##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D. C. 20549
 FORM 10-K
 þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the fiscal year ended December 31, 2009
 or
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to .
 Commission file number: 000-52891
 (CPA LOGO)
 CORPORATE PROPERTY ASSOCIATES 17  GLOBAL INCORPORATED
  Maryland
    
    20-8429087(State or other jurisdiction of incorporation or organization)
    
    (I.R.S. Employer Identification No.)50 Rockefeller PlazaNew York, New York
    
    10020(Address of principal executive offices)
    
    (Zip code)
 Investor Relations (212) 492-8920
 (212) 492-1100
 None
 Common Stock, Par Value $0.001 Per Share
 o þ
 o þ
 þ o
 o o
 þ
  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
   DOCUMENTS INCORPORATED BY REFERENCE




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TABLE OF CONTENTS
 Page No.PART IItem 1. Business
    
    
    2Item 1A. Risk Factors
    
    
    11Item 1B. Unresolved Staff Comments
    
    
    26Item 2. Properties
    
    
    26Item 3. Legal Proceedings
    
    
    27Item 4. Removed and Reserved
    
    
    27PART IIItem 5. Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity
Securities
    
    
    27Item 6. Selected Financial Data
    
    
    28Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    29Item 7A. Quantitative and Qualitative Disclosures About Market Risk
    
    
    43Item 8. Financial Statements and Supplementary Data
    
    
    45Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
    
    
    89Item 9A(T). Controls and Procedures
    
    
    89Item 9B. Other Information
    
    
    89PART IIIItem 10. Directors, Executive Officers and Corporate Governance
    
    
    90Item 11. Executive Compensation
    
    
    90Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholders Matters
    
    
    90Item 13. Certain Relationships and Related Transactions, and Director Independence
    
    
    90Item 14. Principal Accounting Fees and Services
    
    
    90PART IVItem 15. Exhibits, Financial Statement Schedules
    
    
    91SIGNATURES
    
    
    93Exhibit 21.1Exhibit 31.1Exhibit 31.2Exhibit 32
  Forward-Looking Statements
  CPA®:17 2009 10-K 1




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Item 1.
    
    Business.
 (a) General Development of Business
 Overview:
   ® ® ® ®
      Public Offering
 CPA®:17
2009 10-K 2




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##### Table of Contents



Acquisition Activity ®
 Financing Activity 
 Impairment Charges
 (b) Financial Information About Segments
  (c) Narrative Description of Business
 Business Objectives and Strategy
  
    
    provide attractive risk-adjusted returns for our shareholders;
    
    generate sufficient cash flow over time to provide investors with increasing distributions;
    
    seek investments with potential for capital appreciation; and
    
    use leverage to enhance the returns on our investments.
   
    
    equity investments in real properties that are not net leased to a single tenant under
long-term leases and may include partially leased properties, multi-tenanted properties,
vacant or undeveloped properties and properties subject to short-term net leases, among
others:
    
    mortgage loans secured by commercial real properties;
    
    subordinated interests in first mortgage real estate loans, or B Notes;
    
    mezzanine loans related to commercial real estate that are senior to the borrowers
equity position but subordinated to other third-party financing;
    
    CMBS;
    
    equity and debt securities (including preferred equity and other higher-yielding
structured debt and equity investments) and other interests issued by entities that are
engaged in real-estate related businesses, including real estate funds and other REITs; and
    
    credit-based investments.
  CPA®:17
2009 10-K 3




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Our Portfolio
  Geographic Diversification
  Consolidated Investments
    
    
    Equity Investments in Real Estate(b)Annualized
    
    
    % of Annualized
    
    
    Annualized
    
    
    % of AnnualizedContractual Lease
    
    
    Contractual
    
    
    Contractual Lease
    
    
    ContractualRegion
    
    Revenue(a)
    
    
    Lease Revenue
    
    
    Revenue(a)
    
    
    Lease RevenueUnited StatesEast
    
    $
    31,475
    
    
    
    53
    %
    
    $
    697
    
    
    
    10
    %South
    
    
    6,187
    
    
    
    10
    
    
    
    
    
    
    
    Midwest
    
    
    5,380
    
    
    
    9
    
    
    
    2,623
    
    
    
    38West
    
    
    3,073
    
    
    
    5
    
    
    
    
    
    
    
    Total U.S.
    
