2017 Q2 Form 10-Q Financial Statement

#000102537817000049 Filed on August 04, 2017

View on sec.gov

Income Statement

Concept 2017 Q2 2016 Q2
Revenue $221.5M $217.3M
YoY Change 1.96% -8.74%
Cost Of Revenue $18.80M $33.50M
YoY Change -43.88% 7.03%
Gross Profit $202.7M $183.8M
YoY Change 10.3% -11.12%
Gross Profit Margin 91.51% 84.6%
Selling, General & Admin $20.60M $25.00M
YoY Change -17.6% -20.63%
% of Gross Profit 10.16% 13.6%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $35.80M $37.00M
YoY Change -3.24% -51.63%
% of Gross Profit 17.66% 20.13%
Operating Expenses $83.50M $91.50M
YoY Change -8.74% -5.28%
Operating Profit $119.2M $92.30M
YoY Change 29.17% -16.24%
Interest Expense $42.24M $46.75M
YoY Change -9.66% -1.97%
% of Operating Profit 35.42% 50.65%
Other Income/Expense, Net -$27.42M -$29.90M
YoY Change -8.28% 15.97%
Pretax Income $66.11M $26.67M
YoY Change 147.88% -67.44%
Income Tax $2.448M -$8.217M
% Of Pretax Income 3.7% -30.81%
Net Earnings $64.32M $51.66M
YoY Change 24.5% -18.45%
Net Earnings / Revenue 29.03% 23.78%
Basic Earnings Per Share $0.60 $0.48
Diluted Earnings Per Share $0.59 $0.48
COMMON SHARES
Basic Shares Outstanding 107.7M shares 106.3M shares
Diluted Shares Outstanding 107.8M shares 106.5M shares

Balance Sheet

Concept 2017 Q2 2016 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $172.0M $173.0M
YoY Change -0.58% -26.07%
Cash & Equivalents $171.6M $173.3M
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory $32.00M
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets $333.0M $230.0M
YoY Change 44.78% -44.04%
LONG-TERM ASSETS
Property, Plant & Equipment $4.806B $4.893B
YoY Change -1.78% -3.24%
Goodwill $640.8M $640.6M
YoY Change 0.03% -6.77%
Intangibles
YoY Change
Long-Term Investments $330.5M $286.8M
YoY Change 15.26% 8.87%
Other Assets $276.0M
YoY Change
Total Long-Term Assets $7.984B $8.453B
YoY Change -5.54% -1.22%
TOTAL ASSETS
Total Short-Term Assets $333.0M $230.0M
Total Long-Term Assets $7.984B $8.453B
Total Assets $8.317B $8.683B
YoY Change -4.21% -3.18%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $277.0M $271.0M
YoY Change 2.21% -13.42%
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $386.0M $376.0M
YoY Change 2.66% -9.4%
LONG-TERM LIABILITIES
Long-Term Debt $4.265B $4.642B
YoY Change -8.12% 2.13%
Other Long-Term Liabilities $123.0M $128.0M
YoY Change -3.91% -25.58%
Total Long-Term Liabilities $4.388B $4.770B
YoY Change -8.01% 1.12%
TOTAL LIABILITIES
Total Short-Term Liabilities $386.0M $376.0M
Total Long-Term Liabilities $4.388B $4.770B
Total Liabilities $4.860B $5.219B
YoY Change -6.87% -0.01%
SHAREHOLDERS EQUITY
Retained Earnings
YoY Change
Common Stock $107.0K $105.0K
YoY Change 1.9% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $3.238B $3.332B
YoY Change
Total Liabilities & Shareholders Equity $8.317B $8.683B
YoY Change -4.21% -3.18%

Cashflow Statement

Concept 2017 Q2 2016 Q2
OPERATING ACTIVITIES
Net Income $64.32M $51.66M
YoY Change 24.5% -18.45%
Depreciation, Depletion And Amortization $35.80M $37.00M
YoY Change -3.24% -51.63%
Cash From Operating Activities $136.1M $124.3M
YoY Change 9.49% -8.06%
INVESTING ACTIVITIES
Capital Expenditures -$20.30M -$402.2M
YoY Change -94.95% 522.6%
Acquisitions
YoY Change
Other Investing Activities $1.800M $93.40M
YoY Change -98.07% -200.43%
Cash From Investing Activities -$18.50M -$308.8M
YoY Change -94.01% 96.06%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -103.8M 94.70M
YoY Change -209.61% 115.72%
NET CHANGE
Cash From Operating Activities 136.1M 124.3M
Cash From Investing Activities -18.50M -308.8M
Cash From Financing Activities -103.8M 94.70M
Net Change In Cash 13.80M -89.80M
YoY Change -115.37% -515.74%
FREE CASH FLOW
Cash From Operating Activities $136.1M $124.3M
Capital Expenditures -$20.30M -$402.2M
Free Cash Flow $156.4M $526.5M
YoY Change -70.29% 163.51%

Facts In Submission

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35429000 USD
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0 USD
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us-gaap Income Loss From Continuing Operations Including Portion Attributable To Noncontrolling Interest
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us-gaap Income Loss From Continuing Operations Per Diluted Share
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us-gaap Income Loss From Equity Method Investments
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31440000 USD
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us-gaap Investment Advisory Management And Administrative Fees
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4000 USD
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4000 USD
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149000 USD
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7064000 USD
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1174374000 USD
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us-gaap Real Estate Revenue Net
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314036000 USD
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965000 USD
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5322000 USD
us-gaap Reimbursement Revenue
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10543000 USD
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us-gaap Repayment Of Notes Receivable From Related Parties
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us-gaap Restructuring Charges
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7718000 USD
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9000000 USD
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9400000 USD
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44753000 USD
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105149000 USD
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58641000 USD
us-gaap Revenue From Related Parties
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121336000 USD
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Revenues
217266000 USD
us-gaap Revenues
Revenues
487506000 USD
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Revenues
221528000 USD
us-gaap Revenues
Revenues
440587000 USD
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1706921000 USD
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1314463000 USD
