PUGUN SJ
Article Thesis
W. P. Carey Inc. (NYSE:WPC) is a high-quality real estate investment trust, or REIT, with a positive track record. The company has become a Dividend Aristocrat over the last year, but that status will be pretty short-lived: The company announced a strategic repositioning including the spin-off of some office properties, and in the same presentation/release, the company stated that the dividend would be “reset” to a lower level. While the dividend yield should still be attractive going forward, the dividend growth track record will be destroyed — investors won’t like that.
Getting Rid Of Office Properties
W. P. Carey is a real estate investment trust that invests in triple-net leased properties. These are oftentimes acquired in sale-leaseback transactions and have oftentimes very long lease terms and attractive escalators, in many cases inflation-linked…
