BofA and JPMorgan Jointly Price Deal at $72.00
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy WPC?
The deal priced at low end of $72.00-$73.50 target range. BofA and JPMorgan are acting as joint book running managers for the offering.
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Analyst Views on WPC
Wall Street analysts forecast WPC stock price to fall
8 Analyst Rating
2 Buy
4 Hold
2 Sell
Hold
Current: 71.390
Low
67.00
Averages
70.71
High
78.00
Current: 71.390
Low
67.00
Averages
70.71
High
78.00
About WPC
W. P. Carey Inc. is a net lease real estate investment trust. The Company owns a diversified portfolio of commercial real estate properties, which includes 1,662 net lease properties, covering approximately 183 million square feet. The Company is focused on investing primarily in single-tenant, industrial, warehouse and retail properties located in the United States and Europe, under long-term net leases with built-in rent escalations. In addition, the Company owns approximately 42 self-storage operating properties, four hotel operating properties and one student housing operating property, totaling approximately 3.4 million square feet. It also owns 2800 Skyline, a 756,000-square-foot industrial site in Mesquite, Texas.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Medical Properties Trust Faces High Risk-Reward Profile
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- Dividend Cuts Impact: The company's stock has fallen about 75% over the past five years due to excessive debt leading to tenant payment issues; although the dividend was recently increased, its financial health remains a concern.
- High Debt Levels: While Medical Properties Trust's debt levels have been trending down, they are still high compared to other attractive REITs like Realty Income and W.P. Carey, which yield around 4.9%, raising doubts about its future stability.
- Balancing Risk and Reward: Although Medical Properties Trust may have turned a corner, its dividend history and high leverage warrant caution, leading investors to potentially favor more stable yield stocks like Realty Income and W.P. Carey.
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W. P. Carey Prices Public Offering of 6M Shares
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- Underwriter Arrangement: BofA Securities and J.P. Morgan are acting as joint book-running managers, with underwriters holding a 30-day option to purchase an additional 900,000 shares, which further increases market interest in the stock.
- Use of Proceeds: The company plans to use the net proceeds from the offering, upon settlement of the forward agreements, to fund future investments, repay debt—including borrowings under its revolving credit facility—and for general corporate purposes, demonstrating its prudent financial management strategy.
- Investment Goals: W. P. Carey also aims for an investment volume target of $1.25 billion to $1.75 billion in 2026, advancing its strategies in retail, industrial, and tenant solutions, indicating confidence in future growth prospects.
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W. P. Carey Inc. Prices Public Offering of 6 Million Shares
- Offering Size and Proceeds: W. P. Carey Inc. announced the pricing of a public offering of 6 million shares at $432 million in gross proceeds, reflecting strong demand and the company's robust capital market capabilities.
- Underwriter Selection: BofA Securities and J.P. Morgan acted as joint book-running managers for the offering, indicating strategic considerations in underwriter selection to ensure a smooth issuance process.
- Planned Use of Proceeds: The company intends to utilize the net proceeds from the offering for future investments, debt repayment, and general corporate purposes, demonstrating its focus on financial stability and strategic growth initiatives.
- Forward Sale Agreements: The company entered into forward sale agreements with BofA and JPMorgan, expected to settle within 24 months, showcasing its agility in responding to market dynamics and optimizing capital structure.
See More
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- Underwriter Selection: BofA Securities and J.P. Morgan acted as joint book-running managers for the offering, reflecting the company's market credibility and influence in selecting underwriters, which may attract more investor interest.
- Use of Proceeds: The company intends to use the net proceeds from the offering for future investments, debt repayment, and general corporate purposes, a strategy that will help optimize its capital structure and support long-term growth.
- Forward Sale Agreements: The forward sale agreements with BofA and J.P. Morgan are expected to settle within 24 months, demonstrating the company's keen awareness of market dynamics and its ability to navigate uncertainties effectively.
See More
W. P. Carey Prices €1 Billion Senior Notes Offering
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- Tranche Structure: The offering consists of two tranches: €500 million of 3.250% Senior Notes due 2031 priced at 99.249% and €500 million of 3.750% Senior Notes due 2035 priced at 98.500%, reflecting market confidence in the company's debt.
- Interest Payment Schedule: Interest on the 2031 Notes will be paid annually on October 2, starting in 2026, while the 2035 Notes will pay interest annually on May 10, also beginning in 2026, ensuring stable future cash flows for the company.
- Use of Proceeds: The company intends to use the net proceeds from the offering to repay €500 million of its 2.250% Senior Notes due April 2026 and for general corporate purposes, highlighting its focus on optimizing capital structure.
See More
W. P. Carey Inc. Prices €1 Billion Senior Notes Offering
- Bond Offering Size: W. P. Carey Inc. announced the pricing of €1 billion in senior unsecured notes with a weighted-average coupon of 3.500% and a term of 7.4 years, expected to settle on February 24, 2026, demonstrating the company's strong capital market financing capabilities.
- Clear Use of Proceeds: The net proceeds from this bond offering will be used to repay €500 million of 2.250% senior notes and for general corporate purposes, including potential investments and repayment of unsecured revolving credit, indicating the company's strategic intent to optimize its capital structure.
- High Market Recognition: Applications for the notes have been submitted to the Irish Stock Exchange, with expectations for inclusion in the official list and trading on the Global Exchange Market, reflecting market confidence in the company's creditworthiness and its influence in the European market.
