EX-99.1 2 c07659exv99w1.htm EXHIBIT 99.1 Exhibit 99.1
EXHIBIT 99.1
(W. P. CAREY LOGO)
W. P. Carey & Co. LLC
Supplemental Operating and Financial Data
As of September 30, 2010
(WPC LOGO)

 

 


 

Important Disclosures About this Supplemental Package
As used in this supplemental package, the terms “the Company,” “we,” “us” and “our” include W. P. Carey & Co. LLC, its consolidated subsidiaries and predecessors, unless otherwise indicated.
Important Note Regarding Non-GAAP Financial Measures
This supplemental package includes non-GAAP financial measures, including earnings before interest, taxes, depreciation and amortization (“EBITDA”), funds from operations — as adjusted (“AFFO”), adjusted cash flow from operating activities and revenue stability analysis. A description of these non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures are provided in this supplemental package.
Forward-Looking Statements
This supplemental package contains forward-looking statements within the meaning of the Federal securities laws. It is important to note that our actual results could be materially different from those projected in such forward-looking statements. You should exercise caution in relying on forward-looking statements as they involve known and unknown risks, uncertainties and other factors that may materially affect our future results, performance, achievements or transactions. Information on factors which could impact actual results and forward-looking statements contained herein is included in our filings with the SEC, including but not limited to our Annual Report on Form 10-K for the year ended December 31, 2009. We do not undertake to revise or update any forward-looking statements.

 

2


 

W. P. CAREY & CO. LLC
Supplemental Operating and Financial Data
As of September 30, 2010
         
Contents        
Company Overview
    4  
Financial Highlights
    5  
Reconciliation of Net Income to EBITDA
    6  
Reconciliation of Net Income to Funds From Operations — as adjusted (AFFO)
    7  
Adjusted Cash Flow from Operating Activities
    8  
Revenue Stability Analysis
    9  
Portfolio Debt Overview
    10  
Detailed Debt Summary
    11  
2010 Investment Activity
    13  
Portfolio Analysis — Rent Contribution and Historical Occupancy
    15  
Portfolio Diversification Analysis by Property Type
    16  
Portfolio Diversification Analysis by Tenant Industry
    17  
Portfolio Diversification Analysis by Geography
    18  
Portfolio Lease Maturity Analysis
    19  
Consolidated Balance Sheets
    20  
Consolidated Statements of Income
    21  
Consolidated Statements of Cash Flows
    22  
Detailed Property Summary
    23  

 

3


 

W. P. CAREY & CO. LLC
Company Overview
September 30, 2010
         
Key Company Contacts
      Executive Offices
Wm. Polk Carey
  Chairman of the Board and Director   50 Rockefeller Plaza
Trevor P. Bond
  President, Chief Executive Officer and Director   New York, NY 10020
Thomas E. Zacharias
  Managing Director, Chief Operating Officer   Tel: 1-800-WPCAREY or (212) 492-1100
Mark J. DeCesaris
  Managing Director, Chief Financial Officer   Fax: (212) 492-8922
Susan C. Hyde
  Managing Director, Director of Investor Relations   Web Site Address: www.wpcarey.com
 
       
Banks
       
Bank of America, N.A.
  Administrative and Documentation Agent    
The Bank of New York
  Syndication Agent    
JPMorgan Chase Bank, N.A.
  Syndication Agent    
PNC Bank, N.A.
  Syndication Agent    
 
       
Analyst Coverage
       
David M. West
  Davenport & Company, LLC    
Andrew T. DiZio
  Janney Montgomery Scott LLC    
                                         
    Third Quarter     Second Quarter     First Quarter     Fourth Quarter     Third Quarter  
Stock Data (NYSE: WPC)   2010     2010     2010     2009     2009  
High Price
  $ 30.86     $ 31.00     $ 30.32     $ 29.80     $ 30.67  
Low Price
  $ 26.49     $ 26.61     $ 24.69     $ 25.50     $ 22.50  
Closing Price
  $ 28.95     $ 27.64     $ 29.38     $ 27.68     $ 28.31  
 
                                       
Distributions declared per share — annualized (1)
  $ 2.03     $ 2.02     $ 2.02     $ 2.01     $ 2.00  
 
                                       
Distribution yield (annualized distribution / closing stock price)
    7.01 %     7.31 %     6.86 %     7.25 %     7.06 %
 
                                       
Shares outstanding at quarter end
    39,481,027       39,323,929       39,220,182       39,204,605       39,193,174  
 
                                       
Market value of outstanding shares at quarter end (in thousands)
  $ 1,142,976     $ 1,086,913     $ 1,152,289     $ 1,085,183     $ 1,109,559  
     
(1)   Annualized distribution declared per share for the fourth quarter of 2009 excludes a special distribution of $0.30 per share paid in January 2010 to shareholders of record at December 31, 2009.

 

4


 

W. P. CAREY & CO. LLC
Financial Highlights

(in thousands, except per share amounts)
These financial highlights include non-GAAP financial measures, including earnings before interest, taxes, depreciation and amortization (“EBITDA”), funds from operations — as adjusted (“AFFO”) and adjusted cash flow from operating activities. A description of these non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures is provided on the following pages.
                                                         
                                            Nine months ended  
    Three months ended     September 30,  
    September 30, 2010     June 30, 2010     March 31, 2010     December 31, 2009     September 30, 2009     2010     2009  
EBITDA
                                                       
Investment management
  $ 12,139     $ 22,273     $ 14,899     $ 18,892     $ 11,789     $ 49,311     $ 35,287  
Real estate ownership
    17,994       17,637       13,813       20,883       17,412       49,444       56,791  
 
                                         
Total
  $ 30,133     $ 39,910     $ 28,712     $ 39,775     $ 29,201     $ 98,755     $ 92,078  
 
                                         
 
                                                       
AFFO
                                                       
Investment management
  $ 10,393     $ 22,670     $ 12,089     $ 16,802     $ 12,788     $ 45,152     $ 38,748  
Real estate ownership
    17,214       16,250       15,977       16,871       17,445       49,441       50,455  
 
                                         
Total
  $ 27,607     $ 38,920     $ 28,066     $ 33,673     $ 30,233     $ 94,593     $ 89,203  
 
                                         
 
                                                       
EBITDA Per Share (Diluted)
                                                       
Investment management
  $ 0.31     $ 0.56     $ 0.38     $ 0.47     $ 0.29     $ 1.24     $ 0.89  
Real estate ownership
    0.45       0.45       0.35       0.52       0.43       1.24       1.43  
 
                                         
Total
  $ 0.76     $ 1.01     $ 0.73     $ 0.99     $ 0.72     $ 2.48     $ 2.32  
 
                                         
 
                                                       
AFFO Per Share (Diluted)
                                                       
Investment management
  $ 0.26     $ 0.57     $ 0.31     $ 0.41     $ 0.32     $ 1.14     $ 0.97  
Real estate ownership
    0.43       0.41       0.40       0.42       0.43       1.24       1.27  
 
                                         
Total
  $ 0.69     $ 0.98     $ 0.71     $ 0.83     $ 0.75     $ 2.38     $ 2.24  
 
                                         
                 
    Nine months ended September 30,  
    2010     2009  
Adjusted Cash Flow From Operating Activities
               
Adjusted cash flow
  $ 64,933     $ 71,300  
 
           
Adjusted cash flow per share (diluted)
  $ 1.63     $ 1.79  
 
           
 
               
Distributions declared per share
  $ 1.518     $ 1.494  
 
           
Payout ratio (distributions per share/adjusted cash flow per share)
    93 %     83 %
 
           

 

5


 

W. P. CAREY & CO. LLC
Reconciliation of Net Income to EBITDA

(in thousands, except share and per share amounts)
                                                         
                                            Nine months ended  
    Three months ended     September 30,  
    September 30, 2010     June 30, 2010     March 31, 2010     December 31, 2009     September 30, 2009     2010     2009  
Investment Management
                                                       
Net income from investment management attributable to W. P. Carey members
  $ 7,730     $ 14,331     $ 9,850     $ 11,616     $ 5,059     $ 31,911     $ 17,718  
Adjustments:
                                                       
Provision for income taxes
    3,253       6,780       3,878       6,227       5,606       13,911       14,811  
Depreciation and amortization
    1,156       1,162       1,171       1,049       1,124       3,489       2,758  
 
                                         
EBITDA — investment management
  $ 12,139     $ 22,273     $ 14,899     $ 18,892     $ 11,789     $ 49,311     $ 35,287  
 
                                         
EBITDA per share (diluted)
  $ 0.31     $ 0.56     $ 0.38     $ 0.47     $ 0.29     $ 1.24     $ 0.89  
 
                                         
 
                                                       
Real Estate Ownership
                                                       
Net income from real estate ownership attributable to W. P. Carey members
  $ 8,616     $ 9,101     $ 4,563     $ 11,370     $ 8,292     $ 22,280     $ 28,319  
Adjustments:
                                                       
Interest expense
    4,298       3,765       3,711       3,589       3,786       11,774       11,245  
Provision for income taxes
    124       (29 )     234       628       412       329       1,127  
Depreciation and amortization
    4,911       4,653       5,198       4,227       4,314       14,569       14,037  
Reconciling items attributable to discontinued operations
    45       147       107       1,069       608       492       2,063  
 
                                         
EBITDA — real estate ownership
  $ 17,994     $ 17,637     $ 13,813     $ 20,883     $ 17,412     $ 49,444     $ 56,791  
 
                                         
EBITDA per share (diluted)
  $ 0.45     $ 0.45     $ 0.35     $ 0.52     $ 0.43     $ 1.24     $ 1.43  
 
                                         
 
                                                       
Total Company
                                                       
EBITDA
  $ 30,133     $ 39,910     $ 28,712     $ 39,775     $ 29,201     $ 98,755     $ 92,078  
 
                                         
EBITDA per share (diluted)
  $ 0.76     $ 1.01     $ 0.73     $ 0.99     $ 0.72     $ 2.48     $ 2.32  
 
                                         
Diluted weighted average shares outstanding
    39,717,931       39,510,231       39,495,845       40,390,393       40,368,946       39,774,122       39,770,196  
 
                                         
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.

 

6


 

W. P. CAREY & CO. LLC
Reconciliation of Net Income to Funds From Operations — as adjusted (AFFO)

(in thousands, except share and per share amounts)
                                                         
    Three months ended     Nine months ended September 30,  
    September 30, 2010     June 30, 2010     March 31, 2010     December 31, 2009     September 30, 2009     2010     2009  
Investment Management
                                                       
Net income from investment management attributable to W. P. Carey members
  $ 7,730     $ 14,331     $ 9,850     $ 11,616     $ 5,059     $ 31,911     $ 17,718  
 
                                                       
Amortization, deferred taxes and other non-cash charges
    657       3,095       1,278       (3,370 )     1,247       5,030       5,166  
AFFO from equity investments
    2,006       5,244       961       8,556       6,482       8,211       15,864  
 
                                         
AFFO — investment management
  $ 10,393     $ 22,670     $ 12,089     $ 16,802     $ 12,788     $ 45,152     $ 38,748  
 
                                         
AFFO per share (diluted)
  $ 0.26     $ 0.57     $ 0.31     $ 0.41     $ 0.32     $ 1.14     $ 0.97  
 
                                         
 
                                                       
Real Estate Ownership
                                                       
Net income from real estate ownership attributable to W. P. Carey members
  $ 8,616     $ 9,101     $ 4,563     $ 11,370     $ 8,292     $ 22,280     $ 28,319  
Gain on sale of real estate, net
          (56 )     (404 )     (7,358 )           (460 )     (343 )
Gain on extinguishment of debt, net (a)
                                        (2,796 )
Depreciation, amortization and other non-cash charges
    4,005       4,887       5,818       4,976       4,189       14,710       14,537  
Straight-line and other rent adjustments
    148       99       (80 )     465       396       167       808  
Impairment charges
    481       985       7,152       5,754       2,390       8,618       4,670  
AFFO from equity investments
    4,036       1,448       (904 )     1,818       2,274       4,580       5,687  
Noncontrolling interests’ share of AFFO
    (72 )     (214 )     (168 )     (154 )     (96 )     (454 )     (427 )
 
