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

Attached files

Attached files

Stock widget

Investing forum

W. P. Carey Inc. Reports

file	filename
8-K - 8-K - W. P. Carey Inc.	wpc2019q48-ksupplement.htm
EX-99.1 - EXHIBIT 99.1 - W. P. Carey Inc.	wpc2019q48-kerexh991.htm

Exhibit 99.2

W. P. Carey Inc.

Supplemental Information

Fourth Quarter 2019

Important Disclosures About This Supplemental Package

As used in this supplemental package, the terms “W. P. Carey,” “WPC,” “we,” “us” and “our” include W. P. Carey Inc., its consolidated subsidiaries and its predecessors, unless otherwise indicated. “REIT” means real estate investment trust. “CPA:17 – Global” means Corporate Property Associates 17 – Global Incorporated. “CPA:18 – Global” means Corporate Property Associates 18 – Global Incorporated. “CWI REITs” means Carey Watermark Investors Incorporated (“CWI 1”) and Carey Watermark Investors 2 Incorporated (“CWI 2”). “Managed REITs” means CPA:18 – Global and the CWI REITs. “Managed Programs” means the Managed REITs and Carey European Student Housing Fund I, L.P. (“CESH”). “CPA:17 Merger” means our merger with CPA:17 – Global, which was completed on October 31, 2018. CPA:17 – Global was included in the Managed REITs prior to the CPA:17 Merger. “U.S.” means United States. “AUM” means assets under management. “ABR” means contractual minimum annualized base rent. “SEC” means Securities and Exchange Commission.

Amounts may not sum to totals due to rounding.

Important Note Regarding Non-GAAP Financial Measures

This supplemental package includes certain “non-GAAP” supplemental measures that are not defined by generally accepted accounting principles (“GAAP”), including funds from operations (“FFO”); adjusted funds from operations (“AFFO”); earnings before interest, taxes, depreciation and amortization (“EBITDA”); adjusted EBITDA; pro rata cash net operating income (“pro rata cash NOI”); and normalized pro rata cash NOI. A description of these non-GAAP financial measures and reconciliations to their most directly comparable GAAP measures, as well as a description of other metrics presented, are provided within the Appendix to this supplemental package. FFO is a non-GAAP measure defined by the National Association of Real Estate Investments Trusts, Inc. (“NAREIT”), an industry trade group.

W. P. Carey Inc.

Supplemental Information – Fourth Quarter 2019



Table of Contents



Overview
Summary Metrics	1
Components of Net Asset Value	3

Financial Results
Statements of Income – Last Five Quarters
Consolidated	6
Real Estate	7
Investment Management	8
FFO and AFFO – Last Five Quarters
Consolidated	9
Real Estate	10
Investment Management	11
Elements of Pro Rata Statement of Income and AFFO Adjustments	12
Capital Expenditures	14

Balance Sheets and Capitalization
Consolidated Balance Sheets	16
Capitalization	17
Debt Overview	18
Debt Maturity	19
Senior Unsecured Notes	20

Real Estate
Investment Activity
Capital Investment Projects	22
Acquisitions and Completed Capital Investment Projects	23
Dispositions	25
Joint Ventures	26
Top Ten Tenants	27
Diversification by Property Type	28
Diversification by Tenant Industry	29
Diversification by Geography	30
Contractual Rent Increases	31
Same Store Analysis	32
Leasing Activity	33
Lease Expirations	34

Investment Management
Selected Information – Managed Programs	36
Managed Programs Fee Summary	37
Investment Activity – Managed Programs	38
Summary of Future Liquidity Strategies for the Managed Programs	39
Summary of Back-End Fees for / Interests in the Managed Programs	40

Appendix
Normalized Pro Rata Cash NOI	42
Adjusted EBITDA – Last Five Quarters
Consolidated	44
Real Estate	45
Investment Management	46
Terms and Definitions	47

W. P. Carey Inc.

Overview – Fourth Quarter 2019



Summary Metrics

As of or for the three months ended December 31, 2019.



Financial Results
	Segment
	Owned Real Estate		Investment Management		Total
Revenues, including reimbursable costs – consolidated ($000s)	$	296,362	$	14,865	$	311,227
Net income attributable to W. P. Carey ($000s)	124,333		5,039		129,372
Net income attributable to W. P. Carey per diluted share	0.72		0.03		0.75
Normalized pro rata cash NOI from real estate ($000s) ^{(a) (b)}	271,117		N/A		271,117
Adjusted EBITDA ($000s) ^(a) ^(b)	270,272		13,405		283,677
AFFO attributable to W. P. Carey ($000s) ^{(a) (b)}	210,188		11,827		222,015
AFFO attributable to W. P. Carey per diluted share ^(a) ^(b)	1.21		0.07		1.28

Dividends declared per share – fourth quarter					1.038
Dividends declared per share – fourth quarter annualized					4.152
Dividend yield – annualized, based on quarter end share price of $80.04					5.2		%
Dividend payout ratio – for the year ended December 31, 2019 ^(c)					82.8		%

Balance Sheet and Capitalization
Equity market capitalization – based on quarter end share price of $80.04 ($000s)					$	13,789,150
Pro rata net debt ($000s) ^(d)					6,102,032
Enterprise value ($000s)					19,891,182

Total consolidated debt ($000s)					6,053,943
Gross assets ($000s) ^(e)					15,022,611
Liquidity ($000s) ^(f)					1,494,761

Pro rata net debt to enterprise value ^(b)					30.7		%
Pro rata net debt to adjusted EBITDA (annualized) ^(a) ^(b)					5.4x
Total consolidated debt to gross assets					40.3		%
Total consolidated secured debt to gross assets					9.7		%

Weighted-average interest rate ^(b)					3.2		%
Weighted-average debt maturity (years) ^(b)					5.1

Moody's Investors Service – corporate rating					Baa2 (stable)
Standard & Poor's Ratings Services – issuer rating					BBB (positive)

Real Estate Portfolio (Pro Rata)
ABR – total portfolio ($000s) ^(g)					$	1,118,519
ABR – unencumbered portfolio ($000s) ^{(g) (h)}					$	817,034
Number of net-leased properties					1,214
Number of operating properties ⁽ⁱ⁾					21
Number of tenants –net-leased properties					345

ABR from investment grade tenants as a % of total ABR – net-leased properties ^(j)					30.1		%

Net-leased properties – square footage (millions)					140.0

Occupancy – net-leased properties					98.8		%
Weighted-average lease term (years)					10.7

Maximum commitment for capital investment projects expected to be completed during 2020 ($000s)					$	242,567
Acquisitions and completed capital investment projects – fourth quarter ($000s)					411,700
Dispositions – fourth quarter ($000s)					347,833

________


(a)	Normalized pro rata cash NOI, adjusted EBITDA and AFFO are non-GAAP measures. See the Terms and Definitions section in the Appendix for a description of our non-GAAP measures and for details on how certain non-GAAP measures are calculated.


(b)	Presented on a pro rata basis. See the Terms and Definitions section in the Appendix for a description of pro rata.


(c)	Represents dividends declared per share divided by AFFO per diluted share on a year-to-date basis.


(d)	Represents total pro rata debt outstanding less consolidated cash and cash equivalents. See the Terms and Definitions section in the Appendix for a description of pro rata.



		Investing for the long run^TM \| 1

W. P. Carey Inc.

Overview – Fourth Quarter 2019


(e)	Gross assets represent consolidated total assets before accumulated depreciation on buildings and improvements. Gross assets are net of accumulated amortization on in-place lease intangible assets of $676.0 million and above-market rent intangible assets of $398.3 million.


(f)	Represents availability on our Senior Unsecured Credit Facility plus consolidated cash and cash equivalents.


(g)	See the Terms and Definitions section in the Appendix for a description of ABR.


(h)	Represents ABR from properties unencumbered by non-recourse mortgage debt


(i)	Comprised of 19 self-storage properties and two hotels, one of which was sold in January 2020.

(j)

Percentage of portfolio is based on ABR, as of December 31, 2019. Includes tenants or guarantors with investment grade ratings (22.0%) and subsidiaries of non-guarantor parent companies with investment grade ratings (8.1%). Investment grade refers to an entity with a rating of BBB- or higher from Standard & Poor’s Ratings Services or Baa3 or higher from Moody’s Investors Service. See the Terms and Definitions section in the Appendix for a description of ABR.



		Investing for the long run^TM \| 2

W. P. Carey Inc.

Overview – Fourth Quarter 2019



Components of Net Asset Value

Dollars in thousands, except per share amounts.



Real Estate	Three Months Ended Dec. 31, 2019		Annualized
Normalized pro rata cash NOI ^{(a) (b)}	$	271,117	$	1,084,468

Investment Management
Adjusted EBITDA ^{(a) (b)}	13,405		53,620
Selected Components of Adjusted EBITDA:
Asset management revenue ^(c)	9,732		38,928
Structuring and other advisory revenue ^(c)	1,061		N/A
Operating partnership interests in real estate cash flow of Managed REITs ^(d)	5,669		22,676
Back-end fees and interests associated with the Managed Programs	See the Summary of Back-End Fees for / Interests in the Managed Programs section for details.

Balance Sheet – Selected Information (Consolidated Unless Otherwise Stated)			As of Dec. 31, 2019
Assets
Book value of real estate excluded from normalized pro rata cash NOI ^(e)			$	186,454
Cash and cash equivalents			196,028
Due from affiliates			57,816
Other assets, net:
Investment in shares of a cold storage operator			$	146,190
Straight-line rent adjustments			137,428
Restricted cash, including escrow			55,490
Loans receivable			47,737
Accounts receivable			46,481
Taxes receivable			45,268
Deferred charges			40,119
Deposits for construction			36,472
Securities and derivatives			29,423
Investment in shares of Guggenheim Credit Income Fund			12,177
Deferred income taxes			8,901
Other intangible assets, net			8,075
Prepaid expenses			7,741
Office lease right-of-use assets, net ^(f)			7,519
Leasehold improvements, furniture and fixtures			1,580
Other			1,036
Total other assets, net			$	631,637

Liabilities
Total pro rata debt outstanding ^{(b) (g)}			$	6,298,060
Dividends payable			181,346
Deferred income taxes			179,309
Accounts payable, accrued expenses and other liabilities:
Accounts payable and accrued expenses			$	160,360
Prepaid and deferred rents			118,121
Operating lease liabilities ^(f)			87,658
Accrued taxes payable			44,255
Tenant security deposits			41,171
Securities and derivatives			6,174
Other			29,666
Total accounts payable, accrued expenses and other liabilities			$	487,405



		Investing for the long run^TM \| 3

W. P. Carey Inc.

Overview – Fourth Quarter 2019



Other	Ownership %		Number of Shares / Units Owned	NAV			Implied Value
			A	B			A x B
Ownership in Managed Programs: ^(h)
CPA:18 – Global	3.9	%	5,753,883	$	8.67	⁽ⁱ⁾	$	49,886
CWI 1	3.9	%	5,632,897	10.39		⁽ⁱ⁾	58,526
CWI 2	3.8	%	3,506,798	11.41		⁽ⁱ⁾	40,013
CESH	2.4	%	3,492	1,000.00		^(j)	3,492
							$	151,917

________


(a)	Normalized pro rata cash NOI and adjusted EBITDA are non-GAAP measures. See the Terms and Definitions section in the Appendix for a description of our non-GAAP measures and for details on how they are calculated.


(b)	Presented on a pro rata basis. See the Terms and Definitions section in the Appendix for a description of pro rata.


(c)	Amounts are gross of fees paid to the respective subadvisors of CWI 1 and CWI 2.

(d)

We are entitled to receive distributions of up to 10% of the Available Cash of each of the Managed REITs, as defined in their respective operating partnership agreements. Pursuant to the terms of their subadvisory agreements, however, 20% of the distributions of Available Cash we receive from CWI 1 and 25% of the distributions of Available Cash we receive from CWI 2 are paid to their respective subadvisors. Amounts for CWI 1 and CWI 2 are net of fees paid to their respective subadvisors.


(e)	Represents the value of real estate not included in normalized pro rata cash NOI, such as vacant assets, in-progress build-to-suit properties, a common equity interest in a Las Vegas retail center and an unstabilized hotel operating property, which was classified as held for sale as of December 31, 2019 and sold in January 2020.

(f)

We adopted Accounting Standards Update 2016-02, Leases (Topic 842) for our interim and annual periods beginning January 1, 2019, whereby the rights and obligations of lessees under substantially all leases, existing and new, are capitalized and recorded on the balance sheet. As a result, we recognized $114.2 million of land lease right-of-use assets included in In-place lease intangible assets and other, $7.5 million of office lease right-of-use assets in Other assets, net, and $87.7 million of corresponding operating lease liabilities for certain operating office and land lease arrangements in Accounts payable, accrued expenses and other liabilities as of December 31, 2019.


(g)	Excludes unamortized discount, net totaling $26.8 million and unamortized deferred financing costs totaling $23.6 million as of December 31, 2019.


(h)	Separate from operating partnership interests in the Managed REITs and our interests in unconsolidated real estate joint ventures with our affiliate, CPA:18 – Global.


(i)	We calculated the estimated net asset values per share (“NAVs”) by relying in part on an estimate of the fair market values of the respective real estate portfolios adjusted to give effect to mortgage loans, both provided by third parties, as well as other adjustments. Refer to the SEC filings of the Managed REITs for the calculation methodologies of the respective NAVs.


(j)	We own limited partnership units of CESH at its private placement price of $1,000 per unit; we do not intend to calculate a NAV for CESH.



		Investing for the long run^TM \| 4

W. P. Carey Inc.

Financial Results

Fourth Quarter 2019



		Investing for the long run^TM \| 5

W. P. Carey Inc.

Financial Results – Fourth Quarter 2019



Consolidated Statements of Income – Last Five Quarters

In thousands, except share and per share amounts.



