Latest news with #netlease
Yahoo
a day ago
- Business
- Yahoo
1 Reason to Buy W.P. Carey (WPC)
Key Points W.P. Carey pays a high-yielding dividend. The REIT routinely raises its payment. Its growth drivers should allow it to continue increasing its lucrative dividend. 10 stocks we like better than W.P. Carey › W.P. Carey (NYSE: WPC) stands out as one of the largest REITs specializing in net lease properties. It offers investors highly stable rental income from tenants who cover all property operating expenses. This approach enables the landlord to pay a lucrative dividend. The REIT's attractive dividend is a great reason to buy and hold its stock. Here's a closer look at W.P. Carey's payout. W.P. Carey pays a quarterly dividend of $0.90 per share, or $3.60 annually. With its stock recently under $65, this gives it a yield above 5.5%, much higher than the S&P 500's 1.2%. The diversified REIT has steadily increased its dividend since resetting the payment level in late 2023, following its strategic decision to exit the office sector and focus on property sectors with better long-term growth drivers, such as industrial real estate. Before that reduction, W.P. Carey had increased its payout every year for a quarter century. W.P. Carey expects to raise its dividend at around the same rate it increases its adjusted funds from operations (FFO). It has two growth drivers. Most of its long-term net leases include clauses that either increase rents at a fixed rate each year or adjust rents based on changes in inflation indexes, such as the Consumer Price Index. These mechanisms support low- to mid-single-digit annual base rent growth. In addition, W.P. Carey uses its remaining free cash flow after paying dividends, along with proceeds from non-core property sales and leveraging its investment-grade balance sheet, to acquire new properties. Its targeted investment range of $1 billion to $1.5 billion for this year should provide incremental sources of rising rental income. These two main growth drivers -- escalating rental rates and new investments -- should support mid-single-digit annual adjusted FFO-per-share growth and ongoing dividend increases. W.P. Carey's high-yielding and steadily growing dividend makes it a great REIT to buy and hold for passive income from real estate. Should you invest $1,000 in W.P. Carey right now? Before you buy stock in W.P. Carey, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and W.P. Carey wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Matt DiLallo has positions in W.P. Carey. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 1 Reason to Buy W.P. Carey (WPC) was originally published by The Motley Fool Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
18-07-2025
- Business
- Yahoo
Starwood Property (STWD) Falls on $2.2-Billion Acquisition of Fundamental Income
We recently published . Starwood Property Trust, Inc. (NYSE:STWD) is one of the worst-performing companies on Thursday. Starwood Property declined by 5.47 percent on Thursday to end at $19.71 apiece as investors shunned news that it was acquiring a net-lease firm for $2.2 billion. In a statement, Starwood Property Trust, Inc. (NYSE:STWD) said it entered into a definitive agreement to acquire Fundamental Income Properties, LLC from Brookfield Asset Management. Fundamental Income operates a vertically integrated net lease real estate investment business, with 467 properties across its portfolio spanning 12 million square feet across 44 states, 56 industries, and 92 tenants. 'When we went public in 2009, we said we would create a diversified company around the areas of expertise of our Manager, Starwood Capital. With the addition of another business cylinder, we are expanding into another proven, scalable segment with strong synergies with our platform. Our core commercial real estate lending business is now approximately half of our asset base as we have strategically expanded into complementary lending and investing verticals,' said Barry Sternlicht, Chairman and CEO of Starwood Property Trust, Inc. (NYSE:STWD). A sky high view of the corporate headquarters indicating the large scale of the company. Following the acquisition, the company announced the distribution of dividends worth $0.48 per share for shareholders as of September 30 record date. The dividends will be payable on October 15, 2025. While we acknowledge the potential of STWD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
06-07-2025
- Business
- Yahoo
1 Magnificent High-Yield Stock Down 30% to Buy and Hold Forever
W.P. Carey offers a lofty 5.8% dividend yield. The real estate investment trust cut its dividend in 2023. Investors may not appreciate the growth potential for this industrial focused net lease REIT. 10 stocks we like better than W.P. Carey › The S&P 500 index (SNPINDEX: ^GSPC) is offering a tiny 1.3% or so yield and it is trading near all-time highs. That's not a great backdrop for dividend investors trying to find high-yield stocks. But if you take your time and do your research, you can still find attractive income opportunities. W.P. Carey (NYSE: WPC) and its 5.8% yield could be just what you are looking for, if you don't mind buying when other investors are selling. W.P. Carey is a net lease real estate investment trust (REIT). That means it generally owns single-tenant properties for which the tenant is responsible for most property-level expenses. W.P. Carey competes with large peers like Realty Income (NYSE: O) and NNN REIT (NYSE: NNN). Realty Income is the largest player in this segment, with a market cap of about $50 billion. W.P. Carey is No. 2 at $13 billion, with NNN REIT coming in at about $8 billion. Net