NEW YORK CITY—W. P. Carey Inc. raised its full-year guidance on adjusted funds from operations Tuesday after reporting strong quarterly results. The net lease REIT beat consensus estimates on its second-quarter revenues—$252.9 million, compared to a consensus of $154.36 million—while its earnings per share was in line with the estimate of 38 cents per share.

On a year-over-year basis, WPC's AFFO and AFFO per diluted share increased 68.3% and 15.2%, respectively, to $122.2 million or $1.21 per diluted share, respectively, from $72.6 million, or $1.05 per diluted share the year prior. The REIT said this increase was due primarily to additional real estate revenues from properties acquired in its merger with CPA:16—Global, which closed in late January.

“We have better clarity on our earnings capacity now that we have completed our first full quarter following the merger with CPA:16—Global and also have enhanced our supplemental disclosure,” says Trevor Bond, WPC's president and CEO. During Q2, the REIT continued to be “an active capital recycler,” disposing of several smaller properties with relatively short lease terms “while focusing on building an opportunity pipeline containing longer-duration assets. Also, our investment management business generated strong revenues as a result of robust fundraising and transaction volumes on behalf of the managed REITs.”

In view of its AFFO for the first half of 2014 and “with greater visibility into the second half of the year,” Bond says the REIT is raising its guidance. The boost to a range between $4.62 and $4.82 per diluted share, from $4.40 to $4.65 per diluted share, is based on assumed full-year total acquisition volume of $1.9 billion to $2.6 billion, including approximately $1.4 billion to $2.0 billion on behalf of WPC's managed REITs.