Delaware | 001-13779 | 13-3912578 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
50 Rockefeller Plaza, New York, NY | 10020 | |
(Address of Principal Executive Offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ITEM 2.02 Results of Operations and Financial Condition | ||||||||
ITEM 9.01 Financial Statements and Exhibits | ||||||||
SIGNATURES | ||||||||
EX-99.1 |
Exhibit 99.1
|
Earnings release of the registrant for the quarter ended September 30, 2011. |
W. P. Carey & Co. LLC |
||||
Date: November 8, 2011 | By: | /s/ Mark J. DeCesaris | ||
Mark J. DeCesaris | ||||
Chief Financial Officer | ||||
COMPANY CONTACT:
|
PRESS CONTACT: | |
Cheryl Perry
|
Guy Lawrence | |
W. P. Carey & Co. LLC
|
Ross & Lawrence | |
212-492-8995
|
212-308-3333 | |
cperry@wpcarey.com
|
gblawrence@rosslawpr.com |
| Funds from operationsas adjusted (AFFO) for the third quarter of 2011 increased compared to the third quarter of 2010, to $41.6 million or $1.03 per diluted share from $27.6 million or $0.69 per diluted share, respectively. AFFO for the nine months ended September 30, 2011 increased to $153.6 million or $3.80 per diluted share compared to $94.6 million or $2.38 per diluted share for the prior year period. |
| Cash flow from operating activities for the nine months ended September 30, 2011 increased to $62.7 million compared to $52.3 million for the prior year period, while adjusted cash flow from operating activities increased to $74.5 million in the current year period compared to $64.9 million in the same period last year. |
| Total revenues net of reimbursed expenses for the third quarter of 2011 increased to $63.7 million from $42.8 million for the third quarter of 2010. Total revenues net of reimbursed expenses for the nine months ended September 30, 2011 increased to $223.8 million from $144.8 million for the prior year period. Reimbursed expenses are excluded from total revenues because they have no impact on net income. |
| Net Income for the third quarter of 2011 was $25.2 million, compared to $16.3 million for the same period in 2010. For the nine months ended September 30, 2011, net income was $130.0 million, compared to $54.2 million for the comparable period in 2010. |
| We received approximately $6.1 million in cash distributions from our equity ownership in the CPA® REITs for the quarter ended September 30, 2011 and $27.0 million for the nine months ended September 30, 2011. |
| Further information concerning AFFO and adjusted cash flow from operating activitiesnon-GAAP supplemental performance metricsis presented in the accompanying tables. |
| On April 7, 2011, CPA®:17 Globals follow-on offering was declared effective by the SEC, and its initial public offering was terminated. We have raised more than $1.5 billion on behalf of CPA®:17 Global since beginning fundraising in December 2007. The follow-on offering is for up to an additional $1 billion of CPA®:17 Globals common stock. From the beginning of the follow-on offering through September 30, 2011, we have raised $279.3 million. |
| Investment volume for CPA®:17 Global in the third quarter of 2011 was approximately $466 million. |
| Third quarter transactions included acquisitions of ten self-storage properties totaling $54 million, an $8 million sale-leaseback of an industrial facility in Clarksville, Tennessee and a 292 million ($396 million) acquisition of units in a fund that owns 20 stores leased to Metro Cash & Carry Italia S.p.A. (Metro Italy), a subsidiary of Metro AG, the worlds fourth largest retailer. Metro AG has guaranteed Metro Italys obligations under the leases. |
| In the fourth quarter of 2011, we obtained $24 million of long-term mortgage financing on the iconic Frank Gehry-designed Binoculars Building in Venice, California, which was leased to Google Inc. in February 2011. Google is combining this building with two adjacent buildings to create a large and unique campus environment. |
