Should You Buy W. P. Carey While It's Below $60?

Core Viewpoint - W. P. Carey is currently trading below $60 per share, which raises questions about its investment attractiveness given its recent performance and strategic shifts [1] Financial Performance - W. P. Carey reported a 9.3% decline in adjusted funds from operations (FFO) to $4.70 per share for the full year of 2024, primarily due to asset sales [2] - The REIT sold $1.2 billion in properties last year, including a self-storage portfolio and a portion of its office sector [3] - In contrast, the REIT closed $1.6 billion in new investment deals in 2024, with a record quarterly volume of $841.3 million in the fourth quarter, leading to a 1.7% increase in adjusted FFO for that quarter [4] Investment Strategy - W. P. Carey plans to invest an additional $1 billion to $1.5 billion into new properties this year, funded by cash from prior asset sales and expected additional property sales of $500 million to $1 billion [5] - The REIT anticipates adjusted FFO growth to a range of $4.82 to $4.92 per share this year, representing an increase of over 3.5% at the midpoint [5] Valuation and Dividend Yield - The current stock price translates to a valuation of approximately 12.3 times its adjusted FFO, which is attractive compared to other REITs, such as retail REITs trading at 13.4 times [7] - W. P. Carey offers a dividend yield of 6%, higher than peers like Agree Realty and Stag Industrial, which both yield 4.3% [8] - The REIT has consistently raised its dividend since a reset in late 2023, with future growth tied to the increase in FFO [9] Market Position - Despite recent challenges, W. P. Carey’s stock is recovering and remains relatively cheaper than its net-lease peers, making it an appealing option for investors seeking a steady income stream [10]