Document

EX-99.2 3 wpc2022q1supplementalexh992.htm EX-99.2 Document

Exhibit 99.2

Filed by W. P. Carey Inc.

pursuant to Rule 425 under the Securities Act of 1933, as amended,

and deemed filed pursuant to Rule 14a-12 under the

Securities Exchange Act of 1934, as amended

Subject Company: Corporate Property Associates 18 – Global Incorporated

Registration No.: 333-264120

W. P. Carey Inc.

Supplemental Information

First Quarter 2022

Terms and Definitions

As used in this supplemental package, the terms “W. P. Carey,” “WPC,” “we,” “us” and “our” include W. P. Carey Inc., its consolidated subsidiaries and its predecessors, unless otherwise indicated. Other terms and definitions are as follows:


REIT			Real estate investment trust
CPA:18 – Global			Corporate Property Associates 18 – Global Incorporated
CESH			Carey European Student Housing Fund I, L.P.
WLT			Watermark Lodging Trust, Inc.
Managed Programs			CPA:18 – Global and CESH
U.S.			United States
AUM			Assets under management
ABR			Contractual minimum annualized base rent
NAV			Net asset value per share
SEC			Securities and Exchange Commission
ASC			Accounting Standards Codification
EUR			Euro
GBP			British pound sterling
JPY			Japanese yen
EURIBOR			Euro Interbank Offered Rate
SONIA			Sterling Overnight Index Average
TIBOR			Tokyo Interbank Offered Rate
Proposed Merger			Our proposed merger with CPA:18 – Global, pursuant to a merger agreement that we entered into on February 27, 2022, which was filed as Exhibit 2.1 to a Current Report on Form 8-K that we filed with the SEC on February 28, 2022

Important Note Regarding Non-GAAP Financial Measures

This supplemental package includes certain “non-GAAP” supplemental measures that are not defined by generally accepted accounting principles (“GAAP”), including funds from operations (“FFO”); adjusted funds from operations (“AFFO”); earnings before interest, taxes, depreciation and amortization (“EBITDA”); adjusted EBITDA; pro rata cash net operating income (“pro rata cash NOI”); normalized pro rata cash NOI; same store pro rata rental income; cash interest expense; and cash interest expense coverage ratio. FFO is a non-GAAP measure defined by the National Association of Real Estate Investments Trusts, Inc. (“NAREIT”), an industry trade group. Reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures are provided within this supplemental package. In addition, refer to the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of these non-GAAP financial measures and other metrics.

Amounts may not sum to totals due to rounding.

W. P. Carey Inc.

Supplemental Information – First Quarter 2022


Table of Contents


Overview
Summary Metrics			1
Components of Net Asset Value			3

Financial Results
Statements of Income – Last Five Quarters
Consolidated			6
Real Estate			7
Investment Management			8
FFO and AFFO – Last Five Quarters
Consolidated			9
Real Estate			10
Investment Management			11
Elements of Pro Rata Statement of Income and AFFO Adjustments			12
Capital Expenditures			13

Balance Sheets and Capitalization
Consolidated Balance Sheets			15
Capitalization			16
Debt Overview			17
Debt Maturity			18
Senior Unsecured Notes			19

Real Estate
Investment Activity
Capital Investments and Commitments			21
Investment Volume			22
Dispositions			23
Joint Ventures			24
Top Ten Tenants			25
Diversification by Property Type			26
Diversification by Tenant Industry			27
Diversification by Geography			28
Contractual Rent Increases			29
Same Store Analysis			30
Leasing Activity			33
Lease Expirations			34

Investment Management
Selected Information and Fee Summary – Managed Programs			36
Summary of Future Liquidity Considerations for the Managed Programs			37

Appendix
Normalized Pro Rata Cash NOI			39
Adjusted EBITDA – Last Five Quarters
Consolidated			41
Real Estate			42
Investment Management			43
Disclosures Regarding Non-GAAP and Other Metrics			44

W. P. Carey Inc.

Overview – First Quarter 2022


Summary Metrics

As of or for the three months ended March 31, 2022.


Financial Results
	Segment
	Real Estate		Investment Management		Total
Revenues, including reimbursable costs – consolidated ($000s)	$	344,091	$	4,347	$	348,438
Net income attributable to W. P. Carey ($000s)	146,858		10,137		156,995
Net income attributable to W. P. Carey per diluted share	0.77		0.05		0.82
Normalized pro rata cash NOI from real estate ($000s) (a) (b)	303,810		N/A		303,810
Adjusted EBITDA ($000s) (a) (b)	305,175		6,531		311,706
AFFO attributable to W. P. Carey ($000s) (a) (b)	252,014		6,812		258,826
AFFO attributable to W. P. Carey per diluted share (a) (b)	1.31		0.04		1.35

Dividends declared per share – current quarter					1.057
Dividends declared per share – current quarter annualized					4.228
Dividend yield – annualized, based on quarter end share price of $80.84					5.2		%
Dividend payout ratio – for the three months ended March 31, 2022 (c)					78.3		%

Balance Sheet and Capitalization
Equity market capitalization – based on quarter end share price of $80.84 ($000s)					$	15,553,209
Pro rata net debt ($000s) (d)					6,814,679
Enterprise value ($000s)					22,367,888

Total consolidated debt ($000s)					6,778,231
Gross assets ($000s) (e)					17,084,555
Liquidity ($000s) (f)					1,817,859

Pro rata net debt to enterprise value (b)					30.5		%
Pro rata net debt to adjusted EBITDA (annualized) (a) (b)					5.5x
Total consolidated debt to gross assets					39.7		%
Total consolidated secured debt to gross assets					2.1		%
Cash interest expense coverage ratio (a)					6.4x

Weighted-average interest rate (b)					2.5		%
Weighted-average debt maturity (years) (b)					5.2

Moody's Investors Service – issuer rating					Baa2 (positive)
Standard & Poor's Ratings Services – issuer rating					BBB (positive)

Real Estate Portfolio (Pro Rata)
ABR – total portfolio ($000s) (g)					$	1,262,953
ABR – unencumbered portfolio (% / $000s) (g) (h)			92.4% /		$	1,167,019
Number of net-leased properties					1,336
Number of operating properties (i)					20
Number of tenants – net-leased properties					356

ABR from investment grade tenants as a % of total ABR – net-leased properties (j)					31.4		%

Net-leased properties – square footage (millions)					157.4

Occupancy – net-leased properties					98.5		%
Weighted-average lease term (years)					10.8

Investment volume – current quarter ($000s)					$	307,702
Dispositions – current quarter ($000s)					26,609

Maximum commitment for capital investments and commitments expected to be completed during 2022 ($000s)					142,104
Construction loan funding expected to be completed during 2022 ($000s)					103,240
Total capital investments, commitments and construction loan funding expected to be completed during 2022 ($000s)					245,344

________


						Investing for the long runTM \| 1

W. P. Carey Inc.

Overview – First Quarter 2022

(a)Normalized pro rata cash NOI, adjusted EBITDA, AFFO and cash interest expense coverage ratio are non-GAAP measures. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of our non-GAAP measures and for details on how certain non-GAAP measures are calculated.

(b)Presented on a pro rata basis. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata.

(c)Represents dividends declared per share divided by AFFO per diluted share on a year-to-date basis.

(d)Represents total pro rata debt outstanding less consolidated cash and cash equivalents. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata.

(e)Gross assets represent consolidated total assets before accumulated depreciation on buildings and improvements. Gross assets are net of accumulated amortization on in-place lease intangible assets of $968.1 million and above-market rent intangible assets of $503.6 million.

(f)Represents (i) availability under our Senior Unsecured Credit Facility (net of amounts reserved for standby letters of credit), (ii) consolidated cash and cash equivalents, and (iii) available proceeds under our forward sale agreements (based on 3,925,000 remaining shares and a net offering price of $73.67 per share as of March 31, 2022, which will be updated at each quarter end).

(g)See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of ABR.

(h)Represents ABR from properties unencumbered by non-recourse mortgage debt.

(i)Comprised of 19 self-storage properties and one hotel.

(j)Percentage of portfolio is based on ABR, as of March 31, 2022. Includes tenants or guarantors with investment grade ratings (23.5%) and subsidiaries of non-guarantor parent companies with investment grade ratings (7.9%). Investment grade refers to an entity with a rating of BBB- or higher from Standard & Poor’s Ratings Services or Baa3 or higher from Moody’s Investors Service. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of ABR.


						Investing for the long runTM \| 2

W. P. Carey Inc.

Overview – First Quarter 2022


Components of Net Asset Value

Dollars in thousands, except per share amounts.


Real Estate	Three Months Ended Mar. 31, 2022		Annualized
Normalized pro rata cash NOI (a) (b)	$	303,810	$	1,215,240

Investment Management
Adjusted EBITDA (a) (b)	6,531		26,124
Selected Components of Adjusted EBITDA:
Asset management revenue	3,420		13,680
Operating partnership interest in real estate cash flow of CPA:18 – Global (c)	2,587		10,348
Back-end fees and interests associated with the Managed Programs	See the Summary of Future Liquidity Considerations for the Managed Programs section for details.

Balance Sheet – Selected Information (Consolidated Unless Otherwise Stated)			As of Mar. 31, 2022
Assets
Book value of real estate excluded from normalized pro rata cash NOI (d)			$	256,243
Cash and cash equivalents			205,403
Las Vegas retail complex construction loan (e)			122,067
Other secured loans receivable, net			24,143
Due from affiliates			13,594
Other assets, net:
Investment in shares of Lineage Logistics (a cold storage REIT)			$	366,339
Straight-line rent adjustments			245,019
Taxes receivable			68,350
Investment in common shares of WLT			61,432
Office lease right-of-use assets, net			59,098
Deferred charges			54,068
Restricted cash, including escrow			53,228
Non-rent tenant and other receivables			43,932
Securities and derivatives			28,660
Deferred income taxes			17,199
Leasehold improvements, furniture and fixtures			15,632
Prepaid expenses			14,238
Rent receivables (f)			3,816
Investment in shares of Guggenheim Credit Income Fund			3,805
Other intangible assets, net			1,027
Other			7,917
Total other assets, net			$	1,043,760

Liabilities
Total pro rata debt outstanding (b) (g)			$	7,020,082
Dividends payable			206,225
Deferred income taxes			143,208
Accounts payable, accrued expenses and other liabilities:
Accounts payable and accrued expenses			$	150,916
Operating lease liabilities			143,892
Prepaid and deferred rents			119,473
Tenant security deposits			59,391
Accrued taxes payable			42,600
Other			49,699
Total accounts payable, accrued expenses and other liabilities			$	565,971


						Investing for the long runTM \| 3

W. P. Carey Inc.

Overview – First Quarter 2022


Other	Ownership %		Estimated Value / Carrying Value
Ownership in Managed Programs: (h)
CPA:18 – Global (i)	5.7	%	$	77,610
CESH (j)	2.4	%	1,013
			$	78,623

________

(a)Normalized pro rata cash NOI and adjusted EBITDA are non-GAAP measures. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of our non-GAAP measures and for details on how they are calculated.

(b)Presented on a pro rata basis. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata.

(c)We are entitled to receive distributions of up to 10% of the Available Cash of CPA:18 – Global, as defined in its operating partnership agreement.

(d)Represents the value of real estate not included in normalized pro rata cash NOI, such as vacant assets, in-progress build-to-suit properties, real estate under construction for certain expansion projects at existing properties and a common equity interest in the Harmon Retail Corner in Las Vegas.

(e)Represents a construction loan for a retail complex in Las Vegas, Nevada, which was entered into in June 2021 and is included in Equity method investments (as an equity method investment in real estate) on our consolidated balance sheets. See the Investment Activity – Investment Volume section for additional information about this investment.

(f)Comprised of rent receivables that were substantially collected as of the date of this report.

(g)Excludes unamortized discount, net totaling $29.3 million and unamortized deferred financing costs totaling $27.5 million as of March 31, 2022.

(h)Separate from operating partnership interest in our affiliate, CPA:18 – Global, and our interests in unconsolidated real estate joint ventures with CPA:18 – Global.

(i)The estimated value of CPA:18 – Global is based on the estimated NAV of its Class A common stock of $9.07 as of September 30, 2021, which was calculated by relying in part on an estimate of the fair market value of the real estate portfolio adjusted to give effect to mortgage loans, both provided by third parties, as well as other adjustments. Refer to the SEC filings of CPA:18 – Global for the calculation methodology of its NAVs.

(j)We own limited partnership units of CESH. The value above reflects its private placement price, net of cash distributions. We do not intend to calculate a NAV for CESH.


						Investing for the long runTM \| 4

W. P. Carey Inc.

Financial Results

First Quarter 2022


						Investing for the long runTM \| 5

W. P. Carey Inc.

Financial Results – First Quarter 2022


Consolidated Statements of Income – Last Five Quarters

In thousands, except share and per share amounts.


