W. P. Carey Inc. - FORM 8-K - EX-99.2 - EXHIBIT

Attached files

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8-K - 8-K - W. P. Carey Inc.	wpc2013q48-ksupplemental.htm
EX-99.1 - EXHIBIT - W. P. Carey Inc.	wpc2013q48-kerexh991.htm

Exhibit 99.2

W. P. CAREY INC.

Supplemental Unaudited Operating and Financial Data

As of December 31, 2013

Important Disclosures About this Supplemental Package

As used in this supplemental package, the terms “W. P. Carey,” “WPC,” “the Company,” “we,” “us,” and “our” include W. P. Carey Inc., its consolidated subsidiaries, and predecessors, unless otherwise indicated. The “CPA^®:15 Merger” means our merger with Corporate Property Associates 15 Incorporated (“CPA^®:15”), which was completed on September 28, 2012. The “CPA^®:16 Merger” means our merger with Corporate Property Associates 16 – Global Incorporated (“CPA^®:16 – Global”), which was completed on January 31, 2014. The “Combined Company” means WPC and CPA^®:16 – Global. “CPA^® REITs” means CPA^®:15 (through the date of the CPA^®:15 Merger), CPA^®:16 – Global, Corporate Property Associates 17 – Global Incorporated (“CPA^®:17 – Global”), and Corporate Property Associates 18 – Global Incorporated (“CPA^®:18 – Global”). The “Managed REITs” means the CPA^® REITs and Carey Watermark Investors Incorporated (“CWI”). “W. P. Carey Group” means W. P. Carey, together with the Managed REITs.

Important Note Regarding Non-GAAP Financial Measures

This supplemental package includes certain “non-GAAP” supplemental metrics that are not defined by generally accepted accounting principles (“GAAP”), including earnings before interest, taxes, depreciation, and amortization (“EBITDA”), adjusted EBITDA, funds from operations (“FFO”), funds from operations – as adjusted (“AFFO”), pro rata net operating income (“NOI”), pro rata debt, total adjusted real estate revenue, total adjusted general and administrative expense (“Adjusted G&A”), and adjusted revenue. A description of these non-GAAP financial measures and reconciliations to their most directly comparable GAAP measures are provided on page 44 within this supplemental package. FFO is non-GAAP measure defined by the National Association of Real Estate Investments Trusts (“NAREIT”).

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 (the “Act”) and the Securities Exchange Act of 1934, as amended (the “Exchange Act”), both amended by the Private Securities Litigation Reform Act of 1955. The forward-looking statements include, among other things, statements regarding the intent, belief, or expectations of W. P. Carey and can be identified by the use of words such as “may,” “will,” “should,” “would,” “assume,” “outlook,” “seek,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “estimate,” “forecast,” and other comparable terms. These forward looking statements include, but are not limited to, statements regarding the benefits of the CPA^®:16 Merger, annualized dividends, funds from operations coverage, integration plans and expected synergies, and anticipated future financial and operating performance and results, including estimates of growth. These statements are based on the current expectations of the management of W. P. Carey. It is important to note that W. P. Carey’s actual results could be materially different from those projected in such forward-looking statements. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Other unknown or unpredictable factors could also have material adverse effects on future results, performance or achievements of W. P. Carey. Discussions of some of these other important factors and assumptions are contained in W. P. Carey’s filings with the Securities and Exchange Commission (“SEC”) and are available at the SEC’s website at http://www.sec.gov, including the Annual Report on Form 10-K for the year ended December 31, 2013 as filed with the SEC on March 3, 2014. In light of these risks, uncertainties, assumptions, and factors, the forward-looking events discussed in this communication may not occur. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this communication. Except as required under the Federal securities laws and the rules and regulations of the SEC, W. P. Carey does not undertake any obligation to release publicly any revisions to the forward-looking statements to reflect events or circumstances after the date of this communication or to reflect the occurrence of unanticipated events.

Earnings Release and Supplemental

Financial Information

Unaudited, Fourth Quarter 2013

March 3, 2014

W. P. CAREY INC.

Supplemental Unaudited Operating and Financial Data

As of December 31, 2013



Highlights
Company Overview	1
Financial and Operational Statistics	2

Financial Information
Consolidated Balance Sheets	4
Consolidated Statements of Income	5
Reconciliation of Net Income to Funds from Operations − as Adjusted (AFFO)	6
Reconciliation of Consolidated Statement of Income to AFFO - Current Quarter	8
Reconciliation of Consolidated Statement of Income to AFFO - Year Ended December 31, 2013	10
Reconciliation of GAAP Net Income to Adjusted EBITDA	12
Adjusted Revenue Analysis	13
Total Adjusted Real Estate Revenue − W. P. Carey Group	15
Adjusted G&A	16
Business Segment and Financial Information	17
Pro Rata NOI	19
Selected Data for the Managed REITs	20

2013 Investment Activity
Owned Portfolio − Acquisitions and Dispositions	21
Managed REITs − Acquisitions	22
Managed REITs − Dispositions	24

Combined Company Information
Portfolio Debt Overview	26
Joint Venture Information	28
Diversification of Top Ten Tenants by Rent	29
Diversification by Property Type	30
Diversification by Tenant Industry	31
Diversification by Geography	33
Lease Maturities	34
Tenants by Annualized Contractual Minimum Base Rent	35

Unencumbered Combined Company Portfolio Information
Diversification by Property Type	39
Diversification by Tenant Industry	40
Diversification by Geography	42
Lease Maturities	43

Terms and Definitions	44

Company Overview



Key Company Contacts		Executive Offices
Trevor P. Bond	President, Chief Executive Officer and Director	50 Rockefeller Plaza
Catherine D. Rice	Chief Financial Officer and Managing Director	New York, NY 10020
Thomas E. Zacharias	Chief Operating Officer and Managing Director	Tel: 1-800-WPCAREY or (212) 492-1100
Peter Sands	Director, Investor Relations	Fax: (212) 492-8922
		Web Site Address: www.wpcarey.com
Banks
Bank of America, N.A.	Administrative Agent
JPMorgan Chase Bank, N.A.	Syndication Agent
Barclays Bank PLC	Documentation Agent
Citigroup Global Markets Inc.	Documentation Agent
U.S Bank National Association	Documentation Agent
Wells Fargo Bank	Documentation Agent
Capital One, N.A	Senior Managing Agent
Regions Bank	Senior Managing Agent
Fifth Third Bank	Managing Agent
PNC Bank, National Association	Managing Agent
RBS Citizens, N.A	Managing Agent
Comerica Bank	Participant
BMO Harris Bank, N.A	Participant
Signature Bank	Participant

Analyst Coverage
Daniel P. Donlan	Ladenburg Thalmann & Co., Inc.
Sheila McGrath	Evercore Partners Inc.
Paul Adornato	BMO Capital Markets



Stock Data (NYSE: WPC)	Fourth Quarter 2013			Third Quarter 2013			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012
High Price ^(a)	$	67.84		$	72.19		$	79.34		$	68.99		$	54.70
Low Price ^(a)	59.75			63.20			61.90			51.60			45.94
Closing Price	61.35			64.70			66.17			67.40			52.15
Distributions paid per share	$	0.86		$	0.84		$	0.82		$	0.66		$	0.65
Distribution yield
(cash distribution / closing stock price)	1.40		%	1.30		%	1.24		%	0.98		%	1.25		%
Shares outstanding at quarter end	68,266,570			68,253,736			68,217,189			68,762,259			68,485,525
Market value of outstanding shares at quarter end ($'000)	$	4,188,154		$	4,416,017		$	4,513,931		$	4,634,576		$	3,571,520

________

(a) Reflects the trading high and low prices during the quarter.



		Investing for the long run^TM \| 1

Financial and Operational Statistics (Unaudited)



As of and for the Year Ended December 31, 2013
Market Capitalization					WPC
Shares outstanding at end of period					68,266,570
Stock price at end of period					$	61.35
Market capitalization (equity capitalization) ($'000)					$	4,188,154
Total capitalization ($'000)^(a)					$	6,272,577
Enterprise value ($'000)^(b)					$	6,155,058
Combined Enterprise Value ($'000) ^(c)					$	15,141,475
High stock price					$	79.34
Low stock price					$	51.60
Standard & Poor's Rating Services ^(d)					BBB stable outlook
Moody's Investors Service ^(d)					Baa2 stable outlook
Financial Ratios					WPC
Debt to total capitalization					33.2		%
Net debt to total capitalization^(e)					31.4		%
Net debt to enterprise value^(e)					32.0		%
Adjusted EBITDA ($'000)^(f)					$	406,651
Net debt to adjusted EBITDA^(e)					4.8
Total debt to gross assets^(g)					43.0		%
Unsecured debt to gross assets					11.9		%
Interest coverage^(h)					3.92
Adjusted G&A / Total adjusted real estate revenue⁽ⁱ⁾					7.7		%
Dividend^(j)					$	3.18
Dividend payout^(k)					75.4		%
Weighted-average cost of debt					4.1		%
Portfolio Information	CPA^®:17 − Global		CPA^®:18 − Global		Combined Company ^(l)
Number of leased properties	352		9		708
Number of operating properties^(m)	75		—		4
Total properties	427		9		712
Total square feet - leased properties (millions)	34.0		1.3		84.3
Total square feet - operating properties (millions)	5.6		—		0.3
Total square feet (millions)	39.6		1.3		84.6
Number of tenants⁽ⁿ⁾	99		3		236
Occupancy⁽ⁿ⁾	100.0	%	100.0	%	98.3		%
Weighted-average lease term (years)	15.3		19.3		9.0
Percent of investment grade tenants^(o)	20.3	%	29.8	%	23.2		%

__________


(a)	Represents market capitalization plus total pro rata debt. Pro rata debt is a non-GAAP measure. See the Terms and Definitions section that begins on page 44 for a description of our non-GAAP measures.


(b)	Represents total capitalization less cash.


(c)	Represents WPC's enterprise value plus the assets under management for the Managed REITs.


(d)	In January 2014, WPC received an investment grade corporate rating of BBB with a stable outlook from Standard & Poor’s Rating Services and an investment grade issuer rating of Baa2 with a stable outlook from Moody’s Investors Service.


(e)	Net debt represents pro rata debt less cash. Pro rata debt is a non-GAAP measure. See the Terms and Definitions section that begins on page 44 for a description of our non-GAAP measures.


(f)	Represents the actual Adjusted EBITDA for the year ended December 31, 2013. Adjusted EBITDA, as presented on page 12, is a non-GAAP measure. See the Terms and Definitions section that begins on page 44 for a description of our non-GAAP measures.


(g)	Gross assets represent total assets before accumulated depreciation.


(h)	Computed by dividing Adjusted EBITDA by interest expense.



		Investing for the long run^TM \| 2

Financial and Operational Statistics (Unaudited)

(Continued)

(i)

Adjusted G&A, as presented on page 16, represents general and administrative expenses excluding dealer manager fee-related expenses, and includes reimbursable expenses. Total adjusted real estate revenue represents total pro rata real estate revenues for WPC and the Managed REITs, as presented on page 15. Adjusted G&A and total adjusted real estate revenue are non-GAAP measures. See the Terms and Definitions section that begins on page 44 for a description of our non-GAAP measures.


(j)	Represents the sum of the quarterly dividend paid per share for the year ended December 31, 2013 and excludes a special distribution of $0.11 per share paid in January 2014 to stockholders on record at December 31, 2013.


(k)	Computed by dividing sum of the quarterly dividends paid per share for the year by actual AFFO per share.


(l)	On January 31, 2014, we completed the CPA^®:16 Merger. As such, this represents the portfolio information for both WPC and CPA^®:16 – Global as of December 31, 2013. See the section beginning on page 25 for further information regarding the Combined Company.


(m)	During the fourth quarter of 2013, WPC sold 19 self-storage properties in one transaction and one hotel.


(n)	Excludes all operating properties (i.e., hotels, shopping centers, and self-storage facilities).


(o)	Investment grade tenants are defined as having a BBB- rating or above. Percentage of portfolio is calculated based on pro rata annualized contractual minimum base rent as of December 31, 2013. Pro rata amounts are non-GAAP measures. See the Terms and Definitions section that begins on page 44 for a description of our non-GAAP measures.



		Investing for the long run^TM \| 3

Consolidated Balance Sheets

(in thousands)



	December 31,
	2013			2012
Assets
Investments in real estate:
Real estate, at cost	$	2,516,325		$	2,334,488
Operating real estate, at cost	6,024			99,703
Accumulated depreciation	(168,958		)	(136,068		)
Net investments in properties	2,353,391			2,298,123
Net investments in direct financing leases	363,420			376,005
Assets held for sale	86,823			1,445
Equity investments in real estate and the Managed REITs	530,020			565,626
Net investments in real estate	3,333,654			3,241,199
Cash and cash equivalents	117,519			123,904
Due from affiliates	32,034			36,002
Goodwill	350,208			329,132
In-place lease intangible assets, net	467,127			447,278
Above-market rent intangible assets, net	241,975			279,885
Other assets, net	136,433			151,642
Total Assets	$	4,678,950		$	4,609,042

Liabilities and Equity
Liabilities:
Non-recourse debt	$	1,492,410		$	1,715,397
Senior credit facility and unsecured term loan	575,000			253,000
Below-market rent and other intangible liabilities	128,202			106,448
Accounts payable, accrued expenses and other liabilities	161,369			158,684
Income taxes, net	44,056			24,959
Distributions payable	67,746			45,700
Total liabilities	2,468,783			2,304,188
Redeemable noncontrolling interest	7,436			7,531
Redeemable securities - related party	—			40,000

Equity:
W. P. Carey stockholders' equity:
Common stock	69			69
Additional paid-in capital	2,256,503			2,175,820
Distributions in excess of accumulated earnings	(318,577		)	(172,182		)
Deferred compensation obligation	11,354			8,358
Accumulated other comprehensive income (loss)	15,336			(4,649		)
Less: treasury stock, at cost	(60,270		)	(20,270		)
Total W. P. Carey stockholders' equity	1,904,415			1,987,146
Noncontrolling interests	298,316			270,177
Total equity	2,202,731			2,257,323
Total Liabilities and Equity	$	4,678,950		$	4,609,042



		Investing for the long run^TM \| 4

Consolidated Statements of Income

(in thousands, except share and per share amounts)



