W. P. Carey Announces Third Quarter Financial Results

W. P. Carey Announces Third Quarter Financial Results 
Merger With CPA(R):15 and REIT Conversion Completed September 28,
2012 
NEW YORK, NY -- (Marketwire) -- 11/08/12 --  W. P. Carey Inc. (NYSE:
WPC), a real estate investment trust ("REIT"), today reported
financial results for the third quarter ended September 30, 2012.
Results do not fully reflect the impact of the merger with its
affiliate, Corporate Property Associates 15 Incorporated
("CPA(R):15"), which closed on September 28, 2012. Results for the
combined companies can be accessed at
http://ir.wpcarey.com/Cache/c15118855.html. 
QUARTERLY RESULTS 


 
--  Funds from operations -- as adjusted (AFFO) for the third quarter of
    2012 decreased compared to the third quarter of 2011, to $33.9 million
    or $0.82 per diluted share from $41.6 million or $1.03 per diluted
    share, respectively. AFFO for the nine months ended September 30, 2012
    was $101.8 million or $2.48 per diluted share, compared to $153.6
    million or $3.80 per diluted share for the comparable period in 2011.
    The higher levels in the 2011 periods were primarily due to $52.5
    million of revenues earned from the merger of two of our managed
    CPA(R) REITS in May 2011.
--  Cash flow from operating activities for the nine months ended
    September 30, 2012 was $31.7 million compared to $62.7 million for the
    prior year period.
--  Total revenues net of reimbursed expenses for the third quarter of
    2012 was $51.2 million compared to $62.0 million for the third quarter
    of 2011. Total revenues net of reimbursed expenses for the nine months
    ended September 30, 2012 was $148.9 million compared to $219.4 million
    for the prior year period. Reimbursed expenses are excluded from total
    revenues because they have no impact on net income.
--  Total adjusted revenue, or revenue on a pro-rata basis, for the nine
    months ended September 30, 2012 was $233.5 million compared to $243.9
    million for the prior year period.
--  Net income attributable to W. P. Carey common stockholders for the
    third quarter of 2012 was $2.6 million, compared to $25.2 million for
    the same period in 2011. For the nine months ended September 30, 2012,
    net income was $46.7 million compared to $130.0 million for the
    compa
rable period in 2011.
--  We received approximately $8.5 million in cash distributions from our
    equity ownership in the CPA(R) REITs for the quarter ended
    September 30, 2012 compared with $6.1 million for the comparable
    period in 2011.
--  Further information concerning AFFO and total adjusted revenue --
    non-GAAP supplemental performance metrics -- is presented in the
    accompanying tables.

  
Commenting on the Company's quarterly results, Trevor Bond, President
and Chief Executive Officer, noted, "The merger and REIT conversion
were the strategic highlights of our third quarter and positively
impacted the liquidity in our stock and interest from institutional
and individual investors as expected. From a results perspective,
underscoring the cyclicality of the incentive fees we earn through
fund liquidations and the structuring revenues we earn through new
investments, our headline numbers are off from last year, primarily
because we earned a $52 million fee in 2011 following the merger of
CPA(R):14 and CPA(R):16 - Global and because investment volume has
been lighter so far this year compared to the same period last year.
That said, the pipeline going into the fourth quarter is strong,
although we know that we can't count on a deal until it's closed, of
course. More importantly, the figures by which we measure the
performance of our core business, which are set forth in the
supplemental information package that we filed today, demonstrate
continued stability and remain in line with growth expectations,
especially when one looks at the pro forma year-to-date performance
of the combined companies. We look forward to breaking those numbers
down in more detail for our investors on today's earnings call." 
CONVERSION TO REIT AND MERGER WITH CPA(R):15  


 
--  W. P. Carey's conversion to a REIT and merger with CPA(R):15 closed
    on September 28, 2012 and W. P. Carey Inc. commenced trading on the
    New York Stock Exchange as a REIT effective October 1, 2012.
--  As a result of our conversion to REIT status, W. P. Carey was
    immediately eligible for inclusion in the FTSE NAREIT All REITs index
    and was added to the MSCI US REIT and MSCI Mid Cap 450 Indices on
    October 15, 2012.
--  Unaudited combined company AFFO for the nine months ended September
    30, 2012 would have been $2.78 per share.

  
W. P. CAREY OWNED PORTFOLIO UPDATE 


 
--  In the third quarter of 2012, W. P. Carey acquired five retail stores
    leased to Walgreen Co. The properties, comprising a total of
    approximately 74,000 square feet, are located in Virginia Beach,
    Virginia; Florence, Alabama; Snellville, Georgia; Concord, North
    Carolina; and Rockport, Texas. The purchase price was approximately
    $25 million.
--  During the third quarter, W. P. Carey secured approximately $42
    million represented refinancing of maturing debt on three properties;
    interest rates on these re-financings averaged more than 190 basis
    points below the rates on existing financings. Additionally, financing
    of properties used primarily to acquire a joint venture interest from
    an unrelated third party was $140 million.
--  The W. P. Carey owned portfolio currently consists of 430 properties
    comprising 39 million square feet leased to more than 130 corporate
    tenants. The average lease term of the portfolio has increased to 9.1
    years and the occupancy rate is approximately 98.4%.

  
ASSET MANAGEMENT UPDATE  


 
--  W. P. Carey is the advisor to the CPA(R) REITs and CWI, which had
    aggregate real estate assets of $7.3 billion and total assets of $7.8
    billion as of September 30, 2012.
--  The average occupancy rate for the 81 million square feet owned by the
    CPA(R) REITs was approximately 97.9%.
--  The W. P. Carey Group's assets under ownership and management total
    approximately $13.3 billion as of September 30, 2012.

