##### 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 March 31, 2011
 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
    
    Smaller reporting company o(Do not check if a smaller reporting company)
 o þ




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##### 



INDEX
 Page No.PART I  FINANCIAL INFORMATIONItem 1. Financial Statements (Unaudited)Consolidated Balance Sheets
    
    
    2Consolidated Statements of Income
    
    
    3Consolidated Statements of Comprehensive Income (Loss)
    
    
    4Consolidated Statements of Cash Flows
    
    
    5Notes to Consolidated Financial Statements
    
    
    7Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    23Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    35Item 4. Controls and Procedures
    
    
    37PART II  OTHER INFORMATIONItem 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    38Item 6. Exhibits
    
    
    38Signatures
    
    
    39Exhibit 31.1Exhibit 31.2Exhibit 32
  Forward-Looking Statements
   CPA®:16  Global 3/31/2011 10-Q  1




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##### Table of Contents



PART I
 
 Item 1.
    
    Financial Statements
 CORPORATE PROPERTY ASSOCIATES 16  GLOBAL INCORPORATED
 
  CONSOLIDATED BALANCE SHEETS

(UNAUDITED)
 (in thousands, except share amounts)
 March 31, 2011
    
    
    December 31, 2010AssetsInvestments in real estate:Real estate, at cost (inclusive of amounts attributable to consolidated variable
interest entities (VIEs) of $454,117 and $428,061, respectively)
    
    $
    1,903,866
    
    
    $
    1,730,421Operating real estate, at cost (inclusive of amounts attributable to consolidated
VIEs of $29,219 and $29,219, respectively)
    
    
    84,826
    
    
    
    84,772Accumulated depreciation (inclusive of amounts attributable to consolidated VIEs of
$43,994 and $38,981, respectively)
    
    
    (202,734
    )
    
    
    (155,580
    )Net investments in properties
    
    
    1,785,958
    
    
    
    1,659,613Net investments in direct financing leases (inclusive of amounts attributable to consolidated VIEs of
$51,221 and $49,705, respectively)
    
    
    328,997
    
    
    
    318,233Equity investments in real estate
    
    
    152,447
    
    
    
    149,614Assets held for sale
    
    
    468
    
    
    
    440Net investments in real estate
    
    
    2,267,870
    
    
    
    2,127,900Notes receivable (inclusive of amounts attributable to consolidated VIEs of
$23,196 and $21,805, respectively)
    
    
    56,858
    
    
    
    55,504Cash and cash equivalents (inclusive of amounts attributable to consolidated
VIEs of $15,389 and $17,195, respectively)
    
    
    68,257
    
    
    
    59,012Intangible assets, net (inclusive of amounts attributable to consolidated VIEs of
$27,204 and $25,900, respectively)
    
    
    198,093
    
    
    
    149,082Funds in escrow (inclusive of amounts attributable to consolidated VIEs of
$8,321 and $7,840, respectively)
    
    
    16,833
    
    
    
    15,962Other assets, net (inclusive of amounts attributable to consolidated VIEs of
$4,374 and $3,506, respectively)
    
    
    43,062
    
    
    
    30,499Total assets
    
    $
    2,650,973
    
    
    $
    2,437,959Liabilities and EquityLiabilities:Non-recourse debt (inclusive of amounts attributable to consolidated VIEs of
$450,555 and $426,783, respectively)
    
    $
    1,487,355
    
    
    $
    1,369,248Accounts payable, accrued expenses and other liabilities (inclusive of amounts
attributable to consolidated VIEs of $11,963 and $10,241, respectively)
    
    
    36,068
    
    
    
    30,875Prepaid and deferred rental income and security deposits (inclusive of amounts
attributable to consolidated VIEs of $11,748 and $11,137, respectively)
    
    
    58,036
    
    
    
    57,095Due to affiliates
    
    
    5,528
    
    
    
    7,759Distributions payable
    
    
    20,976
    
    
    
    20,826Total liabilities
    
    
    1,607,963
    
    
    
    1,485,803Redeemable noncontrolling interest
    
    
    23,196
    
    
    
    21,805Commitments and contingencies (Note 9)Equity:CPA®:16  Global shareholders equity:Common stock $0.001 par value; authorized 250,000,000 shares;
issued and outstanding, 135,951,106 and 134,708,674 shares, respectively
    
    
    136
    
    
    
    135Additional paid-in capital
    
    
    1,226,980
    
    
    
    1,216,565Distributions in excess of accumulated earnings
    
    
    (291,521
    )
    
    
    (275,948
    )Accumulated other comprehensive income (loss)
    
    
    3,112
    
    
    
    (8,460
    )Less, treasury stock at cost, 9,285,322 and 8,952,317 shares, respectively
    
    
    (83,805
    )
    
    
    (81,080
    )Total CPA®:16  Global shareholders equity
    
    
    854,902
    
    
    
    851,212Noncontrolling interests
    
    
    164,912
    
    
    
    79,139Total equity
    
    
    1,019,814
    
    
    
    930,351Total liabilities and equity
    
    $
    2,650,973
    
    
    $
    2,437,959
   CPA®:16  Global 3/31/2011 10-Q  2




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##### Table of Contents



CORPORATE PROPERTY ASSOCIATES 16  GLOBAL INCORPORATED
 
 CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)
 (in thousands, except share and per share amounts)
 Three Months Ended March 31,2011
    
    
    2010RevenuesRental Income
    
    $
    44,762
    
    
    $
    38,468Interest income from direct financing leases
    
    
    6,789
    
    
    
    6,727Other operating income
    
    
    1,391
    
    
    
    606Interest income on notes receivable
    
    
    745
    
    
    
    7,142Other real estate income
    
    
    6,088
    
    
    
    5,95359,775
    
    
    
    58,896Operating ExpensesGeneral and administrative
    
    
    (4,783
    )
    
    
    (2,263
    )Depreciation and amortization
    
    
    (15,320
    )
    
    
    (12,189
    )Property expenses
    
    
    (8,183
    )
    
    
    (7,983
    )Other real estate expenses
    
    
    (4,521
    )
    
    
    (4,431
    )Impairment charges
    
    
    
    
    
    
    (8,030
    )(32,807
    )
    
    
    (34,896
    )Other Income and ExpensesOther interest income
    
    
    28
    
    
    
    22Income from equity investments in real estate
    
    
    4,317
    
    
    
    4,781Other income and (expenses)
    
    
    765
    
    
    
    (741
    )Interest expense
    
    
    (21,363
    )
    
    
    (19,709
    )(16,253
    )
    
    
    (15,647
    )Income from continuing operations before income taxes
    
    
    10,715
    
    
    
    8,353Provision for income taxes
    
    
    (2,976
    )
    
    
    (969
    )Income from continuing operations
    
    
    7,739
    
    
    
    7,384Discontinued OperationsIncome (loss) from operations of discontinued properties
    
    
    44
    
    
    
    (54
    )Gain on deconsolidation of a subsidiary
    
    
    
    
    
