S&P boosts W.P. Carey

S&P said it raised its rating for W.P. Carey and its senior unsecured notes to BBB+ from BBB.

“We expect operating performance will continue to be positive over the next two years supported by contractual rent increases and acquisitions. During the third quarter of 2022, WPC reported same-property rent growth of 3.4% compared to the prior-year period (rent escalators for net lease properties tend to hover around the 1% to 2% range). High inflation for most of 2022 fueled this growth and we expect the company will continue to experience some additional upside from leases scheduled for rent bumps over the next year as inflation remains somewhat resilient heading into 2023,” the agency said in a statement.

S&P also noted WPC continues to finance its external growth in a leverage-neutral manner and anticipates it will sustain debt to EBITDA in the 6x range.

The outlook is stable.

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