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þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 13-3912578 | |
(State of incorporation) | (I.R.S. Employer Identification No.) |
50 Rockefeller Plaza | ||
New York, New York | 10020 | |
(Address of principal executive offices) | (Zip Code) |
(212) 492-1100
(Registrant’s telephone numbers, including area code)
Page No. | ||||||||
2 | ||||||||
3 | ||||||||
4 | ||||||||
5 | ||||||||
6 | ||||||||
18 | ||||||||
31 | ||||||||
32 | ||||||||
32 | ||||||||
32 | ||||||||
32 | ||||||||
33 | ||||||||
EX-31.1: CERTIFICATION | ||||||||
EX-31.2: CERTIFICATION | ||||||||
EX-32: CERTIFICATIONS |
* | The summarized consolidated financial statements contained herein are unaudited; however, in the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of such financial statements have been included. |
W. P. Carey 3/31/2007 10-Q—1
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(in thousands, except share amounts)
March 31, 2007 | December 31, 2006 | |||||||
(NOTE) | ||||||||
Assets | ||||||||
Real estate, net | $ | 534,159 | $ | 540,504 | ||||
Net investment in direct financing leases | 108,387 | 108,581 | ||||||
Equity investments in real estate | 175,390 | 166,147 | ||||||
Operating real estate, net | 62,019 | 33,606 | ||||||
Assets held for sale | 4,845 | 1,269 | ||||||
Cash and cash equivalents | 13,300 | 22,108 | ||||||
Due from affiliates | 78,648 | 88,884 | ||||||
Goodwill | 63,607 | 63,607 | ||||||
Intangible assets, net | 41,259 | 43,742 | ||||||
Other assets, net | 25,843 | 24,562 | ||||||
Total assets | $ | 1,107,457 | $ | 1,093,010 | ||||
Liabilities and Members’ Equity | ||||||||
Liabilities: | ||||||||
Limited recourse mortgage notes payable | $ | 260,891 | $ | 261,152 | ||||
Unsecured credit facility | 26,000 | 2,000 | ||||||
Secured credit facility | 30,651 | 15,501 | ||||||
Deferred revenue | 45,919 | 40,490 | ||||||
Accounts payable and accrued expenses | 25,701 | 34,047 | ||||||
Income taxes, net | 45,624 | 63,462 | ||||||
Other liabilities | 18,224 | 19,127 | ||||||
Distributions payable | 17,716 | 17,481 | ||||||
Total liabilities | 470,726 | 453,260 | ||||||
Minority interest in consolidated entities | 7,800 | 7,765 | ||||||
Commitments and contingencies (Note 8) | ||||||||
Members’ equity: | ||||||||
Listed shares, no par value, 100,000,000 shares authorized; 38,442,298 and 38,262,157 shares issued and outstanding, respectively | 748,379 | 745,969 | ||||||
Dividends in excess of accumulated earnings | (119,873 | ) | (114,008 | ) | ||||
Accumulated other comprehensive income | 425 | 24 | ||||||
Total members’ equity | 628,931 | 631,985 | ||||||
Total liabilities and members’ equity | $ | 1,107,457 | $ | 1,093,010 | ||||
W. P. Carey 3/31/2007 10-Q—2
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(in thousands, except share and per share amounts)
Three months ended March 31, | ||||||||
2007 | 2006 | |||||||
Revenues | ||||||||
Asset management revenue | $ | 15,034 | $ | 14,362 | ||||
Structuring revenue | 4,583 | 9,892 | ||||||
Reimbursed costs from affiliates | 3,475 | 2,998 | ||||||
Lease revenues | 19,632 | 18,127 | ||||||
Other real estate income | 3,174 | 2,383 | ||||||
45,898 | 47,762 | |||||||
Operating Expenses | ||||||||
General and administrative | (12,237 | ) | (11,158 | ) | ||||
Reimbursable costs | (3,475 | ) | (2,998 | ) | ||||
Depreciation and amortization | (6,944 | ) | (5,970 | ) | ||||
Property expenses | (1,420 | ) | (1,668 | ) | ||||
