W. P. Carey Announces Second Quarter Financial Results
(firmenpresse) - NEW YORK, NY -- (Marketwire) -- 08/07/12 -- Investment firm W. P. Carey & Co. LLC (NYSE: WPC) today reported financial results for the second quarter ended June 30, 2012.
QUARTERLY RESULTS
Funds from operations -- as adjusted (AFFO) for the second quarter of 2012 decreased compared to the second quarter of 2011, to $27.8 million or $0.68 per diluted share from $73.0 million or $1.82 per diluted share, respectively. AFFO for the six months ended June 30, 2012 was $67.9 million or $1.66 per diluted share, compared to $112.2 million or $2.79 per diluted share for the comparable period in 2011. The higher levels in the 2011 periods were due to revenues earned from the merger of two of our managed CPA® REITS in May 2011 as discussed further below.
Cash flow from operating activities for the six months ended June 30, 2012 was $11.8 million compared to $48.6 million for the prior year period, while adjusted cash flow from operating activities was $58.3 million for the six months ended June 30, 2012 compared to $55.9 million for the prior year period.
Total revenues net of reimbursed expenses for the second quarter of 2012 was $47.5 million compared to $99.7 million for the second quarter of 2011. Total revenues net of reimbursed expenses for the six months ended June 30, 2012 decreased to $98.2 million compared to $157.9 million for the prior year period. Reimbursed expenses are excluded from total revenues because they have no impact on net income.
Total adjusted revenue, or revenue on a pro-rata basis, for the six months ended June 30, 2012 increased to $157.1 million compared to $149.0 million for the prior year period.
Net Income for the second quarter of 2012 was $31.8 million, compared to $81.4 million for the same period in 2011. For the six months ended June 30, 2012, net income was $44.1 million compared to $104.8 million for the comparable period in 2011.
We received approximately $8.3 million in cash distributions from our equity ownership in the CPA® REITs for the quarter ended June 30, 2012.
Further information concerning AFFO, adjusted cash flow from operating activities and total adjusted revenue -- non-GAAP supplemental performance metrics -- is presented in the accompanying tables.
PROPOSED CONVERSION TO REIT AND MERGER WITH CPA®:15
On February 21, 2012, we announced that our Board of Directors had approved our conversion to a real estate investment trust ("REIT") and that our Board of Directors and the Board of Directors of our publicly held, non-traded REIT affiliate Corporate Property Associates 15 Incorporated ("CPA®:15") had unanimously approved a definitive merger agreement pursuant to which W. P. Carey and CPA®:15 will merge immediately following the REIT conversion.
On July 30, 2012 the Securities and Exchange Commission declared effective the Registration Statement on Form S-4 related to the proposed REIT conversion and merger. The conversion to a REIT is subject to the approval of W. P. Carey shareholders and the merger with CPA®:15 is subject to approval of both the shareholders of W. P. Carey and the stockholders of CPA®:15. The special meetings for each company are expected to take place on September 13, 2012. Additionally, as previously disclosed, on July 23, 2012 the Company entered into a voting agreement with the Estate of William Polk Carey and W. P. Carey & Co., Inc., a wholly-owned corporation of the Estate, pursuant to which they have agreed to vote their shares in favor of the approval of the REIT conversion and the merger with CPA®:15. These transactions are also subject to customary closing conditions.
If the proposed merger is approved and the other closing conditions are satisfied, we currently expect that the closing will occur in the third quarter of 2012, although there can be no assurance of such timing.
CPA®:17 - GLOBAL ACTIVITY
CPA®:17 - Global's follow-on offering was declared effective by the SEC in April 2011, which ended its initial public offering. We have raised more than $2.3 billion on behalf of CPA®:17 - Global since beginning fundraising in December 2007. The follow-on offering is for up to an additional $1 billion of CPA®:17 - Global's common stock.
Investment volume for CPA®:17 - Global in the second quarter of 2012 was approximately $70.5 million.
