##### 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, 2007
 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
 (Exact name of registrant as specified in its charter)
 Maryland
    
    80-0067704(State of incorporation)
    
    (I.R.S. Employer Identification No.)50 Rockefeller PlazaNew York, New York
    
    10020(Address of principal executive office)
    
    (Zip Code)
 Investor Relations (212) 492-8920
(212) 492-1100  (Registrants telephone numbers, including area code)
 þ o
  o o þ
 o þ




---



##### 



INDEX
 Page No.PART I  FINANCIAL INFORMATIONItem 1.  Financial Statements*Consolidated Balance Sheets as of March 31, 2007 and December 31, 2006
    
    
    2Consolidated Statements of Income for the three months ended March 31, 2007 and 2006
    
    
    3Consolidated Statements of Comprehensive Income for the three months ended March 31, 2007 and 2006
    
    
    3Consolidated Statement of Shareholders Equity for the three months ended March 31, 2007
    
    
    4Consolidated Statements of Cash Flows for the three months ended March 31, 2007 and 2006
    
    
    5Notes to Consolidated Financial Statements
    
    
    6Item 2.  Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    14Item 3.  Quantitative and Qualitative Disclosures About Market Risk
    
    
    22Item 4T.  Controls and Procedures
    
    
    24PART II  OTHER INFORMATIONItem 2.  Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    25Item 6.  Exhibits
    
    
    25Signatures
    
    
    26EX-31.1: CERTIFICATIONEX-31.2: CERTIFICATIONEX-32: CERTIFICATIONS
  
 *
    
    The summarized consolidated financial statements contained herein are unaudited; however, in
the opinion of management, all adjustments (consisting of normal recurring adjustments)
necessary for a fair statement of such financial statements have been included. Forward Looking Statements
   CPA ® :16  Global 3/31/2007 10-Q  1




---



##### Table of Contents



CORPORATE PROPERTY ASSOCIATES 16  GLOBAL INCORPORATED
 
 PART I
 
 ITEM 1.  FINANCIAL STATEMENTS
 
 CONSOLIDATED BALANCE SHEETS (UNAUDITED)
 (in thousands, except share and per share amounts)
 March 31, 2007
    
    
    December 31, 2006(NOTE)AssetsReal estate, net
    
    $
    829,253
    
    
    $
    648,593Net investment in direct financing leases
    
    
    316,080
    
    
    
    308,073Equity investments in real estate
    
    
    114,099
    
    
    
    111,870Real estate under construction
    
    
    42,605
    
    
    
    75,372Mortgage notes receivable
    
    
    9,606
    
    
    
    9,603Cash and cash equivalents
    
    
    457,713
    
    
    
    464,223Intangible assets, net
    
    
    120,830
    
    
    
    108,001Other assets, net
    
    
    38,766
    
    
    
    49,905Total assets
    
    $
    1,928,952
    
    
    $
    1,775,640Liabilities and Shareholders EquityLiabilities:Limited recourse mortgage notes payable
    
    $
    789,539
    
    
    $
    630,795Note payable
    
    
    4,312
    
    
    
    3,450Accounts payable, accrued expenses and other liabilities
    
    
    14,185
    
    
    
    19,181Prepaid and deferred rental income and security deposits
    
    
    37,794
    
    
    
    34,749Due to affiliates
    
    
    55,542
    
    
    
    49,219Distributions payable
    
    
    18,557
    
    
    
    16,067Total liabilities
    
    
    919,929
    
    
    
    753,461Minority interest in consolidated entities
    
    
    16,057
    
    
    
    31,358Commitments and contingencies (Note 9)Shareholders equity:Common stock, $0.001 par value; 250,000,000 shares authorized;
115,637,373 and 114,701,851 shares issued and outstanding,
respectively
    
    
    116
    
    
    
    115Additional paid-in capital
    
    
    1,037,430
    
    
    
    1,028,933Distributions in excess of accumulated earnings
    
    
    (48,026
    )
    
    
    (40,679
    )Accumulated other comprehensive income
    
    
    11,593
    
    
    
