W. P. Carey Inc. REIT · NYSE:WPC
W. P. Carey Inc. REIT — W. P. Carey — Investor Presentation (February 2016)
28 slides from W. P. Carey Inc. REIT's investor presentation, Feb 25, 2016
Slide 1: W. P. Carey Inc. Investor Presentation Fourth Quarter 2015
W. P. Carey Inc. Investor Presentation Fourth Quarter 2015
Slide 2: Table of Contents
Table of Contents I. Overview II. Owned Real Estate Portfolio III. Investment Management IV. Balance Sheet Unless otherwise noted, all data in this presentation is as of December 31, 2015. Amounts may not sum to totals due to rounding.
Slide 3: I. Overview
WP. CAREY |. Overview
Slide 4: Company Highlights
Company Highlights W. P. Carey is a publicly traded REIT specializing in sale-leaseback investments of corporate-owned real estate worldwide Size One of the largest owners of net lease assets Highly diversified portfolio by geography, tenant, tenant Diversification industry and asset type Successful
Slide 5: Business Model and Structure
Business Model and Structure W. P. Carey is a self-managed REIT that also serves as an advisor to our investment programs Public REIT (NYSE: WPC) 20% of FY 2015 Revenue (2) $10.0 billion of Enterprise Value (1) 80% of FY 2015 Revenue (2) Owned Real Estate Portfolio (3) Investment Management $11.0 bi
Slide 6: Recent Evolution
Recent Evolution Completes Completes CPA®:16 Obtains $1.0 billion Receives investment Exercises $500 Prices inaugural CWI 2, a lodging fund, Establishes “At-the- transformative – Global merger senior unsecured grade corporate million accordion €500 million, 2.0% declared effective by market” offerin
Slide 7: Investment Strategy
Investment Strategy Transactions Evaluated on Four Key Factors • Generate attractive risk-adjusted returns by identifying • Industry drivers and trends and investing in the real estate of companies worldwide – primarily U.S. and Western & Northern Creditworthiness • Competitor analysis Europe of Ten
Slide 8: Proactive Asset Management
Proactive Asset Management Domestic and international asset management capabilities to address lease expirations, changing tenant credit profiles and asset repositioning or dispositions • Asset management offices in New York and Amsterdam with 14 transaction and 8 operational team members • W. P. Ca
Slide 9: II. Owned Real Estate Portfolio
II. Owned Real Estate Portfolio
Slide 10: W. P. Carey's Portfolio
W. P. Carey’s Portfolio (1) Large diversified portfolio with interests in 869 properties across 19 countries Total Portfolio 869 Net-Lease Number of Properties 3 Operating Number of Tenants 222 Square Footage 90 million Contractual Minimum Annualized Base Rent $693 million Countries 19 Weighted Aver
Slide 11: Property and Industry Diversification
Property and Industry Diversification (1) By Property Type (% of ABR) Top 10 Tenants Number of ABR % of Office 30% 8% Properties ($ millions) Total 5% Industrial 25% 30% 53 $33 4.8% Warehouse 17% 16% (2) Retail 16% 78 32 4.6% Self-storage (2) 5% 17% 16 27 3.9% 25% Other (3) 8% 70 26 3.7% State of An
Slide 12: International Investments
International Investments (1) W. P. Carey has been investing internationally for 18 years, primarily in Western & Northern Europe ABR Percent Diversification By Geography (1) ($ millions) of Total U.S. 18% East $127 18% 23% West 121 18% 36% 7% South 112 16% 64% 8% 17% Midwest 83 12% 11% 16% Total U.
