10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

þ	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended March 31, 2013
or
o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from                      to

Commission File Number: 001-13779

W. P. CAREY INC.

(Exact name of registrant as specified in its charter)

Maryland	45-4549771
(State of incorporation)	(I.R.S. Employer Identification No.)
50 Rockefeller Plaza
New York, New York	10020
(Address of principal executive offices)	(Zip Code)

Investor Relations (212) 492-8920

(212) 492-1100

(Registrant’s telephone numbers, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes þ No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes þ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer þ	Accelerated filer o		Non-accelerated filer o	Smaller reporting company o
		(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes o No þ

Registrant has 68,145,288 shares of common stock, $0.001 par value, outstanding at April 26, 2013.

INDEX

	Page No.
PART I - FINANCIAL INFORMATION
Item 1.  Financial Statements (Unaudited)
Consolidated Balance Sheets	2
Consolidated Statements of Income	3
Consolidated Statements of Comprehensive Income	4
Consolidated Statements of Equity	5
Consolidated Statements of Cash Flows	6
Notes to Consolidated Financial Statements	8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	34
Item 3. Quantitative and Qualitative Disclosures about Market Risk	49
Item 4. Controls and Procedures	51
PART II - OTHER INFORMATION
Item 6. Exhibits	52
Signatures	53

Forward-Looking Statements

This Quarterly Report on Form 10-Q (the “Report”), including Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) in Item 2 of Part I of this Report, contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. It is important to note that our actual results could be materially different from those projected in such forward-looking statements. You should exercise caution in relying on forward-looking statements as they involve known and unknown risks, uncertainties and other factors that may materially affect our future results, performance, achievements or transactions. Information on factors which could impact actual results and cause them to differ from what is anticipated in the forward-looking statements contained herein is included in this Report as well as in our other filings with the Securities and Exchange Commission (the “SEC”), including but not limited to those described in Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2012 as filed with the SEC on February 26, 2013 (the “2012 Annual Report”). Except as required by federal securities laws and the rules and regulations of the SEC, we do not undertake to revise or update any forward-looking statements.

Additionally, a description of our critical accounting estimates is included in the MD&A section of our 2012 Annual Report. There has been no significant change in our critical accounting estimates. All references to “Notes” throughout the document refer to the footnotes to the consolidated financial statements of the registrant in Part I, Item 1, Financial Statements (Unaudited).

W. P. Carey 3/31/2013 10-Q — 1

PART I

Item 1. Financial Statements

W. P. CAREY INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in thousands, except share and per share amounts)

	March 31, 2013			December 31, 2012
Assets
Investments in real estate:
Real estate, at cost (inclusive of amounts attributable to consolidated variable interest entities (“VIEs”) of $78,745 and $78,745, respectively)	$	2,373,912		$	2,334,488
Operating real estate, at cost	98,690			99,703
Accumulated depreciation (inclusive of amounts attributable to consolidated VIEs of $16,648 and $16,110, respectively)	(150,207		)	(136,068		)
Net investments in properties	2,322,395			2,298,123
Net investments in direct financing leases (inclusive of amounts attributable to consolidated VIEs of $23,900 and $23,921, respectively)	364,078			376,005
Assets held for sale	1,505			1,445
Equity investments in real estate and the Managed REITs	564,092			565,626
Net investments in real estate	3,252,070			3,241,199
Cash (inclusive of amounts attributable to consolidated VIEs of $10 and $17, respectively)	111,564			123,904
Due from affiliates	34,625			36,002
Goodwill	328,474			329,132
In-place lease, net (inclusive of amounts attributable to consolidated VIEs of $3,707 and $3,823, respectively)	468,132			447,278
Above-market rent, net (inclusive of amounts attributable to consolidated VIEs of $2,716 and $2,773, respectively)	267,845			279,885
Other intangible assets, net (inclusive of amounts attributable to consolidated VIEs of $287 and $297, respectively)	10,484			10,200
Other assets, net (inclusive of amounts attributable to consolidated VIEs of $4,733 and $4,232, respectively)	136,420			141,442
Total assets	$	4,609,614		$	4,609,042
Liabilities and Equity
Liabilities:
Non-recourse debt (inclusive of amounts attributable to consolidated VIEs of $30,040 and $30,326, respectively)	$	1,695,335		$	1,715,397
Senior credit facility	298,000			253,000
Accounts payable, accrued expenses and other liabilities (inclusive of amounts attributable to consolidated VIEs of $7,656 and $7,659, respectively) (Note 3)	317,520			265,132
Income taxes, net	20,847			24,959
Distributions payable	57,128			45,700
Total liabilities	2,388,830			2,304,188
Redeemable noncontrolling interest	7,404			7,531
Redeemable securities - related party (Note 3)	-			40,000
Commitments and contingencies (Note 11)
Equity:
W. P. Carey stockholders’ equity:
Common stock, $0.001 par value, 450,000,000 shares authorized; 69,178,667 and 68,901,933 shares issued and outstanding, respectively	69			69
Preferred stock, $0.001 par value, 50,000,000 shares authorized; None issued	-			-
Additional paid-in capital	2,184,387			2,175,820
Distributions in excess of accumulated earnings	(218,191		)	(172,182		)
Deferred compensation obligation	13,411			8,358
Accumulated other comprehensive loss	(9,414		)	(4,649		)
Less, treasury stock at cost, 416,408 and 416,408 shares, respectively	(20,270		)	(20,270		)
Total W. P. Carey stockholders’ equity	1,949,992			1,987,146
Noncontrolling interests	263,388			270,177
Total equity	2,213,380			2,257,323
Total liabilities and equity	$	4,609,614		$	4,609,042

See Notes to Consolidated Financial Statements.

W. P. Carey 3/31/2013 10-Q — 2

W. P. CAREY INC.

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(in thousands, except share and per share amounts)

	Three Months Ended March 31,
	2013			2012
Revenues
Lease revenues:
Rental income	$	65,785		$	14,652
Interest income from direct financing leases	9,512			2,126
Total lease revenues	75,297			16,778
Asset management revenue from affiliates	10,015			15,602
Structuring revenue from affiliates	6,342			7,638
Dealer manager fees	1,223			3,787
Reimbursed costs from affiliates	11,968			18,737
Other real estate income	8,541			5,772
	113,386			68,314
Operating Expenses
General and administrative	28,973			26,909
Reimbursable costs	11,968			18,737
Depreciation and amortization	30,876			6,463
Property expenses	5,152			2,072
Other real estate expenses	2,734			2,499
Impairment charges	3,279			-
	82,982			56,680
Other Income and Expenses
Other interest income	370			503
Net income from equity investments in real estate and the Managed REITs	10,656			13,986
Other income and (expenses)	1,091			306
Interest expense	(26,906		)	(7,280		)
	(14,789		)	7,515
Income from continuing operations before income taxes	15,615			19,149
Benefit from (provision for) income taxes	1,233			(1,695		)
Income from continuing operations	16,848			17,454
Discontinued Operations
(Loss) income from operations of discontinued properties	(148		)	120
Loss on sale of real estate	(931		)	(181		)
Gain on extinguishment of debt	70			-
Impairment charges	-			(5,724		)
Loss from discontinued operations, net of tax	(1,009		)	(5,785		)
Net Income	15,839			11,669
Net (income) loss attributable to noncontrolling interests	(1,708		)	578
Add: Net loss attributable to redeemable noncontrolling interest	50			43
Net Income Attributable to W. P. Carey	$	14,181		$	12,290
Basic Earnings Per Share
Income from continuing operations attributable to W. P. Carey	$	0.21		$	0.44
Loss from discontinued operations attributable to W. P. Carey	(0.01		)	(0.14		)
Net income attributable to W. P. Carey	$	0.20		$	0.30
Diluted Earnings Per Share
Income from continuing operations attributable to W. P. Carey	$	0.21		$	0.44
Loss from discontinued operations attributable to W. P. Carey	(0.01		)	(0.14		)
Net income attributable to W. P. Carey	$	0.20		$	0.30
Weighted Average Shares Outstanding
Basic	68,967,209			40,037,496
Diluted	69,975,293			40,487,652
Amounts Attributable to W. P. Carey
Income from continuing operations, net of tax	$	15,190		$	18,075
Loss from discontinued operations, net of tax	(1,009		)	(5,785		)
Net income attributable to W. P. Carey	$	14,181		$	12,290
Distributions Declared Per Share	$	0.820		$	0.565

See Notes to Consolidated Financial Statements.

W. P. Carey 3/31/2013 10-Q — 3

W. P. CAREY INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(in thousands)

	Three Months Ended March 31,
	2013			2012
Net Income	$	15,839		$	11,669
Other Comprehensive (Loss) Income
Foreign currency translation adjustments	(9,752		)	2,518
Realized and unrealized gain on derivative instruments	3,175			356
Change in unrealized depreciation on marketable securities	-			(3		)
	(6,577		)	2,871
Comprehensive Income	9,262			14,540
Amounts Attributable to Noncontrolling Interests
Net (income) loss	(1,708		)	578
Foreign currency translation adjustments	1,789			(331		)
Comprehensive loss attributable to noncontrolling interests	81			247
Amounts Attributable to Redeemable Noncontrolling Interest
Net loss	50			43
Foreign currency translation adjustments	23			(9		)
Comprehensive income attributable to redeemable noncontrolling interest	73			34
Comprehensive Income Attributable to W. P. Carey	$	9,416		$	14,821

See Notes to Consolidated Financial Statements.

W. P. Carey 3/31/2013 10-Q — 4

W. P. CAREY INC.

CONSOLIDATED STATEMENTS OF EQUITY

For the Three Months Ended March 31, 2013 and the Year Ended December 31, 2012

(in thousands, except share and per share amounts)

	W. P. Carey Stockholders
							Distributions				Accumulated
	Common Stock				Additional		in Excess of		Deferred		Other				Total
	No Par Value	$0.001 Par Value			Paid-in		Accumulated		Compensation		Comprehensive		Treasury		W. P. Carey		Noncontrolling
	Shares	Shares	Amount		Capital		Earnings		Obligation		Loss		Stock		Stockholders		Interests		Total
Balance at January 1, 2012	39,729,018	-	$	-	$	779,071	$	(95,046)	$	7,063	$	(8,507)	$	-	$	682,581	$	33,821	$	716,402
Exchange of shares of W. P. Carey & Co. LLC for shares of W. P. Carey Inc. in connection with the Merger	(39,834,827)	39,834,827	40		(40)		-		-		-		-		-		-		-
Shares issued to stockholders of CPA®:15 in connection with the Merger	-	28,170,643	28		1,380,333		-		-		-		-		1,380,361		-		1,380,361
Purchase of noncontrolling interests in connection with the Merger	-	-	-		(154)		-		-		-		-		(154)		237,513		237,359
Reclassification of Estate shareholders shares	-	-	-		(40,000)		-		-		-		-		(40,000)		-		(40,000)
Exercise of stock options and employee purchase under the employee share purchase plan	30,993	13,768	-		1,553		-		-		-		-		1,553		-		1,553
Cash proceeds on issuance of shares to third party, net	-	937,500	1		44,999		-		-		-		-		45,000		-		45,000
Grants issued in connection with services rendered	427,425	3,822	-		-		-		-		-		-		-		-		-
Shares issued under share incentive plans	238,728	27,044	-		646		-		-		-		-		646		-		646
Contributions from noncontrolling interests	-	-	-		-		-		-		-		-		-		3,291		3,291
Forfeitures of shares	(29,919)	-	-		-		-		-		-		-		-		-		-
Windfall tax benefits - share incentive plans	-	-	-		10,185		-		-		-		-		10,185		-		10,185
Stock-based compensation expense	-	-	-		25,067		-		971		-		-		26,038		-		26,038
Redemption value adjustment	-	-	-		(840)		-		-		-		-		(840)		-		(840)
Distributions to noncontrolling interests	-	-	-		-		-		-		-		-		-		(6,649)		(6,649)
Distributions declared ($2.44 per share)	-	-	-		-		(139,268)		324		-		-		(138,944)		-		(138,944)
Purchase of treasury stock from related parties (Note 3)	(561,418)	(416,408)	-		-		-		-		-		(45,270)		(45,270)		-		(45,270)
Cancellation of shares	-	(85,671)	-		(25,000)		-		-		-		25,000		-		-		-
Net income	-	-	-		-		62,132		-		-		-		62,132		607		62,739
Other comprehensive loss:
Foreign currency translation adjustments	-	-	-		-		-		-		6,127		-		6,127		1,594		7,721
Unrealized loss on derivative instruments	-	-	-		-		-		-		(2,262)		-		(2,262)		-		(2,262)
Change in unrealized appreciation on marketable securities	-	-	-		-		-		-		(7)		-		(7)		-		(7)
Balance at December 31, 2012	-	68,485,525	69		2,175,820		(172,182)		8,358		(4,649)		(20,270)		1,987,146		270,177		2,257,323
Cash proceeds from exercise of stock options	-	778	-		25		-		-		-		-		25		-		25
Shares issued under share incentive plans	-	275,956	-		(6,855)		-		-		-		-		(6,855)		-		(6,855)
Contributions from noncontrolling interests	-	-	-		-		-		-		-		-		-		2,463		2,463
Windfall tax benefits - share incentive plans	-	-	-		10,764		-		-		-		-		10,764		-		10,764
Stock-based compensation expense	-	-	-		4,633		-		4,516		-		-		9,149		-		9,149
Distributions to noncontrolling interests	-	-	-		-		-		-		-		-		-		(9,181)		(9,181)
Distributions declared ($0.82 per share)	-	-	-		-		(60,190)		537		-		-		(59,653)		-		(59,653)
Foreign currency translation	-	-	-		-		-		-		-		-		-		10		10
Net income	-	-	-		-		14,181		-		-		-		14,181		1,708		15,889
Other comprehensive loss:
Foreign currency translation adjustments	-	-	-		-		-		-		(7,940)		-		(7,940)		(1,789)		(9,729)
Unrealized gain on derivative instruments	-	-	-		-		-		-		3,175		-		3,175		-		3,175
Balance at March 31, 2013	-	68,762,259	$	69	$	2,184,387	$	(218,191)	$	13,411	$	(9,414)	$	(20,270)	$	1,949,992	$	263,388	$	2,213,380

See Notes to Consolidated Financial Statements.

W. P. Carey 3/31/2013 10-Q — 5

W. P. CAREY INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(in thousands)

	Three Months Ended March 31,
	2013		2012
Cash Flows — Operating Activities
Net income	$	15,839	$	11,669
Adjustments to net income:
Depreciation and amortization, including intangible assets and deferred financing costs	33,803		7,881
Income from equity investments in real estate and the Managed REITs in excess of distributions received	(991)		(1,716)
Straight-line rent, financing lease adjustments and amortization of rent-related intangibles	4,459		(1,135)
Amortization of deferred revenue	(2,359)		(2,359)
Loss on sale of real estate	931		181
Unrealized gain on foreign currency transactions and other	(1,002)		(212)
Realized loss (gain) on foreign currency transactions and other	100		(75)
Management income received in shares of Managed REITs	(9,942)		(6,889)
Impairment charges	3,279		5,724
Stock-based compensation expense	9,149		5,261
Deferred acquisition revenue received	8,561		8,722
Increase in structuring revenue receivable	(1,437)		(3,916)
(Decrease) increase in income taxes, net	(4,144)		1,317
Increase in prepaid taxes	(15,721)		(6,980)
Net changes in other operating assets and liabilities	(23,050)		(21,533)
Net Cash Provided by (Used in) Operating Activities	17,475		(4,060)
Cash Flows — Investing Activities
Distributions received from equity investments in real estate and the Managed REITs in excess of equity income	11,955		7,370
Capital contributions to equity investments	(1,418)		(90)
Purchases of real estate	(71,131)		-
Capital expenditures	(1,826)		(1,481)
Proceeds from sale of real estate	11,065		2,422
Funds placed in escrow	(27,128)		(722)
Funds released from escrow	50,749		1,954
Other investing activities, net	-		11
Net Cash (Used in) Provided by Investing Activities	(27,734)		9,464
Cash Flows — Financing Activities
Distributions paid	(45,746)		(22,792)
Contributions from noncontrolling interests	2,463		750
Distributions paid to noncontrolling interests	(9,232)		(992)
Scheduled payments of mortgage principal	(102,612)		(2,357)
Proceeds from mortgage financing	99,000		-
Proceeds from senior credit facility	55,000		15,000
Repayments of senior credit facility	(10,000)		-
Payment of financing costs and mortgage deposits, net of deposits refunded	(570)		(75)
Funds placed in escrow	43		-
Proceeds from exercise of stock options	25		4,249
Payment of tax withholding liability related to stock-based compensation awards	-		(2,553)
Windfall tax benefit associated with stock-based compensation awards	10,764		4,597
Net Cash Used in Financing Activities	(865)		(4,173)
Change in Cash and Cash Equivalents During the Period
Effect of exchange rate changes on cash	(1,216)		185
Net (decrease) increase in cash and cash equivalents	(12,340)		1,416
Cash and cash equivalents, beginning of period	123,904		29,297
Cash and cash equivalents, end of period	$	111,564	$	30,713

(Continued)

W. P. Carey 3/31/2013 10-Q — 6

W. P. CAREY INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Continued)

Supplemental noncash investing and financing activities:

During the three months ended March 31, 2013, we reclassified $5.6 million of properties from Net investment in direct financing leases to Real estate in connection with the restructuring of two leases (Note 4).

During the first quarter of 2013, we declared distributions totaling $57.1 million, which were paid on April 15, 2013.

See Notes to Consolidated Financial Statements.

W. P. Carey 3/31/2013 10-Q — 7

W. P. CAREY INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 1. Business and Organization

W. P. Carey Inc. (“W. P. Carey” and, together with its consolidated subsidiaries and predecessors, “we”, “us” or “our”) is a real estate investment trust (“REIT”) that seeks to achieve superior, risk-adjusted returns by providing long-term net-lease financing via sale-leaseback and build-to-suit transactions for companies worldwide. We invest primarily in commercial properties domestically and internationally. We earn revenue principally by leasing the properties we own to single corporate tenants, primarily on a triple-net leased basis, which requires each tenant to pay substantially all of the costs associated with operating and maintaining the property. We also earn revenue as the advisor to publicly-owned, non-listed REITs.

Since our founding in 1973, we have maintained a singular focus on providing investors with a steady source of income accompanied with capital preservation. Since 1979, we have sponsored a series of sixteen income-generating funds that invest in real estate, under the Corporate Property Associates brand name (the “CPA® REITs”). We are currently the advisor to Corporate Property Associates 16 – Global Incorporated (“CPA®:16 – Global”) and Corporate Property Associates 17 – Global Incorporated (“CPA®:17 – Global”). We are also the advisor to Carey Watermark Investors Incorporated (“CWI” and, together with CPA®:16 – Global and CPA®:17 – Global, the “Managed REITs”), which invests in lodging and lodging-related properties.

We were formed as a corporation under the laws of Maryland on February 15, 2012. On September 28, 2012, Corporate Property Associates 15 Incorporated (“CPA®:15”) merged with and into us, with CPA®:15 surviving as an indirect, wholly-owned subsidiary of ours (the “Merger”). In connection with the Merger, W. P. Carey & Co. LLC (our “predecessor”), which was formed under the laws of Delaware on July 15, 1996, completed an internal reorganization whereby our predecessor and its subsidiaries merged with and into us with W. P. Carey as the surviving corporation, succeeding to and continuing to operate the existing business of our predecessor (“REIT Reorganization”). Upon completion of the Merger and the REIT Reorganization, the shares of our predecessor were delisted from the New York Stock Exchange (“NYSE”) and canceled, and our common stock became listed on the NYSE under the same symbol, “WPC.”

Primary Reportable Segments

Real Estate Ownership — We own and invest in commercial properties primarily in the United States (“U.S.”) and Europe that are leased to companies, primarily on a triple-net lease basis. At March 31, 2013, our portfolio was comprised of our full or partial ownership interest in 422 properties. Substantially all of these properties, totaling approximately 39.0 million square feet, were net leased to 124 tenants, with an occupancy rate of approximately 98.8%. Collectively, at March 31, 2013, the Managed REITs owned all or a portion of over 703 properties, including certain properties in which we have an ownership interest. Substantially all of these properties, totaling approximately 78.6 million square feet, were net leased to 211 tenants, with an average occupancy rate of approximately 98.4%.

We earn lease revenues from our wholly-owned and co-owned real estate investments. In addition, we generate equity income through our investments in the shares of the Managed REITs (Note 6). Through our special member interests in the operating partnerships of the Managed REITs, we also participate in their cash flows (Note 3). Lastly, we earn other real estate revenues through our investments in self-storage facilities and a hotel in the U.S.

Investment Management — We earn revenue as the advisor to the Managed REITs. Under the respective advisory agreements with each of the Managed REITs, we perform various services, including the day-to-day management of the Managed REITs and transaction-related services. We structure and negotiate investments and debt placement transactions for the Managed REITs, for which we earn structuring revenue, and manage their portfolios of real estate investments, for which we earn asset management revenue.

We generate acquisition revenue when we structure and negotiate investments and related financing for the Managed REITs. We may also be entitled, subject to the approval by the boards of directors of certain of the Managed REITs, to fees for structuring loan refinancings. This loan refinancing revenue, together with the acquisition revenue, is referred to as structuring revenue. We earn ongoing asset management revenue from each Managed REIT, which is based on average invested assets and is calculated according to the advisory agreement for each Managed REIT. We may also earn revenue related to the disposition of properties, subject to subordination provisions, which will only be recognized as the relevant conditions are met. Such revenue may include subordinated disposition revenue when assets are sold as well as a percentage of the net cash proceeds distributable to stockholders from the disposition of properties, after recoupment by stockholders of their initial investment plus a specified preferred return. We may earn incentive or termination revenue in connection with providing liquidity to the stockholders of the Managed REITs, although these

W. P. Carey 3/31/2013 10-Q — 8

Notes to Consolidated Financial Statements

events do not occur every year. We will not receive a termination payment in circumstances where we receive subordinated incentive revenue.

Note 2. Basis of Presentation

Our interim consolidated financial statements have been prepared, without audit, in accordance with the instructions to Form 10-Q and, therefore, do not necessarily include all information and footnotes necessary for a fair statement of our consolidated financial position, results of operations and cash flows in accordance with accounting principles generally accepted in the U.S. (“GAAP”).

In the opinion of management, the unaudited financial information for the interim periods presented in this Report reflects all normal and recurring adjustments necessary for a fair statement of results of operations, financial position and cash flows. Our interim consolidated financial statements should be read in conjunction with our audited consolidated financial statements and accompanying notes for the year ended December 31, 2012, which are included in the 2012 Annual Report, as certain disclosures that would substantially duplicate those contained in the audited consolidated financial statements have not been included in this Report. Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in our consolidated financial statements and the accompanying notes. Actual results could differ from those estimates. The unaudited consolidated financial statements included in this Report have been retrospectively adjusted to reflect the disposition (or planned disposition) of certain properties as discontinued operations for all periods presented. Certain prior period amounts have been reclassified to conform to the current period presentation.

Basis of Consolidation

The consolidated financial statements reflect all of our accounts, including those of our majority-owned and/or controlled subsidiaries and our tenancy-in-common interests as described below. The portion of equity in a consolidated subsidiary that is not attributable, directly or indirectly, to us is presented as noncontrolling interests. All significant intercompany accounts and transactions have been eliminated.

We have investments in tenancy-in-common interests in various domestic and international properties. Consolidation of these investments is not required as such interests do not qualify as VIEs and do not meet the control requirement required for consolidation. Accordingly, we account for these investments using the equity method of accounting. We use the equity method of accounting because the shared decision-making involved in a tenancy-in-common interest investment provides us with significant influence on the operating and financial decisions of these investments.

We apply accounting guidance for consolidation of VIEs to certain entities in which the equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. Fixed price purchase and renewal options within a lease as well as certain decision-making rights within a loan can cause us to consider an entity a VIE. During the three months ended March 31, 2013, we did not identify any new VIEs.

Additionally, we own interests in single-tenant net leased properties leased to companies through noncontrolling interests in partnerships and limited liability companies that we do not control but over which we exercise significant influence. We account for these investments under the equity method of accounting. At times, the carrying value of our equity investments may fall below zero for certain investments. We intend to fund our share of the investments’ future operating deficits should the need arise. However, we have no legal obligation to pay for any of the liabilities of such investments nor do we have any legal obligation to fund operating deficits.

In November 2012, we filed a registration statement with the SEC to sell up to $1.0 billion of common stock of Corporate Property Associates 18 – Global Incorporated (“CPA®:18 – Global”) in an initial public offering plus up to an additional $400.0 million of its common stock under a dividend reinvestment plan. Through March 31, 2013, the financial activity of CPA®:18 – Global, which had no significant assets, liabilities or operations, was included in our consolidated financial statements.

W. P. Carey 3/31/2013 10-Q — 9

Notes to Consolidated Financial Statements

New Accounting Requirements

The following Accounting Standards Updates (“ASUs”) promulgated by Financial Accounting Standards Board (“FASB”) are applicable to us as indicated:

ASU 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities — In January 2013, the FASB issued an update to ASU 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. ASU 2013-01 clarifies that the scope of ASU 2011-11 applies to derivatives accounted for in accordance with Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with Section 210-20-45 or Section 815-10-45 of Topic 815 or subject to an enforceable master netting or similar arrangement. These amendments did not have a significant impact on our financial position or results of operations and are applicable to us for our interim and annual reports beginning in 2013 and shall be applied retrospectively.

ASU 2013-02, Other Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income — In February 2013, the FASB issued ASU 2013-02 requiring entities to disclose additional information about items reclassified out of accumulated other comprehensive income. This ASU impacts the form of our disclosures only, and is applicable to us for our interim and annual reports beginning in 2013 and shall be applied retrospectively. The related additional disclosures are located in Note 12.

ASU 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date, a consensus of the FASB Emerging Issues Task Force — In February 2013, the FASB issued ASU 2013-04, which requires entities to measure obligations resulting from joint and several liability arrangements (in our case, tenancy-in-common arrangements, Note 6) for which the total amount of the obligation is fixed as the sum of the amount the entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. This ASU is applicable to us for our interim and annual reports beginning in 2014 and shall be applied retrospectively; however, we elected to adopt this ASU early in 2013 and it did not have a significant impact on our financial position or results of operations for any of the periods presented.

ASU 2013-05, Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity — In March 2013, the FASB issued ASU 2013-05, which indicates that a cumulative translation adjustment (“CTA”) is attached to the parent’s investment in a foreign entity and should be released in a manner consistent with the derecognition guidance on investments in entities. Therefore, the entire amount of the CTA associated with the foreign entity would be released into earnings when there has been a sale of a foreign subsidiary or group of assets within a foreign subsidiary, a loss of a controlling financial interest upon deconsolidation of an investment in a foreign entity or a step acquisition in a foreign entity. This ASU will be applicable to us for derecognition transactions after December 31, 2013.

W. P. Carey 3/31/2013 10-Q — 10

Notes to Consolidated Financial Statements

Note 3. Agreements and Transactions with Related Parties

Advisory Agreements with the Managed REITs

We have advisory agreements with each of the Managed REITs pursuant to which we earn fees and are entitled to receive cash distributions. These agreements are scheduled to expire on September 30, 2013 unless otherwise renewed pursuant to their terms. The following table presents a summary of revenue earned and/or cash received from the Managed REITs included in the consolidated statements of income (in thousands):

	Three Months Ended March 31,
	2013		2012
Asset management revenue	$	10,015	$	15,602
Structuring revenue	6,342		7,638
Dealer manager fees	1,223		3,787
Reimbursed costs from affiliates	11,968		18,737
Distributions of Available Cash	7,891		6,974
Deferred revenue earned	2,123		2,123
	$	39,562	$	54,861

	Three Months Ended March 31,
	2013		2012
CPA®:15	$	-	$	7,368
CPA®:16 – Global	13,924		13,124
CPA®:17 – Global	14,756		32,983
CWI	10,860		1,146
Other	22		240
	$	39,562	$	54,861

The following table presents a summary of Due from affiliates (in thousands):

	March 31, 2013		December 31, 2012
Deferred acquisition fees receivable	$	21,530	$	28,655
Reimbursable costs	5,640		1,457
Organization and offering costs	5,066		4,920
Accounts receivable	2,371		181
Asset management fee receivable	18		789
	$	34,625	$	36,002

The following table presents a summary of amounts due to affiliates, which are included in Accounts payable, accrued expenses and other liabilities in the consolidated balance sheet (in thousands):

	March 31, 2013		December 31, 2012
Due to the Estate	$	40,000	$	-
Due to other affiliates	673		673
	$	40,673	$	673

Asset Management Revenue

We earn asset management revenue from each Managed REIT, which is based on average invested assets and is calculated according to the advisory agreement for each Managed REIT. For CPA®:15 prior to the Merger, this revenue generally totaled 1% per annum, with a portion of this revenue, or 0.5%, contingent upon the achievement of specific performance criteria. For CPA®:16 – Global, we earn asset management revenue of 0.5% of average invested assets. For CPA®:17 – Global, we earn asset management revenue ranging from 0.5% of average market value for long-term net leases and certain other types of real estate investments up to 1.75% of

W. P. Carey 3/31/2013 10-Q — 11

Notes to Consolidated Financial Statements

average equity value for certain types of securities. For CWI, we earn asset management revenue of 0.5% of the average market value of lodging-related investments. We also receive up to 10% of distributions of Available Cash, as defined in the respective advisory agreements, from the operating partnerships of each of the Managed REITs.

Under the terms of the advisory agreements, we may elect to receive cash or shares of stock for asset management revenue due from each Managed REIT. In 2013, we elected to receive all asset management revenue from each Managed REIT in its respective shares. For 2012, we elected to receive all asset management revenue from CPA®:15 prior to the Merger in cash, 50% of asset management revenue from CPA®:16 – Global in its shares with the remaining 50% payable in cash and all asset management revenue from CPA®:17 – Global and CWI in their respective shares.

Structuring Revenue

Under the terms of the advisory agreements, we earn revenue in connection with structuring and negotiating investments and related financing for the Managed REITs, which we call acquisition revenue. We may receive acquisition revenue of 4.5% of the total aggregate cost of long-term net lease investments made by each CPA® REIT. A portion of this revenue (generally 2.5%) is paid when the transaction is completed, while the remainder (generally 2%) is payable in annual installments ranging from three to eight years, provided the relevant CPA® REIT meets its performance criterion. For certain types of non-long term net lease investments acquired on behalf of CPA®:17 – Global, initial acquisition revenue may range from 0% to 1.75% of the equity invested plus the related acquisition revenue, with no deferred acquisition revenue being earned. For CWI, we earn initial acquisition revenue of 2.5% of the total investment cost of the properties acquired and loans originated by us not to exceed 6% of the aggregate contract purchase price of all investments and loans with no deferred acquisition revenue being earned. We may also be entitled, subject to the approval by the boards of directors of certain Managed REITs, to fees for structuring loan refinancings of up to 1% of the principal amount. This loan refinancing revenue, together with the acquisition revenue, is referred to as structuring revenue.

Unpaid transaction fees, including accrued interest, are included in Due from affiliates in the consolidated financial statements. Unpaid transaction fees bear interest at annual rates ranging from 5% to 7%.

Reimbursed Costs from Affiliates and Dealer Manager Fees

The Managed REITs reimburse us for certain costs, primarily broker/dealer commissions paid on behalf of the Managed REITs and marketing and personnel costs. Since October 1, 2012, when advisory agreements with the CPA® REITs were amended, personnel costs are allocated based on the revenues of each of the CPA® REITs rather than the method utilized before that date, which involved an allocation of time charges incurred by our personnel for each of the CPA® REITs. In addition, we earned a selling commission of up to $0.65 per share sold and a dealer manager fee of up to $0.35 per share sold from CPA®:17 – Global through its public offering, which was terminated in January 2013. We also receive a selling commission of up to $0.70 per share sold and a dealer manager fee of up to $0.30 per share sold from CWI. We re-allow all or a portion of the dealer manager fees to selected dealers in the offerings. Dealer manager fees that are not re-allowed are classified as Dealer manager fees.

Pursuant to its advisory agreement, CWI is obligated to reimburse us for all organization costs and a portion of offering costs incurred in connection with its offering, up to a maximum amount (excluding selling commissions and the dealer manager fee) of 2% of the gross proceeds of its offering and distribution reinvestment plan. Through March 31, 2013, we have incurred organization and offering costs on behalf of CWI of approximately $7.9 million. However, at March 31, 2013, CWI was only obligated to reimburse us $4.6 million of these costs because of the 2% limitation described above, and $3.5 million had been reimbursed as of that date.

Distributions of Available Cash and Deferred Revenue Earned

We receive distributions of our proportionate share of earnings up to 10% of the Available Cash from the Managed REITs, as defined in the respective advisory agreements, from their operating partnerships. In connection with the merger in the second quarter of 2011 between Corporate Property Associates 14 Incorporated (“CPA®:14”) and CPA®:16 – Global, we acquired a special member interest in CPA®:16 – Global’s operating partnership. We initially recorded this special member interest at its fair value, which is amortized into earnings over the expected period of performance considering the estimated life of the entity. Cash distributions of our proportionate share of earnings from the CPA®:16 – Global and CPA®:17 – Global operating partnerships as well as deferred revenue earned from our special member interest in CPA®:16 – Global’s operating partnership are recorded as Income from equity investments in real estate and the Managed REITs within the Real Estate Ownership segment. We have not yet earned or received any distributions of our proportionate share of earnings from CWI’s operating partnership because CWI has not yet generated Available Cash.

W. P. Carey 3/31/2013 10-Q — 12

Notes to Consolidated Financial Statements

Other Transactions with Affiliates

Transactions with Estate of Wm. Polk Carey

As discussed in the 2012 Annual Report, we entered into a share purchase agreement with the Estate of Wm. Polk Carey and its affiliated entities (collectively, the “Estate”) pursuant to which we agreed to repurchase up to an aggregate amount of $85.0 million of our common stock beneficially owned by the Estate, in three transactions between August 6, 2012 and March 31, 2013. As of December 31, 2012, we completed two transactions totaling $45.0 million. On March 28, 2013, we received an irrevocable notice (the “Notice”) from the Estate to exercise the final sale option. Accordingly, as the Notice resulted in a fixed and determinable obligation at March 31, 2013, we reclassified $40.0 million from Redeemable securities – related party to Accounts payable, accrued expenses and other liabilities. On April 4, 2013, we repurchased 616,971 shares of our common stock for $40.0 million from the Estate at a price of $64.83 per share.

The following table presents a reconciliation of our Redeemable securities – related party (in thousands):

	Three Months Ended
	March 31, 2013
Balance - beginning of period	$	40,000
Reclassification to a liability upon receipt of notice	(40,000)
Balance - end of period	$	-

Merger with CPA®:15

On September 28, 2012, CPA®:15 merged with and into us with CPA®:15 surviving as an indirect, wholly-owned subsidiary. In the Merger, we acquired CPA®:15’s portfolio, which was comprised of full or partial ownership in 305 properties, substantially all of which were triple-net leased to 76 tenants, and totaled approximately 27.0 million square feet, with an occupancy rate of approximately 99%.

We accounted for the Merger as a business combination under the acquisition method of accounting. The purchase price was allocated to the assets acquired and liabilities assumed, based upon their fair values. The fair values of the lease intangibles acquired were measured in a manner consistent with our purchase price allocation policy described in the 2012 Annual Report.

Other

We own interests in entities ranging from 3% to 95%, as well as jointly-controlled tenancy-in-common interests in properties, with the remaining interests generally held by affiliates, and own common stock in each of the Managed REITs. We consolidate certain of these investments and account for the remainder under the equity method of accounting.

Family members of one of our directors have an ownership interest in certain companies that own noncontrolling interests in one of our French majority-owned subsidiaries. These ownership interests are subject to substantially the same terms as all other ownership interests in the subsidiary companies.

In January 2013, our board of directors approved loans to CWI up to $50.0 million to be made at our discretion.

W. P. Carey 3/31/2013 10-Q — 13

Notes to Consolidated Financial Statements

Note 4. Net Investments in Properties

Real Estate

Real estate, which consists of land and buildings leased to others under operating leases and are carried at cost, is summarized as follows (in thousands):

	March 31, 2013			December 31, 2012
Land	$	521,032		$	509,530
Buildings	1,852,880			1,824,958
Less: Accumulated depreciation	(129,580		)	(116,075		)
	$	2,244,332		$	2,218,413

Real Estate Acquired — During the three months ended March 31, 2013, we entered into a domestic investment at a total cost of $72.4 million, including acquisition costs and net lease intangibles of $13.3 million (Note 7). We funded the investment in part with the escrowed proceeds of $25.3 million from a sale of property in December 2012 in an exchange transaction under Section 1031 of the Internal Revenue Code of 1986, as amended (the “Code”), and non-recourse mortgage financing of $36.5 million.

