SOURCE: W. P. Carey & Co. LLC

August 07, 2008 09:15 ET

W. P. Carey Announces Second Quarter Financial Results

NEW YORK, NY--(Marketwire - August 7, 2008) - Investment firm W. P. Carey & Co. LLC (NYSE: WPC) today reported financial results for the second quarter ended June 30, 2008. The Company noted that results of operations for the same period in 2007 had benefitted from the recognition of previously deferred revenue totaling $45.9 million as a result of CPA®:16 - Global meeting its performance hurdle in June 2007, which contributed $21.6 million to net income.

QUARTERLY AND SIX-MONTH RESULTS

--  Total revenues net of reimbursed costs for the three and six months
    ended June 30, 2008 were $47.4 million and $94.4 million, respectively.
    Total revenues were $105.8 million and $147 million for the comparable
    periods in 2007, each of which included the $45.9 million in revenues from
    the hurdle. Reimbursed costs are excluded from total revenues because they
    have no impact on net income.
--  Net income for the three and six months ended June 30, 2008 was $19.8
    million and $36.9 million, respectively. Net income was $42 million and
    $52.8 million for the comparable periods in 2007, each of which reflected
    the $21.6 million of net income attributed to the hurdle.
--  Diluted earnings per share (EPS) for the second quarter of 2008 was
    $0.50, as compared to $1.10 for the same period in 2007. Diluted EPS for
    the six months ended June 30, 2008 was $0.93, compared to $1.37 for the
    same period in 2007.
--  Funds from operations (FFO) for the second quarter of 2008, as per the
    attached table, was $35.5 million or $0.88 per diluted share, as compared
    to $79.6 million or $1.99 per diluted share for the comparable period in
    2007. FFO for the six months ended June 30, 2008 was $57.1 million, or
    $1.42 per diluted share, as compared to $98.1 million or $2.46 per diluted
    share for the comparable period in 2007.
--  Cash flows from operating activities for the six months ended June 30,
    2008 were $27.2 million, as compared to $11.6 million in the prior year
    period.
--  The Board of Directors raised the quarterly cash distribution to
    $0.487 per share for the second quarter, which was paid on July 15, 2008 to
    shareholders of record as of June 30, 2008.
    

SUPPLEMENTAL PERFORMANCE METRICS

--  Earnings before interest, taxes, depreciation and amortization
    (EBITDA) from our investment management segment totaled $15.8 million this
    quarter or $0.39 per diluted share, compared to EBITDA in the second
    quarter of 2007 of $63.5 million or $1.59 per diluted share. For the six
    months ended June 30, 2008, EBITDA from this segment was $30.5 million, or
    $0.76 per diluted share, compared to $75.1 million, or $1.88 per diluted
    share, for the comparable period in 2007.
--  FFO from our real estate ownership segment in the second quarter of
    2008 was $20.9 million or $0.52 per diluted share, compared to $17 million
    or $0.43 per diluted share in the second quarter of 2007. For the six
    months ended June 30, 2008, FFO from this segment was $37 million, or $0.92
    per diluted share, compared to $31.7 million, or $0.80 per diluted share,
    for the comparable period in 2007.
--  For the six months ended June 30, 2008, adjusted cash flow from
    operations totaled $53.8 million, as compared to $54.9 million for the
    comparable period in 2007.
--  Further information concerning these non-GAAP supplemental performance
    metrics is presented in the accompanying tables.
    

INVESTMENT AND FUNDRAISING ACTIVITY

--  Through June 30, 2008, we have structured investments totaling $145
    million, 51% of which were international. For the comparable period in
    2007, investment volume was $660 million and included the $446 million
    Hellweg Die Profi-Baumärkte GmbH & Co. KG investment.
--  CPA®:17 - Global began fundraising this year.  Through August 5,
    2008, we have raised more than $200 million on CPA®:17 - Global's behalf.
    

GROWTH IN ASSETS UNDER MANAGEMENT

--  W. P. Carey is the advisor to the CPA® REITs, which had assets
    valued at approximately $8.6 billion as of June 30, 2008 -- an 8% increase
    as compared to June 30, 2007.
--  Since 2001, the Company's assets under management on behalf of the
    CPA® REITs have more than tripled.
--  As of June 30, 2008, the occupancy rate of our 18 million square foot
    owned portfolio was approximately 95%. In addition, for the 89 million
    square feet owned by the CPA® REITs, the occupancy rate was more than
    99%.
    

