W. P. Carey Price Target Raised to $72 on Strong Net Lease Activity
Bank of America upped W. P. Carey’s price target to $72 from $63 after reviewing Q4 results, reaffirming an Underperform rating while noting net lease REITs targeting 100–150 bps investment spreads. The firm highlighted record $2.1 billion in 2025 acquisitions at a 7.6% cash cap rate and average yield above 9%.
1. Price Target Raised
On February 17, Bank of America increased its price target on W. P. Carey to $72 from $63 following a sector-wide update after Q4 results, while maintaining an Underperform rating to reflect near-term valuation concerns.
2. Robust Q4 Investment Activity
The firm noted that net lease REITs continued targeting investment spreads of 100–150 basis points, with W. P. Carey delivering record acquisition activity in the fourth quarter and planning to leverage strong deal flow and favorable capital conditions.
3. Record 2025 Investment Metrics and Growth Platforms
W. P. Carey completed $2.1 billion of investments in 2025 at a weighted average initial cash cap rate of 7.6% and average yield above 9%, with 68% of deals in industrial assets and 26% of investments in Europe. The newly launched Carey Tenant Solutions platform has executed $50 million in projects with $290 million underway.
4. 2025 Performance Highlights
President and CEO Jason Fox reported 5.7% AFFO growth and a 25% total shareholder return in 2025, citing a strong deal pipeline, expected rent increases, stable tenant credit quality and continued access to favorable capital as drivers of momentum into 2026.