##### 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 March 31, 2010
 or
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to
 Commission File Number: 000-52891
 
 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




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##### 



INDEX
 Page No.PART I  FINANCIAL INFORMATIONItem 1. Financial Statements (Unaudited)Consolidated Balance Sheets
    
    
    2Consolidated Statements of Income
    
    
    3Consolidated Statements of Comprehensive 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
    
    
    29Item 4. Controls and Procedures
    
    
    30PART II  OTHER INFORMATIONItem 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    31Item 6. Exhibits
    
    
    32Signatures
    
    
    33Exhibit 31.1Exhibit 31.2Exhibit 32
 Forward Looking Statements
    CPA®:17  Global 3/31/2010 10-Q 1




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##### Table of Contents



PART I
 
 Item 1.
    
    Financial Statements
 CORPORATE PROPERTY ASSOCIATES 17  GLOBAL INCORPORATED
 
 CONSOLIDATED BALANCE SHEETS
(UNAUDITED)  (in thousands, except share and per share amounts)
 March 31, 2010
    
    
    December 31, 2009AssetsInvestments in real estate:Real estate, at cost
    
    $
    411,258
    
    
    $
    326,507Accumulated depreciation
    
    
    (7,726
    )
    
    
    (5,957
    )Net investments in properties
    
    
    403,532
    
    
    
    320,550Net investment in direct financing leases
    
    
    357,220
    
    
    
    303,250Real estate under construction
    
    
    
    
    
    
    31,037Equity investments in real estate
    
    
    42,039
    
    
    
    43,495Net investments in real estate
    
    
    802,791
    
    
    
    698,332Cash and cash equivalents
    
    
    337,857
    
    
    
    281,554Intangible assets, net
    
    
    77,178
    
    
    
    46,666Other assets, net
    
    
    37,688
    
    
    
    41,320Total assets
    
    $
    1,255,514
    
    
    $
    1,067,872Liabilities and EquityLiabilities:Debt
    
    $
    366,650
    
    
    $
    300,908Accounts payable, accrued expenses and other liabilities
    
    
    6,179
    
    
    
    4,533Prepaid and deferred rental income
    
    
    16,272
    
    
    
    13,236Due to affiliates
    
    
    11,709
    
    
    
    8,383Distributions payable
    
    
    13,945
    
    
    
    11,675Total liabilities
    
    
    414,755
    
    
    
    338,735Commitments and contingencies (Note 11)Equity: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; 94,818,474 and
80,135,401 shares issued, respectively
    
    
    97
    
    
    
    82Additional paid-in capital
    
    
    848,714
    
    
    
    718,057Distributions in excess of accumulated earnings
    
    
    (60,940
    )
    
    
    (53,118
    )Accumulated other comprehensive loss
    
    
    (14,874
    )
    
    
    (4,902
    )772,997
    
    
    
    660,119Less, treasury stock at cost, 354,702 and 248,833 shares, respectively
    
    
    (3,298
    )
    
    
    (2,314
    )Total
CPA®:17
 Global shareholders equity
    
    
    769,699
    
    
    
    657,805Noncontrolling interests
    
    
    71,060
    
    
    
    71,332Total equity
    
    
    840,759
    
    
    
    729,137Total liabilities and equity
    
    $
    1,255,514
    
    
    $
    1,067,872
 Note:
    
    Substantially all our assets and liabilities are held through our operating partnership.
See Note 2 for further information.
   CPA®:17  Global 3/31/2010 10-Q 2




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##### Table of Contents



CORPORATE PROPERTY ASSOCIATES 17  GLOBAL INCORPORATED
 
 CONSOLIDATED
STATEMENTS OF INCOME (UNAUDITED)  (in thousands, except share and per share amounts)
 Three months ended March 31,2010
    
    
    2009RevenuesRental income
    
    $
    8,412
    
    
    $
    4,271Interest income from direct financing leases
    
    
    9,367
    
    
    
    3,765Interest income from commercial mortgage-backed securities
    
    
    517
    
    
    
    67318,296
    
    
    
    8,709ExpensesDepreciation and amortization
    
    
    (2,332
    )
    
    
    (1,086
    )General and administrative
    
    
    (977
    )
    
    
    (1,242
    )Property expenses
    
    
    (1,195
    )
    
    
    (1,362
    )(4,504
    )
    
    
    (3,690
    )Other Income and ExpensesIncome from equity investments in real estate
    
    
    398
    
    
    
    391Other income and (expenses)
    
    
    64
    
    
    
    (1,562
    )Interest expense
    
    
    (5,316
    )
    