	Years Ended December 31,
	2013			2012			2011
Revenues
Total lease revenues	$	299,624		$	119,296		$	59,896
Reimbursed costs from affiliates	73,572			98,245			64,829
Structuring revenue from affiliates	46,589			48,355			46,831
Asset management revenue from affiliates	42,670			56,666			66,808
Other real estate income	16,341			9,885			7,168
Dealer manager fees from affiliates	10,856			19,914			11,664
Incentive, termination and subordinated disposition revenue from affiliates	199			—			52,515
	489,851			352,361			309,711
Operating Expenses
Depreciation and amortization	121,822			44,427			20,481
General and administrative	84,112			86,916			75,850
Reimbursable costs	73,572			98,245			64,829
Stock-based compensation expenses	37,280			26,241			17,750
Property expenses	20,840			11,534			8,852
Merger and acquisition expenses	9,230			31,639			33
Other real estate expenses	556			489			478
Impairment charges	5,294			—			(1,365		)
	352,706			299,491			186,908
Other Income and Expenses
Net income from equity investments in real estate and the Managed REITs^(a)	52,731			62,392			51,228
Other income and (expenses)	7,997			3,396			4,579
Other interest income	1,092			1,332			1,996
Gain on change in control of interests	—			20,744			27,859
Interest expense	(103,728		)	(46,448		)	(18,210		)
	(41,908		)	41,416			67,452
Income from continuing operations before income taxes	95,237			94,286			190,255
Provision for income taxes	(1,252		)	(6,772		)	(37,214		)
Income from continuing operations	93,985			87,514			153,041
Discontinued Operations
Gain (loss) on sale of real estate, net of tax	40,043			(5,015		)	(3,391		)
Income from operations of discontinued properties, net of tax	8,967			3,242			318
Gain on deconsolidation of a subsidiary, net of tax	—			—			1,008
Impairment charges, net of tax	(8,415		)	(22,962		)	(11,838		)
Loss on extinguishment of debt, net of tax	(2,415		)	—			—
Income (loss) from discontinued operations, net of tax	38,180			(24,735		)	(13,903		)
Net Income	132,165			62,779			139,138
Net (income) loss attributable to noncontrolling interests	(32,936		)	(607		)	1,864
Net income attributable to redeemable noncontrolling interests	(353		)	(40		)	(1,923		)
Net Income Attributable to W. P. Carey	$	98,876		$	62,132		$	139,079

Basic Earnings Per Share
Income from continuing operations attributable to W. P. Carey	$	1.22		$	1.83		$	3.78
Income (loss) from discontinued operations attributable to W. P. Carey	0.21			(0.53		)	(0.34		)
Net Income Attributable to W. P. Carey	$	1.43		$	1.30		$	3.44

Diluted Earnings Per Share
Income from continuing operations attributable to W. P. Carey	$	1.21		$	1.80		$	3.76
Income (loss) from discontinued operations attributable to W. P. Carey	0.20			(0.52		)	(0.34		)
Net Income Attributable to W. P. Carey	$	1.41		$	1.28		$	3.42

Weighted Average Shares Outstanding
Basic	68,691,046			47,389,460			39,819,475
Diluted	69,708,008			48,078,474			40,098,095

Amounts Attributable to W. P. Carey
Income from continuing operations, net of tax	$	84,637		$	87,571		$	153,011
Income (loss) from discontinued operations, net of tax	14,239			(25,439		)	(13,932		)
Net Income	$	98,876		$	62,132		$	139,079

__________


(a)	Net income from equity investments in real estate and the Managed REITs for the year ended December 31, 2013 includes net income from our equity investments in real estate of $22.6 million, income from our ownership in the Managed REITs of $1.9 million, and income from our special general partnership interests in the Managed REITs of $28.2 million.



		Investing for the long run^TM \| 5

Reconciliation of Net Income to Funds from Operations – As Adjusted (AFFO)

(in thousands, except share and per share amounts) (unaudited)



	Three Months Ended															Years Ended December 31,
Real Estate Ownership	December 31, 2013			September 30, 2013			June 30, 2013			March 31, 2013			December 31, 2012			2013			2012
Net income from real estate ownership attributable to W. P. Carey	$	21,021		$	13,695		$	43,107		$	16,692		$	5,507		$	94,515		$	44,895
Adjustments:
Depreciation and amortization of real property	31,390			30,483			30,170			29,687			28,652			121,730			45,982
Impairment charges	6,790			1,416			1,671			3,279			10,700			13,156			22,962
(Gain) loss on sale of real estate, net ^(a)	(39,422		)	(239		)	(981		)	931			4,240			(39,711		)	2,676
Proportionate share of adjustments to equity in net income
of partially-owned entities to arrive at FFO^(b)	4,917			2,365			(16,304		)	3,154			3,211			(5,868		)	(9,688		)
Proportionate share of adjustments for noncontrolling
interests to arrive at FFO	18,549			(4,252		)	(4,247		)	(4,267		)	(4,235		)	5,783			(5,504		)
Total adjustments:	22,224			29,773			10,309			32,784			42,568			95,090			56,428
FFO (as defined by NAREIT) - Real Estate Ownership^(c)	43,245			43,468			53,416			49,476			48,075			189,605			101,323
Adjustments:
Loss (gain) on change in control of interests^(d)	—			—			—			—			60			—			(20,734		)
Loss (gain) on extinguishment of debt	1,399			(143		)	(141		)	74			10			1,189			10
Other gains, net	(97		)	(32		)	—			(270		)	(12		)	(399		)	(12		)
Other depreciation, amortization and non-cash charges	88			(707		)	(515		)	800			(1,556		)	(334		)	(1,662		)
Stock-based compensation	(997		)	259			911			174			211			347			211
Deferred tax benefit	(3,777		)	(732		)	(21		)	(1,025		)	(644		)	(5,555		)	(2,745		)
Acquisition expense	89			1,076			2,909			—			—			4,074			—
Realized losses on foreign currency, derivatives, and other	503			67			102			52			171			724			828
Amortization of deferred financing costs	792			713			549			511			468			2,565			1,843
Straight-line and other rent adjustments	(1,643		)	(1,930		)	(2,277		)	(2,169		)	(2,248		)	(8,019		)	(4,446		)
Above- and below -market rent intangible lease amortization, net	7,374			7,330			7,237			7,256			7,534			29,197			7,696
CPA^®:15 Merger and CPA^®:16 Merger expenses ^(e)	2,238			2,463			218			111			1,049			5,030			41,338
Proportionate share of adjustments to equity in net income
of partially-owned entities to arrive at AFFO	398			306			279			278			123			1,261			(681		)
AFFO adjustments to equity earnings from equity investments	10,659			10,961			10,718			9,249			11,971			41,587			37,234
Hellweg 2 restructuring ^(f)	8,357			—			—			—			—			8,357			—
Proportionate share of adjustments for noncontrolling
interests to arrive at AFFO	(1,858		)	(1,470		)	(1,083		)	(1,561		)	(506		)	(5,972		)	(692		)
Total adjustments:	23,525			18,161			18,886			13,480			16,631			74,052			58,188
AFFO - Real Estate Ownership^(c)	$	66,770		$	61,629		$	72,302		$	62,956		$	64,706		$	263,657		$	159,511
Investment Management
Net income (loss) from investment management attributable to
W. P. Carey	$	2,001		$	4,811		$	60		$	(2,511	)	$	9,970		$	4,361		$	17,237
FFO (as defined by NAREIT) - Investment Management^(c)	2,001			4,811			60			(2,511		)	9,970			4,361			17,237
Adjustments:
Other depreciation, amortization and non-cash charges	271			264			253			262			226			1,050			960
Stock-based compensation	12,761			7,594			7,518			8,975			6,281			36,848			25,841
Deferred tax (benefit) expense	(4,703		)	(3,550		)	(7,815		)	2,253			(2,625		)	(13,815		)	(24,055		)
Impairment charge on marketable security	553			—			—			—			—			553			—
Realized (gains) losses on foreign currency	(4		)	(7		)	2			2			(55		)	(7		)	(61		)
Amortization of deferred financing costs	464			404			318			318			319			1,504			1,198
Total adjustments:	9,342			4,705			276			11,810			4,146			26,133			3,883
AFFO - Investment Management^(c)	$	11,343		$	9,516		$	336		$	9,299		$	14,116		$	30,494		$	21,120
Total Company
FFO (as defined by NAREIT)^(c)	$	45,246		$	48,279		$	53,476		$	46,965		$	58,045		$	193,966		$	118,560
FFO (as defined by NAREIT) per diluted share ^(c)	$	0.65		$	0.70		$	0.77		$	0.67		$	0.84		$	2.78		$	2.47
AFFO^(c)	$	78,113		$	71,145		$	72,638		$	72,255		$	78,822		$	294,151		$	180,631
AFFO per diluted share ^(c)	$	1.12		$	1.03		$	1.05		$	1.03		$	1.13		$	4.22		$	3.76
Diluted weighted average shares outstanding	69,628,498			69,400,825			69,493,902			69,975,293			69,505,871			69,708,008			48,078,474



		Investing for the long run^TM \| 6

Reconciliation of Net Income to Funds from Operations – As Adjusted (AFFO) - Notes

(Continued)

__________


(a)	(Gain) loss on sale of real estate for both the three months ended and the year ended December 31, 2013 primarily relates to an aggregate gain of $43.9 million recognized on the sale of 19 self-storage properties, of which $27.1 million is attributable to noncontrolling interest.


(b)	Proportionate share of adjustments to equity in net income of partially-owned entities to arrive at FFO for the three months ended June 30, 2013 and the year ended December 31, 2013, respectively, includes a $19.5 million gain on sale of our equity investments in U.S. Airways. During the year ended December 31, 2012, we recognized a $15.1 million gain on sale of our equity investment in Médica.


(c)	FFO and AFFO are non-GAAP measures. See the Terms and Definitions section that begins on page 44 for a description of our non-GAAP measures.

(d)

Gain on change in control of interests for the year ended December 31, 2012 represents a gain of $14.6 million recognized on our previously-held interest in shares of CPA^®:15 common stock, and a gain of $6.1 million recognized on the acquisition of the remaining interests in five investments from CPA^®:15, which we had previously accounted for under the equity method. We recognized a gain of $20.7 million to adjust the carrying value of our existing interests in these investments to their estimated fair values in connection with the CPA^®:15 Merger.


(e)	The year ended December 31, 2012 includes current tax expense of $9.6 million relating to the conversion of CPA^®:15 shares held by us before the CPA^®:15 Merger. There were no merger expenses incurred during 2013 in connection with the CPA^®:15 Merger.


(f)	In connection with the Hellweg 2 restructuring in October 2013, our share of the German real estate transfer tax incurred by Hellweg 2 was $8.4 million.



		Investing for the long run^TM \| 7

Reconciliation of Consolidated Statement of Income to AFFO – Current Quarter

(in thousands) (unaudited)



	Three Months Ended December 31, 2013
	GAAP - Basis^(a)			Add: Equity Investments^(b)			Less: Noncontrolling Interests^(c)			WPC's Pro Rata Share^(d)			AFFO Adjustments				AFFO
Revenues
Total lease revenues^(e)	$	77,479		$	9,162		$	(10,542	)	$	76,099		$	5,045		^(f)	$	81,144
Asset management revenue from affiliates	11,341			—			(146		)	11,195			—				11,195
Structuring revenue from affiliates	19,050			—			(427		)	18,623			—				18,623
Incentive termination and disposition revenue	199			—			—			199			—				199
Dealer manager fees	3,526			—			—			3,526			—				3,526
Reimbursed costs from affiliates	22,878			—			(2		)	22,876			—				22,876
Other real estate income:
Self-storage revenues	250			—			—			250			—				250
Hotel revenues	—			—			—			—			—				—
Pass-through income	3,546			166			(390		)	3,322			—				3,322
Other property and tenant income	739			84			(8		)	815			—				815
Total other real estate income	4,535			250			(398		)	4,387			—				4,387
Total Revenues	139,008			9,412			(11,515		)	136,905			5,045				141,950

Operating Expenses
General and administrative	24,903			9			(143		)	24,769			—				24,769
Merger and acquisition expenses	2,351			—			—			2,351			(2,326		)		25
Reimbursable costs	22,878			—			—			22,878			—				22,878
Stock-based compensation expense	11,764			—			(42		)	11,722			(11,722		)		—
Depreciation and amortization	32,142			2,149			(4,221		)	30,070			(28,389		)		1,681
Property expenses	5,603			632			(834		)	5,401			—				5,401
Other real estate expenses	141			—			—			141			—				141
Impairment charges	5,294			—			(1,695		)	3,599			(3,599		)		—
Total Operating Expenses	105,076			2,790			(6,935		)	100,931			(46,036		)		54,895

Other Income and Expenses
Other interest income	235			7			(28		)	214			—				214
Net income from equity investments in real estate and the Managed REITs:
Joint ventures^(g)	(7,916		)	7,916			—			—			—				—
Income related to our ownership in the Managed REITs	(782		)	—			—			(782		)	9,481				8,699
Income related to our general partnership interests	9,052			—			(387		)	8,665			1,178				9,843
Total net income from equity investments in real estate and the Managed REITs	354			7,916			(387		)	7,883			10,659				18,542
Other income and (expenses)	2,560			(2,764		)	(1,541		)	(1,745		)	1,262				(483		)
Interest expense	(26,132		)	(3,004		)	4,180			(24,956		)	2,363				(22,593		)
Total Other Income and Expenses	(22,983		)	2,155			2,224			(18,604		)	14,284				(4,320		)
Income from Continuing Operations before Income Tax	10,949			8,777			(2,356		)	17,370			65,365				82,735
Provision for income taxes	1,798			(8,777		)	(593		)	(7,572		)	494				(7,078		)
Income from Continuing Operations	12,747			—			(2,949		)	9,798			65,859				75,657

Discontinued Operations
Income from operations of discontinued properties	1,254			—			(12		)	1,242			1,214			^(h)	2,456
Loss on extinguishment of debt	(2,513		)	—			1,580			(933		)	933				—
Gain on the sale of real estate	39,421			—			(24,457		)	14,964			(14,964		)		—
Impairment charges	(2,049		)	—			—			(2,049		)	2,049				—
Income from Discontinued Operations, Net of Tax	36,113			—			(22,889		)	13,224			(10,768		)		2,456
Net Income	48,860			—			(25,838		)	23,022			55,091				78,113
Net (income) attributable to noncontrolling interests	(25,624		)	—			25,624			—			—				—
Net (income) attributable to redeemable noncontrolling interests	(214		)	—			214			—			—				—
Income / AFFO Attributable to W. P. Carey	$	23,022		$	—		$	—		$	23,022		$	55,091			$	78,113



		Investing for the long run^TM \| 8

Reconciliation of Consolidated Statement of Income to AFFO – Current Quarter

(Continued)

(in thousands) (unaudited)

The following table presents the components of our General and Administrative Expenses:



Three Months Ended December 31, 2013
	GAAP - Basis ^(a)			Add: Equity Investments ^(b)		Less: Noncontrolling Interests ^(c)			WPC's Pro Rata Share ^(d)			AFFO Adjustments		AFFO
General and Administrative
Compensation expense	$	18,484		$	—	$	(372	)	$	18,112		$	—	$	18,112
Organization and offering expenses	3,607			—		—			3,607			—		3,607
General and administrative professional fees	3,289			4		(99		)	3,194			—		3,194
Reimbursable expenses	(6,088		)	—		—			(6,088		)	—		(6,088		)
Office expenses	2,320			—		345			2,665			—		2,665
Other general and administrative	3,291			5		(17		)	3,279			—		3,279
Total General and Administrative	$	24,903		$	9	$	(143	)	$	24,769		$	—	$	24,769

The following table presents the components of Other Income and (Expenses):



Three Months Ended December 31, 2013
	GAAP - Basis ^(a)		Add: Equity Investments ^(b)			Less: Noncontrolling Interests^(c)			WPC's Pro Rata Share ^(d)			AFFO Adjustments			AFFO
Other Income and (Expenses)
Gain (loss) on real estate	$	—	$	(3,005	)	$	—		$	(3,005	)	$	3,005		$	—
Gain (loss) on foreign currency	576		—			(35		)	541			(541		)	—
Gain (loss) on derivatives	764		—			(257		)	507			(507		)	—
Gain (loss) on extinguishment of debt	1,115		—			(480		)	635			(635		)	—
Other gain (loss) ⁽ⁱ⁾	105		241			(769		)	(423		)	(60		)	(483		)
Total Other Income and (Expenses)	$	2,560	$	(2,764	)	$	(1,541	)	$	(1,745	)	$	1,262		$	(483	)

__________


(a)	Consolidated amounts shown represent WPC's Consolidated Statement of Income for the three months ended December 31, 2013.


