W. P. Carey Concludes Strategic Review, Non-Traded Companies Remain Intact

W. P. Carey Inc. (NYSE: WPC), a publicly traded real estate investment trust and manager of non-traded programs, released its financial results for the first quarter of 2016. The firm also announced that it has concluded its formal strategic review process and will continue to conduct business as a single entity.

Last November, the company announced that it was actively exploring a potential separation into more focused entities aligned with its core competencies. The company was considering splitting into three businesses, a U.S. REIT focused on commercial properties, a European REIT, and an asset management arm that creates non-traded programs

W. P. Carey is the advisor to four non-traded real estate investment trusts (CPA:17 – Global, CPA:18 – Global, Carey Watermark Investors, Carey Watermark Investors 2), and one business development company (Carey Credit Income Fund). On Wednesday, the company filed a registration statement with the Securities and Exchange Commission for CPA®:19 – Global, a non-traded REIT.

“After a careful and thorough process, covering a wide range of alternatives, our formal strategic review has reaffirmed the benefits of our diversified business model,” said Mark J. DeCesaris, chief executive officer of W. P. Carey.

He added, “Accordingly, with the full support of our board, we are implementing a comprehensive business plan designed to best position the company to generate long-term value for our shareholders focused on six key priorities — growth, diversification, operational efficiency, balance sheet strength and flexibility, proactive asset management and transparency.”

During the 2016 first quarter, the company structured new investments totaling $411.7 million on behalf of its non-traded REITs, including transaction-related costs and fees.

As of March 31, 2016, the company’s managed programs, which include the four non-traded REITs and single BDC, had total assets under management of approximately $11.6 billion, up 22.1 percent from $9.5 billion as of March 31, 2015.

During the 2016 first quarter, investor capital inflows for the managed programs, including DRIP proceeds, net of redemptions, totaled $206.3 million, due primarily to inflows into Carey Watermark Investors 2.

W. P. Carey is a net lease REIT that provides long-term sale-leaseback and build-to-suit financing solutions for companies worldwide.