    9,0901,001,113
    
    
    
    997,459Less, treasury stock at cost, 876,010 and 713,803 shares, respectively
    
    
    (8,147
    )
    
    
    (6,638
    )Total shareholders equity
    
    
    992,966
    
    
    
    990,821Total liabilities and shareholders equity
    
    $
    1,928,952
    
    
    $
    1,775,640
 
   CPA ® :16  Global 3/31/2007 10-Q  2




---



##### 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 31,2007
    
    
    2006RevenuesRental income
    
    $
    18,243
    
    
    $
    10,355Interest income from direct financing leases
    
    
    6,146
    
    
    
    3,152Other operating income
    
    
    450
    
    
    
    81624,839
    
    
    
    14,323Operating ExpensesDepreciation and amortization
    
    
    (5,232
    )
    
    
    (2,633
    )Property expenses
    
    
    (3,989
    )
    
    
    (2,812
    )General and administrative
    
    
    (1,319
    )
    
    
    (1,074
    )(10,540
    )
    
    
    (6,519
    )Other Income and ExpensesIncome from equity investments in real estate
    
    
    1,752
    
    
    
    1,703Other interest income
    
    
    6,197
    
    
    
    1,461Minority interest in income
    
    
    (510
    )
    
    
    (475
    )Gain on foreign currency transactions, derivative instruments and other, net
    
    
    269
    
    
    
    26Interest expense
    
    
    (10,192
    )
    
    
    (5,286
    )(2,484
    )
    
    
    (2,571
    )Income
before income taxes
    
    
    11,815
    
    
    
    5,233Provision
for income taxes
    
    
    (517
    )
    
    
    (233
    )Net Income
    
    $
    11,298
    
    
    $
    5,000Earnings Per Share
    
    $
    0.10
    
    
    $
    0.09Distributions Declared Per Share
    
    $
    0.1617
    
    
    $
    0.1575Weighted Average Shares Outstanding
    
    
    114,673,078
    
    
    
    57,485,161
  
 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)  (in thousands)
 Three months ended March 31,2007
    
    
    2006Net Income
    
    $
    11,298
    
    
    $
    5,000Other Comprehensive IncomeChange in unrealized gain (loss) on marketable securities
    
    
    6
    
    
    
    (26
    )Foreign currency translation adjustment
    
    
    2,204
    
    
    
    2,022Change in unrealized gain on derivative instrument
    
    
    293
    
    
    
    3742,503
    
    
    
    2,370Comprehensive Income
    
    $
    13,801
    
    
    $
    7,370
  CPA ® :16  Global 3/31/2007 10-Q  3




---



##### Table of Contents



CORPORATE PROPERTY ASSOCIATES 16  GLOBAL INCORPORATED
 
 CONSOLIDATED
STATEMENT OF SHAREHOLDERS EQUITY (UNAUDITED)
 For the three months ended March 31, 2007
 (in thousands, except share and per share amounts)
 Distributions
    
    
    Accumulatedin Excess of
    
    
    OtherCommon
    
    
    Additional
    
    
    Accumulated
    
    
    ComprehensiveShares
    
    
    Stock
    
    
    Paid-In Capital
    
    
    Earnings
    
    
    Income
    
    
    Treasury Stock
    
    
    TotalBalance at December 31, 2006
    
    
    113,988,048
    
    
    $
    115
    
    
    $
    1,028,933
    
    
    $
    (40,679
    )
    
    $
    9,090
    
    
    $
    (6,638
    )
    
    $
    990,821Cumulative effect adjustment from
adoption of FIN 48 (Note 11)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (90
    )
    
    
    
    
    
    
    
    
    
    
    (90
    )Balance at January 1, 2007
    
    
    113,988,048
    
    
    
    115
    
    
    
    1,028,933
    
    
    
    (40,769
    )
    
    
    9,090
    
    
    
    (6,638
    )
    
    
    990,731Shares issued $.001 par, at $10 per
share, net of offering costs
    
    
    755,815
    
    
    
    1
    
    
    
