{"url_path":"/sec/wpc/10-k/2026/item-8","section_key":"item-8","section_title":"Item 8 Financial Statements and Supplementary Data.","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-02-11","source_url":"https://www.sec.gov/Archives/edgar/data/1025378/0001025378-26-000036-index.html","accession_number":"0001025378-26-000036","cik":"0001025378","ticker":"WPC","issuer_name":"W. P. Carey Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1025378/0001025378-26-000036-index.html","primary_entity_key":"0001025378","primary_entity_name":"W. P. Carey Inc."},"word_count":39035,"has_tables":true,"body_markdown":"Item 8. Financial Statements and Supplementary Data.\n\nTABLE OF CONTENTSPage No.\n\n[Report of Independent Registered Public Accounting Firm](#i52e238857d8641668248158c9abdf12c_94) (PCAOB ID 238)\n\n[47](#i52e238857d8641668248158c9abdf12c_94)\n\n[Consolidated Balance Sheets as of December 31, 2025 and 2024](#i52e238857d8641668248158c9abdf12c_97)\n\n[49](#i52e238857d8641668248158c9abdf12c_97)\n\n[Consolidated Statements of Income for the Years Ended December 31, 2025, 2024, and 2023](#i52e238857d8641668248158c9abdf12c_100)\n\n[50](#i52e238857d8641668248158c9abdf12c_100)\n\n[Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2025, 2024, and 2023](#i52e238857d8641668248158c9abdf12c_103)\n\n[51](#i52e238857d8641668248158c9abdf12c_103)\n\n[Consolidated Statements of Equity for the Years Ended December 31, 2025, 2024, and 2023](#i52e238857d8641668248158c9abdf12c_106)\n\n[52](#i52e238857d8641668248158c9abdf12c_106)\n\n[Consolidated Statements of Cash Flows for the Years Ended December 31, 2025, 2024, and 2023](#i52e238857d8641668248158c9abdf12c_109)\n\n[55](#i52e238857d8641668248158c9abdf12c_109)\n\n[Notes to Consolidated Financial Statements](#i52e238857d8641668248158c9abdf12c_112)\n\n[57](#i52e238857d8641668248158c9abdf12c_112)\n\n[Schedule II — Valuation and Qualifying Accounts for the Years Ended December 31, 2025, 2024, and 2023](#i52e238857d8641668248158c9abdf12c_184)\n\n[107](#i52e238857d8641668248158c9abdf12c_184)\n\n[Schedule III — Real Estate and Accumulated Depreciation as of December 31, 2025](#i52e238857d8641668248158c9abdf12c_187)\n\n[108](#i52e238857d8641668248158c9abdf12c_187)\n\n[Notes to Schedule III for the Years Ended December 31, 2025, 2024, and 2023](#i52e238857d8641668248158c9abdf12c_193)\n\n[124](#i52e238857d8641668248158c9abdf12c_193)\n\n[Schedule IV — Mortgage Loans on Real Estate as of December 31, 2025](#i52e238857d8641668248158c9abdf12c_196)\n\n[126](#i52e238857d8641668248158c9abdf12c_196)\n\nFinancial statement schedules other than those listed above are omitted because the required information is given in the financial statements, including the notes thereto, or because the conditions requiring their filing do not exist.\n\nW. P. Carey 2025 10-K – 46\n\nReport of Independent Registered Public Accounting Firm\n\nTo the Board of Directors and Stockholders of W. P. Carey Inc.\n\nOpinions on the Financial Statements and Internal Control over Financial Reporting\n\nWe have audited the accompanying consolidated balance sheets of W. P. Carey Inc. and its subsidiaries (the “Company”) as of December 31, 2025 and 2024, and the related consolidated statements of income, of comprehensive income, of equity and of cash flows for each of the three years in the period ended December 31, 2025, including the related notes and financial statement schedules listed in the accompanying index (collectively referred to as the “consolidated financial statements”). We also have audited the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).\n\nIn our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the COSO.\n\nBasis for Opinions\n\nThe Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.\n\nWe conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.\n\nOur audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.\n\nDefinition and Limitations of Internal Control over Financial Reporting\n\nA company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.\n\nW. P. Carey 2025 10-K – 47\n\nBecause of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.\n\nCritical Audit Matters\n\nThe critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.\n\nPurchase Price Allocation for Asset Acquisitions\n\nAs described in Notes 2 and 5 to the consolidated financial statements, the Company completed real estate acquisitions for total consideration of $1.7 billion during the year ended December 31, 2025. For acquired properties with leases classified as operating leases, management allocates the purchase price to the tangible and intangible assets and liabilities based on their estimated fair values. Management determines the fair value of land under the sales comparison (or market) approach. Management determines the fair value of real estate under the income approach using either the discounted cash flow method or the direct capitalization method. For the discounted cash flow method, the fair value of real estate is determined (i) by applying a discounted cash flow analysis to the estimated net operating income for each property in the portfolio during the remaining anticipated lease term and (ii) by the estimated residual value, which is based on a hypothetical sale of the property upon expiration of a lease factoring in the re-tenanting of such property at estimated market rental rates, and applying a selected capitalization rate. For the direct capitalization method, the fair value of real estate is determined (i) by the stabilized estimated net operating income for each property in the portfolio and (ii) a selected capitalization rate. For any acquisitions that do not qualify as sale-leaseback transactions, management records above- and below-market lease intangible assets and liabilities for acquired properties based on the present value, using a discount rate reflecting the risks associated with the leases acquired. For acquired properties with tenants in place, management records in-place lease intangible assets based on the estimated value ascribed to the avoidance of costs of leasing the properties for the remaining primary in-place lease terms. The principal considerations for our determination that performing procedures relating to the purchase price allocation for acquisitions is a critical audit matter are (i) the significant judgment by management when developing the estimated fair value of tangible and intangible assets and liabilities to allocate the purchase price; (ii) a high degree of auditor judgment, subjectivity and effort in performing procedures and evaluating management’s significant assumptions related to land values used in the sales comparison approach for land, capitalization rates, market rental rates and discount rates used in the discounted cash flow method for tangible and intangible assets and capitalization rates and market rental rates used in the direct capitalization method for tangible and intangible assets; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge. Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to purchase price allocations for acquisitions, including controls over management’s development of the estimated fair value of the land and tangible and intangible assets and liabilities and controls over the review of significant assumptions related to land values, capitalization rates, market rental rates and discount rates. These procedures also included, among others, for a sample of acquisitions (i) reading the executed purchase agreements and leasing documents; (ii) testing management’s process for developing the estimated fair value of land and tangible and intangible assets and liabilities; (iii) evaluating the appropriateness of the sales comparison approach, discounted cash flow and direct capitalization methods; (iv) testing the completeness and accuracy of underlying data used in the sales comparison approach, discounted cash flow and direct capitalization methods; (v) evaluating the reasonableness of the significant assumptions used by management related to land values used in the sales comparison approach for land, capitalization rates, market rental rates and discount rates used in the discounted cash flow method for tangible and intangible assets and capitalization rates and market rental rates used in the direct capitalization method for tangible and intangible assets. Professionals with specialized skill and knowledge were used to assist in evaluating the reasonableness of the significant assumptions related to land values, discount rates, capitalization rates and market rental rates.\n\n/s/ PricewaterhouseCoopers LLP\n\nNew York, New York\n\nFebruary 11, 2026\n\nWe have served as the Company’s auditor since 1973, which includes periods before the Company became subject to SEC reporting requirements.\n\nW. P. Carey 2025 10-K – 48\n\nW. P. CAREY INC. \n\nCONSOLIDATED BALANCE SHEETS\n\n(in thousands, except share and per share amounts)\n\nDecember 31,\n\n20252024\n\nAssets\n\nInvestments in real estate:\n\nLand, buildings and improvements — net lease and other$14,451,306 $12,842,869 \n\nLand, buildings and improvements — operating properties286,079 1,198,676 \n\nNet investments in finance leases and loans receivable1,171,886 798,259 \n\nIn-place lease intangible assets and other\n2,466,199 2,297,572 \n\nAbove-market rent intangible assets\n668,707 665,495 \n\nInvestments in real estate19,044,177 17,802,871 \n\nAccumulated depreciation and amortization(3,578,330)(3,222,396)\n\nAssets held for sale, net3,327 — \n\nNet investments in real estate15,469,174 14,580,475 \n\nEquity method investments310,178 301,115 \n\nCash and cash equivalents\n155,329 640,373 \n\nOther assets, net1,068,480 1,045,218 \n\nGoodwill987,071 967,843 \n\nTotal assets (a)\n$17,990,232 $17,535,024 \n\nLiabilities and Equity\n\nDebt:\n\nSenior unsecured notes, net\n$6,950,261 $6,505,907 \n\nUnsecured term loans, net1,196,366 1,075,826 \n\nUnsecured revolving credit facility435,417 55,448 \n\nNon-recourse mortgages, net140,646 401,821 \n\nDebt, net8,722,690 8,039,002 \n\nAccounts payable, accrued expenses and other liabilities670,038 596,994 \n\nBelow-market rent intangible liabilities, net104,055 119,831 \n\nDeferred income taxes\n151,820 147,461 \n\nDividends payable207,487 197,612 \n\nTotal liabilities (a)\n9,856,090 9,100,900 \n\nCommitments and contingencies ([Note 12](#i52e238857d8641668248158c9abdf12c_157))\n\nPreferred stock, $0.001 par value, 50,000,000 shares authorized; none issued\n— — \n\nCommon stock, $0.001 par value, 450,000,000 shares authorized; 219,145,876 and 218,848,844 shares, respectively, issued and outstanding\n219 219 \n\nAdditional paid-in capital11,830,737 11,805,179 \n\nDistributions in excess of accumulated earnings(3,539,592)(3,203,974)\n\nDeferred compensation obligation80,239 78,503 \n\nAccumulated other comprehensive loss(253,346)(250,232)\n\nTotal stockholders’ equity8,118,257 8,429,695 \n\nNoncontrolling interests15,885 4,429 \n\nTotal equity8,134,142 8,434,124 \n\nTotal liabilities and equity$17,990,232 $17,535,024 \n\n__________\n\n(a)See [Note 2](#i52e238857d8641668248158c9abdf12c_118) for details related to variable interest entities (“VIEs”).\n\nSee Notes to Consolidated Financial Statements.\n\nW. P. Carey 2025 10-K – 49\n\nW. P. CAREY INC. \n\nCONSOLIDATED STATEMENTS OF INCOME\n\n(in thousands, except share and per share amounts)\n\nYears Ended December 31,\n\n202520242023\n\nRevenues\n\nReal Estate:\n\nLease revenues$1,479,204 $1,331,788 $1,427,376 \n\nIncome from finance leases and loans receivable90,948 73,262 107,173 \n\nOperating property revenues112,531 146,813 180,257 \n\nOther lease-related income24,561 20,334 23,333 \n\n1,707,244 1,572,197 1,738,139 \n\nInvestment Management:\n\nAsset management revenue4,957 6,597 2,184 \n\nOther advisory income and reimbursements4,284 4,224 1,035 \n\n9,241 10,821 3,219 \n\n1,716,485 1,583,018 1,741,358 \n\nOperating Expenses\n\nDepreciation and amortization521,127 487,724 574,212 \n\nGeneral and administrative100,672 98,969 96,395 \n\nImpairment charges — real estate70,367 43,595 86,411 \n\nReimbursable tenant costs68,743 55,975 81,939 \n\nOperating property expenses60,177 70,866 95,141 \n\nProperty expenses, excluding reimbursable tenant costs53,825 49,677 44,451 \n\nStock-based compensation expense39,894 40,894 34,504 \n\nMerger and other expenses2,247 4,457 4,954 \n\n917,052 852,157 1,018,007 \n\nOther Income and Expenses\n\nInterest expense(291,256)(277,367)(291,852)\n\nOther gains and (losses)(232,107)(137,988)(36,184)\n\nGain on sale of real estate, net193,793 74,822 315,984 \n\nEarnings from equity method investments18,009 17,926 19,575 \n\nNon-operating income16,951 52,236 21,442 \n\nGain on change in control of interests— 31,849 — \n\n(294,610)(238,522)28,965 \n\nIncome before income taxes504,823 492,339 752,316 \n\nProvision for income taxes(31,908)(31,709)(44,052)\n\nNet Income472,915 460,630 708,264 \n\nNet (income) loss attributable to noncontrolling interests(6,556)209 70 \n\nNet Income Attributable to W. P. Carey$466,359 $460,839 $708,334 \n\nBasic Earnings Per Share$2.11 $2.09 $3.29 \n\nDiluted Earnings Per Share$2.11 $2.09 $3.28 \n\nWeighted-Average Shares Outstanding\n\nBasic220,501,239 220,168,325 215,369,777 \n\nDiluted221,112,343 220,520,457 215,760,496 \n\nSee Notes to Consolidated Financial Statements.\n\nW. P. Carey 2025 10-K – 50\n\nW. P. CAREY INC.\n\nCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME\n\n(in thousands) \n\n Years Ended December 31,\n\n 202520242023\n\nNet Income$472,915 $460,630 $708,264 \n\nOther Comprehensive (Loss) Income\n\nUnrealized (loss) gain on derivative instruments(35,728)10,624 (26,429)\n\nForeign currency translation adjustments32,943 (6,281)19,758 \n\nForeign currency translation adjustments derecognized in connection with the Spin-Off— — 35,664 \n\n(2,785)4,343 28,993 \n\nComprehensive Income470,130 464,973 737,257 \n\nAmounts Attributable to Noncontrolling Interests\n\nNet (income) loss(6,556)209 70 \n\nForeign currency translation adjustments(329)292 (80)\n\nComprehensive (income) loss attributable to noncontrolling interests(6,885)501 (10)\n\nComprehensive Income Attributable to W. P. Carey$463,245 $465,474 $737,247 \n\n \n\nSee Notes to Consolidated Financial Statements.\n\nW. P. Carey 2025 10-K – 51\n\nW. P. CAREY INC.\n\nCONSOLIDATED STATEMENTS OF EQUITY\n\n(in thousands, except share and per share amounts)\n\nW. P. Carey Stockholders\n\nDistributionsAccumulated\n\nCommon StockAdditionalin Excess ofDeferredOtherTotal\n\n$0.001 Par ValuePaid-inAccumulatedCompensationComprehensiveW. P. CareyNoncontrolling\n\nSharesAmountCapitalEarningsObligationLossStockholdersInterestsTotal\n\nBalance at January 1, 2025218,848,844 $219 $11,805,179 $(3,203,974)$78,503 $(250,232)$8,429,695 $4,429 $8,434,124 \n\nShares issued upon delivery of vested restricted share awards293,495 — (14,873)(14,873)(14,873)\n\nShares issued upon purchases under employee share purchase plan3,537 — 203 203 203 \n\nAmortization of stock-based compensation expense39,894 39,894 39,894 \n\nDeferral of vested shares, net(2,264)2,264 — — \n\nDividends declared ($3.620 per share)\n2,598 (801,977)(528)(799,907)(799,907)\n\nNet income466,359 466,359 6,556 472,915 \n\nContributions from noncontrolling interests ([Note 6](#i52e238857d8641668248158c9abdf12c_139))\n— 8,766 8,766 \n\nDistributions to noncontrolling interests— (7,563)(7,563)\n\nNon-cash contributions from noncontrolling interests ([Note 6](#i52e238857d8641668248158c9abdf12c_139))\n— 3,872 3,872 \n\nNon-cash write-off of noncontrolling interest in connection with a disposition— (504)(504)\n\nOther comprehensive loss:\n\nUnrealized loss on derivative instruments(35,728)(35,728)(35,728)\n\nForeign currency translation adjustments32,614 32,614 329 32,943 \n\nBalance at December 31, 2025219,145,876 $219 $11,830,737 $(3,539,592)$80,239 $(253,346)$8,118,257 $15,885 $8,134,142 \n\n(Continued)\n\nW. P. Carey 2025 10-K – 52\n\nW. P. CAREY INC.\n\nCONSOLIDATED STATEMENTS OF EQUITY\n\n(Continued)\n\n(in thousands, except share and per share amounts)\n\nW. P. Carey Stockholders\n\nDistributionsAccumulated\n\nCommon StockAdditionalin Excess ofDeferredOtherTotal\n\n$0.001 Par ValuePaid-inAccumulatedCompensationComprehensiveW. P. CareyNoncontrolling\n\nSharesAmountCapitalEarningsObligationLossStockholdersInterestsTotal\n\nBalance at January 1, 2024\n218,671,874 $219 $11,784,461 $(2,891,424)$62,046 $(254,867)$8,700,435 $6,562 $8,706,997 \n\nShares issued upon delivery of vested restricted share awards171,705 — (6,950)(6,950)(6,950)\n\nShares issued upon purchases under employee share purchase plan\n5,265 — 268 268 268 \n\nAmortization of stock-based compensation expense40,894 40,894 40,894 \n\nDeferral of vested shares, net(14,543)14,543 — — \n\nDividends declared ($3.490 per share)\n1,049 (773,389)1,914 (770,426)(770,426)\n\nNet income460,839 460,839 (209)460,630 \n\nDistributions to noncontrolling interests— (2,255)(2,255)\n\nContributions from noncontrolling interests— 623 623 \n\nOther comprehensive income:\n\nUnrealized gain on derivative instruments10,624 10,624 10,624 \n\nForeign currency translation adjustments(5,989)(5,989)(292)(6,281)\n\nBalance at December 31, 2024218,848,844 $219 $11,805,179 $(3,203,974)$78,503 $(250,232)$8,429,695 $4,429 $8,434,124 \n\n(Continued)\n\nW. P. Carey 2025 10-K – 53\n\nW. P. CAREY INC.\n\nCONSOLIDATED STATEMENTS OF EQUITY\n\n(Continued)\n\n(in thousands, except share and per share amounts)\n\nW. P. Carey Stockholders\n\nDistributionsAccumulated\n\nCommon StockAdditionalin Excess ofDeferredOtherTotal\n\n$0.001 Par ValuePaid-inAccumulatedCompensationComprehensiveW. P. CareyNoncontrolling\n\nSharesAmountCapitalEarningsObligationLossStockholdersInterestsTotal\n\nBalance at January 1, 2023\n210,620,949 $211 $11,706,836 $(2,486,633)$57,012 $(283,780)$8,993,646 $14,998 $9,008,644 \n\nShares issued under forward equity, net7,826,840 8 633,834 633,842 633,842 \n\nShares issued upon delivery of vested restricted share awards218,266 — (13,679)(13,679)(13,679)\n\nShares issued upon purchases under employee share purchase plan\n5,819 — 347 347 347 \n\nDistributions in connection with the Spin-Off ([Note 3](#i52e238857d8641668248158c9abdf12c_121))\n(578,818)(229,712)35,664 (772,866)(4,406)(777,272)\n\nAmortization of stock-based compensation expense34,504 34,504 34,504 \n\nDeferral of vested shares, net(4,521)4,521 — — \n\nAcquisition of noncontrolling interests3,663 3,663 (3,663)— \n\nDividends declared ($4.067 per share)\n2,295 (883,413)513 (880,605)(880,605)\n\nNet income708,334 708,334 (70)708,264 \n\nDistributions to noncontrolling interests— (3,263)(3,263)\n\nContributions from noncontrolling interests— 2,886 2,886 \n\nOther comprehensive loss:\n\nUnrealized loss on derivative instruments(26,429)(26,429)(26,429)\n\nForeign currency translation adjustments19,678 19,678 80 19,758 \n\nBalance at December 31, 2023218,671,874 $219 $11,784,461 $(2,891,424)$62,046 $(254,867)$8,700,435 $6,562 $8,706,997 \n\nSee Notes to Consolidated Financial Statements.\n\nW. P. Carey 2025 10-K – 54\n\nW. P. CAREY INC.\n\nCONSOLIDATED STATEMENTS OF CASH FLOWS\n\n(in thousands)\n\nYears Ended December 31,\n\n202520242023\n\nCash Flows — Operating Activities\n\nNet income$472,915 $460,630 $708,264 \n\nAdjustments to net income:\n\nDepreciation and amortization, including intangible assets and deferred financing costs537,645 507,101 594,166 \n\nNet realized and unrealized losses on equity securities, foreign currency exchange rate movements, extinguishment of debt, and other204,439 120,962 9,059 \n\nGain on sale of real estate, net(193,793)(74,822)(315,984)\n\nStraight-line rent adjustments\n(78,374)(83,094)(75,435)\n\nImpairment charges — real estate70,367 43,595 86,411 \n\nStock-based compensation expense39,894 40,894 34,504 \n\nIncrease in allowance for credit losses27,186 27,629 29,074 \n\nEarnings from equity method investments(18,009)(17,926)(19,575)\n\nDistributions of earnings from equity method investments\n15,942 21,066 18,588 \n\nDeferred income tax benefit(10,885)(4,245)(199)\n\nAmortization of rent-related intangibles and deferred rental revenue5,986 24,477 33,958 \n\nGain on change in control of interests— (31,849)— \n\nGain on repayment of secured loan receivable— (10,650)— \n\nProceeds from sales of net investments in sales-type leases200,168 806,812 — \n\nNet changes in other operating assets and liabilities8,838 2,532 (29,399)\n\nNet Cash Provided by Operating Activities1,282,319 1,833,112 1,073,432 \n\nCash Flows — Investing Activities\n\nPurchases of real estate (1,657,339)(1,128,809)(1,211,397)\n\nProceeds from sales of real estate1,280,180 409,487 446,402 \n\nInvestments in loans receivable(399,819)(270,380)— \n\nFunding for real estate construction, redevelopments, and other capital expenditures on real estate(191,213)(135,327)(121,625)\n\nValue added taxes refunded in connection with acquisition of real estate47,731 34,801 13,795 \n\nValue added taxes paid in connection with acquisition of real estate(45,647)(56,509)(20,532)\n\nOther investing activities, net8,820 4,579 (12,791)\n\nReturn of capital from equity method investments\n5,317 1,026 10,484 \n\nPurchase of equity investment(5,000)— — \n\nCapital contributions to equity method investments\n(3,170)(16,760)(38,219)\n\nProceeds from repayment of loans receivable— 24,000 28,000 \n\nNet Cash Used in Investing Activities(960,140)(1,133,892)(905,883)\n\nCash Flows — Financing Activities\n\nProceeds from Unsecured Revolving Credit Facility3,115,158 1,229,189 2,551,578 \n\nRepayments of Unsecured Revolving Credit Facility(2,739,777)(1,566,439)(2,439,754)\n\nDividends paid(790,032)(765,146)(916,530)\n\nRepayment of Senior Unsecured Notes(450,000)(1,044,500)— \n\nProceeds from issuance of Senior Unsecured Notes396,352 1,725,886 — \n\nPayments of mortgage principal(274,572)(231,506)(396,730)\n\nRepayments of Unsecured Term Loans(90,224)— — \n\nProceeds from Unsecured Term Loans86,224 — 542,330 \n\nPayments for withholding taxes upon delivery of equity-based awards(14,873)(6,950)(13,679)\n\nContributions from noncontrolling interests8,767 623 2,886 \n\nDistributions to noncontrolling interests(7,563)(2,255)(3,263)\n\nPayment of financing costs(4,278)(14,559)(13,875)\n\nOther financing activities, net3,108 (12,811)1,929 \n\nProceeds from shares issued under forward equity, net of selling costs— — 633,785 \n\nProceeds in connection with the Spin-Off— — 343,885 \n\nNet Cash (Used in) Provided by Financing Activities(761,710)(688,468)292,562 \n\nChange in Cash and Cash Equivalents and Restricted Cash During the Year\n\nEffect of exchange rate changes on cash and cash equivalents and restricted cash21,222 (12,022)7,719 \n\nNet (decrease) increase in cash and cash equivalents and restricted cash(418,309)(1,270)467,830 \n\nCash and cash equivalents and restricted cash, beginning of year690,701 691,971 224,141 \n\nCash and cash equivalents and restricted cash, end of year$272,392 $690,701 $691,971 \n\n (Continued)\n\nW. P. Carey 2025 10-K – 55\n\nW. P. CAREY INC.\n\nCONSOLIDATED STATEMENTS OF CASH FLOWS\n\n(Continued)\n\nSupplemental Non-Cash Investing and Financing Activities:\n\n2023 — On November 1, 2023, we completed the Spin-Off (as defined herein) ([Note 3](#i52e238857d8641668248158c9abdf12c_121)). The following table summarizes non-cash assets, liabilities, and equity derecognized in connection with the Spin-Off and provides a reconciliation to cash proceeds from the Spin-Off (in thousands):\n\nImpact of the Spin-Off \n\nTotal assets derecognized (excluding cash and cash equivalents and restricted cash)$1,361,616 \n\nTotal liabilities and equity derecognized(438,913)\n\nTotal non-cash assets, liabilities, and equity derecognized922,703 \n\nReduction to Additional paid-in capital(578,818)\n\nProceeds in connection with the Spin-Off$343,885 \n\nSee Notes to Consolidated Financial Statements.\n\nW. P. Carey 2025 10-K – 56\n\nW. P. CAREY INC.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\nNote 1. Business and Organization\n\n \n\nW. P. Carey Inc. (“W. P. Carey” or the “Company”) is a real estate investment trust (“REIT”) that, together with our consolidated subsidiaries, invests primarily in operationally-critical, single-tenant commercial real estate properties located in the United States and Europe that are leased on a long-term basis. We earn revenue principally by leasing the properties we own to companies on a triple-net lease basis, which generally requires each tenant to pay the costs associated with operating and maintaining the property.\n\nFounded in 1973, our shares of common stock are listed on the New York Stock Exchange under the symbol “WPC.”\n\nWe elected to be taxed as a REIT under Section 856 through 860 of the Internal Revenue Code effective as of February 15, 2012. As a REIT, we are not subject to federal income taxes on income and gains that we distribute to our stockholders as long as we satisfy certain requirements, principally relating to the nature of our income and the level of our distributions, as well as other factors. We also own real property in jurisdictions outside the United States through foreign subsidiaries and are subject to income taxes on our pre-tax income earned from properties in such countries.\n\nIn September 2023, we announced a plan to exit the office assets within our portfolio by (i) spinning-off 59 office properties into Net Lease Office Properties (“NLOP”), so that it became a separate publicly-traded real estate investment trust (the “Spin-Off”), and (ii) implementing an asset sale program to dispose of certain office properties retained by us (the “Office Sale Program”), which was completed in 2024.\n\nOn November 1, 2023, we completed the Spin-Off, contributing 59 office properties to NLOP ([Note 3](#i52e238857d8641668248158c9abdf12c_121)). Following the closing of the Spin-Off, NLOP operates as a separate publicly-traded REIT, which we externally manage pursuant to certain advisory agreements (the “NLOP Advisory Agreements”).\n\nAt December 31, 2025, we were the advisor to Carey European Student Housing Fund I, L.P. (“CESH”), a limited partnership formed for the purpose of developing, owning, and operating student housing properties in Europe ([Note 4](#i52e238857d8641668248158c9abdf12c_130)).\n\nWe operate as one reportable segment. Our business is characterized as investing primarily in operationally-critical, single-tenant commercial real estate properties that are principally leased on a long-term basis. These economic characteristics are similar across various property types, geographic locations, and industries in which our tenants operate and therefore considered one operating segment ([Note 17](#i52e238857d8641668248158c9abdf12c_178)). Our consolidated operating results, including net income, are regularly reviewed, in the aggregate, by our chief operating decision maker (“CODM”) to evaluate performance and allocate resources, which can be found on our consolidated financial statements. The CODM is our Chief Executive Officer.\n\nLease revenues from our real estate investments generate the vast majority of our earnings. We invest primarily in commercial properties located in the United States and Europe, which are leased to companies on a triple-net lease basis. At December 31, 2025, our portfolio was comprised of our full or partial ownership interests in 1,682 properties, totaling approximately 183 million square feet, substantially all of which were net leased to 371 tenants, with a weighted-average lease term of 12.0 years and an occupancy rate of 98.0%. In addition, at December 31, 2025, our portfolio was comprised of 16 operating properties, including 11 self-storage properties, four hotels, and one student housing property, totaling approximately 1.3 million square feet. All references to number of properties, square footage, occupancy, and industry type are unaudited.\n\nNote 2. Summary of Significant Accounting Policies\n\nCritical Accounting Policies and Estimates\n\nAccounting for Acquisitions\n\nIn accordance with the guidance for business combinations, we determine whether a transaction or other event is a business combination, which requires that the assets acquired and liabilities assumed constitute a business. If the assets acquired are not a business, we account for the transaction or other event as an asset acquisition. Under both methods, we recognize the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquired entity. In addition, for transactions that are business combinations, we evaluate the existence of goodwill or a gain from a bargain purchase. We\n\nW. P. Carey 2025 10-K – 57\n\nNotes to Consolidated Financial Statements\n\ncapitalize acquisition-related costs and fees associated with asset acquisitions. We immediately expense acquisition-related costs and fees associated with business combinations. All transaction costs incurred during the reporting period were capitalized since our acquisitions were classified as asset acquisitions.\n\n \n\nPurchase Price Allocation of Tangible Assets — When we acquire properties with leases classified as operating leases, we allocate the purchase price to the tangible and intangible assets and liabilities acquired based on their estimated fair values. The tangible assets consist of land, buildings, and site improvements. The intangible assets include the above- and below-market value of leases and the in-place leases, which includes the value of tenant relationships. Land is typically valued utilizing the sales comparison (or market) approach. Buildings are valued, as if vacant, using the cost and/or income approach. Under the cost approach, the fair value of real estate is based on estimated costs to construct a vacant building with similar characteristics. Under the income approach, we use either the discounted cash flow method or the direct capitalization method. For the discounted cash flow method, the fair value of real estate is determined (i) by applying a discounted cash flow analysis to the estimated net operating income for each property in the portfolio during the remaining anticipated lease term and (ii) by the estimated residual value, which is based on a hypothetical sale of the property upon expiration of a lease factoring in the re-tenanting of such property at estimated market rental rates, and applying a selected capitalization rate. For the direct capitalization method, the fair value of real estate is determined (i) by the stabilized estimated net operating income for each property in the portfolio and (ii) a selected capitalization rate.\n\nAssumptions used in the model are property-specific where this information is available; however, when certain necessary information is not available, we use available regional and property-type information. Assumptions and estimates include the following:\n\n•a discount rate or internal rate of return;\n\n•market rents, growth factors of rents, and market lease term;\n\n•capitalization rates to be applied to an estimate of market rent at the beginning and/or the end of the market lease term;\n\n•the marketing period necessary to put a lease in place;\n\n•carrying costs during the marketing period; and\n\n•leasing commissions and tenant improvement allowances.\n\nThe discount rates and residual capitalization rates used to value the properties are selected based on several factors, including:\n\n•the creditworthiness of the lessees;\n\n•industry surveys;\n\n•property type;\n\n•property location and age;\n\n•current lease rates relative to market lease rates; and\n\n•anticipated lease duration.\n\nIn the case where a tenant has a purchase option deemed to be favorable to the tenant, or the tenant has long-term renewal options at rental rates below estimated market rental rates, we generally include the value of the exercise of such purchase option or long-term renewal options in the determination of residual value.\n\nThe remaining economic life of leased assets is estimated by relying in part upon third-party appraisals of the leased assets and industry standards. Different estimates of remaining economic life will affect the depreciation expense that is recorded.\n\nPurchase Price Allocation of Intangible Assets and Liabilities — For acquired properties that do not qualify as sale-leaseback transactions, we record above- and below-market lease intangible assets and liabilities for acquired properties based on the present value (using a discount rate reflecting the risks associated with the leases acquired including consideration of the credit of the lessee) of the difference between (i) the contractual rents to be paid pursuant to the leases negotiated or in place at the time of acquisition of the properties and (ii) our estimate of fair market lease rates for the property or equivalent property, both of which are measured over the estimated lease term, which includes renewal options that have rental rates below estimated market rental rates. We discount the difference between the estimated market rent and contractual rent to a present value using an interest rate reflecting our current assessment of the risk associated with the lease acquired, which includes a consideration of the credit of the lessee. When we enter into sale-leaseback transactions with above- or below-market leases, the intangibles will be accounted for as loan receivables or prepaid rent liabilities, respectively. We measure the fair value of below-market purchase option liabilities we acquire as the excess of the present value of the fair value of the real estate over the present value\n\nW. P. Carey 2025 10-K – 58\n\nNotes to Consolidated Financial Statements\n\nof the tenant’s exercise price at the option date. We determine these values using our estimates or by relying in part upon third-party valuations conducted by independent appraisal firms.