Site icon Forex trading portal #1

W.P. Carey exits office market as demand declines due to 'work from home' trend

Takeaways

The collapse in demand for commercial office space following the pandemic-related increase in “work from home” (WFH) led W.P. Carey (WPC) to exit this business segment. The real estate investor announced that its board of directors has unanimously decided to exit the market by spinning off or selling all office assets in its portfolio.

The plan calls for 59 of the properties to be placed in Net Lease Office Properties (NLOP), a separate publicly traded real estate investment trust (REIT), with the remaining 87 put up for sale. As of June 30, W.P. Carey owned 1,475 net lease properties and 85 self-storage facilities.

The spin-off should have takes place around November 1, while the sale is scheduled for January 2024.

CEO Jason Fox said that in taking these steps, W.P. Carey will “enhance the overall quality of our portfolio, improve the quality and stability of our earnings and progressively benefit our credit profile.” He added that the company will achieve a lower cost of capital and be better positioned to create long-term value for investors.

Actions of W.P. Carey fell nearly 8% on Thursday following the news, falling to its lowest level in more than three years.

TradingView

Do you have a news tip for news journalists #39;Investopedia? Please email us at tips@investopedia.com

Source: investopedia.com

Exit mobile version