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W.P. Carey Cuts Dividend, Promises Faster Growth Ahead
10 Nov
Summary
- W.P. Carey cut its dividend in 2023 after 24 years of increases
- Dividend cut was to focus on industrial, warehouse, and retail assets
- W.P. Carey's Q3 2025 adjusted FFO per share rose 5.9% vs. 2.9% for Realty Income
As of November 10, 2025, the net lease real estate investment trust (REIT) W.P. Carey (NYSE: WPC) has emerged as a top dividend pick, despite cutting its payout in 2023 after 24 consecutive years of increases. The company made this move to exit the office property niche and focus on industrial, warehouse, and retail assets, a strategy that has paid off.
In the third quarter of 2025, W.P. Carey's adjusted funds from operations (FFO) per share rose a healthy 5.9%, compared to just 2.9% for industry bellwether Realty Income (NYSE: O). This performance demonstrates that W.P. Carey's decision to streamline its portfolio has set the company up for faster growth. The REIT has also consistently increased its dividend in the quarters since the initial cut, indicating that the reduction was made from a position of strength.
While Realty Income remains a foundational dividend investment, W.P. Carey is likely to provide more growth opportunities for investors in 2026 and beyond. The company's smaller $14.5 billion market cap means it doesn't take as much investment to move the needle on its top and bottom lines, positioning it well for the future.