	Three Months Ended
	Mar. 31, 2022		Dec. 31, 2021		Sep. 30, 2021		Jun. 30, 2021		Mar. 31, 2021
Revenues
Real Estate:
Lease revenues	$	307,725	$	305,093	$	298,616	$	289,064	$	284,665
Income from direct financing leases and loans receivable	18,379		15,637		16,754		17,422		17,742
Lease termination income and other (a)	14,122		45,590		1,421		5,059		1,585
Operating property revenues	3,865		4,004		4,050		3,245		2,179
	344,091		370,324		320,841		314,790		306,171
Investment Management:
Asset management and other revenue	3,420		3,571		3,872		3,966		3,954
Reimbursable costs from affiliates	927		985		1,041		968		1,041
	4,347		4,556		4,913		4,934		4,995
	348,438		374,880		325,754		319,724		311,166
Operating Expenses
Depreciation and amortization	115,393		135,662		115,657		114,348		110,322
General and administrative	23,084		19,591		19,750		20,464		22,083
Impairment charges	20,179		7,945		16,301		—		—
Reimbursable tenant costs	16,960		16,475		15,092		15,092		15,758
Property expenses, excluding reimbursable tenant costs	13,779		11,466		13,734		11,815		10,883
Stock-based compensation expense	7,833		6,091		4,361		9,048		5,381
Operating property expenses	2,787		2,887		3,001		2,049		1,911
Merger and other expenses (b)	(2,322)		(563)		(908)		(2,599)		(476)
Reimbursable costs from affiliates	927		985		1,041		968		1,041
	198,620		200,539		188,029		171,185		166,903
Other Income and Expenses
Interest expense	(46,053)		(47,208)		(48,731)		(49,252)		(51,640)
Other gains and (losses) (c)	35,745		(28,461)		49,219		7,545		(41,188)
Gain on sale of real estate, net	11,248		9,511		1,702		19,840		9,372
Non-operating income (d)	8,546		3,156		1,283		3,065		6,356
Earnings (losses) from equity method investments (e)	4,772		(6,675)		5,735		(156)		(9,733)
	14,258		(69,677)		9,208		(18,958)		(86,833)
Income before income taxes	164,076		104,664		146,933		129,581		57,430
Provision for income taxes	(7,083)		(5,052)		(8,347)		(9,298)		(5,789)
Net Income	156,993		99,612		138,586		120,283		51,641
Net loss (income) attributable to noncontrolling interests	2		(50)		(39)		(38)		(7)
Net Income Attributable to W. P. Carey	$	156,995	$	99,562	$	138,547	$	120,245	$	51,634

Basic Earnings Per Share	$	0.82	$	0.53	$	0.75	$	0.67	$	0.29
Diluted Earnings Per Share	$	0.82	$	0.53	$	0.74	$	0.67	$	0.29
Weighted-Average Shares Outstanding
Basic	191,911,414		187,630,036		185,422,639		180,099,370		176,640,861
Diluted	192,416,642		188,317,117		186,012,478		180,668,732		176,965,510

Dividends Declared Per Share	$	1.057	$	1.055	$	1.052	$	1.050	$	1.048

________

(a)Amount for the three months ended December 31, 2021 includes $37.8 million of lease termination fees that was determined to be non-core income and thus excluded from AFFO.

(b)Amount for the three months ended March 31, 2022 includes $0.9 million of costs incurred in connection with the Proposed Merger.

(c)Amount for the three months ended March 31, 2022 is primarily comprised of a mark-to-market unrealized gain on our investment in common shares of WLT of $28.0 million, a realized gain recognized on the redemption of our investment in preferred shares of WLT of $18.7 million and net loss on foreign currency transactions of $(11.1) million. Amount for the three months ended September 30, 2021 includes a mark-to-market unrealized gain for our investment in shares of Lineage Logistics of $52.9 million. Amount for the three months ended March 31, 2021 includes a loss on extinguishment of debt of $(59.9) million (of which $(31.7) million mainly comprised fees for the prepayment of certain non-recourse mortgage loans and $(28.2) million mainly comprised a “make-whole” amount paid in connection with the redemption of €500 million of 2.0% Senior Unsecured Notes due 2023 in March 2021). Amount for the three months ended March 31, 2021 also includes a mark-to-market unrealized gain for our investment in shares of Lineage Logistics of $23.4 million.

(d)Amount for the three months ended March 31, 2022 is comprised of a cash dividend of $4.3 million from our investment in shares of Lineage Logistics, realized gains on foreign currency exchange derivatives of $3.3 million and a cash dividend of $0.9 million from our investment in preferred shares of WLT.

(e)Amounts for the three months ended March 31, 2022, December 31, 2021 and March 31, 2021 include non-cash impairment charges of $4.6 million, $13.2 million and $6.8 million, respectively, recognized on certain equity method investments in real estate.


						Investing for the long runTM \| 6

W. P. Carey Inc.

Financial Results – First Quarter 2022


Statements of Income, Real Estate – Last Five Quarters

In thousands, except share and per share amounts.


	Three Months Ended
	Mar. 31, 2022		Dec. 31, 2021		Sep. 30, 2021		Jun. 30, 2021		Mar. 31, 2021
Revenues
Lease revenues	$	307,725	$	305,093	$	298,616	$	289,064	$	284,665
Income from direct financing leases and loans receivable	18,379		15,637		16,754		17,422		17,742
Lease termination income and other (a)	14,122		45,590		1,421		5,059		1,585
Operating property revenues	3,865		4,004		4,050		3,245		2,179
	344,091		370,324		320,841		314,790		306,171
Operating Expenses
Depreciation and amortization	115,393		135,662		115,657		114,348		110,322
General and administrative	23,084		19,591		19,750		20,464		22,083
Impairment charges	20,179		7,945		16,301		—		—
Reimbursable tenant costs	16,960		16,475		15,092		15,092		15,758
Property expenses, excluding reimbursable tenant costs	13,779		11,466		13,734		11,815		10,883
Stock-based compensation expense	7,833		6,091		4,361		9,048		5,381
Operating property expenses	2,787		2,887		3,001		2,049		1,911
Merger and other expenses (b)	(2,325)		(599)		(908)		(2,599)		(491)
	197,690		199,518		186,988		170,217		165,847
Other Income and Expenses
Interest expense	(46,053)		(47,208)		(48,731)		(49,252)		(51,640)
Other gains and (losses) (c)	34,418		(27,131)		48,172		7,472		(42,189)
Gain on sale of real estate, net	11,248		9,511		1,702		19,840		9,372
Non-operating income	8,542		3,158		1,283		3,065		6,272
Earnings (losses) from equity method investments in real estate (d)	(787)		(9,121)		2,445		(1,854)		(11,119)
	7,368		(70,791)		4,871		(20,729)		(89,304)
Income before income taxes	153,769		100,015		138,724		123,844		51,020
Provision for income taxes	(6,913)		(5,331)		(7,827)		(9,119)		(6,426)
Net Income from Real Estate	146,856		94,684		130,897		114,725		44,594
Net loss (income) attributable to noncontrolling interests	2		(50)		(39)		(38)		(7)
Net Income from Real Estate Attributable to W. P. Carey	$	146,858	$	94,634	$	130,858	$	114,687	$	44,587

Basic Earnings Per Share	$	0.77	$	0.50	$	0.71	$	0.64	$	0.25
Diluted Earnings Per Share	$	0.77	$	0.50	$	0.70	$	0.64	$	0.25
Weighted-Average Shares Outstanding
Basic	191,911,414		187,630,036		185,422,639		180,099,370		176,640,861
Diluted	192,416,642		188,317,117		186,012,478		180,668,732		176,965,510

________.

(a)Amount for the three months ended December 31, 2021 includes $37.8 million of lease termination fees that was determined to be non-core income and thus excluded from AFFO.

(b)Amount for the three months ended March 31, 2022 includes $0.9 million of costs incurred in connection with the Proposed Merger.

(d)Amounts for the three months ended March 31, 2022, December 31, 2021 and March 31, 2021 include non-cash impairment charges of $4.6 million, $13.2 million and $6.8 million, respectively, recognized on certain equity method investments in real estate.


						Investing for the long runTM \| 7

W. P. Carey Inc.

Financial Results – First Quarter 2022


Statements of Income, Investment Management – Last Five Quarters

In thousands, except share and per share amounts.


	Three Months Ended
	Mar. 31, 2022		Dec. 31, 2021		Sep. 30, 2021		Jun. 30, 2021		Mar. 31, 2021
Revenues
Asset management and other revenue	$	3,420	$	3,571	$	3,872	$	3,966	$	3,954
Reimbursable costs from affiliates	927		985		1,041		968		1,041
	4,347		4,556		4,913		4,934		4,995
Operating Expenses
Reimbursable costs from affiliates	927		985		1,041		968		1,041
Merger and other expenses	3		36		—		—		15
	930		1,021		1,041		968		1,056
Other Income and Expenses
Earnings from equity method investments in the Managed Programs	5,559		2,446		3,290		1,698		1,386
Other gains and (losses)	1,327		(1,330)		1,047		73		1,001
Non-operating income (loss)	4		(2)		—		—		84
	6,890		1,114		4,337		1,771		2,471
Income before income taxes	10,307		4,649		8,209		5,737		6,410
(Provision for) benefit from income taxes	(170)		279		(520)		(179)		637
Net Income from Investment Management Attributable to W. P. Carey	$	10,137	$	4,928	$	7,689	$	5,558	$	7,047

Basic Earnings Per Share	$	0.05	$	0.03	$	0.04	$	0.03	$	0.04
Diluted Earnings Per Share	$	0.05	$	0.03	$	0.04	$	0.03	$	0.04
Weighted-Average Shares Outstanding
Basic	191,911,414		187,630,036		185,422,639		180,099,370		176,640,861
Diluted	192,416,642		188,317,117		186,012,478		180,668,732		176,965,510


						Investing for the long runTM \| 8

W. P. Carey Inc.

Financial Results – First Quarter 2022


FFO and AFFO, Consolidated – Last Five Quarters

In thousands, except share and per share amounts.


	Three Months Ended
	Mar. 31, 2022		Dec. 31, 2021		Sep. 30, 2021		Jun. 30, 2021		Mar. 31, 2021
Net income attributable to W. P. Carey	$	156,995	$	99,562	$	138,547	$	120,245	$	51,634
Adjustments:
Depreciation and amortization of real property	114,646		134,149		114,204		112,997		109,204
Impairment charges	20,179		7,945		16,301		—		—
Gain on sale of real estate, net	(11,248)		(9,511)		(1,702)		(19,840)		(9,372)
Proportionate share of adjustments to earnings from equity method investments (a) (b)	7,683		15,183		3,290		3,434		10,306
Proportionate share of adjustments for noncontrolling interests (c)	(4)		(4)		(4)		(4)		(4)
Total adjustments	131,256		147,762		132,089		96,587		110,134
FFO (as defined by NAREIT) Attributable to W. P. Carey (d)	288,251		247,324		270,636		216,832		161,768
Adjustments:
Other (gains) and losses (e)	(35,745)		28,461		(49,219)		(7,545)		41,188
Above- and below-market rent intangible lease amortization, net	11,004		15,082		12,004		14,384		12,115
Straight-line and other leasing and financing adjustments (f)	(10,847)		(53,380)		(10,823)		(10,313)		(8,751)
Stock-based compensation	7,833		6,091		4,361		9,048		5,381
Amortization of deferred financing costs	3,128		3,239		3,424		3,447		3,413
Merger and other expenses (g) (h)	(2,322)		(563)		(908)		(2,599)		(476)
Tax (benefit) expense – deferred and other	(1,242)		(2,507)		(290)		217		(3,387)
Other amortization and non-cash items	552		560		557		563		29
Proportionate share of adjustments to earnings from equity method investments (b)	(1,781)		1,303		988		4,650		5,211
Proportionate share of adjustments for noncontrolling interests	(5)		(5)		(6)		(8)		(5)
Total adjustments	(29,425)		(1,719)		(39,912)		11,844		54,718
AFFO Attributable to W. P. Carey (d)	$	258,826	$	245,605	$	230,724	$	228,676	$	216,486

Summary
FFO (as defined by NAREIT) attributable to W. P. Carey (d)	$	288,251	$	247,324	$	270,636	$	216,832	$	161,768
FFO (as defined by NAREIT) attributable to W. P. Carey per diluted share (d)	$	1.50	$	1.31	$	1.45	$	1.20	$	0.91
AFFO attributable to W. P. Carey (d)	$	258,826	$	245,605	$	230,724	$	228,676	$	216,486
AFFO attributable to W. P. Carey per diluted share (d)	$	1.35	$	1.30	$	1.24	$	1.27	$	1.22
Diluted weighted-average shares outstanding	192,416,642		188,317,117		186,012,478		180,668,732		176,965,510

________

(a)Amounts for the three months ended March 31, 2022, December 31, 2021 and March 31, 2021 include non-cash impairment charges of $4.6 million, $13.2 million and $6.8 million, respectively, recognized on certain equity method investments in real estate.

(b)Equity income, including amounts that are not typically recognized for FFO and AFFO, is recognized within Earnings from equity method investments on the consolidated statements of income. This represents adjustments to equity income to reflect FFO and AFFO on a pro rata basis.

(c)Adjustments disclosed elsewhere in this reconciliation are on a consolidated basis. This adjustment reflects our FFO or AFFO on a pro rata basis.

(d)FFO and AFFO are non-GAAP measures. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of our non-GAAP measures.

(e)Amount for the three months ended March 31, 2022 is primarily comprised of a mark-to-market unrealized gain on our investment in common shares of WLT of $28.0 million, a realized gain recognized on the redemption of our investment in preferred shares of WLT of $18.7 million and net loss on foreign currency transactions of $(11.1) million.

(f)Amount for the three months ended December 31, 2021 includes an adjustment to exclude $37.8 million of lease termination fees received from a tenant. as such amount was determined to be non-core income.

