##### 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 0-27496
 CRONOS GLOBAL INCOME FUND XVI, L.P.
  California
    
    94-3230380(State or other jurisdiction of
    
    (I.R.S. Employerincorporation or organization)
    
    Identification No.)
 One Front Street, Suite 925, San Francisco, California
    
    94111(Address of principal executive offices)
    
    (Zip Code)
 
 þ o
  Large accelerated filer oAccelerated filer oNon-accelerated filer o(Do not check if a smaller reporting company)Smaller reporting company þ o þ




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CRONOS GLOBAL INCOME FUND XVI, L.P.
 Report on Form 10-Q for the Quarterly Period
Ended March 31, 2008
 TABLE OF CONTENTS
 PAGEPART I  FINANCIAL INFORMATION
    
    
    1Item 1. Financial Statements
    
    
    1Condensed Balance Sheets  March 31, 2008 and December 31, 2007 (unaudited)
    
    
    2Condensed Statements of Income for the three months ended March 31, 2008 and 2007 (unaudited)
    
    
    3Condensed Statements of Cash Flows for the three months ended March 31, 2008 and 2007 (unaudited)
    
    
    4Notes to the Condensed Financial Statements (unaudited)
    
    
    5Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    11Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    15Item 4. Controls and Procedures
    
    
    15Item 4T. Controls and Procedures
    
    
    15PART II  OTHER INFORMATION
    
    
    16Item 1. Legal Proceedings
    
    
    16Item 1A. Risk Factors
    
    
    16Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    16Item 3. Defaults Upon Senior Securities
    
    
    16Item 4. Submissions of Matters to a Vote of Securities Holders
    
    
    16Item 5. Other Information
    
    
    16Item 6. Exhibits
    
    
    16EXHIBIT 31.1EXHIBIT 31.2EXHIBIT 32




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PART I  FINANCIAL INFORMATION
 
 Item 1.
    
    Financial StatementsPresented herein are Cronos Global Income Fund XVI, L.P.s (the Partnership) condensed
balance sheets as of March 31, 2008 and December 31, 2007, condensed statements of income
for the three months ended March 31, 2008 and 2007, and condensed statements of cash flows
for the three months ended March 31, 2008 and 2007, (collectively the Financial
Statements) prepared by the Partnership without audit, pursuant to the rules and
regulations of the Securities and Exchange Commission (SEC). Certain information and
footnote disclosures normally included in financial statements prepared in accordance with
accounting principles generally accepted in the United States of America have been
condensed or omitted pursuant to such rules and regulations, although the Partnership
believes that the disclosures are adequate to make the information presented not
misleading. It is suggested that these Financial Statements should be read in conjunction
with the financial statements and the notes thereto included in the Partnerships December
31, 2007 Annual Report on Form 10-K. These Financial Statements reflect, in the opinion of
the Partnership and Cronos Capital Corp. (CCC), the general partner, all adjustments
(consisting only of normal recurring adjustments) necessary to present fairly the results
for the interim periods. The statements of income for such interim periods are not
necessarily indicative of the results for the full year.The information in this Quarterly Report on Form 10-Q contains certain forward-looking
statements within the meaning of the securities laws. These forward-looking statements
reflect the current view of the Partnership with respect to future events and financial
performance and are subject to a number of risks and uncertainties, many of which are
beyond the Partnerships control. All statements, other than statements of historical
facts included in this report, including the statements under Managements Discussion and
Analysis of Financial Condition and Results of Operations, regarding the Partnerships
strategy, future operations, financial position, estimated revenues, projected costs,
prospects, plans and objectives of the Partnership are forward-looking statements. When
used in this report, the words would, believe, anticipate, intend, estimate,
expect, project, and similar expressions are intended to identify forward-looking
statements, although not all forward-looking statements contain these identifying words.
All forward-looking statements speak only as of the date of this report. The Partnership
does not undertake any obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events or otherwise. Although
the Partnership believes that its plans, intentions and expectations reflected in or
suggested by the forward-looking statements made in this report are reasonable, the
Partnership can give no assurance that these plans, intentions or expectations will be
achieved. Future economic and industry trends that could potentially impact revenues and
profitability are difficult to predict.
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CRONOS GLOBAL INCOME FUND XVI, L.P.
 
