W. P. Carey Inc. Reit · NYSE:WPC
W. P. Carey Inc. Reit — Carey W P & — The Wall Street Transcript's REIT Industry Conference 2004
28 slides from W. P. Carey Inc. Reit's conference presentation, Aug 17, 2004
Slide 1: The Wall Street Transcript's REIT Industry Conference
The Wall Street Transcript’s REIT Industry Conference Tuesday, August 17, 2004 Harvard Club, New York City
Slide 2: Forward-looking statements and company description
W. P. Carey & Co. trades on the New York Stock Exchange under the ticker symbol WPC. Approximately 54% of its revenues are from management fees and 46% are from property holdings. CPA ® funds, which are advised by W. P. Carey, are created periodically as warranted by market opportunities. The inform
Slide 3: Returns Since NYSE Listing in 1998
Returns Since NYSE Listing in 1998 Shareholder Returns 3 60 80 100 120 140 160 180 200 220 240 260 1/21/98 1998 1999 2000 2001 2002 2003 2004 YTD WPC NAREIT S&P 500
Slide 4: Comparative Total Returns
Comparative Total Returns Shareholder Returns 4
Slide 5: Growth in FFO
Since listing on the NYSE in 1998, Funds from Operations have grown at a 17% compound annual growth rate. Growth in FFO FFO Growth ($ in millions) *Annualized 6-month FFO – Not a projection by the Company 5
Slide 6: Unique Business Model
Unique Business Model W. P. Carey & Co. LLC OWNS MANAGES Generates 54% of its revenue by managing day-to-day operations and new real estate investments. $1.4 billion total market capitalization Generates 46% of its revenue through rental income from its owned assets. $5.4 billion in net-leased real
Slide 7: Owns: Diversified Stable Portfolio
W. P. Carey & Co. LLC OWNS Generates 46% of its revenue through rental income from its owned assets. Diversified Stable Portfolio $1.4 billion total market capitalization 7 MANAGES DIVERSIFIED STABLE PORTFOLIO
Slide 8: Diversified Income: Top Ten Tenants
Diversified Income Diversified Stable Portfolio 1.4% 3.1% 2,393,255 AutoZone, Inc. 1.6% 3.4% 2,655,320 Orbital Sciences Corporation 1.6% 3.5% 2,709,076 Quebecor Printing USA 1.7% 3.7% 2,837,889 America West Holdings 1.7% 3.7% 2,888,424 Carrefour France, SA 1.7% 3.7% 2,922,348 Federal Express Corpora
Slide 9: Portfolio Diversification
By Geographic Region By Property Type Portfolio Diversification Note: Based on Annualized Rent Diversified Stable Portfolio 9
Slide 10: Management/Advisory Business
Management/Advisory Business W. P. Carey & Co. LLC MANAGES Generates 54% of its revenue by managing day-to-day operations and new real estate investments. $5.4 billion in net-leased real estate 10 OWNS CPA ® REITS
Slide 11: Domestic Market Opportunity
Approximately 24% of commercial real estate is owner-occupied, representing over $1 trillion in investment opportunity Ownership of U.S. Commercial Real Estate* *(Source: Jones Lang LaSalle) Domestic Market Opportunity 11
Slide 12: Convergence of Two Major Trends
Convergence of Two Major Trends Investor interest in yield investments and stability Corporations desire to outsource real estate assets W. P. Carey & Co. LLC Management/Advisory Business W. P. Carey & Co. LLC MANAGES 12 Investor interest in yield investments Corporations desire to outsource real es
Slide 13: Growth in Assets Under Ownership and Management
($ in millions) Growth in Assets Under Ownership and Management W. P. Carey & Co. LLC MANAGES Management/Advisory Business Total assets under management and ownership have grown at a compound annual rate of 23% over the last 24 years 13 OWNS
Slide 14: Investment Overview: Transaction Statistics
Investment Overview 2001 - 2004 Transaction Statistics 15 20 24 19 Number of Industries 17.8 19.5 16.7 19.6 Average Lease Term of New Investments (years) 5 5 3 3 Number of Countries $45,439 $24,993 $33,601 $19,753 Average Investment Size* 17 29 30 20 Number of Investments $727,027 $724,788 $1,008,02
