NEW YORK, Nov. 3, 2017 /PRNewswire/ -- W. P. Carey Inc. (NYSE: WPC) (W. P. Carey or the Company), an internally-managed net lease real estate investment trust, today reported its financial results for the third quarter ended September 30, 2017.

Total Company



    --  Net income attributable to W. P. Carey of $80.3 million, or $0.74 per
        diluted share

    --  AFFO of $148.2 million, or $1.37 per diluted share

    --  2017 AFFO guidance range raised and narrowed to $5.25 to $5.35 per
        diluted share
    --  Quarterly cash dividend raised to $1.005 per share, equivalent to an
        annualized dividend rate of $4.02 per share

Business Segments

Owned Real Estate



    --  Segment net income attributable to W. P. Carey of $56.5 million

    --  Segment AFFO of $116.3 million, or $1.07 per diluted share

    --  Commenced expansion and build-to-suit projects for an expected total
        investment of $83.0 million

    --  Gross disposition proceeds totaling $59.6 million
    --  Portfolio occupancy of 99.8%

Investment Management



    --  Segment net income attributable to W. P. Carey of $23.8 million

    --  Segment AFFO of $31.9 million, or $0.30 per diluted share

    --  Assets under management of $13.2 billion

    --  Management of BDC transitioned to Guggenheim Partners
    --  Completed wind-down of Carey Financial

MANAGEMENT COMMENTARY

"We reported solid third quarter results, generating AFFO of $1.37 per diluted share, and raised our full year 2017 guidance range to between $5.25 and $5.35 per diluted share," said Mark J. DeCesaris, Chief Executive Officer of W. P. Carey. "Our revenue mix continues to move towards more stable, recurring income streams and our results continue to benefit from both a lower weighted-average cost of debt and the enhancements we have made to our cost structure. Along with our strategic shift towards focusing exclusively on net lease investing for our owned portfolio, these initiatives lay the foundation for W. P. Carey's continued growth under Jason Fox's leadership, when he assumes the role of CEO in January, as we announced earlier today."

QUARTERLY FINANCIAL RESULTS

As previously announced, as a result of its decision to exit all non-traded retail fundraising activities, the Company revised its segment presentation recognizing equity income earned through its ownership interests in the Managed REITs and its special member interests in the operating partnerships of the Managed REITs within its Investment Management segment. Prior to the 2017 second quarter, these items were recognized within its Owned Real Estate segment. For purposes of comparability, segment financial statements for all periods presented have been revised to reflect this change.

Revenues



    --  Total Company: Revenues excluding reimbursable costs (net revenues) for
        the 2017 third quarter totaled $199.1 million, down 2.5% from $204.2
        million for the 2016 third quarter, due to lower net revenues from both
        Owned Real Estate and Investment Management.

    --  Owned Real Estate: Owned Real Estate net revenues for the 2017 third
        quarter were $171.2 million, down 1.3% from $173.5 million for the 2016
        third quarter, due primarily to lower lease revenues resulting from
        property dispositions, which more than offset additional lease revenues
        from property acquisitions and rent escalations, and a stronger euro
        relative to the U.S. dollar.
    --  Investment Management: Investment Management net revenues for the 2017
        third quarter were $28.0 million, down 8.5% from $30.6 million for the
        2016 third quarter, due primarily to lower structuring revenues and
        lower dealer manager fees, which more than offset higher asset
        management fees resulting from growth in assets under management.

Net Income Attributable to W. P. Carey


    --  Net income attributable to W. P. Carey for the 2017 third quarter was
        $80.3 million, down 27.6% compared to $110.9 million for the 2016 third
        quarter, due primarily to a lower aggregate gain on sale of real estate.

Adjusted Funds from Operations (AFFO)


    --  AFFO for the 2017 third quarter was $1.37 per diluted share, up 2.2%
        from $1.34 per diluted share for the 2016 third quarter, due primarily
        to lower interest expense and higher distributions of available cash
        from the Company's interests in the Managed REITs, which were partly
        offset by lower net revenues from Investment Management and lower lease
        revenues.

Note: Further information concerning AFFO, a non-GAAP supplemental performance metric, is presented in the accompanying tables and related notes.

Dividend


    --  As previously announced, on September 20, 2017, the Company's Board of
        Directors declared a quarterly cash dividend of $1.005 per share,
        equivalent to an annualized dividend rate of $4.02 per share. The
        dividend was paid on October 16, 2017 to stockholders of record as of
        October 2, 2017.

AFFO GUIDANCE


    --  The Company has raised and narrowed its AFFO guidance range for the 2017
        full year to between $5.25 and $5.35 per diluted share.