    6,700
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,701Shares, $.001 par, issued to the
advisor at $10 per share
    
    
    179,707
    
    
    
    
    
    
    
    1,797
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,797Distributions declared
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (18,555
    )
    
    
    
    
    
    
    
    
    
    
    (18,555
    )Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    11,298
    
    
    
    
    
    
    
    
    
    
    
    11,298Change in other comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,503
    
    
    
    
    
    
    
    2,503Repurchase of shares
    
    
    (162,207
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,509
    )
    
    
    (1,509
    )Balance at March 31, 2007
    
    
    114,761,363
    
    
    $
    116
    
    
    $
    1,037,430
    
    
    $
    (48,026
    )
    
    $
    11,593
    
    
    $
    (8,147
    )
    
    $
    992,966
  CPA ® :16  Global 3/31/2007 10-Q  4




---



##### Table of Contents



CORPORATE PROPERTY ASSOCIATES 16  GLOBAL INCORPORATED
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 (in thousands)
 Three months ended March 31,2007
    
    
    2006Cash Flows  Operating ActivitiesNet income
    
    $
    11,298
    
    
    $
    5,000Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization including intangible assets and deferred financing costs
    
    
    5,304
    
    
    
    2,683Straight-line rent adjustments and amortization of rent-related intangibles
    
    
    (3
    )
    
    
    (531
    )Income from equity investments in real estate in excess of distributions received
    
    
    (1,455
    )
    
    
    (408
    )Minority interest in income
    
    
    510
    
    
    
    475Issuance of shares to affiliate in satisfaction of fees due
    
    
    1,795
    
    
    
    773Realized (gain) loss on foreign currency transactions, net
    
    
    (84
    )
    
    
    4Unrealized gain on foreign currency transactions, net
    
    
    (185
    )
    
    
    (30
    )(Increase) decrease in funds in escrow
    
    
    (509
    )
    
    
    73Increase in
due to affiliates (a)
    
    
    2,480
    
    
    
    2,595Changes in
operating assets and liabilities (a)
    
    
    3,345
    
    
    
    (647
    )Net cash provided by operating activities
    
    
    22,496
    
    
    
    9,987Cash Flows  Investing ActivitiesDistributions from equity investments in real estate in excess of equity income
    
    
    800
    
    
    
    915Acquisition of real estate
    
    
    (171,229
    )
    
    
    (40,935
    )Contributions to equity investments in real estate
    
    
    (708
    )
    
    
    (10,088
    )Funds placed in escrow for future acquisition and construction of real estate
    
    
    
    
    
    
    (7,957
    )Release of funds held in escrow for acquisition and construction of real estate
    
    
    3,048
    
    
    
    2,832VAT taxes paid in connection with acquisition of real estate
    
    
    (796
    )
    
    
    VAT taxes recovered in connection with acquisition of real estate
    
    
    
    
    
    
    4,008Proceeds
from maturity of short-term investment
    
    
    1,698
    
    
    
    Receipt of principal payment of mortgage note receivable
    
    
    70
    
    
    
    66Net cash used in investing activities
    
    
    (167,117
    )
    
    
    (51,159
    )Cash Flows  Financing ActivitiesDistributions paid
    
    
    (16,065
    )
    
    
    (8,926
    )Distributions paid to minority interest partners
    
    
    (15,872
    )
    
    
    (510
    )Proceeds from mortgages and notes payable
    
    
    167,583
    
    
    
    10,614Scheduled payments of mortgage principal
    
    
    (2,214
    )
    
    
    (1,314
    )Deferred financing costs and mortgage deposits, net of deposits refunded
    
    
    (592
    )
    
    
    (358
    )Proceeds from issuance of shares, net of costs of raising capital
    
    
    6,703
    
    
    
    3,963Purchase of treasury stock
    
    
    (1,509
    )
    
    
    (1,045
    )Net cash provided by financing activities
    
    
    138,034
    
    
    
    2,424Change in Cash and Cash Equivalents During the PeriodEffect of exchange rate changes on cash
    
    
    77
    
    
    