  
CPA(R):17 - GLOBAL ACTIVITY 


 
--  We have raised more than $2.6 billion on behalf of CPA(R):17 -
    Global since beginning fundraising in December 2007.
--  Investment volume for CPA(R):17 - Global in the third quarter of
    2012 was approximately $173.7 million. This includes acquisitions of
    an automotive dealership portfolio of $66 million, an industrial
    headquarters facility located in Avon, Ohio leased to Bearing
    Technologies, LLC, two for-profit education facilities located in
    Savannah, Georgia and Montgomery, Alabama, and a corporate
    headquarters building in Warrenville, Illinois, as well as financing
    for the construction of an industrial warehouse located in Zary,
    Poland.

  
CAREY WATERMARK INVESTORS ACTIVITY 


 
--  From the beginning of its initial public offering through November 6,
    2012, we have raised approximately $130 million on behalf of Carey
    Watermark Investors ("CWI"), our lodging-focused non-traded REIT
    offering and invested approximately $128 million.

  
DISTRIBUTIONS 


 
--  Our Board of Directors raised the quarterly cash distribution to
    $0.650 per share for the third quarter of 2012. The distribution --
    our 46th consecutive quarterly increase -- represented a 15% increase
    and was paid on October 16, 2012 to shareho
lders of record as of
    October 2, 2012.

  
CONFERENCE CALL & WEBCAST
 Please call at least 10 minutes prior to
call to register.
 Time: Thursday, November 8, 2012 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: 10019678
 Replay
Available until November 22, 2012 at 9:00 AM (ET). 
W. P. Carey Inc.  
W. P. Carey Inc. is a publicly traded REIT (NYSE: WPC) that provides
long-term sale-leaseback and build-to-suit financing for companies
worldwide and manages an investment portfolio of approximately $13.3
billion. W. P. Carey Inc. is the successor to W. P. Carey & Co. LLC,
which had its origins in 1973. The largest owner/manager of net lease
assets, WPC's corporate finance focused credit and real estate
underwriting process is a constant that has been successfully
leveraged across a wide variety of industries and property types. Our
portfolio of long-term leases with creditworthy tenants has an
established history of generating stable cash flows that have enabled
the Company to deliver consistent and rising dividend income to
investors for nearly four decades. 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. Examples of such
forward-looking statements include, but are not limited to, the
statements made by Mr. Bond. 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 INC.                              
                                                                            
               CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)                
             (in thousands, except share and per share amounts)             
                                                                            
                            Three Months Ended         Nine Months Ended    
                               September 30,             September 30,      
                         ------------------------  ------------------------ 
                             2012         2011         2012         2011    
                         -----------  -----------  -----------  ----------- 
Revenues                                                                    
  Asset management                                                          
   revenue               $    15,850  $    14,840  $    47,088  $    51,279 
  Structuring revenue          8,316       21,221       19,576       42,901 
  Incentive, termination                                                    
   and subordinated                                                         
   disposition revenue             -            -            -       52,515 
  Wholesaling revenue          4,012        2,586       11,878        8,788 
  Reimbursed costs from                                                     
   affiliates                 19,879       14,707       59,100       49,485 
  Lease revenues              16,714       17,001       51,265       46,682 
  Other real estate                                                         
   income                      6,265        6,303       19,089       17,212 
                         -----------  -----------  -----------  ----------- 
                              71,036       76,658      207,996      268,862 
                         -----------  -----------  -----------  ----------- 
Operating Expenses                                                          
  General and                                                               
   administrative            (54,826)     (25,187)    (108,317)     (71,095)
  Reimbursable costs         (19,879)     (14,707)     (59,100)     (49,485)
  Depreciation and                                                          
   amortization               (6,571)      (6,323)     (19,928)     (16,552)
  Property expenses           (2,426)      (3,231)      (7,863)      (8,547)
  Other real estate                                                         
   expenses                   (2,600)      (2,725)      (7,530)      (8,224)
  Impairment charges          (5,535)           -       (5,535)           - 
                         -----------  -----------  -----------  ----------- 
                             (91,837)     (52,173)    (208,273)    (153,903)
                         -----------  -----------  -----------  ----------- 
Other Income and                                                            
 Expenses                                                                   
  Other interest income          252          323          910        1,558 
  Income from equity                                                        
   investments in real                                                      
   estate and the REITs       10,477       16,068       52,808       37,356 
  Gain on change in                                                         
   control of interests       20,794            -       20,794       27,859 
  Other income and                                                          
   (expenses)                    502         (294)       2,026        4,945 
  Interest expense            (7,868)      (5,989)     (22,459)     (15,660)
                         -----------  -----------  -----------  ----------- 
                              24,157       10,108       54,079       56,058 
                         -----------  -----------  -----------  ----------- 
  Income from continuing                                                    
   operations before                                                        
   income taxes                3,356       34,593       53,802      171,017 
  Provision for income                                                      
   taxes                        (379)      (5,929)        (192)     (38,526)
                         -----------  -----------  -----------  ----------- 
  Income from continuing                                                    
   operations                  2,977       28,664       53,610      132,491 
                         -----------  -----------  -----------  ----------- 
Discontinued Operations                                                     
  (Loss) income from                                                        
   operations of                                                            
   disconti
nued                                                             
   properties                   (342)         916         (870)       1,146 
  (Loss) gain on sale of                                                    
   real estate                  (409)         612         (888)       1,272 
  Impairment charges               -       (4,934)      (6,727)      (4,975)
                         -----------  -----------  -----------  ----------- 
  Loss from discontinued                                                    
   operations, net of                                                       
   tax                          (751)      (3,406)      (8,485)      (2,557)
                         -----------  -----------  -----------  ----------- 
Net Income                     2,226       25,258       45,125      129,934 
  Add: Net loss                                                             
   attributable to                                                          
   noncontrolling                                                           
   interests                     325          581        1,383        1,295 
  Less: Net loss                                                            
   (income) attributable                                                    
   to redeemable                                                            
   noncontrolling                                                           
   interest                       37         (637)         146       (1,241)
                         -----------  -----------  -----------  ----------- 
Net Income Attributable                                                     
 to W. P. Carey Common                                                      
 Stockholders            $     2,588  $    25,202  $    46,654  $   129,988 
                         ===========  ===========  ===========  =========== 
                                                                            
