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W. P. Carey Announces Second Quarter 2013 Financial Results

Aug 6, 2013

NEW YORK, Aug. 6, 2013 /PRNewswire/ -- W. P. Carey Inc. (NYSE: WPC), a real estate investment trust ("REIT"), today reported financial results for the second quarter ended June 30, 2013.

(Logo:  http://photos.prnewswire.com/prnh/20130604/NY25517LOGO-b)

During the second quarter of 2013, the Company:

  • Reported Funds from operations—as adjusted ("AFFO") of $1.05 per diluted share
  • Acquired three properties for approximately $113 million
  • Structured $305 million of investments on behalf of the Managed REITs
  • Raised its annualized dividend rate to $3.36 per share, WPC's 49th consecutive quarterly increase

Subsequent to the second quarter, the Company:

  • Announced a merger agreement with Corporate Property Associates 16 – Global Incorporated ("CPA®:16 – Global")
  • Structured $196 million of investments on behalf of the Managed REITs through August 1, 2013
  • Entered into a new unsecured term loan agreement of $300 million and used the proceeds primarily to repay the $250 million outstanding on its existing Revolving Credit Facility on July 31, 2013

QUARTERLY RESULTS

  • AFFO for the second quarter of 2013 was $72.6 million or $1.05 per diluted share, compared to $27.8 million or $0.68 per diluted share for the second quarter of 2012. AFFO for the six months ended June 30, 2013 was $144.9 million or $2.07 per diluted share, compared to $67.9 million or $1.66 per diluted share for the comparable period in 2012. The increased AFFO in the three and six months ended June 30, 2013 as compared to the same periods in 2012 was primarily due to income from the properties we acquired in our merger with CPA®:15 on September 28, 2012 (the "CPA®:15 Merger") partially offset by the cessation of asset management revenue received from CPA®:15 after the CPA®:15 Merger was completed. Per share data for the 2013 periods also reflects the issuance of 28.2 million shares in connection with the CPA®:15 Merger to the stockholders of CPA®:15. Further information concerning AFFO, a non-GAAP supplemental performance metric, is presented in the accompanying tables and related notes.
  • Total revenues net of reimbursed expenses for the second quarter of 2013 were $103.6 million, compared to $46.6 million for the second quarter of 2012. Total revenues net of reimbursed expenses for the six months ended June 30, 2013 were $204.1 million, compared to $96.2 million for the comparable period in 2012. Reimbursed expenses are excluded from total revenues because they have no impact on net income.
  • Net Income for the second quarter of 2013 was $43.2 million, compared to $31.8 million for the same period in 2012. Net Income for the six months ended June 30, 2013 was $57.3 million, compared to $44.1 million for the prior year period.
  • For the quarter ended June 30, 2013, we received approximately $15.6 million in cash distributions from our equity ownership in the CPA® REITs including $8.7 million in Available Cash distributions related to our special general partnership interests in the CPA® REITs.

Proposed Merger with CPA®:16 – GLOBAL

  • On July 25, 2013, we announced that our Board of Directors and the Board of Directors of our publicly held, non-traded REIT affiliate CPA®:16 – Global, had each unanimously approved a merger agreement pursuant to which CPA®:16 – Global will merge with and into a subsidiary of W. P. Carey in a transaction valued at approximately $4.0 billion, including debt.
  • Following the proposed merger, the combined company is expected to have an equity market capitalization of approximately $6.5 billion and a total enterprise value of approximately $10.1 billion. The combined portfolio will consist of more than 700 properties with 86 million square feet of corporate real estate leased to 231 companies around the world.
  • The proposed merger is subject to SEC review and the approvals of the stockholders of each of W. P. Carey and CPA®:16 – Global. CPA®:16 – Global has a 30-day go-shop period. We currently expect that the closing will occur in the first quarter of 2014, although there can be no assurance that the transaction will close at such time, if at all.

