2024-03-26 09:36:19 ET
Summary
- W. P. Carey has made significant changes to its portfolio, including a spinoff of office assets, the repurchase of self-storage assets by U-Haul, and the disposition of hotel properties.
- The company's portfolio now consists primarily of industrial and retail properties, making it more comparable to other net lease REITs like Realty Income.
- WPC's stock price has not reflected these changes, trading at a conservative AFFO multiple compared to its peers, potentially presenting an opportunity for investors of all shapes and sizes.
Over the past year, few REITs have garnered as much controversy as W. P. Carey ( WPC ). On September 21 st , just over six months ago, WPC announced a strategic plan to exit the office sector entirely through the spinoff of an entirely new REIT called Net Lease Office Properties ( NLOP ). Along with the spinoff, came a dividend cut. The cut was creatively named a “reset” as WPC sought to realign the cash payments to a more manageable portion of adjusted funds from operations. However, WPC’s strategic changes have gone much deeper than the highly public spinoff. In fact, WPC’s portfolio today looks very different from our prior coverage in 2021....
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For further details see:
W. P. Carey: Two Roads To Riches For A Beaten Down REIT