Assets disposed of and reclassified as held-for-sale during the three months ended March 31, 2013 are discussed in Note 13. Impairment charges recognized on these properties are discussed in Note 8. During this period, the U.S. dollar strengthened against the euro, as the end-of-period rate for the U.S. dollar in relation to the euro at March 31, 2013 decreased by 3.0% to $1.2821 from $1.3218 at December 31, 2012. The impact of this strengthening was a $15.3 million decrease in Real estate from December 31, 2012 to March 31, 2013. In connection with restructuring two leases, we reclassified $5.6 million of properties from Net investment in direct financing leases to Real estate during the quarter ended March 31, 2013 (Note 5).

Operating Real Estate

Operating real estate, which consists of our investments in 21 self-storage properties through Carey Storage Management LLC (“Carey Storage”) and our Livho Inc. (“Livho”) hotel subsidiary, at cost, is summarized as follows (in thousands):

	March 31, 2013			December 31, 2012
Land	$	21,962		$	22,158
Buildings	76,728			77,545
Less: Accumulated depreciation	(20,627		)	(19,993		)
	$	78,063		$	79,710

During the three months ended March 31, 2013, we recognized an impairment charge of $1.1 million on our hotel property to write down the property’s carrying value to its estimated fair value (Note 8).

Note 5. Finance Receivables

Assets representing rights to receive money on demand or at fixed or determinable dates are referred to as finance receivables. Our finance receivable portfolios consist of our Net investments in direct financing leases and deferred acquisition fees. Operating leases are not included in finance receivables as such amounts are not recognized as an asset in the consolidated balance sheets.

Deferred Acquisition Fees Receivable

As described in Note 3, a portion of our structuring revenue is due in equal annual installments ranging from three to eight years, provided the CPA® REITs meet their respective performance criteria. Unpaid deferred installments, including accrued interest, from all of the CPA® REITs were included in Due from affiliates in the consolidated financial statements.

Credit Quality of Finance Receivables

We generally seek investments in facilities that we believe are critical to a tenant’s business and that we believe have a low risk of tenant defaults. At both March 31, 2013 and December 31, 2012, none of our finance receivables were past due and we had not established any allowances for credit losses. There were no modifications of finance receivables for the three months ended March 31,

W. P. Carey 3/31/2013 10-Q — 14

Notes to Consolidated Financial Statements

2013 or for the year ended December 31, 2012. We evaluate the credit quality of our tenant receivables utilizing an internal 5-point credit rating scale, with 1 representing the highest credit quality and 5 representing the lowest. The credit quality evaluation of our tenant receivables was last updated in the first quarter of 2013. We believe the credit quality of our deferred acquisition fees receivable falls under category 1, as the CPA® REITs are expected to have the available cash to make such payments.

A summary of our finance receivables by internal credit quality rating is as follows (dollars in thousands):

	Number of Tenants at		Net Investments in Direct Financing Leases at
Internal Credit Quality Indicator	March 31, 2013	December 31, 2012	March 31, 2013		December 31, 2012
1	3	3	$	46,386	$	46,398
2	3	4	28,192		49,764
3	8	8	269,573		257,281
4	3	4	19,927		22,562
5	-	-	-		-
			$	364,078	$	376,005

During the three months ended March 31, 2013, we reclassified $5.6 million of properties from Net investment in direct financing leases to Real estate (Note 4) in connection with the restructuring of two leases.

Note 6. Equity Investments in Real Estate and the Managed REITs

We own interests in certain unconsolidated real estate investments and the Managed REITs. We account for our interests in these investments under the equity method of accounting (i.e., at cost, increased or decreased by our share of earnings or losses, less distributions, plus contributions and other adjustments required by equity method accounting, such as basis differences from other-than-temporary impairments). The following table presents net income from equity investments in real estate and the Managed REITs, which represents our proportionate share of the income or losses of these investments as well as certain adjustments related to other-than-temporary impairment charges and amortization of basis differences related to purchase accounting adjustments (in thousands):

	Three Months Ended March 31,
	2013		2012
Equity earnings from equity investments in the Managed REITs	$	22	$	1,848
Other-than-temporary impairment charges on our special member interest in CPA®:16 – Global operating partnership	(2,684)		(298)
Distributions of Available Cash (Note 3)	7,891		6,974
Deferred revenue earned (Note 3)	2,123		2,123
Equity in net income from the Managed REITs	7,352		10,647
Equity in net earnings from other equity investments	3,304		3,339
Total net income from equity investments in real estate and the Managed REITs	$	10,656	$	13,986

Managed REITs

We own interests in the Managed REITs and account for these interests under the equity method because, as their advisor and through our ownership in their common stock, we do not exert control over, but we do have the ability to exercise significant influence on, the Managed REITs.

W. P. Carey 3/31/2013 10-Q — 15

Notes to Consolidated Financial Statements

The following table sets forth certain information about our investments in the Managed REITs (dollars in thousands):

	% of Outstanding Shares Owned at		Carrying Amount of Investment at
Fund	March 31, 2013	December 31, 2012	March 31, 2013 (a)		December 31, 2012
CPA®:16 – Global (b)	18.456%	18.330%	$	294,339	$	296,301
CPA®:16 – Global operating partnership (c)	0.015%	0.015%	14,220		17,140
CPA®:17 – Global (d)	1.429%	1.290%	43,368		38,977
CPA®:17 – Global operating partnership (e)	0.015%	0.015%	-		-
CWI	0.447%	0.400%	1,147		774
CWI operating partnership	0.015%	0.015%	(47)		(47)
			$	353,027	$	353,145

(a)Includes asset management fees receivable, for which 171,808 shares, 175,316 shares and 15,236 shares of CPA®:16 – Global, CPA®:17 – Global and CWI, respectively, were issued during the second quarter of 2013.

(b)We received distributions of $6.2 million and $6.0 million from this investment during the three months ended March 31, 2013 and 2012, respectively.

(c)During the three months ended March 31, 2013 and 2012, we recognized other-than-temporary impairment charges of $2.7 million and $0.3 million, respectively, on this investment to reduce the carrying value of our interest in the investment to its estimated fair value (Note 8). In addition, we received distributions of $3.6 million and $4.3 million from this investment during the three months ended March 31, 2013 and 2012, respectively.

(d)We received distributions of $0.6 million and $0.3 million from this investment during the three months ended March 31, 2013 and 2012, respectively.

(e)We received distributions of $4.3 million and $2.7 million from this investment during the three months ended March 31, 2013 and 2012, respectively.

The following tables present preliminary combined summarized financial information for the Managed REITs. Certain prior year amounts have been retrospectively adjusted to reflect the disposition (or planned disposition) of certain properties as discontinued operations. Amounts provided are expected total amounts attributable to the Managed REITs and do not represent our proportionate share (in thousands):

	March 31, 2013			December 31, 2012
Real estate, net	$	6,193,018		$	6,049,926
Other assets	2,025,509			2,002,620
Total assets	8,218,527			8,052,546
Debt	(3,676,503		)	(3,509,394		)
Accounts payable, accrued expenses and other liabilities	(456,211		)	(450,362		)
Total liabilities	(4,132,714		)	(3,959,756		)
Redeemable noncontrolling interests	(21,094		)	(21,747		)
Noncontrolling interests	(167,140		)	(170,140		)
Stockholders’ equity	$	3,897,579		$	3,900,903

	Three Months Ended March 31,
	2013			2012
Revenues	$	178,685		$	212,890
Expenses	(171,253		)	(175,440		)
Net income from continuing operations	$	7,432		$	37,450
Net income attributable to the Managed REITs (a) (b)	$	10,352		$	33,197

(a)Inclusive of impairment charges recognized by the Managed REITs totaling $9.3 million and $1.2 million during the three months ended March 31, 2013 and 2012, respectively. These impairment charges reduced our income earned from these investments by approximately $1.7 million and $0.1 million during the three months ended March 31, 2013 and 2012, respectively.

(b)Amounts included net gains (losses) on sale of real estate recorded by the Managed REITs totaling $2.7 million and ($2.1) million during the three months ended March 31, 2013 and 2012, respectively.

W. P. Carey 3/31/2013 10-Q — 16

Notes to Consolidated Financial Statements

Interests in Unconsolidated Real Estate Investments

We own interests in single-tenant net leased properties that are leased to companies through noncontrolling interests (i) in partnerships and limited liability companies that we do not control but over which we exercise significant influence or (ii) as tenants-in-common subject to common control. Generally, the underlying investments are jointly-owned with affiliates. We account for these investments under the equity method of accounting.

The following table sets forth our ownership interests in our equity investments in real estate, excluding the Managed REITs, and their respective carrying values (dollars in thousands):

	Ownership Interest	Carrying Value at
Lessee	at March 31, 2013	March 31, 2013			December 31, 2012
Schuler A.G. (a) (b) (d)	67%	$	62,564		$	62,006
Hellweg Die Profi-Baumärkte GmbH & Co. KG (Hellweg 2) (a) (e)	40%	40,236			42,387
Advanced Micro Devices (c) (d)	33%	24,027			23,667
The New York Times Company (e)	18%	20,836			20,584
C1000 Logistiek Vastgoed B.V. (a) (c) (f)	15%	13,824			14,929
Del Monte Corporation (c) (d)	50%	7,969			8,318
U. S. Airways Group, Inc. (c)	75%	7,928			7,995
The Talaria Company (Hinckley) (d)	30%	7,842			7,702
The Upper Deck Company (d)	50%	7,187			7,198
Waldaschaff Automotive GmbH and Wagon Automotive Nagold GmbH (a) (f)	33%	6,173			6,323
Builders FirstSource, Inc. (d)	40%	5,097			5,138
PetSmart, Inc. (d)	30%	3,825			3,808
Consolidated Systems, Inc. (c) (d)	60%	3,249			3,278
Wanbishi Archives Co. Ltd. (a) (f) (g) (h)	3%	484			(736		)
SaarOTEC (a) (d) (h)	50%	(176		)	(116		)
		$	211,065		$	212,481

(a)The carrying value of the investment is affected by the impact of fluctuations in the exchange rate of the foreign currency.

(b)Represents a tenancy-in-common interest, under which the investment is under common control by us and our investment partner.

(c)These investments are tenancy-in-common interests whereby the property is encumbered by debt for which we are jointly and severally liable.  The co-obligors include our Managed REITs, and the aggregate amount due under the arrangements was approximately $241.6 million.  Of this amount, $113.6 million represents the aggregate amount we agreed to pay and is included within the carrying value of each of these investments, where applicable. The carrying value of these investments also includes the undepreciated cost of the related properties.

(d)This investment is jointly-owned with CPA®:16 – Global.

(e)This investment is jointly-owned with CPA®:16 – Global and CPA®:17 – Global.

(f)This investment is jointly-owned with CPA®:17 – Global.

(g)We acquired our interest in this investment in December 2012. In January 2013, we made a purchase accounting adjustment of $1.3 million to this investment.

(h)At March 31, 2013 and December 31, 2012, as applicable, we intended to fund our share of the investment’s future operating deficits if the need arose. However, we had no legal obligation to pay for any of the investment’s liabilities nor did we have any legal obligation to fund operating deficits.

Note 7. Intangible Assets and Liabilities and Goodwill

In connection with our acquisitions of properties, we have recorded net lease intangibles which are being amortized over periods ranging from one year to 40 years. In-place lease and above-market rent are included in In-place lease, net and Above-market rent, net in the consolidated financial statements.  Tenant relationship, trade name, management contracts and software license intangibles are included in Other intangible assets, net in the consolidated financial statements. Below-market rent, above-market ground lease, and

W. P. Carey 3/31/2013 10-Q —17

Notes to Consolidated Financial Statements

below-market purchase option intangibles are included in Accounts payable, accrued expenses and other liabilities in the consolidated financial statements.

In connection with our investment activity during the three months ended March 31, 2013, we have recorded net lease intangibles comprised as follows (dollars in thousands):

	Weighted-Average
	Life	Amount
Amortizable Intangible Assets
In-place lease	10.0	$	41,963
Amortizable Intangible Liabilities
Below-market rent	20.0	$	(28,646)

The following table presents a reconciliation of our goodwill (in thousands):

	Real Estate		Investment
	Ownership		Management		Total
Balance - beginning of period	$	265,525	$	63,607	$	329,132
Allocation of goodwill to dispositions of properties within the reporting unit(a)	(658)		-		(658)
Balance - end of period	$	264,867	$	63,607	$	328,474

(a)Amount is included in Loss on sale of real estate within discontinued operations.

W. P. Carey 3/31/2013 10-Q — 18

Notes to Consolidated Financial Statements

Intangible assets and liabilities and goodwill are summarized as follows (in thousands):

	March 31, 2013									December 31, 2012
	Gross						Net			Gross						Net
	Carrying			Accumulated			Carrying			Carrying			Accumulated			Carrying
	Amount			Amortization			Amount			Amount			Amortization			Amount
Amortizable Intangible Assets
Management contracts	$	32,765		$	(31,561	)	$	1,204		$	32,765		$	(31,283	)	$	1,482
Software license	600			-			600			-			-			-
	33,365			(31,561		)	1,804			32,765			(31,283		)	1,482
Lease Intangibles:
In-place lease	509,394			(41,262		)	468,132			474,629			(27,351		)	447,278
Tenant relationship	8,143			(3,438		)	4,705			8,149			(3,406		)	4,743
Above-market rent	290,676			(22,831		)	267,845			293,627			(13,742		)	279,885
	808,213			(67,531		)	740,682			776,405			(44,499		)	731,906
Unamortizable Goodwill and Indefinite-Lived Intangible Assets
Goodwill	328,474			-			328,474			329,132			-			329,132
Trade name	3,975			-			3,975			3,975			-			3,975
	332,449			-			332,449			333,107			-			333,107
	$	1,174,027		$	(99,092	)	$	1,074,935		$	1,142,277		$	(75,782	)	$	1,066,495
Amortizable Intangible Liabilities
Below-market rent	$	(114,497	)	$	5,399		$	(109,098	)	$	(86,171	)	$	3,227		$	(82,944	)
Above-market ground lease	(6,896		)	205			(6,691		)	(6,896		)	103			(6,793		)
	(121,393		)	5,604			(115,789		)	(93,067		)	3,330			(89,737		)
Unamortizable Intangible Liabilities
Below-market purchase option (a)	(16,711		)	-			(16,711		)	(16,711		)	-			(16,711		)
Total Intangible Liabilities	$	(138,104	)	$	5,604		$	(132,500	)	$	(109,778	)	$	3,330		$	(106,448	)

(a)The fair value of the below-market purchase option was equal to the residual value at the date of acquisition.

Net amortization of intangibles, including the effect of foreign currency translation, was $21.5 million and $1.3 million for the three months ended March 31, 2013 and 2012, respectively. Amortization of below-market rent, above-market rent and above-market ground lease intangibles is recorded as an adjustment to Lease revenues, while amortization of management contracts, software license, in-place lease and tenant relationship intangibles is included in Depreciation and amortization.

Based on the intangible assets and liabilities recorded at March 31, 2013, scheduled annual net amortization for the remainder of 2013, each of the next four years and thereafter is as follows (in thousands):

Years Ending December 31,	Total
2013 (remainder)	$	64,361
2014	81,140
2015	73,693
2016	71,759
2017	68,451
Thereafter	267,293
Total	$	626,697

W. P. Carey 3/31/2013 10-Q — 19

Notes to Consolidated Financial Statements

Note 8. Fair Value Measurements

For fair value measurements, the fair value of an asset is defined as the exit price, which is the amount that would either be received when an asset is sold or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance establishes a three-tier fair value hierarchy based on the inputs used in measuring fair value. These tiers are: Level 1, for which quoted market prices for identical instruments are available in active markets, such as money market funds, equity securities and U.S. Treasury securities; Level 2, for which there are inputs other than quoted prices included within Level 1 that are observable for the instrument, such as certain derivative instruments including interest rate caps and swaps; and Level 3, for securities that do not fall into Level 1 or Level 2 and for which little or no market data exists, therefore requiring us to develop our own assumptions.

Items Measured at Fair Value on a Recurring Basis

The methods and assumptions described below were used to estimate the fair value of each class of financial instrument. For significant Level 3 items we have also provided the unobservable inputs along with their weighted average ranges.

Money Market Funds — Our money market funds, which are included in Cash in the consolidated financial statements, are comprised of government securities and U.S. Treasury bills. These funds were classified as Level 1 as we used quoted prices from active markets to determine their fair values.

Derivative Assets — Our derivative assets, which are included in Other assets, net in the consolidated financial statements, are comprised of interest rate cap, foreign currency forward contracts and stock warrants (Note 9). The interest rate cap and foreign currency forward contracts were measured at fair value using readily observable market inputs, such as quotations on interest rates, and were classified as Level 2 as these instruments are custom, over-the-counter contracts with various bank counterparties that are not traded in the open market. The stock warrants were measured at fair value using internal valuation models that incorporate market inputs and our own assumptions about future cash flows. We classified these assets as Level 3 because these assets are not traded in an active market.

Derivative Liabilities — Our derivative liabilities, which are included in Accounts payable, accrued expenses and other liabilities in the consolidated financial statements, are comprised of interest rate swaps and foreign currency forward contracts (Note 9). These derivative instruments were measured at fair value using readily observable market inputs, such as quotations on interest rates. These derivative instruments were classified as Level 2 because they are custom, over-the-counter contracts with various bank counterparties that are not traded in an active market.

Redeemable Noncontrolling Interest — We account for the noncontrolling interest in W. P. Carey International, LLC (“WPCI”) as a redeemable noncontrolling interest (Note 12). We determined the valuation of the redeemable noncontrolling interest using widely accepted valuation techniques, including expected discounted cash flows of the investment as well as the income capitalization approach, which considers prevailing market capitalization rates. We classified this liability as Level 3. Unobservable inputs for WPCI include a discount for lack of marketability, a discount rate and EBITDA multiples with weighted average ranges of 20% – 30%, 22% – 26% and 3x – 5x, respectively. Significant increases or decreases in any one of these inputs in isolation would result in significant changes in the fair value measurement.

Our other financial instruments had the following carrying values and fair values as of the dates shown (in thousands):

		March 31, 2013				December 31, 2012
	Level	Carrying Value		Fair Value		Carrying Value		Fair Value
Non-recourse debt (a)	3	$	1,695,335	$	1,706,567	$	1,715,397	$	1,727,985
Senior Credit Facility	2	298,000		298,000		253,000		253,000
Deferred acquisition fees receivable (b)	3	21,531		25,330		28,654		33,632

(a)We determined the estimated fair value of our debt instruments using a discounted cash flow model with rates that take into account the credit of the tenants, where applicable, and interest rate risk. We also considered the value of the underlying collateral taking into account the quality of the collateral, the credit quality of the company, the time until maturity and the current market interest rate.

(b)We determined the estimated fair value of our deferred acquisition fees based on an estimate of discounted cash flows using two significant unobservable inputs, which are the leverage adjusted unsecured spread and an illiquidity adjustment with a weighted-average range of 275 – 325 bps and 50 – 100 bps, respectively. Significant increases or decreases to these inputs in isolation would result in a significant change in the fair value measurement.

W. P. Carey 3/31/2013 10-Q — 20

Notes to Consolidated Financial Statements

We estimated that our other financial assets and liabilities (excluding net investments in direct financing leases) had fair values that approximated their carrying values at both March 31, 2013 and December 31, 2012.

Items Measured at Fair Value on a Non-Recurring Basis (Including Impairment Charges)

We periodically assess whether there are any indicators that the value of our real estate investments may be impaired or that their carrying value may not be recoverable. For investments in real estate for which an impairment indicator is identified, we follow a two-step process to determine whether the investment is impaired and to determine the amount of the charge. First, we compare the carrying value of the real estate to the future undiscounted net cash flows that we expect the real estate will generate, including any estimated proceeds from the eventual sale of the real estate. If this amount is less than the carrying value, the real estate is considered to be impaired, and we then measure the loss as the excess of the carrying value of the real estate over the estimated fair value of the real estate, which is primarily determined using market information such as recent comparable sales or broker quotes. If relevant market information is not available or is not deemed appropriate, we perform a future net cash flow analysis, discounted for inherent risk associated with each investment. We determined that the significant inputs used to value these investments fall within Level 3. As a result of our assessments, we calculated impairment charges based on market conditions and assumptions that existed at the time. The valuation of real estate is subject to significant judgment and actual results may differ materially if market conditions or the underlying assumptions change.

The following tables present information about our other assets that were measured on a fair value basis (in thousands):

	Three Months Ended March 31, 2013				Three Months Ended March 31, 2012
	Total Fair Value		Total Impairment		Total Fair Value		Total Impairment
	Measurements		Charges		Measurements		Charges
Net investments in properties (a) (b)	$	3,350	$	2,208	$	-	$	-
Operating real estate (a) (c)	3,812		1,071		-		-
Total impairment charges included in expenses	7,162		3,279		-		-
Equity investments in real estate (d)	14,220		2,684		27,460		298
Total impairment charges included in income from continuing operations	21,382		5,963		27,460		298
Impairment charges included in discontinued operations (a) (e)	-		-		27,047		5,724
Total impairment charges	$	21,382	$	5,963	$	54,507	$	6,022

(a)These fair value measurements were developed by third-party sources, subject to our corroboration for reasonableness.

(b)During the three months ended March 31, 2013, we recognized an impairment charge of $2.2 million on a property previously leased to American Pad & Paper LLC, which is currently classified as Real estate on the consolidated balance sheet, in order to reduce the carrying value of the property to its estimated fair value, which approximated its estimated selling price. The guarantor of the lease filed for bankruptcy in March 2012 after the tenant stopped making lease payments. As a result, we terminated the tenant’s right to possess the property in January 2013 and entered into a contract to sell the property to a third party.  There can be no assurance that we will be able to sell this property at an acceptable price or at all.

(c)During the three months ended March 31, 2013, we recognized an impairment charge of $1.1 million on our hotel property, which is currently classified as Operating estate on the consolidated balance sheet, to write down the property’s carrying value to its fair value, which approximated its estimated selling price. There can be no assurance that we will be able to sell this property at an acceptable price or at all.

(d)During the three months ended March 31, 2013 and 2012, we incurred other-than-temporary impairment charges of $2.7 million and $0.3 million, respectively, on our investment in the special member interest in CPA®:16 – Global’s operating partnership to reduce its carrying value to its estimated fair value, which had declined. This investment’s fair value was obtained using an estimate of discounted cash flows using two significant unobservable inputs, which are the discount rate and the estimated general and administrative costs as a percentage of assets under management with a weighted average range of 12.75% – 15.75% and 35 bps – 45 bps, respectively. Significant increases or decreases to these inputs in isolation would result in a significant change in the fair value measurement. The valuation was also dependent upon the estimated date of a liquidity event for CPA®:16 – Global

W. P. Carey 3/31/2013 10-Q — 21

Notes to Consolidated Financial Statements

because cash flows attributable to this investment would cease upon such event. Therefore, the fair value of this investment may decline in the future as the estimated liquidation date approaches.

(e)During the three months ended March 31, 2012, we recorded impairment charges on properties sold totaling $5.7 million. These impairment charges, which are included in discontinued operations, were the result of reducing these properties’ carrying values to their estimated fair value in connection with and prior to anticipated sales.

Note 9. Risk Management and Use of Derivative Financial Instruments

In the normal course of our ongoing business operations, we encounter economic risk. There are three main components of economic risk that impact us: interest rate risk, credit risk and market risk. We are primarily subject to interest rate risk on our interest-bearing liabilities, including our Senior Credit Facility (Note 10). Credit risk is the risk of default on our operations and our tenants’ inability or unwillingness to make contractually required payments. Market risk includes changes in the value of our properties and related loans, as well as changes in the value of our other securities and the shares we hold in the Managed REITs due to changes in interest rates or other market factors. In addition, we own investments in the European Union and are subject to the risks associated with changing foreign currency exchange rates.

Use of Derivative Financial Instruments

When we use derivative instruments, it is generally to reduce our exposure to fluctuations in interest rates and foreign currency exchange rate movements. We have not entered, and do not plan to enter into, financial instruments for trading or speculative purposes. The primary risks related to our use of derivative instruments include default by a counterparty to a hedging arrangement on its obligation and a downgrade in the credit quality of a counterparty to such an extent that our ability to sell or assign our side of the hedging transaction is impaired.  While we seek to mitigate these risks by entering into hedging arrangements with counterparties that are large financial institutions that we deem to be creditworthy, it is possible that our hedging transactions, which are intended to limit losses, could adversely affect our earnings. Furthermore, if we terminate a hedging arrangement, we may be obligated to pay certain costs, such as transaction or breakage fees. We have established policies and procedures for risk assessment and the approval, reporting and monitoring of derivative financial instrument activities.

We measure derivative instruments at fair value and record them as assets or liabilities, depending on our rights or obligations under the applicable derivative contract. Derivatives that are not designated as hedges must be adjusted to fair value through earnings. For a derivative designated and qualified as a cash flow hedge, the effective portion of the change in fair value of the derivative is recognized in Other comprehensive income until the hedged item is recognized in earnings. The ineffective portion of a derivative’s change in fair value is immediately recognized in earnings.

W. P. Carey 3/31/2013 10-Q — 22

Notes to Consolidated Financial Statements

The following table sets forth certain information regarding our derivative instruments (in thousands):

Derivatives Designated		Asset Derivatives Fair Value at				Liability Derivatives Fair Value at
as Hedging Instruments	Balance Sheet Location	March 31, 2013		December 31, 2012		March 31, 2013			December 31, 2012
Foreign currency contracts	Other assets, net	$	335	$	-	$	-		$	-
Interest rate cap	Other assets, net	20		25		-			-
Foreign currency contracts	Accounts payable, accrued expenses and other liabilities	-		-		(73		)	(2,067		)
Interest rate swaps	Accounts payable, accrued expenses and other liabilities	-		-		(5,045		)	(5,825		)
Derivatives Not Designated
as Hedging Instruments
Stock warrants (a)	Other assets, net	2,000		1,720		-			-
Interest rate swaps (b)	Accounts payable, accrued expenses and other liabilities	-		-		(14,556		)	(16,686		)
Total derivatives		$	2,355	$	1,745	$	(19,674	)	$	(24,578	)

(a)In connection with the Merger, we acquired warrants from CPA®:15, which were granted by Hellweg 2 to CPA®:15. These warrants give us participation rights to any distributions made by Hellweg 2 and we are entitled to a cash distribution that equals a certain percentage of the liquidity event price of Hellweg 2, should a liquidity event occur.

(b)These interest rate swaps were acquired from CPA®:15 in the Merger. They do not qualify for hedge accounting; however, they do protect against fluctuations in interest rates related to the variable-rate debt we acquired in the Merger.

All derivative transactions with an individual counterparty are governed by a master International Swap and Derivatives Association agreement, which can be considered as a master netting arrangement; however, we report all our derivative instruments on a gross basis on the balance sheet. At March 31, 2013, no cash collateral has been posted nor received for any of our derivative positions.

The following tables present the impact of derivative instruments on the consolidated financial statements (in thousands):

	Amount of Gain (Loss) Recognized in
	Other Comprehensive (Loss) Income
	on Derivatives (Effective Portion) (a)
	Three Months Ended March 31,
Derivatives in Cash Flow Hedging Relationships	2013			2012
Interest rate swaps	$	828		$	291
Interest rate cap	(3		)	-
Foreign currency contracts	2,248			-
Total	$	3,073		$	291
	Amount of Gain (Loss) Reclassified
	from Other Comprehensive (Loss) Income
	into Income (Effective Portion) (a)
	Three Months Ended March 31,
Derivatives in Cash Flow Hedging Relationships	2013			2012
Interest rate swaps	$	(434	)	$	(335	)
Foreign currency contracts	47			-
Total	$	(387	)	$	(335	)

W. P. Carey 3/31/2013 10-Q — 23

Notes to Consolidated Financial Statements

		Amount of Gain (Loss) Recognized in
		Income on Derivatives
Derivatives Not in Cash Flow	Location of Gain (Loss)	Three Months Ended March 31,
Hedging Relationships	Recognized in Income	2013		2012
Interest rate swaps	Other income and (expenses)	$	1,679	$	-
Stock warrants	Other income and (expenses)	280		-
Total		$	1,959	$	-

(a)Amounts recognized in other comprehensive (loss) income and reclassified from other comprehensive (loss) income into income exclude net gains of $0.1 million recognized on unconsolidated jointly-owned investments for the three months ended March 31, 2013 and 2012.

See below for information on our purposes for entering into derivative instruments and for information on derivative instruments owned by unconsolidated entities, which are excluded from the tables above.

Interest Rate Swaps and Caps

We are exposed to the impact of interest rate changes primarily through our borrowing activities. To limit this exposure, we attempt to obtain mortgage financing on a long-term, fixed-rate basis. However, from time to time, we or our investment partners may obtain variable-rate mortgage loans and, as a result, may enter into interest rate swap agreements or interest rate cap agreements with counterparties. Interest rate swaps, which effectively convert the variable-rate debt service obligations of the loan to a fixed rate, are agreements in which one party exchanges a stream of interest payments for a counterparty’s stream of cash flow over a specific period. The notional, or face, amount on which the swaps are based is not exchanged. Interest rate caps limit the effective borrowing rate of variable-rate debt obligations while allowing participants to share in downward shifts in interest rates. Our objective in using these derivatives is to limit our exposure to interest rate movements.

The interest rate swaps that we had outstanding on our consolidated subsidiaries at March 31, 2013 that were designated as cash flow hedges are summarized as follows (currency in thousands):

		Notional		Effective	Effective	Expiration	Fair Value at
Description	Type	Amount		Interest Rate	Date	Date	March 31, 2013 (a)
3-Month Euro Interbank Offered Rate (“Euribor”)	“Pay-fixed” swap	€	6,266	4.2%	3/2008	3/2018	$	(1,247	)
1-Month London Interbank Offered rate (“LIBOR”)	“Pay-fixed” swap	$	4,380	3.0%	4/2010	4/2015	(221		)
1-Month LIBOR	“Pay-fixed” swap	$	33,484	3.0%	7/2010	7/2020	(3,306		)
1-Month LIBOR	“Pay-fixed” swap	$	6,858	4.4%	6/2012	3/2022	(58		)
1-Month LIBOR	“Pay-fixed” swap	$	25,494	3.9%	8/2012	8/2022	(153		)
3-Month Euribor	Interest rate cap	€	68,228	2.0%	12/2012	12/2014	20
1-Month LIBOR	“Pay-fixed” swap	$	3,471	3.7%	12/2012	2/2019	(25		)
3-Month Euribor	“Pay-fixed” swap	€	2,250	1.2%	3/2013	3/2020	(35		)
							$	(5,025	)

(a)Amounts are based on the exchange rate of the euro at March 31, 2013, where applicable.

W. P. Carey 3/31/2013 10-Q — 24

Notes to Consolidated Financial Statements

The interest rate swaps that we had outstanding on our consolidated subsidiaries at March 31, 2013 that were not designated as hedging instruments are summarized as follows (currency in thousands):

		Notional		Effective	Effective	Expiration	Fair Value at
Description (a) (b)	Type	Amount		Interest Rate	Date	Date	March 31, 2013 (c)
3-Month Euribor	“Pay-fixed” swap	€	100,000	3.7%	7/2006	7/2016	$	(13,273	)
3-Month Euribor	“Pay-fixed” swap	€	15,970	0.9%	4/2012	7/2013	(44		)
3-Month Euribor	“Pay-fixed” swap	€	6,388	4.4%	4/2008	10/2015	(416		)
3-Month Euribor	“Pay-fixed” swap	€	5,450	4.3%	4/2007	7/2016	(823		)
							$	(14,556	)

(a)These interest rate swaps were acquired from CPA®:15 in the Merger. They do not qualify for hedge accounting; however, they do protect against fluctuations in interest rates related to the variable-rate debt we acquired in the Merger.

(b)Notional and fair value amounts include, on a combined basis, portions attributable to noncontrolling interests totaling $33.5 million and $3.6 million, respectively.

(c)Amounts are based on the exchange rate of the euro at March 31, 2013, where applicable.

The interest rate caps that our unconsolidated jointly-owned investments had outstanding at March 31, 2013 and were designated as cash flow hedges are summarized as follows (currency in thousands):

	Ownership
	Interest in Investee		Notional				Effective	Expiration	Fair Value at
Description	at March 31, 2013	Type	Amount		Cap Rate	Spread	Date	Date	March 31, 2013
3-Month LIBOR (a)	17.8%	Interest rate cap	$	118,374	4.0%	4.8%	8/2009	8/2014	$	-
1-Month LIBOR (b)	79.0%	Interest rate cap	17,146		3.0%	4.0%	9/2009	4/2014	-
									$	-

(a)The applicable interest rate of the related loan was 2.8% at March 31, 2013; therefore, the interest rate cap was not being utilized at that date.

(b)The applicable interest rate of the related loan was 4.2% at March 31, 2013; therefore, the interest rate cap was not being utilized at that date

Foreign Currency Contracts

We are exposed to foreign currency exchange rate movements. We manage foreign currency exchange rate movements by generally placing our debt service obligation on an investment in the same currency as the tenant’s rental obligation to us. This reduces our overall exposure to the net cash flow from that investment. However, we are subject to foreign currency exchange rate movements to the extent of the difference in the timing and amount of the rental obligation and the debt service. We may also face challenges with repatriating cash from our foreign investments. We may encounter instances where it is difficult to repatriate cash because of jurisdictional restrictions or because repatriating cash may result in current or future tax liabilities. Realized and unrealized gains and losses recognized in earnings related to foreign currency transactions are included in Other income and (expenses) in the consolidated financial statements.

In order to hedge certain of our foreign currency cash flow exposures, we enter into foreign currency forward contracts. A foreign currency forward contract is a commitment to deliver a certain amount of currency at a certain price on a specific date in the future. By entering into forward contracts, we are locked into a future currency exchange rate for the term of the contract. These instruments guarantee that the exchange rate will not fluctuate beyond the range of the options’ strike prices.

W. P. Carey 3/31/2013 10-Q — 25

Notes to Consolidated Financial Statements

The following table presents the foreign currency derivative contracts we had outstanding at March 31, 2013, which were designated as cash flow hedges (currency in thousands, except strike price):

	Notional		Strike		Effective	Expiration	Fair Value at
Type	Amount		Price		Date	Date	March 31, 2013 (a)
Foreign currency forward contracts	€	47,669	$	1.28 - 1.30	5/2012	6/2013 - 6/2017	$	(68	)
Foreign currency forward contracts	€	8,700	$	1.35	12/2012	9/2017 - 3/2018	330
							$	262

(a)Amounts are based on the applicable exchange rate of the euro at March 31, 2013.

Other

Amounts reported in Other comprehensive income related to interest rate swaps will be reclassified to interest expense as interest payments are made on our variable-rate debt. Amounts reported in Other comprehensive income related to foreign currency contracts will be reclassified to Other income and (expenses) when the hedged foreign currency proceeds from foreign operations are repatriated to the U.S. At March 31, 2013, we estimate that an additional $2.1 million will be reclassified as interest expense during the next 12 months related to our interest rate swaps.

We measure our credit exposure on a counterparty basis as the net positive aggregate estimated fair value of our derivatives, net of collateral received, if any. No collateral was received as of March 31, 2013. At March 31, 2013, our total credit exposure and the maximum exposure to any single counterparty was $0.3 million, inclusive of noncontrolling interest.

Some of the agreements we have with our derivative counterparties contain certain credit contingent provisions that could result in a declaration of default against us regarding our derivative obligations if we either default or are capable of being declared in default on certain of our indebtedness. At March 31, 2013, we had not been declared in default on any of our derivative obligations. The estimated fair value of our derivatives that were in a net liability position at March 31, 2013 was $20.7 million, which included accrued interest but excluded any adjustment for nonperformance risk. If we had breached any of these provisions at March 31, 2013, we could have been required to settle our obligations under these agreements at their aggregate termination value of $21.8 million.

Portfolio Concentration Risk

Concentrations of credit risk arise when a group of tenants is engaged in similar business activities or is subject to similar economic risks or conditions that could cause them to default on their lease obligations to us. We regularly monitor our portfolio to assess potential concentrations of credit risk. While we believe our portfolio is reasonably well diversified, it does contain concentrations in excess of 10%, based on the percentage of our annualized contractual minimum base rent for the first quarter of 2013, in certain areas. There were no significant changes to our portfolio concentrations at March 31, 2013 as compared to December 31, 2012.

Except for our investment in CPA®:16 – Global, there were no significant concentrations, individually or in the aggregate, related to our unconsolidated jointly-owned investments. At March 31, 2013, we owned approximately 18.5% of CPA®:16 – Global, which had total assets at that date of approximately $3.3 billion consisting of a portfolio comprised of full or partial ownership interests in 494 properties, as well as two hotel properties and has certain concentrations within its portfolio, which are outlined in its periodic filings with the SEC.

Note 10. Debt

Senior Credit Facility

In February 2012, we amended and restated our existing credit agreement (the “Amended and Restated Credit Agreement”) to increase the maximum aggregate principal amount from $450.0 million to $625.0 million, which is comprised of a $450.0 million unsecured revolving credit facility (the “Revolver”) and a $175.0 million term loan facility (the “Term Loan Facility” and, together with the Revolver, the “Senior Credit Facility”). The Senior Credit Facility matures in December 2014, but may be extended by one year at our option, subject to the conditions provided in the Amended and Restated Credit Agreement. At our election, the principal amount available under the Senior Credit Facility may be increased by up to an additional $125.0 million, subject to the conditions provided in the Amended and Restated Credit Agreement.

