Around 25% of NOI is volatile from investment management, so it would be reckless to take the payout ratio high.
Near $4 AAFO/year is from NNN reits so the payout of 3.82 makes sense.
I believe the recent drop, exacerbated by downgrade is from At the market offering of equity of 400M which is 6%. It has to be done since company issued $1billion in debt roughly earlier this year--they need to reduce leveraged, but timing is poor of course. At least they issued the debt 4-5 months ago and got very low rates b/c the stock has 1% or so higher yield than if they issued equity 6 months ago, but at least the debt was at good rates.
But last time they issued lots of stock was sept 2014--see what the stock did that month--only major down month the entire year.
I believe stock is cratering due to overall reit selloff and then right as market is dumping Reits WPC needs to issue stock.