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1807200000 USD
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2415400000 USD
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7100000 USD
us-gaap Severance Costs1
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7100000 USD
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19400000 USD
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0
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12799 shares
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700000 USD
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3900000 USD
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12799 shares
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us-gaap Straight Line Rent Adjustments
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174000 USD
us-gaap Undistributed Earnings Loss Allocated To Participating Securities Basic
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368000 USD
CY2017Q2 us-gaap Undistributed Earnings Loss Allocated To Participating Securities Basic
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204000 USD
us-gaap Undistributed Earnings Loss Allocated To Participating Securities Basic
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386000 USD
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369300000 USD
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152900000 USD
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152700000 USD
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219674 shares
us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
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379345 shares
CY2017Q2 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
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114986 shares
us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
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185674 shares
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106530036 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
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106504226 shares
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WeightedAverageNumberOfDilutedSharesOutstanding
107783204 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
107801318 shares
CY2016Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
106310362 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
106124881 shares
CY2017Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
107668218 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
107615644 shares
wpc Accrued Noncash Investing Activities
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6000000 USD
CY2015 wpc Additional Lease Term
AdditionalLeaseTerm
P15Y
CY2016Q2 wpc Advisory Expense
AdvisoryExpense
1875000 USD
wpc Advisory Expense
AdvisoryExpense
5168000 USD
CY2017Q2 wpc Advisory Expense
AdvisoryExpense
3672000 USD
wpc Advisory Expense
AdvisoryExpense
6392000 USD
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AffiliatesReimbursementRevenue
12094000 USD
wpc Affiliates Reimbursement Revenue
AffiliatesReimbursementRevenue
31832000 USD
CY2017Q2 wpc Affiliates Reimbursement Revenue
AffiliatesReimbursementRevenue
13479000 USD
wpc Affiliates Reimbursement Revenue
AffiliatesReimbursementRevenue
39179000 USD
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AggregateDistributionsDeclared
106900000 USD
wpc Aggregate Distributions Declared
AggregateDistributionsDeclared
212800000 USD
CY2016Q2 wpc Allocated Stock Based Compensation Expense Excluding Restructuring Expense
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4001000 USD
wpc Allocated Stock Based Compensation Expense Excluding Restructuring Expense
AllocatedStockBasedCompensationExpenseExcludingRestructuringExpense
10608000 USD
CY2017Q2 wpc Allocated Stock Based Compensation Expense Excluding Restructuring Expense
AllocatedStockBasedCompensationExpenseExcludingRestructuringExpense
3104000 USD
wpc Allocated Stock Based Compensation Expense Excluding Restructuring Expense
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10014000 USD
wpc Amortization Of Rent Related Intangiblesand Deferred Rental Revenue
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-20875000 USD
wpc Amortization Of Rent Related Intangiblesand Deferred Rental Revenue
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24753000 USD
CY2016Q4 wpc Asset Management Fees Receivable
AssetManagementFeesReceivable
2449000 USD
CY2017Q2 wpc Asset Management Fees Receivable
AssetManagementFeesReceivable
864000 USD
CY2016 wpc Construction In Progress Placed Into Service
ConstructionInProgressPlacedIntoService
35500000 USD
wpc Construction In Progress Placed Into Service
ConstructionInProgressPlacedIntoService
58700000 USD
CY2015 wpc Contract Termination Income
ContractTerminationIncome
15000000 USD
wpc Contract Termination Income
ContractTerminationIncome
32200000 USD
CY2016Q4 wpc Current Acquisition Fees Receivable
CurrentAcquisitionFeesReceivable
8024000 USD
CY2017Q2 wpc Current Acquisition Fees Receivable
CurrentAcquisitionFeesReceivable
1580000 USD
CY2016Q2 wpc Dealer Manager Feesand Expenses
DealerManagerFeesandExpenses
2620000 USD
wpc Dealer Manager Feesand Expenses
DealerManagerFeesandExpenses
5972000 USD
CY2017Q2 wpc Dealer Manager Feesand Expenses
DealerManagerFeesandExpenses
2788000 USD
wpc Dealer Manager Feesand Expenses
DealerManagerFeesandExpenses
6082000 USD
wpc Deferred Acquisition Revenue Received
DeferredAcquisitionRevenueReceived
11833000 USD
wpc Deferred Acquisition Revenue Received
DeferredAcquisitionRevenueReceived
9927000 USD
CY2016Q4 wpc Deferredacquisitionfeesreceivable
Deferredacquisitionfeesreceivable
21967000 USD
CY2017Q2 wpc Deferredacquisitionfeesreceivable
Deferredacquisitionfeesreceivable
16417000 USD
CY2017Q1 wpc Disposal Group Including Discontinued Operation Gain Lossonthe Saleof Real Estate
DisposalGroupIncludingDiscontinuedOperationGainLossontheSaleofRealEstate
-100000 USD
CY2017Q1 wpc Disposal Group Including Discontinued Operation Non Current Debt
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28100000 USD
CY2017Q1 wpc Disposal Group Including Discontinued Operation Restricted Cashand Cash Equivalents
DisposalGroupIncludingDiscontinuedOperationRestrictedCashandCashEquivalents
