##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended June 30, 2009
 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: 000-52891
 
 CORPORATE PROPERTY ASSOCIATES 17  GLOBAL INCORPORATED
  Maryland
(State of incorporation)
    
    20-8429087
(I.R.S. Employer Identification No.)50 Rockefeller PlazaNew York, New York
    
    10020(Address of principal executive office)
    
    (Zip Code)
 Investor Relations (212) 492-8920
 (212) 492-1100
 þ o
 o o
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer þ
(Do not check if a smaller reporting company)
    
    Smaller reporting company o
 o þ




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##### 



INDEX
 Page No.PART I  FINANCIAL INFORMATIONItem 1. Financial StatementsConsolidated Balance Sheets as of June 30, 2009 and December 31, 2008
    
    
    2Consolidated Statements of Income for the three and six months ended June 30, 2009 and 2008
    
    
    3Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2009 and 2008
    
    
    4Consolidated Statements of Equity for the six months ended June 30, 2009 and the year ended December 31, 2008
    
    
    5Consolidated Statements of Cash Flows for the six months ended June 30, 2009 and 2008
    
    
    6Notes to Consolidated Financial Statements
    
    
    7Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    18Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    26Item 4T. Controls and Procedures
    
    
    27PART II  OTHER INFORMATIONItem 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    27Item 4. Submission of Matters to a Vote of Security Holders
    
    
    28Item 6. Exhibits
    
    
    29Signatures
    
    
    30Exhibit 31.1Exhibit 31.2Exhibit 32
  Forward Looking Statements
   CPA®:17  Global 6/30/2009 10-Q 1




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##### Table of Contents



PART I
 
 Item 1. Financial Statements
 CORPORATE PROPERTY ASSOCIATES 17  GLOBAL INCORPORATED
 
 Consolidated
Balance Sheets (Unaudited)
 (in thousands, except share and per share amounts)
 June 30, 2009
    
    
    December 31, 2008(NOTE)AssetsReal estate, net
    
    $
    181,284
    
    
    $
    167,526Net investment in direct financing leases
    
    
    302,253
    
    
    
    83,924Real estate under construction
    
    
    17,529
    
    
    
    Equity investment in real estate
    
    
    24,612
    
    
    
    21,864Cash and cash equivalents
    
    
    136,248
    
    
    
    161,569Commercial mortgage-backed securities
    
    
    20,619
    
    
    
    20,309Intangible assets, net
    
    
    17,782
    
    
    
    18,291Deferred offering costs and other assets
    
    
    40,133
    
    
    
    5,589Total assets
    
    $
    740,460
    
    
    $
    479,072Liabilities and EquityLiabilities:Non-recourse debt
    
    $
    132,259
    
    
    $
    133,633Accounts payable, accrued expenses and other liabilities
    
    
    5,163
    
    
    
    4,170Prepaid and deferred rental income
    
    
    6,867
    
    
    
    4,468Due to affiliates
    
    
    6,156
    
    
    
    4,797Distributions payable
    
    
    7,406
    
    
    
    4,507Total liabilities
    
    
    157,851
    
    
    
    151,575Commitments and contingenciesEquity:CPA®:17  Global shareholders equity:Preferred stock, $0.001 par value; 50,000,000 shares authorized; none issued
    
    
    
    
    
    
    Common stock, $0.001 par value; 400,000,000 shares authorized; 52,472,504
and
34,625,497 shares issued, respectively
    
    
    53
    
    
    
    35Additional paid-in capital
    
    
    470,640
    
    
    
    310,732Distributions in excess of accumulated earnings
    
    
    (19,679
    )
    
    
    (11,056
    )Accumulated other comprehensive loss
    
    
    (1,924
    )
    
    
    (2,288
    )449,090
    
    
    
    297,423Less, treasury stock at cost, 61,507 shares at June 30, 2009
    
    
    (572
    )
    
    
    Total CPA®:17  Global shareholders equity
    
    
    448,518
    
    
    
    297,423Noncontrolling interests
    
    
    134,091
    
    
    
