W P Carey Inc
For the period ended Sep 30, 2024. Filed Oct 30, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Oct 30, 2024
WPC$65.05-0.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-07-31.
0001025378-24-000119
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsSupplemental Financial MeasuresCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-10-30.
0001025378-24-000142
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsSupplemental Financial MeasuresThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 192 previous paragraphs and 206 current paragraphs.
132 unchanged; 52 reworded; 21 added; 7 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 15 previous and 15 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (21)
Current report
•We acquired 18 investments totaling $687.8 million (Note 4, Note 5).
Current report
•We acquired the remaining 10% controlling interest in a jointly owned investment for $10.5 million, bringing our ownership interest to 100%. In addition, we converted the nine self-storage properties that comprised this investment from operating properties to net leases, as described below under Leasing Transactions (Note 7).
Current report
Leasing Transactions
Current report
•On September 1, 2024, we entered into net lease agreements for certain self-storage properties previously classified as operating properties. As a result, in September 2024, we reclassified three consolidated self-storage properties with an aggregate carrying value of $46.1 million from Land, buildings and improvements — operating properties to Land, buildings and improvements — net lease and other. Effective as of that time, we began recognizing lease revenues from these properties, whereas previously we recognized operating property revenues and expenses from these properties. In addition, in connection with the net lease agreements described above, in September 2024, we reclassified nine self-storage properties from Equity method investments and recorded the following amounts: (i) $84.4 million to Land, buildings and improvements — net lease and other, and (ii) $20.6 million to In-place lease intangible assets and other. Effective as of that time, we began recognizing lease revenues from these properties (Note 4, Note 7).
Current report
•In September 2024, we executed amendments to our Senior Unsecured Credit Facility to incorporate a sustainability-linked feature that provides for interest rate and facility fee adjustments if certain key performance indicators, primarily related to emissions reduction targets, are met.
Current report
(a)During the third quarter of 2024, we entered into net lease agreements for certain self-storage properties previously classified as operating properties. As a result, during the third quarter of 2024, we reclassified 12 self-storage properties from operating properties to net leases (Note 4, Note 7). In addition, we acquired one self-storage operating property during the nine months ended September 30, 2024 (Note 4).
Current report
(b)We sold one hotel operating property during the nine months ended September 30, 2024 (Note 4, Note 14).
Current report
(d)All ABR from properties in Mexico is denominated in U.S. dollars.
Current report
(f)Includes automotive dealerships.
Current report
(c)Includes (i) lease revenues of $0.9 million from 12 self-storage operating properties that were converted to net leases on September 1, 2024 (Note 4, Note 7) and (ii) an increase in lease revenues of $0.4 million as a result of a lease restructuring for 27 existing net-leased self-storage properties that was executed on September 1, 2024.
Current report
(c)Represents interest income from a secured loan receivable of $15.0 million that we provided in connection with a property disposition in June 2024, which was repaid in full in September 2024 (Note 5).
Current report
For the three and nine months ended September 30, 2024, as compared to the same periods in 2023, stock-based compensation expense increased by $4.4 million and $5.4 million, respectively. The increases were primarily due to (i) changes in projected PSU payouts of $2.7 million and $3.3 million, respectively, (ii) the modification of RSUs and PSUs in connection with an executive departure totaling $1.4 million and $1.5 million, respectively, and (iii) the higher value of RSUs granted in 2024 compared to those RSUs that vested in 2024 totaling $0.3 million and $0.6 million, respectively.
Current report
For the three months ended September 30, 2024 as compared to the same period in 2023, property expenses, excluding reimbursable tenant costs, decreased by $2.0 million primarily due to the impact of the Spin-Off, the Office Sale Program, and other dispositions.
Current report
For the three and nine months ended September 30, 2023, merger and other expenses are primarily comprised of costs incurred in connection with the Spin-Off, which was completed in November 2023 (Note 1).
