Brings Total Investment Volume for 2020 to Approximately $826 Million
W. P. Carey Inc. (NYSE: WPC), a leading net lease REIT specializing in corporate sale-leasebacks, build-to-suits and the acquisition of single-tenant net lease properties, today announced the completion of four industrial investments in December 2020 totaling approximately $121 million and covering more than 1.5 million square feet.
Jason Fox, Chief Executive Officer, W. P. Carey, said: "In line with our expectations, we ended the year with a flurry of deal closings in the final weeks of the fourth quarter. This brought total investment volume for 2020 to approximately $826 million, despite the significant slowdown in transaction activity that followed the first wave of COVID. Corporate tenants continue to recognize the benefits of sale-leasebacks as a means of unlocking the value of their critical operating properties and I'm pleased to say we've entered 2021 with continued momentum—carrying over certain live deals from December and building an active pipeline of new transactions."
The four announced investments are triple-net leased to industry-leading tenants, with a weighted-average lease term of approximately 23 years and comprise the following:
- $39 million sale-leaseback of four manufacturing facilities totaling 488,800 square feet, located predominantly in the Midwest and net leased to one of the largest U.S. contract manufacturers of nonresidential precast concrete wall panels. The company benefits from a diverse customer base, with its products primarily used in the construction of distribution centers, industrial facilities, mixed-use offices, retail locations and data centers. The facilities are located in Ohio, Pennsylvania,
Minnesota and Kansas, and have high operational criticality, comprising the company's entire manufacturing footprint. They are triple-net leased under a master lease for a 25-year term, with CPI-based rent increases.
- $30 million sale-leaseback of two state-of-the-art food manufacturing facilities totaling 177,000 square feet, net leased to an industry-leading producer and distributor of pizza crusts. The company serves a diverse set of blue-chip customers, including national restaurants, pizza manufacturers and foodservice distributors. The facilities are strategically located in Missouri and Wisconsin near key interstates in close proximity to key customers and suppliers. The company has consistently invested in the facilities to expand production capabilities and accommodate substantial growth, including a recent significant capacity expansion to its Missouri facility. The facilities are triple-net leased under a master lease for a 25-year term, with fixed annual rent escalations.
- $29 million sale-leaseback of four industrial facilities totaling 449,300 square feet in Texas and Pennsylvania, net leased to Time Manufacturing Company, a leading global manufacturer. Founded in 1965, the company holds top market positions in the global aerial lift, bridge inspection and truck body manufacturing industries, and supports essential businesses, including telecommunications and electric utilities. The facilities are master leased on a triple-net basis for a term of 20 years with fixed annual rent escalations.
- $23 million follow-on investment in an off-market transaction for a 505,800-square-foot distribution facility in the western U.S., net leased to an existing tenant of W. P. Carey. The modern facility is equipped with extensive racking systems and automated sorting capabilities and serves as the tenant's primary distribution center for the western and southwestern U.S., strategically located along a key interstate. To assist the company in meeting rising demand for its products, W. P. Carey has also committed to an additional investment of up to $20 million for a 427,500-square-foot expansion, which is scheduled for completion in 2022. The facility is triple net-leased with fixed increases for a 20-year term, which resets upon completion of the expansion.
Gino Sabatini, Head of Investments, W. P. Carey, added: "Due to our history of timely execution and ability to offer certainty of close, the fourth quarter is typically an active period as companies look to raise capital ahead of year end. As such, we are thrilled to have worked with new and existing tenants to monetize their real estate and help them redeploy the capital into their core businesses and growth strategies. We look forward to growing our partnerships with these tenants and working with them throughout the duration of their leases."
W. P. Carey Inc.
W. P. Carey ranks among the largest net lease REITs with an enterprise value of approximately $18 billion and a diversified portfolio of operationally-critical commercial real estate that includes 1,215 net lease properties covering approximately 142 million square feet as of September 30, 2020. For nearly five decades, the company has invested in high-quality single-tenant industrial, warehouse, office, retail and self-storage properties subject to long-term net leases with built-in rent escalators. Its portfolio is located primarily in the U.S. and Northern and Western Europe and is well-diversified by tenant, property type, geographic location and tenant industry.
