##### 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 September 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
    
    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 (Do not check if a smaller reporting company)
Smaller reporting company o o þ




---



##### 



INDEX
 Page No.PART I  FINANCIAL INFORMATIONItem 1. Financial Statements (Unaudited)Consolidated Balance Sheets
    
    
    2Consolidated Statements of Income
    
    
    3Consolidated Statements of Comprehensive Income (Loss)
    
    
    4Consolidated Statements of Equity
    
    
    5Consolidated Statements of Cash Flows
    
    
    6Notes to Consolidated Financial Statements
    
    
    7Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    20Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    28Item 4T. Controls and Procedures
    
    
    29PART II  OTHER INFORMATIONItem 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    30Item 6. Exhibits
    
    
    31Signatures
    
    
    32Exhibit 31.1Exhibit 31.2Exhibit 32
  Forward Looking Statements
  CPA ® :17  Global 9/30/2009 10-Q




---



##### 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)
 September 30, 2009
    
    
    December 31, 2008AssetsInvestments in real estate:Real estate, at cost
    
    $
    187,183
    
    
    $
    168,981Accumulated depreciation
    
    
    (4,581
    )
    
    
    (1,455
    )Net investments in properties
    
    
    182,602
    
    
    
    167,526Net investment in direct financing leases
    
    
    303,824
    
    
    
    83,924Real estate under construction
    
    
    44,894
    
    
    
    Equity investments in real estate
    
    
    44,231
    
    
    
    21,864Net investments in real estate
    
    
    575,551
    
    
    
    273,314Cash and cash equivalents
    
    
    300,003
    
    
    
    161,569Commercial mortgage-backed securities
    
    
    20,782
    
    
    
    20,309Intangible assets, net
    
    
    17,860
    
    
    
    18,291Deferred offering costs and other assets
    
    
    24,578
    
    
    
    5,589Total assets
    
    $
    938,774
    
    
    $
    479,072Liabilities and EquityLiabilities:Debt
    
    $
    275,593
    
    
    $
    133,633Accounts payable, accrued expenses and other liabilities
    
    
    4,837
    
    
    
    4,170Prepaid and deferred rental income
    
    
    6,974
    
    
    
    4,468Due to affiliates
    
    
    8,327
    
    
    
    4,797Distributions payable
    
    
    9,322
    
    
    
    4,507Total liabilities
    
    
    305,053
    
    
    
    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; 65,414,499
and
34,625,497 shares issued, respectively
    
    
    65
    
    
    
    35Additional paid-in capital
    
    
    586,395
    
    
    
    310,732Distributions in excess of accumulated earnings
    
    
    (24,449
    )
    
    
    (11,056
    )Accumulated other comprehensive loss
    
    
    (517
    )
    
    
    (2,288
    )561,494
    
    
    
    297,423Less, treasury stock at cost, 144,070 shares at September 30, 2009
    
    
    (1,340
    )
    
    
    Total CPA®:17  Global shareholders equity
    
    
    560,154
    
    
    
    297,423Noncontrolling interests
    
    
    73,567
    
    
    
    30,074Total equity
    
    
    633,721
    
    
    
    327,497Total liabilities and equity
    
    $
    938,774
    
    
    $
    479,072
  CPA ® :17  Global 9/30/2009 10-Q




---



##### 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
    
    
    Nine months endedSeptember 30,
    
    
    September 30,2009
    
    
    2008
    
    
    2009
    
    
    2008RevenuesRental income
    
    $
    4,452
    
    
    $
    2,307
    
    
    $
    13,185
    
    
    $
    2,319Interest income from direct financing leases
    
    
    8,311
    
    
    
    608
    
    
    
    20,515
    
    
    
    608Interest income from commercial mortgage-backed securities
    
    
    690
    
    
    
    675
    
    
    
    2,046
    
    
    
    98513,453
    
    
    
    3,590
    
    
    
    35,746
    
    
    
    3,912ExpensesDepreciation and amortization
    
    
    (1,374
    )
    
    
    (727
    )
    
    
    (3,640
    )
    
    
    (733
    )Property expenses
    
    
    425
    
    
    
