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8-K - FORM 8-K - W. P. Carey Inc.c21040e8vk.htm
EXHIBIT 99.1
(W. P. CAREY LOGO)
W. P. Carey & Co. LLC
Supplemental Operating and Financial Data
As of June 30, 2011
(WPC LOGO)

 

 


 

Important Disclosures About this Supplemental Package
As used in this supplemental package, the terms “W. P. Carey,” “WPC LLC,” “the Company,” “we,” “us” and “our” include W. P. Carey & Co. LLC, its consolidated subsidiaries and predecessors, unless otherwise indicated. “GAAP” means generally accepted accounting principles in the United States. “CPA® REITs” means Corporate Property Associates 15 Incorporated (“CPA®:15”), Corporate Property Associates 16 — Global Incorporated (“CPA®:16 — Global”) and Corporate Property Associates 17 — Global Incorporated (“CPA®:17 — Global”). The “REITs” means the CPA® REITs and Carey Watermark Investors Incorporated (“CWI”). Corporate Property Associates 14 Incorporated (“CPA®:14”) was part of the CPA® REITs until its merger with a subsidiary of CPA®:16 — Global on May 2, 2011 (“CPA®:14/16 Merger”).
Important Note Regarding Non-GAAP Financial Measures
This supplemental package includes non-GAAP financial measures, including earnings before interest, taxes, depreciation and amortization (“EBITDA”), funds from operations — as adjusted (“AFFO”), adjusted cash flow from operating activities and revenue stability analysis. 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 Securities and Exchange Commission, including but not limited to our Annual Report on Form 10-K for the year ended December 31, 2010. We do not undertake to revise or update any forward-looking statements.

 

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W. P. CAREY & CO. LLC
Supplemental Operating and Financial Data
As of June 30, 2011
         
Contents        
Company Overview
    4  
Financial Highlights
    5  
Reconciliation of Net Income to EBITDA
    6  
Reconciliation of Net Income to Funds From Operations — as adjusted (AFFO)
    7  
Adjusted Cash Flow from Operating Activities
    8  
Revenue Stability Analysis
    9  
Portfolio Debt Overview
    10  
Detailed Debt Summary
    11  
2011 Investment Activity
    13  
Portfolio Analysis — Rent Contribution and Historical Occupancy
    15  
Portfolio Diversification Analysis by Property Type
    16  
Portfolio Diversification Analysis by Tenant Industry
    17  
Portfolio Diversification Analysis by Geography
    18  
Portfolio Lease Maturity Analysis
    19  
Consolidated Balance Sheets
    20  
Consolidated Statements of Income
    21  
Consolidated Statements of Cash Flows
    22  
Detailed Property Summary
    23  

 

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W. P. CAREY & CO. LLC
Company Overview
June 30, 2011
         
Key Company Contacts
      Executive Offices
 
       
Wm. Polk Carey
  Chairman of the Board and Director   50 Rockefeller Plaza
Trevor P. Bond
  President, Chief Executive Officer and Director   New York, NY 10020
Thomas E. Zacharias
  Managing Director, Chief Operating Officer   Tel: 1-800-WPCAREY or (212) 492-1100
Mark J. DeCesaris
  Managing Director, Chief Financial Officer   Fax: (212) 492-8922
Susan C. Hyde
  Managing Director, Director of Investor Relations   Web Site Address: www.wpcarey.com
 
       
Banks
       
 
       
Bank of America, N.A.
  Administrative and Documentation Agent    
The Bank of New York Mellon
  Syndication Agent    
JPMorgan Chase Bank, N.A.
  Syndication Agent    
PNC Bank, N.A.
  Syndication Agent    
 
       
Analyst Coverage
       
 
       
Andrew T. DiZio
  Janney Montgomery Scott LLC    
                                         
    Second Quarter     First Quarter     Fourth Quarter     Third Quarter     Second Quarter  
Stock Data (NYSE: WPC)   2011     2011     2010     2010     2010  
High Price
  $ 41.82     $ 38.00     $ 33.97     $ 30.86     $ 31.00  
Low Price
    34.75       29.75       28.83       26.49       26.61  
Closing Price
    40.50       35.70       31.29       28.95       27.64  
 
                                       
Distributions declared per share — annualized
  $ 2.20     $ 2.05     $ 2.04     $ 2.03     $ 2.02  
 
                                       
Distribution yield (annualized distribution / closing stock price)
    5.43 %     5.74 %     6.52 %     7.01 %     7.31 %
 
                                       
Shares outstanding at quarter end
    39,707,156       39,614,250       39,454,847       39,481,027       39,323,929  
 
                                       
Market value of outstanding shares at quarter end (in thousands)
  $ 1,608,140     $ 1,414,229     $ 1,234,542     $ 1,142,976     $ 1,086,913  

 

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W. P. CAREY & CO. LLC
Financial Highlights

(in thousands, except per share amounts)
These financial highlights include non-GAAP financial measures, including EBITDA, 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 is provided on the following pages.
                                                         
    Three months ended     Six months ended June 30,  
    June 30, 2011     March 31, 2011     December 31, 2010     September 30, 2010     June 30, 2010     2011     2010  
EBITDA (a)
                                                       
Investment management
  $ 58,912     $ 21,359     $ 27,561     $ 10,296     $ 19,503     $ 80,271     $ 32,029  
Real estate ownership
    57,673       19,513       14,173       19,837       20,407       77,187       36,593  
 
                                         
Total
  $ 116,585     $ 40,872     $ 41,734     $ 30,133     $ 39,910     $ 157,458     $ 68,622  
 
                                         
 
                                                       
AFFO (a)
                                                       
Investment management
  $ 48,157     $ 20,650     $ 18,194     $ 7,230     $ 15,345     $ 68,807     $ 24,816  
Real estate ownership
    24,611       18,492       18,083       20,377       23,575       43,011       42,170  
 
                                         
Total
  $ 72,768     $ 39,142     $ 36,277     $ 27,607     $ 38,920     $ 111,818     $ 66,986  
 
                                         
 
                                                       
EBITDA Per Share (Diluted) (a)
                                                       
Investment management
  $ 1.46     $ 0.53     $ 0.69     $ 0.26     $ 0.49     $ 2.00     $ 0.81  
Real estate ownership
    1.44       0.49       0.35       0.50       0.52       1.92       0.92  
 
                                         
Total
  $ 2.90     $ 1.02     $ 1.04     $ 0.76     $ 1.01     $ 3.92     $ 1.73  
 
                                         
 
                                                       
AFFO Per Share (Diluted) (a)
                                                       
Investment management
  $ 1.20     $ 0.51     $ 0.45     $ 0.18     $ 0.39     $ 1.71     $ 0.63  
Real estate ownership
    0.61       0.46       0.45       0.51       0.59       1.07       1.06  
 
                                         
Total
  $ 1.81     $ 0.97     $ 0.90     $ 0.69     $ 0.98     $ 2.78     $ 1.69  
 
                                         
                 
    Six months ended June 30,  
    2011     2010  
Adjusted Cash Flow From Operating Activities
               
Adjusted cash flow
  $ 55,917     $ 48,193  
 
           
Adjusted cash flow per share (diluted)
  $ 1.39     $ 1.22  
 
           
 
               
Distributions declared per share
  $ 1.062     $ 1.010  
 
           
Payout ratio (distributions per share/adjusted cash flow per share)
    76 %     83 %
 
           
     
(a)   Effective January 1, 2011, we include our equity investments in the REITs in our real estate ownership segment. The equity income (loss) from the REITs that is now included in our real estate ownership segment represents our proportionate share of the revenue less expenses of the properties held by the REITs. This treatment is consistent with that of our directly-owned properties. Results for the three months ended December 31, September 30 and June 30, 2010 as well as the six months ended June 30, 2010 have been adjusted to reflect this reclassification.

 

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W. P. CAREY & CO. LLC
Reconciliation of Net Income to EBITDA

(in thousands, except share and per share amounts)
                                                         
    Three months ended     Six months ended June 30,  
    June 30, 2011     March 31, 2011     December 31, 2010     September 30, 2010     June 30, 2010     2011     2010  
Investment Management
                                                       
Net income from investment management attributable to W. P. Carey members (a)
  $ 31,989     $ 13,177     $ 15,731     $ 6,095     $ 11,968     $ 45,166     $ 19,748  
Adjustments:
                                                       
Provision for income taxes
    26,056       7,380       10,667       3,045       6,373       33,436       9,948  
Depreciation and amortization
    867       802       1,163       1,156       1,162       1,669       2,333  
 
                                         
EBITDA — investment management
  $ 58,912     $ 21,359     $ 27,561     $ 10,296     $ 19,503     $ 80,271     $ 32,029  
 
                                         
EBITDA per share (diluted)
  $ 1.46     $ 0.53     $ 0.69     $ 0.26     $ 0.49     $ 2.00     $ 0.81  
 
                                         
 
                                                       
Real Estate Ownership
                                                       
Net income from real estate ownership attributable to W. P. Carey members (a)
  $ 47,123     $ 10,166     $ 4,050     $ 10,251     $ 11,464     $ 57,289     $ 18,097  
Adjustments:
                                                       
Interest expense
    5,396       4,440       4,460       4,298       3,765       9,836       7,476  
Provision for income taxes
    (1,296 )     194       915       332       378       (1,102 )     915  
Depreciation and amortization
    6,438       4,648       4,748       4,911       4,581       11,073       9,495  
Reconciling items attributable to discontinued operations
    12       65             45       219       91       610  
 
                                         
EBITDA — real estate ownership
  $ 57,673     $ 19,513     $ 14,173     $ 19,837     $ 20,407     $ 77,187     $ 36,593  
 
                                         
EBITDA per share (diluted)
  $ 1.44     $ 0.49     $ 0.35     $ 0.50     $ 0.52     $ 1.92     $ 0.92  
 
                                         
 
                                                       
Total Company
                                                       
EBITDA
  $ 116,585     $ 40,872     $ 41,734     $ 30,133     $ 39,910     $ 157,458     $ 68,622  
 
                                         
EBITDA per share (diluted)
  $ 2.90     $ 1.02     $ 1.04     $ 0.76     $ 1.01     $ 3.92     $ 1.73  
 
                                         
Diluted weighted average shares outstanding
    40,243,548       40,242,706       40,104,715       39,717,931       39,510,231       40,192,418       39,567,583  
 
                                         
     
(a)   Effective January 1, 2011, we include our equity investments in the REITs in our real estate ownership segment. The equity income (loss) from the REITs that is now included in our real estate ownership segment represents our proportionate share of the revenue less expenses of the properties held by the REITs. This treatment is consistent with that of our directly-owned properties. Results for the three months ended December 31, September 30 and June 30, 2010 as well as the six months ended June 30, 2010 have been adjusted to reflect this reclassification.
Non-GAAP Financial Disclosure
EBITDA as disclosed represents earnings before interest, taxes, depreciation and amortization. We believe that EBITDA is a useful supplemental measure to investors and analysts for assessing the performance of our business segments, although it does not represent net income that is computed in accordance with GAAP, because it removes the impact of our capital structure and asset base from our operating results and because it is helpful when comparing our operating performance to that of companies in our industry without regard to such items, which can vary substantially from company to company. Accordingly, EBITDA should not be considered as an alternative to net income as an indicator of our financial performance. EBITDA may not be comparable to similarly titled measures of other companies. Therefore, we use EBITDA as one measure of our operating performance when we formulate corporate goals, evaluate the effectiveness of our strategies and determine executive compensation.

