10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

RQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2013

or

oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from__________ to ___________

Commission File Number: 001-32162

CORPORATE PROPERTY ASSOCIATES 16 – GLOBAL INCORPORATED

(Exact name of registrant as specified in its charter)

Maryland	80-0067704
(State of incorporation)	(I.R.S. Employer Identification No.)
50 Rockefeller Plaza
New York, New York	10020
(Address of principal executive offices)	(Zip Code)

Investor Relations (212) 492-8920

(212) 492-1100

(Registrant’s telephone numbers, including area code)

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 R No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes R No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o	Accelerated filer o	Non-accelerated filer R	Smaller reporting company o
		(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes o No R

Registrant has 204,537,575 shares of common stock, $0.001 par value, outstanding at May 1, 2013.

INDEX

	Page No.
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Consolidated Balance Sheets	2
Consolidated Statements of Income	3
Consolidated Statements of Comprehensive (Loss) Income	4
Consolidated Statements of Cash Flows	5
Notes to Consolidated Financial Statements	6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3. Quantitative and Qualitative Disclosures about Market Risk	37
Item 4. Controls and Procedures	39
PART II - OTHER INFORMATION
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	40
Item 6. Exhibits	41
Signatures	42

Forward-Looking Statements

This Quarterly Report on Form 10-Q (the “Report”), including Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 2 of Part I of this Report, contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. It is important to note that our actual results could be materially different from those projected in such forward-looking statements. You should exercise caution in relying on forward-looking statements as they involve known and unknown risks, uncertainties, and other factors that may materially affect our future results, performance, achievements, or transactions. Information on factors which could impact actual results and cause them to differ from what is anticipated in the forward-looking statements contained herein is included in this Report as well as in our other filings with the Securities and Exchange Commission (the “SEC”), including but not limited to those described in Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2012 as filed with the SEC on February 26, 2013 (the “2012 Annual Report”). We do not undertake to revise or update any forward-looking statements.

Additionally, a description of our critical accounting estimates is included in the Management’s Discussion and Analysis of Financial Condition and Results of Operations section of our 2012 Annual Report. There has been no significant change in our critical accounting estimates. All references to “Notes” throughout the document refer to the footnotes to the consolidated financial statements of the registrant in Part I, Item 1, Financial Statements (Unaudited).

CPA®:16 – Global 3/31/2013 10-Q —1

PART I

Item 1. Financial Statements

CORPORATE PROPERTY ASSOCIATES 16 – GLOBAL INCORPORATED

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in thousands, except share and per share amounts)

	March 31, 2013		December 31, 2012
Assets
Investments in real estate:
Real estate, at cost (inclusive of amounts attributable to consolidated variable interest entities (“VIEs”) of $516,529 and $528,858, respectively)	$	2,195,084	$	2,243,470
Operating real estate, at cost (inclusive of amounts attributable to consolidated VIEs of $29,219 and $29,219, respectively)	85,646		85,565
Accumulated depreciation (inclusive of amounts attributable to consolidated VIEs of $70,222 and $68,529, respectively)	(269,279)		(258,655)
Net investments in properties	2,011,451		2,070,380
Net investments in direct financing leases (inclusive of amounts attributable to consolidated VIEs of $47,412 and $48,363, respectively)	459,706		467,831
Equity investments in real estate	221,604		227,675
Net investments in real estate	2,692,761		2,765,886
Notes receivable (inclusive of amounts attributable to consolidated VIEs of $32,834 and $33,558, respectively)	42,681		43,394
Cash and cash equivalents (inclusive of amounts attributable to consolidated VIEs of $10,339 and $10,993, respectively)	64,207		66,405
Intangible assets, net (inclusive of amounts attributable to consolidated VIEs of $60,470 and $62,182, respectively)	419,029		443,092
Funds in escrow (inclusive of amounts attributable to consolidated VIEs of $2,979 and $3,268, respectively)	23,904		23,274
Other assets, net (inclusive of amounts attributable to consolidated VIEs of $6,006 and $5,225, respectively)	62,853		64,741
Total assets	$	3,305,435	$	3,406,792
Liabilities and Equity
Liabilities:
Non-recourse debt (inclusive of amounts attributable to consolidated VIEs of $472,542 and $485,951, respectively)	$	1,621,252	$	1,644,180
Line of credit	100,000		143,000
Accounts payable, accrued expenses, and other liabilities (inclusive of amounts attributable to consolidated VIEs of $12,328 and $12,409, respectively)	38,436		40,931
Prepaid and deferred rental income and security deposits (inclusive of amounts attributable to consolidated VIEs of $24,650 and $25,402, respectively)	91,970		93,208
Due to affiliates	7,776		6,401
Distributions payable	34,150		33,965
Total liabilities	1,893,584		1,961,685
Redeemable noncontrolling interest	21,094		21,747
Commitments and contingencies (Note 11)
Equity:
CPA®:16 – Global stockholders’ equity:
Common stock $0.001 par value, 400,000,000 shares authorized; 218,268,380 and 216,822,067 shares issued and outstanding, respectively	216		217
Additional paid-in capital	1,993,534		1,980,984
Distributions in excess of accumulated earnings	(531,457)		(500,050)
Accumulated other comprehensive loss	(32,258)		(27,043)
Less, treasury stock at cost, 14,789,503 and 14,204,793 shares, respectively	(131,180)		(126,228)
Total CPA®:16 – Global stockholders’ equity	1,298,855		1,327,880
Noncontrolling interests	91,902		95,480
Total equity	1,390,757		1,423,360
Total liabilities and equity	$	3,305,435	$	3,406,792

See Notes to Consolidated Financial Statements.

CPA®:16 – Global 3/31/2013 10-Q — 2

CORPORATE PROPERTY ASSOCIATES 16 – GLOBAL INCORPORATED

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(in thousands, except share and per share amounts)

	Three Months Ended March 31,
	2013		2012
Revenues
Rental income	$	59,959	$	61,887
Interest income from direct financing leases	10,081		10,081
Lease revenues	70,040		71,968
Other operating income	2,411		2,554
Interest income on notes receivable	735		1,172
Other real estate income	6,356		6,408
	79,542		82,102
Operating Expenses
General and administrative	(5,923)		(4,729)
Depreciation and amortization	(22,819)		(23,847)
Property expenses	(9,613)		(9,073)
Other real estate expenses	(4,695)		(4,839)
Impairment charges	(9,313)		(10)
	(52,363)		(42,498)
Other Income and Expenses
Net income from equity investments in real estate	5,525		7,544
Other income and (expenses)	(845)		862
Loss on extinguishment of debt	-		(507)
Interest expense	(24,389)		(27,282)
	(19,709)		(19,383)
Income from continuing operations before income taxes	7,470		20,221
Provision for income taxes	(4,898)		(4,098)
Income from continuing operations	2,572		16,123
Discontinued Operations
Income (loss) from operations of discontinued properties	219		(1,999)
Gain (loss) on sale of real estate	2,701		(2,191)
Impairment charges	-		(485)
Income (loss) from discontinued operations, net of tax	2,920		(4,675)
Net Income	5,492		11,448
Less: Net income attributable to noncontrolling interests (inclusive ofAvailable Cash Distributions to advisor of $3,614 and $4,281,respectively)	(4,651)		(3,773)
Net loss (income) attributable to redeemable noncontrolling interest	1,901		(355)
Net Income Attributable to CPA®:16 – Global Stockholders	$	2,742	$	7,320
Earnings Per Share
(Loss) income from continuing operations attributable to CPA®:16 – Global stockholders	$	-	$	0.06
Income (loss) from discontinued operations attributable to CPA®:16 – Global stockholders	0.01		(0.03)
Net income attributable to CPA®:16 – Global stockholders	$	0.01	$	0.03
Weighted Average Shares Outstanding	203,530,974		201,306,287
Amounts Attributable to CPA®:16 – Global Stockholders
(Loss) income from continuing operations, net of tax	$	(178)	$	11,995
Income (loss) from discontinued operations, net of tax	2,920		(4,675)
Net income attributable to CPA®:16 – Global stockholders	$	2,742	$	7,320
Distributions Declared Per Share	$	0.1678	$	0.1670

See Notes to Consolidated Financial Statements.

CPA®:16 – Global 3/31/2013 10-Q — 3

CORPORATE PROPERTY ASSOCIATES 16 – GLOBAL INCORPORATED

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (UNAUDITED)

(in thousands)

	Three Months Ended March 31,
	2013		2012
Net Income	$	5,492	$	11,448
Other Comprehensive (Loss) Income:
Foreign currency translation adjustments	(10,020)		10,119
Change in unrealized appreciation (depreciation) onmarketable securities	3		(17)
Change in unrealized gain (loss) on derivative instruments	3,188		(1,095)
	(6,829)		9,007
Comprehensive (Loss) Income	(1,337)		20,455
Amounts Attributable to Noncontrolling Interests:
Net income	(4,651)		(3,773)
Foreign currency translation adjustments	971		(1,176)
Comprehensive income attributable to noncontrolling interests	(3,680)		(4,949)
Amounts Attributable to Redeemable Noncontrolling Interest:
Net loss (income)	1,901		(355)
Foreign currency translation adjustments	643		(640)
Comprehensive loss (income) attributable to redeemablenoncontrolling interest	2,544		(995)
Comprehensive (Loss) Income Attributable to CPA®:16 – GlobalStockholders	$	(2,473)	$	14,511

See Notes to Consolidated Financial Statements.

CPA®:16 – Global 3/31/2013 10-Q — 4

CORPORATE PROPERTY ASSOCIATES 16 – GLOBAL INCORPORATED

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(in thousands)

	Three Months Ended March 31,
	2013		2012
Cash Flows — Operating Activities
Net income	$	5,492	$	11,448
Adjustments to net income:
Depreciation and amortization including intangible assets and deferred financing costs	23,915		28,295
Net income from equity investments in real estate in excess of distributions received	(650)		(3,096)
Issuance of shares to affiliate in satisfaction of fees due	3,773		4,781
(Gain) loss on sale of real estate	(2,701)		2,191
Unrealized loss (gain) on foreign currency transactions and other	1,433		(910)
Realized (gain) loss on foreign currency transactions and other	(367)		206
Straight-line rent adjustment and amortization of rent-related intangibles	4,166		2,407
Loss on extinguishment of debt, net	-		507
Impairment charges	9,313		495
Net changes in other operating assets and liabilities	3,789		188
Net Cash Provided by Operating Activities	48,163		46,512
Cash Flows — Investing Activities
Distributions received from equity investments in real estate in excess of equity income	4,427		4,047
Expenditures on capital improvements	(81)		(253)
Maturities of debt securities	66		42
Proceeds from sale of real estate	27,942		11,753
Funds placed in escrow	(3,875)		(1,651)
Funds released from escrow	2,966		2,449
Payment of deferred acquisition fees to an affiliate	(546)		(1,633)
Proceeds from repayment of notes receivable	70		24,021
Interest income from direct financing leases in excess of cash receipts	1,227		-
Net Cash Provided by Investing Activities	32,196		38,775
Cash Flows — Financing Activities
Distributions paid	(33,964)		(33,423)
Contributions from noncontrolling interests	2,480		2,754
Distributions to noncontrolling interests	(7,904)		(7,811)
Scheduled payments of mortgage principal	(10,586)		(21,613)
Prepayments of mortgage principal	(4,925)		(17,919)
Proceeds from mortgage financing	13,000		11,075
Proceeds from line of credit	25,000		-
Repayments of line of credit	(68,000)		(54,000)
Funds placed in escrow	-		422
Funds released from escrow	-		(423)
Deferred financing costs and mortgage deposits	(334)		(772)
Proceeds from issuance of shares, net of issuance costs	8,776		8,469
(Purchase) reissuance of treasury stock	(4,952)		117
Net Cash Used in Financing Activities	(81,409)		(113,124)
Change in Cash and Cash Equivalents During the Period
Effect of exchange rate changes on cash	(1,148)		1,043
Net decrease in cash and cash equivalents	(2,198)		(26,794)
Cash and cash equivalents, beginning of period	66,405		109,694
Cash and cash equivalents, end of period	$	64,207	$	82,900

See Notes to Consolidated Financial Statements.

CPA®:16 – Global 3/31/2013 10-Q — 5

CORPORATE PROPERTY ASSOCIATES 16 – GLOBAL INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 1. Business and Organization

Corporate Property Associates 16 – Global Incorporated (“CPA®:16 – Global”) and, together with its consolidated subsidiaries and predecessors, “we,” “us,” or “our”) is a publicly owned, non-listed real estate investment trust (“REIT”) that invests primarily in commercial properties leased to companies domestically and internationally. We were formed in 2003 and are managed by W. P. Carey Inc. (“WPC”) and its subsidiaries (collectively, the “advisor”). As a REIT, we are not subject to United States (“U.S.”) federal income taxation as long as we satisfy certain requirements, principally relating to the nature of our income, the level of our distributions, and other factors. We earn revenue principally by leasing the properties we own to single corporate tenants, primarily on a triple-net lease basis, which requires the tenant to pay substantially all of the costs associated with operating and maintaining the property. Revenue is subject to fluctuation primarily because of the timing of new lease transactions, lease terminations, lease expirations, contractual rent adjustments, tenant defaults, and sales of properties.

At March 31, 2013, our portfolio was comprised of our full or partial ownership interests in 494 properties, substantially all of which were triple-net leased to 140 tenants, and totaled approximately 47 million square feet, with an occupancy rate of approximately 97.4%. In addition, we own two hotel properties in Minnesota and Tennessee which had an aggregate carrying value of $68.8 million at March 31, 2013.

On May 2, 2011, Corporate Property Associates 14 Incorporated (“CPA®:14”) merged with and into CPA 16 Merger Sub, Inc. (“CPA 16 Merger Sub”), one of our wholly-owned subsidiaries (the “Merger”). Following the consummation of the Merger, we implemented an internal reorganization pursuant to which we were reorganized as an umbrella partnership real estate investment trust (the “UPREIT Reorganization”) to hold substantially all of our assets and liabilities in CPA 16 LLC (the “Operating Partnership”), a Delaware limited liability company subsidiary (Note 3). At March 31, 2013, we owned 99.985% of general and limited partnership interests in the Operating Partnership. The remaining 0.015% interest in the Operating Partnership is held by a subsidiary of WPC.

Note 2. Basis of Presentation

Our interim consolidated financial statements have been prepared, without audit, in accordance with the instructions to Form 10-Q and, therefore, do not necessarily include all information and footnotes necessary for a fair statement of our consolidated financial position, results of operations, and cash flows in accordance with accounting principles generally accepted in the U.S. (“GAAP”).

In the opinion of management, the unaudited financial information for the interim periods presented in this Report reflects all normal and recurring adjustments necessary for a fair statement of results of operations, financial position, and cash flows. Our interim consolidated financial statements should be read in conjunction with our audited consolidated financial statements and accompanying notes for the year ended December 31, 2012, which are included in the 2012 Annual Report, as certain disclosures that would substantially duplicate those contained in the audited consolidated financial statements have not been included in this Report. Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in our consolidated financial statements and the accompanying notes.

Actual results could differ from those estimates. The unaudited consolidated financial statements included in this Report have been retrospectively adjusted to reflect the disposition (or planned disposition) of certain properties as discontinued operations for all periods presented.

Basis of Consolidation

The consolidated financial statements reflect all of our accounts, including those of our majority-owned and/or controlled subsidiaries and our tenancy-in-common interests, as described below. The portion of equity in a consolidated subsidiary that is not attributable, directly or indirectly, to us is presented as noncontrolling interests. All significant intercompany accounts and transactions have been eliminated.

We have investments in tenancy-in-common interests in various domestic and international properties. Consolidation of these investments is not required as such interests do not qualify as VIEs and do not meet the control requirement required for consolidation. Accordingly, we account for these investments using the equity method of accounting. We use the equity method of accounting

CPA®:16 – Global 3/31/2013 10-Q — 6

Notes to Consolidated Financial Statements

because the shared decision-making involved in a tenancy-in-common interest investment provides us with significant influence on the operating and financial decisions of these investments.

Additionally, we own interests in single-tenant net leased properties leased to companies through noncontrolling interests in partnerships and limited liability companies that we do not control but over which we exercise significant influence. We account for these investments under the equity method of accounting. At times, the carrying value of our equity investments may fall below zero for certain investments. We intend to fund our share of the jointly-owned investments’ future operating deficits should the need arise. However, we have no legal obligation to pay for any of the liabilities of such investments nor do we have any legal obligation to fund operating deficits.

We apply accounting guidance for consolidation of VIEs to certain entities in which the equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. Fixed price purchase and renewal options within a lease as well as certain decision-making rights within a loan can cause us to consider an entity a VIE.

Information about International Geographic Areas

At the end of the reporting period, our international investments were comprised of investments in Europe (primarily Germany), Canada, Mexico, Malaysia, and Thailand. Foreign currency exposure and risk management are discussed in Note 9. The following tables present information about these investments (in thousands):

	Three Months Ended March 31,
	2013		2012
Revenues	$	25,886	$	28,879
Income from continuing operations before income taxes	4,398		7,375
Net (loss) income	(1,524)		4,934

	March 31, 2013		December 31, 2012
Net investments in real estate	$	947,335	$	979,503

New Accounting Requirements

The following Accounting Standards Updates (“ASUs”) promulgated by Financial Accounting Standards Board (“FASB”) are applicable to us as indicated:

ASU 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities — In January 2013, the FASB issued an update to ASU 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. ASU 2013-01 clarifies that the scope of ASU 2011-11 applies to derivatives accounted for in accordance with Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with Sections 210-20-45 or Section 815-10-45 or subject to an enforceable master netting or similar arrangement. These amendments did not have a significant impact on our financial position or results of operations and are applicable to us for our interim and annual reports beginning in 2013 and shall be applied retrospectively.

ASU 2013-02, Other Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income — In February 2013, the FASB issued ASU 2013-02 requiring entities to disclose additional information about items reclassified out of accumulated other comprehensive income. This ASU impacts the form of our disclosures only, is applicable to us for our interim and annual reports beginning in 2013. The related additional disclosures are located in Note 12.

ASU 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date, a consensus of the FASB Emerging Issues Task Force — In February 2013, the FASB issued ASU 2013-04, which requires entities to measure obligations resulting from joint and several liability arrangements (in our case, tenancy-in-common arrangements) for which the total amount of the obligation is fixed as the sum of the amount the entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. This ASU is applicable to us for our interim and annual reports beginning in 2014, shall be applied

CPA®:16 – Global 3/31/2013 10-Q — 7

Notes to Consolidated Financial Statements

retrospectively, and is not expected to have a significant impact on our financial position or results of operations for any of the periods presented.

Note 3. Agreements and Transactions with Related Parties

Transactions with the Advisor

We have an advisory agreement with the advisor whereby the advisor performs certain services for us under a fee arrangement. On September 28, 2012, following the merger between our advisor and our affiliate, Corporate Property Associates 15 Incorporated, we entered into an amended and restated advisory agreement, which is scheduled to renew annually. As amended, the advisory agreement provides for the allocation of the advisor’s personnel expenses on the basis of our trailing four quarters of reported revenues and those of WPC and the other publicly-owned, non-listed REITs, which are managed by our advisor under the Corporate Property Associates brand name, and Carey Watermark Investors Incorporated (together, the “Managed REITs”) rather than on an allocation of time charges incurred by the advisor’s personnel on behalf of the Managed REITs. The fee structure related to asset management fees, initial acquisition fees, subordinated acquisition fees, and subordinated disposition fees remains unchanged, and the advisor remains entitled to 10% of the available cash of the Operating Partnership (the “Available Cash Distribution”), as described below. We also have certain agreements with affiliates regarding jointly-owned investments. The following tables present a summary of fees we paid and expenses we reimbursed to the advisor in accordance with the advisory agreement (in thousands):

	Three Months Ended March 31,
	2013		2012
Amounts Included in the Consolidated Statements of Income:
Asset management fees	$	4,498	$	4,701
Available Cash Distribution	3,614		4,281
Personnel reimbursements	3,376		1,626
Office rent reimbursements	380		311
	$	11,868	$	10,919
Other Transaction Fees Incurred:
Mortgage refinancing fees	$	313	$	-
	$	313	$	-

	March 31, 2013		December 31, 2012
Unpaid Transaction Fees:
Deferred acquisition fees	$	1,212	$	1,757
Subordinated disposition fees	1,197		1,197
	$	2,409	$	2,954

Asset Management Fees

We pay the advisor asset management fees, which are 0.5% per annum of our average invested assets and are computed as provided for in the advisory agreement. The asset management fees are payable in cash or shares of our common stock at the advisor’s option. If the advisor elects to receive all or a portion of its fees in shares, the number of shares issued is determined by dividing the dollar amount of fees by our most recently published net asset value per share (“NAV”) as approved by our board of directors. For 2013, the advisor elected to receive its asset management fees in shares of our common stock whereas in 2012 the advisor elected to receive 50% of its asset management fees in cash and 50% in shares of our common stock. Asset management fees are included in Property expenses in the consolidated financial statements.

Available Cash Distribution

In connection with the UPREIT Reorganization, WPC REIT Merger Sub Inc., a subsidiary of WPC (the “Special General Partner”), acquired a special membership interest (“Special Member Interest”) of 0.015% in the Operating Partnership entitling it to receive the Available Cash Distribution, which is measured and paid quarterly in either cash or shares of our common stock, at the advisor’s

CPA®:16 – Global 3/31/2013 10-Q — 8

Notes to Consolidated Financial Statements

election. The Available Cash Distribution is defined as cash generated from operations, excluding capital proceeds, as reduced by operating expenses and debt service, excluding prepayments and balloon payments. The Available Cash Distribution is contractually limited to 0.5% of our assets excluding cash, cash equivalents, and certain short-term investments and non-cash reserves. In the event of a capital transaction such as a sale, exchange, disposition, or refinancing of our net assets, the Special General Partner may also be entitled to receive a distribution in an amount equal to 15% of the excess, if any, of the consideration generated by the capital transaction (net of costs and expenses) after our stockholders have received a return of their invested capital plus a 6% priority return.

Personnel and Office Rent Reimbursements

We reimburse the advisor for various expenses it incurs in the course of providing services to us. We reimburse certain third-party expenses paid by the advisor on our behalf, including property-specific costs, professional fees, office expenses, and business development expenses. In addition, we reimburse the advisor for the allocated costs of personnel and overhead in managing our day-to-day operations, including accounting services, stockholder services, corporate management, and property management and operations. We do not reimburse the advisor for the cost of personnel if these personnel provide services for transactions for which the advisor receives a transaction fee, such as acquisitions, dispositions, and refinancings. Personnel and office rent reimbursements are included in General and administrative expenses in the consolidated financial statements.

The advisor is obligated to reimburse us for the amount by which our operating expenses exceeds the “2%/25% guidelines” (the greater of 2% of average invested assets or 25% of net income) as defined in the advisory agreement for any 12-month period. If in any year our operating expenses exceed the 2%/25% guidelines, the advisor will have an obligation to reimburse us for such excess, subject to certain conditions. If our independent directors find that the excess expenses were justified based on any unusual and nonrecurring factors that they deem sufficient, the advisor may be paid in future years for the full amount or any portion of such excess expenses, but only to the extent that the reimbursement would not cause our operating expenses to exceed this limit in any such year. We will record any reimbursement of operating expenses as a liability until any contingencies are resolved and will record the reimbursement as a reduction of asset management fees at such time that a reimbursement is fixed, determinable, and irrevocable. Our operating expenses have not exceeded the amount that would require the advisor to reimburse us.

Transaction Fees

We pay the advisor acquisition fees for structuring and negotiating investments and related mortgage financing on our behalf. Acquisition fees are 4.5% or less of the aggregate cost of investments acquired and are comprised of a current portion of 2.5%, which is paid at the date the property is purchased, and a deferred portion of 2%, which is payable in equal annual installments each January of the three calendar years following the date on which a property was purchased, subject to satisfying the 6% performance criterion. Interest is accrued on unpaid installments of the deferred portion at 5% per year. Current and deferred acquisition fees are capitalized and included in the cost basis of the assets acquired. Mortgage refinancing fees equal up to 1% of the principal and are capitalized to deferred financing costs and amortized over the life of the new loans.

We also pay fees to the advisor for services provided to us in connection with the disposition of investments. These fees, which are subordinated to the performance criterion and certain other provisions included in the advisory agreement, are deferred and are payable to the advisor only in connection with a liquidity event.

Jointly-Owned Investments and Other Transactions with Affiliates

We share with our affiliates leased office space used for the administration of our operations. Rental, occupancy, and leasehold improvement costs are allocated among us and our affiliates based on our respective gross revenues and are adjusted quarterly.

We own interests ranging from 25% to 90% in jointly-owned investments, with the remaining interests generally held by affiliates. We consolidate certain of these investments and account for the remainder under the equity method of accounting. We also own interests in jointly-controlled tenancy-in-common interests in properties, which we account for under the equity method of accounting.

At March 31, 2013, the advisor owned 37,553,551 shares, or 18.5%, of our common stock, which excluded its ownership in the Special Member Interest.

CPA®:16 – Global 3/31/2013 10-Q — 9

Notes to Consolidated Financial Statements

Note 4. Net Investments in Properties

Real Estate

Real estate, which consists of land and buildings leased to others under operating leases and are carried at cost, is summarized as follows (in thousands):

	March 31, 2013		December 31, 2012
Land	$	457,694	$	470,809
Buildings	1,737,390		1,772,661
Less: Accumulated depreciation	(252,461)		(242,648)
	$	1,942,623	$	2,000,822

We did not acquire any real estate assets during the three months ended March 31, 2013. During this period, the U.S. dollar strengthened against the euro, as the end-of-period rate for the U.S. dollar in relation to the euro at March 31, 2013 decreased by 3.0% to $1.2821 from $1.3218 at December 31, 2012. The impact of this strengthening was a $17.8 million decrease in Real estate from December 31, 2012 to March 31, 2013. Assets disposed of during the three months ended March 31, 2013 also accounted for a significant portion of the decrease in real estate and are discussed in Note 13.

Operating Real Estate

Operating real estate, which consists of our two hotel operations, at cost, is summarized as follows (in thousands):

	March 31, 2013		December 31, 2012
Land	$	8,296	$	8,296
Buildings	68,533		68,505
Furniture, fixtures, and equipment	8,817		8,764
Less: Accumulated depreciation	(16,818)		(16,007)
	$	68,828	$	69,558

Note 5. Finance Receivables

Assets representing rights to receive money on demand or at fixed or determinable dates are referred to as finance receivables. Our finance receivable portfolios consist of our Net investments in direct financing leases and Notes receivable.

Notes Receivable

Hellweg 2

Under the terms of the note receivable acquired in connection with the April 2007 investment in which we and our affiliates acquired a property-owning investment that in turn acquired a 24.7% ownership interest in a limited partnership and a lending investment that made a loan (“the note receivable”) to the holder of the remaining 75.3% interests in the limited partnership (“Hellweg 2 transaction”), the lending investment will receive interest at a fixed annual rate of 8%. The note receivable matures in April 2017. The note receivable had a principal balance of $21.1 million and $21.7 million, inclusive of our affiliates’ noncontrolling interest of $15.7 million and $16.1 million, at March 31, 2013 and December 31, 2012, respectively.

Production Resource Group, LLC

In January 2012, we restructured our lease with Production Resource Group, LLC (“PRG”) so as to extend the lease term to June 2029 and also give PRG the option to purchase the property at predetermined dates and prices during the lease term. If PRG does not exercise its purchase option during the term of the lease, the property transfers to the tenant for $1 at the end of the lease term. The restructured lease is accounted for as a sales-type lease due to the automatic transfer of title at the end of the lease. In addition, because the minimum initial and continuing investment criteria were not met at the inception of the sales-type lease, the sale of the asset is accounted for under the deposit method. The property is not derecognized and all periodic cash payments received under the lease are carried on the balance sheet as a deposit liability until approximately 5% of the purchase price has been collected. By October 2012,

CPA®:16 – Global 3/31/2013 10-Q — 10

Notes to Consolidated Financial Statements

the aggregate cash payments received crossed the 5% threshold and accordingly we derecognized the property and recognized a gain of $0.1 million. We also recognized a note receivable, which had a balance of $11.7 million and $11.8 million at March 31, 2013 and December 31, 2012, respectively, to reflect the expected future payments under the lease. The remaining deferred gain of $3.8 million as of March 31, 2013 will be recognized into income in proportion to the principal payments on the note until we have received 20% of the purchase price. At that time, the full gain will be recognized.

Other

We had a B-note receivable that totaled $9.8 million at both March 31, 2013 and December 31, 2012 with a fixed annual interest rate of 6.3% and a maturity date of February 11, 2015.

Credit Quality of Finance Receivables

We generally seek investments in facilities that we believe are critical to each tenant’s business and that we believe have a low risk of tenant defaults. At March 31, 2013 and December 31, 2012, none of the balances of our finance receivables were past due. Our allowance for uncollected accounts was $0.3 million and $0.2 million at March 31, 2013 and December 31, 2012, respectively. Additionally, there have been no modifications of finance receivables during the three months ended March 31, 2013. We evaluate the credit quality of our tenant receivables utilizing an internal 5-point credit rating scale, with 1 representing the highest credit quality and 5 representing the lowest. The credit quality evaluation of our tenant receivables was last updated in the first quarter of 2013.