    (280
    )
    
    
    (2,472
    )
    
    
    (341
    )General and administrative
    
    
    (518
    )
    
    
    (585
    )
    
    
    (2,581
    )
    
    
    (1,495
    )(1,467
    )
    
    
    (1,592
    )
    
    
    (8,693
    )
    
    
    (2,569
    )Other Income and ExpensesOther interest income
    
    
    43
    
    
    
    426
    
    
    
    212
    
    
    
    1,044Income from equity investments in real estate
    
    
    399
    
    
    
    142
    
    
    
    1,122
    
    
    
    194Other income and (expenses)
    
    
    (782
    )
    
    
    (439
    )
    
    
    (2,399
    )
    
    
    (439
    )Interest expense
    
    
    (2,974
    )
    
    
    (1,322
    )
    
    
    (7,107
    )
    
    
    (1,331
    )(3,314
    )
    
    
    (1,193
    )
    
    
    (8,172
    )
    
    
    (532
    )Income before income taxes
    
    
    8,672
    
    
    
    805
    
    
    
    18,881
    
    
    
    811Provision for income taxes
    
    
    (257
    )
    
    
    (83
    )
    
    
    (777
    )
    
    
    (83
    )Net Income
    
    
    8,415
    
    
    
    722
    
    
    
    18,104
    
    
    
    728Less: Net income attributable to noncontrolling interests
    
    
    (3,864
    )
    
    
    (115
    )
    
    
    (8,811
    )
    
    
    (115
    )Net Income Attributable to CPA®:17  Global Shareholders
    
    $
    4,551
    
    
    $
    607
    
    
    $
    9,293
    
    
    $
    613Earnings Per ShareNet income attributable to CPA®:17  Global shareholders
    
    $
    0.08
    
    
    $
    0.03
    
    
    $
    0.19
    
    
    $
    0.05Weighted Average Shares Outstanding
    
    
    58,804,027
    
    
    
    22,590,990
    
    
    
    48,082,751
    
    
    
    12,545,395Distributions Declared Per Share
    
    $
    0.1587
    
    
    $
    0.1390
    
    
    $
    0.4724
    
    
    $
    0.4140
  CPA ® :17  Global 9/30/2009 10-Q




---



##### Table of Contents



CORPORATE PROPERTY ASSOCIATES 17  GLOBAL INCORPORATED
 Consolidated Statements of Comprehensive Income (Loss) (Unaudited)  (in thousands)
 Three months ended
    
    
    Nine months endedSeptember 30,
    
    
    September 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Net Income
    
    $
    8,415
    
    
    $
    722
    
    
    $
    18,104
    
    
    $
    728Other Comprehensive Income:Foreign currency translation adjustment
    
    
    2,305
    
    
    
    (2,485
    )
    
    
    2,599
    
    
    
    (2,481
    )Change in unrealized loss on derivative instrument
    
    
    (701
    )
    
    
    
    
    
    
    (673
    )
    
    
    1,604
    
    
    
    (2,485
    )
    
    
    1,926
    
    
    
    (2,481
    )Comprehensive income (loss)
    
    
    10,019
    
    
    
    (1,763
    )
    
    
    20,030
    
    
    
    (1,753
    )Amounts Attributable to Noncontrolling Interests:Net income
    
    
    (3,864
    )
    
    
    (115
    )
    
    
    (8,811
    )
    
    
    (115
    )Foreign currency translation adjustment
    
    
    (512
    )
    
    
    737
    
    
    
    (470
    )
    
    
    737Change in unrealized loss on derivative instruments
    
    
    315
    
    
    
    
    
    
    
    315
    
    
    
    Comprehensive (income) loss attributable to
noncontrolling interests
    
    
    (4,061
    )
    
    
    622
    
    
    
    (8,966
    )
    
    
    622Comprehensive Income (Loss) Attributable to
CPA®:17
 Global Shareholders
    
    $
    5,958
    
    
    $
    (1,141
    )
    
    $
    11,064
    
    
    $
    (1,131
    )
  CPA ® :17
 Global 9/30/2009 10-Q




---



##### Table of Contents



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
    
    
    30,598,550
    
    
    
