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Rickie Reeve
@rickiereeve · Sep 21

$WPC 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 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

BC
Bill Combs @billcombs Sep 23

I was very interested in WPC. However, I have mixed feelings about this news and will wait a while to buy.

RR
Rickie Reeve @rickiereeve Sep 23

I'm waiting too, but I trust management to know what they're doing.

AA
Ashraf Aboudar @ashraf_dd Sep 23

Well, the direction of the price is unfortunately clear to me. Next stop is probably the covid bottom...

RR
Rickie Reeve @rickiereeve Sep 23

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. 😃

DD
Daniela Duong @danieladuong Sep 22

So what do they primarily want to focus on?

RR
Rickie Reeve @rickiereeve Sep 22

It seems that the rest of the portfolio, mainly industrial, retail and warehouse.

MD
Monday Dayton @mondaydayton Sep 21

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.

RR
Rickie Reeve @rickiereeve Sep 21

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.