SOURCE: W. P. Carey & Co. LLC

W. P. Carey & Co. LLC

August 06, 2009 09:15 ET

W. P. Carey Announces Second Quarter Financial Results

NEW YORK, NY--(Marketwire - August 6, 2009) - Investment firm W. P. Carey & Co. LLC (NYSE: WPC) today reported financial results for the second quarter ended June 30, 2009.

QUARTERLY AND SIX-MONTH RESULTS

--  Total revenues net of reimbursed expenses for the second quarter of
    2009 were $44.3 million, compared to $47.3 million for the second quarter
    of 2008.  Total revenues net of reimbursed expenses for the six months
    ended June 30, 2009 were $96.5 million, compared to $94.2 million for the
    comparable period in 2008.  Reimbursed expenses are excluded from total
    revenues because they have no impact on net income.
--  Net income for the second quarter of 2009 was $15.0 million, compared
    to $19.8 million for the same period in 2008.  For the six months ended
    June 30, 2009, net income was $32.7 million, compared to $36.9 million for
    the comparable period in 2008.
--  Cash flows from operating activities for six months ended June 30,
    2009 increased to $34.7 million from $27.2 million for the prior year
    period.
--  Adjusted cash flow from operating activities for the six months ended
    June 30, 2009 was $50.0 million, compared to $53.8 million for the
    comparable period in 2008.
--  Funds from operations (FFO) for the second quarter of 2009 were $30.1
    million or $0.75 per diluted share, compared to $35.6 million or $0.88 per
    diluted share for the comparable period in 2008.  FFO for the six months
    ended June 30, 2009 was $59.0 million or $1.48 per diluted share, compared
    to $57.1 million or $1.42 per diluted share for the comparable period in
    2008.
--  For the six months ended June 30, 2009, we incurred impairment charges
    of $2.3 million and our CPA® REITs incurred impairment charges
    aggregating approximately $54.6 million, which reduced the amount of income
    we recognize from these equity investments by approximately $2.8 million.
    We received approximately $6.8 million in cash distributions from our
    equity ownership in the CPA® REITs for the same period.
--  Further information concerning FFO and adjusted cash flow from
    operating activities, non-GAAP supplemental performance metrics, is
    presented in the accompanying tables.
    

INVESTMENT, FUNDRAISING AND FINANCING ACTIVITY

--  Investment volume, for our own portfolio and on behalf of the CPA®
    REITs, for the six months ended June 30, 2009 was $273.8 million, an
    increase over the prior year as a result of two significant transactions --
    The New York Times Company and Kronos Foods -- closing in the first
    quarter.
--  In July, on behalf of our CPA® REITs, we structured a $93.6 million
    sale-leaseback and our first Hungarian transaction with UK retailer, Tesco
    plc.
--  We continue to raise investor capital through our latest non-traded
    REIT offering, CPA®:17 - Global, so that we may take advantage of
    attractive investment opportunities that we believe are afforded by the
    current market environment.  Through July 31, 2009, CPA®:17 - Global has
    raised more than $550 million of its up-to $2 billion offering.  For the
    second quarter of 2009, we raised $100.3 million, compared to $71.5 million
    in the first quarter of this year.
--  Since the beginning of the credit crunch in September 2008, W. P.
    Carey and our CPA® REITs have completed refinancings of maturing debt
    totaling more than $120 million secured by seven properties, of which $44.2
    million closed in the first half of 2009.
    

ASSETS UNDER MANAGEMENT

--  W. P. Carey is the advisor to the CPA® REITs, which had real estate
    assets of $7.9 billion and total assets of $8.2 billion as of June 30,
    2009.
--  As of June 30, 2009, the occupancy rate of our 17 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
    98%.
    

DISTRIBUTIONS

--  The Board of Directors raised the quarterly cash distribution to
    $0.498 per share for the second quarter of 2009.  The distribution was paid
    on July 15, 2009 to shareholders of record as of June 30, 2009.  This was
    our 33rd consecutive quarterly dividend increase.
--  Over the past 36 years, W. P. Carey and the CPA® programs have paid
    approximately $2.9 billion to investors over 800 cash distributions.
    

"While the second quarter was largely uneventful from a financial results standpoint, we believe we are very well poised to take advantage of opportunities in the sale-leaseback market," said Gordon F. DuGan, President and Chief Executive Officer. "Specifically, we have been quite pleased at the access to capital that we have in terms of increased equity fundraising and our continued access to mortgage financing. Our existing funds continue to perform as expected, although we will remain cautious about corporate defaults until we see a meaningful economic recovery. Lastly, having access to capital and significantly fewer legacy challenges is allowing us to play offense in the sale-leaseback market at a time when others have to take a more defensive posture."