(b)	Represents the break-out by line item of amounts recorded in net income from equity investments in real estate and the Managed REITs – Joint ventures.


(c)	Represents the break-out by line item of amounts recorded in noncontrolling interest and redeemable noncontrolling interest.


(d)	Represents our share in fully-owned entities and co-owned entities. Pro rata basis amounts are non-GAAP measures. See the Terms and Conditions section that begins on page 44 for a description of our non-GAAP measures.


(e)	Lease revenues on a pro rata basis in this schedule reflect only revenues from continuing operations. Lease revenues from discontinued operations for the three months ended December 31, 2013 were $2.2 million.


(f)	Represents adjustments for straight line and above/below market lease intangible amortization.


(g)	To calculate the pro rata amounts, equity investments under joint ventures have been reclassified to allocate their impact on each line item.


(h)	Represents depreciation and amortization related to discontinued operations.


(i)	Represents income in equity investments and noncontrolling interests that could not be broken-out by line item.



		Investing for the long run^TM \| 9

Reconciliation of Consolidated Statement of Income to AFFO – Year Ended December 31, 2013

(in thousands) (unaudited)



	Year Ended December 31, 2013
	GAAP - Basis^(a)			Add: Equity Investments^(b)			Less: Noncontrolling Interests ^(c)			WPC's Pro Rata Share^(d)			AFFO Adjustments				AFFO
Revenues
Total lease revenues^(e)	$	299,624		$	38,172		$	(41,365	)	$	296,431		$	18,337		^(f)	$	314,768
Asset management revenue from affiliates	42,670			—			(591		)	42,079			—				42,079
Structuring revenue from affiliates	46,589			—			(857		)	45,732			—				45,732
Incentive termination and disposition revenue	199			—			—			199			—				199
Dealer manager fees	10,856			—			—			10,856			—				10,856
Reimbursed costs from affiliates	73,572			—			(110		)	73,462			—				73,462
Other real estate income:
Self-storage revenues	956			—			—			956			—				956
Hotel revenues	—			—			—			—			—				—
Pass-through income	13,750			771			(1,756		)	12,765			—				12,765
Other property and tenant income	1,635			298			(19		)	1,914			—				1,914
Total other real estate income	16,341			1,069			(1,775		)	15,635			—				15,635
Total Revenues	489,851			39,241			(44,698		)	484,394			18,337				502,731

Operating Expenses
General and administrative	84,112			57			(1,743		)	82,426			—				82,426
Merger and acquisition expenses	9,230			—			—			9,230			(9,104		)		126
Reimbursable costs	73,572			—			2			73,574			—				73,574
Stock-based compensation	37,280			—			(135		)	37,145			(37,060		)		85
Depreciation and amortization	121,822			11,532			(16,933		)	116,421			(111,478		)		4,943
Property expenses	20,840			1,487			(3,034		)	19,293			—				19,293
Other real estate expenses	556			—			—			556			—				556
Impairment charges	5,294			—			(1,766		)	3,528			(3,528		)		—
Total Operating Expenses	352,706			13,076			(23,609		)	342,173			(161,170		)		181,003

Other Income and Expenses
Other interest income	1,092			601			(128		)	1,565			—				1,565
Net income from equity investments in real estate and the Managed REITs:
Joint ventures^(g)	22,615			(22,615		)	—			—			—				—
Income related to our ownership in the Managed REITs	2,886			—			—			2,886			34,696				37,582
Income related to our general partnership interests	27,230			—			(387		)	26,843			6,891				33,734
Total net income from equity investments in real estate and the Managed REITs	52,731			(22,615		)	(387		)	29,729			41,587				71,316
Other income and (expenses)	7,997			18,719			(4,003		)	22,713			(22,474		)		239
Interest expense	(103,728		)	(12,490		)	18,498			(97,720		)	8,091				(89,629		)
Total Other Income and Expenses	(41,908		)	(15,785		)	13,980			(43,713		)	27,204				(16,509		)
Income from Continuing Operations before Income Tax	95,237			10,380			(7,109		)	98,508			206,711				305,219
Provision for income taxes	(1,252		)	(10,380		)	434			(11,198		)	(10,380		)		(21,578		)
Income from Continuing Operations	93,985			—			(6,675		)	87,310			196,331				283,641
Discontinued Operations
Income from operations of discontinued properties	8,967			—			(3,737		)	5,230			5,280			^(h)	10,510
Loss on extinguishment of debt	(2,415		)	—			1,580			(835		)	835				—
Gain on the sale of real estate	40,043			—			(24,457		)	15,586			(15,586		)		—
Impairment charges	(8,415		)	—			—			(8,415		)	8,415				—
Income (loss) from Discontinued Operations, Net of Tax	38,180			—			(26,614		)	11,566			(1,056		)		10,510
Net Income	132,165			—			(33,289		)	98,876			195,275				294,151
Net (income) attributable to noncontrolling interests	(32,936		)	—			32,936			—			—				—
Net (income) attributable to redeemable noncontrolling interests	(353		)	—			353			—			—				—
Income / AFFO Attributable to W. P. Carey	$	98,876		$	—		$	—		$	98,876		$	195,275			$	294,151



		Investing for the long run^TM \| 10

Reconciliation of Consolidated Statement of Income to AFFO – Year Ended December 31, 2013

(Continued)

(in thousands) (unaudited)

The following table presents the components of our General and Administrative Expenses:



Year Ended December 31, 2013
	GAAP - Basis ^(a)			Add: Equity Investments ^(b)		Less: Noncontrolling Interests^(c)			WPC's Pro Rata Share^(d)			AFFO Adjustments		AFFO
General and Administrative
Compensation expense	$	64,356		$	—	$	(748	)	$	63,608		$	—	$	63,608
Organization and offering expenses	13,028			—		—			13,028			—		13,028
General and administrative professional fees	10,664			41		(313		)	10,392			—		10,392
Reimbursable expenses	(21,926		)	—		—			(21,926		)	—		(21,926		)
Office expenses	8,435			—		(627		)	7,808			—		7,808
Other general and administrative	9,555			16		(55		)	9,516			—		9,516
Total General and Administrative	$	84,112		$	57	$	(1,743	)	$	82,426		$	—	$	82,426

The following table presents the components of Other Income and (Expenses):



Year Ended December 31, 2013
	GAAP - Basis^(a)			Add: Equity Investments ^(b)		Less: Noncontrolling Interests ^(c)			WPC's Pro Rata Share ^(d)		AFFO Adjustments			AFFO
Other Income and (Expenses)
Gain (loss) on sale of real estate	$	(332	)	$	16,456	$	—		$	16,124	$	(16,124	)	$	—
Gain (loss) on foreign currency	1,468			—		(111		)	1,357		(1,357		)	—
Gain (loss) on derivatives	5,147			—		(1,308		)	3,839		(3,839		)	—
Gain (loss) on extinguishment of debt	1,226			—		(479		)	747		(747		)	—
Other gain (loss) ⁽ⁱ⁾	488			2,263		(2,105		)	646		(407		)	239
Total Other Income and (Expenses)	$	7,997		$	18,719	$	(4,003	)	$	22,713	$	(22,474	)	$	239

__________


(a)	Consolidated amounts shown represent WPC's Consolidated Statement of Income for the year ended December 31, 2013.


(b)	Represents the break-out by line item of amounts recorded in net income from equity investments in real estate and the Managed REITs – Joint ventures.


(c)	Represents the break-out by line item of amounts recorded in noncontrolling interest and redeemable noncontrolling interest.


(d)	Represents our share in fully-owned entities and co-owned entities. Pro rata basis amounts are non-GAAP measures. See the Terms and Conditions section that begins on page 44 for a description of our non-GAAP measures.


(e)	Lease revenues on a pro rata basis in this schedule reflect only revenues from continuing operations. Lease revenues from discontinued operations for the year ended December 31, 2013 were $10.2 million.


(f)	Represents adjustments for straight line and above/below market lease intangible amortization.


(g)	To calculate the pro rata amounts, equity investments under joint ventures have been reclassified to allocate their impact on each line item.


(h)	Represents depreciation and amortization related to discontinued operations.


(i)	Represents income in equity investments and noncontrolling interests that could not be broken-out by line item.



		Investing for the long run^TM \| 11

Reconciliation of GAAP Net Income to Adjusted EBITDA

(in thousands, except share and per share amounts) (unaudited)



	Three Months Ended															Years Ended December 31,
	December 31, 2013			September 30, 2013			June 30, 2013			March 31, 2013			December 31, 2012			2013			2012
Net Income Attributable to W. P. Carey	$	23,022		$	18,506		$	43,167		$	14,181		$	15,477		$	98,876		$	62,132
Adjustments:
Depreciation and amortization	33,120			31,673			31,157			30,983			30,108			126,933			51,006
Interest expense	26,605			27,586			27,023			26,979			28,250			108,193			50,709
(Benefit from) provision for income taxes	(1,989		)	5,375			(1,122		)	(1,233		)	6,591			1,031			6,790
EBITDA^(a)	80,758			83,140			100,225			70,910			80,426			335,033			170,637
Proportionate share of adjustments from equity method investments^(b)	15,200			15,926			16,060			17,011			14,831			64,197			58,430
Proportionate share of adjustments for noncontrolling interests^(b)	(7,806		)	(9,369		)	(9,391		)	(9,290		)	(9,313		)	(35,856		)	(9,744		)
	88,152			89,697			106,894			78,631			85,944			363,374			219,323
Management Adjustments:
Impairment charges	7,343			1,416			1,671			3,279			10,700			13,709			22,961
(Gain) loss on sale of real estate ^(c)	(39,421		)	(239		)	(981		)	931			1,081			(39,710		)	(483		)
Loss (gain) on extinguishment of debt	1,399			(143		)	(141		)	74			10			1,189			10
Stock-based compensation	11,764			7,853			8,429			9,149			6,492			37,195			26,052
Hellweg 2 restructuring ^(d)	8,357			—			—			—			—			8,357			—
Merger expenses	2,238			2,463			218			111			1,049			5,030			31,663
Losses (gains) on investment due to merger	—			—			—			—			49			—			(20,745		)
Realized and unrealized (gain) loss on foreign currency (net)	(576		)	(1,624		)	(365		)	1,097			(1,106		)	(1,468		)	(579		)
Realized and unrealized (gain) loss on derivatives (net)	(764		)	(671		)	(1,691		)	(2,022		)	(370		)	(5,148		)	(351		)
Proportionate share of adjustments from equity method investments^(e)	5,717			5,735			(14,611		)	4,010			5,941			851			(2,997		)
Proportionate share of adjustments for noncontrolling interests^(e)	22,310			166			394			402			71			23,272			(105		)
Total adjustments	18,367			14,956			(7,077		)	17,031			23,917			43,277			55,426
Adjusted EBITDA^(a)	$	106,519		$	104,653		$	99,817		$	95,662		$	109,861		$	406,651		$	274,749

EBITDA per diluted share^(a)	$	1.16		$	1.20		$	1.44		$	1.01		$	1.16		$	4.81		$	3.55
Adjusted EBITDA per diluted share^(a)	$	1.53		$	1.51		$	1.44		$	1.37		$	1.58		$	5.83		$	5.71
Diluted weighted average shares outstanding	69,628,498			69,400,825			69,493,902			69,975,293			69,505,871			69,708,008			48,078,474

__________


(a)	EBITDA and Adjusted EBITDA are non-GAAP measures. See the Terms and Definitions section that begins on page 44 for a description of our non-GAAP measures.


(b)	Incorporates the pro rata share of depreciation, interest expense and tax provision adjustments for unconsolidated subsidiaries and joint ventures.


(c)	(Gain) loss on sale of real estate for both the three months ended and the year ended December 31, 2013 primarily relates to an aggregate gain of $43.9 million recognized on the sale of 19 self-storage properties to an unrelated third party, of which $27.1 million is attributable to noncontrolling interest.


(d)	In connection with the Hellweg 2 restructuring in October 2013, our share of the German real estate transfer tax incurred by Hellweg 2 was $8.4 million.


(e)	Incorporates the pro rata share of impairments, loss on the sale of real estate, stock-based compensation, merger-related adjustments as well as the losses (gains) related to foreign exchange and derivative positions for unconsolidated subsidiaries and joint ventures.



