<PAGE>   1

                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                    FORM 10-K

[X]     ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
            ACT OF 1934 [NO FEE REQUIRED, EFFECTIVE OCTOBER 7, 1996].

                   For the fiscal year ended December 31, 1999

                                       OR

[ ]     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                     EXCHANGE ACT OF 1934 [NO FEE REQUIRED]

           For the transition period from ____________ to ____________

                         Commission file number 0-27496

                       CRONOS GLOBAL INCOME FUND XVI, L.P.

             (Exact name of registrant as specified in its charter)

               California                              94-3230380
      (State or other jurisdiction          (I.R.S. Employer Identification No.)
          of incorporation or
             organization)

         444 Market Street, 15th Floor, San Francisco, California 94111
               (Address of principal executive offices) (Zip Code)
            Registrant's telephone number, including area code (415)
      677-8990 Securities registered pursuant to Section 12(b) of the Act:

                                                  Name of each exchange on
        Title of each class                           which registered
        -------------------                           ----------------
         Not Applicable


          Securities registered pursuant to Section 12(g) of the Act:

                     UNITS OF LIMITED PARTNERSHIP INTERESTS
                     --------------------------------------
                                (Title of Class)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports, and (2) has been subject to such filing
requirements for the past 90 days. Yes [X] . No [ ].

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K (Section 229.405 of this chapter) is not contained herein, and
will not be contained, to the best of registrant's knowledge, in definitive
proxy or information statements incorporated by reference in Part III of this
Form 10-K or any amendment to this Form 10-K. [X]

The aggregate market value of the voting stock held by non-affiliates of the
registrant is not applicable.

<TABLE>
<CAPTION>
                                               Documents incorporated by Reference
                                               -----------------------------------
<S>      <C>                           <C>
PART I
Item 1 - Business                      Prospectus of Cronos Global Income Fund XVI, L.P., dated December
                                       28, 1995 included as part of Registration Statement on Form S-1
                                       (No. 33-98290) and supplement thereto dated February 6, 1997

                                       Certificate of Limited Partnership of Cronos Global Income Fund XVI,
                                       L.P., filed as Exhibit 3.2 to the Registration Statement on Form S-1

                                       Form of Leasing Agent Agreement with Cronos Containers Limited,
                                       filed as Exhibit 10.2 to the Registration Statement on Form S-1
                                       (No. 33-98290)
</TABLE>



<PAGE>   2

                         PART I - FINANCIAL INFORMATION


Item 1. Business

   (a) General Development of Business

   The Registrant is a limited partnership organized under the laws of the State
of California on September 1, 1995, for the purpose of owning and leasing marine
cargo containers, special purpose containers and container-related equipment.
The Registrant was initially capitalized with $100 and commenced offering its
limited partnership interests to the public subsequent to December 28, 1995,
pursuant to its Registration Statement on Form S-1 (File No. 33-98290). The
Registrant had no securities holders as defined by the Securities and Exchange
Act of 1934 as of December 31, 1995. Additionally, the Registrant was not
engaged in any trade or business during the period covered by the report, as the
offering broke initial impound on March 29, 1996. On February 3, 1997, Cronos
Capital Corp. ("CCC"), the general partner, suspended the offer and sale of
units in the Registrant. Information concerning the suspended offer and sale of
units in the Registrant is incorporated by reference to the discussion in the
Supplement dated February 6, 1997 to the Registration Statement on Form S-1 (No.
33-98290), dated December 28, 1995, as supplemented December 27, 1996. The
offering was not resumed and terminated on December 27, 1997.

   The Registrant raised $31,993,340 in subscription proceeds. The following
table sets forth the use of said subscription proceeds.


<TABLE>
<CAPTION>
                                               Percentage of      Gross
                                                  Amount         Proceeds
                                                -----------       -----
<S>                                            <C>               <C>
Gross Subscription Proceeds                     $31,993,340       100.0%

Public Offering Expenses:
       Underwriting Commissions                 $ 3,199,334        10.0%
       Offering and Organization Expenses       $ 1,482,466         4.6%
                                                -----------       -----

       Total Public Offering Expenses           $ 4,681,800        14.6%
                                                -----------       -----

Net Proceeds                                    $27,311,540        85.4%

Acquisition Fees                                $ 1,276,220         4.0%

Working Capital Reserve                         $   319,933         1.0%

Unexpended Proceeds                             $   190,993         0.6%
                                                -----------       -----

Gross Proceeds Invested in Equipment            $25,524,394        79.8%
                                                ===========       =====
</TABLE>


   The general partner, CCC, is a wholly-owned subsidiary of Cronos
Holdings/Investments (U.S.), Inc., a Delaware corporation. These and other
affiliated companies are ultimately wholly-owned by The Cronos Group, a holding
company registered in Luxembourg ("the Parent Company") and are collectively
referred to as the "Group". The activities of the container division of the
Group are managed through the Group's subsidiary in the United Kingdom, Cronos
Containers Limited ("the Leasing Company"). The Leasing Company manages the
leasing operations of all equipment owned by the Group on its own behalf or
managed on behalf of other third-party container owners, including all other
programs organized by CCC.



                                       2
<PAGE>   3

   On October 9, 1995, the Leasing Company entered into a Leasing Agent
Agreement with the Registrant assuming the responsibility for all container
leasing activities.

   For a discussion of recent developments in the Registrant's business, see
Item 7, "Management's Discussion and Analysis of Financial Condition and Result
of Operations."

   For information concerning the containers acquired by the Registrant, see
Item 2, "Properties."

   (b) Financial Information About Industry Segments

   The Financial Accounting Standards Board has issued Statement of Financial
Accounting Standards (SFAS) No. 131, "Disclosures about Segments of an
Enterprise and Related Information," which requires that public business
enterprises report financial and descriptive information about reportable
operating segments. An 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. The Leasing Company's management operates the
Partnership's container fleet as a homogenous unit and has determined, after
considering the requirements of SFAS No. 131, that as such it has a single
reportable operating segment.

   The Partnership derives revenues from dry cargo containers, refrigerated
containers and tank containers. As of December 31, 1999, the Partnership
operated 3,815 twenty-foot, 1,045 forty-foot and 456 forty-foot high-cube marine
dry cargo containers, as well as 90 twenty-foot and 299 forty-foot refrigerated
cargo containers, and 52 twenty-four thousand-liter tanks. A summary of gross
lease revenue, by product, for the years ended December 31, 1999, 1998 and 1997
follows:


<TABLE>
<CAPTION>
                                 1999             1998             1997
                              ----------       ----------       ----------
<S>                           <C>              <C>              <C>
Dry cargo containers          $2,068,065       $2,459,658       $2,590,322
Refrigerated containers        1,493,838        1,521,647        1,486,014
Tank containers                  171,213          226,648          241,763
                              ----------       ----------       ----------

Total                         $3,733,116       $4,207,953       $4,318,099
                              ==========       ==========       ==========
</TABLE>


   Due to the Partnership's lack of information regarding the physical location
of its fleet of containers when on lease in the global shipping trade, it is
impracticable to provide the geographic area information required by SFAS No.
131. Any attempt to separate "foreign" operations from "domestic" operations
would be dependent on definitions and assumptions that are so subjective as to
render the information meaningless and potentially misleading.

   One sub-lessee of the Leasing Company contributed approximately 15% or
$545,740 of the Registrant's rental revenue billings earned during 1999. One
sub-lessee of the Leasing Company contributed approximately 13% of the
Registrant's rental revenue billings earned during 1998 and 1997.

   (c) Narrative Description of Business

(c)(1)(i) A marine cargo container is a reusable metal container designed for
the efficient carriage of cargo with a minimum of exposure to loss from damage
or theft. Containers are manufactured to conform to worldwide standards of
container dimensions and container ship fittings adopted by the International
Standards Organization ("ISO") in 1968. The standard container is either 20'
long x 8' wide x 8'6" high (one twenty-foot equivalent unit ("TEU"), the
standard unit of physical measurement in the container industry) or 40' long x
8' wide x 8'6" high (two TEU). Standardization of the construction, maintenance
and handling of containers allows containers to be picked up, dropped off,
stored and repaired efficiently throughout the world. This standardization is
the foundation on which the container industry has developed.



                                       3
<PAGE>   4

   Standard dry cargo containers are rectangular boxes with no moving parts,
other than doors, and are typically made of steel or aluminum. They are
constructed to carry a wide variety of cargos ranging from heavy industrial raw
materials to light-weight finished goods. Specialized containers include, among
others, refrigerated containers for the transport of temperature-sensitive goods
and tank containers for the carriage of liquid cargo. Dry cargo containers
currently constitute approximately 87% (in TEU) of the worldwide container
fleet. Refrigerated and tank containers currently constitute approximately 8%
(in TEU) of the worldwide container fleet, with other specialized containers
constituting the remainder.

   One of the primary benefits of containerization has been the ability of the
shipping industry to effectively lower freight rates due to the efficiencies
created by standardized intermodal containers. Containers can be handled much
more efficiently than loose cargo and are typically shipped via several modes of
transportation, including truck, railway and ship. Containers require loading
and unloading only once and remain sealed until arrival at the final
destination, significantly reducing transport time, labor and handling costs and
losses due to damage and theft. Efficient movement of containerized cargo
between ship and shore reduces the amount of time that a ship must spend in port
and reduces the transit time of freight moves.

   The logistical advantages and reduced freight rates brought about by
containerization have been major catalysts for world trade growth during the
last twenty-five years, resulting in increased demand for containerization. The
world's container fleet has grown from an estimated 270,000 TEU in 1969 to
approximately 13 million TEU by mid-1999.

   BENEFITS OF LEASING

   Leasing companies own approximately 46% of the world's container fleet with
the balance owned predominantly by shipping lines. Shipping lines, which
traditionally operate on tight profit margins, often supplement their owned
fleet of containers by leasing a portion of their equipment from container
leasing companies and, in doing so, achieve the following financial and
operational benefits:

   -  Leasing allows the shipping lines to utilize the equipment they need
      without having to make large capital expenditures;

   -  Leasing offers a shipping line an alternative source of financing in a
      traditionally capital-intensive industry;

   -  Leasing enables shipping lines to expand their routes and market shares at
      a relatively inexpensive cost without making a permanent commitment to
      support their new structure;

   -  Leasing allows shipping lines to respond to changing seasonal and trade
      route demands, thereby optimizing their capital investment and storage
      costs.

