NEW YORK, NY -- (MARKET WIRE) -- 11/06/09 --
In the news release, "W. P. Carey Announces
Third Quarter Financial Results," issued Thursday, November 05, 2009, by W.
P. Carey & Co. LLC (NYSE: WPC), we are advised by the company that the
fourth bullet point under the "QUARTERLY AND NINE-MONTH RESULTS" header
should read "Net income for the third quarter of 2009 was $13.4 million,
compared to $19.2 million for the same period in 2008. For the nine months
ended September 30, 2009, net income was $46.0 million, compared to $56.1
million for the comparable period in 2008." rather than "Net income for the
third quarter of 2009 was $12.9 million, compared to $19.2 million for the
same period in 2008. For the nine months ended September 30, 2009, net
income was $45.6 million, compared to $56.1 million for the comparable
period in 2008." as originally issued. The financial tables at the end of
the news release have been revised to account for this change as well.
Complete corrected text follows.
CORRECTION (NOVEMBER 6, 2009)
While preparing our Quarterly Report on Form 10-Q for the quarter ended
September 30, 2009, we determined that there was an error in our earnings
release dated November 5, 2009 regarding the calculation of the provision
for income taxes for the third quarter of 2009. As a result, the provision
for income taxes for both the three and nine months ended September 30,
2009 was overstated by $0.5 million, and consequently our net income for
each of those periods was understated by the same amount.
To mitigate any confusion from this correction, a copy of our November 5,
2009 earnings release, revised to reflect the above correction, is set
forth below.
W. P. Carey Announces Third Quarter Financial Results
NEW YORK, NY -- November 05, 2009 -- Investment firm W. P. Carey & Co. LLC
(NYSE: WPC) today reported financial results for the third quarter ended
September 30, 2009.
QUARTERLY AND NINE-MONTH RESULTS
-- Cash flows from operating activities for the nine months ended
September 30, 2009 increased to $49.4 million from $47.5 million for the
prior year period.
-- Adjusted cash flow from operating activities for the nine months ended
September 30, 2009 was $71.3 million, compared to $70.1 million for the
comparable period in 2008.
-- Total revenues net of reimbursed expenses for the third quarter of
2009 were $47.7 million, compared to $55.2 million for the third quarter of
2008. Total revenues net of reimbursed expenses for the nine months ended
September 30, 2009 were $142.5 million, compared to $149.4 million for the
comparable period in 2008. Reimbursed expenses are excluded from total
revenues because they have no impact on net income.
-- Net income for the third quarter of 2009 was $13.4 million, compared
to $19.2 million for the same period in 2008. For the nine months ended
September 30, 2009, net income was $46.0 million, compared to $56.1 million
for the comparable period in 2008.
-- Funds from operations (FFO) for the third quarter of 2009 were $30.2
million or $0.75 per diluted share, compared to $33.5 million or $0.83 per
diluted share for the comparable period in 2008. FFO for the nine months
ended September 30, 2009 was $89.2 million or $2.24 per diluted share,
compared to $90.6 million or $2.25 per diluted share for the comparable
period in 2008.
-- We incurred impairment charges of $2.4 million for the third quarter
of 2009 and $4.7 million for the nine months ended September 30, 2009 and
our CPA® REITs incurred impairment charges of $54.1 million for the
quarter and $108.7 million for the nine months. This reduced the amount of
income we recognize from these equity investments by approximately $3.6
million for the third quarter and $6.4 million for the nine-month period.
We received approximately $10.5 million in cash distributions from our
equity ownership in the CPA® REITs for the nine months ended September
30, 2009.
-- Further information concerning FFO and adjusted cash flow from
operating activities, non-GAAP supplemental performance metrics, is
presented in the accompanying tables.
INVESTMENT, FUNDRAISING AND FINANCING ACTIVITY
-- Investment volume, for our own portfolio and on behalf of the CPA®
REITs, for the nine months ended September 30, 2009 was $395.4 million,
compared to $404.0 million for the comparable period in 2008.
-- In the third quarter, we closed two international transactions on
behalf of the REITs -- a $93.6 million sale-leaseback with UK retailer
Tesco plc, our first Hungarian transaction, and a $27.5 million build-to-
suit transaction with UK public transport provider National Express for
their main coach terminal and headquarters building.