	Three Months Ended
	Dec. 31, 2019			Sep. 30, 2019			Jun. 30, 2019			Mar. 31, 2019			Dec. 31, 2018
Revenues
Real Estate:
Lease revenues	$	274,795		$	278,839		$	269,802		$	262,939		$	233,632
Lease termination income and other	12,317			14,377			6,304			3,270			2,952
Operating property revenues	9,250			9,538			15,436			15,996			11,707
	296,362			302,754			291,542			282,205			248,291
Investment Management:
Asset management revenue	9,732			9,878			9,790			9,732			11,954
Reimbursable costs from affiliates	4,072			4,786			3,821			3,868			5,042
Structuring and other advisory revenue	1,061			587			58			2,518			8,108
	14,865			15,251			13,669			16,118			25,104
	311,227			318,005			305,211			298,323			273,395
Operating Expenses
Depreciation and amortization	111,607			109,517			113,632			112,379			93,321
General and administrative	17,069			17,210			19,729			21,285			17,449
Reimbursable tenant costs	12,877			15,611			13,917			13,171			10,145
Property expenses, excluding reimbursable tenant costs	9,341			10,377			9,915			9,912			8,319
Operating property expenses	8,000			8,547			10,874			10,594			7,844
Impairment charges	6,758			25,781			—			—			—
Stock-based compensation expense	4,939			4,747			4,936			4,165			3,902
Reimbursable costs from affiliates	4,072			4,786			3,821			3,868			5,042
Subadvisor fees ^(a)	1,964			1,763			1,650			2,202			2,226
Merger and other expenses ^(b)	(811		)	70			696			146			37,098
	175,816			198,409			179,170			177,722			185,346
Other Income and Expenses
Interest expense	(53,667		)	(58,626		)	(59,719		)	(61,313		)	(57,250		)
Other gains and (losses) ^(c)	43,593			(12,402		)	(671		)	955			13,215
Gain (loss) on sale of real estate, net	17,501			71			(362		)	933			99,618
Equity in earnings of equity method investments in the Managed Programs and real estate	8,018			5,769			3,951			5,491			15,268
(Loss) gain on change in control of interests ^{(d) (e)}	—			(8,416		)	—			—			47,814
	15,445			(73,604		)	(56,801		)	(53,934		)	118,665
Income before income taxes	150,856			45,992			69,240			66,667			206,714
(Provision for) benefit from income taxes	(21,064		)	(4,157		)	(3,119		)	2,129			(11,436		)
Net Income	129,792			41,835			66,121			68,796			195,278
Net income attributable to noncontrolling interests	(420		)	(496		)	(83		)	(302		)	(2,015		)
Net Income Attributable to W. P. Carey	$	129,372		$	41,339		$	66,038		$	68,494		$	193,263

Basic Earnings Per Share	$	0.75		$	0.24		$	0.39		$	0.41		$	1.33
Diluted Earnings Per Share	$	0.75		$	0.24		$	0.38		$	0.41		$	1.33
Weighted-Average Shares Outstanding
Basic	173,153,811			172,235,066			171,304,112			167,234,121			145,480,858
Diluted	173,442,101			172,486,506			171,490,625			167,434,740			145,716,583

Dividends Declared Per Share	$	1.038		$	1.036		$	1.034		$	1.032		$	1.030

________


(a)	Primarily comprised of fees paid to subadvisors for CWI 1 and CWI 2. Refer to the Managed Programs Fee Summary section for further information.


(b)	Amount for the three months ended December 31, 2018 is primarily comprised of costs incurred in connection with the CPA:17 Merger.


(c)	Amount for the three months ended December 31, 2019 is primarily comprised of mark-to-market adjustment for our investment in shares of a cold storage operator of $36.1 million, realized gains on foreign currency exchange derivatives of $4.2 million and net gains on foreign currency transactions of $3.6 million.

(d)

Amount for the three months ended September 30, 2019 represents a loss recognized on the purchase of the remaining interest in an investment from CPA:17 in the CPA:17 Merger, which we had previously accounted for under the equity method. We recognized this loss because we identified certain measurement period adjustments during the third quarter of 2019 that impacted the provisional accounting for this investment.

(e)

Amount for the three months ended December 31, 2018 includes a gain of $18.8 million recognized on the purchase of the remaining interests in six investments from CPA:17 – Global in the CPA:17 Merger, which we had previously accounted for under the equity method. Amount for the three months ended December 31, 2018 also includes a gain of $29.0 million recognized on our previously held interest in shares of CPA:17 – Global common stock in connection with the CPA:17 Merger.



		Investing for the long run^TM \| 6

W. P. Carey Inc.

Financial Results – Fourth Quarter 2019



Statements of Income, Real Estate – Last Five Quarters

In thousands, except share and per share amounts.



	Three Months Ended
	Dec. 31, 2019			Sep. 30, 2019			Jun. 30, 2019			Mar. 31, 2019			Dec. 31, 2018
Revenues
Lease revenues	$	274,795		$	278,839		$	269,802		$	262,939		$	233,632
Lease termination income and other	12,317			14,377			6,304			3,270			2,952
Operating property revenues	9,250			9,538			15,436			15,996			11,707
	296,362			302,754			291,542			282,205			248,291
Operating Expenses
Depreciation and amortization	110,648			108,573			112,666			111,413			92,330
Reimbursable tenant costs	12,877			15,611			13,917			13,171			10,145
General and administrative	12,634			13,973			15,001			15,188			13,197
Property expenses, excluding reimbursable tenant costs	9,341			10,377			9,915			9,912			8,319
Operating property expenses	8,000			8,547			10,874			10,594			7,844
Impairment charges	6,758			25,781			—			—			—
Stock-based compensation expense	3,531			3,435			3,482			2,800			2,774
Merger and other expenses ^(a)	(811		)	70			696			146			37,098
	162,978			186,367			166,551			163,224			171,707
Other Income and Expenses
Interest expense	(53,667		)	(58,626		)	(59,719		)	(61,313		)	(57,250		)
Other gains and (losses)	43,581			(12,938		)	(1,362		)	970			15,075
Gain (loss) on sale of real estate, net	17,501			71			(362		)	933			99,618
Equity in earnings (losses) of equity method investments in real estate	1,631			578			230			(78		)	1,755
(Loss) gain on change in control of interests ^{(b) (c)}	—			(8,416		)	—			—			18,792
	9,046			(79,331		)	(61,213		)	(59,488		)	77,990
Income before income taxes	142,430			37,056			63,778			59,493			154,574
Provision for income taxes	(18,113		)	(3,511		)	(3,019		)	(6,159		)	(948		)
Net Income from Real Estate	124,317			33,545			60,759			53,334			153,626
Net loss (income) attributable to noncontrolling interests	16			11			9			74			(2,015		)
Net Income from Real Estate Attributable to W. P. Carey	$	124,333		$	33,556		$	60,768		$	53,408		$	151,611

Basic Earnings Per Share	$	0.72		$	0.19		$	0.36		$	0.32		$	1.04
Diluted Earnings Per Share	$	0.72		$	0.19		$	0.35		$	0.32		$	1.04
Weighted-Average Shares Outstanding
Basic	173,153,811			172,235,066			171,304,112			167,234,121			145,480,858
Diluted	173,442,101			172,486,506			171,490,625			167,434,740			145,716,583

________


(a)	Amount for the three months ended December 31, 2018 is primarily comprised of costs incurred in connection with the CPA:17 Merger.

(b)


(c)	Amount for the three months ended December 31, 2018 represents a gain recognized on the purchase of the remaining interests in six investments from CPA:17 – Global in the CPA:17 Merger, which we had previously accounted for under the equity method.



		Investing for the long run^TM \| 7

W. P. Carey Inc.

Financial Results – Fourth Quarter 2019



Statements of Income, Investment Management – Last Five Quarters

In thousands, except share and per share amounts.



	Three Months Ended
	Dec. 31, 2019			Sep. 30, 2019			Jun. 30, 2019			Mar. 31, 2019			Dec. 31, 2018
Revenues
Asset management revenue	$	9,732		$	9,878		$	9,790		$	9,732		$	11,954
Reimbursable costs from affiliates	4,072			4,786			3,821			3,868			5,042
Structuring and other advisory revenue	1,061			587			58			2,518			8,108
	14,865			15,251			13,669			16,118			25,104
Operating Expenses
General and administrative	4,435			3,237			4,728			6,097			4,252
Reimbursable costs from affiliates	4,072			4,786			3,821			3,868			5,042
Subadvisor fees ^(a)	1,964			1,763			1,650			2,202			2,226
Stock-based compensation expense	1,408			1,312			1,454			1,365			1,128
Depreciation and amortization	959			944			966			966			991
	12,838			12,042			12,619			14,498			13,639
Other Income and Expenses
Equity in earnings of equity method investments in the Managed Programs	6,387			5,191			3,721			5,569			13,513
Other gains and (losses)	12			536			691			(15		)	(1,860		)
Gain on change in control of interests ^(b)	—			—			—			—			29,022
	6,399			5,727			4,412			5,554			40,675
Income before income taxes	8,426			8,936			5,462			7,174			52,140
(Provision for) benefit from income taxes	(2,951		)	(646		)	(100		)	8,288			(10,488		)
Net Income from Investment Management	5,475			8,290			5,362			15,462			41,652
Net income attributable to noncontrolling interests	(436		)	(507		)	(92		)	(376		)	—
Net Income from Investment Management Attributable to W. P. Carey	$	5,039		$	7,783		$	5,270		$	15,086		$	41,652

Basic Earnings Per Share	$	0.03		$	0.05		$	0.03		$	0.09		$	0.29
Diluted Earnings Per Share	$	0.03		$	0.05		$	0.03		$	0.09		$	0.29
Weighted-Average Shares Outstanding
Basic	173,153,811			172,235,066			171,304,112			167,234,121			145,480,858
Diluted	173,442,101			172,486,506			171,490,625			167,434,740			145,716,583

________


(a)	Primarily comprised of fees paid to subadvisors for CWI 1 and CWI 2. Refer to the Managed Programs Fee Summary section for further information.


(b)	Amount for the three months ended December 31, 2018 represents a gain recognized on our previously held interest in shares of CPA:17 – Global common stock in connection with the CPA:17 Merger.



		Investing for the long run^TM \| 8

W. P. Carey Inc.

Financial Results – Fourth Quarter 2019



FFO and AFFO, Consolidated – Last Five Quarters

In thousands, except share and per share amounts.



	Three Months Ended
	Dec. 31, 2019			Sep. 30, 2019			Jun. 30, 2019			Mar. 31, 2019			Dec. 31, 2018
Net income attributable to W. P. Carey	$	129,372		$	41,339		$	66,038		$	68,494		$	193,263
Adjustments:
Depreciation and amortization of real property	110,354			108,279			112,360			111,103			92,018
(Gain) loss on sale of real estate, net	(17,501		)	(71		)	362			(933		)	(99,618		)
Impairment charges	6,758			25,781			—			—			—
Loss (gain) on change in control of interests ^{(a) (b)}	—			8,416			—			—			(47,814		)
Proportionate share of adjustments to equity in net income of partially owned entities ^(c)	2,703			4,210			4,489			4,424			3,225
Proportionate share of adjustments for noncontrolling interests ^(d)	(4		)	(4		)	(31		)	(30		)	(762		)
Total adjustments	102,310			146,611			117,180			114,564			(52,951		)
FFO (as defined by NAREIT) Attributable to W. P. Carey^(e)	231,682			187,950			183,218			183,058			140,312
Adjustments:
Other (gains) and losses ^(f)	(38,196		)	18,618			5,724			4,930			(9,001		)
Above- and below-market rent intangible lease amortization, net	17,037			14,969			16,450			15,927			14,985
Tax expense (benefit) – deferred and other ^(g)	12,874			(1,039		)	(933		)	(4,928		)	6,288
Straight-line and other rent adjustments ^(h)	(11,184		)	(6,370		)	(7,975		)	(6,258		)	(6,096		)
Stock-based compensation	4,939			4,747			4,936			4,165			3,902
Amortization of deferred financing costs	3,225			2,991			2,774			2,724			2,572
Merger and other expenses ⁽ⁱ⁾	(811		)	70			696			146			37,098
Other amortization and non-cash items	546			379			1,706			567			468
Proportionate share of adjustments to equity in net income of partially owned entities ^(c)	1,908			1,920			1,876			1,461			3,192
Proportionate share of adjustments for noncontrolling interests ^(d)	(5		)	(12		)	(7		)	(25		)	140
Total adjustments	(9,667		)	36,273			25,247			18,709			53,548
AFFO Attributable to W. P. Carey^(e)	$	222,015		$	224,223		$	208,465		$	201,767		$	193,860

Summary
FFO (as defined by NAREIT) attributable to W. P. Carey^(e)	$	231,682		$	187,950		$	183,218		$	183,058		$	140,312
FFO (as defined by NAREIT) attributable to W. P. Carey per diluted share ^(e)	$	1.34		$	1.09		$	1.07		$	1.09		$	0.96
AFFO attributable to W. P. Carey^(e)	$	222,015		$	224,223		$	208,465		$	201,767		$	193,860
AFFO attributable to W. P. Carey per diluted share ^(e)	$	1.28		$	1.30		$	1.22		$	1.21		$	1.33
Diluted weighted-average shares outstanding	173,442,101			172,486,506			171,490,625			167,434,740			145,716,583

________

(a)

Amount for the three months ended September 30, 2019 represents a loss recognized on the purchase of the remaining interest in a real estate investment from CPA:17 in the CPA:17 Merger, which we had previously accounted for under the equity method. We recognized this loss because we identified certain measurement period adjustments during the third quarter of 2019 that impacted the provisional accounting for this investment.

(b)

Amount for the three months ended December 31, 2018 includes a gain recognized on the purchase of the remaining interests in six investments from CPA:17 – Global in the CPA:17 Merger, which we had previously accounted for under the equity method. Amount for the three months ended December 31, 2018 also includes a gain recognized on our previously held interest in shares of CPA:17 – Global common stock in connection with the CPA:17 Merger.


(c)	Equity income, including amounts that are not typically recognized for FFO and AFFO, is recognized within Equity in earnings of equity method investments in the Managed Programs and real estate on the consolidated statements of income. This represents adjustments to equity income to reflect FFO and AFFO on a pro rata basis.


(d)	Adjustments disclosed elsewhere in this reconciliation are on a consolidated basis. This adjustment reflects our FFO or AFFO on a pro rata basis.


(e)	FFO and AFFO are non-GAAP measures. See the Terms and Definitions section in the Appendix for a description of our non-GAAP measures.

(f)

Amount for the three months ended December 31, 2019 is primarily comprised of gain on marketable securities of $35.4 million and gains from foreign currency movements of $3.6 million. Beginning in the second quarter of 2019, we aggregated (gain) loss on extinguishment of debt and realized (gains) losses on foreign currency (both of which were previously disclosed as separate AFFO adjustment line items), as well as certain other adjustments, within this line item, which is comprised of adjustments related to Other gains and (losses) on our consolidated statements of income. Prior period amounts have been reclassified to conform to the current period presentation.


(g)	Amount for the three months ended March 31, 2019 includes a current tax benefit and amount for the three months ended December 31, 2018 includes a current tax expense, both of which are excluded from AFFO as they were incurred as a result of the CPA:17 Merger.


(h)	Amount for the three months ended December 31, 2019 includes an adjustment to exclude $6.2 million of non-cash lease termination revenue, which will be collected and reflected within AFFO over the remaining master lease term.


(i)	Amount for the three months ended December 31, 2018 is primarily comprised of costs incurred in connection with the CPA:17 Merger.



		Investing for the long run^TM \| 9

W. P. Carey Inc.

Financial Results – Fourth Quarter 2019



FFO and AFFO, Real Estate – Last Five Quarters

In thousands, except share and per share amounts.



