##### 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, 2008
 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
  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 June 30, 2008 and December 31, 2007
    
    
    2Consolidated Statements of Operations for the three and six months ended June 30, 2008
and the period from inception (February 20, 2007) through June 30, 2007
    
    
    3Consolidated
Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2008
and the period from inception (February 20, 2007) through June 30, 2007
    
    
    4Consolidated Statement of Shareholders Equity for the six months ended June 30, 2008
    
    
    5Consolidated Statements of Cash Flows for the six months ended June 30, 2008
and the period from inception (February 20, 2007) through June 30, 2007
    
    
    6Notes to Consolidated Financial Statements
    
    
    7Item 2.  Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    14Item 3.  Quantitative and Qualitative Disclosures About Market Risk
    
    
    18Item 4T.  Controls and Procedures
    
    
    19PART II  OTHER INFORMATIONItem 1A.  Risk Factors
    
    
    20Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    21Item 4.  Submission of Matters to a Vote of Security Holders
    
    
    22Item 6.  Exhibits
    
    
    22Signatures
    
    
    24EX-31.1: CERTIFICATIONEX-31.2: CERTIFICATIONEX-32: CERTIFICATIONS
  
 *
    
    The summarized 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 6/30/2008 10-Q 1




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##### Table of Contents



CORPORATE
PROPERTY ASSOCIATES 17  GLOBAL INCORPORATED
 
 PART I
 
 ITEM 1.  FINANCIAL STATEMENTS
 
 CONSOLIDATED BALANCE SHEETS (UNAUDITED)  (in thousands, except share and per share amounts)
 June 30, 2008
    
    
    December 31, 2007(NOTE)AssetsReal estate, net
    
    $
    2,413
    
    
    $
    Equity investments in real estate
    
    
    23,709
    
    
    
    8Cash and cash equivalents
    
    
    110,538
    
    
    
    183Commercial mortgage-backed securities
    
    
    20,011
    
    
    
    Deferred offering costs
    
    
    3,492
    
    
    
    2,719Other assets
    
    
    2,467
    
    
    
    34Total assets
    
    $
    162,630
    
    
    $
    2,944Liabilities and Shareholders EquityLiabilities:Non-recourse debt
    
    $
    1,950
    
    
    $
    Due to affiliates
    
    
    2,517
    
    
    
    2,768Accounts payable and accrued expenses
    
    
    2,189
    
    
    
    82Distributions payable
    
    
    1,647
    
    
    
    Total liabilities
    
    
    8,303
    
    
    
    2,850Commitments and contingencies (Note 8)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; 17,459,861
and 22,222
shares issued and outstanding, respectively
    
    
    17
    
    
    
    Additional paid-in capital
    
    
    156,461
    
    
    
    200Distributions in excess of accumulated deficit
    
    
    (2,155
    )
    
    
    (106
    )Accumulated other comprehensive income
    
    
    4
    
    
    
    Total shareholders equity
    
    
    154,327
    
    
    
    94Total liabilities and shareholders equity
    
    $
    162,630
    
    
    $
    2,944
 
 Note:
    
    The consolidated balance sheet at December 31, 2007 has been derived from the audited
consolidated financial statements at that date.  CPA ® :17
 Global 6/30/2008 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)
 Period from inceptionThree months ended
    
    
    Six months ended
    
    
    (February 20, 2007)June 30, 2008
    
    
    June 30, 2008
    
    
    through June 30, 2007RevenuesInterest income from commercial
mortgage-backed securities
    
    $
    310
    
    
    $
    310
    
    
    $
    Rental income
    
    
    12
    
    
    
    12
    
    
    
    322
    
    
    
    322
    
    
    
    ExpensesGeneral and administrative
    
    
    (604
    )
    
    
    (910
    )
    
    
    (40
    )Property expenses
    
    
    (61
    )
    
    
    (61
    )
    
    
    Depreciation and amortization
    
    
    (6
    )
    
    
    (6
    )
    
    
    (671
    )
    
    
    (977
    )
    
    
    (40
    )Other Income and ExpensesOther interest income
    
    
    471
    
    
    
    618
    
    
    
    Income from equity investments in real estate
    
    
    52
    
    
    
    52
    
    
    