    
    (2,092
    )(4,854
    )
    
    
    (3,263
    )Income before income taxes
    
    
    8,938
    
    
    
    1,756Benefit from (provision for) income taxes
    
    
    468
    
    
    
    (241
    )Net Income
    
    
    9,406
    
    
    
    1,515Less: Net income attributable to noncontrolling interests
    
    
    (3,283
    )
    
    
    (1,217
    )Net Income Attributable to CPA®:17  Global Shareholders
    
    $
    6,123
    
    
    $
    298Earnings Per ShareNet income attributable to CPA®:17  Global shareholders
    
    $
    0.07
    
    
    $
    0.01Weighted Average Shares Outstanding
    
    
    87,261,461
    
    
    
    38,152,272Distributions Declared Per Share
    
    $
    0.1600
    
    
    $
    0.1562
   CPA®:17  Global 3/31/2010 10-Q 3




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##### Table of Contents



CORPORATE PROPERTY ASSOCIATES 17  GLOBAL INCORPORATED
 
 CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED)  (in thousands)
 Three months ended March 31,2010
    
    
    2009Net Income
    
    $
    9,406
    
    
    $
    1,515Other Comprehensive Loss:Foreign currency translation adjustment
    
    
    (9,643
    )
    
    
    (2,461
    )Change in unrealized loss on derivative instrument
    
    
    (1,490
    )
    
    
    (2
    )(11,133
    )
    
    
    (2,463
    )Comprehensive loss
    
    
    (1,727
    )
    
    
    (948
    )Amounts Attributable to Noncontrolling Interests:Net income
    
    
    (3,283
    )
    
    
    (1,217
    )Foreign currency translation adjustment
    
    
    638
    
    
    
    795Change in unrealized loss on derivative instruments
    
    
    523
    
    
    
    Comprehensive income attributable to noncontrolling interests
    
    
    (2,122
    )
    
    
    (422
    )Comprehensive Loss Attributable to CPA®:17  Global Shareholders
    
    $
    (3,849
    )
    
    $
    (1,370
    )
   CPA®:17  Global 3/31/2010 10-Q 4




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##### 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
    
    
    Stock
    
    
    Shareholders
    
    
    Interests
    
    
    TotalBalance at January 1, 2009
    
    
    34,625,497
    
    
    $
    35
    
    
    $
    310,732
    
    
    $
    (11,056
    )
    
    $
    (2,288
    )
    
    $
    
    
    
    $
    297,423
    
    
    $
    30,074
    
    
    $
    327,497Shares issued, net of
offering costs
    
    
    45,244,803
    
    
    
    45
    
    
    
    404,651
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    404,696
    
    
    
    
    
    
    
    404,696Shares issued to affiliates
    
    
    265,101
    
    
    
    2
    
    
    
    2,674
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,676
    
    
    
    
    
    
    
    2,676Contributions from
noncontrolling interests
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    103,364
    
    
    
    103,364Distributions declared
($0.6324 per share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (34,361
    )
    
    
    
    
    
    
    
    
    
    
    (34,361
    )
    
    
    
    
    
    
    (34,361
    )Distributions to
noncontrolling interests
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (71,946
    )
    
    
    (71,946
    )Net loss (income)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (7,701
    )
    
    
    
    
    
    
    
    
    
    
    (7,701
    )
    
    
    9,881
    
    
    
    2,180Other comprehensive loss:Foreign currency
translation adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (848
    )
    
    
    
    
    
    
    (848
    )
    
    
    166
    
    
    
    (682
    )Change in unrealized loss
on derivative instrument
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (261
    )
    
    
    
    
    
    
    (261
    )
    
    
    (207
    )
    
    
    (468
    )Impairment loss on
commercial mortgage-backed securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,505
    )
    
    
    
    
    
    
    (1,505
    )
    
    
    
    
    
    
    (1,505
    )Repurchase of shares
    
    
    (248,833
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,314
    )
    
    
    (2,314
    )
    
    
    
    
    
    
    (2,314
    )Balance at December 31, 2009
    
    
    79,886,568
    
    
    
    82
    
    
    
    718,057
    
    
    
    (53,118
    )
    
    
    (4,902
    )
    
    
    (2,314
    )
    
    
    657,805
    
    
    
    71,332
    
    
    
    729,137Shares issued, net of
offering costs
    
    
    14,621,409
    
    
    
    15
    
    
    
    130,040
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    130,055
    
    
    
    
    
    
    
    130,055Shares issued to affiliates
    
    
    61,664
    
    
    
