As I’m sure many of us are aware of by now, one of my favorite REITs, W.P. Carrey, recently made a major announcement regarding their business. On the 21st, the newly crowned dividend aristocrat released a statement regarding its property portfolio that’ll have a significant impact on this company’s future. It was unexpectedly announced by the company that they had made the decision to completely and immediately exit the office sector. As a result of this decision, the current dividend rate WPC is paying is now likely facing a sizable reduction, as their office properties will now be broken off into an entirely new real estate investment trust.

According to the original press release, “W.P. Carey today announced that its Board of Directors has unanimously approved a plan to exit the office assets within its portfolio by spinning off 59 office properties into Net Lease Office Properties, so that it will become a separate publicly traded REIT and implement an asset sale program to dispose of 87 office properties retained by W.P. Carey. The spin-off is expected to close on or around November 1, 2023, subject to the satisfaction of certain conditions, and all sales under the Office Sale Program are targeted to be completed by January 2024.

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