SOURCE: W. P. Carey & Co. LLC

W. P. Carey & Co. LLC

November 05, 2009 09:15 ET

W. P. Carey Announces Third Quarter Financial Results

NEW YORK, NY--(Marketwire - November 5, 2009) - Investment firm W. P. Carey & Co. LLC (NYSE: WPC) today reported financial results for the third quarter ended September 30, 2009.

QUARTERLY AND NINE-MONTH RESULTS

--  Cash flows from operating activities for the nine months ended
    September 30, 2009 increased to $49.4 million from $47.5 million for the
    prior year period.
--  Adjusted cash flow from operating activities for the nine months ended
    September 30, 2009 was $71.3 million, compared to $70.1 million for the
    comparable period in 2008.
--  Total revenues net of reimbursed expenses for the third quarter of
    2009 were $47.7 million, compared to $55.2 million for the third quarter of
    2008.  Total revenues net of reimbursed expenses for the nine months ended
    September 30, 2009 were $142.5 million, compared to $149.4 million for the
    comparable period in 2008.  Reimbursed expenses are excluded from total
    revenues because they have no impact on net income.
--  Net income for the third quarter of 2009 was $13.4 million, compared
    to $19.2 million for the same period in 2008.  For the nine months ended
    September 30, 2009, net income was $46.0 million, compared to $56.1 million
    for the comparable period in 2008.
--  Funds from operations (FFO) for the third quarter of 2009 were $30.2
    million or $0.75 per diluted share, compared to $33.5 million or $0.83 per
    diluted share for the comparable period in 2008.  FFO for the nine months
    ended September 30, 2009 was $89.2 million or $2.24 per diluted share,
    compared to $90.6 million or $2.25 per diluted share for the comparable
    period in 2008.
--  We incurred impairment charges of $2.4 million for the third quarter
    of 2009 and $4.7 million for the nine months ended September 30, 2009 and
    our CPA® REITs incurred impairment charges of $54.1 million for the
    quarter and $108.7 million for the nine months.  This reduced the amount of
    income we recognize from these equity investments by approximately $3.6
    million for the third quarter and $6.4 million for the nine-month period.
    We received approximately $10.5 million in cash distributions from our
    equity ownership in the CPA® REITs for the nine months ended September
    30, 2009.
--  Further information concerning FFO and adjusted cash flow from
    operating activities, non-GAAP supplemental performance metrics, is
    presented in the accompanying tables.
    

INVESTMENT, FUNDRAISING AND FINANCING ACTIVITY

--  Investment volume, for our own portfolio and on behalf of the CPA®
    REITs, for the nine months ended September 30, 2009 was $395.4 million,
    compared to $404.0 million for the comparable period in 2008.
--  In the third quarter, we closed two international transactions on
    behalf of the REITs -- a $93.6 million sale-leaseback with UK retailer
    Tesco plc, our first Hungarian transaction, and a $27.5 million build-to-
    suit transaction with UK public transport provider National Express for
    their main coach terminal and headquarters building.
--  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.  Through October 31, 2009, CPA®:17 -- Global has raised more
    than $685 million of its up-to $2 billion offering.  For the third quarter
    of 2009, we raised $124.6 million, compared to $100.3 million in the second
    quarter and $71.5 million in the first quarter of this year.
--  Since the beginning of the credit crunch in September 2008, W. P.
    Carey and our CPA® REITs have secured more than $390 million in debt
    financings, including a $120 million loan with the Bank of China, New York
    Branch for The New York Times Company's Midtown Manhattan headquarters that
    was purchased in March 2009.
    

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 September 30,
    2009.
--  As of September 30, 2009, the occupancy rate of our 16.7 million
    square foot owned portfolio was approximately 95%.  In addition, for the
    92.7 million square feet owned by the CPA® REITs, the occupancy rate was
    approximately 97%.
    

DISTRIBUTIONS

--  The Board of Directors raised the quarterly cash distribution to $0.50
    per share for the third quarter of 2009.  The distribution was paid on
    October 15, 2009 to shareholders of record as of September 30, 2009.  This
    was our 34th consecutive quarterly dividend increase.
--  Over the past 36 years, W. P. Carey and the CPA® programs have paid
    more than $3 billion to investors over 800 cash distributions.
    

Gordon DuGan, President and CEO of W. P. Carey, said, "While our FFO for the quarter is down due to lower investment volume for the quarter, our adjusted cash flow year-to-date is up. Our fundraising for CPA®:17 -- Global continued to increase in the third quarter and we are seeing a healthy investment pipeline today. We believe our fundraising efforts provide us the investment capital needed for future acquisitions, which will allow us to continue to grow our assets under management."

