WP Carey Has Crashed: Buy, Hold, or Sell? (WPC Stock)

WP Carey (WPC Stock) is a close peer of Realty Income (O Stock) one of the most popular REITs in the world, offering a high dividend yield and steady dividend growth. But recently, W.P. Carey's share price has crashed after it cut its dividend. Is WPC stock a Buy, Hold, or Sell? We take a look at its latest results and news and discuss our opinion about the company. 🎁You can access my entire REIT Portfolio by taking a 2-week free trial to my REIT newsletter, High Yield Landlord: seekingalpha.com/affiliate_li...
HELP UKRAINE: • I'm Investing $10,000 ...
W.P. Carey (WPC REIT) is one of the most popular REITs for individual investors because it has a great track record. W.P Carey is a net lease REIT that has grown its dividend for nearly 30 years in a row. But the popular dividend growth stock recently cut its dividend. Is now the time to sell? Will the spin off lead to more losses? Or is it one of the best stocks to buy now? I answer these questions in this wp carey stock analysis.
🎁Take a 2-Week Free Trial to my REIT newsletter to access my entire portfolio: seekingalpha.com/affiliate_li...
💰 Interested in my non-REIT portfolio? Sign up to High Yield Investor for a 2-week free trial to access all my stock and bond investments: seekingalpha.com/affiliate_li...
🧵Follow me on Twitter for real-time updates on the REIT sector: / askjussi
📩Subscribe to my new Substack for REIT analysis. It is FREE: jussiaskola.substack.com/
Image sources: GMRE, CCI, VNA, NAREIT, YCHARTS, EPRA, Canva
Important Disclaimer: I hold a position in WPC. This video is impersonal and does not provide individualized advice or recommendations for any specific person. Viewers/readers should not make any investment decision without conducting their own due diligence and consulting their financial advisor about their specific situation. This video is for entertainment purposes only and you are responsible for your own investment decisions. The information is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. The opinions expressed are those of the publisher and are subject to change without notice. This KZbin channel is managed by Leonberg Research OÜ, a subsidiary of Leonberg Capital OÜ.
#reits #dividend #passiveincome

[@askjussi]

I am buying a lot of WPC and I explain why. What other REITs are you buying at the moment? Let me know below. Thank you so much for all your support. Your "likes" help me a lot to grow this channel and I appreciate it. Jussi

[@sagig72]

Good luck Jussi. I actually don't own WPC, but it may be that if I sell Realty Income, then I'll switch it into WPC, tho for now, I still am not selling Realty Income.

[@jeffmartin3049]

Why not just own VNG instead of owning 10 different reits

[@bhuntington4]

I have not added to this position but I have held it through the dip and just reinvested the dividends. I think it will pay off in the long run.

[@stevelewis7501]

​@@jeffmartin3049You must be new here. He's explained that many many times. Go watch precious videos.

[@RabianskiT]

@@bhuntington4 Same here. Not adding WPC, but keeping it. I was thinking about selling, but I decided to give them another chance.

[@juniormint68]

I’m wondering if you might do a video about pure industrial REITs like Prologis or Stag, others?

[@claudiox2183]

I totally agree with you, Jussi. I am gonna hold on WPC and as soon as possible buy more. BTW, thank you for you efforts for Ukraine. I have my girlfriend working as a nurse in Odessa. The situation is really dire.

[@askjussi]

Thank you for your support!

[@jeffrucks4477]

I have been buying WPC,O,VICI,NNN,EXR,AMT,CCI,and also MPW--I am a gambler.

[@RabianskiT]

Sounds like a quite versatile REIT combo. Only MPW is a gamble…

[@askjussi]

Haha yes I agree that MPW is a speculative REIT. Thanks for sharing

[@MartinD9999]

4:19 Absolutely correct. This drop is nothing but OPPORTUNITY. I predict WPC will be one of my best performers in 5 years if I keep buying it after it tanked. Thanks for posting an update on WPC.