Note: The Company does not provide guidance on net income. The Company only provides guidance on AFFO and does not provide a reconciliation of this forward-looking non-GAAP guidance to net income due to the inherent difficulty in quantifying certain items necessary to provide such reconciliation as a result of their unknown effect, timing and potential significance. Examples of such items include impairments of assets, gains and losses from sales of assets and depreciation and amortization from new acquisitions.

OWNED REAL ESTATE

Investments



    --  During the 2017 third quarter, the Company did not complete any
        investments for its Owned Real Estate portfolio. Total investment
        activity for the nine months ended September 30, 2017 was $63.6 million.
    --  During the 2017 third quarter, the Company commenced four expansion
        projects with existing tenants and one build-to-suit project, for an
        expected total investment of approximately $83.0 million, which are
        expected to be completed over the next 12 months.

Dispositions


    --  During the 2017 third quarter, the Company disposed of five properties
        for total gross proceeds of $59.6 million, bringing total dispositions
        for the nine months ended September 30, 2017 to $132.5 million.

Composition


    --  As of September 30, 2017, the Company's Owned Real Estate portfolio
        consisted of 890 net lease properties, comprising 85.9 million square
        feet leased to 211 tenants, and two hotel operating properties. As of
        that date, the weighted-average lease term of the net lease portfolio
        was 9.5 years and the occupancy rate was 99.8%.

INVESTMENT MANAGEMENT


    --  W. P. Carey is the advisor to CPA(®):17 - Global and CPA(®):18 -
        Global (the CPA(® )REITs), Carey Watermark Investors Incorporated (CWI
        1) and Carey Watermark Investors 2 Incorporated (CWI 2) (the CWI REITs,
        and together with the CPA(® )REITs, the Managed REITs), and Carey
        European Student Housing Fund I, L.P. (CESH I, and together with the
        Managed REITs, the Managed Programs).

Management of BDC Transitioned to Guggenheim Partners


    --  During the 2017 third quarter, the Company resigned as the advisor to
        its business development company (BDC) fund, Carey Credit Income Fund
        (CCIF). On October 20, 2017, the shareholders of CCIF approved the
        appointment of CCIF's former subadvisor, Guggenheim Partners Investment
        Management, LLC, which had been acting as interim advisor, as sole
        advisor.

Acquisitions


    --  During the 2017 third quarter, the Company structured new investments on
        behalf of the Managed Programs totaling $484.1 million, primarily
        related to the CWI REITs and CESH I, bringing total investment volume on
        behalf of the Managed Programs for the nine months ended September 30,
        2017 to $1.1 billion.

Assets Under Management


    --  As of September 30, 2017, the Managed Programs had total assets under
        management of approximately $13.2 billion, up 8.2% from $12.2 billion as
        of September 30, 2016.

* * * * *

Supplemental Information

The Company has provided supplemental unaudited financial and operating information regarding the 2017 third quarter, including a description of non-GAAP financial measures and reconciliations to GAAP measures, in a Current Report on Form 8-K filed with the Securities and Exchange Commission (SEC) on November 3, 2017.

* * * * *

Live Conference Call and Audio Webcast Scheduled for 10:00 a.m. Eastern Time
Please call to register at least 10 minutes prior to the start time.

Date/Time: Friday, November 3, 2017 at 10:00 a.m. Eastern Time
Call-in Number: 1-877-465-1289 (US) or +1-201-689-8762 (international)

Audio Webcast: www.wpcarey.com/earnings

Audio Webcast Replay

An audio replay of the call will be available at www.wpcarey.com/earnings.

* * * * *

W. P. Carey Inc.

W. P. Carey Inc. is a leading internally-managed net lease REIT that provides long-term sale-leaseback and build-to-suit financing solutions primarily for companies in the U.S. and Europe. At September 30, 2017, the Company had an enterprise value of approximately $11.4 billion. In addition to its owned portfolio of diversified global real estate, W. P. Carey manages a series of investment programs with assets under management of approximately $13.2 billion. Its corporate finance-focused credit and real estate underwriting process is a constant that has been successfully leveraged across a wide variety of industries and property types. Furthermore, its portfolio of long-term leases with creditworthy tenants has an established history of generating stable cash flows, enabling it to deliver consistent and rising dividend income to investors for over four decades.
www.wpcarey.com

