WPC Stock: W. P. Carey Dividend, AFFO Coverage and NLOP, 2026

The dividend, quarter by quarter, against AFFO

W. P. Carey measures its dividend against AFFO, adjusted funds from operations per diluted share, and prints both in its quarterly supplemental package. AFFO is a non-GAAP measure: it starts from net income and removes depreciation, impairments, property sale gains and losses, straight-line rent and other non-cash items. The payout in the last column is the dividend declared divided by that quarter's AFFO per share (our arithmetic). The company does not publish an AFFO figure for the first three quarters of 2024 in the documents we saved, so the table skips them; for the whole of 2024 it states a 74.3% payout.

Three readings. First, the reset in the fourth quarter of 2023 is the only cut in this window. The release said the $0.860 dividend was “reflecting both the Company’s strategic exit from the office assets within its portfolio and a lower payout ratio.” A holder of 15 WPC shares also received one NLOP share that quarter, so the cash cut came with a distribution of stock in another company (next section). Second, the payout has been steady near 70% to 73% for two years, because the board has moved the dividend by $0.005 (2024) and then $0.010 (since 2025) a quarter while AFFO grew; full-year payout was 74.3% in 2024 and 72.8% in 2025, per the supplementals. Third, AFFO per share for 2025 was $4.97 and the 2026 guidance midpoint is $5.23, so the dividend of $3.76 annualized is 71.9% of the midpoint (our arithmetic).

The yield figure on every quote page depends on a share price this page does not carry, because filings do not. The company states its own yields at quarter-ends: 5.3% at $64.81 (December 31, 2023), 6.5% at $54.48 (December 31, 2024), 5.7% at $64.36 (December 31, 2025) and 5.3% at $71.50 (June 30, 2026). For the tax side, the 10-K shows how the dividends paid were classified:

This page does not give tax advice; the point is that 2023's total was inflated by the spin-off and that 2024 and 2025 were mostly ordinary income. For how the classification works for REIT holders generally, see our page on return of capital distributions.

What happened to NLOP, the office spin-off

In September 2023 W. P. Carey announced it would leave office. It did it two ways: on November 1, 2023 it contributed 59 office properties to a new REIT, Net Lease Office Properties (NYSE: NLOP), and distributed its shares at one NLOP share for every 15 WPC shares; and it ran an Office Sale Program for the office assets it kept. By its February 2024 earnings release that program had sold 79 properties for $608.1 million, 71 of them in January 2024, and the 10-K says it was completed in 2024. W. P. Carey still manages NLOP under advisory agreements; the two companies share an address at One Manhattan West in New York, and W. P. Carey's chief executive, Jason Fox, is also a trustee of NLOP.

What NLOP started with, per its first 10-K: 55 properties net leased to 59 tenants, $142.4 million of annual rent, a 5.8-year average lease term, KBR in Houston as its largest tenant at 14.2% of rent. It borrowed $455.0 million at the spin-off, a mortgage loan plus a $120.0 million mezzanine loan, and $343.9 million of that went to W. P. Carey. For tax, W. P. Carey set the value of an NLOP share at $11.44 and reported $0.7627 per WPC share as a taxable distribution.

What has happened since is a sale of the portfolio and a series of cash payouts. NLOP paid a $0.34 dividend in January 2024; in the filings we read it paid no other regular dividend, and every payment since August 2025 has been a special cash distribution:

For a holder who received NLOP shares in 2023 and kept them, the filings show $22.69 of cash and stock per NLOP share, 1.98 times the $11.44 tax value (our arithmetic). They do not show what the shares trade for or what is left to distribute, and this page does not quote a price. What they do show is the state of the remaining portfolio at June 30, 2026: 18 properties leased to 10 tenants, about 1.9 million square feet, a 2.7-year average lease term. Quarterly revenue was $6.4 million, against $29.2 million a year earlier. NLOP lost $131.7 million in 2023, $91.5 million in 2024 and $145.3 million in 2025 (net loss, GAAP), and its last mortgage, $21.9 million at 7.0%, matured on July 6, 2026 without being repaid; the 10-Q says “the lender has the right to commence foreclosure proceedings,” which it had not exercised at the time of the report, and default interest of 5.0% is accruing. The collateral is a building formerly leased to Intuit, vacant at the date of the report.

