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8-K - FORM 8-K - Corporate Property Associates 17 - Global INC | c98336e8vk.htm |
Exhibit 99.1
Corporate Property Associates 17 Global Incorporated
Supplemental Information
Supplemental Information
As of December 31, 2009
As used in this supplemental package, the terms the Company, we, us and our include
Corporate Property Associates 17 Global Incorporated (CPA®:17), its consolidated subsidiaries
and predecessors, unless otherwise indicated.
Important Note Regarding Non-GAAP Financial Measures
This supplemental package includes non-GAAP financial measures, including funds from operations
as adjusted (AFFO) and adjusted cash flow from operating activities. A description of these
non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures are
provided in this supplemental package.
Forward-Looking Statements
This supplemental package contains forward-looking statements within the meaning of the Federal
securities laws. 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 forward-looking statements contained
herein is included in our filings with the SEC, including but not limited our Form 10-K for the
year ended December 31, 2009. We do not undertake to revise or update any forward-looking
statements.
Executive Offices
|
Investor Relations | |
50 Rockefeller Plaza
|
Susan C. Hyde | |
New York, NY 10020
|
Managing Director & Director of Investor Relations | |
Tel: 1-800-WPCAREY or (212) 492-1100
|
W. P. Carey & Co. LLC | |
Fax: (212) 492-8922
|
Phone: (212) 492-1151 | |
Web Site Address: www.CPA17GLOBAL.com |
Corporate Property Associates 17 Global Incorporated
Reconciliation of Net Loss to Funds From Operations as adjusted (AFFO) (Unaudited)
(in thousands, except share and per share amounts)
Reconciliation of Net Loss to Funds From Operations as adjusted (AFFO) (Unaudited)
(in thousands, except share and per share amounts)
Three months ended | Year ended | |||||||
December 31, 2009 | December 31, 2009 | |||||||
Net loss attributable to CPA®:17 Global shareholders |
$ | (16,994 | ) | $ | (7,701 | ) | ||
Depreciation, amortization, and other non-cash charges |
1,670 | 5,372 | ||||||
Straight-line and other rent adjustments |
(1,162 | ) | (3,562 | ) | ||||
Impairment charges |
23,904 | 23,904 | ||||||
AFFO adjustment to earnings from equity investments |
1,133 | 2,076 | ||||||
AFFO adjustment to share of earnings of noncontrolling interests |
23 | 115 | ||||||
AFFO |
$ | 8,574 | $ | 20,204 | ||||
AFFO per share (a) |
$ | 0.13 | $ | 0.42 | ||||
Weighted average shares outstanding |
72,894,294 | 54,376,664 | ||||||
(a) Numerator for AFFO per share calculation: |
||||||||
AFFO |
$ | 8,574 | $ | 20,204 | ||||
Add: Issuance of shares to an affiliate in satisfaction of fees due |
746 | 2,477 | ||||||
AFFO numerator in determination of AFFO per share |
$ | 9,320 | $ | 22,681 | ||||
We were formed in February 2007 and commenced our initial public offering in November 2007. We did
not generate significant revenue or net income (loss) for the period from our inception through
December 31, 2008. Accordingly, our current year results are not comparable to our results in the
prior years. Therefore, we do not believe that the results for the comparable periods of the prior
years are meaningful to an investor; and they are not presented in this supplemental information.
Non-GAAP Financial Disclosure
Funds from operations (FFO) is a non-GAAP financial measure that is commonly used by investors and
analysts in evaluating real estate companies. Although the National Association of Real Estate
Investment Trusts (NAREIT) has published a definition of FFO, real estate companies often modify
this definition as they seek to provide financial measures that meaningfully reflect their
operations. FFO or funds from operations as adjusted (AFFO) should not be considered as an
alternative to net income as an indication of a companys operating performance or to cash flow
from operating activities as a measure of its liquidity and should be used in conjunction with GAAP
net income. FFO or AFFO disclosed by other REITs may not be comparable to our AFFO calculation.