    Interest expense
    
    
    (9
    )
    
    
    (9
    )
    
    
    514
    
    
    
    661
    
    
    
    Net Income (Loss)
    
    $
    165
    
    
    $
    6
    
    
    $
    (40
    )Earnings (Loss) Per Share
    
    $
    0.01
    
    
    $
    
    
    
    $
    (1.81
    )Weighted Average Shares Outstanding
    
    
    11,974,201
    
    
    
    7,467,403
    
    
    
    22,222Distributions Declared Per Share
    
    $
    0.1375
    
    
    $
    0.2750
    
    
    
    N/A
  CPA®:17  Global 6/30/2008 10-Q 3




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CORPORATE
PROPERTY ASSOCIATES 17  GLOBAL INCORPORATED
 
 CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)  (in thousands)
 Period from inceptionThree months ended
    
    
    Six months ended
    
    
    (February 20, 2007)June 30, 2008
    
    
    June 30, 2008
    
    
    through June 30, 2007Net Income (Loss)
    
    $
    165
    
    
    $
    6
    
    
    $
    (40
    )Other Comprehensive IncomeForeign currency translation adjustment
    
    
    4
    
    
    
    4
    
    
    
    Comprehensive Income (Loss)
    
    $
    169
    
    
    $
    10
    
    
    $
    (40
    )
  CPA®:17  Global 6/30/2008 10-Q 4




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CORPORATE
PROPERTY ASSOCIATES 17  GLOBAL INCORPORATED
 
 CONSOLIDATED STATEMENT OF SHAREHOLDERS EQUITY (UNAUDITED)   (in thousands, except share amounts)
 Distributions
    
    
    AccumulatedAdditional
    
    
    in Excess of
    
    
    OtherCommon
    
    
    Paid-In
    
    
    Accumulated
    
    
    ComprehensiveShares
    
    
    Stock
    
    
    Capital
    
    
    Deficit
    
    
    Income
    
    
    TotalBalance at December 31, 2007
    
    
    22,222
    
    
    $
    
    
    
    $
    200
    
    
    $
    (106
    )
    
    $
    
    
    
    $
    94Shares issued, net of offering costs
    
    
    17,437,639
    
    
    
    17
    
    
    
    156,261
    
    
    
    
    
    
    
    
    
    
    
    156,278Distributions declared
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,055
    )
    
    
    
    
    
    
    (2,055
    )Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6
    
    
    
    
    
    
    
    6Other comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4
    
    
    
    4Balance at June 30, 2008
    
    
    17,459,861
    
    
    $
    17
    
    
    $
    156,461
    
    
    $
    (2,155
    )
    
    $
    4
    
    
    $
    154,327
  CPA®:17  Global 6/30/2008 10-Q 5




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CORPORATE
PROPERTY ASSOCIATES 17  GLOBAL INCORPORATED
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)  (in thousands)
 Period from inceptionSix months ended
    
    
    (February 20, 2007)June 30, 2008
    
    
    through June 30, 2007Cash Flows  Operating ActivitiesNet income
(loss)
    
    $
    6
    
    
    $
    (40
    )Adjustments
to reconcile net income (loss) to net cash used in operating activities:Depreciation
and amortization, including intangible assets and deferred financing
costs
    
    
    9
    
    
    
    Income from equity investments in real estate
    
    
    (52
    )
    
    
    Amortization
of discount on commercial mortgage-backed securities
    
    
    (26
    )
    
    
    Increase in accounts receivable and prepaid expenses
    
    
    (154
    )
    
    
    (Decrease) increase in accounts payable and accrued expenses (a)
    
    
    (446
    )
    
    
    40Increase in prepaid rental income
    
    
    59
    
    
    
    Decrease in due to affiliates (b)
    
    
    (582
    )
    
    
    Net cash used in operating activities
    
    
    (1,186
    )
    
    
    Cash Flows  Investing ActivitiesAcquisitions of real estate and equity investments in real estate (c)
    
    
    (25,635
    )
    
    
    Purchase of marketable securities
    
    
    (19,965
    )
    
    
    Net cash used in investing activities
    
    
    (45,600
    )
    
    
    Cash Flows  Financing ActivitiesDistributions paid
    
    
    (408
    )
    
