##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended September 30, 2009
 or
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from __________ to ___________
 Commission File Number: 001-32162
 
 CORPORATE PROPERTY ASSOCIATES 16  GLOBAL INCORPORATED
  Maryland
(State of incorporation)
    
    80-0067704
(I.R.S. Employer Identification No.)50 Rockefeller Plaza 
New York, New York
(Address of principal executive office)
    
    10020
(Zip Code)
 Investor Relations (212) 492-8920
(212) 492-1100
 þ o
 o o
  Large accelerated filer o
Accelerated filer o
Non-accelerated filer þ
(Do not check if a smaller reporting company)Smaller reporting company o o þ




---



##### 



INDEX
 Page No.PART I  FINANCIAL INFORMATIONItem 1. Financial Statements (Unaudited)Consolidated Balance Sheets
    
    
    2Consolidated Statements of Operations
    
    
    3Consolidated Statements of Comprehensive Income (Loss)
    
    
    4Consolidated Statements of Cash Flows
    
    
    5Notes to Consolidated Financial Statements
    
    
    6Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    23Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    34Item 4T. Controls and Procedures
    
    
    36PART II  OTHER INFORMATIONItem 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    36Item 6. Exhibits
    
    
    36Signatures
    
    
    37Exhibit 10.1Exhibit 31.1Exhibit 31.2Exhibit 32
  Forward Looking Statements
  CPA®:16  Global 9/30/2009 10-Q 1




---



##### Table of Contents



PART I
 
 Item 1. Financial Statements
 
 CORPORATE PROPERTY ASSOCIATES 16  GLOBAL INCORPORATED
 Consolidated Balance Sheets (Unaudited)  (in thousands, except share and per share amounts)
 September 30, 2009
    
    
    December 31, 2008AssetsInvestments in real estate:Real estate, at cost
    
    $
    1,709,879
    
    
    $
    1,661,643Operating real estate, at cost
    
    
    83,708
    
    
    
    82,776Accumulated depreciation
    
    
    (108,862
    )
    
    
    (80,249
    )Net investments in properties
    
    
    1,684,725
    
    
    
    1,664,170Real estate under construction
    
    
    55,719
    
    
    
    Net investment in direct financing leases
    
    
    350,654
    
    
    
    341,335Equity investments in real estate
    
    
    159,860
    
    
    
    185,120Net investments in real estate
    
    
    2,250,958
    
    
    
    2,190,625Notes receivable
    
    
    368,594
    
    
    
    351,200Cash and cash equivalents
    
    
    95,897
    
    
    
    174,209Intangible assets, net
    
    
    165,191
    
    
    
    168,088Funds in escrow
    
    
    20,155
    
    
    
    52,163Other assets, net
    
    
    36,704
    
    
    
    30,918Total assets
    
    $
    2,937,499
    
    
    $
    2,967,203Liabilities and EquityLiabilities:Non-recourse debt
    
    $
    1,463,573
    
    
    $
    1,438,226Accounts payable, accrued expenses and other liabilities
    
    
    35,390
    
    
    
    52,836Prepaid and deferred rental income and security deposits
    
    
    57,137
    
    
    
    56,053Due to affiliates
    
    
    13,925
    
    
    
    21,502Distributions payable
    
    
    20,236
    
    
    
    20,140Total liabilities
    
    
    1,590,261
    
    
    
    1,588,757Redeemable noncontrolling interests
    
    
    343,494
    
    
    
    331,841Commitments and contingenciesEquity:CPA®:16  Global shareholders equity:Common stock, $0.001 par value; 250,000,000 shares authorized; 128,857,728 and
125,352,123 shares issued, respectively
    
    
    129
    
    
    
    125Additional paid-in capital
    
    
    1,163,464
    
    
    
    1,130,135Distributions in excess of accumulated earnings
    
    
    (203,035
    )
    
    
    (141,938
    )Accumulated other comprehensive income
    
    
    7,872
    
    
    
    2,140968,430
    
    
    
    990,462Less, treasury stock at cost, 6,657,770 and 3,286,473 shares, respectively
    
    
    (61,295
    )
    
    
    (30,566
    )Total CPA®:16  Global shareholders equity
    
    
    907,135
    
    
    
    959,896Noncontrolling interests
    
    
    96,609
    
    
    
    86,709Total equity
    
    
    1,003,744
    
    
    
    1,046,605Total liabilities and equity
    
    $
    2,937,499
    
    
    $
    2,967,203
  CPA®:16  Global 9/30/2009 10-Q 2




---



##### Table of Contents



CORPORATE PROPERTY ASSOCIATES 16  GLOBAL INCORPORATED
 
 Consolidated

Statements of Operations (Unaudited)  (in thousands, except share and per share amounts)
 Three months ended September 30,
    
    
    Nine months ended September 30,2009
    
    
    2008
    
    
    2009
    
    
    2008RevenuesRental income
    
    $
    39,241
    
    
    $
    37,810
    
    
    $
    113,112
    
    
    $
    111,372Interest income from direct financing leases
    
    
    7,236
    
    
    
    7,412
    
    
    
    20,833
    
    
    
    22,089Interest income on notes receivable
    
    
    7,518
    
    
    
    7,571
    
    
    
    21,227
    
    
    
    22,709Other real estate income
    
    
    5,978
    
    
    
    6,902
    
    
    
    17,925
    
    
    
    17,746Other operating income
    
    
    699
    
    
    
    575
    
    
    
    2,220
    
    
    
    2,03160,672
    
    
    
    60,270
    
    
    
    175,317
    
    
    
    175,947Operating ExpensesDepreciation and amortization
    
    
    (12,393
    )
    
    
    (11,719
    )
    
    
    (35,312
    )
    
    
    (33,944
    )Property expenses
    
    
    (8,949
    )
    
    
    (8,135
    )
    
    
    (26,891
    )
    
    
    (23,353
    )Other real estate expenses
    
    
    (4,587
    )
    
    
    (5,324
    )
    
    
    (13,624
    )
    
    
    (14,313
    )General and administrative
    
    
    (2,004
    )
    
    
    (3,884
    )
    
    
    (6,641
    )
    
    
    (10,015
    )Impairment charges
    
    
    (24,125
    )
    
    
    
    
    
    
    (40,109
    )
    
    
    (52,058
    )
    
    
    (29,062
    )
    
    
    (122,577
    )
    
    
    (81,625
    )Other Income and ExpensesIncome from equity investments in real estate
    
    
    3,483
    
    
    
    3,026
    
    
    
    11,876
    
    
    
    8,614Other interest income
    
    
    38
    
    
    
    1,114
    
    
    
    208
    
    
    
    3,851Gain on extinguishment of debt
    
    
    
    
    
    
    
    
    
    
    6,512
    
    
    
    Other income and (expenses)
    
    
    (677
    )
    
    
    (3,261
    )
    
    
    305
    
    
    
    50Interest expense
    
    
    (20,855
    )
    
    
    (21,528
    )
    
    
    (60,333
    )
    
    
    (63,996
    )(18,011
    )
    
    
    (20,649
    )
    
    
    (41,432
    )
    
    
    (51,481
    )(Loss) income before income taxes
    
    
    (9,397
    )
    
    
    10,559
    
    
    
    11,308
    
    
    
    42,841Provision for income taxes
    
    
    (3,438
    )
    
    
    (1,151
    )
    
    
    (4,755
    )
    
    
    (3,836
    )(Loss) income from continuing operations
    
    
    (12,835
    )
    
    
    9,408
    
    
    
    6,553
    
    
    
    39,005Discontinued OperationsIncome (loss) from operations of discontinued properties
    
    
    2,467
    
    
    
