##### 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, 2008
 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
    
    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
 þ 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*Consolidated Balance Sheets as of March 31, 2008 and December 31, 2007
    
    
    2Consolidated Statements of Income for the three months ended March 31, 2008 and 2007
    
    
    3Consolidated Statements of Comprehensive Income for the three months ended March 31, 2008 and 2007
    
    
    3Consolidated Statements of Cash Flows for the three months ended March 31, 2008 and 2007
    
    
    4Notes to Consolidated Financial Statements
    
    
    5Item 2.  Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    16Item 3.  Quantitative and Qualitative Disclosures About Market Risk
    
    
    26Item 4T.  Controls and Procedures
    
    
    27PART II  OTHER INFORMATIONItem 2.  Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    28Item 6.  Exhibits
    
    
    28Signatures
    
    
    29EX-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 3/31/2008 10-Q 1




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##### 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, 2008
    
    
    December 31, 2007(NOTE)AssetsReal estate, net
    
    $
    1,709,963
    
    
    $
    1,597,457Net investment in direct financing leases
    
    
    370,563
    
    
    
    343,721Equity investments in real estate
    
    
    187,720
    
    
    
    178,661Real estate under construction
    
    
    6,960
    
    
    
    50,140Notes receivable
    
    
    384,111
    
    
    
    358,079Cash and cash equivalents
    
    
    209,973
    
    
    
    211,759Intangible assets, net
    
    
    164,269
    
    
    
    163,824Funds in escrow
    
    
    134,287
    
    
    
    137,473Other assets, net
    
    
    39,819
    
    
    
    40,755Total assets
    
    $
    3,207,665
    
    
    $
    3,081,869Liabilities and Shareholders EquityLiabilities:Non-recourse debt
    
    $
    1,527,003
    
    
    $
    1,403,299Accounts payable, accrued expenses and other liabilities
    
    
    61,712
    
    
    
    69,419Prepaid and deferred rental income and security deposits
    
    
    99,058
    
    
    
    96,057Due to affiliates
    
    
    21,322
    
    
    
    52,291Distributions payable
    
    
    19,652
    
    
    
    19,432Total liabilities
    
    
    1,728,747
    
    
    
    1,640,498Minority interest in consolidated entities
    
    
    449,890
    
    
    
    420,274Commitments and contingencies (Note 8)Shareholders equity:Common stock, $0.001 par value; 250,000,000 shares authorized;
121,782,206 and 120,567,308 shares issued and outstanding, respectively
    
    
    122
    
    
    
    121Additional paid-in capital
    
    
    1,097,202
    
    
    
    1,085,506Distributions in excess of accumulated earnings
    
    
    (96,321
    )
    
    
    (82,481
    )Accumulated other comprehensive income
    
    
    44,129
    
    
    
    31,9051,045,132
    
    
    
    1,035,051Less, treasury stock at cost, 1,731,316 and 1,500,198 shares, respectively
    
    
    (16,104
    )
    
    
    (13,954
    )Total shareholders equity
    
    
    1,029,028
    
    
    
    1,021,097Total liabilities and shareholders equity
    
    $
    3,207,665
    
    
    $
    3,081,869
   CPA ® :16  Global 3/31/2008 10-Q 2




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##### Table of Contents



CORPORATE
PROPERTY ASSOCIATES 16  GLOBAL INCORPORATED
 
 CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)  (in thousands, except share and per share amounts)
 Three months ended March 31,2008
    
    
    2007RevenuesRental income
    
    $
    36,781
    
    
    $
    18,243Interest income from direct financing leases
    
    
    7,081
    
    
    
    6,146Interest income on notes receivable
    
    
    7,281
    
    
    
    306Other income
    
    
    5,115
    
    
    
    14456,258
    
    
    
    24,839Operating ExpensesDepreciation and amortization
    
    
    (11,129
    )
    
    
    (5,232
    )Property expenses
    
    
    (11,543
    )
    
    
    (3,989
    )General and administrative
    
    
    (3,270
    )
    
    
    (1,319
    )(25,942
    )
    
    
    (10,540
    )Other Income and ExpensesIncome from equity investments in real estate
    
    
    2,553
    
    
    
    1,752Other interest income
    
    
    1,592
    
    
    
    6,197Minority interest in income
    
    
    (8,198
    )
    
    
    (510
    )Gain on foreign currency transactions, derivative instruments and other, net
    
