This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Stars Lining Up for W.P. Carey

NEW YORK (TheStreet) -- W.P. Carey (WPC) was founded in 1973 by William Polk Carey, who recognized the inherent value of diversified net lease investment partnerships. The globally diverse REIT has built an enduring platform of reliability by increasing its annual dividend for more than 15 years in a row.

As a pioneer in the sale/leaseback sector, Carey has evolved into a leader in the monetization of corporately-owned real estate. By focusing on globally-diverse triple net leased assets (triple net means that the tenant pays for taxes, insurance and maintenance), Carey has been able to exploit its successful track record and grow its brand of dividend repeatability.

Carey owns 422 properties (39 million square feet) in 10 countries; however, the company intends to acquire a related partnership (known as CPA:16) early this year in a transaction valued at $4 billion, including pro-rata debt. The transaction is expected to add to Adjusted Funds from Operations (or AFFO) per share, and Carey anticipates that the transaction will allow it to increase the combined company's annualized dividend to a minimum of $3.52 per share.

The CPA:16 deal includes 494 properties (47 million square feet) in 15 countries, and the combined companies will result in a massive portfolio of 734 properties (86 million square feet) with 231 tenants in 15 countries.

Carey Achieves BBB Rating from S&P

Last week Standard and Poor's Ratings Services said that it assigned its BBB corporate credit rating to Carey. This investment grade rating reflects the company's "satisfactory" business risk profile characterized by a multinational portfolio of highly occupied net-lease properties with good geographic, industrial and tenant diversification and long average lease terms, Standard & Poor's credit analyst Jaime Gitler said in a news release.

The agency also cited the company's EBITDA-generating investment management business, and said that its portfolio will nearly double in size in the first quarter of 2014 pro forma from its planned merger with CPA:16.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs