W. P. Carey Announces Fourth Quarter and Year-End 2009 Financial Results
W. P. Carey Fourth Quarter and Year-End 2009 Financials
New York, NY – February 25, 2010 – Investment firm W. P. Carey & Co. LLC (NYSE: WPC) today reported financial results for the fourth quarter and year ended December 31, 2009.
QUARTERLY AND YEAR-END RESULTS
- Cash flows from operating activities for the year ended December 31, 2009 increased to $74.5 million from $63.2 million for the prior year.
- Adjusted cash flow from operating activities for the year ended December 31, 2009 increased to $93.9 million, compared to $89.4 million for 2008.
- Total revenues net of reimbursed expenses for the fourth quarter of 2009 were $48.2 million, compared to $51.6 million for the fourth quarter of 2008. Total revenues net of reimbursed expenses for the year ended December 31, 2009 were $187.2 million, compared to $197.4 million for 2008. Reimbursed expenses are excluded from total revenues because they have no impact on net income.
- Net income for the fourth quarter of 2009 was $23.0 million, compared to $21.9 million for the same period in 2008. For the year ended December 31, 2009, net income was $69.0 million, compared to $78.0 million for 2008.
- For the fourth quarter of 2009, funds from operations, as adjusted (AFFO), were $33.7 million or $0.83 per diluted share, compared to $33.8 million or $0.84 per diluted share for the same period in 2008. AFFO for the year ended December 31, 2009 was $122.9 million or $3.09 per diluted share, compared to $124.5 million or $3.09 per diluted share for 2008.
- During 2009, we recorded impairment charges of $10.4 million. We currently estimate that our affiliated CPA® REITs will record impairment charges aggregating approximately $170.0 million during 2009, which reduced the amount of income we recognize from these equity investments by approximately $11.5 million for the year. We received approximately $14.2 million in cash distributions from our equity ownership in the CPA® REITs for the year ended December 31, 2009.
- Further information concerning AFFO and adjusted cash flow from operating activities, non-GAAP supplemental performance metrics, is presented in the accompanying tables.
INVESTMENT, FUNDRAISING AND FINANCING ACTIVITY
- Investment volume, for our own portfolio and on behalf of the CPA® REITs, for the year ended December 31, 2009 was $547.7 million, compared to $457.0 million for 2008. International investments comprised 36% of our total investments during 2009, as compared to 46% during 2008, and we expect that international transactions will continue to form a significant portion of the investments we structure.
- In the fourth quarter, we closed four transactions on behalf of the CPA® REITs: a $15.0 million sale leaseback with OBI Group, which is our fourth transaction with this German DIY retailer; a $45.0 million acquisition of US Oncology’s corporate headquarters; a $33.0 million acquisition of Mori Seiki’s North American headquarters; and a $51.0 million sale leaseback with Spanish food retailer Eroski, which was the first tranche of a total $104.0 million transaction that we completed in February 2010.
- We continue to raise investor capital through our latest CPA® REIT offering, CPA®:17 – Global, so that we may take advantage of attractive investment opportunities that we believe are afforded by the current market environment. To date, CPA®:17 – Global has raised more than $850.0 million of its up-to $2.0 billion offering. Generally, our month over month fundraising increased in 2009; we raised $141.5 million in the fourth quarter, which represented an increase of 98%, 41% and 14% over the first, second and third quarters of 2009, respectively.
- We have begun to see some improvements in the financing markets and have been successful on refinancing maturing debt or obtaining financing for new transactions. During 2009, W. P. Carey and our CPA® REITs secured approximately $358.5 million in debt financings, including a $120.0 million loan with the Bank of China, New York Branch for The New York Times Company’s Midtown Manhattan headquarters that was purchased in March 2009.
ASSETS UNDER MANAGEMENT
- W. P. Carey is the advisor to the CPA® REITs, which had real estate assets of approximately $8.0 billion and total assets of approximately $8.4 billion as of December 31, 2009.
- As of December 31, 2009, the occupancy rate of our 14 million square foot owned portfolio was approximately 94%. In addition, for the 92 million square feet owned by the CPA® REITs, the occupancy rate was approximately 97%.
DISTRIBUTIONS
- The Board of Directors raised the quarterly cash distribution to $0.502 per share for the fourth quarter of 2009, marking our 35th consecutive distribution increase. In addition, as a result of an increase in our 2009 taxable income, the Board declared a special distribution of $0.30 per share in the fourth quarter. Both distributions were paid on January 15, 2010 to shareholders of record as of December 31, 2009.
Gordon DuGan, President and CEO of W. P. Carey, said, “During 2009, we were able to raise funds, structure attractive investments, finance acquisitions, refinance maturing debt and effectively manage our existing property portfolios. Consequently, despite the many challenges that continued to impact the markets and our tenants, we succeeded in generating stable cash flow and in turn, continued to pay out increasing distributions to our investors.
“We are excited for the opportunities 2010 holds; with CPA®:17 funds raised now exceeding $850.0 million, we continue to see strong investor preference for long term income producing investments, and as a result, we feel we are well positioned to maintain our role as a leading provider of long term capital to creditworthy corporations and property owners worldwide.”
CONFERENCE CALL & WEBCAST
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Time: Thursday, February 25, 2010 at 1:00 PM (ET)
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W. P. Carey & Co. LLC
W. P. Carey & Co. LLC (NYSE: WPC) is an investment management company that provides long term sale leaseback and build to suit financing for companies worldwide and manages a global investment portfolio approaching $10 billion. Through its CPA® series of income-generating, non-traded REITs, W. P. Carey helps companies and private equity firms unlock capital tied up in real estate assets. The W. P. Carey Group's investments are highly diversified, comprising contractual agreements with approximately 275 long-term corporate obligors spanning 28 industries and 15 countries. http://www.wpcarey.com
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This press release contains forward-looking statements within the meaning of the Federal securities laws. A number of factors could cause the Company's actual results, performance or achievement to differ materially from those anticipated. Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for office and industrial properties; interest rate levels; the availability of financing; and other risks associated with the acquisition and ownership of properties, including risks that the tenants will not pay rent, or that costs may be greater than anticipated. For further information on factors that could impact the Company, reference is made to the Company's filings with the Securities and Exchange Commission.