    30
    
    
    
    273,733
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    273,763
    
    
    
    
    
    
    
    273,763Shares issued to affiliates
    
    
    190,452
    
    
    
    
    
    
    
    1,930
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,930
    
    
    
    
    
    
    
    1,930Contributions
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    103,363
    
    
    
    103,363Distributions declared
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (22,686
    )
    
    
    
    
    
    
    
    
    
    
    (22,686
    )
    
    
    (68,836
    )
    
    
    (91,522
    )Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9,293
    
    
    
    
    
    
    
    
    
    
    
    9,293
    
    
    
    8,811
    
    
    
    18,104Other comprehensive income (loss):Foreign currency translation adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,129
    
    
    
    
    
    
    
    2,129
    
    
    
    470
    
    
    
    2,599Change in unrealized loss on
derivative instrument
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (358
    )
    
    
    
    
    
    
    (358
    )
    
    
    (315
    )
    
    
    (673
    )Repurchase of shares
    
    
    (144,070
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,340
    )
    
    
    (1,340
    )
    
    
    
    
    
    
    (1,340
    )Balance at September 30, 2009
    
    
    65,270,429
    
    
    $
    65
    
    
    $
    586,395
    
    
    $
    (24,449
    )
    
    $
    (517
    )
    
    $
    (1,340
    )
    
    $
    560,154
    
    
    $
    73,567
    
    
    $
    633,721
  CPA ® :17
 Global 9/30/2009 10-Q




---



##### Table of Contents



CORPORATE PROPERTY ASSOCIATES 17  GLOBAL INCORPORATED
 Consolidated Statements of Cash Flows (Unaudited)  (in thousands)
 Nine months ended September 30,2009
    
    
    2008Cash Flows  Operating ActivitiesNet income
    
    $
    18,104
    
    
    $
    728Adjustments to net income:Depreciation and amortization, including intangible assets
    
    
    3,467
    
    
    
    733Straight-line rent adjustments and amortization of rent-related intangibles
    
    
    (2,341
    )
    
    
    (66
    )Income from equity investment in real estate in excess of distributions received
    
    
    299
    
    
    
    (194
    )Issuance of shares to affiliate in satisfaction of fees due
    
    
    1,930
    
    
    
    216Amortization of discount on commercial mortgage-backed securities
    
    
    (489
    )
    
    
    (201
    )Realized loss on foreign currency transactions
    
    
    2,502
    
    
    
    253Unrealized loss on derivative instrument
    
    
    
    
    
    
    186Increase in accounts receivable and prepaid expenses
    
    
    (3,747
    )
    
    
    (279
    )Increase in accounts payable and accrued expenses
    
    
    983
    
    
    
    1,549Increase in prepaid and deferred rental income
    
    
    1,260
    
    
    
    1,990Increase (decrease) in due to affiliates
    
    
    206
    
    
    
    (2,679
    )Change in other operating assets and liabilities, net
    
    
    559
    
    
    
    (286
    )Net cash provided by operating activities
    
    
    22,733
    
    
    
    1,950Cash Flows  Investing ActivitiesDistributions from equity investments in real estate in excess of equity income
    
    
    1,936
    
    
    
    Acquisitions of real estate and direct financing lease (a)
    
    
    (274,049
    )
    
    
    (235,362
    )Contributions to equity investments in real estate (a)
    
    
    (22,798
    )
    
    
    (22,784
    )Value added taxes recoverable on purchases of real estate
    
    
    (2,618
    )
    
    
    Purchase of marketable securities
    
    
    
    
    
    
    (19,965
    )Funds for future investments and construction placed in escrow
    
    
    (85,022
    )
    
    
    Funds for future investments released from escrow
    
    
    75,934
    
    
    
    Payment of deferred acquisition fees to an affiliate
    
    
    (1,446
    )
    
    
    (290
    )Net cash used in investing activities
    
    
    (308,063
    )
    
    
    (278,401
    )Cash Flows  Financing ActivitiesDistributions paid
    
    
    (17,871
    )
    