    54Net decrease in cash and cash equivalents
    
    
    (6,510
    )
    
    
    (38,694
    )Cash and cash equivalents, beginning of period
    
    
    464,223
    
    
    
    155,374Cash and cash equivalents, end of period
    
    $
    457,713
    
    
    $
    116,680
 
 (a)
    
    Changes in due to affiliates and operating assets and liabilities exclude amounts
related to the raising of capital (financing
activities) pursuant to our public offerings. At March 31, 2007 and 2006, the amount due to
our advisor for such costs was
$8,609 and $5,804, respectively. The above caption also excludes deferred acquisition fees
payable related to the acquisition
of real estate (investing activities).  CPA ® :16  Global 3/31/2007 10-Q  5




---



##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 (in thousands, except share and per share amounts)
 Note 1. Business
 
 Note 2. Basis of Presentation
  Basis of Consolidation
    Information about International Geographic Areas
  CPA ® :16  Global 3/31/2007 10-Q  6




---



##### Table of Contents



Reclassifications
  Out-of-Period Adjustment
  Recent Accounting Pronouncements
 SFAS 155
  FIN 48
  SFAS 157
  SFAS 159
  Note 3. Organization and Offerings
   CPA ® :16  Global 3/31/2007 10-Q  7




---



##### Table of Contents



Note 4. Agreements and Transactions with Related Parties
  st
     Note 5. Real Estate
  March 31, 2007
    
    
    December 31, 2006Cost
    
    $
    848,462
    
    
    $
    663,810Less: Accumulated depreciation
    
    
    (19,209
    )
    
    
    (15,217
    )$
    829,253
    
    
    $
    648,593
 CPA ® :16  Global 3/31/2007 10-Q  8




---



##### Table of Contents



Note 6. Equity Investments in Real Estate
 ® ®
  March 31, 2007
    
    
    December 31, 2006Assets (primarily real estate)
    
    $
    312,381
    
    
    $
    311,116Liabilities (primarily mortgage notes payable)
    
    
    (193,012
    )
    
    
    (194,281
    )Partners equity
    
    $
    119,369
    
    
    $
    116,835Our share of equity investees net assets
    
    $
    36,923
    
    
    $
    36,150Three months ended March 31,2007
    
    
    2006Revenue (primarily rental income)
    
    $
    7,144
    
    
    $
    7,141Expenses (primarily interest on mortgages and depreciation)
    
    
    (4,623
    )
    
    
    (4,692
    )Net income
    
    $
    2,521
    
    
    $
    2,449Our share of net income from equity investment in real estate
    
    $
    770
    
    
    $
    748
   March 31, 2007
    
    
    December 31, 2006Assets (primarily real estate)
    
    $
    876,432
    
    
    $
    856,156Liabilities (primarily mortgage notes payable)
    
    
    (651,268
    )
    
    
    (635,993
    )Partners and members equity
    
    $
    225,164
    
    
    $
    220,163Our share of equity investees net assets
    
    $
    77,176
    
    
    $
    75,720Three months ended March 31,2007
    
    
    2006Revenue (primarily rental income and interest income on direct financing leases)
    
    $
    17,471
    
    
    $
    11,261Expenses (primarily interest on mortgages and depreciation)
    
    
    (14,122
    )
    
    
    (8,080
    )Net income
    
    $
    3,349
    
    
    $
    3,181Our share of net income from equity investments in real estate
    
    $
    982
    
    
    $
    955
 Note 7. Acquisitions of Real Estate-Related Investments
 Real Estate Acquired
 2007
 CPA ® :16  Global 3/31/2007 10-Q  9




---



##### Table of Contents



2006
 Equity Investments in Real Estate Acquired
 2007
 2006
 Real Estate Under Construction
 2007
 2006
 Note 8. Intangibles
   March 31, 2007
    
    
    December 31, 2006Lease intangibles
In-place lease
    
    $
    78,295
    
    
    $
    67,984Tenant relationship
    
    
    23,050
    
    
    
    19,778Above-market rent
    
    
    28,702
    
    
    
