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W. P. Carey Inc.
Celebrating its 40th anniversary, W. P. Carey Inc. is a publicly traded REIT (NYSE: WPC) that provides long-term sale-leaseback and build-to-suit financing for companies worldwide and owns and manages an investment portfolio totaling approximately $14.1 billion. The largest owner/manager of net lease assets, WPC's corporate finance-focused credit and real estate underwriting process is a constant that has been successfully leveraged across a wide variety of industries and property types. Our portfolio of long-term leases with creditworthy tenants has an established history of generating stable cash flows that have enabled the Company to deliver consistent and rising dividend income to investors for nearly four decades. www.wpcarey.com
This press release contains forward-looking statements within the meaning of the Federal securities laws. Examples of such forward-looking statements include, but are not limited to, the statements made by Mr. Bond. A number of factors could cause W. P. Carey'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 W. P. Carey, reference is made to W. P. Carey's filings with the Securities and Exchange Commission.
W. P. CAREY INC. CONSOLIDATED STATEMENTS OF INCOME (in thousands, except share and per share amounts) Years Ended December 31, ------------------------------------- 2012 2011 2010 ----------- ----------- -----------Revenues Lease revenues: Rental income $ 108,707 $ 52,360 $ 41,940 Interest income from direct financing leases 15,796 10,278 9,542 ----------- ----------- ----------- Total lease revenues 124,503 62,638 51,482 Asset management revenue from affiliates 56,666 66,808 76,246 Structuring revenue from affiliates 48,355 46,831 44,525 Incentive, termination and subordinated disposition revenue from affiliates - 52,515 - Wholesaling revenue 19,914 11,664 11,096 Reimbursed costs from affiliates 98,245 64,829 60,023 Other real estate income 26,312 22,499 17,273 ----------- ----------- ----------- 373,995 327,784 260,645 ----------- ----------- -----------Operating Expenses General and administrative (144,809) (93,733) (73,427) Reimbursable costs (98,245) (64,829) (60,023) Depreciation and amortization (48,790) (24,347) (18,309) Property expenses (13,041) (10,145) (8,009) Other real estate expenses (9,850) (10,784) (8,121) Impairment charges (10,467) 1,365 (1,140) ----------- ----------- ----------- (325,202) (202,473) (169,029) ----------- ----------- -----------Other Income and Expenses Other interest income 1,396 2,001 1,269 Income from equity investments in real estate and the Managed REITs 62,392 51,228 30,992 Gain on change in control of interests 20,744 27,859 781 Other income and (expenses) 3,402 4,578 627 Interest expense (50,573) (21,770) (15,636) ----------- ----------- ----------- 37,361 63,896 18,033 ----------- ----------- ----------- Income from continuing operations before income taxes 86,154 189,207 109,649 Provision for income taxes (6,783) (37,214) (25,814) ----------- ----------- ----------- Income from continuing operations 79,371 151,993 83,835 ----------- ----------- -----------Discontinued Operations Income from operations of discontinued properties 922 1,366 4,897 Gain on deconsolidation of a subsidiary - 1,008 - (Loss) gain on sale of real estate (5,019) (3,391) 460 Impairment charges (12,495) (11,838) (14,241) ----------- ----------- ----------- Loss from discontinued operations, net of tax (16,592) (12,855) (8,884) ----------- ----------- -----------Net Income 62,779 139,138 74,951 Net (income) loss attributable to noncontrolling interests (607) 1,864 314 Less: Net income attributable to redeemable noncontrolling interest (40) (1,923) (1,293) ----------- ----------- -----------Net Income Attributable to W. P. Carey $ 62,132 $ 139,079 $ 73,972 =========== =========== ===========Basic Earnings Per Share Income from continuing operations attributable to W. P. Carey $ 1.65 $ 3.76 $ 2.08 Loss from discontinued operations attributable to W. P. Carey (0.35) (0.32) (0.22) ----------- ----------- ----------- Net income attributable to W. P. Carey $ 1.30 $ 3.44 $ 1.86 =========== =========== ===========Diluted Earnings Per Share Income from continuing operations attributable to W. P. Carey $ 1.62 $ 3.74 $ 2.08 Loss from discontinued operations attributable to W. P. Carey (0.34) (0.32) (0.22) ----------- ----------- ----------- Net income attributable to W. P. Carey $ 1.28 $ 3.42 $ 1.86 =========== =========== ===========Weighted Average Shares Outstanding Basic 47,389,460 39,819,475 39,514,746 =========== =========== =========== Diluted 48,078,474 40,098,095 40,007,894 =========== =========== ===========Amounts Attributable to W. P. Carey Income from