    
    
    
    
    617
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    617
    
    
    
    
    
    
    
    617Distributions declared
($0.1600 per share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (13,945
    )
    
    
    
    
    
    
    
    
    
    
    (13,945
    )
    
    
    (2,394
    )
    
    
    (16,339
    )Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,123
    
    
    
    
    
    
    
    
    
    
    
    6,123
    
    
    
    3,283
    
    
    
    9,406Other comprehensive loss:Foreign currency
translation adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (9,005
    )
    
    
    
    
    
    
    (9,005
    )
    
    
    (638
    )
    
    
    (9,643
    )Change in unrealized loss
on derivative instrument
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (967
    )
    
    
    
    
    
    
    (967
    )
    
    
    (523
    )
    
    
    (1,490
    )Repurchase of shares
    
    
    (105,869
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (984
    )
    
    
    (984
    )
    
    
    
    
    
    
    (984
    )Balance at March 31, 2010
    
    
    94,463,772
    
    
    $
    97
    
    
    $
    848,714
    
    
    $
    (60,940
    )
    
    $
    (14,874
    )
    
    $
    (3,298
    )
    
    $
    769,699
    
    
    $
    71,060
    
    
    $
    840,759
   CPA®:17  Global 3/31/2010 10-Q 5




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##### Table of Contents



CORPORATE PROPERTY ASSOCIATES 17  GLOBAL INCORPORATED
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS

 (UNAUDITED)  (in thousands)
 Three months ended March 31,2010
    
    
    2009Cash Flows  Operating ActivitiesNet income
    
    $
    9,406
    
    
    $
    1,515Adjustments to net income:Depreciation and amortization, including intangible assets
    
    
    2,334
    
    
    
    1,086Straight-line rent adjustments and amortization of rent-related intangibles
    
    
    (1,157
    )
    
    
    (520
    )Income from equity investment in real estate in excess of distributions received
    
    
    (56
    )
    
    
    (256
    )Issuance of shares to affiliate in satisfaction of fees due
    
    
    617
    
    
    
    458Amortization of discount on commercial mortgage-backed securities
    
    
    
    
    
    
    156Realized loss on foreign currency transactions
    
    
    
    
    
    
    1,692Unrealized loss on foreign currency transactions
    
    
    65
    
    
    
    Allowance for uncollectible amounts
    
    
    
    
    
    
    878Increase in accounts receivable and prepaid expenses
    
    
    (587
    )
    
    
    (958
    )Increase in accounts payable and accrued expenses
    
    
    841
    
    
    
    43Increase (decrease) in prepaid and deferred rental income
    
    
    3,287
    
    
    
    (665
    )Increase in due to affiliates
    
    
    2,015
    
    
    
    177Change in other operating assets and liabilities, net
    
    
    (1,435
    )
    
    
    (131
    )Net cash provided by operating activities
    
    
    15,330
    
    
    
    3,475Cash Flows  Investing ActivitiesDistributions received from equity investments in real estate in excess of equity income
    
    
    332
    
    
    
    Acquisitions of real estate and direct financing leases and other capital expenditures (a)
    
    
    (147,311
    )
    
    
    (245,447
    )Contributions to equity investments in real estate (a)
    
    
    (60
    )
    
    
    (2,125
    )Value added taxes recoverable on purchases of real estate
    
    
    (1,142
    )
    
    
    Repayment of notes receivable
    
    
    7,000
    
    
    
    Funds for construction released from escrow
    
    
    186
    
    
    
    Payment of deferred acquisition fees to an affiliate
    
    
    (1,133
    )
    
    
    (155
    )Net cash used in investing activities
    
    
    (142,128
    )
    
    
    (247,727
    )Cash Flows  Financing ActivitiesDistributions paid
    
    
    (11,675
    )
    
    
    (4,507
    )Contributions from noncontrolling interests
    
    
    
    
    
    
    103,363Distributions to noncontrolling interests
    
    
    (2,394
    )
    
    
    (886
    )Proceeds from mortgage notes payable
    
    
    71,678
    
    
    
    Scheduled payments of mortgage principal
    
    
    (1,357
    )
    
    
    (759
    )Payment of mortgage deposits, net of deposits refunded
    
    
    (1,662
    )
    
    
    Proceeds from issuance of shares, net of offering costs
    
    
    130,055
    
    
    
    65,927Purchase of treasury stock
    
    
    (984
    )
    
    
    (83
    )Net cash provided by financing activities
    
    
    183,661
    
    
    
