This High-Yield Dividend Stock's Accelerated Exit Plan Has Dawn Poor Reviews
W. P. Carey (NYSE: WPC) recently surprised the market by unveiling a two-part plan to swiftly exit the office sector. Shares of the diversified real estate investment trust (REIT) have tumbled over 15% since it revealed that plan, which would see it sell off part of its office portfolio while spinning off the rest of the properties into a new office REIT. The company also said it would reset the dividend following the spinoff.
The diversified REIT decided to make the move in hopes of boosting its valuation. However, it has had the opposite effect. Here's why it might not deliver the anticipated benefit.
W. P. Carey owns a diversified commercial real estate portfolio. It has over 1,475 net lease properties in the industrial (29% of its annual base rent), warehouse (24%), retail (17%), office (16%), self-storage (4%), and other (10%) sectors. It also has 85 self-storage properties that it operates.
Source Fool.com
