W. P. Carey
Annual Report 2017

Plain-text annual report

2017 Annual Report 45 Years of Investing for the Long Run® Net lease investing focus Disciplined acquisition strategy Proactive asset management A history of Doing Good While Doing Well® A constant for 45 years Dear Fellow Shareholders, 2018 marks a number of milestones for W. P. Carey: our 45th anniversary, our 20th year as a public company, our 20th year of delivering rising dividend income to shareholders, and, for me personally, my first year as CEO. Over my 16-year career at W. P. Carey, I have been closely involved in building the portfolio of net lease assets we own today, and I am proud to have been part of the company’s evolution into one of the leading diversified net lease REITs. This has afforded me a unique perspective. In this year’s letter I am excited to explore our recent accomplishments and future direction, building on the core investment principles that have guided us throughout our history of Investing for the Long Run. Our Perspective W. P. Carey was a pioneer of net lease investing and today ranks among the largest and foremost REITs operating in this space. We see virtually every investment opportunity brought to market and many that are not, providing unparalleled insight. Given this vantage point, I believe we will look back at 2017 as a period of peak pricing for the current cycle. The sustained strength of commercial real estate markets in both the U.S. and Europe positively impacted the value of our existing portfolio and provided a favorable environment for dispositions. In light of that, and adhering to our underwriting discipline, we elected to be a net seller for the year. Looking ahead, we expect sellers to become more motivated, allowing buyers to regain some leverage. Coupled with the outlook for higher interest rates, we anticipate a more favorable acquisition environment over the near to medium term and as a result, we expect to be a net acquirer in 2018. Furthermore, we believe the limitations on the deductibility of interest as compared to the full deductibility of rental expense in the recent U.S. tax reform act will support corporate sale-leaseback activity, which often competes with debt financing. Our Approach We focus on assets that have critical importance to our tenants’ businesses. Our investments are originated primarily through sale-leaseback and build-to-suit transactions, augmented by opportunities sourced from within our portfolio. Like other real estate investors, evaluating the fundamental value of the underlying real estate is central to our established process. Our expertise in credit underwriting and our ability to perform in-depth analysis of each tenant’s business, industry position and financial health enable us to source, evaluate and invest in a wide array of opportunities. Our ability to execute on more complex transactions distinguishes us from other net lease investors, driving more meaningful yield spreads and significant value creation through the lease structure itself, including longer lease terms, stronger financial covenants when warranted and superior rent escalations. I continue to believe in the importance of internally generated growth. By concentrating our investments outside of the commodity segment of net lease, we have been able to structure inflation-based rent escalations and attractive fixed rent increases into our leases. This is especially valuable during periods of rising inflation. Compared to prior years, inflation picked up in both the U.S. and Europe, which was reflected in our same-store rent growth. Looking ahead, the outlook for global economic growth and declining unemployment suggest that inflation will continue to rise. Among net lease REITs we have one of the highest percentages of annualized base rent coming from leases tied to CPI, thereby ensuring we are among the best positioned to benefit from higher inflation. Diversification has long been a distinguishing characteristic of W. P. Carey’s approach, and having spent my career investing in commercial real estate, I firmly believe in its benefits for the net lease asset class. In addition to insulating the portfolio from disruptions in one area of the market, diversification expands our opportunity set and enables us to direct our investments to the most attractive risk–reward opportunities. Over multiple real estate cycles, we have been a prudent allocator of capital, adjusting our portfolio composition by proactively selling into strength when we believe markets are mispriced and buying into weakness when we see opportunity. 