W. P. Carey (NYSE: WPC) ended an era last year. The real estate investment trust (REIT) reduced its dividend by nearly 20%, ending a quarter century of annual increases. It made the move following its decision to enhance its real estate portfolio and financial profile by exiting the office sector and resetting its payout ratio to a lower level.

The REIT believes this transition will pay big dividends in the future. It should put it in the position to grow its adjusted funds from operations (FFO) faster, giving it the fuel to quickly rebuild its dividend (which still yields an attractive 6% after the recent cut). That faster growth should boost the company's valuation, creating more value for shareholders over the long term.

W. P. Carey's management team discussed the company's transitional phase on its recent fourth-quarter conference call. CEO Jason Fox commented:

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Source Fool.com