This Nearly 6.5%-Yielding Dividend Stock Made $1.6 Billion in Acquisitions in 2024, Setting the Stage for More Dividend Growth in 2025

In the ever-evolving world of investing, it's crucial to keep an eye on companies that are not only performing well but also have a clear vision for future growth. One such company that has caught our attention is W.P. Carey (WPC), a diversified real estate investment trust (REIT) that has been making waves in the industry. In 2024, W.P. Carey made a whopping $1.6 billion in acquisitions, setting the stage for more dividend growth in 2025. Let's dive into the details and explore what makes this REIT an attractive investment option.



W.P. Carey's acquisition strategy in 2024 was focused on specific industries and geographies. The company concentrated on buying industrial real estate, which accounted for 60% of its investment volume, with retail properties being the next highest at 30%. It also focused on North America, where 75% of its investment volume was made, compared to 25% in Europe. This strategic approach allowed W.P. Carey to acquire high-quality properties leased to strong tenants, with long-term leases featuring rental escalation clauses that will provide the company with incremental income growth in the coming years.

One notable acquisition was a 1.1 million-square-foot U.S. battery factory leased to Canadian Solar for roughly $100 million. The factory has a net-net-net (NNN) lease with 12.4 years remaining on the term and an escalation clause, which will provide the company with steady income growth over time. Similarly, the company bought a 209,000-square-foot data center in the U.S. that's triple-net leased to a subsidiary of Brookfield Infrastructure with a remaining term of 11.1 years (and built-in rent escalators) for around $100 million.



W.P. Carey's acquisition strategy in 2024 significantly contributed to its dividend growth potential in 2025. The company invested a total of $1.6 billion into new properties throughout the year, with a strong focus on industrial real estate and North America. This strategy enabled the company to acquire high-quality properties with long-term leases featuring rental escalation clauses, which will provide the company with steady income growth over time.

In addition to its acquisitions, W.P. Carey's divestment of non-core properties played a significant role in funding its 2024 acquisitions and future growth. The REIT used the proceeds from these sales to invest in new properties, totaling $1.6 billion in 2024. This strategic move allowed W.P. Carey to rebuild its portfolio, fund acquisitions without issuing new stock, and position itself for continued growth in 2025 and beyond.

W.P. Carey's strong finish to the year, with a record fourth-quarter investment volume of $845 million, set it up for more growth in 2025. The company's best-in-class rent escalation and its ability to continue making investments this year position it to grow its adjusted funds from operations (FFO) and dividend in 2025.

In conclusion, W.P. Carey's acquisition strategy in 2024, coupled with its divestment of non-core properties, has set the stage for more dividend growth in 2025. With a focus on industrial real estate and North America, the company has acquired high-quality properties with long-term leases featuring rental escalation clauses, which will provide the company with steady income growth over time. As an investor, keeping an eye on W.P. Carey's progress and considering its dividend-paying potential can be a smart move in the ever-evolving world of investing.