EXHIBIT 99.1
FOR IMMEDIATE RELEASE
PRESS CONTACT:
Curt Ritter Whit Clay
W. P. Carey & Co. LLC Sloane & Co.
212-492-8989 212-446-1864
critter@wpcarey.com wclay@sloanepr.com
W. P. CAREY & CO. LLC ANNOUNCES FOURTH QUARTER AND FULL YEAR 2002 FINANCIAL
RESULTS
REPORTS RECORD YEAR -- FFO PER DILUTED SHARE UP 17% IN 2002
NEW YORK, NY, February 26, 2003 - Investment firm W. P. Carey & Co. LLC
(NYSE: WPC) today reported fourth quarter and full year 2002 financial results
for the three and twelve-month periods ended December 31, 2002.
A. OPERATING HIGHLIGHTS
- Diluted earnings per share (EPS) for the year ended December 31, 2002
increased by 25% to $1.28 up from $1.02 for the comparable period last
year, primarily as a result of a $1 billion increase in assets under
management. Management revenues slightly exceeded those from real estate
investments for the first time in the Company's history. Diluted EPS for
the quarter declined to a loss of $0.10 down from break-even for the
comparable period in 2001. This decline was due to an increase in non-cash
impairment charges on real estate and related investments. Prospects for
the first quarter of 2003 appear favorable.
- Funds From Operations (FFO) for the twelve-month period increased 17% to
$2.81 per diluted share, or $102.0 million, up from $2.41 per diluted
share, or $84.2 million, for the comparable period last year. FFO for the
three-month period increased 47% to $0.87 per diluted share, or $32.4
million, up from $0.59 per diluted share, or $21.2 million, for the
comparable period in 2001. FFO is a widely accepted supplemental measure
of performance. A complete reconciliation containing adjustments from GAAP
net income to FFO is included in this release.
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- Net income for the twelve-month period increased by 30% to $46.6 million
up from $35.8 million for the comparable period in 2001. For the
three-month period the Company reported a net loss of $3.7 million as
compared with net income of $133,000 for the same period a year ago.
Excluding the non-cash impairment charges in both years, the Company would
have reflected a 55% increase in net income.
- Total revenue for the twelve-month period ended December 31, 2002
increased 25% to $161.6 million up from $129.3 million for the same period
a year ago. Total revenue for the three-month period increased by 48% to
$52.9 million up from $35.9 million for the comparable period in 2001.
- W. P. Carey completed more than $1.0 billion in net lease transactions
during 2002, including $508 million in the fourth quarter, up from $395
million during all of 2001 as companies continued to seek alternative
sources of capital. The substantial growth in transaction volume and
related fee income for 2002 is in part affected by current market
conditions and may not be indicative of a permanent increasing trend.
- In December the Board of Directors raised the cash dividend to $.431 per
common share. This reflects the seventh consecutive quarterly increase.
The dividend was paid on January 15, 2003 to shareholders of record on
December 31, 2002. Dividends have increased every year since the company
went public.
- In January, Chairman Wm. Polk Carey announced a $50 million personal gift
on behalf of the W. P. Carey Foundation to endow the W. P. Carey School of
Business at Arizona State University. This is the largest gift in ASU's
history and the second largest gift ever given to a U.S. business school.
Also in January, the Foundation announced a $10 million personal gift to
the Gilman School in Baltimore, MD.
Chairman Wm. Polk Carey said, "As we approach our thirtieth anniversary
this March, I look back and realize that our decision to run W. P. Carey as
owners has been the foundation of our success. This philosophy has enabled us to
provide our investors with consistent returns despite the uncertainties of the
broader financial markets. While the management side of our
-more-
business continues to play an increasingly important role in our success, we
remain diligent in monitoring the performance of our net-leased assets. As we
look to the next 30 years and beyond, we remain optimistic that our best days
are yet to come."
B. CONFERENCE CALL & WEBCAST
W. P. Carey will host a conference call and audio webcast to discuss its
fourth quarter and full year 2002 financial results today at 11:00 AM ET.