3800000 USD
CY2016Q4 wpc Distributionand Shareholder Servicing Fee Receivable
DistributionandShareholderServicingFeeReceivable
19341000 USD
CY2017Q2 wpc Distributionand Shareholder Servicing Fee Receivable
DistributionandShareholderServicingFeeReceivable
28515000 USD
CY2016Q2 wpc Distributionof Available Cash From Managed Reits
DistributionofAvailableCashFromManagedReits
10161000 USD
CY2015 wpc Effective Income Tax Rate Reconciliation Sharebased Compensation Excess Tax Benefit Amount
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12500000 USD
wpc Distributionof Available Cash From Managed Reits
DistributionofAvailableCashFromManagedReits
21142000 USD
CY2017Q2 wpc Distributionof Available Cash From Managed Reits
DistributionofAvailableCashFromManagedReits
10728000 USD
wpc Distributionof Available Cash From Managed Reits
DistributionofAvailableCashFromManagedReits
22521000 USD
CY2016 wpc Effective Income Tax Rate Reconciliation Sharebased Compensation Excess Tax Benefit Amount
EffectiveIncomeTaxRateReconciliationSharebasedCompensationExcessTaxBenefitAmount
6700000 USD
CY2017Q2 wpc Effective Income Tax Rate Reconciliation Sharebased Compensation Excess Tax Benefit Amount
EffectiveIncomeTaxRateReconciliationSharebasedCompensationExcessTaxBenefitAmount
800000 USD
wpc Effective Income Tax Rate Reconciliation Sharebased Compensation Excess Tax Benefit Amount
EffectiveIncomeTaxRateReconciliationSharebasedCompensationExcessTaxBenefitAmount
3000000 USD
CY2016Q4 wpc Finite Lived Intangible Asset Acquired In Place Leases Net
FiniteLivedIntangibleAssetAcquiredInPlaceLeasesNet
1172238000 USD
CY2017Q2 wpc Finite Lived Intangible Asset Acquired In Place Leases Net
FiniteLivedIntangibleAssetAcquiredInPlaceLeasesNet
1199289000 USD
CY2016Q4 wpc Finite Lived Intangible Asset Off Market Lease Favorable Net
FiniteLivedIntangibleAssetOffMarketLeaseFavorableNet
632383000 USD
CY2017Q2 wpc Finite Lived Intangible Asset Off Market Lease Favorable Net
FiniteLivedIntangibleAssetOffMarketLeaseFavorableNet
639654000 USD
CY2016Q4 wpc Finite Lived Intangible Liabilities Accumulated Amortization
FiniteLivedIntangibleLiabilitiesAccumulatedAmortization
40593000 USD
CY2017Q2 wpc Finite Lived Intangible Liabilities Accumulated Amortization
FiniteLivedIntangibleLiabilitiesAccumulatedAmortization
46339000 USD
CY2016Q4 wpc Finite Lived Intangible Liabilities Gross
FiniteLivedIntangibleLiabilitiesGross
146085000 USD
CY2017Q2 wpc Finite Lived Intangible Liabilities Gross
FiniteLivedIntangibleLiabilitiesGross
148364000 USD
CY2016Q4 wpc Finite Lived Intangible Liabilities Net
FiniteLivedIntangibleLiabilitiesNet
105492000 USD
CY2017Q2 wpc Finite Lived Intangible Liabilities Net
FiniteLivedIntangibleLiabilitiesNet
102025000 USD
wpc Funds Capitalized For Construction In Progress
FundsCapitalizedForConstructionInProgress
29800000 USD
CY2016Q2 wpc Incentive Termination And Subordinated Disposition Revenue
IncentiveTerminationAndSubordinatedDispositionRevenue
0 USD
wpc Incentive Termination And Subordinated Disposition Revenue
IncentiveTerminationAndSubordinatedDispositionRevenue
0 USD
CY2017Q2 wpc Incentive Termination And Subordinated Disposition Revenue
IncentiveTerminationAndSubordinatedDispositionRevenue
706000 USD
wpc Incentive Termination And Subordinated Disposition Revenue
IncentiveTerminationAndSubordinatedDispositionRevenue
797000 USD
wpc Increase Decrease In Structuring Revenue Receivable
IncreaseDecreaseInStructuringRevenueReceivable
4298000 USD
wpc Increase Decrease In Structuring Revenue Receivable
IncreaseDecreaseInStructuringRevenueReceivable
4064000 USD
CY2016Q4 wpc Indefinite Lived Intangible Asset
IndefiniteLivedIntangibleAsset
636786000 USD
CY2017Q2 wpc Indefinite Lived Intangible Asset
IndefiniteLivedIntangibleAsset
641699000 USD
CY2016Q4 wpc Intangible Assets Gross Including Goodwill
IntangibleAssetsGrossIncludingGoodwill
2463084000 USD
CY2017Q2 wpc Intangible Assets Gross Including Goodwill
IntangibleAssetsGrossIncludingGoodwill
2502349000 USD
CY2016Q4 wpc Intangible Liabilities Gross
IntangibleLiabilitiesGross
162796000 USD
CY2017Q2 wpc Intangible Liabilities Gross
IntangibleLiabilitiesGross
165075000 USD
CY2016Q4 wpc Intangible Liabilities Net
IntangibleLiabilitiesNet
122203000 USD
CY2017Q2 wpc Intangible Liabilities Net
IntangibleLiabilitiesNet
118736000 USD
CY2016Q1 wpc Lease Termination Fee
LeaseTerminationFee
22200000 USD
CY2017Q2 wpc Long Term Debt Before Unamortized Discount
LongTermDebtBeforeUnamortizedDiscount
4294147000 USD
wpc Management Income Received In Shares Of Affiliates
ManagementIncomeReceivedInSharesOfAffiliates
13973000 USD
wpc Management Income Received In Shares Of Affiliates
ManagementIncomeReceivedInSharesOfAffiliates
31879000 USD
wpc Net Income Loss Including Portion Attributable To Redeemable Noncontrolling Interest
NetIncomeLossIncludingPortionAttributableToRedeemableNoncontrollingInterest
114035000 USD
wpc Net Income Loss Including Portion Attributable To Redeemable Noncontrolling Interest
NetIncomeLossIncludingPortionAttributableToRedeemableNoncontrollingInterest
126956000 USD
CY2016 wpc Number Of Construction Projects During Period
NumberOfConstructionProjectsDuringPeriod
3 property
wpc Number Of Construction Projects During Period
NumberOfConstructionProjectsDuringPeriod
2 property
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OrganizationAndOfferingCostsReceivable
784000 USD
CY2017Q2 wpc Organization And Offering Costs Receivable
OrganizationAndOfferingCostsReceivable
572000 USD
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OtherComprehensiveIncomeLossUnrealizedGainLossOnDerivativesArisingDuringPeriodIncludingPortionAttributableToNoncontrollingInterestAndRedeemableNoncontrollingInterestNetOfTax
-2906000 USD
wpc Other Comprehensive Income Loss Unrealized Gain Loss On Derivatives Arising During Period Including Portion Attributable To Noncontrolling Interest And Redeemable Noncontrolling Interest Net Of Tax
OtherComprehensiveIncomeLossUnrealizedGainLossOnDerivativesArisingDuringPeriodIncludingPortionAttributableToNoncontrollingInterestAndRedeemableNoncontrollingInterestNetOfTax
-22304000 USD
wpc Other Comprehensive Income Loss Unrealized Gain Loss On Derivatives Arising During Period Including Portion Attributable To Noncontrolling Interest Redeemable Noncontrolling Interest Net Of Tax