\n\nWe amortize the above-market lease intangible as a reduction of lease revenue over the remaining contractual lease term. We amortize the below-market lease intangible as an increase to lease revenue over the initial term and any renewal periods in the respective leases. We include the value of below-market leases in Below-market rent intangible liabilities in the consolidated financial statements.\n\nFor acquired properties with tenants in place, we record in-place lease intangible assets based on the estimated value ascribed to the avoidance of costs of leasing the properties for the remaining primary in-place lease terms. The cost avoidance is derived first by determining the in-place lease term on the subject lease. Then, based on our review of the market, the cost to be borne by a property owner to replicate a market lease to the remaining in-place term is estimated. These costs consist of: (i) rent lost during downtime (i.e., assumed periods of vacancy), (ii) estimated expenses that would be incurred by the property owner during periods of vacancy, (iii) rent concessions (i.e., free rent), (iv) leasing commissions, and (v) tenant improvements allowances given to tenants. We determine these values using our estimates or by relying in part upon third-party valuations. We amortize the value of in-place lease intangibles to depreciation and amortization expense over the remaining initial term of each lease. The amortization period for intangibles does not exceed the remaining depreciable life of the building.\n\nIf a lease is terminated, we charge the unamortized portion of above- and below-market lease values to rental income and in-place lease values to amortization expense. If a lease is amended, we will determine whether the economics of the amended lease continue to support the existence of the above- or below-market lease intangibles.\n\nPurchase Price Allocation of Debt — When we acquire leveraged properties, the fair value of the related debt instruments is determined using a discounted cash flow model with rates that take into account the credit of the tenants, where applicable, and interest rate risk. Such resulting premium or discount is amortized over the remaining term of the obligation. We also consider the value of the underlying collateral, taking into account the quality of the collateral, the credit quality of the tenant, the time until maturity and the current interest rate.\n\nPurchase Price Allocation of Goodwill — In the case of a business combination, after identifying all tangible and intangible assets and liabilities, the excess consideration paid over the fair value of the assets and liabilities acquired and assumed, respectively, represents goodwill. In the event we dispose of a property or an investment that constitutes a business under U.S. generally accepted accounting principles (“GAAP”) from a property with goodwill, we allocate a portion of the property’s goodwill to that business in determining the gain or loss on the disposal of the business. The amount of goodwill allocated to the business is based on the relative fair value of the business to the fair value of the property. As part of purchase accounting for a business, we record any deferred tax assets and/or liabilities resulting from the difference between the tax basis and GAAP basis of the investment in the taxing jurisdiction. Such deferred tax amount will be included in purchase accounting and may impact the amount of goodwill recorded depending on the fair value of all of the other assets and liabilities and the amounts paid.\n\nFinancing Arrangements — In accordance with Accounting Standards Codification (“ASC”) 310, Receivables and ASC 842, Leases, real estate assets acquired through a sale-leaseback transaction are accounted for as a financing arrangement if the investment does not meet the criteria for sale-leaseback accounting. We record such investments within Net investments in finance leases and loans receivable on the consolidated balance sheets. Rent payments from these investments are included within Income from finance leases and loans receivable on the consolidated statements of income.\n\nImpairments\n\n \n\nReal Estate — We periodically assess whether there are any indicators that the value of our long-lived real estate and related intangible assets may be impaired or that their carrying value may not be recoverable. These impairment indicators include, but are not limited to, vacancies, an upcoming lease expiration, a tenant with credit difficulty, the termination of a lease by a tenant, or a likely disposition of the property.\n\nW. P. Carey 2025 10-K – 59\n\nNotes to Consolidated Financial Statements\n\nFor real estate assets held for investment and related intangible assets in which an impairment indicator is identified, we follow a two-step process to determine whether an asset is impaired and to determine the amount of the charge. First, we compare the carrying value of the property’s asset group to the estimated future net undiscounted cash flow that we expect the property’s asset group will generate, including any estimated proceeds from the eventual sale of the property’s asset group. The undiscounted cash flow analysis requires us to make our best estimate of market rents, residual values, and holding periods. We estimate market rents and residual values using market information from outside sources such as third-party market research, external appraisals, broker quotes, or recent comparable sales.\n\nAs our investment objective is to hold properties on a long-term basis, holding periods used in the undiscounted cash flow analysis are generally ten years, but may be less if our intent is to hold a property for less than ten years. Depending on the assumptions made and estimates used, the future cash flow projected in the evaluation of long-lived assets and associated intangible assets can vary within a range of outcomes. We consider the likelihood of possible outcomes in determining our estimate of future cash flows and, if warranted, we apply a probability-weighted method to the different possible scenarios. If the future net undiscounted cash flow of the property’s asset group is less than the carrying value, the carrying value of the property’s asset group is considered not recoverable. We then measure the impairment loss as the excess of the carrying value of the property’s asset group over its estimated fair value.\n\nAssets Held for Sale — We generally classify real estate assets that are subject to operating leases as held for sale when we have entered into a contract to sell the property, all material due diligence requirements have been satisfied, we received a non-refundable deposit, and we believe it is probable that the disposition will occur within one year. When we classify an asset as held for sale, we compare the asset’s fair value less estimated cost to sell to its carrying value, and if the fair value less estimated cost to sell is less than the property’s carrying value, we reduce the carrying value to the fair value less estimated cost to sell. We will continue to review the property for subsequent changes in the fair value, and may recognize a loss on sale of real estate, if warranted.\n\nEquity Method Investments — We evaluate our equity method investments on a periodic basis to determine if there are any indicators that the value of our equity investment may be impaired and whether or not that impairment is other-than-temporary. To the extent an impairment has occurred and is determined to be other-than-temporary, we measure the charge as the excess of the carrying value of our investment over its estimated fair value, which is determined by calculating our share of the estimated fair market value of the underlying net assets based on the terms of the applicable partnership or joint-venture agreement. For our equity method investments, we calculate the estimated fair value of the underlying investment’s real estate as described in Real Estate above. The fair value of the underlying investment’s debt, if any, is calculated based on market interest rates and other market information. The fair value of the underlying investment’s other financial assets and liabilities (excluding net investment in direct financing leases) have fair values that generally approximate their carrying values.\n\n \n\nGoodwill — We evaluate goodwill for possible impairment at least annually or upon the occurrence of a triggering event (for example, the Spin-Off ([Note 3](#i52e238857d8641668248158c9abdf12c_121), [Note 7](#i52e238857d8641668248158c9abdf12c_142))). To identify any impairment, we first assess qualitative factors to determine whether it is more likely than not that the fair value of the Company is less than its carrying value. This assessment is used as a basis to determine whether it is necessary to calculate fair value of the Company. We calculate the estimated fair value of the Company by utilizing our market capitalization. Impairments, if any, will be the difference between the Company’s fair value and carrying amount, not to exceed the carrying amount of goodwill.\n\nCredit Losses\n\nThe allowance for credit losses, which is recorded as a reduction to Net investments in finance leases and loans receivable on our consolidated balance sheets, is measured on a pool basis by credit ratings ([Note 6](#i52e238857d8641668248158c9abdf12c_139)), using a probability of default method based on the lessees’ respective credit ratings, the expected value of the underlying collateral upon its repossession, and our historical loss experience related to other direct financing leases. Included in our model are factors that incorporate forward-looking information. If we determine that a finance lease no longer shares risk characteristics with other finance leases in the pool, we evaluate the finance lease for expected credit losses on an individual basis. Allowance for credit losses is included in our consolidated statements of income within Other gains and (losses).\n\nW. P. Carey 2025 10-K – 60\n\nNotes to Consolidated Financial Statements\n\nOther Accounting Policies\n\nBasis of Consolidation — Our consolidated financial statements reflect all of our accounts, including those of our controlled subsidiaries. The portions of equity in consolidated subsidiaries that are not attributable, directly or indirectly, to us are presented as noncontrolling interests. All significant intercompany accounts and transactions have been eliminated.\n\nWhen we obtain an economic interest in an entity, we evaluate the entity to determine if it should be deemed a VIE and, if so, whether we are the primary beneficiary and are therefore required to consolidate the entity. We apply accounting guidance for consolidation of VIEs to certain entities in which the equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. Fixed price purchase and renewal options within a lease, as well as certain decision-making rights within a loan or joint-venture agreement, can cause us to consider an entity a VIE. Limited partnerships and other similar entities that operate as a partnership will be considered a VIE unless the limited partners hold substantive kick-out rights or participation rights. Significant judgment is required to determine whether a VIE should be consolidated. We review the contractual arrangements provided for in the partnership agreement or other related contracts to determine whether the entity is considered a VIE, and to establish whether we have any variable interests in the VIE. We then compare our variable interests, if any, to those of the other variable interest holders to determine which party is the primary beneficiary of the VIE based on whether the entity (i) has the power to direct the activities that most significantly impact the economic performance of the VIE and (ii) has the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. The liabilities of these VIEs are non-recourse to us and can only be satisfied from each VIE’s respective assets.\n\nDuring the year ended December 31, 2025, we had a net decrease of four entities classified as VIEs, primarily due to the completion of certain tax-deferred like-kind exchanges under Section 1031 of the Internal Revenue Code (“1031 Exchange”), the liquidation of an unconsolidated investment in equity securities, and the disposition of a consolidated joint venture, partially offset by committing to certain joint venture construction projects ([Note 6](#i52e238857d8641668248158c9abdf12c_139)).\n\nAt December 31, 2025 and 2024, we considered ten and 14 entities to be VIEs, respectively, of which we consolidated six and nine, respectively, as we are considered the primary beneficiary. The following table presents a summary of selected financial data of the consolidated VIEs included in our consolidated balance sheets (in thousands):\n\nDecember 31,\n\n20252024\n\nLand, buildings and improvements — net lease and other$31,861 $468,484 \n\nNet investments in finance leases and loans receivable178,076 144,103 \n\nIn-place lease intangible assets and other3,620 67,764 \n\nAbove-market rent intangible assets1,685 3,757 \n\nAccumulated depreciation and amortization(11,637)(19,391)\n\nTotal assets207,985 671,402 \n\nNon-recourse mortgages, net$— $47,853 \n\nBelow-market rent intangible liabilities, net— 25 \n\nTotal liabilities946 72,521 \n\nAt December 31, 2025 and 2024, our four and five unconsolidated VIEs, respectively, included our interests in (i) two unconsolidated real estate investments, which we account for under the equity method of accounting (we do not consolidate these entities because we are not the primary beneficiary and the nature of our involvement in the activities of these entities allows us to exercise significant influence on, but does not give us power over, decisions that significantly affect the economic performance of these entities), (ii) one and two unconsolidated investments in equity securities, respectively, which we accounted for as investments in shares of the entities at fair value, and (iii) one construction loan investment, which we accounted for as a secured loan receivable. As of December 31, 2025 and 2024, the net carrying amount of our investments in these entities was $477.5 million and $576.2 million, respectively, and our maximum exposure to loss in these entities was limited to our investments.\n\nW. P. Carey 2025 10-K – 61\n\nNotes to Consolidated Financial Statements\n\nLeases\n\nAs a Lessee: Right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments under the lease. We determine if an arrangement contains a lease at contract inception and determine the classification of the lease at commencement. Operating and financing lease ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. We do not include renewal options in the lease term when calculating the lease liability unless we are reasonably certain we will exercise the option. Variable lease payments are excluded from the ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. Our variable lease payments consist of increases as a result of the Consumer Price Index (“CPI”) or other comparable indices, taxes, and maintenance costs. Lease expense for lease payments is recognized on a straight-line basis over the term of the lease. Below-market ground lease intangible assets and above-market ground lease intangible liabilities are included as a component of ROU assets. See [Note 5](#i52e238857d8641668248158c9abdf12c_133) for additional disclosures on the presentation of these amounts in our consolidated balance sheets.\n\nThe implicit rate within our operating leases is generally not determinable and, as a result, we use our incremental borrowing rate at the lease commencement date to determine the present value of lease payments. The determination of our incremental borrowing rate requires judgment. We determine our incremental borrowing rate for each lease using estimated baseline mortgage rates. These baseline rates are determined based on a review of current mortgage debt market activity for benchmark securities across domestic and international markets, utilizing a yield curve. The rates are then adjusted for various factors, including level of collateralization and lease term.\n\nAs a Lessor: We combine non-lease components (lease arrangements that include common area maintenance services) with related lease components (lease revenues), since both the timing and pattern of transfer are the same for the non-lease component and related lease component, the lease component is the predominant component, and the lease component would otherwise be classified as an operating lease. For (i) operating lease arrangements involving real estate that include common area maintenance services and (ii) all real estate arrangements that include real estate taxes and insurance costs, we present these amounts within lease revenues in our consolidated statements of income. We record amounts reimbursed by the lessee in the period in which the applicable expenses are incurred, if the reimbursements are deemed collectible.\n\nNet investments in sales-type leases are accounted for under ASC 842, Leases. Upon lease commencement or lease modification, we assess lease classification to determine whether the lease should be classified as an operating, direct financing, or sales-type lease. If the lease is determined to be a sales-type lease, we record a net investment in the lease, which is equal to the sum of the lease payments receivable and the unguaranteed residual value, discounted at the rate implicit in the lease. Any difference between the fair value of the asset and the net investment in the lease is considered a gain on sale of real estate and recognized upon execution of the lease.\n\nCash and Cash Equivalents — We consider all short-term, highly liquid investments that are both readily convertible to cash and have a maturity of three months or less at the time of purchase to be cash equivalents. Items classified as cash equivalents include commercial paper and money market funds. Our cash and cash equivalents are held in the custody of several financial institutions, and these balances, at times, exceed federally insurable limits. We seek to mitigate this risk by depositing funds only with major financial institutions.\n\nRestricted Cash — Restricted cash primarily consists of (i) security deposits and amounts required to be reserved pursuant to lender agreements for debt service, capital improvements, and real estate taxes, and (ii) funds designated for future 1031 Exchange transactions. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets to the consolidated statements of cash flows (in thousands):\n\nDecember 31,\n\n202520242023\n\nCash and cash equivalents\n$155,329 $640,373 $633,860 \n\nRestricted cash (a)\n117,063 50,328 58,111 \n\nTotal cash and cash equivalents and restricted cash\n$272,392 $690,701 $691,971 \n\n__________\n\n(a)Restricted cash is included within Other assets, net on our consolidated balance sheets. Amounts as of December 31, 2025 and 2024 include $80.9 million and $14.6 million, respectively, of proceeds from certain dispositions, which are held by an intermediary and have been designated for future 1031 Exchange transactions.\n\nW. P. Carey 2025 10-K – 62\n\nNotes to Consolidated Financial Statements\n\nReal Estate and Operating Real Estate — We carry land, buildings, and improvements at cost less accumulated depreciation. We capitalize costs that extend the useful life of properties or increase their value, while we expense maintenance and repairs that do not improve or extend the lives of the respective assets as incurred.\n\nGain/Loss on Sale — We recognize gains and losses on the sale of properties when the transaction meets the definition of a contract, criteria are met for the sale of one or more distinct assets, and control of the properties is transferred.\n\nInternal-Use Software Development Costs and Cloud Computing Arrangements — We expense costs associated with the assessment stage of software development projects. Upon completion of the preliminary project assessment stage, we capitalize internal and external costs associated with the application development stage. We expense the personnel-related costs of training and data conversion. We also expense costs associated with the post-implementation and operation stage, including maintenance and specified upgrades; however, we capitalize internal and external costs associated with significant upgrades to existing systems that result in additional functionality. Cloud computing arrangement costs follow the internal-use software accounting guidance to determine which implementation costs to capitalize as assets or expense as incurred. Capitalized internal-use software development costs are amortized on a straight-line basis over the software’s estimated useful life, which is three to seven years. Capitalized implementation costs related to a service contract will be amortized over the term of the hosting arrangement beginning when the component of the hosting arrangement is ready for its intended use. Periodically, we reassess the useful life considering technology, obsolescence, and other factors.\n\nOther Assets and Liabilities — We include prepaid expenses, straight-line rent receivables, tenant receivables, deferred charges, escrow balances held by lenders, restricted cash balances, marketable securities, derivative assets, other intangible assets, corporate fixed assets, our investment in shares of Lineage (a cold storage REIT) ([Note 9](#i52e238857d8641668248158c9abdf12c_148)), and office lease ROU assets in Other assets, net. We include derivative liabilities, amounts held on behalf of tenants, operating lease liabilities, and deferred revenue in Accounts payable, accrued expenses and other liabilities.\n\nInvestment in Shares of Lineage — We have elected to apply the measurement alternative under Accounting Standards Update (“ASU”) 2016-01, Financial Instruments — Overall (Subtopic 825-10) to account for our investment in 5,546,547 shares of Lineage, which is included in Other assets, net in the consolidated financial statements ([Note 9](#i52e238857d8641668248158c9abdf12c_148)). Under this alternative, the carrying value is adjusted for any impairments or changes in fair value resulting from observable transactions for similar or identical investments in the issuer. We transferred this investment from Level 3 to Level 2 within the fair value hierarchy during the third quarter of 2024 because Lineage became a publicly traded company during that period. Although its share price is actively traded on an open market, we make an adjustment to the value of our investment based on the promote value that the sponsor of our investment is entitled to. Since we were a legacy investor in Lineage prior to their public offering completed in July 2024, our ownership interest is subject to settlement at the discretion of Lineage over a three-year period, during which we will have the option to settle our investment in the form of cash or common stock. If our investment is not settled by Lineage during the three-year period, our investment will convert to common shares.\n\nRevenue Recognition, Real Estate Leased to Others — We lease real estate to others primarily on a triple-net leased basis, whereby the tenant is generally responsible for operating expenses relating to the property, including property taxes, insurance, maintenance, repairs, and improvements.\n\nSubstantially all of our leases provide for either scheduled rent increases, periodic rent adjustments based on formulas indexed to changes in the CPI or similar indices, or percentage rents. CPI-based adjustments are contingent on future events and are therefore not included as minimum rent in straight-line rent calculations. We recognize rents from percentage rents as reported by the lessees, which is after the level of sales requiring a rental payment to us is reached. Percentage rents were insignificant for the periods presented.\n\nFor our operating leases, we recognize future minimum rental revenue on a straight-line basis over the non-cancelable lease term of the related leases and charge expenses to operations as incurred ([Note 5](#i52e238857d8641668248158c9abdf12c_133)). We record leases accounted for under the direct financing method as a net investment in direct financing leases ([Note 6](#i52e238857d8641668248158c9abdf12c_139)). The net investment is equal to the cost of the leased assets. The difference between the cost and the gross investment, which includes the residual value of the leased asset and the future minimum rents, is unearned income. We defer and amortize unearned income to income over the lease term so as to produce a constant periodic rate of return on our net investment in the lease.\n\nW. P. Carey 2025 10-K – 63\n\nNotes to Consolidated Financial Statements\n\nRevenue from contracts under ASC 606, Revenue from Contracts with Customers is recognized when, or as, control of promised goods or services is transferred to customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. At contract inception, we assess the services promised in our contracts with customers and identify a performance obligation for each promise to transfer to the customer a good or service (or bundle of goods or services) that is distinct. To identify the performance obligations, we consider all of the services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices. ASC 606 does not apply to our lease revenues, which constitute a majority of our revenues, but primarily applies to revenues generated from our hotel operating properties and revenues earned from our affiliates ([Note 4](#i52e238857d8641668248158c9abdf12c_130)).\n\nRevenue from contracts primarily represented hotel operating property revenues of $37.6 million, $43.0 million, and $76.2 million for the years ended December 31, 2025, 2024, and 2023, respectively.\n\nSuch operating property revenues are primarily comprised of revenues from room rentals and from food and beverage services at our hotel operating properties during those years. We identified a single performance obligation for each distinct service. Performance obligations are typically satisfied at a point in time, at the time of sale, or at the rendering of the service. Fees are generally determined to be fixed. Payment is typically due immediately following the delivery of the service.\n\nRevenue Recognition, Investment Management Operations — We earn asset management revenue in connection with providing services to CESH and NLOP. We earn asset management revenue from property management, leasing, and advisory services performed.\n\nWe earn other advisory income and reimbursements from NLOP for certain administrative services, including day-to-day management services, investor relations, accounting, tax, legal, and other administrative matters, paid in cash.\n\nCESH reimburses us for certain personnel and overhead costs that we incur on their behalf. We record reimbursement income as the expenses are incurred, subject to limitations imposed by the advisory agreements. Revenue from contracts with affiliates under ASC 606 is discussed in [Note 4](#i52e238857d8641668248158c9abdf12c_130).\n\nAsset Retirement Obligations — Asset retirement obligations relate to the legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development, and/or normal operation of a long-lived asset. The fair value of a liability for an asset retirement obligation is recorded in the period in which it is incurred or at the point of acquisition of an asset with an assumed asset retirement obligation, and the cost of such liability is recorded as an increase in the carrying amount of the related long-lived asset by the same amount. The liability is accreted each period and the capitalized cost is depreciated over the estimated remaining life of the related long-lived asset. Revisions to estimated retirement obligations result in adjustments to the related capitalized asset and corresponding liability.\n\nIn order to determine the fair value of the asset retirement obligations, we make certain estimates and assumptions including, among other things, projected cash flows, the borrowing interest rate, and an assessment of market conditions that could significantly impact the estimated fair value. These estimates and assumptions are subjective.\n\nDepreciation — We compute depreciation of building and related improvements using the straight-line method over the estimated remaining useful lives of the properties (not to exceed 40 years) and furniture, fixtures, and equipment. We compute depreciation of tenant improvements using the straight-line method over the lesser of the remaining term of the lease or the estimated useful life.\n\nStock-Based Compensation — We have granted restricted share awards (“RSAs”), restricted share units (“RSUs”), and performance share units (“PSUs”) to certain employees, independent directors, and nonemployees. Grants were awarded in the name of the recipient subject to certain restrictions of transferability and a risk of forfeiture. Stock-based compensation expense for all equity-classified stock-based compensation awards is based on the grant date fair value estimated in accordance with current accounting guidance for share-based payments, which includes awards granted to certain nonemployees. We recognize these compensation costs for only those shares expected to vest on a straight-line basis over the requisite service or performance period of the award. We include stock-based compensation within Additional paid-in capital in the consolidated statements of equity and Stock-based compensation expense in the consolidated statements of income.\n\nW. P. Carey 2025 10-K – 64\n\nNotes to Consolidated Financial Statements\n\nForeign Currency Translation and Transaction Gains and Losses — We have interests in international real estate investments primarily in Europe, Canada, and Japan, and the primary functional currencies for those investments are the euro, the British pound sterling, the Danish krone, the Canadian dollar, and the Japanese yen. We perform the translation from these currencies to the U.S. dollar for assets and liabilities using current exchange rates in effect at the balance sheet date and for revenue and expense accounts using the average exchange rate during the month in which the transaction occurs. We report the gains and losses resulting from such translation as a component of other comprehensive income in equity. These translation gains and losses are fully reclassified out of foreign currency translation adjustments (within Accumulated other comprehensive loss in the consolidated balance sheets) and released to net income (within Gain on sale of real estate, net, in the consolidated statements of income) when we have substantially exited from all investments in the related currency. During the year ended December 31, 2025, we exited all investments denominated in Norwegian krone ([Note](#i52e238857d8641668248158c9abdf12c_160)[13](#i52e238857d8641668248158c9abdf12c_160), [Note 16](#i52e238857d8641668248158c9abdf12c_175)).\n\nA transaction gain or loss (measured from the transaction date or the most recent intervening balance sheet date, whichever is later), realized upon settlement of a foreign currency transaction generally will be included in net income for the period in which the transaction is settled. Also, foreign currency intercompany transactions that are scheduled for settlement, consisting primarily of accrued interest and the translation to the reporting currency of intercompany debt that is short-term or has scheduled principal payments, are included in the determination of net income (within Other gains and (losses) in the consolidated statements of income).\n\nThe translation impact of foreign currency transactions of a long-term nature (that is, settlement is not planned or anticipated in the foreseeable future), in which the entities involved in the transactions are consolidated or accounted for by the equity method in our consolidated financial statements, are not included in net income but are reported as a component of other comprehensive income in equity.\n\nDerivative Instruments — We measure derivative instruments at fair value and record them as assets or liabilities, depending on our rights or obligations under the applicable derivative contract. Derivatives that are not designated as hedges must be adjusted to fair value through earnings. For derivatives designated and that qualify as cash flow hedges, the change in fair value of the derivative is recognized in Other comprehensive income (loss) until the hedged transaction affects earnings. Gains and losses on the cash flow hedges representing hedge components excluded from the assessment of effectiveness are recognized in earnings over the life of the hedge on a systematic and rational basis, as documented at hedge inception in accordance with our accounting policy election. Such gains and losses are recorded within Other gains and (losses) or Interest expense in our consolidated statements of income. The earnings recognition of excluded components is presented in the same line item as the hedged transactions. For derivatives designated and that qualify as a net investment hedge, the change in the fair value and/or the net settlement of the derivative is reported in Other comprehensive income (loss) as part of the cumulative foreign currency translation adjustment. Amounts are reclassified out of Other comprehensive income (loss) into earnings (within Gain on sale of real estate, net, in our consolidated statements of income) when the hedged investment is either sold or substantially liquidated. In accordance with fair value measurement guidance, counterparty credit risk is measured on a net portfolio position basis.