SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant To Section 13 Or 15(d) of The Securities Exchange Act of 1934
Date of report (Date of earliest event reported): March 11, 2009
CORPORATE PROPERTY ASSOCIATES 16 — GLOBAL INCORPORATED
(Exact Name of Registrant as Specified in Charter)
Maryland
(State or Other Jurisdiction of Incorporation)
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001-32162
(Commission File Number) | | 80-0067704
(IRS Employer Identification No.) |
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50 Rockefeller Plaza, New York, NY
(Address of Principal Executive Offices) | | 10020
(Zip Code) |
Registrant’s telephone number, including area code: (212) 492-1100
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
TABLE OF CONTENTS
Item 8.01 Other Events
The registrant announced today that its estimated net asset value (“NAV”) as of December 31, 2008 has been determined to be $9.80 per share. Factors used to calculate NAV per share include estimates of the fair market value of the registrant’s real estate and mortgage debt, which were provided by a third party. The registrant then adjusts this amount based on certain factors, principally estimated disposition costs (including estimates of expenses, commissions and fees payable to its advisor) and an estimate of the registrant’s net other assets and liabilities as of the same date. The estimate of the registrant’s net other assets and liabilities is based on unaudited preliminary financial results, which may differ from amounts included in the registrant’s audited consolidated financial statements. The estimate produced by this calculation is then rounded to the nearest $.10.
While the registrant believes that its portfolio has benefited from a highly diverse tenant base, long-term leases, increases in 2008 rents due to CPI lease indexing and the paydown of property-specific mortgage debt, as of December 31, 2008 these positive factors were more than offset by the impact of certain negative factors, including a general deterioration in market conditions and an increase in the discount rate used to calculate the present value of the leases.
Starting as of March 2009, the estimated NAV of $9.80 per share will be used for purposes of effectuating redemptions of the registrant's common stock and issuing shares pursuant to the registrant's distribution reinvestment plan.
The determination of the registrant’s estimated NAV involves a number of assumptions and management judgments, including regarding disposition costs and net other assets and liabilities. These assumptions and judgments may prove to be inaccurate. There can be no assurance that a shareholder would realize $9.80 per share if the registrant was to liquidate today.
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.
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| | Corporate Property Associates 16 — Global
Incorporated
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| Date: March 11, 2009 | By: | /s/ Mark J. DeCesaris | |
| | | Mark J. DeCesaris | |
| | | Managing Director and Acting Chief Financial Officer | |
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