In the second quarter of 2012, we acquired five self storage facilities, comprising a total of approximately 385,000 square feet and located in Louisiana, Mississippi and Alabama. The total purchase price was approximately $17 million.
In addition, we provided approximately $18 million of build-to-suit financing to Sabre Industries, Inc. for the construction of an approximately 300,000 square foot industrial facility in Sioux City, Iowa. Upon completion, the facility will be leased on a long term, triple-net basis to Sabre Communications Corporation.
CAREY WATERMARK INVESTORS ACTIVITY
From the beginning of its initial public offering, Carey Watermark Investors ("CWI"), our lodging-focused non-traded REIT offering, has raised $84.0 million.
In the second quarter of 2012, CWI completed two investments: the Hampton Inn Boston/Braintree and the Hilton Garden Inn New Orleans French Quarter/CBD.
In July of 2012, CWI completed an investment in Lake Arrowhead Resort & Spa located in Lake Arrowhead, California.
ASSET MANAGEMENT ACTIVITY
As of June 30, 2012, W. P. Carey and our CPA® REITs secured approximately $220 million in debt financings. Approximately $77 million represented refinancing of maturing debt on thirteen properties; interest rates on these refinancings averaged more than 240 basis points below the rates on original financings. Approximately $143 million represented financing of new acquisitions or properties that had initially been acquired on an all equity basis.
ASSETS UNDER OWNERSHIP AND MANAGEMENT AS OF JUNE 30, 2012
W. P. Carey is the advisor to the CPA® REITs and CWI, which had aggregate real estate assets of $9.5 billion and total assets of $10.2 billion.
The occupancy rate of W. P. Carey's 11 million square foot owned portfolio was approximately 94%. In addition, for the 106 million square feet owned by the CPA® REITs, the average occupancy rate was approximately 99%.
The W. P. Carey Group's assets under ownership and management total approximately $12.7 billion.
DISTRIBUTIONS
The Board of Directors raised the quarterly cash distribution to $0.567 per share for the second quarter of 2012. The distribution -- our 45th consecutive quarterly increase -- was paid on July 16, 2012 to shareholders of record as of July 2, 2012.
Commenting on the Company's quarterly results, Trevor Bond, President and Chief Executive Officer, noted, "Last year's liquidation of CPA®:14 skewed our first half 2011 results such that a comparison with the same period in 2012 is less meaningful. For example, we recognized $52.5 million in termination and subordination disposition revenues in the second quarter of 2011 in connection with that liquidation, which took place via a merger of CPA®:14 and CPA®:16 - Global. This impacted AFFO by $1.01 per diluted share for the first half of 2011. Without that transaction, the core business would have generated AFFO of $1.78 per share during the first six months of 2011 as compared to $1.66 per share during the same period in 2012. Most of the remaining difference in AFFO is due to lower structuring revenues resulting from lower deal volume for the first half of this year. Deal volume has historically been a more widely variable source of revenues as compared to rental income and asset management fees. As a result of recent acquisitions, structuring revenues have decreased as a percentage of total revenues. Our proposed merger with CPA®:15 will further improve the stability of our revenues by shifting the revenue mix significantly in favor of rental income from owned assets. Dividend growth and coverage remains our paramount goal, and the increase in Adjusted Cash Flow from Operations year to date demonstrates our continued ability to cover the dividend notwithstanding periodic swings in investment volume."
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W. P. Carey & Co. LLC (NYSE: WPC) is an investment company that provides long term sale leaseback and build to suit financing for companies worldwide and manages a global investment portfolio of approximately $12.7 billion. Publicly traded on the New York Stock Exchange, W. P. Carey and its CPA® series of non-traded REITs help 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 284 long term corporate tenants spanning 28 industries and 18 countries.
Individuals interested in receiving future updates on W. P. Carey via e-mail can register at .
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.
COMPANY CONTACT:
Cheryl Sanclemente
W. P. Carey & Co. LLC
212-492-8995
PRESS CONTACT:
Guy Lawrence
Ross & Lawrence
212-308-3333
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Datum: 07.08.2012 - 13:17 Uhr
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