lease REITs tend to be fairly boring and reliable income stocks. The big driver of the business is sale/leaseback deals that are more of a financing transaction for the seller. Which is why all three of these stocks are out of favor right now because higher interest rates crimp the profitability of net lease REITs and their ability to ink new deals. W.P. Carey's stock has performed the worst, down about 30% from its highs in 2019. Some of that underperformance can be attributed to one simple fact. NNN REIT has increased its dividend annually for 36 years. Realty Income has increased its dividend annually for 30 years. W.P. Carey cut its dividend in 2023. But don't skip W.P. Carey for this reason because it has a lot to offer. The first issue to address is the dividend cut, though "dividend reset" is probably a better characterization of the event. In 2023 W.P. Carey made the decision to exit the troubled office sector and sell its office holdings. That move necessitated lowering the dividend because of the size of the office property segment in its portfolio. It is now focused on industrial, warehouse, and retail properties, all of which are more lucrative property segments. The company started increasing the dividend again the quarter after the cut and has been increased each quarter since, which is the same pattern as before the reduction. The portfolio is in much better shape today than it was before the office exit. And the industrial and warehouse focus sets W.P. Carey apart from Realty Income and NNN, which both focus heavily on retail. Pairing W.P. Carey with one of these two net lease REIT peers could actually make a nice combination that covers a lot of ground. But the big story is that W.P. Carey's office exit left it with cash to invest in new properties. It has been putting that money to work and that will likely boost growth during the next couple of years. Notably, net lease giant Realty Income's last dividend hike amounted to a year-over-year increase of 0.2%. W.P. Carey's last increase was over 3% year over year. That's a trend that is likely to continue during the near term as new acquisitions start to generate cash flow. But there's more to the story, because W.P. Carey tends to build inflation-linked rent escalators into its leases. That further supports growth and sets the company apart from its peers, which aren't as aggressive on this point. When investors look at the net lease REIT sector they often default to Realty Income or NNN REIT. That's not a bad thing, but don't overlook the opportunity W.P. Carey presents. Up until the dividend reset, the company had raised its payout for 24 consecutive years. And given W.P. Carey's relatively strong dividend growth, it could be well worth stepping aboard even for conservative investors once they understand the backstory. Most important, however, is the differentiated property focus offered by W.P. Carey, given its emphasis on industrial and warehouse assets. If you are looking at Realty Income or NNN REIT, you might actually want to buy them and add W.P. Carey, too, to more fully round out your net lease exposure. Before you buy stock in W.P. Carey, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and W.P. Carey wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $699,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $976,677!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 30, 2025 Reuben Gregg Brewer has positions in Realty Income and W.P. Carey. The Motley Fool has positions in and recommends Realty Income. The Motley Fool has a disclosure policy. 1 Magnificent High-Yield Stock Down 30% to Buy and Hold Forever was originally published by The Motley Fool
Globe and Mail
01-07-2025
- Business
- Globe and Mail
Can Realty Income's Expansion Into New Sectors Fuel Future Growth?
Realty Income O, a leader in net lease real estate, is expanding beyond traditional U.S. retail into high-value sectors and international markets, strengthening its growth trajectory and defensive positioning. With more than 15,600 properties across eight countries, the REIT leverages scale, diversification, and disciplined underwriting to drive long-term value. The company's strategy emphasizes sectoral and geographic diversification. In recent years, Realty Income has entered gaming with a $1.7 billion acquisition of Encore Boston Harbor and a $650 million preferred equity investment in Bellagio Las Vegas. In data infrastructure, it committed $200 million via a joint venture with Digital Realty, gaining exposure to Northern Virginia's data center hub. International expansion is also a key. Since 2019, nearly 30% of sourced volume has come from international markets, mainly Europe, where public net lease REIT competition is limited. From 2020 to 2024, Realty Income sourced $335 billion in opportunities and acquired $31 billion through a selective, analytics-driven approach. Its global addressable market now stands at an estimated $14 trillion. In first-quarter 2025, Realty Income invested $1.4 billion at a 7.5% cash yield, $893 million in Europe (7.0%) and $479 million in the United States (8.3%). It now expects full-year 2025 investments to total $4 billion. With a 5% AFFO CAGR since 1996 and stable EBITDA margins, Realty Income's platform offers a compelling mix of income stability and growth. Long leases, strong tenant credit, and a scalable capital base further support its global expansion strategy. Where are Other Retail REITs Investing? Simon Property Group SPG is revamping its portfolio with premium acquisitions and transformative redevelopments. It recently acquired Swire Properties' stake in the retail and parking component