10-Q 1 wpc-20220331.htm 10-Q wpc-20220331
0001025378false2022Q1--12-3100010253782022-01-012022-03-3100010253782022-04-22xbrli:shares00010253782022-03-31iso4217:USD00010253782021-12-31iso4217:USDxbrli:shares0001025378wpc:OwnedRealEstateSegmentMember2022-01-012022-03-310001025378wpc:OwnedRealEstateSegmentMember2021-01-012021-03-3100010253782021-01-012021-03-310001025378us-gaap:ManagementServiceMemberwpc:InvestmentManagementSegmentMember2022-01-012022-03-310001025378us-gaap:ManagementServiceMemberwpc:InvestmentManagementSegmentMember2021-01-012021-03-310001025378wpc:RevenueFromReimbursementsMemberwpc:InvestmentManagementSegmentMember2022-01-012022-03-310001025378wpc:RevenueFromReimbursementsMemberwpc:InvestmentManagementSegmentMember2021-01-012021-03-310001025378wpc:InvestmentManagementSegmentMember2022-01-012022-03-310001025378wpc:InvestmentManagementSegmentMember2021-01-012021-03-310001025378us-gaap:CommonStockMember2021-12-310001025378us-gaap:AdditionalPaidInCapitalMember2021-12-310001025378us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2021-12-310001025378wpc:DeferredCompensationObligationMember2021-12-310001025378us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001025378us-gaap:ParentMember2021-12-310001025378us-gaap:NoncontrollingInterestMember2021-12-310001025378us-gaap:CommonStockMember2022-01-012022-03-310001025378us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001025378us-gaap:ParentMember2022-01-012022-03-310001025378wpc:DeferredCompensationObligationMember2022-01-012022-03-310001025378us-gaap:NoncontrollingInterestMember2022-01-012022-03-310001025378us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2022-01-012022-03-310001025378us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001025378us-gaap:CommonStockMember2022-03-310001025378us-gaap:AdditionalPaidInCapitalMember2022-03-310001025378us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2022-03-310001025378wpc:DeferredCompensationObligationMember2022-03-310001025378us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001025378us-gaap:ParentMember2022-03-310001025378us-gaap:NoncontrollingInterestMember2022-03-310001025378us-gaap:CommonStockMember2020-12-310001025378us-gaap:AdditionalPaidInCapitalMember2020-12-310001025378us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2020-12-310001025378wpc:DeferredCompensationObligationMember2020-12-310001025378us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001025378us-gaap:ParentMember2020-12-310001025378us-gaap:NoncontrollingInterestMember2020-12-3100010253782020-12-310001025378us-gaap:CommonStockMember2021-01-012021-03-310001025378us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001025378us-gaap:ParentMember2021-01-012021-03-310001025378wpc:DeferredCompensationObligationMember2021-01-012021-03-310001025378us-gaap:NoncontrollingInterestMember2021-01-012021-03-310001025378us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2021-01-012021-03-310001025378us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001025378us-gaap:CommonStockMember2021-03-310001025378us-gaap:AdditionalPaidInCapitalMember2021-03-310001025378us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2021-03-310001025378wpc:DeferredCompensationObligationMember2021-03-310001025378us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001025378us-gaap:ParentMember2021-03-310001025378us-gaap:NoncontrollingInterestMember2021-03-3100010253782021-03-310001025378wpc:CPA18Memberus-gaap:CommonStockMember2022-02-270001025378wpc:CPA18Member2022-02-270001025378wpc:OwnedRealEstateSegmentMember2022-03-31wpc:propertyutr:sqftwpc:tenantxbrli:pure0001025378wpc:OwnedRealEstateSegmentMemberwpc:OperatingPropertiesMember2022-03-310001025378wpc:SelfStorageMemberwpc:OwnedRealEstateSegmentMember2022-03-310001025378srt:HotelMemberwpc:OwnedRealEstateSegmentMember2022-03-310001025378wpc:NetLeasedMemberwpc:InvestmentManagementSegmentMemberwpc:ManagedProgramsMembersrt:AffiliatedEntityMember2022-03-310001025378wpc:InvestmentManagementSegmentMemberwpc:ManagedProgramsMembersrt:AffiliatedEntityMember2022-03-310001025378wpc:InvestmentManagementSegmentMemberwpc:ManagedProgramsMembersrt:AffiliatedEntityMember2022-01-012022-03-310001025378wpc:InvestmentManagementSegmentMemberwpc:ManagedProgramsMembersrt:AffiliatedEntityMemberwpc:OperatingPropertiesMember2022-03-310001025378wpc:InvestmentManagementSegmentMemberwpc:ManagedProgramsMemberwpc:BuilttoSuitMembersrt:AffiliatedEntityMember2022-03-31wpc:variable_interest_entitywpc:vie0001025378us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2022-03-310001025378us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2021-12-310001025378wpc:OwnedRealEstateSegmentMember2022-03-310001025378wpc:OwnedRealEstateSegmentMember2021-12-310001025378wpc:ManagedProgramsMember2021-12-310001025378wpc:ManagedProgramsMember2022-03-310001025378srt:HotelMemberwpc:OwnedRealEstateSegmentMember2022-01-012022-03-310001025378srt:HotelMemberwpc:OwnedRealEstateSegmentMember2021-01-012021-03-310001025378us-gaap:ManagementServiceMembersrt:AffiliatedEntityMember2022-01-012022-03-310001025378us-gaap:ManagementServiceMembersrt:AffiliatedEntityMember2021-01-012021-03-310001025378srt:AffiliatedEntityMember2022-01-012022-03-310001025378srt:AffiliatedEntityMember2021-01-012021-03-310001025378wpc:RevenueFromReimbursementsMembersrt:AffiliatedEntityMember2022-01-012022-03-310001025378wpc:RevenueFromReimbursementsMembersrt:AffiliatedEntityMember2021-01-012021-03-310001025378wpc:CorporatePropertyAssociatesEighteenMembersrt:AffiliatedEntityMember2022-01-012022-03-310001025378wpc:CorporatePropertyAssociatesEighteenMembersrt:AffiliatedEntityMember2021-01-012021-03-310001025378wpc:CareyEuropeanStudentHousingFundIL.P.Membersrt:AffiliatedEntityMember2022-01-012022-03-310001025378wpc:CareyEuropeanStudentHousingFundIL.P.Membersrt:AffiliatedEntityMember2021-01-012021-03-310001025378wpc:WatermarkLodgingTrustMembersrt:AffiliatedEntityMember2022-01-012022-03-310001025378wpc:WatermarkLodgingTrustMembersrt:AffiliatedEntityMember2021-01-012021-03-310001025378us-gaap:CommonClassAMemberwpc:CorporatePropertyAssociatesEighteenMembersrt:MinimumMemberwpc:AverageEquityValueMembersrt:AffiliatedEntityMember2022-01-012022-03-310001025378us-gaap:CommonClassAMembersrt:MaximumMemberwpc:CorporatePropertyAssociatesEighteenMemberwpc:AverageEquityValueMembersrt:AffiliatedEntityMember2022-01-012022-03-310001025378wpc:GrossAssetsFairValueMemberwpc:CareyEuropeanStudentHousingFundIL.P.Membersrt:AffiliatedEntityMember2022-01-012022-03-310001025378wpc:CorporatePropertyAssociatesEighteenMemberwpc:AggregateCostOfInvestmentMembersrt:AffiliatedEntityMember2022-01-012022-03-310001025378wpc:CareyEuropeanStudentHousingFundIL.P.Memberwpc:AggregateCostOfInvestmentMembersrt:AffiliatedEntityMember2022-01-012022-03-310001025378srt:MaximumMemberwpc:CorporatePropertyAssociatesEighteenMembersrt:AffiliatedEntityMember2022-03-310001025378srt:MaximumMemberwpc:CorporatePropertyAssociatesEighteenMembersrt:AffiliatedEntityMember2021-12-310001025378srt:AffiliatedEntityMemberwpc:CorporatePropertyAssociatesEighteenMember2022-03-310001025378srt:AffiliatedEntityMemberwpc:CorporatePropertyAssociatesEighteenMember2021-12-310001025378srt:AffiliatedEntityMemberus-gaap:SubsequentEventMemberwpc:CorporatePropertyAssociatesEighteenMember2022-04-012022-04-29wpc:investment0001025378wpc:OperatingRealEstateBusinessMemberus-gaap:LandMember2022-03-310001025378wpc:OperatingRealEstateBusinessMemberus-gaap:LandMember2021-12-310001025378wpc:OperatingRealEstateBusinessMemberus-gaap:BuildingAndBuildingImprovementsMember2022-03-310001025378wpc:OperatingRealEstateBusinessMemberus-gaap:BuildingAndBuildingImprovementsMember2021-12-310001025378wpc:OperatingRealEstateBusinessMemberus-gaap:AssetUnderConstructionMember2022-03-310001025378wpc:OperatingRealEstateBusinessMemberus-gaap:AssetUnderConstructionMember2021-12-310001025378wpc:OperatingRealEstateBusinessMember2022-03-310001025378wpc:OperatingRealEstateBusinessMember2021-12-310001025378currency:EUR2022-01-012022-03-310001025378currency:EUR2022-03-31iso4217:USDiso4217:EUR0001025378currency:EUR2021-12-310001025378wpc:RealEstateSubjectToOperatingLeaseMember2022-01-012022-03-310001025378us-gaap:ScenarioAdjustmentMemberwpc:DirectFinancingLeaseMember2022-03-310001025378us-gaap:ScenarioAdjustmentMember2022-03-310001025378wpc:RealEstateSubjectToOperatingLeaseMember2021-01-012021-03-310001025378wpc:RealEstateSubjectToOperatingLeaseMemberwpc:IndustrialInPleasantPrairieWisconsinMember2022-01-100001025378wpc:RealEstateSubjectToOperatingLeaseMemberwpc:IndustrialInPleasantPrairieWisconsinMember2022-01-102022-01-200001025378wpc:RealEstateSubjectToOperatingLeaseMemberwpc:FuneralHomeVariousSpainMember2022-02-030001025378wpc:RealEstateSubjectToOperatingLeaseMemberwpc:FuneralHomeVariousSpainMember2022-02-032022-02-030001025378wpc:RealEstateSubjectToOperatingLeaseMemberwpc:RetailInVariousDenmarkMember2022-02-110001025378wpc:RealEstateSubjectToOperatingLeaseMemberwpc:RetailInVariousDenmarkMember2022-02-112022-02-110001025378wpc:IndustrialInLavalCanadaMemberwpc:RealEstateSubjectToOperatingLeaseMember2022-02-180001025378wpc:IndustrialInLavalCanadaMemberwpc:RealEstateSubjectToOperatingLeaseMember2022-02-182022-02-180001025378wpc:RealEstateSubjectToOperatingLeaseMemberwpc:WarehouseInChattanoogaTennesseeMember2022-03-040001025378wpc:RealEstateSubjectToOperatingLeaseMemberwpc:WarehouseInChattanoogaTennesseeMember2022-03-042022-03-040001025