Why W. P. Carey Stock Slumped 17.1% in 2023
Shares of W. P. Carey (NYSE: WPC) tumbled by 17.1% in 2023, according to data provided by S&P Global Market Intelligence. Several factors weighed on the real estate investment trust (REIT), including its decision to swiftly exit the office sector and reset its dividend.
W. P. Carey caught its investors off guard last year. The diversified REIT had been steadily reducing its exposure to the office sector over the past several years by investing in other sectors (primarily industrial and retail) and selling select office properties when the opportunity arose.
However, the REIT decided to accelerate its exit from the office sector in late September. It launched a two-part strategy to eliminate its exposure to offices by early this year. In early November, it spun off some of its office properties to shareholders by forming a new REIT, Net Lease Office Properties. The company put its remaining office properties up for sale, and hopes to close those sales by early this year.
Source Fool.com