2017 Annual Report | 1 back from regions like Southeast Asia, where we lack a path to scale. Over the near term, we plan to exit additional non-core investments to further refine our geographic focus on North America and Europe. Our investment and asset management activity does not happen in a vacuum. We constantly look to the other side of our balance sheet to assess our ability to access various forms of capital, with particular focus on ensuring we have the appropriate flexibility and liquidity to take advantage of future investment opportunities at an advantageous cost of capital. During 2017, we successfully executed a €500-million eurobond issuance and renewed our credit facility, extending the vast majority of our debt maturities to 2021 and beyond. Since year-end we have issued an additional Rent Escalations* 99% of our leases have contractual rent increases, and 68% are tied to CPI, positioning us well for a higher inflationary environment 43% Inflatio n - li n k e d 1% 4% 25% 27% Uncapped CPI (43%) CPI-based (25%) Fixed (27%) Other (4%) None (1%) *Based on contractual minimum ABR. Total Return Since going public in 1998, W. P. Carey has significantly outpaced REIT indices and the broader markets During 2017, disruption to traditional retailers in the U.S. continued, validating the benefits of diversification as well as our long-held belief that the market is oversaturated by the commodity segment of retail real estate. By proactively managing our exposure and selling the majority of our U.S. big-box retail assets in 2011, we have maintained an underweight allocation to retail, with negligible exposure to high-risk properties. Since then, we have allocated capital in the U.S. towards more attractive risk–reward investments in the warehouse and industrial sectors. In Europe, which has higher barriers to development, our focus in the retail sector has been on tenants insulated from e-commerce disruption, such as DIY retailers and auto dealerships, reducing our risk. Unlike many net lease REITs, proactive asset management is central to W. P. Carey’s approach, enabling us to stay well ahead of lease expirations and providing additional opportunities for internally driven growth. In a year during which we opted to be less active as a buyer, we were able to maintain a weighted average lease term of close to ten years and to achieve strong rent recapture with minimal capital expenditure. We also reduced our near-term lease expirations and further lowered vacant space, ending the year at close to full occupancy. Given the size and composition of our portfolio, proactive asset management has also provided us with a meaningful pool of follow-on investment opportunities through which we are able to create significant value by investing discretionary capital into existing assets. Such deals often offer above-market yields and enhance overall portfolio quality by extending lease term, modernizing assets and increasing criticality. Building Long-Term Shareholder Value In addition to our investment and asset management activities, we are building a more valuable company by refining our focus and simplifying our business. The most significant development for W. P. Carey during 2017 was our strategic decision to exit retail fundraising activities, manage the programs through their natural liquidity cycle and ultimately exit the investment management business altogether. All net lease transactions are now exclusively available for our balance sheet, and our business continues to move towards more predictable and higher-quality income streams. Equally important, the narrative surrounding the company has been clarified and simplified—something we expect to further benefit our cost of capital over time—thereby enhancing our ability to grow earnings through accretive investments. We have made meaningful and sustainable reductions to our cost structure over the last two years through the elimination of costs associated with non-traded retail fundraising activities and a heightened focus on operational efficiencies across the firm. We have also continued to streamline our business by opportunistically divesting non-core investments and pulling €500 million of eurobonds at an attractive rate, which has minimized our exposure to floating-rate debt and increased our natural hedge on euro-denominated income and investments. We have managed our balance sheet conservatively