##### 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, 2006
 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)
 
 þ o
  o o þ
 o þ




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##### 



CORPORATE PROPERTY ASSOCIATES 16  GLOBAL INCORPORATED
 INDEX
 PAGENO.PART I - FINANCIAL INFORMATIONItem 1.
    
    - Financial Statements*Consolidated Balance Sheets as of March 31, 2006 and December 31, 2005
    
    2Consolidated Statements of Income for the three months ended March 31, 2006 and 2005
    
    3Consolidated
Statements of Comprehensive Income for the three months ended March 31, 2006 and 2005
    
    3Consolidated Statement of Shareholders Equity for the three months ended March 31, 2006
    
    4Consolidated Statements of Cash Flows for the three months ended March 31, 2006 and 2005
    
    5Notes to Consolidated Financial Statements
    
    6Item 2.
    
    - Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    12Item 3.
    
    - Quantitative and Qualitative Disclosures About Market Risk
    
    19Item 4.
    
    - Controls and Procedures
    
    20PART II - OTHER INFORMATIONItem 2.
    
    - Unregistered Sales of Equity Securities and Use of Proceeds
    
    21Item 6.
    
    - Exhibits
    
    21Signatures
    
    
    
    22EX-31.1: CERTIFICATIONEX-31.2: CERTIFICATIONEX-32: CERTIFICATION
  
 *
    
    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
   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)
 December 31, 2005March 31, 2006
    
    
    (NOTE)ASSETSReal estate, net
    
    $
    412,428
    
    
    $
    386,615Net investment in direct financing leases
    
    
    153,800
    
    
    
    152,772Equity investments
    
    
    108,117
    
    
    
    97,179Real estate under construction
    
    
    25,535
    
    
    
    15,026Mortgage notes receivable
    
    
    29,771
    
    
    
    29,798Cash and cash equivalents
    
    
    116,680
    
    
    
    155,374Short-term investments
    
    
    2,084
    
    
    
    1,698Marketable securities
    
    
    2,904
    
    
    
    2,996Funds in escrow
    
    
    11,574
    
    
    
    6,377Intangible assets, net
    
    
    73,971
    
    
    
    66,589Due from affiliates
    
    
    
    
    
    
    590Deferred offering costs
    
    
    5,804
    
    
    
    4,028Other assets, net
    
    
    10,053
    
    
    
    10,607Total assets
    
    $
    952,721
    
    
    $
    929,649LIABILITIES AND SHAREHOLDERS EQUITYLiabilities:Limited recourse mortgage notes payable
    
    $
    369,173
    
    
    $
    358,370Accrued interest
    
    
    2,255
    
    
    
    2,330Prepaid and deferred rental income and security deposits
    
    
    20,390
    
    
    
    18,548Due to affiliates
    
    
    13,848
    
    
    
    9,475Distributions payable
    
    
    9,052
    
    
    
    8,926Deferred acquisition fees payable to affiliate
    
    
    19,760
    
    
    
    17,708Accounts payable, accrued expenses and other liabilities
    
    
    12,140
    
    
    
    10,163Total liabilities
    
    
    446,618
    
    
    
    425,520Minority interest in consolidated entities
    
    
    17,099
    
    
    
    17,134Commitments and contingencies (Note 9)Shareholders equity:Common stock, $.001 par value; 110,000,000
shares authorized; 57,749,522 and 57,268,850
shares issued and outstanding at March 31,
2006 and December 31, 2005
    
    
    58
    
    
    
    57Additional paid-in capital
    
    
    518,749
    
    
    
    514,014Distributions in excess of accumulated earnings
    
    
    (26,468
    )
    
    
    (22,416
    )Accumulated other comprehensive loss
    
    
    (778
    )
    
    
    (3,148
    )491,561
    
    
    
    488,507Less, treasury stock at cost, 274,919 and
162,564 shares at March 31, 2006 and December
31, 2005
    
