamental attributes of our business plan and do not affect our overall long-term operating performance. We refer to our modified definition of FFO as AFFO. We exclude these items from GAAP net income to arrive at AFFO because they are not the primary drivers in our decision-making process and excluding these items provides investors with a view of our portfolio performance over time and makes it more comparable to other REITs. AFFO also reflects adjustments for unconsolidated partnerships and jointly owned investments. We use AFFO as one measure of our operating performance when we formulate corporate goals, evaluate the effectiveness of our strategies and determine executive compensation. We believe that AFFO is a useful supplemental measure for investors to consider because we believe it will help them better assess the sustainability of our operating performance without the potentially distorting impact of these short-term fluctuations. However, there are limits on the usefulness of AFFO to investors. For example, impairment charges and unrealized foreign currency exchange rate losses that we exclude may become actual realized losses upon the ultimate disposition of the properties in the form of lower cash proceeds or other considerations. We use our FFO and AFFO measures as supplemental financial measures of operating performance. We do not use our FFO and AFFO measures as, nor should they be considered to be, alternatives to net income computed under GAAP, alternatives to net cash provided by operating activities computed under GAAP, or indicators of our ability to fund our cash needs. W. P. Carey Inc. 9/30/2026 Earnings Release 8-K – 11