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It is recommended that you should always consider visiting a financial advisor for independent financial advice before making investment decisions.
I do not work in the financial industry, so just because I write about it, doesn’t mean you should own it. So, consult with a financial advisor and do your due diligence, RESEARCH!
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For this week’s REIT post, I am taking a quick look at W.P. Carey Inc. (NHYSE: WPC).
W.P. Carey Inc. was found in 1973 by Wm. Polk Carey. Wm. Polk Carey was born an entrepreneur.
As a child, he sold soda to his neighbors and making his own writing ink in his basement.
As a freshman at Princeton University, seeing schoolmates not have a small dorm refrigerator, he invested in many of them and leased them to his schoolmates for a free. By his sophomore year, he made $10,000.
And in 1973, W.P. Carey & Co Inc. was born, pioneering the concept of pooled net leased commercial real estate assets for individual investors.
The company has a long history of providing customized capital solutions to publicly-traded and privately-held companies, developers, private-equity firms and their portfolio companies.
By 1999, the company expanded top Europe and in 2012, the company is converted into a REIT.
Currently, W.P. Carey Inc. has 1,261 net lease properties, 146 million total square feet, an annualized base rent of $1.2 billion, an occupancy rate of 98.3%, 351 tenants and 99% leases with rent escalations.
The company has a diversification of 62.4% in the United States, 35.6% in Europe and 2% in Canada, Mexico and Japan.
24.9% of their properties are in Industrial, 22.2% in warehouse, 22.1% in office space, 17.7% in retail, 5.0% in Self-Storage and 8.1% in other areas.
There top 10 tenants are:
- U-Haul International
- Hellweg
- State of Andalucia
- Metro Cash & Carry
- Pendragon PLC
- Extra Space Storage, Inc.
- Advance Auto Parts, Inc.
- Marriott International, Inc.
- Nord Anglia Education, Inc.
- Forterra, Inc.
Currently, the closing price as of June 18th was $75.81. The company’s market cap is $14.0 billion and an enterprise value of $20.3 billion. There are 184.9 million shares outstanding and 55% of their shares are held by institutions.
Schwab Equity Rating has it at a grade of C, while Ned Davis Research has the REIT on Neutral and CFRA and Reuters Research Average Rating set at Hold.
In terms of insider stock purchases or sales, for 2020, a total of 42,310 shares were purchased by Director Mark A Alexander, CEO Jason E Fox, Managing Director Gino M. Sabtini and President John J. Park and a few more Directors.
As you can see from their chart, W.P. Carey Inc. has gradually went up in price and while their price per share did go down to $50 during the Pandemic, the stock is at $75.81 and on its way back to hopefully going back up to $90.
Their dividend payment has increased every year since 2013 and even during 2020 (Pandemic), the dividend went up to $4.17 and went up to $4.20 annually for 2021, with a quarterly dividend of $1.05. The dividend yield is 5.54% and it’s no doubt a top performing REIT.
The company’s balance sheet is very conservative and I’m liking what I have seen with this REIT in terms of performance and overall portfolio. And with its increased in dividend payments, its conservative stance in the market and its solid 5%+ yield, W.P. Carey Inc. is no doubt worth checking out!
As always, perform your due diligence and do a lot of research before investing. Talk to a financial advisor and find out if W.P. Carey Inc. (NYSE: WPC). would be a perfect investment for you.