Other real estate expenses | (2,524 | ) | (1,567 | ) | ||||
(26,600 | ) | (23,361 | ) | |||||
Other Income and Expenses | ||||||||
Other interest income | 598 | 727 | ||||||
Income from equity investments in real estate | 2,438 | 1,550 | ||||||
Minority interest in income | (331 | ) | (862 | ) | ||||
Gain on sale of securities, foreign currency transactions and other gains, net | 186 | 250 | ||||||
Interest expense | (4,863 | ) | (4,388 | ) | ||||
(1,972 | ) | (2,723 | ) | |||||
Income from continuing operations before income taxes | 17,326 | 21,678 | ||||||
Provision for income taxes | (6,378 | ) | (6,722 | ) | ||||
Income from continuing operations | 10,948 | 14,956 | ||||||
Discontinued Operations | ||||||||
Loss from operations of discontinued properties | (148 | ) | (534 | ) | ||||
Impairment charges on assets held for sale | — | (3,357 | ) | |||||
Loss from discontinued operations | (148 | ) | (3,891 | ) | ||||
Net Income | $ | 10,800 | $ | 11,065 | ||||
Basic Earnings (Loss) Per Share | ||||||||
Income from continuing operations | $ | 0.28 | $ | 0.40 | ||||
Loss from discontinued operations | — | (0.10 | ) | |||||
Net income | $ | 0.28 | $ | 0.30 | ||||
Diluted Earnings (Loss) Per Share | ||||||||
Income from continuing operations | $ | 0.27 | $ | 0.39 | ||||
Loss from discontinued operations | — | (0.10 | ) | |||||
Net income | $ | 0.27 | $ | 0.29 | ||||
Distributions Declared Per Share | $ | 0.462 | $ | 0.452 | ||||
Weighted Average Shares Outstanding | ||||||||
Basic | 37,930,777 | 37,727,782 | ||||||
Diluted | 39,851,353 | 38,627,267 | ||||||
W. P. Carey 3/31/2007 10-Q—3
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(in thousands)
Three months ended March 31, | ||||||||
2007 | 2006 | |||||||
Net Income | $ | 10,800 | $ | 11,065 | ||||
Other Comprehensive Income | ||||||||
Change in unrealized appreciation on marketable securities | 18 | 771 | ||||||
Foreign currency translation adjustment | 383 | (282 | ) | |||||
401 | 489 | |||||||
Comprehensive Income | $ | 11,201 | $ | 11,554 | ||||
W. P. Carey 3/31/2007 10-Q—4
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(in thousands)
Three months ended March 31, | ||||||||
2007 | 2006 | |||||||
Cash Flows — Operating Activities | ||||||||
Net income | $ | 10,800 | $ | 11,065 | ||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||||||
Depreciation and amortization including intangible assets and deferred financing costs | 7,308 | 6,229 | ||||||
Income from equity investments in real estate in excess of distributions received | (32 | ) | (247 | ) | ||||
Minority interest in income | 331 | 862 | ||||||
Straight-line rent adjustments | 850 | 732 | ||||||
Management income received in shares of affiliates | (8,467 | ) | (7,892 | ) | ||||
Unrealized gain on foreign currency transactions, warrants and securities | (160 | ) | (165 | ) | ||||
Impairment charges | — | 3,357 | ||||||
(Decrease) increase in income taxes, net | (17,786 | ) | 4,329 | |||||
Realized gain on foreign currency transactions | (26 | ) | (85 | ) | ||||
Stock-based compensation expense | 923 | 719 | ||||||
Deferred acquisition revenue received | 13,882 | 12,543 | ||||||
Increase in structuring revenue receivable | (158 | ) | (3,039 | ) | ||||
Net changes in other operating assets and liabilities | (7,744 | ) | (3,061 | ) | ||||
Net cash (used in) provided by operating activities | (279 | ) | 25,347 | |||||
Cash Flows — Investing Activities | ||||||||