The proxy statement for NLOP's 2026 annual meeting asked shareholders to authorize the board to terminate NLOP once it has sold all or substantially all of its properties. The board said it did not plan to do so soon, expects to sell properties “throughout 2026 and in 2027,” and would keep making distributions out of sales proceeds before then. Abstentions and non-votes counted as votes against, and the meeting was adjourned on June 12, 2026 to solicit more proxies before reconvening on June 25. The result: 9,931,786 for, 138,589 against, 63,932 abstaining, with two-thirds of 14,814,075 shares being 9,876,050 (our arithmetic). It passed by 55,736 votes, or 0.4% of the shares outstanding. The proxy says “No termination fee is payable to our Advisor in respect of a termination of our advisory agreements arising from our dissolution,” and the advisory income W. P. Carey earns from NLOP is already shrinking: the asset management fee began at $7.5 million a year and falls as properties are sold, and the administrative reimbursement fell from $4.0 million to $2.0 million a year on July 1, 2026.

What the Q2 2026 filings changed

Five things changed in the filings since the spring. The first is Hellweg, covered in its own section below. The second is guidance. W. P. Carey set 2026 AFFO guidance of $5.13 to $5.23 on February 10, said on June 17 it was maintaining $5.16 to $5.26, and on July 28 raised and narrowed it to $5.19 to $5.27, assuming $1.7 billion to $2.1 billion of investment (up from $1.5 billion to $2.0 billion) and $350 million to $550 million of dispositions. The third is volume: $1.3 billion invested in the first half, $706.5 million of it in Q2, including a $400.2 million sale-leaseback of 43 industrial properties in the United States with GardenCore, a $74.7 million Whirlpool warehouse in Oklahoma, and in the first quarter $201.8 million in Poland with Raben Group and $211.9 million in Canada with Go Auto. Dispositions were $246.2 million, including all remaining self-storage operating properties and its last investment in Japan.

The fourth is the write-downs. Real estate impairments were $79.4 million in Q2 on ten properties and $103.7 million for the first half on 15, each written down to its estimated selling price less costs to sell, plus two other properties written down because the tenant's lease expires in 2027 ($9.0 million and $6.7 million). The five-quarter series is $4.3 million, $19.5 million, $39.7 million, $40.0 million and $79.4 million, so the charge has risen in each of the last four quarters. AFFO excludes impairments, which is why the dividend's cover did not move; the point for a reader is that the company is writing properties down to what it expects to sell them for, and the 10-Q text we read gives the counts but not the names.

The fifth is how Q2 profit was made. GAAP net income was $185.4 million, 262.1% above a year earlier, because the company recorded a $41.6 million gain on its Lineage shares (against a $69.0 million loss in Q2 2025) and a $49.9 million share of a gain on a portfolio sale by a joint venture. Neither is in AFFO. AFFO per share was $1.34, up 4.7% from $1.28. The company also settled about $345 million of forward equity in the quarter and has 9,914,031 shares, about $691 million, still to settle; the release lists “the settlement of forward equity” among the things that partly offset AFFO growth.

Hellweg: the one tenant that failed in 2026

On June 16, 2026 W. P. Carey said its tenant Hellweg Die Profi-Baumärkte GmbH & Co. KG had “filed for insolvency under self-administration,” the German procedure in which management stays in control. At that date W. P. Carey leased 16 stores to Hellweg for about $15.2 million of annual rent (the Q2 supplemental shows $14.9 million, 0.9% of the portfolio, with 14.7 years of lease left). Rent had been paid through the end of May, and bank guarantees cover three months of rent. The 8-K also said it had signed binding agreements with other home improvement operators for eight stores, about $7.4 million of rent, that start only if the Hellweg leases end, with three to nine months of downtime and free rent.

By September 10 the update was better. The company said it received August rent from Hellweg and expects more in the second half, that it has binding leases for nine stores ($9.8 million, 64% of Hellweg's rent) with new rent starting between late 2026 and mid-2027, that two more stores ($1.2 million, 8%) are in final negotiations, and that five ($4.3 million, 28%) are to be sold by the end of 2026. It expects rent recapture on the 11 re-tenanted stores to be “close to 100%” of current rent. The chief executive said “we’re confident that AFFO is on track to end the year above the midpoint of our current guidance range.” This is the company's description; the Hellweg administrator's process and any court filings are outside the documents read for this page.

Hellweg also shows in the earlier numbers. A first-quarter 2024 lease restructuring with Hellweg abated rent and cut annual base rent, per the 2025 10-K, and five stores that were Hellweg's or had been were sold in the first half of 2026 (Chemnitz, Dortmund, Bonn, Duisburg and Oberhausen). The guidance assumes $8 million to $12 million of potential rent loss from tenant credit events in 2026, including unpaid rent, downtime and free rent.

The 10-Q's credit table shows how much more is on the watch list. W. P. Carey rates its finance receivables on an internal scale of one to five, where four to five means “inclusion on the watch list to risk of default.” At June 30, 2026, nine tenants or obligors were rated 4, with a carrying value of $444.3 million of $1,202.2 million (37.0%, our arithmetic), the same number of obligors as at December 31, 2025; none was rated 5, and 16 obligors with $758.0 million were rated 1 to 3. The 10-Q says no material finance receivable balances were past due. It does not name the nine.