 

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W. P. CAREY & CO. LLC
Reconciliation of Net Income to Funds from Operations — as Adjusted (AFFO)

(in thousands, except share and per share amounts)
                                                         
    Three months ended     Six months ended June 30,  
    June 30, 2011     March 31, 2011     December 31, 2010     September 30, 2010     June 30, 2010     2011     2010  
Investment Management
                                                       
Net income from investment management attributable to W. P. Carey members (a)
  $ 31,989     $ 13,177     $ 15,731     $ 6,095     $ 11,968     $ 45,166     $ 19,748  
Amortization, deferred taxes and other non-cash charges
    17,583       7,473       2,463       1,135       3,377       25,056       5,068  
AFFO adjustments to earnings from equity investments
    (1,415 )                             (1,415 )      
 
                                         
AFFO — investment management
  $ 48,157     $ 20,650     $ 18,194     $ 7,230     $ 15,345     $ 68,807     $ 24,816  
 
                                         
AFFO per share (diluted)
  $ 1.20     $ 0.51     $ 0.45     $ 0.18     $ 0.39     $ 1.71     $ 0.63  
 
                                         
 
                                                       
Real Estate Ownership
                                                       
Net income from real estate ownership attributable to W. P. Carey members (a)
  $ 47,123     $ 10,166     $ 4,050     $ 10,251     $ 11,464     $ 57,289     $ 18,097  
Gain on sale of real estate, net
    121       (781 )                 (56 )     (660 )     (460 )
Gain on change in control of interests (b)
    (27,859 )                                     (27,859 )      
Other gains (losses), net
                (755 )                        
Depreciation, amortization and other non-cash charges
    3,798       3,840       4,551       3,527       4,605       7,638       10,010  
Straight-line and other rent adjustments
    (1,020 )     (417 )     128       148       99       (1,437 )     19  
Impairment charges
    41             6,763       481       985       41       8,137  
AFFO adjustments to earnings from equity investments in real estate and the REITs
    2,457       5,794       3,503       6,042       6,692       8,159       6,749  
AFFO adjustments to Noncontrolling interests’ share of earnings
    (50 )     (110 )     (157 )     (72 )     (214 )     (160 )     (382 )
 
                                         
AFFO — real estate ownership
  $ 24,611     $ 18,492     $ 18,083     $ 20,377     $ 23,575     $ 43,011     $ 42,170  
 
                                         
AFFO per share (diluted)
  $ 0.61     $ 0.46     $ 0.45     $ 0.51     $ 0.59     $ 1.07     $ 1.06  
 
                                         
 
                                                       
Total Company
                                                       
AFFO
  $ 72,768     $ 39,142     $ 36,277     $ 27,607     $ 38,920     $ 111,818     $ 66,986  
 
                                         
AFFO per share (diluted)
  $ 1.81     $ 0.97     $ 0.90     $ 0.69     $ 0.98     $ 2.78     $ 1.69  
 
                                         
Diluted weighted average shares outstanding
    40,243,548       40,242,706       40,104,715       39,717,931       39,510,231       40,192,418       39,567,583  
 
                                         
     
(a)   Effective January 1, 2011, we include our equity investments in the REITs in our real estate ownership segment. The equity income (loss) from the REITs that is now included in our real estate ownership segment represents our proportionate share of the revenue less expenses of the properties held by the REITs. This treatment is consistent with that of our directly-owned properties. Results for the three months ended December 31, September 30 and June 30, 2010 as well as the six months ended June 30, 2010 have been adjusted to reflect this reclassification.
 
(b)   Represents gain recognized on purchase of the remaining interests in two ventures from CPA®:14, which we had previously accounted for under the equity method. In connection with purchasing these properties, we recognized a net gain of $27.1 million during the three and six months ended June 30, 2011 to adjust the carrying value of our existing interests in these ventures to their estimated fair values.
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 AFFO should not be considered as an alternative to net income as an indication of a company’s operating performance or to cash flow from operating activities as a measure of its liquidity, but should be used in conjunction with GAAP net income. FFO or AFFO disclosed by other real estate companies may not be comparable to our AFFO calculation.
NAREIT’s 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, deferred income tax benefits and expenses, 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, evaluate the effectiveness of our strategies, and determine executive compensation. 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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W. P. CAREY & CO. LLC
Adjusted Cash Flow from Operating Activities

(in thousands, except share and per share amounts)
                 
    Six months ended June 30,  
    2011     2010  
Cash flow from operating activities
  $ 45,987     $ 36,291  
Adjustments:
               
Distributions received from equity investments in real estate in excess of equity income (a)
    12,384       4,004  
Distributions paid to noncontrolling interests, net (b)
    (63 )     (161 )
Changes in working capital (c)
    21,043       8,059  
CPA®:14/16 Merger — revenue net of taxes (d)
    (21,268 )      
CPA®:14/16 Merger — taxes on special distribution (c)
    (2,166 )      
 
           
Adjusted cash flow from operating activities
  $ 55,917     $ 48,193  
 
           
Adjusted cash flow per share (diluted)
  $ 1.39     $ 1.22  
 
           
 
               
Distributions declared per share
  $ 1.062     $ 1.010  
 
           
Payout ratio (distributions per share/adjusted cash flow per share)
    76 %     83 %
 
           
Diluted weighted average shares outstanding
    40,192,418       39,567,583  
 
           
     
(a)   We take a substantial portion of our asset management revenue in shares of the CPA® REITs. To the extent we receive distributions in excess of the 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 and the receipt of certain receivables in a period other than that in which the item 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 item was actually incurred.
 
(d)   Amounts represent termination and disposition revenue, net of costs and a 45% tax provision, earned in connection with the CPA®:14/16 Merger. This revenue is generally earned in connection with events that provide liquidity or alternatives to the CPA® REIT shareholders. In determining cash flow generated from our core operations, we believe it is more appropriate to normalize cash flow for the impact of the net revenue earned in connection with the CPA®:14/16 Merger.
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 and as one measure of our operating performance when we determine executive compensation. Adjusted cash flow from operating activities should not be considered as an alternative to 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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W. P. CAREY & CO. LLC
Revenue Stability Analysis (Pro rata Basis)

(in thousands)
                                                                                                                 
    Three months ended     Six months ended June 30,  
    June 30, 2011     March 31, 2011     December 31, 2010     September 30, 2010     June 30, 2010     2011     2010  
    Revenue     %     Revenue     %     Revenue     %     Revenue     %     Revenue     %     Revenue     %     Revenue     %  
 
                                                                                                               
Asset management revenues
  $ 16,619       16 %   $ 19,820       31 %   $ 19,127       28 %   $ 19,219       41 %   $ 19,080       33 %   $ 36,439       22 %   $ 37,900       33 %
Incentive, termination and subordinated disposition revenue (a)
    52,515       50 %           0 %           0 %           0 %           0 %     52,515       31 %           0 %
Pro rata net lease revenues
    29,727       29 %     27,453       44 %     26,739       38 %     26,828       57 %     26,255       45 %     57,180       34 %     53,738       49 %
 
                                                                                   
 
    98,861       95 %     47,273       75 %     45,866       66 %     46,047       98 %     45,335       78 %     146,134       87 %     91,638       82 %
 
                                                                                   
 
                                                                                                               
Structuring revenue (b)
    5,735       5 %     15,945       25 %     23,881       34 %     708       2 %     13,102       22 %     21,680       13 %     19,936       18 %
 
                                                                                   
Total Adjusted Revenue
  $ 104,596       100 %   $ 63,218       100 %   $ 69,747       100 %   $ 46,755       100 %   $ 58,437       100 %   $ 167,814       100 %   $ 111,574       100 %
 
                                                                                   
 
                                                                                                               
Reconciliation of Total Adjusted Revenue
                                                                                                               
Total revenue — as reported
  $ 118,398             $ 77,532             $ 81,969             $ 58,954             $ 70,001             $ 195,930             $ 132,266          
Less: Reimbursed costs from affiliates (c)
    (17,059 )             (17,719 )             (13,713 )             (15,908 )             (14,838 )             (34,778 )             (29,440 )        
Less: Wholesaling revenue (c)
    (2,922 )             (3,280 )             (4,503 )             (2,260 )             (2,741 )             (6,202 )             (5,283 )        
Add: Pro rata share of revenues from equity investments
    6,844               7,760               6,889               6,918               6,895               14,604               15,836          
Less: Pro rata share of revenues due to noncontrolling interests
    (665 )             (1,075 )             (895 )             (949 )             (880 )             (1,740 )             (1,805 )        
 
                                                                                                 
Total Adjusted Revenue
  $ 104,596             $ 63,218             $ 69,747             $ 46,755             $ 58,437             $ 167,814             $ 111,574          
 
                                                                                                 
 
                                                                                                               
Reconciliation of Total Pro Rata Net Lease Revenues
                                                                                                               
Lease revenues — as reported
  $ 17,839             $ 15,460             $ 15,403             $ 16,203             $ 15,444             $ 33,299             $ 31,135          
Add: Pro rata share of revenues from equity investments
    6,844               7,760               6,889               6,918               6,895               14,604               15,836          
Less: Pro rata share of revenues due to noncontrolling interests
    (665 )             (1,075 )             (895 )             (949 )             (880 )             (1,740 )             (1,805 )        
Add: Other real estate income (d)
    5,709               5,308               5,342               4,656               4,796               11,017               8,572          
 
                                                                                                 
Total Pro Rata Net Lease Revenues
  $ 29,727             $ 27,453             $ 26,739             $ 26,828             $ 26,255             $ 57,180             $ 53,738          
 
                                                                                                 
     
(a)   Upon consummation of the CPA®:14/16 Merger, we earned revenues of $31.2 million in connection with the termination of the advisory agreement with CPA®:14, which we received in the form of restricted shares of CPA®:16 — Global common stock, and $21.3 million of subordinated disposition revenues.
 
(b)   We earn structuring revenue on acquisitions structured on behalf of the REITs we manage and expect significant period-to-period variation in such revenue based on changes in investment volume. Investments structured on behalf of the REITs totaled approximately $249 million, $345 million, $593 million, $13 million and $291 million for the three months ended June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively, and approximately $594 million and $440 million for the six months ended June 30, 2011 and June 30, 2010, respectively.
 
(c)   Total adjusted revenue excludes reimbursements of costs received from the affiliated REITs as they have no impact on net income. Also excluded is wholesaling revenue earned in connection with CPA®:17 — Global’s and CWI’s initial public offering, which is substantially offset by underwriting costs incurred in connection with the offering.
 
(d)   Other real estate income generally consists of revenue from Carey Storage Management LLC (“Carey Storage”), a subsidiary that invests in domestic self-storage properties, and Livho, Inc., a subsidiary that operates a hotel franchise. Other real estate income also includes lease termination payments and other non-rent related revenues from real estate ownership, and as a result, we expect Other real estate income to fluctuate period-to-period.
 
Note:   Amounts presented for prior periods do not reflect subsequent adjustments to historical amounts presented for assets reclassified as held for sale or sold.
Non-GAAP Financial Disclosure
Total adjusted revenue is a non-GAAP financial measure that represents revenues on a GAAP basis adjusted for our pro rata share of revenues from equity investments as well as the pro rata share of revenues due to noncontrolling interests. We believe that total adjusted revenue is useful to investors and analysts as a supplemental measure of revenues from our core operations, and we use it to evaluate the stability of our underlying revenue streams. Total adjusted revenue should not be considered as an alternative to revenues computed on a GAAP basis as a measure of our profitability. Total adjusted revenue may not be comparable to similarly titled measures of other companies.

 

9


 

W. P. CAREY & CO. LLC
Portfolio Debt Overview (Pro rata Basis)
As of June 30, 2011

(in thousands)
Portfolio Debt Maturity
         
Year of Maturity   Outstanding Balance  
2011
  $ 17,058  
2012
    262,775 (a)
2013
    1,045  
2014
    69,013  
2015
    49,294  
2016
    55,347  
2017
    53,735  
2018
    31,291  
2019
    25,035  
2020
    93,392  
2021
    4,970  
2022
     
2023
    4,958  
 
     
Total
  $ 667,913  
 
     
(BAR CHART)
Fixed and Variable Rate Debt Analysis
         
    Outstanding Balance  
Non-Recourse Debt
       
Fixed
  $ 259,398  
Fixed — Future Rate Reset
    86,201  
Fixed — Capped
     
Variable — Capped
    22,085  
Variable — Floating
    14,252  
Fixed — Swap Agreement
    48,337  
Variable
    4,480  
 
     
 
    434,753  
 
     
Recourse Debt
       
Variable — Line of Credit
    233,160  
 
     
Total Debt
  $ 667,913  
 
     
     
(a)   Amount includes outstanding recourse debt on the unsecured line of credit, which expires in June 2012.

