W. P. Carey (WPC) 8-K Results of Operations and Financial Condition

Exhibit 99.2

W. P. Carey Inc.

Supplemental Information

Third Quarter 2019

Important Disclosures About This Supplemental Package

As used in this supplemental package, the terms “W. P. Carey,” “WPC,” “we,” “us” and “our” include W. P. Carey Inc., its consolidated subsidiaries and its predecessors, unless otherwise indicated. “REIT” means real estate investment trust. “CPA:17 – Global” means Corporate Property Associates 17 – Global Incorporated. “CPA:18 – Global” means Corporate Property Associates 18 – Global Incorporated. “CWI REITs” means Carey Watermark Investors Incorporated (“CWI 1”) and Carey Watermark Investors 2 Incorporated (“CWI 2”). “Managed REITs” means CPA:18 – Global and the CWI REITs. “Managed Programs” means the Managed REITs and Carey European Student Housing Fund I, L.P. (“CESH”). “CPA:17 Merger” means our merger with CPA:17 – Global, which was completed on October 31, 2018. CPA:17 – Global was included in the Managed REITs prior to the CPA:17 Merger. “U.S.” means United States. “AUM” means assets under management. “ABR” means contractual minimum annualized base rent. “SEC” means Securities and Exchange Commission.

Amounts may not sum to totals due to rounding.

Important Note Regarding Non-GAAP Financial Measures

This supplemental package includes certain “non-GAAP” supplemental measures that are not defined by generally accepted accounting principles (“GAAP”), including funds from operations (“FFO”); adjusted funds from operations (“AFFO”); earnings before interest, taxes, depreciation and amortization (“EBITDA”); adjusted EBITDA; pro rata cash net operating income (“pro rata cash NOI”); and normalized pro rata cash NOI. A description of these non-GAAP financial measures and reconciliations to their most directly comparable GAAP measures, as well as a description of other metrics presented, are provided within the Appendix to this supplemental package. FFO is a non-GAAP measure defined by the National Association of Real Estate Investments Trusts, Inc. (“NAREIT”), an industry trade group.

W. P. Carey Inc.

Supplemental Information –Third Quarter 2019

Table of Contents

Overview
Summary Metrics	1
Components of Net Asset Value	3
Financial Results
Statements of Income – Last Five Quarters
Consolidated	6
Real Estate	7
Investment Management	8
FFO and AFFO – Last Five Quarters
Consolidated	9
Real Estate	10
Investment Management	11
Elements of Pro Rata Statement of Income and AFFO Adjustments	12
Capital Expenditures	14
Balance Sheets and Capitalization
Consolidated Balance Sheets	16
Capitalization	17
Debt Overview	18
Debt Maturity	19
Senior Unsecured Notes	20
Real Estate
Investment Activity
Capital Investment Projects	22
Acquisitions and Completed Capital Investment Projects	23
Dispositions	24
Joint Ventures	25
Top Ten Tenants	26
Diversification by Property Type	27
Diversification by Tenant Industry	28
Diversification by Geography	29
Contractual Rent Increases	30
Same Store Analysis	31
Leasing Activity	32
Lease Expirations – Total Net-Lease Portfolio	33
Lease Expirations – Unencumbered Net-Lease Portfolio	34
Investment Management
Selected Information – Managed Programs	36
Managed Programs Fee Summary	37
Investment Activity – Managed Programs	38
Summary of Future Liquidity Strategies for the Managed Programs	39
Summary of Back-End Fees for / Interests in the Managed Programs	40
Appendix
Normalized Pro Rata Cash NOI	42
Adjusted EBITDA – Last Five Quarters
Consolidated	44
Real Estate	45
Investment Management	46
Terms and Definitions	47

W. P. Carey Inc.

Overview –Third Quarter 2019

Summary Metrics

As of or for the three months ended September 30, 2019.

Financial Results
	Segment
	Owned Real Estate		Investment Management		Total
Revenues, including reimbursable costs – consolidated ($000s)	$	302,754	$	15,251	$	318,005
Net income attributable to W. P. Carey ($000s)	33,556		7,783		41,339
Net income attributable to W. P. Carey per diluted share	0.19		0.05		0.24
Normalized pro rata cash NOI from real estate ($000s) (a) (b)	271,132		N/A		271,132
Adjusted EBITDA ($000s) (a)(b)	274,796		13,122		287,918
AFFO attributable to W. P. Carey ($000s) (a) (b)	212,859		11,364		224,223
AFFO attributable to W. P. Carey per diluted share (a)(b)	1.23		0.07		1.30
Dividends declared per share – third quarter					1.036
Dividends declared per share – third quarter annualized					4.144
Dividend yield – annualized, based on quarter end share price of $89.50					4.6		%
Dividend payout ratio – for the nine months ended September 30, 2019 (c)					83.4		%
Balance Sheet and Capitalization
Equity market capitalization – based on quarter end share price of $89.50 ($000s)					$	15,418,738
Pro rata net debt ($000s) (d)					6,021,841
Enterprise value ($000s)					21,440,579
Total consolidated debt ($000s)					6,097,189
Gross assets ($000s) (e)					14,978,989
Liquidity ($000s) (f)					1,809,277
Pro rata net debt to enterprise value (b)					28.1		%
Pro rata net debt to adjusted EBITDA (annualized) (a)(b)					5.2x
Total consolidated debt to gross assets					40.7		%
Weighted-average interest rate (b)					3.3		%
Weighted-average debt maturity (years) (b)					5.3
Moody's Investors Service – corporate rating					Baa2 (stable)
Standard & Poor's Ratings Services – issuer rating					BBB (positive)
Real Estate Portfolio (Pro Rata)
ABR ($000s) (g)					$	1,117,381
Number of net-leased properties					1,204
Number of operating properties (h)					21
Number of tenants –net-leased properties					324
ABR from investment grade tenants as a % of total ABR – net-leased properties (i)					29.7		%
Net-leased properties – square footage (millions)					137.5
Occupancy – net-leased properties					98.4		%
Weighted-average lease term (years)					10.3
Maximum commitment for capital investment projects expected to be completed during 2019 ($000s)					$	114,409
Acquisitions and completed capital investment projects – third quarter ($000s)					61,689
Dispositions – third quarter ($000s)					14,132

________

(a) Normalized pro rata cash NOI, Adjusted EBITDA and AFFO are non-GAAP measures. See the Terms and Definitions section in the Appendix for a description of our non-GAAP measures and for details on how certain non-GAAP measures are calculated.

(b) Presented on a pro rata basis. See the Terms and Definitions section in the Appendix for a description of pro rata.

(c) Represents dividends declared per share divided by AFFO per diluted share on a year-to-date basis.

(d) Represents total pro rata debt outstanding less consolidated cash and cash equivalents. See the Terms and Definitions section in the Appendix for a description of pro rata.

(e) Gross assets represent consolidated total assets before accumulated depreciation on buildings and improvements. Gross assets are net of accumulated amortization on in-place lease intangible assets of $632.8 million and above-market rent intangible assets of $386.1 million.

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W. P. Carey Inc.

Overview –Third Quarter 2019

(f) Represents availability on our Senior Unsecured Credit Facility plus consolidated cash and cash equivalents.

(g) See the Terms and Definitions section in the Appendix for a description of ABR.

(h) Comprised of 19 self-storage properties and two hotels.

(i) Percentage of portfolio is based on ABR, as of September 30, 2019. Includes tenants or guarantors with investment grade ratings (20.9%) and subsidiaries of non-guarantor parent companies with investment grade ratings (8.8%). Investment grade refers to an entity with a rating of BBB- or higher from Standard & Poor’s Ratings Services or Baa3 or higher from Moody’s Investors Service. See the Terms and Definitions section in the Appendix for a description of ABR.

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W. P. Carey Inc.

Overview –Third Quarter 2019

Components of Net Asset Value

Dollars in thousands, except per share amounts.

Real Estate	Three Months Ended Sep. 30, 2019		Annualized
Normalized pro rata cash NOI (a) (b)	$	271,132	$	1,084,528
Investment Management
Adjusted EBITDA (a) (b)	13,122		52,488
Selected Components of Adjusted EBITDA:
Asset management revenue (c)	9,878		39,512
Structuring and other advisory revenue (c)	587		N/A
Operating partnership interests in real estate cash flow of Managed REITs (d)	4,642		18,568
Back-end fees and interests associated with the Managed Programs	See the Summary of Back-End Fees for / Interests in the Managed Programs section for details.
Balance Sheet – Selected Information (Consolidated Unless Otherwise Stated)			As of Sep. 30, 2019
Assets
Book value of real estate excluded from normalized pro rata cash NOI (e)			$	232,589
Cash and cash equivalents			331,687
Due from affiliates			86,400
Other assets, net:
Straight-line rent adjustments			$	125,814
Investment in shares of a cold storage operator			110,046
Loans receivable			57,737
Restricted cash, including escrow			57,042
Securities and derivatives			45,012
Deferred charges			39,860
Accounts receivable			38,761
Taxes receivable			37,110
Investment in shares of Guggenheim Credit Income Fund			19,087
Deposits for construction and dispositions			16,075
Prepaid expenses			12,842
Deferred income taxes			10,192
Office lease right-of-use assets, net (f)			8,868
Other intangible assets, net			8,767
Leasehold improvements, furniture and fixtures			1,733
Other			1,178
Total other assets, net			$	590,124
Liabilities
Total pro rata debt outstanding (b)			$	6,353,528
Dividends payable			180,797
Deferred income taxes			163,036
Accounts payable, accrued expenses and other liabilities:
Accounts payable and accrued expenses			$	156,203
Prepaid and deferred rents			104,645
Operating lease liabilities (f)			87,985
Accrued taxes payable			41,366
Tenant security deposits			40,148
Securities and derivatives			5,734
Other			34,459
Total accounts payable, accrued expenses and other liabilities			$	470,540

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W. P. Carey Inc.

Overview –Third Quarter 2019

Other	Ownership %		Number of Shares / Units Owned	NAV			Implied Value
			A	B			A x B
Ownership in Managed Programs: (g)
CPA:18 – Global	3.8	%	5,588,693	$	8.91	(h)	$	49,795
CWI 1	3.7	%	5,301,305	10.39		(h)	55,081
CWI 2	3.5	%	3,261,928	11.41		(h)	37,219
CESH	2.4	%	3,492	1,000.00		(i)	3,492
							$	145,587

________

(a) Normalized pro rata cash NOI and Adjusted EBITDA are non-GAAP measures. See the Terms and Definitions section in the Appendix for a description of our non-GAAP measures and for details on how they are calculated.

(b) Presented on a pro rata basis. See the Terms and Definitions section in the Appendix for a description of pro rata.

(c) Amounts are gross of fees paid to the respective subadvisors of CWI 1 and CWI 2.

(d) We are entitled to receive distributions of up to 10% of the Available Cash of each of the Managed REITs, as defined in their respective operating partnership agreements. Pursuant to the terms of their subadvisory agreements, however, 20% of the distributions of Available Cash we receive from CWI 1 and 25% of the distributions of Available Cash we receive from CWI 2 are paid to their respective subadvisors. Amounts for CWI 1 and CWI 2 are net of fees paid to their respective subadvisors.

(e) Represents the value of real estate not included in normalized pro rata cash NOI, such as vacant assets, in-progress build-to-suit properties, a common equity interest in a Las Vegas retail center and an unstabilized hotel operating property, which was classified as held for sale as of September 30, 2019.

(f) We adopted Accounting Standards Update 2016-02, Leases (Topic 842) for our interim and annual periods beginning January 1, 2019, whereby the rights and obligations of lessees under substantially all leases, existing and new, are capitalized and recorded on the balance sheet. As a result, we recognized $112.2 million of land lease right-of-use assets included in In-place lease intangible assets and other, $8.9 million of office lease right-of-use assets in Other assets, net, and $88.0 million of corresponding operating lease liabilities for certain operating office and land lease arrangements in Accounts payable, accrued expenses and other liabilities as of September 30, 2019.

(g) Separate from operating partnership interests in the Managed REITs and our interests in unconsolidated real estate joint ventures with our affiliate, CPA:18 – Global.

(h) We calculated the estimated net asset values per share (“NAVs”) by relying in part on an estimate of the fair market values of the respective real estate portfolios adjusted to give effect to mortgage loans, both provided by third parties, as well as other adjustments. Refer to the SEC filings of the Managed REITs for the calculation methodologies of the respective NAVs.

(i) We own limited partnership units of CESH at its private placement price of $1,000 per unit; we do not intend to calculate a NAV for CESH.

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W. P. Carey Inc.

Financial Results

Third Quarter 2019

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W. P. Carey Inc.

Financial Results – Third Quarter 2019

Consolidated Statements of Income – Last Five Quarters

In thousands, except share and per share amounts.

	Three Months Ended
	Sep. 30, 2019			Jun. 30, 2019			Mar. 31, 2019			Dec. 31, 2018			Sep. 30, 2018
Revenues
Real Estate:
Lease revenues	$	278,839		$	269,802		$	262,939		$	233,632		$	173,067
Lease termination income and other	14,377			6,304			3,270			2,952			1,981
Operating property revenues	9,538			15,436			15,996			11,707			4,282
	302,754			291,542			282,205			248,291			179,330
Investment Management:
Asset management revenue	9,878			9,790			9,732			11,954			17,349
Reimbursable costs from affiliates	4,786			3,821			3,868			5,042			6,042
Structuring and other advisory revenue	587			58			2,518			8,108			6,663
	15,251			13,669			16,118			25,104			30,054
	318,005			305,211			298,323			273,395			209,384
Operating Expenses
Depreciation and amortization	109,517			113,632			112,379			93,321			67,825
Impairment charges	25,781			—			—			—			—
General and administrative	17,210			19,729			21,285			17,449			15,863
Reimbursable tenant costs	15,611			13,917			13,171			10,145			5,979
Property expenses, excluding reimbursable tenant costs	10,377			9,915			9,912			8,319			4,898
Operating property expenses	8,547			10,874			10,594			7,844			3,055
Reimbursable costs from affiliates	4,786			3,821			3,868			5,042			6,042
Stock-based compensation expense	4,747			4,936			4,165			3,902			2,475
Subadvisor fees (a)	1,763			1,650			2,202			2,226			3,127
Merger and other expenses (b)	70			696			146			37,098			1,673
	198,409			179,170			177,722			185,346			110,937
Other Income and Expenses
Interest expense	(58,626		)	(59,719		)	(61,313		)	(57,250		)	(41,740		)
Other gains and (losses) (c)	(12,402		)	(671		)	955			13,215			8,875
(Loss) gain on change in control of interests (d) (e)	(8,416		)	—			—			47,814			—
Equity in earnings of equity method investments in the Managed Programs and real estate	5,769			3,951			5,491			15,268			18,363
Gain (loss) on sale of real estate, net	71			(362		)	933			99,618			343
	(73,604		)	(56,801		)	(53,934		)	118,665			(14,159		)
Income before income taxes	45,992			69,240			66,667			206,714			84,288
(Provision for) benefit from income taxes	(4,157		)	(3,119		)	2,129			(11,436		)	(2,715		)
Net Income	41,835			66,121			68,796			195,278			81,573
Net income attributable to noncontrolling interests	(496		)	(83		)	(302		)	(2,015		)	(4,225		)
Net Income Attributable to W. P. Carey	$	41,339		$	66,038		$	68,494		$	193,263		$	77,348
Basic Earnings Per Share	$	0.24		$	0.39		$	0.41		$	1.33		$	0.71
Diluted Earnings Per Share	$	0.24		$	0.38		$	0.41		$	1.33		$	0.71
Weighted-Average Shares Outstanding
Basic	172,235,066			171,304,112			167,234,121			145,480,858			108,073,969
Diluted	172,486,506			171,490,625			167,434,740			145,716,583			108,283,666
Dividends Declared Per Share	$	1.036		$	1.034		$	1.032		$	1.030		$	1.025

________

(a) The subadvisors for CWI 1, CWI 2 and CPA:18 – Global (for multi-family properties) earn a percentage of gross fees recorded, which we account for as an expense and are recorded as Subadvisor fees in our consolidated statements of income. The amounts paid to the subadvisors are the differences between gross and net fees. During 2018, CPA:18 – Global sold five of its six multi-family properties (it sold the remaining multi-family property in January 2019 and we terminated the related subadvisory agreements).