CONFERENCE CALL & WEBCAST

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

Time: Thursday, November 5, 2009 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: 434585#
Replay Available until November 19, 2009 at midnight ET.

W. P. Carey & Co. LLC

W. P. Carey & Co. LLC is an investment firm that provides long-term sale-leaseback and build-to-suit financing for companies worldwide and manages a global investment portfolio approaching $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. The W. P. Carey Group's investments are highly diversified, comprising contractual agreements with approximately 300 long-term corporate obligors spanning 28 industries and 15 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.

                          W. P. CAREY & CO. LLC

              Consolidated Statements of Income (Unaudited)
            (in thousands, except share and per share amounts)


                              Three months ended      Nine months ended
                                September 30,           September 30,
                            ----------------------  ----------------------
                               2009        2008        2009        2008
                            ----------  ----------  ----------  ----------
Revenues
  Asset management revenue  $   19,106  $   20,205  $   57,441  $   60,370
  Structuring revenue            5,476      10,818      16,250      17,403
  Wholesaling revenue            1,869       1,517       4,426       4,145
  Reimbursed costs from
   affiliates                   13,503      11,303      33,747      32,749
  Lease revenues                17,448      18,816      52,690      57,187
  Other real estate income       3,768       3,834      11,672      10,261
                            ----------  ----------  ----------  ----------
                                61,170      66,493     176,226     182,115
                            ----------  ----------  ----------  ----------
Operating Expenses
  General and administrative   (14,970)    (17,013)    (48,246)    (48,242)
  Reimbursable costs           (13,503)    (11,303)    (33,747)    (32,749)
  Depreciation and
   amortization                 (5,936)     (6,293)    (18,348)    (18,460)
  Property expenses             (2,236)     (1,735)     (6,235)     (5,267)
  Impairment charges            (2,390)          -      (4,090)          -
  Other real estate
   expenses                     (1,758)     (1,989)     (5,596)     (6,204)
                            ----------  ----------  ----------  ----------
                               (40,793)    (38,333)   (116,262)   (110,922)
                            ----------  ----------  ----------  ----------
Other Income and Expenses
  Other interest income            470         753       1,278       2,193
  Income from equity
   investments in real
   estate and CPA® REITs         2,923       2,272       9,866      10,917
  Gain on sale of
   investments in direct
   financing lease                   -       1,103           -       1,103
  Other income and
   (expenses)                      251      (1,566)      3,532       3,093
  Interest expense              (3,889)     (5,004)    (11,600)    (14,579)
                            ----------  ----------  ----------  ----------
                                  (245)     (2,442)      3,076       2,727
                            ----------  ----------  ----------  ----------
  Income from continuing
   operations before
   income taxes                 20,132      25,718      63,040      73,920
  Provision for income
   taxes                        (6,018)     (5,839)    (15,938)    (20,405)
                            ----------  ----------  ----------  ----------
  Income from continuing
   operations                   14,114      19,879      47,102      53,515
                            ----------  ----------  ----------  ----------
Discontinued Operations
  Income (loss) from
   operations of
   discontinued properties          70         (40)        (30)      3,666
  Gain on sale of
   real estate                       -           -         343           -
  Impairment charges                 -        (538)       (580)       (538)
                            ----------  ----------  ----------  ----------
  Income (loss) from
   discontinued operations          70        (578)       (267)      3,128
                            ----------  ----------  ----------  ----------
Net Income                      14,184      19,301      46,835      56,643
  Add: Net loss
   attributable
   to noncontrolling
   interests                       186         238         559         578
  Less: Net income
   attributable to
   redeemable
   noncontrolling
   interests                    (1,019)       (341)     (1,357)     (1,074)
                            ----------  ----------  ----------  ----------
Net Income Attributable
 to W. P. Carey Members     $   13,351  $   19,198  $   46,037  $   56,147
                            ==========  ==========  ==========  ==========
Basic Earnings Per Share
  Income from continuing
   operations attributable
   to W. P. Carey members   $     0.33  $     0.50  $     1.16  $     1.35
  Income (loss) from
   discontinued operations
   attributable to W. P.
   Carey members                     -       (0.01)      (0.01)       0.08
                            ----------  ----------  ----------  ----------
  Net income attributable
   to W. P. Carey members   $     0.33  $     0.49  $     1.15  $     1.43
                            ==========  ==========  ==========  ==========
Diluted Earnings Per Share
  Income from continuing
   operations attributable
   to W. P. Carey members   $     0.34  $     0.49  $     1.16  $     1.32
  Income (loss) from
   discontinued operations
   attributable to W. P.
   Carey members                     -       (0.01)      (0.01)       0.08
                            ----------  ----------  ----------  ----------
  Net income attributable
   to W. P. Carey members   $     0.34  $     0.48  $     1.15  $     1.40
                            ==========  ==========  ==========  ==========

