NEW YORK, NY – November 14, 2000 – W. P. Carey & Co. LLC (NYSE: WPC), a leader in the ownership, net leasing and management of corporate properties, today reported Funds From Operations (FFO) for the three months ended September 30, 2000 of $19.5 million or $0.57 per share, compared to $13.4 million or $0.52 per share in the third quarter of 1999, an increase of 9.6% on a per share basis.
FFO for the nine months ended September 30, 2000 increased to $46.7 million or $1.65 per diluted share, compared to $39.3 million or $1.54 per share for the first nine months last year, an increase of 7.1% on a per share basis. FFO is the most commonly accepted and reported measure of operating performance for a real estate investment company.
THIRD QUARTER HIGHLIGHTS
- FFO per diluted share increased 9.6% over the same period a year ago.The Board of Directors of W. P. Carey declared a quarterly cash dividend of $0.4225 per common share (on an annualized basis, $1.69 per share). The dividend was paid October 15, 2000 to shareholders of record on September 29, 2000.
- The percentage of per share FFO for the three months ended September 30, 2000 required to pay the per share dividend amount for the quarter improved to 72.8% from 80.3% from the same three month period a year ago, while both per share FFO and the dividend amount increased.
- W. P. Carey completed approximately $95 million in sale-leaseback and build-to-suit transactions during the third quarter for facilities leased to Celestica, Inc., U.S. Home Corporation, Buffets, Inc., AdvancePCS and Transcore Holdings, Inc. on behalf of Corporate Property Associates 14 (CPA®:14). In addition, W. P. Carey completed a $3.3 million sale-leaseback of a facility leased to Universal Technical Institute, Inc. on behalf of Carey Institutional Properties (CIP®). CPA®:14 and CIP® are real estate investment trusts (REITs) managed by W. P. Carey.
- On July 18, 2000, W. P. Carey & Co. LLC sold eight properties, including three AutoZone, Inc. stores, a Southland Corporation property and four Payless ShoeSource, Inc. retail centers, as part of management's strategy to actively manage its portfolio in order to maximize shareholder value.
QUARTERLY RESULTS
Primarily due to the advisory operations acquired in the merger with W. P. Carey & Co., Inc. and the incorporation of fees earned for services rendered to the Corporate Property Associates (CPA®) REITs, total revenues in the third quarter of 2000 increased 43% to $33.9 million from $23.7 million for the same period a year ago. For the nine-month period ended September 30, 2000, revenues increased 26% to $83.8 million from $66.7 million for the same period the previous year. Revenues for the current quarter also increased as a result of increased rent from the Company's portfolio of net-leased properties.
Excluding non-cash charges for amortization of intangible assets, income for the quarter would have reflected an increase of $3.4 million. Income excluding the charges for amortization and the write-off of the management contract for the nine-month period ended September 30, 2000 would have reflected an increase of $3.7 million from the same period a year ago, with such increases primarily due to the acquisition of the advisory business and portfolio rent increases.
ON TARGET WITH GOALS
Commenting on the Company's performance, Wm. Polk Carey, Chairman of W. P. Carey, said "We are pleased with the results of the third quarter and look forward to the continuation of benefits from the merger of W. P. Carey and Carey Diversified. Increases in FFO resulting from the addition of management fees paid for services provided to the CPA® REITs, coupled with the relatively steady revenue stream produced by a highly diversified portfolio of net-leased properties, should create for our shareholders a 'best of both worlds' scenario - good dividends and prudent growth."
Founded in 1973, W. P. Carey & Co. specializes in corporate real estate financing using the corporate net-lease, or sale-leaseback structure. The firm, including affiliates, is the leading lessor of net-leased corporate real estate in the nation. W. P. Carey, the world's largest publicly traded Limited Liability Company, owns and manages over 42 million square feet of property in the U.S. and Europe. Additional information about W. P. Carey 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.