CONFERENCE CALL & WEBCAST

Please call at least 10 minutes prior to call to register

Time: Thursday, August 6, 2009 at 11:00 AM (ET)

Call-in Number: 877-591-4953
(International) +1-719-325-4898

Passcode: 3545166

Webcast: www.wpcarey.com/earnings

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

Replay Number: 888-203-1112
(International) +1-719-457-0820

Replay Passcode: 3545166
Replay Available until August 20, 2009 at midnight ET.

W. P. Carey & Co. LLC

W. P. Carey & Co. LLC is an investment firm that provides long-term sale-leaseback and build-to-suit financing for companies worldwide and manages a global investment portfolio approaching $10 billion. Publicly traded on the New York Stock Exchange (WPC), W. P. Carey and its CPA® series of income-generating, non-traded REITs help companies and private equity firms release capital tied up in real estate assets. The W. P. Carey Group's investments are highly diversified, comprising contractual agreements with approximately 300 long-term corporate obligors spanning 28 industries and 15 countries. http://www.wpcarey.com

Individuals interested in receiving future updates on W. P. Carey via e-mail can register at www.wpcarey.com/alerts.

This press release contains forward-looking statements within the meaning of the Federal securities laws. A number of factors could cause the Company's actual results, performance or achievement to differ materially from those anticipated. Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for office and industrial properties; interest rate levels; the availability of financing; and other risks associated with the acquisition and ownership of properties, including risks that the tenants will not pay rent, or that costs may be greater than anticipated. For further information on factors that could impact the Company, reference is made to the Company's filings with the Securities and Exchange Commission.


                          W. P. CAREY & CO. LLC
              Consolidated Statements of Income (Unaudited)
            (in thousands, except share and per share amounts)

                              Three months ended      Six months ended
                                   June 30,               June 30,
                            ----------------------  ----------------------
                               2009        2008        2009        2008
                            ----------  ----------  ----------  ----------
Revenues
  Asset management revenue  $   19,227  $   20,039  $   38,335  $   40,165
  Structuring revenue              365       3,169      10,774       6,585
  Wholesaling revenue            1,597       1,488       2,690       2,628
  Reimbursed costs from
   affiliates                   11,115      11,080      20,111      21,446
  Lease revenues                18,473      19,296      36,828      38,371
  Other real estate income       4,649       3,305       7,904       6,427
                            ----------  ----------  ----------  ----------
                                55,426      58,377     116,642     115,622
                            ----------  ----------  ----------  ----------
Operating Expenses
  General and administrative   (14,310)    (15,816)    (33,409)    (31,229)
  Reimbursable costs           (11,115)    (11,080)    (20,111)    (21,446)
  Depreciation and
   amortization                 (7,120)     (6,178)    (12,749)    (12,167)
  Property expenses             (2,180)     (1,245)     (4,026)     (3,532)
  Impairment charges            (1,700)          -      (1,700)          -
  Other real estate expenses    (1,707)     (2,146)     (3,838)     (4,215)
                            ----------  ----------  ----------  ----------
                               (38,132)    (36,465)    (75,833)    (72,589)
                            ----------  ----------  ----------  ----------
Other Income and Expenses
  Other interest income            401         679         808       1,440
  Income from equity
   investments in real
   estate and CPA(R) REITs       4,875       3,934       6,262       8,645
  Other income and expenses        127       1,848       3,281       4,659
  Interest expense              (3,923)     (4,532)     (8,252)     (9,575)
                            ----------  ----------  ----------  ----------
                                 1,480       1,929       2,099       5,169
                            ----------  ----------  ----------  ----------
  Income from continuing
   operations before income
   taxes                        18,774      23,841      42,908      48,202
  Provision for income taxes    (3,720)     (7,422)     (9,920)    (14,566)
                            ----------  ----------  ----------  ----------
  Income from continuing
   operations                   15,054      16,419      32,988      33,636
                            ----------  ----------  ----------  ----------
Discontinued Operations
  (Loss) income from
   operations of
   discontinued properties         (75)      3,733        (100)      3,706
  Gain on sale of real
   estate                          478           -         343           -
  Impairment charge               (580)          -        (580)          -
                            ----------  ----------  ----------  ----------
  (Loss) income from
   discontinued operations        (177)      3,733        (337)      3,706
                            ----------  ----------  ----------  ----------
Net Income                      14,877      20,152      32,651      37,342
  Add: Net loss attributable
   to noncontrolling
   interests                       203         168         373         340
  Less: Net income
   attributable to
   redeemable noncontrolling
   interests                      (103)       (472)       (338)       (733)
                            ----------  ----------  ----------  ----------
Net Income Attributable to
 W. P. Carey Members        $   14,977  $   19,848  $   32,686  $   36,949
                            ==========  ==========  ==========  ==========
Basic Earnings Per Share
  Income from continuing
   operations attributable
   to W. P. Carey members   $     0.37  $     0.41  $     0.83  $     0.85
  (Loss) income from
   discontinued operations
   attributable to W. P.
   Carey members                     -        0.10       (0.01)       0.09
                            ----------  ----------  ----------  ----------
  Net income attributable
   to W. P. Carey members   $     0.37  $     0.51  $     0.82  $     0.94
                            ==========  ==========  ==========  ==========
Diluted Earnings Per Share
  Income from continuing
   operations attributable
   to W. P. Carey members   $     0.37  $     0.41  $     0.82  $     0.83
  (Loss) income from
   discontinued operations
   attributable to W. P.
   Carey members                     -        0.09       (0.01)       0.09
                            ----------  ----------  ----------  ----------
  Net income attributable
  to W. P. Carey members    $     0.37  $     0.50  $     0.81  $     0.92
                            ==========  ==========  ==========  ==========
Weighted Average Shares
 Outstanding
  Basic                     39,350,684  39,204,221  39,067,391  39,039,617
                            ==========  ==========  ==========  ==========
  Diluted                   40,065,495  40,256,658  39,780,708  40,271,185
                            ==========  ==========  ==========  ==========
Amounts Attributable to W.
 P. Carey Members
  Income from continuing
   operations, net of tax   $   15,154  $   16,115  $   33,023  $   33,243
  (Loss) income from
   discontinued operations,
   net of tax                     (177)      3,733        (337)      3,706
                            ----------  ----------  ----------  ----------
  Net income                $   14,977  $   19,848  $   32,686  $   36,949
                            ==========  ==========  ==========  ==========
Distributions Declared Per
 Share                      $    0.498  $    0.487  $    0.994  $    0.969
                            ==========  ==========  ==========  ==========