    
    46,115
    
    
    
    77
    
    
    
    3,320
    
    
    
    48InternationalEurope (c)
    
    
    13,812
    
    
    
    23
    
    
    
    3,540
    
    
    
    52Total
    
    $
    59,927
    
    
    
    100
    %
    
    $
    6,860
    
    
    
    100
    %
 
 (a)
    
    Reflects annualized contractual minimum base rent for the fourth quarter of 2009.(b)
    
    Reflects our pro rata share of annualized contractual minimum base rent for the fourth
quarter of 2009 from equity investments in real estate.(c)
    
    Reflects investments in Germany, Hungary, Poland, Spain and the United Kingdom. Property Diversification
  Consolidated Investments
    
    
    Equity Investments in Real Estate(b)Annualized
    
    
    % of Annualized
    
    
    Annualized
    
    
    % of AnnualizedContractual Lease
    
    
    Contractual
    
    
    Contractual Lease
    
    
    ContractualProperty Type
    
    Revenue(a)
    
    
    Lease Revenue
    
    
    Revenue(a)
    
    
    Lease RevenueOffice
    
    $
    32,923
    
    
    
    55
    %
    
    $
    
    
    
    
    
    %Retail
    
    
    11,219
    
    
    
    19
    
    
    
    
    
    
    
    Industrial
    
    
    9,157
    
    
    
    15
    
    
    
    3,320
    
    
    
    48Education
    
    
    2,442
    
    
    
    4
    
    
    
    
    
    
    
    Warehouse/Distribution
    
    
    1,996
    
    
    
    3
    
    
    
    3,540
    
    
    
    52Other Properties
    
    
    2,190
    
    
    
    4
    
    
    
    
    
    
    
    Total
    
    $
    59,927
    
    
    
    100
    %
    
    $
    6,860
    
    
    
    100
    %
 
 (a)
    
    Reflects annualized contractual minimum base rent for the fourth quarter of 2009.(b)
    
    Reflects our pro rata share of annualized contractual minimum base rent for the fourth
quarter of 2009 from equity investments in real estate.(c)
    
    Other properties include a transportation facility. CPA®:17
2009 10-K 4




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Tenant Diversification
  Consolidated Investments
    
    
    Equity Investments in Real Estate(c)Annualized
    
    
    % of Annualized
    
    
    Annualized
    
    
    % of AnnualizedContractual Lease
    
    
    Contractual
    
    
    Contractual Lease
    
    
    ContractualTenant Industry (a)
    
    Revenue(b)
    
    
    Lease Revenue
    
    
    Revenue(b)
    
    
    Lease RevenueMedia: Printing and Publishing
    
    $
    24,188
    
    
    
    40
    %
    
    $
    
    
    
    
    
    %Electronics
    
    
    6,874
    
    
    
    11
    
    
    
    
    
    
    
    Healthcare, Education and Childcare
    
    
    6,065
    
    
    
    10
    
    
    
    
    
    
    
    Leisure, Amusement, Entertainment
    
    
    5,771
    
    
    
    10
    
    
    
    
    
    
    
    Retail Stores
    
    
    5,448
    
    
    
    9
    
    
    
    3,540
    
    
    
    52Textiles, Leather and Apparel
    
    
    4,590
    
    
    
    8
    
    
    
    
    
    
    
    Machine (Manufacturing)
    
    
    2,703
    
    
    
    5
    
    
    
    
    
    
    
    Transportation  Personal
    
    
    2,167
    
    
    
    4
    
    
    
    
    
    
    
    Automobile
    
    
    1,886
    
    
    
    3
    
    
    
    
    
    
    
    Mining, Metals, and Primary Metal Industries
    
    
    235
    
    
    
    
    
    
    
    
    
    
    
    Chemicals, Plastics, Rubber, and Glass
    
    
    
    
    
    
    
    
    
    
    3,320
    
    
    
    48Total
    
    $
    59,927
    
    
    
    100
    %
    
    $
    6,860
    
    
    
    100
    %
 
 (a)
    
    Based on the Moodys Investors Service (Moodys) classification system and information
provided by the tenant.(b)
    
    Reflects annualized contractual minimum base rent for the fourth quarter of 2009.(c)
    
    Reflects our pro rata share of annualized contractual minimum base rent for the fourth
quarter of 2009 from equity investments in real estate. Lease Expirations
  Consolidated Investments
    
    
    Equity Investments in Real Estate(b)Annualized
    
    
    % of Annualized
    
    
    Annualized
    
    
    % of AnnualizedContractual Lease
    
    
    Contractual
    
    
    Contractual Lease
    
    
    ContractualYear of Lease Expiration
    
    Revenue(a)
    
    
    Lease Revenue
    
    
    Revenue(a)
    
    
    Lease Revenue2010 - 2022
    
    $
    
    
    
    
    
    %
    
    $
    
    
    
    
    
    %2023
    
    
    1,886
    
    
    
    3
    
    
    
    
    
    
    
    2024
    
    
    32,122
    
    
    
    53
    
    
    
    3,540
    
    
    
    522025 - 2026
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2027
    
    
    1,197
    
    
    
    2
    
    
    
    
    
    
    
    2028
    
    
    15,601
    
    
    
    26
    
    
    
    3,320
    
    
    
    482029
    
    
    6,954
    
    
    
    12
    
    
    
    
    
    
    
    2030 - 2034
    
    
    2,167
    
    
    
    4
    
    
    
    
    
    
    
    Total
    
    $
    59,927
    
    
    
    100
    %
    
    $
    6,860
    
    
    
    100
    %
 
 (a)
    
    Reflects annualized contractual minimum base rent for the fourth quarter of 2009.(b)
    
