WP CAREY INC. Management’s discussion and analysis of financial condition and results of operations. (Form 10-K)

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Management's Discussion and Analysis of Financial Condition and Results of
Operations is intended to assist in understanding our financial statements and
the reasons for changes in certain key components of our financial statements
from period to period. This item also provides our perspective on our financial
position and liquidity, as well as certain other factors that may affect our
future results. The discussion also breaks down the financial results of our
business by segment to provide a better understanding of how these segments and
their results affect our financial condition and results of operations.

The following discussion should be read in conjunction with our consolidated
financial statements in   Item 8   of this Report and the matters described
under   Item 1A. Risk Factors  . Please see our Annual Report on Form 10-K for
the year ended December 31, 2020 for discussion of our financial condition and
results of operations for the year ended December 31, 2019. Refer to   Item 1.
Business   for a description of our business.

Significant developments

COVID-19[feminine

We continue to actively engage in discussions with our tenants regarding the
impact of the COVID-19 pandemic on their business operations, liquidity, and
financial position. Through the date of this Report, we have received from
tenants over 99.8% of contractual base rent due during the fourth quarter of
2021 (based on contractual minimum annualized base rent ("ABR") as of
September 30, 2021). Given the ongoing uncertainty surrounding the impact of the
COVID-19 pandemic, we are unable to predict its effect on our tenants' continued
ability to pay rent. Therefore, information provided in this Report regarding
rent collections should not serve as an indication of expected future rent
collections.

Faits saillants financiers

Au cours de l’année terminée 31 décembre 2021nous avons effectué ce qui suit (tel que décrit plus en détail dans les états financiers consolidés) :

Immobilier

Investissements

•We acquired 28 investments totaling $1.5 billion (  Note 4  ,   Note 5  ).
•We completed four construction projects at a cost totaling $88.2 million
(  Note 4  ).
•We entered into an agreement to fund a construction loan of approximately
$224.9 million for a retail complex in Las Vegas, Nevada. Through December 31,
2021, we have funded $103.7 million (  Note 7  ).
•We committed to fund six build-to-suit or expansion projects totaling $63.5
million (based on the exchange rate of the euro at December 31, 2021, as
applicable). We currently expect to complete the projects in 2022 and 2023
(  Note 4  ).

Dispositions

• Dans le cadre de notre programme actif de recyclage du capital, nous avons vendu 24 propriétés pour un produit total, net des frais de vente, de 163,6 millions de dollars (Remarque 15).

                                                           W. P. Carey 2021 

10-K – 22

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Opérations de financement et marchés de capitaux

•On February 25, 2021, we completed an underwritten public offering of $425.0
million of 2.250% Senior Notes due 2033, at a price of 98.722% of par value.
These 2.250% Senior Notes due 2033 have a 12.1-year term and are scheduled to
mature on April 1, 2033 (  Note 10  ).
•On March 8, 2021, we completed an underwritten public offering of €525.0
million of 0.950% Senior Notes due 2030, at a price of 99.335% of par value,
issued by our wholly owned finance subsidiary, WPC Eurobond B.V., and fully and
unconditionally guaranteed by us. These 0.950% Senior Notes due 2030 have a
9.2-year term and are scheduled to mature on June 1, 2030. We used the net
proceeds from this offering to redeem the €500.0 million of 2.0% Senior Notes
due 2023, for which we paid a "make-whole" amount of $26.2 million (based on the
exchange rate of the euro as of the date of redemption) (  Note 10  ).
•On October 15, 2021, we completed an underwritten public offering of $350.0
million of 2.450% Senior Notes due 2032, at a price of 99.048% of par value, in
our inaugural green bond offering. These 2.450% Senior Notes due 2032 have a
10.3-year term and are scheduled to mature on February 1, 2032. We intend to
fully allocate an amount equal to the net proceeds from this offering to the
financing and refinancing, in whole or in part, of one or more recently
completed or future eligible green projects (as defined in the prospectus
supplement for the offering) (  Note 10  ).
•On June 7, 2021, we offered 6,037,500 shares of common stock through our June
2021 Equity Forwards, for gross proceeds of approximately $454.6 million. In
addition, on August 9, 2021, we offered 5,175,000 shares of common stock through
our August 2021 Equity Forwards, for gross proceeds of approximately $403.7
million. During the year ended December 31, 2021, we settled portions of our
Equity Forwards by delivering 9,798,209 shares of common stock to certain
forward purchasers for net proceeds of $697.0 million. As of December 31, 2021,
3,925,000 shares remained outstanding under our Equity Forwards (  Note 12  ).
•We issued 4,690,073 shares of our common stock under our ATM Program at a
weighted-average price of $73.42 per share, for net proceeds of $340.0 million
(  Note 12  ).
•We reduced our mortgage debt outstanding by prepaying or repaying at or close
to maturity a total of $777.8 million of non-recourse mortgage loans (including
prepayment penalties totaling $45.2 million) with a weighted-average interest
rate of 4.8% (  Note 10  ).

Investment Management

Assets Under Management

•As of December 31, 2021, we managed total assets of approximately $2.7 billion
on behalf of CPA:18 - Global and CESH. We expect that the vast majority of our
Investment Management earnings going forward will be generated from asset
management fees and our ownership interests in CPA:18 - Global and CESH.

Dividendes aux actionnaires

Nous avons déclaré des dividendes en espèces totalisant $4.205 par action, composé de quatre dividendes trimestriels par action de $1.048, $1.050, $1.052et 1,055 $.

                                                           W. P. Carey 2021 

10-K – 23

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Consolidated Results

(in thousands, except shares)
                                                                          Years Ended December 31,
                                                                         2021                  2020
Revenues from Real Estate                                          $   1,312,126          $  1,177,997
Revenues from Investment Management                                       19,398                31,322
Total revenues                                                         1,331,524             1,209,319

Net income from Real Estate attributable to W. P. Carey                  384,766               459,512

Bénéfice (perte) net(te) de la gestion des investissements attribuable à WP Carey

                                                                     25,222                (4,153)
Net income attributable to W. P. Carey                                   409,988               455,359

Dividends declared                                                       781,626               732,020

Net cash provided by operating activities                                926,479               801,538
Net cash used in investing activities                                 (1,566,727)             (539,932)
Net cash provided by (used in) financing activities                      557,048              (210,713)

Mesures financières supplémentaires (a) : Fonds de fonctionnement rajustés attribuables à WP Carey (AFFO) – Immobilier

                                                            896,139               804,175

Fonds d’exploitation rajustés attribuables à WP Carey (AFFO) – Gestion des investissements

                                                   25,352                24,911

Fonds d’exploitation rajustés attribuables à WP Carey (AFFO) 921 491

               829,086

Diluted weighted-average shares outstanding                          183,127,098           174,839,428


__________

(a)We consider Adjusted funds from operations ("AFFO"), a supplemental measure
that is not defined by U.S. generally accepted accounting principles ("GAAP") (a
"non-GAAP measure"), to be an important measure in the evaluation of our
operating performance. See   Supplemental Financial Measures   below for our
definition of this non-GAAP measure and a reconciliation to its most directly
comparable GAAP measure.

Revenues

Real Estate revenue increased in 2021 as compared to 2020, primarily due to
higher lease revenues (substantially as a result of property acquisition
activity, the strengthening euro and British pound sterling, and the positive
impact on rent collections as businesses recovered from the effects of the
COVID-19 pandemic, partially offset by property dispositions) and higher lease
termination and other income (  Note 4  ). Investment Management revenue
decreased in 2021 as compared to 2020, primarily due to lower asset management
revenue and reimbursable costs earned from the Managed Programs following the
termination of our advisory agreements in connection with the closing of the CWI
1 and CWI 2 Merger on April 13, 2020 (  Note 3  ).

Résultat net attribuable à WP Carey

Net income from Real Estate attributable to W. P. Carey decreased in 2021 as
compared to 2020, primarily due to a higher loss on extinguishment of debt
(  Note 10  ), a lower aggregate gain on sale of real estate (  Note 15  ), and
a deferred tax benefit as a result of the release of a deferred tax liability
relating to our investment in shares of Lineage Logistics during the prior year
(  Note 14  ), partially offset by the impact of real estate acquisitions, the
positive impact on rent collections as businesses recovered from the effects of
the COVID-19 pandemic, and lower interest expense. In addition, we recognized
non-cash unrealized gains on our investment in shares of Lineage Logistics
during both the current and prior year (  Note 8  ). Net income from Investment
Management attributable to W. P. Carey increased in 2021 as compared to 2020,
primarily due to other-than temporary impairment charges on our equity method
investments in CWI 1 and CWI 2 during the prior year period (  Note 8  ),
partially offset by a non-cash net gain recognized on the redemption of our
special general partner interests in CWI 1 and CWI 2 in connection with the WLT
management internalization in April 2020 (  Note 3  ), as well as the cessation
of revenues previously earned from CWI 1 and CWI 2.

