Citizens analyst Mitch Germain reiterated a Market Perform rating on W. P. Carey & Co. (NYSE: WPC).

The analyst commented, "W.P. Carey’s adept asset management capabilities have enabled the company to curb impact from the recently announced bankruptcy of its 18th largest tenant, Hellweg, a European home improvement retailer; maintain our Market Perform rating. Hellweg was consistently one of WPC’s top three tenants, though the company’s push into the industrial sector and the declining financial performance of the tenant, prompting a lease restructuring and asset sales, led to a reduction in rents. Management reaffirmed guidance despite the bankruptcy filing, as 1) the tenant is current on rents through May; 2) there are bank guarantees covering three additional months of rent; 3) WPC has backfilled roughly half of its remaining Hellweg exposure; and 4) the outlook incorporates some credit loss assumption. While we suspect the Hellweg news creates some near-term overhang, management’s proven asset management track record and commitment to transparency should mitigate this risk, in our view. Shares trade at a slight multiple premium relative to the net-lease sector, just under 14x 2026E AFFO/share, which we believe prices in above-average organic growth, a high proportion of industrial exposure, and the growing investment pipeline. Therefore, we view the shares as fairly valued."

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Shares of W. P. Carey & Co. closed at $72.23 yesterday.