Noncontrolling Interests

6 Months Ended

Jun. 30, 2011

Note 12. Noncontrolling Interests

Noncontrolling interest is the portion of equity in a subsidiary not attributable, directly or indirectly, to a parent. Other than our acquisition of the noncontrolling interest in a property from CPA®:14 in connection with the CPA®:14 Asset Sales (Note 4), there were no changes in our ownership interest in any of our consolidated subsidiaries for the six months ended June 30, 2011 .

The following table presents a reconciliation of total equity, the equity attributable to our shareholders and the equity attributable to noncontrolling interests (in thousands):


			W. P. Carey		Noncontrolling
	Total Equity		Members		Interests
Balance at January 1, 2011	$	665,474	$	625,013	$	40,461
Shares issued		1,018		1,018		-
Contributions		1,459		-		1,459
Redemption value adjustment		691		691		-
Purchase of noncontrolling interest (a)		(7,491)		(5,879)		(1,612)
Net income (loss)		101,741		102,455		(714)
Stock-based compensation expense		8,628		8,628		-
Windfall tax provision - share incentive plans		872		872		-
Distributions		(44,725)		(42,561)		(2,164)
Change in other comprehensive income		7,604		6,367		1,237
Shares repurchased		(3,255)		(3,255)		-
Balance at June 30, 2011	$	732,016	$	693,349	$	38,667


			W. P. Carey		Noncontrolling
	Total Equity		Members		Interests
Balance at January 1, 2010	$	632,408	$	625,633	$	6,775
Shares issued		799		799		-
Contributions		11,180		-		11,180
Redemption value adjustment		538		538		-
Tax impact of purchase of WPCI interest		(1,637)		(1,637)		-
Net income (loss)		37,431		37,845		(414)
Stock-based compensation expense		4,936		4,936		-
Windfall tax benefits - share incentive plans		(159)		(159)		-
Distributions		(41,824)		(40,974)		(850)
Change in other comprehensive loss		(9,665)		(9,178)		(487)
Shares repurchased		(904)		(904)		-
Balance at June 30, 2010	$	633,103	$	616,899	$	16,204

____________

In May 2011, we purchased the noncontrolling interest in the Checkfree venture from CPA®:14 at a total cost of $7.5 million as part of the CPA®:14 Asset Sales. In connection with the purchase, we recorded a $5.9 million reduction in Listed shares, which represents the excess of the fair value of the noncontrolling interest over its carrying value.

Redeemable Noncontrolling Interest

We account for the noncontrolling interest in WPCI held by one of our officers as a redeemable noncontrolling interest, as we have an obligation to repurchase the interest from that officer, subject to certain conditions. The officer's interest is reflected at estimated redemption value for all periods presented. Redeemable noncontrolling interest, as presented on the consolidated balance sheets, reflects an adjustment of ($0.7) million and ($0.5) million at June 30, 2011 and December 31, 2010, respectively, to present the noncontrolling interest at redemption value.

The following table presents a reconciliation of redeemable noncontrolling interests (in thousands):

	Six Months Ended June 30,
	2011		2010
Balance at January 1,	$	7,546	$	7,692
Redemption value adjustment		(691)		(538)
Net income		604		592
Distributions		(676)		(610)
Change in other comprehensive income (loss)		9		(17)
Balance at June 30,	$	6,792	$	7,119