WPC 9/30/2011 Earnings Release 8-K 1
| As of September 30, 2011, the occupancy rate of W. P. Careys 14 million square foot owned portfolio was approximately 91%. |
| W. P. Carey is the advisor to the CPA® REITs and CWI, which had total assets of $9.7 billion as of September 30, 2011. |
| The W. P. Carey Groups assets under ownership and management total approximately $11.8 billion with an occupancy rate of 97% as of September 30, 2011. |
| The W. P. Carey Board of Directors raised the quarterly cash distribution to $0.56 per share for the third quarter of 2011, equating to an annual rate of $2.24 per share. The distributionour 42nd consecutive quarterly increasewas paid on October 14, 2011 to shareholders of record as of September 30, 2011. |
WPC 9/30/2011 Earnings Release 8-K 2
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Revenues |
||||||||||||||||
Asset management revenue |
$ | 14,840 | $ | 19,219 | $ | 51,279 | $ | 57,119 | ||||||||
Structuring revenue |
21,221 | 708 | 42,901 | 20,644 | ||||||||||||
Incentive, termination and subordinated disposition revenue |
| | 52,515 | | ||||||||||||
Wholesaling revenue |
2,586 | 2,906 | 8,788 | 8,189 | ||||||||||||
Reimbursed costs from affiliates |
14,707 | 15,256 | 49,485 | 44,696 | ||||||||||||
Lease revenues |
18,609 | 15,356 | 50,846 | 45,586 | ||||||||||||
Other real estate income |
6,409 | 4,656 | 17,426 | 13,228 | ||||||||||||
78,372 | 58,101 | 273,240 | 189,462 | |||||||||||||
Operating Expenses |
||||||||||||||||
General and administrative |
(25,187 | ) | (15,480 | ) | (71,095 | ) | (52,174 | ) | ||||||||
Reimbursable costs |
(14,707 | ) | (15,256 | ) | (49,485 | ) | (44,696 | ) | ||||||||
Depreciation and amortization |
(7,180 | ) | (5,796 | ) | (19,126 | ) | (17,231 | ) | ||||||||
Property expenses |
(3,672 | ) | (3,152 | ) | (9,827 | ) | (7,631 | ) | ||||||||
Other real estate expenses |
(2,725 | ) | (1,987 | ) | (8,224 | ) | (5,575 | ) | ||||||||
Impairment charge |
(4,934 | ) | | (4,934 | ) | | ||||||||||
(58,405 | ) | (41,671 | ) | (162,691 | ) | (127,307 | ) | |||||||||
Other Income and Expenses |
||||||||||||||||
Other interest income |
323 | 329 | 1,558 | 938 | ||||||||||||
Income from equity investments in real estate and the REITs |
16,068 | 6,066 | 37,356 | 22,846 | ||||||||||||
Gain on change in control of interests |
| | 27,859 | | ||||||||||||
Other income and (expenses) |
(296 | ) | 1,190 | 4,943 | 580 | |||||||||||
Interest expense |
(5,989 | ) | (4,169 | ) | (15,660 | ) | (11,391 | ) | ||||||||
10,106 | 3,416 | 56,056 | 12,973 | |||||||||||||
Income from continuing operations before income taxes |
30,073 | 19,846 | 166,605 | 75,128 | ||||||||||||
Provision for income taxes |
(5,931 | ) | (3,377 | ) | (38,541 | ) | (14,240 | ) | ||||||||
Income from continuing operations |
24,142 | 16,469 | 128,064 | 60,888 | ||||||||||||
Discontinued Operations |
||||||||||||||||
Income from operations of discontinued properties |
504 | 383 | 639 | 1,664 | ||||||||||||
Gain on deconsolidation of a subsidiary |
1,008 | | 1,008 | | ||||||||||||
(Loss) gain on sale of real estate |
(396 | ) | | 264 | 460 | |||||||||||
Impairment charges |
| (481 | ) | (41 | ) | (8,618 | ) | |||||||||
Income (loss) from discontinued operations |
1,116 | (98 | ) | 1,870 | (6,494 | ) | ||||||||||
Net Income |
25,258 | 16,371 | 129,934 | 54,394 | ||||||||||||
Add: Net loss attributable to noncontrolling interests |
581 | 81 | 1,295 | 495 | ||||||||||||
Less: Net income attributable to redeemable noncontrolling interest |
(637 | ) | (106 | ) | (1,241 | ) | (698 | ) | ||||||||
Net Income Attributable to W. P. Carey Members |
$ | 25,202 | $ | 16,346 | $ | 129,988 | $ | 54,191 | ||||||||
Basic Earnings Per Share |
||||||||||||||||
Income from continuing operations attributable to W. P. Carey members |
