WEBCAST • WPC Fourth Quarter and Full Year Financial Results
NEW YORK, NY, March 1, 2005 – Investment firm W. P. Carey & Co. LLC (NYSE: WPC) today reported financial results for the three and twelve-month periods ended December 31, 2004.
FULL YEAR RESULTS
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Net Income for the twelve-month period was $63.9 million, as compared to $62.9 million for the same period in 2003. The positive effect of earning $42.1 million in incentive and subordinated disposition fees in connection with the liquidation of the Company’s affiliated real estate investment trust (REIT), Carey Institutional Properties (CIP®), was more than offset by a $17.7 million increase in impairment charges, an increase of $33.9 million in income tax expense and a $7.3 million increase in general and administrative expenses. Diluted earnings per share (EPS) for the twelve-month period was $1.64, as compared to $1.65 for the same period in 2003.
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Funds from Operations (FFO), excluding the effect of asset impairment charges, increased for the twelve-month period to $3.47 per diluted share, or $135.1 million, up from $2.78 per diluted share, or $105.5 million for 2003. If impairment charges were reflected, FFO per diluted share for 2004 would be $2.91 as compared to $2.67 during the same period in 2003.
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Total revenues for the twelve-month period were $227.8 million up from $159.2 million for the same period in 2003. This increase was due in large part to an $18.3 million increase in management income from affiliates, $42.1 million in incentive and subordinated disposition fees and a $4.4 million increase in revenue of other business operations.
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Cash Flows from Operating Activities for the twelve-month period increased to $98.8 million, up from $67.3 million during the same period in 2003.
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In 2004, the Company, on behalf of its CPA® series of REITs, completed $890 million in investments, as compared to $725 million in 2003. In addition, W. P. Carey acquired interests in 17 properties from CIP® for approximately $142 million, which included the assumption of approximately $28 million of debt. These properties, totaling 2.4 million square feet, consist of office, industrial, retail and warehouse facilities located in nine states.
QUARTERLY RESULTS
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Net Income for the three-month period was $2.1 million, as compared to $18.6 million for the same period in 2003. Net Income for the three-month period was lower due to a decline in the Company’s quarterly investment activity, an $8.2 million increase in income tax expense, $6.7 million in asset impairment charges and an increase of $2.6 million in general and administrative expenses. Diluted EPS for the three-month period were $0.05, as compared to $0.48 for the same period in 2003.
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For the three-month period, FFO, excluding the effect of asset impairment charges, was $0.53 per diluted share, or $20.7 million, as compared to $0.71 per diluted share, or $27.5 million, for the comparable period in 2003. FFO was lower primarily due to a decline in the Company’s quarterly investment activity, an increase in income tax expense and an increase in general and administrative expenses as outlined above. If impairment charges were reflected, FFO per diluted share would be $0.36 as compared to $0.67 during the same period in 2003.
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Total revenues for the three-month period were $37.7 million, up from $35.8 million for the same period a year ago. This increase was due in large part to an increase of $2.4 million in rental income, following the Company’s acquisition of 17 properties from CIP®, as well as a $1.1 million increase in revenue of other business operations.
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W. P. Carey, on behalf of its CPA® series of REITs, completed $54.7 million in investments during the fourth quarter, as compared to $182.3 million during the same period in 2003.
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The Board of Directors raised the cash dividend to $.442 per common share, which was paid on January 15, 2005 to shareholders of record on December 31, 2004.
Gordon F. DuGan, President of W. P. Carey & Co. LLC, said, “In 2005 we will continue to focus our efforts on generating income for our investors and providing tailored financing solutions to our clients. We thank our investors for their support and confidence and will continue to work hard on their behalf.”
Conference Call & Webcast
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Time: Tuesday, March 1, 11:00 AM ET
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Founded in 1973, W. P. Carey & Co. LLC is a global investment firm concerned with assisting corporations with various forms of long-term financing. The Company also provides asset management services to the Corporate Property Associates (CPA®) series of income generating, publicly held non-traded real estate investment trusts (REITs). The W. P. Carey Group, with $3.5 billion in equity capital, is one of the leading providers of net lease financing for corporate properties worldwide. The Group owns more than 700 commercial and industrial properties worldwide, representing more than 90 million square feet, valued at approximately $7 billion.
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 commercial properties; interest rate levels; the availability of financing; and other risks associated with the acquisition and ownership of properties, including risks that the tenants will not pay rent, or that costs may be greater than anticipated. For further information on factors that could impact the company, reference is made to the company’s filings with the Securities and Exchange Commission.
