W. P. Carey Inc. (NYSE:WPC) Q2 2020 Earnings Conference Call - Final Transcript

Jul 31, 2020 • 10:00 am ET


W. P. Carey Inc. (NYSE:WPC) Q2 2020 Earnings Conference Call - Final Transcript


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Hello, and welcome to W. P. Carey's Second Quarter 2020 Earnings Conference Call. My name is Victor, and I will be your operator today. [Operator Instructions] Please note that today's event is being recorded. [Operator Instructions]

I will now turn the program over to Peter Sands, Director of Institutional Relations. Mr. Sands, please go ahead.

Peter Sands

Good morning, everyone. Thank you for joining us today for our 2020 second quarter earnings call. Before we begin, I would like to remind everyone that some of the statements made on this call are not historic facts and may be deemed forward-looking statements. Factors that could cause actual results to differ materially from W. P. Carey's expectations are provided in our SEC filings. An online replay of this conference call will be made available in the Investor Relations section of our website at wpcarey.com, where it'll be archived for approximately one year, and where you can also find copies of our investor presentations and other related materials.

And with that, I'll hand the call over to our Chief Executive Officer, Jason Fox.

Jason E. Fox

Thank you, Peter, and good morning, everyone. I hope everyone is remaining safe and well as we continue to face the challenges of COVID-19. Today, I'll focus my remarks on several important topics; a recent portfolio performance into the pandemic, a recent investment activity, what we're seeing in the transaction environment and how we position the Company for growth while maintaining strong performance.

And after that, our CFO, Toni Sanzone will review our second quarter results which reflects our strong collections and our continued move out of the managed funds business. As well as touching upon our recent leasing activity and some of the specifics on our balance sheet and liquidity positions. We are joined today by John Park, our President and Brooks Gordon, our Head of Asset Management who are available to take questions when we get to that part of the call.

The 2020 second quarter, for the impact to the pandemic over the entire period which has been a stress test on net lease portfolios. I'm pleased to say our collections remains consistently strong throughout the quarter, ranking as one of the best in the net lease peer group as well as being among the strongest collections in the broader REIT sector, a reflection of several key elements of our approach.

When owning single-tenanted assets on a very long-term leases often for over 20 years unexpected events or significant market changes will occur. Our diversified approach in shares that issues within a particular asset type or industry will not have an outsized impact on our performance. Also, our disciplined investment process has always been focused on deep credit underwriting and mission-critical assets.

We've made important decisions over the past five decades to focus on companies, industries and real estate that we believe can withstand dislocations in the market and respond to challenges and changes in the business environment. By focusing on long-term risk adjusted returns rather than near-term growth at