##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D. C. 20549
 FORM 10-K
 þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the fiscal year ended December 31, 2010
 or
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to .
 Commission file number: 000-25771
 
 CORPORATE PROPERTY ASSOCIATES 14 INCORPORATED
  Maryland
    
    13-3951476(State or other jurisdiction of incorporation or organization)
    
    (I.R.S. Employer Identification No.)50 Rockefeller PlazaNew York, New York
    
    10020(Address of principal executive offices)
    
    (Zip code)
 Investor Relations (212) 492-8920
(212) 492-1100
 None    Common Stock, Par Value $0.001 Per Share
 o þ
 o þ
 þ o
 o o
 þ
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer þ
    
    Smaller reporting company o(Do not check if a smaller reporting company)
 o þ




---



##### 



TABLE OF CONTENTS
 PART I
    
    
    2Item 1. Business
    
    
    2Item 1A. Risk Factors
    
    
    13Item 1B. Unresolved Staff Comments
    
    
    23Item 2. Properties
    
    
    23Item 3. Legal Proceedings
    
    
    23Item 4. Removed and Reserved
    
    
    23PART II
    
    
    24Item 5. Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases
of Equity Securities
    
    
    24Item 6. Selected Financial Data
    
    
    25Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    26Item 7A. Quantitative and Qualitative Disclosures About Market Risk
    
    
    46Item 8. Financial Statements and Supplementary Data
    
    
    49Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
    
    
    87Item 9A. Controls and Procedures
    
    
    87Item 9B. Other Information
    
    
    87PART III
    
    
    88Item 10. Directors, Executive Officers and Corporate Governance
    
    
    88Item 11. Executive Compensation
    
    
    92Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder
Matters
    
    
    93Item 13. Certain Relationships and Related Transactions, and Director Independence
    
    
    93Item 14. Principal Accountant Fees and Services
    
    
    94PART IV
    
    
    95Item 15. Exhibits, Financial Statement Schedules
    
    
    95SIGNATURES
    
    
    96Exhibit 21.1Exhibit 23.1Exhibit 31.1Exhibit 31.2Exhibit 32
  Forward-Looking Statements
  CPA ® :14 2010 10-K 1




---



##### Table of Contents



Item 1.
    
    Business.
 (a) General Development of Business
 Overview
   
    
    clauses providing for mandated rent increases or periodic rent increases over the term
of the lease tied to increases in the Consumer Price Index (CPI) or other similar index
for the jurisdiction in which the property is located or, when appropriate, increases tied
to the volume of sales at the property;
 
    
    indemnification for environmental and other liabilities;
 
    
    operational or financial covenants of the tenant; and
 
    
    guarantees of lease obligations from parent companies or letters of credit.
  ® ® ® ®
   CPA ® :14 2010 10-K 2




---



##### Table of Contents



Significant Developments during 2010:
 Proposed Merger and Asset Sales ® ® ® ® ®
 ® ® ® ® ® ®
 ® ®
 ® ® ® ® ® ® ® ® ®
 Financing Activity
 Dispositions
 CPA ® :14 2010 10-K 3




---



##### Table of Contents



Impairment Charges
 Net Asset Value
 (b) Financial Information About Segments
  (c) Narrative Description of Business
 Business Objectives and Strategy
 ® ®
   
    
    own a diversified portfolio of triple-net leased real estate;
 
    
    fund distributions to shareholders; and
 
    
    increase our equity in our real estate by making regular principal payments on mortgage
loans for our properties.
  ®
 CPA ® :14 2010 10-K 4




---



##### Table of Contents



Our Portfolio
  Geographic Diversification
  Consolidated Investments
    
    
    Equity Investments in Real Estate (b)Annualized
    
    
    % of Annualized
    
    
    Annualized
    
    
    % of AnnualizedContractual
    
    
    Contractual
    
    
    Contractual
    
    
    ContractualMinimum
    
    
    Minimum
    
    
    Minimum
    
    
    MinimumRegion
    

Base Rent (a)
    
    
    Base Rent
    
    
    Base Rent (a)
    
    
    Base RentUnited StatesEast
    
    $
    39,401
    
    
    
    28
    %
    
    $
    3,179
    
    
    
    7
    %South
    
    
    27,841
    
    
    
    19
    
    
    
    7,982
    
    
    
    18Midwest
    
    
    25,506
    
    
    
    18
    
    
    
    8,374
    
    
    
    19West
    
    
    24,860
    
    
    
    17
    
    
    
    13,161
    
    
    
    30Total U.S.
    
    
    117,608
    
    
    
    82
    
    
    
    32,696
    
    
    
    74InternationalEurope (c)
    
    
    25,323
    
    
    
    18
    
    
    
    11,413
    
    
    
    26Total
    
    $
    142,931
    
    
    
    100
    %
    
    $
    44,109
    
    
    
    100
    %
 
 (a)
    
    Reflects annualized contractual minimum base rent for the fourth quarter of 2010.(b)
    
    Reflects our pro rata share of annualized contractual minimum base rent for the fourth
quarter of 2010 from equity investments in real estate.(c)
    
    Reflects investments in Finland, France, Germany, the Netherlands and the United Kingdom. Property Diversification
  Consolidated Investments
    
    
    Equity Investments in Real Estate (b)Annualized
    
    
    % of Annualized
    
    
    Annualized
    
    
    % of AnnualizedContractual
    
    
    Contractual
    
    
    Contractual
    
    
    ContractualMinimum
    
    
    Minimum
    
    
    Minimum
    
    
    MinimumProperty Type
    
    Base Rent (a)
    
    
    Base Rent
    
    
    Base Rent (a)
    
    
    Base RentIndustrial
    
    $
    44,316
    
    
    
    31
    %
    
    $
    10,248
    
    
    
    23
    %Warehouse/distribution
    
    
    43,399
    
    
    
    31
    
    
    
    8,769
    
    
    
    20Office
    
    
    27,584
    
    
    
    19
    
    
    
    2,472
    
    
    
    6Retail
    
    
    15,744
    
    
    
    11
    
    
    
    12,937
    
    
    
    29Other properties (c)
    
    
    11,888
    
    
    
    8
    
    
    
    9,683
    
    
    
    22Total
    
    $
    142,931
    
    
    
    100
    %
    
    $
    44,109
    
    
    
    100
    %
 
 (a)
    
    Reflects annualized contractual minimum base rent for the fourth quarter of 2010.(b)
    
    Reflects our pro rata share of annualized contractual minimum base rent for the fourth
quarter of 2010 from equity investments in real estate.(c)
    
    Other properties include education, childcare and leisure; movie theaters; sports/fitness;
and storage/trucking facilities; as well as undeveloped land. CPA ® :14 2010 10-K 5




---



##### Table of Contents



Tenant Diversification
  Consolidated Investments
    
    
    Equity Investments in Real Estate (c)Annualized
    
    
    % of Annualized
    
    
    Annualized
    
    
    % of AnnualizedContractual
    
    
    Contractual
    
    
    Contractual
    
    
    ContractualMinimum
    
    
    Minimum
    
    
    Minimum
    
    
    MinimumTenant Industry (a)
    
    Base Rent (b)
    
    
    Base Rent
    
    
    Base Rent (b)
    
    
    Base RentRetail trade
    
    $
    40,704
    
    
    
    29
    %
    
    $
    14,320
    
    
    
    32
    %Electronics
    
    
    17,279
    
    
    
    12
    
    
    
    7,448
    
    
    
    17Transportation  cargo
    
    
    12,231
    
    
    
    9
    
    
    
    
    
    
    
    Automobile
    
    
    9,516
    
    
    
    7
    
    
    
    
    
    
    
    Construction and building
    
    
    9,156
    
    
    
    6
    
    
    
    6,825
    
    
    
    15Leisure, amusement, entertainment
    
    
    9,042
    
    
    
    6
    
    
    
    5,854
    
    
    
    13Business and commercial services
    
    
    8,309
    
    
    
    6
    
    
    
    2,552
    
    
    
    6Beverages, food, and tobacco
    
    
    6,346
    
    
    
    4
    
    
    
    1,764
    
    
    
    4Consumer non-durable goods
    
    
    5,875
    
    
    
    4
    
    
    
    
    
    
    
    Chemicals, plastics, rubber, and glass
    
    
    5,702
    
    
    
    4
    
    
    
    
    
    
    
    Machinery
    
    
    4,532
    
    
    
    3
    
    
    
    
    
    
    
    Healthcare, education and childcare
    
    
    4,495
    
    
    
    3
    
    
    
    
    
    
    
    Media: printing and publishing
    
    
    2,286
    
    
    
    2
    
    
    
    1,597
    
    
    
    4Buildings and real estate
    
    
    
    
    
    
    
    
    
    
    2,437
    
    
    
    6Other (d)
    
    
    7,458
    
    
    
    5
    
    
    
    1,312
    
    
    
    3Total
    
    $
    142,931
    
    
    
    100
    %
    
    $
    44,109
    
    
    
    100
    %
 
 (a)
    
    Based on the Moodys Investors Service, Inc. classification system and information provided
by the tenant.(b)
    
    Reflects annualized contractual minimum base rent for the fourth quarter of 2010.(c)
    
    Reflects our pro rata share of annualized contractual minimum base rent for the fourth
quarter of 2010 from equity investments in real estate.(d)
    
    Other includes annualized contractual minimum base rent from tenants in our consolidated
investments in the following industries: consumer and durable goods (1.4%), aerospace and
defense (1.3%), mining (1.3%), forest products and paper (1.0%), and banking (less than 1%).
For our equity investments in real estate, Other consists of annualized contractual minimum
base rent from tenants in personal transportation (3.0%). CPA ® :14 2010 10-K 6




---



##### Table of Contents



Lease Expirations
  Consolidated Investments
    
    
    Equity Investments in Real Estate (b)Annualized
    
    
    % of Annualized
    
    
    Annualized
    
    
    % of AnnualizedContractual
    
    
    Contractual
    
    
    Contractual
    
    
    ContractualMinimum
    
    
    Minimum
    
    
    Minimum
    
    
    MinimumYear of Lease Expiration
    
    Base Rent (a)
    
    
    Base Rent
    
    
    Base Rent (a)
    
    
    Base Rent2011
    
    $
    4,512
    
    
    
    3
    %
    
    $
    
    
    
    
    
    %2012
    
    
    2,687
    
    
    
    2
    
    
    
    
    
    
    
    2013
    
    
    337
    
    
    
    
    
    
    
    
    
    
    
    2014
    
    
    2,913
    
    
    
    2
    
    
    
    1,312
    
    
    
    32015
    
    
    22,221
    
    
    
    16
    
    
    
    2,552
    
    
    
    62016
    
    
    7,295
    
    
    
    5
    
    
    
    1,763
    
    
    
    42017
    
    
    14,509
    
    
    
    10
    
    
    
    
    
    
    
    2018
    
    
    2,850
    
    
    
    2
    
    
    
    8,972
    
    
    
    202019
    
    
    17,582
    
    
    
    12
    
    
    
    
    
    
    
    2020
    
    
    17,391
    
    
    
    12
    
    
    
    1,597
    
    
    
    42021
    
    
    30,443
    
    
    
    21
    
    
    
    
    
    
    
    2022
    
    
    15,444
    
    
    
    11
    
    
    
    8,209
    
    
    
    192023
    
    
    1,910
    
    
    
    2
    
    
    
    652
    
    
    
    12024
    
    
    2,837
    
    
    
    2
    
    
    
    2,437
    
    
    
    52025
    
    
    
    
    
    
    
    
    
    
    5,202
    
    
    
    122026
    
    
    
    
    
    
    
    
    
    
    11,413
    
    
    
    26Total
    
    $
    142,931
    
    
    
    100
    %
    
    $
    44,109
    
    
    
    100
    %
 
 (a)
    
    Reflects annualized contractual minimum base rent for the fourth quarter of 2010.(b)
    
    Reflects our pro rata share of annualized contractual minimum base rent for the fourth
quarter of 2010 from equity investments in real estate. Asset Management
   CPA ® :14 2010 10-K 7




---



##### Table of Contents



Holding Period
  Financing Strategies
    2011
    
    $
    174,442
    (a) (b) (c)2012
    
    
    117,346
    (b) (c)2013
    
    
    
    (b)2014
    
    
    15,076
    (b)2015
    
    
    13,004
 
 (a)
    
    Of the amount shown, $4.3 million was paid in January 2011 and $11.2 million was paid in
March 2011.(b)
    
    Excludes our pro rata share of mortgage obligations of equity investments in real estate
totaling $9.8 million in 2011, $8.6 million in 2012, $32.4 million in 2013 and $16.7 million
in 2014. In February 2011, a venture repaid a mortgage loan due in 2011, of which our share of
the payment was $4.9 million.(c)
    
    Inclusive of amounts attributable to noncontrolling interests totaling $13.2 million in 2011
and $2.5 million in 2012. .
 Investment Strategies
  CPA ® :14 2010 10-K 8




---



##### Table of Contents



Tenant/Borrower Evaluation
 Properties Important to Tenant/Borrower Operations
 Diversification
 Lease Terms
 Collateral Evaluation
 CPA ® :14 2010 10-K 9




---



##### Table of Contents



Transaction Provisions to Enhance and Protect Value
 Other Equity Enhancements
 Investment Decisions ® ® ® ® ® ®
  
    
    Nathaniel S. Coolidge,Chairman  Former senior vice president and head of the bond
and corporate finance department of John Hancock Mutual Life Insurance (currently known as
John Hancock Life Insurance Company). Mr. Coolidges responsibilities included overseeing
its entire portfolio of fixed income investments.
 
    
    Axel K.A. Hansing Currently serving as a senior partner at Coller Capital, Ltd., a
global leader in the private equity secondary market, and responsible for investment
activity in parts of Europe, Turkey and South Africa.
 
    
    Frank J. Hoenemeyer Former vice chairman and chief investment officer of the
Prudential Insurance Company of America. As chief investment officer, he was responsible
for all of Prudential Insurance Company of Americas investments including stocks, bonds
and real estate.
 
    
    Jean Hoysradt Currently serving as the chief investment officer of Mousse Partners
Limited, an investment office based in New York.
 
    
    Dr. Lawrence R. Klein Currently serving as professor emeritus of economics and
finance at the University of Pennsylvania and its Wharton School. Recipient of the 1980
Nobel Prize in economic sciences and former consultant to both the Federal Reserve Board
and the Presidents Council of Economic Advisors.
 
    
    Richard C. Marston Currently the James R.F. Guy professor of economics and finance
at the University of Pennsylvania and its Wharton School.
 CPA ® :14 2010 10-K 10




---



##### Table of Contents




    
    Nick J.M. van Ommen Former chief executive officer of the European Public Real
Estate Association (EPRA), currently serves on the supervisory boards of several companies,
including Babis Vovos International Construction SA, a listed real estate company in
Greece, Intervest Retail and Intervest Offices, listed real estate companies in Belgium,
BUWOG / ESG, a residential leasing and development company in Austria and IMMOFINANZ, a
listed real estate company in Austria.
 
    
    Dr. Karsten von Köller Currently chairman of Lone Star Germany GMBH, a US private
equity firm (Lone Star), Chairman of the Supervisory Board of Düsseldorfer Hypothekenbank
AG, a subsidiary of Lone Star, and Vice Chairman of the Supervisory Boards of IKB Deutsche
Industriebank AG, Corealcredit Bank AG and MHB Bank AG.
 Segments
  Competition
  Environmental Matters
  Transactions with Affiliates
 ®
 ® ® ®
 Types of Investments
  CPA ® :14 2010 10-K 11




---



##### Table of Contents



Other Investments
      (d) Financial Information About Geographic Areas
  (e) Available Information
   CPA ® :14 2010 10-K 12




---



##### Table of Contents



Item 1A.
    
