SOURCE: W. P. Carey & Co. LLC

W. P. Carey & Co. LLC

February 25, 2010 09:15 ET

W. P. Carey Announces Fourth Quarter and Year-End 2009 Financial Results

NEW YORK, NY--(Marketwire - February 25, 2010) - Investment firm W. P. Carey & Co. LLC (NYSE: WPC) today reported financial results for the fourth quarter and year ended December 31, 2009.

QUARTERLY AND YEAR-END RESULTS

-- Cash flows from operating activities for the year ended December 31,
   2009 increased to $74.5 million from $63.2 million for the prior year.
-- Adjusted cash flow from operating activities for the year ended December
   31, 2009 increased to $93.9 million, compared to $89.4 million for 2008.
-- Total revenues net of reimbursed expenses for the fourth quarter of 2009
   were $48.2 million, compared to $51.6 million for the fourth quarter of
   2008. Total revenues net of reimbursed expenses for the year ended
   December 31, 2009 were $187.2 million, compared to $197.4 million for
   2008. Reimbursed expenses are excluded from total revenues because they
   have no impact on net income.
-- Net income for the fourth quarter of 2009 was $23.0 million, compared
   to $21.9 million for the same period in 2008. For the year ended
   December 31, 2009, net income was $69.0 million, compared to
   $78.0 million for 2008.
-- For the fourth quarter of 2009, funds from operations, as adjusted
   (AFFO), were $33.7 million or $0.83 per diluted share, compared to
   $33.8 million or $0.84 per diluted share for the same period in 2008.
   AFFO for the year ended December 31, 2009 was $122.9 million or $3.09
   per diluted share, compared to $124.5 million or $3.09 per diluted share
   for 2008.
-- During 2009, we recorded impairment charges of $10.4 million. We
   currently estimate that our affiliated CPA® REITs will record
   impairment charges aggregating approximately $170.0 million during
   2009, which reduced the amount of income we recognize from these
   equity investments by approximately $11.5 million for the year. We
   received approximately $14.2 million in cash distributions from our
   equity ownership in the CPA® REITs for the year ended December 31,
   2009.
-- Further information concerning AFFO 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 year ended December 31, 2009 was $547.7 million,
   compared to $457.0 million for 2008. International investments comprised
   36% of our total investments during 2009, as compared to 46% during
   2008, and we expect that international transactions will continue to
   form a significant portion of the investments we structure.
-- In the fourth quarter, we closed four transactions on behalf of the
   CPA® REITs: a $15.0 million sale leaseback with OBI Group, which is
   our fourth transaction with this German DIY retailer; a $45.0 million
   acquisition of US Oncology's corporate headquarters; a $33.0 million
   acquisition of Mori Seiki's North American headquarters; and a
   $51.0 million sale leaseback with Spanish food retailer Eroski, which
   was the first tranche of a total $104.0 million transaction that we
   completed in February 2010.
-- We continue to raise investor capital through our latest CPA® REIT
   offering, CPA®:17 - Global, so that we may take advantage of
   attractive investment opportunities that we believe are afforded by
   the current market environment. To date, CPA®:17 - Global has raised
   more than $850.0 million of its up-to $2.0 billion offering. Generally,
   our month over month fundraising increased in 2009; we raised
   $141.5 million in the fourth quarter, which represented an increase
   of 98%, 41% and 14% over the first, second and third quarters of 2009,
   respectively.
-- We have begun to see some improvements in the financing markets and
   have been successful on refinancing maturing debt or obtaining financing
   for new transactions. During 2009, W. P. Carey and our CPA® REITs
   secured approximately $358.5 million in debt financings, including a
   $120.0 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 approximately $8.0 billion and total assets of approximately
   $8.4 billion as of December 31, 2009.
-- As of December 31, 2009, the occupancy rate of our 14 million square
   foot owned portfolio was approximately 94%. In addition, for the
   92 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 $0.502
   per share for the fourth quarter of 2009, marking our 35th consecutive
   distribution increase. In addition, as a result of an increase in our
   2009 taxable income, the Board declared a special distribution of $0.30
   per share in the fourth quarter. Both distributions were paid on January
   15, 2010 to shareholders of record as of December 31, 2009.

Gordon DuGan, President and CEO of W. P. Carey, said, "During 2009, we were able to raise funds, structure attractive investments, finance acquisitions, refinance maturing debt and effectively manage our existing property portfolios. Consequently, despite the many challenges that continued to impact the markets and our tenants, we succeeded in generating stable cash flow and in turn, continued to pay out increasing distributions to our investors.