\n\nIncome Taxes — We conduct business in various states and municipalities primarily within North America and Europe, and as a result, we or one or more of our subsidiaries file income tax returns in the United States federal jurisdiction and various state and foreign jurisdictions. We derive most of our REIT income from our real estate operations. Our domestic real estate operations are generally not subject to federal tax, and accordingly, no provision has been made for U.S. federal income taxes in the consolidated financial statements for these operations. These operations may be subject to certain state and local taxes, as applicable. A taxable REIT subsidiary (“TRS”) may perform additional services for our tenants and generally may engage in any real estate or non-real estate-related business. These operations are subject to federal, state, local, and foreign taxes, as applicable. Our financial statements are prepared on a consolidated basis including these TRSs and include a provision for current and deferred taxes on these operations.\n\nSignificant judgment is required in determining our tax provision and in evaluating our tax positions. We establish tax reserves based on a benefit recognition model, which could result in a greater amount of benefit (and a lower amount of reserve) being initially recognized in certain circumstances. Provided that the tax position is deemed more likely than not of being sustained, we recognize the largest amount of tax benefit that is greater than 50% likely of being ultimately realized upon settlement. We derecognize the tax position when it is no longer more likely than not of being sustained.\n\nOur earnings and profits, which determine the taxability of distributions to stockholders, differ from net income reported for financial reporting purposes due primarily to differences in depreciation, including hotel properties, and timing differences of rent recognition and certain expense deductions, for federal income tax purposes.\n\nW. P. Carey 2025 10-K – 65\n\nNotes to Consolidated Financial Statements\n\nWe recognize deferred income taxes in certain of our subsidiaries taxable in the United States or in foreign jurisdictions. Deferred income taxes are generally the result of temporary differences (items that are treated differently for tax purposes than for GAAP purposes as described in [Note 15](#i52e238857d8641668248158c9abdf12c_172)). In addition, deferred tax assets arise from unutilized tax net operating losses, generated in prior years. Deferred income taxes are computed under the asset and liability method. The asset and liability method requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between tax bases and financial bases of assets and liabilities. We provide a valuation allowance against our deferred income tax assets when we believe that it is more likely than not that all or some portion of the deferred income tax asset may not be realized. Whenever a change in circumstances causes a change in the estimated realizability of the related deferred income tax asset, the resulting increase or decrease in the valuation allowance is included in deferred income tax expense (benefit).\n\nEarnings Per Share — Basic earnings per share is calculated by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding during the year. Diluted earnings per share reflects potentially dilutive securities (RSAs, RSUs, PSUs, and shares available for issuance under our ATM Forwards, as defined in [Note 13](#i52e238857d8641668248158c9abdf12c_160)) using the treasury stock method, except when the effect would be anti-dilutive.\n\nReference Rate Reform — During the first quarter of 2023, we applied the guidance in ASC 848, Reference Rate Reform and elected the practical expedient to transition certain contracts that reference London Interbank Offered Rate (“LIBOR”) to the Secured Overnight Financing Rate (“SOFR”), including our Senior Unsecured Credit Facility ([Note 11](#i52e238857d8641668248158c9abdf12c_154)) and certain derivative instruments. The application of this guidance did not have a material impact on our consolidated financial statements.\n\n \n\nUse of Estimates — The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in our consolidated financial statements and the accompanying notes. Actual results could differ from those estimates.\n\nRecent Accounting Pronouncements\n\nIn November 2024, the Financial Accounting Standards Board (“FASB”) issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures, requiring all public business entities to provide additional disclosure of the nature of expenses included in the consolidated statements of income. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026 and for interim reporting periods beginning after December 15, 2027, on a prospective basis, with early adoption permitted. We are currently evaluating the impact of this standard on our consolidated financial statements.\n\nIn December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 requires public companies to annually (i) disclose specific categories in the rate reconciliation disclosure and (ii) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than five percent of the amount computed by multiplying pre-tax income or loss by the applicable statutory income tax rate). ASU 2023-09 also requires entities to disclose their income tax payments to international, federal, state, and local jurisdictions, among other changes. We adopted this standard for our annual period beginning January 1, 2025 on a prospective basis. The adoption of this standard did not have a material impact on our consolidated financial statements, but has resulted in incremental disclosures within the footnotes to our consolidated financial statements ([Note 15](#i52e238857d8641668248158c9abdf12c_172)).\n\nNote 3. NLOP Spin-Off\n\nSpin-Off\n\nOn November 1, 2023, we completed the Spin-Off of 59 office properties into NLOP ([Note 1](#i52e238857d8641668248158c9abdf12c_115)). The Spin-Off was accomplished via a pro rata dividend of one NLOP common share for every 15 shares of WPC common stock outstanding. Following the closing of the Spin-Off, NLOP operates as a separate publicly-traded REIT, for which we serve as advisor pursuant to the NLOP Advisory Agreements executed in connection with the Spin-Off, as described below in further detail.\n\nW. P. Carey 2025 10-K – 66\n\nNotes to Consolidated Financial Statements\n\nOn the date of the Spin-Off, NLOP’s portfolio of 59 office properties totaled approximately 9.3 million leasable square feet (including 0.6 million of operating square footage for a parking garage at a domestic property) (unaudited) primarily leased to 62 corporate tenants on a single-tenant net lease basis. The vast majority of the office properties owned by NLOP are located in the United States, with the balance in Europe. NLOP’s portfolio generated contractual minimum annualized base rent (“ABR”) totaling approximately $145 million as of September 30, 2023. We also derecognized non-recourse mortgages encumbering ten properties totaling $164.7 million.\n\nThe following table summarizes assets, liabilities, and equity derecognized in connection with the Spin-Off (in thousands):\n\nAssets\n\nInvestments in real estate:\n\nLand, buildings and improvements — net lease and other$1,299,400 \n\nIn-place lease and other intangible assets373,631 \n\nAbove-market rent intangible assets58,426 \n\nInvestments in real estate1,731,457 \n\nAccumulated depreciation and amortization(454,768)\n\nNet investments in real estate1,276,689 \n\nCash and cash equivalents and restricted cash9,141 \n\nOther assets, net (excluding restricted cash)70,472 \n\nGoodwill ([Note 7](#i52e238857d8641668248158c9abdf12c_142))\n61,737 \n\nLess: impairment charges ([Note 9](#i52e238857d8641668248158c9abdf12c_148))\n(47,282)\n\nTotal assets$1,370,757 \n\nLiabilities and Equity\n\nNon-recourse mortgages, net$164,743 \n\nAccounts payable, accrued expenses and other liabilities54,199 \n\nBelow-market rent intangible liabilities11,799 \n\nDeferred income taxes9,718 \n\nTotal liabilities240,459 \n\nDistributions in excess of accumulated earnings229,712 \n\nAccumulated other comprehensive loss(35,664)\n\nNoncontrolling interests4,406 \n\nTotal equity198,454 \n\nTotal liabilities and equity$438,913 \n\nW. P. Carey 2025 10-K – 67\n\nNotes to Consolidated Financial Statements\n\nThe following table summarizes the impact to the components of Total equity in connection with the Spin-Off (in thousands):\n\nImpact to Total Equity \n\nTotal assets derecognized (excluding cash and cash equivalents and restricted cash)$(1,361,616)\n\nTotal liabilities derecognized240,459 \n\nNet assets derecognized(1,121,157)\n\nLess: Proceeds in connection with the Spin-Off, reflecting cash and cash equivalents and restricted cash derecognized (described below under “Debt Facility”)343,885 \n\nImpact to Total equity$(777,272)\n\nImpact to Components of Total Equity\n\nDistributions in excess of accumulated earnings derecognized$(229,712)\n\nAccumulated other comprehensive income derecognized35,664 \n\nNoncontrolling interests derecognized(4,406)\n\nReduction to Additional paid-in capital(578,818)\n\nImpact to Total equity$(777,272)\n\nNLOP Agreements\n\nPursuant to the NLOP Advisory Agreements, which we entered into on November 1, 2023, we provide NLOP with strategic management services, including asset management, property disposition support, and various related services. NLOP will pay us an asset management fee, which was initially set at an annual amount of approximately $7.5 million and is being reduced proportionately following the disposition of each portfolio property. Such fees are included in Asset management revenue on our consolidated statements of income. In addition, NLOP will reimburse us a base administrative amount of approximately $4.0 million annually, for certain administrative services, including day-to-day management services, investor relations, accounting, tax, legal, and other administrative matters. Such amounts are included in Other advisory income and reimbursements on our consolidated statements of income.\n\nOn October 31, 2023, we entered into a Separation and Distribution Agreement, which set forth the various individual transactions to be consummated that comprised the Separation and the Distribution, including the assets transferred to and liabilities assumed by NLOP.\n\nOn October 31, 2023, we also entered into a Tax Matters Agreement, which governs the respective rights, responsibilities, and obligations of us and NLOP after the Distribution, with respect to tax liabilities and benefits, the preparation and filing of tax returns, the control of audits and other tax proceedings, tax covenants, tax indemnification, cooperation, and information sharing.\n\nDebt Facility\n\nIn September 2023, NLOP entered into a new $455 million debt facility, which was executed by NLOP and funded upon the closing of the Spin-Off on November 1, 2023 (the “NLOP Financing Arrangements”). Approximately $343.9 million of this amount (net of (i) transaction expenses and (ii) cash and cash equivalents and restricted cash derecognized) was retained by us in connection with the Spin-Off.\n\nSpin-Off Costs\n\nIn connection with the Spin-Off, we incurred approximately $61.6 million in total costs, comprised of (i) $10.0 million of advisory fees, which is included in Merger and other expenses on our consolidated statements of income ($4.9 million of such fees were recognized during the year ended December 31, 2022 and $5.1 million were recognized during the year ended December 31, 2023); and (ii) $51.6 million of additional Spin-Off related costs (including $14.4 million of financing costs incurred in connection with the NLOP Financing Arrangements), which were reimbursed to us by NLOP in connection with the Spin-Off.\n\nW. P. Carey 2025 10-K – 68\n\nNotes to Consolidated Financial Statements\n\nNote 4. Agreements and Transactions with Related Parties\n\nAdvisory Agreements with NLOP and CESH\n\nWe currently have advisory arrangements with NLOP and CESH, pursuant to which we earn fees and are entitled to receive reimbursement for certain administrative expenses. The NLOP Advisory Agreements are described in [Note 3](#i52e238857d8641668248158c9abdf12c_121).\n\nThe following tables present a summary of revenue earned and reimbursable costs received/accrued from NLOP and CESH for the periods indicated, included in the consolidated financial statements (in thousands):\n\n Years Ended December 31,\n\n 202520242023\n\nAsset management revenue (a) (b)\n$4,957 $6,597 $2,184 \n\nAdministrative reimbursements (a) (c)\n4,000 4,000 667 \n\nReimbursable costs from affiliates (a) (c)\n284 224 368 \n\n$9,241 $10,821 $3,219 \n\nYears Ended December 31,\n\n202520242023\n\nNLOP$8,578 $10,243 $1,912 \n\nCESH663 578 1,307 \n\n $9,241 $10,821 $3,219 \n\n__________\n\n(a)Amounts represent revenues from contracts under ASC 606.\n\n(b)Included within Asset management revenue in the consolidated statements of income.\n\n(c)Included within Other advisory income and reimbursements in the consolidated statements of income.\n\nThe following table presents a summary of amounts due from affiliates, which are included within Other assets, net in the consolidated financial statements (in thousands):\n\nDecember 31,\n\n20252024\n\nAccounts receivable$535 $462 \n\nAsset management fees receivable391 554 \n\nReimbursable costs70 73 \n\n$996 $1,089 \n\nPerformance Obligations and Significant Judgments\n\nThe fees earned pursuant to our advisory agreements are considered variable consideration. For the agreements that include multiple performance obligations, including asset management services, revenue is allocated to each performance obligation based on estimates of the price that we would charge for each promised service if it were sold on a standalone basis.\n\nJudgment is applied in assessing whether there should be a constraint on the amount of fees recognized, such as amounts in excess of certain threshold limits with respect to the contract price or any potential clawback provisions included in certain of our arrangements. We exclude fees subject to such constraints to the extent it is probable that a significant reversal of those amounts will occur.\n\nAsset Management Revenue\n\nUnder the advisory agreement with NLOP, we earn an asset management fee, paid in cash, which was initially set at an annual amount of $7.5 million and is being reduced proportionately following the disposition of each portfolio property. Under the advisory agreement with CESH, we earn asset management revenue at a rate of 1.0% based on its gross assets at fair value, paid in cash.\n\nW. P. Carey 2025 10-K – 69\n\nNotes to Consolidated Financial Statements\n\nThe performance obligation for asset management services is satisfied over time as services are rendered. The time-based output method is used to measure progress over time, as this is representative of the transfer of the services. We are compensated for our services on a monthly or quarterly basis. However, these services represent a series of distinct daily services under ASC 606, Revenue from Contracts with Customers. Accordingly, we satisfy the performance obligation and resolve the variability associated with our fees on a daily basis. We apply the practical expedient and, as a result, do not disclose variable consideration attributable to wholly or partially unsatisfied performance obligations as of the end of the reporting period.\n\nIn providing asset management services, we are reimbursed for certain costs. Direct reimbursement of these costs does not represent a separate performance obligation. Payment for asset management services is typically due on the first business day following the month of the delivery of the service.\n\nAdministrative Reimbursements\n\nUnder the advisory agreement with NLOP, we earn a base administrative amount of approximately $4.0 million annually, for certain administrative services, including day-to-day management services, investor relations, accounting, tax, legal, and other administrative matters, paid in cash.\n\nReimbursable Costs from Affiliates\n\nCESH reimburses us in cash for certain personnel and overhead costs that we incur on its behalf, based on actual expenses incurred.\n\nOther Transactions with Affiliates and Related Parties\n\nCaptive Insurance Company\n\nIn March 2025, we formed a wholly owned captive insurance company, which commenced operations in May 2025 and insures a portion of the North American real property portfolios of each of NLOP and us. Annual property insurance premiums from NLOP properties (commencing May 1, 2025) total $0.7 million, of which we recognized $0.4 million for the year ended December 31, 2025, which is included in Other gains and (losses) in the consolidated financial statements. Our captive insurance company does not have a material impact on our consolidated financial statements.\n\nOther\n\nAt December 31, 2025, we owned interests in eight jointly owned investments in real estate, with the remaining interests held by third parties. We consolidate five such investments and account for the remaining three investments under the equity method of accounting ([Note 8](#i52e238857d8641668248158c9abdf12c_145)). In addition, we owned limited partnership units of CESH at that date. We elected to account for our investment in CESH under the fair value option ([Note 8](#i52e238857d8641668248158c9abdf12c_145)).\n\nNote 5. Land, Buildings and Improvements, and Assets Held for Sale\n\nLand, Buildings and Improvements — Net Lease and Other\n\nLand and buildings leased to others, which are subject to operating leases, and real estate under construction, are summarized as follows (in thousands):\n\nDecember 31,\n\n20252024\n\nLand$2,839,757 $2,398,409 \n\nBuildings and improvements11,531,634 10,388,418 \n\nReal estate under construction79,915 56,042 \n\nLess: Accumulated depreciation(2,026,829)(1,701,892)\n\n$12,424,477 $11,140,977 \n\nW. P. Carey 2025 10-K – 70\n\nNotes to Consolidated Financial Statements\n\nDuring 2025, the U.S. dollar weakened against the euro, as the end-of-period rate for the U.S. dollar in relation to the euro increased by 13.1% to $1.1750 from $1.0389. As a result of this fluctuation in foreign currency exchange rates, the carrying value of our Land, buildings and improvements — net lease and other increased by $435.9 million from December 31, 2024 to December 31, 2025.\n\nDuring the year ended December 31, 2025, we reclassified a portfolio of 26 properties classified as Land, buildings and improvements — net lease and other to Net investments in finance leases and loans receivable since we entered into an agreement to sell the properties to the tenant. As a result, the carrying value of our Land, buildings and improvements — net lease and other decreased by $121.0 million from December 31, 2024 to December 31, 2025 ([Note 6](#i52e238857d8641668248158c9abdf12c_139)). These properties were sold in June 2025.\n\nDuring the year ended December 31, 2025, we reclassified a property classified as Land, buildings and improvements — net lease and other to Net investments in finance leases and loans receivable since we entered into an agreement to sell the property to the tenant. As a result, the carrying value of our Land, buildings and improvements — net lease and other decreased by $3.5 million from December 31, 2024 to December 31, 2025 ([Note 6](#i52e238857d8641668248158c9abdf12c_139)). This property was sold in July 2025.\n\nOn September 1, 2024, we entered into net lease agreements for certain self-storage properties previously classified as operating properties. On April 1, 2025, two of these net leases commenced; on July 1, 2025, one of these net leases commenced; and on August 1, 2025, one of these net leases commenced. As a result, on those dates, we reclassified four self-storage properties with an aggregate carrying value of $51.3 million from Land, buildings and improvements — operating properties to Land, buildings and improvements — net lease and other. Effective as of those times, we began recognizing lease revenues from these properties, whereas previously we recognized operating property revenues and expenses from these properties.\n\nIn connection with changes in lease classifications due to extensions of the underlying leases, we reclassified three properties with an aggregate carrying value of $15.0 million from Net investments in finance leases and loans receivable to Land, buildings and improvements — net lease and other during 2025 ([Note 6](#i52e238857d8641668248158c9abdf12c_139)).\n\nDepreciation expense, including the effect of foreign currency translation, on our buildings and improvements subject to operating leases was $331.1 million, $292.9 million, and $325.8 million for the years ended December 31, 2025, 2024, and 2023, respectively.\n\nW. P. Carey 2025 10-K – 71\n\nNotes to Consolidated Financial Statements\n\nAcquisitions of Real Estate During 2025\n\nDuring 2025, we entered into the following investments, which were deemed to be real estate asset acquisitions (dollars in thousands):\n\nProperty Location(s)Number of PropertiesDate of AcquisitionProperty Type\nTotal Capitalized Costs (a)\n\nVarious, United States (a)\n592/26/2025Industrial, Warehouse$136,022 \n\nVarious, United States (b)\n43/3/2025Retail8,474 \n\nMishawaka, Indiana13/26/2025Specialty (Healthcare)31,762 \n\nVarious, Germany (3 properties) and La Garriga, Spain (c)\n44/11/2025Industrial42,981 \n\nSanta Fe Springs, California14/23/2025Warehouse128,043 \n\nVarious, Italy (7 properties) and Málaga and Burgos, Spain (c)\n95/13/2025Industrial73,280 \n\nChattanooga, Tennessee16/16/2025Industrial20,247 \n\nNewark, New Jersey and Boston, Massachusetts26/17/2025Industrial101,856 \n\nSan Francisco, California17/11/2025Industrial49,604 \n\nVarious, United States (d)\n87/11/2025; 8/28/2025Retail15,796 \n\nLoughborough and Ilkeston, United Kingdom (c)\n27/16/2025Retail68,308 \n\nHouston, Texas17/31/2025Industrial18,357 \n\nVarious, France (3 properties) and Medina del Campo, Spain (c)\n47/31/2025Industrial56,388 \n\nVarious, Italy (c)\n358/6/2025Industrial, Warehouse81,900 \n\nMonterrey and San Juan del Rio, Mexico48/26/2025Industrial44,033 \n\nMesquite, Texas19/18/2025Industrial92,271 \n\nKissimmee, Florida19/23/2025Retail14,338 \n\nToronto and Markham, Canada; and Lee’s Summit, Missouri (c)\n39/24/2025Industrial67,170 \n\nCompton, California110/1/2025Warehouse5,937 \n\nVarious, United States (d)\n410/2/2025Specialty (Healthcare)137,275 \n\nSan Juan del Rio, Mexico110/2/2025Industrial9,999 \n\nVarious, United States (e)\n810/9/2025; 12/10/2025Retail15,986 \n\nNew Hartford, New York111/26/2025Retail (Car Wash)5,084 \n\nWasserburg am Inn, Germany (c)\n112/16/2025Industrial27,142 \n\nCesena and Gela, Italy (c)\n212/17/2025Industrial, Warehouse2,218 \n\nVarious, United States (f)\n1012/18/2025Retail321,826 \n\nNavarra and Zaragoza, Spain (c)\n412/22/2025Warehouse80,020 \n\n173$1,656,317 \n\n__________\n\n(a)This investment includes properties located across 13 U.S. states.\n\n(b)This investment includes properties located across three U.S. states.\n\n(c)Amount reflects the applicable exchange rate on the date of transaction.\n\n(d)This investment includes properties located across four U.S. states.\n\n(e)This investment includes properties located across five U.S. states.\n\n(f)This investment includes properties located across nine U.S. states.\n\nW. P. Carey 2025 10-K – 72\n\nNotes to Consolidated Financial Statements\n\nThe aggregate purchase price allocation for investments disclosed above is as follows (dollars in thousands):\n\nTotal Capitalized Costs\n\nLand$420,119 \n\nBuildings and improvements995,255 \n\nIntangible assets and liabilities:\n\nIn-place lease (weighted-average expected life of 16.0 years)\n252,165 \n\nAbove-market rent (expected life of 15.5 years)\n14,059 \n\nBelow-market rent (expected life of 5.7 years)\n(3,061)\n\nRight-of-use assets:\n\nLand lease right-of-use assets2,296 \n\nBelow-market ground lease intangibles1,495 \n\nPrepaid rent liabilities(23,715)\n\nOperating lease liabilities(2,296)\n\n$1,656,317 \n\nAcquisitions of Real Estate During 2024 — We entered into 25 investments, which were deemed to be real estate asset acquisitions, at a total cost of $1.2 billion, including land of $219.4 million, buildings of $772.3 million, in-place lease intangibles of $166.1 million, above-market rent intangibles of $7.1 million, below-market rent intangibles of $0.4 million, land lease ROU assets of $4.3 million, below-market ground lease intangibles of $3.5 million, debt discount and deferred financing costs on non-recourse mortgage loans assumed of $4.2 million, and operating lease liabilities of $4.3 million.\n\nAcquisitions of Real Estate During 2023 — We entered into 12 investments, which were deemed to be real estate asset acquisitions, at a total cost of $1.2 billion, including land of $212.6 million, buildings of $774.1 million, in-place lease intangibles of $185.9 million, ROU assets of $13.0 million, and prepaid rent liabilities of $6.9 million.\n\nReal Estate Under Construction — Net Lease and Operating Properties\n\nDuring 2025, we capitalized real estate under construction totaling $98.2 million. The number of construction projects in progress with balances included in real estate under construction was ten and four as of December 31, 2025 and 2024, respectively. Aggregate unfunded commitments totaled approximately $125.3 million and $72.1 million as of December 31, 2025 and 2024, respectively.\n\nDuring 2025, we completed the following construction projects (dollars in thousands):\n\nProperty Location(s)Primary Transaction TypeNumber of PropertiesDate of CompletionProperty TypeTotal Capitalized Costs\n\nGaleras, MexicoExpansion16/26/2025Industrial$4,843 \n\nBedford, MassachusettsRedevelopment17/22/2025Research and Development42,059 \n\nSurprise, Arizona (a)\nBuild-to-Suit110/27/2025Industrial22,042 \n\n3$68,944 \n\n__________\n\n(a)The tenant at this property commenced paying rent in January 2026.\n\nDuring 2024, we completed five construction projects, at a total cost of $87.0 million.\n\nDuring 2023, we completed four construction projects, at a total cost of $60.7 million.\n\nDuring 2025, we committed to fund nine construction projects, for an aggregate amount of $157.0 million. We currently expect to complete the projects in 2026 and 2027.\n\nCapitalized interest incurred during construction was $1.1 million, $1.0 million, and $0.6 million for the years ended December 31, 2025, 2024, and 2023 respectively, which reduces Interest expense in the consolidated statements of income.\n\nW. P. Carey 2025 10-K – 73\n\nNotes to Consolidated Financial Statements\n\nDispositions of Properties\n\nDuring 2025, we sold 34 properties, which were classified as Land, buildings and improvements — net lease and other. As a result, the carrying value of our Land, buildings and improvements — net lease and other decreased by $300.3 million from December 31, 2024 to December 31, 2025 ([Note 16](#i52e238857d8641668248158c9abdf12c_175)).\n\nOther Lease-Related Income\n\n2025 — For the year ended December 31, 2025, Other lease-related income on our consolidated statements of income included: (i) lease termination income totaling $16.9 million and (ii) other lease-related settlements totaling $5.3 million.\n\n2024 — For the year ended December 31, 2024, Other lease-related income on our consolidated statements of income included: (i) lease termination income totaling $7.0 million and (ii) other lease-related settlements totaling $11.8 million.\n\n2023 — For the year ended December 31, 2023, Other lease-related income on our consolidated statements of income included: (i) lease termination income totaling $11.9 million received from two tenants in connection with the sales of the properties they occupied and (ii) other lease-related settlements totaling $9.1 million.\n\nLeases\n\nOperating Lease Income\n\nLease income related to operating leases recognized and included in the consolidated statements of income is as follows (in thousands):\n\nYears Ended December 31,\n\n202520242023\n\nLease income — fixed$1,313,926 $1,186,730 $1,254,340 \n\nLease income — variable (a)\n165,278 145,058 173,036 \n\nTotal operating lease income$1,479,204 $1,331,788 $1,427,376 \n\n__________\n\n(a)Includes (i) rent increases based on changes in the CPI and other comparable indices and (ii) reimbursements for property taxes, insurance, and common area maintenance services.\n\nScheduled Future Lease Payments to be Received\n\nScheduled future lease payments to be received (exclusive of expenses paid by tenants, percentage of sales rents, and future CPI-based adjustments) under non-cancelable operating leases at December 31, 2025 are as follows (in thousands): \n\nYears Ending December 31, Total\n\n2026$1,426,069 \n\n20271,400,521 \n\n20281,364,800 \n\n20291,310,345 \n\n20301,261,348 \n\nThereafter11,763,531 \n\nTotal$18,526,614 \n\nSee [Note 6](#i52e238857d8641668248158c9abdf12c_139) for scheduled future lease payments to be received under non-cancelable direct financing leases and sales-type leases.\n\nW. P. Carey 2025 10-K – 74\n\nNotes to Consolidated Financial Statements\n\nLease Cost\n\nLease costs for operating leases are included in (i) General and administrative expenses (office leases), (ii) Property expenses, excluding reimbursable tenant costs (land leases), and (iii) Reimbursable tenant costs (land leases) in the consolidated statements of income. Certain information related to the total lease cost for operating leases is as follows (in thousands):\n\nYears Ended December 31,\n\n202520242023\n\nFixed lease cost\n$16,359 $15,550 $15,518 \n\nVariable lease cost\n2,204 1,992 1,731 \n\nTotal lease cost$18,563 $17,542 $17,249 \n\nDuring the years ended December 31, 2025, 2024, and 2023, we received sublease income totaling approximately $5.6 million, $5.0 million, and $4.9 million, respectively, which is included in Lease revenues in the consolidated statements of income.\n\nOther Information\n\nSupplemental balance sheet information related to ROU assets and lease liabilities is as follows (dollars in thousands):\n\nDecember 31,\n\nLocation on Consolidated Balance Sheets20252024\n\nOperating ROU assets — land leasesIn-place lease intangible assets and other$123,242 $115,156 \n\nFinance ROU assets — land and building leasesIn-place lease intangible assets and other26,860 25,253 \n\nOperating ROU assets — office leasesOther assets, net47,719 51,319 \n\nTotal operating ROU assets$197,821 $191,728 \n\nOperating lease liabilitiesAccounts payable, accrued expenses and other liabilities$144,252 $143,274 \n\nWeighted-average remaining lease term — operating leases23.8 years23.4 years\n\nWeighted-average discount rate — operating leases6.9 %6.8 %\n\nNumber of land lease arrangements — operating leases7172\n\nWeighted-average remaining lease term — finance leases (a)\n57.8 years56.4 years\n\nNumber of land and building lease arrangements — finance leases32\n\nNumber of office space arrangements44\n\nRemaining lease term range (excluding extension options not reasonably certain of being exercised)\n<1 – 94 years\n\n<1 – 95 years\n\n__________\n\n(a)There are no related lease liabilities for our finance ROU assets. Therefore, there is no applicable weighted-average discount rate for such assets.\n\nCash paid for operating lease liabilities included in Net cash provided by operating activities totaled $17.3 million, $16.2 million, and $16.1 million for the years ended December 31, 2025, 2024, and 2023, respectively.\n\nW. P. Carey 2025 10-K – 75\n\nNotes to Consolidated Financial Statements\n\nUndiscounted Cash Flows\n\nA reconciliation of the undiscounted cash flows for operating leases recorded on the consolidated balance sheet within Accounts payable, accrued expenses and other liabilities as of December 31, 2025 is as follows (in thousands):\n\nYears Ending December 31, Total\n\n2026$15,361 \n\n202715,947 \n\n202815,849 \n\n202914,927 \n\n203014,398 \n\nThereafter234,536 \n\nTotal lease payments311,018 \n\nLess: amount of lease payments representing interest(166,766)\n\nPresent value of future lease payments/lease obligations$144,252 \n\nLand, Buildings and Improvements — Operating Properties\n\nAt December 31, 2025, Land, buildings and improvements — operating properties consisted of our investments in 11 self-storage properties, four hotels, and one student housing property. At December 31, 2024, Land, buildings and improvements — operating properties consisted of our investments in 78 self-storage properties, four hotels, and two student housing properties. Below is a summary of our Land, buildings and improvements — operating properties (in thousands): \n\nDecember 31,\n\n20252024\n\nLand$25,665 $144,871 \n\nBuildings and improvements260,414 1,053,805 \n\nLess: Accumulated depreciation(59,626)(100,575)\n\n$226,453 $1,098,101 \n\nDuring the year ended December 31, 2025, the U.S. dollar weakened against the British pound sterling, resulting in an increase of $7.0 million in the carrying value of our Land, buildings and improvements — operating properties from December 31, 2024 to December 31, 2025.