                                                           W. P. Carey 2021 

10-K – 24

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AFFO

AFFO increased in 2021 as compared to 2020, primarily due to higher lease
revenues from net investment activity, lower interest expense, and the positive
impact on rent collections as businesses recovered from the effects of the
COVID-19 pandemic, partially offset by lower Investment Management revenues due
to the WLT management internalization in April 2020 (  Note 3  ).

Aperçu du portefeuille

Our portfolio is comprised of operationally-critical, commercial real estate
assets net leased to tenants located primarily in the United States and Northern
and Western Europe. We invest in high-quality single tenant industrial,
warehouse, office, retail, and self-storage (net lease) properties subject to
long-term leases with built-in rent escalators. Portfolio information is
provided on a pro rata basis, unless otherwise noted below, to better illustrate
the economic impact of our various net-leased jointly owned investments. See
Terms and Definitions below for a description of pro rata amounts.

Portfolio Summary
                                                                            As of December 31,
                                                                        2021                  2020
ABR (in thousands)                                                 $  1,247,764          $  1,183,217
Number of net-leased properties                                           1,304                 1,243
Number of operating properties (a)                                           20                    20
Number of tenants (net-leased properties)                                   352                   350
Total square footage (net-leased properties, in thousands)              155,674               144,259
Occupancy (net-leased properties)                                          98.5  %               98.5  %
Weighted-average lease term (net-leased properties, in years)              10.8                  10.6
Number of countries (b)                                                      24                    25
Total assets (in thousands)                                        $ 15,480,630          $ 14,707,636
Net investments in real estate (in thousands)                        13,037,369            12,386,572


                                                                            Years Ended December 31,
                                                                            2021                     2020
Acquisition volume (in millions) (c)                              $      1,627.9                 $    661.4
Construction projects completed (in millions)                               88.2                      171.2
Average U.S. dollar/euro exchange rate                                    1.1830                     1.1410
Average U.S. dollar/British pound sterling exchange rate                  1.3755                     1.2834



__________
(a)At both December 31, 2021 and 2020, operating properties consisted of 19
self-storage properties (of which we consolidated ten, with an average occupancy
of 95.3% at December 31, 2021), and one hotel property, with an average
occupancy of 45.2% for the year ended December 31, 2021 (due to the adverse
effect of the COVID-19 pandemic).
(b)We sold our only remaining investment in Belgium during 2021.
(c)Amount for the year ended December 31, 2021 includes $217.0 million of
sale-leasebacks classified as loans receivable (  Note 5  ). Amount for the year
ended December 31, 2021 includes $103.7 million of funding for a construction
loan (  Note 7  ).

                                                           W. P. Carey 2021 10-K - 25

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Portefeuille loué net

Les tableaux ci-dessous représentent des informations sur notre portefeuille net loué à
31 décembre 2021 au prorata et, par conséquent, exclure tous les immeubles d’exploitation. Voir Termes et définitions ci-dessous pour une description des montants au prorata et ABR.

Top Ten Tenants by ABR
(dollars in thousands)
                                                                                                                                                           Weighted-Average Lease
Tenant/Lease Guarantor                          Description                    Number of Properties             ABR                ABR Percent                  Term (Years)
U-Haul Moving Partners Inc.          Net lease self-storage properties
and Mercury Partners, LP             in the U.S.                                          78                $  38,751                       3.1  %                      2.3
                                     Government office properties in
State of Andalucía (a)               Spain                                                70                   29,490                       2.4  %                     13.0
Hellweg Die Profi-Baumärkte          Do-it-yourself retail properties
GmbH & Co. KG (a)                    in Germany                                           35                   28,388                       2.3  %                     15.2
Metro Cash & Carry Italia            Business-to-business wholesale
S.p.A. (a)                           stores in Italy and Germany                          20                   28,087                       2.2  %                      6.8
                                     Automotive dealerships in the
Pendragon PLC (a)                    United Kingdom                                       69                   23,852                       1.9  %                      8.4
                                     Do-it-yourself retail properties
OBI Group (a)                        in Poland                                            26                   22,635                       1.8  %                      8.4
                                     Net lease hotel properties in the
Marriott Corporation                 U.S.                                                 18                   21,100                       1.7  %                      2.0
                                     Net lease self-storage properties
Extra Space Storage, Inc.            in the U.S.                                          27                   20,688                       1.6  %                     22.3
                                     Distribution facilities in the
Advance Auto Parts, Inc.             U.S.                                                 29                   19,851                       1.6  %                     11.1

Nord Anglia Education, Inc. Écoles privées de la maternelle à la 12e année nous

               3                   19,473                       1.6  %                     21.7
Total                                                                                    375                $ 252,315                      20.2  %                     10.4


__________
(a)ABR amounts are subject to fluctuations in foreign currency exchange rates.

                                                           W. P. Carey 2021 10-K - 26

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Portfolio Diversification by Geography
(in thousands, except percentages)
                                                                                                                                  Square Footage
Region                                                  ABR                  ABR Percent              Square Footage (a)              Percent
United States
South
Texas                                              $   103,805                         8.3  %               11,869                          7.6  %
Florida                                                 51,231                         4.1  %                4,460                          2.9  %
Georgia                                                 23,875                         1.9  %                3,512                          2.3  %
Tennessee                                               22,057                         1.8  %                3,291                          2.1  %
Alabama                                                 18,456                         1.5  %                3,085                          2.0  %
Other (b)                                               15,675                         1.2  %                2,356                          1.5  %
Total South                                            235,099                        18.8  %               28,573                         18.4  %
Midwest
Illinois                                                59,840                         4.8  %                8,328                          5.3  %
Minnesota                                               32,138                         2.6  %                3,225                          2.1  %
Indiana                                                 26,940                         2.1  %                4,734                          3.0  %
Ohio                                                    18,306                         1.5  %                3,921                          2.5  %
Wisconsin                                               16,086                         1.3  %                3,245                          2.1  %
Michigan                                                15,076                         1.2  %                2,599                          1.7  %
Other (b)                                               32,401                         2.6  %                5,073                          3.3  %
Total Midwest                                          200,787                        16.1  %               31,125                         20.0  %
East
North Carolina                                          35,813                         2.9  %                8,098                          5.2  %
Pennsylvania                                            30,790                         2.4  %                3,673                          2.4  %
New Jersey                                              22,809                         1.8  %                1,235                          0.8  %
Massachusetts                                           22,187                         1.8  %                1,407                          0.9  %
New York                                                17,630                         1.4  %                2,221                          1.4  %
South Carolina                                          14,840                         1.2  %                4,087                          2.6  %
Other (b)                                               47,109                         3.8  %                8,009                          5.1  %
Total East                                             191,178                        15.3  %               28,730                         18.4  %
West
California                                              70,052                         5.6  %                6,537                          4.2  %
Arizona                                                 29,784                         2.4  %                3,365                          2.1  %
Other (b)                                               60,892                         4.9  %                6,333                          4.1  %
Total West                                             160,728                        12.9  %               16,235                         10.4  %
United States Total                                    787,792                        63.1  %              104,663                         67.2  %
International
United Kingdom                                          61,843                         5.0  %                5,099                          3.3  %
Germany                                                 61,465                         4.9  %                6,440                          4.1  %
Poland                                                  58,799                         4.7  %                7,959                          5.1  %
Spain                                                   56,099                         4.5  %                4,708                          3.0  %
The Netherlands                                         56,044                         4.5  %                6,948                          4.5  %
Italy                                                   26,364                         2.1  %                2,386                          1.5  %
France                                                  20,328                         1.6  %                1,685                          1.1  %
Denmark                                                 17,724                         1.4  %                2,559                          1.7  %
Croatia                                                 16,901                         1.4  %                1,726                          1.1  %
Canada                                                  14,084                         1.1  %                2,213                          1.4  %
Other (c)                                               70,321                         5.7  %                9,288                          6.0  %
International Total                                    459,972                        36.9  %               51,011                         32.8  %
Total                                              $ 1,247,764                       100.0  %              155,674                        100.0  %


                                                           W. P. Carey 2021 10-K - 27

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Portfolio Diversification by Property Type
(in thousands, except percentages)
                                                                                                                                      Square Footage
Property Type                                               ABR                  ABR Percent              Square Footage (a)              Percent
Industrial                                             $   322,284                        25.8  %               54,221                         34.8  %
Warehouse                                                  297,942                        23.9  %               54,793                         35.2  %
Office                                                     243,741                        19.5  %               16,151                         10.4  %
Retail (d)                                                 220,016                        17.6  %               19,139                         12.3  %
Self Storage (net lease)                                    59,438                         4.8  %                5,810                          3.7  %
Other (e)                                                  104,343                         8.4  %                5,560                          3.6  %
Total                                                  $ 1,247,764                       100.0  %              155,674                        100.0  %


__________
(a)Includes square footage for any vacant properties.
(b)Other properties within South include assets in Louisiana, Arkansas,
Oklahoma, and Mississippi. Other properties within Midwest include assets in
Missouri, Kansas, Nebraska, Iowa, North Dakota, and South Dakota. Other
properties within East include assets in Virginia, Kentucky, Maryland,
Connecticut, West Virginia, New Hampshire, and Maine. Other properties within
West include assets in Oregon, Colorado, Utah, Washington, Nevada, Hawaii, New
Mexico, Idaho, Wyoming, Montana, and Alaska.
(c)Includes assets in Lithuania, Finland, Norway, Mexico, Hungary, Portugal, the
Czech Republic, Austria, Sweden, Slovakia, Japan, Latvia, and Estonia.
(d)Includes automotive dealerships.
(e)Includes ABR from tenants with the following property types: education
facility, hotel (net lease), laboratory, fitness facility, theater, student
housing (net lease), restaurant, and land.

