W. P. Carey (WPC) Reports Q1 FFO of $1.31, Says Formal Strategic Review Reaffirmed Benefits of Diversified Business Model

W. P. Carey (NYSE: WPC) reported Q1 EPS of $1.31, $0.11 better than the analyst estimate of $1.20. Revenue for the quarter came in at $221 million versus the consensus estimate of $177.19 million.

GUIDANCE:

W. P. Carey sees FY2016 EPS of $5.00-$5.20, versus the consensus of $4.88.

MANAGEMENT COMMENTARY

"For the 2016 first quarter we generated AFFO per diluted share of $1.31, up 7.4% from the prior year period driven primarily by growth in assets under management within our investment management business and lower general and administrative expenses, partly offset by lower structuring revenues," said Mark J. DeCesaris, Chief Executive Officer of W. P. Carey.

"After a careful and thorough process, covering a wide range of alternatives, our formal strategic review has reaffirmed the benefits of our diversified business model. Accordingly, with the full support of our board, we are implementing a comprehensive business plan designed to best position the Company to generate long-term value for our shareholders focused on six key priorities — growth, diversification, operational efficiency, balance sheet strength and flexibility, proactive asset management and transparency. By executing on this plan, including identified annualized pre-tax cost savings of approximately $20 million, we currently expect to generate AFFO of between $5.00 and $5.20 per diluted share for the 2016 full year."

For earnings history and earnings-related data on W. P. Carey (WPC) click here.

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