"We are excited for the opportunities 2010 holds; with CPA®:17 funds raised now exceeding $850.0 million, we continue to see strong investor preference for long term income producing investments, and as a result, we feel we are well positioned to maintain our role as a leading provider of long term capital to creditworthy corporations and property owners worldwide."

CONFERENCE CALL & WEBCAST

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

Time: Thursday, February 25, 2010 at 1:00 PM (ET)

Call-in Number: 800-860-2442

(International) +1-412-858-4600

Webcast: www.wpcarey.com/earnings

Podcast: www.wpcarey.com/podcast

Available after 4:00 PM (ET)

Replay Number: 877-344-7529

(International) +1-412-317-0088

Replay Passcode: 437628#

Replay Available until March 11, 2010 at midnight ET.

W. P. Carey & Co. LLC

W. P. Carey & Co. LLC (NYSE: WPC) is an investment management company that provides long term sale leaseback and build to suit financing for companies worldwide and manages a global investment portfolio approaching $10 billion. Through its CPA® series of income-generating, non-traded REITs, W. P. Carey helps companies and private equity firms unlock capital tied up in real estate assets. The W. P. Carey Group's investments are highly diversified, comprising contractual agreements with approximately 275 long-term corporate obligors spanning 28 industries and 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
            (in thousands, except share and per share amounts)


                                             Years ended December 31,
                                        ----------------------------------
                                           2009        2008        2007
                                        ----------  ----------  ----------
Revenues
Asset management revenue                $   76,621  $   80,714  $   83,051
Structuring revenue                         23,273      20,236      78,175
Wholesaling revenue                          6,550       5,129          27
Reimbursed costs from affiliates            48,715      41,179      13,782
Lease revenues                              65,493      70,696      70,207
Other real estate income                    15,224      20,670      12,714
                                        ----------  ----------  ----------
                                           235,876     238,624     257,956
                                        ----------  ----------  ----------

Operating Expenses
General and administrative                 (62,615)    (62,590)    (61,846)
Reimbursable costs                         (48,715)    (41,179)    (13,782)
Depreciation and amortization              (23,624)    (24,428)    (24,247)
Property expenses                           (8,128)     (7,259)     (5,908)
Other real estate expenses                  (7,308)     (8,196)     (7,690)
Impairment charges                          (9,525)       (473)       (420)
Provision for settlement                         -           -     (29,979)
                                        ----------  ----------  ----------
                                          (159,915)   (144,125)   (143,872)
                                        ----------  ----------  ----------

Other Income and Expenses
Other interest income                        1,714       2,884       6,842
Income from equity investments in
 real estate and CPA®
 REITs                                      13,425      14,198      18,357
Gain on sale of investment in direct
 financing lease                                 -       1,103           -
Other income and (expenses)                  7,317       1,444       3,114
Interest expense                           (15,189)    (18,858)    (20,266)
                                        ----------  ----------  ----------
                                             7,267         771       8,047
                                        ----------  ----------  ----------
Income from continuing operations
 before income taxes                        83,228      95,270     122,131
Provision for income taxes                 (22,793)    (23,521)    (51,739)
                                        ----------  ----------  ----------
Income from continuing operations           60,435      71,749      70,392
                                        ----------  ----------  ----------
Discontinued Operations
Income from operations of discontinued
 properties                                  3,331       7,394       5,825
Gains on sale of real estate, net            7,701           -      15,486
Impairment charges                            (899)       (538)     (2,914)
                                        ----------  ----------  ----------
Income from discontinued operations         10,133       6,856      18,397
                                        ----------  ----------  ----------
Net Income                                  70,568      78,605      88,789
Add: Net loss (income) attributable to
 noncontrolling interests                      713         950      (4,781)
Less: Net income attributable to
 redeemable noncontrolling interests        (2,258)     (1,508)     (4,756)
                                        ----------  ----------  ----------
Net Income Attributable to W. P. Carey
 Members                                $   69,023  $   78,047  $   79,252
                                        ==========  ==========  ==========
Basic Earnings Per Share
Income from continuing operations
 attributable to W. P. Carey members    $     1.48  $     1.82  $     1.74
Income from discontinued operations
 attributable to W. P. Carey members          0.26        0.18        0.34
                                        ----------  ----------  ----------
Net income attributable to W. P. Carey
 members                                $     1.74  $     2.00  $     2.08
                                        ==========  ==========  ==========
Diluted Earnings Per Share
Income from continuing operations
 attributable to W. P. Carey members    $     1.49  $     1.80  $     1.71
Income from discontinued operations
 attributable to W. P. Carey members          0.25        0.17        0.34
                                        ----------  ----------  ----------
Net income attributable to W. P. Carey
 members                                $     1.74  $     1.97  $     2.05
                                        ==========  ==========  ==========
Weighted Average Shares Outstanding
Basic                                   39,019,709  39,202,520  38,113,857
                                        ==========  ==========  ==========
Diluted                                 39,712,735  40,221,112  39,868,208
                                        ==========  ==========  ==========
Amounts Attributable to W. P. Carey
 Members
Income from continuing operations, net
 of tax                                 $   58,890  $   71,191  $   66,249
Income from discontinued operations,
 net of tax                                 10,133       6,856      13,003
                                        ----------  ----------  ----------
Net income                              $   69,023  $   78,047  $   79,252
                                        ==========  ==========  ==========