Rent escalators: less inflation protection than in 2023

W. P. Carey's pitch has long been that its leases rise with inflation. The supplementals show how the mix has changed. Annualized base rent (ABR) is the contractual minimum rent in place at each date.

The fall in the uncapped CPI share, from 38.1% to 29.8% of rent, is the largest move, and fixed escalators overtook CPI-linked leases in 2026. The filings do not explain the shift; the investments the company announces (sale-leasebacks of industrial and retail properties in Europe and the United States) are described as having “built-in rent escalations” without saying which type. The practical effect is in the same-store tables. In Q2 2026, contractual same-store ABR rose 2.6% year over year: 2.3% on uncapped CPI leases, 3.2% on capped CPI leases and 2.5% on fixed ones. But the broader measure, same-store rental income including properties with renewals, extensions and modifications, was $336.0 million against $335.4 million, up 0.2%, with warehouse down 1.0%, retail down 3.3% and Europe down 2.6% (constant currency). The two measures differ because the broader one includes properties whose leases were renewed, extended or modified during the year; the supplemental does not break the gap down.

Renewals were small in Q2: six leases on 971,651 square feet renewed at 101.0% of prior rent, and three new leases on 1.2 million square feet signed for 15.5 years.

Lease expirations and who pays the rent

The expiration schedule assumes no renewal or purchase options are exercised.

Only 14.7% of rent expires by the end of 2030 and 44.1% after 2039, which is why the 12.2-year average term is the number the company leads with. The 2028 and 2029 columns are the largest near-term ones, at $69.8 million and $65.8 million.

The ten largest tenants are 18.1% of ABR (21.1% at the end of 2023), and the top 25 are 34.1%. Investment-grade tenants or their parents are 22.7%.

Five of the ten (Metro Italia, Kesko Senukai, Life Time, OBI and Fortenova) have under eight years left, so they matter for the renewal schedule sooner than the average suggests. Geography is a larger story than any one tenant: 60.7% of ABR is in the United States ($997.8 million, Texas largest at 6.3%) and 39.3% ($645.1 million) abroad. The largest foreign markets by rent are Poland (4.7%), Italy (4.5%), Canada (4.5%), the Netherlands (4.2%), the United Kingdom (4.0%), Germany (3.3%) and Spain (2.7%). By property type, 38.7% is industrial, 25.1% warehouse, 22.3% retail (including auto dealerships) and 13.9% other, and by tenant industry the five largest are packaged foods (9.0%), food retail (8.5%), home improvement retail (6.2%), automotive retail (5.8%) and auto parts (4.9%), together 34.4% (our arithmetic). Office is no longer shown on its own: the supplemental folds it into “other”, with education, specialty, self-storage, laboratory, hotel and land. It was 5.4% of ABR, $72.1 million, at December 31, 2023.

Debt: due dates, currencies and covenants

Pro rata debt was $8,954.9 million at June 30, 2026, at a weighted average rate of 3.2% and a weighted average maturity of 4.5 years. Net debt was 5.5 times annualized adjusted EBITDA, or 5.1 times counting the unsettled forward equity; it was 5.9 times at the end of 2025. Total debt was 42.6% of gross assets and secured debt only 0.9%. Moody’s rates the company Baa1 and S&P BBB+, both stable. Liquidity was $2.7 billion, including about $1.9 billion of revolver capacity.

The structure is mostly unsecured notes, and mostly euros: $5,416.3 million of the debt, 60.5% (our arithmetic), is euro-denominated, $2,917.9 million is in dollars and $620.7 million in sterling and Canadian dollars. Currency moves go through the balance sheet: the 10-Q says the dollar strengthened against the euro in the first half of 2026, which reduced the carrying value of the net-lease land and buildings by $139.4 million. The senior notes by maturity, as of June 30, 2026 (pro rata, dollar equivalents):

On July 2, 2026 the company issued $350 million of 5.200% notes due September 15, 2036 and used the proceeds on July 29 to prepay the 4.250% notes due that October, a 0.95-point higher coupon on the same amount (our arithmetic). The same pattern is the main thing to watch in the table: three euro notes totaling $1,737.6 million (our arithmetic), due April 2027, April 2028 and June 2030, carry coupons of 2.1%, 1.4% and 1.0%, while the euro notes due in 2034 and 2035 carry 3.7% and 3.8%. The earnings release lists “higher interest rates from debt refinancings” among the things holding back AFFO growth. Beyond the notes there are euro and other-currency term loans due February 2028 and April 2029 ($1,170.7 million, our arithmetic from the two lines), a $116.2 million revolver balance and $218.0 million of mortgages. The note covenants reported at June 30, 2026 were: total debt to total assets 40.0% (limit 60%), secured debt 0.9% (limit 40%), EBITDA to debt service 5.0 times (minimum 1.5) and unencumbered assets to unsecured debt 245.1% (minimum 150%).

