NEW YORK - W. P. Carey Inc. (NYSE: NYSE:WPC), a global net lease real estate investment trust (REIT), has announced an increase in its quarterly cash dividend. The company's Board of Directors has declared the dividend to be set at $0.870 per share, which corresponds to an annualized rate of $3.48 per share.
This new dividend is scheduled to be distributed on July 15, 2024, to shareholders who are on record as of June 28, 2024. The adjustment in the dividend reflects the company's financial strategies and commitment to delivering shareholder value.
W. P. Carey is recognized as one of the largest net lease REITs, boasting a diversified portfolio that spans across high-quality commercial real estate. As of March 31, 2024, the company's portfolio includes 1,282 net lease properties covering an approximate 168 million square feet, in addition to 89 self-storage operating properties.
The company's strategic investments are primarily concentrated in single-tenant industrial, warehouse, and retail properties. These investments are geographically spread across the U.S. and parts of Northern and Western Europe, emphasizing long-term net leases that include built-in rent escalations.
W. P. Carey operates from its offices located in New York, London, Amsterdam, and Dallas, underscoring its global footprint and operational reach in the real estate market.
The announcement of the dividend increase is based on a press release statement issued by W. P. Carey Inc. It reflects the company's ongoing financial performance and its approach to capital distribution to its investors.
In other recent news, W. P. Carey & Co. disclosed its first-quarter earnings for 2024, revealing strategic industrial property investments and a robust liquidity position. The company completed investments totaling $375 million and reported a pipeline of over $500 million, with $300 million expected to close soon. Despite a decline in Adjusted Funds From Operations (AFFO) per share to $1.14, W. P. Carey remains on track to meet its full-year AFFO guidance.
UBS has set a neutral rating on W. P. Carey shares with a $57 price target, based on anticipated growth challenges due to current high interest rates. Meanwhile, RBC Capital Markets adjusted its outlook on W. P. Carey, reducing the price target to $63 from the previous $65 while maintaining an Outperform rating. The adjustment follows the company's first-quarter 2024 performance, which did not meet expectations.
These are recent developments for W. P. Carey, a company known for its diversified portfolio of properties under long-term net leases. Despite some near-term benefits from its nearly $1 billion in cash and proceeds from 1031 exchanges, analysts from UBS and RBC Capital have expressed caution regarding the company's ability to navigate the current economic environment and manage its portfolio effectively.
InvestingPro Insights
W. P. Carey Inc. (NYSE: WPC) has recently made headlines with its increased quarterly cash dividend, signaling confidence in its financial performance and dedication to shareholder returns. The latest metrics from InvestingPro provide a deeper look into the company's financial health and market position.
The company's market capitalization stands at a robust $12.24 billion, reflecting its significant presence in the REIT sector. An impressive gross profit margin of 92.06% over the last twelve months as of Q1 2024 showcases W. P. Carey's efficiency in generating revenue over its direct costs. Furthermore, the company's commitment to rewarding its shareholders is evident through its maintained dividend payments for 27 consecutive years, a testament to its stable financial policies and long-term strategy.
With a P/E ratio of 21.16 and an adjusted P/E ratio of 23.99 for the last twelve months as of Q1 2024, the valuation implies a strong free cash flow yield, which is an attractive aspect for investors seeking value. Additionally, the company's dividend yield as of March 2024 stands at 6.21%, a figure that is compelling for income-focused investors, despite a decrease in dividend growth over the last twelve months.
For readers looking to delve deeper into the financial prospects of W. P. Carey, there are additional InvestingPro Tips available that could provide valuable insights. Analysts predict the company will be profitable this year, and it has indeed been profitable over the last twelve months. To explore these tips further and discover more about W. P. Carey's financial outlook, interested individuals can visit InvestingPro's dedicated page for the company.
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