W. P. Carey 3/31/2013 10-Q — 26

Notes to Consolidated Financial Statements

Availability under the Senior Credit Facility is dependent upon a number of factors, including the Unencumbered Property NOI, the Unencumbered Management EBITDA and the Total Unsecured Outstanding Indebtedness (each as defined in the Amended and Restated Credit Agreement). At March 31, 2013, availability under the Senior Credit Facility was $625.0 million, of which we had drawn $298.0 million, including $175.0 million under the Term Loan. At March 31, 2013, we paid interest on the Senior Credit Facility at an annual interest rate consisting of LIBOR plus 1.75%. In addition, as of March 31, 2013, our lenders had issued letters of credit totaling $5.4 million on our behalf in connection with certain contractual obligations, which reduce amounts that may be drawn under the Revolver. The Revolver is currently expected to be utilized primarily for potential new investments, repayment of existing debt and general corporate purposes.

The Amended and Restated Credit Agreement stipulates several financial covenants that require us to maintain certain ratios and benchmarks at the end of each quarter as defined in the Amended and Restated Credit Agreement. We were in compliance with all of these covenants at March 31, 2013.

Non-Recourse Debt

Non-recourse debt consists of mortgage notes payable, which are collateralized by the assignment of real property, and direct financing leases, with an aggregate carrying value of approximately $2.0 billion at March 31, 2013. Our mortgage notes payable had fixed annual interest rates ranging from 2.7% to 10.0% and variable effective annual interest rates ranging from 1.2% to 8.5% with maturity dates ranging from 2013 to 2026 at March 31, 2013.

During the three months ended March 31, 2013, in connection with our real estate acquisition (Note 4), we obtained a non-recourse mortgage loan of $36.5 million with an annual interest rate of 4.05% and term of 10 years.

During the three months ended March 31, 2013, we refinanced two maturing non-recourse mortgage loans totaling $41.5 million with new financing totaling $62.5 million. These new mortgage loans have a weighted-average annual interest rate and term of 5.0% and 10 years, respectively.

Scheduled Debt Principal Payments

Scheduled debt principal payments during the remainder of 2013, for each of the next four calendar years following December 31, 2013, and thereafter are as follows (in thousands):

Years Ending December 31,	Total (a)
2013 (remainder)	$	83,850
2014  (b)	672,288
2015	230,869
2016	87,902
2017	126,980
Thereafter through 2026	805,720
	2,007,609
Unamortized discount	(14,274		)
Total	$	1,993,335

(a)Certain amounts are based on the applicable foreign currency exchange rate at March 31, 2013.

(b)Includes $123.0 million outstanding under our Revolver and $175.0 million outstanding under our Term Loan Facility at March 31, 2013, each of which is scheduled to mature in 2014 unless extended pursuant to its terms.

Note 11. Commitments and Contingencies

At March 31, 2013, we were not involved in any material litigation.

Various claims and lawsuits arising in the normal course of business are pending against us. The results of these proceedings are not expected to have a material adverse effect on our consolidated financial position or results of operations.

W. P. Carey 3/31/2013 10-Q — 27

Notes to Consolidated Financial Statements

Note 12. Stock-Based Compensation and Equity

Stock-Based Compensation

We maintain several stock-based compensation plans, which are more fully described in the 2012 Annual Report. There have been no significant changes to the terms and conditions of any of our stock-based compensation plans or arrangements during 2013, other than as described below.

The total compensation expense (net of forfeitures) for our stock-based compensation plans was $9.1 million and $5.2 million for the three months ended March 31, 2013 and 2012, respectively, which is included in General and administrative expenses in the consolidated financial statements.

Nonvested restricted stock, restricted stock units (“RSUs”) and performance stock units (“PSUs”) at March 31, 2013 and changes during the three months ended March 31, 2013 were as follows:

	Restricted Stock and RSU Awards				PSU Awards
			Weighted Average				Weighted Average
			Grant Date				Grant Date
	Shares		Fair Value		Shares		Fair Value
Nonvested at January 1, 2013	594,194		$	37.15	999,513		$	34.55
Granted (a)	166,554		56.67		85,900		84.38
Vested (b)	(233,098	)	37.18		(323,872	)	39.46
Forfeited	(12,501	)	38.49		(25,000	)	50.71
Adjustment (c)	-		-		317,931		52.64
Nonvested at March 31, 2013 (d)	515,149		$	44.51	1,054,472		$	54.89

(a)The grant date fair value of RSUs are based on our stock price on the date of grant.  The grant date fair value of PSUs were determined by utilizing a Monte Carlo simulation model to generate a range of possible future stock prices for both us and the plan defined peer index over the three-year performance period. To estimate the fair value of PSUs granted during the three months ended March 31, 2013, we used a risk-free interest rate of 0.37% and an expected volatility rate of 25.36% (the plan defined peer index assumes 24.83%) and assumed a dividend yield of zero.

(b)The total fair value of shares vested during the three months ended March 31, 2013 was $24.1 million.

(c)Vesting and payment of the PSUs is conditional on certain company and market performance goals being met during the relevant three-year performance period. The ultimate number of PSUs to be vested will depend on the extent to which the performance goals are met and can range from zero to three times the original awards. Pursuant to a review of our current and expected performance versus the performance goals, we revised our estimate of the ultimate number of certain of the PSUs to be vested. As a result, we recorded adjustments in 2013 to reflect the number of shares expected to be issued when the PSUs vest.

(d)At March 31, 2013, total unrecognized compensation expense was approximately $27.9 million related to nonvested PSUs and $21.6 million related to nonvested RSUs.

During the three months ended March 31, 2013, the total number of stock options exercised was 44,897. The aggregate intrinsic value of stock options exercised during first quarter was $1.3 million.

W. P. Carey 3/31/2013 10-Q — 28

Notes to Consolidated Financial Statements

Earnings Per Share

Under current authoritative guidance for determining earnings per share, all unvested share-based payment awards that contain non-forfeitable rights to distributions are considered to be participating securities and therefore are included in the computation of earnings per share under the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common shares and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Our unvested RSUs contain rights to receive non-forfeitable distribution equivalents, and therefore we apply the two-class method of computing earnings per share. The calculation of earnings per share below excludes the income attributable to the unvested RSUs from the numerator. The following table summarizes basic and diluted earnings (in thousands, except share amounts):

	Three Months Ended March 31,
	2013			2012
Net income attributable to W. P. Carey	$	14,181		$	12,290
Allocation of distribution equivalents paid on unvested RSUs in excess of net income	(105		)	(191		)
Net income – basic	14,076			12,099
Income effect of dilutive securities, net of taxes	(27		)	(24		)
Net income – diluted	$	14,049		$	12,075
Weighted average shares outstanding – basic	68,967,209			40,037,496
Effect of dilutive securities	1,008,084			450,156
Weighted average shares outstanding – diluted	69,975,293			40,487,652

There were no potentially dilutive securities excluded from the computation of diluted earnings per share because their effect would have been anti-dilutive for the three months ended March 31, 2013 and 2012.

Redeemable Noncontrolling Interest

We account for a former employee’s noncontrolling interest in WPCI as a redeemable noncontrolling interest, as we have an obligation to repurchase the interest from that individual, subject to certain conditions. The individual’s interest is reflected at estimated redemption value for all periods presented.

The following table presents a reconciliation of redeemable noncontrolling interest (in thousands):

	Three Months Ended March 31,
	2013			2012
Balance - beginning of period	$	7,531		$	7,700
Redemption value adjustment	-			79
Net loss	(50		)	(43		)
Distributions	(54		)	(816		)
Change in other comprehensive (loss) income	(23		)	9
Balance - end of period	$	7,404		$	6,929

W. P. Carey 3/31/2013 10-Q — 29

Notes to Consolidated Financial Statements

Reclassifications Out of Accumulated Other Comprehensive Loss

The following table presents a reconciliation of changes in accumulated other comprehensive loss by component (in thousands):

	Three Months Ended March 31, 2013
	Gains and Losses on Derivative Instruments			Foreign Currency Translation Adjustments			Unrealized Gains and Losses on Marketable Securities		Total
Balance - beginning of period	$	(7,508	)	$	2,828		$	31	$	(4,649	)
Other comprehensive income before reclassifications	2,685			(7,940		)	-		(5,255		)
Amounts reclassified from accumulated other comprehensive income:
Interest expense	434			-			-		434
Other income and (expense)	(47		)	-			-		(47		)
Net income from equity investments in real estate and the Managed REITs	103			-			-		103
Total	490			-			-		490
Net current period other comprehensive income (loss)	3,175			(7,940		)	-		(4,765		)
Balance - end of period	$	(4,333	)	$	(5,112	)	$	31	$	(9,414	)

	Three Months Ended March 31, 2012
	Gains and Losses on Derivative Instruments			Foreign Currency Translation Adjustments			Unrealized Gains and Losses on Marketable Securities			Total
Balance - beginning of period	$	(5,246	)	$	(3,299	)	$	38		$	(8,507	)
Other comprehensive income before reclassifications	(54		)	2,178			(3		)	2,121
Amounts reclassified from accumulated other comprehensive income:
Interest expense	335			-			-			335
Net income from equity investments in real estate and the Managed REITs	75			-			-			75
Total	410			-			-			410
Net current period other comprehensive income (loss)	356			2,178			(3		)	2,531
Balance - end of period	$	(4,890	)	$	(1,121	)	$	35		$	(5,976	)

Note 13. Discontinued Operations

From time to time, we may dispose of a property when it is vacant as a result of tenants vacating space, tenants electing not to renew their leases, tenant insolvency, or lease rejection in the bankruptcy process. In such cases, we assess whether we can obtain the highest value from the property by selling it, as opposed to re-leasing it. When it is appropriate to do so, upon the evaluation of the disposition of long-lived assets, we classify the property as an asset held for sale on our consolidated balance sheet and the current and prior period results of operations of the property are reclassified as discontinued operations.

W. P. Carey 3/31/2013 10-Q — 30

Notes to Consolidated Financial Statements

The results of operations for properties that are held for sale or have been sold and with which we have no continuing involvement are reflected in the consolidated financial statements as discontinued operations and are summarized as follows (in thousands, net of tax):

	Three Months Ended March 31,
	2013			2012
Revenues	$	168		$	1,820
Expenses	(316		)	(1,700		)
Gain on extinguishment of debt	70			-
Loss on sale of real estate	(931		)	(181		)
Impairment charges	-			(5,724		)
Loss from discontinued operations	$	(1,009	)	$	(5,785	)

2013 — During the three months ended March 31, 2013, we sold two domestic properties, which we acquired in the Merger, for $11.0 million, net of selling costs, and recognized a net loss on these sales of $0.3 million, excluding an impairment charge of $0.2 million previously recognized during 2012. We used a portion of the proceeds to repay an outstanding mortgage obligation of $5.7 million and recognized a gain on extinguishment of debt of $0.1 million. In connection with these sales, we wrote off goodwill of $0.7 million related to these properties (Note 7).

In February 2013, we entered into a contract to sell a domestic property for $3.1 million. At March 31, 2013, this property was classified with Assets held for sale in the consolidated balance sheet.

We sold 12 additional properties during 2012 subsequent to first quarter of 2012. The results of operations for these properties are included in Loss from discontinued operations, net of tax in the consolidated financial statements for the three months ended March 31, 2012.

2012 — During the three months ended March 31, 2012, we sold two domestic properties for $2.4 million, net of selling costs, and recognized a net loss on these sales of $0.2 million, excluding impairment charges of $0.8 million previously recognized during 2011.

In January 2012, we entered into an agreement to sell a domestic property. In April 2012, we completed the sale of this property for $13.2 million, net of selling costs. In connection with the sale, we recognized impairment charges totaling $2.4 million during the three months ended March 31, 2012 and $5.8 million during 2011.

Note 14. Segment Reporting

We evaluate our results from operations by our two major business segments — Real Estate Ownership and Investment Management (Note 1). Effective April 1, 2012, we include distributions of Available Cash received from the operating partnerships of the Managed REITs and deferred revenue earned from our special member interest in CPA®:16 — Global’s operating partnership in our Real Estate Ownership segment. Results of operations for the prior period have been reclassified to conform to the current period presentation.

W. P. Carey 3/31/2013 10-Q — 31

Notes to Consolidated Financial Statements

The following table presents a summary of comparative results of these business segments (in thousands):

	Three Months Ended March 31,
	2013			2012
Real Estate Ownership (a)
Revenues	$	83,838		$	22,550
Operating expenses	(47,686		)	(13,457		)
Interest expense	(26,906		)	(7,280		)
Other, net (b)	9,604			14,138
Provision for income taxes	(1,149		)	(1,073		)
Income from continuing operations attributable to W. P. Carey	$	17,701		$	14,878
Investment Management
Revenues (c)	$	29,548		$	45,764
Operating expenses (c)	(35,296		)	(43,223		)
Other, net (d)	855			1,278
Benefit from (provision for) income taxes	2,382			(622		)
(Loss) income from continuing operations attributable to W. P. Carey	$	(2,511	)	$	3,197
Total Company
Revenues (c)	$	113,386		$	68,314
Operating expenses (c)	(82,982		)	(56,680		)
Interest expense	(26,906		)	(7,280		)
Other, net (b) (d)	10,459			15,416
Benefit from (provision for) income taxes	1,233			(1,695		)
Income from continuing operations attributable to W. P. Carey	$	15,190		$	18,075

	Total Long-Lived Assets at				Total Assets at
	March 31, 2013		December 31, 2012		March 31, 2013		December 31, 2012
Real Estate Ownership:
Net investments in real estate	$	3,250,565	$	3,239,755
Goodwill	264,867		265,525
In-place lease, net	468,132		447,278
Above-market rent, net	267,845		279,885
Other intangible assets, net	4,704		4,550
Total	4,256,113		4,236,993		$	4,340,656	$	4,484,821
Investment Management:
Goodwill	63,607		63,607
Other intangible assets, net	5,780		5,651
Total	69,387		69,258			268,958		124,221
Total Company	$	4,325,500	$	4,306,251	$	4,609,614	$	4,609,042

(a)Included within the Real Estate Ownership segment is our total investment in shares of CPA®:16 – Global, which represented approximately 6.7% of our total assets at March 31, 2013 (Note 6).

(b)Includes Other interest income, Net income from equity investments in real estate and the Managed REITs,  Other income and (expenses), and Net income attributable to noncontrolling interests.

(c)Included in revenues and operating expenses are reimbursable costs from affiliates totaling $12.0 million and $18.7 million for the three months ended March 31, 2013 and 2012, respectively.

(d)Includes Other interest income, Other income and (expenses), Net (income) loss attributable to noncontrolling interests and Net loss attributable to redeemable noncontrolling interest.

W. P. Carey 3/31/2013 10-Q — 32

Notes to Consolidated Financial Statements

At March 31, 2013, our international investments within our Real Estate Ownership segment were comprised of investments in France, Poland, Germany, Spain, Belgium, Finland, Netherlands and the United Kingdom. The following tables present information about these investments (in thousands):

	Three Months Ended March 31,
	2013		2012
Lease revenues	$	20,701	$	2,563
Income from equity investments in real estate	1,081		1,539
	$	21,782	$	4,102

	March 31, 2013		December 31, 2012
Long-lived assets	$	839,481	$	875,796

W. P. Carey 3/31/2013 10-Q — 33

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The MD&A is intended to provide the reader with information that will assist in understanding our financial statements and the reasons for changes in certain key components of our financial statements from period to period. MD&A also provides the reader with our perspective on our financial position and liquidity, as well as certain other factors that may affect our future results. The discussion also provides information about the financial results of the segments of our business to provide a better understanding of how these segments and their results affect our financial condition and results of operations. Our MD&A should be read in conjunction with our 2012 Annual Report.

Business Overview

As described in more detail in Item 1 in our 2012 Annual Report, we provide long-term financing via sale-leaseback and build-to-suit transactions for companies worldwide and manage a global investment portfolio of 1,012 properties, including our owned portfolio. Our business operates in two segments — Real Estate Ownership and Investment Management.

Financial and Operating Highlights

(In thousands)

	Three Months Ended March 31,
	2013			2012
Total revenues (excluding reimbursed costs from affiliates)	$	101,418		$	49,577
Net income attributable to W. P. Carey	14,181			12,290
Net cash provided by (used in) operating activities	17,475			(4,060		)
Net cash (used in) provided by investing activities	(27,734		)	9,464
Net cash used in financing activities	(865		)	(4,173		)
Cash distributions paid	45,746			22,792
Supplemental financial measure:
Funds from operations - as adjusted (AFFO) (a)	72,255			40,069

(a)See Supplemental Financial Measures below for our definition of Funds from operations (“AFFO”) and a reconciliation to its most directly comparable GAAP measure.

Total revenues increased in the three months ended March 31, 2013 as compared to the same period in 2012, substantially due to higher total revenues from our Real Estate Ownership segment, which rose as a result of the revenues generated from the properties we acquired in the Merger in September 2012 (Note 3). This increase in revenues was partially offset by a reduction in revenues from our Investment Management segment as a result of the Merger, which reduced the asset base from which we earn asset management revenue.

Net income attributable to W. P. Carey increased in the three months ended March 31, 2013 as compared to the same period in 2012. Net income from our Real Estate Ownership segment increased as a result of income generated from the properties we acquired in the Merger. We recognized a net loss from our Investment Management segment during the first quarter of 2013 compared to net income recognized in the same period in 2012. The net loss recognized by our Investment Management Segment in 2013 was primarily due to the reduction in revenue described above and higher stock–based compensation expenses.

Net cash provided by operating activities increased in the three months ended March 31, 2013 as compared to net cash used in operating activities of $4.1 million in the same period in 2012, primarily due to operating cash flow generated from the properties we acquired in the Merger, partially offset by a decrease in cash received for providing asset–based management services to the Managed REITs as a result of the Merger.

AFFO increased in the first quarter of 2013 as compared to the same quarter in 2012, primarily due to income generated from the properties we acquired in the Merger, partially offset by the reduction in asset management revenue received as noted above.

W. P. Carey 3/31/2013 10-Q — 34

Recent Developments

Acquisitions - In January 2013, we closed a sale–leaseback on a corporate office campus in Illinois for a total purchase price of $72.4 million which was partially financed by a $36.5 million non–recourse loan. The new asset is expected to generate contractual rent of $5.0 million per year for the initial 10–year lease term. Annual debt service is approximately $1.5 million per year.

Structuring - During the first quarter of 2013, we closed $192.8 million in investments for the Managed REITs.

Distributions - In March 2013, we increased our quarterly dividend by 24% to $0.82 per share, which equates to an annualized $3.28 per share compared to $2.26 per share in 2012. This increase primarily reflects our conversion to REIT status and the significant increase in our real estate under ownership resulting from the Merger.

Possible Liquidity Transaction - In its initial offering documents, CPA®:16 – Global stated its intention to consider liquidity events for investors generally commencing eight to twelve years following the investment of substantially all of the net proceeds from that offering, which occurred in 2005.  As a result, during the first quarter of 2013, we began considering liquidity alternatives on behalf of CPA®:16 – Global as its advisor and have discussed with its board of directors a number of those alternatives. The board of directors of CPA®:16 – Global has formed a special committee of independent directors to explore possible liquidity transactions, including transactions proposed by us. CPA®:16 – Global’s special committee is authorized to retain, and has retained, legal and financial advisors to assist the committee in its review. A liquidity transaction could take a variety of forms, including, without limitation, a merger and/or sale of assets either on a portfolio basis or individually, or listing of CPA®:16 – Global’s shares on a stock exchange and, similar to prior liquidity transactions undertaken by other CPA® programs, could involve one or more other CPA® REITs and/or our affiliates. The execution of a liquidity transaction could be affected by a variety of factors, such as conditions in the economy, stock market volatility, conditions in the commercial real estate market, the performance of CPA®:16 – Global’s tenants, and the availability of financing on acceptable terms, many of which are outside of our control. There can be no assurance that our efforts or those of CPA®:16 – Global’s special committee will result in the occurrence of a liquidity transaction in the near future or at all.

W. P. Carey 3/31/2013 10-Q — 35

Results of Operations

We evaluate our results of operations by our two primary reportable segments — Real Estate Ownership and Investment Management. Effective April 1, 2012, we include cash distributions and deferred revenue received and earned from the operating partnerships of the Managed REITs in our Real Estate Ownership segment. Results for 2012 have been reclassified to conform to the current period presentation. A summary of comparative results of these business segments is as follows:

Real Estate Ownership (in thousands)

	Three Months Ended March 31,
	2013			2012			Change
Revenues
Lease revenues:
Rental income	$	65,785		$	14,652		$	51,133
Interest income from direct financing leases	9,512			2,126			7,386
Total lease revenues	75,297			16,778			58,519
Other real estate income	8,541			5,772			2,769
	83,838			22,550			61,288
Operating Expenses
Depreciation and amortization	29,888			5,525			24,363
Property expenses	5,152			2,072			3,080
General and administrative	6,633			3,361			3,272
Other real estate expenses	2,734			2,499			235
Impairment charges	3,279			-			3,279
	47,686			13,457			34,229
Other Income and Expenses
Other interest income	113			15			98
Net income from equity investments in real estate and the Managed REITs	10,656			13,986			(3,330		)
Other income and (expenses)	1,060			286			774
Interest expense	(26,906		)	(7,280		)	(19,626		)
	(15,077		)	7,007			(22,084		)
Income from continuing operations before income taxes	21,075			16,100			4,975
Provision for income taxes	(1,149		)	(1,073		)	(76		)
Income from continuing operations	19,926			15,027			4,899
Loss from discontinued operations	(1,009		)	(5,785		)	4,776
Net income from real estate ownership	18,917			9,242			9,675
Less: Net income attributable to noncontrolling interests	(2,225		)	(149		)	(2,076		)
Net income from real estate ownership attributable to W. P. Carey	$	16,692		$	9,093		$	7,599
Funds from operations - as adjusted (AFFO)	$	62,956		$	28,833		$	34,123

W. P. Carey 3/31/2013 10-Q — 36

The following tables present other operating data that management finds useful in evaluating results of operations:

	March 31, 2013	December 31, 2012
Occupancy - WPC	98.8%	98.7%
Total net-leased properties - WPC	422	423
Total operating properties - WPC (a)	22	22
Total net-leased properties - Managed REITs	703	705
Total operating properties - Managed REITs (a)	77	69

	For the Three Months Ended March 31,
	2013			2012
Financings structured - WPC (millions)	$	112.7	$	-
New consolidated investments - WPC (millions)	$	72.4	$	-
Investments structured - Managed REITs (millions) (b)	$	192.8	$	344.8
Average U. S. dollar/euro exchange rate (c)	$	1.3209	$	1.3110
U.S. Consumer Price Index (“CPI”) (d)	232.8		229.4

(a)Operating properties comprise self-storage properties and hotels that are managed by third parties. WPC’s operating properties are all self-storage properties with the exception of one hotel for all periods presented.

(b)Includes properties owned by the Managed REITs for all periods.

(c)The average conversion rate for the U.S. dollar in relation to the euro increased by approximately 0.8% during the three months ended March 31, 2013 as compared to 2012, resulting in a positive impact on earnings in 2013 from our euro-denominated investments.

(d)Many of our domestic lease agreements and those of the Managed REITs include contractual increases indexed to the change in the U.S. CPI.

W. P. Carey 3/31/2013 10-Q — 37

The following table sets forth the net lease revenues (i.e., rental income and interest income from direct financing leases) that we earned from lease obligations through our consolidated real estate investments (in thousands):

	Three Months Ended March 31,
Lessee	2013		2012
U-Haul Moving Partners Inc. (a) (b)	$	8,063	$	-
Marcourt Investments Inc. (a)	4,830		-
OBI Group (b) (c) (d)	4,281		245
Carrefour France, SAS (d) (e)	4,032		-
Hellweg Die Profi-Baumärkte GmbH & Co KG (Hellweg 1) (a) (b) (d)	3,935		-
True Value Company (a) (b)	3,189		-
Pohjola Non-Life Insurance Company LTD (a) (b) (d)	1,925		-
TietoEnator Plc (a) (b) (d)	1,889		-
Federal Express Corporation	1,832		1,821
Kraft Foods Group, Inc. (f)	1,582		-
Police Prefecture, French Government (a) (b) (d)	1,425		-
Fiserv, Inc. (b)	1,368		1,336
Foster Wheeler AG (a)	1,208		-
The American Bottling Company	1,110		1,128
Amylin Pharmaceuticals, Inc.	1,090		1,090
Omnicom Group Inc. (a)	1,058		-
JP Morgan Chase Bank, N.A.	990		972
Orbital Sciences Corporation	828		828
Google, Inc.	769		712
Eroski Sociedad Cooperativa (b) (d)	767		762
Other (b) (d) (g)	29,126		7,884
	$	75,297	$	16,778

(a)We acquired this investment from CPA®:15 in connection with the Merger.

(b)These revenues are generated in consolidated investments, generally jointly-owned with our affiliates, and on a combined basis include lease revenues applicable to noncontrolling interests totaling $10.2 million and $0.4 million for the three months ended March 31, 2013 and 2012, respectively.

(c)We acquired an additional interest in this investment from CPA®:15 in the Merger.

(d)Amounts are subject to fluctuations in foreign currency exchange rates. The average conversion rate for the U.S. dollar in relation to the euro during the three months ended March 31, 2013 increased by approximately 0.8% in comparison to 2012, resulting in a positive impact on lease revenues in 2013 for our euro-denominated investments.

(e)We acquired the remaining interest in this investment from CPA®:15 in the Merger. Subsequent to the acquisition, we consolidated this investment. We had previously accounted for this investment under the equity method.

(f)We acquired this investment in January 2013.

(g)The increase primarily relates to the investments obtained in the Merger, which accounts for $21.8 million.

W. P. Carey 3/31/2013 10-Q — 38

We recognize income from equity investments in real estate, of which lease revenues are a significant component. The following table sets forth the net lease revenues earned by these investments from both continuing and discontinued operations. Amounts provided are the total amounts attributable to the investments and do not represent our proportionate share (dollars in thousands):

	Ownership Interest	Three Months Ended March 31,
Lessee	at March 31, 2013	2013		2012
Hellweg Die Profi-Baumärkte GmbH & Co. KG (a) (b)	40%	$	8,952	$	-
The New York Times Company	18%	6,924		6,867
C1000 Logistiek Vastgoed B. V. (a) (b)	15%	3,777		-
Advanced Micro Devices (b)	33%	2,986		-
Schuler A.G. (a)	67%	1,566		1,549
The Talaria Company (Hinckley) (b)	30%	1,275		-
U. S. Airways Group, Inc.	75%	1,063		1,093
Del Monte Corporation (b)	50%	882		-
Wanbishi Archives Co. Ltd (a) (c)	3%	822		-
Waldaschaff Automotive GmbH and Wagon Automotive Nagold GmbH (a) (b)	33%	820		-
PetSmart, Inc. (b)	30%	702		-
Consolidated Systems, Inc.	60%	448		469
Builders FirstSource, Inc. (b)	40%	420		-
SaarOTEC (a) (b)	50%	124		-
Carrefour France, SAS (a)	(d)	-		4,756
Médica – France, S.A. (a)	(e)	-		1,598
Hologic, Inc.	(d)	-		943
Symphony IRI Group, Inc.	(d)	-		540
Childtime Childcare, Inc.	(d)	-		287
		$	30,761	$	18,102

(a)Amounts are subject to fluctuations in foreign currency exchange rates. The average conversion rate for the U.S. dollar in relation to the euro during the three months ended March 31, 2013 increased by approximately 0.8% in comparison to 2012, resulting in a positive impact on lease revenues in 2013 for our euro-denominated investments.

(b)We acquired our interest in this investment from CPA®:15 in the Merger.

(c)Dollar amounts shown are based on the exchange rate of the Japanese yen at March 31, 2013. We acquired our interest in this investment in December 2012.

(d)In connection with the Merger, we purchased the remaining interest in this investment from CPA®:15. Subsequent to the Merger, we own 100% and consolidate this investment.

(e)In April 2012, this jointly-owned entity sold its interests in the investment. Results of operations for this investment were classified as a discontinued operation by the entity that holds the controlling interest for all periods presented.

Lease Revenues

As of March 31, 2013, approximately 69% of our net leases, based on annualized contractual minimum base rent, provide for adjustments based on formulas indexed to changes in the CPI, or other similar indices for the jurisdiction in which the property is located, some of which have caps and/or floors. In addition, approximately 23% of our net leases on that same basis have fixed rent adjustments, pursuant to which contractual minimum base rent is scheduled to increase by an average of 2% in the next 12 months. We own international investments and, therefore, lease revenues from these investments are subject to fluctuations in exchange rate movements in foreign currencies.

During the three months ended March 31, 2013, we signed eight leases totaling approximately 0.3 million square feet of leased space. Of these leases, two were with new tenants and six were lease renewals or extensions with existing tenants. The average new rent for these leases was $5.70 per square foot and the average former rent was $7.83 per square foot, reflecting current market conditions. We provided a tenant improvement allowance of $0.4 million on one of these leases.  In addition, we entered a lease extension to a 0.4 million square feet building and committed to an expansion of 0.1 million square feet at an expected cost of $6.4 million. The old rent of this lease was $4.72 per square foot and the new rent was $4.29 per square foot.

W. P. Carey 3/31/2013 10-Q — 39

During the three months ended March 31, 2012, we signed seven leases totaling approximately 0.4 million square feet of leased space. Of these leases, two were with new tenants and five were lease renewals or extensions with existing tenants. The average new rent for these leases was $4.88 per square foot and the average former rent was $5.87 per square foot. We provided a tenant improvement allowance of $0.1 million and four months of free rent on one of these leases.

For the three months ended March 31, 2013 as compared to the same period in 2012, lease revenues increased by $58.5 million, primarily due to the properties we acquired in the Merger, which contributed to an increase in lease revenues of $56.8 million.

Other Real Estate Income

Other real estate income generally consists of revenue from Carey Storage, a subsidiary that holds investments in domestic self-storage properties, and Livho, a subsidiary that operates a hotel under a franchise agreement in Livonia, Michigan. Other real estate income also includes pass-through common area charges, lease termination payments and other non-rent related revenues from real estate ownership.

For the three months ended March 31, 2013 as compared to the same period in 2012, other real estate income increased by $2.8 million, primarily due to $2.2 million of income related to certain properties we acquired in the Merger and a $0.5 million aggregate increase in revenue from our Livho and Carey Storage subsidiaries.

Depreciation and Amortization

For the three months ended March 31, 2013 as compared to the same period in 2012, depreciation and amortization increased by $24.4 million, primarily due to increases of $22.3 million related to the properties we acquired in the Merger and $1.4 million related to the property we purchased in the first quarter of 2013.

Property Expenses

For the three months ended March 31, 2013 as compared to the same period in 2012, property expenses increased by $3.1 million, primarily related to properties we acquired in the Merger.

General and Administrative

For the three months ended March 31, 2013 as compared to the same period in 2012, general and administrative expenses increased by $3.3 million, primarily due to a $3.2 million increase in personnel costs, a $1.1 million increase in outside consulting costs, and a $0.4 million increase in office expense. These current year period increases were partially offset by costs of $2.0 million incurred during the prior year period in connection with the Merger.

Impairment Charges

During the three months ended March 31, 2013, we recognized an impairment charge of $2.2 million on a property to reduce the carrying value of the property to its estimated fair value, which approximated its estimated selling price (Note 8). In addition, during the three months ended March 31, 2013, we recognized an impairment charge of $1.1 million on our hotel property to write down the carrying value of the property to its estimated fair value as a result of a change in holding period (Note 8).

As part of our portfolio management strategy, we exit from investments containing lower quality, lower growth assets and market properties for sale. We evaluate all potential sale opportunities taking into account the long-term growth prospects of assets being sold, the use of proceeds, and the impact to our balance sheet, in addition to the impact on operating results. In our experience, it is difficult for many buyers to complete these transactions in the timing contemplated or at all. Where the undiscounted cash flows, when considering and evaluating the various alternative courses of action that may occur, are less than the assets’ carrying values, we recognize impairment charges. Further, it is possible that we may sell an asset for a price below its estimated fair value and record a loss on sale.

See Income from Equity Investments in Real Estate and the Managed REITs and Loss from Discontinued Operations below for additional impairment charges incurred.

W. P. Carey 3/31/2013 10-Q — 40

Net Income from Equity Investments in Real Estate and the Managed REITs

Net income from equity investments in real estate and the Managed REITs represents our proportionate share of net income or loss (revenue less expenses) from our interests in unconsolidated real estate investments including our investments in the Managed REITs. In addition, we are entitled to receive distributions of Available Cash from the operating partnerships of the Managed REITs. The net income of our unconsolidated investments fluctuates based on the timing of transactions, such as new leases and property sales, as well as the level of impairment charges.

For the three months ended March 31, 2013 as compared to the same period in 2012, net income from equity investments in real estate and the Managed REITs decreased by $3.3 million, primarily due to an increase in the other-than-temporary impairment charge of $2.4 million recorded during 2013 on our special membership interest in CPA®:16 – Global’s operating partnership to reduce the carrying value of our interest in the operating partnership to its estimated fair value, which had declined (Note 8), and decreases in equity income from the Managed REITs of $1.1 million because, after the completion of the Merger in September 2012, we no longer receive any such income from CPA®:15, and $0.8 million related to our share of impairments recognized by CPA®:16 – Global. These decreases were partially offset by an aggregate $0.9 million increase in distributions of Available Cash received and earned from the operating partnership of CPA®:17 – Global as a result of new investments CPA®:17 – Global entered into during 2012 and 2013 and the operating partnership of CPA®:16 – Global.

Interest Expense

For the three months ended March 31, 2013 as compared to the same period in 2012, interest expense increased by $19.6 million, of which $18.8 million relates to mortgage loans assumed in connection with our acquisition of properties in the Merger.

Loss from Discontinued Operations

Loss from discontinued operations represents the net income or loss (revenue less expenses) from the operations of properties that were sold or held for sale (Note 13).

For the three months ended March 31, 2013, we recognized loss from discontinued operations of $1.0 million, primarily due to a net loss on the sale of two properties totaling $0.9 million.

For the three months ended March 31, 2012, we recognized loss from discontinued operations of $5.8 million, primarily due to an impairment charge of $5.7 million recorded on a property to reduce the carrying value of the property to its expected selling price. We completed the sale of this property in April 2012.

Net Income from Real Estate Ownership Attributable to W. P. Carey

For the three months ended March 31, 2013 as compared to the same period in 2012, the resulting net income from real estate ownership attributable to W. P. Carey increased by $7.6 million.

Funds from Operations — as Adjusted (AFFO)

For the three months ended March 31, 2013 as compared to the same period in 2012, AFFO from Real Estate Ownership increased by $34.1 million, primarily as a result of income earned from the properties we acquired in the Merger. AFFO is a non-GAAP measure that we use to evaluate our business. For a definition of AFFO and reconciliation to net income attributable to W. P. Carey, see Supplemental Financial Measures below.

W. P. Carey 3/31/2013 10-Q — 41

Investment Management (in thousands)

	Three Months Ended March 31,
	2013		2012		Change
Revenues
Asset management revenue	$	10,015	$	15,602	$	(5,587	)
Structuring revenue	6,342		7,638		(1,296		)
Dealer manager fees	1,223		3,787		(2,564		)
Reimbursed costs from affiliates	11,968		18,737		(6,769		)
	29,548		45,764		(16,216		)
Operating Expenses
General and administrative	22,340		23,548		(1,208		)
Reimbursable costs	11,968		18,737		(6,769		)
Depreciation and amortization	988		938		50
	35,296		43,223		(7,927		)
Other Income and Expenses
Other interest income	257		488		(231		)
Other income and (expenses)	31		20		11
	288		508		(220		)
(Loss) income from continuing operations before income taxes	(5,460)		3,049		(8,509		)
Benefit from (provision for) income taxes	2,382		(622)		3,004
Net (loss) income from investment management	(3,078)		2,427		(5,505		)
Add: Net loss attributable to noncontrolling interests	517		727		(210		)
Add: Net loss attributable to redeemable noncontrolling interest	50		43		7
Net (loss) income from investment management attributable to W. P. Carey	$	(2,511)	$	3,197	$	(5,708	)
Funds from operations - as adjusted (AFFO)	$	9,299	$	11,236	$	(1,937	)

The following tables present other operating data that management finds useful in evaluating results of operations:

	March 31, 2013		December 31, 2012
Total properties - Managed REITs (a)	780		774
Assets under management (millions) (a) (b)	$	8,598.1	$	7,870.8
Cumulative funds raised - CPA®:17 – Global offerings (millions) (c)	$	2,884.5	$	2,883.1
Cumulative funds raised - CWI offering (millions) (d)	$	227.7	$	159.6

	For the Three Months Ended March 31,
	2013		2012
Financings structured - Managed REITs (millions)	$	267.8	$	144.2
Consolidated investments structured - Managed REITs (millions)	$	192.8	$	171.7
Funds raised - CPA®:17 – Global offerings (millions) (c)	$	1.3	$	176.7
Funds raised - CWI offering (millions) (d)	$	70.2	$	11.7

(a)Includes properties owned by the Managed REITs for all periods.

