W. P. Carey Announces Third Quarter Financial Results

New York, NY – November 4, 2010 – Investment firm W. P. Carey & Co. LLC (NYSE: WPC) today reported financial results for the third quarter ended September 30, 2010.     

Download the accompanying tables for W. P. Carey's third quarter financial results here.

QUARTERLY AND NINE-MONTH RESULTS

• Funds from operations—as adjusted (AFFO) for the third quarter of 2010 was $27.6 million or $0.69 per diluted share compared to $30.2 million or $0.75 per diluted share for the third quarter of 2009.  AFFO for the nine months ended September 30, 2010 was $94.6 million or $2.38 per diluted share, compared to $89.2 million or $2.24 per diluted share for the comparable period in 2009. 
• Cash flow from operating activities for the nine months ended September 30, 2010 was $52.3 million compared to $49.4 million for the prior year period, while adjusted cash flow from operating activities was $64.9 million in the current year period compared to $71.3 million in the same period last year.
• Total revenues net of reimbursed expenses for the third quarter of 2010 were $43 million compared to $45.7 million for the third quarter of 2009.  Total revenues net of reimbursed expenses for the nine months ended September 30, 2010 were $145.6 million, compared to $136.3 million for the comparable period in 2009.  Reimbursed expenses are excluded from total revenues because they have no impact on net income.
• Net Income for the third quarter of 2010 was $16.3 million, compared to $13.4 million for the same period in 2009.  For the nine months ended September 30, 2010, net income was $54.2 million compared to $46 million for the comparable period in 2009. Results from operations in our investment management segment were significantly higher for the nine months primarily due to a higher volume of investments structured on behalf of the CPA^® REITs and lower impairment charges recognized by the CPA^® REITs than for the comparable period in 2009. 
• For the nine months ended September 30, 2010, we received approximately $12.2 million in cash distributions from our equity ownership in the CPA^® REITs.
• Further information concerning AFFO and adjusted cash flow from operating activities—non-GAAP supplemental performance metrics—is presented in the accompanying tables and related notes.

INVESTMENT AND FUNDRAISING ACTIVITY

• During the nine months ended September 30, 2010, we structured investments on behalf of the CPA^® REITs totaling $452.9 million and entered into several investments for our own real estate portfolio totaling $75.3 million. Investment activity on behalf of the CPA^® REITs for the first nine months represents an increase of $97.5 million over the prior year period.
• We continue to raise investor capital through our latest 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. To date, CPA^®:17 – Global has raised more than $1.2 billion in its initial offering.  The initial CPA^®:17 – Global offering was to have expired on November 2, 2010.  However, on October 29, CPA^®:17 – Global filed a registration statement for a second, follow-on offering, and as a result, CPA^®:17 – Global can continue fundraising through its extended initial offering until the earlier of (1) the date on which the second offering is declared effective by the SEC or (2) May 2, 2011. The second offering will seek to raise up to an additional $1 billion. 

W. P. CAREY LAUNCHES CAREY WATERMARK INVESTORS

• Carey Watermark Investors (CWI), a publicly registered, non-traded corporation that intends to qualify as a REIT, has commenced fundraising its up-to $1 billion offering. Advised by our subsidiary, Carey Lodging Advisors, LLC, and subadvisor, CWA, LLC—a subsidiary of Watermark Capital Partners, LLC—CWI intends to use the proceeds from its offering primarily to act as a capital provider to the lodging industry by acquiring a diversified portfolio of lodging and lodging related properties.

ASSETS UNDER MANAGEMENT

• W. P. Carey is the advisor to the CPA^® REITs, which had real estate assets of $8.2 billion and total assets of $8.7 billion as of September 30, 2010. 
• As of September 30, 2010, the occupancy rate of W. P. Carey’s 14 million square foot owned portfolio was approximately 91%.  In addition, for the 95 million square feet owned by the CPA^® REITs, the average occupancy rate was approximately 97%.

DISTRIBUTIONS

• The Board of Directors raised the quarterly cash distribution to $0.508 per share for the third quarter of 2010.  The distribution—our 38^th consecutive quarterly increase—was paid on October 15, 2010 to shareholders of record as of September 30, 2010. 

Trevor Bond, President and Chief Executive Officer, noted, “We are encouraged by our continuing ability to raise capital as well as our ability to source and secure investments that meet our established criteria.  Year to date acquisition volume has increased as compared with the same period in 2009, and going forward we feel that we will be able to continue to take advantage of the investment opportunities we are seeing in both the U.S. and Europe.  In what economists have predicted will be a continuing slow growth, low interest rate environment, we believe we are uniquely positioned as an alternative source of capital to companies  that are well-managed and well-positioned but may lack access to capital from more traditional sources.  Bottom line: we see our strategy of long-term investing serving us well with respect to securing attractive acquisitions, delivering consistent income to our investors and providing a solid financial platform for our tenants.” 

CONFERENCE CALL & WEBCAST
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Time: Thursday, November 4, 2010 at 11:00 AM (ET)

Call-in Number: 800-860-2442
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Webcast: www.wpcarey.com/earnings

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Replay Available until November 19, 2010 at 9:00 AM (ET).

W. P. Carey & Co. LLC
W. P. Carey & Co. LLC (NYSE: WPC) is an investment management company that provides long-term financing to companies worldwide via sale leaseback and build to suit transactions and manages a global investment portfolio of approximately $10 billion. Through its CPA^® series of income-generating, non-traded REITs, W. P. Carey helps companies and private equity firms unlock capital tied up in real estate assets.  The W. P. Carey Group's investments are highly diversified, comprising contractual agreements with approximately 275 long-term corporate obligors spanning 28 industries and 16 countries. http://www.wpcarey.com 

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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.