-- We continue to raise investor capital through our latest REIT
offering, CPA®:17 -- Global, so that we may take advantage of attractive
investment opportunities that we believe are afforded by the current market
environment. Through October 31, 2009, CPA®:17 -- Global has raised more
than $685 million of its up-to $2 billion offering. For the third quarter
of 2009, we raised $124.6 million, compared to $100.3 million in the second
quarter and $71.5 million in the first quarter of this year.
-- Since the beginning of the credit crunch in September 2008, W. P.
Carey and our CPA® REITs have secured more than $390 million in debt
financings, including a $120 million loan with the Bank of China, New York
Branch for The New York Times Company's Midtown Manhattan headquarters that
was purchased in March 2009.
ASSETS UNDER MANAGEMENT
-- W. P. Carey is the advisor to the CPA® REITs, which had real estate
assets of $7.9 billion and total assets of $8.4 billion as of September 30,
2009.
-- As of September 30, 2009, the occupancy rate of our 16.7 million
square foot owned portfolio was approximately 95%. In addition, for the
92.7 million square feet owned by the CPA® REITs, the occupancy rate was
approximately 97%.
DISTRIBUTIONS
-- The Board of Directors raised the quarterly cash distribution to $0.50
per share for the third quarter of 2009. The distribution was paid on
October 15, 2009 to shareholders of record as of September 30, 2009. This
was our 34th consecutive quarterly dividend increase.
-- Over the past 36 years, W. P. Carey and the CPA® programs have paid
more than $3 billion to investors over 800 cash distributions.
Gordon DuGan, President and CEO of W. P. Carey, said, "While our FFO for
the quarter is down due to lower investment volume for the quarter, our
adjusted cash flow year-to-date is up. Our fundraising for CPA®:17 --
Global continued to increase in the third quarter and we are seeing a
healthy investment pipeline today. We believe our fundraising efforts
provide us the investment capital needed for future acquisitions, which
will allow us to continue to grow our assets under management."
CONFERENCE CALL & WEBCAST
Please call at least 10 minutes prior to call to register.
Time: Thursday, November 5, 2009 at 11:00 AM (ET)
Call-in Number: 800-860-2442
(International) +1-412-858-4600
Webcast: www.wpcarey.com/earnings
Podcast: www.wpcarey.com/podcast
Available after 2:00 PM (ET)
Replay Number: 877-344-7529
(International) +1-412-317-0088
Replay Passcode: 434585#
Replay Available until November 19, 2009 at midnight ET.
W. P. Carey & Co. LLC
W. P. Carey & Co. LLC is an investment firm that provides long-term
sale-leaseback and build-to-suit financing for companies worldwide and
manages a global investment portfolio approaching $10 billion. Publicly
traded on the New York Stock Exchange (WPC), W. P. Carey and its CPA®
series of income-generating, non-traded REITs help companies and private
equity firms release capital tied up in real estate assets. The W. P.
Carey Group's investments are highly diversified, comprising contractual
agreements with approximately 300 long-term corporate obligors spanning 28
industries and 15 countries. http://www.wpcarey.com
Individuals interested in receiving future updates on W. P. Carey via
e-mail can register at www.wpcarey.com/alerts.
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.
W. P. CAREY & CO. LLC
Consolidated Statements of Income (Unaudited)
(in thousands, except share and per share amounts)
Three months ended Nine months ended
September 30, September 30,
---------------------- ----------------------
2009 2008 2009 2008
---------- ---------- ---------- ----------
Revenues
Asset management revenue $ 19,106 $ 20,205 $ 57,441 $ 60,370
Structuring revenue 5,476 10,818 16,250 17,403
Wholesaling revenue 1,869 1,517 4,426 4,145
Reimbursed costs from
affiliates 13,503 11,303 33,747 32,749
Lease revenues 17,448 18,816 52,690 57,187
Other real estate income 3,768 3,834 11,672 10,261
---------- ---------- ---------- ----------
61,170 66,493 176,226 182,115
---------- ---------- ---------- ----------
Operating Expenses
General and administrative (14,970) (17,013) (48,246) (48,242)
Reimbursable costs (13,503) (11,303) (33,747) (32,749)
Depreciation and
amortization (5,936) (6,293) (18,348) (18,460)
Property expenses (2,236) (1,735) (6,235) (5,267)
Impairment charges (2,390) - (4,090) -
Other real estate