at Brickell City Centre, which is a mixed-use property in Miami. SPG earlier owned a 25%, non-managing interest in the retail at Brickell City Centre and now has secured full ownership and operational control. The retail REIT also has ongoing expansion efforts across geographies through new anchors, big-box tenants, and restaurants. Kimco Realty KIM is pursuing opportunistic investments to strengthen its portfolio. In first-quarter 2025, it acquired The Markets at Town Center in Jacksonville for $108 million and two shopping center fee interests for $24.2 million. The RPT acquisition boosted scale in key markets. For 2025, Kimco plans $100-$125 million in acquisitions and similar spending on redevelopment efforts. O's Price Performance, Valuation and Estimates Shares of Realty Income have risen 7.9% year to date against the industry 's decline of 8.8%. From a valuation standpoint, O trades at a forward 12-month price-to-FFO of 13.23, below the industry. It carries a Value Scor e of D. The Zacks Consensus Estimate for O's funds from operations (FFO) per share has been revised marginally upward over the past 30 days. At present, Realty Income carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Simon Property Group, Inc. (SPG): Free Stock Analysis Report Kimco Realty Corporation (KIM): Free Stock Analysis Report
Yahoo
30-06-2025
- Business
- Yahoo
Global Net Lease Successfully Closes Third and Final Phase of Multi-Tenant Portfolio Sale
— Sale of 12 Properties Generates Approximately $313 Million in Gross Proceeds — Portfolio Sale Completed; Accelerates Deleveraging Plan and Transforms GNL to Single-Tenant Net Lease REIT NEW YORK, June 23, 2025 (GLOBE NEWSWIRE) -- Global Net Lease, Inc. (NYSE: GNL) ('GNL' or the 'Company') announced that it has completed the final phase of its multi-tenant portfolio sale to RCG Ventures, LLC on June 18, 2025, including 12 encumbered properties. This third phase generated approximately $313 million in gross proceeds1, bringing total gross proceeds from the portfolio sale to $1.8 billion2. GNL plans on using the incremental net proceeds from the third phase of the multi-tenant portfolio sale to further reduce leverage by paying down the outstanding balance on GNL's Revolving Credit Facility. The multi-tenant portfolio sale simplifies GNL's portfolio and sharpens its strategic focus by becoming a pure-play net lease owner and operator. This transition is expected to generate approximately $6.5 million in recurring annual G&A savings, along with additional cash savings from a substantial reduction in annual capital expenditures. GNL also believes the multi-tenant portfolio sale will create significant efficiencies in its operations by eliminating the complexities associated with managing multi-tenant retail properties. 'The completion of our multi-tenant portfolio sale marks the final step in our evolution into a pure-play single-tenant net lease company with streamlined operations and improved portfolio quality,' said Michael Weil, CEO of GNL. 'Divesting these multi-tenant assets has strengthened our balance sheet by accelerating our deleveraging efforts and improving liquidity. We remain focused on achieving an investment-grade credit rating, which we believe will lower our cost of capital and increase our financial stability. We are confident that this strengthened foundation will support continued growth and value creation for our shareholders.' About Global Net Lease, Inc. Global Net Lease, Inc. (NYSE: GNL) is a publicly traded internally managed real estate investment trust that focuses on acquiring and managing a global portfolio of income producing net lease assets across the U.S., and Western and Northern Europe. Additional information about GNL can be found on its website at Important Notice The statements in this press release that are not historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that could cause the outcome to be materially different. The words such as 'may,' 'will,' 'seeks,' 'anticipates,' 'believes,' 'expects,' 'estimates,' 'projects,' 'potential,' 'predicts,' 'plans,' 'intends,' 'would,' 'could,' 'should' and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to a number of risks, uncertainties and other factors, many of which are outside of the Company's control, which could cause actual results to differ materially from the results contemplated by the forward-looking statements. These risks and uncertainties include the risks that any potential future acquisition or disposition by the Company is subject to market conditions, capital availability and timing considerations and may not be identified or completed on favorable terms, or at all. Some of the risks and uncertainties, although not all risks and uncertainties, that could cause the Company's actual results to differ materially from those presented in the Company's forward-looking statements are set forth in the 'Risk Factors' and 'Quantitative and Qualitative Disclosures about Market Risk' sections in the Company's Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q, and all of its other filings with the U.S. Securities and Exchange Commission, as such risks, uncertainties and other important factors may be updated from time to time in the Company's subsequent reports. Further, forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise any forward-looking statement to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law. Contacts:Investor RelationsEmail: investorrelations@ (332) 265-2020 Footnotes:1 Includes a $210 million mortgage that is being assumed by RCG Ventures, LLC.2 Includes $256 million and $210 million mortgages being assumed by RCG Ventures, LLC.