(g)Amounts for the three months ended March 31, 2022, September 30, 2021 and June 30, 2021 are primarily comprised of reversals of estimated liabilities for German real estate transfer taxes that were previously recorded in connection with mergers in prior years.

(h)Amount for the three months ended March 31, 2022 includes $0.9 million of costs incurred in connection with the Proposed Merger.


						Investing for the long runTM \| 9

W. P. Carey Inc.

Financial Results – First Quarter 2022


FFO and AFFO, Real Estate – Last Five Quarters

In thousands, except share and per share amounts.


	Three Months Ended
	Mar. 31, 2022		Dec. 31, 2021		Sep. 30, 2021		Jun. 30, 2021		Mar. 31, 2021
Net income from Real Estate attributable to W. P. Carey	$	146,858	$	94,634	$	130,858	$	114,687	$	44,587
Adjustments:
Depreciation and amortization of real property	114,646		134,149		114,204		112,997		109,204
Impairment charges	20,179		7,945		16,301		—		—
Gain on sale of real estate, net	(11,248)		(9,511)		(1,702)		(19,840)		(9,372)
Proportionate share of adjustments to earnings from equity method investments (a) (b)	7,683		15,183		3,290		3,434		10,306
Proportionate share of adjustments for noncontrolling interests (c)	(4)		(4)		(4)		(4)		(4)
Total adjustments	131,256		147,762		132,089		96,587		110,134
FFO (as defined by NAREIT) Attributable to W. P. Carey – Real Estate (d)	278,114		242,396		262,947		211,274		154,721
Adjustments:
Other (gains) and losses (e)	(34,418)		27,131		(48,172)		(7,472)		42,189
Above- and below-market rent intangible lease amortization, net	11,004		15,082		12,004		14,384		12,115
Straight-line and other leasing and financing adjustments (f)	(10,847)		(53,380)		(10,823)		(10,313)		(8,751)
Stock-based compensation	7,833		6,091		4,361		9,048		5,381
Amortization of deferred financing costs	3,128		3,239		3,424		3,447		3,413
Merger and other expenses (g) (h)	(2,325)		(599)		(908)		(2,599)		(491)
Tax (benefit) expense – deferred and other	(1,189)		(1,851)		(700)		208		(2,595)
Other amortization and non-cash items	552		560		557		563		29
Proportionate share of adjustments to earnings from equity method investments (b)	167		325		1,761		3,845		4,322
Proportionate share of adjustments for noncontrolling interests (c)	(5)		(5)		(6)		(8)		(5)
Total adjustments	(26,100)		(3,407)		(38,502)		11,103		55,607
AFFO Attributable to W. P. Carey – Real Estate (d)	$	252,014	$	238,989	$	224,445	$	222,377	$	210,328

Summary
FFO (as defined by NAREIT) attributable to W. P. Carey – Real Estate (d)	$	278,114	$	242,396	$	262,947	$	211,274	$	154,721
FFO (as defined by NAREIT) attributable to W. P. Carey per diluted share – Real Estate (d)	$	1.45	$	1.29	$	1.41	$	1.17	$	0.88
AFFO attributable to W. P. Carey – Real Estate (d)	$	252,014	$	238,989	$	224,445	$	222,377	$	210,328
AFFO attributable to W. P. Carey per diluted share – Real Estate (d)	$	1.31	$	1.27	$	1.21	$	1.23	$	1.19
Diluted weighted-average shares outstanding	192,416,642		188,317,117		186,012,478		180,668,732		176,965,510

________

(c)Adjustments disclosed elsewhere in this reconciliation are on a consolidated basis. This adjustment reflects our FFO or AFFO on a pro rata basis.

(d)FFO and AFFO are non-GAAP measures. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of our non-GAAP measures.

(h)Amount for the three months ended March 31, 2022 includes $0.9 million of costs incurred in connection with the Proposed Merger.


						Investing for the long runTM \| 10

W. P. Carey Inc.

Financial Results – First Quarter 2022


FFO and AFFO, Investment Management – Last Five Quarters

In thousands, except share and per share amounts.


	Three Months Ended
	Mar. 31, 2022		Dec. 31, 2021		Sep. 30, 2021		Jun. 30, 2021		Mar. 31, 2021
Net income from Investment Management attributable to W. P. Carey	$	10,137	$	4,928	$	7,689	$	5,558	$	7,047
FFO (as defined by NAREIT) Attributable to W. P. Carey – Investment Management (a)	10,137		4,928		7,689		5,558		7,047
Adjustments:
Other (gains) and losses	(1,327)		1,330		(1,047)		(73)		(1,001)
Tax (benefit) expense – deferred and other	(53)		(656)		410		9		(792)
Merger and other expenses	3		36		—		—		15
Proportionate share of adjustments to earnings from equity method investments (b)	(1,948)		978		(773)		805		889
Total adjustments	(3,325)		1,688		(1,410)		741		(889)
AFFO Attributable to W. P. Carey – Investment Management (a)	$	6,812	$	6,616	$	6,279	$	6,299	$	6,158

Summary
FFO (as defined by NAREIT) attributable to W. P. Carey – Investment Management (a)	$	10,137	$	4,928	$	7,689	$	5,558	$	7,047
FFO (as defined by NAREIT) attributable to W. P. Carey per diluted share – Investment Management (a)	$	0.05	$	0.02	$	0.04	$	0.03	$	0.03
AFFO attributable to W. P. Carey – Investment Management (a)	$	6,812	$	6,616	$	6,279	$	6,299	$	6,158
AFFO attributable to W. P. Carey per diluted share – Investment Management (a)	$	0.04	$	0.03	$	0.03	$	0.04	$	0.03
Diluted weighted-average shares outstanding	192,416,642		188,317,117		186,012,478		180,668,732		176,965,510

________

(a)FFO and AFFO are non-GAAP measures. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of our non-GAAP measures.


						Investing for the long runTM \| 11

W. P. Carey Inc.

Financial Results – First Quarter 2022


Elements of Pro Rata Statement of Income and AFFO Adjustments

In thousands. For the three months ended March 31, 2022.

We believe that the table below is useful for investors to help them better understand our business by illustrating the impact of each of our AFFO adjustments on our GAAP statement of income line items. This presentation is not an alternative to the GAAP statement of income, nor is AFFO an alternative to net income as determined by GAAP.


	Equity Method Investments (a)		Noncontrolling Interests (b)		AFFO Adjustments
Revenues
Real Estate:
Lease revenues	$	6,365	$	(29)	$	(294)	(c)
Income from direct financing leases and loans receivable	—		—		480
Lease termination income and other	7		—		—
Operating property revenues:
Hotel revenues	—		—		—
Self-storage revenues	2,156		—		—

Investment Management:
Asset management and other revenue	—		—		—
Reimbursable costs from affiliates	—		—		—

Operating Expenses
Depreciation and amortization	3,063		(4)		(117,900)		(d)
General and administrative	9		—		—
Impairment charges	4,610		—		(24,789)		(e)
Reimbursable tenant costs	698		(7)		—
Property expenses, excluding reimbursable tenant costs	395		—		(395)		(e)
Stock-based compensation expense	—		—		(7,833)		(e)
Operating property expenses:	—
Hotel expenses	—		—		—
Self-storage expenses	785		—		(28)
Merger and other expenses	—		—		2,322		(f)
Reimbursable costs from affiliates	—		—		—

Other Income and Expenses
Interest expense	(1,259)		—		3,106		(g)
Other gains and (losses)	70		5		(35,820)		(h)
Gain on sale of real estate, net	—		—		(11,248)
Non-operating income	(3)		—		—
Earnings from equity method investments:
Income related to our general partnership interest in CPA:18 – Global	—		—		—
Losses related to joint ventures	2,610		—		149		(i)
Income related to our ownership in the Managed Programs	—		—		(1,948)

Provision for income taxes	(386)		(1)		(1,217)		(j)
Net income attributable to noncontrolling interests	—		14		—

________

(a)Represents the break-out by line item of amounts recorded in Earnings from equity method investments.

(b)Represents the break-out by line item of amounts recorded in Net income attributable to noncontrolling interests.

(c)Represents the reversal of amortization of above- or below-market lease intangibles of $11.0 million and the elimination of non-cash amounts related to straight-line rent and other of $11.3 million.

(d)Adjustment is a non-cash adjustment excluding corporate depreciation and amortization.

(e)Adjustment to exclude a non-cash item.

(f)Represents (i) $3.6 million of reversals of estimated liabilities for German real estate transfer taxes that were previously recorded in connection with mergers in prior years and (ii) $0.9 million of costs incurred in connection with the Proposed Merger.

(g)Represents the elimination of non-cash components of interest expense, such as deferred financing costs, debt premiums and discounts.

(h)Represents eliminations of gains (losses) related to the extinguishment of debt, unrealized foreign currency gains (losses), gains (losses) on marketable securities, non-cash allowance for credit losses on loans receivable and direct financing leases, and other items.

(i)Adjustments to include our pro rata share of AFFO adjustments from equity method investments.

(j)Primarily represents the elimination of deferred taxes.


						Investing for the long runTM \| 12

W. P. Carey Inc.

Financial Results – First Quarter 2022


Capital Expenditures

In thousands. For the three months ended March 31, 2022.


Tenant Improvements and Leasing Costs
Tenant improvements	$	2,169
Leasing costs	490
Tenant Improvements and Leasing Costs	2,659

Maintenance Capital Expenditures
Net-lease properties	753
Operating properties	61
Maintenance Capital Expenditures	814

Total: Tenant Improvements and Leasing Costs, and Maintenance Capital Expenditures	$	3,473

Non-Maintenance Capital Expenditures
Net-lease properties	$	98
Operating properties	—
Non-Maintenance Capital Expenditures	$	98

Other Capital Expenditures
Net-lease properties	$	835
Operating properties	—
Other Capital Expenditures	$	835


						Investing for the long runTM \| 13

W. P. Carey Inc.

Balance Sheets and Capitalization

First Quarter 2022


						Investing for the long runTM \| 14

W. P. Carey Inc.

Balance Sheets and Capitalization – First Quarter 2022


Consolidated Balance Sheets

In thousands, except share and per share amounts.


	March 31, 2022		December 31, 2021
Assets
Investments in real estate:
Land, buildings and improvements (a)	$	12,031,896	$	11,875,407
Net investments in direct financing leases and loans receivable	787,674		813,577
In-place lease intangible assets and other	2,397,121		2,386,000
Above-market rent intangible assets	837,792		843,410
Investments in real estate	16,054,483		15,918,394
Accumulated depreciation and amortization (b)	(2,986,676)		(2,889,294)
Assets held for sale, net	—		8,269
Net investments in real estate	13,067,807		13,037,369
Equity method investments (c)	339,372		356,637
Cash and cash equivalents	205,403		165,427
Due from affiliates	13,594		1,826
Other assets, net	1,043,760		1,017,842
Goodwill	899,596		901,529
Total assets	$	15,569,532	$	15,480,630

Liabilities and Equity
Debt:
Senior unsecured notes, net	$	5,647,833	$	5,701,913
Unsecured revolving credit facility	476,085		410,596
Unsecured term loans, net	303,138		310,583
Non-recourse mortgages, net	351,175		368,524
Debt, net	6,778,231		6,791,616
Accounts payable, accrued expenses and other liabilities	565,971		572,846
Below-market rent and other intangible liabilities, net	181,236		183,286
Deferred income taxes	143,208		145,572
Dividends payable	206,225		203,859
Total liabilities	7,874,871		7,897,179

Preferred stock, $0.001 par value, 50,000,000 shares authorized; none issued	—		—
Common stock, $0.001 par value, 450,000,000 shares authorized; 192,394,960 and 190,013,751 shares, respectively, issued and outstanding	192		190
Additional paid-in capital	10,152,426		9,977,686
Distributions in excess of accumulated earnings	(2,274,619)		(2,224,231)
Deferred compensation obligation	57,152		49,810
Accumulated other comprehensive loss	(242,140)		(221,670)
Total stockholders' equity	7,693,011		7,581,785
Noncontrolling interests	1,650		1,666
Total equity	7,694,661		7,583,451
Total liabilities and equity	$	15,569,532	$	15,480,630

________

(a)Includes $83.7 million of amounts attributable to operating properties as of both March 31, 2022 and December 31, 2021.

(b)Includes $1.5 billion of accumulated depreciation on buildings and improvements as of both March 31, 2022 and December 31, 2021, and $1.5 billion and $1.4 billion of accumulated amortization on lease intangibles as of March 31, 2022 and December 31, 2021, respectively.

(c)Our equity method investments in real estate totaled $271.7 million and $291.9 million as of March 31, 2022 and December 31, 2021, respectively. Our equity method investments in the Managed Programs totaled $67.6 million and $64.7 million as of March 31, 2022 and December 31, 2021, respectively.


						Investing for the long runTM \| 15

W. P. Carey Inc.

Balance Sheets and Capitalization – First Quarter 2022


Capitalization

In thousands, except share and per share amounts. As of March 31, 2022.


