Exhibit 99.1
W. P. CAREY INC.
Supplemental Unaudited Operating and Financial Data
As of September 30, 2012
Important Disclosures About this Supplemental Package
As used in this supplemental package, the terms “W. P. Carey,” “WPC” “the Company,” “we,” “us” and “our” include W. P. Carey Inc., its consolidated subsidiaries, and predecessors, unless otherwise indicated. “WPC LLC” means W. P. Carey & Co. LLC, our predecessor company. The “Merger” means our merger with Corporate Property Associates 15 Incorporated (“CPA®:15”) on September 28, 2012. “GAAP” means generally accepted accounting principles in the United States (“U.S.”). “CPA® REITs” means CPA®:15, Corporate Property Associates 16 — Global Incorporated (“CPA®:16 — Global”), and Corporate Property Associates 17 — Global Incorporated (“CPA®:17 — Global”). The “Managed REITs” means the CPA® REITs and Carey Watermark Investors Incorporated (“CWI”). Corporate Property Associates 14 Incorporated (“CPA®:14”) was one of the CPA® REITs until its merger with a subsidiary of CPA®:16 — Global on May 2, 2011 (the “CPA®:14/16 Merger”).
Important Note Regarding Non-GAAP Financial Measures
This supplemental package includes certain supplemental metrics that are not defined by GAAP (“non-GAAP”), including earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted EBITDA, funds from operations - as adjusted (“AFFO”), and total adjusted revenue. A description of these non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures are provided in this supplemental package.
Cautionary Statement Concerning Forward-Looking Statements:
Certain of the matters discussed in this communication constitute forward-looking statements within the meaning of the Federal securities laws. The forward-looking statements include, among other things, statements regarding the intent, belief or expectations of W. P. Carey Inc. (“W. P. Carey”) and can be identified by the use of words such as “may,” “will,” “should,” “would,” “assume,” “outlook,” “seek,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “estimate,” “forecast” and other comparable terms. These statements are based on the current expectations of the management of W. P. Carey. It is important to note that W. P. Carey’s actual results could be materially different from those projected in such forward-looking statements. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Other unknown or unpredictable factors could also have material adverse effects on future results, performance or achievements of W. P. Carey. Discussions of some of these other important factors and assumptions are contained in W. P. Carey & Co. LLC’s (the “Predecessor Registrant”) filings with the Securities and Exchange Commission (“SEC”) and are available at the SEC’s website at http://www.sec.gov, including the Predecessor Registrant’s Annual Report on Form 10-K for the year ended December 31, 2011 as filed with the SEC on February 29, 2012 and Exhibits 99.1 (Item 1A. Risk Factors) and 99.7 (Risk Factors Related to the REIT Conversion and Merger) to our Current Report on Form 8-K filed with the SEC on October 19, 2012. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this communication may not occur. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this communication. Except as required under the Federal securities laws and the rules and regulations of the SEC, W. P. Carey does not undertake any obligation to release publicly any revisions to the forward-looking statements to reflect events or circumstances after the date of this communication or to reflect the occurrence of unanticipated events.
W. P. CAREY INC.
Supplemental Unaudited Operating and Financial Data
As of September 30, 2012
Highlights |
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Company Overview | 1 |
Financial and Operational Statistics | 2 |
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Financial Information |
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Consolidated Balance Sheets | 3 |
Consolidated Statements of Income | 4 |
Combined Income Statement | 5 |
Reconciliation of Net Income to Funds from Operations - as Adjusted (AFFO) | 7 |
Combined Funds from Operations - as Adjusted (AFFO) | 10 |
Combined Adjusted EBITDA | 12 |
Total Adjusted Revenue (Pro Rata Basis) | 14 |
Total Adjusted Revenue - W.P. Carey Group | 16 |
Combined Company Lease Revenues and Property Expenses (Pro Rata Basis) | 17 |
Net Asset Value Information | 18 |
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Capitalization |
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Portfolio Debt Overview (Pro Rata Basis) | 19 |
Detailed Debt Summary (Pro Rata Basis) | 20 |
Selected Data for the Managed REITs | 23 |
Joint Venture Information | 24 |
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WPC Inc. Portfolio Information |
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Owned Portfolio Analysis - Diversification by Rent and Historical Occupancy (Pro Rata Basis) | 25 |
Owned Portfolio Analysis - Diversification by Property Type (Pro Rata Basis) | 26 |
Owned Portfolio Analysis - Diversification by Tenant Industry (Pro Rata Basis) | 27 |
Owned Portfolio Analysis - Diversification by Geography (Pro Rata Basis) | 28 |
Portfolio Lease Maturity Analysis (Pro Rata Basis) | 29 |
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2012 Investment Activity |
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Managed REITs - Acquisitions | 30 |
Managed REITs - Dispositions | 32 |
Owned Portfolio - Investments and Dispositions | 33 |
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Tenants by Annual Rent (Pro Rata Basis) | 34 |
W. P. CAREY INC.
Company Overview
September 30, 2012
Key Company Contacts |
| Executive Offices | |
Trevor P. Bond | President, Chief Executive Officer and Director | 50 Rockefeller Plaza | |
Mark J. DeCesaris | Chief Financial Officer and Director | New York, NY 10020 | |
Thomas E. Zacharias | Managing Director, Chief Operating Officer | Tel: 1-800-WPCAREY or (212) 492-1100 | |
Susan C. Hyde | Managing Director, Director of Investor Relations | Fax: (212) 492-8922 | |
Kristin A. Brown | Vice President, Investor Relations | Web Site Address: www.wpcarey.com | |
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Banks |
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Bank of America, N.A. | Administrative and Documentation Agent | ||
The Bank of New York Mellon | Syndication Agent | ||
JPMorgan Chase Bank, N.A. | Syndication Agent | ||
PNC Bank, N.A. | Syndication Agent | ||
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Analyst Coverage |
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Daniel P. Donlan | Janney Montgomery Scott LLC | ||
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| Third Quarter |
| Second Quarter |
| First Quarter |
| Fourth Quarter |
| Third Quarter |
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Stock Data (NYSE: WPC) |
| 2012 |
| 2012 |
| 2012 |
| 2011 |
| 2011 |
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High Price |
| $ | 53.85 |
| $ | 48.39 |
| $ | 49.70 |
| $ | 44.71 |
| $ | 42.72 |
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Low Price |
| 43.25 |
| 39.66 |
| 41.28 |
| 34.50 |
| 32.76 |
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Closing Price |
| 49.00 |
| 46.03 |
| 46.52 |
| 40.94 |
| 36.43 |
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Distributions declared per share - annualized |
| $ | 2.60 |
| $ | 2.27 |
| $ | 2.26 |
| $ | 2.25 |
| $ | 2.24 |
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Distribution yield (annualized distribution / closing stock price) |
| 5.31 | % | 4.93 | % | 4.86 | % | 5.50 | % | 6.15 | % | |||||
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Shares outstanding at quarter end |
| 68,566,888 | (a) | 40,358,186 |
| 40,312,460 |
| 39,729,018 |
| 39,717,286 |
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Market value of outstanding shares at quarter end (in thousands) |
| $ | 3,359,778 |
| $ | 1,857,687 |
| $ | 1,875,336 |
| $ | 1,626,506 |
| $ | 1,446,901 |
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(a) Reflects shares issued as consideration to CPA®:15 shareholders in connection with the Merger on September 28, 2012.
W. P. CAREY INC.
Financial and Operational Statistics (Unaudited)
As of and for the Nine Months Ended September 30, 2012
Market Capitalization |
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Shares Outstanding |
| 68,566,888 |
| |
Stock Price at end of Period |
| $ | 49.00 |
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Market Capitalization (Equity Capitalization) ($’000) |
| $ | 3,359,778 |
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Total Capitalization ($’000) (a) |
| $ | 5,495,658 |
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Enterprise Value ($’000) (b) |
| $ | 5,258,914 |
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High Stock Close Price |
| $ | 53.85 |
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Low Stock Close Price |
| $ | 43.25 |
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Financial Ratios |
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Debt to Total Capitalization |
| 38.9 | % | |
Net Debt to Total Capitalization |
| 34.6 | % | |
Net Debt to Enterprise Value |
| 36.1 | % | |
Annualized EBITDA ($’000) (c) |
| $ | 384,759 |
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Net Debt to Annualized EBITDA (c) (d) |
| 4.94 |
| |
Total Debt/Gross Assets |
| 43.5 | % | |
Unsecured Debt to Gross Assets |
| 8.5 | % | |
Interest Coverage |
| 3.58 |
| |
Combined Net G&A/Total Net Real Estate Revenues (e) |
| 10.9 | % | |
Dividend (Annualized) |
| $ | 2.60 |
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Dividend Payout |
| 70.1 | % | |
Weighted-Average Cost of Debt |
| 5.0 | % | |
Percent of Investment Grade Tenants |
| 32.2 | % |
Property Information |
| CPA®:16 — Global |
| CPA®:17 — Global |
| WPC |
|
Number of Properties (f) |
| 503 |
| 373 |
| 432 |
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Number of Tenants (f) |
| 145 |
| 57 |
| 134 |
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Total Square Feet (millions) |
| 47.6 |
| 33.0 |
| 39.3 |
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Occupancy |
| 96.4 | % | 100.0 | % | 98.5 | % |
Weighted-Average Lease Term (years) |
| 10.4 |
| 15.9 |
| 9.1 |
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(a) Represents market capitalization plus total debt.
(b) Represents total capitalization less cash and cash equivalents.
(c) Represents combined pro rata annualized adjusted EBITDA.
(d) Net debt represents total debt less cash and cash equivalents.
(e) Represents total combined annualized general and administrative expenses, net of Merger-related costs.
(f) Property and tenant count for WPC includes interests in self-storage and a hotel property that are held through its consolidated subsidiaries Carey Storage Management LLC and Livho, Inc., respectively.
W. P. CAREY INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands, except share amounts)
|
| September 30, 2012 |
| December 31, 2011 |
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Assets |
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Investments in real estate: |
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Real estate, at cost (inclusive of amounts attributable to consolidated variable interest entities (“VIEs”) of $48,893 and $41,032, respectively) |
| $ | 2,360,786 |
| $ | 646,482 |
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Operating real estate, at cost (inclusive of amounts attributable to consolidated VIEs of $0 and $26,318, respectively) |
| 110,109 |
| 109,875 |
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Accumulated depreciation (inclusive of amounts attributable to consolidated VIEs of $14,415 and $22,350, respectively) |
| (126,166 | ) | (135,175 | ) | ||
Net investments in properties |
| 2,344,729 |
| 621,182 |
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Net investments in direct financing leases |
| 373,544 |
| 58,000 |
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Equity investments in real estate and the Managed REITs |
| 575,189 |
| 538,749 |
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Net investments in real estate |
| 3,293,462 |
| 1,217,931 |
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Cash and cash equivalents (inclusive of amounts attributable to consolidated VIEs of $241 and $230, respectively) |
| 236,744 |
| 29,297 |
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Due from affiliates |
| 29,557 |
| 38,369 |
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Goodwill |
| 338,558 |
| 63,607 |
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Intangible assets, net (inclusive of amounts attributable to consolidated VIEs of $565 and $0, respectively) |
| 753,668 |
| 62,350 |
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Other assets, net (inclusive of amounts attributable to consolidated VIEs of $2,568 and $2,773, respectively) |
| 130,506 |
| 51,069 |
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Total assets |
| $ | 4,782,495 |
| $ | 1,462,623 |
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Liabilities and Equity |
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Liabilities: |
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Non-recourse and limited-recourse debt (inclusive of amounts attributable to consolidated VIEs of $18,175 and $14,261, respectively) |
| $ | 1,717,720 |
| $ | 356,209 |
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Senior credit facility |
| 418,160 |
| 233,160 |
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Accounts payable, accrued expenses and other liabilities (inclusive of amounts attributable to consolidated VIEs of $1,998 and $1,651, respectively) |
| 275,714 |
| 82,055 |
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Income taxes, net |
| 26,296 |
| 44,783 |
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Distributions payable |
| 44,301 |
| 22,314 |
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Total liabilities |
| 2,482,191 |
| 738,521 |
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Redeemable noncontrolling interest |
| 6,623 |
| 7,700 |
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Redeemable securities - related party |
| 60,000 |
| — |
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Equity: |
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W. P. Carey stockholders’ equity: |
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Listed shares of W. P. Carey & Co. LLC, no par value, 100,000,000 shares authorized; 0 and 39,729,018 shares issued and outstanding, respectively |
| — |
| — |
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Common stock of W. P. Carey Inc., $0.001 par value, 450,000,000 shares authorized; 68,566,888 and 0 shares issued and outstanding, respectively |
| 68 |
| — |
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Preferred stock of W. P. Carey Inc., $0.001 par value, 50,000,000 shares authorized; None issued |
| — |
| — |
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Additional paid-in-capital |
| 2,129,217 |
| 779,071 |
| ||
Distributions in excess of accumulated earnings |
| (141,573 | ) | (95,046 | ) | ||
Deferred compensation obligation |
| 8,379 |
| 7,063 |
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Accumulated other comprehensive loss |
| (9,265 | ) | (8,507 | ) | ||
Less, treasury stock at cost, 561,418 and 0 shares, respectively |
| (25,000 | ) | — |
| ||
Total W. P. Carey stockholders’ equity |
| 1,961,826 |
| 682,581 |
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Noncontrolling interests |
| 271,855 |
| 33,821 |
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Total equity |
| 2,233,681 |
| 716,402 |
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Total liabilities and equity |
| $ | 4,782,495 |
| $ | 1,462,623 |
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W. P. CAREY INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(in thousands, except share and per share amounts)
|
| Three Months Ended September 30, |
| Nine Months Ended September 30, |
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| 2012 |
| 2011 |
| 2012 |
| 2011 |
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Revenues |
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Asset management revenue |
| $ | 15,850 |
| $ | 14,840 |
| $ | 47,088 |
| $ | 51,279 |
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Structuring revenue |
| 8,316 |
| 21,221 |
| 19,576 |
| 42,901 |
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Incentive, termination and subordinated disposition revenue |
| — |
| — |
| — |
| 52,515 |
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Wholesaling revenue |
| 4,012 |
| 2,586 |
| 11,878 |
| 8,788 |
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Reimbursed costs from affiliates |
| 19,879 |
| 14,707 |
| 59,100 |
| 49,485 |
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Lease revenues |
| 16,714 |
| 17,001 |
| 51,265 |
| 46,682 |
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Other real estate income |
| 6,265 |
| 6,303 |
| 19,089 |
| 17,212 |
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| 71,036 |
| 76,658 |
| 207,996 |
| 268,862 |
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Operating Expenses |
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General and administrative |
| (54,826 | ) | (25,187 | ) | (108,317 | ) | (71,095 | ) | ||||
Reimbursable costs |
| (19,879 | ) | (14,707 | ) | (59,100 | ) | (49,485 | ) | ||||
Depreciation and amortization |
| (6,571 | ) | (6,323 | ) | (19,928 | ) | (16,552 | ) | ||||
Property expenses |
| (2,426 | ) | (3,231 | ) | (7,863 | ) | (8,547 | ) | ||||
Other real estate expenses |
| (2,600 | ) | (2,725 | ) | (7,530 | ) | (8,224 | ) | ||||
Impairment charges |
| (5,535 | ) | — |
| (5,535 | ) | — |
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| (91,837 | ) | (52,173 | ) | (208,273 | ) | (153,903 | ) | ||||
Other Income and Expenses |
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Other interest income |
| 252 |
| 323 |
| 910 |
| 1,558 |
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Income from equity investments in real estate and the Managed REITs |
| 10,477 |
| 16,068 |
| 52,808 |
| 37,356 |
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Gain on change in control of interests |
| 20,794 |
| — |
| 20,794 |
| 27,859 |
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Other income and (expenses) |
| 502 |
| (294 | ) | 2,026 |
| 4,945 |
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Interest expense |
| (7,868 | ) | (5,989 | ) | (22,459 | ) | (15,660 | ) | ||||
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| 24,157 |
| 10,108 |
| 54,079 |
| 56,058 |
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Income from continuing operations before income taxes |
| 3,356 |
| 34,593 |
| 53,802 |
| 171,017 |
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Provision for income taxes |
| (379 | ) | (5,929 | ) | (192 | ) | (38,526 | ) | ||||
Income from continuing operations |
| 2,977 |
| 28,664 |
| 53,610 |
| 132,491 |
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Discontinued Operations |
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(Loss) income from operations of discontinued properties |
| (342 | ) | 916 |
| (870 | ) | 1,146 |
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(Loss) gain on sale of real estate |
| (409 | ) | 612 |
| (888 | ) | 1,272 |
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Impairment charges |
| — |
| (4,934 | ) | (6,727 | ) | (4,975 | ) | ||||
Loss from discontinued operations, net of tax |
| (751 | ) | (3,406 | ) | (8,485 | ) | (2,557 | ) | ||||
Net Income |
| 2,226 |
| 25,258 |
| 45,125 |
| 129,934 |
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Add: Net loss attributable to noncontrolling interests |
| 325 |
| 581 |
| 1,383 |
| 1,295 |
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Less: Net loss (income) attributable to redeemable noncontrolling interest |
| 37 |
| (637 | ) | 146 |
| (1,241 | ) | ||||
Net Income Attributable to W. P. Carey Common Stockholders |
| $ | 2,588 |
| $ | 25,202 |
| $ | 46,654 |
| $ | 129,988 |
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Basic Earnings Per Share |
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Income from continuing operations attributable to W. P. Carey common stockholders |
| $ | 0.08 |
| $ | 0.70 |
| $ | 1.35 |
| $ | 3.28 |
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Loss from discontinued operations attributable to W. P. Carey common stockholders |
| (0.02 | ) | (0.08 | ) | (0.21 | ) | (0.06 | ) | ||||
Net income attributable to W. P. Carey common stockholders |
| $ | 0.06 |
| $ | 0.62 |
| $ | 1.14 |
| $ | 3.22 |
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Diluted Earnings Per Share |
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Income from continuing operations attributable to W. P. Carey common stockholders |
| $ | 0.08 |
| $ | 0.70 |
| $ | 1.33 |
| $ | 3.25 |
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Loss from discontinued operations attributable to W. P. Carey common stockholders |
| (0.02 | ) | (0.08 | ) | (0.21 | ) | (0.06 | ) | ||||
Net income attributable to W. P. Carey common stockholders |
| $ | 0.06 |
| $ | 0.62 |
| $ | 1.12 |
| $ | 3.19 |
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Weighted Average Shares Outstanding |
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Basic |
| 40,366,298 |
| 39,861,064 |
| 40,398,433 |
| 39,794,506 |
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Diluted |
| 41,127,404 |
| 40,404,520 |
| 41,029,578 |
| 40,424,316 |
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Amounts Attributable to W. P. Carey Common Stockholders |
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Income from continuing operations, net of tax |
| $ | 3,339 |
| $ | 28,608 |
| $ | 55,139 |
| $ | 132,545 |
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Loss from discontinued operations, net of tax |
| (751 | ) | (3,406 | ) | (8,485 | ) | (2,557 | ) | ||||
Net income |
| $ | 2,588 |
| $ | 25,202 |
| $ | 46,654 |
| $ | 129,988 |
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Distributions Declared Per Common Share |
| $ | 0.650 |
| $ | 0.560 |
| $ | 1.782 |
| $ | 1.622 |
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(a) | Income from equity investments in real estate and the Managed REITs includes income from our equity investments in real estate of $24.7 million, income from our ownership in the CPA®: REITs of $5.7 million and income from our GP interest in the CPA® REITs of $22.4 million. |