\n\nAs described above under Land, Buildings and Improvements — Net Lease and Other, on September 1, 2024, we entered into net lease agreements for certain self-storage properties previously classified as operating properties. On April 1, 2025, two of these net leases commenced; on July 1, 2025, one of these net leases commenced; and on August 1, 2025, one of these net leases commenced. As a result, on those dates, we reclassified four self-storage properties with an aggregate carrying value of $51.3 million from Land, buildings and improvements — operating properties to Land, buildings and improvements — net lease and other. Effective as of those times, we began recognizing lease revenues from these properties, whereas previously we recognized operating property revenues and expenses from these properties.\n\nDepreciation expense, including the effect of foreign currency translation, on our buildings and improvements attributable to operating properties was $22.5 million, $28.7 million, and $29.8 million for the years ended December 31, 2025, 2024, and 2023, respectively.\n\nDispositions of Properties\n\nDuring the year ended December 31, 2025, we sold 63 self-storage operating properties and one student housing operating property, which were classified as Land, buildings and improvements — operating properties. As a result, the carrying value of our Land, buildings and improvements — operating properties decreased by $802.1 million from December 31, 2024 to December 31, 2025 ([Note 16](#i52e238857d8641668248158c9abdf12c_175)).\n\nW. P. Carey 2025 10-K – 76\n\nNotes to Consolidated Financial Statements\n\nAcquisitions of Operating Real Estate During 2024 — We entered into one self-storage operating property investment, which was deemed to be a real estate asset acquisition, at a cost of $7.4 million, including land of $1.7 million, buildings of $5.3 million, and in-place lease intangibles of $0.4 million.\n\nAcquisitions of Operating Real Estate During 2023 — We entered into four self-storage operating property investments, which were deemed to be real estate asset acquisitions, at a total cost of $47.3 million, including land of $13.5 million, buildings of $31.9 million, and in-place lease intangibles of $1.8 million.\n\nFor the year ended December 31, 2025, Land, buildings and improvements — operating properties revenues totaling $112.5 million were comprised of $103.9 million in lease revenues and $8.6 million in other income (such as food and beverage revenue) from 78 consolidated self-storage properties, four consolidated hotels, and two consolidated student housing properties. For the year ended December 31, 2024, Land, buildings and improvements — operating properties revenues totaling $146.8 million were comprised of $136.5 million in lease revenues and $10.3 million in other income (such as food and beverage revenue) from 81 consolidated self-storage properties, five consolidated hotels, and two consolidated student housing properties. For the year ended December 31, 2023, Land, buildings and improvements — operating properties revenues totaling $180.3 million were comprised of $164.5 million in lease revenues and $15.8 million in other income from 80 consolidated self-storage properties, 13 consolidated hotels, and two consolidated student housing properties. We derive self-storage revenue primarily from rents received from customers who rent storage space under month-to-month leases for personal or business use. We derive hotel revenue primarily from room rentals, as well as food, beverage, and other services. We earn student housing operating revenue primarily from leases of one year or less with individual students.\n\nAssets Held for Sale, Net\n\nBelow is a summary of our properties held for sale (in thousands):\n\nDecember 31,\n\n20252024\n\nLand, buildings and improvements — net lease and other\n$3,741 $— \n\nAccumulated depreciation and amortization(414)— \n\nAssets held for sale, net$3,327 $— \n\nAt December 31, 2025, we had one property classified as Assets held for sale, net, with an aggregate carrying value of $3.3 million. This property was sold in January 2026 ([Note 18](#i52e238857d8641668248158c9abdf12c_181)).\n\nNote 6. Finance Receivables\n\nAssets representing rights to receive money on demand or at fixed or determinable dates are referred to as finance receivables. Our finance receivables portfolio consists of our Net investments in finance leases and loans receivable (net of allowance for credit losses). Operating leases are not included in finance receivables. See [Note 2](#i52e238857d8641668248158c9abdf12c_118) and [Note 5](#i52e238857d8641668248158c9abdf12c_133) for information on ROU operating lease assets recognized in our consolidated balance sheets.\n\nFinance Receivables\n\nNet investments in finance leases and loans receivable are summarized as follows (in thousands):\n\nMaturity DateDecember 31,\n\n20252024\n\nSale-leaseback transactions accounted for as loans receivable (a)\n2038 – 2057$857,931 $451,813 \n\nNet investments in direct financing leases (b)\n2026 – 2036267,530 277,698 \n\nSecured loans receivable (c)\n202635,783 31,857 \n\nNet investments in sales-type leases (c)\n205710,642 36,891 \n\n$1,171,886 $798,259 \n\n__________\n\n(a)These investments are accounted for as loans receivable in accordance with ASC 310, Receivables and ASC 842, Leases. Maturity dates reflect the current lease maturity dates. Amounts are net of allowance for credit losses of $35.3 million and $14.3 million as of December 31, 2025 and 2024, respectively.\n\nW. P. Carey 2025 10-K – 77\n\nNotes to Consolidated Financial Statements\n\n(b)Amounts are net of allowance for credit losses, as disclosed below under Net Investments in Direct Financing Leases.\n\n(c)These investments are assessed for credit loss allowances but no such allowances were recorded as of December 31, 2025 or 2024.\n\nDuring the year ended December 31, 2025, the U.S. dollar weakened against the euro, resulting in a $40.6 million increase in the carrying value of Net investments in finance leases and loans receivable from December 31, 2024 to December 31, 2025.\n\nIncome from finance leases and loans receivable is summarized as follows (in thousands):\n\nYears Ended December 31,\n\n202520242023\n\nSale-leaseback transactions accounted for as loans receivable$56,419 $22,754 $14,715 \n\nNet investments in direct financing leases30,447 34,375 49,950 \n\nSecured loans receivable2,580 2,853 4,399 \n\nNet investments in sales-type leases1,502 13,280 38,109 \n\n$90,948 $73,262 $107,173 \n\nLoans Receivable\n\nDuring the year ended December 31, 2025, we entered into the following sale-leasebacks, which were deemed to be loans receivable in accordance with ASC 310, Receivables and ASC 842, Leases (dollars in thousands):\n\nProperty Location(s)Number of PropertiesDate of AcquisitionProperty TypeTotal Investment\n\nBlytheville, Arkansas (a)\n13/27/2025Industrial$91,910 \n\nMcDonald, Tennessee16/27/2025Industrial166,060 \n\nVarious, United Kingdom (3 properties), Czech Republic (2 properties), and Slovakia (1 property) (b)\n67/3/2025Industrial103,380 \n\nDelphos, Ohio (c)\n110/24/2025Industrial8,693 \n\n9$370,043 \n\n__________\n\n(a)In connection with this acquisition, we capitalized (i) land lease right-of-use assets totaling $1.5 million, which are included within In-place lease intangible assets and other on our consolidated balance sheets, and (ii) operating lease liabilities totaling $1.5 million, which are included within Accounts payable, accrued expenses and other liabilities on our consolidated balance sheets.\n\n(b)Amount reflects the applicable exchange rate on the date of transaction.\n\n(c)In connection with this acquisition, we committed to fund (i) an expansion at this facility for $2.0 million and (ii) a build-to-suit project for a new industrial facility for $36.0 million, both of which are expected to be completed in the fourth quarter of 2026.\n\nDuring the year ended December 31, 2024, we entered into three sale-leasebacks, which were deemed to be loans receivable, at a total cost of $238.6 million.\n\nDuring the years ended December 31, 2025, 2024, and 2023, we recorded an allowance for credit losses of $21.0 million, $13.5 million, and $0.8 million, respectively, on our sale-leaseback transactions accounted for as loans receivables due to changes in economic conditions.\n\nW. P. Carey 2025 10-K – 78\n\nNotes to Consolidated Financial Statements\n\nOn May 22, 2025, we committed to fund two construction projects totaling approximately $120.3 million on a consolidated basis (of which our proportionate share is approximately $108.3 million), for concert venues located in Austin, Texas, and Portland, Oregon, which we expect to be completed in 2026 and 2027, respectively. We own a 90% controlling interest in both investments, which we consolidate. In connection with these projects, and in accordance with ASC 310, Receivables and ASC 842, Leases, during the year ended December 31, 2025 we capitalized land and buildings totaling $33.8 million, which is recorded in Net investments in finance leases and loans receivable in our consolidated financial statements. Our joint-venture partner contributed $12.6 million to the projects during the year ended December 31, 2025, including a non-cash contribution of land for $3.9 million during the second quarter of 2025, which is reflected in Noncontrolling interests in our consolidated financial statements.\n\nAt December 31, 2025, the following construction loans are accounted for as secured loan receivables for accounting purposes in accordance with the acquisition, development and construction arrangement sub-section of ASC 310, Receivables (in thousands):\n\nLocation/DescriptionFunded Year to Date\nLoan Maturity Date (a)\n\nTotal Funded as of December 31,\n\n20252024\n\nLas Vegas, Nevada (retail)$1,556 Dec. 2026$18,367 $16,811 \n\nLas Vegas, Nevada (mixed use)2,371 Nov. 202617,417 15,046 \n\n$3,927 $35,784 $31,857 \n\n__________\n\n(a)The borrowers for these construction loans retain certain loan maturity extension options.\n\nIn June 2024, in connection with a property disposition, we provided financing to the buyer of $15.0 million with an interest rate of 15.0%. In September 2024, this secured loan receivable was repaid to us for $15.0 million.\n\nIn March 2024, a secured loan receivable was repaid to us for $24.0 million. In connection with this repayment, we recorded a release of allowance for credit losses of $2.1 million since the loan principal was fully repaid. In addition, we collected $1.4 million of unpaid interest related to a prior year upon repayment of this secured loan receivable, which was included in Income from finance leases and loans receivable on the consolidated statements of income for the year ended December 31, 2025.\n\nIn August 2023, one of our secured loans receivable was repaid to us for $28.0 million. In connection with this repayment, we received an $0.6 million prepayment penalty from the borrower, which was included in Income from finance leases and loans receivable in the consolidated financial statements for the year ended December 31, 2023.\n\nNet Investments in Direct Financing Leases\n\nNet investments in direct financing leases is summarized as follows (in thousands):\n\nDecember 31,\n\n20252024\n\nLease payments receivable$146,467 $178,639 \n\nUnguaranteed residual value244,928 273,502 \n\n391,395 452,141 \n\nLess: unearned income(120,120)(150,383)\n\nLess: allowance for credit losses (a)\n(3,745)(24,060)\n\n$267,530 $277,698 \n\n__________\n\n(a)During the years ended December 31, 2025, 2024, and 2023, we recorded a net allowance for credit losses of $2.3 million, $16.2 million, and $28.2 million, respectively, on our net investments in direct financing leases due to changes in expected economic conditions, which was included within Other gains and (losses) in our consolidated statements of income. In addition, during the year ended December 31, 2025, we reduced the allowance for credit losses balance by $22.7 million, in connection with the reclassification of certain properties from Net investments in finance leases and loans receivable to Land, buildings and improvements — net lease and other, as described below.\n\nW. P. Carey 2025 10-K – 79\n\nNotes to Consolidated Financial Statements\n\n2025 — During the year ended December 31, 2025, we reclassified three properties with a carrying value of $15.0 million from Net investments in finance leases and loans receivable to Land, buildings and improvements — net lease and other in connection with changes in lease classifications due to extensions of the underlying leases ([Note 5](#i52e238857d8641668248158c9abdf12c_133)).\n\nNet Investments in Sales-Type Leases\n\nOn February 28, 2023, the tenant occupying our portfolio of 78 net-lease self-storage properties located in the United States provided notice of its intention to exercise its option to repurchase the properties. In accordance with ASC 842, Leases, we reclassified these net-lease assets to net investments in sales-type leases totaling $451.4 million on our consolidated balance sheets within Net investments in finance leases and loans receivable (based on the present value of remaining rents and estimated purchase price, using the CPI rates as of the exercise notice date), since the tenant provided notice of its intention to exercise its purchase option. We recognized an aggregate Gain on sale of real estate, net, of $176.2 million during the year ended December 31, 2023 related to this transaction. During the year ended December 31, 2024, we completed the sale of this portfolio ([Note 16](#i52e238857d8641668248158c9abdf12c_175)).\n\nOn October 16, 2023, the tenant occupying an industrial/office facility located in Nagold, Germany, provided notice of its intention to exercise its option to repurchase the property. In accordance with ASC 842, Leases, we reclassified this net-lease asset to net investments in sales-type leases totaling $20.6 million on our consolidated balance sheets (based on the estimated purchase price and the foreign currency exchange rate of the euro on the date of notice), since the tenant provided notice of its intention to exercise its purchase option. During the year ended December 31, 2025, we completed the sale of this property. As a result, the carrying value of Net investments in finance leases and loans receivable decreased by $18.7 million from December 31, 2024 to December 31, 2025 ([Note 16](#i52e238857d8641668248158c9abdf12c_175)). No gain or loss on sale of real estate was recognized related to this transaction.\n\nOn October 31, 2023, we entered into an agreement to sell our portfolio of 70 office properties located in Spain to the tenant occupying the properties. In accordance with ASC 842, Leases, we reclassified these net-lease assets to net investments in sales-type leases totaling $348.6 million on our consolidated balance sheets within Net investments in finance leases and loans receivable (based on the estimated purchase price and the foreign currency exchange rate of the euro on the agreement date), since this agreement resulted in a lease modification. We recognized an aggregate Gain on sale of real estate, net, of $59.1 million during the year ended December 31, 2023 related to this transaction. During the year ended December 31, 2024, we completed the sale of this portfolio ([Note 16](#i52e238857d8641668248158c9abdf12c_175)).\n\nOn July 10, 2024, we entered into an agreement to sell two properties located in the Netherlands to the tenant occupying the properties. In accordance with ASC 842, Leases, we reclassified these net-lease assets to net investments in sales-type leases totaling $17.3 million on our consolidated balance sheets (based on the estimated purchase price and the foreign currency exchange rate of the euro on the agreement date), since this agreement resulted in a lease modification. We recognized an aggregate Gain on sale of real estate, net, of $6.4 million during the year ended December 31, 2024 related to this transaction. During the year ended December 31, 2025, we completed the sale of these properties. As a result, the carrying value of Net investments in finance leases and loans receivable decreased by $16.6 million from December 31, 2024 to December 31, 2025 ([Note 16](#i52e238857d8641668248158c9abdf12c_175)).\n\nOn May 21, 2025, we entered into an agreement to sell our portfolio of 26 funeral homes located in Spain to the tenant occupying the properties. In accordance with ASC 842, Leases, we reclassified these net-lease assets to net investments in sales-type leases totaling $162.0 million on our consolidated balance sheets (based on the estimated purchase price and the foreign currency exchange rate of the euro on the agreement date), since this agreement resulted in a lease modification. In connection with this transaction, we reclassified the following amounts to Net investments in finance leases and loans receivable: (i) $129.7 million from Land, buildings and improvements — net lease and other, (ii) $20.3 million from In-place lease intangible assets and other, and (iii) $11.0 million from Accumulated depreciation and amortization. We recognized an aggregate Gain on sale of real estate, net, of $19.0 million during the year ended December 31, 2025 related to this transaction, reflecting balances of $0.5 million within Deferred income taxes and $4.5 million within Accounts payable, accrued expenses and other liabilities for this investment. This portfolio was sold in June 2025. As a result, the carrying value of Net investments in finance leases and loans receivable decreased by $162.0 million.\n\nW. P. Carey 2025 10-K – 80\n\nNotes to Consolidated Financial Statements\n\nOn June 18, 2025, we entered into an agreement to sell a property located in Windsor, Connecticut, to the tenant occupying the property, and due diligence for the sale was completed on July 16, 2025. In accordance with ASC 842, Leases, we reclassified this net-lease asset to net investments in sales-type leases for $6.5 million on our consolidated balance sheets, since this agreement resulted in a lease modification. In connection with this transaction, we reclassified the following amounts to Net investments in finance leases and loans receivable: (i) $4.4 million from Land, buildings and improvements — net lease and other, (ii) $0.2 million from Other assets, net, and (iii) $0.9 million from Accumulated depreciation and amortization. We recognized an aggregate Gain on sale of real estate, net, of $2.8 million during the year ended December 31, 2025 related to this transaction. This property was sold in July 2025. As a result, the carrying value of Net investments in finance leases and loans receivable decreased by $6.5 million.\n\nPrior to the reclassifications of certain properties to net investments in sales-type leases, earnings from such investments were recognized in Lease revenues in the consolidated financial statements.\n\nNet investments in sales-type leases is summarized as follows (in thousands):\n\nDecember 31,\n\n20252024\n\nLease payments receivable$38,306 $36,938 \n\nUnguaranteed residual value10,500 — \n\n48,806 36,938 \n\nLess: unearned income(38,164)(47)\n\n$10,642 $36,891 \n\nScheduled Future Lease Payments to be Received\n\nScheduled future lease payments to be received (exclusive of expenses paid by tenants, percentage of sales rents, and future CPI-based adjustments) under non-cancelable direct financing leases and sales-type leases at December 31, 2025 are as follows (in thousands):\n\nYears Ending December 31, Total\n\n2026$32,658 \n\n202731,443 \n\n202823,800 \n\n202921,284 \n\n203019,552 \n\nThereafter56,036 \n\nTotal$184,773 \n\nSee [Note 5](#i52e238857d8641668248158c9abdf12c_133) for scheduled future lease payments to be received under non-cancelable operating leases.\n\nCredit Quality of Finance Receivables\n\n \n\nWe generally invest in facilities that we believe are critical to a tenant’s business and therefore have a lower risk of tenant default. At both December 31, 2025 and 2024, no material balances of our finance receivables were past due. Other than the lease extensions noted above under Net Investments in Direct Financing Leases, there were no material modifications of finance receivables during the year ended December 31, 2025.\n\nWe evaluate the credit quality of our finance receivables utilizing an internal five-point credit rating scale, with one representing the highest credit quality and five representing the lowest. A credit quality of one through three indicates a range of investment grade to stable. A credit quality of four through five indicates a range of inclusion on the watch list to risk of default. The credit quality evaluation of our finance receivables is updated quarterly.\n\nW. P. Carey 2025 10-K – 81\n\nNotes to Consolidated Financial Statements\n\nA summary of our finance receivables by internal credit quality rating, excluding our allowance for credit losses, is as follows (dollars in thousands):\n\nNumber of Tenants / Obligors at December 31,Carrying Value at December 31,\n\nInternal Credit Quality Indicator2025202420252024\n\n1 – 31718$762,969 $575,361 \n\n497448,007 254,864 \n\n5—1— 6,411 \n\n$1,210,976 $836,636 \n\nNote 7. Goodwill and Other Intangibles\n\nWe have recorded lease and internal-use software development intangibles that are being amortized over periods ranging from one year to 38 years. In-place lease intangibles, at cost are included in In-place lease intangible assets and other in the consolidated financial statements. Above-market rent intangibles, at cost are included in Above-market rent intangible assets in the consolidated financial statements. Accumulated amortization of in-place lease and above-market rent intangibles is included in Accumulated depreciation and amortization in the consolidated financial statements. Internal-use software development intangibles are included in Other assets, net in the consolidated financial statements. Below-market rent intangibles are included in Below-market rent intangible liabilities, net in the consolidated financial statements.\n\nNet lease intangibles recorded in connection with property acquisitions during the year ended December 31, 2025 are described in [Note 5](#i52e238857d8641668248158c9abdf12c_133).\n\nIn connection with certain business combinations, we recorded goodwill as a result of consideration exceeding the fair values of the assets acquired and liabilities assumed ([Note 2](#i52e238857d8641668248158c9abdf12c_118)). The following table presents a reconciliation of our goodwill (in thousands):\n\nGoodwill\n\nBalance at January 1, 2023\n$1,037,412 \n\nAllocation of goodwill distributed to NLOP ([Note 3](#i52e238857d8641668248158c9abdf12c_121))\n(61,737)\n\nForeign currency translation adjustments2,614 \n\nBalance at December 31, 2023\n978,289 \n\nForeign currency translation adjustments(10,446)\n\nBalance at December 31, 2024\n967,843 \n\nForeign currency translation adjustments19,228 \n\nBalance at December 31, 2025\n$987,071 \n\nCurrent accounting guidance requires that we test for the recoverability of goodwill at least annually, or more frequently if events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable. We performed our annual test for impairment in October 2025 and found no impairment indicated.\n\nW. P. Carey 2025 10-K – 82\n\nNotes to Consolidated Financial Statements\n\nIntangible assets, intangible liabilities, and goodwill are summarized as follows (in thousands):\n\nDecember 31,\n\n20252024\n\nGross Carrying AmountAccumulated AmortizationNet Carrying AmountGross Carrying AmountAccumulated AmortizationNet Carrying Amount\n\nFinite-Lived Intangible Assets\n\nInternal-use software development costs\n$3,996 $(1,578)$2,418 $2,778 $(999)$1,779 \n\n3,996 (1,578)2,418 2,778 (999)1,779 \n\nLease Intangibles:\n\nIn-place lease2,316,097 (993,737)1,322,360 2,157,163 (938,574)1,218,589 \n\nAbove-market rent668,707 (498,138)170,569 665,495 (481,355)184,140 \n\n2,984,804 (1,491,875)1,492,929 2,822,658 (1,419,929)1,402,729 \n\nGoodwill\n\nGoodwill987,071 — 987,071 967,843 — 967,843 \n\nTotal intangible assets$3,975,871 $(1,493,453)$2,482,418 $3,793,279 $(1,420,928)$2,372,351 \n\nFinite-Lived Intangible Liabilities\n\nBelow-market rent$(202,319)$98,264 $(104,055)$(197,971)$78,140 $(119,831)\n\nTotal intangible liabilities$(202,319)$98,264 $(104,055)$(197,971)$78,140 $(119,831)\n\nDuring 2025, the U.S. dollar weakened against the euro, resulting in an increase of $45.0 million in the carrying value of our net intangible assets from December 31, 2024 to December 31, 2025. See [Note 6](#i52e238857d8641668248158c9abdf12c_139) for a description of intangible assets and liabilities reclassified to net investments in sales-type leases during the year ended December 31, 2025.\n\nNet amortization of intangibles, including the effect of foreign currency translation, was $174.7 million, $186.7 million, and $247.5 million for the years ended December 31, 2025, 2024, and 2023, respectively. Amortization of below-market rent and above-market rent intangibles is recorded as an adjustment to Lease revenues and amortization of internal-use software development and in-place lease intangibles is included in Depreciation and amortization.\n\nBased on the intangible assets and liabilities recorded at December 31, 2025, scheduled annual net amortization of intangibles for each of the next five calendar years and thereafter is as follows (in thousands):\n\nYears Ending December 31,Net Decrease (Increase) in Lease RevenuesIncrease to AmortizationTotal\n\n2026$15,862 $137,206 $153,068 \n\n202714,564 125,231 139,795 \n\n202812,950 114,466 127,416 \n\n202912,466 104,714 117,180 \n\n203011,818 98,106 109,924 \n\nThereafter(1,146)745,055 743,909 \n\nTotal$66,514 $1,324,778 $1,391,292 \n\nW. P. Carey 2025 10-K – 83\n\nNotes to Consolidated Financial Statements\n\nNote 8. Equity Method Investments\n\nInterests in Unconsolidated Real Estate Investments and CESH\n\nWe own interests in certain unconsolidated real estate investments with third parties and in CESH. We account for our interests in these investments under the equity method of accounting (i.e., at cost, increased or decreased by our share of earnings or losses, less distributions, plus contributions and other adjustments required by equity method accounting, such as basis differences) or at fair value by electing the equity method fair value option available under GAAP.\n\nWe classify distributions received from equity method investments using the cumulative earnings approach. In general, distributions received are considered returns on the investment and classified as cash inflows from operating activities. If, however, the investor’s cumulative distributions received, less distributions received in prior periods determined to be returns of investment, exceeds cumulative equity in earnings recognized, the excess is considered a return of investment and is classified as cash inflows from investing activities.\n\nWe own equity interests in properties that are generally leased to companies through noncontrolling interests in partnerships and limited liability companies that we do not control but over which we exercise significant influence. The underlying investments are jointly owned with third parties. We account for these investments under the equity method of accounting. We account for our interest in CESH under the equity method because, as its advisor, we do not exert control over, but we do have the ability to exercise significant influence over, CESH.\n\nThe following table sets forth our ownership interests in our equity method investments and their respective carrying values (dollars in thousands):\n\nCarrying Value at December 31,\n\nLessee/Fund/DescriptionOwnership Interest20252024\n\nLas Vegas Retail Complex (a) (b)\n47.50%$250,567 $248,972 \n\nKesko Senukai (c)\n70.00%34,732 26,773 \n\nHarmon Retail Corner (b)\n15.00%23,641 24,169 \n\nCESH (d)\n2.43%1,238 1,201 \n\n$310,178 $301,115 \n\n__________\n\n(a)See “Las Vegas Retail Complex” below for discussion of this equity method investment.\n\n(b)This investment is reported using the hypothetical liquidation at book value model, which may be different than pro rata ownership percentages, primarily due to the capital structure of the partnership agreement.\n\n(c)The carrying value of this investment is affected by fluctuations in the exchange rate of the euro.\n\n(d)We have elected to account for our investment in CESH at fair value by selecting the equity method fair value option available under GAAP.\n\nWe received aggregate distributions of $21.3 million, $22.1 million, and $29.1 million from our unconsolidated real estate investments for the years ended December 31, 2025, 2024, and 2023, respectively. At December 31, 2025 and 2024, the aggregate unamortized basis differences on our unconsolidated real estate investments were $15.1 million and $16.5 million, respectively. We received a distribution from CESH of $1.2 million during the year ended December 31, 2023. We did not receive a distribution from CESH during the years ended December 31, 2025 and 2024.\n\nLas Vegas Retail Complex\n\nOn June 10, 2021, we entered into an agreement to fund a construction loan of approximately $261.9 million (as of December 31, 2025) for a retail complex in Las Vegas, Nevada. The loan maturity date is June 30, 2026 and the borrower retains additional one-year extension options. Through December 31, 2025, we funded $250.9 million, including $3.2 million during the year ended December 31, 2025. During the year ended December 31, 2025, $5.0 million of this construction loan was repaid to us (which is included in the aggregate distributions from our unconsolidated real estate investments described above). The outstanding principal on this loan was $245.9 million as of December 31, 2025.\n\nW. P. Carey 2025 10-K – 84\n\nNotes to Consolidated Financial Statements\n\nOn February 27, 2025, we exercised our option to purchase a 47.50% ownership interest in the partnership that owns the Las Vegas Retail Complex for $5.0 million. Effective as of that date, we began recognizing our proportionate share of revenues and expenses from this jointly owned investment.\n\nEquity income from this investment (including interest income from the construction loan and our proportionate share of earnings from the 47.50% equity interest) was $13.3 million, $13.2 million, and $12.8 million for the years ended December 31, 2025, 2024, and 2023, respectively, which was recognized within Earnings from equity method investments in our consolidated statements of income.\n\nJohnson Self Storage\n\nOn September 1, 2024, we acquired the remaining 10% controlling interest in the Johnson Self Storage jointly owned investment for $10.5 million, bringing our ownership interest to 100%. This investment comprised nine self-storage operating properties. Following this acquisition, we consolidate the investment. Due to this change in control, we recorded a gain on change in control of interests of approximately $31.8 million during the third quarter of 2024, which was the difference between our carrying value and the fair value of our previously held equity interest on September 1, 2024 of approximately $62.9 million and approximately $94.7 million, respectively.\n\nIn addition, on September 1, 2024, we entered into net lease agreements for these nine self-storage properties previously classified as operating properties. As a result, in September 2024, we reclassified these nine self-storage properties from Equity method investments and recorded the following amounts: (i) $84.4 million to Land, buildings and improvements — net lease and other, and (ii) $20.6 million to In-place lease intangible assets and other. Effective as of that date, we began recognizing Lease revenues from these properties.\n\nNote 9. Fair Value Measurements\n\n \n\nThe fair value of an asset is defined as the exit price, which is the amount that would either be received when an asset is sold or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance establishes a three-tier fair value hierarchy based on the inputs used in measuring fair value. These tiers are: Level 1, for which quoted market prices for identical instruments are available in active markets, such as money market funds, equity securities, and U.S. Treasury securities; Level 2, for which there are inputs other than quoted prices included within Level 1 that are observable for the instrument, such as certain derivative instruments including interest rate caps, interest rate swaps, and foreign currency collars; and Level 3, for securities that do not fall into Level 1 or Level 2 and for which little or no market data exists, therefore requiring us to develop our own assumptions.