    
    Proceeds from mortgage notes payable
    
    
    1,950
    
    
    
    Payment of mortgage deposits
    
    
    (383
    )
    
    
    Proceeds from stock issuance
    
    
    155,978
    
    
    
    200Net cash provided by financing activities
    
    
    157,137
    
    
    
    200Change in Cash and Cash Equivalents During the PeriodEffect of exchange rate changes on cash
    
    
    4
    
    
    
    Net increase in cash and cash equivalents
    
    
    110,355
    
    
    
    200Cash and cash equivalents, beginning of period
    
    
    183
    
    
    
    Cash and cash equivalents, end of period
    
    $
    110,538
    
    
    $
    200
 
  (a)
    
    Increase in accounts payable and accrued expenses excludes increase of $1,618 in amounts
payable in connection with potential investment opportunities.(b)
    
    Increase in due to affiliates for the six months ended June 30, 2008 excludes increase in
deferred offering costs of $1,073, consisting of $773 payable to an affiliate for offering
costs and $300 payable to an affiliate for commissions incurred in connection with
fundraising.(c)
    
    The cost basis of real estate investments acquired during the six months ended June 30, 2008
also includes deferred acquisition fees payable of $631.
  CPA®:17  Global 6/30/2008 10-Q 6




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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)  (in thousands, except share and per share amounts)
 Note 1. Organization and Offering
 Organization
    Public Offering
   Note 2. Basis of Presentation
   Basis of Consolidation
   CPA ® :17
 Global 6/30/2008 10-Q 7




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Notes to Consolidated Financial Statements
   Commercial Mortgage Backed Securities
  Foreign Currency Translation
   Adoption of New Accounting Pronouncements
 SFAS 157
  SFAS 159
  CPA ® :17
 Global 6/30/2008 10-Q 8




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Notes to Consolidated Financial Statements
  Recent Accounting Pronouncements
 SFAS 141R
  SFAS 160
  SFAS 161
  FSP 142-3
  Note 3. Agreements and Transactions with Related Parties
  CPA ® :17
 Global 6/30/2008 10-Q 9




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Notes to Consolidated Financial Statements
       CPA ® :17
 Global 6/30/2008 10-Q 10




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##### Table of Contents



Notes to Consolidated Financial Statements
 Note 4. Real Estate
  June 30, 2008Land
    
    $
    625Building
    
    
    1,793Less: Accumulated depreciation
    
    
    (5
    )$
    2,413
 Note 5. Equity Investment in Real Estate
   June 30, 2008
    
    
    December 31, 2007Assets
    
    $
    86,565
    
    
    $
    87,833Liabilities
    
    
    (40,261
    )
    
    
    (1,356
    )Partners equity
    
    $
    46,304
    
    
    $
    86,477Three months ended
    
    
    Six months endedJune 30, 2008
    
    
    June 30, 2008Revenue
    
    $
    1,668
    
    
    $
    3,339Expenses
    
    
    (1,372
    )
    
    
    (2,619
    )Net income
    
    $
    296
    
    
    $
    720Our share of income from our equity investment in real estate
    
    $
    52
    
    
    $
    52
 Note 6. Acquisitions of Real Estate-Related Investments
 Real Estate Acquired
  Commercial Mortgage Backed Securities
  Note 7. Intangibles
  CPA ® :17
 Global 6/30/2008 10-Q 11




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Notes to Consolidated Financial Statements
  June 30, 2008Lease intangibles:In-place lease
    
    $
    237Tenant relationship
    
    
    43Less: Accumulated amortization
    
    
    (1
    )$
    279
  Note 8. Commitments and Contingencies
  Maryland Securities Commission
 ®
 Note 9. Advisor Settlement of SEC Investigation
 ® ®
  Note 10. Risk Management
 Risk Management
  Concentration of Credit Risk
  Commercial Mortgage-Backed Securities
  CPA ® :17
 Global 6/30/2008 10-Q 12




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Notes to Consolidated Financial Statements
  Foreign Currency Exchange
  Note 11. Subsequent Events
   CPA ® :17
 Global 6/30/2008 10-Q 13




