SOURCE: W. P. Carey & Co. LLC

February 28, 2008 09:15 ET

W. P. Carey Announces Fourth Quarter and Year-End 2007 Financial Results

NEW YORK, NY--(Marketwire - February 28, 2008) - Investment firm W. P. Carey & Co. LLC (NYSE: WPC) today reported financial results for the fourth quarter and year ended December 31, 2007.

QUARTERLY AND YEAR-END RESULTS

--  Included in our year-end results is a reserve taken in connection with
    an agreement in principle to settle matters relating to a previously
    disclosed U.S. Securities and Exchange Commission (SEC) investigation.
    Excluding this reserve, year-end 2007 revenues, net income and funds from
    operations (FFO) increased over the prior year and were positively impacted
    by a substantial increase in investment volume and full recognition of
    revenues as a result of achieving the preferred return performance hurdle
    for CPA®:16 -- Global.
    
--  Total revenues net of reimbursed expenses for the fourth quarter of
    2007 were $51.2 million, compared to $83.1 million for the fourth quarter
    of 2006, which included revenues resulting from the CPA®:12/14 merger.
    Total revenues net of reimbursed expenses for 2007 increased 22% to $249.3
    million, as compared to $203.9 million for 2006.  Reimbursed expenses are
    excluded from total revenues because they have no impact on net income.
    
--  Net income for the fourth quarter of 2007 was $6 million and net
    income for 2007 was $79.3 million.  Net income for the fourth quarter of
    2007, excluding the reserve taken for the SEC matter, was $27 million, as
    compared to $43.6 million for the same period in 2006.  Net income for
    2007, excluding the reserve taken for the SEC matter, increased 16% to
    $100.3 million, as compared to $86.3 million in 2006.  The impact of the
    reserve on net income was $21 million.
    
--  Diluted earnings per share (EPS) for the fourth quarter of 2007 was
    $0.15 and diluted EPS for 2007 was $2.05.  Diluted EPS for the fourth
    quarter of 2007, excluding the reserve taken for the SEC matter, was $0.68,
    as compared to $1.12 for the same period in 2006.  Diluted EPS for 2007,
    excluding the reserve taken for the SEC matter, increased 16% to $2.58, as
    compared to $2.22 for 2006.
    
--  As per the attached table, FFO for the fourth quarter of 2007 was $2.9
    million, or $0.07 per diluted share, and FFO for 2007 was $133.3 million,
    or $3.34 per diluted share.  FFO for the fourth quarter of 2007, excluding
    the reserve taken for the SEC matter, was $0.83 per diluted share, or $32.9
    million, as compared to $1.39 per diluted share, or $54.9 million, for the
    comparable period in 2006.  FFO for 2007, excluding the reserve for the SEC
    matter, increased 27% to $163.2 million, or $4.09 per diluted share, as
    compared to $128.5 million, or $3.29 per diluted share for 2006.
    
--  Cash flows from operating activities for 2007 decreased to $47.5
    million, as compared to $119.9 million for 2006 due primarily to the impact
    of the CPA®:12/14 merger where in 2006 we recognized $46 million in
    revenues received in cash but paid approximately $21 million in taxes
    related to those revenues in 2007.  This accounted for a $67 million swing
    in cash flow.
    

PROVISION FOR SETTLEMENT

As we have previously disclosed, in 2004 the staff of the SEC began investigating whether, in connection with a public offering of shares of CPA®:15 in late 2002 and early 2003, Carey Financial, our wholly-owned broker-dealer subsidiary, sold such shares without an effective registration statement, and whether that and other SEC filings by the REITs managed by us contained material misrepresentations and omissions, including with respect to payments made by certain of the REITs in the 2000-2003 period to broker-dealers that distributed the REITs' shares.

We have now reached an agreement in principle with the staff of the SEC to settle all matters relating to this investigation. The agreement in principle is subject to approval by the Commission and also to the satisfactory completion of settlement papers, and accordingly the agreement in principle could fail to be implemented or be implemented in a different form. Pursuant to the agreement in principle with the SEC staff, and assuming approval by the Commission, the SEC would file a complaint in federal court alleging violations of certain provisions of the federal securities laws, and seeking to enjoin us from violating those laws, including Section 5 of the Securities Act of 1933, in connection with the offering of shares of CPA®:15, and Section 17(a) of the Securities Act of 1933 and Sections 10(b), 13 and 14 of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder, among others, in connection with the payments to broker-dealers and related disclosures.