    
    7,082Income from discontinued operations
    
    
    44
    
    
    
    7,028Net Income
    
    
    7,783
    
    
    
    14,412Less: Net income attributable to noncontrolling interests
    
    
    (1,960
    )
    
    
    (2,007
    )Less: Net income attributable to redeemable noncontrolling interests
    
    
    (421
    )
    
    
    (6,445
    )Net Income Attributable to CPA®:16  Global
Shareholders
    
    $
    5,402
    
    
    $
    5,960Earnings Per ShareIncome from continuing operations
attributable to CPA®:16  Global shareholders
    
    $
    0.04
    
    
    $
    0.02Income from discontinued operations
attributable to CPA®:16  Global shareholders
    
    
    
    
    
    
    0.03Net Income attributable to CPA®:16  Global shareholders
    
    $
    0.04
    
    
    $
    0.05Weighted Average Shares Outstanding
    
    
    126,546,584
    
    
    
    123,608,911Amounts Attributable to CPA®:16  Global
shareholdersIncome from continuing operations, net of tax
    
    $
    5,380
    
    
    $
    2,506Income from discontinued operations, net of tax
    
    
    22
    
    
    
    3,454Net Income
    
    $
    5,402
    
    
    $
    5,960Distributions Declared Per Share
    
    $
    0.1656
    
    
    $
    0.1656
   CPA®:16  Global 3/31/2011 10-Q  3




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CORPORATE PROPERTY ASSOCIATES 16  GLOBAL INCORPORATED
 
 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)
 (in thousands)
 Three Months Ended March 31,2011
    
    
    2010Net Income
    
    $
    7,783
    
    
    $
    14,412Other Comprehensive Income (Loss):Foreign currency translation adjustments
    
    
    15,338
    
    
    
    (35,177
    )Change in unrealized appreciation on marketable securities
    
    
    (6
    )
    
    
    3Change in unrealized gain (loss) on derivative instruments
    
    
    1,294
    
    
    
    (1,062
    )16,626
    
    
    
    (36,236
    )Comprehensive income (loss)
    
    
    24,409
    
    
    
    (21,824
    )Amounts Attributable to Noncontrolling Interests:Net income
    
    
    (1,960
    )
    
    
    (2,007
    )Foreign currency translation adjustments
    
    
    (3,662
    )
    
    
    3,150Change in unrealized loss on derivative instruments
    
    
    
    
    
    
    18Comprehensive (income) loss attributable to noncontrolling interests
    
    
    (5,622
    )
    
    
    1,161Amounts Attributable to Redeemable Noncontrolling Interests:Net income
    
    
    (421
    )
    
    
    (6,445
    )Foreign currency translation adjustments
    
    
    (1,391
    )
    
    
    20,668Comprehensive (income) loss attributable to redeemable noncontrolling interests
    
    
    (1,812
    )
    
    
    14,223Comprehensive Income (Loss) Attributable to CPA®:16  Global Shareholders
    
    $
    16,975
    
    
    $
    (6,440
    )
   CPA®:16  Global 3/31/2011 10-Q  4




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CORPORATE PROPERTY ASSOCIATES 16  GLOBAL INCORPORATED
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)
 (in thousands)
 Three Months Ended March 31,2011
    
    
    2010Cash Flows  Operating ActivitiesNet income
    
    $
    7,783
    
    
    $
    14,412Adjustments to net income:Depreciation and amortization including intangible assets and deferred financing costs
    
    
    15,464
    
    
    
    12,421Income from equity investments in real estate in excess of distributions received
    
    
    (583
    )
    
    
    (736
    )Issuance of shares to affiliate in satisfaction of fees due
    
    
    2,939
    
    
    
    2,945Straight-line rent adjustment and amortization of rent-related intangibles
    
    
    (116
    )
    
    
    654Gain on deconsolidation of a subsidiary
    
    
    
    
    
    
    (7,082
    )Unrealized (gain) loss on foreign currency transactions and others
    
    
    (832
    )
    
    
    548Realized loss on foreign currency transactions and others
    
    
    66
    
    
    
    193Impairment charges
    
    
    
    
    
    
    8,030Net changes in other operating assets and liabilities
    
    
    2,678
    
    
    
    1,719Net cash provided by operating activities
    
    
    27,399
    
    
    
    33,104Cash Flows  Investing ActivitiesDistributions received from equity investments in real estate in excess of equity income
    
    
    768
    
    
    
    383Acquisitions of real estate and other capital expenditures
    
    
    (359
    )
    
    
    (1,080
    )Cash acquired on acquisition of  subsidiary (a)
    
    
    7,121
    
    
    
    Funding/purchases of notes receivable
    
    
    
    
    
    
    (791
    )Funds placed in escrow
    
    
    (517
    )
    
    
    (1,475
    )Funds released from escrow
    
    
    336
    
    
    
    548Payment of deferred acquisition fees to an affiliate
    
    
    (1,911
    )
    
    
    (6,261
    )Net cash provided by (used in) investing activities
    
    
    5,438
    
    
    
    (8,676
    )Cash Flows  Financing ActivitiesDistributions paid
    
    
    (20,825
    )
    
    
    (20,345
    )Contributions from noncontrolling interests
    
    
    353
    
    
    
    383Distributions to noncontrolling interests
    
    
    (3,047
    )
    
    
    (9,217
    )Scheduled payments of mortgage principal
    
    
    (7,079
    )
    
    
    (5,065
    )Deferred financing costs and mortgage deposits
    
    
    22
    
    
    
    Funds placed in escrow
    
    
    58
    
    
    
    3,733Funds released from escrow
    
    
    (8
    )
    
    
    (3,211
    )Proceeds from issuance of shares
    
    
    7,476
    
    
    
    7,677Purchase of treasury stock
    
    
    (2,725
    )
    
    
    (5,110
    )Net cash used in financing activities
    
    
    (25,775
    )
    
    
    (31,155
    )Change in Cash and Cash Equivalents During the PeriodEffect of exchange rate changes on cash
    
    
    2,183
    
    
    
    (1,318
    )Net increase (decrease) in cash and cash equivalents
    
    
    9,245
    
    
    
    (8,045
    )Cash and cash equivalents, beginning of period
    
    
    59,012
    
    
    
    83,985Cash and cash equivalents, end of period
    
    $
    68,257
    
    
    $
    75,940
   CPA®:16  Global 3/31/2011 10-Q  5




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CORPORATE PROPERTY ASSOCIATES 16  GLOBAL INCORPORATED
 CONSOLIDATED STATEMENTS OF CASH FLOWS CONTINUED (UNAUDITED)
 Non-cash investing activities
 
 (a)
    
    In January 2011, we acquired 10 properties from
Corporate Property Associates 14 Incorporated
(CPA®:14) in exchange for newly
issued shares in one of our wholly-owned subsidiaries with a fair value of $75.5 million (Note
4). The newly issued equity in our subsidiary, which is in substance
real estate, has resulted in a reduction of our effective ownership
stake in the entity from 100% to 3%. Accordingly, the
fair value of these shares has been reflected as a noncontrolling interest in our consolidated
financial statements. This non-cash transaction consisted of the acquisition and assumption of
certain assets and liabilities, respectively, and an increase in noncontrolling interest at
fair value as follows: Real estate
    