    
    2,184
    
    
    
    269Interest expense
    
    
    (21,307
    )
    
    
    (10,192
    )(23,176
    )
    
    
    (2,484
    )Income before income taxes
    
    
    7,140
    
    
    
    11,815Provision for income taxes
    
    
    (1,328
    )
    
    
    (517
    )Net Income
    
    $
    5,812
    
    
    $
    11,298Earnings Per Share
    
    $
    0.05
    
    
    $
    0.10Weighted Average Shares Outstanding
    
    
    119,940,316
    
    
    
    114,673,078Distributions Declared Per Share
    
    $
    0.1637
    
    
    $
    0.1617
  
 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)  (in thousands)
 Three months ended March 31,2008
    
    
    2007Net Income
    
    $
    5,812
    
    
    $
    11,298Other Comprehensive IncomeChange in unrealized (loss) gain on marketable securities
    
    
    (19
    )
    
    
    6Foreign currency translation adjustment
    
    
    13,505
    
    
    
    2,204Change in unrealized gain on derivative instruments
    
    
    (1,262
    )
    
    
    29312,224
    
    
    
    2,503Comprehensive Income
    
    $
    18,036
    
    
    $
    13,801
  CPA ® :16  Global 3/31/2008 10-Q 3




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##### Table of Contents



CORPORATE
PROPERTY ASSOCIATES 16  GLOBAL INCORPORATED
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)  (in thousands)
 Three months ended March 31,2008
    
    
    2007Cash Flows  Operating ActivitiesNet income
    
    $
    5,812
    
    
    $
    11,298Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization including intangible assets and deferred financing
costs
    
    
    12,170
    
    
    
    5,304Straight-line rent adjustments and amortization of rent-related intangibles
    
    
    (299
    )
    
    
    (3
    )Income from equity investments in real estate in excess of distributions received
    
    
    (1,409
    )
    
    
    (1,455
    )Minority interest in income
    
    
    8,198
    
    
    
    510Issuance of shares to affiliate in satisfaction of fees due
    
    
    3,395
    
    
    
    1,795Realized gain on foreign currency transactions, net
    
    
    (763
    )
    
    
    (84
    )Unrealized gain on foreign currency and derivative transactions, net
    
    
    (1,421
    )
    
    
    (185
    )Change in other operating assets and liabilities, net
    
    
    1,786
    
    
    
    5,316Net cash provided by operating activities
    
    
    27,469
    
    
    
    22,496Cash Flows  Investing ActivitiesDistributions from equity investments in real estate in excess of equity income
    
    
    653
    
    
    
    800Contributions to equity investments in real estate
    
    
    (2,298
    )
    
    
    (708
    )Acquisitions of real estate and other capital expenditures
    
    
    (61,477
    )
    
    
    (171,229
    )Funding of note receivable
    
    
    (815
    )
    
    
    Funds placed in escrow for future acquisition and construction of real estate
    
    
    (17,751
    )
    
    
    Release of funds held in escrow for acquisition and construction of real estate
    
    
    19,844
    
    
    
    3,048VAT taxes paid in connection with acquisitions of real estate
    
    
    
    
    
    
    (796
    )Proceeds from maturity of short-term investment
    
    
    
    
    
    
    1,698Receipt of principal payment of mortgage note receivable
    
    
    74
    
    
    
    70Payment of deferred acquisition fees to affiliate
    
    
    (29,546
    )
    
    
    Net cash used in investing activities
    
    
    (91,316
    )
    
    
    (167,117
    )Cash Flows  Financing ActivitiesDistributions paid
    
    
    (19,432
    )
    
    
    (16,065
    )Distributions paid to minority interest partners
    
    
    (7,198
    )
    
    
    (15,872
    )Proceeds from mortgages and notes payable
    
    
    88,972
    
    
    
    167,583Scheduled payments of mortgage principal
    
    
    (3,986
    )
    
    
    (2,214
    )Prepayment of note payable
    
    
    (3,286
    )
    
    
    Deferred financing costs and mortgage deposits, net of deposits refunded
    
    
    (371
    )
    
    
    (592
    )Proceeds from issuance of shares, net of costs of raising capital
    
    
    8,302
    
    
    
    6,703Purchase of treasury stock
    
    
    (2,150
    )
    
    
    (1,509
    )Net cash provided by financing activities
    
    
    60,851
    
    
    
