W.P. Carey Refocuses Portfolio, Boosts Growth Outlook After Office Struggles
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W.P. Carey has underperformed in recent years due to macroeconomic headwinds and its exposure to struggling office properties.
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The company is exiting the office market by selling or spinning off most of its office assets.
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This refocusing is expected to strengthen WPC's balance sheet, improve growth prospects in areas like warehouses, and provide capital to invest in new initiatives.
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Consensus forecasts 4% FFO growth per year through 2027 thanks to these catalysts. Valuation looks attractive at 11-12x forward FFO compared to sector median of 14x.
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The 7% dividend yield offers income and downside protection. The recent dividend increase also signals confidence in maintaining payouts.