	Three Months Ended
	Dec. 31, 2019			Sep. 30, 2019			Jun. 30, 2019			Mar. 31, 2019			Dec. 31, 2018
Net income from Real Estate attributable to W. P. Carey	$	124,333		$	33,556		$	60,768		$	53,408		$	151,611
Adjustments:
Depreciation and amortization of real property	110,354			108,279			112,360			111,103			92,018
(Gain) loss on sale of real estate, net	(17,501		)	(71		)	362			(933		)	(99,618		)
Impairment charges	6,758			25,781			—			—			—
Loss (gain) on change in control of interests ^{(a) (b)}	—			8,416			—			—			(18,792		)
Proportionate share of adjustments to equity in net income of partially owned entities ^(c)	2,703			4,210			4,489			4,424			3,225
Proportionate share of adjustments for noncontrolling interests ^(d)	(4		)	(4		)	(31		)	(30		)	(762		)
Total adjustments	102,310			146,611			117,180			114,564			(23,929		)
FFO (as defined by NAREIT) Attributable to W. P. Carey – Real Estate ^(e)	226,643			180,167			177,948			167,972			127,682
Adjustments:
Other (gains) and losses ^(f)	(38,546		)	18,956			5,888			3,929			(11,269		)
Above- and below-market rent intangible lease amortization, net	17,037			14,969			16,450			15,927			14,985
Straight-line and other rent adjustments ^(g)	(11,184		)	(6,370		)	(7,975		)	(6,258		)	(6,096		)
Tax expense (benefit) – deferred and other	9,748			(1,414		)	(853		)	490			(3,949		)
Stock-based compensation	3,531			3,435			3,482			2,800			2,774
Amortization of deferred financing costs	3,225			2,991			2,774			2,724			2,572
Merger and other expenses ^(h)	(811		)	70			696			146			37,098
Other amortization and non-cash items	348			180			1,510			502			260
Proportionate share of adjustments to equity in net income of partially owned entities ^(c)	202			(113		)	(89		)	115			(260		)
Proportionate share of adjustments for noncontrolling interests ^(d)	(5		)	(12		)	(7		)	(25		)	140
Total adjustments	(16,455		)	32,692			21,876			20,350			36,255
AFFO Attributable to W. P. Carey – Real Estate^(e)	$	210,188		$	212,859		$	199,824		$	188,322		$	163,937

Summary
FFO (as defined by NAREIT) attributable to W. P. Carey – Real Estate ^(e)	$	226,643		$	180,167		$	177,948		$	167,972		$	127,682
FFO (as defined by NAREIT) attributable to W. P. Carey per diluted share – Real Estate ^(e)	$	1.31		$	1.04		$	1.04		$	1.00		$	0.87
AFFO attributable to W. P. Carey – Real Estate ^(e)	$	210,188		$	212,859		$	199,824		$	188,322		$	163,937
AFFO attributable to W. P. Carey per diluted share – Real Estate ^(e)	$	1.21		$	1.23		$	1.17		$	1.13		$	1.12
Diluted weighted-average shares outstanding	173,442,101			172,486,506			171,490,625			167,434,740			145,716,583

________

(a)


(b)	Amount for the three months December 31, 2018 represents a gain recognized on the purchase of the remaining interests in six investments from CPA:17 – Global in the CPA:17 Merger, which we had previously accounted for under the equity method.


(c)	Equity income, including amounts that are not typically recognized for FFO and AFFO, is recognized within Equity in earnings of equity method investments in the Managed Programs and real estate on the consolidated statements of income. This represents adjustments to equity income to reflect FFO and AFFO on a pro rata basis.


(d)	Adjustments disclosed elsewhere in this reconciliation are on a consolidated basis. This adjustment reflects our FFO or AFFO on a pro rata basis.


(e)	FFO and AFFO are non-GAAP measures. See the Terms and Definitions section in the Appendix for a description of our non-GAAP measures.

(f)

Amount for the three months ended December 31, 2019 is primarily comprised of gain on marketable securities of $36.1 million and gains from foreign currency movements of $3.6 million. Beginning in the second quarter of 2019, we aggregated (gain) loss on extinguishment of debt and realized (gains) losses on foreign currency (both of which were previously disclosed as separate AFFO adjustment line items), as well as certain other adjustments, within this line item, which is comprised of adjustments related to Other gains and (losses) on our consolidated statements of income. Prior period amounts have been reclassified to conform to the current period presentation.


(g)	Amount for the three months ended December 31, 2019 includes an adjustment to exclude $6.2 million of non-cash lease termination revenue, which will be collected and reflected within AFFO over the remaining master lease term.


(h)	Amount for the three months ended December 31, 2018 is primarily comprised of costs incurred in connection with the CPA:17 Merger.



		Investing for the long run^TM \| 10

W. P. Carey Inc.

Financial Results – Fourth Quarter 2019



FFO and AFFO, Investment Management – Last Five Quarters

In thousands, except share and per share amounts.



	Three Months Ended
	Dec. 31, 2019		Sep. 30, 2019			Jun. 30, 2019			Mar. 31, 2019			Dec. 31, 2018
Net income from Investment Management attributable to W. P. Carey	$	5,039	$	7,783		$	5,270		$	15,086		$	41,652
Adjustments:
Gain on change in control of interests ^(a)	—		—			—			—			(29,022		)
Total adjustments	—		—			—			—			(29,022		)
FFO (as defined by NAREIT) Attributable to W. P. Carey – Investment Management ^(b)	5,039		7,783			5,270			15,086			12,630
Adjustments:
Tax expense (benefit) – deferred and other ^(c)	3,126		375			(80		)	(5,418		)	10,237
Stock-based compensation	1,408		1,312			1,454			1,365			1,128
Other (gains) and losses ^(d)	350		(338		)	(164		)	1,001			2,268
Other amortization and non-cash items	198		199			196			65			208
Proportionate share of adjustments to equity in net income of partially owned entities ^(e)	1,706		2,033			1,965			1,346			3,452
Total adjustments	6,788		3,581			3,371			(1,641		)	17,293
AFFO Attributable to W. P. Carey – Investment Management^(b)	$	11,827	$	11,364		$	8,641		$	13,445		$	29,923

Summary
FFO (as defined by NAREIT) attributable to W. P. Carey – Investment Management ^(b)	$	5,039	$	7,783		$	5,270		$	15,086		$	12,630
FFO (as defined by NAREIT) attributable to W. P. Carey per diluted share – Investment Management ^(b)	$	0.03	$	0.05		$	0.03		$	0.09		$	0.09
AFFO attributable to W. P. Carey – Investment Management^(b)	$	11,827	$	11,364		$	8,641		$	13,445		$	29,923
AFFO attributable to W. P. Carey per diluted share – Investment Management ^(b)	$	0.07	$	0.07		$	0.05		$	0.08		$	0.21
Diluted weighted-average shares outstanding	173,442,101		172,486,506			171,490,625			167,434,740			145,716,583

________


(a)	Amount for the three months ended December 31, 2018 represents a gain recognized on our previously held interest in shares of CPA:17 – Global common stock in connection with the CPA:17 Merger.


(b)	FFO and AFFO are non-GAAP measures. See the Terms and Definitions section in the Appendix for a description of our non-GAAP measures.


(c)	Amount for the three months ended March 31, 2019 includes a current tax benefit and amount for the three months ended December 31, 2018 includes a current tax expense, both of which are excluded from AFFO as they were incurred as a result of the CPA:17 Merger.

(d)

Beginning in the second quarter of 2019, we aggregated realized (gains) losses on foreign currency (which was previously disclosed as a separate AFFO adjustment line item) and certain other adjustments within this line item, which is comprised of adjustments related to Other gains and (losses) on our consolidated statements of income. Prior period amounts have been reclassified to conform to the current period presentation.


(e)	Equity income, including amounts that are not typically recognized for FFO and AFFO, is recognized within Equity in earnings of equity method investments in the Managed Programs and real estate on the consolidated statements of income. This represents adjustments to equity income to reflect FFO and AFFO on a pro rata basis.



		Investing for the long run^TM \| 11

W. P. Carey Inc.

Financial Results – Fourth Quarter 2019



Elements of Pro Rata Statement of Income and AFFO Adjustments

In thousands. For the three months ended December 31, 2019.

We believe that the table below is useful for investors to help them better understand our business by illustrating the impact of each of our AFFO adjustments on our GAAP statement of income line items. This presentation is not an alternative to the GAAP statement of income, nor is AFFO an alternative to net income as determined by GAAP.



	Equity Investments ^(a)			Noncontrolling Interests ^(b)			AFFO Adjustments
Revenues
Real Estate:
Lease revenues	$	5,698		$	(23	)	$	11,874		^(c)
Lease termination income and other	171			(1		)	(6,200		)	^(d)
Operating property revenues:
Hotel revenues	—			—			—
Self-storage revenues	1,243			—			—

Investment Management:
Asset management revenue	—			—			—
Reimbursable costs from affiliates	—			—			—
Structuring and other advisory revenue	—			—			—

Operating Expenses
Depreciation and amortization	3,127			(4		)	(113,674		)	^(e)
General and administrative	6			(2		)	—
Reimbursable tenant costs	452			(1		)	(170		)
Property expenses, excluding reimbursable tenant costs	232			—			(473		)	^(f)
Operating property expenses:
Hotel expenses	—			—			—
Self-storage expenses	791			—			21
Impairment charges	—			—			(6,758		)	^(f)
Stock-based compensation expense	—			—			(4,939		)	^(f)
Reimbursable costs from affiliates	—			—			—
Subadvisor fees	—			—			—
Merger and other expenses	—			—			811

Other Income and Expenses
Interest expense	(1,383		)	—			3,170			^(g)
Other gains and (losses)	33			5			(38,199		)	^(h)
Gain on sale of real estate, net	—			—			(17,501		)
Equity in earnings of equity method investments in the Managed Programs and real estate:
Income related to our general partnership interests in the Managed REITs	—			(438		)	—
Joint ventures	(1,063		)	—			(257		)	⁽ⁱ⁾
Income related to our ownership in the Managed Programs	—			—			1,705			^(j)

Provision for income taxes	(91		)	—			12,869			^(k)
Net income attributable to noncontrolling interests	—			450			—

________


(a)	Represents the break-out by line item of amounts recorded in Equity in earnings of equity method investments in the Managed Programs and real estate.


(b)	Represents the break-out by line item of amounts recorded in Net income attributable to noncontrolling interests.


(c)	Represents the reversal of amortization of above- or below-market lease intangibles of $17.0 million and the elimination of non-cash amounts related to straight-line rent and other of $5.1 million.


(d)	Adjustment to exclude $6.2 million of non-cash lease termination revenue, which will be collected and reflected within AFFO over the remaining master lease term.


(e)	Adjustment is a non-cash adjustment excluding corporate depreciation and amortization.


(f)	Adjustment to exclude a non-cash item.



		Investing for the long run^TM \| 12

W. P. Carey Inc.

Financial Results – Fourth Quarter 2019


(g)	Represents the elimination of non-cash components of interest expense, such as deferred financing costs, debt premiums and discounts.


(h)	Represents eliminations of gains (losses) related to the extinguishment of debt, unrealized foreign currency gains (losses), unrealized gains (losses) on derivatives, gains (losses) on marketable securities and other items.


(i)	Adjustments to include our pro rata share of AFFO adjustments from equity investments.


(j)	Represents modified funds from operations (“MFFO”) or Adjusted MFFO from the Managed Programs (as applicable) in place of our pro rata share of net income from our ownership in the Managed Programs. Adjusted MFFO is defined as MFFO adjusted for deferred taxes and excluding the adjustment for realized gains and losses on hedges.


(k)	Primarily represents the elimination of deferred taxes.



		Investing for the long run^TM \| 13

W. P. Carey Inc.

Financial Results – Fourth Quarter 2019



Capital Expenditures

In thousands. For the three months ended December 31, 2019.



Tenant Improvements and Leasing Costs
Tenant improvements	$	1,907
Leasing costs	1,873
Tenant Improvements and Leasing Costs	3,780

Maintenance Capital Expenditures
Net-lease properties	1,482
Operating properties	104
Maintenance Capital Expenditures	1,586

Total: Tenant Improvements and Leasing Costs, and Maintenance Capital Expenditures	$	5,366

Non-Maintenance Capital Expenditures
Net-lease properties	$	1,975
Operating properties	—
Non-Maintenance Capital Expenditures	$	1,975

Pre-Development Capital Expenditures
Net-lease properties	$	—
Operating properties	1,187
Pre-Development Capital Expenditures	$	1,187



		Investing for the long run^TM \| 14

W. P. Carey Inc.

Balance Sheets and Capitalization

Fourth Quarter 2019



		Investing for the long run^TM \| 15

W. P. Carey Inc.

Balance Sheets and Capitalization – Fourth Quarter 2019



Consolidated Balance Sheets

In thousands, except share and per share amounts.



	December 31,
	2019			2018
Assets
Investments in real estate:
Land, buildings and improvements ^(a)	$	9,856,191		$	9,251,396
Net investments in direct financing leases	896,549			1,306,215
In-place lease intangible assets and other	2,186,851			2,009,628
Above-market rent intangible assets	909,139			925,797
Investments in real estate	13,848,730			13,493,036
Accumulated depreciation and amortization ^(b)	(2,035,995		)	(1,564,182		)
Assets held for sale, net ^(c)	104,010			—
Net investments in real estate	11,916,745			11,928,854
Equity investments in the Managed Programs and real estate ^(d)	324,004			329,248
Cash and cash equivalents	196,028			217,644
Due from affiliates	57,816			74,842
Other assets, net	631,637			711,507
Goodwill	934,688			920,944
Total assets	$	14,060,918		$	14,183,039

Liabilities and Equity
Debt:
Senior unsecured notes, net	$	4,390,189		$	3,554,470
Unsecured revolving credit facility	201,267			91,563
Non-recourse mortgages, net	1,462,487			2,732,658
Debt, net	6,053,943			6,378,691
Accounts payable, accrued expenses and other liabilities	487,405			403,896
Below-market rent and other intangible liabilities, net	210,742			225,128
Deferred income taxes	179,309			173,115
Dividends payable	181,346			172,154
Total liabilities	7,112,745			7,352,984

Preferred stock, $0.001 par value, 50,000,000 shares authorized; none issued	—			—
Common stock, $0.001 par value, 450,000,000 shares authorized; 172,278,242 and 165,279,642 shares, respectively, issued and outstanding	172			165
Additional paid-in capital	8,717,535			8,187,335
Distributions in excess of accumulated earnings	(1,557,374		)	(1,143,992		)
Deferred compensation obligation	37,263			35,766
Accumulated other comprehensive loss	(255,667		)	(254,996		)
Total stockholders' equity	6,941,929			6,824,278
Noncontrolling interests	6,244			5,777
Total equity	6,948,173			6,830,055
Total liabilities and equity	$	14,060,918		$	14,183,039

________


(a)	Includes $83.1 million and $470.7 million of amounts attributable to operating properties as of December 31, 2019 and 2018, respectively.


(b)	Includes $961.7 million and $734.8 million of accumulated depreciation on buildings and improvements as of December 31, 2019 and 2018, respectively, and $1,074.3 million and $829.4 million of accumulated amortization on lease intangibles as of December 31, 2019 and 2018, respectively.


(c)	At December 31, 2019, we had one hotel operating property classified as Assets held for sale, net, which was sold in January 2020.


(d)	Our equity investments in real estate joint ventures totaled $194.4 million and $221.7 million as of December 31, 2019 and 2018, respectively. Our equity investments in the Managed Programs totaled $129.6 million and $107.6 million as of December 31, 2019 and 2018, respectively.



		Investing for the long run^TM \| 16

W. P. Carey Inc.

Balance Sheets and Capitalization – Fourth Quarter 2019



Capitalization

In thousands, except share and per share amounts. As of December 31, 2019.



Description	Shares	Share Price		Market Value
Equity
Common equity	172,278,242	$	80.04	$	13,789,150
Preferred equity				—
Total Equity Market Capitalization				13,789,150

				Outstanding Balance ^(a)
Pro Rata Debt
Non-recourse mortgages				1,663,293
Unsecured revolving credit facility (due February 22, 2021)				201,267
Senior unsecured notes:
Due January 20, 2023 (EUR)				561,700
Due April 1, 2024 (USD)				500,000
Due July 19, 2024 (EUR)				561,700
Due February 1, 2025 (USD)				450,000
Due April 9, 2026 (EUR)				561,700
Due October 1, 2026 (USD)				350,000
Due April 15, 2027 (EUR)				561,700
Due April 15, 2028 (EUR)				561,700
Due July 15, 2029 (USD)				325,000
Total Pro Rata Debt				6,298,060

Total Capitalization				$	20,087,210

________


(a)	Excludes unamortized discount, net totaling $26.8 million and unamortized deferred financing costs totaling $23.6 million as of December 31, 2019.