W. P. CAREY OWNED PORTFOLIO UPDATE

  • In April 2013, W. P. Carey acquired the main European distribution center of the Tommy Hilfiger Group for approximately €27 million ($35 million). The 473,437 square foot facility is located in Venlo, Netherlands and is subject to an existing net lease with Tommy Hilfiger Europe B.V., which has been owned since 2010 by PVH Corp, one of the world's largest apparel companies.
  • In June 2013, W. P. Carey acquired the research and development ("R&D") and class-A office facilities of Cargotec Corporation for approximately €40 million ($52 million). The 183,567 square foot facility is located in Tampere, Finland and is subject to a 20-year net lease with Cargotec. Cargotec is a Finnish public company that develops and manufactures cargo-handling machinery for ships, ports, terminals and local distribution. It operates in 120 countries, employs approximately 10,000 personnel globally and generated more than €3.3 billion ($4.3 billion) in revenues in 2012.
  • In June 2013, W. P. Carey acquired the corporate headquarters of the Arbella Insurance Group for approximately $26 million. Located in Quincy, Massachusetts, the 132,160 square foot office facility is subject to an existing 14-year net lease with the company.
  • During the second quarter of 2013, W. P. Carey disposed of four properties for total proceeds of $38 million.
  • The W. P. Carey owned portfolio currently consists of 423 leased properties comprising 39.5 million square feet leased to approximately 123 corporate tenants. The average lease term of the portfolio is 8.8 years and the occupancy rate is approximately 98.9%.

W. P. CAREY MANAGED PORTFOLIO UPDATE

  • W. P. Carey is the advisor to the CPA® REITs and Carey Watermark Investors Incorporated ("CWI"), which had aggregate real estate assets of $6.4 billion, cash of approximately $0.8 billion and total assets of $8.8 billion as of June 30, 2013. The average occupancy rate for the 77.3 million square feet owned by the CPA® REITs was approximately 98.8%.

CPA®:17 – GLOBAL ACTIVITY

    • During the second quarter of 2013, we structured $113 million of new investments on behalf of CPA®:17 – Global, including two self-storage transactions totaling $87 million.
    • In July 2013, we completed two sale-leaseback transactions totaling €95 million ($123 million) on behalf of CPA®:17 – Global, including an H&M Hennes & Mauritz AB logistics facility in Poznan, Poland for €64 million ($83 million) and the new European R&D center for Royal FreislandCampina NV in Wageningen, the Netherlands for €31 million ($40 million).

CPA®:18 – GLOBAL ACTIVITY

    • In May 2013, we announced that the registration statement for CPA®:18 – Global had been declared effective by the Securities and Exchange Commission ("SEC") and that CPA®:18 - Global had commenced a capital raise of up to $1 billion.

CAREY WATERMARK INVESTORS ACTIVITY

    • From the beginning of its initial public offering through June 30, 2013, CWI, our lodging-focused non-traded REIT offering, has raised approximately $366 million.
    • During the second quarter of 2013, CWI invested in two hotels for a total of approximately $198 million. Investments included the 247-room Hutton Hotel in Nashville, TN for a total investment of $77 million, which includes $4 million of planned capital improvements, and the 226-room Holiday Inn® Manhattan 6th Avenue for a total investment of $121 million, which includes $8 million of planned capital improvements.
    • In July 2013, CWI acquired a joint venture interest in the 226-room Fairmont Sonoma Mission Inn & Spa from Fairmont Hotels & Resorts. CWI's interest in the joint venture, which represents a total investment of $97 million, is 75% percent while Fairmont will retain a 25% ownership interest. Also in July 2013, CWI sold its 49% interest in a joint venture owning two hotels located in Long Beach, CA for approximately $23 million.

DIVIDENDS

  • The W. P. Carey Board of Directors raised the quarterly cash dividend to $0.84 per share for the second quarter of 2013. This represents a 2.4% increase from the first quarter of 2013 and a 48% increase over the second quarter of 2012. The dividend—our 49th consecutive quarterly increase—was paid on July 15, 2013 to stockholders of record as of July 1, 2013.

W. P. Carey President and CEO Trevor Bond, noted, "We are very pleased with both our second quarter results and the announcement of our proposed merger with CPA®:16 – Global, another milestone transaction which will significantly increase our real estate assets under ownership and reinforce our status as a leading global net-lease REIT. As we have for four decades, we will continue to focus on our strategy of disciplined investing in order to generate stable and growing cash flows and dividend income for our investors."

Conference Call and Audio Webcast Scheduled for 11:00 AM (ET)
Please call at least 10 minutes prior to call to register. 
Time: Tuesday, August 6, 2013 at 11:00 AM (ET) 
Call-in Number: 800-860-2442 
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Webcast: www.wpcarey.com/earnings
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Replay available until September 22, 2013 at 9:00 AM (ET).