and remain committed to maintaining our investment grade ratings. Our credit profile has continued to improve by steadily replacing mortgage loans with unsecured debt. We have a well-laddered series of debt maturities and minimal floating-rate debt, thereby limiting our exposure to near-term interest rate volatility. Furthermore, with ample liquidity and a sizable dispositions pipeline we have the flexibility to make new investments without an immediate need to issue equity. Reflecting the advancements we made during 2017, we increased both our AFFO and dividends while maintaining a conservative payout ratio. AFFO per diluted share increased to $5.30, and dividends declared totaled $4.01 per share. Our results demonstrate our commitment to maximizing long-term shareholder value as we increased earnings while improving the quality of our portfolio and the composition of our revenue streams. Our shareholders earned a total return of 23.9% for the year, significantly outperforming the MSCI US REIT Index and our direct net lease peers. Looking ahead to 2018 and beyond, we remain focused on our primary goal of maximizing recurring revenues and sustainable cash flow to enhance shareholder value. Today, we are a stronger, leaner and more focused company with a history of long-term performance and commitment to delivering superior risk-adjusted returns for our shareholders. In Closing In conjunction with the evolution of our business, our ongoing commitment to Doing Good While Doing Well, established by our founder Wm. Polk Carey, helps enhance and improve our local communities and shared environment. As part of our larger corporate responsibility, we strive to address the environmental and sustainability needs of our tenants and the communities in which we operate as well as the overall wellness of our employees. We are dedicated to supporting educational programs, hospitals, museums and other community organizations as a company and through our Carey Forward program, which encourages employees to become involved in philanthropic and charitable activities. I would like to take this opportunity to recognize my predecessor, Mark DeCesaris, for his leadership in guiding the company through its recent period of evolution and his many contributions to W. P. Carey throughout his 12-year tenure. I would also like to acknowledge and thank our Board of Directors for their valuable guidance and oversight. Over the course of my career, I have been keenly focused on investments for our portfolio of real estate assets. However, I recognize that the company’s most important assets walk in the door each morning. I’m privileged to lead the team of exceptional people we have, and I feel fortunate to be part of the journey that Bill began 45 years ago. I can’t think of a more exciting time in our history to be leading W. P. Carey. With best regards, Annual Dividends W. P. Carey has a 20-year history of dividend increases Jason E. Fox Chief Executive Officer $1.96  $2.44  $4.01  WPC MSCI US REIT Index S&P 500 453% 301% 1,024% $1.65  $1.73  Total return from January 21, 1998, through market close December 31, 2017. Reflects the reinvestment of all dividends. Past performance is not a guarantee of future results. Annual dividend per share reflects sum of quarterly dividends per share for the respective year. 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2 | W. P. Carey Inc. 2017 Annual Report | 3 Celebrating our 45-year history W. P. Carey & Co., Inc. founded by Wm. Polk Carey and pioneers pooled net lease assets to investors W. P. Carey provides first LBO sale-leaseback financing for William E. Simon’s acquisition of Gibson Greetings London investment office opens, establishing the company’s European presence 1973 1982 1999 “As we celebrate 45 years of Investing for the Long Run, we also honor the lifelong commitment of our founder, Wm. Polk Carey, to Doing Good While Doing Well. His vision continues to guide us in fulfilling the objectives of our shareholders as well as our employees, our tenants and the communities in which we operate.” —Jason E. Fox, CEO 4 | W. P. Carey Inc. 2017 Annual Report | 5 1979 1998 2000 CPA® series of investment programs begins, and W. P. Carey institutes independent Investment Committee led by Equitable Life Assurance executive George Stoddard to review all transactions Carey Diversified LLC created from CPA®1-9 and begins trading on the NYSE (NYSE:CDC) W. P. Carey & Co. LLC (NYSE:WPC) created from the merger of Carey Diversified