W. P. CAREY INC.
COMBINED INCOME STATEMENT (HISTORICAL BASIS) (UNAUDITED) (a)
(in thousands, except share and per share amounts)
The following financial information is for illustrative purposes only. The combined company financial information has not been prepared in accordance with GAAP as management has determined the adjustments. Each company’s individual historical financial information has been prepared in accordance with GAAP. We believe it is useful to investors to show combined company financial information, particularly since CPA®:15 will not be filing a Form 10-Q for the quarter ended September 30, 2012 because the Merger occurred before the end of that quarter.
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| Nine Months Ended September 30, 2012 |
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| Combined |
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| Historical |
| Historical |
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| Company on |
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| WPC (b) |
| CPA® 15 (c) |
| Adjustments |
| Notes |
| Historical Basis |
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Revenues |
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Asset management revenue |
| $ | 47,088 |
| $ | — |
| $ | (18,545 | ) | (d) |
| $ | 28,543 |
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Structuring revenue |
| 19,576 |
| — |
| — |
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| 19,576 |
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Wholesaling revenue |
| 11,878 |
| — |
| — |
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| 11,878 |
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Reimbursed costs from affiliates |
| 59,100 |
| — |
| (3,018 | ) | (d) |
| 56,082 |
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Lease revenues |
| 51,265 |
| 147,469 |
| 17,127 |
| (e) |
| 215,861 |
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Interest income from direct financing leases |
| — |
| 21,564 |
| — |
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| 21,564 |
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Other real estate income |
| 19,089 |
| — |
| — |
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| 19,089 |
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Other operating income |
| — |
| 10,083 |
| — |
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| 10,083 |
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Total revenues |
| 207,996 |
| 179,116 |
| (4,436 | ) |
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| 382,676 |
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Operating Expenses |
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General and administrative |
| (108,317 | ) | (11,199 | ) | 37,604 |
| (d) (f) |
| (81,912 | ) | ||||
Reimbursable costs |
| (59,100 | ) | — |
| — |
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| (59,100 | ) | ||||
Depreciation and amortization |
| (19,928 | ) | (36,849 | ) | (2,479 | ) | (e) |
| (59,256 | ) | ||||
Property expenses |
| (7,863 | ) | (27,258 | ) | 18,505 |
| (d) (f) |
| (16,616 | ) | ||||
Other real estate expenses |
| (7,530 | ) | — |
| — |
|
|
| (7,530 | ) | ||||
Impairment charges |
| (5,535 | ) | — |
| — |
|
|
| (5,535 | ) | ||||
Total operating expenses |
| (208,273 | ) | (75,306 | ) | 53,630 |
|
|
| (229,949 | ) | ||||
Other Income and Expenses |
|
|
|
|
|
|
|
|
|
|
| ||||
Other interest income |
| 910 |
| 1,907 |
| 29 |
|
|
| 2,846 |
| ||||
Income from equity investments in real estate and the REITs (i) |
| 52,808 |
| 13,918 |
| (29,734) |
| (e) (g) |
| 36,992 |
| ||||
Gain on change in control of interest |
| 20,794 |
| — |
| — |
|
|
| 20,794 |
| ||||
Other income and (expenses) |
| 2,026 |
| 3,016 |
| — |
|
|
| 5,042 |
| ||||
Interest expense |
| (22,459 | ) | (54,000 | ) | (4,196 | ) |
|
| (80,655 | ) | ||||
Total other income and expenses |
| 54,079 |
| (35,159 | ) | (33,901 | ) |
|
| (14,981 | ) | ||||
Income from continuing operations before income taxes |
| 53,802 |
| 68,651 |
| 15,293 |
|
|
| 137,746 |
| ||||
Benefit from (provision for) income taxes |
| (192 | ) | (2,234 | ) | 7,666 |
|
|
| 5,240 |
| ||||
Income from continuing operations |
| 53,610 |
| 66,417 |
| 22,959 |
|
|
| 142,986 |
| ||||
(Loss) income from discontinued properties |
| (8,485 | ) | 33,512 |
| — |
|
|
| 25,027 |
| ||||
Net Income |
| 45,125 |
| 99,929 |
| 22,959 |
|
|
| 168,013 |
| ||||
Add: Net loss (income) attributable to noncontrolling interests |
| 1,383 |
| (32,943 | ) | 17,075 |
| (h) |
| (14,485 | ) | ||||
Less: Net loss attributable to redeemable noncontrolling interest |
| 146 |
| — |
| — |
|
|
| 146 |
| ||||
Net Income Attributable to W. P. Carey Common Stockholders |
| $ | 46,654 |
| $ | 66,986 |
| $ | 40,034 |
|
|
| $ | 153,674 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Basic Earnings Per Share |
|
|
|
|
|
|
|
|
|
|
| ||||
Income from continuing operations attributable to W. P. Carey common stockholders |
| $ | 1.35 |
|
|
|
|
|
|
| $ | 1.86 |
| ||
|
|
|
|
|
|
|
|
|
|
|
| ||||
Diluted Earnings Per Share |
|
|
|
|
|
|
|
|
|
|
| ||||
Income from continuing operations attributable to W. P. Carey common stockholders |
| $ | 1.33 |
|
|
|
|
|
|
| $ | 1.85 |
|
(a) The unaudited combined income statement for the nine months ended September 30, 2012 reflects WPC’s results as if the Merger had occurred on January 1, 2011.
(b) Represents WPC’s income statement for the nine months ended September 30, 2012 on a historical basis.
(c) Represents CPA®:15’s income statement for the nine months ended September 30, 2012 on a historical basis.
(d) To eliminate inter-company activity between WPC and CPA®:15, specifically asset management revenues and the offsetting property expenses, as well as reimbursed costs.
(e) To record Hologic, formerly recorded as an equity investment by each Merger party, as a consolidated entity.
(f) To reverse $33.7 million of merger costs.
(g) To eliminate WPC’s equity investments in CPA®:15 and properties previously consolidated by CPA®:15.
(h) To reverse the income recorded in noncontrolling interest on CPA®:15’s books related to the four joint ventures that are now consolidated.
(i) Income from equity investments in real estate and the Managed REITs for WPC includes income from equity investments in real estate of $24.7 million, income from ownership in the Managed REITs of $5.7 million, and income from the GP interest in the CPA® REITs of $22.4 million.
W. P. Carey Inc. 9/30/2012 Supplemental 8-K — 6
W. P. CAREY INC.
Reconciliation of Net Income to Funds from Operations — as Adjusted (AFFO) (Unaudited)
(in thousands, except share and per share amounts)
|
| Three Months Ended |
| Nine Months Ended September 30, |
| |||||||||||||||||
|
| September 30, 2012 |
| June 30, 2012 |
| March 31, 2012 |
| December 31, 2011 |
| September 30, 2011 |
| 2012 |
| 2011 |
| |||||||
Investment Management |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Net Income from investment management attributable to W. P. Carey common stockholders (a) |
| $ | 661 |
| $ | 3,410 |
| $ | 3,197 |
| $ | 3,705 |
| $ | 9,112 |
| $ | 7,266 |
| $ | 49,075 |
|
FFO - as defined by NAREIT (b) |
| 661 |
| 3,410 |
| 3,197 |
| 3,705 |
| 9,112 |
| 7,266 |
| 49,075 |
| |||||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Amortization and other non-cash charges |
| 247 |
| 230 |
| 258 |
| (1,256 | ) | (1,263 | ) | 735 |
| 3,021 |
| |||||||
Stock based compensation |
| 9,461 |
| 4,286 |
| 5,067 |
| 4,633 |
| 4,340 |
| 18,813 |
| 12,869 |
| |||||||
Deferred tax expense |
| (15,207 | ) | (8,459 | ) | 2,236 |
| (80 | ) | 1,876 |
| (21,430 | ) | 14,119 |
| |||||||
Realized losses (gains) on foreign currency, derivatives and other |
| 17 |
| (23 | ) | — |
| — |
| — |
| (6 | ) | — |
| |||||||
Amortization of deferred financing costs |
| 308 |
| 286 |
| 283 |
| — |
| — |
| 879 |
| — |
| |||||||
Total adjustments |
| (5,174 | ) | (3,680 | ) | 7,844 |
| 3,297 |
| 4,953 |
| (1,009 | ) | 30,009 |
| |||||||
AFFO - Investment Management |
| $ | (4,513 | ) | $ | (270 | ) | $ | 11,041 |
| $ | 7,002 |
| $ | 14,065 |
| $ | 6,257 |
| $ | 79,084 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Real Estate Ownership |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Net Income from real estate ownership attributable to W. P. Carey common stockholders (a) |
| $ | 1,927 |
| $ | 28,367 |
| $ | 9,093 |
| $ | 5,386 |
| $ | 16,090 |
| $ | 39,388 |
| $ | 80,913 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Depreciation and amortization of real property |
| 5,510 |
| 5,673 |
| 6,147 |
| 8,415 |
| 6,194 |
| 17,330 |
| 16,909 |
| |||||||
Impairment charges |
| 5,534 |
| 1,003 |
| 5,724 |
| 5,498 |
| 4,934 |
| 12,262 |
| 4,975 |
| |||||||
(Gain) loss on sale of real estate, net |
| (59 | ) | (1,686 | ) | 181 |
| 3,655 |
| 396 |
| (1,564 | ) | (264 | ) | |||||||
Proportionate share of adjustments to equity in net income of partially-owned entities to arrive at FFO: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Depreciation and amortization of real property |
| 707 |
| 730 |
| 898 |
| 1,208 |
| 1,173 |
| 2,335 |
| 4,049 |
| |||||||
Impairment charges |
| — |
| — |
| — |
| — |
| — |
| — |
| 1,090 |
| |||||||
Loss (gain) on sale of real estate, net |
| 181 |
| (15,557 | ) | 142 |
| — |
| — |
| (15,234 | ) | 34 |
| |||||||
Proportionate share of adjustments for noncontrolling interests to arrive at FFO |
| (400 | ) | (434 | ) | (434 | ) | (508 | ) | (1,157 | ) | (1,268 | ) | (1,477 | ) | |||||||
Total adjustments |
| 11,473 |
| (10,271 | ) | 12,658 |
| 18,268 |
| 11,540 |
| 13,861 |
| 25,316 |
| |||||||
FFO - as defined by NAREIT |
| 13,400 |
| 18,096 |
| 21,751 |
| 23,654 |
| 27,630 |
| 53,249 |
| 106,229 |
| |||||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Gain on change in control of interests (b) (c) |
| (20,794 | ) | — |
| — |
| — |
| — |
| (20,794 | ) | (27,859 | ) | |||||||
Gain on deconsolidation of a subsidiary |
| — |
| — |
| — |
| — |
| (1,008 | ) | — |
| (1,008 | ) | |||||||
Other (gains) losses, net |
| — |
| — |
| — |
| (1,118 | ) | 135 |
| — |
| — |
| |||||||
Other depreciation, amortization and non-cash charges |
| (130 | ) | 235 |
| (212 | ) | 3,398 |
| 2,717 |
| (106 | ) | (53 | ) | |||||||
Stock based ccompensation |
| 344 |
| 209 |
| 194 |
| 57 |
| 53 |
| 747 |
| 157 |
| |||||||
Deferred taxes |
| (917 | ) | (532 | ) | (651 | ) | (2,602 | ) | (2,602 | ) | (2,101 | ) | (2,602 | ) | |||||||
Realized losses on foreign currency, derivatives and other |
| 115 |
| 542 |
| — |
| — |
| — |
| 657 |
| — |
| |||||||
Amortization of deferred financing costs |
| 509 |
| 402 |
| 464 |
| — |
| — |
| 1,375 |
| — |
| |||||||
Straight-line and other rent adjustments |
| (200 | ) | (883 | ) | (1,115 | ) | (1,804 | ) | (1,014 | ) | (2,198 | ) | (2,451 | ) | |||||||
Above-market rent intangible lease amortization, net |
| 51 |
| 111 |
| — |
| — |
| — |
| 162 |
| — |
| |||||||
Merger expenses |
| 35,570 |
| 2,616 |
| 2,103 |
| — |
| — |
| 40,289 |
| — |
| |||||||
Proportionate share of adjustments to equity in net income of partially owned entities to arrive at AFFO: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Straight-line and other rent adjustments |
| (25 | ) | (363 | ) | (413 | ) | (414 | ) | (463 | ) | (801 | ) | (1,227 | ) | |||||||
Below-market rent intangible lease amortization, net |
| — |
| (3 | ) | — |
| — |
| — |
| (3 | ) | — |
| |||||||
AFFO adjustments to equity earnings from equity investments |
| 10,650 |
| 7,687 |
| 6,926 |
| 6,982 |
| 1,978 |
| 25,263 |
| 3,155 |
| |||||||
Proportionate share of adjustments for noncontrolling interests to arrive at AFFO |
| (141 | ) | (25 | ) | (19 | ) | 54 |
| 59 |
| (186 | ) | 218 |
| |||||||
Total adjustments |
| 25,032 |
| 9,996 |
| 7,277 |
| 4,553 |
| (145 | ) | 42,304 |
| (31,670 | ) | |||||||
AFFO - Real Estate Ownership |
| $ | 38,432 |
| $ | 28,092 |
| $ | 29,028 |
| $ | 28,207 |
| $ | 27,485 |
| $ | 95,553 |
| $ | 74,559 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total Company |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
FFO - as defined by NAREIT |
| $ | 14,061 |
| $ | 21,506 |
| $ | 24,948 |
| $ | 27,359 |
| $ | 36,742 |
| $ | 60,515 |
| $ | 155,304 |
|
FFO - as defined by NAREIT (diluted) |
| $ | 0.34 |
| $ | 0.53 |
| $ | 0.62 |
| $ | 0.68 |
| $ | 0.91 |
| $ | 1.47 |
| $ | 3.84 |
|
AFFO |
| $ | 33,919 |
| $ | 27,822 |
| $ | 40,069 |
| $ | 35,209 |
| $ | 41,550 |
| $ | 101,810 |
| $ | 153,643 |
|
AFFO per share (diluted) |
| $ | 0.82 |
| $ | 0.68 |
| $ | 0.99 |
| $ | 0.88 |
| $ | 1.03 |
| $ | 2.48 |
| $ | 3.80 |
|
Diluted weighted average shares outstanding |
| 41,127,404 |
| 40,757,055 |
| 40,487,652 |
| 40,152,444 |
| 40,404,520 |
| 41,029,578 |
| 40,424,316 |
|
(a) | Effective April 1, 2012, we include cash distributions and deferred revenue received and earned from the operating partnerships of CPA®:16 — Global, CPA®:17 — Global and CWI in our Real Estate Ownership segment. Results of operations for the prior year periods have been reclassified to conform to the current period presentation. Additionally, during the third quarter of 2011, CPA®:16 — Global finalized its assessment of the fair values of the assets acquired and liabilities assumed in connection with the CPA®:14/16 Merger and made certain adjustments during that quarter. Our proportionate share of the adjustments before income taxes was approximately $2.6 million. In accordance with current accounting guidance, we have retrospectively adjusted our results of operations in our Real Estate Ownership segment for the three and nine months ended September 30, 2011 to include such adjustments. |
(b) | Gain on change in control of interests for the nine months ended September 30, 2011 represents gain recognized on purchase of the remaining interests in two investments from CPA®:14, which we had previously accounted for under the equity method. In connection with purchasing these properties, we recognized a net gain of $27.9 million during the nine months ended September 30, 2011 to adjust the carrying value of our existing interests in these investments to their estimated fair values. |
(c) | Gain on change in control of interests for the three and nine months ended September 30, 2012 represents a gain of $14.7 million recognized on our previously held interest in shares of CPA®:15 common stock, and a gain of $6.1 million recognized on the purchase of the remaining interests in five investments from CPA®:15, which we had |
| previously accounted for under the equity method. We recognized a net gain of $20.8 million to adjust the carrying value of our existing interests in these investments to their estimated fair values. |
Non-GAAP Financial Disclosure — AFFO
FFO is a non-GAAP measure defined by NAREIT. NAREIT defines FFO as net income or loss (as computed in accordance with GAAP) excluding: depreciation and amortization expense from real estate assets, impairment charges on real estate, gains or losses from sales of depreciated real estate assets and extraordinary items; however, FFO related to assets held for sale, sold or otherwise transferred and included in the results of discontinued operations are included. These adjustments also incorporate the pro rata share of unconsolidated subsidiaries. FFO is used by management, investors and analysts to facilitate meaningful comparisons of operating performance between periods and among our peers. Although NAREIT has published this definition of FFO, companies often modify this definition as they seek to provide financial measures that meaningfully reflect their distinctive operations.