\n\nItems Measured at Fair Value on a Recurring Basis\n\nThe methods and assumptions described below were used to estimate the fair value of each class of financial instrument. For significant Level 3 items, we have also provided the unobservable inputs.\n\nDerivative Assets and Liabilities — Our derivative assets and liabilities, which are included in Other assets, net and Accounts payable, accrued expenses and other liabilities, respectively, in the consolidated financial statements, are comprised of foreign currency collars, interest rate swaps, and interest rate caps ([Note 10](#i52e238857d8641668248158c9abdf12c_151)).\n\nThe valuation of our derivative instruments is determined using a discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, as well as observable market-based inputs, including interest rate curves, spot and forward rates, and implied volatilities. We incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of our derivative instruments for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. These derivative instruments were classified as Level 2 as these instruments are custom, over-the-counter contracts with various bank counterparties that are not traded in an active market.\n\nW. P. Carey 2025 10-K – 85\n\nNotes to Consolidated Financial Statements\n\nEquity Method Investment in CESH — We have elected to account for our investment in CESH, which is included in Equity method investments in the consolidated financial statements, at fair value by selecting the equity method fair value option available under GAAP ([Note 8](#i52e238857d8641668248158c9abdf12c_145)). We classified this investment as Level 3 because we primarily used valuation models that incorporate unobservable inputs to determine its fair value.\n\nInvestment in Shares of Lineage — Refer to [Note 2](#i52e238857d8641668248158c9abdf12c_118) for information about the accounting treatment of our investment in 5,546,547 shares of Lineage, which is classified as Level 2 as of December 31, 2025. During the years ended December 31, 2025 and 2024, we recognized non-cash unrealized losses on our investment in shares of Lineage totaling $103.4 million and $134.0 million, respectively, due to a lower closing share price, which was recorded within Other gains and (losses) in the consolidated financial statements. We did not recognize such gains (losses) during the year ended December 31, 2023. In addition, during the years ended December 31, 2025 and 2024, we recognized dividends of $11.3 million and $7.9 million, respectively, from our investment in shares of Lineage, which was recorded within Non-operating income in the consolidated financial statements. We did not recognize such dividends during the year ended December 31, 2023. The fair value of this investment was $167.5 million and $270.9 million at December 31, 2025 and 2024, respectively, which is reflected in Other assets, net in the consolidated financial statements.\n\nOther than the transfer of our investment in shares of Lineage from Level 3 to Level 2 noted above, we did not have any transfers into or out of Level 1, Level 2, and Level 3 category of measurements during either the years ended December 31, 2025 or 2024. Gains and losses (realized and unrealized) recognized on items measured at fair value on a recurring basis included in earnings are reported within Other gains and (losses) on our consolidated financial statements.\n\nOur other material financial instruments had the following carrying values and fair values as of the dates shown (dollars in thousands):\n\nDecember 31, 2025December 31, 2024\n\nLevelCarrying ValueFair ValueCarrying ValueFair Value\n\nSenior Unsecured Notes, net (a) (b) (c)\n\n2 and 3\n$6,950,261 $6,788,238 $6,505,907 $6,232,889 \n\nNon-recourse mortgages, net (a) (b) (d)\n3140,646 141,311 401,821 400,508 \n\n__________\n\n(a)The carrying value of Senior Unsecured Notes, net ([Note 11](#i52e238857d8641668248158c9abdf12c_154)) includes unamortized deferred financing costs of $29.3 million and $30.2 million at December 31, 2025 and 2024, respectively. The carrying value of Non-recourse mortgages, net includes unamortized deferred financing costs of $0.4 million and $0.5 million at December 31, 2025 and 2024, respectively.\n\n(b)The carrying value of Senior Unsecured Notes, net includes unamortized discount of $29.8 million and $29.9 million at December 31, 2025 and 2024, respectively. The carrying value of Non-recourse mortgages, net includes unamortized discount of $2.4 million and $4.4 million at December 31, 2025 and 2024, respectively.\n\n(c)For those Senior Unsecured Notes for which there are no observable market prices (specifically, our private placement Senior Unsecured Notes ([Note 11](#i52e238857d8641668248158c9abdf12c_154))), we used a discounted cash flow model that estimates the present value of future loan payments by discounting such payments at current estimated market interest rates. We consider these notes to be within the Level 3 category. For all other Senior Unsecured Notes, we determined the estimated fair value using observed market prices in an open market, which may experience limited trading volume. We consider these notes to be within the Level 2 category.\n\n(d)We determined the estimated fair value of our non-recourse mortgage loans using a discounted cash flow model that estimates the present value of the future loan payments by discounting such payments at current estimated market interest rates. The estimated market interest rates consider interest rate risk and the value of the underlying collateral, which includes quality of the collateral, the credit quality of the tenant/obligor, and the time until maturity.\n\nWe estimated that our other financial assets and liabilities, including amounts outstanding under our Senior Unsecured Credit Facility and Unsecured Term Loan due 2029 ([Note 11](#i52e238857d8641668248158c9abdf12c_154)), but excluding finance receivables ([Note 6](#i52e238857d8641668248158c9abdf12c_139)), had fair values that approximated their carrying values at both December 31, 2025 and 2024.\n\nItems Measured at Fair Value on a Non-Recurring Basis (Including Impairment Charges)\n\nWe periodically assess whether there are any indicators that the value of our real estate investments may be impaired or that their carrying value may not be recoverable, including investments impacted by the Spin-Off and Office Sale Program ([Note 1](#i52e238857d8641668248158c9abdf12c_115)). Our impairment policies are described in [Note 2](#i52e238857d8641668248158c9abdf12c_118).\n\n \n\nW. P. Carey 2025 10-K – 86\n\nNotes to Consolidated Financial Statements\n\nThe following table presents information about assets for which we recorded an impairment charge and that were measured at fair value on a non-recurring basis (in thousands):\n\nYears Ended December 31,\n\n 202520242023\n\n Fair Value\nMeasurementsImpairment\nChargesFair Value\nMeasurementsImpairment\nChargesFair Value\nMeasurementsImpairment\nCharges\n\nImpairment Charges\n\nReal estate$108,930 $70,367 $110,485 $43,595 $1,182,551 $86,411 \n\n$70,367 $43,595 $86,411 \n\nImpairment charges, and their related triggering events and fair value measurements, recognized during 2025, 2024, and 2023 were as follows:\n\nReal Estate\n\nThe impairment charges described below are reflected within Impairment charges — real estate in our consolidated statements of income.\n\n2025 — During the year ended December 31, 2025, we recognized impairment charges totaling $70.4 million on 15 properties, respectively, in order to reduce their carrying values to their estimated fair values, which approximated their estimated selling prices. Seven of these properties were self-storage operating properties, all of which were sold during 2025. Three more of these properties were sold in 2025.\n\n2024 — During the year ended December 31, 2024, we recognized impairment charges totaling $23.0 million on four properties in order to reduce their carrying values to their estimated fair values, which approximated their estimated selling prices. Two of these properties were sold in 2024 and two were sold in 2025.\n\nIn addition, during the year ended December 31, 2024, we recognized impairment charges totaling $20.6 million on two properties leased to the same tenant due to changes in expected cash flows related to a tenant bankruptcy, in order to reduce their carrying values to their estimated fair values. The fair value measurements for these properties were determined by using the following unobservable inputs:\n\n•Comparable vacant sale prices ranging from $35 per square foot to $36 per square foot; and\n\n•Six months of estimated net cash flows ranging from $0.5 million to $1.0 million.\n\nThese properties were sold in 2025.\n\n2023 — During the year ended December 31, 2023, we recorded an impairment charge of $47.3 million related to the 59 properties that were contributed to NLOP in the Spin-Off ([Note 3](#i52e238857d8641668248158c9abdf12c_121)). The fair value measurements for certain of these properties were determined by estimating discounted cash flows using the following unobservable inputs:\n\n•Market rents ranging from $6 per square foot to $65 per square foot;\n\n•Cash flow discount rates ranging from 6.5% to 12.0%; and\n\n•Terminal capitalization rates ranging from 5.5% to 12.0%.\n\nAdditionally, the fair value measurements for certain of these properties approximated their estimated selling prices.\n\nThe fair value measurements for the non-recourse mortgages encumbering certain of the properties that were contributed to NLOP were determined using a discounted cash flow model that estimates the present value of the future loan payments by discounting such payments at current estimated market interest rates. The estimated market interest rates consider interest rate risk and the value of the underlying collateral, which includes quality of the collateral, the credit quality of the tenant/obligor, and the time until maturity.\n\nIn addition, during the year ended December 31, 2023, we recognized impairment charges totaling $39.1 million on three office properties in order to reduce their carrying values to their estimated fair values, which approximated their estimated selling prices. We sold all of these properties during 2023 and 2024.\n\nW. P. Carey 2025 10-K – 87\n\nNotes to Consolidated Financial Statements\n\nNote 10. Risk Management and Use of Derivative Financial Instruments\n\nRisk Management\n\nIn the normal course of our ongoing business operations, we encounter economic risk. There are four main components of economic risk that impact us: interest rate risk, credit risk, market risk, and foreign currency risk. We are primarily subject to interest rate risk on our interest-bearing liabilities, including our Senior Unsecured Credit Facility ([Note 11](#i52e238857d8641668248158c9abdf12c_154)) and unhedged variable-rate non-recourse mortgage loans. Credit risk is the risk of default on our operations and our tenants’ inability or unwillingness to make contractually required payments. Market risk includes changes in the value of our properties and related loans, Senior Unsecured Notes, and other securities, due to changes in interest rates or other market factors. We own investments in North America, Europe, and Japan and are subject to risks associated with fluctuating foreign currency exchange rates.\n\nDerivative Financial Instruments\n\nWhen we use derivative instruments, it is generally to reduce our exposure to fluctuations in interest rates and foreign currency exchange rate movements. We have not entered into, and do not plan to enter into, financial instruments for trading or speculative purposes. In addition to entering into derivative instruments on our own behalf, we may also be a party to derivative instruments that are embedded in other contracts, and we may be granted common stock warrants by lessees when structuring lease transactions, which are considered to be derivative instruments. The primary risks related to our use of derivative instruments include a counterparty to a hedging arrangement defaulting on its obligation and a downgrade in the credit quality of a counterparty to such an extent that our ability to sell or assign our side of the hedging transaction is impaired. While we seek to mitigate these risks by entering into hedging arrangements with large financial institutions that we deem to be creditworthy, it is possible that our hedging transactions, which are intended to limit losses, could adversely affect our earnings. Furthermore, if we terminate a hedging arrangement, we may be obligated to pay certain costs, such as transaction or breakage fees. We have established policies and procedures for risk assessment and the approval, reporting, and monitoring of derivative financial instrument activities.\n\nWe measure derivative instruments at fair value and record them as assets or liabilities, depending on our rights or obligations under the applicable derivative contract. Derivatives that are not designated as hedges must be adjusted to fair value through earnings. For derivatives designated and that qualify as cash flow hedges, the change in fair value of the derivative is recognized in Other comprehensive income (loss) until the hedged item is recognized in earnings. Gains and losses on the cash flow hedges representing hedge components excluded from the assessment of effectiveness are recognized in earnings over the life of the hedge on a systematic and rational basis, as documented at hedge inception in accordance with our accounting policy election. Such gains and losses are recorded within Other gains and (losses) or Interest expense in our consolidated statements of income. The earnings recognition of excluded components is presented in the same line item as the hedged transactions. For derivatives designated and that qualify as a net investment hedge, the change in the fair value and/or the net settlement of the derivative is reported in Other comprehensive income (loss) as part of the cumulative foreign currency translation adjustment. Amounts are reclassified out of Other comprehensive income (loss) into earnings (within Gain on sale of real estate, net, in our consolidated statements of income) when the hedged net investment is either sold or substantially liquidated.\n\nAll derivative transactions with an individual counterparty are governed by a master International Swap and Derivatives Association agreement, which can be considered as a master netting arrangement; however, we report all our derivative instruments on a gross basis on our consolidated financial statements. At both December 31, 2025 and 2024, no cash collateral had been posted nor received for any of our derivative positions.\n\nW. P. Carey 2025 10-K – 88\n\nNotes to Consolidated Financial Statements\n\nThe following table sets forth certain information regarding our derivative instruments (in thousands):\n\nDerivatives Designated as Hedging Instruments\nBalance Sheet LocationAsset Derivatives Fair Value atLiability Derivatives Fair Value at\n\nDecember 31, 2025December 31, 2024December 31, 2025December 31, 2024\n\nForeign currency collars\n\nOther assets, net\n$1,468 $21,556 $— $— \n\nInterest rate swaps\nOther assets, net\n244 250 — — \n\nForeign currency collarsAccounts payable, accrued expenses and other liabilities— — (13,021)(50)\n\nInterest rate swaps\n\nAccounts payable, accrued expenses and other liabilities\n— — (4,024)(848)\n\n1,712 21,806 (17,045)(898)\n\nDerivatives Not Designated as Hedging Instruments\n\nForeign currency collarsOther assets, net133 1,696 — — \n\nForeign currency collars\n\nAccounts payable, accrued expenses and other liabilities\n— — (1,390)— \n\n133 1,696 (1,390)— \n\nTotal derivatives$1,845 $23,502 $(18,435)$(898)\n\nThe following tables present the impact of our derivative instruments in the consolidated financial statements (in thousands):\n\nAmount of Gain (Loss) Recognized on Derivatives in\n\nOther Comprehensive Income (Loss) (a)\n\nYears Ended December 31,\n\nDerivatives in Cash Flow Hedging Relationships 202520242023\n\nForeign currency collars$(33,060)$11,432 $(21,112)\n\nInterest rate swaps(2,996)154 (3,270)\n\nInterest rate caps— — (9)\n\nTotal$(36,056)$11,586 $(24,391)\n\nAmount of Gain (Loss) on Derivatives Reclassified from\nOther Comprehensive Income (Loss)\n\nDerivatives in Cash Flow Hedging Relationships\n\nLocation of Gain (Loss) Recognized in Income\nYears Ended December 31,\n\n202520242023\n\nForeign currency collarsNon-operating income$4,352 $8,695 $14,874 \n\nInterest rate swaps and capsInterest expense453 1,582 1,956 \n\nTotal$4,805 $10,277 $16,830 \n\n__________\n\n(a)Excludes net gains of $0.3 million, net losses of $1.0 million, and net losses of $2.0 million recognized on unconsolidated jointly owned investments for the years ended December 31, 2025, 2024, and 2023, respectively.\n\nAmounts reported in Other comprehensive income (loss) related to interest rate derivative contracts will be reclassified to Interest expense as interest is incurred on our variable-rate debt. Amounts reported in Other comprehensive income (loss) related to foreign currency derivative contracts will be reclassified to Non-operating income when the hedged foreign currency contracts are settled. As of December 31, 2025, we estimate that an additional $2.2 million and $3.5 million of losses will be reclassified as Interest expense and Non-operating income, respectively, during the next 12 months.\n\nW. P. Carey 2025 10-K – 89\n\nNotes to Consolidated Financial Statements\n\nAmount of Gain (Loss) on Derivatives Recognized in Income\n\nDerivatives in Cash Flow Hedging Relationships\nLocation of Gain (Loss) Recognized in Income\nYears Ended December 31,\n\n202520242023\n\nForeign currency collarsNon-operating income$(5,039)$3,826 $(389)\n\nInterest rate swaps\nInterest expense\n(534)(1,691)(2,076)\n\nDerivatives Not in Cash Flow Hedging Relationships\n\nForeign currency collars\nOther gains and (losses)\n(2,953)1,913 32 \n\nStock warrants\nOther gains and (losses)\n— — (3,950)\n\nTotal$(8,526)$4,048 $(6,383)\n\nSee below for information on our purposes for entering into derivative instruments.\n\nInterest Rate Swaps and Caps\n\nWe are exposed to the impact of interest rate changes primarily through our borrowing activities. To limit this exposure, we generally seek long-term debt financing on a fixed-rate basis. However, from time to time, we have obtained, and may in the future obtain, variable-rate (i) non-recourse mortgage loans and (ii) unsecured term loans ([Note 11](#i52e238857d8641668248158c9abdf12c_154)), and, as a result, we have entered into, and may continue to enter into, interest rate swap agreements or interest rate cap agreements with counterparties. Interest rate swaps, which effectively convert the variable-rate debt service obligations of a loan to a fixed rate, are agreements in which one party exchanges a stream of interest payments for a counterparty’s stream of cash flow over a specific period. The notional, or face, amount on which the swaps are based is not exchanged. Interest rate caps limit the effective borrowing rate of variable-rate debt obligations while allowing participants to share in downward shifts in interest rates. Our objective in using these derivatives is to limit our exposure to interest rate movements.\n\nThe interest rate swaps that our consolidated subsidiaries had outstanding at December 31, 2025 are summarized as follows (currency in thousands):\n\nInterest Rate Derivatives Number of InstrumentsNotional\nAmount\nFair Value at\nDecember 31, 2025 (a)\n\nDesignated as Cash Flow Hedging Instruments\n\nInterest rate swaps2270,000 GBP$(3,404)\n\nInterest rate swaps4529,640 EUR(381)\n\nInterest rate swap111,290 USD5 \n\n$(3,780)\n\n__________ \n\n(a)Fair value amounts are based on the exchange rate of the euro at December 31, 2025, as applicable.\n\nForeign Currency Collars\n\nWe are exposed to foreign currency exchange rate movements, primarily in the euro and, to a lesser extent, the British pound sterling and certain other currencies. In order to hedge certain of our foreign currency cash flow exposures, we enter into foreign currency collars. A foreign currency collar consists of a written call option and a purchased put option to sell the foreign currency at a range of predetermined exchange rates. A foreign currency collar guarantees that the exchange rate of the currency will not fluctuate beyond the range of the options’ strike prices. Our foreign currency collars have maturities of 59 months or less.\n\nW. P. Carey 2025 10-K – 90\n\nNotes to Consolidated Financial Statements\n\nThe following table presents the foreign currency collars that we had outstanding at December 31, 2025 (currency in thousands):\n\nForeign Currency Derivatives Number of InstrumentsNotional\nAmount\nFair Value at\n\nDecember 31, 2025\n\nDesignated as Cash Flow Hedging Instruments\n\nForeign currency collars38252,000 EUR$(11,581)\n\nForeign currency collars1720,000 GBP27 \n\nNot Designated as Cash Flow Hedging Instruments\n\nForeign currency collars868,000 EUR(1,256)\n\n$(12,810)\n\nCredit Risk-Related Contingent Features\n\nWe measure our credit exposure on a counterparty basis as the net positive aggregate estimated fair value of our derivatives, net of any collateral received. No collateral was received as of December 31, 2025. At December 31, 2025, both our total credit exposure and the maximum exposure to any single counterparty was $0.1 million.\n\nSome of the agreements we have with our derivative counterparties contain cross-default provisions that could trigger a declaration of default on our derivative obligations if we default, or are capable of being declared in default, on certain of our indebtedness. At December 31, 2025, we had not been declared in default on any of our derivative obligations. The estimated fair value of our derivatives in a net liability position was $18.5 million and $0.9 million at December 31, 2025 and 2024, respectively, which included accrued interest and any nonperformance risk adjustments. If we had breached any of these provisions at December 31, 2025 or 2024, we could have been required to settle our obligations under these agreements at their aggregate termination value of $18.6 million and $0.9 million, respectively.\n\nNet Investment Hedges\n\nCertain borrowings under our Senior Unsecured Notes, Unsecured Revolving Credit Facility, and Unsecured Term Loans (all as defined in [Note 11](#i52e238857d8641668248158c9abdf12c_154)) denominated in euro, British pounds sterling, or Japanese yen are designated as, and are effective as, economic hedges of our net investments in foreign entities.\n\nExchange rate variations impact our financial results because the financial results of our foreign subsidiaries are translated to U.S. dollars each period, with the effect of exchange rate variations being recorded in Other comprehensive income (loss) as part of the cumulative foreign currency translation adjustment. As a result, changes in the value of our designated borrowings under our euro-denominated senior notes and changes in the value of our euro, British pound sterling, Japanese yen, and Canadian dollar borrowings under our Senior Unsecured Credit Facility, related to changes in the spot rates, will be reported in the same manner as foreign currency translation adjustments, which are recorded in Other comprehensive income (loss) as part of the cumulative foreign currency translation adjustment. Such (losses) gains related to non-derivative net investment hedges were $(491.8) million, $239.7 million, and $(121.8) million for the years ended December 31, 2025, 2024, and 2023, respectively.\n\nNote 11. Debt\n\nTerm Loan Agreement\n\nOn March 31, 2025, we refinanced our €500.0 million term loan (our “Unsecured Term Loan due 2029”), extending the maturity date by three years to April 24, 2029, with an option to extend the term loan by up to an additional year, subject to certain customary conditions. Pursuant to the credit agreement, the Unsecured Term Loan due 2029 borrowing rate at December 31, 2025 was 80 basis points over EURIBOR (as defined below). In conjunction with the refinancing of the Unsecured Term Loan due 2029, we executed variable-to-fixed interest rate swaps that fix the floating rate component of the per annum interest rate at 2.00% through the end of 2027, for a total annual interest rate of approximately 2.80% as of December 31, 2025 (inclusive of the current spread). The Unsecured Term Loan due 2029 is incorporated into the Senior Unsecured Credit Facility, which is described below.\n\nW. P. Carey 2025 10-K – 91\n\nNotes to Consolidated Financial Statements\n\nSenior Unsecured Credit Facility\n\nAs of both December 31, 2025 and 2024, we had a multi-currency senior unsecured credit facility, comprised of (i) a $2.0 billion unsecured revolving credit facility maturing on February 14, 2029 (our “Unsecured Revolving Credit Facility”), (ii) a £270.0 million term loan maturing on February 14, 2028 (our “GBP Term Loan due 2028”), and (iii) a €215.0 million term loan maturing on February 14, 2028 (our “EUR Term Loan due 2028”). We have an option to extend each of these term loans by up to an additional year, subject to certain customary conditions. The GBP Term Loan due 2028 borrowing rate at December 31, 2025 was 80 basis points over SONIA (as defined below). On March 31, 2025, we executed variable-to-fixed interest rate swaps that fix the floating rate component of the per annum interest rate on our GBP Term Loan due 2028 at 3.92% through the end of 2027, for a total per annum interest rate of approximately 4.72% as of December 31, 2025 (inclusive of the current spread). We refer to these term loans collectively as the “Unsecured Term Loans due 2028.” We refer to our Unsecured Term Loan due 2029 and Unsecured Term Loans due 2028 collectively as our “Unsecured Term Loans.” We refer to our Unsecured Revolving Credit Facility and our Unsecured Term Loans collectively as our “Senior Unsecured Credit Facility.”\n\nAs of December 31, 2025, the aggregate principal amount (of revolving and term loans) available under the Senior Unsecured Credit Facility was able to be increased up to an amount not to exceed the U.S. dollar equivalent of $4.35 billion, subject to the conditions to increase set forth in our credit agreement.\n\nAt December 31, 2025, our Unsecured Revolving Credit Facility had available capacity of approximately $1.6 billion (net of amounts reserved for standby letters of credit totaling $1.1 million). We currently incur an annual facility fee of 0.140% of the total commitment on our Unsecured Revolving Credit Facility based on (i) our credit ratings of BBB+ and Baa1 and (ii) the achievement of certain sustainability key performance indicators (“KPIs”) agreed to under the credit agreement, which is included within Interest expense in our consolidated statements of income.\n\nThe following table presents a summary of our Senior Unsecured Credit Facility (dollars in thousands):\n\nSenior Unsecured Credit Facility\nInterest Rate at December 31, 2025 (a)\n\nMaturity Date at December 31, 2025\nPrincipal Outstanding Balance at\nDecember 31,\n\n20252024\n\nUnsecured Term Loans: (b)\n\nUnsecured Term Loan due 2029 — borrowing in euros (c)\n\n2.80%\n4/24/2029$587,500 $519,450 \n\nGBP Term Loan due 2028 — borrowing in British pounds sterling (d)\n\n4.72%\n2/14/2028363,569 338,290 \n\nEUR Term Loan due 2028 — borrowing in euros\nEURIBOR + 0.80%\n2/14/2028252,625 223,363 \n\n1,203,694 1,081,103 \n\nUnsecured Revolving Credit Facility:\n\nBorrowing in U.S. dollars (e)\n\nSOFR + 0.735%\n2/14/2029258,000 — \n\nBorrowing in euros (c)\n\nEURIBOR + 0.735%\n2/14/202966,975 — \n\nBorrowing in Canadian dollars (f)\n\nCORRA + 0.735%\n2/14/202953,316 — \n\nBorrowing in British pounds sterling\nSONIA + 0.735%\n2/14/202941,743 40,094 \n\nBorrowing in Japanese yen (g)\n\nTIBOR + 0.735%\n2/14/202915,383 15,354 \n\n435,417 55,448 \n\n$1,639,111 $1,136,551 \n\n__________\n\n(a)The applicable interest rate at December 31, 2025 was based on the credit ratings for our Senior Unsecured Notes of BBB+/Baa1, our Leverage Ratio, and the achievement of certain sustainability KPIs.\n\n(b)Balances exclude unamortized discount of $6.9 million and $5.0 million at December 31, 2025 and 2024, respectively, and unamortized deferred financing costs of $0.4 million and $0.2 million at December 31, 2025 and 2024, respectively.\n\n(c)Interest rate is subject to variable-to-fixed interest rate swaps that fix the floating rate component of the per annum interest rate at 2.00% through December 31, 2027. Upon maturity of the interest rate swaps, the Unsecured Term Loan due 2029 will be subject to a variable interest rate based on the Euro Interbank Offered Rate (EURIBOR).\n\nW. P. Carey 2025 10-K – 92\n\nNotes to Consolidated Financial Statements\n\n(d)Interest rate is subject to variable-to-fixed interest rate swaps that fix the floating rate component of the per annum interest rate at 3.92% through December 31, 2027. Upon maturity of the interest rate swaps, the GBP Term Loan due 2028 will be subject to a variable interest rate based on the Sterling Overnight Index Average (SONIA).\n\n(e)SOFR means Secured Overnight Financing Rate.\n\n(f)CORRA means Canadian Overnight Repo Rate Average.\n\n(g)TIBOR means Tokyo Interbank Offered Rate.\n\nSenior Unsecured Notes\n\nAs set forth in the table below, we have euro and U.S. dollar-denominated senior unsecured notes outstanding with an aggregate principal balance outstanding of $7.0 billion at December 31, 2025 (the “Senior Unsecured Notes”).\n\nOn July 10, 2025, we completed an underwritten public offering of $400.0 million of 4.650% Senior Notes due 2030, at a price of 99.088% of par value. These 4.650% Senior Notes due 2030 have a five-year term and are scheduled to mature on July 15, 2030.\n\nInterest on the Senior Unsecured Notes is payable annually or semi-annually in arrears. The Senior Unsecured Notes can be redeemed at par within three months of their respective maturities, or we can call the notes at any time for the principal, accrued interest, and a make-whole amount based upon the applicable government bond yield plus 15 to 35 basis points (except for our 3.410% Senior Notes due 2029 and 3.700% Senior Notes due 2032, which are subject to different repayment provisions). The following table presents a summary of our Senior Unsecured Notes outstanding at December 31, 2025 (currency in thousands):\n\nPrincipal AmountCoupon RateMaturity DatePrincipal Outstanding Balance at December 31,\n\nSenior Unsecured Notes, netIssue Date20252024\n\n4.000% Senior Notes due 2025 (a)\n1/26/2015$450,000 4.000 %2/1/2025$— $450,000 \n\n2.250% Senior Notes due 2026\n10/9/2018€500,000 2.250 %4/9/2026587,500 519,450 \n\n4.250% Senior Notes due 2026\n9/12/2016$350,000 4.250 %10/1/2026350,000 350,000 \n\n2.125% Senior Notes due 2027\n3/6/2018€500,000 2.125 %4/15/2027587,500 519,450 \n\n1.350% Senior Notes due 2028\n9/19/2019€500,000 1.350 %4/15/2028587,500 519,450 \n\n3.850% Senior Notes due 2029\n6/14/2019$325,000 3.850 %7/15/2029325,000 325,000 \n\n3.410% Senior Notes due 2029\n9/28/2022€150,000 3.410 %9/28/2029176,250 155,835 \n\n0.950% Senior Notes due 2030\n3/8/2021€525,000 0.950 %6/1/2030616,875 545,422 \n\n4.650% Senior Notes due 2030\n7/10/2025$400,000 4.650 %7/15/2030400,000 — \n\n2.400% Senior Notes due 2031\n10/14/2020$500,000 2.400 %2/1/2031500,000 500,000 \n\n2.450% Senior Notes due 2032\n10/15/2021$350,000 2.450 %2/1/2032350,000 350,000 \n\n4.250% Senior Notes due 2032\n5/16/2024€650,000 4.250 %7/23/2032763,750 675,285 \n\n3.700% Senior Notes due 2032\n9/28/2022€200,000 3.700 %9/28/2032235,000 207,780 \n\n2.250% Senior Notes due 2033\n2/25/2021$425,000 2.250 %4/1/2033425,000 425,000 \n\n5.375% Senior Notes due 2034\n6/28/2024$400,000 5.375 %6/30/2034400,000 400,000 \n\n3.700% Senior Notes due 2034\n11/19/2024€600,000 3.700 %11/19/2034705,000 623,340 \n\nTotal principal outstanding$7,009,375 $6,566,012 \n\nUnamortized discount(29,819)(29,934)\n\nUnamortized deferred financing costs(29,295)(30,171)\n\nTotal$6,950,261 $6,505,907 \n\n__________\n\n(a)In February 2025, we repaid our $450 million of 4.000% Senior Notes due 2025 at maturity.\n\nW. P. Carey 2025 10-K – 93\n\nNotes to Consolidated Financial Statements\n\nCovenants\n\nThe credit agreements for our Senior Unsecured Credit Facility, each of the Senior Unsecured Notes, and certain of our non-recourse mortgage loan agreements include customary financial maintenance covenants that require us to maintain certain ratios and benchmarks at the end of each quarter. The credit agreement for our Senior Unsecured Credit Facility also contains various customary affirmative and negative covenants applicable to us and our subsidiaries, subject to materiality and other qualifications, baskets, and exceptions as outlined in the credit agreement. We were in compliance with all of these covenants at December 31, 2025.\n\nWe may make unlimited Restricted Payments (as defined in the credit agreement for our Senior Unsecured Credit Facility), as long as no non-payment default or financial covenant default has occurred before, or would on a pro forma basis occur as a result of, the Restricted Payment. In addition, we may make Restricted Payments in an amount required to (i) maintain our REIT status and (ii) as a result of that status, not pay federal or state income or excise tax, as long as the loans under the Credit Agreement have not been accelerated and no bankruptcy or event of default has occurred.