(b)Represents the fair value of the real estate assets owned by the Managed REITs, which was calculated based upon third-party appraisals.

(c)Reflects funds raised in the initial offering (commenced in December 2007) and the follow-on offering (commenced April 7, 2011). The follow-on offering was terminated on January 31, 2013.

(d)Reflects funds raised in the initial offering. The initial offering commenced on March 3, 2011 once the minimum funds were raised.

W. P. Carey 3/31/2013 10-Q — 42

Asset Management Revenue

We earn asset management revenue from the Managed REITs and, until the Merger, we earned performance revenue from CPA®:15, based on the value of their real estate-related and lodging-related assets under management. This asset management revenue may increase or decrease depending upon (i) increases in the Managed REITs’ asset bases as a result of new investments; (ii) decreases in the Managed REITs’ asset bases as a result of sales of investments; and (iii) increases or decreases in the appraised value of the real estate-related and lodging-related assets in the Managed REIT investment portfolios. The availability of funds for new investments is substantially dependent on our ability to raise funds for investment by the Managed REITs through their public offerings.

For the three months ended March 31, 2013 as compared to the same period in 2012, asset management revenue decreased by $5.6 million. Asset management revenue from CPA®:15 decreased by $6.3 million during the three months ended March 31, 2013 as a result of the cessation of asset management fees and performance fees earned from CPA®:15 after the Merger in September 2012. This decrease was partially offset by an aggregate increase of $0.9 million during the three months ended March 31, 2013 from CPA®:17 – Global and CWI as a result of new investments that they entered into during 2012 and 2013.

Structuring Revenue

We earn structuring revenue when we structure investments and debt placement transactions for the Managed REITs. Structuring revenue is dependent on investment activity, which is subject to significant period-to-period variation.

For the three months ended March 31, 2013 as compared to the same period in 2012, structuring revenue decreased by $1.3 million. The decrease was primarily due to the fee rates applicable to the types of transactions structured pursuant to the terms of the advisory agreements with CPA®:17 – Global and CWI.

Dealer Manager Fees

As discussed in Note 3, we earned a dealer manager fee of up to $0.35 per share sold in connection with CPA®:17 – Global’s follow-on offering, which commenced on April 7, 2011 and terminated on January 31, 2013. We also earn a $0.30 dealer manager fee per share sold in connection with CWI’s ongoing initial public offering. We re-allow all or a portion of the dealer manager fees to selected dealers in the offerings. Dealer manager fees that are not re-allowed are classified as Dealer manager fees in the consolidated financial statements. Dealer manager fees earned are generally offset by underwriting costs incurred in connection with the offerings, which are included in General and administrative expenses.

For the three months ended March 31, 2013 as compared to the same period in 2012, dealer manager fees decreased by $2.6 million, primarily due to a decrease in shares sold in connection with CPA®:17 – Global follow-on offering, which terminated on January 31, 2013, partially offset by an increase in shares sold in connection with CWI offering in the first quarter of 2013 compared to the prior year period.

Reimbursed and Reimbursable Costs

Reimbursed costs (revenue) from affiliates and reimbursable costs (expenses) represent costs incurred by us on behalf of the Managed REITs, consisting primarily of broker-dealer commissions and marketing and personnel costs, which are reimbursed by the Managed REITs. Revenue from reimbursed costs from affiliates is offset by corresponding charges to reimbursable costs.

For the three months ended March 31, 2013 as compared to the same period in 2012, reimbursed and reimbursable costs decreased by $6.8 million, primarily due to a decrease of $13.5 million in commissions paid to broker-dealers related to the CPA®:17 – Global offering as a result of the termination of its follow-on offering on January 31, 2013. This decrease was partially offset by an increase of $4.9 million in commissions paid to broker-dealers related to the CWI offering as a result of corresponding increase in funds raised and an increase of $2.2 million in personnel costs reimbursed by the Managed REITs, primarily as a result of the change in methodology used to allocate personnel costs to the Managed REITs (Note 3).

General and Administrative

For the three months ended March 31, 2013 as compared to the same period in 2012, general and administrative expenses decreased by $1.2 million, primarily due to (i) a decrease of $5.4 million as a result of additional personnel costs allocated to the Managed REITs due to the change in the method we used to allocate personnel costs (Note 3); (ii) a decrease of $1.0 million in professional fees; (iii) a decrease of $0.9 million in underwriting costs primarily related to CPA®:17 – Global as a result of a corresponding

W. P. Carey 3/31/2013 10-Q — 43

decrease in funds raised; and (iv) a decrease of $0.7 million in other general and administrative expenses. These decreases were partially offset by an increase in compensation expense of $6.8 million. Compensation costs increased by $3.7 million due to an increase in stock-based compensation expense, which was primarily the result of revising the expected payout ratio of the PSUs issued in 2012 and 2011, and by $1.6 million due to an increase in the number of personnel during 2012.

Benefit from (Provision for) Income Taxes

For the three months ended March 31, 2013, benefit from income taxes was $2.4 million compared to provision for income taxes of $0.6 million recognized in the same period in 2012, primarily due to the net loss recognized in the current year period compared to net income recognized in the prior year period. In addition, compensation-related deductions were higher in the current year period as compared to the same period in the prior year.

Net (Loss) Income from Investment Management Attributable to W. P. Carey

For the three months ended March 31, 2013, the resulting net loss from investment management attributable to W. P. Carey was $2.5 million compared to net income of $3.2 million recognized in the prior year period.

Funds from Operations — as Adjusted (AFFO)

For the three months ended March 31, 2013 as compared to the same period in 2012, AFFO from our Investment Management segment decreased by $1.9 million, primarily as a result of the cessation of asset management fees and performance fees received from CPA®:15 after the Merger in September 2012. AFFO is a non-GAAP measure that we use to evaluate our business. For a definition of AFFO and reconciliation to net income attributable to W. P. Carey, see Supplemental Financial Measures below.

Financial Condition

Sources and Uses of Cash During the Period

We use the cash flow generated from our investments to meet our operating expenses, service debt and fund distributions to stockholders. Our cash flows fluctuate period to period due to a number of factors, which may include, among other things, the timing of purchases and sales of real estate, the timing of the receipt of proceeds from, and the repayment of, mortgage loans and receipt of lease revenues, the receipt of the annual installment of deferred acquisition revenue and interest thereon from the CPA® REITs, our election to receive asset management fees in either shares of the Managed REITs’ common stock or cash, the timing and characterization of distributions from equity investments in real estate and the Managed REITs, the receipt of distributions of Available Cash from certain Managed REITs, and changes in foreign currency exchange rates. Despite these fluctuations, we believe that we will generate sufficient cash from operations and from equity distributions in excess of equity income in real estate to meet our normal recurring short-term and long-term liquidity needs. We may also use existing cash resources, the proceeds of mortgage loans, unused capacity on our Revolver, net contributions from noncontrolling interests, and the issuance of additional equity securities to meet these needs. We assess our ability to access capital on an ongoing basis. Our sources and uses of cash during the period are described below.

Operating Activities

Cash flow from operating activities increased by $21.5 million during the three months ended March 31, 2013 as compared to the same period in 2012, primarily due to operating cash flow generated from the properties we acquired in the Merger, partially offset by a decrease in cash received for providing asset management services to the Managed REITs during the three months ended March 31, 2013 as compared to the same period in 2012 due to the cessation of such fees earned from CPA®:15 after the Merger in September 2012.

Investing Activities

Our investing activities are generally comprised of real estate-related transactions (purchases and sales) and capitalized property-related costs. During the three months ended March 31, 2013, we purchased a domestic investment for $72.4 million, which we partially funded with $25.3 million from the escrowed proceeds of a sale of a property in an exchange transaction under Section 1031 of the Code. Funds totaling $27.1 million and $25.4 million were invested in and released from, respectively, lender-held investment accounts. We also used $1.8 million to make capital improvements to various properties. We received $12.0 million in distributions from equity investments in real estate and the Managed REITs in excess of cumulative equity income. We also received cash proceeds of $11.1 million from the sale of two properties.

W. P. Carey 3/31/2013 10-Q — 44

Financing Activities

During the three months ended March 31, 2013, we paid distributions to stockholders of $45.7 million and paid distributions of $9.2 million to affiliates who hold noncontrolling interests in various entities with us. We made scheduled mortgage loan principal payments of $102.6 million. We also received mortgage financing proceeds of $99.0 million. We drew down $55.0 million from our Revolver, partially offset by repayments of $10.0 million. We received contributions of $2.5 million from affiliates who hold noncontrolling interests in various entities with us. We recognized windfall tax benefits of $10.8 million in connection with certain employees exercising their stock options and the vesting of PSUs and RSUs, which reduced our tax liability to taxing authorities.

Summary of Financing

The table below summarizes our non-recourse debt and Senior Credit Facility (dollars in thousands):

	March 31, 2013		December 31, 2012
Carrying value
Fixed rate	$	1,313,139	$	1,322,168
Variable rate (a)	680,196		646,229
Total	$	1,993,335	$	1,968,397
Percent of Total Debt
Fixed rate	66%		67%
Variable rate (a)	34%		33%
	100%		100%
Weighted-Average Interest Rate at End of Period
Fixed rate	5.5%		5.6%
Variable rate (a)	3.3%		3.4%

(a)Variable-rate debt at March 31, 2013 included (i) $298.0 million outstanding under our Senior Credit Facility, which includes the $175.0 million outstanding under the Term Loan Facility, (ii) $245.2 million that has been effectively converted to fixed rates through interest rate swap and cap derivative instruments and (iii) $44.2 million in mortgage loan obligations that bore interest at fixed rates but have interest rate reset features that may change the interest rates to then-prevailing market fixed rates (subject to specified caps) at certain points during their term.

Cash Resources

At March 31, 2013, our cash resources consisted of the following:

·Cash and cash equivalents totaling $111.6 million. Of this amount, $68.0 million, at then-current exchange rates, was held by foreign subsidiaries, but we could be subject to restrictions or significant costs should we decide to repatriate these amounts;

·Our Revolver, with unused capacity of $321.6 million, excluding amounts reserved for outstanding letters of credit. Our lender has issued letters of credit totaling $5.4 million on our behalf in connection with certain contractual obligations, which reduce amounts that may be drawn under the facility; and

·We also had unleveraged properties that had an aggregate carrying value of $51.2 million at March 31, 2013, although there can be no assurance that we would be able to obtain financing for these properties.

Our cash resources can be used for working capital needs and other commitments and may be used for future investments. We continue to evaluate fixed-rate financing options, such as obtaining non-recourse financing on our unleveraged properties.

Cash Requirements

During the next 12 months, we expect that cash payments will include paying distributions to our stockholders and to our affiliates who hold noncontrolling interests in entities we control and making scheduled mortgage loan principal payments, including mortgage

W. P. Carey 3/31/2013 10-Q — 45

balloon payments totaling $64.8 million, as well as other normal recurring operating expenses. There are no mortgage balloon payments due on our equity investments during the next 12 months.

We expect to fund future investments, any capital expenditures on existing properties and scheduled debt maturities on non-recourse mortgage loans through cash generated from operations, the use of our cash reserves or unused amounts on our Revolver and equity or debt offerings.

Off-Balance Sheet Arrangements and Contractual Obligations

The table below summarizes our debt, off-balance sheet arrangements and other contractual obligations at March 31, 2013 and the effect that these arrangements and obligations are expected to have on our liquidity and cash flow in the specified future periods (in thousands):

			Less than						More than
	Total		1 year		1-3 years		3-5 years		5 years
Non-recourse debt — Principal (a)	$	1,709,609	$	117,873	$	581,965	$	340,286	$	669,485
Senior Credit Facility — Principal (b)	298,000		-		298,000		-		-
Interest on borrowings (c)	434,962		94,239		133,640		88,102		118,981
Shares repurchased (d)	40,000		40,000		-		-		-
Operating and other lease commitments (e)	32,873		3,205		6,029		7,620		16,019
Property improvement commitments	7,344		7,344		-		-		-
	$	2,522,788	$	262,661	$	1,019,634	$	436,008	$	804,485

(a)Excludes an unamortized discount of $14.3 million (Note 10).

(b)Our $625.0 million Senior Credit Facility is scheduled to mature in December 2014, unless extended pursuant to its terms. Amount in the table includes borrowings under our Revolver and $175.0 million outstanding under the Term Loan Facility.

(c)Interest on unhedged variable-rate debt obligations was calculated using the applicable annual variable interest rates and balances outstanding at March 31, 2013.

(d)Represents our remaining commitment to repurchase shares from the Estate at March 31, 2013. On April 4, 2013, we repurchased the remaining $40.0 million of common stock under this commitment (Note 3).

(e)Operating and other lease commitments consist primarily of the future minimum rents payable on the lease for our principal offices. We are reimbursed by the Managed REITs for their share of the future minimum rents pursuant to their respective advisory agreements with us. These amounts are allocated among the entities based on gross revenues and are adjusted quarterly.

Amounts in the table above related to our foreign operations are based on the exchange rate of the local currencies at March 31, 2013, which consisted primarily of the euro. At March 31, 2013, we had no material capital lease obligations for which we were the lessee, either individually or in the aggregate.

Equity Method Investments

We have unconsolidated investments that own single-tenant properties net leased to companies. Generally, the underlying investments are jointly-owned with our affiliates. At March 31, 2013, on a combined basis, these investments had total assets and third party debt of $1.3 billion and $778.4 million, respectively. At that date, our pro rata share of their aggregate debt was $287.1 million. Cash requirements with respect to our share of these debt obligations are discussed above under Cash Requirements.

Supplemental Financial Measures

In the real estate industry, analysts and investors employ certain non-GAAP supplemental financial measures in order to facilitate meaningful comparisons between periods and among peer companies. Additionally, in the formulation of our goals and in the evaluation of the effectiveness of our strategies, we employ the use of supplemental non-GAAP measures, which are uniquely defined by our management. We believe that these measures are useful to investors to consider because they may assist them to better understand and measure the performance of our business over time and against similar companies. A description of these non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures are provided below.

W. P. Carey 3/31/2013 10-Q — 46

Funds from Operations — as Adjusted

Funds from Operations (“FFO”) is a non-GAAP measure defined by the National Association of Real Estate Investment Trusts (“NAREIT”). NAREIT defines FFO as net income or loss (as computed in accordance with GAAP) excluding: depreciation and amortization expense from real estate assets, impairment charges on real estate, gains or losses from sales of depreciated real estate assets and extraordinary items; however, FFO related to assets held for sale, sold or otherwise transferred and included in the results of discontinued operations are included. These adjustments also incorporate the pro rata share of unconsolidated subsidiaries. FFO is used by management, investors and analysts to facilitate meaningful comparisons of operating performance between periods and among our peers. Although NAREIT has published this definition of FFO, companies often modify this definition as they seek to provide financial measures that meaningfully reflect their distinctive operations.

We modify the NAREIT computation of FFO to include other adjustments to GAAP net income to adjust for certain non-cash charges such as amortization of real estate-related intangibles, deferred income tax benefits and expenses, straight-line rents, stock compensation, gains or losses from extinguishment of debt and deconsolidation of subsidiaries and unrealized foreign currency exchange gains and losses. Additionally, we exclude expenses related to the Merger which are considered non-recurring, and realized gains/losses on foreign exchange and 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 as they are not the primary drivers in our decision making process. Our assessment of our operations is focused on long-term sustainability and not on such non-cash items, which may cause short-term fluctuations in net income but have no impact on cash flows, and we therefore use AFFO as one measure of our operating performance when we formulate corporate goals, evaluate the effectiveness of our strategies, and determine executive compensation.

We believe that AFFO is a useful supplemental measure for investors to consider because 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 earnings computed under GAAP or as alternatives to cash from operating activities computed under GAAP or as indicators of our ability to fund our cash needs.

W. P. Carey 3/31/2013 10-Q — 47

FFO and AFFO were as follows (in thousands):

	Three Months Ended March 31,
	2013		2012
Real Estate Ownership
Net income from real estate ownership attributable to W. P. Carey (a)	$	16,692	$	9,093
Adjustments:
Depreciation and amortization of real property	29,687		6,147
Impairment charges	3,279		5,724
Loss (gain) on sale of real estate, net	931		181
Proportionate share of adjustments to equity in net income of partially-owned entities to arrive at FFO:
Depreciation and amortization of real property	3,154		898
Loss (gain) on sale of real estate, net	-		142
Proportionate share of adjustments for noncontrolling interests to arrive at FFO	(4,267)		(434)
Total adjustments	32,784		12,658
FFO (as defined by NAREIT) - Real Estate Ownership	49,476		21,751
Adjustments:
Loss on extinguishment of debt	74		-
Other gains, net	(270)		-
Other depreciation, amortization and non-cash charges	800		(211)
Stock-based compensation	174		-
Deferred tax expense	(1,025)		(652)
Realized losses on foreign currency, derivatives and other (b)	52		-
Amortization of deferred financing costs	511		464
Straight-line and other rent adjustments	(2,169)		(1,115)
Above- and below-market rent intangible lease amortization, net (b)	7,256		-
Merger expenses	111		2,103
Proportionate share of adjustments to equity in net income of partially-owned entities to arrive at AFFO:
Other depreciation, amortization and non-cash charges	195		-
Straight-line and other rent adjustments	(188)		(413)
Above- and below-market rent intangible lease amortization, net	271		-
AFFO adjustments to equity earnings from equity investments	9,249		6,926
Proportionate share of adjustments for noncontrolling interests to arrive at AFFO	(1,561)		(20)
Total adjustments	13,480		7,082
AFFO - Real Estate Ownership	$	62,956	$	28,833
Investment Management
Net income from investment management attributable to W. P. Carey (a)	$	(2,511)	$	3,197
FFO (as defined by NAREIT) - Investment Management	$	(2,511)	$	3,197
Adjustments:
Other depreciation, amortization and other non-cash charges	262		258
Stock-based compensation	8,975		5,260
Deferred tax expense	2,253		2,236
Realized gains on foreign currency	2		-
Amortization of deferred financing costs	318		285
Total adjustments	11,810		8,039
AFFO - Investment Management	$	9,299	$	11,236
Total Company
FFO - as defined by NAREIT	$	46,965	$	24,948
AFFO	$	72,255	$	40,069

W. P. Carey 3/31/2013 10-Q — 48

(a)Effective April 1, 2012, we include distributions of Available Cash received from the operating partnerships of the Managed REITs and deferred revenue earned from our special member interest in CPA®:16 – Global’s operating partnership in our Real Estate Ownership segment. Results of operations for the prior period have been reclassified to conform to the current period presentation.

(b)These adjustments are significant and recurring subsequent to the Merger and were not included in the AFFO calculation for the three months ended March 31, 2012.

While we believe that FFO and AFFO are important supplemental measures, they should not be considered as alternatives to net income as an indication of a company’s operating performance. These non-GAAP measures should be used in conjunction with net income as defined by GAAP. FFO and AFFO, or similarly titled measures disclosed by other real estate investment trusts, may not be comparable to our FFO and AFFO measures.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Market Risk

Market risk is the exposure to loss resulting from changes in interest rates, foreign currency exchange rates and equity prices. The primary risks to which we are exposed are interest rate risk and foreign currency exchange risk. We are also exposed to further market risk as a result of concentrations of tenants in certain industries and/or geographic regions. Adverse market factors can affect the ability of tenants in a particular industry/region to meet their respective lease obligations. In order to manage this risk, we view our collective tenant roster as a portfolio, and in our investment decisions we attempt to diversify our portfolio so that we are not overexposed to a particular industry or geographic region.

Generally, we do not use derivative instruments to hedge credit/market risks or for speculative purposes. However, from time to time, we may enter into foreign currency forward contracts to hedge our foreign currency cash flow exposures.

Interest Rate Risk

The value of our real estate and related fixed rate debt obligations is subject to fluctuations based on changes in interest rates. The value of our real estate is also subject to fluctuations based on local and regional economic conditions and changes in the creditworthiness of lessees, all of which may affect our ability to refinance property-level mortgage debt when balloon payments are scheduled. Interest rates are highly sensitive to many factors, including governmental monetary and tax policies, domestic and international economic and political conditions, and other factors beyond our control. An increase in interest rates would likely cause the value of our owned and managed assets to decrease, which would create lower revenues from managed assets and lower investment performance for the managed funds. Increases in interest rates may also have an impact on the credit profile of certain tenants.

We are exposed to the impact of interest rate changes primarily through our borrowing activities. To limit this exposure, we attempt to obtain non-recourse mortgage financing on a long-term, fixed-rate basis. However, from time to time, we or our joint investment partners may obtain variable-rate non-recourse mortgage loans and, as a result, may enter into interest rate swap agreements or interest rate cap agreements with lenders that effectively convert the variable-rate debt service obligations of the loan to a fixed rate or limit the underlying interest rate from exceeding a specified strike rate, respectively. Interest rate swaps are agreements in which one party exchanges a stream of interest payments for a counterparty’s stream of cash flow over a specific period, and interest rate caps limit the effective borrowing rate of variable-rate debt obligations while allowing participants to share in downward shifts in interest rates. These interest rate swaps and caps are derivative instruments designated as cash flow hedges on the forecasted interest payments on the debt obligation. The notional, or face, amount on which the swaps or caps are based is not exchanged. Our objective in using these derivatives is to limit our exposure to interest rate movements. At March 31, 2013, we estimate that the net fair value of our interest rate swaps and caps, which are included in Other assets, net and Accounts payable, accrued expenses and other liabilities in the consolidated financial statements, was in a net liability position of $19.6 million.

W. P. Carey 3/31/2013 10-Q — 49

At March 31, 2013, a significant portion (approximately 80%) of our long-term debt either bore interest at fixed rates, was swapped or capped to a fixed rate, or bore interest at fixed rates that were scheduled to convert to then-prevailing market fixed rates at certain future points during their term. The annual interest rates on our fixed-rate debt at March 31, 2013 ranged from 2.7% to 10.0%. The annual interest rates on our variable-rate debt at March 31, 2013 ranged from 1.2% to 8.5%. Our debt obligations are more fully described under Financial Condition in Item 2 above. The following table presents principal cash flows based upon expected maturity dates of our debt obligations outstanding at March 31, 2013 (in thousands):

	2013 (remainder)		2014		2015		2016		2017		Thereafter		Total		Fair value
Fixed-rate debt (a)	$	52,259	$	284,914	$	220,048	$	80,984	$	117,547	$	572,049	$	1,327,801	$	1,329,037
Variable-rate debt (a)	$	31,591	$	387,374	$	10,821	$	6,918	$	9,433	$	233,671	$	679,808	$	675,530

(a)Amounts are based on the applicable exchange rates at March 31, 2013.

The estimated fair value of our fixed-rate debt and our variable-rate debt that currently bears interest at fixed rates or has effectively been converted to a fixed rate through the use of interest rate swaps or that has been subject to interest rate caps is affected by changes in interest rates. A decrease or increase in interest rates of 1% would change the estimated fair value of this debt at March 31, 2013 by an aggregate increase of $70.0 million or an aggregate decrease of $69.0 million, respectively. Annual interest expense on our unhedged variable-rate debt that does not bear interest at fixed-rates at March 31, 2013 would increase or decrease by $3.0 million for each respective 1% change in annual interest rates. As more fully described under Financial Condition — Summary of Financing in Item 2 above, a portion of the debt classified as variable-rate debt in the tables above bore interest at fixed rates at March 31, 2013 but has interest rate reset features that will change the fixed interest rates to then-prevailing market fixed rates at certain points during their term. Such debt is generally not subject to short-term fluctuations in interest rates.

Foreign Currency Exchange Rate Risk

We own investments in the European Union and Asia and as a result are subject to risk from the effects of exchange rate movements in various foreign currencies, primarily the euro, which may affect future costs and cash flows. We manage foreign currency exchange rate movements by generally placing our debt service obligation on an investment in the same currency as the tenant’s rental obligation to us. This reduces our overall exposure to the net cash flow from that investment. In addition, we may use currency hedging to further reduce the exposure to our equity cash flow. We are generally a net receiver of various foreign currencies (we receive more cash than we pay out), and therefore our foreign operations benefit from a weaker U.S. dollar, and are adversely affected by a stronger U.S. dollar, relative to the foreign currency. For the three months ended March 31, 2013, we recognized net realized and unrealized foreign currency transaction loss of $0.1 million and $1.0 million, respectively. These losses are included in Other income and (expenses) in the consolidated financial statements and were primarily due to changes in the value of the euro on accrued interest receivable on notes receivable from consolidated subsidiaries.

We enter into foreign currency forward contracts to hedge certain of our foreign currency cash flow exposures. A foreign currency forward contract is a commitment to deliver a certain amount of foreign currency at a certain price on a specific date in the future. The net estimated fair value of our foreign currency forward contracts, which are included in Other assets, net and Accounts payable, accrued expenses and other liabilities in the consolidated financial statements, was in a net asset position of $0.3 million at March 31, 2013. We obtain non-recourse mortgage financing in the local currency. To the extent that currency fluctuations increase or decrease rental revenues as translated to U.S. dollars, the change in debt service, as translated to U.S. dollars, will partially offset the effect of fluctuations in revenue and, to some extent, mitigate the risk from changes in foreign currency exchange rates.

Scheduled future minimum rents, exclusive of renewals, under non-cancelable operating leases for our consolidated foreign operations as of March 31, 2013, for the remainder of 2013, each of the next four years and thereafter, are as follows (in thousands):

Lease Revenues (a)	2013 (remainder)		2014		2015		2016		2017		Thereafter		Total
Euro	$	64,781	$	78,937	$	66,146	$	59,189	$	49,596	$	370,544	$	689,193
British pound sterling	1,027		1,482		1,482		1,482		1,482		29,909		36,864
	$	65,808	$	80,419	$	67,628	$	60,671	$	51,078	$	400,453	$	726,057

W. P. Carey 3/31/2013 10-Q — 50

Scheduled debt service payments (principal and interest) for mortgage notes payable for our consolidated foreign operations as of March 31, 2013 for the remainder of 2013, each of the next four years and thereafter, are as follows (in thousands):

Debt service (a) (b)	2013 (remainder)		2014		2015		2016		2017		Thereafter		Total
Euro (c)	$	59,262	$	185,447	$	172,282	$	26,882	$	13,287	$	215,184	$	672,344
British pound sterling (d)	529		775		10,409		-		-		-		11,713
	$	59,791	$	186,222	$	182,691	$	26,882	$	13,287	$	215,184	$	684,057

(a)Amounts are based on the applicable exchange rates at March 31, 2013. Contractual rents and debt obligations are denominated in the functional currency of the country of each property.

(b)Interest on unhedged variable-rate debt obligations was calculated using the applicable annual interest rates and balances outstanding at March 31, 2013.

(c)We estimate that for a 1% increase or decrease in the exchange rate between the euro and the U.S. dollar, there would be a corresponding change in the projected property level cash flow at March 31, 2013 of less than $0.1 million.

(d)We estimate that for a 1% increase or decrease in the exchange rate between the British pound sterling and the U.S. dollar, there would be a corresponding change in the projected property level cash flow at March 31, 2013 of $0.3 million.

As a result of scheduled balloon payments on our international non-recourse mortgage loans, projected debt service obligations exceed projected lease revenues in 2014 and 2015. In 2014 and 2015, balloon payments totaling $143.4 million and $158.9 million, respectively, are due in each year on several non-recourse mortgage loans that are collateralized by properties that we own with affiliates. We currently anticipate that, by their respective due dates, we will have refinanced certain of these loans, but there can be no assurance that we will be able to do so on favorable terms, if at all. If that has not occurred, we would expect to use our cash resources, including unused capacity on our Revolver, to make these payments, if necessary.

Item 4. Controls and Procedures.

Disclosure Controls and Procedures

Our disclosure controls and procedures include our controls and other procedures designed to provide reasonable assurance that information required to be disclosed in this and other reports filed under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) is recorded, processed, summarized and reported within the required time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to management, including our chief executive officer and chief financial officer, to allow timely decisions regarding required disclosures. It should be noted that no system of controls can provide complete assurance of achieving a company’s objectives and that future events may impact the effectiveness of a system of controls.

Our chief executive officer and chief financial officer, after conducting an evaluation, together with members of our management, of the effectiveness of the design and operation of our disclosure controls and procedures at March 31, 2013, have concluded that our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) were effective as of March 31, 2013 at a reasonable level of assurance.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting during our most recently completed fiscal quarter covered by this Quarterly Report on Form 10-Q that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

W. P. Carey 3/31/2013 10-Q — 51

PART II

Item 6. Exhibits, Financial Statement Schedules.

The following exhibits are filed with this Report, except where indicated.

Exhibit No.	Description
31.1	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32	Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	The following materials from W. P. Carey Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2013, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets at March 31, 2013 and December 31, 2012, (ii) Consolidated Statements of Income for the three months ended March 31, 2013 and 2012, (iii) Consolidated Statements of Comprehensive Income for the three months ended March 31, 2013 and 2012, (iv) Consolidated Statements of Equity for the three months ended March 31, 2013 and the year ended December 31, 2012, (v) Consolidated Statements of Cash Flows for the three months ended March 31, 2013 and 2012, and (vi) Notes to Consolidated Financial Statements.

W. P. Carey 3/31/2013 10-Q — 52

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		W. P. Carey Inc.
Date: May 7, 2013
	By:	/s/ Catherine D. Rice
		Catherine D. Rice
		Chief Financial Officer
		(Principal Financial Officer)
Date: May 7, 2013
	By:	/s/ Hisham A. Kader
		Hisham A. Kader
		Chief Accounting Officer
		(Principal Accounting Officer)

W. P. Carey 3/31/2013 10-Q — 53

EXHIBIT INDEX

The following exhibits are filed as part of this Report, except where indicated.

Exhibit No.	Description
31.1	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32	Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	The following materials from W. P. Carey Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2013, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets at March 31, 2013 and December 31, 2012, (ii) Consolidated Statements of Income for the three months ended March 31, 2013 and 2012, (iii) Consolidated Statements of Comprehensive Income for the three months ended March 31, 2013 and 2012, (iv) Consolidated Statements of Equity for the three months ended March 31, 2013 and the year ended December 31, 2012, (v) Consolidated Statements of Cash Flows for the three months ended March 31, 2013 and 2012, and (vi) Notes to Consolidated Financial Statements.

W. P. Carey 3/31/2013 10-Q — 54

EX-31.1

Exhibit 31.1

Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Trevor P. Bond, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of W. P. Carey Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an Annual Report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: May 7, 2013

/s/ Trevor P. Bond

Trevor P. Bond

Chief Executive Officer

W. P. Carey 3/31/2013 10-Q — 55

EX-31.2

Exhibit 31.2

Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Catherine D. Rice, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of W. P. Carey Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an Annual Report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: May 7, 2013

/s/ Catherine D. Rice

Catherine D. Rice

Chief Financial Officer

W. P. Carey 3/31/2013 10-Q — 56

EX-32

Exhibit 32

Certifications Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of W. P. Carey Inc. on Form 10-Q for the period ended March 31, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of W. P. Carey Inc., does hereby certify, to the best of such officer’s knowledge and belief, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of W. P. Carey Inc.

Date: May 7, 2013

/s/ Trevor P. Bond

Trevor P. Bond

Chief Executive Officer

Date: May 7, 2013

/s/ Catherine D. Rice

Catherine D. Rice

Chief Financial Officer

The certification set forth above is being furnished as an exhibit solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and is not being filed as part of the Report as a separate disclosure document of W. P. Carey Inc. or the certifying officers.

