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 March 31, 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
    
    20-8429087(State of incorporation)
    
    (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
    
    Smaller reporting company o(Do not check if a smaller reporting company)
 o þ




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INDEX
 Page No.PART I  FINANCIAL INFORMATIONItem 1. Financial Statements*Consolidated Balance Sheets as of March 31, 2009 and December 31, 2008
    
    
    2Consolidated Statements of Operations for the three months ended March 31, 2009 and 2008
    
    
    3Consolidated Statements of Comprehensive Loss for the three months ended March 31, 2009 and 2008
    
    
    4Consolidated Statement of Equity for the three months ended March 31, 2009 and the year ended December 31, 2008
    
    
    5Consolidated Statements of Cash Flows for the three months ended March 31, 2009 and 2008
    
    
    6Notes to Consolidated Financial Statements
    
    
    7Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    17Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    24Item 4T. Controls and Procedures
    
    
    25PART II  OTHER INFORMATIONItem 1A. Risk Factors
    
    
    26Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    27Item 6. Exhibits
    
    
    28Signatures
    
    
    29
 
 *
    
    The summarized consolidated financial statements contained herein are unaudited; however, in
the opinion of management, all adjustments (consisting of normal recurring adjustments)
necessary for a fair statement of such financial statements have been included. Forward Looking Statements
   CPA®:17  Global 3/31/2009 10-Q  1




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##### 



PART I
 
 Item 1. Financial Statements
 CORPORATE PROPERTY ASSOCIATES 17  GLOBAL INCORPORATED
 
 Consolidated Balance Sheets (Unaudited)
 (in thousands, except share and per share amounts)
 March 31, 2009
    
    
    December 31, 2008(NOTE)AssetsReal estate, net
    
    $
    163,434
    
    
    $
    167,526Net investment in direct financing leases
    
    
    315,066
    
    
    
    83,924Real estate under construction
    
    
    15,407
    
    
    
    Equity investment in real estate
    
    
    24,243
    
    
    
    21,864Cash and cash equivalents
    
    
    78,697
    
    
    
    161,569Commercial mortgage-backed securities
    
    
    20,460
    
    
    
    20,309Intangible assets, net
    
    
    17,518
    
    
    
    18,291Deferred offering costs and other assets
    
    
    4,991
    
    
    
    5,589Total assets
    
    $
    639,816
    
    
    $
    479,072Liabilities and EquityLiabilities:Non-recourse debt
    
    $
    129,128
    
    
    $
    133,633Accounts payable, accrued expenses and other liabilities
    
    
    3,901
    
    
    
    4,170Prepaid and deferred rental income
    
    
    4,065
    
    
    
    4,468Due to affiliates
    
    
    7,394
    
    
    
    4,797Distributions payable
    
    
    5,958
    
    
    
    4,507Total liabilities
    
    
    150,446
    
    
    
    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; 42,065,749
and
34,625,497 shares issued, respectively
    
    
    42
    
    
    
    35Additional paid-in capital
    
    
    377,110
    
    
    
    310,732Distributions in excess of accumulated earnings
    
    
    (16,716
    )
    
    
    (11,056
    )Accumulated other comprehensive loss
    
    
    (3,956
    )
    
    
    (2,288
    )356,480
    
    
    
    297,423Less, treasury stock at cost, 8,889 shares at March 31, 2009
    
    
    (83
    )
    
    
    Total CPA®:17  Global shareholders equity
    
    
    356,397
    
    
    
    297,423Noncontrolling interests
    
    
    132,973
    
    
    
    30,074Total equity
    
    
    489,370
    
    
    
    327,497Total liabilities and equity
    
    $
    639,816
    
    
    $
    479,072
   CPA®:17  Global 3/31/2009 10-Q  2




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##### 



CORPORATE PROPERTY ASSOCIATES 17  GLOBAL INCORPORATED
 
 Consolidated Statements of Operations (Unaudited)
 (in thousands, except share and per share amounts)
 Three months ended March 31,2009
    
    
    2008RevenuesRental income
    
    $
    4,271
    
    
    $
    Interest income from direct financing leases
    
    
    3,765
    
    
    
    Interest income from commercial mortgage-backed securities
    
    
    673
    
    
    