 Condensed Balance Sheets
 (Unaudited)
 March 31,
    
    
    December 31,2008
    
    
    2007AssetsCurrent assets:Cash and cash equivalents, includes $757,081 at March 31, 2008
and $816,160 at December 31, 2007 in interest-bearing accounts
    
    $
    772,081
    
    
    $
    831,160Net lease receivables due from Leasing Agent
    
    
    470,100
    
    
    
    390,560Total current assets
    
    
    1,242,181
    
    
    
    1,221,720Container rental equipment, at cost
    
    
    21,677,025
    
    
    
    22,530,005Less accumulated depreciation
    
    
    (14,270,908
    )
    
    
    (14,533,680
    )Net container rental equipment
    
    
    7,406,117
    
    
    
    7,996,325Total assets
    
    $
    8,648,298
    
    
    $
    9,218,045Partners capitalPartners capital (deficit):General partner
    
    $
    (19,398
    )
    
    $
    (24,596
    )Limited partners
    
    
    8,667,696
    
    
    
    9,242,641Total partners capital
    
    $
    8,648,298
    
    
    $
    9,218,045
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CRONOS GLOBAL INCOME FUND XVI, L.P.
 
 Condensed Statements of Income
 (Unaudited)
 Three Months EndedMarch 31,
    
    
    March 31,2008
    
    
    2007Net lease revenue from Leasing Agent
    
    $
    444,110
    
    
    $
    449,559Other operating income (expenses):Depreciation
    
    
    (333,104
    )
    
    
    (392,727
    )Other general and administrative expenses
    
    
    (38,075
    )
    
    
    (27,270
    )Net gain on disposal of equipment
    
    
    11,179
    
    
    
    5,132(360,000
    )
    
    
    (414,865
    )Income from operations
    
    
    84,110
    
    
    
    34,694Other income:Interest income
    
    
    3,033
    
    
    
    13,370Net income
    
    $
    87,143
    
    
    $
    48,064Allocation of net income:General partner
    
    $
    28,887
    
    
    $
    26,121Limited partners
    
    
    58,256
    
    
    
    21,943$
    87,143
    
    
    $
    48,064Limited partners per unit share of net income
    
    $
    0.04
    
    
    $
    0.01
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CRONOS GLOBAL INCOME FUND XVI, L.P.
 
 Condensed Statements of Cash Flows
 (Unaudited)
 Three Months EndedMarch 31,
    
    
    March 31,2008
    
    
    2007Net cash provided by operating activities
    
    $
    371,893
    
    
    $
    508,532Cash flows from investing activities:Proceeds from sale of container rental equipment
    
    
    225,919
    
    
    
    252,756Cash flows from financing activities:Distributions to general partner
    
    
    (23,689
    )
    
    
    (30,470
    )Distributions to limited partners
    
    
    (633,202
    )
    
    
    (939,805
    )Net cash used in financing activities
    
    
    (656,891
    )
    
    
    (970,275
    )Net decrease in cash and cash equivalents
    
    
    (59,079
    )
    
    
    (208,987
    )Cash and cash equivalents at the beginning of the period
    
    
    831,160
    
    
    
    1,203,374Cash and cash equivalents at the end of the period
    
    $
    772,081
    
    
    $
    994,387
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CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Unaudited Condensed Financial Statements
 (1)
    
    Summary of Significant Accounting Policies
 (a)
    
    Nature of OperationsCronos Global Income Fund XVI, L.P. (the Partnership) is a limited partnership that was
organized under the laws of the State of California on September 1, 1995, for the purpose
of owning and leasing dry and specialized marine cargo containers to ocean carriers. The
Partnership commenced operations on March 29, 1996, when the minimum subscription proceeds
of $2,000,000 were received from over 100 subscribers (excluding from such count,
Pennsylvania residents, CCC, and all affiliates of CCC). On February 3, 1997, CCC
suspended the offer and sale of units in the Partnership. The offering terminated on
December 27, 1997, at which time 1,599,667 limited partnership units had been sold. The
Partnership shall continue until December 31, 2015, unless terminated sooner upon the
occurrence of certain events.Cronos Capital Corp. (CCC), the general partner and its affiliate, Cronos Containers
Limited (the Leasing Agent), manage the business of the Partnership. CCC and the
Leasing Agent also manage the container leasing business for other partnerships affiliated
with CCC.The Partnership has entered into its 13th year of operations and is in its liquidation
phase, wherein CCC focuses its attention on the retirement of the remaining equipment in
the Partnerships container fleet. At March 31, 2008, approximately 73% of the original
equipment remained in the Partnerships fleet. CCC will take several factors into
consideration when examining options for the timing of the disposal of the containers.
These factors include the impact of a diminishing fleet size and current market conditions
on the level of gross lease revenue, and the level of fixed operating costs relative to
this revenue. CCC will also consider the impact of a projected increase in expenses
associated with the introduction of the additional reporting and compliance requirements
of Section 404 of the Sarbanes Oxley Act of 2002. These additional costs, depending on
their materiality, may reduce the Partnerships results from operations and therefore
negatively affect future distributions to the Limited Partners. The Partnership is
required to be in compliance with Section 404 for the year ending December 31, 2008,
however, the SEC has proposed an extension of auditor attestation to fiscal years ending
on or after December 15, 2009.The Partnerships operations are subject to the fluctuations of world economic and
political conditions. The Partnership believes that the profitability of, and risks
associated with, leases to foreign customers is generally the same as those of domestic
customers. The Partnerships leases generally require all payments to be made in United
States dollars.
 (b)
    