378wpc:RealEstateSubjectToOperatingLeaseMember2022-03-310001025378wpc:RealEstateSubjectToOperatingLeaseMemberwpc:AdditionalRetailInVariousDenmarkMember2022-03-310001025378wpc:RealEstateSubjectToOperatingLeaseMemberwpc:AdditionalRetailInVariousDenmarkMember2022-01-012022-03-310001025378wpc:RealEstateSubjectToOperatingLeaseMemberwpc:WarehouseInChattanoogaTennesseeMember2022-03-310001025378wpc:RealEstateSubjectToOperatingLeaseMemberus-gaap:LandMember2022-01-012022-03-310001025378wpc:RealEstateSubjectToOperatingLeaseMemberus-gaap:BuildingAndBuildingImprovementsMember2022-01-012022-03-310001025378wpc:RealEstateSubjectToOperatingLeaseMemberus-gaap:LeasesAcquiredInPlaceMember2022-01-012022-03-310001025378wpc:BelowMarketLeaseMemberwpc:RealEstateSubjectToOperatingLeaseMember2022-01-012022-03-3100010253782021-01-012021-12-310001025378wpc:OfficeFacilityInMasonOhioMemberus-gaap:ConstructionInProgressMember2022-03-310001025378wpc:OfficeFacilityInMasonOhioMemberus-gaap:ConstructionInProgressMember2022-01-012022-03-310001025378wpc:BredaNetherlandsMemberus-gaap:ConstructionInProgressMember2022-03-310001025378wpc:BredaNetherlandsMemberus-gaap:ConstructionInProgressMember2022-01-012022-03-310001025378us-gaap:ConstructionInProgressMember2022-03-310001025378us-gaap:ConstructionInProgressMember2022-01-012022-03-310001025378us-gaap:LandBuildingsAndImprovementsMemberus-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2022-01-012022-03-310001025378wpc:OperatingRealEstateBusinessMemberwpc:SelfStorageMember2021-12-310001025378wpc:OperatingRealEstateBusinessMemberwpc:SelfStorageMember2022-03-310001025378wpc:OperatingRealEstateBusinessMembersrt:HotelMember2022-03-310001025378wpc:OperatingRealEstateBusinessMembersrt:HotelMember2021-12-310001025378wpc:OperatingRealEstateBusinessMember2022-01-012022-03-310001025378wpc:OperatingRealEstateBusinessMember2021-01-012021-03-310001025378us-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMember2021-12-310001025378us-gaap:FinanceReceivablesMember2022-01-012022-03-310001025378us-gaap:FinanceReceivablesMember2021-01-012021-03-310001025378wpc:DirectFinancingLeaseMember2022-01-012022-03-31wpc:loan0001025378wpc:InternallyAssignedGrade1thru3Member2022-03-310001025378wpc:InternallyAssignedGrade1thru3Member2021-12-310001025378wpc:InternallyAssignedGrade4Member2022-03-310001025378wpc:InternallyAssignedGrade4Member2021-12-310001025378wpc:InternallyAssignedGrade5Member2022-03-310001025378wpc:InternallyAssignedGrade5Member2021-12-310001025378srt:MinimumMember2022-01-012022-03-310001025378srt:MaximumMember2022-01-012022-03-310001025378wpc:OwnedRealEstateSegmentMember2021-12-310001025378wpc:InvestmentManagementSegmentMember2022-03-310001025378us-gaap:SoftwareDevelopmentMember2022-03-310001025378us-gaap:SoftwareDevelopmentMember2021-12-310001025378us-gaap:TrademarksAndTradeNamesMember2022-03-310001025378us-gaap:TrademarksAndTradeNamesMember2021-12-310001025378wpc:ContractsincludinginternalsoftwaredevelopmentMember2022-03-310001025378wpc:ContractsincludinginternalsoftwaredevelopmentMember2021-12-310001025378us-gaap:LeasesAcquiredInPlaceMember2022-03-310001025378us-gaap:LeasesAcquiredInPlaceMember2021-12-310001025378us-gaap:AboveMarketLeasesMember2022-03-310001025378us-gaap:AboveMarketLeasesMember2021-12-310001025378us-gaap:LeaseAgreementsMember2022-03-310001025378us-gaap:LeaseAgreementsMember2021-12-310001025378us-gaap:GoodwillMember2022-03-310001025378us-gaap:GoodwillMember2021-12-310001025378wpc:BelowMarketLeaseMember2022-03-310001025378wpc:BelowMarketLeaseMember2021-12-310001025378wpc:BargainPurchaseOptionMember2022-03-310001025378wpc:BargainPurchaseOptionMember2021-12-310001025378wpc:NetIntangibleAssetsMember2022-01-012022-03-310001025378wpc:CorporatePropertyAssociatesEighteenMembersrt:AffiliatedEntityMember2022-03-310001025378wpc:CorporatePropertyAssociatesEighteenMembersrt:AffiliatedEntityMember2021-12-310001025378wpc:CorporatePropertyAssociatesEighteenOperatingPartnerMembersrt:AffiliatedEntityMember2022-03-310001025378wpc:CorporatePropertyAssociatesEighteenOperatingPartnerMembersrt:AffiliatedEntityMember2021-12-310001025378wpc:CareyEuropeanStudentHousingFundIL.P.Membersrt:AffiliatedEntityMember2022-03-310001025378wpc:CareyEuropeanStudentHousingFundIL.P.Membersrt:AffiliatedEntityMember2021-12-310001025378wpc:ManagedProgramsMembersrt:AffiliatedEntityMember2022-03-310001025378wpc:ManagedProgramsMembersrt:AffiliatedEntityMember2021-12-310001025378wpc:CorporatePropertyAssociatesEighteenMembersrt:AffiliatedEntityMember2022-01-012022-03-310001025378wpc:CorporatePropertyAssociatesEighteenMembersrt:AffiliatedEntityMember2021-01-012021-03-310001025378wpc:CorporatePropertyAssociatesEighteenOperatingPartnerMembersrt:AffiliatedEntityMember2022-01-012022-03-310001025378wpc:CorporatePropertyAssociatesEighteenOperatingPartnerMembersrt:AffiliatedEntityMember2021-01-012021-03-310001025378wpc:CareyEuropeanStudentHousingFundIL.P.Membersrt:AffiliatedEntityMember2022-01-012022-03-310001025378wpc:CareyEuropeanStudentHousingFundIL.P.Membersrt:AffiliatedEntityMember2021-01-012021-03-310001025378srt:AffiliatedEntityMemberwpc:OwnedRealEstateSegmentMemberwpc:RetailComplexInLasVegasNevadaMemberwpc:ThirdPartyMember2022-03-310001025378srt:AffiliatedEntityMemberwpc:OwnedRealEstateSegmentMemberwpc:RetailComplexInLasVegasNevadaMemberwpc:ThirdPartyMember2021-12-310001025378srt:AffiliatedEntityMemberwpc:OwnedRealEstateSegmentMemberwpc:JohnsonSelfStorageMemberwpc:ThirdPartyMember2022-03-310001025378srt:AffiliatedEntityMemberwpc:OwnedRealEstateSegmentMemberwpc:JohnsonSelfStorageMemberwpc:ThirdPartyMember2021-12-310001025378srt:AffiliatedEntityMemberwpc:KeskoSenukaiMemberwpc:OwnedRealEstateSegmentMemberwpc:ThirdPartyMember2022-03-310001025378srt:AffiliatedEntityMemberwpc:KeskoSenukaiMemberwpc:OwnedRealEstateSegmentMemberwpc:ThirdPartyMember2021-12-310001025378srt:AffiliatedEntityMemberwpc:OwnedRealEstateSegmentMemberwpc:HarmonRetailCornerMemberwpc:ThirdPartyMember2022-03-310001025378srt:AffiliatedEntityMemberwpc:OwnedRealEstateSegmentMemberwpc:HarmonRetailCornerMemberwpc:ThirdPartyMember2021-12-310001025378srt:AffiliatedEntityMemberwpc:OwnedRealEstateSegmentMemberwpc:StateFarmMemberwpc:CorporatePropertyAssociatesEighteenMember2022-03-310001025378srt:AffiliatedEntityMemberwpc:OwnedRealEstateSegmentMemberwpc:StateFarmMemberwpc:CorporatePropertyAssociatesEighteenMember2021-12-310001025378srt:AffiliatedEntityMemberwpc:OwnedRealEstateSegmentMemberwpc:CorporatePropertyAssociatesEighteenMemberwpc:ApplyASMember2022-03-310001025378srt:AffiliatedEntityMemberwpc:OwnedRealEstateSegmentMemberwpc:CorporatePropertyAssociatesEighteenMemberwpc:ApplyASMember2021-12-310001025378srt:AffiliatedEntityMemberwpc:OwnedRealEstateSegmentMemberwpc:AgorkorFiveMemberwpc:CorporatePropertyAssociatesEighteenMember2022-03-310001025378srt:AffiliatedEntityMemberwpc:OwnedRealEstateSegmentMemberwpc:AgorkorFiveMemberwpc:CorporatePropertyAssociatesEighteenMember2021-12-310001025378wpc:OwnedRealEstateSegmentMemberwpc:WatermarkLodgingTrustMemberwpc:WatermarkLodgingTrustMember2022-03-310001025378wpc:OwnedRealEstateSegmentMemberwpc:WatermarkLodgingTrustMemberwpc:WatermarkLodgingTrustMember2021-12-310001025378wpc:OwnedRealEstateSegmentMemberwpc:BankPekaoMemberwpc:CorporatePropertyAssociatesEighteenMember2022-03-310001025378wpc:OwnedRealEstateSegmentMemberwpc:BankPekaoMemberwpc:CorporatePropertyAssociatesEighteenMember2021-12-310001025378srt:AffiliatedEntityMemberwpc:OwnedRealEstateSegmentMemberwpc:ConstructionCommitmentMemberwpc:RetailComplexInLasVegasNevadaMemberwpc:ThirdPartyMember2021-06-100001025378srt:AffiliatedEntityMemberwpc:OwnedRealEstateSegmentMemberwpc:ConstructionCommitmentMemberwpc:RetailComplexInLasVegasNevadaMemberwpc:ThirdPartyMember2022-01-012022-03-310001025378us-gaap:EquityMethodInvestmentsMember2022-01-012022-03-310001025378srt:AffiliatedEntityMemberwpc:WatermarkLodgingTrustMemberus-gaap:CommonStockMember2020-04-130001025378srt:AffiliatedEntityMemberwpc:OwnedRealEstateSegmentMemberwpc:BankPekaoMemberwpc:CorporatePropertyAssociatesEighteenMember2022-01-012022-03-310001025378wpc:OwnedRealEstateSegmentMemberus-gaap:UnconsolidatedPropertiesMember2022-01-012022-03-310001025378wpc:OwnedRealEstateSegmentMemberus-gaap:UnconsolidatedPropertiesMember2021-01-012021-03-310001025378wpc:OwnedRealEstateSegmentMemberus-gaap:UnconsolidatedPropertiesMember2022-03-310001025378wpc:OwnedRealEstateSegmentMemberus-gaap:UnconsolidatedPropertiesMember2021-12-310001025378wpc:LineageLogisticsMemberus-gaap:FairValueInputsLevel3Member2021-01-012021-03-310001025378wpc:LineageLogisticsMemberus-gaap:FairValueInputsLevel3Member2022-01-012022-03-310001025378wpc:LineageLogisticsMemberus-gaap:FairValueInputsLevel3Member2022-03-310001025378wpc:LineageLogisticsMemberus-gaap:FairValueInputsLevel3Member2021-12-310001025378wpc:GuggenheimCreditIncomeFundMember2022-01-012022-03-310001025378wpc:GuggenheimCreditIncomeFundMember2022-03-310001025378wpc:GuggenheimCreditIncomeFundMember2021-12-310001025378wpc:WatermarkLodgingTrustMember2022-01-310001025378srt:AffiliatedEntityMemberwpc:WatermarkLodgingTrustMember2022-01-012022-01-310001025378srt:AffiliatedEntityMemberwpc:WatermarkLodgingTrustMember2022-01-310001025378srt:AffiliatedEntityMemberwpc:WatermarkLodgingTrustMember2022-01-012022-03-310001025378us-gaap:FairValueInputsLevel3Memberwpc:WatermarkLodgingTrustMember2022-01-012022-03-310001025378us-gaap:FairValueInputsLevel3Memberus-gaap:PreferredStockMemberwpc:WatermarkLodgingTrustMember2021-12-310001025378us-gaap:FairValueInputsLevel3Memberwpc:WatermarkLodgingTrustMember2021-12-310001025378us-gaap:MeasurementInputDiscountRateMemberus-gaap:FairValueInputsLevel3Memberwpc:WatermarkLodgingTrustMember2022-03-310001025378us-gaap:FairValueInputsLevel3Memberus-gaap:PreferredStockMemberwpc:WatermarkLodgingTrustMember2022-03-310001025378us-gaap:FairValueInputsLevel2Memberus-gaap:SeniorNotesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-03-310001025378us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:SeniorNotesMember2022-03-310001025378us-gaap:FairValueInputsLevel2Memberus-gaap:SeniorNotesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-12-310001025378us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:SeniorNotesMember2021-12-310001025378us-gaap:FairValueInputsLevel3Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:SecuredDebtMember2022-03-310001025378us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:SecuredDebtMember2022-03-310001025378us-gaap:FairValueInputsLevel3Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:SecuredDebtMember2021-12-310001025378us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:SecuredDebtMember2021-12-310001025378wpc:LandBuildingAndImprovementsAndIntangiblesMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Member2022-01-012022-03-310001025378wpc:LandBuildingAndImprovementsAndIntangiblesMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Member2021-01-012021-03-310001025378us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:EquityMethodInvestmentsMemberus-gaap:FairValueInputsLevel3Member2022-01-012022-03-310001025378us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:EquityMethodInvestmentsMemberus-gaap:FairValueInputsLevel3Member2021-01-012021-03-310001025378us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Member2022-01-012022-03-310001025378us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Member2021-01-012021-03-310001025378wpc:LandBuildingAndImprovementsAndIntangiblesMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Memberwpc:VacantPropertiesMember2022-01-012022-03-310001025378wpc:LandBuildingAndImprovementsAndIntangiblesMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Memberwpc:MeasurementInputCashflowDiscountRateMemberwpc:VacantPropertiesMember2022-03-310001025378wpc:LandBuildingAndImprovementsAndIntangiblesMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Memberwpc:VacantPropertiesMemberwpc:MeasurementInputTerminalCapitalizationRateMember2022-03-310001025378wpc:LandBuildingAndImprovementsAndIntangiblesMemberwpc:PendragonPLCMember2022-03-310001025378wpc:LandBuildingAndImprovementsAndIntangiblesMemberwpc:PendragonPLCMember2022-03-012022-03-310001025378wpc:LandBuildingAndImprovementsAndIntangiblesMemberwpc:PendragonPLCMemberus-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMember2022-03-310001025378wpc:LandBuildingAndImprovementsAndIntangiblesMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Memberwpc:PendragonPLCMemberus-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMember2022-01-012022-03-310001025378wpc:LandBuildingAndImprovementsAndIntangiblesMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Memberwpc:PendragonPLCMemberus-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMember2022-03-310001025378wpc:LandBuildingAndImprovementsAndIntangiblesMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Memberwpc:PendragonPLCMembersrt:MinimumMemberwpc:MeasurementInputTerminalCapitalizationRateMemberus-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMember2022-03-310001025378wpc:LandBuildingAndImprovementsAndIntangiblesMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Membersrt:MaximumMemberwpc:PendragonPLCMemberwpc:MeasurementInputTerminalCapitalizationRateMemberus-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMember2022-03-310001025378us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:EquityMethodInvestmentsMemberus-gaap:FairValueInputsLevel3Memberwpc:MeasurementInputCashflowDiscountRateMember2022-03-310001025378us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:EquityMethodInvestmentsMemberus-gaap:FairValueInputsLevel3Memberwpc:MeasurementInputResidualDiscountRateMember2022-03-310001025378us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:EquityMethodInvestmentsMemberus-gaap:FairValueInputsLevel3Memberwpc:MeasurementInputResidualCapitalizationRateMember2022-03-310001025378us-gaap:OtherAssetsMemberwpc:ForeignCurrencyCollarsMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-03-310001025378us-gaap:OtherAssetsMemberwpc:ForeignCurrencyCollarsMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-12-310001025378us-gaap:InterestRateSwapMemberus-gaap:OtherAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-03-310001025378us-gaap:OtherAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateCapMember2022-03-310001025378us-gaap:OtherAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateCapMember2021-12-310001025378wpc:ForeignCurrencyCollarsMemberus-gaap:AccountsPayableAndAccruedLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-03-310001025378wpc:ForeignCurrencyCollarsMemberus-gaap:AccountsPayableAndAccruedLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-12-310001025378us-gaap:InterestRateSwapMemberus-gaap:AccountsPayableAndAccruedLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-03-310001025378us-gaap:InterestRateSwapMemberus-gaap:AccountsPayableAndAccruedLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-12-310001025378us-gaap:DesignatedAsHedgingInstrumentMember2022-03-310001025378us-gaap:DesignatedAsHedgingInstrumentMember2021-12-310001025378us-gaap:WarrantMemberus-gaap:OtherAssetsMemberus-gaap:NondesignatedMember2022-03-310001025378us-gaap:WarrantMemberus-gaap:OtherAssetsMemberus-gaap:NondesignatedMember2021-12-310001025378us-gaap:OtherAssetsMemberwpc:ForeignCurrencyCollarsMemberus-gaap:NondesignatedMember2022-03-310001025378us-gaap:NondesignatedMember2022-03-310001025378us-gaap:NondesignatedMember2021-12-310001025378us-gaap:CashFlowHedgingMemberwpc:ForeignCurrencyCollarsMember2022-01-012022-03-310001025378us-gaap:CashFlowHedgingMemberwpc:ForeignCurrencyCollarsMember2021-01-012021-03-310001025378us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2022-01-012022-03-310001025378us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2021-01-012021-03-310001025378us-gaap:CashFlowHedgingMemberus-gaap:InterestRateCapMember2022-01-012022-03-310001025378us-gaap:CashFlowHedgingMemberus-gaap:InterestRateCapMember2021-01-012021-03-310001025378us-gaap:CashFlowHedgingMemberwpc:NonOperatingIncomeMemberwpc:ForeignCurrencyCollarsMember2022-01-012022-03-310001025378us-gaap:CashFlowHedgingMemberwpc:NonOperatingIncomeMemberwpc:ForeignCurrencyCollarsMember2021-01-012021-03-310001025378us-gaap:CashFlowHedgingMemberus-gaap:InterestExpenseMemberwpc:InterestRateSwapandCapsMember2022-01-012022-03-310001025378us-gaap:CashFlowHedgingMemberus-gaap:InterestExpenseMemberwpc:InterestRateSwapandCapsMember2021-01-012021-03-310001025378us-gaap:CashFlowHedgingMember2022-01-012022-03-310001025378us-gaap:CashFlowHedgingMember2021-01-012021-03-310001025378us-gaap:CashFlowHedgingMemberus-gaap:EquityMethodInvestmentsMember2022-01-012022-03-310001025378us-gaap:CashFlowHedgingMemberus-gaap:EquityMethodInvestmentsMember2021-01-012021-03-310001025378us-gaap:CashFlowHedgingMemberus-gaap:InterestExpenseMemberus-gaap:InterestRateSwapMember2021-01-012021-03-310001025378us-gaap:InterestExpenseMember2022-01-012022-03-310001025378us-gaap:OtherIncomeMember2022-01-012022-03-310001025378wpc:NonOperatingIncomeMemberwpc:ForeignCurrencyCollarsMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-01-012022-03-310001025378wpc:NonOperatingIncomeMemberwpc:ForeignCurrencyCollarsMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-01-012021-03-310001025378us-gaap:InterestExpenseMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-01-012022-03-310001025378us-gaap:InterestExpenseMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-01-012021-03-310001025378wpc:ForeignCurrencyCollarsMemberus-gaap:NondesignatedMemberwpc:OtherGainsAndLossesMember2022-01-012022-03-310001025378wpc:ForeignCurrencyCollarsMemberus-gaap:NondesignatedMemberwpc:OtherGainsAndLossesMember2021-01-012021-03-310001025378us-gaap:CashFlowHedgingMemberus-gaap:InterestRateSwapMembercurrency:EURus-gaap:DesignatedAsHedgingInstrumentMember2022-03-31wpc:derivativeiso4217:EUR0001025378us-gaap:CashFlowHedgingMemberus-gaap:InterestRateSwapMembercurrency:USDus-gaap:DesignatedAsHedgingInstrumentMember2022-03-310001025378us-gaap:CashFlowHedgingMembercurrency:EURus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateCapMember2022-03-310001025378us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-03-310001025378us-gaap:CashFlowHedgingMembercurrency:EURwpc:ForeignCurrencyCollarsMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-03-310001025378us-gaap:CashFlowHedgingMembercurrency:GBPwpc:ForeignCurrencyCollarsMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-03-31iso4217:GBP0001025378currency:EURwpc:ForeignCurrencyCollarsMemberus-gaap:NondesignatedMember2022-03-310001025378us-gaap:IndividualMember2022-03-3100010253782020-02-200001025378currency:USDwpc:SeniorUnsecuredCreditFacilityMember2020-02-200001025378currency:GBPwpc:SeniorUnsecuredTermLoanMember2020-02-200001025378currency:EURwpc:SeniorUnsecuredTermLoanMember2020-02-200001025378currency:GBPus-