    8,709
    
    
    
    ExpensesDepreciation and amortization
    
    
    (1,086
    )
    
    
    General and administrative
    
    
    (1,242
    )
    
    
    (306
    )Property expenses
    
    
    (1,362
    )
    
    
    (3,690
    )
    
    
    (306
    )Other Income and ExpensesOther interest income
    
    
    128
    
    
    
    147Income from equity investment in real estate
    
    
    391
    
    
    
    Other income and expenses
    
    
    (1,690
    )
    
    
    Interest expense
    
    
    (2,092
    )
    
    
    (3,263
    )
    
    
    147Income (loss) before income taxes
    
    
    1,756
    
    
    
    (159
    )Provision for income taxes
    
    
    (241
    )
    
    
    Net Income (Loss)
    
    
    1,515
    
    
    
    (159
    )Less: Net income attributable to noncontrolling interests
    
    
    (1,217
    )
    
    
    Net Income (Loss) Attributable to CPA®:17  Global Shareholders
    
    $
    298
    
    
    $
    (159
    )Earnings (Loss) Per ShareNet income (loss) attributable to CPA®:17  Global shareholders
    
    $
    0.01
    
    
    $
    (0.05
    )Weighted Average Shares Outstanding
    
    
    38,152,272
    
    
    
    2,962,858Distributions Declared Per Share
    
    $
    0.1562
    
    
    $
    0.1375
  CPA®:17  Global 3/31/2009 10-Q  3




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##### 



CORPORATE PROPERTY ASSOCIATES 17  GLOBAL INCORPORATED
 
 Consolidated Statements of Comprehensive Loss (Unaudited)
 (in thousands)
 Three months ended March 31,2009
    
    
    2008Net Income (Loss)
    
    $
    1,515
    
    
    $
    (159
    )Other Comprehensive LossForeign currency translation adjustment
    
    
    (2,461
    )
    
    
    Change in unrealized loss on derivative instrument
    
    
    (2
    )
    
    
    (2,463
    )
    
    
    Comprehensive loss
    
    
    (948
    )
    
    
    (159
    )Less: Net income attributable to noncontrolling interests
    
    
    (1,217
    )
    
    
    Add: Foreign currency translation adjustment attributable to noncontrolling interests
    
    
    795
    
    
    
    Comprehensive Loss Attributable to CPA®:17  Global Shareholders
    
    $
    (1,370
    )
    
    $
    (159
    )
  CPA®:17  Global 3/31/2009 10-Q  4




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##### 



CORPORATE PROPERTY ASSOCIATES 17  GLOBAL INCORPORATED
 
 Consolidated Statement 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
    
    
    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
    )
    
    
    (370
    )
    
    
    (1,617
    )Other comprehensive
loss:Foreign currency
translation
adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,288
    )
    
    
    
    
    
    
    (2,288
    )
    
    
    (1,060
    )
    
    
    (3,348
    )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
    
    
    7,393,955
    
    
    
    7
    
    
    
    65,920
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    65,927
    
    
    
    
    
    
    
    65,927Shares issued to
affiliates
    
    
    46,297
    
    
    
    
    
    
    
    458
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    458
    
    
    
    
    
    
    
    458Contributions
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    103,363
    
    
    
    103,363Distributions declared
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5,958
    )
    
    
    
    
    
    
    
    
    
    
    (5,958
    )
    
    
    (886
    )
    
    
    (6,844
    )Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    298
    
    
    
    
    
    
    
    
    
    
    
    298
    
    
    
    1,217
    
    
    
    1,515Other comprehensive
loss:Foreign currency
translation
adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,666
    )
    
    
    
    
    
    
    (1,666
    )
    
    
    (795
    )
    
    
    (2,461
    )Change in
unrealized loss
on derivative
instrument
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2
    )
    
    
    
    
    
    
    (2
    )
    
    
    
    
    
    
    (2
    )Repurchase of shares
    
    
    (8,889
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (83
    )
    
    
    (83
    )
    
    
    
    
    
    
    (83
    )Balance at March 31,
2009
    
    
    42,056,860
    
    
    $
    42
    
    
    $
    377,110
    
    
    $
    (16,716
    )
    