LLC and W. P. Carey & Co., Inc. What began as an innovative investment firm in 1973 has evolved into one of today’s leading diversified net lease REITs, with an enterprise value of more than $11.5 billion. The W. P. Carey Foundation endows the W. P. Carey School of Business at Arizona State University, which quickly becomes internationally ranked Amsterdam office opens, establishing a European asset management team to oversee the company’s growing European footprint The W. P. Carey Foundation donates $30 million to the University of Maryland School of Law to establish the Francis King Carey School of Law W. P. Carey receives investment grade corporate ratings from Moody’s and S&P W. P. Carey merges with CPA®:16 – Global W. P. Carey increases its quarterly dividend to $1.00 per share Consistent with its ongoing strategy of replacing mortgage debt with unsecured borrowings, W. P. Carey broadens its access to public markets with its inaugural U.S. bond offering W. P. Carey announces initial common stock offering 2003 2008 2011 2014 2017 2006 2009 The W. P. Carey Foundation donates $50 million to Johns Hopkins University to establish the Carey Business School In the wake of the 2008 financial crisis, W. P. Carey remains a steady source of capital, providing more than $540 million of sale-leaseback financing for companies in the U.S. and Europe at a time when other sources are unavailable 2012 The company mourns the loss of its founder, Wm. Polk Carey, who passes away at the age of 81 W. P. Carey & Co. LLC merges with CPA®:15 and becomes a publicly traded REIT (NYSE:WPC) 6 | W. P. Carey Inc. 2015 2018 W. P. Carey expands its access to public markets with its inaugural eurobond offering W. P. Carey celebrates 45 years of Investing for the Long Run, 20 years as a publicly listed company on the NYSE and 20 years of investing in Europe 2017 Annual Report | 7 2017 Portfolio Overview Our commitment to a diversified portfolio of high-quality real estate and our differentiated net lease strategy have afforded us greater opportunities to grow our annualized base rent while maintaining high occupancy levels and a nearly ten-year weighted average lease term. $681 million in annualized base rent 99% of leases with contractual rent increases 9.6 years weighted average lease term 887 net lease properties 8 | W. P. Carey Inc. 2017 Annual Report | 9 Our Portfolio Strategy enables us to achieve superior risk-adjusted returns through our disciplined acquisition approach and proactive asset management. Portfolio Value-Add Initiatives Capitalizing on opportunities in diverse markets and industries We continue to improve portfolio quality by securing long-term net lease assets that meet our investment criteria, repositioning existing assets through re-leasing and restructuring, and taking advantage of market opportunities for strategic dispositions and capital recycling. In 2017, we continued to optimize our portfolio by taking advantage of frothy markets to execute dispositions and selectively acquire new assets, ending the year as a net seller. Our access to a diverse set of market opportunities allowed us to improve the quality of our portfolio and cash flow. Disciplined Acquisition Approach Directly Sourced Sale-Leasebacks and Build-to-Suit Transactions Proactive Asset Management Opportunistic Investments with Existing Tenants Four Key Criteria • Fundamental value of real estate • Transaction structure and pricing • Creditworthiness of tenant • Criticality of asset to tenant’s business • Lease extensions • Expansions and build-to-suits • Renovations and redevelopments • Follow-on deals Adhering to our disciplined acquisition approach We stayed disciplined in our underwriting and did not chase deals for the sake of short-term earnings growth when we did not have conviction in their long-term value and risk–return characteristics. Proactively managing our owned real estate portfolio We continued to proactively manage our owned real estate portfolio throughout the year, making value-add investments with existing tenants, maintaining high portfolio occupancy rates and extending our weighted average lease term. 10 | W. P. Carey Inc. 2017 Annual Report | 11 Our 2017 Portfolio Activity reflects our established acquisitions discipline and our ability to add value through proactive asset management of our existing assets. Astellas* Ontex Gestamp IDS Manufacturing Veritas Technologies AutoNation Proactive Repositioning: Build-to-Suit Investment: Property Expansion: Strategic Disposition: New Acquisition: Opportunity to fund up to $56 million to convert an existing office building into a state-of-the-art life sciences facility for a new tenant Outcome: Created substantial value from a new 18-year, triple-net lease with annual rent escalations with a wholly owned subsidiary of an investment grade Japanese pharmaceutical company Property at a Glance: Tenant: Astellas Institute for Regenerative Medicine Location: Massachusetts Upon completion: Property Type: Life sciences facility Lease Term: 18-year, triple-net lease with annual fixed rent escalations with a new tenant Size: 270,000 square feet *Photo is an artistic rendering and is subject to change. Opportunity to capitalize on our presence and capabilities in Europe to provide build-to-suit financing for a critical, modern and strategic industrial facility located in a growing market Outcome: Secured a long-term net lease with annual rent escalations with a leading global supplier of personal hygiene products Property at a Glance: Tenant: Ontex Closing Date: November 2017 Purchase Price: $16 million Location: Poland Property Type: Industrial Lease Term: 15-year, triple-net lease with annual CPI-based rent escalations, upon completion Size: 281,000 square feet Opportunity to provide build-to-suit financing for a strategic new facility to meet existing tenant’s expansion and growth requirements Outcome: Completed construction in May 2017 and secured a new lease with annual rent escalations, which extended the original lease term by 8.75 years. Expansion added asset capacity and criticality, generating accretive cash flow and improved overall renewal likelihood Property at a Glance: Tenant: Gestamp Location: Alabama Property Type: Auto parts manufacturing facility Lease Term: 20-year, triple-net lease with annual CPI-based rent escalations with an existing tenant Size: 763,000 square feet Strategic market opportunity to exit three properties no longer aligned with our geographic focus on North America and Europe Outcome: Timely execution enabled properties to be sold at an attractive price, creating an opportunity to recycle capital into accretive investments, resulting in improved portfolio quality Properties at a Glance: Tenant: IDS Manufacturing Location: Malaysia and Thailand Property Type: Industrial (MY) and warehouse (TH) Size: 375,000 square feet (MY) and 773,000 square feet (TH) Opportunity to leverage corporate credit underwriting capabilities to assess sub-investment grade tenant and pursue an acquisition of a critical Class-A office in an established submarket leased to a portfolio company of a major private equity firm Outcome: Structured a long-term sale- leaseback with annual rent escalations for a leading information software and data management solutions company Property at a Glance: Tenant: Veritas Technologies Closing Date: November 2017 Purchase Price: $26 million Location: Minnesota Property Type: Office Lease Term: 15-year, triple-net lease with fixed annual rent escalations Size: 136,000 square feet Proactive Repositioning: Opportunity to proactively re-tenant an existing asset and replace a short remaining lease term with a long-term lease to an investment grade tenant Outcome: Secured a new long-term, triple-net lease with annual rent escalations for America’s largest auto retailer, resulting in a sizable rent increase with no landlord cap-ex, no downtime, continued cash flow and improved overall returns Property at a Glance: Tenant: AutoNation Location: Washington Upon completion: Property Type: Auto dealership Lease Term: 20-year, triple-net lease with annual CPI-based rent escalations with a new tenant Size: 143,000 square feet 12 | W. P. Carey Inc. 2017 Annual Report | 13 Our Portfolio Diversification offers a wider opportunity set for new acquisitions across geography, property type and tenant industry, thereby insulating us from local market disruptions while enabling us to invest in sectors with the most attractive long-term, risk-adjusted returns at any given time. Geographic Diversification* Property Type Diversification* Tenant Industry Diversification* Other (2%) e (30 %) p o r u E N orth A m e r i c a ( 6 8 % ) 10% 5% 14% 30% 17% 25% United States (65.9%) Canada (1.9%) Mexico (0.4%) Germany (8.6%) United Kingdom (5.1%) Spain (4.5%) Poland (2.7%) The Netherlands (2.3%) France (2.2%) Finland (1.9%) Norway (0.9%) Hungary (0.5%) Austria (0.5%) Sweden (0.4%) Belgium (0.3%) Other1 (1.9%) 1 Other includes assets in Australia and