    310
    
    
    
    (2,025
    )
    
    
    1,040Gain on sale of real estate
    
    
    7,634
    
    
    
    
    
    
    
    7,634
    
    
    
    Income from discontinued operations
    
    
    10,101
    
    
    
    310
    
    
    
    5,609
    
    
    
    1,040Net (Loss) income
    
    
    (2,734
    )
    
    
    9,718
    
    
    
    12,162
    
    
    
    40,045Add: Net loss (income) attributable to noncontrolling
interests
    
    
    9,100
    
    
    
    2,192
    
    
    
    3,673
    
    
    
    (676
    )Less: Net income attributable to redeemable noncontrolling
interests
    
    
    (4,530
    )
    
    
    (6,906
    )
    
    
    (16,295
    )
    
    
    (20,720
    )Net Income (Loss) Attributable to CPA®:16  Global
Shareholders
    
    $
    1,836
    
    
    $
    5,004
    
    
    $
    (460
    )
    
    $
    18,649Earnings Per Share(Loss) income from continuing operations attributable to
CPA®:16  Global shareholders
    
    $
    (0.07
    )
    
    $
    0.04
    
    
    $
    (0.05
    )
    
    $
    0.14Income from discontinued operations attributable to
CPA®:16  Global shareholders
    
    
    0.09
    
    
    
    
    
    
    
    0.05
    
    
    
    0.01Net income (loss) attributable to CPA®:16  Global
shareholders
    
    $
    0.02
    
    
    $
    0.04
    
    
    $
    
    
    
    $
    0.15Weighted Average Shares Outstanding
    
    
    122,907,481
    
    
    
    121,817,667
    
    
    
    122,791,365
    
    
    
    120,899,625Amounts Attributable to CPA®:16  Global
Shareholders(Loss) income from continuing operations, net of tax
    
    $
    (8,265
    )
    
    $
    4,694
    
    
    $
    (6,069
    )
    
    $
    17,609Income from discontinued operations, net of tax
    
    
    10,101
    
    
    
    310
    
    
    
    5,609
    
    
    
    1,040Net income (loss)
    
    $
    1,836
    
    
    $
    5,004
    
    
    $
    (460
    )
    
    $
    18,649Distributions Declared Per Share
    
    $
    0.1656
    
    
    $
    0.1647
    
    
    $
    0.4965
    
    
    $
    0.4926
  CPA®:16
 Global 9/30/2009 10-Q 3




---



##### Table of Contents



CORPORATE PROPERTY ASSOCIATES 16  GLOBAL INCORPORATED
 
 Consolidated Statements of Comprehensive Income (Loss) (Unaudited)  (in thousands)
 Three months ended September 30,
    
    
    Nine months ended September 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Net (Loss) Income
    
    $
    (2,734
    )
    
    $
    9,718
    
    
    $
    12,162
    
    
    $
    40,045Other Comprehensive Income (Loss):Foreign currency translation adjustment
    
    
    23,439
    
    
    
    (63,719
    )
    
    
    22,329
    
    
    
    (23,189
    )Change in unrealized loss on derivative instruments
    
    
    (907
    )
    
    
    (1,493
    )
    
    
    (1,264
    )
    
    
    (739
    )Change in unrealized gain (loss) on marketable securities
    
    
    5
    
    
    
    23
    
    
    
    (23
    )
    
    
    1422,537
    
    
    
    (65,189
    )
    
    
    21,042
    
    
    
    (23,914
    )Comprehensive income (loss)
    
    
    19,803
    
    
    
    (55,471
    )
    
    
    33,204
    
    
    
    16,131Amounts Attributable to Noncontrolling Interests:Net loss (income)
    
    
    9,100
    
    
    
    2,192
    
    
    
    3,673
    
    
    
    (676
    )Foreign currency translation adjustment
    
    
    (3,301
    )
    
    
    6,386
    
    
    
    (3,631
    )
    
    
    2,289Change in unrealized loss (gain) on derivative instruments
    
    
    1
    
    
    
    
    
    
    
    (27
    )
    
    
    Comprehensive loss attributable to noncontrolling
interests
    
    
    5,800
    
    
    
    8,578
    
    
    
    15
    
    
    
    1,613Amounts Attributable to Redeemable Noncontrolling
Interests:Net income
    
    
    (4,530
    )
    
    
    (6,906
    )
    
    
    (16,295
    )
    
    
    (20,720
    )Foreign currency translation adjustment
    
    
    (12,805
    )
    
    
    31,762
    
    
    
    (11,652
    )
    
    
    6,591Comprehensive (income) loss attributable to redeemable
noncontrolling interests
    
    
    (17,335
    )
    
    
    24,856
    
    
    
    (27,947
    )
    
    
    (14,129
    )Comprehensive Income (Loss) Attributable to
CPA®:16 
Global Shareholders
    
    $
    8,268
    
    
    $
    (22,037
    )
    
    $
    5,272
    
    
    $
    3,615
  CPA®:16  Global 9/30/2009 10-Q 4




---



##### Table of Contents



CORPORATE PROPERTY ASSOCIATES 16  GLOBAL INCORPORATED
 
 Consolidated Statements of Cash Flows (Unaudited)  (in thousands)
 Nine months ended September 30,2009
    
    
    2008Cash Flows  Operating ActivitiesNet income
    
    $
    12,162
    
    
    $
    40,045Adjustments to net income:Depreciation and amortization including intangible assets and deferred financing costs
    
    
    36,598
    
    
    
    35,588Straight-line rent adjustments and amortization of rent-related intangibles
    
    
    1,919
    
    
    
    1,374Income from equity investments in real estate in excess of distributions received
    
    
    626
    
    
    
    1,842Issuance of shares to affiliate in satisfaction of fees due
    
    
    8,893
    
    
    
    9,406Realized loss (gain) on foreign currency transactions, net
    
    
    755
    
    
    
    (3,025
    )Unrealized (gain) loss on foreign currency and derivative transactions, net
    
    
    (1,033
    )
    
    
    3,111Gain on sale of real estate
    
    
    (7,634
    )
    
    
    (136
    )Gain on extinguishment of debt
    
    
    (8,825
    )
    
    
    Impairment charges
    
    
    45,210
    
    
    
    Change in other operating assets and liabilities, net
    
    
    (1,023
    )
    
    
    7,911Net cash provided by operating activities
    
    
    87,648
    
    
    
    96,116Cash Flows  Investing ActivitiesDistributions from equity investments in real estate in excess of equity income
    
    
    47,390
    
    
    
    8,869Contributions to equity investments in real estate
    
    
    (62,448
    )
    
    
    (12,682
    )Acquisitions of real estate and other capital expenditures
    
    
    (131,275
    )
    
    
    (125,972
    )Funding/purchases of notes receivable
    
    
    (5,142
    )
    
    
    (4,169
    )Funds placed in escrow for future acquisition and construction of real estate
    
    
    
    
    
    
    (18,511
    )Release of funds held in escrow for acquisition and construction of real estate
    
    
    13,906
    
    
    
    39,072VAT taxes recovered in connection with acquisitions of real estate
    
    
    
    
    
    
    3,286Proceeds from sale of real estate
    
    
    27,710
    
    
    
    22,886Receipt of principal payment of mortgage note receivable
    
    
    
    
    
    
    225Payment of deferred acquisition fees to affiliate
    
    
    (9,082
    )
    
    
    (29,546
    )Net cash used in investing activities
    
    
    (118,941
    )
    
    
    (116,542
    )Cash Flows  Financing ActivitiesDistributions paid
    
    
    (60,541
    )
    
    
    (58,949
    )Distributions paid to noncontrolling interests
    
    
    (34,462
    )
    