		Investing for the long run^TM \| 17

W. P. Carey Inc.

Balance Sheets and Capitalization – Fourth Quarter 2019



Debt Overview

Dollars in thousands. Pro rata. As of December 31, 2019.



	USD-Denominated				EUR-Denominated				Other Currencies ^(a)				Total
													Outstanding Balance
	Out-standing Balance (in USD)		Weigh-ted Avg. Interest Rate		Out-standing Balance (in USD)		Weigh-ted Avg. Interest Rate		Out-standing Balance (in USD)		Weigh-ted Avg. Interest Rate		Amount (in USD)		% of Total		Weigh-ted Avg. Interest Rate		Weigh-ted Avg. Maturity (Years)
Non-Recourse Debt ^{(b) (c)}
Fixed	$	1,135,893	5.1	%	$	183,383	3.7	%	$	29,973	4.8	%	$	1,349,249	21.4	%	4.9	%	3.2
Variable:
Swapped	83,915		4.7	%	144,282		2.2	%	—		—	%	228,197		3.6	%	3.1	%	3.6
Floating	—		—	%	56,171		1.3	%	16,883		2.7	%	73,054		1.2	%	1.6	%	2.7
Capped	—		—	%	12,793		1.6	%	—		—	%	12,793		0.2	%	1.6	%	3.6
Total Pro Rata Non-Recourse Debt	1,219,808		5.1	%	396,629		2.7	%	46,856		4.0	%	1,663,293		26.4	%	4.5	%	3.2

Recourse Debt ^{(b) (c)}
Fixed – Senior unsecured notes:
Due January 20, 2023	—		—	%	561,700		2.0	%	—		—	%	561,700		8.9	%	2.0	%	3.1
Due April 1, 2024	500,000		4.6	%	—		—	%	—		—	%	500,000		7.9	%	4.6	%	4.3
Due July 19, 2024	—		—	%	561,700		2.3	%	—		—	%	561,700		8.9	%	2.3	%	4.6
Due February 1, 2025	450,000		4.0	%	—		—	%	—		—	%	450,000		7.2	%	4.0	%	5.1
Due April 9, 2026	—		—	%	561,700		2.3	%	—		—	%	561,700		8.9	%	2.3	%	6.3
Due October 1, 2026	350,000		4.3	%	—		—	%	—		—	%	350,000		5.6	%	4.3	%	6.8
Due April 15, 2027	—		—	%	561,700		2.1	%	—		—	%	561,700		8.9	%	2.1	%	7.3
Due April 15, 2028	—		—	%	561,700		1.4	%	—		—	%	561,700		8.9	%	1.4	%	8.3
Due July 15, 2029	325,000		3.9	%	—		—	%	—		—	%	325,000		5.2	%	3.9	%	9.5
Total Senior Unsecured Notes	1,625,000		4.2	%	2,808,500		2.0	%	—		—	%	4,433,500		70.4	%	2.8	%	6.0
Variable:
Unsecured revolving credit facility (due February 22, 2021) ^(d)	—		—	%	131,438		1.0	%	69,829		1.5	%	201,267		3.2	%	1.2	%	1.1
Total Recourse Debt	1,625,000		4.2	%	2,939,938		2.0	%	69,829		1.5	%	4,634,767		73.6	%	2.8	%	5.8

Total Pro Rata Debt Outstanding	$	2,844,808	4.6	%	$	3,336,567	2.1	%	$	116,685	2.5	%	$	6,298,060	100.0	%	3.2	%	5.1

________


(a)	Other currencies include debt denominated in British pound sterling, Norwegian krone and Japanese yen.


(b)	Debt data is presented on a pro rata basis. See the Terms and Definitions section in the Appendix for a description of pro rata.


(c)	Excludes unamortized discount, net totaling $26.8 million and unamortized deferred financing costs totaling $23.6 million as of December 31, 2019.

(d)

Depending on the currency, we incurred interest at either London Interbank Offered Rate (“LIBOR”), Euro Interbank Offered Rate (“EURIBOR”), or Japanese yen (“JPY”) LIBOR plus 1.00% on our Unsecured revolving credit facility. EURIBOR and JPY LIBOR have a floor of 0.00% under the terms of our credit agreement. Availability under our Unsecured revolving credit facility was $1.3 billion as of December 31, 2019. On February 20, 2020, we amended and restated our existing $1.85 billion unsecured credit facility to be comprised of a $1.8 billion revolving credit facility, a £150.0 million term loan and a $105.0 million delayed draw term loan, all maturing in five years. The aggregate principal amount (of revolving and term loans) available under our amended credit agreement may be increased up to an amount not to exceed the U.S. dollar equivalent of $2.75 billion.



		Investing for the long run^TM \| 18

W. P. Carey Inc.

Balance Sheets and Capitalization – Fourth Quarter 2019



Debt Maturity

Dollars in thousands. Pro rata. As of December 31, 2019.



	Real Estate			Debt
	Number of Properties ^(a)			Weighted- Average Interest Rate				Total Outstanding Balance ^{(b) (c)}		% of Total Outstanding Balance
Year of Maturity	Number of Properties ^(a)	ABR ^(a)		Weighted- Average Interest Rate		Balloon		Total Outstanding Balance ^{(b) (c)}		% of Total Outstanding Balance
Non-Recourse Debt
2020	11	$	17,224	4.9	%	$	119,911	$	124,506	2.0	%
2021	53	46,156		5.0	%	245,045		253,718		4.0	%
2022	37	79,005		4.8	%	418,370		446,047		7.1	%
2023	39	72,862		3.6	%	348,185		393,429		6.2	%
2024	48	44,730		4.0	%	178,896		227,544		3.6	%
2025	17	21,021		4.7	%	86,727		120,219		1.9	%
2026	9	12,413		6.1	%	31,535		53,576		0.8	%
2027	2	4,094		4.7	%	21,450		30,401		0.5	%
2028	1	3,042		7.0	%	—		10,235		0.2	%
2031	1	938		6.0	%	—		3,618		0.1	%
Total Pro Rata Non-Recourse Debt	218	$	301,485	4.5	%	$	1,450,119	1,663,293		26.4	%

Recourse Debt
Fixed – Senior unsecured notes:
Due January 20, 2023 (EUR)				2.0	%			561,700		8.9	%
Due April 1, 2024 (USD)				4.6	%			500,000		7.9	%
Due July 19, 2024 (EUR)				2.3	%			561,700		8.9	%
Due February 1, 2025 (USD)				4.0	%			450,000		7.2	%
Due April 9, 2026 (EUR)				2.3	%			561,700		8.9	%
Due October 1, 2026 (USD)				4.3	%			350,000		5.6	%
Due April 15, 2027 (EUR)				2.1	%			561,700		8.9	%
Due April 15, 2028 (EUR)				1.4	%			561,700		8.9	%
Due July 15, 2029 (USD)				3.9	%			325,000		5.2	%
Total Senior Unsecured Notes				2.8	%			4,433,500		70.4	%
Variable:
Unsecured revolving credit facility (due February 22, 2021) ^(d)				1.2	%			201,267		3.2	%
Total Recourse Debt				2.8	%			4,634,767		73.6	%

Total Pro Rata Debt Outstanding				3.2	%			$	6,298,060	100.0	%

________


(a)	Represents the number of properties and ABR associated with the debt that is maturing in each respective year.


(b)	Debt maturity data is presented on a pro rata basis. See the Terms and Definitions section in the Appendix for a description of pro rata. Total outstanding balance includes balloon payments and scheduled amortization for our non-recourse debt.


(c)	Excludes unamortized discount, net totaling $26.8 million and unamortized deferred financing costs totaling $23.6 million as of December 31, 2019.

(d)

Depending on the currency, we incurred interest at either LIBOR, EURIBOR, or JPY LIBOR plus 1.00% on our Unsecured revolving credit facility. EURIBOR and JPY LIBOR have a floor of 0.00% under the terms of our credit agreement. Availability under our Unsecured revolving credit facility was $1.3 billion as of December 31, 2019. On February 20, 2020, we amended and restated our existing $1.85 billion unsecured credit facility to be comprised of a $1.8 billion revolving credit facility, a £150.0 million term loan and a $105.0 million delayed draw term loan, all maturing in five years. The aggregate principal amount (of revolving and term loans) available under our amended credit agreement may be increased up to an amount not to exceed the U.S. dollar equivalent of $2.75 billion.



		Investing for the long run^TM \| 19

W. P. Carey Inc.

Balance Sheets and Capitalization – Fourth Quarter 2019



Senior Unsecured Notes

As of December 31, 2019.

Ratings



	Issuer / Corporate		Senior Unsecured Notes
Ratings Agency	Rating	Outlook	Rating
Moody's	Baa2	Stable	Baa2
Standard & Poor's	BBB	Positive	BBB

Senior Unsecured Note Covenants

The following is a summary of the key financial covenants for the Senior Unsecured Notes, along with our estimated calculations of our compliance with those covenants at the end of the period presented. These ratios are not measures of our liquidity or performance and serve only to demonstrate our ability to incur additional debt, as permitted by the covenants for the Senior Unsecured Notes.



Covenant	Metric	Required	As of Dec. 31, 2019
Limitation on the incurrence of debt	"Total Debt" / "Total Assets"	≤ 60%	40.0%
Limitation on the incurrence of secured debt	"Secured Debt" / "Total Assets"	≤ 40%	9.6%
Limitation on the incurrence of debt based on consolidated EBITDA to annual debt service charge	"Consolidated EBITDA" / "Annual Debt Service Charge"	≥ 1.5x	5.3x
Maintenance of unencumbered asset value	"Unencumbered Assets" / "Total Unsecured Debt"	≥ 150%	242.9%



		Investing for the long run^TM \| 20

W. P. Carey Inc.

Real Estate

Fourth Quarter 2019



		Investing for the long run^TM \| 21

W. P. Carey Inc.

Real Estate – Fourth Quarter 2019



Investment Activity – Capital Investment Projects ^(a)

Dollars in thousands. Pro rata.



		Primary Transaction Type	Property Type	Expected Completion Date	Estimated Change in Square Footage	Lease Term (Years)	Funded During Three Months Ended Dec. 31, 2019		Total Funded Through Dec. 31, 2019		Maximum Commitment
Tenant	Location	Primary Transaction Type	Property Type	Expected Completion Date	Estimated Change in Square Footage	Lease Term (Years)	Funded During Three Months Ended Dec. 31, 2019		Total Funded Through Dec. 31, 2019		Remaining		Total
Danske Fragtmænd A/S ^{(b) (c)}	Hillerod, Denmark	Build-to-Suit	Warehouse	Q1 2020	53,282	20	$	—	$	—	$	9,182	$	9,182
Danske Fragtmænd A/S ^{(b) (d)}	Hammelev, Denmark	Build-to-Suit	Warehouse	Q1 2020	88,620	20	—		—		10,714		10,714
Clayco, Inc. ^{(e) (f)}	St. Louis, MO	Renovation	Office	Q1 2020	N/A	15	3,315		3,315		685		4,000
Astellas US Holding, Inc. ^{(e) (f) (g)}	Westborough, MA	Redevelopment	Laboratory	Q1 2020	10,063	17	3,136		43,184		8,493		51,677
Fresenius Medical Care Holdings, Inc. ^(c)	Knoxville, TN	Build-to-Suit	Warehouse	Q2 2020	614,069	20	—		—		68,008		68,008
Hilite Europe GmbH ^(b)	Marktheidenfeld, Germany	Expansion	Warehouse	Q2 2020	71,710	15	1,479		1,479		6,813		8,292
Hellweg Die Profi-Baumärkte GmbH & Co. KG^{(b) (e)}	Various, Germany	Renovation	Retail	Q3 2020	N/A	17	—		10,510		2,184		12,694
Boot Barn Holdings, Inc.	Wichita, KS	Expansion	Warehouse	Q3 2020	43,248	15	—		—		3,000		3,000
Cuisine Solutions, Inc.	San Antonio, TX	Build-to-Suit	Industrial	Q4 2020	310,000	25	—		12,913		62,087		75,000
Expected Completion Date 2020 Total					1,190,992		7,930		71,401		171,166		242,567

American Axle & Manufacturing, Inc. ^(b)	Langen, Germany	Build-to-Suit	Industrial	Q1 2021	168,000	20	7,380		7,380		48,790		56,170
Stress Engineering Services, Inc.	Mason, OH	Expansion	Office	Q2 2021	6,810	20	—		—		2,500		2,500
Henkel AG & Co.	Bowling Green, KY	Renovation	Warehouse	Q4 2021	N/A	15	23,563		23,563		46,437		70,000
Expected Completion Date 2021 Total					174,810		30,943		30,943		97,727		128,670

					1,365,802		$	38,873	$	102,344	$	268,893	$	371,237

________


(a)	This schedule includes future estimates for which we can give no assurance as to timing or amounts. Completed capital investment projects are included in the Investment Activity – Acquisitions and Completed Capital Investment Projects section. Funding amounts exclude capitalized construction interest.


(b)	Commitment amounts are based on the applicable exchange rate at period end.


(c)	Projects will be funded upon completion and are contingent on buildings being constructed according to our standards.


(d)	Project was funded upon completion in January 2020.


(e)	We started receiving full or partial rent for these projects prior to December 31, 2019.


(f)	Projects were completed in January 2020.


(g)	This redevelopment project also includes renovations to the existing 250,813 square foot property.



		Investing for the long run^TM \| 22

W. P. Carey Inc.

Real Estate – Fourth Quarter 2019



Investment Activity – Acquisitions and Completed Capital Investment Projects

Dollars in thousands. Pro rata. For the year ended December 31, 2019.

Gross Investment Amount

Closing Date / Asset Completion Date

Property

Type(s)

Gross Square Footage

Tenant / Lease Guarantor

Property Location(s)

Acquisitions

1Q19

University of Western States

Portland, OR

36,178

Feb-19

Education Facility

152,642

PPD Development, L.P.

Morrisville, NC

48,305

Mar-19

Office

219,812

Orgill, Inc.

Inwood, WV

37,565

Mar-19

Warehouse

763,371

Litehouse, Inc.

Hurricane, UT

49,283

Mar-19

Industrial

268,009

Amerifreight Systems, LLC

Bensenville, IL

16,642

Mar-19

Industrial

58,000

1Q19 Total

187,973

1,461,834

2Q19

Integrated Warehouse Solutions (2 properties)

Westerville, OH and North Wales, PA

10,237

May-19

Industrial

143,092

Electrical Components International, Inc. (8 properties) ^(a)

United States (5 properties) and Mexico (3 properties)

24,487

May-19

Industrial

525,484

Badger Sportswear, LLC

Statesville, NC

18,755

Jun-19

Warehouse

300,910

Turkey Hill, LLC

Conestoga, PA

70,057

Jun-19

Industrial

412,428

2Q19 Total

123,536

1,381,914

3Q19

Wendorff (3 properties)

Hartford and Milwaukee, WI

30,132

Jul-19

Industrial

618,500

Trillium Holdings, Inc. (2 properties) ^(a)

Brockville and Prescott, Canada

15,128

Jul-19

Industrial

286,000

Selecta Group B.V. ^(b)

Dordrecht, The Netherlands

16,429

Sep-19

Industrial

203,072

3Q19 Total

61,689

1,107,572

4Q19

Apex Tool Group, LLC (3 properties) ^(a)

York, PA; Lexington, SC; and Queretaro, Mexico

53,244

Oct-19

Industrial

990,292

Carhartt, Inc.