OtherComprehensiveIncomeLossUnrealizedGainLossOnDerivativesArisingDuringPeriodIncludingPortionAttributableToNoncontrollingInterestRedeemableNoncontrollingInterestNetOfTax
-30175000 USD
wpc Other Comprehensive Income Loss Unrealized Gain Loss On Derivatives Arising During Period Including Portion Attributable To Noncontrolling Interest Redeemable Noncontrolling Interest Net Of Tax
OtherComprehensiveIncomeLossUnrealizedGainLossOnDerivativesArisingDuringPeriodIncludingPortionAttributableToNoncontrollingInterestRedeemableNoncontrollingInterestNetOfTax
42707000 USD
wpc Other Comprehensive Income Lossunrealizedholding Gain Loss On Securities Arising During Period Including Portion Attributable To Redeemable Noncontrolling Interest Net Of Tax
OtherComprehensiveIncomeLossunrealizedholdingGainLossOnSecuritiesArisingDuringPeriodIncludingPortionAttributableToRedeemableNoncontrollingInterestNetOfTax
4000 USD
wpc Other Comprehensive Income Lossunrealizedholding Gain Loss On Securities Arising During Period Including Portion Attributable To Redeemable Noncontrolling Interest Net Of Tax
OtherComprehensiveIncomeLossunrealizedholdingGainLossOnSecuritiesArisingDuringPeriodIncludingPortionAttributableToRedeemableNoncontrollingInterestNetOfTax
-326000 USD
wpc Payments To Acquire Real Estate Under Construction
PaymentsToAcquireRealEstateUnderConstruction
18430000 USD
wpc Payments To Acquire Real Estate Under Construction
PaymentsToAcquireRealEstateUnderConstruction
23830000 USD
wpc Percentage Of Available Cash Distribution To Advisor
PercentageOfAvailableCashDistributionToAdvisor
0.1
wpc Prepayment Of Mortgage Principal
PrepaymentOfMortgagePrincipal
67496000 USD
wpc Prepayment Of Mortgage Principal
PrepaymentOfMortgagePrincipal
100599000 USD
CY2016Q2 wpc Real Estate Revenueand Other
RealEstateRevenueandOther
182827000 USD
wpc Real Estate Revenueand Other
RealEstateRevenueandOther
403823000 USD
CY2017Q2 wpc Real Estate Revenueand Other
RealEstateRevenueandOther
174047000 USD
wpc Real Estate Revenueand Other
RealEstateRevenueandOther
342789000 USD
wpc Realized Gain Loss On Foreign Currency Transactions And Other
RealizedGainLossOnForeignCurrencyTransactionsAndOther
2202000 USD
wpc Realized Gain Loss On Foreign Currency Transactions And Other
RealizedGainLossOnForeignCurrencyTransactionsAndOther
-6763000 USD
CY2016Q2 wpc Related Party Reimbursement Revenue
RelatedPartyReimbursementRevenue
12094000 USD
wpc Related Party Reimbursement Revenue
RelatedPartyReimbursementRevenue
31832000 USD
CY2017Q2 wpc Related Party Reimbursement Revenue
RelatedPartyReimbursementRevenue
13479000 USD
wpc Related Party Reimbursement Revenue
RelatedPartyReimbursementRevenue
39179000 USD
CY2016Q4 wpc Related Party Reimbursement Revenue Receivable
RelatedPartyReimbursementRevenueReceivable
4427000 USD
CY2017Q2 wpc Related Party Reimbursement Revenue Receivable
RelatedPartyReimbursementRevenueReceivable
4502000 USD
CY2017Q2 wpc Required Distributionof Organizationand Offering Cost Receivedby Subadvisor
RequiredDistributionofOrganizationandOfferingCostReceivedbySubadvisor
0.5
wpc Shares Issuedto Third Partyin Connectionwiththe Redemptionof Redeemable Noncontrolling Interest
SharesIssuedtoThirdPartyinConnectionwiththeRedemptionofRedeemableNoncontrollingInterest
13418000 USD
CY2016Q2 wpc Structuring Revenue
StructuringRevenue
5968000 USD
wpc Structuring Revenue
StructuringRevenue
18689000 USD
CY2017Q2 wpc Structuring Revenue
StructuringRevenue
14330000 USD
wpc Structuring Revenue
StructuringRevenue
18164000 USD
CY2016Q4 wpc Unfunded Commitment
UnfundedCommitment
135200000 USD
CY2017Q2 wpc Unfunded Commitment
UnfundedCommitment
109200000 USD
CY2017Q2 wpc Variable Interest Entities Consolidated Count
VariableInterestEntitiesConsolidatedCount
22 vie
CY2017Q2 wpc Variable Interest Entities Count
VariableInterestEntitiesCount
29 vie
CY2016Q4 wpc Variable Interest Entities Unconsolidated Count
VariableInterestEntitiesUnconsolidatedCount
7 vie
CY2017Q2 wpc Variable Interest Entities Unconsolidated Count
VariableInterestEntitiesUnconsolidatedCount
7 vie
CY2016Q2 wpc Wholesaling Revenue
WholesalingRevenue
1372000 USD
wpc Wholesaling Revenue
WholesalingRevenue
3544000 USD
CY2017Q2 wpc Wholesaling Revenue
WholesalingRevenue
1000000 USD
wpc Wholesaling Revenue
WholesalingRevenue
4325000 USD
us-gaap Description Of New Accounting Pronouncements Not Yet Adopted
DescriptionOfNewAccountingPronouncementsNotYetAdopted
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Recent Accounting Pronouncements</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In May 2014, the Financial Accounting Standards Board, or FASB, issued</font><font style="font-family:inherit;font-size:10pt;font-style:italic;"> ASU 2014-09</font><font style="font-family:inherit;font-size:10pt;">, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Revenue from Contracts with Customers (Topic 606).</font><font style="font-family:inherit;font-size:10pt;"> ASU 2014-09 is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 does not apply to our lease revenues, which constitute a majority of our revenues, but will apply to reimbursed tenant costs, revenues generated from our operating properties, and our Investment Management business. We will adopt this guidance for our annual and interim periods beginning January 1, 2018 using one of two methods: retrospective restatement for each reporting period presented at the time of adoption, or retrospectively with the cumulative effect of initially applying this guidance recognized at the date of initial application. We have not decided which method of adoption we will use. We are evaluating the impact of the new standard and have not yet determined if it will have a material impact on our business or our consolidated financial statements.