An affiliate of W. P. Carey Inc. (WPC - Snapshot Report), a real estate investment trust (REIT), has recently acquired three self storage facilities in Tampa, St. Petersburg, and Palm Harbor in Florida for an aggregate of $25 million. Spanning 225,569 square feet, the properties were purchased from Safeguard Self Storage. Post-acquisition, the properties would be managed by Extra Space Storage Inc. (EXR - Snapshot Report).
W. P. Carey expects the acquired assets to provide consistent cash flow owing to its strategic location in a heavy traffic movement region and good visibility in the greater Tampa market. The expertise of the management team is further expected to enhance the profitability of the acquired portfolio.
Earlier in the third quarter of 2012, W. P. Carey acquired five retail stores totaling approximately 74,000 square feet in Virginia Beach, Virginia; Florence, Alabama; Snellville, Georgia; Concord, North Carolina; and Rockport, Texas for $25 million.
W. P. Carey provides long-term sale-leaseback and build-to-suit financing for companies worldwide and manages an investment portfolio of approximately $13.3 billion. The company primarily invests in commercial properties that are generally leased to corporate tenants including office, warehouse, industrial, logistics, retail, hotel, R&D, and self-storage properties. As of September 28, 2012, the owned portfolio of the company included 430 properties comprising 39 million square feet leased to more than 130 corporate tenants.
W. P. Carey currently retains a Zacks #2 Rank, which translates into a short-term Buy rating. We have a long-term Neutral recommendation on the stock. One of its competitors, Lexington Realty Trust (LXP - Snapshot Report) holds a Zacks #3 Rank, which translates into a short term Hold rating.