##### 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, 2010
 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 PlazaNew 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 Operations
    
    
    3Consolidated Statements of Comprehensive Income
    
    
    4Consolidated Statements of Cash Flows
    
    
    5Notes to Consolidated Financial Statements
    
    
    6Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    22Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    34Item 4. Controls and Procedures
    
    
    36PART II  OTHER INFORMATION
    
    
    36Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    36Item 6. Exhibits
    
    
    37Signatures
    
    
    38Exhibit 31.1Exhibit 31.2Exhibit 32
  Forward Looking Statements
  CPA®:16  Global 9/30/2010 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 and per share amounts)
 September 30, 2010
    
    
    December 31, 2009AssetsInvestments in real estate:Real estate, at cost (inclusive of amounts attributable to consolidated variable interest entities (VIEs) of $438,587 and $454,311, respectively)
    
    $
    1,749,039
    
    
    $
    1,696,872Operating real estate, at cost (inclusive of amounts attributable to consolidated VIEs of $29,219 for both periods presented
    
    
    84,576
    
    
    
    83,718Accumulated depreciation (inclusive of amounts attributable to consolidated VIEs of $37,128 and $30,292, respectively)
    
    
    (146,607
    )
    
    
    (118,833
    )Net investments in properties
    
    
    1,687,008
    
    
    
    1,661,757Real estate under construction
    
    
    
    
    
    
    61,588Net investment in direct financing leases (inclusive of amounts attributable to consolidated VIEs of $50,587 and $52,521, respectively)
    
    
    324,398
    
    
    
    342,055Equity investments in real estate
    
    
    150,070
    
    
    
    158,149Net investments in real estate
    
    
    2,161,476
    
    
    
    2,223,549Notes receivable (inclusive of amounts attributable to consolidated VIEs of $320,425 and $337,397, respectively)
    
    
    351,793
    
    
    
    362,707Cash and cash equivalents (inclusive of amounts attributable to consolidated VIEs of $17,031 and $14,199, respectively)
    
    
    61,563
    
    
    
    83,985Intangible assets, net (inclusive of amounts attributable to consolidated VIEs of $26,939 and $29,209, respectively)
    
    
    153,110
    
    
    
    162,432Funds in escrow (inclusive of amounts attributable to consolidated VIEs of $10,056 and $12,339, respectively)
    
    
    18,333
    
    
    
    21,586Other assets, net (inclusive of amounts attributable to consolidated VIEs of $4,520 and $7,908, respectively)
    
    
    33,682
    
    
    
    34,746Total assets
    
    $
    2,779,957
    
    
    $
    2,889,005Liabilities and EquityLiabilities:Non-recourse debt (inclusive of amounts attributable to consolidated VIEs of $438,485 and $463,309, respectively)
    
    $
    1,395,075
    
    
    $
    1,445,889Accounts payable, accrued expenses and other liabilities (inclusive of amounts attributable to consolidated VIEs of $12,128 and $14,189,
respectively)
    
    
    35,391
    
    
    
    36,290Prepaid and deferred rental income and security deposits (inclusive of amounts attributable to consolidated VIEs of $11,549 and $12,476,
respectively)
    
    
    57,959
    
    
    
    58,063Due to affiliates
    
    
    7,805
    
    
    
    14,193Distributions payable
    
    
    20,681
    
    
    
    20,346Total liabilities
    
    
    1,516,911
    
    
    
    1,574,781Redeemable noncontrolling interests
    
    
    320,425
    
    
    
    337,397Commitments and contingencies (Note 10)Equity:CPA®:16  Global shareholders equity:Common stock, $0.001 par value; 250,000,000 shares authorized; 133,526,537 and 129,995,172 shares issued, respectively
    
    
    134
    
    
    
    130Additional paid-in capital
    
    
    1,206,051
    
    
    
    1,174,230Distributions in excess of accumulated earnings
    
    
    (262,753
    )
    
    
    (225,462
    )Accumulated other comprehensive (loss) income
    
    
    (7,039
    )
    
    
    5,397936,393
    
    
    
    954,295Less, treasury stock at cost, 8,640,944 and 7,134,071 shares, respectively
    
    
    (78,532
    )
    
    
    (65,636
    )Total CPA®:16  Global shareholders equity
    
    
    857,861
    
    
    
    888,659Noncontrolling interests
    
    
    84,760
    
    
    
    88,168Total equity
    
    
    942,621
    
    
    
    976,827Total liabilities and equity
    
    $
    2,779,957
    
    
    $
    2,889,005
  CPA®:16  Global 9/30/2010 10-Q 2




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##### 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 30,2010
    
    
    2009
    
    
    2010
    
    
    2009RevenuesRental income
    
    $
    38,004
    
    
    $
    38,685
    
    
    $
    114,396
    
    
    $
    111,452Interest income from direct financing leases
    
    
    6,818
    
    
    
    7,236
    
    
    
    20,021
    
    
    
    20,833Interest income on notes receivable
    
    
    6,983
    
    
    
    7,518
    
    
    
    20,858
    
    
    
    21,227Other real estate income
    
    
    6,623
    
    
    
    6,155
    
    
    
    19,131
    
    
    
    17,925Other operating income
    
    
    898
    
    
    
    522
    
    
    
    2,247
    
    
    
    2,22059,326
    
    
    
    60,116
    
    
    
    176,653
    
    
    
    173,657Operating ExpensesDepreciation and amortization
    
    
    (11,985
    )
    
    
    (12,272
    )
    
    
    (36,160
    )
    
    
    (34,949
    )Property expenses
    
    
    (6,438
    )
    
    
    (8,367
    )
    
    
    (22,133
    )
    
    
    (25,126
    )Other real estate expenses
    
    
    (4,991
    )
    
    
    (4,587
    )
    
    
    (14,148
    )
    
    
    (13,624
    )General and administrative
    
    
    (1,819
    )
    
    
    (2,002
    )
    
    
    (6,051
    )
    
    
    (6,635
    )Impairment charges
    
    
    (1,767
    )
    
    
    (16,614
    )
    
    
    (9,797
    )
    
    
    (32,598
    )(27,000
    )
    
    
    (43,842
    )
    
    
    (88,289
    )
    
    
    (112,932
    )Other Income and ExpensesIncome from equity investments in real estate
    
    
    3,798
    
    
    
    3,483
    
    
    
    13,083
    
    
    
    11,876Other interest income
    
    
    21
    
    
    
    38
    
    
    
    151
    
    
    
    208Gain on extinguishment of debt
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,512Other income and (expenses)
    
    
    (82
    )
    
    
    (677
    )
    
    
    (607
    )
    
    
    305Interest expense
    
    
    (19,114
    )
    
    
    (20,646
    )
    
    
    (58,664
    )
    
    
    (59,713
    )(15,377
    )
    
    
    (17,802
    )
    
    
    (46,037
    )
    
    
    (40,812
    )Income (loss) before income taxes
    
    
    16,949
    
    
    
    (1,528
    )
    
    
    42,327
    
    
    
    19,913Provision for income taxes
    
    
    (1,177
    )
    
    
    (3,438
    )
    
    
    (3,138
    )
    
    
    (4,775
    )Income (loss) from continuing operations
    
    
    15,772
    
    
    
    (4,966
    )
    
    
    39,189
    
    
    
    15,138Discontinued OperationsIncome (loss) from operations of discontinued properties
    
    
    1
    
    
    
    (204
    )
    
    
    98
    
    
    
    (311
    )Gain on deconsolidation of a subsidiary
    
    
    
    
    
    
    
    
    
    
    7,082
    
    
    
