W. P. Carey (WPC) Registers Industrial Investments Worth $44M
W. P. Carey Inc. WPC is making efforts to enhance its position in the market and recently announced industrial property investments worth $44 million. These include mission-critical industrial properties, which were acquired through sale-leaseback transaction.
Specifically, the investments comprised two high-quality food manufacturing facilities in the Midwest, aggregating in excess of 350,000 square feet. The facilities comprise the tenant's entire manufacturing footprint. Being a critical infrastructure, the tenant has been making investments in the properties, with the most recent being the completion of a more than $40-million expansion at one of the facilities.
The move is a strategic fit as it adds a leading food manufacturer to W. P. Carey’s tenant roster. The tenant has an operating history of more than 40 years, and provides both contract manufacturing as well as private label solutions. Its customer base includes more than 130 customers and comprises a number of the top 25 U.S. grocers.
Moreover, with the assets master leased on a triple-net basis for 25 years, with fixed annual rent escalations, the investments ensure a steady cash flow. The asset class is, in fact, witnessing high demand and the latest move reflects the company’s ability to secure accretive transactions efficiently. Meanwhile, the sale-lease back move provides the tenant additional capital for reinvestment in its core business.
With a high-quality portfolio of critical commercial real estate, diversified net lease REIT, W. P. Carey is well poised to navigate through the current challenges of the real estate market. The company focuses on investing in high-quality single-tenant industrial, warehouse, office, retail and self-storage properties, which it leases on a long-term basis, with built-in rent escalators.
W. P. Carey currently carries a Zacks Rank #3 (Hold).
In the past six months, shares of the company have outperformed the industry. While the stock has appreciated 12.3%, the industry has rallied 11.9% during this period. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Alpine Income Property Trust, Inc.’s PINE funds from operations (FFO) per share estimate for 2020 has been revised 2.6% upward to $1.18 over the past month. It currently carries a Zacks Rank of 2.
Prologis, Inc.’s PLD FFO per share estimate for the ongoing year moved marginally north to $3.73 over the past week. The company currently carries a Zacks Rank of 2.
Duke Realty Corporation’s DRE Zacks Consensus Estimate for the current-year FFO per share moved up 2.8% to $1.49 over the past two months. The company currently holds a Zacks Rank of 2.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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