NEW YORK, NY – February 21, 2001 – W. P. Carey & Co. LLC (NYSE:WPC), a leader in the ownership, net leasing and management of corporate properties, today reported funds from operations (FFO) for the three months ended December 31, 2000 of $21.3 million or $0.62 per diluted share, compared to $13.6 million or $0.53 per diluted share for the comparable three-month period in 1999, an increase of 17% on a per share basis.
FFO for the twelve months ended December 31, 2000 increased to $68 million or $2.28 per diluted share, compared to $52.9 million or $2.07 per diluted share for the twelve months ended December 31, 1999, representing an increase of 10% on a per share basis. FFO is the most commonly accepted and reported measure of operating performance for a real estate investment company.
FOURTH QUARTER HIGHLIGHTS
- Due to the record results generated by the management operation acquired in the merger with W. P. Carey & Co., Inc., FFO per share increased 17% over the same three-month period a year ago.
- The percentage of per share FFO for the three months ended December 31, 2000 required to pay the per share dividend amount for the quarter improved to 67% from 79% for the same three month period a year ago, enhancing the safety of the dividend.
- On behalf of its affiliates, W. P. Carey completed 15 acquisitions and facility expansions totaling 17 properties. The aggregate value of acquisitions and expansions during the quarter was approximately $156 million. Traditionally, deal volume rises in the fourth quarter as companies look to unlock the value of their real estate from their balance sheets by year end.
QUARTERLY RESULTS
Primarily due to the advisory operations acquired in the merger with W. P. Carey & Co., Inc. and the incorporation of fees earned for services rendered to the Corporate Property Associates (CPA®) REITs, total revenues in the fourth quarter of 2000 increased 67% to $36.4 million from $21.8 million for the same period a year ago. For the twelve-month period ended December 31, 2000, revenues increased 36% to $120.3 million from $88.5 million for the comparable period the previous year. Lease revenues for the current quarter increased 7%, or $1.3 million, as a result of prior acquisitions and contractual rent increases.
ON TARGET WITH GOALS
Commenting on the Company's performance, Wm. Polk Carey, Chairman of W. P. Carey, said "We are pleased with the year-end results and look forward to the continuation of benefits from the merger of W. P. Carey and Carey Diversified. Given the current conditions in the credit markets and the increase in deal volume that we have experienced, we had a record fourth quarter and look forward to a solid year. We are on target with our goal of providing to our shareholders a 'best of both worlds' scenario - good dividends and prudent growth."
Founded in 1973, W. P. Carey & Co. specializes in corporate real estate financing using the corporate net-lease, or sale-leaseback structure. The firm, including affiliates, is the leading lessor of net-leased corporate real estate in the nation. W. P. Carey owns and manages over 44 million square feet of property in the U.S. and Europe. Additional information about W. P. Carey is available on the Company's Web site: www.wpcarey.com
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.