Stockholders and interested parties may listen to a live broadcast of the call
by dialing 1-800-915-4836 (International - 973-317-5319). The conference call
can also be accessed via the Internet on W. P. Carey's homepage at
www.wpcarey.com. Please visit the website at least fifteen minutes prior to the
call to register, download and install any necessary audio software. For those
who are not able to listen to the live broadcast, the webcast replay will be
available immediately following the call on the Company's website.
Alternatively, individuals can listen to the call after 1:00 PM ET this
afternoon by calling 1-800-428-6051 (International - 973-709-2089) with the
access code 284561 through March 5, 2003.
W. P. Carey's press releases are available on the Company's website at
www.wpcarey.com or by contacting the Corporate Communications Department at
1-800-WP CAREY or by e-mail at media@wpcarey.com.
Founded in 1973, W. P. Carey & Co. specializes in corporate real estate
financing through the corporate net lease or sale-leaseback structure. The firm
and its affiliates continue to be leading lessors of net-leased corporate real
estate. The largest publicly traded limited liability company in the world, W.
P. Carey owns and/or manages more than 500 commercial and industrial properties
throughout the United States and Europe comprised of more than 60 million square
feet.
(TABLES FOLLOW)
THIS PRESS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF THE
FEDERAL SECURITIES LAWS. A NUMBER OF FACTORS COULD CAUSE THE COMPANY'S ACTUAL
RESULTS, PERFORMANCE OR ACHIEVEMENT TO DIFFER MATERIALLY FROM THOSE ANTICIPATED.
AMONG THOSE RISKS, TRENDS AND UNCERTAINTIES ARE THE GENERAL ECONOMIC CLIMATE;
THE SUPPLY OF AND DEMAND FOR COMMERCIAL PROPERTIES; INTEREST RATE LEVELS; THE
AVAILABILITY OF FINANCING; AND OTHER RISKS ASSOCIATED WITH THE ACQUISITION AND
OWNERSHIP OF PROPERTIES, INCLUDING RISKS THAT THE TENANTS WILL NOT PAY RENT, OR
THAT COSTS MAY BE GREATER THAN ANTICIPATED. FOR FURTHER INFORMATION ON FACTORS
THAT COULD IMPACT THE COMPANY, REFERENCE IS MADE TO THE COMPANY'S FILINGS WITH
THE SECURITIES AND EXCHANGE COMMISSION
W.P. CAREY & CO. LLC
FUNDS FROM OPERATIONS
(IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
-------------------------------- --------------------------------
2002 2001 2002 2001
------------ ------------ ------------ ------------
Net income (loss) $ (3,719) $ 133 $ 46,588 $ 35,761
Gain on sale of real estate (592) (677) (15,323) (1,904)
Non-cash settlement income (2,097)
Funds from operations of equity 3,375 1,411 7,508 3,677
investees in excess of equity
income (loss)
Depreciation, amortization, deferred 11,050 8,399 37,740 32,817
taxes and other noncash charges
Minority interest in income (loss) (73) 30 (120) (68)
Straight-line rents (163) (228) (639) (897)
Writeoff of straight-line rents 142 142 1,321
Impairment charge on real estate 22,386 11,880 29,410 12,643
investments
SAB 101 adjustment 222 (1,197) 810
Funds from operations $ 32,406 $ 21,170 $ 102,012 $ 84,160
============ ============ ============ ============
FUNDS FROM OPERATIONS PER SHARE -
BASIC $ 0.90 $ 0.61 $ 2.87 $ 2.44
============ ============ ============ ============
DILUTED $ 0.87 $ 0.59 $ 2.81 $ 2.41
============ ============ ============ ============
Weighted average shares
outstanding:
Basic 35,938,531 34,639,497 35,530,334 34,465,217
============ ============ ============ ============
Diluted 37,079,149 35,636,759 36,265,230 34,952,560
============ ============ ============ ============
Funds from operations is calculated as net income (loss), excluding gains (or
losses) from debt restructuring and sales of property, plus certain noncash
items (primarily real estate depreciation, impairments and deferred taxes) and
after adjustments for unconsolidated partnerships and joint ventures. Funds from
operations does not represent net income or cash flows generated from operating
activities in accordance with GAAP. It should not be considered an alternative
to net income as an indication of the Company's operating performance or to cash
flows as a measure of liquidity or an indicator of the Company's ability to fund
its cash needs.