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ITEM 2.  MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 (in thousands, except share and per share amounts)
  Business Overview
  ®
 Fund Highlights
 Public Offering
 Real Estate Investments
 Commercial Mortgage Backed Securities Investments 
 Financing Activity
 Distribution
 Current Trends
  Investment Opportunities
   CPA ® :17
 Global 6/30/2008 10-Q 14




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Fundraising
  Mortgage Financing
  Commercial Real Estate
  Corporate Defaults
  Competition
  CPI
  CPA ® :17
 Global 6/30/2008 10-Q 15




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Results of Operations
   Revenues
   General and Administrative Expense
   Property Expenses
  Other Interest Income
  Income from Equity Investments in Real Estate
  Net Income (Loss)
   CPA ® :17
 Global 6/30/2008 10-Q 16




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Financial Condition
  Operating Activities
 Investing
Activities
 Financing Activities
     Cash Resources
   Cash Requirements
  CPA ® :17
 Global 6/30/2008 10-Q 17




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Off-Balance Sheet Arrangements and Contractual Obligations
 Less than
    
    
    
    
    
    
    
    
    
    
    More thanTotal
    
    
    1 Year
    
    
    1-3 Years
    
    
    3-5 Years
    
    
    5 yearsNon-recourse debt  principal
    
    $
    1,950
    
    
    $
    44
    
    
    $
    106
    
    
    $
    121
    
    
    $
    1,679Deferred acquisition fees
    
    
    631
    
    
    
    210
    
    
    
    421
    
    
    
    
    
    
    
    Interest on borrowings and deferred acquisition fees
    
    
    1,501
    
    
    
    132
    
    
    
    280
    
    
    
    233
    
    
    
    856Due to the advisor (a)
    
    
    1,678
    
    
    
    1,678
    
    
    
    
    
    
    
    
    
    
    
    $
    5,760
    
    
    $
    2,064
    
    
    $
    807
    
    
    $
    354
    
    
    $
    2,535
 
 (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 $1,378 and
commissions payable in connection with our fundraising activity totaling $300.   Subsequent Events
   
 Item 3.  Quantitative and Qualitative Disclosures About Market Risk
   Interest Rate Risk
    CPA ® :17
 Global 6/30/2008 10-Q 18




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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 6/30/2008 10-Q 19




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##### Table of Contents



PART II  (in thousands, except share and per share amounts)
 
 Item 1A.  Risk Factors
  Deterioration in the credit markets could adversely affect our ability to finance or refinance
investments and the ability of our tenants to meet their obligations, which could affect our
ability to meet our financial objectives.
   We were incorporated in February 2007 and have a limited operating history; therefore there is no
assurance that we will be able to achieve our investment objectives.
 A delay in investing funds may adversely affect or cause a delay in our ability to deliver expected
returns to investors and may adversely affect our performance.  ®
 CPA ® :17  Global 6/30/2008 10-Q 20




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The lack of a public 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 shareholders to sell shares
quickly.
 If our distributions exceed our available cash from operations, we will fund distributions from
other sources, which could reduce the funds we have available for investments and your overall
return.
 The past performance of programs sponsored by or affiliated with WPC is not an indicator of our
future performance.  ® ®
 
 Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds
  CPA ® :17  Global 6/30/2008 10-Q 21




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##### Table of Contents



Shares registered
    
    
    200,000,000Aggregate price of offering amount registered
    
    $
    2,000,000Shares sold (a)
    
    
    17,411,636Aggregated offering price of amount sold
    
    $
    173,946Direct 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; or
    
    
    (17,565
    )Direct or indirect payments to others
    
    
    (2,488
    )Net offering proceeds to the issuer after deducting expenses
    
    
    153,893Purchases of real estate, equity investments in real estate and real estate related assets
    
    
    (44,281
    )Temporary investments in cash and cash equivalents
    
    $
    109,612
 
 (a)
    
    Excludes shares issued to affiliates, including our advisor, and excludes shares issued
pursuant to our distribution reinvestment and stock purchase plan. 
 Item 4.  Submission of Matters to a Vote of Security Holders
  Name of Director
    
    Shares Voting For
    
    Shares WithheldWm. Polk Carey
    
    
    4,589,969
    
    
    
    170,688Gordon F. DuGan
    
    
    4,584,956
    
    
    
    175,701Marshall E. Blume
    
    
    4,586,969
    
    
    
    173,688Elizabeth P. Munson
    
    
    4,584,469
    
    
    
    176,188Richard J. Pinola
    
    
    4,584,969
    
    
    
    175,688James D. Price
    
    
    4,586,709
    
    
    
    173,948
 
 Item 6.  Exhibits
 Exhibit No.
    
