Skip to main content
No. of Recommendations: 2
This REIT Is Playing by Its Own Rules -- and Winning

W.P. Carey does things its own way, and always has. Here's why that's been a winning formula for investors.

By Reuben Gregg Brewer

W.P. Carey (NYSE:WPC) is a net lease real estate investment trust (REIT), much like the better-known Realty Income (NYSE:O). But while there are material similarities between the two companies, there are also a number of very important differences -- and the differences that set Carey apart might also make it a far more attractive income stock for some investors. Here's how Carey plays by its own rules, and why that may be just right for your portfolio.
The net lease thing

Realty Income and Carey, along with many other net lease companies, own properties for which lessees pay most of the operating costs. It's a fairly low-risk business that's often more like a financing transaction than a typical rental arrangement. In fact, it's normal for a company with property to sell it to an REIT like Carey and then instantly rent it back under a long-term lease.

Read on:

No position in WPC yet, but I like the dividend yield and the dividend growth record of WPC.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.