W. P. Carey Inc. REIT (WPC)

W. P. Carey leases warehouses and industrial buildings under agreements where the tenant pays for everything.

The model is called net lease: besides rent, the tenant bears taxes, insurance and building upkeep. The owner is left with an almost unchanging stream and no operating concerns, while leases run ten years or more with mandatory annual escalation.

Part of the portfolio is in Europe, where escalation is tied directly to inflation — in high-inflation years that works in the trust's favour. The company exited offices, judging the segment hopeless, and concentrated on warehouses and industrial property. Risks: tenant solvency, interest rates and currency. The trust form obliges distributing profit; the dividend is high.