2024-02-13 10:23:06 ET
Summary
- W. P. Carey Inc. reset its dividend rate at $0.86 per share in January after the REIT made a surprise announcement last year to exit the office market.
- The REIT's portfolio is now more focused on industrial and warehouse properties, representing 59% of assets.
- Robust demand for commercial real estate resulted in consistent 4%+ same store growth, on a Y/Y basis, throughout 2023. A strong U.S. economy provides tailwinds for 2024 as well.
- W. P. Carey has a forward dividend coverage ratio of 135-138% based off of the dividend reset and new AFFO guidance.
- W. P. Carey Inc. shares are cheap and provide a well-protected 6.1% dividend yield.
After W. P. Carey Inc. (WPC) spun off its office properties into a new business called Net Lease Office Properties (NLOP) in Q4 -- which I recommended as a hugely interesting spinoff revaluation play -- the commercial real estate investment trust ("REIT") reset its dividend rate at $0.86 per-share in January. Shares also sold off 6.5% after the commercial REIT disclosed funds from operations ("FFO") that missed expectations by only $0.01 per-share, which I believe creates a new buying opportunity....
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W. P. Carey: A Value Scoop With A 6.1% Yield