expenses (1,758) (1,989) (5,596) (6,204)
---------- ---------- ---------- ----------
(40,793) (38,333) (116,262) (110,922)
---------- ---------- ---------- ----------
Other Income and Expenses
Other interest income 470 753 1,278 2,193
Income from equity
investments in real
estate and CPA® REITs 2,923 2,272 9,866 10,917
Gain on sale of
investments in direct
financing lease - 1,103 - 1,103
Other income and
(expenses) 251 (1,566) 3,532 3,093
Interest expense (3,889) (5,004) (11,600) (14,579)
---------- ---------- ---------- ----------
(245) (2,442) 3,076 2,727
---------- ---------- ---------- ----------
Income from continuing
operations before
income taxes 20,132 25,718 63,040 73,920
Provision for income
taxes (6,018) (5,839) (15,938) (20,405)
---------- ---------- ---------- ----------
Income from continuing
operations 14,114 19,879 47,102 53,515
---------- ---------- ---------- ----------
Discontinued Operations
Income (loss) from
operations of
discontinued properties 70 (40) (30) 3,666
Gain on sale of
real estate - - 343 -
Impairment charges - (538) (580) (538)
---------- ---------- ---------- ----------
Income (loss) from
discontinued operations 70 (578) (267) 3,128
---------- ---------- ---------- ----------
Net Income 14,184 19,301 46,835 56,643
Add: Net loss
attributable
to noncontrolling
interests 186 238 559 578
Less: Net income
attributable to
redeemable
noncontrolling
interests (1,019) (341) (1,357) (1,074)
---------- ---------- ---------- ----------
Net Income Attributable
to W. P. Carey Members $ 13,351 $ 19,198 $ 46,037 $ 56,147
========== ========== ========== ==========
Basic Earnings Per Share
Income from continuing
operations attributable
to W. P. Carey members $ 0.33 $ 0.50 $ 1.16 $ 1.35
Income (loss) from
discontinued operations
attributable to W. P.
Carey members - (0.01) (0.01) 0.08
---------- ---------- ---------- ----------
Net income attributable
to W. P. Carey members $ 0.33 $ 0.49 $ 1.15 $ 1.43
========== ========== ========== ==========
Diluted Earnings Per Share
Income from continuing
operations attributable
to W. P. Carey members $ 0.34 $ 0.49 $ 1.16 $ 1.32
Income (loss) from
discontinued operations
attributable to W. P.
Carey members - (0.01) (0.01) 0.08
---------- ---------- ---------- ----------
Net income attributable
to W. P. Carey members $ 0.34 $ 0.48 $ 1.15 $ 1.40
========== ========== ========== ==========
Weighted Average Shares
Outstanding
Basic 39,727,460 39,294,889 39,163,186 39,125,329
========== ========== ========== ==========
Diluted 40,368,946 40,299,073 39,770,196 40,293,094
========== ========== ========== ==========
Amounts Attributable to
W. P. Carey Members
Income from continuing
operations, net of tax $ 13,281 $ 19,776 $ 46,304 $ 53,019
Income (loss) from
discontinued
operations, net of tax 70 (578) (267) 3,128
---------- ---------- ---------- ----------
Net income $ 13,351 $ 19,198 $ 46,037 $ 56,147
========== ========== ========== ==========
Distributions Declared
Per Share $ 0.500 $ 0.492 $ 1.494 $ 1.461
========== ========== ========== ==========
W. P. CAREY & CO. LLC
Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
Nine months ended
September 30,
-----------------------
2009 2008
---------- ----------
Cash Flows -- Operating Activities
Net income $ 46,835 $ 56,643
Adjustments to net income:
Depreciation and amortization including
intangible assets and deferred financing
costs 18,385 20,412
Income from equity investments in real estate
and CPA® REITs in excess of distributions
received (4,303) (1,224)
Straight-line rent adjustments 1,560 1,718
Management income received in shares of
affiliates (23,451) (30,237)
Gain on sale of real estate and investment
in direct financing lease (343) (1,103)
Gain on extinguishment of debt (6,991) -
Allocation of earnings to profit
sharing interest 3,976 -
Unrealized (gain) loss on foreign currency
transactions, warrants and securities (257) 324
Realized gain on foreign currency
transactions and other (260) (1,567)
Impairment charges 4,670 538
Stock-based compensation expense 7,777 5,894
Decrease in deferred acquisition
revenue received 23,109 46,695
Increase in structuring revenue receivable (8,196) (8,845)
Decrease in income taxes, net (11,137) (6,527)
Decrease in settlement provision - (29,979)
Net changes in other operating assets
and liabilities (1,991) (5,250)
---------- ----------
Net cash provided by operating activities 49,383 47,492
---------- ----------
