W. P. Carey Announces Second Quarter Financial Results

W. P. Carey Second Quarter 2010 Financials 

New York, NY – August 5, 2010 – Investment firm W. P. Carey & Co. LLC (NYSE: WPC) today reported financial results for the second quarter ended June 30, 2010.     

QUARTERLY AND SIX-MONTH RESULTS

• Funds from operations—as adjusted (AFFO) for the second quarter of 2010 increased compared to the second quarter of 2009: $38.9 million or $0.98 per diluted share compared to $30.1 million or $0.75 per diluted share, respectively.  AFFO for the six months ended June 30, 2010 was $67 million or $1.69 per diluted share, compared to $59 million or $1.48 per diluted share for the comparable period in 2009. 
• Cash flow from operating activities for the six months ended June 30, 2010 was $36.3 million compared to $34.7 million for the prior year period, while adjusted cash flow from operating activities was $48.2 million in the current year period compared to $50 million in the same period last year.
• Total revenues net of reimbursed expenses for the second quarter of 2010 increased to $55 million from $42.1 million for the second quarter of 2009.  Total revenues net of reimbursed expenses for the six months ended June 30, 2010 were $102.6 million, compared to $92.3 million for the comparable period in 2009.  Reimbursed expenses are excluded from total revenues because they have no impact on net income.
• Net Income for the second quarter of 2010 was $23.4 million, compared to $15 million for the same period in 2009.  For the six months ended June 30, 2010, net income was $37.8 million, compared to $32.7 million for the comparable period in 2009. Results from operations in our investment management segment were significantly higher in the current year periods primarily due to a higher volume of investments structured on behalf of the CPA^® REITs and lower impairment charges recognized by the CPA^® REITs in the current year periods. 
• For the six months ended June 30, 2010, we received approximately $8 million in cash distributions from our equity ownership in the CPA^® REITs.
• Further information concerning AFFO and adjusted cash flow from operating activities—non-GAAP supplemental performance metrics—is presented in the accompanying tables and related notes.

INVESTMENT AND FUNDRAISING ACTIVITY

• We structured 11 investments totaling $440 million for the six months ended June 30, 2010 on behalf of the CPA^® REITs, compared to two investments totaling $234 million for the comparable period in 2009.
• Transactions in the second quarter of 2010 on behalf of the CPA^® REITs included: a $101 million transaction with Agrokor, the largest private company and food retailer in Croatia; a $57 million acquisition of JPMorgan Chase’s Tampa office facility; and a $43 million build-to-suit financing transaction with Sun Products Corporation.
• We continue to raise investor capital through our latest 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 $1.1 billion of its up-to $2 billion offering. 

ASSETS UNDER MANAGEMENT

• W. P. Carey is the advisor to the CPA^® REITs, which had real estate assets of $8.2 billion and total assets of $8.6 billion as of June 30, 2010. 
• As of June 30, 2010, the occupancy rate of W. P. Carey’s 14 million square foot owned portfolio was approximately 92%.  In addition, for the 95 million square feet owned by the CPA^® REITs, the occupancy rate was approximately 98%.

DISTRIBUTIONS

• The Board of Directors raised the quarterly cash distribution to $0.506 per share for the second quarter of 2010.  The distribution—our 37^th consecutive quarterly increase—was paid on July 15, 2010 to shareholders of record as of June 30, 2010. 

Trevor Bond, interim Chief Executive Officer, said, “The continued strength of our capital raising activities and our ability to source, negotiate, finance and close long-term, income-generating acquisitions has provided the basis for solid financial results during the first six months of 2010.  Being on the ground in Europe as well as the U.S. has enabled us to access a diverse set of opportunities that are consistent with our established investment parameters.  Consequently, our ability to grow assets under management has favorably impacted funds from operations—as adjusted, a primary metric in determining distributions.”

CONFERENCE CALL & WEBCAST

Please call at least 10 minutes prior to call to register.

Time: Thursday, August 5, 2010 at 11:00 AM (ET)

Call-in Number: 800-860-2442
(International) +1-412-858-4600

Webcast: www.wpcarey.com/earnings

Podcast: www.wpcarey.com/podcast
Available after 2:00 PM (ET)

Replay Number: 877-344-7529
(International) +1-412-317-0088

  Replay Passcode : 442766#
Replay Available until August 20, 2010 at 9:00 AM (ET).

W. P. Carey & Co. LLC
W. P. Carey & Co. LLC (NYSE: WPC) is an investment management company that provides long-term financing to companies worldwide via sale leaseback and build to suit transactions and manages a global investment portfolio of approximately $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 16 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.