W P Carey (WPC) Stock

W. P. Carey, a prominent real estate investment trust (REIT), faced criticism from investors after increasing and then rapidly reducing its dividend to $0.86 in late 2023. Although the company has faced challenges recently, it may still provide opportunities for long-term gains if investors can handle short-term fluctuations and uncertainties in management. Since February, the stock has not performed well, remaining flat while the S&P 500 has increased by 21.28%.

W. P. Carey has a varied portfolio with a wide range of tenants, long lease agreements, and rent increases that protect against inflation, which helps maintain steady cash flow. The company has a strong financial position and careful borrowing practices, even with a significant amount of debt due in 2026. Current trends in logistics, like automation and quick delivery services, put W. P. Carey in a good position to take advantage of the rising need for industrial and warehouse properties.

W. P. Carey has seen a 12% drop in value this year, but it has finished restructuring its portfolio. I had earlier suggested WPC as a strong buy because of its effective restructuring, low valuation, and growth potential in industrial and warehouse properties. With two quarters of adjusted FFO and four quarters of increasing dividends, the company is ready for significant growth.

W. P. Carey (WPC 2.10%) has a notable history of paying dividends. This real estate investment trust (REIT) managed to increase its dividends consistently for 25 years until the previous year.

WPC's strong performance in FQ3'24 looks very encouraging, with management suggesting further growth in FQ4'24. The REIT's consistent ABR growth, high occupancy rate of 98.8%, and favorable re-leasing rates demonstrate effective management and potential for growth in FY2025. Currently, WPC's low valuations, with a FWD Price/AFFO of 11.92x, have led to higher dividend yields compared to its historical averages and other REITs.

NEW YORK, Dec. 12, 2024 /PRNewswire/ -- W. P. Carey Inc. (W.

Sometimes you need to be honest about what you observe: 2024 was a really bad year for W.P. Carey (WPC -1.20%).

W. P. Carey's growth is likely to speed up after leaving the office business. The company is anticipated to experience slow growth again and increase its annual dividends. The current high dividend yield shows that the market is being careful, but this caution is expected to lessen over time.

Dividend investors were surprised when W.P. Carey (WPC 0.44%) revealed it would reduce its dividend in late 2023.