$ | 0.59 | $ | 0.41 | $ | 3.17 | $ | 1.54 | ||||||||
Income
(loss) from discontinued operations attributable to W. P. Carey members |
0.03 | | 0.05 | (0.16 | ) | |||||||||||
Net income attributable to W. P. Carey members |
$ | 0.62 | $ | 0.41 | $ | 3.22 | $ | 1.38 | ||||||||
Diluted Earnings Per Share |
||||||||||||||||
Income from continuing operations attributable to W. P. Carey members |
$ | 0.59 | $ | 0.41 | $ | 3.14 | $ | 1.53 | ||||||||
Income
(loss) from discontinued operations attributable to W. P. Carey members |
0.03 | | 0.05 | (0.17 | ) | |||||||||||
Net income attributable to W. P. Carey members |
$ | 0.62 | $ | 0.41 | $ | 3.19 | $ | 1.36 | ||||||||
Weighted Average Shares Outstanding |
||||||||||||||||
Basic |
39,861,064 | 39,180,719 | 39,794,506 | 39,161,086 | ||||||||||||
Diluted |
40,404,520 | 39,717,931 | 40,424,316 | 39,774,122 | ||||||||||||
Amounts Attributable to W. P. Carey Members |
||||||||||||||||
Income from continuing operations, net of tax |
$ | 24,086 | $ | 16,444 | $ | 128,118 | $ | 60,685 | ||||||||
Income (loss) from discontinued operations, net of tax |
1,116 | (98 | ) | 1,870 | (6,494 | ) | ||||||||||
Net income |
$ | 25,202 | $ | 16,346 | $ | 129,988 | $ | 54,191 | ||||||||
Distributions Declared Per Share |
$ | 0.560 | $ | 0.508 | $ | 1.622 | $ | 1.518 | ||||||||
WPC 9/30/2011 Earnings Release 8-K 3
Nine Months Ended September 30, | ||||||||
2011 | 2010 | |||||||
Cash Flows Operating Activities |
||||||||
Net income |
$ | 129,934 | $ | 54,394 | ||||
Adjustments to net income: |
||||||||
Depreciation and amortization, including intangible assets and deferred financing costs |
20,160 | 18,496 | ||||||
Income from equity investments in real estate and the REITs in excess of distributions received |
(835 | ) | (5,373 | ) | ||||
Straight-line rent and financing lease adjustments |
(2,039 | ) | 144 | |||||
Amortization of deferred revenue |
(3,932 | ) | | |||||
Gain on deconsolidation of a subsidiary |
(1,008 | ) | | |||||
Gain on sale of real estate |
(264 | ) | (460 | ) | ||||
Unrealized (gain) loss on foreign currency transactions and others |
(79 | ) | 143 | |||||
Realized (gain) loss on foreign currency transactions and others |
(1,134 | ) | 176 | |||||
Allocation of loss to profit-sharing interest |
| (781 | ) | |||||
Management and disposition income received in shares of affiliates |
(62,493 | ) | (26,262 | ) | ||||
Gain on conversion of shares |
(3,834 | ) | | |||||
Gain on change in control of interests |
(27,859 | ) | | |||||
Impairment charges |
4,975 | 8,618 | ||||||
Stock-based compensation expense |
13,026 | 6,695 | ||||||
Deferred acquisition revenue received |
18,128 | 19,248 | ||||||
Increase in structuring revenue receivable |
(17,732 | ) | (9,900 | ) | ||||
Increase (decrease) in income taxes, net |
5,907 | (9,461 | ) | |||||
Net changes in other operating assets and liabilities |
(8,269 | ) | (3,409 | ) | ||||
Net cash provided by operating activities |
62,652 | 52,268 | ||||||
Cash Flows Investing Activities |
||||||||
Distributions received from equity investments in real estate and the REITs in excess of equity income |
13,870 | 9,964 | ||||||
Capital contributions to equity investments |
(2,297 | ) | | |||||
Purchase of interests in CPA®:16 Global |
(121,315 | ) | | |||||
Purchases of real estate and equity investments in real estate |
(24,323 | ) | (93,059 | ) | ||||
Value added taxes (VAT) paid in connection with acquisition of real estate |
| (4,222 | ) | |||||
VAT refunded in connection with acquisitions of real estate |
5,035 | | ||||||
Capital expenditures |
(6,731 | ) | (2,008 | ) | ||||
Cash acquired on acquisition of subsidiaries |
57 | | ||||||
Proceeds from sale of real estate |
10,998 | 14,591 | ||||||
Proceeds from sale of securities |
777 | | ||||||
Funding of short-term loans to affiliates |
(96,000 | ) | | |||||