   TYPES OF LEASES

   The Registrant's containers are leased primarily to shipping lines operating
in major trade routes (see Item 1(d)). Most if not all of the Registrant's
marine dry cargo containers are leased pursuant to operating leases, primarily
master leases, where the containers are leased to the ocean carrier on a daily
basis for any desired length of time, with the flexibility of picking up and
dropping off containers at various agreed upon locations around the world. Some
of the Registrant's containers may be leased pursuant to term leases, which may
have durations of less than one year to five years. The Registrant's specialized
containers are generally leased on longer-term leases because the higher cost,
value and complexity of this equipment makes it more expensive to redeliver and
lease out.

   -  Master lease. Most short-term leases are "master leases," under which a
      customer reserves the right to lease a certain number of containers, as
      needed, under a general agreement between the lessor and the lessee. Such
      leases provide customers with greater flexibility by allowing them to pick
      up and drop off containers where and when needed, subject to restrictions
      and availability, as specified in each lease. The commercial terms of
      master leases are negotiated annually. Master leases also define the
      number of containers that may be returned within each calendar month, the
      return locations and applicable drop-off charges. Due to the increased
      flexibility they offer, master leases usually command higher per-diem
      rates and generate more ancillary fees (including pick-up, drop-off,
      handling and off-hire fees) than term leases.



                                       4
<PAGE>   5

-  Term lease. Term leases are for a fixed period of time and include both long
   and short-term commitments, with most extending from three to five years.
   Term lease agreements may contain early termination penalties that apply in
   the event of early redelivery. In most cases, however, equipment is not
   returned prior to the expiration of the lease. Term leases provide greater
   revenue stability to the lessor, but at lower rates than master leases. Ocean
   carriers use long-term leases when they have a need for an identified number
   of containers for a specified term. Short-term lease agreements have a
   duration of less than one year and include one-way, repositioning and
   round-trip leases. They differ from master leases in that they define the
   number and the term of the containers to be leased. Ocean carriers generally
   use one-way leases to manage trade imbalances (where more containerized cargo
   moves in one direction than another) by picking up a container in one port
   and dropping it off at another location after one or more legs of a voyage.

   The terms and conditions of the Registrant's leases provide that customers
are responsible for paying all taxes and service charges arising from container
use, maintaining the containers in good and safe operating condition while on
lease and paying for repairs, excluding ordinary wear and tear, upon redelivery.
Some leases provide for a "damage protection plan" whereby lessees, for an
additional payment (which may be in the form of a higher per-diem rate), are
relieved of the responsibility of paying some of the repair costs upon
redelivery of the containers. The Leasing Company has historically provided this
service on a limited basis to selected customers. Repairs provided under such
plans are carried out by the same depots, under the same procedures, as are
repairs to containers not covered by such plans. Customers also are required to
insure leased containers against physical damage and loss, and against third
party liability for loss, damage, bodily injury or death.

   Lease rates depend on several factors including the type of lease, length of
term, maintenance provided, type and age of the equipment, location and
availability, and market conditions.

   CUSTOMERS

   The Registrant is not dependent upon any particular customer or group of
customers of the Leasing Company and only one of those customers accounted for
more than 10% of the Registrant's revenue, contributing approximately 15% or
$545,740 of the rental revenue billings earned during 1999. The Registrant's
customers are billed and pay in United States dollars. The Leasing Company sets
maximum credit limits for the Registrant's customers, limiting the number of
containers leased to each according to established credit criteria. The Leasing
Company continually tracks its credit exposure to each customer. The Leasing
Company's credit committee meets quarterly to analyze the performance of the
Registrant's customers and to recommend actions to be taken in order to minimize
credit risks. The Leasing Company uses specialist third party credit information
services and reports prepared by local staff to assess credit applications.

   FLEET PROFILE

   The Registrant acquired high-quality dry cargo containers manufactured to
specifications that exceed ISO standards and designed to minimize repair and
operating costs.

   Dry cargo containers are the most commonly used type of container in the
shipping industry. The Registrant's dry cargo container fleet is constructed of
all Corten(R) steel (i.e., Corten(R) roofs, walls, doors and undercarriage),
which is a high-tensile steel yielding greater damage and corrosion resistance
than mild steel.

   Refrigerated containers are used to transport temperature-sensitive products,
such as meat, fruit, vegetables and photographic film. All of the Registrant's
refrigerated containers have high-grade stainless steel interiors. The majority
of the Registrant's 20-foot refrigerated containers have high-grade stainless
steel walls, while most of the Registrant's 40-foot refrigerated containers are
steel framed with aluminum outer walls to reduce weight. As with the dry cargo
containers, all refrigerated containers are designed to minimize repair and
maintenance and maximize damage resistance.



                                       5
<PAGE>   6

    Tank containers are constructed in compliance with International Maritime
Organization ("IMO") standards and recommendations. The tanks purchased by the
Registrant have all been IMO-1 type tanks constructed to comply with IMO
recommendations which require specific pressure ratings and shell thicknesses.
These containers are designed to carry highly flammable materials, corrosives,
toxics and oxidizing substances, but are also capable of carrying non-hazardous
materials and foodstuffs. They have a capacity of 21,000-24,000 liters and are
generally insulated and equipped with steam or electrical heating.

   The Registrant purchased its dry cargo containers from manufacturers in
China, South Korea, Taiwan, Indonesia, India, Italy and the United Kingdom as
part of a policy of sourcing container production in locations where it can meet
customer demands most effectively.

   The Registrant's refrigerated containers were purchased mainly from Korean
 manufacturers. The majority of its refrigeration units were purchased from
 Carrier Transicold, the primary container refrigeration unit supplier in the
 United States.

   The Registrant's tank containers were purchased mainly from United Kingdom
manufacturers.

   As of December 31, 1999, the Registrant owned 3,815 twenty-foot, 1,045
forty-foot and 456 forty-foot high-cube marine dry cargo containers, as well as
90 twenty-foot and 299 forty-foot refrigerated marine cargo containers, and 52
twenty-four thousand-liter tank containers. The following table sets forth the
number of containers on lease, by container type and lease type as of December
31, 1999:


<TABLE>
<CAPTION>
                                             Number of
                                           Containers on
                                              Lease
                                           -------------
<S>                                        <C>
20-Foot Dry Cargo Containers:
   Term Leases                                  453
   Master Leases                              2,602
                                              -----
        Total on lease                        3,055
                                              =====

40-Foot Dry Cargo Containers:
   Term Leases                                  349
   Master Leases                                486
                                              -----
        Total on lease                          835
                                              =====

40-Foot High-Cube Dry Cargo Containers:
   Term Leases                                  140
   Master Leases                                254
                                              -----
        Total on lease                          394
                                              =====

20-Foot Refrigerated Cargo Containers:
   Term Leases                                   50
   Master Leases                                 38
                                              -----
        Total on lease                           88
                                              =====

40-Foot Refrigerated Cargo Containers:
   Term Leases                                  204
   Master Leases                                 75
                                              -----
        Total on lease                          279
                                              =====

24,000-Liter Tank Containers:
   Term Leases                                   31
   Master Leases                                  8
                                              -----
        Total on lease                           39
                                              =====
</TABLE>



                                       6
<PAGE>   7

   The Leasing Company makes payments to the Registrant based upon rentals
collected from ocean carriers after deducting certain operating expenses
associated with the containers, such as the base management fee payable to CCC,
certain expense reimbursements and incentive fees payable to CCC, the costs of
maintenance and repairs not performed by lessees, independent agent fees and
expenses, depot expenses for handling, inspection and storage, and additional
insurance.

   REPAIR AND MAINTENANCE

   All containers are inspected and repaired when redelivered by a customer, and
customers are obligated to pay for all damage repair, excluding wear and tear,
according to standardized industry guidelines. Depots in major port areas
perform repair and maintenance that is verified by independent surveyors or the
Leasing Company's technical and operations staff. Before any repair or
refurbishment is authorized on older containers in the Registrant's fleet, the
Leasing Company's technical and operations staff reviews the age, condition and
type of container, and its suitability for continued leasing. The Leasing
Company compares the cost of such repair or refurbishment with the prevailing
market resale price that might be obtained for that container and makes the
appropriate decision whether to repair or sell the container.

   MARKET FOR USED CONTAINERS

   The Registrant estimates that the period for which a dry cargo or
refrigerated container may be used as a leased marine cargo container ranges
from 10 to 15 years. Tank containers generally may be used for 12 to 18 years.
The Leasing Company, on behalf of the Registrant, disposes of used containers in
a worldwide market in which buyers include wholesalers, mini-storage operations,
construction companies and others. As the Registrant's fleet ages, a larger
proportion of its revenue will be derived from selling its containers.

   OPERATIONS

   The Registrant's container leasing and marketing operations are conducted
through the Leasing Company in the United Kingdom, with support provided by area
offices and dedicated agents located in San Francisco, California; Iselin, New
Jersey; Hamburg; Antwerp; Genoa; Gothenburg, Sweden; Singapore; Hong Kong;
Sydney; Tokyo; Taipei; Seoul; Rio de Janeiro; Shanghai and Madras, India.

   The Leasing Company also maintains agency relationships with over 25
independent agents around the world, to whom it pays commissions based upon the
amount of revenues they generate in the region or the number of containers that
are leased from their area on behalf of the Registrant. The agents are located
in jurisdictions where the volume of the Leasing Company's business necessitates
a presence in the area but is not sufficient to justify a fully-functioning
Leasing Company office or dedicated agent. These agents provide marketing
support to the area offices covering the region, together with limited
operational support.

   In addition, the Leasing Company relies on the services of over 300
independently-owned and operated depots around the world to inspect, repair,
maintain and store containers while off-hire. The Leasing Company's area offices
authorize all container movements into and out of the depot and supervise all
repair and maintenance performed by the depot. The Leasing Company's technical
staff sets the standards for repair of its owned and managed fleet throughout
the world and monitors the quality of depot repair work. The depots provide a
vital link to the Leasing Company's operations, as the redelivery of a container
into a depot is the point at which the container is off-hired from one customer
and repaired in preparation for re-leasing to the next.