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

                                                         Six months ended
                                                             June 30,
                                                        ------------------
                                                          2009      2008
                                                        --------  --------
Cash Flows -- Operating Activities
Net income                                              $ 32,651  $ 37,342
Adjustments to reconcile net income to net cash
 provided by operating activities:
  Depreciation and amortization including intangible
   assets and deferred financing costs                    12,757    13,506
  Income from equity investments in real estate and
   CPA(R) REITs in excess of distributions received       (3,157)   (1,924)
  Straight-line rent adjustments                             967     1,252
  Management income received in shares of affiliates     (15,414)  (20,053)
  Gain on sale of real estate                               (343)        -
  Gain on extinguishment of debt                          (6,991)        -
  Allocation of income to profit sharing interest          3,875         -
  Impairment charges                                       2,280         -
  Unrealized gain on foreign currency transactions,
   warrants and securities                                   (39)   (1,203)
  Realized gain on foreign currency transactions and
   other                                                    (126)   (1,565)
  Stock-based compensation expense                         5,260     3,922
  Decrease in deferred acquisition revenue received       22,877    46,695
  Increase in structuring revenue receivable              (5,416)   (3,538)
  Decrease in income taxes, net                           (8,454)   (3,963)
  Decrease in settlement provision                             -   (29,979)
  Net changes in other operating assets and liabilities   (6,044)  (13,273)
                                                        --------  --------
Net cash provided by operating activities                 34,683    27,219
                                                        --------  --------
Cash Flows -- Investing Activities
  Distributions received from equity investments in real
   estate and CPA(R) REITs in excess of equity income      7,606     3,425
  Capital contributions to equity investments                  -      (837)
  Purchases of real estate and equity investments in
   real estate                                           (39,677)     (184)
  Capital expenditures                                    (6,929)   (6,455)
  VAT refunded on purchase of real estate                      -     3,189
  Proceeds from sale of real estate                        3,835         -
  Proceeds from transfer of profit sharing interest       21,928         -
  Funds released from escrow in connection with the sale
   of property                                                 -       636
  Payment of deferred acquisition revenue to affiliate         -      (120)
                                                        --------  --------
Net cash used in investing activities                    (13,237)     (346)
                                                        --------  --------
Cash Flows -- Financing Activities
  Distributions paid                                     (39,060)  (48,668)
  Contributions from noncontrolling interests              1,583     1,320
  Distributions to noncontrolling interests               (3,474)   (1,329)
  Distributions to profit sharing interest                (3,434)        -
  Scheduled payments of mortgage principal                (5,241)   (4,698)
  Proceeds from mortgages and credit facilities          127,500   101,937
  Prepayments of mortgage principal and credit
   facilities                                            (83,936)  (73,729)
  Proceeds from loan from affiliates                       1,624         -
  Repayment of loan from affiliates                            -    (7,569)
  Payment of financing costs, net of deposits refunded      (806)     (370)
  Proceeds from issuance of shares                           874    12,743
  Windfall tax benefits associated with stock-based
   compensation awards                                       242       608
  Repurchase and retirement of shares                    (10,686)   (5,134)
                                                        --------  --------
Net cash used in financing activities                    (14,814)  (24,889)
                                                        --------  --------
Change in Cash and Cash Equivalents During the Period
    Effect of exchange rate changes on cash                   38       298
                                                        --------  --------
    Net increase in cash and cash equivalents              6,670     2,282
  Cash and cash equivalents, beginning of period          16,799    12,137
                                                        --------  --------
  Cash and cash equivalents, end of period              $ 23,469  $ 14,419
                                                        ========  ========