    Leasing AgentThe Partnership and the Leasing Agent have entered into an agreement (the Leasing Agent
Agreement) whereby the Leasing Agent manages the leasing operations for all equipment
owned by the Partnership. In addition to responsibility for leasing and re-leasing the
equipment to ocean carriers, the Leasing Agent disposes of the containers at the end of
their useful economic life and has full discretion over which ocean carriers and suppliers
of goods and services it may deal with. The Leasing Agent Agreement permits the Leasing
Agent to use the containers owned by the Partnership, together with other containers owned
or managed by the Leasing Agent and its affiliates, as part of a single fleet operated
without regard to ownership. The Leasing Agent Agreement generally provides that the
Leasing Agent will make payments to the Partnership based upon rentals collected from
ocean carriers after deducting direct operating expenses and management fees due both to
CCC and the Leasing Agent.
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CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Unaudited Condensed Financial Statements
 (1)
    
    Summary of Significant Accounting Policies (continued)
 (b)
    
    Leasing Agent and Leasing Agent Agreement (continued)The Leasing Agent leases containers to ocean carriers, generally under operating leases
which are either master leases or term leases (mostly one to five years). Master leases do
not specify the exact number of containers to be leased or the term that each container
will remain on hire but allow the ocean carrier to pick up and drop off containers at
various locations, and rentals are charged and recognized based upon the number of
containers used and the applicable per-diem rate. Accordingly, rentals under master leases
are all variable and contingent upon the number of containers used.Term leases are for a fixed quantity of containers for a fixed period of time, typically
varying from three to five years. In most cases, containers cannot be returned prior to
the expiration of the lease. Term lease agreements may contain early termination penalties
that apply in the event of early redelivery. Term leases provide greater revenue stability
to the lessor, usually at lower lease rates than master leases. Ocean carriers use term
leases to lower their operating costs when they have a need for an identified number of
containers for a specified term. Rentals under term leases are charged and recognized
based upon the number of containers leased, the applicable per diem rate and the length of
the lease, irrespective of the number of days which the customer actually uses the
containers.(c)
    
    Basis of PresentationThe accompanying unaudited condensed financial statements have been prepared in
accordance with accounting principles generally accepted in the United States of America
for interim financial information and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information and footnotes
required by accounting principles generally accepted in the United States of America for
annual financial statements. In the opinion of management, all adjustments (consisting of
normal recurring accruals) considered necessary for a fair presentation have been included.
Operating results for the interim period are not necessarily indicative of the results
that may be expected for the fiscal year ending December 31, 2008. For further
information, refer to the financial statements and footnotes thereto included in the
Partnerships Annual Report on Form 10-K for the year ended December 31, 2007.(d)
    
    Use of Estimates in interim financial statementsThe preparation of interim financial statements, in conformity with US GAAP and SEC
regulations for interim reporting, requires the Partnership to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reported period. The most significant
estimates relate to the carrying value of equipment including estimates relating to
depreciable lives, residual values and asset impairments. Actual results could differ from
those estimates.
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CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Unaudited Condensed Financial Statements
 (1)
    
    Summary of Significant Accounting Policies (continued)
 (e)
    
