Dear Fellow Shareholders

I founded W. P. Carey 38 years ago with a focus on creating investment opportunities that work in good times and in bad. We have stood resolute in following the same, conservative approach to risk management ever since, and that has enabled us to weather and actually become stronger during storms that have thrown others off course.

As a fellow investor, I am sure you have come to know that our focus on generating cash flow has enabled us to increase the distributions we pay each quarter. I hope you are as pleased as I am that W. P. Carey has again increased its quarterly cash distribution, this time to $0.512 per share for the quarter ended March 31, 2011, marking the Company's 40th consecutive quarterly distribution increase. That is a decade of consistently rising income: 40 quarters, 40 increases. I am particularly proud that we were able to produce these increases during one of the most volatile economic periods in American history.

Cumulative Total Return Comparison 2005-2010

$100 invested in W. P. Carey & Co. common stock on December 31, 2005, with dividends reinvested, would have appreciated in five years to $177-a 15.5% average annual increase, compared with 2.4% for the S&P 500 Index and 3.2% for the FTSE NAREIT Equity REITs Index.

Sources: Bloomberg; www.reit.com; www.standardandpoors.com

Past performance is no guarantee of future results.