(b) Amounts are primarily comprised of costs incurred in connection with the CPA:17 Merger.

(c) Amount for the three months ended September 30, 2019 is primarily comprised of realized gains on foreign currency exchange derivatives of $4.9 million, loss on extinguishment of debt of $(10.6) million, interest earned from cash in bank and on loans to affiliates of $1.1 million and net losses on foreign currency transactions of $(7.6) million.

(d) Amount for the three months ended September 30, 2019 represents a loss recognized on the purchase of the remaining interest in an investment from CPA:17 in the CPA:17 Merger, which we had previously accounted for under the equity method. We recognized this loss because we identified certain measurement period adjustments during the third quarter of 2019 that impacted the provisional accounting for this investment.

(e) Amount for the three months ended December 31, 2018 includes a gain of $18.8 million recognized on the purchase of the remaining interests in six investments from CPA:17 – Global in the CPA:17 Merger, which we had previously accounted for under the equity method. Amount for the three months ended December 31, 2018 also includes a gain of $29.0 million recognized on our previously held interest in shares of CPA:17 – Global common stock in connection with the CPA:17 Merger.

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W. P. Carey Inc.

Financial Results – Third Quarter 2019

Statements of Income, Real Estate – Last Five Quarters

In thousands, except share and per share amounts.

	Three Months Ended
	Sep. 30, 2019			Jun. 30, 2019			Mar. 31, 2019			Dec. 31, 2018			Sep. 30, 2018
Revenues
Lease revenues	$	278,839		$	269,802		$	262,939		$	233,632		$	173,067
Lease termination income and other	14,377			6,304			3,270			2,952			1,981
Operating property revenues	9,538			15,436			15,996			11,707			4,282
	302,754			291,542			282,205			248,291			179,330
Operating Expenses
Depreciation and amortization	108,573			112,666			111,413			92,330			66,837
Impairment charges	25,781			—			—			—			—
Reimbursable tenant costs	15,611			13,917			13,171			10,145			5,979
General and administrative	13,973			15,001			15,188			13,197			11,349
Property expenses, excluding reimbursable tenant costs	10,377			9,915			9,912			8,319			4,898
Operating property expenses	8,547			10,874			10,594			7,844			3,055
Stock-based compensation expense	3,435			3,482			2,800			2,774			1,380
Merger and other expenses (a)	70			696			146			37,098			1,673
	186,367			166,551			163,224			171,707			95,171
Other Income and Expenses
Interest expense	(58,626		)	(59,719		)	(61,313		)	(57,250		)	(41,740		)
Other gains and (losses)	(12,938		)	(1,362		)	970			15,075			8,197
(Loss) gain on change in control of interests (b) (c)	(8,416		)	—			—			18,792			—
Equity in earnings (losses) of equity method investments in real estate	578			230			(78		)	1,755			4,699
(Gain) loss on sale of real estate, net	71			(362		)	933			99,618			343
	(79,331		)	(61,213		)	(59,488		)	77,990			(28,501		)
Income before income taxes	37,056			63,778			59,493			154,574			55,658
Provision for income taxes	(3,511		)	(3,019		)	(6,159		)	(948		)	(424		)
Net Income from Real Estate	33,545			60,759			53,334			153,626			55,234
Net loss (income) attributable to noncontrolling interests	11			9			74			(2,015		)	(4,225		)
Net Income from Real Estate Attributable to W. P. Carey	$	33,556		$	60,768		$	53,408		$	151,611		$	51,009
Basic Earnings Per Share	$	0.19		$	0.36		$	0.32		$	1.04		$	0.47
Diluted Earnings Per Share	$	0.19		$	0.35		$	0.32		$	1.04		$	0.47
Weighted-Average Shares Outstanding
Basic	172,235,066			171,304,112			167,234,121			145,480,858			108,073,969
Diluted	172,486,506			171,490,625			167,434,740			145,716,583			108,283,666

________

(a) Amounts are primarily comprised of costs incurred in connection with the CPA:17 Merger.

(b) Amount for the three months ended September 30, 2019 represents a loss recognized on the purchase of the remaining interest in an investment from CPA:17 in the CPA:17 Merger, which we had previously accounted for under the equity method. We recognized this loss because we identified certain measurement period adjustments during the third quarter of 2019 that impacted the provisional accounting for this investment.

(c) Amount for the three months ended December 31, 2018 represents a gain recognized on the purchase of the remaining interests in six investments from CPA:17 – Global in the CPA:17 Merger, which we had previously accounted for under the equity method.

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W. P. Carey Inc.

Financial Results – Third Quarter 2019

Statements of Income, Investment Management – Last Five Quarters

In thousands, except share and per share amounts.

	Three Months Ended
	Sep. 30, 2019			Jun. 30, 2019			Mar. 31, 2019			Dec. 31, 2018			Sep. 30, 2018
Revenues
Asset management revenue	$	9,878		$	9,790		$	9,732		$	11,954		$	17,349
Reimbursable costs from affiliates	4,786			3,821			3,868			5,042			6,042
Structuring and other advisory revenue	587			58			2,518			8,108			6,663
	15,251			13,669			16,118			25,104			30,054
Operating Expenses
Reimbursable costs from affiliates	4,786			3,821			3,868			5,042			6,042
General and administrative	3,237			4,728			6,097			4,252			4,514
Subadvisor fees (a)	1,763			1,650			2,202			2,226			3,127
Stock-based compensation expense	1,312			1,454			1,365			1,128			1,095
Depreciation and amortization	944			966			966			991			988
	12,042			12,619			14,498			13,639			15,766
Other Income and Expenses
Equity in earnings of equity method investments in the Managed Programs	5,191			3,721			5,569			13,513			13,664
Other gains and (losses)	536			691			(15		)	(1,860		)	678
Gain on change in control of interests (b)	—			—			—			29,022			—
	5,727			4,412			5,554			40,675			14,342
Income before income taxes	8,936			5,462			7,174			52,140			28,630
(Provision for) benefit from income taxes	(646		)	(100		)	8,288			(10,488		)	(2,291		)
Net Income from Investment Management	8,290			5,362			15,462			41,652			26,339
Net income attributable to noncontrolling interests	(507		)	(92		)	(376		)	—			—
Net Income from Investment Management Attributable to W. P. Carey	$	7,783		$	5,270		$	15,086		$	41,652		$	26,339
Basic Earnings Per Share	$	0.05		$	0.03		$	0.09		$	0.29		$	0.24
Diluted Earnings Per Share	$	0.05		$	0.03		$	0.09		$	0.29		$	0.24
Weighted-Average Shares Outstanding
Basic	172,235,066			171,304,112			167,234,121			145,480,858			108,073,969
Diluted	172,486,506			171,490,625			167,434,740			145,716,583			108,283,666

________

(a) The subadvisors for CWI 1, CWI 2 and CPA:18 – Global (for multi-family properties) earn a percentage of gross fees recorded, which we account for as an expense and are recorded as Subadvisor fees in our consolidated statements of income. The amounts paid to the subadvisors are the differences between gross and net fees. During 2018, CPA:18 – Global sold five of its six multi-family properties (it sold the remaining multi-family property in January 2019 and we terminated the related subadvisory agreements).

(b) Amount for the three months ended December 31, 2018 represents a gain recognized on our previously held interest in shares of CPA:17 – Global common stock in connection with the CPA:17 Merger.

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W. P. Carey Inc.

Financial Results – Third Quarter 2019

FFO and AFFO, Consolidated – Last Five Quarters

In thousands, except share and per share amounts.

	Three Months Ended
	Sep. 30, 2019			Jun. 30, 2019			Mar. 31, 2019			Dec. 31, 2018			Sep. 30, 2018
Net income attributable to W. P. Carey	$	41,339		$	66,038		$	68,494		$	193,263		$	77,348
Adjustments:
Depreciation and amortization of real property	108,279			112,360			111,103			92,018			66,493
Impairment charges	25,781			—			—			—			—
Loss (gain) on change in control of interests (a) (b)	8,416			—			—			(47,814		)	—
(Gain) loss on sale of real estate, net	(71		)	362			(933		)	(99,618		)	(343		)
Proportionate share of adjustments to equity in net income of partially owned entities (c)	4,210			4,489			4,424			3,225			(651		)
Proportionate share of adjustments for noncontrolling interests (d)	(4		)	(31		)	(30		)	(762		)	(2,693		)
Total adjustments	146,611			117,180			114,564			(52,951		)	62,806
FFO (as defined by NAREIT) Attributable to W. P. Carey (e)	187,950			183,218			183,058			140,312			140,154
Adjustments:
Other (gains) and losses (f)	18,618			5,724			4,930			(9,001		)	(5,148		)
Above- and below-market rent intangible lease amortization, net	14,969			16,450			15,927			14,985			13,224
Straight-line and other rent adjustments	(6,370		)	(7,975		)	(6,258		)	(6,096		)	(3,431		)
Stock-based compensation	4,747			4,936			4,165			3,902			2,475
Amortization of deferred financing costs	2,991			2,774			2,724			2,572			1,901
Tax (benefit) expense – deferred and other (g)	(1,039		)	(933		)	(4,928		)	6,288			3,918
Other amortization and non-cash items	379			1,706			567			468			467
Merger and other expenses (h)	70			696			146			37,098			1,673
Proportionate share of adjustments to equity in net income of partially owned entities (c)	1,920			1,876			1,461			3,192			3,860
Proportionate share of adjustments for noncontrolling interests (d)	(12		)	(7		)	(25		)	140			664
Total adjustments	36,273			25,247			18,709			53,548			19,603
AFFO Attributable to W. P. Carey (e)	$	224,223		$	208,465		$	201,767		$	193,860		$	159,757
Summary
FFO (as defined by NAREIT) attributable to W. P. Carey (e)	$	187,950		$	183,218		$	183,058		$	140,312		$	140,154
FFO (as defined by NAREIT) attributable to W. P. Carey    per diluted share (e)	$	1.09		$	1.07		$	1.09		$	0.96		$	1.29
AFFO attributable to W. P. Carey (e)	$	224,223		$	208,465		$	201,767		$	193,860		$	159,757
AFFO attributable to W. P. Carey per diluted share (e)	$	1.30		$	1.22		$	1.21		$	1.33		$	1.48
Diluted weighted-average shares outstanding	172,486,506			171,490,625			167,434,740			145,716,583			108,283,666

________

(a) Amount for the three months ended September 30, 2019 represents a loss recognized on the purchase of the remaining interest in a real estate investment from CPA:17 in the CPA:17 Merger, which we had previously accounted for under the equity method. We recognized this loss because we identified certain measurement period adjustments during the third quarter of 2019 that impacted the provisional accounting for this investment.

(b) Amount for the three months ended December 31, 2018 includes a gain recognized on the purchase of the remaining interests in six investments from CPA:17 – Global in the CPA:17 Merger, which we had previously accounted for under the equity method. Amount for the three months ended December 31, 2018 also includes a gain recognized on our previously held interest in shares of CPA:17 – Global common stock in connection with the CPA:17 Merger.

(c) Equity income, including amounts that are not typically recognized for FFO and AFFO, is recognized within Equity in earnings of equity method investments in the Managed Programs and real estate on the consolidated statements of income. This represents adjustments to equity income to reflect FFO and AFFO on a pro rata basis.

(d) Adjustments disclosed elsewhere in this reconciliation are on a consolidated basis. This adjustment reflects our FFO or AFFO on a pro rata basis.

(e) FFO and AFFO are non-GAAP measures. See the Terms and Definitions section in the Appendix for a description of our non-GAAP measures.

(f) Amount for the three months ended September 30, 2019 is primarily comprised of unrealized losses on derivatives of $(0.4) million, losses from foreign currency movements of $(7.6) million and loss on extinguishment of debt of $(10.6) million. Beginning in the second quarter of 2019, we aggregated (gain) loss on extinguishment of debt and realized (gains) losses on foreign currency (both of which were previously disclosed as separate AFFO adjustment line items), as well as certain other adjustments, within this line item, which is comprised of adjustments related to Other gains and (losses) on our consolidated statements of income. Prior period amounts have been reclassified to conform to the current period presentation.

(g) Amount for the three months ended March 31, 2019 includes a current tax benefit and amount for the three months ended December 31, 2018 includes a current tax expense, both of which are excluded from AFFO as they were incurred as a result of the CPA:17 Merger.

(h) Amounts are primarily comprised of costs incurred in connection with the CPA:17 Merger.

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W. P. Carey Inc.

Financial Results – Third Quarter 2019

FFO and AFFO, Real Estate – Last Five Quarters

In thousands, except share and per share amounts.

	Three Months Ended
	Sep. 30, 2019			Jun. 30, 2019			Mar. 31, 2019			Dec. 31, 2018			Sep. 30, 2018
Net income from Real Estate attributable to W. P. Carey	$	33,556		$	60,768		$	53,408		$	151,611		$	51,009
Adjustments:
Depreciation and amortization of real property	108,279			112,360			111,103			92,018			66,493
Impairment charges	25,781			—			—			—			—
Loss (gain) on change in control of interests (a) (b)	8,416			—			—			(18,792		)	—
(Gain) loss on sale of real estate, net	(71		)	362			(933		)	(99,618		)	(343		)
Proportionate share of adjustments to equity in net income of partially owned entities (c)	4,210			4,489			4,424			3,225			(651		)
Proportionate share of adjustments for noncontrolling interests (d)	(4		)	(31		)	(30		)	(762		)	(2,693		)
Total adjustments	146,611			117,180			114,564			(23,929		)	62,806
FFO (as defined by NAREIT) Attributable to W. P. Carey – Real Estate (e)	180,167			177,948			167,972			127,682			113,815
Adjustments:
Other (gains) and losses (f)	18,956			5,888			3,929			(11,269		)	(5,084		)
Above- and below-market rent intangible lease amortization, net	14,969			16,450			15,927			14,985			13,224
Straight-line and other rent adjustments	(6,370		)	(7,975		)	(6,258		)	(6,096		)	(3,431		)
Stock-based compensation	3,435			3,482			2,800			2,774			1,380
Amortization of deferred financing costs	2,991			2,774			2,724			2,572			1,901
Tax (benefit) expense – deferred and other	(1,414		)	(853		)	490			(3,949		)	(3,556		)
Other amortization and non-cash items	180			1,510			502			260			64
Merger and other expenses (g)	70			696			146			37,098			1,673
Proportionate share of adjustments to equity in net income of partially owned entities (c)	(113		)	(89		)	115			(260		)	519
Proportionate share of adjustments for noncontrolling interests (d)	(12		)	(7		)	(25		)	140			664
Total adjustments	32,692			21,876			20,350			36,255			7,354
AFFO Attributable to W. P. Carey – Real Estate(e)	$	212,859		$	199,824		$	188,322		$	163,937		$	121,169
Summary
FFO (as defined by NAREIT) attributable to W. P. Carey – Real Estate (e)	$	180,167		$	177,948		$	167,972		$	127,682		$	113,815
FFO (as defined by NAREIT) attributable to W. P. Carey per diluted share – Real Estate (e)	$	1.04		$	1.04		$	1.00		$	0.87		$	1.05
AFFO attributable to W. P. Carey – Real Estate (e)	$	212,859		$	199,824		$	188,322		$	163,937		$	121,169
AFFO attributable to W. P. Carey per diluted share – Real Estate (e)	$	1.23		$	1.17		$	1.13		$	1.12		$	1.12
Diluted weighted-average shares outstanding	172,486,506			171,490,625			167,434,740			145,716,583			108,283,666

________

(a) Amount for the three months ended September 30, 2019 represents a loss recognized on the purchase of the remaining interest in a real estate investment from CPA:17 in the CPA:17 Merger, which we had previously accounted for under the equity method. We recognized this loss because we identified certain measurement period adjustments during the third quarter of 2019 that impacted the provisional accounting for this investment.