                                         
AFFO — real estate ownership
  $ 17,214     $ 16,250     $ 15,977     $ 16,871     $ 17,445     $ 49,441     $ 50,455  
 
                                         
AFFO per share (diluted)
  $ 0.43     $ 0.41     $ 0.40     $ 0.42     $ 0.43     $ 1.24     $ 1.27  
 
                                         
 
                                                       
Total Company
                                                       
AFFO
  $ 27,607     $ 38,920     $ 28,066     $ 33,673     $ 30,233     $ 94,593     $ 89,203  
 
                                         
AFFO per share (diluted)
  $ 0.69     $ 0.98     $ 0.71     $ 0.83     $ 0.75     $ 2.38     $ 2.24  
 
                                         
Diluted weighted average shares outstanding
    39,717,931       39,510,231       39,495,845       40,390,393       40,368,946       39,774,122       39,770,196  
 
                                         
     
(a)   In January 2009, Carey Storage repaid, in full, the $35.0 million outstanding balance on its secured credit facility for $28.0 million and recognized a gain of $7.0 million on the repayment of this debt at a discount, inclusive of the profit sharing interest of $4.2 million.
Non-GAAP Financial Disclosure
Funds from operations (FFO) is a non-GAAP financial measure that is commonly used by investors and analysts 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 or funds from operations — as adjusted (AFFO) 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 but should be used in conjunction with GAAP net income. FFO or AFFO disclosed by other REITs may not be comparable to our AFFO 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 AFFO 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, 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. As a result, we believe that AFFO is a useful supplemental measure for investors to consider because it will help them to better understand and measure the performance of our business over time without the potentially distorting impact of these short-term fluctuations.

 

7


 

W. P. CAREY & CO. LLC
Adjusted Cash Flow from Operating Activities

(in thousands, except share and per share amounts)
                 
    Nine months ended September 30,  
    2010     2009  
Cash flow from operating activities
  $ 52,268     $ 49,383  
Adjustments:
               
Distributions received from equity investments in real estate in excess of equity income (a)
    6,046       15,285  
Distributions paid to noncontrolling interests, net (b)
    (213 )     (382 )
Changes in working capital (c)
    6,832       7,014  
 
           
Adjusted cash flow from operating activities
  $ 64,933     $ 71,300  
 
           
Adjusted cash flow per share (diluted)
  $ 1.63     $ 1.79  
 
           
 
               
Distributions declared per share
  $ 1.518     $ 1.494  
 
           
Payout ratio (distributions per share/adjusted cash flow per share)
    93 %     83 %
 
           
Diluted weighted average shares outstanding
    39,774,122       39,770,196  
 
           
     
(a)   We take a substantial portion of our asset management revenue in shares of the CPA® REIT funds. To the extent we receive distributions in excess of the equity income that we recognize, we include such amounts in our evaluation of cash flow from core operations.
 
(b)   Represents noncontrolling interests’ share of distributions made by ventures that we consolidate in our financial statements.
 
(c)   Timing differences arising from the payment of certain liabilities and the receipt of certain receivables in a period other than that in which the item is recognized in determining net income may distort the actual cash flow that our core operations generate. We adjust our GAAP cash flow from operating activities to record such amounts in the period in which the item was actually incurred.
Non-GAAP Financial Disclosure
Adjusted cash flow from operating activities refers to our cash provided by operating activities, as determined in accordance with GAAP, adjusted primarily to reflect timing differences between the period an expense is incurred and paid, to add cash distributions that we receive from our investments in unconsolidated real estate joint ventures in excess of our equity investment in the joint ventures, and to subtract cash distributions that we make to our noncontrolling partners in real estate joint ventures that we consolidate. We hold a number of interests in real estate joint ventures, and we believe that adjusting our GAAP cash provided by operating activities to reflect these actual cash receipts and cash payments may give investors a more accurate picture of our actual cash flow than GAAP cash provided by operating activities alone and that it is a useful supplemental measure for investors to consider. We also believe that adjusted cash flow from operating activities is a useful supplemental measure for assessing the cash flow generated from our core operations, and we use this measure when evaluating distributions to shareholders and as one measure of our operating performance when we determine executive compensation. Adjusted cash flow from operating activities should not be considered as an alternative to cash provided by 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.

 

8


 

W. P. CAREY & CO. LLC
Revenue Stability Analysis (Pro rata basis)

(in thousands)
                                                                                                                 
    Three months ended     Nine months ended September 30,  
    September 30, 2010     June 30, 2010     March 31, 2010     December 31, 2009     September 30, 2009     2010     2009  
    Revenue     %     Revenue     %     Revenue     %     Revenue     %     Revenue     %     Revenue     %     Revenue     %  
Asset management revenues
  $ 19,219       41 %   $ 19,080       33 %   $ 18,820       36 %   $ 19,180       39 %   $ 19,106       38 %   $ 57,119       36 %   $ 57,441       38 %
Pro rata net lease revenues
    26,828       57 %     26,645       45 %     26,654       51 %     23,246       47 %     25,619       51 %     82,100       51 %     79,307       52 %
 
                                                                                   
 
    46,047       98 %     45,725       78 %     45,474       87 %     42,426       86 %     44,725       89 %     139,219       87 %     136,748       89 %
 
                                                                                   
 
                                                                                                               
Structuring revenue (a)
    708       2 %     13,102       22 %     6,834       13 %     7,023       14 %     5,476       11 %     20,644       13 %     16,250       11 %
 
                                                                                   
Total Adjusted Revenue
  $ 46,755       100 %   $ 58,827       100 %   $ 52,308       100 %   $ 49,449       100 %   $ 50,201       100 %   $ 159,863       100 %   $ 152,998       100 %
 
                                                                                   
 
                                                                                                               
Reconciliation of Total Adjusted Revenue
                                                                                                               
Total revenue — as reported
  $ 58,954             $ 70,396             $ 63,091             $ 57,145             $ 59,184             $ 191,941             $ 170,023          
Less: Reimbursed costs from affiliates (b)
    (15,908 )             (15,354 )             (15,048 )             (14,223 )             (13,503 )             (46,310 )             (33,747 )        
Less: Wholesaling revenue
    (2,260 )             (2,230 )             (2,103 )             (1,991 )             (1,869 )             (6,593 )             (4,426 )        
 
                                                                                                               
Add: Pro rata share of revenues from equity investments
    6,918               6,895               7,292               9,548               7,429               23,578               24,075          
 
                                                                                                               
Less: Pro rata share of revenues due to noncontrolling interests
    (949 )             (880 )             (924 )             (1,030 )             (1,040 )             (2,753 )             (2,927 )        
 
                                                                                                 
Total Adjusted Revenue
  $ 46,755             $ 58,827             $ 52,308             $ 49,449             $ 50,201             $ 159,863             $ 152,998          
 
                                                                                                 
 
                                                                                                               
Reconciliation of Total Pro Rata Net Lease Revenues
                                                                                                               
Lease revenues — as reported
  $ 16,203             $ 15,833             $ 16,465             $ 11,181             $ 15,573             $ 48,047             $ 46,732          
 
                                                                                                               
Add: Pro rata share of revenues from equity investments
    6,918               6,895               7,292               9,548               7,429               23,578               24,075          
 
                                                                                                               
Less: Pro rata share of revenues due to noncontrolling interests
    (949 )             (880 )             (924 )             (1,030 )             (1,040 )             (2,753 )             (2,927 )        
Add: Other real estate income (c)
    4,656               4,797               3,821               3,547               3,657               13,228               11,427          
 
                                                                                                 
Total Pro Rata Net Lease Revenues
  $ 26,828             $ 26,645             $ 26,654             $ 23,246             $ 25,619             $ 82,100             $ 79,307          
 
                                                                                                 
     
(a)   We earn structuring revenue on acquisitions structured on behalf of the CPA® REITs and expect significant period-to-period variation in such revenue based on changes in investment volume. Investments structured on behalf of the CPA® REITs totaled approximately $13 million, $291 million, $149 million, $152 million and $121 million for the three months ended September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 2009, respectively.
 
(b)   Total adjusted revenue excludes reimbursements of costs received from affiliated CPA® REITs as they have no impact on net income. Also excluded is wholesaling revenue earned in connection with CPA®:17 — Global’s initial public offering, which is substantially offset by underwriting costs incurred in connection with the offering.
 
(c)   Other real estate income generally consists of revenue from Carey Storage, a subsidiary that invests in domestic self-storage properties, and Livho, a subsidiary that operates a Radisson 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.
 
Note: Amounts presented for prior periods do not reflect adjustments made for assets reclassified as held for sale or sold.
Non-GAAP Financial Disclosure
Total adjusted revenue is a non-GAAP financial measure that represents revenues on a GAAP basis adjusted for our pro rata share of revenues from equity investments as well as the pro rata share of revenues due to noncontrolling interests. We believe that total adjusted revenue is useful to investors and analysts as a supplemental measure of revenues from our core operations, and we use it to evaluate the stability of our underlying revenue streams. Total adjusted revenue should not be considered as an alternative to revenues computed on a GAAP basis as a measure of our profitability. Total adjusted revenue may not be comparable to similarly titled measures of other companies.

 

9


 

W. P. CAREY & CO. LLC
Portfolio Debt Overview (Pro rata basis)
As of September 30, 2010

(in thousands)
Portfolio Debt Maturity
         
Year of Maturity   Outstanding Balance  
2010
  $ 5,000  
2011
    189,875  
2012
    30,350  
2013
    1,372  
2014
    84,847  
2015
    50,350  
2016
    36,175  
2017
    49,291  
2018
    8,775  
2019
    25,152  
2020
    37,126  
2021
     
2022
     
2023
    5,155  
 
     
Total
  $ 523,468  
 
     
Fixed and Variable Rate Debt Analysis
         
Non-Recourse Debt   Outstanding Balance  
Fixed
  $ 210,826  
Fixed — Future Rate Reset
    82,074  
Fixed — Capped
    35,382  
Fixed — Swap Agreement
    48,436  
Variable
    5,000  
 
     
 
    381,718  
 
     
         
Recourse Debt        
Variable — Line of Credit
    141,750  
 
     
Total Debt
  $ 523,468  
 
     
Debt Maturity Analysis
(BAR GRAPH)

 

10


 

W. P. CAREY & CO. LLC
Detailed Debt Summary (Pro rata basis)
As of September 30, 2010

(in thousands)
                         
        Current            
Tenant/Lease Guarantor / Percent Ownership   Rate Type   Interest Rate     Maturity Date   Outstanding Balance  
 