Without admitting or denying the allegations in the SEC's complaint, we would consent to the entry of the injunction, which would be subject to court approval. As part of the agreement in principle with the SEC staff, and assuming approval by the Commission, we would expect to make "disgorgement" payments of approximately $20 million, including interest, with the payments being made to certain of our managed REITs, and we would also pay a $10 million civil penalty.

In connection with the agreement in principle, we have established a charge of approximately $30 million, which is included in our fourth quarter 2007 results. We also have recognized an offsetting $8.9 million tax benefit in the same period, resulting in a net charge of approximately $21 million.

SUPPLEMENTAL PERFORMANCE METRICS

--  Earnings before interest, taxes, depreciation and amortization
    (EBITDA) for the fourth quarter of 2007 was $(3.9) million, or $(0.10) per
    diluted share, and EBITDA for 2007 was $91.1 million, or $2.29 per diluted
    share.  EBITDA from our investment management segment, excluding the
    reserve taken for the SEC matter, totaled $0.65 per diluted share, or $26.1
    million this quarter, a decrease from EBITDA of $1.65 per diluted share, or
    $65 million, in the fourth quarter of 2006.  For 2007, EBITDA from this
    segment, excluding the reserve taken for the SEC matter, increased 15% to
    $121.1 million, or $3.04 per diluted share, from $105.7 million, or $2.70
    per diluted share for 2006.
    
--  FFO from our real estate ownership segment in the fourth quarter of
    2007 increased to $0.43 per diluted share, or $17.2 million, from $0.37 per
    diluted share, or $14.6 million in the fourth quarter of 2006.  For 2007,
    FFO from this segment increased 10% to $64.1 million, or $1.61 per diluted
    share, from $58.5 million, or $1.50 per diluted share during 2006.
    
--  For the year ended December 31, 2007, adjusted cash flow from
    operations totaled $84.2 million, as compared to $70.2 million for 2006.
    
--  Further information concerning these non-GAAP supplemental performance
    metrics is presented in the accompanying tables.
    

DISTRIBUTIONS AND SHARE REPURCHASE

--  The Board of Directors raised the quarterly cash distribution to
    $0.477 per share for the fourth quarter 2007.  In addition, we announced
    that the Board declared a special distribution of $0.27 per share.  Both
    distributions were paid on January 15, 2008 to shareholders of record as of
    December 31, 2007.
    
--  Under our current share repurchase program, we may now repurchase up
    to $40 million of our common stock in the open market through March 31,
    2008 as conditions warrant. Through December 31, 2007, we repurchased
    shares totaling $25.5 million.
    

INVESTMENT ACTIVITY

--  In the fourth quarter of 2007, we structured investments totaling
    approximately $171 million on behalf of our CPA® REITs, as compared to
    $269 million during the fourth quarter of 2006.
    
--  In 2007, we structured 22 investments on behalf of our CPA® REITs
    totaling approximately $1.1 billion, as compared to $720 million in 2006.
    Approximately 55% were international transactions.
    

CPA®:17 -- GLOBAL OFFERING

--  In late December 2007, we commenced fundraising for our newest
    offering, CPA®:17 -- Global, an affiliated REIT formed for the purpose of
    investing in a diversified portfolio of income-producing commercial
    properties and other real estate related assets, both domestically and
    internationally.  Through February 27, 2008, we have raised approximately
    $40 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 $8.4 billion on December 31, 2007 -- a 15% increase
    as compared to December 31, 2006.
    
--  Since 2001, the Company's assets under management on behalf of the
    CPA® REITs have more than tripled.
    
--  As of December 31, 2007, the occupancy rate of our 17 million square
    foot owned portfolio was approximately 97%.  In addition, for the 87
    million square feet owned by the CPA® REITs, the occupancy rate was
    approximately 99%.
    