    
    (2,557
    )
    
    
    (1,512
    )Total shareholders equity
    
    
    489,004
    
    
    
    486,995Total liabilities and shareholders equity
    
    $
    952,721
    
    
    $
    929,649
   2




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CORPORATE PROPERTY ASSOCIATES 16  GLOBAL INCORPORATED
 
 CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
 (in thousands except share and per share amounts)
 Three months ended March 31,2006
    
    
    2005REVENUES:Rental income
    
    $
    10,355
    
    
    $
    3,887Interest income from direct financing leases
    
    
    3,152
    
    
    
    1,927Interest income on mortgage receivable
    
    
    728
    
    
    
    563Other operating income
    
    
    88
    
    
    
    6614,323
    
    
    
    6,443OPERATING EXPENSES:Depreciation and amortization
    
    
    (2,633
    )
    
    
    (892
    )Property expenses
    
    
    (2,812
    )
    
    
    (1,369
    )General and administrative
    
    
    (1,307
    )
    
    
    (908
    )(6,752
    )
    
    
    (3,169
    )OTHER INCOME AND EXPENSES:Income from equity investments
    
    
    1,703
    
    
    
    1,277Other interest income
    
    
    1,461
    
    
    
    1,501Minority interest in income
    
    
    (475
    )
    
    
    Gain
(loss) on foreign currency transactions and derivative instruments, net
    
    
    26
    
    
    
    (166
    )Interest expense
    
    
    (5,286
    )
    
    
    (2,042
    )(2,571
    )
    
    
    570NET INCOME
    
    $
    5,000
    
    
    $
    3,844BASIC EARNINGS PER SHARE
    
    $
    .09
    
    
    $
    .07DISTRIBUTIONS DECLARED PER SHARE
    
    $
    .1575
    
    
    $
    .1250WEIGHTED AVERAGE SHARES OUTSTANDING  BASIC
    
    
    57,485,161
    
    
    
    55,447,733
  
   Three months ended March 31,2006
    
    
    2005Net income
    
    $
    5,000
    
    
    $
    3,844Other comprehensive income:Unrealized depreciation of marketable securities
    
    
    (26
    )
    
    
    Change in foreign currency translation adjustment
    
    
    2,022
    
    
    
    (2,759
    )Unrealized gain on derivative instruments
    
    
    374
    
    
    
    2,370
    
    
    
    (2,759
    )Comprehensive income
    
    $
    7,370
    
    
    $
    1,085
  3




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CORPORATE PROPERTY ASSOCIATES 16  GLOBAL INCORPORATED
 
 CONSOLIDATED STATEMENT OF SHAREHOLDERS EQUITY
 For the three months
ended March 31, 2006
(In thousands except share and per share amounts)
 Distributions in
    
    
    AccumulatedAdditional
    
    
    Excess of
    
    
    OtherCommon
    
    
    Paid-In
    
    
    Accumulated
    
    
    Comprehensive
    
    
    TreasuryStock
    
    
    Capital
    
    
    Earnings
    
    
    Loss
    
    
    Stock
    
    
    TotalBalance at December 31, 2005
    
    $
    57
    
    
    $
    514,014
    
    
    $
    (22,416
    )
    
    $
    (3,148
    )
    
    $
    (1,512
    )
    
    $
    486,995480,672 shares issued $.001 par, at
$10 per share, net of offering
costs
    
    
    1
    
    
    
    4,735
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,736Distributions declared
    
    
    
    
    
    
    
    
    
    
    (9,052
    )
    
    
    
    
    
    
    
    
    
    
    (9,052
    )Net income
    
    
    
    
    
    
    
    
    
    
    5,000
    
    
    
    
    
    
    
    
    
    
    
    5,000Change in other comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,370
    
    
    
    
    
    
    
    2,370Repurchase of 112,355 shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,045
    )
    
    
    (1,045
    )Balance at March 31, 2006
    
    $
    58
    
    
    $
    518,749
    
    
    $
    (26,468
    )
    
