W. P. Carey & Co. Reports 25% Increase in FFO for First Quarter 2003
Management Confident of Another Strong Year as Sale-leaseback Financing Transactions Remain at Record Levels
WEBCAST • WPC 1st Quarter 2003 Financials
NEW YORK, NY, April 29, 2003 - Investment firm W. P. Carey & Co. LLC (NYSE: WPC) today reported first quarter 2003 financial results for the three-month period ended March 31, 2003.
OPERATING HIGHLIGHTS
- Diluted earnings per share (EPS) for the three-month period increased by 21% to $0.46 up from $0.38 for the comparable period last year. This was due in large part to an increase in investment management revenues.
- Funds From Operations (FFO), a widely accepted supplemental measure of performance, for the three-month period increased 25% on a per share basis to $0.76 per diluted share, or $28.1 million, up from $0.61 per diluted share, or $22.1 million, for the comparable period last year. A complete reconciliation containing adjustments from GAAP net income to FFO is included in this release.
- Net income for the three-month period increased by 26% to $17.3 million up from $13.7 million for the comparable period in 2002.
- Total revenue for the three-month period increased 43% to $47.1 million up from $33.0 million for the same period a year ago. This was due in large part to an increase in investment management revenues, as well as the receipt of $2.2 million following the termination of a lease with The Gap, Inc. for a property located in Erlanger, KY.
- W. P. Carey completed more than $272 million in net lease transactions during the first quarter as compared to $117 million in 2002. Over the past 12-month period the Company completed $1.16 billion in acquisitions. While quarterly numbers are unpredictable, we continue to believe this increase was due to the continuing desire of corporations to raise capital outside of the traditional capital markets.
- In March the Board of Directors raised the cash dividend to $.432 per common share. This reflects the eighth consecutive quarterly increase. The dividend was paid on April 15, 2003 to shareholders of record on March 31, 2003. Dividends have increased every year since 1998 when the company went public.
- The Board announced the Company's 2003 Annual Shareholder Meeting will take place on Tuesday, June 10th at 10:30 AM at the Waldorf=Astoria Hotel in New York City. All shareholders are invited to attend.
Chairman Wm. Polk Carey said, "Earlier this month we celebrated thirty years of meeting the needs of our investors. Our approach to 'under-promise and over-perform,' as well as our decision to run our company as owners has been a success and is reflected in our thirty-year track record and this quarter's financial results. We remain committed to meeting the expectations of our investors and to providing the sale-leaseback financing sought by corporations looking to grow and expand their business. While no one can predict what the future holds, our proven track record and the strength of our management team augurs well for the future."
CONFERENCE CALL & WEBCAST
W. P. Carey will host a conference call and audio webcast to discuss its first quarter 2003 financial results today at 11:00 AM ET. Stockholders and interested parties may listen to a live broadcast of the call by dialing 1-800-915-4836 (International 1-973-317-5319). The conference call has been ARCHIVED. Please visit the website at least fifteen minutes prior to the call to register, download and install any necessary audio software. For those who are not able to listen to the live broadcast, the webcast replay will be available immediately following the call on the Company's website.
Alternatively, individuals can listen to the call after 1:00 PM ET this afternoon by calling 1-800-428-6051 (International 1-973-709-2089) with the access code 289931 through May 30, 2003.
W. P. Carey's press releases are available on the Company's website at www.wpcarey.com or by contacting the Corporate Communications Department at 1-800-WP CAREY or by e-mail at media@wpcarey.com.
Founded in 1973, W. P. Carey & Co. specializes in corporate real estate financing through the corporate net lease or sale-leaseback structure. The firm and its affiliates continue to be leading lessors of net-leased corporate real estate. The largest publicly traded limited liability company in the world, W. P. Carey owns and/or manages more than 550 commercial and industrial properties throughout the United States and Europe comprised of 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.