We modify the NAREIT computation of FFO to include other adjustments to GAAP net income to adjust for certain non-cash charges such as amortization of intangibles, deferred income tax benefits and expenses, straight-line rents, stock compensation, gains or losses from extinguishment of debt and deconsolidation of subsidiaries and unrealized foreign currency exchange gains and losses. We refer to our modified definition of FFO as AFFO. We exclude these items from GAAP net income as they are not the primary drivers in our decision making process. Our assessment of our operations is focused on long-term sustainability and not on such non-cash items, which may cause short-term fluctuations in net income but have no impact on cash flows, and we therefore use AFFO as one measure of our operating performance when we formulate corporate goals, evaluate the effectiveness of our strategies, and determine executive compensation. We believe that AFFO is a useful supplemental measure for investors to consider because 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.
W. P. Carey Inc. 9/30/2012 Supplemental 8-K — 9
W. P. CAREY INC.
Combined Funds from Operations — as Adjusted (AFFO) (Unaudited)
(in thousands, except share and per share amounts)
W. P. Carey Shares at September 30, 2012 |
|
|
|
WPC LLC 2012 Weighted Avg. Standalone Shares prior to Merger (a) |
| 40,828,647 |
|
Shares Issued in the Merger |
| 28,170,643 |
|
WPC Shares Outstanding |
| 68,999,290 |
|
|
|
|
| YTD Sept. 2012 |
| $ / Shares |
| Cumulative |
| YTD Sept. 2012 |
| Annualized |
| |||||
|
|
|
| $ Amount |
| Impact |
| Acc / (Dil) |
| AFFO / Share |
| AFFO / Share |
| |||||
Combined AFFO Calculation |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
WPC AFFO (b) |
|
|
| $ | 101,811 |
| $ | 2.49 |
|
|
| $ | 2.49 |
| $ | 3.32 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Primary Accretion / (Dilution) Drivers |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
1. Dilutive Impact of New Share Issuance |
|
|
| — |
| (1.02 | ) | (1.02 | ) | 1.48 |
| 1.97 |
| |||||
2. CPA®:15 Contribution to WPC AFFO (c) |
|
|
| 85,448 |
| 1.24 |
| 0.22 |
| 2.71 |
| 3.62 |
| |||||
3. (+) Provision for income taxes (d) |
| Tax savings from foregone asset management revenues |
| 10,461 |
| 0.15 |
| 0.37 |
| 2.87 |
| 3.82 |
| |||||
4. (+) Deferred taxes (d) |
| Lost taxes deferred on CPA®:15 management fees paid in shares |
| 2,200 |
| 0.03 |
| 0.40 |
| 2.90 |
| 3.86 |
| |||||
5. (+) Distributions from equity investments in the CPA® REITs (e) |
| Foregone AFFO proceeds from WPC’s CPA®:15 investment |
| (6,765 | ) | (0.10 | ) | 0.31 |
| 2.80 |
| 3.73 |
| |||||
Adjustments for Primary Accretion / (Dilution) Drivers |
|
|
| 91,344 |
| 0.31 |
| 0.31 |
| 2.80 |
| 3.73 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Acquisition Debt Interest Expense Impact |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
6. (-) Interest expense (f) |
| Acquisition debt interest expense |
| (1,261 | ) | (0.02 | ) | 0.29 |
| 2.78 |
| 3.71 |
| |||||
Adjustments for Acquisition Debt Interest Expense Impact |
|
|
| (1,261 | ) | (0.02 | ) | 0.29 |
| 2.78 |
| 3.71 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Elimination of Asset Management Fees |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
7. (-) Asset management revenue (g) |
| WPC fee revenues no longer received from CPA®:15 |
| (18,545 | ) | (0.27 | ) | 0.02 |
| 2.51 |
| 3.35 |
| |||||
8. (+) Property expenses (g) |
| CPA®:15 management fee expense no longer paid to WPC |
| 18,545 |
| 0.27 |
| 0.29 |
| 2.78 |
| 3.71 |
| |||||
Adjustments for Elimination of Management Fees |
|
|
| — |
| — |
| 0.29 |
| 2.78 |
| 3.71 |
| |||||
Combined AFFO |
|
|
| $ | 191,894 |
| $ | 2.78 |
| $ | 0.29 |
| $ | 2.78 |
| $ | 3.71 |
|
(a) | For purposes of calculating the AFFO per share on a WPC standalone basis, the weighted average shares outstanding prior to the Merger are used, and therefore the weighted average shares outstanding do not correspond to the weighted average shares outstanding as disclosed in the W. P. Carey Inc. Form 10-Q for the period ended September 30, 2012 as that calculation reflects the impact of the additional shares issued due to the Merger. |
(b) | See Page 7 for a reconciliation of W.P. Carey Inc.’s Net Income for the nine months ended September 30, 2012 to Funds from Operations — as Adjusted (AFFO), as disclosed in its Form 10-Q for the period ended September 30, 2012. |
(c) | CPA®:15’s contribution to W. P. Carey Inc.’s AFFO represents MFFO of $85.8 million, reduced by $0.3 million related to acquisition expenses and accretion of discounts and amortization of premiums on debt investments. |
(d) | As a result of the merger of CPA®:15 and W. P. Carey Inc., asset management and other taxable revenues have been eliminated. The adjustments of $10.5 million and $2.2 million for the nine months ended September 30, 2012 reflect tax benefits related to the elimination of these transactions. |
(e) | Reflects adjustment to eliminate the impact on AFFO of distributions from W. P. Carey’s equity investment in CPA®:15 pursuant to the Merger. |
(f) | Reflects an increase in interest expense of $1.3 million for the nine months ended September 30, 2012 from the new $175 million Term Loan used to pay for the cash portion of the Merger consideration. The interest rate under the Term Loan Facility is not materially different from the interest rate under the previous line of credit. |
(g) | Reflects adjustments to eliminate activities between W. P. Carey Inc. and CPA®:15 in the respective historical financial statements, as all such revenues, expenses and interests would have been eliminated in consolidation had the Merger occurred on January 1, 2011. |
W. P. Carey Inc. 9/30/2012 Supplemental 8-K — 11
W. P. CAREY INC.
Combined Adjusted EBITDA (Unaudited)
(in thousands, except per share amounts)
|
|
|
|
|
| Cumulative |
|
|
|
|
| |||||
|
| YTD Sept. 2012 |
| $ / Share |
| Accretion/ |
| YTD Sept. 2012 |
| Annualized |
| |||||
|
| $ Amount |
| Impact |
| (Dilution) |
| Adjusted EBITDA / Share |
| Adjusted EBITDA / Share |
| |||||
WPC Adjusted EBITDA Calculation |
|
|
|
|
|
|
|
|
|
|
| |||||
WPC LLC EBITDA (a) |
| $ | 90,211 |
| $ | 2.21 |
|
|
| $ | 2.21 |
| $ | 2.95 |
| |
|
|
|
|
|
|
|
|
|
|
|
| |||||
Proportionate share of adjustments for joint ventures |
|
|
|
|
|
|
|
|
|
|
| |||||
1. Proportionate share of adjustments from equity method investments (b) |
| 43,599 |
| 1.07 |
|
|
| 3.28 |
| 4.37 |
| |||||
2. Proportionate share of adjustments for noncontrolling interests (b) |
| (431 | ) | (0.01 | ) |
|
| 3.27 |
| 4.36 |
| |||||
Adjustment for joint ventures |
| 43,169 |
| 1.06 |
|
|
| 3.27 |
| 4.36 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Management adjustments (c) |
|
|
|
|
|
|
|
|
|
|
| |||||
3. (+) Impairments |
| 12,262 |
| 0.30 |
|
|
| 3.57 |
| 4.76 |
| |||||
4. (-) Gain on sale |
| (1,564 | ) | (0.04 | ) |
|
| 3.53 |
| 4.71 |
| |||||
5. (+) Stock compensation |
| 19,010 |
| 0.47 |
|
|
| 3.99 |
| 5.33 |
| |||||
6. (+) Realized and unrealized loss on FX and derivatives |
| 545 |
| 0.01 |
|
|
| 4.01 |
| 5.34 |
| |||||
7. (+) Merger expenses |
| 30,614 |
| 0.75 |
|
|
| 4.76 |
| 6.34 |
| |||||
8. (-) Gain on change in control of interests |
| (20,794 | ) | (0.51 | ) |
|
| 4.25 |
| 5.66 |
| |||||
9. (-) Proportionate share of adjustments from equity method investments (d) |
| (8,938 | ) | (0.22 | ) |
|
| 4.03 |
| 5.37 |
| |||||
10. (-) Proportionate share of adjustments for noncontrolling interests (d) |
| (176 | ) | (0.00 | ) |
|
| 4.03 |
| 5.37 |
| |||||
Management adjustments |
| 30,960 |
| 0.76 |
|
|
| 4.03 |
| 5.37 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
CPA®:15 contribution to EBITDA |
|
|
|
|
|
|
|
|
|
|
| |||||
9. (+) CPA®:15 EBITDA (e) |
| 161,298 |
| 2.34 |
| 2.34 |
| 6.36 |
| 8.48 |
| |||||
10. Proportionate share of adjustments from equity method investments (b) |
| 17,182 |
| 0.25 |
| 2.59 |
| 6.61 |
| 8.82 |
| |||||
11. Proportionate share of adjustments for noncontrolling interests (b) |
| (22,995 | ) | (0.33 | ) | 2.25 |
| 6.28 |
| 8.37 |
| |||||
12. (-) Management adjustments (c) |
| (20,599 | ) | (0.30 | ) | 1.95 |
| 5.98 |
| 7.97 |
| |||||
CPA®:15 contribution to EBITDA |
| 134,886 |
| 1.95 |
| 1.95 |
| 5.98 |
| 7.97 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Consolidation Adjustments |
|
|
|
|
|
|
|
|
|
|
| |||||
13. Dilutive impact of new shares issuance |
| — |
| (1.64 | ) | 0.31 |
| 4.34 |
| 5.78 |
| |||||
14. (-) Elimination of LLC’s ownership in CPA®:15’s pro rata Adjusted EBITDA (f) |
| (10,656 | ) | (0.15 | ) | 0.16 |
| 4.18 |
| 5.58 |
| |||||
Consolidated adjustments |
| (10,656 | ) | (1.80 | ) | 0.16 |
| 4.18 |
| 5.58 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Combined Adjusted EBITDA |
| $ | 288,569 |
| $ | 4.18 |
| $ | 0.16 |
| $ | 4.18 |
| $ | 5.58 |
|
(a) Represents historical financial information of WPC for the nine months ended September 30, 2012.
(b) Incorporates the prorata share of depreciation, amortization, interest and tax provision adjustments for unconsolidated subsidiaries and joint ventures.
(c) Represents adjustments to EBITDA to add impairments, stock compensation, merger expenses, gain or losses on the sale of real estate, as well as to add back the impact of realized and unrealized gains/losses related to foreign exchange and derivatives.
(d) Incorporates the prorata share of management adjustments as described above for unconsolidated subsidiaries and joint ventures.
(e) Reflects adjustments to eliminate WPC’s 7.9% ownership in CPA®:15.
Non-GAAP Financial Disclosure — Adjusted EBITDA
Adjusted EBITDA as disclosed represents EBITDA, or earnings before interest, taxes, depreciation and amortization, modified to include other adjustments to GAAP net income for certain non-cash charges such as impairments and stock compensation. Additionally, we exclude merger expenses related to the Merger with CPA®:15 which are considered non-recurring and gain/losses in real estate, foreign exchange and derivatives which are not considered fundamentals 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. 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. We believe that Adjusted EBITDA is a useful supplemental measure to investors and analysts for assessing the performance of our business segments, although it does not represent net income that is computed in accordance with GAAP. Accordingly, Adjusted EBITDA should not be considered as an alternative to net income as an indicator of our financial performance. Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Therefore, we use Adjusted EBITDA as one measure of our operating performance when we formulate corporate goals and evaluate the effectiveness of our strategies.
