W. P. Carey (WPC) is a REIT that operates in an attractive, low-risk niche of the industrial real estate sector. The company has generated solid growth in the past, and should be able to grow its funds from operations going forward as well. It offers reliable dividend growth and an attractive dividend yield of close to 7%, while shares also have upside potential of up to 50% over the next couple of years. The combination of these factors makes WPC worthy of a closer look.
Compared to its peers in the triple-net space, WPC has a below-average valuation (in terms of cash flow and EV/EBITDA), while also providing an above-average dividend yield. Last but not least, its valuation is on the lower end of the 5-year range, whereas many of its peers are trading above the historical valuation median.