                                                           W. P. Carey 2021 

10-K – 28

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Portfolio Diversification by Tenant Industry
(in thousands, except percentages)
                                                                                                                                          Square Footage
Industry Type                                                     ABR                  ABR Percent               Square Footage               Percent
Retail Stores (a)                                            $   272,627                        21.9  %              34,040                        21.9  %
Consumer Services                                                102,202                         8.2  %               7,850                         5.0  %
Automotive                                                        81,158                         6.5  %              12,310                         7.9  %
Beverage and Food                                                 78,613                         6.3  %              10,182                         6.5  %
Grocery                                                           72,546                         5.8  %               7,714                         5.0  %
Cargo Transportation                                              63,845                         5.1  %               9,491                         6.1  %
Healthcare and Pharmaceuticals                                    60,465                         4.8  %               5,372                         3.5  %
Construction and Building                                         50,279                         4.0  %               9,005                         5.8  %
Business Services                                                 47,045                         3.8  %               4,018                         2.6  %
Capital Equipment                                                 44,766                         3.6  %               7,387                         4.7  %
Durable Consumer Goods                                            44,001                         3.5  %               9,951                         6.4  %
Hotel and Leisure                                                 41,141                         3.3  %               2,214                         1.4  %
Sovereign and Public Finance                                      39,327                         3.2  %               3,241                         2.1  %
Containers, Packaging, and Glass                                  38,627                         3.1  %               6,538                         4.2  %
High Tech Industries                                              31,197                         2.5  %               3,315                         2.1  %
Insurance                                                         25,764                         2.1  %               1,749                         1.1  %
Banking                                                           19,935                         1.6  %               1,247                         0.8  %
Metals                                                            16,203                         1.3  %               3,119                         2.0  %
Non-Durable Consumer Goods                                        15,696                         1.3  %               5,250                         3.4  %
Aerospace and Defense                                             15,459                         1.2  %               1,357                         0.9  %
Telecommunications                                                15,274                         1.2  %               1,479                         0.9  %
Chemicals, Plastics, and Rubber                                   14,282                         1.1  %               1,853                         1.2 

%

Media: Broadcasting and Subscription                              13,120                         1.1  %                 784                         0.5  %
Wholesale                                                         12,758                         1.0  %               2,005                         1.3  %
Other (b)                                                         31,434                         2.5  %               4,203                         2.7  %
Total                                                        $ 1,247,764                       100.0  %             155,674                       100.0  %


__________
(a)Includes automotive dealerships.
(b)Includes ABR from tenants in the following industries: media: advertising,
printing, and publishing, oil and gas, environmental industries, consumer
transportation, forest products and paper, real estate, and electricity. Also
includes square footage for vacant properties.

                                                           W. P. Carey 2021 

10-K – 29

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Lease Expirations
(dollars and square footage in thousands)
                                                       Number of
Year of Lease               Number of Leases         Tenants with                                                                                    Square Footage
Expiration (a)                  Expiring            Leases Expiring            ABR                 ABR Percent              Square Footage              Percent
2022                                  25                    25            $    29,669                        2.4  %              1,982                        1.3  %
2023                                  31                    28                 46,810                        3.8  %              5,405                        3.5  %
2024 (b)                              45                    39                 96,501                        7.7  %             12,403                        8.0  %
2025                                  60                    29                 63,961                        5.1  %              7,417                        4.8  %
2026                                  40                    29                 57,615                        4.6  %              8,219                        5.3  %
2027                                  56                    32                 83,964                        6.7  %              8,847                        5.7  %
2028                                  40                    22                 60,495                        4.8  %              4,568                        2.9  %
2029                                  50                    23                 55,310                        4.4  %              6,702                        4.3  %
2030                                  27                    23                 65,876                        5.3  %              5,642                        3.6  %
2031                                  66                    16                 73,930                        5.9  %              8,642                        5.5  %
2032                                  38                    18                 53,114                        4.3  %              7,098                        4.6  %
2033                                  28                    22                 77,386                        6.2  %             10,159                        6.5  %
2034                                  47                    15                 74,503                        6.0  %              7,765                        5.0  %
2035                                  14                    14                 26,944                        2.2  %              4,906                        3.1  %
Thereafter (>2035)                   223                    97                381,686                       30.6  %             53,632                       34.4  %
Vacant                                 -                     -                      -                          -  %              2,287                        1.5  %
Total                                790                                  $ 1,247,764                      100.0  %            155,674                      100.0  %


__________
(a)Assumes tenants do not exercise any renewal options or purchase options.
(b)Includes ABR of $38.8 million from a tenant (U-Haul Moving Partners, Inc. and
Mercury Partners, LP) that holds an option to repurchase the 78 properties it is
leasing in April 2024. There can be no assurance that such repurchase will be
completed.

Terms and Definitions

Pro Rata Metrics -The portfolio information above contains certain metrics
prepared on a pro rata basis. We refer to these metrics as pro rata metrics. We
have a number of investments, usually with our affiliates, in which our economic
ownership is less than 100%. On a full consolidation basis, we report 100% of
the assets, liabilities, revenues, and expenses of those investments that are
deemed to be under our control or for which we are deemed to be the primary
beneficiary, even if our ownership is less than 100%. Also, for all other
jointly owned investments, which we do not control, we report our net investment
and our net income or loss from that investment. On a pro rata basis, we present
our proportionate share, based on our economic ownership of these jointly owned
investments, of the portfolio metrics of those investments. Multiplying each of
our jointly owned investments' financial statement line items by our percentage
ownership and adding or subtracting those amounts from our totals, as
applicable, may not accurately depict the legal and economic implications of
holding an ownership interest of less than 100% in our jointly owned
investments.

ABR - ABR represents contractual minimum annualized base rent for our net-leased
properties and reflects exchange rates as of December 31, 2021. If there is a
rent abatement, we annualize the first monthly contractual base rent following
the free rent period. ABR is not applicable to operating properties.

                                                           W. P. Carey 2021 

10-K – 30

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Résultats d’exploitation

We operate in two reportable segments: Real Estate and Investment Management. We
evaluate our results of operations with a primary focus on increasing and
enhancing the value, quality, and number of properties in our Real Estate
segment. We focus our efforts on accretive investing and improving portfolio
quality through re-leasing efforts, including negotiation of lease renewals, or
selectively selling assets in order to increase value in our real estate
portfolio. Through our Investment Management segment, we expect to continue to
earn fees and other income from the management of the portfolios of the
remaining Managed Programs until those programs reach the end of their
respective life cycles. Refer to   Note 1    6   for tables presenting the
comparative results of our Real Estate and Investment Management segments.

Immobilier

Revenus

Le tableau suivant présente les revenus de notre secteur Immobilier (en milliers) :

Exercices terminés le 31 décembre,

                                                             2021                 2020               Change
Real Estate Revenues
Lease revenues from:
Existing net-leased properties                          $ 1,062,470          $ 1,034,306          $  28,164
Recently acquired net-leased properties                     108,858               22,922             85,936
Net-leased properties sold or held for sale                   6,110               23,395            (17,285)

Revenus locatifs totaux (y compris les charges locatives remboursables)

                                                    1,177,438            1,080,623             96,815
Income from direct financing leases and loans
receivable                                                   67,555               74,893             (7,338)
Lease termination income and other                           53,655               11,082             42,573
Operating property revenues                                  13,478               11,399              2,079
                                                        $ 1,312,126          $ 1,177,997          $ 134,129


Lease Revenues

Les “propriétés louées nettes existantes” sont celles que nous avons acquises ou mises en service avant 1er janvier 2020 et qui n’ont pas été vendus ou détenus en vue de la vente au cours des périodes présentées. Pour les périodes présentées, il y avait 1 071 immeubles existants en location nette.