* * * * *

Cautionary Statement Concerning Forward-Looking Statements

Certain of the matters discussed in this communication constitute forward-looking statements within the meaning of the Securities Act of 1933 and the Exchange Act of 1934, both as amended by the Private Securities Litigation Reform Act of 1995. The forward-looking statements include, among other things, statements regarding the intent, belief, or expectations of W. P. Carey and can be identified by the use of words such as "may," "will," "should," "would," "assume," "outlook," "seek," "plan," "believe," "expect," "anticipate," "intend," "estimate," "forecast" and other comparable terms. These forward-looking statements include, but are not limited to, the statements made by Mr. DeCesaris, including statements regarding our operational efficiencies and enhanced cost structure; weighted-average lease term, criticality, yields, and occupancy rate of our owned real estate and other portfolio characteristics; growth in assets under management; the acquisition environment and our risk-reward criteria, including the impact of such factors on the types of investments we make and whether they are accretive; annualized dividends and payout ratio; disposition and capital recycling plans, and the intended results thereof; our access to capital markets, as well as our financing activities, cost of debt and interest expense levels; adjusted funds from operations coverage and guidance, including underlying assumptions, such as the timing of acquisitions and dispositions and the impact thereof, and current trends; our revenue mix and the stability and recurring nature of our income streams, as well as the benefits and results of our strategic shift towards focusing exclusively on net lease investing for our Owned Portfolio; and anticipated future financial and operating performance and results, including underlying assumptions and estimates of growth. These statements are based on the current expectations of the management of W. P. Carey. It is important to note that W. P. Carey's actual results could be materially different from those projected in such forward-looking statements. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Other unknown or unpredictable factors could also have material adverse effects on future results, performance or achievements of W. P. Carey. Discussions of some of these other important factors and assumptions are contained in W. P. Carey's filings with the SEC and are available at the SEC's website at http://www.sec.gov, including Item 1A. Risk Factors in W. P. Carey's Annual Report on Form 10-K for the year ended December 31, 2016. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this communication may not occur. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this communication, unless noted otherwise. Except as required under the federal securities laws and the rules and regulations of the SEC, W. P. Carey does not undertake any obligation to release publicly any revisions to the forward-looking statements to reflect events or circumstances after the date of this communication or to reflect the occurrence of unanticipated events.

* * * * *



                                                                                                                W. P. CAREY INC.
                                                                                                    Consolidated Balance Sheets (Unaudited)
                                                                                               (in thousands, except share and per share amounts)


                                                                                                                                                  September 30, 2017            December 31, 2016
                                                                                                                                                  ------------------            -----------------

    Assets

    Investments in real estate:

    Land, buildings and improvements (a)                                                                                                                             $5,429,239                       $5,285,837

    Net investments in direct financing leases                                                                                                               717,184                          684,059

    In-place lease and other intangible assets                                                                                                             1,204,770                        1,172,238

    Above-market rent intangible assets                                                                                                                      639,140                          632,383

    Assets held for sale (b)                                                                                                                                  10,596                           26,247
                                                                                                                                                              ------                           ------

    Investments in real estate                                                                                                                             8,000,929                        7,800,764

    Accumulated depreciation and amortization (c)                                                                                                        (1,249,024)                     (1,018,864)
                                                                                                                                                          ----------                       ----------

    Net investments in real estate                                                                                                                         6,751,905                        6,781,900

    Equity investments in the Managed Programs and real estate (d)                                                                                           327,598                          298,893

    Cash and cash equivalents                                                                                                                                169,770                          155,482

    Due from affiliates                                                                                                                                      154,336                          299,610

    Other assets, net                                                                                                                                        287,481                          282,149

    Goodwill                                                                                                                                                 643,321                          635,920

    Total assets                                                                                                                                                     $8,334,411                       $8,453,954
                                                                                                                                                                     ==========                       ==========


    Liabilities and Equity

    Debt:

    Unsecured senior notes, net                                                                                                                                      $2,455,383                       $1,807,200

    Unsecured term loans, net                                                                                                                                382,191                          249,978

    Unsecured revolving credit facility                                                                                                                      224,213                          676,715

    Non-recourse mortgages, net                                                                                                                            1,253,051                        1,706,921
                                                                                                                                                           ---------                        ---------

    Debt, net                                                                                                                                              4,314,838                        4,440,814

    Accounts payable, accrued expenses and other liabilities                                                                                                 255,911                          266,917

    Below-market rent and other intangible liabilities, net                                                                                                  116,980                          122,203

    Deferred income taxes                                                                                                                                     86,581                           90,825

    Distributions payable                                                                                                                                    109,187                          107,090


    Total liabilities                                                                                                                                      4,883,497                        5,027,849
                                                                                                                                                           ---------                        ---------

    Redeemable noncontrolling interest                                                                                                                           965                              965
                                                                                                                                                                 ---                              ---