A summary of our finance receivables by internal credit quality rating for the periods presented is as follows (dollars in thousands):

	Number of Tenants at		Net Investments in Direct Financing Leases at
Internal Credit Quality Indicator	March 31, 2013	December 31, 2012	March 31, 2013		December 31, 2012
1	1	1	$	43,124	$	43,213
2	1	2	26,893		35,197
3	12	13	200,083		230,527
4	9	7	183,576		152,902
5	1	1	6,030		5,992
			$	459,706	$	467,831

	Number of Obligors at		Notes Receivable at
Internal Credit Quality Indicator	March 31, 2013	December 31, 2012	March 31, 2013		December 31, 2012
1	-	-	$	-	$	-
2	1	1	9,847		9,836
3	2	2	32,834		33,558
4	-	-	-		-
5	-	-	-		-
			$	42,681	$	43,394

Note 6. Equity Investments in Real Estate

We own equity interests in single-tenant net leased properties that are generally leased to companies through noncontrolling interests (i) in partnerships and limited liability companies that we do not control but over which we exercise significant influence or (ii) as tenants-in-common subject to common control. Generally, the underlying investments are jointly-owned with affiliates. We account for these investments under the equity method of accounting (i.e., at cost, increased or decreased by our share of earnings or losses, less distributions, plus contributions and other adjustments required by equity method accounting, such as basis differences from other-than-temporary impairments). Investments in unconsolidated investments are required to be evaluated periodically. We compare an investment’s carrying value to its estimated fair value and recognize an impairment charge to the extent that the carrying value exceeds fair value and such decline is determined to be other than temporary.

CPA®:16 – Global 3/31/2013 10-Q — 11

Notes to Consolidated Financial Statements

The following table sets forth our ownership interests in our equity investments in real estate and their respective carrying values (dollars in thousands):

	Ownership Interest	Carrying Value at
Lessee	at March 31, 2013	March 31, 2013		December 31, 2012
True Value Company (a) (b) (c)	50%	$	40,521	$	43,100
The New York Times Company (d) (e)	27%	34,965		34,579
U-Haul Moving Partners, Inc. and Mercury Partners, LP (d) (f)	31%	30,746		30,932
Advanced Micro Devices, Inc. (a) (g) (h)	67%	27,738		28,619
Schuler A.G. (a) (h) (i)	33%	20,777		21,178
Hellweg Die Profi-Baumärkte GmbH & Co. KG (Hellweg 1) (a) (i)	25%	20,440		20,837
The Upper Deck Company (a)	50%	7,981		7,998
Frontier Spinning Mills, Inc. (j)	40%	6,263		6,265
Del Monte Corporation (a) (h)	50%	5,263		5,580
Actebis Peacock GmbH (i) (j)	30%	4,396		4,477
Police Prefecture, French Government (a) (i)	50%	4,373		5,010
TietoEnator Plc (a) (i)	40%	3,879		3,895
Town Sports International Holdings, Inc. (a)	56%	3,014		3,203
Barth Europa Transporte e.K/MSR Technologies GmbH (a) (i)	33%	3,005		3,219
Actuant Corporation (a) (i)	50%	2,600		2,711
OBI A.G. (a) (i) (k)	25%	2,021		1,819
Consolidated Systems, Inc. (a) (h)	40%	1,980		2,004
Thomson Broadcast, Veolia Transport, and Marchal Levage(formerly Thales S.A.) (a) (i)	35%	1,295		1,606
Pohjola Non-life Insurance Company (a) (i)	40%	347		190
Talaria Holdings, LLC (l)	27%	-		453
		$	221,604	$	227,675

__________

(a)	This investment is jointly-owned with WPC.
(b)	In January 2013, the investment repaid three mortgage loans encumbering seven of its properties totaling $64.8 million, of which our share was $32.4 million. Additionally, the investment obtained new non-recourse mortgage financing encumbering six of its properties with proceeds totaling $62.5 million, of which our share was $31.3 million.
(c)	We received distributions of $3.2 million and $1.1 million from this investment during the three months ended March 31, 2013 and 2012, respectively.
(d)	This investment is jointly-owned with WPC and Corporate Property Associates 17 – Global Incorporated (“CPA®:17 – Global”).
(e)	We received distributions of $1.2 million and $1.0 million from this investment during the three months ended March 31, 2013 and 2012, respectively.
(f)	We received distributions of $1.3 million and $1.4 million from this investment during the three months ended March 31, 2013 and 2012, respectively.
(g)	We received distributions of $1.3 million from this investment during both the three months ended March 31, 2013 and 2012, respectively.
(h)	These investments are considered tenancy-in-common interests, whereby the property is encumbered by debt for which we are jointly and severally liable. For these investments, the co-obligor is the advisor and the aggregate amount due under the arrangements is approximately $76.6 million. Of this amount, $46.5 million represents the amount we agreed to pay and is included within the carrying value of these investments. The carrying value of these investments also includes the undepreciated cost of the related properties.
(i)	The carrying value of this investment is affected by the impact of fluctuations in the exchange rate of the euro.
(j)	This investment is jointly-owned with CPA®:17 – Global.
(k)	This increase was primarily due to the investment’s share of other comprehensive income recognized on interest rate swap derivative instruments.
(l)	This decrease reflects an asset write-off recorded by the investment during the three months ended March 31, 2013.

CPA®:16 – Global 3/31/2013 10-Q — 12

Notes to Consolidated Financial Statements

We recognized net income from equity investments in real estate of $5.5 million and $7.5 million for the three months ended March 31, 2013 and 2012, respectively. Net income from equity investments in real estate represents our proportionate share of the income or losses of these investments as well as certain depreciation and amortization adjustments related to other-than-temporary impairment charges and basis differentials from acquisitions of certain investments.

Note 7. Intangible Assets and Liabilities

In connection with our acquisitions of properties, we have recorded net lease intangibles which are being amortized over periods ranging from four years to 40 years. There were no new intangible assets or liabilities recorded during the three months ended March 31, 2013. In-place lease, tenant relationship, above-market rent, below-market ground lease, management contract, and franchise agreement intangibles are included in Intangible assets, net in the consolidated financial statements. Below-market rent intangibles are included in Prepaid and deferred rental income and security deposits in the consolidated financial statements.

Intangible assets and liabilities are summarized as follows (in thousands):

	March 31, 2013						December 31, 2012
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Amortizable Intangible Assets
Management contract	$	874	$	(676)	$	198	$	874	$	(645)	$	229
Franchise agreement	2,240		(1,214)		1,026		2,240		(1,157)		1,083
	3,114		(1,890)		1,224		3,114		(1,802)		1,312
Lease intangibles:
In-place lease	352,247		(108,102)		244,145		361,242		(101,122)		260,120
Tenant relationship	32,674		(7,765)		24,909		33,615		(7,544)		26,071
Above-market rent	193,270		(50,780)		142,490		195,985		(46,688)		149,297
Below-market ground lease	6,738		(477)		6,261		6,752		(460)		6,292
	584,929		(167,124)		417,805		597,594		(155,814)		441,780
Total intangible assets	$	588,043	$	(169,014)	$	419,029	$	600,708	$	(157,616)	$	443,092
Amortizable Below-MarketRent Intangible Liabilities
Below-market rent	$	(64,596)	$	13,682	$	(50,914)	$	(65,148)	$	13,001	$	(52,147)
Total intangible liabilities	$	(64,596)	$	13,682	$	(50,914)	$	(65,148)	$	13,001	$	(52,147)

Net amortization of intangibles, including the effect of foreign currency translation, was $12.9 million and $14.1 million for the three months ended March 31, 2013 and 2012, respectively. Amortization of above-market rent, below-market rent, and below-market ground lease intangibles is recorded as an adjustment to Lease revenues, while amortization of management contract, franchise agreement, in-place lease, and tenant relationship intangibles is included in Depreciation and amortization.

Based on the intangible assets and liabilities recorded at March 31, 2013, scheduled net annual amortization of intangibles for the remainder of 2013, each of the next four calendar years following December 31, 2013, and thereafter is as follows (in thousands):

Years Ending December 31,	Total
2013 (remainder)	$	43,702
2014	54,116
2015	47,499
2016	40,320
2017	37,223
Thereafter	145,255
	$	368,115

CPA®:16 – Global 3/31/2013 10-Q — 13

Notes to Consolidated Financial Statements

Note 8. Fair Value Measurements

The fair value of an asset is defined as the exit price, which is the amount that would either be received when an asset is sold or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance establishes a three-tier fair value hierarchy based on the inputs used in measuring fair value. These tiers are: Level 1, for which quoted market prices for identical instruments are available in active markets, such as money market funds, equity securities, and U.S. Treasury securities; Level 2, for which there are inputs other than quoted prices included within Level 1 that are observable for the instrument, such as certain derivative instruments including interest rate caps and swaps; and Level 3, for securities that do not fall into Level 1 or Level 2 and for which little or no market data exists, therefore requiring us to develop our own assumptions.

Items Measured at Fair Value on a Recurring Basis

The methods and assumptions described below were used to estimate the fair value of each class of financial instrument. For significant Level 3 items we have also provided the unobservable inputs along with their weighted average ranges.

Derivative Assets — Our derivative assets are comprised of foreign currency forward contracts and an interest rate cap, as well as stock warrants that were granted to us by lessees in connection with structuring initial lease transactions. These assets are included in Other assets, net in the consolidated financial statements. The foreign currency collars and forward contracts and interest rate cap were measured at fair value using readily observable market inputs, such as quotations on interest rates and were classified as Level 2 as these instruments are custom, over-the-counter contracts with various bank counterparties that are not traded in an active market. Our stock warrants are not traded in an active market. We estimated the fair value of these assets using internal valuation models that incorporate market inputs and our own assumptions about future cash flows. We classified these assets as Level 3.

Derivative Liabilities — Our derivative liabilities are comprised of interest rate swaps and foreign currency forward contracts and are included in Accounts payable, accrued expenses, and other liabilities in the consolidated financial statements. These derivative instruments were measured at fair value using readily observable market inputs, such as quotations on interest rates. These derivative instruments were classified as Level 2 as these instruments are custom, over-the-counter contracts with various bank counterparties that are not traded in an active market.

Our other financial instruments had the following carrying values and fair values as of the dates shown (in thousands):

		March 31, 2013				December 31, 2012
	Level	Carrying Value		Fair Value		Carrying Value		Fair Value
Non-recourse debt (a)	3	$	1,621,252	$	1,631,483	$	1,644,180	$	1,656,684
Line of credit	3	100,000		100,000		143,000		143,000
Notes receivable (a)	3	42,681		43,572		43,394		44,363

__________

(a)We determined the estimated fair value of our other financial instruments using a discounted cash flow model with rates that take into account the credit of the tenant/obligor and interest rate risk. We also considered the value of the underlying collateral, taking into account the quality of the collateral, the credit quality of the tenant/obligor, the time until maturity, and the current market interest rate.

We estimated that our remaining financial assets and liabilities (excluding net investments in direct financing leases) had fair values that approximated their carrying values at both March 31, 2013 and December 31, 2012.

Items Measured at Fair Value on a Non-Recurring Basis (Including Impairment Charges)

We periodically assess whether there are any indicators that the value of our real estate investments may be impaired or that their carrying value may not be recoverable. For investments in real estate in which an impairment indicator is identified, we follow a two-step process to determine whether the investment is impaired and to determine the amount of the charge. First, we compare the carrying value of the real estate to the future undiscounted net cash flows that we expect the real estate will generate, including any estimated proceeds from the eventual sale of the real estate. If this amount is less than the carrying value, the real estate is considered to be impaired, and we then measure the loss as the excess of the carrying value of the real estate over the estimated fair value of the real estate, which is primarily determined using market information such as recent comparable sales or broker quotes. If relevant market information is not available or is not deemed appropriate, we perform a future net cash flow analysis discounted for inherent risk associated with each investment. We determined that the significant inputs used to value these investments fall within Level 3 for

CPA®:16 – Global 3/31/2013 10-Q — 14

Notes to Consolidated Financial Statements

fair value accounting. As a result of our assessments, we calculated impairment charges based on market conditions and assumptions that existed at the time. The valuation of real estate is subject to significant judgment and actual results may differ materially if market conditions or the underlying assumptions change.

The following table presents information about our assets that were measured on a fair value basis (in thousands):

	Three Months Ended March 31, 2013				Three Months Ended March 31, 2012
	Total Fair Value		Total Impairment		Total Fair Value		Total Impairment
	Measurements (a)		Charges		Measurements		Charges
Net investments in properties	$	8,730	$	9,313	$	-	$	-
Net investments in direct financing leases	-		-		-		10
Total impairment charges included in expenses	8,730		9,313		-		10
Total impairment charges included in income from continuing operations	8,730		9,313		-		10
Impairment charges included in discontinued operations	-		-		4,200		485
Total impairment charges	$	8,730	$	9,313	$	4,200	$	495

__________

(a)The fair value measurement for Net investments in properties was developed by a third-party source, subject to our corroboration for reasonableness. The third-party source utilized local average rent rates for the previous five years and sales of comparable properties to determine a fair value range of $75-$85 per square foot.

Significant impairment charges, and their related triggering events, recognized during the three months ended March 31, 2013 and 2012 were as follows:

Real Estate

2013 — During the three months ended March 31, 2013, we recognized an impairment charge of $9.3 million on a property in order to reduce its carrying value to its estimated fair value due to the property’s tenant filing for bankruptcy during the first quarter of 2013. A market participant would likely not ascribe any value to the tenant’s lease, so the fair value of the property now reflects the value as if it were vacant.

Properties Sold

2012 — During the three months ended March 31, 2012, we recognized an impairment charge of $0.5 million on a property in order to reduce its carrying value to its estimated fair value due to the tenant vacating the property. The property was subsequently sold in June 2012. The results of operations for this property are included in Income (loss) from discontinued operations, net of tax in the consolidated financial statements.

Note 9. Risk Management and Use of Derivative Financial Instruments

Risk Management

In the normal course of our ongoing business operations, we encounter economic risk. There are three main components of economic risk that impact us: interest rate risk, credit risk, and market risk. We are primarily subject to interest rate risk on our interest-bearing assets and liabilities, including our secured credit agreement (the “Credit Agreement,” Note 10). Credit risk is the risk of default on our operations and our tenants’ inability or unwillingness to make contractually required payments. Market risk includes changes in the value of our properties and related loans as well as changes in the value of our other securities due to changes in interest rates or other market factors. In addition, as we own investments outside the U.S., we are subject to the risks associated with changing foreign currency exchange rates.

Use of Derivative Financial Instruments

When we use derivative instruments, it is generally to reduce our exposure to fluctuations in interest rates and foreign currency exchange rate movements. We have not entered, and do not plan to enter into, financial instruments for trading or speculative

CPA®:16 – Global 3/31/2013 10-Q — 15

Notes to Consolidated Financial Statements

purposes. In addition to derivative instruments that we entered into on our own behalf, we may also be a party to derivative instruments that are embedded in other contracts, and we may own common stock warrants, granted to us by lessees when structuring lease transactions, which are considered to be derivative instruments. The primary risks related to our use of derivative instruments include default by a counterparty to a hedging arrangement on its obligation and a downgrade in the credit quality of a counterparty to such an extent that our ability to sell or assign our side of the hedging transaction is impaired. While we seek to mitigate these risks by entering into hedging arrangements with counterparties that are large financial institutions that we deem to be creditworthy, it is possible that our hedging transactions, which are intended to limit losses, could adversely affect our earnings. Furthermore, if we terminate a hedging arrangement, we may be obligated to pay certain costs, such as transaction or breakage fees. We have established policies and procedures for risk assessment and the approval, reporting, and monitoring of derivative financial instrument activities.

We measure derivative instruments at fair value and record them as assets or liabilities, depending on our rights or obligations under the applicable derivative contract. Derivatives that are not designated as hedges must be adjusted to fair value through earnings. For a derivative designated and that qualified as a cash flow hedge, the effective portion of the change in fair value of the derivative is recognized in Other comprehensive (loss) income until the hedged item is recognized in earnings. The ineffective portion of a derivative’s change in fair value is immediately recognized in earnings.

The following table sets forth certain information regarding our derivative instruments (in thousands):

Derivatives Designated		Asset Derivatives Fair Value at				Liability Derivatives Fair Value at
as Hedging Instruments	Balance Sheet Location	March 31, 2013		December 31, 2012		March 31, 2013		December 31, 2012
Foreign currency contracts	Other assets, net	$	365	$	172	$	-	$	-
Foreign currency contracts	Accounts payable,
	accrued expenses and
	other liabilities	-		-		(114)		(2,361		)
Interest rate cap	Other assets, net	48		36		-		-
Interest rate swaps	Accounts payable,
	accrued expenses and
	other liabilities	-		-		(5,078)		(5,411		)
Derivatives Not Designated
as Hedging Instruments
Stock warrants	Other assets, net	1,161		1,161		-		-
Total derivatives		$	1,574	$	1,369	$	(5,192)	$	(7,772	)

All derivative transactions with an individual counterparty are governed by a master International Swap and Derivatives Association agreement, which can be considered as a master netting arrangement; however, we report all our derivative instruments on a gross basis on the balance sheet. At March 31, 2013, no cash collateral has been posted nor received for any of our derivative positions.

The following tables present the impact of derivative instruments on the consolidated financial statements (in thousands):

	Amount of Gain (Loss) Recognized in
	Other Comprehensive (Loss) Income on Derivatives (Effective Portion)
	Three Months Ended March 31,
Derivatives in Cash Flow Hedging Relationships	2013		2012
Interest rate swaps	$	226	$	48
Interest rate cap	14		(467		)
Foreign currency contracts	2,440		(568		)
Total	$	2,680	$	(987	)

CPA®:16 – Global 3/31/2013 10-Q — 16

Notes to Consolidated Financial Statements

	Amount of Gain (Loss) Reclassified from
	Other Comprehensive (Loss) Income into Income (Effective Portion)
	Three Months Ended March 31,
Derivatives in Cash Flow Hedging Relationships	2013		2012
Interest rate swaps (a)	$	(325)	$	(238	)
Foreign currency contracts (b)	278		148
Total	$	(47)	$	(90	)

__________

(a)During both the three months ended March 31, 2013 and 2012, we reclassified $0.1 million from Other comprehensive (loss) income into income related to ineffective portions of hedging relationships on certain interest rate swaps.

(b)Gains (losses) reclassified from Other comprehensive (loss) income into income for contracts that have settled are included in Other income and (expenses).

See below for information on our purposes for entering into derivative instruments, including those not designated as hedging instruments, and for information on derivative instruments owned by unconsolidated entities, which are excluded from the tables above.

Interest Rate Swaps and Caps

We are exposed to the impact of interest rate changes primarily through our borrowing activities. To limit this exposure, we attempt to obtain mortgage financing on a long-term, fixed-rate basis. However, from time to time, we or our investment partners obtain variable-rate non-recourse mortgage loans and, as a result, may enter into interest rate swap agreements or interest rate cap agreements with counterparties. Interest rate swaps, which effectively convert the variable-rate debt service obligations of the loan to a fixed rate, are agreements in which one party exchanges a stream of interest payments for a counterparty’s stream of cash flow over a specific period. The notional, or face, amount on which the swaps are based is not exchanged. Interest rate caps limit the effective borrowing rate of variable-rate debt obligations while allowing participants to share in downward shifts in interest rates. Our objective in using these derivatives is to limit our exposure to interest rate movements.

The interest rate swaps and caps that we had outstanding on our consolidated subsidiaries at March 31, 2013 are summarized as follows (currency in thousands):

		Notional		Cap	Effective	Effective	Expiration	Fair Value at
Description	Type	Amount		Rate	Interest Rate	Date	Date	March 31, 2013
1-Month London InterbankOffered Rate (“LIBOR”)	“Pay-fixed” swap	$	3,626	N/A	6.7%	2/2008	2/2018	$	(583	)
1-Month LIBOR	“Pay-fixed” swap	$	11,179	N/A	5.6%	3/2008	3/2018	(1,586		)
1-Month LIBOR	“Pay-fixed” swap	$	5,947	N/A	6.4%	7/2008	7/2018	(999		)
1-Month LIBOR	“Pay-fixed” swap	$	3,803	N/A	6.9%	3/2011	3/2021	(557		)
1-Month LIBOR	“Pay-fixed” swap	$	5,664	N/A	5.4%	11/2011	12/2020	(250		)
1-Month LIBOR	“Pay-fixed” swap	$	5,846	N/A	4.9%	12/2011	12/2021	(242		)
1-Month LIBOR	“Pay-fixed” swap	$	8,710	N/A	5.1%	3/2012	11/2019	(426		)
3-Month Euro Interbank Offered Rate (“Euribor”) (a)	Interest rate cap	€	53,083	3.0%	N/A	4/2012	4/2017	48
1-Month LIBOR	“Pay-fixed” swap	$	1,942	N/A	4.6%	5/2012	11/2017	(48		)
1-Month LIBOR	“Pay-fixed” swap	$	9,800	N/A	3.3%	6/2012	6/2017	(150		)
1-Month LIBOR	“Pay-fixed” swap	$	9,887	N/A	1.6%	9/2012	10/2020	(108		)
1-Month LIBOR	“Pay-fixed” swap	$	3,993	N/A	4.9%	2/2013	2/2023	(129		)
								$	(5,030	)

__________

(a)Fair value amount is based on the applicable exchange rate at March 31, 2013.

CPA®:16 – Global 3/31/2013 10-Q — 17

Notes to Consolidated Financial Statements

The interest rate swaps and caps that our unconsolidated jointly-owned investments had outstanding at March 31, 2013 were designated as cash flow hedges and are summarized as follows (currency in thousands):

Ownership

Effective

Interest at

Notional

Cap

Interest

Effective

Expiration

Fair Value at

Description

March 31, 2013

Type

Amount

Rate

Spread

Rate

Date

Date

March 31, 2013

3-Month LIBOR (a)

25.0%

“Pay-fixed” swap

€

111,838

N/A

N/A

5.0%- 5.6%

7/2006- 4/2008

10/2015- 7/2016

$

(14,512

)

3-Month LIBOR

27.3%

Interest rate cap

$

118,374

4%

1.2%

N/A

8/2009

8/2014

-

3-Month Euribor (a)

35.0%

“Pay-fixed” swap

€

15,970

N/A

N/A

0.9%

4/2012

7/2013

(44

)

$

(14,556

)

__________

(a)Fair value amounts are based on the applicable exchange rate at March 31, 2013.

Foreign Currency Contracts

We are exposed to foreign currency exchange rate movements, primarily in the euro and, to a lesser extent, certain other currencies. We manage foreign currency exchange rate movements by generally placing our debt service obligation on an investment in the same currency as the tenant’s rental obligation to us. This reduces our overall exposure to the net cash flow from that investment. However, we are subject to foreign currency exchange rate movements to the extent of the difference in the timing and amount of the rental obligation and the debt service. We may also face challenges with repatriating cash from our foreign investments. We may encounter instances where it is difficult to repatriate cash because of jurisdictional restrictions or because repatriating cash may result in current or future tax liabilities. Realized and unrealized gains and losses recognized in earnings related to foreign currency transactions are included in Other income and (expenses) in the consolidated financial statements.

In order to hedge certain of our foreign currency cash flow exposures, we enter into foreign currency forward contracts and collars. A foreign currency forward contract is a commitment to deliver a certain amount of currency at a certain price on a specific date in the future. By entering into forward contracts and holding them to maturity, we are locked into a future currency exchange rate for the term of the contract. A foreign currency collar consists of a written call option and a purchased put option to sell the foreign currency. These instruments lock the range in which the foreign currency exchange rate will fluctuate.

The following table presents the foreign currency derivative contracts we had outstanding and their designations at March 31, 2013 (currency in thousands, except strike price):

	Notional		Strike	Effective	Expiration	Fair Value at
Type	Amount		Price	Date	Date	March 31, 2013
Forward contracts	€	53,550	$   1.28 - 1.30	5/2012	6/2013 - 6/2017	$	(114	)
Forward contracts	9,800		1.35	12/2012	9/2017 - 3/2018	365
	€	63,350				$	251

Stock Warrants

We own stock warrants that were generally granted to us by lessees in connection with structuring initial lease transactions. These warrants are defined as derivative instruments because they are readily convertible to cash or provide for net cash settlement upon conversion.

Other

Amounts reported in Other comprehensive (loss) income related to interest rate swaps will be reclassified to interest expense as interest payments are made on our variable-rate debt. Amounts reported in Other comprehensive (loss) income related to foreign currency contracts will be reclassified to Other income and (expenses) when the hedged foreign currency proceeds from foreign operations are repatriated to the U.S. At March 31, 2013, we estimate that an additional $1.4 million will be reclassified as interest expense during the next 12 months related to our interest rate swaps and caps and less than $0.1 million will be reclassified to Other income and (expenses) related to our foreign currency contracts and collars.

CPA®:16 – Global 3/31/2013 10-Q — 18

Notes to Consolidated Financial Statements

We measure our credit exposure on a counterparty basis as the net positive aggregate estimated fair value of our derivatives, net of collateral received, if any. No collateral was received as of March 31, 2013. At March 31, 2013, our total credit exposure was $0.2 million and the maximum exposure to any single counterparty was $0.1 million.

Some of the agreements we have with our derivative counterparties contain certain credit contingent provisions that could result in a declaration of default against us regarding our derivative obligations if we either default or are capable of being declared in default on certain of our indebtedness. At March 31, 2013, we had not been declared in default on any of our derivative obligations. The estimated fair value of our derivatives that were in a net liability position was $5.3 million and $7.9 million at March 31, 2013 and December 31, 2012, respectively, which included accrued interest and any adjustment for nonperformance risk. If we had breached any of these provisions at either March 31, 2013 or December 31, 2012, we could have been required to settle our obligations under these agreements at their aggregate termination value of $5.8 million or $8.5 million, respectively.

Portfolio Concentration Risk

Concentrations of credit risk arise when a group of tenants is engaged in similar business activities or is subject to similar economic risks or conditions that could cause them to default on their lease obligations to us. We regularly monitor our portfolio to assess potential concentrations of credit risk. While we believe our portfolio is reasonably well diversified, it does contain concentrations in excess of 10%, based on the percentage of our annualized contractual minimum base rent for the first quarter of 2013, in certain areas. There were no significant changes to our portfolio concentrations at March 31, 2013 as compared to December 31, 2012.

Note 10. Debt

Non-Recourse Debt

Non-recourse debt consists of mortgage notes payable, which are collateralized by the assignment of real property and direct financing leases, with an aggregate carrying value of $2.4 billion at both March 31, 2013 and December 31, 2012. At March 31, 2013, our mortgage notes payable had fixed annual interest rates ranging from 4.3% to 7.8% and variable annual effective interest rates ranging from 1.2% to 6.9%, with maturity dates ranging from 2014 to 2031.

During the three months ended March 31, 2013, we obtained new non-recourse mortgage financing totaling $13.0 million, with a weighted-average annual interest rate and term of 4.5% and 13.0 years, respectively. Of the total financing, $4.0 million bears interest at a variable rate that has been effectively converted to a fixed annual interest rate through the use of an interest rate swap.

At March 31, 2013, two of our property-owning subsidiaries were in default on their respective non-recourse mortgage obligations with an aggregate outstanding balance of $16.7 million. In each case, the default was related to the tenant filing for bankruptcy.

During 2012, we entered into an arrangement with one of our lenders on a non-recourse financing that enabled us to repay the outstanding indebtedness of approximately $10.0 million for cash of approximately $8.7 million at a discount. As part of this arrangement, we have a contingent obligation to pay the lender any proceeds received from a sale of the previously-collateralized property in excess of $6.0 million within two years. We have accounted for this as a troubled debt restructuring and, accordingly, we have not recognized a gain on the discounted payoff. We will recognize this gain upon expiration of the contingent obligation.

Line of Credit

On May 2, 2011, we entered into the Credit Agreement with several banks, including Bank of America, N.A., which acts as the administrative agent. CPA 16 Merger Sub is the borrower, and we and the Operating Partnership are guarantors. On August 1, 2012, we amended the Credit Agreement to reduce the amount available under the secured revolving credit facility from $320.0 million to $225.0 million, to reduce our annual interest rate from LIBOR plus 3.25% to LIBOR plus 2.50%, and to decrease the number of properties in our borrowing base pool. The Credit Agreement is scheduled to mature on August 1, 2015, with an option by CPA 16 Merger Sub to extend the maturity date for an additional 12 months subject to the conditions provided in the Credit Agreement. We incurred costs of $1.1 million to amend the facility, which are being amortized over the term of the Credit Agreement.

Availability under the Credit Agreement is dependent upon the number, operating performance, cash flows and diversification of the properties comprising the borrowing base pool. At March 31, 2013, availability under the line was $211.5 million, of which we had drawn $100.0 million.

CPA®:16 – Global 3/31/2013 10-Q — 19

Notes to Consolidated Financial Statements

The Credit Agreement is fully recourse to us and contains customary affirmative and negative covenants, including covenants that restrict our and our subsidiaries’ ability to, among other things, incur additional indebtedness (other than non-recourse indebtedness), grant liens, dispose of assets, merge or consolidate, make investments, make acquisitions, pay distributions, enter into certain transactions with affiliates, and change the nature of our business or fiscal year. In addition, the Credit Agreement contains customary events of default.

The Credit Agreement stipulates certain financial covenants that require us to maintain certain ratios and benchmarks at the end of each quarter. We were in compliance with these covenants at March 31, 2013.

Scheduled Debt Principal Payments

Scheduled debt principal payments during the remainder of 2013, each of the next four calendar years following December 31, 2013, and thereafter are as follows (in thousands):

Years Ending December 31,	Total (a)
2013 (remainder)	$	33,566
2014	100,545
2015  (b)	253,637
2016	243,563
2017	623,728
Thereafter through 2031	470,891
	1,725,930
Unamortized discount, net (c)	(4,678		)
Total	$	1,721,252

(a)Certain amounts are based on the applicable foreign currency exchange rate at March 31, 2013.

(b)Includes $100.0 million outstanding under our Credit Agreement, which is scheduled to mature in 2015, unless extended pursuant to its terms.

(c)Represents the fair value adjustment of $6.0 million resulting from the assumption of property-level debt in connection with the Merger, partially offset by a $1.3 million unamortized discount on a non-recourse loan that we repurchased from the lender.

