Why W. P. Carey Stock Slumped Nearly 11% in October

Shares of W. P. Carey (NYSE: WPC) tumbled 10.6% in October, according to data provided by S&P Global Market Intelligence. Weighing on the real estate investment trust (REIT) were its third-quarter results, a potential tenant issue, and an unexpected rise in government bond rates. W. P. Carey reported its third-quarter results last month, which declined due to the impact of property sales. The diversified REIT has sold or spun off its entire office property portfolio over the past year. On top of that, one of its top tenants exercised its option to repurchase the portfolio of self-storage properties it had been leasing from the REIT. As a result, W. P. Carey's adjusted funds from operation (FFO) per share declined by 10.6% in the third quarter. The REIT also got some potentially bad news from a leading tenant last month. True Value filed for bankruptcy in October. The home improvement retailer leased nine properties from the REIT, contributing 1.4% of its annual base rent (its 15th largest tenant). True Value was current on its rent and had agreed to sell substantially all its business to Do It Best. However, the bankruptcy added some uncertainty about the future rental payments on these properties. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool