Formed in November 2001, Corporate Property Associates 15 Incorporated (CPA^®:15) is the fourteenth in a series of funds created and managed by W. P. Carey & Co. LLC (NYSE:WPC).  CPA^®:15 is a publicly held non-traded real estate investment trusts (REIT) that purchases single-tenant corporate properties and leases them back to the original tenant.  Income received from the lease payments is used to pay investors quarterly dividends. 

To minimize the fund's expenses and maximize distributions, leases are structured on a triple-net basis.  This means that the tenant is required to pay for the major costs of operating the facility including maintenance, insurance and taxes, for an average term of 15 to 20 years.

In addition, leases contain rent escalation provisions often tied to indices such as the Consumer Price Index (CPI) to allow for the growth of investor distributions. CPA^®:15's portfolio is expected to consist of distribution centers, manufacturing plants, corporate headquarters, retail stores and other business facilities. Many companies that enter into a sale-leaseback with CPA^®:15 are seeking capital to pay down debt, expand their businesses, transition out of a synthetic lease or fund other corporate initiatives.

Portfolio diversification reflects the essence of W. P. Carey's strategy and is the key element of its long-term success. The objective of CPA^®:15 is to deliver attractive risk-adjusted returns, stable cash flow and appreciation. It accomplishes these goals by investing in a broadly diversified portfolio of real estate assets (by region, property type and industry). Through investing in diversified triple net leased real estate assets, CPA^®:15 intends to protect investors against real estate down cycles, preserving investor capital and providing portfolio level diversification through low correlation to the stock and bond markets.

Each investment CPA^®:15 makes must be approved by W. P. Carey's independent Investment Committee.  The Committee consists of a Nobel Laureate in Economics and investment professionals, each of whom have successfully run portfolios for the top insurance companies in the world.  We believe that their seasoned judgment and extensive experience in real estate and credit analysis are key factors in the success of CPA^®:15.  The Committee also endeavors to identify improving credit situations, enabling CPA^®:15 to invest in projects which have significant upside potential.