W.P. Carey: Rising Rates, Rising Rents W.P. Carey faces significant headwinds from rising interest ...

W.P. Carey: Rising Rates, Rising Rents W.P. Carey faces significant headwinds from rising interest rates, compressing acquisition spreads, and refinancing risks, earning a Hold rating. WPC's CPI-linked leases, covering 49% of same-store leases, offer some insulation, but many are capped, limiting upside from inflation-driven rent growth. Acquisition cap rates have compressed to just below 7.5% while WPC's cost of capital rises, reducing the accretiveness of new deals.