[@askjussi]

Good to hear that we are on the same page

[@davidwysocki1004]

Thanks, Jussi, for your presentation on WPC, a REIT I used to own until it cut is dividend unexpectedly. But you do make a compelling case for investing in WPC today. Good stuff!

[@Timboek89]

Thank you Jussi! I've been hoping for this video for a while ;). I own ADC, AHH and WPC. I've got around 5% of my portfolio in each of them.

[@hungriaind1]

Great video. Thank you 👍

[@tombritting5414]

Owned WPC for several years. Endured the pain but purchased another 200 shares at 54. Now down 14% but as with ADC that I added at the bottom, I am anticipating the rewards of patience. Good video

[@askjussi]

Thanks for sharing!

[@Rockiii9]

I purchased WPC last Sept, not long before the spinoff of their remaining office properties into another REIT, Net Lease Office properties. WPC had already reduced their exposure to this segment by selling off office properties, so NLOP was the remainder. Valued at 12 at Spinoff in late Oct, it closed at 24.89 last Fri. When you calculate total return for WPC for anything longer than 6 months, this should be accounted for.

[@IPQ-sj2zs]

It was smart of you to keep NLOP. I would have never thought it would perform better than WPC. Does this actually tell about the quality of WPC?

[@Saxafruge]

Thanks, bought a share while i study it :)

[@sagig72]

Good video as always Jussi. Can I make a suggestion: Can you make a video, perhaps in 2 or 3 parts and give your thoughts about "if you were to create a new REIT portfolio from scratch, say up to 10 REITs then which would you include, how would you divide your position ratios, perhaps between a more risky portfolio and another one a more conservative one"? It's just a thought. Just to be clear: I'm not suggesting that in order to "copy" your thoughts, I have a serious portfolio already, I'm more interested to learn your thoughts on how you would balance your portfolios in both ways etc etc... What do you think? like said, it's just a suggestion.

[@askjussi]

Sure! Thanks for the suggestion.

[@thebunnyfoofoo]

I was literally thinking the same thoughts. What are benefits to setting up your own REIT

[@Dividend_Cowboy]

Still holding my WPC shares. I feel the future is looking positive for this REIT. 👍🏻

[@MartinD9999]

Yeah, no doubt. It’s a great REIT. If anything, it’s only gotten more secure and efficient now.

[@Chrisdask8]

Recent dips were used to accumulate WPC for the long term ❤

[@americansulla9637]

I am going to buy some WPC soon. I also plan to buy some UMH. People complain about affordability of home ownership and trailer parks offer a solution to that. People park their homes for more than a decade at a time on average and there are opportunities for extra fees to be gained from selling things like self-storage or finance or manufactured home sales or leases along the way. I am avoiding VICI. What will happen to the strip long term when people can gamble on their phones or at their local Indian reservation? Las Vegas grew because they had little to no competition for the legal gambling dollar for generations. This has changed. It doesn't seem like this would be a good thing for the company owning the property there.

[@TheBazino]

Buying this as soon as this month's paycheck hits my account.

[@RobbieE33]

Buying Vici and EPR atm. Also looking at WP Carey and CCI

[@askjussi]

Love those two as well

[@danielcedro8767]

Thank you Jussi! Could you please provide some examples of industrial REITs trading at 25-30x FFO multiples?

[@stevelewis7501]

@daniekcedro8767 he's talking longer term averages. PLD being best example.

[@danielcedro8767]

@@stevelewis7501 Thanks!

[@delinquense]

Today's garbage is tomorrow's gold!

[@reubenfenton3321]

Doing a good job Jussi

[@askjussi]

Thank you for your support!

[@Divyv520]

Hey Jussi , really nice video . I can do better editing in your videos which can help you to get more engagement in your videos . Pls lmk what do you think ?