Weighted Average Shares
 Outstanding
  Basic                     39,727,460  39,294,889  39,163,186  39,125,329
                            ==========  ==========  ==========  ==========
  Diluted                   40,368,946  40,299,073  39,770,196  40,293,094
                            ==========  ==========  ==========  ==========

Amounts Attributable to
 W. P. Carey Members
  Income from continuing
   operations, net of tax   $   13,281  $   19,776  $   46,304  $   53,019
  Income (loss) from
   discontinued
   operations, net of tax           70        (578)       (267)      3,128
                            ----------  ----------  ----------  ----------
  Net income                $   13,351  $   19,198  $   46,037  $   56,147
                            ==========  ==========  ==========  ==========

Distributions Declared
 Per Share                  $    0.500  $    0.492  $    1.494  $    1.461
                            ==========  ==========  ==========  ==========




                          W. P. CAREY & CO. LLC

            Consolidated Statements of Cash Flows (Unaudited)
                              (in thousands)


                                                      Nine months ended
                                                        September 30,
                                                   -----------------------
                                                      2009         2008
                                                   ----------   ----------
Cash Flows -- Operating Activities
Net income                                         $   46,835   $   56,643
Adjustments to net income:
  Depreciation and amortization including
   intangible assets and deferred financing
   costs                                               18,385       20,412
  Income from equity investments in real estate
   and CPA® REITs in excess of distributions
   received                                            (4,303)      (1,224)
  Straight-line rent adjustments                        1,560        1,718
  Management income received in shares of
   affiliates                                         (23,451)     (30,237)
  Gain on sale of real estate and investment
   in direct financing lease                             (343)      (1,103)
  Gain on extinguishment of debt                       (6,991)           -
  Allocation of earnings to profit
   sharing interest                                     3,976            -
  Unrealized (gain) loss on foreign currency
   transactions, warrants and securities                 (257)         324
  Realized gain on foreign currency
   transactions and other                                (260)      (1,567)
  Impairment charges                                    4,670          538
  Stock-based compensation expense                      7,777        5,894
  Decrease in deferred acquisition
   revenue received                                    23,109       46,695
  Increase in structuring revenue receivable           (8,196)      (8,845)
  Decrease in income taxes, net                       (11,137)      (6,527)
  Decrease in settlement provision                          -      (29,979)
  Net changes in other operating assets
   and liabilities                                     (1,991)      (5,250)
                                                   ----------   ----------
Net cash provided by operating activities              49,383       47,492
                                                   ----------   ----------

Cash Flows -- Investing Activities
  Distributions received from equity
   investments in real estate and CPA®
   REITs in excess of equity income                    33,917        7,566
  Capital contributions to equity investments          (3,709)      (1,361)
  Purchases of real estate and equity
   investments in real estate                         (39,632)        (184)
  Capital expenditures                                 (6,110)      (8,355)
  VAT refunded on purchase of real estate                   -        3,189
  Proceeds from sale of real estate and
   securities                                           6,927        5,062
  Proceeds from transfer of profit
   sharing interest                                    21,928            -
  Funds released from escrow in connection
   with the sale of property                                -          636
  Payment of deferred acquisition revenue
   to affiliate                                             -         (120)
                                                   ----------   ----------
Net cash provided by investing activities              13,321        6,433
                                                   ----------   ----------

Cash Flows -- Financing Activities
  Distributions paid                                  (58,787)     (67,987)
  Contributions from noncontrolling interests           2,137        1,957
  Distributions to noncontrolling interests            (4,589)      (1,659)
  Distributions to profit sharing interest             (5,372)           -
  Scheduled payments of mortgage principal             (7,527)      (7,196)
  Proceeds from mortgages and credit facilities       158,994      122,968
  Prepayments of mortgage principal and credit
   facilities                                        (137,436)    (102,427)
  Proceeds from loan from affiliates                    1,625            -
  Repayment of loan from affiliates                         -       (7,569)
  Payment of financing costs, net of
   deposits refunded                                     (849)        (375)
  Proceeds from issuance of shares                      1,356       21,242
  Windfall tax benefits associated with
   stock-based compensation awards                        275          697
  Repurchase and retirement of shares                 (10,686)      (5,134)
                                                   ----------   ----------
Net cash used in financing activities                 (60,859)     (45,483)
                                                   ----------   ----------

