W.P. Carey to Spin Off Office Assets into New REIT and Sell Other Properties

W.P. Carey plans to exit office assets by spinning off 59 properties into a new REIT and selling 87 other office properties.
The spin-off of properties into the new REIT Net Lease Office Properties (NLOP) is expected to close around November 1, 2023.
NLOP will pursue a plan to realize value by strategically managing and selling its properties over time.
The office sale program aims to sell 87 other office properties, representing 5% of W.P. Carey's ABR, by January 2024.
Exiting office assets is intended to improve W.P. Carey's portfolio quality, earnings stability, growth profile and cost of capital.

prnewswire.com

Relevant topic timeline:

8/23/2023

W. P. Carey Stock: Has The Market Lost Its Mind? No, The Market Is Right (NYSE:WPC)

The recent collapse in W. P. Carey Inc. (NYSE:WPC) stock has led to a downward de-rating due to concerns about the company's growth prospects, debt maturity profile, and rising yields, although it may present an attractive entry level for investors.

9/21/2023

W.P. Carey Exiting Office Sector, Spinning Off and Selling Office Properties into New REIT

Real estate investment trust (REIT) W.P. Carey plans to exit the office sector by selling over half of its office properties and spinning off the rest into a separate publicly traded REIT, in a move aimed at improving its growth profile and capital costs amid declining office occupancy rates.

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W.P. Carey Exits Office Properties as Remote Work Reduces Demand

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9/21/2023

W.P. Carey Sells Office Assets, Reduces Debt and Dividend to Refocus on Faster-Growing Industrial Properties

Real estate investment trust W. P. Carey Inc. plans to spin-off its office properties and "reset" the dividend to a lower level, damaging its dividend growth track record but still offering a attractive dividend yield and potential for improved growth in the future.

9/25/2023

W.P. Carey Rental Growth Soars Over 4% in Q2 as Inflation-Linked Leases Pay Off

W.P. Carey, a net lease real estate investment trust, has successfully mitigated the impact of inflation on its rental income through its inclusion of inflation-linked rent escalators in the majority of its leases, resulting in strong same-store rental growth even during periods of rapid inflation.

9/25/2023

W.P. Carey Stock Drops on Poorly-Communicated Spinoff, But Upside Remains for Long-Term Investors

This article mentions the stock of W. P. Carey (NYSE:WPC). The author suggests that the investors should buy or hold the stock, as they believe the spinoff of the office assets presents an opportunistic discount. The author's core argument is that the market has undervalued WPC's assets, particularly its office portfolio, and that the spinoff will force the market to value each asset individually, resulting in a higher overall fair value for the company. The article also discusses the impact of the spinoff on cashflows, growth trajectory, and dividend policy. Key information and data include the AFFO/share runrate, the fair value of WPC and the spinoff, the impact of the spinoff on AFFO, and the planned asset sales.

9/25/2023

W.P. Carey's New Strategic Plan Draws Criticism for Dividend Cut, High Costs

W.P. Carey's plan to spin off its office properties into a new REIT, Net Lease Office Properties (NLOP), and cut its dividend is a shortsighted and unnecessary move that will result in value destruction for shareholders.

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Posted 9/21/2023, 11:30:00 AM

W.P. Carey to Spin Off Office Assets into New REIT and Sell Other Properties

W.P. Carey plans to exit office assets by spinning off 59 properties into a new REIT and selling 87 other office properties.
The spin-off of properties into the new REIT Net Lease Office Properties (NLOP) is expected to close around November 1, 2023.
NLOP will pursue a plan to realize value by strategically managing and selling its properties over time.
The office sale program aims to sell 87 other office properties, representing 5% of W.P. Carey's ABR, by January 2024.
Exiting office assets is intended to improve W.P. Carey's portfolio quality, earnings stability, growth profile and cost of capital.

prnewswire.com

Relevant topic timeline:

8/23/2023

W. P. Carey Stock: Has The Market Lost Its Mind? No, The Market Is Right (NYSE:WPC)

9/21/2023

W.P. Carey Exiting Office Sector, Spinning Off and Selling Office Properties into New REIT

9/21/2023

W.P. Carey Exits Office Properties as Remote Work Reduces Demand

9/21/2023

W.P. Carey Sells Office Assets, Reduces Debt and Dividend to Refocus on Faster-Growing Industrial Properties

9/25/2023

W.P. Carey Rental Growth Soars Over 4% in Q2 as Inflation-Linked Leases Pay Off

9/25/2023

W.P. Carey Stock Drops on Poorly-Communicated Spinoff, But Upside Remains for Long-Term Investors

9/25/2023

W.P. Carey's New Strategic Plan Draws Criticism for Dividend Cut, High Costs