WPC to Acquire CPA®:18 – Global

Adds a Well-Diversified Net Lease Portfolio and Attractive Operating Self-Storage Assets

February 2022

		•	Acquisition by W. P. Carey (NYSE: WPC) of CPA:18 - Global ("CPA:18")
Transaction		•	Total transaction value of ~$2.7 Bn including $1.1 Bn of debt assumed or repaid at closing
Details		•	Consideration per CPA:18 share consists of 0.0978x shares of WPC common stock (fixed exchange ratio) and $3.00 of cash(1)
		•	Pro forma WPC ownership of approximately 93% by legacy WPC shareholders and approximately 7% by CPA:18 shareholders (2)

Management and	• No changes to WPC's management team or Board of Directors
Board

• No expected change to WPC's quarterly dividend as a result of the transaction

Dividend

• WPC intends to maintain its current dividend policy post-closing with a focus on continuing its consistent increases

Earnings	• Immediately accretive to Real Estate AFFO - largely offsets reduction in investment management income from transaction
Impact

Planned		•	Existing purchase option on 11 European student housing assets owned by CPA:18 expected to be exercised prior to closing
Dispositions
	•	Planned disposition of one additional operating student housing asset and certain European office assets will contribute to partially
to Fund Cash in
Transaction			funding cash component of the transaction

Closing		•	Expected to close in Q3 2022 subject to customary closing conditions, including CPA:18 shareholder approval
Considerations		•	WPC shareholder approval is not required

1. Based on WPC's trailing 3-day volume weighted average price ("VWAP") of $76.17 as of February 25, 2022.
2. Excludes the ~5.6% of CPA:18 shares owned by WPC as of December 31, 2021.

Positive Impact

to Earnings

Similar Net Lease

Portfolio with

Operating Self

Storage Assets

Maintains

Strong, Scalable

Balance Sheet

Enhances

Growth Profile

Completes

Exit of IM

Business

• Transaction expected to generate Real Estate earnings accretion of ~2% on a full year basis
• Virtually 100% of total pro forma AFFO will be derived from higher-multiple real estate related earnings
• Replaces finite investment management fee streams with earnings derived from long-term, recurring lease revenues
• Net lease portfolio assembled by WPC as advisor to CPA:18 that aligns with existing portfolio
• Further increases portfolio diversification and reduces top 10 tenant concentration to below 20%
• Includes substantial operating self-storage portfolio with potential upside
• Collapses remaining joint ventures between WPC and CPA:18 on seven properties
• Further solidifies WPC as one of the largest REITs in the RMZ; increases rank to #23
• No material change to balance sheet given size and leverage of CPA:18
• Expect to maintain BBB (stable) and Baa2 (positive) unsecured credit ratings
• Enhances operating efficiency with G&A spread over larger asset base
• Additional growth opportunities through improved cost of capital resulting from a simplified business with increased contribution from higher-multiple real estate earnings and simplified financial reporting
• Self-storageportfolio within CPA:18 may further enhance WPC rent growth upon completion of transaction
• Potential future earnings upside from refinancing higher cost secured CPA:18 debt with WPC bonds
• Completes planned exit of investment management business with liquidation of last sizeable managed fund
• No integration risk given advisory role and strong track record of prior CPA acquisitions

W. P. Carey's successful track record of integrating prior acquisitions and growing its business is evident in its improved

balance sheet, portfolio metrics, earnings quality and operating efficiency

Total Enterprise Value

CPA Acquisition

IM
	Assets Under Management
	Revenue Composition (RE / IM)
(3)
Earnings/	Debt to Gross Assets
Sheet	Secured Debt to Gross Assets
Balance	Unencumbered Net Lease ABR % (4)
	Unsecured Credit Rating