Basic Earnings Per Share                                                    
  Income from continuing                                                    
   operations                                                               
   attributable to W. P.                                                    
   Carey common                                                             
   stockholders          $      0.08  $      0.70  $      1.35  $      3.28 
  Loss from discontinued                                                    
   operations                                                               
   attributable to W. P.                                                    
   Carey common                                                             
   stockholders                (0.02)       (0.08)       (0.21)       (0.06)
                         -----------  -----------  -----------  ----------- 
  Net income                                                                
   attributable to W. P.                                                    
   Carey common                                                             
   stockholders          $      0.06  $      0.62  $      1.14  $      3.22 
                         ===========  ===========  ===========  =========== 
                                                                            
Diluted Earnings Per                                                        
 Share                                                                      
  Income from continuing                                                    
   operations                                                               
   attributable to W. P.                                                    
   Carey common                                                             
   stockholders          $      0.08  $      0.70  $      1.33  $      3.25 
  Loss from discontinued                                                    
   operations                                                               
   attributable to W. P.                                                    
   Carey common                                                             
   stockholders                (0.02)       (0.08)       (0.21)       (0.06)
                         -----------  -----------  -----------  ----------- 
  Net income                                                                
   attributable to W. P.                                                    
   Carey common                                                             
   stockholders          $      0.06  $      0.62  $      1.12  $      3.19 
                         ===========  ===========  ===========  =========== 
                                                                            
Weighted Average Shares                                                     
 Outstanding                                                                
  Basic                   40,366,298   39,861,064   40,398,433   39,794,506 
                         ===========  ===========  ===========  =========== 
  Diluted                 41,127,404   40,404,520   41,029,578   40,424,316 
                         ===========  ===========  ===========  =========== 
                                                                            
Amounts Attributable to                                                     
 W. P. Carey Common                                                         
 Stockholders                                                               
  Income from continuing                                                    
   operations, net of                                                       
   tax                   $     3,339  $    28,608  $    55,139  $   132,545 
  Loss from discontinued                                                    
   operations, net of                                                       
   tax                          (751)      (3,406)      (8,485)      (2,557)
                         -----------  -----------  -----------  ----------- 
  Net income             $     2,588  $    25,202  $    46,654  $   129,988 
                         ===========  ===========  ===========  =========== 
                                                                            
Distributions Declared                                                      
 Per Common Share        $     0.650  $     0.560  $     1.782  $     1.622 
                         ===========  ===========  ===========  =========== 
                                                                            
                                                                            
                                                                            
                              W. P. CAREY INC.                              
                                                                            
             CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)              
   
                            (in thousands)                               
                                                                            
                                                      Nine Months Ended     
                                                        September 30,       
                                                 -------------------------- 
                                                     2012          2011     
                                                 ------------  ------------ 
Cash Flows - Operating Activities                                           
Net income                                       $     45,125  $    129,934 
Adjustments to net income:                                                  
  Depreciation and amortization, including                                  
   intangible assets and deferred financing                                 
   costs                                               22,532        20,160 
  Income from equity investments in real estate                             
   and the REITs in excess of distributions                                 
   received                                           (18,557)         (835)
  Straight-line rent and financing lease                                    
   adjustments                                         (2,229)       (2,039)
  Amortization of deferred revenue                     (7,077)       (3,932)
  Gain on deconsolidation of a subsidiary                   -        (1,008)
  Gain on sale of real estate                          (1,564)         (264)
  Unrealized gain on foreign currency                                       
   transactions and others                                (17)          (79)
  Realized loss (gain) on foreign currency                                  
   transactions and others                                594        (1,134)
  Management and disposition income received in                             
   shares of affiliates                               (21,272)      (62,493)
  Gain on conversion of shares                            (15)       (3,834)
  Gain on change in control of interests              (20,794)      (27,859)
  Impairment charges                                   12,262         4,975 
  Stock-based compensation expense                     19,560        13,026 
  Deferred acquisition revenue received                17,017        18,128 
  Increase in structuring revenue receivable           (8,502)      (17,732)
  (Decrease) increase in income taxes, net            (14,885)        5,907 
  Net changes in other operating assets and                                 
   liabilities                                          9,561        (8,269)
                                                 ------------  ------------ 
Net cash provided by operating activities              31,739        62,652 
                                                 ------------  ------------ 
                                                                            
Cash Flows - Investing Activities                                           
  Cash paid to shareholders of CPA(R):15 in                                   
   connection with the Merger                        (152,356)            - 
  Cash acquired in connection with the Merger         178,945             - 
  Distributions received from equity investments                            
   in real estate and the REITs in excess of                                
   equity income                                       27,241        13,870 
  Capital contributions to equity investments            (377)       (2,297)
  Purchase of interests in CPA(R):16 - Global                 -      (121,315)
  Purchases of real estate and equity                                       
   investments in real estate                          (2,679)      (24,323)
  VAT refunded in connection with acquisitions                              
   of real estate                                           -         5,035 
  Capital expenditures                                 (2,930)       (6,731)
  Cash acquired on acquisition of subsidiaries              -            57 
  Proceeds from sale of real estate                    32,586        10,998 
  Proceeds from sale of securities                        314           777 
  Funding of short-term loans to affiliates                 -       (96,000)
  Proceeds from repayment of short-term loans to                            
   affiliates                                               -        95,000 
  Funds placed in escrow                              (11,716)       (5,282)
  Funds released from escrow                           13,540         2,326 
                                                 ------------  ------------ 
Net cash provided by (used in) investing                                    
 activities                                            82,568      (127,885)
                                                 ------------  ------------ 
                                                                            
