W. P. Carey Receives Upgraded Price Target Ahead of Earnings

Investor attention is fixed on W. P. Carey Inc. as the real estate investment trust prepares to release its full-year 2025 financial results. The upcoming report, scheduled for February 10th, follows a significant strategic repositioning, with the market keen to assess the early returns from the company's shift toward industrial properties.

Analysts are forecasting fourth-quarter earnings per share (EPS) of $1.25, with revenue projected to reach approximately $433.3 million. These figures cap a transitional year defined by a substantial portfolio overhaul.

In 2025, the company's management channeled $2.1 billion into new acquisitions, predominantly within the industrial and logistics real estate sector. These purchases were made at an average initial yield of 7.6%. Concurrently, W. P. Carey divested $1.5 billion in assets. A major component of this sell-off was the $785 million sale of its self-storage facilities, completing a strategic exit from that business line.

Analyst Sentiment Shifts

In a recent move, Scotiabank revised its outlook on the REIT, lifting its price target from $67 to $72 per share. The firm maintained its "Sector Perform" rating on the stock. The updated assessment comes just days before the company discloses its Q4 and annual performance data after the market closes on Tuesday.

Should investors sell immediately? Or is it worth buying W P Carey?

The stability of earnings following the portfolio transformation will be a key focus. Of particular interest will be the contribution of the newly integrated industrial assets to operational results. Management will host a conference call on the morning of February 11th to discuss the detailed financial statements and provide guidance for the new fiscal year.

Portfolio Health and Shareholder Returns

W. P. Carey's property portfolio, which currently consists of 1,662 assets, reported an occupancy rate of 97.0%. A slight decrease was attributed to scheduled tenant transitions.

Despite the year of change, the company continued to return capital to shareholders. In mid-January, a quarterly dividend distribution of $0.92 per share was paid, representing a 4.5% increase compared to the same period last year. On an annualized basis, the dividend stands at $3.68 per share.

The forthcoming earnings release will provide critical evidence on whether the strategic investments in logistics and warehouse spaces are beginning to yield the intended financial benefits.