    
    (2,055
    )Contributions from noncontrolling interests
    
    
    103,363
    
    
    
    16,204Distributions to noncontrolling interests
    
    
    (68,836
    )
    
    
    Proceeds from mortgage notes payable
    
    
    143,150
    
    
    
    139,685Scheduled payments of mortgage principal
    
    
    (3,192
    )
    
    
    (59
    )Payment of mortgage deposits, net of deposits refunded
    
    
    (3,892
    )
    
    
    Proceeds from issuance of shares, net of offering costs
    
    
    273,763
    
    
    
    248,676Purchase of treasury stock
    
    
    (1,340
    )
    
    
    Net cash provided by financing activities
    
    
    425,145
    
    
    
    402,451Change in Cash and Cash Equivalents During the PeriodEffect of exchange rate changes on cash
    
    
    (1,381
    )
    
    
    (358
    )Net increase in cash and cash equivalents
    
    
    138,434
    
    
    
    125,642Cash and cash equivalents, beginning of period
    
    
    161,569
    
    
    
    183Cash and cash equivalents, end of period
    
    $
    300,003
    
    
    $
    125,825
 Noncash investing and financing activitites:
 (a)
    
    The cost basis of real estate investments acquired during the nine months ended September 30,
2009 and 2008, including equity investments in real estate, also includes deferred acquisition
fees payable of $4.7 million and $4.6 million, respectively.  CPA ® :17
 Global 9/30/2009 10-Q




---



##### 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
    CPA ® :17  Global 9/30/2009 10-Q




---



##### Table of Contents



Notes to Consolidated Financial Statements
 Basis of Consolidation
  Information about International Geographic Areas
  Future Accounting Requirements
  Note 3. Agreements and Transactions with Related Parties
  Transaction Fees
    CPA ® :17  Global 9/30/2009 10-Q




---



##### Table of Contents



Notes to Consolidated Financial Statements
 Asset Management Fee and Cash Distributions
   Organization and Offering Expenses
   Other Expenses
  Joint Ventures and Other Transactions with Affiliates
  CPA ® :17  Global 9/30/2009 10-Q




---



##### Table of Contents



Notes to Consolidated Financial Statements
   Note 4. Real Estate
 Real Estate
  September 30, 2009
    
    
    December 31, 2008Land
    
    $
    37,261
    
    
    $
    36,817Buildings
    
    
    149,922
    
    
    
    132,164Less: Accumulated depreciation
    
    
    (4,581
    )
    
    
    (1,455
    )$
    182,602
    
    
    $
    167,526
 Acquisitions of Real Estate and Real Estate Under Construction
   Other
   CPA ® :17  Global 9/30/2009 10-Q




---



##### Table of Contents



Notes to Consolidated Financial Statements
 Note 5. Net Investment in Direct Financing Leases
  September 30, 2009
    
    
    December 31, 2008Minimum lease payments receivable
    
    $
    599,040
    
    
    $
    148,636Unguaranteed residual value
    
    
    302,783
    
    
    
    83,991901,823
    
    
    
    232,627Less: unearned income
    
    
    (597,999
    )
    
    
    (148,703
    )$
    303,824
    
    
    $
    83,924
  2009 (remainder)
    
    $
    9,1972010
    
    
    31,5112011
    
    
    32,1702012
    
    
    32,5432013
    
    
    32,921Thereafter through 2028
    
    
    460,698
  Acquisitions of Net Investments in Direct Financing Leases
 ®
  Note 6. Equity Investments in Real Estate
  Berry Plastics
  CPA ® :17  Global 9/30/2009 10-Q




---



##### Table of Contents



Notes to Consolidated Financial Statements
 Tesco plc
   September 30, 2009
    
    
    December 31, 2008Assets
    
    $
    187,811
    
    
    $
    85,177Liabilities
    
    
    (85,400
    )
    
    
    (40,073
    )Partners/members equity
    
    $
    102,411
    
    
    $
    45,104
 Three months ended September 30,
    
    
    Nine months ended September 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Revenue
    
    $
    3,157
    
    
    $
    1,660
    
    
    $
    6,480
    
    
    $
    4,999Expenses
    
    
    (2,435
    )
    
