W. P. Carey Inc. (NYSE: WPC ) ranks among the best real estate and realty stocks to invest in according to hedge funds . On June 18, Citizens reaffirmed its Market Perform on W. P. Carey Inc. (NYSE:WPC), as the real estate investment trust handles the bankruptcy case of Hellweg, its 18th largest client and a European home renovation retail store.
Hellweg was generally among W. P. Carey's top three tenants, but the company's expansion into the industrial market, along with the tenant's decreasing financial health, prompted a lease restructure and asset sales, resulting in rent reductions.
Citizens claimed that W. P. Carey's asset management capabilities allow the company to mitigate the effects of the bankruptcy. Even with the filing, management reiterated guidance, noting that the tenant is good on rental payments through May, with bank guarantees covering three more months of rent. W. P. Carey Inc. (NYSE:WPC) has filled up roughly half of its outstanding Hellweg exposure, and the outlook includes some credit loss assumptions.
W. P. Carey Inc. (NYSE:WPC) is a Maryland-based net lease REIT and one of the largest, with a diversified portfolio of high-quality commercial real estate. Incorporated in 1973, the company has 1,682 net lease properties.
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