    138,034Change in Cash and Cash Equivalents During the PeriodEffect of exchange rate changes on cash
    
    
    1,210
    
    
    
    77Net decrease in cash and cash equivalents
    
    
    (1,786
    )
    
    
    (6,510
    )Cash and cash equivalents, beginning of period
    
    
    211,759
    
    
    
    464,223Cash and cash equivalents, end of period
    
    $
    209,973
    
    
    $
    457,713
  CPA ® :16  Global 3/31/2008 10-Q 4




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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)  (in thousands, except share and per share amounts)
 Note 1. Business
  Note 2. Basis of Presentation
  Basis of Consolidation
     CPA ® :16  Global 3/31/2008 10-Q 5




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##### Table of Contents



Notes to Consolidated Financial Statements
  Information about International Geographic Areas
  Out-of-Period Adjustment
  Adoption of New Accounting Pronouncements
 SFAS 157
   Fair Value Measurements at Reporting Date Using:Quoted Prices inActive Markets for
    
    
    Significant Other
    
    
    UnobservableIdentical Assets
    
    
    Observable Inputs
    
    
    InputsDescription
    
    March 31, 2008
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Assets:Marketable equity securities
    
    $
    2,345
    
    
    $
    
    
    
    $
    
    
    
    $
    2,345Derivative assets
    
    
    8,166
    
    
    
    
    
    
    
    
    
    
    
    8,166$
    10,511
    
    
    $
    
    
    
    $
    
    
    
    $
    10,511Liabilities:Derivative liabilities
    
    $
    (220
    )
    
    $
    
    
    
    $
    (220
    )
    
    $
    
  CPA ® :16  Global 3/31/2008 10-Q 6




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##### Table of Contents



Notes to Consolidated Financial Statements
 Fair Value Measurements UsingSignificant Unobservable Inputs (Level 3)Marketable
Equity Securities
    
    
    Derivative Assets
    
    
    Total AssetsBeginning balance
    
    $
    2,438
    
    
    $
    6,246
    
    
    $
    8,684Total gains or losses (realized and unrealized):Included in earnings
    
    
    
    
    
    
    1,435
    
    
    
    1,435Included in other comprehensive income
    
    
    (19
    )
    
    
    485
    
    
    
    466Amortization and accretion
    
    
    (74
    )
    
    
    
    
    
    
    (74
    )Purchases, issuances, and settlements
    
    
    
    
    
    
    
    
    
    
    Ending balance
    
    $
    2,345
    
    
    $
    8,166
    
    
    $
    10,511The 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
    
    $
    
    
    
    $
    1,435
    
    
    $
    1,435
  SFAS 159
  Recent Accounting Pronouncements
 SOP 07-1
  FIN 46R-7
  SFAS 141R
  CPA ® :16  Global 3/31/2008 10-Q 7




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Notes to Consolidated Financial Statements
  SFAS 160
  SFAS
161
  Note 3. Agreements and Transactions with Related Parties
  st
  CPA ® :16  Global 3/31/2008 10-Q 8




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##### Table of Contents



Notes to Consolidated Financial Statements
    Note 4. Real Estate
  March 31, 2008
    
    
    December 31, 2007Land
    
    $
    361,936
    
    
    $
    338,639Buildings
    
    
    1,400,633
    
    
    
    1,301,396Less: Accumulated depreciation
    
    
    (52,606
    )
    
    
    (42,578
    )$
    1,709,963
    
    
    $
    1,597,457
  Note 5. Equity Investments in Real Estate
   CPA ® :16  Global 3/31/2008 10-Q 9




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##### Table of Contents



Notes to Consolidated Financial Statements
 Ownership Interest at
    

    Carrying ValueLessee
    
    March 31, 2008
    

    March 31, 2008
    
    
    December 31, 2007Equity Investments in Real Estate:U-Haul Moving Partners, Inc. and Mercury Partners, LP
    
    
    31
    %
    
    $
    35,680
    
    
    $
    34,919Schuler A.G.
    
    
    33
    %
    
    
    27,704
    
    
    
    25,537Hellweg Die
Profi-Baumarkte GmbH & Co. KG (Hellweg 1)
    
    
    25
    %
    
    
    20,070
    
    
    
    18,449Police Prefecture, French Government
    
    
    50
    %
    
    
    15,382
    
    
    
    14,601OBI A.G.
    
