W. P. Carey: A New Growth Strategy Comes With Trade-Offs

W. P. Carey is trading near fair value, with a current AFFO multiple of 14.56x and resilient total returns driven by disciplined growth. WPC delivered 2025 AFFO of $4.97, exceeding guidance, and projects 2026 AFFO growth of 6.3% at the midpoint, supporting a 4.5% dividend increase. Portfolio growth is fueled by high net-investment spreads, though recent acquisitions have slightly reduced tenant quality and CPI-linked lease exposure.