    30,074Total equity
    
    
    582,609
    
    
    
    327,497Total liabilities and equity
    
    $
    740,460
    
    
    $
    479,072
 Note:
    
    The consolidated balance sheet at December 31, 2008 has been derived from the consolidated
financial statements at that date (Note 2).  CPA®:17  Global 6/30/2009 10-Q 2




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##### Table of Contents



CORPORATE PROPERTY ASSOCIATES 17  GLOBAL INCORPORATED
 
 Consolidated Statements of Income (Unaudited)
 (in thousands, except share and per share amounts)
 Three months ended June 30,
    
    
    Six months ended June 30,2009
    
    
    2008
    
    
    2009
    
    
    2008RevenuesRental income
    
    $
    4,462
    
    
    $
    12
    
    
    $
    8,733
    
    
    $
    12Interest income from direct financing leases
    
    
    8,439
    
    
    
    
    
    
    
    12,204
    
    
    
    Interest income from commercial mortgage-backed securities
    
    
    683
    
    
    
    310
    
    
    
    1,356
    
    
    
    31013,584
    
    
    
    322
    
    
    
    22,293
    
    
    
    322ExpensesDepreciation and amortization
    
    
    (1,180
    )
    
    
    (6
    )
    
    
    (2,266
    )
    
    
    (6
    )Property expenses
    
    
    (1,535
    )
    
    
    (61
    )
    
    
    (2,897
    )
    
    
    (61
    )General and administrative
    
    
    (821
    )
    
    
    (604
    )
    
    
    (2,063
    )
    
    
    (910
    )(3,536
    )
    
    
    (671
    )
    
    
    (7,226
    )
    
    
    (977
    )Other Income and ExpensesOther interest income
    
    
    41
    
    
    
    471
    
    
    
    169
    
    
    
    618Income from equity investment in real estate
    
    
    332
    
    
    
    52
    
    
    
    723
    
    
    
    52Other income and expenses
    
    
    73
    
    
    
    
    
    
    
    (1,617
    )
    
    
    Interest expense
    
    
    (2,041
    )
    
    
    (9
    )
    
    
    (4,133
    )
    
    
    (9
    )(1,595
    )
    
    
    514
    
    
    
    (4,858
    )
    
    
    661Income before income taxes
    
    
    8,453
    
    
    
    165
    
    
    
    10,209
    
    
    
    6Provision for income taxes
    
    
    (279
    )
    
    
    
    
    
    
    (520
    )
    
    
    Net Income
    
    
    8,174
    
    
    
    165
    
    
    
    9,689
    
    
    
    6Less: Net income attributable to noncontrolling interests
    
    
    (3,730
    )
    
    
    
    
    
    
    (4,947
    )
    
    
    Net Income Attributable to CPA®:17  Global Shareholders
    
    $
    4,444
    
    
    $
    165
    
    
    $
    4,742
    
    
    $
    6Earnings Per ShareNet income attributable to CPA®:17  Global shareholders
    
    $
    0.09
    
    
    $
    0.01
    
    
    $
    0.11
    
    
    $
    Weighted Average Shares Outstanding
    
    
    47,065,275
    
    
    
    11,974,201
    
    
    
    42,633,263
    
    
    
    7,467,403Distributions Declared Per Share
    
    $
    0.1575
    
    
    $
    0.1375
    
    
    $
    0.3137
    
    
    $
    0.2750
  CPA®:17  Global 6/30/2009 10-Q 3




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##### Table of Contents



CORPORATE PROPERTY ASSOCIATES 17  GLOBAL INCORPORATED
 
 Consolidated Statements of Comprehensive Income (Unaudited)  (in thousands)
 Three months ended June 30,
    
    
    Six months ended June 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Net Income
    
    $
    8,174
    
    
    $
    165
    
    
    $
    9,689
    
    
    $
    6Other Comprehensive IncomeForeign currency translation adjustment
    
    
    2,755
    
    
    
    4
    
    
    
    294
    
    
    
    4Change in unrealized gain on derivative instrument
    
    
    30
    
    
    