Dearborn, MI

9,932

Oct-19

Office

58,722

Stress Engineering Services, Inc. (6 properties) ^(c)

Houston, TX (4 properties); Metairie, LA; and Mason, OH

39,108

Nov-19

Office and Industrial

196,371

Faurecia S.A. ^(b)

Pardubice, Czech Republic

12,218

Nov-19

Industrial

177,132

Stark Group A/S (2 properties) ^(b)

Brabrand, Denmark and Arlandastad, Sweden

37,978

Nov-19

Warehouse

495,585

Lakeshore Recycling Systems (3 properties)

Cortland, IL; and Madison and Monona, WI

1,831

Dec-19

Industrial

15,040

Bass Pro Group LLC

Hamburg, PA

55,878

Dec-19

Retail

243,217

Stanley Black & Decker, Inc.

Charlotte, NC ^(d)

94,137

Dec-19

Warehouse

1,226,000

Safco Dental Supply LLC

Buffalo Grove, IL

16,842

Dec-19

Warehouse

161,976

MAN Truck & Bus ^(b)

Hvidovre, Denmark

7,805

Dec-19

Industrial

30,010

Poundstretcher Ltd. ^(b)

Huddersfield, United Kingdom

38,854

Dec-19

Warehouse

385,481

4Q19 Total

367,827

3,979,826

Year-to-Date Total

741,025

7,931,146



		Investing for the long run^TM \| 23

W. P. Carey Inc.

Real Estate – Fourth Quarter 2019



Investment Activity – Acquisitions and Completed Capital Investment Projects (continued)

Dollars in thousands. Pro rata. For the year ended December 31, 2019.

Gross Investment Amount

Closing Date / Asset Completion Date

Property

Type(s)

Gross Square Footage

Tenant / Lease Guarantor

Property Location(s)

Completed Capital Investment Projects

1Q19

Greenyard Foods NV ^{(b) (e)}

Zabia Wola, Poland

5,580

Mar-19

Warehouse

72,154

Harbor Freight Tools USA, Inc. ^(e)

Dillon, SC

46,023

Mar-19

Warehouse

1,000,000

1Q19 Total

51,603

1,072,154

2Q19

Nippon Express Co., Ltd. ^(b)

Rotterdam, The Netherlands

20,051

May-19

Warehouse

353,368

Hellweg Die Profi-Baumärkte GmbH & Co. KG (4 properties) ^(b)

Various, Germany

5,582

May-19

Retail

N/A

Faurecia Legnica S. A. ^(b)

Legnica, Poland

6,000

Jun-19

Industrial

72,119

2Q19 Total

31,633

425,487

3Q19 (N/A)

4Q19

Orgill, Inc.

Kilgore, TX

14,008

Oct-19

Warehouse

328,707

Rockwell Automation ^(b)

Katowice, Poland

16,365

Nov-19

Industrial

121,320

Gestamp Automocion, S.L.

McCalla, AL

13,500

Dec-19

Industrial

137,620

43,873

587,647

Year-to-Date Total

127,109

2,085,288

Year-to-Date Total Acquisitions and Completed Capital Investment Projects

868,134

10,016,434

________


(a)	Purchase price for international properties is denominated in U.S. dollars.


(b)	Amount reflects the applicable exchange rate on the date of the transaction.


(c)	We also committed to fund an additional $2.5 million for an expansion at the facility in Mason, Ohio, which is expected to be completed in the second quarter of 2021.


(d)	Property is located on the border of Charlotte, North Carolina, and Fort Mill, South Carolina.


(e)	These capital investment projects were acquired in the CPA:17 Merger on October 31, 2018. The gross investment amount includes amounts funded prior to the completion of the CPA:17 Merger.



		Investing for the long run^TM \| 24

W. P. Carey Inc.

Real Estate – Fourth Quarter 2019



Investment Activity – Dispositions

Dollars in thousands. Pro rata. For the year ended December 31, 2019.

Tenant / Lease Guarantor

Property Location(s)

Gross Sale Price

Closing Date

Property

Type(s)

Gross Square Footage

1Q19

Walgreens Co.

Concord, NC

4,961

Jan-19

Retail

14,560

1Q19 Total

4,961

14,560

2Q19

Civitas Media, LLC (4 properties)

Sedalia, MO; Lumberton and Mount Airy, NC; and Wilkes-Barre, PA

7,669

Apr-19

Industrial

144,918

Production Resource Group, Inc.

Las Vegas, NV

9,285

Jun-19

Warehouse

126,916

2Q19 Total

16,954

271,834

3Q19

Vacant

Rocky Mount, NC

3,225

Jul-19

Industrial

190,820

Vacant

Johnstown, PA

500

Aug-19

Retail

80,884

Vacant ^(a)

Slavonski Brod, Croatia

2,407

Aug-19

Retail

58,147

JGC Food Co., LLC

Nashville, TN

8,000

Sep-19

Industrial

184,727

3Q19 Total

14,132

514,578

4Q19

Qwest Corporation

Scottsdale, AZ

2,500

Oct-19

Industrial

4,460

Vacant (6 properties) ^(b)

Various, Midwest United States

56,410

Oct-19

Retail

1,002,731

The New York Times Company

New York City, NY

245,339

Dec-19

Office

712,228

Vacant ^(b)

Eagan, MN

8,653

Dec-19

Education Facility

88,165

Hellweg Die Profi-Baumärkte GmbH & Co. KG (2 properties) ^(a)

Essen Borbeck and Geltow, Germany

31,007

Dec-19

Retail

200,662

Fraikin SAS ^(a)

Gennevilliers, France

3,924

Dec-19

Industrial

70,277

4Q19 Total

347,833

2,078,523

Year-to-Date Total Dispositions

383,880

2,879,495

________


(a)	Amount reflects the applicable exchange rate on the date of the transaction.


(b)	We transferred ownership of these properties and the related non-recourse mortgage loans to the respective mortgage lenders. Amounts represent the outstanding principal balance of the mortgage loans on dates of foreclosure.



		Investing for the long run^TM \| 25

W. P. Carey Inc.

Real Estate – Fourth Quarter 2019



Joint Ventures

Dollars in thousands. As of December 31, 2019.



Joint Venture or JV (Principal Tenant)	JV Partnership		Consolidated				Pro Rata ^(a)
Joint Venture or JV (Principal Tenant)	Partner	WPC %	Debt Outstanding ^(b)		ABR		Debt Outstanding ^(c)		ABR
Unconsolidated Joint Ventures (Equity Method Investments) ^(d)
Kesko Senukai ^(e)	Third party	70.00%	$	119,033	$	13,889	$	83,323	$	9,722
State Farm Mutual Automobile Insurance Co.	CPA:18 – Global	50.00%	72,800		7,836		36,400		3,918
Bank Pekao ^(e)	CPA:18 – Global	50.00%	55,357		8,897		27,679		4,448
Apply Sørco AS ^(e)	CPA:18 – Global	49.00%	40,773		4,170		19,979		2,044
Fortenova Grupa d.d. (formerly Konzum d.d.) ^(e)	CPA:18 – Global	20.00%	26,200		4,128		5,240		826
Total Unconsolidated Joint Ventures			314,163		38,920		172,621		20,958

Consolidated Joint Ventures ^(f)
McCoy-Rockford, Inc.	Third party	90.00%	—		886		—		798
Total Consolidated Joint Ventures			—		886		—		798
Total Unconsolidated and Consolidated Joint Ventures			$	314,163	$	39,806	$	172,621	$	21,756

________


(a)	See the Terms and Definitions section in the Appendix for a description of pro rata.


(b)	Excludes unamortized deferred financing costs totaling $0.4 million and unamortized discount, net totaling $0.2 million as of December 31, 2019.


(c)	Excludes unamortized deferred financing costs totaling $0.2 million and unamortized discount, net totaling $0.1 million as of December 31, 2019.


(d)	Excludes a 90.00% equity position in a jointly owned investment, Johnson Self Storage (comprised of nine self-storage operating properties), which did not have debt outstanding as of December 31, 2019. Excludes a 15.00% common equity interest in a jointly owned investment, BPS Nevada, LLC.


(e)	Amounts are based on the applicable exchange rate at the end of the period.


(f)	Excludes a jointly owned investment, Shelborne Hotel, which we consolidate with a 95.45% ownership interest and which did not have debt outstanding as of December 31, 2019. Shelborne Hotel was classified as held for sale as of December 31, 2019 and was sold in January 2020.



		Investing for the long run^TM \| 26

W. P. Carey Inc.

Real Estate – Fourth Quarter 2019



Top Ten Tenants

Dollars in thousands. Pro rata. As of December 31, 2019.



Tenant / Lease Guarantor	Description	Number of Properties	ABR		ABR %		Weighted-Average Lease Term (Years)
U-Haul Moving Partners Inc. and Mercury Partners, LP	Net lease self-storage properties in the U.S.	78	$	38,751	3.5	%	4.3
Hellweg Die Profi-Baumärkte GmbH & Co. KG ^(a)	Do-it-yourself retail properties in Germany	42	33,338		3.0	%	17.2
State of Andalucía ^(a)	Government office properties in Spain	70	28,393		2.5	%	15.0
Metro Cash & Carry Italia S.p.A. ^(a)	Business-to-business wholesale stores in Italy and Germany	20	27,119		2.4	%	7.3
Pendragon PLC ^(a)	Automotive dealerships in the United Kingdom	69	22,449		2.0	%	10.4
Marriott Corporation	Net lease hotel properties in the U.S.	18	20,065		1.8	%	3.9
Extra Space Storage, Inc.	Net lease self-storage properties in the U.S.	27	19,519		1.7	%	24.3
Nord Anglia Education, Inc.	K-12 private schools in the U.S.	3	18,734		1.7	%	23.7
Forterra, Inc. ^{(a) (b)}	Industrial properties in the U.S. and Canada	27	18,394		1.7	%	23.5
Advance Auto Parts, Inc.	Distribution facilities in the U.S.	30	18,345		1.6	%	13.1
Total^(c)		384	$	245,107	21.9	%	13.3

________


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


(b)	Of the 27 properties leased to Forterra, Inc., 25 are located in the United States and two are located in Canada.


(c)	See the Terms and Definitions section in the Appendix for a description of pro rata.



		Investing for the long run^TM \| 27

W. P. Carey Inc.

Real Estate – Fourth Quarter 2019



Diversification by Property Type

In thousands, except percentages. Pro rata. As of December 31, 2019.



	Total Net-Lease Portfolio
Property Type	ABR		ABR %		Square Footage ^(a)	Sq. ft. %
U.S.
Industrial	$	197,481	17.7	%	37,408	26.7	%
Office	163,271		14.6	%	10,623	7.6	%
Warehouse	141,153		12.6	%	30,170	21.6	%
Retail ^(b)	48,970		4.3	%	3,015	2.1	%
Self Storage (net lease)	58,270		5.2	%	5,810	4.1	%
Other^(c)	101,400		9.1	%	5,557	4.0	%
U.S. Total	710,545		63.5	%	92,583	66.1	%

International
Industrial	70,953		6.3	%	10,588	7.6	%
Office	88,248		7.9	%	6,271	4.5	%
Warehouse	99,047		8.9	%	15,999	11.4	%
Retail ^(b)	149,716		13.4	%	14,541	10.4	%
Self Storage (net lease)	—		—	%	—	—	%
Other^(c)	10		—	%	—	—	%
International Total	407,974		36.5	%	47,399	33.9	%

Total
Industrial	268,434		24.0	%	47,996	34.3	%
Office	251,519		22.5	%	16,894	12.1	%
Warehouse	240,200		21.5	%	46,169	33.0	%
Retail ^(b)	198,686		17.7	%	17,556	12.5	%
Self Storage (net lease)	58,270		5.2	%	5,810	4.1	%
Other^(c)	101,410		9.1	%	5,557	4.0	%
Total ^(d)	$	1,118,519	100.0	%	139,982	100.0	%

________


(a)	Includes square footage for vacant properties.


(b)	Includes automotive dealerships.


(c)	Includes ABR from tenants with the following property types: education facility, hotel (net lease), fitness facility, laboratory, theater and student housing (net lease).


(d)	See the Terms and Definitions section in the Appendix for a description of pro rata.



		Investing for the long run^TM \| 28

W. P. Carey Inc.

Real Estate – Fourth Quarter 2019



Diversification by Tenant Industry

In thousands, except percentages. Pro rata. As of December 31, 2019.



	Total Net-Lease Portfolio
Industry Type	ABR		ABR %		Square Footage	Sq. ft. %
Retail Stores ^(a)	$	233,346	20.9	%	30,993	22.1	%
Consumer Services	113,588		10.1	%	8,429	6.0	%
Automotive	72,679		6.5	%	12,166	8.7	%
Cargo Transportation	60,211		5.4	%	9,345	6.7	%
Business Services	60,073		5.4	%	5,272	3.8	%
Grocery	56,574		5.1	%	6,549	4.7	%
Healthcare and Pharmaceuticals	51,010		4.6	%	4,281	3.1	%
Hotel, Gaming, and Leisure	43,663		3.9	%	2,423	1.7	%
Construction and Building	42,290		3.8	%	7,673	5.5	%
Capital Equipment	39,686		3.5	%	6,550	4.7	%
Sovereign and Public Finance	39,259		3.5	%	3,364	2.4	%
Beverage, Food, and Tobacco	37,825		3.4	%	4,862	3.5	%
Containers, Packaging, and Glass	35,718		3.2	%	6,186	4.4	%
High Tech Industries	30,444		2.7	%	3,384	2.4	%
Durable Consumer Goods	30,214		2.7	%	6,870	4.9	%
Insurance	24,875		2.2	%	1,759	1.3	%
Banking	19,239		1.7	%	1,247	0.9	%
Telecommunications	18,803		1.7	%	1,732	1.2	%
Non-Durable Consumer Goods	15,088		1.3	%	5,194	3.7	%
Media: Advertising, Printing, and Publishing	14,785		1.3	%	1,435	1.0	%
Aerospace and Defense	13,539		1.2	%	1,279	0.9	%
Media: Broadcasting and Subscription	12,787		1.1	%	784	0.6	%
Wholesale	12,206		1.1	%	2,005	1.4	%
Chemicals, Plastics, and Rubber	12,037		1.1	%	1,403	1.0	%
Other ^(b)	28,580		2.6	%	4,797	3.4	%
Total ^(c)	$	1,118,519	100.0	%	139,982	100.0	%

________


(a)	Includes automotive dealerships.


(b)	Includes ABR from tenants in the following industries: metals and mining, oil and gas, environmental industries, electricity, consumer transportation, forest products and paper, real estate and finance. Also includes square footage for vacant properties.


(c)	See the Terms and Definitions section in the Appendix for a description of pro rata.



		Investing for the long run^TM \| 29

W. P. Carey Inc.

Real Estate – Fourth Quarter 2019



Diversification by Geography

In thousands, except percentages. Pro rata. As of December 31, 2019.