"We are pleased with the strong operating results that we have achieved for 2007," said President and Chief Executive Officer, Gordon F. DuGan. "Our revenues and net income prior to the charge pertaining to the SEC matter were at record levels. We experienced a healthy investment volume and strong cash flows from our existing investments. Additionally, we look forward to final resolution of all matters relating to the SEC investigation and believe we are a stronger and better firm today than we have ever been.

In these turbulent times, we believe that our cycle-tested business model is well-suited for today's environment and we are pleased that we have maintained a conservative financial profile through the past credit cycle. As we are entering a new part of the credit cycle, we will keep a vigilant watch on our existing investments and seek to manage them through what may continue to be a difficult credit market. At the same time, we enter 2008 with a very strong balance sheet and hopeful that the change in the credit cycle will provide us with numerous investment opportunities."

UPCOMING EVENTS

--  Benjamin P. Harris, Head of Domestic Investments, will be speaking on
    a panel at the Real Estate 2008 RealShare Conference on March 6, 2008 from
    1:50 PM to 2:35 PM at The Westin Bonaventure Hotel in Los Angeles,
    California.
    
--  Gordon F. DuGan, President and CEO, will be headlining the "Fact or
    Fiction" discussion at the RealShare NET LEASE conference on April 29, 2008
    at the Marriott Marquis in New York, New York.
    

CONFERENCE CALL & WEBCAST

Please call at least 10 minutes prior to call to register

Date: Thursday, February 28, 2008 at 11:00 AM (ET)

Call-in Number:  1-877-407-8031
(International) +1-201-689-8031

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 # 273699.  Please note
that both access codes are required for playback.  Replay available until
March 14, 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 24 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
            (in thousands, except share and per share amounts)

                                             Years ended December 31,
                                        ----------------------------------
                                           2007        2006        2005
                                        ----------  ----------  ----------
Revenues
Asset management revenue                $   83,051  $   57,633  $   52,332
Structuring revenue                         78,175      22,506      28,197
Incentive, termination and subordinated
 disposition revenue from merger                 -      46,018           -
Reimbursed costs from affiliates            13,782      63,630       9,962
Lease revenues                              75,403      69,197      62,476
Other real estate income                    12,718       8,503      10,273
                                        ----------  ----------  ----------
                                           263,129     267,487     163,240
                                        ----------  ----------  ----------
Operating Expenses
General and administrative                 (61,821)    (41,376)    (44,981)
Provision for settlement                   (29,979)          -           -
Reimbursable costs                         (13,782)    (63,630)     (9,962)
Depreciation and amortization              (25,543)    (25,137)    (20,051)
Property expenses                           (6,245)     (5,984)     (6,155)
Impairment charges                          (1,017)     (1,147)     (5,704)
Other real estate expenses                  (7,690)     (5,881)     (6,327)
                                        ----------  ----------  ----------
                                          (146,077)   (143,155)    (93,180)
                                        ----------  ----------  ----------
Other Income and Expenses
Other interest income                        6,842       3,305       3,507
Income from equity investments in real
 estate and CPA® REITs                      18,357       7,608       5,182
Minority interest in income                 (4,143)       (275)       (264)
Gain on sale of securities, foreign
 currency transactions and other, net        3,114      12,969       1,359
Interest expense                           (20,880)    (17,016)    (15,768)
                                        ----------  ----------  ----------
                                             3,290       6,591      (5,984)
                                        ----------  ----------  ----------
Income from continuing operations
 before income taxes                       120,342     130,923      64,076
Provision for income taxes                 (51,739)    (45,356)    (19,208)
                                        ----------  ----------  ----------
Income from continuing operations           68,603      85,567      44,868
                                        ----------  ----------  ----------
Discontinued Operations
Income from operations of discontinued
 properties                                  2,874       1,178       9,328
Gains on sale of real estate, net           15,486       3,452      10,474
Impairment charges                          (2,317)     (3,357)    (16,066)
Minority interest in income                 (5,394)       (537)          -
                                        ----------  ----------  ----------
Income from discontinued operations         10,649         736       3,736
                                        ----------  ----------  ----------
Net Income                              $   79,252  $   86,303  $   48,604
                                        ==========  ==========  ==========
Basic Earnings Per Share
Income from continuing operations       $     1.80  $     2.27  $     1.19
Income from discontinued operations           0.28        0.02        0.10
                                        ----------  ----------  ----------
Net income                              $     2.08  $     2.29  $     1.29
                                        ==========  ==========  ==========
Diluted Earnings Per Share
Income from continuing operations       $     1.78  $     2.20  $     1.15
Income from discontinued operations           0.27        0.02        0.10
                                        ----------  ----------  ----------
Net income                              $     2.05  $     2.22  $     1.25
                                        ==========  ==========  ==========
Weighted Average Shares Outstanding
Basic                                   38,113,857  37,668,920  37,688,835
                                        ==========  ==========  ==========
Diluted                                 39,868,208  39,093,897  39,020,801
                                        ==========  ==========  ==========

