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Economic Moat Q Uncertainty Q Price/Fair Value Q ESG Risk Rating Assessment 1 Trailing Dividend Yield % Market Cap Investment Style Sector Industry
None High 0.8 ;;;;; 6.65 13.7084 Bil Mid Core Real Estate REIT - Diversified
6 Sep 2023 05:00, UTC
200
Fair ValueQ oant
80.22
150
Last Close
64.08
100
Overvalued
50 Fairly Valued
35 Undervalued
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 YTD Performance
0.92 1.13 1.05 0.98 1.08 1.03 1.02 0.92 1.11 0.93 0.80 Price/Fair Value
24.35 20.27 -10.38 6.81 23.39 -0.72 28.83 -6.61 22.21 0.42 -15.27 Total Return %
-8.78 7.41 -11.07 -5.63 1.91 4.33 -2.39 -27.51 -3.58 19.85 -32.19 +/- Index
As of 15 Sep 2023 | Index: Morningstar US Market TR USD. Fair Value data as of 15 Sep 2023, 22:33 UTC.
1
The ESG Risk Rating Assessment is a representation of Sustainalytics' ESG Risk Rating. Lee Davidson, Chief Analytics Officer for Morningstar, Inc, oversees the methodology that sup-
ports Quantitative Fair Value Estimates and Quantitative Star Ratings. Mr. Davidson is guided by the Morningstar, Inc. Code of Ethics in carrying out his responsibilities. For information
regarding Conflicts of Interests, visit http://global.morningstar.com/equitydisclosures.
Key Metrics as of 15 Sep 2023 Business Description prise value-to-market value ratio is 1.61 and its an-
W.P. Carey Inc is a real estate investment trust nualized trailing 12-month volatility is 16.02%.
Metrics Percentile in Sector These fall at the 80th and 12th percentiles in the
principally involved in the ownership of properties
Earnings Yield (%) 5.6 66.0 located in the U.S., Western Europe, and Northern equity universe and at the 45th and 21st in the real
Sales Yield (%) 12.4 28.0 Europe. W.P. Carey organizes its operations into estate sector, respectively.
Book Value Yield (%) 67.3 23.0 Real Estate and Investment Management seg-
ments. The vast majority of the company's income Economic Moat as of 15 Sep 2023
Return on Assets (%)* 4.4 80.0
is derived from its Real Estate division in the form Quantitatively, we do not believe W.P. Carey has
Revenue(Bil)* 1.7 87.0 of lease revenue from long-term agreements with an economic moat. Its moat score of 0.24 corres-
Market Value (Bil) 13.7 95.0
companies. W.P. Carey's real estate portfolio is ponds to the 35th percentile in the real estate sec-
primarily comprised of single-tenant office, indus- tor. Furthermore, this rating last differed from its
Enterprise Value (Bil) 22.1 94.0
trial, warehouse, and retail facilities located around previous rating of Narrow on 02/06/2023, when
EVMV Ratio 1.6 45.0 the world. most of the company's revenue comes the company's moat score fell from its maximum of
from properties in the USA. The company's Invest- 0.74 (score of 1 indicates greatest economic moat).
Volatility TTM (%) 16.0 21.0
ment Management unit generates revenue from The company also maintains a quantitative finan-
Drawdown TTM (%) 24.1 51.0 providing real estate advisory and portfolio man- cial health rating of Moderate. Its score sits at the
Volume (Mil) 1.0 70.0 agement services to other REITs. 57th percentile overall and the 70th percentile in
*30 Jun 2023 0% 25 50 75 100 the sector.
Valuation as of 16 Sep 2023 Examining the company's financials and market
Economic Moat History as of 15 Sep 2023 Morningstar affirms a 5-star quantitative rating for statistics, we find these ratings are principally driv-
W.P. Carey. We calculate this outcome using the en by its book value yield and enterprise value-to-
No Moat Narrow Moat Wide Moat market value ratio. The book value yield is 67.34%,
0.00-0.70 0.71-0.99 0.99-1.00 company's underlying model-driven valuation and
uncertainty scores. sitting at the 23rd percentile in the real estate sec-
1.0 The stock's last closing price was 64.08, a discount tor. The company's enterprise value-to-market
of 20.12% to its Quantitative Fair Value estimate of value ratio is 1.61, corresponding to the 80th per-
80.22. This discount has ranged between 23% and centile in the equity coverage universe and the
0.92% over the past year. The stock's price to fair 45th percentile in the sector.