    
    (1,381
    )
    
    
    (5,133
    )
    
    
    (4,000
    )Gain on extinguishment of debt
    
    
    
    
    
    
    
    
    
    
    6,512
    
    
    
    Net income
    
    $
    722
    
    
    $
    279
    
    
    $
    7,859
    
    
    $
    999
  Note 7. Acquisitions of Real Estate
   CPA ® :17  Global 9/30/2009 10-Q




---



##### Table of Contents



Notes to Consolidated Financial Statements
  Note 8. Securities Held to Maturity
  Description
    
    Face Value
    
    
    Amortized Cost
    
    
    Unrealized Loss
    
    
    Estimated Fair ValueCMBS
    
    $
    33,284
    
    
    $
    20,782
    
    
    $
    (17,088
    )
    
    $
    3,694
   Rating(a)
    
    Amortized CostA
    
    $
    1,503A-
    
    
    9,006B
    
    
    2,855B+
    
    
    1,597BB-
    
    
    3,962BBB+
    
    
    1,859$
    20,782
 (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 9/30/2009 10-Q




---



##### Table of Contents



Notes to Consolidated Financial Statements
   Fair Value Measurements at Reporting Date Using:Quoted Prices inActive Markets for
    
    
    Significant Other
    
    
    UnobservableIdentical Assets
    
    
    Observable Inputs
    
    
    InputsDescription
    
    September 30, 2009
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Assets:Money market funds
    
    $
    277,064
    
    
    $
    277,064
    
    
    $
    
    
    
    $
    Derivative assets
    
    
    2,744
    
    
    
    
    
    
    
    2,744
    
    
    
    $
    279,808
    
    
    $
    277,064
    
    
    $
    2,744
    
    
    $
    Liabilities:Derivative liabilities
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
  Fair Value Measurements Using Significant Unobservable Inputs(Level 3 only)Derivative AssetsThree months ended
    
    
    Nine months endedSeptember 30, 2008
    
    
    September 30, 2008Beginning balance
    
    $
    
    
    
    $
    Total gains or losses (realized and unrealized):Included in earnings
    
    
    (186
    )
    
    
    (186
    )Included in other comprehensive income
    
    
    
    
    
    
    Amortization and accretion
    
    
    
    
    
    
    Purchases, issuances, and settlements
    
    
    1,363
    
    
    
    1,363Ending balance
    
    $
    1,177
    
    
    $
    1,177The amount of total gains or losses for the period included in
earnings attributable to the change in unrealized gains or
losses relating to assets still held at the reporting date
    
    $
    (186
    )
    
    $
    (186
    )
   CPA ® :17  Global 9/30/2009 10-Q




---



##### Table of Contents



Notes to Consolidated Financial Statements
  September 30, 2009
    
    
    December 31, 2008Carrying Value
    
    
    Fair Value
    
    
    Carrying Value
    
    
    Fair ValueDebt
    
    $
    275,593
    
    
    $
    262,495
    
    
    $
    133,633
    
    
    $
    133,436CMBS (a)
    
    
    20,782
    
    
    
    3,694
    
    
    
    20,309
    
    
    
    4,562
 
 (a)
    
    Carrying value represents historical cost for CMBS.  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 9/30/2009 10-Q




---



##### Table of Contents



Notes to Consolidated Financial Statements
     Amount of Gain (Loss) Recognized inOCI on Derivative (Effective Portion)Three months ended
    
    
    Nine months endedDerivatives in Cash Flow Hedging Relationships
    
    September 30, 2009
    
    
    September 30, 2009Interest rate cap (a)
    
    $
    (700
    )
    
    $
    (700
    )Total
    
    $
    (700
    )
    
    $
    (700
    )
 Amount of Gain (Loss) Recognized in Income on DerivativesDerivatives not in Cash Flow
    
    Location of Gain (Loss)
    
    
    Three months ended
    
    
    Nine months endedHedging Relationships
    
    Recognized in Income
    
    
    September 30, 2008
    
    
    September 30, 2008Embedded credit derivative (b)
    
    Other income and (expenses)
    