Current report
Gain on Change in Control of Interests
Current report
On September 1, 2024, we acquired the remaining interest in an investment in which we already had a joint interest and accounted for under the equity method. Due to the change in control of this jointly owned investment, we recorded a gain on change in control of interests of $31.8 million reflecting the difference between our carrying value and the fair value of our previously held equity interest. Subsequent to this acquisition, we consolidated this wholly owned investment (Note 7).
Current report
(b)On September 1, 2024, we acquired the remaining 10% controlling interest in the Johnson Self Storage jointly owned investment, bringing our ownership interest to 100%. Following this acquisition, we no longer recognize equity income from this consolidated investment (Note 7).
Current report
For the three months ended September 30, 2024 as compared to the same period in 2023, provision for income taxes increased by $4.0 million, primarily due to a deferred tax benefit recognized during the prior year period related to an impairment charge recorded on a foreign property.
Current report
(a)Amounts for the three and nine months ended September 30, 2024 represent a gain recognized on the remaining interest in an investment acquired during the third quarter of 2024, which we had previously accounted for under the equity method (Note 7).
Removed paragraphs (7)
Previous report
Significant Developments
Previous report
Management Change
Previous report
On July 10, 2024, we announced that John J. Park will step down as President of the Company effective September 30, 2024. The separate role of President will be eliminated, and the title will be assumed by Jason E. Fox, the Company’s Chief Executive Officer, effective October 1, 2024. Mr. Park will remain Senior Advisor to the Company through February 28, 2025.
Previous report
•We acquired ten investments totaling $535.2 million (Note 4, Note 5).
Previous report
W. P. Carey 6/30/2024 10-Q –36
Previous report
(e)Includes automotive dealerships.
Previous report
For the six months ended June 30, 2024 as compared to the same period in 2023, stock-based compensation expense increased by $1.0 million, primarily due to changes in the projected payout for PSUs and higher amortization of RSUs.
Reworded paragraphs (52)
Previous wording
During the six months ended June 30, 2024, we completed the following (as further described in the consolidated financial statements):
Current wording
During the nine months ended September 30, 2024, we completed the following (as further described in the consolidated financial statements):
Previous wording
•We funded approximately $4.9 million for a construction loan to build a retail complex in Las Vegas, Nevada, during the six months ended June 30, 2024. Through June 30, 2024, we have funded $236.3 million (Note 7).
Current wording
•We funded approximately $8.8 million for a construction loan to build a retail complex in Las Vegas, Nevada, during the nine months ended September 30, 2024. Through September 30, 2024, we have funded $240.2 million (Note 7).
Previous wording
•We committed to fund a redevelopment project for $44.1 million. We currently expect to complete the project in 2025 (Note 4).
Current wording
•We committed to fund two construction projects totaling $49.0 million. We currently expect to complete these projects in 2025 (Note 4).
Previous wording
•We disposed of 165 properties for total proceeds, net of selling costs, of $1.0 billion, including (i) our portfolio of 78 U-Haul properties for total proceeds, net of selling costs, of $464.1 million, (ii) 75 properties sold under the Office Sale Program for total proceeds, net of selling costs, of $451.9 million, and (iii) 12 additional properties for total proceeds, net of selling costs, of $87.0 million (Note 14).
Current wording
•We disposed of 172 properties for total proceeds, net of selling costs, of $1.1 billion, including (i) our portfolio of 78 U-Haul properties for total proceeds, net of selling costs, of $464.1 million, (ii) 77 properties sold under the Office Sale Program for total proceeds, net of selling costs, of $498.2 million, and (iii) 17 additional properties for total proceeds, net of selling costs, of $132.3 million (Note 14).
Previous wording
•We repaid non-recourse mortgage debt outstanding totaling $118.7 million with a weighted-average interest rate of 4.8% (Note 10).
Current wording
•We repaid non-recourse mortgage debt outstanding totaling $176.6 million with a weighted-average interest rate of 4.4% (Note 10).
Previous wording
We declared cash dividends totaling $1.735 per share during the six months ended June 30, 2024, comprised of two quarterly dividends per share of $0.865 and $0.870 (Note 12).