Distributions received from equity investments in real estate in excess of equity income | 1,093 | 1,400 | ||||||
Purchases of real estate and equity investments in real estate | (27,710 | ) | — | |||||
Capital expenditures | (3,881 | ) | (674 | ) | ||||
Release of funds from escrow in connection with the sale of property | 465 | — | ||||||
Payment of deferred acquisition revenue to affiliate | (536 | ) | (524 | ) | ||||
Net cash (used in) provided by investing activities | (30,569 | ) | 202 | |||||
Cash Flows — Financing Activities | ||||||||
Distributions paid | (17,484 | ) | (16,965 | ) | ||||
Contributions from minority interests | 206 | 506 | ||||||
Distributions to minority interests | (577 | ) | (136 | ) | ||||
Scheduled payments of mortgage principal | (2,618 | ) | (2,916 | ) | ||||
Proceeds from mortgages and credit facilities | 54,059 | 10,000 | ||||||
Prepayments of mortgage principal and credit facilities | (13,000 | ) | (19,000 | ) | ||||
Release of funds from escrow in connection with the financing of properties | — | 4,031 | ||||||
Payment of financing costs | (69 | ) | (217 | ) | ||||
Proceeds from issuance of shares | 1,000 | 1,323 | ||||||
Excess tax benefits associated with stock based compensation awards | 487 | 77 | ||||||
Repurchase and retirement of shares | — | (482 | ) | |||||
Net cash provided by (used in) financing activities | 22,004 | (23,779 | ) | |||||
Change in Cash and Cash Equivalents During the Period | ||||||||
Effect of exchange rate changes on cash | 36 | 49 | ||||||
Net (decrease) increase in cash and cash equivalents | (8,808 | ) | 1,819 | |||||
Cash and cash equivalents, beginning of period | 22,108 | �� | 13,014 | |||||
Cash and cash equivalents, end of period | $ | 13,300 | $ | 14,833 | ||||
W. P. Carey 3/31/2007 10-Q—5
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(in thousands, except share and per share amounts)
W. P. Carey 3/31/2007 10-Q—6
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W. P. Carey 3/31/2007 10-Q—7
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W. P. Carey 3/31/2007 10-Q—8
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March 31, 2007 | December 31, 2006 | |||||||
Cost | $ | 617,116 | $ | 620,472 | ||||
Less: Accumulated depreciation | (82,957 | ) | (79,968 | ) | ||||
$ | 534,159 | $ | 540,504 | |||||
W. P. Carey 3/31/2007 10-Q—9
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March 31, 2007 | December 31, 2006 | |||||||
Cost (1) | $ | 69,090 | $ | 41,275 | ||||
Less: Accumulated depreciation | (7,071 | ) | (7,669 | ) | ||||
$ | 62,019 | $ | 33,606 | |||||
(1) | Includes $3,007 of costs incurred through March 31, 2007 in connection with renovations to the hotel facility, which is scheduled for completion in 2008. |
% of Outstanding | ||||||||
Shares | Shares | |||||||
CPA®:14 | 5,120,021 | 5.85 | % | |||||
CPA®:15 | 4,832,275 | 3.75 | % | |||||
CPA®:16 - Global | 1,067,133 | 0.93 | % |
March 31, 2007 | December 31, 2006 | |||||||
Assets (primarily real estate) | $ | 6,990,003 | $ | 6,849,781 | ||||
Liabilities (primarily mortgage notes payable) | (3,857,155 | ) | (3,695,811 | ) | ||||
Owner’s equity | $ | 3,132,848 | $ | 3,153,970 | ||||
Our share of equity investees’ net assets | $ | 175,390 | $ | 166,147 | ||||
W. P. Carey 3/31/2007 10-Q—10
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Three months ended March 31, | ||||||||
2007 | 2006 | |||||||