AMSTERDAM OFFICE OPEN

--  In July 2008, we opened an office in Amsterdam to establish a European
    base for the management of our CPA® REITs' growing portfolio of
    international assets. Our European assets under management currently span
    nine countries and are approaching $3 billion.
    

"Obviously, a period-to-period comparison is made difficult by the significant revenue recognized in 2007 when CPA®:16 - Global met its hurdle return," said Gordon F. DuGan, President and Chief Executive Officer. "However, on a comparable basis, we are pleased with our performance as reflected in our adjusted cash flow from operations. This solid performance was all the more significant because of the drop in investment volume we experienced in the second quarter, which reflected both unusually high investment volume in the second quarter of last year and an unusually low investment volume of $88 million for the second quarter of this year. We are already seeing a pickup in investment volume, and have closed investments of $127 million thus far this quarter. In addition, we continue to benefit from strong occupancies across our portfolios, a terrific balance sheet and an ability to grow our business without reliance on the public capital markets. In times of tighter credit markets, we believe there are attractive investment opportunities for sale-leaseback investors and we are very well-positioned today to take advantage of them."


UPCOMING EVENTS

--  Gordon F. DuGan will be speaking on the "Structure for Stability"
    panel at the BMO Capital Markets 2008 North American Real Estate Conference
    in Chicago on September 11, 2008.
--  Benjamin P. Harris will be speaking on the "Investment & the Capital
    Connection" panel at the CPN Net Lease Summit in New York on September 22,
    2008.
    

CONFERENCE CALL & WEBCAST

Please call at least 10 minutes prior to call to register

Time: Thursday, August 7, 2008 at 11:00 AM (ET)

Call-in Number: 1-877-407-0782
(International) +1-201-689-8567

Webcast: www.wpcarey.com/earnings

Podcast: www.wpcarey.com/podcast
Available after 2:00 PM (ET)

Replay Number: 1-877-660-6853
(International) +1-201-612-7415

Replay Access Codes: Account # 286 and Conference ID # 291647. Please note
that both access codes are required for playback. Replay Available until
August 22, 2008 at midnight ET.

W. P. Carey & Co. LLC

W. P. Carey & Co. LLC provides long-term sale-leaseback and build-to-suit financing for companies worldwide and manages a global investment portfolio worth more than $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. Now in our 35th year, the W. P. Carey Group's real estate holdings are highly diversified, comprised of more than 850 commercial and industrial assets spanning 28 industries and 14 countries. 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.

                        W. P. CAREY & CO. LLC

              CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
            (in thousands, except share and per share amounts)

                              Three months ended       Six months ended
                                   June 30,               June 30,
                            ----------------------  ----------------------
                               2008        2007        2008        2007
                            ----------  ----------  ----------  ----------
Revenues
Asset management revenue    $   20,039  $   30,204  $   40,165  $   45,238
Structuring revenue              3,169      53,448       6,585      58,031
Wholesaling revenue              1,488           -       2,628           -
Reimbursed costs from
 affiliates                     11,080       3,244      21,446       6,719
Lease revenues                  19,422      19,031      38,624      37,618
Other real estate income         3,305       3,113       6,427       6,115
                            ----------  ----------  ----------  ----------
                                58,503     109,040     115,875     153,721
                            ----------  ----------  ----------  ----------
Operating Expenses
General and administrative     (15,816)    (23,133)    (31,229)    (35,301)
Reimbursable costs             (11,080)     (3,244)    (21,446)     (6,719)
Depreciation and
 amortization                   (6,279)     (6,737)    (12,370)    (13,472)
Property expenses               (1,362)     (1,669)     (3,740)     (2,787)
Other real estate expenses      (2,146)     (1,301)     (4,215)     (3,825)
                            ----------  ----------  ----------  ----------
                               (36,683)    (36,084)    (73,000)    (62,104)
                            ----------  ----------  ----------  ----------
Other Income and Expenses
Other interest income              679       3,644       1,440       4,242
Income from equity
 investments in real estate
 and CPA(R) REITs                3,934       1,929       8,645       4,367
Minority interest in income       (304)     (3,129)       (393)     (3,406)
Gain on sale of securities,
 foreign currency
 transactions and other, net     1,848         169       4,659         355
Interest expense                (4,532)     (5,389)     (9,575)    (10,002)
                            ----------  ----------  ----------  ----------
                                 1,625      (2,776)      4,776      (4,444)
                            ----------  ----------  ----------  ----------
Income from continuing
 operations before income
 taxes                          23,445      70,180      47,651      87,173
Provision for income taxes      (7,422)    (31,038)    (14,566)    (37,417)
                            ----------  ----------  ----------  ----------
Income from continuing
 operations                     16,023      39,142      33,085      49,756
                            ----------  ----------  ----------  ----------
Discontinued Operations
Income from operations of
 discontinued properties         3,825       1,926       3,864       2,112
Gain on sale of real
 estate, net                         -         962           -         962
                            ----------  ----------  ----------  ----------
Income from discontinued
 operations                      3,825       2,888       3,864       3,074
                            ----------  ----------  ----------  ----------

