W. P. Carey Announces Second Quarter Financial Results
W. P. Carey Q2 2009 Financials
New York, NY – August 6, 2009 – Investment firm W. P. Carey & Co. LLC (NYSE: WPC) today reported financial results for the second quarter ended June 30, 2009.
QUARTERLY AND SIX-MONTH RESULTS
- Total revenues net of reimbursed expenses for the second quarter of 2009 were $44.3 million, compared to $47.3 million for the second quarter of 2008. Total revenues net of reimbursed expenses for the six months ended June 30, 2009 were $96.5 million, compared to $94.2 million for the comparable period in 2008. Reimbursed expenses are excluded from total revenues because they have no impact on net income.
- Net income for the second quarter of 2009 was $15.0 million, compared to $19.8 million for the same period in 2008. For the six months ended June 30, 2009, net income was $32.7 million, compared to $36.9 million for the comparable period in 2008.
- Cash flows from operating activities for six months ended June 30, 2009 increased to $34.7 million from $27.2 million for the prior year period.
- Adjusted cash flow from operating activities for the six months ended June 30, 2009 was $50.0 million, compared to $53.8 million for the comparable period in 2008.
- Funds from operations (FFO) for the second quarter of 2009 were $30.1 million or $0.75 per diluted share, compared to $35.6 million or $0.88 per diluted share for the comparable period in 2008. FFO for the six months ended June 30, 2009 was $59.0 million or $1.48 per diluted share, compared to $57.1 million or $1.42 per diluted share for the comparable period in 2008.
- For the six months ended June 30, 2009, we incurred impairment charges of $2.3 million and our CPA® REITs incurred impairment charges aggregating approximately $54.6 million, which reduced the amount of income we recognize from these equity investments by approximately $2.8 million. We received approximately $6.8 million in cash distributions from our equity ownership in the CPA® REITs for the same period.
- Further information concerning FFO and adjusted cash flow from operating activities, non-GAAP supplemental performance metrics, is presented in the accompanying tables.
INVESTMENT, FUNDRAISING AND FINANCING ACTIVITY
- Investment volume, for our own portfolio and on behalf of the CPA® REITs, for the six months ended June 30, 2009 was $273.8 million, an increase over the prior year as a result of two significant transactions—The New York Times Company and Kronos Foods—closing in the first quarter.
- In July, on behalf of our CPA® REITs, we structured a $93.6 million sale-leaseback and our first Hungarian transaction with UK retailer, Tesco plc.
- We continue to raise investor capital through our latest non-traded REIT offering, CPA®:17 – Global, so that we may take advantage of attractive investment opportunities that we believe are afforded by the current market environment. Through July 31, 2009, CPA®:17 – Global has raised more than $550 million of its up-to $2 billion offering. For the second quarter of 2009, we raised $100.3 million, compared to $71.5 million in the first quarter of this year.
- Since the beginning of the credit crunch in September 2008, W. P. Carey and our CPA® REITs have completed refinancings of maturing debt totaling more than $120 million secured by seven properties, of which $44.2 million closed in the first half of 2009.
ASSETS UNDER MANAGEMENT
- W. P. Carey is the advisor to the CPA® REITs, which had real estate assets of $7.9 billion and total assets of $8.2 billion as of June 30, 2009.
- As of June 30, 2009, the occupancy rate of our 17 million square foot owned portfolio was approximately 94%. In addition, for the 92 million square feet owned by the CPA® REITs, the occupancy rate was approximately 98%.
DISTRIBUTIONS
- The Board of Directors raised the quarterly cash distribution to $0.498 per share for the second quarter of 2009. The distribution was paid on July 15, 2009 to shareholders of record as of June 30, 2009. This was our 33rd consecutive quarterly dividend increase.
- Over the past 36 years, W. P. Carey and the CPA® programs have paid approximately $2.9 billion to investors over 800 cash distributions.
“While the second quarter was largely uneventful from a financial results standpoint, we believe we are very well poised to take advantage of opportunities in the sale-leaseback market,” said Gordon F. DuGan, President and Chief Executive Officer. “Specifically, we have been quite pleased at the access to capital that we have in terms of increased equity fundraising and our continued access to mortgage financing. Our existing funds continue to perform as expected, although we will remain cautious about corporate defaults until we see a meaningful economic recovery. Lastly, having access to capital and significantly fewer legacy challenges is allowing us to play offense in the sale-leaseback market at a time when others have to take a more defensive posture."
CONFERENCE CALL & WEBCAST
Please call at least 10 minutes prior to call to register
Time: Thursday, August 6, 2009 at 11:00 AM (ET)
Call-in Number: 877-591-4953
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Passcode: 3545166
Webcast: www.wpcarey.com/earnings
Podcast: www.wpcarey.com/podcast
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Replay Number: 888-203-1112
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Replay Available until August 20, 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 15 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.