Revenue (primarily rental income and interest income from direct financing leases) | 138,385 | $ | 122,936 | |||||
Expenses (primarily depreciation and property expenses) | (59,292 | ) | (48,995 | ) | ||||
Income from equity investments in real estate | 6,363 | 11,601 | ||||||
Other interest income | 9,063 | 3,610 | ||||||
Minority interest in income | (6,801 | ) | (7,949 | ) | ||||
Gain on sales of real estate, derivatives and foreign currency transactions, net | 1,339 | 1,150 | ||||||
Interest expense | (54,422 | ) | (47,298 | ) | ||||
Income from continuing operations | 34,635 | 35,055 | ||||||
Income from discontinued operations | 183 | 1,888 | ||||||
Gain on sale of real estate, net | — | 2,846 | ||||||
Impairment charge on assets held for sale | — | (400 | ) | |||||
Minority interest in income of discontinued operations | — | (808 | ) | |||||
Net income | $ | 34,818 | $ | 38,581 | ||||
Our share of net income from equity investments in real estate | $ | 2,438 | $ | 1,550 | ||||
Three months ended March 31, | ||||||||
2007 | 2006 | |||||||
Revenues (primarily rental revenues and other operating income) | $ | 244 | $ | 734 | ||||
Expenses (primarily interest on mortgages, depreciation and property expenses) | (392 | ) | (1,268 | ) | ||||
Impairment charges on assets held for sale | — | (3,357 | ) | |||||
Loss from discontinued operations | $ | (148 | ) | $ | (3,891 | ) | ||
W. P. Carey 3/31/2007 10-Q—11
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March 31, 2007 | December 31, 2006 | |||||||
Amortized Intangibles: | ||||||||
Management contracts | $ | 32,765 | $ | 32,765 | ||||
Less: accumulated amortization | (18,636 | ) | (17,943 | ) | ||||
14,129 | 14,822 | |||||||
Lease Intangibles: | ||||||||
In-place lease | $ | 18,345 | $ | 18,345 | ||||
Tenant relationship | 8,783 | 8,783 | ||||||
Above-market rent | 9,707 | 9,707 | ||||||
Less: accumulated amortization | (13,680 | ) | (11,890 | ) | ||||
$ | 23,155 | $ | 24,945 | |||||
Unamortized Goodwill and Indefinite-Lived Intangible Assets: | ||||||||
Goodwill | $ | 63,607 | $ | 63,607 | ||||
Trade name | 3,975 | 3,975 | ||||||
$ | 67,582 | $ | 67,582 | |||||
Below-market rent | $ | (2,009 | ) | $ | (2,009 | ) | ||
Less: accumulated amortization | 352 | 325 | ||||||
$ | (1,657 | ) | $ | (1,684 | ) | |||
W. P. Carey 3/31/2007 10-Q—12
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W. P. Carey 3/31/2007 10-Q—13
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W. P. Carey 3/31/2007 10-Q—14
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Three months ended March 31, | ||||||||
2007 | 2006 | |||||||
Net income — basic | $ | 10,800 | $ | 11,065 | ||||
Income effect of dilutive securities, net of taxes | 100 | — | ||||||
Net income — diluted | 10,900 | 11,065 | ||||||
Weighted average shares — basic | 37,930,777 | 37,727,782 | ||||||
Effect of dilutive securities | 1,920,576 | 899,485 | ||||||
Weighted average shares — diluted | 39,851,353 | 38,627,267 | ||||||
W. P. Carey 3/31/2007 10-Q—15
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Three months ended March 31, | ||||||||
2007 | 2006 | |||||||
Management Services | ||||||||
Revenues | $ | 23,092 | $ | 27,252 | ||||
Operating expenses | (14,636 | ) | (14,071 | ) | ||||
Other, net(1) | 2,071 | 1,080 | ||||||
Provision for income taxes | (6,138 | ) | (6,532 | ) | ||||
Income from continuing operations | $ | 4,389 | $ | 7,729 | ||||
Real Estate(2) | ||||||||
Revenues | $ | 22,806 | $ | 20,510 | ||||
Operating expenses | (11,964 | ) | (9,290 | ) | ||||