Description	Shares	Share Price		Market Value
Equity
Common equity	192,394,960	$	80.84	$	15,553,209
Preferred equity				—
Total Equity Market Capitalization				15,553,209

				Outstanding Balance (a)
Pro Rata Debt
Non-recourse mortgages				537,031
Unsecured revolving credit facility (due February 20, 2025)				476,085
Unsecured term loans (due February 20, 2025)				303,963
Senior unsecured notes:
Due April 1, 2024 (USD)				500,000
Due July 19, 2024 (EUR)				555,050
Due February 1, 2025 (USD)				450,000
Due April 9, 2026 (EUR)				555,050
Due October 1, 2026 (USD)				350,000
Due April 15, 2027 (EUR)				555,050
Due April 15, 2028 (EUR)				555,050
Due July 15, 2029 (USD)				325,000
Due June 1, 2030 (EUR)				582,803
Due February 1, 2031 (USD)				500,000
Due February 1, 2032 (USD)				350,000
Due April 1, 2033 (USD)				425,000
Total Pro Rata Debt				7,020,082

Total Capitalization				$	22,573,291

________

(a)Excludes unamortized discount, net totaling $29.3 million and unamortized deferred financing costs totaling $27.5 million as of March 31, 2022.


						Investing for the long runTM \| 16

W. P. Carey Inc.

Balance Sheets and Capitalization – First Quarter 2022


Debt Overview

Dollars in thousands. Pro rata. As of March 31, 2022.


	USD-Denominated				EUR-Denominated				Other Currencies (a)				Total
													Outstanding Balance
	Out-standing Balance (in USD)		Weigh-ted Avg. Interest Rate		Out-standing Balance (in USD)		Weigh-ted Avg. Interest Rate		Out-standing Balance (in USD)		Weigh-ted Avg. Interest Rate		Amount (in USD)		% of Total		Weigh-ted Avg. Interest Rate		Weigh-ted Avg. Maturity (Years)
Non-Recourse Debt (b) (c)
Fixed	$	207,185	5.3	%	$	72,825	3.0	%	$	22,230	4.5	%	$	302,240	4.3	%	4.7	%	2.5
Variable:
Swapped	11,590		3.9	%	130,469		2.2	%	—		—	%	142,059		2.0	%	2.3	%	1.8
Floating	—		—	%	80,869		1.7	%	—		—	%	80,869		1.1	%	1.7	%	0.6
Capped	—		—	%	11,863		1.6	%	—		—	%	11,863		0.2	%	1.6	%	1.3
Total Pro Rata Non-Recourse Debt	218,775		5.3	%	296,026		2.2	%	22,230		4.5	%	537,031		7.6	%	3.6	%	2.0

Recourse Debt (b) (c)
Fixed – Senior unsecured notes:
Due April 1, 2024	500,000		4.6	%	—		—	%	—		—	%	500,000		7.1	%	4.6	%	2.0
Due July 19, 2024	—		—	%	555,050		2.3	%	—		—	%	555,050		7.9	%	2.3	%	2.3
Due February 1, 2025	450,000		4.0	%	—		—	%	—		—	%	450,000		6.4	%	4.0	%	2.8
Due April 9, 2026	—		—	%	555,050		2.3	%	—		—	%	555,050		7.9	%	2.3	%	4.0
Due October 1, 2026	350,000		4.3	%	—		—	%	—		—	%	350,000		5.0	%	4.3	%	4.5
Due April 15, 2027	—		—	%	555,050		2.1	%	—		—	%	555,050		7.9	%	2.1	%	5.0
Due April 15, 2028	—		—	%	555,050		1.4	%	—		—	%	555,050		7.9	%	1.4	%	6.0
Due July 15, 2029	325,000		3.9	%	—		—	%	—		—	%	325,000		4.6	%	3.9	%	7.3
Due June 1, 2030	—		—	%	582,803		1.0	%	—		—	%	582,803		8.3	%	1.0	%	8.2
Due February 1, 2031	500,000		2.4	%	—		—	%	—		—	%	500,000		7.1	%	2.4	%	8.9
Due February 1, 2032	350,000		2.5	%	—		—	%	—		—	%	350,000		5.0	%	2.5	%	5.0
Due April 1, 2033	425,000		2.3	%	—		—	%	—		—	%	425,000		6.1	%	2.3	%	11.0
Total Senior Unsecured Notes	2,900,000		3.4	%	2,803,003		1.8	%	—		—	%	5,703,003		81.2	%	2.6	%	5.5
Variable:
Unsecured revolving credit facility (due February 20, 2025) (d)	—		—	%	283,076		0.9	%	193,009		1.5	%	476,085		6.8	%	1.1	%	2.9
Unsecured term loans (due February 20, 2025) (e)	—		—	%	107,125		1.0	%	196,838		1.7	%	303,963		4.4	%	1.4	%	2.9
Total Recourse Debt	2,900,000		3.4	%	3,193,204		1.7	%	389,847		1.6	%	6,483,051		92.4	%	2.4	%	5.2

Total Pro Rata Debt Outstanding	$	3,118,775	3.5	%	$	3,489,230	1.7	%	$	412,077	1.7	%	$	7,020,082	100.0	%	2.5	%	5.2

________

(a)Other currencies include debt denominated in British pound sterling, Norwegian krone and Japanese yen.

(b)Debt data is presented on a pro rata basis. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata.

(c)Excludes unamortized discount, net totaling $29.3 million and unamortized deferred financing costs totaling $27.5 million as of March 31, 2022.

(d)Depending on the currency, we incurred interest on our Unsecured revolving credit facility at EURIBOR plus 0.85%, SONIA plus 0.8826% or TIBOR plus 0.85%. Each has a floor of 0.00% under the terms of our credit agreement. Availability under our Unsecured revolving credit facility (net of amounts reserved for standby letters of credit) was approximately $1.3 billion as of March 31, 2022.

(e)We incurred interest at SONIA plus 0.9826% or EURIBOR plus 0.95% on our Unsecured term loans.


						Investing for the long runTM \| 17

W. P. Carey Inc.

Balance Sheets and Capitalization – First Quarter 2022


Debt Maturity

Dollars in thousands. Pro rata. As of March 31, 2022.


	Real Estate			Debt
	Number of Properties (a)			Weighted-Average Interest Rate				Total Outstanding Balance (b) (c)		% of Total Outstanding Balance
Year of Maturity		ABR (a)				Balloon
Non-Recourse Debt
Remaining 2022	6	$	17,908	3.8	%	$	71,006	$	73,133	1.0	%
2023	19	35,583		3.0	%	218,216		225,026		3.2	%
2024	30	20,630		2.8	%	106,207		115,280		1.6	%
2025	10	11,937		4.8	%	53,596		60,731		0.9	%
2026	4	8,872		6.0	%	30,638		38,304		0.6	%
2027	1	—		4.3	%	21,450		21,450		0.3	%
2031	1	1,004		6.0	%	—		3,107		—	%
Total Pro Rata Non-Recourse Debt	71	$	95,934	3.6	%	$	501,113	537,031		7.6	%

Recourse Debt
Fixed – Senior unsecured notes:
Due April 1, 2024 (USD)				4.6	%			500,000		7.1	%
Due July 19, 2024 (EUR)				2.3	%			555,050		7.9	%
Due February 1, 2025 (USD)				4.0	%			450,000		6.4	%
Due April 9, 2026 (EUR)				2.3	%			555,050		7.9	%
Due October 1, 2026 (USD)				4.3	%			350,000		5.0	%
Due April 15, 2027 (EUR)				2.1	%			555,050		7.9	%
Due April 15, 2028 (EUR)				1.4	%			555,050		7.9	%
Due July 15, 2029 (USD)				3.9	%			325,000		4.6	%
Due June 1, 2030 (EUR)				1.0	%			582,803		8.3	%
Due February 1, 2031 (USD)				2.4	%			500,000		7.1	%
Due February 1, 2032 (USD)				2.5	%			350,000		5.0	%
Due April 1, 2033 (USD)				2.3	%			425,000		6.1	%
Total Senior Unsecured Notes				2.6	%			5,703,003		81.2	%
Variable:
Unsecured revolving credit facility (due February 20, 2025) (d)				1.1	%			476,085		6.8	%
Unsecured term loans (due February 20, 2025) (e)				1.4	%			303,963		4.4	%
Total Recourse Debt				2.4	%			6,483,051		92.4	%

Total Pro Rata Debt Outstanding				2.5	%			$	7,020,082	100.0	%

________

(a)Represents the number of properties and ABR associated with the debt that is maturing in each respective year.

(b)Debt maturity data is presented on a pro rata basis. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata. Total outstanding balance includes balloon payments and scheduled amortization for our non-recourse debt.

(c)Excludes unamortized discount, net totaling $29.3 million and unamortized deferred financing costs totaling $27.5 million as of March 31, 2022.

(e)We incurred interest at SONIA plus 0.9826% or EURIBOR plus 0.95% on our Unsecured term loans.


						Investing for the long runTM \| 18

W. P. Carey Inc.

Balance Sheets and Capitalization – First Quarter 2022


Senior Unsecured Notes

As of March 31, 2022.

Ratings

Issuer

Senior Unsecured Notes

Ratings Agency

Rating

Outlook

Rating

Moody's

Baa2

Positive

Baa2

Standard & Poor’s

BBB

Positive

BBB

Senior Unsecured Note Covenants

The following is a summary of the key financial covenants for the Senior Unsecured Notes, along with our estimated calculations of our compliance with those covenants at the end of the period presented. These ratios are not measures of our liquidity or performance and serve only to demonstrate our ability to incur additional debt, as permitted by the covenants for the Senior Unsecured Notes.

Covenant

Metric

Required

As of Mar. 31, 2022

Limitation on the incurrence of debt

"Total Debt" /
"Total Assets"

≤ 60%

38.3%

Limitation on the incurrence of secured debt

"Secured Debt" /
"Total Assets"

≤ 40%

2.0%

Limitation on the incurrence of debt based on consolidated EBITDA to annual debt service charge

"Consolidated EBITDA" /
"Annual Debt Service Charge"

≥ 1.5x

6.6x

Maintenance of unencumbered asset value

"Unencumbered Assets" / "Total Unsecured Debt"

≥ 150%

244.9%


						Investing for the long runTM \| 19

W. P. Carey Inc.

Real Estate

First Quarter 2022


						Investing for the long runTM \| 20

W. P. Carey Inc.

Real Estate – First Quarter 2022


Investment Activity – Capital Investments and Commitments (a)

Dollars in thousands. Pro rata.


		Primary Transaction Type	Property Type	Expected Completion / Closing Date	Gross Square Footage	Lease Term (Years) (b)	Funded During Three Months Ended Mar. 31, 2022		Total Funded Through Mar. 31, 2022		Maximum Commitment / Gross Investment Amount
Tenant	Location										Remaining		Total
Henkel AG & Co. (c)	Bowling Green, KY	Renovation	Warehouse	Q2 2022	N/A	15	$	650	$	61,575	$	7,895	$	69,470
Upfield Group B.V. (d)	Wageningen, The Netherlands	Build-to-Suit	Laboratory	Q2 2022	65,734	20	4,262		27,046		857		27,903
Ontex BVBA (d)	Radomsko, Poland	Expansion	Industrial	Q3 2022	463,817	20	4,541		4,818		20,581		25,399
Hellweg Die Profi-Baumärkte GmbH & Co. KG (d)	Various, Germany	Renovation	Retail	Q4 2022	N/A	15	—		—		2,331		2,331
National Coatings & Supplies, Inc.	Nashville, TN	Expansion	Warehouse	Q4 2022	13,500	17	—		—		2,100		2,100
COOP Danmark A/S (3 properties) (d) (e)	Various, Denmark	Purchase Commitment	Retail	Various	34,089	15	—		—		10,592		10,592
Outfront Media, LLC	Various, NJ	Build-to-Suit	Outdoor Advertising	Various	N/A	30	2,096		4,172		137		4,309
Expected Completion Date 2022 Total					577,140	17	11,549		97,611		44,493		142,104

Chattem, Inc.	Chattanooga, TN	Expansion	Warehouse	Q2 2023	120,000	10	—		—		22,752		22,752
Expected Completion Date 2023 Total					120,000	10	—		—		22,752		22,752

Capital Investments and Commitments Total					697,140	16	$	11,549	$	97,611	$	67,245	$	164,856

________

(a)This schedule includes future estimates for which we can give no assurance as to timing or amounts. Completed capital investments and commitments are included in the Investment Activity – Investment Volume section. Funding amounts exclude capitalized construction interest.

(b)Total lease terms are based on weighted-average ABR for the investments expected upon completion.

(c)This project was completed in April 2022.

(d)Commitment amounts are based on the applicable exchange rate at period end.

(e)Properties are expected to be acquired upon completion of renovations.


						Investing for the long runTM \| 21

W. P. Carey Inc.

Real Estate – First Quarter 2022


Investment Activity – Investment Volume

Dollars in thousands. Pro rata. For the three months ended March 31, 2022.

Property Type(s)

Closing Date / Asset Completion Date

Gross Investment Amount

Investment Type

Lease Term (Years) (a)

Gross Square Footage

Tenant / Lease Guarantor

Property Location(s)

1Q22

Balcan Innovations Inc.

Pleasant Prairie, WI

Industrial

Jan-22

20,024

Sale-leaseback

175,168

Memora Servicios Funerarios S.L (26 properties) (b)

Various, Spain

Funeral Home

Feb-22

146,364

Sale-leaseback

370,204

COOP Danmark A/S (8 properties) (b)

Various, Denmark

Retail

Feb-22

33,976

Sale-leaseback

121,263

Metra S.p.A. (b)

Laval, Canada

Industrial

Feb-22

21,459

Sale-leaseback

162,600

Chattem, Inc. (c)

Chattanooga, TN

Warehouse

Mar-22

43,198

Acquisition

689,450

Orgill, Inc.