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to W. P. Carey Inc. and will be retained by W. P. Carey Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

W. P. Carey 3/31/2013 10-Q — 57

XML

Agreements and Transactions of Related Parties (Details 3) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Due from affiliates
Deferred acquistion fees receivable	$ 21,530	$ 28,655
Reimbursable costs	5,640	1,457
Organization and offering costs	5,066	4,920
Accounts receivable	2,371	181
Asset management fee receivable	18	789
Due from affiliates	34,625	36,002
Due to affiliates
Due to the Estate	40,000
Due to other affiliates	673	673
Due to affiliates	$ 40,673	$ 673

XML

Intangible Assets and Liabilities and Goodwil (Details 3) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Amortizable Intangible Assets
Net amortizable intangible assets	$ 626,697
Unamortizable Goodwill and Indefinite-Lived Intangible Assets
Goodwill	328,474	329,132
Trade name	3,975	3,975
Indefinite lived intangible assets net, including goodwill	1,174,027	1,142,277
Intangible assets net including goodwill	1,074,935	1,066,495
Amortizable Intangible Liabilities
Amortized and unamortizable intangible liabilities, gross	(138,104)	(109,778)
Less: accumulated amortization	5,604	3,330
Net intangible liabilities	(132,500)	(106,448)
Below-market rent
Amortizable Intangible Liabilities
Amortized and unamortizable intangible liabilities, gross	(114,497)	(86,171)
Less: accumulated amortization	5,399	3,227
Net intangible liabilities	(109,098)	(82,944)
Above-market ground lease
Amortizable Intangible Liabilities
Amortized and unamortizable intangible liabilities, gross	(6,896)	(6,896)
Less: accumulated amortization	205	103
Net intangible liabilities	(6,691)	(6,793)
Below-market purchase options
Amortizable Intangible Liabilities
Amortized and unamortizable intangible liabilities, gross	(16,711)	(16,711)
Less: accumulated amortization	0	0
Net intangible liabilities	(16,711)	(16,711)
Management contracts
Amortizable Intangible Assets
Finite lived intangible assets, gross	32,765	32,765
Less: accumulated amortization	(31,561)	(31,283)
Net amortizable intangible assets	1,204	1,482
Internal-use software development costs
Amortizable Intangible Assets
Finite lived intangible assets, gross	600
Less: accumulated amortization	0
Net amortizable intangible assets	600
Lease Intangible
Amortizable Intangible Assets
Finite lived intangible assets, gross	808,213	776,405
Less: accumulated amortization	(67,531)	(44,499)
Net amortizable intangible assets	740,682	731,906
In-place lease | Lease Intangible
Amortizable Intangible Assets
Finite lived intangible assets, gross	509,394	474,629
Less: accumulated amortization	(41,262)	(27,351)
Net amortizable intangible assets	468,132	447,278
Tenant relationship | Lease Intangible
Amortizable Intangible Assets
Finite lived intangible assets, gross	8,143	8,149
Less: accumulated amortization	(3,438)	(3,406)
Net amortizable intangible assets	4,705	4,743
Above-market rent | Lease Intangible
Amortizable Intangible Assets
Finite lived intangible assets, gross	290,676	293,627
Less: accumulated amortization	(22,831)	(13,742)
Net amortizable intangible assets	$ 267,845	$ 279,885

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Equity Investment in Real Estate and the Managed REITs (Details 3) (Managed REITs, USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Managed REITs
Equity Method Investment Summarized Financial Information
Real estate, net	$ 6,193,018	$ 6,049,926
Other assets	2,025,509	2,002,620
Assets	8,218,527	8,052,546
Debt	(3,676,503)	(3,509,394)
Accounts payable, accrued expenses, and other liabilities	(456,211)	(450,362)
Liabilities	(4,132,714)	(3,959,756)
Reedemable noncontrolling interest	(21,094)	(21,747)
Noncontrolling interests	(167,140)	(170,140)
Partners'/stockholders' equity	$ 3,897,579	$ 3,900,903

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Stock-Based Compensation and Equity (Narratives) (Details) (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Stock-Based and Other Compensation Additional Disclosures
Allcoated share-based compensation expense	$ 9.1	$ 5.2
Fair value of vested stock	24.1
Excercised - shares	44,897
Options exercised during the period, aggeregate instrinsic value	1.3
Fair Value Assumptions Method Used	The grant date fair value of RSUs are based on our stock price on the date of grant. The grant date fair value of PSUs were determined by utilizing a Monte Carlo simulation model to generate a range of possible future stock prices for both us and the plan defined peer index over the three-year performance period. To estimate the fair value of PSUs granted during the three months ended March 31, 2013, we used a risk-free interest rate of 0.37% and an expected volatility rate of 25.36% (the plan defined peer index assumes 24.83%) and assumed a dividend yield of zero.
Risk Free Interest Rate	0.37%
Fair Value Assumptions Expected Volatility Rate	25.36%
Fair Value Assumptions Expected Volatility Rate Peer Index	24.83%
Fair Value Assumptions Expected Dividend Rate	0.00%
Performance Stock Units
Stock-Based and Other Compensation Additional Disclosures
Unrecognized stock based compensation expense	27.9
Restricted Stock Units
Stock-Based and Other Compensation Additional Disclosures
Unrecognized stock based compensation expense	$ 21.6

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Intangible Assets and Liabilities and Goodwil (Details 4) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013
Finite Lived Intangible Assets Future Amortization Expense [Abstract]
2013 (remainder)	$ 64,361
2014	81,140
2015	73,693
2016	71,759
2017	68,451
Thereafter	267,293
Amortizable intangible assets	$ 626,697

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Segment Reporting (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
Segment Reporting Information Profit Loss
Revenues	$ 113,386	$ 68,314
Operating expenses	(82,982)	(56,680)
Interest expense	(26,906)	(7,280)
Other, net	10,459	15,416
Beneft from (provision for) income taxes	1,233	(1,695)
Income from continuing operations attributable to W.P. Carey	15,190	18,075
Segment Reporting Asset Balances
Net investments in real estate	3,252,070		3,241,199
Goodwill	328,474		329,132
In Place Leases Net	468,132		447,278
Above Market Rent Net	267,845		279,885
Other Intangible Assets Net	10,484		10,200
Total Long-Lived Assets	4,325,500		4,306,251
Total Assets	4,609,614		4,609,042
Investment Management
Segment Reporting Information Profit Loss
Revenues	29,548	45,764
Operating expenses	(35,296)	(43,223)
Other, net	855	1,278
Beneft from (provision for) income taxes	2,382	(622)
Income from continuing operations attributable to W.P. Carey	(2,511)	3,197
Segment Reporting Asset Balances
Goodwill	63,607		63,607
Other Intangible Assets Net	5,780		5,651
Total Long-Lived Assets	69,387		69,258
Total Assets	268,958		124,221
Real Estate Ownership
Segment Reporting Information Profit Loss
Revenues	83,838	22,550
Operating expenses	(47,686)	(13,457)
Interest expense	(26,906)	(7,280)
Other, net	9,604	14,138
Beneft from (provision for) income taxes	(1,149)	(1,073)
Income from continuing operations attributable to W.P. Carey	17,701	14,878
Segment Reporting Asset Balances
Net investments in real estate	3,250,565		3,239,755
Goodwill	264,867		265,525
In Place Leases Net	468,132		447,278
Above Market Rent Net	267,845		279,885
Other Intangible Assets Net	4,704		4,550
Total Long-Lived Assets	4,256,113		4,236,993
Total Assets	$ 4,340,656		$ 4,484,821

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Equity Investment in Real Estate and the Managed REITs (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Investmens in REITs
Equity earnings from equity investments in the Managed REITs	$ 22	$ 1,848
Other-than- temporary impairment charges on CPA:16-Global operating partnership	(2,684)	(298)
Distributions of Available Cash (Note 3)	7,891	6,974
Deferred revenue earned (Note 3)	2,123	2,123
Equity income from the Managed REIT's	7,352	10,647
Equity from other equity investments	3,304	3,339
Total income from equity investments in real estate and the Managed REIT's	$ 10,656	$ 13,986

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Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2013

Segment Reporting

Reconciliation of Operating Profit (Loss) from Segments to Consolidated

##SL
	Three Months Ended March 31,
	2013		2012
Real Estate Ownership (a)
Revenues	$	83,838	$	22,550
Operating expenses		(47,686)		(13,457)
Interest expense		(26,906)		(7,280)
Other, net (b)		9,604		14,138
Provision for income taxes		(1,149)		(1,073)
Income from continuing operations attributable to W. P. Carey	$	17,701	$	14,878
Investment Management
Revenues (c)	$	29,548	$	45,764
Operating expenses (c)		(35,296)		(43,223)
Other, net (d)		855		1,278
Benefit from (provision for) income taxes		2,382		(622)
(Loss) income from continuing operations attributable to W. P. Carey	$	(2,511)	$	3,197
Total Company
Revenues (c)	$	113,386	$	68,314
Operating expenses (c)		(82,982)		(56,680)
Interest expense		(26,906)		(7,280)
Other, net (b) (d)		10,459		15,416
Benefit from (provision for) income taxes		1,233		(1,695)
Income from continuing operations attributable to W. P. Carey	$	15,190	$	18,075

Reconciliation Of Assets From Segment To Consolidated

	Total Long-Lived Assets at				Total Assets at
	March 31, 2013		December 31, 2012		March 31, 2013		December 31, 2012
Real Estate Ownership:
Net investments in real estate	$	3,250,565	$	3,239,755
Goodwill		264,867		265,525
In-place lease, net		468,132		447,278
Above-market rent, net		267,845		279,885
Other intangible assets, net		4,704		4,550
Total		4,256,113		4,236,993	$	4,340,656	$	4,484,821
Investment Management:
Goodwill		63,607		63,607
Other intangible assets, net		5,780		5,651
Total		69,387		69,258		268,958		124,221
Total Company	$	4,325,500	$	4,306,251	$	4,609,614	$	4,609,042

Schedule Of International Investment By Segment

	Three Months Ended March 31,
	2013		2012
Lease revenues	$	20,701	$	2,563
Income from equity investments in real estate		1,081		1,539
	$	21,782	$	4,102

	March 31, 2013		December 31, 2012
Long-lived assets	$	839,481	$	875,796

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Segment Reporting (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
Segment Reporting Information Profit Loss
Lease revenues	$ 75,297	$ 16,778
Income from equity investments in real estate	10,656	13,986
Segment Reporting Asset Balances
Long-Lived Assets	4,325,500		4,306,251
International
Segment Reporting Information Profit Loss
Lease revenues	20,701	2,563
Income from equity investments in real estate	1,081	1,539
International Revenue	21,782	4,102
Segment Reporting Asset Balances
Long-Lived Assets	$ 839,481		$ 875,796

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Stock-Based Compensation and Equity (Details 3) (USD $) In Thousands, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
Redeemable Securities
Balance- beginning of period	$ 7,531	$ 7,700	$ 7,700
Redemption value adjustment	0	79	(840)
Net loss	(50)	(43)
Distributions	(54)	(816)
Change in other comprehensive (loss) income	23	(9)
Balance- end of period	$ 7,404	$ 6,929	$ 7,531

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Fair Value Measurements (Details 1) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Level 2
Liabilities:
Senior Credit Facility	$ 298,000	$ 253,000
Level 3
Liabilities:
Non-recourse debt	1,706,567	1,727,985
Assets:
Deferred acquisiton fees receivable	25,330	33,632
Carrying Value | Level 2
Liabilities:
Senior Credit Facility	298,000	253,000
Carrying Value | Level 3
Liabilities:
Non-recourse debt	1,695,335	1,715,397
Assets:
Deferred acquisiton fees receivable	$ 21,531	$ 28,654

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Discontinued Operations (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Disposal Group, Including Discontinued Operation, Income Statement Disclosures
Revenues	$ 168	$ 1,820
Expenses	(316)	(1,700)
Gain on extinguishment of debt	70
Loss on sale of real estate	(931)	(181)
Impairment charges	0	(5,724)
Loss from discontinued operations	$ (1,009)	$ (5,785)

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Segment Reporting (Narratives) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Segment Reporting Information Profit Loss
Reimbursed costs from affiliates	$ 11,968	$ 18,737
CPA: 16 - Global | Real Estate Ownership
Segment Reporting Information Profit Loss
Percentage of total investment in REIT	6.70%

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Stock-Based Compensation and Equity (Details 1) (USD $)	3 Months Ended
	Mar. 31, 2013
Restricted Stock And RSU Awards
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares
Nonvested, beginning balance - shares	594,194
Granted - shares	166,554
Vested - shares	(233,098)
Forfeited - shares	(12,501)
Adjustments - shares	0
Novested, ending balance - shares	515,149
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value
Novested, beginning balance, weighted average grant date fair value	$ 37.15
Granted, weighted average grant date fair value	$ 56.67
Vested, weighted average grant date fair value	$ 37.18
Forfeited, weighted average grant date fair value	$ 38.49
Adjustments, weighted average grant date fair value	$ 0
Novested, weighted average grant date fair value	$ 44.51
Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares
Nonvested, beginning balance - shares	999,513
Granted - shares	85,900
Vested - shares	(323,872)
Forfeited - shares	(25,000)
Adjustments - shares	317,931
Novested, ending balance - shares	1,054,472
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value
Novested, beginning balance, weighted average grant date fair value	$ 34.55
Granted, weighted average grant date fair value	$ 84.38
Vested, weighted average grant date fair value	$ 39.46
Forfeited, weighted average grant date fair value	$ 50.71
Adjustments, weighted average grant date fair value	$ 52.64
Novested, weighted average grant date fair value	$ 54.89

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Finance Receivables (Tables)

3 Months Ended

Mar. 31, 2013

Finance Receivables

Finance Receivables Credit Quality Indicators

	Number of Tenants at		Net Investments in Direct Financing Leases at
Internal Credit Quality Indicator	March 31, 2013	December 31, 2012	March 31, 2013		December 31, 2012
1	3	3	$	46,386	$	46,398
2	3	4		28,192		49,764
3	8	8		269,573		257,281
4	3	4		19,927		22,562
5	-	-		-		-
			$	364,078	$	376,005

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Equity Investment in Real Estate and the Managed REITs (Details 5) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Investmens in REITs
Equity method investments	$ 564,092	$ 565,626
Real Estate Investments
Investmens in REITs
Equity method investments	211,065	212,481
Advanced Micro Devices | Real Estate Investments
Investmens in REITs
Equity method investment, ownership percentage	33.00%
Equity method investments	24,027	23,667
Builders FirstSource, Inc. | Real Estate Investments
Investmens in REITs
Equity method investment, ownership percentage	40.00%
Equity method investments	5,097	5,138
C1000 Logestiek Vastgoed B.V. | Real Estate Investments
Investmens in REITs
Equity method investment, ownership percentage	15.00%
Equity method investments	13,824	14,929
Del Monte Corporation | Real Estate Investments
Investmens in REITs
Equity method investment, ownership percentage	50.00%
Equity method investments	7,969	8,318
The Upper Deck Company | Real Estate Investments
Investmens in REITs
Equity method investment, ownership percentage	50.00%
Equity method investments	7,187	7,198
Waldaschaff Automotive GmbH and Wagon Automotive Nagold GmbH | Real Estate Investments
Investmens in REITs
Equity method investment, ownership percentage	33.00%
Equity method investments	6,173	6,323
The Talaria Company (Hinckley) | Real Estate Investments
Investmens in REITs
Equity method investment, ownership percentage	30.00%
Equity method investments	7,842	7,702
PETsMart, Inc. | Real Estate Investments
Investmens in REITs
Equity method investment, ownership percentage	30.00%
Equity method investments	3,825	3,808
SaarOTEC | Real Estate Investments
Investmens in REITs
Equity method investment, ownership percentage	50.00%
Equity method investments	(176)	(116)
SchulerA.G. | Real Estate Investments
Investmens in REITs
Equity method investment, ownership percentage	67.00%
Equity method investments	62,564	62,006
The New York Times Company | Real Estate Investments
Investmens in REITs
Equity method investment, ownership percentage	18.00%
Equity method investments	20,836	20,584
U.S. Airways Group, Inc. | Real Estate Investments
Investmens in REITs
Equity method investment, ownership percentage	75.00%
Equity method investments	7,928	7,995
Consolidated Systems, Inc. | Real Estate Investments
Investmens in REITs
Equity method investment, ownership percentage	60.00%
Equity method investments	3,249	3,278
Hellweg Die Profi-Baumarkte GmbH & Co. K.G | Real Estate Investments
Investmens in REITs
Equity method investment, ownership percentage	40.00%
Equity method investments	40,236	42,387
Wanbishi Archives Co. Ltd. | Real Estate Investments
Investmens in REITs
Equity method investment, ownership percentage	3.00%
Equity method investments	$ 484	$ (736)

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Net Investments in Properties (Details 1) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Real Estate Investment Property At Cost
Accumulated depreciation (inclusive of amounts attributable to consolidated VIEs of $16,648 and $16,110, respectively)	$ (150,207)	$ (136,068)
Net investments in properties	2,322,395	2,298,123
Real Estate
Real Estate Investment Property At Cost
Land	521,032	509,530
Buildings	1,852,880	1,824,958
Accumulated depreciation (inclusive of amounts attributable to consolidated VIEs of $16,648 and $16,110, respectively)	(129,580)	(116,075)
Net investments in properties	2,244,332	2,218,413
Operating Real Estate
Real Estate Investment Property At Cost
Land	21,962	22,158
Buildings	76,728	77,545
Accumulated depreciation (inclusive of amounts attributable to consolidated VIEs of $16,648 and $16,110, respectively)	(20,627)	(19,993)
Net investments in properties	$ 78,063	$ 79,710

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Discontinued Operations (Narratives) (Details) (USD $)	1 Months Ended		3 Months Ended		12 Months Ended
	Feb. 28, 2013 property	Apr. 30, 2012	Mar. 31, 2013 property	Mar. 31, 2012 property	Dec. 31, 2012	Dec. 31, 2011	Jan. 31, 2012 property
Discontinued Operation Additional Disclosures
Gain on extinguishment of debt			$ 70,000
Goodwill write-off			658,000
Domestic
Discontinued Operation Additional Disclosures
Properties sold	1		2	2			1
Proceeds from the sale of properties	3,100,000	13,200,000	11,000,000	2,400,000
Gain (loss) on sale of property			(300,000)	(200,000)
Impairment recognized on asset to be disposed				2,400,000	200,000	5,800,000
Payment of mortgage obligation			5,700,000
Goodwill write-off			658,000
Domestic | Two Properties
Discontinued Operation Additional Disclosures
Impairment recognized on asset to be disposed						$ 800,000

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Agreements and Transactions of Related Parties (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Asset management fees:
Asset management revenue from affiliates	$ 10,015	$ 15,602
Structuring revenue	6,342	7,638
Dealer manager fees	1,223	3,787
Reimbursed costs from affiliates	11,968	18,737
Distributions of Available Cash (Note 3)	7,891	6,974
Deferred revenue earned (Note 3)	2,123	2,123
Revenue earned and cash received from REITs	$ 39,562	$ 54,861

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Intangible Assets and Liabilities and Goodwil (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013
Below-market rent
Lease intangible:
Acquired intangible assets/liability weighted-average life	20 years
Amortizable Intangible Liabilities
Finite lived intangible liability acquired	$ (28,646)
Acquired intangible assets/liability weighted-average life	20 years
In-place lease
Lease intangible:
Finite-lived intangible assets acquired	$ 41,963
Acquired intangible assets/liability weighted-average life	10 years
Amortizable Intangible Liabilities
Acquired intangible assets/liability weighted-average life	10 years

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Risk Management and Use of Derivative Financial Instruments (Details 8) In Thousands, unless otherwise specified		3 Months Ended
	Mar. 31, 2013 USD ($)	Mar. 31, 2013 Forward contracts USD ($)	Mar. 31, 2013 Forward contracts EUR (€)	Mar. 31, 2013 Forward contracts Minimum	Mar. 31, 2013 Forward contracts Maximum	Mar. 31, 2013 Forward Contract Two USD ($)	Mar. 31, 2013 Forward Contract Two EUR (€)	Mar. 31, 2013 Forward Contract Two Minimum	Mar. 31, 2013 Forward Contract Two Maximum
Derivative Disclosure
Notional Amount			€ 47,669				€ 8,700
Floor price		1.28	1.28			1.35	1.35
Cap price		1.30	1.30			1.35	1.35
Effective Date		May 01, 2012	May 01, 2012			Dec. 01, 2012	Dec. 01, 2012
Expiration Date				Jun. 01, 2013	Jun. 01, 2017			Sep. 01, 2017	Mar. 01, 2018
Fair Value	$ 262	$ (68)				$ 330

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Risk Management and Use of Derivative Financial Instruments (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss) Activity
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net	$ 3,073	$ 291
Interest rate swap
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss) Activity
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net	828	291
Interest rate cap
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss) Activity
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net	(3)	0
Foreign currency contracts
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss) Activity
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net	$ 2,248	$ 0

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Equity Investment in Real Estate and the Managed REITs (Details 2) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Investmens in REITs
Equity method investments	$ 564,092	$ 565,626
Managed REITs
Investmens in REITs
Equity method investments	353,027	353,145
Managed REITs | CPA: 16 - Global
Investmens in REITs
Equity method investment, ownership percentage	18.456%	18.33%
Equity method investments	294,339	296,301
Managed REITs | CPA:16 - Global operating partnership
Investmens in REITs
Equity method investment, ownership percentage	0.015%	0.015%
Equity method investments	14,220	17,140
Managed REITs | CPA: 17 - Global
Investmens in REITs
Equity method investment, ownership percentage	1.429%	1.29%
Equity method investments	43,368	38,977
Managed REITs | CPA:17 - Global operating partnership
Investmens in REITs
Equity method investment, ownership percentage	0.015%	0.015%
Managed REITs | CWI
Investmens in REITs
Equity method investment, ownership percentage	0.447%	0.40%
Equity method investments	1,147	774
Managed REITs | CWI operating partnership
Investmens in REITs
Equity method investment, ownership percentage	0.015%	0.015%
Equity method investments	$ (47)	$ (47)

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Business and Organization

3 Months Ended

Mar. 31, 2013

Business Organization and Basis of Presentation

Business

Note 1.Business and Organization

W. P. Carey Inc.(“W. P. Carey” and, together with its consolidated subsidiaries and predecessors, “we”, “us” or “our”) is a real estate investment trust (“REIT”) that seeks to achieve superior, risk-adjusted returns by providing long-term net-lease financing via sale-leaseback and build-to-suit transactions for companies worldwide. We invest primarily in commercial properties domestically and internationally. We earn revenue principally by leasing the properties we own to single corporate tenants, primarily on a triple-net leased basis, which requires each tenant to pay substantially all of the costs associated with operating and maintaining the property. We also earn revenue as the advisor to publicly-owned, non-listed REITs.

Since our founding in 1973, we have maintained a singular focus on providing investors with a steady source of income accompanied with capital preservation. Since 1979, we have sponsored a series of sixteen income-generating funds that invest in real estate, under the Corporate Property Associates brand name (the “CPA®REITs”). We are currently the advisor to Corporate Property Associates 16 – Global Incorporated (“CPA®:16 – Global”) and Corporate Property Associates 17 – Global Incorporated (“CPA®:17 – Global”). We are also the advisor to Carey Watermark Investors Incorporated (“CWI” and, together with CPA®:16 – Global and CPA®:17 – Global, the “Managed REITs”), which invests in lodging and lodging-related properties.

We were formed as a corporation under the laws of Maryland on February 15, 2012. On September 28, 2012, Corporate Property Associates 15 Incorporated (“CPA®:15”) merged with and into us, with CPA®:15 surviving as an indirect, wholly-owned subsidiary of ours (the “Merger”). In connection with the Merger, W. P. Carey & Co. LLC (our “predecessor”), which was formed under the laws of Delaware on July 15, 1996, completed an internal reorganization whereby our predecessor and its subsidiaries merged with and into us with W. P. Carey as the surviving corporation, succeeding to and continuing to operate the existing business of our predecessor (“REIT Reorganization”). Upon completion of the Mergerand the REIT Reorganization, the shares ofour predecessor were delisted from the New York Stock Exchange (“NYSE”) and canceled, and our common stock became listed on the NYSE under the same symbol, “WPC.”

Primary ReportableSegments

Real Estate Ownership — We own and invest in commercial properties primarily in the United States (“U.S.”) and Europe that are leased to companies, primarily on a triple-net lease basis.At March 31, 2013, our portfolio was comprised of our full or partial ownership interest in 422 properties. Substantially all of these properties, totaling approximately 39.0 million square feet, were net leased to 124 tenants, with an occupancy rate of approximately 98.8%.Collectively, at March 31, 2013, the Managed REITs owned all or a portion of over 703 properties, including certain properties in which we have an ownership interest. Substantially all of these properties, totaling approximately 78.6 million square feet, were net leased to 211 tenants, with an average occupancy rate of approximately 98.4%.

We earn lease revenues from our wholly-owned and co-owned real estate investments. In addition, we generate equity income through our investments in the shares of the Managed REITs (Note6). Through our special member interests in the operating partnerships of the Managed REITs, we also participate in their cash flows (Note3). Lastly, we earn other real estate revenues through our investments in self-storage facilities and a hotel in the U.S.

Investment Management — We earn revenue as the advisor to the Managed REITs. Under the respective advisory agreements with each of the Managed REITs, we perform various services, including the day-to-day management of the Managed REITs and transaction-related services. We structure and negotiate investments and debt placement transactions for the Managed REITs, for which we earn structuring revenue, and manage their portfolios of real estate investments, for which we earn asset management revenue.

We generate acquisition revenue when we structure and negotiate investments and related financing for the Managed REITs. We may also be entitled, subject to the approval by the boards of directors of certain of the Managed REITs, to fees for structuring loan refinancings. This loan refinancing revenue, together with the acquisition revenue, is referred to as structuring revenue. We earn ongoing asset management revenue from each Managed REIT, which is based on average invested assets and is calculated according to the advisory agreement for each Managed REIT. We may also earn revenue related to the disposition of properties, subject to subordination provisions, which will only be recognized as the relevant conditions are met. Such revenue may include subordinated disposition revenue when assets are sold as well as a percentage of the net cash proceeds distributable to stockholders from the disposition of properties, after recoupment by stockholders of their initial investment plus a specified preferred return. We may earn incentive or termination revenue in connection with providing liquidity to the stockholders of the Managed REITs, although these events do not occur every year. We will not receive a termination payment in circumstances where we receive subordinated incentive revenue.

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Risk Management and Use of Derivative Financial Instruments (Details 3) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Amount of Gain (Loss) Reclassified from Other Comprehensive Income into Income (Effective Portion)
Amount of Gain (Loss) Reclassified from Other Comprehensive Income into Income (Effective Portion)	$ (387)	$ (335)
Interest rate swap
Amount of Gain (Loss) Reclassified from Other Comprehensive Income into Income (Effective Portion)
Amount of Gain (Loss) Reclassified from Other Comprehensive Income into Income (Effective Portion)	(434)	(335)
Foreign currency contracts
Amount of Gain (Loss) Reclassified from Other Comprehensive Income into Income (Effective Portion)
Amount of Gain (Loss) Reclassified from Other Comprehensive Income into Income (Effective Portion)	$ 47

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Finance Receivables (Narratives) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013
Finance Receivables
Financing receivable credit quality additional information	We generally seek investments in facilities that we believe are critical to a tenant’s business and that we believe have a low risk of tenant defaults. At both March 31, 2013 and December 31, 2012, none of our finance receivables were past due and we had not established any allowances for credit losses.
Financing receivable credit quality range of dates ratings updated	first quarter of 2013
Reclassification from direct financing lease	$ 5.6

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Risk Management and Use of Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2013

Risk Management and Use of Derivative Financial Instruments

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

##SL
Derivatives Designated		Asset Derivatives Fair Value at				Liability Derivatives Fair Value at
as Hedging Instruments	Balance Sheet Location	March 31, 2013		December 31, 2012		March 31, 2013		December 31, 2012
Foreign currency contracts	Other assets, net	$	335	$	-	$	-	$	-
Interest rate cap	Other assets, net		20		25		-		-
Foreign currency contracts	Accounts payable, accrued
	expenses and other liabilities		-		-		(73)		(2,067)
	expenses and other liabilities						(5,045)		(5,825)
Derivatives Not Designated
as Hedging Instruments
Stock warrants (a)	Other assets, net		2,000		1,720		-		-
Interest rate swaps (b)	Accounts payable, accrued
	expenses and other liabilities		-		-		(14,556)		(16,686)
Total derivatives		$	2,355	$	1,745	$	(19,674)	$	(24,578)

Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss)

	Amount of Gain (Loss) Recognized in
	Other Comprehensive (Loss) Income
	on Derivatives (Effective Portion) (a)
	Three Months Ended March 31,
Derivatives in Cash Flow Hedging Relationships	2013		2012
Interest rate swaps	$	828	$	291
Interest rate cap		(3)		-
Foreign currency contracts		2,248		-
Total	$	3,073	$	291

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

	Amount of Gain (Loss) Reclassified
	from Other Comprehensive (Loss) Income
	into Income (Effective Portion)
	Three Months Ended March 31,
Derivatives in Cash Flow Hedging Relationships	2013		2012
Interest rate swaps	$	(434)	$	(335)
Foreign currency contracts		47		-
Total	$	(387)	$	(335)

		Amount of Gain (Loss) Recognized in
		Income on Derivatives
Derivatives Not in Cash Flow	Location of Gain (Loss)	Three Months Ended March 31,
Hedging Relationships	Recognized in Income	2013		2012
Interest rate swaps	Other income and (expenses)	$	1,679	$	-
Stock warrants	Other income and (expenses)		280		-
Total		$	1,959	$	-

Schedule of Derivative Instruments

		Notional		Effective	Effective	Expiration	Fair Value at
Description	Type	Amount		Interest Rate	Date	Date	March 31, 2013
3-Month Euro Interbank Offered Rate (“Euribor”)	“Pay-fixed” swap	€	6,266	4.2%	3/2008	3/2018	$	(1,247)
1-Month London Interbank Offered rate (“LIBOR”)	“Pay-fixed” swap	$	4,380	3.0%	4/2010	4/2015		(221)
1-Month LIBOR	“Pay-fixed” swap	$	33,484	3.0%	7/2010	7/2020		(3,306)
1-Month LIBOR	“Pay-fixed” swap	$	6,858	4.4%	6/2012	3/2022		(58)
1-Month LIBOR	“Pay-fixed” swap	$	25,494	3.9%	8/2012	8/2022		(153)
3-Month Euribor	Interest rate cap	€	68,228	2.0%	12/2012	12/2014		20
1-Month LIBOR	“Pay-fixed” swap	$	3,471	3.7%	12/2012	2/2019		(25)
3-Month Euribor	“Pay-fixed” swap	€	2,250	1.2%	3/2013	3/2020		(35)
							$	(5,025)
XBRL Tagging

			Notional		Effective	Effective	Expiration	Fair Value at
Description	(a) (b)	Type	Amount		Interest Rate	Date	Date	March 31, 2013
3-Month Euribor		“Pay-fixed” swap	€	100,000	3.7%	7/2006	7/2016	$	(13,273)
3-Month Euribor		“Pay-fixed” swap	€	15,970	0.9%	4/2012	7/2013		(44)
3-Month Euribor		“Pay-fixed” swap	€	6,388	4.4%	4/2008	10/2015		(416)
3-Month Euribor		“Pay-fixed” swap	€	5,450	4.3%	4/2007	7/2016		(823)
								$	(14,556)

		Ownership
		Interest in Investee		Notional				Effective	Expiration	Fair Value at
Description		at March 31, 2013	Type	Amount		Cap Rate	Spread	Date	Date	March 31, 2013
3-Month LIBOR	(a)	17.8%	Interest rate cap	$	118,374	4.0%	4.8%	8/2009	8/2014	$	-
1-Month LIBOR	(b)	79.0%	Interest rate cap		17,146	3.0%	4.0%	9/2009	4/2014		-

	Notional		Strike		Effective	Expiration	Fair Value at
Type	Amount		Price		Date	Date	March 31, 2013
Foreign currency forward contracts	€	47,669	$	1.28 - 1.30	5/2012	6/2013 - 6/2017	$	(68)
Foreign currency forward contracts	€	8,700	$	1.35	12/2012	9/2017 - 3/2018		330
							$	262

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2013

Fair Value Disclosures

Schedule Of Other Financial Instruments In Carrying Values And Fair Values

			March 31, 2013				December 31, 2012
		Level	Carrying Value		Fair Value		Carrying Value		Fair Value
Non-recourse debt	(a)	3	$	1,695,335	$	1,706,567	$	1,715,397	$	1,727,985
Senior Credit Facility		2		298,000		298,000		253,000		253,000
Deferred acquisition fees receivable	(b)	3		21,531		25,330		28,654		33,632

Schedule Of Fair Value Impairment Charges Using Unobservable Inputs Nonrecurring Basis

		Three Months Ended March 31, 2013				Three Months Ended March 31, 2012
		Total Fair Value		Total Impairment		Total Fair Value		Total Impairment
		Measurements		Charges		Measurements		Charges
Net investments in properties	(a) (b)	$	3,350	$	2,208	$	-	$	-
Operating real estate	(a) (c)		3,812		1,071		-		-
Total impairment charges included in expenses			7,162		3,279		-		-
Equity investments in real estate	(d)		14,220		2,684		27,460		298
Total impairment charges included in income from continuing operations			21,382		5,963		27,460		298
Impairment charges included in discontinued operations	(a) (e)		-		-		27,047		5,724
Total impairment charges		$	21,382	$	5,963	$	54,507	$	6,022

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Fair Value Measurements (Narratives) (Details)	3 Months Ended
	Mar. 31, 2013
Maximum | CPA: 16 - Global
Fair value inputs
Discount rate	15.75%
Gen and admin to assets ratio	0.45%
Maximum | Redeemable Noncontrolling Interest
Fair value inputs
Discount rate	26.00%
Lack of Marketability	30.00%
EBITDA Multiple	5
Maximum | Deferred Acquisition Fees Receivable
Fair value inputs
Leverage adjusted unsecured spread	3.25%
Illiquidity Adjustment	1.00%
Minimum | CPA: 16 - Global
Fair value inputs
Discount rate	12.75%
Gen and admin to assets ratio	0.35%
Minimum | Redeemable Noncontrolling Interest
Fair value inputs
Discount rate	22.00%
Lack of Marketability	20.00%
EBITDA Multiple	3
Minimum | Deferred Acquisition Fees Receivable
Fair value inputs
Leverage adjusted unsecured spread	2.75%
Illiquidity Adjustment	0.50%

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Finance Receivables (Details 1) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012	Mar. 31, 2012 tenant
Credit Quality Of Finanace Receivables
Number of tenants			124
Net investments in direct financing leases (inclusive of amounts attributable to consolidated VIEs of $23,900 and $23,921, respectively)	$ 364,078	$ 376,005
Internally Assigned Grade1
Credit Quality Of Finanace Receivables
Number of tenants	3	3
Net investments in direct financing leases (inclusive of amounts attributable to consolidated VIEs of $23,900 and $23,921, respectively)	46,386	46,398
Internally Assigned Grade2
Credit Quality Of Finanace Receivables
Number of tenants	3	4
Net investments in direct financing leases (inclusive of amounts attributable to consolidated VIEs of $23,900 and $23,921, respectively)	28,192	49,764
Internally Assigned Grade3
Credit Quality Of Finanace Receivables
Number of tenants	8	8
Net investments in direct financing leases (inclusive of amounts attributable to consolidated VIEs of $23,900 and $23,921, respectively)	269,573	257,281
Internally Assigned Grade4
Credit Quality Of Finanace Receivables
Number of tenants	3	4
Net investments in direct financing leases (inclusive of amounts attributable to consolidated VIEs of $23,900 and $23,921, respectively)	19,927	22,562
Internally Assigned Grade5
Credit Quality Of Finanace Receivables
Number of tenants
Net investments in direct financing leases (inclusive of amounts attributable to consolidated VIEs of $23,900 and $23,921, respectively)	$ 0	$ 0

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Debt (Tables)

3 Months Ended

Mar. 31, 2013

Debt Disclosure

Schedule of Debt

Years Ending December 31,			Total
2013 (remainder)			$	83,850
2014		(b)		672,288
2015				230,869
2016				87,902
2017				126,980
Thereafter through 2026				805,720
				2,007,609
Unamortized discount				(14,274)
	Total		$	1,993,335

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Stock-Based Compensation and Equity (Tables)

3 Months Ended

Mar. 31, 2013

Stock-Based Compensation and Equity

Restricted Stock, RSU and PSU Rollforward

		Restricted Stock and RSU Awards			PSU Awards
			Weighted Average			Weighted Average
			Grant Date			Grant Date
		Shares	Fair Value		Shares	Fair Value
Nonvested at January 1, 2013		594,194	$	37.15	999,513	$	34.55
Granted	(a)	166,554		56.67	85,900		84.38
Vested	(b)	(233,098)		37.18	(323,872)		39.46
Forfeited		(12,501)		38.49	(25,000)		50.71
Adjustment	(c)	-		-	317,931		52.64
Nonvested at March 31, 2013	(d)	515,149	$	44.51	1,054,472	$	54.89

Earnings Per Share Reconciliation Table

	Three Months Ended March 31,
	2013		2012
Net income attributable to W. P. Carey	$	14,181	$	12,290
Allocation of distribution equivalents paid on unvested RSUs in excess of net income		(105)		(191)
Net income – basic		14,076		12,099
Income effect of dilutive securities, net of taxes		(27)		(24)
Net income – diluted	$	14,049	$	12,075
Weighted average shares outstanding – basic		68,967,209		40,037,496
Effect of dilutive securities		1,008,084		450,156
Weighted average shares outstanding – diluted		69,975,293		40,487,652

Redeemable Noncontrolling Interest

Reclassification out of Accumulated Other Comprehensive Income

	Three Months Ended March 31, 2013
	Gains and Losses on Derivative Instruments		Foreign Currency Translation Adjustments		Unrealized Gains and Losses on Marketable Securities		Total
Balance - beginning of period	$	(7,508)	$	2,828	$	31	$	(4,649)
Other comprehensive income before reclassifications		2,685		(7,940)		-		(5,255)
Amounts reclassified from accumulated other comprehensive income:
Interest expense		434		-		-		434
Other income and (expense)		(47)		-		-		(47)
Net income from equity investments in real estate and the Managed REITs		103		-		-		103
Total		490		-		-		490
Net current period other comprehensive income (loss)		3,175		(7,940)		-		(4,765)
Balance - end of period	$	(4,333)	$	(5,112)	$	31	$	(9,414)

	Three Months Ended March 31, 2012
	Gains and Losses on Derivative Instruments		Foreign Currency Translation Adjustments		Unrealized Gains and Losses on Marketable Securities		Total
Balance - beginning of period	$	(5,246)	$	(3,299)	$	38	$	(8,507)
Other comprehensive income before reclassifications		(54)		2,178		(3)		2,121
Amounts reclassified from accumulated other comprehensive income:
Interest expense		335		-		-		335
Net income from equity investments in real estate and the Managed REITs		75		-		-		75
Total		410		-		-		410
Net current period other comprehensive income (loss)		356		2,178		(3)		2,531
Balance - end of period	$	(4,890)	$	(1,121)	$	35	$	(5,976)

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Consolidated Statements of Cash Flows (USD $)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Cash Flows - Operating Activities
Net income	$ 15,839,000	$ 11,669,000
Adjustments to net income:
Depreciation and amortization including intangible assets and deferred financing costs	33,803,000	7,881,000
(Income) loss from equity investments in real estate and the Managed REITs in excess of distributions received	(991,000)	(1,716,000)
Straight-line rent, financing lease adjustments and amortization of rent-related intangibles	4,459,000	(1,135,000)
Amortization of dererred revenue	(2,359,000)	(2,359,000)
Loss on sale of real estate	931,000	181,000
Unrealized gain on foreign currency transactions and others	(1,002,000)	(212,000)
Realized loss (gain) on foreign currency transactions and others	100,000	(75,000)
Management income received in shares of Managed REITs	(9,942,000)	(6,889,000)
Impairment charges	3,279,000	5,724,000
Stock-based compensation expense	9,149,000	5,261,000
Deferred acquisition revenue received	8,561,000	8,722,000
Increase in structuring revenue receivable	(1,437,000)	(3,916,000)
(Decrease) increase in income taxes, net	(4,144,000)	1,317,000
Increase in prepaid taxes	(15,721,000)	(6,980,000)
Net changes in other operating assets and liabilities	(23,050,000)	(21,533,000)
Net cash provided by (used in) operating activities	17,475,000	(4,060,000)
Cash Flows - Investing Activities
Distributions received from equity investments in real estate and the Managed REITs in excess of equity income	11,955,000	7,370,000
Capital contributions to equity investments	(1,418,000)	(90,000)
Purchases of real estate	(71,131,000)
Capital expenditures	(1,826,000)	(1,481,000)
Proceeds from sale of real estate	11,065,000	2,422,000
Other investing activities, net	0	11,000
Funds placed in escrow	(27,128,000)	(722,000)
Funds released from escrow	50,749,000	1,954,000
Net cash (used in) provided by investing activities	(27,734,000)	9,464,000
Cash Flows - Financing Activities
Distributions paid	(45,746,000)	(22,792,000)
Contributions from noncontrolling interests	2,463,000	750,000
Distributions paid to noncontrolling interests	(9,232,000)	(992,000)
Scheduled payments of mortgage principal	(102,612,000)	(2,357,000)
Proceeds from mortgage financing	99,000,000
Proceeds from senior credit facility	55,000,000	15,000,000
Repayments of senior credit facility	(10,000,000)
Payment of financing costs and mortgage deposits, net of deposits refunded	(570,000)	(75,000)
Funds placed in escrow	43,000
Proceeds from exercise of stock options	25,000	4,249,000
Payment of tax withholding liability related to stock-based compensation awards		2,553,000
Windfall tax benefit associated with stock-based compensation awards	10,764,000	4,597,000
Net cash provided by (used in) financing activities	(865,000)	(4,173,000)
Change in Cash and Cash Equivalents During the Period
Effect of exchange rate changes on cash	(1,216,000)	185,000
Net (decrease) increase in cash and cash equivalents	(12,340,000)	1,416,000
Cash and cash equivalents, beginning of period	123,904,000	29,297,000
Cash and cash equivalents, end of period	111,564,000	30,713,000
Supplemental noncash investing and financing activities
Reclassifcation To (From) Net Direct Financing Lease	5,600,000
Dividends Payable Current And Noncurrent	$ 57,128,000