    Gain on sale of real estate
    
    
    
    
    
    
    7,634
    
    
    
    
    
    
    
    7,634Gain on extinguishment of debt
    
    
    
    
    
    
    2,313
    
    
    
    
    
    
    
    2,313Impairment charges
    
    
    
    
    
    
    (7,511
    )
    
    
    
    
    
    
    (12,612
    )Income (loss) from discontinued operations
    
    
    1
    
    
    
    2,232
    
    
    
    7,180
    
    
    
    (2,976
    )Net Income (loss)
    
    
    15,773
    
    
    
    (2,734
    )
    
    
    46,369
    
    
    
    12,162Less: Net (income) loss attributable to noncontrolling interests
    
    
    (656
    )
    
    
    9,100
    
    
    
    (4,548
    )
    
    
    3,673Less: Net income attributable to redeemable noncontrolling
interests
    
    
    (4,208
    )
    
    
    (4,530
    )
    
    
    (17,445
    )
    
    
    (16,295
    )Net Income (Loss) Attributable to CPA®:16  Global
Shareholders
    
    $
    10,909
    
    
    $
    1,836
    
    
    $
    24,376
    
    
    $
    (460
    )Earnings Per ShareIncome (loss) from continuing operations attributable to
CPA®:16  Global shareholders
    
    $
    0.09
    
    
    $
    (0.03
    )
    
    $
    0.17
    
    
    $
    (0.01
    )Income from discontinued operations attributable to
CPA®:16  Global shareholders
    
    
    
    
    
    
    0.05
    
    
    
    0.03
    
    
    
    0.01Net income attributable to CPA®:16  Global
shareholders
    
    $
    0.09
    
    
    $
    0.02
    
    
    $
    0.20
    
    
    $
    Weighted Average Shares Outstanding
    
    
    124,948,799
    
    
    
    122,907,481
    
    
    
    124,261,348
    
    
    
    122,791,365Amounts Attributable to CPA®:16  Global ShareholdersIncome (loss) from continuing operations, net of tax
    
    $
    10,908
    
    
    $
    (4,330
    )
    
    $
    20,789
    
    
    $
    (1,782
    )Income from discontinued operations, net of tax
    
    
    1
    
    
    
    6,166
    
    
    
    3,587
    
    
    
    1,322Net income (loss)
    
    $
    10,909
    
    
    $
    1,836
    
    
    $
    24,376
    
    
    $
    (460
    )Distributions Declared Per Share
    
    $
    0.1656
    
    
    $
    0.1656
    
    
    $
    0.4968
    
    
    $
    0.4965
  CPA®:16  Global 9/30/2010 10-Q 3




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##### Table of Contents



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

(UNAUDITED)
 (in thousands)
 Three months ended September 30,
    
    
    Nine months ended September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Net Income (Loss)
    
    $
    15,773
    
    
    $
    (2,734
    )
    
    $
    46,369
    
    
    $
    12,162Other Comprehensive Income (Loss):Foreign currency translation adjustments
    
    
    59,246
    
    
    
    23,439
    
    
    
    (26,736
    )
    
    
    22,329Change in unrealized loss on derivative instruments
    
    
    (962
    )
    
    
    (907
    )
    
    
    (2,798
    )
    
    
    (1,264
    )Change in unrealized gain (loss) on marketable securities
    
    
    17
    
    
    
    5
    
    
    
    41
    
    
    
    (23
    )58,301
    
    
    
    22,537
    
    
    
    (29,493
    )
    
    
    21,042Comprehensive income
    
    
    74,074
    
    
    
    19,803
    
    
    
    16,876
    
    
    
    33,204Amounts Attributable to Noncontrolling Interests:Net (income) loss
    
    
    (656
    )
    
    
    9,100
    
    
    
    (4,548
    )
    
    
    3,673Foreign currency translation adjustments
    
    
    (7,090
    )
    
    
    (3,301
    )
    
    
    72
    
    
    
    (3,631
    )Change in unrealized gain (loss) on derivative instruments
    
    
    
    
    
    
    1
    
    
    
    13
    
    
    
    (27
    )Comprehensive (income) loss attributable to noncontrolling interests
    
    
    (7,746
    )
    
    
    5,800
    
    
    
    (4,463
    )
    
    
    15Amounts Attributable to Redeemable Noncontrolling Interests:Net income
    
    
    (4,208
    )
    
    
    (4,530
    )
    
    
    (17,445
    )
    
    
    (16,295
    )Foreign currency translation adjustments
    
    
    (33,050
    )
    
    
    (12,805
    )
    
    
    16,972
    
    
    
    (11,652
    )Comprehensive income attributable to redeemable noncontrolling
interests
    
    
    (37,258
    )
    
    
    (17,335
    )
    
    
    (473
    )
    
    
    (27,947
    )Comprehensive
Income Attributable to CPA®:16  Global
Shareholders
    
    $
    29,070
    
    
    $
    8,268
    
    
    $
    11,940
    
    
    $
    5,272
  CPA®:16  Global 9/30/2010 10-Q 4




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##### Table of Contents



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

(UNAUDITED)
 (in thousands)
 Nine months ended September 30,2010
    
    
    2009Cash Flows  Operating ActivitiesNet income
    
    $
    46,369
    
    
    $
    12,162Adjustments to net income:Depreciation and amortization including intangible assets and deferred financing
costs
    
    
    36,823
    
    
    
    36,598Straight-line rent adjustments and amortization of rent-related intangibles
    
    
    (1,611
    )
    
    
    1,919(Income) loss from equity investments in real estate in excess of distributions
received
    
    
    (1,667
    )
    
    
    626Issuance of shares to affiliate in satisfaction of fees due
    
    
    8,840
    
    
    
    8,893Realized gain on foreign currency transactions and other, net
    
    
    78
    
    
    
    755Unrealized loss (gain) on foreign currency and derivative transactions, net
    
    
    529
    
    
    
    (1,033
    )Gain on sale of real estate
    
    
    
    
    
    
    (7,634
    )Gain on deconsolidation of a subsidiary (a)
    
    
    (7,082
    )
    
    
    Gain on extinguishment of debt
    
    
    
    
    
    
    (8,825
    )Impairment charges
    
    
    9,797
    
    
    
    45,210Change in other operating assets and liabilities, net
    
    
    (1,067
    )
    
    
    (1,023
    )Net cash provided by operating activities
    
    
    91,009
    
    
    
    87,648Cash Flows  Investing ActivitiesDistributions received from equity investments in real estate in excess of equity income
    
    
    3,761
    
    
    
    47,390Contributions to equity investments in real estate
    
    
    
    
    
    
    (62,448
    )Acquisitions of real estate and other capital expenditures
    
    
    (21,810
    )
    
    
    (131,275
    )Funding/purchases of notes receivable
    
    
    (5,567
    )
    
    
    (5,142
    )Release of funds held in escrow for acquisition and construction of real estate
    
    
    1,553
    
    
    
    13,906Funds placed in escrow for acquisitions and construction of real estate
    
    
    (455
    )
    
    
    Proceeds from sale of real estate
    
    
    1
    
    
    
    27,710Payment of deferred acquisition fees to affiliate
    
    
    (6,261
    )
    
    
    (9,082
    )Net cash used in investing activities
    
    
    (28,778
    )
    
    
    (118,941
    )Cash Flows  Financing ActivitiesDistributions paid
    
    
    (61,332
    )
    
    
    (60,541
    )Distributions paid to noncontrolling interests
    
    
    (29,820
    )
    
    
    (34,462
    )Contributions from noncontrolling interests
    
    
    2,644
    
    
    