    163,055Change in Cash and Cash Equivalents During the PeriodEffect of exchange rate changes on cash
    
    
    (560
    )
    
    
    (1,675
    )Net increase (decrease) in cash and cash equivalents
    
    
    56,303
    
    
    
    (82,872
    )Cash and cash equivalents, beginning of period
    
    
    281,554
    
    
    
    161,569Cash and cash equivalents, end of period
    
    $
    337,857
    
    
    $
    78,697
 Noncash investing and financing activities:
 (a)
    
    The cost basis of real estate investments acquired during the three months ended March
31, 2010 and 2009, including equity investments in real estate, also includes deferred
acquisition fees payable of $3.0 million and $3.3 million, respectively.   CPA®:17  Global 3/31/2010 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 3/31/2010 10-Q 7




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Notes to Consolidated Financial Statements
      CPA®:17  Global 3/31/2010 10-Q 8




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##### Table of Contents



Notes to Consolidated Financial Statements
  March 31, 2010
    
    
    December 31, 2009Assets:Cash and cash equivalents not attributable to consolidated VIE
    
    $
    1,449
    
    
    $
    61Other assets, net not attributable to consolidated VIE
    
    
    4,820
    
    
    
    4,307Total assets not attributable to consolidated VIE
    
    $
    6,269
    
    
    $
    4,368Liabilities:Due to affiliates not attributable to consolidated VIE
    
    $
    1,162
    
    
    $
    170Distributions payable not attributable to consolidated VIE
    
    
    13,945
    
    
    
    11,675Total liabilities not attributable to consolidated VIE
    
    $
    15,107
    
    
    $
    11,845
  Acquisition Costs
  Information about International Geographic Areas
  Note 3. Agreements and Transactions with Related Parties
  Transaction Fees
   CPA®:17  Global 3/31/2010 10-Q 9




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##### Table of Contents



Notes to Consolidated Financial Statements
   Asset Management Fee and Cash Distributions
   Organization and Offering Expenses
    CPA®:17  Global 3/31/2010 10-Q 10




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##### Table of Contents



Notes to Consolidated Financial Statements
 Other Expenses
   Joint Ventures and Other Transactions with Affiliates
   Note 4. Net Investments in Properties
 Net Investments in Properties
  March 31, 2010
    
    
    December 31, 2009Land
    
    $
    95,497
    
    
    $
    62,597Buildings
    
    
    315,761
    
    
    
    263,910Less: Accumulated depreciation
    
    
    (7,726
    )
    
    
    (5,957
    )$
    403,532
    
    
    $
    320,550
  Acquisitions of Real Estate
  Real Estate Under Construction
  Other
   CPA®:17  Global 3/31/2010 10-Q 11




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Notes to Consolidated Financial Statements
 Note 5. Net Investment in Direct Financing Leases
   ®
 Note 6. Equity Investments in Real Estate
   OwnershipInterest at
    
    
    Carrying Value atLessee
    
    March 31, 2010
    
    
    March 31, 2010
    
    
    December 31, 2009Berry Plastics (a)
    
    
    50
    %
    
    $
    21,149
    
    
    $
    21,414Tesco plc (b)
    
    
    49
    %
    
    
    20,890
    
    
    
    22,081$
    42,039
    
    
    $
    43,495
 
 (a)
    
    In February 2009, this venture repaid its $39.0 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. Our $3.2 million share of the gain was reduced by $2.9 million as a result of an
other-than-temporary impairment charge recognized to reduce the carrying value of our
investment to the estimated fair value of the ventures underlying properties (Note 8). In
connection with this transaction, the venture obtained non-recourse mortgage financing of
$29.0 million with a variable annual interest rate capped at 10% through the use of an
interest rate cap and a term of three years, with two one-year extensions.(b)
    
    Carrying value of investment is affected by the impact of fluctuations in the exchange rate
of the Euro. We acquired our interest in this investment in July 2009.  CPA®:17  Global 3/31/2010 10-Q 12




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##### Table of Contents



Notes to Consolidated Financial Statements
  March 31, 2010
    
    
    December 31, 2009Assets
    
    $
    175,597
    
    
    $
    181,600Liabilities
    
    
    (81,562
    )
    
    
    (84,522
    )Partners/members equity
    
    $
    94,035
    
    
    $
    97,078
 Three months ended March 31,2010
    
    
    2009Revenue
    
    $
    3,594
    
    
    $
    1,660Expenses
    
    
    (2,970
    )
    
    
    (1,614
    )Gain on extinguishment of debt
    
    
    
    
    