    $
    (778
    )
    
    $
    (2,557
    )
    
    $
    489,004
  4




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CORPORATE PROPERTY ASSOCIATES 16  GLOBAL INCORPORATED
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 (in thousands)
 Three months ended March 31,2006
    
    
    2005CASH FLOWS FROM OPERATING ACTIVITIES:Net income
    
    $
    5,000
    
    
    $
    3,844Adjustments to reconcile net income to net cash provided by operating activities:Depreciation
and amortization including intangible assets and deferred financing costs
    
    
    2,683
    
    
    
    903Realized loss (gain) on foreign currency transactions, net
    
    
    4
    
    
    
    (35
    )Unrealized (gain) loss on foreign currency transactions, net
    
    
    (30
    )
    
    
    129Unrealized loss on derivative instrument
    
    
    
    
    
    
    72Equity income in excess of distributions received
    
    
    (408
    )
    
    
    (199
    )Issuance of shares to affiliate in satisfaction of fees due
    
    
    773
    
    
    
    395Minority interest in income
    
    
    475
    
    
    
    Straight-line rent adjustments and amortization of rent related intangibles
    
    
    (531
    )
    
    
    (232
    )(Decrease) increase in accrued interest
    
    
    (88
    )
    
    
    669Increase (decrease) in due to affiliates (a)
    
    
    2,595
    
    
    
    (1,707
    )Increase in accounts payable, accrued expenses and other liabilities (a)
    
    
    1,457
    
    
    
    338Increase in prepaid and deferred rental income and security deposits
    
    
    234
    
    
    
    1,671Decrease in funds held in escrow
    
    
    73
    
    
    
    745Net change in other operating assets and liabilities
    
    
    (2,250
    )
    
    
    557Net cash provided by operating activities
    
    
    9,987
    
    
    
    7,150CASH FLOWS FROM INVESTING ACTIVITIES:Distributions received from equity investments in excess of equity income
    
    
    915
    
    
    
    387Contributions to equity investments
    
    
    (10,088
    )
    
    
    (76
    )Purchase of short term investments
    
    
    
    
    
    
    (5,616
    )Purchases of securities
    
    
    
    
    
    
    (17,625
    )Proceeds from sale of securities
    
    
    
    
    
    
    82,525Purchase of mortgage note receivable
    
    
    
    
    
    
    (12,778
    )Funds held in escrow for future acquisition and construction
    
    
    (7,957
    )
    
    
    (4,753
    )Release of funds held in escrow for acquisition and construction of real estate
    
    
    2,832
    
    
    
    12,371Receipt of principal payment of mortgage note receivable
    
    
    66
    
    
    
    VAT taxes recovered from purchase of real estate
    
    
    4,008
    
    
    
    Acquisition of real estate and equity investments (b)
    
    
    (40,935
    )
    
    
    (230,039
    )Net cash used in investing activities
    
    
    (51,159
    )
    
    
    (175,604
    )CASH FLOWS FROM FINANCING ACTIVITIES:Proceeds from issuance of stock, net of costs of raising capital
    
    
    3,963
    
    
    
    38,360Proceeds from mortgages
    
    
    10,614
    
    
    
    121,540Payment of financing costs and mortgage financing deposits
    
    
    
    
    
    
    (3
    )Deferred financing costs and mortgage deposits, net of deposits refunded
    
    
    (358
    )
    
    
    Distributions paid to minority partners
    
    
    (510
    )
    
    
    Scheduled payments of mortgage principal
    
    
    (1,314
    )
    
    
    (391
    )Distributions paid
    
    
    (8,926
    )
    
    
    (5,348
    )Purchase of treasury stock
    
    
    (1,045
    )
    
    
    Net cash provided by financing activities
    
    
    2,424
    
    
    
    154,158Effect of exchange rate changes on cash
    
    
    54
    
    
    