0.5 value ratio is at the 65th percentile in our global
equity coverage universe for this methodology and Fundamentals as of 16 Sep 2023
at the 72nd percentile relative to its peers in the W.P. Carey maintains earnings per share of 3.58.
real estate sector. The company further earns a return on invested
0.0
W.P. Carey furthermore holds a High quantitative capital of 6.26%. The shares offer a dividend yield
2018 2019 2020 2021 2022 2023 uncertainty rating. of 6.55%. These values are calculated over a trail-
The company's quantitative star rating dates to ing 12-month period.
after 07/11/2023, before which it was 4-star. Simil- As of last market close, W.P. Carey has a price-to-
arly, the firm's uncertainty rating changed from earnings ratio of 17.95, falling below the 56th per-
Medium to High after 07/25/2023. centile in its sector (where a lower percentile
We examine the financials and market statistics for means a lower ratio) and ranging between 17.65
W.P. Carey to determine these ratings. Its enter-
©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions ®
presented herein do not constitute investment advice; are provided solely for informational purposes and therefore is not an offer to buy or sell a security; are not warranted to be correct, complete or accurate; and are
subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses or
ß
opinions or their use. The information herein may not be reproduced, in any manner without the prior written consent of Morningstar. Please see important disclosures at the end of this report.
Quantitative Equity Research Report | Release: 18 Sep 2023, 03:36 UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 2 of 6
Economic Moat Q Uncertainty Q Price/Fair Value Q ESG Risk Rating Assessment 1 Trailing Dividend Yield % Market Cap Investment Style Sector Industry
None High 0.8 ;;;;; 6.65 13.7084 Bil Mid Core Real Estate REIT - Diversified
6 Sep 2023 05:00, UTC
discount.
75 204.00 80.22
UncertaintyQ : oant
Economic Moat
Price to Earnings 18.0 56.0 High None
Financial Health
Price to Cash Flow 12.4 51.0 50 136.00
Last Close
Moderate
1-Star Price
ROIC** 6.3 79.0 64.08
96.65
*31 Aug 2023 0% 25 50 75 100 25 68.00 5-Star Price
**30 Jun 2023
66.58
0 0.00
14 15 16 17 18 19 20 21 22 23
and 34.08 over the past year. The company's price- Financials as of 17 Sep 2023 (Fiscal Year End 31 Dec 2023)
to-free cash flow ratio is 12.41, falling at the 51st 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 YTD Fiscal
percentile in its sector and ranging between 12.2 490 908 938 942 848 886 1,233 1,209 1,332 1,479 880 Revenue (Mil)
and 16.98 over the past year. 152 329 387 396 371 405 534 554 625 700 403 Operating Income (Mil)
30.96 36.17 41.29 42.1 43.77 45.78 43.34 45.79 46.91 47.32 45.82 Operating Margin (%)
Contact 99 240 172 268 277 411 305 455 410 599 439 Net Income (Mil)
One Manhattan West, 395 9th Avenue, New York,
1.41 2.39 1.61 2.49 2.56 3.49 1.78 2.60 2.24 2.99 2.05 Diluted Earnings/Share
NY 10001
208 399 509 547 521 509 812 802 926 1,004 530 Operating Cash Flow (Mil)
+1 212 492-1100
-14.04 -24.02 -8.74 — — — — — — — -0.27 Capital Spending (Mil)
institutionalir@wpcarey.com
194 375 500 547 521 509 812 802 926 1,004 530 Free Cash Flow (Mil)
https://www.wpcarey.com
70 100 107 107 108 118 171 175 183 200 214 Avg Shares Outstand(Mil)
©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions ®
presented herein do not constitute investment advice; are provided solely for informational purposes and therefore is not an offer to buy or sell a security; are not warranted to be correct, complete or accurate; and are
subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses or
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opinions or their use. The information herein may not be reproduced, in any manner without the prior written consent of Morningstar. Please see important disclosures at the end of this report.
Quantitative Equity Research Report | Release: 18 Sep 2023, 03:36 UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 3 of 6
Appendix
Economic Moat History as of 15 Sep 2023 (No Moat: 0.00-0.70, Narrow Moat: 0.70-0.99, Wide Moat: 0.99-1.00)
Year January February March April May June July August September October November December
2023 0.61 0.45 0.35 0.36 0.31 0.26 0.27 0.27 0.24 — — —
2022 0.25 0.23 0.12 0.17 0.24 0.41 0.28 0.77 0.48 0.53 0.44 0.68
2021 0.12 0.19 0.50 0.37 0.28 0.35 0.19 0.25 0.09 0.15 0.19 0.23
2020 0.24 0.04 0.07 0.05 0.06 0.04 0.04 0.02 0.03 0.09 0.07 0.10
2019 0.26 0.47 0.27 0.37 0.27 0.25 0.52 0.05 0.08 0.10 0.04 0.10
2018 0.51 0.31 0.37 0.24 0.16 0.21 0.16 0.20 0.25 0.27 0.46 0.48
©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions ®
presented herein do not constitute investment advice; are provided solely for informational purposes and therefore is not an offer to buy or sell a security; are not warranted to be correct, complete or accurate; and are
subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses or
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Quantitative Equity Research Report | Release: 18 Sep 2023, 03:36 UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 4 of 6
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