For the year ended December 31, 2021 as compared to 2020, lease revenues from
existing net-leased properties increased due to the following items (in
millions):
[[Image Removed: wpc-20211231_g3.jpg]]__________
                                                           WP Carey 2021 10-K - 31

————————————————– ——————————

(a)Excludes fixed minimum rent increases, which are reflected as straight-line
rent adjustments within lease revenues.
(b)Primarily related to (i) straight-line rent adjustments and (ii) write-offs
of above/below-market rent intangibles.
(c)Primarily comprised of winter storm-related charges recorded during the first
quarter of 2021 from a tenant at a property in Texas.

"Recently acquired net-leased properties" are those that we acquired or placed
into service subsequent to December 31, 2019 and that were not sold or held for
sale during the periods presented. Since January 1, 2020, we acquired 40
investments (comprised of 115 properties and six land parcels under buildings
that we already own) and placed two properties into service.

"Net-leased properties sold or held for sale" include (i) 24 net-leased
properties disposed of during the year ended December 31, 2021; (ii) two
net-leased properties classified as held for sale at December 31, 2021, which
were sold in January and February 2022 (  Note 4  ,   Note 1    7  ); and (iii)
21 net-leased properties disposed of during the year ended December 31, 2020.
Our dispositions are more fully described in   Note 15  .

Revenue from direct finance leases and loans receivable

We currently present Income from direct financing leases and loans receivable on
its own line item in the consolidated statements of income. Previously, income
from direct financing leases was included within Lease revenues and income from
loans receivable was included within Lease termination income and other in the
consolidated statements of income. Prior period amounts have been reclassified
to conform to the current period presentation.

For the year ended December 31, 2021 as compared to 2020, income from direct
financing leases and loans receivable decreased due to the following items (in
millions):
[[Image Removed: wpc-20211231_g4.jpg]]

Lease termination and other revenues

Lease termination and other revenues are described in Note 4 .

                                                           W. P. Carey 2021 

10-K – 32

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Operating property income and expenses

For the periods presented, we recorded operating property revenues from 12
operating properties, comprised of ten self-storage operating properties (which
excludes nine self-storage properties accounted for under the equity method) and
two hotel operating properties (one of which was sold in January 2020, as
described in   Note 15  ). For our remaining hotel operating property, revenues
and expenses increased by $3.2 million and $1.6 million, respectively, for the
year ended December 31, 2021 as compared to 2020, reflecting higher occupancy as
the hotel's business recovered from the COVID-19 pandemic. In addition, for the
year ended December 31, 2021 as compared to 2020, operating property revenues
and expenses decreased by $1.9 million each, due to the hotel sale in January
2020. Furthermore, for our self-storage operating properties, revenues and
expenses increased by $0.7 million and $0.2 million, respectively, for the year
ended December 31, 2021 as compared to 2020, reflecting higher occupancy and
unit rates.

Operating Expenses

Depreciation and Amortization

The following table presents the amortization expense of our Real Estate segment (in thousands):

                                                     Years Ended December 31,
                                                2021           2020          Change
            Depreciation and Amortization
            Net-leased properties            $ 467,803      $ 433,829      $ 33,974
            Operating properties                 2,747          4,017        (1,270)
            Corporate                            5,439          4,102         1,337
                                             $ 475,989      $ 441,948      $ 34,041


For the year ended December 31, 2021 compared to 2020, depreciation of net leased properties increased mainly due to the impact of acquisition activity and the strengthening of foreign currencies (mainly the euro) against we dollar between periods, partially offset by rental-in-place intangible assets recognized on certain net leased self-storage properties that will become fully amortized in 2020.

Beginning in the second quarter of 2020, corporate depreciation expense is fully accounted for in our Real Estate segment, consistent with the segment allocation changes described below under General and Administrative.

General and Administrative

Beginning with the second quarter of 2020, general and administrative expenses
attributed to our Investment Management segment are comprised of the incremental
costs of providing services to the Managed Programs, which are fully reimbursed
by those funds (resulting in no net expense for us). All other general and
administrative expenses are attributed to our Real Estate segment. Previously,
general and administrative expenses were allocated based on time incurred by our
personnel for the Real Estate and Investment Management segments. In light of
the termination of the advisory agreements with CWI 1 and CWI 2 in connection
with the WLT management internalization (  Note 3  ), we now view essentially
all assets, liabilities, and operational expenses as part of our Real Estate
segment, other than incremental activities that are expected to wind down as we
manage CPA:18 - Global and CESH through the end of their respective life cycles
(  Note 2  ). This change between the segments had no impact on our consolidated
financial statements.

For the year ended December 31, 2021 as compared to 2020, general and
administrative expenses allocated to our Real Estate segment increased by $11.8
million, primarily due to (i) higher incentive compensation expense, (ii) lower
overhead reimbursements from WLT following the termination of all services
provided under the transition services agreement, and (iii) the change in
methodology for allocation of expenses between our Real Estate and Investment
Management segments discussed above.

                                                           W. P. Carey 2021 

10-K – 33

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Real estate expenses, excluding reimbursable rental charges

For the year ended December 31, 2021 as compared to 2020, property expenses,
excluding reimbursable tenant costs, increased by $3.8 million, primarily due to
tenant vacancies during 2020 and 2021 (which resulted in property expenses no
longer being reimbursable) and higher property tax assessments at certain
properties.

Stock-based compensation expense

For a description of our equity plans and awards, please see   Note 13  .
Beginning with the second quarter of 2020, stock-based compensation expense is
fully recognized within our Real Estate segment. In light of the termination of
the advisory agreements with CWI 1 and CWI 2 in connection with the WLT
management internalization (  Note 3  ), we believe that this allocation
methodology is appropriate, as described above (  Note 2  ). This change between
the segments had no impact on our consolidated financial statements.

For the year ended December 31, 2021 compared to 2020, stock-based compensation expense allocated to the Real Estate segment increased by $9.6 millionprimarily due to changes in the projected payout of performance share units.

Impairment Charges

Our impairment charges are described in Note 8 .

Merger and other expenses

For the year ended December 31, 2021, merger and other expenses allocated to our
Real Estate segment totaled benefits of $4.6 million, primarily comprised of
reversals of estimated liabilities for German real estate transfer taxes that
were previously recorded in connection with business combinations in prior
years.

Other income and (expenses) and (provision for) income tax benefit

Interest charges

For the year ended December 31, 2021 as compared to 2020, interest expense
decreased by $13.3 million, primarily due to the reduction of our mortgage debt
outstanding by prepaying or repaying at or close to maturity a total of $1.1
billion of non-recourse mortgage loans with a weighted-average interest rate of
4.9% since January 1, 2020, partially offset by four senior unsecured notes
issuances totaling $1.9 billion (based on the exchange rate of the euro on the
dates of issuance for our euro-denominated senior unsecured notes) with a
weighted-average interest rate of 1.9% completed since January 1, 2020.

The following table presents certain information about our outstanding debt (in thousands of dollars):

                                                   Years Ended December 31,
                                                    2021              2020
           Average outstanding debt balance    $ 6,906,997       $ 6,411,355
           Weighted-average interest rate              2.6  %            3.0  %


Gain on sale of real estate, net

Gain on sale of real estate, net, consists of gain on the sale of properties
that were disposed of during the reporting period. Our dispositions are more
fully described in   Note 15  .

                                                           W. P. Carey 2021 10-K - 34

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(Loss) Gains from investments under the equity method in real estate

Our real estate investments using the equity method are further described in note 7 . The following table shows the (losses) earnings of real estate investments using the equity method (in thousands):

Completed exercises the 31st of December,

                                                                  2021              2020              Change

(Loss) Profits from equity method investments in real estate WLT losses (a)

                                           $ (10,790)         $ (5,028)         $  (5,762)
Proportionate share of impairment charge or
other-than-temporary impairment charge recognized on Bank
Pekao (  Note 7  ,   Note 8  )                                  (13,220)           (8,276)            (4,944)

Charge for permanent impairment on State Farm Mutual Automobile Insurance Co. ( Note 7 , Note 8 )

                (6,830)                -             (6,830)
Earnings from Las Vegas Retail Complex                            3,017                 -              3,017
Earnings from Johnson Self Storage (b)                            2,460               570              1,890
Earnings from Fortenova Grupa d.d. (c)                            1,542               371              1,171
Other                                                             4,172             3,346                826
                                                              $ (19,649)         $ (9,017)         $ (10,632)


__________
(a)Losses for each period are primarily due to the adverse impact of the
COVID-19 pandemic on WLT's operations. In addition, losses for 2021 reflect four
quarters of activity as compared to two quarters for 2020. We record (losses)
earnings from this investment on a one quarter lag.
(b)Increase is primarily due to higher occupancy rates at these self-storage
facilities.
(c)Increase is primarily due to improved performance at these properties, as
well as our proportionate share of a gain recognized on the sale of one of the
properties in this portfolio.

Off-farm income

Non-operating income primarily includes realized gains and losses on derivative instruments, dividends on equity securities and interest income on our loans to affiliates and cash deposits.

The following table presents non-operating income within our Real Estate segment
(in thousands):
                                                                      Years Ended December 31,
                                                              2021               2020             Change

Non-operating income Cash dividend from our investment in Lineage Logistics (note 8)

                                              $    6,438        

$- $6,438
Cash dividends from our investment in WLT preferred shares (note 8)

                                               4,893                 -             4,893

Gains realized on forward collars and foreign exchange contracts

                                                      2,357             8,162            (5,805)
Interest income related to our loans to affiliates and
cash deposits                                                     90               808              (718)
                                                          $   13,778          $  8,970          $  4,808


Other gains and (losses)

Other gains and (losses) primarily consists of gains and losses on (i)
extinguishment of debt, (ii) the mark-to-market fair value of equity securities,
and (iii) foreign currency transactions. The timing and amount of such gains or
losses cannot always be estimated and are subject to fluctuation. All of our
foreign currency-denominated unsecured debt instruments were designated as net
investment hedges during the years ended December 31, 2021 and 2020. Therefore,
no gains and losses on foreign currency transactions were recognized on the
remeasurement of such instruments during those periods (  Note 9  ).

                                                           W. P. Carey 2021 

10-K – 35

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The following table presents other gains and (losses) within our Real Estate
segment (in thousands):
                                                                     Years Ended December 31,
                                                             2021              2020              Change
Other Gains and (Losses)
Non-cash unrealized gains related to an increase in the
fair value of our investment in shares of Lineage
Logistics (  Note 8  )                                   $  76,312          $ 48,326          $  27,986
Loss on extinguishment of debt (a)                         (75,339)           (1,487)           (73,852)

Net realized and unrealized gains (losses) on foreign exchange transactions (b)

                                  (15,608)           11,018            (26,626)
Change in allowance for credit losses on finance
receivables (  Note 5  )                                      (266)          (22,259)            21,993
Other                                                        1,225             1,506               (281)
                                                         $ (13,676)         $ 37,104          $ (50,780)


__________
(a)Amount for the year ended December 31, 2021 is related to the prepayment of
mortgage loans (primarily comprised of prepayment penalties totaling $45.2
million) and redemption of the €500.0 million of 2.0% Senior Notes due 2023 in
March 2021 (primarily comprised of a "make-whole" amount of $26.2 million
related to the redemption) (  Not    e 10  ).
(b)We make certain foreign currency-denominated intercompany loans to a number
of our foreign subsidiaries, most of which do not have the U.S. dollar as their
functional currency. Remeasurement of foreign currency intercompany transactions
that are scheduled for settlement, consisting primarily of accrued interest and
amortizing loans, are included in other gains and (losses).

(Provision for) Income tax benefit

For the year ended December 31, 2021, we recorded a provision for income taxes
of $28.7 million, compared to a benefit from income taxes of $18.5 million
recognized during the year ended December 31, 2020, within our Real Estate
segment. During the year ended December 31, 2020, we recognized a deferred tax
benefit of $37.2 million as a result of the release of a deferred tax liability
relating to our investment in shares of Lineage Logistics (  Note 13  ), which
converted to a REIT during the prior year period and is therefore no longer
subject to federal and state income taxes. In addition, international taxes
increased due to acquisitions and various new tax laws and regulations.

Investment management

We earn revenue as the advisor to the Managed Programs. For the periods
presented, we acted as advisor to the following Managed Programs: CPA:18 -
Global, CWI 1 (through April 13, 2020), CWI 2 (through April 13, 2020), and
CESH. The CWI 1 and CWI 2 Merger closed on April 13, 2020, and as a result, the
advisory agreements with each of CWI 1 and CWI 2 terminated and CWI 2 was
renamed Watermark Lodging Trust, Inc. ("WLT"). We provided certain services to
WLT pursuant to a transition services agreement, which was terminated on October
13, 2021 (  Note 3  ).

We no longer raise capital for new or existing funds, but we currently expect to
continue managing CPA:18 - Global and CESH and earn the various fees described
below through the end of their respective life cycles (  Note 1  ,   Note 3 

).

From December 31, 2021we have managed total assets of approximately $2.7 billion
on behalf of the managed programs.

                                                           W. P. Carey 2021 

10-K – 36

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Revenue

The following table shows the revenues of our Investment Management segment (in thousands):

                                            Years Ended December 31,
                                        2021          2020         Change
Investment Management Revenues
Asset management and other revenue
CPA:18 - Global                      $ 12,528      $ 12,112      $     416
CWI 1                                       -         3,795         (3,795)
CWI 2                                       -         3,367         (3,367)
CESH                                    2,835         3,193           (358)
                                       15,363        22,467         (7,104)
Reimbursable costs from affiliates
CPA:18 - Global                         2,874         2,854             20
CWI 1                                       -         1,867         (1,867)
CWI 2                                       -         1,301         (1,301)
CESH                                      878         1,170           (292)
WLT                                       283         1,663         (1,380)
                                        4,035         8,855         (4,820)
                                     $ 19,398      $ 31,322      $ (11,924)


Asset management and other income

Asset management and other revenue includes asset management revenue,
structuring revenue, and other advisory revenue. During the periods presented,
we earned asset management revenue from (i) CPA:18 - Global based on the value
of its real estate-related assets under management, (ii) the CWI REITs, prior to
the CWI 1 and CWI 2 Merger (  Note 3  ), based on the value of their
lodging-related real estate assets under management, and (iii) CESH based on its
gross assets under management at fair value. Asset management revenue may
increase or decrease depending upon changes in the Managed Programs' asset bases
as a result of purchases, sales, or changes in the appraised value of the real
estate-related and lodging-related assets in their investment portfolios. For
2021, we received asset management fees from (i) CPA:18 - Global in shares of
its common stock, and (ii) CESH in cash.

We earn structuring and other advisory revenue when we structure new investments
on behalf of the Managed Programs. Since we no longer raise capital for new or
existing funds, and we no longer serve as advisor to CWI 1 and CWI 2 (  Note
3  ), structuring and other advisory revenue has recently been and is expected
to be insignificant going forward.

For the year ended December 31, 2020, structuring and other advisory revenue was
comprised of $0.3 million for structuring a mortgage refinancing on behalf of
CWI 2 and $0.2 million related to increases in build-to-suit funding commitments
for certain CPA:18 - Global investments.

Functionnary costs

General and administrative expenses, stock-based compensation expenses and depreciation and amortization

Beginning with the second quarter of 2020, general and administrative expenses
attributed to our Investment Management segment are comprised of the incremental
costs of providing services to the Managed Programs, which are fully reimbursed
by those funds (resulting in no net expense for us). All other general and
administrative expenses are attributed to our Real Estate segment. Previously,
general and administrative expenses were allocated based on time incurred by our
personnel for the Real Estate and Investment Management segments. In addition,
beginning with the second quarter of 2020, stock-based compensation expense and
corporate depreciation and amortization expense are fully recognized within our
Real Estate segment. In light of the termination of the advisory agreements with
CWI 1 and CWI 2 in connection with the WLT management internalization (  Note
3  ), we now view essentially all assets, liabilities, and operational expenses
as part of our Real Estate segment, other than incremental activities that are
expected to wind down as we manage CPA:18 - Global and CESH through the end of
their respective life cycles (  Note 2  ). These changes between the segments
had no impact on our consolidated financial statements.

                                                           W. P. Carey 2021 

10-K – 37

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As discussed in   Note 3  , certain personnel costs and overhead costs are
charged to the remaining Managed Programs and reimbursed to us in accordance
with their respective advisory agreements. In addition, following the closing of
the CWI 1 and CWI 2 Merger on April 13, 2020, we began recording reimbursements
from WLT within our Investment Management segment pursuant to a transition
services agreement. On October 13, 2021, all services provided under the
transition services agreement were terminated.

Sub-advisor fees

Pursuant to the terms of the subadvisory agreements we had with the third-party
subadvisors in connection with both CWI 1 and CWI 2, we paid a subadvisory fee
equal to 20% of the amount of fees paid to us by CWI 1 and 25% of the amount of
fees paid to us by CWI 2. Upon completion of the CWI 1 and CWI 2 Merger on April
13, 2020 (  Note 3  ), the subadvisory agreements were terminated, and we no
longer pay subadvisory fees.