    Container Rental EquipmentContainer rental equipment is depreciated over a 15-year life using the straight-line basis
to its residual value of 10% of original equipment cost. Depreciation policies are also
evaluated to determine whether subsequent events and circumstances warrant revised
estimates of useful lives. Residual values are only revised downwards.In accordance with Statement of Financial Accounting Standards (SFAS) No. 144,
Accounting for the Impairment or Disposal of Long-Lived Assets, container rental
equipment is considered to be impaired if the carrying value of the asset exceeds the
expected future cash flows from related operations (undiscounted and without interest
charges). If impairment is deemed to exist, the assets are written down to fair value. An
analysis of projected future cash flows from container rental equipment operations is
prepared annually, or upon material changes in market conditions. The primary variables
utilized in the analysis are current and projected utilization rates, per-diem rental
rates, direct operating expenses, fleet size and timing of container disposals.
Additionally, the Partnership evaluates future cash flows and potential impairment for its
entire container fleet rather than for each container type or individual container, and as
a result, future losses could result for individual container dispositions due to various
factors, including age, condition, suitability for continued leasing, as well as the
geographical location of containers when disposed. There were no impairment charges to the
carrying value of container rental equipment for the three-month periods ended March 31,
2008 and 2007.(f)
    
    Allocation of Net Income or Loss, Partnership Distributions and Partners CapitalNet income or loss has been allocated between the general and limited partners in
accordance with the Partnership Agreement. The Partnership Agreement generally provides
that CCC shall at all times maintain at least a 1% interest in each item of income or loss,
including the gain arising from the sale of containers. The Partnership Agreement further
provides that the gain arising from the sale of containers be allocated first to the
partners with capital account deficit balances in an amount sufficient to eliminate any
deficit capital account balance. Thereafter, the Partnerships gains arising from the sale
of containers are allocated to the partners in accordance with their share of sale proceeds
distributed. The Partnership Agreement also provides for income (excluding the gain
arising from the sale of containers) for any period, be allocated to CCC in an amount equal
to that portion of CCCs distributions in excess of 1% of the total distributions made to
both CCC and the limited partners of the Partnership for such period, as well as other
allocation adjustments.Actual cash distributions differ from the allocations of net income or loss between the
general and limited partners as presented in these financial statements. Partnership
distributions are paid to its partners (general and limited) from distributable cash from
operations, allocated 95% to the limited partners and 5% to CCC. Distributions of sales
proceeds are allocated 99% to the limited partners and 1% to CCC. The allocations remain
in effect until such time as the limited partners have received from the Partnership
aggregate distributions in an amount equal to their capital contributions plus an 8%
cumulative, compounded (daily), annual return on their adjusted capital contributions.
Thereafter, all Partnership distributions will be allocated 85% to the limited partners and
15% to CCC. Cash distributions from operations to CCC in excess of 5% of distributable
cash will be considered an incentive fee and will be recorded as compensation to CCC, with
the remaining distributions from operations charged to partners capital.
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CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Unaudited Condensed Financial Statements
 (1)
    
    Summary of Significant Accounting Policies (continued)
 (f)
    
    Allocation of Net Income or Loss, Partnership Distributions and Partners Capital
(continued)Upon dissolution, the assets of the Partnership will be sold and the proceeds thereof
distributed as follows: (i) all of the Partnerships debts and liabilities to persons
other than CCC or the limited partners shall be paid and discharged; (ii) all of the
Partnerships debts and liabilities to CCC and the limited partners shall be paid and
discharged; and (iii) the balance of such proceeds shall be distributed to CCC and the
limited partners in accordance with the positive balances of CCC and the limited partners
capital accounts. CCC shall contribute to the Partnership an amount equal to the lesser of
the deficit balance in its capital account at the time of such liquidation, or 1.01% of the
excess of the Limited Partners capital contribution to the Partnership over the capital
contributions previously made to the Partnership by CCC after giving effect to the
allocation of income or loss arising from the liquidation of the Partnerships assets.(g)
    