	Total Net-Lease Portfolio
Region	ABR		ABR %		Square Footage ^(a)	Sq. ft. %
U.S.
South
Texas	$	99,611	8.9	%	11,411	8.2	%
Florida	47,079		4.2	%	4,060	2.9	%
Georgia	28,197		2.5	%	4,024	2.9	%
Tennessee	15,721		1.4	%	2,260	1.6	%
Alabama	15,273		1.4	%	2,397	1.7	%
Other ^(b)	12,622		1.1	%	2,263	1.6	%
Total South	218,503		19.5	%	26,415	18.9	%
East
North Carolina	32,648		2.9	%	8,052	5.7	%
Pennsylvania	25,079		2.3	%	3,609	2.6	%
Massachusetts	21,395		1.9	%	1,397	1.0	%
New Jersey	19,330		1.7	%	1,100	0.8	%
South Carolina	15,570		1.4	%	4,437	3.2	%
Virginia	13,449		1.2	%	1,430	1.0	%
New York	12,919		1.2	%	1,392	1.0	%
Kentucky	11,220		1.0	%	3,063	2.2	%
Other ^(b)	22,818		2.0	%	3,531	2.5	%
Total East	174,428		15.6	%	28,011	20.0	%
Midwest
Illinois	51,385		4.6	%	5,974	4.3	%
Minnesota	25,652		2.3	%	2,362	1.7	%
Indiana	18,002		1.6	%	2,827	2.0	%
Wisconsin	15,874		1.4	%	2,984	2.1	%
Ohio	15,125		1.4	%	3,153	2.2	%
Michigan	13,898		1.2	%	2,132	1.5	%
Other ^(b)	27,471		2.5	%	4,697	3.4	%
Total Midwest	167,407		15.0	%	24,129	17.2	%
West
California	60,393		5.4	%	5,162	3.7	%
Arizona	33,826		3.0	%	3,648	2.6	%
Colorado	11,413		1.0	%	1,008	0.7	%
Other ^(b)	44,575		4.0	%	4,210	3.0	%
Total West	150,207		13.4	%	14,028	10.0	%
U.S. Total	710,545		63.5	%	92,583	66.1	%
International
Germany	62,653		5.6	%	6,769	4.8	%
Poland	52,066		4.6	%	7,215	5.1	%
The Netherlands	50,698		4.5	%	6,862	4.9	%
Spain	49,089		4.4	%	4,226	3.0	%
United Kingdom	42,592		3.8	%	3,309	2.4	%
Italy	25,513		2.3	%	2,386	1.7	%
Croatia	16,513		1.5	%	1,794	1.3	%
Denmark	13,991		1.3	%	2,320	1.7	%
France	13,336		1.2	%	1,359	1.0	%
Canada	12,867		1.2	%	2,103	1.5	%
Finland	11,376		1.0	%	949	0.7	%
Other^(c)	57,280		5.1	%	8,107	5.8	%
International Total	407,974		36.5	%	47,399	33.9	%
Total^(d)	$	1,118,519	100.0	%	139,982	100.0	%

________


(a)	Includes square footage for vacant properties.

(b)

Other properties within South include assets in Louisiana, Oklahoma, Arkansas and Mississippi. Other properties within East include assets in Maryland, Connecticut, West Virginia, New Hampshire and Maine. Other properties within Midwest include assets in Missouri, Kansas, Nebraska, Iowa, North Dakota and South Dakota. Other properties within West include assets in Utah, Nevada, Oregon, Washington, Hawaii, New Mexico, Wyoming, Montana and Alaska.


(c)	Includes assets in Lithuania, Norway, Mexico, Hungary, the Czech Republic, Austria, Portugal, Sweden, Japan, Slovakia, Latvia, Belgium and Estonia.


(d)	See the Terms and Definitions section in the Appendix for a description of pro rata.



		Investing for the long run^TM \| 30

W. P. Carey Inc.

Real Estate – Fourth Quarter 2019



Contractual Rent Increases

In thousands, except percentages. Pro rata. As of December 31, 2019.



	Total Net-Lease Portfolio
Rent Adjustment Measure	ABR		ABR %		Square Footage	Sq. ft. %
(Uncapped) CPI	$	432,469	38.7	%	50,651	36.2	%
Fixed	358,058		32.0	%	50,330	35.9	%
CPI-based	267,915		23.9	%	33,149	23.7	%
Other ^(a)	51,442		4.6	%	3,679	2.6	%
None	8,635		0.8	%	543	0.4	%
Vacant	—		—	%	1,630	1.2	%
Total ^(b)	$	1,118,519	100.0	%	139,982	100.0	%

________


(a)	Represents leases attributable to percentage rent.


(b)	See the Terms and Definitions section in the Appendix for a description of pro rata.



		Investing for the long run^TM \| 31

W. P. Carey Inc.

Real Estate – Fourth Quarter 2019



Same Store Analysis

Dollars in thousands. Pro rata.

Same store portfolio includes leases that were continuously in place during the period from December 31, 2018 to December 31, 2019. Excludes leases for properties that were acquired, sold or vacated, or were subject to lease renewals, extensions or modifications at any time that affected ABR during that period. For purposes of comparability, ABR is presented on a constant currency basis using exchange rates as of December 31, 2019.



	ABR
Property Type	As of Dec. 31, 2019		As of Dec. 31, 2018		Increase		% Increase
Office	$	234,696	$	230,477	$	4,219	1.8	%
Industrial	226,918		222,388		4,530		2.0	%
Warehouse	195,312		192,338		2,974		1.5	%
Retail ^(a)	177,340		174,655		2,685		1.5	%
Self Storage (net lease)	38,751		36,008		2,743		7.6	%
Other ^(b)	96,118		94,647		1,471		1.6	%
Total	$	969,135	$	950,513	$	18,622	2.0	%

Rent Adjustment Measure
(Uncapped) CPI	$	384,656	$	375,964	8,692		2.3	%
Fixed	295,693		290,940		4,753		1.6	%
CPI-based	252,277		247,115		5,162		2.1	%
Other ^(c)	29,941		29,927		14		—	%
None	6,568		6,567		1		—	%
Total	$	969,135	$	950,513	$	18,622	2.0	%

Geography
U.S.	$	606,428	$	594,300	12,128		2.0	%
Europe	343,325		337,177		6,148		1.8	%
Other International ^(d)	19,382		19,036		346		1.8	%
Total	$	969,135	$	950,513	$	18,622	2.0	%

Same Store Portfolio Summary
Number of properties	1,077
Square footage (in thousands)	114,523

________


(a)	Includes automotive dealerships.


(b)	Includes ABR from tenants with the following property types: education facility, hotel (net lease), theater, fitness facility and student housing (net lease).


(c)	Represents leases attributable to percentage rent.


(d)	Includes assets in Canada, Mexico and Japan.



		Investing for the long run^TM \| 32

W. P. Carey Inc.

Real Estate – Fourth Quarter 2019



Leasing Activity

For the three months ended December 31, 2019, except ABR. Pro rata.



Lease Renewals and Extensions ^(a)										Expected Tenant Improvements ($000s)		Leasing Commissions ($000s)
			ABR
Property Type	Square Feet	Number of Leases	Prior Lease ($000s)			New Lease ($000s) ^(b)		Releasing Spread						Incremental Lease Term
Industrial	3,092,922	4	$	9,947		$	7,232	(27.3	)%	$	—	$	—	4.6 years
Office	21,364	3	377			456		21.0	%	—		—		7.3 years
Warehouse	2,396,035	5	9,822			10,041		2.2	%	1,160		1,148		8.8 years
Retail	173,446	2	841			841		0.1	%	—		—		8.0 years
Self Storage (net lease)	—	—	—			—		—	%	—		—		N/A
Other	36,851	1	823			823		—	%	—		—		5.0 years
Total / Weighted Average ^(c)	5,720,618	15	$	21,810		$	19,393	(11.1	)%	$	1,160	$	1,148	7.0 years

Q4 Summary
Prior Lease ABR (% of Total Portfolio)			2.0		%



New Leases					Expected Tenant Improvements ($000s)		Leasing Commissions ($000s)
			ABR
Property Type	Square Feet	Number of Leases	New Lease ($000s) ^(b)						New Lease Term
Industrial	341,425	1	$	1,597	$	3,300	$	735	18.9 years
Office	—	—	—		—		—		N/A
Warehouse ^(d)	—	1	222		—		—		16.0 years
Retail	46,397	9	625		—		1		11.0 years
Self Storage (net lease)	—	—	—		—		—		N/A
Other	—	—	—		—		—		N/A
Total / Weighted Average ^(e)	387,822	11	$	2,444	$	3,300	$	736	16.6 years

_______


(a)	Excludes lease extensions for a period of one year or less.


(b)	New lease amounts are based on in-place rents at time of lease commencement and exclude any free rent periods.


(c)	Weighted average refers to the incremental lease term.


(d)	Reflects lease of 1,013,580 square feet of roof space for the installation of solar panels.


(e)	Weighted average refers to the new lease term.



		Investing for the long run^TM \| 33

W. P. Carey Inc.

Real Estate – Fourth Quarter 2019



Lease Expirations

In thousands, except percentages and number of leases. Pro rata. As of December 31, 2019.



Year of Lease Expiration^(a)	Number of Leases Expiring	Number of Tenants with Leases Expiring	ABR		ABR %		Square Footage	Sq. ft. %
2020	25	22	$	19,294	1.7	%	2,050	1.5	%
2021	77	23	33,967		3.0	%	3,899	2.8	%
2022	41	32	58,261		5.2	%	5,377	3.8	%
2023	31	28	46,954		4.2	%	5,919	4.2	%
2024	76	49	111,646		10.0	%	13,961	10.0	%
2025	61	30	58,023		5.2	%	7,194	5.1	%
2026	32	20	49,824		4.5	%	7,354	5.2	%
2027	45	27	71,604		6.4	%	8,237	5.9	%
2028	43	25	61,774		5.5	%	4,867	3.5	%
2029	31	18	36,289		3.2	%	4,561	3.3	%
2030	28	22	73,580		6.6	%	6,638	4.7	%
2031	66	16	68,973		6.2	%	8,155	5.8	%
2032	35	14	43,105		3.9	%	5,914	4.2	%
2033	19	13	48,275		4.3	%	6,672	4.8	%
Thereafter (>2033)	172	84	336,950		30.1	%	47,554	34.0	%
Vacant	—	—	—		—	%	1,630	1.2	%
Total^(b)	782		$	1,118,519	100.0	%	139,982	100.0	%

________


(a)	Assumes tenants do not exercise any renewal options or purchase options.


(b)	See the Terms and Definitions section in the Appendix for a description of pro rata.



		Investing for the long run^TM \| 34

W. P. Carey Inc.

Investment Management

Fourth Quarter 2019



		Investing for the long run^TM \| 35

W. P. Carey Inc.

Investment Management – Fourth Quarter 2019



Selected Information – Managed Programs

Dollars and square footage in thousands, except per share amounts. As of or for the three months ended December 31, 2019.



	Managed Programs
	CPA:18 – Global			CWI 1			CWI 2			CESH
General
Year established	2013			2010			2015			2016
AUM ^(a)	$	2,427,805		$	2,703,098		$	2,021,647		$	329,479
Net-lease AUM ^(b)	1,362,813			N/A			N/A			63,670
NAV ^(c)	8.67			10.39			11.41			1,000.00
Fundraising status	Closed			Closed			Closed			Closed

Portfolio
Investment type	Net lease / Diversified REIT			Lodging REIT			Lodging REIT			Student Housing
Number of operating properties	82			24			12			7
Number of net-leased properties ^{(b) (d)}	47			N/A			N/A			2
Number of tenants – net-leased properties	61			N/A			N/A			1
Square footage ^{(e) (f)}	9,637			5,662			3,468			191
Occupancy ^(g)	99.4		%	70.8		%	71.3		%	100.0		%
Acquisitions – fourth quarter	$	—		$	—		$	—		$	—
Dispositions – fourth quarter	—			111,470			—			—

Balance Sheet (Book Value)
Total assets	$	2,234,803		$	2,094,691		$	1,576,982		$	341,782
Total debt	1,201,913			1,206,067			840,465			114,471
Total debt / total assets	53.8		%	57.6		%	53.3		%	33.5		%

________


(a)	Represents estimated fair value of real estate assets plus cash and cash equivalents, less distributions payable for the Managed REITs and estimated fair value of real estate assets plus cash for CESH.


(b)	During the fourth quarter of 2019, CESH entered into a framework agreement to net lease eight of its nine student housing projects upon construction completion (four of which are active build-to-suit projects). Pursuant to these agreements, two student housing operating properties were converted to net leases in December 2019.


(c)	The estimated NAVs for CWI 1 and CWI 2 were determined as of December 31, 2018. The estimated NAV for CPA:18 – Global was determined as of September 30, 2019. We own limited partnership units of CESH at its private placement price of $1,000 per unit; we do not intend to calculate a NAV for CESH.


(d)	During the fourth quarter of 2019, CPA 18 entered into a framework agreement to net lease 11 of its 12 international student housing projects upon construction completion. Pursuant to these agreements, one student housing operating property was converted to a net lease in December 2019.


(e)	For CPA:18 – Global and CESH, excludes operating properties.


(f)	For CESH, four net-leased properties have been placed into service as of December 31, 2019.


(g)	Represents occupancy for single-tenant net-leased properties for CPA:18 – Global and CESH. Represents occupancy for hotels owned by CWI 1 and CWI 2 for the three months ended December 31, 2019. Occupancy for in-service operating properties for CESH was 84.1% as of December 31, 2019.



		Investing for the long run^TM \| 36

W. P. Carey Inc.

Investment Management – Fourth Quarter 2019



Managed Programs Fee Summary

Dollars in thousands. For the three months ended December 31, 2019, unless otherwise noted.



	Managed Programs
	CPA:18 – Global		CWI 1		CWI 2		CESH ^(a)		Total
Year established	2013		2010		2015		2016
Fundraising status	Closed		Closed		Closed		Closed

1. Structuring and Other Advisory Fees ^(b)
Structuring fee, gross (% of total aggregate cost)	4.50% ^(c)		2.50%		2.50%		2.00%
Net of subadvisor fees ^(d)	4.50%		2.00%		1.875%		2.00%
Gross acquisition volume – fourth quarter	$	—	$	—	$	—	$	—	$	—
Gross disposition volume – fourth quarter	$	—	$	111,470	$	—	$	—	$	111,470
Structuring and other advisory revenue – fourth quarter ^(e)	$	—	$	836	$	225	$	—	$	1,061

2. Asset Management Fees
Asset management fee, gross (% of average AUM, per annum)	0.50% ^(f)		0.50% ^(f)		0.55% ^(f)		1.00% ^(g)
Net of subadvisor fees ^(d)	0.50%		0.40%		0.41%		1.00%
AUM – current quarter	$	2,427,805	$	2,703,098	$	2,021,647	$	329,479	$	7,482,029
AUM – prior quarter	$	2,470,249	$	2,826,346	$	2,014,511	$	305,236	$	7,616,342
Average AUM	$	2,449,027	$	2,764,722	$	2,018,079	$	317,358	$	7,549,186
Asset management revenue – fourth quarter ^(h)	$	2,884	$	3,379	$	2,683	$	786	$	9,732

3. Operating Partnership Interests ⁽ⁱ⁾
Operating partnership interests, gross (% of Available Cash)	10.00%		10.00%		10.00%		N/A
Net of subadvisor fees ^(d)	10.00%		8.00%		7.50%		N/A
Equity in earnings of equity method investments in the Managed Programs and real estate (profits interest) – fourth quarter^(j)	$	2,560	$	1,752	$	1,357	N/A		$	5,669

________


(a)	In addition to the fees shown, we may also receive distributions from CESH upon liquidation of the fund in an amount potentially equal to 20% of available cash after the limited partners have received certain cumulative distributions.