- Strong Underwriter Lineup: The involvement of J.P. Morgan, Barclays, BNP PARIBAS, and Wells Fargo as joint book-running managers for the offering highlights strong demand for the notes and investor confidence in the company’s financial stability.
See More
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- Attractive Yield but High Risk: Medical Properties Trust offers a 6.6% yield, significantly higher than the S&P 500's 1.2% and the average REIT's 3.8%, yet this high yield reflects the company's history of two dividend cuts, prompting investors to assess risks carefully.
- Dividend Cuts Impact: The company's stock has fallen about 75% over the past five years due to excessive debt leading to tenant payment issues; although the dividend was recently increased, its financial health remains a concern.
- High Debt Levels: While Medical Properties Trust's debt levels have been trending down, they are still high compared to other attractive REITs like Realty Income and W.P. Carey, which yield around 4.9%, raising doubts about its future stability.
- Balancing Risk and Reward: Although Medical Properties Trust may have turned a corner, its dividend history and high leverage warrant caution, leading investors to potentially favor more stable yield stocks like Realty Income and W.P. Carey.
See More
W. P. Carey Prices Public Offering of 6M Shares
- Offering Size: W. P. Carey has priced a public offering of 6 million shares at $432 million, reflecting strong demand in the capital markets and expected to enhance the company's financial flexibility.
- Underwriter Arrangement: BofA Securities and J.P. Morgan are acting as joint book-running managers, with underwriters holding a 30-day option to purchase an additional 900,000 shares, which further increases market interest in the stock.
- Use of Proceeds: The company plans to use the net proceeds from the offering, upon settlement of the forward agreements, to fund future investments, repay debt—including borrowings under its revolving credit facility—and for general corporate purposes, demonstrating its prudent financial management strategy.
- Investment Goals: W. P. Carey also aims for an investment volume target of $1.25 billion to $1.75 billion in 2026, advancing its strategies in retail, industrial, and tenant solutions, indicating confidence in future growth prospects.
See More
W. P. Carey Inc. Prices Public Offering of 6 Million Shares
- Offering Size and Proceeds: W. P. Carey Inc. announced the pricing of a public offering of 6 million shares at $432 million in gross proceeds, reflecting strong demand and the company's robust capital market capabilities.
- Underwriter Selection: BofA Securities and J.P. Morgan acted as joint book-running managers for the offering, indicating strategic considerations in underwriter selection to ensure a smooth issuance process.
- Planned Use of Proceeds: The company intends to utilize the net proceeds from the offering for future investments, debt repayment, and general corporate purposes, demonstrating its focus on financial stability and strategic growth initiatives.
- Forward Sale Agreements: The company entered into forward sale agreements with BofA and JPMorgan, expected to settle within 24 months, showcasing its agility in responding to market dynamics and optimizing capital structure.
See More
W. P. Carey Inc. Prices Public Offering of 6 Million Shares
- Offering Size: W. P. Carey Inc. announced the pricing of a public offering of 6 million shares at a total gross proceeds of $432 million, indicating strong demand in the capital markets and expected to enhance financial flexibility.
- Underwriter Selection: BofA Securities and J.P. Morgan acted as joint book-running managers for the offering, reflecting the company's market credibility and influence in selecting underwriters, which may attract more investor interest.
- Use of Proceeds: The company intends to use the net proceeds from the offering for future investments, debt repayment, and general corporate purposes, a strategy that will help optimize its capital structure and support long-term growth.
- Forward Sale Agreements: The forward sale agreements with BofA and J.P. Morgan are expected to settle within 24 months, demonstrating the company's keen awareness of market dynamics and its ability to navigate uncertainties effectively.
See More
W. P. Carey Prices €1 Billion Senior Notes Offering
- Bond Offering Size: W. P. Carey announced a €1 billion public offering of senior unsecured notes with a weighted-average coupon of 3.500% and a term of 7.4 years, demonstrating strong capital market financing capabilities.
- Tranche Structure: The offering consists of two tranches: €500 million of 3.250% Senior Notes due 2031 priced at 99.249% and €500 million of 3.750% Senior Notes due 2035 priced at 98.500%, reflecting market confidence in the company's debt.
- Interest Payment Schedule: Interest on the 2031 Notes will be paid annually on October 2, starting in 2026, while the 2035 Notes will pay interest annually on May 10, also beginning in 2026, ensuring stable future cash flows for the company.
- Use of Proceeds: The company intends to use the net proceeds from the offering to repay €500 million of its 2.250% Senior Notes due April 2026 and for general corporate purposes, highlighting its focus on optimizing capital structure.
See More
W. P. Carey Inc. Prices €1 Billion Senior Notes Offering
- Bond Offering Size: W. P. Carey Inc. announced the pricing of €1 billion in senior unsecured notes with a weighted-average coupon of 3.500% and a term of 7.4 years, expected to settle on February 24, 2026, demonstrating the company's strong capital market financing capabilities.
- Clear Use of Proceeds: The net proceeds from this bond offering will be used to repay €500 million of 2.250% senior notes and for general corporate purposes, including potential investments and repayment of unsecured revolving credit, indicating the company's strategic intent to optimize its capital structure.
- High Market Recognition: Applications for the notes have been submitted to the Irish Stock Exchange, with expectations for inclusion in the official list and trading on the Global Exchange Market, reflecting market confidence in the company's creditworthiness and its influence in the European market.
- Strong Underwriter Lineup: The involvement of J.P. Morgan, Barclays, BNP PARIBAS, and Wells Fargo as joint book-running managers for the offering highlights strong demand for the notes and investor confidence in the company’s financial stability.
See More