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In February 2016, the FASB issued </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">ASU 2016-02, Leases (Topic 842). </font><font style="font-family:inherit;font-size:10pt;">ASU 2016-02 outlines a new model for accounting by lessees, whereby their rights and obligations under substantially all leases, existing and new, would be capitalized and recorded on the balance sheet. For lessors, however, the accounting remains largely unchanged from the current model, with the distinction between operating and financing leases retained, but updated to align with certain changes to the lessee model and the new revenue recognition standard. The new standard also replaces existing sale-leaseback guidance with a new model applicable to both lessees and lessors. Additionally, the new standard requires extensive quantitative and qualitative disclosures. ASU 2016-02 is effective for GAAP public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application will be permitted for all entities. The new standard must be adopted using a modified retrospective transition of the new guidance and provides for certain practical expedients. Transition will require application of the new model at the beginning of the earliest comparative period presented. The ASU is expected to impact our consolidated financial statements as we have certain operating office and land lease arrangements for which we are the lessee. We are evaluating the impact of the new standard and have not yet determined if it will have a material impact on our business or our consolidated financial statements.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In March 2016, the FASB issued </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. </font><font style="font-family:inherit;font-size:10pt;">ASU 2016-09 amends Accounting Standards Codification Topic 718, Compensation-Stock Based Compensation to simplify various aspects of how share-based payments are accounted for and presented in the financial statements including (i) reflecting income tax effects of share-based payments through the income statement, (ii) allowing statutory tax withholding requirements at the employees&#8217; maximum individual tax rate without requiring awards to be classified as liabilities, and (iii) permitting an entity to make an accounting policy election for the impact of forfeitures on the recognition of expense. ASU 2016-09 is effective for public business entities for annual reporting periods beginning after December 15, 2016, and interim periods within that reporting period, with early adoption permitted.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We adopted ASU 2016-09 as of January 1, 2017 and elected to account for forfeitures as they occur, rather than to account for them based on an estimate of expected forfeitures. This election was adopted using a modified retrospective transition method, with a cumulative effect adjustment to retained earnings. The related financial statement impact of this adjustment is not material. Depending on several factors, such as the market price of our common stock, employee stock option exercise behavior, and corporate income tax rates, the excess tax benefits associated with the exercise of stock options and the vesting and delivery of restricted share awards, or RSAs, restricted share units, or RSUs, and performance share units, or PSUs, could generate a significant income tax benefit in a particular interim period, potentially creating volatility in Net income attributable to W. P. Carey and basic and diluted earnings per share between interim periods. Under the former accounting guidance, windfall tax benefits related to stock-based compensation were recognized within Additional paid-in capital in our consolidated financial statements. Under ASU 2016-09, these amounts are reflected as a reduction to Provision for income taxes. For reference, windfall tax benefits related to stock-based compensation recorded in Additional paid-in capital for the years ended December 31, 2016 and 2015 were </font><font style="font-family:inherit;font-size:10pt;">$6.7 million</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">$12.5 million</font><font style="font-family:inherit;font-size:10pt;">, respectively. Windfall tax benefits related to stock-based compensation recorded as a deferred tax benefit for the three and </font><font style="font-family:inherit;font-size:10pt;">six months ended June 30, 2017</font><font style="font-family:inherit;font-size:10pt;"> were </font><font style="font-family:inherit;font-size:10pt;">$0.8 million</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">$3.0 million</font><font style="font-family:inherit;font-size:10pt;">, respectively.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In June 2016, the FASB issued </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">ASU 2016-13, Financial Instruments &#8212; Credit Losses. </font><font style="font-family:inherit;font-size:10pt;">ASU 2016-13 introduces a new model for estimating credit losses based on current expected credit losses for certain types of financial instruments, including loans receivable, held-to-maturity debt securities, and net investments in direct financing leases, amongst other financial instruments. ASU 2016-13 also modifies the impairment model for available-for-sale debt securities and expands the disclosure requirements regarding an entity&#8217;s assumptions, models, and methods for estimating the allowance for losses. ASU 2016-13 will be effective for public business entities in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early application of the guidance permitted. We are in the process of evaluating the impact of adopting ASU 2016-13 on our consolidated financial statements.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In August 2016, the FASB issued </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments</font><font style="font-family:inherit;font-size:10pt;">. ASU 2016-15 intends to reduce diversity in practice for certain cash flow classifications, including, but not limited to (i) debt prepayment or debt extinguishment costs, (ii) contingent consideration payments made after a business combination, (iii) proceeds from the settlement of insurance claims, and (iv) distributions received from equity method investees. ASU 2016-15 will be effective for public business entities in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early application of the guidance permitted. We are in the process of evaluating the impact of adopting ASU 2016-15 on our consolidated financial statements and will adopt the standard for the fiscal year beginning January 1, 2018.