		Investing for the long run^TM \| 12

Adjusted Revenue Analysis (Pro Rata-Basis)

(in thousands) (unaudited)



	Three Months Ended															Years Ended December 31,
Reconciliation of Adjusted Revenue	December 31, 2013			September 30, 2013			June 30, 2013			March 31, 2013			December 31, 2012			2013			2012
Real Estate Revenue:
Total lease revenue – as reported	$	77,479		$	75,702		$	73,984		$	72,459		$	71,835		$	299,624		$	119,296
Lease revenue – discontinued operations	2,228			2,194			2,737			2,999			3,873			10,158			8,837
Total consolidated lease revenue	79,707			77,896			76,721			75,458			75,708			309,782			128,133
Add: Pro rata share of revenue from equity investments	9,165			9,288			9,751			9,976			9,910			38,180			27,374
Less: Pro rata share of revenue due to noncontrolling interests	(10,542		)	(10,373		)	(10,272		)	(10,175		)	(10,289		)	(41,362		)	(11,550		)
Total pro rata net lease revenue	78,330			76,811			76,200			75,259			75,329			306,600			143,957
Add: Share of pro rata lease revenue – CPA^® REITs
CPA^®:15^(a)	—			—			—			—			—			—			12,726
CPA^®:16 – Global	14,011			14,071			14,109			14,062			13,954			56,253			56,362
CPA^®:17 – Global	1,546			1,367			1,190			1,058			883			5,161			3,070
CPA^®:18 – Global	2			33			—			—			—			35			—
Total share of pro rata lease revenue - CPA^® REITs	15,559			15,471			15,299			15,120			14,837			61,449			72,158
Add: share of lease revenue from special general partnership interest
CPA^®:16 – Global operating partnership	3,972			3,766			3,830			3,614			3,825			15,182			15,389
CPA^®:17 – Global operating partnership	4,218			3,557			4,847			4,277			4,395			16,899			14,620
CPA^®:18 – Global operating partnership	92			—			—			—			—			92			—
CWI operating partnership	1,948			—			—			—			—			1,948			—
Total share of lease revenue from special general partnership interest	10,230			7,323			8,677			7,891			8,220			34,121			30,009
Add: Other real estate income - as reported^(b)	4,535			4,108			3,675			4,023			3,467			16,341			9,885
Add: Other real estate income - discontinued operations	1,617			4,664			7,748			4,520			5,044			18,549			17,973
Less: Pro rata share of other real estate income to noncontrolling interests	(1,216		)	(2,679		)	(2,555		)	(2,497		)	(2,377		)	(8,947		)	(8,321		)
Total Real Estate Revenue	109,055			105,698			109,044			104,316			104,520			428,113			265,661
Investment Management Revenue:
CPA^®:15 ^(a)	—			—			—			—			—			—			18,545
CPA^®:16 – Global	4,373			4,426			4,465			4,498			4,624			17,762			18,553
CPA^®:17 – Global	5,792			5,636			5,311			5,111			4,696			21,850			18,919
CPA^®:18 – Global	85			32			—			—			—			117			—
CWI & Other	1,091			867			578			405			258			2,941			649
Asset management revenue - as reported	11,341			10,961			10,354			10,014			9,578			42,670			56,666
Structuring revenue - as reported^(c)	19,050			14,775			6,422			6,342			28,779			46,589			48,355
Incentive termination and disposition fee	199			—			—			—			—			199			—
Total Investment Management Revenue	30,590			25,736			16,776			16,356			38,357			89,458			105,021
Total Adjusted Revenue^(d)	$	139,645		$	131,434		$	125,820		$	120,672		$	142,877		$	517,571		$	370,682



		Investing for the long run^TM \| 13

Adjusted Revenue Analysis (Pro Rata-Basis) - Notes

(Continued)

__________


(a)	Represents pro rata lease revenue from CPA^®:15 through September 28, 2012, the date of the CPA^®:15 Merger.

(b)

Other real estate income generally consists of revenue from Carey Storage Management LLC (“Carey Storage”), a subsidiary that invests in domestic self-storage properties, and Livho, Inc. 19 of the 20 self-storage properties and the hotel owned by Livho, Inc. were sold during the fourth quarter of 2013. Other real estate income also includes lease termination payments and other non-rents related revenues from real estate ownership, and as a result, we expect Other real estate income to fluctuate period to period.

(c)

We earn structuring revenue on acquisitions structured on behalf of the Managed REITS and expect significant period-to-period variation in such revenue based on changes in investment volume. Investments structured on behalf of the Managed REITS totaled approximately $491 million, $429 million, $305 million, $193 million, and $736 million for the three months ended December 31, 2013, September 30, 2013, June 30, 2013, March 31, 2013, and December 31, 2012, respectively. For the years ended December 31, 2013 and 2012, investments structured on behalf of the Managed REITs totaled approximately $1.4 billion and $1.2 billion, respectively.

(d)

Total adjusted revenue excludes reimbursements of costs received from the Managed REITs as they have no impact on net income. Also excluded are dealer manager fees earned in connection with the public offerings of CPA^®:18 – Global (initial public offering commenced on May 7, 2013), CPA^®:17 – Global (the follow-on offering terminated on January 31, 2013) and CWI (the initial public offering terminated on September 15, 2013; no such fees were earned in 2013 in connection with CWI's follow-on offering, which commenced in December 2013), which are substantially offset by underwriting costs incurred in connection with the offerings. Adjusted revenue is a non-GAAP measure. See the Terms and Definitions section that begins on page 44 for a description of our non-GAAP measures.



		Investing for the long run^TM \| 14

Total Adjusted Real Estate Revenue – W. P. Carey Group

(in thousands) (unaudited)



	Three Months Ended											Years Ended December 31,
	December 31, 2013			September 30, 2013		June 30, 2013		March 31, 2013		December 31, 2012		2013		2012
W. P. Carey Pro Rata Revenue
W. P. Carey pro rata lease revenue	$	78,330		$	76,811	$	76,200	$	75,259	$	75,329	$	306,600	$	143,957
W. P. Carey other real estate income^(a)	4,936			6,093		8,868		6,046		6,134		25,943		19,537

CPA^® REITs Pro Rata Revenue
CPA^®:15 pro rata lease revenue^(b)	—			—		—		—		—		—		161,154
CPA^®:15 other income^(b)	—			—		—		—		—		—		10,253
CPA^®:16 − Global pro rata lease revenue	75,614			75,937		76,058		76,176		76,129		303,785		309,748
CPA^®:16 − Global other income	10,672			12,592		18,733		9,817		9,947		51,814		40,935
CPA^®:17 − Global pro rata lease revenue	80,963			78,114		74,836		73,975		68,446		307,888		250,407
CPA^®:17 − Global other income	21,205			20,510		20,468		19,062		26,681		81,245		63,265
CPA^®:18 − Global pro rata lease revenue	1,262			473		—		—		—		1,735		—
CWI hotel revenue	48,540			40,804		20,939		11,296		6,256		121,579		12,972
CWI other income	(196		)	117		350		132		266		403		1,611
Total adjusted real estate revenue^(c)	$	321,326		$	311,451	$	296,452	$	271,763	$	269,188	$	1,200,992	$	1,013,839

__________


(a)	Other real estate income includes lease termination payments and other non-rent related revenues from real estate ownership, and as a result, we expect Other real estate income to fluctuate period to period. The hotel owned by Livho and 19 of the 20 self-storage properties owned by Carey Storage were sold in the fourth quarter of 2013.


(b)	Represents pro rata lease revenue from CPA^®:15 through September 28, 2012, the date of the CPA^®:15 Merger, for the year ended December 31, 2012.


(c)	Total adjusted real estate revenue is a non-GAAP measure. See the Terms and Definitions section that begins on page 44 for a description of our non-GAAP measures.



		Investing for the long run^TM \| 15

Adjusted G&A

(in thousands, except percentages) (unaudited)



	Three Months Ended															Years Ended December 31,
	December 31, 2013			September 30, 2013			June 30, 2013			March 31, 2013			December 31, 2012			2013			2012
General and administrative, as reported ^(a)	$	24,903		$	20,902		$	18,609		$	19,698		$	28,948		$	84,112		$	86,916
Less:
Dealer manager fee-related expenses^(b)	(3,607		)	(4,296		)	(3,163		)	(1,963		)	(6,913		)	(13,029		)	(17,787		)
Add:
Reimbursable expenses^(c)	6,088			5,358			4,375			6,105			4,533			21,926			16,309
Adjusted G&A^(d)	$	27,384		$	21,964		$	19,821		$	23,840		$	26,568		$	93,009		$	85,438

Total adjusted real estate revenue	$	321,326		$	311,451		$	296,452		$	271,763		$	269,188		$	1,200,992		$	1,013,839
As a % of Total adjusted real estate revenue	8.5		%	7.1		%	6.7		%	8.8		%	9.9		%	7.7		%	8.4		%

__________


(a)	Effective October 1, 2013, we have excluded stock-based compensation from the general and administrative line item as we disclose this separately on the face of the Consolidated Statements of Income. Results for the prior periods have been adjusted to conform to the current presentation.


(b)	Represents a reimbursement of dealer manager fee-related expenses, which substantially offsets Dealer manager revenues. Dealer manager revenues are not included in the calculation of total adjusted real estate revenue; therefore, the offsetting expense is excluded from the calculation of Adjusted G&A expense.


(c)	Effective January 1, 2013, we have included reimbursable expenses in the Adjusted G&A presentation. Results for the prior periods have been adjusted to conform to the current presentation.


(d)	Adjusted G&A and total adjusted real estate revenue are non-GAAP measures. See the Terms and Definitions section that begins on page 44 for a description of our non-GAAP measures.



		Investing for the long run^TM \| 16

Business Segment and Financial Information (Pro Rata-Basis)

(in thousands, except share and per share amounts, and percentages) (unaudited)



REAL ESTATE OWNERSHIP							Three Months Ended December 31, 2013		Annualized
Pro Rata NOI (Includes JVs)^{(a) (b)}
Pro Rata NOI							$	81,084	$	324,336

Special General Partnership Interest in Cash Flow (Managed REITs)							Three Months Ended December 31, 2013		Annualized
CPA^®:16 − Global operating partnership ^(c)							$	3,972	$	15,888
CPA^®:17 − Global operating partnership							4,218		16,872
CPA^®:18 − Global operating partnership							92		368
CWI operating partnership							1,948		7,792
Total							$	10,230	$	40,920

			Three Months Ended December 31, 2013
Other Real Estate Income			Revenues		Expenses		Net Income		Annualized
Storage income			$	250	$	141	$	109	$	436
Managed REITs - Shares Owned^(d)	Current Annualized Distribution		Distributions Received by WPC for the Year Ended 2013		Most Recent NAV / Offering Price per Share^(e)		Shares Owned		Total Value
CPA^®:17 − Global (1.9% ownership)	6.5	%	$	2,950	$	10.00	6,061,989		$	60,620
CPA^®:18 − Global (0.1% ownership) ^(f)	6.1	%	3		9.93		31,125		311
CWI (0.5% ownership) ^(g)	5.5	%	12		9.00		364,421		3,280
Total			$	2,965			6,457,535		$	64,211



INVESTMENT MANAGEMENT^(h)			Trailing Twelve Months Ended December 31, 2013		Three Months Ended December 31, 2013		Annualized
Asset management revenue			$	42,670	$	11,341	$	45,364
Structuring revenue			46,589		19,050		76,200
Dealer manager fees			10,856		3,526		14,104
Total			$	100,115	$	33,917	$	135,668

CONSOLIDATED BALANCE SHEET INFORMATION
Assets
Cash	$	117,519			Pro rata debt (Includes JVs)^(b)		$	1,509,423
Due from affiliates	32,034				Unsecured Term Loan and Prior Senior Credit Facility		575,000
Other assets, net	136,433				Accounts Payable		161,369
					Income Taxes, net		44,056
Shares Outstanding	68,266,570				Distributions Payable		67,746

__________


(a)	Refer to schedule on page 19 for a reconciliation from reported lease revenues and property expenses to pro rata lease revenues and pro rata non-reimbursable property expenses that includes our joint venture (“JV”) interests.


(b)	Pro rata NOI and pro rata debt are non-GAAP measures. See page 19 for the detailed reconciliation of Pro rata NOI. See the Terms and Definitions section that begins on page 44 for a description of our non-GAAP measures.


(c)	On January 31, 2014, CPA^®:16 – Global merged with and into one of our subsidiaries pursuant to a previously announced merger agreement.


(d)	Excludes investments in the operating partnerships of the Managed REITs.

(e)

The estimated net asset value per share (“NAV”) for CWI is as of September 30, 2013 and is adjusted as disclosed in footnote (g). NAVs have not been determined for CPA^®:17 – Global and CPA^®:18 – Global; therefore, their offering prices have been presented in the table above. For CPA^®:17 – Global, the offering price shown is from its follow-on offering, which terminated in January 2013. For additional information about CPA^®:18 – Global’s offering price, see footnote (f) below.


(f)	The offering price shown for CPA^®:18 – Global is calculated by using a weighted-average of the Class A and Class C common shares outstanding at December 31, 2013 at their initial offering price of $10.00 per share and $9.35 per share, respectively.



		Investing for the long run^TM \| 17

Business Segment and Financial Information (Pro Rata-Basis)

(Continued)

(g)

CWI’s NAV was estimated at $10.24 per share as of September 30, 2013, and is based on shares outstanding at November 30, 2013. In December 2013, CWI declared a special stock dividend where stockholders of record as of the close of business on December 16, 2013 received 0.1375 shares of its common stock for each share owned. Shares were issued on December 19, 2013. As a result of the increased number of outstanding shares of CWI’s common stock due to the stock dividend, CWI's estimated NAV was adjusted from $10.24 to $9.00. This adjustment facilitates equivalent treatment of investors in CWI’s initial public offering and investors in its follow-on offering and enables CWI to offer its stock in the follow-on offering at a consistent price of $10.00 per share, inclusive of commissions and offering costs.


(h)	Excludes the asset management revenue related to CPA^®:15, which ceased upon the completion of the CPA^®:15 Merger on September 28, 2012.



		Investing for the long run^TM \| 18

Pro Rata NOI

(in thousands) (unaudited)



Reconciliation of Pro Rata NOI	Three Months Ended December 31, 2013			Annualized
Pro Rata Lease Revenue
Total lease revenue – as reported	$	77,479		$	309,916
Total lease revenue – discontinued operations	2,228			8,912
Total consolidated lease revenue	79,707			318,828
Add: Pro rata share of revenue from equity investments	9,165			36,660
Less: Pro rata share of revenue due to noncontrolling interests	(10,542		)	(42,168		)
Total pro rata lease revenue^(a)	78,330			313,320
Less: Straight line rent amortization	(1,453		)	(5,812		)
Less: Above-and below -market rent intangible lease amortization	6,308			25,232
Total Pro Rata Cash Lease Revenues	83,185			332,740
Pro Rata Non-Reimbursable Property Expenses:
Property expenses – as reported	5,603			22,412
Property expenses – discontinued operations	388			1,552
Total consolidated property expenses	5,991			23,964
Less: Reimbursable property expenses^(b)	(3,629		)	(14,516		)
Total non-reimbursable property expenses	2,362			9,448
Add: Pro rata share of non-reimbursable property expenses from equity investments	180			720
Less: Pro rata share of non-reimbursable property expenses due to noncontrolling interests	(441		)	(1,764		)
Total Pro Rata Non-Reimbursable Property Expenses	2,101			8,404
Pro Rata NOI^(c)	$	81,084		$	324,336

__________


(a)	Total pro rata lease revenues differ from the amount presented in the reconciliation of Consolidated Statement of Income to AFFO due to the inclusion of discontinued operations.