    27,689Less: accumulated amortization
    
    
    (9,217
    )
    
    
    (7,450
    )$
    120,830
    
    
    $
    108,001Below-market rent
    
    $
    (25,710
    )
    
    $
    (24,792
    )Less: accumulated amortization
    
    
    1,431
    
    
    
    1,125$
    (24,279
    )
    
    $
    (23,667
    )
  CPA ® :16  Global 3/31/2007 10-Q  10




---



##### Table of Contents



Note 9. Commitments and Contingencies
   ®
 ® ®
 ® ® ® ® ®
 ® ® ® ® ®
   CPA ® :16  Global 3/31/2007 10-Q  11




---



##### Table of Contents



Note 10. Risk Management and Use of Financial Instruments
 Risk Management
  Use of Derivative Financial Instruments
   
 Concentration of Credit Risk
   CPA ® :16  Global 3/31/2007 10-Q  12




---



##### Table of Contents



Note 11. Income Taxes
     Note 12. Subsequent Events
    CPA ® :16  Global 3/31/2007 10-Q  13




---



##### Table of Contents



ITEM 2.  MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS  (in thousands, except share and per share amounts)
  Executive Overview
 Business Overview
  Current Developments and Trends
  Investment Activity
 Financing Activity
 Quarterly Distribution
 SEC
Investigation
  Investment Activity
  Financing Activity
 CPA ® :16  Global 3/31/2007 10-Q  14




---



##### Table of Contents



Directors
   Three months ended March 31,2007
    
    2006Total investments(a)
    
    $
    158,598
    
    
    $
    103,047Number of investments
    
    
    5
    
    
    
    4Average investment size
    
    $
    31,720
    
    
    $
    25,762Percentage of international investments
    
    
    20
    %
    
    
    44
    %
 
 (a)
    
    Inclusive of minority interest or reflects our proportionate share of total cost under the
equity method of accounting, as applicable, and based upon the applicable foreign exchange
rate at the date of acquisition, as applicable.     How Management Evaluates Results of Operations
  CPA ® :16  Global 3/31/2007 10-Q  15




---



##### Table of Contents



Three months ended March 31,2007
    
    
    2006Rental income
    
    $
    18,243
    
    
    $
    10,355Interest income from direct financing leases
    
    
    6,146
    
    
    
    3,152$
    24,389
    
    
    $
    13,507
 CPA ® :16  Global 3/31/2007 10-Q  16




---



##### Table of Contents



Three months ended March 31,2007
    
    
    2006Telcordia Technologies, Inc.
    
    $
    2,250
    
    
    $
    2,206Fraikin SAS(a) (b) (d)
    
    
    1,311
    
    
    
    The Talaria Company (Hinckley) (c)
    
    
    1,251
    
    
    
    1,254Huntsman International, LLC
    
    
    1,006
    
    
    
    1,006Nordic Cold Storage LLC (d)
    
    
    1,000
    
    
    
    MetoKote Corporation, MetoKote Canada Limited and MetoKote de Mexico(b)
    
    
    961
    
    
    
    935Ply Gem Industries, Inc. (b)
    
    
    913
    
    
    
    885TRW Vehicle Safety Systems Inc. (a)
    
    
    892
    
    
    
    Kings Super Markets Inc.(a)
    
    
    835
    
    
    
    Performance Fibers GmBH (a) (b)
    
    
    810
    
    
    
    Finisar Corporation
    
    
    794
    
    
    
    810Gortz & Schiele GmBH & Co. and Goertz & Schiele Corporation (a) (b) (c)
    
    
    790
    
    
    
    Foss Manufacturing Company, LLC
    
    
    782
    
    
    
    799Polestar Petty Ltd. (b)
    
    
    727
    
    
    
    642Dicks Sporting Goods, Inc. (c) (d)
    
    
    673
    
    
    
    336LFD Manufacturing Limited, IDS Logistics (Thailand) Limited and
IDS Manufacturing SDN BHD(a) (b)
    
    
    641
    
    
    
    573Edgen Murray Europe Limited (f/k/a Murray International Metals, Limited) (b)
    
    
    561
    
    
    
    496Bobs Discount Furniture, LLC (a)
    
    
    537
    
    
    
    240Hilite Germany GmbH & Co. KG (a) (b)
    
    
    504
    
    
    
    Plantagen Finland Oy and Plantagen Sverige AB (b)
    
    
    446
    
    
    
    402HMS Healthcare, Inc.
    
