W.P. Carey downgraded to Market Perform from Outperform at BMO Capital

BMO Capital downgraded W.P. Carey to Market Perform from Outperform with a price target of $60, down from $75. The analyst is “perplexed” by the timing and execution of W.P. Carey’s announced spin-off of the majority of its office portfolio into a new REIT, NLOP, which the firm believes will likely trade at a “heavily discounted value.” BMO is not convinced the new W.P. Carey will re-rate significantly higher. It does not see a catalyst for the company to meaningfully improve performance in this challenging environment.