    24,379Proceeds from mortgages and notes payable
    
    
    36,947
    
    
    
    78,516Scheduled payments of mortgage principal
    
    
    (15,693
    )
    
    
    (13,704
    )Prepayment of mortgages and note payable
    
    
    (29,000
    )
    
    
    (34,550
    )Deferred financing costs and mortgage deposits
    
    
    (8
    )
    
    
    (232
    )Proceeds from issuance of shares, net of costs of raising capital
    
    
    22,985
    
    
    
    24,440Purchase of treasury stock
    
    
    (12,896
    )
    
    
    (30,729
    )Net cash used in financing activities
    
    
    (86,173
    )
    
    
    (46,883
    )Change in Cash and Cash Equivalents During the PeriodEffect of exchange rate changes on cash
    
    
    1,520
    
    
    
    (136
    )Net decrease in cash and cash equivalents
    
    
    (22,422
    )
    
    
    (78,312
    )Cash and cash equivalents, beginning of period
    
    
    83,985
    
    
    
    174,209Cash and cash equivalents, end of period
    
    $
    61,563
    
    
    $
    95,897
 
 (a)
    
    See Note 12 for a description of the non-cash activity related to the deconsolidation.  CPA®:16  Global 9/30/2010 10-Q 5




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##### 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
   CPA®:16  Global 9/30/2010 10-Q 6




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##### Table of Contents



Notes to Consolidated Financial Statements
    Acquisition Costs
  Information about International Geographic Areas
  Note 3. Agreements and Transactions with Related Parties
  Asset Management and Performance Fees
  CPA®:16  Global 9/30/2010 10-Q 7




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##### Table of Contents



Notes to Consolidated Financial Statements
 Transaction Fees
   Other Expenses
  Joint Ventures and Other Transactions with Affiliates
   CPA®:16  Global 9/30/2010 10-Q 8




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##### Table of Contents



Notes to Consolidated Financial Statements
 Note 4. Net Investments in Properties
 Real Estate
  September 30, 2010
    
    
    December 31, 2009Land
    
    $
    342,672
    
    
    $
    345,347Buildings
    
    
    1,406,367
    
    
    
    1,351,525Less: Accumulated depreciation
    
    
    (137,783
    )
    
    
    (112,385
    )$
    1,611,256
    
    
    $
    1,584,487
  Operating Real Estate
  September 30, 2010
    
    
    December 31, 2009Land
    
    $
    8,296
    
    
    $
    8,296Buildings
    
    
    76,280
    
    
    
    75,422Less: Accumulated depreciation
    
    
    (8,824
    )
    
    
    (6,448
    )$
    75,752
    
    
    $
    77,270
 Other
  Note 5. Equity Investments in Real Estate
  CPA®:16  Global 9/30/2010 10-Q 9




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##### Table of Contents



Notes to Consolidated Financial Statements
  Ownership Interest at
    
    
    Carrying Value atLessee
    
    September 30, 2010
    
    
    September 30, 2010
    
    
    December 31, 2009The New York Times Company
    
    
    27
    %
    
    $
    33,432
    
    
    $
    33,195U-Haul Moving Partners, Inc. and Mercury Partners, LP
    
    
    31
    %
    
    
    33,055
    
    
    
    33,834Schuler A.G. (a) (b)
    
    
    33
    %
    
    
    23,178
    
    
    
    23,469Hellweg Die Profi-Baumarkte GmbH & Co. KG (Hellweg 1) (a)
    
    
    25
    %
    
    
    18,651
    
    
    
    18,934TietoEnator Plc (a) (c)
    
    
    40
    %
    
    
    7,302
    
    
    
    8,488Police Prefecture, French Government (a) (c)
    
    
    50
    %
    
    
    7,129
    
    
    
    8,268Frontier Spinning Mills, Inc.
    
    
    40
    %
    
    
    6,247
    
    
    
    6,077Pohjola Non-life Insurance Company (a) (c)
    
    
    40
    %
    
    
    5,688
    
    
    
    6,632Actebis Peacock GmbH (a)
    
    
    30
    %
    
    
    5,334
    
    
    
    5,644OBI A.G. (a) (d)
    
    
    25
    %
    
    
    4,080
    
    
    
    6,794Actuant Corporation (a)
    
    
    50
    %
    
    
    2,644
    
    
    
    2,758Consolidated Systems, Inc. (b)
    
    
    40
    %
    
    
    2,104
    
    
    
    2,131Barth Europa Transporte e.K/MSR Technologies GmbH (formerly
Lindenmaier A.G.) (a)
    
    
    33
    %
    
    
    1,226
    
    
    
    1,569Thales S.A. (a)
    
    
    35
    %
    
    
    
    
    
    
    356$
    150,070
    
    
    $
    158,149
 
 (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 decrease in carrying value was primarily due to cash distributions made to us by the
venture.(d)
    
    The carrying value of this investment included our share of the net loss on interest rate
swap derivative instruments recognized by the venture.  CPA®:16  Global 9/30/2010 10-Q 10




---



##### Table of Contents



Notes to Consolidated Financial Statements
  September 30, 2010
    
    
    December 31, 2009Assets
    
    $
    1,438,623
    
    
    $
    1,504,375Liabilities
    
    
    (961,924
    )
    
    
    (1,003,311
    )Partners/members equity
    
    $
    476,699
    
    
    $
    501,064
 Three months ended September 30,
    
    
    Nine months ended September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Revenues
    
    $
    34,955
    
    
    $
    34,397
    
    
    $
    105,453
    
    
    $
    103,171Expenses
    
    
    (20,439
    )
    
    
    (21,410
    )
    
    
    (61,793
    )
    
    
    (63,633
    )Impairment Charges (a)
    
    
    (3,381
    )
    
    
    (12,095
    )
    
    
    (3,381
    )
    
    
    (12,095
    )Gain on sale of real estate (b)
    
    
    
    
    
    
    11,084
    
    
    
    
    
    
    
    11,084Net income
    
    $
    11,135
    
    
    $
    11,976
    
    
    $
    40,279
    
    
    $
    38,527
 
 (a)
    
    For the three and nine months ended September 30, 2010, reflects impairment charges incurred
by a venture that leases property to Thales S.A. to reduce the carrying value of the property
to its estimated fair value. For the three and nine months ended September 30, 2009, reflects
impairment charges incurred by a venture that formerly leased properties to Lindenmaier A.G.
as a result of the tenants bankruptcy filing. 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, 2010 and 2009, respectively.(b)
    
    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.  Equity Investment in Direct Financing Lease Acquired
 ®
 Note 6. Fair Value Measurements
  CPA®:16  Global 9/30/2010 10-Q 11




---



##### Table of Contents



Notes to Consolidated Financial Statements
 Items Measured at Fair Value on a Recurring Basis
  Fair Value Measurements at September 30, 2010 Using:Quoted Prices inActive Markets for
    
    
    Significant Other
    
    
    UnobservableIdentical Assets
    
    
    Observable Inputs
    
    
    InputsDescription
    
    Total
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Assets:Money market funds
    
    $
    3,768
    
    
    $
    3,768
    
    
    $
    
    
    
    $
    Other securities
    
    
    1,648
    
    
    
    
    
    
    
    
    
    
    
    1,648Derivative assets
    
    
    1,418
    
    
    
    
    
    
    
    
    
    
    
    1,418$
    6,834
    
    
    $
    3,768
    
    
    $
    
    
    
    $
    3,066Liabilities:Derivative liabilities
    
    $
    (929
    )
    
    $
    
    
    
    $
    (929
    )
    
