W. P. Carey: Portfolio Transformation Is Complete - Divergence Incoming

  • W. P. Carey has transformed its portfolio, now boasting high-quality industrial and warehouse assets with no office exposure, which the market underappreciates. The company's inflation-linked lease escalators and strong rent recapture rates position it for above-peer growth once capital recycling moderates. Despite recent underperformance and slow AFFO growth, the 5.7% dividend yield is attractive given the improved asset quality and growth outlook.