    Risk Factors.
  The recent financial and economic crisis adversely affected our business, and the continued
uncertainty in the global economic environment may adversely affect our business in the future.
   We are subject to the risks of real estate ownership, which could reduce the value of our
properties.
  
    
    changes in the general economic climate;
 
    
    changes in local conditions such as an oversupply of space or reduction in demand for
commercial real estate;
 
    
    changes in interest rates and the availability of financing; and
 
    
    changes in laws and governmental regulations, including those governing real estate
usage, zoning and taxes.
 We may have difficulty selling or re-leasing our properties.
  We have recognized, and may in the future recognize, substantial impairment charges on our
properties.
  CPA ® :14 2010 10-K 13




---



##### Table of Contents



The inability of a tenant in a single tenant property to pay rent will reduce our revenues and
increase our expenses.
  The bankruptcy or insolvency of tenants or borrowers may cause a reduction in revenue.
  
    
    the loss of lease or interest payments;
 
    
    an increase in the costs incurred to carry the property;
 
    
    litigation;
 
    
    a reduction in the value of our shares; and
 
    
    a decrease in distributions to our shareholders.
    ® ®
 CPA ® :14 2010 10-K 14




---



##### Table of Contents



Our distributions may exceed our adjusted cash flow from operating activities and our earnings in
accordance with accounting principles generally accepted in the U.S. (GAAP).
   We do not fully control the management for our properties.
  Our leases may permit tenants to purchase a property at a predetermined price, which could limit
our realization of any appreciation or result in a loss.
  Our success is dependent on the performance of the advisor.
 ®
 CPA ® :14 2010 10-K 15




---



##### Table of Contents



The advisor may be subject to conflicts of interest.
  
    
    the receipt of compensation by the advisor for property purchases, leases, sales and
financing for us, which may cause the advisor to engage in transactions that generate
higher fees, rather than transactions that are more appropriate or beneficial for our
business;
 
    
    agreements between us and the advisor, including agreements regarding compensation,
will not be negotiated on an arms-length basis as would occur if the agreements were with
unaffiliated third parties;
 
    
    acquisitions of single properties or portfolios of properties from affiliates,
including WPC or the CPA® REITs, subject to our investment policies and procedures, which
may take the form of a direct purchase of assets, a merger or another type of transaction;
 
    
    competition with certain affiliates for property acquisitions, which may cause the
advisor and its affiliates to direct properties suitable for us to other related entities;
 
    
    a decision by the advisor (on our behalf) of whether to hold or sell a property could
impact the timing and amount of fees payable to the advisor because it receives asset
management fees and may decide not to sell a property;
 
    
    disposition, incentive and termination fees, which are based on the sale price of
properties or the terms of a liquidity transaction, may cause a conflict between the
advisors desire to sell a property or engage in a liquidity transaction and our interests;
and
 
    
    whether a particular entity has been formed by the advisor specifically for the purpose
of making particular types of investments (in which case it will generally receive
preference in the allocation of those types of investments).
 We delegate our management functions to the advisor.
  The termination or replacement of the advisor could trigger a default or repayment event under our
financing arrangements for some of our assets.
  Our NAV is computed by our advisor relying in part upon information that the advisor provides to a
third- party.
  Valuations that we obtain may include leases in place on the property being appraised, and if the
leases terminate, the value of the property may become significantly lower.
  CPA ® :14 2010 10-K 16




---



##### Table of Contents



We are not required to meet any diversification standards; therefore, our investments may become
subject to concentration of risk.
  Our use of debt to finance investments could adversely affect our cash flow and distributions to
shareholders.
   Failure to qualify as a REIT would adversely affect our operations and ability to make
distributions.
    CPA ® :14 2010 10-K 17




---



##### Table of Contents



Dividends payable by REITs generally do not qualify for reduced U.S. federal income tax rates
because qualifying REITs do not pay U.S. federal income tax on their net income.
  The ability of our board of directors to change our investment policies or revoke our REIT election
without shareholder approval may cause adverse consequences to our shareholders.
   Potential liability for environmental matters could adversely affect our financial condition.
  
    
    responsibility and liability for the cost of investigation, removal or remediation of
hazardous or toxic substances released on or from our property, generally without regard to
our knowledge of, or responsibility for, the presence of these contaminants.
 
    
    liability for claims by third parties based on damages to natural resources or
property, personal injuries, or costs of removal or remediation of hazardous or toxic
substances in, on, or migrating from our property.
 
    
    responsibility for managing asbestos-containing building materials, and third-party
claims for exposure to those materials.
  CPA ® :14 2010 10-K 18




---



##### Table of Contents



International investments involve additional risks.
  
    
    changing governmental rules and policies;
 
    
    enactment of laws relating to the foreign ownership of property and laws relating to
the ability of foreign entities to remove invested capital or profits earned from
activities within the country to the U.S.;
 
    
    expropriation;
 
    
    legal systems under which the ability to enforce contractual rights and remedies may be
more limited than would be the case under U.S. law;
 
    
    the difficulty in conforming obligations in other countries and the burden of complying
with a wide variety of foreign laws, which may be more stringent than U.S. laws, including
tax requirements and land use, zoning and environmental laws, as well as changes in such
laws;
 
    
    adverse market conditions caused by changes in national or local economic or political
conditions;
 
    
    changes in relative interest rates;
 
    
    changes in the availability, cost and terms of mortgage funds resulting from varying
national economic policies;
 
    
    restrictions and/or significant costs in repatriating cash and cash equivalents held in
foreign bank accounts; and
 
    
    changes in real estate and other tax rates and other operating expenses in particular
countries.
    CPA ® :14 2010 10-K 19




---



##### Table of Contents



The returns on our investments in net leased properties may not be as great as returns on equity
investments in real properties during strong real estate markets.
  A potential change in U.S. accounting standards regarding operating leases may make the leasing of
facilities less attractive to our potential domestic tenants, which could reduce overall demand for
our leasing services.
  Our net tangible book value may be adversely affected if we are required to adopt certain fair
value accounting provisions.
   CPA ® :14 2010 10-K 20




---



##### Table of Contents



Your investment return may be reduced if we are required to register as an investment company under
the Investment Company Act.
  
    
    limitations on capital structure;
 
    
    restrictions on specified investments;
 
    
    prohibitions on certain transactions with affiliates; and
 
    
    compliance with reporting, record keeping, voting, proxy disclosure and other rules and
regulations that would significantly increase our operating expenses.
   Failure to complete the Proposed Merger could negatively affect us.
 ® ® ® ®
  
    
    our shareholders will not have had the opportunity to achieve liquidity, and our
directors will review other alternatives for liquidity, which may not occur in the near
term or on terms as attractive as the terms of the Proposed Merger and the Asset Sales;
 
    
    we will have incurred substantial costs related to the Proposed Merger and the related
transactions, such as legal, accounting and financial advisor fees, which may be payable by
us even if the Proposed Merger is not completed; and
    
    we may be required to pay CPA®:16  Globals out-of-pocket expenses up to
$5 million if the Proposed Merger is terminated (i) by CPA®:16  Global due to
our breach of any representation, warranty, covenant or agreement or (ii) by us due to our
board of directors withdrawing its recommendation of the Proposed Merger or the merger
agreement in connection with, or approving or recommending, a superior competing
transaction.
 CPA ® :14 2010 10-K 21




---



##### Table of Contents



There is not, and may never be, an active public trading market for our shares, so it will be
difficult for shareholders to sell shares quickly.
  Maryland law could restrict change in control.
  
    
    any person who beneficially owns 10% or more of the voting power of outstanding shares,
referred to as an interested shareholder;
 
    
    an affiliate who, at any time within the two-year period prior to the date in question,
was the beneficial owner of 10% or more of the voting power of our outstanding shares, also
referred to as an interested shareholder; or
 
    
    an affiliate of an interested shareholder.
   Shareholders equity may be diluted
  CPA ® :14 2010 10-K 22




---



##### Table of Contents



Item 1B.
    
    Unresolved Staff Comments.
  
 Item 2.
    
    Properties.
   
 Item 3.
    
    Legal Proceedings.
  
 Item 4.
    
    Removed and Reserved.
 CPA ® :14 2010 10-K 23




---



##### Table of Contents



Item 5.
    
    Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of
Equity Securities.
 Unlisted Shares and Distributions
   Years ended December 31,2010
    
    
    2009First quarter
    
    $
    0.1996
    
    
    $
    0.1976Second quarter
    
    
    0.2001
    
    
    
    0.1981Third quarter
    
    
    0.2001
    
    
    
    0.1986Fourth quarter
    
    
    0.2001
    
    
    
    0.1991$
    0.7999
    
    
    $
    0.7934
 Unregistered Sales of Equity Securities
  Issuer Purchases of Equity Securities
 Maximum number (orTotal number of shares
    
    
    approximate dollar value)purchased as part of
    
    
    of shares that may yet beTotal number of
    
    
    Average price
    
    
    publicly announced
    
    
    purchased under the2010 Period
    
    shares purchased (a)
    
    
    paid per share
    
    
    plans or programs (a)
    
    
    plans or programs (a)October
    
    
    
    
    
    
    
    
    
    
    N/A
    
    
    
    N/ANovember
    
    
    
    
    
    
    
    
    
    
    N/A
    
    
    
    N/ADecember
    
    
    55,870
    
    
    $
    10.97
    
    
    
    N/A
    
    
    
    N/ATotal
    
    
    55,870
 
 (a)
    
    Represents shares of our common stock purchased pursuant to our redemption plan. The amount
of shares purchasable in any period depends on the availability of funds generated by our
dividend reinvestment and share purchase plan (DRIP) and other factors and is at the
discretion of our board of directors. In September 2009, our board of directors approved the
suspension of our redemption plan, effective for all redemption requests received subsequent
to September 1, 2009, subject to limited exceptions in cases of death or qualifying
disability. The suspension continues as of the date of this Report and will remain in effect
until our board of directors, in its discretion, determines to reinstate the redemption plan.
We cannot give any assurances as to the timing of any further actions by the board with regard
to the plan. The redemption plan will terminate if and when our shares are listed on a
national securities market. CPA ® :14 2010 10-K 24




---



##### Table of Contents



Item 6.
    
    Selected Financial Data.
  Years ended December 31,2010
    
    
    2009
    
    
    2008
    
    
    2007
    
    
    2006Operating Data(a)Total revenues
    
    $
    157,276
    
    
    $
    156,640
    
    
    $
    149,854
    
    
    $
    146,531
    
    
    $
    116,088Income from continuing operations
    
    
    45,781
    
    
    
    32,896
    
    
    
    39,975
    
    
    
    50,029
    
    
    
    51,945Net income (b)
    
    
    69,736
    
    
    
    7,001
    
    
    
    47,201
    
    
    
    65,954
    
    
    
    71,574Less: Net income attributable to noncontrolling
interests
    
    
    (2,819
    )
    
    
    (1,685
    )
    
    
    (2,037
    )
    
    
    (1,564
    )
    
    
    (1,956
    )Net income attributable to CPA®:14 shareholders
    
    
    66,917
    
    
    
    5,316
    
    
    
    45,164
    
    
    
    64,390
    
    
    
    69,618Earnings per share:Income from continuing operations
attributable to CPA®:14 shareholders
    
    
    0.49
    
    
    
    0.36
    
    
    
    0.43
    
    
    
    0.55
    
    
    
    0.71Net income attributable to CPA®:14 shareholders
    
    
    0.77
    
    
    
    0.06
    
    
    
    0.51
    
    
    
    0.73
    
    
    
    0.99Cash distributions declared per share
    
    
    0.7999
    
    
    
    0.7934
    
    
    
    0.7848
    
    
    
    0.7766
    
    
    
    0.7711Balance Sheet DataTotal assets
    
    $
    1,421,981
    
    
    $
    1,551,969
    
    
    $
    1,637,430
    
    
    $
    1,715,148
    
    
    $
    1,675,323Net
investments in real estate (c)
    
    
    1,171,347
    
    
    
    1,310,471
    
    
    
    1,368,111
    
    
    
    1,433,314
    
    
    
    1,491,815Long-term obligations (d)
    
    
    693,499
    
    
    
    812,543
    
    
    
    821,262
    
    
    
    861,902
    
    
    
    826,459Other InformationCash flow from operating activities
    
    $
    109,288
    
    
    $
    87,900
    
    
    $
    110,697
    
    
    $
    89,730
    
    
    $
    102,232Distributions paid
    
    
    69,155
    
    
    
    68,832
    
    
    
    68,851
    
    
    
    68,323
    
    
    
    83,633Payment of mortgage principal (e)
    
    
    154,126
    
    
    
    44,873
    
    
    
    17,383
    
    
    
    16,552
    
    
    
    12,580
 
 (a)
    
    Certain prior year amounts have been reclassified from continuing operations to discontinued
operations.(b)
    
    Results for 2010, 2009 and 2008 reflected impairment charges totaling $15.3 million, $41.0
million and $10.9 million, respectively.(c)
    
    Net investments in real estate consists of net investments in properties, net investment in
direct financing leases, equity investments in real estate, real estate under construction and
assets held for sale, as applicable.(d)
    
    Represents mortgage obligations and deferred acquisition fee installments.(e)
    
    Represents scheduled mortgage principal payments. CPA ® :14 2010 10-K 25




---



##### Table of Contents



Item 7.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations.
  Business Overview
  Financial Highlights
  Years ended December 31,2010
    
    
    2009
    
    
    2008Total revenues
    
    $
    157,276
    
    
    $
    156,640
    
    
    $
    149,854Net income attributable to CPA®:14 shareholders
    
    
    66,917
    
    
    
    5,316
    
    
    
    45,164Cash flow from operating activities
    
    
    109,288
    
    
    
    87,900
    
    
    
    110,697Distributions paid
    
    
    69,155
    
    
    
    68,832
    
    
    
    68,851Supplemental financial measures:Funds from operations  as adjusted (AFFO)
    
    $
    83,773
    
    
    $
    81,805
    
    
    $
    99,178Adjusted cash flow from operating activities
    
    
    101,561
    
    
    
    101,198
    
    
    
    98,795
   ®
    CPA ® :14 2010 10-K 26




---



##### Table of Contents



Current Trends
 General Economic Environment
  Foreign Exchange Rates
  Capital Markets
  Financing Conditions
  Real Estate Sector
  CPA ® :14 2010 10-K 27




---



##### Table of Contents



Net Asset Value
   Tenant Defaults
    Inflation
  Lease Expirations and Occupancy
  CPA ® :14 2010 10-K 28




---



##### Table of Contents



Proposed Accounting Changes
   How We Evaluate Results of Operations
     CPA ® :14 2010 10-K 29




---



##### Table of Contents



Results of Operations
  Years ended December 31,2010
    
    
    2009
    
    
    2008Rental income
    
    $
    133,779
    
    
    $
    136,992
    
    
    $
    128,972Interest income from direct financing leases
    
    
    13,744
    
    
    
    14,356
    
    
    
    15,359$
    147,523
    
    
    $
    151,348
    
    
    $
    144,331
  Years ended December 31,Lessee
    
    2010
    
    
    2009
    
    
    2008Carrefour France, SAS (a) (b)
    
    $
    23,821
    
    
    $
    22,177
    
    
    $
    19,656PETsMART, Inc. (c)
    
    
    8,023
    
    
    
    8,027
    
    
    
    7,940Federal Express Corporation (c)
    
    
    7,121
    
    
    
    7,044
    
    
    
    6,967Dicks Sporting Goods, Inc.
    
    
    6,939
    
    
    
    6,939
    
    
    
    7,076Atrium Companies, Inc.
    
    
    4,945
    
    
    
    5,277
    
    
    
    5,170Katun Corporation (a) (d)
    
    
    4,610
    
    
    
    4,501
    
    
    
    4,497Perkin Elmer, Inc. (a)
    
    
    4,334
    
    
    
    4,552
    
    
    
    4,802Caremark Rx, Inc.
    
    
    4,300
    
    
    
    4,300
    
    
    
    4,300Amylin Pharmaceuticals, Inc. (b) (e)
    
    
    4,027
    
    
    
    3,635
    
    
    
    McLane Company Food Service Inc.
    
    
    3,794
    
    
    
    3,736
    
    
    
    3,706Amerix Corp. (f)
    
    
    3,241
    
    
    
    3,241
    
    
    
    2,980Tower Automotive, Inc. (d)
    
    
    3,229
    
    
    
    3,155
    
    
    
    3,062Rave Reviews Cinemas LLC
    
    
    3,071
    
    
    
    3,037
    
    
    
    2,907Gibson Guitar Corp. (c)
    
    
    2,827
    
    
    
    2,727
    
    
    
    2,658Builders FirstSource, Inc. (c)
    
    
    2,783
    
    
    
    2,719
    
    
    
    2,692Gerber Scientific, Inc.
    
    
    2,678
    
    
    
    2,668
    
    
    
    2,591Waddington North America, Inc.
    
    
    2,660
    
    
    
    2,536
    
    
    
    2,536Collins & Aikman Corporation
    
    
    2,576
    
    
    
    2,564
    
    
    
    2,488Other (a) (c)
    
    
    52,544
    
    
    
    58,513
    
    
    
    58,303$
    147,523
    
    
    $
    151,348
    
    
    $
    144,331
 
 (a)
    
    Amounts are subject to fluctuations in foreign currency exchange rates. The average rate for
the U.S. dollar in relation to the Euro during both 2010 and 2009 strengthened by
approximately 5% in comparison to the respective prior years, resulting in a negative impact
on lease revenues for our Euro-denominated investments in 2010 and 2009. This impact was
mitigated in some cases by CPI or similar rent increases.(b)
    
    Increase in 2010 was due to CPI-based (or equivalent) rent increase and lease restructuring.(c)
    
    These revenues are generated in consolidated ventures, generally with our affiliates, and on
a combined basis include lease revenues applicable to noncontrolling interests totaling $8.5
million, $8.2 million and $6.3 million for the years ended December 31, 2010, 2009 and 2008,
respectively.(d)
    
    Increases in 2010 and 2009 were due to CPI-based (or equivalent) rent increase.(e)
    
    We consolidated this venture effective January 1, 2009. As a result of a refinancing in 2007,
we became the general partner of the venture and therefore have control over the venture.(f)
    
    Increase in 2009 was due to CPI-based (or equivalent) rent increase. CPA ® :14 2010 10-K 30




---



##### Table of Contents



OwnershipInterest at
    
    
    Years ended December 31,Lessee
    
    December 31, 2010
    
    
    2010
    
    
    2009
    
    
    2008Hellweg Die Profi-Baumarkte GmbH & Co. KG (a)
    
    
    32
    %
    
    $
    34,408
    
    
    $
    35,889
    
    
    $
    37,128U-Haul Moving Partners, Inc. and Mercury Partners, L.P. (b)
    
    
    12
    %
    
    
    32,486
    
    
    
    30,589
    
    
    
    28,541True Value Company
    
    
    50
    %
    
    
    14,213
    
    
    
    14,492
    
    
    
    14,698Advanced Micro Devices, Inc.
    
    
    67
    %
    
    
    11,173
    
    
    
    11,175
    
    
    
    11,175Life Time Fitness, Inc.
    
    
    56
    %
    
    
    9,280
    
    
    
    9,272
    
    
    
    9,272CheckFree Holdings, Inc.
    
    
    50
    %
    
    
    5,103
    
    
    
    4,964
    
    
    
    4,830Compucom Systems, Inc. (c)
    
    
    67
    %
    
    
    4,884
    
    
    
    5,020
    
    
    
    4,902Best Buy Co., Inc.
    
    
    37
    %
    
    
    4,577
    
    
    
    4,553
    
    
    
    4,421Del Monte Corporation (d)
    
    
    50
    %
    
    
    3,527
    
    
    
    3,529
    
    
    
    3,241The Upper Deck Company
    
    
    50
    %
    
    
    3,194
    
    
    
    3,194
    
    
    
    3,194Dicks Sporting Goods, Inc.
    
    
    45
    %
    
    
    3,141
    
    
    
    3,141
    
    
    
    3,141ShopRite Supermarkets, Inc. (c)
    
    
    45
    %
    
    
    2,954
    
    
    
    2,484
    
    
    
    2,461Town Sports International Holdings, Inc.
    
    
    56
    %
    
    
    1,119
    
    
    
    1,086
    
    
    
    1,086Amylin Pharmaceuticals, Inc. (e)
    
    
    50
    %
    
    
    
    
    
    
    
    
    
    
    3,343$
    130,059
    
    
    $
    129,388
    
    
    $
    131,433
 
 (a)
    
    In addition to lease revenues, the venture also earned interest income of $24.2 million,
$27.1 million and $28.1 million on a note receivable during 2010, 2009 and 2008, respectively.
Amounts are subject to fluctuations in foreign currency exchange rates. The average rate for
the U.S. dollar in relation to the Euro during both 2010 and 2009 strengthened by
approximately 5% in comparison to the respective prior years, resulting in a negative impact
on lease revenues for our Euro-denominated investments in 2010 and 2009.(b)
    
    Increases in 2010 and 2009 were due to CPI-based (or equivalent) rent increase.(c)
    
    In December 2010, this venture sold its properties and distributed the proceeds to the
venture partners. We have no further economic interest in this venture.(d)
    
    Increase in 2009 was due to CPI-based (or equivalent) rent increase.(e)
    
    We consolidated this venture effective January 1, 2009. As a result of a refinancing in 2007,
we became the general partner of the venture and therefore have control over the venture. Lease Revenues
  2010 vs. 2009
 2009 vs. 2008
 CPA ® :14 2010 10-K 31




---



##### Table of Contents



Other Operating Income
  2010 vs. 2009
 2009 vs. 2008
 Depreciation and Amortization
 2010 vs. 2009
 2009 vs. 2008
 Property Expenses
 2010 vs. 2009
 2009 vs. 2008
 General and Administrative
 2010 vs. 2009
 2009 vs. 2008
 CPA ® :14 2010 10-K 32




---



##### Table of Contents



Impairment Charges
  Lessee
    
    2010
    
    
    2009
    
    
    2008
    
    
    Triggering EventsMetaldyne Company
    
    $
    4,344
    
    
    $
    4,027
    
    
    $
    
    
    
    Potential saleAtrium Companies, Inc.
    
    
    2,209
    
    
    
    
    
    
    
    
    
    
    Property soldNexpak Corporation
    
    
    1,907
    
    
    
    3,500
    
    
    
    
    
    
    Potential saleVarious lessees
    
    
    
    
    
    
    2,566
    
    
    
    110
    
    
    Decline in unguaranteed residual valueImpairment charges included in
operating
expenses from continuing operations
    
    $
    8,460
    
    
    $
    10,093
    
    
    $
    110Nortel Networks Inc.
    
    $
    
    
    
    $
    22,152
    
    
    $
    
    
    
    Tenant filed for bankruptcyBuffets, Inc.
    
    
    
    
    
    
    8,100
    
    
    
    
    
    
    Tenant filed for bankruptcyOrgill, Inc.
    
    
    1,271
    
    
    
    
    
    
    
    
    
    
    Property soldTower Automotive inc.
    
    
    400
    
    
    
    
    
    
    
    1,029
    
    
    Property soldImpairment charges from discontinued
operations
    
    $
    1,671
    
    
    $
    30,252
    
    
    $
    1,029
  Income from Equity Investments in Real Estate
  2010 vs. 2009
 2009 vs. 2008
 Other Income and (Expenses)
  CPA ® :14 2010 10-K 33




---



##### Table of Contents



2010 vs. 2009
 2009 vs. 2008
 Advisor Settlement
 2008
 Interest Expense
 2010 vs. 2009
 2009 vs. 2008
 Discontinued Operations
 2010
 2009
 2008
 Net Income Attributable to CPA ® :14 Shareholders
 2010 vs. 2009 ®
 2009 vs. 2008 ®
 Funds from Operations  as Adjusted (AFFO)
 ®
 2010 vs. 2009
 2009 vs. 2008
 CPA ® :14 2010 10-K 34




---



##### Table of Contents



Financial Condition
 Sources and Uses of Cash during the Year
  Operating Activities
 Investing Activities
 Financing Activities
  CPA ® :14 2010 10-K 35




---



##### Table of Contents



Adjusted Cash Flow from Operating Activities
   Summary of Financing
  December 31,2010
    
    
    2009BalanceFixed rate
    
    $
    573,568
    
    
    $
    684,284Variable rate (a)
    
    
    115,696
    
    
    
    121,379Total
    
    $
    689,264
    
    
    $
    805,663Percent of total debtFixed rate
    
    
    83
    %
    
    
    85
    %Variable rate (a)
    
    
    17
    %
    
    
    15
    %100
    %
    
    
    100
    %Weighted average interest rate at end of yearFixed rate
    
    
    6.7
    %
    
    
    7.2
    %Variable rate (a)
    
    
    6.0
    %
    
    
    6.2
    %
 
 (a)
    
    Variable-rate debt at December 31, 2010 included (i) $18.1 million that was effectively
converted to fixed-rate debt through interest rate swap derivative instruments and (ii) $80.6
million in mortgage obligations that bore interest at fixed rates but that convert to variable
rates during their term. CPA ® :14 2010 10-K 36




---



##### Table of Contents



Cash Resources
  Cash Requirements
  Expected Impact of Proposed Merger and Asset Sales
  ®
 ®
 CPA ® :14 2010 10-K 37




---



##### Table of Contents



Off-Balance Sheet Arrangements and Contractual Obligations
  Less than
    
    
    
    
    
    
    
    
    
    
    More thanTotal
    
    
    1 Year
    
    
    1-3 Years
    
    
    3-5 Years
    
    
    5 YearsNon-recourse debt  Principal (a)
    
    $
    687,865
    
    
    $
    194,619
    
    
    $
    142,519
    
    
    $
    54,316
    
    
    $
    296,411Deferred acquisition fees  Principal
    
    
    4,235
    
    
    
    1,753
    
    
    
    1,310
    
    
    
    773
    
    
    
    399Interest on borrowings and deferred acquisition fees (b)
    
    
    178,964
    
    
    
    42,711
    
    
    
    47,585
    
    
    
    39,337
    
    
    
    49,331Subordinated disposition fees (c)
    
    
    6,065
    
    
    
    6,065
    
    
    
    
    
    
    
    
    
    
    
    Operating and other lease commitments (d)
    
    
    36,212
    
    
    
    1,663
    
    
    
    2,297
    
    
    
    2,283
    
    
    
    29,969$
    913,341
    
    
    $
    246,811
    
    
    $
    193,711
    
    
    $
    96,709
    
    
    $
    376,110
 
 (a)
    
    Excludes $1.4 million of purchase accounting adjustments in connection with the 2006 Merger,
which is included in Non-recourse debt at December 31, 2010.(b)
    
    Interest on un-hedged variable-rate debt obligations was calculated using the applicable
annual variable interest rates and balances outstanding at December 31, 2010.(c)
    
    Payable to the advisor, subject to meeting contingencies, in connection with the Proposed
Merger. See Current Development in Item 1 above. There can be no assurance that the Proposed
Merger will occur in this time frame, if at all.(d)
    
    Operating and other lease commitments consist primarily of the total minimum rents payable on
the ground leases, property improvement commitments and our share of total minimum rents
payable under an office cost-sharing agreement with certain affiliates for the purpose of
leasing office space used for the administration of real estate entities. Amounts under the
cost-sharing agreement are allocated among the entities based on gross revenues and are
adjusted quarterly. The table above excludes the total minimum rents payable under ground
leases of two ventures in which we own a combined interest of 32%. These obligations total
approximately $32.3 million over the lease terms, which extend through 2091. We account for
these ventures under the equity method of accounting.  Proposed Merger and Asset Sales
 ®
 Equity Investments in Real Estate
  CPA ® :14 2010 10-K 38




---



##### Table of Contents



OwnershipInterest at
    
    
    
    
    
    
    Total ThirdLessee
    
    December 31, 2010
    
    
    Total Assets
    
    
    Party Debt
    
    
    Maturity DateThe Upper Deck Company (a)
    
    
    50
    %
    
    $
    26,845
    
    
    $
    9,817
    
    
    
    2/2011Del Monte Corporation
    
    
    50
    %
    
    
    14,739
    
    
    
    10,092
    
    
    
    8/2011Best Buy Co., Inc.
    
    
    37
    %
    
    
    27,397
    
    
    
    23,889
    
    
    
    2/2012True Value Company
    
    
    50
    %
    
    
    128,636
    
    
    
    67,803
    
    
    
    1/2013 & 2/2013U-Haul Moving Partners, Inc. and Mercury Partners, LP
    
    
    12
    %
    
    
    286,824
    
    
    
    160,191
    
    
    
    5/2014Checkfree Holdings, Inc.
    
    
    50
    %
    
    
    32,696
    
    
    
    29,138
    
    
    
    6/2016Life Time Fitness, Inc.
    
    
    56
    %
    
    
    104,454
    
    
    
    73,834
    
    
    
    12/2016Hellweg Die Profi-Baumarkte GmbH & Co. KG(b)
    
    
    32
    %
    
    
    429,916
    
    
    
    369,323
    
    
    
    4/2017Town Sports International Holdings, Inc.
    
    
    56
    %
    
    
    7,462
    
    
    
    7,609
    
    
    
    5/2017Advanced Micro Devices, Inc. (c)
    
    
    67
    %
    
    
    86,157
    
    
    
    57,166
    
    
    
    1/2019Dicks Sporting Goods, Inc.
    
    
    45
    %
    
    
    27,138
    
    
    
    21,861
    
    
    
    1/2022$
    1,172,264
    
    
    $
    830,723
 
 (a)
    
    In February 2011, this venture repaid its maturing mortgage loan.(b)
    
    Ownership interest represents our combined interest in two ventures. Total assets excludes a
note receivable from an unaffiliated third party. Total third-party debt excludes a related
noncontrolling interest that is redeemable by the unaffiliated third party. The note
receivable and noncontrolling interest each had a carrying value of $21.8 million at December
31, 2010. Dollar amounts shown are based on the exchange rate of the Euro at December 31,
2010.(c)
    
    In August 2010, this venture refinanced its existing non-recourse mortgage loan and
distributed the net proceeds to the venture partners. CPA ® :14 2010 10-K 39




---



##### Table of Contents



Environmental Obligations
  Critical Accounting Estimates
  Classification of Real Estate Leases
  Identification of Tangible and Intangible Assets in Connection with Real Estate Acquisitions
   CPA ® :14 2010 10-K 40




---



##### Table of Contents



Basis of Consolidation
    Impairments
  CPA ® :14 2010 10-K 41




---



##### Table of Contents



Real Estate
  Direct Financing Leases
  Assets Held for Sale
   Equity Investments in Real Estate
  CPA ® :14 2010 10-K 42




---



##### Table of Contents



Marketable Securities
  Provision for Uncollected Amounts from Lessees
  Income Taxes
    Subsequent Event
  CPA ® :14 2010 10-K 43




---



##### Table of Contents



Supplemental Financial Measures
  Funds from Operations  as Adjusted
   CPA ® :14 2010 10-K 44




---



##### Table of Contents



Years ended December 31,2010
    
    
    2009
    
    
    2008Net income attributable to CPA®:14 shareholders
    
    $
    66,917
    
    
    $
    5,316
    
    
    $
    45,164Adjustments:Depreciation and amortization of real property
    
    
    30,594
    
    
    
    35,910
    
    
    
    32,963Loss (gain) on sale of real estate
    
    
    2,486
    
    
    
    (8,611
    )
    
    
    (1,062
    )Proportionate share of adjustments to equity in net income of
partially
owned entities to arrive at FFO:Depreciation and amortization of real property
    
    
    12,200
    
    
    
    12,646
    
    
    
    13,975Gain on sale of real estate
    
    
    (11,605
    )
    
    
    (2
    )
    
    
    Proportionate share of adjustments for noncontrolling interests to
arrive at FFO
    
    
    (2,097
    )
    
    
    (2,865
    )
    
    
    (1,871
    )Total adjustments
    
    
    31,578
    
    
    
    37,078
    
    
    
    44,005FFO  as defined by NAREIT
    
    
    98,495
    
    
    
    42,394
    
    
    
    89,169Adjustments:Gain on extinguishment of debt
    
    
    (10,573
    )
    
    
    
    
    
    
    Gain on deconsolidation of a subsidiary
    
    
    (12,870
    )
    
    
    
    
    
    
    Other depreciation, amortization and non-cash charges
    
    
    (119
    )
    
    
    80
    
    
    
    (27
    )Straight-line and other rent adjustments
    
    
    (6,545
    )
    
    
    (1,810
    )
    
    
    (1,225
    )Impairment charges
    
    
    10,131
    
    
    
    40,345
    
    
    
    1,139Proportionate share of adjustments to equity in net income of
partially owned entities to arrive at AFFO:Other depreciation, amortization and other non-cash charges
    
    
    271
    
    
    
    362
    
    
    
    1,100Straight-line and other rent adjustments
    
    
    (84
    )
    
    
    (450
    )
    
    
    (829
    )Impairment charges
    
    
    4,736
    
    
    
    671
    
    
    
    9,820Proportionate share of adjustments for noncontrolling interests
to arrive at AFFO
    
    
    331
    
    
    
    213
    
    
    
    31Total adjustments
    
    
    (14,722
    )
    
    
    39,411
    
    
    
    10,009AFFO
    
    $
    83,773
    
    
    $
    81,805
    
    
    $
    99,178
 Adjusted Cash Flow from Operating Activities
   CPA ® :14 2010 10-K 45




---



##### Table of Contents



Years ended December 31,2010
    
    
    2009
    
    
    2008Cash flow provided by operating activities
    
    $
    109,288
    
    
    $
    87,900
    
    
    $
    110,697Adjustments:Distributions received from equity investments in real estate in excess of
equity income, net
    
    
    (3,473
    )
    
    
    9,880
    
    
    
    7,959Distributions paid to noncontrolling interests, net
    
    
    (3,702
    )
    
    
    (2,277
    )
    
    
    (3,522
    )Changes in
working capital(a)
    
    
    (552
    )
    
    
    5,695
    
    
    
    (5,471
    )Advisor settlement
    
    
    
    
    
    
    
    
    
    
    (10,868
    )Adjusted cash flow from operating activities
    
    $
    101,561
    
    
    $
    101,198
    
    
    $
    98,795Distributions declared (weighted average share basis)
    
    $
    69,397
    
    
    $
    69,088
    
    
    $
    69,200
 
 (a)
    
    In 2009, an adjustment to exclude the impact of escrow funds
was introduced to our adjusted cash flow from operating activities
supplemental measure as more often than not these funds are released
to the lender.  
 Item 7A.
    
    Quantitative and Qualitative Disclosures About Market Risk
 Market Risks
   Interest Rate Risk
   ®
 CPA ® :14 2010 10-K 46




---



##### Table of Contents



2011
    
    
    2012
    
    
    2013
    
    
    2014
    
    
    2015
    
    
    Thereafter
    
    
    Total
    
    
    Fair valueFixed rate debt
    
    $
    189,089
    
    
    $
    124,531
    
    
    $
    6,398
    
    
    $
    21,602
    
    
    $
    14,928
    
    
    $
    217,020
    
    
    $
    573,568
    
    
    $
    563,687Variable rate debt
    
    $
    5,530
    
    
    $
    5,572
    
    
    $
    6,018
    
    
    $
    6,466
    
    
    $
    11,320
    
    
    $
    80,790
    
    
    $
    115,696
    
    
    $
    115,012
  Foreign Currency Exchange Rate Risk
  CPA ® :14 2010 10-K 47




---



##### Table of Contents



Lease Revenues(a)
    
    2011
    
    
    2012
    
    
    2013
    
    
    2014
    
    
    2015
    
    
    Thereafter
    
    
    TotalEuro
    
    $
    22,820
    
    
    $
    21,575
    
    
    $
    21,892
    
    
    $
    22,100
    
    
    $
    13,819
    
    
    $
    33,933
    
    
    $
    136,139British pound sterling
    
    
    464
    
    
    
    464
    
    
    
    464
    
    
    
    464
    
    
    
    144
    
    
    
    
    
    
    
    2,000$
    23,284
    
    
    $
    22,039
    
    
    $
    22,356
    
    
    $
    22,564
    
    
    $
    13,963
    
    
    $
    33,933
    
    
    $
    138,139
  Debt Service(a) (b)
    
    2011
    
    
    2012
    
    
    2013
    
    
    2014
    
    
    2015
    
    
    Thereafter
    
    
    TotalEuro
    
    $
    13,799
    
    
    $
    13,550
    
    
    $
    13,558
    
    
    $
    13,652
    
    
    $
    13,552
    
    
    $
    106,788
    
    
    $
    174,899British pound sterling
    
    
    445
    
    
    
    447
    
    
    
    447
    
    
    
    447
    
    
    
    446
    
    
    
    5,734
    
    
    
    7,966$
    14,244
    
    
    $
    13,997
    
    
    $
    14,005
    
    
    $
    14,099
    
    
    $
    13,998
    
    
    $
    112,522
    
    
    $
    182,865
 
 (a)
    
    Based on the applicable exchange rate at December 31, 2010. Contractual rents and debt
obligations are denominated in the functional currency of the country of each property.(b)
    
    Interest on unhedged variable-rate debt obligations was calculated using the applicable
annual interest rates and balances outstanding at December 31, 2010. Other
  CPA ® :14 2010 10-K 48




---



##### Table of Contents



Item 8.
    
    Financial Statements and Supplementary Data.
  Report of Independent Registered Public Accounting Firm
    
    
    50Consolidated Balance Sheets
    
    
    51Consolidated Statements of Income
    
    
    52Consolidated Statements of Comprehensive Income
    
    
    53Consolidated Statements of Equity
    
    
    54Consolidated Statements of Cash Flows
    
    
    55Notes to Consolidated Financial Statements
    
    
    57Schedule III  Real Estate and Accumulated Depreciation
    
    
    83Notes to Schedule III
    
    
    86
  CPA®:14 2010 10-K  49




---



##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
   
 CPA®:14 2010 10-K  50




---



##### Table of Contents



CORPORATE PROPERTY ASSOCIATES 14 INCORPORATED
 
 CONSOLIDATED BALANCE SHEETS
 (in thousands, except share and per share amounts)
 December 31,2010
    
    
    2009AssetsInvestments in real estate:Real estate, at cost
    
    $
    1,161,139
    
    
    $
    1,255,966Accumulated depreciation
    
    
    (221,824
    )
    
    
    (215,967
    )Net investments in properties
    
    
    939,315
    
    
    
    1,039,999Net investments in direct financing leases
    
    
    107,352
    
    
    
    112,428Assets held for sale
    
    
    18,913
    
    
    
    8,651Equity investments in real estate
    
    
    105,767
    
    
    
    149,393Net investments in real estate
    
    
    1,171,347
    
    
    
    1,310,471Cash and cash equivalents
    
    
    124,693
    
    
    
    93,310Intangible assets, net
    
    
    56,912
    
    
    
    63,804Other assets, net
    
    
    69,029
    
    
    
    84,384Total assets
    
    $
    1,421,981
    
    
    $
    1,551,969Liabilities and EquityLiabilities:Non-recourse debt
    
    $
    689,264
    
    
    $
    805,663Accounts payable, accrued expenses and other liabilities
    
    
    14,048
    
    
    
    19,975Prepaid and deferred rental income and security deposits
    
    
    26,764
    
    
    
    28,108Due to affiliates
    
    
    13,183
    
    
    
    16,380Distributions payable
    
    
    17,463
    
    
    
    17,143Total liabilities
    
    
    760,722
    
    
    
    887,269Commitments and contingencies (Note 13)Equity:CPA®:14 shareholders equity:Common stock, $0.001 par value; 120,000,000 shares authorized;
96,404,073 and 95,058,267 shares issued, respectively
    
    
    96
    
    
    
    95Additional paid-in capital
    
    
    949,791
    
    
    
    934,117Distributions in excess of accumulated earnings
    
    
    (192,995
    )
    
    
    (190,437
    )Accumulated other comprehensive income
    
    
    4,515
    
    
    
    8,838761,407
    
    
    
    752,613Less, treasury stock at cost, 9,133,838 and 8,955,254 shares,
respectively
    
    
    (107,413
    )
    
    
    (105,419
    )Total CPA®:14 shareholders equity
    
    
    653,994
    
    
    
    647,194Noncontrolling interests
    
    
    7,265
    
    
    
    17,506Total equity
    
    
    661,259
    
    
    
    664,700Total liabilities and equity
    
    $
    1,421,981
    
    
    $
    1,551,969
  CPA®:14 2010 10-K  51




---



##### Table of Contents



CORPORATE PROPERTY ASSOCIATES 14 INCORPORATED
 
 CONSOLIDATED STATEMENTS OF INCOME
 (in thousands, except share and per share amounts)
 Years ended December 31,2010
    
    
    2009
    
    
    2008RevenuesRental income
    
    $
    133,779
    
    
    $
    136,992
    
    
    $
    128,972Interest income from direct financing leases
    
    
    13,744
    
    
    
    14,356
    
    
    
    15,359Other operating income
    
    
    9,753
    
    
    
    5,292
    
    
    
    5,523157,276
    
    
    
    156,640
    
    
    
    149,854Operating ExpensesDepreciation and amortization
    
    
    (30,118
    )
    
    
    (32,618
    )
    
    
    (29,551
    )Property expenses
    
    
    (31,658
    )
    
    
    (31,710
    )
    
    
    (32,816
    )General and administrative
    
    
    (8,105
    )
    
    
    (6,682
    )
    
    
    (8,279
    )Impairment charges
    
    
    (8,460
    )
    
    
    (10,093
    )
    
    
    (110
    )(78,341
    )
    
    
    (81,103
    )
    
    
    (70,756
    )Other Income and ExpensesIncome from equity investments in real estate
    
    
    20,616
    
    
    
    13,845
    
    
    
    637Other interest income
    
    
    1,738
    
    
    
    1,558
    
    
    
    4,106Other income and (expenses)
    
    
    (1,777
    )
    
    
    1,446
    
    
    
    3,309Gain on sale of investment in direct financing lease and land swap
    
    
    351
    
    
    
    
    
    
    
    538Advisor settlement (Note 14)
    
    
    
    
    
    
    
    
    
    
    10,868Interest expense
    
    
    (50,998
    )
    
    
    (56,211
    )
    
    
    (56,374
    )(30,070
    )
    
    
    (39,362
    )
    
    
    (36,916
    )Income from continuing operations before income taxes
    
    
    48,865
    
    
    
    36,175
    
    
    
    42,182Provision for income taxes
    
    
    (3,084
    )
    
    
    (3,279
    )
    
    
    (2,207
    )Income from continuing operations
    
    
    45,781
    
    
    
    32,896
    
    
    
    39,975Discontinued OperationsIncome (loss) from operations of discontinued properties
    
    
    5,020
    
    
    
    (4,254
    )
    
    
    7,731Gain on deconsolidation of a subsidiary
    
    
    12,870
    
    
    
    
    
    
    
    Gain on extinguishment of debt
    
    
    10,573
    
    
    
    
    
    
    
    (Loss) gain on sale of real estate
    
    
    (2,837
    )
    
    
    8,611
    
    
    
    524Impairment charges
    
    
    (1,671
    )
    
    
    (30,252
    )
    
    
    (1,029
    )Income (loss) from discontinued operations
    
    
    23,955
    
    
    
    (25,895
    )
    
    
    7,226Net Income
    
    
    69,736
    
    
    
    7,001
    
    
    
    47,201Less: Net income attributable to noncontrolling interests
    
    
    (2,819
    )
    
    
    (1,685
    )
    
    
    (2,037
    )Net Income Attributable to CPA®:14 Shareholders
    
    $
    66,917
    
    
    $
    5,316
    
    
    $
    45,164Earnings Per ShareIncome from continuing operations attributable to CPA®:14 shareholders
    
    $
    0.49
    
    
    $
    0.36
    
    
    $
    0.43Income (loss) from discontinued operations attributable to CPA®:14
shareholders
    
    
    0.28
    
    
    
    (0.30
    )
    
    
    0.08Net income attributable to CPA®:14 shareholders
    
    $
    0.77
    
    
    $
    0.06
    
    
    $
    0.51Weighted Average Shares Outstanding
    
    
    86,757,502
    
    
    
    87,078,468
    
    
    
    88,174,907Amounts Attributable to CPA®:14 ShareholdersIncome from continuing operations, net of tax
    
    $
    42,949
    
    
    $
    31,445
    
    
    $
    37,975Income (loss) from discontinued operations, net of tax
    
    
    23,968
    
    
    
    (26,129
    )
    
    
    7,189Net income
    
    $
    66,917
    
    
    $
    5,316
    
    
    $
    45,164
  CPA®:14 2010 10-K  52




---



##### Table of Contents



CORPORATE PROPERTY ASSOCIATES 14 INCORPORATED
 
 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
 (in thousands)
 Years ended December 31,2010
    
    
    2009
    
    
    2008Net Income
    
    $
    69,736
    
    
    $
    7,001
    
    
    $
    47,201Other Comprehensive Income:Foreign currency translation adjustment
    
    
    (4,057
    )
    
    
    823
    
    
    
    (9,006
    )Change in unrealized gain (loss) on marketable securities
    
    
    816
    
    
    
    1,199
    
    
    
    (2,385
    )Change in unrealized (loss) gain on derivative instruments
    
    
    (1,072
    )
    
    
    2,426
    
    
    
    (2,256
    )(4,313
    )
    
    
    4,448
    
    
    
    (13,647
    )Comprehensive income
    
    
    65,423
    
    
    
    11,449
    
    
    
    33,554Amounts Attributable to Noncontrolling Interests:Net income
    
    
    (2,819
    )
    
    
    (1,685
    )
    
    
    (2,037
    )Change in unrealized gain on marketable securities
    
    
    (10
    )
    
    
    (37
    )
    
    
    Comprehensive income attributable to noncontrolling interests
    
    
    (2,829
    )
    
    
    (1,722
    )
    
    
    (2,037
    )Comprehensive Income Attributable to CPA®:14
Shareholders
    
    $
    62,594
    
    
    $
    9,727
    
    
    $
    31,517
  CPA®:14 2010 10-K  53




---



##### Table of Contents



CORPORATE PROPERTY ASSOCIATES 14 INCORPORATED
 
 CONSOLIDATED STATEMENTS OF EQUITY
 For the years ended December 31, 2010, 2009 and 2008
 (in thousands, except share and per share amounts)
 CPA:14 ShareholdersDistributions
    
    
    AccumulatedAdditional
    
    
    in Excess of
    
    
    Other
    
    
    
    
    
    
    TotalCommon
    
    
    Paid-In
    
    
    Accumulated
    
    
    Comprehensive
    
    
    Treasury
    
    
    CPA®:14
    
    
    NoncontrollingShares
    
    
    Stock
    
    
    Capital
    
    
    Earnings
    
    
    Income
    
    
    Stock
    
    
    Shareholders
    
    
    Interests
    
    
    TotalBalance at January 1, 2008
    
    
    87,818,071
    
    
    $
    92
    
    
    $
    894,773
    
    
    $
    (103,207
    )
    
    $
    18,074
    
    
    $
    (46,772
    )
    
    $
    762,960
    
    
    $
    18,033
    
    
    $
    780,993Shares issued $0.001 par, at $14.00  $14.50 per share, net of
offering costs
    
    
    691,750
    
    
    
    1
    
    
    
    9,147
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9,148
    
    
    
    
    
    
    
    9,148Shares, $0.001 par, issued to the advisor at $14.00 - $14.50 per share
    
    
    850,258
    
    
    
    1
    
    
    
    12,149
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    12,150
    
    
    
    
    
    
    
    12,150Distributions declared ($0.7848 per share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (69,050
    )
    
    
    
    
    
    
    
    
    
    
    (69,050
    )
    
    
    
    
    
    
    (69,050
    )Distributions to noncontrolling interests
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3,522
    )
    
    
    (3,522
    )Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    45,164
    
    
    
    
    
    
    
    
    
    
    
    45,164
    
    
    
    2,037
    
    
    
    47,201Other comprehensive loss:Foreign currency translation adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (9,006
    )
    
    
    
    
    
    
    (9,006
    )
    
    
    
    
    
    
    (9,006
    )Change in unrealized loss on marketable securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,385
    )
    
    
    
    
    
    
    (2,385
    )
    
    
    
    
    
    
    (2,385
    )Change in unrealized loss on derivative instrument
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,256
    )
    
    
    
    
    
    
    (2,256
    )
    
    
    
    
    
    
    (2,256
    )Repurchase of shares
    
    
    (1,510,070
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (20,073
    )
    
    
    (20,073
    )
    
    
    
    
    
    
    (20,073
    )Balance at December 31, 2008
    
    
    87,850,009
    
    
    
    94
    
    
    
    916,069
    
    
    
    (127,093
    )
    
    
    4,427
    
    
    
    (66,845
    )
    
    
    726,652
    
    
    
    16,548
    
    
    
    743,200Shares issued $0.001 par, at $13.00 and $14.00 per share, net of
offering costs
    
    
    667,773
    
    
    
    
    
    
    
    8,844
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8,844
    
    
    
    
    
    
    
    8,844Shares, $0.001 par, issued to the advisor at $13.00 per share
    
    
    736,482
    
    
    
    1
    
    
    
    9,204
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9,205
    
    
    
    
    
    
    
    9,205Distributions declared ($0.7934 per share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (68,660
    )
    
    
    
    
    
    
    
    
    
    
    (68,660
    )
    
    
    
    
    
    
    (68,660
    )Distributions to noncontrolling interests
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,543
    )
    
    
    (2,543
    )Consolidation of a venture
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,779
    
    
    
    1,779Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,316
    
    
    
    
    
    
    
    
    
    
    
    5,316
    
    
    
    1,685
    
    
    
    7,001Other comprehensive income:Foreign currency translation adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    823
    
    
    
    
    
    
    
    823
    
    
    
    
    
    
    
    823Change in unrealized gain on marketable securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,162
    
    
    
    
    
    
    
    1,162
    
    
    
    37
    
    
    
    1,199Change in unrealized gain on derivative instrument
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,426
    
    
    
    
    
    
    
    2,426
    
    
    
    
    
    
    
    2,426Repurchase of shares
    
    
    (3,151,251
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (38,574
    )
    
    
    (38,574
    )
    
    
    
    
    
    
    (38,574
    )Balance at December 31, 2009
    
    
    86,103,013
    
    
    
    95
    
    
    
    934,117
    
    
    
    (190,437
    )
    
    
    8,838
    
    
    
    (105,419
    )
    
    
    647,194
    
    
    
    17,506
    
    
    
    664,700Shares issued $0.001 par, at $11.80 and $13.00 per share, net of
offering costs
    
    
    648,044
    
    
    
    
    
    
    
    7,411
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7,411
    
    
    
    
    
    
    
    7,411Shares, $0.001 par, issued to the advisor at $11.80 per share
    
    
    697,762
    
    
    
    1
    
    
    
    8,263
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8,264
    
    
    
    
    
    
    
    8,264Distributions declared ($0.7999 per share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (69,475
    )
    
    
    
    
    
    
    
    
    
    
    (69,475
    )
    
    
    
    
    
    
    (69,475
    )Distributions to noncontrolling interests
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (15,207
    )
    
    
    (15,207
    )Contributions from noncontrolling interests
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,137
    
    
    
    2,137Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    66,917
    
    
    
    
    
    
    
    
    
    
    
    66,917
    
    
    
    2,819
    
    
    
    69,736Other comprehensive income:Foreign currency translation adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,057
    )
    
    
    
    
    
    
    (4,057
    )
    
    
    
    
    
    
    (4,057
    )Change in unrealized gain on marketable securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    806
    
    
    
    
    
    
    
    806
    
    
    
    10
    
    
    
    816Change in unrealized gain on derivative instrument
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,072
    )
    
    
    
    
    
    
    (1,072
    )
    
    
    
    
    
    
    (1,072
    )Repurchase of shares
    
    
    (178,584
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,994
    )
    
    
    (1,994
    )
    
    
    
    
    
    
    (1,994
    )Balance at December 31, 2010
    
    
    87,270,235
    
    
    $
    96
    
    
    $
    949,791
    
    
    $
    (192,995
    )
    
    $
    4,515
    
    
    $
    (107,413
    )
    
    $
    653,994
    
    
    $
    7,265
    
    
    $
    661,259
  CPA®:14 2010 10-K  54




---



##### Table of Contents



CORPORATE PROPERTY ASSOCIATES 14 INCORPORATED
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 (in thousands)
 Years ended December 31,2010
    
    
    2009
    
    
    2008Cash Flows  Operating ActivitiesNet income
    
    $
    69,736
    
    
    $
    7,001
    
    
    $
    47,201Adjustments to net income:Depreciation and amortization, including intangible assets and deferred financing costs
    
    
    33,346
    
    
    
    35,955
    
    
    
    34,494Straight-line rent and financing lease adjustments
    
    
    (4,501
    )
    
    
    7,932
    
    
    
    1,936Income from equity investments in real estate in excess of distributions received
    
    
    5,395
    
    
    
    1,476
    
    
    
    12,447Issuance of shares to affiliate in satisfaction of fees due
    
    
    8,264
    
    
    
    9,204
    
    
    
    12,150Realized loss (gain) on foreign currency transactions, derivative instruments and other, net
    
    
    286
    
    
    
    (227
    )
    
    
    (4,143
    )Realized loss (gain) on sale of real estate
    
    
    2,486
    
    
    
    (8,611
    )
    
    
    (1,062
    )Realized gain on extinguishment of debt
    
    
    (10,573
    )
    
    
    
    
    
    
    Gain on deconsolidation of a subsidiary
    
    
    (12,870
    )
    
    
    
    
    
    
    Unrealized (gain) loss on foreign currency transactions, derivative instruments and other, net
    
    
    1,491
    
    
    
    (1,219
    )
    
    
    356Reversal of unrealized gain on derivative instruments
    
    
    
    
    
    
    
    
    
    
    708Impairment charges
    
    
    10,131
    
    
    
    40,345
    
    
    
    1,139Change in other operating assets and liabilities, net
    
    
    6,097
    
    
    
    (3,956
    )
    
    
    5,471Net cash provided by operating activities
    
    
    109,288
    
    
    
    87,900
    
    
    
    110,697Cash Flows  Investing ActivitiesEquity distributions received in excess of equity income in real estate
    
    
    42,039
    
    
    
    12,313
    
    
    
    7,921Acquisitions of real estate and other capitalized costs
    
    
    (953
    )
    
    
    (2,914
    )
    
    
    Contributions to equity investments in real estate
    
    
    (4,833
    )
    
    
    (5,344
    )
    
    
    (11,928
    )Purchase of a FDIC guaranteed unsecured note
    
    
    
    
    