    $
    
 Fair Value Measurements at December 31, 2009 Using:Quoted Prices inActive Markets for
    
    
    Significant Other
    
    
    UnobservableIdentical Assets
    
    
    Observable Inputs
    
    
    InputsDescription
    
    Total
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Assets:Money market funds
    
    $
    49,261
    
    
    $
    49,261
    
    
    $
    
    
    
    $
    Other securities
    
    
    1,851
    
    
    
    
    
    
    
    
    
    
    
    1,851Derivative assets
    
    
    2,228
    
    
    
    
    
    
    
    50
    
    
    
    2,178$
    53,340
    
    
    $
    49,261
    
    
    $
    50
    
    
    $
    4,029Liabilities:Derivative liabilities
    
    $
    (380
    )
    
    $
    
    
    
    $
    (380
    )
    
    $
    
  Fair Value Measurements Using Significant Unobservable Inputs (Level 3 Only)Three months ended September 30,  2010
    
    
    Three months ended September 30,  2009Other
    
    
    Derivative
    
    
    Total
    
    
    Other
    
    
    Derivative
    
    
    TotalSecurities
    
    
    Assets
    
    
    Assets
    
    
    Securities
    
    
    Assets
    
    
    AssetsBeginning balance
    
    $
    1,714
    
    
    $
    2,617
    
    
    $
    4,331
    
    
    $
    2,008
    
    
    $
    4,373
    
    
    $
    6,381Total gains or losses (realized and unrealized):Included in earnings
    
    
    
    
    
    
    (1,329
    )
    
    
    (1,329
    )
    
    
    
    
    
    
    (1,103
    )
    
    
    (1,103
    )Included in other comprehensive income (loss)
    
    
    17
    
    
    
    130
    
    
    
    147
    
    
    
    6
    
    
    
    10
    
    
    
    16Amortization and accretion
    
    
    (83
    )
    
    
    
    
    
    
    (83
    )
    
    
    (79
    )
    
    
    
    
    
    
    (79
    )Ending balance
    
    $
    1,648
    
    
    $
    1,418
    
    
    $
    3,066
    
    
    $
    1,935
    
    
    $
    3,280
    
    
    $
    5,215The 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
    
    $
    
    
    
    $
    (1,329
    )
    
    $
    (1,329
    )
    
    $
    
    
    
    $
    (1,103
    )
    
    $
    (1,103
    )
 CPA®:16  Global 9/30/2010 10-Q 12




---



##### Table of Contents



Notes to Consolidated Financial Statements
 Fair Value Measurements Using Significant Unobservable Inputs (Level 3 Only)Nine months ended September 30,  2010
    
    
    Nine months ended September 30,  2009Other
    
    
    Derivative
    
    
    Total
    
    
    Other
    
    
    Derivative
    
    
    TotalSecurities
    
    
    Assets
    
    
    Assets
    
    
    Securities
    
    
    Assets
    
    
    AssetsBeginning balance
    
    $
    1,851
    
    
    $
    2,178
    
    
    $
    4,029
    
    
    $
    2,192
    
    
    $
    2,973
    
    
    $
    5,165Total gains or losses (realized and unrealized):Included in earnings
    
    
    
    
    
    
    (688
    )
    
    
    (688
    )
    
    
    
    
    
    
    247
    
    
    
    247Included in other comprehensive income
    
    
    41
    
    
    
    (72
    )
    
    
    (31
    )
    
    
    (23
    )
    
    
    60
    
    
    
    37Amortization and accretion
    
    
    (244
    )
    
    
    
    
    
    
    (244
    )
    
    
    (234
    )
    
    
    
    
    
    
    (234
    )Ending balance
    
    $
    1,648
    
    
    $
    1,418
    
    
    $
    3,066
    
    
    $
    1,935
    
    
    $
    3,280
    
    
    $
    5,215The 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
    
    $
    
    
    
    $
    (688
    )
    
    $
    (688
    )
    
    $
    
    
    
    $
    247
    
    
    $
    247
   September 30, 2010
    
    
    December 31, 2009Carrying Value
    
    
    Fair Value
    
    
    Carrying Value
    
    
    Fair ValueNon-recourse debt
    
    $
    1,395,075
    
    
    $
    1,331,464
    
    
    $
    1,445,889
    
    
    $
    1,286,300Notes receivable
    
    
    351,793
    
    
    
    351,877
    
    
    
    362,707
    
    
    
    363,389
  Items Measured at Fair Value on a Non-Recurring Basis
  CPA®:16  Global 9/30/2010 10-Q 13




---



##### Table of Contents



Notes to Consolidated Financial Statements
  Three months ended September 30,  2010
    
    
    Three months ended September 30,  2009Total Fair Value
    
    
    Total Impairment
    
    
    Total Fair Value
    
    
    Total ImpairmentMeasurements
    
    
    Charges
    
    
    Measurements
    
    
    ChargesImpairment Charges From Continuing Operations:Net investments in properties
    
    $
    
    
    
    $
    
    
    
    $
    12,278
    
    
    $
    12,515Net investments in direct financing leases
    
    
    117,971
    
    
    
    1,767
    
    
    
    
    
    
    
    Equity investments in real estate
    
    
    1,226
    
    
    
    1,046
    
    
    
    2,908
    
    
    
    1,284Intangible assets
    
    
    949
    
    
    
    
    
    
    
    3,027
    
    
    
    4,099$
    120,146
    
    
    $
    2,813
    
    
    $
    18,213
    
    
    $
    17,898Impairment Charges From Discontinued Operations:Net investments in properties
    
    $
    
    
    
    $
    
    
    
    $
    13,257
    
    
    $
    6,638Intangible assets
    
    
    
    
    
    
    
    
    
    
    1,743
    
    
    
    873$
    
    
    
    $
    
    
    
    $
    15,000
    
    
    $
    7,511
 Nine months ended September 30,  2010
    
    
    Nine months ended September 30,  2009Total Fair Value
    
    
    Total Impairment
    
    
    Total Fair Value
    
    
    Total ImpairmentMeasurements
    
    
    Charges
    
    
    Measurements
    
    
    ChargesImpairment Charges From Continuing Operations:Assets:Net investments in properties
    
    $
    17,295
    
    
    $
    2,835
    
    
    $
    24,737
    
    
    $
    27,467Net investments in direct financing leases
    
    
    117,971
    
    
    
    6,962
    
    
    
    
    
    
    
    Equity investments in real estate
    
    
    1,226
    
    
    
    1,046
    
    
    
    4,078
    
    
    
    297Intangible assets
    
    
    949
    
    
    
    
    
    
    
    3,918
    
    
    
    5,168$
    137,441
    
    
    $
    10,843
    
    
    $
    32,733
    
    
    $
    32,932Liabilities:
    
    $
    
    
    
    $
    
    
    
    $
    (31
    )
    
    $
    (37
    )Intangible liabilities
    
    $
    
    
    
    $
    
    
    
    $
    (31
    )
    
    $
    (37
    )Impairment Charges From Discontinued Operations:Net investments in properties
    
    $
    
    
    
    $
    
    
    
    $
    14,633
    
    
    $
    11,236Intangible assets
    
    
    
    
    
    
    
    
    
    
    1,893
    
    
    
    1,376$
    
    
    
    $
    
    
    
    $
    16,526
    
    
    $
    12,612
 Note 7. Risk Management and Use of Derivative Financial Instruments
 Risk Management
  CPA®:16  Global 9/30/2010 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, 2010
    
    
    December 31, 2009
    
    
    September 30, 2010
    
    
    December 31, 2009Derivatives Designated as Hedging
InstrumentsForeign currency collar contracts
    