    
    25
    %
    
    
    12,524
    
    
    
    13,251TietoEnator Plc
    
    
    40
    %
    
    
    11,019
    
    
    
    10,573Pohjola Non-life Insurance Company
    
    
    40
    %
    
    
    10,931
    
    
    
    10,442Lindenmaier A.G.
    
    
    33
    %
    
    
    6,707
    
    
    
    6,218Thales S.A.
    
    
    35
    %
    
    
    6,494
    
    
    
    5,814Actuant Corporation
    
    
    50
    %
    
    
    2,867
    
    
    
    2,761Consolidated Systems, Inc.
    
    
    40
    %
    
    
    2,222
    
    
    
    2,274151,600
    
    
    
    144,839ADC Equity Arrangement:Soho House Beach House LLC (a)
    
    
    N/A
    
    
    
    36,120
    
    
    
    33,822$
    187,720
    
    
    $
    178,661
 
 (a)
    
    In 2007, we entered into a domestic build-to-suit project that we account for under the
equity method of accounting as it constitutes an ADC equity arrangement. The ADC equity
arrangement provides for a fixed annual interest rate of 5.8% and matures in April 2010. We
are committed to purchase the property at a fixed price upon completion, and the borrower has
little or no equity in the transaction. At March 31, 2008 and December 31, 2007, we have
funded $32,563 and $31,070, respectively of our total commitment of $58,400.  March 31, 2008
    
    
    December 31, 2007Assets
    
    $
    1,472,844
    
    
    $
    1,388,446Liabilities
    
    
    (985,675
    )
    
    
    (924,421
    )Partners and members equity
    
    $
    487,169
    
    
    $
    464,025
 Three months ended March 31,2008
    
    
    2007Revenue
    
    $
    29,939
    
    
    $
    24,615Expenses
    
    
    (21,811
    )
    
    
    (18,745
    )Net income
    
    $
    8,128
    
    
    $
    5,870Our share of income from equity investments in real estate (a)
    
    $
    2,553
    
    
    $
    1,752
 
 (a)
    
    Inclusive of amortization of differences between the fair value of investments acquired and
the carrying value of the ventures net assets as of the date of acquisition. Note 6. Acquisitions of Real Estate-Related Investments
  Real
Estate Acquired
 2008
 CPA ® :16  Global 3/31/2008 10-Q 10




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Notes to Consolidated Financial Statements
 2007 
 Equity Investments in Real Estate Acquired
 2007
 Real Estate Under Construction
 2008
 2007
 Note 7. Intangibles
   March 31, 2008
    
    
    December 31, 2007Lease intangibles:In-place lease
    
    $
    107,124
    
    
    $
    105,912Tenant relationship
    
    
    28,664
    
    
    
    28,311Above-market rent
    
    
    46,635
    
    
    
    45,258Less: accumulated amortization
    
    
    (18,154
    )
    
    
    (15,657
    )$
    164,269
    
    
    $
    163,824Below-market rent
    
    $
    (41,601
    )
    
    $
    (40,897
    )Less: accumulated amortization
    
    
    2,851
    
    
    
    2,491$
    (38,750
    )
    
    $
    (38,406
    )
  Note 8. Commitments and Contingencies
  SEC Investigation
 ®
 CPA ® :16  Global 3/31/2008 10-Q 11




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##### Table of Contents



Notes to Consolidated Financial Statements
 ®
 ® ® ®
 ® ® ® ®
  Other
 Maryland Securities Commission
 ®
 Public Offering
  Note 9. Risk Management and Use of Derivative Financial Instruments
 Risk Management
  CPA ® :16  Global 3/31/2008 10-Q 12




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##### Table of Contents



Notes to Consolidated Financial Statements
 Use of Derivative Financial Instruments
   Interest Rate Swaps
      Embedded Credit Derivative
  Foreign Currency Exchange
  CPA ® :16  Global 3/31/2008 10-Q 13




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##### Table of Contents



Notes to Consolidated Financial Statements
 Concentration of Credit Risk
     Note 10. Income Taxes
     CPA ® :16  Global 3/31/2008 10-Q 14




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##### Table of Contents



Notes to Consolidated Financial Statements
 Note 11. Subsequent Events
  ®
 CPA ® :16  Global 3/31/2008 10-Q 15




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##### 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)
  Business Overview
  Highlights
 Financial Highlights
 
    
    Total revenues for the first quarter of 2008 were $56,258, compared to $24,839 in the
first quarter of 2007. Revenue generated from our 2007 investment activity provided the
majority of this increase. Investment volume exceeded $1 billion in 2007. Our investment
in a transaction in Germany in 2007, the Hellweg 2 transaction (see Results of Operations
below) contributed $16,391 of the increase in revenues, inclusive of minority interest of
$13,960.
    
