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8-K - FORM 8-K - CORPORATE PROPERTY ASSOCIATES 16 GLOBAL INC | c92898e8vk.htm |
Exhibit
99.1
Corporate Property Associates 16 Global Incorporated
Supplemental Information
As of September 30, 2009
Forward-Looking Statements
This supplemental information may contain forward-looking statements within the meaning of the Federal
securities laws. It is important to note that our actual results could be materially different from
those projected in such forward-looking statements. You should exercise caution in relying on
forward-looking statements as they involve known and unknown risks, uncertainties and other factors
that may materially affect our future results, performance, achievements or transactions.
Information on factors which could impact actual results and forward-looking statements contained
herein is included in our filings with the SEC, including but not limited to our Form 10-K for the
year ended December 31, 2008. We do not undertake to revise or update any forward-looking
statements.
Executive Offices
|
Investor Relations | |
50 Rockefeller Plaza
|
Susan C. Hyde | |
New York, NY 10020
|
Managing Director & Director of Investor Relations | |
Tel: 1-800-WPCAREY or (212) 492-1100
|
W. P. Carey & Co. LLC | |
Fax: (212) 492-8922
|
Phone: (212) 492-1151 | |
Web Site Address: www.CPA16GLOBAL.com |
Corporate Property Associates 16 Global Incorporated
Reconciliation of Net Income (Loss) to Funds From Operations - as adjusted (AFFO) (Unaudited)
(in thousands, except share and per share amounts)
(in thousands, except share and per share amounts)
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Net income (loss) attributable to CPA®:16 Global shareholders |
$ | 1,836 | $ | 5,004 | $ | (460 | ) | $ | 18,649 | |||||||
Gain on extinguishment of debt |
(2,313 | ) | | (8,825 | ) | | ||||||||||
Depreciation, amortization, and other non-cash charges |
13,119 | 16,185 | 34,758 | 37,529 | ||||||||||||
Straight-line and other rent adjustments |
(412 | ) | (572 | ) | 952 | (530 | ) | |||||||||
Gain on sale of real estate, net |
(7,662 | ) | (136 | ) | (7,662 | ) | (136 | ) | ||||||||
Impairment charges |
24,124 | | 45,210 | | ||||||||||||
AFFO adjustment to earnings from equity investments |
2,902 | 2,858 | 8,424 | 8,306 | ||||||||||||
AFFO adjustment to share of earnings of noncontrolling interests |
(11,977 | ) | (6,182 | ) | (12,588 | ) | (9,623 | ) | ||||||||
AFFO |
$ | 19,617 | $ | 17,157 | $ | 59,809 | $ | 54,195 | ||||||||
AFFO per share (a) |
$ | 0.18 | $ | 0.17 | $ | 0.56 | $ | 0.52 | ||||||||
Weighted average shares outstanding |
122,907,481 | 121,817,667 | 122,791,365 | 120,899,625 | ||||||||||||
(a) AFFO per share calculation: |
||||||||||||||||
AFFO |
$ | 19,617 | $ | 17,157 | $ | 59,809 | $ | 54,195 | ||||||||
Add: Issuance of shares to an affiliate in satisfaction of fees due |
2,947 | 3,005 | 8,783 | 9,016 | ||||||||||||
AFFO numerator in determination of AFFO per share |
$ | 22,564 | $ | 20,162 | $ | 68,592 | $ | 63,211 | ||||||||
Weighted average shares outstanding including dilutive effect of shares
issued in satisfaction of fees due |
122,907,481 | 121,817,667 | 122,791,365 | 120,899,625 | ||||||||||||
Non-GAAP Financial Disclosure
Funds from operations (FFO) is a non-GAAP financial measure that is commonly used by investors and analysts in evaluating
real estate companies. Although the National Association of Real Estate Investment Trusts (NAREIT)
has published a definition of FFO, real estate companies often modify this definition as they seek
to provide financial measures that meaningfully reflect their operations. FFO should not be
considered as an alternative to net income as an indication of a companys operating performance or
to cash flow from operating activities as a measure of its liquidity. It should be used in
conjunction with GAAP net income. FFO disclosed by other REITs may not be comparable to our AFFO
calculation.
