With Its Repositioning Complete, This Nearly 6%-Yielding Dividend Stock Expects to Return to Growth Mode

Core Viewpoint - W.P. Carey is transitioning away from the office market, which is expected to lead to a growing passive income stream as the company focuses on more stable property sectors and rebuilds its portfolio [1][6][9] Group 1: Transition and Strategy - The company made a strategic decision to exit the office market due to ongoing challenges, including higher vacancy rates and necessary capital expenditures [6] - W.P. Carey completed its office sales process in the second quarter, allowing it to focus on growth in the second half of the year [2][9] - The REIT has sold significant assets, including $152.2 million in the second quarter and $889.2 million in the first quarter, to reposition its portfolio [4][5] Group 2: Financial Performance - Adjusted funds from operations (FFO) fell 14% in the second quarter to $1.17 per share, impacted by various factors including property sales and lease restructurings [3] - Despite the sales, the retained portfolio showed solid performance with a 2.9% same-store rent growth, driven by inflation-linked leases [5] Group 3: Future Outlook - W.P. Carey expects to invest between $1.25 billion and $1.75 billion this year, with a strong liquidity position to capitalize on new opportunities [8] - The company anticipates higher AFFO in the second half of the year as it benefits from rent growth and new property additions, which should support dividend rebuilding [9]