W. P. Carey Inc. 9/30/2012 Supplemental 8-K — 13
W. P. CAREY INC.
Total Adjusted Revenue (Pro Rata Basis) (Unaudited)
(in thousands, except percentages)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three Months Ended |
| Nine Months Ended September 30, |
| |||||||||||||||||||||||||||||||
|
| September 30, 2012 |
| June 30, 2012 |
| March 31, 2012 |
| December 31, 2011 (f) |
| September 30, 2011 (f) |
| 2012 |
| 2011 (f) |
| |||||||||||||||||||||
|
| Revenue |
| % |
| Revenue |
| % |
| Revenue |
| % |
| Revenue |
| % |
| Revenue |
| % |
| Revenue |
| % |
| Revenue |
| % |
| |||||||
Asset management revenue |
| $ | 15,850 |
| 20 | % | $ | 15,636 |
| 22 | % | $ | 15,602 |
| 20 | % | $ | 15,530 |
| 20 | % | $ | 14,840 |
| 16 | % | $ | 47,088 |
| 20 | % | $ | 51,279 |
| 21 | % |
Structuring revenue (a) |
| 8,316 |
| 11 | % | 3,622 |
| 5 | % | 7,638 |
| 10 | % | 3,930 |
| 5 | % | 21,221 |
| 23 | % | 19,576 |
| 8 | % | 42,901 |
| 18 | % | |||||||
Investment management revenues |
| 24,166 |
| 31 | % | 19,258 |
| 27 | % | 23,240 |
| 30 | % | 19,460 |
| 25 | % | 36,061 |
| 39 | % | 66,664 |
| 28 | % | 94,180 |
| 39 | % | |||||||
Real estate revenues |
| 54,154 |
| 69 | % | 56,206 |
| 75 | % | 56,443 |
| 71 | % | 58,730 |
| 75 | % | 54,576 |
| 60 | % | 166,801 |
| 71 | % | 149,734 |
| 61 | % | |||||||
Total Adjusted Revenue |
| $ | 78,320 |
| 100 | % | $ | 75,464 |
| 100 | % | $ | 79,683 |
| 100 | % | $ | 78,190 |
| 100 | % | $ | 90,637 |
| 100 | % | $ | 233,465 |
| 100 | % | $ | 243,914 |
| 100 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Reconciliation of Total Adjusted Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total revenue — as reported |
| $ | 71,036 |
|
|
| $ | 67,827 |
|
|
| $ | 69,134 |
|
|
| $ | 61,975 |
|
|
| $ | 76,658 |
|
|
| $ | 207,996 |
|
|
| $ | 268,862 |
|
|
|
Less: Reimbursed costs from affiliates (b) |
| (19,879 | ) |
|
| (20,484 | ) |
|
| (18,737 | ) |
|
| (15,345 | ) |
|
| (14,707 | ) |
|
| (59,100 | ) |
|
| (49,485 | ) |
|
| |||||||
Less: Wholesaling revenue (b) |
| (4,012 | ) |
|
| (4,080 | ) |
|
| (3,787 | ) |
|
| (2,876 | ) |
|
| (2,586 | ) |
|
| (11,878 | ) |
|
| (8,788 | ) |
|
| |||||||
Less: Incentive, termination and subordinated disposition |
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (52,515 | ) |
|
| |||||||
Add: Lease revenues — discontinued operations |
| 59 |
|
|
| 190 |
|
|
| 910 |
|
|
| 1,244 |
|
|
| 579 |
|
|
| 1,159 |
|
|
| 6,025 |
|
|
| |||||||
Add: Pro rata share of revenues from equity investments |
| 5,313 |
|
|
| 5,738 |
|
|
| 6,412 |
|
|
| 6,601 |
|
|
| 6,689 |
|
|
| 17,463 |
|
|
| 21,668 |
|
|
| |||||||
Less: Pro rata share of revenues due to noncontrolling interests |
| (411 | ) |
|
| (422 | ) |
|
| (428 | ) |
|
| (436 | ) |
|
| (452 | ) |
|
| (1,261 | ) |
|
| (2,193 | ) |
|
| |||||||
Add: Pro rata share of revenues from CPA® REITs |
| 18,862 |
|
|
| 19,232 |
|
|
| 19,205 |
|
|
| 19,760 |
|
|
| 19,976 |
|
|
| 57,297 |
|
|
| 52,072 |
|
|
| |||||||
Add: Total distributions of available cash |
| 7,352 |
|
|
| 7,463 |
|
|
| 6,974 |
|
|
| 7,267 |
|
|
| 4,480 |
|
|
| 21,789 |
|
|
| 8,268 |
|
|
| |||||||
Total Adjusted Revenue |
| $ | 78,320 |
|
|
| $ | 75,464 |
|
|
| $ | 79,683 |
|
|
| $ | 78,190 |
|
|
| $ | 90,637 |
|
|
| $ | 233,465 |
|
|
| $ | 243,914 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Reconciliation of Real Estate Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Lease revenues — as reported |
| $ | 16,714 |
|
|
| $ | 17,084 |
|
|
| $ | 17,467 |
|
|
| $ | 18,139 |
|
|
| $ | 17,001 |
|
|
| $ | 51,265 |
|
|
| $ | 46,682 |
|
|
|
Lease revenues — discontinued operations |
| 59 |
|
|
| 189 |
|
|
| 911 |
|
|
| 1,244 |
|
|
| 579 |
|
|
| 1,159 |
|
|
| 6,025 |
|
|
| |||||||
Total consolidated lease revenues |
| 16,773 |
|
|
| 17,273 |
|
|
| 18,378 |
|
|
| 19,383 |
|
|
| 17,580 |
|
|
| 52,424 |
|
|
| 52,707 |
|
|
| |||||||
Add: Pro rata share of revenues from equity investments |
| 5,313 |
|
|
| 5,738 |
|
|
| 6,412 |
|
|
| 6,601 |
|
|
| 6,689 |
|
|
| 17,463 |
|
|
| 21,668 |
|
|
| |||||||
Less: Pro rata share of revenues due to noncontrolling interests |
| (411 | ) |
|
| (422 | ) |
|
| (428 | ) |
|
| (436 | ) |
|
| (452 | ) |
|
| (1,261 | ) |
|
| (2,193 | ) |
|
| |||||||
Total pro rata net lease revenues |
| 21,675 |
|
|
| 22,589 |
|
|
| 24,362 |
|
|
| 25,548 |
|
|
| 23,817 |
|
|
| 68,626 |
|
|
| 72,182 |
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Add: Pro rata share of revenues from CPA® REITs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
CPA®:14 |
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 4,484 |
|
|
| |||||||
CPA®:15(d) |
| 4,234 |
|
|
| 4,206 |
|
|
| 4,292 |
|
|
| 4,263 |
|
|
| 4,652 |
|
|
| 12,731 |
|
|
| 13,178 |
|
|
| |||||||
CPA®:16 — Global |
| 13,817 |
|
|
| 14,326 |
|
|
| 14,265 |
|
|
| 14,971 |
|
|
| 14,936 |
|
|
| 42,407 |
|
|
| 34,022 |
|
|
| |||||||
CPA®:17 — Global |
| 811 |
|
|
| 700 |
|
|
| 648 |
|
|
| 526 |
|
|
| 388 |
|
|
| 2,159 |
|
|
| 388 |
|
|
| |||||||
Total pro rata share of revenues from CPA® REITs |
| 18,862 |
|
|
| 19,232 |
|
|
| 19,205 |
|
|
| 19,760 |
|
|
| 19,976 |
|
|
| 57,297 |
|
|
| 52,072 |
|
|
| |||||||
Add: Distributions of available cash — CPA® REITs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
CPA®:16 — Global |
| 3,685 |
|
|
| 3,598 |
|
|
| 4,281 |
|
|
| 3,658 |
|
|
| 2,499 |
|
|
| 11,564 |
|
|
| 2,499 |
|
|
| |||||||
CPA®:17 — Global |
| 3,667 |
|
|
| 3,865 |
|
|
| 2,693 |
|
|
| 3,609 |
|
|
| 1,981 |
|
|
| 10,225 |
|
|
| 5,769 |
|
|
| |||||||
Total distributions of available cash — CPA® REITs |
| 7,352 |
|
|
| 7,463 |
|
|
| 6,974 |
|
|
| 7,267 |
|
|
| 4,480 |
|
|
| 21,789 |
|
|
| 8,268 |
|
|
| |||||||
Add: Other real estate income (e) |
| 6,265 |
|
|
| 6,922 |
|
|
| 5,902 |
|
|
| 6,155 |
|
|
| 6,303 |
|
|
| 19,089 |
|
|
| 17,212 |
|
|
| |||||||
Total Real Estate Revenues |
| $ | 54,154 |
|
|
| $ | 56,206 |
|
|
| $ | 56,443 |
|
|
| $ | 58,730 |
|
|
| $ | 54,576 |
|
|
| $ | 166,801 |
|
|
| $ | 149,734 |
|
|
|
W. P. Carey Inc. 9/30/2012 Supplemental 8-K — 14
(a) We earn structuring revenue on acquisitions structured on behalf of the Managed REITS and expect significant period-to-period variation in such revenue based on changes in investment volume. Investments structured on behalf of the Managed REITS totaled approximately $198 million, $98 million, $172 million, $132 million, and $498 million for the three months ended September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011 and September 30, 2011, respectively, and approximately $468 million and $1 billion for the nine months ended September 30, 2012 and September 30, 2011, respectively.
(b) Total adjusted revenue excludes reimbursements of costs received from the affiliated Managed REITs as they have no impact on net income. Also excluded is wholesaling revenue earned in connection with CPA®:17 — Global’s and CWI’s public offerings, which is substantially offset by underwriting costs incurred in connection with the offering.
(c) In connection with providing a liquidity event for CPA®:14 shareholders, in May 2011, we earned termination revenue of $31.2 million and subordinated disposition revenue of $21.3 million, which we received in shares of CPA®:14 and cash, respectively. These CPA®:14 shares were subsequently converted to shares of CPA®:16 — Global in connection with the CPA®:14/16 Merger.
(d) For the three and nine month periods ended September 30, 2012, represents pro rata lease revenue from CPA®:15 through September 28, 2012, the date of the Merger.
(e) Other real estate income generally consists of revenue from Carey Storage Management LLC (“Carey Storage”), a subsidiary that invests in domestic self-storage properties and Livho, Inc., a subsidiary that operates a hotel franchise. Other real estate income also includes lease termination payments and other non-rents related revenues from real estate ownership, and as a result, we expect Other real estate income to fluctuate period to period.
(f) Amounts presented for prior year periods do not reflect adjustments for assets reclassified as held for sale or sold in the current period and reflected as discontinued operations.
W. P. Carey Inc. 9/30/2012 Supplemental 8-K — 15
W. P. CAREY INC.
Total Adjusted Revenue — W. P. Carey Group (Unaudited)
(in thousands, except percentages)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three Months Ended |
| Nine Months Ended September 30, |
| |||||||||||||||||||||||||||||||
|
| September 30, 2012 |
| June 30, 2012 |
| March 31, 2012 |
| December 31, 2011 (c) |
| September 30, 2011 (c) |
| 2012 |
| 2011 (c) |
| |||||||||||||||||||||
|
| Revenue |
| % |
| Revenue |
| % |
| Revenue |
| % |
| Revenue |
| % |
| Revenue |
| % |
| Revenue |
| % |
| Revenue |
| % |
| |||||||
W. P. Carey Inc. Pro Rata Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Pro rata lease revenue |
| $ | 21,675 |
| 9 | % | $ | 22,589 |
| 9 | % | $ | 24,362 |
| 9 | % | $ | 25,548 |
| 10 | % | $ | 23,817 |
| 10 | % | $ | 68,626 |
| 9 | % | $ | 72,182 |
| 10 | % |
Wholesaling revenue (a) |
| 4,012 |
| 2 | % | 4,080 |
| 2 | % | 3,787 |
| 1 | % | 2,876 |
| 1 | % | 2,586 |
| 1 | % | 11,878 |
| 2 | % | 8,788 |
| 1 | % | |||||||
Other real estate income |
| 6,265 |
| 2 | % | 6,922 |
| 3 | % | 5,902 |
| 2 | % | 6,155 |
| 2 | % | 6,303 |
| 3 | % | 19,089 |
| 3 | % | 17,212 |
| 2 | % | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
CPA®:14 and the Managed REITs Pro Rata Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
CPA®:14 pro rata lease revenue |
| — |
| 0 | % | — |
| 0 | % | — |
| 0 | % | — |
| 0 | % | — |
| 0 | % | — |
| 0 | % | 47,880 |
| 7 | % | |||||||
CPA®:14 other income |
| — |
| 0 | % | — |
| 0 | % | — |
| 0 | % | — |
| 0 | % | — |
| 0 | % | — |
| 0 | % | 1,228 |
| 0 | % | |||||||
CPA®:15 pro rata lease revenue (b) |
| 53,592 |
| 20 | % | 53,238 |
| 21 | % | 54,324 |
| 21 | % | 55,046 |
| 22 | % | 61,292 |
| 25 | % | 161,153 |
| 20 | % | 176,882 |
| 24 | % | |||||||
CPA®:15 other income (b) |
| 2,120 |
| 1 | % | 1,361 |
| 1 | % | 6,771 |
| 3 | % | 2,385 |
| 1 | % | 1,819 |
| 1 | % | 10,252 |
| 1 | % | 5,387 |
| 1 | % | |||||||
CPA®:16 — Global pro rata lease revenue |
| 75,707 |
| 30 | % | 78,799 |
| 31 | % | 79,116 |
| 31 | % | 83,602 |
| 33 | % | 84,583 |
| 33 | % | 233,622 |
| 31 | % | 220,469 |
| 30 | % | |||||||
CPA®:16 — Global other income |
| 10,055 |
| 4 | % | 9,916 |
| 4 | % | 11,017 |
| 4 | % | 12,093 |
| 5 | % | 9,705 |
| 4 | % | 30,988 |
| 4 | % | 27,328 |
| 4 | % | |||||||
CPA®:17 — Global pro rata lease revenue |
| 62,406 |
| 25 | % | 61,178 |
| 24 | % | 58,844 |
| 24 | % | 56,741 |
| 23 | % | 47,941 |
| 20 | % | 182,428 |
| 24 | % | 136,171 |
| 19 | % | |||||||
CPA®:17 — Global other income |
| 11,870 |
| 5 | % | 12,651 |
| 5 | % | 12,063 |
| 5 | % | 8,779 |
| 3 | % | 6,942 |
| 3 | % | 36,584 |
| 5 | % | 14,373 |
| 2 | % | |||||||
CWI hotel revenue |
| 5,868 |
| 2 | % | 846 |
| 0 | % | — |
| 0 | % | — |
| 0 | % | — |
| 0 | % | 6,714 |
| 1 | % | — |
| 0 | % | |||||||
CWI other income |
| 928 |
| 0 | % | (398 | ) | 0 | % | 417 |
| 0 | % | 546 |
| 0 | % | 535 |
| 0 | % | 947 |
| 0 | % | 535 |
| 0 | % | |||||||
Total combined revenues |
| 254,498 |
|
|
| 251,182 |
|
|
| 256,603 |
|
|
| 253,771 |
|
|
| 245,523 |
|
|
| 762,281 |
|
|
| 728,435 |
|
|
| |||||||
Less: Carey Financial revenues |
| 4,012 |
|
|
| 4,080 |
|
|
| 3,787 |
|
|
| 2,876 |
|
|
| 2,586 |
|
|
| 11,878 |
|
|
| 8,788 |
|
|
| |||||||
Net real estate related revenues |
| $ | 250,486 |
|
|
| $ | 247,102 |
|
|
| $ | 252,816 |
|
|
| $ | 250,895 |
|
|
| $ | 242,937 |
|
|
| $ | 750,403 |
|
|
| $ | 719,647 |
|
|
|
(a) Total adjusted revenue excludes reimbursements of costs received from the affiliated REITs as they have no impact on net income. Also excluded is wholesaling revenue earned in connection with CPA®:17 — Global’s and CWI’s public offerings, which is substantially offset by underwriting costs incurred in connection with the offering.
(b) For the three and nine month periods ended September 30, 2012, represents pro rata lease revenue and other income from CPA®:15 through September 28, 2012, the date of the Merger.
(c) Amounts presented for prior year periods do not reflect adjustments for assets reclassified as held for sale or sold in the current period and reflected as discontinued operations.
Non-GAAP Financial Disclosure — Total Adjusted Revenue
Total adjusted revenue is a non-GAAP financial measure that represents revenues on a GAAP basis adjusted for our pro rata share of revenues from equity investments as well as the pro rata share of revenues due to noncontrolling interests. We believe that total adjusted revenue is useful to investors and analysts as a supplemental measure of revenues from our core operations, and we use it to evaluate the stability of our underlying revenue streams. Total adjusted revenue should not be considered as an alternative to revenues computed on a GAAP basis as a measure of our profitability. Total adjusted revenue may not be comparable to similarly titled measures of other companies.
W. P. Carey Inc. 9/30/2012 Supplemental 8-K — 16
W. P. CAREY INC.
Combined Company Lease Revenues and Property Expenses (Pro rata Basis) (Unaudited)
(in thousands)
|
| Nine Months Ended September 30, 2012 |
| ||||||||||
|
| WPC LLC |
| CPA®:15 |
| Consolidation Adjustments (b) |
| Combined |
| ||||
Reconciliation of Total Pro Rata Lease Revenues |
|
|
|
|
|
|
|
|
| ||||
Lease revenues — as reported |
| $ | 51,265 |
| $ | 169,033 |
| $ | — |
| $ | 220,298 |
|
Lease revenues — discontinued operations |
| 1,159 |
| 1,779 |
| — |
| 2,938 |
| ||||
Total consolidated lease revenues |
| 52,424 |
| 170,812 |
| — |
| 223,236 |
| ||||
Add: Pro rata share of revenues from equity investments |
| 17,463 |
| 29,175 |
| — |
| 46,638 |
| ||||
Less: Pro rata share of revenues due to noncontrolling interests |
| (1,261 | ) | (38,833 | ) | — |
| (40,094 | ) | ||||
Total pro rata net lease revenues |
| $ | 68,626 |
| $ | 161,154 |
| $ | — |
| $ | 229,780 |
|
|
|
|
|
|
|
|
|
|
| ||||
Reconciliation of Pro Rata Property Expenses |
|
|
|
|
|
|
|
|
| ||||
Property expenses — as reported |
| $ | 8,747 |
| $ | 27,172 |
| $ | (18,545 | ) | $ | 17,374 |
|
Property expenses — discontinued operations |
| 426 |
| 910 |
| — |
| 1,336 |
| ||||
Total consolidated property expenses |
| 9,173 |
| 28,082 |
| (18,545 | ) | 18,710 |
| ||||
Less: Reimbursable property expenses (a) |
| (5,479 | ) | (5,926 | ) | — |
| (11,405 | ) | ||||
Total non-reimbursable property expenses |
| 3,694 |
| 22,156 |
| (18,545 | ) | 7,305 |
| ||||
Add: Pro rata share of expenses from equity investments |
| 470 |
| 399 |
| — |
| 869 |
| ||||
Less: Pro rata share of expenses due to noncontrolling interests |
| (93 | ) | (1,034 | ) | — |
| (1,127 | ) | ||||
Total Pro Rata Non-Pass Through Property Expenses |
| $ | 4,071 |
| $ | 21,521 |
| $ | (18,545 | ) | $ | 7,047 |
|
a) Reimbursable property expenses are offset by revenues booked in other real estate income and these reimbursements are therefore not included in lease revenue.
b) Represents the elimination of asset management fees paid by CPA®:15 to WPC, which are included in CPA®:15’s property expenses.
