W. P. Carey Announces Fourth Quarter and Year-End 2013 Financial Results
W. P. Carey Inc. (NYSE:
WPC), a global net-lease real estate investment trust (“REIT”), today reported financial results for the fourth quarter and full year ended December 31, 2013.
During 2013, the Company:
Generated Funds from operations—as adjusted (“AFFO”) of $1.12 per diluted share and $4.22 per diluted share for the fourth quarter and full year, respectively
Acquired seven properties for a total of $347.1 million
Structured $1.4 billion of investments on behalf of the Managed REITs
Raised its annualized dividend rate to $3.48 per share in the fourth quarter, an increase of 31.8% over the fourth quarter of 2012 and the Company’s 51st consecutive quarterly increase
Declared a special distribution of $0.11 per share in the fourth quarter
Generated a total shareholder return of approximately 23.0% for the full year
Subsequent to year-end, the Company:
Completed its merger with CPA®:16 – Global, valued at approximately $4.0 billion
Received investment grade corporate ratings of BBB and Baa2 from Standard & Poor’s Ratings Services and Moody’s Investors Service, respectively
Closed on a new credit agreement that increased the capacity of its unsecured line of credit from $625.0 million to $1.25 billion, comprised of a $1.0 billion revolving line of credit and a $250.0 million term loan
QUARTERLY AND FULL YEAR RESULTS
AFFO for the fourth quarter of 2013 was $78.1 million, or $1.12 per diluted share, compared to $78.8 million, or $1.13 per diluted share, for the fourth quarter of 2012. For the 2013 full year, AFFO was $294.2 million, or $4.22 per diluted share, compared to $180.6 million, or $3.76 per diluted share, for the 2012 full year, an increase of $113.6 million and $0.46 per diluted share, respectively, due primarily to income from properties acquired in the Company’s merger with CPA®:15, which closed on September 28, 2012 (the “CPA®:15 Merger”), partially offset by the cessation of asset management revenue received from CPA®:15 upon completion of the CPA®:15 Merger. Per share data for the 2013 periods also reflects the issuance of approximately 28.2 million shares in connection with the CPA®:15 Merger to stockholders of CPA®:15. Further information concerning AFFO, a non-GAAP supplemental performance metric, is presented in the accompanying tables and related notes.
Total revenues net of reimbursed expenses for the fourth quarter of 2013 were $116.1 million, compared to $121.7 million for the fourth quarter of 2012, a decline of $5.6 million due primarily to lower acquisition volume in the fourth quarter of 2013. For the 2013 full year, total revenues net of reimbursed expenses were $416.3 million, compared to $254.1 million for 2012, an increase of $162.2 million, due primarily to income from properties acquired in the CPA®:15 Merger and newly acquired properties in the fourth quarter of 2012 and full year 2013. Reimbursed expenses are excluded from total revenues because they have no impact on net income.
Net Income for the fourth quarter of 2013 was $23.0 million, compared to $15.5 million for the same period in 2012. Net Income for the year ended December 31, 2013 was $98.9 million, compared to $62.1 million for the prior year.
For the fourth quarter and full year ended December 31, 2013, the Company received approximately $17.6 million and $62.4 million, respectively, in cash distributions from its equity ownership in the Managed REITs. Included in these amounts were $10.2 million and $34.1 million, respectively, in Available Cash distributions related to the Company’s special general partnership interests in the Managed REITs.
W. P. Carey Inc. is a leading global net-lease REIT that provides long-term sale-leaseback and build-to-suit financing solutions for companies worldwide. It also acts as the manager to a series of non-traded REITs. The Company’s owned and managed diversified global investment portfolio had a combined enterprise value of approximately $15 billion at December 31, 2013. Its corporate finance-focused credit and real estate underwriting process is a constant that has been successfully leveraged across a wide variety of industries and property types. Furthermore, its portfolio of long-term leases with creditworthy tenants has an established history of generating stable cash flows, enabling it to deliver consistent and rising dividend income to investors for over four decades. www.wpcarey.com