Distributions Declared Per Share        $     1.88  $     1.82  $     1.79
                                        ==========  ==========  ==========


                          W. P. CAREY & CO. LLC
                  Consolidated Statements of Cash Flows
                              (in thousands)


                                                Years ended December 31,
                                              ----------------------------
                                                2007      2006      2005
                                              --------  --------  --------
Cash Flows -- Operating Activities
  Net income                                  $ 79,252  $ 86,303  $ 48,604
  Adjustments to reconcile net income to net
   cash provided by operating activities:
  Depreciation and amortization including
   intangible assets and deferred financing
   costs                                        27,321    27,207    21,942
  Income from equity investments in real
   estate and CPA® REITs in excess of
   distributions received                       (2,296)     (160)      479
  Gains on sale of real estate and
   investments, net                            (15,827)  (14,774)  (10,570)
  Recognition of deferred gain on completion
   of development project                            -         -    (2,000)
  Minority interest in income                    9,537       812       264
  Straight-line rent adjustments                 2,972     3,152     3,776
  Asset management revenue received in shares
   of affiliates                               (55,535)  (31,020)  (31,858)
  Unrealized (gain) loss on foreign currency
   transactions, warrants and securities        (1,659)   (1,128)      779
  Impairment charges                             3,334     4,504    21,770
  Realized (gain) loss on foreign currency
   transactions                                 (1,332)     (488)       19
  Costs paid by issuance of shares                   -         -       201
  Increase (decrease) in income taxes, net       1,796    24,311    (1,725)
  Settlement provision                          29,979         -         -
  Tax charge -- share incentive plan                 -         -       604
  Stock-based compensation expense               5,551     3,453     3,936
  Decrease in deferred acquisition revenue
   received                                     16,164    12,543     8,961
  Increase in structuring revenue receivable   (55,897)   (3,459)   (5,304)
  Net changes in other operating assets and
   liabilities                                   4,111     8,684    (7,171)
                                              --------  --------  --------
Net cash provided by operating activities       47,471   119,940    52,707
                                              --------  --------  --------

Cash Flows -- Investing Activities
  Distributions received from equity
   investments in real estate and CPA®
   REITs in excess of equity income             17,441    13,286     6,164
  Capital contributions made to equity
   investments in real estate                   (3,596)        -         -
  Purchases of real estate and equity
   investments in real estate                  (80,491) (102,199)     (465)
  Capital expenditures                         (15,987)   (4,937)   (2,975)
  Loans to affiliates                           (8,676) (108,000)        -
  Proceeds from repayment of loans to
   affiliates                                    8,676   108,000         -
  Proceeds from sales of property and
   investments                                  42,214    50,053    45,542
  Release of funds from escrow in connection
   with the sale of property                    19,410    10,134         -
  Funds placed in escrow in connection with
   the sale of property                        (19,515)  (10,374)        -
  Payment of deferred acquisition revenue to
   affiliate                                      (524)     (524)     (524)
                                              --------  --------  --------
Net cash (used in) provided by investing
 activities                                    (41,048)  (44,561)   47,742
                                              --------  --------  --------