 

10


 

W. P. CAREY & CO. LLC
Detailed Debt Summary (Pro rata Basis)
As of June 30, 2011

(in thousands)
                         
        Current            
Tenant/Lease Guarantor / Percent Ownership   Rate Type   Interest Rate     Maturity Date   Outstanding Balance  
                     
Sprint Spectrum, LP (a)
  Fixed     7.64 %   Aug-2011   $ 7,783  
24 Hour Fitness USA, Inc.
  Fixed     7.50 %   Aug-2011     2,728  
Career Education Corporation
  Fixed     7.58 %   Dec-2011     6,547  
Qwest Communications, Inc.
  Fixed     7.50 %   Jun-2012     1,330  
AutoZone, Inc. — Series C
  Fixed     6.85 %   Aug-2012     265  
Anthony’s Manufacturing Company
  Fixed     5.11 %   Oct-2012     8,139  
BE Aerospace, Inc.
  Fixed     6.11 %   Nov-2012     8,075  
Faurecia Exhaust Systems, Inc.
  Fixed     5.16 %   Nov-2012     2,347  
Alstom Power, Inc. and Werner Co.
  Fixed     5.18 %   Dec-2012     9,459  
AutoZone, Inc. — Series D
  Fixed     6.85 %   Aug-2013     1,045  
US Airways Group, Inc. (79%)
  Variable - Floating     4.19 %   Apr-2014     14,252  
Billipp Portfolio
  Variable     2.75 %   May-2014     4,480  
Carrefour France, SAS (46%) (b)
  Fixed - Future Rate Reset     5.55 %   Dec-2014     50,281  
Hibbett Sports
  Fixed - Swap     6.45 %   May-2015     4,620  
Lowe’s Home Improvement Warehouse
  Fixed     4.87 %   Sep-2015     8,660  
Bouygues Telecom, S.A. (Tours) (95%) (b)
  Fixed - Future Rate Reset     3.07 %   Oct-2015     6,243  
The American Bottling Company
  Fixed     5.13 %   Nov-2015     29,771  
World Color Printing
  Fixed     5.30 %   May-2016     4,992  
CheckFree Holdings, Inc. (c)
  Fixed     6.18 %   Jun-2016     28,946  
Self-Storage Facility — Bentonville, AR (40%)
  Fixed     6.41 %   Jul-2016     829  
Self-Storage Facility — Tallahassee, FL (40%)
  Fixed     6.05 %   Oct-2016     1,569  
Bouygues Telecom, S.A. (Illkirch-Graffenstaden) (75%) (b) (d)
  Fixed - Future Rate Reset     5.01 %   Oct-2016     12,243  
Consolidated Systems, Inc. (60%)
  Fixed     5.87 %   Nov-2016     6,768  
Hellweg Die Profi-Baumärkte GmbH & Co. KG (5%) (b)
  Fixed     5.49 %   Jan-2017     1,004  
Amylin Pharmaceuticals, Inc. (c)
  Fixed     6.20 %   Jul-2017     34,999  
Medica France, S.A. (46%) (b)
  Fixed     4.50 %   Oct-2017     17,732  

 

11


 

W. P. CAREY & CO. LLC
Detailed Debt Summary (Pro rata Basis)
As of June 30, 2011

(in thousands)
                         
        Current            
Tenant/Lease Guarantor / Percent Ownership   Rate Type   Interest Rate     Maturity Date   Outstanding Balance  
                     
The New York Times Company (17.75%)
  Variable - Capped     2.81 %   Apr-2018   $ 22,085  
OBI Wroclaw (b)
  Fixed - Swap     5.48 %   May-2018     9,206  
Self-Storage Portfolio (40%) (d)
  Fixed - Future Rate Reset     7.03 %   Feb-2019/Mar-2019     12,057  
Orbital Sciences Corporation
  Fixed     7.75 %   Jul-2019     12,978  
JPMorgan Chase Bank, N.A.
  Fixed - Swap     5.47 %   Jul-2020     34,511  
Self-Storage Facilities — Chicago, IL (40%)
  Fixed - Future Rate Reset     6.25 %   Aug-2020     2,668  
Self-Storage Facility — Pensacola, FL
  Fixed - Future Rate Reset     6.25 %   Nov-2020     1,855  
Self-Storage Facility — Chicago, IL (40%)
  Fixed - Future Rate Reset     6.62 %   Dec-2020     854  
Federal Express Corporation (c)
  Fixed     5.48 %   Dec-2020     53,504  
Information Resources, Inc. (33%)
  Fixed     5.92 %   Feb-2021     4,970  
Hologic, Inc. (36%)
  Fixed     6.40 %   May-2023     4,958  
 
                   
Total Non-Recourse Debt
        5.51 %(b)         434,753  
 
                   
                     
Unsecured Line of Credit
  Variable     1.09 %(b)   Jun-2012     233,160  
 
                   
Total Debt
        3.96 %       $ 667,913  
 
                   
 
     
(a)   On August 1, 2011 we closed a $8.5 million mortgage refinancing with Wells Fargo encumbering the property. The existing $7.8 million loan balance was paid off at closing.
 
(b)   Debt balance calculated using an exchange rate of 1.4391 EUR/USD as of June 30, 2011.
 
(c)   In connection with the CPA®:14/16 Merger, we purchased the remaining interest in the property, in which we already had a joint interest, from CPA®:14.
 
(d)   Reflects weighted average interest rate for the applicable debt.

 

12


 

W. P. CAREY & CO. LLC
2011 Investment Activity
As of June 30, 2011

(in thousands, except square footage)
Investment Activity
Acquisitions — REITs
                                 
Portfolio(s)   Tenant/Lease Guarantor   Property Location(s)   Purchase Price     Closing Date   Property Type   Gross Square Footage  
CPA®:17 — Global
  Terminal Freezers, LLC   Oxnard & Watsonville, CA   $ 99,634     January-11   Warehouse/Distribution     866,525  
CPA®:15 (15%), CPA®:17 — Global (85%)
  C1000 Logistiek Vastgoed B.V.   various locations in The Netherlands     207,635     January-11   Warehouse/Distribution     2,046,858  
CPA®:17 — Global
  Harbor Freight Tools USA, Inc.   Dillon, SC     32,060     March-11   Warehouse/Distribution     1,010,859  
CPA®:17 — Global
  Dolgencorp, LLC (a)   Richwood, LA; Vass, NC & Hot Springs, VA     2,852     March-11   Retail   BTS
CPA®:17 — Global
  Curtiss-Wright Flow Control Service   Middleburg Heights, OH     2,586     March-11   Industrial     28,185  
CPA®:17 — Global
  Flanders Corporation   Ardmore, OK; Smithfield, NC; Bartow, FL & Momence, IL     50,790     April-11   Warehouse/Distribution     722,108  
CPA®:17 — Global
  Berry Plastics Corporation   Evansville, IN     2,723     April-11   Industrial     263,088  
CPA®:17 — Global
  Dolgencorp, LLC (a)   Hopewell & Chesterfield, VA; Mount Hermon & Mangham, LA     5,722     April-11; May-11
& June-11
  Retail   BTS
CPA®:17 — Global
  ICF International, Inc.   Martinsville, VA     14,819     May-11   Office   BTS
CPA®:15 (75%), CPA®:16 — Global (25%)
  Hellweg Die Profi-Baumärkte GmbH & Co. KG   Bad Salzungen, Germany     4,422     May-11   Retail     72,490  
CPA®:17 — Global
  CRO — San Luis Development, LLC (b)   Chicago, IL     7,398     June-11   Retail   BTS
 
                           
 
                               
Total Acquisitions — Leased Properties
            430,641               5,010,113  
 
                           
 
                         
                                 
Portfolio(s)   Property Type   Property Location(s)   Purchase Price     Closing Date            
CPA®:17 — Global
  Self-Storage Facility   Fort Worth, TX     3,431     April-11            
CWI
  Hospitality   Long Beach, CA     43,600     May-11            
CPA®:17 — Global
  Self-Storage Facilities   various locations in California, Hawaii and Illinois     86,857     June-11            
 
                             
 
                               
Total Acquisitions — Hospitality/Self Storage Properties
            133,888                  
 
                             
 
                               
Notes Receivable
                               
                                 
Portfolio   Borrower/Guarantor   Interest Rate   Note Amount     Closing Date   Maturity Date        
CPA®:17 — Global
  BPS Partners   8.00%     30,000     June-11   June-16        
 
                             
 
                               
Total Acquisitions
          $ 594,529                  
 
                             
     
(a)   Acquisition includes a build-to-suit (“BTS”) transaction. Gross square footage cannot be determined at this time.
 
(b)   The tenant is building an approximately 17,000 square foot restaurant on the property, which is expected to open on August 30, 2011.

 

13


 

W. P. CAREY & CO. LLC
2011 Investment Activity
As of June 30, 2011

(in thousands, except square footage)
Disposition Activity
Dispositions — CPA ® REITs
                                 
                    Disposition          
Portfolio(s)   Tenant/Lease Guarantor   Property Location(s)   Gross Sale Price     Date   Property Type   Gross Square Footage  
CPA®:15
  Childtime Childcare, Inc.   Centreville, VA   $ 788     February-11   Other     6,360  
CPA®:15
  Childtime Childcare, Inc.   Century Oaks, VA     1,700     March-11   Other     6,360  
CPA®:16 — Global (50%), CPA®:15 (50%)
  Goertz & Schiele   Puttlingen, Germany     438     April-11   Industrial     33,314  
CPA®:16 — Global
  Production Resources Group   Burbank, CA     6,785     May-11   Leisure, Amusement, Entertainment     49,374  
CPA®:15
  Childtime Childcare, Inc.   Manassas, VA     1,765     May-11   Other     8,854  
CPA®:16 — Global
  International Garden   Lakewood, NJ     6,000     May-11   Warehouse/Distribution     218,201  
CPA®:17 — Global
  Carquest Canada Ltd.   New Brunswick and Quebec, Canada     19,773     May-11   Warehouse/Distribution     231,870  
CPA®:16 — Global
  NutraMax Products, Inc.   Houston, TX     6,874     June-11   Industrial     253,215  
CPA®:15 (67%), WPC LLC (33%)
  Information Resources   Chicago, IL     4,745     June-11   Office     92,400  
 
                           
 
                               
Total REIT Dispositions
            48,868               899,948  
 
                           
 
                               
Dispositions — Owned Portfolio
                               
 
                               
WPC LLC
  AT&T Corp.   Bridgeton, MO     8,250     February-11   Industrial     85,510  
WPC LLC
  3E Trading LLC   West Mifflin, PA     1,032     February-11   Retail     121,054  
WPC LLC
  Honeywell   Houston, TX     1,595     June-11   Warehouse/Distribution     32,320  
 
                           
 
                               
Total Owned Portfolio Dispositions
            10,877               238,884  
 
                           
 
                               
Total Dispositions
          $ 59,745               1,138,832  
 
                           
Foreclosure and Receivership Activity
                                 
            Outstanding                
Portfolio(s)   Tenant/Lease Guarantor   Property Location(s)   Mortgage Balance     Date   Event   Gross Square Footage  
CPA®:15
  Vacant   Port Huron & Shelby Township, MI   $ 6,143     February-11   Receivership     294,883  
CPA®:14
  Vacant   Duluth, GA     7,141     March-11   Foreclosure     221,374  
CPA®:14
  Vacant   Eagan, MN     19,363     April-11   Foreclosure     99,342  
 
                           
 
                               
 
          $ 32,647               615,599  
 
                           

 

14


 

W. P. CAREY & CO. LLC
Portfolio Analysis — Diversification by Rent and Historical Occupancy (Pro rata Basis)
As of June 30, 2011

(in thousands)
Portfolio Diversification by Annualized Contractual Minimum Base Rent
                 
    Annualized Contractual        
Top Ten Tenants/Lease Guarantors   Minimum Base Rent     Percent  
Carrefour France, SAS (a)
  $ 8,105       8 %
Federal Express Corporation (b)
    7,456       8 %
CheckFree Holdings, Inc. (b)
    5,216       5 %
The American Bottling Company
    4,895       5 %
The New York Times Company
    4,423       5 %
JP Morgan Chase Bank, N.A.
    3,862       4 %
Amylin Pharmaceuticals, Inc. (b)
    3,641       4 %
Orbital Sciences Corporation
    3,307       3 %
U.S. Airways Group, Inc.
    3,297       3 %
Titan Corporation
    3,055       3 %
 
             
Total
  $ 47,257          
 
             
(PERFORMANCE GRAPH)
     
(a)   Rent amounts are subject to fluctuations in foreign currency exchange rates.
 