Cash Flows - Financing Activities                                           
  Distributions paid                                  (69,180)      (63,060)
  Contributions from noncontrolling interests           2,319         2,341 
  Distributions paid to noncontrolling interests       (1,866)       (5,310)
  Purchase of noncontrolling interest                       -        (7,502)
  Purchase of treasury stock from related party       (25,000)            - 
  Scheduled payments of mortgage principal            (12,455)      (22,893)
  Proceeds from mortgage financing                      1,250        20,848 
  Proceeds from senior credit facility                215,000       251,410 
  Repayments of senior credit facility                (30,000)     (140,000)
  Payment of financing costs                           (1,687)       (1,562)
  Proceeds from issuance of shares                      5,964         1,034 
  Windfall tax benefit associated with stock-                               
   based compensation awards                            8,865         2,051 
                                                 ------------  ------------ 
Net cash provided by financing activities              93,210        37,357 
                                                 ------------  ------------ 
                                                                            
Change in Cash and Cash Equivalents During the                              
 Period                                                                     
    Effect of exchange rate changes on cash               (70)          278 
                                                 ------------  ------------ 
    Net increase (decrease) in cash and cash                                
     equivalents                                      207,447       (27,598)
  Cash and cash equivalents, beginning of period       29,297        64,693 
                                                 ------------  ------------ 
  Cash and cash equivalents, end of period       $    236,744  $     37,095 
                                                 ============  ============ 
                                                                            
                                                                            
                                                                            
                              W. P. CAREY INC.                              
                                                                            
                      Financial Highlights (Unaudited)                      
                  (in thousands, except per share amounts)                  

 
These financial highlights include non-GAAP financial measures,
including earnings before interest, taxes, depreciation and
amortization ("EBITDA") a
nd funds from operations -- as adjusted
("AFFO"). 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,    
                              ----------------------  ----------------------
                                 2012        2011        2012        2011   
                              ----------  ----------  ----------  ----------
EBITDA (a)                                                                  
Investment management         $    1,465  $   15,006  $    7,928  $   90,074
Real estate ownership             16,132      29,646      82,282     114,644
                              ----------  ----------  ----------  ----------
Total                         $   17,597  $   44,652  $   90,210  $  204,718
                              ==========  ==========  ==========  ==========
                                                                            
AFFO (a)                                                                    
Investment management         $   (4,513) $   14,065  $    6,257  $   79,084
Real estate ownership             38,432      27,485      95,553      74,559
                              ----------  ----------  ----------  ----------
Total                         $   33,919  $   41,550  $  101,810  $  153,643
                              ==========  ==========  ==========  ==========
                                                                            
EBITDA Per Share (Diluted)                                                  
 (a)                                                                        
Investment management         $     0.04  $     0.37  $     0.19  $     2.23
Real estate ownership               0.39        0.73        2.01        2.83
                              ----------  ----------  ----------  ----------
Total                         $     0.43  $     1.10  $     2.20  $     5.06
                              ==========  ==========  ==========  ==========
                                                                            
AFFO Per Share (Diluted) (a)                                                
Investment management         $    (0.11) $     0.35  $     0.15  $     1.96
Real estate ownership               0.93        0.68        2.33        1.84
                              ----------  ----------  ----------  ----------
Total                         $     0.82  $     1.03  $     2.48  $     3.80
                              ==========  ==========  ==========  ==========
                                                                            
Distributions declared                                $   92,856  $   42,561
                                                      ==========  ==========

 
__________ 


 
 (a) Effective April 1, 2012, we include cash distributions and deferred    
     revenue received and earned from the operating partnerships of CPA(R):16 
     - Global, CPA(R):17 - Global and CWI in our Real Estate Ownership        
     segment. Results of operations for the prior year periods have been    
     reclassified to conform to the current period presentation.            
     Additionally, during the third quarter of 2011, CPA(R):16 - Global       
     finalized its assessment of the fair values of the assets acquired and 
     liabilities assumed in connection with the CPA(R):14/16 merger and made  
     certain adjustments during that quarter. Our proportionate share of the
     adjustments before income taxes was approximately $2.6 million. In     
     accordance with current accounting guidance, we have retrospectively   
     adjusted our results of operations in our Real Estate Ownership segment
     for the three and nine months ended September 30, 2011 to include such 
     adjustments.                                                           
                                                                            
                                                                            
                                                                            
                              W. P. CAREY INC.                              
                                                                            
             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,     
                          ------------------------  ------------------------
                              2012         2011         2012         2011   
                          -----------  -----------  -----------  -----------
Investment Management                                                       
Net income from                                                             
 investment management                                                      
 attributable to W. P.                                                      
 Carey stockholders(a)    $       661  $     9,112  $     7,266  $    49,075
Adjustments:                                                                
  (Benefit from)                                                            
   provision for income                                                     
   taxes                         (133)       5,075       (2,155)      38,511
  Depreciation and                                                          
   amortization                   937          819        2,817        2,488
                          -----------  -----------  -----------  -----------
  EBITDA - investment                                                       
   management             $     1,465  $    15,006  $     7,928  $    90,074
                          ===========  ===========  ===========  ===========
  EBITDA per share                                                          
   (diluted)              $      0.04  $      0.37  $      0.19  $      2.23
                          ===========  ===========  ===========  ===========
                                                                            