Current wording
We declared cash dividends totaling $2.610 per share during the nine months ended September 30, 2024, comprised of three quarterly dividends per share of $0.865, $0.870, and $0.875 (Note 12).
Previous wording
(a)Amount for the six months ended June 30, 2024 includes $807.1 million of proceeds from the sales of net investments in sales-type leases (U-Haul and State of Andalusia portfolios) (Note 5). Such proceeds are included within Net cash provided by operating activities in accordance with ASC 842, Leases.
Current wording
(a)Amount for the nine months ended September 30, 2024 includes $807.0 million of proceeds from the sales of net investments in sales-type leases (U-Haul and State of Andalusia portfolios) (Note 5). Such proceeds are included within Net cash provided by operating activities in accordance with ASC 842, Leases.
Previous wording
Total revenues decreased for the three and six months ended June 30, 2024 as compared to the same periods in 2023, primarily due to lower lease revenues (substantially as a result of the Spin-Off and the Office Sale Program (Note 1)) and lower operating property revenue (substantially as a result of dispositions of hotel operating properties) (Note 4).
Current wording
Total revenues decreased for the three and nine months ended September 30, 2024 as compared to the same periods in 2023, primarily due to lower lease revenues (substantially as a result of the Spin-Off and the Office Sale Program (Note 1)) and lower operating property revenues (substantially as a result of dispositions of hotel operating properties) (Note 4).
Previous wording
Net income attributable to W. P. Carey decreased for the three months ended June 30, 2024 as compared to the same period in 2023, primarily due to the impact of the Spin-Off and the Office Sale Program, and impairment charges recognized during the current year period, partially offset by higher gain on sale of real estate.
Current wording
Net income attributable to W. P. Carey decreased for the three months ended September 30, as compared to the same period in 2023, primarily due to a non-cash unrealized loss recognized on our investment in shares of Lineage during the current-year period (Note 8) and the impact of the Spin-Off and the Office Sale Program, partially offset by a gain on change in control of interests recognized in connection with the purchase of the remaining interest in a jointly owned investment during the current-year period (Note 7).
Previous wording
Net income attributable to W. P. Carey decreased for the six months ended June 30, 2024 as compared to the same period in 2023, primarily due to lower gain on sale of real estate, the impact of the Spin-Off and the Office Sale Program, and impairment charges recognized during the current year period.
Current wording
Net income attributable to W. P. Carey decreased for the three and nine months ended September 30, 2024 as compared to the same period in 2023, primarily due to lower gain on sale of real estate, a non-cash unrealized loss recognized on our investment in shares of Lineage during the current-year period (Note 8), and the impact of the Spin-Off and the Office Sale Program, partially offset by a gain on change in control of interests recognized in connection with the purchase of the remaining interest in a jointly owned investment during the current-year period (Note 7).
Previous wording
AFFO decreased for the three and six months ended June 30, 2024 as compared to the same periods in 2023, primarily due to the impact of the Spin-Off and Office Sale Program, as well as certain lease restructurings and property vacancies.
Current wording
AFFO decreased for the three and nine months ended September 30, 2024 as compared to the same periods in 2023, primarily due to the impact of the Spin-Off and Office Sale Program.
Previous wording
(a)Amounts for the six months ended June 30, 2024 and 2023 include $4.9 million and $23.7 million, respectively, of funding for a construction loan (Note 7). Amount for the six months ended June 30, 2024 includes $83.9 million of sale-leasebacks classified as loans receivable (Note 5).
Current wording
(c)Amounts for the nine months ended September 30, 2024 and 2023 include $8.8 million and $36.6 million, respectively, of funding for a construction loan (Note 7). Amount for the nine months ended September 30, 2024 includes $83.9 million of sale-leasebacks classified as loans receivable (Note 5). Amount for the nine months ended September 30, 2024 includes the purchase of the remaining interest in a jointly owned investment for $10.5 million (Note 7).
