W.P. Carey has purchased a $47 million office building
occupied by Bose, which it will lease back to the stereo
It is the latest acquisition byW.P. Carey (
), a real estate investment trust (REIT) that specializes in
buying corporate and commercial properties and leasing them back
to either the former owner or the occupant.
The Carey move to buy a building provides capital to the
former owner, plus provides Carey and investors in its REIT a
source of income.
Carey announced the acquisition Wednesday. Earlier this month,
Carey announced the acquisition of the Norwegian headquarters of
the French oil and gas companyTotal (
Carey was founded in 1973 by William Polk Carey, who died in
The company owns 686 buildings with 216 tenants and 82 million
square feet, and collects annual rent of $640 million. The
average lease term is 8.6 years, and the occupancy rate is 98.5%.
It operates in 16 countries.
Among its tenants are U-Haul,Dick's Sporting Goods (
) and even the headquarters of the iconicNew York Times (
Earnings growth has been uneven the past few years. After
peaking at $4.70 a share in 2011, it declined to $3.62 in 2012,
then grew to $4.23 in 2013. Analysts expect 10% growth this year
but an 11% decline in 2015.
Pretax margins for 2013 were a healthy 19%, but have been much
higher. They were 58% in 2011.
From a technical standpoint, Carey is building a long base
going back to May 2013. It appears to be working on the right
side of the base.
Carey has been growing its dividend at a steady rate. Its
five-year annualized dividend growth rate is 11%. Its current
quarterly dividend is 90 cents per share, which works out to an
annual yield of 5.3%. The most recent dividend was paid out July