    $
    (3,956
    )
    
    $
    (83
    )
    
    $
    356,397
    
    
    $
    132,973
    
    
    $
    489,370
  CPA®:17  Global 3/31/2009 10-Q  5




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##### 



CORPORATE PROPERTY ASSOCIATES 17  GLOBAL INCORPORATED
 
 Consolidated Statements of Cash Flows (Unaudited)
 (in thousands)
 Three months ended March 31,2009
    
    
    2008Cash Flows  Operating ActivitiesNet income (loss)
    
    $
    1,515
    
    
    $
    (159
    )Adjustments to reconcile net income (loss) to net cash provided by operating
activities:Depreciation and amortization, including intangible assets
    
    
    1,086
    
    
    
    Straight-line rent adjustments and amortization of rent-related intangibles
    
    
    (520
    )
    
    
    Income from equity investment in real estate in excess of distributions received
    
    
    (256
    )
    
    
    Issuance of shares to affiliate in satisfaction of fees due
    
    
    458
    
    
    
    Amortization of discount on commercial mortgage-backed securities
    
    
    156
    
    
    
    Realized loss on foreign currency transactions
    
    
    1,692
    
    
    
    Allowance for uncollectible amounts
    
    
    878
    
    
    
    Increase in accounts receivable and prepaid expenses
    
    
    (958
    )
    
    
    Decrease in prepaid and deferred rental income
    
    
    (665
    )
    
    
    Change in other operating assets and liabilities
    
    
    89
    
    
    
    239Net cash provided by operating activities
    
    
    3,475
    
    
    
    80Cash Flows  Investing ActivitiesAcquisitions of real estate and direct financing lease (a) (b)
    
    
    (245,447
    )
    
    
    Contributions to equity investments in real estate
    
    
    (2,125
    )
    
    
    Payment of deferred acquisition fees to an affiliate
    
    
    (155
    )
    
    
    Net cash used in investing activities
    
    
    (247,727
    )
    
    
    Cash Flows  Financing ActivitiesDistributions paid
    
    
    (4,507
    )
    
    
    (2
    )Contributions from noncontrolling interests
    
    
    103,363
    
    
    
    Distributions to noncontrolling interests
    
    
    (886
    )
    
    
    Scheduled payments of mortgage principal
    
    
    (759
    )
    
    
    Proceeds from issuance of shares, net of offering costs
    
    
    65,927
    
    
    
    67,307Purchase of treasury stock
    
    
    (83
    )
    
    
    Net cash provided by financing activities
    
    
    163,055
    
    
    
    67,305Change in Cash and Cash Equivalents During the PeriodEffect of exchange rate changes on cash
    
    
    (1,675
    )
    
    
    Net (decrease) increase in cash and cash equivalents
    
    
    (82,872
    )
    
    
    67,385Cash and cash equivalents, beginning of period
    
    
    161,569
    
    
    
    183Cash and cash equivalents, end of period
    
    $
    78,697
    
    
    $
    67,568
 Noncash investing and financing activities:
 
 (a)
    
    The cost basis of real estate investments acquired during the three months ended March 31,
2009 also includes deferred acquisition fees payable of $3.3 million.(b)
    
    Excludes interest capitalized of $0.1 million.  CPA®:17  Global 3/31/2009 10-Q  6




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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 3/31/2009 10-Q  7




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Notes to Consolidated Financial Statements
   Information about International Geographic Areas
  Reclassifications and Revisions
  Adoption of New Accounting Pronouncements
 SFAS 157
  SFAS 141R
   CPA®:17  Global 3/31/2009 10-Q  8




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Notes to Consolidated Financial Statements
 SFAS 160
  SFAS 161
  FSP 142-3
  Recent Accounting Pronouncements
 FSP 107-1
  FSP 157-4
  FSP 115-2 and 124-2
  Note 3. Agreements and Transactions with Related Parties
  CPA®:17  Global 3/31/2009 10-Q  9




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Notes to Consolidated Financial Statements
      CPA®:17  Global 3/31/2009 10-Q  10




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##### 



Notes to Consolidated Financial Statements
  Note 4. Real Estate
  March 31, 2009
    
