W. P. Carey: CPA:18 Merger Strengthens Bull Thesis

May 31, 2022 3:54 PM ETW. P. Carey Inc. (WPC)21 Comments

Summary

  • The CPA:18 merger is the most impactful announcement in the first quarter for W. P. Carey and paves the way for future growth.
  • The total merger is valued at around a sizable $2.7 billion.
  • However, the balance sheet and capital structure remain conservative and well-positioned.
  • I view it as a very positive move both in the short and long term.
  • It substantially simplifies the business model and enables a sharper focus on the core strength.
  • Looking for more investing ideas like this one? Get them exclusively at Envision Early Retirement. Learn More »

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Thesis

W. P. Carey (NYSE:WPC) reported strong earnings results for Q1 2022 on April 29, 2022. Total revenue came in at $348.44M, representing an 11.98% increase YoY and beat expectations by $7.48M. Total AFFO came in at $258.8 million or $1.35 per diluted share. Notably, thanks

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WPC 2022 Q1 Earnings Report

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WPC 2022 Q1 Earnings Report

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** Disclosure** I am associated with Envision Research

I am an economist by training, with a focus on financial economics. After I completed my PhD, I have been professionally working as a quantitative modeler, with a focus on the mortgage market, commercial market, and the banking industry for more than a decade. And at the same time, I have been managing several investment accounts for my family for the past 15 years, going through two market crashes and an incredible long bull market in between. 

My writing interests are mostly asset allocation and ETFs, particularly those related to the overall market, bonds, banking and financial sectors, and housing markets. I have been a long time SA reader, and am excited to become a more active participator in this wonderful community! 


Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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