Jason Fox, CEO of W.P. Carey (NYSE:WPC) Wants You to Know that Publicly Traded Real Estate Is an Inflation Hedge

April 26, 2018

Jason E. Fox was appointed Chief Executive Officer of W. P. Carey Inc. in January 2018, and also serves as a member of the company’s board of directors. Prior to his current position, Mr. Fox served as President from 2016 to 2017, Head of Global Investments from 2015 to 2016, and Co-Head from 2011 to 2015. During his tenure, Mr. Fox has been responsible for more than $10 billion of acquisitions. Transactions he has closed since joining W. P. Carey Inc. include the $225 million acquisition of The New York Times headquarters in Manhattan and the $312 million acquisition of 78 retail self-storage and truck rental facilities operated under the U-Haul brand name.

In his exclusive interview with the Wall Street Transcript, Mr. Fox details his firm’s ability to weather the U.S. yield curve changes:

“I think one of the important features of our portfolio is that 99% of the ABR comes from leases with some form of built-in rent increase. In addition to 27% coming from leases with fixed rent bumps, which are typically in the 2% to 3% range, we generate close to 70% of ABR from leases with rent increases tied to CPI. We think this is among the highest for net lease REITs, and we believe it makes us one of the best-positioned REITs to benefit from rising inflation going forward, something that we think is underappreciated by the market…”

Jason Fox is not afraid to make the market calls that he needs in order to maximize the value of W.P. Carey:

TWST: Last year the company was a net seller. Why was that, and what was your disposition strategy?

Mr. Fox: Yes, in 2017 we felt the sustained strength of the commercial real estate markets in both the U.S. and Europe positively impacted the value of our existing portfolio and provided us a favorable environment for dispositions. In fact, I think we’ll look back at 2017 as a period of peak pricing for the current cycle.

Read the complete interview in the Wall Street Transcript and get the details on where real estate valuations and yields are going in the United States.