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


                                                Years ended December 31,
                                              ----------------------------
                                                2009      2008      2007
                                              --------  --------  --------
Cash Flows -- Operating Activities
Net income                                    $ 70,568  $ 78,605  $ 88,789
Adjustments to net income:
  Depreciation and amortization including
   intangible assets and deferred financing
   costs                                        24,476    27,197    27,321
  (Income) loss from equity investments in
   real estate and CPA® REITs in excess of
   distributions received                       (2,258)    1,866    (2,296)
  Straight-line rent adjustments                 2,223     2,227     2,972
  Gains on sale of real estate and investment
   in direct financing lease                    (7,701)   (1,103)  (15,827)
  Gain on lease termination                          -    (4,998)        -
  Gain on extinguishment of debt                (6,991)        -         -
  Allocation of earnings to profit sharing
   interest                                      3,900         -         -
  Management income received in shares of
   affiliates                                  (31,721)  (40,717)  (55,535)
  Unrealized (gain) loss on foreign currency
   transactions, warrants and securities          (174)    2,656    (1,659)
  Realized gain on foreign currency
   transactions and other                         (257)   (2,250)   (1,332)
  Impairment charges                            10,424     1,011     3,334
  Stock-based compensation expense               9,336     7,278     5,551
  Decrease in deferred acquisition revenue
   receivable                                   25,068    48,266    16,164
  Increase in structuring revenue receivable   (11,672)  (10,512)  (55,897)
  (Decrease) increase in income taxes, net      (9,276)   (8,079)    1,796
  (Decrease) increase in settlement provision        -   (29,979)   29,979
  Net changes in other operating assets and
   liabilities                                  (1,401)   (8,221)    4,111
                                              --------  --------  --------
Net cash provided by operating activities       74,544    63,247    47,471
                                              --------  --------  --------

Cash Flows -- Investing Activities
  Distributions received from equity
   investments in real estate and CPA® REITs
   in excess of equity income                   39,102    19,852    17,441
  Capital contributions made to equity
   investments in real estate                   (2,872)   (1,769)   (3,596)
  Purchases of real estate and equity
   investments in real estate                  (39,632)     (201)  (80,491)
  Capital expenditures                          (7,775)  (14,051)  (15,987)
  Proceeds from sales of real estate, net
   investment in direct financing lease and
   securities                                   43,487     5,062    42,214
  Proceeds from transfer of profit sharing
   interest                                     21,928         -         -
  Funds placed in escrow in connection with
   the sale of property                        (36,132)        -   (19,515)
  Funds released from escrow in connection
   with the sale of property                         -       636    19,410
  Loans to affiliates                                -         -    (8,676)
  Proceeds from repayment of loans to
   affiliates                                        -         -     8,676
  VAT refunded on purchase of real estate            -     3,189         -
  Payment of deferred acquisition revenue to
   affiliate                                         -      (120)     (524)
                                              --------  --------  --------
Net cash provided by (used in) investing
 activities                                     18,106    12,598   (41,048)
                                              --------  --------  --------