gaap:SubsequentEventMemberwpc:SeniorUnsecuredTermLoanMember2022-04-290001025378currency:EURus-gaap:SubsequentEventMemberwpc:SeniorUnsecuredTermLoanMember2022-04-290001025378us-gaap:SubsequentEventMemberwpc:SeniorUnsecuredCreditFacilityMember2022-04-290001025378wpc:SeniorUnsecuredCreditFacilityMember2022-03-310001025378us-gaap:StandbyLettersOfCreditMember2022-03-310001025378wpc:SeniorUnsecuredCreditFacilityMember2022-01-012022-03-310001025378wpc:EuroInterbankOfferingRateMembercurrency:EURwpc:SeniorUnsecuredCreditFacilityMember2022-01-012022-03-310001025378currency:EURwpc:SeniorUnsecuredCreditFacilityMember2022-03-310001025378currency:EURwpc:SeniorUnsecuredCreditFacilityMember2021-12-310001025378wpc:GreatBritishPoundInterbankOfferingRateMembercurrency:GBPwpc:SeniorUnsecuredCreditFacilityMember2022-01-012022-03-310001025378currency:GBPwpc:SeniorUnsecuredCreditFacilityMember2022-03-310001025378currency:GBPwpc:SeniorUnsecuredCreditFacilityMember2021-12-310001025378currency:JPYwpc:SeniorUnsecuredCreditFacilityMemberwpc:JPYLIBORMember2022-01-012022-03-310001025378currency:JPYwpc:SeniorUnsecuredCreditFacilityMember2022-03-310001025378currency:JPYwpc:SeniorUnsecuredCreditFacilityMember2021-12-310001025378wpc:SeniorUnsecuredCreditFacilityMember2021-12-310001025378wpc:GreatBritishPoundInterbankOfferingRateMembercurrency:GBPwpc:SeniorUnsecuredTermLoanMember2022-01-012022-03-310001025378currency:GBPwpc:SeniorUnsecuredTermLoanMember2022-03-310001025378currency:GBPwpc:SeniorUnsecuredTermLoanMember2021-12-310001025378wpc:EuroInterbankOfferingRateMembercurrency:EURwpc:SeniorUnsecuredTermLoanMember2022-01-012022-03-310001025378currency:EURwpc:SeniorUnsecuredTermLoanMember2022-03-310001025378currency:EURwpc:SeniorUnsecuredTermLoanMember2021-12-310001025378wpc:SeniorUnsecuredTermLoanMember2022-03-310001025378wpc:SeniorUnsecuredTermLoanMember2021-12-310001025378us-gaap:SeniorNotesMember2022-03-310001025378us-gaap:SeniorNotesMemberwpc:EuroSeniorNote2.0Due2023Member2022-03-310001025378us-gaap:SeniorNotesMemberwpc:EuroSeniorNote095Due2030Member2022-01-012022-03-310001025378us-gaap:SeniorNotesMemberwpc:GovernmentBondYieldMembersrt:MinimumMember2022-01-012022-03-310001025378srt:MaximumMemberus-gaap:SeniorNotesMemberwpc:GovernmentBondYieldMember2022-01-012022-03-310001025378us-gaap:SeniorNotesMemberwpc:SeniorNote4.6due2024Member2022-03-310001025378us-gaap:SeniorNotesMemberwpc:SeniorNote4.6due2024Member2021-12-310001025378wpc:EuroSenior2.25Due2024Memberus-gaap:SeniorNotesMember2022-03-310001025378wpc:EuroSenior2.25Due2024Memberus-gaap:SeniorNotesMember2021-12-310001025378wpc:SeniorNote4.0Due2025Memberus-gaap:SeniorNotesMember2022-03-310001025378wpc:SeniorNote4.0Due2025Memberus-gaap:SeniorNotesMember2021-12-310001025378wpc:EuroSeniorNote2.250Due2026Memberus-gaap:SeniorNotesMember2022-03-310001025378wpc:EuroSeniorNote2.250Due2026Memberus-gaap:SeniorNotesMember2021-12-310001025378us-gaap:SeniorNotesMemberwpc:SeniorNote4.25Due2026Member2022-03-310001025378us-gaap:SeniorNotesMemberwpc:SeniorNote4.25Due2026Member2021-12-310001025378us-gaap:SeniorNotesMemberwpc:EuroSeniorNote2.125Due2027Member2022-03-310001025378us-gaap:SeniorNotesMemberwpc:EuroSeniorNote2.125Due2027Member2021-12-310001025378us-gaap:SeniorNotesMemberwpc:SeniorNote1.350Due2028Member2022-03-310001025378us-gaap:SeniorNotesMemberwpc:SeniorNote1.350Due2028Member2021-12-310001025378wpc:SeniorNote3.85Due2029Memberus-gaap:SeniorNotesMember2022-03-310001025378wpc:SeniorNote3.85Due2029Memberus-gaap:SeniorNotesMember2021-12-310001025378us-gaap:SeniorNotesMemberwpc:EuroSeniorNote095Due2030Member2022-03-310001025378us-gaap:SeniorNotesMemberwpc:EuroSeniorNote095Due2030Member2021-12-310001025378wpc:SeniorNote24Due2031Memberus-gaap:SeniorNotesMember2022-03-310001025378wpc:SeniorNote24Due2031Memberus-gaap:SeniorNotesMember2021-12-310001025378us-gaap:SeniorNotesMemberwpc:SeniorNote2450Due2033Member2022-03-310001025378us-gaap:SeniorNotesMemberwpc:SeniorNote2450Due2033Member2021-12-310001025378wpc:SeniorNote2250Due2032Memberus-gaap:SeniorNotesMember2022-03-310001025378wpc:SeniorNote2250Due2032Memberus-gaap:SeniorNotesMember2021-12-310001025378us-gaap:SeniorNotesMember2021-12-310001025378wpc:FixedInterestRateMember2022-03-310001025378wpc:VariableInterestRateMember2022-03-310001025378wpc:NonRecourseDebtMember2022-01-012022-03-310001025378wpc:NonRecourseDebtMember2022-03-310001025378wpc:NonRecourseDebtMember2021-01-012021-03-310001025378wpc:NonRecourseDebtMember2021-03-310001025378wpc:RestrictedStockAndUnitsRsuMember2021-12-310001025378us-gaap:PerformanceSharesMember2021-12-310001025378wpc:RestrictedStockAndUnitsRsuMember2022-01-012022-03-310001025378us-gaap:PerformanceSharesMember2022-01-012022-03-310001025378wpc:RestrictedStockAndUnitsRsuMember2022-03-310001025378us-gaap:PerformanceSharesMember2022-03-310001025378srt:MinimumMemberwpc:LongTermIncentivePlanMember2022-01-012022-03-310001025378wpc:LongTermIncentivePlanMember2022-01-012022-03-310001025378wpc:LongTermIncentivePlanMember2022-03-310001025378wpc:LongTermIncentivePlanMember2021-12-310001025378srt:MinimumMemberus-gaap:PerformanceSharesMember2022-01-012022-03-310001025378srt:MaximumMemberus-gaap:PerformanceSharesMember2022-01-012022-03-310001025378us-gaap:CommonStockMemberwpc:ATMMember2022-01-012022-03-310001025378us-gaap:CommonStockMemberwpc:ATMMember2021-01-012021-03-310001025378wpc:ATMMember2022-03-310001025378us-gaap:PrivatePlacementMemberwpc:June2020EquityForwardsMember2020-06-170001025378us-gaap:PrivatePlacementMemberwpc:June2020EquityForwardsMember2020-06-172020-06-170001025378us-gaap:PrivatePlacementMemberwpc:June2020EquityForwardsMember2022-03-310001025378wpc:June2021EquityForwardsMemberus-gaap:PrivatePlacementMember2021-06-070001025378wpc:June2021EquityForwardsMemberus-gaap:PrivatePlacementMember2021-06-072021-06-070001025378wpc:June2021EquityForwardsMemberus-gaap:PrivatePlacementMember2022-03-310001025378wpc:August2021EquityForwardsMemberus-gaap:PrivatePlacementMember2021-08-090001025378wpc:August2021EquityForwardsMemberus-gaap:PrivatePlacementMember2021-08-092021-08-090001025378wpc:August2021EquityForwardsMemberus-gaap:PrivatePlacementMember2022-03-310001025378us-gaap:PrivatePlacementMember2022-03-310001025378us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-12-310001025378us-gaap:AccumulatedTranslationAdjustmentMember2021-12-310001025378us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-12-310001025378us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2022-01-012022-03-310001025378us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2022-01-012022-03-310001025378us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2022-01-012022-03-310001025378us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2022-01-012022-03-310001025378us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2022-01-012022-03-310001025378us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2022-01-012022-03-310001025378us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2022-01-012022-03-310001025378us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2022-01-012022-03-310001025378us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-03-310001025378us-gaap:AccumulatedTranslationAdjustmentMember2022-03-310001025378us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-03-310001025378us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-12-310001025378us-gaap:AccumulatedTranslationAdjustmentMember2020-12-310001025378us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-12-310001025378us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2021-01-012021-03-310001025378us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2021-01-012021-03-310001025378us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2021-01-012021-03-310001025378us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2021-01-012021-03-310001025378us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2021-01-012021-03-310001025378us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2021-01-012021-03-310001025378us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2021-01-012021-03-310001025378us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2021-01-012021-03-310001025378us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-03-310001025378us-gaap:AccumulatedTranslationAdjustmentMember2021-03-310001025378us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-03-310001025378us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2022-01-012022-03-310001025378us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2021-01-012021-03-310001025378us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMemberwpc:SixInternationalPropertiesMember2021-01-012021-03-31wpc:segment0001025378wpc:InvestmentManagementSegmentMember2021-12-310001025378wpc:OwnedRealEstateSegmentMemberwpc:HotelinBloomingtonMinnesotaMember2022-01-012022-03-310001025378wpc:OwnedRealEstateSegmentMemberwpc:HotelinBloomingtonMinnesotaMember2021-01-012021-03-310001025378us-gaap:SubsequentEventMember2022-04-290001025378us-gaap:SubsequentEventMember2022-04-012022-04-290001025378us-gaap:SubsequentEventMemberus-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMemberwpc:DomesticPropertiesMemberMember2022-04-012022-04-290001025378wpc:ATMMemberus-gaap:SubsequentEventMember2022-04-012022-04-290001025378wpc:ATMMemberus-gaap:SubsequentEventMember2022-04-290001025378us-gaap:SubsequentEventMemberwpc:SeniorUnsecuredCreditFacilityMember2022-04-012022-04-29