\n\nObligations under the Unsecured Revolving Credit Facility may be declared immediately due and payable upon the occurrence of certain events of default as defined in the credit agreement for our Senior Unsecured Credit Facility, including failure to pay any principal when due and payable, failure to pay interest within five business days after becoming due, failure to comply with any covenant, representation or condition of any loan document, any change of control, cross-defaults, and certain other events as set forth in the credit agreement, with grace periods in some cases.\n\nNon-Recourse Mortgages\n\nNon-recourse mortgages consist of mortgage notes payable, which are collateralized by the assignment of real estate properties. For a list of our encumbered properties, please see [Schedule III — Real Estate and Accumulated Depreciation](#i52e238857d8641668248158c9abdf12c_187). At December 31, 2025, the weighted-average interest rate for our total non-recourse mortgage notes payable was 5.0% (all of which had fixed rates), with maturity dates ranging from January 2026 to February 2033. In January and February 2026, we repaid at maturity two non-recourse mortgage loans totaling approximately $22.4 million ([Note 18](#i52e238857d8641668248158c9abdf12c_181)).\n\nDuring the year ended December 31, 2024, we assumed five non-recourse mortgage loans with an aggregate outstanding principal balance totaling $66.0 million in connection with the acquisitions of certain properties. These mortgage loans have a weighted-average fixed annual interest rate of 4.5% and maturity dates ranging from May 2027 to September 2029.\n\nSee [Note 3](#i52e238857d8641668248158c9abdf12c_121) for a description of non-recourse mortgages derecognized in connection with the Spin-Off.\n\nRepayments During 2025\n\nDuring the year ended December 31, 2025, we repaid non-recourse mortgage loans at or close to maturity with an aggregate principal balance of approximately $265.1 million. The weighted-average interest rate for these non-recourse mortgage loans on their respective dates of repayment was 4.5%.\n\nRepayments During 2024\n\nDuring the year ended December 31, 2024, we (i) repaid non-recourse mortgage loans at or close to maturity with an aggregate principal balance of approximately $181.3 million and (ii) prepaid non-recourse mortgage loans totaling $33.8 million. We recognized an aggregate net loss on extinguishment of debt of $0.1 million on these repayments, which is included within Other gains and (losses) on our consolidated statements of income. The weighted-average interest rate for these non-recourse mortgage loans on their respective dates of repayment was 4.5%.\n\nInterest Paid\n\nFor the years ended December 31, 2025, 2024, and 2023, interest paid was $267.5 million, $256.6 million, and $269.7 million, respectively.\n\nW. P. Carey 2025 10-K – 94\n\nNotes to Consolidated Financial Statements\n\nForeign Currency Exchange Rate Impact\n\nDuring the year ended December 31, 2025, the U.S. dollar weakened against the euro and British pound sterling, resulting in an increase of $628.1 million in the aggregate carrying values of our Non-recourse mortgages, net, Senior Unsecured Credit Facility, and Senior Unsecured Notes, net from December 31, 2024 to December 31, 2025.\n\nScheduled Debt Principal Payments\n\nScheduled debt principal payments as of December 31, 2025 are as follows (in thousands):\n\nYears Ending December 31, Total\n\n2026$979,753 \n\n2027597,920 \n\n20281,279,593 \n\n20291,535,867 \n\n20301,017,519 \n\nThereafter through 20343,381,294 \n\nTotal principal payments8,791,946 \n\nUnamortized discount, net(39,189)\n\nUnamortized deferred financing costs(30,067)\n\nTotal$8,722,690 \n\nCertain amounts are based on the applicable foreign currency exchange rate at December 31, 2025.\n\nNote 12. Commitments and Contingencies\n\nAt December 31, 2025, we were not involved in any material litigation. Various claims and lawsuits arising in the normal course of business are pending against us. The results of these proceedings are not expected to have a material adverse effect on our consolidated financial position or results of operations. In addition, we capitalize our captive insurance company in accordance with applicable regulatory requirements ([Note 4](#i52e238857d8641668248158c9abdf12c_130)).\n\nW. P. Carey 2025 10-K – 95\n\nNotes to Consolidated Financial Statements\n\nNote 13. Equity\n\nCommon Stock\n\nDividends paid to stockholders consist of ordinary income, capital gains, return of capital or a combination thereof for income tax purposes. Our dividends per share are summarized as follows:\n\n Dividends Paid\n\nDuring the Years Ended December 31,\n\n 202520242023\n\nOrdinary income$3.3754 $3.0709 $3.8233 \n\nCapital gains0.2046 0.2363 0.3443 \n\nReturn of capital— 0.1628 0.8671 \n\nTotal dividends paid (a) (b)\n$3.5800 $3.4700 $5.0347 \n\n__________\n\n(a)A portion of dividends paid during 2026 (as described below) has been applied to 2025 for income tax purposes.\n\n(b)Amount for the year ended December 31, 2023 includes a distribution of $0.7627 per share representing the taxable distribution of shares of NLOP that occurred in conjunction with the Spin-Off on November 1, 2023 ([Note 3](#i52e238857d8641668248158c9abdf12c_121)). The per share distribution rate is based on the exchange ratio of one share of NLOP distributed for every 15 shares of WPC held and the fair market value of NLOP shares distributed in the Spin-Off, which was determined to be $11.44 per NLOP share, using a three-day volume weighted average price.\n\nDuring the fourth quarter of 2025, our Board declared a quarterly dividend of $0.920 per share, which was paid on January 15, 2026 to stockholders of record as of December 31, 2025.\n\nEarnings Per Share\n\nThe following table summarizes basic and diluted earnings (dollars in thousands):\n\n Years Ended December 31,\n\n 202520242023\n\nNet income – basic and diluted$466,359 $460,839 $708,334 \n\nWeighted-average shares outstanding – basic220,501,239 220,168,325 215,369,777 \n\nEffect of dilutive securities611,104 352,132 390,719 \n\nWeighted-average shares outstanding – diluted221,112,343 220,520,457 215,760,496 \n\n \n\nFor the years ended December 31, 2025, 2024, and 2023, potentially dilutive securities excluded from the computation of diluted earnings per share were insignificant.\n\nAcquisitions of Noncontrolling Interests\n\nOn May 30, 2023, we acquired the remaining 3% interest in an international jointly owned investment (which we already consolidated) from the noncontrolling interest holders for nominal consideration, bringing our ownership interest to 100%. No gain or loss was recognized on the transaction. We recorded an increase of approximately $1.2 million to Additional paid-in capital in our consolidated statements of equity for the year ended December 31, 2023 related to the difference between the consideration transferred and the carrying value of the noncontrolling interest related to this investment.\n\nOn July 18, 2023, we acquired the remaining 10% interest in a domestic jointly owned investment (which we already consolidated) from the noncontrolling interest holders for $2.4 million, bringing our ownership interest to 100%. No gain or loss was recognized on the transaction. We recorded an increase of approximately $2.5 million to Additional paid-in capital in our consolidated statements of equity for the year ended December 31, 2023 related to the difference between the consideration transferred and the carrying value of the noncontrolling interest related to this investment.\n\nW. P. Carey 2025 10-K – 96\n\nNotes to Consolidated Financial Statements\n\nATM Program and Forward Equity\n\nOn May 1, 2025, we established a continuous “at-the-market” offering program (“ATM Program”) with a syndicate of banks, pursuant to which shares of our common stock having an aggregate gross sales price of up to $1.25 billion may be sold (i) directly through or to the banks acting as sales agents or as principal for their own accounts or (ii) through or to participating banks or their affiliates acting as forward sellers on behalf of any forward purchasers pursuant to a forward sale agreement (our “ATM Forwards”). Effective as of that date, we terminated a prior ATM Program that was established on May 2, 2022, under which we were able to offer and sell shares of our common stock from time to time, up to an aggregate gross sales price of $1.0 billion, with a syndicate of banks.\n\nWe expect to settle the ATM Forwards in full on or prior to the maturity date of each ATM Forward via physical delivery of the outstanding shares of common stock in exchange for cash proceeds. However, subject to certain exceptions, we may also elect to cash settle or net share settle all or any portion of our obligations under any ATM Forwards. The forward sale price that we will receive upon physical settlement of the ATM Forwards will be (i) subject to adjustment on a daily basis based on a floating interest rate factor equal to a specified daily rate less a spread (i.e., if the specified daily rate is less than the spread on any day, the interest rate factor will result in a daily reduction of the applicable forward sale price) and (ii) decreased based on amounts related to expected dividends on shares of our common stock during the term of the ATM Forwards.\n\nWe determined that our ATM Forwards meet the criteria for equity classification and are therefore exempt from derivative accounting. We recorded the ATM Forwards at fair value at inception, which we determined to be zero. Subsequent changes to fair value are not required under equity classification.\n\nOur ATM Forwards are presented below (gross offering proceeds at closing in thousands):\n\nShares OfferedAverage Gross Offering PriceAverage Gross Offering Proceeds at Closing\nOutstanding Shares as of December 31, 2025\n\nATM Forwards (a)\n6,258,496$67.53 $422,621 6,258,496\n\n__________\n\n(a)We sold shares under our ATM Forwards during the three months and year ended December 31, 2025. We did not settle any of the shares sold and therefore did not receive any proceeds from such sales.\n\nW. P. Carey 2025 10-K – 97\n\nNotes to Consolidated Financial Statements\n\nReclassifications Out of Accumulated Other Comprehensive Loss\n\nThe following tables present a reconciliation of changes in Accumulated other comprehensive loss by component for the periods presented (in thousands):\n\nGains and (Losses) on Derivative InstrumentsForeign Currency Translation AdjustmentsTotal\n\nBalance at January 1, 2023\n$36,079 $(319,859)$(283,780)\n\nOther comprehensive income before reclassifications(9,599)19,758 10,159 \n\nOther comprehensive income derecognized in connection with the Spin-Off ([Note 3](#i52e238857d8641668248158c9abdf12c_121))\n— 35,664 35,664 \n\nAmounts reclassified from accumulated other comprehensive loss to:\n\nNon-operating income(14,874)— (14,874)\n\nInterest expense\n(1,956)— (1,956)\n\nTotal(16,830)— (16,830)\n\nNet current period other comprehensive income(26,429)55,422 28,993 \n\nNet current period other comprehensive income attributable to noncontrolling interests— (80)(80)\n\nBalance at December 31, 20239,650 (264,517)(254,867)\n\nOther comprehensive income before reclassifications20,901 (6,281)14,620 \n\nAmounts reclassified from accumulated other comprehensive loss to:\n\nNon-operating income(8,695)— (8,695)\n\nInterest expense(1,582)— (1,582)\n\nTotal(10,277)— (10,277)\n\nNet current period other comprehensive income10,624 (6,281)4,343 \n\nNet current period other comprehensive loss attributable to noncontrolling interests— 292 292 \n\nBalance at December 31, 202420,274 (270,506)(250,232)\n\nOther comprehensive loss before reclassifications(30,923)25,089 (5,834)\n\nAmounts reclassified from accumulated other comprehensive loss to:\n\nLoss on sale of real estate, net ([Note 16](#i52e238857d8641668248158c9abdf12c_175))\n— 7,854 7,854 \n\nNon-operating income(4,352)— (4,352)\n\nInterest expense(453)— (453)\n\nTotal(4,805)7,854 3,049 \n\nNet current period other comprehensive loss(35,728)32,943 (2,785)\n\nNet current period other comprehensive income attributable to noncontrolling interests— (329)(329)\n\nBalance at December 31, 2025$(15,454)$(237,892)$(253,346)\n\nSee [Note 10](#i52e238857d8641668248158c9abdf12c_151) for additional information on our derivatives activity recognized within Other comprehensive income (loss) for the periods presented.\n\nNote 14. Stock-Based and Other Compensation\n\nStock-Based Compensation\n\nAt December 31, 2025, we maintained the stock-based compensation plans described below. The total compensation expense (net of forfeitures) for awards issued under these plans was $39.9 million, $40.9 million, and $34.5 million for the years ended December 31, 2025, 2024, and 2023, respectively, which was included in Stock-based compensation expense in the consolidated financial statements.\n\nW. P. Carey 2025 10-K – 98\n\nNotes to Consolidated Financial Statements\n\nAmended and Restated 2017 Share Incentive Plan\n\nIn June 2024, our stockholders approved the Amended and Restated 2017 Share Incentive Plan (the “Plan”), which authorizes the issuance of up to 4,000,000 additional shares of our common stock and makes certain other changes. The Plan is more fully described in the registration statement on Form S-8 filed on June 14, 2024. The Plan provides for the grant of various stock- and cash-based awards, including (i) RSUs, (ii) PSUs, (iii) RSAs, and (iv) dividend equivalent rights. At December 31, 2025, 4,521,900 shares remained available for issuance under the Plan.\n\nNonvested RSAs, RSUs, and PSUs at December 31, 2025 and changes during the years ended December 31, 2025, 2024, and 2023 were as follows:\n\nRSA and RSU AwardsPSU Awards\n\nSharesWeighted-Average Grant Date Fair ValueSharesWeighted-Average Grant Date Fair Value\n\nNonvested at January 1, 2023\n376,298 $74.78 531,781 $89.14 \n\nGranted260,193 82.43 150,989 144.54 \n\nVested (a)\n(173,883)76.50 (218,147)104.65 \n\nForfeited (3,581)82.58 (3,487)107.72 \n\nAdjustment (b)\n(11,669)80.75 65,277 113.99 \n\nNonvested at December 31, 2023\n447,358 77.69 526,413 105.92 \n\nGranted300,657 63.11 213,645 82.95 \n\nVested (a)\n(181,581)74.99 (309,670)86.19 \n\nForfeited(6,831)72.38 (3,364)101.11 \n\nAdjustment (b)\n— — 124,509 80.73 \n\nNonvested at December 31, 2024\n559,603 70.26 551,533 101.20 \n\nGranted (c)\n306,628 57.67 227,702 74.78 \n\nVested (a)\n(238,872)69.61 (239,291)113.26 \n\nForfeited(11,451)61.97 (5,810)92.49 \n\nAdjustment (b)\n— — 159,686 71.19 \n\nNonvested at December 31, 2025 (d)\n615,908 $64.34 693,820 $88.40 \n\n__________\n\n(a)The grant date fair value of shares vested during the years ended December 31, 2025, 2024, and 2023 was $43.7 million, $40.3 million, and $36.1 million, respectively. Employees and non-employee directors have the option to take immediate delivery of the shares upon vesting or defer receipt to a future date pursuant to previously made deferral elections. At December 31, 2025 and 2024, we had an obligation to issue 1,335,743 and 1,391,456 shares, respectively, of our common stock underlying such deferred awards, which is recorded within Total stockholders’ equity as a Deferred compensation obligation of $80.2 million and $78.5 million, respectively.\n\n(b)Vesting and payment of the PSUs is conditioned upon certain company and/or market performance goals being met during the relevant three-year performance period. The ultimate number of PSUs to be vested will depend on the extent to which the performance goals are met and can range from zero to three times the original awards. As a result, we recorded adjustments to reflect the number of shares expected to be issued when the PSUs vest.\n\n(c)The grant date fair value of RSAs and RSUs reflect our stock price on the date of grant on a one-for-one basis. The grant date fair value of PSUs was determined utilizing a Monte Carlo simulation model to generate an estimate of our future stock price over the three-year performance period. To estimate the fair value of PSUs granted during the year ended December 31, 2025, we used a risk-free interest rate of 4.3%, an expected volatility rate of 21.5%, and assumed a dividend yield of zero.\n\n(d)At December 31, 2025, total unrecognized compensation expense related to these awards was approximately $39.2 million, with an aggregate weighted-average remaining term of 1.7 years.\n\nAt the end of each reporting period, we evaluate the ultimate number of PSUs we expect to vest (based upon the extent to which we have met and expect to meet the performance goals) and where appropriate, revise our estimate and associated expense. We do not revise the associated expense on PSUs expected to vest based on market performance. Upon vesting, the RSUs and PSUs may be converted into shares of our common stock. Both the RSUs and PSUs carry dividend equivalent rights. Dividend equivalent rights on RSUs issued under a predecessor employee plan are paid in cash on a quarterly basis, whereas dividend\n\nW. P. Carey 2025 10-K – 99\n\nNotes to Consolidated Financial Statements\n\nequivalent rights on RSUs issued under the Plan are accrued and paid in cash only when the underlying shares vest, which is generally on an annual basis. Dividend equivalents on PSUs accrue during the performance period and are converted into additional shares of common stock at the conclusion of the performance period to the extent the PSUs vest. Dividend equivalent rights are accounted for as a reduction to retained earnings to the extent that the awards are expected to vest.\n\nIn connection with the Spin-Off ([Note 3](#i52e238857d8641668248158c9abdf12c_121)), each RSU and PSU outstanding at November 1, 2023 received an equitable adjustment equal to the ratio of the five-day volume weighted average per-share price of our common stock prior to the Spin-Off divided by the five-day volume weighted average per-share of our common stock following the Spin-Off. Concurrently, our Board approved amending the performance vesting conditions assigned to the 2021 and 2022 PSU outstanding awards. The equitable adjustment and the amended performance vesting conditions were considered modifications in accordance with the provisions of ASC 718, Compensation-Stock Compensation. As a result, we compared the fair value of each award immediately prior to the modification to the fair value immediately after the modification to measure incremental compensation cost, if any. The modification resulted in minimal incremental fair value. The table above is inclusive of these adjustments.\n\nEmployee Share Purchase Plan\n\nWe sponsor an employee share purchase plan (“ESPP”) pursuant to which eligible employees may contribute up to 10% of compensation, subject to certain limits, to purchase our common stock semi-annually at a price equal to 90% of the fair market value at certain plan defined dates. Compensation expense under this plan for each of the years ended December 31, 2025, 2024, and 2023 was less than $0.1 million. Cash received from purchases under the ESPP during the years ended December 31, 2025, 2024, and 2023 was $0.2 million, $0.3 million, and $0.3 million, respectively.\n\nProfit-Sharing Plan\n\n \n\nWe sponsor a qualified profit-sharing plan and trust that generally permits all employees, as defined by the plan, to make pre-tax contributions into the plan. We are under no obligation to contribute to the plan and the amount of any contribution is determined by and at the discretion of our Board. In December 2025, 2024, and 2023, our Board determined that the contribution to the plan for each of those respective years would be 10% of an eligible participant’s cash compensation, up to $30,000 for 2025, $33,000 for 2024, and $33,000 for 2023. For the years ended December 31, 2025, 2024, and 2023, amounts expensed for contributions to the trust were $2.7 million, $2.8 million, and $2.6 million, respectively, which were included in General and administrative expenses in the consolidated financial statements. The profit-sharing plan is a deferred compensation plan and is therefore considered to be outside the scope of current accounting guidance for stock-based compensation.\n\nW. P. Carey 2025 10-K – 100\n\nNotes to Consolidated Financial Statements\n\nNote 15. Income Taxes\n\nIncome Tax Provision\n\nThe components of our provision for income taxes for the periods presented are as follows (in thousands):\n\nYears Ended December 31,\n\n202520242023\n\nFederal\n\nCurrent$588 $(450)$(291)\n\nDeferred(11)(71)— \n\n577 (521)(291)\n\nState and Local\n\nCurrent3,044 2,209 3,456 \n\n3,044 2,209 3,456 \n\nForeign\n\nCurrent39,161 34,195 41,085 \n\nDeferred(10,874)(4,174)(198)\n\n28,287 30,021 40,887 \n\nTotal Provision for Income Taxes$31,908 $31,709 $44,052 \n\nW. P. Carey 2025 10-K – 101\n\nNotes to Consolidated Financial Statements\n\nThe composition of income before income taxes for the year ended December 31, 2025 is as follows (in thousands):\n\nIncome before Income TaxesYear Ended December 31, 2025\n\nDomestic$285,029 \n\nInternational219,794 \n\nTotal$504,823 \n\nA reconciliation of effective income tax for the periods presented is as follows (in thousands):\n\nYear Ended December 31,\n\n2025\n\nIncome before income taxes\n$504,823 \n\nFederal provision at statutory tax rate$106,013 21.0 %\n\nREIT income not subject to federal income taxes(88,760)(17.6)%\n\nState and local taxes, net of federal benefit (a)\n3,038 0.6 %\n\nForeign Tax Effects:\n\nThe Netherlands:\n\nChange in valuation allowance(6,524)(1.3)%\n\nOther278 0.1 %\n\nUnited Kingdom6,822 1.4 %\n\nOther foreign jurisdictions11,561 2.3 %\n\nChanges in unrecognized tax benefits(1,421)(0.3)%\n\nChange in valuation allowance196 0.0 %\n\nOther705 0.1 %\n\nTotal Provision for Income Taxes$31,908 6.3 %\n\nYears Ended December 31,\n\n20242023\n\nIncome before income taxes attributable to taxable subsidiaries\n$63,669 $73,669 \n\nFederal provision at statutory tax rate (21%)\n$13,370 $15,471 \n\nNon-deductible expense6,227 3,201 \n\nChange in valuation allowance3,215 9,970 \n\nRate differential2,712 1,357 \n\nState and local taxes, net of federal benefit2,382 3,517 \n\nOther3,803 10,536 \n\nTotal Provision for Income Taxes$31,709 $44,052 \n\n__________\n\n(a)State taxes in California, North Carolina, Tennessee, and Texas made up the majority (greater than 50 percent) of the tax effect in this category.\n\nW. P. Carey 2025 10-K – 102\n\nNotes to Consolidated Financial Statements\n\nDeferred Income Taxes\n\nDeferred income taxes at December 31, 2025 and 2024 consist of the following (in thousands):\n\n December 31,\n\n 20252024\n\nDeferred Tax Assets  \n\nNet operating loss and other tax credit carryforwards$42,685 $47,134 \n\nBasis differences — foreign investments34,486 24,991 \n\nOther741 953 \n\nTotal deferred tax assets77,912 73,078 \n\nValuation allowance(44,761)(55,488)\n\nNet deferred tax assets33,151 17,590 \n\nDeferred Tax Liabilities  \n\nBasis differences — foreign investments(151,820)(147,462)\n\nTotal deferred tax liabilities(151,820)(147,462)\n\nNet Deferred Tax Liability$(118,669)$(129,872)\n\nOur deferred tax assets and liabilities are primarily the result of temporary differences related to the following:\n\n•Basis differences between tax and GAAP for certain international real estate investments. For income tax purposes, in certain acquisitions, we assume the seller’s basis, or the carry-over basis, in the acquired assets. The carry-over basis is typically lower than the purchase price, or the GAAP basis, resulting in a deferred tax liability with an offsetting increase to goodwill or the acquired tangible or intangible assets;\n\n•Timing differences generated by differences in the GAAP basis and the tax basis of assets such as those related to capitalized acquisition costs, straight-line rent, prepaid rents, and intangible assets, as well as unearned and deferred compensation; and\n\n•Tax net operating losses in certain subsidiaries, including those domiciled in foreign jurisdictions, that may be realized in future periods if the respective subsidiary generates sufficient taxable income. Certain net operating losses and interest carryforwards were subject to limitations as a result of certain business combinations, and thus could not be applied to reduce future income tax liabilities.\n\nAs of December 31, 2025, U.S. federal and state net operating loss carryforwards were $20.4 million and $12.7 million, respectively, which will begin to expire in 2033. As of December 31, 2025, net operating loss carryforwards in foreign jurisdictions were $105.9 million, which will begin to expire in 2026.\n\nThe net deferred tax liability in the table above is comprised of deferred tax asset balances, net of certain deferred tax liabilities and valuation allowances, of $33.2 million and $17.6 million at December 31, 2025 and 2024, respectively, which are included in Other assets, net in the consolidated balance sheets, and other deferred tax liability balances of $151.8 million and $147.5 million at December 31, 2025 and 2024, respectively, which are included in Deferred income taxes in the consolidated balance sheets.\n\nOur taxable subsidiaries recognize tax positions in the financial statements only when it is more likely than not that the position will be sustained on examination by the relevant taxing authority based on the technical merits of the position. A position that meets this standard is measured at the largest amount of benefit that will more likely than not be realized on settlement. A liability is established for differences between positions taken in a tax return and amounts recognized in the financial statements.\n\nW. P. Carey 2025 10-K – 103\n\nNotes to Consolidated Financial Statements\n\nThe following table presents a reconciliation of the beginning and ending amount of unrecognized tax benefits (in thousands):\n\n Years Ended December 31,\n\n 20252024\n\nBeginning balance$2,909 $5,112 \n\nDecrease based on tax positions related to the prior year(1,588)(1,379)\n\nAddition based on tax positions related to the current year1,543 77 \n\nDecrease due to lapse in statute of limitations(742)(745)\n\nForeign currency translation adjustments110 (156)\n\nEnding balance$2,232 $2,909 \n\nAt December 31, 2025 and 2024, we had unrecognized tax benefits as presented in the table above. These unrecognized tax benefits are recorded as liabilities within Accounts payable, accrued expenses and other liabilities on our consolidated balance sheets. We recognize interest and penalties related to uncertain tax positions in income tax expense. At December 31, 2025 and 2024, we had approximately $0.3 million and $1.0 million, respectively, of accrued interest related to uncertain tax positions.\n\nIncome Taxes Paid\n\nIncome taxes paid during the year ended December 31, 2025 consist of the following (in thousands):\n\nYear Ended December 31, 2025\n\nDomestic:\n\n Federal $(257)\n\n State and local 2,453 \n\n Foreign:\n\n The Netherlands 7,664 \n\n United Kingdom 6,642 \n\n Poland 4,561 \n\n Canada 3,559 \n\n France 2,954 \n\n Spain 2,193 \n\n Mexico 2,056 \n\n Other Foreign 8,270 \n\n Total Income Taxes Paid$40,095 \n\nIncome taxes paid were $36.3 million and $38.6 million during the years ended December 31, 2024, and 2023, respectively.\n\nREIT Qualification\n\nWe elected to be taxed as a REIT under Section 856 through 860 of the Internal Revenue Code effective as of February 15, 2012. In order to maintain our qualification as a REIT, we are required, among other things, to distribute at least 90% of our REIT net taxable income to our stockholders and meet certain tests regarding the nature of our income and assets. As a REIT, we are not subject to federal income taxes on our income and gains that we distribute to our stockholders as long as we satisfy certain requirements, principally relating to the nature of our income and the level of our distributions, as well as other factors. We believe that we have operated, and we intend to continue to operate, in a manner that allows us to continue to qualify as a REIT. We conduct business primarily in North America and Europe, and as a result, we or one or more of our subsidiaries file income tax returns in the United States federal jurisdiction and various state, local, and foreign jurisdictions.\n\nTax authorities in the relevant jurisdictions may select our tax returns for audit and propose adjustments before the expiration of the statute of limitations. Our tax returns filed for tax years 2020 through 2024 or any ongoing audits remain open to adjustment in the major tax jurisdictions.\n\nW. P. Carey 2025 10-K – 104\n\nNotes to Consolidated Financial Statements\n\nNote 16. Property Dispositions\n\nWe implemented the Office Sale Program in September 2023, which was completed in 2024 ([Note 1](#i52e238857d8641668248158c9abdf12c_115)).\n\nAll property dispositions are also discussed in [Note 5](#i52e238857d8641668248158c9abdf12c_133) and [Note 6](#i52e238857d8641668248158c9abdf12c_139). These dispositions exclude properties contributed to NLOP in the Spin-Off ([Note 3](#i52e238857d8641668248158c9abdf12c_121)).\n\n2025 — During the year ended December 31, 2025, we sold 128 properties for total proceeds, net of selling costs, of $1.5 billion, and recognized a net gain on these sales totaling $193.8 million (inclusive of (i) $6.0 million attributable to a noncontrolling interest and (ii) income taxes totaling $6.8 million recognized upon sale).\n\nThis disposition activity for the year ended December 31, 2025 includes the sale of 63 self-storage operating properties for total proceeds, net of selling costs, of $772.2 million, resulting in a net gain on these sales totaling $37.3 million. In addition, disposition activity for the year ended December 31, 2025 includes the sale of a student housing operating property for proceeds, net of selling costs, of $77.8 million, resulting in a net gain on sale of $9.3 million.\n\nIn connection with the sale of a property in Norway in December 2025, and in accordance with ASC 830-30-40, Foreign Currency Matters, we reclassified an aggregate of $7.9 million of net foreign currency translation losses from Accumulated other comprehensive loss to Gain on sale of real estate, net (as a decrease to Gain on sale of real estate, net), since the sale represented a disposal of all of our investments denominated in Norwegian krone ([Note 2](#i52e238857d8641668248158c9abdf12c_118), [Note 13](#i52e238857d8641668248158c9abdf12c_160)).\n\n2024 — During the year ended December 31, 2024, we sold 176 properties for total proceeds, net of selling costs, of $1.2 billion, and recognized a net gain on these sales totaling $68.4 million (inclusive of income taxes totaling $7.3 million recognized upon sale). One of the properties sold during 2024 was a hotel operating property.\n\nThis disposition activity for the year ended December 31, 2024 includes the sale of 78 properties under the Office Sale Program for total proceeds, net of selling costs, of $524.8 million, resulting in a net gain on these sales totaling $3.9 million.\n\n2023 — During the year ended December 31, 2023, we sold 31 properties for total proceeds, net of selling costs, of $446.4 million, and recognized a net gain on these sales totaling $80.7 million (inclusive of income taxes totaling $1.6 million recognized upon sale). Eight of the properties sold during 2023 were hotel operating properties.\n\nThis disposition activity includes the sale of eight properties under the Office Sale Program for total proceeds, net of selling costs, of $216.9 million, resulting in a net gain on these sales totaling $3.6 million.\n\nNote 17. Segment Information\n\nReportable Segment Information\n\nThe Company operates as one reportable segment. Our business is characterized as investing primarily in operationally-critical, single-tenant commercial real estate properties that are principally leased on a long-term basis. These economic characteristics are similar across various property types, geographic locations, and industries in which our tenants operate and therefore considered one operating segment. Our consolidated operating results, including net income, are regularly reviewed, in the aggregate, by our CODM to evaluate performance and allocate resources, which can be found on our consolidated financial statements ([Note 1](#i52e238857d8641668248158c9abdf12c_115), [Note 2](#i52e238857d8641668248158c9abdf12c_118)).\n\nOur revenues are largely derived from the long-term leases that we execute with tenants. These revenues are classified as either Lease revenues ([Note 5](#i52e238857d8641668248158c9abdf12c_133)) or Income from finance leases and loans receivable ([Note 6](#i52e238857d8641668248158c9abdf12c_139)) in accordance with ASC 842, Leases.\n\nOur operating expenses are regularly reviewed by our CODM. All expenses are reviewed, but our CODM is regularly provided with the following significant expenses, which are included in our consolidated financial statements and require no additional disaggregation: General and administrative expenses, Property expenses, excluding reimbursable tenant costs, Interest expense, and Provision for income taxes.