W.P. Carey (
) easily topped expectations with its second-quarter results this
The real estate investment trust specializing in commercial
space reported Tuesday adjusted funds from operations (FFO) of
$1.21 a share, an increase of 15%.
Revenue excluding reimbursable costs climbed 26% to $205.2
million as the company concluded its first full quarter of
operations with a recent acquisition.
Carey also raised its full-year FFO guidance to $4.62 to $4.82
a share. The earlier forecast was for $4.40 to $4.65.
The company's earnings history has been more uneven than other
Carey focuses on sale-leaseback properties, a strategy in
which it buys its clients' buildings and leases them back to
It gets most of its revenue from rents, but it also works as
an adviser to several nontraded REITs, earning 13% of revenue
from that business.
It owns about 700 properties in 16 countries, totaling more
than 83 million square feet of real estate. The company says
98.5% of that space is occupied.
The portfolio is well diversified, with 20% in retail space,
10% in the electronics industry and the rest spread among auto
dealers, health, publishing, construction and other
Carey pays a quarterly dividend of 90 cents a share for an
annualized yield of 5.4%. Since 1998, the dividend has been
raised almost every quarter, according to the company's website.
That gives the company an outstanding dividend growth rate.
Shares of W.P. Carey have been in a long, saucerlike
consolidation since May 2013. There's no clear entry on its
chart, but the stock is near its 52-week high of 69.09.
The Accumulation/Distribution Rating and the up-down volume
ratio are at bullish levels, which bode well for the stock's