    $
    (186
    )
    
    $
    (186
    )Total
    
    
    
    
    
    $
    (186
    )
    
    $
    (186
    )
 
 (a)
    
    For both the three and nine months ended September 30, 2009, losses of $0.3 million were
attributable to noncontrolling interests.(b)
    
    For both the three and nine months ended September 30, 2008, losses of $0.1 million were
attributable to noncontrolling interests. No gains or losses were recognized in income related
to this embedded credit derivative during 2009.  Interest Rate Caps
  CPA ® :17  Global 9/30/2009 10-Q




---



##### Table of Contents



Notes to Consolidated Financial Statements
   Embedded Credit Derivative
  Other
   Portfolio Concentration Risk
    CPA ® :17  Global 9/30/2009 10-Q




---



##### Table of Contents



Notes to Consolidated Financial Statements
  Note 11. Debt
   Total2009 (remainder)
    
    $
    1,3022010
    
    
    5,3852011
    
    
    5,7172012
    
    
    6,0642013
    
    
    6,428Thereafter through 2028
    
    
    250,697Total
    
    $
    275,593
 Financing Activity
   Note 12. Income Taxes
  CPA ® :17  Global 9/30/2009 10-Q




---



##### Table of Contents



Notes to Consolidated Financial Statements
  Note 13. Pro Forma Financial Information
   Three months ended September 30,
    
    
    Nine months ended September 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Pro forma total revenues
    
    $
    13,368
    
    
    $
    14,397
    
    
    $
    40,358
    
    
    $
    40,960Pro forma net income
    
    $
    7,278
    
    
    $
    7,674
    
    
    $
    19,166
    
    
    $
    21,689Less: Net income attributable to noncontrolling
interests
    
    
    (3,238
    )
    
    
    (3,501
    )
    
    
    (8,259
    )
    
    
    (10,159
    )Pro forma net income attributable to CPA®:17 
Global shareholders
    
    $
    4,040
    
    
    $
    4,173
    
    
    $
    10,907
    
    
    $
    11,530Pro forma earnings per share:Net income attributable to CPA®:17  Global
shareholders
    
    $
    0.06
    
    
    $
    0.06
    
    
    $
    0.17
    
    
    $
    0.18
  Note 14. Subsequent Event
   CPA ® :17  Global 9/30/2009 10-Q




---



##### Table of Contents



Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
  Business Overview
  Financial Highlights
 Three months ended September 30,
    
    
    Nine months ended September 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Total revenues
    
    $
    13,453
    
    
    $
    3,590
    
    
    $
    35,746
    
    
    $
    3,912Net income attributable to CPA®:17  Global
shareholders (a)
    
    
    4,551
    
    
    
    607
    
    
    
    9,293
    
    
    
    613Cash flow provided by operating activities (a)
    
    
    
    
    
    
    
    
    
    
    22,733
    
    
    
    1,950
 (a)
    
    For the three and nine months ended September 30, 2009, net income attributable to
CPA®: 17  Global shareholders and cash flow provided by operating activities
reflect the results of our investment activity during 2009 and 2008.   Current Trends
  Investment Opportunities
  CPA ® :17  Global 9/30/2009 10-Q




---



##### Table of Contents



Financing Conditions
   Corporate Defaults
    CPA ® :17  Global 9/30/2009 10-Q




---



##### Table of Contents



Fundraising
  Commercial Mortgage-Backed Securities
   Other Factors
   Results of Operations
   CPA ® :17  Global 9/30/2009 10-Q




---



##### Table of Contents



Nine months ended September 30,2009
    
    
    2008Rental income
    
    $
    13,185
    
    
    $
    2,319Interest income from direct financing leases
    
    
    20,515
    
    
    
    608$
    33,700
    
    
    $
    2,927
  Nine months ended September 30,Lessee (Date Acquired)
    
    2009
    
    
    2008The New York Times Company (3/2009) (a)
    
    $
    15,034
    
    
    $
    LifeTime Fitness, Inc. (9/2008)
    
    
    5,134
    
    
    
    77Frontier Spinning Mills, Inc. (12/2008) (a)
    