    Other liabilities
    
    $
    
    
    
    $
    
    
    
    $
    (357
    )
    
    $
    Foreign currency forward contracts
    
    Other liabilities
    
    
    
    
    
    
    
    
    
    
    (12
    )
    
    
    (143
    )Interest rate swaps
    
    Other liabilities
    
    
    
    
    
    
    
    
    
    
    (560
    )
    
    
    (237
    )
    
    
    
    
    
    
    
    (929
    )
    
    
    (380
    )Derivatives not Designated as Hedging
InstrumentsEmbedded credit derivatives
    
    Other assets
    
    $
    203
    
    
    $
    963
    
    
    $
    
    
    
    $
    Stock warrants
    
    Other assets
    
    
    1,215
    
    
    
    1,215
    
    
    
    
    
    
    
    Interest rate caps
    
    Other assets
    
    
    
    
    
    
    50
    
    
    
    
    
    
    
    1,418
    
    
    
    2,228
    
    
    
    
    
    
    
    Total derivatives
    
    
    
    
    
    $
    1,418
    
    
    $
    2,228
    
    
    $
    (929
    )
    
    $
    (380
    )
  Amount of Gain (Loss)
    
    
    Amount of Gain (Loss)Recognized in OCI on Derivatives
    
    
    Reclassified from OCI into Income(Effective Portion)
    
    
    (Effective Portion)Three months ended September 30,
    
    
    Three months ended September 30,Derivatives in Cash Flow Hedging Relationships
    
    2010
    
    
    2009
    
    
    2010
    
    
    2009Interest rate swaps (a)
    
    $
    (105
    )
    
    $
    (71
    )
    
    $
    
    
    
    $
    Foreign currency forward contracts (a) (b)
    
    
    (92
    )
    
    
    (87
    )
    
    
    (24
    )
    
    
    Foreign currency collar contracts(a) (b)
    
    
    (537
    )
    
    
    
    
    
    
    
    
    
    
    Total
    
    $
    (734
    )
    
    $
    (158
    )
    
    $
    (24
    )
    
    $
    
 CPA®:16  Global 9/30/2010 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
    
    Nine months ended September 30,
    
    
    Nine months ended September 30,Relationships
    
    2010
    
    
    2009
    
    
    2010
    
    
    2009Interest rate swaps (a)
    
    $
    (323
    )
    
    $
    190
    
    
    $
    
    
    
    $
    Foreign currency forward contracts (a) (b)
    
    
    184
    
    
    
    (229
    )
    
    
    (53
    )
    
    
    27Foreign currency collars (a) (b)
    
    
    (357
    )
    
    
    
    
    
    
    
    
    
    
    Total
    
    $
    (496
    )
    
    $
    (39
    )
    
    $
    (53
    )
    
    $
    27
 
 (a)
    
    During the three and nine months ended September 30, 2010 and 2009, 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)
    
    (Losses) gains 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 September 30,
    
    
    Nine months ended September 30,Hedging Relationships
    
    Recognized in Income
    
    2010
    
    
    2009
    
    
    2010
    
    
    2009Embedded credit
derivatives (a)
    
    Other income and (expenses)
    
    $
    (1,410
    )
    
    $
    (1,292
    )
    
    $
    (688
    )
    
    $
    (199
    )Stock warrants
    
    Other income and (expenses)
    
    
    81
    
    
    
    189
    
    
    
    
    
    
    
    446Total
    
    
    
    
    
    $
    (1,329
    )
    
    $
    (1,103
    )
    
    $
    (688
    )
    
    $
    247
 
 (a)
    
    Includes losses attributable to noncontrolling interests totaling $1.0 million for both the
three months ended September 30, 2010 and 2009, and losses of $0.5 million and $0.1 million
for the nine months ended September 30, 2010 and 2009, respectively.   Interest Rate Swaps and Caps
   EffectiveNotional
    
    
    
    
    
    
    
    
    
    
    Interest
    
    
    Effective
    
    
    Expiration
    
    
    Fair Value atType
    
    Amount
    
    
    Cap Rate
    
    
    Spread
    
    
    Rate
    
    
    Date
    
    
    Date
    
    
    September 30, 20101-Month LIBOR
    
    Pay-fixed swap
    
    $
    3,826
    
    
    
    N/A
    
    
    
    N/A
    
    
    
    6.7
    %
    
    
    2/2008
    
    
    
    2/2018
    
    
    $
    (560
    )
 CPA®:16  Global 9/30/2010 10-Q 16




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##### Table of Contents



Notes to Consolidated Financial Statements
  Ownership
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    EffectiveInterest at
    
    
    
    
    
    
    Notional
    
    
    
    
    
    
    
    
    
    
    Interest
    
    
    Effective
    
    
    Expiration
    
    
    Fair Value atSeptember 30, 2010
    
    
    Type
    
    Amount
    
    
    Cap Rate
    
    
    Spread
    
    
    Rate
    
    
    Date
    
    
    Date
    
    
    September 30, 20103-Month LIBOR
    
    
    25.0
    %
    
    Pay-fixed swap
    
    $
    160,339
    
    
    
    N/A
    
    
    
    N/A
    
    
    
    5.0%-5.6
    %
    
    
    7/2006-4/2008
    
    
    
    10/2015-7/1/2016
    
    
    $
    (14,388
    )3-Month LIBOR
    
    
    27.3
    %
    
    Interest rate cap
    
    
    117,317
    
    
    
    4.0
    %
    
    
    4.8
    %
    
    
    N/A
    
    
    
    8/2009
    
    
    
    8/2014
    
    
    
    386$
    (14,002
    )
 Foreign Currency Contracts
     Embedded Credit Derivatives
  Stock Warrants
  Other
   CPA®:16  Global 9/30/2010 10-Q 17




---



##### Table of Contents



Notes to Consolidated Financial Statements
 Portfolio Concentration Risk
   Note 8. Noncontrolling Interests
   CPA®:16  Global
    
    
    NoncontrollingTotal
    
    
    Shareholders
    
    
    InterestsBalance at January 1, 2010
    
    $
    976,827
    
    
    $
    888,659
    
    
    $
    88,168Shares issued
    
    
    31,825
    
    
    
    31,825
    
    
    
    Contributions
    
    
    2,644
    
    
    
    
    
    
    
    2,644Net income
    
    
    28,924
    
    
    
    24,376
    
    
    
    4,548Distributions
    
    
    (72,182
    )
    
    
    (61,667
    )
    
    
    (10,515
    )Change in other comprehensive
income (loss)
    
    
    (12,521
    )
    
    
    (12,436
    )
    
    
    (85
    )Shares repurchased
    
    
    (12,896
    )
    
    
    (12,896
    )
    
    
    Balance at September 30, 2010
    
    $
    942,621
    
    
    $
    857,861
    
    
    $
    84,760
 CPA®:16  Global
    
    
    NoncontrollingTotal
    
    
    Shareholders
    
    
    InterestsBalance 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
 CPA®:16  Global 9/30/2010 10-Q 18




---



##### Table of Contents



Notes to Consolidated Financial Statements
 Redeemable Noncontrolling Interests
  2010
    
    
    2009Balance at January 1,
    
    $
    337,397
    
    
    $
    331,841Foreign currency translation adjustment
    
    
    (16,972
    )
    
    
    11,652Balance at September 30,
    
    $
    320,425
    
    
    $
    343,493
 Note 9. Impairment Charges
   Three months ended September 30,
    
    
    Nine months ended September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Net investments in properties
    