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 FORM 10-Q
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2022
or
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from__________ to __________
Commission File Number: 001-13779
wpc-20220331_g1.jpg
W. P. Carey Inc.
(Exact name of registrant as specified in its charter)
Maryland45-4549771
(State of incorporation)(I.R.S. Employer Identification No.)
One Manhattan West, 395 9th Avenue, 58th Floor
New York,New York10001
(Address of principal executive offices)(Zip Code)
 
Investor Relations (212) 492-8920
(212) 492-1100
(Registrant’s telephone numbers, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.001 Par ValueWPCNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer  
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No
Registrant has 192,886,516 shares of common stock, $0.001 par value, outstanding at April 22, 2022.



INDEX
Page No.
PART I — FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
PART II — OTHER INFORMATION
Item 1A. Risk Factors
Item 6. Exhibits
W. P. Carey 3/31/2022 10-Q 1



Forward-Looking Statements

This Quarterly Report on Form 10-Q (this “Report”), including Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 2 of Part I of this Report, contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. These forward-looking statements include, but are not limited to, statements regarding: the Proposed Merger (as defined herein), including the impact thereof; our corporate strategy and estimated or future economic performance and results, including our expectations surrounding the impact of the novel coronavirus (“COVID-19”) pandemic on our business, financial condition, liquidity, results of operations, and prospects; our future capital expenditure and leverage levels, debt service obligations, and plans to fund our liquidity needs; prospective statements regarding our access to the capital markets, including our “at-the-market” program (“ATM Program”) and settlement of our Equity Forwards (as defined herein); the outlook for the investment programs that we manage, including possible liquidity events for those programs; statements that we make regarding our ability to remain qualified for taxation as a real estate investment trust (“REIT”); and the impact of recently issued accounting pronouncements and regulatory activity.

These statements are based on the current expectations of our management. 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 these forward-looking statements. Other unknown or unpredictable risks or uncertainties, like the risks related to the effects of pandemics and global outbreaks of contagious diseases (such as the current COVID-19 pandemic) or the fear of such outbreaks, could also have material adverse effects on our business, financial condition, liquidity, results of operations, and prospects. You should exercise caution in relying on forward-looking statements as they involve known and unknown risks, uncertainties, and other factors that may materially affect our future results, performance, achievements, or transactions. Information on factors that could impact actual results and cause them to differ from what is anticipated in the forward-looking statements contained herein is included in this Report, as well as in our other filings with the Securities and Exchange Commission (“SEC”), including but not limited to those described in Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the SEC on February 11, 2022 (the “2021 Annual Report”), and in Part II, Item 1A. Risk Factors herein. Moreover, because we operate in a very competitive and rapidly changing environment, new risks are likely to emerge from time to time. Given these risks and uncertainties, potential investors are cautioned not to place undue reliance on these forward-looking statements as a prediction of future results, which speak only as of the date of this Report, unless noted otherwise. Except as required by federal securities laws and the rules and regulations of the SEC, we do not undertake to revise or update any forward-looking statements.

All references to “Notes” throughout the document refer to the footnotes to the consolidated financial statements of the registrant in Part I, Item 1. Financial Statements (Unaudited).

W. P. Carey 3/31/2022 10-Q 2



PART I — FINANCIAL INFORMATION

Item 1. Financial Statements.

W. P. CAREY INC. 
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands, except share and per share amounts)
March 31, 2022December 31, 2021
Assets
Investments in real estate:
Land, buildings and improvements$12,031,896 $11,875,407 
Net investments in direct financing leases and loans receivable787,674 813,577 
In-place lease intangible assets and other2,397,121 2,386,000 
Above-market rent intangible assets837,792 843,410 
Investments in real estate16,054,483 15,918,394 
Accumulated depreciation and amortization(2,986,676)(2,889,294)
Assets held for sale, net 8,269 
Net investments in real estate13,067,807 13,037,369 
Equity method investments339,372 356,637 
Cash and cash equivalents205,403 165,427 
Due from affiliates13,594 1,826 
Other assets, net1,043,760 1,017,842 
Goodwill899,596 901,529 
Total assets (a)
$15,569,532 $15,480,630 
Liabilities and Equity
Debt:
Senior unsecured notes, net$5,647,833 $5,701,913 
Unsecured revolving credit facility476,085 410,596 
Unsecured term loans, net303,138 310,583 
Non-recourse mortgages, net351,175 368,524 
Debt, net6,778,231 6,791,616 
Accounts payable, accrued expenses and other liabilities565,971 572,846 
Below-market rent and other intangible liabilities, net181,236 183,286 
Deferred income taxes143,208 145,572 
Dividends payable206,225 203,859 
Total liabilities (a)
7,874,871 7,897,179 
Commitments and contingencies (Note 11)
Preferred stock, $0.001 par value, 50,000,000 shares authorized; none issued
  
Common stock, $0.001 par value, 450,000,000 shares authorized; 192,394,960 and 190,013,751 shares, respectively, issued and outstanding
192 190 
Additional paid-in capital10,152,426 9,977,686 
Distributions in excess of accumulated earnings(2,274,619)(2,224,231)
Deferred compensation obligation57,152 49,810 
Accumulated other comprehensive loss(242,140)(221,670)
Total stockholders’ equity7,693,011 7,581,785 
Noncontrolling interests1,650 1,666 
Total equity7,694,661 7,583,451 
Total liabilities and equity$15,569,532 $15,480,630 
__________
(a)See Note 2 for details related to variable interest entities (“VIEs”).