    
    
    
    
    28
    
    
    
    2,785
    
    
    
    4
    
    
    
    322
    
    
    
    4Comprehensive income
    
    
    10,959
    
    
    
    169
    
    
    
    10,011
    
    
    
    10Less: Net income attributable to noncontrolling interests
    
    
    (3,730
    )
    
    
    
    
    
    
    (4,947
    )
    
    
    (Less) Add: Foreign currency translation adjustment
attributable to noncontrolling interests
    
    
    (753
    )
    
    
    
    
    
    
    42
    
    
    
    Comprehensive Income Attributable to CPA®:17
 Global Shareholders
    
    $
    6,476
    
    
    $
    169
    
    
    $
    5,106
    
    
    $
    10
  CPA®:17  Global 6/30/2009 10-Q 4




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CORPORATE PROPERTY ASSOCIATES 17  GLOBAL INCORPORATED
 
 Consolidated Statements of Equity (Unaudited)
  (in thousands, except share amounts)
 CPA®:17  Global ShareholdersDistributions
    
    
    Accumulated
    
    
    
    
    
    
    TotalAdditional
    
    
    in Excess of
    
    
    Other
    
    
    
    
    
    

CPA®:17 Common
    
    
    Paid-In
    
    
    Accumulated
    
    
    Comprehensive
    
    
    Treasury
    
    
    Global
    
    
    NoncontrollingShares
    
    
    Stock
    
    
    Capital
    
    
    Earnings
    
    
    (Loss) Income
    
    
    Stock
    
    
    Shareholders
    
    
    Interests
    
    
    TotalBalance at January 1, 2008
    
    
    22,222
    
    
    $
    
    
    
    $
    200
    
    
    $
    (106
    )
    
    $
    
    
    
    $
    
    
    
    $
    94
    
    
    $
    
    
    
    $
    94Shares issued, net of
offering costs
    
    
    34,544,270
    
    
    
    35
    
    
    
    309,942
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    309,977
    
    
    
    
    
    
    
    309,977Shares issued to affiliates
    
    
    59,005
    
    
    
    
    
    
    
    590
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    590
    
    
    
    
    
    
    
    590Contributions
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    31,527
    
    
    
    31,527Distributions declared
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (9,703
    )
    
    
    
    
    
    
    
    
    
    
    (9,703
    )
    
    
    (23
    )
    
    
    (9,726
    )Net loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,247
    )
    
    
    
    
    
    
    
    
    
    
    (1,247
    )
    
    
    (403
    )
    
    
    (1,650
    )Other comprehensive loss:Foreign currency
translation adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,288
    )
    
    
    
    
    
    
    (2,288
    )
    
    
    (1,027
    )
    
    
    (3,315
    )Balance at
December 31, 2008
    
    
    34,625,497
    
    
    
    35
    
    
    
    310,732
    
    
    
    (11,056
    )
    
    
    (2,288
    )
    
    
    
    
    
    
    297,423
    
    
    
    30,074
    
    
    
    327,497Shares issued, net of
offering costs
    
    
    17,741,551
    
    
    
    18
    
    
    
    158,858
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    158,876
    
    
    
    
    
    
    
    158,876Shares issued to affiliates
    
    
    105,456
    
    
    
    
    
    
    
    1,050
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,050
    
    
    
    
    
    
    
    1,050Contributions
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    103,363
    
    
    
    103,363Distributions declared
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (13,365
    )
    
    
    
    
    
    
    
    
    
    
    (13,365
    )
    
    
    (4,251
    )
    
    
    (17,616
    )Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,742
    
    
    
    
    
    
    
    
    
    
    
    4,742
    
    
    
    4,947
    
    
    
    9,689Other comprehensive income (loss):Foreign currency
translation adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    336
    
    
    
    
    
    
    
    336
    
    
    
    (42
    )
    
    
    294Change in unrealized
gain on derivative
instrument
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    28
    
    
    
    
    
    
    
    28
    
    
    
    
    
    
    
