W. P. Carey Inc. Reit · NYSE:WPC
W. P. Carey Inc. Reit — W. P. Carey & — Shareholder Meeting (June 2004)
26 slides from W. P. Carey Inc. Reit's shareholder meeting presentation, Jun 10, 2004
Slide 1: 2004 Annual Shareholders Meeting
2004 Annual Shareholders Meeting Thursday, June 10, 2004 Waldorf=Astoria, New York City www.wpcarey.com 1
Slide 2: Shareholder Returns
Shareholder Returns Returns Since NYSE Listing in 1998 260 240 WP C 220 NAREIT 200 S &P 500 180 160 140 120 100 80 60 1/ 2 1 / 9 8 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 YTD Serving Investors Since 1973 www.wpcarey.com 2
Slide 3: Shareholder Returns: Comparative Total Returns
Shareholder Returns Comparative Total Returns 25% 21.14% 20.51% 20% 16.04% WPC 15% 13.65% 10% NAREIT Equity Index 5% S&P 500 0% -2.10% -1.66% -5% 3-Year Average Total Return 5-Year Average Total Return Serving Investors Since 1973 www.wpcarey.com 3
Slide 4: FFO Growth
FFO Growth Growth in FFO ($ in millions) $106 $102 $100 $84 $75 $68 $53 $49 $50 $25 1998 1999 2000 2001 2002 2003 Since listing on the NYSE in 1998, funds from operations have grown at a 17% compound annual growth rate. Serving Investors Since 1973 www.wpcarey.com 4
Slide 5: Unique Business Model
Unique Business Model W. P. Carey & Co. LLC OWNS MANAGES DIVERSIFIED STABLE PORTFOLIO CPA® REITS $1.3 billion in $5 billion in net-leased net-leased real estate real estate Generates 46% of its revenue Generates 54% of its revenue by through rental income from its managing day-to-day operations owne
Slide 6: Diversified Stable Portfolio
Diversified Stable Portfolio W. P. Carey & Co. LLC OWNS MANAGES DIVERSIFIED STABLE PORTFOLIO $1.3 billion in net-leased real estate Generates 46% of its revenue through rental income from its owned assets. Serving Investors Since 1973 www.wpcarey.com 6
Slide 7: Diversified Stable Portfolio: Top Ten Tenants
Diversified Stable Portfolio W. P. Carey & Co. LLC Diversified Income OWNS MANAGES Top Ten Tenants/ Percentage of Percentage of Lease Guarantors Annual Rent Total Rent Total Revenue Dr Pepper/Seven Up Bottling $ 4,474,720 5.8% 2.6% Detroit Diesel Corporation 4,157,524 5.4% 2.5% American Greetings Co
Slide 8: Portfolio Diversification
Diversified Stable Portfolio Portfolio Diversification Note: Based on Annualized Rent By Property Type By Geographic Region Hotel Other Retail East 2.4% 0.6% 7.6% 14.8% Europe 6.7% Midwest 27.0% Office/ Research Industrial 33.5% 44.6% West 19.4% South Distribution/ 32.1% Warehouse 10.7% Serving Inve
Slide 9: Management/Advisory Business
Management/Advisory Business W. P. Carey & Co. LLC OWNS MANAGES CPA® REITS $5 billion in net-leased real estate Generates 54% of its revenue by managing day-to-day operations and new real estate investments. Serving Investors Since 1973 www.wpcarey.com 9
Slide 10: Growth in Assets Under Ownership and Management
Management/Advisory Business W. P. Carey & Co. LLC Growth in Assets Under Ownership and Management ($ in millions) OWNS MANAGES $7,000 $6,500 $6,262 $5,824 $6,000 Total assets under management and $5,500 $5,000 ownership have grown at a compound $4,568 $4,500 annual rate of 23% over the last 24 year
Slide 11: Convergence of Two Major Trends
Management/Advisory Business W. P. Carey & Co. LLC Convergence of Two Major Trends OWNS MANAGES u Investor interest in yield investments u Corporations desire to outsource real estate assets W. P. Carey & Co. LLC Investor interest in Corporations yield desire to investments outsource real and stabil
Slide 12: Domestic Market Opportunity
Domestic Market Opportunity Ownership of U.S. Commercial Real Estate* 7% 24% Approximately 24% of 17% commercial real estate is owner-occupied, representing over $1 trillion in investment Owner-Occupiers opportunity Private Direct Market 52% Private Indirect Market Public Market (Investment Grade CM
Slide 13: Investment Overview 2001 - 2004
Investment Overview 2001 - 2004 W. P. Carey & Co. LLC Transaction Statistics * in thousands OWNS MANAGES 2001 2002 2003 2004 YTD Total Investment Volume* $395,064 $1,008,027 $724,788 $487,288 Number of Investments 20 30 29 11 Average Investment Size* $19,753 $33,601 $24,993 $44,299 Number of Industr
