2024-06-16 14:57:23 ET
Summary
- Some investors and seemingly the overall market have assigned a heavy discount to W. P. Carey Inc. because of its relatively recent dividend cut.
- As a result, WPC is valued just as or even slightly below other net lease retail REITs such as Realty Income and EPRT.
- The issue here is that WPC carries a completely different property profile, which should be valued much higher than the general net lease retail properties.
- On top of this, the growth prospects of WPC are very encouraging, which should stimulate an even higher exposure to high multiple properties and AFFO growth.
- As the WPC puts its ~1$ billion liquidity at work, executing its ambitious M&A goal for 2024, the market should gradually re-rate the REIT higher.
Lately, there has been a lot of chatter around W. P. Carey Inc. (NYSE: WPC ), where many investors (and seemingly the market as well) have questioned the Management's decision to cut the dividend and what kind of signal it sends about WPC's commitment to distribute consistent dividends going forward....
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W. P. Carey: The Market Is Fundamentally And Temporarily Wrong Here