   The Leasing Company's global network is integrated with its computer system
and provides 24-hour communication between offices, agents and depots. The
system allows the Leasing Company to manage and control the Registrant's fleet
on a global basis, providing it with the responsiveness and flexibility
necessary to service the master lease market effectively. This system is an
integral part of the Leasing Company's service, as it processes information
received from the various offices, generates billings to the Registrant's
lessees and produces a wide range of reports on all aspects of the Registrant's
leasing activities. The system records the life history of each container,
including the length of time on and off lease and repair costs. It also traces
port activity trends, leasing activity and equipment data per customer. The
operations and marketing data is fully interfaced with the finance and
accounting system to provide revenue, cost and asset information to management
and staff around the world.



                                       7
<PAGE>   8

   INSURANCE

   The Registrant's lease agreements typically require lessees to obtain
insurance to cover all risks of physical damage and loss of the equipment under
lease, as well as public liability and property damage insurance. However, the
precise nature and amount of the insurance carried by each ocean carrier varies
from lessee to lessee. In addition, the Registrant has purchased secondary
insurance effective in the event that a lessee fails to have adequate primary
coverage. This insurance covers liability arising out of bodily injury and/or
property damage as a result of the ownership and operation of the containers, as
well as insurance against loss or damage to the containers, loss of lease
revenues in certain cases and costs of container recovery and repair in the
event that a customer goes into bankruptcy. The Registrant believes that the
nature and the amounts of its insurance are customary in the container leasing
industry and subject to standard industry deductions and exclusions.

   (c)(1)(ii) Inapplicable.

   (c)(1)(iii) Inapplicable.

   (c)(1)(iv) Inapplicable.

   (c)(1)(v)The Registrant's containers are leased globally; therefore, seasonal
fluctuations are minimal. Other economic and business factors to which the
transportation industry in general and the container leasing industry in
particular are subject, include fluctuations in general business conditions and
fluctuations in supply and demand for equipment resulting from, among other
things, obsolescence, changes in the methods or economics of a particular mode
of transportation or changes in governmental regulations or safety standards.

   (c)(1)(vi) The Registrant established a working capital reserve of
approximately 1% of subscription proceeds raised. In addition, the Registrant
may reserve additional amounts from anticipated cash distributions to the
partners to meet working capital requirements.

   Amounts due under master leases are calculated at the end of each month and
billed approximately six to eight days thereafter. Amounts due under short-term
and long-term leases are set forth in the respective lease agreements and are
generally payable monthly. However, payment is normally received within 45-100
days of billing. Past due penalties are not customarily collected from lessees
and, accordingly, are not generally levied by the Leasing Company against
lessees of the Registrant's containers.

   (c)(1)(vii) For the fiscal year ended December 31, 1999, one sub-lessee of
the Leasing Company accounted for approximately 15% or $545,740 of the
Registrant's rental revenue billings. The Registrant does not believe that its
ongoing business is dependent upon a single customer, although the loss of one
or more of its largest customers could have an adverse effect upon its business.

   (c)(1)(viii) Inapplicable.

   (c)(1)(ix) Inapplicable.

   (c)(1)(x)Competition among container leasing companies is based upon several
factors, including the location and availability of inventory, lease rates, the
type, quality and condition of the containers, the quality and flexibility of
the service offered and the confidence in and professional relationship with the
lessor. Other factors include the speed with which a leasing company can prepare
its containers for lease and the ease with which a lessee believes it can do
business with a lessor or its local area office. Not all container leasing
companies compete in the same market, as some supply only dry cargo containers
and not specialized containers, while others offer only long-term leases.



                                       8
<PAGE>   9

   The Leasing Company, on behalf of the Registrant, competes with various
container leasing companies in the markets in which it conducts business,
including Transamerica Leasing, GE-Seaco, Textainer Corp., Triton Container
International Ltd. and others. In a series of recent consolidations, several
major leasing companies, as well as numerous smaller ones, have been acquired by
competitors. The Leasing Company believes that the current trend toward
consolidation in the container leasing industry will continue, making economies
of scale, worldwide operations, diversity, size of fleet and financial strength
increasingly important to the successful operation of a container leasing
business. Additionally, as containerization grows, customers may demand more
flexibility from leasing companies regarding per-diem rates, pick-up and
drop-off locations, availability of containers and other terms. Some of the
Leasing Company's competitors may have greater financial resources than the
Leasing Company and may be more capable of offering lower per-diem rates. In the
Leasing Company's experience, however, ocean carriers will generally lease
containers from more than one leasing company in order to minimize dependence on
a single supplier.

   (c)(1)(xi) Inapplicable.

   (c)(1)(xii) Environmental Matters

   A portion of the Registrant's equipment portfolio consists of special purpose
containers, primarily refrigerated containers. Historically, refrigerated
containers have utilized a refrigerant gas which is a chlorofluorocarbon ("CFC")
compound. It is generally assumed that CFCs are harmful to the Earth's ozone
layer when released into the atmosphere. Many nations, including the United
States, have taken action, both collectively and individually, to regulate CFCs.
These nations set various targets for the reduction in production and use of
CFCs starting as early as 1993, and their eventual elimination. There has been
substantial progress recently to determine a viable substitute for the
refrigerant used in containers, such that both the Leasing Company and the
container leasing industry association have selected a replacement refrigerant.
Production of new container refrigeration units operating with the replacement
refrigerant became generally available in 1993. All refrigerated containers
purchased by the Partnership contain the new refrigerant compound and comply
with all current environmental regulations.

   Under the state and Federal laws of the United States, and possibly under the
laws of other nations, the owner of a container may be liable for environmental
damage and/or cleanup and/or other sums in the event of actual or threatened
discharge or other contamination by material in a container. This liability may
be imposed on a container owner, such as the Registrant, even if the owner is
not at fault. The Leasing Company intends, subject to availability and
prevailing market conditions, to obtain insurance on behalf of the Registrant
against these risks on such terms and in such amounts as the Leasing Company
deems reasonable. In addition, subject to availability and applicable insurance
and container industry market conditions, the Leasing Company intends to require
lessees of containers to obtain insurance which protects against these risks and
further to compel lessees to indemnify and defend the Registrant in the case of
an occurrence giving rise to possible liability under applicable environmental
laws.

   (c)(1)(xiii) The Registrant, as a limited partnership, is managed by CCC, the
general partner, and accordingly does not itself have any employees. CCC has 16
employees, consisting of 4 officers, 4 other managers and 8 clerical and staff
personnel.

   (d) Financial Information about Foreign and Domestic Operations and Export
Sales

   The Registrant's business is not divided between foreign or domestic
operations. The Registrant's business is the leasing of containers worldwide to
ocean carriers. To this extent, the Registrant's operations are subject to the
fluctuations of world economic and political conditions. Such factors may affect
the pattern and levels of world trade.

   The Registrant believes that the profitability of, and risks associated with,
leases to foreign customers is generally the same as those of leases to domestic
customers. The Leasing Company's leases generally require all payments to be
made in United States currency.



                                       9
<PAGE>   10

Item 2. Properties

   As of December 31, 1999, the Registrant owned 3,815 twenty-foot, 1,045
forty-foot and 456 forty-foot high-cube marine dry cargo containers, as well as
90 twenty-foot and 299 forty-foot refrigerated cargo containers, and 52
twenty-four thousand-liter tanks, suitable for transporting cargo by rail, sea
or highway. The average useful life and manufacturers' invoice cost of the
Registrant's fleet as of December 31, 1999 was as follows:


<TABLE>
<CAPTION>
                                              Estimated
                                             Useful Life     Average Age   Average Cost
                                             -----------     -----------   ------------
<S>                                          <C>             <C>           <C>
20-Foot Dry Cargo Containers                 10-15 years       4 years       $ 2,488

40-Foot Dry Cargo Containers                 10-15 years       4 years       $ 3,732

40-Foot High-Cube Dry Cargo Containers       10-15 years       4 years       $ 4,070

20-Foot Refrigerated Cargo Containers        10-15 years       4 years       $22,159

40-Foot Refrigerated Cargo Containers        10-15 years       4 years       $26,938

24,000-Liter Tanks                           12-18 years       4 years       $26,660
</TABLE>


   Utilization by lessees of the Registrant's containers fluctuates over time
depending on the supply of and demand for containers in the Registrant's
inventory locations. During 1999, utilization of the dry cargo and refrigerated
container fleet averaged 77% and 99% respectively.

   During 1999, the Registrant disposed of 18 twenty-foot, one forty-foot and
three forty-foot high-cube marine dry cargo containers at an average book gain
of $387 per container.



                                       10
<PAGE>   11

Item 3. Legal Proceedings

   On November 15, 1999, the Parent Company consented to the entry by the
Securities and Exchange Commission ( the "SEC") of an administrative cease and
desist order (the "Order"). The Parent Company is the indirect corporate parent
of CCC, the general partner of the Partnership. Without admitting or denying the
findings made by the SEC in the Order, the Parent Company agreed to cease and
desist from committing or causing any future violation of certain anti-fraud,
reporting, and recordkeeping provisions of the federal securities laws. The
SEC's investigation of the Parent Company began in February, 1997 and was
triggered by the actions of a former chairman, Stefan M. Palatin. The Parent
Company's Board removed Mr. Palatin as CEO in May, 1998 and, in July 1998, Mr.
Palatin resigned from the Board. While Mr. Palatin is no longer an officer or
director of the Parent Company, he continues to control approximately 20% of the
outstanding common shares of the Parent Company. The Partnership does not
believe that the focus of the SEC's investigation was upon the Partnership or
CCC.

   The SEC made certain findings by its Order. Among them, the SEC found that
the Parent Company, under the domination and control of Mr. Palatin,
misrepresented, through affirmative misstatements and omissions in its public
statements and filings with the SEC, transactions it had with Mr. Palatin for
the period from December, 1995 through 1997. The Parent Company neither admitted
nor denied the findings made by the SEC.