Certain amounts in the table above are based on the applicable foreign currency exchange rate at March 31, 2013. In addition, due to the strengthening of the U.S. dollar relative to foreign currencies during the three months ended March 31, 2013, debt decreased by $20.6 million from December 31, 2012 to March 31, 2013.

Note 11. Commitments and Contingencies

Various claims and lawsuits arising in the normal course of business are pending against us. The results of these proceedings are not expected to have a material adverse effect on our consolidated financial position or results of operations.

Note 12. Equity

Noncontrolling Interests

Noncontrolling interests is the portion of equity in a subsidiary not attributable, directly or indirectly, to us. There were no changes in our ownership interest in any of our consolidated subsidiaries for the three months ended March 31, 2013.

CPA®:16 – Global 3/31/2013 10-Q — 20

Notes to Consolidated Financial Statements

The following table presents a reconciliation of total equity, the equity attributable to our stockholders, and the equity attributable to noncontrolling interests (in thousands, except share amounts):

	Three Months Ended March 31, 2013
			CPA®:16 – Global		Noncontrolling
	Total Equity		Stockholders		Interests
Balance – beginning of period	$	1,423,360	$	1,327,880	$	95,480
Shares issued (1,435,476 total shares issued)	12,549		12,549		-
Contributions	180		-		180
Net income	7,393		2,742		4,651
Distributions	(37,973)		(34,149)		(3,824)
Available Cash Distribution to the advisor	(3,614)		-		(3,614)
Change in Other comprehensive (loss) income	(6,186)		(5,215)		(971)
Shares repurchased	(4,952)		(4,952)		-
Balance – end of period	$	1,390,757	$	1,298,855	$	91,902

	Three Months Ended March 31, 2012
			CPA®:16 – Global		Noncontrolling
	Total Equity		Stockholders		Interests
Balance – beginning of period	$	1,501,283	$	1,424,057	$	77,226
Shares issued (1,532,378 total shares issued)	13,250		13,250		-
Contributions	2,754		-		2,754
Net income	11,093		7,320		3,773
Distributions	(36,790)		(33,720)		(3,070)
Available Cash Distribution to the advisor	(4,281)		-		(4,281)
Change in Other comprehensive (loss) income	8,367		7,191		1,176
Shares reissued	117		117		-
Balance – end of period	$	1,495,793	$	1,418,215	$	77,578

Redeemable Noncontrolling Interest

We account for the noncontrolling interest in an entity that holds a note receivable recorded in connection with the Hellweg 2 transaction as redeemable noncontrolling interest because the transaction contains put options that, if exercised, would obligate the partners to settle in cash. The partners’ interests are reflected at estimated redemption value for all periods presented.

The following table presents a reconciliation of redeemable noncontrolling interest (in thousands):

	Three Months Ended March 31,
	2013		2012
Balance – beginning of period	$	21,747	$	21,306
Net income	(1,845)		-
Contributions	2,300		-
Distributions	(465)		-
Foreign currency translation adjustment	(643)		640
Balance – end of period	$	21,094	$	21,946

CPA®:16 – Global 3/31/2013 10-Q — 21

Notes to Consolidated Financial Statements

Reclassifications Out of Accumulated Other Comprehensive Loss

The following table presents a reconciliation of changes in accumulated other comprehensive loss by component (in thousands):

	Three Months Ended March 31, 2013
	Gains and Losses on Derivative Instruments			Unrealized Gains and Losses on Marketable Securities			Foreign Currency Translation Adjustments			Total
Balance – beginning of period	$	(10,472	)	$	(10	)	$	(16,561	)	$	(27,043	)
Other comprehensive (loss) income beforereclassifications	3,134			3			(8,406		)	(5,269		)
Amounts reclassified from accumulatedother comprehensive loss:
Interest expense	325			-			-			325
Other income and (expenses)	(278		)	-			-			(278		)
Net income from equity investments in real estate	7			-			-			7
Total	54			-			-			54
Net current-period Other comprehensive (loss) income	3,188			3			(8,406		)	(5,215		)
Balance – end of period	$	(7,284	)	$	(7	)	$	(24,967	)	$	(32,258	)

	Three Months Ended March 31, 2012
	Gains and Losses on Derivative Instruments			Unrealized Gains and Losses on Marketable Securities			Foreign Currency Translation Adjustments			Total
Balance – beginning of period	$	(4,622	)	$	(52	)	$	(22,856	)	$	(27,530	)
Other comprehensive (loss) incomebefore reclassifications	(1,479		)	(17		)	8,303			6,807
Amounts reclassified from accumulated othercomprehensive loss:
Interest expense	238			-			-			238
Other income and (expenses)	(148		)	-			-			(148		)
Net income from equity investments in real estate	294			-			-			294
Total	384			-			-			384
Net current-period Other comprehensive (loss) income	(1,095		)	(17		)	8,303			7,191
Balance – end of period	$	(5,717	)	$	(69	)	$	(14,553	)	$	(20,339	)

Note 13. Discontinued Operations

From time to time, we decide to sell a property. We may make a decision to dispose of a property when it is vacant as a result of tenants vacating space, tenants electing not to renew their leases, tenant insolvency, or lease rejection in the bankruptcy process. In such cases, we assess whether we can obtain the highest value from the property by selling it, as opposed to re-leasing it. When it is appropriate to do so, upon the evaluation of the disposition of long-lived assets, we classify the property as an asset held for sale on our consolidated balance sheet and the current and prior period results of operations of the property are reclassified as discontinued operations.

CPA®:16 – Global 3/31/2013 10-Q — 22

Notes to Consolidated Financial Statements

The results of operations for properties that are held for sale or have been sold and with which we have no continuing involvement are reflected in the consolidated financial statements as discontinued operations and are summarized as follows (in thousands, net of tax):

	Three Months Ended March 31,
	2013			2012
Revenues	$	537		$	2,114
Expenses	(318		)	(4,113		)
Gain (loss) on sale of real estate	2,701			(2,191		)
Impairment charges	-			(485		)
Income (loss) from discontinued operations	$	2,920		$	(4,675	)

2013 — During the three months ended March 31, 2013, we sold four domestic properties for an aggregate of $27.9 million, net of selling costs, and recognized a net gain on the sales totaling $2.7 million, excluding an impairment charge of $1.2 million previously recognized during 2012.

2012 — During the three months ended March 31, 2012, we sold five domestic properties for an aggregate of $11.8 million, net of selling costs, and recognized a net loss on the sales totaling $2.2 million and lease termination income totaling $0.8 million.

We sold six additional properties during 2012 subsequent to first quarter of 2012. The results of operations for these properties are included in Income (loss) from discontinued operations, net of tax in the consolidated financial statements for the three months ended March 31, 2012.

Note 14. Subsequent Event

In April 2013, we entered into an agreement to sell and subsequently sold five properties (“Sold Properties”) to the city of Waterloo, Wisconsin for an amount that was approximately $5.5 million below the properties’ aggregate carrying value at March 31, 2013. The determination to sell these properties in April 2013 was in conjunction with a modification to the lease agreement with the tenant at the Sold Properties, which requires that the tenant pay all amounts owed relating to the Sold Properties over the remaining lease term (“Modified Lease Payments”). As a result, the difference between the carrying value and the fair value of the consideration we expect to receive, inclusive of the Modified Lease Payments, is not expected to be material and will be recognized in the second quarter of 2013.

CPA®:16 – Global 3/31/2013 10-Q — 23

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Management’s discussion and analysis of financial condition and results of operations (“MD&A”) is intended to provide the reader with information that will assist in understanding our financial statements and the reasons for changes in certain key components of our financial statements from period to period. MD&A also provides the reader with our perspective on our financial position and liquidity, as well as certain other factors that may affect our future results. Our MD&A should be read in conjunction with our 2012 Annual Report.

Business Overview

As described in more detail in Item 1 in our 2012 Annual Report, we are a publicly owned, non-listed REIT that invests in commercial properties leased to companies domestically and internationally. As a REIT, we are not subject to U.S. federal income taxation as long as we satisfy certain requirements, principally relating to the nature of our income, the level of our distributions, and other factors. We earn revenue principally by leasing the properties we own to single corporate tenants, primarily on a triple-net lease basis, which requires the tenant to pay substantially all of the costs associated with operating and maintaining the property. Revenue is subject to fluctuation because of the timing of new lease transactions, lease terminations, lease expirations, contractual rent adjustments, tenant defaults, and sales of properties.

Financial and Operating Highlights

(In thousands)

	Three Months Ended March 31,
	2013			2012
Total revenues	$	79,542		$	82,102
Net income attributable to CPA®:16 – Global stockholders	2,742			7,320
Net cash provided by operating activities	48,163			46,512
Net cash provided by investing activities	32,196			38,775
Net cash used in financing activities	(81,409		)	(113,124		)
Cash distributions paid	33,964			33,423
Supplemental financial measure:
Modified funds from operations (a)	40,417			40,962

(a)We consider the performance metrics listed above, including Modified funds from operations (“MFFO”), a supplemental measure that is not defined by GAAP (“non-GAAP”), to be important measures in the evaluation of our results of operations and capital resources. We evaluate our results of operations with a primary focus on the ability to generate cash flow necessary to meet our objectives of funding distributions to stockholders. See Supplemental Financial Measures below for our definition of this non-GAAP measure and a reconciliation to its most directly comparable GAAP measure.

Total revenues and Net income attributable to CPA®:16 – Global stockholders decreased for the three months ended March 31, 2013 as compared to the same period in 2012, primarily due to the impact of Carrefour France, SAS, one of our lessees, declining to exercise its lease termination options on five properties at June 30, 2012, thereby increasing the period over which straight-line revenue is recognized, and, in the case of Net income attributable to CPA®:16 – Global stockholders, impairment charges recognized during the three months ended March 31, 2013. These decreases were partially offset by the favorable impact of foreign currency fluctuations on operations and, in the case of Net income attributable to CPA®:16 – Global stockholders, the gain on the sales of several properties recognized during the three months ended March 31, 2013.

Net cash provided by operating activities increased for the three months ended March 31, 2013 as compared to the same period in 2012. An amendment to the advisory agreement in 2012 changed the basis of allocating advisor personnel expenses amongst WPC and the Managed REITs from individual time records to trailing four quarters of reported revenues, which increased management expenses for the three months ended March 31, 2013 as compared to the same period in 2012. However, at March 31, 2013, we had not yet paid the advisor for expenses incurred during the three months then ended, resulting in the increase in Net cash provided by operating activities for the three months ended March 31, 2013 as compared to the same period in 2012.

CPA®:16 – Global 3/31/2013 10-Q — 24

Our MFFO supplemental measure decreased for the three months ended March 31, 2013 as compared to the same period in 2012, primarily as a result of the decrease in revenue as described above.

Our quarterly cash distribution was $0.1678 per share for the first quarter of 2013, which equates to $0.6712 per share on an annualized basis.

Recent Developments

Possible Liquidity Transaction

We have previously stated our intention to consider liquidity events for investors generally commencing eight to twelve years following the investment of substantially all of the net proceeds from our initial public offering. We substantially invested those net proceeds as of December 2005. During the first quarter of 2013, our board of directors formed a special committee of independent directors to explore possible liquidity transactions, including transactions which may be proposed by our advisor. The special committee has retained legal and financial advisors to assist the committee in its review. A liquidity transaction could take a variety of forms, including, without limitation, a merger, sale of assets either on a portfolio basis or individually, or a listing of our shares on a stock exchange, and could involve our advisor and/or one or more entities managed by our advisor. The execution of a liquidity transaction could be affected by a variety of factors, such as conditions in the economy, stock market volatility, conditions in the commercial real estate market, and the performance of our tenants and the availability of financing on acceptable terms, many of which are factors outside of our control. There can be no assurance that a liquidity transaction will occur in the near future or at all.

Net Asset Values

The advisor generally calculates our estimated NAV by relying in part on an estimate of the fair market value of our real estate provided by a third party, adjusted to give effect to the estimated fair value of mortgages encumbering our assets (also provided by a third party) as well as other adjustments. Our NAV is based on a number of variables, including, among others, changes in the credit profiles of individual tenants; lease terms, expirations, and non-renewals; lending credit spreads; foreign currency exchange rates; potential asset sales; and tenant defaults and bankruptcies. We do not control all of these variables and, as such, cannot predict how they will change in the future.

The advisor usually calculates our NAV annually as of year-end. Our most recently published estimated NAV as of December 31, 2012 was $8.70 per share, compared to $9.10 per share as of December 31, 2011. Declines in the real estate value from approximately $3.73 billion at December 31, 2011 to approximately $3.61 billion at December 31, 2012 were somewhat offset by improvements in the fair value of our mortgage debt from approximately $1.74 billion to approximately $1.70 billion and a reduction in the outstanding balance of our Credit Agreement. The decline in the real estate value was primarily driven by circumstances related to specific assets, including notification by several tenants that they intend to vacate their properties at the end of their respective lease terms (beginning in 2015), asset sales, including at prices that were below the appraised values of the properties as of December 31, 2011, and tenant credit issues.

CPA®:16 – Global 3/31/2013 10-Q — 25

Results of Operations

The following tables present other operating data that management finds useful in evaluating results of operations:

	March 31, 2013	December 31, 2012
Occupancy rate (a)	97.4%	96.9%
Number of leased properties (a)	494	498
Number of operating properties (b)	2	2

	Three Months Ended March 31,
	2013		2012
Financing obtained (in millions)	$	13.0	$	11.1
Average U.S. dollar/euro exchange rate (c)	$	1.3209	$	1.3110
U.S. Consumer Price Index (“CPI”) (d)	232.8		229.4

(a)These amounts reflect properties in which we had a full or partial ownership interest.

(b)For all periods presented, operating properties comprise two hotels, both of which are managed by third parties.

(c)The average conversion rate for the U.S. dollar in relation to the euro increased by approximately 0.8% during the three months ended March 31, 2013 in comparison to the same period in 2012, resulting in a positive impact on lease revenues in for our euro-denominated investments in the current year period.

(d)Most of our domestic lease agreements include contractual increases indexed to the change in the CPI.

CPA®:16 – Global 3/31/2013 10-Q — 26

The following table sets forth the net lease revenues (i.e., rental income and interest income from direct financing leases) that we earned from lease obligations through our consolidated real estate investments (in thousands):

	Three Months Ended March 31,
Lessee	2013		2012
Hellweg Die Profi-Baumärkte GmbH & Co. KG (Hellweg 2) (a) (b)	$	8,952	$	8,695
Dick’s Sporting Goods, Inc. (b)	2,687		2,666
Telcordia Technologies, Inc.	2,604		2,540
Carrefour France, SAS (a) (c)	2,438		5,735
SoHo House/SHG Acquisition (UK) Limited	1,964		1,964
Nordic Atlanta Cold Storage, LLC	1,886		1,795
Tesco plc (a) (b)	1,886		1,828
Berry Plastics Corporation (b)	1,765		1,722
LFD Manufacturing Ltd., IDS Logistics (Thailand) Ltd., andIDS Manufacturing SDN BHD (a)	1,379		1,361
Fraikin SAS (a)	1,337		1,271
The Talaria Company (Hinckley) (b)	1,293		1,110
MetoKote Corp., MetoKote Canada Limited, and MetoKote de Mexico (a)	1,223		1,218
Perkin Elmer, Inc.	1,121		1,094
Best Brands Corp.	1,061		1,025
Ply Gem Industries, Inc. (a) (d)	1,036		1,076
Huntsman International, LLC	1,006		1,006
Caremark Rx, Inc.	985		990
Universal Technical Institute of California, Inc.	932		919
Bob’s Discount Furniture, LLC	920		930
TRW Vehicle Safety Systems Inc.	892		892
Kings Super Markets Inc.	888		896
Performance Fibers GmbH (a) (d)	825		941
Finisar Corporation	804		813
Other (a) (b)	30,156		29,481
	$	70,040	$	71,968

(a)Amounts are subject to fluctuations in foreign currency exchange rates. The average conversion rate for the U.S. dollar in relation to the euro increased by approximately 0.8% during the three months ended March 31, 2013 in comparison to the same period in 2012, resulting in a positive impact on lease revenues for our euro-denominated investments in the current year period.

(b)These revenues are generated in consolidated investments, generally with our affiliates, and on a combined basis include revenues applicable to noncontrolling interests totaling $9.6 million and $9.3 million for the three months ended March 31, 2013 and 2012, respectively.

(c)This decrease was due to the impact of the lessee declining to exercise its lease termination options on five properties at June 30, 2012. As a result, the straight-line periods over which revenue is to be recognized for the leases were increased.

(d)This decrease was primarily due to an adjustment made in the first quarter of 2012 related to amendments and adjustments to direct financing leases.

CPA®:16 – Global 3/31/2013 10-Q — 27

We recognize income from equity investments in real estate, of which lease revenues are a significant component. The following table sets forth the net lease revenues earned by these investments from both continuing and discontinued operations. Amounts provided are the total amounts attributable to the investments and do not represent our proportionate share (dollars in thousands):

	Ownership Interest		Three Months Ended March 31,
Lessee	at March 31, 2013		2013		2012
U-Haul Moving Partners, Inc. and Mercury Partners, L.P.	31	%	$	8,122	$	8,122
The New York Times Company	27	%	6,924		6,867
OBI A.G. (a)	25	%	4,181		4,022
Hellweg Die Profi-Baumärkte GmbH & Co. KG (Hellweg 1) (a) (b)	25	%	3,783		2,988
True Value Company	50	%	3,553		3,581
Advanced Micro Devices, Inc.	67	%	2,986		2,986
Pohjola Non-life Insurance Company (a)	40	%	2,293		2,242
TietoEnator Plc (a)	40	%	2,149		2,109
Police Prefecture, French Government (a)	50	%	2,096		1,946
Schuler A.G. (a)	33	%	1,675		1,549
Frontier Spinning Mills, Inc.	40	%	1,141		1,160
Actebis Peacock GmbH (a)	30	%	1,013		998
Del Monte Corporation	50	%	882		882
Actuant Corporation (a)	50	%	451		360
Consolidated Systems, Inc.	40	%	448		469
Barth Europa Transporte e.K/MSR Technologies GmbH (a)	33	%	301		305
Town Sports International Holdings, Inc.	56	%	286		288
Thomson Broadcast, Veolia Transport, and Marchal Levage(formerly Thales S.A.) (a)	35	%	160		331
			$	42,444	$	41,205

(a)Amounts are subject to fluctuations in foreign currency exchange rates. The average conversion rate for the U.S. dollar in relation to the euro increased by approximately 0.8% during the three months ended March 31, 2013 in comparison to the same period in 2012, resulting in a positive impact on lease revenues for our euro-denominated investments in the current year period.

(b)This increase was primarily due to an adjustment made in the first quarter of 2012 related to amendments and adjustments to direct financing leases.

Lease Revenues

As of March 31, 2013, approximately 75% of our net leases, based on annualized contractual minimum base rent, provide for adjustments based on formulas indexed to changes in the CPI, or other similar indices for the jurisdiction in which the property is located, some of which have caps and/or floors. In addition, approximately 23% of our net leases on that same basis have fixed rent adjustments with contractual minimum base rent scheduled to increase by an average of 2% in the next 12 months. We own international investments and, therefore, lease revenues from these investments are subject to fluctuations in exchange rate movements in foreign currencies, primarily the euro.

During the three months ended March 31, 2013, we signed one lease, a short-term extension with an existing tenant, totaling less than 0.1 million square feet of leased space. The new rent for the lease was $12.50 per square foot and the former rent was $11.34 per square foot. The tenant did not receive any tenant improvement allowances or concessions.

During the three months ended March 31, 2012, we signed two leases, totaling approximately 0.4 million square feet of leased space. Both leases were renewals or short-term extensions with existing tenants. The average rent for these leases increased from $4.45 per square foot to $5.03 per square foot after the renewals. None of the tenants received tenant improvement allowances or concessions.

For the three months ended March 31, 2013 as compared to the same period in 2012, lease revenues decreased by $1.9 million, primarily due to the impact of Carrefour France, SAS declining to exercise its lease termination options on five properties at June 30, 2012 totaling $2.7 million and the effects of lease restructurings, rejections, and expirations totaling $0.9 million. These decreases

CPA®:16 – Global 3/31/2013 10-Q — 28

were partially offset by scheduled rent increases of $1.3 million and the favorable impact of foreign currency fluctuations of $0.2 million.

General and Administrative

For the three months ended March 31, 2013 as compared to the same period in 2012, general and administrative expense increased by $1.2 million, primarily due to an increase in management expenses of $1.7 million. Management expenses include our reimbursements to the advisor for the allocated costs of personnel and overhead in providing management of our day-to-day operations and increased primarily due to an amendment to the advisory agreement in 2012 related to the basis of allocating advisor personnel expenses amongst WPC and the Managed REITs from individual time records to trailing four quarters of reported revenues (Note 3). This increase was partially offset by a decrease in professional fees of $0.6 million. Professional fees include legal, accounting, and investor-related expenses incurred in the normal course of business.

Depreciation and Amortization

For the three months ended March 31, 2013 as compared to the same period in 2012, depreciation and amortization decreased by $1.0 million. The three months ended March 31, 2012 included a write-off of $0.6 million of lease intangibles related to a tenant bankruptcy.

Impairment Charges

During the three months ended March 31, 2013, we recognized an impairment charge of $9.3 million on a property in order to reduce its carrying value to its estimated fair value due to the property’s tenant filing for bankruptcy (Note 8).

As part of our portfolio management strategy, we exit from investments containing lower quality, lower growth assets. We have been marketing several properties for sale. We evaluate all potential sale opportunities taking into account the long-term growth prospects of assets being sold, the use of proceeds, and the impact to our balance sheet, in addition to the impact on operating results. In our experience, it is difficult for many buyers to complete these transactions in the timing contemplated or at all. Where the undiscounted cash flows, when considering and evaluating the various alternative courses of action that may occur, are less than the assets’ carrying values, we recognize impairment charges. Further, it is possible that we may sell an asset for a price below its estimated fair value and record a loss on sale.

Net Income from Equity Investments in Real Estate

Net income from equity investments in real estate represents our proportionate share of net income or loss (revenue less expenses) from investments entered into with affiliates or third parties in which we have a noncontrolling interest but over which we exercise significant influence.

For the three months ended March 31, 2013 as compared to the same period in 2012, net income from equity investments in real estate decreased by $2.0 million, primarily due to our share of non-recurring lease termination income received from the Thomson Broadcast, Veolia Transport, and Marchal Levage (formerly Thales S.A.) jointly-owned investment in February 2012 of $1.7 million.

Other Income and (Expenses)

Other income and (expenses) generally consists of gains and losses on foreign currency transactions and derivative instruments. We and certain of our foreign consolidated subsidiaries have intercompany debt and/or advances that are not denominated in the relevant entity’s functional currency. When the intercompany debt or accrued interest thereon is remeasured against the functional currency of the entity, a gain or loss may result. For intercompany transactions that are of a long-term investment nature, the gain or loss is recognized as a cumulative translation adjustment in Other comprehensive (loss) income. We also recognize gains or losses on foreign currency transactions when we repatriate cash from our foreign investments. In addition, we have certain derivative instruments, including common stock warrants, for which realized and unrealized gains and losses are included in earnings. The timing and amount of such gains or losses cannot always be estimated and are subject to fluctuation.

For the three months ended March 31, 2013, we recognized net other expense of $0.8 million, which was comprised primarily of net unrealized foreign currency transaction losses of $1.5 million, partially offset by net realized foreign currency transaction gains of $0.4 million and net realized gains related to derivatives of $0.3 million. During the comparable prior year period, we recognized net other income of $0.9 million, which was comprised primarily of net unrealized foreign currency transaction gains of $0.9 million and

CPA®:16 – Global 3/31/2013 10-Q — 29

net realized gains related to derivatives of $0.1 million, partially offset by net realized foreign currency transaction losses of $0.4 million.

Interest Expense

For the three months ended March 31, 2013 as compared to the same period in 2012, interest expense decreased by $2.9 million, primarily due to the impact of lower interest rates on the variable-rate debt encumbering the properties leased to Carrefour SAS totaling $0.9 million, the amendment to the Credit Agreement executed on August 1, 2012 totaling $0.8 million, and the repayment of several non-recourse mortgage loans during 2012 totaling $0.6 million.

Provision for Income Taxes

For the three months ended March 31, 2013 as compared to the same period in 2012, provision for income taxes increased by $0.8 million, primarily due to back trade taxes incurred by our third-party noncontrolling interest partner totaling $2.4 million, partially offset by trade taxes incurred by our Hellweg 2 investment during the first quarter of 2012 totaling $1.1 million not recurring in the current year period.

Income (Loss) from Discontinued Operations, Net of Tax

During the three months ended March 31, 2013, we recognized income from discontinued operations of $2.9 million, primarily due to the net gain on sale of real estate totaling $2.7 million from the disposition of four properties.

During the three months ended March 31, 2012, we recognized a loss from discontinued operations of $4.7 million, primarily due to the net loss on sale of real estate totaling $2.2 million from the disposition of five properties, loss generated from the operations of discontinued properties of $2.0 million, and impairment charges recognized totaling $0.5 million.

Net Income Attributable to Noncontrolling Interests

For the three months ended March 31, 2013 as compared to the same period in 2012, net income attributable to noncontrolling interests increased by $0.9 million, primarily due to a decrease in foreign tax estimates attributable to our Hellweg 2 jointly-owned investment affiliates totaling $1.3 million, partially offset by a decrease in the Available Cash Distribution paid to the Special General Partner of $0.7 million.

Net Loss (Income) Attributable to Redeemable Noncontrolling Interest

For the three months ended March 31, 2013, we recognized a loss attributable to redeemable noncontrolling interest of $1.9 million, primarily due to back trade taxes paid by our third-party noncontrolling interest partner totaling $2.4 million, offset by income attributable to redeemable noncontrolling interest totaling $0.5 million.

Net Income Attributable to CPA®:16 – Global Stockholders

For the three months ended March 31, 2013 as compared to the same period in 2012, the resulting net income attributable to CPA®:16 – Global stockholders decreased by $4.6 million.

Modified Funds from Operations (“MFFO”)

MFFO is a non-GAAP measure we use to evaluate our business. For a definition of MFFO and a reconciliation to net income attributable to CPA®:16 – Global stockholders, see Supplemental Financial Measures below.

For the three months ended March 31, 2013 as compared to the same period in 2012, MFFO decreased by $0.5 million, primarily due to the decrease in lease revenues, as described above.

CPA®:16 – Global 3/31/2013 10-Q — 30

Financial Condition

Sources and Uses of Cash during the Period

We use the cash flow generated from our investments to meet our operating expenses, service debt, and fund distributions to stockholders. Our cash flows fluctuate period to period due to a number of factors, which may include, among other things, the timing of purchases and sales of real estate, the timing of the receipt of proceeds from and the repayment of non-recourse mortgage loans and receipt of lease revenues, the advisor’s annual election to receive fees in shares of our common stock or cash, the timing and characterization of distributions from equity investments in real estate, payment to the advisor of the annual installment of deferred acquisition fees and interest thereon in the first quarter, payment of Available Cash Distributions, and changes in foreign currency exchange rates. Despite these fluctuations, we believe that we will generate sufficient cash from operations and from equity distributions in excess of equity income in real estate to meet our normal recurring short-term and long-term liquidity needs. We may also use existing cash resources, the proceeds of non-recourse mortgage loans, unused capacity on our line of credit, and the issuance of additional equity securities to meet these needs. We assess our ability to access capital on an ongoing basis. Our sources and uses of cash during the period are described below.

Operating Activities

Net cash provided by operating activities during the three months ended March 31, 2013 increased by $1.7 million compared to the same period in 2012. An amendment to the advisory agreement in 2012 changed the basis of allocating advisor personnel expenses amongst the Managed REITs from individual time records to trailing four quarters of reported revenues, which increased management expenses for the three months ended March 31, 2013 as compared to the same period in 2012. However, at March 31, 2013, we had not yet paid the advisor for expenses incurred during the three months then ended, resulting in the increase in Net cash provided by operating activities for the three months ended March 31, 2013 as compared to the same period in 2012. During the three months ended March 31, 2013, we used cash flows provided by operating activities of $48.2 million primarily to fund net cash distributions to stockholders of $25.2 million, which excluded $8.8 million in distributions that were reinvested by stockholders through our distribution reinvestment and share purchase plan (“DRIP”), and to pay distributions of $7.9 million to affiliates that hold noncontrolling interests in various entities with us. For 2013, the advisor elected to receive its asset management fees in shares of our common stock and as a result, during the three months ended March 31, 2013 we paid asset management fees of $3.8 million through the issuance of stock rather than in cash.

Investing Activities

Our investing activities are generally comprised of real estate-related transactions (purchases and sales), payment of our annual installment of deferred acquisition fees to the advisor, and capitalized property-related costs. We received $27.9 million in connection with the sale of four properties (Note 13) and $4.4 million in distributions from equity investments in real estate in excess of equity in net income. Funds totaling $3.9 million and $3.0 million were invested in and released from, respectively, lender-held investment accounts. In January 2013, we paid $0.5 million as our annual installment of deferred acquisition fees to the advisor.

Financing Activities

As noted above, during the three months ended March 31, 2013, we paid distributions to stockholders and affiliates that hold noncontrolling interests in various entities with us. We drew down $25.0 million from our line of credit. We also repaid $68.0 million on our line of credit, prepaid several non-recourse mortgages totaling $4.9 million, and made scheduled mortgage principal installments totaling $10.6 million. We received proceeds of $13.0 million from new financing obtained on two properties, $8.8 million as a result of issuing shares through our DRIP, and $2.5 million in contributions from noncontrolling interests.

We maintain a quarterly redemption plan pursuant to which we may, at the discretion of our board of directors, redeem shares of our common stock from stockholders seeking liquidity. During the first quarter of 2013, we received requests to redeem 584,710 shares of our common stock pursuant to our redemption plan and we redeemed these shares at an average price per share of $8.47, which is net of redemption fees, totaling $5.0 million.

