Dividend Investing Ideas Center
Have you ever wished for the safety of bonds, but the return potential...
W.P. Carey Inc. (WPC) is one of the largest net lease real estate investment trusts (REITs) in the world with a diverse portfolio of more than 1,200 properties covering about 142 million square feet.
The company’s portfolio primarily consists of industrial, warehouse, office, retail, and self-storage properties with contractual rent increases, 98.9% occupancy rate, and a 10.6 year weighted average lease term. With about 40% of its properties located in Europe, the company also provides shareholders with a level of geographic diversification.
From an investment standpoint, the company has increased its dividend every year since going public in 1998 with a conservative and stable payout ratio since its conversion to a REIT in 2012. Management also continues to pursue capital investment projects to build value with $172 million worth of development projects in progress, as of September 30, 2020.
Commercial REITs experienced significant declines throughout the COVID-19 pandemic. In particular, restaurant and shopping mall REITs have struggled with growing delinquencies and lower occupancy rates. The good news is that most REITs are conservatively financed and able to weather the short-term volatility.
During the third quarter, W.P. Carey reported revenue that fell just 1.8% to $297.3 million, beating consensus estimates by $400,000, and fund flow from operations (FFO) of $1.15 per share, beating consensus estimates by $0.05 per share. The company also reinstated guidance for fiscal year 2020 with an adjusted FFO range of $4.65 to $4.75 per diluted share, in line with consensus estimates.
W.P. Carey’s relatively strong performance led it to increase its quarterly dividend to $1.046 per share or a forward yield of just over 6%. The dividend is payable on January 15, 2021 to shareholders on record as of December 31, 2020.
Want to keep track of all the dividend increases? Subscribe to Dividend.com and have complete access to our exclusive dividend increases list here.