2024-05-16 17:13:35 ET
Summary
- W.P. Carey has a chance of re-pricing after divesting its office properties, which is expected for the first half of FY 2024.
- The REIT's portfolio continues to shrink with the spin-off and divestment of office properties, but the company could soon return to growth.
- W.P. Carey has a low amount of lease expirations, reducing cash flow risks and supporting an investment in the company.
- Dividend coverage in Q1'24 was 1.32X and shares remain undervalued.
W.P. Carey ( WPC ) missed slightly on FFO expectations for the first-quarter, but maintained strong portfolio metrics (especially with regard to occupancy). The REIT is in the process of divesting its remaining office properties, and the conclusion of the office sale program represents an opportunity for a share pricing. W.P. Carey also confirmed its AFFO outlook for FY 2024, which is currently set at $4.65-$4.75 per-share, and the commercial REIT had no issues whatsoever in the first fiscal quarter to support its dividend with cash flow. Additionally, W.P. Carey is trading at an attractive valuation multiplier as well as below my fair value estimate of $66!...
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W.P. Carey Q1: A Fallen Angel Set For Resurrection