NAREITs definition of FFO adjusts GAAP net income to exclude depreciation and gains/losses from
the sales of properties and adjusts for FFO applicable to unconsolidated partnerships and joint
ventures. We calculate AFFO in accordance with this definition and then include other adjustments
to GAAP net income to adjust for certain non-cash charges such as amortization of intangibles,
straight-line rents, stock compensation, impairment charges on real estate and unrealized foreign
currency exchange gains and
losses. 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 that have
no impact on cash flows, and we therefore use AFFO as one measure of our operating performance when
we formulate corporate goals and evaluate the effectiveness of our strategies. As a result, we
believe that AFFO is a useful supplemental measure for investors to consider because it will help
them to better understand and measure the performance of our business over time without the
potentially distorting impact of these short-term fluctuations.
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Corporate Property Associates 17 Global Incorporated
Adjusted Cash Flow from Operating Activities (Unaudited)
(in thousands, except share and per share amounts)
Adjusted Cash Flow from Operating Activities (Unaudited)
(in thousands, except share and per share amounts)
Year ended | ||||
December 31, 2009 | ||||
Cash flow from operating activities |
$ | 32,240 | ||
Adjustments: |
||||
Distributions received from equity investments in real estate in excess of equity income,
net (a) |
2,265 | |||
Distributions paid to noncontrolling interests, net (b) |
(11,474 | ) | ||
Changes in working capital (c) |
(2,745 | ) | ||
Adjusted cash flow from operating activities |
$ | 20,286 | ||
Adjusted cash flow per share |
$ | 0.37 | ||
Distributions declared per share |
$ | 0.6324 | ||
Payout ratio (distributions per share/adjusted cash flow per share) |
171 | % | ||
Weighted average shares outstanding |
54,376,664 | |||
(a) | To the extent we receive distributions in excess of equity income that we recognize, we include such amounts in our evaluation of cash flow from core operations. | |
(b) | Represents noncontrolling interests share of distributions made by ventures that we
consolidate in our financial statements. |
|
(c) | Timing differences arising from the payment of certain liabilities in a period other than that in which the expense is recognized in determining net income may distort the actual cash flow that our core operations generate. We adjust our GAAP cash flow from operating activities to record such amounts in the period in which the liability was actually incurred. |
We were formed in February 2007 and commenced our initial public offering in November 2007. We did
not generate significant cash flow from operating activities for the period from our inception
through December 31, 2008. Accordingly, our current year results are not comparable to our results
in the prior years. Therefore, we do not believe that the results for the comparable period of the
prior years are meaningful to an investor; and they are not presented in this supplemental
information.
Non-GAAP Financial Disclosure
Adjusted cash flow from operating activities refers to our cash provided by operating activities,
as determined in accordance with GAAP, adjusted primarily to reflect timing differences between the
period an expense is incurred and paid, to add cash distributions that we receive from our
investments in unconsolidated real estate joint ventures in excess of our equity investment in the
joint ventures, and to subtract cash distributions that we make to our noncontrolling partners in
real estate joint ventures that we consolidate. We hold a number of interests in real estate joint
ventures, and we believe that adjusting our GAAP cash provided by operating activities to reflect
these actual cash receipts and cash payments may give investors a more accurate picture of our
actual cash flow than GAAP cash provided by operating activities alone and that it is a useful
supplemental measure for investors to consider. We also believe that adjusted cash flow from
operating activities is a useful supplemental measure for assessing the cash flow
generated from our core operations, and we use this measure when evaluating distributions to
shareholders. Adjusted cash flow from operating activities should not be considered as an
alternative for cash provided by operating activities computed on a GAAP basis as a measure of our
liquidity. Adjusted cash flow from operating activities may not be comparable to similarly titled
measures of other companies.