    
    December 31, 2008Land
    
    $
    36,017
    
    
    $
    36,817Building
    
    
    129,731
    
    
    
    132,164Less: Accumulated depreciation
    
    
    (2,314
    )
    
    
    (1,455
    )$
    163,434
    
    
    $
    167,526
  Note 5. Net Investment in Direct Financing Leases
  March 31, 2009
    
    
    December 31, 2008Minimum lease payments receivable
    
    $
    629,203
    
    
    $
    148,636Unguaranteed residual value
    
    
    65,027
    
    
    
    83,991694,230
    
    
    
    232,627Less: unearned income
    
    
    (379,164
    )
    
    
    (148,703
    )$
    315,066
    
    
    $
    83,924
   2009 (remainder)
    
    $
    24,3162010
    
    
    32,8552011
    
    
    33,2522012
    
    
    33,6242013
    
    
    34,002Thereafter through 2023
    
    
    471,154
  CPA®:17  Global 3/31/2009 10-Q  11




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##### 



Notes to Consolidated Financial Statements
 Note 6. Equity Investment in Real Estate
    March 31, 2009
    
    
    December 31, 2008Assets
    
    $
    85,570
    
    
    $
    85,177Liabilities
    
    
    (29,816
    )
    
    
    (40,073
    )Partners equity
    
    $
    55,754
    
    
    $
    45,104Three months endedMarch 31, 2009
    
    
    March 31, 2008Revenue
    
    $
    1,660
    
    
    $
    1,671Expenses
    
    
    (1,614
    )
    
    
    (1,248
    )Gain on extinguishment of debt
    
    
    6,512
    
    
    
    Net income
    
    $
    6,558
    
    
    $
    423Income from our equity investment in real estate (a)
    
    $
    391
    
    
    $
    
 
 (a)
    
    Inclusive of depreciation adjustments related to other-than-temporary impairment charges. Note 7. Acquisitions of Real Estate
 Net Investment in Direct Financing Lease
 ®
 Real Estate Under Construction
  CPA®:17  Global 3/31/2009 10-Q  12




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##### 



Notes to Consolidated Financial Statements
 Note 8. Securities Held to Maturity
  Description
    
    Face Value
    
    Amortized Cost
    
    Unrealized Loss
    
    Estimated Fair ValueCMBS
    
    $
    33,284
    
    
    $
    20,460
    
    
    $
    (16,845
    )
    
    $
    3,615
   Rating (a)
    
    Amortized CostA+
    
    $
    3,913A
    
    
    1,486A-
    
    
    10,454BBB+
    
    
    1,825BBB-
    
    
    2,782$
    20,460
 
 (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 3/31/2009 10-Q  13




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##### 



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 3/31/2009 10-Q  14




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##### 



Notes to Consolidated Financial Statements
  Embedded Credit Derivative
  Interest Rate Cap
  Concentration of Credit Risk
     Note 11. Pro Forma Financial Information
  CPA®:17  Global 3/31/2009 10-Q  15




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##### 



Notes to Consolidated Financial Statements
   Three months ended March 31,2009
    
    2008Pro forma total revenues
    
    $
    13,410
    
    
    $
    13,806Pro forma
net income
    
    
    6,097
    
    
    
    9,613Less:  Net income
attributable to noncontrolling interests
    
    
    (3,332
    )
    
    
    (3,700
    )2009
    
    
    2008Pro forma
net income attributable to
CPA®:17
 Global shareholders
    
    
    2,765
    
    
    
    5,913Pro forma earnings per share:Net income
attributable to
CPA®:17
 Global shareholders
    
    $
    0.07
    
    
    $
    0.14
  CPA®:17  Global 3/31/2009 10-Q  16




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##### 



Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
  Business Overview
  Highlights
 Highlights during the first quarter of 2009
 
    
    Raised $71.6 million in our initial public offering. Since inception in December 2007,
we have raised more than $440 million through April 30, 2009.
    
    Completed a net lease financing transaction with The New York Times Company involving a
leasehold condominium interest for approximately $233.7 million, inclusive of
noncontrolling interest of $104.1 million, through a venture in which we and two affiliates
hold 55%, 27.25% and 17.75% interests, respectively. We also entered into a domestic
build-to-suit project for a total cost of up to $32.5 million, based on estimated
construction costs.
    