Cash Flows -- Financing Activities
  Distributions paid                           (78,618)  (87,700)  (71,608)
  Contributions from noncontrolling interests    2,947     2,582     1,703
  Distributions to noncontrolling interests     (5,505)   (5,607)   (8,168)
  Purchase of noncontrolling interests         (15,380)        -         -
  Distributions to profit sharing interest      (5,645)        -         -
  Scheduled payments of mortgage principal      (9,534)   (9,678)  (16,072)
  Proceeds from credit facilities              150,500   129,300   182,781
  Prepayments of credit facilities            (148,518) (111,572) (102,000)
  Proceeds from mortgage financing              42,495    10,137     6,602
  Prepayments of mortgage principal            (13,974)        -   (13,090)
  Proceeds from loans from affiliates            1,625         -     7,569
  Repayment of loans from affiliates            (1,770)   (7,569)        -
  Funds placed in escrow in connection with
   financing                                         -      (400)        -
  Payment of financing costs, net of deposits
   refunded                                       (862)     (375)   (1,350)
  Proceeds from issuance of shares               1,507    23,350    20,682
  Windfall tax benefits associated with
   stock-based compensation awards                 143     2,156     1,939
  Repurchase and retirement of shares          (10,686)  (15,413)  (25,525)
                                              --------  --------  --------
Net cash used in financing activities          (91,275)  (70,789)  (16,537)
                                              --------  --------  --------

Change in Cash and Cash Equivalents During
 the Year
  Effect of exchange rate changes on cash          276      (394)      143
                                              --------  --------  --------
  Net increase (decrease) in cash and cash
   equivalents                                   1,651     4,662    (9,971)
  Cash and cash equivalents, beginning of year  16,799    12,137    22,108
                                              --------  --------  --------
  Cash and cash equivalents, end of year      $ 18,450  $ 16,799  $ 12,137
                                              ========  ========  ========





                          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 - as adjusted ("AFFO") 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               Years ended
                      December 31,                  December 31,
              ----------------------------- ------------------------------
                2009      2008      2007      2009      2008       2007
              --------- --------- --------  --------  ---------  ---------

EBITDA
Investment
 management   $  18,892 $  13,079 $ (3,906) $ 54,179  $  61,805  $  91,145
Real estate
 ownership       20,883    23,238   31,123    77,674     84,408     88,228
              --------- --------- --------  --------  ---------  ---------
Total         $  39,775 $  36,317 $ 27,217  $131,853  $ 146,213  $ 179,373
              ========= ========= ========  ========  =========  =========

AFFO
Investment
 management   $  16,802 $  11,415 $(14,281) $ 55,550  $  49,119  $  69,169
Real estate
 ownership       16,871    22,412   17,192    67,326     75,331     64,097
              --------- --------- --------  --------  ---------  ---------
Total         $  33,673 $  33,827 $  2,911  $122,876  $ 124,450  $ 133,266
              ========= ========= ========  ========  =========  =========

EBITDA Per
 Share
 (Diluted)
Investment
 management   $    0.47 $    0.32 $  (0.10) $   1.36  $    1.54  $    2.29
Real estate
 ownership         0.52      0.58     0.78      1.96       2.10       2.21
              --------- --------- --------  --------  ---------  ---------
Total         $    0.99 $    0.90 $   0.68  $   3.32  $    3.64  $    4.50
              ========= ========= ========  ========  =========  =========

AFFO Per
 Share
 (Diluted)
Investment
 management   $    0.41 $    0.28 $  (0.36) $   1.39  $    1.22  $    1.73
Real estate
 ownership         0.42      0.56     0.43      1.70       1.87       1.61
              --------- --------- --------  --------  ---------  ---------
Total         $    0.83 $    0.84 $   0.07  $   3.09  $    3.09  $    3.34
              ========= ========= ========  ========  =========  =========

Adjusted Cash
 Flow From
 Operating
 Activities

Adjusted cash
 flow                                       $ 93,880  $  89,385  $  84,241
                                            ========  =========  =========
Adjusted cash
 flow per
 share
 (diluted)                                  $   2.36  $    2.22  $    2.11
                                            ========  =========  =========

Distributions
 declared per
 share                                      $  1.996  $   1.955  $   1.878
                                            ========  =========  =========
Payout ratio
 (distributions
 per share/adjusted
 cash flow per
 share)                                           85%        88%        89%
                                            ========  =========  =========





                          W. P. CAREY & CO. LLC
        Financial Results - Adjusted for Comparability (Unaudited)
            (in thousands, except share and per share amounts)


                                          Three months ended December 31,
                                        -----------------------------------
                                           2009        2008        2007
                                        ----------- ----------- -----------
Net Income
Net income                              $    22,986 $    21,900 $     6,013
                                        =========== =========== ===========
Net income per share (diluted)          $      0.59 $      0.56 $      0.15
                                        =========== =========== ===========
Items that affect comparability:
  SEC Settlement (a)                              -           -      21,012
  CPA®:16 - Global performance
   adjustment, net (b)                            -           -           -
  Out-of-period adjustment (c)                    -           -           -
                                        ----------- ----------- -----------
                                                  -           -      21,012
                                        ----------- ----------- -----------
Net income - adjusted for comparability $    22,986 $    21,900 $    27,025
                                        =========== =========== ===========
Net income per share (diluted) -
 adjusted for comparability             $      0.59 $      0.56 $      0.68
                                        =========== =========== ===========

