W.P. Carey WPC is supported by a large, mission-critical net-lease portfolio in the United States and Europe, with most leases carrying contractual rent escalators and a long average term. Portfolio simplification is progressing as the company exits operating self-storage and recycles proceeds into higher-yielding deals, while liquidity remains ample and the dividend continues to edge higher.
Last month, W. P. Carey delivered first-quarter 2026 AFFO per share of $1.30, topping the Zacks Consensus Estimate by 1.6%. The quarter reflected the accretive impact of net investment activity and contractual rent escalations across the net-lease portfolio.
Analysts seem bullish about this Zacks Rank #2 (Buy) company, with the Zacks Consensus Estimate for its 2026 AFFO per share being revised northward marginally over the past week to $5.26.
Over the past six months, WPC shares have gained 10%, outperforming the industry’s growth of 8.8%.
Image Source: Zacks Investment Research
Factors That Make W.P. Carey Stock a Solid Pick
High-Quality, Mission-Critical Portfolio: W.P. Carey focuses on assets that are mission-critical for tenants and typically structures leases on a long-term, triple-net basis, which shifts most operating costs to the tenant. This model supports steady lease revenues with limited recurring property-level spend. As of March 31, 2026, occupancy stood at 98.1% across 1,703 net-leased properties, reflecting the operational importance of the portfolio to tenants.
Diverse Tenant Base and Contractual Rent Escalators: WPC’s portfolio is diversified by tenant, industry, property type and geography, which helps reduce reliance on any single cash flow stream. As of March 31, 2026, the top 10 tenants represented 18.3% of ABR. The portfolio’s weighted average lease term was 12.1 years, and nearly all ABR carried contractual rent increases, with 49% CPI-linked and 48% fixed increases.
Expansionary Efforts: W.P. Carey has been capitalizing on growth opportunities. From the beginning of the year through April 28, 2026, the company completed $682.0 million of investments. Management raised 2026 investment volume guidance to $1.5-$2.0 billion while keeping disposition guidance at $250-$750 million. Such match-funding efforts indicate the company’s prudent capital management practices and will relieve pressure from its balance sheet, which is encouraging.
Balance Sheet Strength: W.P. Carey has a healthy balance sheet position with ample liquidity. W.P. Carey ended first-quarter 2026 with $2.8 billion of total liquidity. The company’s share of net debt to adjusted EBITDA was 5.7X. It also enjoys investment-grade ratings of BBB+ from S&P Global Ratings and Baa1 from Moody’s, rendering it favorable access to the debt market.
Steady Dividend Payouts: Solid dividend payouts are arguably the biggest enticement for investment in REIT stocks, and W.P. Carey remains committed to them. In March 2026, the company’s board announced a regular quarterly dividend of 93 cents per share, indicating a 1.1% hike from 92 cents paid a quarter ago. Looking at the company’s operating environment and financial position compared to that of the industry, its current dividend is expected to be sustainable in the upcoming period.
Other Stocks to Consider
Some better-ranked stocks from the REIT sector are Lamar Advertising LAMR and Prologis PLD, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Lamar Advertising’s 2026 FFO per share is pegged at $8.63, up 4.48% year over year.
The consensus estimate for Prologis’ 2026 FFO per share is pegged at $6.17, up 6.20% year over year.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Prologis, Inc. (PLD): Free Stock Analysis Report
Lamar Advertising Company (LAMR): Free Stock Analysis Report
W.P. Carey Inc. (WPC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).