NEW YORK - W. P. Carey Inc. (NYSE: NYSE:WPC), a prominent net lease real estate investment trust (REIT), disclosed its full-year investment volume for 2023, which amounted to approximately $1.3 billion. This includes around $320 million in transactions completed in the fourth quarter, with a weighted-average capitalization (cap) rate of 7.7%.
The company's fourth-quarter activity featured a significant cross-border sale-leaseback with Fedrigoni Group, involving 11 facilities across Italy, Spain, and Germany, for a total of $157 million. These properties are net leased under master leases by country. Additionally, W. P. Carey is scheduled to complete the acquisition of five more properties in Italy for roughly $148 million in January 2024, contingent on certain conditions.
Throughout 2023, W. P. Carey concentrated on acquiring single-tenant warehouse and industrial assets, which represented about 75% of its annual investment volume. Geographically, around 80% of the company's investments were in North America, with the remaining 20% in Europe.
Jason Fox, CEO of W. P. Carey, commented on the market conditions and the company's strategic approach, noting that despite rising interest rates leading to protracted negotiations and deal closures, the company maintained discipline in its investment strategy.
As of September 30, 2023, W. P. Carey's portfolio comprised 1,413 net lease properties covering approximately 171 million square feet and 86 self-storage operating properties.
The information in this article is based on a press release statement from W. P. Carey Inc.
InvestingPro Insights
In light of W. P. Carey Inc.'s strategic investments throughout 2023, real-time data and insights from InvestingPro paint an encouraging picture for investors considering the company's stock. With a solid market capitalization of $14.61 billion, W. P. Carey is trading at an attractive P/E ratio of 18.46, suggesting a potentially undervalued investment opportunity when paired with its impressive gross profit margin of 92.39% from the last twelve months as of Q3 2023. These financial metrics, including a robust revenue growth of 22.15% over the same period, underscore the company's financial health and its capability to generate profits efficiently.
InvestingPro Tips highlight W. P. Carey's high earnings quality, as evidenced by free cash flow exceeding net income, and a track record of consistently increasing earnings per share. These factors, along with the anticipation of sales growth in the current year, suggest that the company is well-positioned for continued financial success. Moreover, the company's commitment to shareholder returns is illustrated by its impressive history of maintaining dividend payments for 26 consecutive years, with a dividend yield of 5.15% as of the latest data.
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