See Notes to Consolidated Financial Statements.
W. P. Carey 3/31/2022 10-Q 3



W. P. CAREY INC. 
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(in thousands, except share and per share amounts)
Three Months Ended March 31,
20222021
Revenues
Real Estate:
Lease revenues$307,725 $284,665 
Income from direct financing leases and loans receivable18,379 17,742 
Lease termination income and other14,122 1,585 
Operating property revenues3,865 2,179 
344,091 306,171 
Investment Management:
Asset management and other revenue3,420 3,954 
Reimbursable costs from affiliates927 1,041 
4,347 4,995 
348,438 311,166 
Operating Expenses
Depreciation and amortization115,393 110,322 
General and administrative23,084 22,083 
Impairment charges20,179  
Reimbursable tenant costs16,960 15,758 
Property expenses, excluding reimbursable tenant costs13,779 10,883 
Stock-based compensation expense7,833 5,381 
Operating property expenses2,787 1,911 
Merger and other expenses(2,322)(476)
Reimbursable costs from affiliates927 1,041 
198,620 166,903 
Other Income and Expenses
Interest expense(46,053)(51,640)
Other gains and (losses)35,745 (41,188)
Gain on sale of real estate, net11,248 9,372 
Non-operating income8,546 6,356 
Earnings (losses) from equity method investments4,772 (9,733)
14,258 (86,833)
Income before income taxes164,076 57,430 
Provision for income taxes(7,083)(5,789)
Net Income156,993 51,641 
Net loss (income) attributable to noncontrolling interests2 (7)
Net Income Attributable to W. P. Carey$156,995 $51,634 
Basic Earnings Per Share$0.82 $0.29 
Diluted Earnings Per Share$0.82 $0.29 
Weighted-Average Shares Outstanding
Basic191,911,414 176,640,861 
Diluted192,416,642 176,965,510 

See Notes to Consolidated Financial Statements.
W. P. Carey 3/31/2022 10-Q 4



W. P. CAREY INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
(in thousands) 
 Three Months Ended March 31,
 20222021
Net Income$156,993 $51,641 
Other Comprehensive (Loss) Income
Reclassification of unrealized gain on investments to net income(18,688) 
Foreign currency translation adjustments(9,152)(13,902)
Unrealized gain on derivative instruments7,370 19,919 
(20,470)6,017 
Comprehensive Income136,523 57,658 
Amounts Attributable to Noncontrolling Interests
Net loss (income)2 (7)
Comprehensive loss (income) attributable to noncontrolling interests2 (7)
Comprehensive Income Attributable to W. P. Carey$136,525 $57,651 
 
See Notes to Consolidated Financial Statements.
W. P. Carey 3/31/2022 10-Q 5



W. P. CAREY INC.
CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED)
(in thousands, except share and per share amounts)
W. P. Carey Stockholders
DistributionsAccumulated
Common StockAdditionalin Excess ofDeferredOtherTotal
$0.001 Par ValuePaid-inAccumulatedCompensationComprehensiveW. P. CareyNoncontrolling
SharesAmountCapitalEarningsObligationLossStockholdersInterestsTotal
Balance at January 1, 2022
190,013,751 $190 $9,977,686 $(2,224,231)$49,810 $(221,670)$7,581,785 $1,666 $7,583,451 
Shares issued under ATM Program, net2,249,227 2 178,963 178,965 178,965 
Shares issued upon delivery of vested restricted share awards131,982 — (6,600)(6,600)(6,600)
Amortization of stock-based compensation expense7,833 7,833 7,833 
Deferral of vested shares, net(6,836)6,836 —  
Distributions to noncontrolling interests— (14)(14)
Dividends declared ($1.057 per share)
1,380(207,383)506(205,497)(205,497)
Net income156,995 156,995 (2)156,993 
Other comprehensive loss:
Reclassification of unrealized gain on investments to net income(18,688)(18,688)(18,688)
Foreign currency translation adjustments(9,152)(9,152)(9,152)
Unrealized gain on derivative instruments7,370 7,370 7,370 
Balance at March 31, 2022192,394,960 $192 $10,152,426 $(2,274,619)$57,152 $(242,140)$7,693,011 $1,650 $7,694,661 

W. P. Carey Stockholders
DistributionsAccumulated
Common StockAdditionalin Excess ofDeferredOtherTotal
$0.001 Par ValuePaid-inAccumulatedCompensationComprehensiveW. P. CareyNoncontrolling
SharesAmountCapitalEarningsObligationLossStockholdersInterestsTotal
Balance at January 1, 2021
175,401,757 $175 $8,925,365 $(1,850,935)$42,014 $(239,906)$6,876,713 $1,656 $6,878,369 
Shares issued under ATM Program, net2,020,115 3 140,284 140,287 140,287 
Shares issued upon delivery of vested restricted share awards99,090 — (3,744)(3,744)(3,744)
Deferral of vested shares, net(7,049)7,049 —  
Amortization of stock-based compensation expense5,381 5,381 5,381 
Distributions to noncontrolling interests— (15)(15)
Dividends declared ($1.048 per share)
906 (189,139)752 (187,481)(187,481)
Net income51,634 51,634 7 51,641 
Other comprehensive income:
Unrealized gain on derivative instruments19,919 19,919 19,919 
Foreign currency translation adjustments(13,902)(13,902)(13,902)
Balance at March 31, 2021177,520,962 $178 $9,061,143 $(1,988,440)$49,815 $(233,889)$6,888,807 $1,648 $6,890,455 

See Notes to Consolidated Financial Statements.


W. P. Carey 3/31/2022 10-Q 6



W. P. CAREY INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
Three Months Ended March 31,
20222021
Cash Flows — Operating Activities
Net income$156,993 $51,641 
Adjustments to net income:
Depreciation and amortization, including intangible assets and deferred financing costs119,136 114,021 
Net realized and unrealized (gains) losses on equity securities, extinguishment of debt, foreign currency transactions, and other(35,172)42,360 
Impairment charges20,179  
Straight-line rent adjustments
(11,763)(10,184)
Amortization of rent-related intangibles and deferred rental revenue11,639 13,118 
Gain on sale of real estate, net(11,248)(9,372)
Stock-based compensation expense7,833 5,381 
Distributions of earnings from equity method investments5,972 1,603 
(Earnings) losses from equity method investments(4,772)9,733 
Deferred income tax benefit(1,242)(2,567)
Asset management revenue received in shares of CPA:18 – Global(1,024)(3,138)
Change in allowance for credit losses773 (1,358)
Net changes in other operating assets and liabilities(21,422)(22,794)
Net Cash Provided by Operating Activities235,882 188,444 
Cash Flows — Investing Activities
Purchases of real estate (265,426)(150,922)
Proceeds from redemption of securities65,000  
Proceeds from sales of real estate (Note 14)
26,684 88,037 
Funding for real estate construction, redevelopments, and other capital expenditures on real estate(21,767)(29,270)
Funding of short-term loans to affiliates(18,000) 
Capital contributions to equity method investments(17,960) 
Proceeds from repayment of short-term loans to affiliates7,000 21,048 
Other investing activities, net(6,011)(8,445)
Return of capital from equity method investments
1,426 3,086 
Net Cash Used in Investing Activities(229,054)(76,466)
Cash Flows — Financing Activities
Proceeds from Unsecured Revolving Credit Facility275,331 350,525 
Dividends paid(203,131)(185,426)
Repayments of Unsecured Revolving Credit Facility(196,840)(407,975)
Proceeds from shares issued under ATM Program, net of selling costs178,994 140,220 
Prepayments of mortgage principal(8,050)(425,219)
Payments for withholding taxes upon delivery of equity-based awards(6,599)(3,744)
Scheduled payments of mortgage principal(6,437)(14,203)
Other financing activities, net2,443 (95)
Distributions paid to noncontrolling interests(14)(15)
Proceeds from issuance of Senior Unsecured Notes 1,038,391 
Redemption of Senior Unsecured Notes (617,442)
Payment of financing costs (7,797)
Net Cash Provided by (Used in) Financing Activities35,697 (132,780)
Change in Cash and Cash Equivalents and Restricted Cash During the Period
Effect of exchange rate changes on cash and cash equivalents and restricted cash(1,844)(6,479)
Net increase (decrease) in cash and cash equivalents and restricted cash40,681 (27,281)
Cash and cash equivalents and restricted cash, beginning of period217,950 311,779 
Cash and cash equivalents and restricted cash, end of period$258,631 $284,498 

See Notes to Consolidated Financial Statements.
W. P. Carey 3/31/2022 10-Q 7



W. P. CAREY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 1. Business and Organization
 
W. P. Carey Inc. (“W. P. Carey”) is a REIT that, together with our consolidated subsidiaries, invests primarily in operationally-critical, single-tenant commercial real estate properties located in the United States and Northern and Western Europe on a long-term basis. We earn revenue principally by leasing the properties we own to companies on a triple-net lease basis, which generally requires each tenant to pay the costs associated with operating and maintaining the property.