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In October 2016, the FASB issued </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">ASU 2016-17, Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control.</font><font style="font-family:inherit;font-size:10pt;"> ASU 2016-17 changes how a reporting entity that is a decision maker should consider indirect interests in a VIE held through an entity under common control. If a decision maker must evaluate whether it is the primary beneficiary of a VIE, it will only need to consider its proportionate indirect interest in the VIE held through a common control party. ASU 2016-17 amends ASU 2015-02, which we adopted on January 1, 2016, and which currently directs the decision maker to treat the common control party&#8217;s interest in the VIE as if the decision maker held the interest itself. ASU 2016-17 is effective for public business entities in fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. We adopted ASU 2016-17 as of January 1, 2017 on a prospective basis. The adoption of this standard did not have a material impact on our consolidated financial statements.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In November 2016, the FASB issued </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash</font><font style="font-family:inherit;font-size:10pt;">. ASU 2016-18 intends to reduce diversity in practice for the classification and presentation of changes in restricted cash on the statement of cash flows. ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 will be effective for public business entities in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. We are in the process of evaluating the impact of adopting ASU 2016-18 on our consolidated financial statements and will adopt the standard for the fiscal year beginning January 1, 2018.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In January 2017, the FASB issued </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">ASU 2017-01, Business Combinations&#160;(Topic 805): Clarifying the Definition of a Business</font><font style="font-family:inherit;font-size:10pt;">. ASU 2017-01 intends to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Under the current implementation guidance in Topic 805, there are three elements of a business: inputs, processes, and outputs. While an integrated set of assets and activities, collectively referred to as a &#8220;set,&#8221; that is a business usually has outputs, outputs are not required to be present.&#160;ASU 2017-01 provides a screen to determine when a set is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business.&#160;ASU 2017-01 will be effective for public business entities in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. We elected to early adopt ASU 2017-01 on January 1, 2017 on a prospective basis. While our acquisitions have historically been classified as either business combinations or asset acquisitions, certain acquisitions that were classified as business combinations by us likely would have been considered asset acquisitions under the new standard. As a result, transaction costs are more likely to be capitalized since we expect most of our future acquisitions to be classified as asset acquisitions under this new standard. In addition, goodwill that was previously allocated to businesses that were sold or held for sale will no longer be allocated and written off upon sale if future sales were deemed to be sales of assets and not businesses.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In January 2017, the FASB issued </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">ASU 2017-04, Intangibles &#8212; Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment</font><font style="font-family:inherit;font-size:10pt;">. ASU 2017-04 removes step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit&#8217;s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance will remain largely unchanged. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. ASU 2017-04 will be effective for public business entities in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years in which a goodwill impairment test is performed, with early adoption permitted. We adopted ASU 2017-04 as of April 1, 2017 on a prospective basis. The adoption of this standard did not have a material impact on our consolidated financial statements.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In February 2017, the FASB issued&#160;</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">ASU 2017-05, Other Income &#8212; Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20)</font><font style="font-family:inherit;font-size:10pt;">. ASU 2017-05 clarifies that a financial asset is within the scope of Subtopic 610-20 if it meets the definition of an in substance nonfinancial asset. The amendments define the term &#8220;in substance nonfinancial asset,&#8221; in part, as a financial asset promised to a counterparty in a contract if substantially all of the fair value of the assets (recognized and unrecognized) that are promised to the counterparty in the contract is concentrated in nonfinancial assets. If substantially all of the fair value of the assets that are promised to the counterparty in a contract is concentrated in nonfinancial assets, then all of the financial assets promised to the counterparty are in substance nonfinancial assets within the scope of Subtopic 610-20. This amendment also clarifies that nonfinancial assets within the scope of Subtopic 610-20 may include nonfinancial assets transferred within a legal entity to a counterparty. For example, a parent company may transfer control of nonfinancial assets by transferring ownership interests in a consolidated subsidiary. ASU 2017-05 is effective for periods beginning after December 15, 2017, with early application permitted for fiscal years beginning after December 15, 2016. We are currently evaluating the impact of ASU 2017-05 on our consolidated financial statements.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In May 2017, the FASB issued </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">ASU 2017-09, Compensation &#8212; Stock Compensation (Topic 718): Scope of Modification Accounting</font><font style="font-family:inherit;font-size:10pt;">. ASU 2017-09 clarifies when to account for a change to the terms and conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, vesting conditions, or classification of the award (as equity or liability) changes as a result of the change in terms or conditions. ASU 2017-09 will be effective in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. We are in the process of evaluating the impact of adopting ASU 2017-09 on our consolidated financial statements.</font></div></div>