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Discountinued Operation (Tables)

3 Months Ended

Mar. 31, 2013

Discontinued Operations

Schedule Of Disposal Groups Including Discontinued Operations Income Statement Balance Sheet And Additional Disclosures

		Three Months Ended March 31,
		2013		2012
Revenues		$	168	$	1,820
Expenses			(316)		(1,700)
Gain on extinguishment of debt			70		-
Loss on sale of real estate			(931)		(181)
Impairment charges			-		(5,724)
	Loss from discontinued operations	$	(1,009)	$	(5,785)

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Agreements and Transactions of Related Parties (Details 4) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013
Redeemable Securities
Balance - beginning balance	$ 40,000
Reclassification to a liability upon receipt of notice	40,000
Balance - end of period	$ 0

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Intangible Assets and Liabilities and Goodwil (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended			3 Months Ended
	Mar. 31, 2013	Mar. 31, 2013 Investment Management	Dec. 31, 2012 Investment Management	Mar. 31, 2013 Real Estate Ownership
Goodwill Rollforward
Balance - beginning of period	$ 329,132	$ 63,607	$ 63,607	$ 265,525
Allocation of goodwill dispositions of properties within the reporting unit	(658)			658
Balance - end of period	$ 328,474	$ 63,607	$ 63,607	$ 264,867

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Stock-Based Compensation and Equity (Details 2) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Earnings Per Share
Net income attributable to W. P. Carey	$ 14,181	$ 12,290
Allocation of earnings to participating unvested RSUs	(105)	(191)
Net Income - basic	14,076	12,099
Income effect of dilutive securities, net of taxes	(27)	(24)
Net Income - diluted	$ 14,049	$ 12,075
Weighted average shares outstanding-basic	68,967,209	40,037,496
Effect of dilutive securities	1,008,084	450,156
Weighted average shares outstanding-diluted	69,975,293	40,487,652

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Investments in real estate:
Real estate, at cost (inclusive of amounts attributable to consolidated variable interest entities (''VIEs'') of $78,745 and $$78,745 , respectively)	$ 2,373,912	$ 2,334,488
Operating real estate, at cost	98,690	99,703
Accumulated depreciation (inclusive of amounts attributable to consolidated VIEs of $16,648 and $16,110, respectively)	(150,207)	(136,068)
Net investments in properties	2,322,395	2,298,123
Net investments in direct financing leases (inclusive of amounts attributable to consolidated VIEs of $23,900 and $23,921, respectively)	364,078	376,005
Assets held for sale	1,505	1,445
Equity investments in real estate and the Managed REITs	564,092	565,626
Net investments in real estate	3,252,070	3,241,199
Cash (inclusive of amounts attributable to consolidated VIEs of $10 and $17, respectively)	111,564	123,904
Due from affiliates	34,625	36,002
Goodwill	328,474	329,132
In-place lease, net (inclusive of amounts attributable to consolidated VIEs of $3,707 and $3,823, respectively)	468,132	447,278
Above-market rent, net (inclusive of amounts attributable to consolidated VIEs of $2,716 and $2,773, respectively)	267,845	279,885
Other intangible assets, net (inclusive of amounts attributable to consolidated VIEs of $287 and $297, respectively)	10,484	10,200
Other assets, net (inclusive of amounts attributable to consolidated VIEs of $4,733 and $4,232, respectively)	136,420	141,442
Total assets	4,609,614	4,609,042
Liabilities:
Non-recourse debt (inclusive of amounts attributable to consolidated VIEs of $30,040 and $30,326, respectively)	1,695,335	1,715,397
Senior credit facility	298,000	253,000
Accounts payable, accrued expenses and other liabilities (inclusive of amounts attributable to consolidated VIEs of $7,656 and $7,659, respectively)	317,520	265,132
Income taxes, net	20,847	24,959
Distributions payable	57,128	45,700
Total liabilities	2,388,830	2,304,188
Redeemable noncontrolling interest	7,404	7,531
Redeemable securities - related party (Note 3)	0	40,000
Commitments and contingencies (Note 11)
W. P. Carey stockholders' equity:
Common stock, $0.001 per value, 450,000,000 shares authorized; 69,178,667 and 68,901,933 shares issued and outstanding, respectively	69	69
Preferred stock, $0.001 per value, 50,000,000 shares authorized; none issued	0	0
Additional paid-in capital	2,184,387	2,175,820
Distributions in excess of accumulated earnings	(218,191)	(172,182)
Deferred compensation obligation	13,411	8,358
Accumulated other comprehensive loss	(9,414)	(4,649)
Less, treasury stock at cost, 416,408 and 416,408 shares, respectively	(20,270)	(20,270)
Total W. P. Carey stockholders' equity	1,949,992	1,987,146
Noncontrolling interest	263,388	270,177
Total equity	2,213,380	2,257,323
Total liabilities and equity	$ 4,609,614	$ 4,609,042

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Equity Investment in Real Estate and the Managed REITs (Narratives) (Details) (USD $)	3 Months Ended		1 Months Ended	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Jan. 31, 2013 Wanbishi Archives Co. Ltd.	Mar. 31, 2013 Managed REITs	Mar. 31, 2012 Managed REITs	Mar. 31, 2013 Managed REITs CPA: 16 - Global	Mar. 31, 2012 Managed REITs CPA: 16 - Global	Mar. 31, 2013 Managed REITs CPA:16 - Global operating partnership	Mar. 31, 2012 Managed REITs CPA:16 - Global operating partnership	Mar. 31, 2013 Managed REITs CPA: 17 - Global	Mar. 31, 2012 Managed REITs CPA: 17 - Global	Mar. 31, 2013 Managed REITs CPA:17 - Global operating partnership	Mar. 31, 2012 Managed REITs CPA:17 - Global operating partnership	Mar. 31, 2013 Managed REITs CWI	Mar. 31, 2013 Real Estate
Investmens in REITs
Asset management fees receivable, shares						171,808				175,316				15,236
Distributions received from equity investment	$ (991,000)	$ (1,716,000)				$ 6,200,000	$ 6,000,000	$ 3,600,000	$ 4,300,000	$ 600,000	$ 300,000	$ 4,300,000	$ 2,700,000
Gain on sale of investment properties				2,700,000	(2,100,000)
Other-than-temporary impairment charges	2,684,000	298,000		9,300,000	1,200,000			2,700,000	300,000
Income from equity method investments	10,656,000	13,986,000		1,700,000	100,000
Mortgage Debt On Tenancy In common															241,600,000
Pro Rata Share Mortgage Debt On Tenancy In Common															113,600,000
Purchase price adjustment			$ 1,300,000

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Consolidated Statement of Equity (USD $) In Thousands, except Share data, unless otherwise specified	Total USD ($)	No Par Value Common Stock	$0.001 Par Value Common Stock USD ($)	Additional Paid-in Capital USD ($)	Distributions in Excess of Accumulated Earnings USD ($)	Deferred Compensation Obligation USD ($)	Accumulated Other Comprehensive Loss USD ($)	Treasury Stock USD ($)	Total W.P. Carey Members USD ($)	Noncontrolling Interest USD ($)
Balance - beginning of period at Dec. 31, 2011	$ 716,402		$ 0	$ 779,071	$ (95,046)	$ 7,063	$ (8,507)	$ 0	$ 682,581	$ 33,821
Beginning equity balance - shares at Dec. 31, 2011		39,729,018	0
W.P. Carey Stockholders
Exchange of shares of W. P. Carey & Co. LLC shares for shares of W.P.Carey Inc. in connection with the Merger,value	1,380,361		40	(40)
Exchange of shares of W. P. Carey & Co. LLC shares for shares of W.P.Carey Inc. in connection with the Merger, shares		(39,834,827)	39,834,827
Shares issued to stockholders of CPA:15 in connection with the Merger, value	237,359		28	1,380,333					1,380,361	237,513
Shares issued to stockholders of CPA:15 in connection with the Merger, shares			28,170,643
Purchase of noncontrilling interests in connection with merger				(154)					(154)
Reclassification of Estate Shareholder shares	(40,000)			(40,000)					(40,000)
Exercise of stock options and employee purchase under the employee share purchase plan, value	1,553			1,553					1,553
Exercise of stock options and employee purchase under the employee share purchase plan, shares		30,993	13,768
Cash proceeds from the issuance of shares to third party, net, value	45,000		1	44,999					45,000
Cash proceeds from the issuance of shares to third party, net, shares			937,500
Grants issued in connection with services rendered - shares		427,425
Shares issued under share incentive plans - value	646			646					646
Shares issued under share incentive plans - shares		238,728
Contributions from noncontrolling interests	3,291									3,291
Forfeitures of shares - shares		(29,919)
Windfall tax benefit - share incentive plan	10,185			10,185					10,185
Stock-based compensation expense	26,038			25,067		971			26,038
Redemption value adjustment	(840)			(840)					(840)
Distributions to noncontrolling interests	(6,649)									(6,649)
Distributions declared	(138,944)				(139,268)	324			(138,944)
Purchase of treasury stock from related parties (Note 3), value	(45,270)							(45,270)	(45,270)
Purchase of treasury stock from related parties (Note 3), shares		(561,418)	(416,408)
Cancellation of shares, value				(25,000)				25,000
Cancellation of shares, shares			(85,671)
Net income	62,739				62,132				62,132	607
Other comprehensive loss
Foreign currency translation adjustments	7,721						6,127		6,127	1,594
Unrealized (loss)/gain on derivative instruments	(2,262)						(2,262)		(2,262)
Change in unrealized apprection on marketable securities	(7)						(7)		(7)
Balance - end of period at Dec. 31, 2012	2,257,323		69	2,175,820	(172,182)	8,358	(4,649)	(20,270)	1,987,146	270,177
Ending equity balance - shares at Dec. 31, 2012		0	68,485,525
W.P. Carey Stockholders
Shares issued under share incentive plans - value	(6,855)			(6,855)					(6,855)
Shares issued under share incentive plans - shares			275,956
Cash proceeds from the excerise of stock options, value	25			25					25
Cash proceeds from the excerise of stock options, shares			778
Contributions from noncontrolling interests	2,463									2,463
Windfall tax benefit - share incentive plan	10,764			10,764					10,764
Stock-based compensation expense	9,149			4,633		4,516			9,149
Redemption value adjustment	0
Distributions to noncontrolling interests	(9,181)									(9,181)
Distributions declared	(59,653)				(60,190)	537			(59,653)
Foreign currency translation	10									10
Net income					14,181				14,181	1,708
Other comprehensive loss
Foreign currency translation adjustments	(9,729)						(7,940)		(7,940)	(1,789)
Unrealized (loss)/gain on derivative instruments	3,175						3,175		3,175
Balance - end of period at Mar. 31, 2013	$ 2,213,380		$ 69	$ 2,184,387	$ (218,191)	$ 13,411	$ (9,414)	$ (20,270)	$ 1,949,992	$ 263,388
Ending equity balance - shares at Mar. 31, 2013			68,762,259

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Risk Management and Use of Derivative Financial Instruments (Narratives) (Details)	3 Months Ended			3 Months Ended		3 Months Ended
	Mar. 31, 2013 USD ($) property	Mar. 31, 2012 USD ($)	Dec. 31, 2012 USD ($)	Mar. 31, 2013 Interest Expense USD ($)	Mar. 31, 2013 Cash Flow Hedging USD ($)	Mar. 31, 2013 Interest rate cap USD ($)	Mar. 31, 2012 Interest rate cap USD ($)	Mar. 31, 2013 Interest rate cap Unconsolidated Member USD ($)	Mar. 31, 2012 Interest rate cap Unconsolidated Member USD ($)	Mar. 31, 2013 Interest rate cap 1-Month LIBOR Derivatives Not in Cash Flow Hedging Relationships	Mar. 31, 2013 Interest rate cap 3-Month LIBOR Derivatives Not in Cash Flow Hedging Relationships	Mar. 31, 2013 Forward contracts USD ($)	Mar. 31, 2013 Forward contracts EUR (€)	Mar. 31, 2013 Forward contracts Derivatives Not in Cash Flow Hedging Relationships Noncontrolling Interest USD ($)	Mar. 31, 2013 CPA: 16 - Global USD ($) property	Mar. 31, 2013 CPA: 16 - Global Hotel property	Sep. 28, 2012 CPA 15 property
Summary of Derivative Instruments
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	$ (387,000)	$ (335,000)						$ 100,000	$ 100,000
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net	3,073,000	291,000				(3,000)	0	100,000	100,000
Notional Amount													47,669,000	33,500,000
Fair Value	262,000				(5,025,000)	0						(68,000)		3,600,000
Debt instrument interest rate at end of period										4.20%	2.80%
Maximum credit exposure	300,000
Derivative Fair Value, Gross Liability	20,700,000
Aggregate termination value of derivatives in liability position	21,800,000
Derivative instruments gain loss reclassification from OCI to income, to be transferred				2,100,000
Concentration Risk Percentage	10.00%
Percentage Geography															18.50%
Assets	$ 4,609,614,000		$ 4,609,042,000												$ 3,300,000,000
Number of real estate properties	422														494	2	305

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Basis of Presentation (Narratives) (Details) (CPA 18 - Global, USD $)	3 Months Ended
	Mar. 31, 2013
CPA 18 - Global
Related Party Transaction [Line Items]
Maximum Offering Amount	$ 1,000,000,000
Amount From Dividend Reinvestment Plan	$ 400,000,000

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Risk Management and Use of Derivative Financial Instruments (Details 6) (Interest rate swap, Derivatives Not in Cash Flow Hedging Relationships) In Thousands, unless otherwise specified		3 Months Ended
	Mar. 31, 2013 USD ($)	Mar. 31, 2013 3-Month Euribor USD ($)	Mar. 31, 2013 3-Month Euribor EUR (€)	Mar. 31, 2013 3-Month Euribor April 1 USD ($)	Mar. 31, 2013 3-Month Euribor April 1 EUR (€)	Mar. 31, 2013 3-Month Euribor April 2 USD ($)	Mar. 31, 2013 3-Month Euribor April 2 EUR (€)	Mar. 31, 2013 3-Montth Euribor April 3 USD ($)	Mar. 31, 2013 3-Montth Euribor April 3 EUR (€)
Derivative Disclosure
Notional Amount			€ 100,000		€ 15,970		€ 6,388		€ 5,450
Effective Interest Rate		3.70%	3.70%	0.90%	0.90%	4.40%	4.40%	4.30%	4.30%
Effective Date		Jul. 31, 2006	Jul. 31, 2006	Apr. 30, 2012	Apr. 30, 2012	Apr. 30, 2008	Apr. 30, 2008	Apr. 30, 2007	Apr. 30, 2007
Expiration Date		Jul. 31, 2016	Jul. 31, 2016	Jul. 31, 2013	Jul. 31, 2013	Oct. 31, 2015	Oct. 31, 2015	Jul. 31, 2016	Jul. 31, 2016
Fair Value	$ (14,556)	$ (13,273)		$ (44)		$ (416)		$ (823)

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Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2013

Accounting Policies

Consolidation, Policy

The consolidated financial statements reflect all of our accounts, including those of our majority-owned and/or controlled subsidiaries and our tenancy-in-common interests as described below. The portion of equity in a consolidated subsidiary that is not attributable, directly or indirectly, to us is presented as noncontrolling interests. All significant intercompany accounts and transactions have been eliminated.

We have investments in tenancy-in-common interests in various domestic and international properties. Consolidation of these investments is not required as such interests do not qualify as VIEs and do not meet the control requirement required for consolidation. Accordingly, we account for these investments using the equity method of accounting. We use the equity method of accounting because the shared decision-making involved in a tenancy-in-common interest investment provides us with significant influence on the operating and financial decisions of these investments.

Earnings Per Share, Policy

Under current authoritative guidance for determining earnings per share, all unvested share-based payment awards that contain non-forfeitable rights to distributions are considered to be participating securities and therefore are included in the computation of earnings per share under the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common shares and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Our unvested RSUs contain rights to receive non-forfeitable distribution equivalents, and therefore we apply the two-class method of computing earnings per share. The calculation of earnings per share below excludes the income attributable to the unvested RSUs from the numerator.

Future Accounting Requirements, Policy

NewAccounting Requirements

The following Accounting Standards Updates (“ASUs”) promulgated by Financial Accounting Standards Board (“FASB”) are applicable to us as indicated:

ASU 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities — In January 2013, the FASB issued an update to ASU 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. ASU 2013-01 clarifies that the scope of ASU 2011-11 applies to derivatives accounted for in accordance with Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with Section 210-20-45 or Section 815-10-45 of Topic 815 or subject to an enforceable master netting or similar arrangement. These amendments did not have a significant impact on our financial position or results of operations and are applicable to us for our interim and annual reports beginning in 2013 and shall be applied retrospectively.

ASU 2013-02, Other Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income — In February 2013, the FASB issued ASU 2013-02 requiring entities to disclose additional information about items reclassified out of accumulated other comprehensive income. This ASU impacts the form of our disclosures only, and is applicable to us for our interim and annual reports beginning in 2013 and shall be applied retrospectively. The related additional disclosures are located in Note 12.

ASU 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date, a consensus of the FASB Emerging Issues Task Force — In February 2013, the FASB issued ASU 2013-04, which requires entities to measure obligations resulting from joint and several liability arrangements (in our case, tenancy-in-common arrangements, Note 6) for which the total amount of the obligation is fixed as the sum of the amount the entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. This ASU is applicable to us for our interim and annual reports beginning in 2014 and shall be applied retrospectively; however, we elected to adopt this ASU early in 2013 and it did not have a significant impact on our financial position or results of operations for any of the periods presented.

ASU 2013-05, Foreign Currency Matters (Topic 830): Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity — In March 2013, the FASB issued ASU 2013-05, which indicates that a cumulative translation adjustment (“CTA”) is attached to the parent's investment in a foreign entity and should be released in a manner consistent with the derecognition guidance on investments in entities. Therefore, the entire amount of the CTA associated with the foreign entity would be released into earnings when there has been a sale of a foreign subsidiary or group of assets within a foreign subsidiary, a loss of a controlling financial interest upon deconsolidation of an investment in a foreign entity or a step acquisition in a foreign entity. This ASU will be applicable to us for derecognition transactions after December 31, 2013.

Finance, Loans and Leases Receivable, Policy

Assets representing rights to receive money on demand or at fixed or determinable dates are referred to as finance receivables. Our finance receivable portfolios consist of our Net investments in direct financing leases and deferred acquisition fees. Operating leases are not included in finance receivables as such amounts are not recognized as an asset in the consolidated balance sheets.

Fair Value of Financial Instruments, Policy

For fair value measurements, the fair value of an asset is defined as the exit price, which is the amount that would either be received when an asset is sold or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance establishes a three-tier fair value hierarchy based on the inputs used in measuring fair value. These tiers are: Level 1, for which quoted market prices for identical instruments are available in active markets, such as money market funds, equity securities and U.S. Treasury securities; Level 2, for which there are inputs other than quoted prices included within Level 1 that are observable for the instrument, such as certain derivative instruments including interest rate caps and swaps; and Level 3, for securities that do not fall into Level 1 or Level 2 and for which little or no market data exists, therefore requiring us to develop our own assumptions.

Shares Subject to Mandatory Redemption, Changes in Redemption Value, Policy

We account for a former employee's noncontrolling interest in WPCIas a redeemable noncontrolling interest, as we have an obligation to repurchase the interest from that individual, subject to certain conditions. Theindividual's interest is reflected at estimated redemption value for all periods presented.

Discontinued Operations, Policy

From time to time, we may dispose of a propertywhen it is vacant as a result of tenants vacating space, tenants electing not to renew their leases, tenant insolvency, or lease rejection in the bankruptcy process. In such cases, we assess whether we can obtain the highest value from the property by selling it, as opposed to re-leasing it. When it is appropriate to do so, upon the evaluation of the disposition of long-lived assets, we classify the property as an asset held for sale on our consolidated balance sheet and the current and prior period results of operations of the property are reclassified as discontinued operations.

Discussion of Credit Risk Derivative Risk Management Policy

We measure derivative instruments at fair value and record them as assets or liabilities, depending on our rights or obligations under the applicable derivative contract. Derivatives that are not designated as hedges must be adjusted to fair value through earnings. For a derivative designated and qualified as a cash flow hedge, the effective portion of the change in fair value of the derivative is recognized in Other comprehensive income until the hedged item is recognized in earnings. The ineffective portion of a derivative’s change in fair value is immediately recognized in earnings.

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Agreements and Transactions of Related Parties (Narratives) (Details) (USD $) In Millions, except Share data, unless otherwise specified	0 Months Ended		3 Months Ended	12 Months Ended		3 Months Ended		0 Months Ended	3 Months Ended		12 Months Ended	3 Months Ended
	Apr. 04, 2013	Sep. 28, 2012	Mar. 31, 2013 property sqft	Dec. 31, 2012	Mar. 31, 2012 tenant	Mar. 31, 2013 Maximum	Mar. 31, 2013 Minimum	Sep. 28, 2012 CPA 15 tenant property sqft	Mar. 31, 2013 CPA 15	Mar. 31, 2013 CPA: 16 - Global property	Dec. 31, 2012 CPA: 16 - Global	Mar. 31, 2013 CPA: 17 - Global	Mar. 31, 2013 CPA: 17 - Global Maximum	Mar. 31, 2013 CPA: 17 - Global Minimum	Mar. 31, 2013 CWI	Jan. 31, 2013 CWI
Asset management fees
Asset management revenue is calculated as a percent of total average invested assets									1.00%	0.50%		0.50%
Performance revenue is calculated as a percent of total average invested assets									0.50%
Asset management revenue is calculated as a percent of average equity value of securities												1.75%
Asset management revenue is calculated as a percent of average lodging-related assets															0.50%
Other distributions of cash received			10.00%
Asset management revenue receivable in shares, percent											50.00%
Asset management revenue receivable in cash, percent											50.00%
Structuring revenue
Acquisition revenue as a percent of total cost of all investments made by each CPA REIT			4.50%
Percent of structuring revenue paid on completion of transaction			2.50%
Percent of structuring revenue paid in annual installments			2.00%
Initial acquisition revenue percentage													1.75%	0.00%	2.50%
Maximum percentage of revenue earned on initial acquisition			6.00%
Unpaid transaction fee interest rate						7.00%	5.00%
Loan Refinanced Fee Rate			1.00%
Reimbursed costs from affiliates and wholesaling revenue
Selling commission per share sold												$ 0.65			$ 0.70
Dealer revenue per share sold												$ 0.35			$ 0.30
Maximum percent of offering proceeds															2.00%
Organization and offering costs incurred															$ 7.9
Offering Costs Obligation To Reimburse															4.6
Offering Costs Reimbursed															3.5
Other transactions with affiliates
Joint venture ownership percentage						95.00%	3.00%
Loans approved by directors																50.0
Purchase of common stock	$ 40.0	$ 85.0		$ 45.0
Common stock market value on excerise date	$ 64.83
Stock repurchased during period, shares	616,971
Merger with CPA 15
Number of real estate properties			422					305		494
Number of tenants					124			76
Square footage of all real estate properties			39,000,000					27,000,000
Occupancy rate			98.80%					99.00%

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Net Investments in Properties (Tables)

3 Months Ended

Mar. 31, 2013

Net Investments in Properties

Net Investments in Real Estate Properties

	March 31, 2013		December 31, 2012
Land	$	521,032	$	509,530
Buildings		1,852,880		1,824,958
Less: Accumulated depreciation		(129,580)		(116,075)
	$	2,244,332	$	2,218,413

Net Investments in Operating Real Estate Properties

	March 31, 2013		December 31, 2012
Land	$	21,962	$	22,158
Buildings		76,728		77,545
Less: Accumulated depreciation		(20,627)		(19,993)
	$	78,063	$	79,710

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Debt (Narratives) (Details) (USD $)	3 Months Ended							3 Months Ended
	Mar. 31, 2013	Mar. 31, 2013 Fixed Interest Rate Loans	Mar. 31, 2013 Variable Interest Rate Loans	Mar. 31, 2013 Domestic	Mar. 31, 2013 Revolving Credit Facility	Feb. 29, 2012 Revolving Credit Facility	Mar. 31, 2013 Term Loan Facility	Mar. 31, 2013 Senior Credit Facility
Revolving Line Of Credit
Senior credit facility					$ 450,000,000	$ 450,000,000	$ 175,000,000	$ 625,000,000
Credit facility, expiration date								Dec. 31, 2014
Credit facility, interest rate at end of period
Letters of credit outstanding amount								5,400,000
Credit facililty potential increase								125,000,000
Debt instrument, covenant compliance								We were in compliance with all of these covenants at March 31, 2013.
Line of credit facility, available								625,000,000
AmountOutstanding							175,000,000	298,000,000
Non Recourse Debt
Amount of debt acquired				36,500,000
Collateral mortgage loan, carrying value	2,000,000,000
Mortgage loan on real estate, minimum interest rate		2.70%	1.20%
Mortgage loan on real estate, maximum interest rate		10.00%	8.50%
Debt instrument maturity date, range start	Jan. 01, 2013
Debt instrument maturity date, range end	Dec. 31, 2026
Mortgage loans on real estate, interest rate	5.00%			4.05%
Debt refinanced	41,500,000
Debt refinanced, restated carrying value	$ 62,500,000
Mortgage loan term	10			10

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Consolidated Statement of Equity (Parentheticals) (USD $)	3 Months Ended		12 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
Statement of Stockholders' Equity
Per shares distributions declared	$ 0.820	$ 0.565	$ 2.44

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Consolidated Balance Sheets (Parentheticals) (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Investments in real estate:
Real estates, at cost attributable to consolidated VIEs	$ 2,373,912	$ 2,334,488
Operating real estate, at cost	98,690	99,703
Accumulated depreciation attributable to consolidated VIEs	150,207	136,068
Net investments in direct financing leases attributable to VIE's	364,078	376,005
Cash attributable to consolidated VIEs	111,564	123,904
In-place lease attributable to consolidated VIEs	468,132	447,278
Above-market rent attributable to consolidated VIEs	267,845	279,885
Other intangible assets attributable to consolidated VIEs	10,484	10,200
Other assets, net attributable to consolidated VIEs	136,420	141,442
Liabilities:
Non-recourse debt attributable to consolidated VIEs	1,695,335	1,715,397
Accounts payable, accrued expenses, and other liabilities attributable to consolidated VIEs	317,520	265,132
W. P. Carey stockholders' equity:
Preferred stock, per share value	$ 0.001	$ 0.001
Preferred stock, authorized	50,000,000	50,000,000
Treasury stock, cost	416,408	416,408
Variable Interest Entity
Investments in real estate:
Real estates, at cost attributable to consolidated VIEs	78,745	78,745
Accumulated depreciation attributable to consolidated VIEs	16,648	16,110
Net investments in direct financing leases attributable to VIE's	23,900	23,921
Cash attributable to consolidated VIEs	10	17
In-place lease attributable to consolidated VIEs	3,707	3,823
Above-market rent attributable to consolidated VIEs	2,716	2,773
Other intangible assets attributable to consolidated VIEs	287	297
Other assets, net attributable to consolidated VIEs	4,733	4,232
Liabilities:
Non-recourse debt attributable to consolidated VIEs	30,040	30,326
Accounts payable, accrued expenses, and other liabilities attributable to consolidated VIEs	$ 7,656	$ 7,659
Common Stock
W. P. Carey stockholders' equity:
Common stock, per share value	$ 0.001	$ 0.001
Common stock, authorized	450,000,000	450,000,000
Common stock, issued	69,178,667	68,901,933
Common stock, outstanding	69,178,667	68,901,933

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Debt

3 Months Ended

Mar. 31, 2013

Debt Disclosure

Debt

Note 10. Debt

Senior Credit Facility

In February 2012, we amended and restated our existing credit agreement (the “Amended and Restated Credit Agreement”) to increase the maximum aggregate principal amount from $450.0 million to $625.0 million, which iscomprised of a $450.0 million unsecured revolving credit facility (the “Revolver”) and a $175.0 million term loan facility (the “Term Loan Facility” and, together with the Revolver, the “Senior Credit Facility”). The Senior Credit Facility matures in December 2014, but may be extended by one year at our option, subject to the conditions provided in the Amended and Restated Credit Agreement. At our election, the principal amount available under the Senior Credit Facility may be increased by up to an additional $125.0 million, subject to the conditions provided in the Amended and Restated Credit Agreement.

Availability under the Senior Credit Facility is dependent upon a number of factors, including the Unencumbered Property NOI, the Unencumbered Management EBITDA and the Total Unsecured Outstanding Indebtedness (each as defined in the Amended and Restated Credit Agreement). At March 31, 2013, availability under the Senior Credit Facility was $625.0 million, of which we had drawn $298.0 million, including $175.0 million under the Term Loan. At March 31, 2013, we paid interest on the Senior Credit Facility at an annual interest rate consisting of LIBOR plus 1.75%. In addition, as of March 31, 2013, our lenders had issued letters of credit totaling $5.4 million on our behalf in connection with certain contractual obligations, which reduce amounts that may be drawn under the Revolver. The Revolver is currently expected to be utilized primarily for potential new investments, repayment of existing debt and general corporate purposes.

The Amended and Restated Credit Agreement stipulates several financial covenants that require us to maintain certain ratios and benchmarks at the end of each quarter as defined in the Amended and Restated Credit Agreement. We were in compliance with all of these covenants atMarch 31, 2013.

Non-Recourse Debt

Non-recourse debt consists of mortgage notes payable, which are collateralized by the assignment of real property, and direct financing leases, with an aggregate carrying value of approximately $2.0billion at March 31, 2013. Our mortgage notes payable had fixed annual interest rates ranging from 2.7% to 10.0% and variable effective annual interest rates ranging from 1.2% to 8.5% with maturity dates ranging from 2013 to 2026 at March 31, 2013.

During the three months ended March 31, 2013,in connection with our real estate acquisition (Note 4), we obtained a non-recourse mortgage loan of $36.5 million with an annual interest rate of 4.05% and term of 10 years.

During the three months ended March 31, 2013, we refinanced two maturing non-recourse mortgage loans totaling $41.5 million with new financing totaling $62.5 million. These new mortgage loans have a weighted-average annual interest rate and term of 5.0% and 10 years, respectively.

Scheduled Debt Principal Payments

Scheduled debt principal payments during the remainder of 2013, for each of the next four calendar years following December 31, 2013, and thereafter are as follows (in thousands):

Years Ending December 31,		Total (a)
2013 (remainder)		$	83,850
2014 (b)			672,288
2015			230,869
2016			87,902
2017			126,980
Thereafter through 2026			805,720
			2,007,609
Unamortized discount			(14,274)
	Total	$	1,993,335

__________

• Certain amounts are based on the applicable foreign currency exchange rate at March 31, 2013.
• Includes $123.0 million outstanding under our Revolver and $175.0 million outstanding under our Term Loan Facility at March 31, 2013, each of which is scheduled to mature in 2014 unless extended pursuant to its terms.

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Document and Entity Information	3 Months Ended
	Mar. 31, 2013	Apr. 26, 2013
Document and Entity Information [Abstract]
Entity Registrant Name	W. P. Carey Inc.
Entity Central Index Key	0001025378
Document Type	10-Q
Document Period End Date	Mar. 31, 2013
Amendment Flag	false
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		68,145,288

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2013

Commitments and Contingencies Disclosure

Commitments and Contingencies Disclosure

Note11.Commitments and Contingencies

At March 31, 2013, we were not involved in any material litigation.

Various claims and lawsuits arising in the normal course of business are pending against us. The results of these proceedings are not expected to have a material adverse effect on our consolidated financial position or results of operations.

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Consolidated Statements of Income (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Lease revenues:
Rental income	$ 65,785	$ 14,652
Interest income from direct financing leases	9,512	2,126
Total lease revenues	75,297	16,778
Asset management revenue from affiliates	10,015	15,602
Structuring revenue from affiliates	6,342	7,638
Dealer manager fees	1,223	3,787
Reimbursed costs from affiliates	11,968	18,737
Other real estate income	8,541	5,772
Revenues, Total	113,386	68,314
Operating Expenses
General and administrative	28,973	26,909
Reimbursable costs	11,968	18,737
Depreciation and amortization	30,876	6,463
Property expenses	5,152	2,072
Other real estate expenses	2,734	2,499
Impairment charges	3,279	0
Operating Expenses, Total	82,982	56,680
Other Income and Expenses
Other interest income	370	503
Net income from equity investments in real estate and Managed REITs	10,656	13,986
Other income and (expenses)	1,091	306
Interest expense	(26,906)	(7,280)
Other Income and Expenses, Total	(14,789)	7,515
Income from continuing operations before income taxes	15,615	19,149
Beneft from (provision for) income taxes	1,233	(1,695)
Income from continuing operations	16,848	17,454
Discontinued Operations
(Loss) income from operations of discontinued properties	(148)	120
Loss on sales of real estate	(931)	(181)
Gain on extinguishment of debt	70
Impairment charges	0	(5,724)
Loss from discontinued operations, net of tax	(1,009)	(5,785)
Net income	15,839	11,669
Net (income) loss attributable to non controlling interests	(1,708)	578
Add: Net loss attributable to redeemable noncontrolling interest	50	43
Net income attributable to W. P. Carey	14,181	12,290
Basic Earnings Per Share
Income from continuing operations attributable to W. P. Carey	$ 0.21	$ 0.44
Loss from discontinued operations attributable to W. P. Carey	$ (0.01)	$ (0.14)
Net income attributable to W. P. Carey	$ 0.20	$ 0.30
Diluted Earnings Per Share
Income from continuing operations attributable to W. P. Carey	$ 0.21	$ 0.44
Loss from discontinued operations attributable to W. P. Carey	$ (0.01)	$ (0.14)
Net income attributable to W. P. Carey	$ 0.20	$ 0.30
Weighted Average Shares Outstanding
Basic	68,967,209	40,037,496
Diluted	69,975,293	40,487,652
Amounts Attributable to W. P. Carey
Income from continuing operations, net of tax	15,190	18,075
Loss from discontinued operations, net of tax	(1,009)	(5,785)
Net income attributable to W. P. Carey	$ 14,181	$ 12,290
Distributions Declared Per Share	$ 0.820	$ 0.565

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Finance Receivables

3 Months Ended

Mar. 31, 2013

Finance Receivables

Finance Receivables

Note5. Finance Receivables

Assets representing rights to receive money on demand or at fixed or determinable dates are referred to as finance receivables. Our finance receivable portfolios consist of our Net investments in direct financing leases and deferred acquisition fees. Operating leases are not included in finance receivables as such amounts are not recognized as an asset in the consolidated balance sheets.

Deferred Acquisition Fees Receivable

As described in Note3, a portion of our structuring revenue is due in equal annual installments ranging from three to eight years, provided the CPA®REITs meet their respective performance criteria. Unpaid deferred installments, including accrued interest, from all of the CPA®REITs were included in Due from affiliates in the consolidated financial statements.

Credit Quality of Finance Receivables

We generally seek investments in facilities that we believe are critical to a tenant's business and that we believe have a low risk of tenant defaults. At bothMarch 31, 2013andDecember 31, 2012, none of our finance receivables were past due and we had not established any allowances for credit losses. There were no modifications of finance receivables for the three months ended March 31, 2013 or for the year ended December 31, 2012. We evaluate the credit quality of our tenant receivables utilizing an internal 5-point credit rating scale, with 1 representing the highest credit quality and 5 representing the lowest. The credit quality evaluation of our tenant receivables was last updated in the firstquarter of 2013. We believe the credit quality of our deferred acquisition fees receivable falls under category 1, as the CPA®REITs are expected to have the available cash to make such payments.

A summary of our finance receivablesby internal credit quality rating is as follows (dollars in thousands):

	Number of Tenants at		Net Investments in Direct Financing Leases at
Internal Credit Quality Indicator	March 31, 2013	December 31, 2012	March 31, 2013		December 31, 2012
1	3	3	$	46,386	$	46,398
2	3	4		28,192		49,764
3	8	8		269,573		257,281
4	3	4		19,927		22,562
5	-	-		-		-
			$	364,078	$	376,005

During the three months ended March 31, 2013, we reclassified $5.6 million of properties from Net investment in direct financing leases to Real estate (Note 4) in connection with the restructuring of two leases.

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Net Investments in Properties

3 Months Ended

Mar. 31, 2013

Net Investments in Properties

Net Investments in Properties

Note4.Net Investments in Properties

Real Estate

Real estate, which consists of land and buildings leased to others under operating leases and are carried at cost, is summarized as follows (in thousands):

	March 31, 2013		December 31, 2012
Land	$	521,032	$	509,530
Buildings		1,852,880		1,824,958
Less: Accumulated depreciation		(129,580)		(116,075)
	$	2,244,332	$	2,218,413

Real Estate Acquired —During the three months ended March 31, 2013, we entered into a domestic investment at a total cost of $72.4 million, including acquisition costs and net lease intangibles of $13.3 million (Note7). We funded the investment in part with the escrowed proceeds of $25.3 million from a sale of property in December 2012 in an exchange transaction under Section 1031 of the Internal Revenue Code of 1986, as amended (the “Code”), and non-recourse mortgage financing of $36.5 million.