    Accounting pronouncements adopted during the periodOn February 15, 2007 the Financial Accounting Standards Board (FASB) issued SFAS No. 159,
The Fair Value Option for Financial Assets and Financial Liabilities  Including an
Amendment of FASB Statement No. 115 (SFAS 159). This standard permits an entity to
choose to measure many financial instruments and certain other items at fair value. The
unrealized gains and losses on items for which the fair value option has been elected will
be reported in earnings at each subsequent reporting date. The fair value option: (a) may
be applied instrument by instrument, with a few exceptions, such as investments otherwise
accounted for by the equity method; (b) is irrevocable (unless a new election date occurs);
and (c) is applied only to entire instruments and not to portions of instruments. On
January 1, 2008 the Partnership adopted SFAS 159, however, the Partnership has elected not
to use the fair value option for any of its existing financial assets and liabilities and
consequently, adoption had no impact.In September 2006 the FASB issued SFAS No. 157, Fair Value Measurements (SFAS 157),
which provides a single definition of fair value, establishes a framework for the
measurement of fair value and expands disclosure about the use of fair value to measure
assets and liabilities. SFAS 157 is effective for fiscal years beginning after November 15,
2007, and for interim periods within those fiscal years. In November 2007, the FASB agreed
to defer the effective date of Statement 157 for all non-financial assets and liabilities
by one year. The Partnership adopted the effective provisions of SFAS 157 as of January 1,
2008. There was no impact to the condensed interim financial statements upon adoption. At
March 31, 2008, the Partnership did not have any financial assets or liabilities that were
subject to the expanded disclosures regarding fair value measurements, consequently
adoption had no disclosure impact.
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CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Unaudited Condensed Financial Statements
 (2)
    
    Net Lease Receivables Due from Leasing AgentNet lease receivables due from Leasing Agent at March 31, 2008 and December 31, 2007
comprised:
 March 31,
    
    
    December 31,2008
    
    
    2007Gross lease receivables
    
    $
    670,471
    
    
    $
    599,208Less:Direct operating payables and accrued expenses
    
    
    111,284
    
    
    
    115,694Base management fees payable
    
    
    32,533
    
    
    
    35,913Reimbursed administrative expenses
    
    
    8,621
    
    
    
    9,622Allowance for doubtful accounts
    
    
    47,933
    
    
    
    47,419200,371
    
    
    
    208,648Net lease receivables due from Leasing Agent
    
    $
    470,100
    
    
    $
    390,560
  (3)
    
    Net Lease RevenueNet lease revenue for the three-month periods ended March 31, 2008 and 2007 comprised:
 Three Months EndedMarch 31,
    
    
    March 31,2008
    
    
    2007Gross lease revenue
    
    $
    583,704
    
    
    $
    698,354Less:Direct operating expenses
    
    
    71,873
    
    
    
    165,364Base management fees
    
    
    40,198
    
    
    
    48,377Reimbursed administrative expensesSalaries
    
    
    20,526
    
    
    
    23,348Other payroll related expenses
    
    
    2,519
    
    
    
    4,392General and administrative expenses
    
    
    4,478
    
    
    
    7,314Total reimbursed administrative expenses
    
    
    27,523
    
    
    
    35,054139,594
    
    
    
    248,795Net lease revenue
    
    $
    444,110
    
    
    $
    449,559
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CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Unaudited Condensed Financial Statements
 (4)
    
    Operating SegmentAn operating segment is a component of an enterprise that engages in business activities from
which it may earn revenues and incur expenses, whose operating results are regularly reviewed
by the enterprises chief operating decision maker to make decisions about resources to be
allocated to the segment and assess its performance, and about which separate financial
information is available. Management operates the Partnerships container fleet as a
homogenous unit and has determined that as such, it has a single reportable operating segment.A summary of gross lease revenue earned by each Partnership container type for the three-month
periods ended March 31, 2008 and 2007 follows:
 Three Months EndedMarch 31,
    
    
    March 31,2008
    
    
    2007Dry cargo containers
    
    $
    427,096
    
    
    $
    505,841Refrigerated containers
    
    
    117,036
    
    
    
    152,473Tank containers
    
    
    39,572
    
    
    
    40,040Total
    
    $
    583,704
    
    
    $
    698,354
  (5)
    
    Limited Partners CapitalCash distributions made to the limited partners for the three-month periods ended March 31,
2008 and 2007 were as follows:
 Three Months EndedMarch 31,
    
    
    March 31,2008
    
    
    2007Cash Distribution from Operations
    
    $
    406,582
    
    
    $
    493,231Cash Distribution from Sales Proceeds
    
    
    226,620
    
    
    
    446,574Total Cash Distributions
    
    $
    633,202
    
    
    $
    939,805
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Managements Discussion and Analysis of Financial Condition and Results of
Operations
  Results of Operations
 Overview
    Dry Cargo
    
