W. P. Carey Inc. (WPC) Stock Analysis and Metrics

Sector: Real Estate Industry: REIT - Diversified CIK: 0001025378

Market Cap 16.39 Bn

P/B 2.02

P/E 35.15

P/S 9.55

ROIC (Qtr) 5.20

Div Yield % 4.88

Rev 1y % (Qtr) 9.45

Total Debt (Qtr) 8.72 Bn

Debt/Equity (Qtr) 1.07

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About

W. P. Carey Inc. (WPC) operates in the commercial real estate industry as a real estate investment trust (REIT), specializing in the acquisition, development, management, and leasing of single-tenant, net-leased properties. The company's diversified portfolio consists of high-quality, operationally-critical commercial real estate assets, primarily located in the United States, Northern and Western Europe, and other regions. W. P. Carey's main business activities involve investing in a wide range of property types, including industrial, warehouse,...

W. P. Carey Inc. (WPC) operates in the commercial real estate industry as a real estate investment trust (REIT), specializing in the acquisition, development, management, and leasing of single-tenant, net-leased properties. The company's diversified portfolio consists of high-quality, operationally-critical commercial real estate assets, primarily located in the United States, Northern and Western Europe, and other regions.

W. P. Carey's main business activities involve investing in a wide range of property types, including industrial, warehouse, retail, office, and self-storage properties. The company generates revenue primarily through lease revenues from its net-leased properties and income from finance leases and loans receivable. By the end of 2023, the company had completed several significant transactions, including the spin-off of 59 office properties into a separate publicly-traded REIT, the implementation of an office sale program, and the acquisition of 16 investments totaling $1.2 billion.

The company's competitive advantages include its diversified portfolio, long-term leases, and high-quality tenants. This enables W. P. Carey to attract and retain desirable tenants, providing a stable source of income while reducing the risk of vacancy and tenant default. Key competitors within the industry include other REITs and real estate investment companies that operate in the commercial real estate sector.

W. P. Carey's customer base includes a diverse range of tenants across various industries, such as retail stores, consumer services, beverage and food, automotive, grocery, healthcare and pharmaceuticals, and more. Some of the company's notable tenants include U-Haul Moving Partners Inc., Mercury Partners LP, State of Andalusia, Apotex Pharmaceutical Holdings Inc., Metro Cash & Carry Italia S.p.A., and Hellweg Die Profi-Baumärkte GmbH & Co. KG.

Among the company's product and service brands are the net-leased properties, which are primarily single-tenant, operationally-critical commercial properties leased to high-quality tenants. The Investment Management segment is a smaller but significant part of W. P. Carey's business, focusing on investment management activities, such as advising managed programs and earning asset management revenue. Other advisory income and reimbursements are also included in this segment.

Investment thesis

Bull case

Operating cash flow of 1.28B provides exceptional 195.59x coverage of minority interest expenses 6.56M, showing strong core operations.
Operating cash flow of 1.28B provides strong 32.14x coverage of stock compensation 39.89M, indicating sustainable incentive practices.
Strong operating cash flow of 1.28B provides 9.12x coverage of SG&A expenses 140.57M, showing efficient operational cost management.
Cash position of 155.33M provides exceptional 23.69x coverage of minority interest expenses 6.56M, indicating strong liquidity.
Operating cash flow of 1.28B provides strong 2.16x coverage of operating expenses 593.74M, showing operational efficiency.

Bear case

Operating cash flow of 1.28B barely covers its investment activities of (960.14M), with a coverage ratio of -1.34, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
Operating cash flow of 1.28B provides thin coverage of dividend payments of (790.03M) with a -1.62 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
Operating earnings of 789.52M show weak coverage of depreciation charges of 537.64M, with a 1.47 ratio indicating high capital intensity and potential reinvestment needs.
High depreciation of 537.64M relative to operating cash flow of 1.28B, which is 0.42x suggests significant maintenance capital requirements affecting free cash flow.
Cash position of 155.33M provides weak coverage of payables of 670.04M, which is 0.23x, indicating potential working capital stress and supplier relationship risks.