us-gaap Nature Of Operations
NatureOfOperations
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Business and Organization</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">W. P. Carey Inc., or W. P. Carey, is, together with its consolidated subsidiaries, a REIT that provides long-term financing via sale-leaseback and build-to-suit transactions for companies worldwide and manages a global investment portfolio. We invest primarily in commercial properties domestically and internationally. We earn revenue principally by leasing the properties we own to single corporate tenants, on a triple-net lease basis, which generally requires each tenant to pay the costs associated with operating and maintaining the property.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Originally founded in 1973, we reorganized as a REIT in September 2012 in connection with our merger with Corporate Property Associates 15 Incorporated. We refer to that merger as the CPA</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">:15 Merger. On January 31, 2014, Corporate Property Associates 16 &#8211; Global Incorporated, or CPA</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">:16 &#8211; Global, merged with and into us, which we refer to as the CPA</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">:16 Merger. Our shares of common stock are listed on the New York Stock Exchange under the symbol &#8220;WPC.&#8221;</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We have elected to be taxed as a REIT under Section&#160;856 through 860 of the Internal Revenue Code. As a REIT, we are not generally subject to United States federal income taxation other than from our taxable REIT subsidiaries, or TRSs, as long as we satisfy certain requirements, principally relating to the nature of our income and the level of our distributions, as well as other factors. We also own real property in jurisdictions outside the United States through foreign subsidiaries and are subject to income taxes on our pre-tax income earned from properties in such countries. We hold all of our real estate assets attributable to our Owned Real Estate segment under the REIT structure, while the activities conducted by our Investment Management segment subsidiaries have been organized under TRSs.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Through our TRSs, we also earn revenue as the advisor to publicly owned, non-listed REITs, which are sponsored by us under the Corporate Property Associates, or CPA</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">,</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt"> </sup></font><font style="font-family:inherit;font-size:10pt;">brand name and invest in similar properties. At </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 2017</font><font style="font-family:inherit;font-size:10pt;">, we were the advisor to Corporate Property Associates 17 &#8211; Global Incorporated, or CPA</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">:17 &#8211; Global, and Corporate Property Associates 18 &#8211; Global Incorporated, or CPA</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">:18 &#8211; Global. We refer to CPA</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">:17 &#8211; Global and CPA</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">:18 &#8211; Global together as the CPA</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;"> REITs. </font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">At </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 2017</font><font style="font-family:inherit;font-size:10pt;">, we were also the advisor to Carey Watermark Investors Incorporated, or CWI 1, and Carey Watermark Investors 2 Incorporated, or CWI 2, two publicly owned, non-listed REITs that invest in lodging and lodging-related properties. We refer to CWI 1 and CWI 2 together as the CWI REITs and, together with the CPA</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;"> REITs, as the Managed REITs (</font><a style="font-family:inherit;font-size:10pt;" href="#s7EE23DFF44FE57489ED805992B83B656"><font style="font-family:inherit;font-size:10pt;">Note 3</font></a><font style="font-family:inherit;font-size:10pt;">). </font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">At </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 2017</font><font style="font-family:inherit;font-size:10pt;">, we also served as the advisor to Carey Credit Income Fund, or CCIF, and its feeder funds, or the CCIF Feeder Funds, each of which is a business development company, or BDC (</font><a style="font-family:inherit;font-size:10pt;" href="#s7EE23DFF44FE57489ED805992B83B656"><font style="font-family:inherit;font-size:10pt;">Note 3</font></a><font style="font-family:inherit;font-size:10pt;">). We refer to CCIF and the CCIF Feeder Funds collectively as the Managed BDCs. </font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">At </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 2017</font><font style="font-family:inherit;font-size:10pt;">, we were also the advisor to Carey European Student Housing Fund I, L.P., or CESH I, a limited partnership formed for the purpose of developing, owning, and operating student housing properties and similar investments in Europe. We refer to the Managed REITs, Managed BDCs, and CESH I collectively as the Managed Programs.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On June 15, 2017, our board of directors, or the Board, approved a plan to exit all non-traded retail fundraising activities carried out by our wholly-owned broker-dealer subsidiary, Carey Financial LLC, or Carey Financial, as of June 30, 2017. We currently expect to continue to manage all existing Managed Programs through the end of their natural life cycles (</font><a style="font-family:inherit;font-size:10pt;" href="#s7EE23DFF44FE57489ED805992B83B656"><font style="font-family:inherit;font-size:10pt;">Note 3</font></a><font style="font-family:inherit;font-size:10pt;">).