W. P. CAREY INC.
Net Asset Value Information (Pro Rata Basis) (Unaudited)
(in thousands, except percentages, per share information and share information)
Real Estate Ownership
|
| Nine Months Ended September 30, 2012 |
|
|
| |||||||||||
Pro Rata Combined Company NOI |
| WPC |
| CPA®:15 |
| Merger Adjustments |
| Combined |
| Annualized |
| |||||
Revenues |
| $ | 68,626 |
| $ | 161,154 |
| $ | — |
| $ | 229,780 |
| $ | 306,373 |
|
Non-reimbursable expenses |
| (4,071 | ) | (21,521 | ) | 18,545 |
| (7,047 | ) | (9,396 | ) | |||||
Net operating income |
| $ | 64,555 |
| $ | 139,633 |
| $ | 18,545 |
| $ | 222,733 |
| $ | 296,977 |
|
Special GP Interest in Cash Flow (Managed REITs) |
| Nine Months Ended |
| Annualized |
| ||
CPA®:16 — Global OP |
| $ | 11,564 |
| $ | 15,419 |
|
CPA®:17 — Global OP |
| 10,225 |
| 13,633 |
| ||
Total |
| $ | 21,789 |
| $ | 29,052 |
|
Other Real Estate Income |
| Revenues |
| Expenses |
| Nine Months Ended |
| Annualized |
| ||||
Storage and hotel income |
| $ | 6,630 |
| $ | 4,780 |
| $ | 1,850 |
| $ | 2,467 |
|
Managed REITs - Shares Owned |
| Current |
| Distributions |
| Most Recent NAV/ |
| Shares Owned |
| Total Value |
| |||
CPA®:16 — Global OP (18.3% Ownership) |
| 6.69 | % | $ | 18,183 |
| $ | 9.10 |
| 36,880,177 |
| $ | 335,610 |
|
CPA®:17 — Global OP (1.3% Ownership) |
| 6.50 | % | 1,034 |
| 10.00 |
| 3,446,307 |
| 34,463 |
| |||
CWI (0.5% Ownership) |
| 6.00 | % | 9 |
| 10.00 |
| 52,942 |
| 529 |
| |||
Total |
|
|
|
|
|
|
| 40,379,426 |
| $ | 370,602 |
| ||
Investment Management
|
| Nine Months Ended September 30, 2012 |
| ||||||||||
|
| Revenues |
| Merger Adjustments |
| Adjusted Revenues |
| Annualized |
| ||||
Asset Management Revenue |
| $ | 47,008 |
| $ | (18,545 | ) | $ | 28,463 |
| $ | 37,951 |
|
Structuring Revenue |
| 19,576 |
| — |
| 19,576 |
| 26,101 |
| ||||
Wholesaling Revenue |
| 11,878 |
| — |
| 11,878 |
| 15,837 |
| ||||
Total |
| $ | 78,462 |
| $ | (18,545 | ) | $ | 59,917 |
| $ | 79,889 |
|
|
|
|
|
|
|
|
|
|
| ||||
Consolidated Balance Sheet Information |
|
|
|
|
|
|
|
|
| ||||
Assets |
|
|
|
|
|
|
|
|
| ||||
Cash |
|
|
|
|
|
|
| $ | 236,744 |
| |||
Due from Affiliates |
|
|
|
|
|
|
| 29,557 |
| ||||
Other Assets, Net |
|
|
|
|
|
|
| 130,506 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Liabilities |
|
|
|
|
|
|
|
|
| ||||
Pro Rata Debt (Including JVs) |
|
|
|
|
|
|
| $ | 1,664,877 |
| |||
Line of Credit |
|
|
|
|
|
|
| 418,160 |
| ||||
Accounts Payable |
|
|
|
|
|
|
| 275,714 |
| ||||
Income Taxes, net |
|
|
|
|
|
|
| 26,296 |
| ||||
Distributions Payable |
|
|
|
|
|
|
| 44,301 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Pro forma Shares Outstanding |
|
|
|
|
|
|
| 68,566,888 |
|
W. P. CAREY INC.
Portfolio Debt Overview (Pro Rata Basis) (Unaudited)
As of September 30, 2012
(in thousands, except percentages)
Portfolio Debt Maturity
Year of Maturity |
| Balloon Payments |
| Other Principal |
| Debt Maturity |
| |||
2012 |
| $ | 29,876 |
| $ | 222 |
| $ | 30,098 |
|
2013 |
| 96,407 |
| 1,717 |
| 98,124 |
| |||
2014 |
| 672,499 | (a) | 26,228 | (a) | 698,727 | (a) | |||
2015 |
| 160,830 |
| 7,729 |
| 168,559 |
| |||
2016 |
| 56,098 |
| 16,069 |
| 72,167 |
| |||
2017 |
| 226,943 |
| 8,733 |
| 235,676 |
| |||
2018 |
| 155,356 |
| 28,143 |
| 183,499 |
| |||
2019 |
| 17,261 |
| 19,045 |
| 36,306 |
| |||
2020 |
| 108,638 |
| 31,200 |
| 139,838 |
| |||
2021 |
| 28,132 |
| 11,365 |
| 39,497 |
| |||
2022 |
| 89,466 |
| 107,031 |
| 196,497 |
| |||
Thereafter |
| 38,636 |
| 145,413 |
| 184,049 |
| |||
Total |
| $ | 1,680,142 |
| $ | 402,895 |
| $ | 2,083,037 |
|
Debt Maturity Analysis
(a) Amount includes outstanding recourse debt under the Senior Credit Facility.
Fixed and Variable Rate Debt Analysis
|
| Total Outstanding Balance |
| Percent of Total |
| |
Non-Recourse Debt |
|
|
|
|
| |
Fixed |
| $ | 1,294,437 |
| 62 | % |
Variable - Swapped |
| 200,973 |
| 9 | % | |
Variable - Future Rate Reset (Variable) |
| 114,579 |
| 6 | % | |
Variable - Capped |
| 35,054 |
| 2 | % | |
Variable - Floating |
| 19,834 |
| 1 | % | |
|
| 1,664,877 |
| 80 | % | |
Recourse Debt |
|
|
|
|
| |
Variable - Senior Credit Facility |
| 418,160 |
| 20 | % | |
Total Debt Outstanding |
| $ | 2,083,037 |
| 100 | % |
W. P. CAREY INC.
Detailed Debt Summary (Pro Rata Basis) (Unaudited)
As of September 30, 2012
(in thousands)
Tenant/Lease Guarantor |
| Maturity Date |
| Interest |
| Rate Type |
| Percent |
| Pro Rata USD Equivalent (a) |
| |
Anthony’s Manufacturing Company |
| Nov-2012 |
| 5.11 | % | Fixed |
| 100 | % | $ | 7,836 |
|
BE Aerospace, Inc. |
| Nov-2012 |
| 6.11 | % | Fixed |
| 100 | % | 7,858 |
| |
Faurecia Exhaust Systems |
| Nov-2012 |
| 5.16 | % | Fixed |
| 100 | % | 2,260 |
| |
The United States Playing Card Company & Alstom Power |
| Dec-2012 |
| 5.18 | % | Fixed |
| 100 | % | 2,369 |
| |
The United States Playing Card Company & Alstom Power |
| Dec-2012 |
| 5.18 | % | Fixed |
| 100 | % | 6,743 |
| |
Barnes & Noble, Inc. |
| Dec-2012 |
| 4.24 | % | Variable – Floating |
| 100 | % | 3,032 |
| |
Meadow Brook Meat |
| Jan-2013 |
| 6.08 | % | Fixed |
| 100 | % | 14,731 |
| |
TruServ Corporation |
| Jan-2013 |
| 5.83 | % | Fixed |
| 50 | % | 9,244 |
| |
TruServ Corporation |
| Jan-2013 |
| 5.83 | % | Fixed |
| 50 | % | 11,632 |
| |
TruServ Corporation |
| Feb-2013 |
| 5.83 | % | Fixed |
| 50 | % | 11,736 |
| |
C1000 Logistiek Vastgoed B.V. |
| Mar-2013 |
| 2.22 | % | Variable – Floating |
| 15 | % | 13,599 |
| |
Thales SA |
| Jul-2013 |
| 3.40 | % | Variable – Swapped |
| 65 | % | 12,689 |
| |
AutoZone, Inc. |
| Aug-2013 |
| 6.85 | % | Fixed |
| 100 | % | 418 |
| |
AutoZone, Inc. |
| Aug-2013 |
| 6.85 | % | Fixed |
| 100 | % | 44 |
| |
American Pad & Paper, LLC |
| Oct-2013 |
| 6.53 | % | Fixed |
| 100 | % | 5,317 |
| |
Danka Office Imaging Company |
| Oct-2013 |
| 6.71 | % | Fixed |
| 100 | % | 18,714 |
| |
LifeTime Fitness |
| Jan-2014 |
| 6.43 | % | Fixed |
| 100 | % | 22,375 |
| |
US Airways Group, Inc. |
| Apr-2014 |
| 4.23 | % | Variable – Capped |
| 79 | % | 13,741 |
| |
U-Haul Moving Partners Inc. & Mercury Partners, LP |
| May-2014 |
| 6.45 | % | Fixed |
| 58 | % | 90,575 |
| |
Actuant |
| May-2014 |
| 6.82 | % | Fixed |
| 50 | % | 5,212 |
| |
TietoEnator Plc |
| Jul-2014 |
| 5.16 | % | Fixed |
| 60 | % | 34,482 |
| |
Northrop Grumman Systems Corporation & Overland Storage Inc. |
| Aug-2014 |
| 6.18 | % | Fixed |
| 100 | % | 17,641 |
| |
Plexus Corporation |
| Aug-2014 |
| 7.25 | % | Fixed |
| 100 | % | 4,945 |
| |
Carrefour France SAS |
| Dec-2014 |
| 5.55 | % | Variable – Future Rate Reset (Variable) |
| 100 | % | 91,596 |
| |
Pohjola Non-Life Insurance Company LTD |
| Jan-2015 |
| 4.57 | % | Fixed |
| 60 | % | 33,457 |
| |
Sports Wholesale, Inc. |
| May-2015 |
| 6.45 | % | Variable – Swapped |
| 100 | % | 4,459 |
| |
Hellweg Die Profi-Baumarkte GmbH Und Co. |
| May-2015 |
| 4.50 | % | Fixed |
| 75 | % | 65,699 |
| |
Garden Ridge, L.P. |
| Jun-2015 |
| 6.75 | % | Fixed |
| 100 | % | 5,794 |
| |
Custom Food Products, LLC |
| Aug-2015 |
| 10.00 | % | Fixed |
| 100 | % | 113 |
| |
Wagon Automotive Nagold GmbH & Waldaschaff Automotive |
| Aug-2015 |
| 6.64 | % | Fixed |
| 33 | % | 6,368 |
| |
Lowes Home Improvement Warehouse |
| Sep-2015 |
| 4.87 | % | Fixed |
| 100 | % | 8,336 |
| |
Bouygues Telecom |
| Oct-2015 |
| 3.07 | % | Fixed |
| 95 | % | 4,774 |
| |
The American Bottling Company |
| Nov-2015 |
| 5.13 | % | Fixed |
| 100 | % | 28,664 |
| |
Tata Steel UK Limited |
| Nov-2015 |
| 6.17 | % | Fixed |
| 100 | % | 10,895 |
| |
Humco Holding Group, Inc. |
| Feb-2016 |
| 4.75 | % | Fixed |
| 100 | % | 2,744 |
| |
World Color Printing (USA) Corp. |
| May-2016 |
| 5.30 | % | Fixed |
| 100 | % | 4,875 |
| |
CheckFree Corporation |
| Jun-2016 |
| 6.18 | % | Fixed |
| 100 | % | 28,453 |
| |
Various self-storage facilities |
| Jul-2016 |
| 6.27 | % | Variable – Future Rate Reset (Variable) |
| 40 | % | 5,912 |
| |
Sprint Spectrum Realty Company, L. P. |
| Aug-2016 |
| 4.85 | % | Fixed |
| 100 | % | 8,228 |
| |
Del Monte Corporation |
| Aug-2016 |
| 4.80 | % | Fixed |
| 50 | % | 5,492 |
| |
Multi-Tenant |
| Oct-2016 |
| 5.01 | % | Fixed |
| 75 | % | 9,833 |
| |
Consolidated Systems, Inc. |
| Nov-2016 |
| 5.87 | % | Fixed |
| 60 | % | 6,630 |
| |
Hellweg Die Profi-Baumärkte GmbH & Co KG |
| Jan-2017 |
| 5.49 | % | Fixed |
| 43 | % | 7,931 |
| |
W. P. CAREY INC.
Detailed Debt Summary (Pro Rata Basis - Continued) (Unaudited)
As of September 30, 2012
(in thousands)