    Preferred stock, $0.001 par value, 50,000,000 shares authorized; none issued                                                                                   -                               -

    Common stock, $0.001 par value, 450,000,000 shares authorized; 106,897,515 and 106,294,162                                                                   107                              106
       shares, respectively, issued and outstanding

    Additional paid-in capital                                                                                                                             4,429,240                        4,399,961

    Distributions in excess of accumulated earnings                                                                                                      (1,017,901)                       (894,137)

    Deferred compensation obligation                                                                                                                          46,711                           50,222

    Accumulated other comprehensive loss                                                                                                                   (229,581)                       (254,485)

    Total stockholders' equity                                                                                                                             3,228,576                        3,301,667

    Noncontrolling interests                                                                                                                                 221,373                          123,473
                                                                                                                                                             -------                          -------

    Total equity                                                                                                                                           3,449,949                        3,425,140

      Total liabilities and equity                                                                                                                                   $8,334,411                       $8,453,954
                                                                                                                                                                     ==========                       ==========


    ________


    (a)               Includes $82.1 million and $81.7
                      million of amounts attributable to
                      operating properties as of September
                      30, 2017 and December 31, 2016,
                      respectively.

    (b)               At September 30, 2017, we had one
                      property classified as Assets held
                      for sale. At December 31, 2016, we
                      had one property classified as
                      Assets held for sale, which was sold
                      during the nine months ended
                      September 30, 2017.

    (c)               Includes $593.9 million and $484.4
                      million of accumulated depreciation
                      on buildings and improvements as of
                      September 30, 2017 and December 31,
                      2016, respectively, and $655.1
                      million and $534.4 million of
                      accumulated amortization on lease
                      intangibles as of September 30, 2017
                      and December 31, 2016, respectively.

    (d)               Our equity investments in the Managed
                      Programs totaled $187.6 million and
                      $160.8 million as of September 30,
                      2017 and December 31, 2016,
                      respectively. Our equity investments
                      in real estate joint ventures totaled
                      $140.0 million and $138.1 million as
                      of September 30, 2017 and December
                      31, 2016, respectively.


                                                                                                W. P. CAREY INC.
                                                                            Quarterly Consolidated Statements of Income (Unaudited)
                                                                               (in thousands, except share and per share amounts)


                                                                                                                                                     Three Months Ended

                                                                                                                         September 30, 2017           June 30, 2017                September 30, 2016
                                                                                                                         ------------------           -------------                ------------------

    Revenues

    Owned Real Estate:

      Lease revenues                                                                                                                        $161,511                                                  $158,255             $163,786

      Operating property revenues                                                                                                     8,449                                  8,223                                   8,524

      Reimbursable tenant costs                                                                                                       5,397                                  5,322                                   6,537

      Lease termination income and other                                                                                              1,227                                  2,247                                   1,224
                                                                                                                                      -----                                  -----                                   -----

                                                                                                                                    176,584                                174,047                                 180,071
                                                                                                                                    -------                                -------                                 -------

    Investment Management:

      Asset management revenue                                                                                                       17,938                                 17,966                                  15,978

      Structuring revenue                                                                                                             9,817                                 14,330                                  12,301

      Reimbursable costs from affiliates                                                                                              6,211                                 13,479                                  14,540

      Dealer manager fees                                                                                                               105                                  1,000                                   1,835

      Other advisory revenue                                                                                                             99                                    706                                     522
                                                                                                                                        ---

                                                                                                                                     34,170                                 47,481                                  45,176
                                                                                                                                     ------                                 ------                                  ------

                                                                                                                                    210,754                                221,528                                 225,247
                                                                                                                                    -------                                -------                                 -------

    Operating Expenses

    Depreciation and amortization                                                                                                    64,040                                 62,849                                  62,802

    General and administrative                                                                                                       17,236                                 17,529                                  15,733

    Reimbursable tenant and affiliate costs                                                                                          11,608                                 18,801                                  21,077

    Property expenses, excluding reimbursable tenant costs                                                                           10,556                                 10,530                                  10,193

    Subadvisor fees (a)                                                                                                               5,206                                  3,672                                   4,842

    Stock-based compensation expense                                                                                                  4,635                                  3,104                                   4,356

    Restructuring and other compensation (b)                                                                                          1,356                                  7,718                                       -

    Dealer manager fees and expenses                                                                                                    462                                  2,788                                   3,028

    Other expenses (c)                                                                                                                   65                                  1,000                                       -

    Impairment charges                                                                                                                    -                                     -                                 14,441

                                                                                                                                    115,164                                127,991                                 136,472
                                                                                                                                    -------                                -------                                 -------