    
    3,350
    
    
    
    Actebis Peacock GmbH (7/2008) (a) (b)
    
    
    3,044
    
    
    
    1,088Wagon Automotive GmbH and Wagon Automotive Nagold GmbH (8/2008) (a) (b) (c)
    
    
    2,857
    
    
    
    723Laureate Education, Inc. (7/2008)
    
    
    2,171
    
    
    
    540Sabre Communications Corporation and Cellxion, LLC (8/2008)
    
    
    1,934
    
    
    
    428Flexmag Industries, Inc. (2/2008)
    
    
    176
    
    
    
    71$
    33,700
    
    
    $
    2,927
 (a)
    
    These revenues are generated in consolidated ventures with our affiliates and include lease
revenues applicable to noncontrolling interests totaling $10.0 million and $0.6 million for
the nine months ended September 30, 2009 and 2008, respectively.(b)
    
    Amounts are subject to fluctuations in foreign currency exchange rates.(c)
    
    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 briefly ceased making rent payments during the second
quarter of 2009, it subsequently resumed paying rent to us substantially in accordance with
the terms stated in its lease. In October 2009, we terminated the existing lease and signed a
new lease with Wagon Automotive Nagold GmbH on substantially the same terms (Note 10). Lease Revenues
   Interest Income from Commercial Mortgage-Backed Securities
   CPA ® :17  Global 9/30/2009 10-Q




---



##### Table of Contents



Depreciation and Amortization
  Property Expenses
   General and Administrative Expense
   Other Interest Income
  Income from Equity Investments in Real Estate
   Other Income and Expenses
  CPA ® :17  Global 9/30/2009 10-Q




---



##### Table of Contents



Interest Expense
  Provision for Income Taxes
  Net Income Attributable to Noncontrolling Interests
   Net Income Attributable to CPA ® :17  Global Shareholders   ®
 Financial Condition
  Operating Activities
  Investing Activities
  CPA ® :17  Global 9/30/2009 10-Q




---



##### Table of Contents



Financing Activities
    Summary of Financing
  September 30, 2009
    
    
    December 31, 2008BalanceFixed rate
    
    $
    155,843
    
    
    $
    133,633Variable rate (a)
    
    
    119,750
    
    
    
    Total
    
    $
    275,593
    
    
    $
    133,633Percent of total debtFixed rate
    
    
    57
    %
    
    
    100
    %Variable rate (a)
    
    
    43
    %
    
    
    0
    %100
    %
    
    
    100
    %Weighted average interest rate at end of periodFixed rate
    
    
    7.1
    %
    
    
    6.9
    %Variable rate (a)
    
    
    5.1
    %
    
    
    N/A
 (a)
    
    Variable rate debt at September 30, 2009 consisted entirely of debt that is subject to an
interest rate cap, but the applicable interest rate for such debt was below the interest rate
cap at September 30, 2009. Cash Resources
  CPA ® :17  Global 9/30/2009 10-Q




---



##### Table of Contents



Cash Requirements
  Off-Balance Sheet Arrangements and Contractual Obligations
  Less than
    
    
    
    
    
    
    
    
    
    
    More thanTotal
    
    
    1 Year
    
    
    1-3 Years
    
    
    3-5 Years
    
    
    5 yearsNon-recourse and limited-recourse debt  principal
    
    $
    275,593
    
    
    $
    5,304
    
    
    $
    11,609
    
    
    $
    119,539
    
    
    $
    139,141Deferred acquisition fees
    
    
    6,769
    
    
    
    3,252
    
    
    
    3,517
    
    
    
    
    
    
    
    Interest on borrowings and deferred acquisition fees
    
    
    119,662
    
    
    
    17,313
    
    
    
    33,197
    
    
    
    31,578
    
    
    
    37,574Build-to-suit commitments (b)
    
    
    4,717
    
    
    
    4,717
    
    
    
    
    
    
    
    
    
    
    
    Operating and other lease commitments (c)
    
    
    636
    
    
    
    86
    
    
    
    178
    
    
    
    184
    
    
    
