W. P. Carey Announces Third Quarter Financial Results

Quarterly Revenues and FFO Ahead of 2007

W. P. Carey Q3 Financials

New York, NY – November 6, 2008 – Investment firm W. P. Carey & Co. LLC (NYSE: WPC) today reported financial results for the third quarter ended September 30, 2008.

Commenting on the Company’s results, Wm. Polk Carey, Founder and Chairman, stated, “I am pleased with our team’s fine performance during these challenging times. Combining corporate credit with important company properties and broad diversification has provided protection against adverse cycles. I am proud of our risk management and trust that we shall continue to be vigilant on behalf of our fellow investors.”

QUARTERLY AND NINE-MONTH RESULTS

• Total revenues net of reimbursed costs for the third quarter of 2008 were $55.3 million, as compared to $51.2 million for the comparable period in 2007, an increase of 8%. Total revenues net of reimbursed costs for the nine months ended September 30, 2008 were $149.8 million, as compared to $198.2 million for the comparable period in 2007.  Results for the nine months ended September 30, 2007 were positively impacted by the recognition of the CPA®:16 – Global performance criterion and an out-of-period adjustment.  Reimbursed costs are excluded from total revenues because they have no impact on net income.

• Funds from operations (FFO) for the third quarter of 2008, as per the attached table, were $33.5 million or $0.83 per diluted share, as compared to $32.2 million or $0.81 per diluted share for the comparable period in 2007. FFO for the nine months ended September 30, 2008 was $90.6 million or $2.25 per diluted share, as compared to $130.4 million or $3.28 per diluted share for the comparable period in 2007.
• Net income for the third quarter of 2008 was $19.2 million or $0.48 per diluted share, as compared to $20.4 million or $0.53 per diluted share for the comparable period in 2007. For the nine months ended September 30, 2008, net income was $56.1 million or $1.41 per diluted share, as compared to $73.2 million or $1.90 per diluted share for the comparable period in 2007.

SUPPLEMENTAL PERFORMANCE METRICS

• For the nine months ended September 30, 2008, adjusted cash flow from operations totaled $70.1 million, as compared to $68.1 million for the comparable period in 2007.
• FFO from our real estate ownership segment increased in the third quarter of 2008 to $16 million or $0.40 per diluted share, compared to $15.2 million or $0.38 per diluted share in the third quarter of 2007. For the nine months ended September 30, 2008, FFO from this segment was $52.9 million or $1.31 per diluted share, compared to $46.9 million or $1.18 per diluted share for the comparable period in 2007.
• Earnings before interest, taxes, depreciation and amortization (EBITDA) from our investment management segment totaled $18.2 million this quarter or $0.45 per diluted share, compared to EBITDA in the third quarter of 2007 of $20 million or $0.50 per diluted share. For the nine months ended September 30, 2008, EBITDA from this segment was $48.7 million or $1.21 per diluted share, compared to $95.1 million or $2.39 per diluted share for the comparable period in 2007.
• Supplemental metrics have been adjusted on the accompanying comparability table to show how those measures would compare period-to-period after adjustment for CPA^®:16 – Global meeting its performance criterion and the out-of-period adjustment, both of which positively affected 2007 results.
• Further information concerning these non-GAAP supplemental performance metrics is presented in the accompanying tables.

GROWTH IN ASSETS UNDER MANAGEMENT

• W. P. Carey is the advisor to the CPA^® REITs, which had assets valued at approximately $8.7 billion as of September 30, 2008 – a 10% increase as compared to September 30, 2007.
• Since 2001, the Company's assets under management on behalf of the CPA^® REITs have more than tripled.
• As of September 30, 2008, the occupancy rate of our 18 million square foot owned portfolio was approximately 95%. In addition, for the 91 million square feet owned by the CPA^® REITs, the occupancy rate was approximately 99%.
  

INVESTMENT AND FUNDRAISING ACTIVITY

• Through September 30, 2008, we have structured investments totaling $404 million, 53% of which were international. For the comparable period in 2007, investment volume was $950 million and included the $446 million Hellweg Die Profi-Baumärkte GmbH & Co. KG investment.
• CPA^®:17 – Global began fundraising this year. Through November 5, 2008, we have raised in excess of $300 million on CPA^®:17 – Global’s behalf.

DISTRIBUTIONS AND SHARE REPURCHASE

• The Board of Directors raised the quarterly cash distribution to $0.492 per share for the third quarter—the Company’s 30^th consecutive distribution increase—which was paid on October 15, 2008 to shareholders of record as of September 30, 2008.
• In addition, our Board approved a share repurchase program authorizing the repurchase of up to $10 million of our outstanding shares during the period from October 13, 2008 through December 15, 2008.

“During a period of extraordinary financial market volatility, we produced another quarter of solid results,” said Gordon F. DuGan, President and CEO. “We are experiencing strong cash flows and benefit from a balance sheet that we kept underleveraged through the last credit cycle. Obviously, in this environment there are concerns about the potential effects of a possible increase in corporate defaults for all net lease investors. We attempt to mitigate the effects of corporate defaults by seeking to invest in critical operating facilities that companies will continue to utilize even during a downturn in their business and we invest our funds with a philosophy of broad portfolio diversification, especially by tenant and tenant industry. As we move toward 2009, we believe our business model of investing in long-term sale-leaseback transactions on behalf of our CPA^® fund series is very well-positioned. Lastly, we believe that our financial conservatism through the last credit cycle should reap benefits for our business and our investors in the years to come.”

CONFERENCE CALL & WEBCAST

Please call at least 10 minutes prior to call to register

Time: Thursday, November 6, 2008 at 11:00 AM (ET)

Call-in Number: 1-877-407-0782
(International) +1-201-689-8567

Webcast: www.wpcarey.com/earnings

Podcast: www.wpcarey.com/podcast
Available after 2:00 PM (ET)

Replay Number: 1-877-660-6853
(International) +1-201-612-7415

Replay Access Codes: Account # 286 and Conference ID # 299626. Please note that both access codes are required for playback. Replay Available until November 21, 2008 at midnight ET.

W. P. Carey & Co. LLC
W. P. Carey & Co. LLC is an investment management firm that provides long-term sale-leaseback and build-to-suit financing for companies worldwide and manages a global investment portfolio worth more than $10 billion. Publicly traded on the New York Stock Exchange (WPC), W. P. Carey and its CPA^® series of income-generating, non-traded REITs help companies and private equity firms release capital tied up in real estate assets. Now in our 35^th year, the W. P. Carey Group’s real estate holdings are highly diversified, comprising contractual agreements with approximately 300 tenants spanning 28 industries and 14 countries. www.wpcarey.com

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This press release contains forward-looking statements within the meaning of the Federal securities laws. A number of factors could cause the Company's actual results, performance or achievement to differ materially from those anticipated. Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for office and industrial properties; interest rate levels; the availability of financing; and other risks associated with the acquisition and ownership of properties, including risks that the tenants will not pay rent, or that costs may be greater than anticipated. For further information on factors that could impact the Company, reference is made to the Company's filings with the Securities and Exchange Commission.