(b)   Tenant is new to the portfolio this quarter. In connection with the CPA®:14/16 Merger, we purchased the remaining interest in the property, in which we already had a joint interest, from CPA®:14.
 
(c)   Percentage of the portfolio’s total pro rata square footage that was subject to lease.

 

15


 

W. P. CAREY & CO. LLC
Portfolio Analysis — Diversification by Property Type (Pro rata Basis)
As of June 30, 2011

(in thousands)
                 
Property Type   Square Footage     Percent  
Warehouse/Distribution
    5,112       36 %
Industrial
    4,869       35 %
Office
    2,678       19 %
Retail
    874       6 %
Other Properties (a)
    363       3 %
Hospitality
    158       1 %
 
           
Total (b)
    14,054       100 %
 
           
                 
    Annualized Contractual        
Property Type   Minimum Base Rent     Percent  
Office
  $ 38,828       40 %
Industrial
    25,738       26 %
Warehouse/Distribution
    18,538       19 %
Other Properties (a)
    6,727       7 %
Retail
    5,478       6 %
Hospitality
    2,100       2 %
 
           
Total (b)
  $ 97,409       100 %
 
           
(PERFORMANCE GRAPH)
 
     
(a)   Reflects properties used for health care; education, child care and social services; leisure, amusement and recreation; and unoccupied land.
 
(b)   Excludes 21 domestic self-storage properties in our Carey Storage subsidiary, totaling approximately 1.5 million square feet.

 

16


 

W. P. CAREY & CO. LLC
Portfolio Analysis — Diversification by Tenant Industry (Pro rata Basis)
As of June 30, 2011

(in thousands)
                 
    Annualized Contractual        
Industry Type (a)   Minimum Base Rent     Percent  
Retail Trade
  $ 16,388       17 %
Business and Commercial Services
    13,422       14 %
Healthcare, Education and Childcare
    7,997       8 %
Transportation — Cargo
    7,484       8 %
Media: Printing and Publishing
    6,779       7 %
Telecommunications
    5,496       6 %
Electronics
    4,971       5 %
Beverages, Food, and Tobacco
    4,949       5 %
Aerospace and Defense
    4,907       5 %
Banking
    3,862       4 %
Forest Products and Paper
    3,772       4 %
Transportation — Personal
    3,504       4 %
Machinery
    2,623       3 %
Hotels and Gaming
    2,110       2 %
Mining, Metals, and Primary Metal Industries
    1,513       1 %
Consumer and Durable Goods
    1,463       1 %
Chemicals, Plastics, Rubber, and Glass
    1,179       1 %
Leisure, Amusement, Entertainment
    927       1 %
Construction and Building
    878       1 %
Textiles, Leather, and Apparel
    851       1 %
Other (b)
    2,334       2 %
 
           
Total (c)
  $ 97,409       100 %
 
           
 
     
(a)   Based on the Moody’s Classification System and information provided by the tenant.
 
(b)   Includes revenue from tenants in the following industries: federal, state and local government (0.7%), consumer non-durable goods (0.7%), automobile (0.7%), multi-tenant properties (0.2%) and grocery (0.04%).
 
(c)   Excludes 21 domestic self-storage properties in our Carey Storage subsidiary, totaling approximately 1.5 million square feet.

 

17


 

W. P. CAREY & CO. LLC
Portfolio Analysis — Diversification by Geography (Pro rata Basis)
As of June 30, 2011

(in thousands)
                 
Region   Square Footage     Percent  
United States
               
South
    5,031       36 %
East
    2,792       20 %
West
    2,411       17 %
Midwest
    1,638       11 %
 
           
 
    11,872       84 %
 
           
International
               
France
    1,683       12 %
Germany
    246       2 %
Spain
    139       1 %
Poland
    114       1 %
 
           
 
    2,182       16 %
 
           
Total (a)
    14,054       100 %
 
           
                 
    Annualized Contractual        
Region   Minimum Base Rent     Percent  
United States
               
South
  $ 32,013       33 %
West
    23,064       24 %
East
    12,333       12 %
Midwest
    10,167       10 %
 
           
 
    77,577       79 %
 
           
International
               
France
    14,500       15 %
Germany
    2,444       3 %
Spain
    1,817       2 %
Poland
    1,071       1 %
 
           
 
    19,832       21 %
 
           
Total (a)
  $ 97,409       100 %
 
           
(PERFORMANCE GRAPH)
 
     
(a)   Excludes 21 domestic self-storage properties in our Carey Storage subsidiary, totaling approximately 1.5 million square feet.

 

18


 

W. P. CAREY & CO. LLC
Portfolio Analysis — Lease Maturities (Pro rata Basis)
As of June 30, 2011

(in thousands)
                 
    Annualized        
    Contractual        
Year of Lease   Minimum Base        
Expiration (a)   Rent     Percent  
2011 (b)
  $ 4,608       5 %
2012
    9,577       10 %
2013
    4,448       5 %
2014
    11,145       11 %
2015
    13,431       14 %
2016
    6,861       7 %
2017
    5,915       6 %
2018
    3,799       4 %
2019
    14,121       14 %
2020
    3,273       3 %
2021
    3,801       4 %
2022
    1,657       2 %
2023
          0 %
2024
    4,423       4 %
2025
    1,279       1 %
2026
    948       1 %
2027
    2,444       3 %
2028
          0 %
2029
          0 %
2030
    5,679       6 %
 
           
Total (c)
  $ 97,409       100 %
 
           
Weighted Average Years to Maturity: 6.63
(PERFORMANCE GRAPH)
 
     
(a)   Assumes tenant does not exercise renewal option.
 
(b)   Month-to-month properties are counted in 2011 revenue stream.
 
(c)   Excludes 21 domestic self-storage properties in our Carey Storage subsidiary, totaling approximately 1.5 million square feet.

 

19


 

W. P. CAREY & CO. LLC
Consolidated Balance Sheets (Unaudited)

(in thousands, except share amounts)
                 
    June 30, 2011     December 31, 2010  
Assets
               
Investments in real estate:
               
Real estate, at cost
  $ 646,923     $ 560,592  
Operating real estate, at cost
    109,748       109,851  
Accumulated depreciation
    (129,072 )     (122,312 )
 
           
Net investments in properties
    627,599       548,131  
Net investment in direct financing leases
    76,114       76,550  
Equity investments in real estate and the REITs
    528,012       322,294  
 
           
Net investments in real estate
    1,231,725       946,975  
Cash and cash equivalents
    26,461       64,693  
Due from affiliates
    32,014       38,793  
Intangible assets and goodwill, net
    130,122       87,768  
Other assets, net
    39,384       34,097  
 
           
Total assets
  $ 1,459,706     $ 1,172,326  
 
           
 
               
Liabilities and Equity
               
Liabilities:
               
Non-recourse debt
  $ 342,941     $ 255,232  
Line of credit
    233,160       141,750  
Accounts payable, accrued expenses and other liabilities
    64,774       40,808  
Income taxes, net
    58,239       41,443  
Distributions payable
    21,784       20,073  
 
           
Total liabilities
    720,898       499,306  
 
           
Redeemable noncontrolling interest
    6,792       7,546  
 
           
Commitments and contingencies
               
Equity:
               
W. P. Carey members’ equity:
               
Listed shares, no par value, 100,000,000 shares authorized; 39,707,156 and 39,454,847 shares issued and outstanding, respectively
    765,808       763,734  
Distributions in excess of accumulated earnings
    (85,874 )     (145,769 )
Deferred compensation obligation
    10,511       10,511  
Accumulated other comprehensive income (loss)
    2,904       (3,463 )
 
           
Total W. P. Carey members’ equity
    693,349       625,013  
Noncontrolling interests
    38,667       40,461  
 
           
Total equity
    732,016       665,474  
 
           
Total liabilities and equity
  $ 1,459,706     $ 1,172,326  
 
           

 

20


 

W. P. CAREY & CO. LLC
Consolidated Statements of Income (Unaudited)

(in thousands, except share and per share amounts)
                                 
    Three months ended June 30,     Six months ended June 30,  
    2011     2010     2011     2010  
Revenues
                               
Asset management revenue
  $ 16,619     $ 19,080     $ 36,439     $ 37,900  
Structuring revenue
    5,735       13,102       21,680       19,936  
Incentive, termination and subordinated disposition revenue
    52,515             52,515        
Wholesaling revenue
    2,922       2,741       6,202       5,283  
Reimbursed costs from affiliates
    17,059       14,838       34,778       29,440  
Lease revenues
    17,839       15,444       33,299       31,135  
Other real estate income
    5,709       4,796       11,017       8,572  
 
                       
 
    118,398       70,001       195,930       132,266  
 
                       
Operating Expenses
                               
General and administrative
    (24,585 )     (18,647 )     (45,908 )     (36,694 )
Reimbursable costs
    (17,059 )     (14,838 )     (34,778 )     (29,440 )
Depreciation and amortization
    (7,305 )     (5,743 )     (12,742 )     (11,828 )
Property expenses
    (3,066 )     (2,310 )     (6,204 )     (4,494 )
Other real estate expenses
    (2,942 )     (1,773 )     (5,499 )     (3,588 )
Impairment charges
    (41 )           (41 )      
 
                       
 
    (54,998 )     (43,311 )     (105,172 )     (86,044 )
 
                       
Other Income and Expenses
                               
Other interest income
    560       336       1,235       609  
Income from equity investments in real estate and the REITs
    12,465       7,638       18,681       16,780  
Gain on change in control of interests
    27,859             27,859        
Other income and (expenses)
    4,758       47       5,239       (610 )
Interest expense
    (5,396 )     (3,765 )     (9,836 )     (7,476 )
 
                       
 
    40,246       4,256       43,178       9,303  
 
                       
Income from continuing operations before income taxes
    103,646       30,946       133,936       55,525  
Provision for income taxes
    (24,760 )     (6,751 )     (32,334 )     (10,863 )
 
                       
Income from continuing operations
    78,886       24,195       101,602       44,662  
 
                       
Discontinued Operations
                               
(Loss) income from operations of discontinued properties
    (36 )     455       83       1,038  
(Loss) gain on sale of real estate
    (121 )     56       660       460  
Impairment charges
          (985 )           (8,137 )
 
                       
(Loss) income from discontinued operations
    (157 )     (474 )     743       (6,639 )
 
                       
Net Income
    78,729       23,721       102,345       38,023  
Add: Net loss attributable to noncontrolling interests
    384       128       714       414  
Less: Net income attributable to redeemable noncontrolling interest
    (1 )     (417 )     (604 )     (592 )
 
                       
Net Income Attributable to W. P. Carey Members
  $ 79,112     $ 23,432     $ 102,455     $ 37,845  
 
                       
Basic Earnings Per Share
                               
Income from continuing operations attributable to W. P. Carey members
  $ 1.96     $ 0.60     $ 2.52     $ 1.11  
(Loss) income from discontinued operations attributable to W. P. Carey members
          (0.01 )     0.02       (0.16 )
 
                       
Net income attributable to W. P. Carey members
  $ 1.96     $ 0.59     $ 2.54     $ 0.95  
 
                       
Diluted Earnings Per Share
                               
Income from continuing operations attributable to W. P. Carey members
  $ 1.94     $ 0.60     $ 2.50     $ 1.11  
(Loss) income from discontinued operations attributable to W. P. Carey members
          (0.01 )     0.02       (0.16 )
 
                       
Net income attributable to W. P. Carey members
  $ 1.94     $ 0.59     $ 2.52     $ 0.95  
 