(b) Amount for the three months December 31, 2018 represents a gain recognized on the purchase of the remaining interests in six investments from CPA:17 – Global in the CPA:17 Merger, which we had previously accounted for under the equity method.

(c) Equity income, including amounts that are not typically recognized for FFO and AFFO, is recognized within Equity in earnings of equity method investments in the Managed Programs and real estate on the consolidated statements of income. This represents adjustments to equity income to reflect FFO and AFFO on a pro rata basis.

(d) Adjustments disclosed elsewhere in this reconciliation are on a consolidated basis. This adjustment reflects our FFO or AFFO on a pro rata basis.

(e) FFO and AFFO are non-GAAP measures. See the Terms and Definitions section in the Appendix for a description of our non-GAAP measures.

(f) Amount for the three months ended September 30, 2019 is primarily comprised of unrealized losses on derivatives of $(0.4) million, losses from foreign currency movements of $(7.5) million and loss on extinguishment of debt of $(10.6) million. Beginning in the second quarter of 2019, we aggregated (gain) loss on extinguishment of debt and realized (gains) losses on foreign currency (both of which were previously disclosed as separate AFFO adjustment line items), as well as certain other adjustments, within this line item, which is comprised of adjustments related to Other gains and (losses) on our consolidated statements of income. Prior period amounts have been reclassified to conform to the current period presentation.

(g) Amounts are primarily comprised of costs incurred in connection with the CPA:17 Merger.

Investing for the long run^TM | 10

W. P. Carey Inc.

Financial Results – Third Quarter 2019

FFO and AFFO, Investment Management – Last Five Quarters

In thousands, except share and per share amounts.

	Three Months Ended
	Sep. 30, 2019			Jun. 30, 2019			Mar. 31, 2019			Dec. 31, 2018			Sep. 30, 2018
Net income from Investment Management attributable to W. P. Carey	$	7,783		$	5,270		$	15,086		$	41,652		$	26,339
Adjustments:
Gain on change in control of interests (a)	—			—			—			(29,022		)	—
Total adjustments	—			—			—			(29,022		)	—
FFO (as defined by NAREIT) Attributable to W. P. Carey – Investment Management (b)	7,783			5,270			15,086			12,630			26,339
Adjustments:
Stock-based compensation	1,312			1,454			1,365			1,128			1,095
Tax expense (benefit) – deferred and other (c)	375			(80		)	(5,418		)	10,237			7,474
Other (gains) and losses (d)	(338		)	(164		)	1,001			2,268			(64		)
Other amortization and non-cash items	199			196			65			208			403
Proportionate share of adjustments to equity in net income of partially owned entities (e)	2,033			1,965			1,346			3,452			3,341
Total adjustments	3,581			3,371			(1,641		)	17,293			12,249
AFFO Attributable to W. P. Carey – Investment Management (b)	$	11,364		$	8,641		$	13,445		$	29,923		$	38,588
Summary
FFO (as defined by NAREIT) attributable to W. P. Carey – Investment Management (b)	$	7,783		$	5,270		$	15,086		$	12,630		$	26,339
FFO (as defined by NAREIT) attributable to W. P. Carey per diluted share – Investment Management (b)	$	0.05		$	0.03		$	0.09		$	0.09		$	0.24
AFFO attributable to W. P. Carey – Investment Management (b)	$	11,364		$	8,641		$	13,445		$	29,923		$	38,588
AFFO attributable to W. P. Carey per diluted share – Investment Management (b)	$	0.07		$	0.05		$	0.08		$	0.21		$	0.36
Diluted weighted-average shares outstanding	172,486,506			171,490,625			167,434,740			145,716,583			108,283,666

________

(a) Amount for the three months ended December 31, 2018 represents a gain recognized on our previously held interest in shares of CPA:17 – Global common stock in connection with the CPA:17 Merger.

(b) FFO and AFFO are non-GAAP measures. See the Terms and Definitions section in the Appendix for a description of our non-GAAP measures.

(c) Amount for the three months ended March 31, 2019 includes a current tax benefit and amount for the three months ended December 31, 2018 includes a current tax expense, both of which are excluded from AFFO as they were incurred as a result of the CPA:17 Merger.

(d) Beginning in the second quarter of 2019, we aggregated realized (gains) losses on foreign currency (which was previously disclosed as a separate AFFO adjustment line item) and certain other adjustments within this line item, which is comprised of adjustments related to Other gains and (losses) on our consolidated statements of income. Prior period amounts have been reclassified to conform to the current period presentation.

(e) Equity income, including amounts that are not typically recognized for FFO and AFFO, is recognized within Equity in earnings of equity method investments in the Managed Programs and real estate on the consolidated statements of income. This represents adjustments to equity income to reflect FFO and AFFO on a pro rata basis.

Investing for the long run^TM | 11

W. P. Carey Inc.

Financial Results – Third Quarter 2019

Elements of Pro Rata Statement of Income and AFFO Adjustments

In thousands. For the three months ended September 30, 2019.

We believe that the table below is useful for investors to help them better understand our business by illustrating the impact of each of our AFFO adjustments on our GAAP statement of income line items. This presentation is not an alternative to the GAAP statement of income, nor is AFFO an alternative to net income as determined by GAAP.

	Equity Investments (a)			Noncontrolling Interests (b)			AFFO Adjustments
Revenues
Real Estate:
Lease revenues	$	5,908		$	(30	)	$	8,406		(c)
Lease termination income and other	168			(1		)	—
Operating property revenues:
Hotel revenues	—			—			—
Self-storage revenues	1,220			—			—
Investment Management:
Asset management revenue	—			—			—
Reimbursable costs from affiliates	—			—			—
Structuring and other advisory revenue	—			—			—
Operating Expenses
Depreciation and amortization	3,884			(4		)	(112,357		)	(d)
Impairment charges	—			—			(25,781		)	(e)
General and administrative	5			—			—
Reimbursable tenant costs	580			(8		)	(170		)
Property expenses, excluding reimbursable tenant costs	217			—			(380		)	(e)
Operating property expenses:
Hotel expenses	—			—			—
Self-storage expenses	732			—			(85		)
Reimbursable costs from affiliates	—			—			—
Stock-based compensation expense	—			—			(4,747		)	(e)
Subadvisor fees (f)	—			—			—
Merger and other expenses	—			—			(70		)	(g)
Other Income and Expenses
Interest expense	(1,405		)	—			2,754			(h)
Other gains and (losses)	8			5			18,598			(i)
Loss on change in control of interests	—			—			8,416			(j)
Equity in earnings of equity method investments in the Managed Programs and real estate:
Income related to our general partnership interests in the Managed REITs	—			(507		)	—
Joint ventures	(555		)	—			286			(k)
Income related to our ownership in the Managed Programs	—			—			2,033			(l)
Gain on sale of real estate, net	—			—			(71		)
Provision for income taxes	74			—			(1,128		)	(m)
Net income attributable to noncontrolling interests	—			521			—

________

(a) Represents the break-out by line item of amounts recorded in Equity in earnings of equity method investments in the Managed Programs and real estate.

(b) Represents the break-out by line item of amounts recorded in Net income attributable to noncontrolling interests.

(c) Represents the reversal of amortization of above- or below-market lease intangibles of $15.0 million and the elimination of non-cash amounts related to straight-line rent and other of $6.6 million.

(d) Adjustment is a non-cash adjustment excluding corporate depreciation and amortization.

(e) Adjustment to exclude a non-cash item.

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W. P. Carey Inc.

Financial Results – Third Quarter 2019

(f) The subadvisors for CWI 1 and CWI 2 earn a percentage of gross fees recorded, which we account for as an expense and are recorded as Subadvisor fees in our consolidated statements of income. The amounts paid to the subadvisors are the differences between gross and net fees.

(g) Adjustment primarily to exclude costs incurred in connection with the CPA:17 Merger.

(h) Represents the elimination of non-cash components of interest expense, such as deferred financing costs, debt premiums and discounts.

(i) Represents eliminations of gains (losses) related to the extinguishment of debt, unrealized foreign currency gains (losses), unrealized gains (losses) on derivatives, gains (losses) on marketable securities and other items.

(j) Represents a loss recognized on the purchase of the remaining interest in an investment from CPA:17 in the CPA:17 Merger, which we had previously accounted for under the equity method. We recognized this loss because we identified certain measurement period adjustments during the third quarter of 2019 that impacted the provisional accounting for this investment.

(k) Adjustments to include our pro rata share of AFFO adjustments from equity investments.

(l) Represents Adjusted MFFO from the Managed Programs in place of our pro rata share of net income from our ownership in the Managed Programs. Adjusted MFFO is defined as MFFO adjusted for deferred taxes and excluding the adjustment for realized gains and losses on hedges.

(m) Primarily represents the elimination of deferred taxes.

Investing for the long run^TM | 13

W. P. Carey Inc.

Financial Results – Third Quarter 2019

Capital Expenditures

In thousands. For the three months ended September 30, 2019.

Tenant Improvements and Leasing Costs
Tenant improvements	$	2,415
Leasing costs	311
Tenant Improvements and Leasing Costs	2,726
Maintenance Capital Expenditures
Net-lease properties	690
Operating properties	280
Maintenance Capital Expenditures	970
Total: Tenant Improvements and Leasing Costs, and Maintenance Capital Expenditures	$	3,696
Non-Maintenance Capital Expenditures
Net-lease properties	$	162
Operating properties	600
Non-Maintenance Capital Expenditures	$	762
Pre-Development Capital Expenditures
Net-lease properties	$	469
Operating properties	—
Pre-Development Capital Expenditures	$	469

Investing for the long run^TM | 14

W. P. Carey Inc.

Balance Sheets and Capitalization

Third Quarter 2019

Investing for the long run^TM | 15

W. P. Carey Inc.

Balance Sheets and Capitalization –Third Quarter 2019

Consolidated Balance Sheets

In thousands, except share and per share amounts.

	Sep. 30, 2019			Dec. 31, 2018
Assets
Investments in real estate:
Land, buildings and improvements (a)	$	9,439,301		$	9,251,396
Net investments in direct financing leases	1,176,301			1,306,215
In-place lease intangible assets and other	2,111,601			2,009,628
Above-market rent intangible assets	911,940			925,797
Investments in real estate	13,639,143			13,493,036
Accumulated depreciation and amortization (b)	(1,914,233		)	(1,564,182		)
Assets held for sale, net (c)	104,013			—
Net investments in real estate	11,828,923			11,928,854
Equity investments in the Managed Programs and real estate (d)	315,641			329,248
Cash and cash equivalents	331,687			217,644
Due from affiliates	86,400			74,842
Other assets, net	590,124			711,507
Goodwill	930,864			920,944
Total assets	$	14,083,639		$	14,183,039
Liabilities and Equity
Debt:
Senior unsecured notes, net	$	4,302,892		$	3,554,470
Unsecured revolving credit facility	22,410			91,563
Non-recourse mortgages, net	1,771,887			2,732,658
Debt, net	6,097,189			6,378,691
Accounts payable, accrued expenses and other liabilities	470,540			403,896
Below-market rent and other intangible liabilities, net	207,655			225,128
Deferred income taxes	163,036			173,115
Dividends payable	180,797			172,154
Total liabilities	7,119,217			7,352,984
Preferred stock, $0.001 par value, 50,000,000 shares authorized; none issued	—			—
Common stock, $0.001 par value, 450,000,000 shares authorized; 172,276,402 and 165,279,642 shares, respectively, issued and outstanding	172			165
Additional paid-in capital	8,712,441			8,187,335
Distributions in excess of accumulated earnings	(1,506,795		)	(1,143,992		)
Deferred compensation obligation	37,263			35,766
Accumulated other comprehensive loss	(284,975		)	(254,996		)
Total stockholders' equity	6,958,106			6,824,278
Noncontrolling interests	6,316			5,777
Total equity	6,964,422			6,830,055
Total liabilities and equity	$	14,083,639		$	14,183,039

________

(a) Includes $83.0 million and $470.7 million of amounts attributable to operating properties as of September 30, 2019 and December 31, 2018, respectively.

(b) Includes $895.4 million and $734.8 million of accumulated depreciation on buildings and improvements as of September 30, 2019 and December 31, 2018, respectively, and $1,018.9 million and $829.4 million of accumulated amortization on lease intangibles as of September 30, 2019 and December 31, 2018, respectively.

(c) At September 30, 2019, we had one hotel operating property classified as Assets held for sale, net.

(d) Our equity investments in real estate joint ventures totaled $191.7 million and $221.7 million as of September 30, 2019 and December 31, 2018, respectively. Our equity investments in the Managed Programs totaled $124.0 million and $107.6 million as of September 30, 2019 and December 31, 2018, respectively.

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W. P. Carey Inc.

Balance Sheets and Capitalization –Third Quarter 2019

Capitalization

In thousands, except share and per share amounts. As of September 30, 2019.

Description	Shares	Share Price		Market Value
Equity
Common equity	172,276,402	$	89.50	$	15,418,738
Preferred equity				—
Total Equity Market Capitalization				15,418,738
				Outstanding Balance (a)
Pro Rata Debt
Non-recourse mortgages				1,983,868
Unsecured revolving credit facility (due February 22, 2021)				22,410
Senior unsecured notes:
Due January 20, 2023 (EUR)				544,450
Due April 1, 2024 (USD)				500,000
Due July 19, 2024 (EUR)				544,450
Due February 1, 2025 (USD)				450,000
Due April 9, 2026 (EUR)				544,450
Due October 1, 2026 (USD)				350,000
Due April 15, 2027 (EUR)				544,450
Due April 15, 2028 (EUR)				544,450
Due July 15, 2029 (USD)				325,000
Total Pro Rata Debt				6,353,528
Total Capitalization				$	21,772,266

________

(a) Excludes unamortized discount, net totaling $42.0 million and unamortized deferred financing costs totaling $24.4 million as of September 30, 2019.

Investing for the long run^TM | 17

W. P. Carey Inc.

Balance Sheets and Capitalization –Third Quarter 2019

Debt Overview

Dollars in thousands. Pro rata. As of September 30, 2019.