Assets disposed of and reclassified as held-for-sale during the three months ended March 31, 2013 are discussed in Note 13. Impairment charges recognized on these properties are discussed in Note8. During this period, the U.S. dollar strengthened against the euro, as the end-of-period rate for the U.S. dollar in relation to the euro at March 31, 2013decreased by 3.0% to $1.2821 from $1.3218 at December 31, 2012. The impact of this strengthening was a $15.3 million decrease in Real estate from December 31, 2012 to March 31, 2013. In connection with restructuring two leases, we reclassified $5.6 million of properties from Net investment in direct financing leases to Real estate during the quarter ended March 31, 2013(Note5).

Operating Real Estate

Operating real estate, which consists of our investments in 21 self-storage properties through Carey Storage Management LLC (“Carey Storage”) and our Livho Inc. (“Livho”) hotel subsidiary, at cost, is summarized as follows (in thousands):

	March 31, 2013		December 31, 2012
Land	$	21,962	$	22,158
Buildings		76,728		77,545
Less: Accumulated depreciation		(20,627)		(19,993)
	$	78,063	$	79,710

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Agreements and Transactions with Related Parties (Tables)

3 Months Ended

Mar. 31, 2013

Agreements and Transactions with Related Parties

Schedule Of Related Party Transactions

	Three Months Ended March 31,
	2013		2012
Asset management revenue	$	10,015	$	15,602
Structuring revenue		6,342		7,638
Dealer manager fees		1,223		3,787
Reimbursed costs from affiliates		11,968		18,737
Distributions of Available Cash		7,891		6,974
Deferred revenue earned		2,123		2,123
	$	39,562	$	54,861

	Three Months Ended March 31,
	2013		2012
CPA®:15	$	-	$	7,368
CPA®:16 – Global		13,924		13,124
CPA®:17 – Global		14,756		32,983
CWI		10,860		1,146
Other		22		240
	$	39,562	$	54,861

Schedule of Balances Due to and From Related Party

	March 31, 2013		December 31, 2012
Deferred acquisition fees receivable	$	21,530	$	28,655
Reimbursable costs		5,640		1,457
Organization and offering costs		5,066		4,920
Accounts receivable		2,371		181
Asset management fee receivable		18		789
	$	34,625	$	36,002

	March 31, 2013		December 31, 2012
Due to the Estate	$	40,000	$	-
Due to other affiliates		673		673
	$	40,673	$	673

Reconciliation of Reedemable Securities

	Three Months Ended
	March 31, 2013
Balance - beginning of period	$	40,000
Reclassification to a liability upon receipt of notice		(40,000)

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Stock-Based Compensation and Equity

3 Months Ended

Mar. 31, 2013

Stock-Based Compensation and Equity

Stock-Based and Other Compensation

Note 12. Stock-Based Compensation and Equity

Stock-Based Compensation

We maintain several stock-based compensation plans, which are more fully described in the 2012 Annual Report. There have been no significant changes to the terms and conditions of any of our stock-based compensation plans or arrangements during 2013, other than as described below.

The total compensation expense (net of forfeitures) for our stock-based compensation plans was $9.1 million and $5.2 million for the three months ended March 31, 2013and 2012, respectively, which is included in General and administrative expenses in the consolidated financial statements.

Nonvested restricted stock,restricted stock units (“RSUs”) and performance stock units (“PSUs”) atMarch 31, 2013 and changes during the three months ended March 31, 2013were as follows:

	Restricted Stock and RSU Awards			PSU Awards
		Weighted Average			Weighted Average
		Grant Date			Grant Date
	Shares	Fair Value		Shares	Fair Value
Nonvested at January 1, 2013	594,194	$	37.15	999,513	$	34.55
Granted (a)	166,554		56.67	85,900		84.38
Vested (b)	(233,098)		37.18	(323,872)		39.46
Forfeited	(12,501)		38.49	(25,000)		50.71
Adjustment (c)	-		-	317,931		52.64
Nonvested at March 31, 2013 (d)	515,149	$	44.51	1,054,472	$	54.89

____________

• The grant date fair value of RSUs are based on our stock price on the date of grant. The grant date fair value of PSUs were determined by utilizing a Monte Carlo simulation model to generate a range of possible future stock prices for both us and the plan defined peer index over the three-year performance period. To estimate the fair value of PSUs granted during the three months ended March 31, 2013, we used a risk-free interest rate of 0.37% and an expected volatility rate of 25.36% (the plan defined peer index assumes 24.83%) and assumed a dividend yield of zero.
• The total fair value of shares vested during the three months ended March 31, 2013was $24.1 million.
• Vesting and payment of the PSUs is conditional on certain company and market performance goals being met during the relevant three-year performance period. The ultimate number of PSUs to be vested will depend on the extent to which the performance goals are met and can range from zero to three times the original awards. Pursuant to a review of our current and expected performance versus the performance goals, we revised our estimate of the ultimate number of certain of the PSUs to be vested. As a result, we recorded adjustments in 2013 to reflect the number of shares expected to be issued when the PSUs vest.
• At March 31, 2013, total unrecognized compensation expense was approximately $27.9 million related to nonvested PSUs and $21.6 million related to nonvested RSUs.

During the three months ended March 31, 2013, the total number of stock options exercised was 44,897. The aggregate intrinsic value of stock options exercisedduring first quarter was $1.3 million.

Earnings Per Share

Under current authoritative guidance for determining earnings per share, all unvested share-based payment awards that contain non-forfeitable rights to distributions are considered to be participating securities and therefore are included in the computation of earnings per share under the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common shares and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Our unvested RSUs contain rights to receive non-forfeitable distribution equivalents, and therefore we apply the two-class method of computing earnings per share. The calculation of earnings per share below excludes the income attributable to the unvested RSUs from the numerator. The following table summarizes basic and diluted earnings (in thousands, except share amounts):

	Three Months Ended March 31,
	2013		2012
Net income attributable to W. P. Carey	$	14,181	$	12,290
Allocation of distribution equivalents paid on unvested RSUs in excess of net income		(105)		(191)
Net income – basic		14,076		12,099
Income effect of dilutive securities, net of taxes		(27)		(24)
Net income – diluted	$	14,049	$	12,075
Weighted average shares outstanding – basic		68,967,209		40,037,496
Effect of dilutive securities		1,008,084		450,156
Weighted average shares outstanding – diluted		69,975,293		40,487,652

There were no potentially dilutive securities excluded from the computation of diluted earnings per share because their effect would have been anti-dilutive for the three months ended March 31, 2013and2012.

Redeemable Noncontrolling Interest

We account for a former employee's noncontrolling interest in WPCIas a redeemable noncontrolling interest, as we have an obligation to repurchase the interest from that individual, subject to certain conditions. Theindividual's interest is reflected at estimated redemption value for all periods presented.

The following table presents a reconciliation of redeemable noncontrolling interest (in thousands):

	Three Months Ended March 31,
	2013		2012
Balance - beginning of period	$	7,531	$	7,700
Redemption value adjustment		-		79
Net loss		(50)		(43)
Distributions		(54)		(816)
Change in other comprehensive (loss) income		(23)		9
Balance - end of period	$	7,404	$	6,929

Reclassifications Out of Accumulated Other Comprehensive Loss

The following table presents a reconciliation of changes in accumulated other comprehensive loss by component (in thousands):

	Three Months Ended March 31, 2013
	Gains and Losses on Derivative Instruments		Foreign Currency Translation Adjustments		Unrealized Gains and Losses on Marketable Securities		Total
Balance - beginning of period	$	(7,508)	$	2,828	$	31	$	(4,649)
Other comprehensive income before reclassifications		2,685		(7,940)		-		(5,255)
Amounts reclassified from accumulated other comprehensive income:
Interest expense		434		-		-		434
Other income and (expense)		(47)		-		-		(47)
Net income from equity investments in real estate and the Managed REITs		103		-		-		103
Total		490		-		-		490
Net current period other comprehensive income (loss)		3,175		(7,940)		-		(4,765)
Balance - end of period	$	(4,333)	$	(5,112)	$	31	$	(9,414)

	Three Months Ended March 31, 2012
	Gains and Losses on Derivative Instruments		Foreign Currency Translation Adjustments		Unrealized Gains and Losses on Marketable Securities		Total
Balance - beginning of period	$	(5,246)	$	(3,299)	$	38	$	(8,507)
Other comprehensive income before reclassifications		(54)		2,178		(3)		2,121
Amounts reclassified from accumulated other comprehensive income:
Interest expense		335		-		-		335
Net income from equity investments in real estate and the Managed REITs		75		-		-		75
Total		410		-		-		410
Net current period other comprehensive income (loss)		356		2,178		(3)		2,531
Balance - end of period	$	(4,890)	$	(1,121)	$	35	$	(5,976)

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Fair Value Measurements

3 Months Ended

Mar. 31, 2013

Fair Value Disclosures

Fair Value Measurements

Note8.Fair Value Measurements

For fair value measurements, the fair value of an asset is defined as the exit price, which is the amount that would either be received when an asset is sold or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance establishes a three-tier fair value hierarchy based on the inputs used in measuring fair value. These tiers are: Level 1, for which quoted market prices for identical instruments are available in active markets, such as money market funds, equity securities and U.S. Treasury securities; Level 2, for which there are inputs other than quoted prices included within Level 1 that are observable for the instrument, such as certain derivative instruments including interest rate caps and swaps; and Level 3, for securities that do not fall into Level 1 or Level 2 and for which little or no market data exists, therefore requiring us to develop our own assumptions.

Items Measured at Fair Value on a Recurring Basis

The methods and assumptions described below were used to estimate the fair value of each class of financial instrument. For significant Level 3 items we have also provided the unobservable inputs along with their weighted average ranges.

Money Market Funds — Our money market funds, which are included in Cash in the consolidated financial statements, are comprised of government securities and U.S. Treasury bills. These funds were classified as Level 1 as we used quoted prices from active markets to determine their fair values.

Derivative Assets — Our derivative assets, which are included in Other assets, net in the consolidated financial statements, are comprised of interest rate cap, foreign currency forward contracts and stock warrants (Note 9). The interest rate cap and foreign currency forward contracts were measured at fair value using readily observable market inputs, such as quotations on interest rates, and were classified as Level 2 as these instruments are custom, over-the-counter contracts with various bank counterparties that are not traded in the open market. The stock warrants were measured at fair value using internal valuation models that incorporate market inputs and our own assumptions about future cash flows. We classified these assets as Level 3 because these assets are not traded in an active market.

Derivative Liabilities — Our derivative liabilities, which are included in Accounts payable, accrued expenses and other liabilities in the consolidated financial statements, are comprised of interest rate swaps and foreign currency forward contracts (Note 9). These derivative instruments were measured at fair value using readily observable market inputs, such as quotations on interest rates. These derivative instruments were classified as Level 2 because they are custom, over-the-counter contracts with various bank counterparties that are not traded in an active market.

Redeemable Noncontrolling Interest — We account for the noncontrolling interest in W. P. Carey International, LLC (“WPCI”) as a redeemable noncontrolling interest (Note 12). We determined the valuation of the redeemable noncontrolling interest using widely accepted valuation techniques, including expected discounted cash flows of the investment as well as the income capitalization approach, which considers prevailing market capitalization rates. We classified this liability as Level 3. Unobservable inputs for WPCI include a discount for lack of marketability, a discount rate and EBITDA multiples with weighted average ranges of 20% – 30%, 22% – 26% and 3x – 5x, respectively. Significant increases or decreases in any one of these inputs in isolation would result in significant changes in the fair value measurement.

Our other financial instruments had the following carrying values and fair values as of the dates shown (in thousands):

		March 31, 2013				December 31, 2012
	Level	Carrying Value		Fair Value		Carrying Value		Fair Value
Non-recourse debt (a)	3	$	1,695,335	$	1,706,567	$	1,715,397	$	1,727,985
Senior Credit Facility	2		298,000		298,000		253,000		253,000
Deferred acquisition fees receivable (b)	3		21,531		25,330		28,654		33,632

__________

• We determined the estimated fair value of our debt instruments using a discounted cash flow model with rates that take into account the credit of the tenants, where applicable, and interest rate risk. We also considered the value of the underlying collateral taking into account the quality of the collateral, the credit quality of the company, the time until maturity and the current market interest rate.
• We determined the estimated fair value of our deferred acquisition feesbased on an estimate of discounted cash flows using two significant unobservable inputs, which are the leverage adjusted unsecured spread and an illiquidity adjustment with a weighted-average range of 275 – 325 bps and 50 – 100 bps, respectively. Significant increases or decreases to these inputs in isolation would result in a significant change in the fair value measurement.

We estimated that our other financial assets and liabilities (excluding net investments in direct financing leases) had fair values that approximated their carrying values at both March 31, 2013 and December 31, 2012.

Items Measured at Fair Value on a Non-Recurring Basis (Including Impairment Charges)

We periodically assess whether there are any indicators that the value of our real estate investments may be impaired or that their carrying value may not be recoverable. For investments in real estate for which an impairment indicator is identified, we follow a two-step process to determine whether the investment is impaired and to determine the amount of the charge. First, we compare the carrying value of the real estate to the future undiscounted net cash flows that we expect the real estate will generate, including any estimated proceeds from the eventual sale of the real estate. If this amount is less than the carrying value, the real estate is considered to be impaired, and we then measure the loss as the excess of the carrying value of the real estate over the estimated fair value of the real estate, which is primarily determined using market information such as recent comparable sales or broker quotes. If relevant market information is not available or is not deemed appropriate, we perform a future net cash flow analysis, discounted for inherent risk associated with each investment.We determined that the significant inputs used to value these investments fall within Level 3. As a result of our assessments, we calculated impairment charges based on market conditions and assumptions that existed at the time. The valuation of real estate is subject to significant judgment and actual results may differ materially if market conditions or the underlying assumptions change.

The following tables present information about our other assets that were measured on a fair value basis (in thousands):

	Three Months Ended March 31, 2013				Three Months Ended March 31, 2012
	Total Fair Value		Total Impairment		Total Fair Value		Total Impairment
	Measurements		Charges		Measurements		Charges
Net investments in properties (a) (b)	$	3,350	$	2,208	$	-	$	-
Operating real estate (a) (c)		3,812		1,071		-		-
Total impairment charges included in expenses		7,162		3,279		-		-
Equity investments in real estate (d)		14,220		2,684		27,460		298
Total impairment charges included in income from continuing operations		21,382		5,963		27,460		298
Impairment charges included in discontinued operations (a) (e)		-		-		27,047		5,724
Total impairment charges	$	21,382	$	5,963	$	54,507	$	6,022

__________

• These fair value measurements were developed by third-party sources, subject to our corroboration for reasonableness.
• During the three months ended March 31, 2013, we recognized an impairment charge of $2.2 million on a property previously leased to American Pad & Paper LLC, which is currently classified as Real estate on the consolidated balance sheet, in order to reduce the carrying value of the property to its estimated fair value, which approximated its estimated selling price. The guarantor of the lease filed for bankruptcy in March 2012 after the tenant stopped making lease payments. As a result, we terminated the tenant's right to possess the property in January 2013 and entered into a contract to sell the property to a third party. There can be no assurance that we will be able to sell this property at an acceptable price or at all.
• During the three months ended March 31, 2013, we recognized an impairment charge of $1.1 million on our hotel property, which is currently classified as Operating estate on the consolidated balance sheet, to write down the property's carrying value to its fair value, which approximated its estimated selling price. There can be no assurance that we will be able to sell this property at an acceptable price or at all.
• During the three months ended March 31, 2013 and 2012, we incurred other-than-temporary impairment chargesof$2.7 million and $0.3 million, respectively, on our investment in the special member interestin CPA®:16 – Global's operating partnership to reduce its carrying value to its estimated fair value, which had declined. This investment's fair value was obtained using an estimate of discounted cash flows using two significant unobservable inputs, which are the discount rate and the estimated general and administrative costs as a percentage of assets under management with a weighted average range of 12.75% – 15.75% and 35 bps – 45 bps, respectively. Significant increases or decreases to these inputs in isolation would result in a significant change in the fair value measurement. The valuation was also dependent upon the estimated date of a liquidity event for CPA®:16 – Global because cash flows attributable to this investment would cease upon such event. Therefore, the fair value of this investment may decline in the future as the estimated liquidation date approaches.
• During the three months ended March 31, 2012, we recorded impairment charges on properties sold totaling $5.7 million. These impairment charges, which are included in discontinued operations, were the result of reducing these properties' carrying values to their estimated fair value in connection with and prior to anticipated sales.

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Risk Management and Use of Derivative Financial Instruments (Details 1) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Derivatives Not Designated as Hedging Instruments
Stock warrants	$ 2,000	$ 1,720
Interest rate swap	(14,556)	(16,686)
Total derivatives, assets	2,355	1,745
Total derivatives, liabilities	(19,674)	(24,578)
Foreign currency contracts
Derivatives Designated as Hedging Instruments
Derivative Instruments in Hedges, Assets, at Fair Value	335
Derivative Instruments in Hedges, Liabilities, at Fair Value	(73)	(2,067)
Interest rate swap
Derivatives Designated as Hedging Instruments
Derivative Instruments in Hedges, Liabilities, at Fair Value	(5,045)	(5,825)
Interest rate cap
Derivatives Designated as Hedging Instruments
Derivative Instruments in Hedges, Assets, at Fair Value	$ 20	$ 25

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Equity Investment in Real Estate and the Managed REITs

3 Months Ended

Mar. 31, 2013

Equity Investments in Real Estate and the Managed REITs

Equity Investments in Real Estate and REITs

Note6.Equity Investments in Real Estate and the Managed REITs

We own interests in certain unconsolidated real estate investments and the Managed REITs. We account for our interests in these investments under the equity method of accounting(i.e., at cost, increased or decreased by our share of earnings or losses, less distributions, plus contributions and other adjustments required by equity method accounting, such as basis differences from other-than-temporary impairments). The following table presents net income from equity investments in real estate and the Managed REITs,which represents our proportionate share of the income or losses of these investments as well as certain adjustments related to other-than-temporary impairment chargesand amortization of basis differences related to purchase accounting adjustments (in thousands):

		Three Months Ended March 31,
		2013		2012
Equity earnings from equity investments in the Managed REITs		$	22	$	1,848
Other-than-temporary impairment charges on our special member interest
	in CPA®:16 – Global operating partnership		(2,684)		(298)
Distributions of Available Cash (Note 3)			7,891		6,974
Deferred revenue earned (Note 3)			2,123		2,123
	Equity in net income from the Managed REITs		7,352		10,647
Equity in net earnings from other equity investments			3,304		3,339
	Total net income from equity investments in real estate and the Managed REITs	$	10,656	$	13,986

Managed REITs

We own interests in the Managed REITs and account for these interests under the equity method because, as their advisor and through our ownership in their common stock, we do not exert control over, but we do have the ability to exercise significant influence on, the Managed REITs.

The following table sets forth certain information about our investments in the Managed REITs (dollars in thousands):

	% of Outstanding Shares Owned at		Carrying Amount of Investment at
Fund	March 31, 2013	December 31, 2012	March 31, 2013 (a)		December 31, 2012
CPA®:16 – Global (b)	18.456%	18.330%	$	294,339	$	296,301
CPA®:16 – Global operating partnership (c)	0.015%	0.015%		14,220		17,140
CPA®:17 – Global (d)	1.429%	1.290%		43,368		38,977
CPA®:17 – Global operating partnership (e)	0.015%	0.015%		-		-
CWI	0.447%	0.400%		1,147		774
CWI operating partnership	0.015%	0.015%		(47)		(47)
			$	353,027	$	353,145

__________

• Includes asset management fees receivable, for which 171,808 shares, 175,316 shares and 15,236 shares of CPA®:16 – Global, CPA®:17 – Global and CWI, respectively, were issued during the second quarter of 2013.
• We received distributions of $6.2 million and $6.0 million from this investment during thethree months ended March 31, 2013 and 2012, respectively.
• During the three months ended March 31, 2013 and 2012, we recognized other-than-temporary impairment charges of $2.7 million and $0.3 million, respectively, on this investment to reduce the carrying value of our interest in the investment to its estimated fair value (Note 8). In addition, we received distributions of $3.6 million and $4.3 million from this investment during the three months ended March 31, 2013 and 2012, respectively.
• We received distributions of $0.6 million and $0.3 million from this investment during the three months ended March 31, 2013 and 2012, respectively.
• We received distributions of $4.3 million and $2.7 million from this investment during the three months ended March 31, 2013 and 2012, respectively.

The following tables present preliminary combined summarized financial information for the Managed REITs. Certain prior year amounts have been retrospectively adjusted to reflect the disposition (or planned disposition) of certain properties as discontinued operations. Amounts provided are expected total amounts attributable to the Managed REITs and do not represent our proportionate share (in thousands):

	March 31, 2013		December 31, 2012
Real estate, net	$	6,193,018	$	6,049,926
Other assets		2,025,509		2,002,620
Total assets		8,218,527		8,052,546
Debt		(3,676,503)		(3,509,394)
Accounts payable, accrued expenses and other liabilities		(456,211)		(450,362)
Total liabilities		(4,132,714)		(3,959,756)
Redeemable noncontrolling interests		(21,094)		(21,747)
Noncontrolling interests		(167,140)		(170,140)
Stockholders’ equity	$	3,897,579	$	3,900,903

	Three Months Ended March 31,
	2013		2012
Revenues	$	178,685	$	212,890
Expenses		(171,253)		(175,440)
Net income from continuing operations	$	7,432	$	37,450
Net income attributable to the Managed REITs (a) (b)	$	10,352	$	33,197

_________

• Inclusive of impairment charges recognized by the Managed REITs totaling $9.3 millionand $1.2 million during thethree months ended March 31, 2013 and2012, respectively. These impairment charges reduced our income earned from these investments by approximately $1.7 million and $0.1 million during the three months ended March 31, 2013 and2012, respectively.
• Amounts included net gains (losses) on sale of real estate recorded by the Managed REITs totaling $2.7 million and ($2.1) million during the three months ended March 31, 2013 and2012, respectively.

Interests in Unconsolidated Real Estate Investments

We own interests in single-tenant net leased properties that are leased to companies through noncontrolling interests (i) in partnerships and limited liability companies that we do not control but over which we exercise significant influenceor (ii) as tenants-in-common subject to common control. Generally, the underlying investments are jointly-owned with affiliates. We account for these investments under the equity method of accounting.

The following table sets forth our ownership interests in our equity investments in real estate, excluding the Managed REITs, and their respective carrying values (dollars in thousands):

	Ownership Interest	Carrying Value at
Lessee	at March 31, 2013	March 31, 2013		December 31, 2012
Schuler A.G. (a) (b) (d)	67%	$	62,564	$	62,006
Hellweg Die Profi-Baumärkte GmbH & Co. KG (Hellweg 2) (a) (e)	40%		40,236		42,387
Advanced Micro Devices (c) (d)	33%		24,027		23,667
The New York Times Company (e)	18%		20,836		20,584
C1000 Logistiek Vastgoed B.V. (a) (c) (f)	15%		13,824		14,929
Del Monte Corporation (c) (d)	50%		7,969		8,318
U. S. Airways Group, Inc. (c)	75%		7,928		7,995
The Talaria Company (Hinckley) (d)	30%		7,842		7,702
The Upper Deck Company (d)	50%		7,187		7,198
Waldaschaff Automotive GmbH and Wagon Automotive Nagold GmbH (a) (f)	33%		6,173		6,323
Builders FirstSource, Inc. (d)	40%		5,097		5,138
PetSmart, Inc. (d)	30%		3,825		3,808
Consolidated Systems, Inc. (c) (d)	60%		3,249		3,278
Wanbishi Archives Co. Ltd. (a) (f) (g) (h)	3%		484		(736)
SaarOTEC (a) (d) (h)	50%		(176)		(116)
		$	211,065	$	212,481

__________

• The carrying value of the investmentis affected by the impact of fluctuations in the exchange rate of the foreign currency.
• Represents a tenancy-in-common interest, under which the investment is under common control by us and our investment partner.
• These investments are tenancy-in-common interests whereby the property is encumbered by debt for which we are jointly and severally liable.  The co-obligors include our Managed REITs, and the aggregate amount due under the arrangements was approximately $241.6 million.  Of this amount, $113.6 million represents the aggregate amount we agreed to pay and is included within the carrying value of each of these investments, where applicable. The carrying value of these investments also includes the undepreciated cost of the related properties.
• This investment is jointly-owned with CPA®:16 – Global.
• This investment is jointly-owned with CPA®:16 – Global and CPA®:17 – Global.
• This investment is jointly-owned with CPA®:17 – Global.
• We acquired our interest in this investment in December 2012. In January 2013, we made a purchase accounting adjustment of $1.3 million to this investment.
• At March 31, 2013 and December 31, 2012, as applicable, we intended to fund our share of the investment's future operating deficits if the need arose. However, we had no legal obligation to pay for any of the investment's liabilities nor did we have any legal obligation to fund operating deficits.

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Intangible Assets and Liabilities and Goodwill

3 Months Ended

Mar. 31, 2013

Goodwill And Intangible Assets Disclosure

Goodwill And Intangible Assets Disclosure

Note7.Intangible Assetsand Liabilities and Goodwill

In connection with our acquisitions of properties, we have recorded net lease intangibles which are being amortized over periods ranging from one year to 40 years. In-place lease and above-market rent are included in In-place lease, net and Above-market rent, net in the consolidated financial statements. Tenant relationship, trade name, management contracts and software license intangibles are included in Other intangible assets, net in the consolidated financial statements. Below-market rent, above-market ground lease, and below-market purchase option intangibles are included in Accounts payable, accrued expenses and other liabilities in the consolidated financial statements.

In connection with our investment activity during the three months ended March 31, 2013, we have recorded net lease intangiblescomprised as follows (dollars in thousands):

	Weighted-Average
	Life			Amount
Amortizable Intangible Assets
In-place lease		10.0	$	41,963
Amortizable Intangible Liabilities
Below-market rent		20.0	$	(28,646)

	Real Estate		Investment
	Ownership		Management		Total
Balance - beginning of period	$	265,525	$	63,607	$	329,132
Allocation of goodwill to dispositions of properties within the reporting unit (a)		(658)		-		(658)
Balance - end of period	$	264,867	$	63,607	$	328,474

__________

• Amount is included in Loss on sale of real estate within discontinued operations.

Intangible assets and liabilities and goodwill are summarized as follows (in thousands):

	March 31, 2013						December 31, 2012
	Gross				Net		Gross				Net
	Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	Amount		Amortization		Amount		Amount		Amortization		Amount
Amortizable Intangible Assets
Management contracts	$	32,765	$	(31,561)	$	1,204	$	32,765	$	(31,283)	$	1,482
Software license		600		-		600		-		-		-
		33,365		(31,561)		1,804		32,765		(31,283)		1,482
Lease Intangibles:
In-place lease		509,394		(41,262)		468,132		474,629		(27,351)		447,278
Tenant relationship		8,143		(3,438)		4,705		8,149		(3,406)		4,743
Above-market rent		290,676		(22,831)		267,845		293,627		(13,742)		279,885
		808,213		(67,531)		740,682		776,405		(44,499)		731,906
Unamortizable Goodwill and Indefinite-Lived Intangible Assets
Goodwill		328,474		-		328,474		329,132		-		329,132
Trade name		3,975		-		3,975		3,975		-		3,975
		332,449		-		332,449		333,107		-		333,107
	$	1,174,027	$	(99,092)	$	1,074,935	$	1,142,277	$	(75,782)	$	1,066,495
Amortizable Intangible Liabilities
Below-market rent	$	(114,497)	$	5,399	$	(109,098)	$	(86,171)	$	3,227	$	(82,944)
Above-market ground lease		(6,896)		205		(6,691)		(6,896)		103		(6,793)
		(121,393)		5,604		(115,789)		(93,067)		3,330		(89,737)
Unamortizable Intangible Liabilities
Below-market purchase option (a)		(16,711)		-		(16,711)		(16,711)		-		(16,711)
Total Intangible Liabilities	$	(138,104)	$	5,604	$	(132,500)	$	(109,778)	$	3,330	$	(106,448)

_________

• The fair value of the below-market purchase option was equal to the residual value at the date of acquisition.

Net amortization of intangibles, including the effect of foreign currency translation, was $21.5 million and $1.3million for thethree months ended March 31, 2013 and 2012, respectively. Amortization of below-market rent, above-market rent and above-market ground lease intangibles is recorded as an adjustment to Lease revenues, while amortization of management contracts, software license, in-place lease and tenant relationship intangibles is included in Depreciation and amortization.

Based on the intangible assets and liabilities recorded at March 31, 2013, scheduled annual net amortization for the remainder of 2013, each of the next four years and thereafter is as follows (in thousands):

Years Ending December 31,	Total
2013 (remainder)	$	64,361
2014		81,140
2015		73,693
2016		71,759
2017		68,451
Thereafter		267,293
Total	$	626,697

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Risk Management and Use of Derivative Financial Instruments

3 Months Ended

Mar. 31, 2013

Risk Management and Use of Derivative Financial Instruments

Risk Management and Use of Derivative Financial Instruments

Note9.Risk Management and Use of Derivative Financial Instruments

In the normal course of our ongoing business operations, we encounter economic risk. There are three main components of economic risk that impact us: interest rate risk, credit risk and market risk. We are primarily subject to interest rate risk on our interest-bearing liabilities, including our Senior Credit Facility (Note 10). Credit risk is the risk of default on our operations and our tenants' inability or unwillingness to make contractually required payments. Market risk includes changes in the value of our properties and related loans, as well as changes in the value of our other securities and the shares we hold in the Managed REITs due to changes in interest rates or other market factors. In addition, we own investments in the European Union and are subject to the risks associated with changing foreign currency exchange rates.

Use of Derivative Financial Instruments

When we use derivative instruments, it is generally to reduce our exposure to fluctuations in interest rates and foreign currency exchange rate movements. We have not entered, and do not plan to enter into, financial instruments for trading or speculative purposes. The primary risks related to our use of derivative instruments include default by a counterparty to a hedging arrangement on its obligation and a downgrade in the credit quality of a counterparty to such an extent that our ability to sell or assign our side of the hedging transaction is impaired. While we seek to mitigate these risks by entering into hedging arrangements with counterparties that are large financial institutions that we deem to be creditworthy, it is possible that our hedging transactions, which are intended to limit losses, could adversely affect our earnings. Furthermore, if we terminate a hedging arrangement, we may be obligated to pay certain costs, such as transaction or breakage fees. We have established policies and procedures for risk assessment and the approval, reporting and monitoring of derivative financial instrument activities.

We measure derivative instruments at fair value and record them as assets or liabilities, depending on our rights or obligations under the applicable derivative contract. Derivatives that are not designated as hedges must be adjusted to fair value through earnings. For a derivative designated and qualified as a cash flow hedge, the effective portion of the change in fair value of the derivative is recognized in Other comprehensive income until the hedged item is recognized in earnings. The ineffective portion of a derivative's change in fair value is immediately recognized in earnings.

The following table sets forth certain information regarding our derivative instruments (in thousands):

Derivatives Designated		Asset Derivatives Fair Value at				Liability Derivatives Fair Value at
as Hedging Instruments	Balance Sheet Location	March 31, 2013		December 31, 2012		March 31, 2013		December 31, 2012
Foreign currency contracts	Other assets, net	$	335	$	-	$	-	$	-
Interest rate cap	Other assets, net		20		25		-		-
Foreign currency contracts	Accounts payable, accrued
	expenses and other liabilities		-		-		(73)		(2,067)
Interest rate swaps	Accounts payable, accrued		-		-
	expenses and other liabilities						(5,045)		(5,825)
Derivatives Not Designated
as Hedging Instruments
Stock warrants (a)	Other assets, net		2,000		1,720		-		-
Interest rate swaps (b)	Accounts payable, accrued
	expenses and other liabilities		-		-		(14,556)		(16,686)
Total derivatives		$	2,355	$	1,745	$	(19,674)	$	(24,578)

__________

• In connection with the Merger, we acquired warrants from CPA®:15, which were granted by Hellweg 2 to CPA®:15. These warrants give us participation rights to any distributions made by Hellweg 2 and we are entitled to a cash distribution that equals a certain percentage of the liquidity event price of Hellweg 2, should a liquidity event occur.
• These interest rate swaps were acquired from CPA®:15 in the Merger. They do not qualify for hedge accounting; however, they do protect against fluctuations in interest rates related to the variable-rate debt we acquired in the Merger.

All derivative transactions with an individual counterparty are governed by a master International Swap and Derivatives Association agreement, which can be considered as a master netting arrangement; however, we report all our derivative instruments on a gross basis on the balance sheet. At March 31, 2013, no cash collateral has been posted nor received for any of our derivative positions.

The following tables present the impact of derivative instruments on the consolidated financial statements (in thousands):

	Amount of Gain (Loss) Recognized in
	Other Comprehensive (Loss) Income
	on Derivatives (Effective Portion) (a)
	Three Months Ended March 31,
Derivatives in Cash Flow Hedging Relationships	2013		2012
Interest rate swaps	$	828	$	291
Interest rate cap		(3)		-
Foreign currency contracts		2,248		-
Total	$	3,073	$	291

	Amount of Gain (Loss) Reclassified
	from Other Comprehensive (Loss) Income
	into Income (Effective Portion) (a)
	Three Months Ended March 31,
Derivatives in Cash Flow Hedging Relationships	2013		2012
Interest rate swaps	$	(434)	$	(335)
Foreign currency contracts		47		-
Total	$	(387)	$	(335)

		Amount of Gain (Loss) Recognized in
		Income on Derivatives
Derivatives Not in Cash Flow	Location of Gain (Loss)	Three Months Ended March 31,
Hedging Relationships	Recognized in Income	2013		2012
Interest rate swaps	Other income and (expenses)	$	1,679	$	-
Stock warrants	Other income and (expenses)		280		-
Total		$	1,959	$	-

__________

• Amounts recognized in other comprehensive (loss) income and reclassified from other comprehensive (loss) income into income exclude net gains of $0.1 million recognized on unconsolidated jointly-owned investments for the three months ended March 31, 2013 and 2012.

See below for information on our purposes for entering into derivative instrumentsand for information on derivative instruments owned by unconsolidated entities, which are excluded from the tables above.

Interest Rate Swaps and Caps

We are exposed to the impact of interest rate changes primarily through our borrowing activities. To limit this exposure, we attempt to obtain mortgage financing on a long-term, fixed-rate basis. However, from time to time, we or our investment partners may obtain variable-rate mortgage loans and, as a result, may enter into interest rate swap agreements or interest rate cap agreements with counterparties. Interest rate swaps, which effectively convert the variable-rate debt service obligations of the loan to a fixed rate, are agreements in which one party exchanges a stream of interest payments for a counterparty's stream of cash flow over a specific period. The notional, or face, amount on which the swaps are based is not exchanged. Interest rate caps limit the effective borrowing rate of variable-rate debt obligations while allowing participants to share in downward shifts in interest rates. Our objective in using these derivatives is to limit our exposure to interest rate movements.

The interest rate swaps that we had outstanding on our consolidated subsidiaries at March 31, 2013that were designated as cash flow hedges are summarized as follows (currency in thousands):

		Notional		Effective	Effective	Expiration	Fair Value at
Description	Type	Amount		Interest Rate	Date	Date	March 31, 2013 (a)
3-Month Euro Interbank Offered Rate (“Euribor”)	“Pay-fixed” swap	€	6,266	4.2%	3/2008	3/2018	$	(1,247)
1-Month London Interbank Offered rate (“LIBOR”)	“Pay-fixed” swap	$	4,380	3.0%	4/2010	4/2015		(221)
1-Month LIBOR	“Pay-fixed” swap	$	33,484	3.0%	7/2010	7/2020		(3,306)
1-Month LIBOR	“Pay-fixed” swap	$	6,858	4.4%	6/2012	3/2022		(58)
1-Month LIBOR	“Pay-fixed” swap	$	25,494	3.9%	8/2012	8/2022		(153)
3-Month Euribor	Interest rate cap	€	68,228	2.0%	12/2012	12/2014		20
1-Month LIBOR	“Pay-fixed” swap	$	3,471	3.7%	12/2012	2/2019		(25)
3-Month Euribor	“Pay-fixed” swap	€	2,250	1.2%	3/2013	3/2020		(35)
							$	(5,025)

__________

• Amounts are based on the exchange rate of the euro at March 31, 2013, where applicable.

The interest rate swaps that we had outstanding on our consolidated subsidiaries at March 31, 2013that were not designated as hedginginstruments are summarized as follows (currency in thousands):

		Notional		Effective	Effective	Expiration	Fair Value at
Description (a) (b)	Type	Amount		Interest Rate	Date	Date	March 31, 2013 (c)
3-Month Euribor	“Pay-fixed” swap	€	100,000	3.7%	7/2006	7/2016	$	(13,273)
3-Month Euribor	“Pay-fixed” swap	€	15,970	0.9%	4/2012	7/2013		(44)
3-Month Euribor	“Pay-fixed” swap	€	6,388	4.4%	4/2008	10/2015		(416)
3-Month Euribor	“Pay-fixed” swap	€	5,450	4.3%	4/2007	7/2016		(823)
							$	(14,556)

__________

• These interest rate swaps were acquired from CPA®:15 in the Merger. They do not qualify for hedge accounting; however, they do protect against fluctuations in interest rates related to the variable-rate debt we acquired in the Merger.
• Notional and fair value amounts include, on a combined basis, portions attributable to noncontrolling interests totaling $33.5 million and $3.6 million, respectively.
• Amounts are based on the exchange rate of the euro at March 31, 2013, where applicable.