(b)	Other advisory fees primarily include disposition fees earned for completing dispositions on behalf of the Managed Programs. Structuring and other advisory fees are recorded in Structuring and other advisory revenue in our consolidated financial statements.

(c)

Comprised of an initial acquisition fee (generally 2.50% of the total aggregate cost of net-leased properties) paid when the transaction is completed and a subordinated acquisition fee (generally 2.00% of the total aggregate cost of net-leased properties) paid in annual installments over three years, provided certain performance criterion are met. The acquisition fee for other properties is generally 1.75% of the total aggregate cost.


(d)	We earn investment management revenue from CWI 1 and CWI 2 in our role as their advisor. Pursuant to the terms of their subadvisory agreements, however, 20% of the fees we receive from CWI 1 and 25% of the fees we receive from CWI 2 are paid to their respective subadvisors.


(e)	Amount for CWI 1 is related to mortgage loan refinancings and a disposition. Amount for CWI 2 is related to a mortgage loan refinancing.

(f)

Based on average market value of assets. Under the terms of the respective advisory agreements of the Managed REITs, we may elect to receive cash or shares of CWI 1 and CWI 2’s stock for asset management fees due, while CPA:18 – Global has an option to pay asset management fees in cash or shares upon our recommendation. Asset management fees are recorded in Asset management revenue in our consolidated financial statements.


(g)	Based on gross assets at fair value.


(h)	Amounts for CWI 1 and CWI 2 are gross of fees paid to their respective subadvisors.


(i)	Available Cash means cash generated by operating partnership operations and investments, excluding cash from sales and refinancings, after the payment of debt service and other operating expenses, but before distributions to partners. Amounts are recorded in Equity in earnings of equity method investments in the Managed Programs and real estate in our consolidated financial statements.


(j)	Amounts for CWI 1 and CWI 2 are net of fees paid to their respective subadvisors.



		Investing for the long run^TM \| 37

W. P. Carey Inc.

Investment Management – Fourth Quarter 2019



Investment Activity – Managed Programs

Dollars in thousands. Pro rata. For the year ended December 31, 2019.

Acquisitions

Gross Investment Amount

Gross Square Footage

Fund

Developer

Property Location(s)

Closing Date

Property

Type(s)

Ownership

1Q19

CPA:18 – Global ^{(a) (b)}

Grupo Moraval

Pamplona, Spain

29,736

Feb-19

Student Housing

91,363

100.0

1Q19 Total

29,736

91,363

2Q19 (N/A)

3Q19 (N/A)

4Q19 (N/A)

Year-to-Date Total Acquisitions

29,736

91,363



Dispositions							Gross Square Footage
Portfolio(s)	Tenant / Operator	Property Location(s)	Gross Sale Price		Closing Date	Property Type(s)	Gross Square Footage	Ownership
1Q19
CPA:18 – Global	Cayo Grande	Fort Walton Beach, FL	$	39,750	Jan-19	Multi-family	237,582	97.0	%
CPA:18 – Global ^(a)	Craigentinny	Edinburgh, United Kingdom	4,408		Mar-19	Industrial	24,788	100.0	%
1Q19 Total			44,158				262,370

2Q19
CPA:18 – Global ^(a)	Inverbreakie	Invergordon, United Kingdom	797		Apr-19	Industrial	10,045	100.0	%
CPA:18 – Global ^(a)	UK Automotive	Durham, United Kingdom	2,288		Jun-19	Industrial	10,809	100.0	%
2Q19 Total			3,085				20,854

3Q19
CPA:18 – Global (8 properties) ^(a)	Truffle	Various, United Kingdom	32,634		Aug-19	Industrial	409,112	100.0	%
CPA:18 – Global ^(a)	Jane Street Self Storage	Vaughan, Canada	4,508		Aug-19	Self Storage	N/A	100.0	%
CWI 1	Marriott	San Diego, CA	79,000		Sep-19	Hotel	178,020	100.0	%
3Q19 Total			116,142				587,132

4Q19
CWI 1	Hilton	New Orleans, LA	26,000		Oct-19	Hotel	119,638	87.6	%
CWI 1	Hampton Inn and Homewood Suites	Denver, CO	85,470		Nov-19	Hotel	287,739	100.0	%
4Q19 Total			111,470				407,377

Year-to-Date Total Dispositions			$	274,855			1,277,733

________


(a)	Amount reflects the applicable exchange rate on the date of the transaction.


(b)	Acquisition includes a build-to-suit transaction. Gross investment amount represents total commitment for build-to-suit funding.



		Investing for the long run^TM \| 38

W. P. Carey Inc.

Investment Management – Fourth Quarter 2019



Summary of Future Liquidity Strategies for the Managed Programs

As of December 31, 2019.

Liquidity events for the Managed REITs must be approved by each Managed REIT’s board of directors. A liquidity transaction could include sales of assets, either on a portfolio basis or individually; a listing of each Managed REIT’s shares on a national securities exchange; or a merger or other transaction(s) approved by the respective board of directors. Market conditions and other factors could cause the delay of a liquidity transaction or the commencement of liquidation. Even if a Managed REIT’s board of directors decides to liquidate, the Managed REIT is under no obligation to conclude a liquidation within a set timeframe because the precise timing of any transaction(s) will depend on the then-prevailing real estate and financial markets, the economic conditions of the areas in which properties are located and the federal income tax consequences to the Managed REIT’s stockholders.

________


(a)	Based on general liquidation guidelines set forth in the respective prospectuses for the timeframes that each board of directors is required to consider liquidity; ultimately, liquidation is approved by the independent directors of each program (except for CESH, which is determined by its General Partner).

(b)

On October 22, 2019, CWI 1 and CWI 2 announced that they have entered into a definitive merger agreement under which the two companies intend to merge in an all-stock transaction. The transaction is expected to close in the first quarter of 2020, subject to the approval of stockholders of each of CWI 1 and CWI 2, among other conditions. The special stockholder meetings for CWI 1 and CWI 2 are currently scheduled for March 26, 2020. Following the close of the merger, the combined company will complete an internalization transaction with us and its subadvisor Watermark Capital Partners, LLC, as a result of which the combined company will become self-managed. Following the completion of the merger, we would cease earning advisory fees and distributions of available cash from CWI 1 and CWI 2.



		Investing for the long run^TM \| 39

W. P. Carey Inc.

Investment Management – Fourth Quarter 2019



Summary of Back-End Fees for / Interests in the Managed Programs

The overview below is intended to provide a summary of current disclosures regarding various back-end fees and interests that we may be entitled to upon each Managed Program’s liquidity event. Such liquidity events are at the discretion of each Managed REIT’s board of directors and there is no assurance that any of the fees or interests described below will be realized. Please refer to each Managed REIT’s filings with the SEC for complete descriptions of each Managed REIT’s liquidity strategy.



	Back-End Fees and Interests
	CPA:18 – Global	CWI 1 ^(a)	CWI 2 ^(a)	CESH
Disposition Fees	Investments other than those described below — equal to the lesser of (i) 50% of the brokerage commission paid or (ii) 3% of the contract sales price of a property. Readily marketable real estate securities — none.	Equal to the lesser of: (i) 50% of the competitive real estate commission and (ii) 1.5% of the contract sales price of a property.	Equal to the lesser of: (i) 50% of the competitive real estate commission and (ii) 1.5% of the contract sales price of a property.	N/A
Interest in Disposition Proceeds	Special general partner interest entitled to receive distributions of up to 15% of the net proceeds from the sale, exchange or other disposition of operating partnership assets remaining after the corporation has received a return of 100% of its initial investment in the operating partnership, through certain liquidity events or distributions, plus the 6% preferred return rate.	Special general partner interest receives up to 15% of the net proceeds from the sale, exchange or other disposition of operating partnership assets remaining after the corporation has received a return of 100% of its initial investment in the operating partnership (through certain liquidity transactions or distributions) plus the six percent preferred return rate. A listing will not trigger the payment of this distribution.	Special general partner interest receives up to 15% of the net proceeds from the sale, exchange or other disposition of operating partnership assets remaining after the corporation has received a return of 100% of its initial investment in the operating partnership (through certain liquidity transactions or distributions) plus the six percent preferred return rate. A listing will not trigger the payment of this distribution.	Available Cash (as defined in In “Principal Terms”), subject to any other limitations provided for herein, will be initially apportioned among the Limited Partners in proportion to their respective capital contributions and the General Partner as provided in connection with its Carried Interest and distributed. ^(b)
Purchase of Special GP Interest	Lesser of (i) 5.0x the distributions of the last completed fiscal year and (ii) the discounted value of expected future distributions from point of valuation to March 2025 using a discount rate used by the independent third-party valuation firm to determine the most recent appraisal.	Fair market value as determined by appraisal.	Fair market value as determined by appraisal.	N/A
Distribution Related to Ownership of Shares	3.9% ownership as of 12/31/2019	3.9% ownership as of 12/31/2019	3.8% ownership as of 12/31/2019	2.4% ownership as of 12/31/2019

________

(a)

On October 22, 2019, CWI 1 and CWI 2 announced that they have entered into a definitive merger agreement under which the two companies intend to merge in an all-stock transaction with CWI 2 as the surviving entity. The transaction is expected to close in the first quarter of 2020, subject to the approval of stockholders of each of CWI 1 and CWI 2, among other conditions. The special stockholder meetings for CWI 1 and CWI 2 are currently scheduled for March 26, 2020. In connection with the merger, we have entered into an internalization agreement with CWI 1 and CWI 2. Immediately following the closing of the merger, the operating partnerships of each of CWI 1 and CWI 2 will redeem the special general partner interests that we hold, for which we will receive approximately $97 million in consideration, comprised of $65 million in shares of CWI 2 preferred stock (which are anticipated to carry an initial dividend of 5.0%) and 2,840,549 shares of CWI 2 common stock valued at approximately $32 million. See our Form 8-K filed on October 22, 2019 for more details.

(b)

Order of distributions are as follows: (1) First, to a Limited Partner until it has received an amount equal to its total capital contributions or deemed capital contribution with respect to the Advisor Units in the case of the Advisor (or a wholly owned subsidiary of the Advisor); (2) Second, to a Limited Partner until such Limited Partner has received a cumulative, non-compounding, annual 10% return on its unreturned capital contributions (the “Preferred Return”); (3) Third, to the General Partner until the General Partner has received 20% of the aggregate amounts distributed pursuant to clause (2) and this clause (3); (4) Thereafter, 80% to such Limited Partner and 20% to the General Partner (together with the amounts received under clause (3), the General Partner’s “Carried Interest”). The Advisor’s capital contribution for purposes of the Partnership Agreement will be deemed to be the value of the Advisor Units upon their issuance.



		Investing for the long run^TM \| 40

W. P. Carey Inc.

Appendix

Fourth Quarter 2019



		Investing for the long run^TM \| 41

W. P. Carey Inc.

Appendix – Fourth Quarter 2019



Normalized Pro Rata Cash NOI

In thousands. From real estate.



	Three Months Ended Dec. 31, 2019
Consolidated Lease Revenues
Total lease revenues – as reported	$	274,795
Less: Consolidated Reimbursable and Non-Reimbursable Property Expenses
Reimbursable property expenses – as reported	12,877
Non-reimbursable property expenses – as reported	9,341
	252,577

Plus: NOI from Operating Properties
Hotel revenues ^(a)	3,554
Hotel expenses ^(a)	(2,833		)
	721

Self-storage revenues	1,348
Self-storage expenses	(184		)
	1,164

	254,462

Adjustments for Pro Rata Ownership of Real Estate Joint Ventures:
Add: Pro rata share of NOI from equity investments	5,460
Less: Pro rata share of NOI attributable to noncontrolling interests	(22		)
	5,438

	259,900

Adjustments for Pro Rata Non-Cash Items:
Add: Above- and below-market rent intangible lease amortization	17,036
Less: Straight-line rent amortization	(5,001		)
Add: Other non-cash items	473
	12,508

Pro Rata Cash NOI ^(b)	272,408

Adjustment to normalize for intra-period acquisitions, completed capital investment projects and dispositions ^(c)	(1,291		)

Normalized Pro Rata Cash NOI ^(b)	$	271,117



		Investing for the long run^TM \| 42

W. P. Carey Inc.

Appendix – Fourth Quarter 2019

The following table presents a reconciliation from Net income from Real Estate attributable to W. P. Carey to Normalized pro rata cash NOI:



	Three Months Ended Dec. 31, 2019
Net Income from Real Estate Attributable to W. P. Carey
Net income from Real Estate attributable to W. P. Carey – as reported	$	124,333
Adjustments for Consolidated Operating Expenses
Add: Operating expenses – as reported	162,978
Less: Property expenses, excluding reimbursable tenant costs – as reported	(9,341		)
Less: Operating property expenses – as reported	(8,000		)
	145,637

Adjustments for Other Consolidated Revenues and Expenses:
Less: Lease termination income and other – as reported	(12,317		)
Less: Reimbursable property expenses – as reported	(12,877		)
Less: Other income and (expenses)	(9,046		)
Add: Provision for income taxes	18,113
	(16,127		)

Other Adjustments:
Add: Above- and below-market rent intangible lease amortization	17,037
Add: Adjustments for pro rata ownership	5,454
Less: Straight-line rent amortization	(4,991		)
Adjustment to normalize for intra-period acquisitions, completed capital investment projects and dispositions ^(c)	(1,291		)
Adjustment to normalize for unstabilized hotel ^(a)	635
Add: Property expenses, excluding reimbursable tenant costs, non-cash	430
	17,274

Normalized Pro Rata Cash NOI ^(b)	$	271,117

________


(a)	We exclude an unstabilized hotel’s NOI since it is currently being renovated. This hotel was classified as held for sale as of December 31, 2019 and was sold in January 2020.


(b)	Pro rata cash NOI and normalized pro rata cash NOI are non-GAAP measures. See the Terms and Definitions section that follows for a description of our non-GAAP measures and for details on how pro rata cash NOI and normalized pro rata cash NOI are calculated.

(c)

For properties acquired and capital investment projects completed during the three months ended December 31, 2019, the adjustment modifies our pro rata share of cash NOI for the partial period with an amount estimated to be equivalent to the additional pro rata share of cash NOI necessary to reflect ownership for the full quarter. For properties disposed of during the three months ended December 31, 2019, the adjustment eliminates our pro rata share of cash NOI for the period.



		Investing for the long run^TM \| 43

W. P. Carey Inc.

Appendix – Fourth Quarter 2019



Adjusted EBITDA, Consolidated – Last Five Quarters

In thousands.