CPA®:16 – Global 3/31/2013 10-Q — 31

Summary of Financing

The table below summarizes our non-recourse debt and line of credit (dollars in thousands):

	March 31, 2013		December 31, 2012
Carrying Value
Fixed rate	$	1,458,141	$	1,481,089
Variable rate (a)	263,111		306,091
Total	$	1,721,252	$	1,787,180
Percent of Total Debt
Fixed rate	85%		83%
Variable rate (a)	15%		17%
	100%		100%
Weighted-Average Interest Rate at End of Period
Fixed rate	5.8%		5.8%
Variable rate (a)	3.2%		3.1%

(a)Variable-rate debt at March 31, 2013 included (i) $100.0 million outstanding under our line of credit; (ii) $70.6 million that has been effectively converted to a fixed rate through interest rate swap derivative instruments; (iii) $68.1 million that was subject to an interest rate cap, but for which the applicable interest rate was below the effective interest rate of the cap at March 31, 2013; (iv) $12.4 million in non-recourse mortgage loan obligations that bore interest at floating rates; and (v) $12.0 million in non-recourse mortgage loan obligations that bore interest at fixed rates but have interest rate reset features that may change the interest rates to then-prevailing market fixed rates (subject to specific caps) at certain points during their terms. At March 31, 2013, we had no interest rate resets or expirations of interest rate swaps or caps scheduled to occur during the next 12 months.

Cash Resources

At March 31, 2013, our cash resources consisted of cash and cash equivalents totaling $64.2 million. Of this amount, $41.2 million, at then-current exchange rates, was held by foreign subsidiaries, but we could be subject to restrictions or significant costs should we decide to repatriate these amounts. We also had a line of credit with unused capacity of $111.5 million, as well as unleveraged properties that had an aggregate carrying value of $103.6 million at March 31, 2013, although there can be no assurance that we would be able to obtain financing for these properties. Our cash resources can be used for working capital needs and other commitments.

Cash Requirements

During the next 12 months, we expect that our cash payments will include paying distributions to our stockholders and to our affiliates that hold noncontrolling interests in our subsidiaries, making scheduled mortgage loan principal payments, as well as other normal recurring operating expenses. No balloon payments on our consolidated mortgage loan obligations are due during the next 12 months; however, our share of balloon payments due during the next 12 months on our unconsolidated jointly-owned investments totals $7.2 million. Our advisor is actively seeking to refinance certain of these loans, although there can be no assurance that it will be able to do so on favorable terms, if at all.

We expect to fund future investments, any capital expenditures on existing properties, and scheduled debt maturities on non-recourse mortgage loans through cash generated from operations, the use of our cash reserves, or unused amounts on our Credit Agreement.

CPA®:16 – Global 3/31/2013 10-Q — 32

Off-Balance Sheet Arrangements and Contractual Obligations

The table below summarizes our debt, off-balance sheet arrangements, and other contractual obligations at March 31, 2013 and the effect that these arrangements and obligations are expected to have on our liquidity and cash flow in the specified future periods (in thousands):

			Less than						More than
	Total		1 year		1-3 years		3-5 years		5 years
Non-recourse debt and line of credit – principal (a) (b)	$	1,725,930	$	45,350	$	353,872	$	874,784	$	451,924
Deferred acquisition fees – principal	1,212		426		773		13		-
Interest on borrowings and deferred acquisition fees (c)	449,524		93,121		168,363		101,973		86,067
Subordinated disposition fees (d)	1,197		-		1,197		-		-
Operating and other lease commitments (e)	59,065		2,603		4,864		6,189		45,409
	$	2,236,928	$	141,500	$	529,069	$	982,959	$	583,400

(a)Excludes unamortized discount, net of $4.7 million (Note 10).

(b)Includes $100.0 million outstanding under our $225.0 million Credit Agreement, which is scheduled to mature on August 1, 2015.

(c)Interest on an unhedged variable-rate debt obligation was calculated using the variable interest rate and balance outstanding at March 31, 2013.

(d)Represents amounts that may be payable to the Special General Partner in connection with sales of assets, if minimum stockholder returns are satisfied. There can be no assurance as to whether or when these fees will be paid (Note 3).

(e)Operating and other lease commitments consist primarily of rent obligations under ground leases and our share of future minimum rents payable pursuant to the advisory agreement for the purpose of leasing office space used for the administration of real estate entities. Amounts are allocated among the Managed REITs based on gross revenues and are adjusted quarterly. Rental obligations under ground leases are inclusive of amounts attributable to noncontrolling interests of approximately $11.7 million.

Amounts in the table above related to our foreign operations are based on the exchange rate of the local currencies at March 31, 2013, which consisted primarily of the euro. At March 31, 2013, we had no material capital lease obligations for which we were the lessee, either individually or in the aggregate.

Equity Investments

We have unconsolidated investments that own single-tenant properties net leased to companies. Generally, the underlying investments are jointly-owned with our affiliates. At March 31, 2013, on a combined basis, these investments had total assets and third-party debt of $1.6 billion and $932.2 million, respectively. At that date, our pro rata share of their aggregate debt was $337.9 million. Cash requirements with respect to our share of these debt obligations are discussed above under Cash Requirements.

Supplemental Financial Measures

In the real estate industry, analysts and investors employ certain non-GAAP supplemental financial measures in order to facilitate meaningful comparisons between periods and among peer companies. Additionally, in the formulation of our goals and in the evaluation of the effectiveness of our strategies, we use supplemental non-GAAP measures which are uniquely defined by our management. We believe these measures are useful to investors to consider because they may assist them to better understand and measure the performance of our business over time and against similar companies. A description of these non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures are provided below.

Funds from Operations (“FFO”) and Modified Funds from Operations (“MFFO”)

Due to certain unique operating characteristics of real estate companies, as discussed below, the National Association of Real Estate Investment Trusts, Inc., (“NAREIT”), an industry trade group, has promulgated a measure known as FFO, which we believe to be an appropriate supplemental measure to reflect the operating performance of a REIT. The use of FFO is recommended by the REIT industry as a supplemental performance measure. FFO is not equivalent to nor a substitute for net income or loss as determined under GAAP.

CPA®:16 – Global 3/31/2013 10-Q — 33

We define FFO consistent with the standards established by the White Paper on FFO approved by the Board of Governors of NAREIT, as revised in February 2004, or the White Paper. The White Paper defines FFO as net income or loss computed in accordance with GAAP, excluding gains or losses from sales of property, impairment charges on real estate and depreciation and amortization; and after adjustments for unconsolidated partnerships and jointly-owned investments. Adjustments for unconsolidated partnerships and jointly-owned investments are calculated to reflect FFO.

The historical accounting convention used for real estate assets requires straight-line depreciation of buildings and improvements, which implies that the value of real estate assets diminishes predictably over time, especially if such assets are not adequately maintained or repaired and renovated as required by relevant circumstances and/or is requested or required by lessees for operational purposes in order to maintain the value disclosed. We believe that, since real estate values historically rise and fall with market conditions, including inflation, interest rates, the business cycle, unemployment and consumer spending, presentations of operating results for a REIT using historical accounting for depreciation may be less informative. Historical accounting for real estate involves the use of GAAP. Any other method of accounting for real estate such as the fair value method cannot be construed to be any more accurate or relevant than the comparable methodologies of real estate valuation found in GAAP. Nevertheless, we believe that the use of FFO, which excludes the impact of real estate-related depreciation and amortization as well as impairment charges of real estate-related assets, provides a more complete understanding of our performance to investors and to management, and when compared year over year, reflects the impact on our operations from trends in occupancy rates, rental rates, operating costs, general and administrative expenses, and interest costs, which may not be immediately apparent from net income. In particular, we believe it is appropriate to disregard impairment charges, as this is a fair value adjustment that is largely based on market fluctuations and assessments regarding general market conditions which can change over time. An asset will only be evaluated for impairment if certain impairment indications exist and if the carrying, or book value, exceeds the total estimated undiscounted future cash flows (including net rental and lease revenues, net proceeds on the sale of the property, and any other ancillary cash flows at a property or group level under GAAP) from such asset. Investors should note, however, that determinations of whether impairment charges have been incurred are based partly on anticipated operating performance, because estimated undiscounted future cash flows from a property, including estimated future net rental and lease revenues, net proceeds on the sale of the property, and certain other ancillary cash flows, are taken into account in determining whether an impairment charge has been incurred. While impairment charges are excluded from the calculation of FFO described above, investors are cautioned that, due to the fact that impairments are based on estimated future undiscounted cash flows and the relatively limited term of our operations, it could be difficult to recover any impairment charges. However, FFO and MFFO, as described below, should not be construed to be more relevant or accurate than the current GAAP methodology in calculating net income or in its applicability in evaluating the operating performance of the company. The method utilized to evaluate the value and performance of real estate under GAAP should be construed as a more relevant measure of operational performance and considered more prominently than the non-GAAP FFO and MFFO measures and the adjustments to GAAP in calculating FFO and MFFO.

Changes in the accounting and reporting promulgations under GAAP (for acquisition fees and expenses from a capitalization/depreciation model to an expensed-as-incurred model) were put into effect in 2009. These other changes to GAAP accounting for real estate subsequent to the establishment of NAREIT’s definition of FFO have prompted an increase in cash-settled expenses, such as acquisition fees, that are typically accounted for as operating expenses. Management believes these fees and expenses do not affect our overall long-term operating performance. Publicly registered, non-listed REITs typically have a significant amount of acquisition activity and are substantially more dynamic during their initial years of investment and operation. In addition, non-listed REITs typically have a limited life with targeted exit strategies after acquisition activity ceases. Due to the above factors and other unique features of publicly registered, non-listed REITs, the Investment Program Association (“IPA”), an industry trade group, has standardized a measure known as MFFO, which the IPA has recommended as a supplemental measure for publicly registered non-listed REITs and which we believe to be another appropriate supplemental measure to reflect the operating performance of a non-listed REIT having the characteristics described above. MFFO is not equivalent to our net income or loss as determined under GAAP, and MFFO may not be a useful measure of the impact of long-term operating performance on value if we do not continue to operate with a limited life and targeted exit strategy, as currently intended. We believe that, because MFFO excludes costs that we consider more reflective of investing activities and other non-operating items included in FFO and also excludes acquisition fees and expenses that affect our operations only in periods in which properties are acquired, MFFO can provide, on a going forward basis, an indication of the sustainability (that is, the capacity to continue to be maintained) of our operating performance after the period in which we are acquiring properties and once our portfolio is in place. By providing MFFO, we believe we are presenting useful information that assists investors and analysts to better assess the sustainability of our operating performance now that our offering has been completed and essentially all of our properties have been acquired. We also believe that MFFO is a recognized measure of sustainable operating performance by the non-listed REIT industry. Further, we believe MFFO is useful in comparing the sustainability of our operating performance since our offering and essentially all of our acquisitions are completed with the sustainability of the operating performance of other real estate companies that are not as involved in acquisition activities. Investors are cautioned that MFFO should only be used to assess the sustainability of a company’s operating performance after a

CPA®:16 – Global 3/31/2013 10-Q — 34

company’s offering has been completed and properties have been acquired, as it excludes acquisition costs that have a negative effect on a company’s operating performance during the periods in which properties are acquired.

We define MFFO consistent with the IPA’s Guideline 2010-01, Supplemental Performance Measure for Publicly Registered, Non-Listed REITs: Modified Funds from Operations, or the Practice Guideline, issued by the IPA in November 2010. The Practice Guideline defines MFFO as FFO further adjusted for the following items, as applicable, included in the determination of GAAP net income: acquisition fees and expenses; amounts relating to deferred rent receivables and amortization of above and below market leases and liabilities (which are adjusted in order to reflect such payments from a GAAP accrual basis to a cash basis of disclosing the rent and lease payments); accretion of discounts and amortization of premiums on debt investments; nonrecurring impairments of real estate-related investments (i.e., infrequent or unusual, not reasonably likely to recur in the ordinary course of business); mark-to-market adjustments included in net income; nonrecurring gains or losses included in net income from the extinguishment or sale of debt, hedges, foreign exchange, derivatives, or securities holdings where trading of such holdings is not a fundamental attribute of the business plan, unrealized gains or losses resulting from consolidation from, or deconsolidation to, equity accounting, and after adjustments for consolidated and unconsolidated partnerships and jointly-owned investments, with such adjustments calculated to reflect MFFO on the same basis. The accretion of discounts and amortization of premiums on debt investments, nonrecurring unrealized gains and losses on hedges, foreign exchange, derivatives or securities holdings, unrealized gains and losses resulting from consolidations, as well as other listed cash flow adjustments are adjustments made to net income in calculating the cash flows provided by operating activities and, in some cases, reflect gains or losses which are unrealized and may not ultimately be realized. While we are responsible for managing interest rate, hedge and foreign exchange risk, we retain an outside consultant to review all our hedging agreements. Inasmuch as interest rate hedges are not a fundamental part of our operations, we believe it is appropriate to exclude such infrequent gains and losses in calculating MFFO, as such gains and losses are not reflective of on-going operations.

In calculating MFFO, we exclude acquisition-related expenses, amortization of above- and below-market leases, fair value adjustments of derivative financial instruments, deferred rent receivables and the adjustments of such items related to noncontrolling interests. Under GAAP, acquisition fees and expenses are characterized as operating expenses in determining operating net income. These expenses are paid in cash by a company. All paid and accrued acquisition fees and expenses will have negative effects on returns to investors, the potential for future distributions, and cash flows generated by the company, unless earnings from operations or net sales proceeds from the disposition of other properties are generated to cover the purchase price of the property, these fees and expenses and other costs related to such property. Further, under GAAP, certain contemplated non-cash fair value and other non-cash adjustments are considered operating non-cash adjustments to net income in determining cash flow from operating activities. In addition, we view fair value adjustments of derivatives and gains and losses from dispositions of assets as infrequent items or items which are unrealized and may not ultimately be realized, and which are not reflective of on-going operations and are therefore typically adjusted for assessing operating performance.

Our management uses MFFO and the adjustments used to calculate it in order to evaluate our performance against other non-listed REITs which have limited lives with short and defined acquisition periods and targeted exit strategies shortly thereafter. As noted above, MFFO may not be a useful measure of the impact of long-term operating performance on value if we do not continue to operate in this manner. We believe that our use of MFFO and the adjustments used to calculate it allow us to present our performance in a manner that reflects certain characteristics that are unique to non-listed REITs, such as their limited life, limited and defined acquisition period and targeted exit strategy, and hence that the use of such measures is useful to investors. For example, acquisition costs were generally funded from the proceeds of our offering and other financing sources and not from operations. By excluding expensed acquisition costs, the use of MFFO provides information consistent with management’s analysis of the operating performance of the properties. Additionally, fair value adjustments, which are based on the impact of current market fluctuations and underlying assessments of general market conditions, but can also result from operational factors such as rental and occupancy rates, may not be directly related or attributable to our current operating performance. By excluding such changes that may reflect anticipated and unrealized gains or losses, we believe MFFO provides useful supplemental information.

Presentation of this information is intended to provide useful information to investors as they compare the operating performance of different REITs, although it should be noted that not all REITs calculate FFO and MFFO the same way, so comparisons with other REITs may not be meaningful. Furthermore, FFO and MFFO are not necessarily indicative of cash flow available to fund cash needs and should not be considered as an alternative to net income or income from continuing operations as an indication of our performance, as an alternative to cash flows from operations as an indication of our liquidity, or indicative of funds available to fund our cash needs including our ability to make distributions to our stockholders. FFO and MFFO should be reviewed in conjunction with other GAAP measurements as an indication of our performance.

Neither the SEC, NAREIT nor any other regulatory body has passed judgment on the acceptability of the adjustments that we use to calculate FFO or MFFO. In the future, the SEC, NAREIT or another regulatory body may decide to standardize the allowable

CPA®:16 – Global 3/31/2013 10-Q — 35

adjustments across the non-listed REIT industry and we would have to adjust our calculation and characterization of FFO or MFFO accordingly.

FFO and MFFO were as follows (in thousands):

	Three Months Ended March 31,
	2013			2012
Net income attributable to CPA®:16 – Global stockholders	$	2,742		$	7,320
Adjustments:
Depreciation and amortization of real property	22,683			26,510
Impairment charges	9,313			495
(Gain) loss on sale of real estate	(2,701		)	2,191
Proportionate share of adjustments to equity in net income of partially owned entities to arrive at FFO:
Depreciation and amortization of real property	3,661			3,454
Gain on sale of real estate	-			(325		)
Proportionate share of adjustments for noncontrolling interests to arrive at FFO	(2,880		)	(3,254		)
Total adjustments	30,076			29,071
FFO — as defined by NAREIT	32,818			36,391
Adjustments:
Loss on extinguishment of debt	-			506
Other depreciation, amortization and non-cash charges	1,528			(999		)
Straight-line and other rent adjustments (a)	1,188			(2,147		)
Acquisition expenses (b)	107			107
Merger expenses (b)	-			93
Amortization of deferred financing costs	320			857
Above- and below-market rent intangiblelease amortization, net (c)	4,174			4,508
Amortization of premiums on debt investments, net	78			628
Realized (gains) losses on foreign currency, derivatives and other (d)	(756		)	84
Unrealized losses on mark-to-market adjustments (e)	238			18
Proportionate share of adjustments to equity in net income of partially owned entities to arrive at MFFO:
Other depreciation, amortization and other non-cash charges	-			30
Straight-line and other rent adjustments (a)	(140		)	113
Gain on extinguishment of debt	(2		)	-
Acquisition expenses (b)	64			64
Above- and below-market rent intangible lease amortization, net (c)	925			925
Realized (gains) losses on foreign currency, derivatives and other (d)	(15		)	25
Proportionate share of adjustments for noncontrolling interests to arrive at MFFO	(110		)	(241		)
Total adjustments	7,599			4,571
MFFO (a) (b)	$	40,417		$	40,962

(a) Under GAAP, rental receipts are allocated to periods using various methodologies. This may result in income recognition that is significantly different from the underlying contract terms. By adjusting for these items (to reflect such payments from a GAAP accrual basis to a cash basis of disclosing the rent and lease payments), management believes that MFFO provides useful supplemental information on the realized economic impact of lease terms and debt investments, provides insight on the contractual cash flows of such lease terms and debt investments, and aligns results with management’s analysis of operating performance.

CPA®:16 – Global 3/31/2013 10-Q — 36

(b)	In evaluating investments in real estate, management differentiates the costs to acquire the investment from the operations derived from the investment. Such information would be comparable only for non-listed REITs that have completed their acquisition activity and have other similar operating characteristics. By excluding expensed acquisition costs, management believes MFFO provides useful supplemental information that is comparable for each type of real estate investment and is consistent with management’s analysis of the investing and operating performance of our properties. Acquisition fees and expenses include payments to our advisor or third parties. Acquisition fees and expenses under GAAP are considered operating expenses and as expenses included in the determination of net income and income from continuing operations, both of which are performance measures under GAAP. All paid and accrued acquisition fees and expenses will have negative effects on returns to stockholders, the potential for future distributions, and cash flows generated by us, unless earnings from operations or net sales proceeds from the disposition of properties are generated to cover the purchase price of the property, these fees and expenses and other costs related to the property.
(c)	Under GAAP, certain intangibles are accounted for at cost and reviewed at least annually for impairment, and certain intangibles are assumed to diminish predictably in value over time and amortized, similar to depreciation and amortization of other real estate related assets that are excluded from FFO. However, because real estate values and market lease rates historically rise or fall with market conditions, management believes that by excluding charges relating to amortization of these intangibles, MFFO provides useful supplemental information on the performance of the real estate.
(d)	Management believes that adjusting for fair value adjustments for derivatives provides useful information because such fair value adjustments are based on market fluctuations and may not be directly related or attributable to our operations.
(e)	Management believes that adjusting for mark-to-market adjustments is appropriate because they are items that may not be reflective of on-going operations and reflect unrealized impacts on value based only on then current market conditions, although they may be based upon current operational issues related to an individual property or industry or general market conditions. The need to reflect mark-to-market adjustments is a continuous process and is analyzed on a quarterly and/or annual basis in accordance with GAAP.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Market Risk

Market risk is the exposure to loss resulting from changes in interest rates, foreign currency exchange rates, and equity prices. The primary risks to which we are exposed are interest rate risk and foreign currency exchange risk. We are also exposed to further market risk as a result of concentrations of tenants in certain industries and/or geographic regions. Adverse market factors can affect the ability of tenants in a particular industry/region to meet their respective lease obligations. In order to manage this risk, we view our collective tenant roster as a portfolio, and in its investment decisions the advisor attempts to diversify our portfolio so that we are not overexposed to a particular industry or geographic region.

Generally, we do not use derivative instruments to hedge credit/market risks or for speculative purposes. However, from time to time, we may enter into foreign currency derivative contracts to hedge our foreign currency cash flow exposures.

Interest Rate Risk

The value of our real estate and related fixed-rate debt obligations is subject to fluctuations based on changes in interest rates. The value of our real estate is also subject to fluctuations based on local and regional economic conditions and changes in the creditworthiness of lessees, all of which may affect our ability to refinance property-level mortgage debt when balloon payments are scheduled. Interest rates are highly sensitive to many factors, including governmental monetary and tax policies, domestic and international economic and political conditions, and other factors beyond our control. An increase in interest rates would likely cause the fair value of our owned assets to decrease. Increases in interest rates may also have an impact on the credit profile of certain tenants.

We are exposed to the impact of interest rate changes primarily through our borrowing activities. To limit this exposure, we attempt to obtain non-recourse mortgage financing on a long-term, fixed-rate basis. However, from time to time, we or our investment partners may obtain variable-rate non-recourse mortgage loans and, as a result, may enter into interest rate swap agreements or interest rate cap agreements with lenders that effectively convert the variable-rate debt service obligations of the loan to a fixed rate or limit the underlying interest rate from exceeding a specified strike rate, respectively. Interest rate swaps are agreements in which one party exchanges a stream of interest payments for a counterparty’s stream of cash flows over a specific period, and interest rate caps limit the effective borrowing rate of variable-rate debt obligations while allowing participants to share in downward shifts in interest rates. These interest rate swaps and caps are derivative instruments designated as cash flow hedges on the forecasted interest payments on

CPA®:16 – Global 3/31/2013 10-Q — 37

the debt obligation. The notional, or face, amount on which the swaps or caps are based is not exchanged. Our objective in using these derivatives is to limit our exposure to interest rate movements.

The net fair value of our interest rate swaps and cap, which are included in Accounts payable, accrued expenses, and other liabilities and Other assets, net, respectively, in the consolidated financial statements, was in a net liability position of $5.0 million at March 31, 2013. In addition, three unconsolidated investments in which we have interests ranging from 25% to 35% had interest rate swaps and an interest rate cap with a net estimated fair value liability of $14.6 million in the aggregate, representing the total amount attributable to the entities, not our proportionate share, at March 31, 2013 (Note 9).

At March 31, 2013, the majority (approximately 93%) of our long-term debt either bore interest at fixed rates, was swapped or capped to a fixed rate, or bore interest at fixed rates that were scheduled to convert to then-prevailing market fixed rates at certain future points during their term. The annual interest rates on our fixed-rate debt at March 31, 2013 ranged from 4.3% to 7.8%. The effective annual interest rates on our variable-rate debt at March 31, 2013 ranged from 1.2% to 6.9%. Our debt obligations are more fully described under Financial Condition in Item 2 above. The following table presents principal cash flows based upon expected maturity dates of our debt obligations outstanding at March 31, 2013 (in thousands):

	2013 (Remainder)		2014		2015		2016		2017		Thereafter		Total		Fair value
Fixed-rate debt	$	27,554	$	92,207	$	133,038	$	234,514	$	563,625	$	411,499	$	1,462,437	$	1,469,299
Variable-rate debt	$	6,012	$	8,338	$	120,599	$	9,049	$	60,103	$	59,392	$	263,493	$	262,184

The estimated fair value of our fixed-rate debt and our variable-rate debt that currently bears interest at fixed rates or has effectively been converted to a fixed rate through the use of interest rate swaps or has been subject to an interest rate cap is affected by changes in interest rates. A decrease or increase in interest rates of 1% would change the estimated fair value of this debt at March 31, 2013 by an aggregate increase of $65.2 million or an aggregate decrease of $66.0 million, respectively. This debt is generally not subject to short-term fluctuations in interest rates.

Foreign Currency Exchange Rate Risk

We own investments outside the U.S., and as a result are subject to risk from the effects of exchange rate movements in various foreign currencies, primarily the euro, and to a lesser extent, certain other currencies, which may affect future costs and cash flows. We manage foreign currency exchange rate movements by generally placing both our debt obligation to the lender and the tenant’s rental obligation to us in the same currency. This reduces our overall exposure to the net cash flow from that investment. However, we are subject to foreign currency exchange rate movements to the extent of the difference in the timing and amount of the rental obligation and the debt service. We are generally a net receiver of these currencies (we receive more cash than we pay out), and therefore our foreign operations benefit from a weaker U.S. dollar, and are adversely affected by a stronger U.S. dollar, relative to the foreign currency.

We have obtained mortgage financing in the local currency. To the extent that currency fluctuations increase or decrease rental revenues as translated to U.S. dollars, the change in debt service, as translated to U.S. dollars, will partially offset the effect of fluctuations in revenue and mitigate the risk from changes in foreign currency exchange rates.

Scheduled future minimum rents, exclusive of renewals, under non-cancelable operating leases for our foreign operations during the remainder of 2013, each of the next four calendar years following December 31, 2013, and thereafter are as follows (in thousands):

Lease Revenues(a)	2013 (Remainder)		2014		2015		2016		2017		Thereafter		Total
Euro (b)	$	65,958	$	80,163	$	73,233	$	73,150	$	73,146	$	685,617	$	1,051,267
British pound sterling (c)	4,008		5,420		4,867		4,629		4,688		61,474		85,086
Other foreign currencies (d)	6,318		8,418		8,416		8,419		8,431		47,932		87,934
	$	76,284	$	94,001	$	86,516	$	86,198	$	86,265	$	795,023	$	1,224,287

CPA®:16 – Global 3/31/2013 10-Q — 38

Scheduled debt service payments (principal and interest), for mortgage notes payable for our foreign operations during the remainder of 2013, each of the next four calendar years following December 31, 2013, and thereafter are as follows (in thousands):

Debt Service(a) (e)	2013 (Remainder)		2014		2015		2016		2017		Thereafter		Total
Euro (b)	$	34,963	$	70,141	$	49,966	$	136,908	$	409,147	$	12,911	$	714,036
British pound sterling (c)	2,425		15,531		7,368		1,399		1,400		21,754		49,877
Other foreign currencies (d)	3,591		12,961		9,361		3,502		9,120		16,919		55,454
	$	40,979	$	98,633	$	66,695	$	141,809	$	419,667	$	51,584	$	819,367

(a)	Amounts are based on the applicable exchange rates at March 31, 2013. Contractual rents and debt obligations are denominated in the functional currency of the country of each property.
(b)	We estimate that a 1% increase or decrease in the exchange rate between the euro and the U.S. dollar would change projected property level cash flow at March 31, 2013 by $3.4 million.
(c)	We estimate that a 1% increase or decrease in the exchange rate between the British pound sterling and the U.S. dollar would change projected property level cash flow at March 31, 2013 by $0.4 million.
(d)	Other foreign currencies consist of the Canadian dollar, the Malaysian ringgit, the Swedish krona, and the Thai baht.
(e)	Interest on unhedged variable-rate debt obligations was calculated using the applicable annual interest rates and balances outstanding at March 31, 2013.

As a result of scheduled balloon payments on non-recourse mortgage loans, projected debt service obligations exceed projected lease revenues in 2014, 2016, and 2017. In 2014, 2016, and 2017, balloon payments totaling $44.8 million, $95.1 million, and $404.4 million, respectively, are due on several non-recourse mortgage loans. We currently anticipate that, by their respective due dates, we will have refinanced certain of these loans, but there can be no assurance that we will be able to do so on favorable terms, if at all. If that has not occurred, we would expect to use our cash resources to make these payments, if necessary.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

Our disclosure controls and procedures include our controls and other procedures designed to provide reasonable assurance that information required to be disclosed in this and other reports filed under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) is recorded, processed, summarized, and reported within the required time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to management, including our chief executive officer and chief financial officer, to allow timely decisions regarding required disclosures. It should be noted that no system of controls can provide complete assurance of achieving a company’s objectives and that future events may impact the effectiveness of a system of controls.

Our chief executive officer and chief financial officer, after conducting an evaluation, together with members of our management, of the effectiveness of the design and operation of our disclosure controls and procedures at March 31, 2013, have concluded that our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) were effective as of March 31, 2013 at a reasonable level of assurance.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

CPA®:16 – Global 3/31/2013 10-Q — 39

PART II

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

Unregistered Sales of Equity Securities

For the three months ended March 31, 2013, we issued 429,833 shares of common stock to the advisor as consideration for asset management fees. Of these shares, 345,238 were issued at $8.70 per share and 84,595 were issued at $9.10 per share, with each price per share representing our most recently published NAV per share as approved by our board of directors at the date of issuance.

Since none of these transactions were considered to have involved a “public offering” within the meaning of Section 4(a)(2) of the Securities Act, the shares issued were deemed to be exempt from registration. In acquiring our shares, the advisor represented that such interests were being acquired by it for the purposes of investment and not with a view to the distribution thereof.

