W. P. Carey & Co. Announces Third Quarter 2003 Results
Reports Third Quarter Net Income Up 7%
WEBCAST • WPC 3rd Quarter 2003 Financials
NEW YORK, NEW YORK, October 28, 2003 – Investment firm W. P. Carey & Co. LLC (NYSE: WPC) today reported financial results for the three- and nine-month periods ended September 30, 2003.
OPERATING HIGHLIGHTS
- Earnings per share (EPS) for the three-month period were $0.36 equal to the EPS for the comparable period in 2002.
- Net income for the three-month period increased 7% to $13.9 million, as compared to $13.0 million for the same period in 2002. Net income for the nine-month period, was $44.1 million as compared to $50.3 million for the similar period last year. This decline was due in large part to a gain of $11 million on the sale of a property, which was recognized during the second quarter of 2002.
- Funds From Operations (FFO), measured consistently with prior quarters, for the three-month period increased 11% to $0.71 per share, or $27.3 million, as compared to $0.64 per share, or $23.3 million, for the same period in 2002. FFO for the nine-month period increased 8% to $2.07 per share, or $78.0 million as compared to $1.92 per share, or $69.6 million, for the similar period a year ago. A complete reconciliation containing adjustments from GAAP net income to FFO is included in this release.
- Total revenue for the three-month period increased 21% to $44.2 million as compared to $36.6 million for the same period a year ago. For the nine-month period total revenue increased 17% to $126.2 million as compared to $104.6 million for the similar period last year.
- In August, CPA®:15, an income generating real estate investment trust (REIT), managed by W. P. Carey, closed to investors after raising more than $1 billion since its inception in November 2001. As a result of its successful fundraising efforts, CPA®:15 raised more funds than W. P. Carey’s first twelve CPA® programs combined.
- W. P. Carey completed more than $542 million in sale-leaseback transactions during the first nine months as compared to $500 million during the same period in 2002. During the third quarter the Company reported the completion of $211 million in sale-leaseback transactions equal to its acquisitions volume during the same period last year.
- In September, the Board of Directors raised the cash dividend to $.434 per common share. This reflects the tenth consecutive quarterly increase. The dividend was paid on October 15, 2003 to shareholders of record on September 30, 2003. Dividends have increased every year since 1998 when the company went public.
President and Co-CEO Gordon F. DuGan said, “We are pleased with our performance this past quarter and for the first nine months of the year.
At the same time, we remind investors that we don’t manage the business for quarterly earnings, but rather with an eye towards long-term value creation. The overall prospects for our business are excellent, although we remain cautious about the amount of capital available in the real estate industry generally. Today, we have ample resources on hand to help companies meet their various financing needs and we remain focused on structuring value-added sale-leaseback transactions for our investors and tenant/clients alike.”
CONFERENCE CALL & WEB CAST
W. P. Carey will host a conference call and audio web cast to discuss its third quarter 2003 financial results today at 11:00 AM EST. Interested parties may listen to a live broadcast of the call by dialing 1-800-915-4836 (International 1-973-317-5319). The web cast has been ARCHIVED. A web cast replay will be available immediately following the call on the Company’s website. Alternatively, individuals can listen to the call after 1:00 PM EST this afternoon by calling 1-800-428-6051 (International 1-973-709-2089) with the access code 307885 through November 3rd.
Founded in 1973, W. P. Carey & Co. LLC is a leading investment firm that serves as the preeminent provider of sale-leaseback financing to corporations in the United States and Europe. The Company acquires single-tenant corporate and industrial properties and leases them back to the tenant often under a triple-net lease lasting 15-20 years. By converting an otherwise depreciating asset, companies are able to use the capital they receive from W. P. Carey to pay down debt, fund acquisitions or reinvest in the core competencies of their business. W. P. Carey owns and/or manages more than 550 commercial and industrial properties throughout the United States and Europe representing more than 75 million square feet.
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 commercial 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.