Hurricane, UT

Warehouse

Mar-22

20,000

Expansion

427,680

Jumbo Food Groep B.V. (b)

Breda, Netherlands

Warehouse

Mar-22

4,721

Expansion

41,893

Year-to-Date Total

289,742

1,988,258


		Property Type(s)	Funded During Current Quarter		Funded Year to Date		Expected Funding Completion Date	Total Funded		Maximum Commitment
Description	Property Location(s)
Construction Loan
Southwest Corner of Las Vegas Boulevard & Harmon Avenue Retail Complex (d)	Las Vegas, NV	Retail	$	17,960	$	17,960	Q4 2022	$	121,674	$	224,914
Total					17,960

Year-to-Date Total Investment Volume					$	307,702

________

(a)Total lease terms are based on weighted-average ABR for the investments as of the respective period ends.

(b)Amount reflects the applicable exchange rate on the date of the transaction.

(c)We also committed to fund an additional $22.8 million for an expansion at this facility, which is expected to be completed in the second quarter of 2023.

(d)This construction loan is accounted for as an equity method investment on our consolidated balance sheets, in accordance with U.S. GAAP. The interest rate is 6.0% and interest income is recognized within Earnings from equity method investments on our consolidated statements of income.


						Investing for the long runTM \| 22

W. P. Carey Inc.

Real Estate – First Quarter 2022


Investment Activity – Dispositions

Dollars in thousands. Pro rata. For the three months ended March 31, 2022.

Tenant / Lease Guarantor

Property Location(s)

Gross Sale Price

Closing Date

Property Type(s)

Gross Square Footage

1Q22

Vacant

Flora, MS

5,500

Jan-22

Warehouse

102,498

Barnes & Noble, Inc.

Braintree, MA

13,800

Feb-22

Retail

19,661

Pendragon PLC (3 properties) (a)

Ardrossan, Blackpool and Stourbridge, United Kingdom

3,234

Mar-22

Retail

36,199

Vacant

Anchorage, AK

4,075

Mar-22

Warehouse

40,512

Year-to-Date Total Dispositions

26,609

198,870

________

(a)Amount reflects the applicable exchange rate on the date of the transaction.


						Investing for the long runTM \| 23

W. P. Carey Inc.

Real Estate – First Quarter 2022


Joint Ventures

Dollars in thousands. As of March 31, 2022.


Joint Venture or JV (Principal Tenant)	JV Partnership		Consolidated				Pro Rata (a)
	Partner	WPC %	Debt Outstanding (b)		ABR		Debt Outstanding (c)		ABR
Unconsolidated Joint Ventures (Equity Method Investments) (d)
Kesko Senukai (e)	Third party	70.00%	$	112,023	$	14,566	$	78,416	$	10,196
State Farm Mutual Automobile Insurance Co.	CPA:18 – Global	50.00%	72,800		8,152		36,400		4,076
Bank Pekao (e)	CPA:18 – Global	50.00%	51,429		8,929		25,715		4,464
Apply Sørco AS (e)	CPA:18 – Global	49.00%	40,924		4,839		20,053		2,371
Fortenova Grupa d.d. (e)	CPA:18 – Global	20.00%	16,009		3,454		3,202		691
Total Unconsolidated Joint Ventures			293,185		39,940		163,786		21,798

Consolidated Joint Ventures
McCoy-Rockford, Inc.	Third party	90.00%	—		917		—		826
Total Consolidated Joint Ventures			—		917		—		826
Total Unconsolidated and Consolidated Joint Ventures			$	293,185	$	40,857	$	163,786	$	22,624

________

(a)See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata.

(b)Excludes unamortized deferred financing costs totaling less than $0.1 million and unamortized discount, net totaling $0.2 million as of March 31, 2022.

(c)Excludes unamortized deferred financing costs totaling less than $0.1 million and unamortized discount, net totaling $0.1 million as of March 31, 2022.

(d)Excludes (i) a 90.00% equity position in a jointly owned investment, Johnson Self Storage (comprised of nine self-storage operating properties), which did not have debt outstanding as of March 31, 2022, (ii) a 15.00% common equity interest in a jointly owned investment, the Harmon Retail Corner in Las Vegas, and (iii) a construction loan for a retail complex in Las Vegas, Nevada, accounted for as an equity method investment in real estate, as described in the Components of Net Asset Value section.

(e)Amounts are based on the applicable exchange rate at the end of the period.


						Investing for the long runTM \| 24

W. P. Carey Inc.

Real Estate – First Quarter 2022


Top Ten Tenants

Dollars in thousands. Pro rata. As of March 31, 2022.


Tenant / Lease Guarantor	Description	Number of Properties	ABR		ABR %		Weighted-Average Lease Term (Years)
U-Haul Moving Partners Inc. and Mercury Partners, LP	Net lease self-storage properties in the U.S.	78	$	38,751	3.1	%	2.1
State of Andalucía (a)	Government office properties in Spain	70	30,465		2.4	%	12.7
Hellweg Die Profi-Baumärkte GmbH & Co. KG (a)	Do-it-yourself retail properties in Germany	35	28,361		2.3	%	14.9
Metro Cash & Carry Italia S.p.A. (a)	Business-to-business wholesale stores in Italy and Germany	20	28,313		2.2	%	6.5
OBI Group (a)	Do-it-yourself retail properties in Poland	26	22,994		1.8	%	8.4
Extra Space Storage, Inc.	Net lease self-storage properties in the U.S.	27	22,957		1.8	%	22.1
Pendragon PLC (a)	Automotive dealerships in the United Kingdom	66	22,607		1.8	%	12.7
Marriott Corporation	Net lease hotel properties in the U.S.	18	21,350		1.7	%	1.8
Advance Auto Parts, Inc.	Distribution facilities in the U.S.	29	19,851		1.6	%	10.8
Nord Anglia Education, Inc.	K-12 private schools in the U.S.	3	19,473		1.5	%	21.5
Total (b)		372	$	255,122	20.2	%	10.7

________

(a)ABR amounts are subject to fluctuations in foreign currency exchange rates.

(b)See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata.


						Investing for the long runTM \| 25

W. P. Carey Inc.

Real Estate – First Quarter 2022


Diversification by Property Type

In thousands, except percentages. Pro rata. As of March 31, 2022.


	Total Net-Lease Portfolio
Property Type	ABR		ABR %		Square Footage (a)	Square Footage %
U.S.
Industrial	$	253,718	20.1	%	44,299	28.2	%
Warehouse	180,914		14.3	%	37,557	23.8	%
Office	151,545		12.0	%	9,714	6.2	%
Retail (b)	45,451		3.6	%	2,903	1.8	%
Self Storage (net lease)	61,708		4.9	%	5,810	3.7	%
Other (c)	103,524		8.2	%	5,414	3.5	%
U.S. Total	796,860		63.1	%	105,697	67.2	%

International
Industrial	72,409		5.7	%	10,260	6.5	%
Warehouse	119,335		9.5	%	18,365	11.7	%
Office	91,307		7.2	%	6,336	4.0	%
Retail (b)	175,815		13.9	%	16,340	10.4	%
Self Storage (net lease)	—		—	%	—	—	%
Other (c)	7,227		0.6	%	370	0.2	%
International Total	466,093		36.9	%	51,671	32.8	%

Total
Industrial	326,127		25.8	%	54,559	34.7	%
Warehouse	300,249		23.8	%	55,922	35.5	%
Office	242,852		19.2	%	16,050	10.2	%
Retail (b)	221,266		17.5	%	19,243	12.2	%
Self Storage (net lease)	61,708		4.9	%	5,810	3.7	%
Other (c)	110,751		8.8	%	5,784	3.7	%
Total (d)	$	1,262,953	100.0	%	157,368	100.0	%

________

(a)Includes square footage for vacant properties.

(b)Includes automotive dealerships.

(c)Includes ABR from tenants with the following property types: education facility, hotel (net lease), laboratory, theater, fitness facility, student housing (net lease), funeral home, restaurant and land.

(d)See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata.


						Investing for the long runTM \| 26

W. P. Carey Inc.

Real Estate – First Quarter 2022


Diversification by Tenant Industry

In thousands, except percentages. Pro rata. As of March 31, 2022.


	Total Net-Lease Portfolio
Industry Type	ABR		ABR %		Square Footage	Square Footage %
Retail Stores (a)	$	272,676	21.6	%	34,127	21.7	%
Consumer Services	108,941		8.6	%	8,092	5.1	%
Automotive	80,974		6.4	%	12,310	7.8	%
Beverage and Food	79,467		6.3	%	10,182	6.5	%
Grocery	73,081		5.8	%	7,756	4.9	%
Cargo Transportation	63,939		5.1	%	9,491	6.0	%
Healthcare and Pharmaceuticals	60,000		4.8	%	5,372	3.4	%
Construction and Building	50,964		4.0	%	9,077	5.8	%
Business Services	48,092		3.8	%	4,018	2.5	%
Capital Equipment	44,679		3.5	%	7,387	4.7	%
Durable Consumer Goods	44,568		3.5	%	10,276	6.5	%
Hotel and Leisure	42,100		3.3	%	2,214	1.4	%
Containers, Packaging, and Glass	40,121		3.2	%	6,713	4.3	%
Sovereign and Public Finance	40,082		3.2	%	3,241	2.1	%
High Tech Industries	31,275		2.5	%	3,315	2.1	%
Insurance	26,114		2.1	%	1,749	1.1	%
Banking	19,625		1.6	%	1,216	0.8	%
Non-Durable Consumer Goods	17,710		1.4	%	5,940	3.8	%
Aerospace and Defense	15,791		1.3	%	1,358	0.9	%
Metals	15,376		1.2	%	3,124	2.0	%
Telecommunications	15,152		1.2	%	1,479	0.9	%
Chemicals, Plastics, and Rubber	14,372		1.1	%	1,853	1.2	%
Media: Broadcasting and Subscription	13,227		1.0	%	784	0.5	%
Wholesale	12,988		1.0	%	2,005	1.3	%
Other (b)	31,639		2.5	%	4,289	2.7	%
Total (c)	$	1,262,953	100.0	%	157,368	100.0	%

________

(a)Includes automotive dealerships.

(b)Includes ABR from tenants in the following industries: media: advertising, printing, and publishing, oil and gas, environmental industries, consumer transportation, forest products and paper, real estate and electricity. Also includes square footage for vacant properties.

(c)See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata.


						Investing for the long runTM \| 27

W. P. Carey Inc.

Real Estate – First Quarter 2022


Diversification by Geography

In thousands, except percentages. Pro rata. As of March 31, 2022.


	Total Net-Lease Portfolio
Region	ABR		ABR %		Square Footage (a)	Square Footage %
U.S.
South
Texas	$	104,269	8.2	%	11,869	7.6	%
Florida	52,074		4.1	%	4,456	2.8	%
Georgia	24,737		2.0	%	3,512	2.2	%
Tennessee	24,072		1.9	%	3,980	2.5	%
Alabama	18,456		1.5	%	3,085	2.0	%
Other (b)	15,236		1.2	%	2,254	1.4	%
Total South	238,844		18.9	%	29,156	18.5	%
Midwest
Illinois	60,434		4.8	%	8,328	5.3	%
Minnesota	32,478		2.6	%	3,225	2.0	%
Indiana	26,525		2.1	%	4,734	3.0	%
Ohio	18,368		1.4	%	3,921	2.5	%
Wisconsin	17,225		1.4	%	3,420	2.2	%
Michigan	15,194		1.2	%	2,599	1.7	%
Other (b)	32,668		2.6	%	5,073	3.2	%
Total Midwest	202,892		16.1	%	31,300	19.9	%
East
North Carolina	36,174		2.9	%	8,098	5.2	%
Pennsylvania	31,079		2.4	%	3,673	2.3	%
New Jersey	22,953		1.8	%	1,235	0.8	%
Massachusetts	21,964		1.7	%	1,387	0.9	%
New York	18,881		1.5	%	2,221	1.4	%
South Carolina	14,850		1.2	%	4,088	2.6	%
Other (b)	47,714		3.8	%	8,009	5.1	%
Total East	193,615		15.3	%	28,711	18.3	%
West
California	68,666		5.4	%	6,445	4.1	%
Arizona	29,985		2.4	%	3,365	2.1	%
Other (b)	62,858		5.0	%	6,720	4.3	%
Total West	161,509		12.8	%	16,530	10.5	%
U.S. Total	796,860		63.1	%	105,697	67.2	%
International
Spain	64,573		5.1	%	5,078	3.2	%
Germany	60,910		4.8	%	6,440	4.1	%
Poland	59,059		4.7	%	7,959	5.1	%
United Kingdom	57,878		4.6	%	5,062	3.2	%
The Netherlands	55,719		4.4	%	6,990	4.4	%
Italy	26,625		2.1	%	2,386	1.5	%
France	20,138		1.6	%	1,685	1.1	%
Denmark	19,464		1.5	%	2,681	1.7	%
Croatia	17,084		1.4	%	1,726	1.1	%
Canada	15,246		1.2	%	2,376	1.5	%
Other (c)	69,397		5.5	%	9,288	5.9	%
International Total	466,093		36.9	%	51,671	32.8	%
Total (d)	$	1,262,953	100.0	%	157,368	100.0	%

________

(a)Includes square footage for vacant properties.