EBITDA
EBITDA                                  $    39,775 $    36,317 $    27,217
                                        =========== =========== ===========
EBITDA per share (diluted)              $      0.99 $      0.90 $      0.68
                                        =========== =========== ===========
Items that affect comparability:
  SEC Settlement (a)                              -           -      29,979
  CPA®:16 - Global performance
   adjustment, net (b)                            -           -           -
                                        ----------- ----------- -----------
                                                  -           -      29,979
                                        ----------- ----------- -----------
EBITDA - adjusted for comparability     $    39,775 $    36,317 $    57,196
                                        =========== =========== ===========
EBITDA per share (diluted) - adjusted
 for comparability                      $      0.99 $      0.90 $      1.44
                                        =========== =========== ===========

AFFO
AFFO                                    $    33,673 $    33,827 $     2,911
                                        =========== =========== ===========
AFFO per share (diluted)                $      0.83 $      0.84 $      0.07
                                        =========== =========== ===========
Items that affect comparability:
  SEC Settlement (a)                              -           -      21,012
  CPA®:16 - Global performance
   adjustment, net (b)                            -           -           -
                                        ----------- ----------- -----------
                                                  -           -      21,012
                                        ----------- ----------- -----------
AFFO - adjusted for comparability       $    33,673 $    33,827 $    23,923
                                        =========== =========== ===========
AFFO per share (diluted) - adjusted for
 comparability                          $      0.83 $      0.84 $      0.60
                                        =========== =========== ===========

Diluted weighted average shares
 outstanding                             40,390,393  40,466,930  39,815,933
                                        =========== =========== ===========



                                             Years ended December 31,
                                        -----------------------------------
                                           2009        2008        2007
                                        ----------- ----------- ----------
Net Income
Net income                              $    69,023 $    78,047 $   79,252
                                        =========== =========== ==========
Net income per share (diluted)          $      1.74 $      1.97 $     2.05
                                        =========== =========== ==========
Items that affect comparability:
  SEC Settlement (a)                              -           -     21,012
  CPA®:16 - Global performance
   adjustment, net (b)                            -           -    (21,600)
  Out-of-period adjustment (c)                    -           -     (3,500)
                                        ----------- ----------- ----------
                                                  -           -     (4,088)
                                        ----------- ----------- ----------
Net income - adjusted for comparability $    69,023 $    78,047 $   75,164
                                        =========== =========== ==========
Net income per share (diluted) -
 adjusted for comparability             $      1.74 $      1.97 $     1.95
                                        =========== =========== ==========

EBITDA
EBITDA                                  $   131,853 $   146,213 $  179,373
                                        =========== =========== ==========
EBITDA per share (diluted)              $      3.32 $      3.64 $     4.50
                                        =========== =========== ==========
Items that affect comparability:
  SEC Settlement (a)                              -           -     29,979
  CPA®:16 - Global performance
   adjustment, net (b)                            -           -    (39,300)
                                        ----------- ----------- ----------
                                                  -           -     (9,321)
                                        ----------- ----------- ----------
EBITDA - adjusted for comparability     $   131,853 $   146,213 $  170,052
                                        =========== =========== ==========
EBITDA per share (diluted) - adjusted
 for comparability                      $      3.32 $      3.64 $     4.27
                                        =========== =========== ==========

AFFO
AFFO                                    $   122,876 $   124,450 $  133,266
                                        =========== =========== ==========
AFFO per share (diluted)                $      3.09 $      3.09 $     3.34
                                        =========== =========== ==========
Items that affect comparability:
  SEC Settlement (a)                              -           -     21,012
  CPA®:16 - Global performance
   adjustment, net (b)                            -           -    (42,300)
                                        ----------- ----------- ----------
                                                  -           -    (21,288)
                                        ----------- ----------- ----------
AFFO - adjusted for comparability       $   122,876 $   124,450 $  111,978
                                        =========== =========== ==========
AFFO per share (diluted) - adjusted for
 comparability                          $      3.09 $      3.09 $     2.81
                                        =========== =========== ==========

Diluted weighted average shares
 outstanding                             39,712,735  40,221,112 39,868,208
                                        =========== =========== ==========


