W.P Carey stock price has nosedived: don’t buy the dip for now

on Sep 26, 2023
  • W.P Carey share price has been in a freefall in the past few months.
  • The sell-off continued after the company announced its office spin-off.
  • The stock faces numerous short-term headwinds as sentiment sour.

Follow Invezz on Telegram, Twitter, and Google News for instant updates >

W.P Carey (NYSE: WPC) stock price has been in a strong freefall in the past few months. This sell-off gained steam this month when the company made huge changes to its business and effectively slashed their dividend. The stock plunged to a low of $53.98 on Tuesday, the lowest level since November 2022. 

Avoids being a dividend aristocrat

Copy link to section

W.P Carey is a big REIT, currently valued at over $12 billion. It has been a dependable company for its shareholders for decades. In fact, the company has historically raised its dividends for more than 24 years straight.

Therefore, investors were caught off-guard when the company delivered major news this month. The restructuring plan calls for spinning off its office portfolio into a separate company. 

The remaining company will have a portfolio of projects in the industrial, warehouse, retail, and self-storage. This business has an occupancy rate of 99.3%. Its biggest tenants are U-Haul, Apotex, and Metro.

To a large extent, this move makes sense since the office industry is going through major headwinds. Vacancy rates are rising while a wall of maturities is nearing. Also, the industry is not growing as fast as it did.

Featured Broker

Looking to invest?

Invest and trade CFD stocks, ETFs, digital assets & commodities in minutes with our highest-rated broker.


As part of the turnaround strategy, W.P. Carey decided to reset its dividend policy by targeting a pro forma AFFO payout ratio of between 70% and 75%. It also aims to generate $735 million from the spin-off. 

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.

Therefore, the question among investors is whether it makes sense to buy the WPC stock dip, Besides, the company has become highly undervalued. The spin-off will also remove the baggage of its office space business, which has contributed to its recent stock sell-off.

Therefore, I believe that W.P Carey will be a good company to invest in once the current overreaction phase ends. The company will have a chance to restart its dividend growth. It will also attract a higher valuation multiple after getting rid of its office business.

W.P Carey stock price forecast

Copy link to section
W.P Carey stock

The weekly chart shows that the WPC share price formed a double-top pattern at $83.54. In price action analysis, this pattern is one of the most accurate bearish signs. It has now dropped below the key support at $65.20, the lowest level in October.

Now, the stock is about to form a death cross, where the 50-week and 200-week moving averages. The MACD has moved below the neutral point. Therefore, the shares will likely continue falling as sellers target the next key support at $43.23. 


Copy expert traders easily with eToro. Invest in stocks like Tesla & Apple. Instantly trade ETFs like FTSE 100 & S&P 500. Sign-up in minutes.


77% of retail CFD accounts lose money.

Get demo account
USA Real Estate REITs Stock Market