                       
Weighted Average Shares Outstanding
                               
Basic
    39,782,796       39,081,064       39,760,676       39,116,126  
 
                       
Diluted
    40,243,548       39,510,231       40,192,418       39,567,583  
 
                       
Amounts Attributable to W. P. Carey Members
                               
Income from continuing operations, net of tax
  $ 79,269     $ 23,906     $ 101,712     $ 44,484  
(Loss) income from discontinued operations, net of tax
    (157 )     (474 )     743       (6,639 )
 
                       
Net income
  $ 79,112     $ 23,432     $ 102,455     $ 37,845  
 
                       
Distributions Declared Per Share
  $ 0.550     $ 0.506     $ 1.062     $ 1.010  
 
                       

 

21


 

W. P. CAREY & CO. LLC
Consolidated Statements of Cash Flows (Unaudited)

(in thousands)
                 
    Six months ended June 30,  
    2011     2010  
Cash Flows — Operating Activities
               
Net income
  $ 102,345     $ 38,023  
Adjustments to net income:
               
Depreciation and amortization including intangible assets and deferred financing costs
    12,782       12,377  
Income from equity investments in real estate and the REITs in excess of distributions received
    223       (5,942 )
Straight-line rent and financing lease adjustments
    (1,386 )     429  
Amortization of deferred revenue
    (1,573 )      
Gain on sale of real estate
    (660 )     (460 )
Unrealized (gain) loss on foreign currency transactions and others
    (371 )     860  
Realized (gain) loss on foreign currency transactions and others
    (1,188 )     143  
Allocation of loss to profit-sharing interest
          (373 )
Management income received in shares of affiliates
    (52,142 )     (17,344 )
Gain on conversion of shares
    (3,806 )      
Gain on change in control of interests
    (27,859 )      
Impairment charges
    41       8,137  
Stock-based compensation expense
    8,628       4,936  
Deferred acquisition revenue received
    15,462       17,048  
Increase in structuring revenue receivable
    (9,222 )     (9,352 )
Increase (decrease) in income taxes payable, net
    16,256       (6,116 )
Net changes in other operating assets and liabilities
    (11,543 )     (6,075 )
 
           
Net cash provided by operating activities
    45,987       36,291  
 
           
Cash Flows — Investing Activities
               
Distributions received from equity investments in real estate and the REITs in excess of equity income
    14,498       7,762  
Capital contributions to equity investments
    (2,297 )      
Purchase of interests in affiliate
    (121,315 )      
Purchases of real estate and equity investments in real estate
    (24,323 )     (74,904 )
VAT paid in connection with acquisition of real estate
          (4,222 )
Capital expenditures
    (1,375 )     (1,652 )
Cash acquired on acquisition of subsidiaries
    57        
Proceeds from sale of real estate
    10,643       9,200  
Proceeds from sale of securities
    777        
Funding of short-term loans to affiliates
    (94,000 )      
Proceeds from repayment of short-term loans from affiliates
    94,000        
Funds released from escrow
    2,030       36,132  
Funds placed in escrow
    (3,899 )      
 
           
Net cash used in investing activities
    (125,204 )     (27,684 )
 
           
Cash Flows — Financing Activities
               
Distributions paid
    (40,849 )     (52,490 )
Contributions from noncontrolling interests
    1,459       11,180  
Distributions to noncontrolling interests
    (2,822 )     (1,444 )
Purchase of noncontrolling interest
    (7,502 )      
Distributions to profit-sharing interest
          (693 )
Scheduled payments of mortgage principal
    (9,897 )     (10,322 )
Proceeds from mortgage financing
    7,438       6,315  
Proceeds from line of credit
    231,410       83,250  
Payments of lines of credit
    (140,000 )     (22,500 )
Payment of financing costs
    (831 )     (301 )
Proceeds from issuance of shares
    1,018       799  
Windfall tax benefits (provision) associated with stock-based compensation awards
    872       (159 )
 
           
Net cash provided by financing activities
    40,296       13,635  
 
           
Change in Cash and Cash Equivalents During the Period
               
Effect of exchange rate changes on cash
    689       (1,243 )
 
           
Net (decrease) increase in cash and cash equivalents
    (38,232 )     20,999  
Cash and cash equivalents, beginning of period
    64,693       18,450  
 
           
Cash and cash equivalents, end of period
  $ 26,461     $ 39,449  
 
           

 

22


 

W. P. CAREY & CO. LLC
Detailed Property Summary (Pro rata Basis)
As of June 30, 2011
                                                             
                                    Annualized Contractual                    
                            Square Footage     Minimum Base Rent (in     Percentage of Total              
Tenant/Lease Guarantor   Percent Ownership     Property Location   Property Type   Tenant Industry   Region   (e)     thousands)     Rent (e)     Increase Factor   Lease Expiration   Maximum Term
Carrefour France, SAS (a)
    46 %   Nimes, France   Warehouse/Distribution   Retail Trade   Europe     177,792     $ 1,112       1.14 %   INSEE (b)   Jun-2016   Jun-2019
Carrefour France, SAS (a)
    46 %   Colomiers, France   Warehouse/Distribution   Retail Trade   Europe     174,267       1,093       1.12 %   INSEE (b)   Jun-2015   Jun-2018
Carrefour France, SAS (a)
    46 %   Crepy en Valois, France   Warehouse/Distribution   Retail Trade   Europe     152,370       997       1.02 %   INSEE (b)   Jun-2015   Jun-2018
Carrefour France, SAS (a)
    46 %   Lens, France   Warehouse/Distribution   Retail Trade   Europe     126,929       796       0.82 %   INSEE (b)   Jun-2015   Jun-2018
Carrefour France, SAS (a)
    46 %   Nîmes, France   Warehouse/Distribution   Retail Trade   Europe     134,942       736       0.76 %   INSEE (b)   Jun-2015   Jun-2018
Carrefour France, SAS (a)
    46 %   Ploufragan, France   Warehouse/Distribution   Retail Trade   Europe     122,596       685       0.70 %   INSEE (b)   Jun-2015   Jun-2018
Carrefour France, SAS (a)
    46 %   Crepy en Valois, France   Warehouse/Distribution   Retail Trade   Europe     101,252       663       0.68 %   INSEE (b)   Jun-2015   Jun-2018
Carrefour France, SAS (a)
    46 %   Thuit Hebert, France   Warehouse/Distribution   Retail Trade   Europe     107,962       589       0.60 %   INSEE (b)   Jun-2015   Jun-2018
Carrefour France, SAS (a)
    46 %   Cholet, France   Warehouse/Distribution   Retail Trade   Europe     99,265       555       0.57 %   INSEE (b)   Jun-2015   Jun-2018
Carrefour France, SAS (a)
    46 %   Colomiers, France   Warehouse/Distribution   Retail Trade   Europe     60,294       378       0.39 %   INSEE (b)   Jun-2015   Jun-2018
Carrefour France, SAS (a)
    46 %   Thuit Hebert, France   Warehouse/Distribution   Retail Trade   Europe     68,479       374       0.38 %   INSEE (b)   Jun-2015   Jun-2018
Carrefour France, SAS (a)
    46 %   Colomiers, France   Warehouse/Distribution   Retail Trade   Europe     7,524       47       0.05 %   INSEE (b)   Jun-2015   Jun-2018
Carrefour France, SAS (a)
    46 %   Lens, France   Warehouse/Distribution   Retail Trade   Europe     4,349       27       0.03 %   INSEE (b)   Jun-2015   Jun-2018
Carrefour France, SAS (a)
    46 %   Colomiers, France   Warehouse/Distribution   Retail Trade   Europe     2,899       18       0.02 %   INSEE (b)   Jun-2015   Jun-2018
Carrefour France, SAS (a)
    46 %   Lens, France   Warehouse/Distribution   Retail Trade   Europe     2,599       16       0.02 %   INSEE (b)   Jun-2015   Jun-2018
Carrefour France, SAS (a)
    46 %   Nîmes, France   Warehouse/Distribution   Retail Trade   Europe     2,554       14       0.01 %   INSEE (b)   Jun-2015   Jun-2018
Carrefour France, SAS (a)
    46 %   Nîmes, France   Warehouse/Distribution   Retail Trade   Europe     596       3       0.00 %   INSEE (b)   Jun-2015   Jun-2018
 
                                                     
Carrefour France, SAS Total
                            1,346,669       8,105       8.32 %            
 
                                                           
Federal Express Corporation
    100 %   Collierville, TN   Office   Transportation - Cargo   South     97,595       1,793       1.84 %   CPI   Nov-2019   Aug-2039
Federal Express Corporation
    100 %   Collierville, TN   Office   Transportation - Cargo   South     97,595       1,793       1.84 %   CPI   Nov-2019   Aug-2039
Federal Express Corporation
    100 %   Collierville, TN   Office   Transportation - Cargo   South     97,595       1,793       1.84 %   CPI   Nov-2019   Aug-2039
Federal Express Corporation
    100 %   Collierville, TN   Office   Transportation - Cargo   South     97,595       1,793       1.84 %   CPI   Nov-2019   Aug-2039
Federal Express Corporation
    100 %   Corpus Christi, TX   Warehouse/Distribution   Transportation - Cargo   South     30,212       213       0.22 %   Fixed   May-2012   May-2017
Federal Express Corporation
    100 %   College Station, TX   Warehouse/Distribution   Transportation - Cargo   South     12,080       70       0.07 %   Fixed   Apr-2012   Apr-2017
 
                                                     
Federal Express Corporation Total
                            432,672       7,456       7.65 %            
 
                                                           
CheckFree Corporation
    100 %   Norcross, GA   Office   Business and Commercial Services   South     100,125       2,032       2.09 %   CPI   Dec-2015   Dec-2030
CheckFree Corporation
    100 %   Norcross, GA   Office   Business and Commercial Services   South     68,300       1,724       1.77 %   CPI   Dec-2015   Dec-2030
CheckFree Corporation
    100 %   Norcross, GA   Office   Business and Commercial Services   South     52,250       1,301       1.34 %   CPI   Dec-2015   Dec-2030
CheckFree Corporation
    100 %   Norcross, GA   Land   Business and Commercial Services   South     1       159       0.16 %   CPI   Dec-2015   Dec-2030
 
                                                     
CheckFree Corporation Total
                            220,676       5,216       5.35 %            
 
                                                           
The American Bottling Company
    100 %   Irving, TX   Industrial   Beverages, Food, and Tobacco   South     459,497       2,969       3.05 %   CPI   Jul-2014   Jul-2029
The American Bottling Company
    100 %   Houston, TX   Industrial   Beverages, Food, and Tobacco   South     262,450       1,926       1.98 %   CPI   Jul-2014   Jul-2029
 
                                                     
The American Bottling Company Total
                            721,947       4,895       5.03 %            
 
                                                           
The New York Times Company
    18 %   New York, NY   Office   Media: Printing and Publishing   East     126,420       4,423       4.54 %   Fixed   Mar-2024   Mar-2044
 
                                                           
JP Morgan Chase Bank, N.A.
    100 %   Fort Worth, TX   Office   Banking   South     384,246       3,862       3.96 %   None   Feb-2030   Feb-2050
 
                                                           
Amylin Pharmaceuticals, Inc.
    100 %   San Diego, CA   Office   Business and Commercial Services   West     71,902       1,820       1.87 %   Fixed   Jul-2019   Jul-2029
Amylin Pharmaceuticals, Inc.
    100 %   San Diego, CA   Industrial   Business and Commercial Services   West     72,408       1,820       1.87 %   Fixed   Jul-2019   Jul-2029
 
                                                     
Amylin Pharmaceuticals, Inc. Total
                            144,310       3,641       3.74 %            
 
                                                           
Orbital Sciences Corporation
    100 %   Chandler, AZ   Industrial   Aerospace and Defense   West     355,307       3,307       3.39 %   CPI   Sep-2019   Sep-2029
 
                                                           
US Airways Group, Inc.
    75 %   Tempe, AZ   Office   Transportation - Personal   West     167,890       3,297       3.38 %   CPI   Apr-2014   Nov-2029
 
                                                           
The Titan Corporation
    100 %   San Diego, CA   Office   Electronics   West     166,403       3,055       3.14 %   CPI   Jul-2012   Jul-2017
 
