W. P. Carey(US:WPC) The Motley Fool·2025-10-08 00:11Core Viewpoint - W.P. Carey is a real estate investment trust (REIT) that offers a high-yielding and steadily growing dividend, making it an attractive option for passive income investors [1][10]. Company Overview - W.P. Carey owns a diversified portfolio of high-quality commercial real estate across North America and Europe, focusing on single-tenant industrial, warehouse, retail, and other properties secured by long-term net leases with built-in rent escalations [3][4]. Financial Performance - The REIT expects to produce adjusted funds from operations (FFO) between $4.87 and $4.95 per share this year, which comfortably covers its current annual dividend of $3.64 per share, resulting in a dividend yield of 5.2% based on a stock price below $70 [4][5]. Growth Drivers - W.P. Carey benefits from built-in rental escalation clauses in 50% of its leases, which are primarily linked to inflation, contributing to a same-store annual base rent growth of 2% to 4% [6]. - The company plans to invest between $1.4 billion and $1.8 billion this year, having already secured $1.3 billion in new investments, mainly in single-tenant industrial properties [7]. - A capital recycling strategy has been employed to fund new investments, with the company selling $875 million in properties and aiming for $900 million to $1.3 billion in total sales this year [8]. Dividend Growth - W.P. Carey has increased its dividend by 4% over the past 12 months, supported by a projected 4.5% rise in adjusted FFO per share this year, indicating confidence in continued dividend increases backed by rent growth and property acquisitions [9].