   While the Order did not impose any fine or penalty against the Parent
Company, the Parent Company is unable to predict what impact, if any, it will
have on future business or whether it will lead to future litigation involving
the Parent Company. Under the Order, the Parent Company has designated an agent
for service of process with respect to any proceedings instituted by the SEC to
enforce the Order or with respect to any future investigation of the Parent
Company by the SEC. In addition, the entry of the Order precludes the Parent
Company and persons acting on its behalf from relying upon certain protections
according to forward-looking statements by the Securities Act of 1933 and the
Securities Exchange Act of 1934 through November 14, 2002.


Item 4. Submission of Matters to a Vote of Security Holders

   Inapplicable.



                                       11
<PAGE>   12

                                             PART II


Item 5. Market for the Registrant's Common Equity and Related Stockholder
Matters

   (a) Market Information

   (a)(1)(i) The Registrant's outstanding units of limited partnership interests
are not traded on any market nor does an established public trading market exist
for such purposes.

   (a)(1)(ii) Inapplicable.

   (a)(1)(iii) Inapplicable.

   (a)(1)(iv) Inapplicable.

   (a)(1)(v) Inapplicable.

   (a)(2) Inapplicable.

   (b) Holders
<TABLE>
<CAPTION>
                                                       Number of Unit
  (b)(1)   Title of Class                      Holders as of December 31, 1999
           --------------                      -------------------------------
<S>                                            <C>
           Units of limited partnership
           interests                                      1,752
</TABLE>

   (c) Dividends

   Inapplicable. For the distributions made by the Registrant to its limited
partners, see Item 6, "Selected Financial Data."



                                       12
<PAGE>   13

Item 6. Selected Financial Data


<TABLE>
<CAPTION>
                                                     Year Ended December 31,               For the period March 29, 1996
                                         -----------------------------------------------    (Commencement of Operations)
                                            1999              1998              1997           to December 31, 1996
                                         -----------       -----------       -----------            -----------
<S>                                      <C>               <C>               <C>           <C>
Net lease revenue                        $ 2,661,170       $ 3,021,343       $ 3,050,730            $ 1,270,940

Net income                               $ 1,014,965       $ 1,435,413       $ 1,459,018            $   384,407

Net income per unit of
      limited partnership interest       $      0.56       $      0.82       $      0.84            $      0.37

Cash distributions per unit of
      limited partnership interest       $      1.54       $      1.50       $      1.46            $      0.67

At year-end:

Total assets                             $23,627,945       $25,208,928       $26,299,300            $26,000,310

Partners' capital                        $23,627,945       $25,208,928       $26,299,300            $25,641,525
</TABLE>


----------

Item 7. Management's Discussion and Analysis of Financial Condition and Results
of Operations

LIQUIDITY AND CAPITAL RESOURCES

   The Registrant's primary objective is to generate cash flow from operations
for distribution to its limited partners. Aside from the initial working capital
reserve retained from gross subscription proceeds (equal to approximately 1% of
such proceeds), the Registrant relies primarily on net lease revenue receipts to
meet this objective. No credit lines are maintained to finance working capital.

   The Registrant initiated its offering of limited partnership interests to the
public subsequent to December 28, 1995. The Registrant commenced operations on
March 29, 1996 when the minimum subscription proceeds of $2,000,000 were
obtained from at least 100 subscribers (excluding from such count, Pennsylvania
residents, the general partner, and affiliates of the general partner). On
February 3, 1997, CCC, the general partner, suspended the offer and sale of
units in the Registrant. Information concerning the suspended offer and sale of
units in the Registrant is incorporated by reference to the discussion in the
Supplement dated February 6, 1997 to the Registration Statement on Form S-1 (No.
33-98290), dated December 28, 1995 as supplemented December 27, 1996. The
offering was not resumed and terminated on December 27, 1997. At December 27,
1997, the Registrant had raised $31,993,340 through the offering of limited
partnership interests, from which it had paid brokerage commissions, reimbursed
the general partner for public offering expenses, and purchased equipment.

   On March 30, 1999, the Registrant borrowed $5,043,600 under a term loan for
the purpose of acquiring additional equipment. The term loan was obtained from
one lending source allowing the Registrant to take advantage of equipment
purchasing opportunities pursuant to the Registrant's agreement. The loan, due
to expire in the year 2006, will be repaid in full from net proceeds raised by
the Registrant in twenty-four quarterly installments.

   At December 31, 1999, the Registrant had $1,987,885 in cash and cash
equivalents, an increase of $144,073 and $755,726, respectively, from the cash
balances at December 31, 1998 and 1997. Approximately $169,000 in cash generated
from equipment sales has been reserved as part of the Registrant's December 31,
1999 cash balances. Throughout the remainder of 2000, the Registrant may use
cash generated from equipment sales to purchase and replace additional
containers which had been lost or damaged beyond repair. Amounts not used to
purchase and replace containers may be distributed to its partners.



                                       13
<PAGE>   14

   During the offering period, the Registrant did not seek a bridge loan from
any unaffiliated commercial lending source to allow the Registrant to take
advantage of equipment purchasing opportunities. The Registrant may rely upon
long-term financing to purchase a portion of its equipment. The amount of
long-term borrowing secured by the Registrant will not exceed 20% of the
aggregate purchase price of the Registrant's equipment. Once the Registrant
completes its acquisition of equipment, the Registrant intends to maintain an
ongoing reserve approximately equal to the greater of 1% of gross proceeds, or
$100,000, to meet anticipated expenses of managing the equipment. The level of
reserves will vary from time to time depending upon market conditions and the
anticipated needs of the Registrant. The Registrant will not reinvest its
revenues for the purchase of additional equipment. Pending expenditure for
operations or distribution to the partners, these amounts may be invested in
short-term, liquid investments.

   Cash distributions from operations are allocated 5% to the general partner
and 95% to the limited partners. Distributions of sales proceeds are allocated
1% to the general partner and 99% to the limited partners. This sharing
arrangement will remain in place until the limited partners have received
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 distributions will be allocated 15% to the
general partner and 85% to the limited partners, pursuant to Section 6.1(b) of
the Partnership Agreement. Cash distributions from operations to the general
partner in excess of 5% of distributable cash will be considered an incentive
fee and compensation to the general partner.

   From inception through February 29, 2000, the Registrant has distributed
$8,243,221 in cash from operations to its limited partners, or 26% of the
limited partners' original invested capital. Distributions are paid monthly
based primarily on each quarter's cash flow from operations. Monthly
distributions are also affected by periodic increases or decreases to working
capital reserves, as deemed appropriate by the general partner.

RESULTS OF OPERATIONS

1999 - 1998

   During the year, economic reforms in Asia, as well as in Latin America, have
begun to produce gradual improvement in terms of world trade, and there are
preliminary indications that containerized trade volumes from North America and
Europe to Asia, in particular, may be increasing. Intra-Asia trade, which also
had stagnated since the Asia financial crisis began nearly two years ago, has
shown increased activity in recent months. These favorable signs, however, have
yet to produce any significant positive impact on the Registrant's operating
performance.

   The primary component of the Registrant's results of operations is net lease
revenue. Net lease revenue is determined by deducting direct operating expenses,
management fees and reimbursed administrative expenses, from rental revenues
billed by the Leasing Company from the leasing of the Registrant's containers.
Net lease revenue is directly related to the size, utilization and per-diem
rental rates of the Registrant's fleet. Net lease revenue for 1999 decreased by
approximately 12%, when compared to 1998.

   Gross rental revenue, a component of net lease revenue, decreased from
$4,207,953, from December 31, 1998, to $3,733,116 for December 31, 1999, a
decrease of 11%. Dry cargo and refrigerated container average per-diem rental
rates declined approximately 9% and 3%, respectively, when compared to the prior
year. Tank container average per-diem rental rates decreased 7% when compared to
the prior year.



                                       14
<PAGE>   15

   The Registrant's fleet size, as measured in twenty-foot equivalent units
("TEU"), and average utilization rates for the years ended December 31, 1999 and
December 31, 1998 were as follows:



<TABLE>
<CAPTION>
                                                       1999           1998
                                                       ----           ----
<S>                                                    <C>            <C>
Fleet size (measured in twenty-foot equivalent
units (TEU))
    Dry cargo containers                               6,817          6,847
    Refrigerated containers                              688            688
    Tank containers                                       52             52

Average utilization rates for the year
    Dry cargo containers                                76.9%          80.5%
    Refrigerated containers                             98.5%          98.3%
    Tank containers                                     73.0%          84.4%
</TABLE>


   Rental equipment operating expenses were approximately 17% of rental revenue
during 1999 as compared to 16% during 1998. Base management fees, dependent on
the operating performance of the fleet, decreased $31,821, or approximately 11%,
during 1999 when compared to 1998.

1998 - 1997

   The primary component of the Registrant's results of operations is net lease
revenue. Net lease revenue is determined by deducting direct operating expenses,
management fees and reimbursed administrative expenses, from rental revenues
billed by the Leasing Company from the leasing of the Registrant's containers .
Net lease revenue is directly related to the size, utilization and per-diem
rental rates of the Registrant's fleet.

   Gross rental revenue, a component of net lease revenue, decreased from
$4,318,099, from December 31, 1997, to $4,207,953 for December 31, 1998, a
decrease of 3%. Dry cargo and refrigerated container average per-diem rental
rates declined approximately 3% and 1%, respectively, when compared to the prior
year. Tank container average per-diem rental rates decreased 8% when compared to
the prior year.

   The Registrant's fleet size, as measured in twenty-foot equivalent units
("TEU"), and average utilization rates for the years ended December 31, 1998 and
December 31, 1997 were as follows:



<TABLE>
<CAPTION>
                                                       1998            1997
                                                       ----            ----
<S>                                                    <C>            <C>
Fleet size (measured in twenty-foot equivalent
units (TEU))
    Dry cargo containers                               6,847          6,855
    Refrigerated containers                              688            690
    Tank containers                                       52             52

Average utilization rates for the year
    Dry cargo containers                                80.5%          84.4%
    Refrigerated containers                             98.3%          98.9%
    Tank containers                                     84.4%          90.4%
</TABLE>


   Rental equipment operating expenses were approximately 16% of rental revenue
during 1998 as compared to 1997. Base management fees, dependent on the
operating performance of the fleet, decreased $9,672, or approximately 3%,
during 1998 when compared to 1997.



