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

W.P. Carey's "strategic plan" is just a stupid plan to cut the dividend
Creating a new REIT will waste $57 million in fees and raise costs
The assets being spun off into the new REIT are low quality
There was no need to cut WPC's dividend - it was covered
Dumping office assets would've only modestly reduced dividend coverage
Shareholders don't get to vote on this value-destructive plan
WPC's share price has plunged since announcing the plan

seekingalpha.com

Relevant topic timeline:

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.

9/21/2023

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

W. P. Carey Inc. has announced plans to spin off 59 office properties into a separate publicly-traded REIT called Net Lease Office Properties (NLOP) and implement an asset sale program to dispose of the remaining 87 office properties by January 2024. These strategic moves are expected to enhance W. P. Carey's growth profile, improve its earnings and cash flows, and increase its overall portfolio quality.

9/21/2023

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

Real estate investor W.P. Carey is exiting the office real estate market due to decreased demand caused by the rise in remote work during the pandemic, with plans to spin off some properties and sell the rest to lower costs and create long-term value for shareholders.

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.

9/26/2023

W. P. Carey Slashes Dividend by 20%, Betraying Income Investors Who Valued Its Payouts

W.P. Carey's decision to cut its dividend and exit its office properties has led to a loss of trust from income investors and raises doubts about the quality of the company's remaining portfolio.

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Posted 9/25/2023, 9:54:45 PM

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

W.P. Carey's "strategic plan" is just a stupid plan to cut the dividend
Creating a new REIT will waste $57 million in fees and raise costs
The assets being spun off into the new REIT are low quality
There was no need to cut WPC's dividend - it was covered
Dumping office assets would've only modestly reduced dividend coverage
Shareholders don't get to vote on this value-destructive plan
WPC's share price has plunged since announcing the plan

seekingalpha.com

Relevant topic timeline:

9/21/2023

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

9/21/2023

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

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

9/26/2023

W. P. Carey Slashes Dividend by 20%, Betraying Income Investors Who Valued Its Payouts

W.P. Carey's decision to cut its dividend and exit its office properties has led to a loss of trust from income investors and raises doubts about the quality of the company's remaining portfolio.