    $
    
    
    
    $
    16,614
    
    
    $
    2,835
    
    
    $
    32,598Net investment in direct financing leases
    
    
    1,767
    
    
    
    
    
    
    
    6,962
    
    
    
    Total impairment charges included in expenses
    
    
    1,767
    
    
    
    16,614
    
    
    
    9,797
    
    
    
    32,598Equity investments in real estate (a)
    
    
    1,046
    
    
    
    1,284
    
    
    
    1,046
    
    
    
    297Total impairment charges included in income from
continuing operations
    
    
    2,813
    
    
    
    17,898
    
    
    
    10,843
    
    
    
    32,895Impairment charges included in discontinued operations
    
    
    
    
    
    
    7,511
    
    
    
    
    
    
    
    12,612Total impairment charges
    
    $
    2,813
    
    
    $
    25,409
    
    
    $
    10,843
    
    
    $
    45,507
 
 (a)
    
    Impairment charges on our equity investments in real estate are included in Income from
equity investments in real estate within the consolidated financial statements.    CPA®:16  Global 9/30/2010 10-Q 19




---



##### Table of Contents



Notes to Consolidated Financial Statements
  Görtz & Schiele GmbH & Co. and Goertz & Schiele Corp.
  Foss Manufacturing Company, LLC
  John McGavigan Limited
  MetalsAmerica, Inc.
  Lindenmaier A.G.
  Other
   Note 10. Commitments and Contingencies
  Note 11. Income Taxes
   CPA®:16  Global 9/30/2010 10-Q 20




---



##### Table of Contents



Notes to Consolidated Financial Statements
    Note 12. Discontinued Operations
     Three months ended September 30,
    
    
    Nine months ended September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Revenues
    
    $
    
    
    
    $
    919
    
    
    $
    348
    
    
    $
    4,303Expenses
    
    
    1
    
    
    
    (1,123
    )
    
    
    (250
    )
    
    
    (4,614
    )Gain on deconsolidation of a subsidiary
    
    
    
    
    
    
    
    
    
    
    7,082
    
    
    
    Gain on sale of assets
    
    
    
    
    
    
    7,634
    
    
    
    
    
    
    
    7,634Gain on extinguishment of debt
    
    
    
    
    
    
    2,313
    
    
    
    
    
    
    
    2,313Impairment charges
    
    
    
    
    
    
    (7,511
    )
    
    
    
    
    
    
    (12,612
    )(Loss) Income from discontinued
operations
    
    $
    1
    
    
    $
    2,232
    
    
    $
    7,180
    
    
    $
    (2,976
    )
 CPA®:16  Global 9/30/2010 10-Q 21




---



##### 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 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Total revenues
    
    $
    59,326
    
    
    $
    60,116
    
    
    $
    176,653
    
    
    $
    173,657Net income (loss) attributable to
CPA®:16  Global shareholders
    
    
    10,909
    
    
    
    1,836
    
    
    
    24,376
    
    
    
    (460
    )Cash flow from operating activities
    
    
    
    
    
    
    
    
    
    
    91,009
    
    
    
    87,648Distributions paid
    
    
    20,550
    
    
    
    20,232
    
    
    
    61,332
    
    
    
    60,541Supplemental financial measures:Funds from operations  as adjusted (AFFO)
    
    $
    18,501
    
    
    $
    15,884
    
    
    $
    57,965
    
    
    $
    56,075Adjusted cash flow from operating activities
    
    
    
    
    
    
    
    
    
    
    83,990
    
    
    
    81,951
  ®
     CPA®:16  Global 9/30/2010 10-Q 22




---



##### Table of Contents



Changes in Management
 ® ®
 Current Trends
 General Economic Environment
  Tenant Defaults
  .
  Foreign Exchange Rates
  Capital Markets
  CPA®:16  Global 9/30/2010 10-Q 23




---



##### Table of Contents



Financing Conditions
  Real Estate Sector
  Net Asset Values
   Inflation
  Lease Expirations and Occupancy
   Proposed Accounting Changes
  CPA®:16  Global 9/30/2010 10-Q 24




---



##### Table of Contents



Results of Operations
  Nine months ended September 30,2010
    
    
    2009Rental income
    
    $
    114,396
    
    
    $
    111,452Interest income from direct financing leases
    
    
    20,021
    
    
    
    20,833$
    134,417
    
    
    $
    132,285
  Nine months ended September 30,Lessee
    
    2010
    
    
    2009Hellweg Die Profi-Baumarkte GmbH & Co. KG (Hellweg 2) (a) (b)
    
    
    25,569
    
    
    
    26,362Telcordia Technologies, Inc.
    
    
    7,273
    
    
    
    7,002Tesco plc (a) (b) (c)
    
    
    5,443
    
    
    
    1,479Nordic Cold Storage LLC
    
    
    5,174
    
    
    
    5,080Berry Plastics Corporation (b)
    
    
    5,128
    
    
    
    4,981Fraikin SAS (a) (d)
    
    
    3,984
    
    
    
    4,379The Talaria Company (Hinckley) (b)
    
    
    3,883
    
    
    
    3,896MetoKote Corp., MetoKote Canada Limited and MetoKote de Mexico(a) (e)
    
    
    3,622
    
    
    
    3,502International Aluminum Corp. and United States Aluminum of Canada Ltd. (a)
    
    
    3,405
    
    
    
    3,376LFD Manufacturing Ltd., IDS Logistics (Thailand) Ltd. and IDS Manufacturing SDN BHD (a)
    
    
    3,190
    
    
    
    2,862Huntsman International, LLC
    
    
    3,011
    
    
    
    3,011Best Brands Corp.
    
    
    3,006
    
    
    
    2,982Ply Gem Industries, Inc. (a)
    
    
    2,933
    
    
    
    2,890Bobs Discount Furniture, LLC
    
    
    2,722
    
    
    
    2,658TRW Vehicle Safety Systems Inc. (e)
    
    
    2,676
    
    
    
    2,676Kings Super Markets Inc.
    
    
    2,633
    
    
    
    2,562Universal Technical Institute of California, Inc.
    
    
    2,601
    
    
    
    2,564Finisar Corporation
    
    
    2,466
    
    
    
    2,466Performance Fibers GmbH(a)
    
    
    2,388
    
    
    
    2,510Dicks Sporting Goods, Inc. (b)
    
    
    2,347
    
    
    
    2,347Other (a) (b) (e)
    
    
    40,963
    
    
    
    42,700$
    134,417
    
    
    $
    132,285
 
 (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 nine months ended September 30, 2010
strengthened by approximately 4%in comparison to the same period in 2009, 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 $31.6
million and $30.6 million for the nine months ended September 30, 2010 and 2009, respectively.(c)
    
    This investment was acquired in July 2009.(d)
    
    The decrease was due to a CPI-based (or equivalent) rent decrease.(e)
    
    This tenant operates in the automotive industry. Included in Other are lease revenues from
four additional tenants operating in the automotive industry totaling $4.6 million and $5.4
million for the nine months ended September 30, 2010 and 2009, respectively, inclusive of
amounts attributable to noncontrolling interests of $0.3 million and $0.6 million,
respectively. CPA®:16  Global 9/30/2010 10-Q 25




---



##### Table of Contents



OwnershipInterest at
    
    
    Nine months ended September 30,Lessee
    
    September 30, 2010
    
    
    2010
    
    
    2009U-Haul Moving Partners, Inc. and Mercury Partners, L.P. (a)
    
    
    31
    %
    
    $
    24,276
    
    
    $
    22,379The New York Times Company (b)
    
    
    27
    %
    
    
    19,985
    
    
    
    15,034OBI A.G. (c)
    
    
    25
    %
    
    
    11,905
    
    
    
    12,158Hellweg Die Profi-Baumarkte GmbH & Co. KG (c)
    
    
    25
    %
    
    
    10,629
    
    
    
    10,914Pohjola Non-life Insurance Company(c)
    
    
    40
    %
    
    
    6,442
    
    
    
    6,793Police Prefecture, French Government (c)
    
    
    50
    %
    
    
    6,151
    
    
    
    5,979TietoEnator Plc(c)
    
    
    40
    %
    
    
    6,116
    
    
    
    6,348Schuler A.G. (c)
    
    
    33
    %
    
    
    4,602
    
    
    
    4,821Frontier Spinning Mills, Inc.
    