Real Estate Ownership                                                       
Net income from real                                                        
 estate ownership                                                           
 attributable to W. P.                                                      
 Carey stockholders(a)    $     1,927  $    16,090  $    39,388  $    80,913
 Adjustments:                                                               
  Interest expense              7,868        5,989       22,459       15,660
  Provision for income                                                      
   taxes                          512          854        2,347           15
  Depreciation and                                                          
   amortization                 5,634        5,504       17,111       14,064
  Reconciling items                                                         
   attributable to                                                          
   discontinued                                                             
   operations                     191        1,209          977        3,992
                          -----------  -----------  -----------  -----------
EBITDA - real estate                                                        
 ownership                $    16,132  $    29,646  $    82,282  $   114,644
                          ===========  ===========  ===========  ===========
EBITDA per share                                                            
 (diluted)                $      0.39  $      0.73  $      2.01  $      2.83
                          ===========  ===========  ===========  ===========
                                                                            
Total Company                                                               
EBITDA                    $    17,597  $    44,652  $    90,210  $   204,718
                          ===========  ===========  ===========  ===========
EBITDA per share                                                            
 (diluted)                $      0.43  $      1.10  $      2.20  $      5.06
                          ===========  ===========  ===========  ===========
Diluted weighted average                                                    
 shares outstanding        41,127,404   40,404,520   41,029,578   40,424,31
6
                          ===========  ===========  ===========  ===========

 
__________ 


 
 (a) Effective April 1, 2012, we include cash distributions and deferred    
     revenue received and earned from the operating partnerships of CPA(R):16 
     - Global, CPA(R):17 - Global and CWI in our Real Estate Ownership        
     segment. Results of operations for the prior year periods have been    
     reclassified to conform to the current period presentation.            
     Additionally, during the third quarter of 2011, CPA(R):16 - Global       
     finalized its assessment of the fair values of the assets acquired and 
     liabilities assumed in connection with the CPA(R):14/16 merger and made  
     certain adjustments during that quarter. Our proportionate share of the
     adjustments before income taxes was approximately $2.6 million. In     
     accordance with current accounting guidance, we have retrospectively   
     adjusted our results of operations in our Real Estate Ownership segment
     for the three and nine months ended September 30, 2011 to include such 
     adjustments.                                                           

 
Non-GAAP Financial Disclosure 
EBITDA as disclosed represents earnings before interest, taxes,
depreciation and amortization. We believe that EBITDA is a useful
supplemental measure to investors and analysts for assessing the
performance of our business segments, although it does not represent
net income that is computed in accordance with GAAP, because it
removes the impact of our capital structure and asset base from our
operating results and because it is helpful when comparing our
operating performance to that of companies in our industry without
regard to such items, which can vary substantially from company to
company. Accordingly, EBITDA should not be considered as an
alternative to net income as an indicator of our financial
performance. EBITDA may not be comparable to similarly titled
measures of other companies. Therefore, we use EBITDA as one measure
of our operating performance when we formulate corporate goals,
evaluate the effectiveness of our strategies, and determine executive
compensation.  


 
                                                                            
                              W. P. CAREY INC.                              
                                                                            
Reconciliation of Net Income to Funds From Operations -- as adjusted (AFFO) 
                                 (Unaudited)                                
             (in thousands, except share and per share amounts)             
                                                                            
                            Three Months Ended         Nine Months Ended    
                               September 30,             September 30,      
                         ------------------------  ------------------------ 
                             2012         2011         2012         2011    
                         -----------  -----------  -----------  ----------- 
Investment Management                                                       
Net Income from                                                             
 investment management                                                      
 attributable to W. P.                                                      
 Carey stockholders (a)  $       661  $     9,112  $     7,266  $    49,075 
                         -----------  -----------  -----------  ----------- 
FFO - as defined by                                                         
 NAREIT                          661        9,112        7,266       49,075 
                         -----------  -----------  -----------  ----------- 
  Adjustments:                                                              
    Amortization and                                                        
     other non-cash                                                         
     charges                     247       (1,263)         735        3,021 
    Stock based                                                             
     compensation              9,461        4,340       18,813       12,869 
    Deferred tax expense     (15,207)       1,876      (21,430)      14,119 
    Realized losses                                                         
     (gains) on foreign                                                     
     currency,                                                              
     derivatives and                                                        
     other                        17            -           (6)           - 
    Amortization of                                                         
     deferred financing                                                     
     costs                       308            -          879            - 
                         -----------  -----------  -----------  ----------- 
      Total adjustments       (5,174)       4,953       (1,009)      30,009 
                         -----------  -----------  -----------  ----------- 
AFFO - Investment                                                           
 Management              $    (4,513) $    14,065  $     6,257  $    79,084 
                         ===========  ===========  ===========  =========== 
                                                                            
Real Estate Ownership                                                       
Net Income from real                                                        
 estate ownership                                                           
 attributable to W. P.                                                      
 Carey stockholders (a)  $     1,927  $    16,090  $    39,388  $    80,913 
  Adjustments:                                                              
    Depreciation and                                                        
     amortization of                                                        
     real property             5,510        6,194       17,330       16,909 
    Impairment charges         5,534        4,934       12,262        4,975 
    (Gain) loss on sale                                                     
     of real estate, net         (59)         396       (1,564)        (264)
    Proportionate share                                                     
     of adjustments to                                                      
     equity in net                                                          
     income of partially                                                    
     owned entities to                                                      
     arrive at FFO:                                                         
      Depreciation and                                                      
       amortization of                                                      
       real property             707        1,173        2,335        4,049 
      Impairment charges           -            -            -        1,090 
      Loss (gain) on                                                        
       sale of real                                                         
       estate, net               181            -      (15,234)          34 
    Proportionate share                                                     
     of adjustments for                                                     
     noncontrolling                                                         
     interests to arrive                                                    
     at FFO                     (400)      (1,157)      (1,268)      (1,477)
                         -----------  -----------  -----------  ----------- 
  