Net Income                  $   19,848  $   42,030  $   36,949  $   52,830
                            ==========  ==========  ==========  ==========
Basic Earnings Per Share
Income from continuing
 operations                 $     0.41  $     1.02  $     0.85  $     1.31
Income from discontinued
 operations                       0.10        0.08        0.10        0.08
                            ----------  ----------  ----------  ----------
Net income                  $     0.51  $     1.10  $     0.95  $     1.39
                            ==========  ==========  ==========  ==========
Diluted Earnings Per Share
Income from continuing
 operations                 $     0.40  $     1.03  $     0.83  $     1.29
Income from discontinued
 operations                       0.10        0.07        0.10        0.08
                            ----------  ----------  ----------  ----------
Net income                  $     0.50  $     1.10  $     0.93  $     1.37
                            ==========  ==========  ==========  ==========
Weighted Average Shares
 Outstanding
Basic                       39,204,221  38,308,202  39,039,617  38,120,532
                            ==========  ==========  ==========  ==========
Diluted                     40,256,658  40,004,379  40,271,185  39,894,412
                            ==========  ==========  ==========  ==========

Distributions Declared Per
 Share                      $    0.487  $    0.467  $    0.969  $    0.929
                            ==========  ==========  ==========  ==========



                         W. P. CAREY & CO. LLC

            CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                              (in thousands)

                                                  Six months ended June 30,
                                                  ------------------------
                                                      2008         2007
                                                  -----------  -----------
Cash Flows -- Operating Activities
Net income                                        $    36,949  $    52,830
Adjustments to reconcile net income to net cash
 provided by operating activities:
   Depreciation and amortization including
    intangible assets and deferred financing
    costs                                              13,506       14,509
   Income from equity investments in real estate
    and CPA(R) REITs in excess of distributions
    received                                           (1,924)      (1,628)
   Gain on sale of real estate, net                         -         (962)
   Minority interest in income                            393        3,472
   Straight-line rent adjustments                       1,252        1,421
   Management income received in shares of
    affiliates                                        (20,053)     (31,728)
   Unrealized gain on foreign currency
    transactions, warrants and securities              (1,203)        (313)
   Realized gain on foreign currency transactions      (1,565)         (42)
   Stock-based compensation expense                     3,922        2,328
   (Increase) decrease in deferred acquisition
    revenue received                                   (3,538)      16,164
   Decrease (increase) in structuring revenue
    receivable                                         46,695      (44,956)
   (Decrease) increase in income taxes, net            (3,963)       2,802
   Decrease in settlement provision                   (29,979)           -
   Net changes in other operating assets and
    liabilities                                       (13,273)      (2,249)
                                                  -----------  -----------
Net cash provided by operating activities              27,219       11,648
                                                  -----------  -----------
Cash Flows -- Investing Activities
   Distributions received from equity investments
    in real estate and CPA(R) REITs in
    excess of equity income                             3,425       21,716
   Capital contributions to equity investments           (837)           -
   Purchases of real estate and equity
    investments in real estate                           (184)     (40,381)
   Capital expenditures                                (6,455)      (7,361)
   VAT refunded on purchase of real estate              3,189            -
   Proceeds from sales of real estate                       -        6,014
   Funds placed in escrow in connection with the
    sale of property                                        -       (3,340)
   Funds released from escrow in connection with
    the sale of property                                  636            -
   Payment of deferred acquisition revenue to
    affiliate                                            (120)        (524)
                                                  -----------  -----------
Net cash used in investing activities                    (346)     (23,876)
                                                  -----------  -----------
Cash Flows -- Financing Activities
   Distributions paid                                 (48,668)     (35,202)
   Contributions from minority interests                1,320          688
   Distributions to minority interests                 (1,329)        (942)
   Scheduled payments of mortgage principal            (4,698)      (7,719)
   Proceeds from mortgages and credit facilities      101,937      118,617
   Prepayments of mortgage principal and credit
    facilities                                        (73,729)     (68,257)
   Repayment of loan from affiliates                   (7,569)           -
   Payment of financing costs                            (370)      (1,303)
   Proceeds from issuance of shares                    12,743        3,917
   Excess tax benefits associated with
    stock-based compensation awards                       608        1,335
   Repurchase and retirement of shares                 (5,134)      (2,038)
                                                  -----------  -----------
Net cash (used in) provided by financing
 activities                                           (24,889)       9,096
                                                  -----------  -----------
Change in Cash and Cash Equivalents During the
 Period
     Effect of exchange rate changes on cash              298           74
                                                  -----------  -----------
     Net increase (decrease) in cash and cash
      equivalents                                       2,282       (3,058)
   Cash and cash equivalents, beginning of period      12,137       22,108
                                                  -----------  -----------
   Cash and cash equivalents, end of period       $    14,419  $    19,050
                                                  ===========  ===========