    
    RefrigeratedContainers
    
    
    Containers
    
    
    Tank40-Foot
    
    
    
    
    
    40-Foot
    
    
    Containers20-Foot
    
    
    40-Foot
    
    
    High-Cube
    
    
    20-Foot
    
    
    High-Cube
    
    
    24,000-LiterContainers on lease:Master lease
    
    
    2,034
    
    
    
    755
    
    
    
    1,209
    
    
    
    30
    
    
    
    78
    
    
    
    20Term leaseShort term1
    
    
    326
    
    
    
    101
    
    
    
    93
    
    
    
    5
    
    
    
    8
    
    
    
    12Long term2
    
    
    603
    
    
    
    121
    
    
    
    173
    
    
    
    4
    
    
    
    36
    
    
    
    15929
    
    
    
    222
    
    
    
    266
    
    
    
    9
    
    
    
    44
    
    
    
    27Subtotal
    
    
    2,963
    
    
    
    977
    
    
    
    1,475
    
    
    
    39
    
    
    
    122
    
    
    
    47Containers off lease
    
    
    161
    
    
    
    56
    
    
    
    118
    
    
    
    25
    
    
    
    25
    
    
    
    4Total container fleet
    
    
    3,124
    
    
    
    1,033
    
    
    
    1,593
    
    
    
    64
    
    
    
    147
    
    
    
    51
 
 1.
    
    Short term leases represent term leases that are either scheduled for renegotiation or that
may expire on or before March 2009.2.
    
    Long term leases represent term leases, the majority of which will expire between April 2009
and December 2012.  
    
    Activity-related expenses, including agent and depot costs such as repairs,
maintenance and handling;
    
    Inventory-related expenses for off-hire containers, comprising storage and
repositioning costs. These costs are sensitive to the quantity of off-hire containers
as well as the frequency at which containers are re-delivered and the frequency and size
of repositioning moves undertaken;
    
    Legal and other expenses, including legal costs related to the recovery of containers
and doubtful accounts, insurance and provisions for doubtful accounts.
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Dry Cargo
    
    Refrigerated
    
    TankContainers
    
    Containers
    
    Containers40-Foot
    
    
    
    
    
    
    
    
    
    40-Foot20-Foot
    
    40-Foot
    
    High-Cube
    
    20-Foot
    
    High-Cube
    
    24,000-LiterUnits
    
    %
    
    Units
    
    %
    
    Units
    
    %
    
    Units
    
    %
    
    Units
    
    %
    
    Units
    
    %Total purchases
    
    
    4,553
    
    
    
    100
    %
    
    
    1,500
    
    
    
    100
    %
    
    
    1,750
    
    
    
    100
    %
    
    
    90
    
    
    
    100
    %
    
    
    300
    
    
    
    100
    %
    
    
    52
    
    
    
    100
    %Less disposals
    
    
    1,429
    
    
    
    31
    %
    
    
    467
    
    
    
    31
    %
    
    
    157
    
    
    
    9
    %
    
    
    26
    
    
    
    29
    %
    
    
    153
    
    
    
    51
    %
    
    
    1
    
    
    
    2
    %Remaining fleet at
March 31, 2008
    
    
    3,124
    
    
    
    69
    %
    
    
    1,033
    
    
    
    69
    %
    
    
    1,593
    
    
    
    91
    %
    
    
    64
    
    
    
    71
    %
    
    
    147
    
    
    
    49
    %
    
    
    51
    
    
    
    98
    %
  
    
    The Leasing Agent extended certain expiring leases at lower rental rates;
    
    Off hire containers were placed on leases at rates that, although they resulted in a
reduction in the average per-diem rental rates, they also significantly lowered inventory
levels;
    
    The overall lease market for the Partnerships older containers continues to be very
competitive and, therefore, subject to significant pricing pressures.
   Three Months EndedMarch 31,
    
    March 31,2008
    
    2007Fleet size (measured in twenty-foot equivalent units (TEU))Dry cargo containers
    
    
    8,467
    
    
    
    9,250Refrigerated containers
    
    
    377
    
    
    
    455Tank containers
    
    
    51
    
    
    