    $
    143,064Other assets
    
    
    8,211Mortgage notes payable
    
    
    (81,671
    )Accounts payable, accrued expenses and other liabilities
    
    
    (1,251
    )Noncontrolling interest
    
    
    (75,474
    )Cash acquired on issuance of additional shares in subsidiary
    
    $
    (7,121
    )
  CPA®:16  Global 3/31/2011 10-Q  6




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CORPORATE PROPERTY ASSOCIATES 16  GLOBAL INCORPORATED
 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
 Note 1. Business and Organization
 ®
 ®
 Note 2. Basis of Presentation
    Basis of Consolidation
  Information about International Geographic Areas
  Three Months Ended March 31,2011
    
    
    2010Revenues
    
    $
    26,767
    
    
    $
    26,278March 31, 2011
    
    
    December 31, 2010Net investments in real estate
    
    $
    1,062,349
    
    
    $
    913,639
  CPA®:16  Global 3/31/2011 10-Q  7




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Notes to Consolidated Financial Statements
 Note 3. Agreements and Transactions with Related Parties
 Transactions with the Advisor
  Three Months Ended March 31,2011
    
    
    2010Amounts included in operating expenses:Asset management fees (a)
    
    $
    2,941
    
    
    $
    2,931Performance fees (a)
    
    
    2,941
    
    
    
    2,931Personnel reimbursements (b)
    
    
    945
    
    
    
    840Office rent reimbursements (b)
    
    
    192
    
    
    
    198$
    7,019
    
    
    $
    6,900March 31, 2011
    
    
    December 31, 2010Unpaid transaction fees:Unpaid deferred acquisition fees (c)
    
    $
    789
    
    
    $
    2,701Subordinated disposition fees (d)
    
    
    1,013
    
    
    
    1,013$
    1,802
    
    
    $
    3,714
 
 (a)
    
    Asset management and performance fees are included in Property expenses in the consolidated
financial statements. For 2011 and 2010, the advisor elected to receive its asset management
fees in cash and 80% of its performance fees in restricted shares, with the remaining 20%
payable in cash. At March 31, 2011, the advisor owned 7,326,624 shares (5.8%) of our common
stock.(b)
    
    Personnel and office rent expenses are included in General and administrative expenses in the
consolidated financial statements. Based on gross revenues through March 31, 2011, our current
share of future annual minimum lease payments would be $0.7 million annually through 2016.(c)
    
    We did not incur any current or deferred acquisition fees during the three months ended March
31, 2011 or 2010. We paid annual deferred acquisition fee installments of $1.9 million and
$6.3 million in cash to the advisor in January 2011 and 2010, respectively.(d)
    
    These fees, which are subordinated to the performance criterion and certain other provisions
included in the advisory agreement, are deferred and are payable to the advisor only in
connection with a liquidity event. Joint Ventures and Other Transactions with Affiliates
  Merger
 ® ® ® ®
  CPA®:16  Global 3/31/2011 10-Q  8




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Notes to Consolidated Financial Statements
 Note 4. Net Investments in Properties
 Real Estate
  March 31, 2011
    
    
    December 31, 2010Land
    
    $
    365,255
    
    
    $
    338,979Buildings
    
    
    1,538,611
    
    
    
    1,391,442Less: Accumulated depreciation
    
    
    (192,315
    )
    
    
    (145,957
    )$
    1,711,551
    
    
    $
    1,584,464
  Carrefour France, SAS acquisition
 ® ®
 Operating Real Estate
  March 31, 2011
    
    
    December 31, 2010Land
    
    $
    8,296
    
    
    $
    8,296Buildings
    
    
    76,530
    
    
    
    76,476Less: Accumulated depreciation
    
    
    (10,419
    )
    
    
    (9,623
    )$
    74,407
    
    
    $
    75,149
 Other
  Note 5. Finance Receivables
   CPA®:16  Global 3/31/2011 10-Q  9




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Notes to Consolidated Financial Statements
 Notes Receivable
 Hellweg 2
  Other
   Credit Quality of Finance Receivables
   InternalCredit
    
    
    
    
    
    
    
    
    
    
    Net Investments in
    
    
    NumberQuality
    
    
    Number of Tenants
    
    
    Direct Financing Leases
    
    
    of
    
    
    Note ReceivableRating
    
    
    March 31, 2011
    
    
    December 31, 2010
    
    
    March 31, 2011
    
    
    December 31, 2010
    
    
    Obligors
    
    
    March 31, 2011
    
    
    December 31, 20101
    
    
    
    1
    
    
    
    2
    
    
    $
    7,810
    
    
    $
    39,505
    
    
    
    
    
    
    $
    
    
    
    $
    2
    
    
    
    4
    
    
    
    3
    
    
    
    85,250
    
    
    
    49,639
    
    
    
    1
    
    
    
    9,745
    
    
    
    9,7383
    
    
    
    4
    
    
    
    3
    
    
    
    29,791
    
    
    
    26,015
    
    
    
    2
    
    
    
    47,113
    
    
    
    45,7664
    
    
    
    9
    
    
    
    10
    
    
    
    206,146
    
    
    
    203,074
    
    
    
    
    
    
    
    
    
    
    
    5
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    328,997
    
    
    $
    318,233
    
    
    
    
    
    
    $
    56,858
    
    
    $
    55,504
 Note 6. Equity Investments in Real Estate
   CPA®:16  Global 3/31/2011 10-Q  10




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Notes to Consolidated Financial Statements
  Ownership Interest
    
    
    Carrying Value atLessee
    
    at March 31, 2011
    
    
    March 31, 2011
    
    
    December 31, 2010U-Haul Moving Partners, Inc. and Mercury Partners, LP
    
    
    31
    %
    
    $
    32,570
    
    
    $
    32,808The New York Times Company
    
    
    27
    %
    
    
    32,178
    
    
    
    33,888Schuler A.G. (a)(b)
    
    
    33
    %
    
    
    23,377
    
    
    
    21,892Hellweg Die Profi-Baumarkte GmbH & Co. KG (Hellweg 1)
(a)
    
    
    25
    %
    
    
    19,653
    
    
    
    18,493TietoEnator Plc (a)
    
    
    40
    %
    
    
    7,434
    
    
    
    6,921Police Prefecture, French Government (a)
    
    
    50
    %
    
    
    7,033
    
    
    
    6,636Frontier Spinning Mills, Inc.
    