Issuer Purchases of Equity Securities

The following table provides information with respect to repurchases of our common stock during the three months ended March 31, 2013:

					Maximum number (or
				Total number of shares	approximate dollar value)
				purchased as part of	of shares that may yet be
	Total number of	Average price		publicly announced	purchased under the
2013 Period	shares purchased (a)	paid per share		plans or program (a)	plans or program (a)
January	—	—		N/A	N/A
February	—	—		N/A	N/A
March	584,710	$	8.47	N/A	N/A
Total	584,710

(a) Represents shares of our common stock repurchased through our redemption plan, pursuant to which we may elect to redeem shares at the request of our stockholders, subject to certain exceptions, conditions, and limitations. The maximum amount of shares purchasable by us in any period depends on a number of factors and is at the discretion of our board of directors. We satisfied all redemption requests received during the three months ended March 31, 2013. The redemption plan will terminate if and when our shares are listed on a national securities market. We receive fees in connection with share redemptions.

CPA®:16 – Global 3/31/2013 10-Q — 40

Item 6. Exhibits

The following exhibits are filed with this Report, except where indicated.

Exhibit No.	Description
31.1	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32	Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	The following materials from Corporate Property Associates 16 – Global Incorporated’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2013, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets at March 31, 2013 and December 31, 2012, (ii) Consolidated Statements of Income for the three months ended March 31, 2013 and 2012, (iii) Consolidated Statements of Comprehensive (Loss) Income for the three months ended March 31, 2013 and 2012, (iv) Consolidated Statements of Cash Flows for the three months ended March 31, 2013 and 2012, and (v) Notes to Consolidated Financial Statements. *

* Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

CPA®:16 – Global 3/31/2013 10-Q — 41

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.

		Corporate Property Associates 16 – Global Incorporated
Date: May 6, 2013
	By:	/s/ Catherine D. Rice
		Catherine D. Rice
		Chief Financial Officer
		(Principal Financial Officer)
Date: May 6, 2013
	By:	/s/ Hisham A. Kader
		Hisham A. Kader
		Chief Accounting Officer
		(Principal Accounting Officer)

CPA®:16 – Global 3/31/2013 10-Q — 42

EXHIBIT INDEX

The following exhibits are filed with this Report, except where indicated.

Exhibit No.	Description
31.1	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32	Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	The following materials from Corporate Property Associates 16 – Global Incorporated’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2013, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets at March 31, 2013 and December 31, 2012, (ii) Consolidated Statements of Income for the three months ended March 31, 2013 and 2012, (iii) Consolidated Statements of Comprehensive (Loss) Income for the three months ended March 31, 2013 and 2012, (iv) Consolidated Statements of Cash Flows for the three months ended March 31, 2013 and 2012, and (v) Notes to Consolidated Financial Statements. *

* Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

EX-31.1

Exhibit 31.1

Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Trevor P. Bond, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Corporate Property Associates 16 – Global Incorporated;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an Annual Report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 6, 2013

/s/ Trevor P. Bond

Trevor P. Bond

Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Catherine D. Rice, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Corporate Property Associates 16 – Global Incorporated;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an Annual Report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 6, 2013

/s/ Catherine D. Rice

Catherine D. Rice

Chief Financial Officer

EX-32

Exhibit 32

Certifications Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Corporate Property Associates 16 – Global Incorporated on Form 10-Q for the period ended March 31, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of Corporate Property Associates 16 – Global Incorporated, does hereby certify, to the best of such officer’s knowledge and belief, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Corporate Property Associates 16 – Global Incorporated.

Date: May 6, 2013

/s/ Trevor P. Bond

Trevor P. Bond

Chief Executive Officer

Date: May 6, 2013

/s/ Catherine D. Rice

Catherine D. Rice

Chief Financial Officer

The certification set forth above is being furnished as an exhibit solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and is not being filed as part of the Report as a separate disclosure document of Corporate Property Associates 16 – Global Incorporated or the certifying officers.

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Corporate Property Associates 16 – Global Incorporated and will be retained by Corporate Property Associates 16 – Global Incorporated and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Net Investments in Properties (Details 1) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Real Estate Investment Property, at Cost
Less: Accumlated depreciation	$ (269,279)	$ (258,655)
Net investments in real estate	2,011,451	2,070,380
Real Estate
Real Estate Investment Property, at Cost
Land	457,694	470,809
Buildings	1,737,390	1,772,661
Less: Accumlated depreciation	(252,461)	(242,648)
Net investments in real estate	1,942,623	2,000,822
Operating Real Estate
Real Estate Investment Property, at Cost
Land	8,296	8,296
Buildings	68,533	68,505
Furniture, fixtures, and equipment	8,817	8,764
Less: Accumlated depreciation	(16,818)	(16,007)
Net investments in real estate	$ 68,828	$ 69,558

XML

Risk Management and Use of Derivative Financial Instruments (Details 4) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013 3-Month Euribor Pay-fixed swap USD ($)	Mar. 31, 2013 3-Month Euribor Pay-fixed swap EUR (€)	Mar. 31, 2013 3-Month Euribor Interest rate cap USD ($)	Mar. 31, 2013 3-Month Euribor Interest rate cap EUR (€)	Mar. 31, 2013 1-Month LIBOR One Pay-fixed swap USD ($)	Mar. 31, 2013 1-Month LIBOR Two Pay-fixed swap USD ($)	Mar. 31, 2013 1-Month LIBOR Three Pay-fixed swap USD ($)	Mar. 31, 2013 1-Month LIBOR Four Pay-fixed swap USD ($)	Mar. 31, 2013 1-Month LIBOR Five Pay-fixed swap USD ($)	Mar. 31, 2013 1-Month LIBOR Six Pay-fixed swap USD ($)	Mar. 31, 2013 1-Month LIBOR Seven Pay-fixed swap USD ($)	Mar. 31, 2013 1-Month LIBOR Eight Pay-fixed swap USD ($)	Mar. 31, 2013 1-Month LIBOR Nine Pay-fixed swap USD ($)	Mar. 31, 2013 1-Month LIBOR Ten Pay-fixed swap USD ($)	Mar. 31, 2013 1-Month LIBOR Eleven Pay-fixed swap USD ($)
Derivative Instrument Detail
Notional Amount		€ 15,970		€ 53,083	$ 3,626	$ 11,179	$ 5,947	$ 3,803	$ 5,664	$ 5,846	$ 8,710	$ 1,942	$ 9,800	$ 9,887	$ 3,993
Cap Rate			3.00%	3.00%
Effective Interest Rate	0.90%	0.90%			6.70%	5.60%	6.40%	6.90%	5.40%	4.90%	5.10%	4.60%	3.30%	1.60%	4.90%
Effective Date	Apr. 01, 2012	Apr. 01, 2012	Apr. 01, 2012	Apr. 01, 2012	Feb. 01, 2008	Mar. 01, 2008	Jul. 01, 2008	Mar. 01, 2011	Nov. 01, 2011	Dec. 01, 2011	Mar. 01, 2012	May 01, 2012	Jun. 01, 2012	Sep. 01, 2012	Feb. 14, 2013
Expiration Date	Jul. 01, 2013	Jul. 01, 2013	Apr. 01, 2017	Apr. 01, 2017	Feb. 01, 2018	Mar. 01, 2018	Jul. 01, 2018	Mar. 01, 2021	Dec. 01, 2020	Dec. 01, 2021	Nov. 01, 2019	Nov. 01, 2017	Jun. 01, 2017	Oct. 01, 2020	Feb. 15, 2023
Fair Value	$ (44)		$ 48		$ (583)	$ (1,586)	$ (999)	$ (557)	$ (250)	$ (242)	$ (426)	$ (48)	$ (150)	$ (108)	$ (129)

XML

Fair Value Measurements (Details 1) (Level 3, USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Liabilities
Non-recourse and limited-recourse debt	$ 1,631,483	$ 1,656,684
Line of credit	100,000	143,000
Assets
Notes receivable	43,572	44,363
Carrying Value
Liabilities
Non-recourse and limited-recourse debt	1,621,252	1,644,180
Line of credit	100,000	143,000
Assets
Notes receivable	$ 42,681	$ 43,394

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Risk Management and Use of Derivative Financial Instruments (Details 5) In Thousands, unless otherwise specified			3 Months Ended
	Mar. 31, 2013 Pay-fixed swap 3-Month LIBOR USD ($)	Mar. 31, 2013 Pay-fixed swap 3-Month LIBOR EUR (€)	Mar. 31, 2013 Pay-fixed swap 3-Month LIBOR Minimum	Mar. 31, 2013 Pay-fixed swap 3-Month LIBOR Maximum	Mar. 31, 2013 Pay-fixed swap 3-Month Euribor USD ($)	Mar. 31, 2013 Pay-fixed swap 3-Month Euribor EUR (€)	Mar. 31, 2013 Interest rate cap 3-Month LIBOR USD ($)	Mar. 31, 2013 Interest rate cap 3-Month Euribor USD ($)	Mar. 31, 2013 Interest rate cap 3-Month Euribor EUR (€)
Derivative Instrument Detail
Ownership Interest	25.00%	25.00%			35.00%	35.00%	27.30%
Notional Amount		€ 111,838				€ 15,970	$ 118,374		€ 53,083
Cap Rate							4.00%	3.00%	3.00%
Effective Interest Rate			5.00%	5.60%	0.90%	0.90%
Spread							1.20%
Effective Date			Jul. 01, 2006	Apr. 01, 2008	Apr. 01, 2012	Apr. 01, 2012	Aug. 01, 2009	Apr. 01, 2012	Apr. 01, 2012
Expiration Date			Oct. 01, 2015	Jul. 01, 2016	Jul. 01, 2013	Jul. 01, 2013	Aug. 01, 2014	Apr. 01, 2017	Apr. 01, 2017
Fair Value	$ (14,512)				$ (44)		$ 0	$ 48

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Intangible Assets and Liabilities (Details 1) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Amortizable Intangible Assets
Finite-Lived Intangible Assets, Gross	$ 588,043	$ 600,708
Finite-Lived Intangible Assets, Accumulated Amortization	(169,014)	(157,616)
Amortizable intangible assets	419,029	443,092
Amortizable Intangible Liability
Finite-Lived Intangible Liabilities, Gross	(64,596)	(65,148)
Finite Lived Intangible Liabilities Accumulated Amortization	13,682	13,001
Finite Lived Intangible Liabilities Net	(50,914)	(52,147)
Management contract
Amortizable Intangible Assets
Finite-Lived Intangible Assets, Gross	874	874
Finite-Lived Intangible Assets, Accumulated Amortization	(676)	(645)
Amortizable intangible assets	198	229
Franchise agreements
Amortizable Intangible Assets
Finite-Lived Intangible Assets, Gross	2,240	2,240
Finite-Lived Intangible Assets, Accumulated Amortization	(1,214)	(1,157)
Amortizable intangible assets	1,026	1,083
In-place lease
Amortizable Intangible Assets
Finite-Lived Intangible Assets, Gross	352,247	361,242
Finite-Lived Intangible Assets, Accumulated Amortization	(108,102)	(101,122)
Amortizable intangible assets	244,145	260,120
Tenant relationship
Amortizable Intangible Assets
Finite-Lived Intangible Assets, Gross	32,674	33,615
Finite-Lived Intangible Assets, Accumulated Amortization	(7,765)	(7,544)
Amortizable intangible assets	24,909	26,071
Above-market lease
Amortizable Intangible Assets
Finite-Lived Intangible Assets, Gross	193,270	195,985
Finite-Lived Intangible Assets, Accumulated Amortization	(50,780)	(46,688)
Amortizable intangible assets	142,490	149,297
Below-market ground lease
Amortizable Intangible Assets
Finite-Lived Intangible Assets, Gross	6,738	6,752
Finite-Lived Intangible Assets, Accumulated Amortization	(477)	(460)
Amortizable intangible assets	6,261	6,292
Below-market rent
Amortizable Intangible Liability
Finite-Lived Intangible Liabilities, Gross	(64,596)	(65,148)
Finite Lived Intangible Liabilities Accumulated Amortization	13,682	13,001
Finite Lived Intangible Liabilities Net	$ (50,914)	$ (52,147)

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Discontinued Operations (Tables)

3 Months Ended

Mar. 31, 2013

Discontinued Operations

Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block]

		Three Months Ended March 31,
		2013		2012
Revenues		$	537	$	2,114
Expenses			(318)		(4,113)
Gain (loss) on sale of real estate			2,701		(2,191)
Impairment charges			-		(485)
	Income (loss) from discontinued operations	$	2,920	$	(4,675)

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Debt (Narratives 1) (Details) (USD $)	3 Months Ended	12 Months Ended		3 Months Ended				3 Months Ended
	Mar. 31, 2013	Dec. 31, 2012	Jan. 31, 2013	Mar. 31, 2013 Fixed interest rate loans	Mar. 31, 2013 Variable interest rate loans	Mar. 31, 2013 Variable interest rate loan swapped	Dec. 31, 2013 Refinancing of debt	Mar. 31, 2013 Other nonrecourse loans	Mar. 31, 2013 Credit Agreement
Debt Instruments
Carrying value of collateral mortgage loans	$ 2,400,000,000	$ 2,400,000,000
Mortgage loans on real estate, minimum interest range				4.30%	1.20%
Mortgage loans on real estate, maximum interest rate				7.80%	6.90%
Non recourse debt			31,300,000			4,000,000	0	13,000,000
Long-term, weighted average interest rate								4.50%
Debt instrument term								13 years
Debt instrument maturity date, start	Jan. 01, 2014
Debt instrument maturity date, end	Jan. 01, 2031
Debt scheduled to mature in 2015	253,637,000								100,000,000
Troubled debt, refinanced		10,000,000
Debt payoff amount		8,700,000
Contingent obligation threshold		6,000,000
Debt instrument default, amount	16,700,000
Unamortized discount acquired - Nordic instrument	1,300,000
Unamortized discount acquired	6,000,000
Exchange rate impact on outstanding debt	$ (20,600,000)

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Net Investments in Properties (Tables)

3 Months Ended

Mar. 31, 2013

Net Investments in Properties

Net Investments in Real Estate Properties

	March 31, 2013		December 31, 2012
Land	$	457,694	$	470,809
Buildings		1,737,390		1,772,661
Less: Accumulated depreciation		(252,461)		(242,648)
	$	1,942,623	$	2,000,822

	March 31, 2013		December 31, 2012
Land	$	8,296	$	8,296
Buildings		68,533		68,505
Furniture, fixtures, and equipment		8,817		8,764
Less: Accumulated depreciation		(16,818)		(16,007)
	$	68,828	$	69,558

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Risk Management and Use of Derivative Financial Instruments (Narratives) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
Summary of Derivative Instruments
Aggregate derivative net liability position	$ 5.3		$ 7.9
Maximum potential future exposure single counterparty on credit risk derivatives	0.1
Loss on contract termination due to defaults	5.8		8.5
Credit exposure	0.2
Footnote Details
Derivative instruments ineffective portions reclassification from accumulated OCI to income	0.1	0.1
Foreign currency derivative contract
Summary of Derivative Instruments
Amount of gain (loss) reclassified from OCI into income (effective portion)	0.1
Interest rate swaps and caps
Summary of Derivative Instruments
Amount of gain (loss) reclassified from OCI into income (effective portion)	$ 1.4

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Finance Receivables (Details 1) (USD $)	Mar. 31, 2013 tenant	Dec. 31, 2012	Mar. 31, 2012
Credit Quality Of Finanace Receivables:
Number of tenants	140
Net investments in direct financing leases	$ 459,706,000	$ 467,831,000
Notes receivable	42,681,000	43,394,000
Financing receivable, allowance for credit losses	300,000		200,000
Internally Assigned Grade 1
Credit Quality Of Finanace Receivables:
Number of tenants	1	1
Number of obligors	0	0
Net investments in direct financing leases	43,124,000	43,213,000
Notes receivable	0	0
Internally Assigned Grade 2
Credit Quality Of Finanace Receivables:
Number of tenants	1	2
Number of obligors	1	1
Net investments in direct financing leases	26,893,000	35,197,000
Notes receivable	9,847,000	9,836,000
Internally Assigned Grade 3
Credit Quality Of Finanace Receivables:
Number of tenants	12	13
Number of obligors	2	2
Net investments in direct financing leases	200,083,000	230,527,000
Notes receivable	32,834,000	33,558,000
Internally Assigned Grade 4
Credit Quality Of Finanace Receivables:
Number of tenants	9	7
Number of obligors	0	0
Net investments in direct financing leases	183,576,000	152,902,000
Notes receivable	0	0
Internally Assigned Grade 5
Credit Quality Of Finanace Receivables:
Number of tenants	1	1
Number of obligors	0	0
Net investments in direct financing leases	6,030,000	5,992,000
Notes receivable	$ 0	$ 0

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Agreements and Transactions with Related Parties (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Amounts included in operating expenses:
Asset management fees	$ 4,498	$ 4,701
Available Cash Distribution	3,614	4,281
Personnel reimbursements	3,376	1,626
Office rent reimbursements	380	311
Total amounts included in operating expenses	11,868	10,919
Transaction fees incurred
Mortgage refinancing fees	313	0
Total transaction fees incurred	313	0
Unpaid transaction fees:
Deferred acquistion fees	1,212	1,757
Subordinated disposition fees	1,197	1,197
Unpaid transaction fees	$ 2,409	$ 2,954

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Risk Management and Use of Derivative Financial Instruments (Details 2) (Cash Flow Hedging, USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net
Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion)	$ 2,680	$ (987)
Interest rate swaps
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net
Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion)	226	48
Interest rate cap
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net
Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion)	14	(467)
Foreign currency contracts
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net
Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion)	$ 2,440	$ (568)

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Equity (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Stockholders Equity Including Portion Attributable To Noncontrolling Interest
Balance - beginning of period	$ 1,423,360	$ 1,501,283
Shares issued	12,549	13,250
Contributions	180	2,754
Net income	7,393	11,093
Distributions	(37,973)	(36,790)
Available Cash Distribution	(3,614)	(4,281)
Change in other comprehensive income	(6,186)	8,367
(Purchase) reissuance of treasury stock	(4,952)	117
Balance - end of period	1,390,757	1,495,793
CPA 16 - Global Stockholders
Stockholders Equity Including Portion Attributable To Noncontrolling Interest
Balance - beginning of period	1,327,880	1,424,057
Shares issued	12,549	13,250
Net income	2,742	7,320
Distributions	(34,149)	(33,720)
Change in other comprehensive income	(5,215)	7,191
(Purchase) reissuance of treasury stock	(4,952)	(117)
Balance - end of period	1,298,855	1,418,215
Noncontrolling Interest
Stockholders Equity Including Portion Attributable To Noncontrolling Interest
Balance - beginning of period	95,480	77,226
Contributions	180	2,754
Net income	4,651	3,773
Distributions	(3,824)	(3,070)
Available Cash Distribution	(3,614)	(4,281)
Change in other comprehensive income	(971)	1,176
Balance - end of period	$ 91,902	$ 77,578

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Intangible Assets and Liabilities (Details 2) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013
Finite-Lived Intangible Assets, Future Amortization Expense
2013 ( remainder)	$ 43,702
2014	54,116
2015	47,499
2016	40,320
2017	37,223
Thereafter	145,255
Amortizable intangible assets and liabilities	$ 368,115

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Basis of Presentation

3 Months Ended

Mar. 31, 2013

Basis of Presentation

Basis of Presentation

Note2.Basis of Presentation

Our interim consolidated financial statements have been prepared, without audit, in accordance with the instructions to Form 10-Q and, therefore, do not necessarily include all information and footnotes necessary for a fair statement of our consolidated financial position, results of operations, and cash flows in accordance with accounting principles generally accepted in the U.S. (“GAAP”).

In the opinion of management, the unaudited financial information for the interim periods presented in this Report reflects all normal and recurring adjustments necessary for a fair statement of results of operations, financial position, and cash flows. Our interim consolidated financial statements should be read in conjunction with our audited consolidated financial statements and accompanying notes for the year ended December 31, 2012, which are included in the 2012 Annual Report, as certain disclosures that would substantially duplicate those contained in the audited consolidated financial statements have not been included in this Report. Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in our consolidated financial statements and the accompanying notes.

Actual results could differ from those estimates. The unaudited consolidated financial statements included in this Report have been retrospectively adjusted to reflect the disposition (or planned disposition) of certain properties as discontinued operationsfor all periods presented.

Basis of Consolidation

The consolidated financial statements reflect all of our accounts, including those of our majority-owned and/or controlled subsidiaries and our tenancy-in-common interests, as described below. The portion of equity in a consolidated subsidiary that is not attributable, directly or indirectly, to us is presented as noncontrolling interests. All significant intercompany accounts and transactions have been eliminated.

We have investments in tenancy-in-common interests in various domestic and international properties. Consolidation of these investments is not required as such interests do not qualify as VIEs and do not meet the control requirement required for consolidation. Accordingly, we account for these investments using the equity method of accounting. We use the equity method of accounting because the shared decision-making involved in a tenancy-in-common interest investment provides us with significant influence on the operating and financial decisions of these investments.

Additionally, we own interests in single-tenant net leased properties leased to companies through noncontrolling interests in partnerships and limited liability companies that we do not control but over which we exercise significant influence. We account for these investments under the equity method of accounting. At times, the carrying value of our equity investments may fall below zero for certain investments. We intend to fund our share of the jointly-owned investments' future operating deficits should the need arise. However, we have no legal obligation to pay for any of the liabilities of such investments nor do we have any legal obligation to fund operating deficits.

We apply accounting guidance for consolidation of VIEs to certain entities in which the equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. Fixed price purchase and renewal options within a lease as well as certain decision-making rights within a loan can cause us to consider an entity a VIE.

Information about International Geographic Areas

At the end of the reporting period, our international investments were comprised of investments in Europe (primarily Germany), Canada, Mexico, Malaysia, and Thailand. Foreign currency exposure and risk management are discussed in Note9.The following tables present information about these investments (in thousands):

	Three Months Ended March 31,
	2013		2012
Revenues	$	25,886	$	28,879
Income from continuing operations before income taxes		4,398		7,375
Net (loss) income		(1,524)		4,934
	March 31, 2013		December 31, 2012
Net investments in real estate	$	947,335	$	979,503

New Accounting Requirements

The following Accounting Standards Updates (“ASUs”) promulgated by Financial Accounting Standards Board (“FASB”) are applicable to us as indicated:

ASU 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities — In January 2013, the FASB issued an update to ASU 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. ASU 2013-01 clarifies that the scope of ASU 2011-11 applies to derivatives accounted for in accordance with Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with Sections 210-20-45 or Section 815-10-45 or subject to an enforceable master netting or similar arrangement. These amendments did not have a significant impact on our financial position or results of operations and are applicable to us for our interim and annual reports beginning in 2013 and shall be applied retrospectively.

ASU 2013-02, Other Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income — In February 2013, the FASB issued ASU 2013-02 requiring entities to disclose additional information about items reclassified out of accumulated other comprehensive income. This ASU impacts the form of our disclosures only, is applicable to us for our interim and annual reports beginning in 2013. The related additional disclosures are located in Note 12.

ASU 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date, a consensus of the FASB Emerging Issues Task Force — In February 2013, the FASB issued ASU 2013-04, which requires entities to measure obligations resulting from joint and several liability arrangements (in our case, tenancy-in-common arrangements) for which the total amount of the obligation is fixed as the sum of the amount the entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. This ASU is applicable to us for our interim and annual reports beginning in 2014, shall be applied retrospectively, and is not expected to have a significant impact on our financial position or results of operations for any of the periods presented.

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Equity (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Redeemable Noncontrolling Interest, Equity, Carrying Amount
Balance - beginning of period	$ 21,747	$ 21,306
Net income	(1,845)
Contributions	2,300
Distributions	(465)
Foreign currency translation adjustments	(643)	640
Balance - end of period	$ 21,094	$ 21,946

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Equity Investments in Real Estate (Narratives) (Details) (USD $)	1 Months Ended	3 Months Ended
	Jan. 31, 2013	Mar. 31, 2013	Mar. 31, 2012
Additional Details [Abstract]
Net income from equity investments in real estate		$ 5,525,000	$ 7,544,000
Footnote Details
Gain (loss) on sale of real estate		2,701,000	(2,191,000)
Proceeds from sale of real estate held-for-investment		27,942,000	11,753,000
Repayment of mortgage loan	32,400,000
Non recourse debt	31,300,000
Aggregate debt due for encumbered property		46,500,000
True Value Company
Footnote Details
Distributions received from equity investments		3,200,000	1,100,000
Repayment of mortgage loan	64,800,000
Non recourse debt	62,500,000
The New York Times Company
Footnote Details
Distributions received from equity investments		1,200,000	1,000,000
U Haul Moving Partners Inc And Mercury Partners LP
Footnote Details
Distributions received from equity investments		1,300,000	1,400,000
Advanced Micro Devices Inc
Footnote Details
Distributions received from equity investments		1,300,000	1,300,000
Del Monte Corporation
Footnote Details
Aggregate debt due for encumbered property		$ 76,600,000

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2013

Fair Value Disclosures

Schedule Of Other Financial Instruments In Carrying Values And Fair Values

			March 31, 2013				December 31, 2012
		Level	Carrying Value		Fair Value		Carrying Value		Fair Value
Non-recourse debt	(a)	3	$	1,621,252	$	1,631,483	$	1,644,180	$	1,656,684
Line of credit		3		100,000		100,000		143,000		143,000
Notes receivable	(a)	3		42,681		43,572		43,394		44,363

Schedule Of Fair Value Impairment Charges Using Unobservable Inputs Nonrecurring Basis

	Three Months Ended March 31, 2013					Three Months Ended March 31, 2012
	Total Fair Value			Total Impairment		Total Fair Value		Total Impairment
	Measurements		(a)	Charges		Measurements		Charges
Net investments in properties	$	8,730		$	9,313	$	-	$	-
Net investments in direct financing leases		-			-		-		10
Total impairment charges included in expenses		8,730			9,313		-		10
Total impairment charges included in income from continuing operations		8,730			9,313		-		10
Impairment charges included in discontinued operations		-			-		4,200		485
Total impairment charges	$	8,730		$	9,313	$	4,200	$	495

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Intangible Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2013

Intangible Assets and Liabilities [Abstract]

Intangible Assets and Liabilities

	March 31, 2013						December 31, 2012
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Amortizable Intangible Assets
Management contract	$	874	$	(676)	$	198	$	874	$	(645)	$	229
Franchise agreement		2,240		(1,214)		1,026		2,240		(1,157)		1,083
		3,114		(1,890)		1,224		3,114		(1,802)		1,312
Lease intangibles:
In-place lease		352,247		(108,102)		244,145		361,242		(101,122)		260,120
Tenant relationship		32,674		(7,765)		24,909		33,615		(7,544)		26,071
Above-market rent		193,270		(50,780)		142,490		195,985		(46,688)		149,297
Below-market ground lease		6,738		(477)		6,261		6,752		(460)		6,292
		584,929		(167,124)		417,805		597,594		(155,814)		441,780
Total intangible assets	$	588,043	$	(169,014)	$	419,029	$	600,708	$	(157,616)	$	443,092
Amortizable Below-Market Rent Intangible Liabilities
Below-market rent	$	(64,596)	$	13,682	$	(50,914)	$	(65,148)	$	13,001	$	(52,147)
Total intangible liabilities	$	(64,596)	$	13,682	$	(50,914)	$	(65,148)	$	13,001	$	(52,147)

Scheduled Net Annual Amortization of Intangibles

Years Ending December 31,	Total
2013 (remainder)	$	43,702
2014		54,116
2015		47,499
2016		40,320
2017		37,223
Thereafter		145,255
	$	368,115

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Risk Management and Use of Derivative Financial Instruments (Details 6) In Thousands, unless otherwise specified			3 Months Ended							3 Months Ended
	Mar. 31, 2013 USD ($)	Mar. 31, 2013 EUR (€)	Mar. 31, 2013 Forward contracts USD ($)	Mar. 31, 2013 Forward contracts EUR (€)	Mar. 31, 2013 Forward contracts Minimum	Mar. 31, 2013 Forward contracts Maximum	Mar. 31, 2013 Forward Contracts Two USD ($)	Mar. 31, 2013 Forward Contracts Two EUR (€)	Mar. 31, 2013 Forward Contracts Two Minimum	Mar. 31, 2013 Forward Contracts Two Maximum
Foreign Currency Derivatives
Notional Amount		€ 63,350		€ 53,550				€ 9,800
Derivative, Floor Price			1.28	1.28
Derivative, Cap Price			1.30	1.30					1.35
Effective Date			May 01, 2012	May 01, 2012			Dec. 01, 2012	Dec. 01, 2012
Expiration Date					Jun. 01, 2013	Jun. 01, 2017	Sep. 01, 2017	Sep. 01, 2017		Mar. 01, 2018
Fair Value	$ 251		$ (114)				$ 365

