W. P. Carey Announces First Quarter Financial Results
W. P. Carey First Quarter 2010 Financials
New York, NY – May 6, 2010 – Investment firm W. P. Carey & Co. LLC (NYSE: WPC) today reported financial results for the first quarter ended March 31, 2010.
QUARTERLY RESULTS
- Funds from operations—as adjusted (AFFO) for the first quarter of 2010 remained relatively flat compared to the first quarter of 2009: $28.1 million or $0.71 per diluted share compared to $28.9 million or $0.72 per diluted share, respectively.
- Cash flow from operating activities for the three months ended March 31, 2010 was $13.6 million compared to $24.3 million for the prior year period, while adjusted cash flow from operating activities was $27.7 million in the first quarter of 2010 compared to $39 million in the first quarter last year. The decreases were due in part to the timing of the recognition of deferred acquisitions fees paid by our newest managed fund, CPA®:17 – Global, which pays such fees to us on a quarterly basis rather than annually, as is the case with our other managed funds.
- Total revenues net of reimbursed expenses for the first quarter of 2010 were $48 million, compared to $50.6 million for the first quarter of 2009. Reimbursed expenses are excluded from total revenues because they have no impact on net income.
- Net Income for the first quarter of 2010 was $14.4 million, compared to $17.7 million for the same period in 2009. The decrease was substantially due to impairment charges of $7.2 million in the first quarter.
- We received approximately $3.9 million in cash distributions from our equity ownership in the CPA® REITs for the quarter ended March 31, 2010.
- Further information concerning AFFO and adjusted cash flow from operating activities—non-GAAP supplemental performance metrics—is presented in the accompanying tables.
INVESTMENT AND FUNDRAISING ACTIVITY
- Investment volume, for our own portfolio and on behalf of the CPA® REITs, for the first quarter was approximately $197 million, compared to $271 million for the first quarter of 2009, which was approximately 50% of the total $548 million investment volume for all of 2009.
- First quarter transactions included the $49 million second tranche of a total $105 million sale-leaseback with Spanish grocery retailer Eroski and the $14 million acquisition of two Curtiss-Wright Ohio manufacturing facilities on behalf of our REITs, as well as our acquisition of JP Morgan Chase’s Operations Center office building in Dallas/Fort Worth.
- In the second quarter, we have completed two international transactions on behalf of the CPA® REITs: a $34 million sale-leaseback with UK logistics and supply chain management company TDG and a $101 million transaction with Agrokor, the largest private company and food retailer in Croatia.
- 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. CPA®:17 – Global raised $140 million in the first quarter of 2010, compared with $71.6 million in the first quarter of 2009. To date, CPA®:17 – Global has raised more than $975 million of its up-to $2 billion offering.
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 $8.4 billion as of March 31, 2010.
- As of March 31, 2010, the occupancy rate of our 14 million square foot owned portfolio was approximately 94%. In addition, for the 93 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 $0.504 per share for the first quarter of 2010. The distribution—our 36th consecutive quarterly increase—was paid on April 15, 2010 to shareholders of record as of March 31, 2010.
Gordon DuGan, President and CEO of W. P. Carey, said, “We are pleased with the investment volume that we have generated so far this year, as well as the strong capital flows by our managed funds. We believe we are very well positioned with access to both debt and equity capital to take advantage of growth opportunities in 2010 and beyond.”
CONFERENCE CALL & WEBCAST
Please call at least 10 minutes prior to call to register.
Time: Thursday, May 6, 2010 at 11:00 AM (ET)
Call-in Number: 800-860-2442
(International) +1-412-858-4600
Webcast: www.wpcarey.com/earnings
Podcast: www.wpcarey.com/podcast
Available after 2:00 PM (ET)
Replay Number: 877-344-7529
(International) +1-412-317-0088
Replay Passcode: 439691#
Replay Available until May 20, 2010 at midnight ET.
W. P. Carey & Co. LLC
W. P. Carey & Co. LLC (NYSE: WPC) is an investment management company that provides long-term sale-leaseback and build-to-suit financing for companies worldwide and manages a global investment portfolio approaching $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
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.
