Summary
- This Net Lease REIT is considered a "blue chip" in our book.
- Although not as cheap as other peers, we like the risk/reward thesis that provides investors with a safe 6.1% dividend yield.
- W.P. Carey is a REIT that we intend to own "for the long run."
- Looking for a portfolio of ideas like this one? Members of iREIT on Alpha get exclusive access to our model portfolio. Get started today »
- This article was co-produced with Nicholas Ward.
In recent weeks, we've noticed a lot of bullish commentary popping up around W.P. Carey (WPC). We highlighted strong, double-digit annualized return prospects ourselves, during the last WPC update that iREIT provided.
However, while we certainly believe that WPC is one of the highest-quality REITs in the world, with a top notch management team, a portfolio that's well diversified both geographically and with regard to the industries that its tenants operate within, and an illustrious history of strong shareholder returns, we've also noticed that the stock has run up a bit since our last update and the company's underlying fundamentals have deteriorated slightly.
Source: Yahoo Finance
With that in mind, we wanted to re-visit our recent analysis and see what sort of impact the changes in consensus fundamental estimates have had on our forward looking prospects for WPC stock.
Two Month Update: Steady As She Goes
Our last update on WPC was published in mid-April of this year. Frankly, not a lot has changed since then from an operational standpoint.
WPC continues to operate an impressive portfolio of well diversified assets. We discussed the company's holdings in much more detail in the April price linked above. However, here's a quick rundown of our thoughts regarding WPC's real estate assets.