Change in Cash and Cash Equivalents
 During the Period
    Effect of exchange rate changes on cash               364          (94)
                                                   ----------   ----------
    Net increase in cash and cash equivalents           2,209        8,348
  Cash and cash equivalents, beginning of period       16,799       12,137
                                                   ----------   ----------
  Cash and cash equivalents, end of period         $   19,008   $   20,485
                                                   ==========   ==========




                          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      Nine months ended
                                September 30,           September 30,
                            ----------------------  ----------------------
                               2009        2008        2009        2008
                            ----------  ----------  ----------  ----------
EBITDA
Investment management       $   11,789  $   18,207  $   35,287  $   48,726
Real estate ownership           17,412      18,229      56,791      61,170
                            ----------  ----------  ----------  ----------
Total                       $   29,201  $   36,436  $   92,078  $  109,896
                            ==========  ==========  ==========  ==========

FFO
Investment management       $   12,788  $   17,579  $   38,748  $   37,704
Real estate ownership           17,445      15,963      50,455      52,919
                            ----------  ----------  ----------  ----------
Total                       $   30,233  $  33,542   $   89,203  $   90,623
                            ==========  ==========  ==========  ==========

EBITDA Per Share (Diluted)
Investment management       $     0.29  $     0.45  $     0.89  $     1.21
Real estate ownership             0.43        0.45        1.43        1.52
                            ----------  ----------  ----------  ----------
Total                       $     0.72  $     0.90  $     2.32  $     2.73
                            ==========  ==========  ==========  ==========

FFO Per Share (Diluted)
Investment management       $     0.32  $     0.43  $     0.97  $     0.94
Real estate ownership             0.43        0.40        1.27        1.31
                            ----------  ----------  ----------  ----------
Total                       $     0.75  $     0.83  $     2.24  $     2.25
                            ==========  ==========  ==========  ==========

Adjusted Cash Flow From
 Operating Activities
Adjusted cash flow                                  $   71,300  $   70,081
                                                    ==========  ==========
Adjusted cash flow per
 share (diluted)                                    $     1.79  $     1.74
                                                    ==========  ==========

Distributions declared per
 share                                              $    1.494  $    1.461
                                                    ==========  ==========
Payout ratio (distributions
 per share/adjusted cash
 flow per share)                                            83%         84%
                                                    ==========  ==========




                          W. P. CAREY & CO. LLC

            Reconciliation of Net Income to EBITDA (Unaudited)
            (in thousands, except share and per share amounts)


                              Three months ended      Nine months ended
                                September 30,           September 30,
                            ----------------------  ----------------------
                               2009        2008        2009        2008
                            ----------  ----------  ----------  ----------
Investment Management
Net income from investment
 management attributable
 to W. P. Carey members     $    5,059  $   11,201  $   17,718  $   25,255
Adjustments:
  Provision for income
   taxes                         5,606       5,846      14,811      20,186
  Depreciation and
   amortization                  1,124       1,160       2,758       3,285
                            ----------  ----------  ----------  ----------
EBITDA - investment
 management                 $   11,789  $   18,207  $   35,287  $   48,726
                            ==========  ==========  ==========  ==========
EBITDA per share (diluted)  $     0.29  $     0.45  $     0.89  $     1.21
                            ==========  ==========  ==========  ==========

Real Estate Ownership
Net income from real estate
 ownership attributable to
 W. P. Carey members        $    8,292  $    7,997  $   28,319  $   30,892
Adjustments:
  Interest expense               3,889       5,004      11,600      14,579
  Provision for income
   taxes                           412          (7)      1,127         219
  Depreciation and
   amortization                  4,812       5,133      15,590      15,175
  Reconciling items
   attributable to
   discontinued operations           7         102         155         305
                            ----------  ----------  ----------  ----------
EBITDA - real estate
 ownership                  $   17,412  $   18,229  $   56,791  $   61,170
                            ==========  ==========  ==========  ==========
EBITDA per share (diluted)  $     0.43  $     0.45  $     1.43  $     1.52
                            ==========  ==========  ==========  ==========

Total Company
EBITDA                      $   29,201  $   36,436  $   92,078  $  109,896
                            ==========  ==========  ==========  ==========
EBITDA per share (diluted)  $     0.72  $     0.90  $     2.32  $     2.73
                            ==========  ==========  ==========  ==========
Diluted weighted average
 shares outstanding         40,368,946  40,299,073  39,770,196  40,293,094
                            ==========  ==========  ==========  ==========


