Segment Reporting

6 Months Ended

Jun. 30, 2019

We evaluate our results from operations through our two major business segments: Real Estate and Investment Management. The following tables present a summary of comparative results and assets for these business segments (in thousands):

Real Estate



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Revenues
Lease revenues	$	269,802		$	168,367		$	532,741		$	337,799
Operating property revenues ^(a)	15,436			4,865			31,432			12,083
Lease termination income and other	6,304			680			9,574			1,622
	291,542			173,912			573,747			351,504

Operating Expenses
Depreciation and amortization	112,666			63,374			224,079			128,294
General and administrative	15,001			10,599			30,189			22,664
Reimbursable tenant costs	13,917			5,733			27,088			11,952
Operating property expenses	10,874			3,581			21,468			9,251
Property expenses, excluding reimbursable tenant costs	9,915			5,327			19,827			9,556
Stock-based compensation expense	3,482			1,990			6,282			6,296
Merger and other expenses	696			2,692			842			2,655
Impairment charges	—			—			—			4,790
	166,551			93,296			329,775			195,458
Other Income and Expenses
Interest expense	(59,719		)	(41,311		)	(121,032		)	(79,385		)
Other gains and (losses)	(1,362		)	9,630			(392		)	6,743
(Loss) gain on sale of real estate, net	(362		)	11,912			571			18,644
Equity in earnings of equity method investments in real estate	230			3,529			152			6,887
	(61,213		)	(16,240		)	(120,701		)	(47,111		)
Income before income taxes	63,778			64,376			123,271			108,935
(Provision for) benefit from income taxes	(3,019		)	(1,317		)	(9,178		)	2,216
Net Income from Real Estate	60,759			63,059			114,093			111,151
Net loss (income) attributable to noncontrolling interests	9			(3,743		)	83			(6,535		)
Net Income from Real Estate Attributable to W. P. Carey	$	60,768		$	59,316		$	114,176		$	104,616

__________

(a)

Operating property revenues from our hotels include (i) $0.9 million and $4.8 million for the three and six months ended June 30, 2018, respectively, generated from a hotel in Memphis, Tennessee, which was sold in April 2018, (ii) $4.1 million and $4.0 million for the three months ended June 30, 2019 and 2018, respectively, and $7.5 million and $7.2 million for the six months ended June 30, 2019 and 2018, respectively, generated from a hotel in Bloomington, Minnesota, and (iii) $3.7 million and $6.6 million for the three and six months ended June 30, 2019, respectively, generated from a hotel in Miami, Florida, which was acquired in the CPA:17 Merger and was classified as held for sale as of June 30, 2019 (Note 4).

Investment Management



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Revenues
Asset management revenue	$	9,790		$	17,268		$	19,522		$	34,253
Reimbursable costs from affiliates	3,821			5,537			7,689			10,841
Structuring and other advisory revenue	58			4,426			2,576			6,355
	13,669			27,231			29,787			51,449
Operating Expenses
General and administrative	4,728			5,843			10,825			12,361
Reimbursable costs from affiliates	3,821			5,537			7,689			10,841
Subadvisor fees	1,650			1,855			3,852			3,887
Stock-based compensation expense	1,454			1,708			2,819			5,621
Depreciation and amortization	966			963			1,932			2,000
	12,619			15,906			27,117			34,710
Other Income and Expenses
Equity in earnings of equity method investments in the Managed Programs	3,721			9,029			9,290			20,996
Other gains and (losses)	691			956			676			1,080
	4,412			9,985			9,966			22,076
Income before income taxes	5,462			21,310			12,636			38,815
(Provision for) benefit from income taxes	(100		)	(4,945		)	8,188			(2,476		)
Net Income from Investment Management	5,362			16,365			20,824			36,339
Net income attributable to noncontrolling interests	(92		)	—			(468		)	—
Net Income from Investment Management Attributable to W. P. Carey	$	5,270		$	16,365		$	20,356		$	36,339

Total Company



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Revenues	$	305,211		$	201,143		$	603,534		$	402,953
Operating expenses	179,170			109,202			356,892			230,168
Other income and (expenses)	(56,801		)	(6,255		)	(110,735		)	(25,035		)
Provision for income taxes	(3,119		)	(6,262		)	(990		)	(260		)
Net income attributable to noncontrolling interests	(83		)	(3,743		)	(385		)	(6,535		)
Net income attributable to W. P. Carey	$	66,038		$	75,681		$	134,532		$	140,955



	Total Assets at
	June 30, 2019		December 31, 2018
Real Estate	$	13,932,956	$	13,941,963
Investment Management	259,051		241,076
Total Company	$	14,192,007	$	14,183,039