(b)	Reimbursable property expenses are entirely offset by revenues recorded in Other real estate income; therefore, these reimbursements are not included in lease revenue.


(c)	Pro rata NOI is a non-GAAP measure. See the Terms and Definitions section that begins on page 44 for a description of our non-GAAP financial measures.



		Investing for the long run^TM \| 19

Selected Data for the Managed REITs

(in thousands, except share amounts, per share amounts and percentages) (unaudited)



As of December 31, 2013
Selected Data for the Managed REITs
	Ownership		Shares Outstanding		Most Recent Offering Price/NAV^(a)	Current Annualized Distribution^(b)		Distributions Received by WPC		Asset Management Revenue^(c)			Structuring Revenue^(d)			Special General Partnership Distributions
CPA^®:17 − Global	1.9	%	317,353,899		10.00	6.5	%	2,950		0.50		%	4.5		%	10.0		%
CPA^®:18 − Global	0.1	%	24,066,098	^(e)	9.93	6.1	%	3		0.50		%	4.5		%	10.0		%
CWI ^(f)	0.5	%	67,703,835		9.00	5.5	%	12		0.50		%	2.5		%	10.0		%

					Inception Date	Square Feet		Total Domestic AUM		Total International AUM			Total AUM			Total Debt
CPA^®:17 − Global					2007	34,033		$	2,691,888	$	1,754,271		$	4,446,159		$	1,915,601
CPA^®:18 − Global					2012	1,339		79,981		73,757			153,738			85,060
CWI					2010	N/A		1,080,058		—			1,080,058			563,058
Total						35,372		$	3,851,927	$	1,828,028		$	5,679,955		$	2,563,719

__________

(a)

WPC generally calculates the NAV for each of the Managed REITs, relying in part on an estimate of the fair market value of each of the Managed REITs’ real estate portfolio provided by a third party, adjusted to give effect to the estimated fair value of mortgages encumbering the Managed REITs’ assets as well as other adjustments. The NAVs are based on a number of variables. The NAV for CWI is as of September 30, 2013 and adjusted as discussed in footnote (f) below. NAVs have not been determined for CPA^®:17 – Global and CPA^®:18 – Global, therefore, their offering price have been presented in the table above. For CPA^®:17 – Global, the offering price shown is from its follow-on offering, which terminated in January 2013. The offering price shown for CPA^®:18 – Global is calculated by using a weighted-average of the Class A and Class C common shares outstanding at December 31, 2013 at their initial offering price of $10.00 and $9.35 per share, respectively.


(b)	The current annualized distribution rate is based on quarterly distribution rate for the fourth quarter of 2013 (rate is not guaranteed). For CWI, approximately 83% of its 2013 quarter distribution was paid in cash, with the remaining 17% paid in shares of its common stock.

(c)

We generally earn asset management revenue of 0.5% per annum of average invested assets. For CPA^®:17 – Global, we earn asset management revenue ranging from 0.5% per annum of average market value for long-term net leases and certain other types of real estate investments up to 1.75% per annum of the average equity value for certain types of securities. For CPA^®:18 – Global, we earn asset management revenue ranging from 0.5% per annum of average market value of certain investments up to 1.5% per annum of the average equity value of certain investments. For 2013, we elected to receive all base asset management revenue in shares of each of the Managed REITs common stock (except that, for CPA^®:16 – Global, on July 31, 2013, we elected to start receiving cash in lieu of shares at the request of the Special Committee of its Board of Directors in light of our then-pending Merger with CPA^®:16 – Global).

(d)

We generally receive structuring revenue of up to an average of 4.5% of the total cost of all investments made by each CPA^® REIT. For certain types of non-long term net lease investments acquired on behalf of CPA^®:17 – Global and CPA^®:18 – Global, structuring revenue may range from 0% to 1.75% of the equity invested plus the related structuring revenue. For CWI, we earn structuring revenue of 2.5% of the total investment cost of the properties acquired.


(e)	Represents the combined shares outstanding for the Class A and Class C shares of CPA^®:18–Global common stock.

(f)



		Investing for the long run^TM \| 20

Investment Activity – Owned Portfolio – Acquisitions and Dispositions

(in thousands, except square footage) (unaudited)

For the Year Ended December 31, 2013

Acquisitions – Owned Portfolio

Portfolio(s)

Tenant/Lease Guarantor

Property Location(s)

Purchase Price ^(a)

Closing Date

Property Type(s)

Gross Square Footage

WPC

Kraft Foods Group, Inc.

Northfield, IL

72,360

Jan-13

Office

679,109

WPC

Tommy Hilfiger Europe B.V.^(b)

Venlo, Netherlands

35,316

Apr-13

Warehouse/Distribution

473,611

WPC

Cargotec Corporation ^(b)

Tampere, Finland

52,084

Jun-13

Industrial, Office

183,568

WPC

Arbella Capital Corporation

Quincy, MA

25,500

Jun-13

Office

132,160

WPC

UK Government ^(b)

Salford, United Kingdom

63,251

Sep-13

Office

211,367

WPC

TW Telecom Inc. ^(d)

Lone Tree, CO

33,600

Nov-13

Office

161,218

WPC

Santander Global Facilities S.L. ^(b) ^(c)

Monchengladbach, Germany

65,003

Dec-13

Office

BTS

Total Owned Portfolio Acquisitions

347,114

1,841,033

Dispositions – Owned Portfolio

Portfolio(s)

Tenant/Lease Guarantor

Property Location(s)

Gross Sale Price

Date

Property Type(s)

Gross Square Footage

WPC

Childtime Childcare, Inc.^(e)

Naperville, IL

1,445

Jan-13

Education

7,893

WPC

Garden Ridge, L.P.^(e)

Oklahoma City, OK

9,790

Mar-13

Retail

141,585

WPC

US Airways Group, Inc.

Tempe, AZ

28,420

Jun-13

Office

167,890

WPC

Custom Food Products, LLC ^(e)

Owingsville, KY

5,500

Jun-13

Industrial

37,094

WPC

Anthony, Inc. and Anthony Holdings, Inc.

San Fernando, CA

3,122

Jun-13

Industrial

40,306

WPC

Broomfield Properties Corp.

Broomfield, CO

1,300

Jun-13

Office

41,281

WPC

A. Duie Pyle

Westfield, MA

3,350

Jul-13

Warehouse/Distribution

169,102

WPC

UTI Holdings, Inc.

Glendale Heights, IL

3,975

Jul-13

Education

101,194

WPC

Federal Express Corporation

College Station, TX

700

Jul-13

Warehouse/Distribution

12,080

WPC

Livho, Inc.

Livonia, MI

3,890

Oct-13

Hotel

158,000

WPC

Carey Storage (19 Facilities)

Various

114,060

Nov-13

Self-Storage

1,632,370

Total Owned Portfolio Dispositions

175,552

2,508,795

__________


(a)	Includes capitalized transaction costs, where applicable.


(b)	Amounts are based on the applicable exchange rate on the date of acquisition.


(c)	Acquisition includes a build-to-suit (“BTS”) transaction. Purchase price represents total commitment for BTS funding. Gross square footage amounts cannot be determined at this time.


(d)	We are also committed to fund a tenant improvement allowance of $5.2 million.


(e)	Properties were acquired in the CPA^®:15 Merger.



		Investing for the long run^TM \| 21

Investment Activity – Managed REITs – Acquisitions

(in thousands, except square footage) (unaudited)

For the Year Ended December 31, 2013

Acquisitions – Leased Properties

Portfolio(s)

Tenant/Lease Guarantor

Property Location(s)

Purchase

Price^(a)

Closing Date

Property Type(s)

Gross Square Footage

CPA^®:17 – Global

Penda Corporation

Portage, WI

10,871

Jan-13

Industrial

270,500

CPA^®:17 – Global

Live Nation Entertainment, Inc.

Dallas, TX

15,700

Feb-13

Retail

61,876

CPA^®:17 – Global

Harbor Freight Tools USA, Inc.^(b)

Dillon, SC

39,004

Mar-13

Warehouse/Distribution

BTS

CPA^®:17 – Global

GEMS Chicago, Inc.

Chicago, IL

18,188

Apr-13

Land

324,176

CPA^®:17 – Global

Multi-Tenant

Northbrook, IL

7,934

May-13

Retail

6,006

CPA^®:16 – Global

Advanced Circuits, Inc.

Aurora, CO

4,869

May-13

Industrial

50,664

CPA^®:17 – Global

FrieslandCampina Nederland B.V.^(c)

Wageningen, Netherlands

38,569

Jul-13

Industrial

185,957

CPA^®:17 – Global

H&M Hennes & Mauritz AB^(c)

Gadki, Poland

78,063

Jul-13

Warehouse/Distribution

897,951

CPA^®:18 – Global (50%); CPA^®:17 – Global (50%)

State Farm Mutual Automobile Company

Austin, TX

115,604

Aug-13

Office

239,706

CPA^®:17 – Global

RLJ-McLarty-Landers Automotive Holdings, LLC

Lewisville, TX

15,310

Aug-13

Automotive Dealership

74,640

CPA^®:17 – Global

Henniges Automotive North America, Inc.

Auburn Hills, MI

9,000

Oct-13

Office

55,490

CPA^®:17 – Global

Adler Modemärkte AG ^(c)

Haibach, Germany

26,593

Oct-13

Office

180,909

CPA^®:18 – Global (80%); CPA^®:17 – Global (20%)

Agrokor d.d. ^(c)

Various Locations in Croatia

89,094

Dec-13

Retail

564,577

CPA^®:17 – Global

KBR Inc.

Houston, TX

41,730

Dec-13

Office

390,982

CPA^®:17 – Global

Avnet Inc.

Tempe, AZ

16,996

Dec-13

Office

132,070

CPA^®:18 – Global

Crowne Group, LLC

Madison, IN; Logansport, IN; Marion, SC

22,898

Dec-13

Industrial

647,549

Total Acquisitions – Leased Properties

550,423

4,083,053

Acquisitions – Self-Storage

Portfolio(s)

Property Type

Property Location(s)

Purchase

Price^(a)

Closing Date

CPA^®:17 – Global

Self-Storage Facility

Cathedral City, CA

2,755

Mar-13

CPA^®:17 – Global

Self-Storage Facility

Hilo, HI

6,100

Jun-13

CPA^®:17 – Global

Self-Storage Facility (85% Equity investment)

New York, NY

81,237

Jun-13

CPA^®:17 – Global

Self-Storage Facility

Clearwater, FL

4,430

Jul-13

CPA^®:17 – Global

Self-Storage Facilities (2 Facilities)

Winder, GA

2,700

Jul-13

CPA^®:17 – Global

Self-Storage Facility

Orlando, FL

6,700

Aug-13

CPA^®:17 – Global

Self-Storage Facility

Palm Coast, FL

5,700

Sep-13

CPA^®:17 – Global

Self-Storage Facility (85% Equity investment)

Bronx, NY

6,724

Oct-13

CPA^®:17 – Global

Self-Storage Facility

Holiday, FL

3,500

Nov-13

Total Acquisitions – Self-Storage Properties

119,846



		Investing for the long run^TM \| 22

Investment Activity – Managed REITs – Acquisitions (Unaudited)

(Continued)

(in thousands, except square footage)



For the Year Ended December 31, 2013
Acquisitions - Other
Portfolio(s)	Security Type	Company	Purchase Price (a)	Closing Date
CPA^®:17 – Global	Non-Convertible Debenture	Suncity Constructwell Private Limited	1,614	Nov-13
Total Acquisition – Other			1,614



Acquisitions - Hospitality
Portfolio(s)	Property Type	Property Location(s)	Purchase Price^(a)		Closing Date
CWI	Hospitality	Memphis, TN; Atlanta, GA; Frisco, TX; Birmingham, AL; Baton Rouge, LA	94,600		Feb-13
CWI	Hospitality	Pittsburgh, PA	29,900		Mar-13
CWI	Hospitality	Nashville, TN	73,600		May-13
CWI	Hospitality	New York, NY	113,000		Jun-13
CWI	Hospitality ^(d)	Sonoma, CA	78,948		Jul-13
CWI	Hospitality	Raleigh, NC	82,872		Aug-13
CWI	Hospitality	Duck Key, FL	133,541		Oct-13
CWI	Hospitality	Chicago, IL	138,838		Dec-13
Total Acquisitions – Hospitality Properties			745,299

Total Acquisitions			$	1,417,182

__________


(a)	Includes capitalized transaction costs, where applicable. For equity investments, the purchase price represents the Managed REIT’s pro rata share of the jointly-owned investment estimated total asset value, excluding debt, plus capitalized transactions costs.


(b)	Acquisition includes a BTS transaction. Purchase price represents total commitment for BTS funding. Gross square footage amounts cannot be determined at this time.


(c)	Acquisition price reflects applicable foreign exchange rate.


(d)	Represents the joint venture’s purchase price to acquire the hotel less the noncontrolling interest contributed by the joint venture partner.



		Investing for the long run^TM \| 23

Investment Activity – Managed REITs – Dispositions

(in thousands, except square footage) (unaudited)

For the Year Ended December 31, 2013

Portfolio(s)

Tenant/Lease Guarantor

Property Location(s)

Gross Sale Price

Date

Property Type

Gross Square

Footage

CPA^®:16 – Global

Vacant (formerly Barjan LLC)

Rock Island, IL

7,410

Feb-13

Warehouse/Distribution

241,950

CPA^®:16 – Global

Childtime Childcare, Inc.

Chandler, AZ; Fleming Island, FL; Kennesaw, GA; Hauppauge and Patchogue, NY; Sugar Land, TX; Hampton, VA; Silverdale, WA

13,681

Mar-13; Jul-13; Aug-13; Sep-13, Oct-13; Nov-13

Education

71,372

CPA^®:16 – Global

Vacant (formerly Metagenics, Inc.)

San Clemente, CA

11,263

Mar-13

Industrial

88,070

CPA^®:16 – Global

Garden Ridge, L.P.

Tulsa, OK

9,810

Mar-13

Retail

141,659

CPA^®:16 – Global

RR Donnelley & Sons Company

Waterloo, WI

—

Apr-13

Industrial, Office, Warehouse/Distribution

466,192

CPA^®:16 – Global

Waddington North America, Inc.

Florence, KY

1,775

Jun-13

Industrial

166,849

CPA^®:16 – Global

BA Kitchen Components Limited ^(a)

Doncaster, United Kingdom

1,527

Jun-13

Industrial

225,998

CWI

Hotel Maya, a Doubletree Hotel and Residence Inn Long Beach (49% Equity investment)

Long Beach, CA

22,640

Jul-13

Hospitality

N/A

CPA^®:16 – Global

Fraikin SAS ^(a)

Créteil, Marseille, Vaulx en Velin, and Wasquehal, France

4,589

Jul-13

Industrial

43,550

CPA^®:16 – Global

Tower Automotive Products Co., Inc.