Slide 14: Recent Acquisitions: U-Haul
Recent Acquisitions Facility Type: Self-Storage & Truck Rental Facilities Purchase Price: $312,445,000 Location: 78 locations throughout the U.S. Acquired by: CPA®:14, CPA®:15, CPA®:16 - Global • U-Haul is the nation’s leading do-it-yourself moving company with a network of over 14,000 locations in
Slide 15: Recent Acquisitions: Shaklee
Recent Acquisitions Facility Type: Corporate Headquarters Purchase Price: $32,461,000 Location: Pleasanton, CA Acquired by: CPA®:15 • Shaklee Corporation is a leading provider of premium quality, natural, environmentally friendly nutrition, personal care, and household products as well as state -of-
Slide 16: Recent Acquisitions: Actuant
Recent Acquisitions Facility Type: Manufacturing/Office Purchase Price: $16,690,000 Location: Kahl am Main, Germany Acquired by: CPA®:15, CPA®:16 - Global • Actuant is a global manufacturer and marketer of a wide range of industrial products and systems. The Actuant businesses are market leaders in
Slide 17: Recent Highlights
Recent Highlights u Launched CPA®:16 – Global in December 2003 and raised $207 million program to date u Completed $487 million of investments on behalf of CPA® REITs in 2004 year-to-date u Assets under ownership and management surpasses $6 billion u W. P. Carey proposed liquidity transaction for CI
Slide 18: CIP Proposed Liquidity Transaction Details
Management/Advisory Business W. P. Carey & Co. LLC Carey Institutional Properties (CIP ®)’s Proposed Liquidity Transaction Details OWNS MANAGES • All CIP® shareholders will receive appraised NAV of $13.90 per share (original offering price of $10.00) • All CIP® shareholders will receive $3.00 per sh
Slide 19: CIP Proposed Liquidity Transaction Details
Management/Advisory Business W. P. Carey & Co. LLC Carey Institutional Properties (CIP ®)’s Proposed Liquidity Transaction Details OWNS MANAGES • $13.90 NAV per share represents 39% increase in initial principal value • Upon approval, including dividends received and capital appreciation, CIP® share
Slide 20: WPC Fundamentals
WPC Fundamentals Serving Investors Since 1973 www.wpcarey.com 20
Slide 21: WPC Financial Results
WPC Financial Results 12 Months Ended 12 Months Ended 12 Months Ended (in thousands except per share amounts) 12/31/01 12/31/02 12/31/03 Revenues: Principal Revenues $92,500 $86,670 $80,840 Management Revenues $46,911 $84,255 $88,060 Expenses: Interest Expense $21,603 $16,134 $15,116 G&A Expense $29
Slide 22: WPC Capital Structure
WPC Capital Structure Market Capitalization: W. P. Carey (in thousands except per share amounts) Equity Market Capitalization $1,096,839 Debt Market Capitalization $ 207,397 ($30,757 = Company Level Debt) Total Market Capitalization $1,304,236 NAREIT W. P. Carey Equity Equity % of Total Market Cap 8
Slide 23: W. P. Carey Current Valuation: FFO Multiple
W. P. Carey Current Valuation FFO Multiple vs. REIT Peer Group Close 6/8/04 2003 FFO FFO Multiple AMB Property $33.68 $2.13 15.8 Alexandria Real Estate $55.12 $4.23 13.0 Capital Automotive REIT $28.05 $2.40 11.7 Commercial Net Lease Realty $17.01 $1.46 11.7 Lexington Corp. Properties $19.54 $1.82 10
Slide 24: W. P. Carey Current Valuation: Earnings Multiple
W. P. Carey Current Valuation Earnings Multiple vs. Investment Manager Peer Group Close 6/8/04 2003 Net Income P/E Ratio Alliance Capital $34.12 $2.12 16.1 Franklin Resources $50.63 $2.22 22.8 BlackRock $64.81 $2.36 27.5 Eaton Vance $37.77 $1.51 25.0 Federated Investors $31.21 $1.82 17.1 Janus Capit
Slide 25: Running the Business as Owners
Running the Business as Owners Percentage of Management Ownership as of 2004 Proxy Season W. P. Carey 40.17% Peer Group 7.50% Equity REIT Industry 14.59% Fortune 500* 13.90% * As of 2003 Proxy Season Serving Investors Since 1973 www.wpcarey.com 25
Slide 26: 1-800 WP CAREY • IR@wpcarey.com
1-800 WP CAREY • IR@wpcarey.com Serving Investors Since 1973 www.wpcarey.com 26