    
    419
    
    
    
    426Gateway Medical Research, Inc.(a)
    
    
    412
    
    
    
    Xpedite Systems, Inc.
    
    
    398
    
    
    
    398Southwest Convenience Stores, LLC(a)
    
    
    398
    
    
    
    Other (a) (b) (d)
    
    
    5,078
    
    
    
    2,099$
    24,389
    
    
    $
    13,507
 
 (a)
    
    We acquired or placed into service our interest in this investment during 2006.(b)
    
    Revenue amounts are subject to fluctuations in foreign currency exchange rates.(c)
    
    Includes lease revenues applicable to minority interests totaling $1,072 and $712 for the
three months ended March 31, 2007 and 2006, respectively.(d)
    
    We acquired or placed into service our interest in this investment during 2007. CPA ® :16  Global 3/31/2007 10-Q  17




---



##### Table of Contents



Three months ended March 31,2007
    
    
    2006U-Haul Moving Partners, Inc. and Mercury Partners, LP
    
    $
    2,196
    
    
    $
    2,196Thales S.A.(a) (b)
    
    
    1,096
    
    
    
    942OBI A.G. (a) (c) (d)
    
    
    887
    
    
    
    8Hellweg Die Profi-Baumarkte GmbH & Co. KG (a)
    
    
    831
    
    
    
    759Police Prefecture, French Government (a)
    
    
    816
    
    
    
    746Pohjola Non-life Insurance Company(a)
    
    
    784
    
    
    
    730TietoEnator Plc (a)
    
    
    744
    
    
    
    683Actuant Corporation(a)
    
    
    200
    
    
    
    178Consolidated Systems, Inc. (c)
    
    
    72
    
    
    
    $
    7,626
    
    
    $
    6,242
 
 (a)
    
    Revenue amounts are subject to fluctuations in foreign currency exchange rates.(b)
    
    Increase is primarily due to INSEE-based rent increase.(c)
    
    We acquired our interest in this investment during 2006.(d)
    
    We acquired an interest in an additional property leased to this tenant during 2007. Results of Operations
  Lease Revenues
    Other
Operating Income
   Depreciation and Amortization
  CPA ® :16  Global 3/31/2007 10-Q  18




---



##### Table of Contents



Property Expenses
  General and Administrative
  Other Interest Income
  Interest Expense
  Net Income
  Financial Condition
 Uses of Cash During the Period
  Operating Activities
 Investing Activities
 Financing Activities
 CPA ® :16  Global 3/31/2007 10-Q  19




---



##### Table of Contents



Summary of Financing
  March 31,2007
    
    
    2006Balance:Fixed rate
    
    $
    763,503
    
    
    $
    369,173Variable rate (1)
    
    
    30,348
    
    
    
    Total
    
    $
    793,851
    
    
    $
    369,173Percent of total debt:Fixed rate
    
    
    96
    %
    
    
    100
    %Variable rate(1)
    
    
    4
    %
    
    
    0
    %100
    %
    
    
    100
    %Weighted average interest rate at end of period:Fixed rate
    
    
    5.90
    %
    
    
    5.88
    %Variable rate(1)
    
    
    5.09
    %
    
    
    N/A
 
 (1)
    
    Included in variable rate debt at March 31, 2007 is (i) $4,312 in aggregate principal of
notes payable which have not been hedged and (ii) a $26,036 mortgage
obligation which is
currently fixed rate but which has an interest rate reset feature
which will change the interest
rate to a new fixed rate during the term. Cash Resources
   