    188$
    407,377
    
    
    $
    30,672
    
    
    $
    48,501
    
    
    $
    151,301
    
    
    $
    176,903
 (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 project in Glendale Heights, IN.
Estimated total construction costs for the project are currently projected to be $31.0
million, of which $26.3 million was funded as of September 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.   OwnershipInterest at
    
    
    
    
    
    
    Total ThirdLessee
    
    September 30, 2009
    
    
    Total Assets
    
    
    Party Debt
    
    
    Maturity DateBerry Plastics
    
    
    50
    %
    
    $
    86,735
    
    
    $
    29,000
    
    
    
    3/2012Tesco plc (a)
    
    
    49
    %
    
    
    101,076
    
    
    
    51,007
    
    
    
    6/2016$
    187,811
    
    
    $
    80,007
 (a)
    
    Dollar amounts shown are based on the exchange rate of the Euro as of September 30, 2009. We
acquired this investment in July 2009. Subsequent Event
  CPA ® :17  Global 9/30/2009 10-Q




---



##### Table of Contents



Item 3. Quantitative and Qualitative Disclosures About Market Risk
 Market Risk
   Interest Rate Risk
       CPA ® :17  Global 9/30/2009 10-Q




---



##### Table of Contents



2009
    
    
    2010
    
    
    2011
    
    
    2012
    
    
    2013
    
    
    Thereafter
    
    
    Total
    
    
    Fair valueFixed rate debt
    
    $
    706
    
    
    $
    2,924
    
    
    $
    3,127
    
    
    $
    3,339
    
    
    $
    3,560
    
    
    $
    142,187
    
    
    $
    155,843
    
    
    $
    142,745Variable rate debt
    
    $
    596
    
    
    $
    2,461
    
    
    $
    2,590
    
    
    $
    2,725
    
    
    $
    2,868
    
    
    $
    108,510
    
    
    $
    119,750
    
    
    $
    119,750
  Foreign Currency Exchange Rate Risk
   
 Item 4T. Controls and Procedures
 Disclosure Controls and Procedures
   Changes in Internal Control over Financial Reporting
  CPA ® :17  Global 9/30/2009 10-Q




---



##### Table of Contents



PART II
 
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
   Shares registered
    
    
    200,000,000Aggregate price of offering amount registered
    
    $
    2,000,000Shares sold (a)
    
    
    63,935,125Aggregated offering price of amount sold
    
    $
    638,835Direct 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
    
    
    (63,791
    )Direct or indirect payments to others
    
    
    (7,267
    )Net offering proceeds to the issuer after deducting expenses
    
    
    567,777Purchases of real estate related assets
    
    
    (205,044
    )Temporary investments in cash and cash equivalents
    
    $
    362,733
 (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)July
    
    
    
    
    
    
    
    
    
    
    N/A
    
    
    
    N/AAugust
    
    
    
    
    
    
    
    
    
    
    N/A
    
    
    
    N/ASeptember
    
    
    82,563
    
    
    $
    9.30
    
    
    
    N/A
    
    
    
    N/ATotal
    
    
    82,563
 (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. CPA ® :17  Global 9/30/2009 10-Q




---



##### Table of Contents



Item 6. Exhibits
 Exhibit No.
    
    Description
    
    Method of Filing10.1
    
    Amended and Restated
Advisory Agreement dated as
of October 1, 2009 among
Corporate Property
Associates 17Global
Incorporated, CPA:17
Limited Partnership and
Carey Asset Management
Corp.
    
    Incorporated by reference
to Registration Statement
on Form S-11 (File No.
333-140842) filed November
4, 200931.1
    
    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 9/30/2009 10-Q




---



##### Table of Contents



SIGNATURES
  Corporate Property Associates 17  Global IncorporatedDate 11/13/2009
    By:
    /s/ Mark J. DeCesarisMark J. DeCesarisManaging Director and Acting Chief Financial Officer
(Principal Financial Officer)Date 11/13/2009
    By:
    /s/ Thomas J. Ridings, Jr.Thomas J. Ridings, Jr.Executive Director and Chief Accounting Officer
(Principal Accounting Officer) CPA ® :17  Global 9/30/2009 10-Q