    28Repurchase of shares
    
    
    (61,507
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (572
    )
    
    
    (572
    )
    
    
    
    
    
    
    (572
    )Balance at June 30, 2009
    
    
    52,410,997
    
    
    $
    53
    
    
    $
    470,640
    
    
    $
    (19,679
    )
    
    $
    (1,924
    )
    
    $
    (572
    )
    
    $
    448,518
    
    
    $
    134,091
    
    
    $
    582,609
  CPA®:17  Global 6/30/2009 10-Q 5




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##### Table of Contents



CORPORATE PROPERTY ASSOCIATES 17  GLOBAL INCORPORATED
 
 Consolidated Statements of Cash Flows (Unaudited)
 (in thousands)
 Six months ended June 30,2009
    
    2008Cash Flows  Operating ActivitiesNet income
    
    $
    9,689
    
    
    $
    6Adjustments to reconcile net income to net cash provided by (used in) operating activities:Depreciation and amortization, including intangible assets
    
    
    2,123
    
    
    
    9Straight-line rent adjustments and amortization of rent-related intangibles
    
    
    (1,426
    )
    
    
    Income from equity investment in real estate in excess of distributions received
    
    
    (594
    )
    
    
    (52
    )Issuance of shares to affiliate in satisfaction of fees due
    
    
    1,050
    
    
    
    Amortization of discount on commercial mortgage-backed securities
    
    
    (321
    )
    
    
    (26
    )Realized loss on foreign currency transactions
    
    
    1,692
    
    
    
    Allowance for uncollectible amounts
    
    
    1,758
    
    
    
    Increase in accounts receivable and prepaid expenses
    
    
    (1,960
    )
    
    
    (154
    )Increase (decrease) in accounts payable and accrued expenses (a)
    
    
    1,342
    
    
    
    (446
    )Increase in prepaid and deferred rental income
    
    
    1,685
    
    
    
    59Decrease in due to affiliates
    
    
    (430
    )
    
    
    (582
    )Increase in capitalized interest
    
    
    (407
    )
    
    
    Net cash provided by (used in) operating activities
    
    
    14,201
    
    
    
    (1,186
    )Cash Flows  Investing ActivitiesAcquisitions of real estate and direct financing lease (a)
    
    
    (246,930
    )
    
    
    (2,565
    )Contributions to equity investments in real estate (a)
    
    
    (2,125
    )
    
    
    (22,780
    )Purchase of marketable securities
    
    
    
    
    
    
    (19,965
    )Funds for future investments placed in escrow
    
    
    (107,410
    )
    
    
    Funds for future investments released from escrow
    
    
    75,934
    
    
    
    Payment of deferred acquisition fees to an affiliate
    
    
    (1,252
    )
    
    
    (290
    )Net cash used in investing activities
    
    
    (281,783
    )
    
    
    (45,600
    )Cash Flows  Financing ActivitiesDistributions paid
    
    
    (10,466
    )
    
    
    (408
    )Contributions from noncontrolling interests
    
    
    103,363
    
    
    
    Distributions to noncontrolling interests
    
    
    (4,251
    )
    
    
    Proceeds from mortgage notes payable
    
    
    
    
    
    
    1,950Scheduled payments of mortgage principal
    
    
    (1,142
    )
    
    
    Payment of mortgage deposits, net of deposits refunded
    
    
    (2,261
    )
    
    
    (383
    )Proceeds from issuance of shares, net of offering costs
    
    
    158,876
    
    
    
    155,978Purchase of treasury stock
    
    
    (572
    )
    
    
    Net cash provided by financing activities
    
    
    243,547
    
    
    
    157,137Change in Cash and Cash Equivalents During the PeriodEffect of exchange rate changes on cash
    
    
    (1,286
    )
    
    
    4Net (decrease) increase in cash and cash equivalents
    
    
    (25,321
    )
    
    
    110,355Cash and cash equivalents, beginning of period
    
    
    161,569
    
    
    
    183Cash and cash equivalents, end of period
    
    $
    136,248
    
    
    $
    110,538
 Noncash investing and financing activities:
 (a)
    
