W.P. Carey Shows Significant Recovery After Dividend Cut
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
0mins
Should l Buy WPC?
Source: Benzinga
- Dividend Cut Impact: In December 2023, W.P. Carey reduced its dividend from $1.071 to $0.860 per share, a 19.7% drop that prompted income investors to exit; however, the dividend has since increased for eight consecutive quarters, reaching $0.920 by December 2025, marking a 7% recovery from the post-cut low.
- Financial Metrics Improvement: As of Q3 2025, adjusted funds from operations (AFFO) stood at $1.25 per share, reflecting a 5.9% year-over-year increase, with a payout ratio of 73.0%, indicating the company can sustain modest dividend increases while maintaining financial stability, which boosts investor confidence.
- Portfolio Restructuring: W.P. Carey has completely exited its office portfolio, focusing on industrial, warehouse, and retail net lease properties, completing $1.5 billion in asset dispositions in 2025, including $785 million from self-storage sales, with proceeds funding a record $2.1 billion in new investments at an average initial cap rate of 7.6%.
- Leasing Stability: Although occupancy dipped to 97.0% at the end of the quarter from 98.2% in Q2 2025, management views this decline as temporary, supported by a weighted average lease term of 12.1 years, which provides visibility and supports the ongoing recovery of the dividend.
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Analyst Views on WPC
Wall Street analysts forecast WPC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for WPC is 70.71 USD with a low forecast of 67.00 USD and a high forecast of 78.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
2 Buy
4 Hold
2 Sell
Hold
Current: 71.380
Low
67.00
Averages
70.71
High
78.00
Current: 71.380
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.
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W.P. Carey Shows Significant Recovery After Dividend Cut
- Dividend Cut Impact: In December 2023, W.P. Carey reduced its dividend from $1.071 to $0.860 per share, a 19.7% drop that prompted income investors to exit; however, the dividend has since increased for eight consecutive quarters, reaching $0.920 by December 2025, marking a 7% recovery from the post-cut low.
- Financial Metrics Improvement: As of Q3 2025, adjusted funds from operations (AFFO) stood at $1.25 per share, reflecting a 5.9% year-over-year increase, with a payout ratio of 73.0%, indicating the company can sustain modest dividend increases while maintaining financial stability, which boosts investor confidence.
- Portfolio Restructuring: W.P. Carey has completely exited its office portfolio, focusing on industrial, warehouse, and retail net lease properties, completing $1.5 billion in asset dispositions in 2025, including $785 million from self-storage sales, with proceeds funding a record $2.1 billion in new investments at an average initial cap rate of 7.6%.
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See More
W. P. Carey Announces 2025 Dividend Tax Treatment
- Dividend Distribution Overview: W. P. Carey announced a total dividend of $0.92 per share for 2025, with $0.1369 allocated for tax treatment in 2025, reflecting the company's stable cash flow and shareholder return strategy.
- Tax Advisory Recommendation: The company encourages shareholders to consult personal tax advisors to ensure clarity on the specific tax treatment of W. P. Carey dividends, thereby mitigating potential tax risks.
- Portfolio Diversification: As of September 30, 2025, W. P. Carey holds 1,662 net lease properties covering approximately 183 million square feet, indicating its strong market position and investment appeal in the commercial real estate sector.
- Long-term Leasing Strategy: The company focuses on single-tenant industrial, warehouse, and retail properties in the U.S. and Europe, utilizing long-term net leases with built-in rent escalations, ensuring stable income streams and future growth potential.
See More
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- Dividend Distribution Overview: W. P. Carey announced a total dividend of $0.92 per share for 2025, with $0.1369 allocated for tax treatment in 2025, reflecting the company's stable cash flow and shareholder return strategy.
- Tax Consultation Advisory: The company encourages shareholders to consult their personal tax advisors to ensure a clear understanding of the specific tax treatment of W. P. Carey dividends, thereby mitigating potential tax risks.
- Portfolio Scale: As of September 30, 2025, W. P. Carey holds 1,662 net lease properties covering approximately 183 million square feet, indicating its strong market position and diversified investment strategy in commercial real estate.
- Long-term Leasing Strategy: The company focuses on single-tenant industrial, warehouse, and retail properties in the U.S. and Europe, utilizing long-term net lease agreements with built-in rent escalations, ensuring stability and growth potential for future revenues.
See More
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- Current Investor Sentiment: Investors are currently avoiding the real estate sector, indicating a lack of confidence in the market.
- Potential for Change: There is a possibility that investor interest in real estate may shift in the future.
See More
Three High-Yield Investments to Achieve Financial Independence
- Energy Investment: Energy Transfer currently boasts a dividend yield of approximately 7.3%, significantly higher than the S&P 500's 1.1%, meaning a $100 investment generates about $7.30 in distribution income, highlighting its strong performance in passive income generation.
