Why W.P. Carey Shares Are Falling Today?
Portfolio Pulse from Lekha Gupta
W.P. Carey Inc's (WPC) shares are falling after several analysts lowered the price target on the company. This follows WPC's plan to exit office assets by spinning off 59 properties into Net Lease Office Properties (NLOP) and selling 87 retained properties. The spin-off is expected to close by November 2023 and the sale by January 2024. Analysts have expressed concerns about the timing and execution of the spin-off, expecting the new REIT to trade at a heavily discounted value and foreseeing a dividend reduction of 15%-20%.
September 26, 2023 | 7:32 pm
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W.P. Carey Inc's shares are falling due to lowered price targets by analysts following the company's plan to exit office assets. The spin-off and sale of properties are expected to negatively impact the company's value and dividends.
The company's decision to exit office assets and the subsequent lowering of price targets by analysts have led to a decrease in the company's share price. The spin-off and sale of properties are expected to negatively impact the company's value and dividends, leading to a negative short-term impact on the stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100