    
    (28,511
    )Contributions from noncontrolling interests
    
    
    24,379
    
    
    
    406Proceeds from mortgages and notes payable
    
    
    78,516
    
    
    
    100,212Scheduled payments of mortgage principal
    
    
    (13,704
    )
    
    
    (11,746
    )Prepayment of mortgages and note payable
    
    
    (34,550
    )
    
    
    (4,312
    )Deferred financing costs and mortgage deposits, net of deposits refunded
    
    
    (232
    )
    
    
    (450
    )Proceeds from issuance of shares, net of costs of raising capital
    
    
    24,440
    
    
    
    23,702Purchase of treasury stock
    
    
    (30,729
    )
    
    
    (7,880
    )Net cash (used in) provided by financing activities
    
    
    (46,883
    )
    
    
    12,472Change in Cash and Cash Equivalents During the PeriodEffect of exchange rate changes on cash
    
    
    (136
    )
    
    
    (5,690
    )Net decrease in cash and cash equivalents
    
    
    (78,312
    )
    
    
    (13,644
    )Cash and cash equivalents, beginning of period
    
    
    174,209
    
    
    
    211,759Cash and cash equivalents, end of period
    
    $
    95,897
    
    
    $
    198,115
  CPA®:16  Global 9/30/2009 10-Q 5




---



##### Table of Contents



CORPORATE PROPERTY ASSOCIATES 16  GLOBAL INCORPORATED
 
 Notes to Consolidated Financial Statements (Unaudited)
 Note 1. Business
 
 Note 2. Basis of Presentation
     Basis of Consolidation
  Information about International Geographic Areas
  CPA®:16  Global 9/30/2009 10-Q 6




---



##### Table of Contents



Notes to Consolidated Financial Statements
 Future Accounting Requirements
  Note 3. Agreements and Transactions with Related Parties
  Asset Management and Performance Fees
  Transaction Fees
 ® ®
  CPA®:16  Global 9/30/2009 10-Q 7




---



##### Table of Contents



Notes to Consolidated Financial Statements
 Other Expenses
  Joint Ventures and Other Transactions with Affiliates
   ® ®
 Note 4. Real Estate
 Real Estate
  September 30, 2009
    
    
    December 31, 2008Land
    
    $
    349,402
    
    
    $
    340,216Buildings
    
    
    1,360,477
    
    
    
    1,321,427Less: Accumulated depreciation
    
    
    (103,202
    )
    
    
    (76,943
    )$
    1,606,677
    
    
    $
    1,584,700
  CPA®:16  Global 9/30/2009 10-Q 8




---



##### Table of Contents



Notes to Consolidated Financial Statements
 Operating Real Estate
  September 30, 2009
    
    
    December 31, 2008Land
    
    $
    8,296
    
    
    $
    8,296Buildings
    
    
    75,412
    
    
    
    74,480Less: Accumulated depreciation
    
    
    (5,660
    )
    
    
    (3,306
    )$
    78,048
    
    
    $
    79,470
 Other
  Note 5. Equity Investments in Real Estate
   CPA®:16  Global 9/30/2009 10-Q 9




---



##### Table of Contents



Notes to Consolidated Financial Statements
  Ownership Interest at
    
    
    Carrying Value atLessee
    
    September 30, 2009
    
    
    September 30, 2009
    
    
    December 31, 2008Equity Investments in Real Estate:U-Haul Moving Partners, Inc. and Mercury Partners, L.P.
    
    
    31
    %
    
    $
    34,101
    
    
    $
    34,817The New York Times Company (a)
    
    
    27
    %
    
    
    32,779
    
    
    
    Schuler A.G. (b)
    
    
    33
    %
    
    
    24,187
    
    
    
    22,982Hellweg Die Profi-Baumarkte GmbH & Co. KG (Hellweg 1)
(b)
    
    
    25
    %
    
    
    16,588
    
    
    
    16,058Police Prefecture, French Government (b) (c)
    
    
    50
    %
    
    
    8,929
    
    
    
    13,310TietoEnator Plc (b)
    
    
    40
    %
    
    
    8,083
    
    
    
    8,385OBI A.G. (b) (d)
    
    
    25
    %
    
    
    6,925
    
    
    
    8,829Pohjola Non-life Insurance Company (b) (c)
    
    
    40
    %
    
    
    6,832
    
    
    
    7,696Frontier Spinning Mills, Inc. (e)
    
    
    40
    %
    
    
    6,216
    
    
    
    15,551Actebis Peacock GmbH (b)
    
    
    30
    %
    
    
    5,733
    
    
    
    5,833Actuant Corporation (b)
    
    
    50
    %
    
    
    2,776
    
    
    
    2,845Lindenmaier A.G. (b) (f)
    
    
    33
    %
    
    
    2,908
    
    
    
    4,565Consolidated Systems, Inc.
    
    
    40
    %
    
    
    2,136
    
    
    
    2,164Thales S.A. (b) (g)
    
    
    35
    %
    
    
    1,667
    
    
    
    159,860
    
    
    
    143,035ADC Equity Arrangement:Soho House Beach House LLC (h)
    
    
    N/A
    
    
    
    
    
    
    
    42,085$
    159,860
    
    
    $
    185,120
 
 (a)
    
    We acquired our interest in this investment during the first quarter of 2009 (Note 6).(b)
    
    Carrying value of investment is affected by the impact of fluctuations in the exchange rate
of the Euro.(c)
    
    The decrease in carrying value was primarily due to cash distributions made to us by the
venture.(d)
    
    Carrying value of investment included our share of the net loss on interest rate swap
derivative instruments recognized by the venture.(e)
    
    In July 2009, this venture obtained mortgage financing of $23.4 million and distributed the
proceeds to the venture partners.(f)
    
    Lindenmaier A.G. filed for bankruptcy in Germany in April 2009. In July 2009, the venture
executed a short-term lease agreement with the tenant that reduces annual rent by
approximately $1.9 million and expires in February 2010. We recognized other-than-temporary
impairment charges of $1.3 million in connection with this venture during the three and nine
months ended September 30, 2009 and $1.4 million during the fourth quarter of 2008 (Note 9).(g)
    
    In July 2009, this venture sold four of its five properties back to the tenant for $46.6
million and recognized a gain on sale of $11.1 million. The proceeds were used to partially
repay the existing non-recourse mortgage loan on these properties, which had an outstanding
balance of $74.7 million as of the date of the sale. The remaining loan balance of $28.1
million is collateralized by the unsold fifth property.(h)
    
    The ADC equity arrangement provided for a fixed annual interest rate of 5.8% and was
scheduled to mature in April 2010. We were committed to purchase the property at a fixed price
upon completion, and the borrower had little or no equity in the transaction. At December 31,
2008, we had funded $37.0 million of our total commitment of
$62.5 million. We consolidated this investment in our financial
statements at September 30, 2009. CPA®:16  Global 9/30/2009 10-Q 10




---



##### Table of Contents



Notes to Consolidated Financial Statements
  September 30, 2009
    
    
    December 31, 2008Assets
    
    $
    1,692,839
    
    
    $
    1,388,116Liabilities
    
    
    (1,024,089
    )
    
    
    (911,235
    )Partners/members equity
    
    $
    668,750
    
    
    $
    476,881
 Three months ended September 30,
    
    
    Nine months ended September 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Revenues
    
    $
    31,625
    
    
    $
    31,232
    
    
    $
    96,448
    
    
    $
    93,011Expenses
    
    
    (21,515
    )
    
    
    (23,131
    )
    
    
    (64,274
    )
    
    
    (68,350
    )Impairment charges (a)
    