Slide 13: Internal Growth from Contractual Rent Increases
Internal Growth from Contractual Rent Increases (1) • Approximately 95% of leases have either fixed or CPI-based contractual rent increases • Virtually no exposure to operating expenses 2% 3% Uncapped CPI 40% CPI-based 28% 27% Fixed 27% 40% None 2% Other 3% 28% (1) Based on ABR and reflects pro rata
Slide 14: Lease Expirations and Average Lease Term
Lease Expirations and Average Lease Term (1) Limited near-term lease expirations; weighted average lease term of 9.0 years Lease Expirations (% ABR) (2) 60% 50% 40% 36.7% 30% 20% 13.3% 8.2% 8.9% 10% 6.1% 5.2% 6.0% 5.3% 4.9% 2.6% 1.9% 0.9% 0% (3) (4) Dec-2015 2016 2017 2018 2019 2020 2021 2022 2023 2
Slide 15: Historical Occupancy
Historical Occupancy (1) (2) Stable occupancy maintained during the credit crisis and economic downturn Occupancy (% Square Feet) 99.1% 98.5% 98.4% 98.8% 99.0% 99.2% 100% 96.1% 97.1% 96.6% 97.3% 80% 60% 40% 20% 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 (1) Portfolio information reflects p
Slide 16: Investment Activity
Investment Activity • Completed nine acquisitions totaling approximately $689 million and one build-to-suit project on balance sheet in 2015 – Net leased Retail, Office, Industrial, Hotel, and Warehouse assets – Assets located in the United States, United Kingdom, the Netherlands, Austria, Germany a
Slide 17: Investment Activity (Cont'd)
Investment Activity (Cont’d) 2015 Acquisitions (Cont’d) NPower (Aug-15) MAN (Aug-15) Purchase Price: $54 million Purchase Price: $44 million Facility Type: Office Facility Type: Truck & Bus Terminals Location: United Kingdom Location: Austria & Germany Size: 217,000 square feet Size: 185,000 square
Slide 18: Investment Activity (Cont'd)
Investment Activity (Cont’d) 2015 Acquisitions (Cont’d) 2015 Build-to-Suit Completion Harvest Christian (Dec-15) Banco Santander (Sep-15) Purchase Price: $31 million Construction Cost: $53 million Facility Type: Office Facility Type: Office Location: Irvine, CA Location: Germany Size: 106,000 square
Slide 19: III. Investment Management
WP. CAREY Ill. Investment Management
Slide 20: Investment Management Overview
Investment Management Overview Investment management platform provides strategic and economic benefits to W. P. Carey • Asset management fees, structuring fees and general partnership interests have generated $120 million - $180 million in recent years (1) • Allows W. P. Carey to spread costs over a
Slide 21: IV. Balance Sheet
WP. CAREY lV. Balance Sheet
Slide 22: Balance Sheet Overview
Balance Sheet Overview W. P. Carey has conservative leverage and strong liquidity levels Capitalization (%) Capitalization ($ millions) Dec-15 Total Equity (1) $5,758 2% 5% Mortgage Debt (pro rata) 2,196 Equity (1) 57% Mortgage Debt 22% 15% Senior Unsecured Notes 1,494 Senior Unsecured Notes 15% Uns
Slide 23: Debt Maturity Schedule
Debt Maturity Schedule Principal at Maturity (1) (2) (2) (3) Mortgage Debt Unsecured Term Loan Unsecured Revolver Unsecured Bonds 700 600 500 $ millions 400 250 544 300 485 450 548 500 200 309 261 100 186 209 59 90 87 16 51 8 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Thereafter Year of Mat
Slide 24: Unsecured Bond Covenants
Unsecured Bond Covenants • Investment grade balance sheet with Baa2 / stable rating from Moody’s and BBB / stable rating from S&P (1) • Covenant levels provide W. P. Carey with flexibility to grow Unsecured Senior Notes (2) Metric Covenant December 31, 2015 Total Debt / Total Leverage ≤ 60% 44.9% To
Slide 25: History of Consistent Dividend Growth
History of Consistent Dividend Growth W. P. Carey has increased its dividend every year since going public in 1998 • Current annualized dividend of $3.86 with a yield of 7.0% (1) • W.P. Carey has increased its dividend 48.5% since converting to a public REIT in September 2012 (2) Dividends per Share
Slide 26: Disclosures
Disclosures Cautionary Statement Concerning Forward-Looking Statements Certain of the matters discussed in this communication constitute forward-looking statements within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, both as amended by th
Slide 27: Disclosures (cont'd)
Disclosures (cont’d) Non-GAAP Financial Disclosures AFFO Due to certain unique operating characteristics of real estate companies, as discussed below, the National Association of Real Estate Investment Trusts, Inc., or NAREIT, an industry trade group, has promulgated a non-GAAP measure known as FFO,
Slide 28: Disclosures (cont'd)
Disclosures (cont’d) Non-GAAP Financial Disclosures (cont’d) Adjusted EBITDA We believe that EBITDA is a useful supplemental measure to investors and analysts for assessing the performance of our business segments because (i) it removes the impact of our capital structure from our operating results