Upper Sandusky, OH

875

Aug-13

Industrial

80,212

CPA^®:16 – Global

Southwest Convenience Stores

Socorro, TX

447

Aug-13

Retail

4,114

CPA^®:16 – Global

Gerber Scientific, Inc.

South Windsor, CT

4,200

Sep-13

Industrial

60,000

CPA^®:16 – Global

Katun Corporation

Davenport, IA

6,550

Oct-13

Warehouse/Distribution

121,623

CPA^®:16 – Global

The Talaria Company (Hinckley) (70% CPA^®:16 – Global; 30% WPC)

Stuart, FL; Trenton and Southwest Harbor, ME; Portsmouth, RI

40,704

Oct-13

Industrial

426,137

CPA^®:16 – Global

Telcordia Technologies, Inc.

Piscataway, NJ

27,400

Dec-13

Office

379,037

Total Dispositions

152,871

2,516,763

____________


(a)	Disposition price reflects applicable foreign exchange rate.



		Investing for the long run^TM \| 24

Combined Company Information



		Investing for the long run^TM \| 25

Combined Company Portfolio Debt Overview (Pro Rata-Basis)

(in thousands, except percentages) (unaudited)



As of December 31, 2013
Portfolio Debt Maturity
Year of Maturity	Number of Properties ^(a)	Annualized Contractual Minimum Base Rent ^(a)		Balloon Payments		Other Principal Payments		Debt Maturity ^(b)
2014	24	$	48,632	$	276,952	$	9,190	$	286,142
2015	37	45,726		262,858		6,231		269,089
2016	107	42,222		253,291		19,462		272,753
2017	92	103,388		659,503		15,481		674,984
2018	36	55,222		288,452		52,491		340,943
2019	11	16,511		51,450		17,716		69,166
2020	22	38,985		204,635		45,821		250,456
2021	12	20,846		90,874		32,704		123,578
2022	30	42,265		203,413		60,619		264,032
2023	27	43,173		123,300		81,178		204,478
2024	24	21,097		7,936		79,155		87,092
Thereafter	24	27,804		44,454		91,173		135,627
	446	$	505,871	$	2,467,118	$	511,221	2,978,340
Unsecured Term Loan ^(c)								300,000
Prior Senior Credit Facility ^(c)								275,000
Line of credit ^(d)								155,000
								$	3,708,340



Mortgage Maturity Analysis ^(a)(in thousands)

__________


(a)	Represents the number of properties and annualized contractual minimum base rent associated with the debt that is maturing in each respective year.


(b)	Debt maturity data is presented on a pro rata basis. Pro rata amounts are non-GAAP measures. See the Terms and Definitions section that begins on page 44 for a description of our non-GAAP measures.

(c)

Amount includes recourse debt under our then-existing senior credit facility, including a revolving credit facility for up to $450.0 million and a $175.0 million term loan facility (collectively, the “Prior Senior Credit Facility”) and an unsecured term loan for $300 million (the “Unsecured Term Loan”), of which a total of $275.0 million and $300.0 million, respectively, were outstanding as of December 31, 2013. In January 2014, we amended our existing credit agreement to increase the maximum aggregate principal amount available to $1.25 billion, which include a $1.0 billion revolving credit facility and a $250.0 million term loan. The Prior Senior Credit Facility and Unsecured Term Loan were repaid in full at that time and terminated.


(d)	Represents CPA^®:16 – Global's line of credit as of December 31, 2013, which was repaid in full on January 31, 2014 and terminated in connection with the closing of the CPA^®:16 Merger on that date.



		Investing for the long run^TM \| 26

Combined Company Portfolio Debt Overview (Pro Rata-Basis)

(Continued)

(in thousands, except percentages) (unaudited)



As of December 31, 2013
Fixed- and Variable-Rate Pro Rata Debt

	Weighted Average Interest Rate		Total Outstanding Balance		Percent of Total
Fixed	5.6	%	$	2,405,020	64.9	%
Variable – Swapped	5.0	%	313,854		8.5	%
Variable – Capped	1.6	%	210,136		5.7	%
Variable – Floating	4.2	%	30,893		0.8	%
Variable – Future Rate Reset	6.2	%	18,437		0.5	%
	5.2	%	2,978,340		80.4	%
Recourse Debt ^(a)
Variable – Unsecured Term Loan	1.8	%	300,000		8.1	%
Variable – Senior Credit Facility	1.9	%	275,000		7.4	%
Variable – Line of credit	3.1	%	155,000		4.1	%
Total Pro Rata Debt Outstanding^(b)	4.6	%	$	3,708,340	100.0	%

__________


(a)	In January 2014, we amended our existing credit agreement to increase the maximum aggregate principal amount available to $1.25 billion, which include a $1.0 billion revolving credit facility and a $250.0 million term loan. The Prior Senior Credit Facility and Unsecured Term Loan were repaid in full at that time and terminated.


(b)	Pro rata debt is a non-GAAP measure. See the Terms and Definitions section that begins on page 44 for a description of our non-GAAP financial measures.



As of December 31, 2013
Reconciliation of GAAP Debt to Pro Rata Debt

	WPC			CPA^®:16 − Global			Combined Company
Non-recourse debt, as reported	$	1,492,410		$	1,518,325		$	3,010,735
Add share of equity investments	217,263			253,029			470,292
Less: noncontrolling interest's share of consolidated debt	(200,250		)	(302,437		)	(502,687		)
Non-recourse pro rata debt	1,509,423			1,468,917			2,978,340
Recourse debt, as reported	575,000			155,000			730,000
Total Pro Rata Debt	$	2,084,423		$	1,623,917		$	3,708,340



		Investing for the long run^TM \| 27

Combined Company Joint Venture Information (in thousands, except percentages) (unaudited)



As of December 31, 2013
Joint Venture Information
Joint Venture or JV	WPC % Interest	Remaining	Total JV						WPC Pro Rata Share of Total JV^(a)
(Principal Tenant)	in JV	Interest in JV	Assets		Liabilities		Equity		Assets		Liabilities		Equity
Wanbishi Archives Co. Ltd.	3.00%	CPA^®:17 – Global - 97.00%	$	39,925	$	27,217	$	12,708	$	1,198	$	817	$	381
C1000 Logistiek Vastgoed B.V.	15.00%	CPA^®:17 – Global - 85.00%	192,348		96,132		96,216		28,852		14,420		14,432
Actebis Peacock GmbH	30.00%	CPA^®:17 – Global - 70.00%	44,337		29,325		15,012		13,301		8,798		4,503
Waldaschaff Automotive Gmbh and Wagon Automotive Nagold GmbH	33.00%	CPA^®:17 – Global - 67.00%	44,924		21,079		23,845		14,825		6,956		7,869
Frontier Spinning Mills, Inc.	40.00%	CPA^®:17 – Global - 60.00%	38,223		22,438		15,785		15,289		8,975		6,314
The New York Times Company	45.00%	CPA^®:17 – Global - 55.00%	249,730		119,579		130,151		112,379		53,811		58,568
Total Equity Method Joint Ventures			609,487		315,770		293,717		185,844		93,777		92,067

Carey Storage ^(b)	36.60%	Third parties - 63.40%	6,133		3,196		2,937		2,245		1,170		1,075
Berry Plastics Corporation	50.00%	CPA^®:17 – Global - 50.00%	70,802		27,625		43,177		35,401		13,813		21,588
Tesco PLC	51.00%	CPA^®:17 – Global - 49.00%	82,676		48,056		34,620		42,165		24,509		17,656
Dick’s Sporting Goods, Inc.	55.00%	CPA^®:17 – Global - 45.00%	25,097		21,659		3,438		13,803		11,912		1,891
Hellweg Die Profi-Baumärkte GmbH & Co. KG (Hellweg 2)	63.50%	CPA^®:17 – Global - 36.50%	410,456		380,575		29,881		260,640		241,665		18,975
Eroski Sociedad Cooperativa	70.00%	CPA^®:17 – Global - 30.00%	32,435		261		32,174		22,705		183		22,522
Multi-tenant property in Illkirch-Graffens, France	75.00%	Third party - 25.00%	21,110		13,130		7,980		15,833		9,848		5,985
Gibson Guitar	82.50%	Third party - 17.50%	15,498		9,629		5,869		12,786		7,944		4,842
U-Haul Moving Partners, Inc. and Mercury Partners, L.P.	88.46%	CPA^®:17 – Global - 11.54%	252,051		16,221		235,830		222,964		14,349		208,615
Continental Airlines, Inc.	90.00%	Third party - 10.00%	5,227		4,248		979		4,704		3,823		881
Multi-tenant property in Tours, France ^(c)	95.00%	Third party - 5.00%	9,834		8,381		1,453		9,342		7,962		1,380
Total Consolidated Joint Ventures			931,319		532,981		398,338		642,588		337,178		305,410
Total Less Than Wholly-Owned Joint Ventures			$	1,540,806	$	848,751	$	692,055	$	828,432	$	430,955	$	397,477

__________


(a)	Pro rata amounts are non-GAAP measures. See the Terms and Definitions section that begins on page 44 for a description of our non-GAAP financial measures.


(b)	In November 2013, this venture sold 19 of its 20 self-storage properties to an unrelated third party.


(c)	This investment was sold in January 2014.



		Investing for the long run^TM \| 28

Combined Company Portfolio Information – Diversification of Top Ten Tenants by Rent (Pro Rata-Basis)

(in thousands, except percentages) (unaudited)



As of December 31, 2013
Tenant / Lease Guarantor	Annualized Contractual Minimum Base Rent		Percent
Hellweg Die Profi-Baumärkte GmbH & Co. KG ^(a)	$	42,411	6.4	%
Carrefour France SAS ^(a)	33,433		5.1	%
U-Haul Moving Partners Inc. and Mercury Partners, LP	28,738		4.4	%
OBI Group ^(a)	18,596		2.8	%
Marcourt Investments Inc. (Marriott Corporation)	16,100		2.4	%
UTI Holdings, Inc.	14,514		2.2	%
True Value Company	14,486		2.2	%
Advanced Micro Devices, Inc.	11,944		1.8	%
The New York Times Company	11,552		1.8	%
Dick's Sporting Goods, Inc.	11,538		1.8	%
Total^(b)	$	203,312	30.9	%

__________


(a)	Rent amounts are subject to fluctuations in foreign currency exchange rates.


(b)	Pro rata amounts are non-GAAP measures. See the Terms and Definitions section that begins on page 44 for a description of our non-GAAP measures.



		Investing for the long run^TM \| 29

Combined Company Portfolio Information – Diversification by Property Type

(Pro Rata-Basis)

(in thousands, except percentages) (unaudited)



As of December 31, 2013
Property Type	Square Footage	Percent
Industrial	31,920	37.8	%
Warehouse/Distribution	24,694	29.3	%
Office	10,928	13.0	%
Retail	7,739	9.2	%
Self Storage	5,143	6.1	%
Other Properties^(a)	3,880	4.6	%
Total ^{(b) (c)}	84,304	100.0	%



Property Type	Annualized Contractual Minimum Base Rent		Percent
Office	$	176,244	26.8	%
Industrial	170,440		25.9	%
Warehouse/Distribution	126,106		19.1	%
Retail	90,678		13.8	%
Self Storage	28,738		4.4	%
Other Properties ^(a)	66,373		10.0	%
Total^{(b) (c)}	$	658,579	100.0	%



Portfolio Diversification by Property Type (b) (c)	Portfolio Diversification by Property Type (b) (c)
(based on square footage)	(based on annualized contractual minimum base rent)

__________


(a)	Other properties include hospitality, education, sports, theater, residential, and unoccupied land.


(b)	Excludes all operating properties.


(c)	Pro rata amounts are non-GAAP measures. See the Terms and Definitions section that begins on page 44 for a description of our non-GAAP measures.



		Investing for the long run^TM \| 30

Combined Company Portfolio Information – Diversification by Tenant Industry (Pro Rata-Basis)

(in thousands, except percentages) (unaudited)



As of December 31, 2013
Industry Type^(a)	Square Footage	Percent		Annualized Contractual Minimum Base Rent		Percent
Retail Trade	17,165	20.4	%	$	132,701	20.1	%
Electronics	4,967	5.9	%	66,140		10.0	%
Chemicals, Plastics, Rubber, and Glass	6,428	7.6	%	36,827		5.6	%
Automobile	6,268	7.4	%	34,638		5.3	%
Business and Commercial Services	2,542	3.0	%	34,380		5.2	%
Healthcare, Education and Childcare	2,757	3.3	%	34,055		5.2	%
Construction and Building	8,045	9.5	%	29,953		4.5	%
Beverages, Food, and Tobacco	4,328	5.1	%	27,642		4.2	%
Media: Printing and Publishing	2,759	3.3	%	25,001		3.8	%
Hotels and Gaming	1,089	1.3	%	22,976		3.5	%
Telecommunications	1,495	1.8	%	21,123		3.2	%
Leisure, Amusement, Entertainment	1,114	1.3	%	20,963		3.2	%
Machinery	2,955	3.5	%	20,937		3.2	%
Transportation - Cargo	2,197	2.6	%	20,099		3.1	%
Buildings and Real Estate	3,343	4.0	%	18,679		2.8	%
Federal, State and Local Government	628	0.7	%	16,333		2.5	%
Consumer Non-Durable Goods	2,881	3.4	%	15,762		2.4	%
Insurance	1,060	1.3	%	13,029		2.0	%
Grocery	1,198	1.4	%	12,387		1.9	%
Transportation - Personal	1,825	2.2	%	10,266		1.6	%
Aerospace and Defense	1,101	1.3	%	8,583		1.3	%
Textiles, Leather, and Apparel	2,006	2.4	%	8,196		1.2	%
Mining, Metals, and Primary Metal Industries	1,455	1.7	%	7,886		1.2	%
Other^(b)	3,298	3.9	%	20,023		3.0	%
Vacant	1,400	1.7	%	—		0.0	%
Total^{(c) (d)}	84,304	100.0	%	$	658,579	100.0	%



		Investing for the long run^TM \| 31

Combined Company Portfolio Information – Diversification by Tenant Industry (Pro Rata-Basis)

(Continued)

__________


(a)	Based on the Moody’s Classification System and information provided by the tenant.


(b)	Includes rent from tenants in the following industries: consumer and durable goods; banking; forest products and paper; consumer services; utilities; and multi-tenant properties.


(c)	Excludes all operating properties.


(d)	Pro rata amounts are non-GAAP measures. See the Terms and Definitions section that begins on page 44 for a description of our non-GAAP measures.


(e)	Pro rata rents and applicable exchange rates are as of December 31, 2013.



