W. P. Carey & Co. Reports Second Quarter 2003 Results
WEBCAST WPC 2nd Quarter 2003 Financials
NEW YORK, NEW YORK – July 29, 2003 – Investment firm W. P. Carey & Co. LLC (NYSE: WPC) today reported financial results for the three- and six-month periods ended June 30, 2003.
OPERATING HIGHLIGHTS
- Earnings per share (EPS) for the three-month period were $0.34 as compared to $0.65 for the comparable period in 2002. EPS for the six-month period were $0.81, as compared to $1.04 for the similar period last year. These declines were due in large part to a gain of $11 million on the sale of an 18.3-acre dairy site in downtown Los Angeles that was recognized during the second quarter of 2002. Excluding the gain from the sale of the dairy, EPS would have been even for the three-month period and up 11% for the six-month period.
- Net income for the three-month period was $13.0 million, as compared to $23.6 million for the same period in 2002. For the six-month period, net income was $30.2 million as compared to $37.3 million for the same period a year ago. Excluding the gain from the sale of the dairy, net income would have increased $563,000 and $4.1 million for the three- and six-month periods in 2003, respectively.
- Funds From Operations (FFO), a widely accepted supplemental measure of performance, for the three-month period were $0.60 per diluted share, or $22.5 million, as compared to $0.67 per diluted share, or $24.2 million, for the same period last year. FFO for the six-month period increased to $1.35 per diluted share, or $50.7 million, up from $1.28 per diluted share, or $46.3 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 was $36.3 million as compared to $36.5 million for the same period a year ago. Total revenue for the six-month period was $82.6 million as compared to $68.6 million for the same period a year ago.
- The Company reported that it raised more than $221 million of equity on behalf of CPA®:15, its income generating real estate investment trust (REIT), during the three-month period as compared to $117 million in 2002, and more than $368 million over the six-month period as compared to $185 million in 2002.
- W. P. Carey completed more than $330 million in sale-leaseback transactions during the first six months as compared to $289 million in the first six months of 2002. During the second quarter the Company reported the completion of $59 million in sale-leaseback transactions as compared to $169 million during the same period in 2002. Over the past 12-month period, W. P. Carey has completed $1.05 billion in acquisitions. The Company believes that its acquisition volume will vary from quarter to quarter and that a trailing 12-month figure is the most accurate assessment of its acquisition activity.
- In June, the Board of Directors raised the cash dividend to $.433 per common share. This reflects the ninth consecutive quarterly increase. The dividend was paid on July 15, 2003 to shareholders of record on June 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 to report an increase in funds from operations for the six-month period. Excluding the gain on the sale of the dairy in 2002, net income was up $4.1 million and EPS was up 11% for the six-month period. Due to the solid capital base of our managed REITs, we’ve never been better positioned to continue building our assets under management and to serve well the interests of our tenant-clients. We believe we are able to identify and structure investment opportunities that are proprietary and therefore provide our investors and tenants with value-added opportunities not found elsewhere.”
CONFERENCE CALL & WEBCAST
W. P. Carey will host a conference call and audio webcast to discuss its second 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 conference has been ARCHIVED. 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 EST this afternoon by calling 1-800-428-6051 (International 1-973-709-2089) with the access code 297720 through August 5, 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 affiliated income generating, publicly held, non-traded real estate investment trusts (REITs) 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.
