2024-02-21 15:00:00 ET
Summary
- WPC remains a Buy, thanks to its discounted valuations/ stock prices and the expanded forward dividend yields.
- The REIT is still delivering great results, with the FQ4'23 misses attributed to the spin-off and asset sale timing.
- With an increasingly robust cash position and profitable REIT business, we believe that the management has made the prudent choice indeed, especially since part of its debt is maturing soon.
- Readers must also note that more businesses aim to reduce their office footprints in 2024, with the flexible work arrangement increasingly becoming a new normal.
- It goes without saying that REITs may face further headwinds, as the cooling inflation triggers the deceleration in its rental revenues through FY2026.
We previously covered W. P. Carey ( WPC ) in November 2023, discussing its de-risking path through asset divestiture, reduced investment target, and deleveraging, against those observed in Realty Income ( O )....
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For further details see:
W. P. Carey: Take Advantage Of Its Discounted Transition