    The cost basis of real estate investments acquired during the six months ended June 30, 2009
and 2008, including equity investments in real estate, also includes deferred acquisition fees
payable of $3.3 million and $0.9 million, respectively.  CPA®:17  Global 6/30/2009 10-Q 6




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##### Table of Contents



CORPORATE PROPERTY ASSOCIATES 17  GLOBAL INCORPORATED
 
 Notes to Consolidated Financial Statements (Unaudited)
 Note 1. Organization and Offering
 Organization
   Public Offering
   Note 2. Basis of Presentation
  Basis of Consolidation
   CPA®:17  Global 6/30/2009 10-Q 7




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##### Table of Contents



Notes to Consolidated Financial Statements
   Information about International Geographic Areas
  Reclassifications
  Adoption of New Accounting Pronouncements
 SFAS 157
  SFAS 141R
   CPA®:17  Global 6/30/2009 10-Q 8




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##### Table of Contents



Notes to Consolidated Financial Statements
 SFAS 160
  SFAS 161
  FSP 142-3
  FSP 107-1
  FSP 157-4
  FSP 115-2 and 124-2
  SFAS 165
  CPA®:17  Global 6/30/2009 10-Q 9




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##### Table of Contents



Notes to Consolidated Financial Statements
 Recent Accounting Pronouncements
 SFAS 166
  SFAS 167
  Note 3. Agreements and Transactions with Related Parties
   CPA®:17  Global 6/30/2009 10-Q 10




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##### Table of Contents



Notes to Consolidated Financial Statements
     Note 4. Real Estate
  June 30, 2009
    
    
    December 31, 2008Land
    
    $
    36,772
    
    
    $
    36,817Building
    
    
    147,863
    
    
    
    132,164Less: Accumulated depreciation
    
    
    (3,351
    )
    
    
    (1,455
    )$
    181,284
    
    
    $
    167,526
 CPA®:17  Global 6/30/2009 10-Q 11




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##### Table of Contents



Notes to Consolidated Financial Statements
  Note 5. Net Investment in Direct Financing Leases
  June 30, 2009
    
    
    December 31, 2008Minimum lease payments receivable
    
    $
    598,570
    
    
    $
    148,636Unguaranteed residual value
    
    
    301,720
    
    
    
    83,991900,290
    
    
    
    232,627Less: unearned income
    
    
    (598,037
    )
    
    
    (148,703
    )$
    302,253
    
    
    $
    83,924
   2009 (remainder)
    
    $
    9,5822010
    
    
    31,6912011
    
    
    32,0892012
    
    
    32,4612013
    
    
    32,839Thereafter through 2028
    
    
    459,908
  Note 6. Equity Investment in Real Estate
   CPA®:17  Global 6/30/2009 10-Q 12




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##### Table of Contents



Notes to Consolidated Financial Statements
  June 30, 2009
    
    
    December 31, 2008Assets
    
    $
    86,254
    
    
    $
    85,177Liabilities
    
    
    (29,862
    )
    
    
    (40,073
    )Partners equity
    
    $
    56,392
    
    
    $
    45,104
 Three months ended June 30,
    
    
    Six months ended June 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Revenue
    
    $
    1,662
    
    
    $
    1,668
    
    
    $
    3,322
    
    
    $
    3,339Expenses
    
    
    (1,085
    )
    
    
    (1,372
    )
    
    
    (2,699
    )
    
    
    (2,619
    )Gain on extinguishment of debt
    
    
    
    
    
    
    
    
    
    
    6,512
    
    
    
    Net income
    
    $
    577
    
    
    $
    296
    
    
    $
    7,135
    
    
    $
    720
  Note 7. Acquisitions of Real Estate
 Net Investment in Direct Financing Lease
 ®
 Real Estate Under Construction
  Note 8. Securities Held to Maturity
  Description
    
    Face Value
    
    
    Amortized Cost
    
    
    Unrealized Loss
    
    
    Estimated Fair ValueCMBS
    
    $
    33,284
    
    
    $
    20,619
    
    
    $
    (16,546
    )
    