Proceeds from repayment of short-term loans to affiliates |
95,000 | | ||||||
Funds placed in escrow |
(5,282 | ) | | |||||
Funds released from escrow |
2,326 | 36,132 | ||||||
Net cash used in investing activities |
(127,885 | ) | (38,602 | ) | ||||
Cash Flows Financing Activities |
||||||||
Distributions paid |
(63,060 | ) | (72,625 | ) | ||||
Contributions from noncontrolling interests |
2,341 | 11,403 | ||||||
Distributions to noncontrolling interests |
(5,310 | ) | (2,022 | ) | ||||
Contributions from profit-sharing interest |
| 3,694 | ||||||
Distributions to profit-sharing interest |
| (693 | ) | |||||
Purchase of noncontrolling interest |
(7,502 | ) | | |||||
Scheduled payments of mortgage principal |
(22,893 | ) | (12,218 | ) | ||||
Proceeds from mortgage financing |
20,848 | 52,816 | ||||||
Proceeds from lines of credit |
251,410 | 83,250 | ||||||
Repayments of lines of credit |
(140,000 | ) | (52,500 | ) | ||||
Payment of financing costs |
(1,562 | ) | (1,083 | ) | ||||
Proceeds from issuance of shares |
1,034 | 3,537 | ||||||
Windfall tax benefit associated with stock-based compensation awards |
2,051 | 1,226 | ||||||
Net cash provided by financing activities |
37,357 | 14,785 | ||||||
Change in Cash and Cash Equivalents During the Period |
||||||||
Effect of exchange rate changes on cash |
278 | (651 | ) | |||||
Net (decrease) increase in cash and cash equivalents |
(27,598 | ) | 27,800 | |||||
Cash and cash equivalents, beginning of period |
64,693 | 18,450 | ||||||
Cash and cash equivalents, end of period |
$ | 37,095 | $ | 46,250 | ||||
WPC 9/30/2011 Earnings Release 8-K 4
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
EBITDA (a) |
||||||||||||||||
Investment management |
$ | 21,631 | $ | 10,295 | $ | 101,902 | $ | 42,324 | ||||||||
Real estate ownership |
23,017 | 19,838 | 102,810 | 56,431 | ||||||||||||
Total |
$ | 44,648 | $ | 30,133 | $ | 204,712 | $ | 98,755 | ||||||||
AFFO (a) |
||||||||||||||||
Investment management |
$ | 18,546 | $ | 7,229 | $ | 87,353 | $ | 32,045 | ||||||||
Real estate ownership |
23,004 | 20,378 | 66,291 | 62,548 | ||||||||||||
Total |
$ | 41,550 | $ | 27,607 | $ | 153,644 | $ | 94,593 | ||||||||
EBITDA Per Share (Diluted) (a) |
||||||||||||||||
Investment management |
$ | 0.54 | $ | 0.26 | $ | 2.52 | $ | 1.06 | ||||||||
Real estate ownership |
0.57 | 0.50 | 2.54 | 1.42 | ||||||||||||
Total |
$ | 1.11 | $ | 0.76 | $ | 5.06 | $ | 2.48 | ||||||||
AFFO Per Share (Diluted) (a) |
||||||||||||||||
Investment management |
$ | 0.46 | $ | 0.18 | $ | 2.16 | $ | 0.81 | ||||||||
Real estate ownership |
0.57 | 0.51 | 1.64 | 1.57 | ||||||||||||
Total |
$ | 1.03 | $ | 0.69 | $ | 3.80 | $ | 2.38 | ||||||||
Adjusted Cash Flow From Operating Activities |
||||||||||||||||
Adjusted cash flow |
$ | 74,478 | $ | 64,933 | ||||||||||||
Adjusted cash flow per share (diluted) |
$ | 1.84 | $ | 1.63 | ||||||||||||
Distributions declared per share |
$ | 1.622 | $ | 1.518 | ||||||||||||
Payout ratio (distributions per share/adjusted cash flow per share) |
88 | % | 93 | % | ||||||||||||
(a) | Effective January 1, 2011, we include our equity investments in the REITs in our real estate ownership segment. The equity income (loss) from the REITs that is now included in our real estate ownership segment represents our proportionate share of the revenue less expenses of the properties held by the REITs. This treatment is consistent with that of our directly-owned properties. Results for the three and nine months ended September 30, 2010 have been adjusted to reflect this reclassification. |
WPC 9/30/2011 Earnings Release 8-K 5
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Investment Management |
||||||||||||||||
Net income from investment management
attributable to W. P. Carey members (a) |
$ | 15,737 | $ | 6,094 | $ | 60,903 | $ | 25,842 | ||||||||
Adjustments: |