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      Nine months ended
                                September 30,           September 30,
                            ----------------------  ----------------------
                               2009        2008        2009        2008
                            ----------  ----------  ----------  ----------
Investment Management
Net income from investment
 management attributable
 to W. P. Carey members     $    5,059  $   11,201  $   17,718  $   25,255
Amortization, deferred
 taxes and other non-cash
 charges                         1,247       2,290       5,166       3,777
FFO from equity investments      6,482       4,088      15,864       8,672
                            ----------  ----------  ----------  ----------
FFO -- investment
 management                 $   12,788  $   17,579  $   38,748  $   37,704
                            ==========  ==========  ==========  ==========
FFO per share (diluted)     $     0.32  $     0.43  $     0.97  $     0.94
                            ==========  ==========  ==========  ==========

Real Estate Ownership
Net income from real estate
 ownership attributable
 to W. P. Carey members     $    8,292  $    7,997  $   28,319  $   30,892
Gain on sale of direct
 financing lease                     -      (1,103)          -      (1,103)
Gain on sale of real
 estate, net                         -           -        (343)          -
Gain on extinguishment
 of debt, net (a)                    -           -      (2,796)          -
Depreciation, amortization
 and other non-cash charges      4,189       6,764      14,537      15,714
Straight-line and other
 rent adjustments                  396        (613)        808         715
Impairment charges               2,390         538       4,670         538
FFO from equity investments      2,274       2,551       5,687       6,679
Noncontrolling interests'
 share of FFO                      (96)       (171)       (427)       (516)
                            ----------  ----------  ----------  ----------
FFO -- real estate
 ownership                  $   17,445  $   15,963  $   50,455  $   52,919
                            ==========  ==========  ==========  ==========
FFO per share (diluted)     $     0.43  $     0.40  $     1.27  $     1.31
                            ==========  ==========  ==========  ==========

Total Company
FFO                         $   30,233  $   33,542  $   89,203  $   90,623
                            ==========  ==========  ==========  ==========
FFO per share (diluted)     $     0.75  $     0.83  $     2.24  $     2.25
                            ==========  ==========  ==========  ==========
Diluted weighted average
 shares outstanding         40,368,946  40,299,073  39,770,196  40,293,094
                            ==========  ==========  ==========  ==========


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.

(a) In January 2009, Carey Storage repaid, in full, the $35 million
    outstanding balance on its secured credit facility for $28 million and
    recognized a gain of $7 million on the repayment of this debt at a
    discount, inclusive of profit sharing interest of $4.2 million.




                          W. P. CAREY & CO. LLC

         Adjusted Cash Flow from Operating Activities (Unaudited)
            (in thousands, except share and per share amounts)


                                                      Nine months ended
                                                        September 30,
                                                   -----------------------
                                                      2009         2008
                                                   ----------   ----------
Cash flow from operating activities
 -- as reported                                    $   49,383   $   47,492
Adjustments:
Distributions received from equity investments
 in real estate in excess of equity income (a)         15,285        7,265
Contributions received from noncontrolling
 interests, net (b)                                      (382)           -
Changes in working capital (c)                          7,014        6,603
CPA®:16 - Global performance adjustment,
 net (d)                                                    -      (12,291)
Settlement payment (e)                                      -       21,012
                                                   ----------   ----------
Adjusted cash flow from operating activities       $   71,300   $   70,081
                                                   ==========   ==========
Adjusted cash flow per share (diluted)             $     1.79   $     1.74
                                                   ==========   ==========

Distributions declared per share                   $    1.494   $    1.461
                                                   ==========   ==========
Payout ratio (distributions per share/adjusted
 cash flow per share)                                      83%          84%
                                                   ==========   ==========

Diluted weighted average shares outstanding        39,770,196   40,293,094
                                                   ==========   ==========


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) 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.

(b) Represents noncontrolling interests' share of contributions/
    distributions made by ventures that we consolidate in our financial
    statements. This adjustment in the calculation of adjusted cash flow
    from operating activities was introduced during the fourth quarter of
    2008 because we believe that it results in a more accurate presentation
    of this supplemental measure.

(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 operating
    activities 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) Amounts 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 (second quarter of 2007), as this revenue was
    actually earned over a three year period.

(e) 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
    $30 million in the first quarter of 2008 and recognized an offsetting
    $9 million tax benefit in the same period.

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