Core Insights - JR Research is recognized as a top analyst in technology, software, and internet sectors, focusing on growth and GARP strategies [1] - The investment approach emphasizes identifying attractive risk/reward opportunities with strong price action to generate alpha above the S&P 500 [1][2] - The investment group Ultimate Growth Investing specializes in high-potential opportunities across various sectors, targeting stocks with robust fundamentals and turnaround potential [3] Investment Strategy - The focus is on growth investing opportunities that offer significant upside potential while avoiding overhyped and overvalued stocks [2] - The strategy includes capitalizing on battered stocks that have substantial recovery possibilities [2] - The investment thesis typically has an 18 to 24 month outlook for realization [3] Group Characteristics - Ultimate Growth Investing is designed for investors looking to capitalize on growth stocks with strong fundamentals and buying momentum [3] - The group targets turnaround plays at highly attractive valuations [3]

This hasn't been the best year for W.P. Carey, but there's a good reason to be excited about the future. It is not a good start to a year when one of the first things you hand investors is a dividend cut. That's exactly how W.P. Carey (WPC 0.45%) began 2024, with a 20% dividend cut. But there's an interesting thing about that 20% number and what came after it. Here's why you might want to buy this dividend-cutter while its shares are below $65 and the dividend yield is above 5.5%. The bad news was announced ...

The REIT can produce a lot of passive income. W. P. Carey (WPC -1.14%) has a long history of paying dividends. While the diversified real estate investment trust (REIT) reset its payment level last year after making the strategic decision to exit the troubled office sector, it still offers a high yield. At more than 5.5%, it's significantly above the S&P 500's dividend yield (less than 1.5%). That high dividend yield enables investors to generate more income for every dollar they invest in the REIT's stock. ...

Core Viewpoint - W. P. Carey has strategically exited the office sector and is now focused on rebuilding its portfolio and increasing shareholder payouts, having already raised its dividend three times this year by nearly 2% [1][8]. Group 1: Strategic Decisions - The company made a significant decision to exit the office sector due to various headwinds, which previously accounted for approximately 16.1% of its annual base rent [3]. - A portion of the office portfolio was spun off to shareholders, leading to the creation of Net Lease Office Properties [3]. - Following the exit, W. P. Carey sold all remaining office properties and had a major tenant exercise an option to purchase self-storage properties [3]. Group 2: Financial Adjustments - The company had to reset its dividend, opting for a nearly 20% reduction to lower its payout ratio from around 80% to a range of 70%-75% [4]. - This adjustment allows W. P. Carey to retain more cash for new investments, strengthening its financial position [4]. Group 3: Portfolio Rebuilding - Proceeds from property sales have raised over $1 billion, which the company plans to reinvest into properties with better long-term rent growth potential, such as warehouses and industrial properties [5]. - By the end of July, W. P. Carey had invested $641 million into new properties, including a $190 million acquisition of a 19-property industrial and warehouse portfolio [6]. Group 4: Future Outlook - The company expects its adjusted funds from operations (FFO) to trend higher in the second half of the year, with liquidity at an all-time high and a growing deal pipeline [7]. - W. P. Carey anticipates its 2024 investment volume to be between $1.25 billion and $1.75 billion [7]. - The upward trend in dividends is expected to continue as the company aims to grow its payout alongside its adjusted FFO, potentially at an accelerated rate due to increased investment volume [8][9].

After a reset year, W.P. Carey is primed to start growing its business again. It has already begun bringing investors back to the stock. It would be an understatement to suggest that W.P. Carey (WPC -1.39%) let investors down in 2024. But there was a good reason for the decision that most infuriated Wall Street. And the moves that W.P. Carey made as the year got underway have now set it up for a much brighter future. Here's what you need to know. Close, but not enough: W.P. Carey's big letdown By 2023, W.P. ...

NEW YORK, Sept. 19, 2024 /PRNewswire/ -- W. P. Carey Inc. (W. P. Carey, NYSE: WPC) reported today that its Board of Directors increased its quarterly cash dividend to $0.875 per share, equivalent to an annualized dividend rate of $3.50 per share. The dividend is payable on October 15, 2024 to stockholders of record as of September 30, 2024. W. P. Carey Inc. W. P. Carey ranks among the largest net lease REITs with a well-diversified portfolio of high-quality, operationally critical commercial real estate, wh ...