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Equity Investments in Real Estate (Details 1) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Ownership interest in equity investments:
Equity investments in real estate	$ 221,604	$ 227,675
True Value Company
Ownership interest in equity investments:
Ownership Interest in Venture	50.00%
Equity investments in real estate	40,521	43,100
The New York Times Company
Ownership interest in equity investments:
Ownership Interest in Venture	27.00%
Equity investments in real estate	34,965	34,579
U Haul Moving Partners Inc And Mercury Partners LP
Ownership interest in equity investments:
Ownership Interest in Venture	31.00%
Equity investments in real estate	30,746	30,932
Advanced Micro Devices Inc
Ownership interest in equity investments:
Ownership Interest in Venture	67.00%
Equity investments in real estate	27,738	28,619
Schuler AG
Ownership interest in equity investments:
Ownership Interest in Venture	33.00%
Equity investments in real estate	20,777	21,178
Hellweg Die Profi-Baumarkte GmbH & Co KG (Hellweg 1)
Ownership interest in equity investments:
Ownership Interest in Venture	25.00%
Equity investments in real estate	20,440	20,837
The Upper Deck Company
Ownership interest in equity investments:
Ownership Interest in Venture	50.00%
Equity investments in real estate	7,981	7,998
Tieto Enator Plc
Ownership interest in equity investments:
Ownership Interest in Venture	40.00%
Equity investments in real estate	3,879	3,895
Del Monte Corporation
Ownership interest in equity investments:
Ownership Interest in Venture	50.00%
Equity investments in real estate	5,263	5,580
Frontier Spinning Mills Inc
Ownership interest in equity investments:
Ownership Interest in Venture	40.00%
Equity investments in real estate	6,263	6,265
Police Prefecture French Government
Ownership interest in equity investments:
Ownership Interest in Venture	50.00%
Equity investments in real estate	4,373	5,010
Actebis Peacock Gmb H
Ownership interest in equity investments:
Ownership Interest in Venture	30.00%
Equity investments in real estate	4,396	4,477
Pohjola Non Life Insurance Company
Ownership interest in equity investments:
Ownership Interest in Venture	40.00%
Equity investments in real estate	347	190
Barth Europa Transporte Ek M S R Technologies Gmb H
Ownership interest in equity investments:
Ownership Interest in Venture	33.00%
Equity investments in real estate	3,005	3,219
Town Sports International Holdings Inc
Ownership interest in equity investments:
Ownership Interest in Venture	56.00%
Equity investments in real estate	3,014	3,203
OBI AG
Ownership interest in equity investments:
Ownership Interest in Venture	25.00%
Equity investments in real estate	2,021	1,819
Actuant Corporation
Ownership interest in equity investments:
Ownership Interest in Venture	50.00%
Equity investments in real estate	2,600	2,711
Consolidated Systems Inc
Ownership interest in equity investments:
Ownership Interest in Venture	40.00%
Equity investments in real estate	1,980	2,004
Talaria Holdings LLC
Ownership interest in equity investments:
Ownership Interest in Venture	27.00%
Equity investments in real estate	0	453
Thompson Broadcast, Veolia Transport, and Marchal Levage
Ownership interest in equity investments:
Ownership Interest in Venture	35.00%
Equity investments in real estate	$ 1,295	$ 1,606

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Risk Management and Use of Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2013

Risk Management and Use of Derivative Financial Instruments

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

Derivatives Designated		Asset Derivatives Fair Value at				Liability Derivatives Fair Value at
as Hedging Instruments	Balance Sheet Location	March 31, 2013		December 31, 2012		March 31, 2013		December 31, 2012
Foreign currency contracts	Other assets, net	$	365	$	172	$	-	$	-
Foreign currency contracts	Accounts payable,
	accrued expenses and
	other liabilities		-		-		(114)		(2,361)
Interest rate cap	Other assets, net		48		36		-		-
Interest rate swaps	Accounts payable,
	accrued expenses and
	other liabilities		-		-		(5,078)		(5,411)
Derivatives Not Designated
as Hedging Instruments
Stock warrants	Other assets, net		1,161		1,161		-		-
Total derivatives		$	1,574	$	1,369	$	(5,192)	$	(7,772)

Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss)

	Amount of Gain (Loss) Recognized in
	Other Comprehensive (Loss) Income on Derivatives (Effective Portion)
	Three Months Ended March 31,
Derivatives in Cash Flow Hedging Relationships	2013		2012
Interest rate swaps	$	226	$	48
Interest rate cap		14		(467)
Foreign currency contracts		2,440		(568)
Total	$	2,680	$	(987)

		Amount of Gain (Loss) Reclassified from
		Other Comprehensive (Loss) Income into Income (Effective Portion)
		Three Months Ended March 31,
Derivatives in Cash Flow Hedging Relationships		2013		2012
Interest rate swaps	(a)	$	(325)	$	(238)
Foreign currency contracts	(b)		278		148
Total		$	(47)	$	(90)

Schedule of Derivative Instruments

			Notional		Cap	Effective	Effective	Expiration	Fair Value at
Description		Type	Amount		Rate	Interest Rate	Date	Date	March 31, 2013
1-Month London Interbank Offered Rate (“LIBOR”)		“Pay-fixed” swap	$	3,626	N/A	6.7%	2/2008	2/2018	$	(583)
1-Month LIBOR		“Pay-fixed” swap	$	11,179	N/A	5.6%	3/2008	3/2018		(1,586)
1-Month LIBOR		“Pay-fixed” swap	$	5,947	N/A	6.4%	7/2008	7/2018		(999)
1-Month LIBOR		“Pay-fixed” swap	$	3,803	N/A	6.9%	3/2011	3/2021		(557)
1-Month LIBOR		“Pay-fixed” swap	$	5,664	N/A	5.4%	11/2011	12/2020		(250)
1-Month LIBOR		“Pay-fixed” swap	$	5,846	N/A	4.9%	12/2011	12/2021		(242)
1-Month LIBOR		“Pay-fixed” swap	$	8,710	N/A	5.1%	3/2012	11/2019		(426)
3-Month Euro Interbank Offered Rate (“Euribor”)	(a)	Interest rate cap	€	53,083	3.0%	N/A	4/2012	4/2017		48
1-Month LIBOR		“Pay-fixed” swap	$	1,942	N/A	4.6%	5/2012	11/2017		(48)
1-Month LIBOR		“Pay-fixed” swap	$	9,800	N/A	3.3%	6/2012	6/2017		(150)
1-Month LIBOR		“Pay-fixed” swap	$	9,887	N/A	1.6%	9/2012	10/2020		(108)
1-Month LIBOR		“Pay-fixed” swap	$	3,993	N/A	4.9%	2/2013	2/2023		(129)
									$	(5,030)

Ownership

Effective

Interest at

Notional

Cap

Interest

Effective

Expiration

Fair Value at

Description

March 31, 2013

Type

Amount

Rate

Spread

Rate

Date

Date

March 31, 2013

3-Month LIBOR

(a)

25.0%

“Pay-fixed” swap

€

111,838

N/A

N/A

5.0%-5.6%

7/2006-4/2008

10/2015-7/2016

$

(14,512)

3-Month LIBOR

27.3%

Interest rate cap

$

118,374

4%

1.2%

N/A

8/2009

8/2014

-

3-Month Euribor

(a)

35.0%

“Pay-fixed” swap

€

15,970

N/A

N/A

0.9%

4/2012

7/2013

(44)

$

(14,556)

	Notional		Strike		Effective	Expiration	Fair Value at
Type	Amount		Price		Date	Date	March 31, 2013
Forward contracts	€	53,550	$	1.28 - 1.30	5/2012	6/2013 - 6/2017	$	(114)
Forward contracts		9,800		1.35	12/2012	9/2017 - 3/2018		365
	€	63,350					$	251

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Debt (Tables)

3 Months Ended

Mar. 31, 2013

Debt

Schedule of Debt

Years Ending December 31,		Total		(a)
2013 (remainder)		$	33,566
2014			100,545
2015	(b)		253,637
2016			243,563
2017			623,728
Thereafter through 2031			470,891
			1,725,930
Unamortized discount, net	(c)		(4,678)
Total		$	1,721,252

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Business and Organization

3 Months Ended

Mar. 31, 2013

Business and Organization and Basis of Presentation

Nature Of Operations

Note1.Business and Organization

Corporate Property Associates 16 – Global Incorporated (“CPA®:16 – Global”)and, together with its consolidated subsidiaries and predecessors, “we,” “us,” or “our”) is a publicly owned, non-listed real estate investment trust(“REIT”) that invests primarily in commercial properties leased to companies domestically and internationally. We were formed in 2003 and are managed by W. P. Carey Inc. (“WPC”) and its subsidiaries (collectively, the “advisor”). As a REIT, we are not subject to United States(“U.S.”) federal income taxation as long as we satisfy certain requirements, principally relating to the nature of our income, the level of our distributions, and other factors. We earn revenue principally by leasing the properties we own to single corporate tenants, primarily on a triple-net lease basis, which requires the tenant to pay substantially all of the costs associated with operating and maintaining the property. Revenue is subject to fluctuation primarily because of the timing of new lease transactions, lease terminations, lease expirations, contractual rent adjustments, tenant defaults, and sales of properties.

At March 31, 2013, our portfolio was comprised of our full or partial ownership interests in 494 properties, substantially all of which were triple-net leased to 140 tenants, and totaled approximately 47 million square feet, with an occupancy rate of approximately 97.4%. In addition, we own two hotel properties in Minnesota and Tennessee which had an aggregate carrying value of $68.8million atMarch 31, 2013.

On May 2, 2011, Corporate Property Associates 14 Incorporated (“CPA®:14”) merged with and into CPA 16 Merger Sub, Inc. (“CPA 16 Merger Sub”), one of our wholly-owned subsidiaries (the “Merger”).Following the consummation of the Merger, we implemented an internal reorganization pursuant to which we were reorganized as an umbrella partnership real estate investment trust(the “UPREIT Reorganization”)to hold substantially all of our assets and liabilities in CPA 16 LLC(the “Operating Partnership”), a Delaware limited liability company subsidiary (Note 3).At March 31, 2013, we owned 99.985% of general and limited partnership interests in the Operating Partnership. The remaining 0.015% interest in the Operating Partnership is held by a subsidiary of WPC.

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Equity (Tables)

3 Months Ended

Mar. 31, 2013

Equity

Schedule of Stockholders Equity

	Three Months Ended March 31, 2013
			CPA®:16 – Global		Noncontrolling
	Total Equity		Stockholders		Interests
Balance – beginning of period	$	1,423,360	$	1,327,880	$	95,480
Shares issued (1,435,476 total shares issued)		12,549		12,549		-
Contributions		180		-		180
Net income		7,393		2,742		4,651
Distributions		(37,973)		(34,149)		(3,824)
Available Cash Distribution to the advisor		(3,614)		-		(3,614)
Change in Other comprehensive (loss) income		(6,186)		(5,215)		(971)
Shares repurchased		(4,952)		(4,952)		-
Balance – end of period	$	1,390,757	$	1,298,855	$	91,902

	Three Months Ended March 31, 2012
			CPA®:16 – Global		Noncontrolling
	Total Equity		Stockholders		Interests
Balance – beginning of period	$	1,501,283	$	1,424,057	$	77,226
Shares issued (1,532,378 total shares issued)		13,250		13,250		-
Contributions		2,754		-		2,754
Net income		11,093		7,320		3,773
Distributions		(36,790)		(33,720)		(3,070)
Available Cash Distribution to the advisor		(4,281)		-		(4,281)
Change in Other comprehensive (loss) income		8,367		7,191		1,176
Shares reissued		117		117		-
Balance – end of period	$	1,495,793	$	1,418,215	$	77,578

Redeemable Noncontrolling Interest

	Three Months Ended March 31,
	2013		2012
Balance – beginning of period	$	21,747	$	21,306
Net income		(1,845)		-
Contributions		2,300		-
Distributions		(465)		-
Foreign currency translation adjustment		(643)		640
Balance – end of period	$	21,094	$	21,946

Reclassification out of Accumulated Other Comprehensive Income Table Text Block

	Three Months Ended March 31, 2013
	Gains and Losses on Derivative Instruments		Unrealized Gains and Losses on Marketable Securities		Foreign Currency Translation Adjustments		Total
Balance – beginning of period	$	(10,472)	$	(10)	$	(16,561)	$	(27,043)
Other comprehensive (loss) income before reclassifications		3,134		3		(8,406)		(5,269)
Amounts reclassified from accumulated other comprehensive loss:
Interest expense		325		-		-		325
Other income and (expenses)		(278)		-		-		(278)
Net income from equity investments in real estate		7		-		-		7
Total		54		-		-		54
Net current-period Other comprehensive (loss) income		3,188		3		(8,406)		(5,215)
Balance – end of period	$	(7,284)	$	(7)	$	(24,967)	$	(32,258)

	Three Months Ended March 31, 2012
	Gains and Losses on Derivative Instruments		Unrealized Gains and Losses on Marketable Securities		Foreign Currency Translation Adjustments		Total
Balance – beginning of period	$	(4,622)	$	(52)	$	(22,856)	$	(27,530)
Other comprehensive (loss) income before reclassifications		(1,479)		(17)		8,303		6,807
Amounts reclassified from accumulated other comprehensive loss:
Interest expense		238		-		-		238
Other income and (expenses)		(148)		-		-		(148)
Net income from equity investments in real estate		294		-		-		294
Total		384		-		-		384
Net current-period Other comprehensive (loss) income		(1,095)		(17)		8,303		7,191
Balance – end of period	$	(5,717)	$	(69)	$	(14,553)	$	(20,339)

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Finance Receivables (Narratives 1) (Details) (USD $)	1 Months Ended	3 Months Ended
	Oct. 31, 2012	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
Hellweg 2
Receivable contract details
Receivable with imputed interest, face amount		$ 21,100,000		$ 21,700,000
Receivable with imputed interest, effective yield (interest rate)		8.00%
Receivable with imputed interest, due date		Apr. 01, 2017
Ownership interest		24.70%
Hellweg 2 | Noncontrolling Interest
Receivable contract details
Receivable with imputed interest, face amount		15,700,000		16,100,000
Ownership interest		75.30%
Production Resources Group
Receivable contract details
Receivable with imputed interest, face amount		11,700,000		11,800,000
Bargain purchase lease transfer value		1
Precentage threshold where property can derecognized			5.00%
Gain on derecognition of property	100,000
Deferred gain on derecognition of property		$ 3,800,000

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Risk Management and Use of Derivative Financial Instruments (Details 3) (Cash Flow Hedging, USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
Amount of Gain (Loss) Reclassified from OCI into Income (Effective Portion)	$ (47)	$ (90)
Interest rate swaps
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
Amount of Gain (Loss) Reclassified from OCI into Income (Effective Portion)	(325)	(238)
Foreign currency contracts
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
Amount of Gain (Loss) Reclassified from OCI into Income (Effective Portion)	$ 278	$ 148

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Statement of Financial Position (Unaudited) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Investments in real estate:
Real estate, at cost (inclusive of amounts attributable to consolidated variable interest entities (VIEs) of $516,529 and $528,858, respectively)	$ 2,195,084	$ 2,243,470
Operating real estate, at cost (inclusive of amounts attributable to consolidated VIEs of $29,219 and $29,219, respectively)	85,646	85,565
Accumulated depreciation (inclusive of amounts attributable to consolidated VIEs of $70,222 and 68,529, respectively)	(269,279)	(258,655)
Net investments in properties	2,011,451	2,070,380
Net investments in direct financing leases (inclusive of amounts attributable to consolidated VIEs of $47,412 and $48,363, respectively)	459,706	467,831
Equity investments in real estate	221,604	227,675
Net investments in real estate	2,692,761	2,765,886
Notes receivable (inclusive of amounts attributable to consolidated VIEs of $32,834 and $33,558, respectively)	42,681	43,394
Cash and cash equivalents (inclusive of amounts attributable to consolidated VIEs of $10,339 and $10,993, respectively)	64,207	66,405
Intangible assets, net (inclusive of amounts attributable to consolidated VIEs of $60,470 and $62,182, respectively)	419,029	443,092
Funds in escrow (inclusive of amounts attributable to consolidated VIEs of $2,979 and $3,268, respectively)	23,904	23,274
Other assets, net (inclusive of amounts attributable to consolidated VIEs of $6,006 and $5,225, respectively)	62,853	64,741
Total assets	3,305,435	3,406,792
Liabilities:
Non-recourse debt (inclusive of amounts attributable to consolidated VIEs of $472,542 and $485,951, respectively)	1,621,252	1,644,180
Line of credit	100,000	143,000
Accounts payable accrued expenses and other liabilities (inclusive of amounts attributable to consolidated VIEs of $12,328 and $12,409, respectively)	38,436	40,931
Prepaid and deferred rental income and security deposits (inclusive of amounts attributable to consolidated VIEs of $24,650 and $25,402, respectively)	91,970	93,208
Due to affiliates	7,776	6,401
Distributions payable	34,150	33,965
Total liabilities	1,893,584	1,961,685
Redeemable noncontrolling interest	21,094	21,747
Commitments and Contingencies (Note 11)
CPA:16 Global stockholders' equity:
Common stock $0.001 par value; 400,000,000 shares authorized; 218,268,380 and 216,822,067 shares issued and outstanding, respectively	216	217
Additional paid-in capital	1,993,534	1,980,984
Distributions in excess of accumulated earnings	(531,457)	(500,050)
Accumulated other comprehensive loss	(32,258)	(27,043)
Less, treasury stock at cost, 14,789,503 and 14,204,793 shares, respectively	(131,180)	(126,228)
Total CPA:16 Global stockholders' equity	1,298,855	1,327,880
Noncontrolling interests	91,902	95,480
Total equity	1,390,757	1,423,360
Total liabilities and equity	$ 3,305,435	$ 3,406,792

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Intangible Assets and Liabilities (Narratives) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Intangible Assets and Liabilities [Abstract]
Amortization of Intangible Assets	$ 12.9	$ 14.1
Maximum
Amortizable Intangible Assets
Finite lived intangible asset useful life	40 years
Minimum
Amortizable Intangible Assets
Finite lived intangible asset useful life	4 years

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Consolidated Statements Of Comprehensive Income (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Statement Of Income And Comprehensive Income
Net Income	$ 5,492	$ 11,448
Other Comprehensive (Loss) Income:
Foreign currency translation adjustments	(10,020)	10,119
Change in unrealized appreciation (depreciation) on marketable securities	3	(17)
Change in unrealized gain (loss) on derivative instruments	3,188	(1,095)
Total other comprehensive (loss) income	(6,829)	9,007
Comprehensive (Loss) Income	(1,337)	20,455
Amounts Attributable to Noncontrolling Interests:
Less: Net income attributable to noncontrolling interests (inclusive of Available Cash Distributions to advisor of $3,614, and $4,281, respectively)	(4,651)	(3,773)
Foreign currency translation adjustments	971	(1,176)
Comprehensive income attributable to noncontrolling interests	(3,680)	(4,949)
Amounts Attributable To Redeemable Noncontrolling Interests
Less: Net loss (income) attributable to redeemable noncontrolling interests	1,901	(355)
Foreign currency translation adjustments	643	(640)
Comprehensive loss (income) attributable to redeemable noncontrolling interests	2,544	(995)
Comprehensive (Loss) Income Attributable to CPA:16 - Global Stockholders	$ (2,473)	$ 14,511

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Debt (Details 1) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013
Long-term Debt, by Maturity
2013 ( remainder)	$ 33,566
2014	100,545
2015	253,637
2016	243,563
2017	623,728
Thereafter through 2031	470,891
Total excluding unamortized premium net	1,725,930
Unamortized premium, net	(4,678)
Total	$ 1,721,252

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Basis of Presentation (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
International Real Estate Investments
Revenues	$ 79,542	$ 82,102
Income from continuing operations before income taxes	7,470	20,221
Net income	5,492	11,448
International
International Real Estate Investments
Revenues	25,886	28,879
Income from continuing operations before income taxes	4,398	7,375
Net income	(1,524)	4,934
International Assets
Investment in real estate	$ 947,335		$ 979,503

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Discontinued Operations (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Disposal Group, Including Discontinued Operation, Income Statement Disclosures
Revenues	$ 537	$ (2,114)
Expenses	(318)	(4,113)
Gain (loss) on sale of real estate	2,701	(2,191)
Impairment charges	0	(485)
Income (loss) from discontinued operations, net of tax	$ 2,920	$ (4,675)

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2013

Basis of Presentation

Consolidation, Policy

Basis of Consolidation

The consolidated financial statements reflect all of our accounts, including those of our majority-owned and/or controlled subsidiaries and our tenancy-in-common interests, as described below. The portion of equity in a consolidated subsidiary that is not attributable, directly or indirectly, to us is presented as noncontrolling interests. All significant intercompany accounts and transactions have been eliminated.

We have investments in tenancy-in-common interests in various domestic and international properties. Consolidation of these investments is not required as such interests do not qualify as VIEs and do not meet the control requirement required for consolidation. Accordingly, we account for these investments using the equity method of accounting. We use the equity method of accounting because the shared decision-making involved in a tenancy-in-common interest investment provides us with significant influence on the operating and financial decisions of these investments.

Additionally, we own interests in single-tenant net leased properties leased to companies through noncontrolling interests in partnerships and limited liability companies that we do not control but over which we exercise significant influence. We account for these investments under the equity method of accounting. At times, the carrying value of our equity investments may fall below zero for certain investments. We intend to fund our share of the jointly-owned investments' future operating deficits should the need arise. However, we have no legal obligation to pay for any of the liabilities of such investments nor do we have any legal obligation to fund operating deficits.

We apply accounting guidance for consolidation of VIEs to certain entities in which the equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. Fixed price purchase and renewal options within a lease as well as certain decision-making rights within a loan can cause us to consider an entity a VIE.

Derivatives, Policy

We measure derivative instruments at fair value and record them as assets or liabilities, depending on our rights or obligations under the applicable derivative contract. Derivatives that are not designated as hedges must be adjusted to fair value through earnings. For a derivative designated and that qualified as a cash flow hedge, the effective portion of the change in fair value of the derivative is recognized in Other comprehensive (loss) income until the hedged item is recognized in earnings. The ineffective portion of a derivative's change in fair value is immediately recognized in earnings.

New Accounting Policy, Policy

New Accounting Requirements

The following Accounting Standards Updates (“ASUs”) promulgated by Financial Accounting Standards Board (“FASB”) are applicable to us as indicated:

ASU 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities — In January 2013, the FASB issued an update to ASU 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. ASU 2013-01 clarifies that the scope of ASU 2011-11 applies to derivatives accounted for in accordance with Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with Sections 210-20-45 or Section 815-10-45 or subject to an enforceable master netting or similar arrangement. These amendments did not have a significant impact on our financial position or results of operations and are applicable to us for our interim and annual reports beginning in 2013 and shall be applied retrospectively.

ASU 2013-02, Other Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income — In February 2013, the FASB issued ASU 2013-02 requiring entities to disclose additional information about items reclassified out of accumulated other comprehensive income. This ASU impacts the form of our disclosures only, is applicable to us for our interim and annual reports beginning in 2013. The related additional disclosures are located in Note 12.

ASU 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date, a consensus of the FASB Emerging Issues Task Force — In February 2013, the FASB issued ASU 2013-04, which requires entities to measure obligations resulting from joint and several liability arrangements (in our case, tenancy-in-common arrangements) for which the total amount of the obligation is fixed as the sum of the amount the entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. This ASU is applicable to us for our interim and annual reports beginning in 2014, shall be applied retrospectively, and is not expected to have a significant impact on our financial position or results of operations for any of the periods presented.

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Agreements and Transactions with Related Parties (Narratives) (Details)	3 Months Ended
	Mar. 31, 2013	Dec. 31, 2012
Summary of Fees Paid and Expensed to Advisor
Percentage of real estate assets management fee paid to advisor	0.50%
Percentage paid to advisor for subordinated incentive fee	6.00%
Percentage of available cash distribution to advisor	10.00%
Available Cash Distribution
Maximum Available Cash Distributions	0.50%
Final distibution for Special General Partners	15.00%
Personnel And Office Rent Reimbursement
Percentage of average invested asset guideline	2.00%
Percentage of net income guideline	25.00%
Transaction Fees
Maximum percentage of acquisition fees payable	4.50%
Average percentage of acquisition fees payable current	2.50%
Average percentage of acquisition fees payable deferred	2.00%
Interest rate on deferred acquistion fees	5.00%
Morgtage refinancing fee	1.00%
Footnote Details
Common stock shares outstanding	218,268,380	216,822,067
Percentage of asset management fees paid in cash	50.00%
Percentage of asset management fees paid in stock	50.00%
Special member interest	0.015%
Minimum
Footnote Details
Ownership interest in joint ventures	25.00%
Maximum
Footnote Details
Ownership interest in joint ventures	90.00%
Advisor
Footnote Details
Common stock shares outstanding	37,553,551
Percentage of common stock owned	18.50%

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Agreements and Transactions with Related Parties (Tables)

3 Months Ended

Mar. 31, 2013

Agreements and Transactions with Related Parties

Schedule of Related Party Transactions

	Three Months Ended March 31,
	2013		2012
Amounts Included in the Consolidated Statements of Income:
Asset management fees	$	4,498	$	4,701
Available Cash Distribution		3,614		4,281
Personnel reimbursements		3,376		1,626
Office rent reimbursements		380		311
	$	11,868	$	10,919
Other Transaction Fees Incurred:
Mortgage refinancing fees	$	313	$	-
	$	313	$	-
	March 31, 2013		December 31, 2012
Unpaid Transaction Fees:
Deferred acquisition fees	$	1,212	$	1,757
Subordinated disposition fees		1,197		1,197
	$	2,409	$	2,954

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Consolidated Statements Of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Cash Flows - Operating Activities
Net income	$ 5,492	$ 11,448
Adjustments to net income:
Depreciation and amortization including intangible assets and deferred financing costs	23,915	28,295
Net income from equity investments in real estate in excess of distributions received	(650)	(3,096)
Issuance of shares to affiliate in satisfaction of fees due	3,773	4,781
(Gain) loss on sale of real estate	(2,701)	2,191
Unrealized loss (gain) on foreign currency transactions and others	1,433	(910)
Realized (gain) loss on foreign currency transactions and others	(367)	206
Straight-line rent adjustment and amortization of rent-related intangibles	4,166	2,407
Loss on extinguishment of debt	0	507
Impairment charges	9,313	495
Net changes in other operating assets and liabilities	3,789	188
Net cash provided by operating activities	48,163	46,512
Cash Flows - Investing Activities
Distributions received from equity investments in real estate in excess of equity income	4,427	4,047
Expenditures on capital improvements	(81)	(253)
Maturities of debt securities	66	42
Proceeds from sale of real estate	27,942	11,753
Funds placed in escrow	(3,875)	(1,651)
Funds released from escrow	2,966	2,449
Payment of deferred acquisition fees to an affiliate	(546)	(1,633)
Proceeds from repayment of notes receivable	70	24,021
Interest income from direct financing leases in excess of cash receipts	1,227
Net cash provided by investing activities	32,196	38,775
Cash Flows - Financing Activities
Distributions paid	(33,964)	(33,423)
Contributions from noncontrolling interests	2,480	2,754
Distributions to noncontrolling interests	(7,904)	(7,811)
Scheduled payments of mortgage principal	(10,586)	(21,613)
Prepayments of mortgage principal	(4,925)	(17,919)
Proceeds from mortgage financing	13,000	11,075
Proceeds from line of credit	25,000
Repayments of line of credit	(68,000)	(54,000)
Funds placed in escrow		422
Funds released from escrow		(423)
Deferred financing costs and mortgage deposits	(334)	(772)
Proceeds from issuance of shares, net of issuance costs	8,776	8,469
(Purchase) reissuance of treasury stock	(4,952)	117
Net cash used in financing activities	(81,409)	(113,124)
Change in Cash and Cash Equivalents During the Period
Effect of exchange rate changes on cash	(1,148)	1,043
Net decrease in cash and cash equivalents	(2,198)	(26,794)
Cash and cash equivalents, beginning of period	66,405	109,694
Cash and cash equivalents, end of period	$ 64,207	$ 82,900

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Statement of Financial Position(Unaudited) (Parentheticals) (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Assets:
Real estate, at cost attributable to consolidated VIEs	$ 2,195,084	$ 2,243,470
Operating real estate attributable to consolidated VIEs	85,646	85,565
Accumulated depreciation attributable to consolidated VIEs	269,279	258,655
Net investments in direct financing leases attributable to consolidated VIEs	459,706	467,831
Notes receivable attributable to consolidated VIEs	42,681	43,394
Cash and cash equivalents attributable to consolidated VIEs	64,207	66,405
Intangible assets, net attributable to VIEs	419,029	443,092
Funds in escrow attributable to consolidated VIEs	23,904	23,274
Other assets, net attributable to consolidated VIEs	62,853	64,741
Liabilities:
Non-recourse and limited-recourse debt attributable to consolidated VIEs	1,621,252	1,644,180
Accounts payable, accrued expenses, and other liabilities attributable to consolidated VIEs	38,436	40,931
Prepaid and deferred rental income and security deposits attributable to VIEs	91,970	93,208
CPA:16 Global stockholders' equity:
Common stock, par value	$ 0.001	$ 0.001
Common stock shares authorized	400,000,000	400,000,000
Common stock shares issued	218,268,380	216,822,067
Common stock shares outstanding	218,268,380	216,822,067
Treasury stock shares	14,789,503	14,204,793
Variable Interest Entity Primary Beneficiary
Assets:
Real estate, at cost attributable to consolidated VIEs	516,529	528,858
Operating real estate attributable to consolidated VIEs	29,219	29,219
Accumulated depreciation attributable to consolidated VIEs	70,222	68,529
Net investments in direct financing leases attributable to consolidated VIEs	47,412	48,363
Notes receivable attributable to consolidated VIEs	32,834	33,558
Cash and cash equivalents attributable to consolidated VIEs	10,339	10,993
Intangible assets, net attributable to VIEs	60,470	62,182
Funds in escrow attributable to consolidated VIEs	2,979	3,268
Other assets, net attributable to consolidated VIEs	6,006	5,225
Liabilities:
Non-recourse and limited-recourse debt attributable to consolidated VIEs	472,542	485,951
Accounts payable, accrued expenses, and other liabilities attributable to consolidated VIEs	12,328	12,409
Prepaid and deferred rental income and security deposits attributable to VIEs	$ 24,650	$ 25,402

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Debt

3 Months Ended

Mar. 31, 2013

Debt

Debt

Note10.Debt

Non-Recourse Debt

Non-recoursedebt consists of mortgage notes payable, which are collateralized by the assignment of real property and direct financing leases, with an aggregate carrying value of $2.4 billionat bothMarch 31, 2013 and December 31,2012. At March 31, 2013, our mortgage notes payable had fixed annual interest rates ranging from 4.3% to 7.8% and variable annual effective interest rates ranging from 1.2% to 6.9%, with maturity dates ranging from 2014 to 2031.

Duringthe three months ended March 31, 2013, we obtained new non-recourse mortgage financing totaling $13.0 million, witha weighted-average annual interest rate and term of 4.5% and 13.0 years, respectively. Of the total financing, $4.0 million bears interest at a variable rate that has been effectively converted to a fixed annual interest rate through the use of an interest rate swap.