    (62
    )Net (decrease) increase in cash and cash equivalents
    
    
    (38,694
    )
    
    
    (14,358
    )Cash and cash equivalents, beginning of period
    
    
    155,374
    
    
    
    217,310Cash and cash equivalents, end of period
    
    $
    116,680
    
    
    $
    202,952
 
 (a)
    
    Changes in due to affiliates and accounts payable, accrued expenses and other liabilities excludes amounts
related to the raising of capital (financing activities) pursuant to the Companys initial
public offering. At March 31, 2006 and 2005, the amount due to the Companys advisor for such
costs were $5,804 and $2,918, respectively. The financial statement
caption also excludes deferred acquisition fees payable related to
the acquisition of real estate (investing activities).(b)
    
    The cost basis of real estate investments acquired during the three months ended March 31,
2006 and 2005 also includes deferred acquisition fees payable of $2,052 and $4,162,
respectively.  5




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CORPORATE PROPERTY ASSOCIATES 16  GLOBAL INCORPORATED
 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 (in thousands except share and per share amounts)
 NOTE 1. Business
 
 NOTE 2. Basis of Presentation
  Principles of Consolidation
   Information about Geographic Areas
  Reclassifications
  6




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CORPORATE PROPERTY ASSOCIATES 16  GLOBAL INCORPORATED
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(in thousands except share and per share amounts)
 NOTE 3. Organization and Offerings
   NOTE 4. Transactions with Related Parties
    7




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CORPORATE PROPERTY ASSOCIATES 16  GLOBAL INCORPORATED
 NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(in thousands except share and per share amounts)
  NOTE 5. Real Estate
  March 31, 2006
    
    
    December 31, 2005Cost
    
    $
    419,956
    
    
    $
    392,210Less: Accumulated depreciation
    
    
    (7,528
    )
    
    
    (5,595
    )$
    412,428
    
    
    $
    386,615
 NOTE 6. Equity Investments
 ® ®
  March 31, 2006
    
    
    December 31, 2005Assets (primarily real estate)
    
    $
    319,367
    
    
    $
    323,364Liabilities (primarily mortgage notes payable)
    
    
    (193,742
    )
    
    
    (196,752
    )Partners and members equity
    
    $
    125,625
    
    
    $
    126,612Companys share of equity investees net assets
    
    $
    38,874
    
    
    $
    39,182
 Three months ended March 31,2006
    
    
    2005Revenues (primarily rental income)
    
    $
    7,141
    
    
    $
    7,135Expenses (primarily interest on mortgages and depreciation)
    
    
    (4,692
    )
    
    
    (4,598
    )Net income
    
    $
    2,449
    
    
    $
    2,537Companys share of net income from equity investments
    
    $
    748
    
    
    $
    775
   March 31, 2006
    
    
    December 31, 2005Assets (primarily real estate)
    
    $
    782,503
    
    
    $
    575,944Liabilities (primarily mortgage notes payable)
    
    
    (582,334
    )
    
    
    (419,690
    )Partners and members equity
    
    $
    200,169
    
    
    $
    156,254Companys share of equity investees net assets
    
    $
    69,243
    
    
    $
    57,997
 8




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CORPORATE PROPERTY ASSOCIATES 16  GLOBAL INCORPORATED
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(in thousands except share and per share amounts)
 Three months ended March 31,2006
    
    
    2005Revenues (primarily rental income and interest income from direct financing leases)
    
    $
    11,261
    
    
    $
    6,954Expenses (primarily interest on mortgages and depreciation)
    
    
    (8,080
    )
    
    
    (5,721
    )Net income
    
    $
    3,181
    
    
    $
    1,233Companys share of net income from equity investments
    
    $
    955
    
    
    $
    502
 NOTE
7. Acquisitions of Real Estate-Related Investments
 Real Estate Acquired
 2006
 2005
 Equity Investments Acquired
 2006 ®
 2005 ®
 Mortgage Notes Receivable Acquired
 2005
 Real Estate Under Construction
 2006
 9