Japan. Industrial (29.7%) Office (25.0%) Retail (16.5%) Warehouse (14.0%) Self-Storage (4.7%) Other2 (10.1%) 2 Other includes ABR from tenants within the following property types: education facility, fitness facility, hotel, net lease student housing and theater. * Based on contractual minimum ABR. Numbers may not add up to 100% due to rounding. Retail Stores3 17.6% Consumer Services 10.5% Automotive 8.3% Sovereign and Public Finance 6.4% Construction and Building 5.4% Hotel, Gaming and Leisure 5.2% Beverage, Food and Tobacco 4.6% Cargo Transportation 4.3% Healthcare and Pharmaceuticals 4.2% High-Tech Industries 4.2% Containers, Packaging and Glass 4.0% Media: Advertising, Printing and Publishing 3.5% Capital Equipment 3.3% Business Services 2.1% Grocery 1.7% Durable Consumer Goods 1.7% Wholesale 1.6% Aerospace and Defense 1.6% Banking 1.5% Chemicals, Plastics and Rubber 1.4% Metals and Mining 1.4% Non-Durable Consumer Goods 1.2% Oil and Gas 1.2% Telecommunications 1.0% Other4 2.1% 3 4 Includes automotive dealerships. Includes ABR from tenants in the following industries: electricity, environmental industries, forest products and paper, insurance and media: broadcasting and subscription. 14 | W. P. Carey Inc. 2017 Annual Report | 15 Doing Good While Doing Well As we celebrate our 45th anniversary, we reflect proudly on our beginnings in 1973 and our evolution to one of today’s leading diversified net lease REITs. We remember our founder Wm. Polk Carey and honor his vision and values upon which our company was built and that continue to guide us today. His generosity, sense of duty and lifelong commitment to Doing Good While Doing Well and Investing for the Long Run are central to our corporate culture and our commitment to having a positive impact on the larger communities in which we live and operate. Bill Carey believed—as we do today —that our business by its very nature promotes prosperity, but he also believed that our responsibility did not end there. He understood that good corporate citizenship was fundamental to good business and to creating long-term value for our investors. Environmental, Social & Governance (ESG) integration is core to our founding principles. In 2017, as part of our ESG initiative, we introduced a tenant outreach program to encourage our 200+ tenants to join our sustainability efforts, providing education, ideas and support for property- level sustainability solutions. In addition, the health and wellness of our employees and their families are paramount to W. P. Carey. Through our comprehensive benefits package, we invest in the financial, physical and mental well-being of our employees. Furthermore, we are committed to maintaining effective corporate governance practices that promote and protect the long-term interests of our employees, shareholders and tenants. In 2017, we continued to enhance our governance structure to help strengthen our company and grow responsibly for all W. P. Carey stakeholders. 16 | W. P. Carey Inc. Charitable Giving is part of the fabric of W. P. Carey. In 2017, W. P. Carey supported numerous educational programs, hospitals and other community organizations, including: • Memorial Sloan Kettering Cancer Center • NewYork-Presbyterian • The Metropolitan Museum of Art • The Museum of Modern Art • The New York Botanical Garden • Wildlife Conservation Society Carey Forward was established in 2013 as a tribute to Bill Carey’s sense of philanthropic duty and passion for building and fostering productive relationships between our company and our communities. Through the program, employees are encouraged to participate in charitable activities, sharing their time, skills and enthusiasm with others. W. P. Carey employees help enhance and improve our communities through youth development, education, hunger relief, healthcare, arts and restoration. In 2017, Carey Forward supported the following organizations: • American Cancer Society • City Harvest • Hurricane-relief Efforts • New York Blood Center • Volunteers of America $50K raised for hurricane-relief efforts $14K raised for breast cancer awareness and research $10K $200K raised for City Harvest’s Skip Lunch Fight Hunger campaign against childhood hunger donated by W. P. Carey to support local museums, parks, hospitals and more “ Doing Good While Doing Well means that when we are financing properties for companies, we are also helping the communities those companies serve. It is important to always ask, ‘What is the impact of what we are