- Stable Cash Flow Support: With 90% of its cash flow derived from fees and a conservative payout ratio of around 50%, Energy Transfer plans to invest $5 billion to $5.5 billion in expansion projects over the coming years to meet the growing demand for natural gas.
- ETF Investment Advantage: The Schwab U.S. Dividend Equity ETF offers a 12-month distribution yield of 3.8%, with its holdings averaging over 8% annual dividend growth in the past five years, providing investors with a steady income stream.
- REIT Investment Potential: W.P. Carey, as a real estate investment trust, invested a record $2.1 billion in new properties last year, primarily in warehouse and industrial buildings, and is expected to continue increasing its 5.2% dividend yield through rental growth and new investments.
See More
Energy Transfer Plans Annual Dividend Increase of 3% to 5%
- High-Yield Dividend Growth: Energy Transfer plans to increase its high-yield dividend by 3% to 5% annually, with a current yield of approximately 7.3%, significantly higher than the S&P 500's 1.1%, which is likely to attract more investors seeking passive income.
- Stable Cash Flow Support: The company generates 90% of its revenue from fees and maintains a conservative payout ratio of around 50%, enabling it to continue increasing dividends while planning to invest $5 billion to $5.5 billion in expansion projects over the coming years to meet rising natural gas demand.
- ETF Investment Opportunity: The Schwab U.S. Dividend Equity ETF offers a 12-month distribution yield of 3.8%, with its 100 high-quality dividend stocks averaging over 8% annual dividend growth over the past five years, providing investors with a steady income stream.
- REIT Advantages: W.P. Carey invested a record $2.1 billion in new properties last year, primarily in warehouse and industrial buildings, and increased its dividend by 4.5% last year due to rising rental income, showcasing its strong financial position and capacity for continued expansion.
See More
W.P. Carey Shows Significant Recovery After Dividend Cut
- Dividend Cut Impact: In December 2023, W.P. Carey reduced its dividend from $1.071 to $0.860 per share, a 19.7% drop that prompted income investors to exit; however, the dividend has since increased for eight consecutive quarters, reaching $0.920 by December 2025, marking a 7% recovery from the post-cut low.
- Financial Metrics Improvement: As of Q3 2025, adjusted funds from operations (AFFO) stood at $1.25 per share, reflecting a 5.9% year-over-year increase, with a payout ratio of 73.0%, indicating the company can sustain modest dividend increases while maintaining financial stability, which boosts investor confidence.
- Portfolio Restructuring: W.P. Carey has completely exited its office portfolio, focusing on industrial, warehouse, and retail net lease properties, completing $1.5 billion in asset dispositions in 2025, including $785 million from self-storage sales, with proceeds funding a record $2.1 billion in new investments at an average initial cap rate of 7.6%.
- Leasing Stability: Although occupancy dipped to 97.0% at the end of the quarter from 98.2% in Q2 2025, management views this decline as temporary, supported by a weighted average lease term of 12.1 years, which provides visibility and supports the ongoing recovery of the dividend.
See More
W. P. Carey Announces 2025 Dividend Tax Treatment
- Dividend Distribution Overview: W. P. Carey announced a total dividend of $0.92 per share for 2025, with $0.1369 allocated for tax treatment in 2025, reflecting the company's stable cash flow and shareholder return strategy.
- Tax Advisory Recommendation: The company encourages shareholders to consult personal tax advisors to ensure clarity on the specific tax treatment of W. P. Carey dividends, thereby mitigating potential tax risks.
- Portfolio Diversification: As of September 30, 2025, W. P. Carey holds 1,662 net lease properties covering approximately 183 million square feet, indicating its strong market position and investment appeal in the commercial real estate sector.
- Long-term Leasing Strategy: The company focuses on single-tenant industrial, warehouse, and retail properties in the U.S. and Europe, utilizing long-term net leases with built-in rent escalations, ensuring stable income streams and future growth potential.
See More
W. P. Carey Announces 2025 Dividend Tax Treatment
- Dividend Distribution Overview: W. P. Carey announced a total dividend of $0.92 per share for 2025, with $0.1369 allocated for tax treatment in 2025, reflecting the company's stable cash flow and shareholder return strategy.
- Tax Consultation Advisory: The company encourages shareholders to consult their personal tax advisors to ensure a clear understanding of the specific tax treatment of W. P. Carey dividends, thereby mitigating potential tax risks.
- Portfolio Scale: As of September 30, 2025, W. P. Carey holds 1,662 net lease properties covering approximately 183 million square feet, indicating its strong market position and diversified investment strategy in commercial real estate.
- Long-term Leasing Strategy: The company focuses on single-tenant industrial, warehouse, and retail properties in the U.S. and Europe, utilizing long-term net lease agreements with built-in rent escalations, ensuring stability and growth potential for future revenues.
See More