    A venture in which we own a 50% interest repaid its $39 million outstanding balance on a
non-recourse mortgage loan at a discount for $32.5 million and recognized a corresponding
gain of $6.5 million. However, our $3.2 million share of the gain was reduced by $2.9
million as a result of an other-than-temporary impairment charge that we recognized to
reduce the carrying value of our investment to the estimated fair value of the ventures
underlying properties. In connection with this transaction, the venture obtained
non-recourse mortgage financing of approximately $29 million
    
    Our daily cash distribution for the first quarter was $0.001736 per share payable to
shareholders of record as of the close of business on each day during the quarter, or $0.63
per share on an annualized basis.
 Financial Highlights
 Three months ended March 31,2009
    
    2008Total revenues
    
    $
    8,709
    
    
    $
    Net income (loss) attributable to CPA®:17  Global shareholders
    
    
    298
    
    
    
    (159
    )Cash flow from operating activities
    
    
    3,475
    
    
    
    80
  Current Trends
  CPA®:17  Global 3/31/2009 10-Q  17




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Investment Opportunities
    Financing Conditions
  Fundraising
  Net Asset Values
  Corporate Defaults
   CPA®:17  Global 3/31/2009 10-Q  18




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##### 



Commercial Mortgage-Backed Securities
   Consumer Price Index (CPI)
  Exchange Rate Movements
  Results of Operations
   CPA®:17  Global 3/31/2009 10-Q  19




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##### 



Three months endedMarch 31, 2009Rental income
    
    $
    4,271Interest income from direct financing leases
    
    
    3,765$
    8,036
  Three months endedLessee
    
    March 31, 2009The New York Times Company (a) (b)
    
    $
    1,850Life Time Fitness, Inc.
    
    
    1,680Frontier Spinning Mills, Inc. (b)
    
    
    1,109Wagon Automotive Nagold GmbH and Wagon Automotive GmbH (b) (c) (d)
    
    
    1,047Actebis Peacock GmbH (c)
    
    
    949Laureate Education, Inc.
    
    
    709Sabre Communications Corporation and Cellxion, LLC
    
    
    632Flexmag Industries, Inc.
    
    
    60$
    8,036
 
 (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 $1.9 million for the three months
ended March 31, 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 with us in February 2009. Wagon Automotive Nagold GmbH has not yet filed for bankruptcy
but it has ceased making rent payments (Note 10). Lease Revenues
   Interest Income from Commercial Mortgage-Backed Securities
  Depreciation and Amortization
  General and Administrative Expense
  CPA®:17  Global 3/31/2009 10-Q  20




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##### 



Property Expenses
  Income from Equity Investment in Real Estate
   Other Income and Expenses
   Interest Expense
  Net Income Attributable to Noncontrolling Interests
   Net Income (Loss) Attributable to CPA ® :17  Global Shareholders
 ® ®
 Financial Condition
  CPA®:17  Global 3/31/2009 10-Q  21




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##### 



Operating Activities
 Investing Activities
 Financing Activities
   Cash Resources
  CPA®:17  Global 3/31/2009 10-Q  22




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##### 



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
    
    $
    129,128
    
    
    $
    2,349
    
    
    $
    5,195
    
    
    $
    5,977
    
    
    $
    115,607Deferred acquisition fees
    
    
    6,634
    
    
    
    2,777
    
    
    
    3,857
    
    
    
    
    
    
    
    Interest on borrowings and deferred acquisition fees
    
    
    81,395
    
    
    
    9,196
    
    
    
    17,498
    
    
    
    16,571
    
    
    
    38,130Due to the advisor (a)
    
    
    715
    
    
    
    715
    
    
    
    
    
    
    
    
    
    
    
    Build-to-suit commitments (b)
    
    
    16,985
    
    
    
    16,985
    
    
    
    
    
    
    
    
    
    
    
    Operating and other lease commitments (c)
    
    
    369
    
    
    
    46
    
    
    
    96
    
    
    
    100
    
    
    
    127$
    235,226
    
    
    $
    32,068
    
    
    $
    26,646
    
    
    $
    22,648
    
    
    $
    153,864
 
 (a)
    
    Represents costs payable to the advisor and its subsidiaries in connection with the offering
of our securities, consisting of organization and offering costs totaling $0.4 million and
commissions payable in connection with our fundraising activity totaling $0.3 million.(b)
    
    Represents remaining build-to-suit commitment for a project. Estimated total construction
costs for the project are currently projected to be $31 million,
of which $14 million was
funded as of March 31, 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 3/31/2009 10-Q  23




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##### 



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
    
    $
    1,746
    
    
    $
    2,471
    
    
    $
    2,639
    
    
    $
    2,814
    
    
    $
    2,996
    
    
    $
    116,462
    
    
    $
    129,128
    
    
    $
    118,681
    CPA®:17  Global 3/31/2009 10-Q  24




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##### 



Foreign Currency Exchange Rate Risk
   
 Item 4T. Controls and Procedures
 Disclosure Controls and Procedures
   Changes in Internal Control over Financial Reporting
  CPA®:17  Global 3/31/2009 10-Q  25




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##### 



PART II
 
 Item 1A. Risk Factors
  The current financial and economic crisis could adversely affect our business.
  Our success will be dependent on the performance of our advisor.
 ®
 WPC and Carey Financial have settled an SEC investigation. If other actions are brought against WPC
or Carey Financial, we could be adversely affected.
 ®
 ®
  We have limited independence from our advisor.
 ®
 Our participation in joint ventures creates additional risk.
 ®
 CPA®:17  Global 3/31/2009 10-Q  26




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##### 



The lack of an active public trading market for our shares combined with the limit on the number of
our shares a person may own may discourage a takeover and make it difficult for stockholders to
sell shares quickly.
  Maryland law could restrict change in control, which could have the effect of inhibiting a change
in control even if a change in control were in our stockholders interest.
  
    
    any person who beneficially owns 10% or more of the voting power of
outstanding shares, referred to as an interested stockholder;
    
    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 stockholder; or
    
    an affiliate of an interested stockholder.
  
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
  CPA®:17  Global 3/31/2009 10-Q  27




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##### 



We intend to use the net proceeds of our offering to invest in a diversified portfolio of
income-producing commercial properties and other real estate related assets. The use of
proceeds from our offering of common stock, which commenced in December 2007 pursuant to a
registration statement (No. 333-140842) that was declared effective in November 2007, is as
follows at March 31, 2009 (in thousands, except share amounts):
 Shares registered
    
    
    200,000,000Aggregate price of offering amount registered
    
    $
    2,000,000Shares sold
(a)
    
    
    41,428,995Aggregated offering price of amount sold
    
    $
    413,936Direct 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
    
    
    (41,284
    )Direct or indirect payments to others
    
    
    (5,053
    )Net offering proceeds to the issuer after deducting expenses
    
    
    367,599Purchases of real estate related assets
    
    
    (298,167
    )Temporary investments in cash and cash equivalents
    
    $
    69,432
 
 (a)
    
    Excludes shares issued to affiliates, including our advisor, and excludes shares issued
pursuant to our distribution reinvestment and stock purchase plan. The following table provides information with respect to repurchases of our common stock
during the three months ended March 31, 2009:
 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 (i)
    
    plans or programs (i)January
    
    
    
    
    
    $
    
    
    
    
    N/A
    
    
    
    N/AFebruary
    
    
    
    
    
    
    
    
    
    
    N/A
    
    
    
    N/AMarch
    
    
    8,889
    
    
    
    9.30
    
    
    
    N/A
    
    
    
    N/ATotal
    
    
    8,889
 
 (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 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 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 3/31/2009 10-Q  28




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##### 



SIGNATURES
   Date 5/15/2009
    By:
    /s/ Mark J. DeCesarisMark J. DeCesarisManaging Director and Acting Chief Financial Officer
(Principal Financial Officer)Date 5/15/2009
    By:
    /s/ Thomas J. Ridings, Jr.Thomas J. Ridings, Jr.Executive Director and Chief Accounting Officer
(Principal Accounting Officer) CPA®:17  Global 3/31/2009 10-Q  29