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Corporate Property Associates 17 Global Incorporated
Portfolio Diversification as of December 31, 2009 (Unaudited)
Top Ten Tenants by Rent (Pro Rata Basis)
(in thousands)
Portfolio Diversification as of December 31, 2009 (Unaudited)
Top Ten Tenants by Rent (Pro Rata Basis)
(in thousands)
Percentage of Total Annualized | ||||||||
Tenant/Lease Guarantor | Annualized Rent | Rent | ||||||
The New York Times Company |
$ | 13,303 | 25 | % | ||||
LifeTime Fitness, Inc. |
5,771 | 11 | % | |||||
Eroski Sociedad Cooperativa (a) |
4,251 | 8 | % | |||||
US Oncology, Inc. |
3,624 | 7 | % | |||||
Tesco Global Aruhazak Zrt. (a) |
3,540 | 7 | % | |||||
Berry Plastics, LLC |
3,320 | 6 | % | |||||
Actebis Peacock GmbH (a) |
3,017 | 6 | % | |||||
Frontier Spinning Mills, Inc. |
2,754 | 5 | % | |||||
Mori Seiki U.S.A. |
2,703 | 5 | % | |||||
Sabre
Communications Corporation and Cellxion, LLC |
2,563 | 5 | % | |||||
Total |
$ | 44,846 | 85 | % | ||||
Weighted
Average Lease Term for Portfolio: 16.9 years |
(a) | Rent amounts are subject to fluctuations in foreign currency exchange rates. |
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Corporate Property Associates 17 Global Incorporated
Portfolio Diversification as of December 31, 2009 (Unaudited)
by Geography and Property Type (Pro Rata Basis)
(in thousands)
Portfolio Diversification as of December 31, 2009 (Unaudited)
by Geography and Property Type (Pro Rata Basis)
(in thousands)
Region | Annualized Rent | Percent | ||||||
U.S. |
||||||||
East |
$ | 19,452 | 37 | % | ||||
Midwest |
8,003 | 15 | % | |||||
South |
6,187 | 12 | % | |||||
West |
3,073 | 6 | % | |||||
U.S. Total |
36,715 | 70 | % | |||||
International |
||||||||
Germany |
4,904 | 9 | % | |||||
Spain |
4,251 | 8 | % | |||||
Hungary |
3,539 | 7 | % | |||||
United Kingdom |
2,167 | 4 | % | |||||
Poland |
1,197 | 2 | % | |||||
International Total |
16,058 | 30 | % | |||||
Total |
$ | 52,773 | 100 | % | ||||
Portfolio Diversification by Geography
Property Type | Annualized Rent | Percent | ||||||
Office |
$ | 21,351 | 41 | % | ||||
Retail |
11,219 | 21 | % | |||||
Industrial |
10,641 | 20 | % | |||||
Warehouse
/Distribution |
4,937 | 9 | % | |||||
Other Properties
(a) |
4,625 | 9 | % | |||||
Total |
$ | 52,773 | 100 | % | ||||
Portfolio Diversification by Property Type
(a) | Includes revenue from tenants in the following property types: education (4.6%) and transportation (4.1%). |
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Corporate Property Associates 17 Global Incorporated
Portfolio Diversification as of December 31, 2009 (Unaudited)
by Tenant Industry (Pro Rata Basis)
(in thousands)
Portfolio Diversification as of December 31, 2009 (Unaudited)
by Tenant Industry (Pro Rata Basis)
(in thousands)
Annualized | ||||||||
Industry Type (a) | Rent | Percent | ||||||
Media: Printing and Publishing |
$ | 13,303 | 25 | % | ||||
Retail Trade |
8,988 | 17 | % | |||||
Healthcare, Education and Childcare |
6,065 | 12 | % | |||||
Leisure, Amusement, Entertainment |
5,771 | 11 | % | |||||
Electronics |
5,581 | 11 | % | |||||
Chemicals, Plastics, Rubber, and Glass |
3,320 | 6 | % | |||||
Textiles, Leather, and Apparel |
2,754 | 5 | % | |||||
Machine (Manufacturing) |
2,703 | 5 | % | |||||
Transportation Personal |
2,167 | 4 | % | |||||
Automobile |
1,886 | 4 | % | |||||
Mining, Metals, and Primary Metal Industries |
235 | 0 | % | |||||
Total |
$ | 52,773 | 100 | % | ||||
(a) | Based on the Moodys Investors Service, Inc. classification system and information provided by the tenant. |
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