    Other Income and Expenses

    Interest expense                                                                                                               (41,182)                              (42,235)                               (44,349)

    Equity in earnings of equity method investments in the Managed Programs                                                          16,318                                 15,728                                  16,803

       and real estate

    Other income and (expenses)                                                                                                     (4,569)                                 (916)                                  5,101
                                                                                                                                     ------                                   ----                                   -----

                                                                                                                                   (29,433)                              (27,423)                               (22,445)
                                                                                                                                    -------                                -------                                 -------

    Income before income taxes and gain on sale of real estate                                                                       66,157                                 66,114                                  66,330

    Provision for income taxes                                                                                                      (1,760)                               (2,448)                                (3,154)
                                                                                                                                     ------                                 ------                                  ------

    Income before gain on sale of real estate                                                                                        64,397                                 63,666                                  63,176

    Gain on sale of real estate, net of tax                                                                                          19,257                                  3,465                                  49,126


    Net Income                                                                                                                       83,654                                 67,131                                 112,302

    Net income attributable to noncontrolling interests                                                                             (3,376)                               (2,813)                                (1,359)

    Net Income Attributable to W. P. Carey                                                                                                   $80,278                                                   $64,318             $110,943
                                                                                                                                             =======                                                   =======             ========


    Basic Earnings Per Share                                                                                                                   $0.74                                                     $0.60                $1.03
                                                                                                                                               =====                                                     =====                =====

    Diluted Earnings Per Share                                                                                                                 $0.74                                                     $0.59                $1.03
                                                                                                                                               =====                                                     =====                =====

    Weighted-Average Shares Outstanding

    Basic                                                                                                                       108,019,292                            107,668,218                             107,221,668

    Diluted                                                                                                                     108,143,694                            107,783,204                             107,468,029


    Distributions Declared Per Share                                                                                                         $1.0050                                                   $1.0000              $0.9850
                                                                                                                                             =======                                                   =======              =======


                                                W. P. CAREY INC.
                           Year-to-Date Consolidated Statements of Income (Unaudited)
                               (in thousands, except share and per share amounts)


                                                    Nine Months Ended September 30,

                                                    2017                     2016
                                                    ----                     ----

    Revenues

    Owned Real Estate:

      Lease
       revenues                                             $475,547                            $506,358

       Operating
       property
       revenues                                   23,652                                 23,696

       Reimbursable
       tenant
       costs                                      15,940                                 19,237

      Lease
       termination
       income
       and
       other
       (d)                                         4,234                                 34,603
                                                   -----                                 ------

                                                 519,373                                583,894
                                                 -------                                -------

    Investment Management:

      Asset
       management
       revenue                                    53,271                                 45,596

       Reimbursable
       costs
       from
       affiliates                                 45,390                                 46,372

       Structuring
       revenue                                    27,981                                 30,990

      Dealer
       manager
       fees                                        4,430                                  5,379

      Other
       advisory
       revenue                                       896                                    522


                                                 131,968                                128,859
                                                 -------                                -------

                                                 651,341                                712,753
                                                 -------                                -------

    Operating Expenses

     Depreciation
     and
     amortization                                189,319                                213,835

     Reimbursable
     tenant
     and
     affiliate
     costs                                        61,330                                 65,609

     General
     and
     administrative                               53,189                                 58,122

     Property
     expenses,
     excluding
     reimbursable
     tenant
     costs                                        31,196                                 38,475

    Stock-
     based
     compensation
     expense                                      14,649                                 14,964

     Subadvisor
     fees
     (a)                                          11,598                                 10,010

     Restructuring
     and
     other
     compensation
     (b)                                           9,074                                 11,925

    Dealer
     manager
     fees
     and
     expenses                                      6,544                                  9,000

    Other
     expenses
     (c)
     (e)                                           1,138                                  5,359

     Impairment
     charges                                           -                                49,870

                                                 378,037                                477,169
                                                 -------                                -------

    Other Income and
     Expenses

     Interest
     expense                                   (125,374)                             (139,496)

    Equity
     in                                       real
     earnings                                 estate
     of
     equity
     method
     investments
     in the
     Managed
     Programs
     and                                          47,820                                 48,243

    Other
     income
     and
     (expenses)                                  (4,969)                                 9,398
                                                  ------                                  -----

                                                (82,523)                              (81,855)
                                                 -------                                -------

    Income
     before
     income
     taxes
     and
     gain
     on
     sale
     of
     real
     estate                                      190,781                                153,729

     (Provision
     for)
     benefit
     from
     income
     taxes                                       (2,903)                                 4,538
                                                  ------                                  -----