		Investing for the long run^TM \| 32

Combined Company Portfolio Information – Diversification by Geography (Pro Rata-Basis)

(in thousands, except percentages) (unaudited)



As of December 31, 2013
Region	Square Footage	Percent		Region	Annualized Contractual Minimum Base Rent		Percent
U.S.				U.S.
South	17,443	20.6	%	South	$	124,571	18.9	%
East	17,138	20.3	%	East	121,097		18.4	%
Midwest	12,945	15.4	%	West	119,225		18.1	%
West	12,088	14.3	%	Midwest	82,844		12.6	%
U.S. Total	59,614	70.6	%	U.S. Total	447,737		68.0	%

International				International
France	8,780	10.4	%	Germany	69,321		10.5	%
Germany	7,079	8.4	%	France	54,613		8.3	%
Finland	2,403	2.9	%	Finland	33,692		5.1	%
Poland	1,827	2.2	%	Poland	18,596		2.8	%
Other^(a)	4,601	5.5	%	Other^(a)	34,620		5.3	%
International Total	24,690	29.4	%	International Total	210,842		32.0	%
Total^{(b) (c)}	84,304	100.0	%	Total^{(b) (c)}	$	658,579	100.0	%



Portfolio Diversification by Geography ^{(b) (c)}	Portfolio Diversification by Geography ^{(b) (c)}
(based on square footage)	(based on annualized contractual minimum base rent)

_______


(a)	Includes assets in the United Kingdom, the Netherlands, Hungary, Spain, Belgium, Sweden, Canada, Mexico, Thailand, Malaysia, and Japan.


(b)	Excludes all operating properties.


(c)	Pro rata amounts are non-GAAP measures. See the Terms and Definitions section that begins on page 44 for a description of our non-GAAP measures.



		Investing for the long run^TM \| 33

Combined Company Portfolio Information – Lease Maturities (Pro Rata-Basis)

(in thousands, except percentages and number of leases) (unaudited)



As of December 31, 2013
Year of Lease Expiration^(a)	Number of Leases Expiring	Square Feet	As % of Total Portfolio		Annualized Contractual Minimum Base Rent		As % of Total Portfolio
2014	18	1,327	1.6	%	$	12,745	1.9	%
2015	35	8,489	10.1	%	55,904		8.5	%
2016	26	3,186	3.8	%	28,329		4.3	%
2017	21	3,209	3.8	%	19,738		3.0	%
2018	19	2,752	3.3	%	31,183		4.7	%
2019	21	4,110	4.9	%	45,189		6.9	%
2020	23	4,227	5.0	%	35,470		5.4	%
2021	80	7,606	9.0	%	48,486		7.4	%
2022	37	8,694	10.3	%	61,856		9.4	%
2023	17	5,451	6.4	%	47,730		7.2	%
2024	38	12,497	14.8	%	86,493		13.1	%
2025	14	2,016	2.4	%	16,329		2.5	%
2026	22	2,707	3.2	%	19,862		3.0	%
2027	17	5,592	6.6	%	37,954		5.8	%
Thereafter	32	11,041	13.1	%	111,311		16.9	%
Vacant	—	1,400	1.7	%	—		0.0	%
Total^{(c) (d)}	420	84,304	100.0	%	$	658,579	100.0	%

__________


(a)	Assumes tenant does not exercise renewal option.


(b)	Month-to-month properties are counted in 2014 revenue stream.


(c)	Excludes all operating properties.


(d)	Pro rata amounts are non-GAAP measures. See the Terms and Definitions section that begins on page 44 for a description of our non-GAAP measures.



		Investing for the long run^TM \| 34

Combined Company Tenants by Annualized Contractual Minimum Base Rent (Pro Rata-Basis)

(in thousands, except number of locations and percentages) (unaudited)



As of December 31, 2013
Tenant	Location(s)	Number of Locations	Square Feet	Annualized Rent		Annualized Rent as a % of Total		Increase Factor	Property Type	Industry
Hellweg Die Profi-Baumärkte GmbH & Co. KG	Germany	53	3,507	$	42,411	6.4	%	CPIU	Retail	Retail Stores
Carrefour France, SAS	France	15	6,265	33,433		5.1	%	CPIU; FIXED	Warehouse/Distribution	Retail Stores
U-Haul Moving Partners, Inc. and Mercury Partners, LP	AL; AZ; CO; FL; GA; IL; IN; KS; LA; MA; MD; MN; MO; MS; NC; NJ; NM; NV; NY; OH; OK; TN; TX; VA	78	5,143	28,738		4.4	%	CPIU	Self-Storage	Buildings and Real Estate
Marcourt Investments Inc. (Marriott Corporation)	Poland	18	1,827	18,596		2.8	%	CPIU	Office; Retail	Retail Stores
Marcourt Investments Inc.	CA; FL; IL; IN; KY; MD; NJ; NM; WA	12	1,036	16,100		2.4	%	OTHER	Other Properties	Hotels and Gaming
UTI Holdings, Inc.	Avondale, AZ; Rancho Cucamonga, CA; Sacramento, CA; Glendale Heights, IL; Mooresville, NC; Exton, PA	6	1096	14,514		2.2	%	CPIU	Other Properties	Healthcare, Education and Childcare
True Value Company	Corsicana, TX; Fogelsville, PA; Jonesboro, GA; Kansas City, MO; Kingman, AZ; Springfield, OR; Woodland, CA	7	3628	14,486		2.2	%	FIXED	Warehouse/Distribution	Construction and Building
Advanced Micro Devices, Inc.	Sunnyvale, CA	1	362	11,944		1.8	%	CPI	Office	Electronics
The New York Times Company	New York, NY	1	321	11,552		1.8	%	FIXED	Office	Media: Printing and Publishing
Dick's Sporting Goods, Inc.	Buffalo, NY; Fairfax, VA; Freehold, NJ; Greenwood, IN (2); Kennesaw, GA; Leawood, KS; Lombard, IL; Plainfield, IN; York, PA	10	1169	11,538		1.8	%	CPI; FIXED	Retail	Retail Stores
Pohjola Non-Life Insurance Company LTD	Finland	1	851	9,742		1.5	%	CPIU	Office	Insurance
Prefecture de Police	France	1	241	9,464		1.4	%	CPIU	Office	Federal, State and Local Government
TietoEnator Plc	Finland	2	466	9,216		1.4	%	CPIU	Office	Electronics
Berry Plastics Corporation	Alsip, IL; Baltimore, MD; Evansville, IN; Lawrence, KS; Solvay, NY; Tolleson, AZ	7	1656	7,606		1.2	%	CPIU	Industrial	Chemicals, Plastics, Rubber, and Glass
Federal Express Corporation	Collierville, TN; Corpus Christi, TX	2	421	7,593		1.2	%	CPI; FIXED	Office; Warehouse/Distribution	Transportation - Cargo
Nordic Atlanta Cold Storage, LLC	Atlanta, GA; Doraville, GA; Rockmart, GA	3	1307	7,539		1.1	%	CPI	Warehouse/Distribution	Business and Commercial Services
Schuler AG	Germany	1	747	7,516		1.1	%	CPI	Industrial	Machinery
Tower International	Auburn, IN; Bluffton, OH; Clinton Township, MI; Milan, TN	4	1229	6,884		1.0	%	CPIU	Industrial	Automobile
SOHO House Beach House, LLC	Miami Beach, FL	1	53	6,876		1.1	%	FIXED	Other Properties	Hotels and Gaming
24 Hour Fitness USA, Inc.	Austin, TX; Bedford, TX; Englewood, CO; Houston, TX; Memphis, TN; St. Charles, MO; Salt Lake City, UT	7	303	6,621		1.0	%	CPI; FIXED	Other Properties	Leisure, Amusement, Entertainment



		Investing for the long run^TM \| 35

Combined Company Tenants by Annualized Contractual Minimum Base Rent (Pro Rata-Basis)

(Continued)

(in thousands, except number of locations and percentages) (unaudited)



As of December 31, 2013
Tenant	Location(s)	Number of Locations	Square Feet	Annualized Rent	Annualized Rent as a % of Total		Increase Factor	Property Type	Industry
Ericsson, Inc.	Piscataway, NJ	1	507	6,594	1.0	%	CPI	Office	Telecommunications
Foster Wheeler Realty Services	Clinton, NJ	1	292	6,510	1.0	%	CPI	Office	Business and Commercial Services
Fraikin SAS	France	59	828	6,110	0.9	%	CPIU	Industrial	Transportation - Cargo
Fiserv, Inc.	Norcross, GA	1	221	5,472	0.8	%	CPI; FIXED	Land; Office	Business and Commercial Services
Life Time Fitness, Inc.	Canton, MI; Rochester Hills, MI	2	279	5,139	0.8	%	FIXED	Other Properties	Leisure, Amusement, Entertainment
Rexam Healthcare Packaging Inc.	Buffalo Grove, IL; Excelsior Springs, MO; North Versailles, PA; St. Petersburg, FL; West Lafayette, IN	6	881	5,106	0.8	%	CPIU	Industrial	Chemicals, Plastics, Rubber, and Glass
Kraft Foods Group, Inc.	Northfield, IL	1	679	5,000	0.8	%	NONE	Office	Beverages, Food, and Tobacco
Wallac Oy	Finland	2	309	4,903	0.7	%	CPIU	Industrial; Office	Electronics
IDS Group, Ltd.	Thailand; Malaysia	3	1165	4,778	0.7	%	CPI	Industrial; Warehouse/Distribution	Consumer Non-durable Goods
Atrium Windows and Doors, Inc.	Dallas, TX; Murrysville, PA; Welcome, NC; Wylie, TX	4	1366	4,665	0.7	%	CPI; NONE	Industrial; Land	Construction and Building
Katun Corporation	Bloomington, MN; Gorinchem, NT	2	355	4,359	0.7	%	CPIU	Office; Warehouse/Distribution	Electronics
Metokote Corporation	Peru, IL; Huber Heights, OH; Lima, OH; Sheffield, OH; Lebanon, TN; Cambridge, CN; Ramos Arizpe, MX	7	868	4,651	0.7	%	CPI	Industrial	Automobile
Corinthian Colleges Inc.	Blairsville, PA; Laramie, WY	2	399	4,556	0.7	%	CPI	Residential	Healthcare, Education and Childcare
Sec of State Communities and Local Gov	United Kingdom	1	211	4,502	0.7	%	OTHER	Office	Federal, State and Local Government
Dr. Pepper Snapple Group, Inc.	Houston, TX; Irving, TX	2	722	4,464	0.7	%	CPIU	Industrial	Beverages, Food, and Tobacco
Ply Gem Industries, Inc.	Fair Bluff, NC; Kearney, MO; Martinsburg, WV; MiddlesexTownship, PA; Rocky Mount, VA; Walbridge, OH; York, NE; Calgary, Alberta, CN	8	1857	4,407	0.7	%	CPIU	Industrial	Construction and Building
CSM Bakery Products NA, Inc.	Bonner Springs, KS; Colton, CA; Dallas, TX; Eagan, MN	4	658	4,367	0.7	%	CPI	Industrial	Beverages, Food, and Tobacco
Omnicom Group, Inc.	Playa Vista, CA	1	120	4,346	0.7	%	CPI	Office	Business and Commercial Services
Oriental Trading Company, Inc.	La Vista, NE	1	736	4,305	0.7	%	CPIU	Warehouse/Distribution	Consumer and Durable Goods
Caremark PCS Health LP	Scottsdale, AZ	1	355	4,300	0.7	%	NONE	Office	Electronics
HP Enterprise Services, LLC	Louisville, CO	1	404	4,185	0.6	%	CPI	Industrial	Telecommunications
Performance Fibers GmbH	Germany	1	859	4,184	0.6	%	CPI	Industrial; Office; Warehouse/Distribution	Chemicals, Plastics, Rubber, and Glass



		Investing for the long run^TM \| 36

Combined Company Tenants by Annualized Contractual Minimum Base Rent (Pro Rata-Basis)

(Continued)

(in thousands, except number of locations and percentages) (unaudited)



As of December 31, 2013
Tenant	Location(s)	Number of Locations	Square Feet	Annualized Rent		Annualized Rent as a % of Total		Increase Factor	Property Type	Industry
Huntsman International LLC	The Woodlands, TX	1	179	4,153		0.6	%	FIXED	Office	Chemicals, Plastics, Rubber, and Glass
Hologic, Inc.	Bedford, MA; Danbury, CT	2	269	4,068		0.6	%	CPI	Industrial	Electronics
Cargotec Finland OY	Finland	1	184	4,055		0.6	%	CPIU	Industrial; Office	Machinery
JPMorgan Chase Bank, National Assoc.	Fort Worth, TX	1	384	4,000		0.6	%	CPI	Office	Banking
Amylin Pharmaceuticals, Inc.	San Diego, CA	2	144	3,950		0.6	%	FIXED	Office	Business and Commercial Services
Tesco Global Aruhazak Zrt.	Hungary	2	509	3,875		0.6	%	CPI	Warehouse/Distribution	Grocery
Kings Super Markets, Inc.	Cresskill, NJ; Livingston, NJ; Maplewood, NJ; Montclair, NJ; Morristown, NJ; Summit, NJ	6	137	3,861		0.6	%	CPI	Retail	Grocery
Bob's Discount Furniture, LLC	Norwich, CT	2	795	3,840		0.6	%	CPI	Warehouse/Distribution	Retail Stores
Konica Minolta Business Solutions U.S.A., Inc.	St. Petersburg, FL	2	338	3,815		0.6	%	CPIU	Office	Electronics
Del Monte Corporation	Mendota, IL; Plover, WI; Toppenish, WA; Yakima, WA	4	736	3,526		0.5	%	CPIU	Warehouse/Distribution	Beverages, Food, and Tobacco
Finisar Corporation	Allen, TX; Sunnyvale, CA	2	252	3,525		0.5	%	FIXED	Industrial; Office	Electronics
PetSmart, Inc.	Ennis, TX; Phoenix, AZ	2	850	3,458		0.5	%	FIXED	Warehouse/Distribution	Retail Stores
Carmike Cinemas, Inc.	Hickory Creek, TX; Pensacola, FL; Port St. Lucie, FL	3	182	3,347		0.5	%	CPI	Industrial	Aerospace and Defense
TRW Vehicle Safety Systems Inc.	Washington, MI	1	280	3,336		0.5	%	FIXED	Office	Automobile
Orbital Sciences Corporation	Chandler, AZ	1	355	3,307		0.5	%	CPI	Industrial	Aerospace and Defense
Others		331	31,611	213,191		32.3	%
Vacant		4	1,400	—		0.0	%
Total^{(b) (c)}		708	84,304	$	658,579	100.0	%

__________


(a)	Number of locations and square footage includes properties that are partially vacant.


(b)	Excludes all operating properties.


(c)	Pro rata amounts are non-GAAP measures. See the Terms and Definitions section that begins on page 44 for a description of our non-GAAP measures.



