$WPC-2.2% is down more than 7% today on news that the board has approved a plan to exit office assets within its portfolio.
This plan includes:
1) Spin-off into a separate publicly traded REIT, with 59 office properties to be transferred to Net Lease Office Properties (NLOP).
2) Sale of office assets: 87 office properties will remain owned by $WPC-2.2% and will be sold by January 2024.
The report also mentioned a "dividend reset", which has investors fearing a potential dividend cut (see image below).
I am attaching a link to the presentation:
https://s29.q4cdn.com/223055717/files/doc_presentations/2023/09/W-P-Carey-Strategic-Office-Exit-Presentation.pdf
I was very interested in WPC. However, I have mixed feelings about this news and will wait a while to buy.
I'm waiting too, but I trust management to know what they're doing.
I also trust this company and hope that everything will be fine again.
Well, the direction of the price is unfortunately clear to me. Next stop is probably the covid bottom...
I for one am very glad for the second chance to buy when I wasn't in the market during the covid. So hopefully still down. 😃
So what do they primarily want to focus on?
It seems that the rest of the portfolio, mainly industrial, retail and warehouse.
So hopefully they'll make it :)
Well I've just finished reading it as well and I'm so confused, on the one hand it's probably a good thing because this sector is losing money, offices just don't fill up that much anymore, on the other hand, some income has certainly benefited, so I don't know what to think? 🤔 ...I'm curious for opinions.
They say the market is always right. It is not always true, but here I also feel a certain scepticism, I see it as a reduction in diversification. Taking away the dividend aristocrat title would remove WPC from some ETFs/funds, which is not entirely good. I guess it depends on how much we trust management. Also, I'd love to hear the opinions of others.
Exactly, well, I still don't know what to make of it. I hope and believe in management that this is a well thought out move to "lighten up". I understand that the office leasing business is dying and probably will continue to, so why have it in the portfolio. Hopefully this will bring the recovery that will be needed in the future as now the price reaction to this will certainly be a decline. For now I will wait for further news and if only when it materialises I will buy in as and when it happens.