Other income and expenses, and income tax benefit

Profits (losses) from investments under the equity method in managed programs

Earnings (losses) from equity method investments in the Managed Programs is
recognized in accordance with GAAP (  Note 7  ). In addition, we are entitled to
receive distributions of Available Cash (  Note 3  ) from the operating
partnership of CPA:18 - Global. The net income of our unconsolidated investments
fluctuates based on the timing of transactions, such as new leases and property
sales, as well as the level of impairment charges. The following table presents
the details of our Earnings (losses) from equity method investments in the
Managed Programs (in thousands):
                                                                            

Completed exercises the 31st of December,

                                                                               2021                 2020

Profits (losses) from equity method investments in managed programs: CPA:18 Free Cash Distributions – Global (a)

                  $ 

7,345 $7,225
Profits (losses) from investments under the equity method in managed programs (b)

                                                                              1,475             (2,662)

Long-term impairment charges on our equity accounted investments in CWI 1 and CWI 2 (c)

                                                               -            (47,112)

Gain on redemption of special general partner interests in CWI 1 and CWI 2, net (d)

                                                                           -             33,009

Gains (losses) from investments under the equity method in managed programs $

8,820 ($9,540)

__________

(a)We are entitled to receive distributions of up to 10% of the Available Cash
from the operating partnership of CPA:18 - Global, as defined in its operating
partnership agreement (  Note 3  ). Distributions of Available Cash received and
earned from CPA:18 - Global fluctuate based on the timing of certain events,
including acquisitions and dispositions.
(b)The increase for the year ended December 31, 2021 as compared to 2020 was
primarily due to an increase of $1.2 million from our investment in shares of
CPA:18 - Global, resulting from an increase in our ownership since we receive
asset management revenue from CPA:18 - Global in shares of its common stock. In
addition, during the year ended December 31, 2020, we recognized losses of $1.6
million and $1.3 million from our investments in shares of CWI 1 and CWI 2
common stock, respectively (prior to the CWI 1 and CWI 2 Merger in April 2020
(  Note 3  )). Subsequent to the CWI 1 and CWI 2 Merger, our investment in
shares of WLT (formerly CWI 2) common stock is included in our Real Estate
segment (  Note 3  ).
(c)During the year ended December 31, 2020, we recognized other-than-temporary
impairment charges of $27.8 million and $19.3 million on our equity method
investments in CWI 1 and CWI 2, respectively, to reduce the carrying values of
our investments to their estimated fair values, due to the adverse effect of the
COVID-19 pandemic on the operations of CWI 1 and CWI 2 (  Note 8  ).
(d)Immediately following the closing of the CWI 1 and CWI 2 Merger, in
connection with the redemption of the special general partner interests that we
previously held in CWI 1 and CWI 2, we recognized a non-cash net gain on sale of
$33.0 million during the year ended December 31, 2020 (  Note 3  ,   Note 6  ).

                                                           W. P. Carey 2021 10-K - 38

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Benefit from income tax

For the year ended December 31, 2021 as compared to 2020, benefit from income
taxes within our Investment Management segment decreased by $2.0 million. During
the year ended December 31, 2020, we recognized (i) a deferred tax benefit of
$6.3 million as a result of the other-than-temporary impairment charges that we
recognized on our equity method investments in CWI 1 and CWI 2 during the
period, (ii) a current tax benefit of $4.7 million as a result of carrying back
certain net operating losses in accordance with the Coronavirus Aid, Relief, and
Economic Security Act ("CARES Act") that was enacted on March 27, 2020, and
(iii) deferred tax expense of $8.3 million due to the establishment of a
valuation allowance since we do not expect our Investment Management segment to
realize its deferred tax assets.

Net income attributable to non-controlling interests

For the year ended December 31, 2020, net income attributable to noncontrolling
interests within our Investment Management segment was comprised of a gain of
$9.9 million recognized on the redemption of noncontrolling interests in the
special general partner interests previously held by the respective subadvisors
for CWI 1 and CWI 2 in connection with the CWI 1 and CWI 2 Merger (  Note 3 

).

Cash and capital resources

Sources and uses of cash during the year

We use the cash flow generated from our investments primarily to meet our
operating expenses, service debt, and fund dividends to stockholders. Our cash
flows fluctuate periodically due to a number of factors, which may include,
among other things: the timing of our equity and debt offerings; the timing of
purchases and sales of real estate; the timing of the repayment of mortgage
loans and receipt of lease revenues; the timing and amount of other
lease-related payments; the timing of settlement of foreign currency
transactions; changes in foreign currency exchange rates; the receipt of asset
management fees in either shares of the common stock of CPA:18 - Global or cash;
the timing of distributions from equity investments in the Managed Programs and
real estate; and the receipt of distributions of Available Cash from CPA:18 -
Global. Despite these fluctuations, we believe that we will generate sufficient
cash from operations to meet our normal recurring short-term and long-term
liquidity needs. We may also use existing cash resources, available capacity
under our Senior Unsecured Credit Facility, proceeds from dispositions of
properties, and the issuance of additional debt or equity securities, such as
issuances of common stock through our Equity Forwards and ATM Program (  Note
12  ), in order to meet these needs. We assess our ability to access capital on
an ongoing basis. Our sources and uses of cash during the period are described
below.

Operating Activities - Net cash provided by operating activities increased by
$124.9 million during 2021 as compared to 2020, primarily due to an increase in
cash flow generated from net investment activity and scheduled rent increases at
existing properties, higher lease termination and other income, the positive
impact on rent collections as businesses recovered from the effects of the
COVID-19 pandemic, lower interest expense, and cash dividends received from our
investments in shares of Lineage Logistics and WLT during the current year
(  Note 8  ).

Investing Activities - Our investing activities are generally comprised of real
estate-related transactions (purchases and sales) and funding for build-to-suit
activities and other capital expenditures on real estate. In addition to these
types of transactions, during the year ended December 31, 2021, we used $41.0
million to fund short-term loans to the Managed Programs, while $62.0 million of
such loans were repaid (  Note 3  ). We also received $14.0 million in
distributions from equity method investments.

Financing Activities - Our financing activities are generally comprised of
borrowings and repayments under our Unsecured Revolving Credit Facility,
issuances of the Senior Unsecured Notes, payments and prepayments of
non-recourse mortgage loans, and payments of dividends to stockholders. In
addition to these types of transactions, during the year ended December 31,
2021, we (i) redeemed the €500.0 million of 2.0% Senior Notes due 2023 for a
total of $617.4 million (  Note 10  ), (ii) received $697.0 million in net
proceeds from the issuance of common stock under our Equity Forwards (  Note
12  ), and (iii) received $340.0 million in net proceeds from the issuance of
common stock under our ATM Program (  Note 12  ).

                                                           W. P. Carey 2021 

10-K – 39

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Funding summary

The table below summarizes our senior unsecured notes, non-recourse mortgage loans and senior unsecured credit facility (in thousands of dollars):

                                                             December 31,
                                                        2021              2020
Carrying Value
Fixed rate:
Senior Unsecured Notes (a)                         $ 5,701,913       $ 5,146,192
Non-recourse mortgages (a)                             235,898           920,378
                                                     5,937,811         6,066,570
Variable rate:
Unsecured Revolving Credit Facility                    410,596            

82,281

Unsecured Term Loans (a)                               310,583           

321 971

Non-recourse mortgages (a):
Amount subject to interest rate swaps and caps          79,055           147,094
Floating interest rate mortgage loans                   53,571            78,082
                                                       853,805           629,428
                                                   $ 6,791,616       $ 6,695,998

Percent of Total Debt
Fixed rate                                                  87  %             91  %
Variable rate                                               13  %              9  %
                                                           100  %            100  %
Weighted-Average Interest Rate at End of Year
Fixed rate                                                 2.7  %            3.0  %
Variable rate (b)                                          1.1  %            1.6  %
Total debt                                                 2.5  %            2.9  %



____________
(a)Aggregate debt balance includes unamortized discount, net, totaling $30.9
million and $28.3 million as of December 31, 2021 and 2020, respectively, and
unamortized deferred financing costs totaling $28.8 million and $24.3 million as
of December 31, 2021 and 2020, respectively.
(b)The impact of our interest rate swaps and caps is reflected in the
weighted-average interest rates.

Cash resources

AT December 31, 2021our cash resources consisted of the following:

•cash and cash equivalents totaling $165.4 million. Of this amount, $74.1
million, at then-current exchange rates, was held in foreign subsidiaries, and
we could be subject to restrictions or significant costs should we decide to
repatriate these amounts;
•our Unsecured Revolving Credit Facility, with available capacity of $1.4
billion (net of amounts reserved for standby letters of credit totaling $1.2
million);
•available proceeds under our Equity Forwards of approximately $293.7 million
(based on 3,925,000 remaining shares outstanding and a net offering price of
$74.84 per share as of December 31, 2021); and
•unleveraged properties that had an aggregate asset carrying value of
approximately $12.4 billion at December 31, 2021, although there can be no
assurance that we would be able to obtain financing for these properties.