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the REIT - Diversified

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	VICI	Vici Properties Inc.	30.39 Bn	11.76	8.24	16.76 Bn
2	WPC	W. P. Carey Inc.	16.39 Bn	35.15	9.55	8.72 Bn
3	BNL	Broadstone Net Lease, Inc.	2.77 Bn	40.51	8.39	2.34 Bn
4	SAFE	Safehold Inc.	1.15 Bn	10.07	2.99	4.59 Bn
5	AAT	American Assets Trust, Inc.	1.13 Bn	20.37	2.60	1.69 Bn
6	ESRT	Empire State Realty Trust, Inc.	0.91 Bn	16.82	1.33	2.06 Bn
7	CTO	CTO Realty Growth, Inc.	0.60 Bn	6,383.33	35.13	0.60 Bn
8	GNL	Global Net Lease, Inc.	0.57 Bn	11.86	2.57	2.93 Bn

Industry comparisons

Current Valuation	Value	Ind Avg
EV to Assets EV to Assets	1.38	0.68
EV to Cash from Ops. EV/CFO	19.36	-30.44
EV to Debt EV to Debt	2.85	1.31
EV to EBIT EV/EBIT	31.45	52.23
EV to EBITDA EV/EBITDA	17.66	6.51
EV to Free Cash Flow [EV/FCF] EV/FCF	34.77	21.01
EV to Market Cap EV to Market Cap	1.51	6.71
EV to Revenue EV/Rev	14.46	9.65
Price to Book Value [P/B] P/B	2.02	0.98
Price to Earnings [P/E] P/E	35.15	385.22

Dividend Metrics	Value	Ind Avg
Dividend Coverage Ratio Div Coverage (Qtr)	0.59	-1.16
Dividend Payout Ratio % Div Payout % (Qtr)	171.60	90.61
Dividend per Basic Share Div per Share (Qtr)	3.62	1.00
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr)	111.80	-0.65
Interest Coverage Int. cover (Qtr)	2.71	0.73

Growth Metrics	Value	Ind Avg
Capex Growth (1y) % Capex 1y % (Qtr)	33.50	-246.98
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr)	-75.74	49.26
Dividend Growth (1y) % Div 1y % (Qtr)	3.72	2.40
EBIAT Growth (1y) % EBIAT 1y % (Qtr)	2.58	-20.77
EBITDA Growth (1y) % EBITDA 1y % (Qtr)	8.65	-2.00
EBIT Growth (1y) % EBIT 1y % (Qtr)	2.55	-20.80
EBT Growth (1y) % EBT 1y % (Qtr)	1.16	-13.26
EPS Growth (1y) % EPS 1y % (Qtr)	0.96	-38.39
FCF Growth (1y) % FCF 1y % (Qtr)	-27.03	-62.73
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr)	9.57	-1.85

Liquidity Ratios	Value	Ind Avg
Asset Utilization Ratio Asset Util Ratio (Qtr)	0.10	0.11
Cash Payout Ratio Cash Payout (Qtr)	0.43	0.34
Cash Ratio Cash Ratio	0.00	0.00
Current Ratio Current Ratio	0.00	0.00
Debt to Equity Ratio Debt/Equity (Qtr)	1.07	0.82
Interest Cover Ratio Int Coverage (Qtr)	2.71	0.73
Times Interest Earned Times Interest Earned (Qtr)	2.71	0.73

Profitability	Value	Ind Avg
EBITDA Margin % EBITDA Margin % (Qtr)	77.30	38.58
EBIT Margin % EBIT Margin % (Qtr)	46.00	10.26
EBT Margin % EBT Margin % (Qtr)	29.03	-13.89
Gross Margin % Gross Margin % (Qtr)	93.40	59.91
Net Profit Margin % Net Margin % (Qtr)	27.20	-17.09

Research Tools

W. P. Carey Inc. (NYSE: WPC)

About

Investment thesis

Bull case

Bear case

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Industry comparisons

Research Tools

W. P. Carey Inc. (NYSE: WPC)

About

Investment thesis

Bull case

Bear case

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Industry comparisons

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