    
    6,512Net income
    
    $
    624
    
    
    $
    6,558
  Note 7. Securities Held to Maturity
    Description
    
    Face Value
    
    
    Amortized Cost
    
    
    Unrealized Gain
    
    
    Estimated Fair ValueCMBS
    
    $
    33,284
    
    
    $
    3,812
    
    
    $
    367
    
    
    $
    4,179
  Rating(a)
    
    Amortized CostB
    
    $
    1,749B+
    
    
    1,304BB-
    
    
    759$
    3,812
 (a)
    
    Ratings are those of Standard & Poors Ratings Services, a division of The McGraw-Hill Companies, Inc.  CPA®:17  Global 3/31/2010 10-Q 13




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##### Table of Contents



Notes to Consolidated Financial Statements
 Note 8. Fair Value Measurements
  Items Measured at Fair Value on a Recurring Basis
  Fair Value Measurements at Reporting Date Using:Quoted Prices inActive Markets for
    
    
    Significant Other
    
    
    UnobservableIdentical Assets
    
    
    Observable Inputs
    
    
    InputsDescription
    
    March 31, 2010
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Assets:Money market funds
    
    $
    312,870
    
    
    $
    312,870
    
    
    $
    
    
    
    $
    Derivative assets
    
    
    1,822
    
    
    
    
    
    
    
    1,822
    
    
    
    $
    314,692
    
    
    $
    312,870
    
    
    $
    1,822
    
    
    $
    Liabilities:Derivative liabilities
    
    $
    (328
    )
    
    $
    
    
    
    $
    (328
    )
    
    $
    
 Fair Value Measurements at Reporting Date Using:Quoted Prices inActive Markets for
    
    
    Significant Other
    
    
    UnobservableIdentical Assets
    
    
    Observable Inputs
    
    
    InputsDescription
    
    December 31, 2009
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Assets:Money market funds
    
    $
    278,566
    
    
    $
    278,566
    
    
    $
    
    
    
    $
    Derivative assets
    
    
    2,985
    
    
    
    
    
    
    
    2,985
    
    
    
    $
    281,551
    
    
    $
    278,566
    
    
    $
    2,985
    
    
    $
    Liabilities:Derivative liabilities
    
    $
    (20
    )
    
    $
    
    
    
    $
    (20
    )
    
    $
    
   March 31, 2010
    
    
    December 31, 2009Carrying Value
    
    
    Fair Value
    
    
    Carrying Value
    
    
    Fair ValueDebt
    
    $
    366,650
    
    
    $
    360,102
    
    
    $
    300,908
    
    
    $
    291,737CMBS (a)
    
    
    3,812
    
    
    
    4,179
    
    
    
    3,818
    
    
    
    3,818
 
 (a)
    
    Carrying value represents historical cost, inclusive of impairment charges
recognized during 2009 (Note 7).  CPA®:17  Global 3/31/2010 10-Q 14




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##### Table of Contents



Notes to Consolidated Financial Statements
  Items Measured at Fair Value on a Non-Recurring Basis
   Note 9. 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 3/31/2010 10-Q 15




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##### Table of Contents



Notes to Consolidated Financial Statements
   Asset Derivatives Fair Value atDerivatives Designated as Hedging Instruments
    
    Balance Sheet Location
    
    March 31, 2010
    
    
    December 31, 2009Interest rate cap
    
    Other assets
    
    $
    1,822
    
    
    $
    2,985Interest rate swap
    
    Other liabilities
    
    
    (328
    )
    
    
    (20
    )$
    1,494
    
    
    $
    2,965
   Amount ofLoss Recognizedin OCL on Derivatives(Effective Portion)Three monthsended March 31,Derivatives in Cash Flow Hedging Relationships
    
    2010Interest rate cap (a)
    
    $
    (1,163
    )Interest rate swap
    
    
    (308
    )Total
    
    $
    (1,471
    )
 
 (a)
    
    Includes loss of $0.5 million attributable to noncontrolling interests.   Interest Rate Swaps and Caps
   CPA®:17  Global 3/31/2010 10-Q 16




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##### Table of Contents



Notes to Consolidated Financial Statements
  Notional
    
    
    Effective
    
    
    Effective
    
    Expiration
    
    Fair Value atType
    
    Amount
    
    
    Interest Rate
    
    
    Date
    
    Date
    
    March 31, 20103-Month LIBOR
    
    Pay-fixed swap(a)
    
    $
    26,931
    
    
    
    3.7
    %
    
    1/2010
    
    12/2019
    
    $
    (328
    )3-Month LIBOR
    
    Interest rate cap (b)
    
