W. P. Carey (WPC): Updated 2025 Guidance Sparks Fresh Look at Valuation and Growth Potential

W. P. Carey (WPC) has just tightened and raised its 2025 guidance, now expecting AFFO of $4.93 to $4.99 per share. This update comes as management anticipates more investments and fewer credit-related rent losses.

See our latest analysis for W. P. Carey.

W. P. Carey's updated guidance appears to have reinforced investor confidence this year, with the stock posting a healthy 21.4% share price return so far in 2024 and a 25.3% total shareholder return over the last twelve months. Momentum has picked up notably after a period of choppier performance, as the market responds to signs of greater stability and future growth potential in the company's outlook.

If you're watching how sentiment shifts after strong guidance, it could be the right moment to continue your search and discover fast growing stocks with high insider ownership

The question now is whether W. P. Carey’s momentum and upbeat outlook offer investors a genuine bargain at current levels, or if the market has already priced in the company’s return to growth.

Most Popular Narrative: 4.7% Undervalued

With W. P. Carey's narrative fair value sitting at $69.18, just above its last close of $65.92, analysts suggest the stock still has an edge if projections hold up. Underpinned by evolving lease models and new guidance, the consensus narrative signals the market isn’t fully pricing in expected improved earnings and profitability.

Active balance sheet management, including high spreads (100-150 bps) between disposition and investment cap rates, allows accretive reinvestment from non-core asset sales (e.g., self-storage) into higher-yielding, long-term net lease assets, providing a catalyst for net margin expansion and AFFO growth.

Read the complete narrative.

Want to know what’s powering this valuation? The forecast hinges on ambitious growth in earnings, rising margins, and bold profit targets that only insiders reveal. Curious about what financial leaps analysts are banking on for W. P. Carey? Unpack the full story behind these projections, see what drives the narrative's math and if the market could be missing out.

Result: Fair Value of $69.18 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, risks such as tenant defaults or a slowing property sales market could quickly challenge W. P. Carey's growth story and current valuation optimism.

Find out about the key risks to this W. P. Carey narrative.

Build Your Own W. P. Carey Narrative

If you have a different take or enjoy uncovering the story through your own analysis, you can piece together your own perspective in just a few minutes. Do it your way

A great starting point for your W. P. Carey research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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