July 7, 2008 - W.R. Carey & Co. LLC (WPC-NYSE) is a real estate investment manager. The firm also provides long-term net lease financing for companies. It manages real estate funds for its clients. The firm primarily invests in real estate markets across the globe, investing in office, warehouse, industrial, distribution centers, retail, hotels, and R&D properties as well as manufacturing and special purpose facilities located in North America, Europe, and Asia.

The key to finding comfort in this stock is the word "global". This is not a company dependent solely on the U.S. markets for its well-being. While domestic real estate is waning, Europe and Asia (where the company operates) are booming.

Revenues are rising for WPC. In the first quarter of 2008, they were up 28%. Higher asset management fees made a strong contribution with an increase of 34%. That group makes up about 35% of all sales. Total revenues for 2007 were $263 million, down from $273.3 million in 2006. This year analysts look for $270 million and $295 million next year.

On the earnings side, the first quarter per share total was 43 cents, up from 27 cents last year in the same quarter. For the year, analysts predict $2.02 and $2.14 for next year. 90 days ago those numbers were $2.13 and $2.41 respectively.

The company recently raised its dividend by 2 cents to 48.7 cents per quarter. That puts the yield for the stock at 7% with a $28 price. Dividends have increased from $1.75 in 2004 to $1.78, followed by $1.81 and $1.86. If held at the current quarterly pay rate, they'll be $1.95 for the next year.

WPC's properties are performing well. In its wholly owned portfolio, occupancy was 96% and close to 99% for those owned by its REIT funds. With such strong demand, some of the properties had rents boosted.

One area that is of concern is the firm's $57 million in structured investments. That's down considerably from $167 million last year at this time. Don't expect a quick recovery since the company committed $400 million to a German structured investment in 2007. These complicated and out of favor investments have caused analysts to lower earnings per share for this year and next.

More numbers: This is a Limited Liability Corporation which means most of the profits flow through to investors as dividends. Over the last 5 years, sales increased by 9% while earnings improved by 15.5% on average. In the next 5 years, revenues are predicted to rise by 6% annually while earnings post gains of 9.5% on average. Book Value is $16.75.

The company is raising new money for a fund focused on the lodging industry. It's called Carey Watermark Investors and will try to raise $1 billion later this year. Another fund, CPA Global opened in early 2008 and has a goal of $2 billion. To date, there's $110 million in the til.

This isn't an exciting stock unless you like income. It's not a growth company. But then it's not subject to huge swings in the market. In fact, it's traded in a narrow range over the last 2 years, staying between $28 and $36. Now it's trading near the bottom of that just as the dividend has increased. That dividend should be reasonably safe as the properties WPC owns and/or manages have high occupancy rates. Dig a little deeper into this one if you're looking for a decent yield in this tumultous market.

- Company Web site: www.wpcarey.com

- Ted Allrich