Where Will W.P. Carey Be in 1 Year?

As CEO Jason Fox discussed W.P. Carey's (NYSE: WPC) 2024 results, he specifically noted that the year was the "new baseline" for the company's adjusted funds from operations (FFO). This highlights the fact that 2024 was a reset year for the net lease real estate investment trust (REIT). But the changes aren't quite over yet. Here's why W.P. Carey may not be much bigger in a year, but why it will, likely, be a much better REIT.

In 2024, W.P. Carey paid $3.49 per share in dividends, approximately 15% lower than what it paid in 2023. That's not exactly good news, but there was a very specific reason for the lower dividend. In late 2023, W.P. Carey announced that it would exit the troubled office sector, a process that involved selling properties that accounted for roughly 16% of its rent roll. This effort wasn't completed until early 2024, and, given the size of the office portfolio, it required a dividend reset.

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Source Fool.com