                                                           W. P. Carey 2021 

10-K – 40

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Historically, we have also accessed the capital markets through additional debt
(denominated in both U.S. dollars and euros) and equity offerings. During the
year ended December 31, 2021, we issued (i) €525.0 million of 0.950% Senior
Notes due 2030, $425.0 million of 2.250% Senior Notes due 2033, and $350.0
million of 2.450% Senior Notes due 2032 (our inaugural green bond offering)
(  Note 11  ), (ii) 9,798,209 shares of common stock under our Equity Forwards
for aggregate net proceeds of $697.0 million (  Note 12  ), and (iii) 4,690,073
shares of common stock under our ATM Program for net proceeds of $340.0 million
(  Note 12  ). As of December 31, 2021, we had approximately $293.7 million of
available proceeds under our Equity Forwards and $272.1 million remained
available for issuance under our current ATM Program (  Note 12  ). See   Note
17  , Subsequent Events for issuances under our current ATM Program subsequent
to December 31, 2021 and through the date of this Report.

Our cash may be used for working capital requirements and other commitments and may be used for future investments.

Cash requirements and liquidity

As of December 31, 2021, we had $165.4 million of cash and cash equivalents,
approximately $1.4 billion of available capacity under our Unsecured Revolving
Credit Facility (net of amounts reserved for standby letters of credit totaling
$1.2 million), and available proceeds under our Equity Forwards of approximately
$293.7 million (based on 3,925,000 remaining shares outstanding and a net
offering price of $74.84 as of that date). Our Senior Unsecured Credit Facility
includes a $1.8 billion Unsecured Revolving Credit Facility and Unsecured Term
Loans outstanding totaling $310.6 million as of December 31, 2021 (  Note 10  ),
and is scheduled to mature on February 20, 2025. As of December 31, 2021,
scheduled debt principal payments total $45.8 million through December 31, 2022
and $236.7 million through December 31, 2023, and our Senior Unsecured Notes do
not start to mature until April 2024 (  Note 10  ).

Over the next 12 months December 31, 2021 and thereafter, we anticipate that our significant cash requirements will include:

•paying dividends to our stockholders;
•making scheduled principal and balloon payments on our debt obligations (  Note
10  );
•making scheduled interest payments on our debt obligations (future interest
payments total $884.3 million, with $169.6 million due during the next 12
months; interest on unhedged variable-rate debt obligations was calculated using
the applicable annual variable interest rates and balances outstanding at
December 31, 2021);
•funding future capital commitments and tenant improvement allowances (  Note
4  ); and
•other normal recurring operating expenses.

We expect to fund these cash requirements through cash generated from
operations, cash received from dispositions of properties, the use of our cash
reserves or unused amounts on our Unsecured Revolving Credit Facility (as
described above), issuances of common stock through our Equity Forwards and/or
ATM Program (  Note 12  ), and potential issuances of additional debt or equity
securities. We may also choose to pursue the acquisitions of new investments and
prepayments of certain of our non-recourse mortgage loan obligations, depending
on our capital needs and improvements in market conditions at that time.

Our liquidity could be adversely affected by unanticipated costs,
greater-than-anticipated operating expenses, and the adverse impact of the
COVID-19 pandemic. To the extent that our working capital reserve is
insufficient to satisfy our cash requirements, additional funds may be provided
from cash from operations to meet our normal recurring short-term and long-term
liquidity needs. We may also use existing cash resources, available capacity
under our Unsecured Revolving Credit Facility, mortgage loan proceeds, and the
issuance of additional debt or equity securities to meet these needs. The extent
to which the COVID-19 pandemic impacts our liquidity and debt covenants will
depend on future developments, which are highly uncertain and cannot be
predicted with confidence. The potential impact of the COVID-19 pandemic on our
tenants and properties could also have a material adverse effect on our
liquidity and debt covenants.

Certain amounts indicated above are based on the exchange rate applicable to the December 31, 2021.

                                                           W. P. Carey 2021 

10-K – 41

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Environmental obligations

In connection with the purchase of many of our properties, we required the
sellers to perform environmental reviews. We believe, based on the results of
these reviews, that our properties were in substantial compliance with federal,
state, and foreign environmental statutes at the time the properties were
acquired. However, portions of certain properties have been subject to some
degree of contamination, principally in connection with leakage from underground
storage tanks, surface spills, or other on-site activities. In most instances
where contamination has been identified, tenants are actively engaged in the
remediation process and addressing identified conditions. We believe that the
ultimate resolution of any environmental matters should not have a material
adverse effect on our financial condition, liquidity, or results of operations.
We record environmental obligations within Accounts payable, accrued expenses
and other liabilities in the consolidated financial statements. See   Item 1A.
Risk Factors   for further discussion of potential environmental risks.

Critical accounting estimates

Our significant accounting policies are described in   Note 2  . Many of these
accounting policies require judgment and the use of estimates and assumptions
when applying these policies in the preparation of our consolidated financial
statements. On a quarterly basis, we evaluate these estimates and judgments
based on historical experience as well as other factors that we believe to be
reasonable under the circumstances. These estimates are subject to change in the
future if underlying assumptions or factors change. Certain accounting policies,
while significant, may not require the use of estimates. Those accounting
policies that require significant estimation and/or judgment are described under
Critical Accounting Policies and Estimates in   Note 2  . The proposed
accounting changes that may potentially impact our business are also described
under Recently Adopted Accounting Pronouncements in   Note 2  .

Additional financial measures

In the real estate industry, analysts and investors employ certain non-GAAP
supplemental financial measures in order to facilitate meaningful comparisons
between periods and among peer companies. Additionally, in the formulation of
our goals and in the evaluation of the effectiveness of our strategies, we use
Funds from Operations ("FFO") and AFFO, which are non-GAAP measures defined by
our management. We believe that these measures are useful to investors to
consider because they may assist them to better understand and measure the
performance of our business over time and against similar companies. A
description of FFO and AFFO and reconciliations of these non-GAAP measures to
the most directly comparable GAAP measures are provided below.

Funds from operations and adjusted funds from operations

Due to certain unique operating characteristics of real estate companies, as
discussed below, the National Association of Real Estate Investment Trusts, Inc.
("NAREIT"), an industry trade group, has promulgated a non-GAAP measure known as
FFO, which we believe to be an appropriate supplemental measure, when used in
addition to and in conjunction with results presented in accordance with GAAP,
to reflect the operating performance of a REIT. The use of FFO is recommended by
the REIT industry as a supplemental non-GAAP measure. FFO is not equivalent to,
nor a substitute for, net income or loss as determined under GAAP.

We define FFO, a non-GAAP measure, consistent with the standards established by
the White Paper on FFO approved by the Board of Governors of NAREIT, as restated
in December 2018. The White Paper defines FFO as net income or loss computed in
accordance with GAAP, excluding gains or losses from sales of property,
impairment charges on real estate, gains or losses on changes in control of
interests in real estate, and depreciation and amortization from real estate
assets; and after adjustments for unconsolidated partnerships and jointly owned
investments. Adjustments for unconsolidated partnerships and jointly owned
investments are calculated to reflect FFO.

We also modify the NAREIT computation of FFO to adjust GAAP net income for
certain non-cash charges, such as amortization of real estate-related
intangibles, deferred income tax benefits and expenses, straight-line rent and
related reserves, other non-cash rent adjustments, non-cash allowance for credit
losses on loans receivable and direct financing leases, stock-based
compensation, non-cash environmental accretion expense, amortization of
discounts and premiums on debt, and amortization of deferred financing costs.
Our assessment of our operations is focused on long-term sustainability and not
on such non-cash items, which may cause short-term fluctuations in net income
but have no impact on cash flows. Additionally, we exclude non-core income and
expenses, such as gains or losses from extinguishment of debt, and merger and
acquisition expenses. We also exclude realized and unrealized gains/losses on
foreign currency exchange transactions (other than those
                                                           W. P. Carey 2021 

10-K – 42

————————————————– ——————————

realized on the settlement of foreign currency derivatives), which are not
considered fundamental attributes of our business plan and do not affect our
overall long-term operating performance. We refer to our modified definition of
FFO as AFFO. We exclude these items from GAAP net income to arrive at AFFO as
they are not the primary drivers in our decision-making process and excluding
these items provides investors a view of our portfolio performance over time and
makes it more comparable to other REITs that are currently not engaged in
acquisitions, mergers, and restructuring, which are not part of our normal
business operations. AFFO also reflects adjustments for unconsolidated
partnerships and jointly owned investments. We use AFFO as one measure of our
operating performance when we formulate corporate goals, evaluate the
effectiveness of our strategies, and determine executive compensation.