    Net income for the first quarter of 2008 was $5,812, compared to $11,298 in the first
quarter of 2007, primarily due to a decrease in other interest income
of $4,605 as a result of investing the proceeds of our offering. The Hellweg 2 transaction, which comprised a significant portion of our
2007 investment volume, had a limited impact on our current results because a substantial
portion of this transactions net income is allocated to our minority interest partners.
Despite this limited impact, we expect this transaction to generate significant
property-level cash flow.
    
    Cash flow from operating activities for the first quarter of 2008 was $27,469, compared
to $22,496 in the first quarter of 2007, primarily as a result of our investment activity
during 2007.
    
    Our quarterly cash distribution increased to $0.1637 per share for the first quarter of
2008, or $0.65 per share on an annualized basis.
  Portfolio Highlights
 Investment Activity
 Financing Activity
 Advisor Settlement
 Current Trends
  CPA ® :16  Global 3/31/2008 10-Q 16




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##### Table of Contents



Investment Opportunities
    Three months ended March 31,2008
    
    2007Total investments(a)
    
    $
    57,304
    
    
    $
    158,598Number of investments
    
    
    2
    
    
    
    5Average investment size
    
    $
    28,652
    
    
    $
    31,720Percentage of international investments
    
    
    0
    %
    
    
    20
    %
 
 (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. Mortgage Financing
  Commercial Real Estate
  Corporate Defaults
   CPA ® :16  Global 3/31/2008 10-Q 17




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##### Table of Contents



Competition
  CPI
  Exchange Rate Movements
  Results of Operations
  Three months ended March 31,2008
    
    
    2007Rental income
    
    $
    36,781
    
    
    $
    18,243Interest income from direct financing leases
    
    
    7,081
    
    
    
    6,146$
    43,862
    
    
    $
    24,389
 CPA ® :16  Global 3/31/2008 10-Q 18




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##### Table of Contents



Three months ended March 31,Lessee
    
    2008
    
    
    2007Hellweg Die
Profi-Baumarkte GmbH & Co.  KG (Hellweg 2) (a) (b) (c)
    
    $
    9,349
    
    
    $
    Telcordia Technologies, Inc.
    
    
    2,296
    
    
    
    2,250Berry Plastics Corporation (d)
    
    
    1,671
    
    
    
    Fraikin SAS (b) (d)
    
    
    1,587
    
    
    
    1,311Nordic Cold Storage LLC(d)
    
    
    1,564
    
    
    
    1,000The Talaria Company (Hinckley) (c)
    
    
    1,247
    
    
    
    1,251International Aluminum Corp. and United States Aluminum of Canada Ltd. (b) (d)
    
    
    1,096
    
    
    
    MetoKote Corp., MetoKote Canada Limited and MetoKote de Mexico(b) (e)
    
    
    1,024
    
    
    
    961Huntsman International, LLC
    
    
    1,006
    
    
    
    1,006LFD Manufacturing Ltd., IDS Logistics (Thailand) Ltd. and IDS Manufacturing SDN BHD (b)
    
    
    966
    
    
    
    858Ply Gem Industries, Inc. (b)
    
    
    959
    
    
    
    913Gortz & Schiele GmbH & Co. and Goertz & Schiele Corporation (b) (c) (e)
    
    
    913
    
    
    
    790Performance Fibers GmbH(b)
    
    
    904
    
    
    
    810Holopack International Corp. (d)
    
    
    893
    
    
    
    145TRW Vehicle Safety Systems Inc. (e)
    
    
    892
    
    
    
    892Bobs Discount Furniture, LLC (f)
    
    
    878
    
    
    
    537Foss Manufacturing Company, LLC (g)
    
    
    866
    
    
    
    782Kings Super Markets Inc.
    
