Dividends4Life: W.P. Carey Is A REIT On Fire

W.P. Carey Is A REIT On Fire

Posted by D4L | Sunday, July 28, 2013 | | 0 comments »

As an early pioneer in the Sale/Leaseback arena, W.P. Carey (and its founder Bill Carey) was instrumental in creating a sustainable platform to unlock value in real estate by investing in companies that own properties leased to corporate occupiers. The owner-occupant of a commercial property sells the asset it owns and occupies by executing a long-term lease with a real estate investor. This structured financing alternative has evolved into an attractive strategy for many corporations to unlock the value of their real estate assets.

W.P. Carey has an undeniable track record for paying dividends, yet I believe the valuation has reached a point where there is not much of a buffer to protect against market fluctuations. In short, I like the business, I like the management and I like the track record. Yet, I'm not sure that this REIT on Fire Can Go Any Higher? It may be an appropriate time to prune and/or redeploy the Carey dividends into more fairly valued REIT shares (like ARCP, GPT, and CSG).

Source: Seeking Alpha

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