	USD-Denominated				EUR-Denominated				Other Currencies (a)				Total
													Outstanding Balance
	Out-standing Balance (in USD)		Weigh-ted Avg. Interest Rate		Out-standing Balance (in USD)		Weigh-ted Avg. Interest Rate		Out-standing Balance (in USD)		Weigh-ted Avg. Interest Rate		Amount (in USD)		% of Total		Weigh-ted Avg. Interest Rate		Weigh-ted Avg. Maturity (Years)
Non-Recourse Debt (b) (c)
Fixed	$	1,218,827	5.4	%	$	179,610	3.7	%	$	28,670	4.8	%	$	1,427,107	22.5	%	5.2	%	3.5
Variable:
Swapped	84,439		4.7	%	140,645		2.2	%	—		—	%	225,084		3.5	%	3.2	%	3.8
Floating	96,578		3.9	%	54,445		1.3	%	15,720		2.7	%	166,743		2.6	%	2.9	%	1.5
Capped	—		—	%	164,934		1.9	%	—		—	%	164,934		2.6	%	1.9	%	2.3
Total Pro Rata Non-Recourse Debt	1,399,844		5.3	%	539,634		2.5	%	44,390		4.0	%	1,983,868		31.2	%	4.5	%	3.3
Recourse Debt (b) (c)
Fixed – Senior unsecured notes:
Due January 20, 2023	—		—	%	544,450		2.0	%	—		—	%	544,450		8.6	%	2.0	%	3.3
Due April 1, 2024	500,000		4.6	%	—		—	%	—		—	%	500,000		7.9	%	4.6	%	4.5
Due July 19, 2024	—		—	%	544,450		2.3	%	—		—	%	544,450		8.6	%	2.3	%	4.8
Due February 1, 2025	450,000		4.0	%	—		—	%	—		—	%	450,000		7.0	%	4.0	%	5.3
Due April 9, 2026	—		—	%	544,450		2.3	%	—		—	%	544,450		8.6	%	2.3	%	6.5
Due October 1, 2026	350,000		4.3	%	—		—	%	—		—	%	350,000		5.4	%	4.3	%	7.0
Due April 15, 2027	—		—	%	544,450		2.1	%	—		—	%	544,450		8.6	%	2.1	%	7.5
Due April 15, 2028	—		—	%	544,450		1.4	%	—		—	%	544,450		8.6	%	1.4	%	8.5
Due July 15, 2029	325,000		3.9	%	—		—	%	—		—	%	325,000		5.1	%	3.9	%	9.8
Total Senior Unsecured Notes	1,625,000		4.2	%	2,722,250		2.0	%	—		—	%	4,347,250		68.4	%	2.8	%	6.2
Variable:
Unsecured revolving credit facility (due February 22, 2021) (d)	—		—	%	—		—	%	22,410		1.0	%	22,410		0.4	%	1.0	%	1.4
Total Recourse Debt	1,625,000		4.2	%	2,722,250		2.0	%	22,410		1.0	%	4,369,660		68.8	%	2.8	%	6.2
Total Pro Rata Debt Outstanding	$	3,024,844	4.7	%	$	3,261,884	2.1	%	$	66,800	3.0	%	$	6,353,528	100.0	%	3.3	%	5.3

________

(a) Other currencies include debt denominated in British pound sterling, Norwegian krone and Japanese yen.

(b) Debt data is presented on a pro rata basis. See the Terms and Definitions section in the Appendix for a description of pro rata.

(c) Excludes unamortized discount, net totaling $42.0 million and unamortized deferred financing costs totaling $24.4 million as of September 30, 2019.

(d) Depending on the currency, we incurred interest at either London Interbank Offered Rate (“LIBOR”), Euro Interbank Offered Rate (“EURIBOR”), or Japanese yen (“JPY”) LIBOR plus 1.00% on our Unsecured revolving credit facility. EURIBOR and JPY LIBOR have a floor of 0.00% under the terms of our credit agreement. Availability under our Unsecured revolving credit facility was $1.5 billion as of September 30, 2019. The aggregate principal amount (of revolving and term loans) available under our credit agreement may be increased up to an amount not to exceed the U.S. dollar equivalent of $2.35 billion.

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W. P. Carey Inc.

Balance Sheets and Capitalization –Third Quarter 2019

Debt Maturity

Dollars in thousands. Pro rata. As of September 30, 2019.

	Real Estate			Debt
	Number of Properties (a)			Weighted- Average Interest Rate				Total Outstanding Balance (b) (c)		% of Total Outstanding Balance
Year of Maturity		ABR (a)				Balloon
Non-Recourse Debt
Remaining 2019	—	$	—	—	%	$	—	$	—	—	%
2020	14	48,933		4.5	%	220,195		228,058		3.6	%
2021	72	70,491		3.8	%	371,973		404,902		6.4	%
2022	37	78,918		4.8	%	418,177		448,332		7.0	%
2023	40	71,075		4.1	%	351,359		400,016		6.3	%
2024	48	44,195		4.0	%	176,111		226,796		3.6	%
2025	23	20,757		6.2	%	137,824		176,783		2.8	%
2026	9	12,400		6.1	%	31,535		54,226		0.8	%
2027	2	4,048		4.7	%	21,450		30,635		0.5	%
2028	1	3,042		7.0	%	—		10,449		0.1	%
2031	1	938		6.0	%	—		3,671		0.1	%
Total Pro Rata Non-Recourse Debt	247	$	354,797	4.5	%	$	1,728,624	1,983,868		31.2	%
Recourse Debt
Fixed – Senior unsecured notes:
Due January 20, 2023 (EUR)				2.0	%			544,450		8.6	%
Due April 1, 2024 (USD)				4.6	%			500,000		7.9	%
Due July 19, 2024 (EUR)				2.3	%			544,450		8.6	%
Due February 1, 2025 (USD)				4.0	%			450,000		7.0	%
Due April 9, 2026 (EUR)				2.3	%			544,450		8.6	%
Due October 1, 2026 (USD)				4.3	%			350,000		5.4	%
Due April 15, 2027 (EUR)				2.1	%			544,450		8.6	%
Due April 15, 2028 (EUR)				1.4	%			544,450		8.6	%
Due July 15, 2029 (USD)				3.9	%			325,000		5.1	%
Total Senior Unsecured Notes				2.8	%			4,347,250		68.4	%
Variable:
Unsecured revolving credit facility (due February 22, 2021) (d)				1.0	%			22,410		0.4	%
Total Recourse Debt				2.8	%			4,369,660		68.8	%
Total Pro Rata Debt Outstanding				3.3	%			$	6,353,528	100.0	%

________

(a) Represents the number of properties and ABR associated with the debt that is maturing in each respective year.

(b) Debt maturity data is presented on a pro rata basis. See the Terms and Definitions section in the Appendix for a description of pro rata. Total outstanding balance includes balloon payments and scheduled amortization for our non-recourse debt.

(c) Excludes unamortized discount, net totaling $42.0 million and unamortized deferred financing costs totaling $24.4 million as of September 30, 2019.

(d) Depending on the currency, we incurred interest at either LIBOR, EURIBOR, or JPY LIBOR plus 1.00% on our Unsecured revolving credit facility. EURIBOR and JPY LIBOR have a floor of 0.00% under the terms of our credit agreement. Availability under our Unsecured revolving credit facility was $1.5 billion as of September 30, 2019. The aggregate principal amount (of revolving and term loans) available under our credit agreement may be increased up to an amount not to exceed the U.S. dollar equivalent of $2.35 billion.

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W. P. Carey Inc.

Balance Sheets and Capitalization –Third Quarter 2019

Senior Unsecured Notes

As of September 30, 2019.

Ratings

	Issuer / Corporate		Senior Unsecured Notes
Ratings Agency	Rating	Outlook	Rating
Moody's	Baa2	Stable	Baa2
Standard & Poor's	BBB	Positive	BBB

Senior Unsecured Note Covenants

The following is a summary of the key financial covenants for the Senior Unsecured Notes, along with our estimated calculations of our compliance with those covenants at the end of the period presented. These ratios are not measures of our liquidity or performance and serve only to demonstrate our ability to incur additional debt, as permitted by the covenants for the Senior Unsecured Notes.

Covenant	Metric	Required	As of Sep. 30, 2019
Limitation on the incurrence of debt	"Total Debt" / "Total Assets"	≤ 60%	39.0%
Limitation on the incurrence of secured debt	"Secured Debt" / "Total Assets"	≤ 40%	11.3%
Limitation on the incurrence of debt based on consolidated EBITDA to annual debt service charge	"Consolidated EBITDA" / "Annual Debt Service Charge"	≥ 1.5x	5.0x
Maintenance of unencumbered asset value	"Unencumbered Assets" / "Total Unsecured Debt"	≥ 150%	244.8%

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W. P. Carey Inc.

Real Estate

Third Quarter 2019

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W. P. Carey Inc.

Real Estate – Third Quarter 2019

Investment Activity – Capital Investment Projects ^(a)

Dollars in thousands. Pro rata.

		Primary Transaction Type	Property Type	Expected Completion Date	Estimated Change in Square Footage	Lease Term (Years)	Funded During Three Months Ended Sep. 30, 2019		Total Funded Through Sep. 30, 2019		Maximum Commitment
Tenant	Location										Remaining		Total
Orgill, Inc.	Kilgore, TX	Expansion	Warehouse	Q4 2019	328,707	25	$	8,281	$	8,281	$	5,719	$	14,000
Astellas US Holding, Inc. (b)	Westborough, MA	Redevelopment	Laboratory	Q4 2019	10,063	17	15,590		40,048		11,629		51,677
Gestamp Automocion, S.L.	McCalla, AL	Expansion	Industrial	Q4 2019	137,620	20	4,211		6,006		6,521		12,527
Danske Fragtmænd A/S (c) (d)	Hillerød, Denmark	Build-to-Suit	Warehouse	Q4 2019	53,282	20	—		—		8,906		8,906
Danske Fragtmænd A/S (c) (d)	Hammelev, Denmark	Build-to-Suit	Warehouse	Q4 2019	88,620	20	—		—		10,392		10,392
Rockwell Automation (c)	Katowice, Poland	Build-to-Suit	Industrial	Q4 2019	121,320	15	6,299		8,629		8,278		16,907
Expected Completion Date 2019 Total					739,612		34,381		62,964		51,445		114,409
Clayco, Inc.	St. Louis, MO	Renovation	Office	Q1 2020	N/A	15	—		—		4,000		4,000
Fresenius Medical Care Holdings, Inc. (d)	Knoxville, TN	Build-to-Suit	Warehouse	Q2 2020	614,069	20	—		—		68,008		68,008
Hilite Europe GmbH (c)	Marktheiden- feld, Germany	Expansion	Warehouse	Q2 2020	71,710	15	—		—		8,037		8,037
Hellweg Die Profi-Baumärkte GmbH & Co. KG (c)	Various, Germany	Renovation	Retail	Q3 2020	N/A	17	—		10,510		1,795		12,305
Cuisine Solutions, Inc.	San Antonio, TX	Build-to-Suit	Industrial	Q4 2020	290,000	25	12,913		12,913		62,087		75,000
Expected Completion Date 2020 Total					975,779		12,913		23,423		143,927		167,350
					1,715,391		$	47,294	$	86,387	$	195,372	$	281,759

________

(a) This schedule includes future estimates for which we can give no assurance as to timing or amounts. Completed capital investment projects are included in the Investment Activity – Acquisitions and Completed Capital Investment Projects section. Funding amounts exclude capitalized construction interest.

(b) This redevelopment project also includes renovations to the existing 250,813 square foot property.

(c) Commitment amounts are based on the applicable exchange rate at period end.

(d) Projects will be funded upon completion and are contingent on buildings being constructed according to our standards.

Investing for the long run^TM | 22

W. P. Carey Inc.

Real Estate–Third Quarter 2019

Investment Activity – Acquisitions and Completed Capital Investment Projects

Dollars in thousands. Pro rata. For the nine months ended September 30, 2019.

		Gross Investment Amount		Closing Date / Asset Completion Date	Property Type(s)	Gross Square Footage
Tenant / Lease Guarantor	Property Location(s)
Acquisitions
1Q19
University of Western States	Portland, OR	$	36,178	Feb-19	Education Facility	152,642
PPD Development, L.P.	Morrisville, NC	48,305		Mar-19	Office	219,812
Orgill, Inc.	Inwood, WV	37,565		Mar-19	Warehouse	763,371
Litehouse, Inc.	Hurricane, UT	49,283		Mar-19	Industrial	268,009
Amerifreight Systems, LLC	Bensenville, IL	16,642		Mar-19	Industrial	58,000
1Q19 Total		187,973				1,461,834
2Q19
Integrated Warehouse Solutions (2 properties)	Westerville, OH and North Wales, PA	10,237		May-19	Industrial	143,092
Electrical Components International, Inc. (8 properties)	United States (5 properties) and Mexico (3 properties)	24,487		May-19	Industrial	525,484
Badger Sportswear, LLC	Statesville, NC	18,755		Jun-19	Warehouse	300,910
Turkey Hill, LLC	Conestoga, PA	70,057		Jun-19	Industrial	412,428
2Q19 Total		123,536				1,381,914
3Q19
Wendorff (3 properties)	Hartford and Milwaukee, WI	30,132		Jul-19	Industrial	618,500
Trillium Holdings, Inc. (2 properties)	Brockville and Prescott, Canada	15,128		Jul-19	Industrial	286,000
Selecta Group B.V. (a)	Dordrecht, The Netherlands	16,429		Sep-19	Industrial	203,072
3Q19 Total		61,689				1,107,572
Year-to-Date Total		373,198				3,951,320

Completed Capital Investment Projects
1Q19
Greenyard Foods NV (a) (b)	Zabia Wola, Poland	5,580		Mar-19	Warehouse	72,154
Harbor Freight Tools USA, Inc. (b)	Dillon, SC	46,023		Mar-19	Warehouse	1,000,000
1Q19 Total		51,603				1,072,154
2Q19
Nippon Express Co., Ltd. (a)	Rotterdam, The Netherlands	20,051		May-19	Warehouse	353,368
Hellweg Die Profi-Baumärkte GmbH & Co. KG (4 properties) (a)	Various, Germany	5,582		May-19	Retail	N/A
Faurecia Legnica S. A. (a)	Legnica, Poland	6,000		Jun-19	Industrial	72,119
2Q19 Total		31,633				425,487
3Q19 (N/A)
Year-to-Date Total		83,236				1,497,641
Year-to-Date Total Acquisitions and Completed Capital Investment Projects		$	456,434			5,448,961

________

(a) Amount reflects the applicable exchange rate on the date of the transaction.

(b) These capital investment projects were acquired in the CPA:17 Merger on October 31, 2018. The gross investment amount includes amounts funded prior to the completion of the CPA:17 Merger.

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W. P. Carey Inc.

Real Estate–Third Quarter 2019

Investment Activity – Dispositions

Dollars in thousands. Pro rata. For the nine months ended September 30, 2019.

Tenant / Lease Guarantor	Property Location(s)	Gross Sale Price		Closing Date	Property Type(s)	Gross Square Footage
1Q19
Walgreens Co.	Concord, NC	$	4,961	Jan-19	Retail	14,560
1Q19 Total		4,961				14,560
2Q19
Civitas Media, LLC (4 properties)	Sedalia, MO; Lumberton and Mount Airy, NC; and Wilkes-Barre, PA	7,669		Apr-19	Industrial	144,918
Production Resource Group, Inc.	Las Vegas, NV	9,285		Jun-19	Warehouse	126,916
2Q19 Total		16,954				271,834
3Q19
Vacant	Rocky Mount, NC	3,225		Jul-19	Industrial	190,820
Vacant	Johnstown, PA	500		Aug-19	Retail	80,884
Vacant (a)	Slavonski Brod, Croatia	2,407		Aug-19	Retail	58,147
JGC Food Co., LLC	Nashville, TN	8,000		Sep-19	Industrial	184,727
3Q19 Total		14,132				514,578
Year-to-Date Total Dispositions		$	36,047			800,972

________

(a) Amount reflects the applicable exchange rate on the date of the transaction.

Investing for the long run^TM | 24

W. P. Carey Inc.

Real Estate –Third Quarter 2019

Joint Ventures

Dollars in thousands. As of September 30, 2019.