    $
    4,073
  CPA®:17  Global 6/30/2009 10-Q 13




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Notes to Consolidated Financial Statements
  Rating(a)
    
    Amortized CostA
    
    $
    1,495A-
    
    
    8,943B
    
    
    2,818B+
    
    
    1,584BB-
    
    
    3,938BBB+
    
    
    1,841$
    20,619
 (a)
    
    Ratings are those of Standard & Poors Ratings Services, a division of The McGraw-Hill
Companies, Inc.  Note 9. Fair Value Measurements
     CPA®:17  Global 6/30/2009 10-Q 14




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##### Table of Contents



Notes to Consolidated Financial Statements
 Note 10. Risk Management and Use of Derivative Financial Instruments
 Risk Management
  Commercial Mortgage-Backed Securities
  Foreign Currency Exchange
  Use of Derivative Financial Instruments
   CPA®:17  Global 6/30/2009 10-Q 15




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Notes to Consolidated Financial Statements
 Embedded Credit Derivative
  Interest Rate Cap
  Portfolio Concentration Risk
    Note 11. Income Taxes
  CPA®:17  Global 6/30/2009 10-Q 16




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Notes to Consolidated Financial Statements
  Note 12. Pro Forma Financial Information
   Three months ended June 30,
    
    
    Six months ended June 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Pro forma total revenues
    
    $
    13,655
    
    
    $
    13,780
    
    
    $
    27,065
    
    
    $
    27,471Pro forma net income
    
    $
    8,129
    
    
    $
    9,773
    
    
    $
    14,194
    
    
    $
    19,450Less: Net income attributable to noncontrolling interests
    
    
    (3,729
    )
    
    
    (3,672
    )
    
    
    (7,061
    )
    
    
    (7,334
    )Pro forma net income attributable to CPA®:17  Global
shareholders
    
    $
    4,400
    
    
    $
    6,101
    
    
    $
    7,133
    
    
    $
    12,116Pro forma earnings per share:Net income attributable to CPA®:17  Global shareholders
    
    $
    0.08
    
    
    $
    0.12
    
    
    $
    0.14
    
    
    $
    0.23
  Note 13. Subsequent Events
     CPA®:17  Global 6/30/2009 10-Q 17




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##### Table of Contents



Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
  Business Overview
  Financial Highlights
 Three months ended June 30,
    
    
    Six months ended June 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Total revenues
    
    $
    13,584
    
    
    $
    322
    
    
    $
    22,293
    
    
    $
    322Net income attributable to CPA®:17  Global shareholders
    
    
    4,444
    
    
    
    165
    
    
    
    4,742
    
    
    
    6Cash flow provided by (used in) operating activities
    
    
    
    
    
    
    
    
    
    
    14,201
    
    
    
    (1,186
    )
   Current Trends
  Investment Opportunities
   CPA®:17
 Global 6/30/2009 10-Q 18




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##### Table of Contents



Financing Conditions
   Corporate Defaults
    Fundraising
  Commercial Mortgage-Backed Securities
  CPA®:17  Global 6/30/2009 10-Q 19




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##### Table of Contents



Other Factors
   Results of Operations
    Six months ended June 30,2009
    
    
    2008Rental income
    
    $
    8,733
    
    
    $
    12Interest income from direct financing leases
    
    
    12,204
    
    
    
    $
    20,937
    
    
    $
    12
 CPA®:17  Global 6/30/2009 10-Q 20




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##### Table of Contents



Six months endedLessee
    
    June 30, 2009The New York Times Company (a) (b)
    
    $
    8,401LifeTime Fitness, Inc.
    
    
    3,407Frontier Spinning Mills, Inc. (b)
    
    
    2,230Wagon Automotive Nagold GmbH and Wagon Automotive
GmbH (b) (c) (d)
    
    
    2,067Actebis
Peacock GmbH (b)(c)
    
    
    1,981Laureate Education, Inc.
    