The interest rate caps that our unconsolidated jointly-owned investments had outstanding at March 31, 2013and were designated as cash flow hedges are summarized as follows (currency in thousands):

	Ownership
	Interest in Investee		Notional				Effective	Expiration	Fair Value at
Description	at March 31, 2013	Type	Amount		Cap Rate	Spread	Date	Date	March 31, 2013
3-Month LIBOR (a)	17.8%	Interest rate cap	$	118,374	4.0%	4.8%	8/2009	8/2014	$	-
1-Month LIBOR (b)	79.0%	Interest rate cap		17,146	3.0%	4.0%	9/2009	4/2014		-
									$	-

__________

• The applicable interest rate of the related loan was 2.8% atMarch 31, 2013; therefore, the interest rate cap was not being utilized at that date.
• The applicable interest rate of the related loan was 4.2% at March 31, 2013; therefore, the interest rate cap was not being utilized at that date

Foreign Currency Contracts

We are exposed to foreign currency exchange rate movements. We manage foreign currency exchange rate movements by generally placing our debt service obligation on an investment in the same currency as the tenant's rental obligation to us. This reduces our overall exposure to the net cash flow from that investment. However, we are subject to foreign currency exchange rate movements to the extent of the difference in the timing and amount of the rental obligation and the debt service. We may also face challenges with repatriating cash from our foreign investments. We may encounter instances where it is difficult to repatriate cash because of jurisdictional restrictions or because repatriating cash may result in current or future tax liabilities. Realized and unrealized gains and losses recognized in earnings related to foreign currency transactions are included in Other income and (expenses) in the consolidated financial statements.

In order to hedge certain of our foreign currency cash flow exposures, we enter into foreign currency forward contracts. A foreign currency forward contract is a commitment to deliver a certain amount of currency at a certain price on a specific date in the future. By entering into forward contracts, we are locked into a future currency exchange rate for the term of the contract. These instruments guarantee that the exchange rate will not fluctuate beyond the range of the options' strike prices.

The following table presents the foreign currency derivative contracts we had outstanding at March 31, 2013,whichwere designated as cash flow hedges (currency in thousands, except strike price):

	Notional		Strike		Effective	Expiration	Fair Value at
Type	Amount		Price		Date	Date	March 31, 2013 (a)
Foreign currency forward contracts	€	47,669	$	1.28 - 1.30	5/2012	6/2013 - 6/2017	$	(68)
Foreign currency forward contracts	€	8,700	$	1.35	12/2012	9/2017 - 3/2018		330
							$	262

__________

• Amounts are based on the applicable exchange rate of the euro at March 31, 2013.

Other

Amounts reported in Other comprehensive income related to interest rate swaps will be reclassified to interest expense as interest payments are made on our variable-rate debt. Amounts reported in Other comprehensive income related to foreign currency contracts will be reclassified to Other income and (expenses) when the hedged foreign currency proceeds from foreign operations are repatriated to the U.S. At March 31, 2013, we estimate that an additional $2.1 million will be reclassified as interest expense during the next 12 months related to our interest rate swaps.

We measure our credit exposure on a counterparty basis as the net positive aggregate estimated fair value of our derivatives, net of collateral received, if any. No collateral was received as of March 31, 2013. At March 31, 2013, our total credit exposure and the maximum exposure to any single counterparty was $0.3 million, inclusive of noncontrolling interest.

Some of the agreements we have with our derivative counterparties contain certain credit contingent provisions that could result in a declaration of default against us regarding our derivative obligations if we either default or are capable of being declared in default on certain of our indebtedness. At March 31, 2013, we had not been declared in default on any of our derivative obligations. The estimated fair value of our derivatives that were in a net liability position atMarch 31, 2013was $20.7 million, which included accrued interest but excluded any adjustment for nonperformance risk. If we had breached any of these provisions at March 31, 2013, we could have been required to settle our obligations under these agreements at their aggregate termination value of $21.8million.

Portfolio Concentration Risk

Concentrations of credit risk arise when a group of tenants is engaged in similar business activities or is subject to similar economic risks or conditions that could cause them to default on their lease obligations to us. We regularly monitor our portfolio to assess potential concentrations of credit risk. While we believe our portfolio is reasonably well diversified, it does contain concentrations in excess of 10%, based on the percentage of our annualized contractual minimum base rent for the firstquarter of 2013, in certain areas. There were no significant changes to our portfolio concentrations at March 31, 2013 as compared to December 31, 2012.

Except for our investment in CPA®:16 – Global, there were no significant concentrations, individually or in the aggregate, related to our unconsolidated jointly-owned investments. At March 31, 2013, we owned approximately 18.5% of CPA®:16 – Global, which had total assets at that date of approximately $3.3 billion consisting of a portfolio comprised offull or partial ownership interests in 494 properties, as well as two hotel properties and has certain concentrations within its portfolio, which are outlined in its periodic filings with the SEC.

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Risk Management and Use of Derivative Financial Instruments (Details 5) In Thousands, unless otherwise specified				3 Months Ended
	Mar. 31, 2013 USD ($)	Mar. 31, 2013 Cash Flow Hedging USD ($)	Mar. 31, 2013 Interest rate cap USD ($)	Mar. 31, 2013 3-Month Euro Interbank Offering Rate Interest rate swap Cash Flow Hedging USD ($)	Mar. 31, 2013 3-Month Euro Interbank Offering Rate Interest rate swap Cash Flow Hedging EUR (€)	Mar. 31, 2013 1-Month London Interbank Offered rate (LIBOR) Interest rate swap Cash Flow Hedging USD ($)	Mar. 31, 2013 3-Month Euribor Interest rate cap Cash Flow Hedging USD ($)	Mar. 31, 2013 3-Month Euribor Interest rate cap Cash Flow Hedging EUR (€)	Mar. 31, 2013 3-Month Euribor Interest rate swap Cash Flow Hedging USD ($)	Mar. 31, 2013 3-Month Euribor Interest rate swap Cash Flow Hedging EUR (€)	Mar. 31, 2013 1-Month LIBOR July Interest rate swap Cash Flow Hedging USD ($)	Mar. 31, 2013 1-Month LIBOR August Interest rate swap Cash Flow Hedging USD ($)	Mar. 31, 2013 1-Month LIBOR June Interest rate swap Cash Flow Hedging USD ($)	Mar. 31, 2013 1-Month LIBOR December Interest rate swap Cash Flow Hedging USD ($)
Derivative Disclosure
Notional Amount					€ 6,266	$ 4,380		€ 68,228		€ 2,250	$ 33,484	$ 25,494	$ 6,858	$ 3,471
Effective Interest Rate				4.20%	4.20%	3.00%	2.00%	2.00%	1.20%	1.20%	3.00%	3.90%	4.40%	3.70%
Effective Date				Mar. 01, 2008	Mar. 01, 2008	Apr. 01, 2010	Dec. 01, 2012	Dec. 01, 2012	Mar. 01, 2013	Mar. 01, 2013	Jul. 01, 2010	Aug. 01, 2012	Jun. 01, 2012	Dec. 01, 2012
Expiration Date				Mar. 01, 2018	Mar. 01, 2018	Apr. 01, 2015	Dec. 01, 2014	Dec. 01, 2014	Mar. 01, 2020	Mar. 01, 2020	Jul. 01, 2020	Aug. 01, 2022	Mar. 01, 2022	Feb. 01, 2019
Fair Value	$ 262	$ (5,025)	$ 0	$ (1,247)		$ (221)	$ 20		$ (35)		$ (3,306)	$ (153)	$ (58)	$ (25)

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Risk Management and Use of Derivative Financial Instruments (Details 7) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013
Derivative Disclosure
Fair Value	$ 262
Interest rate cap
Derivative Disclosure
Fair Value	0
3-Month Libor August | Interest rate cap
Derivative Disclosure
Equity method investment, ownership percentage	17.80%
Notional Amount	118,374
Cap Rate	4.00%
Spread	4.80%
Effective Date	Aug. 01, 2009
Expiration Date	Aug. 31, 2014
Fair Value	0
1-Month Libor September | Interest rate cap
Derivative Disclosure
Equity method investment, ownership percentage	79.00%
Notional Amount	17,146
Cap Rate	3.00%
Spread	4.00%
Effective Date	Sep. 01, 2009
Expiration Date	Apr. 30, 2014
Fair Value	$ 0

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Risk Management and Use of Derivative Financial Instruments (Details 4) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013
Amount of Gain (Loss) Recognized in Income on Derivatives
Derivative Instruments, Gain (Loss) Recognized in Income, Net	$ 1,959
Interest rate swap
Amount of Gain (Loss) Recognized in Income on Derivatives
Derivative Instruments, Gain (Loss) Recognized in Income, Net	1,679
Stock warrants
Amount of Gain (Loss) Recognized in Income on Derivatives
Derivative Instruments, Gain (Loss) Recognized in Income, Net	$ 280

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Business (Narratives) (Details)	3 Months Ended
	Mar. 31, 2013 property sqft	Mar. 31, 2012 tenant
Additional disclosures
Square footage of all real estate properties	39,000,000
Number of real estate properties	422
Number of tenants		124
Occupancy rate	98.80%
Managed Reits
Additional disclosures
Square footage of all real estate properties	78,600,000
Number of real estate properties	703
Number of tenants	211
Occupancy rate	98.40%

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Intangible Assets and Liabilities and Goodwil (Narratives) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Finite-Lived Intangible Assets, Net [Abstract]
Amortization of intangible assets	$ 21.5	$ 1.3
Maximum
Finite-Lived Intangible Assets, Net [Abstract]
Finite lived intangible assets useful life	40 years
Minimum
Finite-Lived Intangible Assets, Net [Abstract]
Finite lived intangible assets useful life	1 year

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Segment Reporting

3 Months Ended

Mar. 31, 2013

Segment Reporting

Segment Reporting

Note14.Segment Reporting

We evaluate our results from operations by our two major business segments — Real Estate Ownership and Investment Management (Note1).Effective April 1, 2012, we include distributions of Available Cash received from the operating partnershipsof the Managed REITs and deferred revenue earned from our special member interest in CPA®:16 – Global's operating partnershipin our Real Estate Ownership segment.Results of operations for the prior period have been reclassified to conform to the current period presentation.

The following table presents a summary of comparative results of these business segments (in thousands):

	Three Months Ended March 31,
	2013		2012
Real Estate Ownership (a)
Revenues	$	83,838	$	22,550
Operating expenses		(47,686)		(13,457)
Interest expense		(26,906)		(7,280)
Other, net (b)		9,604		14,138
Provision for income taxes		(1,149)		(1,073)
Income from continuing operations attributable to W. P. Carey	$	17,701	$	14,878
Investment Management
Revenues (c)	$	29,548	$	45,764
Operating expenses (c)		(35,296)		(43,223)
Other, net (d)		855		1,278
Benefit from (provision for) income taxes		2,382		(622)
(Loss) income from continuing operations attributable to W. P. Carey	$	(2,511)	$	3,197
Total Company
Revenues (c)	$	113,386	$	68,314
Operating expenses (c)		(82,982)		(56,680)
Interest expense		(26,906)		(7,280)
Other, net (b) (d)		10,459		15,416
Benefit from (provision for) income taxes		1,233		(1,695)
Income from continuing operations attributable to W. P. Carey	$	15,190	$	18,075

	Total Long-Lived Assets at				Total Assets at
	March 31, 2013		December 31, 2012		March 31, 2013		December 31, 2012
Real Estate Ownership:
Net investments in real estate	$	3,250,565	$	3,239,755
Goodwill		264,867		265,525
In-place lease, net		468,132		447,278
Above-market rent, net		267,845		279,885
Other intangible assets, net		4,704		4,550
Total		4,256,113		4,236,993	$	4,340,656	$	4,484,821
Investment Management:
Goodwill		63,607		63,607
Other intangible assets, net		5,780		5,651
Total		69,387		69,258		268,958		124,221
Total Company	$	4,325,500	$	4,306,251	$	4,609,614	$	4,609,042

__________

• Included within the Real Estate Ownership segment is our total investment in shares of CPA®:16 – Global, which representedapproximately6.7% of our total assets at March 31, 2013 (Note6).
• Includes Other interest income, Net income from equity investments in real estate and the Managed REITs, Other income and (expenses), and Net income attributable to noncontrolling interests.
• Included in revenues and operating expenses are reimbursable costs from affiliates totaling $12.0 million and $18.7 million for thethree months endedMarch 31, 2013 and 2012, respectively.
• Includes Other interest income, Other income and (expenses), Net (income) loss attributable to noncontrolling interests and Net loss attributable to redeemable noncontrolling interest.

At March 31, 2013, our international investments within our Real Estate Ownership segment were comprised of investments inFrance, Poland, Germany, Spain, Belgium, Finland, Netherlands and the United Kingdom. The following tables present information about these investments (in thousands):

	Three Months Ended March 31,
	2013		2012
Lease revenues	$	20,701	$	2,563
Income from equity investments in real estate		1,081		1,539
	$	21,782	$	4,102

	March 31, 2013		December 31, 2012
Long-lived assets	$	839,481	$	875,796

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Equity Investment in Real Estate and the Managed REITs (Tables)

3 Months Ended

Mar. 31, 2013

Equity Investments in Real Estate and the Managed REITs

Schedule Of Income From Equity Investment

		Three Months Ended March 31,
		2013		2012
Equity earnings from equity investments in the Managed REITs		$	22	$	1,848
Other-than-temporary impairment charges on our special member interest
	in CPA®:16 – Global operating partnership		(2,684)		(298)
Distributions of Available Cash (Note 3)			7,891		6,974
Deferred revenue earned (Note 3)			2,123		2,123
	Equity in net income from the Managed REITs		7,352		10,647
Equity in net earnings from other equity investments			3,304		3,339
	Total net income from equity investments in real estate and the Managed REITs	$	10,656	$	13,986

Carrying Amount Of Investment In Funds

		% of Outstanding Shares Owned at		Carrying Amount of Investment at
Fund		March 31, 2013	December 31, 2012	March 31, 2013		(a)	December 31, 2012
CPA®:16 – Global	(b)	18.456%	18.330%	$	294,339		$	296,301
CPA®:16 – Global operating partnership	(c)	0.015%	0.015%		14,220			17,140
CPA®:17 – Global	(d)	1.429%	1.290%		43,368			38,977
CPA®:17 – Global operating partnership	(e)	0.015%	0.015%		-			-
CWI		0.447%	0.400%		1,147			774
CWI operating partnership		0.015%	0.015%		(47)			(47)
				$	353,027		$	353,145

Schedule Of Financial Information Of Investment

	March 31, 2013		December 31, 2012
Real estate, net	$	6,193,018	$	6,049,926
Other assets		2,025,509		2,002,620
Total assets		8,218,527		8,052,546
Debt		(3,676,503)		(3,509,394)
Accounts payable, accrued expenses and other liabilities		(456,211)		(450,362)
Total liabilities		(4,132,714)		(3,959,756)
Redeemable noncontrolling interests		(21,094)		(21,747)
Noncontrolling interests		(167,140)		(170,140)
Stockholders’ equity	$	3,897,579	$	3,900,903

		Three Months Ended March 31,
		2013		2012
Revenues		$	178,685	$	212,890
Expenses			(171,253)		(175,440)
Net income from continuing operations		$	7,432	$	37,450
Net income attributable to the Managed REITs	(a) (b)	$	10,352	$	33,197

Ownership Interests and Carrying Values in Equity Investments

		Ownership Interest	Carrying Value at
Lessee		at March 31, 2013	March 31, 2013		December 31, 2012
Schuler A.G.	(a) (b) (d)	67%	$	62,564	$	62,006
Hellweg Die Profi-Baumärkte GmbH & Co. KG (Hellweg 2)	(a) (e)	40%		40,236		42,387
Advanced Micro Devices	(c) (d)	33%		24,027		23,667
The New York Times Company	(e)	18%		20,836		20,584
C1000 Logistiek Vastgoed B.V.	(a) (c) (f)	15%		13,824		14,929
Del Monte Corporation	(c) (d)	50%		7,969		8,318
U. S. Airways Group, Inc.	(c)	75%		7,928		7,995
The Talaria Company (Hinckley)	(d)	30%		7,842		7,702
The Upper Deck Company	(d)	50%		7,187		7,198
Waldaschaff Automotive GmbH and Wagon Automotive Nagold GmbH	(a) (f)	33%		6,173		6,323
Builders FirstSource, Inc.	(d)	40%		5,097		5,138
PetSmart, Inc.	(d)	30%		3,825		3,808
Consolidated Systems, Inc.	(c) (d)	60%		3,249		3,278
Wanbishi Archives Co. Ltd.	(a) (f) (g) (h)	3%		484		(736)
SaarOTEC	(a) (d) (h)	50%		(176)		(116)
			$	211,065	$	212,481

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Equity Investment in Real Estate and the Managed REITs (Details 4) (Managed REITs, USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Managed REITs
Equity Method Investment Summarized Financial Information Income Statement
Revenues	$ 178,685	$ 212,890
Expenses	(171,253)	(175,440)
Net Income from continuing operations	7,432	37,450
Net income attributable to the equity investments in real estate and REITs	$ 10,352	$ 33,197

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Net Investments in Properties (Narratives) (Details) (USD $)	3 Months Ended
	Mar. 31, 2013 property	Mar. 31, 2012	Dec. 31, 2012
Real Estate Investment Property At Cost
Foreign Currency Exchange Rate	$ 1.2821		$ 1.3218
Foreign currency exchange rate impact	15,300,000
Increase decrease in foreign currency exchange rate	(3.00%)
Reclassification from direct financing lease	5,600,000
Investments in real estate
Number of real estate properties	422
Payments to acquire real estate	71,131,000
Proceeds from mortgage financing	99,000,000
Asset Impairment Charges	3,279,000	5,724,000
Self storage
Investments in real estate
Number of real estate properties	21
Hotel
Investments in real estate
Number of real estate properties	1
Asset Impairment Charges	1,100,000
Domestic
Investments in real estate
Number of real estate properties	1
Payments to acquire real estate	72,400,000
Net lease intangibles recorded	13,300,000
Proceeds from mortgage financing	36,500,000
Proceeds from escrow	$ 25,300,000

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Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Consolidated Statements of Comprehensive Income
Net Income	$ 15,839	$ 11,669
Other Comprehensive (Loss) Income:
Foreign currency translation adjustments	(9,752)	2,518
Realized and unrealized gain on derivative instrument	3,175	356
Change in unrealized depreciation on marketable securities	0	(3)
Change in other comprehensive (loss) income	(6,577)	2,871
Comprehensive Income	9,262	14,540
Amounts Attributable to Noncontrolling Interests
Net (income) loss attributable to non controlling interests	(1,708)	578
Foreign currency translation adjustments	1,789	(331)
Comprehensive loss attributable to noncontrolling interests	81	247
Amounts Attributable to Redeemable Noncontrolling Interest
Add: Net loss attributable to redeemable noncontrolling interest	50	43
Foreign currency translation adjustments	23	(9)
Comprehensive income attributable to redeemable noncontrolling interest	73	34
Comprehensive Income Attributable to W. P. Carey	$ 9,416	$ 14,821

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Agreements and Transactions with Related Parties

3 Months Ended

Mar. 31, 2013

Agreements and Transactions with Related Parties

Agreements and Transactions with Related Parties

Note3.Agreements and Transactions with Related Parties

Advisory Agreements with the Managed REITs

We have advisory agreements with each of the Managed REITs pursuant to which we earn fees and are entitled to receive cash distributions. These agreements are scheduled to expire on September 30, 2013 unless otherwise renewed pursuant to their terms.The following table presents a summary of revenue earned and/or cash received from the Managed REITs included in the consolidated statements of income (in thousands):

	Three Months Ended March 31,
	2013		2012
Asset management revenue	$	10,015	$	15,602
Structuring revenue		6,342		7,638
Dealer manager fees		1,223		3,787
Reimbursed costs from affiliates		11,968		18,737
Distributions of Available Cash		7,891		6,974
Deferred revenue earned		2,123		2,123
	$	39,562	$	54,861

	Three Months Ended March 31,
	2013		2012
CPA®:15	$	-	$	7,368
CPA®:16 – Global		13,924		13,124
CPA®:17 – Global		14,756		32,983
CWI		10,860		1,146
Other		22		240
	$	39,562	$	54,861

The following table presents a summary of Due from affiliates (in thousands):

	March 31, 2013		December 31, 2012
Deferred acquisition fees receivable	$	21,530	$	28,655
Reimbursable costs		5,640		1,457
Organization and offering costs		5,066		4,920
Accounts receivable		2,371		181
Asset management fee receivable		18		789
	$	34,625	$	36,002

The following table presents a summary of amounts due to affiliates, which are included in Accounts payable, accrued expenses and other liabilities in the consolidated balance sheet (in thousands):

	March 31, 2013		December 31, 2012
Due to the Estate	$	40,000	$	-
Due to other affiliates		673		673
	$	40,673	$	673

Asset Management Revenue

We earn asset management revenue from each Managed REIT, which is based on average invested assets and is calculated according to the advisory agreement for each Managed REIT. For CPA®:15 prior to the Merger, this revenue generally totaled 1% per annum, with a portion of this revenue, or 0.5%, contingent upon the achievement of specific performance criteria. For CPA®:16 – Global, we earn asset management revenue of 0.5% of average invested assets. For CPA®:17 – Global, we earn asset management revenue ranging from 0.5% of average market value for long-term net leases and certain other types of real estate investments up to 1.75% of average equity value for certain types of securities. For CWI, we earn asset management revenue of 0.5% of the average market value of lodging-related investments. We also receive up to 10% of distributions of Available Cash, as defined in the respective advisory agreements, from the operating partnerships of each of the Managed REITs.

Under the terms of the advisory agreements, we may elect to receive cash or shares of stock for asset management revenue due from each Managed REIT. In 2013,we elected to receive all asset management revenue from each Managed REIT in its respectiveshares. For 2012, we elected to receive all asset management revenue from CPA®:15 prior to the Merger in cash, 50% of asset management revenue from CPA®:16 – Globalin its shares with the remaining 50% payable in cash and all asset management revenue from CPA®:17 – Global and CWI in their respective shares.

Structuring Revenue

Under the terms of the advisory agreements, we earnrevenue in connection with structuring and negotiating investments and related financing for the Managed REITs, which we call acquisition revenue. We may receive acquisition revenue of 4.5% of the total aggregate cost of long-term net lease investments made by each CPA®REIT. A portion of this revenue (generally 2.5%) is paid when the transaction is completed, while the remainder (generally 2%) is payable in annual installments ranging from three to eight years, provided the relevant CPA®REIT meets its performance criterion. For certain types of non-long term net lease investments acquired on behalf of CPA®:17 – Global, initial acquisition revenue may range from 0% to 1.75% of the equity invested plus the related acquisition revenue, with no deferred acquisition revenue being earned. For CWI, we earn initial acquisition revenue of 2.5% of the total investment cost of the properties acquired and loans originated by us not to exceed 6% of the aggregate contract purchase price of all investments and loans with no deferred acquisition revenue being earned. We may also be entitled, subject to theapproval by the boards of directors of certain Managed REITs, to fees for structuring loan refinancings of up to 1% of the principal amount. This loan refinancing revenue, together with the acquisition revenue, is referred to as structuring revenue.

Unpaid transaction fees, including accrued interest, are included in Due from affiliates in the consolidated financial statements. Unpaid transaction fees bear interest at annual rates ranging from 5% to 7%.

Reimbursed Costs from Affiliates and Dealer Manager Fees

The Managed REITs reimburse us for certain costs, primarily broker/dealer commissions paid on behalf of the Managed REITs and marketing and personnel costs. Since October 1, 2012, when advisory agreementswith the CPA® REITs were amended, personnel costs are allocated based on the revenues of each of the CPA®REITs rather than the method utilized before that date, which involvedan allocation of time charges incurred by our personnel for each of the CPA®REITs. In addition, we earned a selling commission of up to $0.65 per share sold and a dealer manager fee of up to $0.35 per share sold from CPA®:17 – Global through its public offering, which was terminated in January 2013. We also receive a selling commission of up to $0.70 per share sold and a dealer manager fee of up to $0.30 per share sold from CWI. We re-allow all or a portion of the dealer manager fees to selected dealers in the offerings. Dealer manager fees that are not re-allowed are classified as Dealer manager fees.

Pursuant to its advisory agreement, CWI is obligated to reimburse us for all organization costs and a portion of offering costs incurred in connection with its offering, up to a maximum amount (excluding selling commissions and the dealer manager fee) of 2% of the gross proceeds of its offering and distribution reinvestment plan. Through March 31, 2013, we have incurred organization and offering costs on behalf of CWI of approximately $7.9 million. However, at March 31, 2013,CWI was only obligated to reimburse us $4.6 million of these costs because of the 2% limitation described above, and $3.5 million had been reimbursed as of that date.

Distributions of Available Cash and Deferred Revenue Earned

We receive distributions of our proportionate share of earnings up to 10% of the Available Cash fromthe Managed REITs, as defined in the respective advisory agreements, from their operating partnerships. In connection with the merger in the second quarter of 2011 between Corporate Property Associates 14 Incorporated (“CPA®:14”) and CPA®:16 – Global, we acquired a special member interest in CPA®:16 – Global's operating partnership. We initially recorded this special member interest at its fair value, which is amortized into earnings over the expected period of performance considering the estimated life of the entity. Cash distributions of our proportionate share of earnings from the CPA®:16 – Global and CPA®:17 – Global operating partnerships as well as deferred revenue earned from our special member interest in CPA®:16 – Global's operating partnership are recorded as Income from equity investments in real estate and the Managed REITs within the Real Estate Ownership segment. We have not yet earned or received any distributions of our proportionate share of earnings from CWI's operating partnership because CWI has not yet generated Available Cash.

Other Transactions with Affiliates

Transactions with Estate of Wm. Polk Carey

As discussed in the 2012 Annual Report, we entered into a share purchase agreement with the Estateof Wm. Polk Carey and its affiliated entities (collectively, the “Estate”)pursuant to which we agreed to repurchase up to an aggregate amount of $85.0 million of our common stock beneficially owned by the Estate, in three transactions between August 6, 2012 and March 31, 2013. As of December 31, 2012, we completed two transactions totaling $45.0 million. On March 28, 2013, we received an irrevocable notice (the “Notice”) from the Estate to exercise the final sale option. Accordingly, as the Notice resulted in a fixed and determinable obligation at March 31, 2013,we reclassified $40.0 million from Redeemable securities – related party to Accounts payable, accrued expenses and other liabilities. On April 4, 2013, we repurchased 616,971 shares of our common stock for $40.0 million from the Estate at a price of $64.83 per share.

The following table presents a reconciliation of our Redeemable securities – related party (in thousands):

	Three Months Ended
	March 31, 2013
Balance - beginning of period	$	40,000
Reclassification to a liability upon receipt of notice		(40,000)
Balance - end of period	$	-

Merger with CPA®:15

On September 28, 2012, CPA®:15 merged with and into us with CPA®:15 surviving as an indirect, wholly-owned subsidiary. In the Merger, we acquired CPA®:15's portfolio, which was comprised of full or partial ownership in 305 properties, substantially all of which were triple-net leased to 76 tenants, and totaled approximately 27.0 million square feet, with an occupancy rate of approximately 99%.

We accounted for the Merger as a business combination under the acquisition method of accounting. The purchase price was allocated to the assets acquired and liabilities assumed, based upon their fair values. The fair values of the lease intangibles acquired were measured in a manner consistent with our purchase price allocation policy described in the 2012 Annual Report.

Other

We own interests in entities ranging from 3% to 95%, as well as jointly-controlled tenancy-in-common interests in properties, with the remaining interests generally held by affiliates, and own common stock in each of the Managed REITs. We consolidate certain of these investments and account for the remainder under the equity method of accounting.

Family members of one of our directors have an ownership interest in certain companies that own noncontrolling interests in one of our French majority-owned subsidiaries. These ownership interests are subject to substantially the same terms as all other ownership interests in the subsidiary companies.

In January 2013, our board of directors approved loans to CWI up to $50.0 million to be made at our discretion.

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Fair Value Measurements (Details 2) (Nonrecurring, Level 3, USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Impairment Disclosure
Total fair value measurements	$ 21,382	$ 54,507
Impairment charges on properties	5,963	6,022
Continuing Operations:
Impairment Disclosure
Total fair value measurements	21,382	27,460
Impairment charges on properties	5,963	298
Discontinued Operations:
Impairment Disclosure
Total fair value measurements		27,047
Impairment charges on properties		5,724
Real Estate | Continuing Operations:
Impairment Disclosure
Total fair value measurements	3,350
Impairment charges on properties	2,208
Operating Real Estate | Continuing Operations:
Impairment Disclosure
Total fair value measurements	3,812
Impairment charges on properties	1,071
Equity Investments In Real Estate | Continuing Operations:
Impairment Disclosure
Total fair value measurements	14,220	27,460
Impairment charges on properties	$ 2,684	$ 298

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Debt (Details 1) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013
Long-term Debt, by Maturity
2013 (remainder)	$ 83,850
2014	672,288
2015	230,869
2016	87,902
2017	126,980
Thereafter through 2026	805,720
Long Term Debt Before Unamortized Discount	2,007,609
Unamortized discount	(14,274)
Total scheduled debt principal payments	1,993,335
Revolving Credit Facility
Long-term Debt, by Maturity
2014	123,000
Term Loan Facility
Long-term Debt, by Maturity
2014	$ 175,000

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Intangible Assets and Liabilities and Goodwill (Tables)

3 Months Ended

Mar. 31, 2013

Goodwill And Intangible Assets Disclosure

Schedule Of Acquired Finite Lived Intangible Assets By Major Class

	Weighted-Average
	Life			Amount
Amortizable Intangible Assets
In-place lease		10.0	$	41,963
Amortizable Intangible Liabilities
Below-market rent		20.0	$	(28,646)

Schedule Of Goodwill

		Real Estate		Investment
		Ownership		Management		Total
Balance - beginning of period		$	265,525	$	63,607	$	329,132
Allocation of goodwill to dispositions of properties within the reporting unit	(a)		(658)		-		(658)
Balance - end of period		$	264,867	$	63,607	$	328,474

Schedule Of Intangible Assets And Goodwill

		March 31, 2013						December 31, 2012
		Gross				Net		Gross				Net
		Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
		Amount		Amortization		Amount		Amount		Amortization		Amount
Amortizable Intangible Assets
Management contracts		$	32,765	$	(31,561)	$	1,204	$	32,765	$	(31,283)	$	1,482
Software license			600		-		600		-		-		-
			33,365		(31,561)		1,804		32,765		(31,283)		1,482
Lease Intangibles:
In-place lease			509,394		(41,262)		468,132		474,629		(27,351)		447,278
Tenant relationship			8,143		(3,438)		4,705		8,149		(3,406)		4,743
Above-market rent			290,676		(22,831)		267,845		293,627		(13,742)		279,885
			808,213		(67,531)		740,682		776,405		(44,499)		731,906
Unamortizable Goodwill and Indefinite-Lived Intangible Assets
Goodwill			328,474		-		328,474		329,132		-		329,132
Trade name			3,975		-		3,975		3,975		-		3,975
			332,449		-		332,449		333,107		-		333,107
		$	1,174,027	$	(99,092)	$	1,074,935	$	1,142,277	$	(75,782)	$	1,066,495
Amortizable Intangible Liabilities
Below-market rent		$	(114,497)	$	5,399	$	(109,098)	$	(86,171)	$	3,227	$	(82,944)
Above-market ground lease			(6,896)		205		(6,691)		(6,896)		103		(6,793)
			(121,393)		5,604		(115,789)		(93,067)		3,330		(89,737)
Unamortizable Intangible Liabilities
Below-market purchase option	(a)		(16,711)		-		(16,711)		(16,711)		-		(16,711)
Total Intangible Liabilities		$	(138,104)	$	5,604	$	(132,500)	$	(109,778)	$	3,330	$	(106,448)

Schedule Of Finite Lived Intangible Assets Future Amortization Expense

Years Ending December 31,	Total
2013 (remainder)	$	64,361
2014		81,140
2015		73,693
2016		71,759
2017		68,451
Thereafter		267,293
Total	$	626,697

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Stock-Based Compensation and Equity (Details 4) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance- beginning of period	$ (4,649)	$ (8,507)
Other comprehensive income before reclassifications	(5,255)	2,121
Amounts reclassified from accumulated other comprehensive income
Interest expense	434	335
Other income and (expense)	(47)
Net income from equity investments in real estate and the Managed REITs	103	75
Total	490	410
Net current period other comprehensive income (loss)	(4,765)	2,531
Balance- end of period	(9,414)	(5,976)
Gains and Losses on Derivative Instruments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance- beginning of period	(7,508)	(5,246)
Other comprehensive income before reclassifications	2,685	(54)
Amounts reclassified from accumulated other comprehensive income
Interest expense	434	335
Other income and (expense)	(47)
Net income from equity investments in real estate and the Managed REITs	103	75
Total	490	410
Net current period other comprehensive income (loss)	3,175	356
Balance- end of period	(4,333)	(4,890)
Foreign Currency Contracts
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance- beginning of period	2,828	(3,299)
Other comprehensive income before reclassifications	(7,940)	2,178
Amounts reclassified from accumulated other comprehensive income
Net current period other comprehensive income (loss)	(7,940)	2,178
Balance- end of period	(5,112)	(1,121)
Unrealized Gains and Losses on Marketable Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance- beginning of period	31	38
Other comprehensive income before reclassifications	0	(3)
Amounts reclassified from accumulated other comprehensive income
Interest expense	0
Other income and (expense)	0
Net income from equity investments in real estate and the Managed REITs	0
Total	0
Net current period other comprehensive income (loss)	0	(3)
Balance- end of period	$ 31	$ 35

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Agreements and Transactions of Related Parties (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Asset management fees
Revenue earned and cash received from REITs	$ 39,562	$ 54,861
CPA 15
Asset management fees
Revenue earned and cash received from REITs		7,368
CPA: 16 - Global
Asset management fees
Revenue earned and cash received from REITs	13,924	13,124
CPA: 17 - Global
Asset management fees
Revenue earned and cash received from REITs	14,756	32,983
CWI
Asset management fees
Revenue earned and cash received from REITs	10,860	1,146
Other
Asset management fees
Revenue earned and cash received from REITs	$ 22	$ 240

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Discontinued Operations

3 Months Ended

Mar. 31, 2013

Discontinued Operations

Discontinued Operations

Note13. Discontinued Operations

From time to time, we may dispose of a propertywhen it is vacant as a result of tenants vacating space, tenants electing not to renew their leases, tenant insolvency, or lease rejection in the bankruptcy process. In such cases, we assess whether we can obtain the highest value from the property by selling it, as opposed to re-leasing it. When it is appropriate to do so, upon the evaluation of the disposition of long-lived assets, we classify the property as an asset held for sale on our consolidated balance sheet and the current and prior period results of operations of the property are reclassified as discontinued operations.

The results of operations for properties that are held for sale or have been sold and with which we have no continuing involvement are reflected in the consolidated financial statements as discontinued operations and are summarized as follows (in thousands, net of tax):

		Three Months Ended March 31,
		2013		2012
Revenues		$	168	$	1,820
Expenses			(316)		(1,700)
Gain on extinguishment of debt			70		-
Loss on sale of real estate			(931)		(181)
Impairment charges			-		(5,724)
	Loss from discontinued operations	$	(1,009)	$	(5,785)

2013— During the three months ended March 31, 2013, we sold two domestic properties, whichwe acquired in the Merger,for $11.0million, net of selling costs, and recognized a net loss on these sales of $0.3million, excluding an impairment charge of $0.2 million previously recognized during 2012.We used a portion of the proceeds to repay an outstanding mortgage obligation of $5.7 million and recognized a gain on extinguishment of debt of $0.1 million. In connection with these sales, we wrote off goodwill of $0.7 million related to these properties (Note 7).

In February 2013, we entered into a contract to sell a domestic property for $3.1 million. At March 31, 2013, this property was classified with Assets held for sale in the consolidated balance sheet.

We sold 12 additional properties during 2012 subsequent to first quarter of 2012. The results of operations for these properties are included in Loss from discontinued operations, net of tax in the consolidated financial statements for the three months ended March 31, 2012.

2012 — During the three months ended March 31, 2012, we sold two domestic properties for $2.4 million, net of selling costs, and recognized a net loss on these sales of $0.2 million, excluding impairment charges of $0.8 million previously recognized during 2011.

In January 2012, we entered into an agreement to sell a domestic property. In April 2012, we completed the sale of this property for $13.2 million, net of selling costs. In connection with the sale, we recognized impairment charges totaling $2.4 million during the three months ended March 31, 2012 and $5.8 million during 2011.