    
    845
    
    
    
    835Universal Technical Institute of California, Inc. (d)
    
    
    845
    
    
    
    Finisar Corporation
    
    
    803
    
    
    
    794Dicks Sporting Goods, Inc. (c) (f)
    
    
    784
    
    
    
    673Polestar Petty Ltd. (b)
    
    
    746
    
    
    
    727Willy Voit GmbH & Co. Stanz- und Metallwerk (b) (d) (e)
    
    
    725
    
    
    
    Other (b) (d) (e) (g)
    
    
    11,003
    
    
    
    7,854$
    43,862
    
    
    $
    24,389
 
 (a)
    
    Investment acquired in April 2007 (see Results of Operations below). We also own an equity
investment in other properties leased to this tenant through a 2005 transaction.(b)
    
    Revenue amounts are subject to fluctuations in foreign currency exchange rates.(c)
    
    These revenues are generated in consolidated joint ventures with affiliates and include lease
revenues applicable to minority interests totaling $9,907 and $1,072 for the three months
ended March 31, 2008 and 2007, respectively.(d)
    
    We acquired all or a portion of this investment during 2007.(e)
    
    Tenant operates in the automotive industry. Included in Other are lease revenues from two
additional tenants operating in the automotive industry totaling $852 and $752 for the three
months ended March 31, 2008 and 2007, respectively.(f)
    
    We placed an expansion at this property into service in 2007.(g)
    
    Increase is due to CPI-based rent increase. CPA ® :16  Global 3/31/2008 10-Q 19




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##### Table of Contents



Ownership Interest at
    
    

    Three months ended March 31,Lessee
    
    March 31, 2008
    
    

    2008
    
    
    2007U-Haul Moving Partners, Inc. and Mercury Partners, L.P.
    
    
    31
    %
    
    
    $
    7,136
    
    
    $
    7,136OBI A.G. (a) (b)
    
    
    25
    %
    
    
    
    4,410
    
    
    
    3,550Hellweg Die
Profi-Baumarkte GmbH & Co. KG (Hellweg 1) (a)(c)(d)
    
    
    25
    %
    
    
    
    3,861
    
    
    
    3,326Thales S.A. (a) (d)
    
    
    35
    %
    
    
    
    3,624
    
    
    
    3,132Pohjola Non-life Insurance Company(a) (d)
    
    
    40
    %
    
    
    
    2,352
    
    
    
    1,960TietoEnator Plc (a) (d)
    
    
    40
    %
    
    
    
    2,213
    
    
    
    1,860Police Prefecture, French Government (a) (d)
    
    
    50
    %
    
    
    
    2,018
    
    
    
    1,633Schuler A.G. (a) (e)
    
    
    33
    %
    
    
    
    1,720
    
    
    
    Lindenmaier A.G. (a) (e) (f)
    
    
    33
    %
    
    
    
    666
    
    
    
    Actuant Corporation(a) (d)
    
    
    50
    %
    
    
    
    483
    
    
    
    400Consolidated Systems, Inc.
    
    
    40
    %
    
    
    
    180
    
    
    
    180$
    28,663
    
    
    $
    23,177
 
 (a)
    
    Revenue amounts are subject to fluctuations in foreign currency exchange rates.(b)
    
    We acquired an interest in an additional property leased to this tenant during 2007.(c)
    
    In April 2007, we acquired an interest in additional properties leased to this tenant that we
consolidate.(d)
    
    Increase is due to CPI-based (or equivalent) rent increases as well as fluctuations in
foreign currency exchange rates.(e)
    
    We acquired our interest in this investment during 2007.(f)
    
    Tenant operates in the automotive industry.   Lease Revenues
   CPA ® :16  Global 3/31/2008 10-Q 20




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##### Table of Contents



Interest Income on Notes Receivable
  Other Income
   Depreciation and Amortization
  Property Expenses
  General and Administrative
  Income from Equity Investments in Real Estate
   Other Interest Income
  Minority Interest in Income
   CPA ® :16  Global 3/31/2008 10-Q 21




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##### Table of Contents



Gain on Foreign Currency Transactions, Derivative
Instruments and Other, Net
   Interest Expense
  Provision for Income Taxes
  Net Income
  Financial Condition
 Sources and Uses of Cash During the Period
   Operating Activities
  Investing Activities
 Financing Activities
 CPA ® :16  Global 3/31/2008 10-Q 22




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##### Table of Contents



Summary of Financing
  March 31,2008
    
    
    2007BalanceFixed rate
    
    $
    1,491,015
    
    
    $
    763,503Variable rate (a)
    
