W. P. Carey Announces First Quarter Financial Results
W. P. Carey Q1 Financials
New York, NY – May 7, 2009 – Investment firm W. P. Carey & Co. LLC (NYSE: WPC) today reported financial results for the first quarter ended March 31, 2009.
QUARTERLY RESULTS
- Total revenues net of reimbursed expenses for the first quarter of 2009 increased to $52.3 million from $46.9 million for the first quarter of 2008. Reimbursed expenses are excluded from total revenues because they have no impact on net income.
- Net income for the first quarter of 2009 was $17.7 million, compared to $17.1 million for the same period in 2008.
- Cash flows from operating activities for the first quarter of 2009 increased to $24.3 million from $10.8 million in the first quarter of 2008.
- Adjusted cash flow from operating activities in the first quarter of 2009 increased to $39 million from $38.7 million in the first quarter of 2008.
- Funds from operations (FFO) for the first quarter of 2009, as per the attached table, were $28.9 million or $0.72 per diluted share, compared to $21.5 million or $0.54 per diluted share for the comparable period in 2008.
- Further information concerning FFO and adjusted cash flow from operating activities, non-GAAP supplemental performance metrics, is presented in the accompanying tables.
ASSETS UNDER MANAGEMENT
- W. P. Carey is the advisor to the CPA® REITs, which had assets valued at approximately $8.2 billion as of March 31, 2009.
- As of March 31, 2009, the occupancy rate of our own 17 million square foot portfolio was approximately 94%. In addition, for the 93 million square feet owned by the CPA® REITs, as of that date, the occupancy rate was approximately 98%.
INVESTMENT AND FUNDRAISING ACTIVITY
- In the first quarter of 2009, we structured investments totaling approximately $271 million, of which $231 million was on behalf of our CPA® REITs. These included a noteworthy transaction we and two affiliates closed with The New York Times Company in March, providing them with $225 million in net lease financing with respect to a leasehold condominium interest encompassing 750,000 rentable square feet of the Times Company’s midtown Manhattan, Renzo Piano–designed headquarters, which we are leasing back to them over an initial lease term of 15 years. Comparatively, in the first quarter of 2008, we structured investments totaling approximately $57 million.
- Since we began fundraising for CPA®:17 – Global in December 2007, we have raised approximately $450 million through May 6, 2009.
DISTRIBUTIONS AND SHARE REPURCHASES
- The Board of Directors raised the quarterly cash distribution to $0.496 per share for the first quarter of 2009. The distribution was paid on April 15, 2009 to shareholders of record as of March 31, 2009. This was our 32nd consecutive quarterly dividend increase.
- Through our share repurchase programs, we repurchased $10.5 million of our common stock in the first quarter of 2009. Our most recent share repurchase program expired on March 27, 2009.
CAREY STORAGE
- In January 2009, Carey Storage, our self storage subsidiary, formed a joint venture with Harbert® Management Corporation to purchase self-storage assets. Harbert and W. P. Carey are contributing a total of $50 million to the venture—$30 million from Harbert and $20 million from W. P. Carey. The venture was seeded with an existing portfolio made up of 13 properties, which were acquired by W. P. Carey’s self-storage-focused investment team over the prior two years. The self-storage investment team is actively pursuing additional property acquisitions.
“The first quarter of 2009 was emblematic of both the challenges and opportunities we see in the sale-leaseback market,” said Gordon F. DuGan, President and CEO. “Our transaction with The New York Times Company demonstrated our ability to meet the current financing needs of an established company while helping to achieve the objectives we seek for our investors. We believe there are numerous attractive investments available from a risk/return standpoint in this market. We continue to raise funds for CPA®:17 – Global to take advantage of these opportunities.”
CONFERENCE CALL & WEBCAST
Please call at least 10 minutes prior to call to register.
Date: Thursday, May 7, 2009, 11:00AM (ET)
Call-in Number: 1-877-407-0782
(International) +1-201-689-8567
Webcast: www.wpcarey.com/earnings
Podcast: www.wpcarey.com/podcast
Available after 2:00 PM (ET)
Replay Number: 1-877-660-6853
(International) +1-201-612-7415
Replay Access Codes: Account # 286 and Conference ID # 320766. Please note that both access codes are required for playback. Replay Available until May 21, 2009 at midnight ET.
W. P. Carey & Co. LLC
W. P. Carey & Co. LLC is an investment firm that provides long-term sale-leaseback and build-to-suit financing for companies worldwide and manages a global investment portfolio approaching $10 billion. Publicly traded on the New York Stock Exchange (WPC), W. P. Carey and its CPA® series of income-generating, non-traded REITs help companies and private equity firms release capital tied up in real estate assets. The W. P. Carey Group’s investments are highly diversified, comprising contractual agreements with approximately 300 long-term corporate obligors spanning 28 industries and 14 countries. http://www.wpcarey.com
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 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.
