W. P. Carey Announces Second Quarter Financial Results
Quarterly Earnings Increase 18%
WEBCAST • WPC 2nd Quarter 2004 Financials (PDF)
NEW YORK, NY, July 27, 2004 – Investment firm W. P. Carey & Co. LLC (NYSE: WPC) today reported financial results for the three and six-month periods ended June 30, 2004.
Quarterly and Six Month Results
-
Earnings per share (EPS) for the three-month period increased 18% to $0.40, up from $0.34 for the same period in 2003. EPS for the six-month period were $0.69, as compared to $0.81 for the similar period last year. Net Income for the three-month period was $15.5 million, as compared to $13.0 million for the same period in 2003. For the six-month period, net income was $26.6 million as compared to $30.2 million for the same period a year ago. The decline for the six-month period was due in large part to an accounting charge relating to the sale of a property acquired in 1986. Excluding this event, net income for the six-month period would have been $31.3 million, an increase of $1.1 million.
-
Funds from Operations (FFO) for the three-month period increased 43% to $0.86 per diluted share, or $33.1 million, as compared to $0.60 per diluted share, or $22.5 million, for the comparable period in 2003. FFO for the six-month period increased to $1.41 per diluted share, or $54.5 million, up from $1.35 per diluted share, or $50.7 million for the similar period a year ago.
-
Total revenue for the three-month period increased 53% to $53.4 million, up from $35.0 million for the same period a year ago. For the six-month period, total revenue was $90.5 million, as compared to $80.0 million for the comparable period in 2003.
-
Cash Flows from Operating Activities (CFO) for the six-month period in 2004 increased 36% to $41 million, up from $30.2 million during the same period in 2003. The unaudited Consolidated Statements of Cash Flows are attached to this press release.
-
The Company, on behalf of its CPA® series of REITs, completed $429 million in investments during the second quarter, as compared to $59.2 million during the same period in 2003. For the six-month period, the company completed $494 million in investments, as compared to $332 million during the same period last year.
-
The Company announced that the Federal Reserve Board’s recent decision to increase the federal funds rate by 25 basis points to 1-1/4 percent would have a negligible impact on the borrowing costs of the company, costing it approximately $.02 million or $0.001 per share for the third quarter ending September 30, 2004.
-
In June, the Board of Directors raised the cash dividend to $.438 per common share. This reflects the thirteenth consecutive quarterly increase. The dividend was paid on July 15, 2004 to shareholders of record on June 30, 2004. Dividends have increased every year since 1998 when the company went public.
-
W. P. Carey’s President and Co-CEO Gordon F. DuGan will present at the upcoming Wall Street Transcript’s Investing in the REIT Industry conference at the Harvard Club in New York City on Tuesday, August 17th at 11:20 AM (EDT). A webcast of his presentation will be available at
www.wpcarey.com/twst
Mr. DuGan said, “We are very pleased with our quarterly results and believe they reflect our commitment to meeting the investment and financing expectations of our investors, tenant-clients and managed entities. While this was a very strong quarter, in terms of net lease investments, and our prospects of future transactions remains strong, we reiterate that our quarterly investment volume will fluctuate.
“We are pleased to report, that due to our corporate policy of using generally fixed rate, non-recourse debt and rent escalation provisions in our long-term leases, our borrowing costs will not be materially impacted by the Federal Reserve Board’s recent decision to increase rates. We believe that our unique business model, which offers our investors a dependable, rising income stream and our tenant-clients long-term customized corporate financing, bodes well for our continued success.”
Conference Call & Webcast
Please call at least 10 minutes prior to register for call.
Time: Tuesday, July 27th 11:00 AM EDT.
Call-in number: 1-800-915-4836 (International 1-973-317-5319).
Webcast: ARCHIVED
Replay: Available after 1:00 PM. Call 1-800-428-6051
(International 1-973-709-2089) with the access code 361632.
Founded in 1973, W. P. Carey & Co. is a leading global investment firm that has long served as a preeminent provider of sale-leaseback financing to corporations and private equity firms in the United States and Europe. It owns a portfolio of net-leased real estate assets and provides asset management services to the Corporate Property Associates (CPA®) series of income generating, publicly held non-traded real estate investment trusts (REITs). The Company currently owns and/or manages more than 680 commercial and industrial properties worldwide, representing 95 million square feet valued at approximately $7 billion.
Individuals interested in receiving future updates on W. P. Carey via e-mail can register at www.wpcarey.com/alerts.
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.
