W.P. Carey (
) owns and manages more than 1,000 commercial properties around
the world in a wide variety of industries, property types and
The real estate investment trust argues that its broad
diversity is one of its strengths, protecting investors from
downturns in one area of the economy or region. The strategy
dates back to 1973, when William Polk Carey founded the
The industries in which it invests range from aerospace and
defense to public utilities. Its properties tend to be
single-tenant commercial properties.
It buys properties from retailers and others, then leases them
back over a period of 15 to 20 years, letting the company
monetize its assets, which it can then use to fund acquisitions,
pay down debt or reinvest in the business.
Another part of its business buys real estate from auto
dealers and leases it back to the dealer. For that segment, it
works in partnership with a company called CapRocq
At the end of the first quarter, W.P. Carey had an enterprise
value of $9.5 billion.
Growth has been erratic. Funds from operation, the REIT
equivalent of earnings, were $4.70 a share in 2011, $3.62 in 2012
and $4.23 in 2013. Analysts expect no growth this year or
But dividend growth has been steady. On June 19, the company
announced a quarterly dividend of 90 cents a share, which works
out to an annual yield of 5.5%. It was Carey's 53rd consecutive
quarterly dividend increase.
The five-year annualized dividend growth rate is 11%.
Pretax margins are 19%.
Carey's industry group rank has been improving. The
Finance-Property REIT industry group is ranked No. 43 out of 197.
It was No. 97 just eight weeks ago.