    
    40
    %
    
    
    6,249
    
    
    
    6,249OBI A.G. (a)(c)
    
    
    25
    %
    
    
    5,988
    
    
    
    4,907Pohjola Non-life Insurance Company (a)
    
    
    40
    %
    
    
    5,546
    
    
    
    5,419Actebis Peacock GmbH (a)
    
    
    30
    %
    
    
    5,215
    
    
    
    5,043Actuant Corporation (a)
    
    
    50
    %
    
    
    2,757
    
    
    
    2,670Consolidated Systems, Inc. (b)
    
    
    40
    %
    
    
    2,084
    
    
    
    2,109Talaria Holdings, LLC
    
    
    27
    %
    
    
    1,170
    
    
    
    1,400Barth Europa Transporte e.K/MSR Technologies GmbH

(formerly Lindenmaier A.G.) (a)
    
    
    33
    %
    
    
    1,158
    
    
    
    1,179Thales S.A. (a)
    
    
    35
    %
    
    
    35
    
    
    
    $
    152,447
    
    
    $
    149,614
 
 (a)
    
    The carrying value of this investment is affected by the impact of fluctuations in the
exchange rate of the Euro.(b)
    
    Represents tenant-in-common interest.(c)
    
    The carrying value of this investment included our share of the Other Comprehensive Income (OCI) on interest rate
swap derivative instruments recognized by the venture.  CPA®:16  Global 3/31/2011 10-Q  11




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##### Table of Contents



Notes to Consolidated Financial Statements
  March 31, 2011
    
    
    December 31, 2010Assets
    
    $
    1,457,307
    
    
    $
    1,406,049Liabilities
    
    
    (978,634
    )
    
    
    (936,691
    )Partners/members equity
    
    $
    478,673
    
    
    $
    469,358Three Months Ended March 31,2011
    
    
    2010Revenues
    
    $
    36,703
    
    
    $
    36,028Expenses
    
    
    (22,026
    )
    
    
    (21,097
    )Net income
    
    $
    14,677
    
    
    $
    14,931
  Note 7. Fair Value Measurements
  Items Measured at Fair Value on a Recurring Basis
  Money Market Funds 
 Derivative Liabilities 
 Other Securities and Derivative Assets 
  CPA®:16  Global 3/31/2011 10-Q  12




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##### Table of Contents



Notes to Consolidated Financial Statements
  Fair Value Measurements at March 31, 2011 Using:Quoted Prices inActive Markets for
    
    
    Significant OtherIdentical Assets
    
    
    Observable Inputs
    
    
    Unobservable InputsDescription
    
    Total
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Assets:Other securities
    
    $
    1,464
    
    
    $
    
    
    
    $
    
    
    
    $
    1,464Derivative assets
    
    
    1,333
    
    
    
    
    
    
    
    
    
    
    
    1,333Total
    
    $
    2,797
    
    
    $
    
    
    
    $
    
    
    
    $
    2,797Liabilities:Derivative liabilities
    
    $
    (345
    )
    
    $
    
    
    
    $
    (345
    )
    
    $
    Total
    
    $
    (345
    )
    
    $
    
    
    
    $
    (345
    )
    
    $
    
 Fair Value Measurements at December 31, 2010 Using:Quoted Prices inActive Markets for
    
    
    Significant OtherIdentical Assets
    
    
    Observable Inputs
    
    
    Unobservable InputsDescription
    
    Total
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Assets:Money market funds
    
    $
    6,769
    
    
    $
    6,769
    
    
    $
    
    
    
    $
    Other securities
    
    
    1,553
    
    
    
    
    
    
    
    
    
    
    
    1,553Derivative assets
    
    
    1,369
    
    
    
    
    
    
    
    
    
    
    
    1,369Total
    
    $
    9,691
    
    
    $
    6,769
    
    
    $
    
    
    
    $
    2,922Liabilities:Derivative liabilities
    
    $
    (504
    )
    
    $
    
    
    
    $
    (504
    )
    
    $
    Total
    
    $
    (504
    )
    
    $
    
    
    
    $
    (504
    )
    
    $
    
  CPA®:16  Global 3/31/2011 10-Q  13




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##### Table of Contents



Notes to Consolidated Financial Statements
 Fair Value Measurements UsingSignificant Unobservable Inputs (Level 3 Only)Three Months Ended March 31, 2011
    
    
    Three Months Ended March 31, 2010Other
    
    
    Derivative
    
    
    Total
    
    
    Other
    
    
    Derivative
    
    
    TotalSecurities
    
    
    Assets
    
    
    Assets
    
    
    Securities
    
    
    Assets
    
    
    AssetsBeginning balance
    
    $
    1,553
    
    
    $
    1,369
    
    
    $
    2,922
    
    
    $
    1,851
    
    
    $
    2,178
    
    
    $
    4,029Total gains or losses (realized and
unrealized):Included in earnings
    
    
    
    
    
    
    (37
    )
    
    
    (37
    )
    
    
    
    
    
    
    (151
    )
    
    
    (151
    )Included in other
comprehensive
income (loss)
    
    
    (6
    )
    
    
    1
    
    
    
    (5
    )
    
    
    3
    
    
    
    (53
    )
    
    
    (50
    )Amortization and accretion
    
    
    (83
    )
    
    
    
    
    
    
    (83
    )
    
    
    (79
    )
    
    
    
    
    
    
    (79
    )Ending balance
    
    $
    1,464
    
    
    $
    1,333
    
    
    $
    2,797
    
    
    $
    1,775
    
    
    $
    1,974
    
    
    $
    3,749The 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
    
    $
    
    
    
    $
    (37
    )
    
    $
    (37
    )
    
    $
    
    
    
    $
    (151
    )
    
    $
    (151
    )
   March 31, 2011
    
    
    December 31, 2010Carrying Value
    
    
    Fair Value
    
    
    Carrying Value
    
    
    Fair ValueNon-recourse debt
    
    $
    1,487,355
    
    
    $
    1,427,312
    
    
    $
    1,369,248
    
    
    $
    1,314,768Notes receivable
    
    
    56,858
    
    
    
    57,026
    
    
    
    55,504
    
    
    
    55,682
  Items Measured at Fair Value on a Non-Recurring Basis
   CPA®:16  Global 3/31/2011 10-Q  14




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##### Table of Contents



Notes to Consolidated Financial Statements
  Three Months Ended March 31, 2011
    
    
    Three Months Ended March 31, 2010Total Fair Value
    
    
    Total Impairment
    
    
    Total Fair Value
    
    
    Total ImpairmentMeasurements
    
    
    Charges
    
    
    Measurements
    
    
    ChargesImpairment Charges From Continuing Operations:Net investments in properties
    
    $
    
    
    
    $
    
    
    
    $
    17,295
    
    
    $
    2,835Net investments in direct financing leases
    
    
    
    
    
    
    
    
    
    
    31,705
    
    
    
    5,195$
    
    
    
    $
    
    
    
    $
    49,000
    
    
    $
    8,030
 Note 8. Risk Management and Use of Derivative Financial Instruments
 Risk Management
  Foreign Currency Exchange
  Use of Derivative Financial Instruments
    CPA®:16  Global 3/31/2011 10-Q  15