Cash Flows -- Investing Activities
Distributions received from equity
investments in real estate and CPA®
REITs in excess of equity income 33,917 7,566
Capital contributions to equity investments (3,709) (1,361)
Purchases of real estate and equity
investments in real estate (39,632) (184)
Capital expenditures (6,110) (8,355)
VAT refunded on purchase of real estate - 3,189
Proceeds from sale of real estate and
securities 6,927 5,062
Proceeds from transfer of profit
sharing interest 21,928 -
Funds released from escrow in connection
with the sale of property - 636
Payment of deferred acquisition revenue
to affiliate - (120)
---------- ----------
Net cash provided by investing activities 13,321 6,433
---------- ----------
Cash Flows -- Financing Activities
Distributions paid (58,787) (67,987)
Contributions from noncontrolling interests 2,137 1,957
Distributions to noncontrolling interests (4,589) (1,659)
Distributions to profit sharing interest (5,372) -
Scheduled payments of mortgage principal (7,527) (7,196)
Proceeds from mortgages and credit facilities 158,994 122,968
Prepayments of mortgage principal and credit
facilities (137,436) (102,427)
Proceeds from loan from affiliates 1,625 -
Repayment of loan from affiliates - (7,569)
Payment of financing costs, net of
deposits refunded (849) (375)
Proceeds from issuance of shares 1,356 21,242
Windfall tax benefits associated with
stock-based compensation awards 275 697
Repurchase and retirement of shares (10,686) (5,134)
---------- ----------
Net cash used in financing activities (60,859) (45,483)
---------- ----------
Change in Cash and Cash Equivalents
During the Period
Effect of exchange rate changes on cash 364 (94)
---------- ----------
Net increase in cash and cash equivalents 2,209 8,348
Cash and cash equivalents, beginning of period 16,799 12,137
---------- ----------
Cash and cash equivalents, end of period $ 19,008 $ 20,485
========== ==========
W. P. CAREY & CO. LLC
Financial Highlights (Unaudited)
(in thousands, except share and per share amounts)
These financial highlights include non-GAAP financial measures, including
earnings before interest, taxes, depreciation and amortization ("EBITDA"),
funds from operations ("FFO") and adjusted cash flow from operating
activities. A description of these non-GAAP financial measures and
reconciliations to the most directly comparable GAAP measures is provided
on the following pages.
Three months ended Nine months ended
September 30, September 30,
---------------------- ----------------------
2009 2008 2009 2008
---------- ---------- ---------- ----------
EBITDA
Investment management $ 11,789 $ 18,207 $ 35,287 $ 48,726
Real estate ownership 17,412 18,229 56,791 61,170
---------- ---------- ---------- ----------
Total $ 29,201 $ 36,436 $ 92,078 $ 109,896
========== ========== ========== ==========
FFO
Investment management $ 12,788 $ 17,579 $ 38,748 $ 37,704
Real estate ownership 17,445 15,963 50,455 52,919
---------- ---------- ---------- ----------
Total $ 30,233 $ 33,542 $ 89,203 $ 90,623
========== ========== ========== ==========
EBITDA Per Share (Diluted)
Investment management $ 0.29 $ 0.45 $ 0.89 $ 1.21
Real estate ownership 0.43 0.45 1.43 1.52
---------- ---------- ---------- ----------
Total $ 0.72 $ 0.90 $ 2.32 $ 2.73
========== ========== ========== ==========
FFO Per Share (Diluted)
Investment management $ 0.32 $ 0.43 $ 0.97 $ 0.94
Real estate ownership 0.43 0.40 1.27 1.31
---------- ---------- ---------- ----------
Total $ 0.75 $ 0.83 $ 2.24 $ 2.25
========== ========== ========== ==========
Adjusted Cash Flow From
Operating Activities
Adjusted cash flow $ 71,300 $ 70,081
========== ==========
Adjusted cash flow per
share (diluted) $ 1.79 $ 1.74
========== ==========
Distributions declared per
share $ 1.494 $ 1.461
========== ==========
Payout ratio (distributions
per share/adjusted cash
flow per share) 83% 84%
========== ==========
W. P. CAREY & CO. LLC
Reconciliation of Net Income to EBITDA (Unaudited)
(in thousands, except share and per share amounts)
Three months ended Nine months ended
September 30, September 30,
---------------------- ----------------------
2009 2008 2009 2008
---------- ---------- ---------- ----------
Investment Management
Net income from investment
management attributable
to W. P. Carey members $ 5,059 $ 11,201 $ 17,718 $ 25,255
Adjustments:
Provision for income
taxes 5,606 5,846 14,811 20,186
Depreciation and
amortization 1,124 1,160 2,758 3,285