    
    (12,095
    )
    
    
    (13,214
    )
    
    
    (12,095
    )
    
    
    (13,214
    )Gain on sale of real estate (b)
    
    
    11,084
    
    
    
    
    
    
    
    11,084
    
    
    
    Net income
(loss)
    
    $
    9,099
    
    
    $
    (5,113
    )
    
    $
    31,163
    
    
    $
    11,447
 
 (a)
    
    For the three and nine months ended September 30, 2009, reflects impairment charges incurred
by a venture that leases properties to Lindenmaier A.G. as a result of the tenants bankruptcy
filing. For the three and nine months ended September 30, 2008, reflects impairment charges
incurred by a venture that leases property to Thales S.A. in connection with two properties
that had been vacated by the tenant. See Note 9 for a discussion of other-than-temporary
impairment charges incurred on our equity investments in real estate during the three and nine
months ended September 30, 2009 and 2008, respectively.(b)
    
    Gain on sale of real estate for the three and nine months ended September 30, 2009 relates to
the sale of properties back to Thales S.A. in July 2009. See Note (g) to the prior table
above.  Note 6. Acquisitions of Real Estate-Related Investments
    CPA®:16  Global 9/30/2009 10-Q 11




---



##### Table of Contents



Notes to Consolidated Financial Statements
 Real Estate Acquired
 2009 
 2008 
 Equity Investment in Real Estate Acquired
 2009  ®
 Real Estate Under Construction
  Note 7. Fair Value Measurements
  CPA®:16  Global 9/30/2009 10-Q 12




---



##### Table of Contents



Notes to Consolidated Financial Statements
  Fair Value Measurements at Reporting Date Using:Quoted Prices inActive Markets for
    
    
    Significant Other
    
    
    UnobservableIdentical Assets
    
    
    Observable Inputs
    
    
    InputsDescription
    
    September 30, 2009
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Assets:Money market funds
    
    $
    67,805
    
    
    $
    67,805
    
    
    $
    
    
    
    $
    Marketable securities
    
    
    1,935
    
    
    
    
    
    
    
    
    
    
    
    1,935Derivative assets
    
    
    3,358
    
    
    
    
    
    
    
    78
    
    
    
    3,280$
    73,098
    
    
    $
    67,805
    
    
    $
    78
    
    
    $
    5,215Liabilities:Derivative liabilities
    
    $
    (559
    )
    
    $
    
    
    
    $
    (559
    )
    
    $
    
 Fair Value Measurements at Reporting Date Using:Quoted Prices inActive Markets for
    
    
    Significant Other
    
    
    UnobservableIdentical Assets
    
    
    Observable Inputs
    
    
    InputsDescription
    
    December 31, 2008
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Assets:Money market funds
    
    $
    137,203
    
    
    $
    137,203
    
    
    $
    
    
    
    $
    Marketable securities
    
    
    2,192
    
    
    
    
    
    
    
    
    
    
    
    2,192Derivative assets
    
    
    2,973
    
    
    
    
    
    
    
    
    
    
    
    2,973$
    142,368
    
    
    $
    137,203
    
    
    $
    
    
    
    $
    5,165Liabilities:Derivative liabilities
    
    $
    (520
    )
    
    $
    
    
    
    $
    (520
    )
    
    $
    
  Fair Value Measurements Using Significant Unobservable Inputs (Level 3 Only)Marketable
    
    
    Derivative
    
    
    Total
    
    
    Marketable
    
    
    Derivative
    
    
    TotalSecurities
    
    
    Assets
    
    
    Assets
    
    
    Securities
    
    
    Assets
    
    
    AssetsThree months ended September 30, 2009
    
    
    Three months ended September 30, 2008Beginning balance
    
    $
    2,008
    
    
    $
    4,373
    
    
    $
    6,381
    
    
    $
    2,280
    
    
    $
    8,141
    
    
    $
    10,421Total gains or losses (realized and unrealized):Included in earnings
    
    
    
    
    
    
    (1,103
    )
    
    
    (1,103
    )
    
    
    
    
    
    
    (4,184
    )
    
    
    (4,184
    )Included in other comprehensive income
    
    
    6
    
    
    
    10
    
    
    
    16
    
    
    
    23
    
    
    
    (401
    )
    
    
    (378
    )Amortization and accretion
    
    
    (79
    )
    
    
    
    
    
    
    (79
    )
    
    
    (76
    )
    
    
    
    
    
    
    (76
    )Ending balance
    
    $
    1,935
    
    
    $
    3,280
    
    
    $
    5,215
    
    
    $
    2,227
    
    
    $
    3,556
    
    
    $
    5,783The amount of total gains or losses for the period
included in earnings attributable to the change in
unrealized gains or losses relating to assets
still held at the reporting date
    
    $
    
    
    
    $
    (1,103
    )
    
    $
    (1,103
    )
    
    $
    
    
    
    $
    (4,184
    )
    
    $
    (4,184
    )
 CPA®:16  Global 9/30/2009 10-Q 13




---



##### Table of Contents



Notes to Consolidated Financial Statements
 Fair Value Measurements Using Significant Unobservable Inputs (Level 3 Only)Marketable
    
    
    Derivative
    
    
    Total
    
    
    Marketable
    
    
    Derivative
    
    
    TotalSecurities
    
    
    Assets
    
    
    Assets
    
    
    Securities
    
    
    Assets
    
    
    AssetsNine months ended September 30,  2009
    
    
    Nine months ended September 30, 2008Beginning balance
    
    $
    2,192
    
    
    $
    2,973
    
    
    $
    5,165
    
    
    $
    2,438
    
    
    $
    6,246
    
    
    $
    8,684Total gains or losses (realized and unrealized):Included in earnings
    
    
    
    
    
    
    247
    
    
    
    247
    
    
    
    
    
    
    
    (2,735
    )
    
    
    (2,735
    )Included in other comprehensive income
    
    
    (23
    )
    
    
    60
    
    
    
    37
    
    
    
    14
    
    
    
    45
    
    
    
    59Amortization and accretion
    
    
    (234
    )
    
    
    
    
    
    
    (234
    )
    
    
    (225
    )
    
    
    
    
    
    
    (225
    )Ending balance
    
    $
    1,935
    
    
    $
    3,280
    
    
    $
    5,215
    
    
    $
    2,227
    
    
    $
    3,556
    
    
    $
    5,783The amount of total gains or losses for the period
included in earnings attributable to the change in
unrealized gains or losses relating to assets
still held at the reporting date
    
    $
    
    
    
    $
    247
    
    
    $
    247
    
    
    $
    
    
    
    $
    (2,735
    )
    
    $
    (2,735
    )
    September 30, 2009
    
    
    December 31, 2008Carrying Value
    
    
    Fair Value
    
    
    Carrying Value
    
    
    Fair ValueNon-recourse debt
    
    $
    1,463,573
    
    
    $
    1,227,637
    
    
    $
    1,438,226
    
    
    $
    1,202,552Notes receivable
    
    
    368,594
    
    
    
    365,975
    
    
    
    351,200
    
    
    
    341,238Marketable securities
(a)
    
    
    1,919
    
    
    
    1,935
    
    
    
    2,153
    
    
    
    2,192
 
 (a)
    
    Carrying value represents historical cost for marketable securities.  Note 8. Risk Management and Use of Derivative Financial Instruments
 Risk Management
  CPA®:16  Global 9/30/2009 10-Q 14




---



##### Table of Contents



Notes to Consolidated Financial Statements
 Foreign Currency Exchange
  Use of Derivative Financial Instruments
    Balance Sheet
    
    Asset Derivatives Fair Value at
    
    
    Liability Derivatives Fair Value atLocation
    
    September 30, 2009
    
    
    December 31, 2008
    
    
    September 30, 2009
    
    
    December 31, 2008Derivatives designated as hedging
instrumentsInterest rate caps
    
    Other assets
    
    $
    78
    
    
    $
    
    
    
    $
    
    
    
    $
    Foreign exchange contracts
    
    Other liabilities
    
    
    
    
    
    
    
    
    
    
    (229
    )
    
    
    Interest rate swaps
    
    Other liabilities
    
    
    
    
    
    
    
    
    
    
    (330
    )
    
    
    (520
    )78
    
    
    
    
    
    
    
    (559
    )
    
    
    (520
    )Derivatives not designated as hedging
instrumentsEmbedded credit derivatives
    
    Other assets
    
    
    1,957
    
    
    
    2,095
    
    
    
    
    
    
    
    Stock warrants
    
    Other assets
    
    
    1,323
    
    
    
    878
    
    
    
    
    
    
    
    3,280
    
    
    
    2,973
    
    
    
    
    
    
    
    Total derivatives
    
    
    
    $
    3,358
    
    
    $
    2,973
    
    
    $
    (559
    )
    
    $
    (520
    )
 CPA®:16  Global 9/30/2009 10-Q 15




---



##### Table of Contents



Notes to Consolidated Financial Statements
  Amount of Gain (Loss)
    
    
    Amount of Gain (Loss)Recognized in OCI on Derivative
    
    
    Reclassified from OCI into Income(Effective Portion)
    
    
    (Effective Portion)Derivatives in Cash Flow Hedging
    
    Three months ended September 30,
    
    
    Three months ended September 30,Relationships
    
    2009
    
    
    2008
    
    
    2009
    
    
    2008Interest rate caps (a) (b)
    
    $
    (3
    )
    
    $
    
    
    
    $
    
    
    
    $
    Interest rate swaps (a)
    
    
    (71
    )
    
    
    (55
    )
    
    
    
    
    
    
    Foreign currency forward contracts
(a) (c)
    
    
    (87
    )
    
    
    
    
    
    
    
    
    
    
    Total
    
    $
    (161
    )
    
    $
    (55
    )
    
    $
    
    
    
    $
    
 Amount of Gain (Loss)
    
    
    Amount of Gain (Loss)Recognized in OCI on Derivative
    
    
    Reclassified from OCI into Income(Effective Portion)
    
    
    (Effective Portion)Derivatives in Cash Flow Hedging
    
    Nine months ended September 30,
    
    
    Nine months ended September 30,Relationships
    
    2009
    
    
    2008
    
    
    2009
    
    
    2008Interest rate caps (a) (b)
    
    $
    54
    
    
    $
    
    
    
    $
    
    
    
    $
    Interest rate swaps (a)
    
    
    190
    
    
    
    (81
    )
    
    
    
    
    
    
    Foreign currency forward contracts
(a) (c)
    
    
    (229
    )
    
    
    
    
    
    
    27
    
    
    
    Total
    
    $
    15
    
    
    $
    (81
    )
    
    $
    27
    
    
    $
    
 (a)
    
    During the three and nine months ended September 30, 2009 and 2008, no gains or losses were
reclassified from OCI into income related to ineffective portions of hedging relationships or
to amounts excluded from effectiveness testing.(b)
    
    Includes gains attributable to noncontrolling interests totaling less than $0.1 million for
both the three and nine months ended September 30, 2009. We obtained this interest rate cap in
March 2009.(c)
    
    Gains (losses) reclassified from OCI into income are included in Other income and expenses. Amount of Gain (Loss) Recognized in Income on DerivativesDerivatives not in Cash Flow
    
    Location of Gain (Loss)
    
    Three months ended September 30,
    
    
    Nine months ended September 30,Hedging Relationships
    
    Recognized in Income
    
    2009
    
    
    2008
    
    
    2009
    
    
    2008Embedded credit
derivatives (a)
    
    Other income and (expenses)
    
    $
    (1,292
    )
    
    $
    (4,184
    )
    
    $
    (199
    )
    
    $
    (2,964
    )Stock warrants
    
    Other income and (expenses)
    
    
    189
    
    
    
    
    
    
    
    446
    
    
    
    229Total
    
    
    
    $
    (1,103
    )
    
    $
    (4,184
    )
    
    $
    247
    
    
    $
    (2,735
    )
 (a)
    
    Includes losses attributable to noncontrolling interests totaling $1.0 million and $3.1
million for the three months ended September 30, 2009 and 2008, respectively, and $0.1 million
and $2.2 million for the nine months ended September 30, 2009 and 2008, respectively.  Interest Rate Swaps and Caps
  CPA®:16  Global 9/30/2009 10-Q 16




---



##### Table of Contents



Notes to Consolidated Financial Statements
  Notional
    
    
    Effective
    
    
    Effective
    
    
    Expiration
    
    
    Fair Value atType
    
    Amount
    
    
    Interest Rate
    
    
    Date
    
    
    Date
    
    
    September 30, 20091-Month LIBOR
    
    Pay-fixed swap
    
    $
    4,000
    
    
    
    6.7
    %
    
    
    2/2008
    
    
    
    2/2018
    
    
    $
    (330
    )1-Month LIBOR
    
    Interest rate cap (a)
    
    
    29,000
    
    
    
    5.0
    %
    
    
    3/2009
    
    
    
    3/2012
    
    
    
    78$
    (252
    )
 (a)
    
    In February 2009, a venture in which we own a 50% interest, and which we consolidate, repaid
a $39.0 million outstanding balance on a non-recourse mortgage loan at a discount for $32.5
million and recognized a corresponding gain of $6.5 million. In connection with this
transaction, the venture obtained new non-recourse mortgage financing of approximately $29.0
million. The new debt has an annual interest rate of LIBOR plus 5%, with a minimum rate of 6%
and a maximum rate that has been capped at 10% through the use of an interest rate cap. This
financing has a term of three years, with two one-year extensions. The applicable interest
rate of the related debt was 6.6% at September 30, 2009, and therefore the interest rate cap
was not being utilized at that date.   Foreign Currency Forward Contracts
   Embedded Credit Derivatives
  Stock Warrants
  Other
  CPA®:16  Global 9/30/2009 10-Q 17




---



##### Table of Contents



Notes to Consolidated Financial Statements
  Portfolio Concentration Risk
     Note 9. Impairment Charges
  CPA®:16  Global 9/30/2009 10-Q 18




---



##### Table of Contents



Notes to Consolidated Financial Statements
  Three months ended
    
    
    Nine months endedImpairment Charges
    
    September 30, 2009
    
    

September 30, 2009Net investments in properties
    
    $
    24,125
    
    
    $
    40,109Equity investments in real estate (a)
    
    
    1,284
    
    
    
    297Total impairment charges included in income from
continuing operations
    
    
    25,409
    
    
    
    40,406Impairment charges included in discontinued operations
    
    
    
    
    
    
    5,101Total impairment charges
    
    $
    25,409
    
    
    $
    45,507
 (a)
    
    Impairment charges on our equity investments are included in
Income from equity investments in real estate on our consolidated
statements of operations.
  Görtz & Schiele GmbH & Co. and Goertz & Schiele Corp.
  Foss Manufacturing Company, LLC
  Lindenmaier A.G.
  John McGavigan Limited
 MetalsAmerica, Inc.
 Other
  CPA®:16  Global 9/30/2009 10-Q 19




---



##### Table of Contents



Notes to Consolidated Financial Statements
 Note 10. Noncontrolling Interests
   CPA®:16  Global
    