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

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

                                    Three months ended   Six months ended
                                         June 30,            June 30,
                                    ------------------- ------------------
                                      2009      2008      2009      2008
                                    --------- --------- --------  --------
EBITDA
Investment management               $  10,430 $  15,774 $ 23,498  $ 30,519
Real estate ownership                  19,365    22,307   40,257    42,941
                                    --------- --------- --------  --------
Total                               $  29,795 $  38,081 $ 63,755  $ 73,460
                                    ========= ========= ========  ========

FFO
Investment management               $  11,627 $  14,664 $ 25,960  $ 20,125
Real estate ownership                  18,486    20,887   33,010    36,956
                                    --------- --------- --------  --------
Total                               $  30,113 $  35,551 $ 58,970  $ 57,081
                                    ========= ========= ========  ========

EBITDA Per Share (Diluted)
Investment management               $    0.26 $    0.39 $   0.59  $   0.76
Real estate ownership                    0.48      0.56     1.01      1.06
                                    --------- --------- --------  --------
Total                               $    0.74 $    0.95 $   1.60  $   1.82
                                    ========= ========= ========  ========

FFO Per Share (Diluted)
Investment management               $    0.29 $    0.36 $   0.65  $   0.50
Real estate ownership                    0.46      0.52     0.83      0.92
                                    --------- --------- --------  --------
Total                               $    0.75 $    0.88 $   1.48  $   1.42
                                    ========= ========= ========  ========

Adjusted Cash Flow From Operating
 Activities
Adjusted cash flow                                      $ 50,019  $ 53,789
                                                        ========  ========
Adjusted cash flow per share
 (diluted)                                              $   1.26  $   1.34
                                                        ========  ========

Distributions declared per share                        $  0.994  $  0.969
                                                        ========  ========
Payout ratio (distributions per
 share/adjusted cash flow per
 share)                                                       79%       72%
                                                        ========  ========




                          W. P. CAREY & CO. LLC
            Reconciliation of Net Income to EBITDA (Unaudited)
            (in thousands, except share and per share amounts)

                              Three months ended      Six months ended
                                  June 30,               June 30,
                            ----------------------- -----------------------
                               2009        2008        2009        2008
                            ----------- ----------  ----------- -----------
Investment Management
Net income from investment
 management attributable to
 W. P. Carey members        $     5,954 $    7,123  $    12,659 $    14,054
Adjustments:
 Provision for income taxes       3,440      7,556        9,205      14,340
 Depreciation and
  amortization                    1,036      1,095        1,634       2,125
                            ----------- ----------  ----------- -----------
EBITDA - investment
 management                 $    10,430 $   15,774  $    23,498 $    30,519
                            =========== ==========  =========== ===========
EBITDA per share (diluted)  $      0.26 $     0.39  $      0.59 $      0.76
                            =========== ==========  =========== ===========

Real Estate Ownership
Net income from real estate
 ownership attributable to
 W. P. Carey members        $     9,023 $   12,725  $    20,027 $    22,895
Adjustments:
  Interest expense                3,923      4,532        8,252       9,575
  Provision for income taxes        280       (134)         715         226
  Depreciation and
   amortization                   6,084      5,083       11,115      10,042

  Reconciling items
   attributable to
   discontinued operations           55        101          148         203
                            ----------- ----------  ----------- -----------
EBITDA - real estate
 ownership                  $    19,365 $   22,307  $    40,257 $    42,941
                            =========== ==========  =========== ===========
EBITDA per share (diluted)  $      0.48 $     0.56  $      1.01 $      1.06
                            =========== ==========  =========== ===========