(b)Other properties within South include assets in Louisiana, Arkansas, Oklahoma and Mississippi. Other properties within Midwest include assets in Missouri, Kansas, Nebraska, Iowa, North Dakota and South Dakota. Other properties within East include assets in Virginia, Kentucky, Maryland, Connecticut, West Virginia, New Hampshire and Maine. Other properties within West include assets in Oregon, Utah, Colorado, Washington, Nevada, Hawaii, New Mexico, Idaho, Wyoming and Montana.

(c)Includes assets in Lithuania, Finland, Norway, Mexico, Hungary, Portugal, the Czech Republic, Austria, Sweden, Slovakia, Japan, Latvia and Estonia.

(d)See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata.


						Investing for the long runTM \| 28

W. P. Carey Inc.

Real Estate – First Quarter 2022


Contractual Rent Increases

In thousands, except percentages. Pro rata. As of March 31, 2022.


	Total Net-Lease Portfolio
Rent Adjustment Measure	ABR		ABR %		Square Footage	Square Footage %
(Uncapped) CPI	$	478,904	37.9	%	53,515	34.0	%
CPI-based	259,279		20.5	%	33,430	21.3	%
CPI-linked	738,183		58.4	%	86,945	55.3	%
Fixed	467,353		37.1	%	64,218	40.8	%
Other (a)	49,350		3.9	%	3,373	2.1	%
None	8,067		0.6	%	471	0.3	%
Vacant	—		—	%	2,361	1.5	%
Total (b)	$	1,262,953	100.0	%	157,368	100.0	%

________

(a)Represents leases attributable to percentage rent.

(b)See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata.


						Investing for the long runTM \| 29

W. P. Carey Inc.

Real Estate – First Quarter 2022


Same Store Analysis

Dollars in thousands. Pro rata.

Contractual Same Store Growth

Same store portfolio includes leases that were continuously in place during the period from March 31, 2021 to March 31, 2022. Excludes leases for properties that were acquired, sold or vacated, or were subject to lease renewals, extensions or modifications at any time that affected ABR during that period. For purposes of comparability, ABR is presented on a constant currency basis using exchange rates as of March 31, 2022.


	ABR
	As of
	Mar. 31, 2022		Mar. 31, 2021		Increase		% Increase
Property Type
Industrial	$	289,092	$	281,049	$	8,043	2.9	%
Warehouse	253,208		246,355		6,853		2.8	%
Office	229,831		225,310		4,521		2.0	%
Retail (a)	195,870		189,778		6,092		3.2	%
Self Storage (net lease)	61,711		59,441		2,270		3.8	%
Other (b)	88,763		87,125		1,638		1.9	%
Total	$	1,118,475	$	1,089,058	$	29,417	2.7	%

Rent Adjustment Measure
(Uncapped) CPI	$	450,128	$	435,761	$	14,367	3.3	%
CPI-based	226,406		221,178		5,228		2.4	%
CPI-linked	676,534		656,939		19,595		3.0	%
Fixed	385,813		378,261		7,552		2.0	%
Other (c)	48,315		46,045		2,270		4.9	%
None	7,813		7,813		—		—	%
Total	$	1,118,475	$	1,089,058	$	29,417	2.7	%

Geography
U.S.	$	708,706	$	691,553	$	17,153	2.5	%
Europe	388,097		376,507		11,590		3.1	%
Other International (d)	21,672		20,998		674		3.2	%
Total	$	1,118,475	$	1,089,058	$	29,417	2.7	%

Same Store Portfolio Summary
Number of properties	1,180
Square footage (in thousands)	134,298


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W. P. Carey Inc.

Real Estate – First Quarter 2022

Comprehensive Same Store Growth

Same store portfolio includes leased properties that were continuously owned and in place during the quarter ended March 31, 2021 through March 31, 2022. Excludes properties that were acquired, sold or listed as capital investments and commitments (see Investment Activity – Capital Investments and Commitments section) during that period. For purposes of comparability, same store pro rata rental income is presented on a constant currency basis using average exchange rates for the three months ended March 31, 2022. Same store pro rata rental income is a non-GAAP measure. See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of same store pro rata rental income and for details on how it is calculated.


	Same Store Pro Rata Rental Income
	Three Months Ended
	Mar. 31, 2022		Mar. 31, 2021		Increase		% Increase
Property Type
Industrial	$	72,451	$	71,047	$	1,404	2.0	%
Warehouse	63,897		61,393		2,504		4.1	%
Office	60,704		60,585		119		0.2	%
Retail (a)	48,689		45,717		2,972		6.5	%
Self Storage (net lease)	15,023		14,777		246		1.7	%
Other (b)	23,410		23,981		(571)		(2.4)	%
Total	$	284,174	$	277,500	$	6,674	2.4	%

Rent Adjustment Measure
(Uncapped) CPI	$	113,812	$	108,493	$	5,319	4.9	%
CPI-based	58,316		58,044		272		0.5	%
CPI-linked	172,128		166,537		5,591		3.4	%
Fixed	98,586		97,705		881		0.9	%
Other (c)	11,659		11,457		202		1.8	%
None	1,801		1,801		—		—	%
Total	$	284,174	$	277,500	$	6,674	2.4	%

Geography
U.S.	$	179,847	$	178,850	$	997	0.6	%
Europe	98,239		92,730		5,509		5.9	%
Other International (d)	6,088		5,920		168		2.8	%
Total	$	284,174	$	277,500	$	6,674	2.4	%

Same Store Portfolio Summary
Number of properties	1,196
Square footage (in thousands)	140,036


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W. P. Carey Inc.

Real Estate – First Quarter 2022

The following table presents a reconciliation from lease revenues to same store pro rata rental income:


	Three Months Ended
	Mar. 31, 2022		Mar. 31, 2021
Consolidated Lease Revenues
Total lease revenues – as reported	$	307,725	$	284,665
Income from direct financing leases and loans receivable	18,379		17,742
Less: Reimbursable tenant costs – as reported	(16,960)		(15,758)
Less: Income from secured loans receivable	(1,150)		(642)
	307,994		286,007

Adjustments for Pro Rata Ownership of Real Estate Joint Ventures:
Add: Pro rata share of adjustments from equity method investments	5,669		3,901
Less: Pro rata share of adjustments for noncontrolling interests	(22)		(22)
	5,647		3,879

Adjustments for Pro Rata Non-Cash Items:
Add: Above- and below-market rent intangible lease amortization	11,004		12,115
Less: Straight-line and other leasing and financing adjustments	(10,847)		(8,751)
Less: Adjustments for pro rata ownership	29		14
	186		3,378

Adjustment to normalize for (i) properties not continuously owned since January 1, 2021 and (ii) constant currency presentation for prior year quarter (e)	(29,653)		(15,764)

Same Store Pro Rata Rental Income	$	284,174	$	277,500

________

(a)Includes automotive dealerships.

(b)Includes ABR or same store pro rata rental income from tenants with the following property types: education facility, hotel (net lease), laboratory, theater, fitness facility, student housing (net lease), restaurant and land.

(c)Represents leases attributable to percentage rent.

(d)Includes assets in Canada, Mexico and Japan.

(e)This adjustment excludes amounts attributable to properties that were acquired, sold or listed as capital investments and commitments (see Investment Activity – Capital Investments and Commitments section) that were not continuously owned and in place during the quarter ended March 31, 2021 through March 31, 2022. In addition, for the three months ended March 31, 2021, an adjustment is made to reflect average exchange rates for the three months ended March 31, 2022 for purposes of comparability, since same store pro rata rental income is presented on a constant currency basis.


						Investing for the long runTM \| 32

W. P. Carey Inc.

Real Estate – First Quarter 2022


Leasing Activity

For the three months ended March 31, 2022, except ABR. Pro rata.


Lease Renewals and Extensions (a)										Expected Tenant Improvements ($000s)		Leasing Commissions ($000s)
			ABR
Property Type	Square Feet	Number of Leases	Prior Lease ($000s)			New Lease ($000s) (b)		Rent Recapture						Incremental Lease Term
Industrial	315,252	1	$	819		$	819	100.0	%	$	—	$	—	5.0 years
Warehouse	156,842	1	2,505			2,505		100.0	%	—		209		9.0 years
Office	—	—	—			—		—	%	—		—		N/A
Retail (c)	842,752	32	12,271			12,271		100.0	%	—		—		10.8 years
Self Storage (net lease)	—	—	—			—		—	%	—		—		N/A
Other	—	—	—			—		—	%	—		—		N/A
Total / Weighted Average (d)	1,314,846	34	$	15,595		$	15,595	100.0	%	$	—	$	209	10.2 years

Q1 Summary
Prior Lease ABR (% of Total Portfolio)			1.2		%


New Leases					Expected Tenant Improvements ($000s)		Leasing Commissions ($000s)
			ABR
Property Type	Square Feet	Number of Leases	New Lease ($000s) (b)						New Lease Term
Industrial	—	—	$	—	$	—	$	—	N/A
Warehouse	72,308	1	564		33		387		10.3 years
Office	—	—	—		—		—		N/A
Retail	—	—	—		—		—		N/A
Self Storage (net lease)	—	—	—		—		—		N/A
Other	—	—	—		—		—		N/A
Total / Weighted Average (e)	72,308	1	$	564	$	33	$	387	10.3 years

_______

(a)Excludes lease extensions for a period of one year or less.

(b)New lease amounts are based on in-place rents at time of lease commencement and exclude any free rent periods.

(c)Includes 30 leases with the same tenant totaling $11.2 million of ABR.

(d)Weighted average refers to the incremental lease term.

(e)Weighted average refers to the new lease term.


						Investing for the long runTM \| 33

W. P. Carey Inc.

Real Estate – First Quarter 2022


Lease Expirations

Dollars and square footage in thousands. Pro rata. As of March 31, 2022.


Year of Lease Expiration (a)	Number of Leases Expiring	Number of Tenants with Leases Expiring	ABR		ABR %		Square Footage	Square Footage %
Remaining 2022	25	19	$	24,465	1.9	%	1,587	1.0	%
2023 (b)	34	29	48,340		3.8	%	5,187	3.3	%
2024 (c)	44	38	96,381		7.6	%	12,401	7.9	%
2025	51	30	60,040		4.8	%	7,116	4.5	%
2026	41	29	58,300		4.6	%	8,248	5.2	%
2027	58	34	85,309		6.8	%	8,895	5.7	%
2028	42	24	63,359		5.0	%	5,572	3.5	%
2029	50	23	55,590		4.4	%	6,702	4.3	%
2030	27	23	65,025		5.2	%	5,520	3.5	%
2031	33	17	64,767		5.1	%	8,055	5.1	%
2032	40	20	54,239		4.3	%	7,227	4.6	%
2033	28	22	76,691		6.1	%	10,158	6.5	%
2034	47	15	75,574		6.0	%	7,765	4.9	%
2035	14	14	26,919		2.1	%	4,906	3.1	%
Thereafter (>2035)	261	104	407,954		32.3	%	55,668	35.4	%
Vacant	—	—	—		—	%	2,361	1.5	%
Total (d)	795		$	1,262,953	100.0	%	157,368	100.0	%

________

(a)Assumes tenants do not exercise any renewal options or purchase options.

(b)Includes ABR of $16.1 million from a tenant (Marriott Corporation) with a lease expiration in January 2023.

(c)Includes ABR of $38.8 million from a tenant (U-Haul Moving Partners, Inc. and Mercury Partners, LP) that holds an option to repurchase the 78 properties it is leasing in April 2024. There can be no assurance that such repurchase will be completed.

(d)See the Disclosures Regarding Non-GAAP and Other Metrics section in the Appendix for a description of pro rata.


						Investing for the long runTM \| 34

W. P. Carey Inc.

Investment Management

First Quarter 2022


						Investing for the long runTM \| 35

W. P. Carey Inc.

Investment Management – First Quarter 2022


Selected Information and Fee Summary – Managed Programs

Dollars and square footage in thousands. As of or for the three months ended March 31, 2022.


	CPA:18 – Global			CESH			Total
Selected Information
General
Year established	2013			2016
AUM – current quarter (a)	$	2,465,532		$	183,244		$	2,648,776
Net-lease AUM – current quarter	$	1,569,722		$	121,807		$	1,691,529
Fundraising status	Closed			Closed

Portfolio
Investment type	Net lease / Diversified REIT			Student Housing
Number of operating properties	66			—
Number of net-leased properties	52			3
Number of active build-to-suit projects	3			1
Number of tenants – net-leased properties	47			1
Square footage – net-leased properties	10,350			367
Occupancy (b)	99.4		%	100.0		%

Balance Sheet (Book Value)
Total assets	$	2,145,447		$	192,717
Total debt	$	1,179,301		$	69,116
Total debt / total assets	55.0		%	35.9		%

Fee Summary
Asset Management Fees
Asset management fee (% of average AUM, per annum)	0.50% (c)			1.00% (d)
Average AUM (of current quarter and prior quarter)	$	2,486,663		$	206,214		$	2,692,877
Asset management revenue – current quarter	$	3,058		$	362		$	3,420

Operating Partnership Interests (e)
Operating partnership interests (% of Available Cash)	10.00%			N/A
Earnings from equity method investments in the Managed Programs (profits interest) – current quarter	$	2,587		N/A			$	2,587

________

(a)Represents appraised value of real estate assets as of September 30, 2021 (plus cash and cash equivalents, less distributions payable as of March 31, 2022) for CPA:18 – Global. Represents appraised value of real estate assets as of December 31, 2021 (plus cash and cash equivalents as of March 31, 2022) for CESH. These values were used to calculate asset management fees during the three months ended March 31, 2022 in accordance with the respective advisory agreements.