||||||||||||||||
Provision for income taxes |
5,075 | 3,045 | 38,511 | 12,993 | ||||||||||||
Depreciation and amortization |
819 | 1,156 | 2,488 | 3,489 | ||||||||||||
EBITDA investment management |
$ | 21,631 | $ | 10,295 | $ | 101,902 | $ | 42,324 | ||||||||
EBITDA per share (diluted) |
$ | 0.54 | $ | 0.26 | $ | 2.52 | $ | 1.06 | ||||||||
Real Estate Ownership |
||||||||||||||||
Net income
from real estate ownership attributable to W. P. Carey members (a) |
$ | 9,465 | $ | 10,252 | $ | 69,085 | $ | 28,349 | ||||||||
Adjustments: |
||||||||||||||||
Interest expense |
5,989 | 4,169 | 15,660 | 11,391 | ||||||||||||
Provision for income taxes |
856 | 332 | 30 | 1,247 | ||||||||||||
Depreciation and amortization |
6,361 | 4,640 | 16,638 | 13,742 | ||||||||||||
Reconciling items attributable to discontinued
operations |
346 | 445 | 1,397 | 1,702 | ||||||||||||
EBITDA real estate ownership |
$ | 23,017 | $ | 19,838 | $ | 102,810 | $ | 56,431 | ||||||||
EBITDA per share (diluted) |
$ | 0.57 | $ | 0.50 | $ | 2.54 | $ | 1.42 | ||||||||
Total Company |
||||||||||||||||
EBITDA |
$ | 44,648 | $ | 30,133 | $ | 204,712 | $ | 98,755 | ||||||||
EBITDA per share (diluted) |
$ | 1.11 | $ | 0.76 | $ | 5.06 | $ | 2.48 | ||||||||
Diluted weighted average shares outstanding |
40,404,520 | 39,717,931 | 40,424,316 | 39,774,122 | ||||||||||||
(a) | Effective January 1, 2011, we include our equity investments in the REITs in our real estate ownership segment. The equity income (loss) from the REITs that is now included in our real estate ownership segment represents our proportionate share of the revenue less expenses of the properties held by the REITs. This treatment is consistent with that of our directly-owned properties. Results for the three and nine months ended September 30, 2010 have been adjusted to reflect this reclassification. |
WPC 9/30/2011 Earnings Release 8-K 6
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Investment Management |
||||||||||||||||
Net Income from investment management attributable to
W. P. Carey members
(a) |
$ | 15,737 | $ | 6,094 | $ | 60,903 | $ | 25,842 | ||||||||
FFO as defined by NAREIT |
15,737 | 6,094 | 60,903 | 25,842 | ||||||||||||
Adjustments: |
||||||||||||||||
Amortization and other non-cash charges |
4,953 | 1,135 | 30,009 | 6,203 | ||||||||||||
Proportionate share of adjustments to equity in net
income of partially-owned entities to arrive at
AFFO: |
||||||||||||||||
AFFO adjustments to equity |
||||||||||||||||
earnings from equity investments |
(2,144 | ) | | (3,559 | ) | | ||||||||||
Total adjustments |
2,809 | 1,135 | 26,450 | 6,203 | ||||||||||||
AFFO Investment Management |
$ | 18,546 | $ | 7,229 | $ | 87,353 | $ | 32,045 | ||||||||
Real Estate Ownership |
||||||||||||||||
Net Income
from real estate ownership attributable to W. P. Carey members (a) |
$ | 9,465 | $ | 10,252 | $ | 69,085 | $ | 28,349 | ||||||||
Adjustments: |
||||||||||||||||
Depreciation and amortization of real property |
6,194 | 4,757 | 16,909 | 14,457 | ||||||||||||
Loss (gain) on sale of real estate, net |
396 | | (264 | ) | (460 | ) | ||||||||||
Proportionate share of adjustments to equity in net income
of partially-owned entities to arrive at FFO: |
||||||||||||||||
Depreciation and amortization of real property |
1,173 | 463 | 4,049 | 4,927 | ||||||||||||
Loss (gain) on sale of real estate, net |
| | 34 | (38 | ) | |||||||||||
Proportionate share of adjustments for noncontrolling
interests to arrive at FFO |
(1,157 | ) | (193 | ) | (1,476 | ) | (532 | ) | ||||||||
Total adjustments |
6,606 | 5,027 | 19,252 | 18,354 | ||||||||||||
FFO as defined by NAREIT |
16,071 | 15,279 | 88,337 | 46,703 | ||||||||||||
Adjustments: |
||||||||||||||||
Gain on change in control of interests (b) |
| | (27,859 | ) | | |||||||||||
Gain on deconsolidation of a subsidiary |
(1,008 | ) | | (1,008 | ) | | ||||||||||