    Description
    
    Method of Filing10.1
    
    Form of Amended Selected Dealer Agreement by and between
Carey Financial, LLC and the selected dealers named therein
from time to time
    
    Incorporated by
reference to
Exhibit 10.1 to the
registrants
Registration
Statement on Form
S-11 (File No.
333-140842) filed
on August 1, 200810.2
    
    Amendment No. 1 to Advisory Agreement dated as of July 1,
2008 between Corporate Property Associates 17  Global
Incorporated and Carey Asset Management Corp.
    
    Incorporated by
reference to
Exhibit 10.6 to the
registrants
Registration
Statement on Form
S-11 (File No.
333-140842) filed
on August 1, 200810.3
    
    Form of Selected Investment Advisor Agreement by and among
Corporate Property Associates 17  Global Incorporated,
Carey Financial, LLC and the selected investment advisor
therein
    
    Incorporated by
reference to
Exhibit 10.8 to the
registrants
Registration
Statement on Form
S-11 (File No.
333-140842) filed
on August 1, 200810.4
    
    Asset Management Agreement dated as of July 1, 2008 between
Corporate Property Associates 17  Global Incorporated and
W. P. Carey & Co. B.V.
    
    Incorporated by
reference to
Exhibit 10.9 to the
registrants
Registration
Statement on Form
S-11 (File No.
333-140842) filed
on August 1, 2008
 CPA ® :17  Global 6/30/2008 10-Q 22




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Exhibit No.
    
    Description
    
    Method of Filing10.5
    
    Lease Agreement by and between BPLAST Landlord (DE) LLC, as
Landlord, and Berry Plastics Corporation, Berry Plastics
Holding Corporation and Berry Plastics Acquisition
Corporation VII, as Tenant, dated December 19, 2007
    
    Incorporated by
reference to
Exhibit 10.10 to
the registrants
Registration
Statement on Form
S-11 (File No.
333-140842) filed
on August 1, 200810.6
    
    Credit Agreement between BPLAST Landlord (DE) LLC as
Borrower, and JP Morgan Chase Bank, N.A. as Lender, dated
January 17, 2008
    
    Incorporated by
reference to
Exhibit 10.11 to
the registrants
Registration
Statement on Form
S-11 (File No.
333-140842) filed
on August 1, 200810.7
    
    Lease Agreement by and between Tech Landlord (GER) QRS
16-145, Inc., as Landlord, and Actebis Peacock GmbH, as
Tenant, dated April 18, 2008
    
    Incorporated by
reference to
Exhibit 10.12 to
the registrants
Registration
Statement on Form
S-11 (File No.
333-140842) filed
on August 1, 200810.8
    
    Loan Agreement by and between Tech Landlord (GER) LLC, as
Borrower, and Westdeutsche Immobilienbank AG, as Lender,
dated July 2008
    
    Incorporated by
reference to
Exhibit 10.13 to
the registrants
Registration
Statement on Form
S-11 (File No.
333-140842) filed
on August 1, 200810.9
    
    Form of Indemnification Agreement with independent directors
    
    Incorporated by
reference to
Exhibit 10.14 to
the registrants
Registration
Statement on Form
S-11 (File No.
333-140842) filed
on August 1, 200831.1
    
    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 6/30/2008 10-Q 23




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##### Table of Contents



SIGNATURES
  Corporate Property Associates 17  Global IncorporatedDate 8/14/2008
    By:
    /s/ Mark J. DeCesarisMark J. DeCesarisManaging Director and acting Chief Financial Officer
(acting Principal Financial Officer)Date 8/14/2008
    By:
    /s/ Thomas J. RidingsThomas J. RidingsExecutive Director and Chief Accounting Officer
(Principal Accounting Officer) CPA ® :17  Global 6/30/2008 10-Q 24