                       
Billipp Portfolio
  Variable     1.52 %   Dec-2010   $ 5,000  
Federal Express Corporation (40%)
  Fixed     7.50 %   Jan-2011     15,734  
AutoZone, Inc. — Series A
  Fixed     6.85 %   Jan-2011     178  
Childtime Childcare, Inc. (34%)
  Fixed     7.50 %   Jan-2011     2,146  
Information Resources, Inc. (33%)
  Fixed     7.60 %   Jan-2011     7,132  
Pioneer Credit Recovery, Inc.
  Fixed     7.34 %   Jan-2011     5,311  
AutoZone, Inc. — Series B
  Fixed     6.85 %   Feb-2011     317  
Career Education Corporation
  Fixed     7.58 %   Jun-2011     6,627  
24 Hour Fitness USA, Inc.
  Fixed     7.50 %   Aug-2011     2,793  
Sprint Spectrum, LP
  Fixed     7.64 %   Aug-2011     7,887  
Qwest Communications, Inc.
  Fixed     7.50 %   Jun-2012     1,356  
AutoZone, Inc. — Series C
  Fixed     6.85 %   Aug-2012     424  
BE Aerospace, Inc.
  Fixed     6.11 %   Nov-2012     8,200  
Faurecia Exhaust Systems, Inc.
  Fixed     5.16 %   Nov-2012     2,397  
Anthony’s Manufacturing Company
  Fixed     5.11 %   Nov-2012     8,314  
Alstom Power, Inc. and Werner Co.
  Fixed     5.18 %   Dec-2012     9,659  
AutoZone, Inc. — Series D
  Fixed     6.85 %   Aug-2013     1,372  
US Airways Group, Inc. (75%)
  Fixed - Capped     4.23 %   Apr-2014     14,558  
The New York Times Company (17.75%)
  Fixed - Capped     5.01 %   Sep-2014     20,824  
Carrefour France, SAS (46%) (a)
  Fixed - Future Rate Reset     5.55 %   Dec-2014     49,465  
Hibbett Sports
  Fixed - Swap     6.45 %   May-2015     4,710  
Lowe’s Home Improvement Warehouse
  Fixed     4.87 %   Sep-2015     8,845  
Bouygues Telecom, S.A. (Tours) (95%) (a)
  Fixed - Future Rate Reset     3.86 %   Oct-2015     6,387  
The American Bottling Company
  Fixed     5.13 %   Nov-2015     30,408  
CheckFree Holdings, Inc. (50%)
  Fixed     6.18 %   Jun-2016     14,616  
Self-Storage Facility — Bentonville, AR (40%)
  Fixed     6.41 %   Jul-2016     838  
Self-Storage Facility — Tallahassee, FL (40%)
  Fixed     6.05 %   Oct-2016     1,582  
Bouygues Telecom, S.A. (Illkirch-Graffenstaden) (75%) (a) (b)
  Fixed - Future Rate Reset     5.01 %   Oct-2016     12,291  
Consolidated Systems, Inc. (60%)
  Fixed     5.87 %   Nov-2016     6,848  
Hellweg Die Profi-Baumärkte GmbH & Co KG (5%) (a)
  Fixed     5.49 %   Jan-2017     14,311  
Amylin Pharmaceuticals, Inc. (50%)
  Fixed     6.20 %   Jul-2017     17,647  
Medica France, S.A. (46%) (a)
  Fixed     5.63 %   Oct-2017     17,333  

 

11


 

W. P. CAREY & CO. LLC
Detailed Debt Summary (Pro rata basis)
As of September 30, 2010

(in thousands)
                         
        Current            
Tenant/Lease Guarantor / Percent Ownership   Rate Type   Interest Rate     Maturity Date   Outstanding Balance  
 
                       
OBI Wroclaw (a)
  Fixed - Swap     5.48 %   Mar-2018   $ 8,775  
Self-Storage Facilities (40%) (b)
  Fixed - Future Rate Reset     7.03 %   Feb-2019/Mar-2019     11,756  
Orbital Sciences Corporation
  Fixed     7.75 %   Jul-2019     13,396  
JPMorgan Chase Bank, N.A.
  Fixed - Swap     5.47 %   Jul-2020     34,951  
Self-Storage Facilities — Chicago, IL (40%)
  Fixed - Future Rate Reset     6.25 %   Aug-2020     2,175  
Hologic, Inc. (36%)
  Fixed     6.40 %   May-2023     5,155  
 
                   
 
                       
Total Non-Recourse Debt
        5.78 %(b)       $ 381,718  
 
                   
 
                       
Unsecured Line of Credit
  Variable     1.15 %   Jun-2011     141,750  
 
                   
 
                       
Total Debt
        4.53 %       $ 523,468  
 
                   
 
     
(a)   Debt balance calculated using an exchange rate of 1.3612 EUR/USD as of September 30, 2010.
 
(b)   Reflects weighted average interest rate for the applicable debt.

 

12


 

W. P. CAREY & CO. LLC
2010 Investment Activity
As of September 30, 2010

(in thousands, except square footage)
Investment Activity
Investment Management Activity — Real Estate
                                 
Portfolio   Tenant/Lease Guarantor   Property Location(s)   Purchase Price     Closing Date   Property Type   Gross Square Footage  
 
CPA®:17 - Global
  Curtiss-Wright Flow Control Service Corporation   Middleburg Heights and Cincinnati, OH   $ 13,777     February-10   Industrial     144,755  
CPA®:17 - Global
  Eroski Sociedad Cooperativa   various locations in Spain     48,944     February-10   Retail     201,823  
CPA®:17 - Global
  Angelica Textile Services, Inc.   locations in AZ, CA, FL, GA, NC, SC, TN and TX     57,592     March-10   Industrial     808,800  
CPA®:17 - Global
  Berry Plastics Corporation   Evansville, IN     28,811     March-10   Industrial     262,000  
CPA®:17 - Global
  TDG (UK) Limited   various locations in the United Kingdom     36,619     Apr-10 & May-10   Warehouse/Distribution     553,679  
CPA®:17 - Global
  Agrokor d.d.   Zagreb, Croatia     101,546     April-10   Warehouse/Distribution     840,826  
CPA®:17 - Global
  Hillsboro Hotel Operator TRS, Inc.   Hillsboro, OR     14,641     May-10   Hospitality     59,398  
CPA®:17 - Global
  JP Morgan Chase Bank, N.A.   Tampa, FL     57,167     May-10   Office     312,872  
CPA®:17 - Global
  The Sun Products Corporation (a)   Bowling Green, KY     42,982     June-10   Industrial   BTS  
CPA®:17 - Global
  Eroski Sociedad Cooperativa   Elorrio, Spain     27,860     June-10   Warehouse/Distribution     399,949  
CPA®:17 - Global (30%)
  Eroski Sociedad Cooperativa   Mallorca, Spain     8,440     June-10   Warehouse/Distribution     59,285  
CPA®:17 - Global
  Sabre Communications Corporation and Cellxion, LLC   Alvarado, TX     1,832     June-10   Office & Industrial     206,616  
CPA®:17 - Global
  Neuca S.A.   Poznan, Poland     9,233     August-10   Warehouse/Distribution   BTS  
CPA®:17 - Global
  Memorial Holdings, LLC   Elberton, GA     3,456     September-10   Office & Industrial     82,322  
 
                           
 
                               
Total Investment Management Acquisitions
            452,900               3,932,325  
 
                           
 
                               
Principal Activity
                               
WPC LLC
  JP Morgan Chase Bank, N.A. (b)   Fort Worth, TX     47,583     February-10   Office     384,246  
WPC LLC (70%)
  Eroski Sociedad Cooperativa   Mallorca, Spain     18,807     June-10   Warehouse/Distribution     138,333  
WPC LLC (40%)
  Self-Storage Facilities   Chicago, IL     3,498     July-10   Self-Storage     260,999  
WPC LLC (40%)
  Self-Storage Facility   Bentonville, AR     984     September-10   Self-Storage     81,680  
WPC LLC (40%)
  Self-Storage Facility   Tallahassee, FL     1,680     September-10   Self-Storage     93,425  
WPC LLC
  Self-Storage Facility   Pensacola, FL     2,750     September-10   Self-Storage     51,867  
 
                           
 
Total Principal Acquisitions
            75,302               1,010,550  
 
                           
 
                               
Total Acquisitions
          $ 528,202               4,942,875  
 
                           
     
(a)   Investment represents a build-to-suit transaction, of which $4.5 million has been funded as of the date of this report.
 
(b)   Investment was funded with proceeds of $36.1 million from the disposition of a property in 2009 in an exchange transaction under Section 1031 of the Internal Revenue Code and $11.5 million from our line of credit.

 

13


 

W. P. CAREY & CO. LLC
2010 Investment Activity
As of September 30, 2010

(in thousands, except square footage)
Disposition Activity
Investment Management Activity
                                 
                    Disposition          
Portfolio(s)   Tenant/Lease Guarantor   Property Location(s)   Gross Sale Price     Date   Property Type   Gross Square Footage  
 
                               
CPA®:14 (60%)
  The Retail Distribution Group, Inc.   Grand Rapids, MI   $ 5,400     March-10   Warehouse/Distribution     107,677  
CPA®:15
  Garden Ridge, Inc.   Round Rock, TX     6,400     March-10   Retail     152,500  
CPA®:15 (33.3%), CPA®:17 - Global (66.7%)
  Wagon Automotive Nagold GmbH Land Sale   Nagold, Germany     2,009     April-10   Land     286,957  
CPA®:14
  PETsMART, Inc.   Fridley, MN     2,272     June-10   Retail     26,040  
CPA®:14
  Atrium Companies, Inc.   Greenville, TX     3,000     August-10   Industrial     284,696  
 
                           
 
                               
Total Investment Management Dispositions
            19,081               857,870  
 
                           
 
                               
Principal Activity
                               
WPC LLC
  The Boeing Company   Houston, TX     725     February-10   Industrial     10,960  
WPC LLC
  BellSouth Telecommunications, Inc.   Lafayette, LA     3,800     March-10   Office     66,846  
WPC LLC (40%)
  The Retail Distribution Group, Inc.   Grand Rapids, MI     3,600     March-10   Warehouse/Distribution     71,784  
WPC LLC
  Multi-tenant property   Houston, TX     2,700     March-10   Retail     29,785  
WPC LLC
  Vertafore, Inc.   College Station, TX     2,600     June-10   Office     33,400  
WPC LLC
  PPD Development, L.P.   Austin, TX     5,579     July-10   Office     148,833  
 
                           
 
                               
Total Principal Dispositions
            19,004               361,608  
 
                           
 
                               
Total Dispositions
          $ 38,085               1,219,478  
 
                           
Foreclosure and Receivership Activity
                                                 
                    Outstanding                    
Portfolio(s)   Tenant/Lease Guarantor     Property Location(s)     Mortgage Balance     Date     Event     Gross Square Footage  
CPA®:15 (50%), CPA®:16 - Global (50%)
  Goertz & Schiele Corporation   Auburn Hills, MI   $ 13,336     January-10   Receivership     218,174  
CPA®:14
  Nortel Networks, Inc.   Richardson, TX     27,262     March-10   Foreclosure     281,758  
CPA®:14
  Buffets, Inc.   Eagan, MN     19,363     June-10   Receivership     99,342  
 
                                           
 
                                               
 
                  $ 59,961                       599,274  
 
                                           

 

14


 

W. P. CAREY & CO. LLC
Portfolio Analysis — Diversification by Rent and Historical Occupancy (Pro rata basis)
As of September 30, 2010

(in thousands)
Portfolio Diversification by Rent (Pro rata basis)
                 
            Percentage of  
Top Ten Tenants/Lease Guarantors   Annualized Rent     Total Annualized Rent  
Carrefour France, SAS
  $ 7,926       9 %
The American Bottling Company
    4,895       5 %
The New York Times Company
    4,358       5 %
JP Morgan Chase Bank, N.A.
    3,862       4 %
Bouygues Telecom, S.A. (France)
    3,328       4 %
Orbital Sciences Corporation
    3,307       4 %
U.S. Airways Group, Inc.
    3,297       4 %
Federal Express Corporation
    3,152       3 %
Titan Corporation
    3,055       3 %
Medica France S.A.
    2,806       3 %
 
             
Total
  $ 39,986          
 
             
W. P. Carey & Co. LLC Historical Occupancy
(LINE GRAPH)
 
     
(a)   Percentage of the portfolio’s total pro rata square footage that was subject to lease.

 

15


 

W. P. CAREY & CO. LLC
Portfolio Analysis — Diversification by Property Type (Pro rata basis)
As of September 30, 2010

(in thousands)
                 
Property Type   Square Footage     Percent  
Warehouse/Distribution
    5,144       37 %
Industrial
    4,924       35 %
Office
    2,359       17 %
Retail
    995       7 %
Other Properties (a)
    364       3 %
Hospitality
    158       1 %
 
           
Total (b)
    13,944       100 %
 
           
Portfolio Diversification by Property Type
(based on square footage)
(PIE CHART)
                 
Property Type   Annualized Rent     Percent  
Office
  $ 33,555       36 %
Industrial
    26,408       29 %
Warehouse/Distribution
    18,645       20 %
Other Properties (a)
    6,442       7 %
Retail
    5,832       6 %
Hospitality
    1,800       2 %
 
           
Total (b)
  $ 92,682       100 %
 
           
Portfolio Diversification by Property Type
(based on annualized rent)
(PIE CHART)
 
     
(a)   Reflects properties used for health care; education, child care and social services; leisure, amusement and recreation; unoccupied land.
 