Previous wording
(b)Other properties within Midwest include assets in Minnesota, Iowa, Kansas, Missouri, Nebraska, South Dakota, and North Dakota. Other properties within South include assets in Louisiana, Arkansas, Oklahoma, and Mississippi. Other properties within East include assets in Virginia, Connecticut, Maryland, West Virginia, New Hampshire, and Maine. Other properties within West include assets in Oregon, Colorado, Washington, Nevada, Hawaii, Idaho, Montana, Wyoming, and New Mexico.
Current wording
(b)Other properties within Midwest include assets in Minnesota, Iowa, Kansas, Missouri, Nebraska, South Dakota, and North Dakota. Other properties within South include assets in Louisiana, Arkansas, Oklahoma, and Mississippi. Other properties within East include assets in New Jersey, Virginia, Connecticut, Maryland, West Virginia, New Hampshire, and Maine. Other properties within West include assets in Oregon, Colorado, Nevada, Washington, Hawaii, Idaho, Montana, Wyoming, and New Mexico.
Previous wording
(c)$48.2 million (93%) of ABR from properties in Canada is denominated in U.S. dollars, with the balance denominated in Canadian dollars.
Current wording
(c)$49.5 million (90%) of ABR from properties in Canada is denominated in U.S. dollars, with the balance denominated in Canadian dollars.
Previous wording
(d)Includes assets in Belgium, Hungary, Norway, Mauritius, Slovakia, Portugal, the Czech Republic, Austria, Finland, Sweden, Latvia, Japan, and Estonia.
Current wording
(e)Includes assets in Belgium, Hungary, Norway, Mauritius, Slovakia, Portugal, the Czech Republic, Austria, Sweden, Latvia, Japan, Finland, and Estonia.
Previous wording
(f)Includes ABR from tenants within the following property types: education facility, specialty, office, self-storage (net lease), laboratory, hotel (net lease), research and development, and land.
Current wording
(g)Includes ABR from tenants within the following property types: education facility, self-storage (net lease), specialty, laboratory, hotel (net lease), office, research and development, and land.
Previous wording
“Existing net-leased properties” are those that we acquired or placed into service prior to January 1, 2023 and that were not sold, held for sale, derecognized, or reclassified to operating properties during the periods presented. For the periods presented, there were 1,101 existing net-leased properties.
Current wording
“Existing net-leased properties” are those that we acquired or placed into service prior to January 1, 2023 and that were not sold, held for sale, derecognized, or reclassified to operating properties during the periods presented. For the periods presented, there were 1,109 existing net-leased properties, including 12 self-storage properties that converted from operating properties to net leases during the third quarter of 2024 (Note 4, Note 7).
Previous wording
For the three months ended June 30, 2024 as compared to the same period in 2023, lease revenues from existing net-leased properties decreased due to the following items (in millions):
Current wording
For the three and nine months ended September 30, 2024 as compared to the same periods in 2023, lease revenues from existing net-leased properties increased due to the following items (in millions):
Previous wording
(b)During the first quarter of 2024, we entered into a lease restructuring with our tenant Hellweg, which included abated rent from January 1, 2024 to March 31, 2024 and the reclassification of 13 properties leased to this tenant from direct financing leases to operating leases (Note 5).
Current wording
(a)During the first quarter of 2024, we entered into a lease restructuring with our tenant Hellweg, which included (i) abated rent from January 1, 2024 to March 31, 2024, (ii) a reduction in annual base rent, and (iii) the reclassification of 13 properties leased to this tenant from direct financing leases to operating leases (Note 5).
Previous wording
(a)Excludes fixed minimum rent increases, which are reflected as straight-line rent adjustments within lease revenues.
Current wording
(b)Excludes fixed minimum rent increases, which are reflected as straight-line rent adjustments within lease revenues.
Previous wording
“Recently acquired net-leased properties” are those that we acquired or placed into service subsequent to December 31, 2022 and that were not sold or held for sale during the periods presented. Since January 1, 2023, we acquired 22 investments (comprised of 95 properties).
Current wording
“Recently acquired net-leased properties” are those that we acquired or placed into service subsequent to December 31, 2022 and that were not sold or held for sale during the periods presented. Since January 1, 2023, we acquired 29 investments (comprised of 227 properties).
