WPC

W. P. Carey Inc

Halal Rating :
Uncomfortable
Last Price $56.1
Market Cap $12.27b
1D Change

0.0 %

1 Year Change

-2.57 %

Next Earnings Date

Yet to be announced

Company Overview

W. P. Carey Inc. is a real estate investment trust (REIT) that specializes in investing in commercial properties through sale-leaseback transactions and build-to-suit financing. The company owns a diversified portfolio of operationally-critical commercial real estate across North America and Europe, which includes industrial, warehouse, office, retail, and self-storage facilities.

The company generates revenue primarily through long-term net lease arrangements where tenants are responsible for most property operating expenses. This business model focuses on acquiring high-quality properties and leasing them to creditworthy tenants under long-term leases.

Revenue Sources

Pass

Based on review of W. P. Carey's financial statements and business model, their primary revenue source is rental income from commercial real estate properties. The company does not derive significant revenue from prohibited activities such as alcohol, gambling, tobacco, or other haram sources. Their tenant base is diverse and primarily consists of companies operating legitimate businesses.

Reliance on Interest

Reporting Date Total Revenue Total Expense Interest Income Interest Expense Interest Income Ratio Interest Expense Ratio
June 30, 2024 $326.87m $65.31m $-65,000,000.0 $65.31m 19.98% 100.00%
March 31, 2024 $334.99m $68.65m $-69,000,000.0 $68.65m 20.49% 100.00%
Dec. 31, 2023 $142.78m $224.66m $-220,000,000.0 $224.66m 157.35% 100.00%

Analysis of W. P. Carey's financial statements shows significant interest expense relative to total expenses over the past four quarters. This is typical for REITs, which commonly use leverage to finance property acquisitions. The interest expense to total expense ratios consistently exceed the 5% threshold considered acceptable for Shariah compliance.

Operational Ethics

Pass

Based on review of W. P. Carey's operations and public disclosures, there is no evidence of significant ongoing associations with entities involved in human rights violations. The company's properties are primarily located in North America and Europe, with no indication of material business relationships with the state of Israel or the Chinese Communist Party.

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