Founded in 1973, our shares of common stock are listed on the New York Stock Exchange under the symbol “WPC.”

On February 27, 2022, we, Corporate Property Associates 18 – Global Incorporated (“CPA:18 – Global”) (a publicly owned, non-traded REIT that primarily invests in commercial real estate properties and is advised by us), CPA:18 Limited Partnership (a subsidiary of CPA:18 – Global, “CPA:18 LP”), and certain of our subsidiaries entered into an agreement and plan of merger (the “Merger Agreement”), pursuant to which CPA:18 – Global will merge with and into one of our indirect subsidiaries in exchange for shares of our common stock and cash (the “Proposed Merger”). On April 4, 2022, we filed a registration statement on Form S-4 with the SEC to register the shares of our common stock to be issued in the Proposed Merger. On April 25, 2022, we filed a Form S-4/A, which was declared effective by the SEC on April 27, 2022. CPA:18 – Global intends to mail the proxy statement/prospectus contained therein to CPA:18 – Global’s stockholders in connection with the Proposed Merger in early May 2022. The Proposed Merger and related transactions are subject to a number of closing conditions, including approval by the stockholders of CPA:18 – Global at a special meeting scheduled for July 26, 2022. If this approval is obtained and the other closing conditions are met, we currently expect the transaction to close in early August 2022, although there can be no assurance that the Proposed Merger will be completed at such time or at all.

Subject to the terms and conditions contained in the Merger Agreement, at the effective time of the Proposed Merger, each share of CPA:18 – Global common stock issued and outstanding immediately prior to the effective time of the Proposed Merger will be canceled and, in exchange for cancellation of such share, the rights attaching to such share will be converted automatically into the right to receive (i) 0.0978 shares of our common stock and (ii) $3.00 in cash, which we refer to herein as the Merger Consideration. Each share of CPA:18 – Global common stock owned by us or any of our subsidiaries immediately prior to the effective time of the Proposed Merger will automatically be canceled and retired, and will cease to exist, for no Merger Consideration.

We elected to be taxed as a REIT under Section 856 through 860 of the Internal Revenue Code effective as of February 15, 2012. As a REIT, we are not subject to federal income taxes on income and gains that we distribute to our stockholders as long as we satisfy certain requirements, principally relating to the nature of our income and the level of our distributions, as well as other factors. We also own real property in jurisdictions outside the United States through foreign subsidiaries and are subject to income taxes on our pre-tax income earned from properties in such countries. Through our taxable REIT subsidiaries (“TRSs”), we also earn revenue as the advisor to certain non-traded investment programs. We hold all of our real estate assets attributable to our Real Estate segment under the REIT structure, while the activities conducted by our Investment Management segment subsidiaries have been organized under TRSs.

At March 31, 2022, we were the advisor to the following entities (Note 3):

CPA:18 – Global; and
Carey European Student Housing Fund I, L.P. (“CESH”), a limited partnership formed for the purpose of developing, owning, and operating student housing properties and similar investments in Europe.

We refer to CPA:18 – Global and CESH collectively as the “Managed Programs.” We no longer raise capital for new or existing funds, but currently expect to continue managing CPA:18 – Global and CESH through the end of their respective life cycles (Note 3).

W. P. Carey 3/31/2022 10-Q 8


Notes to Consolidated Financial Statements (Unaudited)
Reportable Segments

Real Estate — Lease revenues from our real estate investments generate the vast majority of our earnings. We invest primarily in commercial properties located in the United States and Northern and Western Europe, which are leased to companies on a triple-net lease basis. At March 31, 2022, our owned portfolio was comprised of our full or partial ownership interests in 1,336 properties, totaling approximately 157 million square feet, substantially all of which were net leased to 356 tenants, with a weighted-average lease term of 10.8 years and an occupancy rate of 98.5%. In addition, at March 31, 2022, our portfolio was comprised of full or partial ownership interests in 20 operating properties, including 19 self-storage properties and one hotel, totaling approximately 1.4 million square feet.

Investment Management — Through our TRSs, we manage the real estate investment portfolios for the Managed Programs, for which we earn asset management revenue. We may earn incentive revenue and receive other compensation through our advisory agreements with certain of the Managed Programs, including in connection with providing a liquidity event for CPA:18 – Global’s stockholders. In addition, we include equity income generated through our (i) ownership of shares and limited partnership units of the Managed Programs (Note 7) and (ii) special general partner interest in the operating partnership of CPA:18 – Global (through which we participate in its cash flows (Note 3)), in our Investment Management segment.

At March 31, 2022, the Managed Programs owned all or a portion of 55 net-leased properties (including certain properties in which we also have an ownership interest), totaling approximately 10.7 million square feet, substantially all of which were leased to 47 tenants, with an occupancy rate of approximately 99.4%. The Managed Programs also had interests in 66 operating properties (totaling approximately 5.1 million square feet in the aggregate) and four active build-to-suit projects at the same date.

Note 2. Basis of Presentation

Basis of Presentation

Our interim consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not necessarily include all information and footnotes necessary for a complete statement of our consolidated financial position, results of operations, and cash flows in accordance with generally accepted accounting principles in the United States (“GAAP”). In the opinion of management, the unaudited financial information for the interim periods presented in this Report reflects all normal and recurring adjustments necessary for a fair presentation of financial position, results of operations, and cash flows. Our interim consolidated financial statements should be read in conjunction with our audited consolidated financial statements and accompanying notes for the year ended December 31, 2021, which are included in the 2021 Annual Report, as certain disclosures that would substantially duplicate those contained in the audited consolidated financial statements have not been included in this Report. Operating results for interim periods are not necessarily indicative of operating results for an entire year.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in our consolidated financial statements and the accompanying notes. Actual results could differ from those estimates.

Basis of Consolidation

Our consolidated financial statements reflect all of our accounts, including those of our controlled subsidiaries. The portions of equity in consolidated subsidiaries that are not attributable, directly or indirectly, to us are presented as noncontrolling interests. All significant intercompany accounts and transactions have been eliminated.

When we obtain an economic interest in an entity, we evaluate the entity to determine if it should be deemed a VIE and, if so, whether we are the primary beneficiary and are therefore required to consolidate the entity. There have been no significant changes in our VIE policies from what was disclosed in the 2021 Annual Report.

W. P. Carey 3/31/2022 10-Q 9


Notes to Consolidated Financial Statements (Unaudited)
At both March 31, 2022 and December 31, 2021, we considered 14 entities to be VIEs, of which we consolidated six, as we are considered the primary beneficiary. The following table presents a summary of selected financial data of the consolidated VIEs included in our consolidated balance sheets (in thousands):
March 31, 2022December 31, 2021
Land, buildings and improvements$428,927 $426,831 
Net investments in direct financing leases and loans receivable144,103 144,103 
In-place lease intangible assets and other42,873 42,884 
Above-market rent intangible assets26,720 26,720 
Accumulated depreciation and amortization(158,569)(154,413)
Total assets502,314 500,884 
Non-recourse mortgages, net$1,383 $1,485 
Below-market rent and other intangible liabilities, net20,140 20,568 
Total liabilities45,464 46,302 

At both March 31, 2022 and December 31, 2021, our eight unconsolidated VIEs included our interests in (i) six unconsolidated real estate investments, which we account for under the equity method of accounting (we do not consolidate these entities because we are not the primary beneficiary and the nature of our involvement in the activities of these entities allows us to exercise significant influence on, but does not give us power over, decisions that significantly affect the economic performance of these entities), and (ii) two unconsolidated investments in equity securities, which we accounted for as investments in shares of the entities at fair value. As of March 31, 2022, and December 31, 2021, the net carrying amount of our investments in these entities was $593.0 million and $581.3 million, respectively, and our maximum exposure to loss in these entities was limited to our investments.

Reclassifications

Certain prior period amounts have been reclassified to conform to the current period presentation.

We currently present Income from direct financing leases and loans receivable on its own line item in the consolidated statements of income. Previously, income from direct financing leases was included within Lease revenues and income from loans receivable was included within Lease termination income and other in the consolidated statements of income.

Revenue Recognition

There have been no significant changes in our policies for revenue from contracts under Accounting Standards Codification (“ASC”) 606 from what was disclosed in the 2021 Annual Report. ASC 606 does not apply to our lease revenues, which constitute a majority of our revenues, but primarily applies to revenues generated from our hotel operating properties and our Investment Management segment. Revenue from contracts for our Real Estate segment primarily represented hotel operating property revenues of $2.2 million and $0.7 million for the three months ended March 31, 2022 and 2021, respectively (Note 15). Revenue from contracts under ASC 606 from our Investment Management segment is discussed in Note 3.

Lease revenue (including straight-line lease revenue) is only recognized when deemed probable of collection. Collectibility is assessed for each tenant receivable using various criteria including credit ratings (Note 5), guarantees, past collection issues, and the current economic and business environment affecting the tenant. If collectibility of the contractual rent stream is not deemed probable, revenue will only be recognized upon receipt of cash from the tenant.

W. P. Carey 3/31/2022 10-Q 10


Notes to Consolidated Financial Statements (Unaudited)
Restricted Cash

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets to the consolidated statements of cash flows (in thousands):
March 31, 2022December 31, 2021
Cash and cash equivalents
$205,403 $165,427 
Restricted cash (a)
53,228 52,523 
Total cash and cash equivalents and restricted cash
$258,631 $217,950 
__________
(a)Restricted cash is included within Other assets, net on our consolidated balance sheets.