    The impact from any investments we enter into during 2007, the full year impact of
investments entered into in 2006 and the expected completion of several build-to-suit
projects in 2007, all of which we currently expect will have a net positive impact on cash
flow.
    The advisors election in 2007 to continue to receive asset management and performance fees
in restricted shares will result in additional cash flow.
    Scheduled rent increases on several properties during 2007 should result in additional cash
flow.
 Cash Requirements
   
    Deferred acquisition fee installments and interest on deferred acquisition fees totaling
$17,905 and $2,300, respectively. These amounts will be paid in cash in accordance with the
terms of the advisory agreement and we expect to use our existing cash resources to make
these payments. In addition, as of March 31, 2007 we owe an additional $13,769 in deferred
acquisition fee installments, of which $8,054 will become payable on January 1, 2008 if we
meet the performance criterion, with the remainder due in 2009 and 2010.
    Performance fees
totaling $11,945, which will be paid through the issuance of restricted common stock. As the
advisor has elected to continue to receive asset management and performance fees in common
stock in 2007, any
 CPA ® :16  Global 3/31/2007 10-Q  20




---



##### Table of Contents



additional performance fees that accrue prior to meeting the performance
criterion will also be paid through the issuance of common stock. Aggregate Contractual Agreements
  Less than
    
    
    
    
    
    
    
    
    
    
    More thanTotal
    
    
    1 year
    
    
    1  3 years
    
    
    3  5 years
    
    
    5 yearsMortgage notes payable  Principal
    
    $
    789,539
    
    
    $
    11,605
    
    
    $
    28,389
    
    
    $
    32,880
    
    
    $
    716,665Mortgage notes payable  Interest
    
    
    473,514
    
    
    
    46,587
    
    
    
    90,964
    
    
    
    87,923
    
    
    
    248,040Note payable  Principal (1)
    
    
    4,312
    
    
    
    
    
    
    
    4,312
    
    
    
    
    
    
    
    Note payable  Interest
    
    
    224
    
    
    
    184
    
    
    
    40
    
    
    
    
    
    
    
    Deferred acquisition fees  Principal(2)
    
    
    31,674
    
    
    
    25,959
    
    
    
    5,715
    
    
    
    
    
    
    
    Deferred acquisition fees  Interest(2)
    
    
    3,378
    
    
    
    3,040
    
    
    
    338
    
    
    
    
    
    
    
    Build-to-suit commitments (3)
    
    
    47,850
    
    
    
    47,850
    
    
    
    
    
    
    
    
    
    
    
    Operating leases (4)
    
    
    3,654
    
    
    
    364
    
    
    
    731
    
    
    
    759
    
    
    
    1,800$
    1,354,145
    
    
    $
    135,589
    
    
    $
    130,489
    
    
    $
    121,562
    
    
    $
    966,505
 
 (1)
    Represents a note payable obtained in connection with an investment in France in order to
fund the payment of value added taxes.(2)
    Includes deferred acquisition fees and accrued interest thereon of $17,905 and $2,300,
respectively, which will be payable to the advisor once we meet our performance criterion,
which we currently expect to occur during the second quarter of 2007.(3)
    Represents remaining build-to-suit commitments for four projects:
    Blairsville, Pennsylvania  estimated total construction costs are currently projected
to be $25,152 of which $19,027 was funded as of March 31, 2007.
    Bloomington, Minnesota  estimated total construction costs are currently projected to
be $47,200 of which $15,502 was funded as of March 31, 2007.
    Norwich, Connecticut  estimated total construction costs are currently projected to
be $12,500 of which $9,473 was funded as of March 31, 2007.
    Columbia, South Carolina  estimated total construction costs are currently projected
to be $7,000.(4)
    Operating lease obligations consist primarily of 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. Such amounts are allocated
among the entities based on gross revenues and are adjusted quarterly.  CPA ® :16  Global 3/31/2007 10-Q  21




---



##### Table of Contents



ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK  (in thousands)
 Market Risks
     Interest Rate Risk
      2007
    
