Scotiabank Lifts W. P. Carey (WPC) Target after Updating REIT Estimates Following Q4 Results

W. P. Carey Inc. (NYSE:WPC) is included among the 15 Best High Dividend Stocks to Invest in Under $100.

Scotiabank Lifts W. P. Carey (WPC) Target after Updating REIT Estimates Following Q4 Results

On March 2, Greg McGinniss of Scotiabank raised the firm’s price recommendation on W. P. Carey Inc. (NYSE:WPC) to $73 from $72. The firm reiterated a Sector Perform rating on the shares. The analyst said the firm updated its price targets for US real estate and REIT stocks under its coverage after fourth-quarter results. Scotiabank believes REITs should raise target development yields and place more emphasis on the near-term impact on funds from operations per share. The firm also noted that external growth through acquisitions offers what it described as a “better thematic story.”

During the fourth-quarter 2025 earnings call, President and CEO Jason Fox said 2025 had been a particularly strong year for the company. He said execution across the business produced solid results and helped establish a foundation for sustainable growth and long-term value creation. Fox highlighted several results from the year. Adjusted funds from operations grew 5.7%. The company also recorded a year of investment activity and posted rent growth that ranked among the strongest in the sector. Total shareholder return for the year reached 25%.

He said the company believes this momentum can continue into 2026. Fox pointed to a healthy pipeline of deals, continued access to accretive capital, expectations for stronger contractual rent growth, and credit quality that has remained stable. Fox also spoke about the company’s investment activity during the year. He said W. P. Carey completed a record $2.1 billion in investments. According to Fox, those investments carried a weighted average initial cash cap rate of 7.6% and an average yield of just over 9%. The leases tied to those investments had an average term of 17 years.

Warehouse and industrial properties represented the largest portion of investment activity. Fox said they accounted for 68% of the total during the year. Retail properties made up 22%. Geographically, about 26% of investment volume came from Europe, while the remaining 74% was in North America.

W. P. Carey Inc. (NYSE:WPC) is a net lease real estate investment trust. The company owns a diversified portfolio of commercial real estate, including 1,662 net lease properties that cover about 183 million square feet.

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