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NEW YORK - W. P. Carey Inc. (NYSE:WPC), a prominent net lease real estate investment trust (REIT) with a market capitalization of $13.66 billion, has announced key highlights from its 2024 performance, signaling a robust foundation for future growth. The company, known for its investments in single-tenant industrial, warehouse, and retail properties, has successfully completed its office exit strategy, which has established a new baseline for Adjusted Funds From Operations (AFFO), aiming to drive sustainable growth in earnings and dividends for its shareholders. According to InvestingPro data, WPC has maintained dividend payments for 28 consecutive years, demonstrating its commitment to shareholder returns.
Throughout 2024, W. P. Carey completed investments totaling $1.6 billion, marking a record quarter of activity and maintaining a focus on properties both in the U.S. and Europe. The company has reported a year-over-year contractual same-store rent growth of 2.6%, which stands out in the net lease sector, even amidst lower inflation rates. This performance is attributed to the strength of the company’s fixed rent bumps and its focus on sale-leasebacks. The strategy has proven effective, with InvestingPro reporting an impressive gross profit margin of 92.35% and a YTD price return of 14.56%.
The company’s CEO, Jason Fox, expressed optimism about the future, citing W. P. Carey’s simpler, more dynamic business model, strong balance sheet, and access to multiple forms of capital. This assessment is supported by InvestingPro’s Financial Health Score of 2.96 (GOOD) and a healthy current ratio of 1.14. Fox highlighted the exceptional rent growth and a proven investment approach as foundations for sustainable growth and long-term value creation for shareholders, which currently enjoy a 5.7% dividend yield.
W. P. Carey’s portfolio as of December 31, 2024, includes 1,555 net lease properties covering approximately 176 million square feet and 78 self-storage operating properties. The company’s strategic focus remains on investing primarily in single-tenant properties located in the U.S. and Northern and Western Europe, under long-term net leases with built-in rent escalations.
The company has also maintained a strong, conservative balance sheet, with successful capital markets execution supporting its investment activity. Bonds have been issued at attractive pricing relative to the yields achieved on new investments. The company’s stock is currently trading near its 52-week high, reflecting investor confidence in its strategy and execution.
The information is based on a press release statement, which also contains forward-looking statements subject to various risks and uncertainties. Factors such as fluctuating interest rates, the impact of inflation, and geopolitical crises could materially affect the company’s future results, performance, or achievements. Additional risk factors are discussed in W. P. Carey’s filings with the Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the fiscal year ended December 31, 2024.
In other recent news, W. P. Carey Inc. reported its fourth-quarter 2024 earnings, revealing an earnings per share (EPS) of $0.21, which missed the forecasted $0.54. However, the company’s revenue of $403.65 million exceeded expectations of $385.18 million, highlighting its capacity for generating higher-than-expected revenue. Additionally, W. P. Carey announced an increase in its quarterly cash dividend to $0.890 per share, reflecting an annualized rate of $3.56 per share. This dividend increase underscores the company’s commitment to returning value to its shareholders.
Further developments include analyst actions, with BMO Capital Markets upgrading W. P. Carey shares from Market Perform to Outperform, raising the price target to $67.00, citing improved growth prospects and strategic divestments. Scotiabank adjusted W. P. Carey’s stock target to $63.00, maintaining a Sector Perform rating, while Evercore ISI raised its target to $64.00, keeping an In-Line rating. Analysts highlighted the company’s strategic initiatives, such as its focus on recycling its Operating Self-Storage portfolio and its expansion into U.S. retail and data centers.
W. P. Carey’s strategic decisions, including exiting the office sector and concentrating on retail and data centers, reflect its adaptability in a competitive market. The company also achieved a portfolio occupancy rate of 98.6%, demonstrating operational efficiency. With a projected 2025 AFFO growth of 3.6% at the midpoint, W. P. Carey plans to invest $1 billion to $1.5 billion in 2025, emphasizing its focus on expanding in key sectors.
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