Group 1 - W.P. Carey announced plans to sell or spin off all office assets [1] - The company decided to reduce its dividend payout ratio based on Adjusted Funds From Operations (AFFO) [1] - The dividend cut was unpopular among investors [1] Group 2 - The company is part of a larger community of real estate investors on Seeking Alpha, which has over 2,500 members [2] - The community has received a high rating of 4.9 out of 5 from over 500 reviews [2] - A free trial is offered to new members, allowing them to explore the community without any initial cost [2]

Core Viewpoint - W.P. Carey is positioned as an attractive option for generating passive income through its robust real estate portfolio and consistent dividend growth [2][10]. Company Overview - W.P. Carey is one of the largest net lease REITs, focusing on long-term leases that require tenants to cover all operating costs [3]. - The company owns nearly 1,300 high-quality properties across North America and Europe, including warehouses, industrial, and retail spaces, as well as 89 self-storage properties [4]. Financial Performance - The REIT expects to generate adjusted funds from operations (FFO) between $4.63 and $4.73 per share this year, which comfortably covers its quarterly dividend payment of $0.87 per share [5]. - The dividend payout ratio is less than 75% of adjusted FFO, providing financial flexibility for new investments [6]. Growth Strategy - W.P. Carey plans to invest between $1.25 billion and $1.75 billion in new properties this year, having already secured $641 million in new investments by the end of July [8]. - The company is also involved in redevelopment and expansion projects, with $38 million in active capital investments scheduled for completion this year [8]. Dividend Outlook - The REIT has raised its dividend payout twice this year and expects to continue increasing it in line with adjusted FFO growth [9].

Core Thesis - W P Carey Inc (WPC) is undervalued with a P/FFO of 12 2x compared to the net lease retail REIT sector average of 13 5x and diversified REIT sector average [3] - The company's AFFO generation is primarily from industrial and warehouse properties which typically command higher multiples [3] - WPC has an investment grade balance sheet robust cash generation and a conservative AFFO payout ratio supporting growth [3] Valuation and Market Position - WPC's FWD P/FFO multiple is 13 1x lower than Realty Income (14 9x) and STAG Industrial (16 5x) [4] - The company should theoretically trade between Realty Income and STAG Industrial due to its heavy bias towards industrial/warehouse properties [4] Q2 2024 Performance - AFFO per share increased to $1 17 up $0 03 from the prior quarter driven by organic same store rent growth of 2 9% [5] - Positive rent recapture of 116% added 6 5 years of incremental weighted average leases with 50 basis points of incremental ABR [5] - Occupancy reached 98 8% [6] Asset Recycling and Growth Strategy - WPC has divested most office buildings reducing top-line generation but the asset recycling process is nearly complete [7] - The company has invested $641 million YTD at an initial weighted average cash cap rate of 7 7% focusing on industrial and warehouse properties [7] - 60% of investments are tied to CPI-linked rent escalators with an average cap of ~4 5% [7] Debt and Financing - WPC retired most of its 2024 debt reducing outstanding debt to $61 million with $700 million due in 2025 at a blended average interest rate of 4 2% [7] - The company issued $1 1 billion in unsecured notes with coupon rates of 4 25% and 5 375% minimizing future AFFO pressure [7] Future Outlook - WPC is expected to register continued AFFO growth as the asset recycling program concludes and liquidity is deployed at attractive cap rates [9] - Refinancing risk has been neutralized with future interest rate cuts likely to provide additional boosts to AFFO growth [9] - The company's P/FFO multiple remains below sector average despite its strong position in the industrial and warehouse segment [9]

In the middle of a transition year, W.P. Carey has a 5.7% dividend yield backed by a strong business and a cash pile that needs to be invested. Investors' first reaction to a dividend cut is often to hit the sell button. After that point, many on Wall Street won't even consider the dividend cutter again for years. That's the position that W.P. Carey (WPC 1.20%) finds itself in today as it looks to regain investor trust after a dividend cut. But there are some very good reasons to consider buying the net lea ...