Tenant/Lease Guarantor |
| Maturity Date |
| Interest |
| Rate Type |
| Percent |
| Pro Rata USD Equivalent (a) |
|
Hellweg Die Profi-Baumärkte GmbH & Co KG |
| Jan-2017 |
| 5.49 | % | Fixed |
| 40 | % | 132,871 |
|
Hellweg Die Profi-Baumarkte GmbH Und Co. |
| Jan-2017 |
| 6.74 | % | Fixed |
| 40 | % | (11,814 | ) |
SaarOTEC |
| Jan-2017 |
| 5.32 | % | Fixed |
| 50 | % | 4,391 |
|
Rave Motion Pictures Baton Rouge LLC |
| Feb-2017 |
| 5.60 | % | Fixed |
| 100 | % | 10,063 |
|
Qwest Communications, Inc. |
| Feb-2017 |
| 4.50 | % | Fixed |
| 100 | % | 1,239 |
|
TSI Newton, LLC |
| May-2017 |
| 5.59 | % | Fixed |
| 44 | % | 3,395 |
|
24 Hour Fitness USA, Inc. |
| Jun-2017 |
| 5.50 | % | Variable – Floating |
| 100 | % | 3,203 |
|
Amylin Pharmaceuticals, Inc. |
| Jul-2017 |
| 6.20 | % | Fixed |
| 100 | % | 15,155 |
|
Amylin Pharmaceuticals, Inc. |
| Jul-2017 |
| 6.20 | % | Fixed |
| 100 | % | 18,434 |
|
Walgreens Co. |
| Jul-2017 |
| 5.67 | % | Fixed |
| 100 | % | 22,000 |
|
Advanced Micro Devices |
| Sep-2017 |
| 5.80 | % | Fixed |
| 33 | % | 18,453 |
|
Arch Chemicals, Inc. |
| Oct-2017 |
| 4.83 | % | Fixed |
| 100 | % | 7,725 |
|
PETsMART, Inc. |
| Nov-2017 |
| 5.75 | % | Fixed |
| 100 | % | 2,630 |
|
OBI Group |
| Mar-2018 |
| 5.10 | % | Variable – Swapped |
| 75 | % | 109,056 |
|
The New York Times Company |
| Apr-2018 |
| 2.96 | % | Variable – Capped |
| 18 | % | 21,313 |
|
MediMedia USA, Inc. |
| Apr-2018 |
| 5.90 | % | Fixed |
| 100 | % | 10,974 |
|
OBI Group |
| Mar-2018 |
| 5.48 | % | Variable – Swapped |
| 100 | % | 8,110 |
|
Kerr Corporation |
| Oct-2018 |
| 7.23 | % | Fixed |
| 100 | % | 7,516 |
|
Omnicom Group, Inc. |
| Oct-2018 |
| 6.77 | % | Fixed |
| 100 | % | 26,530 |
|
Various self-storage facilities |
| Feb-2019 |
| 7.03 | % | Variable – Future Rate Reset (Variable) |
| 40 | % | 12,530 |
|
Orbital Sciences Corporation |
| Jul-2019 |
| 7.75 | % | Fixed |
| 100 | % | 12,225 |
|
Universal Technical Inst. of CA, Inc. |
| Nov-2019 |
| 6.27 | % | Fixed |
| 100 | % | 11,551 |
|
24 Hour Fitness USA, Inc. |
| Jan-2020 |
| 6.10 | % | Fixed |
| 100 | % | 3,145 |
|
Merit Medical Systems, Inc. |
| Apr-2020 |
| 6.50 | % | Fixed |
| 100 | % | 13,138 |
|
JPMORGAN CHASE BANK, NATIONAL ASSOC. |
| Jul-2020 |
| 5.47 | % | Variable – Swapped |
| 100 | % | 33,778 |
|
Prefecture de Police (Paris, France) |
| Aug-2020 |
| 4.36 | % | Fixed |
| 50 | % | 35,739 |
|
Self-Storage Facility in Pensacola, FL |
| Nov-2020 |
| 6.25 | % | Variable – Future Rate Reset (Variable) |
| 100 | % | 1,810 |
|
Federal Express Corporation |
| Dec-2020 |
| 5.48 | % | Fixed |
| 100 | % | 52,228 |
|
Universal Technical Inst. of Penn., Inc. |
| Jan-2021 |
| 6.15 | % | Fixed |
| 100 | % | 13,254 |
|
SymphonyIRI Group, Inc. |
| Feb-2021 |
| 5.96 | % | Fixed |
| 100 | % | 15,600 |
|
Datalogic Scanning, Inc. |
| Feb-2021 |
| 5.80 | % | Fixed |
| 100 | % | 4,744 |
|
PETsMART, Inc. |
| Sep-2021 |
| 6.50 | % | Fixed |
| 30 | % | 5,899 |
|
Integracolor, Ltd. |
| Mar-2022 |
| 4.37 | % | Variable – Swapped |
| 100 | % | 6,953 |
|
24 Hour Fitness USA, Inc. |
| Apr-2022 |
| 6.29 | % | Fixed |
| 100 | % | 4,213 |
|
Belgium Government |
| May-2022 |
| 6.23 | % | Fixed |
| 100 | % | 10,913 |
|
EADS North America Defense Test & Services |
| Jun-2022 |
| 4.70 | % | Fixed |
| 100 | % | 8,490 |
|
Foster Wheeler Realty Services |
| Aug-2022 |
| 3.89 | % | Variable – Swapped |
| 100 | % | 25,928 |
|
Marriott Courtyard |
| Oct-2022 |
| 5.04 | % | Fixed |
| 100 | % | 140,000 |
|
Pactiv Corporation |
| Mar-2023 |
| 6.32 | % | Fixed |
| 100 | % | 6,621 |
|
Benchmark Electronics Manufacturing, Inc. |
| Apr-2023 |
| 6.36 | % | Fixed |
| 100 | % | 5,297 |
|
Hologic, Inc. |
| May-2023 |
| 6.40 | % | Fixed |
| 100 | % | 13,184 |
|
Galyan’s Trading Company |
| Sep-2023 |
| 7.32 | % | Fixed |
| 100 | % | 11,375 |
|
Grande Communications Networks, Inc. |
| Sep-2023 |
| 6.72 | % | Fixed |
| 100 | % | 5,393 |
|
Rexam Consumer Plastics, Inc. |
| Oct-2023 |
| 6.30 | % | Fixed |
| 100 | % | 13,127 |
|
W. P. CAREY INC.
Detailed Debt Summary (Pro Rata Basis - Continued) (Unaudited)
As of September 30, 2012
(in thousands)
Tenant/Lease Guarantor |
| Maturity Date |
| Interest |
| Rate Type |
| Percent |
| Pro Rata USD Equivalent (a) |
| |
EDS Customer Relationship Mgmt. Inc. |
| Dec-2023 |
| 6.20 | % | Fixed |
| 100 | % | 10,585 |
| |
World Airways, Inc. |
| Jun-2024 |
| 6.76 | % | Fixed |
| 100 | % | 4,013 |
| |
Dick’s Sporting Goods |
| Oct-2024 |
| 7.46 | % | Fixed |
| 100 | % | 4,253 |
| |
Shaklee Corporation |
| Oct-2024 |
| 5.54 | % | Fixed |
| 100 | % | 13,041 |
| |
Berry Plastics Corporation |
| Nov-2024 |
| 5.54 | % | Fixed |
| 100 | % | 15,379 |
| |
Plumbmaster, Inc. |
| Nov-2024 |
| 5.54 | % | Fixed |
| 100 | % | 4,570 |
| |
Universal Technical Institute of Arizona |
| Dec-2024 |
| 5.82 | % | Fixed |
| 100 | % | 13,508 |
| |
24 Hour Fitness USA, Inc. |
| Jan-2025 |
| 7.63 | % | Variable – Future Rate Reset (Variable) |
| 100 | % | 2,731 |
| |
The Talaria Company, LLC |
| Jun-2025 |
| 6.26 | % | Fixed |
| 30 | % | 8,163 |
| |
Google, Inc. |
| Nov-2025 |
| 5.15 | % | Fixed |
| 100 | % | 24,000 |
| |
Gestamp Alabama, LLC |
| May-2026 |
| 6.25 | % | Fixed |
| 100 | % | 6,380 |
| |
Oriental Trading Company, inc. |
| Sep-2026 |
| 6.56 | % | Fixed |
| 100 | % | 22,429 |
| |
Total Non-Recourse Debt |
|
|
|
|
|
|
|
|
| 1,664,877 |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Weighted-Average Cost of Non-Recourse Debt |
|
|
| 5.50 | % |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Unsecured - Senior Credit Facility |
| Dec-2014 |
| 2.84 | % | Variable – Floating |
| 100 | % | 418,160 |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Total Debt |
|
|
|
|
|
|
|
|
| $ | 2,083,037 |
|
(a) Based upon exchange rates at September 30, 2012.
W. P. Carey Inc. 9/30/2012 Supplemental 8-K — 22
W. P. CAREY INC.
Selected Data for the Managed REITs (Unaudited)
As of September 30, 2012
(in thousands, except percentages)
|
|
|
|
|
| Most |
| Current |
|
|
| Asset |
|
|
|
|
| ||
|
|
|
| Shares |
| Recent NAV/ |
| Annualized |
| Distributions |
| Management |
| Structuring |
| GP |
| ||
|
| Ownership |
| Outstanding |
| Offering Price (d) |
| Distribution (a) |
| Received |
| Revenue (b) |
| Revenue (b) |
| Distributions (c) |
| ||
CPA®:16 – Global |
| 18.3 | % | 202,053,693 |
| $ | 9.10 |
| 6.69 | % | $ | 18,183 |
| 0.5 | % | 4.5 | % | 10.0 | % |
CPA®:17 – Global |
| 1.3 | % | 266,099,988 |
| 10.00 |
| 6.50 | % | 1,034 |
| 0.5 | % | 4.5 | % | 10.0 | % | ||
CWI |
| 0.5 | % | 11,155,202 |
| 10.00 |
| 6.00 | % | 9 |
| 0.5 | % | 2.5 | % | 10.0 | % | ||
|
|
|
|
|
| Total |
| Total |
|
|
|
|
| ||||
|
|
|
|
|
| Domestic |
| International |
|
|
|
|
| ||||
|
| Square Feet |
| Inception Date |
| AUM |
| AUM |
| Total AUM |
| Total Debt |
| ||||
CPA®:16 – Global |
| 47,630 |
| 2003 |
| $ | 2,621,982 |
| $ | 1,083,625 |
| $ | 3,705,607 |
| $ | 1,800,375 |
|
CPA®:17 – Global |
| 32,962 |
| 2007 |
| 1,977,528 |
| 1,466,602 |
| 3,444,130 |
| 1,357,730 |
| ||||
CWI |
| N/A |
| 2010 |
| 135,206 |
| — |
| 135,206 |
| 36,683 |
| ||||
Total |
| 80,592 |
|
|
| $ | 4,734,716 |
| $ | 2,550,227 |
| $ | 7,284,943 |
| $ | 3,194,788 |
|
(a) | The current annualized distribution rate is based on quarterly distribution rate for the second quarter of 2012. For CWI, approximately 83% of its second quarter distribution was paid in cash, with the remaining 17% paid in shares of its common stock. |
(b) | We generally earn base asset management revenue of 0.5% of average invested assets. For CPA®:17 — Global, we earn asset management revenue ranging from 0.5% of average market value for long-term net leases and certain other types of real estate investments up to 1.75% of the average equity value for certain types of securities. In 2012, we elected to receive all base asset management revenue from CPA®:15 in cash, while for CPA®:16 — Global, we elected to receive 50% of base asset management revenue in shares of CPA®:16 — Global with the remaining 50% payable in cash. For CPA®:17 — Global and CWI, we elected to receive base asset management revenue in shares of their common stock. |
(c) | We generally receive structuring revenue of up to an average of 4.5% of the total cost of all investments made by each CPA® REIT. For certain types of non-long term net lease investments acquired on behalf of CPA®:17 — Global, structuring revenue may range from 0% to 1.75% of the equity invested plus the related structuring revenue. For CWI, we earn structuring revenue of 2.5% of the total investment cost of the properties acquired. |
(d) | WPC generally calculates the estimated net asset value per share (“NAV”) for each Managed REIT by relying in part on an estimate of the fair market value of each Managed REIT’s real estate portfolio provided by a third party, adjusted to give effect to the estimated fair value of mortgages encumbering the Managed REITs’ assets as well as other adjustments. The NAVs are based on a number of variables, including individual tenant credits, lease terms, lending credit spreads, foreign currency exchange rates and tenant defaults, among others. The NAV of CPA®:16 — Global is as at December 31, 2011. NAVs have not been determined for CPA®:17 — Global and CWI as they are still in their offering periods. |
W. P. CAREY INC.
Joint Venture Information (Unaudited)
As of September 30, 2012
(in thousands, except percentages)
|
| WPC |
|
|
|
|
|
|
|
|
| WPC |
| ||||||||||
Joint Venture or JV |
| % Interest |
| Remaining |
|
|
| Total JV |
|
|
| Pro Rata Share of Total JV |
| ||||||||||
(Principal Tenant) |
| in JV |
| Interest in JV |
| Assets |
| Liabilities |
| Equity |
| Assets |
| Liabilities |
| Equity |
| ||||||
Actuant Corporation |
| 50.05 | % | CPA®:16 - 49.95% |
| $ | 15,239 |
| $ | 11,125 |
| $ | 4,114 |
| $ | 7,627 |
| $ | 45 |
| $ | 7,583 |
|
Advanced Micro Devices, Inc. |
| 66.66 | % | CPA®:16 - 33.34% |
| 85,477 |
| 67,085 |
| 13,392 |
| 56,979 |
| 44,719 |
| 8,927 |
| ||||||
Builders Firstsource, Inc. |
| 40.00 | % | CPA®:16 - 60% |
| 13,318 |
| 941 |
| 12,377 |
| 5,327 |
| 376 |
| 4,951 |
| ||||||
C1000 Logistiek Vastgoed B.V. |
| 15.00 | % | CPA®:17 - 85% |
| 188,600 |
| 95,422 |
| 93,178 |
| 28,290 |
| 14,313 |
| 13,977 |
| ||||||
Consolidated Systems, Inc. |
| 60.00 | % | CPA®:16 - 40% |
| 16,418 |
| 11,284 |
| 5,184 |
| 9,951 |
| 6,770 |
| 3,110 |
| ||||||
Del Monte Corporation |
| 50.00 | % | CPA®:16 - 50% |
| 13,019 |
| 11,383 |
| 1,636 |
| 6,510 |
| 5,692 |
| (5,685 | ) | ||||||
Eroski Sociedad Cooperativa |
| 70.00 | % | CPA®:17 - 30% |
| 29,716 |
| 106 |
| 29,494 |
| 21 |
| 74 |
| (53 | ) | ||||||
Hellweg Die Profi-Baumärkte GmbH & Co. KG (Hellweg 1) |
| 75.00 | % | CPA®:16 - 25% |
| 173,037 |
| 95,042 |
| 77,994 |
| 129,777 |
| 71,282 |
| 58,496 |
| ||||||
Hellweg Die Profi-Baumärkte GmbH & Co. KG (Hellweg 2) |
| 45.00 | % | CPA®:16 - 27%; CPA®:17 -33% |
| 418,083 |
| 371,026 |
| 47,057 |
| 188,137 |
| 166,962 |
| 21,176 |
| ||||||
PETsMART, Inc. |
| 30.00 | % | CPA®:16 - 70% |
| 26,410 |
| 19,874 |
| 6,536 |
| 7,923 |
| 5,962 |
| 1,961 |
| ||||||
Barth Europa Transporte e.K/MSR Technologies GmbH |
| 66.67 | % | CPA®:16 - 33.33% |
| 11,638 |
| 858 |
| 10,780 |
| 7,759 |
| 572 |
| 7,187 |
| ||||||
Multi-tenant property in in Conflan St Honorine, France |
| 65.00 | % | CPA®:16 - 35% |
| 25,733 |
| 23,590 |
| 2,143 |
| 16,726 |
| 15,333 |
| 1,393 |
| ||||||
Multi-tenant property in Illkirch-Graffens, France |
| 75.00 | % | Third party - 25% |
| 21,859 |
| 15,042 |
| 6,817 |
| 16,394 |
| 11,281 |
| 5,113 |
| ||||||
Multi-tenant property in Tours, France |
| 95.00 | % | Third party - 5% |
| 11,744 |
| 8,391 |
| 3,353 |
| 11,156 |
| 7,971 |
| 3,185 |
| ||||||
The New York Times Company |
| 17.75 | % | CPA®:16 - 27.25%; CPA®:17 -55% |
| 247,951 |
| 63,281 |
| 184,670 |
| 44,011 |
| 11,232 |
| 32,779 |
| ||||||
OBI A.G. |
| 75.00 | % | CPA®:16 - 25% |
| 156,216 |
| 150,413 |
| 5,803 |
| 117,162 |
| 112,810 |
| 4,352 |
| ||||||
Pohjola Non-Life Insurance Company |
| 60.00 | % | CPA®:16 - 40% |
| 85,035 |
| 74,989 |
| 10,045 |
| 51,021 |
| 44,994 |
| 6,027 |
| ||||||
Police Prefecture, French Government |
| 50.00 | % | CPA®:16 - 50% |
| 89,249 |
| 80,172 |
| 9,077 |
| 44,624 |
| 40,086 |
| 4,538 |
| ||||||
SaarOTEC |
| 50.00 | % | CPA®:16 - 50% |
| 5,800 |
| 9,304 |
| (3,504 | ) | 2,900 |
| 4,652 |
| (1,752 | ) | ||||||
Schuler A.G. |
| 66.67 | % | CPA®:16 - 33% |
| 65,364 |
| 1,852 |
| 63,512 |
| 43,577 |
| 1,235 |
| 42,342 |
| ||||||
TietoEnator Plc |
| 60.00 | % | CPA®:16 - 40% |
| 79,369 |
| 59,925 |
| 19,444 |
| 47,621 |
| 35,955 |
| 11,666 |
| ||||||
Talaria Holdings, LLC |
| 30.00 | % | CPA®:16 - 70% |
| 50,182 |
| 27,839 |
| 22,344 |
| 15,055 |
| 8,352 |
| 6,703 |
| ||||||
Town Sports International Holdings, Inc. |
| 44.00 | % | CPA®:16 - 56% |
| 7,280 |
| 7,550 |
| (271 | ) | 3,203 |
| 3,322 |
| (119 | ) | ||||||
True Value Company |
| 50.00 | % | CPA®:16 - 50% |
| 123,919 |
| 67,143 |
| 56,776 |
| 61,960 |
| 33,572 |
| 28,388 |
| ||||||
U-Haul Moving Partners, Inc. and Mercury Partners, L.P. |
| 57.69 | % | CPA®:16 - 30.77%; CPA®:11.54% |
| 281,392 |
| 180,461 |
| 100,931 |
| 162,335 |
| 104,108 |
| 58,227 |
| ||||||
US Airways |
| 74.58 | % | Third party - 25.42% |
| 28,649 |
| 19,027 |
| 9,622 |
| 21,366 |
| 14,190 |
| 7,176 |
| ||||||
Vacant - Carlsbad, CA |
| 50.00 | % | CPA®:16 - 50% |
| 21,686 |
| 667 |
| 21,019 |
| 10,843 |
| 333 |
| 10,510 |
| ||||||
Waldaschaff Automotive GmbH and Wagon Automotive Nagold GmbH |
| 33.33 | % | CPA®:17 - 67% |
| 41,718 |
| 20,453 |
| 21,265 |
| 13,905 |
| 6,817 |
| 7,088 |
| ||||||
|
|
|
|
|
| $ | 2,334,101 |
| $ | 1,494,245 |
| $ | 834,788 |
| $ | 1,132,160 |
| $ | 773,010 |
| $ | 349,246 |
|
W. P. CAREY INC.
Owned Portfolio Analysis — Diversification by Rent and Historical Occupancy (Pro Rata Basis) (Unaudited)
As of September 30, 2012
(in thousands, except percentages)
Top Ten Tenants by Annualized Contractual Minimum Base Rent
|
| Annualized Contractual |
|
|
| |
Tenant/Lease Guarantor |
| Minimum Base Rent |
| Percent |
| |
Hellweg Die Profi-Baumärkte GmbH & Co KG (a) |
| $ | 25,369 |
| 8 | % |
U-Haul Moving Partners, Inc. and Mercury Partners, L.P. |
| 18,741 |
| 6 | % | |
Marriott International, Inc. |
| 17,752 |
| 6 | % | |
Carrefour France, SAS (a) |
| 16,451 |
| 5 | % | |
OBI A.G. (a) |
| 13,028 |
| 4 | % | |
Universal Technical Institute |
| 10,065 |
| 3 | % | |
Federal Express Corporation |
| 7,513 |
| 2 | % | |
True Value Company |
| 7,101 |
| 2 | % | |
Foster Wheeler AG |
| 6,510 |
| 2 | % | |
Fiserv, Inc. |
| 5,342 |
| 2 | % | |
Total |
| $ | 127,872 |
| 40 | % |
|
|
|
|
|
| |
Weighted-Average Lease Term for Portfolio |
| 9.1 years |
|
|
|
W. P. Carey Inc. Historical Occupancy
(a) | Rent amounts are subject to fluctuations in foreign currency exchange rates. |
(b) | Percentage of the portfolio’s total pro rata square footage that was subject to lease. |
W. P. CAREY INC.
Owned Portfolio Analysis — Diversification by Property Type (Pro Rata Basis) (Unaudited)
As of September 30, 2012
(in thousands, except percentages)
Property Type |
| Square Footage |
| Percent |
|
Industrial |
| 12,760 |
| 32 | % |
Warehouse/Distribution |
| 10,117 |
| 26 | % |
Office |
| 5,358 |
| 14 | % |
Retail |
| 5,044 |
| 13 | % |
Other Properties |
| 6,066 |
| 15 | % |
Total (a) |
| 39,345 |
| 100 | % |
|
| Annualized Contractual |
|
|
| |
Property Type |
| Minimum Base Rent (b) |
| Percent |
| |
Office |
| $ | 87,430 |
| 27 | % |
Industrial |
| 70,748 |
| 22 | % | |
Warehouse/Distribution |
| 50,971 |
| 16 | % | |
Retail |
| 50,730 |
| 16 | % | |
Other Properties |
| 59,550 |
| 19 | % | |
Total (a) |
| $ | 319,429 |
| 100 | % |
Portfolio Diversification by Property Type | Portfolio Diversification by Property Type |
(a) | Excludes 20 domestic self-storage properties in our Carey Storage subsidiary, totaling approximately 0.5 million square feet (on a pro rata basis). |
(b) | Includes hospitality and self storage where the rent provided is net operating income for these operating properties and not an annualized contractual minimum base rent. |