    Income
     before
     gain
     on
     sale
     of
     real
     estate                                      187,878                                158,267

    Gain
     on
     sale
     of
     real
     estate,
     net
     of
     tax                                          22,732                                 68,070

    Net
     Income                                      210,610                                226,337

    Net
     income
     attributable
     to
     noncontrolling
     interests                                   (8,530)                               (6,294)

    Net
     Income
     Attributable
     to W.
     P.
     Carey                                                  $202,080                            $220,043
                                                            ========                            ========


    Basic
     Earnings
     Per
     Share                                                     $1.87                               $2.06
                                                               =====                               =====

     Diluted
     Earnings
     Per
     Share                                                     $1.87                               $2.05
                                                               =====                               =====

    Weighted-Average
     Shares Outstanding

    Basic                                    107,751,672                            106,493,145

    Diluted                                  107,947,490                            106,853,174


     Distributions
     Declared
     Per
     Share                                                   $3.0000                             $2.9392
                                                             =======                             =======


    __________


    (a)               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. In connection
                      with the acquisitions of multi-
                      family properties on behalf of
                      CPA(R):18 - Global, we entered into
                      agreements with third-party advisors
                      for the day-to-day management of
                      the properties for which we pay 100%
                      of asset management fees paid to us
                      by CPA(R):18 - Global. Pursuant to
                      the terms of the subadvisory
                      agreement we had with the subadvisor
                      in connection with CCIF (prior to our
                      resignation as the advisor to CCIF in
                      the third quarter of 2017), we paid a
                      subadvisory fee equal to 50% of the
                      asset management fees and
                      organization and offering costs paid
                      to us by CCIF.

    (b)               Amounts for the three months ended
                      September 30, 2017, three months
                      ended June 30, 2017 and nine months
                      ended September 30, 2017 represent
                      restructuring expenses resulting from
                      our exit from all non-traded retail
                      fundraising activities, which we
                      announced in June 2017. Amount for
                      the nine months ended September 30,
                      2016 represents restructuring and
                      other compensation-related expenses
                      resulting from a reduction in
                      headcount and employee severance
                      arrangements, primarily in connection
                      with the reduction in force that we
                      completed in March 2016.

    (c)               Amounts for the three months ended
                      June 30, 2017 and nine months ended
                      September 30, 2017 are primarily
                      comprised of an accrual for
                      estimated one-time legal settlement
                      expenses.

    (d)               Amount for the nine months ended
                      September 30, 2016 includes $32.2
                      million of lease termination income
                      related to a domestic property sold
                      during that period.

    (e)               Amount for the nine months ended
                      September 30, 2016 reflects expenses
                      related to our formal strategic
                      review, which was completed in May
                      2016.



                                                                                                                          W. P. CAREY INC.
                                                                                    Quarterly Reconciliation of Net Income to Adjusted Funds from Operations (AFFO) (Unaudited)
                                                                                                         (in thousands, except share and per share amounts)


                                                                                                                                                                                         Three Months Ended

                                                                                                                                                        September 30, 2017                June 30, 2017                September 30, 2016
                                                                                                                                                        ------------------                -------------                ------------------

    Net income attributable to W. P. Carey                                                                                                                                       $80,278                                                   $64,318             $110,943

    Adjustments:

      Depreciation and amortization of real property                                                                                                                62,621                                      61,636                                  61,396

      Gain on sale of real estate, net                                                                                                                            (19,257)                                    (3,465)                               (49,126)

      Impairment charges                                                                                                                                                 -                                          -                                 14,441

      Proportionate share of adjustments for noncontrolling interests to arrive at                                                                                 (2,692)                                    (2,562)                                (3,254)
        FFO

      Proportionate share of adjustments to equity in net income of partially owned                                                                                    866                                         833                                   1,354
        entities to arrive at FFO


    Total adjustments                                                                                                                                               41,538                                      56,442                                  24,811
                                                                                                                                                                    ------                                      ------                                  ------

    FFO Attributable to W. P. Carey (as defined by NAREIT) (a)                                                                                                     121,816                                     120,760                                 135,754
                                                                                                                                                                   -------                                     -------                                 -------

    Adjustments:

      Above- and below-market rent intangible lease amortization, net                                                                                               12,459                                      12,323                                  12,564

      Other amortization and non-cash items (b) (c)                                                                                                                  6,208                                       6,693                                 (4,897)

      Stock-based compensation                                                                                                                                       4,635                                       3,104                                   4,356

      Straight-line and other rent adjustments                                                                                                                     (3,212)                                    (2,965)                                (5,116)

