EXHIBIT 99.1
FOR IMMEDIATE RELEASE
PRESS CONTACT:
Curt Ritter
W. P. Carey & Co. LLC
212-492-8989
critter@wpcarey.com
W. P. CAREY & CO. REPORTS 25% INCREASE IN FFO
FOR FIRST QUARTER 2003
Management Confident of Another Strong Year as Sale-leaseback
Financing Transactions Remain at Record Levels
NEW YORK, NY, April 29, 2003 - Investment firm W. P. Carey & Co. LLC
(NYSE: WPC) today reported first quarter 2003 financial results for the
three-month period ended March 31, 2003.
OPERATING HIGHLIGHTS
- Diluted earnings per share (EPS) for the three-month period
increased by 21% to $0.46 up from $0.38 for the comparable
period last year. This was due in large part to an increase in
investment management revenues.
- Funds From Operations (FFO), a widely accepted supplemental
measure of performance, for the three-month period increased
25% on a per share basis to $0.76 per diluted share, or $28.1
million, up from $0.61 per diluted share, or $22.1 million,
for the comparable period last year. A complete reconciliation
containing adjustments from GAAP net income to FFO is included
in this release.
- Net income for the three-month period increased by 26% to
$17.3 million up from $13.7 million for the comparable period
in 2002.
- Total revenue for the three-month period increased 43% to
$47.1 million up from $33.0 million for the same period a year
ago. This was due in large part to an increase in investment
management revenues, as well as the receipt of $2.2 million
following the termination of a lease with The Gap, Inc. for a
property located in Erlanger, KY.
- W. P. Carey completed more than $272 million in net lease
transactions during the first quarter as compared to $117
million in 2002. Over the past 12-month period the Company
completed $1.16 billion in acquisitions. While quarterly
numbers are unpredictable, we continue to believe this
increase was due to the continuing desire of corporations to
raise capital outside of the traditional capital markets.
- In March the Board of Directors raised the cash dividend to
$.432 per common share. This reflects the eighth consecutive
quarterly increase. The dividend was paid on April 15, 2003 to
shareholders of record on March 31, 2003. Dividends have
increased every year since 1998 when the company went public.
- The Board announced the Company's 2003 Annual Shareholder
Meeting will take place on Tuesday, June 10th at 10:30 AM at
the Waldorf=Astoria Hotel in New York City. All shareholders
are invited to attend.
Chairman Wm. Polk Carey said, "Earlier this month we celebrated thirty
years of meeting the needs of our investors. Our approach to `under-promise and
over-perform,' as well as our decision to run our company as owners has been a
success and is reflected in our thirty-year track record and this quarter's
financial results. We remain committed to meeting the expectations of our
investors and to providing the sale-leaseback financing sought by corporations
looking to grow and expand their business. While no one can predict what the
future holds, our proven track record and the strength of our management team
augurs well for the future."
CONFERENCE CALL & WEBCAST
W. P. Carey will host a conference call and audio webcast to discuss
its first quarter 2003 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 1-973-317-5319). 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 1-973-709-2089) with the
access code 289931 through May 30, 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 550 commercial and industrial properties
throughout the United States and Europe comprised of more than 75 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 share and per share amounts)
THREE MONTHS ENDED MARCH 31,
2003 2002
------------ ------------
Net income $ 17,273 $ 13,729
Gain on sale of real estate (164) (1,149)
Funds from operations of equity investees in excess of
equity income (loss) 902 1,564
Depreciation, amortization, deferred taxes and other noncash
charges 10,049 7,879
Funds from operations applicable to minority investees in
excess of minority income (loss) (74) (15)
Straight-line rents 136 (139)
SAB 101 adjustment 200
Funds from operations $ 28,122 $ 22,069
FUNDS FROM OPERATIONS PER SHARE -
BASIC $ 0.77 $ 0.63
DILUTED $ 0.76 $ 0.61
Weighted average shares outstanding:
Basic 36,389,289 35,289,369
Diluted 37,211,485 35,939,985
Funds from operations is calculated as net income, excluding gains (or losses)
from debt restructuring and sales of property, plus certain noncash items
(primarily real estate depreciation, amortization, impairments and deferred
taxes) and after adjustments for unconsolidated partnerships and joint ventures.
Funds from operations is a supplemental measure of performance and 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.
W. P. CAREY & CO. LLC
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS EXCEPT SHARE AND PER SHARE AMOUNTS)
THREE MONTHS ENDED MARCH 31,
2003 2002
------------ ------------
Revenues:
Management income from affiliates $ 25,793 $ 13,485
Rental income 11,934 11,938
Interest income from direct financing leases 5,272 5,988
Interest and other income 3,463 851
Revenue of other business operations 699 688
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47,161 32,950
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Expenses:
Interest 3,923 4,284
Depreciation 2,821 2,575
Amortization 2,155 2,310
General and administrative 12,061 7,343
Property expenses 2,668 1,801
Impairment charge on real estate investments and other investments 272 --
Operating expenses of other business operations 563 512
------------ ------------
24,463 18,825
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Income from continuing operations before minority interest, equity
investments, gain on sale and income taxes 22,698 14,125
Minority interest in (income) loss (33) 15
Income from equity investments 918 187
Gain on sale of other investments -- 94
------------ ------------
Income from continuing operations before income taxes
and gain on sale of real estate 23,583 14,421
Provision for income taxes (7,024) (2,890)
------------ ------------
Income from continuing operations before gain on sale
of real estate 16,559 11,531
Discontinued operations:
Income from discontinued operations 550 1,049
Gain on sale of real estate 164 --
------------ ------------
Income from discontinued operations 714 1,049
------------ ------------
Gain on sale of real estate -- 1,149
------------ ------------
Net income $ 17,273 $ 13,729
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Basic earnings per share:
Earnings from continuing operations $ 0.46 $ 0.36
Earnings from discontinued operations 0.02 0.03
------------ ------------
Basic earnings per share $ 0.48 $ 0.39
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Diluted earnings per share:
Earnings from continuing operations $ 0.44 $ 0.35
Earnings from discontinued operations 0.02 0.03
------------ ------------
Diluted earnings per share $ 0.46 $ 0.38
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Weighted average shares outstanding:
Basic 36,389,289 35,289,369
============ ============
Diluted 37,211,485 35,939,985
============ ============