Interest expense | (4,863 | ) | (4,388 | ) | ||||
Other, net(1) | 820 | 585 | ||||||
Provision for income taxes | (240 | ) | (190 | ) | ||||
Income from continuing operations | $ | 6,559 | $ | 7,227 | ||||
Total Company | ||||||||
Revenues | $ | 45,898 | $ | 47,762 | ||||
Operating expenses | (26,600 | ) | (23,361 | ) | ||||
Interest expense | (4,863 | ) | (4,388 | ) | ||||
Other, net(1) | 2,891 | 1,665 | ||||||
Provision for income taxes | (6,378 | ) | (6,722 | ) | ||||
Income from continuing operations | $ | 10,948 | $ | 14,956 | ||||
Equity Investments in Real Estate as of | Total Long-Lived Assets(3)as of | Total Assets as of | ||||||||||||||||||||||
March 31, 2007 | December 31, 2006 | March 31, 2007 | December 31, 2006 | March 31, 2007 | December 31, 2006 | |||||||||||||||||||
Management Services | $ | 115,488 | $ | 107,391 | $ | 130,532 | $ | 122,828 | $ | 288,484 | $ | 299,036 | ||||||||||||
Real Estate | 59,902 | 58,756 | 786,707 | 765,777 | 818,973 | 793,974 | ||||||||||||||||||
Total Company | $ | 175,390 | $ | 166,147 | $ | 917,239 | $ | 888,605 | $ | 1,107,457 | $ | 1,093,010 | ||||||||||||
(1) | Includes interest income, minority interest, income from equity investments in real estate and gains and losses on sales and foreign currency transactions. | |
(2) | Includes eight investments in France that accounted for lease revenues (rental income and interest income from direct financing leases) of $2,101 and $1,988 for the three months ended March 31, 2007 and 2006, respectively, and income from equity investments in real estate of $249 and $203 for the three months ended March 31, 2007 and 2006, respectively. These investments also accounted for long-lived assets as of March 31, 2007 and December 31, 2006 of $92,902 and $90,888, respectively. | |
(3) | Includes real estate, net investment in direct financing leases, equity investments in real estate, operating real estate and intangible assets related to management contracts. |
W. P. Carey 3/31/2007 10-Q—16
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W. P. Carey 3/31/2007 10-Q—17
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FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(in thousands, except share and per share amounts)
W. P. Carey 3/31/2007 10-Q—18
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W. P. Carey 3/31/2007 10-Q—19
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W. P. Carey 3/31/2007 10-Q—20
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Three months ended March 31, | ||||||||||||
2007 | 2006 | Change | ||||||||||
Revenues | ||||||||||||
Asset management revenue | $ | 15,034 | $ | 14,362 | $ | 672 | ||||||
Structuring revenue | 4,583 | 9,892 | (5,309 | ) | ||||||||
Reimbursed costs from affiliates | 3,475 | 2,998 | 477 | |||||||||
23,092 | 27,252 | (4,160 | ) | |||||||||
Operating Expenses | ||||||||||||
General and administrative | (10,115 | ) | (9,618 | ) | (497 | ) | ||||||
Reimbursable costs | (3,475 | ) | (2,998 | ) | (477 | ) | ||||||
Depreciation and amortization | (1,046 | ) | (1,455 | ) | 409 | |||||||
(14,636 | ) | (14,071 | ) | (565 | ) | |||||||
Other Income and Expenses | ||||||||||||
Other interest income | 527 | 542 | (15 | ) | ||||||||
Income from equity investments in real estate | 1,477 | 984 | 493 | |||||||||
Minority interest in loss (income) | 67 | (446 | ) | 513 | ||||||||
2,071 | 1,080 | 991 | ||||||||||