                                       15
<PAGE>   16

THE CRONOS GROUP'S CREDIT FACILITY

   In March 1999, the Parent Company agreed to a fourth amendment to a credit
facility (the "Credit Facility"), under which the final maturity date was
extended to September 30, 1999. The balance outstanding on the Credit Facility
was $33,110,000 at December 31, 1998. Under the third amendment to this Credit
Facility, the Parent Company had failed to make principal payments totaling
$33,110,000, when due, on repayment dates in September 1998 and January 1999.
This Credit Facility was refinanced in August 1999, as discussed below.

   On August 2, 1999, the Parent Company refinanced approximately $47,800,000 of
its short-term and other indebtedness by establishing a loan facility (the "Loan
Facility") with MeesPierson N.V., a Dutch financial institution, as agent for
itself and First Union National Bank (collectively, the "Lenders"). The borrower
under the Loan Facility was Cronos Finance (Bermuda) Limited ("Cronos Finance"),
a newly-organized, wholly-owned, special purpose subsidiary of the Parent
Company. Cronos Finance borrowed $50,000,000 under the Loan Facility for the
purpose of acquiring containers from three other direct or indirect wholly-owned
subsidiaries (the "Sellers") of the Parent Company and paying certain fees
associated with the establishment of the Loan Facility and the fees of certain
former lenders. The Sellers utilized the cash proceeds from the sale of the
containers to Cronos Finance to repay $47,800,000 in principal due by the
Sellers to eight different creditors or groups of creditors of the Parent
Company, including all indebtedness owed to the Credit Facility.

   The Registrant was not a borrower under the Credit Facility or the Loan
Facility, and neither the containers nor the other assets of the Registrant have
been pledged as collateral under Credit Facility or the Loan Facility.


YEAR 2000

   The Registrant relies upon the financial and operational systems provided by
the Leasing Company and its affiliates, as well as the systems provided by other
independent third parties to service the three primary areas of its business:
investor processing/maintenance; container leasing/asset tracking; and
accounting/finance. Neither the Registrant nor the Leasing Company experienced
nor do they currently anticipate any material adverse effects on the
Registrant's business, results of operations or financial condition as a result
of Year 2000 issues involving internal use systems, third party products or any
of their software products. Costs incurred in preparing for Year 2000 issues
were expensed as incurred. Neither the Registrant nor the Leasing Company
anticipate any additional material costs in connection with Year 2000
uncertainties. Pursuant to the Limited Partnership Agreement, CCC or the Leasing
Company, may not seek reimbursement of data processing costs associated with the
Year 2000 program.


Item 7A. Quantitative and Qualitative Disclosures About Market Risk

   Inapplicable

Item 8. Financial Statements and Supplementary Data



                                       16




<PAGE>   17

                          INDEPENDENT AUDITORS' REPORT


The Partners
Cronos Global Income Fund XVI, L.P.


We have audited the accompanying balance sheet of Cronos Global Income Fund XVI,
L.P. (the "Partnership") as of December 31, 1999, and the related statements of
operations, partners' capital, and cash flows for the year then ended. These
financial statements are the responsibility of the Partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audit.

We conducted our audit in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.

In our opinion, such financial statements present fairly, in all material
respects, the financial position of the Partnership at December 31, 1999, and
the results of its operations and its cash flows for the year then ended in
conformity with accounting principles generally accepted in the United States of
America.


/s/ Deloitte & Touche LLP

San Francisco, CA
February 25, 2000



                                       17
<PAGE>   18

                    REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS


The Partners
Cronos Global Income Fund XVI, L.P.


We have audited the accompanying balance sheet of Cronos Global Income Fund XVI,
L.P., as of December 31, 1998, and the related statements of operations,
partners' capital, and cash flows for each of the two years in the period ended
December 31, 1998. These financial statements are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on these
financial statements based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Cronos Global Income Fund XVI,
L.P., as of December 31, 1998, and the results of its operations and its cash
flows for each of the two years in the period ended December 31, 1998, in
conformity with generally accepted accounting principles.

                                            /s/ Moore Stephens, P.C.
                                            Certified Public Accountants


New York, New York
March 5, 1999



                                       18
<PAGE>   19

                       CRONOS GLOBAL INCOME FUND XVI, L.P.

                                 BALANCE SHEETS

                           DECEMBER 31, 1999 AND 1998



<TABLE>
<CAPTION>
                                                                         1999                1998
                                                                     ------------        ------------
                 Assets
<S>                                                                  <C>                 <C>
Current assets:
   Cash and cash equivalents, includes $1,987,785 in 1999 and
      $1,843,712 in 1998 in interest-bearing accounts (note 3)       $  1,987,885        $  1,843,812
   Net lease receivables due from Leasing Company
      (notes 1 and 5)                                                     513,262             532,067
                                                                     ------------        ------------

         Total current assets                                           2,501,147           2,375,879
                                                                     ------------        ------------

Container rental equipment, at cost                                    26,618,929          26,700,728
   Less accumulated depreciation (note 1)                               5,542,131           3,998,314
                                                                     ------------        ------------
      Net container rental equipment                                   21,076,798          22,702,414
                                                                     ------------        ------------

Other assets                                                               50,000                  --
Organizational costs, net (note 4)                                             --             130,635
                                                                     ------------        ------------

         Total assets                                                $ 23,627,945        $ 25,208,928
                                                                     ============        ============

            Partners' Capital

Partners' capital (deficit):
   General partner                                                   $    (12,730)       $     (5,349)
   Limited partners (note 9)                                           23,640,675          25,214,277
                                                                     ------------        ------------

         Total partners' capital                                     $ 23,627,945        $ 25,208,928
                                                                     ============        ============
</TABLE>

   The accompanying notes are an integral part of these financial statements.


                                       19
<PAGE>   20

                       CRONOS GLOBAL INCOME FUND XVI, L.P.

                            STATEMENTS OF OPERATIONS

              FOR THE YEARS ENDED DECEMBER 31, 1999, 1998 AND 1997


<TABLE>
<CAPTION>
                                                         1999             1998             1997
                                                      ----------       ----------       ----------
<S>                                                   <C>              <C>              <C>
Net lease revenue (notes 1 and 7)                     $2,661,170       $3,021,343       $3,050,730

Other operating expenses:
  Depreciation and amortization (notes 1 and 4)        1,689,585        1,612,071        1,600,826
  Other general and administrative expenses               53,798           65,020           70,928
                                                      ----------       ----------       ----------

                                                       1,743,383        1,677,091        1,671,754
                                                      ----------       ----------       ----------

    Income from operations                               917,787        1,344,252        1,378,976

Other income:
  Interest income                                         88,664           80,849           72,994
  Net gain on disposal of equipment                        8,514           10,312            7,048
                                                      ----------       ----------       ----------
                                                          97,178           91,161           80,042
                                                      ----------       ----------       ----------

    Net income                                        $1,014,965       $1,435,413       $1,459,018
                                                      ==========       ==========       ==========

Allocation of net income:
  General partner                                     $  122,416       $  125,593       $  119,264
  Limited partners                                       892,549        1,309,820        1,339,754
                                                      ----------       ----------       ----------

                                                      $1,014,965       $1,435,413       $1,459,018
                                                      ==========       ==========       ==========

Limited partners' per unit share of net income        $     0.56       $     0.82       $     0.84
                                                      ==========       ==========       ==========
</TABLE>

   The accompanying notes are an integral part of these financial statements.

                                       20
<PAGE>   21

                      CRONOS GLOBAL INCOME FUND XVI, L.P.

                         STATEMENTS OF PARTNERS' CAPITAL

              FOR THE YEARS ENDED DECEMBER 31, 1999, 1998 AND 1997


<TABLE>
<CAPTION>
                                                            Limited            General
                                                            Partners           Partner            Total
                                                          ------------        ---------        ------------
<S>                                                       <C>                 <C>              <C>
Balances at December 31, 1996                             $ 25,643,345        $  (1,820)       $ 25,641,525

Proceeds from sale of partnership units                      1,931,960               --           1,931,960

Less:
   Commissions on sale of limited partnership units           (193,196)              --            (193,196)
   Offering costs on sale of limited partnership               (99,958)              --             (99,958)
   units

Net income                                                   1,339,754          119,264           1,459,018

Cash distributions                                          (2,317,952)        (122,097)         (2,440,049)
                                                          ------------        ---------        ------------

Balances at December 31, 1997                               26,303,953           (4,653)         26,299,300

Net income                                                   1,309,820          125,593           1,435,413

Cash distributions                                          (2,399,496)        (126,289)         (2,525,785)
                                                          ------------        ---------        ------------

Balances at December 31, 1998                               25,214,277           (5,349)         25,208,928

Net income                                                     892,549          122,416           1,014,965

Cash distributions                                          (2,466,151)        (129,797)         (2,595,948)
                                                          ------------        ---------        ------------

Balances at December 31, 1999                             $ 23,640,675        $ (12,730)       $ 23,627,945
                                                          ============        =========        ============
</TABLE>

   The accompanying notes are an integral part of these financial statements.

                                       21
<PAGE>   22

                       CRONOS GLOBAL INCOME FUND XVI, L.P.