W. P. Carey Inc.
Celebrating its 40th anniversary, W. P. Carey Inc. is a publicly traded REIT (NYSE: WPC) that provides long-term sale-leaseback and build-to-suit financing for companies worldwide and owns and manages an investment portfolio totaling approximately $15.4 billion. The largest owner/manager of net lease assets, WPC's corporate finance-focused credit and real estate underwriting process is a constant that has been successfully leveraged across a wide variety of industries and property types. Its portfolio of long-term leases with creditworthy tenants has an established history of generating stable cash flows that have enabled the Company to deliver consistent dividend income to investors for nearly four decades. www.wpcarey.com

This press release contains forward-looking statements within the meaning of the Federal securities laws. Examples of such forward-looking statements include, but are not limited to, the statements made by Mr. Bond. A number of factors could cause W. P. Carey's actual results, performance or achievement to differ materially from those anticipated. Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for office and industrial properties; interest rate levels; the availability of financing; and other risks associated with the acquisition and ownership of properties, including risks that the tenants will not pay rent, or that costs may be greater than anticipated. For further information on factors that could impact W. P. Carey, reference is made to W. P. Carey's filings with the Securities and Exchange Commission.

COMPANY CONTACT:

PRESS CONTACTS:

 

Kristin Brown

Cheryl Sanclemente

Guy Lawrence

W. P. Carey Inc.

W. P. Carey Inc.

Ross & Lawrence

212-492-8989

212-492-8995

212-308-3333

kbrown@wpcarey.com 

csanclemente@wpcarey.com 

gblawrence@rosslawpr.com

 

W. P. CAREY INC.

 

Financial Highlights (Unaudited)

(in thousands, except per share amounts)

 

These financial highlights include the non-GAAP financial measure, funds from operations – as adjusted ("AFFO"). A description of this non-GAAP financial measure and a reconciliation to the most directly comparable GAAP measure is provided on the following pages.

 
 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2013

 

2012

 

2013

 

2012

Net Income

$

43,167

 

$

31,777

 

$

57,348

 

$

44,067

                       

AFFO from real estate ownership

$

72,302

 

$

27,883

 

$

135,258

 

$

56,717

AFFO from investment management

 

336

   

(62)

   

9,635

   

11,175

Total AFFO

$

72,638

 

$

27,821

 

$

144,893

 

$

67,892

                       

Per Share (Diluted)

                     

   Net Income

$

0.62

 

$

0.77

 

$

0.81

 

$

1.06

                       

   AFFO from real estate ownership

$

1.05

 

$

0.69

 

$

1.93

 

$

1.40

   AFFO from investment management

 

-

   

(0.01)

   

0.14

   

0.26

   Total AFFO

$

1.05

 

$

0.68

 

$

2.07

 

$

1.66

                       

 

 

 

W. P. CAREY INC.

                   

Consolidated Balance Sheets (Unaudited)

(in thousands)

                   
         

June 30, 2013

 

December 31, 2012

Assets

         

Investments in real estate:

         
   

Real estate, at cost

$

2,450,868

 

$

2,334,488

   

Operating real estate, at cost

 

98,756

   

99,703

   

Accumulated depreciation

 

(165,009)

   

(136,068)

Net investments in properties

 

2,384,615

   

2,298,123

Net investments in direct financing leases

 

360,701

   

376,005

Assets held for sale

 

21,256

   

1,445

Equity investments in real estate and the Managed REITs

 

559,361

   

565,626

Net investments in real estate

 

3,325,933

   

3,241,199

Cash

 

62,765

   

123,904

Due from affiliates

 

28,670

   

36,002

Goodwill

 

328,011

   

329,132

In place lease, net

 

465,931

   

447,278

Above-market rent, net

 

269,355

   

279,885

Other intangible assets, net

 

12,256

   

10,200

Other assets, net

 

142,439

   

141,442

       

Total assets

$

4,635,360

 

$

4,609,042

                   

Liabilities and Equity

         

Liabilities:

         

Non-recourse debt

$

1,686,155

 

$

1,715,397

Senior credit facility

 

385,000

   

253,000

Accounts payable, accrued expenses and other liabilities

 

272,595

   

265,132

Income taxes, net

 

13,458

   

24,959

Distributions payable

 