		Investing for the long run^TM \| 37

Unencumbered Combined Company Portfolio Information



		Investing for the long run^TM \| 38

Unencumbered Combined Company Portfolio Information – Diversification by Property Type (Pro Rata-Basis)

(in thousands, except percentages) (unaudited)



As of December 31, 2013
Property Type	Square Footage	Percent
Industrial	10,375	44.5	%
Self Storage	5,143	22.1	%
Warehouse/Distribution	4,107	17.7	%
Office	2,384	10.2	%
Retail	586	2.5	%
Other Properties ^(a)	706	3.0	%
Total ^{(b) (c)}	23,301	100.0	%



Property Type	Annualized Contractual Minimum Base Rent		Percent
Industrial	$	51,785	33.9	%
Office	31,831		20.8	%
Self Storage	28,738		18.8	%
Warehouse/Distribution	19,348		12.7	%
Retail	3,273		2.2	%
Other Properties ^(a)	17,733		11.6	%
Total^{(b) (c)}	$	152,708	100.0	%

______



Portfolio Diversification by Property Type ^{(b) (c)}	Portfolio Diversification by Property Type ^{(b) (c)}
(based on square footage)	(based on annualized contractual minimum base rent)

___


(a)	Other properties include hospitality, education, sports, theater, and unoccupied land.


(b)	Excludes all operating properties.


(c)	Pro rata amounts are non-GAAP measures. See the Terms and Definitions section that begins on page 44 for a description of our non-GAAP measures.



		Investing for the long run^TM \| 39

Unencumbered Combined Company Portfolio Information – Diversification by Tenant Industry (Pro Rata-Basis)

(in thousands, except percentages) (unaudited)



As of December 31, 2013
Industry Type^(a)	Square Footage	Percent		Annualized Contractual Minimum Base Rent		Percent
Buildings and Real Estate	3,343	14.3	%	$	18,679	12.2	%
Machinery	1,895	8.1	%	15,731		10.3	%
Automobile	2,347	10.1	%	11,901		7.8	%
Construction and Building	2,655	11.4	%	11,018		7.2	%
Transportation – Personal	1,825	7.8	%	10,266		6.7	%
Electronics	1,118	4.8	%	9,926		6.5	%
Chemicals, Plastics, Rubber, and Glass	1,437	6.2	%	8,593		5.7	%
Healthcare, Education, and Childcare	852	3.7	%	7,984		5.2	%
Telecommunications	632	2.7	%	7,620		5.0	%
Leisure, Amusement, Entertainment	375	1.6	%	7,050		4.6	%
Hotels and Gaming	53	0.2	%	6,876		4.5	%
Federal, State, and Local Government	254	1.1	%	4,864		3.2	%
Forest Products and Paper	1,320	5.7	%	4,324		2.8	%
Textiles, Leather, and Apparel	707	3.0	%	4,072		2.7	%
Beverages, Food, and Tobacco	784	3.4	%	3,917		2.6	%
Retail Trade	644	2.8	%	3,639		2.4	%
Media: Printing and Publishing	511	2.2	%	2,944		1.9	%
Business and Commercial Services	207	0.9	%	2,336		1.5	%
Aerospace and Defense	448	1.9	%	2,327		1.5	%
Grocery	246	1.1	%	2,203		1.5	%
Transportation – Cargo	426	1.8	%	1,928		1.3	%
Insurance	132	0.6	%	1,883		1.2	%
Other^(b)	523	2.2	%	2,627		1.7	%
Vacant	567	2.4	%	—		0.0	%
Total^{(c) (d)}	23,301	100.0	%	$	152,708	100.0	%



		Investing for the long run^TM \| 40

Unencumbered Combined Company Portfolio Information – Diversification by Tenant Industry (Pro Rata-Basis)

(Continued)

__________


(a)	Based on the Moody’s Classification System and information provided by the tenant.


(b)	Includes rent from tenants in the following industries: mining, metals, and primary metal industries; banking; consumer services; and multi-tenant properties.


(c)	Excludes all operating properties.


(d)	Pro rata amounts are non-GAAP measures. See the Terms and Definitions section that begins on page 44 for a description of our non-GAAP measures.


(e)	Pro rata rents and applicable exchange rates are as of December 31, 2013.



		Investing for the long run^TM \| 41

Unencumbered Combined Company Portfolio Information – Diversification by Geography (Pro Rata-Basis)

(in thousands, except percentages) (unaudited)



As of December 31, 2013
Region	Square Footage	Percent		Region	Annualized Contractual Minimum Base Rent		Percent
U.S.				U.S.
South	7,751	33.2	%	South	$	44,124	28.9	%
East	5,238	22.5	%	East	34,736		22.7	%
Midwest	3,815	16.4	%	Midwest	23,977		15.7	%
West	3,582	15.4	%	West	19,725		12.9	%
U.S. Total	20,386	87.5	%	U.S. Total	122,562		80.2	%

International				International
Germany	1,580	6.8	%	Germany	14,308		9.4	%
Netherlands	474	2.0	%	United Kingdom	4,502		2.9	%
United Kingdom	211	0.9	%	Finland	4,055		2.7	%
Finland	184	0.8	%	Netherlands	3,155		2.1	%
Other^(a)	466	2.0	%	Other^(a)	4,126		2.7	%
International Total	2,915	12.5	%	International Total	30,146		19.8	%
Total^{(b) (c)}	23,301	100.0	%	Total^{(b) (c)}	$	152,708	100.0	%



Portfolio Diversification by Geography ^{(b) (c)}	Portfolio Diversification by Geography ^{(b) (c)}
(based on square footage)	(based on annualized contractual minimum base rent)


(a)	Includes assets in France, Spain, and Mexico.


(b)	Excludes all operating properties.


(c)	Pro rata amounts are non-GAAP measures. See the Terms and Definitions section that begins on page 44 for a description of our non-GAAP measures.



		Investing for the long run^TM \| 42

Unencumbered Combined Company Portfolio Information – Lease Maturities (Pro Rata-Basis)

(in thousands, except percentages and number of leases) (unaudited)



As of December 31, 2013
Year of Lease Expiration^(a)	Square Feet	As % of Total Portfolio		Annualized Contractual Minimum Base Rent		As % of Total Portfolio
2014	225	1.0	%	$	1,812	1.2	%
2015	580	2.5	%	2,922		1.9	%
2016	1,339	5.7	%	10,403		6.8	%
2017	1,083	4.6	%	5,810		3.8	%
2018	2,116	9.1	%	13,151		8.6	%
2019	611	2.6	%	2,964		1.9	%
2020	1,784	7.7	%	7,855		5.2	%
2021	2,022	8.7	%	11,341		7.4	%
2022	2,206	9.5	%	11,598		7.6	%
2023	1,151	4.9	%	9,275		6.1	%
2024	5,942	25.5	%	31,128		20.4	%
2025	165	0.7	%	1,248		0.8	%
2026	317	1.4	%	2,046		1.3	%
2027	1,393	6.0	%	13,729		9.0	%
Thereafter	1,800	7.7	%	27,426		18.0	%
Vacant	567	2.4	%	—		0.0	%
Total^{(c) (d)}	23,301	100.0	%	$	152,708	100.0	%

__________


(a)	Assumes tenant does not exercise renewal option.


(b)	Month-to-month properties are counted in 2014 revenue stream.


(c)	Excludes all operating properties.


(d)	Pro rata amounts are non-GAAP measures. See the Terms and Definitions section that begins on page 44 for a description of our non-GAAP measures.



		Investing for the long run^TM \| 43

Terms and Definitions

Non-GAAP Financial Disclosures

AFFO

Funds from Operations (“FFO”) is a non-GAAP measure defined by the National Association of Real Estate Investment Trusts (“NAREIT”). NAREIT defines FFO as net income or loss (as computed in accordance with GAAP) excluding: depreciation and amortization expense from real estate assets, impairment charges on real estate, gains or losses from sales of depreciated real estate assets and extraordinary items; however, FFO related to assets held for sale, sold or otherwise transferred and included in the results of discontinued operations are included. These adjustments also incorporate the pro rata share of unconsolidated subsidiaries. FFO is used by management, investors and analysts to facilitate meaningful comparisons of operating performance between periods and among our peers. Although NAREIT has published this definition of FFO, companies often modify this definition as they seek to provide financial measures that meaningfully reflect their distinctive operations.

We modify the NAREIT computation of FFO to include other adjustments to GAAP net income to adjust for certain non-cash charges such as amortization of intangibles, deferred income tax benefits and expenses, straight-line rents, stock compensation, gains or losses from extinguishment of debt and deconsolidation of subsidiaries and unrealized foreign currency exchange gains and losses. 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 have no impact on cash flows. Additionally, we exclude acquisition expenses and non-core expenses, such as merger and restructuring expenses. Merger expenses are related to the CPA^®:15 Merger and CPA^®:16 Merger and restructuring expenses are related to the restructuring of Hellweg 2. We also exclude realized gain/losses on foreign exchange and derivatives which are not considered fundamental attributes of our business plan and do not affect our overall long-term operating performance. We refer to our modified definition of FFO as AFFO. We exclude these items from GAAP net income as they are not the primary drivers in our decision making process and excluding those items provides investors a view of our portfolio performance over time and make it more comparable to other REITs that are currently not engaged in acquisitions, mergers and restructurings, which are not part of our normal business operations. We use AFFO as one measure of our operating performance when we formulate corporate goals, evaluate the effectiveness of our strategies, and determine executive compensation.

We believe that AFFO is a useful supplemental measure for investors to consider because it will help them to better assess the sustainability of our operating performance without the potentially distorting impact of these short-term fluctuations. However, there are limits on the usefulness of AFFO to investors. For example, impairment charges and unrealized foreign currency losses that we exclude may become actual realized losses upon the ultimate disposition of the properties in the form of lower cash proceeds or other considerations. We use our FFO and AFFO measures as supplemental financial measures of operating performance. We do not use our FFO and AFFO measures as, nor should they be considered to be, alternatives to net earnings computed under GAAP, as alternatives to cash from operating activities computed under GAAP or as indicators of our ability to fund our cash needs.

Adjusted EBITDA

We believe that earnings before interest, taxes, depreciation and amortization (“EBITDA”) is a useful supplemental measure to investors and analysts for assessing the performance of our business segments, although it does not represent net income that is computed in accordance with GAAP, because it removes the impact of our capital structure and asset base from our operating results and because it is helpful when comparing our operating performance to that of companies in our industry without regard to such items, which can vary substantially from company to company. Adjusted EBITDA as disclosed represents EBITDA, modified to include other adjustments to GAAP net income for certain non-cash charges such as impairments and stock compensation. Additionally, we exclude merger expenses related to the CPA^®:15 Merger and CPA^®:16 Merger which are considered non-recurring and gain/losses in real estate, foreign exchange and derivatives which are not considered fundamental attributes of our business plans and do not affect our overall long-term operating performance. We exclude these items from Adjusted EBITDA 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 have no impact on cash flows. We believe that Adjusted EBITDA is a useful supplemental measure to investors and analysts for assessing the performance of our business segments, although it does not represent net income that is computed in accordance with GAAP. Accordingly, Adjusted EBITDA should not be considered as an alternative to net income or as an indicator of our financial performance. EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Therefore, we use EBITDA and Adjusted EBITDA as two of the measures of our operating performance when we formulate corporate goals, evaluate the effectiveness of our strategies, and determine executive compensation. Adjusted EBITDA may not be comparable to similarly titled measures of other companies.



		Investing for the long run^TM \| 44

Terms and Definitions

(Continued)

Adjusted Revenue

Adjusted revenue is a non-GAAP financial measure that represents revenues on a GAAP basis adjusted for our pro rata share of revenues from equity investments as well as the pro rata share of revenues due to noncontrolling interests. We believe that adjusted revenue is useful to investors and analysts as a supplemental measure of revenues from our core operations, and we use it to evaluate the stability of our underlying revenue streams. Adjusted revenue should not be considered as an alternative to revenues computed on a GAAP basis as a measure of our profitability. Adjusted revenue may not be comparable to similarly titled measures of other companies.

Adjusted G&A

Total Adjusted G&A is a non-GAAP financial measure that represents WPC’s general and administrative expense on a GAAP basis adjusted for both non-recurring items including merger costs and recurring items including Dealer manager fee-related expense and non-cash stock compensation expense. We believe that Adjusted G&A is useful to investors and analysts as a supplemental measure of expenses related to total adjusted real estate revenue, and we use it to evaluate the profitability of our overall operations. Total Adjusted G&A should not be considered as an alternative to general and administrative expense computed on a GAAP basis as a measure of our profitability. Adjusted G&A may not be comparable to similarly titled measures of other companies.

NOI

NOI represents income from our net lease portfolio after operating expenses (excluding depreciation and amortization) are deducted from revenue. Further deductions for straight line and other non-cash rents are made to calculate NOI. We believe that presenting this measure provides supplemental information on the nature and performance of our investments that is not easily discernible in the equivalent GAAP measure.

Pro Rata Amounts

This supplemental package contains certain measures prepared under the pro rata consolidation method, which is not in accordance with GAAP. We refer to these non-GAAP measures as pro rata measures. We believe that these pro rata measures, including primarily "pro rata debt" and "pro rata NOI," are useful to investors as they provide supplemental information on the nature and performance of our investments that is not easily discernible in the equivalent GAAP measures. Consistent with industry practice and as a means of procuring opportunities and sharing risk, we have a number of investments, usually with our affiliates, in which our economic ownership is less than 100%. Under the full consolidation method required under GAAP, we report 100% of the assets, liabilities, revenues and expenses of those investments that are deemed to be under our control or for which we are deemed to be the primary beneficiary, even if our ownership is less than 100%. Also, under GAAP, for all other jointly-owned investments, we report our net investment and our net income or loss from that investment. Under the pro rata consolidation method, we generally present our proportionate share, based on our economic ownership of these jointly-owned investments, of the assets, liabilities, revenues and expenses of those investments, as we use this information to evaluate our financial performance without including any ownership of the other investors. Our non-GAAP measures are not intended to be performance measures that should be regarded as alternatives to or more meaningful than, our GAAP measures.

Total Adjusted Real Estate Revenue

Total adjusted real estate revenue represents WPC and the Managed REITs. We believe that presenting total adjusted real estate revenue is useful to investors and analysts as a supplemental measure of our Real Estate segment in relation to the aggregate amount of revenues that we manage. We use this non-GAAP measure because it allows for the evaluation of revenue stability of our owned and managed investment portfolios. Total adjusted real estate revenue should not be considered as an alternative to revenues computed on a GAAP basis or as a measure of our profitability. Total adjusted real estate revenue may not be comparable to similarly titled measures of other companies.



		Investing for the long run^TM \| 45

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