\n\nW. P. Carey 2025 10-K – 105\n\nNotes to Consolidated Financial Statements\n\nGeographic Information\n\nOur portfolio is comprised of domestic and international investments. At December 31, 2025, our international investments were comprised of investments in Austria, Belgium, Canada, Croatia, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Italy, Japan, Latvia, Lithuania, Mauritius, Mexico, the Netherlands, Poland, Portugal, Slovakia, Spain, Sweden, and the United Kingdom. We sold all of our investments in Norway during 2025 ([Note 16](#i52e238857d8641668248158c9abdf12c_175)). No tenant or international country individually comprised at least 10% of our total lease revenues for the years ended December 31, 2025, 2024, or 2023, or at least 10% of our total long-lived assets at December 31, 2025 or 2024. The following tables present the geographic information (in thousands):\n\nYears Ended December 31,\n\n202520242023\n\nRevenues\n\nDomestic$1,092,612 $1,013,217 $1,154,863 \n\nInternational623,873 569,801 586,495 \n\nTotal$1,716,485 $1,583,018 $1,741,358 \n\n December 31,\n\n 20252024\n\nLong-lived Assets\n\nDomestic$9,507,419 $9,273,858 \n\nInternational5,961,755 5,306,617 \n\nTotal$15,469,174 $14,580,475 \n\nEquity Method Investments\n\nDomestic$274,208 $273,141 \n\nInternational35,970 27,974 \n\nTotal$310,178 $301,115 \n\nNote 18. Subsequent Events\n\nAcquisitions and Completed Construction Projects\n\nIn January and February 2026, we completed five acquisitions totaling approximately $262.4 million. They are as follows:\n\n•$2.2 million for a retail facility in Las Vegas, New Mexico;\n\n•$9.4 million for a manufacturing facility in Arlington Heights, Illinois;\n\n•$185.0 million for a portfolio of six warehouse facilities and one office facility in Poland;\n\n•$43.4 million for an industrial facility in Glenwillow, Ohio; and\n\n•$22.3 million for two manufacturing facilities in Peebles, Ohio, and one manufacturing facility in Hope, Arkansas.\n\nIn addition, in January 2026, we completed two construction projects totaling approximately $29.3 million. They are as follows:\n\n•$17.6 million for a build-to-suit at an existing retail facility in Amsterdam, the Netherlands; and\n\n•$11.6 million for a build-to-suit retail facility in Surprise, Arizona.\n\nDispositions\n\nIn January and February 2026, we sold four properties for gross proceeds totaling $60.2 million. One of these properties was classified as held for sale as of December 31, 2025 ([Note 5](#i52e238857d8641668248158c9abdf12c_133)).\n\nMortgage Loan Repayments\n\nIn January and February 2026, we repaid at maturity two non-recourse mortgage loans totaling approximately $22.4 million.\n\nW. P. Carey 2025 10-K – 106\n\nW. P. CAREY INC.\n\nSCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS\n\nYears Ended December 31, 2025, 2024, and 2023\n\n(in thousands) \n\nDescriptionBalance at Beginning of Year Other AdditionsDeductionsBalance at End of Year\n\nYear Ended December 31, 2025\n\nValuation reserve for deferred tax assets$55,488 $10,487 $(21,214)$44,761 \n\nYear Ended December 31, 2024\n\nValuation reserve for deferred tax assets$69,800 $6,731 $(21,043)$55,488 \n\nYear Ended December 31, 2023\n\nValuation reserve for deferred tax assets$106,185 $19,107 $(55,492)$69,800 \n\nW. P. Carey 2025 10-K – 107\n\nW. P. CAREY INC.\n\nSCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION\n\nDecember 31, 2025\n\n(in thousands)\n\nInitial Cost to Company\nCost Capitalized Subsequent to\nAcquisition (a)\n\nIncrease \n(Decrease)\nin Net\nInvestments (b)\n\nGross Amount at which \nCarried at Close of Period (c) (d)\n\nAccumulated Depreciation (d)\nDate of ConstructionDate AcquiredLife on which\nDepreciation in Latest\nStatement of \nIncome\nis Computed\n\nDescriptionEncumbrancesLandBuildingsLandBuildingsTotal\n\nReal Estate Subject to Operating Leases\n\nIndustrial facilities in Erlanger, KY$— $1,526 $21,427 $2,966 $(84)$1,526 $24,309 $25,835 $17,156 1979; 1987Jan. 1998\n40 yrs.\n\nIndustrial facilities in Thurmont, MD and Farmington, NY— 729 5,903 — — 729 5,903 6,632 4,602 1964; 1983Jan. 1998\n15 yrs.\n\nWarehouse facility in Commerce, CA— 4,905 11,898 — (3,043)4,573 9,187 13,760 7,198 1948Jan. 1998\n40 yrs.\n\nIndustrial facility in Goshen, IN— 239 940 — — 239 940 1,179 745 1973Jan. 1998\n40 yrs.\n\nIndustrial facilities in Sylmar, CA— 2,052 5,322 — (1,889)1,494 3,991 5,485 2,800 1962; 1979Jan. 1998\n40 yrs.\n\nRetail facilities in the United States— 9,382 — 238 13,778 9,025 14,373 23,398 13,384 VariousJan. 1998\n15 yrs.\n\nLand in Glendora, CA— 1,135 — — 17 1,152 — 1,152 — N/AJan. 1998N/A\n\nWarehouse facility in Doraville, GA— 3,288 9,864 17,079 (11,410)3,288 15,533 18,821 4,332 2016Jan. 1998\n40 yrs.\n\nWarehouse facility in Corpus Christi, TX— 3,490 72,497 3,615 (77,927)288 1,387 1,675 916 1989Jan. 1998\n40 yrs.\n\nLand in Irving and Houston, TX— 9,795 — — — 9,795 — 9,795 — N/AJan. 1998N/A\n\nWarehouse facility in Memphis, TN— 1,882 3,973 294 (3,892)328 1,929 2,257 1,843 1969Jan. 1998\n15 yrs.\n\nIndustrial facility in Romulus, MI— 454 6,411 525 — 454 6,936 7,390 4,851 1970Jan. 1998\n10 yrs.\n\nRetail facility in Bellevue, WA— 4,125 11,812 393 (123)4,371 11,836 16,207 7,976 1994Apr. 1998\n40 yrs.\n\nIndustrial facility in Winston-Salem, NC— 1,860 12,539 4,775 (7,325)925 10,924 11,849 6,726 1980Sep. 2002\n40 yrs.\n\nWarehouse facility in Greenfield, IN— 2,807 10,335 223 (8,383)967 4,015 4,982 2,718 1995Sep. 2004\n40 yrs.\n\nWarehouse facilities in Apopka, FL — 362 10,855 1,629 (3,330)337 9,179 9,516 4,167 1969Sep. 2004\n40 yrs.\n\nLand in San Leandro, CA— 1,532 — — — 1,532 — 1,532 — N/ADec. 2006N/A\n\nRetail facility in Austin, TX— 1,725 5,168 — — 1,725 5,168 6,893 3,461 1995Dec. 2006\n29 yrs.\n\nRetail facility in Wroclaw, Poland— 3,600 10,306 — (3,280)2,938 7,688 10,626 3,425 2007Dec. 2007\n40 yrs.\n\nRetail and warehouse facilities in Spain— 50,231 82,613 239 2,702 50,920 84,865 135,785 13,576 VariousVarious\n40 yrs.\n\nIndustrial facilities in Auburn, IN; Clinton Township, MI; and Bluffton, OH— 4,403 20,298 — (3,870)2,589 18,242 20,831 7,832 1968; 1975; 1995Sep. 2012; Jan. 2014\n30 yrs.\n\nIndustrial facility in Irvine, CA— 4,173 — 15,566 — 4,173 15,566 19,739 580 2024Sep. 2012\n40 yrs.\n\nIndustrial facility in Alpharetta, GA— 2,198 6,349 1,247 — 2,198 7,596 9,794 3,552 1997Sep. 2012\n30 yrs.\n\nWarehouse facility in St. Petersburg, FL— 3,280 24,627 4,736 (20,393)1,814 10,436 12,250 4,555 1996Sep. 2012\n30 yrs.\n\nRetail facility in Baton Rouge, LA— 4,168 5,724 3,200 — 4,168 8,924 13,092 4,321 2003Sep. 2012\n30 yrs.\n\nIndustrial facility in Richmond, CA— 895 1,953 — — 895 1,953 2,848 865 1999Sep. 2012\n30 yrs.\n\nWarehouse facilities in the United States— 16,386 84,668 17,383 (14,825)15,208 88,404 103,612 35,786 VariousSep. 2012\n30 yrs.\n\nIndustrial facilities in Rocky Mount, NC and Lewisville, TX— 2,163 17,715 1,324 (8,389)1,132 11,681 12,813 4,901 1948; 1989Sep. 2012\n30 yrs.\n\nIndustrial facilities in Chattanooga, TN— 558 5,923 — — 558 5,923 6,481 2,594 1974; 1989Sep. 2012\n30 yrs.\n\nIndustrial facility in Mooresville, NC— 756 9,775 — — 756 9,775 10,531 4,269 1997Sep. 2012\n30 yrs.\n\nIndustrial facility in McCalla, AL— 960 14,472 42,662 (254)2,076 55,764 57,840 17,994 2004Sep. 2012\n31 yrs.\n\nIndustrial facility in Fort Smith, AZ— 1,063 6,159 — — 1,063 6,159 7,222 2,661 1982Sep. 2012\n30 yrs.\n\nW. P. Carey 2025 10-K – 108\n\nSCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)\n\nDecember 31, 2025\n\n(in thousands)\n\nInitial Cost to Company\nCost Capitalized\nSubsequent to\nAcquisition (a)\n\nIncrease \n(Decrease)\nin Net\nInvestments (b)\n\nGross Amount at which \nCarried at Close of Period (c) (d)\n\nAccumulated Depreciation (d)\nDate of ConstructionDate AcquiredLife on which\nDepreciation in Latest\nStatement of \nIncome\nis Computed\n\nDescriptionEncumbrancesLandBuildingsLandBuildingsTotal\n\nRetail facilities in Greenwood, IN, Freehold, NJ, and Buffalo, NY— — 19,990 — 1,765 — 21,755 21,755 10,173 2000; 2003; 2004Sep. 2012\n13 - 31 yrs.\n\nIndustrial facilities in Bowling Green, KY and Jackson, TN— 1,492 8,182 600 — 1,492 8,782 10,274 3,641 1989; 1995Sep. 2012\n31 yrs.\n\nEducation facility in Rancho Cucamonga, CA and laboratory facility in Exton, PA— 14,006 33,683 12,194 (20,143)6,638 33,102 39,740 12,275 2004Sep. 2012\n31 - 32 yrs.\n\nIndustrial facilities in St. Petersburg, FL; Buffalo Grove, IL; West Lafayette, IN; Excelsior Springs, MO; and North Versailles, PA— 6,559 19,078 4,637 (2,921)5,751 21,602 27,353 8,175 VariousSep. 2012\n31 yrs.\n\nIndustrial and warehouse facility in Mesquite, TX— 2,702 13,029 1,700 — 2,702 14,729 17,431 1,941 1972Sep. 2012\n31 yrs.\n\nIndustrial facilities in Tolleson, AZ and Solvay, NY— 6,080 23,424 810 (13,860)3,658 12,796 16,454 5,401 1994; 2000Sep. 2012\n31 yrs.\n\nRetail facility in Memphis, TN— 4,877 4,258 5,215 (2,353)2,027 9,970 11,997 6,179 1990Sep. 2012\n31 yrs.\n\nWarehouse facilities in Oceanside, CA and Concordville, PA— 3,333 8,270 1,805 — 3,333 10,075 13,408 3,620 1989; 1996Sep. 2012\n31 yrs.\n\nWarehouse facility in La Vista, NE14,661 4,196 23,148 3,495 — 4,196 26,643 30,839 9,185 2005Sep. 2012\n33 yrs.\n\nLaboratory facility in Pleasanton, CA— 3,675 7,468 14,855 — 3,675 22,323 25,998 4,104 2000Sep. 2012\n40 yrs.\n\nIndustrial facilities in Hollywood and Orlando, FL — 3,639 1,269 — — 3,639 1,269 4,908 528 1996Sep. 2012\n31 yrs.\n\nWarehouse facility in Golden, CO— 808 4,304 77 — 808 4,381 5,189 1,986 1998Sep. 2012\n30 yrs.\n\nIndustrial facility in Texarkana, TX— 1,755 4,493 — (2,783)216 3,249 3,465 1,352 1997Sep. 2012\n31 yrs.\n\nIndustrial facility in South Jordan, UT— 2,183 11,340 2,609 — 2,183 13,949 16,132 5,574 1995Sep. 2012\n31 yrs.\n\nWarehouse facility in Ennis, TX— 478 4,087 145 (145)478 4,087 4,565 1,701 1989Sep. 2012\n31 yrs.\n\nSpecialty facility in Paris, France— 23,387 43,450 703 (5,750)21,369 40,421 61,790 16,277 1975Sep. 2012\n32 yrs.\n\nRetail facilities in Poland— 26,564 72,866 — (8,625)24,228 66,577 90,805 37,101 VariousSep. 2012\n23 - 34 yrs.\n\nIndustrial facilities in Danbury, CT and Bedford, MA— 3,519 16,329 50,871 (8,461)1,667 60,591 62,258 5,988 1965; 1980Sep. 2012\n29 yrs.\n\nIndustrial facility in Brownwood, TX— 722 6,268 — — 722 6,268 6,990 2,925 1964Sep. 2012\n15 yrs.\n\nIndustrial facility in Rochester, MN— 809 14,236 4,440 — 809 18,676 19,485 2,648 1997Sep. 2012\n31 yrs.\n\nRetail facilities in Germany— 16,146 83,746 11 (12,300)15,034 72,569 87,603 4,911 VariousSep. 2012\n29 yrs.\n\nRetail facility in Houston, TX— 2,430 2,270 — — 2,430 2,270 4,700 1,207 1995Jan. 2014\n23 yrs.\n\nRetail facility in St. Charles, MO— 1,966 1,368 1,980 — 1,966 3,348 5,314 1,782 1987Jan. 2014\n27 yrs.\n\nIndustrial facility in Aurora, CO— 737 2,609 1,206 — 737 3,815 4,552 1,110 1985Jan. 2014\n32 yrs.\n\nWarehouse facility in Burlington, NJ— 3,989 6,213 377 — 3,989 6,590 10,579 3,118 1999Jan. 2014\n26 yrs.\n\nIndustrial facility in Albuquerque, NM— 2,467 3,476 715 — 2,467 4,191 6,658 1,945 1993Jan. 2014\n27 yrs.\n\nIndustrial facility in North Salt Lake, UT— 10,601 17,626 — (16,936)4,388 6,903 11,291 3,144 1981Jan. 2014\n26 yrs.\n\nIndustrial facility in Lexington, NC— 2,185 12,058 601 (2,519)494 11,831 12,325 4,939 2003Jan. 2014\n28 yrs.\n\nIndustrial facility in Dallas, TX— 3,190 10,010 — — 3,190 10,010 13,200 1,087 1968Jan. 2014\n32 yrs.\n\nLand in Welcome, NC— 980 11,230 — (11,724)486 — 486 — N/AJan. 2014N/A\n\nW. P. Carey 2025 10-K – 109\n\nSCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)\n\nDecember 31, 2025\n\n(in thousands)\n\nCost Capitalized\nSubsequent to\nAcquisition (a)\n\nIncrease \n(Decrease)\nin Net\nInvestments (b)\n\nGross Amount at which \nCarried at Close of Period (c) (d)\n\nAccumulated Depreciation (d)\nDate of ConstructionDate AcquiredLife on which\nDepreciation in Latest\nStatement of \nIncome\nis Computed\n\nInitial Cost to Company\n\nDescriptionEncumbrancesLandBuildingsLandBuildingsTotal\n\nIndustrial facilities in Evansville, IN; Lawrence, KS; and Baltimore, MD— 4,005 44,192 21,685 — 5,054 64,828 69,882 26,004 1911; 1967; 1982Jan. 2014\n24 yrs.\n\nIndustrial facilities in Colton, CA; Bonner Springs, KS; Eagan, MN; and Dallas, TX— 8,451 25,457 — 11,200 8,451 36,657 45,108 11,687 VariousJan. 2014\n17 - 34 yrs.\n\nRetail facility in Torrance, CA— 8,412 12,241 8,062 (77)8,335 20,303 28,638 7,600 1973Jan. 2014\n25 yrs.\n\nWarehouse facility in Houston, TX— 6,578 424 560 — 6,578 984 7,562 920 1978Jan. 2014\n27 yrs.\n\nWarehouse facility in Norwich, CT— 3,885 21,342 — 2 3,885 21,344 25,229 9,004 1960Jan. 2014\n28 yrs.\n\nWarehouse facility in Norwich, CT— 1,437 9,669 — — 1,437 9,669 11,106 4,079 2005Jan. 2014\n28 yrs.\n\nWarehouse facility in Whitehall, PA— 7,435 9,093 27,791 (9,525)6,983 27,811 34,794 3,239 2021Jan. 2014\n40 yrs.\n\nRetail facility in York, PA— 3,776 10,092 — (6,413)527 6,928 7,455 2,446 2005Jan. 2014\n34 yrs.\n\nWarehouse facilities in Atlanta, GA and Elkwood, VA— 5,356 4,121 17,441 (3,219)4,284 19,415 23,699 1,282 1975Jan. 2014\n28 yrs.\n\nWarehouse facility in Harrisburg, NC— 1,753 5,840 781 (111)1,642 6,621 8,263 2,898 2000Jan. 2014\n26 yrs.\n\nIndustrial facility in Chandler, AZ; and industrial and warehouse facility in Englewood, CO— 4,306 7,235 802 3 4,306 8,040 12,346 2,892 1978; 1987Jan. 2014\n30 yrs.\n\nIndustrial facility in Cynthiana, KY— 1,274 3,505 525 (107)1,274 3,923 5,197 1,706 1967Jan. 2014\n31 yrs.\n\nIndustrial facilities in Albemarle and Old Fort, NC and Holmesville, OH— 5,507 18,653 — — 5,507 18,653 24,160 2,453 1955; 1966; 1970Jan. 2014\n32 yrs.\n\nIndustrial facility in Columbia, SC— 2,843 11,886 — — 2,843 11,886 14,729 6,271 1962Jan. 2014\n23 yrs.\n\nRetail facility in Midlothian, VA— 2,824 16,618 — — 2,824 16,618 19,442 4,196 2000Jan. 2014\n40 yrs.\n\nSpecialty facility in Laramie, WY— 1,966 18,896 — — 1,966 18,896 20,862 7,531 2007Jan. 2014\n33 yrs.\n\nWarehouse facilities in Mendota, IL; Toppenish, WA; and Plover, WI— 1,444 21,208 — (623)1,382 20,647 22,029 10,976 1996Jan. 2014\n23 yrs.\n\nLand in Sunnyvale, CA— 9,297 24,086 — (26,077)7,306 — 7,306 — N/AJan. 2014N/A\n\nIndustrial facilities in Hampton, NH— 8,990 7,362 — — 8,990 7,362 16,352 2,892 1976Jan. 2014\n30 yrs.\n\nIndustrial facilities in France— 36,306 5,212 7,906 8,224 26,892 30,756 57,648 6,003 VariousJan. 2014\n23 yrs.\n\nRetail facility in Lombard, IL— 5,087 8,578 — — 5,087 8,578 13,665 3,882 1999Jan. 2014\n26 yrs.\n\nWarehouse facility in Plainfield, IN— 1,578 29,415 2,176 — 1,578 31,591 33,169 12,055 1997Jan. 2014\n30 yrs.\n\nRetail facility in Kennesaw, GA— 2,849 6,180 5,530 (76)2,773 11,710 14,483 5,758 1999Jan. 2014\n26 yrs.\n\nRetail facility in Leawood, KS— 1,487 13,417 2,977 — 1,487 16,394 17,881 6,071 1997Jan. 2014\n26 yrs.\n\nIndustrial facility in Tolland, CT— 1,817 5,709 — 11 1,817 5,720 7,537 2,486 1968Jan. 2014\n28 yrs.\n\nWarehouse facility in Lincolnton, NC— 1,962 9,247 310 (2,235)1,754 7,530 9,284 3,064 1996Jan. 2014\n28 yrs.\n\nRetail facilities in Germany— 81,109 153,927 11,756 (164,649)18,953 63,190 82,143 25,374 VariousJan. 2014Various\n\nLaboratory facility in The Woodlands, TX— 3,204 24,997 2,826 — 3,204 27,823 31,027 9,613 1997Jan. 2014\n32 yrs.\n\nWarehouse facilities in Valdosta, GA and Johnson City, TN— 1,080 14,998 1,841 — 1,080 16,839 17,919 7,403 1978; 1998Jan. 2014\n27 yrs.\n\nIndustrial facility in Amherst, NY— 674 7,971 — — 674 7,971 8,645 4,238 1984Jan. 2014\n23 yrs.\n\nW. P. Carey 2025 10-K – 110\n\nSCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)\n\nDecember 31, 2025\n\n(in thousands)\n\nCost Capitalized\nSubsequent to\nAcquisition (a)\n\nIncrease \n(Decrease)\nin Net\nInvestments (b)\n\nGross Amount at which \nCarried at Close of Period (c) (d)\n\nAccumulated Depreciation (d)\nDate of ConstructionDate AcquiredLife on which\nDepreciation in Latest\nStatement of \nIncome\nis Computed\n\nInitial Cost to Company\n\nDescriptionEncumbrancesLandBuildingsLandBuildingsTotal\n\nIndustrial and warehouse facilities in Westfield, MA— 1,922 9,755 7,435 9 1,922 17,199 19,121 8,250 1954; 1997Jan. 2014\n28 yrs.\n\nRetail facility in Cresskill, NJ— 2,366 5,482 — 19 2,366 5,501 7,867 2,104 1975Jan. 2014\n31 yrs.\n\nRetail facility in Livingston, NJ— 2,932 2,001 — 14 2,932 2,015 4,947 884 1966Jan. 2014\n27 yrs.\n\nRetail facility in Montclair, NJ— 1,905 1,403 — 6 1,905 1,409 3,314 618 1950Jan. 2014\n27 yrs.\n\nRetail facility in Morristown, NJ— 3,258 8,352 — 26 3,258 8,378 11,636 3,675 1973Jan. 2014\n27 yrs.\n\nRetail facility in Summit, NJ— 1,228 1,465 — 8 1,228 1,473 2,701 646 1950Jan. 2014\n27 yrs.\n\nIndustrial facilities in Georgetown, TX and Woodland, WA— 965 4,113 35 — 965 4,148 5,113 1,460 1998; 2001Jan. 2014\n33 - 35 yrs.\n\nEducation facilities in Union, NJ; Allentown, PA; and Grand Prairie, TX— 5,365 7,845 — (2,397)5,007 5,806 10,813 2,486 1950; 1969; 1972Jan. 2014\n28 yrs.\n\nIndustrial facility in Salisbury, NC— 1,499 8,185 — — 1,499 8,185 9,684 3,515 2000Jan. 2014\n28 yrs.\n\nIndustrial facility in Twinsburg, OH— 2,831 10,565 386 (6,975)1,293 5,514 6,807 2,404 1991Jan. 2014\n27 yrs.\n\nIndustrial facility in Cambridge, Canada— 1,849 7,371 — (1,692)1,510 6,018 7,528 2,295 2001Jan. 2014\n31 yrs.\n\nIndustrial facilities in Peru, IL; Huber Heights, Lima, and Sheffield, OH; and Lebanon, TN— 2,962 17,832 — — 2,962 17,832 20,794 6,800 VariousJan. 2014\n31 yrs.\n\nIndustrial facility in Ramos Arizpe, Mexico — 1,059 2,886 — — 1,059 2,886 3,945 1,098 2000Jan. 2014\n31 yrs.\n\nIndustrial facilities in Salt Lake City, UT— 2,783 3,773 — — 2,783 3,773 6,556 1,438 1983; 2002Jan. 2014\n31 - 33 yrs.\n\nSpecialty facility in Blairsville, PA— 1,631 23,163 — — 1,631 23,163 24,794 9,053 2005Jan. 2014\n33 yrs.\n\nEducation facility in Mooresville, NC— 1,795 15,955 — — 1,795 15,955 17,750 2,430 2002Jan. 2014\n33 yrs.\n\nWarehouse facilities in Atlanta, Doraville, and Rockmart, GA— 6,488 77,192 — — 6,488 77,192 83,680 51,534 1959; 1962; 1991Jan. 2014\n23 - 33 yrs.\n\nWarehouse facility in Muskogee, OK— 554 4,353 — (3,437)158 1,312 1,470 477 1992Jan. 2014\n33 yrs.\n\nIndustrial facility in Richmond, MO— 2,211 8,505 747 — 2,211 9,252 11,463 4,002 1996Jan. 2014\n28 yrs.\n\nIndustrial facility in Tuusula, Finland— 6,173 10,321 — (2,256)5,329 8,909 14,238 4,164 1975Jan. 2014\n26 yrs.\n\nWarehouse facility in Phoenix, AZ— 6,747 21,352 2,024 20 6,747 23,396 30,143 9,549 1996Jan. 2014\n28 yrs.\n\nIndustrial facilities in the United States— 4,816 31,712 5,094 9,461 5,780 45,303 51,083 4,080 VariousJan. 2014\n30 - 32 yrs.\n\nIndustrial facilities in Sandersville, GA; Erwin, TN; and Gainesville, TX— 955 4,779 — — 955 4,779 5,734 1,837 1950; 1986; 1996Jan. 2014\n31 yrs.\n\nIndustrial facility in Buffalo Grove, IL— 1,492 12,233 3,030 20 1,492 15,283 16,775 4,839 1996Jan. 2014\n31 yrs.\n\nWarehouse facility in Carlsbad, CA— 3,230 5,492 1,062 — 3,230 6,554 9,784 2,775 1999Jan. 2014\n24 yrs.\n\nRetail facility in Port St. Lucie, FL— 4,654 2,576 — — 4,654 2,576 7,230 1,123 2000Jan. 2014\n27 yrs.\n\nIndustrial facility in Nurieux-Volognat, France— 121 5,328 723 (606)104 5,462 5,566 1,778 2000Jan. 2014\n32 yrs.\n\nIndustrial facility in Monheim, Germany— 2,500 5,727 — 105 2,537 5,795 8,332 767 1992Jan. 2014\n32 yrs.\n\nWarehouse facility in Suwanee, GA— 2,330 8,406 — — 2,330 8,406 10,736 2,961 1995Jan. 2014\n34 yrs.\n\nRetail facilities in Wichita, KS and Oklahoma City, OK and warehouse facility in Wichita, KS— 1,878 8,579 3,128 (89)1,878 11,618 13,496 4,762 1954; 1975; 1984Jan. 2014\n24 yrs.\n\nW. P. Carey 2025 10-K – 111\n\nSCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)\n\nDecember 31, 2025\n\n(in thousands)\n\nInitial Cost to Company\nCost Capitalized\n\nSubsequent to\n\nAcquisition (a)\n\nIncrease \n\n(Decrease)\n\nin Net\n\nInvestments (b)\n\nGross Amount at which \n\nCarried at Close of Period (c) (d)\n\nAccumulated Depreciation (d)\nDate of ConstructionDate AcquiredLife on which\nDepreciation in Latest\nStatement of \nIncome\nis Computed\n\nDescriptionEncumbrancesLandBuildingsLandBuildingsTotal\n\nIndustrial facility in Mesa, AZ— 2,888 4,282 — — 2,888 4,282 7,170 1,873 1991Jan. 2014\n27 yrs.\n\nIndustrial facility in North Amityville, NY— 3,486 11,413 — — 3,486 11,413 14,899 5,230 1981Jan. 2014\n26 yrs.\n\nIndustrial facility in Fort Collins, CO— 821 7,236 — — 821 7,236 8,057 2,626 1993Jan. 2014\n33 yrs.\n\nWarehouse facility in Elk Grove Village, IL— 4,037 7,865 62 — 4,037 7,927 11,964 2,288 1980Jan. 2014\n22 yrs.\n\nResearch and development facility in Washington, MI— 4,085 7,496 43,918 — 4,085 51,414 55,499 3,668 1990Jan. 2014\n33 yrs.\n\nIndustrial facilities in Conroe, Odessa, and Weimar, TX and industrial and office facility in Houston, TX— 4,049 13,021 — 133 4,049 13,154 17,203 8,397 VariousJan. 2014\n12 - 22 yrs.\n\nEducation facility in Sacramento, CA— — 13,715 16 — — 13,731 13,731 4,891 2005Jan. 2014\n34 yrs.\n\nIndustrial facility in Sankt Ingbert, Germany— 2,226 17,460 — (12,988)468 6,230 6,698 3,173 1960Jan. 2014\n34 yrs.\n\nIndustrial facilities in City of Industry, CA; Chelmsford, MA; and Lancaster, TX— 5,138 8,387 — 43 5,138 8,430 13,568 3,625 1969; 1974; 1984Jan. 2014\n27 yrs.\n\nIndustrial facility in Woodland, WA— 707 1,562 — — 707 1,562 2,269 528 2009Jan. 2014\n35 yrs.\n\nWarehouse facilities in Gyál and Herceghalom, Hungary— 14,601 21,915 — (4,996)12,603 18,917 31,520 11,043 2002; 2004Jan. 2014\n21 yrs.\n\nIndustrial facility in Aurora, CO— 574 3,999 — — 574 3,999 4,573 1,214 2012Jan. 2014\n40 yrs.\n\nWarehouse facility in University Park, IL— 7,962 32,756 427 — 7,962 33,183 41,145 11,001 2008May 2014\n40 yrs.\n\nLaboratory facility in Westborough, MA— 3,409 37,914 53,065 — 3,409 90,979 94,388 19,931 1992Aug. 2014\n40 yrs.\n\nResearch and development facility in Andover, MA— 3,980 45,120 323 — 3,980 45,443 49,423 13,416 2013Oct. 2014\n40 yrs.\n\nIndustrial facility in Lewisburg, OH— 1,627 13,721 — — 1,627 13,721 15,348 4,295 2014Nov. 2014\n40 yrs.\n\nIndustrial facility in Opole, Poland— 2,151 21,438 3 (1,297)2,033 20,262 22,295 6,559 2014Dec. 2014\n38 yrs.\n\nRetail facilities in the United Kingdom— 66,319 230,113 277 (107,870)39,758 149,081 188,839 53,877 VariousJan. 2015\n20 - 40 yrs.\n\nWarehouse facility in Rotterdam, Netherlands— — 33,935 21,037 1,976 — 56,948 56,948 13,851 2014Feb. 2015\n40 yrs.\n\nRetail facility in Bad Fischau, Austria— 2,855 18,829 6 1,961 3,113 20,538 23,651 6,017 1998Apr. 2015\n40 yrs.\n\nIndustrial facility in Oskarshamn, Sweden— 3,090 18,262 115 (2,172)2,772 16,523 19,295 4,755 2015Jun. 2015\n40 yrs.\n\nIndustrial facilities in Gersthofen and Senden, Germany and Leopoldsdorf, Austria— 9,449 15,838 902 1,403 9,973 17,619 27,592 4,895 2008; 2010Aug. 2015\n40 yrs\n\nNet-lease hotels in the United States— — 49,190 17,396 — 17,396 49,190 66,586 14,547 1988; 1989; 1990Oct. 2015\n38 - 40 yrs.\n\nRetail facilities in the Netherlands— 5,698 38,130 20,631 (5,861)5,572 53,026 58,598 9,911 VariousNov. 2015\n30 - 40 yrs.\n\nSpecialty facility in Irvine, CA— 7,626 16,137 — — 7,626 16,137 23,763 4,172 1977Dec. 2015\n40 yrs.\n\nEducation facility in Windermere, FL— 5,090 34,721 15,333 — 5,090 50,054 55,144 14,913 1998Apr. 2016\n38 yrs.\n\nIndustrial facilities in the United States— 66,845 87,575 65,400 (56,525)49,672 113,623 163,295 38,602 VariousApr. 2016Various\n\nIndustrial facilities in North Dumfries and Ottawa, Canada— 17,155 10,665 — (18,696)5,659 3,465 9,124 1,873 1967; 1974Apr. 2016\n28 yrs.\n\nW. P. Carey 2025 10-K – 112\n\nSCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)\n\nDecember 31, 2025\n\n(in thousands)\n\nInitial Cost to Company\nCost Capitalized\n\nSubsequent to\n\nAcquisition (a)\n\nIncrease \n\n(Decrease)\n\nin Net\n\nInvestments (b)\n\nGross Amount at which \n\nCarried at Close of Period (c) (d)\n\nAccumulated Depreciation (d)\nDate of ConstructionDate AcquiredLife on which\nDepreciation in Latest\nStatement of \nIncome\nis Computed\n\nDescriptionEncumbrancesLandBuildingsLandBuildingsTotal\n\nEducation facilities in Coconut Creek, FL and Houston, TX— 15,550 83,862 63,830 — 15,550 147,692 163,242 38,531 1979; 1984May 2016\n37 - 40 yrs.\n\nWarehouse facilities in London, KY and Gallatin, TN— 3,585 17,254 — (1,557)3,214 16,068 19,282 4,172 1987; 2000Nov. 2016\n35 - 36 yrs.\n\nIndustrial facilities in Brampton, Toronto, and Vaughan, Canada— 28,759 13,998 — — 28,759 13,998 42,757 4,324 VariousNov. 2016\n28 - 35 yrs.\n\nIndustrial facilities in Queretaro and San Juan del Rio, Mexico— 5,152 12,614 2,440 — 5,152 15,054 20,206 3,354 VariousDec. 2016\n28 - 40 yrs.\n\nIndustrial facility in Chicago, IL— 2,222 2,655 3,511 — 2,222 6,166 8,388 2,707 1985Jun. 2017\n30 yrs.\n\nIndustrial facility in Zawiercie, Poland— 395 102 10,383 80 398 10,562 10,960 2,030 2018Aug. 2017\n40 yrs.\n\nIndustrial facility in Radomsko, Poland— 1,718 59 37,522 3,267 1,733 40,833 42,566 4,918 2018Nov. 2017\n40 yrs.\n\nWarehouse facility in Sellersburg, IN— 1,016 3,838 96 — 1,016 3,934 4,950 1,049 2000Feb. 2018\n36 yrs.\n\nRetail and warehouse facilities in Appleton, Madison, and Waukesha, WI— 5,512 61,230 — — 5,465 61,277 66,742 14,664 1995; 2004Mar. 2018\n36 - 40 yrs.\n\nWarehouse facilities in Denmark— 20,304 185,481 2,037 (3,071)20,162 184,589 204,751 42,998 VariousJun. 2018\n25 - 41 yrs.\n\nRetail facilities in the Netherlands— 38,475 117,127 — 1,431 38,829 118,204 157,033 31,286 VariousJul. 2018\n26 - 30 yrs.\n\nIndustrial facility in Oostburg, WI— 786 6,589 — — 786 6,589 7,375 1,868 2002Jul. 2018\n35 yrs.\n\nWarehouse facility in Kampen, Netherlands— 3,251 12,858 128 231 3,296 13,172 16,468 3,959 1976Jul. 2018\n26 yrs.\n\nWarehouse facility in Azambuja, Portugal— 13,527 35,631 28,054 650 13,730 64,132 77,862 13,919 1994Sep. 2018\n28 yrs.\n\nRetail facilities in Amsterdam, Moordrecht, and Rotterdam, Netherlands— 2,582 18,731 11,338 1,076 2,666 31,061 33,727 7,272 VariousOct. 2018\n27 - 37 yrs.\n\nIndustrial facility in Norfolk, NE— 802 3,686 — — 802 3,686 4,488 896 1975Oct. 2018\n40 yrs.\n\nRetail facilities in Phoenix, AZ and Columbia, MD— 18,286 33,030 — — 18,286 33,030 51,316 6,286 2006Oct. 2018\n40 yrs.\n\nRetail facility in Gorzow, Poland— 1,736 8,298 — 315 1,791 8,558 10,349 1,765 2008Oct. 2018\n40 yrs.\n\nIndustrial facilities in Sergeant Bluff, IA; Bossier City, LA; and Alvarado, TX— 6,460 49,462 — — 6,460 49,462 55,922 10,194 VariousOct. 2018\n40 yrs.\n\nIndustrial facility in Glendale Heights, IL— 4,237 45,484 — — 4,237 45,484 49,721 6,568 1991Oct. 2018\n38 yrs.\n\nIndustrial facilities in Mayodan, Sanford, and Stoneville, NC— 3,505 20,913 — — 3,505 20,913 24,418 4,281 1992; 1997; 1998Oct. 2018\n29 yrs.\n\nWarehouse facility in Dillon, SC— 3,424 43,114 — — 3,424 43,114 46,538 8,885 2001Oct. 2018\n40 yrs.\n\nSpecialty facility in Birmingham, United Kingdom— 7,383 7,687 — 635 7,694 8,011 15,705 1,508 2009Oct. 2018\n40 yrs.\n\nRetail facilities in Spain— 17,626 44,501 — 1,948 18,179 45,896 64,075 8,910 VariousOct. 2018\n40 yrs.\n\nWarehouse facility in Gadki, Poland— 1,376 6,137 2 235 1,419 6,331 7,750 1,241 2011Oct. 2018\n40 yrs.\n\nWarehouse facility in Zagreb, Croatia— 15,789 33,287 15 1,523 16,283 34,331 50,614 9,783 2001Oct. 2018\n26 yrs.\n\nIndustrial facilities in Middleburg Heights and Union Township, OH— 1,295 13,384 426 — 1,295 13,810 15,105 2,535 1990; 1997Oct. 2018\n40 yrs.\n\nRetail facility in Las Vegas, NV— — 79,720 — — — 79,720 79,720 14,313 2012Oct. 2018\n40 yrs.\n\nIndustrial facilities in the United States— 20,517 14,135 — 30,060 22,585 42,127 64,712 6,843 VariousOct. 2018\n40 yrs.\n\nW. P. Carey 2025 10-K – 113\n\nSCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)\n\nDecember 31, 2025\n\n(in thousands)\n\nInitial Cost to Company\nCost Capitalized\n\nSubsequent to\n\nAcquisition (a)\n\nIncrease \n\n(Decrease)\n\nin Net\n\nInvestments (b)\n\nGross Amount at which \n\nCarried at Close of Period (c) (d)\n\nAccumulated Depreciation (d)\nDate of ConstructionDate AcquiredLife on which\nDepreciation in Latest\nStatement of \nIncome\nis Computed\n\n  \n\nDescriptionEncumbrancesLandBuildingsLandBuildingsTotal\n\nWarehouse facility in Bowling Green, KY— 2,652 51,915 72,976 (11)2,652 124,880 127,532 17,670 2011Oct. 2018\n40 yrs.\n\nWarehouse facilities in the United Kingdom— 6,791 2,315 — 383 7,077 2,412 9,489 508 VariousOct. 2018\n40 yrs.\n\nIndustrial facility in Evansville, IN— 180 22,095 — — 180 22,095 22,275 4,062 2009Oct. 2018\n40 yrs.\n\nWarehouse facility in Elorrio, Spain— 7,858 12,728 — 646 8,105 13,127 21,232 2,848 1996Oct. 2018\n40 yrs.\n\nIndustrial and office facilities in Elberton, GA— 879 2,014 — — 879 2,014 2,893 521 1997; 2002Oct. 2018\n40 yrs.\n\nRetail facilities in Dugo Selo, Kutina, Samobor, Spansko, and Zagreb, Croatia— 5,549 12,408 1,777 7,565 7,020 20,279 27,299 5,590 2000; 2002; 2003Oct. 2018\n26 yrs.\n\nOffice and warehouse facilities in the United States— 42,793 193,666 500 — 42,793 194,166 236,959 38,582 VariousOct. 2018\n40 yrs.\n\nWarehouse facilities in Breda, Elst, Gieten, Raalte, and Woerden, Netherlands— 37,755 91,666 4,793 11,414 38,938 106,690 145,628 18,474 VariousOct. 2018\n40 yrs.\n\nWarehouse facilities in Oxnard and Watsonville, CA— 22,453 78,814 — — 22,453 78,814 101,267 14,954 1975; 1994; 2002Oct. 2018\n40 yrs.\n\nRetail facilities in Italy— 75,492 138,280 7,242 3,387 76,486 147,915 224,401 29,953 VariousOct. 2018\n40 yrs.\n\nLand in Hudson, NY— 2,405 — — — 2,405 — 2,405 — N/AOct. 2018N/A\n\nLand in Chicago, IL— 9,887 — — — 9,887 — 9,887 — N/AOct. 2018N/A\n\nIndustrial facility in Fraser, MI— 1,346 9,551 — — 1,346 9,551 10,897 1,865 2012Oct. 2018\n40 yrs.\n\nNet-lease self-storage facilities in the United States— 19,583 108,971 — — 19,583 108,971 128,554 22,143 VariousOct. 2018\n40 yrs.\n\nNet-lease self-storage facility in Fort Worth, TX— 691 6,295 — — 691 6,295 6,986 1,309 2004Oct. 2018\n40 yrs.\n\nRetail facilities in Delnice, Pozega, and Sesvete, Croatia— 5,519 9,930 1,540 388 5,692 11,685 17,377 3,303 2011Oct. 2018\n27 yrs.\n\nRetail facility in Orlando, FL— 6,262 25,134 430 — 6,371 25,455 31,826 4,630 2011Oct. 2018\n40 yrs.\n\nIndustrial facility in Avon, OH— 1,447 5,564 — — 1,447 5,564 7,011 1,139 2001Oct. 2018\n40 yrs.\n\nIndustrial facility in Chimelow, Poland— 6,158 28,032 — 1,071 6,351 28,910 35,261 5,683 2012Oct. 2018\n40 yrs.\n\nNet-lease self-storage facility in Fayetteville, NC— 1,839 4,654 — — 1,839 4,654 6,493 1,233 2001Oct. 2018\n40 yrs.\n\nRetail facilities in the United States— 19,529 42,318 — (7,938)17,297 36,612 53,909 7,305 VariousOct. 2018\n40 yrs.\n\nEducation facilities in Montgomery, AL and Savannah, GA— 5,508 12,032 — — 5,508 12,032 17,540 2,365 1969; 2002Oct. 2018\n40 yrs.\n\nWarehouse facility in Zary, Poland— 2,062 10,034 — 379 2,127 10,348 12,475 2,085 2013Oct. 2018\n40 yrs.\n\nIndustrial facilities in San Antonio, TX and Sterling, VA— 3,198 23,981 78,728 (462)6,767 98,678 105,445 14,731 1980; 2020Oct. 2018; Dec. 2018\n40 yrs.\n\nIndustrial facility in Elk Grove Village, IL— 5,511 10,766 3,004 — 5,511 13,770 19,281 2,294 1961Oct. 2018\n40 yrs.\n\nIndustrial facility in Portage, WI3,332 3,450 7,797 — — 3,450 7,797 11,247 1,689 1970Oct. 2018\n40 yrs.\n\nWarehouse facility in Saitama Prefecture, Japan— 13,507 25,301 6,639 (16,666)9,288 19,493 28,781 3,675 2007Oct. 2018\n40 yrs.\n\nW. P. Carey 2025 10-K – 114\n\nSCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)\n\nDecember 31, 2025\n\n(in thousands)\n\nInitial Cost to Company\nCost Capitalized\n\nSubsequent to\n\nAcquisition (a)\n\nIncrease \n\n(Decrease)\n\nin Net\n\nInvestments (b)\n\nGross Amount at which \n\nCarried at Close of Period (c) (d)\n\nAccumulated Depreciation (d)\nDate of ConstructionDate AcquiredLife on which\nDepreciation in Latest\nStatement of \nIncome\nis Computed\n\n  \n\nDescriptionEncumbrancesLandBuildingsLandBuildingsTotal\n\nRetail facility in Dallas, TX— 2,977 16,168 — — 2,977 16,168 19,145 2,979 1913Oct. 2018\n40 yrs.\n\nRetail facilities in Croatia— 9,000 13,002 1,415 (4,022)8,048 11,347 19,395 2,849 VariousOct. 2018\n29 - 37 yrs.\n\nRetail facility in Northbrook, IL— — 493 447 — — 940 940 450 2007Oct. 2018\n40 yrs.\n\nEducation facility in Chicago, IL— 18,510 163 — (16,859)1,793 21 1,814 16 2015Oct. 2018\n40 yrs.\n\nWarehouse facility in Dillon, SC— 3,516 44,933 — — 3,516 44,933 48,449 9,190 2013Oct. 2018\n40 yrs.\n\nNet-lease self-storage facilities in New York City, NY— 29,223 77,202 714 — 29,223 77,916 107,139 14,113 VariousOct. 2018\n40 yrs.\n\nNet-lease self-storage facility in Hilo, HI— 769 12,869 — — 769 12,869 13,638 2,340 2007Oct. 2018\n40 yrs.\n\nNet-lease self-storage facility in Clearwater, FL— 1,247 5,733 — — 1,247 5,733 6,980 1,187 2001Oct. 2018\n40 yrs.\n\nWarehouse facilities in Gadki, Poland— 10,422 47,727 2,695 1,960 10,748 52,056 62,804 9,856 2007; 2010Oct. 2018\n40 yrs.\n\nNet-lease self-storage facility in Orlando, FL— 1,070 8,686 — — 1,070 8,686 9,756 1,695 2000Oct. 2018\n40 yrs.\n\nRetail facility in Lewisville, TX— 3,485 11,263 — — 3,485 11,263 14,748 2,161 2004Oct. 2018\n40 yrs.\n\nResearch and development facility in Wageningen, Netherlands— 5,227 18,793 112 1,048 5,391 19,789 25,180 3,865 2013Oct. 2018\n40 yrs.\n\nNet-lease self-storage facility in Palm Coast, FL— 1,994 4,982 — — 1,994 4,982 6,976 1,207 2001Oct. 2018\n40 yrs.\n\nNet-lease self-storage facility in Holiday, FL— 1,730 4,213 — — 1,730 4,213 5,943 998 1975Oct. 2018\n40 yrs.\n\nResearch and development facility in Drunen, Netherlands— 2,316 9,370 — 366 2,389 9,663 12,052 1,849 2014Oct. 2018\n40 yrs.