    
    1,445Sabre Communications Corporation and Cellxion, LLC
    
    
    1,290Flexmag Industries, Inc. (e)
    
    
    116$
    20,937
 (a)
    
    We entered into this investment during 2009.(b)
    
    These revenues are generated in consolidated ventures with affiliates and include lease
revenues applicable to noncontrolling interests totaling $5.9 million for the six months ended
June 30, 2009.(c)
    
    Amounts are subject to fluctuations in foreign currency exchange rates.(d)
    
    Wagon Automotive GmbH filed for bankruptcy in Germany in December 2008 and terminated its
lease in bankruptcy proceedings effective May 2009, but as of the date of this Report was
paying rent to us, albeit at a significantly reduced rate. Wagon Automotive Nagold GmbH has
not filed for bankruptcy, and while it ceased making rent payments in May and June 2009, as of
the date of this Report it has resumed paying rent substantially in accordance with the terms
stated in its lease (Note 10).(e)
    
    We earned de minimis lease revenue from this investment during the six months ended June 30,
2008.
 Lease Revenues
   Interest Income from Commercial Mortgage-Backed Securities
  Depreciation and Amortization
  Property Expenses
  General and Administrative Expense
  CPA®:17  Global 6/30/2009 10-Q 21




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Other Interest Income
  Income from Equity Investment in Real Estate
   Other Income and Expenses
   Interest Expense
  Provision for Income Taxes
  Net Income Attributable to Noncontrolling Interests
   Net Income Attributable to CPA ® :17  Global Shareholders
 ®
 CPA®:17  Global 6/30/2009 10-Q 22




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Financial Condition
   Operating Activities
  Investing Activities
  Financing Activities
    CPA®:17  Global 6/30/2009 10-Q 23




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Cash Resources
   Cash Requirements
  Off-Balance Sheet Arrangements and Contractual Obligations
  Less than
    
    
    
    
    
    
    
    
    
    
    More thanTotal
    
    
    1 Year
    
    
    1-3 Years
    
    
    3-5 Years
    
    
    5 yearsNon-recourse debt  principal
    
    $
    132,259
    
    
    $
    2,668
    
    
    $
    5,459
    
    
    $
    6,098
    
    
    $
    118,034Deferred acquisition fees
    
    
    5,554
    
    
    
    2,777
    
    
    
    2,777
    
    
    
    
    
    
    
    Interest on borrowings and deferred acquisition fees
    
    
    80,800
    
    
    
    9,780
    
    
    
    17,797
    
    
    
    16,516
    
    
    
    36,707Due to the advisor (a)
    
    
    221
    
    
    
    221
    
    
    
    
    
    
    
    
    
    
    
    Build-to-suit commitments (b)
    
    
    15,135
    
    
    
    15,135
    
    
    
    
    
    
    
    
    
    
    
    Operating and other lease commitments (c)
    
    
    507
    
    
    
    66
    
    
    
    137
    
    
    
    142
    
    
    
    162$
    234,476
    
    
    $
    30,647
    
    
    $
    26,170
    
    
    $
    22,756
    
    
    $
    154,903
 (a)
    
    Represents organization and offering costs payable to the advisor and its subsidiaries in
connection with the offering of our securities.(b)
    
    Represents remaining build-to-suit commitment for a domestic project. Estimated total
construction costs for the project are currently projected to be $31.0 million, of which $15.9
million was funded as of June 30, 2009.(c)
    
    Operating and other lease commitments consist of our share of future 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. We anticipate that our share of future minimum lease payments will
increase significantly as we continue to invest the proceeds of our offering. CPA®:17  Global 6/30/2009 10-Q 24




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##### Table of Contents



Subsequent Events
    CPA®:17  Global 6/30/2009 10-Q 25




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##### Table of Contents



Item 3. Quantitative and Qualitative Disclosures About Market Risk
 Market Risks
   Interest Rate Risk
      2009
    
    