W. P. CAREY INC.
Owned Portfolio Analysis — Diversification by Tenant Industry (Pro Rata Basis) (Unaudited)
As of September 30, 2012
(in thousands, except percentages)
|
|
|
|
|
| Annualized Contractual |
| |||
|
| Square Footage |
| Minimum Base Rent |
| |||||
Industry Type (a) |
| WPC |
| Percent |
| WPC |
| Percent |
| |
Retail Trade |
| 8,648 |
| 22 | % | $ | 70,038 |
| 22 | % |
Business and Commercial Services |
| 1,563 |
| 4 | % | 27,722 |
| 9 | % | |
Electronics |
| 2,292 |
| 6 | % | 27,079 |
| 8 | % | |
Healthcare, Education, and Childcare |
| 1,662 |
| 4 | % | 20,272 |
| 6 | % | |
Hotels and Gaming |
| 1,194 |
| 3 | % | 17,752 |
| 6 | % | |
Chemicals, Plastics, Rubber, and Glass |
| 3,110 |
| 8 | % | 14,241 |
| 4 | % | |
Telecommunications |
| 922 |
| 2 | % | 13,479 |
| 4 | % | |
Buildings and Real Estate |
| 2,232 |
| 6 | % | 12,377 |
| 4 | % | |
Media: Printing and Publishing |
| 1,511 |
| 4 | % | 11,471 |
| 4 | % | |
Leisure, Amusement, Entertainment |
| 564 |
| 1 | % | 10,756 |
| 3 | % | |
Beverages, Food, and Tobacco |
| 1,715 |
| 4 | % | 10,368 |
| 3 | % | |
Transportation - Personal |
| 1,367 |
| 3 | % | 10,064 |
| 3 | % | |
Transportation - Cargo |
| 620 |
| 2 | % | 9,944 |
| 3 | % | |
Construction and Building |
| 2,191 |
| 6 | % | 8,834 |
| 3 | % | |
Automobile |
| 2,091 |
| 5 | % | 8,684 |
| 3 | % | |
Aerospace and Defense |
| 970 |
| 2 | % | 6,604 |
| 2 | % | |
Federal, State, and Local Government |
| 254 |
| 1 | % | 6,168 |
| 2 | % | |
Machinery |
| 1,012 |
| 3 | % | 5,919 |
| 2 | % | |
Consumer and Durable Goods |
| 1,040 |
| 3 | % | 5,350 |
| 2 | % | |
Insurance |
| 511 |
| 1 | % | 5,320 |
| 2 | % | |
Other (b) |
| 3,876 |
| 10 | % | 16,987 |
| 5 | % | |
Total (c) |
| 39,345 |
| 100 | % | $ | 319,429 |
| 100 | % |
(a) | Based on the Moody’s Classification System and information provided by the tenant. |
(b) | Includes rent from tenants in the following industries: forest products and paper; grocery; banking; mining, metals, and primary metal industries; consumer non-durable goods; textiles, leather, and apparel; and multi-tenant properties. |
(c) | Excludes 20 domestic self-storage properties in our Carey Storage subsidiary, totaling approximately 0.5 million square feet (on a pro rata basis). |
Portfolio Revenues — Contractual Increases (a)
(based on annualized contractual minimum base rent)
(a) Pro rata rents and exchange rate as of September 30, 2012.
W. P. Carey Inc. 9/30/2012 Supplemental 8-K — 27
W. P. CAREY INC.
Owned Portfolio Analysis — Diversification by Geography (Pro Rata basis) (Unaudited)
As of September 30, 2012
(in thousands, except percentages)
Region |
| Square Footage |
| Percent |
|
U.S. |
|
|
|
|
|
South |
| 11,083 |
| 28 | % |
West |
| 6,942 |
| 17 | % |
Midwest |
| 5,757 |
| 15 | % |
East |
| 5,746 |
| 15 | % |
U.S. Total |
| 29,528 |
| 75 | % |
International |
|
|
|
|
|
Germany |
| 3,453 |
| 9 | % |
France |
| 3,451 |
| 9 | % |
Poland |
| 1,399 |
| 3 | % |
Other (a) |
| 1,514 |
| 4 | % |
International Total |
| 9,817 |
| 25 | % |
Total |
| 39,345 |
| 100 | % |
|
| Annualized Contractual |
|
|
| |
Region |
| Minimum Base Rent (b) |
| Percent |
| |
U.S. |
|
|
|
|
| |
South |
| $ | 75,064 |
| 23 | % |
West |
| 70,247 |
| 22 | % | |
East |
| 49,590 |
| 16 | % | |
Midwest |
| 36,313 |
| 11 | % | |
U.S. Total |
| 231,214 |
| 72 | % | |
International |
|
|
|
|
| |
Germany |
| 33,117 |
| 11 | % | |
France |
| 24,774 |
| 8 | % | |
Poland |
| 13,028 |
| 4 | % | |
Other (a) |
| 17,296 |
| 5 | % | |
International Total |
| 88,215 |
| 28 | % | |
Total |
| $ | 319,429 |
| 100 | % |
Portfolio Diversification by Geography (based on square footage) | Portfolio Diversification by Geography (based on annualized contractual minimum base rent) |
|
|
(a) | Includes assets in Belgium, Finland, the Netherlands, Spain, and the United Kingdom. |
(b) | Excludes 20 domestic self-storage properties in our Carey Storage subsidiary, totaling approximately 0.5 million square feet (on a pro rata basis). |
W. P. CAREY INC.
Owned Portfolio Analysis — Lease Maturities (Pro rata Basis) (Unaudited)
As of September 30, 2012
|
|
|
| Square Feet |
| Average Annual Rent |
| |||||
|
| Number of |
|
|
| As % of |
|
|
| As % of |
| |
Year of Lease Expiration (a) |
| Leases Expiring |
| (in 000’s) |
| Total Portfolio |
| (in 000’s) (b) |
| Total Portfolio |
| |
2012 (c) |
| 3 |
| 139 |
| 0 | % | $ | 2,360 |
| 1 | % |
2013 |
| 11 |
| 464 |
| 1 | % | 4,763 |
| 1 | % | |
2014 |
| 23 |
| 3,771 |
| 10 | % | 24,762 |
| 8 | % | |
2015 |
| 10 |
| 1,273 |
| 4 | % | 14,371 |
| 5 | % | |
2016 |
| 17 |
| 2,269 |
| 6 | % | 21,244 |
| 7 | % | |
2017 |
| 16 |
| 2,196 |
| 6 | % | 11,690 |
| 4 | % | |
2018 |
| 16 |
| 2,617 |
| 7 | % | 23,945 |
| 8 | % | |
2019 |
| 11 |
| 1,592 |
| 4 | % | 25,813 |
| 8 | % | |
2020 |
| 8 |
| 2,093 |
| 5 | % | 12,356 |
| 4 | % | |
2021 |
| 8 |
| 1,254 |
| 3 | % | 8,619 |
| 3 | % | |
2022 |
| 15 |
| 3,684 |
| 9 | % | 26,422 |
| 8 | % | |
2023 |
| 11 |
| 4,593 |
| 12 | % | 38,679 |
| 12 | % | |
2024 |
| 13 |
| 6,116 |
| 16 | % | 45,491 |
| 14 | % | |
2025 |
| 6 |
| 462 |
| 1 | % | 5,817 |
| 2 | % | |
2026 and thereafter |
| 25 |
| 6,215 |
| 16 | % | 52,697 |
| 15 | % | |
Vacant |
| — |
| 607 |
| 0 | % | — |
| — |
| |
Total (d) |
| 193 |
| 39,345 |
| 100 | % | $ | 319,429 |
| 100 | % |
(a) | Assumes tenant does not exercise renewal option. |
(b) | Includes hospitality and self storage where the rent provided is net operating income for these operating properties and not an annualized contractual minimum base rent. |
(c) | Month-to-month properties are counted in 2012 revenue stream. |
(d) | Excludes 20 domestic self-storage properties in our Carey Storage subsidiary, totaling approximately 0.5 million square feet (on a pro rata basis). |
W. P. Carey Inc. 9/30/2012 Supplemental 8-K — 29
W. P. CAREY INC.
Managed REITs-Acquisitions (Unaudited)
For the Nine Months Ended September 30, 2012
(in thousands, except square footage)
Acquisitions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio(s) |
| Tenant/Lease Guarantor |
| Property Location(s) |
| Purchase Price (a) |
| Closing Date |
| Property Type |
| Gross |
| |
CPA®:17 – Global |
| Blue Cross and Blue Shield of Minnesota, Inc. |
| Aurora, Eagan & Virginia, MN |
| $ | 169,011 |
| January-12 |
| Office |
| 1,131,469 |
|
CPA®:17 – Global |
| Sabre Communications Corporation and Cellxion, LLC |
| Alvarado, TX |
| 4,964 |
| March-12 & June-12 |
| Industrial |
| 44,250 |
| |
CPA®:17 – Global |
| Nippon Sheet Glass Co., Ltd. (b) (c) |
| Tarnobrzeg, Poland |
| 26,579 |
| April-12 |
| Warehouse/Distribution |
| BTS |
| |
CPA®:17 – Global |
| Sabre Communications Corporation and Cellxion, LLC (b) |
| Sioux City, IA |
| 17,801 |
| June-12 |
| Industrial |
| BTS |
| |
CPA®:17 – Global |
| Clayco Inc |
| St. Louis, MO |
| 6,918 |
| July-12 |
| Office |
| 84,709 |
| |
CPA®:17 – Global |
| Bearing Technologies, LTD |
| Avon, OH |
| 7,046 |
| August-12 |
| Industrial |
| 115,726 |
| |
CPA®:17 – Global |
| Shale-Inland Holdings LLC |
| Elk Grove Village, IL |
| 14,590 |
| August-12 |
| Industrial |
| 273,681 |
| |
CPA®:17 – Global |
| South University |
| Montgomery, AL & Savannah, GA |
| 24,966 |
| September-12 |
| Education |
| 131,129 |
| |
CPA®:17 – Global |
| RLJ-McLarty-Landers Automotive Holdings, LLC |
| Various locations in Alabama, Arkansas, Louisiana, Missouri, Tennessee, & Texas |
| 66,947 |
| September-12 |
| Automotive Dealership |
| 377,164 |
| |
CPA®:17 – Global |
| R.R. Donnelly & Sons Company |
| Warrenville, IL |
| 36,285 |
| September-12 |
| Office |
| 167,215 |
| |
CPA®:17 – Global |
| Syncreon Logistics Polska Sp. (b) (c) |
| Zary, Poland |
| 8,345 |
| September-12 |
| Office & Warehouse/Distribution |
| BTS |
| |
Total Acquisitions - Leased Properties |
|
|
|
|
| 383,452 |
|
|
|
|
| 2,325,343 |
|
Portfolio(s) |
| Property Type |
| Property Location(s) |
| Purchase Price (a) |
| Closing Date |
|
CWI |
| Hospitality |
| Braintree, MA |
| 12,500 |
| May-12 |
|
CWI |
| Hospitality |
| New Orleans, LA |
| 14,947 |
| June-12 |
|
CPA®:17 – Global |
| Self-Storage Facilities |
| Various locations in Alabama, Louisiana, & Mississippi |
| 16,800 |
| June-12 |
|
CWI |
| Hospitality |
| Lake Arrowhead, CA |
| 26,500 |
| July-12 |
|
CPA®:17 – Global |
| Self-Storage Facilities |
| Cherry Valley, IL |
| 3,175 |
| July-12 |
|
CPA®:17 – Global |
| Self-Storage Facility |
| Fayetteville, NC |
| 5,350 |
| September-12 |
|
Total Acquisitions - Hospitality/Self-Storage Properties |
|
|
|
|
| 79,272 |
|
|
|
Portfolio(s) |
| Security Type |
| Company |
| Purchase Price (a) |
| Closing Date |
| |
CPA®:17 – Global |
| Equity Securities |
| Lineage Logistics Holdings LLC |
| 7,070 |
| June-12 |
| |
Total Acquisitions - Equity Securities |
|
|
|
|
| 7,070 |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Total Acquisitions |
|
|
|
|
| $ | 469,794 |
|
|
|
W. P. Carey Inc. 9/30/2012 Supplemental 8-K — 30
(a) Includes capitalized transaction costs, where applicable.
(b) Acquisition includes a build-to-suit (“BTS”) transaction. Gross square footage cannot be determined at this time.
(c) Acquisition price reflects applicable foreign exchange rate.
W. P. Carey Inc. 9/30/2012 Supplemental 8-K — 31
W. P. CAREY INC.
Managed REITs - Dispositions (Unaudited)
For the Nine Months Ended September 30, 2012
(in thousands, except square footage)
Dispositions
Portfolio(s) |
| Tenant/Lease Guarantor |
| Property Location(s) |
| Gross Sale Price |
| Date |
| Property Type |
| Gross Square |
| |
CPA®:16 — Global |
| Sovereign Bank |
| Bourne, Sandwich, & Wareham, MA |
| $ | 3,173 |
| January-12 |
| Retail |
| 19,693 |
|
CPA®:15 (54%) |
| Médica — France, S.A. (a) |
| Chatou, France |
| 146 |
| January-12 |
| Land |
| 10,200 |
| |
CPA®:16 — Global |
| American Tire Distributors |
| Charlotte, NC |
| 1,500 |
| February-12 |
| Warehouse/Distribution |
| 120,200 |
| |
CPA®:17 — Global |
| Dolgencorp, LLC |
| Choudrant, Gardner, Mangham, Mount Hermon & Richwood, LA; Vass, NC; & Chesterfield, Hopewell, & Hot Springs, VA |
| 12,922 |
| February-12 & March-12 |
| Retail |
| 99,363 |
| |
CPA®:15 (67%), CPA®:16 — Global (33%) |
| Lindenmaier AG (a) |
| Laupheim, Germany |
| 3,961 |
| February-12 |
| Industrial |
| 67,358 |
| |
CPA®:15 |
| Vacant |
| Virginia Beach, VA |
| 18,200 |
| February-12 |
| Warehouse/Distribution |
| 774,473 |
| |
CPA®:16 — Global |
| McLane Foodservice, Inc. |
| Manassas, VA |
| 7,500 |
| March-12 |
| Warehouse/Distribution |
| 100,337 |
| |
CPA®:15 |
| Vacant (a) |
| Little Germany, United Kingdom |
| 3,387 |
| April-12 |
| Office |
| 41,432 |
| |
CPA®:15 (54%) |
| Médica — France, S.A. (a) |
| Chatou, Paris, Poissy, Rosny sous Bois, Rueil Malmaison, & Sarcelles, France |
| 52,787 |
| April-12 |
| Nursing Home |
| 182,594 |
| |
CPA®:16 — Global |
| Rome Die Casting, LLC |
| Rome, GA |
| 450 |
| April-12 |
| Industrial |
| 117,500 |
| |
CPA®:16 — Global |
| PolyPipe, Inc. |
| Fernley, NV |
| 2,700 |
| May-12 |
| Industrial |
| 31,648 |
| |
CPA®:16 — Global |
| Hydro Systems Company |
| Milford, OH |
| 4,127 |
| June-12 |
| Industrial |
| 437,000 |
| |
CPA®:15 |
| Shaklee Corporation |
| Pleasanton, CA |
| 11,100 |
| June-12 |
| Land |
| N/A |
| |
CPA®:15 (50%), CPA®:16 — Global (50%) |
| Vacant |
| Carlsbad, CA |
| 3,606 |
| July-12 |
| Warehouse/Distribution |
| 24,056 |
| |
Total Dispositions |
|
|
|
|
| $ | 125,559 |
|
|
|
|
| 2,025,854 |
|
(a) Disposition price reflects applicable foreign exchange rate.
W. P. Carey Inc. 9/30/2012 Supplemental 8-K — 32
W. P. CAREY INC.
Owned Portfolio Investments and Dispositions (Unaudited)
For the Nine Months Ended September 30, 2012
(in thousands, except square footage)
Acquisitions - Owned Portfolio (a) |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Portfolio(s) |
| Tenant/Lease Guarantor |
| Property Location(s) |
| Purchase Price |
| Closing Date |
| Property Type |
| Square Footage |
| |
WPC INC |
| Walgreens |
| Virginia Beach, VA; Florence, AL; Snellville, GA; Concord, NC & Rockport, TX |
| $ | 24,377 |
| September-12 |
| Retail |
| 73,840 |
|
Dispositions - Owned Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
| |
WPC INC (46%) |
| Médica — France, S.A. (b) |
| Chatou, France |
| $ | 124 |
| January-12 |
| Land |
| 8,619 |
|
WPC INC |
| Cleo, Inc. |
| Memphis, TN |
| 2,600 |
| March-12 |
| Warehouse/Distribution |
| 1,006,170 |
| |
WPC INC |
| L-3 Communications Titan Corp. |
| San Diego, CA |
| 13,685 |
| April-12 |
| Office |
| 166,403 |
| |
WPC INC (46%) |
| Médica — France, S.A. (b) |
| Chatou, Paris, Poissy, Rosny sous Bois, Rueil Malmaison, & Sarcelles, France |
| 40,854 |
| April-12 |
| Nursing Home |
| 154,295 |
| |
WPC INC |
| Vacant |
| Brewton, AL |
| 75 |
| May-12 |
| Retail |
| 30,625 |
| |
WPC INC |
| Vacant |
| Charlotte, NC |
| 9,625 |
| June-12 |
| Industrial |
| 437,000 |
| |
WPC INC |
| United States Postal Service |
| Bloomingdale, IL |
| 3,100 |
| August-12 |
| Office |
| 116,000 |
| |
WPC INC |
| Vacant |
| Jacksonville, FL |
| 3,875 |
| August-12 |
| Warehouse/Distribution |
| 240,000 |
| |
Total Owned Portfolio Dispositions |
|
|
|
|
| $ | 73,938 |
|
|
|
|
| 2,159,112 |
|
(a) Acquisitions exclude the Marcourt portfolio and properties acquired from CPA®:15 in connection with the Merger.