      Amortization of deferred financing costs                                                                                                                       2,184                                       2,542                                   1,007

      Loss (gain) on extinguishment of debt                                                                                                                          1,566                                     (2,443)                                  2,072

      Restructuring and other compensation (d)                                                                                                                       1,356                                       7,718                                       -

      Tax benefit - deferred                                                                                                                                       (1,234)                                    (1,382)                                (2,999)

      Realized (gains) losses on foreign currency                                                                                                                    (449)                                      (378)                                  1,559

      Other expenses (e)                                                                                                                                                65                                       1,000                                       -

      Proportionate share of adjustments to equity in net income of partially owned                                                                                  3,064                                       1,978                                     261
        entities to arrive at AFFO

      Proportionate share of adjustments for noncontrolling interests to arrive at                                                                                   (216)                                      (513)                                   (90)
        AFFO


    Total adjustments                                                                                                                                               26,426                                      27,677                                   8,717
                                                                                                                                                                    ------                                      ------                                   -----

    AFFO Attributable to W. P. Carey (a)                                                                                                                                        $148,242                                                  $148,437             $144,471
                                                                                                                                                                                ========                                                  ========             ========


    Summary

    FFO attributable to W. P. Carey (as defined by NAREIT) (a)                                                                                                                  $121,816                                                  $120,760             $135,754

    FFO attributable to W. P. Carey (as defined by NAREIT) per diluted share (a)                                                                                                   $1.13                                                     $1.12                $1.26

    AFFO attributable to W. P. Carey (a)                                                                                                                                        $148,242                                                  $148,437             $144,471

    AFFO attributable to W. P. Carey per diluted share (a)                                                                                                                         $1.37                                                     $1.38                $1.34

    Diluted weighted-average shares outstanding                                                                                                                108,143,694                                 107,783,204                             107,468,029


                                                                                                                                             W. P. CAREY INC.
                                                                                                      Year-to-Date Reconciliation of Net Income to Adjusted Funds from Operations (AFFO) (Unaudited)
                                                                                                                            (in thousands, except share and per share amounts)


                                                                                                                                                                                                            Nine Months Ended September 30,

                                                                                                                                                                                                            2017                     2016
                                                                                                                                                                                                            ----                     ----

    Net income attributable to W. P. Carey                                                                                                                                                                          $202,080                            $220,043

    Adjustments:

      Depreciation and amortization of real property                                                                                                                                                     185,439                                209,449

      Gain on sale of real estate, net                                                                                                                                                                  (22,732)                              (68,070)

      Impairment charges                                                                                                                                                                                       -                                49,870

      Proportionate share of adjustments for noncontrolling interests to arrive at FFO                                                                                                                   (7,795)                               (8,541)

      Proportionate share of adjustments to equity in net income of partially-owned entities to arrive at FFO                                                                                              4,416                                  3,994
                                                                                                                                                                                                           -----                                  -----

     Total adjustments                                                                                                                                                                                   159,328                                186,702
                                                                                                                                                                                                         -------                                -------

    FFO Attributable to W. P. Carey (as defined by NAREIT) (a)                                                                                                                                           361,408                                406,745
                                                                                                                                                                                                         -------                                -------

    Adjustments:

      Above- and below-market rent intangible lease amortization, net (f)                                                                                                                                 37,273                                 23,851

      Other amortization and non-cash items (b) (c)                                                                                                                                                       14,995                                (7,695)

      Stock-based compensation                                                                                                                                                                            14,649                                 14,964

      Straight-line and other rent adjustments (g)                                                                                                                                                       (9,677)                              (34,262)

      Restructuring and other compensation (d)                                                                                                                                                             9,074                                 11,925

      Tax benefit - deferred                                                                                                                                                                             (8,167)                              (22,522)

      Amortization of deferred financing costs                                                                                                                                                             6,126                                  2,271

      Other expenses (e) (h)                                                                                                                                                                               1,138                                  5,359

      Realized (gains) losses on foreign currency                                                                                                                                                          (424)                                 2,569

      Loss on extinguishment of debt                                                                                                                                                                          35                                  3,885

      Allowance for credit losses                                                                                                                                                                              -                                 7,064

      Proportionate share of adjustments to equity in net income of partially-owned entities to arrive at                                                                                                  5,592                                    741
        AFFO

      Proportionate share of adjustments for noncontrolling interests to arrive at AFFO                                                                                                                  (1,105)                                 1,278
                                                                                                                                                                                                          ------                                  -----

     Total adjustments                                                                                                                                                                                    69,509                                  9,428
                                                                                                                                                                                                          ------                                  -----