---------- ---------- ---------- ----------
EBITDA - investment
management $ 11,789 $ 18,207 $ 35,287 $ 48,726
========== ========== ========== ==========
EBITDA per share (diluted) $ 0.29 $ 0.45 $ 0.89 $ 1.21
========== ========== ========== ==========
Real Estate Ownership
Net income from real estate
ownership attributable to
W. P. Carey members $ 8,292 $ 7,997 $ 28,319 $ 30,892
Adjustments:
Interest expense 3,889 5,004 11,600 14,579
Provision for income
taxes 412 (7) 1,127 219
Depreciation and
amortization 4,812 5,133 15,590 15,175
Reconciling items
attributable to
discontinued operations 7 102 155 305
---------- ---------- ---------- ----------
EBITDA - real estate
ownership $ 17,412 $ 18,229 $ 56,791 $ 61,170
========== ========== ========== ==========
EBITDA per share (diluted) $ 0.43 $ 0.45 $ 1.43 $ 1.52
========== ========== ========== ==========
Total Company
EBITDA $ 29,201 $ 36,436 $ 92,078 $ 109,896
========== ========== ========== ==========
EBITDA per share (diluted) $ 0.72 $ 0.90 $ 2.32 $ 2.73
========== ========== ========== ==========
Diluted weighted average
shares outstanding 40,368,946 40,299,073 39,770,196 40,293,094
========== ========== ========== ==========
Non-GAAP Financial Disclosure
EBITDA as disclosed represents earnings before interest, taxes,
depreciation and amortization. We believe that EBITDA is a useful
supplemental measure for assessing the performance of our business
segments, although it does not represent net income that is computed in
accordance with GAAP. Accordingly, EBITDA should not be considered an
alternative for net income as an indicator of our financial performance.
EBITDA may not be comparable to similarly titled measures of other
companies.
W. P. CAREY & CO. LLC
Reconciliation of Net Income to Funds From Operations (FFO) (Unaudited)
(in thousands, except share and per share amounts)
Three months ended Nine months ended
September 30, September 30,
---------------------- ----------------------
2009 2008 2009 2008
---------- ---------- ---------- ----------
Investment Management
Net income from investment
management attributable
to W. P. Carey members $ 5,059 $ 11,201 $ 17,718 $ 25,255
Amortization, deferred
taxes and other non-cash
charges 1,247 2,290 5,166 3,777
FFO from equity investments 6,482 4,088 15,864 8,672
---------- ---------- ---------- ----------
FFO -- investment
management $ 12,788 $ 17,579 $ 38,748 $ 37,704
========== ========== ========== ==========
FFO per share (diluted) $ 0.32 $ 0.43 $ 0.97 $ 0.94
========== ========== ========== ==========
Real Estate Ownership
Net income from real estate
ownership attributable
to W. P. Carey members $ 8,292 $ 7,997 $ 28,319 $ 30,892
Gain on sale of direct
financing lease - (1,103) - (1,103)
Gain on sale of real
estate, net - - (343) -
Gain on extinguishment
of debt, net (a) - - (2,796) -
Depreciation, amortization
and other non-cash charges 4,189 6,764 14,537 15,714
Straight-line and other
rent adjustments 396 (613) 808 715
Impairment charges 2,390 538 4,670 538
FFO from equity investments 2,274 2,551 5,687 6,679
Noncontrolling interests'
share of FFO (96) (171) (427) (516)
---------- ---------- ---------- ----------
FFO -- real estate
ownership $ 17,445 $ 15,963 $ 50,455 $ 52,919
========== ========== ========== ==========
FFO per share (diluted) $ 0.43 $ 0.40 $ 1.27 $ 1.31
========== ========== ========== ==========
Total Company
FFO $ 30,233 $ 33,542 $ 89,203 $ 90,623
========== ========== ========== ==========
FFO per share (diluted) $ 0.75 $ 0.83 $ 2.24 $ 2.25
========== ========== ========== ==========
Diluted weighted average
shares outstanding 40,368,946 40,299,073 39,770,196 40,293,094
========== ========== ========== ==========
Non-GAAP Financial Disclosure
Funds from operations (FFO) is a non-GAAP financial measure that is
commonly used in evaluating real estate companies. Although the National
Association of Real Estate Investment Trusts (NAREIT) has published a
definition of FFO, real estate companies often modify this definition as
they seek to provide financial measures that meaningfully reflect their
operations. FFO should not be considered as an alternative to net income as
an indication of a company's operating performance or to cash flow from
operating activities as a measure of its liquidity. It should be used in
conjunction with GAAP net income. FFO disclosed by other REITs may not be
comparable to our FFO calculation.