(b)   Excludes 20 domestic self-storage properties in our Carey Storage subsidiary, totaling approximately 1.4 million square feet.

 

16


 

W. P. CAREY & CO. LLC
Portfolio Analysis — Diversification by Tenant Industry (Pro rata basis)
As of September 30, 2010

(in thousands)
                 
Industry Type (a)   Annualized Rent     Percent  
Retail Trade
  $ 16,050       17 %
Business and Commercial Services
    11,511       13 %
Healthcare, Education and Childcare
    7,786       8 %
Telecommunications
    7,221       8 %
Media: Printing and Publishing
    6,694       7 %
Electronics
    4,953       5 %
Beverages, Food, and Tobacco
    4,895       5 %
Aerospace and Defense
    4,884       5 %
Forest Products and Paper
    3,891       4 %
Banking
    3,862       4 %
Transportation — Personal
    3,524       4 %
Transportation — Cargo
    3,195       4 %
Machinery
    2,477       3 %
Hotels and Gaming
    1,810       2 %
Mining, Metals, and Primary Metal Industries
    1,477       2 %
Consumer and Durable Goods
    1,463       2 %
Federal, State and Local Government
    1,170       1 %
Chemicals, Plastics, Rubber, and Glass
    1,150       1 %
Consumer Non-durable Goods
    975       1 %
Leisure, Amusement, Entertainment
    928       1 %
Other (b)
    2,766       3 %
 
           
Total (c)
  $ 92,682       100 %
 
           
 
     
(a)   Based on the Moody’s Classification System and information provided by the tenant.
 
(b)   Includes revenue from tenants in the following industries: construction and building (1.0%), textiles, leather and apparel (0.9%), automobile (0.7%), multi-tenant properties (0.2%) and grocery (0.2%).
 
(c)   Excludes 20 domestic self-storage properties in our Carey Storage subsidiary, totaling approximately 1.4 million square feet.

 

17


 

W. P. CAREY & CO. LLC
Portfolio Analysis — Diversification by Geography (Pro rata basis)
As of September 30, 2010

(in thousands)
                 
Region   Square Footage     Percent  
United States
               
South
    4,724       34 %
East
    2,949       21 %
West
    2,338       17 %
Midwest
    1,754       12 %
 
           
 
    11,765       84 %
 
           
International
               
France
    1,680       12 %
Germany
    246       2 %
Spain
    139       1 %
Poland
    114       1 %
 
           
 
    2,179       16 %
 
           
Total (a)
    13,944       100 %
 
           
Portfolio Diversification by Geography
(based on square footage)
(PIE CHART)
                 
Region   Annualized Rent     Percent  
United States
               
South
  $ 26,221       28 %
West
    22,127       24 %
Midwest
    12,726       14 %
East
    12,547       13 %
 
           
 
    73,621       79 %
 
           
International
               
France
    14,060       15 %
Germany
    2,287       3 %
Spain
    1,719       2 %
Poland
    995       1 %
 
           
 
    19,061       21 %
 
           
Total (a)
  $ 92,682       100 %
 
           
Portfolio Diversification by Geography
(based on annualized rent)
(PIE CHART)
 
     
(a)   Excludes 20 domestic self-storage properties in our Carey Storage subsidiary, totaling approximately 1.4 million square feet.

 

18


 

W. P. CAREY & CO. LLC
Portfolio Analysis — Lease Maturities (Pro rata basis)
As of September 30, 2010

(in thousands)
                 
            Percentage of  
Year of Lease   Annualized     Total Annualized  
Expiration(a)   Rent     Rent  
2010 (b)
  $ 2,844       3 %
2011
    9,520       10 %
2012
    10,179       11 %
2013
    6,604       7 %
2014
    11,150       12 %
2015
    10,359       11 %
2016
    3,061       3 %
2017
    5,708       6 %
2018
    3,808       4 %
2019
    7,996       9 %
2020
    2,619       3 %
2021
    2,806       3 %
2022
    1,657       2 %
2023
          0 %
2024
    4,358       5 %
2025
    1,198       1 %
2026
    948       1 %
2027
    2,287       3 %
2028
          0 %
2029
          0 %
2030
    5,580       6 %
 
           
Total (c)
  $ 92,682       100 %
 
           
Weighted Average Years to Maturity: 6.60
(BAR GRAPH)
 
     
(a)   Assumes tenant does not exercise renewal option.
 
(b)   Month-to-month properties are counted in 2010 revenue stream.
 
(c)   Excludes 20 domestic self-storage properties in our Carey Storage subsidiary, totaling approximately 1.4 million square feet.

 

19


 

W. P. CAREY & CO. LLC
Consolidated Balance Sheets
(in thousands, except share amounts)
                 
    September 30, 2010     December 31, 2009  
Assets
               
Investments in real estate:
               
Real estate, at cost
  $ 567,933     $ 525,607  
Operating real estate, at cost
    103,343       85,927  
Accumulated depreciation
    (118,510 )     (112,286 )
 
           
Net investments in properties
    552,766       499,248  
Net investments in direct financing leases
    77,892       80,222  
Equity investments in real estate and CPA® REITs
    323,742       304,990  
 
           
Net investments in real estate
    954,400       884,460  
Cash and cash equivalents
    46,250       18,450  
Due from affiliates
    28,217       35,998  
Intangible assets and goodwill, net
    88,994       85,187  
Other assets, net
    39,869       69,241  
 
           
Total assets
  $ 1,157,730     $ 1,093,336  
 
           
 
               
Liabilities and Equity
               
Liabilities:
               
Non-recourse debt
  $ 254,144     $ 215,330  
Line of credit
    141,750       111,000  
Accounts payable, accrued expenses and other liabilities
    34,030       51,710  
Income taxes, net
    36,916       43,831  
Distributions payable
    20,008       31,365  
 
           
Total liabilities
    486,848       453,236  
 
           
Redeemable noncontrolling interest
    6,887       7,692  
 
           
Commitments and contingencies
               
Equity:
               
W. P. Carey members’ equity:
               
Listed shares, no par value, 100,000,000 shares authorized; 39,481,027 and 39,204,605 shares issued and outstanding, respectively
    762,505       754,507  
Distributions in excess of accumulated earnings
    (145,519 )     (138,442 )
Deferred compensation obligation
    10,699       10,249  
Accumulated other comprehensive loss
    (3,592 )     (681 )
 
           
Total W. P. Carey members’ equity
    624,093       625,633  
Noncontrolling interests
    39,902       6,775  
 
           
Total equity
    663,995       632,408  
 
           
Total liabilities and equity
  $ 1,157,730     $ 1,093,336  
 
           

 

20


 

W. P. CAREY & CO. LLC
Consolidated Statements of Income
(in thousands, except share and per share amounts)
                                 
    Three months ended September 30,     Nine months ended September 30,  
    2010     2009     2010     2009  
Revenues
                               
Asset management revenue
  $ 19,219     $ 19,106     $ 57,119     $ 57,441  
Structuring revenue
    708       5,476       20,644       16,250  
Wholesaling revenue
    2,260       1,869       6,593       4,426  
Reimbursed costs from affiliates
    15,908       13,503       46,310       33,747  
Lease revenues
    16,203       15,573       48,047       46,732  
Other real estate income
    4,656       3,657       13,228       11,427  
 
                       
 
    58,954       59,184       191,941       170,023  
 
                       
 
                               
Operating Expenses
                               
General and administrative
    (14,828 )     (14,969 )     (50,560 )     (48,269 )
Reimbursable costs
    (15,908 )     (13,503 )     (46,310 )     (33,747 )
Depreciation and amortization
    (6,067 )     (5,438 )     (18,058 )     (16,795 )
Property expenses
    (3,220 )     (1,903 )     (7,848 )     (5,247 )
Other real estate expenses
    (1,987 )     (1,758 )     (5,575 )     (5,596 )
Impairment charges
    (481 )           (2,749 )     (900 )
 
                       
 
    (42,491 )     (37,571 )     (131,100 )     (110,554 )
 
                       
 
                               
Other Income and Expenses
                               
Other interest income
    329       476       938       1,299  
Income from equity investments in real estate and CPA® REITs
    6,066       2,923       22,846       9,866  
Other income and (expenses)
    1,184       251       562       3,532  
Interest expense
    (4,298 )     (3,786 )     (11,774 )     (11,245 )
 
                       
 
    3,281       (136 )     12,572       3,452  
 
                       
Income from continuing operations before income taxes
    19,744       21,477       73,413       62,921  
Provision for income taxes
    (3,377 )     (6,018 )     (14,240 )     (15,938 )
 
                       
Income from continuing operations
    16,367       15,459       59,173       46,983  
 
                       
Discontinued Operations
                               
Income from operations of discontinued properties
    4       1,115       630       3,279  
Gain on sale of real estate
                460       343  
Impairment charges
          (2,390 )     (5,869 )     (3,770 )
 
                       
Income (loss) from discontinued operations
    4       (1,275 )     (4,779 )     (148 )
 
                       
Net Income
    16,371       14,184       54,394       46,835  
Add: Net loss attributable to noncontrolling interests
    81       186       495       559  
Less: Net income attributable to redeemable noncontrolling interests
    (106 )     (1,019 )     (698 )     (1,357 )
 
                       
Net Income Attributable to W. P. Carey Members
  $ 16,346     $ 13,351     $ 54,191     $ 46,037  
 
                       
Basic Earnings Per Share
                               
Income from continuing operations attributable to W. P. Carey members
  $ 0.41     $ 0.36     $ 1.50     $ 1.16  
Income (loss) from discontinued operations attributable to W. P. Carey members
          (0.03 )     (0.12 )     (0.01 )
 
                       
Net income attributable to W. P. Carey members
  $ 0.41     $ 0.33     $ 1.38     $ 1.15  
 
                       
Diluted Earnings Per Share
                               
Income from continuing operations attributable to W. P. Carey members
  $ 0.41     $ 0.37     $ 1.48     $ 1.16  
Income (loss) from discontinued operations attributable to W. P. Carey members
          (0.03 )     (0.12 )     (0.01 )
 
                       
Net income attributable to W. P. Carey members
  $ 0.41     $ 0.34     $ 1.36     $ 1.15  
 
                       
Weighted Average Shares Outstanding
                               
Basic
    39,180,719       39,727,460       39,161,086       39,163,186  
 
                       
Diluted
    39,717,931       40,368,946       39,774,122       39,770,196  
 
                       
Amounts Attributable to W. P. Carey Members
                               
Income from continuing operations, net of tax
  $ 16,342     $ 14,626     $ 58,970     $ 46,185  
Income (loss) from discontinued operations, net of tax
    4       (1,275 )     (4,779 )     (148 )
 
                       
Net income
  $ 16,346     $ 13,351     $ 54,191     $ 46,037  
 
                       
Distributions Declared Per Share
  $ 0.508     $ 0.500     $ 1.518     $ 1.494  
 
                       

 

21


 

W. P. CAREY & CO. LLC
Consolidated Statements of Cash Flows
(in thousands)
                 
    Nine months ended September 30,  
    2010     2009  
Cash Flows — Operating Activities
               
Net income
  $ 54,394     $ 46,835  
Adjustments to net income:
               
Depreciation and amortization including intangible assets and deferred financing costs
    18,496       18,385  
Income from equity investments in real estate and CPA® REITs in excess of distributions received
    (5,373 )     (4,303 )
Straight-line rent and financing lease adjustments
    144       1,560  
Gain on sale of real estate
    (460 )     (343 )
Gain on extinguishment of debt
          (6,991 )
Allocation of (loss) earnings to profit-sharing interest
    (781 )     3,976  
Management income received in shares of affiliates
    (26,262 )     (23,451 )
Unrealized loss (gain) on foreign currency transactions and others
    143       (257 )
Realized loss (gain) on foreign currency transactions and others
    176       (260 )
Impairment charges
    8,618       4,670  
Stock-based compensation expense
    6,695       7,777  
Deferred acquisition revenue received
    19,248       23,109  
Increase in structuring revenue receivable
    (9,900 )     (8,196 )
Decrease in income taxes, net
    (9,461 )     (11,137 )
Net changes in other operating assets and liabilities
    (3,409 )     (1,991 )
 
