8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 1, 2007

W. P. Carey & Co. LLC

(Exact name of registrant as specified in its charter)

Delaware
(State or other jurisdiction of incorporation) 001-13779
(Commission File Number) 13-3912578
(I.R.S. Employer Identification No.)

50 Rockefeller Plaza
New York, New York
(Address of principal executive offices)  
10020
(Zip code)

(212) 492-1100
(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

	ITEM 2.02 Results of Operations and Financial Condition.
	ITEM 9.01 Financial Statements and Exhibits.
SIGNATURES
EX-99.1: EARNINGS RELEASE

ITEM 2.02 Results of Operations and Financial Condition.

On August 1, 2007, the registrant issued an earnings release announcing its financial results for the quarter ended June 30, 2007. A copy of the earnings release is attached as Exhibit 99.1.

ITEM 9.01 Financial Statements and Exhibits.

Exhibit 99.1 Earnings release of the registrant for the quarter ended June 30, 2007.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

	W. P. Carey & Co. LLC
Date: August 1, 2007	By:	/s/ Mark J. DeCesaris
		Mark J. DeCesaris
		Managing Director and acting Chief Financial Officer

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

COMPANY CONTACT:	PRESS CONTACT:
Kristina McMenamin	Guy Lawrence
W. P. Carey & Co. LLC	Ross & Lawrence
212-492-8995	212-308-3333
kmcmenamin@wpcarey.com	gblawrence@rosslawpr.com

W. P. Carey Announces Second Quarter Financial Results

New York, NY — August 1, 2007 — Investment firm W. P. Carey & Co. LLC (NYSE: WPC) today reported financial results for the second quarter and six-month period ended June 30, 2007. Revenues, net income and funds from operations (FFO) for the second quarter were significantly higher than the same quarter in 2006 and all were positively impacted by a substantial increase in investment volume and CPA^®:16 — Global meeting its performance hurdle in June.

Assets under management at the end of the second quarter were valued at $8 billion — an increase of approximately $1.4 billion or 20% from the second quarter of 2006. Since 2001, the Company’s assets under management have had an annual compound growth rate of 25%. Contributing to this growth was investment volume, which reached a six-month record of $660 million through June 2007. Total investment volume for the full year 2006 was $720 million.

In connection with CPA^®:16 — Global meeting its performance hurdle, the Company recognized $45.9 million in previously deferred revenues. Net income for the second quarter was also positively affected by $21.6 million with the achievement of the hurdle.

QUARTERLY AND SIX-MONTH RESULTS

• Total revenues net of reimbursed expenses for the second quarter of 2007 were $106.9 million, compared to 2006’s second quarter revenues of $37.6 million. Total revenues net of reimbursed expenses for the six-month period were $149.3 million, compared to $82.4 million for 2006. Reimbursed expenses are excluded from total revenues because they have no impact on net income.

• Net income for the second quarter of 2007 increased to $42 million, as compared to $17.3 million for the same period in 2006. Net income for the six-month period increased 86% to $52.8 million, as compared to $28.4 million in 2006.

• Diluted earnings per share (EPS) for the second quarter of 2007 were $1.10 as compared to $0.44 for the same period in 2006. Diluted EPS for the six-month period increased 88% to $1.37 as compared to $0.73 for the same period in 2006.

• FFO for the second quarter of 2007 was $1.99 per diluted share, or $79.6 million, as compared to $0.73 per diluted share, or $28.6 million, for the comparable period in 2006. FFO for the six-month period increased 95% to $98.1 million, or

	$2.46 per diluted share, as compared to $50.4 million, or $1.30 per diluted share, for the comparable period in 2006.
•	Cash flows from operating activities for the six-month period decreased to $11.6 million, as compared to $35.6 million for the comparable period in 2006 as a result of payment in 2007 of taxes totaling $21 million on revenue earned in the fourth quarter of 2006 in connection with the CPA®:12/CPA®:14 merger.

SUPPLEMENTAL PERFORMANCE METRICS

• Earnings before interest, taxes, depreciation and amortization (EBITDA) from our investment management segment totaled $63.5 million this quarter, an increase over EBITDA of $10.8 million in the second quarter of 2006. Year-to-date, EBITDA increased 183% to $75.1 million from $26.6 million.

• FFO from our real estate ownership segment in the second quarter of 2007 decreased to $17 million from $18 million. Year-to-date, FFO from this segment increased 3% to $31.7 million from $30.7 million.

• For the six-month period ended June 30, 2007, adjusted cash flow from operations totaled $54.9 million, as compared to $46.2 million for the previous year.

• Further information concerning these non-GAAP supplemental performance metrics is presented in the accompanying tables.