Income from continuing operations before income taxes | 10,527 | 14,261 | (3,734 | ) | ||||||||
Provision for income taxes | (6,138 | ) | (6,532 | ) | 394 | |||||||
Net income from management services operations | $ | 4,389 | $ | 7,729 | $ | (3,340 | ) | |||||
W. P. Carey 3/31/2007 10-Q—21
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W. P. Carey 3/31/2007 10-Q—22
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W. P. Carey 3/31/2007 10-Q—23
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Three months ended March 31, | ||||||||||||
2007 | 2006 | Change | ||||||||||
Revenues | ||||||||||||
Lease revenues | $ | 19,632 | $ | 18,127 | $ | 1,505 | ||||||
Other real estate income | 3,174 | 2,383 | 791 | |||||||||
22,806 | 20,510 | 2,296 | ||||||||||
Operating Expenses | ||||||||||||
General and administrative | (2,122 | ) | (1,540 | ) | (582 | ) | ||||||
Depreciation and amortization | (5,898 | ) | (4,515 | ) | (1,383 | ) | ||||||
Property expenses | (1,420 | ) | (1,668 | ) | 248 | |||||||
Other real estate expenses | (2,524 | ) | (1,567 | ) | (957 | ) | ||||||
(11,964 | ) | (9,290 | ) | (2,674 | ) | |||||||
Other Income and Expenses | ||||||||||||
Other interest income | 71 | 185 | (114 | ) | ||||||||
Income from equity investments in real estate | 961 | 566 | 395 | |||||||||
Minority interest in income | (398 | ) | (416 | ) | 18 | |||||||
Gain on sale of securities, foreign currency transactions and other gains, net | 186 | 250 | (64 | ) | ||||||||
Interest expense | (4,863 | ) | (4,388 | ) | (475 | ) | ||||||
(4,043 | ) | (3,803 | ) | (240 | ) | |||||||
Income from continuing operations before income taxes | 6,799 | 7,417 | (618 | ) | ||||||||
Provision for income taxes | (240 | ) | (190 | ) | (50 | ) | ||||||
Income from continuing operations | 6,559 | 7,227 | (668 | ) | ||||||||
Loss from discontinued operations | (148 | ) | (3,891 | ) | 3,743 | |||||||
Net income from real estate operations | $ | 6,411 | $ | 3,336 | $ | 3,075 | ||||||
Three months ended March 31, | ||||||||
2007 | 2006 | |||||||
Rental income | $ | 16,579 | $ | 14,706 | ||||
Interest income from direct financing leases | 3,053 | 3,421 | ||||||
$ | 19,632 | $ | 18,127 | |||||
W. P. Carey 3/31/2007 10-Q—24
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Three months ended March 31, | ||||||||
2007 | 2006 | |||||||
Bouygues Telecom, S.A.(a) (b) | $ | 1,279 | $ | 1,142 | ||||
CheckFree Holdings Corporation Inc.(b) | 1,179 | 1,151 | ||||||
Detroit Diesel Corporation | 1,159 | 1,159 | ||||||
Dr Pepper Bottling Company of Texas | 1,119 | 1,102 | ||||||
Orbital Sciences Corporation | 756 | 756 | ||||||
Titan Corporation | 728 | 725 | ||||||
America West Holdings Corp. | 694 | 709 | ||||||
AutoZone, Inc. | 554 | 554 | ||||||
Quebecor Printing, Inc. | 485 | 485 | ||||||
Sybron Dental Specialties Inc. | 443 | 443 | ||||||
Unisource Worldwide, Inc. | 422 | 424 | ||||||
Werner Corporation(c) | 407 | — | ||||||
BE Aerospace, Inc. | 395 | 395 | ||||||
Lowe’s Home Improvement Warehouse (F/K/A Eagle Hardware & Garden, Inc.) | 394 | 373 | ||||||
CSS Industries, Inc. | 392 | 392 | ||||||
Lucent Technologies, Inc. | 380 | 380 | ||||||
Career Education Corporation(d) | 375 | — | ||||||
Sprint Spectrum, L.P. | 356 | 356 | ||||||
EnviroWorks, Inc. | 338 | 313 | ||||||
PPD Development, Inc.(d) | 332 | — | ||||||
AT&T Corporation | 315 | 315 | ||||||
Omnicom Group, Inc. | 313 | 285 | ||||||
BellSouth Telecommunications, Inc. | 301 | 306 | ||||||
Other(a) (b) (d) | 6,516 | 6,362 | ||||||