(b) Disposition price reflects applicable foreign exchange rate.
W. P. Carey Inc. 9/30/2012 Supplemental 8-K — 33
W. P. Carey Inc.
Tenants By Annualized Rent (Pro Rata Basis) (Unaudited)
As of September 30, 2012
|
|
|
|
|
| Number |
|
|
| Annualized |
| Annualized |
|
|
|
|
|
|
| |
|
|
|
|
|
| of |
| Square |
| Rent |
| Rent as a |
| Increase |
|
|
|
|
| |
Tenant |
| Location(s) |
| Region |
| Locations |
| Feet |
| (in 000’s) |
| % of Total |
| Factor |
| Property Type |
| Industry |
| |
Hellweg |
| Germany |
| Europe |
| 53 |
| 2,308,190 |
| $ | 25,369 |
| 7.9 | % | CPI |
| Retail |
| Retail Stores |
|
U-Haul/Mercury Partners, Inc. |
| AL; AZ; CO; FL; GA; IL; IN; KS; LA; MA; MD; MN; MO; MS; NC; NJ; NM; NV; NY; OH; OK; TN; TX; VA |
| East; Midwest; South; West |
| 78 |
| 3,354,247 |
| 18,741 |
| 5.9 | % | CPI |
| Self-Storage |
| Buildings and Real Estate, Transportation - Personal |
| |
Marriott Corporation |
| CA; FL; IL; IN; KY; MD; NJ; NM; WA |
| East; Midwest; South; West |
| 12 |
| 1,036,203 |
| 17,752 |
| 5.6 | % | OTHER |
| Other Properties |
| Hotels and Gaming |
| |
Carrefour |
| France |
| Europe |
| 8 |
| 2,940,004 |
| 16,451 |
| 5.1 | % | CPI; FIXED |
| Warehouse/Distribution |
| Retail Stores |
| |
OBI Group |
| Poland |
| Europe |
| 18 |
| 1,398,520 |
| 13,028 |
| 4.1 | % | CPI |
| Office; Retail |
| Retail Stores |
| |
UTI Holdings, Inc. |
| Avondale, AZ; Exton, PA; Rancho Cucamonga, CA; Glendale Heights, IL |
| West; East; Midwest |
| 5 |
| 809,597 |
| 10,065 |
| 3.2 | % | CPI |
| Other Properties |
| Healthcare, Education and Childcare |
| |
Federal Express Corporation |
| College Station, TX; Collierville, TN; Corpus Christi, TX |
| South |
| 3 |
| 432,672 |
| 7,513 |
| 2.4 | % | CPI; FIXED |
| Office; Warehouse/Distribution |
| Transportation - Cargo |
| |
True Value Company |
| Corsicana, TX; Fogelsville, PA; Jonesboro, GA; Kansas City, MO; Kingman, AZ; Springfield, OR; Woodland, CA |
| East; Midwest; South; West |
| 7 |
| 1,814,078 |
| 7,101 |
| 2.2 | % | FIXED |
| Industrial; Warehouse/Distribution |
| Construction and Building |
| |
Foster Wheeler |
| Clinton, NJ |
| East |
| 1 |
| 292,000 |
| 6,510 |
| 2.0 | % | CPI |
| Office |
| Business and Commercial Services |
| |
Fiserv, Inc. |
| Norcross, GA |
| South |
| 1 |
| 220,676 |
| 5,342 |
| 1.7 | % | CPI |
| Land; Office |
| Business and Commercial Services |
| |
Pohjola |
| Finland |
| Europe |
| 1 |
| 510,600 |
| 5,320 |
| 1.7 | % | CPI |
| Office |
| Insurance |
| |
Tieto |
| Finland |
| Europe |
| 2 |
| 279,890 |
| 5,054 |
| 1.6 | % | CPI |
| Office |
| Electronics |
| |
LifeTime Fitness |
| Canton, MI; Rochester Hills, MI |
| Midwest |
| 2 |
| 278,982 |
| 4,672 |
| 1.5 | % | FIXED |
| Other Properties |
| Leisure, Amusement, Entertainment |
| |
Schuler AG |
| Germany |
| Europe |
| 1 |
| 497,744 |
| 4,516 |
| 1.4 | % | CPI |
| Industrial |
| Machinery |
| |
W. P. Carey Inc. 9/30/2012 Supplemental 8-K — 34
W. P. Carey Inc.
Tenants By Annualized Rent (Pro Rata Basis) (Unaudited) - Continued
As of September 30, 2012
|
|
|
|
|
| Number |
|
|
| Annualized |
| Annualized |
|
|
|
|
|
|
|
|
|
|
|
|
| of |
| Square |
| Rent |
| Rent as a |
| Increase |
|
|
|
|
|
Tenant |
| Location(s) |
| Region |
| Locations |
| Feet |
| (in 000’s) |
| % of Total |
| Factor |
| Property Type |
| Industry |
|
New York Times |
| New York, NY |
| East |
| 1 |
| 126,420 |
| 4,489 |
| 1.4 | % | FIXED |
| Office |
| Media: Printing and Publishing |
|
Dr. Pepper Snapple Group |
| Houston, TX; Irving, TX |
| South |
| 2 |
| 721,947 |
| 4,464 |
| 1.4 | % | CPI |
| Industrial |
| Beverages, Food, and Tobacco |
|
Prefecture de Police |
| France |
| Europe |
| 1 |
| 120,668 |
| 4,359 |
| 1.4 | % | CPI |
| Office |
| Federal, State and Local Government |
|
Omnicom Group, Inc. |
| Playa Vista, CA |
| West |
| 1 |
| 120,000 |
| 4,346 |
| 1.4 | % | CPI |
| Office |
| Business and Commercial Services |
|
Oriental Trading Company, inc. |
| La Vista, NE |
| Midwest |
| 1 |
| 736,209 |
| 4,215 |
| 1.3 | % | CPI |
| Warehouse/Distribution |
| Consumer and Durable Goods |
|
HP Enterprise Services, LLC |
| Louisville, CO |
| West |
| 1 |
| 403,871 |
| 4,185 |
| 1.3 | % | CPI |
| Industrial |
| Telecommunications |
|
24 Hour Fitness USA, Inc. |
| Austin, TX; Bedford, TX; Englewood, CO; Memphis, TN |
| South; West |
| 4 |
| 181,345 |
| 3,994 |
| 1.3 | % | CPI; FIXED |
| Other Properties |
| Leisure, Amusement, Entertainment |
|
Advanced Micro Devices |
| Sunnyvale, CA |
| West |
| 1 |
| 120,655 |
| 3,981 |
| 1.2 | % | CPI |
| Industrial |
| Electronics |
|
JPMorgan Chase Bank |
| Fort Worth, TX |
| South |
| 1 |
| 384,246 |
| 3,939 |
| 1.2 | % | CPI |
| Office |
| Banking |
|
Berry Plastics Corporation |
| Alsip, IL; Solvay, NY; Tolleson, AZ |
| East; Midwest; West |
| 4 |
| 941,132 |
| 3,926 |
| 1.2 | % | CPI |
| Industrial |
| Chemicals, Plastics, Rubber, and Glass |
|
Amylin Pharmaceuticals, Inc. |
| San Diego, CA |
| West |
| 2 |
| 144,311 |
| 3,844 |
| 1.2 | % | FIXED |
| Office |
| Business and Commercial Services |
|
Hologic, Inc. |
| Bedford, MA; Danbury, CT |
| East |
| 2 |
| 269,042 |
| 3,816 |
| 1.2 | % | CPI |
| Industrial |
| Electronics |
|
Konica Minolta Business Solutions U.S.A., Inc. |
| St. Petersburg, FL |
| South |
| 2 |
| 337,727 |
| 3,815 |
| 1.2 | % | CPI |
| Office |
| Electronics |
|
Dick’s Sporting Goods, Inc. |
| Buffalo, NY; Freehold, NJ; Greenwood, IN |
| East; Midwest |
| 4 |
| 340,970 |
| 3,377 |
| 1.1 | % | CPI |
| Retail |
| Retail Stores |
|
Orbital Sciences Corporation |
| Chandler, AZ |
| West |
| 1 |
| 355,307 |
| 3,307 |
| 1.0 | % | CPI |
| Industrial |
| Aerospace and Defense |
|
US Airways Group, Inc. |
| Tempe, AZ |
| West |
| 1 |
| 167,890 |
| 3,297 |
| 1.0 | % | CPI |
| Office |
| Transportation - Personal |
|
BE Aerospace, Inc. |
| Dallas, TX; Lenexa, KS; Miami, FL; Winston-Salem, NC |
| East; Midwest; South |
| 4 |
| 615,055 |
| 3,297 |
| 1.0 | % | FIXED |
| Industrial; Office; Warehouse/Distribution |
| Aerospace and Defense |
|
W. P. Carey Inc. 9/30/2012 Supplemental 8-K — 35
W. P. Carey Inc.
Tenants By Annualized Rent (Pro Rata Basis) (Unaudited) - Continued
As of September 30, 2012
|
|
|
|
|
| Number |
|
|
| Annualized |
| Annualized |
|
|
|
|
|
|
|
|
|
|
|
|
| of |
| Square |
| Rent |
| Rent as a |
| Increase |
|
|
|
|
|
Tenant |
| Location(s) |
| Region |
| Locations |
| Feet |
| (in 000’s) |
| % of Total |
| Factor |
| Property Type |
| Industry |
|
Rexam Consumer Plastics, Inc. |
| Buffalo Grove, IL; Excelsior Springs, MO; North Versailles, PA; St. Petersburg, FL; West Lafayatte, IN |
| East; Midwest; South |
| 5 |
| 616,031 |
| 3,243 |
| 1.0 | % | CPI |
| Industrial |
| Chemicals, Plastics, Rubber, and Glass |
|
MBM-Beef |
| Lewisville, TX; Orlando, FL; Rocky Mount, NC |
| East; South |
| 4 |
| 555,820 |
| 3,016 |
| 0.9 | % | FIXED |
| Warehouse/Distribution |
| Beverages, Food, and Tobacco |
|
Shaklee Corporation |
| Pleasanton, CA |
| West |
| 1 |
| 112,000 |
| 2,954 |
| 0.9 | % | FIXED |
| Office |
| Healthcare, Education and Childcare |
|
Tower Automotive |
| Auburn, IN; Bluffton, OH; Milan, TN |
| Midwest; South |
| 3 |
| 844,166 |
| 2,919 |
| 0.9 | % | CPI |
| Industrial |
| Automobile |
|
Bouygues Telecom |
| France |
| Europe |
| 2 |
| 105,803 |
| 2,748 |
| 0.9 | % | CPI |
| Office |
| Telecommunications |
|
SymphonyIRI Group, Inc. |
| Chicago, IL |
| Midwest |
| 1 |
| 159,600 |
| 2,446 |
| 0.8 | % | CPI |
| Office |
| Business and Commercial Services |
|
MediMedia USA, Inc. |
| Lower Makefield, PA |
| East |
| 1 |
| 107,000 |
| 2,331 |
| 0.7 | % | CPI |
| Office |
| Media: Printing and Publishing |
|
C1000 Logistiek Vastgoed B.V. |
| Netherlands |
| Europe |
| 6 |
| 307,029 |
| 2,223 |
| 0.7 | % | CPI |
| Warehouse/Distribution |
| Grocery |
|
AutoZone, Inc. |
| AL; FL; GA; IL; LA; MO; NC; NM; SC; TN; TX |
| East; Midwest; South; West |
| 54 |
| 302,230 |
| 2,217 |
| 0.7 | % | FIXED; NONE |
| Retail |
| Retail Stores |
|
Google Inc. |
| Venice, CA |
| West |
| 1 |
| 67,681 |
| 2,055 |
| 0.6 | % | FIXED |
| Office |
| Telecommunications |
|
Unisource Worldwide, Inc. |
| Anchorage, AK; Commerce, CA |
| West |
| 2 |
| 456,273 |
| 1,926 |
| 0.6 | % | FIXED |
| Warehouse/Distribution |
| Forest Products and Paper |
|
Overland Storage Inc |
| San Diego, CA |
| West |
| 1 |
| 91,300 |
| 1,924 |
| 0.6 | % | FIXED |
| Office |
| Electronics |
|
Learning Care Group, Inc. |
| AZ; CA; IL; MI; TX |
| Midwest; South; West |
| 13 |
| 92,234 |
| 1,881 |
| 0.6 | % | CPI |
| Other Properties |
| Healthcare, Education and Childcare |
|
Merit Medical Systems, Inc. |
| South Jordan, UT |
| West |
| 1 |
| 172,925 |
| 1,877 |
| 0.6 | % | CPI |
| Industrial |
| Healthcare, Education and Childcare |
|
Grande Communications Networks, Inc. |
| Corpus Christi, TX; Odessa, TX; San Marcos, TX; Waco, TX |
| South |
| 5 |
| 134,009 |
| 1,867 |
| 0.6 | % | CPI |
| Office |
| Telecommunications |
|
W. P. Carey Inc. 9/30/2012 Supplemental 8-K — 36
W. P. Carey Inc.
Tenants By Annualized Rent (Pro Rata Basis) (Unaudited) - Continued
As of September 30, 2012
|
|
|
|
|
| Number |
|
|
| Annualized |
| Annualized |
|
|
|
|
|
|
| |
|
|
|
|
|
| of |
| Square |
| Rent |
| Rent as a |
| Increase |
|
|
|
|
| |
Tenant |
| Location(s) |
| Region |
| Locations |
| Feet |
| (in 000’s) |
| % of Total |
| Factor |
| Property Type |
| Industry |
| |
Gestamp |
| McCalla, AL |
| South |
| 1 |
| 390,000 |
| 1,841 |
| 0.6 | % | CPI |
| Industrial |
| Automobile |
| |
Reynolds Group Holdings LTD |
| Mooresville, NC |
| East |
| 1 |
| 384,600 |
| 1,800 |
| 0.6 | % | CPI |
| Industrial |
| Chemicals, Plastics, Rubber, and Glass |
| |
World Color Printing (USA) Corp. |
| Doraville, GA |
| South |
| 1 |
| 432,559 |
| 1,771 |
| 0.6 | % | CPI |
| Industrial |
| Media: Printing and Publishing |
| |
Del Monte Corporation |
| Mendota, IL; Plover, WI; Toppenish, WA; Yakima, WA |
| Midwest; West |
| 4 |
| 367,883 |
| 1,763 |
| 0.6 | % | CPI |
| Warehouse/Distribution |
| Beverages, Food, and Tobacco |
| |
Walgreens Co. |
| Concord, NC; Florence, AL; Rockport, TX; Snellville, GA; Virginia Beach, VA |
| East; South |
| 5 |
| 73,840 |
| 1,741 |
| 0.5 | % | NONE |
| Retail |
| Retail Stores |
| |
Kerr Corporation |
| Bowling Green, KY; Jackson, TN |
| East; South |
| 2 |
| 367,965 |
| 1,736 |
| 0.5 | % | FIXED |
| Industrial |
| Chemicals, Plastics, Rubber, and Glass |
| |
Eroski Sociedad Cooperativa |
| Spain |
| Europe |
| 1 |
| 138,383 |
| 1,724 |
| 0.5 | % | CPI |
| Warehouse/Distribution |
| Grocery |
| |
EADS North America, Inc. |
| Irvine, CA |
| West |
| 1 |
| 98,631 |
| 1,708 |
| 0.5 | % | FIXED |
| Office |
| Electronics |
| |
Plexus Corp. |
| Neenah, WI |
| Midwest |
| 1 |
| 179,250 |
| 1,699 |
| 0.5 | % | CPI |
| Industrial |
| Electronics |
| |
IntegraColor, Ltd. |
| Mesquite, TX |
| South |
| 1 |
| 358,987 |
| 1,625 |
| 0.5 | % | CPI |
| Warehouse/Distribution |
| Media: Printing and Publishing |
| |
Lowes Home Improvement Warehouse |
| Bellevue, WA |
| West |
| 1 |
| 143,352 |
| 1,615 |
| 0.5 | % | CPI |
| Retail |
| Retail Stores |
| |
Belgium Government |
| Belgium |
| Europe |
| 1 |
| 122,335 |
| 1,582 |
| 0.5 | % | CPI |
| Office |
| Federal, State and Local Government |
| |
Rave Motion Pictures |
| Baton Rouge, LA |
| South |
| 1 |
| 73,292 |
| 1,579 |
| 0.5 | % | CPI |
| Other Properties |
| Leisure, Amusement, Entertainment |
| |
Sprint Spectrum Realty Company, L.P. |
| Rio Rancho, NM |
| West |
| 1 |
| 94,730 |
| 1,573 |
| 0.5 | % | FIXED |
| Office |
| Telecommunications |
| |
Vacant |
|
|
|
|
| 3 |
| 607,029 |
| — |
| 0.0 | % |
|
|
|
|
|
| |
Others |
|
|
|
|
| 82 |
| 9,127,441 |
| 45,960 |
| 14.4 | % |
|
|
|
|
|
| |
|
|
|
|
|
| 432 |
| 39,344,576 |
| $ | 319,429 |
| 100.0 | % |
|
|
|
|
|
|
W. P. Carey Inc. 9/30/2012 Supplemental 8-K — 37