    AFFO Attributable to W. P. Carey (a)                                                                                                                                                                            $430,917                            $416,173
                                                                                                                                                                                                                    ========                            ========


    Summary

    FFO attributable to W. P. Carey (as defined by NAREIT) (a)                                                                                                                                                      $361,408                            $406,745

    FFO attributable to W. P. Carey (as defined by NAREIT) per diluted share (a)                                                                                                                                       $3.35                               $3.81

    AFFO attributable to W. P. Carey (a)                                                                                                                                                                            $430,917                            $416,173

    AFFO attributable to W. P. Carey per diluted share (a)                                                                                                                                                             $3.99                               $3.89

    Diluted weighted-average shares outstanding                                                                                                                                                      107,947,490                            106,853,174


    __________


    (a)               FFO and AFFO are non-GAAP measures. See
                      below for a description of FFO and
                      AFFO.

    (b)               Represents primarily unrealized gains
                      and losses from foreign exchange and
                      derivatives.

    (c)               Amounts for the three and nine months
                      ended September 30, 2016 include an
                      adjustment of $0.6 million to exclude a
                      portion of a gain recognized on the
                      deconsolidation of an affiliate.

    (d)               Amounts for the three months ended
                      September 30, 2017, three months ended
                      June 30, 2017 and nine months ended
                      September 30, 2017 represent
                      restructuring expenses resulting from
                      our exit of all non-traded retail
                      fundraising activities, which we
                      announced in June 2017. Amount for the
                      nine months ended September 30, 2016
                      represents restructuring and other
                      compensation-related expenses
                      resulting from a reduction in headcount
                      and employee severance arrangements,
                      primarily in connection with the
                      reduction in force that we completed in
                      March 2016.

    (e)               Amounts for the three months ended June
                      30, 2017 and nine months ended
                      September 30, 2017 are primarily
                      comprised of an accrual for estimated
                      one-time legal settlement expenses.

    (f)               Amount for the nine months ended
                      September 30, 2016 includes an
                      adjustment of $15.6 million due to the
                      acceleration of a below-market lease
                      from a tenant of a domestic property
                      that was sold during that period.

    (g)               Amount for the nine months ended
                      September 30, 2016 includes an
                      adjustment to exclude $27.2 million of
                      the $32.2 million of lease termination
                      income recognized in connection with a
                      domestic property that was sold during
                      that period, as such amount was
                      determined to be non-core income.
                      Amount for the nine months ended
                      September 30, 2016 also reflects an
                      adjustment to include $1.8 million of
                      lease termination income received in
                      December 2015 that represented core
                      income for the nine months ended
                      September 30, 2016.

    (h)               Amount for the nine months ended
                      September 30, 2016 reflects expenses
                      related to our formal strategic
                      review, which was completed in May
                      2016.

Non-GAAP Financial Disclosure

Due to certain unique operating characteristics of real estate companies, as discussed below, the National Association of Real Estate Investment Trusts, Inc., or 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 revised in February 2004. 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, 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. Our FFO calculation complies with NAREIT's policy described above.

We modify the NAREIT computation of FFO to include other adjustments to GAAP net income to adjust for certain non-cash charges such as amortization of real estate-related intangibles, deferred income tax benefits and expenses, straight-line rents, stock compensation, gains or losses from extinguishment of debt and deconsolidation of subsidiaries, and unrealized foreign currency exchange gains and losses. Our assessment of our operations is focused on long-term sustainability and not on such non-cash items, which may cause short-term fluctuations in net income but have no impact on cash flows. Additionally, we exclude non-core income and expenses such as certain lease termination income, restructuring and other compensation-related expenses resulting from a reduction in headcount and employee severance arrangements and other expenses (which includes expenses related to the formal strategic review that we completed in May 2016 and accruals for estimated one-time legal settlement expenses). We also exclude realized gains/losses on foreign 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 which are currently not engaged in acquisitions, mergers and restructuring which are not part of our normal business operations. We use AFFO as one measure of our operating performance when we formulate corporate goals, evaluate the effectiveness of our strategies, and determine executive compensation.

We believe that AFFO is a useful supplemental measure for investors to consider 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 earnings computed under GAAP or as alternatives to cash from operating activities computed under GAAP or as indicators of our ability to fund our cash needs.

Institutional Investors:
Peter Sands
W. P. Carey Inc.
212-492-1110
institutionalir@wpcarey.com

Individual Investors:
W. P. Carey Inc.
212-492-8920
ir@wpcarey.com

Press Contact:
Guy Lawrence
Ross & Lawrence
212-308-3333
gblawrence@rosslawpr.com

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SOURCE W. P. Carey Inc.