Cash Flows -- Financing Activities
  Distributions paid                           (71,608)  (68,615)  (67,004)
  Contributions from minority interests          1,703     2,345     1,539
  Distributions to minority interests           (8,168)   (6,226)     (355)
  Scheduled payments of mortgage principal     (16,072)  (11,742)   (9,229)
  Proceeds from mortgages and credit
   facilities                                  189,383   174,501   121,764
  Proceeds from loans from affiliates            7,569         -         -
  Prepayments of mortgage principal and
   credit facilities                          (115,090) (166,660) (151,893)
  Release of funds from escrow in connection
   with the financing of properties                  -     4,031         -
  Payment of financing costs                    (1,350)   (1,601)     (797)
  Proceeds from issuance of shares              20,682     8,660     4,400
  Excess tax benefits associated with
   stock-based compensation awards               1,939       626         -
  Repurchase and retirement of shares          (25,525)   (1,937)   (2,206)
                                              --------  --------  --------
Net cash used in financing activities          (16,537)  (66,618) (103,781)
                                              --------  --------  --------
    Effect of exchange rate changes on cash        143       333      (369)
                                              --------  --------  --------
    Net (decrease) increase in cash and cash
     equivalents                                (9,971)    9,094    (3,701)
Cash and cash equivalents, beginning of year    22,108    13,014    16,715
                                              --------  --------  --------
Cash and cash equivalents, end of year        $ 12,137  $ 22,108  $ 13,014
                                              ========  ========  ========




                          W. P. CAREY & CO. LLC
                     Financial Highlights (Unaudited)
              (in thousands, except share and per share data)

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
                        December 31,            Years ended December 31,
                ----------------------------  ----------------------------
                  2007       2006      2005     2007      2006      2005
                --------  --------- --------- --------  --------  --------
EBITDA
Investment
 management (a) $ (3,906) $  64,954 $  10,583 $ 91,145  $105,683  $ 48,946
Real estate
 ownership        31,123     20,784    14,798   88,228    70,619    57,568
                --------  --------- --------- --------  --------  --------
Total           $ 27,217  $  85,738 $  25,381 $179,373  $176,302  $106,514
                ========  ========= ========= ========  ========  ========

FFO
Investment
 management (a) $(14,281) $  40,236 $   6,620 $ 69,169  $ 70,008  $ 37,603
Real estate
 ownership        17,192     14,647    17,627   64,097    58,529    60,968
                --------  --------- --------- --------  --------  --------
Total           $  2,911  $  54,883 $  24,247 $133,266  $128,537  $ 98,571
                ========  ========= ========= ========  ========  ========

EBITDA Per
 Share
 (Diluted)
Investment
 management (a) $  (0.10) $    1.65 $    0.28 $   2.29  $   2.70  $   1.25
Real estate
 ownership          0.78       0.53      0.38     2.21      1.81      1.48
                --------  --------- --------- --------  --------  --------
Total           $   0.68  $    2.18 $    0.66 $   4.50  $   4.51  $   2.73
                ========  ========= ========= ========  ========  ========

FFO Per Share
 (Diluted)
Investment
 management (a) $  (0.36) $    1.02 $    0.17 $   1.73  $   1.79  $   0.97
Real estate
 ownership          0.43       0.37      0.46     1.61      1.50      1.56
                --------  --------- --------- --------  --------  --------
Total           $   0.07  $    1.39 $    0.63 $   3.34  $   3.29  $   2.53
                ========  ========= ========= ========  ========  ========

Adjusted Cash
 Flow From
 Operating
 Activities
Adjusted cash
 flow                                         $ 84,241  $ 70,159  $ 63,031
                                              ========  ========  ========
Adjusted cash
 flow per share
 (diluted)                                    $   2.11  $   1.79  $   1.62
                                              ========  ========  ========

Distributions
 paid                                         $ 71,608  $ 68,615  $ 67,004
                                              ========  ========  ========
Payout ratio
 (distributions
 paid/adjusted
 cash flow)                                         85%       98%      106%
                                              ========  ========  ========

(a) Includes reserve taken in the fourth quarter of 2007 in connection with
the SEC matter as desribed in the attached press release.