Total Company
EBITDA                      $    29,795 $   38,081  $    63,755 $    73,460
                            =========== ==========  =========== ===========
EBITDA per share (diluted)  $      0.74 $     0.95  $      1.60 $      1.82
                            =========== ==========  =========== ===========
Diluted weighted average
 shares outstanding          40,065,495 40,256,658   39,780,708  40,271,185
                            =========== ==========  =========== ===========


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






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

                              Three months ended     Six months ended
                                   June 30,              June 30,
                            ----------------------  ----------------------
                               2009        2008        2009        2008
                            ----------  ----------  ----------  ----------
Investment Management
Net income from investment
 management attributable
 to  W. P. Carey members    $    5,954  $    7,123  $   12,659  $   14,054
Amortization, deferred
 taxes and other non-cash
 charges                         2,607       4,041       3,919       1,487
FFO from equity investments      3,066       3,500       9,382       4,584
                            ----------  ----------  ----------  ----------
FFO -- investment
 management                 $   11,627  $   14,664  $   25,960  $   20,125
                            ==========  ==========  ==========  ==========
FFO per share (diluted)     $     0.29  $     0.36  $     0.65  $     0.50
                            ==========  ==========  ==========  ==========

Real Estate Ownership
Net income from real estate
 ownership attributable to
 W. P. Carey members        $    9,023  $   12,725  $   20,027  $   22,895
Loss on sale of real
 estate, net                      (478)          -        (343)          -
Gain on extinguishment of
 debt, net (a)                       -           -      (2,796)          -
Depreciation, amortization
 and other non-cash charges      5,174       5,389      10,348       8,950
Straight-line and other
 rent adjustments                  232         659         412       1,328
Impairment charges               2,280           -       2,280           -
FFO from equity investments      2,411       2,287       3,413       4,128
Noncontrolling interests'
 share of FFO                     (156)       (173)       (331)       (345)
                            ----------  ----------  ----------  ----------
FFO -- real estate
 ownership                  $   18,486  $   20,887  $   33,010  $   36,956
                            ==========  ==========  ==========  ==========
FFO per share (diluted)     $     0.46  $     0.52  $     0.83  $     0.92
                            ==========  ==========  ==========  ==========

Total Company
FFO                         $   30,113  $   35,551  $   58,970  $   57,081
                            ==========  ==========  ==========  ==========
FFO per share (diluted)     $     0.75  $     0.88  $     1.48  $     1.42
                            ==========  ==========  ==========  ==========
Diluted weighted average
 shares outstanding         40,065,495  40,256,658  39,780,708  40,271,185
                            ==========  ==========  ==========  ==========


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

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

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






                          W. P. CAREY & CO. LLC
         Adjusted Cash Flow from Operating Activities (Unaudited)
            (in thousands, except share and per share amounts)


                                                      Six months ended
                                                          June 30,
                                                    ----------------------
                                                       2009        2008
                                                    ----------  ----------
Cash flow from operating activities -- as reported  $   34,683  $   27,219
Adjustments:
Distributions received from equity investments in
 real estate in excess of equity income (a)              9,040       3,223
Contributions received from noncontrolling
 interests, net (b)                                        252           -
Changes in working capital (c)                           6,044      14,626
CPA(R):16 - Global performance adjustment, net (d)           -     (12,291)
Settlement payment (e)                                       -      21,012
                                                    ----------  ----------
Adjusted cash flow from operating activities        $   50,019  $   53,789
                                                    ==========  ==========
Adjusted cash flow per share (diluted)              $     1.26  $     1.34
                                                    ==========  ==========

Distributions declared per share                    $    0.994  $    0.969
                                                    ==========  ==========
Payout ratio (distributions per share/adjusted cash
 flow per share)                                            79%         72%
                                                    ==========  ==========

Diluted weighted average shares outstanding         39,780,708  40,271,185
                                                    ==========  ==========

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

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

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

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

(d) Amounts deferred in lieu of CPA®:16 - Global achieving its
performance criterion, net of a 45% tax provision. In determining cash flow
generated from our core operations, we believe it is more appropriate to
normalize cash flow for the impact of CPA®:16 - Global achieving its
performance criterion, rather than recognizing the entire deferred amount
in the quarter in which the performance criterion was met (second quarter
of 2007), as this revenue was actually earned over a three year period.

(e) In March 2008, we entered into a settlement with the SEC with respect
to all matters relating to their investigation. As a result, we paid $30
million in the first quarter of 2008, and recognized an offsetting $9
million tax benefit in the same period.


Contact Information

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

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