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W. P. Carey completes office exit, resets dividend with 6% yield at 12x AFFO, seen undervalued for growth.

Company Fundamentals
12 Oct 2026
Seeking Alpha
View Source
Bullish
W. P. Carey completes office exit, resets dividend with 6% yield at 12x AFFO, seen undervalued for growth.

W. P. Carey has finished exiting its office property holdings, resulting in a more focused portfolio and a dividend reset yielding 6% at 12 times AFFO. Despite cutting dividends in 2023 and facing tenant challenges, the company has increased dividends for 11 consecutive quarters and recovered most lost rent. With AFFO guidance at $5.23 and a payout ratio in the low 70s, WPC's strong balance sheet and capital recycling strategy position it for stable growth. The stock is currently considered undervalued, with a target valuation of 13x–14x AFFO ($68–$73) once interest rates stabilize, and covered calls can enhance returns.

W. P. Carey and its recent portfolio changes provide context for the following Real Estate sector snapshot on Pluang as of Oct 12, 2026 18:51 WIB: Among 34 priced US Real Estate stocks, 11 rose and 10 fell. Notable movers include BEKE at USD 17.69 with a -0.84% change and a typical hold time of 23 days, PSA at USD 288.12 down 0.60% with a 130-day hold, and VTR at USD 82.49 up 0.55% with a 3-day hold. The most notable figure is PSA's typical hold time of 130 days.

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