DISTRIBUTIONS AND SHARE REPURCHASE

• The Board of Directors raised the quarterly cash distribution to $0.467 per share — our 25^th consecutive dividend increase — which was paid on July 16, 2007 to shareholders on record as of June 29, 2007.

• In addition, our Board approved a share repurchase program authorizing the repurchase of up to $20 million of our outstanding shares in the open market through December 31, 2007.

INVESTMENT ACTIVITY

• In the second quarter of 2007, we structured investments totaling approximately $493 million on behalf of our CPA^® series of funds. Substantially all of these investments were international transactions.

• Our investment volume reached a record $660 million through the end of June, almost doubling the previous year’s six-month total of $338 million.

“We are very pleased with our strong second quarter and year-to-date results,” said President and Chief Executive Officer, Gordon F. DuGan. “These results show how the growth of our investment management business can result in strong bottom-line results. Our investment volume has been very strong for the first six months of this year and we continue to have a sound pipeline of investment opportunities. Additionally, we think that a tightening of the credit markets could potentially create a more attractive investment environment as our sale-leaseback business competes with other forms of

capital for our corporate clients. As we move forward to the second half of 2007, we do so with a very strong balance sheet and in a terrific financial position.”

UPCOMING EVENTS

• Benjamin P. Harris, Head of Domestic Investments, will be speaking at The Deal’s 2007 Innovative Deal Financing Conference on Tuesday, September 25, 2007 at the Harvard Club in New York City.

CONFERENCE CALL & WEBCAST

Please call at least 10 minutes prior to call to register

Time: Wednesday, August 1, 2007 at 11:00 AM (ET)

Call-in Number: 1-877-407-8031
(International) +1-201-689-8031

Webcast: www.wpcarey.com/earnings

Podcast: www.wpcarey.com/podcast
Available after 2:00 PM (ET)

Replay Number: 1-877-660-6853
(International) +1-201-612-7415

Replay Access Codes: Account # 286 and Conference ID # 248308. Please note that both access codes are required for playback. Replay available until August 15, 2007 at midnight ET.

W. P. Carey & Co. LLC
Founded in 1973, W. P. Carey & Co. LLC is a leading global provider of long-term net lease financing for companies worldwide. With over $9.7 billion in assets and $5 billion in equity capital, the Company and its CPA^® series of income generating real estate funds specialize in helping companies and private equity firms realize the capital tied up in their real estate assets. The W. P. Carey Group owns more than 850 commercial and industrial properties in 14 countries, representing approximately 100 million square feet. 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
50 Rockefeller Plaza
New York, NY 10020
www.wpcarey.com

W. P. CAREY & CO. LLC

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(in thousands, except share and per share amounts)

	Three months ended June 30,						Six months ended June 30,
	2007			2006			2007			2006
Revenues
Asset management revenue	$	30,204		$	14,752		$	45,238		$	29,114
Structuring revenue		53,448			2,462			58,031			12,354
Reimbursed costs from affiliates		3,244			19,894			6,719			22,892
Lease revenues		19,998			18,285			39,630			36,412
Other real estate income		3,241			2,149			6,415			4,532
		110,135			57,542			156,033			105,304
Operating Expenses
General and administrative		(23,256	)		(9,871	)		(35,493	)		(21,029	)
Reimbursable costs		(3,244	)		(19,894	)		(6,719	)		(22,892	)
Depreciation and amortization		(6,950	)		(6,007	)		(13,894	)		(11,977	)
Property expenses		(1,893	)		(1,345	)		(3,313	)		(3,013	)
Other real estate expenses		(1,301	)		(1,466	)		(3,825	)		(3,033	)
		(36,644	)		(38,583	)		(63,244	)		(61,944	)
Other Income and Expenses
Other interest income		3,643			811			4,241			1,538
Income from equity investments in real estate		1,929			1,244			4,367			2,794
Minority interest in (income) loss		(3,141	)		254			(3,472	)		(608	)
Gain on sale of securities, foreign currency transactions and other gains, net		169			5,228			355			5,478
Interest expense		(5,669	)		(4,541	)		(10,532	)		(8,929	)
		(3,069	)		2,996			(5,041	)		273
Income from continuing operations before income taxes		70,422			21,955			87,748			43,633
Provision for income taxes		(31,144	)		(3,998	)		(37,522	)		(10,720	)
Income from continuing operations		39,278			17,957			50,226			32,913
Discontinued Operations
Income (loss) from operations of discontinued properties		1,790			(653	)		1,642			(1,187	)
Gain on sale of real estate, net		962			—			962			—
Impairment charges on assets held for sale		—			—			—			(3,357	)
Income (loss) from discontinued operations		2,752			(653	)		2,604			(4,544	)
Net Income	$	42,030		$	17,304		$	52,830		$	28,369
Basic Earnings (Loss) Per Share
Income from continuing operations	$	1.03		$	0.48		$	1.32		$	0.87
Income (loss) from discontinued operations		0.07			(0.02	)		0.07			(0.12	)
Net income	$	1.10		$	0.46		$	1.39		$	0.75
Diluted Earnings (Loss) Per Share
Income from continuing operations	$	1.03		$	0.46		$	1.30		$	0.85
Income (loss) from discontinued operations		0.07			(0.02	)		0.07			(0.12	)
Net income	$	1.10		$	0.44		$	1.37		$	0.73
Weighted Average Shares Outstanding
Basic		38,308,202			37,876,079			38,120,532			37,802,340
Diluted		40,004,379			39,346,537			39,894,412			38,794,914
Distributions Declared Per Share	$	0.467		$	0.454		$	0.929		$	0.906

