Hisham A. Kader | |
Chief Financial Officer | |
TEL +1-212-492-1183 | |
FAX +1-212-492-8922 | |
hkader@wpcarey.com |
1. | We note your response to our prior comment 1 and are unclear how you concluded the measure of Property Level Contribution does not meet the definition of a non-GAAP measure in accordance with Item 10(e) of Regulation S-K. Although this measure is |
• | the Company is responsible for the adequacy and accuracy of the disclosure in the filing; |
• | Staff comments or changes to disclosure in response to Staff comments do not foreclose the Commission from taking any action with respect to the filing; and |
• | the Company may not assert Staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States. |
Sincerely, | |
/s/ Hisham A. Kader | |
Hisham A. Kader | |
Chief Financial Officer |
cc: | Paul Marcotrigiano, Esq. W. P. Carey Inc. |
Years Ended December 31, | |||||||||||||||||||||||
2015 | 2014 | Change | 2014 | 2013 | Change | ||||||||||||||||||
Existing Net-Leased Properties | |||||||||||||||||||||||
Lease revenues | $ | 266,442 | $ | 281,132 | $ | (14,690 | ) | $ | 281,132 | $ | 279,765 | $ | 1,367 | ||||||||||
Property expenses | (3,228 | ) | (1,050 | ) | (2,178 | ) | (1,050 | ) | (2,038 | ) | 988 | ||||||||||||
Depreciation and amortization | (100,327 | ) | (105,895 | ) | 5,568 | (105,895 | ) | (106,276 | ) | 381 | |||||||||||||
Property level contribution | 162,887 | 174,187 | (11,300 | ) | 174,187 | 171,451 | 2,736 | ||||||||||||||||
Net-Leased Properties Acquired in the CPA®:16 Merger | |||||||||||||||||||||||
Lease revenues | 258,219 | 248,470 | 9,749 | 248,470 | — | 248,470 | |||||||||||||||||
Property expenses | (12,618 | ) | (5,802 | ) | (6,816 | ) | (5,802 | ) | — | (5,802 | ) | ||||||||||||
Depreciation and amortization | (99,913 | ) | (100,298 | ) | 385 | (100,298 | ) | — | (100,298 | ) | |||||||||||||
Property level contribution | 145,688 | 142,370 | 3,318 | 142,370 | — | 142,370 | |||||||||||||||||
Recently Acquired Net-Leased Properties | |||||||||||||||||||||||
Lease revenues | 117,073 | 30,263 | 86,810 | 30,263 | 6,455 | 23,808 | |||||||||||||||||
Property expenses | (6,738 | ) | (2,615 | ) | (4,123 | ) | (2,615 | ) | (260 | ) | (2,355 | ) | |||||||||||
Depreciation and amortization | (56,700 | ) | (14,584 | ) | (42,116 | ) | (14,584 | ) | (3,169 | ) | (11,415 | ) | |||||||||||
Property level contribution | 53,635 | 13,064 | 40,571 | 13,064 | 3,026 | 10,038 | |||||||||||||||||
Properties Sold or Held for Sale | |||||||||||||||||||||||
Lease revenues | 15,222 | 13,964 | 1,258 | 13,964 | 13,404 | 560 | |||||||||||||||||
Operating revenues | 327 | 491 | (164 | ) | 491 | 443 | 48 | ||||||||||||||||
Property expenses | (636 | ) | (4,015 | ) | 3,379 | (4,015 | ) | (3,154 | ) | (861 | ) | ||||||||||||
Depreciation and amortization | (15,102 | ) | (8,515 | ) | (6,587 | ) | (8,515 | ) | (7,906 | ) | (609 | ) | |||||||||||
Property level contribution | (189 | ) | 1,925 | (2,114 | ) | 1,925 | 2,787 | (862 | ) | ||||||||||||||