At March 31, 2013, two of our property-owning subsidiaries were in default on theirrespective non-recourse mortgage obligationswith anaggregate outstanding balance of $16.7 million. In each case, the default was related to the tenant filing for bankruptcy.

During 2012, we entered into an arrangement with one of our lenders on a non-recourse financing that enabled us to repay the outstanding indebtedness of approximately $10.0 million for cash of approximately $8.7 million at a discount. As part of this arrangement, we have a contingent obligation to pay the lender any proceeds received from a sale of the previously-collateralized property in excess of $6.0 million within two years. We have accounted for this as a troubled debt restructuring and,accordingly, we have not recognized a gain on the discounted payoff.We will recognize this gain upon expiration of the contingent obligation.

Line of Credit

On May 2, 2011, we entered into the Credit Agreement with several banks, including Bank of America, N.A., which acts as the administrative agent. CPA 16 Merger Subis the borrower, and we and the Operating Partnershipare guarantors. On August 1, 2012, we amended the Credit Agreement to reduce the amount available under the secured revolving credit facility from $320.0 million to $225.0 million, to reduce our annual interest rate from LIBOR plus 3.25% to LIBOR plus 2.50%, and to decrease the number of properties in our borrowing base pool. The Credit Agreement is scheduled to mature on August 1, 2015, with an option by CPA 16 Merger Sub to extend the maturity date for an additional 12 months subject to the conditions provided in the Credit Agreement. We incurred costs of $1.1 million to amend the facility, which are being amortized over the term of the Credit Agreement.

Availability under the Credit Agreement is dependent upon the number, operating performance, cash flows and diversification of the properties comprising the borrowing base pool. At March 31, 2013, availability under the line was $211.5million, of which we had drawn $100.0 million.

The Credit Agreement is fully recourse to us and contains customary affirmative and negative covenants, including covenants that restrict our and our subsidiaries' ability to, among other things, incur additional indebtedness (other than non-recourse indebtedness), grant liens, dispose of assets, merge or consolidate, make investments, make acquisitions, pay distributions, enter into certain transactions with affiliates, and change the nature of our business or fiscal year. In addition, the Credit Agreement contains customary events of default.

The Credit Agreement stipulates certain financial covenants that require us to maintain certain ratios and benchmarks at the end of each quarter.We were in compliance with these covenants atMarch 31, 2013.

Scheduled Debt Principal Payments

Scheduled debt principal payments during the remainder of 2013,each of the next four calendar years following December 31, 2013, and thereafter are as follows (in thousands):

Years Ending December 31,	Total (a)
2013 (remainder)	$	33,566
2014		100,545
2015 (b)		253,637
2016		243,563
2017		623,728
Thereafter through 2031		470,891
		1,725,930
Unamortized discount, net (c)		(4,678)
Total	$	1,721,252

__________

• Certain amounts are based on the applicable foreign currency exchange rate at March 31, 2013.
• Includes $100.0million outstanding under our Credit Agreement, which is scheduled to mature in 2015, unless extended pursuant to its terms.
• Represents the fairvalue adjustment of $6.0 million resulting from the assumption of property-level debt in connection with the Merger, partially offset by a $1.3 million unamortized discount on a non-recourse loan that we repurchased from the lender.

Certain amounts in the table above are based on the applicable foreign currency exchange rate at March 31, 2013. In addition, due to the strengthening of the U.S. dollar relative to foreign currencies during the three months ended March 31, 2013, debt decreased by $20.6 million from December 31, 2012 to March 31, 2013.

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Document and Entity Information	3 Months Ended
	Mar. 31, 2013	May 01, 2013
Document Entity Information [Abstract]
Document Type	10-Q
Document Period End Date	Mar. 31, 2013
Amendment Flag	false
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0001250873
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Registrant Name	Corporate Property Associates 16 Global Incorporated
Entity Voluntary Filers	No
Entity Well Known Seasoned Issuer	No
Entity Common Stock Shares Outstanding		204,537,575

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2013

Commitments And Contingencies

Commitments And Contingencies

Note11.Commitments and Contingencies

Various claims and lawsuits arising in the normal course of business are pending against us. The results of these proceedings are not expected to have a material adverse effect on our consolidated financial position or results of operations.

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Statement of Earnings (Unaudited) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Revenues
Rental income	$ 59,959	$ 61,887
Interest income from direct financing leases	10,081	10,081
Lease revenue	70,040	71,968
Other operating income	2,411	2,554
Interest income on notes receivable	735	1,172
Other real estate income	6,356	6,408
Gross revenues	79,542	82,102
Operating Expenses
General and administrative	(5,923)	(4,729)
Depreciation and amortization	(22,819)	(23,847)
Property expenses	(9,613)	(9,073)
Other real estate expenses	(4,695)	(4,839)
Impairment charges	(9,313)	(10)
Costs and expenses	(52,363)	(42,498)
Other Income and Expenses
Net income from equity investments in real estate	5,525	7,544
Other income and (expenses)	(845)	862
Loss on extinguishment of debt		(507)
Interest expense	(24,389)	(27,282)
Nonoperating income expense	(19,709)	(19,383)
Income from continuing operations before income taxes	7,470	20,221
Provision for income taxes	(4,898)	(4,098)
Income from continuing operations	2,572	16,123
Discontinued Operations
Income (loss) from operations of discontinued properties	219	(1,999)
Gain (loss) on sale of real estate	2,701	(2,191)
Impairment charges	0	(485)
Income (loss) from discontinued operations, net of tax	2,920	(4,675)
Net Income	5,492	11,448
Less: Net income attributable to noncontrolling interests (inclusive of Available Cash Distributions to advisor of $3,614, and $4,281, respectively)	(4,651)	(3,773)
Less: Net loss (income) attributable to redeemable noncontrolling interests	1,901	(355)
Net Income attributable to CPA 16 Global Stockholders	2,742	7,320
Earnings Per Share
(Loss) income from continuing operations attributable to CPA 16 Global stockholders	$ 0	$ 0.06
Income (loss) from discontinued operations attributable to CPA 16 Global stockholders	$ 0.01	$ (0.03)
Net income attributable to CPA 16 Global stockholders	$ 0.01	$ 0.03
Weighted Average Shares Outstanding	203,530,974	201,306,287
Amounts Attributable to CPA 16 Global Stockholders
(Loss) income from continuing operations, net of tax	(178)	11,995
Income (loss) from discontinued operations, net of tax	2,920	(4,675)
Net income attributable to CPA 16 Global stockholders	$ 2,742	$ 7,320
Distributions Declared Per Share	$ 0.1678	$ 0.1670

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Finance Receivables

3 Months Ended

Mar. 31, 2013

Finance Receivables

Finance Receivables

Note 5. Finance Receivables

Assets representing rights to receive money on demand or at fixed or determinable dates are referred to as finance receivables. Our finance receivable portfolios consist of our Net investments in direct financing leasesand Notes receivable.

Notes Receivable

Hellweg 2

Under the terms of the note receivable acquired in connection with the April 2007 investment in which we and our affiliates acquired a property-owning investment that in turn acquired a 24.7% ownership interest in a limited partnership and a lending investment that made a loan (“the note receivable”) to the holder of the remaining 75.3% interests in the limited partnership (“Hellweg 2 transaction”), the lending investment will receive interest at a fixed annual rate of 8%. The note receivable matures in April 2017. The note receivable had a principal balance of $21.1 millionand $21.7 million, inclusive of our affiliates' noncontrolling interest of $15.7 million and $16.1 million, atMarch 31, 2013 and December 31,2012, respectively.

Production Resource Group, LLC

In January 2012, we restructured our lease with Production Resource Group, LLC (“PRG”) so as to extend the lease term to June 2029 and also give PRG the option to purchase the property at predetermined dates and prices during the lease term. If PRG does not exercise its purchase option during the term of the lease, the property transfers to the tenant for $1 at the end of the lease term. The restructured lease is accounted for as a sales-type lease due to the automatic transfer of title at the end of the lease. In addition, because the minimum initial and continuing investment criteria were not met at the inception of the sales-type lease, the sale of the asset is accounted for under the deposit method. The property is not derecognized and all periodic cash payments received under the lease are carried on the balance sheet as a deposit liability until approximately 5% of the purchase price has been collected. By October 2012, the aggregate cash payments received crossed the 5% threshold and accordingly we derecognized the property and recognized a gain of $0.1 million. We also recognized a note receivable, which had a balance of $11.7 million and $11.8million at March 31, 2013 and December 31, 2012, respectively, to reflect the expected future payments under the lease. The remaining deferred gain of $3.8 million as of March 31, 2013 will be recognized into income in proportion to the principal payments on the note until we have received 20% of the purchase price. At that time, the full gain will be recognized.

Other

We had a B-note receivable that totaled $9.8 million at both March 31, 2013 and December 31,2012 with a fixed annual interest rate of 6.3% and a maturity date of February11, 2015.

Credit Quality of Finance Receivables

We generally seek investments in facilities that we believe are critical to each tenant's business and that we believe have a low risk of tenant defaults. At March 31, 2013 and December 31,2012, none of the balances of our finance receivables were past due. Our allowance for uncollected accounts was$0.3 million and $0.2 million atMarch 31, 2013 and December 31,2012, respectively. Additionally, there have been no modifications of finance receivables duringthe three months ended March 31, 2013. We evaluate the credit quality of our tenant receivables utilizing an internal 5-point credit rating scale, with 1 representing the highest credit quality and 5 representing the lowest. The credit quality evaluation of our tenant receivables was last updated in the first quarter of 2013.

A summary of our finance receivables by internal credit quality rating for the periods presented is as follows (dollars in thousands):

	Number of Tenants at		Net Investments in Direct Financing Leases at
Internal Credit Quality Indicator	March 31, 2013	December 31, 2012	March 31, 2013		December 31, 2012
1	1	1	$	43,124	$	43,213
2	1	2		26,893		35,197
3	12	13		200,083		230,527
4	9	7		183,576		152,902
5	1	1		6,030		5,992
			$	459,706	$	467,831

	Number of Obligors at		Notes Receivable at
Internal Credit Quality Indicator	March 31, 2013	December 31, 2012	March 31, 2013		December 31, 2012
1	-	-	$	-	$	-
2	1	1		9,847		9,836
3	2	2		32,834		33,558
4	-	-		-		-
5	-	-		-		-
			$	42,681	$	43,394

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Net Investments in Properties

3 Months Ended

Mar. 31, 2013

Net Investments in Properties

Net Investments in Properties

Note4.Net Investments in Properties

Real Estate

Real estate, which consists of land and buildings leased to others under operating leases and are carried at cost, is summarized as follows (in thousands):

	March 31, 2013		December 31, 2012
Land	$	457,694	$	470,809
Buildings		1,737,390		1,772,661
Less: Accumulated depreciation		(252,461)		(242,648)
	$	1,942,623	$	2,000,822

We did not acquire any real estate assets during the three months ended March 31, 2013. During this period, the U.S. dollar strengthened against the euro, as the end-of-period rate for the U.S. dollar in relation to the euro at March 31, 2013decreased by3.0% to $1.2821 from $1.3218 at December 31, 2012. The impact of this strengthening was a $17.8 million decrease in Real estate from December 31, 2012 to March 31, 2013.Assets disposed of during the three months ended March 31, 2013also accounted for a significant portion of the decrease in real estate and are discussed in Note13.

Operating Real Estate

Operating real estate, which consists of our two hotel operations, at cost, is summarized as follows (in thousands):

	March 31, 2013		December 31, 2012
Land	$	8,296	$	8,296
Buildings		68,533		68,505
Furniture, fixtures, and equipment		8,817		8,764
Less: Accumulated depreciation		(16,818)		(16,007)
	$	68,828	$	69,558

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Basis of Presentation (Tables)

3 Months Ended

Mar. 31, 2013

Basis of Presentation

International Investments Revenues And Net Investments In Real Estate

	Three Months Ended March 31,
	2013		2012
Revenues	$	25,886	$	28,879
Income from continuing operations before income taxes		4,398		7,375
Net (loss) income		(1,524)		4,934
	March 31, 2013		December 31, 2012
Net investments in real estate	$	947,335	$	979,503

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Equity

3 Months Ended

Mar. 31, 2013

Equity

Equity

Note12. Equity

Noncontrolling Interests

Noncontrolling interests is the portion of equity in a subsidiary not attributable, directly or indirectly, to us.There were no changes in our ownership interest in any of our consolidated subsidiaries for the three months ended March 31, 2013.

The following table presents a reconciliation of total equity, the equity attributable to our stockholders, and the equity attributable to noncontrolling interests (in thousands, except share amounts):

	Three Months Ended March 31, 2013
			CPA®:16 – Global		Noncontrolling
	Total Equity		Stockholders		Interests
Balance – beginning of period	$	1,423,360	$	1,327,880	$	95,480
Shares issued (1,435,476 total shares issued)		12,549		12,549		-
Contributions		180		-		180
Net income		7,393		2,742		4,651
Distributions		(37,973)		(34,149)		(3,824)
Available Cash Distribution to the advisor		(3,614)		-		(3,614)
Change in Other comprehensive (loss) income		(6,186)		(5,215)		(971)
Shares repurchased		(4,952)		(4,952)		-
Balance – end of period	$	1,390,757	$	1,298,855	$	91,902

	Three Months Ended March 31, 2012
			CPA®:16 – Global		Noncontrolling
	Total Equity		Stockholders		Interests
Balance – beginning of period	$	1,501,283	$	1,424,057	$	77,226
Shares issued (1,532,378 total shares issued)		13,250		13,250		-
Contributions		2,754		-		2,754
Net income		11,093		7,320		3,773
Distributions		(36,790)		(33,720)		(3,070)
Available Cash Distribution to the advisor		(4,281)		-		(4,281)
Change in Other comprehensive (loss) income		8,367		7,191		1,176
Shares reissued		117		117		-
Balance – end of period	$	1,495,793	$	1,418,215	$	77,578

Redeemable Noncontrolling Interest

We account for the noncontrolling interest in an entity that holds a note receivable recorded in connection with the Hellweg2 transaction as redeemable noncontrolling interest because the transaction contains put options that, if exercised, would obligate the partners to settle in cash. The partners' interests are reflected at estimated redemption value for all periods presented.

The following table presents a reconciliation of redeemable noncontrolling interest (in thousands):

	Three Months Ended March 31,
	2013		2012
Balance – beginning of period	$	21,747	$	21,306
Net income		(1,845)		-
Contributions		2,300		-
Distributions		(465)		-
Foreign currency translation adjustment		(643)		640
Balance – end of period	$	21,094	$	21,946

Reclassifications Out of Accumulated Other Comprehensive Loss

The following table presents a reconciliation of changes in accumulated other comprehensive loss by component (in thousands):

	Three Months Ended March 31, 2013
	Gains and Losses on Derivative Instruments		Unrealized Gains and Losses on Marketable Securities		Foreign Currency Translation Adjustments		Total
Balance – beginning of period	$	(10,472)	$	(10)	$	(16,561)	$	(27,043)
Other comprehensive (loss) income before reclassifications		3,134		3		(8,406)		(5,269)
Amounts reclassified from accumulated other comprehensive loss:
Interest expense		325		-		-		325
Other income and (expenses)		(278)		-		-		(278)
Net income from equity investments in real estate		7		-		-		7
Total		54		-		-		54
Net current-period Other comprehensive (loss) income		3,188		3		(8,406)		(5,215)
Balance – end of period	$	(7,284)	$	(7)	$	(24,967)	$	(32,258)

	Three Months Ended March 31, 2012
	Gains and Losses on Derivative Instruments		Unrealized Gains and Losses on Marketable Securities		Foreign Currency Translation Adjustments		Total
Balance – beginning of period	$	(4,622)	$	(52)	$	(22,856)	$	(27,530)
Other comprehensive (loss) income before reclassifications		(1,479)		(17)		8,303		6,807
Amounts reclassified from accumulated other comprehensive loss:
Interest expense		238		-		-		238
Other income and (expenses)		(148)		-		-		(148)
Net income from equity investments in real estate		294		-		-		294
Total		384		-		-		384
Net current-period Other comprehensive (loss) income		(1,095)		(17)		8,303		7,191
Balance – end of period	$	(5,717)	$	(69)	$	(14,553)	$	(20,339)

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Fair Value Measurements

3 Months Ended

Mar. 31, 2013

Fair Value Disclosures

Fair Value

Note8.Fair Value Measurements

The fair value of an asset is defined as the exit price, which is the amount that would either be received when an asset is sold or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance establishes a three-tier fair value hierarchy based on the inputs used in measuring fair value. These tiers are: Level 1, for which quoted market prices for identical instruments are available in active markets, such as money market funds, equity securities, and U.S. Treasury securities; Level 2, for which there are inputs other than quoted prices included within Level 1 that are observable for the instrument, such as certain derivative instruments including interest rate caps and swaps; and Level 3, for securities that do not fall into Level 1 or Level 2 and for which little or no market data exists, therefore requiring us to develop our own assumptions.

Items Measured at Fair Value on a Recurring Basis

The methods and assumptions described below were used to estimate the fair value of each class of financial instrument. For significant Level 3 items we have also provided the unobservable inputs along with their weighted average ranges.

Derivative Assets — Our derivative assets are comprised of foreign currency forward contracts and an interest rate cap, as well as stock warrants that were granted to us by lessees in connection with structuring initial lease transactions. These assets are included in Other assets, net in the consolidated financial statements. The foreign currency collars and forward contracts and interest rate cap were measured at fair value using readily observable market inputs, such as quotations on interest rates and were classified as Level 2 as these instruments are custom, over-the-counter contracts with various bank counterparties that are not traded in an active market. Ourstock warrants are not traded in an active market. We estimated the fair value of these assets using internal valuation models that incorporate market inputs and our own assumptions about future cash flows. We classified these assets as Level 3.

Derivative Liabilities — Our derivative liabilities are comprised of interest rate swaps and foreign currency forward contracts and are included in Accounts payable, accrued expenses, and other liabilities in the consolidated financial statements. These derivative instruments were measured at fair value using readily observable market inputs, such as quotations on interest rates. These derivative instruments were classified as Level 2 as these instruments are custom, over-the-counter contracts with various bank counterparties that are not traded in an active market.

Our other financial instrumentshad the following carrying values and fair values as of the dates shown (in thousands):

		March 31, 2013				December 31, 2012
	Level	Carrying Value		Fair Value		Carrying Value		Fair Value
Non-recourse debt (a)	3	$	1,621,252	$	1,631,483	$	1,644,180	$	1,656,684
Line of credit	3		100,000		100,000		143,000		143,000
Notes receivable (a)	3		42,681		43,572		43,394		44,363

__________

• We determined the estimated fair value of our otherfinancial instrumentsusing a discounted cash flow model with rates that take into account the credit of the tenant/obligor and interest rate risk. We also considered the value of the underlying collateral, taking into account the quality of the collateral, the credit quality of the tenant/obligor, the time until maturity, and the current market interest rate.

We estimated that our remaining financial assets and liabilities (excluding net investments in direct financing leases) had fair values that approximated their carrying values at both March 31, 2013 and December 31,2012.

Items Measured at Fair Value on a Non-Recurring Basis (Including Impairment Charges)

We periodically assess whether there are any indicators that the value of our real estate investments may be impaired or that their carrying value may not be recoverable. For investments in real estate in which an impairment indicator is identified, we follow a two-step process to determine whether the investment is impaired and to determine the amount of the charge. First, we compare the carrying value of the real estate to the future undiscounted net cash flows that we expect the real estate will generate, including any estimated proceeds from the eventual sale of the real estate. If this amount is less than the carrying value, the real estate is considered to be impaired, and we then measure the loss as the excess of the carrying value of the real estate over the estimated fair value of the real estate, which is primarily determined using market information such as recent comparable sales or broker quotes. If relevant market information is not available or is not deemed appropriate, we perform a future net cash flow analysis discounted for inherent risk associated with each investment. We determined that the significant inputs used to value these investments fall within Level 3 for fair value accounting. As a result of our assessments, we calculated impairment charges based on market conditions and assumptions that existed at the time. The valuation of real estate is subject to significant judgment and actual results may differ materially if market conditions or the underlying assumptions change.

The following table presents information about our assets that were measured on a fair value basis(in thousands):

	Three Months Ended March 31, 2013				Three Months Ended March 31, 2012
	Total Fair Value		Total Impairment		Total Fair Value		Total Impairment
	Measurements (a)		Charges		Measurements		Charges
Net investments in properties	$	8,730	$	9,313	$	-	$	-
Net investments in direct financing leases		-		-		-		10
Total impairment charges included in expenses		8,730		9,313		-		10
Total impairment charges included in income from continuing operations		8,730		9,313		-		10
Impairment charges included in discontinued operations		-		-		4,200		485
Total impairment charges	$	8,730	$	9,313	$	4,200	$	495

__________

• The fair value measurement for Net investments in properties was developed by a third-party source, subject to our corroboration for reasonableness. The third-party source utilized local average rent rates for the previous five years and sales of comparable properties to determine a fair value range of $75-$85 per square foot.

Significant impairment charges, and their related triggering events, recognized during the three months ended March 31, 2013 and 2012were as follows:

Real Estate

2013 — During the three months ended March 31, 2013, we recognized an impairment charge of $9.3 million on a property in order to reduce its carrying value to its estimated fair value due to the property's tenant filing for bankruptcy during the first quarter of 2013. A market participant would likely not ascribe any value to the tenant's lease, so the fair value of the property now reflects the value as if it were vacant.

Properties Sold

2012 — During the three months ended March 31, 2012, we recognized an impairment charge of $0.5 million on a property in order to reduce its carrying value to its estimated fair value due to the tenant vacating the property. The property was subsequently sold in June 2012. The results of operations for this propertyare included in Income (loss) from discontinued operations, net of tax in the consolidated financial statements.

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Equity (Narratives) (Details)	Mar. 31, 2013	Mar. 31, 2012
Stockholders Equity Including Portion Attributable To Noncontrolling Interest Abstract
Shares issued	1,435,476	1,532,378

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Equity Investments in Real Estate

3 Months Ended

Mar. 31, 2013

Equity Method Investments in Real Estate

Equity Method Investments

Note6.Equity Investments in Real Estate

We own equity interests in single-tenant net leased properties that are generally leased to companies through noncontrolling interests (i) in partnerships and limited liability companies that we do not control but over which we exercise significant influenceor (ii) as tenants-in-common subject to common control. Generally, the underlying investments are jointly-owned with affiliates. We account for these investments under the equity method of accounting (i.e., at cost, increased or decreased by our share of earnings or losses, less distributions, plus contributions and other adjustments required by equity method accounting, such as basis differences from other-than-temporary impairments). Investments in unconsolidated investments are required to be evaluated periodically. We compare an investment's carrying value to its estimated fair value and recognize an impairment charge to the extent that the carrying value exceeds fair value and such decline is determined to be other than temporary.

The following table sets forth our ownership interests in our equity investments in real estate and their respective carrying values (dollars in thousands):

	Ownership Interest	Carrying Value at
Lessee	at March 31, 2013	March 31, 2013		December 31, 2012
True Value Company (a) (b) (c)	50%	$	40,521	$	43,100
The New York Times Company (d) (e)	27%		34,965		34,579
U-Haul Moving Partners, Inc. and Mercury Partners, LP (d) (f)	31%		30,746		30,932
Advanced Micro Devices, Inc. (a) (g) (h)	67%		27,738		28,619
Schuler A.G. (a) (h) (i)	33%		20,777		21,178
Hellweg Die Profi-Baumärkte GmbH & Co. KG (Hellweg 1) (a) (i)	25%		20,440		20,837
The Upper Deck Company (a)	50%		7,981		7,998
Frontier Spinning Mills, Inc. (j)	40%		6,263		6,265
Del Monte Corporation (a) (h)	50%		5,263		5,580
Actebis Peacock GmbH (i) (j)	30%		4,396		4,477
Police Prefecture, French Government (a) (i)	50%		4,373		5,010
TietoEnator Plc (a) (i)	40%		3,879		3,895
Town Sports International Holdings, Inc. (a)	56%		3,014		3,203
Barth Europa Transporte e.K/MSR Technologies GmbH (a) (i)	33%		3,005		3,219
Actuant Corporation (a) (i)	50%		2,600		2,711
OBI A.G. (a) (i) (k)	25%		2,021		1,819
Consolidated Systems, Inc. (a) (h)	40%		1,980		2,004
Thomson Broadcast, Veolia Transport, and Marchal Levage (formerly Thales S.A.) (a) (i)	35%		1,295		1,606
Pohjola Non-life Insurance Company (a) (i)	40%		347		190
Talaria Holdings, LLC (l)	27%		-		453
		$	221,604	$	227,675

__________

(a) This investment is jointly-owned with WPC.

(b)In January 2013, the investment repaid three mortgage loans encumbering seven of its properties totaling $64.8 million, of which our share was $32.4 million. Additionally, the investment obtained new non-recourse mortgage financing encumbering six of its properties with proceeds totaling $62.5 million, of which our share was $31.3 million.

(c)       We received distributions of $3.2 million and $1.1 million from this investment during the three months ended March 31, 2013 and 2012, respectively.

(d)This investment is jointly-owned with WPC andCorporate Property Associates 17 – Global Incorporated (“CPA®:17 – Global”).

(e)       We received distributions of $1.2 million and $1.0 million from this investment during the three months ended March 31, 2013 and 2012, respectively.

(f)       We received distributions of $1.3 million and $1.4 million from this investment during the three months ended March 31, 2013 and 2012, respectively.

(g)       We received distributions of $1.3 million from this investment during both the three months ended March 31, 2013 and 2012, respectively.

(h)These investments are considered tenancy-in-common interests, whereby the property is encumbered by debt for which we are jointly and severally liable. For these investments, the co-obligor is the advisor and the aggregate amount due under the arrangements is approximately $76.6 million. Of this amount, $46.5million represents the amount we agreed to pay and is included within the carrying value of these investments. The carrying value of these investments also includes the undepreciated cost of the related properties.

(i)The carrying value of this investment is affected by the impact of fluctuations in the exchange rate of the euro.

(j)This investment is jointly-owned with CPA®:17 – Global.

(k)       This increase was primarily due to the investment's share of other comprehensive income recognized on interest rate swap derivative instruments.

(l)This decrease reflects an asset write-off recorded by the investment during the three months ended March 31, 2013.

We recognized netincome from equity investments in real estate of $5.5million and $7.5millionfor the three months ended March 31, 2013 and2012, respectively. Net income from equity investments in real estate represents our proportionate share of the income or losses of these investments as well as certain depreciation and amortization adjustments related to other-than-temporary impairment charges and basis differentials from acquisitions of certain investments.

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Intangible Assets and Liabilities

3 Months Ended

Mar. 31, 2013

Intangible Assets and Liabilities [Abstract]

Intangible Assets and Liabilities

Note7.Intangible Assets and Liabilities

In connection with our acquisitions of properties, we have recorded net lease intangibles which are being amortized over periods ranging from four years to 40 years.There were no new intangible assets or liabilities recorded during the three months ended March 31, 2013. In-place lease, tenant relationship, above-market rent, below-market ground lease, management contract, and franchise agreement intangibles are included in Intangible assets, net in the consolidated financial statements. Below-market rent intangibles are included in Prepaid and deferred rental income and security deposits in the consolidated financial statements.

Intangible assets and liabilities are summarized as follows (in thousands):

	March 31, 2013						December 31, 2012
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Amortizable Intangible Assets
Management contract	$	874	$	(676)	$	198	$	874	$	(645)	$	229
Franchise agreement		2,240		(1,214)		1,026		2,240		(1,157)		1,083
		3,114		(1,890)		1,224		3,114		(1,802)		1,312
Lease intangibles:
In-place lease		352,247		(108,102)		244,145		361,242		(101,122)		260,120
Tenant relationship		32,674		(7,765)		24,909		33,615		(7,544)		26,071
Above-market rent		193,270		(50,780)		142,490		195,985		(46,688)		149,297
Below-market ground lease		6,738		(477)		6,261		6,752		(460)		6,292
		584,929		(167,124)		417,805		597,594		(155,814)		441,780
Total intangible assets	$	588,043	$	(169,014)	$	419,029	$	600,708	$	(157,616)	$	443,092
Amortizable Below-Market Rent Intangible Liabilities
Below-market rent	$	(64,596)	$	13,682	$	(50,914)	$	(65,148)	$	13,001	$	(52,147)
Total intangible liabilities	$	(64,596)	$	13,682	$	(50,914)	$	(65,148)	$	13,001	$	(52,147)

Net amortization of intangibles, including the effect of foreign currency translation, was $12.9 million and$14.1 millionfor the three months ended March 31, 2013 and 2012, respectively. Amortization of above-market rent,below-market rent, and below-market ground lease intangibles is recorded as an adjustment to Lease revenues, while amortization of management contract, franchise agreement, in-place lease, and tenant relationship intangibles is included in Depreciation and amortization.

Based on the intangible assets and liabilities recorded at March 31, 2013, scheduled netannual amortization of intangibles for the remainder of 2013, each of the next four calendar years following December 31, 2013, and thereafteris as follows (in thousands):

Years Ending December 31,	Total
2013 (remainder)	$	43,702
2014		54,116
2015		47,499
2016		40,320
2017		37,223
Thereafter		145,255
	$	368,115

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Risk Management and Use of Derivative Financial Instruments

3 Months Ended

Mar. 31, 2013

Risk Management and Use of Derivative Financial Instruments

Derivative Instruments And Hedging Activities

Note9.Risk Management and Use of Derivative Financial Instruments

Risk Management

In the normal course of our ongoing business operations, we encounter economic risk. There are three main components of economic risk that impact us: interest rate risk, credit risk, and market risk. We are primarily subject to interest rate risk on ourinterest-bearing assets and liabilities, including our secured credit agreement(the “Credit Agreement,” Note 10). Credit risk is the risk of default on our operations and our tenants' inability or unwillingness to make contractually required payments. Market risk includes changes in the value of our properties and related loans as well as changes in the value of ourother securities due to changes in interest rates or other market factors. In addition, as we own investments outside the U.S., we are subject to the risks associated with changing foreign currency exchange rates.

