W. P. Carey Announces First Quarter Financial Results

New York, NY – May 10, 2011 – Investment firm W. P. Carey & Co. LLC (NYSE: WPC) today reported financial results for the first quarter ended March 31, 2011.     

Download the accompanying tables for W. P. Carey's first quarter 2011 financial results here.

QUARTERLY RESULTS

• Funds from operations—as adjusted (AFFO) for the first quarter of 2011 increased compared to the first quarter of 2010, to $39.1 million or $0.97 per diluted share from $28.1 million or $0.71 per diluted share, respectively. 
• Cash flow from operating activities for the three months ended March 31, 2011 was $6.7 million compared to $13.6 million for the prior year period, while adjusted cash flow from operating activities was $24.2 million in the first quarter of 2011 compared to $27.7 million in the first quarter last year.
• Total revenues net of reimbursed expenses for the first quarter of 2011 increased to $59.8 million from $47.7 million for the first quarter of 2010.  Reimbursed expenses are excluded from total revenues because they have no impact on net income.
• Net Income for the first quarter of 2011 was $23.3 million, compared to $14.4 million for the same period in 2010. 
• We received approximately $4.5 million in cash distributions from our equity ownership in the CPA^® REITs for the quarter ended March 31, 2011.
• Further information concerning AFFO and adjusted cash flow from operating activities—non-GAAP supplemental performance metrics—is presented in the accompanying tables.

CPA^®:17 - GLOBAL ACTIVITY

• On April 7, 2011, CPA^®:17 – Global’s follow-on offering was declared effective by the SEC, and its initial public offering was terminated.  The follow-on offering is for up to an additional $1 billion of CPA^®:17 – Global’s common stock.  To date, CPA^®:17 – Global has raised more than $1.5 billion in investor capital. 
• Investment volume for our CPA^® REITs in the first quarter of 2011—the majority of which was on behalf of CPA^®:17 – Global—was approximately $345 million.
• First quarter transactions included a $207 million sale-leaseback with a leading Dutch supermarket company C1000, and a $32 million transaction with Harbor Freight Tools, a brand-name, discount tool retailer, involving its East Coast distribution facility.
• In the second quarter of 2011, we completed a $51 million acquisition of four industrial facilities leased to Flanders Corporation, and a $3 million acquisition of a self-storage asset in Fort Worth, Texas, which will be managed by Metro Storage. 

CAREY WATERMARK INVESTORS ACTIVITY

• To date, CWI has raised more than $19 million in its initial public offering and closed its first transaction on May 5, 2011.  The transaction is an $88 million joint venture with Ensemble Hotel Partners, LLC for two hotel properties located on the waterfront in Long Beach, California.  CWI’s investment is approximately $43.6 million, of which $20.8 million is equity.

MERGER OF CPA^®:14 and CPA^®:16 – GLOBAL

• The merger of CPA^®:14 with and into a subsidiary of CPA^®:16 – Global closed on May 2, 2011.  The transaction represents the thirteenth successful liquidation of a W. P. Carey fund since 1998 and provided CPA^®:14 investors with an average annual return at liquidation of 8.96%.
• This merger also provides CPA^®:16 - Global investors with a more diversified portfolio and an opportunity for increased cash flow. 

ASSET MANAGEMENT ACTIVITY

• In the first quarter of 2011, we re-leased our iconic Frank Gehry-designed Binoculars Building to Google Inc., which is making significant improvements to the building and combining it with two adjacent buildings to create a large, unique campus environment. 
• As of March 31, 2011, the occupancy rate of our 14 million square foot owned portfolio was approximately 90%.  In addition, for the 103 million square feet owned by the CPA^® REITs, the occupancy rate was approximately 98%.

ASSETS UNDER OWNERSHIP AND MANAGEMENT

• W. P. Carey is the advisor to the CPA^® REITs, which had total assets of $9.2 billion as of March 31, 2011. 
• The W. P. Carey Group’s assets under ownership and management total approximately $11.2 billion as of March 31, 2011—a 41% increase over the past five years.

DISTRIBUTIONS

• The Board of Directors raised the quarterly cash distribution to $0.512 per share for the first quarter of 2011.  The distribution—our 40^th consecutive quarterly increase—was paid on April 15, 2011 to shareholders of record as of March 31, 2011. 

Trevor Bond, President and Chief Executive Officer, noted, “We have experienced significant accomplishments year-to-date in terms of fundraising, acquisitions and asset management, and we achieved positive financial results in the first quarter.  The successful closing of the merger of CPA^®:14 with CPA^®:16 - Global shows our continuing ability and commitment to providing solid returns to our CPA^® investors over the long term.  The completion of the initial public offering of CPA^®:17 – Global and the launch of its follow-on offering are a testament to our fundraising capabilities.  We continue to source attractive long term, income-generating investments on behalf of CPA^®:17 – Global.  Our lease with Google is an example of how our asset management team maintains and enhances portfolio property values for us as well as our CPA^® funds.  And finally, the closing of our first hotel investment on behalf of Carey Watermark Investors demonstrates our ability to identify, structure and execute on hospitality investments that draw on our strength and history as a capital source. 

“None of this could have been accomplished without the talent embedded in all areas of our organization.  The W. P. Carey team is committed to growing our asset base and generating consistent cash flow to meet the needs and objectives of our investors and shareholders.” 

CONFERENCE CALL & WEBCAST

Please call at least 10 minutes prior to call to register.

Time: Tuesday, May 10, 2011 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: 450676#

Replay Available until May 24, 2011 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 $11 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 280 long-term corporate obligors spanning 28 industries and 17 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.