Joint Venture or JV (Principal Tenant)	JV Partnership		Consolidated				Pro Rata (a)
	Partner	WPC %	Debt Outstanding (b)		ABR		Debt Outstanding (c)		ABR
Unconsolidated Joint Ventures (Equity Method Investments) (d)
Kesko Senukai (e)	Third party	70.00%	$	115,988	$	13,462	$	81,192	$	9,424
State Farm Mutual Automobile Insurance Co.	CPA:18 – Global	50.00%	72,800		7,836		36,400		3,918
Bank Pekao (e)	CPA:18 – Global	50.00%	53,802		8,630		26,901		4,315
Apply Sørco AS (e)	CPA:18 – Global	49.00%	39,395		4,030		19,304		1,974
Fortenova Grupa d.d. (formerly Konzum d.d.) (e)	CPA:18 – Global	20.00%	25,650		4,184		5,130		837
Total Unconsolidated Joint Ventures			307,635		38,142		168,927		20,468
Consolidated Joint Ventures (f)
McCoy-Rockford, Inc.	Third party	90.00%	—		886		—		798
Total Consolidated Joint Ventures			—		886		—		798
Total Unconsolidated and Consolidated Joint Ventures			$	307,635	$	39,028	$	168,927	$	21,266

________

(a) See the Terms and Definitions section in the Appendix for a description of pro rata.

(b) Excludes unamortized deferred financing costs totaling $0.4 million and unamortized discount, net totaling $0.2 million as of September 30, 2019.

(c) Excludes unamortized deferred financing costs totaling $0.2 million and unamortized discount, net totaling $0.1 million as of September 30, 2019.

(d) Excludes a 90.00% equity position in a jointly owned investment, Johnson Self Storage (comprised of nine self-storage operating properties), which did not have debt outstanding as of September 30, 2019. Excludes a 15.00% common equity interest in a jointly owned investment, BPS Nevada, LLC.

(e) Amounts are based on the applicable exchange rate at the end of the period.

(f) Excludes a jointly owned investment, Shelborne Hotel, which we consolidate with a 95.45% ownership interest and which did not have debt outstanding as of September 30, 2019. Shelborne Hotel was classified as held for sale as of September 30, 2019.

Investing for the long run^TM | 25

W. P. Carey Inc.

Real Estate –Third Quarter 2019

Top Ten Tenants

Dollars in thousands. Pro rata. As of September 30, 2019.

Tenant / Lease Guarantor	Description	Number of Properties	ABR		ABR %		Weighted-Average Lease Term (Years)
U-Haul Moving Partners Inc. and Mercury Partners, LP	Net lease self-storage properties in the U.S.	78	$	38,751	3.5	%	4.6
Hellweg Die Profi-Baumärkte GmbH & Co. KG (a)	Do-it-yourself retail properties in Germany	44	34,346		3.1	%	17.4
The New York Times Company (b)	Media headquarters in New York City	1	27,967		2.5	%	4.5
State of Andalucia (a)	Government office properties in Spain	70	27,521		2.5	%	15.2
Metro Cash & Carry Italia S.p.A. (a)	Business-to-business wholesale stores in Italy and Germany	20	26,286		2.3	%	7.5
Pendragon PLC (a)	Automotive dealerships in the United Kingdom	70	20,785		1.9	%	10.6
Marriott Corporation	Net lease hotel properties in the U.S.	18	20,065		1.8	%	4.1
Extra Space Storage, Inc.	Net lease self-storage properties in the U.S.	27	19,519		1.7	%	24.6
Nord Anglia Education, Inc.	K-12 private schools in the U.S.	3	18,734		1.7	%	24.0
Forterra, Inc. (a) (c)	Industrial properties in the U.S. and Canada	27	18,376		1.6	%	23.7
Total (d)		358	$	252,350	22.6	%	12.6

________

(a) ABR amounts are subject to fluctuations in foreign currency exchange rates.

(b) As of September 30, 2019, the tenant exercised its option to repurchase the property it is leasing in the fourth quarter of 2019. There can be no assurance that such repurchase will be completed.

(c) Of the 27 properties leased to Forterra, Inc., 25 are located in the United States and two are located in Canada.

(d) See the Terms and Definitions section in the Appendix for a description of pro rata.

Investing for the long run^TM | 26

W. P. Carey Inc.

Real Estate –Third Quarter 2019

Diversification by Property Type

In thousands, except percentages. Pro rata. As of September 30, 2019.

	Total Net-Lease Portfolio							Unencumbered Net-Lease Portfolio (a)
Property Type	ABR		ABR %		Square Footage (b)	Sq. ft. %		ABR		ABR %		Square Footage (b)	Sq. ft. %
U.S.
Office	$	188,170	16.9	%	11,105	8.0	%	$	82,725	10.8	%	5,725	5.9	%
Industrial	199,197		17.8	%	36,492	26.5	%	139,671		18.3	%	26,023	26.7	%
Warehouse	136,581		12.2	%	28,453	20.7	%	80,584		10.6	%	15,857	16.3	%
Retail (c)	45,068		4.1	%	3,776	2.8	%	32,731		4.3	%	2,092	2.1	%
Self Storage (net lease)	58,270		5.2	%	5,810	4.2	%	58,270		7.6	%	5,810	6.0	%
Other (d)	102,982		9.2	%	5,716	4.2	%	66,066		8.7	%	3,297	3.4	%
U.S. Total	730,268		65.4	%	91,352	66.4	%	460,047		60.3	%	58,804	60.4	%
International
Office	85,081		7.6	%	6,271	4.6	%	50,214		6.6	%	4,396	4.5	%
Industrial	65,063		5.8	%	10,011	7.3	%	62,336		8.2	%	9,811	10.1	%
Warehouse	91,556		8.2	%	15,118	11.0	%	80,454		10.5	%	13,471	13.8	%
Retail (c)	145,403		13.0	%	14,749	10.7	%	109,523		14.4	%	10,911	11.2	%
Self Storage (net lease)	—		—	%	—	—	%	—		—	%	—	—	%
Other (d)	10		—	%	—	—	%	10		—	%	—	—	%
International Total	387,113		34.6	%	46,149	33.6	%	302,537		39.7	%	38,589	39.6	%
Total
Office	273,251		24.5	%	17,376	12.6	%	132,939		17.4	%	10,121	10.4	%
Industrial	264,260		23.6	%	46,503	33.8	%	202,007		26.5	%	35,834	36.8	%
Warehouse	228,137		20.4	%	43,571	31.7	%	161,038		21.1	%	29,328	30.1	%
Retail (c)	190,471		17.1	%	18,525	13.5	%	142,254		18.7	%	13,003	13.3	%
Self Storage (net lease)	58,270		5.2	%	5,810	4.2	%	58,270		7.6	%	5,810	6.0	%
Other (d)	102,992		9.2	%	5,716	4.2	%	66,076		8.7	%	3,297	3.4	%
Total (e)	$	1,117,381	100.0	%	137,501	100.0	%	$	762,584	100.0	%	97,393	100.0	%

________

(a) Represents properties unencumbered by non-recourse mortgage debt.

(b) Includes square footage for vacant properties.

(c) Includes automotive dealerships.

(d) Includes ABR from tenants with the following property types: education facility, hotel (net lease), fitness facility, laboratory, theater and student housing (net lease).

(e) See the Terms and Definitions section in the Appendix for a description of pro rata.

Investing for the long run^TM | 27

W. P. Carey Inc.

Real Estate –Third Quarter 2019

Diversification by Tenant Industry

In thousands, except percentages. Pro rata. As of September 30, 2019.

	Total Net-Lease Portfolio							Unencumbered Net-Lease Portfolio (a)
Industry Type	ABR		ABR %		Square Footage	Sq. ft. %		ABR		ABR %		Square Footage	Sq. ft. %
Retail Stores (b)	$	222,114	19.9	%	30,048	21.8	%	$	123,409	16.2	%	14,387	14.8	%
Consumer Services	113,736		10.2	%	8,500	6.2	%	93,361		12.2	%	7,232	7.4	%
Automotive	68,732		6.2	%	11,822	8.6	%	60,677		8.0	%	10,549	10.8	%
Cargo Transportation	59,903		5.4	%	9,650	7.0	%	54,614		7.2	%	9,260	9.5	%
Business Services	57,361		5.1	%	5,076	3.7	%	33,063		4.3	%	3,369	3.5	%
Grocery	55,051		4.9	%	6,569	4.8	%	54,214		7.1	%	6,456	6.6	%
Healthcare and Pharmaceuticals	50,671		4.5	%	4,209	3.1	%	35,371		4.6	%	3,237	3.3	%
Hotel, Gaming, and Leisure	43,694		3.9	%	2,423	1.8	%	26,070		3.4	%	1,326	1.4	%
Media: Advertising, Printing, and Publishing	42,719		3.8	%	2,147	1.6	%	8,838		1.2	%	775	0.8	%
Construction and Building	42,050		3.8	%	7,673	5.6	%	30,547		4.0	%	5,823	6.0	%
Capital Equipment	38,821		3.5	%	6,550	4.8	%	31,314		4.1	%	5,102	5.2	%
Sovereign and Public Finance	37,915		3.4	%	3,364	2.4	%	30,877		4.1	%	3,000	3.1	%
Beverage, Food, and Tobacco	37,690		3.4	%	4,863	3.5	%	35,112		4.6	%	4,674	4.8	%
Containers, Packaging, and Glass	36,207		3.2	%	6,527	4.7	%	17,877		2.4	%	3,423	3.5	%
High Tech Industries	27,316		2.5	%	2,921	2.1	%	14,635		1.9	%	1,762	1.8	%
Insurance	24,749		2.2	%	1,759	1.3	%	20,831		2.7	%	1,534	1.6	%
Durable Consumer Goods	20,728		1.9	%	4,265	3.1	%	10,700		1.4	%	2,331	2.4	%
Banking	18,968		1.7	%	1,247	0.9	%	6,330		0.8	%	494	0.5	%
Telecommunications	18,721		1.7	%	1,736	1.2	%	7,078		0.9	%	887	0.9	%
Non-Durable Consumer Goods	18,299		1.6	%	5,032	3.7	%	15,917		2.1	%	4,502	4.6	%
Aerospace and Defense	13,506		1.2	%	1,279	0.9	%	11,441		1.5	%	1,180	1.2	%
Wholesale	12,722		1.1	%	2,005	1.5	%	6,771		0.9	%	1,116	1.2	%
Media: Broadcasting and Subscription	12,533		1.1	%	784	0.6	%	812		0.1	%	92	0.1	%
Chemicals, Plastics, and Rubber	12,014		1.1	%	1,403	1.0	%	6,582		0.9	%	996	1.0	%
Metals and Mining	11,670		1.0	%	2,069	1.5	%	9,398		1.2	%	1,746	1.8	%
Other (c)	19,491		1.7	%	3,580	2.6	%	16,745		2.2	%	2,140	2.2	%
Total (d)	$	1,117,381	100.0	%	137,501	100.0	%	$	762,584	100.0	%	97,393	100.0	%

________

(a) Represents properties unencumbered by non-recourse mortgage debt.

(b) Includes automotive dealerships.

(c) Includes ABR from tenants in the following industries: oil and gas, environmental industries, electricity, forest products and paper, consumer transportation, real estate and finance. Also includes square footage for vacant properties.

(d) See the Terms and Definitions section in the Appendix for a description of pro rata.

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Real Estate –Third Quarter 2019

Diversification by Geography

In thousands, except percentages. Pro rata. As of September 30, 2019.

	Total Net-Lease Portfolio							Unencumbered Net-Lease Portfolio (a)
Region	ABR		ABR %		Square Footage (b)	Sq. ft. %		ABR		ABR %		Square Footage (b)	Sq. ft. %
U.S.
South
Texas	$	97,982	8.8	%	10,948	8.0	%	$	52,407	6.9	%	6,948	7.1	%
Florida	46,457		4.2	%	4,060	3.0	%	36,358		4.8	%	3,156	3.2	%
Georgia	28,616		2.6	%	4,024	2.9	%	23,060		3.0	%	3,067	3.2	%
Tennessee	15,774		1.4	%	2,261	1.6	%	8,310		1.1	%	1,451	1.5	%
Alabama	14,085		1.2	%	2,259	1.6	%	12,366		1.6	%	2,073	2.1	%
Other (c)	12,482		1.1	%	2,252	1.6	%	10,346		1.3	%	1,856	1.9	%
Total South	215,396		19.3	%	25,804	18.7	%	142,847		18.7	%	18,551	19.0	%
East
New York	40,872		3.6	%	2,104	1.5	%	9,659		1.3	%	829	0.9	%
North Carolina	32,290		2.9	%	6,826	5.0	%	24,044		3.1	%	5,530	5.7	%
Massachusetts	21,316		1.9	%	1,397	1.0	%	17,366		2.3	%	1,190	1.2	%
Pennsylvania	21,008		1.9	%	2,973	2.2	%	16,943		2.2	%	2,282	2.3	%
New Jersey	19,209		1.7	%	1,101	0.8	%	9,561		1.3	%	628	0.6	%
South Carolina	15,185		1.4	%	4,158	3.0	%	6,245		0.8	%	1,914	2.0	%
Virginia	13,435		1.2	%	1,430	1.0	%	11,961		1.6	%	810	0.8	%
Other (c)	33,799		3.0	%	6,594	4.8	%	18,461		2.4	%	3,553	3.7	%
Total East	197,114		17.6	%	26,583	19.3	%	114,240		15.0	%	16,736	17.2	%
Midwest
Illinois	50,473		4.5	%	5,931	4.3	%	32,760		4.3	%	3,773	3.9	%
Minnesota	25,612		2.3	%	2,450	1.8	%	20,476		2.7	%	1,782	1.8	%
Indiana	17,875		1.6	%	2,827	2.1	%	7,859		1.0	%	1,452	1.5	%
Wisconsin	15,764		1.4	%	3,744	2.7	%	12,019		1.6	%	2,319	2.4	%
Ohio	14,237		1.3	%	3,102	2.3	%	7,632		1.0	%	1,969	2.0	%
Michigan	13,119		1.2	%	2,073	1.5	%	11,787		1.5	%	1,855	1.9	%
Other (c)	26,991		2.4	%	4,806	3.5	%	14,147		1.9	%	2,189	2.3	%
Total Midwest	164,071		14.7	%	24,933	18.2	%	106,680		14.0	%	15,339	15.8	%
West
California	60,380		5.4	%	5,162	3.7	%	39,073		5.1	%	3,348	3.4	%
Arizona	37,456		3.4	%	3,652	2.7	%	18,820		2.5	%	1,342	1.4	%
Colorado	11,351		1.0	%	1,008	0.7	%	6,696		0.9	%	526	0.6	%
Other (c)	44,500		4.0	%	4,210	3.1	%	31,691		4.1	%	2,962	3.0	%
Total West	153,687		13.8	%	14,032	10.2	%	96,280		12.6	%	8,178	8.4	%
U.S. Total	730,268		65.4	%	91,352	66.4	%	460,047		60.3	%	58,804	60.4	%
International
Germany	62,589		5.6	%	6,970	5.1	%	55,343		7.3	%	6,449	6.6	%
Poland	49,278		4.4	%	7,093	5.2	%	36,406		4.8	%	6,199	6.4	%
The Netherlands	48,960		4.4	%	6,862	5.0	%	45,351		5.9	%	6,540	6.7	%
Spain	47,581		4.3	%	4,226	3.1	%	39,574		5.2	%	3,775	3.9	%
United Kingdom	37,176		3.3	%	2,924	2.1	%	33,147		4.3	%	2,664	2.7	%
Italy	24,729		2.2	%	2,386	1.7	%	—		—	%	—	—	%
Croatia	15,807		1.4	%	1,802	1.3	%	14,971		2.0	%	1,689	1.7	%
France	13,240		1.2	%	1,429	1.0	%	7,695		1.0	%	1,188	1.2	%
Canada	12,623		1.1	%	2,103	1.5	%	12,623		1.7	%	2,103	2.2	%
Denmark	11,713		1.0	%	1,987	1.5	%	11,713		1.5	%	1,987	2.0	%
Other (d)	63,417		5.7	%	8,367	6.1	%	45,714		6.0	%	5,995	6.2	%
International Total	387,113		34.6	%	46,149	33.6	%	302,537		39.7	%	38,589	39.6	%
Total (e)	$	1,117,381	100.0	%	137,501	100.0	%	$	762,584	100.0	%	97,393	100.0	%

________

(a) Represents properties unencumbered by non-recourse mortgage debt.

