BofA Raises W. P. Carey (WPC) Price Target as Net Lease Investment Activity Remains Strong
W. P. Carey Inc. (NYSE:WPC) is included among the 14 Best Real Estate Stocks to Buy According to Hedge Funds.
On February 17, BofA raised its price recommendation on W. P. Carey Inc. (NYSE:WPC) to $72 from $63. It reiterated an Underperform rating on the stock. The analyst said the firm had updated its price targets across the triple-net REIT sector following fourth-quarter results. The firm noted that acquisition activity remained strong in Q4, while most net lease REITs were still targeting investment spreads in the 100–150 basis point range. It also pointed out that higher investment activity could create potential upside to current guidance.
Speaking during the company’s Q3 2025 earnings call, President and CEO Jason Fox said 2025 had been an exceptional year for W. P. Carey, driven by consistent execution across its platform. He noted that the company delivered solid financial results and strengthened its position for long-term growth. Fox highlighted several milestones, including 5.7% growth in AFFO, record investment activity, industry-leading rent growth, and a total shareholder return of 25%. He added that the company was well-positioned to carry that momentum into 2026, supported by a strong pipeline of deals, continued access to favorable capital, expected rent increases, and stable tenant credit quality.
Fox also said the company completed a record $2.1 billion in investments during the year. These deals came with a weighted average initial cash cap rate of 7.6% and an average yield slightly above 9%, with lease terms averaging 17 years. He noted that industrial and warehouse properties made up the majority of activity, accounting for 68% of total investments, while retail represented 22%. Geographically, he said 26% of investments were made in Europe, with the remaining 74% focused on North America.
He also pointed to the company’s $322 million investment in Life Time Fitness properties, which became its third-largest tenant based on annual base rent. In addition, Fox said W. P. Carey had officially launched its Carey Tenant Solutions platform. He explained that the platform had already completed $50 million in projects, with another $290 million underway, and was expected to play a larger role in future growth through build-to-suit developments, expansions, and redevelopment opportunities.
W. P. Carey Inc. (NYSE:WPC) operates as a net lease real estate investment trust, owning a diversified portfolio of commercial properties. Its portfolio includes 1,662 net lease properties spanning about 183 million square feet.
Disclosure: None.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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