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CORPORATE PROPERTY ASSOCIATES 16  GLOBAL INCORPORATED
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(in thousands except share and per share amounts)
 NOTE 8. Intangibles
   March 31, 2006
    
    
    December 31, 2005Lease intangiblesIn-place lease
    
    $
    47,957
    
    
    $
    43,481Tenant relationship
    
    
    13,836
    
    
    
    12,808Above-market rent
    
    
    15,948
    
    
    
    13,150Less: accumulated amortization
    
    
    (3,770
    )
    
    
    (2,850
    )$
    73,971
    
    
    $
    66,589Below-market rent
    
    $
    (13,602
    )
    
    $
    (11,866
    )Less: accumulated amortization
    
    
    575
    
    
    
    420$
    (13,027
    )
    
    $
    (11,446
    )
  NOTE 9. Commitments and Contingencies
   ® ® ® ® ®
 ® ® ® ® ®
  10




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CORPORATE PROPERTY ASSOCIATES 16  GLOBAL INCORPORATED
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(in thousands except share and per share amounts)
   NOTE
10. Subsequent Events
   11




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CORPORATE PROPERTY ASSOCIATES 16  GLOBAL INCORPORATED
 
 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
         12




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CORPORATE PROPERTY ASSOCIATES 16  GLOBAL INCORPORATED
 ITEM 2.  MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
(in thousands except share and per share amounts)
      How Management Evaluates Results of Operations
   Three months ended March 31,2006
    
    
    2005Rental income
    
    $
    10,355
    
    
    $
    3,887Interest income from direct financing leases
    
    
    3,152
    
    
    
    1,927$
    13,507
    
    
    $
    5,814
  Three months ended March 31,2006
    
    
    2005Telcordia Technologies, Inc. (a)
    
    $
    2,206
    
    
    $
    411The Talaria Company (Hinckley) (a) (b)
    
    
    1,254
    
    
    
    Huntsman International, LLC (a)
    
    
    1,006
    
    
    
    MetoKote Corporation, MetoKote Canada Limited and MetoKote de Mexico (a) (c)
    
    
    935
    
    
    
    
 13




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CORPORATE PROPERTY ASSOCIATES 16  GLOBAL INCORPORATED
 ITEM 2.  MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
(in thousands except share and per share amounts)
 Three months ended March 31,2006
    
    
    2005Ply Gem Industries, Inc. (c)
    
    
    885
    
    
    
    855Finisar Corporation (a)
    
    
    810
    
    
    
    511Foss Manufacturing Company, Inc. (d)
    
    
    799
    
    
    
    799Polestar Petty Ltd. (c)
    
    
    642
    
    
    
    682LFD Manufacturing Limited and IDS Logistics (Thailand) Limited (a) (c)
    
    
    573
    
    
    
    323Murray International Metals, Limited (a) (c)
    
    
    496
    
    
    
    HMS Healthcare, Inc. (a)
    
    
    426
    
    
    
    443Plantagen Finland Oy and Plantagen Sverige AB (c)
    
    
    402
    
    
    
    446Xpedite Systems, Inc.
    
    
    398
    
    
    
    398Precise Technology Group, Inc. (a)
    
    
    362
    
    
    
    297Castle Rock Industries, Inc.
    