    
    35,988
    
    
    
    30,348Total
    
    $
    1,527,003
    
    
    $
    793,851Percent of total debtFixed rate
    
    
    98
    %
    
    
    96
    %Variable rate (a)
    
    
    2
    %
    
    
    4
    %100
    %
    
    
    100
    %Weighted average interest rate at end of periodFixed rate
    
    
    5.4
    %
    
    
    5.9
    %Variable rate (a)
    
    
    4.9
    %
    
    
    5.1
    %
 
 (a)
    
    Included in variable rate debt at March 31, 2008 is (i) $3,995 in variable rate debt which
has been effectively converted to fixed rates through interest rate swap derivative
instruments and (ii) $30,850 in mortgage obligations that currently bear interest at a fixed
rate but which have interest rate reset features which may change the interest rates to then
prevailing market fixed rates at certain points in their term. There are no interest rate
resets scheduled during 2008. Cash Resources
   
    
    The advisors election for 2008 to receive base asset management fees in cash. This change
in allocation of fees, in addition to an increase in asset management fees due to the advisor
in 2008 as a result of our growth in assets, is expected to have a negative impact to cash flow of
approximately $12,000 based on assets owned at March 31, 2008.
    
    The impact from investments we enter into during 2008, the completion of construction at
a hotel property in 2008 and the full year impact of investments entered into in 2007, all of
which we currently expect will have a net positive impact on cash flow.
    
    Scheduled rent increases on several properties during 2008 should result in additional cash
flow.
 Cash Requirements
   CPA ® :16  Global 3/31/2008 10-Q 23




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##### Table of Contents



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

13 years
    
    

35 years
    
    
    5 yearsNon-recourse debt  Principal
    
    $
    1,527,003
    
    
    $
    17,343
    
    
    $
    45,137
    
    
    $
    57,464
    
    
    $
    1,407,059Deferred acquisition fees  Principal
    
    
    14,035
    
    
    
    8,632
    
    
    
    5,403
    
    
    
    
    
    
    
    Interest on borrowings and deferred acquisition
fees (a)
    
    
    814,275
    
    
    
    90,376
    
    
    
    176,097
    
    
    
    170,179
    
    
    
    377,623Build-to-suit commitments (b)
    
    
    331
    
    
    
    331
    
    
    
    
    
    
    
    
    
    
    
    Lending commitments (c)
    
    
    38,092
    
    
    
    38,092
    
    
    
    
    
    
    
    
    
    
    
    Operating and other lease commitments (d)
    
    
    65,764
    
    
    
    1,805
    
    
    
    3,655
    
    
    
    3,699
    
    
    
    56,605$
    2,459,500
    
    
    $
    156,579
    
    
    $
    230,292
    
    
    $
    231,342
    
    
    $
    1,841,287
 
 (a)
    
    Interest on an unhedged variable rate debt obligation was calculated using the applicable
variable interest rate and balance outstanding as of March 31, 2008.(b)
    
    Represents remaining build-to-suit commitment for a project in Columbia, South Carolina.
Estimated total construction costs are currently projected to be $7,000, of which $6,669 has
been funded as of March 31, 2008.(c)
    
    Represents unfunded amounts on an ADC equity arrangement and a commitment to provide a loan
to a developer of a domestic property. The total commitments for the ADC equity arrangement
and the loan are $58,400 and $14,800, respectively, of which $32,563 and $2,545 has been
funded as of March 31, 2008, respectively.(d)
    
    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 minority interest of approximately $11,675.   CPA ® :16  Global 3/31/2008 10-Q 24




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##### Table of Contents



Ownership Interest at
    
    

    
    
    
    
    Total ThirdLessee
    
    March 31, 2008
    
    

    Total Assets
    
    
    Party Debt
    
    
    Maturity DateThales S.A.
    
    
    35
    %
    
      

    $
    131,107
    
    
    $
    89,294
    
    
    
    7/2011U-Haul Moving Partners, Inc. and Mercury
Partners, LP
    
    
    31
    %
    
      

    
    312,601
    
    
    
    170,909
    
    
    
    5/2014Actuant Corporation
    
    
    50
    %
    
      

    
    20,701
    
    
    
    13,765
    
    
    
    5/2014TietoEnator Plc
    
    
    40
    %
    
      

    
    115,580
    
    
    
    86,558
    
    
    
    7/2014Pohjola Non-life Insurance Company
    
    
    40
    %
    
      

    
    125,663
    
    
    
    96,553
    
    
    
    1/2015Hellweg Die Profi-Baumarkte GmbH & Co. KG
 (Hellweg 1) (a)
    
    
    25
    %
    
      

    
    220,051
    
    
    
    129,214
    
    
    
    5/2015Consolidated Systems, Inc.
    