    
    118,541
    
    
    
    8.8
    %
    
    8/2009
    
    8/2014
    
    
    1,822$
    1,494
 
 (a)
    
    We entered into this interest rate swap in December 2009.(b)
    
    The applicable interest rate of the related debt was 5.0%, which was below the effective
interest rate of the cap at March 31, 2010. Inclusive of noncontrolling interests in the
notional amount and fair value of the swap of $53.3 million and $0.8 million, respectively.  Embedded Credit Derivative
  Other
   Portfolio Concentration Risk
   CPA®:17  Global 3/31/2010 10-Q 17




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##### Table of Contents



Notes to Consolidated Financial Statements
  Note 10. Debt
  Note 11. Commitments and Contingencies
  Note 12. Income Taxes
    Note 13. Pro Forma Financial Information
   CPA®:17  Global 3/31/2010 10-Q 18




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##### Table of Contents



Notes to Consolidated Financial Statements
  Three months ended March 31,2010
    
    
    2009Pro forma total revenues
    
    $
    20,498
    
    
    $
    21,970Pro forma net income
    
    $
    10,700
    
    
    $
    9,180Less: Net income attributable to noncontrolling interests
    
    
    (3,283
    )
    
    
    (2,464
    )Pro forma net income attributable to CPA®:17 - Global shareholders
    
    $
    7,417
    
    
    $
    6,716Pro forma earnings per share:Net income attributable to CPA®:17 - Global shareholders
    
    $
    0.08
    
    
    $
    0.07
  Note 14. Subsequent Events
   CPA®:17  Global 3/31/2010 10-Q 19




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##### Table of Contents



Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations
  Business Overview
  Financial Highlights
  Three months ended March 31,2010
    
    
    2009Total revenues
    
    $
    18,296
    
    
    $
    8,709Net income attributable to CPA®:17  Global shareholders
    
    
    6,123
    
    
    
    298Cash flow provided by operating activities
    
    
    15,330
    
    
    
    3,475Supplemental performance measure:Adjusted cash flow from operating activities
    
    
    9,147
    
    
    
    2,513Distributions paid
    
    
    11,675
    
    
    
    4,507
 ®
    CPA®:17  Global 3/31/2010 10-Q 20




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##### Table of Contents



Current Trends
  Investment Opportunities
     Financing Conditions
   Tenant Defaults
    CPA®:17  Global 3/31/2010 10-Q 21




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##### Table of Contents



Fundraising
  Inflation and Foreign Exchange Rates
    Three months ended March 31,2010
    
    
    2009Average
conversion rate from Euro to U.S. dollar
    
    
    1.3856
    
    
    
    1.3083
  Results of Operations
     Three months ended March 31,2010
    
    
    2009Rental income
    
    $
    8,412
    
    
    $
    4,271Interest income from direct financing leases
    
    
    9,367
    
    
    
    3,765$
    17,779
    
    
    $
    8,036
  CPA®:17  Global 3/31/2010 10-Q 22




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##### Table of Contents



Three months ended March 31,Lessee (Date Acquired or Placed in Service)
    
    2010
    
    
    2009The New York Times Company (3/2009) (a)
    
    $
    6,659
    
    
    $
    1,850LifeTime Fitness, Inc. (9/2008)
    
    
    1,680
    
    
    
    1,680Eroski Sociedad Cooperativa (12/2009, 2/2010) (b)
    
    
    1,398
    
    
    
    Frontier Spinning Mills, Inc. (12/2008) (a)
    
    
    1,118
    
    
    
    1,109US Oncology, Inc. (12/2009)
    
    
    1,047
    
    
    
    Actebis Peacock GmbH (7/2008) (a) (b)
    
    
    1,008
    
    
    
    949Kronos Products, Inc. (3/2010)
    
    
    995
    
    
    
    Waldaschaff Automotive GmbH and Wagon Automotive Nagold GmbH (8/2008)
(a) (b) (c)
    
    
    729
    
    
    
    1,047Mori Seiki USA, Inc. (12/2009)
    
    
    703
    
    
    
    Laureate Education, Inc. (7/2008)
    
    
    709
    
    
    
    709Sabre Communications Corporation and Cellxion, LLC (8/2008)
    
    
    630
    
    
    
    632National Express Limited (12/2009) (b)
    
    
    485
    
    
    
    OBI Group Holding GmbH, OBI Holding GmbH and OBI AG (10/2009) (b)
    
    
    294
    
    
    
    Other
    
    
    324
    
    
    