Non-GAAP Financial Disclosure

The above table presents each of net income, EBITDA and AFFO adjusted for
items that affect comparability. As further described in the following
tables, we believe that these adjusted supplemental measures are useful to
investors and analysts for comparing our current financial performance with
prior periods, although they do not represent net income or cash flow from
operating activities that is computed in accordance with GAAP. Accordingly,
net income, EBITDA and AFFO adjusted for items that affect comparability
should not be considered an alternative for net income or cash flow from
operating activities as an indicator of our financial performance. Net
income, EBITDA and AFFO adjusted for items that affect comparability may
not be comparable to similarly titled measures of other companies. A
description of EBITDA and AFFO and reconciliations to the most directly
comparable GAAP measures are provided on the respective pages of this
earnings release.

(a) Includes a $30.0 million reserve taken in the fourth quarter of 2007
    in connection with an SEC settlement.

(b) CPA®:16 - Global performance adjustment, net represents the net of
    tax impact of previously deferred asset management revenue, structuring
    revenue and interest income less deferred compensation costs recognized
    during the second quarter of 2007 following the achievement of
    CPA®:16 - Global's performance criterion. Adjustments to EBITDA and
    AFFO eliminate the associated provision for income taxes and provision
    for deferred income taxes, respectively.

(c) During the third quarter of 2007, we determined that a longer schedule
    of depreciation/amortization of assets in certain of our equity method
    investment holdings should appropriately be applied to reflect the
    lives of the underlying assets rather than the expected holding period
    of these investments. We concluded that these adjustments were not
    material to any prior periods' consolidated financial statements. We
    also concluded that the cumulative adjustment was not material to the
    year ended December 31, 2007. As such, the cumulative effect was
    recorded in the consolidated statements of income as a one-time
    cumulative out-of-period adjustment in the third quarter of 2007. The
    effect of this adjustment for the year ended December 31, 2007 was to
    increase net income by approximately $3.5 million.





                          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,
                                        ----------------------------------
                                           2009        2008        2007
                                        ----------- ----------- ----------
Investment Management
Net income from investment management
 attributable to W. P. Carey members    $    11,616 $     9,603 $  (12,366)
Adjustments:
  Provision for income taxes                  6,227       2,246      2,473
  Depreciation and amortization               1,049       1,230      5,987
                                        ----------- ----------- ----------
EBITDA - investment management          $    18,892 $    13,079 $   (3,906)
                                        =========== =========== ==========
EBITDA per share (diluted)              $      0.47 $      0.32 $    (0.10)
                                        =========== =========== ==========

Real Estate Ownership
Net income from real estate ownership
 attributable to W. P. Carey members    $    11,370 $    12,297 $   18,379
Adjustments:
  Interest expense                            3,589       4,279      4,995
  Provision for income taxes                    628         870        453
  Depreciation and amortization               4,227       4,738      5,240
  Reconciling items attributable to
   discontinued operations                    1,069       1,054      2,056
                                        ----------- ----------- ----------
EBITDA - real estate ownership          $    20,883 $    23,238 $   31,123
                                        =========== =========== ==========
EBITDA per share (diluted)              $      0.52 $      0.58 $     0.78
                                        =========== =========== ==========

Total Company
EBITDA                                  $    39,775 $    36,317 $   27,217
                                        =========== =========== ==========
EBITDA per share (diluted)              $      0.99 $      0.90 $     0.68
                                        =========== =========== ==========
Diluted weighted average shares
 outstanding                             40,390,393  40,466,930 39,815,933
                                        =========== =========== ==========



                                             Years ended December 31,
                                        -----------------------------------
                                           2009        2008        2007
                                        ----------- ----------- -----------
Investment Management
Net income from investment management
 attributable to W. P. Carey members    $    29,334 $    34,858 $    36,808
Adjustments:
 Provision for income taxes                  21,038      22,432      50,158
 Depreciation and amortization                3,807       4,515       4,179
                                        ----------- ----------- -----------
EBITDA - investment management          $    54,179 $    61,805 $    91,145
                                        =========== =========== ===========
EBITDA per share (diluted)              $      1.36 $      1.54 $      2.29
                                        =========== =========== ===========

Real Estate Ownership
Net income from real estate ownership
 attributable to W. P. Carey members    $    39,689 $    43,189 $    42,444
Adjustments:
  Interest expense                           15,189      18,858      20,266
  Provision for income taxes                  1,755       1,089       1,581
  Depreciation and amortization              19,817      19,913      20,068
  Reconciling items attributable to
   discontinued operations                    1,224       1,359       3,869
                                        ----------- ----------- -----------
EBITDA - real estate ownership          $    77,674 $    84,408 $    88,228
                                        =========== =========== ===========
EBITDA per share (diluted)              $      1.96 $      2.10 $      2.21
                                        =========== =========== ===========