Operating Properties | |||||||||||||||||||||||
Revenues | 30,188 | 28,434 | 1,754 | 28,434 | 513 | 27,921 | |||||||||||||||||
Property expenses | (21,938 | ) | (20,609 | ) | (1,329 | ) | (20,609 | ) | (338 | ) | (20,271 | ) | |||||||||||
Depreciation and amortization | (4,194 | ) | (3,807 | ) | (387 | ) | (3,807 | ) | (98 | ) | (3,709 | ) | |||||||||||
Property level contribution | 4,056 | 4,018 | 38 | 4,018 | 77 | 3,941 | |||||||||||||||||
Property Level Contribution | 366,077 | 335,564 | 30,513 | 335,564 | 177,341 | 158,223 | |||||||||||||||||
Add: Lease termination income and other | 25,145 | 17,767 | 7,378 | 17,767 | 2,071 | 15,696 | |||||||||||||||||
Less other expenses: | |||||||||||||||||||||||
General and administrative | (47,676 | ) | (38,797 | ) | (8,879 | ) | (38,797 | ) | (18,993 | ) | (19,804 | ) | |||||||||||
Impairment charges | (29,906 | ) | (23,067 | ) | (6,839 | ) | (23,067 | ) | (4,741 | ) | (18,326 | ) | |||||||||||
Merger, property acquisition, and other expenses | 9,908 | (34,465 | ) | 44,373 | (34,465 | ) | (9,230 | ) | (25,235 | ) | |||||||||||||
Stock-based compensation expense | (7,873 | ) | (12,659 | ) | 4,786 | (12,659 | ) | (7,153 | ) | (5,506 | ) | ||||||||||||
Property management fees | (7,041 | ) | (3,634 | ) | (3,407 | ) | (3,634 | ) | (2,292 | ) | (1,342 | ) | |||||||||||
Other Income and Expenses | |||||||||||||||||||||||
Interest expense | (194,326 | ) | (178,122 | ) | (16,204 | ) | (178,122 | ) | (103,728 | ) | (74,394 | ) | |||||||||||
Equity in earnings of equity method investments in the Managed REITs and real estate | 52,972 | 44,116 | 8,856 | 44,116 | 52,731 | (8,615 | ) | ||||||||||||||||
Other income and (expenses) | 1,952 | (14,505 | ) | 16,457 | (14,505 | ) | 8,420 | (22,925 | ) | ||||||||||||||
Gain on change in control of interests | — | 105,947 | (105,947 | ) | 105,947 | — | 105,947 | ||||||||||||||||
(139,402 | ) | (42,564 | ) | (96,838 | ) | (42,564 | ) | (42,577 | ) | 13 | |||||||||||||
Income from continuing operations before income taxes | 169,232 | 198,145 | (28,913 | ) | 198,145 | 94,426 | 103,719 | ||||||||||||||||
(Provision for) benefit from income taxes | (17,948 | ) | 916 | (18,864 | ) | 916 | (4,703 | ) | 5,619 | ||||||||||||||
Income from continuing operations before gain on sale of real estate | 151,284 | 199,061 | (47,777 | ) | 199,061 | 89,723 | 109,338 | ||||||||||||||||
Income from discontinued operations, net of tax | — | 33,318 | (33,318 | ) | 33,318 | 38,180 | (4,862 | ) | |||||||||||||||
Gain (loss) on sale of real estate, net of tax | 6,487 | 1,581 | 4,906 | 1,581 | (332 | ) | 1,913 | ||||||||||||||||
Net Income from Real Estate Ownership | 157,771 | 233,960 | (76,189 | ) | 233,960 | 127,571 | 106,389 | ||||||||||||||||
Net income attributable to noncontrolling interests | (10,961 | ) | (5,573 | ) | (5,388 | ) | (5,573 | ) | (33,056 | ) | 27,483 | ||||||||||||
Net Income from Real Estate Ownership Attributable to W. P. Carey | $ | 146,810 | $ | 228,387 | $ | (81,577 | ) | $ | 228,387 | $ | 94,515 | $ | 133,872 |