W.P. Carey, Inc., announced today that its proposed merger with Corporate Property Associate 16—Global Incorporated (CPA®:16 – Global) was approved by stockholders on both sides. CPA: Global 16 is a publicly held non-traded REIT and an affiliate of W.P. Carey. The merger was approved by 98% of the shares voted by W.P. Carey stockholders and 96% of the eligible votes cast at a CPA: Global 16 special stockholder meeting. The transaction is expected to be complete by the end of the month and is valued at approximately $4 billion.
Once the transaction is complete, W.P. Carey’s expected equity market capitalization will be $6.5 billion with an expected $10 billion total market capitalization. Its global portfolio will be composed of over 85 million square feet of corporate real estate that is leased to over 230 companies around the world. W.P. Carey will remain the manager of its non-traded REITs CPA®:17 – Global, CPA®:18 – Global and Carey Watermark Investors. The merger is part of a shift that is expected to improve the quality of W.P. Carey’s earnings by shifting its revenue mix towards stable real estate income and increasing portfolio diversification.
The Company also announced that it expects to report Adjusted Funds From Operations (“AFFO”) of between $4.40 to $4.65 per diluted share for the year of 2014. It expects to update its annual AFFO guidance in connection with the release of its quarterly earnings throughout the year.
Certain assumptions reflected in the guidance range, include:
- closing of the merger with CPA®:16 – Global;
- approximately $1.5 billion of total acquisitions, including approximately $1.3 billion in the Managed REITs;
- anticipated asset dispositions; and
- enhanced access to capital markets and reducing secured mortgage debt.
President and CEO of W. P. Carey, Trevor Bond, commented, “With the addition of assets that have been managed since their acquisition by W. P. Carey’s management team, the merger with CPA®:16 – Global reinforces W. P. Carey’s status as a leading net-lease REIT of significant scale and increasingly diversified global portfolio. By enhancing our access to diverse, efficiently priced sources of capital, the merger will continue to position us to capitalize on new opportunities that support W. P. Carey’s long-standing tradition of stable dividend growth and value creation for our shareholders.”
CPA®:16 – Global sought to invest in a diversified portfolio of income-producing commercial properties and real estate-related assets. It has a portfolio that consists of 142 tenants in 13 countries and 27 industries. It closed to new investors in December 2006.