                                                           
Medica France S.A. (a)
    46 %   Paris, France   Other   Healthcare, Education and Childcare   Europe     24,770       669       0.69 %   INSEE (b)   Sep-2021   Sep-2030
Medica France S.A. (a)
    46 %   Sarcelles, France   Other   Healthcare, Education and Childcare   Europe     34,621       669       0.69 %   INSEE (b)   Sep-2021   Sep-2030
Medica France S.A. (a)
    46 %   Chatou, France   Other   Healthcare, Education and Childcare   Europe     24,667       418       0.43 %   INSEE (b)   Sep-2021   Sep-2030
Medica France S.A. (a)
    46 %   Poissy, France   Other   Healthcare, Education and Childcare   Europe     24,593       418       0.43 %   INSEE (b)   Sep-2021   Sep-2030
Medica France S.A. (a)
    46 %   Rosny sous Bois, France   Other   Healthcare, Education and Childcare   Europe     21,847       418       0.43 %   INSEE (b)   Sep-2021   Sep-2030
Medica France S.A. (a)
    46 %   Rueil Malmaison, France   Other   Healthcare, Education and Childcare   Europe     23,814       418       0.43 %   INSEE (b)   Sep-2021   Sep-2030
 
                                                     
Medica France S.A. Total
                            154,312       3,011       3.09 %            
 
                                                           
Bouygues Telecom, S.A.(a)
    75 %   Illkirch-Graffenstaden, France   Office   Telecommunications   Europe     45,459       1,849       1.90 %   INSEE (b)   Feb-2013   Feb-2013
Bouygues Telecom, S.A.(a)
    95 %   Tours, France   Office   Telecommunications   Europe     57,264       1,008       1.03 %   INSEE (b)   Sep-2012   Sep-2012
Bouygues Telecom, S.A.(a)
    75 %   Illkirch-Graffenstaden, France   Office   Telecommunications   Europe     3,689             0.00 %   INSEE (b)   Dec-2015   May-2020
 
                                                     
Bouygues Telecom, S.A. Total
                            106,412       2,857       2.93 %            
 
                                                           
Schuler AG (a)
    33 %   Göppingen, Germany   Industrial   Machinery   Europe     246,380       2,444       2.51 %   CPI   Oct-2027   Oct-2047
 
                                                           
AutoZone, Inc.
    100 %   San Antonio, TX   Retail   Retail Trade   South     5,400       56       0.06 %   None   Aug-2013   Aug-2038
AutoZone, Inc.
    100 %   Albuquerque, NM   Retail   Retail Trade   West     5,400       55       0.06 %   None   Aug-2013   Aug-2038
AutoZone, Inc.
    100 %   Jacksonville, FL   Retail   Retail Trade   South     5,400       54       0.06 %   None   Aug-2013   Aug-2038
AutoZone, Inc.
    100 %   Houston, TX   Retail   Retail Trade   South     5,400       53       0.05 %   None   Aug-2013   Aug-2038
AutoZone, Inc.
    100 %   Gastonia, NC   Retail   Retail Trade   East     5,400       52       0.05 %   None   Jan-2016   Jan-2026

 

23


 

W. P. CAREY & CO. LLC
Detailed Property Summary (Pro rata Basis)
As of June 30, 2011
                                                             
                                    Annualized Contractual                    
                            Square Footage     Minimum Base Rent (in     Percentage of Total              
Tenant/Lease Guarantor   Percent Ownership     Property Location   Property Type   Tenant Industry   Region   (e)     thousands)     Rent (e)     Increase Factor   Lease Expiration   Maximum Term
AutoZone, Inc.
    100 %   Corpus Christi, TX   Retail   Retail Trade   South     6,600       52       0.05 %   None   Jan-2016   Jan-2026
AutoZone, Inc.
    100 %   Statesville, NC   Retail   Retail Trade   East     5,400       51       0.05 %   None   Jan-2016   Jan-2026
AutoZone, Inc.
    100 %   Lenoir, NC   Retail   Retail Trade   East     5,400       51       0.05 %   None   Jan-2016   Jan-2026
AutoZone, Inc.
    100 %   Corpus Christi, TX   Retail   Retail Trade   South     6,480       51       0.05 %   None   Jan-2016   Jan-2026
AutoZone, Inc.
    100 %   Victoria, TX   Retail   Retail Trade   South     6,480       51       0.05 %   None   Jan-2016   Jan-2026
AutoZone, Inc.
    100 %   Lexington, SC   Retail   Retail Trade   East     5,400       50       0.05 %   None   Aug-2013   Aug-2038
AutoZone, Inc.
    100 %   Macon, GA   Retail   Retail Trade   South     5,400       50       0.05 %   None   Aug-2013   Aug-2038
AutoZone, Inc.
    100 %   St. Peters, MO   Retail   Retail Trade   Midwest     5,400       49       0.05 %   Fixed   Aug-2012   Aug-2037
AutoZone, Inc.
    100 %   St. Peters, MO   Retail   Retail Trade   Midwest     6,660       49       0.05 %   Fixed   Aug-2012   Aug-2037
AutoZone, Inc.
    100 %   Jacksonville, FL   Retail   Retail Trade   South     5,400       48       0.05 %   None   Aug-2013   Aug-2038
AutoZone, Inc.
    100 %   Decatur, AL   Retail   Retail Trade   South     5,400       45       0.05 %   None   Feb-2016   Feb-2026
AutoZone, Inc.
    100 %   Phenix City, AL   Retail   Retail Trade   South     5,400       45       0.05 %   None   Feb-2016   Feb-2026
AutoZone, Inc.
    100 %   Mobile, AL   Retail   Retail Trade   South     5,400       45       0.05 %   None   Feb-2016   Feb-2026
AutoZone, Inc.
    100 %   Alton, IL   Retail   Retail Trade   Midwest     5,400       45       0.05 %   None   Feb-2016   Feb-2026
AutoZone, Inc.
    100 %   Belleville, IL   Retail   Retail Trade   Midwest     5,400       45       0.05 %   None   Feb-2016   Feb-2026
AutoZone, Inc.
    100 %   Breckenridge, MO   Retail   Retail Trade   Midwest     5,400       44       0.05 %   None   Feb-2016   Feb-2026
AutoZone, Inc.
    100 %   Chickasaw, AL   Retail   Retail Trade   South     5,400       43       0.04 %   None   Feb-2016   Feb-2026
AutoZone, Inc.
    100 %   Montgomery, AL   Retail   Retail Trade   South     5,400       43       0.04 %   None   Feb-2016   Feb-2026
AutoZone, Inc.
    100 %   Columbus, GA   Retail   Retail Trade   South     5,400       43       0.04 %   None   Feb-2016   Feb-2026
AutoZone, Inc.
    100 %   West Monroe, LA   Retail   Retail Trade   South     5,400       43       0.04 %   None   Feb-2016   Feb-2026
AutoZone, Inc.
    100 %   Baton Rouge, LA   Retail   Retail Trade   South     5,400       43       0.04 %   None   Feb-2016   Feb-2026
AutoZone, Inc.
    100 %   Lake Charles, LA   Retail   Retail Trade   South     6,480       43       0.04 %   None   Feb-2016   Feb-2026
AutoZone, Inc.
    100 %   Lake Charles, LA   Retail   Retail Trade   South     6,480       43       0.04 %   None   Feb-2016   Feb-2026
AutoZone, Inc.
    100 %   Maplewood, MO   Retail   Retail Trade   Midwest     6,480       43       0.04 %   None   Feb-2016   Feb-2026
AutoZone, Inc.
    100 %   Overland, MO   Retail   Retail Trade   Midwest     6,480       43       0.04 %   None   Feb-2016   Feb-2026
AutoZone, Inc.
    100 %   Albany, GA   Retail   Retail Trade   South     5,400       43       0.04 %   None   Aug-2013   Aug-2038
AutoZone, Inc.
    100 %   Charlotte, NC   Retail   Retail Trade   East     5,400       42       0.04 %   None   Jan-2016   Jan-2026
AutoZone, Inc.
    100 %   San Antonio, TX   Retail   Retail Trade   South     5,400       42       0.04 %   None   Jan-2016   Jan-2026
AutoZone, Inc.
    100 %   Farmington, NM   Retail   Retail Trade   West     5,400       41       0.04 %   None   Aug-2013   Aug-2038
AutoZone, Inc.
    100 %   Hammond, LA   Retail   Retail Trade   South     6,480       40       0.04 %   Fixed   Aug-2012   Aug-2037
AutoZone, Inc.
    100 %   Brunswick, GA   Retail   Retail Trade   South     5,400       40       0.04 %   None   Aug-2013   Aug-2038
AutoZone, Inc.
    100 %   Waco, TX   Retail   Retail Trade   South     4,800       38       0.04 %   None   Jan-2016   Jan-2026
AutoZone, Inc.
    100 %   Collinsville, IL   Retail   Retail Trade   Midwest     5,400       36       0.04 %   None   Feb-2016   Feb-2026
AutoZone, Inc.
    100 %   Wood River, IL   Retail   Retail Trade   Midwest     5,400       36       0.04 %   None   Feb-2016   Feb-2026
AutoZone, Inc.
    100 %   St. Louis, MO   Retail   Retail Trade   Midwest     5,400       36       0.04 %   None   Feb-2016   Feb-2026
AutoZone, Inc.
    100 %   Panama City, FL   Retail   Retail Trade   South     5,401       35       0.04 %   Fixed   Aug-2012   Aug-2037
AutoZone, Inc.
    100 %   Jacksonville, FL   Retail   Retail Trade   South     5,000       35       0.04 %   Fixed   Aug-2012   Aug-2037
AutoZone, Inc.
    100 %   Augusta, GA   Retail   Retail Trade   South     5,400       34       0.04 %   None   Aug-2013   Aug-2038
AutoZone, Inc.
    100 %   Bessemer, AL   Retail   Retail Trade   South     5,400       32       0.03 %   None   Feb-2016   Feb-2026
AutoZone, Inc.
    100 %   Austin, TX   Retail   Retail Trade   South     4,000       31       0.03 %   None   Jan-2016   Jan-2026
AutoZone, Inc.
    100 %   Nederland, TX   Retail   Retail Trade   South     4,000       31       0.03 %   None   Jan-2016   Jan-2026
AutoZone, Inc.
    100 %   West Orange, TX   Retail   Retail Trade   South     4,000       31       0.03 %   None   Jan-2016   Jan-2026
AutoZone, Inc.
    100 %   Shelby, NC   Retail   Retail Trade   East     6,660       31       0.03 %   Fixed   Aug-2012   Aug-2037
AutoZone, Inc.
    100 %   Kannapolis, NC   Retail   Retail Trade   East     6,408       24       0.02 %   Fixed   Oct-2015   Oct-2025
AutoZone, Inc.
    100 %   Baton Rouge, LA   Retail   Retail Trade   South     5,401       23       0.02 %   Fixed   Apr-2014   Apr-2019
AutoZone, Inc.
    100 %   Knoxville, TN   Retail   Retail Trade   South     6,660       23       0.02 %   Fixed   May-2014   May-2024
AutoZone, Inc.
    100 %   Baton Rouge, LA   Retail   Retail Trade   South     6,600       22       0.02 %   Fixed   Mar-2014   Mar-2024
AutoZone, Inc.
    100 %   East Ridge, TN   Retail   Retail Trade   South     6,480       21       0.02 %   Fixed   Oct-2013   Oct-2023
AutoZone, Inc.
    100 %   Morgantown, NC   Retail   Retail Trade   East     5,400       19       0.02 %   Fixed   Oct-2015   Aug-2019
 
                                                     
AutoZone, Inc. Total
                            302,230       2,217       2.28 %            
 
                                                           
LIVHO, Inc.
    100 %   Livonia, MI   Hospitality   Hotels and Gaming   Midwest     158,000       2,100       2.16 %   Fixed   Jan-2012   Jan-2012
 
                                                           
Brown Institute, Ltd.
    100 %   Mendota Heights, MN   Other   Healthcare, Education and Childcare   Midwest     136,400       2,069       2.12 %   Fixed   Aug-2011   Aug-2011
 