    
    40
    %
    
    
    3,350
    
    
    
    3,350Thales S.A. (c) (d)
    
    
    35
    %
    
    
    3,098
    
    
    
    8,099Actebis Peacock GmbH (c)
    
    
    30
    %
    
    
    2,945
    
    
    
    3,044Consolidated Systems, Inc.
    
    
    40
    %
    
    
    1,373
    
    
    
    1,373Actuant Corporation (c)
    
    
    50
    %
    
    
    1,301
    
    
    
    1,366Barth Europa Transporte e.K/MSR Technologies GmbH (formerly Lindenmaier
A.G. ) (c) (e)
    
    
    33
    %
    
    
    974
    
    
    
    1,531$
    103,147
    
    
    $
    103,189
 
 (a)
    
    The increase was due to a CPI-based (or equivalent) rent increase.(b)
    
    We acquired our interest in this investment in March 2009.(c)
    
    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, 2010
strengthened by approximately 4%in comparison to the same period in 2009, resulting in a
negative impact on lease revenues for our Euro-denominated investments in the current year
period.(d)
    
    The venture sold four of the five properties leased to Thales in July 2009.(e)
    
    The venture formerly leased two properties to Lindenmaier. In July 2009, the venture entered
into an interim lease agreement with Lindenmaier that provided for substantially lower rental
income. In April 2010, the venture entered into a lease agreement with a new tenant, Barth
Europa, at a vacant property formerly leased to Lindenmaier and in August 2010, MSR
Technologies GmbH took over the Lindenmaier business and entered into a new lease with the
venture.  CPA®:16  Global 9/30/2010 10-Q 26




---



##### Table of Contents



Lease Revenues
    Depreciation and Amortization
   Property Expenses
  Impairment Charges
    CPA®:16  Global 9/30/2010 10-Q 27




---



##### Table of Contents



Gain on Extinguishment of Debt
  Other Income and (Expenses)
   Discontinued Operations
    Net Income (Loss) Attributable to CPA ® :16  Global Shareholders
 ®
 Funds from Operations  as Adjusted (AFFO)
 ®
 Financial Condition
 Sources and Uses of Cash During the Period
  CPA®:16  Global 9/30/2010 10-Q 28




---



##### Table of Contents



Operating Activities
  Investing Activities
  Financing Activities
    Adjusted Cash Flow from Operating Activities
  CPA®:16  Global 9/30/2010 10-Q 29




---



##### Table of Contents



Summary of Financing
  September 30, 2010
    
    
    December 31, 2009BalanceFixed rate
    
    $
    1,356,882
    
    
    $
    1,385,550Variable rate (a)
    
    
    38,193
    
    
    
    60,339Total
    
    $
    1,395,075
    
    
    $
    1,445,889Percent of total debtFixed rate
    
    
    97
    %
    
    
    96
    %Variable rate (a)
    
    
    3
    %
    
    
    4
    %100
    %
    
    
    100
    %Weighted average interest rate at end of periodFixed rate
    
    
    5.9
    %
    
    
    5.9
    %Variable rate (a)
    
    
    5.6
    %
    
    
    6.0
    %
 
 (a)
    
    Variable rate debt at September 30, 2010 included (i) $3.8 million that has been effectively
converted to a fixed rate through an interest rate swap derivative instrument and (ii) $34.4
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 September 30,
2010, we have one non-recourse mortgage loan obligation with an interest reset feature that is
scheduled to reset to 5.32% in the first quarter of 2011. No other 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 9/30/2010 10-Q 30




---



##### 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)
    
    $
    1,392,956
    
    
    $
    28,800
    
    
    $
    57,444
    
    
    $
    208,065
    
    
    $
    1,098,647Deferred acquisition fees  Principal
    
    
    2,700
    
    
    
    1,911
    
    
    
    789
    
    
    
    
    
    
    
    Interest on borrowings and deferred acquisition fees
(b)
    
    
    559,235
    
    
    
    82,971
    
    
    
    159,156
    
    
    
    146,179
    
    
    
    170,929Subordinated disposition fees(c)
    
    
    1,013
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,013Build-to-suit and expansion commitments (d)
    
    
    13,685
    
    
    
    13,685
    
    
    
    
    
    
    
    
    
    
    
    Lending commitments (e)
    
    
    3,381
    
    
    
    3,381
    
    
    
    
    
    
    
    
    
    
    
    Operating and other lease commitments (f)
    
    
    55,802
    
    
    
    1,754
    
    
    
    3,548
    
    
    
    3,529
    
    
    
    46,971$
    2,028,772
    
    
    $
    132,502
    
    
    $
    220,937
    
    
    $
    357,773
    
    
    $
    1,317,560
 
 (a)
    
    Excludes $2.1 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 September 30, 2010.(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 two expansion projects.
Total estimated construction costs for these projects are currently projected to be $86.6
million, of which $72.9 million had been funded at September 30, 2010.(e)
    
    Represents unfunded amount on a commitment to provide a loan to a developer of a domestic
build-to-suit property. The total commitment for the loan is $23.8 million, of which $20.4
million had been funded at September 30, 2010.(f)
    
    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 $8.8 million.    CPA®:16  Global 9/30/2010 10-Q 31




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##### Table of Contents



Ownership Interest
    
    
    
    
    
    
    Total ThirdLessee
    
    September 30, 2010
    
    
    Total Assets
    
    
    Party Debt
    
    
    Maturity DateThales S.A. (a)
    
    
    35
    %
    
    $
    24,880
    
    
    $
    24,706
    
    
    
    7/2011U-Haul Moving Partners, Inc. and Mercury Partners, L.P.
    
    
    31
    %
    
    
    294,916
    
    
    
    161,258
    
    
    
    5/2014Actuant Corporation (a)
    
    
    50
    %
    
    
    17,101
    
    
    
    11,218
    
    
    
    5/2014TietoEnator Plc(a)
    
    
    40
    %
    
    
    91,206
    
    
    
    70,659
    
    
    
    7/2014The New York Times Company
    
    
    27
    %
    
    
    240,902
    
    
    
    117,317
    
    
    
    9/2014Pohjola Non-life Insurance Company (a)
    
    
    40
    %
    
    
    96,578
    
    
    
    80,492
    
    
    
    1/2015Hellweg Die Profi-Baumarkte GmbH & Co. KG (Hellweg 1)
(a)
    
    
    25
    %
    
    
    184,002
    
    
    
    97,969
    
    
    
    5/2015Actebis Peacock GmbH (a)
    
    
    30
    %
    
    
    49,096
    
    
    
    30,027
    
    
    
    7/2015Frontier Spinning Mills, Inc.
    
    
    40
    %
    
    
    38,950
    
    
    
    23,067
    
    
    
    8/2016Consolidated Systems, Inc.
    