Previous wording
•164 net-leased properties disposed of during the six months ended June 30, 2024;
Current wording
•171 net-leased properties disposed of during the nine months ended September 30, 2024;
Previous wording
•one net-leased property classified as held for sale at June 30, 2024, which was sold in July 2024 (Note 4, Note 15);
Current wording
•one net-leased property classified as held for sale at September 30, 2024 (Note 4);
Previous wording
For the three and six months ended June 30, 2024 as compared to the same periods in 2023, income from finance leases and loans receivable decreased due to the following items (in millions):
Current wording
For the three and nine months ended September 30, 2024 as compared to the same periods in 2023, income from finance leases and loans receivable decreased due to the following items (in millions):
Previous wording
“Existing operating properties” are those that we acquired or placed into service prior to January 1, 2023 and that were not sold or held for sale during the periods presented. For the periods presented, we recorded operating property revenues from 78 existing operating properties, comprised of 75 self-storage operating properties (which excludes nine self-storage properties accounted for under the equity method), two student housing operating properties, and one hotel operating property.
Current wording
“Existing operating properties” are those that we acquired or placed into service prior to January 1, 2023 and that were not sold, held for sale, or reclassified to net-leased properties during the periods presented. For the periods presented, we recorded operating property revenues from 75 existing operating properties, comprised of 72 self-storage operating properties, two student housing operating properties, and one hotel operating property.
Previous wording
“Operating properties recently reclassified from net-leased properties or recently acquired” include (i) three net-leased hotel properties that converted to operating properties in the first quarter of 2023 (after which we began recognizing operating property revenues and expenses from these properties) and (ii) five self-storage operating properties acquired during 2023.
Current wording
“Operating properties recently reclassified from net-leased properties or recently acquired” include (i) three net-leased hotel properties that converted to operating properties in the first quarter of 2023 (after which we began recognizing operating property revenues and expenses from these properties), (ii) five self-storage operating properties acquired during 2023, and (iii) one self-storage operating property acquired during the third quarter of 2024.
Previous wording
“Operating properties sold, held for sale, or derecognized” are comprised of (i) nine hotel operating properties disposed of during 2023 and 2024 and (ii) a parking garage attached to a net-leased property that was derecognized in connection with the Spin-Off.
Current wording
“Operating properties sold, held for sale, derecognized, or reclassified to net-leased properties” are comprised of (i) eight hotel operating properties disposed of during 2023 and 2024, (ii) a parking garage attached to a net-leased property that was derecognized in connection with the Spin-Off, and (iii) three self-storage operating properties that were reclassified to net-leased properties during the third quarter of 2024.
Previous wording
For the three and six months ended June 30, 2024 as compared to the same periods in 2023, depreciation and amortization expense decreased primarily due to the impact of the Spin-Off, the Office Sale Program, and other dispositions, partially offset by the impact of property acquisition activity and certain tenant vacancies (amortization of intangible assets for such properties was accelerated upon vacancy).
Current wording
For the three and nine months ended September 30, 2024 as compared to the same periods in 2023, depreciation and amortization expense decreased primarily due to the impact of the Spin-Off, the Office Sale Program, and other dispositions, partially offset by the impact of property acquisition activity and certain tenant vacancies (amortization of intangible assets for such properties was accelerated upon vacancy).
Previous wording
For the three and six months ended June 30, 2024 as compared to the same periods in 2023, property expenses, excluding reimbursable tenant costs, increased by $8.6 million and $8.0 million, respectively, primarily due to the release of real estate taxes accrued for a cash basis tenant during the prior year periods. The tenant was previously not current on real estate taxes due, and repaid the outstanding amount in the second quarter of 2023.
Current wording
For the nine months ended September 30, 2024 as compared to the same period in 2023, property expenses, excluding reimbursable tenant costs, increased by $5.9 million primarily due to the release of real estate taxes accrued for a cash basis tenant during the prior year period. The tenant was previously not current on real estate taxes due, and repaid the outstanding amount in the second quarter of 2023. This increase was partially offset by the impact of the Spin-Off, the Office Sale Program, and other dispositions.
