Back to top

Analyst Blog

W. P. Carey Inc. (WPC - Snapshot Report), a real estate investment trust (REIT), through its affiliates, acquired the State Farm Operation Center from State Farm Mutual Automobile Insurance Company in Austin, Texas.

It was made through a sale-lease back deal for $110 million plus transaction costs. Leased to State Farm for an initial term of 15 years, this facility spans 448,898 square foot on 83.5 acres in AmberOaks Corporate Center.

Serving since 1994 as State Farm's Operation Center, this Class A office property enjoys locational advantage for being positioned in a vibrant metro area that is among the top performing ones in the nation. Also, the deal is made with State Farm - an AA credit rated tenant – that indicates a superior rent paying ability of the tenant.

Earlier this month, W. P. Carey reported second-quarter 2013 funds from operations (FFO) of 77 cents per share, exceeding the Zacks Consensus Estimate of 71 cents by nearly 8.5% and the year-ago quarter FFO per share of 53 cents by 45.3%. It acquired 3 properties for around $113 million and structured $305 million of investments on behalf of the managed REITs during the quarter.

The company also made a 2.4% sequential hike and a 48% year-over-year increase in the quarterly dividend rate to 84 cents per share. This also represents the company’s 49th consecutive quarterly increase.

W. P. Carey provides long-term sale-leaseback and build-to-suit financing for companies worldwide and manages an investment portfolio of approximately $15.4 billion. The company primarily invests in commercial properties that are generally leased to corporate tenants. Following the second-quarter end, the company disclosed a merger agreement with Corporate Property Associates 16 – Global Incorporated.

W. P. Carey currently carries a Zacks Rank #3 (Hold). However, other REITs that are performing better and deserve a look include Douglas Emmett Inc. (DEI - Snapshot Report), Highwoods Properties Inc. (HIW - Analyst Report) and RLJ Lodging Trust (RLJ - Snapshot Report), all carrying a Zacks Rank #2 (Buy).

Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%
STRATTEC SE… STRT 80.24 +3.00%