NAREITs definition of FFO adjusts GAAP net income to exclude depreciation and gains/losses from
the sales of properties and adjusts for FFO applicable to unconsolidated partnerships and joint
ventures. We calculate AFFO in accordance with this definition and then include other adjustments to
GAAP net income to adjust for certain non-cash charges such as amortization of intangibles,
straight-line rents, impairment charges on real estate and unrealized foreign currency exchange
gains and losses. We exclude these items from GAAP net income as they are not the primary drivers
in our decision making process. Our assessment of our operations is focused on long-term
sustainability and not on such non-cash items, which may cause short-term fluctuations in net income
but that have no impact on cash flows and we therefore use AFFO as one measure of our operating performance when we formulate corporate goals and evaluate
the effectiveness of our strategies. As a result, we believe that AFFO is a useful supplemental measure for investors
to consider because it will help them to better understand and measure the performance of our business over time
without the potentially distorting impact of these short-term fluctuations.
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Corporate Property Associates 16 Global Incorporated
Adjusted Cash Flow from Operating Activities (Unaudited)
(in thousands, except share and per share amounts)
(in thousands, except share and per share amounts)
Nine months ended September 30, | ||||||||
2009 | 2008 | |||||||
Cash flow from operating activities as reported |
$ | 87,648 | $ | 96,116 | ||||
Adjustments: |
||||||||
Distributions received from equity investments in real estate in
excess of equity income, net (a) |
6,676 | 7,838 | ||||||
Distributions paid to noncontrolling interests, net (b) |
(13,887 | ) | (5,164 | ) | ||||
Changes in working capital (c) |
1,514 | (7,396 | ) | |||||
Adjusted cash flow from operating activities |
$ | 81,951 | $ | 91,394 | ||||
Adjusted cash flow per share |
$ | 0.67 | $ | 0.76 | ||||
Distributions declared per share |
$ | 0.4965 | $ | 0.4926 | ||||
Payout ratio (distributions per share/adjusted cash flow per share) |
74 | % | 65 | % | ||||
Weighted average shares outstanding |
122,791,365 | 120,899,625 | ||||||
(a) | To the extent we receive distributions in excess of the equity income that we recognize, we include such amounts in our evaluation of cash flow from core operations. | |
(b) | Represents noncontrolling interests share of distributions made by ventures that we consolidate in our financial statements. | |
(c) | Timing differences arising from the payment of certain liabilities in a period other than that in which the expense is recognized in determining net income may distort the actual cash flow that our core operations generate. We adjust our GAAP cash flow from operations to record such amounts in the period in which the liability was actually incurred. In addition, an adjustment to exclude the impact of escrow funds was introduced in the second quarter of 2009 as more often than not these funds are released to the lender. We believe this adjustment results in a more accurate presentation of this supplemental measure. |
Non-GAAP Financial Disclosure
Adjusted cash flow from operating activities refers to our cash provided by operating activities, as determined in
accordance with GAAP, adjusted primarily to reflect timing differences between the period an expense is incurred and
paid, to add cash distributions that we receive from our investments in unconsolidated real estate joint ventures in
excess of our equity investment in the joint ventures, and to subtract cash distributions that we make to our
noncontrolling partners in real estate joint ventures that we consolidate. We hold a number of interests in real estate
joint ventures, and we believe that adjusting our GAAP cash provided by operating activities to reflect these actual
cash receipts and cash payments may give investors a more accurate picture of our actual cash flow than GAAP cash
provided by operating activities alone and that it is a useful supplemental measure for investors to consider. We also
believe that adjusted cash flow from operating activities is a useful supplemental measure for assessing the cash flow
generated from our core operations, and we use this measure when evaluating distributions to shareholders. Adjusted
cash flow from operating activities should not be considered as an alternative for cash provided by operating
activities computed on a GAAP basis as a measure of our liquidity. Adjusted cash flow from operating activities may not
be comparable to similarly titled measures of other companies.
