NEW YORK, NY – June 28, 2000 – At the annual meeting of Carey Diversified LLC (NYSE:CDC), a market leader in the ownership and net leasing of corporate properties, shareholders approved the merger of Carey Diversified and W.P. Carey & Co., Inc. The merged entity will be a fully integrated investment company and the nation's dominant net lease firm.
The combined business will be renamed W. P. Carey & Co. LLC and will be listed on the New York Stock Exchange (NYSE:WPC) and the Pacific Exchange (PCX:WPC).
W. P. Carey is a real estate investment firm that owns and manages a group of companies, including the Corporate Property Associates series of private REITs, and Carey Institutional Properties. Assets under ownership and management for the newly created company will increase from approximately $800 million to approximately $2.5 billion.
Wm. Polk Carey will be the Chairman and Chief Executive Officer of the combined company. Francis J. Carey, formerly Chairman of Carey Diversified, will become Vice Chairman and Chairman of the Executive Committee, Gordon F. DuGan and John J. Park will continue to serve as President and Chief Financial Officer, respectively.
W. P. Carey personnel will become employees of the company. All of the operations of W. P. Carey & Co. LLC will be contributed in exchange for 8.0 million shares of WPC.
Francis J. Carey, Chairman of Carey Diversified LLC, said, "As the former Chairman of Carey Diversified, I look forward to continuing to act in the best interest of its shareholders in my new roles. This is a dynamic combination and I am confident it will produce sustainable shareholder value."
Wm. Polk Carey, Chairman and Chief Executive Officer of W. P. Carey & Co. LLC stated, "This merger will provide our shareholders with the best of both worlds - stable income from Carey Diversified's net lease operations and growth from W. P. Carey's asset management business." He concluded, "We will also have greater access to capital to make acquisitions during times when many REITs are unable to access the capital markets to finance new properties. This ongoing ability to make attractive acquisitions will help fuel consistent FFO growth."
W. P. Carey & Co. LLC manages the Corporate Property Associates series of REITs, which include CPA®:10, CPA®:12, CPA®:14, and Carey Institutional Properties (CIP®). Collectively, the Carey Group owns and manages more than 33 million square feet of property with an aggregate value of approximately $2.5 billion. Additional information about W. P. Carey & Co. LLC is available on the company's website: www.wpcarey.com.
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 office and industrial 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.