    
    40
    %
    
    
    16,813
    
    
    
    11,413
    
    
    
    11/2016Barth Europa Transporte e.K/MSR Technologies GmbH
(formerly Lindenmaier A.G. ) (a)
    
    
    33
    %
    
    
    17,535
    
    
    
    11,927
    
    
    
    10/2017OBI A.G. (a)
    
    
    25
    %
    
    
    194,292
    
    
    
    160,339
    
    
    
    3/2018Police Prefecture, French Government (a)
    
    
    50
    %
    
    
    102,047
    
    
    
    85,381
    
    
    
    8/2020Schuler A.G. (a)
    
    
    33
    %
    
    
    70,305
    
    
    
    
    
    
    
    N/A$
    1,438,623
    
    
    $
    885,773
 
 (a)
    
    Dollar amounts shown are based on the applicable exchange rate of the foreign currency at
September 30, 2010. Supplemental Financial Measures
  Funds from Operations  as Adjusted
  CPA®:16  Global 9/30/2010 10-Q 32




---



##### Table of Contents



Three months ended September 30,
    
    
    Nine months ended September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Net income (loss) attributable to CPA®:16 - Global shareholders
    
    $
    10,909
    
    
    $
    1,836
    
    
    $
    24,376
    
    
    $
    (460
    )Adjustments:Depreciation and amortization of real property
    
    
    11,742
    
    
    
    12,375
    
    
    
    35,809
    
    
    
    35,756Loss (gain) on sale of real estate
    
    
    78
    
    
    
    (7,662
    )
    
    
    78
    
    
    
    (7,662
    )Proportionate share of adjustments to equity in net income of partially owned entities to
arrive at FFO:Depreciation and amortization of real property
    
    
    2,633
    
    
    
    3,181
    
    
    
    6,394
    
    
    
    7,754Gain on sale of real estate
    
    
    
    
    
    
    (3,879
    )
    
    
    
    
    
    
    (3,879
    )Proportionate share of adjustments for noncontrolling interests to arrive at FFO
    
    
    (3,881
    )
    
    
    (2,495
    )
    
    
    (8,909
    )
    
    
    (7,148
    )Total adjustments
    
    
    10,572
    
    
    
    1,520
    
    
    
    33,372
    
    
    
    24,821FFO  as defined by NAREIT
    
    
    21,481
    
    
    
    3,356
    
    
    
    57,748
    
    
    
    24,361Adjustments:Gain on deconsolidation of subsidiary
    
    
    
    
    
    
    
    
    
    
    (7,082
    )
    
    
    Gain on extinguishment of debt
    
    
    
    
    
    
    (2,313
    )
   
    
    
    
    
    
    (8,825
    )Other depreciation, amortization and non-cash charges
    
    
    21
    
    
    
    744
    
    
    
    (60
    )
    
    
    (998
    )Straight-line and other rent adjustments
    
    
    (1,239
    )
    
    
    (412
    )
    
    
    (545
    )
    
    
    952Impairment charges
    
    
    1,767
    
    
    
    24,125
    
    
    
    9,797
    
    
    
    45,210Proportionate share of adjustments to equity in net income of partially owned entities to
arrive at AFFO:Other depreciation, amortization and non-cash charges
    
    
    (1
    )
    
    
    (11
    )
    
    
    
    
    
    
    (133
    )Straight-line and other rent adjustments
    
    
    (49
    )
    
    
    (145
    )
    
    
    (200
    )
    
    
    (61
    )Impairment charges
    
    
    1,046
    
    
    
    (690
    )
    
    
    1,046
    
    
    
    297Loss on extinguishment of debt
    
    
    
    
    
    
    712
    
    
    
    
    
    
    
    712Proportionate share of adjustments for noncontrolling interests to arrive at AFFO
    
    
    (4,525
    )
    
    
    (9,482
    )
    
    
    (2,739
    )
    
    
    (5,440
    )Total adjustments
    
    
    (2,980
    )
    
    
    12,528
    
    
    
    217
    
    
    
    31,714AFFO
    
    $
    18,501
    
    
    $
    15,884
    
    
    $
    57,965
    
    
    $
    56,075
 Adjusted Cash Flow from Operating Activities
   CPA®:16  Global 9/30/2010 10-Q 33




---



##### Table of Contents



Nine months ended September 30,2010
    
    
    2009Cash flow provided by operating activities
    
    $
    91,009
    
    
    $
    87,648Adjustments:Distributions received from equity investments in real estate in excess of equity income, net
    
    
    3,761
    
    
    
    6,676Distributions paid to noncontrolling interests, net
    
    
    (9,567
    )
    
    
    (13,887
    )Changes in working capital
    
    
    (1,213
    )
    
    
    1,514Adjusted cash flow from operating activities
    
    $
    83,990
    
    
    $
    81,951Distributions declared
    
    $
    61,733
    
    
    $
    60,966
  
 Item 3.
    
    Quantitative and Qualitative Disclosures About Market Risk
 Market Risk
   Interest Rate Risk
    CPA®:16  Global 9/30/2010 10-Q 34




---



##### Table of Contents



2010
    
    
    2011
    
    
    2012
    
    
    2013
    
    
    2014
    
    
    Thereafter
    
    
    Total
    
    
    Fair valueFixed rate debt
    
    $
    9,792
    
    
    $
    25,360
    
    
    $
    27,423
    
    
    $
    30,548
    
    
    $
    95,140
    
    
    $
    1,168,619
    
    
    $
    1,356,882
    
    
    $
    1,295,244Variable rate debt
    
    $
    144
    
    
    $
    624
    
    
    $
    715
    
    
    $
    764
    
    
    $
    858
    
    
    $
    35,088
    
    
    $
    38,193
    
    
    $
    36,220
  Foreign Currency Exchange Rate Risk
    Other
  CPA®:16  Global 9/30/2010 10-Q 35




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##### Table of Contents



Item 4.
    
    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 the2010 Period
    
    shares purchased (a)
    
    
    paid per share
    
    
    plans or programs (a)
    
    
    plans or programs (a)July
    
    
    
    
    
    
    
    
    
    
    N/A
    
    
    
    N/AAugust
    
    
    
    
    
    
    
    
    
    
    N/A
    
    
    
    N/ASeptember
    
    
    396,431
    
    
    $
    8.56
    
    
    
    N/A
    
    
    
    N/ATotal
    
    
    396,431
 
 (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
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. CPA®:16  Global 9/30/2010 10-Q 36




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##### Table of Contents



Item 6.
    
    Exhibits
 Exhibit No.
    
    Description
    
    Method of Filing31.1
    
    
    Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
    
    Filed herewith31.2
    
    
    Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
    
    Filed herewith32
    
    
    Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
    
    Filed herewith
 CPA®:16  Global 9/30/2010 10-Q 37




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##### Table of Contents



SIGNATURES
  Corporate Property Associates 16  Global IncorporatedDate 11/12/2010
    By:
    /s/ Mark J. DeCesarisMark J. DeCesarisManaging Director and Chief Financial Officer
(Principal Financial Officer)Date 11/12/2010
    By:
    /s/ Thomas J. Ridings, Jr.Thomas J. Ridings, Jr.Executive Director and Chief Accounting Officer

(Principal Accounting Officer) CPA®:16  Global 9/30/2010 10-Q 38




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##### Table of Contents



EXHIBIT INDEX
 Exhibit No.
    
    Description
    
    Method of Filing31.1
    
    
    Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
    
    Filed herewith31.2
    
    
    Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
    
    Filed herewith32
    
    
    Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
    
    Filed herewith
 CPA®:16  Global 9/30/2010 10-Q 39