$ | 19,632 | $ | 18,127 | |||||
(a) | Revenue amounts are subject to fluctuations in foreign currency exchange rates. | |
(b) | Lease revenues applicable to minority interests in the consolidated amounts above total $1,016 and $987 for the three months ended March 31, 2007 and 2006, respectively. | |
(c) | New tenant at existing property. | |
(d) | Includes the CPA®:12 real estate interests acquired in December 2006. |
Three months ended March 31, | ||||||||
2007 | 2006 | |||||||
Carrefour France, SA (a) (b) | $ | 2,314 | $ | 877 | ||||
Federal Express Corporation | 686 | 679 | ||||||
Medica — France, SA (a) (c) | 517 | — | ||||||
Information Resources, Inc. | 466 | 466 | ||||||
Sicor, Inc. | 418 | 418 | ||||||
Hologic, Inc. | 278 | 284 | ||||||
Consolidated Systems, Inc.(d) | 271 | — | ||||||
Childtime Childcare, Inc. | 125 | 125 | ||||||
The Retail Distribution Group(c) | 80 | — | ||||||
$ | 5,155 | $ | 2,849 | |||||
W. P. Carey 3/31/2007 10-Q—25
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(a) | Revenue amounts are subject to fluctuations in foreign currency exchange rates. | |
(b) | We increased our interest in this property to 49.6% in December 2006 as a result of the CPA®:12 Acquisition. | |
(c) | Includes the CPA®:12 real estate interests acquired in December 2006. | |
(d) | We acquired our interest in this property in 2006. |
W. P. Carey 3/31/2007 10-Q—26
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W. P. Carey 3/31/2007 10-Q—27
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March 31, | ||||||||
2007 | 2006 | |||||||
Balance: | ||||||||
Fixed rate | $ | 200,695 | $ | 178,928 | ||||
Variable rate(1) | 116,847 | 76,968 | ||||||
$ | 317,542 | $ | 255,896 | |||||
Percent of total debt: | ||||||||
Fixed rate | 63 | % | 70 | % | ||||
Variable rate(1) | 37 | % | 30 | % | ||||
100 | % | 100 | % | |||||
Weighted average interest rate at end of period: | ||||||||
Fixed rate | 6.52 | % | 6.92 | % | ||||
Variable rate(1) | 5.93 | % | 4.77 | % |
(1) | Included in variable rate debt as of March 31, 2007 is (i) $30,651 outstanding under our secured credit facility, (ii) $26,000 outstanding under our unsecured credit facility, and (iii) $60,196 in mortgage obligations which are currently fixed rate but which have interest rate reset features which may change the interest rates to then prevailing market fixed rates at certain points in their term. |
- | Cash and cash equivalents totaling $13,300, of which $5,101 was held in foreign bank accounts to maintain local capital requirements; | ||
- | Unsecured credit facility with unused capacity of up to $149,000, which may also be used to loan funds to our affiliates (see Current Developments and Trends); | ||
- | Unleveraged properties with a carrying value of $241,777, subject to meeting certain financial ratios on our unsecured credit facility; and | ||
- | Secured credit facility with unused capacity of up to $74,349, available to a wholly owned subsidiary to finance self-storage acquisitions. |
March 31, 2007 | December 31, 2006 | |||||||||||||||
Maximum | Outstanding | Maximum | Outstanding | |||||||||||||
Available | Balance | Available | Balance | |||||||||||||
Unsecured credit facility | $ | 175,000 | $ | 26,000 | $ | 175,000 | $ | 2,000 | ||||||||
Secured credit facility | 105,000 | 30,651 | 105,000 | 15,501 | ||||||||||||
Total | $ | 280,000 | $ | 56,651 | $ | 280,000 | $ | 17,501 | ||||||||
W. P. Carey 3/31/2007 10-Q—28