Previous wording
For the six months ended June 30, 2024, merger and other expenses are primarily comprised of the write-off of a value added tax receivable that was previously recorded in connection with an international investment.
Current wording
For the nine months ended September 30, 2024, merger and other expenses are primarily comprised of the write-off of a value added tax receivable that was previously recorded in connection with an international investment.
Previous wording
Other gains and (losses) primarily consists of gains and losses on (i) foreign currency exchange rate movements, (ii) extinguishment of debt, and (iii) the mark-to-market fair value of equity securities, as well as changes in the allowance for credit losses on finance receivables. The timing and amount of such gains or losses cannot always be estimated and are subject to fluctuation. Certain of our foreign currency-denominated unsecured debt instruments were designated as net investment hedges during the three andsix months ended June 30, 2024 and 2023. Therefore, no gains and losses on foreign currency exchange rate movements were recognized on the remeasurement of such instruments during those periods (Note 9).
Current wording
Other gains and (losses) primarily consists of gains and losses on (i) foreign currency exchange rate movements, (ii) extinguishment of debt, and (iii) the mark-to-market fair value of equity securities, as well as changes in the allowance for credit losses on finance receivables. The timing and amount of such gains or losses cannot always be estimated and are subject to fluctuation. Certain of our foreign currency-denominated unsecured debt instruments were designated as net investment hedges during the three andnine months ended September 30, 2024 and 2023. Therefore, no gains and losses on foreign currency exchange rate movements were recognized on the remeasurement of such instruments during those periods (Note 9).
Previous wording
(b)We acquired a secured loan receivable with a fair value of $13.3 million in our merger with a former affiliate, Corporate Property Associates 17 – Global Incorporated, in October 2018, for which the outstanding principal of $24.0 million was fully repaid to us in March 2024 (Note 5). Therefore, we recorded a $10.7 million gain on repayment of this secured loan receivable during the six months ended June 30, 2024.
Current wording
(b)We acquired a secured loan receivable with a fair value of $13.3 million in our merger with a former affiliate, Corporate Property Associates 17 – Global Incorporated, in October 2018, for which the outstanding principal of $24.0 million was fully repaid to us in March 2024 (Note 5). Therefore, we recorded a $10.7 million gain on repayment of this secured loan receivable during the nine months ended September 30, 2024.
Previous wording
For the three and six months ended June 30, 2024 as compared to the same periods in 2023, interest expense decreased by $10.2 million and $8.7 million, respectively, primarily due to (i) the reduction of our mortgage debt outstanding by prepaying or repaying at or close to maturity a total of $486.7 million of non-recourse mortgage loans with a weighted-average interest rate of 4.9% since January 1, 2023 (Note 10), (ii) the derecognition of non-recourse mortgage loans with an aggregate carrying value totaling $164.7 million in connection with the Spin-Off on November 1, 2023, (iii) lower outstanding balances on our Unsecured Revolving Credit Facility, and (iv) the repayment of our $500 million of 4.6% Senior Notes on April 1, 2024, partially offset by our Unsecured Term Loan due 2026 that we entered into in April 2023 (Note 10).
Current wording
For the three and nine months ended September 30, 2024 as compared to the same periods in 2023, interest expense decreased by $4.4 million and $13.2 million, respectively, primarily due to (i) lower outstanding balances on our Unsecured Revolving Credit Facility, (ii) the reduction of our mortgage debt outstanding by prepaying or repaying at or close to maturity a total of $544.6 million of non-recourse mortgage loans with a weighted-average interest rate of 4.7% since January 1, 2023 (Note 10), and (iii) the derecognition of non-recourse mortgage loans with an aggregate carrying value totaling $164.7 million in connection with the Spin-Off on November 1, 2023, partially offset by (i) higher outstanding balances and interest rates on our Senior Unsecured Notes and (ii) our Unsecured Term Loan due 2026 that we entered into in April 2023 (Note 10).
