When you’re looking for a millionaire-maker REIT, there’s a good chance you’re trying to find the little guy that has all of the pieces in place to explode. You may think the large-cap REITs are reserved for the safe, steady side of a portfolio. Could W.P. Carey (NYSE: WPC) be an exception to that rule?
W.P. Carey is the largest of the diversified Real Estate Investment Trusts (REITs) and also one of the highest dividend-paying ones. Even though it’s already well established with an impressive portfolio, there may be a window to get in and ride this one to the next level. We’ll dig in to see if W.P. Carey is a millionaire-maker REIT.
W.P. Carey’s management team has done an impressive job building a solid portfolio over the past 47 years. They’ve been strategic in keeping the company’s portfolio well-diversified between property types and geography.
The REIT owns 1,216 properties that are occupied by 352 tenants. These tenants bring in a total of $1.1 billion in annual base rent, with 30% of that rent coming from investment-grade tenants. If that’s not impressive enough, the REIT has an occupancy rate of 98.9%, with a weight average lease term of 10.7 years. Only 15% of its annual rent is tied to leases that are expiring within the next five years.