W. P. Carey (WPC - yield 5.90%)
W.P. Carey owns a diversified net lease portfolio that consists of 720 properties. The well-balanced portfolio consists of office, warehouse/logistics, industrial and retail properties. The portfolio has 234 tenants that lease over 85 million square feet of space.
Unlike many peer triple-net REITs, Carey’s sound investment platform has a large majority of built-in contractual rent increases. In addition to its owned assets, Carey also manages a number of non-traded REIT funds that generate fees (both asset management and acquisition fees).
A few weeks ago, Carey reported that its Board of Directors had increased its quarterly cash dividend to $0.895 per share, which equates to an annualized rate of $3.58. This marks the company’s 52nd consecutive dividend increase.
I consider Carey’s current yield to be a strong reason to BUY now. Carey’s track record for dividend safety is one of the best in the REIT sector.
On the latest earnings call, Carey said it was maintaining its 2014 full year AFFO guidance of $4.40-$4.65 per diluted share. I’m initiating a BUY on W.P. Carey shares.
Brad Thomas, The Intelligent REIT Investor, www.ireitinvestor.com, April 14, 2014