W. P. Carey Announces Third Quarter Financial Results
(firmenpresse) - NEW YORK, NY -- (Marketwire) -- 11/08/11 -- Investment firm W. P. Carey & Co. LLC (NYSE: WPC) today reported financial results for the third quarter ended September 30, 2011.
QUARTERLY RESULTS
Funds from operations -- as adjusted (AFFO) for the third quarter of 2011 increased compared to the third quarter of 2010, to $41.6 million or $1.03 per diluted share from $27.6 million or $0.69 per diluted share, respectively. AFFO for the nine months ended September 30, 2011 increased to $153.6 million or $3.80 per diluted share compared to $94.6 million or $2.38 per diluted share for the prior year period.
Cash flow from operating activities for the nine months ended September 30, 2011 increased to $62.7 million compared to $52.3 million for the prior year period, while adjusted cash flow from operating activities increased to $74.5 million in the current year period compared to $64.9 million in the same period last year.
Total revenues net of reimbursed expenses for the third quarter of 2011 increased to $63.7 million from $42.8 million for the third quarter of 2010. Total revenues net of reimbursed expenses for the nine months ended September 30, 2011 increased to $223.8 million from $144.8 million for the prior year period. Reimbursed expenses are excluded from total revenues because they have no impact on net income.
Net Income for the third quarter of 2011 was $25.2 million, compared to $16.3 million for the same period in 2010. For the nine months ended September 30, 2011, net income was $130.0 million, compared to $54.2 million for the comparable period in 2010.
We received approximately $6.1 million in cash distributions from our equity ownership in the CPA® REITs for the quarter ended September 30, 2011 and $27.0 million for the nine months ended September 30, 2011.
Further information concerning AFFO and adjusted cash flow from operating activities -- non-GAAP supplemental performance metrics -- is presented in the accompanying tables.
CPA®:17 - GLOBAL ACTIVITY
On April 7, 2011, CPA®:17 - Global's follow-on offering was declared effective by the SEC, and its initial public offering was terminated. We have raised more than $1.5 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. From the beginning of the follow-on offering through September 30, 2011, we have raised $279.3 million.
Investment volume for CPA®:17 - Global in the third quarter of 2011 was approximately $466 million.
Third quarter transactions included acquisitions of ten self-storage properties totaling $54 million, an $8 million sale-leaseback of an industrial facility in Clarksville, Tennessee and a EUR 292 million ($396 million) acquisition of units in a fund that owns 20 stores leased to Metro Cash & Carry Italia S.p.A. ("Metro Italy"), a subsidiary of Metro AG, the world's fourth largest retailer. Metro AG has guaranteed Metro Italy's obligations under the leases.
CAREY WATERMARK INVESTORS ACTIVITY
To date, CWI has raised approximately $39 million in its initial public offering and closed its second transaction on September 6, 2011. This transaction was a joint venture investment with HRI Properties for the Chateau Bourbon hotel, located in the historic French Quarter of New Orleans.
OWNED ASSET ACTIVITY
In the fourth quarter of 2011, we obtained $24 million of long-term mortgage financing on the iconic Frank Gehry-designed Binoculars Building in Venice, California, which was leased to Google Inc. in February 2011. Google is combining this building with two adjacent buildings to create a large and unique campus environment.
As of September 30, 2011, the occupancy rate of W. P. Carey's 14 million square foot owned portfolio was approximately 91%.
ASSETS UNDER OWNERSHIP AND MANAGEMENT
W. P. Carey is the advisor to the CPA® REITs and CWI, which had total assets of $9.7 billion as of September 30, 2011.
The W. P. Carey Group's assets under ownership and management total approximately $11.8 billion with an occupancy rate of 97% as of September 30, 2011.
DISTRIBUTIONS
The W. P. Carey Board of Directors raised the quarterly cash distribution to $0.56 per share for the third quarter of 2011, equating to an annual rate of $2.24 per share. The distribution --our 42nd consecutive quarterly increase -- was paid on October 14, 2011 to shareholders of record as of September 30, 2011.
Trevor Bond, President and Chief Executive Officer, noted, "Our strong third quarter results demonstrate our continued ability to meet the challenges and to manage the risks inherent in a volatile global economic and political climate. Success in this arena requires strong execution from all our key operating teams: acquisitions, asset management and fundraising. We have been able to take advantage of attractive investment opportunities that meet our established criteria. Year to date acquisition volume has exceeded $1 billion, which is an increase over the same period in 2010. Our focus on long-term investing and adherence to our established risk/return parameters continue to serve us well as we try to deliver a consistent, generally rising income stream to our investors and to provide a solid financial platform for our tenants."
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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 of approximately $11.8 billion. Publicly traded on the New York Stock Exchange (WPC), 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.
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 to 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.
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 but 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.
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 to 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.
COMPANY CONTACT:
Cheryl Perry
W. P. Carey & Co. LLC
212-492-8995
PRESS CONTACT:
Guy Lawrence
Ross & Lawrence
212-308-3333
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Datum: 08.11.2011 - 14:17 Uhr
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