Broadstone Net Lease And W. P. Carey: Diverging Multiples Create A Compelling Opportunity To Swap
Portfolio Pulse from
Sector rotation in commercial real estate shows industrial making a comeback, while data centers may have peaked, affecting net lease REITs like BNL and WPC. BNL's AFFO multiple has compressed to 10x, while WPC's multiple expanded to 12.5x after strong earnings, creating a valuation gap. BNL and WPC have similar portfolios and metrics, making them direct comparables; BNL's current undervaluation presents a potential 12.5% upside.
February 23, 2025 | 1:45 pm
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NEUTRAL IMPACT
WPC's AFFO multiple expanded to 12.5x after strong earnings, indicating a positive market response. However, the valuation gap with BNL suggests WPC may be overvalued relative to BNL.
WPC's multiple expansion to 12.5x post-earnings indicates strong performance. However, the valuation gap with BNL suggests WPC might be overvalued relative to BNL, making it less attractive in comparison.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 100
POSITIVE IMPACT
BNL's AFFO multiple has compressed to 10x, creating a valuation gap with WPC. This undervaluation presents a potential 12.5% upside, making BNL an attractive investment opportunity.
BNL's AFFO multiple compression to 10x compared to WPC's 12.5x indicates undervaluation. Given similar portfolios, BNL's current price suggests a potential 12.5% upside, making it an attractive investment.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100