    51Average utilization ratesDry cargo containers
    
    
    97
    %
    
    
    86
    %Refrigerated containers
    
    
    81
    %
    
    
    78
    %Tank containers
    
    
    96
    %
    
    
    92
    %
  12




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##### Table of Contents



Three Months Ended March 31, 2008 Compared to the Three Months Ended March 31, 2007
 Overview
 Net income
 Analysis and discussion
 Net lease revenue
 Depreciation expense
 Other general and administrative expenses
 Net gain on disposal of equipment
  13




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##### Table of Contents



Liquidity and Capital Resources
  th
   Cash from Operating Activities:
 Cash from Investing Activities:
 Cash from Financing Activities
 14




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##### Table of Contents



Critical Accounting Policies
  
    
    Container equipment  depreciable lives and residual values
    
    Container equipment  recoverability and valuation in accordance with SFAS 144
Accounting for the Impairment or Disposal of Long Lived Assets
    
    Allowance for doubtful accounts
  Inflation
  
 Quantitative and Qualitative Disclosures About Market Risk
 Exchange rate risk
 
 Controls and Procedures
  
 Controls and Procedures
  15




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##### Table of Contents



PART II  OTHER INFORMATION
 
 Legal Proceedings
  
 Risk Factors
  
 Unregistered Sales of Equity Securities and Use of Proceeds
  
 Defaults Upon Senior Securities
  
 Submissions of Matters to a Vote of Securities Holders
  
 Other Information
  
 Exhibits
 (a)
    
    Exhibits
 ExhibitNo.
    
    Description
    
    Method of Filing3(a)
    
    Limited Partnership Agreement, amended
and restated as of December 28, 1995
    
    *3(b)
    
    Certificate of Limited Partnership
    
    **10
    
    Form of Leasing Agent Agreement with
Cronos Containers Limited
    
    ***31.1
    
    Rule 13a-14 Certification
    
    Filed with this document31.2
    
    Rule 13a-14 Certification
    
    Filed with this document32
    
    Section 1350 Certification
    
    Filed with this document
****
 
 *
    
    Incorporated by reference to Exhibit A to the Prospectus of the Partnership dated December
28, 1995, included as part of Registration Statement on Form S-1 (No. 33-98290)**
    
    Incorporated by reference to Exhibit 3.2 to the Registration Statement on Form S-1 (No.
33-98290)***
    
    Incorporated by reference to Exhibit 10.2 to the Registration Statement on Form S-1 (No.
33-98290)****
    
    This certification, required by Section 906 of the Sarbanes-Oxley Act of 2002, other than as
required by Section 906, is not to be deemed filed with the Commission or subject to the
rules and regulations promulgated by the Commission under the Securities Exchange Act of 1934,
as amended, or to the liabilities of Section 18 of said Act. 16




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##### Table of Contents



SIGNATURES
  CRONOS GLOBAL INCOME FUND XVI, L.P.By
    Cronos Capital Corp.The General Partner By
    /s/ Dennis J. TietzDennis J. TietzPresident and Director of
Cronos Capital Corp. (CCC)
Principal Executive Officer of CCC By
    /s/ Frank P. VaughanFrank P. VaughanChief Financial Officer and
Director of Cronos Capital Corp. (CCC)
Principal Financial and Accounting Officer of CCC  17




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##### Table of Contents



EXHIBIT INDEX
 ExhibitNo.
    
    Description
    
    Method of Filing3(a)
    
    Limited Partnership Agreement, amended
and restated as of December 28, 1995
    
    *3(b)
    
    Certificate of Limited Partnership
    
    **10
    
    Form of Leasing Agent Agreement with
Cronos Containers Limited
    
    ***31.1
    
    Rule 13a-14 Certification
    
    Filed with this document31.2
    
    Rule 13a-14 Certification
    
    Filed with this document32
    
    Section 1350 Certification
    
    Filed with this document
****
 
 *
    
    Incorporated by reference to Exhibit A to the Prospectus of the Partnership dated December
28, 1995, included as part of Registration Statement on Form S-1 (No. 33-98290)**
    
    Incorporated by reference to Exhibit 3.2 to the Registration Statement on Form S-1 (No.
33-98290)***
    
    Incorporated by reference to Exhibit 10.2 to the Registration Statement on Form S-1 (No.
33-98290)****
    
    This certification, required by Section 906 of the Sarbanes-Oxley Act of 2002, other than as
required by Section 906, is not deemed to be filed with the Commission or subject to the
rules and regulations promulgated by the Commission under the Securities Exchange Act of 1934,
as amended, or to the liabilities of Section 18 of said Act.