    
    (5,000
    )
    
    
    Proceeds from repayment of notes receivable
    
    
    7,000
    
    
    
    
    
    
    
    Proceeds from sale of real estate and securities
    
    
    19,463
    
    
    
    26,247
    
    
    
    15,765Increase in cash due to consolidation of a venture
    
    
    
    
    
    
    309
    
    
    
    Payment of deferred acquisition fees to an affiliate
    
    
    (2,645
    )
    
    
    (3,638
    )
    
    
    (3,846
    )Net cash provided by investing activities
    
    
    60,071
    
    
    
    21,973
    
    
    
    7,912Cash Flows  Financing ActivitiesDistributions paid
    
    
    (69,155
    )
    
    
    (68,832
    )
    
    
    (68,851
    )Distributions
paid to noncontrolling interests, net
    
    
    (13,070
    )
    
    
    (2,543
    )
    
    
    (3,522
    )Proceeds from mortgages
    
    
    112,200
    
    
    
    27,750
    
    
    
    9,740Prepayment of mortgage principal
    
    
    (16,698
    )
    
    
    (22,219
    )
    
    
    (20,510
    )Scheduled payments of mortgage principal
    
    
    (154,126
    )
    
    
    (44,873
    )
    
    
    (17,383
    )Deferred financing costs and mortgage deposits
    
    
    (1,477
    )
    
    
    (962
    )
    
    
    (576
    )Proceeds from stock issuance, net of costs
    
    
    7,411
    
    
    
    8,844
    
    
    
    9,148Purchase of treasury stock
    
    
    (1,994
    )
    
    
    (38,574
    )
    
    
    (20,073
    )Net cash used in financing activities
    
    
    (136,909
    )
    
    
    (141,409
    )
    
    
    (112,027
    )Change in Cash and Cash Equivalents During the YearEffect of exchange rate changes on cash
    
    
    (1,067
    )
    
    
    (900
    )
    
    
    (3,339
    )Net increase (decrease) in cash and cash equivalents
    
    
    31,383
    
    
    
    (32,436
    )
    
    
    3,243Cash and cash equivalents, beginning of year
    
    
    93,310
    
    
    
    125,746
    
    
    
    122,503Cash and cash equivalents, end of year
    
    $
    124,693
    
    
    $
    93,310
    
    
    $
    125,746
  CPA®:14 2010 10-K  55




---



##### Table of Contents



CORPORATE PROPERTY ASSOCIATES 14 INCORPORATED
CONSOLIDATED STATEMENTS OF CASH FLOWS, CONTINUED
 Supplemental cash flow information (in thousands):
 Years ended December 31,2010
    
    
    2009
    
    
    2008Interest paid
    
    $
    53,542
    
    
    $
    58,411
    
    
    $
    61,316Income taxes paid
    
    $
    3,756
    
    
    $
    4,412
    
    
    $
    631
 Supplemental noncash investing activities (in thousands):
  Assets:Net investments in properties
    
    $
    6,627Other assets, net
    
    
    597Total
    
    $
    7,224Liabilities:Non-recourse debt
    
    $
    (19,363
    )Accounts payable, accrued expenses and other liabilities
    
    
    (731
    )Total
    
    $
    (20,094
    )
  CPA®:14 2010 10-K  56




---



##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 Note 1. Business and Organization
  Note 2. Summary of Significant Accounting Policies
 Basis of Consolidation
      CPA®:14 2010 10-K  57




---



##### Table of Contents



Notes to Consolidated Financial Statements
 Out-of-Period Adjustment
   Use of Estimates
  Reclassifications and Revisions
  Purchase Price Allocation
     CPA®:14 2010 10-K  58




---



##### Table of Contents



Notes to Consolidated Financial Statements
 Cash and Cash Equivalents
  Marketable Securities
  Other Assets and Other Liabilities
  Deferred Acquisition Fees Payable to Affiliate
  Treasury Stock
  Real Estate Leased to Others
    Operating leases
 Direct financing leases
 CPA®:14 2010 10-K  59




---



##### Table of Contents



Notes to Consolidated Financial Statements
  Acquisition Costs
  Depreciation
  Impairments
  Real Estate
  Direct Financing Leases
  CPA®:14 2010 10-K  60




---



##### Table of Contents



Notes to Consolidated Financial Statements
 Assets Held for Sale
  Equity Investments in Real Estate
  Marketable Securities
  Assets Held for Sale
    Foreign Currency Translation
  CPA®:14 2010 10-K  61




---



##### Table of Contents



Notes to Consolidated Financial Statements
   Derivative Instruments
  Income Taxes
    Earnings Per Share
  Note 3. Agreements and Transactions with Related Parties
  CPA®:14 2010 10-K  62




---



##### Table of Contents



Notes to Consolidated Financial Statements
 Asset Management and Performance Fees
 1
 Transaction Fees
 ®
  Other Expenses
   CPA®:14 2010 10-K  63




---



##### Table of Contents



Notes to Consolidated Financial Statements
 Joint Ventures and Other Transactions with Affiliates
  ® ®
 ®
 ® ® ® ®
 ® ® ® ® ® ® ® ®
 ® ®
   CPA®:14 2010 10-K  64




---



##### Table of Contents



Notes to Consolidated Financial Statements
   Note 4. Net Investments in Properties
 Net Investments in Properties
  December 31,2010
    
    
    2009Land
    
    $
    214,761
    
    
    $
    228,279Buildings
    
    
    946,378
    
    
    
    1,027,687Less: Accumulated depreciation
    
    
    (221,824
    )
    
    
    (215,967
    )$
    939,315
    
    
    $
    1,039,999
  Scheduled Future Minimum Rents
  Years ending December 31,2011
    
    $
    127,3932012
    
    
    126,1972013
    
    
    126,1742014
    
    
    124,8042015
    
    
    113,441Thereafter through 2036
    
    
    438,860
  Note 5. Finance Receivables
  CPA®:14 2010 10-K  65




---



##### Table of Contents



Notes to Consolidated Financial Statements
 Net Investment in Direct Financing Leases
  December 31,2010
    
    
    2009Minimum lease payments receivable
    
    $
    134,701
    
    
    $
    154,586Unguaranteed residual value
    
    
    104,153
    
    
    
    107,588238,854
    
    
    
    262,174Less: unearned income
    
    
    (131,502
    )
    
    
    (149,746
    )$
    107,352
    
    
    $
    112,428
  Scheduled Future Minimum Rents
  Years ending December 31,2011
    
    $
    13,2642012
    
    
    13,2642013
    
    
    13,2642014
    
    
    13,2642015
    
    
    13,342Thereafter through 2023
    
    
    68,303
  Credit Quality of Finance Receivables
   Net Investments inInternal Credit
    
    
    
    
    
    Direct FinancingQuality Rating
    
    Number of Tenants
    
    
    Leases1
    
    
    1
    
    
    $
    25,5302
    
    
    3
    
    
    
    29,7063
    
    
    3
    
    
    
    34,4214
    
    
    1
    
    
    
    17,6955
    
    
    0
    
    
    
    $
    107,352
 CPA®:14 2010 10-K  66




---



##### Table of Contents



Notes to Consolidated Financial Statements
 Note 6. Equity Investments in Real Estate
   OwnershipInterest at
    
    
    Carrying Value at December 31,Lessee
    
    December 31, 2010
    
    
    2010
    
    
    2009True Value Company
    
    
    50
    %
    
    $
    30,677
    
    
    $
    31,433Advanced Micro Devices, Inc. (a)
    
    
    67
    %
    
    
    15,633
    
    
    
    33,571Hellweg Die Profi-Baumarkte GmbH & Co. KG (b)
    
    
    32
    %
    
    
    13,552
    
    
    
    15,369U-Haul Moving Partners, Inc. and Mercury Partners, LP
    
    
    12
    %
    
    
    12,263
    
    
    
    12,639Life Time Fitness, Inc. and Town Sports International Holdings, Inc.
    
    
    56
    %
    
    
    10,201
    
    
    
    10,343Best Buy Co., Inc. (c)
    
    
    37
    %
    
    
    10,058
    
    
    
    11,183The Upper Deck Company (d)
    
    
    50
    %
    
    
    6,681
    
    
    
    11,491Del Monte Corporation (c)
    
    
    50
    %
    
    
    6,385
    
    
    
    7,233Checkfree Holdings, Inc. (e)
    
    
    50
    %
    
    
    1,159
    
    
    
    1,506ShopRite Supermarkets, Inc. (f)
    
    
    45
    %
    
    
    
    
    
    
    6,719Compucom Systems, Inc. (f)
    
    
    67
    %
    
    
    
    
    
    
    8,638Dicks Sporting Goods, Inc. (g)
    
    
    45
    %
    
    
    (842
    )
    
    
    (732
    )$
    105,767
    
    
    $
    149,393
 
 (a)
    
    In August 2010, this venture refinanced its existing non-recourse mortgage and distributed
the net proceeds to the venture partners. Our share of the distribution was $16.0 million.(b)
    
    The carrying value of this investment is affected by the impact of fluctuations in the
exchange rate of the Euro.(c)
    
    The decrease in carrying value was primarily due to amortization of differences between the
fair value of the investment at the date of acquisition of the venture and the carrying value
of its net assets at that date.(d)
    
    During the third quarter of 2010, we recognized an other-than-temporary impairment charge of
$4.7 million to reduce the carrying value of this venture to its estimated fair value (Note
11).(e)
    
    The decrease in carrying value was primarily due to cash distributions made to us by the
venture.(f)
    
    In December 2010, this venture sold its properties and distributed the proceeds to the
venture partners. We have no further economic interest in this venture.(g)
    
    In 2007, this venture obtained non-recourse mortgage financing of $23.0 million and
distributed the proceeds to the venture partners. Our share of the distribution was $10.3
million, which exceeded our total investment in the venture at that time.  CPA®:14 2010 10-K  67




---



##### Table of Contents



Notes to Consolidated Financial Statements
  December 31,2010
    
    
    2009Assets
    
    $
    1,194,528
    
    
    $
    1,631,111Liabilities
    
    
    (907,586
    )
    
    
    (1,280,887
    )Partners/members equity
    
    $
    286,942
    
    
    $
    350,224
 Years ended December 31,2010
    
    
    2009
    
    
    2008Revenue
    
    $
    154,666
    
    
    $
    156,841
    
    
    $
    159,861Expenses
    
    
    (86,506
    )
    
    
    (86,044
    )
    
    
    (105,934
    )Gain on sale of real estate (a)
    
    
    28,200
    
    
    
    
    
    
    
    12,253Impairment charge (b)
    
    
    (15,196
    )
    
    
    
    
    
    
    Net income
    
    $
    81,164
    
    
    $
    70,797
    
    
    $
    66,180
 
 (a)
    
    In December 2010, the ShopRite Supermarkets venture and the Compucom Systems venture sold
their properties to two unrelated parties and recognized a net gain on sales totaling $28.2
million. During the year ended December 31, 2008, the Starmark Holdings venture sold several
properties and recognized a net gain on sale of $12.3 million. These ventures had no other
assets following the sales.(b)
    
    In December 2010, the Best Buy venture recognized an impairment charge of $15.2 million as a
result of an other-than-temporary decline in estimated residual value of its properties due to
market conditions.  Note 7. Intangibles
  December 31,2010
    
    
    2009Lease intangiblesIn-place lease
    
    $
    36,021
    
    
    $
    37,533Tenant relationship
    
    
    12,294
    
    
    
    12,678Above-market rent
    
    
    37,246
    
    
    
    42,057Less: accumulated amortization
    
    
    (28,649
    )
    
    
    (28,464
    )$
    56,912
    
    
    $
    63,804Below-market rent
    
    $
    (5,855
    )
    
    $
    (5,855
    )Less: accumulated amortization
    
    
    607
    
    
    
    459$
    (5,248
    )
    
    $
    (5,396
    )
 CPA®:14 2010 10-K  68




---



##### Table of Contents



Notes to Consolidated Financial Statements
  Note 8. Interest in Mortgage Loan Securitization
  Fair Value at December 31,Certificate Class
    
    2010
    
    
    2009Class IO
    
    $
    254
    
    
    $
    800Class E
    
    
    12,796
    
    
    
    11,363$
    13,050
    
    
    $
    12,163
 Years ended December 31,2010
    
    
    2009Aggregate unrealized gain
    
    $
    1,615
    
    
    $
    785Cumulative net amortization
    
    $
    1,315
    
    
    $
    1,372
  Fair value as of
    
    
    1% adverse
    
    
    2% adverseDecember 31, 2010
    
    
    change
    
    
    changeFair value of our interest in CCMT
    
    $
    13,050
    
    
    $
    12,856
    
    
    $
    12,666
  Note 9. Fair Value Measurements
  Items Measured at Fair Value on a Recurring Basis
  Money Market Funds and Marketable Securities 
 CPA®:14 2010 10-K  69




---



##### Table of Contents



Notes to Consolidated Financial Statements
 Derivative Liabilities 
 Other Securities and Derivative Assets 
  Fair Value Measurements at December 31, 2010 Using:Quoted Prices inActive Markets for
    
    
    Significant Other
    
    
    UnobservableIdentical Assets
    
    
    Observable Inputs
    
    
    InputsDescription
    
    Total
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Assets:Money market funds
    
    $
    93,836
    
    
    $
    93,836
    
    
    $
    
    
    
    $
    Marketable securities
    
    
    332
    
    
    
    332
    
    
    
    
    
    
    
    Other securities
    
    
    15,075
    
    
    
    
    
    
    
    
    
    
    
    15,075Derivative assets
    
    
    1,626
    
    
    
    
    
    
    
    
    
    
    
    1,626$
    110,869
    
    
    $
    94,168
    
    
    $
    
    
    
    $
    16,701Liabilities:Derivative liabilities
    
    $
    (1,688
    )
    
    $
    
    
    
    $
    (1,688
    )
    
    $
    
 Fair Value Measurements at December 31, 2009 Using:Quoted Prices inActive Markets for
    
    
    Significant Other
    
    
    UnobservableIdentical Assets
    
    
    Observable Inputs
    
    
    InputsDescription
    
    Total
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Assets:Money market funds
    
    $
    84,049
    
    
    $
    84,049
    
    
    $
    
    
    
    $
    Marketable securities
    
    
    342
    
    
    
    342
    
    
    
    
    
    
    
    Other securities
    
    
    15,829
    
    
    
    
    
    
    
    
    
    
    
    15,829Derivative assets
    
    
    1,494
    
    
    
    
    
    
    
    
    
    
    
    1,494$
    101,714
    
    
    $
    84,391
    
    
    $
    
    
    
    $
    17,323Liabilities:Derivative liabilities
    
    $
    (967
    )
    
    $
    
    
    
    $
    (967
    )
    
    $
    
  CPA®:14 2010 10-K  70




---



##### Table of Contents



Notes to Consolidated Financial Statements
 Fair Value Measurements Using SignificantUnobservable Inputs (Level 3 Only)Year ended December 31, 2010
    
    
    Year ended December 31, 2009Other
    
    
    Derivative
    
    
    
    
    
    
    Other
    
    
    DerivativeSecurities
    
    
    Assets
    
    
    Total Assets
    
    
    Securities
    
    
    Assets
    
    
    Total AssetsBeginning balance
    
    $
    15,829
    
    
    $
    1,494
    
    
    $
    17,323
    
    
    $
    13,787
    
    
    $
    1,601
    
    
    $
    15,388Total gains or losses (realized and unrealized):
    
    
    
    
    
    
    
    
    
    
    Included in earnings
    
    
    (1,640
    )(a)
    
    
    286
    
    
    
    (1,354
    )
    
    
    1,254
    
    
    
    98
    
    
    
    1,352Included in other comprehensive income
    
    
    830
    
    
    
    
    
    
    
    830
    
    
    
    1,037
    
    
    
    
    
    
    
    1,037Amortization and accretion
    
    
    56
    
    
    
    
    
    
    
    56
    
    
    
    (249
    )
    
    
    
    
    
    
    (249
    )Settlements
    
    
    
    
    
    
    (154
    )
    
    
    (154
    )
    
    
    
    
    
    
    (205
    )
    
    
    (205
    )Ending balance
    
    $
    15,075
    
    
    $
    1,626
    
    
    $
    16,701
    
    
    $
    15,829
    
    
    $
    1,494
    
    
    $
    17,323The amount of total gains or losses for the period
included in earnings attributable to the change in
unrealized gains or losses relating to assets still
held at the reporting date
    
    $
    (1,640
    )
    
    $
    132
    
    
    $
    (1,508
    )
    
    $
    1,254
    
    
    $
    (66
    )
    
    $
    1,188
 
 (a)
    
    Other securities amount in 2010 included a $1.3 million out-of-period adjustment to correct
an error in 2009 pertaining the valuation of our cost method investment in Rave Reviews (Note
2) and an other-than-temporary impairment charge of $0.4 million recognized to reflect its
decline in fair value at December 31, 2010.   December 31, 2010
    
    
    December 31, 2009Carrying Value
    
    
    Fair Value
    
    
    Carrying Value
    
    
    Fair ValueNon-recourse debt
    
    $
    689,264
    
    
    $
    678,699
    
    
    $
    805,663
    
    
    $
    763,456
  Items Measured at Fair Value on a Non-Recurring Basis
  CPA®:14 2010 10-K  71




---



##### Table of Contents



Notes to Consolidated Financial Statements
  Year ended December 31, 2010
    
    
    Year ended December 31, 2009
    
    
    Year ended December 31, 2008Total
    
    
    Total
    
    
    Total
    
    
    Total
    
    
    Total
    
    
    TotalFair Value
    
    
    Impairment
    
    
    Fair Value
    
    
    Impairment
    
    
    Fair Value
    
    
    ImpairmentMeasurements
    
    
    Charges
    
    
    Measurements
    
    
    Charges
    
    
    Measurements
    
    
    ChargesImpairment Charges From Continuing
Operations:Net investments in properties
    
