W.P. Carey: Who's Gonna Carey The Boats?

May 07, 2024 11:29 AM ETW. P. Carey Inc. (WPC) StockWPC12 Comments
Empyrean Research
630 Followers

Summary

  • We had initially rated WPC a Hold due to a moderately unattractive valuation. Since that report, the shares are down ~8%.
  • WPC's active disposition program, including its office exit, has resulted in a significant net shrinkage of the portfolio, making this quarter difficult to compare with prior quarters.
  • Looking through the noise, we see some positive developments in the core industrial, warehouse, and retail portfolios, with leasing spreads of +100%.
  • We have revised our NAV estimate up ~7% and upgrade to Buy on the now attractive margin of safety.

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Summary

Our initial report on W.P. Carey rated the shares a Hold due to its valuation, which we found did not provide an attractive margin of safety. Since that report, the shares have traded down ~8%, and we have revised our NAV estimate up ~7% based

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