Note 3. Agreements and Transactions with Related Parties
 
Proposed Merger with CPA:18 – Global

The Proposed Merger with CPA:18 – Global is described in Note 1.

Advisory Agreements and Partnership Agreements with the Managed Programs
 
We currently have advisory agreements with CPA:18 – Global and CESH, pursuant to which we earn fees and are entitled to receive reimbursement for certain fund management expenses. We no longer raise capital for new or existing funds, but we currently expect to continue to manage CPA:18 – Global and CESH and earn various fees (as described below) through the end of their respective life cycles. We have partnership agreements with CPA:18 – Global and CESH, and under the partnership agreement with CPA:18 – Global, we are entitled to receive certain cash distributions from its operating partnership.

The merger between Carey Watermark Investors Incorporated (“CWI 1”) and Carey Watermark Investors 2 Incorporated (“CWI 2”), two former affiliates (the “CWI 1 and CWI 2 Merger”), closed on April 13, 2020 and is discussed in detail in the 2021 Annual Report. Subsequently, CWI 2 was renamed Watermark Lodging Trust, Inc. (“WLT”). In connection with the CWI 1 and CWI 2 Merger, we entered into a transition services agreement, under which we provided certain transition services at cost to WLT generally for a period of 12 months from closing. On October 13, 2021, all services provided under the transition services agreement were terminated.

The following tables present a summary of revenue earned, reimbursable costs, and distributions of Available Cash received/accrued from the Managed Programs and WLT for the periods indicated, included in the consolidated financial statements (in thousands):
 Three Months Ended March 31,
 20222021
Asset management revenue (a) (b)
$3,420 $3,954 
Distributions of Available Cash (c)
2,587 1,539 
Reimbursable costs from affiliates (a)
927 1,041 
Interest income on deferred acquisition fees and loans to affiliates (d)
33 34 
$6,967 $6,568 
Three Months Ended March 31,
20222021
CPA:18 – Global
$6,451 $5,359 
CESH516 1,101 
WLT (reimbursed transition services) 108 
$6,967 $6,568 
__________
(a)Amounts represent revenues from contracts under ASC 606.
(b)Included within Asset management and other revenue in the consolidated statements of income.
W. P. Carey 3/31/2022 10-Q 11


Notes to Consolidated Financial Statements (Unaudited)
(c)Included within Earnings (losses) from equity method investments in the consolidated statements of income.
(d)Included within Non-operating income in the consolidated statements of income.

The following table presents a summary of amounts included in Due from affiliates in the consolidated financial statements (in thousands):
March 31, 2022December 31, 2021
Short-term loans to affiliates, including accrued interest$11,033 $ 
Asset management fees receivable1,379 494 
Reimbursable costs919 974 
Accounts receivable241 336 
Current acquisition fees receivable19 19 
Deferred acquisition fees receivable, including accrued interest3 3 
$13,594 $1,826 

Asset Management Revenue
 
Under the advisory agreements with the Managed Programs, we earn asset management revenue for managing their investment portfolios. The following table presents a summary of our asset management fee arrangements with the remaining Managed Programs:
Managed ProgramRatePayableDescription
CPA:18 – Global
0.5% – 1.5%
In shares of its Class A common stock and/or cash, at the option of CPA:18 – Global; payable in shares of its Class A common stock for 2021 through February 28, 2022; payable in cash effective as of March 1, 2022, in light of the Proposed MergerRate depends on the type of investment and is based on the average market or average equity value, as applicable
CESH1.0%In cashBased on gross assets at fair value

Structuring and Other Advisory Revenue
 
Under the terms of the advisory agreements with the Managed Programs, we may earn revenue for structuring and negotiating investments. For CPA:18 – Global and CESH, we may earn fees of 4.5% and 2.0%, respectively, of the total aggregate cost of the investments or commitments made.

Reimbursable Costs from Affiliates
 
The existing Managed Programs reimburse us in cash for certain personnel and overhead costs that we incur on their behalf. For CPA:18 – Global, such costs (excluding those related to our legal transactions group, our senior management, and our investments team) are charged to CPA:18 – Global based on the average of the trailing 12-month aggregate reported revenues of the Managed Programs and us, and personnel costs are capped at 1.0% of CPA:18 – Global’s pro rata lease revenues for both 2022 and 2021. For CESH, reimbursements are based on actual expenses incurred.

Distributions of Available Cash
 
We are entitled to receive distributions of up to 10% of the Available Cash (as defined in CPA:18 – Global’s partnership agreement) from the operating partnership of CPA:18 – Global, payable quarterly in arrears.

W. P. Carey 3/31/2022 10-Q 12


Notes to Consolidated Financial Statements (Unaudited)
Back-End Fees and Interests in the Managed Programs

Under our advisory agreements with certain of the Managed Programs, we may also receive compensation in connection with providing liquidity events for their stockholders. Such back-end fees or interests include or may include disposition fees, interests in disposition proceeds, and distributions related to ownership of shares or limited partnership units in the Managed Programs. There can be no assurance as to whether or when any back-end fees or interests will be realized. Subject to the terms and conditions of the Merger Agreement, upon consummation of the Proposed Merger, we have agreed to waive certain back-end fees that we would have been entitled to receive from CPA:18 – Global upon its liquidation pursuant to the terms of our advisory agreement and partnership agreement with CPA:18 – Global.

Other Transactions with Affiliates
 
Loans to Affiliates

From time to time, our board of directors has approved the making of secured and unsecured loans or lines of credit from us to certain of the Managed Programs, at our sole discretion, generally for the purpose of facilitating acquisitions or for working capital purposes.

The principal outstanding balance on our line of credit to CPA:18 – Global was $11.0 million as of March 31, 2022. No amounts were outstanding as of December 31, 2021. In April 2022, we loaned an additional net amount of $5.0 million to CPA:18 – Global.

Other

At March 31, 2022, we owned interests in nine jointly owned investments in real estate, with the remaining interests held by affiliates or third parties. We account for eight such investments under the equity method of accounting (Note 7) and consolidate the remaining investment. In addition, we owned stock of CPA:18 – Global and limited partnership units of CESH at that date. We accounted for our investment in CPA:18 – Global under the equity method of accounting and elected to account for our investment in CESH under the fair value option (Note 7).

Note 4. Land, Buildings and Improvements and Assets Held for Sale
 
Land, Buildings and Improvements — Operating Leases

Land and buildings leased to others, which are subject to operating leases, and real estate under construction, are summarized as follows (in thousands):
March 31, 2022December 31, 2021
Land$2,168,530 $2,151,327 
Buildings and improvements9,664,500 9,525,858 
Real estate under construction115,198 114,549 
Less: Accumulated depreciation(1,497,655)(1,448,020)
$10,450,573 $10,343,714 
 
During the three months ended March 31, 2022, the U.S. dollar strengthened against the euro, as the end-of-period rate for the U.S. dollar in relation to the euro decreased by 2.0% to $1.1101 from $1.1326. As a result of this fluctuation in foreign currency exchange rates, the carrying value of our Land, buildings and improvements subject to operating leases decreased by $78.0 million from December 31, 2021 to March 31, 2022.

In connection with a change in lease classification due to termination of the underlying lease, we reclassified one property with an aggregate carrying value of $17.3 million from Net investments in direct financing leases and loans receivable to Land, buildings and improvements during the three months ended March 31, 2022 (Note 5).

Depreciation expense, including the effect of foreign currency translation, on our buildings and improvements subject to operating leases was $72.0 million and $67.0 million for the three months ended March 31, 2022 and 2021, respectively.

W. P. Carey 3/31/2022 10-Q 13


Notes to Consolidated Financial Statements (Unaudited)
Acquisitions of Real Estate

During the three months ended March 31, 2022, we entered into the following investments, which were deemed to be real estate asset acquisitions (dollars in thousands):
Property Location(s)Number of PropertiesDate of AcquisitionProperty TypeTotal Capitalized Costs
Pleasant Prairie, Wisconsin11/10/2022Industrial $20,024 
Various, Spain (a)
262/3/2022Funeral Home 146,364 
Various, Denmark (a) (b)
82/11/2022Retail 33,976 
Laval, Canada (a)
12/18/2022Industrial 21,459 
Chattanooga, Tennessee (c)
13/4/2022Warehouse 43,198 
37$265,021 
__________
(a)Amount reflects the applicable exchange rate on the date of transaction.
(b)We also entered into purchase agreements to acquire three additional retail facilities leased to this tenant totaling $10.6 million (based on the exchange rate of the Danish krone at March 31, 2022), which is expected to be completed in 2022.
(c)We also committed to fund an additional $22.8 million for an expansion at the facility, which is expected to be completed in the second quarter of 2023.

The aggregate purchase price allocation for investments disclosed above is as follows (dollars in thousands):
Total Capitalized Costs
Land$39,919 
Buildings and improvements196,710 
Intangibles:
In-place lease (weighted-average expected life of 23.9 years)
31,771 
Below-market rent (expected life of 6.8 years)
(3,379)
$265,021 
Real Estate Under Construction

During the three months ended March 31, 2022, we capitalized real estate under construction totaling $25.9 million. The number of construction projects in progress with balances included in real estate under construction was six as of both March 31, 2022 and December 31, 2021. Aggregate unfunded commitments totaled approximately $53.8 million and $55.3 million as of March 31, 2022 and December 31, 2021, respectively.

During the three months ended March 31, 2022, we completed the following construction projects (dollars in thousands):
Property Location(s)Primary Transaction TypeNumber of PropertiesDate of CompletionProperty Type
Total Capitalized Costs (a)
Hurricane, Utah
Expansion13/8/2022