                         W. P. CAREY & CO. LLC

                     FINANCIAL HIGHLIGHTS (UNAUDITED)
            (in thousands, except share and per share amounts)

These financial highlights include non-GAAP financial measures, including
earnings before interest, taxes, depreciation and amortization ("EBITDA"),
funds from operations ("FFO") and adjusted cash flow from operating
activities. A description of these non-GAAP financial measures and
reconciliations to the most directly comparable GAAP measures is provided
on the following pages.

                              Three months ended       Six months ended
                                   June 30,               June 30,
                            ----------------------  ----------------------
                               2008        2007        2008        2007
                            ----------- ----------- ----------  ----------
EBITDA
Investment management       $    15,774 $    63,517 $   30,519  $   75,090
Real estate ownership            22,307      22,318     42,941      39,756
                            ----------- ----------- ----------  ----------
Total                       $    38,081 $    85,835 $   73,460  $  114,846
                            =========== =========== ==========  ==========

FFO
Investment management       $    14,664 $    62,561 $   20,125  $   66,410
Real estate ownership            20,887      17,004     36,956      31,721
                            ----------- ----------- ----------  ----------
Total                       $    35,551 $    79,565 $   57,081  $   98,131
                            =========== =========== ==========  ==========

EBITDA Per Share (Diluted)
Investment management       $      0.39 $      1.59 $     0.76  $     1.88
Real estate ownership              0.56        0.56       1.06        1.00
                            ----------- ----------- ----------  ----------
Total                       $      0.95 $      2.15 $     1.82  $     2.88
                            =========== =========== ==========  ==========

FFO Per Share (Diluted)
Investment management       $      0.36 $      1.56 $     0.50  $     1.66
Real estate ownership              0.52        0.43       0.92        0.80
                            ----------- ----------- ----------  ----------
Total                       $      0.88 $      1.99 $     1.42  $     2.46
                            =========== =========== ==========  ==========

Adjusted Cash Flow From
 Operating Activities
Adjusted cash flow                                  $   53,789  $   54,946
                                                    ==========  ==========
Adjusted cash flow per
 share (diluted)                                    $     1.34  $     1.38
                                                    ==========  ==========

Distributions declared per
 share                                              $    0.969  $    0.929
                                                    ==========  ==========
Payout ratio (distributions
 per share/adjusted cash
 flow per share)                                            72%         67%
                                                    ==========  ==========




                            W. P. CAREY & CO. LLC

            RECONCILIATION OF NET INCOME TO EBITDA (UNAUDITED)
            (in thousands, except share and per share amounts)


                              Three months ended       Six months ended
                                   June 30,               June 30,
                            ----------------------  -----------------------
                               2008        2007        2008        2007
                            ----------  ----------- ----------- -----------
Investment Management
Net income                  $    7,123  $    32,100 $    14,054 $    36,489
Adjustments:
  Provision for income
   taxes                         7,556       30,376      14,340      36,514
  Depreciation and
   amortization                  1,095        1,041       2,125       2,087
                            ----------  ----------- ----------- -----------
EBITDA - investment
 management                 $   15,774  $    63,517 $    30,519 $    75,090
                            ==========  =========== =========== ===========
EBITDA per share (diluted)  $     0.39  $      1.59 $      0.76 $      1.88
                            ==========  =========== =========== ===========