           
Net cash provided by operating activities
    52,268       49,383  
 
           
 
               
Cash Flows — Investing Activities
               
Distributions received from equity investments in real estate and CPA® REITs in excess of equity income
    9,964       33,917  
Capital contributions to equity investments
          (3,709 )
Purchases of real estate and equity investments in real estate
    (93,059 )     (39,632 )
VAT paid in connection with acquisition of real estate
    (4,222 )      
Capital expenditures
    (2,008 )     (6,110 )
Proceeds from sale of real estate
    14,591       6,927  
Funds released from escrow in connection with the sale of property
    36,132        
Proceeds from transfer of profit-sharing interest
          21,928  
 
           
Net cash (used in) provided by investing activities
    (38,602 )     13,321  
 
           
 
               
Cash Flows — Financing Activities
               
Distributions paid
    (72,625 )     (58,787 )
Contributions from noncontrolling interests
    11,403       2,137  
Distributions to noncontrolling interests
    (2,022 )     (4,589 )
Contributions from profit-sharing interest
    3,694        
Distributions to profit-sharing interest
    (693 )     (5,372 )
Scheduled payments of mortgage principal
    (12,218 )     (7,527 )
Prepayments of mortgage principal
          (11,918 )
Proceeds from mortgage financing
    52,816       42,494  
Proceeds from line of credit
    83,250       116,500  
Prepayments of line of credit
    (52,500 )     (125,518 )
Proceeds from loans from affiliates
          1,625  
Payment of financing costs
    (1,083 )     (849 )
Proceeds from issuance of shares
    3,537       1,356  
Windfall tax benefits associated with stock-based compensation awards
    1,226       275  
Repurchase and retirement of shares
          (10,686 )
 
           
Net cash provided by (used in) financing activities
    14,785       (60,859 )
 
           
 
               
Change in Cash and Cash Equivalents During the Period
               
Effect of exchange rate changes on cash
    (651 )     364  
 
           
Net increase in cash and cash equivalents
    27,800       2,209  
Cash and cash equivalents, beginning of period
    18,450       16,799  
 
           
Cash and cash equivalents, end of period
  $ 46,250     $ 19,008  
 
           

 

22


 

W. P. CAREY & CO. LLC
Detailed Property Summary
September 30, 2010
                                                                                         
                                                    Annualized Rent     Percentage of Total                    
Tenant/Lease Guarantor   Percent Ownership     Property Location   Property Type   Tenant Industry   Region     Square Footage(e)     (in thousands)     Rent(e)     Increase Factor     Lease Expiration     Maximum Term  
Carrefour France, SAS (a)
    46 %   Nimes, FR   Warehouse/Distribution   Retail Trade   Europe     177,786     $ 1,312       1.42 %   INSEE (b)   Nov-2012   Nov-2012
Carrefour France, SAS (a)
    46 %   Colomiers, FR   Warehouse/Distribution   Retail Trade   Europe     174,261       1,034       1.12 %   INSEE (b)   Jun-2015   Jun-2018
Carrefour France, SAS (a)
    46 %   Crepy en Valois, FR   Warehouse/Distribution   Retail Trade   Europe     152,365       943       1.02 %   INSEE (b)   Jun-2015   Jun-2018
Carrefour France, SAS (a)
    46 %   Lens, FR   Warehouse/Distribution   Retail Trade   Europe     126,925       753       0.81 %   INSEE (b)   Jun-2015   Jun-2018
Carrefour France, SAS (a)
    46 %   Nîmes, FR   Warehouse/Distribution   Retail Trade   Europe     134,937       696       0.75 %   INSEE (b)   Jun-2015   Jun-2018
Carrefour France, SAS (a)
    46 %   Ploufragan, FR   Warehouse/Distribution   Retail Trade   Europe     122,591       648       0.70 %   INSEE (b)   Jun-2015   Jun-2018
Carrefour France, SAS (a)
    46 %   Crepy en Valois, FR   Warehouse/Distribution   Retail Trade   Europe     101,248       627       0.68 %   INSEE (b)   Jun-2015   Jun-2018
Carrefour France, SAS (a)
    46 %   Thuit Hebert, FR   Warehouse/Distribution   Retail Trade   Europe     107,958       557       0.60 %   INSEE (b)   Jun-2015   Jun-2018
Carrefour France, SAS (a)
    46 %   Cholet, FR   Warehouse/Distribution   Retail Trade   Europe     99,261       525       0.57 %   INSEE (b)   Jun-2015   Jun-2018
Carrefour France, SAS (a)
    46 %   Colomiers, FR   Warehouse/Distribution   Retail Trade   Europe     60,292       358       0.39 %   INSEE (b)   Jun-2015   Jun-2018
Carrefour France, SAS (a)
    46 %   Thuit Hebert, FR   Warehouse/Distribution   Retail Trade   Europe     68,477       353       0.38 %   INSEE (b)   Jun-2015   Jun-2018
Carrefour France, SAS (a)
    46 %   Colomiers, FR   Warehouse/Distribution   Retail Trade   Europe     7,524       45       0.05 %   INSEE (b)   Jun-2015   Jun-2018
Carrefour France, SAS (a)
    46 %   Lens, FR   Warehouse/Distribution   Retail Trade   Europe     4,349       26       0.03 %   INSEE (b)   Jun-2015   Jun-2018
Carrefour France, SAS (a)
    46 %   Colomiers, FR   Warehouse/Distribution   Retail Trade   Europe     2,899       17       0.02 %   INSEE (b)   Jun-2015   Jun-2018
Carrefour France, SAS (a)
    46 %   Lens, FR   Warehouse/Distribution   Retail Trade   Europe     2,598       15       0.02 %   INSEE (b)   Jun-2015   Jun-2018
Carrefour France, SAS (a)
    46 %   Nîmes, FR   Warehouse/Distribution   Retail Trade   Europe     2,554       13       0.01 %   INSEE (b)   Jun-2015   Jun-2018
Carrefour France, SAS (a)
    46 %   Nîmes, FR   Warehouse/Distribution   Retail Trade   Europe     596       3       0.00 %   INSEE (b)   Jun-2015   Jun-2018
 
                                                                                 
Carrefour France, SAS Total
                                            1,346,621       7,925       8.55 %                        
 
                                                                                       
The American Bottling Company
    100 %   Irving, TX   Industrial   Beverages, Food, and Tobacco   South     459,497       2,969       3.20 %   CPI   Jul-2014   Jul-2029
The American Bottling Company
    100 %   Houston, TX   Industrial   Beverages, Food, and Tobacco   South     262,450       1,926       2.08 %   CPI   Jul-2014   Jul-2029
 
                                                                                 
The American Bottling Company Total
                                            721,947       4,895       5.28 %                        
 
                                                                                       
The New York Times Company
    18 %   New York, NY   Office   Media: Printing and Publishing   East     126,420       4,358       4.70 %   Fixed   Mar-2024   Mar-2044
 
                                                                                       
JP Morgan Chase Bank, N.A.
    100 %   Fort Worth, TX   Office   Banking   South     384,246       3,862       4.17 %   None   Feb-2030   Feb-2050
 
                                                                                       
Orbital Sciences Corporation
    100 %   Chandler, AZ   Industrial   Aerospace and Defense   West     355,307       3,307       3.57 %   CPI   Sep-2019   Sep-2029
 
                                                                                       
US Airways Group, Inc.
    75 %   Tempe, AZ   Office   Transportation - Personal   West     167,890       3,297       3.56 %   CPI   Apr-2014   Nov-2029
 
                                                                                       
Federal Express Corporation
    40 %   Collierville, TN   Office   Transportation - Cargo   South     39,038       717       0.77 %   CPI   Aug-2019   Nov-2039
Federal Express Corporation
    40 %   Collierville, TN   Office   Transportation - Cargo   South     39,038       717       0.77 %   CPI   Aug-2019   Nov-2039
Federal Express Corporation
    40 %   Collierville, TN   Office   Transportation - Cargo   South     39,038       717       0.77 %   CPI   Aug-2019   Nov-2039
Federal Express Corporation
    40 %   Collierville, TN   Office   Transportation - Cargo   South     39,038       717       0.77 %   CPI   Aug-2019   Nov-2039
Federal Express Corporation
    100 %   Corpus Christi, TX   Warehouse/Distribution   Transportation - Cargo   South     30,212       213       0.23 %   Fixed   May-2012   May-2017
Federal Express Corporation
    100 %   College Station, TX   Warehouse/Distribution   Transportation - Cargo   South     12,080       70       0.08 %   Fixed   Apr-2012   Apr-2017
 
                                                                                 
Federal Express Corporation Total
                                            198,444       3,151       3.40 %                        
 
                                                                                       
The Titan Corporation
    100 %   San Diego, CA   Office   Electronics   West     166,403       3,055       3.30 %   CPI   Jul-2012   Jul-2017
 
                                                                                       
Bouygues Telecom, S.A.(a)
    75 %   Illkirch-Graffenstaden, France   Office   Telecommunications   Europe     72,076       2,386       2.57 %   INSEE (b)   Feb-2013   Feb-2013
Bouygues Telecom, S.A.(a)
    95 %   Tours, France   Office   Telecommunications   Europe     62,371       941       1.02 %   INSEE (b)   Sep-2012   Sep-2012
 
                                                                                 
Bouygues Telecom, S.A. Total
                                            134,447       3,327       3.59 %                        
 
                                                                                       
CheckFree Corporation
    50 %   Norcross, GA   Office   Business and Commercial Services   South     50,063       993       1.07 %   CPI   Dec-2015   Dec-2030
CheckFree Corporation
    50 %   Norcross, GA   Office   Business and Commercial Services   South     34,150       843       0.91 %   CPI   Dec-2015   Dec-2030
CheckFree Corporation
    50 %   Norcross, GA   Office   Business and Commercial Services   South     26,125       636       0.69 %   CPI   Dec-2015   Dec-2030
CheckFree Corporation
    50 %   Norcross, GA   Land   Business and Commercial Services   South     1       80       0.09 %   CPI   Dec-2015   Dec-2030
 
                                                                                 
CheckFree Corporation Total
                                            110,338       2,552       2.75 %                        
 
                                                                                       
Medica France S.A. (a)
    46 %   Paris, France   Other   Healthcare, Education and Childcare   Europe     24,769       623       0.67 %   INSEE (b)   Sep-2021   Sep-2030
Medica France S.A. (a)
    46 %   Sarcelles, France   Other   Healthcare, Education and Childcare   Europe     34,620       623       0.67 %   INSEE (b)   Sep-2021   Sep-2030
Medica France S.A. (a)
    46 %   Chatou, France   Other   Healthcare, Education and Childcare   Europe     24,666       390       0.42 %   INSEE (b)   Sep-2021   Sep-2030
Medica France S.A. (a)
    46 %   Poissy, France   Other   Healthcare, Education and Childcare   Europe     24,592       390       0.42 %   INSEE (b)   Sep-2021   Sep-2030
Medica France S.A. (a)
    46 %   Rosny sous Bois, France   Other   Healthcare, Education and Childcare   Europe     21,846       390       0.42 %   INSEE (b)   Sep-2021   Sep-2030
Medica France S.A. (a)
    46 %   Rueil Malmaison, France   Other   Healthcare, Education and Childcare   Europe     23,813       390       0.42 %   INSEE (b)   Sep-2021   Sep-2030
 
                                                                                 
Medica France S.A. Total
                                            154,306       2,806       2.36 %                        
 