2010
    
    
    2011
    
    
    2012
    
    
    2013
    
    
    Thereafter
    
    
    Total
    
    
    Fair valueFixed rate debt
    
    $
    1,417
    
    
    $
    2,555
    
    
    $
    2,729
    
    
    $
    2,909
    
    
    $
    3,096
    
    
    $
    119,553
    
    
    $
    132,259
    
    
    $
    121,984
  CPA®:17  Global 6/30/2009 10-Q 26




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##### Table of Contents



Foreign Currency Exchange Rate Risk
   
 Item 4T. Controls and Procedures
 Disclosure Controls and Procedures
   Changes in Internal Control over Financial Reporting
  
 PART II
 
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
  CPA®:17  Global 6/30/2009 10-Q 27




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##### Table of Contents



Shares registered
    
    
    200,000,000Aggregate price of offering amount registered
    
    $
    2,000,000Shares sold (a)
    
    
    51,466,320Aggregated offering price of amount sold
    
    $
    514,238Direct or indirect payments to directors, officers, general partners of the issuer or their
associates;
to persons owning ten percent or more of any class of equity securities of the issuer; and to
affiliates of the issuer
    
    
    (51,320
    )Direct or indirect payments to others
    
    
    (6,019
    )Net offering proceeds to the issuer after deducting expenses
    
    
    456,899Purchases of real estate related assets
    
    
    (299,651
    )Temporary investments in cash and cash equivalents
    
    $
    157,248
 (a)
    
    Excludes shares issued to affiliates, including our advisor, and excludes shares issued
pursuant to our distribution reinvestment and stock purchase plan.  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 the2009 Period
    

shares purchased (a)
    
    
    paid per share
    
    

plans or programs (a)
    
    

plans or programs (a)April
    
    
    
    
    
    
    
    
    
    
    N/A
    
    
    
    N/AMay
    
    
    
    
    
    
    
    
    
    
    N/A
    
    
    
    N/AJune
    
    
    52,618
    
    
    $
    9.30
    
    
    
    N/A
    
    
    
    N/ATotal
    
    
    52,618
 (a)
    
    Represents shares of our common stock purchased under our redemption plan, pursuant to which
we may elect to redeem shares at the request of our shareholders who have held their shares
for at least one year from the date of their issuance, subject to certain conditions and
limitations. The maximum amount of shares purchasable by us in any period depends on a number
of factors and is at the discretion of our board of directors. The redemption plan will
terminate if and when our shares are listed on a national securities market. 
 Item 4. Submission of Matters to a Vote of Security Holders
  Name of Director
    
    Shares Voting For
    
    Shares WithheldWm. Polk Carey
    
    
    21,893,077
    
    
    
    522,223Gordon F. DuGan
    
    
    21,937,635
    
    
    
    477,665Marshall E. Blume
    
    
    21,900,547
    
    
    
    514,753Elizabeth P. Munson
    
    
    21,925,397
    
    
    
    489,903Richard J. Pinola
    
    
    21,916,097
    
    
    
    499,203James D. Price
    
    
    21,897,465
    
    
    
    517,835
 CPA®:17  Global 6/30/2009 10-Q 28




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®
 
 Item 6.
    
    Exhibits
 Exhibit No.
    
    Description
    
    Method of Filing31.1
    
    Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
    
    Filed herewith31.2
    
    Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
    
    Filed herewith32
    
    Certifications of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002
    
    Filed herewith
 CPA®:17  Global 6/30/2009 10-Q 29




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##### Table of Contents



SIGNATURES
  Corporate Property Associates 17  Global IncorporatedDate 8/14/2009
    By:
    /s/ Mark J. DeCesarisMark J. DeCesarisManaging Director and Acting Chief Financial Officer
(Principal Financial Officer)Date 8/14/2009
    By:
    /s/ Thomas J. Ridings, Jr.Thomas J. Ridings, Jr.Executive Director and Chief Accounting Officer
(Principal Accounting Officer) CPA®:17  Global 6/30/2009 10-Q 30




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##### Table of Contents



EXHIBIT INDEX
 Exhibit No.
    
    Description31.1
    
    
    Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 200231.2
    
    
    Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 200232
    
    
    Certifications of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002