Real Estate Ownership
Net income                  $   12,725  $     9,930 $    22,895 $    16,341
Adjustments:
  Interest expense               4,532        5,389       9,575      10,002
  (Benefit from) provision
   for income taxes               (134)         662         226         903
  Depreciation and
  amortization                   5,184        5,696      10,245      11,385
  Reconciling items
   attributable to
   discontinued operations           -          641           -       1,125
                            ----------  ----------- ----------- -----------
EBITDA - real estate
 ownership                  $   22,307  $    22,318 $    42,941 $    39,756
                            ==========  =========== =========== ===========
EBITDA per share (diluted)  $     0.56  $      0.56 $      1.06 $      1.00
                            ==========  =========== =========== ===========

Total Company
EBITDA                      $   38,081  $    85,835 $    73,460 $   114,846
                            ==========  =========== =========== ===========
EBITDA per share (diluted)  $     0.95  $      2.15 $      1.82 $      2.88
                            ==========  =========== =========== ===========
Diluted weighted average
 shares outstanding         40,256,658   40,004,379  40,271,185  39,894,412
                            ==========  =========== =========== ===========

Non-GAAP Financial Disclosure
EBITDA as disclosed represents earnings before interest, taxes,
depreciation and amortization. We believe that EBITDA is a useful
supplemental measure for assessing the performance of our business
segments, although it does not represent net income that is computed in
accordance with GAAP. Accordingly, EBITDA should not be considered an
alternative for net income as an indicator of our financial performance.
EBITDA may not be comparable to similarly titled measures of other
companies.




                            W. P. CAREY & CO. LLC

  RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS (FFO) (UNAUDITED)
            (in thousands, except share and per share amounts)


                              Three months ended       Six months ended
                                   June 30,               June 30,
                            ----------------------  ----------------------
                               2008        2007        2008        2007
                            ----------  ----------  ----------  ----------
Investment Management
Net income                  $    7,123  $   32,100  $   14,054  $   36,489
Amortization, deferred
 taxes and other non-cash
 charges                         4,041      28,261       1,487      25,546
FFO adjustment to earnings
 from equity investments         3,500       2,200       4,584       4,375
                            ----------  ----------  ----------  ----------
FFO -- investment
 management                 $   14,664  $   62,561  $   20,125  $   66,410
                            ==========  ==========  ==========  ==========
FFO per share (diluted)     $     0.36  $     1.56  $     0.50  $     1.66
                            ==========  ==========  ==========  ==========

Real Estate Ownership
Net income                  $   12,725  $    9,930  $   22,895  $   16,341
Gain on sale of real
 estate, net                         -        (962)          -        (962)
Depreciation, amortization
 and other non-cash charges      5,389       5,653       8,950      11,115
Straight-line and other
 rent adjustments                  659         623       1,328       1,456
FFO adjustment to earnings
 from equity investments         2,287       1,972       4,128       4,186
FFO adjustment to minority
 investees' share of
 earnings                         (173)       (212)       (345)       (415)
                            ----------  ----------  ----------  ----------
FFO -- real estate
 ownership                  $   20,887  $   17,004  $   36,956  $   31,721
                            ==========  ==========  ==========  ==========
FFO per share (diluted)     $     0.52  $     0.43  $     0.92  $     0.80
                            ==========  ==========  ==========  ==========

Total Company
FFO                         $   35,551  $   79,565  $   57,081  $   98,131
                            ==========  ==========  ==========  ==========
FFO per share (diluted)     $     0.88  $     1.99  $     1.42  $     2.46
                            ==========  ==========  ==========  ==========
Diluted weighted average
 shares outstanding         40,256,658  40,004,379  40,271,185  39,894,412
                            ==========  ==========  ==========  ==========

Non-GAAP Financial Disclosure
Funds from operations (FFO) is a non-GAAP financial measure that is
commonly used in evaluating real estate companies. Although the National
Association of Real Estate Investment Trusts (NAREIT) has published a
definition of FFO, real estate companies often modify this definition as
they seek to provide financial measures that meaningfully reflect their
operations. FFO should not be considered as an alternative to net income
as an indication of a company's operating performance or to cash flow from
operating activities as a measure of its liquidity. It should be used in
conjunction with GAAP net income. FFO disclosed by other REITs may not
be comparable to our FFO calculation.

