W. P. Carey Inc. Reit · NYSE:WPC
W. P. Carey Inc. Reit — W. P. Carey — Merger or Acquisition (July 2013)
24 slides from W. P. Carey Inc. Reit's merger presentation, Jul 25, 2013
Slide 1: CPA:16 – Global Proposed Merger Transaction
W. P. Carey Inc. CPA®:16 – Global Proposed Merger Transaction WPC Investor Presentation | July 2013
Slide 2: Disclaimer
Disclaimer 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 and the Securities Exchange Act of 1934, both as amended by the Private Securities Liti
Slide 3: Transaction Overview
Transaction Overview • W. P. Carey Inc. (NYSE: WPC) proposes to acquire Corporate Property Associates 16 – Global Incorporated (“CPA®:16 – Global”), one of its managed non-traded REITs, in a transaction valued at approximately $4.0 billion, including pro-rata debt. • The proposed merger would furthe
Slide 4: Transaction Details
Transaction Details Transaction Consideration • 100% stock-for-stock transaction; each share of CPA®:16 – Global will be converted into WPC common stock based on the following exchange ratio: - Floating exchange ratio and fixed $11.25 share price for CPA®:16 – Global within a collar 12% above and be
Slide 5: Benefits of the Transaction
Benefits of the Transaction Enhances portfolio and increases scale: • Improves the quality of W. P. Carey’s earnings through increased diversification and by continuing the shift in revenue mix towards stable real estate rental income • Continues W. P. Carey’s evolution from a hybrid LLC that derive
Slide 6: W. P. Carey Highlights
W. P. Carey Highlights W. P. Carey is a leading global investor in critical corporate assets: • Proven investment experience over four decades and multiple economic cycles • Largest global owner/manager of triple-net lease assets, with $15.2 billion of assets under ownership and management(1) • Supe
Slide 7: Proven Asset Management Track Record
Proven Asset Management Track Record Program Program Life Total Return as % of Original Investment Average Annual Total Return (Net of Fees) IRR (Net of Fees) CPA®:1 1979-1998 237% 7.2% 7.0% CPA®:2 1980-1998 369% 14.9% 13.2% CPA®:3 1981-1998 408% 18.8% 15.1% CPA®:4 1983-1998 310% 13.9% 12.2% CPA®:5
Slide 8: Overview of CPA:16 – Global
Overview of CPA®:16 – Global CPA®:16 – Global is a non-traded REIT that was formed in 2003 and is sponsored by W. P. Carey High-quality portfolio(1) consisting of: • 494 properties, substantially all of which are triple-net leased to 140 corporate tenants • 47 million sq. ft. • 97% occupancy rate •
Slide 9: The Combined Portfolio
The Combined Portfolio W. P. Carey Current (1) (3) CPA®:16 – Global (2) (3) Combined Company (3) Number of Properties 422 494 734 Number of Tenants 124 140 231 Square Footage 39 million 47 million 86 million Annualized Contractual Minimum Rent $317 million $326 million $643 million No. of Countries
Slide 10: Geographically Diverse Portfolio
Geographically Diverse Portfolio Geography-countries_072313_12pt_v2.jpgCPA®:16 – Global portfolio complements W. P. Carey’s geographic diversification Region Annualized contractual minimum base rent ($'000) Percent of total W. P. Carey Current Combined Company W. P. Carey Current Combined Company Un
Slide 11: Geographically Diverse Portfolio and Property Type
Geographically Diverse Portfolio map for ppt_0716_b.jpgmap legend.jpg Combined Portfolio by Property Type(1)(2) Property_072313_lger2_12pt.jpg(1) Based on Annualized Contractual Minimum Base Rent (“ABR”) as of March 31, 2013. (2) Excludes 21 domestic self-storage properties in our Carey Storage subs
Slide 12: Portfolio Diversification by Tenant Industry
Portfolio Diversification by Tenant Industry(1) WPC MEr4ger_Tenant_072413_1b.jpg (1) Based on the Moody’s Classification System and information provided by the tenant. (2) Includes rent from tenants in the following industries: consumer non-durable goods; transportation – personal; grocery; federal,
