Vote

Stockholders approve WP Carey and CPA:16 - Global merger

WP Carey’s proposed merger with its publicly held, non-traded REIT affiliate, Corporate Property Associates 16 – Global Incorporated (CPA:16 – Global), has been approved by stockholders.

The merger was approved by 98 per cent of the shares voted by WP Carey's stockholders and by 96 per cent of the eligible votes cast at CPA:16 – Global's special meeting of stockholders.
 
The transaction is expected to close on 31 January.
 
Upon completion of the transaction, WP Carey is expected to have an equity market capitalisation of approximately USD6.5bn and a total market capitalisation of approximately USD10bn.  Its global portfolio will consist of more than 85 million square feet of corporate real estate leased to over 230 companies around the world. WP Carey will continue to manage CPA:17 – Global, CPA:18 – Global and Carey Watermark Investors, its publicly held non-traded REITs.
 
The merger is expected to improve the quality of WP Carey's earnings by continuing the shift in revenue mix towards stable real estate income and increasing portfolio diversification.
 
The company also announced that for the full year 2014 it expects to report adjusted funds from operations (AFFO) of between USD4.40 to USD4.65 per diluted share. WP Carey expects to update its annual AFFO guidance in connection with the release of its quarterly earnings throughout the year.
 
Trevor P Bond, president and CEO of WP Carey, says: "With the addition of assets that have been managed since their acquisition by WP Carey's management team, the merger with CPA:16 – Global reinforces WP 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 capitalise on new opportunities that support WP Carey's long-standing tradition of stable dividend growth and value creation for our shareholders."

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