\n\nIndustrial facility Bluffton, IN and New Concord, OH— 958 2,309 — 3,449 1,409 5,307 6,716 649 1975; 1999Oct. 2018\n34 - 40 yrs.\n\nRetail facility in Gelsenkirchen, Germany— 2,178 17,097 1,763 604 2,246 19,396 21,642 3,362 2000Oct. 2018\n40 yrs.\n\nWarehouse facilities in Mszczonow and Tomaszow Mazowiecki, Poland— 8,782 53,575 389 1,964 9,057 55,653 64,710 11,420 1995; 2000Oct. 2018\n40 yrs.\n\nWarehouse facility in Sered, Slovakia— 3,428 28,005 3 986 3,536 28,886 32,422 5,562 2004Oct. 2018\n40 yrs.\n\nIndustrial facility in Tuchomerice, Czech Republic— 7,864 27,006 3 1,092 8,110 27,855 35,965 5,293 1998Oct. 2018\n40 yrs.\n\nWarehouse facility in Kaunas, Lithuania34,700 10,199 47,391 — 1,804 10,518 48,876 59,394 9,515 2008Oct. 2018\n40 yrs.\n\nSpecialty facility in Jacksonville, FL11,135 906 17,020 — — 906 17,020 17,926 3,155 2015Oct. 2018\n40 yrs.\n\nWarehouse facilities in Houston, TX— 791 1,990 — — 791 1,990 2,781 403 1972Oct. 2018\n40 yrs.\n\nWarehouse facilities in Shelbyville, IN; Kalamazoo, MI; Tiffin, OH; Andersonville, TN; and Millwood, WV — 2,868 37,571 — — 2,868 37,571 40,439 7,786 VariousOct. 2018\n40 yrs.\n\nWarehouse facility in Perrysburg, OH— 806 11,922 — — 806 11,922 12,728 2,551 1974Oct. 2018\n40 yrs.\n\nWarehouse facility in Dillon, SC— 620 46,319 434 — 620 46,753 47,373 7,929 2019Oct. 2018\n40 yrs.\n\nWarehouse facility in Zabia Wola, Poland— 4,742 23,270 5,636 1,086 4,890 29,844 34,734 5,670 1999Oct. 2018\n40 yrs.\n\nLaboratory facility in Buffalo Grove, IL— 2,224 6,583 — — 2,224 6,583 8,807 1,288 1992Oct. 2018\n40 yrs.\n\nW. P. Carey 2025 10-K – 115\n\nSCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)\n\nDecember 31, 2025\n\n(in thousands)\n\nInitial Cost to Company\nCost Capitalized\n\nSubsequent to\n\nAcquisition (a)\n\nIncrease \n\n(Decrease)\n\nin Net\n\nInvestments (b)\n\nGross Amount at which \n\nCarried at Close of Period (c) (d)\n\nAccumulated Depreciation (d)\nDate of ConstructionDate AcquiredLife on which\nDepreciation in Latest\nStatement of \nIncome\nis Computed\n\n  \n\nDescriptionEncumbrancesLandBuildingsLandBuildingsTotal\n\nNet-lease self-storage facilities in the United States— 12,755 48,965 — — 12,755 48,965 61,720 1,632 VariousOct. 2018\n40 yrs.\n\nNet-lease self-storage facilities in Raleigh, NC and Mount Pleasant, SC— 3,473 19,202 — — 3,473 19,202 22,675 640 2017Nov. 2018\n40 yrs.\n\nWarehouse facilities in McHenry, IL— 5,794 21,141 — — 5,794 21,141 26,935 6,018 1990; 1999Dec. 2018\n27 - 28 yrs.\n\nIndustrial facilities in Chicago, Cortland, Forest View, Morton Grove, and Northbrook, IL and Madison and Monona, WI— 23,267 9,166 — — 23,267 9,166 32,433 2,468 VariousDec. 2018; Dec. 2019\n35 - 40 yrs.\n\nWarehouse facility in Kilgore, TX— 3,002 36,334 14,096 (6)3,002 50,424 53,426 9,747 2007Dec. 2018\n37 yrs.\n\nIndustrial facility in San Luis Potosi, Mexico— 2,787 12,945 — — 2,787 12,945 15,732 2,663 2009Dec. 2018\n39 yrs.\n\nIndustrial facility in Legnica, Poland— 995 9,787 6,007 508 1,024 16,273 17,297 3,739 2002Dec. 2018\n29 yrs.\n\nIndustrial facility in Meru, France— 4,231 14,731 8 623 4,370 15,223 19,593 4,030 1997Dec. 2018\n29 yrs.\n\nEducation facility in Portland, OR— 2,396 23,258 4,177 — 2,396 27,435 29,831 6,117 2006Feb. 2019\n40 yrs.\n\nWarehouse facility in Inwood, WV— 3,265 36,692 — — 3,265 36,692 39,957 6,857 2000Mar. 2019\n40 yrs.\n\nIndustrial facility in Hurricane, UT— 1,914 37,279 — — 1,914 37,279 39,193 6,591 2011Mar. 2019\n40 yrs.\n\nIndustrial facility in Bensenville, IL— 8,640 4,948 — 300 8,940 4,948 13,888 1,406 1981Mar. 2019\n40 yrs.\n\nIndustrial facility in Katowice, Poland— — 764 15,165 1,085 — 17,014 17,014 2,593 2019Apr. 2019\n40 yrs.\n\nIndustrial facilities in Westerville, OH and North Wales, PA— 1,545 6,508 — — 1,545 6,508 8,053 1,415 1960; 1997May 2019\n40 yrs.\n\nIndustrial facilities in Fargo, ND; Norristown, PA; and Atlanta, TX— 1,616 5,589 — — 1,616 5,589 7,205 1,302 VariousMay 2019\n40 yrs.\n\nIndustrial facilities in Chihuahua and Juarez, Mexico— 3,426 7,286 — — 3,426 7,286 10,712 1,691 1983; 1986; 1991May 2019\n40 yrs.\n\nWarehouse facility in Statesville, NC— 1,683 13,827 — — 1,683 13,827 15,510 2,740 1979Jun. 2019\n40 yrs.\n\nIndustrial facilities in Searcy, AR and Conestoga, PA— 4,290 51,410 21,027 — 4,678 72,049 76,727 13,856 1950; 1951Jun. 2019; Apr. 2021\n40 yrs.\n\nIndustrial facilities in Hartford and Milwaukee, WI— 1,471 21,293 — — 1,471 21,293 22,764 4,009 1964; 1992; 1993Jul. 2019\n40 yrs.\n\nIndustrial facilities in Brockville and Prescott, Canada— 2,025 9,519 — — 2,025 9,519 11,544 1,851 1955; 1995Jul. 2019\n40 yrs.\n\nIndustrial facility in Dordrecht, Netherlands— 3,233 10,954 2 974 3,459 11,704 15,163 1,880 1986Sep. 2019\n40 yrs.\n\nIndustrial facilities in York, PA and Lexington, SC— 4,155 22,930 19 — 4,155 22,949 27,104 4,678 1968; 1971Oct. 2019\n40 yrs.\n\nIndustrial facility in Queretaro, Mexico— 2,851 12,748 — (3)2,851 12,745 15,596 2,393 1999Oct. 2019\n40 yrs.\n\nIndustrial facilities in Houston, TX and Metairie, LA and office facilities in Houston, TX and Mason, OH— 6,130 24,981 2,145 — 6,130 27,126 33,256 4,830 VariousNov. 2019\n40 yrs.\n\nIndustrial facility in Pardubice, Czech Republic— 1,694 8,793 437 696 1,806 9,814 11,620 1,608 1970Nov. 2019\n40 yrs.\n\nWarehouse facilities in Brabrand, Denmark and Arlandastad, Sweden— 6,499 27,899 151 1,969 6,845 29,673 36,518 5,042 2012; 2017Nov. 2019\n40 yrs.\n\nW. P. Carey 2025 10-K – 116\n\nSCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)\n\nDecember 31, 2025\n\n(in thousands)\n\nInitial Cost to Company\nCost Capitalized\n\nSubsequent to\n\nAcquisition (a)\n\nIncrease \n\n(Decrease)\n\nin Net\n\nInvestments (b)\n\nGross Amount at which \n\nCarried at Close of Period (c) (d)\n\nAccumulated Depreciation (d)\nDate of ConstructionDate AcquiredLife on which\nDepreciation in Latest\nStatement of \nIncome\nis Computed\n\n  \n\nDescriptionEncumbrancesLandBuildingsLandBuildingsTotal\n\nRetail facility in Hamburg, PA— 4,520 34,167 — — 4,520 34,167 38,687 5,918 2003Dec. 2019\n40 yrs.\n\nWarehouse facility in Charlotte, NC— 6,481 82,936 — — 6,481 82,936 89,417 13,843 1995Dec. 2019\n40 yrs.\n\nWarehouse facility in Buffalo Grove, IL— 3,287 10,167 1,479 20 3,287 11,666 14,953 1,839 1987Dec. 2019\n40 yrs.\n\nIndustrial facility in Hvidovre, Denmark— 1,931 4,243 — 335 2,045 4,464 6,509 954 2007Dec. 2019\n40 yrs.\n\nWarehouse facility in Huddersfield, United Kingdom— 8,659 29,752 — 761 8,831 30,341 39,172 4,825 2005Dec. 2019\n40 yrs.\n\nWarehouse facility in Newark, United Kingdom— 21,869 74,777 — 2,423 22,417 76,652 99,069 11,472 2006Jan. 2020\n40 yrs.\n\nIndustrial facility in Langen, Germany— 14,160 7,694 32,173 (1,118)13,727 39,182 52,909 4,806 2021Jan. 2020\n40 yrs.\n\nIndustrial facility in Aurora, OR— 2,914 21,459 — (5,000)2,914 16,459 19,373 2,443 1976Jan. 2020\n40 yrs.\n\nWarehouse facility in Vojens, Denmark— 1,031 8,784 — 625 1,096 9,344 10,440 1,382 2020Jan. 2020\n40 yrs.\n\nWarehouse facility in Knoxville, TN— 2,455 47,446 — — 2,455 47,446 49,901 6,547 2020Jun. 2020\n40 yrs.\n\nIndustrial facilities in Bluffton and Plymouth, IN; and Lawrence, KS— 674 33,519 21,216 — 1,738 53,671 55,409 6,466 1981; 2014; 2021Sep 2020; Dec. 2021\n40 yrs.\n\nIndustrial facility in Huntley, IL— 5,260 26,617 — — 5,260 26,617 31,877 3,496 1996Sep. 2020\n40 yrs.\n\nIndustrial facilities in Winter Haven, FL; Belvedere, IL; and Fayetteville, NC— 8,232 31,745 — — 8,232 31,745 39,977 4,144 1954; 1984; 1997Oct. 2020\n40 yrs.\n\nWarehouse facility in Little Canada, MN— 3,384 23,422 — — 3,384 23,422 26,806 3,028 1987Oct. 2020\n40 yrs.\n\nWarehouse facility in Hurricane, UT— 5,154 22,893 20,517 — 5,154 43,410 48,564 4,858 2005Dec. 2020\n40 yrs.\n\nIndustrial facilities in Bethlehem, PA and Waco, TX— 4,673 19,111 — — 4,673 19,111 23,784 2,418 VariousDec. 2020\n40 yrs.\n\nIndustrial facilities in Pleasanton, KS; Savage, MN; Grove City, OH; and Mahanoy City, PA— 7,717 21,569 — — 7,717 21,569 29,286 2,696 VariousDec. 2020\n40 yrs.\n\nSpecialty facilities in Fort Washington, Huntington Valley, and West Chester, PA— — 492 — — — 492 492 61 2011; 2014; 2016Jan. 2021\n40 yrs.\n\nWarehouse facilities in Grove City, OH and Anderson, SC— 1,415 15,151 — — 1,415 15,151 16,566 1,861 1995; 2001Feb. 2021\n40 yrs.\n\nOffice and retail facilities in NJ and PA— 17,537 25,987 — — 17,537 25,987 43,524 3,175 VariousFeb. 2021\n40 yrs.\n\nResearch and development facility in Wageningen, Netherlands— 1,429 5,777 18,852 4,014 1,646 28,426 30,072 2,479 2022Mar. 2021\n40 yrs.\n\nRetail facilities in France— 15,954 104,578 — (20,958)14,938 84,636 99,574 12,432 1968; 1981; 1983Apr. 2021\n40 yrs.\n\nWarehouse facility in Detroit, MI— 3,625 47,743 — — 3,625 47,743 51,368 5,589 1991Apr. 2021\n40 yrs.\n\nWarehouse facility in Solihull, United Kingdom— 42,137 123,315 — (4,638)40,956 119,858 160,814 13,972 2021May 2021\n40 yrs.\n\nSpecialty facility in New Rochelle, NY— 3,617 21,590 — — 3,617 21,590 25,207 2,515 2018May 2021\n40 yrs.\n\nIndustrial facility in Groveport, OH— — 26,639 2,904 — — 29,543 29,543 3,386 1982May 2021\n40 yrs.\n\nIndustrial facility in Dakota, IL— 1,970 50,369 — — 1,970 50,369 52,339 5,844 1978May 2021\n40 yrs.\n\nIndustrial facility in San Jose, CA— 12,808 31,714 — — 12,808 31,714 44,522 3,677 1984May 2021\n40 yrs.\n\nW. P. Carey 2025 10-K – 117\n\nSCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)\n\nDecember 31, 2025\n\n(in thousands)\n\nInitial Cost to Company\nCost Capitalized\n\nSubsequent to\n\nAcquisition (a)\n\nIncrease \n\n(Decrease)\n\nin Net\n\nInvestments (b)\n\nGross Amount at which \n\nCarried at Close of Period (c) (d)\n\nAccumulated Depreciation (d)\nDate of ConstructionDate AcquiredLife on which\nDepreciation in Latest\nStatement of \nIncome\nis Computed\n\n  \n\nDescriptionEncumbrancesLandBuildingsLandBuildingsTotal\n\nWarehouse facility in Opelika, AL— 2,115 39,980 — — 2,115 39,980 42,095 4,568 2005Jun. 2021\n40 yrs.\n\nWarehouse facilities in Elk Grove Village and Niles, IL; and Guelph, Canada— 12,932 25,096 209 — 12,932 25,305 38,237 2,869 1962; 1976; 1983Jun. 2021\n40 yrs.\n\nWarehouse facility in Rome, NY— 1,480 47,781 — — 1,480 47,781 49,261 5,449 2021Jun. 2021\n40 yrs.\n\nWarehouse facility in Frankfort, IN— 5,423 95,915 — — 5,423 95,915 101,338 10,432 2015Aug. 2021\n40 yrs.\n\nWarehouse facility in Rogers, MN— 1,871 20,959 — — 1,871 20,959 22,830 2,260 2005Sep. 2021\n40 yrs.\n\nIndustrial facilities in Chattanooga, TN— 4,859 29,302 1,453 — 4,859 30,755 35,614 3,138 2006; 2017Oct. 2021\n40 yrs.\n\nRetail facilities in Denmark— 2,695 38,428 — 1,618 2,801 39,940 42,741 4,062 VariousDec. 2021\n40 yrs.\n\nRetail facilities in Poland— 15,110 47,511 — 2,708 15,759 49,570 65,329 5,015 VariousDec. 2021\n40 yrs.\n\nIndustrial facility in Cary, IL— 4,568 31,977 — — 4,568 31,977 36,545 3,206 1975Dec. 2021\n40 yrs.\n\nRetail facilities in the Netherlands— 9,342 32,770 — 1,666 9,712 34,066 43,778 3,414 VariousDec. 2021\n40 yrs.\n\nSpecialty facilities in Flemington and Pennsauken, NJ— 1,025 397 832 — 1,025 1,229 2,254 111 VariousDec. 2021\n40 yrs.\n\nIndustrial facility in Pleasant Prairie, WI— 1,443 16,532 — — 1,443 16,532 17,975 1,643 2001Jan. 2022\n40 yrs.\n\nRetail facilities in Denmark— 3,295 35,898 — 2,175 3,459 37,909 41,368 3,528 VariousVarious\n40 yrs.\n\nIndustrial facilities in Laval, Canada— 5,506 16,678 — (1,468)5,202 15,514 20,716 1,467 1966; 1973Feb. 2022; Mar. 2024\n40 yrs.\n\nWarehouse facility in Chattanooga, TN— 5,063 36,645 26,103 102 5,063 62,850 67,913 5,315 2003Mar. 2022\n40 yrs.\n\nIndustrial facility in Coatzacoalcos, Mexico— 9,805 17,622 — — 9,805 17,622 27,427 1,622 1960Apr. 2022\n40 yrs.\n\nIndustrial facility in Lowbanks, CA— 3,574 1,605 — — 3,574 1,605 5,179 148 1967Apr. 2022\n40 yrs.\n\nIndustrial facilities in Chicago, IL; Geismar, LA; and Nashville, TN— 9,300 26,945 — — 9,300 26,945 36,245 2,458 VariousMay 2022\n40 yrs.\n\nIndustrial and warehouse facilities in the United States— 9,847 88,227 — — 9,847 88,227 98,074 8,007 VariousMay 2022\n40 yrs.\n\nRetail facilities in Denmark— 2,228 31,774 — 3,569 2,464 35,107 37,571 3,119 VariousVarious\n40 yrs.\n\nIndustrial facility in Medina, OH— 2,029 22,938 — — 2,029 22,938 24,967 2,031 1963Jun. 2022\n40 yrs.\n\nWarehouse facility in Bree, Belgium— — 73,302 43 9,628 — 82,973 82,973 7,274 1964Jun. 2022\n40 yrs.\n\nIndustrial and warehouse facilities in the United States— 27,543 192,197 — — 27,543 192,197 219,740 16,508 VariousJul. 2022\n40 yrs.\n\nRetail facilities in Denmark— 2,690 33,703 — 4,964 3,059 38,298 41,357 3,198 VariousVarious\n40 yrs.\n\nOffice facility in Austin, TX— 31,095 45,393 — — 31,095 45,393 76,488 3,880 1993Aug. 2022\n40 yrs.\n\nLand in Chicago, IL— 3,873 — — — 3,873 — 3,873 — N/AAug. 2022N/A\n\nRetail facilities in Croatia— 1,367 23,337 — 3,663 1,570 26,797 28,367 2,291 2001; 2006Aug. 2022\n40 yrs.\n\nWarehouse facility in Streetsboro, OH— 2,435 9,333 — — 2,435 9,333 11,768 798 1993Aug. 2022\n40 yrs.\n\nNet-lease self-storage facility in Kissimmee, FL— 923 17,205 11 4 923 17,220 18,143 1,478 2005Aug. 2022\n40 yrs.\n\nWarehouse facility in University Park, IL— 15,377 63,299 20,430 — 15,377 83,729 99,106 5,411 2003Aug. 2022\n40 yrs.\n\nW. P. Carey 2025 10-K – 118\n\nSCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)\n\nDecember 31, 2025\n\n(in thousands)\n\nInitial Cost to Company\nCost Capitalized\n\nSubsequent to\n\nAcquisition (a)\n\nIncrease \n\n(Decrease)\n\nin Net\n\nInvestments (b)\n\nGross Amount at which \n\nCarried at Close of Period (c) (d)\n\nAccumulated Depreciation (d)\nDate of ConstructionDate AcquiredLife on which\nDepreciation in Latest\nStatement of \nIncome\nis Computed\n\n  \n\nDescriptionEncumbrancesLandBuildingsLandBuildingsTotal\n\nIndustrial facilities in Surprise, AZ; Temple, GA; and Houston, TX— 2,994 26,100 22,042 — 7,793 43,343 51,136 2,342 1998; 2007; 2011Aug. 2022\n40 yrs.\n\nWarehouse facility in Albany, GA— 3,108 12,220 194 — 3,108 12,414 15,522 1,045 1977Aug. 2022\n40 yrs.\n\nIndustrial facilities in Dallas/Fort Worth, TX— 3,918 9,817 405 — 3,918 10,222 14,140 842 1990; 2008Aug. 2022\n40 yrs.\n\nWarehouse facility in Byron Center, MI— 1,925 10,098 — (5,403)998 5,622 6,620 833 2015Aug. 2022\n40 yrs.\n\nNet-lease hotel in Albion, Mauritius1,624 7,633 29,274 — 5,472 8,765 33,614 42,379 2,873 2007Aug. 2022\n40 yrs.\n\nNet-lease self-storage facility in Sebastian, FL— 529 8,027 — — 529 8,027 8,556 695 1986Aug. 2022\n40 yrs.\n\nNet-lease self-storage facility in Naples, FL— 6,826 20,655 — — 6,826 20,655 27,481 1,879 1974Aug. 2022\n40 yrs.\n\nNet-lease self-storage facilities in Hesperia and Thousand Palms, CA— 3,105 27,124 — 4 3,105 27,128 30,233 2,331 2007Aug. 2022\n40 yrs.\n\nNet-lease self-storage facility in Stockbridge, GA— 308 7,286 — — 308 7,286 7,594 635 2003Aug. 2022\n40 yrs.\n\nIndustrial facility in Plymouth, MN— 3,693 13,242 914 — 3,693 14,156 17,849 1,213 1975Aug. 2022\n40 yrs.\n\nNet-lease hotel in Hamburg, Germany— 7,328 17,467 272 3,677 8,415 20,329 28,744 1,714 2017Aug. 2022\n40 yrs.\n\nNet-lease self-storage facility in Sarasota, FL— 638 10,312 — — 638 10,312 10,950 890 2001Aug. 2022\n40 yrs.\n\nIndustrial facility in Michalovce, Slovakia— 4,538 19,009 — 3,491 5,211 21,827 27,038 1,866 2006Aug. 2022\n40 yrs.\n\nNet-lease hotel in Stuttgart, Germany— — 31,276 — 4,637 — 35,913 35,913 3,070 1965Aug. 2022\n40 yrs.\n\nIndustrial facility in Menomonee Falls, WI11,290 2,726 17,453 — — 2,726 17,453 20,179 1,492 1974Aug. 2022\n40 yrs.\n\nWarehouse facility in Iowa Falls, IA— 997 8,819 — — 997 8,819 9,816 754 2001Aug. 2022\n40 yrs.\n\nIndustrial facility in Hebron, Ohio and warehouse facility in Strongsville, OH— 4,671 5,494 — — 4,671 5,494 10,165 466 1969; 1999Aug. 2022\n40 yrs.\n\nWarehouse facility in Scarborough, Canada— 5,092 1,868 — — 5,092 1,868 6,960 158 1980Aug. 2022\n40 yrs\n\nSpecialty facilities in West Des Moines, IA and Clifton Park, NY— 3,229 17,080 — — 3,229 17,080 20,309 1,447 1971; 2021Aug. 2022\n40 yrs.\n\nIndustrial facility in Orzinuovi, Italy— 2,473 9,892 — 2,154 2,904 11,615 14,519 973 1978Aug. 2022\n40 yrs.\n\nSpecialty facilities in West Chester, PA— — 559 — — — 559 559 52 2022Oct. 2022\n40 yrs.\n\nIndustrial facilities in the United States— 11,117 41,107 — — 11,117 41,107 52,224 3,114 VariousDec. 2022\n40 yrs.\n\nWarehouse facility in Romulus, MI— 2,788 33,353 — — 2,788 33,353 36,141 2,506 2017Dec. 2022\n40 yrs.\n\nIndustrial facility in Salisbury, NC— 1,308 13,082 14,147 — 1,308 27,229 28,537 1,625 2015Dec. 2022\n40 yrs.\n\nIndustrial facilities in the United States— 11,503 42,967 — — 11,503 42,967 54,470 3,190 VariousJan. 2023\n40 yrs.\n\nIndustrial facilities in Italy and Spain— 21,167 56,172 4 6,193 22,862 60,674 83,536 4,214 VariousMar. 2023\n40 yrs.\n\nIndustrial and warehouse facilities in Canada— 71,228 330,400 — — 71,228 330,400 401,628 22,743 VariousApr. 2023\n40 yrs.\n\nIndustrial facilities in Canada, Mexico, and the United States— 11,873 55,997 4,831 (7,389)11,139 54,173 65,312 3,402 VariousApr. 2023\n40 yrs.\n\nW. P. Carey 2025 10-K – 119\n\nSCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)\n\nDecember 31, 2025\n\n(in thousands)\n\nInitial Cost to Company\nCost Capitalized\n\nSubsequent to\n\nAcquisition (a)\n\nIncrease \n\n(Decrease)\n\nin Net\n\nInvestments (b)\n\nGross Amount at which \n\nCarried at Close of Period (c) (d)\n\nAccumulated Depreciation (d)\nDate of ConstructionDate AcquiredLife on which\nDepreciation in Latest\nStatement of \nIncome\nis Computed\n\n  \n\nDescriptionEncumbrancesLandBuildingsLandBuildingsTotal\n\nRetail (car wash) facilities in the United States— 9,511 32,777 — — 9,511 32,777 42,288 2,106 VariousMay 2023; Oct. 2023\n40 yrs.\n\nEducation and specialty facilities in the United States— 11,973 90,101 — — 11,973 90,101 102,074 5,739 VariousJun. 2023\n40 yrs.\n\nRetail (car wash) facilities in the United States— 12,240 36,914 — — 12,240 36,914 49,154 1,626 2023Nov. 2023; Oct. 2024\n40 yrs.\n\nIndustrial and warehouse facilities in Italy, Germany, and Spain— 80,767 191,007 4 21,222 87,407 205,593 293,000 10,315 VariousNov. 2023; Jan. 2024\n40 yrs.\n\nWarehouse facility in Houston, TX— 18,999 27,199 — — 18,999 27,199 46,198 1,410 2000Dec. 2023\n40 yrs.\n\nIndustrial and research and development facilities in San Diego, CA— 5,739 6,397 1,536 — 5,739 7,933 13,672 534 1990Dec. 2023\n40 yrs.\n\nRetail facility in Phoenix, AZ— 1,729 9,201 — — 1,729 9,201 10,930 466 2023Dec. 2023\n40 yrs.\n\nRetail facilities in Doncaster, United Kingdom— 6,133 17,512 — 1,366 6,488 18,523 25,011 916 2010; 2013Jan. 2024\n40 yrs.\n\nWarehouse facility in Commercial Point, OH— 11,363 76,376 — — 11,363 76,376 87,739 3,323 2022Apr. 2024\n40 yrs.\n\nWarehouse facility in Tucson, AZ— 3,742 30,914 920 — 3,742 31,834 35,576 1,281 2024May 2024\n40 yrs.\n\nIndustrial and warehouse facilities in the United States— 11,209 50,311 — — 11,209 50,311 61,520 2,052 VariousMay 2024\n40 yrs.\n\nLaveen and Mesa, AZ— 4,407 16,938 1,190 — 4,407 18,128 22,535 710 2024Jun. 2024\n40 yrs.\n\nIndustrial facilities in La Porte, IN and Moxee, WA20,537 3,657 25,004 — — 3,657 25,004 28,661 948 1963; 1990Jun. 2024\n40 yrs.\n\nIndustrial and retail facilities in NC10,778 2,102 12,021 — — 2,102 12,021 14,123 434 1959; 1995; 2005Jul. 2024\n40 yrs.\n\nIndustrial facility in Neenah, WI10,086 1,734 13,774 — — 1,734 13,774 15,508 497 1979Jul. 2024\n40 yrs.\n\nRetail facilities in Poland— 5,585 21,834 — 2,224 6,040 23,603 29,643 842 VariousJul. 2024; Sep. 2024\n40 yrs.\n\nRetail facility in Las Vegas, NV— 1,103 8,817 — — 1,103 8,817 9,920 312 2024Aug. 2024\n40 yrs.\n\nWarehouse facility in Alexandria, Canada13,149 2,180 18,894 — 199 2,201 19,072 21,273 670 1980Aug. 2024\n40 yrs.\n\nIndustrial facilities in Oldcastle and Tillsonburg, Canada7,234 1,133 11,269 — — 1,133 11,269 12,402 396 1990; 1999Aug. 2024\n40 yrs.\n\nRetail facility in West Des Moines, IA— — 14,457 — — — 14,457 14,457 505 2024Aug. 2024\n40 yrs.\n\nIndustrial facility in Lebanon, IN— 4,995 40,345 118 — 4,995 40,463 45,458 1,221 2003Oct. 2024\n40 yrs.\n\nIndustrial facility in Shelbyville, KY— 5,704 86,354 — — 5,704 86,354 92,058 2,601 2024Oct. 2024\n40 yrs.\n\nLand in Stockton, CA— 40,217 7,003 — — 40,217 7,003 47,220 511 2023Nov. 2024\n15 yrs.\n\nSpecialty facility in Weehawken, NJ— 25,016 61,404 — — 25,016 61,404 86,420 1,682 1990Nov. 2024\n40 yrs.\n\nRetail facilities in the United States— 20,020 64,990 — — 20,020 64,990 85,010 1,685 VariousVarious\n40 yrs.\n\nRetail facilities in the United States— 6,705 21,003 — — 6,705 21,003 27,708 554 2023; 2024Dec. 2024\n40 yrs.\n\nW. P. Carey 2025 10-K – 120\n\nSCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)\n\nDecember 31, 2025\n\n(in thousands)\n\nInitial Cost to Company\nCost Capitalized\n\nSubsequent to\n\nAcquisition (a)\n\nIncrease \n\n(Decrease)\n\nin Net\n\nInvestments (b)\n\nGross Amount at which \n\nCarried at Close of Period (c) (d)\n\nAccumulated Depreciation (d)\nDate of ConstructionDate AcquiredLife on which\nDepreciation in Latest\nStatement of \nIncome\nis Computed\n\n  \n\nDescriptionEncumbrancesLandBuildingsLandBuildingsTotal\n\nRetail facility in Manchester, United Kingdom— — 17,244 — 1,089 — 18,333 18,333 482 2012Dec. 2024\n40 yrs.\n\nEducation facility in Yarnfield, United Kingdom— 5,929 14,848 — 1,199 6,332 15,644 21,976 405 1960Dec. 2024\n40 yrs.\n\nRetail facilities in the United States— 9,303 29,973 — — 9,303 29,973 39,276 768 2023; 2024Dec. 2024\n40 yrs.\n\nRetail facilities in the United States— 3,572 12,111 — — 3,572 12,111 15,683 307 VariousDec. 2024\n40 yrs.\n\nIndustrial and warehouse facilities in the United States— 43,240 93,006 — — 43,240 93,006 136,246 1,968 VariousFeb. 2025\n40 yrs.\n\nSpecialty facility in Mishawaka, IN— 1,176 24,108 — — 1,176 24,108 25,284 464 2020Mar. 2025\n40 yrs.\n\nIndustrial facilities in Germany and Spain— 11,528 25,286 — 1,310 11,938 26,186 38,124 475 VariousApr. 2025\n40 yrs.\n\nWarehouse in Santa Fe Springs, CA— 57,869 54,677 — — 57,869 54,677 112,546 947 1970Apr. 2025\n40 yrs.\n\nIndustrial properties in Italy and Spain— 15,294 48,667 — 3,672 16,172 51,461 67,633 821 VariousMay 2025\n40 yrs.\n\nIndustrial facility in Chattanooga, TN— 3,162 13,158 — — 3,162 13,158 16,320 179 1991Jun. 2025\n40 yrs.\n\nIndustrial facilities in Boston, MA and Newark, NJ— 71,781 11,357 — — 71,781 11,357 83,138 154 1970; 1985Jun. 2025\n40 yrs.\n\nIndustrial facility in San Francisco, CA— 35,353 5,942 — — 35,353 5,942 41,295 71 1954Jul. 2025\n40 yrs.\n\nRetail facilities in the United States— 6,027 19,582 — — 6,027 19,582 25,609 131 VariousVarious\n40 yrs.\n\nRetail facilities in Loughborough and Ilkeston, United Kingdom— 13,777 31,090 — 224 13,846 31,245 45,091 362 1980; 2015Jul. 2025\n40 yrs.\n\nIndustrial facility in Houston, TX— 2,325 17,071 — — 2,325 17,071 19,396 180 2008Jul. 2025\n40 yrs.\n\nIndustrial facilities in France and Spain— 13,507 35,420 — 1,299 13,865 36,361 50,226 384 VariousJul. 2025\n40 yrs.\n\nIndustrial and warehouse facilities in Italy— 15,871 57,573 — 905 16,066 58,283 74,349 578 VariousAug. 2025; Dec. 2025\n40 yrs.\n\nIndustrial facilities in Mexico— 15,183 29,674 — — 15,183 29,674 44,857 246 VariousAug. 2025; Oct. 2025\n40 yrs.\n\nIndustrial facility in Mesquite, TX— 5,325 76,867 — — 5,325 76,867 82,192 553 2025Sep. 2025\n40 yrs.\n\nRetail facility in Kissimmee, FL— 2,252 9,525 — — 2,252 9,525 11,777 65 2025Sep. 2025\n40 yrs.\n\nIndustrial facilities in Markham and Toronto, Canada; and Lee's Summit, MO— 12,133 43,923 — 596 12,253 44,399 56,652 305 1979; 1980; 1990Sep. 2025\n40 yrs.\n\nWarehouse facility in Compton, CA— 1,660 3,641 — — 1,660 3,641 5,301 23 1969Oct. 2025\n40 yrs.\n\nSpecialty facilities in the United States— 12,385 95,298 — — 12,385 95,298 107,683 594 2021; 2022Oct. 2025\n40 yrs.\n\nIndustrial facility in Wasserburg amm Inn, Germany— 5,814 15,492 — (47)5,801 15,458 21,259 17 1964Dec. 2025\n40 yrs.\n\nRetail facilities in the United States— 49,832 228,020 — — 49,832 228,020 277,852 219 VariousDec. 2025\n40 yrs.\n\nWarehouse facilities in Navarra and Zaragoza, Spain— 22,170 46,818 — 29 22,179 46,838 69,017 — VariousDec. 2025\n40 yrs.\n\nSolar projects in the United States— — — 11,017 — — 11,017 11,017 — \n\n$138,526 $2,994,071 $10,731,745 $1,220,756 $(575,181)$2,839,757 $11,531,634 $14,371,391 $2,026,829 \n\nW. P. Carey 2025 10-K – 121\n\nSCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)\n\nDecember 31, 2025\n\n(in thousands)\n\nInitial Cost to Company\nCost Capitalized\n\nSubsequent to\n\nAcquisition (a)\n\nIncrease \n\n(Decrease)\n\nin Net\n\nInvestments (b)\nGross Amount at\nwhich Carried at\nClose of Period\nTotal Date of ConstructionDate Acquired\n\nDescriptionEncumbrancesLandBuildings\n\nDirect Financing Method\n\nIndustrial facilities in Irving and Houston, TX$— $— $27,599 $— $(4,467)$23,132 1978Jan. 1998\n\nWarehouse facility in Brierley Hill, United Kingdom— 2,147 12,357 — (1,405)13,099 1996Sep. 2012\n\nRetail facilities in El Paso and Fabens, TX— 4,777 17,823 — (165)22,435 VariousJan. 2014\n\nIndustrial facility in Mount Carmel, IL— 135 3,265 — (504)2,896 1896Jan. 2014\n\nIndustrial facility in Göppingen, Germany— 10,717 60,120 — (17,839)52,998 1930Jan. 2014\n\nWarehouse facilities in Bristol, Leeds, Liverpool, Luton, Newport, Plymouth, and Southampton, United Kingdom — 1,062 23,087 — 791 24,940 VariousOct. 2018\n\nWarehouse facility in Oxnard, CA — — 10,960 — (3,145)7,815 1975Oct. 2018\n\nIndustrial facilities in Bartow, FL; Momence, IL; Smithfield, NC; Hudson, NY; and Ardmore, OK — 4,454 87,030 — 2,787 94,271 VariousOct. 2018\n\nIndustrial facility in Countryside, IL — 563 1,457 — 18 2,038 1981Oct. 2018\n\nIndustrial facility in Clarksville, TN 2,120 1,680 10,180 — (541)11,319 1998Oct. 2018\n\nWarehouse facility in Houston, TX — — 5,977 — (250)5,727 1972Oct. 2018\n\nWarehouse in Chicago, IL— — 10,517 — 88 10,605 1942Aug. 2022\n\nLess: allowance for credit losses(3,745)(3,745)\n\n$2,120 $25,535 $270,372 $— $(28,377)$267,530 \n\nW. P. Carey 2025 10-K – 122\n\nSCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)\n\nDecember 31, 2025\n\n(in thousands)\n\nInitial Cost to Company\nCost \n\nCapitalized\n\nSubsequent to\nAcquisition (a)\n\nIncrease \n\n(Decrease)\n\nin Net\nInvestments (b)\n\nGross Amount at which Carried \n\n at Close of Period (c) (d)\nLife on which\nDepreciation\nin Latest\nStatement of\nIncome is\nComputed\n\nDescriptionEncumbrancesLandBuildingsPersonal PropertyLandBuildingsPersonal PropertyTotal\nAccumulated Depreciation (d)\nDate of ConstructionDate Acquired\n\nOperating Real Estate – Hotels\n\nBloomington, MN$— $3,810 $29,126 $3,622 $7,500 $(314)$3,874 $31,675 $8,195 $43,744 $18,268 2008Jan. 2014\n34 yrs.\n\nNewark, NJ— 4,912 5,581 — 128 — 4,912 5,581 128 10,621 2,054 1989Sep. 2012\n37 yrs.\n\nSan Diego, CA— 3,898 33,729 — 339 — 3,898 33,729 339 37,966 12,255 1989Sep. 2012\n37 yrs.\n\nIrvine, CA— 3,720 24,983 — 523 — 3,720 24,983 523 29,226 9,687 1989Sep. 2012\n35 yrs.\n\nOperating Real Estate – Student Housing Facilities\n\nSwansea, United Kingdom— — 32,884 — 60,474 14,563 — 107,921 — 107,921 8,449 2022Aug. 2022\n40 yrs.\n\nOperating Real Estate – Self-Storage Facilities\n\nLoves Park, IL — 1,412 4,853 — 159 — 1,412 4,973 39 6,424 1,358 1997Oct. 2018\n40 yrs.\n\nCherry Valley, IL — 1,339 4,160 — 98 — 1,339 4,239 19 5,597 1,107 1988Oct. 2018\n40 yrs.\n\nRockford, IL — 695 3,873 — 240 — 695 4,098 15 4,808 989 1979Oct. 2018\n40 yrs.\n\nRockford, IL — 87 785 — 17 — 87 802 — 889 170 1979Oct. 2018\n40 yrs.\n\nRockford, IL — 454 4,724 — 130 — 454 4,780 74 5,308 955 1957Oct. 2018\n40 yrs.\n\nPeoria, IL — 444 4,944 — 248 — 444 5,167 25 5,636 1,507 1990Oct. 2018\n40 yrs.\n\nEast Peoria, IL — 268 3,290 — 119 — 268 3,381 28 3,677 909 1986Oct. 2018\n40 yrs.\n\nLoves Park, IL — 721 2,973 — 70 — 721 3,039 4 3,764 745 1978Oct. 2018\n40 yrs.\n\nCrystal Lake, IL— 1,325 6,056 — 12 — 1,325 6,066 2 7,393 520 1977Aug. 2022\n40 yrs.\n\nChicago, IL— 787 4,931 — 350 — 787 5,229 52 6,068 471 1990Aug. 2022\n40 yrs.\n\nDayton, OH— 1,729 5,291 — 17 — 1,729 5,308 — 7,037 182 1978Aug. 2024\n40 yrs.\n\n— 25,601 172,183 3,622 70,424 14,249 25,665 250,971 9,443 286,079 59,626 \n\n__________\n\n(a)Consists of the cost of improvements subsequent to acquisition and acquisition costs, including construction costs on build-to-suit transactions, legal fees, appraisal fees, title costs, and other related professional fees. For business combinations, transaction costs are excluded.\n\n(b)The increase (decrease) in net investment was primarily due to (i) sales of properties, (ii) impairment charges, (iii) changes in foreign currency exchange rates, (iv) allowances for credit loss ([Note 6](#i52e238857d8641668248158c9abdf12c_139)), (v) reclassifications from net investments in direct financing leases to real estate subject to operating leases, and (vi) the amortization of unearned income from net investments in direct financing leases, which produces a periodic rate of return that at times may be greater or less than lease payments received.\n\n(c)Excludes (i) gross lease intangible assets of $3.0 billion and the related accumulated amortization of $1.5 billion, (ii) gross lease intangible liabilities of $202.3 million and the related accumulated amortization of $98.3 million, (iii) sale-leasebacks classified as loans receivable of $857.9 million, (iv) secured loans receivable of $35.8 million (as disclosed in [Schedule IV – Mortgage Loans on Real Estate](#i52e238857d8641668248158c9abdf12c_196)), (v) net investments in sales-type leases of $10.6 million, (vi) assets held for sale, net of $3.3 million, and (vii) real estate under construction of $79.9 million.\n\n(d)A reconciliation of real estate and accumulated depreciation follows:\n\nW. P. Carey 2025 10-K – 123\n\nW. P. CAREY INC.\n\nNOTES TO SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION\n\n(in thousands)\n\nReconciliation of Real Estate Subject to Operating Leases\n\nYears Ended December 31,\n\n202520242023\n\nBeginning balance$12,786,827 $12,049,896 $13,316,632 \n\nAcquisitions1,415,374 991,404 984,283 \n\nForeign currency translation adjustment498,340 (237,200)132,686 \n\nDispositions(494,755)(354,456)(256,339)\n\nReclassification from real estate under construction82,626 83,373 40,479 \n\nCapital improvements72,703 46,184 54,667 \n\nImpairment charges(55,558)(36,851)(17,885)\n\nReclassification from operating real estate54,582 48,370 — \n\nReclassification from direct financing leases14,993 120,921 25,460 \n\nReclassification to assets held for sale(3,741)— (46,985)\n\nReclassification from equity method investments— 84,396 — \n\nReclassification to sales-type lease— (9,210)(662,674)\n\nDerecognition through the Spin-Off— — (1,299,400)\n\nReclassification to operating real estate— — (221,028)\n\nEnding balance$14,371,391 $12,786,827 $12,049,896 \n\nReconciliation of Accumulated Depreciation for\nReal Estate Subject to Operating Leases\n\nYears Ended December 31,\n\n202520242023\n\nBeginning balance$1,701,892 $1,509,730 $1,672,091 \n\nDepreciation expense331,228 292,770 326,719 \n\nDispositions(72,359)(73,297)(58,861)\n\nForeign currency translation adjustment63,171 (27,239)14,192 \n\nReclassification from operating real estate3,311 2,314 — \n\nReclassification to assets held for sale(414)— (16,539)\n\nReclassification to sales-type lease— (2,386)(156,461)\n\nDerecognition through the Spin-Off— — (214,977)\n\nReclassification to operating real estate— — (56,434)\n\nEnding balance$2,026,829 $1,701,892 $1,509,730 \n\nReconciliation of Operating Real Estate\n\nYears Ended December 31,\n\n202520242023\n\nBeginning balance$1,198,676 $1,254,719 $1,077,326 \n\nDispositions(862,727)(21,638)(124,237)\n\nReclassification to operating leases(54,618)(48,370)— \n\nImpairment charges(8,662)— — \n\nForeign currency translation adjustment7,461 (1,476)5,088 \n\nCapital improvements5,303 4,702 4,593 \n\nReclassification from real estate under construction646 3,719 25,452 \n\nAcquisitions— 7,020 45,469 \n\nReclassification from operating leases— — 221,028 \n\nEnding balance$286,079 $1,198,676 $1,254,719 \n\nW. P. Carey 2025 10-K – 124\n\nReconciliation of Accumulated Depreciation for\nOperating Real Estate\n\nYears Ended December 31,\n\n202520242023\n\nBeginning balance$100,575 $80,057 $28,295 \n\nDispositions(60,612)(5,826)(34,580)\n\nDepreciation expense22,523 28,752 29,840 \n\nReclassification to operating leases(3,311)(2,314)— \n\nForeign currency translation adjustment451 (94)68 \n\nReclassification from operating leases— — 56,434 \n\nEnding balance$59,626 $100,575 $80,057 \n\nAt December 31, 2025, the aggregate cost of real estate that we and our consolidated subsidiaries own for federal income tax purposes was approximately $17.4 billion.\n\nW. P. Carey 2025 10-K – 125\n\nW. P. CAREY INC.\n\nSCHEDULE IV — MORTGAGE LOANS ON REAL ESTATE\n\nDecember 31, 2025\n\n(dollars in thousands)\n\nInterest RateFinal Maturity DateCarrying Amount\n\nDescription\n\nFinancing agreement — Las Vegas retail8.0 %Dec. 2026$18,367 \n\nFinancing agreement — Las Vegas mixed use7.0 %Nov. 202617,416 \n\n$35,783 \n\nReconciliation of Mortgage Loans on Real Estate\n\n Years Ended December 31,\n\n202520242023\n\nBeginning balance$31,856 $11,250 $39,250 \n\nFunding of secured loans receivable ([Note 6](#i52e238857d8641668248158c9abdf12c_139))\n3,927 31,856 — \n\nRepayments— (24,000)(28,000)\n\nGain on repayment of secured loan receivable— 10,650 — \n\nChange in allowance for credit losses ([Note 6](#i52e238857d8641668248158c9abdf12c_139))\n— 2,100 — \n\nEnding balance$35,783 $31,856 $11,250 \n\nW. P. Carey 2025 10-K – 126"}