                                                           
Sybron Dental Specialties, Inc.
    100 %   Romulus, MI   Industrial   Healthcare, Education and Childcare   Midwest     220,000       1,454       1.49 %   CPI   Dec-2018   Dec-2043
Sybron Dental Specialties, Inc.
    100 %   Glendora, CA   Office   Healthcare, Education and Childcare   West     25,000       555       0.57 %   CPI   Dec-2018   Dec-2043
 
                                                     
Sybron Dental Specialties, Inc. Total
                            245,000       2,009       2.06 %            
 
                                                           
Unisource Worldwide, Inc.
    100 %   Commerce, CA   Warehouse/Distribution   Forest Products and Paper   West     411,561       1,564       1.61 %   Fixed   Apr-2020   Apr-2030
Unisource Worldwide, Inc.
    100 %   Anchorage, AK   Warehouse/Distribution   Forest Products and Paper   West     44,712       362       0.37 %   Fixed   Dec-2014   Dec-2029
 
                                                     
Unisource Worldwide, Inc. Total
                            456,273       1,926       1.98 %            
 
                                                           
Eroski Sociedad Cooperativa
    70 %   Mallorca, Spain   Warehouse/Distribution   Retail Trade   Europe     138,383       1,817       1.87 %   3% or CPI   Jun-2030   Jun-2045
 
                                                           
BE Aerospace, Inc.
    100 %   Lenexa, KS   Industrial   Aerospace and Defense   Midwest     130,094       666       0.68 %   Fixed   Sep-2017   Sep-2037
BE Aerospace, Inc.
    100 %   Winston-Salem, NC   Warehouse/Distribution   Aerospace and Defense   East     90,800       268       0.28 %   Fixed   Sep-2017   Sep-2037
BE Aerospace, Inc.
    100 %   Winston-Salem, NC   Industrial   Aerospace and Defense   East     74,026       218       0.22 %   Fixed   Sep-2017   Sep-2037
BE Aerospace, Inc.
    100 %   Winston-Salem, NC   Industrial   Aerospace and Defense   East     50,200       148       0.15 %   Fixed   Sep-2017   Sep-2037
BE Aerospace, Inc.
    100 %   Winston-Salem, NC   Office   Aerospace and Defense   East     43,788       129       0.13 %   Fixed   Sep-2017   Sep-2037
BE Aerospace, Inc.
    100 %   Dallas, TX   Industrial   Aerospace and Defense   South     22,680       127       0.13 %   Fixed   Sep-2017   Sep-2037
BE Aerospace, Inc.
    100 %   Winston-Salem, NC   Industrial   Aerospace and Defense   East     15,402       45       0.05 %   Fixed   Sep-2017   Sep-2037
 
                                                     
BE Aerospace, Inc. Total
                            426,990       1,601       1.64 %            
 
                                                           
Sprint Spectrum Realty Company, L.P.
    100 %   Rio Rancho, NM   Office   Telecommunications   West     94,730       1,530       1.57 %   Fixed   May-2016   May-2021
 
                                                           
Lowe’s Home Improvement Warehouse
    100 %   Bellevue, WA   Retail   Retail Trade   West     143,352       1,524       1.56 %   CPI   Aug-2018   Aug-2018

 

24


 

W. P. CAREY & CO. LLC
Detailed Property Summary (Pro rata Basis)
As of June 30, 2011
                                                             
                                    Annualized Contractual                    
                            Square Footage     Minimum Base Rent (in     Percentage of Total              
Tenant/Lease Guarantor   Percent Ownership     Property Location   Property Type   Tenant Industry   Region   (e)     thousands)     Rent (e)     Increase Factor   Lease Expiration   Maximum Term
World Color Printing (USA) Corp.
    100 %   Doraville, GA   Industrial   Media: Printing and Publishing   South     432,559       1,520       1.56 %   CPI   Dec-2017   Dec-2042
 
                                                           
Cleo, Inc.
    100 %   Memphis, TN   Warehouse/Distribution   Forest Products and Paper   South     614,274       891       0.91 %   CPI   Dec-2011   Dec-2011
Cleo, Inc.
    100 %   Memphis, TN   Warehouse/Distribution   Forest Products and Paper   South     391,896       411       0.42 %   CPI   Dec-2011   Dec-2011
 
                                                     
Cleo, Inc. Total
                            1,006,170       1,302       1.34 %            
 
                                                           
Hologic, Inc.
    36 %   Bedford, MA   Industrial   Electronics   East     74,520       1,035       1.06 %   CPI   Aug-2022   Aug-2042
Hologic, Inc.
    36 %   Danbury, CT   Industrial   Electronics   East     22,335       235       0.24 %   CPI   Aug-2022   Aug-2042
 
                                                     
Hologic, Inc. Total
                            96,855       1,270       1.30 %            
 
                                                           
Anthony’s Manufacturing Company, Inc.
    100 %   San Fernando, CA   Industrial   Consumer and Durable Goods   West     95,420       606       0.62 %   CPI   May-2012   May-2012
Anthony’s Manufacturing Company, Inc.
    100 %   San Fernando, CA   Industrial   Consumer and Durable Goods   West     40,285       256       0.26 %   CPI   May-2012   May-2012
Anthony’s Manufacturing Company, Inc.
    100 %   San Fernando, CA   Industrial   Consumer and Durable Goods   West     39,920       254       0.26 %   CPI   May-2012   May-2012
Anthony’s Manufacturing Company, Inc.
    100 %   San Fernando, CA   Industrial   Consumer and Durable Goods   West     7,220       46       0.05 %   CPI   May-2012   May-2012
 
                                                     
Anthony’s Manufacturing Company, Inc. Total
                            182,845       1,162       1.19 %            
 
                                                           
Fiskars Brands, Inc.
    100 %   Apopka, FL   Industrial   Chemicals, Plastics, Rubber, and Glass   South     260,160       1,108       1.14 %   Fixed   Mar-2015   Mar-2015
Fiskars Brands, Inc.
    100 %   Apopka, FL   Industrial   Chemicals, Plastics, Rubber, and Glass   South     109,377       71       0.07 %   Fixed   Mar-2015   Mar-2015
 
                                                     
Fiskars Brands, Inc. Total
                            369,537       1,179       1.21 %            
 
                                                           
The United States Playing Card Company
    100 %   Erlanger, KY   Warehouse/Distribution   Media: Printing and Publishing   East     409,600       836       0.86 %   Fixed   Jun-2017   Jun-2020
The United States Playing Card Company
    100 %   Erlanger, KY   Warehouse/Distribution   Consumer and Durable Goods   East     162,604       301       0.31 %   Fixed   Jun-2017   Jun-2020
 
                                                     
The United States Playing Card Company Total
                            572,204       1,137       1.17 %            
 
                                                           
OBI Group (a)
    100 %   Wroclaw, Poland   Retail   Retail Trade   Europe     113,570       1,071       1.10 %   CPI   Dec-2025   Dec-2040
 
                                                           
Consolidated Systems, Inc.
    60 %   Columbia, SC   Industrial   Mining, Metals, and Primary Metal Industries   East     294,249       823       0.85 %   Fixed   Oct-2026   Oct-2046
Consolidated Systems, Inc.
    60 %   Columbia, SC   Office   Mining, Metals, and Primary Metal Industries   East     24,459       68       0.07 %   Fixed   Oct-2026   Oct-2046
Consolidated Systems, Inc.
    60 %   Columbia, SC   Warehouse/Distribution   Mining, Metals, and Primary Metal Industries   East     13,792       39       0.04 %   Fixed   Oct-2026   Oct-2046
Consolidated Systems, Inc.
    60 %   Columbia, SC   Warehouse/Distribution   Mining, Metals, and Primary Metal Industries   East     6,266       18       0.02 %   Fixed   Oct-2026   Oct-2046
 
                                                     
Consolidated Systems, Inc. Total
                            338,765       948       0.97 %            
 
                                                           
24 Hour Fitness USA, Inc.
    100 %   Austin, TX   Other   Leisure, Amusement, Entertainment   South     43,935       927       0.95 %   CPI   Jun-2017   Jun-2037
 
                                                           
Sports Wholesale, Inc.
    100 %   Birmingham, AL   Warehouse/Distribution   Retail Trade   South     219,312       924       0.95 %   CPI   Dec-2014   Dec-2029
 
                                                           
NVR, Inc.
    100 %   Thurmont, MD   Industrial   Construction and Building   East     150,468       735       0.75 %   CPI   Apr-2014   Apr-2039
NVR, Inc.
    100 %   Farmington, NY   Industrial   Construction and Building   East     29,273       143       0.15 %   CPI   Apr-2014   Apr-2039
 
                                                     
NVR, Inc. Total
                            179,741       878       0.90 %            
 
                                                           
The SI Organization, Inc.
    100 %   King of Prussia, PA   Office   Business and Commercial Services   East     88,578       864       0.89 %   Fixed   Jul-2013   Jul-2023
 
                                                           
Swat-Fame, Inc.
    100 %   City of Industry, CA   Industrial   Textiles, Leather, and Apparel   West     233,205       851       0.87 %   CPI   Jun-2020   Jun-2020
 
                                                           
SymphonyIRI Group, Inc.
    33 %   Chicago, IL   Office   Business and Commercial Services   Midwest     53,195       791       0.81 %   CPI   Jan-2021   Jan-2021
 
                                                           
United States Postal Service
    100 %   Bloomingdale, IL   Office   Federal, State and Local Government   Midwest     60,000       698       0.72 %   Fixed   Apr-2016   Apr-2016
 
                                                           
Juniper Networks, Inc.
    100 %   Sunnyvale, CA   Industrial   Electronics   West     50,311       646       0.66 %   Fixed   Nov-2011   Nov-2021
 
                                                           
BellSouth Telecommunications, Inc.
    100 %   Fort Lauderdale, FL   Warehouse/Distribution   Telecommunications   South     80,450       613       0.63 %   Fixed   Jun-2016   Jun-2021
 
                                                           
Childtime Childcare, Inc.
    34 %   Alhambra, CA   Other   Healthcare, Education and Childcare   West     2,262       58       0.06 %   CPI   Jan-2016   Jan-2041
Childtime Childcare, Inc.
    34 %   Tustin, CA   Other   Healthcare, Education and Childcare   West     2,264       57       0.06 %   CPI   Jan-2016   Jan-2041
Childtime Childcare, Inc.
    34 %   Canton, MI   Other   Healthcare, Education and Childcare   Midwest     2,311       52       0.05 %   CPI   Jan-2016   Jan-2041
Childtime Childcare, Inc.
    34 %   Chino, CA   Other   Healthcare, Education and Childcare   West     2,166       50       0.05 %   CPI   Jan-2016   Jan-2041
Childtime Childcare, Inc.
    34 %   Carrollton, TX   Other   Healthcare, Education and Childcare   South     2,438       50       0.05 %   CPI   Jan-2016   Jan-2041
Childtime Childcare, Inc.
    34 %   Duncanville, TX   Other   Healthcare, Education and Childcare   South     2,438       50       0.05 %   CPI   Jan-2016   Jan-2041
Childtime Childcare, Inc.
    34 %   Lewisville, TX   Other   Healthcare, Education and Childcare   South     2,440       50       0.05 %   CPI   Jan-2016   Jan-2041
Childtime Childcare, Inc.
    34 %   Garden Grove, CA   Other   Healthcare, Education and Childcare   West     2,848       49       0.05 %   CPI   Jan-2016   Jan-2041
Childtime Childcare, Inc.
    34 %   Tucson, AZ   Other   Healthcare, Education and Childcare   West     2,165       40       0.04 %   CPI   Jan-2016   Jan-2041
Childtime Childcare, Inc.
    34 %   Chandler, AZ   Other   Healthcare, Education and Childcare   West     2,026       38       0.04 %   CPI   Jan-2016   Jan-2041
Childtime Childcare, Inc.
    34 %   Westland, MI   Other   Healthcare, Education and Childcare   Midwest     2,787       38       0.04 %   CPI   Jan-2016   Jan-2041
Childtime Childcare, Inc.
    34 %   Westland, MI   Other   Healthcare, Education and Childcare   Midwest     2,472       29       0.03 %   CPI   Jan-2016   Jan-2041
 
                                                     
Childtime Childcare, Inc. Total
                            28,617       560       0.58 %            
 