$11.1 Bn		$17.2 Bn		$23.4 Bn (1)
2014 YE		2018 YE		Pro Forma CPA:18
CPA:16 - $4.0 Bn		CPA:17 - $5.9 Bn		CPA:18 - $2.7 Bn (2)
$9.2 Bn		$7.6 Bn		$229 MM
82% / 18%	90% / 10%	99% / < 1%
46%	43%	~42%
29%	18%	~7%
38%	53%	~87%
Baa2 Stb /		Baa2 Stb /		Baa2 Pos /
BBB Stb		BBB Stb		BBB Stb

Portfolio Progression (4)

WALT	9.1 Years	10.2 Years	10.6 Years
Top 10 Tenant Concentration	31.8%	23.5%	19.1%
Warehouse Asset Type	18.0%	20.7%	23.6%
Office Asset Type	31.6%	25.5%	20.6%

Note: Pro forma CPA:18 data as of December 31, 2021 unless otherwise noted.

1. Pro forma enterprise value based on public filings. WPC stock price of $77.66 as of February 25, 2022. Share count assumes issuance of approximately 14 million shares plus the WPC share count as of December 31, 2021.
2. Equity per share based on WPC's trailing 3-day VWAP of $76.17 as of February 25, 2022 and a 0.0978x exchange ratio plus cash consideration, and CPA:18's share count as of December 31, 2021.
3. Based on public filings. Pro forma metrics based on data as of December 31, 2021, inclusive of select transaction adjustments.
4. Figure based on pro forma annualized base rent ("ABR"). Includes only net lease properties and excludes net lease student housing properties under a purchase option and three additional net lease assets in CPA:18's portfolio scheduled for disposition.

WPC is one of the largest REITs in the RMZ index and the second largest net lease REIT

Largest REITs in the RMZ Index ($Bn) (1)

Company	Equity Market Cap
1	Prologis Inc	$109.9
2	Equinix Inc	64.9
3	Public Storage	63.5
4	Simon Property Group Inc	45.9
5	Realty Income Corp	39.9
6	Digital Realty Trust Inc	39.1
7	Welltower Inc	37.7
8	AvalonBay Communities Inc	34.1
9	Equity Residential	32.8
10	Alexandria Real Estate Equities Inc	31.0
11	Extra Space Storage Inc	26.0
12	Mid-America Apartment Communities Inc	24.2
	(1)
13	Invitation Homes Inc	23.7
14	Ventas Inc	21.7
15	Sun Communities Inc	21.4
16	Essex Property Trust Inc	21.2
17	Duke Realty Corp	20.6
18	Boston Properties Inc	19.3
19	UDR Inc	17.8
20	VICI Properties Inc	17.7
21	Camden Property Trust	17.4
22	Healthpeak Properties Inc	17.1
23	W. P. Carey Inc (Pro Forma)	15.8
24	Kimco Realty Corp	15.1
25	Equity LifeStyle Properties Inc	14.1
26	Iron Mountain Inc	14.1
27	American Homes 4 Rent	13.4
28	Host Hotels & Resorts Inc	13.4
29	Medical Properties Trust Inc	12.4
30	CyrusOne Inc	11.7

WPC is a Top 25 REIT

Net Lease REITs: Equity Market Cap ($Bn) (1)

$39.9

	$15.8
		$7.6	$7.2
			$8.5
				$6.0
						$4.6	$4.4	$3.8
O	WPC (PF) STOR	NNN	STAG	SRC	ADC	LXP	BNL

Net Lease REITs: G&A Efficiency (% of Gross Assets) (2)

74 bps

	69 bps	67 bps
			59 bps	55 bps
					50 bps	50 bps	50 bps
								30 bps
STAG	LXP	SRC	BNL	WPC (PF)	STOR	NNN	ADC	O

Source: Factset and company filings as of February 25, 2022.

1. RMZ constituents ranked by Equity Market Cap based on FactSet as of February 25, 2022. Pro forma enterprise value based on public filings. WPC stock price of $77.66 as of February 25, 2022. Share count assumes issuance of approximately 14 million shares plus the WPC share count as of December 31, 2021.
2. Based on full year G&A plus stock compensation divided by total assets plus accumulated depreciation and amortization, as of December 31, 2020. WPC data is pro forma for merger close.