                            STATEMENTS OF CASH FLOWS

              FOR THE YEARS ENDED DECEMBER 31, 1999, 1998 AND 1997


<TABLE>
<CAPTION>
                                                              1999               1998               1997
                                                           -----------        -----------        -----------
<S>                                                        <C>                <C>                <C>
Cash flows from operating activities:
   Net income                                              $ 1,014,965        $ 1,435,413        $ 1,459,018
   Adjustments to reconcile net income to net cash
     provided by operating activities:
         Depreciation and amortization                       1,689,585          1,612,071          1,600,826
         Net gain on disposal of equipment                      (8,514)           (10,312)            (7,048)
         Decrease (increase) in net lease
          receivables due from Leasing Company                 (24,760)            20,548           (335,572)
                                                           -----------        -----------        -----------

           Total adjustments                                 1,656,311          1,622,307          1,258,206
                                                           -----------        -----------        -----------

           Net cash provided by operating activities         2,671,276          3,057,720          2,717,224
                                                           -----------        -----------        -----------

Cash flows from (used in) investing activities:
   Proceeds from sale of container rental equipment             68,745             79,718             19,156
   Purchases of container rental equipment                          --                 --         (2,339,370)
   Acquisition fees paid to general partner                         --                 --           (117,116)
                                                           -----------        -----------        -----------

           Net cash provided by (used in) investing
             activities                                         68,745             79,718         (2,437,330)
                                                           -----------        -----------        -----------

Cash flows used in financing activities:
   Capital contributions                                            --                 --          1,931,060
   Underwriting commissions                                         --                 --           (193,196)
   Offering and organizational expenses                             --                 --           (101,434)
   Distributions to partners                                (2,595,948)        (2,525,785)        (2,440,049)
                                                           -----------        -----------        -----------

          Net cash used in financing activities             (2,595,948)        (2,525,785)          (803,619)
                                                           -----------        -----------        -----------

Net increase (decrease) in cash and cash equivalents           144,073            611,653           (523,725)

Cash and cash equivalents at beginning of year               1,843,812          1,232,159          1,755,884
                                                           -----------        -----------        -----------

Cash and cash equivalents at end of year                   $ 1,987,885        $ 1,843,812        $ 1,232,159
                                                           ===========        ===========        ===========
</TABLE>

   The accompanying notes are an integral part of these financial statements.

                                       22
<PAGE>   23

                       CRONOS GLOBAL INCOME FUND XVI, L.P.

                          NOTES TO FINANCIAL STATEMENTS

                        DECEMBER 31, 1999, 1998 AND 1997



(1)  Summary of Significant Accounting Policies

     (a) Nature of Operations

         Cronos Global Income Fund XVI, L.P. (the "Partnership") is a limited
         partnership organized under the laws of the State of California on
         September 1, 1995, for the purpose of owning and leasing marine cargo
         containers, special purpose containers and container related equipment
         worldwide to ocean carriers. To this extent, the Partnership's
         operations are subject to the fluctuations of world economic and
         political conditions. Such factors may affect the pattern and levels of
         world trade. The Partnership believes that the profitability of, and
         risks associated with, leases to foreign customers is generally the
         same as those of leases to domestic customers. The Partnership's leases
         generally require all payments to be made in United States currency.

         Cronos Capital Corp. ("CCC") is the general partner and, with its
         affiliate Cronos Containers Limited (the "Leasing Company"), manages
         the business of the Partnership. CCC and the Leasing Company also
         manage the container leasing business for other partnerships affiliated
         with the general partner. The Partnership shall continue until December
         31, 2015, unless sooner terminated upon the occurrence of certain
         events.

         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, the
         general partner, and all affiliates of the general partner). 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.

     (b) Leasing Company and Leasing Agent Agreement

         The Partnership has entered into a Leasing Agent Agreement whereby the
         Leasing Company has the responsibility to manage the leasing operations
         of all equipment owned by the Partnership. Pursuant to the Agreement,
         the Leasing Company is responsible for leasing, managing and re-leasing
         the Partnership's containers to ocean carriers 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 Company to
         use the containers owned by the Partnership, together with other
         containers owned or managed by the Leasing Company and its affiliates,
         as part of a single fleet operated without regard to ownership. Since
         the Leasing Agent Agreement meets the definition of an operating lease
         in Statement of Financial Accounting Standards (SFAS) No. 13, it is
         accounted for as a lease under which the Partnership is lessor and the
         Leasing Company is lessee.

         The Leasing Agent Agreement generally provides that the Leasing Company
         will make payments to the Partnership based upon rentals collected from
         ocean carriers after deducting direct operating expenses and management
         fees to CCC and the Leasing Company. The Leasing Company 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 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.
         Most containers are leased to ocean carriers under master leases;
         leasing agreements with fixed payment terms are not material to the
         financial statements. Since there are no material minimum lease
         rentals, no disclosure of minimum lease rentals is provided in these
         financial statements.



                                       23
<PAGE>   24

                       CRONOS GLOBAL INCOME FUND XVI, L.P.

                          NOTES TO FINANCIAL STATEMENTS


     (c) Concentrations of Credit Risk

         The Partnership's financial instruments that are exposed to
         concentrations of credit risk consist primarily of cash, cash
         equivalents and net lease receivables due from the Leasing Company. See
         note 3 for further discussion regarding the credit risk associated with
         cash and cash equivalents.

         Net lease receivables due from the Leasing Company (see notes 1(b) and
         5 for discussion regarding net lease receivables) subject the
         Partnership to a significant concentration of credit risk. These net
         lease receivables, representing rentals collected from ocean carriers
         after deducting direct operating expenses and management fees to CCC
         and the Leasing Company, are remitted by the Leasing Company to the
         Partnership three to four times per month. The Partnership has
         historically never incurred a loss associated with the collectability
         of unremitted net lease receivables due from the Leasing Company.

     (d) Basis of Accounting

         The Partnership utilizes the accrual method of accounting. Net lease
         revenue is recorded by the Partnership in each period based upon its
         leasing agent agreement with the Leasing Company. Net lease revenue is
         generally dependent upon operating lease rentals from operating lease
         agreements between the Leasing Company and its various lessees, less
         direct operating expenses and management fees due in respect of the
         containers specified in each operating lease agreement.

         The financial statements are prepared in conformity with accounting
         principles generally accepted in the United States (GAAP), which
         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
         reporting period. Actual results could differ from those estimates.

     (e) Allocation of Net Income and Partnership Distributions

         Net income have been allocated between general and limited partners in
         accordance with the Partnership Agreement.

         Actual cash distributions differ from the allocations of net income
         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 the general partner.
         Distributions of sales proceeds are allocated 99% to the limited
         partners and 1% to the general partner. 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
         the general partner. Cash distributions for the first 8% are charged to
         partners' capital. Cash distributions from operations to the general
         partner in excess of 5% of distributable cash will be considered an
         incentive fee and will be recorded as compensation to the general
         partner.

     (f) Acquisition Fees

         Pursuant to the Partnership Agreement, acquisition fees paid to CCC are
         based on 5% of the equipment purchase price. These fees are capitalized
         and included in the cost of the rental equipment. The fees are payable
         in full from gross proceeds raised from the sale of limited partnership
         units.



                                       24
<PAGE>   25

                       CRONOS GLOBAL INCOME FUND XVI, L.P.

                          NOTES TO FINANCIAL STATEMENTS


     (g) Container Rental Equipment

         In accordance with SFAS No. 121, "Accounting for the Impairment of
         Long-Lived Assets and for Long-Lived Assets to Be Disposed Of",
         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.
         Depreciation policies are also evaluated to determine whether
         subsequent events and circumstances warrant revised estimates of useful
         lives. There were no reductions to the carrying value of container
         rental equipment during 1999, 1998, and 1997.

         Container rental equipment is depreciated over a twelve-year life on a
         straight line basis to its salvage value, estimated to be 30%.

     (h) Offering Costs

         Underwriting commissions of 10% on the gross proceeds from sale of
         limited partnership units (not applicable to certain sales outside
         California) and other offering costs were deducted in the determination
         of net limited partnership contributions. The commissions were paid to
         Cronos Securities Corp., a wholly-owned subsidiary of CCC, and to other
         broker/dealers who participated in the offering.

     (i) Income Taxes

         The Partnership is not subject to income taxes, consequently no
         provision for income taxes has been made. The Partnership files federal
         and state an annual information tax returns, prepared on the accrual
         basis of accounting. Taxable income or loss is reportable by the
         partners individually.

     (j) Financial Statement Presentation

         The Partnership has determined that, for accounting purposes, the
         Leasing Agent Agreement is a lease, and the receivables, payables,
         gross revenues and operating expenses attributable to the containers
         managed by the Leasing Company are, for accounting purposes, those of
         the Leasing Company and not of the Partnership. Consequently, the
         Partnership's balance sheets and statements of operations display the
         payments to be received by the Partnership from the Leasing Company as
         the Partnership's receivables and revenues.


(2)  Operating Segment

     The Financial Accounting Standards Board has issued SFAS No. 131,
     "Disclosures about Segments of an Enterprise and Related Information",
     which changes the way public business enterprises report financial and
     descriptive information about reportable operating segments. An 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, after considering the requirements of
     SFAS No. 131, that as such it has a single reportable operating segment.



                                       25
<PAGE>   26

                       CRONOS GLOBAL INCOME FUND XVI, L.P.

                          NOTES TO FINANCIAL STATEMENTS


(2) Operating Segment - (continued)

    The Partnership derives revenues from dry cargo containers, refrigerated
    containers and tank containers. As of December 31, 1999, the Partnership
    owned 3,815 twenty-foot, 1,045 forty-foot and 456 forty-foot high-cube
    marine dry cargo containers, as well as 90 twenty-foot and 299 forty-foot
    refrigerated cargo containers, and 52 twenty-four thousand-liter tanks. A
    summary of gross lease revenue, by product, for the years ended December 31,
    1999, 1998 and 1997 follows:


<TABLE>
<CAPTION>
                                 1999             1998            1997
                              ----------       ----------       ----------
<S>                           <C>              <C>              <C>
Dry cargo containers          $2,068,065       $2,459,658       $2,590,322
Refrigerated containers        1,493,838        1,521,647        1,486,014
Tank containers                  171,213          226,648          241,763
                              ----------       ----------       ----------

Total                         $3,733,116       $4,207,953       $4,318,099
                              ==========       ==========       ==========
</TABLE>


     Due to the Partnership's lack of information regarding the physical
     location of its fleet of containers when on lease in the global shipping
     trade, it is impracticable to provide the geographic area information
     required by SFAS No. 131.

     One sub-lessee of the Leasing Company contributed approximately 15% or
     $545,740 of the Partnership's rental revenue billings earned during 1999.
     One lessee contributed approximately 13% of the rental revenue billings
     earned during 1998 and 1997.


(3)  Cash and Cash Equivalents

     Cash equivalents include highly-liquid investments with a maturity of three
     months or less on their acquisition date. Cash equivalents are carried at
     cost which approximates fair value. The Partnership maintains its cash and
     cash equivalents in accounts which, at times, may exceed federally insured
     limits. The Partnership has not experienced any losses in such accounts and
     believes it is not exposed to any significant credit risk. The Partnership
     places its cash equivalents in investment grade, short-term debt
     instruments and limits the amount of credit exposure with any one
     commercial issuer.