NAREIT's definition of FFO adjusts GAAP net income to exclude depreciation
and gains/losses from the sales of properties and adjusts for FFO
applicable to unconsolidated partnerships and joint ventures. We
calculate FFO in accordance with this definition and then include other
adjustments to GAAP net income to adjust for certain non-cash charges
such as amortization of intangibles, deferred income tax benefits and
expenses, straight-line rents, stock compensation, impairment charges on
real estate and unrealized foreign currency exchange gains and losses.
We exclude these items from GAAP net income as they are not the primary
drivers in our decision making process. Our assessment of our operations
is focused on long term sustainability and not on such non-cash items
which may cause short-term fluctuations in net income but that have no
impact on cash flows.




                          W. P. CAREY & CO. LLC

         ADJUSTED CASH FLOW FROM OPERATING ACTIVITIES (UNAUDITED)
            (in thousands, except share and per share amounts)


                                                  Six months ended June 30,
                                                  ------------------------
                                                      2008         2007
                                                  -----------  -----------
Cash flow from operating activities -- as
 reported                                         $    27,219  $    11,648
Adjustments:
CPA(R):16 - Global performance adjustment, net
 (a)                                                  (12,291)      17,763
Settlement payment (b)                                 21,012            -
CPA(R):12/14 Merger -- payment of taxes (c)                 -       20,708
Distributions received from equity investments in
 real estate in excess of equity income (d)             3,223        5,435
Changes in working capital (c)                         14,626         (608)
                                                  -----------  -----------
Adjusted cash flow from operating activities      $    53,789  $    54,946
                                                  ===========  ===========
Adjusted cash flow per share (diluted)            $      1.34  $      1.38
                                                  ===========  ===========

Distributions declared per share                  $     0.969  $     0.929
                                                  ===========  ===========
Payout ratio (distributions per share/adjusted
 cash flow per share)                                      72%          67%
Diluted weighted average shares outstanding        40,271,185   39,894,412
                                                  ===========  ===========

Non-GAAP Financial Disclosure
Adjusted cash flow from operating activities is a non-GAAP financial
measure that represents cash flow from operating activities on a GAAP
basis adjusted for certain timing differences and deferrals as described
below. We believe that adjusted cash flow from operating activities is a
useful supplemental measure for assessing the cash flow generated from our
core operations and is used in evaluating distributions to shareholders.
Adjusted cash flow from operating activities should not be considered as
an alternative for cash flow from operating activities computed on a GAAP
basis as a measure of our liquidity. Adjusted cash flow from operating
activities may not be comparable to similarly titled measures of other
companies.

(a) Amounts (paid)/deferred in lieu of CPA®:16 - Global achieving its
performance criterion, net of a 45% tax provision. In determining cash flow
generated from our core operations, we believe it is more appropriate to
normalize cash flow for the impact of CPA®:16 - Global achieving its
performance criterion, rather than recognizing the entire deferred amount
in the quarter in which the performance criterion was met as this revenue
was actually earned over a three year period.

(b) In March 2008, we entered into a settlement with the SEC with respect
to all matters relating to their investigation. As a result, we paid
$29,979 in the first quarter of 2008, and recognized an offsetting
$8,967 tax benefit in the same period.

(c) Timing differences arising from the payment of certain liabilities
in a period other than that in which the expense is recognized in
determining net income may distort the actual cash flow that our core
operations generate. We adjust our GAAP cash flow from operations to
record such amounts in the period in which the liability was actually
incurred. We believe this is a fairer measure of determining our cash flow
from core operations.

(d) We take a substantial portion of our asset management revenue in
shares of the CPA® REIT funds. To the extent we receive distributions
in excess of the equity income that we recognize, we include such
amounts in our evaluation of cash flow from core operations.

Contact Information

  • COMPANY CONTACT:
    Kristina McMenamin
    W. P. Carey & Co. LLC
    212-492-8995
    Email Contact

    PRESS CONTACT:
    Guy Lawrence
    Ross & Lawrence
    212-308-3333
    Email Contact