    60$
    17,779
    
    
    $
    8,036
 (a)
    
    These revenues are generated in consolidated ventures with our affiliates and include lease
revenues applicable to noncontrolling interests totaling $4.0 million and $1.9 million for the
three months ended March 31, 2010 and 2009, respectively.(b)
    
    Amounts are subject to fluctuations in foreign currency exchange rates.(c)
    
    In connection with entering in Administration, Wagon Automotive GmbH terminated its lease
with us in May 2009 and a successor company, Waldaschaff Automotive GmbH, took over the
business and has been paying rent to us, albeit at a significantly reduced rate, while new
lease terms are being negotiated. In addition, in October 2009, we terminated the existing
lease with another tenant, Wagon Automotive Nagold GmbH, and signed a new lease with this
tenant on substantially the same terms.  Lease Revenues
   Depreciation and Amortization
   CPA®:17  Global 3/31/2010 10-Q 23




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##### Table of Contents



General and Administrative
  Property Expenses
  Income from Equity Investments in Real Estate
   Other Income and (Expenses)
   Interest Expense
  Benefit from (Provision for) Income Taxes
  Net Income Attributable to CPA ® :17  Global Shareholders
 ®
  CPA®:17  Global 3/31/2010 10-Q 24




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##### Table of Contents



Financial Condition
 Sources and Uses of Cash During the Period
  Operating Activities
  Investing Activities
  Financing Activities
     CPA®:17  Global 3/31/2010 10-Q 25




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##### Table of Contents



Summary of Financing
  March 31, 2010
    
    
    December 31, 2009BalanceFixed rate
    
    $
    221,177
    
    
    $
    154,754Variable rate (a)
    
    
    145,473
    
    
    
    146,154Total
    
    $
    366,650
    
    
    $
    300,908Percent of total debtFixed rate
    
    
    60
    %
    
    
    51
    %Variable rate (a)
    
    
    40
    %
    
    
    49
    %100
    %
    
    
    100
    %Weighted average interest rate at end of periodFixed rate
    
    
    6.8
    %
    
    
    7.1
    %Variable rate (a)
    
    
    5.3
    %
    
    
    5.3
    %
 
 (a)
    
    Variable rate debt at March 31, 2010 consisted of (i) $27.0 million that has been effectively
converted to fixed rate debt through interest rate swap derivative instruments and (ii)
$118.5 million that is subject to an interest rate cap, but for which the applicable interest
rate was below the effective interest rate of the cap at March 31, 2010. Cash Resources
   Cash Requirements
   CPA®:17  Global 3/31/2010 10-Q 26




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##### Table of Contents



Off-Balance Sheet Arrangements and Contractual Obligations
  Less than
    
    
    
    
    
    
    
    
    
    
    More thanTotal
    
    
    1 Year
    
    
    1-3 Years
    
    
    3-5 Years
    
    
    5 yearsNon-recourse and limited-recourse debt  principal
    
    $
    366,650
    
    
    $
    6,056
    
    
    $
    15,419
    
    
    $
    122,253
    
    
    $
    222,922Deferred acquisition fees
    
    
    9,791
    
    
    
    5,243
    
    
    
    4,548
    
    
    
    
    
    
    
    Interest on borrowings and deferred acquisition fees
    
    
    157,511
    
    
    
    23,289
    
    
    
    43,951
    
    
    
    39,212
    
    
    
    51,059Operating and other lease commitments (a)
    
    
    954
    
    
    
    142
    
    
    
    291
    
    
    
    290
    
    
    
    231$
    534,906
    
    
    $
    34,730
    
    
    $
    64,209
    
    
    $
    161,755
    
    
    $
    274,212
 
 (a)
    
    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
    
    March 31, 2010
    
    
    Total Assets
    
    
    Party Debt
    
    
    Maturity DateBerry Plastics
    
    
    50
    %
    
    $
    80,821
    
    
    $
    29,000
    
    
    
    3/2012Tesco plc (a)
    
    
    49
    %
    
    
    94,776
    
    
    
    46,837
    
    
    
    6/2016$
    175,597
    
    
    $
    75,837
 
 (a)
    
    Dollar amounts shown are based on the exchange rate of the Euro at March 31, 2010. Subsequent Events
  Adjusted Cash Flow from Operating Activities
   CPA®:17  Global 3/31/2010 10-Q 27




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##### Table of Contents



Three months ended March 31,2010
    
    
    2009Cash flow provided by operating activities  as reported
    
    $
    15,330
    
    
    $
    3,475Adjustments:Distributions received from equity investments in real estate in excess of
equity income, net(a)
    
