DuGan is upbeat about WP Carey's quarterly dip.

Investment firm W. P. Carey & Co. LLC reported financial results for the three and nine-month periods ended September 30, 2005.

The results were lower than in the comparable periods of 2004, primarily as a result of fees earned from the merger of two of its managed affiliated real estate investment trusts.

In September 2004, W. P. Carey liquidated its managed affiliated REIT, Carey Institutional Properties, Incorporated, through a merger with Corporate Property Associates 15, Incorporated, which resulted in additional revenue of $42.1 million from incentive and subordinated disposition fees, additional revenue of $11.5 million in structuring fees and resulting increases in W. P. Carey's net income, earnings per share, earnings from continuing operations, revenues, funds from operations and cash flows from operating activities.

In addition W.P. Carey acquired approximately $142 million of net leased properties from CIP[R].

Net income for the three-month period was $14.3 million, as compared to $35.2 million during the similar period in 2004.

Diluted earnings per share (EPS) for the three-month period were $0.37, as compared to $0.90 during the same period in 2004. Funds from Operations (FFO) for the three-month period were $0.66 per diluted share, or $25.6 million, as compared to $1.54 per diluted share, or $60.0 million for the comparable period in 2004. FFO for the nine-month period were $1.90 per diluted share, or $74.3 million, as compared to $2.95 per diluted share, or $114.5 million for the similar period a year ago.

Gordon F. DuGan, President and CEO of W. P. Carey, said, "The effects of the merger ... make comparison of our quarterly and nine-month results for 2005 and 2004 challenging.

"Nonetheless, it is worth noting that, excluding the fees received in that merger, revenues for the third quarter and first nine months of 2005 remained at similar levels to those for 2004. This reflects in part the growth in asset management fees ... which reflect the significant growth in assets under management from approximately $5.2 billion in September 2004 to approximately $6 billion at the end of the third quarter of 2005.

"We continue to look for opportunities to take advantage of current market conditions in a number of areas. We are pleased with the growth of our international investments and believe our continued success lies in our ability to balance attractive yield investments for our shareholders, while providing companies around the world with long-term financing solutions."