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##### Table of Contents



Notes to Consolidated Financial Statements
  Derivatives Designated as
    
    Balance Sheet
    
    
    Asset Derivatives Fair Value at
    
    
    Liability Derivatives Fair Value atHedging Instruments
    
    Location
    
    
    March 31, 2011
    
    
    December 31, 2010
    
    
    March 31, 2011
    
    
    December 31, 2010Foreign currency collar contracts
    
    Accounts payable, accrued expenses and other liabilities
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    (106
    )Interest rate swaps
    
    Accounts payable, accrued expenses and other liabilities
    
    
    
    
    
    
    
    
    
    
    (345
    )
    
    
    (398
    )
    
    
    
    
    
    
    
    (345
    )
    
    
    (504
    )Derivatives not Designated
as Hedging InstrumentsEmbedded credit derivatives
    
    Other assets, net
    
    
    10
    
    
    
    46
    
    
    
    
    
    
    
    Stock warrants
    
    Other assets, net
    
    
    1,323
    
    
    
    1,323
    
    
    
    
    
    
    
    1,333
    
    
    
    1,369
    
    
    
    
    
    
    
    Total derivatives
    
    
    
    
    
    $
    1,333
    
    
    $
    1,369
    
    
    $
    (345
    )
    
    $
    (504
    )
  Amount of Gain (Loss) Recognized
    
    
    Amount of Gain (Loss) Reclassifiedin OCI on Derivatives (Effective Portion)
    
    
    from OCI into Income (Effective Portion)Three Months Ended March 31,
    
    
    Three Months Ended March 31,Derivatives in Cash Flow Hedging Relationships
    
    2011
    
    
    2010
    
    
    2011
    
    
    2010Interest rate swaps (a)
    
    $
    53
    
    
    $
    (50
    )
    
    $
    
    
    
    $
    Foreign currency forward contracts (a)(b)
    
    
    106
    
    
    
    123
    
    
    
    
    
    
    
    (10
    )Foreign currency collars (a)(b)
    
    
    
    
    
    
    36
    
    
    
    
    
    
    
    Total
    
    $
    159
    
    
    $
    109
    
    
    $
    
    
    
    $
    (10
    )
 
 (a)
    
    During the three months ended March 31, 2011 and 2010, 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)
    
    Gains (losses) reclassified from OCI into income for contracts that have settled 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 March 31,Hedging Relationships
    
    Recognized in Income
    
    
    2011
    
    
    2010Embedded credit derivatives (a)
    
    Other income and (expenses)
    
    $
    (37
    )
    
    $
    (205
    )Stock warrants
    
    Other income and (expenses)
    
    
    
    
    
    
    54Total
    
    
    
    
    
    $
    (37
    )
    
    $
    (151
    )
 
 (a)
    
    Included losses attributable to noncontrolling interests totaling less than $0.1 million and
$0.1 million for the three months ended March 31, 2011 and 2010, respectively.   CPA®:16  Global 3/31/2011 10-Q  16




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##### Table of Contents



Notes to Consolidated Financial Statements
 Interest Rate Swaps and Caps
   Notional
    
    
    
    
    
    
    
    
    
    
    EffectiveInterest
    
    
    Effective
    
    
    Expiration
    
    
    Fair Valueat March 31,Type
    
    
    Amount
    
    
    Cap Rate
    
    
    Spread
    
    
    Rate
    
    
    Date
    
    
    Date
    
    
    20111-Month LIBOR
    
    Pay-fixed swap
    
    $
    3,789
    
    
    
    N/A
    
    
    
    N/A
    
    
    
    6.7
    %
    
    
    2/2008
    
    
    
    2/2018
    
    
    $
    (345
    )
  OwnershipInterest at
    
    
    
    
    
    
    Notional
    
    
    
    
    
    
    
    
    
    
    EffectiveInterest
    
    
    Effective
    
    
    Expiration
    
    
    Fair Valueat March 31,March 31, 2011
    
    
    Type
    
    Amount
    
    
    Cap Rate
    
    
    Spread
    
    
    Rate
    
    
    Date
    
    
    Date
    
    
    20113-Month LIBOR
    
    
    25.0
    %
    
    Pay-fixed swap
    
    $
    164,472
    
    
    
    N/A
    
    
    
    N/A
    
    
    
    5.0%-5.6%
    
    
    
    7/2006-4/2008
    
    
    
    10/2015-7/2016
    
    
    $
    (6,348
    )3-Month LIBOR
    
    
    27.3
    %
    
    Interest rate cap
    
    
    125,000
    
    
    
    4.0
    %
    
    
    1.2
    %
    
    
    N/A
    
    
    
    3/2011
    
    
    
    8/2014
    
    
    
    730$
    (5,618
    )
 Embedded Credit Derivatives
  Stock Warrants
  Other
   Portfolio Concentration Risk
   CPA®:16  Global 3/31/2011 10-Q  17




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##### Table of Contents



Notes to Consolidated Financial Statements
   Note 9. Commitments and Contingencies
  Merger
 ®
 Note 10. Noncontrolling Interests
   CPA®:16  Global
    
    
    NoncontrollingTotal Equity
    
    
    Shareholders
    
    
    InterestsBalance at January 1, 2011
    
    $
    930,351
    
    
    $
    851,212
    
    
    $
    79,139Shares issued
    
    
    88,551
    
    
    
    10,415
    
    
    
    78,136Contributions
    
    
    353
    
    
    
    
    
    
    
    353Net income
    
    
    7,362
    
    
    
    5,402
    
    
    
    1,960Distributions
    
    
    (23,540
    )
    
    
    (20,975
    )
    
    
    (2,565
    )Effect of exchange rate change on contributions/distributions
    
    
    4,227
    
    
    
    
    
    
    
    4,227Change in other comprehensive income
    
    
    15,235
    
    
    
    11,573
    
    
    
    3,662Shares repurchased
    
    
    (2,725
    )
    
    
    (2,725
    )
    
    
    Balance at March 31, 2011
    
    $
    1,019,814
    
    
    $
    854,902
    
    
    $
    164,912
  CPA®:16  Global 3/31/2011 10-Q  18




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##### Table of Contents



Notes to Consolidated Financial Statements
 CPA®:16  Global
    
    
    NoncontrollingTotal Equity
    
    
    Shareholders
    
    
    InterestsBalance at January 1, 2010
    
    $
    976,827
    
    
    $
    888,659
    
    
    $
    88,168Shares issued
    
    
    10,622
    
    
    
    10,622
    
    
    
    Contributions
    
    
    383
    
    
    
    
    
    
    
    383Net income
    
    
    7,967
    
    
    
    5,960
    
    
    
    2,007Distributions
    
    
    (22,862
    )
    
    
    (20,435
    )
    
    
    (2,427
    )Change in other comprehensive loss
    
    
    (15,568
    )
    
    
    (12,400
    )
    
    
    (3,168
    )Shares repurchased
    
    
    (5,110
    )
    
    
    (5,110
    )
    
    
    Balance at March 31, 2010
    
    $
    952,259
    
    
    $
    867,296
    
    
    $
    84,963
 Redeemable Noncontrolling Interests
    2011
    
    
    2010Balance at January 1,
    
    $
    21,805
    
    
    $
    337,397Foreign currency translation adjustment
    
    
    1,391
    
    
    