    Total adjustments       11,473       11,540       13,861       25,316 
                         -----------  -----------  -----------  ----------- 
FFO - as defined by                                                         
 NAREIT                       13,400       27,630       53,249      106,229 
                         -----------  -----------  -----------  ----------- 
  Adjustments:                                                              
    Gain on change in                                                       
     control of                                                             
     interests (b) (c)       (20,794)           -      (20,794)     (27,859)
    Gain on                                                                 
     deconsolidation of                                                     
     a subsidiary                  -       (1,008)           -       (1,008)
    Other losses, net              -          135            -            - 
    Other depreciation,                                                     
     amortization and                                                       
     non-cash charges           (130)       2,717         (106)         (53)
    Stock based                                                             
     compensation                344           53          747          157 
    Deferred tax expense        (917)      (2,602)      (2,101)      (2,602)
    Realized losses on                                                      
     foreign currency,                                                      
     derivatives and                                                        
     other                       115            -          657            - 
    Amortization of                                                         
     deferred financing                                                     
     costs                       509            -        1,375            - 
    Straight-line and                                                       
     other rent                                                             
     adjustments                (200)      (1,014)      (2,198)      (2,451)
    Above-market rent                                                       
     intangible lease                                                       
     amortization, net            51            -          162            - 
    Merger expenses           35,570            -       40,289            - 
    Proportionate share                                                     
     of adjustments to                                                      
     equity in net                                                          
     income of partially                                                    
     owned entities to                                                      
     arrive at AFFO:                                                        
      Other                                                                 
       depreciation,                                                        
       amortization and                                                     
       non-cash charges                                                     
      Straight-line and                                                     
       other rent                                                           
       adjustments               (25)        (463)        (801)      (1,227)
      Below-market rent                                                     
       intangible lease                                                     
       amortization, net           -            -           (3)           - 
      AFFO adjustments                                                      
       to equity                                                            
       earnings from                                                        
       equity                                                               
       investments            10,650        1,978       25,263        3,155 
    Proportionate share                                                     
     of adjustments for                                                     
     noncontrolling                                                         
     interests to arrive                                                    
     at AFFO                    (141)          59         (186)         218 
                         -----------  -----------  -----------  ----------- 
      Total adjustments       25,032         (145)      42,304      (31,670)
                         -----------  -----------  -----------  ----------- 
AFFO - Real Estate                                                          
 Ownership               $    38,432  $    27,485  $    95,553  $    74,559 
                         ===========  ===========  ===========  =========== 
                                                                            
Total Company                                                               
FFO - as defined by                                                         
 NAREIT                  $    14,061  $    36,742  $    60,515  $   155,304 
                         ===========  ===========  ===========  =========== 
FFO - as defined by                                                         
 NAREIT per share                                                           
 (diluted)               $      0.34  $      0.91  $      1.47  $      3.84 
                         ===========  ===========  ===========  =========== 
AFFO                     $    33,919  $    41,550  $   101,810  $   153,643 
                         ===========  ===========  ===========  =========== 
AFFO per share (diluted) $      0.82  $      1.03  $      2.48  $      3.80 
                         ===========  ===========  ===========  =========== 
Diluted weighted average                                                    
 shares outstanding       41,127,404   40,404,520   41,029,578   40,424,316 
                         ===========  ===========  ===========  =========== 

 
__________ 


 
(a)  Effective April 1, 2012, we include cash distributions and deferred    
     revenue received and earned from the operating partnerships of CPA(R):16 
     - Global, CPA(R):17 - Global and CWI in our Real Estate Ownership        
     segment. Results of operations for the prior year periods have been    
     reclassified to conform to the current period presentation.            
     Additionally, during the third quarter of 2011, CPA(R):16 - Global       
     finalized its assessment of the fair values of the assets acquired and 
     liabilities assumed in connection with the CPA(R):14/16 merger and made  
     certain adjustments during that quarter. Our proportionate share of the
     adjustments before income taxes was approximately $2.6 million. In     
     accordance with current accounting guidance, we have retrospectively   
     adjusted our results of operations in our Real Estate Ownership segment
     for the three and nine months ended September 30, 2011 to include such 
     adjustments.                                                           
(b)  Gain on change in control of interests for the nine months ended       
     September 30, 2011 represents gain recognized on purchase of the       
     remaining interests in two investments from CPA(R):14, which we had      
     previously accounted for under the equity method. In connection with   
     purchasing these properties, we recognized a net gain of $27.9 million 
     during the nine months ended September 30, 2011 to adjust the carrying 
     value of our existing interests in these investments to their estimated
     fair values.                                                           
(c)  Gain on change in control of interests fo
r the three and nine months   
     ended September 30, 2012 represents a gain of $14.7 million recognized 
     on our previously held interest in shares of CPA(R):15 common stock, and 
     a gain of $6.1 million recognized on the purchase of the remaining     
     interests in five investments from CPA(R):15, which we had previously    
     accounted for under the equity method. We recognized a net gain of     
     $20.8 million to adjust the carrying value of our existing interests in
     these investments to their estimated fair values.                      