W. P. CAREY & CO. LLC

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)

	Six months ended June 30,
	2007			2006
Cash Flows — Operating Activities
Net income	$	52,830		$	28,369
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization including intangible assets and deferred financing costs		14,509			12,625
Income from equity investments in real estate in excess of distributions received		(1,628	)		(202	)
Gains on sale of real estate and investments, net		(962	)		(4,800	)
Minority interest in income		3,472			608
Straight-line rent adjustments		1,421			1,612
Management income received in shares of affiliates		(31,728	)		(15,816	)
Unrealized gain on foreign currency transactions, warrants and securities		(313	)		(577	)
Impairment charges		—			3,357
Increase in income taxes, net		2,802			7
Realized gain on foreign currency transactions		(42	)		(101	)
Stock-based compensation expense		2,328			1,639
Decrease in deferred acquisition revenue receivable		16,164			12,543
Increase in structuring revenue receivable		(44,956	)		(3,039	)
Net changes in other operating assets and liabilities		(2,249	)		(660	)
Net cash provided by operating activities		11,648			35,565
Cash Flows — Investing Activities
Distributions received from equity investments in real estate in excess of equity income		21,716			3,106
Purchases of real estate and equity investments in real estate		(40,381	)		—
Capital expenditures		(7,361	)		(4,024	)
Loan to affiliate		—			(84,000	)
Proceeds from repayment of loan to affiliate		—			84,000
Proceeds from sales of property and investments		6,014			22,471
Funds placed in escrow in connection with the sale of property		(3,340	)		(9,163	)
Payment of deferred acquisition revenue to affiliate		(524	)		(524	)
Net cash (used in) provided by investing activities		(23,876	)		11,866
Cash Flows — Financing Activities
Distributions paid		(35,202	)		(34,356	)
Contributions from minority interests		688			1,161
Distributions to minority interests		(942	)		(5,075	)
Scheduled payments of mortgage principal		(7,719	)		(5,705	)
Proceeds from mortgages and credit facilities		118,617			55,000
Prepayments of mortgage principal and credit facilities		(68,257	)		(62,971	)
Release of funds from escrow in connection with the financing of properties		—			4,031
Payment of financing costs		(1,303	)		(472	)
Proceeds from issuance of shares		3,917			3,652
Excess tax benefits associated with stock-based compensation awards		1,335			271
Repurchase and retirement of shares		(2,038	)		(482	)
Net cash provided by (used in) financing activities		9,096			(44,946	)
Change in Cash and Cash Equivalents During the Period
Effect of exchange rate changes on cash		74			94
Net (decrease) increase in cash and cash equivalents		(3,058	)		2,579
Cash and cash equivalents, beginning of period		22,108			13,014
Cash and cash equivalents, end of period	$	19,050		$	15,593

W. P. CAREY & CO. LLC

Financial Highlights (Unaudited)
(in thousands, except share and per share data)

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 operations. A description of these non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures is provided on the following pages.

	For the Three Months Ended				For the Six Months Ended
	June 30, 2007		June 30, 2006		June 30, 2007			June 30, 2006
Operations
EBITDA — investment management	$	63,517	$	10,843	$	75,090		$	26,559
EBITDA — real estate ownership		22,318		21,068		39,756			33,675
EBITDA Total	$	85,835	$	31,911	$	114,846		$	60,234
FFO — investment management	$	62,561	$	10,553	$	66,410		$	19,688
FFO — real estate ownership		17,004		18,002		31,721			30,693
FFO Total	$	79,565	$	28,555	$	98,131		$	50,381
Per Share
EBITDA per share (diluted) — investment management	$	1.59	$	0.28	$	1.88		$	0.68
EBITDA per share (diluted) — real estate ownership		0.56		0.53		1.00			0.87
EBITDA per share (diluted) Total	$	2.15	$	0.81	$	2.88		$	1.55
FFO per share (diluted) — investment management	$	1.56	$	0.27	$	1.66		$	0.51
FFO per share (diluted) — real estate ownership		0.43		0.46		0.80			0.79
FFO per share (diluted) total	$	1.99	$	0.73	$	2.46		$	1.30
Adjusted Cash Flow From Operations
Adjusted cash flow					$	54,946		$	46,152
Adjusted cash flow per share (diluted)					$	1.38		$	1.19
Distributions paid					$	35,202		$	34,256
Payout ratio (distributions paid/adjusted cash flow)						64	%		74	%