    2008
    
    2009
    
    2010
    
    2011
    
    Thereafter
    
    Total
    
    Fair valueFixed rate debt
    
    $
    8,469
    
    
    $
    12,751
    
    
    $
    14,346
    
    
    $
    15,524
    
    
    $
    16,872
    
    
    $
    695,541
    
    
    $
    763,503
    
    
    $
    765,835Weighted average interest rate
    
    
    5.89
    %
    
    
    5.92
    %
    
    
    5.93
    %
    
    
    5.94
    %
    
    
    5.98
    %
    
    
    5.90
    %Variable rate debt
    
    $
    
    
    
    $
    4,475
    
    
    $
    325
    
    
    $
    325
    
    
    $
    325
    
    
    $
    24,898
    
    
    $
    30,348
    
    
    $
    30,348
  CPA ® :16  Global 3/31/2007 10-Q  22




---



##### Table of Contents



Foreign Currency Exchange Rate Risk
   CPA ® :16  Global 3/31/2007 10-Q  23




---



##### Table of Contents



Item 4T.  Controls and Procedures
 Disclosure Controls and Procedures
   Changes in Internal Control over Financial Reporting
  CPA ® :16  Global 3/31/2007 10-Q  24




---



##### Table of Contents



PART II  (in thousands, except share and per share amounts)
 
 Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds
 (a)
    
    For the three months ended March 31, 2007, 179,707 shares of common stock were issued to the
advisor as consideration for asset management fees. Shares were issued at $10 per share. Since
none of these transactions were considered to have involved a public offering within the
meaning of Section 4(2) of the Securities Act, as amended, the shares issued were deemed to be
exempt from registration. In acquiring our shares, the advisor represented that such interests
were being acquired by it for the purposes of investment and not with a view to the
distribution thereof.(c)
    
    Issuer Purchases of Equity Securities
 Maximum number (orTotal number of shares
    
    approximate dollar value) ofpurchased as part of
    
    shares that may yet beTotal number of
    
    Average price
    
    publicly announced
    
    purchased under the2007 Period
    
    shares purchased(1)
    
    paid per share
    
    plans or programs(1)
    
    plans or programs(1)January
    
    
    
    
    
    
    
    
    
    
    N/A
    
    
    
    N/AFebruary
    
    
    
    
    
    
    
    
    
    
    N/A
    
    
    
    N/AMarch
    
    
    162,207
    
    
    $
    9.30
    
    
    
    N/A
    
    
    
    N/ATotal
    
    
    162,207
 
 (1)
    
    All shares were purchased pursuant to our redemption plan, which we announced in December
2003. Under our redemption plan we may elect to redeem shares of our common stock subject to
certain conditions and limitations. The maximum amount of shares purchasable by us in any
period depends on the availability of funds generated by the Amended and Restated 2003
Distribution Reinvestment and Stock Purchase Plan and other factors at the discretion of our
Board of Directors. However, at no time during a 12-month period may the number of shares
redeemed by us exceed 5% of the number of shares of our outstanding common stock at the
beginning of such period. The redemption plan will terminate if and when our shares are listed
on a national securities exchange or included for quotation on Nasdaq. 
 Item 6.  Exhibits
 Exhibit No.
    
    Description
    
    Method of Filing31.1
    
    Certification of Chief Executive
Officer pursuant to Section 302 of
the Sarbanes-Oxley Act of 2002
    
    Filed herewith31.2
    
    Certification of Chief Financial
Officer pursuant to Section 302 of
the Sarbanes-Oxley Act of 2002
    
    Filed herewith32
    
    Certifications of Chief Executive
Officer and Chief Financial Officer
pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002
    
    Filed herewith
 CPA ® :16  Global 3/31/2007 10-Q  25




---



##### Table of Contents



SIGNATURES
  Corporate Property Associates 16  Global IncorporatedDate 5/15/2007
    By:
    /s/ Mark J. DeCesarisMark J. DeCesarisManaging Director and acting Chief Financial Officer
(acting Principal Financial Officer)Date 5/15/2007
    By:
    /s/ Claude FernandezClaude FernandezManaging Director and Chief Accounting Officer
(Principal Accounting Officer) CPA ® :16  Global 3/31/2007 10-Q  26