                                                           
Common Area (c)
    75 %   Illkirch-Graffens, France   Office   N/A   Europe     7,637       527       0.54 %   None   Mar-2020   Mar-2020
 
                                                           
Jada Toys, Inc.
    100 %   City of Industry, CA   Industrial   Consumer Non-durable Goods   West     92,595       500       0.51 %   Fixed   Apr-2012   Apr-2017
 
                                                           
United Stationers Supply Company
    100 %   San Antonio, TX   Warehouse/Distribution   Forest Products and Paper   South     63,098       256       0.26 %   CPI   Mar-2014   Mar-2017
United Stationers Supply Company
    100 %   New Orleans, LA   Warehouse/Distribution   Forest Products and Paper   South     59,560       241       0.25 %   CPI   Sep-2012   Sep-2012
 
                                                     
United Stationers Supply Company Total
                            122,658       497       0.51 %            
 
                                                           
Alstom Power
    100 %   Erlanger, KY   Warehouse/Distribution   Business and Commercial Services   East     197,400       485       0.50 %   Fixed   Jun-2017   Jun-2020

 

25


 

W. P. CAREY & CO. LLC
Detailed Property Summary (Pro rata Basis)
As of June 30, 2011
                                                             
                                    Annualized Contractual                    
                            Square Footage     Minimum Base Rent (in     Percentage of Total              
Tenant/Lease Guarantor   Percent Ownership     Property Location   Property Type   Tenant Industry   Region   (e)     thousands)     Rent (e)     Increase Factor   Lease Expiration   Maximum Term
Pioneer Credit Recovery, Inc.
    100 %   Moorestown, NJ   Office   Business and Commercial Services   East     30,000       405       0.42 %   Fixed   Apr-2012   Apr-2018
 
                                                           
Lockheed Martin Corporation
    100 %   Webster, TX   Industrial   Business and Commercial Services   South     30,176       309       0.32 %   Fixed   Oct-2011   Jul-2021
Lockheed Martin Corporation
    100 %   Webster, TX   Warehouse/Distribution   Business and Commercial Services   South     8,921       91       0.34 %   Fixed   Dec-2011   Dec-2011
Lockheed Martin Corporation
    100 %   Webster, TX   Industrial   Business and Commercial Services   South     48,207             0.00 %   Fixed   May-2018   May-2025
 
                                                     
Lockheed Martin Corporation Total
                            87,304       400       0.66 %            
 
                                                           
Kmart Corporation
    100 %   Drayton Plains, MI   Retail   Retail Trade   Midwest     103,018       210       0.22 %   None   Mar-2016   Mar-2026
Kmart Corporation
    100 %   Citrus Heights, CA   Retail   Retail Trade   West     89,760       180       0.18 %   None   May-2016   May-2026
 
                                                     
Kmart Corporation Total
                            192,778       390       0.40 %            
 
                                                           
Faurecia Exhaust Systems
    100 %   Toledo, OH   Office   Automobile   Midwest     61,000       387       0.40 %   CPI   Nov-2022   Nov-2022
 
                                                           
S&ME, Inc.
    100 %   Raleigh, NC   Office   Business and Commercial Services   East     27,770       338       0.35 %   Fixed   Jul-2016   Jul-2026
 
                                                           
Wal-Mart Stores, Inc.
    100 %   Greenfield, IN   Warehouse/Distribution   Retail Trade   Midwest     82,620       331       0.34 %   None   Jan-2020   Jan-2025
 
                                                           
Penberthy, Inc.
    100 %   Prophetstown, IL   Industrial   Mining, Metals, and Primary Metal Industries   Midwest     161,878       300       0.31 %   CPI   Apr-2016   Apr-2026
 
                                                           
Richard Design Services, Inc.
    100 %   Beaumont, TX   Office   Business and Commercial Services   South     34,300       300       0.31 %   Other   Feb-2012   May-2012
 
                                                           
Tubular Metal Systems
    100 %   Pinconning, MI   Industrial   Automobile   Midwest     220,588       298       0.31 %   CPI   Jul-2013   Dec-2022
 
                                                           
Qwest Communications, Inc.
    100 %   Scottsdale, AZ   Industrial   Telecommunications   West     2,900       178       0.18 %   Fixed   Feb-2012   Feb-2017
Qwest Communications, Inc.
    100 %   Scottsdale, AZ   Industrial   Telecommunications   West     1,560       96       0.10 %   Fixed   Feb-2012   Feb-2017
 
                                                     
Qwest Communications, Inc. Total
                            4,460       274       0.28 %            
 
                                                           
Deloro Satellite Company, Inc.
    100 %   Goshen, IN   Industrial   Mining, Metals, and Primary Metal Industries   Midwest     52,000       265       0.27 %   Fixed   Feb-2018   Feb-2023
 
                                                           
Multi-Tenant Building
    100 %   Broomfield, CO   Office   Various   West     63,771       227       0.23 %   Various   Various   Various
 
                                                           
Fairpoint Communications, Inc.
    100 %   Milton, VT   Industrial   Telecommunications   East     30,624       221       0.23 %   Fixed   Feb-2013   Feb-2013
 
                                                           
United Space Alliance, LLC
    100 %   Webster, TX   Warehouse/Distribution   Business and Commercial Services   South     36,629       211       0.22 %   None   Sep-2013   Sep-2013
United Space Alliance, LLC
    100 %   Webster, TX   Warehouse/Distribution   Business and Commercial Services   South     32,503             0.00 %   None   Sep-2013   Sep-2013
 
                                                     
United Space Alliance, LLC
    100 %   Webster, TX   Warehouse/Distribution   Business and Commercial Services   South     69,132       211       0.22 %   None   Sep-2013   Sep-2013
 
                                                           
Lincoln Technical Institute, Inc.
    100 %   Moorestown, NJ   Office   Healthcare, Education and Childcare   East     35,567       209       0.21 %   Fixed   Apr-2025   Apr-2025
 
                                                           
Continental Airlines, Inc.
    100 %   Houston, TX   Warehouse/Distribution   Transportation - Personal   South     25,125       207       0.21 %   Fixed   Jul-2013   Jul-2013
 
                                                           
Candle Lamp Company, LLC
    100 %   Memphis, TN   Warehouse/Distribution   Consumer Non-durable Goods   South     75,000       190       0.19 %   CPI   Mar-2014   Mar-2014
 
                                                           
Xerox Corporation
    100 %   Hot Springs, AR   Retail   Machinery   South     36,850       179       0.18 %   Fixed   Mar-2014   Mar-2017
 
                                                           
Golder Associates Inc.
    100 %   Houston, TX   Office   Business and Commercial Services   South     8,066       56       0.06 %   Fixed   Oct-2017   Oct-2022
Golder Associates Inc.
    100 %   Houston, TX   Office   Business and Commercial Services   South     7,730       54       0.06 %   Fixed   Oct-2017   Oct-2022
 
                                                     
Golder Associates Inc. Total
                            15,796       110       0.11 %            
 
                                                           
Kenyon International Emergency Services
    100 %   Houston, TX   Warehouse/Distribution   Healthcare, Education and Childcare   South     17,725       96       0.10 %   None   Oct-2014   Oct-2019
 
                                                           
Raytheon Company
    100 %   Webster, TX   Industrial   Business and Commercial Services   South     9,138       89       0.09 %   Fixed   Jul-2011   Jul-2025
 
                                                           
Moran Foods, Inc.
    100 %   Montgomery, AL   Retail   Beverages, Food, and Tobacco   South     32,690       53       0.05 %   None   Oct-2017   Oct-2037
 
                                                           
Olmsted Kirk Paper Co.
    100 %   Beaumont, TX   Office   Forest Products and Paper   South     5,760       47       0.05 %   Fixed   Dec-2017   Dec-2022
 
                                                           
RGIS, LLC
    100 %   Bloomingdale, IL   Office   Business and Commercial Services   Midwest     2,550       46       0.05 %   Fixed   Nov-2011   Nov-2011
 
                                                           
SBH Holdings, LLC
    100 %   Houston, TX   Office   Healthcare, Education and Childcare   South     5,632       44       0.05 %   Fixed   Aug-2013   Aug-2016
 
                                                           
Cypress Creek Partners, LLC
    100 %   Little Rock, AR   Retail   Grocery   South     21,932       35       0.04 %   None   Mar-2017   Mar-2022
 
                                                           
Jerry Prater Trucking Incorporated
    100 %   Salisbury, NC   Industrial   Transportation - Cargo   East     13,284       28       0.03 %   Fixed   Sep-2011   Sep-2012
 
                                                           
Classic Cuisines Catering
    100 %   Bloomingdale, IL   Office   Hotels and Gaming   Midwest     1,000       10       0.01 %   None   Apr-2012   Apr-2012
 
                                                           
Action Buys Cars, Inc. (c)
    100 %   Montgomery, AL   Retail   Retail Trade   South     1       10       0.01 %   None   MTM   MTM
 
                                                           
Google, Inc.
    100 %   Venice, CA   Office   Telecommunications   West     67,681             0.00 %   Fixed   Oct-2025   Oct-2035
 
                                                           
Groupe SOFEMO
    100 %   Illkirch-Graffenstaden, France   Office   Business and Commercial Services   Europe     16,631             0.00 %   INSEE (b)   Jan-2014   Jan-2020
 
                                                           
Common Area Space (c)
    100 %   Bloomingdale, IL   Office   N/A   Midwest     14,084             0.00 %   None   Apr-2016   Apr-2016

 

26


 

W. P. CAREY & CO. LLC
Detailed Property Summary (Pro rata Basis)
As of June 30, 2011
                                                             
                                    Annualized Contractual                    
                            Square Footage     Minimum Base Rent (in     Percentage of Total              
Tenant/Lease Guarantor   Percent Ownership     Property Location   Property Type   Tenant Industry   Region   (e)     thousands)     Rent (e)     Increase Factor   Lease Expiration   Maximum Term
SUPINFO International University
    100 %   Illkirch-Graffenstaden, France   Office   N/A   Europe     6,999             0.00 %   None   Mar-2019   Mar-2019
 
                                                           
Common Area (c)
    95 %   Tours, France   Office   N/A   Europe     5,828             0.00 %   None   Sep-2012   Sep-2012
 
                                                           
Vacant
    100 %   Charlotte, NC   Industrial   N/A   East     437,500                 N/A   N/A   N/A
Vacant
    100 %   Salisbury, NC   Warehouse/Distribution   N/A   East     297,681                 N/A   N/A   N/A
Vacant
    100 %   Jacksonville, FL   Warehouse/Distribution   N/A   South     240,000                 N/A   N/A   N/A
Vacant
    100 %   Bridgeton, MO   Office   N/A   Midwest     78,080                 N/A   N/A   N/A
Vacant
    100 %   Webster, TX   Warehouse/Distribution & Industrial   N/A   South     34,804                 N/A   N/A   N/A
Vacant
    100 %   Broomfield, CO   Office   N/A   West     48,966                 N/A   N/A   N/A
Vacant
    95 %   Tours, France   Office   N/A   Europe     38,940                 N/A   N/A   N/A
Vacant
    100 %   Bloomingdale, IL   Office   N/A   Midwest     38,366                 N/A   N/A   N/A
Vacant
    100 %   Brewton, AL   Retail   N/A   South     30,625                 N/A   N/A   N/A
Vacant
    100 %   Houston, TX   Warehouse/Distribution & Office   N/A   South     28,213                 N/A   N/A   N/A
Vacant
    100 %   Beaumont, TX   Office   N/A   South     8,580                 N/A   N/A   N/A
 
                                                     
Vacant Total
                            1,281,755                          
 
                                                           
Grand Total (d)
                            14,054,395     $ 97,409       100 %            
 
                                                     
     
(a)  
Rents reflect a conversion rate of 1.4391 EUR/USD as of June 30, 2011.
 
(b)  
INSEE construction index, an index published quarterly by the French Government.
 
(c)  
Tenant is occupying property on a month-to-month (MTM) basis.
 
(d)  
Excludes 21 domestic self-storage properties in our Carey Storage subsidiary, totaling approximately 1.5 million square feet.
 
(e)  
Numbers may not add due to rounding.

 

27