	Three Months Ended
	Dec. 31, 2019			Sep. 30, 2019			Jun. 30, 2019			Mar. 31, 2019			Dec. 31, 2018
Net income	$	129,792		$	41,835		$	66,121		$	68,796		$	195,278

Adjustments to Derive Consolidated EBITDA
Depreciation and amortization	111,607			109,517			113,632			112,379			93,321
Interest expense	53,667			58,626			59,719			61,313			57,250
Provision for (benefit from) income taxes	21,064			4,157			3,119			(2,129		)	11,436
Consolidated EBITDA ^(a)	316,130			214,135			242,591			240,359			357,285

Adjustments to Derive Adjusted EBITDA ^(b)
Other (gains) and losses ^(c)	(38,196		)	18,618			5,724			4,930			(9,001		)
(Gain) loss on sale of real estate, net	(17,501		)	(71		)	362			(933		)	(99,618		)
Above- and below-market rent intangible and straight-line rent adjustments ^(d)	12,046			8,591			8,467			9,660			8,888
Impairment charges	6,758			25,781			—			—			—
Other amortization and non-cash charges ^(e)	(5,791		)	422			415			(327		)	(408		)
Stock-based compensation expense	4,939			4,747			4,936			4,165			3,902
Merger and other expenses ^(f)	(811		)	70			696			146			37,098
Loss (gain) on change in control of interests ^{(g) (h)}	—			8,416			—			—			(47,814		)
	(38,556		)	66,574			20,600			17,641			(106,953		)

Adjustments for Pro Rata Ownership
Real Estate Joint Ventures:
Add: Pro rata share of adjustments for equity investments	4,300			5,471			5,744			6,106			4,143
Less: Pro rata share of adjustments for amounts attributable to noncontrolling interests	(459		)	(530		)	(117		)	(399		)	(2,662		)
	3,841			4,941			5,627			5,707			1,481
Equity Investments in the Managed Programs: ⁽ⁱ⁾
Add: Distributions received from equity investments in the Managed Programs	2,089			1,980			1,870			1,753			4,238
Less: Loss from equity investments in the Managed Programs	173			288			45			116			682
	2,262			2,268			1,915			1,869			4,920
Add: Intra-period normalization of CPA:17 Merger (closed October 31, 2018) ^(j)	—			—			—			—			21,528
Adjusted EBITDA ^(a)	$	283,677		$	287,918		$	270,733		$	265,576		$	278,261

________


(a)	EBITDA and adjusted EBITDA are non-GAAP measures. See the Terms and Definitions section that follows for a description of our non-GAAP measures.

(b)

Comprised of items that we do not consider to be part of our core operating business plan or representative of our overall long-term operating performance, based on a number of factors, including the nature of the item and/or the frequency with which it occurs. We believe that these adjustments provide a more representative view of EBITDA from our core operating business and allow for more meaningful comparisons.


(c)	Primarily comprised of unrealized gains and losses on derivatives, and gains and losses from foreign currency movements, extinguishment of debt and marketable securities.


(d)	Straight-line rent adjustments relate to our net-leased properties subject to operating leases.


(e)	Amount for the three months ended December 31, 2019 includes an adjustment to exclude $6.2 million of non-cash lease termination revenue, which will be collected and reflected within adjusted EBITDA over the remaining master lease term.


(f)	Amount for the three months ended December 31, 2018 is primarily comprised of costs incurred in connection with the CPA:17 Merger.

(g)

(h)


(i)	Adjustments to include cash distributions received from the Managed Programs in place of our pro rata share of net income from our ownership in the Managed Programs.


(j)	The adjustment modifies adjusted EBITDA for the pro rata share of cash NOI for the partial period with an amount estimated to be equivalent to the additional pro rata share of cash NOI necessary to reflect ownership for the full quarter. The adjustment is reduced for advisory fees received from CPA:17 – Global during the three months ended December 31, 2018.



		Investing for the long run^TM \| 44

W. P. Carey Inc.

Appendix – Fourth Quarter 2019



Adjusted EBITDA, Real Estate – Last Five Quarters

In thousands.



	Three Months Ended
	Dec. 31, 2019			Sep. 30, 2019			Jun. 30, 2019			Mar. 31, 2019			Dec. 31, 2018
Net income from Real Estate	$	124,317		$	33,545		$	60,759		$	53,334		$	153,626

Adjustments to Derive Consolidated EBITDA
Depreciation and amortization	110,648			108,573			112,666			111,413			92,330
Interest expense	53,667			58,626			59,719			61,313			57,250
Provision for income taxes	18,113			3,511			3,019			6,159			948
Consolidated EBITDA – Real Estate ^(a)	306,745			204,255			236,163			232,219			304,154

Adjustments to Derive Adjusted EBITDA ^(b)
Other (gains) and losses ^(c)	(38,546		)	18,956			5,888			3,929			(11,269		)
(Gain) loss on sale of real estate, net	(17,501		)	(71		)	362			(933		)	(99,618		)
Above- and below-market rent intangible and straight-line rent adjustments ^(d)	12,046			8,591			8,467			9,660			8,888
Impairment charges	6,758			25,781			—			—			—
Other amortization and non-cash charges ^(e)	(5,791		)	422			415			(326		)	(240		)
Stock-based compensation expense	3,531			3,435			3,482			2,800			2,774
Merger and other expenses ^(f)	(811		)	70			696			146			37,098
Loss (gain) on change in control of interests ^{(g) (h)}	—			8,416			—			—			(18,792		)
	(40,314		)	65,600			19,310			15,276			(81,159		)

Adjustments for Pro Rata Ownership
Real Estate Joint Ventures:
Add: Pro rata share of adjustments for equity investments	4,300			5,471			5,744			6,106			4,143
Less: Pro rata share of adjustments for amounts attributable to noncontrolling interests	(459		)	(530		)	(117		)	(399		)	(2,662		)
	3,841			4,941			5,627			5,707			1,481
Add: Intra-period normalization of CPA:17 Merger (closed October 31, 2018) ⁽ⁱ⁾	—			—			—			—			31,555
Adjusted EBITDA – Real Estate ^(a)	$	270,272		$	274,796		$	261,100		$	253,202		$	256,031

________


(a)	EBITDA and adjusted EBITDA are non-GAAP measures. See the Terms and Definitions section that follows for a description of our non-GAAP measures.

(b)


(c)	Primarily comprised of unrealized gains and losses on derivatives, and gains and losses from foreign currency movements, extinguishment of debt and marketable securities.


(d)	Straight-line rent adjustments relate to our net-leased properties subject to operating leases.


(e)	Amount for the three months ended December 31, 2019 includes an adjustment to exclude $6.2 million of non-cash lease termination revenue, which will be collected and reflected within adjusted EBITDA over the remaining master lease term.


(f)	Amount for the three months ended December 31, 2018 is primarily comprised of costs incurred in connection with the CPA:17 Merger.

(g)


(h)	Amount for the three months ended December 31, 2018 represents a gain recognized on the purchase of the remaining interests in six investments from CPA:17 – Global in the CPA:17 Merger, which we had previously accounted for under the equity method.


(i)	The adjustment modifies adjusted EBITDA for the pro rata share of cash NOI for the partial period with an amount estimated to be equivalent to the additional pro rata share of cash NOI necessary to reflect ownership for the full quarter.



		Investing for the long run^TM \| 45

W. P. Carey Inc.

Appendix – Fourth Quarter 2019



Adjusted EBITDA, Investment Management – Last Five Quarters

In thousands.



	Three Months Ended
	Dec. 31, 2019		Sep. 30, 2019			Jun. 30, 2019			Mar. 31, 2019			Dec. 31, 2018
Net income from Investment Management	$	5,475	$	8,290		$	5,362		$	15,462		$	41,652

Adjustments to Derive Consolidated EBITDA
Provision for (benefit from) income taxes	2,951		646			100			(8,288		)	10,488
Depreciation and amortization	959		944			966			966			991
Consolidated EBITDA – Investment Management^(a)	9,385		9,880			6,428			8,140			53,131

Adjustments to Derive Adjusted EBITDA ^(b)
Stock-based compensation expense	1,408		1,312			1,454			1,365			1,128
Other (gains) and losses ^(c)	350		(338		)	(164		)	1,001			2,268
Other amortization and non-cash charges	—		—			—			(1		)	(168		)
Gain on change in control of interests ^(d)	—		—			—			—			(29,022		)
	1,758		974			1,290			2,365			(25,794		)

Adjustments for Pro Rata Ownership
Equity Investments in the Managed Programs: ^(e)
Add: Distributions received from equity investments in the Managed Programs	2,089		1,980			1,870			1,753			4,238
Less: Loss from equity investments in the Managed Programs	173		288			45			116			682
	2,262		2,268			1,915			1,869			4,920
Add: Intra-period normalization of CPA:17 Merger (closed October 31, 2018) ^(f)	—		—			—			—			(10,027		)
Adjusted EBITDA – Investment Management^(a)	$	13,405	$	13,122		$	9,633		$	12,374		$	22,230

________


(a)	EBITDA and adjusted EBITDA are non-GAAP measures. See the Terms and Definitions section that follows for a description of our non-GAAP measures.

(b)


(c)	Primarily comprised of gains and losses from foreign currency movements and marketable securities.


(d)	Amount for the three months ended December 31, 2018 represents a gain recognized on our previously held interest in shares of CPA:17 – Global common stock in connection with the CPA:17 Merger.


(e)	Adjustments to include cash distributions received from the Managed Programs in place of our pro rata share of net income from our ownership in the Managed Programs.


(f)	The adjustment reduces adjusted EBITDA for advisory fees received from CPA:17 – Global during the three months ended December 31, 2018.



		Investing for the long run^TM \| 46

W. P. Carey Inc.

Appendix – Fourth Quarter 2019



Terms and Definitions

Non-GAAP Financial Disclosures

FFO and AFFO

Due to certain unique operating characteristics of real estate companies, as discussed below, NAREIT, an industry trade group, has promulgated a non-GAAP measure known as FFO, which we believe to be an appropriate supplemental measure, when used in addition to and in conjunction with results presented in accordance with GAAP, to reflect the operating performance of a REIT. The use of FFO is recommended by the REIT industry as a supplemental non-GAAP measure. FFO is not equivalent to, nor a substitute for, net income or loss as determined under GAAP.

We define FFO, a non-GAAP measure, consistent with the standards established by the White Paper on FFO approved by the Board of Governors of NAREIT, as restated in December 2018. The White Paper defines FFO as net income or loss computed in accordance with GAAP, excluding gains or losses from sales of property, impairment charges on real estate, gains or losses on changes in control of interests in real estate and depreciation and amortization from real estate assets; and after adjustments for unconsolidated partnerships and jointly owned investments. Adjustments for unconsolidated partnerships and jointly owned investments are calculated to reflect FFO.

We also modify the NAREIT computation of FFO to adjust GAAP net income for certain non-cash charges, such as amortization of real estate-related intangibles, deferred income tax benefits and expenses, straight-line and other non-cash rent adjustments, stock-based compensation, non-cash environmental accretion expense and amortization of deferred financing costs. 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 non-core income and expenses, such as gains or losses from extinguishment of debt, restructuring and related compensation expenses and merger and acquisition expenses. We also exclude realized and unrealized gains/losses on foreign currency exchange transactions (other than those realized on the settlement of foreign currency 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 to arrive at AFFO as they are not the primary drivers in our decision-making process and excluding these items provides investors a view of our portfolio performance over time and makes it more comparable to other REITs that are currently not engaged in acquisitions, mergers and restructuring, which are not part of our normal business operations. AFFO also reflects adjustments for unconsolidated partnerships and jointly owned investments. 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 as we believe 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 income computed under GAAP, or as alternatives to net cash provided by operating activities computed under GAAP, or as indicators of our ability to fund our cash needs.

Pro Rata Cash NOI

Cash net operating income (“cash NOI”) is a non-GAAP financial measure that is intended to reflect the performance of our net leased and operating properties. We define cash NOI as cash rents from our leased and operating properties less non-reimbursable property expenses. Cash NOI excludes amortization of intangibles and straight-line rent adjustments that are included in GAAP lease revenues. We present cash NOI on a pro rata basis (“pro rata cash NOI”), to account for our share of income related to unconsolidated joint ventures and noncontrolling interests. We believe that pro rata cash NOI is a helpful measure that both investors and management can use to evaluate the financial performance of our leased and operating properties and it allows for comparison of our operating performance between periods and to other REITs. Pro rata cash NOI should not be considered as an alternative to net income as an indication of our financial performance or to cash flows as a measure of liquidity or our ability to fund all needs. The method by which we calculate and present cash NOI and/or pro rata cash NOI, may not be directly comparable to the way other REITs present such metrics.

Normalized Pro Rata Cash NOI

Normalized pro rata cash NOI is pro rata cash NOI as defined above adjusted primarily to exclude our pro rata share of cash NOI from properties disposed of during the most recent quarter and to include a full quarter of pro rata cash NOI related to properties acquired or capital investment projects completed during the period, as applicable. We also excluded an unstabilized hotel’s NOI since it was being renovated; this hotel was sold in January 2020. We believe this measure provides a helpful representation of our net operating income from our in-place leased and operating properties.



		Investing for the long run^TM \| 47

W. P. Carey Inc.

Appendix – Fourth Quarter 2019

Adjusted EBITDA

We believe that EBITDA is a useful supplemental measure to investors and analysts for assessing the performance of our business segments because (i) it removes the impact of our capital structure from our operating results and (ii) 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, non-cash rent adjustments and unrealized gains and losses from our hedging activity. Additionally, we exclude gains and losses on sale of real estate, 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. For the three months ended December 31, 2018, we also modified adjusted EBITDA for the pro rata share of cash NOI for the partial period with an amount estimated to be equivalent to the additional pro rata share of cash NOI necessary to reflect ownership of properties acquired in the CPA:17 Merger for the full quarter; we also reduced adjusted EBITDA for advisory fees received from CPA:17 – Global during that quarter. Adjusted EBITDA reflects adjustments for unconsolidated partnerships and jointly owned investments. Our assessment of our operations is focused on long-term sustainability and not on such non-cash and non-core 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, 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 as calculated by us may not be comparable to similarly titled measures of other companies.

Other Metrics

Pro Rata Metrics

This supplemental package contains certain metrics prepared under the pro rata consolidation method. We refer to these metrics as pro rata metrics. We have a number of investments, usually with our affiliates, in which our economic ownership is less than 100%. Under the full consolidation method, 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, for all other jointly owned investments, which we do not control, we report our net investment and our net income or loss from that investment. Under the pro rata consolidation method, we present our proportionate share, based on our economic ownership of these jointly owned investments, of the assets, liabilities, revenues and expenses of those investments. Multiplying each of our jointly owned investments’ financial statement line items by our percentage ownership and adding or subtracting those amounts from our totals, as applicable, may not accurately depict the legal and economic implications of holding an ownership interest of less than 100% in our jointly owned investments.

ABR

ABR represents contractual minimum annualized base rent for our net-leased properties, net of receivable reserves as determined by GAAP, and reflects exchange rates as of December 31, 2019. If there is a rent abatement, we annualize the first monthly contractual base rent following the free rent period. ABR is not applicable to operating properties and is presented on a pro rata basis.



		Investing for the long run^TM \| 48

General Liquidation Guideline ^(a)

CPA:18 – Global

CWI 1 ^(b)

CWI 2 ^(b)

Beginning after the seventh anniversary of the closing of the initial public offering in 2015

Beginning six years following the termination of the initial public offering in 2013

Beginning six years following the termination of the initial public offering in 2017

Beginning five years after raising the minimum offering amount in 2016