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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (73680)	9/21/2023 12:51:22 PM
From: E_K_S	Respond to of 78822

W. P. Carey Announces Strategic Plan to Exit Office Large Majority of Office Portfolio to be Spun-Off into a Separate Publicly-Traded REIT On-Balance Sheet Office Sale Program Implemented to Exit Remaining Office Assets byJanuary 2024 Assets Representing Over Half of Office Sale Program ABR in the Advanced Stages of a Sale or Sold NEW YORK,Sept. 21, 2023/PRNewswire/ -- W.P. Carey Inc.(W. P. Carey, NYSE: WPC) today announced that its Board of Directors has unanimously approved a plan to exit the office assets within its portfolio by (i)spinning-off 59 office properties into Net Lease Office Properties("NLOP"), so that it will become a separate publicly-traded REIT(the "Spin-Off"), and (ii) implementing an asset sale program to dispose of 87 office properties retained by W. P. Carey(the "Office Sale Program"). The Spin-Off is expected to close on or around November 1, 2023, subject to the satisfaction of certain conditions, and all sales under the Office Sale Program are targeted to be completed by January 2024.

To: Paul Senior who wrote (73680)	9/21/2023 12:58:36 PM
From: E_K_S	Respond to of 78822

REITs and the cost to build I know REITs are leveraged and impacted by the interest rates BUT it is expensive to do new construction too. Because of inflation, cost of materials & labor, it may/could be 35% more to do new construction (or more). So my thinking is if Office and/or Commercial buildings are having problems w/ tenants, to build new is out of the question. Many REITs are looking for long term tenants and will build/remodel to suit. A specific example is Kaiser Hospitals. They will sign a 20 year lease (w/ inflation raises based on COLA) but these buildings have to be modified according to their specific needs/uses. What will happen top the old vacant Office buildings? That has yet to be determined. Could be an opportunity for a developer.