CEO of W.P. Carey: ‘We Are Built for a Recession Environment’
June 23, 2023
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W. P. Carey ($NYSE:WPC) Inc. is an independent REIT that specializes in providing long-term, sale-leaseback, net-lease financing and build-to-suit solutions for companies worldwide. In addition to this, W. P. Carey’s financial flexibility is another major strength that allows them to strategically adjust and manage their portfolio under any financial market conditions. Overall, W.P. Carey is well-positioned to face a recessionary period given its resilient model and long-term strategy. The company’s financial flexibility and diversified portfolio of essential businesses helps to protect it from the volatility that occurs during economically challenging times.
Share Price
On Tuesday, W. P. CAREY stock opened at $70.8 and closed at $70.1, down by 0.5% from last closing price of 70.5. These numbers demonstrate that despite economic uncertainty, W.P. CAREY is built for a recession environment and has the agility to ride out turbulence. This message was emphasized by the company’s CEO, who asserted that the company is staying committed to its long-term objectives and strategies despite the short-term market volatility and potential risks. He noted that while the current recession environment may be challenging, the company is well-positioned to take advantage of opportunities and overcome headwinds in the near future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for WPC. More…
| Total Revenues | Net Income | Net Margin |
| 1.56k | 736.52 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for WPC. More…
| Operations | Investing | Financing |
| 1.05k | -1.41k | 329.36 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for WPC. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 18.83k | 9.51k | 43.49 |
Key Ratios Snapshot
Some of the financial key ratios for WPC are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | 45.8% |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis
GoodWhale conducted an analysis of the fundamentals of W.P. CAREY and found that it has a high health score of 7/10, based on its Star Chart. This indicates that W.P. CAREY is in good financial shape, with enough cash flows and debt to sustain future operations in times of crisis. Additionally, we found that W.P. CAREY has strong assets, growth, and profitability, and medium dividend. As such, we classify W.P. CAREY as a ‘cow,’ which is a type of company we assess as having a track record of paying consistent and sustainable dividends. Given this assessment, we believe that investors who are looking for long-term, low-risk investments with consistent cash flows from dividends may be interested in W.P. CAREY. Furthermore, as W.P. CAREY has a strong health score, investors who are looking for a company that is capable of weathering economic downturns may also find it appealing. More…
Peers
It’s one of the largest owners and operators of single-tenant commercial properties in the U.S., with a portfolio that includes office buildings, warehouses, and retail centers. The company’s size and scope give it some advantages over its smaller competitors, but it also faces some stiff competition from some of the other big REITs in the space, including Realty Income Corp, STORE Capital Corp, and Prologis Inc.
– Realty Income Corp ($NYSE:O)
Realty Income Corporation is a publicly traded real estate investment trust that invests in commercial real estate properties in the United States. The company was founded in 1969 and is headquartered in Escondido, California. As of December 31, 2020, Realty Income owned 5,689 properties across 49 states.
– STORE Capital Corp ($NYSE:STOR)
STORE Capital Corp is a real estate investment trust that focuses on acquiring, financing, and owning net-leased properties. The company’s properties are leased to middle market and national retail tenants. As of December 31, 2020, STORE Capital owned 1,847 properties in 48 states.
– Prologis Inc ($NYSE:PLD)
Prologis Inc is a real estate investment trust that owns, operates, and develops warehouses and distribution centers around the world. As of 2022, it has a market capitalization of $94.6 billion. The company’s warehouses are used by a variety of businesses, including e-commerce fulfillment, retail, manufacturing, and logistics. Prologis is one of the largest landlords in the United States and China, and its properties are located in 19 countries across North America, Europe, Asia, and Australia.
Summary
W.P. Carey is a real estate investment trust (REIT) that focuses on diversified investments including long-term net leased industrial, office, and retail properties. According to their CEO, the company is designed to thrive in a recessionary environment, with a focus on capital preservation and risk management, as well as providing attractive returns in any market. This is accomplished by investing in cash flow-generating properties, and through diversification of both sectors and geographic markets.
W.P. Carey also seeks to capitalize on opportunities that arise from changing market conditions. Their approach allows them to create value with their strategic investments and selection of properties, while managing down the risks associated with investing.
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