W. P. Carey Inc. Reit · NYSE:WPC
W. P. Carey Inc. Reit — W. P. Carey — Investor Presentation (November 2015)
27 slides from W. P. Carey Inc. Reit's investor presentation, Nov 3, 2015
Slide 1: W. P. Carey Inc. Investor Presentation Third Quarter 2015
W. P. Carey Inc. Investor Presentation Third 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 September 30, 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 LTM 3Q15 Revenue (2) $11.1 billion of Enterprise Value (1) 80% of LTM 3Q15 Revenue (2) Owned Real Estate Portfolio (3) Investment Management $10.5
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 857 properties across 19 countries Total Portfolio 854 Net-Lease Number of Properties 3 Operating Number of Tenants 221 Square Footage 90 million Contractual Minimum Annualized Base Rent $688 million Countries 19 Weighted Aver
Slide 11: Property and Industry Diversification
Property and Industry Diversification (1) By Property Type (% of ABR) Top 10 Tenants ABR % of Office 30% 8% ($ millions) Total 5% Industrial 25% 30% $34 4.9% Warehouse 18% 15% (2) Retail 15% 32 4.6% Self-storage (2) 5% 18% 28 4.0% 25% Other (3) 8% 26 3.9% State of Andalucia By Tenant Industry (% of
Slide 12: International Investments
International Investments (1) W. P. Carey has been investing internationally for 17 years, primarily in Western & Northern Europe Europe Opportunity ABR Percent ($ millions) of Total • More owner-occupied commercial real estate United States • Higher population density East $125 18% • 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 41% CPI-based 28% 26% Fixed 26% 41% 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 8.9 years Lease Expirations (% ABR) (2) 60% 50% 40% 38.4% 30% 20% 13.5% 8.3% 9.0% 10% 6.7% 5.8% 6.1% 5.2% 1.9% 2.8% 2.3% 0% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Thereafter (1
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 Sept 2015 (1) Portfolio information refle
Slide 16: Investment Activity
Investment Activity • Completed six acquisitions and one build-to-suit project on balance sheet in 2015 through the third quarter totaling approximately $0.6 billion – Industrial, Office, Retail and Warehouse assets – Assets located in the U.K., the Netherlands, Austria, Germany and Sweden • Dispose
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: III. Investment Management
WP. CAREY Ill. Investment Management
Slide 19: 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 - $140 million over each of the las
Slide 20: IV. Balance Sheet
WP. CAREY lV. Balance Sheet
Slide 21: Balance Sheet Overview
Balance Sheet Overview W. P. Carey has conservative leverage and strong liquidity levels Capitalization (%) Capitalization ($ millions) Sep-15 Total Equity (1) $6,727 4% 2% Mortgage Debt (pro rata) 2,334 Equity (1) 60% 13% Mortgage Debt 21% Senior Unsecured Notes 1,510 Senior Unsecured Notes 13% Uns
Slide 22: Debt Maturity Schedule
Debt Maturity Schedule Principal at Maturity (1) (2) (2) (3) Mortgage Debt Unsecured Term Loan Unsecured Revolver Unsecured Bonds 800 700 600 500 $ millions 400 250 560 300 561 435 500 450 200 252 264 100 187 209 149 123 90 51 8 30 16 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Thereaft
Slide 23: 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 24: 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 $3.82 with a yield of 5.9% (1) • W.P. Carey has increased its dividend 46.9% since converting to a public REIT in September 2012 (2) Dividends per Share
Slide 25: 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 26: 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 27: 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