doing? What is good for society? What is good for the country?’” —Wm. Polk Carey, Founder 2017 Annual Report | 17 Our 45 Years of Success is a result of the hard work and dedication of our employees. Corporate Information Our founder Wm. Polk Carey’s vision of Doing Good While Doing Well lives on through the more than 200 W. P. Carey employees around the world and their personal commitments to making a difference for our business and partners, local communities and beyond. Bill Carey always believed that in order to build a successful business, you had to build a successful team first with a range of diverse skills and backgrounds. Today, W. P. Carey employees represent more than 20 countries and speak more than 25 languages. We strive to create a diverse and challenging work environment where collaboration, outstanding effort and exceptional dedication are recognized and rewarded. Our employees shape our company, propel our success and connect us with our communities. Their hard work, integrity and talent form the foundation that has enabled us to create long-term value through our investments and philanthropy for 45 years. y n a p m o C n a g e n n e H e h T : g n i t n i r P ; n o s p o J d r a h c R i : y h p a r g o t o h p y r a m i r P ; y n a p m o C + i s g d O : i n g s e d d n a n o i t c e r i d e v i t a e r C Individual Investor Relations 1-800-WP CAREY (1-800-972-2739) ir@wpcarey.com Auditors PricewaterhouseCoopers LLP Form 10-K A copy of our Annual Report on Form 10-K as filed with the Securities and Exchange Commission may be obtained without charge at www.sec.gov by writing to our Executive Offices at the above address or by visiting our website at www.wpcarey.com. Trading Information Shares of W. P. Carey Inc. trade on the New York Stock Exchange under the ticker symbol WPC. Board of Directors Benjamin H. Griswold, IV Non-Executive Chairman of the Board & Chairman of the Executive Committee; Partner & Chairman of Brown Advisory, Inc. Christopher J. Niehaus Non-Executive Vice Chairman of the Board, Chairman of the Investment Committee & Chairman of the Nominating and Corporate Governance Committee; Partner, GreenOak Real Estate Jason E. Fox Chief Executive Officer Mark A. Alexander Chairman of the Audit Committee; Managing Member of Landmark Property Group, LLC Peter J. Farrell Chairman of the Compensation Committee; Partner, CityInterests, LLC Robert J. Flanagan President, Clark Enterprises Axel K.A. Hansing Partner, Coller Capital, Ltd. Jean Hoysradt Former Chief Investment Officer of Mousse Partners Limited Margaret G. Lewis Chairman, Federal Reserve Bank of Richmond Richard C. Marston, Ph.D. James R. F. Guy Professor of Finance & Economics at the Wharton School of the University of Pennsylvania Nick J.M. van Ommen Former Chief Executive Officer, European Public Real Estate Association Senior Management Jason E. Fox Chief Executive Officer John J. Park President ToniAnn Sanzone Managing Director & Chief Financial Officer Brooks G. Gordon Managing Director & Head of Asset Management Susan C. Hyde Managing Director, Chief Administrative Officer, Chief Ethics Officer & Corporate Secretary Paul Marcotrigiano Managing Director & General Counsel Gino Sabatini Managing Director & Head of Investments Executive Offices W. P. Carey Inc. 50 Rockefeller Plaza New York, NY 10020 1-212-492-1100 1-800-WP CAREY (1-800-972-2739) Transfer Agent Computershare P.O. Box 505000 Louisville, KY 40233-5000 1-888-200-8690 Institutional Investor Relations Peter Sands Director of Institutional Investor Relations 1-212-492-1110 institutionalir@wpcarey.com “One of the things that excites me most about being CEO is the opportunity to work with our talented and dedicated employees. Like Bill, I believe that in order to build a successful business, you have to build a successful team first. By investing in our employees and creating a positive work environment, we invest in our future and build on our long-term success.” —Jason E. Fox 18 | W. P. Carey Inc. W. P. Carey Inc. 50 Rockefeller Plaza New York, NY 10020 1-800-WP CAREY www.wpcarey.com NYSE: WPC Follow us: The paper and printer used in the production of the W. P. Carey 2017 Annual Report are certified to Forest Stewardship Council® (FSC®) standards, which promote environmentally appropriate, socially beneficial and economically viable management of the world’s forests. This report was printed on paper containing 10% postconsumer waste material. 

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