Carey's board of directors established its third quarter 2012 cash distribution at 65% per share, which equates to an annualized rate of $2.60 per share and a 15% increase over the previous quarter. The cash dividend is payable on Oct. 16, to shareholders of record as of Oct. 2. This marks W. P. Carey's 46th consecutive distribution increase, including its predecessor company.
Bond commented, "We are excited to reach this milestone in W. P. Carey's history. While our disciplined, long-term investment strategy remains the same, as a result of these transactions, we expect that the REIT status, significant increase in real estate under ownership and expected dividend growth will provide our shareholders with a compelling investment and help us further diversify our shareholder base over time, including active and passive REIT investors. With a larger balance sheet and greater flexibility to access capital for growth, we are well positioned to capitalize on new opportunities that are consistent with our established investment parameters and enhance shareholder value."
Carey will continue to manage the Corporate Property Associates (CPA series publicly held, non-traded REITs) and the newly converted REIT will provide meaningful liquidity and broader access to capital.
In addition, I expect that the REIT could receive a lift to its share price in mid-November when the company is added to the MSCI US REIT Index.
William Carey nailed the mantra, "Investing for the Long Haul" and now that the company he founded is officially a REIT, investors will be able to benefit from all of the attributes of being a REIT -- transparency, liquidity and diversification -- while most importantly preserving principal and generating consistent returns on monies invested.
At the time of publication the author held no positions in any of the stocks mentioned.
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.