    
    332
    
    
    
    Distributions paid to noncontrolling interests, net (b)
    
    
    (2,394
    )
    
    
    (873
    )Changes in working capital (c)
    
    
    (4,121
    )
    
    
    (89
    )Adjusted cash from operating activities
    
    $
    9,147
    
    
    $
    2,513Distributions paid
    
    $
    11,675
    
    
    $
    4,507Weighted average shares outstanding
    
    
    87,261,461
    
    
    
    38,152,272
 
 (a)
    
    To the extent we receive distributions in excess of equity income that we recognize, we
include such amounts in our evaluation of cash flow from core operations.(b)
    
    Represents noncontrolling interests share of distributions made by ventures that we
consolidate in our financial statements.(c)
    
    Timing differences arising from the payment of certain liabilities and the receipt of certain
receivables in a period other than that in which the item is recognized in determining net
income may distort the actual cash flow that our core operations generate. We adjust our GAAP
cash flow provided by operating activities to record such amounts in the period in which the
item was actually recognized.  CPA®:17  Global 3/31/2010 10-Q 28




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##### Table of Contents



Item 3.
    
    Quantitative and Qualitative Disclosures About Market Risk
 Market Risk
   Interest Rate Risk
       CPA®:17  Global 3/31/2010 10-Q 29




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##### Table of Contents



2010
    
    
    2011
    
    
    2012
    
    
    2013
    
    
    2014
    
    
    Thereafter
    
    
    Total
    
    
    Fair valueFixed rate debt
    
    $
    2,339
    
    
    $
    4,332
    
    
    $
    4,687
    
    
    $
    5,053
    
    
    $
    5,612
    
    
    $
    199,154
    
    
    $
    221,177
    
    
    $
    214,630Variable rate debt
    
    $
    2,162
    
    
    $
    3,042
    
    
    $
    3,176
    
    
    $
    3,317
    
    
    $
    108,776
    
    
    $
    25,000
    
    
    $
    145,473
    
    
    $
    145,472
  Foreign Currency Exchange Rate Risk
   
 Item 4.
    
    Controls and Procedures
 Disclosure Controls and Procedures
   Changes in Internal Control over Financial Reporting
   CPA®:17  Global 3/31/2010 10-Q 30




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##### 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)
    
    
    92,107,016Aggregated offering price of amount sold
    
    $
    920,310Direct 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
    
    
    (91,969
    )Direct or indirect payments to others
    
    
    (8,044
    )Net offering proceeds to the issuer after deducting expenses
    
    
    820,297Purchases of real estate related assets
    
    
    (416,120
    )Temporary investments in cash and cash equivalents
    
    $
    404,177
 
 (a)
    
    Excludes shares issued to affiliates, including our advisor, and 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 the2010 Period
    
    shares purchased(a)
    
    
    paid per share
    
    
    plans or programs(a)
    
    
    plans or programs(a)January
    
    
    
    
    
    
    
    
    
    
    N/A
    
    
    
    N/AFebruary
    
    
    
    
    
    
    
    
    
    
    N/A
    
    
    
    N/AMarch
    
    
    105,869
    
    
    $
    9.30
    
    
    
    N/A
    
    
    
    N/ATotal
    
    
    105,869
 
 (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 3/31/2010 10-Q 31




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##### Table of Contents



Item 6.
    
    Exhibits
 Exhibit No.
    
    Description
    
    Method of Filing31.1
    
    
    Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
    
    Filed herewith31.2
    
    
    Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
    
    Filed herewith32
    
    
    Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
    
    Filed herewith
  CPA®:17  Global 3/31/2010 10-Q 32




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##### Table of Contents



SIGNATURES
  Corporate Property Associates
17  Global IncorporatedDate 5/14/2010
    By:
    /s/ Mark J. DeCesarisMark J. DeCesarisManaging Director and Acting Chief Financial Officer
(Principal Financial Officer)Date 5/14/2010
    By:
    /s/ Thomas J. Ridings, Jr.Thomas J. Ridings, Jr.Executive Director and Chief Accounting Officer
(Principal Accounting Officer)  CPA®:17  Global 3/31/2010 10-Q 33




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##### Table of Contents



EXHIBIT INDEX
 Exhibit No.
    
    Description
    
    Method of Filing31.1
    
    
    Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
    
    Filed herewith31.2
    
    
    Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
    
    Filed herewith32
    
    
    Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
    
    Filed herewith
  CPA®:17  Global 3/31/2010 10-Q 34