Other depreciation, amortization and non-cash charges |
303 | (1,230 | ) | (2,498 | ) | (920 | ) | |||||||||
Straight-line and other rent adjustments |
(1,014 | ) | 148 | (2,451 | ) | 167 | ||||||||||
Impairment charges |
4,934 | 481 | 4,975 | 8,618 | ||||||||||||
Proportionate share of adjustments to equity in net income
of partially-owned entities to arrive at AFFO: |
||||||||||||||||
Other depreciation, amortization and other non-cash
charges |
| 1,728 | | 25 | ||||||||||||
Straight-line and other rent adjustments |
(463 | ) | (539 | ) | (1,227 | ) | (1,728 | ) | ||||||||
Impairment charges |
| 1,394 | 1,090 | 1,394 | ||||||||||||
AFFO adjustments to equity earnings from equity
investments |
4,122 | 2,995 | 6,714 | 8,211 | ||||||||||||
Proportionate share of adjustments for noncontrolling
interests to arrive at AFFO |
59 | 122 | 218 | 78 | ||||||||||||
Total adjustments |
6,933 | 5,099 | (22,046 | ) | 15,845 | |||||||||||
AFFO Real Estate Ownership |
$ | 23,004 | $ | 20,378 | $ | 66,291 | $ | 62,548 | ||||||||
Total Company |
||||||||||||||||
FFO as defined by NAREIT |
$ | 31,808 | $ | 21,373 | $ | 149,240 | $ | 72,545 | ||||||||
FFO
as defined by NAREIT per share (diluted) |
$ | 0.79 | $ | 0.54 | $ | 3.69 | $ | 1.82 | ||||||||
AFFO |
$ | 41,550 | $ | 27,607 | $ | 153,644 | $ | 94,593 | ||||||||
AFFO per share (diluted) |
$ | 1.03 | $ | 0.69 | $ | 3.80 | $ | 2.38 | ||||||||
Diluted weighted average shares outstanding |
40,404,520 | 39,717,931 | 40,424,316 | 39,774,122 | ||||||||||||
(a) | Effective January 1, 2011, we include our equity investments in the REITs in our real estate ownership segment. The equity income (loss) from the REITs that is now included in our real estate ownership segment represents our proportionate share of the revenue less expenses of the properties held by the REITs. This treatment is consistent with that of our directly-owned properties. Results for the three and nine months ended September 30, 2011 have been adjusted to reflect this reclassification. | |
(b) | Represents gain recognized on the purchase of the remaining interests in two ventures from CPA®:14, which we had previously accounted for under the equity method. In connection with purchasing these properties, we recognized a net gain of $27.9 million during the nine months ended September 30, 2011 to adjust the carrying value of our existing interests in these ventures to their estimated fair values. |
Nine Months Ended September 30, | ||||||||
2011 | 2010 | |||||||
Cash flow provided by operating activities |
$ | 62,652 | $ | 52,268 | ||||
Adjustments: |
||||||||
Distributions received from equity investments in real estate in excess of equity income (a) |
10,187 | 6,046 | ||||||
Distributions paid to noncontrolling interests, net (b) |
(732 | ) | (213 | ) | ||||
Changes in working capital (c) |
14,079 | 6,832 | ||||||
CPA®:14/16 Merger revenue net of taxes (d) |
(11,708 | ) | | |||||
Adjusted cash flow from operating activities |
$ | 74,478 | $ | 64,933 | ||||
Adjusted cash flow per share (diluted) |
$ | 1.84 | $ | 1.63 | ||||
Distributions declared per share |
$ | 1.622 | $ | 1.518 | ||||
Payout ratio (distributions per share/adjusted cash flow per share) |
88 | % | 93 | % | ||||
Diluted weighted average shares outstanding |
40,424,316 | 39,774,122 | ||||||
(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 recognized. | |
(d) | Amounts represent termination and subordinated disposition revenue, net of a 45% tax provision, earned in connection with the CPA®:14/16 Merger. This revenue is generally earned in connection with events that provide liquidity or alternatives to the CPA® REIT shareholders. In determining cash flow generated from our core operations, we believe it is more appropriate to normalize cash flow for the impact of the net revenue earned in connection with the CPA®:14/16 Merger. |