(b) Includes square footage for vacant properties.

(c) Other properties within South include assets in Louisiana, Oklahoma, Arkansas and Mississippi. Other properties within East include assets in Kentucky, Maryland, Connecticut, West Virginia, New Hampshire and Maine. Other properties within Midwest include assets in Missouri, Kansas, Nebraska, Iowa, North Dakota and South Dakota. Other properties within West include assets in Utah, Nevada, Oregon, Washington, Hawaii, New Mexico, Wyoming, Montana and Alaska.

(d) Includes assets in Finland, Lithuania, Norway, Hungary, Mexico, Austria, Portugal, Japan, the Czech Republic, Slovakia, Latvia, Sweden, Belgium and Estonia.

(e) See the Terms and Definitions section in the Appendix for a description of pro rata.

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W. P. Carey Inc.

Real Estate –Third Quarter 2019

Contractual Rent Increases

In thousands, except percentages. Pro rata. As of September 30, 2019.

	Total Net-Lease Portfolio							Unencumbered Net-Lease Portfolio (a)
Rent Adjustment Measure	ABR		ABR %		Square Footage	Sq. ft. %		ABR		ABR %		Square Footage	Sq. ft. %
(Uncapped) CPI	$	428,768	38.4	%	51,106	37.2	%	$	302,360	39.6	%	36,221	37.2	%
Fixed	370,273		33.1	%	46,000	33.4	%	227,184		29.8	%	29,825	30.6	%
CPI-based	258,753		23.2	%	34,051	24.8	%	199,575		26.2	%	27,827	28.6	%
Other (b)	50,777		4.5	%	3,654	2.7	%	29,571		3.9	%	2,571	2.6	%
None	8,810		0.8	%	548	0.4	%	3,894		0.5	%	163	0.2	%
Vacant	—		—	%	2,142	1.5	%	—		—	%	786	0.8	%
Total (c)	$	1,117,381	100.0	%	137,501	100.0	%	$	762,584	100.0	%	97,393	100.0	%

________

(a) Represents properties unencumbered by non-recourse mortgage debt.

(b) Represents leases attributable to percentage rent.

(c) See the Terms and Definitions section in the Appendix for a description of pro rata.

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Real Estate – Third Quarter 2019

Same Store Analysis

Dollars in thousands. Pro rata.

Same store portfolio includes leases that were continuously in place during the period from September 30, 2018 to September 30, 2019. Excludes leases for properties that were acquired, sold or vacated, or were subject to lease renewals, extensions or modifications at any time that affected ABR during that period. For purposes of comparability, ABR is presented on a constant currency basis using exchange rates as of September 30, 2019.

	ABR
Property Type	As of Sep. 30, 2019		As of Sep. 30, 2018		Increase		% Increase
Industrial	$	179,149	$	175,518	$	3,631	2.1	%
Office	150,290		147,457		2,833		1.9	%
Retail (a)	107,209		105,435		1,774		1.7	%
Warehouse	98,962		97,116		1,846		1.9	%
Self Storage (net lease)	34,279		31,853		2,426		7.6	%
Other (b)	72,662		71,501		1,161		1.6	%
Total	$	642,551	$	628,880	$	13,671	2.2	%
Rent Adjustment Measure
(Uncapped) CPI	$	244,717	$	238,164	$	6,553	2.8	%
Fixed	183,970		180,592		3,378		1.9	%
CPI-based	183,726		179,986		3,740		2.1	%
Other (c)	23,948		23,948		—		—	%
None	6,190		6,190		—		—	%
Total	$	642,551	$	628,880	$	13,671	2.2	%
Geography
U.S.	$	429,042	$	420,033	$	9,009	2.1	%
Europe	198,622		194,407		4,215		2.2	%
Other International (d)	14,887		14,440		447		3.1	%
Total	$	642,551	$	628,880	$	13,671	2.2	%
Same Store Portfolio Summary
Number of properties	838
Square footage (in thousands)	78,042

________

(a) Includes automotive dealerships.

(b) Includes ABR from tenants with the following property types: education facility, hotel (net lease), theater, fitness facility and student housing (net lease).

(c) Represents leases attributable to percentage rent.

(d) Includes assets in Canada, Mexico and Japan.

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Real Estate – Third Quarter 2019

Leasing Activity

For the three months ended September 30, 2019, except ABR. Pro rata.

Lease Renewals and Extensions(a)										Expected Tenant Improvements ($000s)		Leasing Commissions ($000s)
			ABR
Property Type	Square Feet	Number of Leases	Prior Lease ($000s)			New Lease ($000s) (b)		Releasing Spread						Incremental Lease Term
Office	84,709	1	$	789		$	789	—	%	$	—	$	—	3.0 years
Industrial	194,218	1	2,329			2,329		—	%	—		—		8.3 years
Warehouse	961,361	2	2,939			3,947		34.3	%	—		—		13.4 years
Retail	—	—	—			—		—	%	—		—		N/A
Self Storage (net lease)	—	—	—			—		—	%	—		—		N/A
Other	129,160	1	2,097			1,679		(19.9	)%	775		321		9.0 years
Total / Weighted Average (c)	1,369,448	5	$	8,154		$	8,744	7.2	%	$	775	$	321	10.5 years
Q3 Summary
Prior Lease ABR (% of Total Portfolio)			0.7		%

New Leases					Expected Tenant Improvements ($000s)		Leasing Commissions ($000s)
			ABR
Property Type	Square Feet	Number of Leases	New Lease ($000s) (b)						New Lease Term
Office	26,935	1	$	195	$	128	$	62	5.3 years
Industrial	—	—	—		—		—		N/A
Warehouse	—	—	—		—		—		N/A
Retail	25,252	13	307		—		4		5.0 years
Self Storage (net lease) (d)	334,720	5	5,900		—		—		24.7 years
Other	71,215	1	890		3,205		915		15.0 years
Total / Weighted Average (e)	458,122	20	$	7,292	$	3,333	$	981	22.2 years

_______

(a) Excludes lease extensions for a period of one year or less.

(b) New Lease amounts are based on in-place rents at time of lease commencement and exclude any free rent periods.

(c) Weighted average refers to the incremental lease term.

(d) During the second quarter of 2019, we entered into net lease agreements for 36 self-storage operating properties, the vast majority of which we acquired in the CPA:17 Merger. Pursuant to these agreements, 22 self-storage operating properties were converted to net leases on June 1, 2019 and five self-storage operating properties were converted to net leases on August 1, 2019 (as reflected in the table above), at which time we began recognizing lease revenues on the properties and ceased recognizing operating property revenues and expenses.

(e) Weighted average refers to the new lease term.

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Real Estate –Third Quarter 2019

Lease Expirations – Total Net-Lease Portfolio

In thousands, except percentages and number of leases. Pro rata. As of September 30, 2019.

Year of Lease Expiration (a)	Number of Leases Expiring	Number of Tenants with Leases Expiring	ABR		ABR %		Square Footage	Sq. ft. %
Remaining 2019	11	10	$	6,862	0.6	%	692	0.5	%
2020	25	23	19,951		1.8	%	2,117	1.5	%
2021	79	23	36,438		3.3	%	4,775	3.5	%
2022	41	33	60,230		5.4	%	6,154	4.5	%
2023	30	28	49,633		4.5	%	6,351	4.6	%
2024 (b)	64	40	137,883		12.3	%	14,643	10.6	%
2025	58	26	54,712		4.9	%	7,129	5.2	%
2026	30	18	48,011		4.3	%	7,115	5.2	%
2027	46	28	71,986		6.4	%	8,494	6.2	%
2028	44	26	66,065		5.9	%	6,795	4.9	%
2029	30	18	37,080		3.3	%	4,619	3.4	%
2030	29	23	76,358		6.8	%	7,188	5.2	%
2031	62	12	58,136		5.2	%	6,229	4.5	%
2032	36	15	46,776		4.2	%	7,323	5.3	%
Thereafter (>2032)	170	78	347,260		31.1	%	45,735	33.3	%
Vacant	—	—	—		—	%	2,142	1.6	%
Total (c)	755		$	1,117,381	100.0	%	137,501	100.0	%

________

(a) Assumes tenants do not exercise any renewal options or purchase options.

(b) Includes ABR of $28.0 million from a tenant (The New York Times Company) that as of September 30, 2019 exercised its option to repurchase the property it is leasing in the fourth quarter of 2019. There can be no assurance that such repurchase will be completed.

(c) See the Terms and Definitions section in the Appendix for a description of pro rata.

Investing for the long run^TM | 33

W. P. Carey Inc.

Real Estate –Third Quarter 2019

Lease Expirations – Unencumbered Net-Lease Portfolio

In thousands, except percentages and number of leases. Pro rata. As of September 30, 2019.

Year of Lease Expiration (a)	Number of Leases Expiring	Number of Tenants with Leases Expiring	ABR		ABR %		Square Footage	Sq. ft. %
Remaining 2019	3	3	$	4,836	0.6	%	631	0.6	%
2020	16	16	14,838		1.9	%	1,732	1.8	%
2021	66	13	22,922		3.0	%	3,256	3.4	%
2022	26	19	25,468		3.3	%	3,138	3.2	%
2023	18	17	15,648		2.1	%	2,764	2.8	%
2024	52	29	88,852		11.6	%	10,819	11.1	%
2025	44	17	34,270		4.5	%	4,811	4.9	%
2026	17	13	28,081		3.7	%	4,986	5.1	%
2027	31	19	45,548		6.0	%	5,281	5.4	%
2028	29	17	43,319		5.7	%	5,065	5.2	%
2029	26	15	33,299		4.4	%	4,336	4.5	%
2030	22	19	40,980		5.4	%	4,726	4.9	%
2031	60	10	52,386		6.9	%	5,271	5.4	%
2032	15	13	32,296		4.2	%	5,612	5.8	%
Thereafter (>2032)	146	62	279,841		36.7	%	34,179	35.1	%
Vacant	—	—	—		—	%	786	0.8	%
Total (b) (c)	571		$	762,584	100.0	%	97,393	100.0	%

________

(a) Assumes tenants do not exercise any renewal options or purchase options.

(b) See the Terms and Definitions section in the Appendix for a description of pro rata.

(c) Represents properties unencumbered by non-recourse mortgage debt.

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Investment Management

Third Quarter 2019

Investing for the long run^TM | 35

W. P. Carey Inc.

Investment Management –Third Quarter 2019

Selected Information – Managed Programs

Dollars and square footage in thousands, except per share amounts. As of or for the three months ended September 30, 2019.

	Managed Programs
	CPA:18 – Global			CWI 1			CWI 2			CESH
General
Year established	2013			2010			2015			2016
AUM (a)	$	2,470,249		$	2,826,346		$	2,014,511		$	305,236
Net-lease AUM	1,367,325			N/A			N/A			N/A
NAV (b)	8.91			10.39			11.41			1,000.00
Fundraising status	Closed			Closed			Closed			Closed
Portfolio
Investment type	Net lease / Diversified REIT			Lodging REIT			Lodging REIT			Student Housing
Number of operating properties	83			26			12			9
Number of net-leased properties	46			N/A			N/A			N/A
Number of tenants – net-leased properties	50			N/A			N/A			N/A
Square footage (c) (d)	9,586			6,069			3,468			780
Occupancy (e)	97.9		%	75.9		%	79.1		%	83.1		%
Acquisitions – third quarter	$	—		$	—		$	—		$	—
Dispositions – third quarter	37,142			79,000			—			—
Balance Sheet (Book Value)
Total assets	$	2,196,365		$	2,211,115		$	1,586,322		$	316,615
Total debt	1,175,801			1,309,847			831,393			101,892
Total debt / total assets	53.5		%	59.2		%	52.4		%	32.2		%

________

(a) Represents estimated fair value of real estate assets plus cash and cash equivalents, less distributions payable for the Managed REITs and estimated fair value of real estate assets plus cash for CESH.

(b) The estimated NAVs for CWI 1 and CWI 2 were determined as of December 31, 2018. The estimated NAV for CPA:18 – Global was determined as of June 30, 2019. We own limited partnership units of CESH at its private placement price of $1,000 per unit; we do not intend to calculate a NAV for CESH.

(c) For CPA:18 – Global, excludes operating properties.

(d) For CESH, five properties have been placed into service as of September 30, 2019. The remaining investments are build-to-suit projects and gross square footage cannot be determined at this time.

(e) Represents occupancy for single-tenant net-leased properties for CPA:18 – Global. Represents occupancy for hotels owned by CWI 1 and CWI 2 for the three months ended September 30, 2019.

Investing for the long run^TM | 36

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Investment Management –Third Quarter 2019

Managed Programs Fee Summary

Dollars in thousands. For the three months ended September 30, 2019, unless otherwise noted.

	Managed Programs
	CPA:18 – Global		CWI 1		CWI 2		CESH (a)		Total
Year established	2013		2010		2015		2016
Fundraising status	Closed		Closed		Closed		Closed
1. Structuring and Other Advisory Fees(b)
Structuring fee, gross (% of total aggregate cost)	4.50% (c)		2.50%		2.50%		2.00%
Net of subadvisor fees (d)	4.50%		2.00%		1.875%		2.00%
Gross acquisition volume – third quarter	$	—	$	—	$	—	$	—	$	—
Gross disposition volume – third quarter	$	37,142	$	79,000	$	—	$	—	$	116,142
Structuring and other advisory revenue – third quarter (e)	$	—	$	528	$	—	$	59	$	587
2. Asset Management Fees
Asset management fee, gross (% of average AUM, per annum)	0.50% (f)		0.50% (f)		0.55% (f)		1.00% (g)
Net of subadvisor fees (d)	0.50%		0.40%		0.41%		1.00%
AUM – current quarter	$	2,470,249	$	2,826,346	$	2,014,511	$	305,236	$	7,616,342
AUM – prior quarter	$	2,419,743	$	2,890,385	$	2,013,419	$	283,971	$	7,607,518
Average AUM	$	2,444,996	$	2,858,366	$	2,013,965	$	294,604	$	7,611,930
Asset management revenue – third quarter (h)	$	2,929	$	3,547	$	2,683	$	719	$	9,878
3. Operating Partnership Interests(i)
Operating partnership interests, gross (% of Available Cash)	10.00%		10.00%		10.00%		N/A
Net of subadvisor fees (d)	10.00%		8.00%		7.50%		N/A
Equity in earnings of equity method investments in the Managed Programs and real estate (profits interest) – third quarter (j)	$	1,619	$	2,030	$	993	N/A		$	4,642

________

(a) In addition to the fees shown, we may also receive distributions from CESH upon liquidation of the fund in an amount potentially equal to 20% of available cash after the limited partners have received certain cumulative distributions.

