2024-02-09 14:00:45 ET
Summary
- W. P. Carey Inc.'s performance was slightly below expectations, with ongoing dispositions and modest investing activity.
- The company is facing significant debt coming due, which must be handled, and could lead to higher refinancing rates and interest expenses.
- W.P. Carey continues to sell off assets and redeploy funds into other investments, but the narrowed 2024 guidance adds uncertainty.
- The Street hates uncertainty.
- Is the W. P. Carey dividend safe here?
We are still following W. P. Carey Inc. ( WPC ), a bit of a controversial real estate investment trust, or REIT, that has been undergoing substantial change. There are just so many question marks here, but most notably, in the just-reported earnings . Performance was slightly below expectations, and management is guiding for ongoing dispositions, with modest investing activity. In recent weeks W.P. Carey's spinoff of Net Lease Office Properties ( NLOP ), which was completed on November 1, carving out their 4th largest business line, has been performing well. The overall market has been raging higher since we covered the stock with a neutral "don't buy" rating. Shares rebounded into the low $60s, but have now retraced back to about levels where we initiated....
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Controversial REIT W. P. Carey Stock Drops, Again, Avoid It