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Less than | More than | |||||||||||||||||||
Total | 1 year | 1-3 years | 3-5 years | 5 years | ||||||||||||||||
Mortgage notes payable — Principal | $ | 260,891 | $ | 25,614 | $ | 55,869 | $ | 46,139 | $ | 133,269 | ||||||||||
Mortgage notes payable — Interest(1) | 78,956 | 15,304 | 25,152 | 17,411 | 21,089 | |||||||||||||||
Unsecured credit facility — Principal | 26,000 | 26,000 | — | — | — | |||||||||||||||
Unsecured credit facility — Interest(1) | 470 | 470 | — | — | — | |||||||||||||||
Secured credit facility — Principal | 30,651 | — | 30,651 | — | — | |||||||||||||||
Secured credit facility — Interest(1) | 3,922 | 2,320 | 1,602 | — | — | |||||||||||||||
Deferred acquisition compensation due to affiliates — Principal | 137 | 137 | — | — | — | |||||||||||||||
Deferred acquisition compensation due to affiliates — Interest | 8 | 8 | — | — | — | |||||||||||||||
Operating leases(2) | 7,984 | 795 | 1,597 | 1,659 | 3,933 | |||||||||||||||
Property improvements(3) | 10,827 | 10,598 | 229 | — | — | |||||||||||||||
Other commitments(4) | 600 | 600 | — | — | — | |||||||||||||||
$ | 420,446 | $ | 81,846 | $ | 115,100 | $ | 65,209 | $ | 158,291 | |||||||||||
(1) | Interest on variable rate debt obligations was calculated using the variable interest rate and balance outstanding as of March 31, 2007. | |
(2) | Operating lease obligations consist primarily of the total minimum rents payable on the lease for our principal offices. We are reimbursed by affiliates for their share of the future minimum rents under an office cost-sharing agreement. These amounts are allocated among the entities based on gross revenues and are adjusted quarterly. | |
(3) | Represents remaining share of landlord improvements at two properties. | |
(4) | Represents a commitment to contribute capital to an investment in India. |
W. P. Carey 3/31/2007 10-Q—29
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W. P. Carey 3/31/2007 10-Q—30
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(in thousands)
2007 | 2008 | 2009 | 2010 | 2011 | Thereafter | Total | Fair value | |||||||||||||||||||||||||
Fixed rate debt | $ | 21,402 | $ | 8,390 | $ | 35,473 | $ | 13,105 | $ | 25,632 | $ | 96,693 | $ | 200,695 | $ | 201,192 | ||||||||||||||||
Weighted average interest rate | 7.82 | % | 7.26 | % | 7.28 | % | 7.34 | % | 7.32 | % | 5.55 | % | ||||||||||||||||||||
Variable rate debt | $ | 28,290 | $ | 38,976 | $ | 3,559 | $ | 3,732 | $ | 3,904 | $ | 38,386 | $ | 116,847 | $ | 116,847 |
W. P. Carey 3/31/2007 10-Q—31
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Exhibit No. | Description | Method of Filing | ||
31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | Filed herewith | ||
31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | Filed herewith | ||
32 | Chief Executive Officer and Chief Financial Officer’s certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | Filed herewith |
W. P. Carey 3/31/2007 10-Q—32
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W. P. Carey & Co. LLC | ||||||
Date 5/10/2007 | By: | /s/ Mark J. DeCesaris | ||||
Mark J. DeCesaris | ||||||
Managing Director and acting Chief Financial Officer | ||||||
(acting Principal Financial Officer) | ||||||
Date 5/10/2007 | By: | /s/ Claude Fernandez | ||||
Claude Fernandez | ||||||
Managing Director and Chief Accounting Officer | ||||||
(Principal Accounting Officer) |
W. P. Carey 3/31/2007 10-Q—33