58,036

   

45,700

       

Total liabilities

 

2,415,244

   

2,304,188

Redeemable noncontrolling interest

 

7,082

   

7,531

Redeemable securities - related party

 

-

   

40,000

           

Equity:

         

W. P. Carey stockholders' equity:

         

Common stock

 

69

   

69

Preferred stock (None issued)

 

-

   

-

Additional paid-in capital

 

2,234,450

   

2,175,820

Distributions in excess of accumulated earnings

 

(233,107)

   

(172,182)

Deferred compensation obligation

 

13,411

   

8,358

Accumulated other comprehensive loss

 

(2,984)

   

(4,649)

Less, treasury stock at cost

 

(60,270)

   

(20,270)

       

Total W. P. Carey stockholders' equity

 

1,951,569

   

1,987,146

Noncontrolling interests

 

261,465

   

270,177

       

Total equity

 

2,213,034

   

2,257,323

       

Total liabilities and equity

$

4,635,360

 

 

$

4,609,042

 

 

 

W. P. CAREY INC.

                           

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(in thousands, except share and per share amounts)

                           
     

Three Months Ended June 30,

 

Six Months Ended June 30,

     

2013

 

2012

 

2013

 

2012

Revenues

                     
 

Lease revenues:

                     
   

Rental income

$

66,498

 

$

14,554

 

$

131,417

 

$

29,188

   

Interest income from direct financing leases

 

9,412

   

1,913

   

18,924

   

4,038

 

Total lease revenues

 

75,910

   

16,467

   

150,341

   

33,226

 

Asset management revenue from affiliates

 

10,355

   

15,636

   

20,369

   

31,238

 

Structuring revenue from affiliates

 

6,422

   

3,622

   

12,764

   

11,260

 

Dealer manager fees

 

2,320

   

4,080

   

3,542

   

7,867

 

Reimbursed costs from affiliates

 

15,467

   

20,484

   

27,435

   

39,221

 

Other real estate income

 

8,582

   

6,810

   

17,110

   

12,569

       

119,056

   

67,099

   

231,561

   

135,381

Operating Expenses

                     
 

General and administrative

 

30,250

   

26,581

   

59,223

   

53,491

 

Reimbursable costs

 

15,467

   

20,484

   

27,435

   

39,221

 

Depreciation and amortization

 

30,927

   

6,424

   

61,454

   

12,881

 

Property expenses

 

5,531

   

3,025

   

10,602

   

5,055

 

Other real estate expenses

 

2,782

   

2,431

   

5,515

   

4,930

 

Impairment charges

 

-

   

-

   

1,071

   

-

       

84,957

   

58,945

   

165,300

   

115,578

Other Income and Expenses

                     
 

Other interest income

 

316

   

155

   

686

   

658

 

Net income from equity investments in real estate and the Managed REITs

 

32,541

   

28,345

   

43,197

   

42,331

 

Other income and (expenses)

 

1,877

   

1,216

   

2,969

   

1,524

 

Interest expense

 

(26,912)

   

(7,128)

   

(53,706)

   

(14,408)

       

7,822

   

22,588

   

(6,854)

   

30,105

 

Income from continuing operations before income taxes

 

41,921

   

30,742

   

59,407

   

49,908

 

Benefit from income taxes

 

1,122

   

1,882

   

2,355

   

187

 

Income from continuing operations

 

43,043

   

32,624

   

61,762

   

50,095

Discontinued Operations

                     
 

Income (loss) from operations of discontinued properties

 

3,118

   

(93)

   

3,306

   

11

 

Gain (loss) on sale of real estate

 

1,313

   

(298)

   

382

   

(479)

 

Gain on extinguishment of debt

 

13

   

-

   

84

   

-

 

Impairment charges

 

(1,671)

   

(1,003)

   

(3,879)

   

(6,728)

 

Income (loss) from discontinued operations, net of tax

 

2,773

   

(1,394)

   

(107)

   

(7,196)

Net Income

 

45,816

   

31,230

   

61,655

   

42,899

 

Net (income) loss attributable to noncontrolling interests

 

(2,692)

   

480

   

(4,400)

   

1,058

 

Add: Net loss attributable to redeemable noncontrolling interest

 

43

   

67

   

93

   

110

Net Income Attributable to W. P. Carey

$

43,167

 

 

$

31,777

 