Total Company
EBITDA                                  $   131,853 $   146,213 $   179,373
                                        =========== =========== ===========
EBITDA per share (diluted)              $      3.32 $      3.64 $      4.50
                                        =========== =========== ===========
Diluted weighted average shares
 outstanding                             39,712,735  40,221,112  39,868,208
                                        =========== =========== ===========


Non-GAAP Financial Disclosure

EBITDA as disclosed represents earnings before interest, taxes,
depreciation and amortization. We believe that EBITDA is a useful
supplemental measure to investors and analysts for assessing the
performance of our business segments, although it does not represent net
income that is computed in accordance with GAAP, because it removes the
impact of our capital structure and asset base from our operating results
and because it is helpful when comparing our operating performance to that
of companies in our industry without regard to such items, which can vary
substantially from company to company. Accordingly, EBITDA should not be
considered as an alternative for net income as an indicator of our
financial performance. EBITDA may not be comparable to similarly titled
measures of other companies. Therefore, we use EBITDA as one measure of
our operating performance when we formulate corporate goals, evaluate the
effectiveness of our strategies, and determine executive compensation.





                          W. P. CAREY & CO. LLC
Reconciliation of Net Income to Funds From Operations - as adjusted (AFFO)
                                (Unaudited)
            (in thousands, except share and per share amounts)


                                          Three months ended December 31,
                                        ----------------------------------
                                           2009        2008        2007
                                        ----------  ----------  ----------
Investment Management
Net income from investment management
 attributable to W. P. Carey members    $   11,616  $    9,603  $  (12,366)
Amortization, deferred taxes and other
 non-cash charges                           (3,370)     (1,283)     (2,466)
AFFO from equity investments                 8,556       3,095         551
                                        ----------  ----------  ----------
AFFO - investment management            $   16,802  $   11,415  $  (14,281)
                                        ==========  ==========  ==========
AFFO per share (diluted)                $     0.41  $     0.28  $    (0.36)
                                        ==========  ==========  ==========

Real Estate Ownership
Net income from real estate ownership
 attributable to W. P. Carey members    $   11,370  $   12,297  $   18,379
Gain on sale of direct financing lease           -           -           -
Gain on sale of real estate, net            (7,358)          -     (14,865)
Gain on extinguishment of debt, net (a)          -           -           -
Depreciation, amortization and other
 non-cash charges                            4,976       7,594       4,929
Straight-line and other rent
 adjustments                                   465         172         964
Impairment charges                           5,754         473       1,017
AFFO from equity investments                 1,818       2,039       1,662
Noncontrolling interests' share of AFFO       (154)       (163)      5,106
                                        ----------  ----------  ----------
AFFO - real estate ownership            $   16,871  $   22,412  $   17,192
                                        ==========  ==========  ==========
AFFO per share (diluted)                $     0.42  $     0.56  $     0.43
                                        ==========  ==========  ==========

Total Company
AFFO                                    $   33,673  $   33,827  $    2,911
                                        ==========  ==========  ==========
AFFO per share (diluted)                $     0.83  $     0.84  $     0.07
                                        ==========  ==========  ==========
Diluted weighted average shares
 outstanding                            40,390,393  40,466,930  39,815,933
                                        ==========  ==========  ==========



                                             Years ended December 31,
                                        ----------------------------------
                                           2009        2008        2007
                                        ----------  ----------  ----------
Investment Management
Net income from investment management
 attributable to W. P. Carey members    $   29,334  $   34,858  $   36,808
Amortization, deferred taxes and other
 non-cash charges                            1,796       2,494      30,194
AFFO from equity investments                24,420      11,767       2,167
                                        ----------  ----------  ----------
AFFO - investment management            $   55,550  $   49,119  $   69,169
                                        ==========  ==========  ==========
AFFO per share (diluted)                $     1.39  $     1.22  $     1.73
                                        ==========  ==========  ==========