    $
    18,700
    
    
    $
    6,251
    
    
    $
    13,906
    
    
    $
    7,527
    
    
    $
    
    
    
    $
    Net investments in direct financing
leases
    
    
    3,000
    
    
    
    2,209
    
    
    
    4,101
    
    
    
    2,566
    
    
    
    3,047
    
    
    
    110Equity investments in real estate
    
    
    6,290
    
    
    
    4,736
    
    
    
    11,491
    
    
    
    671
    
    
    
    24,940
    
    
    
    9,820Other securities
    
    
    2,026
    
    
    
    386
    
    
    
    
    
    
    
    
    
    
    
    2,412
    
    
    
    9630,016
    
    
    
    13,582
    
    
    
    29,498
    
    
    
    10,764
    
    
    
    30,399
    
    
    
    10,026Impairment Charges from Discontinued
Operations:Net investments in properties
    
    
    7,543
    
    
    
    1,671
    
    
    
    23,743
    
    
    
    30,252
    
    
    
    5,132
    
    
    
    1,0297,543
    
    
    
    1,671
    
    
    
    23,743
    
    
    
    30,252
    
    
    
    5,132
    
    
    
    1,029Total Impairment Charges
    
    $
    37,559
    
    
    $
    15,253
    
    
    $
    53,241
    
    
    $
    41,016
    
    
    $
    35,531
    
    
    $
    11,055
 Note 10. Risk Management and Use of Derivative Financial Instruments
 Risk Management
  Foreign Currency Exchange
  Use of Derivative Financial Instruments
  CPA®:14 2010 10-K  72




---



##### Table of Contents



Notes to Consolidated Financial Statements
   Asset Derivatives Fair Value
    
    
    Liability Derivatives Fair ValueBalance Sheet
    
    December 31,
    
    
    December 31,Location
    
    2010
    
    
    2009
    
    
    2010
    
    
    2009Derivatives Designated as Hedging
InstrumentsInterest rate swaps
    
    Accounts payable, accrued expenses and other liabilities
    
    $
    
    
    
    $
    
    
    
    $
    (1,688
    )
    
    $
    (967
    )Derivatives Not Designated as Hedging
InstrumentsStock warrants
    
    Other assets, net
    
    
    1,626
    
    
    
    1,494
    
    
    
    
    
    
    
    Total derivatives
    
    
    
    $
    1,626
    
    
    $
    1,494
    
    
    $
    (1,688
    )
    
    $
    (967
    )
  Amount of Gain (Loss) Recognized inOCI on Derivative (Effective Portion)Years ended December 31,Derivatives in Cash Flow Hedging Relationships
    
    2010
    
    
    2009
    
    
    2008Interest rate swaps
    
    $
    (706
    )
    
    $
    2,037
    
    
    $
    (2,256
    )
  Amount of Gain (Loss) Recognized inIncome on DerivativesDerivatives not in Cash
    
    Location of Gain (Loss)
    
    Years ended December 31,Flow Hedging Relationships
    
    Recognized in Income
    
    2010
    
    
    2009
    
    
    2008Stock warrants
    
    Other income and (expenses)
    
    $
    132
    
    
    $
    98
    
    
    $
    (255
    )Interest rate swap (a)
    
    Interest expense
    
    
    
    
    
    
    (791
    )
    
    
    Total
    
    
    
    $
    132
    
    
    $
    (693
    )
    
    $
    (255
    )
 
 (a)
    
    During 2009, we determined that an interest rate swap was no longer designated as a hedging
instrument due to the sale of the property and the payoff of the underlying mortgage loan. As
a result, the change in fair value of the swap was recorded in interest expense.  CPA®:14 2010 10-K  73




---



##### Table of Contents



Notes to Consolidated Financial Statements
 Interest Rate Swaps
   Notional
    
    
    Effective
    
    
    Effective
    
    
    Expiration
    
    
    Fair Value atType
    
    Amount
    
    
    Interest Rate
    
    
    Date
    
    
    Date
    
    
    December 31, 20101-Month LIBOR
    
    Pay-fixed swap
    
    $
    11,816
    
    
    
    5.6
    %
    
    
    3/2008
    
    
    
    3/2018
    
    
    $
    (1,001
    )1-Month LIBOR
    
    Pay-fixed swap
    
    
    6,250
    
    
    
    6.4
    %
    
    
    7/2008
    
    
    
    7/2018
    
    
    
    (687
    )$
    (1,688
    )
 Embedded Credit Derivative
  Stock Warrants
   Other
   CPA®:14 2010 10-K  74




---



##### Table of Contents



Notes to Consolidated Financial Statements
 Portfolio Concentration Risk
   Note 11. Impairment Charges
   Years ended December 31,2010
    
    
    2009
    
    
    2008Net investments in properties
    
    $
    6,251
    
    
    $
    7,527
    
    
    $
    Net investment in direct financing lease
    
    
    2,209
    
    
    
    2,566
    
    
    
    110Total impairment charges included in expenses
    
    
    8,460
    
    
    
    10,093
    
    
    
    110Equity investments in real estate (a)
    
    
    4,736
    
    
    
    671
    
    
    
    9,820Other securities (b)
    
    
    386
    
    
    
    
    
    
    
    96Total impairment charges included in continuing operations
    
    
    13,582
    
    
    
    10,764
    
    
    
    10,026Impairment charges included in discontinued operations
    
    
    1,671
    
    
    
    30,252
    
    
    
    1,029Total impairment charges
    
    $
    15,253
    
    
    $
    41,016
    
    
    $
    11,055
 
 (a)
    
    Impairment charges on our equity investments are included in Income from equity investments
in real estate in our consolidated statements of operations.(b)
    
    Impairment charges on other securities are included in Other income and (expenses) in our
consolidated statements of operations. CPA®:14 2010 10-K  75




---



##### Table of Contents



Notes to Consolidated Financial Statements
 2010 Impairments:
 Metaldyne Company
  Nexpak Corporation
  Atrium Companies, Inc.
  The Upper Deck Company
  Other Securities
  Orgill, Inc.
  Tower Automotive, Inc.
  2009 Impairments:
 Metaldyne Company
  CPA®:14 2010 10-K  76




---



##### Table of Contents



Notes to Consolidated Financial Statements
 Nexpak Corporation
  The Upper Deck Company
  Nortel Networks Inc.
  Buffets, Inc.
  Other
  2008 Impairments:
   CPA®:14 2010 10-K  77




---



##### Table of Contents



Notes to Consolidated Financial Statements
 Note 12. Non-Recourse Debt
   Years ending December 31,
    
    Total Debt2011
    
    $
    194,6192012
    
    
    130,1032013
    
    
    12,4162014
    
    
    28,0682015
    
    
    26,248Thereafter through 2037
    
    
    297,810Total
    
    $
    689,264
 Financing Activity
 2010
 2009
 2008
 Note 13. Commitments and Contingencies
  Proposed Merger and Asset Sales
 ®
 ® ®
 Note 14. Advisor Settlement of SEC Investigation
  CPA®:14 2010 10-K  78




---



##### Table of Contents



Notes to Consolidated Financial Statements
 Note 15. Equity
 Distributions
  Years ended December 31,2010
    
    
    2009
    
    
    2008Ordinary income
    
    $
    0.49
    
    
    $
    0.59
    
    
    $
    0.69Return of capital
    
    
    0.26
    
    
    
    0.11
    
    
    
    Capital gains
    
    
    0.05
    
    
    
    0.09
    
    
    
    0.070.80
    
    
    
    0.79
    
    
    
    0.76Spillover distribution (a)
    
    
    
    
    
    
    
    
    
    
    0.02$
    0.80
    
    
    $
    0.79
    
    
    $
    0.78
 
 (a)
    
    For 2008, this portion of the distribution was paid to shareholders in 2009 as ordinary
income; however, it was taxed in the year the distribution was declared.  Accumulated Other Comprehensive Income
  December 31,2010
    
    
    2009Unrealized gain (loss) on marketable securities
    
    $
    739
    
    
    $
    (67
    )Unrealized (loss) gain on derivative instruments
    
    
    (902
    )
    
    
    170Foreign currency translation adjustment
    
    
    4,678
    
    
    
    8,735Accumulated other comprehensive income
    
    $
    4,515
    
    
    $
    8,838
 Note 16. Income Taxes
    December 31,2010
    
    
    2009Balance at January 1,
    
    $
    136
    
    
    $
    34Additions based on tax positions related to the current year
    
    
    74
    
    
    
    23Additions
for tax positions of prior years
    
    
    46
    
    
    
    90Reductions for expiration of statute of limitations
    
    
    (12
    )
    
    
    (11
    )Balance at December 31,
    
    $
    244
    
    
    $
    136
 CPA®:14 2010 10-K  79




---



##### Table of Contents



Notes to Consolidated Financial Statements
   Note 17. Discontinued Operations
   Years ended December 31,2010
    
    
    2009
    
    
    2008Revenues
    
    $
    9,473
    
    
    $
    15,248
    
    
    $
    18,560Expenses
    
    
    (4,453
    )
    
    
    (19,502
    )
    
    
    (10,829
    )Gain on extinguishment of debt
    
    
    10,573
    
    
    
    
    
    
    
    Gain on deconsolidation of a subsidiary
    
    
    12,870
    
    
    
    
    
    
    
    (Loss) gain on sale of real estate
    
    
    (2,837
    )
    
    
    8,611
    
    
    
    524Impairment charges
    
    
    (1,671
    )
    
    
    (30,252
    )
    
    
    (1,029
    )Income (loss) from discontinued operations
    
    $
    23,955
    
    
    $
    (25,895
    )
    
    $
    7,226
 2010
   CPA®:14 2010 10-K  80




---



##### Table of Contents



Notes to Consolidated Financial Statements
  2009
 2008
 Note 18. Segment Information
  2010
    
    Domestic
    
    
    Foreign (a)
    
    
    Total CompanyRevenues
    
    $
    124,582
    
    
    $
    32,694
    
    
    $
    157,276Total long-lived assets (b)
    
    
    982,801
    
    
    
    188,546
    
    
    
    1,171,347
 2009
    
    Domestic
    
    
    Foreign (a)
    
    
    Total CompanyRevenues
    
    $
    124,786
    
    
    $
    31,854
    
    
    $
    156,640Total long-lived assets (b)
    
    
    1,101,460
    
    
    
    209,011
    
    
    
    1,310,471
 2008
    
    Domestic
    
    
    Foreign (a)
    
    
    Total CompanyRevenues
    
    $
    118,873
    
    
    $
    30,981
    
    
    $
    149,854Total long-lived assets (b)
    
    
    1,144,992
    
    
    
    223,119
    
    
    
    1,368,111
 
 (a)
    
    Consists of operations in the United Kingdom, France, Finland, the Netherlands and Germany.(b)
    
    Consists of real estate, net; net investment in direct financing leases; and equity
investments in real estate. Note 19. Selected Quarterly Financial Data (unaudited)
  Three months endedMarch 31, 2010
    
    
    June 30, 2010
    
    
    September 30, 2010
    
    
    December 31, 2010Revenues (a)
    
    $
    39,712
    
    
    $
    37,187
    
    
    $
    37,934
    
    
    $
    42,443Operating expenses (a)
    
    
    (22,467
    )
    
    
    (17,437
    )
    
    
    (19,956
    )
    
    
    (18,481
    )Net income (b)
    
    
    17,513
    
    
    
    22,020
    
    
    
    3,405
    
    
    
    26,798Less: Net income attributable to
noncontrolling interests
    
    
    (752
    )
    
    
    (601
    )
    
    
    (697
    )
    
    
    (769
    )Net income attributable to
CPA®:14 shareholders
    
    
    16,761
    
    
    
    21,419
    
    
    
    2,708
    
    
    
    26,029Earnings per share attributable to
CPA®:14 shareholders
    
    
    0.19
    
    
    
    0.25
    
    
    
    0.03
    
    
    
    0.30Distributions declared per share
    
    
    0.1996
    
    
    
    0.2001
    
    
    
    0.2001
    
    
    
    0.2001
 CPA®:14 2010 10-K  81




---



##### Table of Contents



Notes to Consolidated Financial Statements
 Three months endedMarch 31, 2009
    
    
    June 30, 2009
    
    
    September 30, 2009
    
    
    December 31, 2009Revenues (a)
    
    $
    36,492
    
    
    $
    37,424
    
    
    $
    41,225
    
    
    $
    41,499Operating expenses (a)
    
    
    (16,674
    )
    
    
    (16,384
    )
    
    
    (23,480
    )
    
    
    (24,565
    )Net income (loss) (b)
    
    
    6,622
    
    
    
    19,212
    
    
    
    (12,039
    )
    
    
    (6,794
    )Less: Net income attributable to
noncontrolling interests
    
    
    (638
    )
    
    
    (628
    )
    
    
    (94
    )
    
    
    (325
    )Net income (loss) attributable to CPA®:14
shareholders
    
    
    5,984
    
    
    
    18,584
    
    
    
    (12,133
    )
    
    
    (7,119
    )Earnings (loss) per share attributable to
CPA®:14 shareholders
    
    
    0.07
    
    
    
    0.21
    
    
    
    (0.14
    )
    
    
    (0.08
    )Distributions declared per share
    
    
    0.1976
    
    
    
    0.1981
    
    
    
    0.1986
    
    
    
    0.1991
 
 (a)
    
    Certain amounts from previous quarters have been retrospectively adjusted as discontinued
operations (Note 17).(b)
    
    Net income for the fourth quarter of 2009 included impairment charges totaling $20.1 million
and $9.8 million, respectively, in connection with several properties and equity investments
in real estate (Note 11). Note 20. Subsequent Event
  CPA®:14 2010 10-K  82




---



##### Table of Contents



SCHEDULE III  REAL ESTATE and ACCUMULATED DEPRECIATION
 at December 31, 2010
 (in thousands)
 Life on whichDepreciationin LatestCosts Capitalized
    
    
    Increase
    
    
    Gross Amount at which Carried
    
    
    
    
    
    
    
    
    
    
    Statement ofInitial Cost to Company
    
    
    Subsequent to
    
    
    (Decrease) in Net
    
    
    at
Close of Period (c)
    
    
    Accumulated
    
    
    Date

    
    Income isDescription
    
    Encumbrances
    
    
    Land
    
    
    Buildings
    
    

Acquisition
(a)
    
    

Investments
(b)
    
    
    Land
    
    
    Buildings
    
    
    Total
    
    

Depreciation
(c)
    
    
    Acquired

    
    ComputedReal Estate Under Operating Leases:Retail store in Torrance, CA
    
    $
    27,630
    
    
    $
    13,060
    
    
    $
    6,934
    
    
    $
    204
    
    
    $
    
    
    
    $
    13,060
    
    
    $
    7,138
    
    
    $
    20,198
    
    
    $
    2,189
    
    
    Jul. 1998
    
    40 yrs.Industrial facility in San Clemente, CA
    
    
    
    
    
    
    2,390
    
    
    
    
    
    
    
    8,958
    
    
    
    53
    
    
    
    2,390
    
    
    
    9,011
    
    
    
    11,401
    
    
    
    2,529
    
    
    Jul. 1998
    
    40 yrs.Industrial facility in Pittsburgh, PA
    
    
    5,777
    
    
    
    620
    
    
    
    6,186
    
    
    
    
    
    
    
    
    
    
    
    620
    
    
    
    6,186
    
    
    
    6,806
    
    
    
    1,862
    
    
    Dec. 1998
    
    40 yrs.Industrial and warehouse facilities in Burbank, CA and Las Vegas, NV
    
    
    6,452
    
    
    
    3,860
    
    
    
    8,263
    
    
    
    
    
    
    
    2
    
    
    
    3,860
    
    
    
    8,265
    
    
    
    12,125
    
    
    
    2,406
    
    
    Mar. 1999, Oct. 1999
    
    40 yrs.Warehouse/distribution facilities in Harrisburg, NC; Atlanta, GA; Cincinnati, OH and Elkwood, VA
    
    
    11,811
    
    
    
    3,930
    
    
    
    10,398
    
    
    
    8,476
    
    
    
    9
    
    
    
    3,945
    
    
    
    18,868
    
    
    
    22,813
    
    
    
    4,661
    
    
    Jun. 1999, Dec. 2001
    
    40 yrs.Warehouse/distribution facilities in Burlington, NJ; Shawnee, KS and Manassas, VA
    
    
    20,003
    
    
    
    3,604
    
    
    
    8,613
    
    
    
    23,709
    
    
    
    
    
    
    
    4,476
    
    
    
    31,450
    
    
    
    35,926
    
    
    
    8,999
    
    
    Aug. 1999
    
    40 yrs.Land in Midlothian, VA
    
    
    2,411
    
    
    
    3,515
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,515
    
    
    
    
    
    
    
    3,515
    
    
    
    
    
    
    Sep. 1999
    
N/AOffice facility in Columbia, MD
    
    
    
    
    
    
    2,623
    
    
    
    20,233
    
    
    
    3,113
    
    
    
    
    
    
    
    2,623
    
    
    
    23,346
    
    
    
    25,969
    
    
    
    6,365
    
    
    Nov. 1999
    
    40 yrs.Industrial facilities in Murrysville, PA and Wylie, TX
    
    
    12,521
    
    
    
    1,596
    
    
    
    23,910
    
    
    
    875
    
    
    
    (214
    )
    
    
    2,059
    
    
    
    24,108
    
    
    
    26,167
    
    
    
    5,704
    
    
    Nov. 1999, Dec. 2001
    
    40 yrs.Sports facilities in Salt Lake City, UT and St. Charles, MO
    
    
    6,217
    
    
    