 

$

57,348

 

$

44,067

                         

Basic Earnings Per Share

                     
 

Income from continuing operations attributable to W. P. Carey

$

0.59

 

$

0.82

 

$

0.83

 

$

1.26

 

Income (loss) from discontinued operations attributable to W. P. Carey

 

0.04

   

(0.04)

   

-

   

(0.18)

 

Net income attributable to W. P. Carey

$

0.63

 

$

0.78

 

$

0.83

 

$

1.08

                           

Diluted Earnings Per Share

                     
 

Income from continuing operations attributable to W. P. Carey

$

0.58

 

$

0.80

 

$

0.82

 

$

1.23

 

Income (loss) from discontinued operations attributable to W. P. Carey

 

0.04

   

(0.03)

   

(0.01)

   

(0.17)

 

Net income attributable to W. P. Carey

$

0.62

 

$

0.77

 

$

0.81

 

$

1.06

                           

Weighted Average Shares Outstanding

                     
 

Basic

68,406,771

 

40,047,220

 

68,776,108

 

40,218,677

 

Diluted

69,493,902

 

40,757,055

 

69,870,849

 

40,828,646

                           

Amounts Attributable to W. P. Carey

                     
 

Income from continuing operations, net of tax

$

40,419

 

$

33,171

 

$

57,506

 

$

51,263

 

Income (loss) from discontinued operations, net of tax

 

2,748

   

(1,394)

   

(158)

   

(7,196)

 

Net income attributable to W. P. Carey

$

43,167

 

$

31,777

 

$

57,348

 

$

44,067

                           

 

 

W. P. CAREY INC.

 

Reconciliation of Net Income to Funds From Operations –– as adjusted (AFFO) (Unaudited)

(in thousands, except share and per share amounts)

 
                             
       

Three Months Ended June 30,

 

Six Months Ended June 30,

       

2013

 

2012

 

2013

 

2012

Real Estate Ownership

                     

Net income from real estate ownership attributable to W. P. Carey

$

43,107

 

$

28,367

 

$

59,799

 

$

37,460

 

Adjustments:

                     
   

Depreciation and amortization of real property

 

30,170

   

5,673

   

59,857

   

11,820

   

Impairment charges

 

1,671

   

1,003

   

4,950

   

6,728

   

Gain on sale of real estate, net

 

(981)

   

(1,686)

   

(50)

   

(1,505)

   

Proportionate share of adjustments to equity in net income of

   partially-owned entities to arrive at FFO

 

(16,304)

   

(14,827)

   

(13,150)

   

(13,787)

   

Proportionate share of adjustments for noncontrolling interests

   to arrive at FFO

 

(4,247)

   

(434)

   

(8,514)

   

(868)

     

Total adjustments

 

10,309

   

(10,271)

   

43,093

   

2,388

FFO (as defined by NAREIT) - Real Estate Ownership

 

53,416

   

18,096

   

102,892

   

39,848

 

Adjustments:

                     
   

Loss on extinguishment of debt

 

(141)

   

-

   

(67)

   

-

   

Other gains, net

 

-

   

-

   

(270)

   

-

   

Other depreciation, amortization and non-cash charges

 

(515)

   

235

   

285

   

24

   

Stock-based compensation

 

911

   

-

   

1,085

   

-

   

Deferred tax expense

 

(21)

   

(532)

   

(1,046)

   

(1,184)

   

Acquisition expenses (a)

 

2,909

   

-

   

2,909

   

-

   

Realized losses on foreign currency, derivatives and other (b)

 

102

   

542

   

154

   

542

   

Amortization of deferred financing costs

 

549

   

402

   

1,060

   

866

   

Straight-line and other rent adjustments

 

(2,277)

   

(883)

   

(4,446)

   

(1,998)

   

Above- and below-market rent intangible lease 
   amortization, net (b)

 

7,237

   

111

   

14,493

   

111

   

Merger expenses

 

218

   

2,616

   

329

   

4,719

   

Proportionate share of adjustments to equity in net income of

   partially-owned entities to arrive at AFFO

 

279

   

(366)

   

557

   

(779)

   

   AFFO adjustments to equity earnings from equity investments

 

10,718

   

7,687

   

19,967

   

14,613

   

Proportionate share of adjustments for noncontrolling interests to

   arrive at AFFO

 

(1,083)

