W. P. Carey: Portfolio Transformation Is Complete - Divergence Incoming

Jun. 22, 2025 7:44 AM ETW. P. Carey Inc. (WPC) StockWPC22 Comments
(8min)

Summary

  • W. P. Carey has transformed its portfolio, now boasting high-quality industrial and warehouse assets with no office exposure, which the market underappreciates.
  • The company’s inflation-linked lease escalators and strong rent recapture rates position it for above-peer growth once capital recycling moderates.
  • Despite recent underperformance and slow AFFO growth, the 5.7% dividend yield is attractive given the improved asset quality and growth outlook.
  • I reiterate my buy rating, expecting multiple expansion as WPC’s portfolio shift and resilience drive stronger long-term performance.
  • Looking for a portfolio of ideas like this one? Members of Best Of Breed Growth Stocks get exclusive access to our subscriber-only portfolios. Learn More »

Woman in an empty warehouse by day

timandtim/DigitalVision via Getty Images

W. P. Carey (WPC) has gone nowhere for more than a decade, which might make some investors uninterested in the stock. That would be a mistake, however, as the company has undergone a dramatic transformation with a

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This article was written by

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Julian Lin is a financial analyst. He finds undervalued companies with secular growth that appreciate over time. His approach is to look for companies with strong balance sheets and management teams in sectors with long growth runways.

Julian is the leader of the investing group Best Of Breed Growth Stocks where he only shares positions in stocks which have a large probability of delivering large alpha relative to the S&P 500. He also combines growth-oriented principles with strict valuation hurdles to add an additional layer to the conventional margin of safety. Features include: exclusive access to Julian's highest conviction picks, full stock research reports, real-time trade alerts, macro market analysis, individual industry reports, a filtered watchlist, and community chat with access to Julian 24/7. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of WPC, O, PLD either through stock ownership, options, or other derivatives. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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