 
Non-GAAP Financial Disclosure 
FFO is a non-GAAP measure defined by NAREIT. NAREIT defines FFO as
net income or loss (as computed in accordance with GAAP) excluding:
depreciation and amortization expense from real estate assets,
impairment charges on real estate, gains or losses from sales of
depreciated real estate assets and extraordinary items; however, FFO
related to assets held for sale, sold or otherwise transferred and
included in the results of discontinued operations are included.
These adjustments also incorporate the pro rata share of
unconsolidated subsidiaries. FFO is used by management, investors and
analysts to facilitate meaningful comparisons of operating
performance between periods and among our peers. Although NAREIT has
published this definition of FFO, companies often modify this
definition as they seek to provide financial measures that
meaningfully reflect their distinctive operations. 
We modify the NAREIT computation of FFO to 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, gains or losses
from extinguishment of debt and deconsolidation of subsidiaries and
unrealized foreign currency exchange gains and losses. We refer to
our modified definition of FFO as AFFO. 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 have no impact on
cash flows, and we therefore use AFFO as one measure of our operating
performance when we formulate corporate goals, evaluate the
effectiveness of our strategies, and determine executive
compensation.  
We believe that AFFO is a useful supplemental measure for investors
to consider because it will help them to better assess the
sustainability of our operating performance without the potentially
distorting impact of these short-term fluctuations. However, there
are limits on the usefulness of AFFO to investors. For example,
impairment charges and unrealized foreign currency losses that we
exclude may become actual realized losses upon the ultimate
disposition of the properties in the form of lower cash proceeds or
other considerations. 


 
                                                                            
                              W. P. CAREY INC.                              
             Total Adjusted Revenue (Pro rata Basis) (Unaudited)            
                     (in thousands, except percentages)                     
                                                                            
                       Three Months Ended            Nine Months Ended      
                         September 30,                 September 30,        
                 ----------------------------- -----------------------------
                      2012         2011 (e)         2012         2011 (e)   
                 -------------- -------------- -------------- --------------
                  Revenue    %   Revenue    %   Revenue    %   Revenue    % 
                 --------- ---- --------- ---- --------- ---- --------- ----
Asset management                                                            
 revenue         $  15,850  20% $  14,840  16% $  47,088  21% $  51,279  21%
Structuring                                                                 
 revenue (a)         8,316  11%    21,221  24%    19,576   8%    42,901  18%
                 --------- ---- --------- ---- --------- ---- --------- ----
Investment                                                                  
 management                                                                 
 revenues           24,166  31%    36,061  40%    66,664  29%    94,180  39%
Real estate                                                                 
 revenues           54,154  69%    54,576  60%   166,801  71%   149,734  61%
                 --------- ---- --------- ---- --------- ---- --------- ----
Total Adjusted                                                              
 Revenue         $  78,320 100% $  90,637 100% $ 233,465 100% $ 243,914 100%
                 ========= ==== ========= ==== ========= ==== ========= ====
                                                                            
Reconciliation                                                              
 of Total                                                                   
 Adjusted                                                                   
 Revenue                                                                    
Total revenue -                                                             
 as reported     $  71,036      $  76,658      $ 207,996      $ 268,862     
Less: Reimbursed                                                            
 costs from                                                                 
 affiliates (b)   (19,879)       (14,707)       (59,100)       (49,485)     
Less:                                                                       
 Wholesaling                                                                
 revenue (b)       (4,012)        (2,586)       (11,878)        (8,788)     
Less: Incentive,                                                            
 termination and                                                            
 subordinated                                                               
 disposition                                                                
 revenue (c)             -              -              -       (52,515)     
Add: Lease                                                                  
 revenues -                                                                 
 discontinued                                                               
 operations             59            579          1,159          6,025     
Add: Pro rata                                                               
 share of                                                                   
 revenues from                                                              
 equity                                                                     
 investments         5,313          6,689         17,463         21,668     
Less: Pro rata                                                              
 share of                                                                   
 revenues due to                                                            
 noncontrolling                                                             
 interests           (411)          (452)        (1,261)        (2,193)     
Add: Pro rata                                                               
 share of                                                                   
 revenues from                                                              
 CPA(R) REITs         18,862         19,976         57,297         52,072     
Add: Total                                                                  
 distributions                                                              
 of available                                                               
 cash
 - CPA(R)                                                                
 REITs               7,352          4,480         21,789          8,268     
                 ---------      ---------      ---------      ---------     
Total Adjusted                                                              
 Revenue         $  78,320      $  90,637      $ 233,465      $ 243,914     
                 =========      =========      =========      =========     
                                                                            
Reconciliation                                                              
 of Real Estate                                                             
 Revenues                                                                   
Lease revenues -                                                            
 as reported     $  16,714      $  17,001      $  51,265      $  46,682     
Lease revenues -                                                            
 discontinued                                                               
 operations             59            579          1,159          6,025     
                 ---------      ---------      ---------      ---------     
Total                                                                       
 consolidated                                                               
 lease revenues     16,773         17,580         52,424         52,707     
Add: Pro rata                                                               
 share of                                                                   
 revenues from                                                              
 equity                                                                     
 investments         5,313          6,689         17,463         21,668     
Less: Pro rata                                                              
 share of                                                                   
 revenues due to                                                            
 noncontrolling                                                             
 interests           (411)          (452)        (1,261)        (2,193)     
                 ---------      ---------      ---------      ---------     
Total pro rata                                                              
 net lease                                                                  
 revenues           21,675         23,817         68,626         72,182     
                 ---------      ---------      ---------      ---------     
Add: Pro rata                                                               
 share of                                                                   
 revenues from                                                              
 CPA(R) REITs:                                                                
  CPA(R):14                -              -              -          4,484     
  CPA(R):15            4,234          4,652         12,731         13,178     
  CPA(R):16 -                                                                 
   Global           13,817         14,936         42,407         34,022     
  CPA(R):17 -                                                                 
   Global              811            388          2,159            388     
                 ---------      ---------      ---------      ---------     
  Total pro rata                                                            
   share of                                                                 
   revenues from                                                            
   CPA(R) REITs       18,862         19,976         57,297         52,072     
Add:                                                                        
 Distributions                                                              
 of available                                                               
 cash - CPA(R)                                                                
 REITs                                                                      
  CPA(R):16 -                                                                 
   Global            3,685          2,499         11,564          2,499     
  CPA(R):17 -                                                                 
   Global            3,667          1,981         10,225          5,769     
                 ---------      ---------      ---------      ---------     
  Total                                                                     
   distributions                                                            
   of available                                                             
   cash - CPA(R)                                                              
   REITs             7,352          4,480         21,789          8,268     
Add: Other real                                                             
 estate income                                                              
 (d)                 6,265          6,303         19,089         17,212     
                 ---------      ---------      ---------      ---------     
Total Real                                                                  
 Estate Revenues $  54,154      $  54,576      $ 166,801      $ 149,734     
                 =========      =========      =========      =========     