    (20,668
    )Balance at March 31,
    
    $
    23,196
    
    
    $
    316,729
 Note 11. Impairment Charges
   Three Months Ended March 31,2011
    
    
    2010Net investments in properties
    
    $
    
    
    
    $
    2,835Net investments in direct financing leases
    
    
    
    
    
    
    5,195Total impairment charges included in income from continuing operations
    
    $
    
    
    
    $
    8,030
   CPA®:16  Global 3/31/2011 10-Q  19




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##### Table of Contents



Notes to Consolidated Financial Statements
 Note 12. Income Taxes
      Note 13. Merger
 Merger
 ®
 ® ® ® ® ® ® ® ®
 ® ®
   CPA®:16  Global 3/31/2011 10-Q  20




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##### Table of Contents



Notes to Consolidated Financial Statements
 Financing
  ® ® ® ® ®
  UPREIT Reorganization
   Note 14. Discontinued Operations
   CPA®:16  Global 3/31/2011 10-Q  21




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##### Table of Contents



Notes to Consolidated Financial Statements
  Three Months Ended March 31,2011
    
    
    2010Revenues
    
    $
    46
    
    
    $
    608Expenses
    
    
    (2
    )
    
    
    (662
    )Gain on deconsolidation of a subsidiary
    
    
    
    
    
    
    7,082Income from discontinued operations
    
    $
    44
    
    
    $
    7,028
 2010 
  CPA®:16  Global 3/31/2011 10-Q  22




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##### Table of Contents



Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations
  Business Overview
 ®
 Financial Highlights
  Three Months Ended March 31,2011
    
    
    2010Total revenues
    
    $
    59,775
    
    
    $
    58,896Net income attributable to CPA®:16  Global shareholders
    
    
    5,402
    
    
    
    5,960Cash flow from operating activities
    
    
    27,399
    
    
    
    33,104Distributions paid
    
    
    20,825
    
    
    
    20,345Supplemental financial measures:Funds from operations  as adjusted (AFFO)
    
    $
    16,218
    
    
    $
    20,264Adjusted cash flow from operating activities
    
    
    23,264
    
    
    
    29,726
  ®
 ®
     CPA®:16  Global 3/31/2011 10-Q  23




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##### Table of Contents



Current Trends
 General Economic Environment
  Foreign Exchange Rates
  Capital Markets
  Financing Conditions
  Real Estate Sector
  Net Asset Value
   CPA®:16  Global 3/31/2011 10-Q  24




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##### Table of Contents



Credit Quality of Tenants
    Inflation
  Lease Expirations and Occupancy
  Proposed Accounting Changes
    CPA®:16  Global 3/31/2011 10-Q  25




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##### Table of Contents



Results of Operations
  Three Months Ended March 31,2011
    
    
    2010Rental income
    
    $
    44,762
    
    
    $
    38,468Interest income from direct financing leases
    
    
    6,789
    
    
    
    6,727$
    51,551
    
    
    $
    45,195
  Three Months Ended March 31,Lessee
    
    2011
    
    
    2010Hellweg Die Profi-Baumarkte GmbH & Co. KG (Hellweg 2)
(a)(b)
    
    $
    8,948
    
    
    $
    8,947Carrefour France, SAS (a)(b)(c)
    
    
    6,114
    
    
    
    Telcordia Technologies, Inc.
    
    
    2,499
    
    
    
    2,343Tesco plc (a)(b)
    
    
    1,884
    
    
    
    1,894Nordic Cold Storage LLC
    
    
    1,731
    
    
    
    1,731Berry Plastics Corporation (b)
    
    
    1,675
    
    
    
    1,697Fraikin SAS (a)
    
    
    1,376
    
    
    
    1,410The Talaria Company (Hinckley) (b)(d)
    
    
    1,333
    
    
    
    1,120MetoKote Corp., MetoKote Canada Limited and MetoKote de Mexico (a)
    
    
    1,228
    
    
    
    1,207LFD Manufacturing Ltd., IDS Logistics (Thailand) Ltd. and IDS Manufacturing SDN BHD
(a)
    
    
    1,133
    
    
    
    1,043Best Brands Corp.
    
    
    1,010
    
    
    
    997Huntsman International, LLC
    
    
    1,006
    
    
    
    1,006Ply Gem Industries, Inc. (a)
    
    
    997
    
    
    
    985TRW Vehicle Safety Systems Inc.
    
    
    892
    
    
    
    892Bobs Discount Furniture, LLC
    
    
    888
    
    
    
    888Universal Technical Institute of California, Inc.
    
    
    885
    
    
    
    836Kings Super Markets Inc.
    
    
    879
    
    
    
    835International Aluminum Corp. and United States Aluminum of Canada Ltd. (a)(e)
    
    
    853
    
    
    
    1,302Performance Fibers GmbH (a)
    
    
    842
    
    
    
    841Finisar Corporation
    
    
    804
    
    
    
    805Dicks Sporting Goods, Inc. (b)
    
    
    784
    
    
    
    784Other (a)(b)
    
    
    13,790
    
    
    
    13,632$
    51,551
    
    
    $
    45,195
 
 (a)
    
    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 three months ended March 31, 2011
strengthened by approximately 1% in comparison to the same period in 2010, resulting in a
negative impact on lease revenues for our Euro-denominated investments in the current year
period.(b)
    
    These revenues are generated in consolidated ventures, generally with our affiliates, and on
a combined basis, include revenues applicable to noncontrolling interests totaling $16.9
million and $11.0 million for the three months ended March 31, 2011 and 2010, respectively.(c)
    
    We acquired this investment in January 2011.(d)
    
    This increase was due to the completion of a rent deferral agreement which was in effect
during the first quarter of 2010.(e)
    
    In January 2011, we entered into a lease agreement with the tenant to defer certain rental
payments until May 2011. On May 11, 2011, the tenant filed for bankruptcy protection.  CPA®:16  Global 3/31/2011 10-Q  26




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##### Table of Contents



Ownership Interest
    
    
    Three Months Ended March 31,Lessee
    
    at March 31, 2011
    
    
    2011
    
    
    2010U-Haul Moving Partners, Inc. and Mercury Partners, L.P.
    
    
    31
    %
    
    $
    8,122
    
    
    $
    8,122The New York Times Company
    
    
    27
    %
    
    
    7,238
    
    
    
    6,659OBI A.G. (a)
    
    
    25
    %
    
    
    4,184
    
    
    
    4,060Hellweg Die Profi-Baumarkte GmbH & Co. KG (a)
    
    
    25
    %
    
    
    3,864
    
    
    
    3,754Pohjola Non-life Insurance Company (a)
    
    
    40
    %
    
    
    2,232
    
    
    
    2,210TietoEnator Plc (a)
    
    
    40
    %
    
    
    2,102
    
    
    
    2,098Police Prefecture, French Government (a)
    
    
    50
    %
    
    
    2,004
    
    
    
    2,157Schuler A.G. (a)
    
    
    33
    %
    
    
    1,577
    
    
    
    1,595Frontier Spinning Mills, Inc.
    
