Wolfe Research Upgrades W. P. Carey & Co. (WPC) to Outperform

Wolfe Research analyst Andrew Rosivach upgraded W. P. Carey & Co. (NYSE: WPC) from Peerperform to Outperform with a price target of $85.00.

The analyst comments "Fundamentals. WPC has considerable advantages, including CPI-linked leases (48.6% of of ABR, see Exhibit 1), improved investment spreads (Exhibit 3) and the ability to access Euro debt. ● Earnings. The above fundamentals support a high single digit growth outlook (see Exhibit 4). Actual growth will be below business model growth near term (Exhibit 5), primarily due to refinance headwinds (the company has a significant amount of low-cost debt expiring in the near term). Our estimates are above consensus for both 2026 and 2027. Our proxy report highlights WPC has strong incentives tied to exceeding AFFOPS guides with a high hurdle for maximum payout (see Exhibits 7 and 8 here). ● Valuation-attractive combination of growth and yield. We estimate WPC trades at 14.2x 2026 AFFOPS, and a two-year PEG of 2.8x, versus our REIT coverage at 3.1x. To boot, the company's dividend yield (5%) is 140 basis points above that of our coverage, making WPC an attractive total return story (~10% combined yield and growth contributions). ● Key risks include (1) rate increases that would increase capital costs (though WPC is partially insulated by $654 million of undrawn equity issuance as of March 31, (2) Credit events (Hellweg/Cornerstone as examples), (3) Lease termination fees which can be difficult to predict, and (4) FX changes."

For an analyst ratings summary and ratings history on W. P. Carey & Co. click here. For more ratings news on W. P. Carey & Co. click here.

Shares of W. P. Carey & Co. closed at $74.49 yesterday.

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