    
    NoncontrollingTotal
    
    
    Shareholders
    
    
    InterestsBalance at January 1, 2008
    
    $
    1,094,653
    
    
    $
    1,021,097
    
    
    $
    73,556Shares issued
    
    
    44,633
    
    
    
    44,633
    
    
    
    Contributions
    
    
    24,396
    
    
    
    
    
    
    
    24,396Net income
    
    
    20,601
    
    
    
    20,262
    
    
    
    339Distributions
    
    
    (87,842
    )
    
    
    (79,719
    )
    
    
    (8,123
    )Change in other comprehensive
income (loss)
    
    
    (33,224
    )
    
    
    (29,765
    )
    
    
    (3,459
    )Shares repurchased
    
    
    (16,612
    )
    
    
    (16,612
    )
    
    
    Balance at January 1, 2009
    
    
    1,046,605
    
    
    
    959,896
    
    
    
    86,709Shares issued
    
    
    33,333
    
    
    
    33,333
    
    
    
    Contributions
    
    
    24,379
    
    
    
    
    
    
    
    24,379Net loss
    
    
    (4,133
    )
    
    
    (460
    )
    
    
    (3,673
    )Distributions
    
    
    (75,101
    )
    
    
    (60,637
    )
    
    
    (14,464
    )Change in other comprehensive
income (loss)
    
    
    9,390
    
    
    
    5,732
    
    
    
    3,658Shares repurchased
    
    
    (30,729
    )
    
    
    (30,729
    )
    
    
    Balance at September 30, 2009
    
    $
    1,003,744
    
    
    $
    907,135
    
    
    $
    96,609
 Redeemable Noncontrolling Interests
   Balance at January 1, 2008
    
    $
    346,718Foreign currency translation adjustment
    
    
    (14,877
    )Balance at January 1, 2009
    
    
    331,841Foreign currency translation adjustment
    
    
    11,653Balance at September 30, 2009
    
    $
    343,494
 CPA®:16  Global 9/30/2009 10-Q 20




---



##### Table of Contents



Notes to Consolidated Financial Statements
 Note 11. Income Taxes
     Note 12. Discontinued Operations
    CPA®:16  Global 9/30/2009 10-Q 21




---



##### Table of Contents



Notes to Consolidated Financial Statements
  Three months ended September 30,
    
    
    Nine months ended September 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Revenues
    
    $
    363
    
    
    $
    1,084
    
    
    $
    2,643
    
    
    $
    3,343Expenses
    
    
    (209
    )
    
    
    (774
    )
    
    
    (1,880
    )
    
    
    (2,303
    )Gain on sale of assets
    
    
    7,634
    
    
    
    
    
    
    
    7,634
    
    
    
    Gain on extinguishment of debt
    
    
    2,313
    
    
    
    
    
    
    
    2,313
    
    
    
    Impairment charges
    
    
    
    
    
    
    
    
    
    
    (5,101
    )
    
    
    Income from discontinued operations
    
    $
    10,101
    
    
    $
    310
    
    
    $
    5,609
    
    
    $
    1,040
 CPA®:16  Global 9/30/2009 10-Q 22




---



##### Table of Contents



Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
  Business Overview
  Financial Highlights
  Three months ended September 30,
    
    
    Nine months ended September 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Total revenues
    
    $
    60,672
    
    
    $
    60,270
    
    
    $
    175,317
    
    
    $
    175,947Net income (loss) attributable to
CPA®:16  Global shareholders
(a)
    
    
    1,836
    
    
    
    5,004
    
    
    
    (460
    )
    
    
    18,649Cash flow from operating activities (b)
    
    
    
    
    
    
    
    
    
    
    87,648
    
    
    
    96,116
 
 (a)
    
    Net income (loss) attributable to CPA®:16  Global shareholders for the three and
nine months ended September 30, 2009 reflected the recognition of impairment charges totaling
$25.4 million and $45.5 million, respectively, which were partially offset by the recognition
of gains on the sale of real estate and extinguishment of debt totaling $9.9 million and $8.8
million, respectively. See Note 9 for a discussion of these impairment charges.(b)
    
    Decrease in cash flows from operating activities in the current year period compared to the
prior year period was primarily due to increases in rent delinquencies and carrying costs of
distressed properties.   Current Trends
   CPA®:16  Global 9/30/2009 10-Q 23




---



##### Table of Contents



Financing Conditions
   Corporate Defaults
    Net Asset Values
  Redemptions
  CPA®:16  Global 9/30/2009 10-Q 24




---



##### Table of Contents



Inflation and Foreign Exchange Rates
   Results of Operations
  Nine months ended September 30,2009
    
    
    2008Rental income
    
    $
    113,112
    
    
    $
    111,372Interest income from direct financing leases
    
    
    20,833
    
    
    
    22,089$
    133,945
    
    
    $
    133,461
 CPA®:16  Global 9/30/2009 10-Q 25




---



##### Table of Contents



Nine months ended September 30,Lessee
    
    2009
    
    
    2008Hellweg Die Profi-Baumarkte GmbH & Co. KG (Hellweg 2) (a) (b) (c)
    
    
    26,362
    
    
    
    28,845Telcordia Technologies, Inc.
    
    
    7,002
    
    
    
    6,943Nordic Cold Storage LLC(d)
    
    
    5,080
    
    
    
    4,676Berry Plastics Corporation (c)
    
    
    4,981
    
    
    
    4,991Fraikin SAS (b)
    
    
    4,379
    
    
    
    4,592The Talaria Company (Hinckley) (c)
    
    
    3,896
    
    
    
    3,725MetoKote Corp., MetoKote Canada Limited and MetoKote de Mexico(b) (d) (e)
    
    
    3,502
    
    
    
    3,100International Aluminum Corp. and United States Aluminum of Canada Ltd. (b)
    
    
    3,376
    
    
    
    3,312Huntsman International, LLC
    
    
    3,011
    
    
    
    3,011Best Brands Corp. (f)
    
    
    2,982
    
    
    
    2,131Ply Gem Industries, Inc. (b)
    
    
    2,890
    
    
    
    2,859LFD Manufacturing Ltd., IDS Logistics (Thailand) Ltd. and IDS Manufacturing SDN BHD (b)
    
    
    2,862
    
    
    
    3,131Görtz & Schiele GmbH & Co. and Goertz & Schiele Corp. (b) (c) (e) (g)
    
    
    2,761
    
    
    
    2,772TRW Vehicle Safety Systems Inc. (e)
    
    
    2,676
    
    
    
    2,676Bobs Discount Furniture, LLC
    
    
    2,658
    
    
    
    2,658Universal Technical Institute of California, Inc.
    
    
    2,564
    
    
    
    2,564Kings Super Markets Inc.
    
