W.P. Carey sees FY23 investment volume $1.3B

W. P. Carey announced investment volume for the 2023 full year of approximately $1.3B, including investments totaling approximately $320M completed during the Q4. Q$ investment activity included the $157M cross-border sale-leaseback of 11 facilities across Italy, Spain and Germany net leased under master leases by country to Fedrigoni Group, a global manufacturer of high added value specialty papers for luxury packaging and other creative applications, premium labels and self-adhesive materials. As part of the same transaction, W. P. Carey is scheduled to close the acquisition of five additional properties in Italy for approximately $148M in January, subject to certain conditions. During 2023, the company remained focused on acquiring high-quality, single-tenant warehouse and industrial assets, which comprised approximately 75% of its full-year investment volume. From a geographic perspective, approximately 80% of its 2023 volume was in North America and 20% was in Europe. Jason Fox, CEO, said: “Throughout 2023, pricing expectations among sellers persistently lagged rising interest rates, causing deals to take longer to negotiate and close, especially during the second half of the year. Given this dynamic, we remained disciplined and actively exerted our pricing power to preserve spread, closing $320 million of investments at an approximately 7.7% weighted-average cap rate during the fourth quarter. This brought our 2023 investment volume to $1.3B, with two additional investments totaling around $180M scheduled to close in January.”