Summary
- It’s that consistency and predictability that has earned WPC a valuable place setting in my Durable Income portfolio.
- Upon closer examination, WPC’s valuation gap appears to be almost exclusively related to “confusion risk” associated with the recently announced CPA:17 acquisition.
- Given the wide valuation gap, we believe that there’s strong upside to initiating a position now.
- This idea was first discussed with members of my private investing community, Intelligent REIT Investor. To get an exclusive ‘first look’ at my best ideas, subscribe today >>
I have been covering W.P. Carey (WPC) for quite some time, for over seven years. In my very first article (published on June 22, 2011) I wrote:
“As a global net lease REIT, W. P. Carey has provided “SWAN” investors with a constant net lease source of income for almost 40 years. The globally diverse asset portfolio, combined with its sustainably innovative operating platform, has made W. P. Carey one of the safest and reliable real estate investment platforms in the world.”
As you see, I have always considered WPC a “sleep well at night” REIT and I even defined the term (in that 2011 article):
“The SWAN investor is seeking a fundamentally safe investment strategy where principal preservation and sustainable income (and growth) are a must. Essentially, this investor is seeking a bond-type investment in a real estate wrapper.”
Since that time, WPC has consistently delivered on its promise of providing investors with predictable dividend income, and over that time shares have returned an average of 12% per year. It’s that consistency and predictability that has earned WPC a valuable place setting in my Durable Income portfolio.