Slide 13: Top Ten Tenant Concentration
Combined Company Annualized Rent ($’000s) % of Total 39,496 6.1% 30,546 4.7% 28,738 4.5% 17,308 2.7% 16,100 2.5% 15,495 2.4% 14,486 2.2% 11,944 1.9% 11,382 1.8% 11,315 1.8% Top 10 Total $196,681 30.6% Top ten tenant concentration will be reduced from 40% to approximately 31% of annualized rent with
Slide 14: Improved Lease Maturities and Average Lease Term
Improved Lease Maturities and Average Lease Term Long-term Lease Cash Flow 072413_combined.jpgLong-term lease_Legend_072413_v3.jpgLimited near-term lease maturities; weighted average lease term will increase from 8.8 years to 9.5 years (1) “Combined Company” represents the pro forma portfolio as of
Slide 15: Internal Growth from Built-In Rent Increases
Built-In Rent Increase_Larger_072313_v2b.jpgInternal Growth from Built-In Rent Increases Combined Company Built-In Contractual Rent Increases(1) 97% of leases include either fixed or CPI-based rent increases (1) Based on ABR. “Combined Company” represents the pro forma portfolio as of March 31, 2013
Slide 16: Key Operating Metrics and Capitalization
Key Operating Metrics Capitalization W. P. Carey Current(1) CPA®:16 – Global(2) Combined Company Equity Market Capitalization $4.6 billion $2.3 billion $6.5 billion(3) Total Net Debt $1.8 billion $1.7 billion $3.6 billion Total Enterprise Value $6.5 billion $4.0 billion $10.1 billion(3) Leverage Tot
Slide 17: Supports Continued Dividend Growth
Transaction Supports Continued Dividend Growth AnnDividends-Bar0724_v3.jpgPast performance does not guarantee future results. Annualized dividend per share reflects annualized fourth quarter dividend per share for the respective year. (1) Reflects anticipated minimum pro forma annual dividend per sh
Slide 18: Confirms WPC's Position as a Leading Net-Lease REIT
Transaction Confirms WPC’s Position as a Leading Net-Lease REIT Leading REIT 072513_v2.jpgCombined Company will be the second largest public net-lease REIT with TEV of $10.1 billion(1) (1) WPC TEV assumes acquisition of CPA®:16 – Global. (2) ARCP TEV assumes acquisitions of GE Portfolio, LSE and ARC
Slide 19: Has Outperformed Major Indexes
W. P. Carey Has Outperformed Major Indexes returns chart_v3_blues2_072413_b.jpgPast performance does not guarantee future results. Source: SNL Financial Total Return Comparison W. P. CAREY MSCI US REIT (RMS) S&P 500
Slide 20: Process and Timing
Transaction Process and Timing Announce Transaction July 25, 2013 Stockholder Votes for W. P. Carey and CPA®:16 – Global Anticipated Q4 2013 Close Transaction Q1 2014, subject to SEC review and stockholder approvals(1) (1) There is no assurance that the proposed merger will close by the anticipated
Slide 21: Process and Timing
Transaction Process and Timing Announce Transaction July 25, 2013 Stockholder Votes for W. P. Carey and CPA®:16 – Global Anticipated Q4 2013 Close Transaction Q1 2014, subject to SEC review and stockho
Slide 22: Process and Timing
Transaction Process and Timing Announce Transaction July 25, 2013 Stockholder Votes for W. P. Carey and CPA®:16 – Global Anticipated Q4 2013 Close Transaction Q1 2014, subject to SEC review and stockho
Slide 23: Process and Timing
Transaction Process and Timing Announce Transaction July 25, 2013 Stockholder Votes for W. P. Carey and CPA®:16 – Global Anticipated Q4 2013 Close Transaction Q1 2014, subject to SEC review and stockho
Slide 24: Process and Timing
Transaction Process and Timing Announce Transaction July 25, 2013 Stockholder Votes for W. P. Carey and CPA®:16 – Global Anticipated Q4 2013 Close Transaction Q1 2014, subject to SEC review and stockho