    2,920
    
    
    
    8,660
    
    
    
    863
    
    
    
    
    
    
    
    2,920
    
    
    
    9,523
    
    
    
    12,443
    
    
    
    2,430
    
    
    Dec. 1999, Dec. 2000
    
    40 yrs.Warehouse/distribution facility in Rock Island, IL
    
    
    
    
    
    
    500
    
    
    
    9,945
    
    
    
    1,887
    
    
    
    
    
    
    
    500
    
    
    
    11,832
    
    
    
    12,332
    
    
    
    2,983
    
    
    Feb. 2000
    
    40 yrs.Industrial facility in North Amityville, NY
    
    
    9,237
    
    
    
    2,932
    
    
    
    16,398
    
    
    
    18
    
    
    
    (4,119
    )
    
    
    1,482
    
    
    
    13,747
    
    
    
    15,229
    
    
    
    3,737
    
    
    Feb. 2000
    
    40 yrs.Warehouse/distribution facilities in Monon, IN; Champlin, MN; Robbinsville, NJ; Radford, VA and North
Salt Lake City, UT
    
    
    14,468
    
    
    
    4,580
    
    
    
    24,844
    
    
    
    114
    
    
    
    
    
    
    
    4,580
    
    
    
    24,958
    
    
    
    29,538
    
    
    
    6,622
    
    
    May. 2000
    
    40 yrs.Warehouse/distribution facility in Lakewood, NJ
    
    
    6,091
    
    
    
    710
    
    
    
    4,531
    
    
    
    3,439
    
    
    
    
    
    
    
    710
    
    
    
    7,970
    
    
    
    8,680
    
    
    
    2,016
    
    
    Jun. 2000
    
    40 yrs.Retail facilities in Kennesaw, GA and Leawood, KS
    
    
    13,095
    
    
    
    6,230
    
    
    
    15,842
    
    
    
    108
    
    
    
    (357
    )
    
    
    6,230
    
    
    
    15,593
    
    
    
    21,823
    
    
    
    4,110
    
    
    Jun. 2000
    
    40 yrs.Land in Scottsdale, AZ
    
    
    12,734
    
    
    
    14,600
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    14,600
    
    
    
    
    
    
    
    14,600
    
    
    
    
    
    
    Sep. 2000
    
N/AIndustrial facility in Albuquerque, NM
    
    
    4,975
    
    
    
    1,490
    
    
    
    4,636
    
    
    
    7
    
    
    
    
    
    
    
    1,490
    
    
    
    4,643
    
    
    
    6,133
    
    
    
    1,195
    
    
    Sep. 2000
    
    40 yrs.Office facility in Houston, TX
    
    
    4,458
    
    
    
    570
    
    
    
    6,760
    
    
    
    
    
    
    
    
    
    
    
    570
    
    
    
    6,760
    
    
    
    7,330
    
    
    
    1,739
    
    
    Sep. 2000
    
    40 yrs.Warehouse/distribution facilities in Valdosta, GA and Johnson City, TN
    
    
    
    
    
    
    650
    
    
    
    16,889
    
    
    
    410
    
    
    
    
    
    
    
    650
    
    
    
    17,299
    
    
    
    17,949
    
    
    
    4,415
    
    
    Oct. 2000
    
    40 yrs.Land in Elk Grove Village, IL
    
    
    2,805
    
    
    
    4,100
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,100
    
    
    
    
    
    
    
    4,100
    
    
    
    
    
    
    Oct. 2000
    
N/AIndustrial facility in Salisbury, NC
    
    
    6,178
    
    
    
    1,370
    
    
    
    2,672
    
    
    
    6,298
    
    
    
    (51
    )
    
    
    1,319
    
    
    
    8,970
    
    
    
    10,289
    
    
    
    2,028
    
    
    Nov. 2000
    
    40 yrs.Office facility in Lafayette, LA
    
    
    2,137
    
    
    
    660
    
    
    
    3,005
    
    
    
    
    
    
    
    
    
    
    
    660
    
    
    
    3,005
    
    
    
    3,665
    
    
    
    754
    
    
    Dec. 2000
    
    40 yrs.Office facility in Collierville, TN
    
    
    54,000
    
    
    
    3,154
    
    
    
    70,646
    
    
    
    12
    
    
    
    
    
    
    
    3,154
    
    
    
    70,658
    
    
    
    73,812
    
    
    
    30,104
    
    
    Dec. 2000
    
    7 - 40 yrs.Multiplex motion picture theater in Port St. Lucie and Pensacola, FL
    
    
    8,306
    
    
    
    3,200
    
    
    
    3,066
    
    
    
    6,800
    
    
    
    (4,112
    )
    
    
    3,685
    
    
    
    5,269
    
    
    
    8,954
    
    
    
    1,254
    
    
    Dec. 2000
    
    40 yrs.Retail and warehouse/distribution facilities in York, PA
    
    
    9,280
    
    
    
    1,974
    
    
    
    10,068
    
    
    
    8,433
    
    
    
    (5,456
    )
    
    
    849
    
    
    
    14,170
    
    
    
    15,019
    
    
    
    2,119
    
    
    Dec. 2000
    
    40 yrs.Office facilities in Lindon, UT
    
    
    
    
    
    
    1,390
    
    
    
    1,123
    
    
    
    8,081
    
    
    
    (428
    )
    
    
    1,851
    
    
    
    8,315
    
    
    
    10,166
    
    
    
    2,810
    
    
    Dec. 2000
    
    40 yrs.Office facility in Houston, TX
    
    
    3,423
    
    
    
    1,025
    
    
    
    4,530
    
    
    
    764
    
    
    
    
    
    
    
    1,025
    
    
    
    5,294
    
    
    
    6,319
    
    
    
    1,220
    
    
    Dec. 2000
    
    40 yrs.Industrial facility in Doncaster, United Kingdom
    
    
    5,078
    
    
    
    
    
    
    
    8,383
    
    
    
    7
    
    
    
    2,116
    
    
    
    
    
    
    
    10,506
    
    
    
    10,506
    
    
    
    890
    
    
    Jan. 2001
    
    21.7 yrs.Industrial and office facilities in Elgin, IL; Bozeman, MT and Nashville, TN
    
    
    10,700
    
    
    
    3,900
    
    
    
    17,937
    
    
    
    166
    
    
    
    (546
    )
    
    
    3,900
    
    
    
    17,557
    
    
    
    21,457
    
    
    
    4,288
    
    
    Mar. 2001
    
    40 yrs.Warehouse/distribution facility in Duluth, GA
    
    
    7,141
    
    
    
    2,167
    
    
    
    11,446
    
    
    
    5
    
    
    
    (5,407
    )
    
    
    1,105
    
    
    
    7,106
    
    
    
    8,211
    
    
    
    2,697
    
    
    Mar. 2001
    
    40 yrs.Industrial facilities in City of Industry, CA; Florence, KY; Chelmsford, MA and Lancaster, TX
    
    
    9,338
    
    
    
    4,398
    
    
    
    13,418
    
    
    
    3,745
    
    
    
    24
    
    
    
    4,643
    
    
    
    16,942
    
    
    
    21,585
    
    
    
    3,924
    
    
    Apr. 2001
    
    7 - 40 yrs.Industrial facility in Mesa, AZ
    
    
    17,250
    
    
    
    4,000
    
    
    
    14,951
    
    
    
    10,147
    
    
    
    (22,597
    )
    
    
    1,618
    
    
    
    4,883
    
    
    
    6,501
    
    
    
    963
    
    
    Jun. 2001, Dec. 2006
    
    34.5 yrs.
 CPA®:14 2010 10-K  83




---



##### Table of Contents



SCHEDULE III  REAL ESTATE AND ACCUMULATED DEPRECIATION   (in thousands)
 Life on whichDepreciationin LatestCosts Capitalized
    
    
    Increase
    
    
    Gross Amount at which Carried
    
    
    
    
    
    
    
    
    
    
    Statement ofInitial Cost to Company
    
    
    Subsequent to
    
    
    (Decrease) in Net
    
    
    at Close
of Period (c)
    
    
    Accumulated
    
    
    Date

    
    Income isDescription
    
    Encumbrances
    
    
    Land
    
    
    Buildings
    
    

Acquisition
(a)
    
    

Investments
(b)
    
    
    Land
    
    
    Buildings
    
    
    Total
    
    

Depreciation
(c)
    
    
    Acquired

    
    ComputedReal Estate Under Operating Leases (Continued):Industrial facilities in South Windsor and Manchester, CT
    
    
    11,265
    
    
    
    1,555
    
    
    
    18,823
    
    
    
    250
    
    
    
    27
    
    
    
    1,555
    
    
    
    19,100
    
    
    
    20,655
    
    
    
    4,505
    
    
    Jul. 2001
    
    40 yrs.Industrial and office facilities in Rome, GA; Niles, IL; Plymouth, MI and Twinsburg, OH
    
    
    14,884
    
    
    
    4,140
    
    
    
    23,822
    
    
    
    1,373
    
    
    
    (8,370
    )
    
    
    2,959
    
    
    
    18,006
    
    
    
    20,965
    
    
    
    5,799
    
    
    Aug. 2001
    
    40 yrs.Industrial facility in Milford, OH
    
    
    
    
    
    
    2,000
    
    
    
    12,869
    
    
    
    
    
    
    
    
    
    
    
    2,000
    
    
    
    12,869
    
    
    
    14,869
    
    
    
    2,989
    
    
    Sep. 2001
    
    40 yrs.Retail facilities in several cities in the following states: Arizona, California, Florida, Illinois, Massachusetts, Maryland, Michigan
and Texas
    
    
    37,404
    
    
    
    17,100
    
    
    
    54,743
    
    
    
    
    
    
    
    (2,747
    )
    
    
    16,100
    
    
    
    52,996
    
    
    
    69,096
    
    
    
    12,090
    
    
    Nov. 2001
    
    40 yrs.Office facility in Turku, Finland
    
    
    43,009
    
    
    
    801
    
    
    
    23,390
    
    
    
    12,291
    
    
    
    10,661
    
    
    
    1,677
    
    
    
    45,466
    
    
    
    47,143
    
    
    
    9,167
    
    
    Dec. 2001, Dec. 2007
    
    25-40 yrs.Educational facilities in Union, NJ; Allentown and Philadelphia, PA and Grand Prairie, TX
    
    
    5,235
    
    
    
    2,486
    
    
    
    7,602
    
    
    
    
    
    
    
    3
    
    
    
    2,486
    
    
    
    7,605
    
    
    
    10,091
    
    
    
    1,719
    
    
    Dec. 2001
    
    40 yrs.Warehouse/distribution, office and industrial facilities in Perris, CA; Eugene, OR; West Jordan, UT and Tacoma, WA
    
    
    6,084
    
    
    
    6,050
    
    
    
    8,198
    
    
    
    
    
    
    
    (1,845
    )
    
    
    4,200
    
    
    
    8,203
    
    
    
    12,403
    
    
    
    1,820
    
    
    Feb. 2002
    
    40 yrs.Warehouse/distribution facilities in Charlotte and Lincolnton, NC and Mauldin, SC
    
    
    8,012
    
    
    
    1,860
    
    
    
    12,852
    
    
    
    
    
    
    
    1
    
    
    
    1,860
    
    
    
    12,853
    
    
    
    14,713
    
    
    
    2,827
    
    
    Mar. 2002
    
    40 yrs.Warehouse/distribution facilities in Boe, Carpiquet, Mans, Vendin Le Vieil, Lieusaint, Lagnieu, Luneville and St. Germain de Puy,
France
    
    
    81,127
    
    
    
    15,724
    
    
    
    75,211
    
    
    
    13,755
    
    
    
    41,780
    
    
    
    24,665
    
    
    
    121,805
    
    
    
    146,470
    
    
    
    26,250
    
    
    Mar. 2002
    
    40 yrs.Warehouse/distribution and office facilities in Davenport, IA and Bloomington, MN
    
    
    17,159
    
    
    
    3,260
    
    
    
    26,009
    
    
    
    
    
    
    
    
    
    
    
    3,260
    
    
    
    26,009
    
    
    
    29,269
    
    
    
    5,500
    
    
    Jul. 2002
    
    40 yrs.Industrial facility in Gorinchem, Netherlands
    
    
    5,872
    
    
    
    2,374
    
    
    
    3,864
    
    
    
    
    
    
    
    2,023
    
    
    
    3,181
    
    
    
    5,080
    
    
    
    8,261
    
    
    
    1,079
    
    
    Jul. 2002Industrial facilities in Kendallville, IN; Clinton Township, MI and Upper Sandusky, OH
    
    
    10,543
    
    
    
    4,390
    
    
    
    30,336
    
    
    
    
    
    
    
    (7,179
    )
    
    
    3,550
    
    
    
    23,997
    
    
    
    27,547
    
    
    
    5,224
    
    
    Aug. 2002
    
    40 yrs.Retail facilities in Fairfax, VA and Lombard, IL
    
    
    11,816
    
    
    
    13,226
    
    
    
    18,248
    
    
    
    
    
    
    
    (1,018
    )
    
    
    13,226
    
    
    
    17,230
    
    
    
    30,456
    
    
    
    2,095
    
    
    Dec. 2006
    
    33.6 yrs.Retail facility in South Tulsa, OK
    
    
    5,000
    
    
    
    1,649
    
    
    
    3,425
    
    
    
    225
    
    
    
    
    
    
    
    1,649
    
    
    
    3,650
    
    
    
    5,299
    
    
    
    469
    
    
    Dec. 2006
    
    30 yrs.Retail and warehouse/distribution facilities in Johnstown and Whitehall, PA
    
    
    5,000
    
    
    
    2,115
    
    
    
    15,945
    
    
    
    
    
    
    
    (609
    )
    
    
    2,115
    
    
    
    15,336
    
    
    
    17,451
    
    
    
    2,066
    
    
    Dec. 2006
    
    30.3 yrs.Warehouse/distribution facility in Dallas, TX
    
    
    6,516
    
    
    
    323
    
    
    
    6,784
    
    
    
    
    
    
    
    
    
    
    
    323
    
    
    
    6,784
    
    
    
    7,107
    
    
    
    820
    
    
    Dec. 2006
    
    30.8 yrs.Industrial facility in Shelburne, VT
    
    
    1,689
    
    
    
    955
    
    
    
    2,919
    
    
    
    
    
    
    
    
    
    
    
    955
    
    
    
    2,919
    
    
    
    3,874
    
    
    
    390
    
    
    Dec. 2006
    
    30.6 yrs.Industrial facilities in Fort Dodge, IN and Oconomowoc, WI
    
    
    6,098
    
    
    
    1,218
    
    
    
    11,879
    
    
    
    2,514
    
    
    
    
    
    
    
    1,218
    
    
    
    14,393
    
    
    
    15,611
    
    
    
    2,263
    
    
    Dec. 2006
    
    23.5 yrs.Industrial facility in Aurora, IL
    
    
    
    
    
    
    2,730
    
    
    
    10,391
    
    
    
    
    
    
    
    
    
    
    
    2,730
    
    
    
    10,391
    
    
    
    13,121
    
    
    
    1,376
    
    
    Dec. 2006
    
    30.8 yrs.Industrial facility in Houston, TX
    
    
    
    
    
    
    2,299
    
    
    
    4,722
    
    
    
    
    
    
    
    
    
    
    
    2,299
    
    
    
    4,722
    
    
    
    7,021
    
    
    
    1,181
    
    
    Dec. 2006
    
    16.3 yrs.Industrial, warehouse/distribution and office facilities in Waterloo, WI
    
    
    
    
    
    
    922
    
    
    
    16,824
    
    
    
    
    
    
    
    (642
    )
    
    
    922
    
    
    
    16,182
    
    
    
    17,104
    
    
    
    3,250
    
    
    Dec. 2006
    
    20.3 yrs.Industrial and warehouse/distribution facilities in Westfield, MA
    
    
    6,361
    
    
    
    1,106
    
    
    
    9,952
    
    
    
    
    
    
    
    
    
    
    
    1,106
    
    
    
    9,952
    
    
    
    11,058
    
    
    
    1,173
    
    
    Dec. 2006
    
    34.7 yrs.Industrial facility in Richmond, MO
    
    
    5,528
    
    
    
    530
    
    
    
    6,505
    
    
    
    
    
    
    
    
    
    
    
    530
    
    
    
    6,505
    
    
    
    7,035
    
    
    
    763
    
    
    Dec. 2006
    
    34.8 yrs.Retail facilities in Bourne, Sandwich and Chelmsford, MA
    
    
    1,379
    
    
    
    1,418
    
    
    
    2,157
    
    
    
    
    
    
    
    
    
    
    
    1,418
    
    
    
    2,157
    
    
    
    3,575
    
    
    
    283
    
    
    Dec. 2006
    
    31.1 yrs.Industrial facility in Carlsbad, CA
    
    
    
    
    
    
    2,618
    
    
    
    4,880
    
    
    
    
    
    
    
    
    
    
    
    2,618
    
    
    
    4,880
    
    
    
    7,498
    
    
    
    646
    
    
    Dec. 2006
    
    30.8 yrs.Fitness and recreational facility in Houston, TX
    
    
    3,652
    
    
    
    1,613
    
    
    
    3,398
    
    
    
    
    
    
    
    
    
    
    
    1,613
    
    
    
    3,398
    
    
    
    5,011
    
    
    
    468
    
    
    Dec. 2006
    
    29.7 yrs.
 CPA®:14 2010 10-K  84




---



##### Table of Contents



SCHEDULE III  REAL ESTATE AND ACCUMULATED DEPRECIATION   (in thousands)
 Life on whichDepreciation inLatestCosts Capitalized
    
    
    Increase
    
    
    Gross Amount at which Carried
    
    
    