(b)Represents occupancy for single-tenant net-leased properties.

(c)Based on average market value of assets. CPA:18 – Global has an option to pay asset management fees in cash or shares, under the terms of the advisory agreement with CPA:18 – Global. Asset management fees are recorded in Asset management and other revenue in our consolidated financial statements.

(d)Based on gross assets at fair value. In February and July 2020, CESH sold two student housing properties located in Lisbon, Portugal, and Madrid, Spain, for gross proceeds of $49.3 million and $30.4 million, respectively. In January, September and December 2021, CESH sold three student housing properties located in Valencia, Spain; Norwich, United Kingdom; and Porto, Portugal, for gross proceeds of $40.8 million, $126.8 million and $50.4 million, respectively (amounts reflect the applicable exchange rate on the date of the transaction).

(e)Available Cash means cash generated by operating partnership operations and investments, excluding cash from sales and refinancings, after the payment of debt service and other operating expenses, but before distributions to partners. Amounts are recorded in Earnings from equity method investments in our consolidated financial statements.


						Investing for the long runTM \| 36

W. P. Carey Inc.

Investment Management – First Quarter 2022


Summary of Future Liquidity Considerations for the Managed Programs

As of March 31, 2022.

Future Liquidity Strategies for the Managed Programs

The timeframes in the table below are based on general liquidation guidelines set forth in CPA:18 – Global’s and CESH’s respective offering documents. Ultimately, the liquidation of CPA:18 – Global is approved by its board of directors and the liquidation of CESH is determined by its general partner.


	General Liquidation Guideline
	CPA:18 – Global (a)	CESH
Timeframe	Beginning after the seventh anniversary of the closing of the initial public offering in 2015	Beginning five years after raising the minimum offering amount in 2016

Back-End Fees for / Interest in the Managed Programs

The overview below is intended to provide a summary of current disclosures regarding various back-end fees and interests that we may be entitled to upon each Managed Program’s liquidity event. Such a liquidity event for CPA:18 – Global is at the discretion of CPA:18 – Global’s board of directors and there is no assurance that any of the fees or interests described below will be realized. Please refer to CPA:18 – Global’s filings with the SEC for a complete description of its liquidity strategy.


	Back-End Fees and Interests
	CPA:18 – Global (a) (b)	CESH
Disposition Fees	Equal to the lesser of (i) 50% of the brokerage commission paid or (ii) 3% of the contract sales price of a property. (c)	N/A
Interest in Disposition Proceeds	Special general partner interest entitled to receive distributions of up to 15% of the net proceeds from the sale, exchange or other disposition of operating partnership assets remaining after the corporation has received a return of 100% of its initial investment in the operating partnership, through certain liquidity events or distributions, plus the 6% preferred return rate.	Available Cash (as defined in In “Principal Terms”), subject to any other limitations provided for herein, will be initially apportioned among the Limited Partners in proportion to their respective capital contributions and the General Partner as provided in connection with its Carried Interest and distributed. (d)
Purchase of Special GP Interest	Lesser of (i) 5.0x the distributions of the last completed fiscal year and (ii) the discounted value of expected future distributions from point of valuation to March 2025 using a discount rate used by the independent third-party valuation firm to determine the most recent appraisal.	N/A
Distribution Related to Ownership of Shares	5.7% ownership as of 3/31/2022	2.4% ownership as of 3/31/2022

________

(a)On February 27, 2022, our board of directors unanimously approved a definitive merger agreement pursuant to which CPA:18 – Global will merge with and into an indirect subsidiary of ours in a transaction valued at approximately $2.7 billion, adding approximately $2.0 billion of assets after approximately $700 million of proposed asset sales. The transaction has also been approved by CPA:18 – Global’s board of directors upon the unanimous recommendation and approval of a Special Committee consisting of CPA:18 – Global’s independent directors. On April 25, 2022, we filed a Form S-4/A, which was declared effective by the SEC on April 27, 2022. CPA:18 intends to mail the proxy statement/prospectus contained therein to CPA:18’s stockholders in connection with the Proposed Merger in early May 2022. The Proposed Merger and related transactions are subject to the satisfaction of a number of closing conditions, including approval by the stockholders of CPA:18 – Global. If this approval is obtained and the other closing conditions are met, we currently expect the transaction to close in early August 2022, although there can be no assurance that the transaction will be completed at such time or at all.

(b)Subject to the terms and conditions of the merger agreement, upon consummation of the Proposed Merger, we have agreed to waive certain back-end fees that we would have been entitled to receive from CPA:18 – Global upon its liquidation pursuant to the terms of our advisory agreement and partnership agreement with CPA:18 – Global.

(c)Not applicable to dispositions of individual assets.

(d)Order of distributions are as follows: (1) First, to a Limited Partner until it has received an amount equal to its total capital contributions or deemed capital contribution with respect to the Advisor Units in the case of the Advisor (or a wholly owned subsidiary of the Advisor); (2) Second, to a Limited Partner until such Limited Partner has received a cumulative, non-compounding, annual 10% return on its unreturned capital contributions (the “Preferred Return”); (3) Third, to the General Partner until the General Partner has received 20% of the aggregate amounts distributed pursuant to clause (2) and this clause (3); (4) Thereafter, 80% to such Limited Partner and 20% to the General Partner (together with the amounts received under clause (3), the General Partner’s “Carried Interest”). The Advisor’s capital contribution for purposes of the Partnership Agreement will be deemed to be the value of the Advisor Units upon their issuance.


						Investing for the long runTM \| 37

W. P. Carey Inc.

Appendix

First Quarter 2022


						Investing for the long runTM \| 38

W. P. Carey Inc.

Appendix – First Quarter 2022


Normalized Pro Rata Cash NOI

In thousands. From real estate.


	Three Months Ended Mar. 31, 2022
Consolidated Lease Revenues
Total lease revenues – as reported	$	307,725
Income from direct financing leases and loans receivable	18,379
Less: Income from secured loans receivable	(1,150)

Less: Consolidated Reimbursable and Non-Reimbursable Property Expenses
Reimbursable property expenses – as reported	16,960
Non-reimbursable property expenses – as reported	13,779
	294,215

Plus: NOI from Operating Properties
Hotel revenues	2,152
Hotel expenses	(2,173)
	(21)

Self-storage revenues	1,713
Self-storage expenses	(614)
	1,099

	295,293

Adjustments for Pro Rata Ownership of Real Estate Joint Ventures:
Add: Pro rata share of NOI from equity method investments	6,674
Less: Pro rata share of NOI attributable to noncontrolling interests	(22)
	6,652

	301,945

Adjustments for Pro Rata Non-Cash Items:
Add: Above- and below-market rent intangible lease amortization	11,004
Less: Straight-line and other leasing and financing adjustments	(10,847)
Add: Other non-cash items	358
	515

Pro Rata Cash NOI (a)	302,460

Adjustment to normalize for intra-period acquisition volume and dispositions (b)	1,350

Normalized Pro Rata Cash NOI (a)	$	303,810


						Investing for the long runTM \| 39

W. P. Carey Inc.

Appendix – First Quarter 2022

The following table presents a reconciliation from Net income from Real Estate attributable to W. P. Carey to Normalized pro rata cash NOI:


	Three Months Ended Mar. 31, 2022
Net Income from Real Estate Attributable to W. P. Carey
Net income from Real Estate attributable to W. P. Carey – as reported	$	146,858
Adjustments for Consolidated Operating Expenses
Add: Operating expenses – as reported	197,690
Less: Property expenses, excluding reimbursable tenant costs – as reported	(13,779)
Less: Operating property expenses – as reported	(2,787)
	181,124

Adjustments for Other Consolidated Revenues and Expenses:
Less: Lease termination income and other – as reported	(14,122)
Less: Reimbursable property expenses – as reported	(16,960)
Add: Other income and (expenses)	(7,368)
Add: Provision for income taxes	6,913
	(31,537)

Other Adjustments:
Add: Above- and below-market rent intangible lease amortization	11,004
Less: Straight-line and other leasing and financing adjustments	(10,847)
Add: Adjustments for pro rata ownership	6,692
Adjustment to normalize for intra-period acquisition volume and dispositions (b)	1,350
Less: Income from secured loans receivable	(1,150)
Add: Property expenses, excluding reimbursable tenant costs, non-cash	316
	7,365

Normalized Pro Rata Cash NOI (a)	$	303,810

________

(a)Pro rata cash NOI and normalized pro rata cash NOI are non-GAAP measures. See the Disclosures Regarding Non-GAAP and Other Metrics section that follows for a description of our non-GAAP measures and for details on how pro rata cash NOI and normalized pro rata cash NOI are calculated.

(b)For properties acquired and capital investments and commitments completed during the three months ended March 31, 2022, the adjustment modifies our pro rata share of cash NOI for the partial period with an amount estimated to be equivalent to the additional pro rata share of cash NOI necessary to reflect ownership for the full quarter. For properties disposed of during the three months ended March 31, 2022, the adjustment eliminates our pro rata share of cash NOI for the period.


						Investing for the long runTM \| 40

W. P. Carey Inc.

Appendix – First Quarter 2022


Adjusted EBITDA, Consolidated – Last Five Quarters

In thousands.


	Three Months Ended
	Mar. 31, 2022		Dec. 31, 2021		Sep. 30, 2021		Jun. 30, 2021		Mar. 31, 2021
Net income	$	156,993	$	99,612	$	138,586	$	120,283	$	51,641

Adjustments to Derive Adjusted EBITDA (a)
Depreciation and amortization	115,393		135,662		115,657		114,348		110,322
Interest expense	46,053		47,208		48,731		49,252		51,640
Other (gains) and losses (b)	(35,745)		28,461		(49,219)		(7,545)		41,188
Impairment charges	20,179		7,945		16,301		—		—
Gain on sale of real estate, net	(11,248)		(9,511)		(1,702)		(19,840)		(9,372)
Above- and below-market rent intangible lease amortization	11,004		15,082		12,004		14,384		12,115
Straight-line and other leasing and financing adjustments (c) (d)	(10,847)		(53,380)		(10,823)		(10,313)		(8,751)
Stock-based compensation expense	7,833		6,091		4,361		9,048		5,381
Provision for income taxes	7,083		5,052		8,347		9,298		5,789
Merger and other expenses (e) (f)	(2,322)		(563)		(908)		(2,599)		(476)
Other amortization and non-cash charges	379		385		386		391		411
	147,762		182,432		143,135		156,424		208,247

Adjustments for Pro Rata Ownership
Real Estate Joint Ventures:
Add: Pro rata share of adjustments for equity method investments (g)	9,426		16,136		5,144		4,923		11,445
Less: Pro rata share of adjustments for amounts attributable to noncontrolling interests	(23)		(23)		(23)		(22)		(22)
	9,403		16,113		5,121		4,901		11,423
Equity Method Investment in WLT: (h)
Less: Loss from equity method investment in WLT	—		926		1,376		4,005		4,483
Add: Distributions received from equity method investment in WLT	—		—		—		—		—
	—		926		1,376		4,005		4,483
Equity Method Investments in the Managed Programs: (i)
Add: Distributions received from equity method investments in the Managed Programs	520		2,142		477		454		432
Less: (Income) loss from equity method investments in the Managed Programs	(2,972)		(50)		(1,667)		90		153
	(2,452)		2,092		(1,190)		544		585
Adjusted EBITDA (j)	$	311,706	$	301,175	$	287,028	$	286,157	$	276,379

________

(a)Comprised of items that we do not consider to be part of our core operating business plan or representative of our overall long-term operating performance, based on a number of factors, including the nature of the item and/or the frequency with which it occurs. We believe that these adjustments provide a more representative view of EBITDA from our core operating business and allow for more meaningful comparisons.

(b)Primarily comprised of gains and losses on extinguishment of debt, the mark-to-market fair value of equity securities, and foreign currency transactions, as well as non-cash allowance for credit losses on loans receivable and direct financing leases. Amounts from period to period will not be comparable due to unpredictable fluctuations in these gains and losses.

(c)Straight-line rent adjustments relate to our net-leased properties subject to operating leases.

(d)Amount for the three months ended December 31, 2021 includes an adjustment to exclude $37.8 million of lease termination fees received from a tenant, as such amount was determined to be non-core income.

(e)Amounts for the three months ended March 31, 2022, September 30, 2021 and June 30, 2021 are primarily comprised of reversals of estimated liabilities for German real estate transfer taxes that were previously recorded in connection with mergers in prior years

(f)Amount for the three months ended March 31, 2022 includes $0.9 million of costs incurred in connection with the Proposed Merger.

(g)Amounts for the three months ended March 31, 2022, December 31, 2021 and March 31, 2021 include non-cash impairment charges of $4.6 million, $13.2 million and $6.8 million, respectively, recognized on certain equity method investments in real estate.

(h)We recorded income and distributions from our equity method investment in WLT on a one quarter lag. In January 2022, we reclassified our equity investment in WLT to equity securities at fair value within Other assets, net on our consolidated balance sheets. Any future dividends, if received, will be recognized within Non-operating income on our consolidated statements of income.