continuing operations, net of tax $ 78,724 $ 151,934 $ 82,856 Loss from discontinued operations, net of tax (16,592) (12,855) (8,884) ----------- ----------- ----------- Net income attributable to W. P. Carey $ 62,132 $ 139,079 $ 73,972 =========== =========== =========== W. P. CAREY INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Years Ended December 31, ------------------------------------- 2012 2011 2010 ----------- ----------- -----------Cash Flows -- Operating ActivitiesNet income $ 62,779 $ 139,138 $ 74,951Adjustments to net income: Depreciation and amortization, including intangible assets and deferred financing costs 55,114 29,616 24,443 (Income) loss from equity investments in real estate and the Managed REITs in excess of distributions received (17,271) 310 (4,920) Straight-line rent, financing lease adjustments and amortization of rent-related intangibles 2,831 (3,698) 286 Amortization of deferred revenue (9,436) (6,291) - Gain on deconsolidation of a subsidiary - (1,008) - Loss (gain) on sale of real estate 2,773 3,391 (460) Unrealized (gain) loss on foreign currency transactions and others (1,861) 138 300 Realized loss (gain) on foreign currency transactions and others 610 (965) (731) Allocation of loss to profit- sharing interest - - (781) Management and disposition income received in shares of Managed REITs (28,477) (73,936) (35,235) Gain on conversion of shares (15) (3,806) - Gain on change in control of interests (20,794) (27,859) - Impairment charges 22,962 10,473 15,381 Stock-based compensation expense 26,038 17,716 7,082 Deferred acquisition revenue received 21,059 21,546 21,204 Increase in structuring revenue receivable (20,304) (19,537) (20,237) (Decrease) increase in income taxes, net (18,277) 244 (1,288) Net changes in other operating assets and liabilities 2,912 (5,356) 6,422 ----------- ----------- -----------Net Cash Provided by Operating Activities 80,643 80,116 86,417 ----------- ----------- -----------Cash Flows -- Investing Activities Cash paid to stockholders of CPA®:15 in the Merger (152,356) - - Cash acquired in connection with the Merger 178,945 - - Distributions received from equity investments in real estate and the Managed REITs in excess of equity income 46,294 20,807 18,758 Capital contributions to equity investments (726) (2,297) - Purchase of interests in CPA®:16 -- Global - (121,315) - Purchases of real estate and equity investments in real estate (3,944) (24,315) (96,884) Value added taxes ("VAT") paid in connection with acquisition of real estate - - (4,222) VAT refunded in connection with acquisitions of real estate - 5,035 - Capital expenditures (6,204) (13,239) (5,135) Cash acquired on acquisition of subsidiaries - 57 - Proceeds from sale of real estate 73,204 12,516 14,591 Proceeds from sale of securities 372 818 - Funding of short-term loans to affiliates - (96,000) - Proceeds from repayment of short- term loans to affiliates - 96,000 - Funds placed in escrow (46,951) (6,735) (1,571) Funds released from escrow 37,832 2,584 36,620 ----------- ----------- -----------Net Cash Provided by (Used in) Investing Activities 126,466 (126,084) (37,843) ----------- ----------- -----------Cash Flows -- Financing Activities Distributions paid (113,867) (85,814) (92,591) Contributions from noncontrolling interests 3,291 3,223 14,261 Distributions paid to noncontrolling interests (7,314) (7,258) (4,360) Contributions from profit-sharing interest - - 3,694 Distributions to profit-sharing interest - - (693) Purchase of noncontrolling interest - (7,502) - Purchase of treasury stock from related party (Note ##RPF_FN) (45,270) - - Scheduled payments of mortgage principal (54,964) (25,327) (14,324) Proceeds from mortgage financing 23,750 45,491 56,841 Proceeds from senior credit facility 300,000 251,410 83,250 Repayments of senior credit facility (280,160) (160,000) (52,500) Payment of financing costs (2,557) (7,778) (1,204) Funds placed in escrow 1,970 - - Proceeds from issuance of shares 51,644 1,488 3,724 Windfall tax benefit associated with stock-based compensation awards 10,185 2,569 2,354 ----------- ----------- -----------Net Cash (Used in) Provided by Financing Activities (113,292) 10,502 (1,548) ----------- ----------- -----------Change in Cash and Cash Equivalents During the Year Effect of exchange rate changes on cash 790 70 (783) ----------- ----------- ----------- Net increase (decrease) in cash and cash equivalents 94,607 (35,396) 46,243 Cash and cash equivalents, beginning of year 29,297 64,693 18,450 ----------- ----------- ----------- Cash and cash equivalents, end of year $ 123,904 $ 29,297 $ 64,693 =========== =========== =========== W. P. CAREY INC. Financial Highlights (Unaudited) (in thousands, except per share amounts)