(b) Other advisory fees primarily include disposition fees earned for completing dispositions on behalf of the Managed Programs. Structuring and other advisory fees are recorded in Structuring and other advisory revenue in our consolidated financial statements.

(c) Comprised of an initial acquisition fee (generally 2.50% of the total aggregate cost of net-leased properties) paid when the transaction is completed and a subordinated acquisition fee (generally 2.00% of the total aggregate cost of net-leased properties) paid in annual installments over three years, provided certain performance criterion are met. The acquisition fee for other properties is generally 1.75% of the total aggregate cost.

(d) We earn investment management revenue from CWI 1 and CWI 2 in our role as their advisor. Pursuant to the terms of their subadvisory agreements, however, 20% of the fees we receive from CWI 1 and 25% of the fees we receive from CWI 2 are paid to their respective subadvisors.

(e) Amount for CWI 1 is related to mortgage loan refinancings. Amount for CESH is related to increases in build-to-suit funding commitments for certain investments.

(f) Based on average market value of assets. Under the terms of the respective advisory agreements of the Managed REITs, we may elect to receive cash or shares of CWI 1 and CWI 2’s stock for asset management fees due, while CPA:18 – Global has an option to pay asset management fees in cash or shares upon our recommendation. Asset management fees are recorded in Asset management revenue in our consolidated financial statements.

(g) Based on gross assets at fair value.

(h) Amounts for CWI 1 and CWI 2 are gross of fees paid to their respective subadvisors.

(i) Available Cash means cash generated by operating partnership operations and investments, excluding cash from sales and refinancings, after the payment of debt service and other operating expenses, but before distributions to partners. Amounts are recorded in Equity in earnings of equity method investments in the Managed Programs and real estate in our consolidated financial statements.

(j) Amounts for CWI 1 and CWI 2 are net of fees paid to their respective subadvisors.

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W. P. Carey Inc.

Investment Management –Third Quarter 2019

Investment Activity – Managed Programs

Dollars in thousands. Pro rata. For the nine months ended September 30, 2019.

Acquisitions			Gross Investment Amount				Gross Square Footage
Fund	Developer	Property Location(s)			Closing Date	Property Type(s)		Ownership
1Q19
CPA:18 – Global (a) (b)	Grupo Moraval	Pamplona, Spain	$	29,736	Feb-19	Student Housing	91,363	100.0	%
1Q19 Total			29,736				91,363
2Q19 (N/A)
3Q19 (N/A)
Year-to-Date Total Acquisitions			$	29,736			91,363

Dispositions							Gross Square Footage
Portfolio(s)	Tenant / Operator	Property Location(s)	Gross Sale Price		Closing Date	Property Type(s)		Ownership
1Q19
CPA:18 – Global	Cayo Grande	Fort Walton Beach, FL	$	39,750	Jan-19	Multi-family	237,582	97.0	%
CPA:18 – Global (a)	Craigentinny	Edinburgh, United Kingdom	4,408		Mar-19	Industrial	24,788	100.0	%
1Q19 Total			44,158				262,370
2Q19
CPA:18 – Global (a)	Inverbreakie	Invergordon, United Kingdom	797		Apr-19	Industrial	10,045	100.0	%
CPA:18 – Global (a)	UK Automotive	Durham, United Kingdom	2,288		Jun-19	Industrial	10,809	100.0	%
2Q19 Total			3,085				20,854
3Q19
CPA:18 – Global (8 properties) (a)	Truffle	Various, United Kingdom	32,634		Aug-19	Industrial	409,112	100.0	%
CPA:18 – Global (a)	Jane Street Self Storage	Vaughan, Canada	4,508		Aug-19	Self Storage	N/A	100.0	%
CWI 1	Marriott	San Diego, CA	79,000		Sep-19	Hotel	178,020	100.0	%
3Q19 Total			116,142				587,132
Year-to-Date Total Dispositions			$	163,385			870,356

________

(a) Amount reflects the applicable exchange rate on the date of the transaction.

(b) Acquisition includes a build-to-suit transaction. Gross investment amount represents total commitment for build-to-suit funding.

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W. P. Carey Inc.

Investment Management –Third Quarter 2019

Summary of Future Liquidity Strategies for the Managed Programs

As of September 30, 2019.

Liquidity events for the Managed REITs must be approved by each Managed REIT’s board of directors. A liquidity transaction could include sales of assets, either on a portfolio basis or individually; a listing of each Managed REIT’s shares on a national securities exchange; or a merger or other transaction(s) approved by the respective board of directors. Market conditions and other factors could cause the delay of a liquidity transaction or the commencement of liquidation. Even if a Managed REIT’s board of directors decides to liquidate, the Managed REIT is under no obligation to conclude a liquidation within a set timeframe because the precise timing of any transaction(s) will depend on the then-prevailing real estate and financial markets, the economic conditions of the areas in which properties are located and the federal income tax consequences to the Managed REIT’s stockholders.

General Liquidation Guideline (a)
CPA:18 – Global	CWI 1 (b)	CWI 2 (b)	CESH
Beginning after the seventh anniversary of the closing of the initial public offering in 2015	Beginning six years following the termination of the initial public offering in 2013	Beginning six years following the termination of the initial public offering in 2017	Beginning five years after raising the minimum offering amount in 2016

________

(a) Based on general liquidation guidelines set forth in the respective prospectuses for the timeframes that each board of directors is required to consider liquidity; ultimately, liquidation is approved by the independent directors of each program (except for CESH, which is determined by its General Partner).

(b) On October 22, 2019, CWI 1 and CWI 2 announced that they have entered into a definitive merger agreement under which the two companies intend to merge in an all-stock transaction. The transaction is expected to close in the first quarter of 2020, subject to the approval of stockholders of each of CWI 1 and CWI 2, among other conditions. Following the close of the merger, the combined company will complete an internalization transaction with us and its subadvisor Watermark Capital Partners, LLC, as a result of which the combined company will become self-managed. Following the completion of the merger, we would cease earning advisory fees and distributions of available cash from CWI 1 and CWI 2.

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W. P. Carey Inc.

Investment Management –Third Quarter 2019

Summary of Back-End Fees for / Interests in the Managed Programs

The overview below is intended to provide a summary of current disclosures regarding various back-end fees and interests that we may be entitled to upon each Managed Program’s liquidity event. Such liquidity events are at the discretion of each Managed REIT’s board of directors and there is no assurance that any of the fees or interests described below will be realized. Please refer to each Managed REIT’s filings with the SEC for complete descriptions of each Managed REIT’s liquidity strategy.

	Back-End Fees and Interests
	CPA:18 – Global	CWI 1 (a)	CWI 2 (a)	CESH
Disposition Fees	Investments other than those described below — equal to the lesser of (i) 50% of the brokerage commission paid or (ii) 3% of the contract sales price of a property. Readily marketable real estate securities — none.	Equal to the lesser of: (i) 50% of the competitive real estate commission and (ii) 1.5% of the contract sales price of a property.	Equal to the lesser of: (i) 50% of the competitive real estate commission and (ii) 1.5% of the contract sales price of a property.	N/A
Interest in Disposition Proceeds	Special general partner interest entitled to receive distributions of up to 15% of the net proceeds from the sale, exchange or other disposition of operating partnership assets remaining after the corporation has received a return of 100% of its initial investment in the operating partnership, through certain liquidity events or distributions, plus the 6% preferred return rate.	Special general partner interest receives up to 15% of the net proceeds from the sale, exchange or other disposition of operating partnership assets remaining after the corporation has received a return of 100% of its initial investment in the operating partnership (through certain liquidity transactions or distributions) plus the six percent preferred return rate. A listing will not trigger the payment of this distribution.	Special general partner interest receives up to 15% of the net proceeds from the sale, exchange or other disposition of operating partnership assets remaining after the corporation has received a return of 100% of its initial investment in the operating partnership (through certain liquidity transactions or distributions) plus the six percent preferred return rate. A listing will not trigger the payment of this distribution.	Available Cash (as defined in In “Principal Terms”), subject to any other limitations provided for herein, will be initially apportioned among the Limited Partners in proportion to their respective capital contributions and the General Partner as provided in connection with its Carried Interest and distributed. (b)
Purchase of Special GP Interest	Lesser of (i) 5.0x the distributions of the last completed fiscal year and (ii) the discounted value of expected future distributions from point of valuation to March 2025 using a discount rate used by the independent third-party valuation firm to determine the most recent appraisal.	Fair market value as determined by appraisal.	Fair market value as determined by appraisal.	N/A
Distribution Related to Ownership of Shares	3.8% ownership as of 9/30/2019	3.7% ownership as of 9/30/2019	3.5% ownership as of 9/30/2019	2.4% ownership as of 9/30/2019

________

(a) On October 22, 2019, CWI 1 and CWI 2 announced that they have entered into a definitive merger agreement under which the two companies intend to merge in an all-stock transaction with CWI 2 as the surviving entity. The transaction is expected to close in the first quarter of 2020, subject to the approval of stockholders of each of CWI 1 and CWI 2, among other conditions. In connection with the merger, we have entered into an internalization agreement with CWI 1 and CWI 2. Immediately following the closing of the merger, the operating partnerships of each of CWI 1 and CWI 2 will redeem the special general partner interests that we hold, for which we will receive approximately $97 million in consideration, comprised of $65 million in shares of CWI 2 preferred stock (which are anticipated to carry an initial dividend of 5.0%) and 2,840,549 shares of CWI 2 common stock valued at approximately $32 million.

(b) Order of distributions are as follows: (1) First, to a Limited Partner until it has received an amount equal to its total capital contributions or deemed capital contribution with respect to the Advisor Units in the case of the Advisor (or a wholly owned subsidiary of the Advisor); (2) Second, to a Limited Partner until such Limited Partner has received a cumulative, non-compounding, annual 10% return on its unreturned capital contributions (the “Preferred Return”); (3) Third, to the General Partner until the General Partner has received 20% of the aggregate amounts distributed pursuant to clause (2) and this clause (3); (4) Thereafter, 80% to such Limited Partner and 20% to the General Partner (together with the amounts received under clause (3), the General Partner’s “Carried Interest”). The Advisor’s capital contribution for purposes of the Partnership Agreement will be deemed to be the value of the Advisor Units upon their issuance.

Investing for the long run^TM | 40

W. P. Carey Inc.

Appendix

Third Quarter 2019

Investing for the long run^TM | 41

W. P. Carey Inc.

Appendix – Third Quarter 2019

Normalized Pro Rata Cash NOI

In thousands. From real estate.

	Three Months Ended Sep. 30, 2019
Consolidated Lease Revenues
Total lease revenues – as reported	$	278,839
Less: Consolidated Reimbursable and Non-Reimbursable Property Expenses
Reimbursable property expenses – as reported	15,611
Non-reimbursable property expenses – as reported	10,377
	252,851
Plus: NOI from Operating Properties
Hotel revenues (a)	3,928
Hotel expenses (a)	(2,878		)
	1,050
Self-storage revenues	2,125
Self-storage expenses	(966		)
	1,159
	255,060
Adjustments for Pro Rata Ownership of Real Estate Joint Ventures:
Add: Pro rata share of NOI from equity investments	5,594
Less: Pro rata share of NOI attributable to noncontrolling interests	(22		)
	5,572
	260,632
Adjustments for Pro Rata Non-Cash Items:
Add: Above- and below-market rent intangible lease amortization	14,967
Less: Straight-line rent amortization	(6,399		)
Add: Other non-cash items	380
	8,948
Pro Rata Cash NOI (b)	269,580
Adjustment to normalize for intra-period acquisitions and dispositions (c)	1,552
Normalized Pro Rata Cash NOI (b)	$	271,132

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W. P. Carey Inc.

Appendix – Third Quarter 2019

The following table presents a reconciliation from Net income from Real Estate attributable to W. P. Carey to Normalized pro rata cash NOI:

	Three Months Ended Sep. 30, 2019
Net Income from Real Estate Attributable to W. P. Carey
Net income from Real Estate attributable to W. P. Carey – as reported	$	33,556
Adjustments for Consolidated Operating Expenses
Add: Operating expenses – as reported	186,367
Less: Property expenses, excluding reimbursable tenant costs – as reported	(10,377		)
Less: Operating property expenses – as reported	(8,547		)
	167,443
Adjustments for Other Consolidated Revenues and Expenses:
Less: Lease termination income and other – as reported	(14,377		)
Less: Reimbursable property expenses – as reported	(15,611		)
Less: Other income and (expenses)	79,331
Add: Provision for income taxes	3,511
	52,854
Other Adjustments:
Add: Above- and below-market rent intangible lease amortization	14,969
Less: Straight-line rent amortization	(6,376		)
Add: Adjustments for pro rata ownership	5,579
Adjustment to normalize for intra-period acquisitions and dispositions (c)	1,552
Adjustment to normalize for unstabilized hotel (a)	1,218
Add: Property expenses, excluding reimbursable tenant costs, non-cash	337
	17,279
Normalized Pro Rata Cash NOI (b)	$	271,132

________

(a) We exclude an unstabilized hotel’s NOI since it is currently being renovated. This hotel was classified as held for sale as of September 30, 2019.

(b) Pro rata cash NOI and normalized pro rata cash NOI are non-GAAP measures. See the Terms and Definitions section that follows for a description of our non-GAAP measures and for details on how pro rata cash NOI and normalized pro rata cash NOI are calculated.

(c) For properties acquired during the three months ended September 30, 2019, the adjustment modifies our pro rata share of cash NOI for the partial period with an amount estimated to be equivalent to the additional pro rata share of cash NOI necessary to reflect ownership for the full quarter. For properties disposed of during the three months ended September 30, 2019, the adjustment eliminates our pro rata share of cash NOI for the period.

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W. P. Carey Inc.

Appendix – Third Quarter 2019

Adjusted EBITDA, Consolidated – Last Five Quarters

In thousands.

	Three Months Ended
	Sep. 30, 2019			Jun. 30, 2019			Mar. 31, 2019			Dec. 31, 2018			Sep. 30, 2018
Net income	$	41,835		$	66,121		$	68,796		$	195,278		$	81,573
Adjustments to Derive Consolidated EBITDA
Depreciation and amortization	109,517			113,632			112,379			93,321			67,825
Interest expense	58,626			59,719			61,313			57,250			41,740
Provision for (benefit from) income taxes	4,157			3,119			(2,129		)	11,436			2,715
Consolidated EBITDA (a)	214,135			242,591			240,359			357,285			193,853
Adjustments to Derive Adjusted EBITDA (b)
Impairment charges	25,781			—			—			—			—
Other (gains) and losses (c)	18,618			5,724			4,930			(9,001		)	(5,148		)
Above- and below-market rent intangible and straight-line rent adjustments (d)	8,591			8,467			9,660			8,888			9,780
Loss (gain) on change in control of interests (e) (f)	8,416			—			—			(47,814		)	—
Stock-based compensation expense	4,747			4,936			4,165			3,902			2,475
Other amortization and non-cash charges	422			415			(327		)	(408		)	(305		)
(Gain) loss on sale of real estate, net	(71		)	362			(933		)	(99,618		)	(343		)
Merger and other expenses (g)	70			696			146			37,098			1,673
	66,574			20,600			17,641			(106,953		)	8,132
Adjustments for Pro Rata Ownership
Real Estate Joint Ventures:
Add: Pro rata share of adjustments for equity investments	5,471			5,744			6,106			4,143			366
Less: Pro rata share of adjustments for amounts attributable to noncontrolling interests	(530		)	(117		)	(399		)	(2,662		)	(7,046		)
	4,941			5,627			5,707			1,481			(6,680		)
Equity Investments in the Managed Programs: (h)
Add: Distributions received from equity investments in the Managed Programs	1,980			1,870			1,753			4,238			4,099
Less: Loss (income) from equity investments in the     Managed Programs	288			45			116			682			(529		)
	2,268			1,915			1,869			4,920			3,570
Add: Intra-period normalization of CPA:17 Merger (closed October 31, 2018) (i)	—			—			—			21,528			—
Adjusted EBITDA (a)	$	287,918		$	270,733		$	265,576		$	278,261		$	198,875

________

(a) EBITDA and adjusted EBITDA are non-GAAP measures. See the Terms and Definitions section that follows for a description of our non-GAAP measures.