We believe that AFFO is a useful supplemental measure for investors to consider
as we believe it will help them to better assess the sustainability of our
operating performance without the potentially distorting impact of these
short-term fluctuations. However, there are limits on the usefulness of AFFO to
investors. For example, impairment charges and unrealized foreign currency
losses that we exclude may become actual realized losses upon the ultimate
disposition of the properties in the form of lower cash proceeds or other
considerations. We use our FFO and AFFO measures as supplemental financial
measures of operating performance. We do not use our FFO and AFFO measures as,
nor should they be considered to be, alternatives to net income computed under
GAAP, or as alternatives to net cash provided by operating activities computed
under GAAP, or as indicators of our ability to fund our cash needs.

Consolidated FFO and AFFO are as follows (in thousands):

Completed exercises the 31st of December,

                                                                             2021                    2020
Net income attributable to W. P. Carey                               $     409,988               $ 455,359

Adjustments:

Depreciation and amortization of real property                             470,554                 437,885
Gain on sale of real estate, net                                           (40,425)               (109,370)
Impairment charges                                                          24,246                  35,830

Share of adjustments to income from equity affiliates (a) (b) (c) (d)

                                                 32,213                  46,679

Share of adjustments for non-controlling interests (e)

    (16)                    (18)
Total adjustments                                                          486,572                 411,006
FFO (as defined by NAREIT) attributable to W. P. Carey                     896,560                 866,365

Adjustments:

Straight-line and other leasing and financing adjustments (f)              (83,267)                (41,498)
Above- and below-market rent intangible lease amortization, net             53,585                  48,712
Stock-based compensation                                                    24,881                  15,938
Amortization of deferred financing costs                                    13,523                  12,223
Other (gains) and losses (g)                                                12,885                 (37,165)
Tax (benefit) expense - deferred and other (h) (i) (j)                      (5,967)                (48,835)
Merger and other expenses (k)                                               (4,546)                    247
Other amortization and non-cash items                                        1,709                   1,864

Share of adjustments to income from equity affiliates (d)

                                                             12,152                  10,821

Share of adjustments for non-controlling interests (e)

    (24)                    414
Total adjustments                                                           24,931                 (37,279)
AFFO attributable to W. P. Carey                                     $     921,491               $ 829,086

Summary

FFO (as defined by NAREIT) attributable to W. P. Carey               $     896,560               $ 866,365
AFFO attributable to W. P. Carey                                     $     921,491               $ 829,086



                                                           W. P. Carey 2021 10-K - 43

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Real Estate FFOs and AFFOs were as follows (in thousands):

Completed exercises the 31st of December,

                                                                             2021                    2020
Net income from Real Estate attributable to W. P. Carey              $     384,766               $ 459,512

Adjustments:

Depreciation and amortization of real property                             470,554                 437,885
Gain on sale of real estate, net                                           (40,425)               (109,370)
Impairment charges                                                          24,246                  35,830

Share of adjustments to income from equity affiliates (a) (d)

                                                         32,213                  22,036

Share of adjustments for non-controlling interests (e)

    (16)                    (18)
Total adjustments                                                          486,572                 386,363

FFO (as defined by NAREIT) attributable to WP Carey – Real estate 871,338

                 845,875

Adjustments:

Straight-line and other leasing and financing adjustments (f)              (83,267)                (41,498)
Above- and below-market rent intangible lease amortization, net             53,585                  48,712
Stock-based compensation                                                    24,881                  15,247
Other (gains) and losses (g)                                                13,676                 (37,104)
Amortization of deferred financing costs                                    13,523                  12,223
Tax (benefit) expense - deferred and other (i)                              (4,938)                (45,511)
Merger and other expenses (k)                                               (4,597)                   (937)
Other amortization and non-cash items                                        1,709                   1,665

Share of adjustments to income from equity affiliates (d)

                                                             10,253                   5,089

Share of adjustments for non-controlling interests (e)

    (24)                    414
Total adjustments                                                           24,801                 (41,700)
AFFO attributable to W. P. Carey - Real Estate                       $     896,139               $ 804,175

Summary

FFO (as defined by NAREIT) attributable to WP Carey – Real estate $871,338

               $ 845,875
AFFO attributable to W. P. Carey - Real Estate                       $     896,139               $ 804,175



                                                           W. P. Carey 2021 10-K - 44

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Investment Management FFOs and AFFOs are as follows (in thousands):

Completed exercises the 31st of December,

                                                                          2021                 2020

Net income (loss) from investment management attributable to WP Carey

                                                               $      25,222          $  (4,153)
Adjustments:
Proportionate share of adjustments to earnings from equity method
investments (b) (c) (d)                                                         -             24,643
Total adjustments                                                               -             24,643

FFO (as defined by NAREIT) attributable to WP Carey – Investment management

                                                                 25,222             20,490

Adjustments:

Tax (benefit) expense - deferred and other (h) (j)                         (1,029)            (3,324)
Other (gains) and losses (g)                                                 (791)               (61)
Merger and other expenses                                                      51              1,184
Stock-based compensation                                                        -                691
Other amortization and non-cash items                                           -                199

Share of adjustments to income from equity affiliates (d)

                                                             1,899              5,732
Total adjustments                                                             130              4,421
AFFO attributable to W. P. Carey - Investment Management            $      

25,352 $24,911

Summary

FFO (as defined by NAREIT) attributable to WP Carey – Investment management

                                                          $      25,222          $  20,490
AFFO attributable to W. P. Carey - Investment Management            $      

25,352 $24,911

__________

(a)Amounts for the years ended December 31, 2021 and 2020 include non-cash
other-than-temporary impairment charges totaling $6.8 million and $8.3 million,
respectively, recognized on certain equity method investments in real estate
(  Note 7  ,   Note 8  ). Amount for the year ended December 31, 2021 includes
our $13.2 million proportionate share of an impairment charge recognized on an
equity method investment in real estate (  Note 7  ).
(b)Amount for the year ended December 31, 2020 includes a non-cash net gain of
$33.0 million (inclusive of $9.9 million attributable to the redemption of a
noncontrolling interest that the former subadvisors for CWI 1 and CWI 2 held in
the special general partner interests) recognized in connection with
consideration received at closing of the CWI 1 and CWI 2 Merger (  Note 3  ,
  Note 6  ).
(c)Amount for the year ended December 31, 2020 includes non-cash
other-than-temporary impairment charges totaling $47.1 million recognized on our
equity investments in CWI 1 and CWI 2 (  Note 8  ).
(d)Equity income, including amounts that are not typically recognized for FFO
and AFFO, is recognized within Earnings (losses) from equity method investments
on the consolidated statements of income. This represents adjustments to equity
income to reflect FFO and AFFO on a pro rata basis.
(e)Adjustments disclosed elsewhere in this reconciliation are on a consolidated
basis. This adjustment reflects our FFO or AFFO on a pro rata basis.
(f)Amount for the year ended December 31, 2021 includes an adjustment to exclude
$37.8 million of lease termination fees received from a tenant, as such amount
was determined to be non-core income (  Note 4  ).
(g)Primarily comprised of gains and losses on extinguishment of debt, the
mark-to-market fair value of equity securities, and foreign currency
transactions, as well as non-cash allowance for credit losses on loans
receivable and direct financing leases.
(h)Amount for the year ended December 31, 2020 includes one-time taxes incurred
upon the recognition of taxable income associated with the accelerated vesting
of shares (previously issued by CWI 1 and CWI 2 to us for asset management
services performed) in connection with the CWI 1 and CWI 2 Merger.
(i)Amount for the year ended December 31, 2020 includes a non-cash deferred tax
benefit of $37.2 million as a result of the release of a deferred tax liability
relating to our investment in shares of Lineage Logistics, which converted to a
REIT during the prior year and is therefore no longer subject to federal and
state income taxes (  Note 14  ).
(j)Amount for the year ended December 31, 2020 includes a one-time tax benefit
of $4.7 million as a result of carrying back certain net operating losses in
accordance with the CARES Act, which was enacted on March 27, 2020 (  Note
14  ).
                                                           W. P. Carey 2021 10-K - 45

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(k) Amount for the year ended December 31, 2021 primarily includes reversals of estimated liabilities for German real estate transfer tax that were previously recognized as part of business combinations in previous years.

While we believe that FFO and AFFO are important supplemental measures, they
should not be considered as alternatives to net income as an indication of a
company's operating performance. These non-GAAP measures should be used in
conjunction with net income as defined by GAAP. FFO and AFFO, or similarly
titled measures disclosed by other REITs, may not be comparable to our FFO and
AFFO measures.
                                                           W. P. Carey 2021 10-K - 46

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