Real Estate Ownership
Net income from real estate ownership
 attributable to W. P. Carey members    $   39,689  $   43,189  $   42,444
Gain on sale of direct financing lease           -      (1,103)          -
Gain on sale of real estate, net            (7,701)          -     (15,827)
Gain on extinguishment of debt, net (a)     (2,796)          -           -
Depreciation, amortization and other
 non-cash charges                           19,513      23,308      20,272
Straight-line and other rent
 adjustments                                 1,273         887       3,080
Impairment charges                          10,424       1,011       3,334
AFFO from equity investments                 7,505       8,718       6,312
Noncontrolling interests' share of AFFO       (581)       (679)      4,482
                                        ----------  ----------  ----------
AFFO - real estate ownership            $   67,326  $   75,331  $   64,097
                                        ==========  ==========  ==========
AFFO per share (diluted)                $     1.70  $     1.87  $     1.61
                                        ==========  ==========  ==========

Total Company
AFFO                                    $  122,876  $  124,450  $  133,266
                                        ==========  ==========  ==========
AFFO per share (diluted)                $     3.09  $     3.09  $     3.34
                                        ==========  ==========  ==========
Diluted weighted average shares
 outstanding                            39,712,735  40,221,112  39,868,208
                                        ==========  ==========  ==========


Non-GAAP Financial Disclosure

Funds from operations (FFO) is a non-GAAP financial measure that is
commonly used by investors and analysts 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 or funds from
operations - as adjusted (AFFO) 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 and
should be used in conjunction with GAAP net income. FFO or AFFO disclosed
by other REITs may not be comparable to our AFFO 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 AFFO 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, and we therefore use AFFO as one measure of our operating
performance when we formulate corporate goals, evaluate the effectiveness
of our strategies, and determine executive compensation. As a result, we
believe that AFFO is a useful supplemental measure for investors to
consider because it will help them to better understand and measure the
performance of our business over time without the potentially distorting
impact of these short-term fluctuations.

(a) In January 2009, Carey Storage repaid, in full, the $35.0 million
    outstanding balance on its secured credit facility for $28.0 million
    and recognized a gain of $7.0 million on the repayment of this debt
    at a discount, inclusive of the 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)


                                             Years ended December 31,
                                        ----------------------------------
                                           2009        2008        2007
                                        ----------  ----------  ----------
Cash flow from operating activities     $   74,544  $   63,247  $   47,471
Adjustments:
Distributions received from equity
 investments in real estate in excess
 of equity income (a)                       18,503      10,868       6,769
Contributions paid to noncontrolling
 interests, net (b)                           (568)     (3,025)          -
Changes in working capital (c)               1,401       9,574        (132)
Settlement payment (d)                           -      21,012           -
CPA®:16 - Global performance
 adjustment, net (e)                             -     (12,291)      9,425
CPA®:12/14 Merger -- payment of
 taxes (c)                                       -           -      20,708
                                        ----------  ----------  ----------
Adjusted cash flow from operating
 activities                             $   93,880  $   89,385  $   84,241
                                        ==========  ==========  ==========
Adjusted cash flow per share (diluted)  $     2.36  $     2.22  $     2.11
                                        ==========  ==========  ==========

Distributions declared per share        $    1.996  $    1.955  $    1.878
                                        ==========  ==========  ==========
Payout ratio (distributions per
 share/adjusted cash flow per share)            85%         88%         89%
                                        ==========  ==========  ==========
Diluted weighted average shares
 outstanding                            39,712,735  40,221,112  39,868,208
                                        ==========  ==========  ==========


Non-GAAP Financial Disclosure

Adjusted cash flow from operating activities refers to our cash provided
by operating activities, as determined in accordance with GAAP, adjusted
primarily to reflect timing differences between the period an expense is
incurred and paid, to add cash distributions that we receive from our
investments in unconsolidated real estate joint ventures in excess of our
equity investment in the joint ventures, and to subtract cash distributions
that we make to our noncontrolling partners in real estate joint ventures
that we consolidate. We hold a number of interests in real estate joint
ventures, and we believe that adjusting our GAAP cash provided by operating
activities to reflect these actual cash receipts and cash payments may give
investors a more accurate picture of our actual cash flow than GAAP cash
provided by operating activities alone and that it is a useful supplemental
measure for investors to consider. We also believe that adjusted cash flow
from operating activities is a useful supplemental measure for assessing
the cash flow generated from our core operations, and we use this measure
when evaluating distributions to shareholders and as one measure of our
operating performance when we determine executive compensation. Adjusted
cash flow from operating activities should not be considered as an
alternative for cash provided by 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) In March 2008, we entered into a settlement with the SEC with respect
    to all matters relating to a previously disclosed investigation. In
    connection with this settlement, we paid $30.0 million in the first
    quarter of 2008 and recognized an offsetting $9.0 million tax benefit
    in the same period.

(e) 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.

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