1250873--3/26/2007--CORPORATE_PROPERTY_ASSOCIATES_16_GLOBAL

related topics

{investment, property, distribution}

{tax, income, asset}

{stock, price, share}

{loss, insurance, financial}

{financial, litigation, operation}

{property, intellectual, protect}

{interest, director, officer}

{loan, real, estate}

{provision, law, control}

{operation, international, foreign}

{control, financial, internal}

{personnel, key, retain}

{cost, regulation, environmental}

Our investments in properties outside of the United States subject us to foreign currency risks which may adversely affect distributions. The advisor and Carey Financial are the subjects of an ongoing SEC investigation, the effects of which could be materially adverse to them and, possibly, us. The offering price for shares of our common stock was determined by our board of directors. Our success is dependent on the performance of the advisor. The advisor may be subject to conflicts of interest. We have limited independence from the advisor. We were incorporated in June 2003 and have a limited operating history. We face competition for the acquisition of properties. The ability of our board of directors to change our investment policies or revoke our REIT election without shareholder approval may cause adverse consequences to our shareholders. A potential change in United States accounting standards regarding operating leases may make the leasing of facilities less attractive to our potential domestic tenants, which could reduce overall demand for our leasing services. We may have difficulty selling or re-leasing our properties. The inability of a tenant in a single tenant property to pay rent will reduce our revenues. The bankruptcy or insolvency of tenants or borrowers may cause a reduction in revenue. We may recognize substantial impairment charges on our properties. Our leases may permit tenants to purchase a property at a predetermined price, which could limit our realization of any appreciation or result in a loss. We may suffer uninsured losses. Potential liability for environmental matters could adversely affect our financial condition. Our use of debt to finance investments could adversely affect our cash flow. Our participation in ventures with others creates additional risk. We do not fully control the management for our properties. We may incur costs to finish build-to-suit properties. The termination or replacement of the advisor could trigger a default or repayment event under our mortgage loans for some of our properties. Loans collateralized by non-real estate assets create additional risk and may adversely affect our REIT qualification. Your investment return may be reduced if we are required to register as an investment company under the Investment Company Act. The returns on our investment in net leased properties may not be as great as returns on equity investments in real properties during strong real estate markets. Failure to qualify as a REIT would adversely affect our operations and ability to make distributions. Our distributions may exceed our earnings. Dividends payable by REITs generally do not qualify for reduced U.S. federal income tax rates because qualifying REITs do not pay U.S. federal income tax on their net income. Possible legislative or other actions affecting REITs could adversely affect our shareholders and us. Maryland law could restrict change in control. Shareholders equity may be diluted There is not, and may never be a public market for our shares, so it will be difficult for shareholders to sell shares quickly. Our net asset value will be based on information that the advisor provides to a third party. There are special considerations for pension or profit-sharing trusts, Keoghs or IRAs.

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1250873--3/26/2007--CORPORATE_PROPERTY_ASSOCIATES_16_GLOBAL_INC