    
    2,562
    
    
    
    2,562Performance Fibers GmbH(b)
    
    
    2,510
    
    
    
    2,749Finisar Corporation
    
    
    2,466
    
    
    
    2,453Dicks Sporting Goods, Inc. (c)
    
    
    2,347
    
    
    
    2,347Foss Manufacturing Company, LLC (h)
    
    
    2,249
    
    
    
    2,627Willy Voit GmbH & Co. Stanz-und Metallwerk (b) (e)
    
    
    2,025
    
    
    
    2,235Other (b) (d) (e)
    
    
    38,804
    
    
    
    36,502$
    133,945
    
    
    $
    133,461
 
 (a)
    
    We also own an equity investment in other properties leased to this tenant through a 2005
transaction.(b)
    
    Amounts are subject to fluctuations in foreign currency exchange rates. The average rate for
the U.S. dollar in relation to the Euro during the nine months ended September 30, 2009
strengthened by approximately 10% in comparison to the same period in 2008, resulting in a
negative impact on lease revenues for our Euro-denominated investments in the current year
period.(c)
    
    These revenues are generated in consolidated ventures, generally with our affiliates, and
include lease revenues applicable to noncontrolling interests totaling $29.7 million and $30.9
million for the nine months ended September 30, 2009 and 2008, respectively.(d)
    
    Increase was due to CPI-based (or equivalent) rent increase.(e)
    
    Tenant operates in the automotive industry. Included in Other are lease revenues from two
additional tenants operating in the automotive industry totaling $2.3 million and $2.6 million
for the nine months ended September 30, 2009 and 2008, respectively.(f)
    
    We acquired our interest in this investment during 2008.(g)
    
    Görtz & Schiele GmbH & Co. and Goertz & Schiele Corporation filed for bankruptcy in November
2008 and September 2009, respectively. Both tenants have ceased making rent payments and, in
July 2009, we suspended debt service payments on both of the related non-recourse mortgage
loans, which have a combined outstanding balance of $23.4 million at September 30, 2009. We
incurred impairment charges totaling $17.0 million related to these properties during the nine
months ended September 30, 2009 (Note 9).(h)
    
    We incurred an impairment charge of $16.0 million on this property during the nine months
ended September 30, 2009 as a result of a significant deterioration in this tenants financial
outlook (Note 9). During the second quarter of 2009, we entered into an amended lease
agreement with Foss Manufacturing that substantially reduces annual contractual rent and
provides for us to receive additional rent based on a percentage of sales. CPA®:16  Global 9/30/2009 10-Q 26




---



##### Table of Contents



OwnershipInterest at
    
    
    Nine months ended September 30,Lessee
    
    September 30, 2009
    
    
    2009
    
    
    2008U-Haul Moving Partners, Inc. and Mercury Partners, L.P.
    
    
    31
    %
    
    $
    22,379
    
    
    $
    21,329The New York Times Company (a)
    
    
    27
    %
    
    
    15,034
    
    
    
    OBI A.G. (b)
    
    
    25
    %
    
    
    12,158
    
    
    
    13,373Hellweg Die Profi-Baumarkte GmbH & Co. KG (Hellweg 1) (b)
    
    
    25
    %
    
    
    10,914
    
    
    
    11,760Thales S.A. (b) (e)
    
    
    35
    %
    
    
    8,099
    
    
    
    11,052Pohjola Non-life Insurance Company (b)
    
    
    40
    %
    
    
    6,793
    
    
    
    7,251TietoEnator Plc(b)
    
    
    40
    %
    
    
    6,348
    
    
    
    6,821Police Prefecture, French Government (b)
    
    
    50
    %
    
    
    5,979
    
    
    
    6,247Schuler A.G. (b)
    
    
    33
    %
    
    
    4,821
    
    
    
    5,263Frontier Spinning Mills, Inc. (c)
    
    
    40
    %
    
    
    3,350
    
    
    
    Actebis Peacock GmbH (b) (c)
    
    
    30
    %
    
    
    3,044
    
    
    
    1,088Lindenmaier A.G. (b) (d)
    
    
    33
    %
    
    
    1,531
    
    
    
    2,094Consolidated Systems, Inc.
    
    
    40
    %
    
    
    1,373
    
    
    
    1,373Actuant Corporation (b)
    
    
    50
    %
    
    
    1,366
    
    
    
    1,480$
    103,189
    
    
    $
    89,131
 
 (a)
    
    We acquired our interest in this investment in March 2009.(b)
    
    Revenue amounts are subject to fluctuations in foreign currency exchange rates.(c)
    
    We acquired our interest in the Actebis Peacock venture in July 2008 and the Frontier
Spinning Mills venture in December 2008.(d)
    
    Tenant operates in the automotive industry and is operating under bankruptcy protection.(e)
    
    The venture sold four of the five properties leased to Thales in July 2009 (Note 5).  Lease Revenues
   CPA®:16  Global 9/30/2009 10-Q 27




---



##### Table of Contents



Interest Income on Notes Receivable
  Depreciation and Amortization
  Property Expenses
  General and Administrative
  Impairment Charges
    Income from Equity Investments in Real Estate
   Other Interest Income
  Gain on Extinguishment of Debt
  CPA®:16  Global 9/30/2009 10-Q 28




---



##### Table of Contents



Other Income and Expenses
    Interest Expense
  Provision for Income Taxes
  Income from Discontinued Operations
  Net Income (Loss) Attributable to CPA ® :16  Global Shareholders
 ®
 ®
 Financial Condition
 Sources and Uses of Cash During the Period
  CPA®:16  Global 9/30/2009 10-Q 29




---



##### Table of Contents



Operating Activities
  Investing Activities
  Financing Activities
   CPA®:16  Global 9/30/2009 10-Q 30




---



##### Table of Contents



Summary of Financing
  September 30, 2009
    
    
    December 31, 2008BalanceFixed rate
    
    $
    1,402,630
    
    
    $
    1,406,926Variable rate (a)
    
    
    60,943
    
    
    
    31,300Total
    
    $
    1,463,573
    
    
    $
    1,438,226Percent of total debtFixed rate
    
    
    96
    %
    
    
    98
    %Variable rate (a)
    
    
    4
    %
    
    
    2
    %100
    %
    
    
    100
    %Weighted average interest rate at end of periodFixed rate
    
    
    5.8
    %
    
    
    5.9
    %Variable rate (a)
    
    
    6.0
    %
    
    
    5.4
    %
 
 (a)
    
    Variable rate debt at September 30, 2009 included (i) $3.9 million that has been effectively
converted to a fixed rate through an interest rate swap derivative instrument (Note 8), (ii)
$29.0 million that is subject to an interest rate cap, but for which the interest rate cap was
not in effect at September 30, 2009 and (iii) $28.0 million in mortgage obligations that bore
interest at fixed rates but that have interest rate reset features that may change the
interest rates to then-prevailing market fixed rates (subject to specific caps) at certain
points during their term. No interest rate resets or expirations of interest rate swaps or
caps are scheduled to occur during the next twelve months. Cash
Resources
   Cash Requirements
  CPA®:16  Global 9/30/2009 10-Q 31




---



##### Table of Contents



Off-Balance Sheet Arrangements and Contractual Obligations
  Less than
    
    
    
    
    
    
    
    
    
    
    More thanTotal
    
    
    1 year
    
    

13 years
    
    

35 years
    
    
    5 yearsNon-recourse debt  Principal
    
    $
    1,463,573
    
    
    $
    21,771
    
    
    $
    81,547
    
    
    $
    110,195
    
    
    $
    1,250,060Deferred acquisition fees  Principal
    
    
    8,934
    
    
    
    6,252
    
    
    
    2,682
    
    
    
    
    
    
    
    Interest on borrowings and deferred acquisition fees (a)
    
    
    643,973
    
    
    
    85,875
    
    
    
    166,130
    
    
    
    156,321
    
    
    
    235,647Subordinated disposition fees(b)
    
    
    1,013
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,013Build-to-suit commitments (c)
    
    
    20,266
    
    
    
    20,266
    
    
    
    
    
    
    
    
    
    
    
    Lending commitments (d)
    
    
    1,836
    
    
    
    1,836
    
    
    
    
    
    
    
    
    
    
    
    Operating and other lease commitments (e)
    
    
    60,137
    
    
    
    1,770
    
    
    
    3,589
    
    
    
    3,641
    
    
    
    51,137$
    2,199,732
    
    
    $
    137,770
    
    
    $
    253,948
    
    
    $
    270,157
    
    
    $
    1,537,857
 
 (a)
    