W. P. CAREY & CO. LLC

Reconciliation of Net Income to EBITDA (Unaudited)
(in thousands, except share and per share amounts)

	For the Three Months Ended				For the Six Months Ended
Investment Management	June 30, 2007		June 30, 2006		June 30, 2007		June 30, 2006
Net income	$	32,100	$	5,482	$	36,489	$	13,211
Provision for income taxes		30,376		3,896		36,514		10,428
Depreciation and amortization		1,041		1,465		2,087		2,920
EBITDA — investment management	$	63,517	$	10,843	$	75,090	$	26,559
EBITDA per share (diluted)	$	1.59	$	0.28	$	1.88	$	0.68
Real Estate Ownership
Net income	$	9,930	$	11,822	$	16,341	$	15,158
Interest expense		5,669		4,541		10,532		8,929
Provision for income taxes		768		102		1,008		292
Depreciation and amortization		5,909		4,542		11,807		9,057
Reconciling items attributable to discontinued operations		42		61		68		239
EBITDA — real estate ownership	$	22,318	$	21,068	$	39,756	$	33,675
EBITDA per share (diluted)	$	0.56	$	0.53	$	1.00	$	0.87
Total Company
EBITDA	$	85,835	$	31,911	$	114,846	$	60,234
EBITDA per share (diluted)	$	2.15	$	0.81	$	2.88	$	1.55
Diluted weighted average shares outstanding		40,004,379		39,346,537		39,894,412		38,794,914

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)

	For the Three Months Ended						For the Six Months Ended
Investment Management	June 30, 2007			June 30, 2006			June 30, 2007			June 30, 2006
Net income	$	32,100		$	5,482		$	36,489		$	13,211
Amortization, deferred taxes and other non-cash charges		28,261			3,141			25,546			2,947
FFO from equity investments		2,200			1,930			4,375			3,530
FFO — investment management	$	62,561		$	10,553		$	66,410		$	19,688
FFO per share (diluted)	$	1.56		$	0.27		$	1.66		$	0.51
Real Estate Ownership
Net income	$	9,930		$	11,822		$	16,341		$	15,158
Gain on sale of real estate		(962	)		—			(962	)		—
Depreciation, amortization and other non-cash charges		5,653			4,250			11,115			8,569
Straight-line and other rent adjustments		623			866			1,456			1,557
Impairment charges		—			—			—			3,357
FFO from equity investments		1,972			1,245			4,186			2,470
Minority investees share of FFO		(212	)		(181	)		(415	)		(418	)
FFO — real estate ownership	$	17,004		$	18,002		$	31,721		$	30,693
FFO per share (diluted)	$	0.43		$	0.46		$	0.80		$	0.79
Total Company
Funds from operations (FFO)	$	79,565		$	28,555		$	98,131		$	50,381
FFO per share (diluted)	$	1.99		$	0.73		$	2.46		$	1.30
Diluted weighted average shares outstanding		40,004,379			39,346,537			39,894,412			38,794,914

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.

W. P. CAREY & CO. LLC

Adjusted Cash Flow from Operating Activities (Unaudited)
(in thousands)

	For the Six Months Ended
	June 30, 2007			June 30, 2006
Cash flow from operating activities — as reported	$	11,648		$	35,565
Adjustments:
CPA®:16 — Global performance adjustment, net (1)		17,763			7,808
CPA®:12/14 Merger — payment of taxes (2)		20,708			—
Deferred income tax adjustment (1)		(2,857	)		(987	)
Distributions received from equity investments in real estate in excess of equity income (3)		5,435			3,106
Changes in working capital (3)		2,249			660
Adjusted cash flow from operating activities	$	54,946		$	46,152
Distributions paid	$	35,202		$	34,256
Payout ratio (distributions paid/adjusted cash flow)		64	%		74	%

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.

(1)	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 that 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 as this revenue was actually earned over a three year period.
(2)	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 our core operations generate. We adjust our GAAP cash flow from operations to record such amounts in the period in which the liability was actually incurred. We believe that this is a fairer measure of determining our cash flow from core operations.
(3)	We take a substantial portion of our asset management revenue in shares of the CPA® REIT funds. To the extent that 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.