    
    
    
    
    
    
    
    Statement ofInitial Cost to Company
    
    
    Subsequent to
    
    
    (Decrease) in Net
    
    
    at Close
of Period (c)
    
    
    Accumulated
    
    
    Date

    
    Income isDescription
    
    Encumbrances
    
    
    Land
    
    
    Buildings
    
    

Acquisition
(a)
    
    

Investments
(b)
    
    
    Land
    
    
    Buildings
    
    
    Total
    
    

Depreciation
(c)
    
    
    Acquired

    
    ComputedReal Estate Under Operating Leases (Continued):Theater in Hickory Creek, TX
    
    
    3,697
    
    
    
    3,138
    
    
    
    6,752
    
    
    
    
    
    
    
    
    
    
    
    3,138
    
    
    
    6,752
    
    
    
    9,890
    
    
    
    811
    
    
    Dec. 2006
    
    34 yrs.Educational facilities in Chandler, AZ; Fleming Island, FL; Ackworth, GA; Hauppauge and
Patchogue, NY; Sugar Land, TX; Hampton, VA and Silverdale, WA
    
    
    5,778
    
    
    
    4,312
    
    
    
    9,963
    
    
    
    
    
    
    
    (380
    )
    
    
    4,312
    
    
    
    9,583
    
    
    
    13,895
    
    
    
    1,325
    
    
    Dec. 2006
    
    29.6 yrs.Industrial facility in Indianapolis, IN
    
    
    1,773
    
    
    
    1,035
    
    
    
    6,594
    
    
    
    
    
    
    
    
    
    
    
    1,035
    
    
    
    6,594
    
    
    
    7,629
    
    
    
    913
    
    
    Dec. 2006
    
    29.5 yrs.Warehouse/distribution facilities in Greenville, SC
    
    
    4,557
    
    
    
    625
    
    
    
    8,178
    
    
    
    
    
    
    
    
    
    
    
    625
    
    
    
    8,178
    
    
    
    8,803
    
    
    
    1,200
    
    
    Dec. 2006
    
    27.8 yrs.Industrial and office facilities in San Diego, CA
    
    
    35,197
    
    
    
    7,247
    
    
    
    29,098
    
    
    
    313
    
    
    
    
    
    
    
    7,247
    
    
    
    29,411
    
    
    
    36,658
    
    
    
    4,350
    
    
    Dec. 2006
    
    40 yrs.$
    638,151
    
    
    $
    212,537
    
    
    $
    830,620
    
    
    $
    127,360
    
    
    $
    (9,378
    )
    
    $
    214,761
    
    
    $
    946,378
    
    
    $
    1,161,139
    
    
    $
    221,824
 Gross Amount atCosts Capitalized
    
    
    Increase
    
    
    which CarriedInitial Cost to Company
    
    
    Subsequent to
    
    
    (Decrease) in Net
    
    
    at Close of
    
    
    DateDescription
    
    Encumbrances
    
    
    Land
    
    
    Buildings
    
    

Acquisition
(a)
    
    

Investments
(b)
    
    
    Period Total
    
    
    AcquiredDirect Financing Method:Industrial facility in Dallas, TX
    
    $
    
    
    
    $
    460
    
    
    $
    20,427
    
    
    $
    
    
    
    $
    (8,401
    )
    
    $
    12,486
    
    
    Nov. 1999Multiplex theater facility in Midlothian, VA
    
    
    8,623
    
    
    
    
    
    
    
    10,819
    
    
    
    854
    
    
    
    897
    
    
    
    12,570
    
    
    Sep. 1999Office facility in Scottsdale, AZ
    
    
    22,267
    
    
    
    
    
    
    
    25,415
    
    
    
    115
    
    
    
    
    
    
    
    25,530
    
    
    Sep. 2000Warehouse/distribution facility in Elk Grove Village, IL
    
    
    1,461
    
    
    
    
    
    
    
    4,172
    
    
    
    4
    
    
    
    (2,040
    )
    
    
    2,136
    
    
    Oct. 2000Multiplex motion picture theater in Pensacola, FL
    
    
    6,771
    
    
    
    
    
    
    
    4,112
    
    
    
    2,542
    
    
    
    
    
    
    
    6,654
    
    
    Dec. 2000Industrial and manufacturing facilities in Old Fort and Albemarie, NC; Holmesville, OH and Springfield, TN
    
    
    6,860
    
    
    
    2,961
    
    
    
    24,474
    
    
    
    19
    
    
    
    (9,759
    )
    
    
    17,695
    
    
    Sep. 2001Educational facility in Mooresville, NC
    
    
    5,131
    
    
    
    1,600
    
    
    
    9,276
    
    
    
    130
    
    
    
    (524
    )
    
    
    10,482
    
    
    Feb. 2002Industrial facility in Ashburn Junction, VA
    
    
    
    
    
    
    4,683
    
    
    
    15,116
    
    
    
    
    
    
    
    
    
    
    
    19,799
    
    
    Dec. 2006$
    51,113
    
    
    $
    9,704
    
    
    $
    113,811
    
    
    $
    3,664
    
    
    $
    (19,827
    )
    
    $
    107,352
 CPA®:14 2010 10-K  85




---



##### Table of Contents



NOTES to SCHEDULE III  REAL ESTATE and ACCUMULATED DEPRECIATION  (in thousands)
 
 (a)
    
    Consists of the costs of improvements subsequent to purchase and acquisition costs, including
legal fees, appraisal fees, title costs and other related professional fees.(b)
    
    The increase (decrease) in net investment was primarily due to (i) the amortization of
unearned income from net investment in direct financing leases, which produces a periodic rate
of return that at times may be greater or less than lease payments received, (ii) sales of
properties, (iii) impairment charges, (iv) changes in foreign currency exchange rates and (v)
adjustments in connection with purchasing certain minority interests.(c)
    
    Reconciliation of real estate and accumulated depreciation (see below): Reconciliation of Real Estate Subject toOperating LeasesYears ended December 31,2010
    
    
    2009
    
    
    2008Balance at beginning of year
    
    $
    1,255,966
    
    
    $
    1,275,775
    
    
    $
    1,301,505Additions
    
    
    839
    
    
    
    2,921
    
    
    
    527Dispositions
    
    
    (38,610
    )
    
    
    (23,473
    )
    
    
    (16,799
    )Reclassification from equity investment, direct financing lease
or funds held in escrow
    
    
    
    
    
    
    45,734
    
    
    
    Reclassification to assets held for sale
    
    
    (22,598
    )
    
    
    (11,421
    )
    
    
    Deconsolidation of real estate asset
    
    
    (10,320
    )
    
    
    
    
    
    
    Impairment charges
    
    
    (7,922
    )
    
    
    (37,779
    )
    
    
    Foreign currency translation adjustment
    
    
    (16,216
    )
    
    
    4,209
    
    
    
    (9,458
    )Balance at close of year
    
    $
    1,161,139
    
    
    $
    1,255,966
    
    
    $
    1,275,775
 Reconciliation of Accumulated DepreciationYears ended December 31,2010
    
    
    2009
    
    
    2008Balance at beginning of year
    
    $
    215,967
    
    
    $
    188,739
    
    
    $
    162,374Depreciation expense
    
    
    26,774
    
    
    
    29,614
    
    
    
    29,527Dispositions
    
    
    (11,006
    )
    
    
    (2,438
    )
    
    
    (1,883
    )Reclassification from equity investment
    
    
    
    
    
    
    2,217
    
    
    
    Reclassification to assets held for sale
    
    
    (3,685
    )
    
    
    (2,771
    )
    
    
    Deconsolidation of real estate asset
    
    
    (3,693
    )
    
    
    
    
    
    
    Foreign currency translation adjustment
    
    
    (2,533
    )
    
    
    606
    
    
    
    (1,279
    )Balance at close of year
    
    $
    221,824
    
    
    $
    215,967
    
    
    $
    188,739
  CPA®:14 2010 10-K  86




---



##### Table of Contents



Item 9.
    
    Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
  
 Item 9A.
    
    Controls and Procedures.
 Disclosure Controls and Procedures
   Managements Report on Internal Control Over Financial Reporting
      Changes in Internal Control Over Financial Reporting
  
 Item 9B.
    
    Other Information.
  CPA®:14 2010 10-K  87




---



##### Table of Contents



Item 10.
    
    Directors, Executive Officers and Corporate Governance.
 Names of Directors and Biographical Information
  Name
    
    Age
    
    
    OfficeWm. Polk Carey
    
    
    80
    
    
    Chairman of the BoardJames D. Price
    
    
    72
    
    
    Director*Marshall E. Blume
    
    
    69
    
    
    Director*
 
 *
    
    Independent Director Wm. Polk Carey  : 1997
 ® ® ® ® ® ® honoris causa honoris causa honoris causa ® ® ®
 James D. Price  : 2006
 ® ® ® ®
 CPA®:14 2010 10-K  88




---



##### Table of Contents



Marshall E. Blume  : 2007
 ® ® ®
 Names of Executive Officers and Biographical Information
  Name
    
    Age
    
    
    OfficeTrevor P. Bond
    
    
    49
    
    
    Chief Executive OfficerGino M. Sabatini
    
    
    42
    
    
    PresidentMark J. DeCesaris
    
    
    51
    
    
    Chief Financial Officer and Managing DirectorJohn D. Miller
    
    
    65
    
    
    Chief Investment OfficerThomas E. Zacharias
    
    
    57
    
    
    Chief Operating Officer and Managing Director
 Trevor P. Bond
 ® ® ® ® ® ®
 CPA®:14 2010 10-K  89




---



##### Table of Contents



Gino M. Sabatini
  Mark J. DeCesaris
 ® ® ® ® ® ® ®
 John D. Miller
 ® ® ®
 Thomas E. Zacharias
 ® ® ® ® magna cum laude
 CPA®:14 2010 10-K  90




---



##### Table of Contents



Family Relationships
  Legal Proceedings
  Section 16(a) Beneficial Ownership Reporting Compliance
  Code of Ethics
  Recommendation of Nominees to Our Board of Directors
  Audit Committee and Audit Committee Financial Expert
  Boards Role in Risk Oversight and Its Leadership Structure
  CPA®:14 2010 10-K  91




---



##### Table of Contents



Board Meetings and Directors Attendance
  
 Item 11.
    
    Executive Compensation.
 Compensation of Directors and Executive Officers  FISCAL 2010
   Fees Earned orPaid in Cash
    
    
    Stock Awards
    
    
    All Other Compensation
    
    
    TotalDirector
    
    ($)
    
    

($)(a)
    
    

($)(b)
    
    
    ($)Marshall E. Blume
    
    $
    22,333
    
    
    $
    10,000
    
    
    $
    170
    
    
    $
    32,502James D. Price
    
    
    29,333
    
    
    
    10,000
    
    
    
    170
    
    
    
    39,503
 
 (a)
    
    Amounts in the Stock Awards column reflect the aggregate grant date fair value of awards of
shares of our common stock granted for 2010, computed in accordance with FASB ASC Topic 718,
related to the annual grant of $10,000 of shares of our common stock on July 1, 2010. The
grant date fair values of awards were calculated by multiplying the number of shares granted
by our most recently published NAV per share of $11.80 on that date.(b)
    
    All Other Compensation reflects dividends paid on the stock awards set forth in the table. Board Report on Executive Compensation
  CPA®:14 2010 10-K  92




---



##### Table of Contents



Compensation Committee Interlocks and Insider Participation
  
 Item 12.
    
    Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
  Amount and Nature ofName of Beneficial Owner
    
    Beneficial Ownership
    
    
    Percentage of ClassWm. Polk Carey
    
    
    8,164,117
    (a)
    
    
    9.34
    %James D. Price
    
    
    4,205
    
    
    
    *Marshall E. Blume
    
    
    2,917
    
    
    
    *Trevor P. Bond
    
    
    1
    
    
    
    *Thomas E. Zacharias
    
    
    1,869
    
    
    
    *All Directors and Executive Officers as a Group (8 Individuals)
    
    
    8,173,109
    
    
    
    9.35
    %
 
 *
    
    Less than 1%(a)
    
    Includes 5,977,270 shares owned by Carey REIT II, Inc., a subsidiary of WPC, 2,088,364 shares
owned by CAM, 89,472 shares owned by W. P. Carey International LLC, 7,733 shares owned by
Corporate Property Advisors and 1,278 shares owned by W. P. Carey & Co., Inc. The inclusion of
these shares in the table shown above is not to be construed as a representation that Mr.
Carey beneficially owns such shares. 
 Item 13.
    
    Certain Relationships and Related Transactions, and Director Independence.
    CPA®:14 2010 10-K  93




---



##### Table of Contents



®
 ®
 Policies and Procedures With Respect to Related Party Transactions
  
 Item 14.
    
    Principal Accountant Fees and Services
 Audit Fees
 ® ® ®
  2010
    
    
    2009Audit Fees(a)
    
    $
    528,052
    
    
    $
    424,396Audit Related Fees(b)
    
    
    
    
    
    
    Tax Fees(c)
    
    
    3,900
    
    
    
    All Other Fees
    
    
    
    
    
    
    Total Fees
    
    $
    531,952
    
    
    $
    424,396
 
 (a)
    
    Audit Fees: This category consists of fees for professional services rendered for the audits
of our audited 2010 and 2009 financial statements and the review of the financial statements
included in our Quarterly Reports on Form 10-Q for the quarter ended March 31, June 30, and
September 30 for each of the 2010 and 2009 fiscal years and other audit services.(b)
    
    Audit Related Fees: This category consists of audit-related services performed by
PricewaterhouseCoopers LLP. No fees were billed for assurance and audit related services
rendered by PricewaterhouseCoopers LLP for the years ended 2010 and 2009.(c)
    
    Tax Fees: This category consists of fees billed to us by PricewaterhouseCoopers LLP for tax
compliance and consultation services. Pre-Approval by Audit Committee
  CPA®:14 2010 10-K  94




---



##### Table of Contents



Item 15.
    
    Exhibits, Financial Statement Schedules.
    Exhibit No.
    
    Description
    
    Method of Filing2.1
    
    Agreement and Plan of Merger, dated as of December 13, 2010, by and
among Corporate Property Associates 16  Global Incorporated, CPA 16
Acquisition Inc., CPA 16 Holdings Inc., CPA 16 Merger Sub Inc.,
Corporate Property Associates 14 Incorporated, CPA 14 Sub Inc., W. P.
Carey & Co. LLC and, for the limited purposes set forth therein, Carey
Asset Management Corp. and W. P. Carey & Co. B.V.
    
    Incorporated by reference to the
Current Report on Form 8-K filed
December 14, 20103.1
    
    Articles of Incorporation of Registrant
    
    Incorporated by reference to
Registration Statement on Form
S-11 (No. 333-31437) filed July
16, 19973.2
    
    Articles of Amendment
    
    Incorporated by reference to
Registration Statement on Form
S-11 (No. 333-76761) filed
November 16, 19993.3
    
    Amended and Restated Bylaws of Registrant
    
    Incorporated by reference to
Quarterly Report on Form 10-Q
for the quarter ended June 30,
2009 filed August 14, 20094.1
    
    Dividend Reinvestment and Share Purchase Plan
    
    Incorporated by reference to
Registration Statement on Form
S-3 (No. 333-170536) filed
November 12, 201010.1
    
    Asset Management Agreement dated as of September 2, 2008 between
Corporate Property Associates 14 Incorporated and W.P. Carey & Co. B.V.
    
    Incorporated by reference to
Quarterly Report on Form 10-Q
for the quarter ended September
30, 2008 filed November 14, 200810.2
    
    Amended and Restated Advisory Agreement dated as of October 1, 2009
between Corporate Property Associates 14 Incorporated and Carey Asset
Management Corp.
    
    Incorporated by reference to
Quarterly Report on Form 10-Q
for the quarter ended September
30, 2009 filed November 13, 200910.3
    
    Agreement for Sale and Purchase, dated as of December 13, 2010, by and
among Corporate Property Associates 14 Incorporated and Corporate
Property Associates 17  Global Incorporated.
    
    Incorporated by reference to the
Current Report on Form 8-K filed
December 14, 201010.4
    
    Agreement for Sale and Purchase, dated as of December 13, 2010, by and
among Corporate Property Associates 14 Incorporated and W. P. Carey &
Co. LLC.
    
    Incorporated by reference to the
Current Report on Form 8-K filed
December 14, 201021.1
    
    Subsidiaries of Registrant
    
    Filed herewith23.1
    
    Consent of PricewaterhouseCoopers LLP
    
    Filed herewith31.1
    
    Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
    
    Filed herewith31.2
    
    Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
    
    Filed herewith32
    
    Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
    
    Filed herewith
 CPA®:14 2010 10-K  95




---



##### Table of Contents



SIGNATURES
  Corporate Property Associates 14 IncorporatedDate 3/25/2011
    By:
    /s/ Mark J. DeCesarisMark J. DeCesarisChief Financial Officer  Signature
    
    Title
    
    Date/s/ Wm. Polk Carey

Wm. Polk Carey
    
    Chairman of the Board and Director
    
    3/25/2011/s/ Trevor P. Bond
    
    Chief Executive Officer
    
    3/25/2011Trevor P. Bond
    
    (Principal
Executive Officer)/s/ Mark J. DeCesaris
    
    Chief Financial Officer
    
    3/25/2011Mark J. DeCesaris
    
    (Principal
Financial Officer)/s/ Thomas J. Ridings Jr.
    
    Chief Accounting Officer
    
    3/25/2011Thomas J. Ridings Jr.
    
    (Principal
Accounting Officer)/s/ Marshall E. Blume

Marshall E. Blume
    
    Director
    
    3/25/2011/s/ James D. Price

James D. Price
    
    Director
    
    3/25/2011
 CPA®:14 2010 10-K  96