Company Overview - W. P. Carey (NYSE: WPC) is a Real Estate Investment Trust (REIT) known for its diversified commercial real estate portfolio, which includes industrial, warehouse, retail, and office properties [1]. Dividend Strategy - The company has implemented a dividend cut that began in 2023 and continued into 2024, indicating a shift in its financial strategy [1]. Investment Philosophy - The investment approach emphasizes long-term ownership of stocks rather than short-term price predictions, focusing on valuations rather than target prices [1]. - The company has transitioned from issuing many Sell recommendations to a simplified approach of "Buy or Don't Buy," with future articles likely to be categorized as Buy or Hold [1].

Group 1 - The focus is on growth and dividend income as a strategy for retirement planning [1] - The portfolio is structured to generate monthly dividend income that grows through reinvestment and annual increases [1] Group 2 - The article expresses personal opinions and is not intended as investment advice [2] - It emphasizes the importance of conducting individual research before making investment decisions [2]

After 24 consecutive annual dividend increases, W.P. Carey (WPC 1.81%) did something that seemed unthinkable -- it cut its dividend by 20%. That decision, which was made in 2023 but impacted the first dividend in 2024, has resulted in dividend investors avoiding this net lease real estate investment trust (REIT).That could be a buying opportunity if you have $1,000 or $100,000 to invest right now. Here's what you need to know.What did W.P. Carey do?At its core, W.P. Carey uses the fairly simple net lease ap ...

Core Viewpoint - W.P. Carey is currently undervalued, offering a 6.6% yield despite a 40% decline in share price since 2019, making it an attractive option for passive income seekers [1][3]. Group 1: Stock Price Pressure - W.P. Carey faced stock price pressure due to its decision to spin off its office segment in late 2023, which led to a reduction in dividend payouts [3][4]. - The company’s dividend was lowered by 19.7% to $0.86 per share in 2023, contributing to investor caution [9]. - Rising Treasury yields, which increased by 27.9% since mid-September 2023, have made reliable dividend stocks like W.P. Carey less attractive [5][6]. Group 2: Financial Performance - In Q3 2024, W.P. Carey reported adjusted funds from operations (FFO) of $1.18 per share, only 12% lower than the previous year [8]. - The REIT raised its dividend payout four times in 2024 to $0.88 per share, indicating a recovery and potential for future increases [9][10]. - The company invested $1.6 billion in 2024 into single-tenant warehouse and industrial properties, which is expected to enhance future FFO [10][11]. Group 3: Investment Outlook - W.P. Carey is positioned to support future dividend increases due to sufficient earnings and a growing portfolio [11]. - The current high yield makes it a compelling option for income-seeking investors, even with a slower growth rate [12].

Shares of W.P. Carey (WPC -1.64%) declined 15.9% in 2024, according to data from S&P Global Market Intelligence. That significantly underperformed the S&P 500, which gained 23.3% on the year. Here's a look at what weighed on the diversified REIT last year and whether it can bounce back in 2025.Tearing down to build back betterW.P. Carey made a major strategy shift in late 2023. The REIT decided to exit the challenging office sector by spinning off and selling its office portfolio. As a result of that move a ...

Portfolio Acquisitions and Investments - The company spent $200 million to acquire 106 discount retail properties across 21 states, leased to Dollar General, with a weighted-average remaining lease term of 14.3 years and built-in rent escalation [1] - It plans to purchase nine additional stores in Q1 2024 for around $20 million [1] - The company acquired a 1.1 million-square-foot U.S. battery factory leased to Canadian Solar for $100 million, with a 12.4-year NNN lease and rent escalation clause [1] - It completed a $100 million sale-leaseback of a five-building manufacturing and industrial campus in Mexico, totaling 1.1 million square feet, with a 25-year NNN lease and rent escalators [1] - The company purchased a 209,000-square-foot U.S. data center leased to a Brookfield Infrastructure subsidiary for $100 million, with an 11.1-year NNN lease and rent escalators [1] Portfolio Restructuring and Strategy - The company spent much of 2023 remodeling its portfolio by removing offices and non-core properties, allowing it to upgrade to higher-quality properties with better long-term prospects [3] - It exited the office sector and sold off other non-core properties, using the proceeds to invest $1.6 billion in new properties [5] - The company focused on industrial real estate (60% of investment volume) and retail properties (30%), with 75% of investments in North America and 25% in Europe [8] - It achieved a strong initial real estate cap rate of 7.5%, with an average yield of around 9% when factoring in rent growth over the lease terms [8] Financial Performance and Dividend Growth - The company raised its dividend four times in 2023, with a current yield of nearly 6.5%, and is poised for further growth in 2025 due to new investments and growth drivers [6] - It ended 2024 with a total investment volume of $1.6 billion, within its guidance range of $1.25 billion to $1.75 billion, and a record Q4 investment volume of $845 million [7] - The company's strong finish in 2024 positions it to grow its adjusted funds from operations (FFO) and dividend in 2025, supported by best-in-class rent escalation [9] Liquidity and Future Investment Potential - The company has substantial liquidity from selling off its office portfolio and other non-core properties, enabling it to continue making accretive acquisitions without issuing additional stock [2][10] - It holds other non-core properties, including 78 self-storage centers, four hotels, and two student housing properties, as well as a stake in cold storage REIT Lineage Logistics, which could be liquidated [11] - The company is well-positioned to continue making investments in 2025, leveraging its strong liquidity and portfolio restructuring efforts [10]

Includes Record Fourth-Quarter Investment Volume of $845 Million NEW YORK, Jan. 8, 2025 /PRNewswire/ -- W. P. Carey Inc. (W. P. Carey, NYSE: WPC), a leading net lease REIT specializing in corporate sale-leasebacks, build-to-suits and the acquisition of single-tenant net lease properties, today announced investment volume for the 2024 full year of approximately $1.6 billion at a weighted-average initial cap rate of approximately 7.5% and an average yield of approximately 9% (which reflects contractual rent e ...

W. P. Carey (NYSE: WPC ) is likely a REIT that needs no introduction. The company angered many investors when they raised and quickly cut the dividend in late 2023 from $1.07 to $0.86.Contributing analyst to the iREIT+Hoya Capital investment group. The Dividend Collectuh is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage everyone to do their own due diligence. I'm a Navy veteran w ...

Founded in 1973, W. P. Carey (NYSE: WPC ) is one of the largest net lease REITs that focuses on investing for the long run , as stated on the front page of its own website. The companyI'm Luuk Wierenga, an economics teacher from the Netherlands with a strong focus on income investing. My investment journey began during COVID-19, and since then, I've specialized in identifying high-yield Real Estate Investment Trusts (REITS) that provide stable passive income. As an educator, I apply fundamental economic ins ...

Shares of W. P. Carey (NYSE: WPC ) have not had a great year in 2024: with the year coming to a close and only about two weeks left to go, an investment in W. P. Carey lost 12% in valueI look for high-risk, high-reward situations, mainly in the technology markets. I am an early buyer of Bitcoin and my portfolio mainly focused on companies with asymmetric long-term upside. My top holdings include: Bitcoin, Tesla, Google, Amazon and Nvidia.Analyst’s Disclosure: I/we have a beneficial long position in the shar ...