                          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 December 31,
                                        ----------------------------------
                                           2007        2006        2005
                                        ----------  ----------  ----------
Investment Management
Net (loss) income (a)                   $  (12,366) $   32,936  $    5,555
Gain on sale of land                             -           -      (2,000)
Amortization, deferred taxes and other
 non-cash charges                           (2,466)      6,285       1,600
FFO from equity investments                    551       1,015       1,465
                                        ----------  ----------  ----------
FFO -- investment management            $  (14,281) $   40,236  $    6,620
                                        ==========  ==========  ==========
FFO per share (diluted)                 $    (0.36) $     1.02  $     0.17
                                        ==========  ==========  ==========

Real Estate Ownership
Net income                              $   18,379  $   10,693  $    5,933
Gain on sale of real estate, net           (14,865)     (3,637)     (1,355)
Depreciation, amortization and other
 non-cash charges                            4,929       4,692       5,215
Straight-line and other rent
 adjustments                                   964         809       1,119
Impairment charges                           1,017       1,147       5,949
FFO from equity investments                  1,662       1,141       1,368
Minority investees share of FFO              5,106        (198)       (602)
                                        ----------  ----------  ----------
FFO -- real estate ownership            $   17,192  $   14,647  $   17,627
                                        ==========  ==========  ==========
FFO per share (diluted)                 $     0.43  $     0.37  $     0.46
                                        ==========  ==========  ==========

Total Company
FFO (a)                                 $    2,911  $   54,883  $   24,247
                                        ==========  ==========  ==========
FFO per share (diluted) (a)             $     0.07  $     1.39  $     0.63
                                        ==========  ==========  ==========
Diluted weighted average shares
 outstanding                            39,815,933  39,414,532  38,674,396
                                        ==========  ==========  ==========



                                             Years ended December 31,
                                        ----------------------------------
                                              2007        2006        2005
                                        ----------  ----------  ----------
Investment Management
Net (loss) income (a)                   $   36,808  $   53,330  $   24,682
Gain on sale of land                             -           -      (2,000)
Amortization, deferred taxes and other

    non-cash charges                        30,194      11,728       9,923
FFO from equity investments                  2,167       4,950       4,998
                                        ----------  ----------  ----------
FFO -- investment management            $   69,169  $   70,008  $   37,603
                                        ==========  ==========  ==========
FFO per share (diluted)                 $     1.73  $     1.79  $     0.97
                                        ==========  ==========  ==========

Real Estate Ownership
Net income                              $   42,444  $   32,973  $   23,922
Gain on sale of real estate, net           (15,827)     (3,452)    (10,474)
Depreciation, amortization and other

   non-cash charges                         20,272      17,294      17,171
Straight-line and other rent
 adjustments                                 3,080       3,152       3,821
Impairment charges                           3,334       4,504      21,770
FFO from equity investments                  6,312       4,852       5,360
Minority investees share of FFO              4,482        (794)       (602)
                                        ----------  ----------  ----------
FFO -- real estate ownership            $   64,097  $   58,529  $   60,968
                                        ==========  ==========  ==========
FFO per share (diluted)                 $     1.61  $     1.50  $     1.56
                                        ==========  ==========  ==========

Total Company
FFO (a)                                 $  133,266  $  128,537  $   98,571
                                        ==========  ==========  ==========
FFO per share (diluted) (a)             $     3.34  $     3.29  $     2.53
                                        ==========  ==========  ==========
Diluted weighted average shares
 outstanding                            39,868,208  39,093,897  39,020,801
                                        ==========  ==========  ==========

(a) Includes reserve taken in the fourth quarter of 2007 in connection with
the SEC matter as desribed in the attached press release.

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


                                          Three months ended December 31,
                                        ----------------------------------
Investment Management                         2007         2006        2005
                                        ----------  ----------- -----------
Net (loss) income (a)                   $  (12,366) $    32,936 $     5,555
Adjustments:
 Provision for income taxes                  2,473       28,773       3,415
 Depreciation and amortization               5,987        3,245       1,613
                                        ----------  ----------- -----------
EBITDA - investment management          $   (3,906) $    64,954 $    10,583
                                        ==========  =========== ===========
EBITDA per share (diluted)              $    (0.10) $      1.65 $      0.28
                                        ==========  =========== ===========