   

(25)

   

(2,644)

   

(45)

     

Total adjustments

 

18,886

   

9,787

   

32,366

   

16,869

AFFO - Real Estate Ownership

$

72,302

 

$

27,883

 

$

135,258

 

$

56,717

                             

Investment Management

                     

Net income (loss) from investment management attributable to
W. P. Carey

$

60

 

$

3,410

 

$

(2,451)

 

$

6,607

FFO (as defined by NAREIT) - Investment Management

$

60

 

$

3,410

 

$

(2,451)

 

$

6,607

 

Adjustments:

                     
   

Other depreciation, amortization and other non-cash charges

 

253

   

229

   

515

   

488

   

Stock-based compensation

 

7,518

   

4,495

   

16,493

   

9,755

   

Deferred tax expense

 

(7,815)

   

(8,459)

   

(5,562)

   

(6,223)

   

Realized gains (losses) on foreign currency (b)

 

2

   

(23)

   

4

   

(23)

   

Amortization of deferred financing costs

 

318

   

286

   

636

   

571

     

Total adjustments

 

276

   

(3,472)

   

12,086

   

4,568

AFFO - Investment Management

$

336

 

$

(62)

 

$

9,635

 

$

11,175

                             

Total Company

                     

FFO (as defined by NAREIT)

$

53,476

 

$

21,506

 

$

100,441

 

$

46,455

FFO (as defined by NAREIT) per diluted share

 

0.77

   

0.53

   

1.44

   

1.14

AFFO

$

72,638

 

$

27,821

 

$

144,893

 

$

67,892

AFFO per diluted share

 

1.05

   

0.68

   

2.07

   

1.66

Diluted weighted average shares outstanding

 

69,493,902

   

40,757,055

   

69,870,849

   

40,828,646

__________

 

(a)  

Prior to the second quarter of 2013, this amount was insignificant and therefore not included in the AFFO calculation.

(b)   

These adjustments are significant and recurring subsequent to the Merger and were not included in the AFFO calculation for the three and six months ended June 30, 2012.

Non-GAAP Financial Disclosure

 

Funds from operations ("FFO") is a non-GAAP measure defined by the National Association of Real Estate Investment Trusts ("NAREIT"). NAREIT defines FFO as net income or loss (as computed in accordance with GAAP) excluding: depreciation and amortization expense from real estate assets, impairment charges on real estate, gains or losses from sales of depreciated real estate assets and extraordinary items; however FFO related to assets held for sale, sold or otherwise transferred and included in the results of discontinued operations are included. These adjustments also incorporate the pro rata share of unconsolidated subsidiaries. FFO is used by management, investors and analysts to facilitate meaningful comparisons of operating performance between periods and among our peers. Although NAREIT has published this definition of FFO, companies often modify this definition as they seek to provide financial measures that meaningfully reflect their distinctive operations. We modify the NAREIT computation of FFO to include other adjustments to GAAP net income to adjust for certain non-cash charges such as amortization of intangibles, deferred income tax benefits and expenses, straight-line rents, stock compensation, gains or losses from extinguishment of debt and deconsolidation of subsidiaries and unrealized foreign currency exchange gains and losses. Our assessment of our operations is focused on long-term sustainability and not on such non-cash items, which may cause short-term fluctuations in net income but have no impact on cash flows. Additionally, we exclude expenses related to the CPA®:15 Merger and realized gain/losses on foreign exchange and derivatives which are not considered fundamental attributes of our business plan and do not affect our overall long-term operating performance. We refer to our modified definition of FFO as AFFO. We exclude these items from GAAP net income as they are not the primary drivers in our decision making process and excluding those items provides investors a view of our portfolio performance over time and make it more comparable to other REITs which are currently not engaged in acquisitions and mergers. We use AFFO as one measure of our operating performance when we formulate corporate goals, evaluate the effectiveness of our strategies, and determine executive compensation. We believe that AFFO is a useful supplemental measure for investors to consider because it will help them to better assess the sustainability of our operating performance without potentially distorting the impact of these short-term fluctuations. However, there are limits on the usefulness of AFFO to investors. For example, impairment charges and unrealized foreign currency losses that we exclude may become actual realized losses upon the ultimate disposition of the properties in the form of lower cash proceeds or other considerations.

 

 

SOURCE W. P. Carey Inc.

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