Previous wording
Gain on sale of real estate, net, consists of gains and losses on the sale of properties that were (i) disposed of or (ii) subject to the exercise of a purchase option during the reporting period, as more fully described in Note 4, Note 5 and Note 14.
Current wording
Gain on sale of real estate, net, consists of gains and losses on the sale of properties that were (i) disposed of, (ii) subject to the exercise of a purchase option, (iii) subject to a purchase agreement resulting in a lease modification during the reporting period, or (iv) included in assets held for sale and subject to a revised estimated purchase price, during the reporting period, as more fully described in Note 4, Note 5 and Note 14.
Previous wording
(a)Increases for the three and six months ended June 30, 2024 as compared to the same periods in 2023 are due to higher cash deposit balances as a result of proceeds from issuances of Senior Unsecured Notes (Note 10), the Spin-Off, the Office Sale Program, and other dispositions.
Current wording
(a)Increases for the three and nine months ended September 30, 2024 as compared to the same periods in 2023 are due to higher cash deposit balances as a result of proceeds from issuances of Senior Unsecured Notes (Note 10), the Spin-Off, the Office Sale Program, and other dispositions.
Previous wording
(b)Decrease is due to higher interest expense as a result of refinancing the non-recourse mortgage loan encumbering the properties during the second quarter of 2024.
Current wording
(c)Decrease is due to higher interest expense as a result of refinancing the non-recourse mortgage loan encumbering the properties during the second quarter of 2024.
Previous wording
For the three and six months ended June 30, 2024 as compared to the same periods in 2023, provision for income taxes decreased by $3.9 million and $10.4 million, primarily due to (i) the impact of international office property dispositions and (ii) the release of deferred tax assets in connection with the tax restructuring of certain international properties during the six months ended June 30, 2023.
Current wording
For the nine months ended September 30, 2024 as compared to the same period in 2023, provision for income taxes decreased by $6.4 million, primarily due to (i) the impact of international lease restructurings during the current year period, (ii) the impact of international office property dispositions, and (iii) the release of deferred tax assets in connection with the tax restructuring of certain international properties during the prior year period, partially offset by a deferred tax benefit recognized during the prior year period related to an impairment charge recorded on a foreign property.
Previous wording
Operating Activities— Net cash provided by operating activities increased by $726.3 million during the six months ended June 30, 2024 as compared to the same period in 2023, primarily due to $807.1 million of proceeds received from the sales of net investments in sales-types leases during the current year period (Note 5), partially offset by the impact of the Spin-Off and Office Sale Program (Note 1).
Current wording
Operating Activities— Net cash provided by operating activities increased by $724.1 million during the nine months ended September 30, 2024 as compared to the same period in 2023, primarily due to $807.0 million of proceeds received from the sales of net investments in sales-types leases during the current year period (Note 5), partially offset by the impact of the Spin-Off and Office Sale Program (Note 1).
Previous wording
(a)Aggregate debt balance includes unamortized discount, net, totaling $35.6 million and $31.8 million as of June 30, 2024 and December 31, 2023, respectively, and unamortized deferred financing costs totaling $28.5 million and $21.5 million as of June 30, 2024 and December 31, 2023, respectively.
Current wording
(a)Aggregate debt balance includes unamortized discount, net, totaling $35.7 million and $31.8 million as of September 30, 2024 and December 31, 2023, respectively, and unamortized deferred financing costs totaling $28.0 million and $21.5 million as of September 30, 2024 and December 31, 2023, respectively.
Previous wording
(b)Includes non-recourse mortgages subject to variable-to-fixed interest rate swaps totaling $68.4 million and $45.0 million as of June 30, 2024 and December 31, 2023, respectively.
Current wording
(b)Includes non-recourse mortgages subject to variable-to-fixed interest rate swaps totaling $50.6 million and $45.0 million as of September 30, 2024 and December 31, 2023, respectively.
Showing the first 40 of 52 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
•In July 2024, we repaid our €500 million of 2.25% Senior Notes due 2024 at maturity (Note 10).
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
For the six months ended June 30, 2024 as compared to the same period in 2023, lease revenues from existing net-leased properties decreased due to the following items (in millions):