    
    338
    
    
    
    328Dicks Sporting Goods, Inc. (a) (b)
    
    
    336
    
    
    
    Bobs Discount Furniture, LLC (a)
    
    
    240
    
    
    
    Career Education Corp. (a)
    
    
    227
    
    
    
    John McGavigan Limited(a) (c)
    
    
    215
    
    
    
    John Nurminen Oy (a) (c)
    
    
    204
    
    
    
    Other (a) (c) (e)
    
    
    753
    
    
    
    321$
    13,507
    
    
    $
    5,814
 
 (a)
    
    We acquired or placed into service our interest in this investment during 2005.(b)
    
    Includes lease revenues applicable to minority interests totaling $712 in 2006.(c)
    
    Revenue amounts are subject to fluctuations in foreign currency exchange rates.(d)
    
    Foss filed for Chapter 11 bankruptcy protection in September 2005 and subsequently affirmed
its lease in May 2006.(e)
    
    We acquired or placed into service our interest in this investment during 2006.  Three months ended March 31,2006
    
    
    2005U-Haul Moving Partners, Inc. and Mercury Partners, LP
    
    $
    2,196
    
    
    $
    2,196Thales S.A.(a)
    
    
    942
    
    
    
    1,021Hellweg Die Profi-Baumarkte GmbH & Co. KG (a) (b)
    
    
    759
    
    
    
    Police Prefecture, French Government (a) (b)
    
    
    746
    
    
    
    Pohjola Non-life Insurance Company (a) (b)
    
    
    730
    
    
    
    775TietoEnator Plc (a)
    
    
    683
    
    
    
    736Actuant Corporation (a)
    
    
    178
    
    
    
    193OBI A.G. (a) (c)
    
    
    8
    
    
    
    $
    6,242
    
    
    $
    4,921
 
 (a)
    
    Revenue amounts are subject to fluctuations in foreign currency exchange rates.(b)
    
    We acquired or placed into service our interest in this investment during 2005.(c)
    
    We acquired or placed into service our interest in this investment during 2006. RESULTS OF OPERATIONS
  14




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CORPORATE PROPERTY ASSOCIATES 16  GLOBAL INCORPORATED
 ITEM 2.  MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
(in thousands except share and per share amounts)
 Lease Revenues
   Interest Income on Mortgage Receivable
  Depreciation and Amortization
  Property Expenses
   General and Administrative
   15




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CORPORATE PROPERTY ASSOCIATES 16  GLOBAL INCORPORATED
 ITEM 2.  MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
(in thousands except share and per share amounts)
 Income from Equity Investments
   Minority Interest in Income
  ®
 Gain
(Loss) on Foreign Currency Transactions and Derivative Instruments, Net
  Interest Expense
  Net Income
  FINANCIAL CONDITION
 Uses of Cash During the Period
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CORPORATE PROPERTY ASSOCIATES 16  GLOBAL INCORPORATED
 ITEM 2.  MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
(in thousands except share and per share amounts)
   Cash Resources
   
    
    The impact of investments completed during 2006, the full year impact of investments completed in 2005 and the expected
completion of a build-to-suit project in 2006, all of which we expect will have a positive impact on cash flow.
    
    The advisors election in 2006 to continue to receive asset management and performance fees in restricted shares.
    
    Scheduled rent increases on several properties during 2006 should result in additional cash from operations.
 Cash Requirements
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CORPORATE PROPERTY ASSOCIATES 16  GLOBAL INCORPORATED
 ITEM 2.  MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
(in thousands except share and per share amounts)
 Aggregate Contractual Agreements
  Less thanTotal
    
    
    1 year
    
    
    1-3 years
    
    
    3-5 years
    
    
    More than 5 yearsMortgage notes payable  Principal
    
    $
    369,173
    
    
    $
    7,586
    
    
    $
    16,235
    
    
    $
    18,842
    
    
    $
    326,510Mortgage notes payable  Interest
    
    
    234,676
    
    
    
    21,780
    
    
    
    42,318
    
    
    
    40,172
    
    
    
    130,406Deferred acquisition fees due to affiliate  Principal
    
    
    19,760
    
    
    
    
    
    
    
    19,076
    
    
    
    684
    
    
    
    Deferred acquisition fees due to affiliate  Interest
    
    
    2,897
    
    
    
    
    
    
    
    2,863
    
    
    
    34
    
    
    
    Build-to-suit commitments (1)
    
    
    61,598
    
    
    
    61,598
    
    
    
    
    
