W. P. Carey (NYSE: WPC) ranks among the largest net lease REITs with an enterprise value of approximately $24 billion and a well-diversified portfolio of high-quality, operationally critical commercial real estate, which includes 1,449 net lease properties covering approximately 176 million square feet and a portfolio of 84 self-storage operating properties, as of December 31, 2022. With offices in New York, London, Amsterdam and Dallas, the company remains focused on investing primarily in single-tenant, industrial, warehouse and retail properties located in the U.S. and Northern and Western Europe, under long-term net leases with build-in rent escalations.
- Market Cap: 14.566 Billion
- PE Rato: 19.13
- EPS: 3.56
- Dividend Yield: 6.27%
With an enterprise value of approximately $23 billion, W.P. Carey ranks as one of the world’s largest net-lease REITs. WPC invests in single-tenant, net lease industrial, warehouse, office, retail and self-storage properties that have long-term net leases and built-in rent escalators. The REIT’s assets are located in the US and Europe.
At present, W.P. Carey’s portfolio consists of 1,449 properties leased to 392 tenants, encompassing 176 million square feet of leasing space. The portfolio breakdown by property type is dominated by industrial (27%) and warehouse (24%), with smaller concentrations of office (17%), retail (17%) and self-storage (4%). Top tenants include U-Haul, the Spanish government, German retailer Hellweg and Extra Space Storage.
WPC’s portfolio boasts a 98.8% occupancy rate and a weighted average remaining lease term of 10.8 years. Approximately 55% of the REIT’s leases have contractual rent escalators linked to CPI and another 40% of leases have fixed escalators.
W.P. Carey delivered 5.2% adjusted FFO per share gains in 2022. The REIT ended the December quarter with $2.2 billion of liquidity, and received a ratings upgrade from S&P in January.
WPC is another of the best REITs to buy for reliable dividend growth. The company has increased its dividend every year since going public in 1998 and has maintained a stable payout since converting to a REIT in 2012. Payout from adjusted FFO currently ranges around 68%.
WPC is currently valued at roughly 13 times forward adjusted FFO, a roughly 8% discount to its industry peers. Plus, its dividend yield of 6.27% is the highest among the REITs.
In addition. W.P. Carey is one of the cheap dividend stocks with high yields. Thus, WPC is one of the better stocks to own for long term investors.