                                                                                       
Schuler AG (a)
    33 %   Göppingen, Germany   Industrial   Machinery   Europe     246,355       2,287       2.47 %   CPI   Oct-2027   Oct-2047
 
                                                                                       
AutoZone, Inc.
    100 %   San Antonio, TX   Retail   Retail Trade   South     5,400       56       0.06 %   None   Aug-2013   Aug-2038
AutoZone, Inc.
    100 %   Albuquerque, NM   Retail   Retail Trade   West     5,400       55       0.06 %   None   Aug-2013   Aug-2038
AutoZone, Inc.
    100 %   Jacksonville, FL   Retail   Retail Trade   South     5,400       54       0.06 %   None   Aug-2013   Aug-2038
AutoZone, Inc.
    100 %   Houston, TX   Retail   Retail Trade   South     5,400       53       0.06 %   None   Aug-2013   Aug-2038
AutoZone, Inc.
    100 %   Gastonia, NC   Retail   Retail Trade   East     5,400       52       0.06 %   None   Jan-2011   Jan-2026
AutoZone, Inc.
    100 %   Corpus Christi, TX   Retail   Retail Trade   South     6,600       52       0.06 %   None   Jan-2011   Jan-2026
AutoZone, Inc.
    100 %   Statesville, NC   Retail   Retail Trade   East     5,400       51       0.06 %   None   Jan-2011   Jan-2026
AutoZone, Inc.
    100 %   Lenoir, NC   Retail   Retail Trade   East     5,400       51       0.06 %   None   Jan-2011   Feb-2026
AutoZone, Inc.
    100 %   Corpus Christi, TX   Retail   Retail Trade   South     6,480       51       0.06 %   None   Jan-2011   Jan-2026
AutoZone, Inc.
    100 %   Victoria, TX   Retail   Retail Trade   South     6,480       51       0.06 %   None   Jan-2011   Jan-2026
AutoZone, Inc.
    100 %   Macon, GA   Retail   Retail Trade   East     5,400       50       0.05 %   None   Aug-2013   Aug-2038
AutoZone, Inc.
    100 %   Lexington, SC   Retail   Retail Trade   South     5,400       50       0.05 %   None   Aug-2013   Aug-2038
AutoZone, Inc.
    100 %   St. Peters, MO   Retail   Retail Trade   Midwest     5,400       49       0.05 %   Fixed   Aug-2012   Aug-2037

 

23


 

W. P. CAREY & CO. LLC
Detailed Property Summary
September 30, 2010
                                                                                         
                                                    Annualized Rent     Percentage of Total                    
Tenant/Lease Guarantor   Percent Ownership     Property Location   Property Type   Tenant Industry   Region     Square Footage(e)     (in thousands)     Rent(e)     Increase Factor     Lease Expiration     Maximum Term  
AutoZone, Inc.
    100 %   St. Peters, MO   Retail   Retail Trade   Midwest     6,660       49       0.05 %   Fixed   Aug-2012   Aug-2037
AutoZone, Inc.
    100 %   Jacksonville, FL   Retail   Retail Trade   South     5,400       48       0.05 %   None   Aug-2013   Aug-2038
AutoZone, Inc.
    100 %   Decatur, AL   Retail   Retail Trade   South     5,400       45       0.05 %   None   Feb-2011   Feb-2026
AutoZone, Inc.
    100 %   Phenix City, AL   Retail   Retail Trade   South     5,400       45       0.05 %   None   Feb-2011   Feb-2026
AutoZone, Inc.
    100 %   Mobile, AL   Retail   Retail Trade   South     5,400       45       0.05 %   None   Feb-2011   Feb-2026
AutoZone, Inc.
    100 %   Alton, IL   Retail   Retail Trade   Midwest     5,400       45       0.05 %   None   Feb-2011   Feb-2026
AutoZone, Inc.
    100 %   Belleville, IL   Retail   Retail Trade   Midwest     5,400       45       0.05 %   None   Feb-2011   Feb-2026
AutoZone, Inc.
    100 %   Breckenridge, MO   Retail   Retail Trade   Midwest     5,400       44       0.05 %   None   Feb-2011   Feb-2026
AutoZone, Inc.
    100 %   Chickasaw, AL   Retail   Retail Trade   South     5,400       43       0.05 %   None   Feb-2011   Feb-2026
AutoZone, Inc.
    100 %   Montgomery, AL   Retail   Retail Trade   South     5,400       43       0.05 %   None   Feb-2011   Feb-2026
AutoZone, Inc.
    100 %   Columbus, GA   Retail   Retail Trade   South     5,400       43       0.05 %   None   Feb-2011   Feb-2026
AutoZone, Inc.
    100 %   Albany, GA   Retail   Retail Trade   South     5,400       43       0.05 %   None   Aug-2013   Aug-2038
AutoZone, Inc.
    100 %   West Monroe, LA   Retail   Retail Trade   South     5,400       43       0.05 %   None   Feb-2011   Feb-2026
AutoZone, Inc.
    100 %   Baton Rouge, LA   Retail   Retail Trade   South     5,400       43       0.05 %   None   Feb-2011   Feb-2026
AutoZone, Inc.
    100 %   Lake Charles, LA   Retail   Retail Trade   South     6,480       43       0.05 %   None   Feb-2011   Feb-2026
AutoZone, Inc.
    100 %   Lake Charles, LA   Retail   Retail Trade   Midwest     6,480       43       0.05 %   None   Feb-2011   Feb-2026
AutoZone, Inc.
    100 %   Maplewood, MO   Retail   Retail Trade   Midwest     6,480       43       0.05 %   None   Feb-2011   Feb-2026
AutoZone, Inc.
    100 %   Overland, MO   Retail   Retail Trade   South     6,480       43       0.05 %   None   Feb-2011   Feb-2026
AutoZone, Inc.
    100 %   Charlotte, NC   Retail   Retail Trade   East     5,400       42       0.05 %   None   Jan-2011   Jan-2026
AutoZone, Inc.
    100 %   San Antonio, TX   Retail   Retail Trade   South     5,400       42       0.05 %   None   Jan-2011   Jan-2026
AutoZone, Inc.
    100 %   Farmington, NM   Retail   Retail Trade   West     5,400       41       0.04 %   None   Aug-2013   Aug-2038
AutoZone, Inc.
    100 %   Brunswick, GA   Retail   Retail Trade   South     5,400       40       0.04 %   Fixed   Aug-2013   Aug-2038
AutoZone, Inc.
    100 %   Hammond, LA   Retail   Retail Trade   South     6,480       40       0.04 %   None   Aug-2012   Aug-2037
AutoZone, Inc.
    100 %   Waco, TX   Retail   Retail Trade   South     4,800       38       0.04 %   None   Jan-2011   Jan-2026
AutoZone, Inc.
    100 %   Collinsville, IL   Retail   Retail Trade   Midwest     5,400       36       0.04 %   None   Feb-2011   Feb-2026
AutoZone, Inc.
    100 %   Wood River, IL   Retail   Retail Trade   Midwest     5,400       36       0.04 %   None   Feb-2011   Feb-2026
AutoZone, Inc.
    100 %   St. Louis, MO   Retail   Retail Trade   Midwest     5,400       36       0.04 %   None   Feb-2011   Feb-2026
AutoZone, Inc.
    100 %   Panama City, FL   Retail   Retail Trade   South     5,401       35       0.04 %   Fixed   Aug-2012   Aug-2037
AutoZone, Inc.
    100 %   Jacksonville, FL   Retail   Retail Trade   South     5,000       35       0.04 %   Fixed   Aug-2012   Aug-2037
AutoZone, Inc.
    100 %   Augusta, GA   Retail   Retail Trade   South     5,400       34       0.04 %   None   Aug-2013   Aug-2038
AutoZone, Inc.
    100 %   Bessemer, AL   Retail   Retail Trade   South     5,400       32       0.03 %   None   Feb-2011   Feb-2026
AutoZone, Inc.
    100 %   Shelby, NC   Retail   Retail Trade   South     6,660       31       0.03 %   None   Aug-2012   Aug-2037
AutoZone, Inc.
    100 %   Austin, TX   Retail   Retail Trade   South     4,000       31       0.03 %   None   Jan-2011   Jan-2026
AutoZone, Inc.
    100 %   Nederland, TX   Retail   Retail Trade   South     4,000       31       0.03 %   None   Jan-2011   Jan-2026
AutoZone, Inc.
    100 %   West Orange, TX   Retail   Retail Trade   East     4,000       31       0.03 %   Fixed   Jan-2011   Jan-2026
AutoZone, Inc.
    100 %   Kannapolis, NC   Retail   Retail Trade   East     6,408       24       0.03 %   Fixed   Oct-2015   Oct-2025
AutoZone, Inc.
    100 %   Baton Rouge, LA   Retail   Retail Trade   South     5,401       23       0.02 %   Fixed   Apr-2014   Apr-2019
AutoZone, Inc.
    100 %   Knoxville, TN   Retail   Retail Trade   South     6,660       23       0.02 %   Fixed   May-2014   May-2024
AutoZone, Inc.
    100 %   Baton Rouge, LA   Retail   Retail Trade   South     6,600       22       0.02 %   Fixed   Mar-2014   Mar-2024
AutoZone, Inc.
    100 %   East Ridge, TN   Retail   Retail Trade   South     6,480       21       0.02 %   Fixed   Oct-2013   Oct-2023
AutoZone, Inc.
    100 %   Morgantown, NC   Retail   Retail Trade   East     5,400       19       0.02 %   Fixed   Oct-2015   Aug-2019
 
                                                                                 
AutoZone, Inc. Total
                                            302,230       2,214       2.39 %                        
 
                                                                                       
Brown Institute, Ltd.
    100 %   Mendota Heights, MN   Other   Healthcare, Education and Childcare   Midwest     136,400       2,069       2.23 %   Fixed   May-2011   May-2019
 
                                                                                       
Sybron Dental Specialties, Inc.
    100 %   Romulus, MI   Industrial   Healthcare, Education and Childcare   Midwest     220,000       1,454       1.57 %   CPI   Dec-2018   Dec-2043
Sybron Dental Specialties, Inc.
    100 %   Glendora, CA   Office   Healthcare, Education and Childcare   West     25,000       555       0.60 %   CPI   Dec-2018   Dec-2043
 
                                                                                 
Sybron Dental Specialties, Inc. Total
                                            245,000       2,009       2.17 %                        
 
                                                                                       
Information Resources, Inc.
    33 %   Chicago, IL   Office   Business and Commercial Services   Midwest     53,195       1,180       1.27 %   CPI   Oct-2013   Oct-2015
Information Resources, Inc.
    33 %   Chicago, IL   Office   Business and Commercial Services   Midwest     30,797       683       0.74 %   CPI   Oct-2013   Oct-2023
 
                                                                                 
Information Resources, Inc. Total
                                            83,992       1,863       2.01 %                        
 
                                                                                       
LIVHO, Inc.
    100 %   Livonia, MI   Hospitality   Hotels and Gaming   Midwest     158,000       1,800       1.94 %   Fixed   Jan-2012   Jan-2012
 
                                                                                       
Unisource Worldwide, Inc.
    100 %   Commerce, CA   Warehouse/Distribution   Forest Products and Paper   West     411,561       1,422       1.53 %   Fixed   Apr-2020   Apr-2030
Unisource Worldwide, Inc.
    100 %   Anchorage, AK   Warehouse/Distribution   Forest Products and Paper   West     44,712       362       0.39 %   Fixed   Dec-2014   Dec-2029
 
                                                                                 
Unisource Worldwide, Inc. Total
                                            456,273       1,784       1.92 %                        
 
                                                                                       
Amylin Pharmaceuticals, Inc.
    50 %   San Diego, CA   Office   Business and Commercial Services   West     35,951       910       0.98 %   Fixed   Jul-2019   Jul-2029
Amylin Pharmaceuticals, Inc.
    50 %   San Diego, CA   Industrial   Business and Commercial Services   West     36,204       910       0.98 %   Fixed   Jul-2019   Jul-2029
 