    
    
    
    
    
    
    Operating leases (2)
    
    
    2,871
    
    
    
    150
    
    
    
    542
    
    
    
    552
    
    
    
    1,627$
    690,975
    
    
    $
    91,114
    
    
    $
    81,034
    
    
    $
    60,284
    
    
    $
    458,543
 
 (1)
    
    Represents remaining build-to-suit commitments for four projects. Commitments include a
project in Blairsville, Pennsylvania where estimated total construction costs are currently
projected to total approximately $25,152, of which $2,502 was funded as of March 31, 2006; a
project in Plainfield, Indiana where estimated total construction costs are currently
projected to total approximately $17,600 of which $2,812 was funded as of March 31, 2006; a
project in Norwich, Connecticut where estimated total construction costs are currently
projected to total up to approximately $12,500, of which $8,890 has been funded as of March
31, 2006; and a project in Laramie, Wyoming, where estimated total construction costs are
currently projected to total approximately $24,731 of which $4,181 was funded as of March 31,
2006.(2)
    
    Operating lease obligations consist primarily of our share of 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.   SUBSEQUENT
EVENTS
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CORPORATE PROPERTY ASSOCIATES 16  GLOBAL INCORPORATED
 
 ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
 (in thousands)
  Interest Rate Risk
   2006
    
    2007
    
    2008
    
    2009
    
    2010
    
    Thereafter
    
    Total
    
    Fair ValueFixed rate debt
    
    $
    5,958
    
    
    $
    7,277
    
    
    $
    8,346
    
    
    $
    8,951
    
    
    $
    9,538
    
    
    $
    329,103
    
    
    $
    369,173
    
    
    $
    358,169Weighted average interest rate
    
    
    5.92
    %
    
    
    5.92
    %
    
    
    5.93
    %
    
    
    5.93
    %
    
    
    5.93
    %
    
    
    5.86
    %
   Foreign Currency Exchange Rate Risk
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CORPORATE PROPERTY ASSOCIATES 16  GLOBAL INCORPORATED
 
 ITEM 4.  CONTROLS AND PROCEDURES
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CORPORATE PROPERTY ASSOCIATES 16  GLOBAL INCORPORATED
 
 PART II
 
 ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
 (a)
    
    For the quarter ended March 31, 2006, 77,331 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(or ApproximateTotal number of
    
    
    Dollar Value) ofshares purchased
    
    
    Shares that mayas part of publicly
    
    
    yet be PurchasedTotal number of
    
    
    Average price
    
    
    announced
    
    
    Under the PlansPeriod
    
    shares purchased (1)
    
    
    paid per share
    
    
    plans or programs (1)
    
    
    or Programs(1)January 1, 2006 - January 31, 2006
    
    
    
    
    
    
    
    
    
    
    N/A
    
    
    
    N/AFebruary 1, 2006 - February 28, 2006
    
    
    
    
    
    
    
    
    
    
    N/A
    
    
    
    N/AMarch 1, 2006 - March 31, 2006
    
    
    112,355
    
    
    
    9.30
    
    
    
    N/A
    
    
    
    N/ATotal
    
    
    112,355
 
 (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 Distribution Reinvestment and
Share 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
 31.1
    
    Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 200231.2
    
    Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 200232
    
    Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section
906 of the Sarbanes-Oxley Act of 2002
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CORPORATE PROPERTY ASSOCIATES 16  GLOBAL INCORPORATED
 
 SIGNATURES
  CORPORATE PROPERTY ASSOCIATES 16-GLOBAL INCORPORATED5/15/2006
    Date
    
    By:
    
    /s/ Mark J. DeCesaris

Mark J. DeCesarisManaging Director and acting Chief Financial Officer(acting Principal Financial Officer)5/15/2006
    
    By:
    
    /s/ Claude FernandezDate
    
    
    
    Claude FernandezManaging Director and Chief Accounting Officer(Principal Accounting Officer)
 22