</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Reportable Segments</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">As a result of our Board&#8217;s decision to exit all non-traded retail fundraising activities, described above, we have revised how we view and present a component of our two reportable segments. As such, effective for the second quarter of 2017, we include equity income generated through our (i) ownership of shares and limited partnership units of the Managed REITs and CESH I and (ii) special member interests in the operating partnerships of the Managed REITs in our Investment Management segment. Previously, these items were recognized within our Owned Real Estate segment. We also include our equity investments in the Managed REITs and CESH I in our Investment Management segment. Both (i) equity in earnings of our equity method investment in CCIF and (ii) our equity investment in CCIF continue to be included in our Investment Management segment. Results of operations and assets by segment for prior periods have been reclassified to conform to the current period presentation.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Owned Real Estate</font><font style="font-family:inherit;font-size:10pt;"> &#8212; We own and invest in commercial properties principally in North America, Europe, Australia, and Asia that are then leased to companies, primarily on a triple-net lease basis. We also own </font><font style="font-family:inherit;font-size:10pt;">two</font><font style="font-family:inherit;font-size:10pt;"> hotels, which are considered operating properties. We earn lease revenues from our wholly-owned and co-owned real estate investments that we control. In addition, we generate equity income through co-owned real estate investments that we do not control (</font><a style="font-family:inherit;font-size:10pt;" href="#sAD46F36E3164559EA557951F4FE14250"><font style="font-family:inherit;font-size:10pt;">Note 7</font></a><font style="font-family:inherit;font-size:10pt;">). At </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 2017</font><font style="font-family:inherit;font-size:10pt;">, our owned portfolio was comprised of our full or partial ownership interests in </font><font style="font-family:inherit;font-size:10pt;">895</font><font style="font-family:inherit;font-size:10pt;"> properties, totaling approximately </font><font style="font-family:inherit;font-size:10pt;">86.6 million</font><font style="font-family:inherit;font-size:10pt;"> square feet, substantially all of which were net leased to </font><font style="font-family:inherit;font-size:10pt;">214</font><font style="font-family:inherit;font-size:10pt;"> tenants, with an occupancy rate of </font><font style="font-family:inherit;font-size:10pt;">99.3%</font><font style="font-family:inherit;font-size:10pt;">. </font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Investment Management</font><font style="font-family:inherit;font-size:10pt;"> &#8212; Through our TRSs, we structure and negotiate investments and debt placement transactions for the Managed REITs and CESH I, for which we earn structuring revenue, and manage their portfolios of real estate investments, for which we earn asset management revenue. We also earn asset management revenue from CCIF based on the average of its gross assets at fair value. We may earn disposition revenue when we negotiate and structure the sale of properties on behalf of the Managed REITs, and we may also earn incentive revenue and receive other compensation through our advisory agreements with certain of the Managed Programs, including in connection with providing liquidity events for the Managed REITs&#8217; stockholders. </font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In addition, we generate equity income through our ownership of shares and limited partnership units of the Managed Programs (</font><a style="font-family:inherit;font-size:10pt;" href="#sAD46F36E3164559EA557951F4FE14250"><font style="font-family:inherit;font-size:10pt;">Note 7</font></a><font style="font-family:inherit;font-size:10pt;">). Through our special member interests in the operating partnerships of the Managed REITs, we also participate in their cash flows (</font><a style="font-family:inherit;font-size:10pt;" href="#s7EE23DFF44FE57489ED805992B83B656"><font style="font-family:inherit;font-size:10pt;">Note 3</font></a><font style="font-family:inherit;font-size:10pt;">). Our Board&#8217;s decision to exit all non-traded retail fundraising activities through Carey Financial as of June 30, 2017, as discussed above, will not affect the continuation of these current revenue streams. At </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 2017</font><font style="font-family:inherit;font-size:10pt;">, the CPA</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174; </sup></font><font style="font-family:inherit;font-size:10pt;">REITs collectively owned all or a portion of </font><font style="font-family:inherit;font-size:10pt;">461</font><font style="font-family:inherit;font-size:10pt;"> properties (including certain properties in which we have an ownership interest), totaling approximately </font><font style="font-family:inherit;font-size:10pt;">54.1 million</font><font style="font-family:inherit;font-size:10pt;"> square feet, substantially all of which were net leased to </font><font style="font-family:inherit;font-size:10pt;">210</font><font style="font-family:inherit;font-size:10pt;"> tenants, with an occupancy rate of approximately </font><font style="font-family:inherit;font-size:10pt;">99.8%</font><font style="font-family:inherit;font-size:10pt;">. The Managed REITs and CESH I also had interests in </font><font style="font-family:inherit;font-size:10pt;">164</font><font style="font-family:inherit;font-size:10pt;"> operating properties, totaling approximately </font><font style="font-family:inherit;font-size:10pt;">19.7 million</font><font style="font-family:inherit;font-size:10pt;"> square feet in the aggregate.</font></div></div>

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