Financial And forex Info | SRS: W. P. Carey Announces Fourth Quarter and Year-End 2010 Financial Results



Investing for the long run



W. P. Carey Announces Fourth Quarter and Year-End 2010 Financial Results
New York, NY – February 24, 2011 – Investment firm W. P. Carey & Co. LLC (NYSE: WPC) today reported financial results for the fourth quarter and year-ended December 31, 2010.    

Download the accompanying tables for W. P. Carey's fourth quarter and year-end 2010 financial results here.
QUARTERLY AND YEAR-END RESULTS
  • Funds from operations—as adjusted (AFFO) for the fourth quarter of 2010 was $36.3 million or $0.90 per diluted share, compared to $33.7 million or $0.83 per diluted share for the fourth quarter of 2009.  AFFO for the year ended December 31, 2010 was $130.9 million or $3.27 per diluted share, compared to $122.9 million or $3.09 per diluted share for 2009.
  • Cash flow from operating activities for the year ended December 31, 2010 was $86.4 million, compared to $74.5 million for 2009, while adjusted cash flow from operating activities was $88.6 million for 2010, compared to $93.9 million for 2009.
  • Total revenues net of reimbursed expenses for the fourth quarter of 2010 were $68.3 million, compared to $48.5 million for the fourth quarter of 2009.  Total revenues net of reimbursed expenses for the year ended December 31, 2010 were $213.9 million, compared to $184.8 million in 2009.  Reimbursed expenses are excluded from total revenues because they have no impact on net income.
  • Net Income for the fourth quarter of 2010 was $19.8 million, compared to $23 million for the same period in 2009.  For the year ended December 31, 2010, net income was $74 million, compared to $69 million for 2009. Results from operations in our investment management segment were significantly higher in 2010, primarily due to a higher volume of investments structured on behalf of the CPA® REITs and lower impairment charges recognized by the CPA® REITs.
  • For the year ended December 31, 2010, we received approximately $16.6 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 ACTIVITY
  • Investment volume for the year ended December 31, 2010 on behalf of the CPA® REITs and for our own portfolio totaled approximately $1.1 billion, or double last year’s volume of approximately $548 million.  International investments comprised 43% of total investments during 2010, compared to 36% in 2009, and we expect that international transactions will continue to form a significant portion of the investments we structure.
  • We closed approximately $593 million in investments on behalf of the CPA® REITs in the fourth quarter of 2010. These investments involved forty-seven facilities containing approximately five million square feet in the U.S., Canada, Croatia, China and Spain.

FUNDRAISING ACTIVITY
  • We continue to raise investor capital through our latest CPA® 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 $1.4 billion in its initial offering.  CPA®:17 – Global has filed a registration statement with the SEC for a follow-on offering of up to an additional $1 billion of common stock.
  • Carey Watermark Investors commenced its initial public offering of up to $1 billion of common stock, the proceeds of which will be used to acquire interests in lodging and lodging-related properties.

ASSETS UNDER MANAGEMENT
  • W. P. Carey is the advisor to the CPA® REITs, which had real estate assets of $8.5 billion and total assets of $8.8 billion as of December 31, 2010. 
  • As of December 31, 2010, the occupancy rate of W. P. Carey’s 14 million square foot owned portfolio was approximately 89%.  In addition, for the 99 million square feet owned by the CPA® REITs, the average occupancy rate was approximately 97%.

PROPOSED MERGER OF CPA®:14 AND CPA®:16 – GLOBAL
  • As previously disclosed, on December 13, 2010 two of the CPA® REITs we manage, CPA®:14 and CPA®:16 – Global, entered into a definitive agreement pursuant to which CPA®:14 will merge with and into a subsidiary of CPA®:16 – Global, subject to shareholder approval and other closing conditions.  If the merger is approved and the other closing conditions are satisfied, we currently expect that the closing will occur in the second quarter of 2011, although there can be no assurance of such timing.

DISTRIBUTIONS
  • The Board of Directors raised the quarterly cash distribution to $0.510 per share for the fourth quarter of 2010.  The distribution—our 39th consecutive quarterly increase—was paid on January 14, 2011 to shareholders of record as of December 31, 2010. 

Commenting on the 2010 results, W. P. Carey President and CEO Trevor Bond noted, “With more than $1 billion in transactions completed and record fundraising of nearly $600 million, 2010 was one of our most successful years.  These acquisitions have added to the geographic and industry diversity of our portfolios, and we believe we can build on this momentum in 2011.  Although we’re seeing new competitors entering the net lease market, we believe that our leading position in the sector combined with our seasoned acquisitions, asset management and capital-raising teams will allow us to source and execute on opportunities and maintain the risk-return profile that has been the hallmark of our CPA® programs.  As global economics improve, we believe the demand for long-term capital to fund corporate growth and expansion will continue and that we are well positioned to grow and expand our own business in this environment.”

CONFERENCE CALL & WEBCAST
Please call at least 10 minutes prior to call to register.

Time: Thursday, February 24, 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:448255#
Replay Available until March 11, 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 $10.5 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 17 countries. http://www.wpcarey.com

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.
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