    
    40
    %
    
    
    1,111
    
    
    
    1,118Thales S.A. (a)
    
    
    35
    %
    
    
    1,072
    
    
    
    1,086Actebis Peacock GmbH (a)
    
    
    30
    %
    
    
    1,005
    
    
    
    1,008Consolidated Systems, Inc.
    
    
    40
    %
    
    
    449
    
    
    
    449Actuant Corporation (a)
    
    
    50
    %
    
    
    447
    
    
    
    446Barth Europa Transporte e.K/MSR Technologies GmbH (formerly
Lindenmaier A.G.) (a)
    
    
    33
    %
    
    
    374
    
    
    
    379Talaria Holdings, LLC
    
    
    27
    %
    
    
    18
    
    
    
    $
    35,799
    
    
    $
    35,141
 
 (a)
    
    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 three months ended March 31, 2011
strengthened by approximately 1% in comparison to the same period in 2010, resulting in a
negative impact on lease revenues for our Euro-denominated investments in the current year
period. Lease Revenues
  ®
 Interest Income on Notes Receivable
  General and Administrative Expenses
   CPA®:16  Global 3/31/2011 10-Q  27




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##### Table of Contents



Depreciation and Amortization
  Impairment Charges
  Income from Equity Investments in Real Estate
   Other Income and (Expenses)
   Provision for Income Taxes
  Discontinued Operations
   Net Income Attributable to Redeemable Noncontrolling Interests
   CPA®:16  Global 3/31/2011 10-Q  28




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##### Table of Contents



Net Income  Attributable to CPA ® :16
 Global Shareholders
 ®
 Funds from Operations  as Adjusted (AFFO)
 ®
 Financial Condition
 Sources and Uses of Cash During the Period
  Operating Activities
  Investing Activities
  Financing Activities
     CPA®:16  Global 3/31/2011 10-Q  29




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##### Table of Contents



Adjusted Cash Flow from Operating Activities
  Summary of Financing
  March 31, 2011
    
    
    December 31, 2010BalanceFixed rate
    
    $
    1,389,917
    
    
    $
    1,331,869Variable rate (a)
    
    
    97,438
    
    
    
    37,379Total
    
    $
    1,487,355
    
    
    $
    1,369,248Percent of total debtFixed rate
    
    
    93
    %
    
    
    97
    %Variable rate (a)
    
    
    7
    %
    
    
    3
    %100
    %
    
    
    100
    %Weighted average interest rate at
end of periodFixed rate
    
    
    5.8
    %
    
    
    5.9
    %Variable rate (a)
    
    
    6.1
    %
    
    
    5.6
    %
 
 (a)
    
    Variable-rate debt at March 31, 2011 included (i) $3.8 million that has been effectively
converted to a fixed rate through an interest rate swap derivative instrument and (ii) $86.3
million in non-recourse mortgage loan 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. At March 31, 2011,
we have no interest rate resets or expirations of interest rate swaps or caps scheduled to
occur during the next twelve months. Cash Resources
  Cash Requirements
  Impact of Merger
   CPA®:16  Global 3/31/2011 10-Q  30




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##### 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 (a)
    
    $
    1,485,401
    
    
    $
    31,884
    
    
    $
    72,044
    
    
    $
    235,061
    
    
    $
    1,146,412Deferred acquisition fees  Principal
    
    
    789
    
    
    
    789
    
    
    
    
    
    
    
    
    
    
    
    Interest on borrowings and deferred
acquisition fees (b)
    
    
    552,105
    
    
    
    87,922
    
    
    
    169,682
    
    
    
    150,814
    
    
    
    143,687Subordinated disposition fees (c)
    
    
    1,013
    
    
    
    
    
    
    
    
    
    
    
    1,013
    
    
    
    Build-to-suit and expansion commitments
(d)
    
    
    6,502
    
    
    
    6,269
    
    
    
    233
    
    
    
    
    
    
    
    Operating and other lease commitments
(e)
    
    
    55,907
    
    
    
    1,759
    
    
    
    3,528
    
    
    
    3,507
    
    
    
    47,113$
    2,101,717
    
    
    $
    128,623
    
    
    $
    245,487
    
    
    $
    390,395
    
    
    $
    1,337,212
 
 (a)
    
    Excludes $2.0 million of unamortized discount on a non-recourse loan that we purchased back
from the lender.(b)
    
    Interest on an unhedged variable rate debt obligation was calculated using the variable
interest rate and balance outstanding at March 31, 2011.(c)
    
    Payable to the advisor, subject to meeting contingencies, in connection with any liquidity
event. There can be no assurance that any liquidity event will be achieved in this time frame.(d)
    
    Represents the remaining commitment on a build-to-suit project and three expansion projects.(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 $9.0 million.      CPA®:16  Global 3/31/2011 10-Q  31




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##### Table of Contents



Merger
 ® ®
 Equity Method Investments
  Ownership Interest
    
    
    
    
    
    
    Total ThirdLessee
    
    at March 31, 2011
    
    
    Total Assets
    
    
    Party Debt
    
    
    Maturity DateThales S.A. (a)
    
    
    35
    %
    
    $
    24,743
    
    
    $
    24,631
    
    
    
    7/2011U-Haul Moving Partners, Inc. and Mercury Partners,
L.P.
    
    
    31
    %
    
    
    290,667
    
    
    
    159,079
    
    
    
    5/2014Actuant Corporation (a)
    
    
    50
    %
    
    
    17,475
    
    
    
    11,475
    
    
    
    5/2014TietoEnator Plc (a)
    
    
    40
    %
    
    
    91,524
    
    
    
    72,178
    
    
    
    7/2014The New York Times Company
    
    
    27
    %
    
    
    246,278
    
    
    
    125,000
    
    
    
    9/2014Pohjola Non-life Insurance Company (a)
    
    
    40
    %
    
    
    98,553
    
    
    
    82,677
    
    
    
    1/2015Hellweg Die Profi-Baumarkte GmbH & Co. KG (Hellweg
1) (a)
    
    
    25
    %
    
    
    189,821
    
    
    
    99,337
    
    
    
    5/2015Actebis Peacock GmbH (a)
    
    
    30
    %
    
    
    49,686
    
    
    
    30,804
    
    
    
    7/2015Frontier Spinning Mills, Inc.
    
    
    40
    %
    
    
    38,791
    
    
    
    22,903
    
    
    
    8/2016Consolidated Systems, Inc.
    