(b) Comprised of items that we do not consider to be part of our core operating business plan or representative of our overall long-term operating performance, based on a number of factors, including the nature of the item and/or the frequency with which it occurs. We believe that these adjustments provide a more representative view of EBITDA from our core operating business and allow for more meaningful comparisons.

(c) Primarily comprised of unrealized gains and losses on derivatives, and gains and losses from foreign currency movements, extinguishment of debt and marketable securities.

(d) Straight-line rent adjustments relate to our net-leased properties subject to operating leases.

(e) Amount for the three months ended September 30, 2019 represents a loss recognized on the purchase of the remaining interest in an investment from CPA:17 in the CPA:17 Merger, which we had previously accounted for under the equity method. We recognized this loss because we identified certain measurement period adjustments during the third quarter of 2019 that impacted the provisional accounting for this investment.

(f) Amount for the three months ended December 31, 2018 includes a gain of $18.8 million recognized on the purchase of the remaining interests in six investments from CPA:17 – Global in the CPA:17 Merger, which we had previously accounted for under the equity method. Amount for the three months ended December 31, 2018 also includes a gain of $29.0 million recognized on our previously held interest in shares of CPA:17 – Global common stock in connection with the CPA:17 Merger.

(g) Amounts are primarily comprised of costs incurred in connection with the CPA:17 Merger.

(h) Adjustments to include cash distributions received from the Managed Programs in place of our pro rata share of net income from our ownership in the Managed Programs.

(i) The adjustment modifies Adjusted EBITDA for the pro rata share of cash NOI for the partial period with an amount estimated to be equivalent to the additional pro rata share of cash NOI necessary to reflect ownership for the full quarter. The adjustment is reduced for advisory fees received from CPA:17 – Global during the three months ended December 31, 2018.

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W. P. Carey Inc.

Appendix – Third Quarter 2019

Adjusted EBITDA, Real Estate – Last Five Quarters

In thousands.

	Three Months Ended
	Sep. 30, 2019			Jun. 30, 2019			Mar. 31, 2019			Dec. 31, 2018			Sep. 30, 2018
Net income from Real Estate	$	33,545		$	60,759		$	53,334		$	153,626		$	55,234
Adjustments to Derive Consolidated EBITDA
Depreciation and amortization	108,573			112,666			111,413			92,330			66,837
Interest expense	58,626			59,719			61,313			57,250			41,740
Provision for income taxes	3,511			3,019			6,159			948			424
Consolidated EBITDA – Real Estate (a)	204,255			236,163			232,219			304,154			164,235
Adjustments to Derive Adjusted EBITDA (b)
Impairment charges	25,781			—			—			—			—
Other (gains) and losses (c)	18,956			5,888			3,929			(11,269		)	(5,084		)
Above- and below-market rent intangible and straight-line rent adjustments (d)	8,591			8,467			9,660			8,888			9,780
Loss (gain) on change in control of interests (e) (f)	8,416			—			—			(18,792		)	—
Stock-based compensation expense	3,435			3,482			2,800			2,774			1,380
Other amortization and non-cash charges	422			415			(326		)	(240		)	(53		)
(Gain) loss on sale of real estate, net	(71		)	362			(933		)	(99,618		)	(343		)
Merger and other expenses (g)	70			696			146			37,098			1,673
	65,600			19,310			15,276			(81,159		)	7,353
Adjustments for Pro Rata Ownership
Real Estate Joint Ventures:
Add: Pro rata share of adjustments for equity investments	5,471			5,744			6,106			4,143			366
Less: Pro rata share of adjustments for amounts attributable to noncontrolling interests	(530		)	(117		)	(399		)	(2,662		)	(7,046		)
	4,941			5,627			5,707			1,481			(6,680		)
Add: Intra-period normalization of CPA:17 Merger (closed October 31, 2018) (h)	—			—			—			31,555			—
Adjusted EBITDA – Real Estate (a)	$	274,796		$	261,100		$	253,202		$	256,031		$	164,908

________

(a) EBITDA and adjusted EBITDA are non-GAAP measures. See the Terms and Definitions section that follows for a description of our non-GAAP measures.

(b) Comprised of items that we do not consider to be part of our core operating business plan or representative of our overall long-term operating performance, based on a number of factors, including the nature of the item and/or the frequency with which it occurs. We believe that these adjustments provide a more representative view of EBITDA from our core operating business and allow for more meaningful comparisons.

(c) Primarily comprised of unrealized gains and losses on derivatives, and gains and losses from foreign currency movements, extinguishment of debt and marketable securities.

(d) Straight-line rent adjustments relate to our net-leased properties subject to operating leases.

(e) Amount for the three months ended September 30, 2019 represents a loss recognized on the purchase of the remaining interest in an investment from CPA:17 in the CPA:17 Merger, which we had previously accounted for under the equity method. We recognized this loss because we identified certain measurement period adjustments during the third quarter of 2019 that impacted the provisional accounting for this investment.

(f) Amount for the three months ended December 31, 2018 represents a gain recognized on the purchase of the remaining interests in six investments from CPA:17 – Global in the CPA:17 Merger, which we had previously accounted for under the equity method.

(g) Amounts are primarily comprised of costs incurred in connection with the CPA:17 Merger.

(h) The adjustment modifies Adjusted EBITDA for the pro rata share of cash NOI for the partial period with an amount estimated to be equivalent to the additional pro rata share of cash NOI necessary to reflect ownership for the full quarter.

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W. P. Carey Inc.

Appendix – Third Quarter 2019

Adjusted EBITDA, Investment Management – Last Five Quarters

In thousands.

	Three Months Ended
	Sep. 30, 2019			Jun. 30, 2019			Mar. 31, 2019			Dec. 31, 2018			Sep. 30, 2018
Net income from Investment Management	$	8,290		$	5,362		$	15,462		$	41,652		$	26,339
Adjustments to Derive Consolidated EBITDA
Depreciation and amortization	944			966			966			991			988
Provision for (benefit from) income taxes	646			100			(8,288		)	10,488			2,291
Consolidated EBITDA – Investment Management (a)	9,880			6,428			8,140			53,131			29,618
Adjustments to Derive Adjusted EBITDA (b)
Stock-based compensation expense	1,312			1,454			1,365			1,128			1,095
Other (gains) and losses (c)	(338		)	(164		)	1,001			2,268			(64		)
Other amortization and non-cash charges	—			—			(1		)	(168		)	(252		)
Gain on change in control of interests (d)	—			—			—			(29,022		)	—
	974			1,290			2,365			(25,794		)	779
Adjustments for Pro Rata Ownership
Equity Investments in the Managed Programs: (e)
Add: Distributions received from equity investments in the Managed Programs	1,980			1,870			1,753			4,238			4,099
Less: Loss (income) from equity investments in the Managed Programs	288			45			116			682			(529		)
	2,268			1,915			1,869			4,920			3,570
Add: Intra-period normalization of CPA:17 Merger (closed October 31, 2018) (f)	—			—			—			(10,027		)	—
Adjusted EBITDA – Investment Management (a)	$	13,122		$	9,633		$	12,374		$	22,230		$	33,967

________

(a) EBITDA and adjusted EBITDA are non-GAAP measures. See the Terms and Definitions section that follows for a description of our non-GAAP measures.

(b) Comprised of items that we do not consider to be part of our core operating business plan or representative of our overall long-term operating performance, based on a number of factors, including the nature of the item and/or the frequency with which it occurs. We believe that these adjustments provide a more representative view of EBITDA from our core operating business and allow for more meaningful comparisons.

(c) Primarily comprised of gains and losses from foreign currency movements and marketable securities.

(d) Amount for the three months ended December 31, 2018 represents a gain recognized on our previously held interest in shares of CPA:17 – Global common stock in connection with the CPA:17 Merger.

(e) Adjustments to include cash distributions received from the Managed Programs in place of our pro rata share of net income from our ownership in the Managed Programs.

(f) The adjustment reduces Adjusted EBITDA for advisory fees received from CPA:17 – Global during the three months ended December 31, 2018.

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W. P. Carey Inc.

Appendix – Third Quarter 2019

Terms and Definitions

Non-GAAP Financial Disclosures

FFO and AFFO

Due to certain unique operating characteristics of real estate companies, as discussed below, NAREIT, an industry trade group, has promulgated a non-GAAP measure known as FFO, which we believe to be an appropriate supplemental measure, when used in addition to and in conjunction with results presented in accordance with GAAP, to reflect the operating performance of a REIT. The use of FFO is recommended by the REIT industry as a supplemental non-GAAP measure. FFO is not equivalent to, nor a substitute for, net income or loss as determined under GAAP.

We define FFO, a non-GAAP measure, consistent with the standards established by the White Paper on FFO approved by the Board of Governors of NAREIT, as restated in December 2018. The White Paper defines FFO as net income or loss computed in accordance with GAAP, excluding gains or losses from sales of property, impairment charges on real estate, gains or losses on changes in control of interests in real estate and depreciation and amortization from real estate assets; and after adjustments for unconsolidated partnerships and jointly owned investments. Adjustments for unconsolidated partnerships and jointly owned investments are calculated to reflect FFO.

We also modify the NAREIT computation of FFO to adjust GAAP net income for certain non-cash charges, such as amortization of real estate-related intangibles, deferred income tax benefits and expenses, straight-line rents, stock-based compensation, non-cash environmental accretion expense and amortization of deferred financing costs. 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 have no impact on cash flows. Additionally, we exclude non-core income and expenses, such as gains or losses from extinguishment of debt, restructuring and related compensation expenses and merger and acquisition expenses. We also exclude realized and unrealized gains/losses on foreign currency exchange transactions (other than those realized on the settlement of foreign currency derivatives), which are not considered fundamental attributes of our business plan and do not affect our overall long-term operating performance. We refer to our modified definition of FFO as AFFO. We exclude these items from GAAP net income to arrive at AFFO as they are not the primary drivers in our decision-making process and excluding these items provides investors a view of our portfolio performance over time and makes it more comparable to other REITs that are currently not engaged in acquisitions, mergers and restructuring, which are not part of our normal business operations. AFFO also reflects adjustments for unconsolidated partnerships and jointly owned investments. We use AFFO as one measure of our operating performance when we formulate corporate goals, evaluate the effectiveness of our strategies and determine executive compensation.

We believe that AFFO is a useful supplemental measure for investors to consider as we believe it will help them to better assess the sustainability of our operating performance without the potentially distorting impact of these short-term fluctuations. However, there are limits on the usefulness of AFFO to investors. For example, impairment charges and unrealized foreign currency losses that we exclude may become actual realized losses upon the ultimate disposition of the properties in the form of lower cash proceeds or other considerations. We use our FFO and AFFO measures as supplemental financial measures of operating performance. We do not use our FFO and AFFO measures as, nor should they be considered to be, alternatives to net income computed under GAAP, or as alternatives to net cash provided by operating activities computed under GAAP, or as indicators of our ability to fund our cash needs.

Pro Rata Cash NOI

Cash net operating income (“cash NOI”) is a non-GAAP financial measure that is intended to reflect the performance of our net leased and operating properties. We define cash NOI as cash rents from our leased and operating properties less non-reimbursable property expenses. Cash NOI excludes amortization of intangibles and straight-line rent adjustments that are included in GAAP lease revenues. We present cash NOI on a pro rata basis (“pro rata cash NOI”), to account for our share of income related to unconsolidated joint ventures and noncontrolling interests. We believe that pro rata cash NOI is a helpful measure that both investors and management can use to evaluate the financial performance of our leased and operating properties and it allows for comparison of our operating performance between periods and to other REITs. Pro rata cash NOI should not be considered as an alternative to net income as an indication of our financial performance or to cash flows as a measure of liquidity or our ability to fund all needs. The method by which we calculate and present cash NOI and/or pro rata cash NOI, may not be directly comparable to the way other REITs present such metrics.

Normalized Pro Rata Cash NOI

Normalized pro rata cash NOI is pro rata cash NOI as defined above adjusted primarily to exclude our pro rata share of cash NOI from properties disposed of during the most recent quarter and to include a full quarter of pro rata cash NOI related to properties acquired or capital investment projects completed during the period, as applicable. We also exclude an unstabilized hotel’s NOI since it is currently being renovated. We believe this measure provides a helpful representation of our net operating income from our in-place leased and operating properties.

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W. P. Carey Inc.

Appendix – Third Quarter 2019

Adjusted EBITDA

We believe that EBITDA is a useful supplemental measure to investors and analysts for assessing the performance of our business segments because (i) it removes the impact of our capital structure from our operating results and (ii) 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. Adjusted EBITDA as disclosed represents EBITDA, modified to include other adjustments to GAAP net income for certain non-cash charges, such as impairments, non-cash rent adjustments and unrealized gains and losses from our hedging activity. Additionally, we exclude gains and losses on sale of real estate, which are not considered fundamental attributes of our business plans and do not affect our overall long-term operating performance. We exclude these items from adjusted EBITDA as they are not the primary drivers in our decision-making process. For the three months ended December 31, 2018, we also modified adjusted EBITDA for the pro rata share of cash NOI for the partial period with an amount estimated to be equivalent to the additional pro rata share of cash NOI necessary to reflect ownership of properties acquired in the CPA:17 Merger for the full quarter; we also reduced adjusted EBITDA for advisory fees received from CPA:17 – Global during that quarter. Adjusted EBITDA reflects adjustments for unconsolidated partnerships and jointly owned investments. Our assessment of our operations is focused on long-term sustainability and not on such non-cash and non-core items, which may cause short-term fluctuations in net income but have no impact on cash flows. We believe that adjusted EBITDA is a useful supplemental measure to investors and analysts, although it does not represent net income that is computed in accordance with GAAP. Accordingly, adjusted EBITDA should not be considered as an alternative to net income or as an indicator of our financial performance. EBITDA and adjusted EBITDA as calculated by us may not be comparable to similarly titled measures of other companies.

Other Metrics

Pro Rata Metrics

This supplemental package contains certain metrics prepared under the pro rata consolidation method. We refer to these metrics as pro rata metrics. We have a number of investments, usually with our affiliates, in which our economic ownership is less than 100%. Under the full consolidation method, we report 100% of the assets, liabilities, revenues and expenses of those investments that are deemed to be under our control or for which we are deemed to be the primary beneficiary, even if our ownership is less than 100%. Also, for all other jointly owned investments, which we do not control, we report our net investment and our net income or loss from that investment. Under the pro rata consolidation method, we present our proportionate share, based on our economic ownership of these jointly owned investments, of the assets, liabilities, revenues and expenses of those investments. Multiplying each of our jointly owned investments’ financial statement line items by our percentage ownership and adding or subtracting those amounts from our totals, as applicable, may not accurately depict the legal and economic implications of holding an ownership interest of less than 100% in our jointly owned investments.

ABR

ABR represents contractual minimum annualized base rent for our net-leased properties, net of receivable reserves as determined by GAAP, and reflects exchange rates as of September 30, 2019. If there is a rent abatement, we annualize the first monthly contractual base rent following the free rent period. ABR is not applicable to operating properties and is presented on a pro rata basis.

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