                                                                                 
Amylin Pharmaceuticals, Inc. Total
                                            72,155       1,820       1.96 %                        

 

24


 

W. P. CAREY & CO. LLC
Detailed Property Summary
September 30, 2010
                                                                                         
                                                    Annualized Rent     Percentage of Total                    
Tenant/Lease Guarantor   Percent Ownership     Property Location   Property Type   Tenant Industry   Region   Square Footage(e)     (in thousands)     Rent(e)     Increase Factor     Lease Expiration     Maximum Term  
BE Aerospace, Inc.
    100 %   Lenexa, KS   Industrial   Aerospace and Defense   Midwest     130,094       656       0.71 %   Fixed   Sep-2017   Sep-2037
BE Aerospace, Inc.
    100 %   Winston-Salem, NC   Warehouse/Distribution   Aerospace and Defense   East     90,800       264       0.28 %   Fixed   Sep-2017   Sep-2037
BE Aerospace, Inc.
    100 %   Winston-Salem, NC   Industrial   Aerospace and Defense   East     74,026       215       0.23 %   Fixed   Sep-2017   Sep-2037
BE Aerospace, Inc.
    100 %   Winston-Salem, NC   Industrial   Aerospace and Defense   East     50,200       146       0.16 %   Fixed   Sep-2017   Sep-2037
BE Aerospace, Inc.
    100 %   Winston-Salem, NC   Office   Aerospace and Defense   East     43,788       127       0.14 %   Fixed   Sep-2017   Sep-2037
BE Aerospace, Inc.
    100 %   Dallas, TX   Industrial   Aerospace and Defense   South     22,680       125       0.13 %   Fixed   Sep-2017   Sep-2037
BE Aerospace, Inc.
    100 %   Winston-Salem, NC   Industrial   Aerospace and Defense   East     15,402       45       0.05 %   Fixed   Sep-2017   Sep-2037
 
                                                                                 
BE Aerospace, Inc. Total
                                            426,990       1,578       1.70 %                        
 
                                                                                       
Cleo, Inc.
    100 %   Memphis, TN   Warehouse/Distribution   Forest Products and Paper   South     614,274       958       1.03 %   CPI   Dec-2011   Dec-2011
Cleo, Inc.
    100 %   Memphis, TN   Warehouse/Distribution   Forest Products and Paper   South     391,896       612       0.66 %   CPI   Dec-2011   Dec-2011
 
                                                                                 
Cleo, Inc. Total
                                            1,006,170       1,570       1.69 %                        
 
                                                                                       
Eroski Sociedad Cooperativa
    70 %   Mallorca, Spain   Warehouse/Distribution   Retail Trade   Europe     138,383       1,719       1.85 %   3% or CPI   Jun-2030   Jun-2045
 
                                                                                       
Lowe’s Home Improvement Warehouse
    100 %   Bellevue, WA   Retail   Retail Trade   West     143,352       1,539       1.66 %   CPI   Aug-2018   Aug-2018
 
                                                                                       
World Color Printing (USA) Corp.
    100 %   Doraville, GA   Industrial   Media: Printing and Publishing   South     432,559       1,501       1.62 %   CPI   Dec-2017   Dec-2042
 
                                                                                       
Sprint Spectrum, L.P.
    100 %   Rio Rancho, NM   Office   Telecommunications   West     94,730       1,425       1.54 %   Fixed   May-2011   May-2021
 
                                                                                       
AT&T Corporation
    100 %   Bridgeton, MO   Industrial   Telecommunications   Midwest     85,510       1,360       1.47 %   Fixed   Sep-2011   Jun-2021
 
                                                                                       
Hologic, Inc.
    36 %   Bedford, MA   Industrial   Electronics   East     74,520       1,035       1.12 %   CPI   Aug-2022   Aug-2042
Hologic, Inc.
    36 %   Danbury, CT   Industrial   Electronics   East     22,335       235       0.25 %   CPI   Aug-2022   Aug-2042
 
                                                                                 
Hologic, Inc. Total
                                            96,855       1,270       1.37 %                        
 
                                                                                       
Omnicom Group, Inc.
    100 %   Venice, CA   Office   Business and Commercial Services   West     77,719       1,194       1.29 %   CPI   Sep-2010   Sep-2030
 
                                                                                       
United States Postal Service
    100 %   Bloomingdale, IL   Office   Federal, State and Local Government   Midwest     60,000       1,170       1.26 %   Fixed   Apr-2016   Apr-2016
 
                                                                                       
Anthony’s Manufacturing Company, Inc.
    100 %   San Fernando, CA   Industrial   Consumer and Durable Goods   West     95,420       606       0.65 %   CPI   May-2012   May-2012
Anthony’s Manufacturing Company, Inc.
    100 %   San Fernando, CA   Industrial   Consumer and Durable Goods   West     40,285       256       0.28 %   CPI   May-2012   May-2012
Anthony’s Manufacturing Company, Inc.
    100 %   San Fernando, CA   Industrial   Consumer and Durable Goods   West     39,920       254       0.27 %   CPI   May-2012   May-2012
Anthony’s Manufacturing Company, Inc.
    100 %   San Fernando, CA   Industrial   Consumer and Durable Goods   West     7,220       46       0.05 %   CPI   May-2012   May-2012
 
                                                                                 
Anthony’s Manufacturing Company, Inc. Total
                                            182,845       1,162       1.25 %                        
 
                                                                                       
Fiskars Brands, Inc.
    100 %   Apopka, FL   Industrial   Chemicals, Plastics, Rubber, and Glass   South     260,160       1,081       1.17 %   Fixed   Mar-2015   Mar-2015
Fiskars Brands, Inc.
    100 %   Apopka, FL   Industrial   Chemicals, Plastics, Rubber, and Glass   South     109,377       69       0.07 %   Fixed   Mar-2015   Mar-2015
 
                                                                                 
Fiskars Brands, Inc. Total
                                            369,537       1,150       1.24 %                        
 
                                                                                       
Lockheed Martin Corporation
    100 %   King of Prussia, PA   Office   Business and Commercial Services   South     88,578       864       0.93 %   Fixed   Jul-2013   Jul-2023
Lockheed Martin Corporation
    100 %   Webster, TX   Industrial   Business and Commercial Services   East     30,176       309       0.33 %   Fixed   Oct-2011   Jul-2021
 
                                                                                 
Lockheed Martin Corporation Total
                                            118,754       1,173       1.27 %                        
 
                                                                                       
The United States Playing Card Company
    100 %   Erlanger, KY   Warehouse/Distribution   Media: Printing and Publishing   East     409,600       836       0.90 %   Fixed   Jun-2017   Jun-2020
The United States Playing Card Company
    100 %   Erlanger, KY   Warehouse/Distribution   Consumer and Durable Goods   East     162,604       301       0.32 %   Fixed   Jun-2017   Jun-2020
 
                                                                                 
United States Playing Card Total
                                            572,204       1,137       1.23 %                        
 
                                                                                       
United Space Alliance, LLC
    100 %   Webster, TX   Warehouse/Distribution   Business and Commercial Services   South     91,800       573       0.62 %   None   Sep-2010   Sep-2012
United Space Alliance, LLC
    100 %   Webster, TX   Industrial   Business and Commercial Services   South     38,150       412       0.44 %   None   Sep-2010   Sep-2011
United Space Alliance, LLC
    100 %   Webster, TX   Industrial   Business and Commercial Services   South     5,856       63       0.07 %   None   Sep-2010   Sep-2011
United Space Alliance, LLC
    100 %   Webster, TX   Industrial   Business and Commercial Services   South     2,044       22       0.02 %   None   Sep-2010   Sep-2011
 
                                                                                 
United Space Alliance LLC Total
                                            137,850       1,070       1.15 %                        
 
                                                                                       
Swat-Fame, Inc.
    100 %   City of Industry, CA   Industrial   Textiles, Leather, and Apparel   West     233,205       851       0.92 %   CPI   Jun-2020   Jun-2020
 
                                                                                       
Consolidated Systems, Inc.
    60 %   Columbia, SC   Industrial   Mining, Metals, and Primary Metal Industries   East     294,249       823       0.89 %   Fixed   Oct-2026   Oct-2046
Consolidated Systems, Inc.
    60 %   Columbia, SC   Office   Mining, Metals, and Primary Metal Industries   East     24,459       68       0.07 %   Fixed   Oct-2026   Oct-2046
Consolidated Systems, Inc.
    60 %   Columbia, SC   Warehouse/Distribution   Mining, Metals, and Primary Metal Industries   East     13,791       39       0.04 %   Fixed   Oct-2026   Oct-2046
Consolidated Systems, Inc.
    60 %   Columbia, SC   Warehouse/Distribution   Mining, Metals, and Primary Metal Industries   East     6,266       18       0.02 %   Fixed   Oct-2026   Oct-2046
 
                                                                                 
Consolidated Systems, Inc. Total
                                            338,765       948       1.02 %                        
 
                                                                                       
Sports Wholesale, Inc.
    100 %   Birmingham, AL   Warehouse/Distribution   Retail Trade   South     219,312       924       1.00 %   CPI   Dec-2014   Dec-2029
 
                                                                                       
24 Hour Fitness USA, Inc.
    100 %   Austin, TX   Other   Leisure, Amusement, Entertainment   South     43,935       928       1.00 %   CPI   Jun-2017   Jun-2037
 
                                                                                       
OBI Group (a)
    100 %   Wroclaw, Poland   Retail   Retail Trade   Europe     113,559       995       1.07 %   CPI   Dec-2025   Dec-2040
 
                                                                                       
NVR, Inc.
    100 %   Thurmont, MD   Industrial   Construction and Building   East     150,468       735       0.79 %   CPI   Apr-2014   Apr-2039
NVR, Inc.
    100 %   Farmington, NY   Industrial   Construction and Building   East     29,273       143       0.15 %   CPI   Apr-2014   Apr-2039
 
                                                                                 
NVR, Inc. Total
                                            179,741       878       0.95 %                        
 
                                                                                       
Juniper Networks, Inc.
    100 %   Sunnyvale, CA   Industrial   Electronics   West     50,311       628       0.68 %   Fixed   Nov-2011   Nov-2021
 
                                                                                       
BellSouth Telecommunications, Inc.
    100 %   Fort Lauderdale, FL   Warehouse/Distribution   Telecommunications   South     80,450       613       0.66 %   Fixed   Jun-2016   Jun-2021
 
                                                                                       
Childtime Childcare, Inc.
    34 %   Alhambra, CA   Other   Healthcare, Education and Childcare   West     2,262       58       0.06 %   CPI   Jan-2016   Jan-2041
Childtime Childcare, Inc.
    34 %   Tustin, CA   Other   Healthcare, Education and Childcare   West     2,264       57       0.06 %   CPI   Jan-2016   Jan-2041

 

25


 

W. P. CAREY & CO. LLC
Detailed Property Summary
September 30, 2010
                                                                                         
                                                    Annualized Rent     Percentage of Total                    
Tenant/Lease Guarantor   Percent Ownership     Property Location   Property Type   Tenant Industry   Region   Square Footage(e)     (in thousands)     Rent(e)     Increase Factor     Lease Expiration     Maximum Term  
Childtime Childcare, Inc.
    34 %   Canton, MI   Other   Healthcare, Education and Childcare   Midwest     2,311       52       0.06 %   CPI   Jan-2016   Jan-2041
Childtime Childcare, Inc.
    34 %   Chino, CA   Other   Healthcare, Education and Childcare   West     2,166       50       0.05 %   CPI   Jan-2016   Jan-2041
Childtime Childcare, Inc.
    34 %   Carrollton, TX   Other   Healthcare, Education and Childcare   South     2,438       50       0.05 %   CPI   Jan-2016   Jan-2041
Childtime Childcare, Inc.
    34 %   Duncanville, TX   Other   Healthcare, Education and Childcare   South     2,438       50       0.05 %   CPI   Jan-2016   Jan-2041
Childtime Childcare, Inc.
    34 %   Lewisville, TX   Other   Healthcare, Education and Childcare   South     2,440       50       0.05 %   CPI   Jan-2016   Jan-2041
Childtime Childcare, Inc.
    34 %   Garden Grove, CA   Other   Healthcare, Education and Childcare   West     2,848       49       0.05 %   CPI   Jan-2016   Jan-2041
Childtime Childcare, Inc.
    34 %   Tucson, AZ   Other   Healthcare, Education and Childcare   West     2,165       40       0.04 %   CPI   Jan-2016   Jan-2041
Childtime Childcare, Inc.
    34 %   Chandler, AZ   Other   Healthcare, Education and Childcare   West     2,026       38       0.04 %   CPI   Jan-2016   Jan-2041
Childtime Childcare, Inc.
    34 %   Westland, MI   Other   Healthcare, Education and Childcare   Midwest     2,787       38       0.04 %   CPI   Jan-2016   Jan-2041
Childtime Childcare, Inc.
    34 %   Westland, MI   Other   Healthcare, Education and Childcare   Midwest     2,472       29       0.03 %   CPI   Jan-2016   Jan-2041
 