(4)  Organizational Costs

     The Partnership incurred $249,799 in organizational costs during its
     offering period. These costs were fully amortized as of December 31, 1999.



                                       26
<PAGE>   27

                       CRONOS GLOBAL INCOME FUND XVI, L.P.

                          NOTES TO FINANCIAL STATEMENTS


(5)  Net Lease Receivables Due from Leasing Company

     Net lease receivables due from the Leasing Company are determined by
     deducting direct operating payables and accrued expenses, base management
     fees payable, and reimbursed administrative expenses payable to CCC and its
     affiliates from the rental billings payable by the Leasing Company to the
     Partnership under operating leases to ocean carriers for the containers
     owned by the Partnership. Net lease receivables at December 31, 1999 and
     1998 were as follows:


<TABLE>
<CAPTION>
                                                   December 31,   December 31,
                                                       1999           1998
                                                     --------       --------
<S>                                                <C>            <C>
Gross lease receivables                              $869,797       $988,820
Less:
Direct operating payables and accrued expenses        223,001        271,115
Damage protection reserve (note 6)                     25,021         37,905
Base management fees payable                           68,101         66,324
Reimbursed administrative expenses                     16,942         18,021
Allowance for doubtful accounts                        23,470         63,388
                                                     --------       --------

Net lease receivables                                $513,262       $532,067
                                                     ========       ========
</TABLE>


(6)  Damage Protection Plan

     The Leasing Company offers a repair service to several lessees of the
     Partnership's containers, whereby the lessee pays an additional rental fee
     for the convenience of having the Partnership incur the repair expense for
     containers damaged while on lease. This fee is recorded as revenue when
     earned according to the terms of the rental contract. An accrual has been
     recorded to provide for the estimated costs incurred by this service. This
     accrual is a component of net lease receivables due from the Leasing
     Company (see note 5). The Partnership is not responsible in the event
     repair costs exceed predetermined limits, or for repairs that are required
     for damages not defined by the damage protection plan agreement.


(7)  Net Lease Revenue

     Net lease revenue is determined by deducting direct operating expenses,
     base management fees and reimbursed administrative expenses to CCC and its
     affiliates from the rental revenue billed by the Leasing Company under
     operating leases to ocean carriers for the containers owned by the
     Partnership. Net lease revenue for 1999, 1998 and 1997:

<TABLE>
<CAPTION>
                                                      1999            1998             1997
                                                   ----------       ----------       ----------
<S>                                                <C>              <C>              <C>
Rental revenue                                     $3,733,116       $4,207,953       $4,318,099
Less:
Rental equipment operating expenses                   636,329          664,018          708,874
Base management fees (note 8)                         258,283          290,104          299,776
Reimbursed administrative expenses (note 8):
        Salaries                                       92,865          110,765          118,528
        Other payroll related expenses                 15,861           19,139           22,107
        General administrative expenses                68,608          102,584          118,084
                                                   ----------       ----------       ----------

                                                   $2,661,170       $3,021,343       $3,050,730
                                                   ==========       ==========       ==========
</TABLE>



                                       27
<PAGE>   28

                       CRONOS GLOBAL INCOME FUND XVI, L.P.

                          NOTES TO FINANCIAL STATEMENTS


(8)  Compensation to General Partner and its Affiliates

     Base management fees are equal to 7% of gross lease revenues attributable
     to operating leases pursuant to the Partnership Agreement. Reimbursed
     administrative expenses are equal to the costs expended by CCC and its
     affiliates for services necessary for the prudent operation of the
     Partnership pursuant to the Partnership Agreement. Underwriting commissions
     are equal to 10% of the gross subscription proceeds, less commissions to
     other broker/dealers. The following compensation was paid or will be paid
     by the Partnership to CCC or its affiliates:


<TABLE>
<CAPTION>
                                                  1999           1998           1997
                                                --------       --------       --------
<S>                                             <C>            <C>            <C>
Base management fees                            $258,283       $290,104       $299,776
Reimbursed administrative expenses               177,334        232,488        258,719
Acquisition fees                                      --             --        117,116
Commission on sale of limited partnership
units                                                 --             --         38,639
                                                --------       --------       --------

                                                $435,617       $522,592       $714,250
                                                ========       ========       ========
</TABLE>


(9)  Limited Partners' Capital

     The limited partners' per unit share of capital at December 31, 1999, 1998
     and 1997 was $15, $16 and $16, respectively. This is calculated by dividing
     the limited partners' capital at the end of 1999, 1998 and 1997 by
     1,599,667, the total number of limited partnership units. The weighted
     average number of partnership units used in determining the limited
     partners' per unit share of net earnings at December 31, 1999 and 1998 was
     1,599,667; and 1,593,058 at December 31, 1997.


(10) The Cronos Group

     In March 1999, the Parent Company agreed to a fourth amendment to a credit
     facility (the "Credit Facility"), under which the final maturity date was
     extended to September 30, 1999. The balance outstanding on the Credit
     Facility was $33,110,000 at December 31, 1998. Under the third amendment to
     this Credit Facility, the Parent Company had failed to make principal
     payments totaling $33,110,000, when due, on repayment dates in September
     1998 and January 1999. This Credit Facility was refinanced in August 1999,
     as discussed below.

     On August 2, 1999, the Parent Company refinanced approximately $47,800,000
     of its short-term and other indebtedness by establishing a loan facility
     (the "Loan Facility") with MeesPierson N.V., a Dutch financial institution,
     as agent for itself and First Union National Bank (collectively, the
     "Lenders"). The borrower under the Loan Facility was Cronos Finance
     (Bermuda) Limited ("Cronos Finance"), a newly-organized, wholly-owned,
     special purpose subsidiary of the Parent Company. Cronos Finance borrowed
     $50,000,000 under the Loan Facility for the purpose of acquiring containers
     from three other direct or indirect wholly-owned subsidiaries (the
     "Sellers") of the Parent Company and paying certain fees associated with
     the establishment of the Loan Facility and the fees of certain former
     lenders. The Sellers utilized the cash proceeds from the sale of the
     containers to Cronos Finance to repay $47,800,000 in principal due by the
     Sellers to eight different creditors or groups of creditors of the Parent
     Company, including all indebtedness owed to the Credit Facility.

     The Registrant was not a borrower under the Credit Facility or the Loan
     Facility, and neither the containers nor the other assets of the Registrant
     have been pledged as collateral under Credit Facility or the Loan Facility.


                            ************************



                                       28
<PAGE>   29

Item 9. Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure

   Inapplicable.



                                       29
<PAGE>   30

                                    PART III


Item 10. Directors and Executive Officers of the Registrant

   The Registrant, as such, has no officers or directors, but is managed by CCC,
the general partner. The officers and directors of CCC at March 30, 2000, are as
follows:

<TABLE>
<CAPTION>
     Name                                              Office
     ----                                              ------
<S>                             <C>
Dennis J. Tietz                 President, Chief Executive Officer, and Director
Peter J. Younger                Treasurer, Principal Accounting Officer, and Director
Elinor A. Wexler                Vice President/Administration and Secretary, and Director
John P. McDonald                Vice President/Sales, and Director
John M. Foy                     Director
</TABLE>

   DENNIS J. TIETZ Mr. Tietz, 47, as President and Chief Executive Officer, is
responsible for the general management of CCC. Mr. Tietz was appointed Chief
Executive Officer of The Cronos Group, indirect corporate parent of CCC, in
December 1998 and elected Chairman of the Board in March 1999. Mr. Tietz is also
President and a director of Cronos Securities Corp. From 1986 until August 1992,
Mr. Tietz was responsible for the organization, marketing and after-market
support of CCC's investment programs. Mr. Tietz was a regional manager for CCC,
responsible for various container leasing activities in the U.S. and Europe from
1981 to 1986. Prior to joining CCC in December 1981, Mr. Tietz was employed by
Trans Ocean Leasing Corporation as Regional Manager based in Houston, with
responsibility for all leasing and operational activities in the U.S. Gulf.

   Mr. Tietz holds a B.S. degree in Business Administration from San Jose State
University and is a Registered Securities Principal with the NASD.

   PETER J. YOUNGER Mr. Younger, 43, was elected Treasurer and Principal
Accounting Officer in 1998. Mr. Younger joined the Board of Directors of CCC in
June 1997. See key management personnel of the Leasing Company for further
information.

   ELINOR A. WEXLER Ms. Wexler, 51, was elected Vice President - Administration
and Secretary of CCC in August 1992. Ms. Wexler joined the Board of Directors of
CCC in June 1997. Ms. Wexler has been employed by the General Partner since
1987, and is responsible for investor services, compliance and securities
registration. From 1983 to 1987, Ms. Wexler was Manager of Investor Services for
The Robert A. McNeil Corporation, a real estate syndication company, in San
Mateo, California. From 1971 to 1983, Ms. Wexler held various positions,
including securities trader and international research editor, with Nikko
Securities Co., International, based in San Francisco.

   Ms. Wexler attended the University of Oregon, Portland State University and
the Hebrew University of Jerusalem, Israel. Ms. Wexler is also Vice President
and Secretary of Cronos Securities Corp. and a Registered Principal with the
NASD.

   JOHN P. MCDONALD Mr. McDonald, 39, was elected Vice President - National
Sales Manager of CCC in August 1992, with responsibility for marketing CCC's
investment programs. Mr. McDonald joined the Board of Directors of CCC in
October 1997. Since 1988, Mr. McDonald had been Regional Marketing Manager for
the Southwestern U.S. From 1983 to 1988, Mr. McDonald held a number of container
leasing positions with CCC, the most recent of which was as Area Manager for
Belgium and the Netherlands, based in Antwerp.

   Mr. McDonald holds a B.S. degree in Business Administration from Bryant
College, Rhode Island. Mr. McDonald is also a Vice President of Cronos
Securities Corp.

   JOHN M. FOY Mr. Foy, 54, was elected to the Board of Directors of CCC in
April 1999. See key management personnel of the Leasing Company for further
information.