Real Estate Ownership
Net income                              $   18,379  $    10,693 $     5,933
Adjustments:
 Interest expense                            4,730        3,692       2,930
 Provision for income taxes                    225          283         258
 Depreciation and amortization               6,056        4,108       3,067
 Reconciling items attributable to
    discontinued operations                  1,733        2,008       2,610
                                        ----------  ----------- -----------
EBITDA - real estate ownership          $   31,123  $    20,784 $    14,798
                                        ==========  =========== ===========
EBITDA per share (diluted)              $     0.78  $      0.53 $      0.38
                                        ==========  =========== ===========

Total Company
EBITDA (a)                              $   27,217  $    85,738 $    25,381
                                        ==========  =========== ===========
EBITDA per share (diluted) (a)          $     0.68  $      2.18 $      0.66
                                        ==========  =========== ===========
Diluted weighted average shares
 outstanding                            39,815,933   39,414,532  38,674,396
                                        ==========  =========== ===========




                                             Years ended December 31,
                                        -----------------------------------
Investment Management                          2007        2006        2005
                                        ----------- ----------- -----------
Net (loss) income (a)                   $    36,808 $    53,330 $    24,682
Adjustments:
 Provision for income taxes                  50,158      44,710      18,662
 Depreciation and amortization                4,179       7,643       5,602
                                        ----------- ----------- -----------
EBITDA - investment management          $    91,145 $   105,683 $    48,946
                                        =========== =========== ===========
EBITDA per share (diluted)              $      2.29 $      2.70 $      1.25
                                        =========== =========== ===========

Real Estate Ownership
Net income                              $    42,444 $    32,973 $    23,922
Adjustments:
 Interest expense                            20,880      17,016      15,768
 Provision for income taxes                   1,581         646         546
 Depreciation and amortization               21,364      17,494      14,449
 Reconciling items attributable to
    discontinued operations                   1,959       2,490       2,883
                                        ----------- ----------- -----------
EBITDA - real estate ownership          $    88,228 $    70,619 $    57,568
                                        =========== =========== ===========
EBITDA per share (diluted)              $      2.21 $      1.81 $      1.48
                                        =========== =========== ===========

Total Company
EBITDA (a)                              $   179,373 $   176,302 $   106,514
                                        =========== =========== ===========
EBITDA per share (diluted) (a)          $      4.50 $      4.51 $      2.73
                                        =========== =========== ===========
Diluted weighted average shares
 outstanding                             39,868,208  39,093,897  39,020,801
                                        =========== =========== ===========

(a) Includes reserve taken in the fourth quarter of 2007 in connection with
the SEC matter as desribed in the attached press release.

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
         Adjusted Cash Flow from Operating Activities (Unaudited)
                              (in thousands)


                                               Years ended December 31,
                                           -------------------------------
                                             2007       2006       2005
                                           ---------  ---------  ---------
Cash flow from operating activities -- as
 reported                                  $  47,471  $ 119,940  $  52,707
Adjustments:
CPA®:16 - Global performance adjustment,
 net (a)                                       9,425      2,091        313
CPA®:12/14 Merger -- revenue net of
 costs/taxes (b)                                   -    (23,310)         -
CPA®:12/14 Merger -- payment of taxes
 (c)                                          20,708    (20,708)         -
Distributions received from equity
 investments in real estate in excess
 of equity income (d)                          6,769      4,809      2,840
Changes in working capital (c)                  (132)   (12,663)     7,171
                                           ---------  ---------  ---------
Adjusted cash flow from operating
 activities                                $  84,241  $  70,159  $  63,031
                                           =========  =========  =========

Distributions paid                         $  71,608  $  68,615  $  67,004
                                           =========  =========  =========
Payout ratio (distributions paid/adjusted
 cash flow)                                       85%        98%       106%
                                           ---------  ---------  ---------

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 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) Amounts represent termination and disposition  revenue, net of costs
and a 45% tax provision, earned in connection with the CPA®:12/14 merger.
This revenue is generally earned in connection with events which provide
liquidity or alternatives to the CPA® REIT shareholders. In determining
cash flow generated from our core operations, we believe it is more
appropriate to normalize cash flow for the impact of the net revenue earned
in connection with the CPA®:12/14 merger.

(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:
    Susan Hyde
    W. P. Carey & Co. LLC
    212-492-1151
    Email Contact

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