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Corporate Property Associates 16 Global Incorporated
Portfolio Diversification as of September 30, 2009 (Unaudited)
(in thousands)
Portfolio Diversification as of September 30, 2009 (Unaudited)
(in thousands)
Top Ten Tenants by Rent (Pro Rata Basis)
Tenant/Lease Guarantor | Annualized Rent | Percent | ||||||
Hellweg Die Profi-Baumärkte GmbH & Co. KG (a) |
$ | 14,265 | 7 | % | ||||
U-Haul Moving Partners, Inc. and Mercury Partners, L.P. |
10,008 | 5 | % | |||||
Telcordia Technologies, Inc. |
9,462 | 5 | % | |||||
Fraikin SAS (a) |
7,015 | 4 | % | |||||
Nordic Cold Storage LLC |
6,916 | 3 | % | |||||
The New York Times Company |
6,591 | 3 | % | |||||
International Aluminum Corp. and United States Aluminum
of Canada Ltd. (a) |
4,561 | 2 | % | |||||
Police Prefecture, French Government (a) |
4,426 | 2 | % | |||||
OBI A.G. (a) |
4,298 | 2 | % | |||||
Corinthian Colleges, Inc. |
4,253 | 2 | % | |||||
Total |
$ | 71,795 | 35 | % | ||||
Weighted Average Lease Term for Portfolio: 14.9 years
CPA®:16 Global Historical Occupancy
(a) | Rent amounts are subject to fluctuations in foreign currency exchange rates. | |
(b) | Percentage of the portfolios total pro rata square footage that was subject to lease. |
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Corporate Property Associates 16 Global Incorporated
Portfolio Diversification as of September 30, 2009 (Unaudited)
by Geography and Property Type (Pro Rata Basis)
(in thousands)
Portfolio Diversification as of September 30, 2009 (Unaudited)
by Geography and Property Type (Pro Rata Basis)
(in thousands)
Region | Annualized Rent | Percent | ||||||
U.S. |
||||||||
East |
$ | 43,853 | 22 | % | ||||
South |
30,090 | 15 | % | |||||
Midwest |
22,967 | 11 | % | |||||
West |
21,936 | 11 | % | |||||
U.S. Total |
118,846 | 59 | % | |||||
International
|
||||||||
Germany |
33,072 | 17 | % | |||||
France |
14,588 | 7 | % | |||||
Finland |
12,959 | 6 | % | |||||
United Kingdom |
5,047 | 3 | % | |||||
Poland |
4,297 | 2 | % | |||||
Asia (a) |
3,804 | 2 | % | |||||
Hungary |
3,751 | 2 | % | |||||
Other (b) |
3,523 | 2 | % | |||||
International Total |
81,041 | 41 | % | |||||
Total |
$ | 199,887 | 100 | % | ||||
Property Type | Annualized Rent | Percent | ||||||
Industrial |
$ | 81,605 | 41 | % | ||||
Office |
43,257 | 22 | % | |||||
Warehouse/Distribution |
32,470 | 16 | % | |||||
Retail |
24,288 | 12 | % | |||||
Self-Storage |
10,008 | 5 | % | |||||
Other Properties (c) |
8,259 | 4 | % | |||||
Total |
$ | 199,887 | 100 | % | ||||
(a) | Includes revenue from tenants in Malaysia and Thailand. | |
(b) | Includes revenue from tenants in Canada, Mexico and Sweden. | |
(c) | Includes revenue from tenants with the following property types: residential (2%), hospitality (1%), education (0.5%), and land (0.5%). |
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Corporate Property Associates 16 Global Incorporated
Portfolio Diversification as of September 30, 2009 (Unaudited)
by Tenant Industry (Pro Rata Basis)
(in thousands)
Portfolio Diversification as of September 30, 2009 (Unaudited)
by Tenant Industry (Pro Rata Basis)
(in thousands)
Industry Type (a) | Annualized Rent | Percent | ||||||
Retail Trade |
$ | 31,526 | 16 | % | ||||
Automobile |
16,644 | 8 | % | |||||
Chemicals, Plastics, Rubber, and Glass |
16,551 | 8 | % | |||||
Electronics |
14,335 | 7 | % | |||||
Healthcare, Education and Childcare |
12,053 | 6 | % | |||||
Transportation Cargo |
10,465 | 5 | % | |||||
Telecommunications |
9,462 | 5 | % | |||||
Construction and Building |
9,326 | 5 | % | |||||
Consumer Non-durable Goods |
9,215 | 5 | % | |||||
Media: Printing and Publishing |
8,716 | 4 | % | |||||
Beverages, Food, and Tobacco |
8,424 | 4 | % | |||||
Business and Commercial Services |
6,916 | 4 | % | |||||
Machinery |
6,703 | 3 | % | |||||
Buildings and Real Estate |
6,497 | 3 | % | |||||
Textiles, Leather, and Apparel |
5,337 | 3 | % | |||||
Insurance |
5,168 | 3 | % | |||||
Federal, State and Local Government |
4,426 | 2 | % | |||||
Transportation Personal |
3,510 | 2 | % | |||||
Grocery |
3,450 | 2 | % | |||||
Mining, Metals, and Primary Metal Industries |
2,540 | 1 | % | |||||
Aerospace and Defense |
2,232 | 1 | % | |||||
Other (b) |
6,391 | 3 | % | |||||
Total |
$ | 199,887 | 100 | % | ||||
(a) | Based on the Moodys Classification System and information provided by the tenant. | |
(b) | Includes revenue from tenants in the following industries: hotels and gaming (1.5%), consumer services (1.2%), and utilities (0.5%). |
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