Use of Derivative Financial Instruments

When we use derivative instruments, it is generally to reduce our exposure to fluctuations in interest rates and foreign currency exchange rate movements. We have not entered, and do not plan to enter into, financial instruments for trading or speculative purposes. In addition to derivative instruments that we entered into on our own behalf, we may also be a party to derivative instruments that are embedded in other contracts, and we may own common stock warrants, granted to us by lessees when structuring lease transactions, which are considered to be derivative instruments. The primary risks related to our use of derivative instruments include default by a counterparty to a hedging arrangement on its obligation and a downgrade in the credit quality of a counterparty to such an extent that our ability to sell or assign our side of the hedging transaction is impaired. While we seek to mitigate these risks by entering into hedging arrangements with counterparties that are large financial institutions that we deem to be creditworthy, it is possible that our hedging transactions, which are intended to limit losses, could adversely affect our earnings. Furthermore, if we terminate a hedging arrangement, we may be obligated to pay certain costs, such as transaction or breakage fees. We have established policies and procedures for risk assessment and the approval, reporting, and monitoring of derivative financial instrument activities.

We measure derivative instruments at fair value and record them as assets or liabilities, depending on our rights or obligations under the applicable derivative contract. Derivatives that are not designated as hedges must be adjusted to fair value through earnings. For a derivative designated and that qualified as a cash flow hedge, the effective portion of the change in fair value of the derivative is recognized in Other comprehensive (loss) income until the hedged item is recognized in earnings. The ineffective portion of a derivative's change in fair value is immediately recognized in earnings.

The following table sets forth certain information regarding our derivative instruments (in thousands):

Derivatives Designated		Asset Derivatives Fair Value at				Liability Derivatives Fair Value at
as Hedging Instruments	Balance Sheet Location	March 31, 2013		December 31, 2012		March 31, 2013		December 31, 2012
Foreign currency contracts	Other assets, net	$	365	$	172	$	-	$	-
Foreign currency contracts	Accounts payable,
	accrued expenses and
	other liabilities		-		-		(114)		(2,361)
Interest rate cap	Other assets, net		48		36		-		-
Interest rate swaps	Accounts payable,
	accrued expenses and
	other liabilities		-		-		(5,078)		(5,411)
Derivatives Not Designated
as Hedging Instruments
Stock warrants	Other assets, net		1,161		1,161		-		-
Total derivatives		$	1,574	$	1,369	$	(5,192)	$	(7,772)

All derivative transactions with an individual counterparty are governed by a master International Swap and Derivatives Association agreement, which can be considered as a master netting arrangement; however, we report all our derivative instruments on a gross basis on the balance sheet. At March 31, 2013, no cash collateral has been posted nor received for any of our derivative positions.

The following tables present the impact of derivative instruments on the consolidated financial statements (in thousands):

	Amount of Gain (Loss) Recognized in
	Other Comprehensive (Loss) Income on Derivatives (Effective Portion)
	Three Months Ended March 31,
Derivatives in Cash Flow Hedging Relationships	2013		2012
Interest rate swaps	$	226	$	48
Interest rate cap		14		(467)
Foreign currency contracts		2,440		(568)
Total	$	2,680	$	(987)

	Amount of Gain (Loss) Reclassified from
	Other Comprehensive (Loss) Income into Income (Effective Portion)
	Three Months Ended March 31,
Derivatives in Cash Flow Hedging Relationships	2013		2012
Interest rate swaps (a)	$	(325)	$	(238)
Foreign currency contracts (b)		278		148
Total	$	(47)	$	(90)

__________

• During both the three months ended March 31, 2013 and 2012, we reclassified $0.1 millionfrom Other comprehensive (loss) income into income related to ineffective portions of hedging relationships on certain interest rate swaps.
• Gains (losses) reclassified from Other comprehensive (loss) income into income for contracts that have settled are included in Other income and (expenses).

See below for information on our purposes for entering into derivative instruments, including those not designated as hedging instruments, and for information on derivative instruments owned by unconsolidated entities, which are excluded from the tables above.

Interest Rate Swaps and Caps

We are exposed to the impact of interest rate changes primarily through our borrowing activities. To limit this exposure, we attempt to obtain mortgage financing on a long-term, fixed-rate basis. However, from time to time, we or our investment partners obtain variable-rate non-recourse mortgage loans and, as a result, may enter into interest rate swap agreements or interest rate cap agreements with counterparties. Interest rate swaps, which effectively convert the variable-rate debt service obligations of the loan to a fixed rate, are agreements in which one party exchanges a stream of interest payments for a counterparty's stream of cash flow over a specific period. The notional, or face, amount on which the swaps are based is not exchanged. Interest rate caps limit the effective borrowing rate of variable-rate debt obligations while allowing participants to share in downward shifts in interest rates. Our objective in using these derivatives is to limit our exposure to interest rate movements.

The interest rate swaps and caps that we had outstanding on our consolidated subsidiaries at March 31, 2013 are summarized as follows (currency in thousands):

		Notional		Cap	Effective	Effective	Expiration	Fair Value at
Description	Type	Amount		Rate	Interest Rate	Date	Date	March 31, 2013
1-Month London Interbank Offered Rate (“LIBOR”)	“Pay-fixed” swap	$	3,626	N/A	6.7%	2/2008	2/2018	$	(583)
1-Month LIBOR	“Pay-fixed” swap	$	11,179	N/A	5.6%	3/2008	3/2018		(1,586)
1-Month LIBOR	“Pay-fixed” swap	$	5,947	N/A	6.4%	7/2008	7/2018		(999)
1-Month LIBOR	“Pay-fixed” swap	$	3,803	N/A	6.9%	3/2011	3/2021		(557)
1-Month LIBOR	“Pay-fixed” swap	$	5,664	N/A	5.4%	11/2011	12/2020		(250)
1-Month LIBOR	“Pay-fixed” swap	$	5,846	N/A	4.9%	12/2011	12/2021		(242)
1-Month LIBOR	“Pay-fixed” swap	$	8,710	N/A	5.1%	3/2012	11/2019		(426)
3-Month Euro Interbank Offered Rate (“Euribor”) (a)	Interest rate cap	€	53,083	3.0%	N/A	4/2012	4/2017		48
1-Month LIBOR	“Pay-fixed” swap	$	1,942	N/A	4.6%	5/2012	11/2017		(48)
1-Month LIBOR	“Pay-fixed” swap	$	9,800	N/A	3.3%	6/2012	6/2017		(150)
1-Month LIBOR	“Pay-fixed” swap	$	9,887	N/A	1.6%	9/2012	10/2020		(108)
1-Month LIBOR	“Pay-fixed” swap	$	3,993	N/A	4.9%	2/2013	2/2023		(129)
								$	(5,030)

__________

• Fair value amount is based on the applicable exchange rate at March 31, 2013.

The interest rate swaps and caps that our unconsolidated jointly-owned investments had outstanding at March 31, 2013 were designated as cash flow hedges and are summarized as follows (currency in thousands):

	Ownership						Effective
	Interest at		Notional		Cap		Interest	Effective	Expiration	Fair Value at
Description	March 31, 2013	Type	Amount		Rate	Spread	Rate	Date	Date	March 31, 2013
3-Month LIBOR (a)	25.0%	“Pay-fixed” swap	€	111,838	N/A	N/A	5.0%-5.6%	7/2006-4/2008	10/2015-7/2016	$	(14,512)
3-Month LIBOR	27.3%	Interest rate cap	$	118,374	4%	1.2%	N/A	8/2009	8/2014		-
3-Month Euribor (a)	35.0%	“Pay-fixed” swap	€	15,970	N/A	N/A	0.9%	4/2012	7/2013		(44)
										$	(14,556)

__________

• Fair value amounts are based on the applicable exchange rate at March 31, 2013.

Foreign Currency Contracts

We are exposed to foreign currency exchange rate movements,primarily in the euro and, to a lesser extent, certain other currencies. We manage foreign currency exchange rate movements by generally placing our debt service obligation on an investment in the same currency as the tenant's rental obligation to us. This reduces our overall exposure to the net cash flow from that investment. However, we are subject to foreign currency exchange rate movements to the extent of the difference in the timing and amount of the rental obligation and the debt service. We may also face challenges with repatriating cash from our foreign investments. We may encounter instances where it is difficult to repatriate cash because of jurisdictional restrictions or because repatriating cash may result in current or future tax liabilities. Realized and unrealized gains and losses recognized in earnings related to foreign currency transactions are included in Other income and (expenses) in the consolidated financial statements.

In order to hedge certain of our foreign currency cash flow exposures, we enter into foreign currency forward contracts and collars. A foreign currency forward contract is a commitment to deliver a certain amount of currency at a certain price on a specific date in the future. By entering into forward contracts and holding them to maturity, we are locked into a future currency exchange rate for the term of the contract. A foreign currency collar consists of a written call option and a purchased put option to sell the foreign currency.These instruments lock the range in which the foreign currency exchange rate will fluctuate.

The following table presents the foreign currency derivative contracts we had outstanding and their designations at March 31, 2013 (currency in thousands, except strike price):

	Notional		Strike		Effective	Expiration	Fair Value at
Type	Amount		Price		Date	Date	March 31, 2013
Forward contracts	€	53,550	$	1.28 - 1.30	5/2012	6/2013 - 6/2017	$	(114)
Forward contracts		9,800		1.35	12/2012	9/2017 - 3/2018		365
	€	63,350					$	251

Stock Warrants

We own stock warrants that were generally granted to us by lessees in connection with structuring initial lease transactions. These warrants are defined as derivative instruments because they are readily convertible to cash or provide for net cash settlement upon conversion.

Other

Amounts reported in Other comprehensive (loss) income related to interest rate swaps will be reclassified to interest expense as interest payments are made on our variable-rate debt. Amounts reported in Other comprehensive (loss) income related to foreign currency contracts will be reclassified to Other income and (expenses) when the hedged foreign currency proceeds from foreign operations are repatriated to the U.S. At March 31, 2013, we estimate that an additional $1.4 million will be reclassified as interest expense during the next 12 months related to our interest rate swaps and caps and less than $0.1 million will be reclassified to Other income and (expenses) related to our foreign currency contracts and collars.

We measure our credit exposure on a counterparty basis as the net positive aggregate estimated fair value of our derivatives, net of collateral received, if any. No collateral was received as of March 31, 2013. At March 31, 2013, our total credit exposure was $0.2 million and the maximum exposure to any single counterparty was $0.1 million.

Some of the agreements we have with our derivative counterparties contain certain credit contingent provisions that could result in a declaration of default against us regarding our derivative obligations if we either default or are capable of being declared in default on certain of our indebtedness. At March 31, 2013, we had not been declared in default on any of our derivative obligations. The estimated fair value of our derivatives that were in a net liability position was $5.3million and $7.9million at March 31, 2013 and December 31,2012, respectively, which included accrued interest and any adjustment for nonperformance risk. If we had breached any of these provisions at either March 31, 2013or December 31,2012, we could have been required to settle our obligations under these agreements at their aggregate termination value of $5.8million or $8.5million, respectively.

Portfolio Concentration Risk

Concentrations of credit risk arise when a group of tenants is engaged in similar business activities or is subject to similar economic risks or conditions that could cause them to default on their lease obligations to us. We regularly monitor our portfolio to assess potential concentrations of credit risk. While we believe our portfolio is reasonably well diversified, it does contain concentrations in excess of 10%, based on the percentage of our annualized contractual minimum base rent for the firstquarter of 2013, in certain areas. There were no significant changes to our portfolio concentrations atMarch 31, 2013as compared to December 31, 2012.

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Discontinued Operations (Narratives) (Details) (USD $)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain (loss) on sale of real estate	$ 2,701,000	$ (2,191,000)
Impairment charges	0	485,000
Domestic properties
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Properties sold	4	5
Proceeds from property sold	27,900,000	11,800,000
Gain (loss) on sale of real estate	2,700,000	(2,200,000)
Impairment charges		1,200,000
Gain from lease termination		$ 800,000

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Subsequent Events (Narratives) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		1 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Apr. 30, 2013 Waterloo property
Property sold
Property Sold			5
Gain (loss) on sale of real estate	$ 2,701	$ (2,191)	$ (5,500)

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Equity (Details 3) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Accumulated Other Comprehensive Income (Loss)
Balance - beginning balance	$ (27,043)	$ (27,530)
Other comprehensive income before reclassification	(5,269)	6,807
Amounts reclassified from accumulated other comprehensive loss:
Interest expense	325	238
Other income and (expenses)	(278)	(148)
Net income from equity investments in real estate	7	294
Total	54	384
Net current- period Other comprehensive (loss) income	(5,215)	7,191
Balance - end of period	(32,258)	(20,339)
Gains and Losses on Interest Rate Swaps and Cap
Accumulated Other Comprehensive Income (Loss)
Balance - beginning balance	(10,472)	(4,622)
Other comprehensive income before reclassification	3,134	(1,479)
Amounts reclassified from accumulated other comprehensive loss:
Interest expense	325	238
Other income and (expenses)	(278)	(148)
Net income from equity investments in real estate	7	294
Total	54	384
Net current- period Other comprehensive (loss) income	3,188	(1,095)
Balance - end of period	(7,284)	(5,717)
Unrealized Gains and Losses on Marketable Securities
Accumulated Other Comprehensive Income (Loss)
Balance - beginning balance	(10)	(52)
Other comprehensive income before reclassification	3	(17)
Amounts reclassified from accumulated other comprehensive loss:
Net current- period Other comprehensive (loss) income	3	(17)
Balance - end of period	(7)	(69)
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss)
Balance - beginning balance	(16,561)	(22,856)
Other comprehensive income before reclassification	(8,406)	8,303
Amounts reclassified from accumulated other comprehensive loss:
Net current- period Other comprehensive (loss) income	(8,406)	8,303
Balance - end of period	$ (24,967)	$ (14,553)

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Business and Organization (Narratives) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013 tenant sqft property	Dec. 31, 2012
Business Disclosures Other
Number of real estate properties	494
Area of real estate property	47,000,000
Percentage of general and limited partnership interest	99.985%
Net investments in properties	$ 2,011,451	$ 2,070,380
Business and Organization and Basis of Presentation
Number of tenants	140
Occupancy rate	97.40%
Hotel
Business Disclosures Other
Number of real estate properties	2
Net investments in properties	$ 68,800
WPC
Business Disclosures Other
Percentage of general and limited partnership interest	0.015%

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Risk Management and Use of Derivative Financial Instruments (Details 1) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Derivatives Not Designated as Hedging Instruments
Total derivatives, assets	$ 1,574	$ 1,369
Total derivatives, liability	(5,192)	(7,772)
Foreign currency contracts
Derivatives Designated as Hedging Instruments
Derivative instruments in hedges assets at fair value	365	172
Derivative instruments in hedges liabilities at fair value	(114)	(2,361)
Interest rate cap
Derivatives Designated as Hedging Instruments
Derivative instruments in hedges assets at fair value	48	36
Interest rate swaps
Derivatives Designated as Hedging Instruments
Derivative instruments in hedges liabilities at fair value	(5,078)	(5,411)
Stock warrants
Derivatives Not Designated as Hedging Instruments
Derivative asset not designated as hedging instrument at fair value	$ 1,161	$ 1,161

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Subsequent Events

3 Months Ended

Mar. 31, 2013

Subsequent Events

Subsequent Events

Note14.Subsequent Event

InApril 2013, we entered into an agreement to sell and subsequently sold five properties (“Sold Properties”) to the city of Waterloo, Wisconsin for an amount that was approximately $5.5 million below the properties' aggregate carrying value at March 31, 2013. The determination to sell these properties in April 2013 was in conjunction with a modification to the lease agreement with the tenant at the Sold Properties, which requires that the tenant pay all amounts owed relating to the Sold Properties over the remaining lease term (“Modified Lease Payments”). As a result, the difference between the carrying value and the fair value of the consideration we expect to receive, inclusive of the Modified Lease Payments, is not expected to be material and will be recognized in the second quarter of 2013.

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Finance Receivables (Tables)

3 Months Ended

Mar. 31, 2013

Finance Receivables

Schedule Of Tenant Receivables By Internal Credit Quality Rating

	Number of Tenants at		Net Investments in Direct Financing Leases at
Internal Credit Quality Indicator	March 31, 2013	December 31, 2012	March 31, 2013		December 31, 2012
1	1	1	$	43,124	$	43,213
2	1	2		26,893		35,197
3	12	13		200,083		230,527
4	9	7		183,576		152,902
5	1	1		6,030		5,992
			$	459,706	$	467,831

	Number of Obligors at		Notes Receivable at
Internal Credit Quality Indicator	March 31, 2013	December 31, 2012	March 31, 2013		December 31, 2012
1	-	-	$	-	$	-
2	1	1		9,847		9,836
3	2	2		32,834		33,558
5	-	-		-		-
			$	42,681	$	43,394

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Fair Value Measurements (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Impairment Disclosure
Total impairment charges	$ 9,313	$ 10
Nonrecurring | Level 3
Impairment Disclosure
Fair value disclosure for impairment	8,730	4,200
Total impairment charges	9,313	495
Nonrecurring | Level 3 | Continuing Operations:
Impairment Disclosure
Fair value disclosure for impairment	8,730	0
Total impairment charges	9,313	10
Nonrecurring | Level 3 | Continuing Operations: | Net investments in properties
Impairment Disclosure
Fair value disclosure for impairment	8,730
Total impairment charges	9,313
Nonrecurring | Level 3 | Continuing Operations: | Operating expenses
Impairment Disclosure
Fair value disclosure for impairment	8,730
Total impairment charges	9,313	10
Nonrecurring | Level 3 | Continuing Operations: | Net investments in direct financing lease
Impairment Disclosure
Fair value disclosure for impairment		0
Total impairment charges		10
Nonrecurring | Level 3 | Discontinued Operations:
Impairment Disclosure
Fair value disclosure for impairment		4,200
Total impairment charges		$ 485

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Finance Receivables (Narratives 2) (Details) (B Note Receivable, USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Dec. 31, 2012
Receivable contract details
Receivable with imputed interest, face amount	$ 9.8	$ 9.8
Receivable with imputed interest, due date	Feb. 01, 2015
Original Loan
Receivable contract details
Receivable with imputed interest, effective yield (interest rate)	6.30%

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Statement of Earnings (Unaudited) (Parentheticals) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Income Statement
Cash distributions to advisors	$ 3,614	$ 4,281

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Agreements and Transactions with Related Parties

3 Months Ended

Mar. 31, 2013

Agreements and Transactions with Related Parties

Related Party Transactions

Note3.Agreements and Transactions with Related Parties

Transactions with the Advisor

We have an advisory agreement with the advisor whereby the advisor performs certain services for us under a fee arrangement. On September 28, 2012, following the merger between our advisor and our affiliate, Corporate Property Associates 15 Incorporated, we entered into an amended and restated advisory agreement, which is scheduled to renew annually. As amended, the advisory agreement provides for the allocation ofthe advisor's personnelexpenses on the basis of our trailing four quarters of reported revenues and those of WPC and the otherpublicly-owned, non-listed REITs, which are managed by our advisor under the Corporate Property Associates brand name, and Carey Watermark Investors Incorporated(together, the “Managed REITs”) rather than on an allocation of time charges incurred by the advisor's personnel on behalf of the Managed REITs.The fee structure related to asset management fees, initial acquisition fees, subordinated acquisition fees, and subordinated disposition fees remains unchanged, and the advisor remains entitled to 10% of the available cash of the Operating Partnership(the “Available Cash Distribution”), as described below. We also have certain agreements with affiliates regarding jointly-owned investments. The following tables present a summary of fees we paid and expenses we reimbursed to the advisor in accordance with the advisory agreement (in thousands):

	Three Months Ended March 31,
	2013		2012
Amounts Included in the Consolidated Statements of Income:
Asset management fees	$	4,498	$	4,701
Available Cash Distribution		3,614		4,281
Personnel reimbursements		3,376		1,626
Office rent reimbursements		380		311
	$	11,868	$	10,919
Other Transaction Fees Incurred:
Mortgage refinancing fees	$	313	$	-
	$	313	$	-
	March 31, 2013		December 31, 2012
Unpaid Transaction Fees:
Deferred acquisition fees	$	1,212	$	1,757
Subordinated disposition fees		1,197		1,197
	$	2,409	$	2,954

Asset Management Fees

We pay the advisor asset management fees, which are 0.5% per annum of our average invested assets and are computed as provided for in the advisory agreement. The asset management fees are payable in cash or shares of our common stock at the advisor's option. If the advisor elects to receive all or a portion of its fees in shares, the number of shares issued is determined by dividing the dollar amount of fees by our most recently published net asset value per share (“NAV”) as approved by our board of directors. For2013, the advisor elected to receive its asset management fees in shares of our common stock whereas in2012 the advisor elected to receive 50% of its asset management fees in cash and 50% in shares of our common stock. Asset management fees are included in Property expenses in the consolidated financial statements.

Available Cash Distribution

In connection with the UPREIT Reorganization, WPC REIT Merger Sub Inc., a subsidiary of WPC (the “Special General Partner”), acquired a special membership interest(“Special Member Interest”) of 0.015% in the Operating Partnership entitling it to receive the Available Cash Distribution, which is measured and paid quarterly in either cash or shares of our common stock, at the advisor's election. The Available Cash Distribution is defined as cash generated from operations, excluding capital proceeds, as reduced by operating expenses and debt service, excluding prepayments and balloon payments. The Available Cash Distribution is contractually limited to 0.5% of our assets excluding cash, cash equivalents, and certain short-term investments and non-cash reserves. In the event of a capital transaction such as a sale, exchange, disposition, or refinancing of our net assets, the Special General Partner may also be entitled to receive a distribution in an amountequal to 15% of the excess, if any, of the consideration generated by the capital transaction (net of costs and expenses) after our stockholders have received a return of their invested capital plus a 6% priority return.

Personnel and Office Rent Reimbursements

We reimburse the advisor for various expenses it incurs in the course of providing services to us. We reimburse certain third-party expenses paid by the advisor on our behalf, including property-specific costs, professional fees, office expenses, and business development expenses. In addition, we reimburse the advisor for the allocated costs of personnel and overhead in managing our day-to-day operations, including accounting services, stockholder services, corporate management, and property management and operations. We do not reimburse the advisor for the cost of personnel if these personnel provide services for transactions for which the advisor receives a transaction fee, such as acquisitions, dispositions, and refinancings. Personnel and office rent reimbursements are included in General and administrative expenses in the consolidated financial statements.

The advisor is obligated to reimburse us for the amount by which our operating expenses exceeds the “2%/25% guidelines” (the greater of 2% of average invested assets or 25% of net income) as defined in the advisory agreement for any 12-month period. If in any year our operating expenses exceed the 2%/25% guidelines, the advisor will have an obligation to reimburse us for such excess, subject to certain conditions. If our independent directors find that the excess expenses were justified based on any unusual and nonrecurring factors that they deem sufficient, the advisor may be paid in future years for the full amount or any portion of such excess expenses, but only to the extent that the reimbursement would not cause our operating expenses to exceed this limit in any such year. We will record any reimbursement of operating expenses as a liability until any contingencies are resolved and will record the reimbursement as a reduction of asset management fees at such time that a reimbursement is fixed, determinable, and irrevocable. Our operating expenses have not exceeded the amount that would require the advisor to reimburse us.

Transaction Fees

We pay the advisor acquisition fees for structuring and negotiating investments and related mortgage financing on our behalf. Acquisition fees are 4.5% or less of the aggregate cost of investments acquired and are comprised of a current portion of 2.5%, which is paid at the date the property is purchased, and a deferred portion of 2%, which is payable in equal annual installments each January of the three calendar years following the date on which a property was purchased, subject to satisfying the 6% performance criterion. Interest is accrued on unpaid installments of the deferred portion at 5% per year. Current and deferred acquisition fees are capitalized and included in the cost basis of the assets acquired. Mortgage refinancing fees equal up to 1% of the principal and are capitalized to deferred financing costs and amortized over the life of the new loans.

We also pay fees to the advisor for services provided to us in connection with the disposition of investments. These fees, which are subordinated to the performance criterion and certain other provisions included in the advisory agreement, are deferred and are payable to the advisor only in connection with a liquidity event.

Jointly-Owned Investments and Other Transactions with Affiliates

We share with our affiliates leased office space used for the administration of our operations. Rental, occupancy, and leasehold improvement costs are allocated among us and our affiliates based on our respective gross revenues and are adjusted quarterly.

We own interests ranging from 25% to 90% in jointly-owned investments, with the remaining interests generally held by affiliates. We consolidate certain of these investments and account for the remainder under the equity method of accounting. We also own interests in jointly-controlled tenancy-in-common interests in properties, which we account for under the equity method of accounting.

At March 31, 2013, the advisor owned 37,553,551 shares, or 18.5%, of our common stock, which excluded its ownership in the Special Member Interest.

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Debt (Narratives 2) (Details) (USD $)	1 Months Ended	3 Months Ended	12 Months Ended
	Aug. 31, 2012	Mar. 31, 2013	Dec. 31, 2013	Dec. 31, 2012
Line of Credit Facility
Line of credit		$ 100,000,000		$ 143,000,000
Line of credit facility, current borrowing capacity	320,000,000	225,000,000
Line of credit facility, expiration date			Aug. 01, 2015
Line of credit facility, extension duration option			12 months
Line of credit facility, available to draw		211,500,000
Line of credit facility, interest rate during period	3.25%	2.50%
Amendment fees	$ 1,100,000

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Equity Investments in Real Estate (Tables)

3 Months Ended

Mar. 31, 2013

Equity Method Investments in Real Estate

Schedule of Equity Method Investments

	Ownership Interest	Carrying Value at
Lessee	at March 31, 2013	March 31, 2013		December 31, 2012
True Value Company (a) (b) (c)	50%	$	40,521	$	43,100
The New York Times Company (d) (e)	27%		34,965		34,579
U-Haul Moving Partners, Inc. and Mercury Partners, LP (d) (f)	31%		30,746		30,932
Advanced Micro Devices, Inc. (a) (g) (h)	67%		27,738		28,619
Schuler A.G. (a) (h) (i)	33%		20,777		21,178
Hellweg Die Profi-Baumärkte GmbH & Co. KG (Hellweg 1) (a) (i)	25%		20,440		20,837
The Upper Deck Company (a)	50%		7,981		7,998
Frontier Spinning Mills, Inc. (j)	40%		6,263		6,265
Del Monte Corporation (a) (h)	50%		5,263		5,580
Actebis Peacock GmbH (i) (j)	30%		4,396		4,477
Police Prefecture, French Government (a) (i)	50%		4,373		5,010
TietoEnator Plc (a) (i)	40%		3,879		3,895
Town Sports International Holdings, Inc. (a)	56%		3,014		3,203
Barth Europa Transporte e.K/MSR Technologies GmbH (a) (i)	33%		3,005		3,219
Actuant Corporation (a) (i)	50%		2,600		2,711
OBI A.G. (a) (i) (k)	25%		2,021		1,819
Consolidated Systems, Inc. (a) (h)	40%		1,980		2,004
Thomson Broadcast, Veolia Transport, and Marchal Levage (formerly Thales S.A.) (a) (i)	35%		1,295		1,606
Pohjola Non-life Insurance Company (a) (i)	40%		347		190
Talaria Holdings, LLC (l)	27%		-		453
		$	221,604	$	227,675

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Net Investments in Properties (Narratives) (Details) (USD $)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
Real Estate Investment Property, at Cost
Foreign currency translation adjustments	$ (10,020,000)	$ 10,119,000
Foreign currency exchange rate translation	1.2821		1.3218
Change in euro dollar currency exchange rate percent	(3.00%)
Real Estate
Real Estate Investment Property, at Cost
Foreign currency translation adjustments	$ 17,800,000

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Discontinued Operations

3 Months Ended

Mar. 31, 2013

Discontinued Operations

Disposal Groups Including Discontinued Operations

Note13. Discontinued Operations

From time to time,we decide to sell a property. We may make a decision to dispose of a property when it is vacant as a result of tenants vacating space, tenants electing not to renew their leases, tenant insolvency, or lease rejection in the bankruptcy process. In such cases, we assess whether we can obtain the highest value from the property by selling it, as opposed to re-leasing it. When it is appropriate to do so, upon the evaluation of the disposition of long-lived assets, we classify the property as an asset held for sale on our consolidated balance sheet and the current and prior period results of operations of the property are reclassified as discontinued operations.

The results of operations for properties that are held for sale or have been sold and with which we have no continuing involvement are reflected in the consolidated financial statements as discontinued operations and are summarized as follows (in thousands, net of tax):

		Three Months Ended March 31,
		2013		2012
Revenues		$	537	$	2,114
Expenses			(318)		(4,113)
Gain (loss) on sale of real estate			2,701		(2,191)
Impairment charges			-		(485)
	Income (loss) from discontinued operations	$	2,920	$	(4,675)

2013 — During the three months ended March 31, 2013, we sold four domestic properties for an aggregate of $27.9 million, net of selling costs, and recognized a net gain on the sales totaling $2.7 million, excluding an impairment charge of $1.2 million previously recognized during 2012.

2012 — During the three months endedMarch 31, 2012, we sold five domestic properties for an aggregate of $11.8million, net of selling costs, and recognized a net loss on the sales totaling $2.2 million and lease termination income totaling $0.8 million.

We sold six additional properties during 2012 subsequent to first quarter of 2012. The results of operations for these properties are included in Income (loss) from discontinued operations, net of tax in the consolidated financial statements for the three months ended March 31, 2012.