NAREIT's definition of FFO adjusts GAAP net income to exclude depreciation
and gains/losses from the sales of properties and adjusts for FFO
applicable to unconsolidated partnerships and joint ventures. We calculate
FFO in accordance with this definition and then 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, impairment charges on real estate
and unrealized foreign currency exchange gains and losses. 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 that have no impact on cash
flows.
(a) In January 2009, Carey Storage repaid, in full, the $35 million
outstanding balance on its secured credit facility for $28 million and
recognized a gain of $7 million on the repayment of this debt at a
discount, inclusive of profit sharing interest of $4.2 million.
W. P. CAREY & CO. LLC
Adjusted Cash Flow from Operating Activities (Unaudited)
(in thousands, except share and per share amounts)
Nine months ended
September 30,
-----------------------
2009 2008
---------- ----------
Cash flow from operating activities
-- as reported $ 49,383 $ 47,492
Adjustments:
Distributions received from equity investments
in real estate in excess of equity income (a) 15,285 7,265
Contributions received from noncontrolling
interests, net (b) (382) -
Changes in working capital (c) 7,014 6,603
CPA®:16 - Global performance adjustment,
net (d) - (12,291)
Settlement payment (e) - 21,012
---------- ----------
Adjusted cash flow from operating activities $ 71,300 $ 70,081
========== ==========
Adjusted cash flow per share (diluted) $ 1.79 $ 1.74
========== ==========
Distributions declared per share $ 1.494 $ 1.461
========== ==========
Payout ratio (distributions per share/adjusted
cash flow per share) 83% 84%
========== ==========
Diluted weighted average shares outstanding 39,770,196 40,293,094
========== ==========
Non-GAAP Financial Disclosure
Adjusted cash flow from operating activities is a non-GAAP financial
measure that represents cash flow from operating activities on a GAAP basis
adjusted for certain timing differences and deferrals as described below.
We believe that adjusted cash flow from operating activities is a useful
supplemental measure for assessing the cash flow generated from our core
operations and is used in evaluating distributions to shareholders.
Adjusted cash flow from operating activities should not be considered as an
alternative for cash flow from operating activities computed on a GAAP
basis as a measure of our liquidity. Adjusted cash flow from operating
activities may not be comparable to similarly titled measures of other
companies.
(a) We take a substantial portion of our asset management revenue in shares
of the CPA® REIT funds. To the extent we receive distributions in
excess of the equity income that we recognize, we include such amounts
in our evaluation of cash flow from core operations.
(b) Represents noncontrolling interests' share of contributions/
distributions made by ventures that we consolidate in our financial
statements. This adjustment in the calculation of adjusted cash flow
from operating activities was introduced during the fourth quarter of
2008 because we believe that it results in a more accurate presentation
of this supplemental measure.
(c) Timing differences arising from the payment of certain liabilities in
a period other than that in which the expense is recognized in
determining net income may distort the actual cash flow that our core
operations generate. We adjust our GAAP cash flow from operating
activities to record such amounts in the period in which the liability
was actually incurred. We believe this is a fairer measure of
determining our cash flow from core operations.
(d) Amounts deferred in lieu of CPA®:16 -- Global achieving its
performance criterion, net of a 45% tax provision. In determining cash
flow generated from our core operations, we believe it is more
appropriate to normalize cash flow for the impact of CPA®:16 --
Global achieving its performance criterion, rather than recognizing
the entire deferred amount in the quarter in which the performance
criterion was met (second quarter of 2007), as this revenue was
actually earned over a three year period.
(e) In March 2008, we entered into a settlement with the SEC with respect
to all matters relating to their investigation. As a result, we paid
$30 million in the first quarter of 2008 and recognized an offsetting
$9 million tax benefit in the same period.
COMPANY CONTACT:
Kristina McMenamin
W. P. Carey & Co. LLC
212-492-8995
Email Contact
PRESS CONTACT:
Guy Lawrence
Ross & Lawrence
212-308-3333
Email Contact