                                                                                 
Childtime Childcare, Inc. Total
                                            28,617       561       0.61 %                        
 
                                                                                       
United Stationers Supply Company
    100 %   San Antonio, TX   Warehouse/Distribution   Forest Products and Paper   South     63,098       252       0.27 %   CPI   Mar-2014   Mar-2017
United Stationers Supply Company
    100 %   New Orleans, LA   Warehouse/Distribution   Forest Products and Paper   South     59,560       238       0.26 %   CPI   Sep-2012   Sep-2012
 
                                                                                 
United Stationers Supply Company Total
                                            122,658       490       0.53 %                        
 
                                                                                       
Alstom Power
    100 %   Erlanger, KY   Warehouse/Distribution   Business and Commercial Services   East     197,400       485       0.52 %   Fixed   Jun-2017   Jun-2020
 
                                                                                       
Jada Toys, Inc.
    100 %   City of Industry, CA   Industrial   Consumer Non-durable Goods   West     92,595       485       0.52 %   Fixed   Apr-2012   Apr-2017
 
                                                                                       
Petrocon Engineering, Inc.
    100 %   Beaumont, TX   Office   Business and Commercial Services   South     34,300       317       0.34 %   Fixed   Dec-2011   Dec-2014
Petrocon Engineering, Inc.
    100 %   Beaumont, TX   Office   Business and Commercial Services   South     8,580       79       0.09 %   Fixed   Dec-2011   Dec-2014
 
                                                                                 
Petrocon Engineering, Inc. Total
                                            42,880       396       0.43 %                        
 
                                                                                       
Kmart Corporation
    100 %   Drayton Plains, MI   Retail   Retail Trade   Midwest     103,018       210       0.23 %   None   Mar-2016   Mar-2026
Kmart Corporation
    100 %   Citrus Heights, CA   Retail   Retail Trade   West     89,760       180       0.19 %   None   May-2016   May-2026
 
                                                                                 
Kmart Corporation Total
                                            192,778       390       0.42 %                        
 
                                                                                       
Pioneer Credit Recovery, Inc.
    100 %   Moorestown, NJ   Office   Business and Commercial Services   East     30,000       390       0.42 %   Fixed   Apr-2012   Apr-2018
 
                                                                                       
Faurecia Exhaust Systems
    100 %   Toledo, OH   Office   Automobile   Midwest     61,000       387       0.42 %   CPI   Nov-2022   Nov-2022
 
                                                                                       
Wal-Mart Stores, Inc.
    100 %   Greenfield, IN   Warehouse/Distribution   Retail Trade   Midwest     82,620       331       0.36 %   None   Jan-2020   Jan-2025
 
                                                                                       
S&ME, Inc.
    100 %   Raleigh, NC   Office   Business and Commercial Services   East     27,770       328       0.35 %   Fixed   Jul-2016   Jul-2026
 
                                                                                       
3E Trading LLC(c)
    100 %   West Mifflin, PA   Retail   Consumer Non-durable Goods   East     121,053       303       0.33 %   None   MTM   MTM
 
                                                                                       
Tubular Metal Systems
    100 %   Pinconning, MI   Industrial   Automobile   Midwest     220,588       298       0.32 %   CPI   Jul-2013   Dec-2022
 
                                                                                       
Qwest Communications, Inc.
    100 %   Scottsdale, AZ   Industrial   Telecommunications   West     2,900       178       0.19 %   Fixed   Feb-2012   Feb-2017
Qwest Communications, Inc.
    100 %   Scottsdale, AZ   Industrial   Telecommunications   West     1,560       96       0.10 %   Fixed   Feb-2012   Feb-2017
 
                                                                                 
Qwest Communications, Inc. Total
                                            4,460       274       0.30 %                        
 
                                                                                       
Penberthy, Inc.
    100 %   Prophetstown, IL   Industrial   Mining, Metals, and Primary Metal Industries   Midwest     161,878       269       0.29 %   CPI   Apr-2011   Apr-2026
 
                                                                                       
Deloro Satellite Company, Inc.
    100 %   Goshen, IN   Industrial   Mining, Metals, and Primary Metal Industries   Midwest     52,000       260       0.28 %   Fixed   Feb-2018   Feb-2023
 
                                                                                       
Fairpoint Communications, Inc.
    100 %   Milton, VT   Industrial   Telecommunications   East     30,624       221       0.24 %   Fixed   Feb-2013   Feb-2013
 
                                                                                       
Multi-Tenant Building
    100 %   Broomfield, CO   Office   Various   West     42,349       182       0.20 %   Various   Various   Various
 
                                                                                       
Lincoln Technical Institute, Inc.
    100 %   Moorestown, NJ   Office   Healthcare, Education and Childcare   East     71,134       203           Fixed   Apr-2025   Apr-2025
 
                                                                                       
Continental Airlines, Inc.
    100 %   Houston, TX   Warehouse/Distribution   Transportation - Personal   South     25,125       207       0.22 %   Fixed   Jul-2013   Jul-2013
 
                                                                                       
Xerox Corporation
    100 %   Hot Springs, AR   Retail   Machinery   South     36,850       190       0.21 %   Fixed   Mar-2014   Mar-2017
 
                                                                                       
Candle Lamp Company, LLC
    100 %   Memphis, TN   Warehouse/Distribution   Consumer Non-durable Goods   South     75,000       188       0.20 %   CPI   Mar-2014   Mar-2014
 
                                                                                       
Winn-Dixie Stores, Inc.
    100 %   Brewton, AL   Retail   Grocery   South     30,625       134       0.14 %   None   Oct-2010   Oct-2030
 
                                                                                       
Golder Associates Inc.
    100 %   Houston, TX   Office   Business and Commercial Services   South     8,066       75       0.08 %   Fixed   Oct-2010   Oct-2020
Golder Associates Inc.
    100 %   Houston, TX   Office   Business and Commercial Services   South     3,330       32       0.03 %   Fixed   Oct-2010   Oct-2020
 
                                                                                 
Golder Associates Inc. Total
                                            11,396       107       0.12 %                        
 
                                                                                       
Kenyon International Emergency Services
    100 %   Houston, TX   Warehouse/Distribution   Healthcare, Education and Childcare   South     17,725       96       0.10 %   None   Oct-2014   Oct-2019
 
                                                                                       
Raytheon Company
    100 %   Webster, TX   Industrial   Business and Commercial Services   South     9,138       89       0.10 %   Fixed   Jul-2011   Jul-2025
 
                                                                                       
Olmsted Kirk Paper Co.
    100 %   Beaumont, TX   Office   Forest Products and Paper   South     5,760       47       0.05 %   Fixed   Dec-2017   Dec-2022
 
                                                                                       
RGIS, LLC
    100 %   Bloomingdale, IL   Office   Business and Commercial Services   Midwest     2,550       45       0.05 %   Fixed   Nov-2011   Nov-2011
 
                                                                                       
SBH Holdings, LLC
    100 %   Houston, TX   Office   Healthcare, Education and Childcare   South     5,632       44       0.05 %   Fixed   Aug-2013   Aug-2016
 
                                                                                       
Cypress Creek Partners, LLC
    100 %   Little Rock, AR   Retail   Grocery   South     21,932       35       0.04 %   None   Mar-2017   Mar-2022
 
                                                                                       
Jerry Prater Trucking Incorporated
    100 %   Salisbury, NC   Industrial   Transportation - Cargo   East     13,284       28       0.03 %   Fixed   Sep-2011   Sep-2012

 

26


 

W. P. CAREY & CO. LLC
Detailed Property Summary
September 30, 2010
                                                                                         
                                                    Annualized Rent     Percentage of Total                    
Tenant/Lease Guarantor   Percent Ownership     Property Location   Property Type   Tenant Industry   Region   Square Footage(e)     (in thousands)     Rent(e)     Increase Factor     Lease Expiration     Maximum Term  
Pittsburgh Institute of Aeronautics (c)
    100 %   West Mifflin, PA   Retail   Transportation - Personal   East     1       20       0.02 %   None   MTM   MTM
 
                                                                                       
Florida Central Railroad Company
    100 %   Apopka, FL   Industrial   Transportation - Cargo   South     5,292       15       0.02 %   None   Mar-2020   Mar-2020
 
                                                                                       
Classic Cuisines Catering
    100 %   Bloomingdale, IL   Office   Hotels and Gaming   Midwest     1,000       10       0.01 %   None   Apr-2011   Apr-2011
 
                                                                                       
Action Buys Cars, Inc. (c)
    100 %   Montgomery, AL   Retail   Retail Trade   South     1       10       0.01 %   None   MTM   MTM
 
                                                                                       
Moran Foods, Inc.
    100 %   Montgomery, AL   Retail   Beverages, Food, and Tobacco   South     32,690                 None   Sep-2017   Sep-2037
 
                                                                                       
Common Area Space
    100 %   Bloomingdale, IL   Office   N/A   Midwest     14,084             0.00 %   None   Nov-2010   Nov-2010
 
                                                                                       
Vacant
    100 %   Charlotte, NC   Industrial   N/A   East     437,500                 N/A   N/A   N/A
Vacant
    100 %   Salisbury, NC   Warehouse/Distribution   N/A   East     287,000                 N/A   N/A   N/A
Vacant
    100 %   Jacksonville, FL   Warehouse/Distribution   N/A   South     240,000                 N/A   N/A   N/A
Vacant
    100 %   Bridgeton, MO   Office   N/A   Midwest     78,080                 N/A   N/A   N/A
Vacant
    100 %   Broomfield, CO   Office   N/A   West     59,436                 N/A   N/A   N/A
Vacant
    100 %   Bloomingdale, IL   Office   N/A   Midwest     38,366                 N/A   N/A   N/A
Vacant
    95 %   Tours, France   Office   N/A   Europe     36,011                 N/A   N/A   N/A
Vacant
    100 %   Houston, TX   Office   N/A   South     32,613                 N/A   N/A   N/A
Vacant
    100 %   Houston, TX   Warehouse/Distribution   N/A   South     32,320                 N/A   N/A   N/A
Vacant
    100 %   Webster, TX   Industrial   N/A   South     23,214                 N/A   N/A   N/A
Vacant
    100 %   Salisbury, NC   Office   N/A   East     10,681                 N/A   N/A   N/A
Vacant
    75 %   Illkirch-Graffenstaden, France   Office   N/A   Europe     8,330                 N/A   N/A   N/A
 
                                                                                 
Vacant Total
                                            1,283,551                                      
 
                                                                                       
Grand Total (d)
                                            13,943,550     $ 92,682       100 %                        
 
                                                                                 
     
(a)   Rents reflect a conversion rate of 1.3612 EUR/USD as of September 30, 2010.
 
(b)   INSEE construction index, an index published quarterly by the French Government.
 
(c)   Tenant is occupying property on a month-to-month (MTM) basis.
 
(d)   Excludes 20 domestic self-storage properties in our Carey Storage subsidiary, totaling approximately 1.4 million square feet.
 
(e)   Numbers may not add due to rounding.

 

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