 
__________ 


 
(a)  We earn structuring revenue on acquisitions structured on behalf of the
     CPA(R) REITS and CWI that we manage and expect significant period-to-    
     period variation in such revenue based on changes in investment volume.
     Investments structured on behalf of the CPA(R) REITS and CWI totaled     
     approximately $198.3 million and $498.0 million for the three months   
     ended September 30, 2012 and 2011, respectively, and approximately     
     $468.3 million and $1.1 billion for the nine months ended September 30,
     2012 and 2011, respectively.                                           
(b)  Total adjusted revenue excludes reimbursements of costs received from  
     the affiliated CPA(R) REITs and CWI as they have no impact on net income.
     Also excluded is wholesaling revenue earned in connection with CPA(R):17 
     - Global's and CWI's public offerings, which is substantially offset by
     underwriting costs incurred in connection with the offerings.          
(c)  In connection with providing a liquidity event for CPA(R):14             
     shareholders, in May 2011, we earned termination revenue of $31.2      
     million and subordinated disposition revenue of $21.3 million, which we
     received in shares of CPA(R):14 and cash, respectively. These CPA(R):14    
     shares were subsequently converted to shares of CPA(R):16 - Global in    
     connection with the CPA(R):14/16 merger.                                 
(d)  Other real estate income generally consists of revenue from Carey      
     Storage Management LLC, a subsidiary that invests in domestic self-    
     storage properties and Livho, Inc., a subsidiary that operates a hotel 
     franchise. Other real estate income also includes lease termination    
     payments and other non-rent related revenues from real estate          
     ownership, and as a result, we expect Other real estate income to      
     fluctuate period to period.                                            
(e)  Amounts presented for prior year periods do not reflect adjustments to 
     prior period amounts for assets reclassified as held for sale or sold  
     in the current period and reflected as discontinued operations.        
                                                                            
                                                                            
                                                                            
                   
           W. P. CAREY INC.                              
      Selected Investment Management Fees and Distributions (Unaudited)     
                               (in thousands)                               
                                                                            
                                  Three Months Ended September 30, 2012     
                            ------------------------------------------------
                            Asset Management Revenue                        
                            ------------------------                        
                            Base Asset               Distributions          
                            Management  Performance   of Available          
                              Revenue     Revenue         Cash       Total  
                            ---------- ------------- ------------- ---------
CPA(R):15                     $    3,063 $       3,063 $           - $   6,126
CPA(R):16 - Global                 4,631             -         3,685     8,316
CPA(R):17 - Global                 4,906             -         3,667     8,573
CWI/Other                          187             -             -       187
                            ---------- ------------- ------------- ---------
Total                       $   12,787 $       3,063 $       7,352 $  23,202
                            ========== ============= ============= =========
                                                                            
                                  Three Months Ended September 30, 2011     
                            ------------------------------------------------
                            Asset Management Revenue                        
                            ------------------------                        
                            Base Asset               Distributions          
                            Management  Performance   of Available          
                              Revenue     Revenue         Cash       Total  
                            ---------- ------------- ------------- ---------
Total                       $   11,581 $       3,259 $       4,480 $  19,320
                            ========== ============= ============= =========
                                                                            
 
                              W. P. CAREY INC.                              
      Selected Investment Management Fees and Distributions (Unaudited)     
                               (in thousands)                               
                                                                            
                                  Nine Months Ended September 30, 2012      
                            ------------------------------------------------
                            Asset Management Revenue                        
                            ------------------------                        
                            Base Asset               Distributions          
                            Management  Performance   of Available          
                              Revenue     Revenue         Cash       Total  
                            ---------- ------------- ------------- ---------
CPA(R):15                     $    9,272 $       9,272 $           - $  18,544
CPA(R):16 - Global                13,929             -        11,564    25,493
CPA(R):17 - Global                14,224             -        10,225    24,449
CWI/Other                          391             -             -       391
                            ---------- ------------- ------------- ---------
Total                       $   37,816 $       9,272 $      21,789 $  68,877
                            ========== ============= ============= =========
                                                                            
                                  Nine Months Ended September 30, 2011      
                            ------------------------------------------------
                            Asset Management Revenue                        
                            ------------------------                        
                            Base Asset               Distributions          
                            Management  Performance   of Available          
                              Revenue     Revenue         Cash       Total  
                            ---------- ------------- ------------- ---------
Total                       $   34,459 $      16,820 $       8,268 $  59,547
                            ========== ============= ============= =========

  
COMPANY CONTACT:
Cheryl Sanclemente
W. P. Carey Inc. 
212-492-8995
csanclemente@wpcarey.com 
PRESS CONTACT:
Guy Lawrence
Ross & Lawrence
212-308-3333
gblawrence@rosslawpr.com 
 
 
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