    
    40
    %
    
      

    
    6,935
    
    
    
    4,724
    
    
    
    11/2016Lindenmaier A.G. (b)
    
    
    33
    %
    
      

    
    35,034
    
    
    
    14,200
    
    
    
    10/2017OBI A.G. (b)
    
    
    25
    %
    
      

    
    251,600
    
    
    
    194,524
    
    
    
    3/2018Police Prefecture, French Government
    
    
    50
    %
    
      

    
    135,387
    
    
    
    101,365
    
    
    
    8/2020Schuler A.G. (b)
    
    
    33
    %
    
      

    
    82,112
    
    
    
    
    
    
    
    N/ASoho House Beach House LLC (b) (c)
    
    
    N/A

    
      

    
    36,073
    
    
    
    
    
    
    
    N/A$
    1,472,844
    
    
    $
    901,106
 
 (a)
    
    In accordance with the loan agreement, this tenant has an obligation to meet certain loan
covenants that had not been met as of December 31, 2007. As a result, the lender had retained
rental receipts of $8,501 which it released in May 2008 as a result of the tenants compliance
with these loan covenants. Our interest in this venture had a carrying value of $11,019 at
March 31, 2008. In April 2007, we acquired an interest in the Hellweg 2 transaction which we
consolidate. There is no event of default associated with the Hellweg 2 transaction.(b)
    
    We acquired all or part of our interest in this investment during 2007.(c)
    
    We account for this investment under the equity method of accounting as it constitutes an ADC
equity arrangement (Note 5). Subsequent Events
  ®
 CPA ® :16  Global 3/31/2008 10-Q 25




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##### Table of Contents



ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK  (in thousands)
 Market Risks
   Interest Rate Risk
       2008
    
    2009
    
    2010
    
    2011
    
    2012
    
    Thereafter
    
    Total
    
    Fair valueFixed rate debt
    
    $
    11,692
    
    
    $
    19,001
    
    
    $
    23,065
    
    
    $
    26,296
    
    
    $
    28,859
    
    
    $
    1,382,102
    
    
    $
    1,491,015
    
    
    $
    1,436,680Variable rate debt
    
    $
    1,384
    
    
    $
    453
    
    
    $
    458
    
    
    $
    463
    
    
    $
    468
    
    
    $
    32,762
    
    
    $
    35,988
    
    
    $
    35,939
  CPA ® :16  Global 3/31/2008 10-Q 26




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##### Table of Contents



Foreign Currency Exchange Rate Risk
   
 Item 4T.  Controls and Procedures
 Disclosure Controls and Procedures
   Changes in Internal Control over Financial Reporting
  CPA ® :16  Global 3/31/2008 10-Q 27




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##### 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, 2008, 339,487 shares of common stock were issued to the
advisor as consideration for asset management and performance 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)purchased as part of
    
    of shares that may yet beTotal number of
    
    Average price
    
    publicly announced
    
    purchased under the2008 Period
    
    shares purchased (a)
    
    paid per share
    
    plans or programs (a)
    
    plans or programs (a)January
    
    
    
    
    
    
    
    
    
    
    N/A
    
    
    
    N/AFebruary
    
    
    665
    
    
    $
    9.30
    
    
    
    N/A
    
    
    
    N/AMarch
    
    
    230,453
    
    
    
    9.30
    
    
    
    N/A
    
    
    
    N/ATotal
    
    
    231,118
 
 (a)
    
    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 3/31/2008 10-Q 28




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##### Table of Contents



SIGNATURES
  Corporate Property Associates
16  Global IncorporatedDate 5/15/2008
    By:
    /s/ Mark J. DeCesarisMark J. DeCesarisManaging Director and acting Chief Financial Officer
(acting Principal Financial Officer)Date 5/15/2008
    By:
    /s/ Thomas J. RidingsThomas J. RidingsExecutive Director and Chief Accounting Officer
(Principal Accounting Officer) CPA ® :16  Global 3/31/2008 10-Q 29