Slide 15: Recent Acquisitions: U-Haul
Recent Acquisitions 15 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 locati
Slide 16: Recent Acquisitions: Shaklee
16 Recent Acquisitions Shaklee Corporation is a leading provider of premium quality, natural, environmentally friendly nutrition, personal care, and household products as well as state-of-the art air and water treatment systems. T he 124,000 square foot facility will be leased under a 20-year triple
Slide 17: Recent Acquisitions: Actuant
Recent Acquisitions 17 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 leader
Slide 18: Recent Highlights
Recent Highlights 18 Launched CPA ® :16 – Global in December 2003 and raised $350 million program to date Completed $727 million of investments on behalf of CPA REITs in 2004 year-to-date Assets under ownership and management surpasses $6 billion W. P. Carey proposed liquidity transaction for CIP ®
Slide 19: CIP Proposed Liquidity Transaction Details
Management/Advisory Business W. P. Carey & Co. LLC MANAGES 19 $13.90 NAV per share represents 39% increase in initial principal value Upon approval, including dividends received and capital appreciation, CIP ® shareholders have achieved an average annual total return of 11.3% * When returns are calc
Slide 20: CPA Program Track Record
® Management/Advisory Business W. P. Carey & Co. LLC MANAGES 20 Fund Date of End Value Cumulative Average Final Closing Plus Distributions Return Annual Return CPA ® :1 6/12/79 $2,367 137% 7.3% CPA ® :2 9/23/80 $3,687 269% 15.3% CPA ® :3 5/13/82 $4,082 308% 19.4% CPA ® :4 6/16/83 $3,101 210% 14.3% C
Slide 21: Serving Investors Since 1973
Serving Investore Since 1973 www.wpcarey.comt
Slide 22: WPC Financial Results
WPC Financial Results (in thousands except per share amounts) 22 Revenues: $92,500 $86,670 $80,840 $46,911 $84,255 $88,060 Expenses: $21,603 $16,134 $15,116 $29,435 $42,592 $43,698 Net Income: $35,761 $46,588 $62,878 $1.02 $1.28 $1.65 12 Months Ended 12 Months Ended 12 Months Ended 12/31/01 12/31/02
Slide 23: WPC Capital Structure
WPC Capital Structure (in thousands) 23 Market Capitalization (as of June 30, 2004): W. P. Carey $1,151,783 $ 217,227 $ 30,536 $1,399,546 NAREIT W. P. Carey Equity Index 82% 61% 18% 39% 1.2% 17% 7.9x 3.0x Source: SEC Filings, SNL DataSource Effect of 25 b.p. interest rate = $.001 FFO per Share Equit
Slide 24: FFO Multiple vs. REIT Peer Group
FFO Multiple vs. REIT Peer Group W. P. Carey Current Valuation *Annualized 6-month FFO – Not a projection by the Company 24 Close 8/11/04 2004 Est. FFO FFO Multiple AMB Property $34.95 $2.33 15.0 Alexandria Real Estate $60.50 $4.48 13.5 Capital Automotive REIT $29.42 $2.46 12.0 Commercial Net Lease
Slide 25: Earnings Multiple vs. Investment Manager Peer Group
Earnings Multiple vs. Investment Manager Peer Group W. P. Carey Current Valuation 25 Close 2003 8/11/04 Net Income P/E Ratio Alliance Capital $32.80 $2.12 15.5 Franklin Resources $48.76 $2.22 22.0 BlackRock $62.29 $2.36 26.4 Eaton Vance $36.38 $1.51 24.1 Federated Investors $28.26 $ 1.82 15.5 Janus
Slide 26: W. P. Carey Current Valuation
W. P. Carey Current Valuation Annualized EBITDA = $68,000,000 Annualized Funds from Operations = $52,000,000 OWNS MANAGES 12.9x 10x WPC Market Cap at Average Multiples = $1,350,800,000 Vs. Current Market Cap = $1,176,000,000 26 Average REIT Peer Group P/2004 FFO Multiple Average Asset Manager Peer G
Slide 27: Running the Business as Owners
Running the Business as Owners 13.90% Fortune 500 * 14.59% Equity REIT Industry 7.50% Peer Group 40.17% W. P. Carey Percentage of Management Ownership as of 2004 Proxy Season * As of 2003 Proxy Season 27
Slide 28: 1-800 WP CAREY
1-800 WP CAREY IR@wpcarey.com 28
Carey W P & — The Wall Street Transcript's REIT Industry Conference 2004 on 6ix