[@jeffmartin3049]

I have a bunch of realty income in my Roth IRA, I have watched your videos and am thinking about diversifying some. I have looked at APLE hospitality. What are your thoughts? Should I diversify out of reality income or stay where I’m at. Like I said it is in my Roth IRA and we are looking at reinvestment also

[@askjussi]

I appreciate your interest. I am not a big fan of hotel REITs. This has been the least rewarding property sector over the long run.

[@beeej4681]

i like WPC. Liva la Ukraine!!

[@delinquense]

So funny...just a few years back. this REIT coul do no wrong and everyone should have bought it. Then basically overnight, it became something nobody would want. Then ...?. Yeah, whatever!

[@askjussi]

Because they sold their office buildings as well, which is a good move long term

[@FredMan_]

is WPC the REIT you replaced STAG for?

[@askjussi]

It is not :)

[@thiagomassa9807]

My next buy! This transformation that they've done in the company definitely has hurt it, but I can see it improving from now on without its asset management business, now I expect FFO to raise again, but even if it doesn't much, it's still priced well I wonder whether their rent hikes being over 1-3% like O and other nnn's isn't actually going to hurt it on the long run. I wish they'd compete similarly as its peers.

[@askjussi]

Thanks for sharing!

[@juniormint68]

I still like WPC. The last 18 months have been a needed “reset” and I feel they will come out better off.

[@idandez]

Another great, informative and thought provoking video. Thanks! and ... yes... Slava Ukraini!

[@askjussi]

heroyam slava!

[@sonny-km6zd]

Sincerally, now I'm interested in prologis, I think that is a very quality reit who combine growth and reit investing

[@askjussi]

I agree that it is. I prefer some of its peers

[@omiq7761]

Bought plenty of WPC on the way up, came crushing down but doubled down during COVID (as well as other REITs). Nibbed some more with the latest news drop. Full position for now. Hopefully the future is steady uphill from now on.

[@askjussi]

I believe that it will.

[@IPQ-sj2zs]

WPC's AFFO/share will drop this year, expectedly. But the growth in 2025 and 2026 is predicted to be anemic of 2-3% only. I can hardly see what would spur the hike of the multiple... And we are still not sure if we shall have the soft landing. If not, it will sell off even more than in October 2023...

[@keithss67]

Wish I had picked this up right after the spin off, but I was out of ammo to make any new large investments

[@askjussi]

We bought quite a bit of it back then :)

[@keithss67]

@@askjussi and that’s why I love you. That and your modesty 😜

[@christopherhopp9621]

What do you think about Hotel REITS? I think you never mentioned one!? (so I can guess already^^)

[@askjussi]

I generally don't like them

[@jeffmartin3049]

What do you think about my position in realty income? Would you diversify from it and spread it out a little bit or get rid of it all together and put the money somewhere else

[@RabianskiT]

Is this your only REIT?

[@jeffrucks4477]

Jussi--they also cut their dividend and that was big--but I am buying them and ADC.

[@askjussi]

ADC also cut in 2011. It did very well in the coming decade

[@jeffrucks4477]

@@askjussi Had forgotten that--thanks

[@LjErickson]

Can we get an update from you sometime regarding your latest thoughts on RICK RCI Hospitality

[@askjussi]

Sure! Note that we have that already at High Yield Landlord. Free trial in bio.

[@LjErickson]

@@askjussi ok. Great. Thanks. Appreciate the response. I will subscribe right now.

[@ray650420]

👍

[@gordonculp3646]

Why not just buy Stag instead?

[@askjussi]

I like both. They are quite different as REITs.

[@colinobrien1895]

How can payout ratio be 70% I thought all reits had to pay out 90% of Afro?

[@askjussi]

It is 90% of taxable income, which is a lot lower than AFFO

[@oinvestidorqualificado]

I buy WPC and O every month!

[@askjussi]

Why O? thanks!

[@jasoncook5613]

BNL GMRE, EPR are my picks