Does W. P. Carey still run non-traded REITs?

No. The premise that it still sponsors non-traded vehicles is out of date. Its last non-traded REIT, CPA:18, merged into W. P. Carey on August 1, 2022 and the advisory agreements ended, adding about $2.2 billion of real estate to the portfolio, per the 10-K. The documents we read show two vehicles managed since: NLOP, which trades on the NYSE and whose own 10-Q says it is externally managed by WPC affiliates, and Carey European Student Housing Fund I, a private fund that sold its last property in the first quarter of 2026 and was dissolved in May 2026. The income line for all of it, “investment management”, was $1.394 million in Q2 2026 and $2.884 million for the half, 0.3% of revenue (our arithmetic), all of it from NLOP, and falling as NLOP sells properties.

We found no new program in the 10-Q. The history that matters for people who held CPA:12 through CPA:18, Carey Watermark or Carey Credit Income Fund (what each share became, exchange ratios, special distributions, the 2022 hotel sale at $6.768 a share) is on our page What happened to W. P. Carey's CPA REITs. For how a listed net-lease REIT differs from a non-traded one in liquidity and fees, see non-traded REITs versus publicly traded REITs, our reviews of Global Net Lease, Fortress Net Lease REIT and Blue Owl Real Estate Net Lease Trust, and how triple-net lease clauses put taxes, insurance and repairs on the tenant.

What a holder or reader can do with this

This page is analysis of public documents, not investment, legal or tax advice. These are checks the filings let you make yourself.

• Test the dividend with AFFO, not GAAP. Diluted net income per share over the last five quarters was $0.23, $0.64, $0.67, $0.80 and $0.82, against dividends of $0.900 to $0.940, because depreciation, impairments and one-off gains pass through it; AFFO was $1.25 to $1.34. Decide which measure you rely on, and note the company reports its payout only against AFFO.
• Watch three numbers in the Q3 report. Hellweg rent collected (the company's rent-loss outlook of $8 million to $12 million is a range, not a result), the 2026 guidance range (the company said on September 10 it expects to finish above the midpoint), and the impairment charge, which has risen in each of the last four quarters. In 2025 W. P. Carey reported third-quarter results on October 28 (8-K) and filed the 10-Q on October 29, so the same window is likely this year; that is a pattern, not a schedule.
• If you hold NLOP shares from the 2023 spin-off, read NLOP's own 10-Q and 8-Ks, not WPC's. The June 25 vote lets the board terminate the company once it has sold substantially all properties; it did not set a date, and the board said distributions come out of sale proceeds in the meantime. The 18 remaining properties have a 2.7-year average lease term and one mortgage past its maturity date.
• If you hold WPC shares that began as CPA REIT shares, the number of WPC shares you hold depends on the exchange ratios of each merger, and the 2023 NLOP distribution was reported as $0.7627 per WPC share of taxable distribution. Our CPA page lists the ratios; your own broker records and 1099-DIVs decide the rest.
• If you own WPC through an ETF, your exposure is the same portfolio inside a basket; see what the REIT ETFs hold.

FAQ

All figures are from W. P. Carey Inc. (CIK 1025378) and Net Lease Office Properties (CIK 1952976) SEC filings read on EDGAR on October 15, 2026. W. P. Carey: Form 10-Q for Q2 2026 (accession 0001025378-26-000119, filed July 29, 2026); the July 28, 2026 8-K with the earnings release and supplemental (0001025378-26-000114); the June 17, 2026 Hellweg 8-K (0001025378-26-000091); the September 10, 2026 8-K (0001025378-26-000121); Forms 10-K for 2024 (0001025378-25-000031) and 2025 (0001025378-26-000036); and the earnings releases and supplementals for Q4 2023 (0001025378-24-000034), Q4 2024 (0001025378-25-000022) and Q4 2025 (0001025378-26-000026). NLOP: Form 10-Q for Q2 2026 (0001952976-26-000057), Forms 10-K for 2023 (0001952976-24-000019) and 2025 (0001952976-26-000012), the proxy statement filed April 16, 2026 (0001952976-26-000024), the June 25, 2026 vote 8-K (0001952976-26-000050) and the January 20, 2026 8-K (0001952976-26-000005). Payout ratios, sums, shares, percentages of debt in euros, the vote margin and per-share totals are our arithmetic. This is analysis of public documents, not investment, legal or tax advice.