    Interest on an unhedged variable rate debt obligation was calculated using the applicable
annual variable interest rate and balance outstanding as of September 30, 2009.(b)
    
    Payable to the advisor, subject to meeting contingencies, in connection with any liquidity
event.(c)
    
    Represents remaining build-to-suit commitment for two domestic projects. Estimated total
construction costs for these projects are currently projected to be $67.8 million, of which
$47.5 million was funded as of September 30, 2009.(d)
    
    Represents unfunded amount on a commitment to provide a loan to a developer of a domestic
property. The total commitment for the loan is $15.8 million, of which $14.0 million had been
funded as of September 30, 2009.(e)
    
    Operating and other lease commitments consist primarily of rent obligations under ground
leases and our share of future minimum rents payable under an office cost-sharing agreement
with certain affiliates for the purpose of leasing office space used for the administration of
real estate entities. Amounts under the cost-sharing agreement are allocated among the
entities based on gross revenues and are adjusted quarterly. Rental obligations under ground
leases are inclusive of noncontrolling interests of approximately $9.6 million.    CPA®:16  Global 9/30/2009 10-Q 32




---



##### Table of Contents



Ownership Interest
    
    
    
    
    
    
    Total ThirdLessee
    
    at September 30, 2009
    
    
    Total Assets
    
    
    Party Debt
    
    
    Maturity DateThales S.A. (a) (b)
    
    
    35
    %
    
    $
    29,182
    
    
    $
    28,471
    
    
    
    7/2011U-Haul Moving Partners, Inc. and Mercury Partners, L.P.
    
    
    31
    %
    
    
    311,365
    
    
    
    165,327
    
    
    
    5/2014Actuant Corporation (a)
    
    
    50
    %
    
    
    18,814
    
    
    
    12,316
    
    
    
    5/2014TietoEnator Plc(a)
    
    
    40
    %
    
    
    100,019
    
    
    
    77,624
    
    
    
    7/2014The New York Times Company (c)
    
    
    27
    %
    
    
    368,281
    
    
    
    119,750
    
    
    
    9/2014Pohjola Non-life Insurance Company (b)
    
    
    40
    %
    
    
    108,433
    
    
    
    87,563
    
    
    
    1/2015Hellweg Die Profi-Baumarkte GmbH & Co. KG (Hellweg 1) (a)
    
    
    25
    %
    
    
    192,461
    
    
    
    114,574
    
    
    
    5/2015Actebis Peacock GmbH (a)
    
    
    30
    %
    
    
    53,618
    
    
    
    32,754
    
    
    
    7/2015Frontier Spinning Mills, Inc.(d)
    
    
    40
    %
    
    
    65,467
    
    
    
    23,375
    
    
    
    8/2016Consolidated Systems, Inc.
    
    
    40
    %
    
    
    17,799
    
    
    
    11,579
    
    
    
    11/2016Lindenmaier A.G. (a) (e)
    
    
    33
    %
    
    
    18,673
    
    
    
    12,917
    
    
    
    10/2017OBI A.G. (a)
    
    
    25
    %
    
    
    219,003
    
    
    
    175,092
    
    
    
    3/2018Police Prefecture, French Government (a)
    
    
    50
    %
    
    
    112,609
    
    
    
    92,477
    
    
    
    8/2020Schuler A.G. (a)
    
    
    33
    %
    
    
    77,115
    
    
    
    
    
    
    
    N/A$
    1,692,839
    
    
    $
    953,819
 
 (a)
    
    Dollar amounts shown are based on the applicable exchange rate of the foreign currency as of
September 30, 2009.(b)
    
    In July 2009, this venture sold four of its five properties back to the tenant for $46.6
million and used the proceeds to partially repay the existing non-recourse mortgage loan on
these properties, which had an outstanding balance of $74.7 million as of the date of the
sale. The remaining loan balance of $28.1 million is collateralized by the unsold fifth
property.(c)
    
    We acquired our interest in this investment in March 2009. In August 2009, the venture
obtained mortgage financing on the property of $119.8 million.(d)
    
    In July 2009, this venture obtained mortgage financing of $23.4 million.(e)
    
    We recognized other-than-temporary impairment charges of $1.3 million in connection with this
venture during the three and nine months ended September 30, 2009 (Note 9). CPA®:16  Global 9/30/2009 10-Q 33




---



##### Table of Contents



Item 3. Quantitative and Qualitative Disclosures About Market Risk
 Market Risk
   Interest Rate Risk
      2009
    
    
    2010
    
    
    2011
    
    
    2012
    
    
    2013
    
    
    Thereafter
    
    
    Total
    
    
    Fair valueFixed rate debt
    
    $
    5,198
    
    
    $
    21,961
    
    
    $
    25,449
    
    
    $
    27,527
    
    
    $
    30,733
    
    
    $
    1,291,762
    
    
    $
    1,402,630
    
    
    $
    1,169,838Variable rate debt
    
    $
    106
    
    
    $
    429
    
    
    $
    434
    
    
    $
    29,438
    
    
    $
    444
    
    
    $
    30,092
    
    
    $
    60,943
    
    
    $
    57,799
 CPA®:16  Global 9/30/2009 10-Q 34




---



##### Table of Contents



Foreign Currency Exchange Rate Risk
   
 Other
  CPA®:16  Global 9/30/2009 10-Q 35




---



##### Table of Contents



Item 4T. Controls and Procedures
 Disclosure Controls and Procedures
   Changes in Internal Control over Financial Reporting
  
 PART II
 
 Item 2. Unregistered Sales of Equity Securities
   Issuer Purchases of Equity Securities:
 Maximum number (orTotal number of shares
    
    
    approximate dollar value)purchased as part of
    
    
    of shares that may yet beTotal number of
    
    
    Average price
    
    
    publicly announced
    
    
    purchased under the2009 Period
    
    shares purchased(a)
    
    
    paid per share
    
    
    plans or programs(a)
    
    
    plans or programs(a)July
    
    
    
    
    
    
    
    
    
    
    N/A
    
    
    
    N/AAugust
    
    
    
    
    
    
    
    
    
    
    N/A
    
    
    
    N/ASeptember
    
    
    1,132,300
    
    
    $
    9.11
    
    
    
    N/A
    
    
    
    N/ATotal
    
    
    1,132,300
 
 (a)
    
    Represents shares of our common stock purchased pursuant to our redemption plan. In December
2003, we announced a redemption plan under which we may elect to redeem shares at the request
of our shareholders, subject to certain conditions and limitations. The maximum amount of
shares purchasable by us in any period depends on a number of factors and is at the discretion
of our board of directors. The redemption plan will terminate if and when our shares are
listed on a national securities market. 
 Item 6. Exhibits
 Exhibit No.
    
    Description
    
    Method of Filing10.1
    
    Amended and Restated Advisory Agreement dated as of October 1, 2009 between Corporate Property
Associates 16  Global Incorporated and Carey Asset Management Corp.
    
    Filed herewith31.1
    
    Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
    
    Filed herewith31.2
    
    Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
    
    Filed herewith32
    
    Certifications of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002
    
    Filed herewith
 CPA®:16  Global 9/30/2009 10-Q 36




---



##### Table of Contents



SIGNATURES
  Corporate Property Associates 16
 Global IncorporatedDate 11/13/2009
    By:
    /s/ Mark J. DeCesarisMark J. DeCesarisManaging Director and Acting Chief
Financial Officer
(Principal Financial Officer)Date 11/13/2009
    By:
    /s/ Thomas J. Ridings, Jr.Thomas J. Ridings, Jr.Executive Director and Chief Accounting Officer
(Principal Accounting Officer) CPA®:16  Global 9/30/2009 10-Q 37