(i)Adjustments to include cash distributions received from the Managed Programs in place of our pro rata share of net income from our ownership in the Managed Programs. Distributions for the three months ended December 31, 2021 included a special distribution from CPA:18 – Global totaling $1.6 million.

(j)Adjusted EBITDA is a non-GAAP measure. See the Disclosures Regarding Non-GAAP and Other Metrics section that follows for a description of our non-GAAP measures.


						Investing for the long runTM \| 41

W. P. Carey Inc.

Appendix – First Quarter 2022


Adjusted EBITDA, Real Estate – Last Five Quarters

In thousands.


	Three Months Ended
	Mar. 31, 2022		Dec. 31, 2021		Sep. 30, 2021		Jun. 30, 2021		Mar. 31, 2021
Net income from Real Estate	$	146,856	$	94,684	$	130,897	$	114,725	$	44,594

Adjustments to Derive Adjusted EBITDA (a)
Depreciation and amortization	115,393		135,662		115,657		114,348		110,322
Interest expense	46,053		47,208		48,731		49,252		51,640
Other (gains) and losses (b)	(34,418)		27,131		(48,172)		(7,472)		42,189
Impairment charges	20,179		7,945		16,301		—		—
Gain on sale of real estate, net	(11,248)		(9,511)		(1,702)		(19,840)		(9,372)
Above- and below-market rent intangible lease amortization	11,004		15,082		12,004		14,384		12,115
Straight-line and other leasing and financing adjustments (c) (d)	(10,847)		(53,380)		(10,823)		(10,313)		(8,751)
Stock-based compensation expense	7,833		6,091		4,361		9,048		5,381
Provision for income taxes	6,913		5,331		7,827		9,119		6,426
Merger and other expenses (e) (f)	(2,325)		(599)		(908)		(2,599)		(491)
Other amortization and non-cash charges	379		385		386		391		411
	148,916		181,345		143,662		156,318		209,870

Adjustments for Pro Rata Ownership
Real Estate Joint Ventures:
Add: Pro rata share of adjustments for equity method investments (g)	9,426		16,136		5,144		4,923		11,445
Less: Pro rata share of adjustments for amounts attributable to noncontrolling interests	(23)		(23)		(23)		(22)		(22)
	9,403		16,113		5,121		4,901		11,423
Equity Method Investment in WLT: (h)
Less: Loss from equity method investment in WLT	—		926		1,376		4,005		4,483
Add: Distributions received from equity method investment in WLT	—		—		—		—		—
	—		926		1,376		4,005		4,483
Adjusted EBITDA – Real Estate (i)	$	305,175	$	293,068	$	281,056	$	279,949	$	270,370

________

(c)Straight-line rent adjustments relate to our net-leased properties subject to operating leases.

(f)Amount for the three months ended March 31, 2022 includes $0.9 million of costs incurred in connection with the Proposed Merger.

(i)Adjusted EBITDA is a non-GAAP measure. See the Disclosures Regarding Non-GAAP and Other Metrics section that follows for a description of our non-GAAP measures.


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W. P. Carey Inc.

Appendix – First Quarter 2022


Adjusted EBITDA, Investment Management – Last Five Quarters

In thousands.


	Three Months Ended
	Mar. 31, 2022		Dec. 31, 2021		Sep. 30, 2021		Jun. 30, 2021		Mar. 31, 2021
Net income from Investment Management	$	10,137	$	4,928	$	7,689	$	5,558	$	7,047

Adjustments to Derive Adjusted EBITDA (a)
Other (gains) and losses (b)	(1,327)		1,330		(1,047)		(73)		(1,001)
Provision for (benefit from) income taxes	170		(279)		520		179		(637)
Merger and other expenses	3		36		—		—		15
	(1,154)		1,087		(527)		106		(1,623)

Adjustments for Pro Rata Ownership
Equity Method Investments in the Managed Programs: (c)
Add: Distributions received from equity method investments in the Managed Programs	520		2,142		477		454		432
Less: (Income) loss from equity method investments in the Managed Programs	(2,972)		(50)		(1,667)		90		153
	(2,452)		2,092		(1,190)		544		585
Adjusted EBITDA – Investment Management (d)	$	6,531	$	8,107	$	5,972	$	6,208	$	6,009

________

(b)Primarily comprised of gains and losses from foreign currency movements and marketable securities. Amounts from period to period will not be comparable due to unpredictable fluctuations in these gains and losses.

(c)Adjustments to include cash distributions received from the Managed Programs in place of our pro rata share of net income from our ownership in the Managed Programs. Distributions for the three months ended December 31, 2021 included a special distribution from CPA:18 – Global totaling $1.6 million.

(d)Adjusted EBITDA is a non-GAAP measure. See the Disclosures Regarding Non-GAAP and Other Metrics section that follows for a description of our non-GAAP measures.


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W. P. Carey Inc.

Appendix – First Quarter 2022


Disclosures Regarding Non-GAAP and Other Metrics

Non-GAAP Financial Disclosures

FFO and AFFO

Due to certain unique operating characteristics of real estate companies, as discussed below, NAREIT, an industry trade group, has promulgated a non-GAAP measure known as FFO, which we believe to be an appropriate supplemental measure, when used in addition to and in conjunction with results presented in accordance with GAAP, to reflect the operating performance of a REIT. The use of FFO is recommended by the REIT industry as a supplemental non-GAAP measure. FFO is not equivalent to, nor a substitute for, net income or loss as determined under GAAP.

We define FFO, a non-GAAP measure, consistent with the standards established by the White Paper on FFO approved by the Board of Governors of NAREIT, as restated in December 2018. The White Paper defines FFO as net income or loss computed in accordance with GAAP, excluding gains or losses from sales of property, impairment charges on real estate, gains or losses on changes in control of interests in real estate and depreciation and amortization from real estate assets; and after adjustments for unconsolidated partnerships and jointly owned investments. Adjustments for unconsolidated partnerships and jointly owned investments are calculated to reflect FFO.

We also modify the NAREIT computation of FFO to adjust GAAP net income for certain non-cash charges, such as amortization of real estate-related intangibles, deferred income tax benefits and expenses, straight-line rent and related reserves, other non-cash rent adjustments, non-cash allowance for credit losses on loans receivable and direct financing leases, stock-based compensation, non-cash environmental accretion expense, amortization of discounts and premiums on debt and amortization of deferred financing costs. 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 have no impact on cash flows. Additionally, we exclude non-core income and expenses, such as gains or losses from extinguishment of debt and merger and acquisition expenses. We also exclude realized and unrealized gains/losses on foreign currency exchange transactions (other than those realized on the settlement of foreign currency derivatives), which are not considered fundamental attributes of our business plan and do not affect our overall long-term operating performance. We refer to our modified definition of FFO as AFFO. We exclude these items from GAAP net income to arrive at AFFO as they are not the primary drivers in our decision-making process and excluding these items provides investors a view of our portfolio performance over time and makes it more comparable to other REITs that are currently not engaged in acquisitions, mergers and restructuring, which are not part of our normal business operations. AFFO also reflects adjustments for unconsolidated partnerships and jointly owned investments. We use AFFO as one measure of our operating performance when we formulate corporate goals, evaluate the effectiveness of our strategies and determine executive compensation.

We believe that AFFO is a useful supplemental measure for investors to consider as we believe it will help them to better assess the sustainability of our operating performance without the potentially distorting impact of these short-term fluctuations. However, there are limits on the usefulness of AFFO to investors. For example, impairment charges and unrealized foreign currency losses that we exclude may become actual realized losses upon the ultimate disposition of the properties in the form of lower cash proceeds or other considerations. We use our FFO and AFFO measures as supplemental financial measures of operating performance. We do not use our FFO and AFFO measures as, nor should they be considered to be, alternatives to net income computed under GAAP, or as alternatives to net cash provided by operating activities computed under GAAP, or as indicators of our ability to fund our cash needs.

Same Store Pro Rata Rental Income

Same store pro rata rental income is a non-GAAP financial measure that is intended to reflect the performance of our net leased properties. We define this as contractual rents from our leased properties. Same store rental income excludes reimbursable tenant costs, amortization of intangibles and straight-line rent adjustments that are included in GAAP lease revenues. We present same store rental income on a pro rata basis to account for our share of income related to unconsolidated joint ventures and noncontrolling interests. We believe that same store pro rata rental income is a helpful measure that both investors and management can use to evaluate the financial performance of our leased properties. Same store pro rata rental income should not be considered as an alternative to lease revenues as an indication of our financial performance or to cash flows as a measure of liquidity or our ability to fund all needs. The method by which we calculate and present same store rental income and/or same store pro rata rental income may not be directly comparable to the way other REITs present such metrics.

Pro Rata Cash NOI

Cash net operating income (“cash NOI”) is a non-GAAP financial measure that is intended to reflect the performance of our net leased and operating properties. We define cash NOI as cash rents from our leased and operating properties less non-reimbursable property expenses. Cash NOI excludes amortization of intangibles and straight-line rent adjustments that are included in GAAP lease revenues. We present cash NOI on a pro rata basis (“pro rata cash NOI”) to account for our share of income related to unconsolidated joint ventures and noncontrolling interests. We believe that pro rata cash NOI is a helpful measure that both investors and management can use to evaluate the financial performance of our leased and operating properties and it allows for comparison of our operating performance between periods and to other REITs. Pro rata cash NOI should not be considered as an alternative to net income as an indication of our financial performance or to cash flows as a measure of liquidity or our ability to fund all needs. The method by which we calculate and present cash NOI and/or pro rata cash NOI may not be directly comparable to the way other REITs present such metrics.


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W. P. Carey Inc.

Appendix – First Quarter 2022

Normalized Pro Rata Cash NOI

Normalized pro rata cash NOI is pro rata cash NOI as defined above adjusted primarily to exclude our pro rata share of cash NOI from properties disposed of during the most recent quarter and to include a full quarter of pro rata cash NOI related to properties acquired or capital investments and commitments completed during the period, as applicable. We believe this measure provides a helpful representation of our net operating income from our in-place leased and operating properties.

Adjusted EBITDA

We believe that EBITDA is a useful supplemental measure to investors and analysts for assessing the performance of our business segments because (i) it removes the impact of our capital structure from our operating results and (ii) 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. Adjusted EBITDA as disclosed represents EBITDA, modified to include other adjustments to GAAP net income for certain non-cash charges, such as impairments, non-cash rent adjustments and unrealized gains and losses from our hedging activity. Additionally, we exclude gains and losses on sale of real estate, which are not considered fundamental attributes of our business plans and do not affect our overall long-term operating performance. We exclude these items from adjusted EBITDA as they are not the primary drivers in our decision-making process. Adjusted EBITDA reflects adjustments for unconsolidated partnerships and jointly owned investments. Our assessment of our operations is focused on long-term sustainability and not on such non-cash and non-core items, which may cause short-term fluctuations in net income but have no impact on cash flows. We believe that adjusted EBITDA is a useful supplemental measure to investors and analysts, although it does not represent net income that is computed in accordance with GAAP. Accordingly, adjusted EBITDA should not be considered as an alternative to net income or as an indicator of our financial performance. EBITDA and adjusted EBITDA as calculated by us may not be comparable to similarly titled measures of other companies.

Cash Interest Expense

Cash interest expense is a non-GAAP financial measure equal to interest expense calculated in accordance with GAAP, plus capitalized interest and other non-cash amortization expense, less amortization of deferred financing costs and debt premiums/discounts, adjusted for pro rata ownership. See the definition of cash interest expense coverage ratio below for a reconciliation of cash interest expense to its most directly compared GAAP measure, interest expense.

Cash Interest Expense Coverage Ratio

Cash interest expense coverage ratio is a non-GAAP financial measure representing the ratio of Adjusted EBITDA to cash interest expense on a trailing 12 months basis. We believe this ratio is useful to investors as a supplemental measure of our ability to satisfy fixed interest expense obligations. Cash interest expense for the trailing 12 months as of March 31, 2022 is equal to $186.1 million, comprised of interest expense calculated in accordance with GAAP ($191.2 million), plus capitalized interest ($2.6 million) and other non-cash amortization expense ($0.1 million), less amortization of deferred financing costs and debt premiums/discounts ($13.2 million), adjusted for pro rata ownership ($5.4 million).

Other Metrics

Pro Rata Metrics

This supplemental package contains certain metrics prepared on a pro rata basis. We refer to these metrics as pro rata metrics. We have a number of investments, usually with our affiliates, in which our economic ownership is less than 100%. On a full consolidation basis, we report 100% of the assets, liabilities, revenues and expenses of those investments that are deemed to be under our control or for which we are deemed to be the primary beneficiary, even if our ownership is less than 100%. Also, for all other jointly owned investments, which we do not control, we report our net investment and our net income or loss from that investment. On a pro rata basis, we generally present our proportionate share, based on our economic ownership of these jointly owned investments, of the assets, liabilities, revenues and expenses of those investments. Multiplying each of our jointly owned investments’ financial statement line items by our percentage ownership and adding or subtracting those amounts from our totals, as applicable, may not accurately depict the legal and economic implications of holding an ownership interest of less than 100% in our jointly owned investments.

ABR

ABR represents contractual minimum annualized base rent for our net-leased properties and reflects exchange rates as of March 31, 2022. If there is a rent abatement, we annualize the first monthly contractual base rent following the free rent period. ABR is not applicable to operating properties and is presented on a pro rata basis.


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