                                       30
<PAGE>   31

   The key management personnel of the Leasing Company at March 30, 2000, were
as follows:

<TABLE>
<CAPTION>
     Name                                    Title
     ----                                    -----
<S>                          <C>
Peter J. Younger             Vice President/Chief Financial Officer
John M. Foy                  Vice President/Americas
Nico Sciacovelli             Vice President/Europe, Middle East and Africa
John C. Kirby                Vice President/Operations
</TABLE>

     PETER J. YOUNGER Mr. Younger, 43, was elected to the Board of Directors
of The Cronos Group on January 13, 2000. Mr. Younger will serve as a director
until the annual meeting in 2001 and his successor is elected. Mr. Younger was
appointed as Executive Vice President of The Cronos Group in April 1999 and its
Chief Financial Officer in March 1997. From 1991 to 1997, Mr. Younger served as
Vice President of Finance for the Leasing Company, located in the UK. From 1987
to 1991 Mr. Younger served as Vice President and Controller for CCC in San
Francisco. Prior to 1987, Mr. Younger was a certified public accountant and a
principal with the accounting firm of Johnson, Glaze and Co. in Salem, Oregon.
Mr. Younger holds a B.S. degree in Business Administration from Western Baptist
College, Salem, Oregon.

   JOHN M. FOY Mr. Foy, 54, is directly responsible for the Leasing Company's
lease marketing and operations in North America, Central America, and South
America, and is based in San Francisco. From 1985 to 1993, Mr. Foy was Vice
President/Pacific with responsibility for dry cargo container lease marketing
and operations in the Pacific Basin. From 1977 to 1985 Mr. Foy was Vice
President of Marketing for Nautilus Leasing Services in San Francisco with
responsibility for worldwide leasing activities. From 1974 to 1977, Mr. Foy was
Regional Manager for Flexi-Van Leasing, a container lessor, with responsibility
for container leasing activities in the Western United States. Mr. Foy holds a
B.A. degree in Political Science from University of the Pacific, and a Bachelor
of Foreign Trade from Thunderbird Graduate School of International Management.

   NICO SCIACOVELLI Mr. Sciacovelli, 50, was elected Vice President - Europe,
Middle East and Africa in June 1997. Mr. Sciacovelli is directly responsible for
the Leasing Company's lease marketing and operations in Europe, the Middle East
and Africa and is based in Italy. Since joining Cronos in 1983, Mr. Sciacovelli
served as Area Director and Area Manager for Southern Europe. Prior to joining
Cronos, Mr. Sciacovelli was a Sales Manager at Interpool Ltd.

   JOHN C. KIRBY Mr. Kirby, 46, is responsible for container purchasing,
contract and billing administration, container repairs and leasing-related
systems, and is based in the United Kingdom. Mr. Kirby joined CCC in 1985 as
European Technical Manager and advanced to Director of European Operations in
1986, a position he held with CCC, and later the Leasing Company, until his
promotion to Vice President/Operations of the Leasing Company in 1992. From 1982
to 1985, Mr. Kirby was employed by CLOU Containers, a container leasing company,
as Technical Manager based in Hamburg, Germany. Mr. Kirby acquired a
professional engineering qualification from the Mid-Essex Technical College in
England.



                                       31
<PAGE>   32

Item 11. Executive Compensation

   The Registrant commenced monthly distributions to its partners (general and
limited) from distributable cash from operations beginning in the second quarter
of 1996. Such distributions are allocated 95% to the limited partners and 5% to
the general partner. Sales proceeds will be allocated 99% to the limited
partners and 1% to the general partner. The allocations will remain in effect
until such time as the limited partners have received from the Registrant
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 the general partner.

   The Registrant will not pay or reimburse CCC or the Leasing Company for any
remuneration payable by them to their executive officers, directors or any other
controlling persons. However, the Registrant will reimburse the general partner
and the Leasing Company for certain services pursuant to the Partnership
Agreement. These services include but are not limited to (i) salaries and
related salary expenses for services which could be performed directly for the
Registrant by independent parties, such as legal, accounting, transfer agent,
data processing, operations, communications, duplicating and other such
services; (ii) performing administrative services necessary to the prudent
operations of the Registrant.

   The following table sets forth the fees the Registrant paid (on a cash basis)
to CCC or the Leasing Company ("CCL") for the year ended December 31, 1999.


<TABLE>
<CAPTION>
                                                                                    Cash Fees and
                 Name                             Description                       Distributions
                 ----                             -----------                       -------------
<S>        <C>                  <C>                                                 <C>
   1)                           Base management fees - equal to 7% of gross
                                lease revenues attributable to operating leases
                                pursuant to Section 4.3 of the Limited
           CCL                  Partnership Agreement                                $  272,859


   2)                           Reimbursed administrative expenses equal to the
                                costs expended by CCC and it's affiliates for
                                services necessary to the prudent operation of
           CCC                  the Registrant pursuant to Section 4.4 of the        $   9,988
           CCL                  Limited Partnership Agreement                        $ 168,425

   3)                           Interest in Fund - 5% of distributions of
                                distributable cash for any quarter pursuant to
           CCC                  Section 6.1 of the Limited Partnership Agreement     $ 129,797
</TABLE>



                                       32
<PAGE>   33

Item 12. Security Ownership of Certain Beneficial Owners and Management -
(Continued)

   (a) Security Ownership of Certain Beneficial Owners

   There is no person or "group" of persons known to management of CCC to be the
beneficial owner of more than five percent of the outstanding units of limited
partnership interests of the Registrant.

   (b) Security Ownership of Management

   The Registrant has no directors or officers. It is managed by CCC. CCC owns
five units, representing 0.0003% of the total amount of units outstanding.

   (c) Changes in Control

   Inapplicable.


Item 13. Certain Relationships and Related Transactions

   (a) Transactions with Management and Others

   The Registrant's only transactions with management and other related parties
during 1999 were limited to those fees paid or amounts committed to be paid (on
an annual basis) to CCC, the general partner, and its affiliates. See Item 11,
"Executive Compensation," herein.

   (b) Certain Business Relationships

   Inapplicable.

   (c) Indebtedness of Management

   Inapplicable.

   (d) Transactions with Promoters

   Inapplicable.



                                       33
<PAGE>   34

                                    PART IV


Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K

<TABLE>
<CAPTION>
                                                                                               Page
                                                                                               ----
<S>                                                                                            <C>
   (a)1.       Financial Statements

        Independent Auditors' Report............................................................17


        Report of Independent Public Accounts...................................................18



   The following financial statements of the Registrant are included in Part II, Item 8:


        Balance Sheets - as of December 31, 1999 and 1998.......................................19


        Statements of Operations - for the years ended December 31, 1999, 1998 and 1997.........20


        Statements of Partners' Capital - for the years ended December 31, 1999, 1998 and 1997..21


        Statements of Cash Flows - for the years ended December 31, 1999, 1998 and 1997.........22


        Notes to Financial Statements...........................................................23
</TABLE>


   All schedules are omitted as the information is not required or the
information is included in the financial statements or notes thereto.



                                       34
<PAGE>   35

   (a)3. Exhibits


<TABLE>
<CAPTION>
            Exhibit
              No.                       Description                         Method of Filing
              ---                       -----------                         ----------------
<S>                    <C>                                                  <C>
             3(a)      Limited Partnership Agreement of the Registrant,     *
                       amended and restated as of December 28, 1995

             3(b)      Certificate of Limited Partnership of the            **
                       Registrant

             10        Form of Leasing Agent Agreement with Cronos          ***
                       Containers Limited

             27        Financial Data Schedule                              Filed with this
                                                                            document
</TABLE>


   (b)  Reports on Form 8-K

        No reports on Form 8-K were filed by the Registrant during the quarter
        ended December 31, 1999.



----------

*       Incorporated by reference to Exhibit "A" to the Prospectus of the
        Registrant 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)



                                       35
<PAGE>   36

                                   SIGNATURES



        Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned thereunto duly authorized.



                                            CRONOS GLOBAL INCOME FUND XVI, L.P.


                                            By   Cronos Capital Corp.
                                                 The General Partner




                                            By   /s/  Dennis J. Tietz
                                               ---------------------------------
                                                 Dennis J. Tietz
                                                 President and Director of
                                                 Cronos Capital Corp. ("CCC")
                                                 Principal Executive Officer of
                                                 CCC




Date:  March 30, 2000


   Pursuant to the requirement of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of Cronos
Capital Corp., the managing general partner of the Registrant, in the capacities
and on the dates indicated:

<TABLE>
<CAPTION>
          Signature                             Title                          Date
<S>                                   <C>                                  <C>

 /s/ Dennis J. Tietz                   President and Director of           March 30, 2000
--------------------------              Cronos Capital Corp.
                                         ("CCC") (Principal
Dennis J. Tietz                               Executive
                                           Officer of CCC)

 /s/ Peter J. Younger                 Treasurer and Director of            March 30, 2000
--------------------------              Cronos Capital Corp.
Peter J. Younger                         ("CCC") (Principal
                                      Financial and Accounting
                                           Officer of CCC)

 /s/ John P. McDonald                   National Sales Manager
--------------------------                and Director of                  March 30, 2000
John P. McDonald                        Cronos Capital Corp.
</TABLE>




                            SUPPLEMENTAL INFORMATION

   The Registrant's annual report will be furnished to its limited partners on
or about April 30, 2000. Copies of the annual report will be concurrently
furnished to the Commission for information purposes only, and shall not be
deemed to be filed with the Commission.



                                       36
<PAGE>   37

                                  EXHIBIT INDEX


<TABLE>
<CAPTION>
 Exhibit
   No.                       Description                         Method of Filing
   ---                       -----------                         ----------------
<S>         <C>                                                  <C>
  3(a)      Limited Partnership Agreement of the Registrant,     *
            amended and restated as of December 28, 1995

  3(b)      Certificate of Limited Partnership of the            **
            Registrant

  10        Form of Leasing Agent Agreement with Cronos          ***
            Containers Limited

  27        Financial Data Schedule                              Filed with this
                                                                 document
</TABLE>


-------------

*       Incorporated by reference to Exhibit "A" to the Prospectus of the
        Registrant 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)