    
    40
    %
    
    
    16,702
    
    
    
    11,323
    
    
    
    11/2016Barth Europa Transporte e.K/MSR Technologies GmbH
(formerly Lindenmaier A.G.) (a)
    
    
    33
    %
    
    
    17,007
    
    
    
    11,515
    
    
    
    10/2017OBI A.G. (a)
    
    
    25
    %
    
    
    199,199
    
    
    
    164,472
    
    
    
    3/2018Police Prefecture, French Government (a)
    
    
    50
    %
    
    
    104,685
    
    
    
    87,909
    
    
    
    8/2020Schuler A.G. (a)
    
    
    33
    %
    
    
    72,176
    
    
    
    
    
    
    
    N/A$
    1,457,307
    
    
    $
    903,303
 
 (a)
    
    Dollar amounts shown are based on the applicable exchange rate of the foreign currency at
March 31, 2011. Environmental Obligations
   CPA®:16  Global 3/31/2011 10-Q  32




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##### Table of Contents



Supplemental Financial Measures
  Funds from Operations  as Adjusted
     CPA®:16  Global 3/31/2011 10-Q  33




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##### Table of Contents



Three Months Ended March 31,2011
    
    
    2010Net income attributable to CPA®:16 - Global shareholders
    
    $
    5,402
    
    
    $
    5,960Adjustments:Depreciation and amortization of real property
    
    
    15,138
    
    
    
    12,126Proportionate share of adjustments to equity in net income of
partially owned entities to arrive at FFO:Depreciation and amortization of real property
    
    
    2,368
    
    
    
    2,212Gain on sale of real estate
    
    
    1
    
    
    
    Proportionate share of adjustments for noncontrolling interests to
arrive at FFO
    
    
    (5,875
    )
    
    
    (2,790
    )Total adjustments
    
    
    11,632
    
    
    
    11,548FFO  as defined by NAREIT
    
    
    17,034
    
    
    
    17,508Adjustments:Gain on deconsolidation of subsidiary
    
    
    
    
    
    
    (7,082
    )Other depreciation, amortization and non-cash charges
    
    
    (845
    )
    
    
    548Straight-line and other rent adjustments
    
    
    (735
    )
    
    
    337Impairment charges
    
    
    
    
    
    
    8,030Proportionate share of adjustments to equity in net income of
partially owned entities to arrive at AFFO:Other depreciation, amortization and other non-cash charges
    
    
    32
    
    
    
    Straight-line and other rent adjustments
    
    
    (182
    )
    
    
    (114
    )Proportionate share of adjustments for noncontrolling interests to
arrive at AFFO
    
    
    914
    
    
    
    1,037Total adjustments
    
    
    (816
    )
    
    
    2,756AFFO (inclusive of Merger costs totaling $2.9 million in 2011) (a)
    
    $
    16,218
    
    
    $
    20,264
 
 (a)
    
    AFFO for the three months ended March 31, 2011 includes a reduction of $2.9 million as a
result of charges incurred in connection with the Merger. Management does not consider these
costs to be an ongoing expense of our business when evaluating our operating performance using
this supplemental financial measure. Adjusted Cash Flow from Operating Activities
    CPA®:16  Global 3/31/2011 10-Q  34




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##### Table of Contents



Three Months Ended March 31,2011
    
    
    2010Cash flow provided by operating activities
    
    $
    27,399
    
    
    $
    33,104Adjustments:Distributions received from equity investments in
real estate in excess of equity income, net
    
    
    768
    
    
    
    383Distributions paid to noncontrolling interests, net
    
    
    (2,225
    )
    
    
    (2,042
    )Changes in working capital
    
    
    (2,678
    )
    
    
    (1,719
    )Adjusted cash flow from operating activities
(inclusive of Merger costs totaling $2.9 million
in 2011) (a)(b)
    
    $
    23,264
    
    
    $
    29,726Distributions declared (weighted average share basis)
    
    $
    20,956
    
    
    $
    20,470
 
 (a)
    
    Adjusted cash flow from operating activities for the three months ended March 31, 2011
included a reduction of $2.9 million as a result of charges incurred in connection with the
Merger. Management does not consider these costs to be an ongoing cash outflow of our business
when evaluating our cash flow generated from our core operations using this supplemental
financial measure.(b)
    
    During the first quarter of 2011, we made an adjustment to exclude the impact of escrow funds
from Adjusted cash flow from operating activities as, more often than not, these funds
represent investing and/or financing activities. Adjusted cash flow from operating activities
for the three months ended March 31, 2010 has been adjusted to reflect this reclassification.  
 Item 3.
    
    Quantitative and Qualitative Disclosures About Market Risk
 Market Risk
   Interest Rate Risk
    CPA®:16  Global 3/31/2011 10-Q  35




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##### Table of Contents



2011
    
    
    2012
    
    
    2013
    
    
    2014
    
    
    2015
    
    
    Thereafter
    
    
    Total
    
    
    Fair valueFixed rate debt
    
    $
    19,706
    
    
    $
    27,813
    
    
    $
    30,996
    
    
    $
    97,833
    
    
    $
    124,272
    
    
    $
    1,087,344
    
    
    $
    1,387,964
    
    
    $
    1,330,309Variable rate debt
    
    $
    4,055
    
    
    $
    5,483
    
    
    $
    5,961
    
    
    $
    6,417
    
    
    $
    6,847
    
    
    $
    68,675
    
    
    $
    97,438
    
    
    $
    97,003
   Foreign Currency Exchange Rate Risk
    CPA®:16  Global 3/31/2011 10-Q  36




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##### Table of Contents



Other
  
 Item 4.
    
    Controls and Procedures
 Disclosure Controls and Procedures
   Changes in Internal Control over Financial Reporting
   CPA®:16  Global 3/31/2011 10-Q  37




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##### Table of Contents



PART II
 
 Item 2.
    
    Unregistered Sales of Equity Securities and Use of Proceeds
  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 the2011 Period
    
    shares purchased(a)
    
    
    paid per share
    
    
    plans or program(a)
    
    
    plans or program(a)January
    
    
    
    
    
    
    
    
    
    
    N/A
    
    
    
    N/AFebruary
    
    
    
    
    
    
    
    
    
    
    N/A
    
    
    
    N/AMarch
    
    
    333,005
    
    
    $
    8.18
    
    
    
    N/A
    
    
    
    N/ATotal
    
    
    333,005
 
 (a)
    
    Represents shares of our common stock purchased through our redemption plan, pursuant to
which we may elect to redeem shares at the request of our shareholders, subject to certain
exceptions, 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.

    
    Description31.1
    
    
    Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 200231.2
    
    
    Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 200232
    
    
    Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
  CPA®:16  Global 3/31/2011 10-Q  38




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##### Table of Contents



SIGNATURES
  Corporate Property Associates 16  Global IncorporatedDate: 5/16/11
    By:
    /s/ Mark J. DeCesarisMark J. DeCesarisChief Financial Officer
(Principal Financial Officer)Date: 5/16/11
    By:
    /s/ Thomas J. Ridings, Jr.Thomas J. Ridings, Jr.Chief Accounting Officer
(Principal Accounting Officer)  CPA®:16  Global 3/31/2011 10-Q  39




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##### Table of Contents



EXHIBIT INDEX
  Exhibit No.
    
    Description31.1
    
    
    Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 200231.2
    
    
    Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 200232
    
    
    Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002