In the world of real estate investment trusts (REITs), W. P. Carey Inc. (NYSE: WPC) has recently captured the attention of investors and analysts alike. This prominent player in the net lease sector is navigating a landscape marked by significant changes in institutional holdings and analyst ratings, leading to a complex picture for potential investors.
According to a report published on April 21, 2025, Gamco Investors Inc. ET AL has reduced its stake in W. P. Carey by a staggering 39.8% during the fourth quarter. The firm sold 9,000 shares, leaving it with 13,600 shares valued at approximately $741,000, as indicated in its latest filing with the Securities and Exchange Commission. This move reflects broader trends among institutional investors, many of whom are re-evaluating their positions in the market.
In addition to Gamco's divestiture, several other institutional investors have made notable adjustments to their stakes in W. P. Carey. The National Pension Service entered the fray by acquiring a new stake valued at around $25,000, while Wingate Wealth Advisors Inc. and Millstone Evans Group LLC each purchased new stakes worth $37,000. Meanwhile, Bessemer Group Inc. has significantly increased its stake by 118.6%, now owning 741 shares valued at $40,000 after acquiring an additional 402 shares. Plato Investment Management Ltd. also joined the ranks of new investors with a stake valued at $48,000. Collectively, institutional investors and hedge funds now hold 73.73% of W. P. Carey’s stock, highlighting the significant influence these entities have on the company's market dynamics.
As W. P. Carey navigates these changes, analysts have begun to weigh in on the stock's future. BMO Capital Markets recently upgraded the stock from a "market perform" rating to an "outperform" rating, raising its price target from $60.00 to $67.00. This positive outlook was echoed by Scotiabank, which lifted its target price from $59.00 to $63.00 while maintaining a "sector perform" rating. Evercore ISI also increased its price target from $60.00 to $64.00, assigning an "in-line" rating. Wells Fargo & Company followed suit, raising its price objective from $58.00 to $66.00, while Royal Bank of Canada adjusted its target from $61.00 to $62.00, giving the stock an "outperform" rating.
Despite these positive shifts, the stock has received mixed reviews overall. One investment analyst has issued a sell rating, while five analysts have given it a hold rating, and three have assigned a buy rating. The stock currently holds an average rating of "Hold" with an average price target of $63.75.
On April 18, 2025, shares of W. P. Carey opened at $62.18. The company has reported a current ratio of 0.98, a quick ratio of 0.98, and a debt-to-equity ratio of 0.95. The firm’s stock performance has seen fluctuations, with a 12-month low of $52.91 and a high of $66.10. The market capitalization stands at approximately $13.62 billion, with a price-to-earnings (PE) ratio of 29.75 and a price-to-earnings-growth (PEG) ratio of 1.06, indicating a stable yet competitive position in the market.
W. P. Carey has also made headlines with its recent dividend announcement. The firm declared a quarterly dividend of $0.89 per share, which was paid on April 15, 2025, to stockholders of record as of March 31, 2025. This marks an increase from the previous quarterly dividend of $0.88, representing an annualized dividend of $3.56 and a dividend yield of 5.73%. However, it is noteworthy that the company's payout ratio stands at a high 170.33%, which may raise questions about the sustainability of these dividends moving forward.
As of December 31, 2023, W. P. Carey boasts a well-diversified portfolio consisting of 1,424 net lease properties covering approximately 173 million square feet, along with 89 self-storage operating properties. This extensive portfolio underscores the company’s strategic positioning within the commercial real estate market, which is increasingly vital as economic conditions evolve.
In conclusion, W. P. Carey Inc. finds itself at a crossroads, with significant changes in institutional holdings and analyst ratings shaping its trajectory. As investors weigh the implications of these developments, the company's ability to sustain its dividend and navigate market fluctuations will be closely monitored. For those considering an investment in W. P. Carey, the landscape is both promising and fraught with uncertainty, making careful evaluation essential.
