W.P. Carey vs. Rexford: A Dividend Yield Showdown

Investors weigh W.P. Carey against Rexford Industrial. Both REITs offer distinct benefits, with W.P. Carey providing a higher yield but Rexford boasting stronger growth. The choice depends on whether diversification or growth is a priority.

Date: 12-01-2025

AI Rating: 6

Yield Comparison: The analysis provides a critical comparison between W.P. Carey and Rexford Industrial, two real estate investment trusts focused on industrial assets. W.P. Carey offers a higher dividend yield of around 6.4%, but has experienced a dividend reset due to exiting the office sector after a decline in that market. This reset indicates that the company adapted to market challenges.

Rexford Industrial, however, presents a lower yield of approximately 4.3% but boasts a notable dividend growth rate of 13% over the past decade. This distinction makes Rexford a compelling option for those seeking powerful growth in dividends but lacking in initial yield.

Geographic and Sector Exposure: W.P. Carey has a diversified portfolio across North America and Europe, which spreads risk among various tenants and property types, including 64% focused on industrial assets. Its broad geographic exposure limits risk associated with downturns in specific markets.

In contrast, Rexford is concentrated solely on the Southern California market and is 100% focused on industrial assets, which increases the risk if anything adversely impacts that singular market. However, the strong demand and low vacancy rates in Southern California could mitigate some of this risk.

Investor Consideration: The report suggests that conservative income investors might prefer W.P. Carey due to its higher yield and diversification, while those seeking aggressive dividend growth might find Rexford more attractive due to its past performance. Thus, investment decisions will hinge on individual investors’ risk appetites and priorities.

Stocks: WPC REXR