W.P. Carey Inc. (REIT)

Cybersecurity and data protection · Third party data security and vendors

We may store or come into contact with sensitive information and data. If we or our third-party service providers fail to comply with applicable privacy or data security laws in handling this information, including the General Data Protection Regulation and the California Consumer Privacy Act, we could face significant legal and financial exposure.

Technology infrastructure · Technology systems and infrastructure failure

The primary risks that could directly result from the occurrence of a cyber incident include operational interruption, damage to our relationship with our tenants, expensive remediation efforts, liability exposure under federal and state law, and private data exposure.

Cybersecurity and data protection · Data breaches and cyber attacks

The occurrence of cyber incidents, or a deficiency in our cyber security, could negatively impact our business by causing a disruption to our operations, a compromise or corruption of our confidential information, and/or damage to our business relationships, all of which could negatively impact our financial results.

Customer and revenue · Customer retention and subscription renewal

A significant amount of our leases will expire within the next five years and we may have difficulty re-leasing or selling our properties if tenants do not renew their leases. Approximately 19% of our leases, based on our ABR as of December 31, 2025, are due to expire within the next five years.

Strategic execution · Merger acquisition and divestiture risks

We may acquire or develop properties or acquire other real estate related companies, and this may create risks. We may not succeed in consummating desired acquisitions or in completing developments on time or within budget. When we do pursue a project or acquisition, we may not succeed in leasing newly developed or acquired properties at rents sufficient to cover the costs of acquisition or development and operations.

Customer and revenue · Customer concentration and key customer dependence

Our portfolio is concentrated by tenant industry and geographic location. We are not required to meet any tenant industry, geographic diversification or property-type standards. Therefore, our investments may become concentrated by tenant industry, geographic location, type or tenant which could subject us to significant risks with potentially adverse effects on our investment objectives. For example, 9.6% and 9.4% of our ABR as of December 31, 2025 is concentrated by tenant industry in packaged foods & meats and food retail, respectively.

Core operations · Operational disruption and business continuity

A cyber incident is considered to be any adverse event that threatens the confidentiality, integrity, or availability of our information resources, which could be an intentional attack or an unintentional accident or error. Information technology, communication networks, and other computer resources are essential for us to carry out important operational activities and maintain our business records.

Market and investment · Market volatility and economic cycles

The value of our real estate is subject to fluctuation. We are subject to all of the general risks associated with the ownership of real estate, which include: adverse changes in general or local economic conditions, including changes in interest rates or foreign exchange rates; changes in the supply of, or demand for, similar or competing properties; competition for tenants and changes in market rental rates.

Capital structure and performance · Debt management and refinancing

Our level of indebtedness could have significant adverse consequences and our cash flow may be insufficient to meet our debt service obligations. Our consolidated indebtedness as of December 31, 2025, was approximately $8.7 billion, representing a consolidated debt to gross assets ratio of approximately 43.4%.

International and currency · International operations and emerging markets

We have invested, and may continue to invest, in properties located outside the United States. At December 31, 2025, our real estate properties located outside of the United States represented 39% of our ABR and our real estate properties located in Europe represented 33% of our ABR. These investments may be affected by factors particular to the local jurisdiction where the property is located and may expose us to additional risks.

Capital structure and performance · Dividend policy and capital allocation

If we fail to make required distributions, we may be subject to federal corporate income tax. To continue to qualify and be taxed as a REIT, we will generally be required to distribute at least 90% of our REIT taxable income (determined without regard to the dividends-paid deduction and excluding net capital gain) each year to our stockholders.

Credit and liquidity · Debt service and covenant compliance

Restrictive covenants in our credit agreement and indentures may limit our ability to expand or fully pursue our business strategies. The credit agreement for our Senior Unsecured Credit Facility and the indentures governing our Senior Unsecured Notes contain financial and operating covenants that, among other things, require us to meet specified financial ratios and may limit our ability to take specific actions.

Capital structure and performance · Credit rating and cost of capital

A downgrade in our credit ratings could materially adversely affect our business and financial condition as well as the market price of our Senior Unsecured Notes. Our credit ratings could change based upon, among other things, our historical and projected business, financial condition, liquidity, results of operations, and prospects.

Market and investment · Asset valuation and impairment

Certain of our leases permit tenants to purchase a property at a predetermined price, which could limit our realization of any appreciation or result in a loss. Under our existing leases, certain tenants have a right to repurchase the properties they lease from us. If a tenant exercises its right to purchase the property and the property's market value has increased beyond that price, we would not be able to fully realize the appreciation on that property.

Market and investment · Interest rate and yield curve risk

High interest rates and equity costs may increase our cost of capital relative to our competitors and place additional pressure on investment spreads if capitalization rates (which generally respond to higher interest rates on a lag) remain constant or decline.

Capital structure and performance · Financial performance volatility

We are subject to the volatility of the capital markets, which may impact our ability to deploy capital. The trading volume and market price of our common stock may fluctuate significantly and be adversely impacted in response to a number of factors, including disruption in the banking industry, inflation, trade disputes, and other macroeconomic developments.

Credit and liquidity · Liquidity and cash flow constraints

Our ability to generate sufficient cash flow determines whether we will be able to (i) meet our existing or potential future debt service obligations; (ii) refinance our existing or potential future indebtedness; and (iii) fund our operations, working capital, acquisitions, capital expenditures, and other important business uses. Our future cash flow is subject to many factors beyond our control.

Geopolitical and trade · International conflicts and tensions

Geopolitical and military conflict risk and adverse market conditions caused by changes in national or regional economic or political conditions, which may impact relative interest rates, the terms or availability of debt financing, customers' ability and willingness to renew agreements, make payments, and enter into new agreements, and energy costs; and political risks associated with our Eastern European assets as a result of the ongoing conflict between Russia and Ukraine.

Economic and market conditions · Inflation and deflation pressures

Increased energy and commodity prices in Europe.

Geopolitical and trade · Trade policies tariffs and sanctions

Trade disputes with other countries, the possibility of changes to some international trade agreements, and government regulatory actions, including the imposition of tariffs, trade barriers or other protectionist actions.