We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
W.P. Carey Announces Dividend Rise: Is the Hike Sustainable?
Read MoreHide Full Article
Key Takeaways
WPC increased its quarterly dividend by 1.1%, now paying 90 cents per share.
Nearly all base rent stems from leases with contractual hikes, boosting cash flow stability.
WPC holds $2B in liquidity and has repaid half of debt maturing through 2026.
W.P. Carey (WPC - Free Report) recently announced a 1.1% hike to its dividend. WPC will now pay a quarterly cash dividend of 90 cents per share, up from 89 cents paid in the prior quarter. The increased amount will be paid out on July 15 to shareholders on record as of June 30, 2025. Based on the increased rate, the annual dividend comes to $3.60 a share, resulting in an annualized yield of 5.7%, considering WPC’s closing price of $63.36 on June 12.
Solid dividend payouts are arguably the biggest enticement for investment in REIT stocks. However, in December 2023, WPC reduced its dividend to 86 cents from the prior quarter's dividend payment of $1.07. The move resulted from the company’s strategic plan to exit its office assets and maintain a lower payout ratio. Thereafter, it maintained a disciplined capital distribution strategy and started increasing gradually, which is encouraging. Check out W.P. Carey’s dividend history here.
WPC's Dividend Payout: Sustainable or Not?
W.P. Carey has one of the largest portfolios of single-tenant net lease commercial real estate in the United States and Northern and Western Europe. The company invests in assets that are mission-critical for its tenants’ operations. As such, due to the inherent nature of its portfolio, the REIT can generate better risk-adjusted returns due to higher occupancy. The portfolio occupancy as of March 31, 2025, was 98.3%.
Moreover, the portfolio is well-diversified by tenant, industry, property type and geography, aiding steady revenue generation. The existence of rent escalations yields stable cash flows. More than 99% of annualized base rent comes from leases with contractual rent increases, with 49.8% linked to the consumer price index. The company witnessed contractual same-store rent growth of 2.4% in the first quarter of 2025.
W.P. Carey has a healthy balance sheet position with ample liquidity. As of March 31, 2025, the company had a total liquidity of $2.0 billion, including around $1.8 billion of available capacity under its senior unsecured credit facility and $187.8 million of cash and cash equivalents. The company’s share of pro rata net debt to adjusted EBITDA was 5.8X. Per the April business update, with the repayment of $450 million senior unsecured notes, which matured in February 2025, W.P. Carey has repaid around half of its debt set to mature through 2026.
Hence, with solid fundamentals and earnings performance, we expect the latest dividend rate to be sustainable in the long run. Shares of this Zacks Rank #2 (Buy) company have gained 16.3% over the past three months, outperforming the industry’s growth of 4.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Other REITs That Recently Announced Dividend Increases
On June 10, Realty Income Corporation (O - Free Report) , widely known as “The Monthly Dividend Company,” has raised its monthly dividend once again — this time to 26.90 cents per share from 26.85 cents. Though marginal, the increase marks its 131st hike since its 1994 NYSE listing. Payable on July 15 to shareholders of record as of July 1, this results in an annualized dividend of $3.228 and a yield of 5.63% based on the June 10 share price of $57.35. A member of the S&P 500 Dividend Aristocrats index, the REIT boasts 30 consecutive years of dividend growth and 111 straight quarterly increases, underscoring its resilience.
On June 2, Essential Properties Realty Trust, Inc. (EPRT - Free Report) declared a quarterly cash dividend of 30 cents per share for the second quarter of 2025, reflecting an increase of approximately 2% over the prior quarter. The dividend is payable on July 14, 2025, to stockholders of record as of the close of business on June 30, 2025.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
W.P. Carey Announces Dividend Rise: Is the Hike Sustainable?
Key Takeaways
W.P. Carey (WPC - Free Report) recently announced a 1.1% hike to its dividend. WPC will now pay a quarterly cash dividend of 90 cents per share, up from 89 cents paid in the prior quarter. The increased amount will be paid out on July 15 to shareholders on record as of June 30, 2025. Based on the increased rate, the annual dividend comes to $3.60 a share, resulting in an annualized yield of 5.7%, considering WPC’s closing price of $63.36 on June 12.
Solid dividend payouts are arguably the biggest enticement for investment in REIT stocks. However, in December 2023, WPC reduced its dividend to 86 cents from the prior quarter's dividend payment of $1.07. The move resulted from the company’s strategic plan to exit its office assets and maintain a lower payout ratio. Thereafter, it maintained a disciplined capital distribution strategy and started increasing gradually, which is encouraging. Check out W.P. Carey’s dividend history here.
WPC's Dividend Payout: Sustainable or Not?
W.P. Carey has one of the largest portfolios of single-tenant net lease commercial real estate in the United States and Northern and Western Europe. The company invests in assets that are mission-critical for its tenants’ operations. As such, due to the inherent nature of its portfolio, the REIT can generate better risk-adjusted returns due to higher occupancy. The portfolio occupancy as of March 31, 2025, was 98.3%.
Moreover, the portfolio is well-diversified by tenant, industry, property type and geography, aiding steady revenue generation. The existence of rent escalations yields stable cash flows. More than 99% of annualized base rent comes from leases with contractual rent increases, with 49.8% linked to the consumer price index. The company witnessed contractual same-store rent growth of 2.4% in the first quarter of 2025.
W.P. Carey has a healthy balance sheet position with ample liquidity. As of March 31, 2025, the company had a total liquidity of $2.0 billion, including around $1.8 billion of available capacity under its senior unsecured credit facility and $187.8 million of cash and cash equivalents. The company’s share of pro rata net debt to adjusted EBITDA was 5.8X. Per the April business update, with the repayment of $450 million senior unsecured notes, which matured in February 2025, W.P. Carey has repaid around half of its debt set to mature through 2026.
Hence, with solid fundamentals and earnings performance, we expect the latest dividend rate to be sustainable in the long run. Shares of this Zacks Rank #2 (Buy) company have gained 16.3% over the past three months, outperforming the industry’s growth of 4.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Other REITs That Recently Announced Dividend Increases
On June 10, Realty Income Corporation (O - Free Report) , widely known as “The Monthly Dividend Company,” has raised its monthly dividend once again — this time to 26.90 cents per share from 26.85 cents. Though marginal, the increase marks its 131st hike since its 1994 NYSE listing. Payable on July 15 to shareholders of record as of July 1, this results in an annualized dividend of $3.228 and a yield of 5.63% based on the June 10 share price of $57.35. A member of the S&P 500 Dividend Aristocrats index, the REIT boasts 30 consecutive years of dividend growth and 111 straight quarterly increases, underscoring its resilience.
On June 2, Essential Properties Realty Trust, Inc. (EPRT - Free Report) declared a quarterly cash dividend of 30 cents per share for the second quarter of 2025, reflecting an increase of approximately 2% over the prior quarter. The dividend is payable on July 14, 2025, to stockholders of record as of the close of business on June 30, 2025.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.