W. P. Carey Inc. Reit · NYSE:WPC
W. P. Carey Inc. Reit — W. P. Carey — Investor Presentation (May 2015)
27 slides from W. P. Carey Inc. Reit's investor presentation, May 18, 2015
Slide 1: W. P. Carey Inc.
W. P. Carey Inc. May 2015 WP. CAREY
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 March 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 Successfu
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) 19% of Q1-2015 Revenue (2) $10.8 billion of Enterprise Value (1) 81% of Q1-2015 Revenue (2) Owned Real Estate Portfolio (3) Investment Management $9.5 bil
Slide 6: Recent Evolution
Recent Evolution Completes Completes CPA®:16 Obtains $1.0 billion Receives investment Carey Watermark Exercises $500 Prices inaugural transformative – Global merger senior unsecured grade corporate Investors 2, a lodging million accordion €500 million, 2.0% CPA®:15 merger and credit facility and rat
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 Creditworthiness • Competitor analysis of Tenant • Company history • Protect downside by com
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 30 operational team members • W. P. C
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 856 properties across 18 countries Total Portfolio 852 Net-Lease Number of Properties 4 Operating Number of Tenants 219 Square Footage 89.2 million Contractual Minimum Annualized Base Rent $673 million Countries 18 Weighted Av
Slide 11: Property and Industry Diversification
Property and Industry Diversification (1) By Property Type (% of ABR) Top 10 Tenants ABR % of Office 30% 8% ($ millions) Total 5% Industrial 25% 30% $33 4.8% Warehouse 18% 15% (2) Retail 15% 32 4.7% Self-storage (2) 5% 18% 27 4.0% Other (3) 8% 25% 25 3.8% State of Andalucia By Tenant Industry (% of
Slide 12: International Investments
International Investments (1) W. P. Carey has been investing internationally for 15 years, primarily in Western & Northern Europe Europe Opportunity ABR Percent ($ millions) of Total • More owner-occupied commercial real estate United States • Higher population density East $124 19% • Stricter zonin
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 42% CPI-based 28% 25% Fixed 25% 42% Other 3% None 2% 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 9.2 years Lease Expirations (% ABR) (2) 49.8% 50% 40% 30% 20% 9.1% 10% 8.3% 6.8% 6.8% 5.2% 5.9% 2.7% 3.0% 2.5% 0% 2015 2016 2017 2018 2019 2020 2021 2022 2023 Thereafter (1) Portfolio inf
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% 99.0% 100% 96.1% 97.1% 96.6% 97.3% 80% 60% 40% 20% 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 March 2015 (1) Portfolio information refl
Slide 16: Investment Activity
Investment Activity • Completed thirteen acquisitions on balance sheet since the 2014 totaling approximately $1.3 billion – Office, warehouse, industrial, retail and agricultural assets – Assets located in the U.S., Norway, Poland, Spain, Australia, the Netherlands, Austria and the U.K. • Disposed o
Slide 17: III. Investment Management
WP. CAREY Ill. Investment Management
Slide 18: Investment Management Overview
Investment Management Overview Investment management platform provides strategic and economic benefits to W. P. Carey • Stable asset management fee stream – annual earnings from asset management fees, structuring fees, and general partnership interests between $120 million and $140 million over each
Slide 19: IV. Balance Sheet
WP. CAREY lV. Balance Sheet
Slide 20: Balance Sheet Overview
Balance Sheet Overview W. P. Carey has conservative leverage and strong liquidity levels to support future growth Capitalization (%) Capitalization ($ millions) Mar-15 Total Equity (1) $6,754 2% 2% Mortgage Debt (pro rata) 2,365 (1) Equity 61% 13% Senior Unsecured Notes 1,479 Mortgage Debt 21% Unsec
Slide 21: Debt Maturity Schedule
Debt Maturity Schedule Principal at Maturity (1) (2) (2) (3) Mortgage Debt Unsecured Term Loan Unsecured Revolver Unsecured Bonds 700 600 500 400 $ millions 250 538 300 563 500 450 200 264 260 186 100 187 209 141 123 90 51 8 30 16 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Thereafter Y
Slide 22: Unsecured Bond Covenants
Unsecured Bond Covenants W. P. Carey is focused on transitioning to an unsecured corporate structure and increasing its unencumbered asset base while maintaining conservative leverage • Investment grade balance sheet with Baa2 / stable rating from Moody’s and BBB / stable rating from S&P (1) • Coven
Slide 23: 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 $3.81 with a yield of 5.9% (1) • W.P. Carey has increased its dividend 46.5% since converting to a public REIT in September 2012 (2) Dividends per Share
Slide 24: 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 25: Disclosures (cont'd)
Disclosures (cont’d) Non-GAAP Financial Disclosures 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; and (ii)
Slide 26: Disclosures (cont'd)
Disclosures (cont’d) Non-GAAP Financial Disclosures (cont’d) Pro Rata Metrics This presentation contains certain metrics prepared under the pro rata consolidation method. We refer to these metrics as pro rata metrics. We have a number of investments, usually with our affiliates, in which our economi
Slide 27: W. P. Carey
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