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Earnings per share up 25% for W.P. Carey & Co.

Investment firm W. P. Carey & Co. LLC reported fourth quarter and full year 2002 financial results for the three and 12-month periods ended Dec. 31.

Among operating highlights were:

* Diluted earnings per share (EPS) for the year ended Dec. 31 increased by 25% to $1.28 up from $1.02 for the comparable period last year, primarily as a result of a $1 billion increase in assets under management. Management revenues slightly exceeded those from real estate investments for the first time in the company's history. Diluted EPS for the quarter declined to a loss of $0.10 down from break-even for the comparable period in 2001. This decline was due to an increase in non-cash impairment charges on real estate and related investments. Prospects for the first quarter of 2003 appear favorable.

* Funds From Operations (FFO) for the twelvemonth period increased 17% to $2.81 per diluted share, or $102 million, up from $2.41 per diluted share, or $84.2 million, for the comparable period last year. FFO for the three-month period increased 47% to $0.87 per diluted share, or $32.4 million, up from $0.59 per diluted share, or $21.2 million, for the comparable period in 2001. FF0 is a widely accepted supplemental measure of performance. A complete reconciliation containing adjustments from GAAP net income to FF0 is included in this release.

* Net income for the 12-month period increased by 30% to $46.6 million up from $35.8 million for the comparable period in 2001. For the three-month period the company reported a net loss of $3.7 million as compared with net income of $133,000 for the same period a year ago. Excluding the non-cash impairment charges in both years, the company would have reflected a 55% increase in net income.

* Total revenue for the 12-month period ended Dec. 31 increased 25% to $161.6 million up from $129.3 million for the same period a year ago. Total revenue for the three-month period increased by 48% to $52.9 million up from $35.9 million for the comparable period in 2001.

* W. P. Carey completed more than $1 billion in net lease transactions during 2002, including $508 million in the fourth quarter, up from $395 million during all of 2001 as companies continued to seek alternative sources of capital. The substantial growth in transaction volume and related fee income for 2002 is in part affected by current market conditions and may not be indicative of a permanent increasing trend.

* In December the Board of Directors raised the cash dividend to $.431 per common share. This reflects the seventh consecutive quarterly increase. The dividend was paid on January 15, 2003 to shareholders of record on Dec. 31. Dividends have increased every year since the company went public.

* In January, Chairman Wm. Polk Carey announced a $50 million personal gift on behalf of the W. P. Carey Foundation to endow the W. P. Carey School of Business at Arizona State University. This is the largest gift in ASU's history and the second largest gift ever given to a U.S. business school. Also in January, the Foundation announced a $10 million personal gift to the Gilman School in Baltimore, MD.

Carey said, "As we approach our thirtieth anniversary this March, I look back and realize that our decision to run W. P. Carey as owners has been the foundation of our success. This philosophy has enabled us to provide our investors with consistent returns despite the uncertainties of the broader financial markets. While the management side of our business continues to play an increasingly important role in our success, we remain diligent in monitoring the performance of our net-leased assets. As we look to the next 30 years and beyond, we remain optimistic that our best days are yet to come."
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Title Annotation:W.P. Carey adn Company L.L.C.
Publication:Real Estate Weekly
Geographic Code:1USA
Date:Mar 5, 2003
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