    Reflects our pro rata share of annualized contractual minimum base rent for the fourth
quarter of 2009 from equity investments in real estate. CPA®:17
2009 10-K 5




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Asset Management
   Holding Period
  ® ® ®
 Financing Strategies
   CPA®:17
2009 10-K 6




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Target Investments
  Real
Estate Properties
 Long-Term Net Leased Assets
     Tenant/Borrower Evaluation
 Properties Important to Tenant/Borrower Operations
 Diversification
 Lease Terms
 CPA®:17
2009 10-K 7




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Collateral Evaluation
 Transaction Provisions to Enhance and Protect Value
 Other Equity Enhancements
 Real
Estate Related Assets
 Opportunistic Investments
  Mortgage Loans Secured by Commercial Real Properties
  B Notes
   CPA®:17
2009 10-K 8




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Mezzanine Loans
  Commercial Mortgage-Backed Securities
  Equity and Debt Securities of Companies Engaged in Real Estate Activities, including other REITs
  Investment Decisions
 ® ® ® ® ® ®
  
    
    Nathaniel S. Coolidge, Chairman  Former senior vice president and head of the bond and
corporate finance department of John Hancock Mutual Life Insurance (currently known as John
Hancock Life Insurance Company). Mr. Coolidges responsibilities included overseeing its
entire portfolio of fixed income investments.
 
    
    Trevor P. Bond Co-founder of Credit Suisses real estate equity group. Currently
managing member of private investment vehicle, Maidstone Investment Co., LLC.
 
    
    Axel K. A. Hansing Currently serving as a senior partner at Coller Capital, Ltd., a
global leader in the private equity secondary market, and is responsible for investment
activity in parts of Europe, Turkey and South Africa.
 
    
    Frank J. Hoenemeyer Former vice chairman and chief investment officer of the
Prudential Insurance Company of America. As chief investment officer, he was responsible
for all of Prudential Insurance Company of Americas investments including stocks, bonds
and real estate.
 CPA®:17
2009 10-K 9




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
    
    Dr. Lawrence R. Klein Currently serving as professor emeritus of economics and finance
at the University of Pennsylvania and its Wharton School. Recipient of the 1980 Nobel Prize
in economic sciences and former consultant to both the Federal Reserve Board and the
Presidents Council of Economic Advisors.
 
    
    Nick J. M. van Ommen Former chief executive officer of the European Public Real Estate
Association promoting, developing and representing the European public real estate sector.
 
    
    Dr. Karsten von Köller Currently chairman of Lone Star Germany GmbH, deputy chairman
of the Supervisory Board of Corealcredit Bank AG, deputy chairman of the Supervisory Board
of MHB Bank AG, and vice chairman of the Supervisory Board of IKB Deutsche Industriebank
AG. Former chief executive officer of Eurohypo AG.
  Segments
  Competition
   Environmental Matters
  Transactions with Affiliates
 ® ®
 CPA®:17
2009 10-K 10




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(d) Financial Information About Geographic Areas
  (e) Available Information
   
 Item 1A.
    
    Risk Factors.
  The current financial and economic crisis has adversely affected, and may continue to adversely
affect, our business.
  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.
   CPA®:17
2009 10-K 11




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Our distributions paid to date have exceeded, and future distributions may exceed, our adjusted
cash flow from operating activities and our earnings in accordance with accounting principles
generally accepted in the U.S. (GAAP).
   We were incorporated in February 2007 and have a very limited operating history; therefore, there
is no assurance that we will be able to achieve our investment objectives.
  The offering price for shares being offered in our ongoing public offering and through our
distribution reinvestment plan was determined by our board of directors and may not be indicative
of the price at which the shares would trade if they were listed on an exchange or were actively
traded by brokers.
  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.
 ®
 We have recognized, and may in the future recognize, substantial impairment charges on our
properties.
  CPA®:17
2009 10-K 12




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Our board of directors may change our investment policies without shareholder approval, which could
alter the nature of your investment.
  We are not required to meet any diversification standards; therefore, our investments may become
subject to concentration of risk.
  Our success will be dependent on the performance of our advisor.
 ®
 We may invest in assets outside our advisors core expertise and incur losses as a result.
  Our advisor has limited experience managing a REIT that has a broad investment strategy such as
ours.
 ®
 Exercising our right to repurchase all or a portion of Carey Holdings interests in our operating
partnership upon certain termination events could be prohibitively expensive and could deter us
from terminating the advisory agreement.
  CPA®:17
2009 10-K 13




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The repurchase of Carey Holdings special general partner interest in our operating partnership
upon the termination of Carey Asset Management as our advisor may discourage a takeover attempt if
our advisory agreement would be terminated and Carey Asset Management not replaced by an affiliate
of Carey Asset Management as our advisor in connection therewith.
  The termination or replacement of our advisor could trigger a default or repayment event under our
financing arrangements for some of our assets.
  Payment of fees to our advisor, and distributions to our special general partner, will reduce cash
available for investment and distribution.
  Our advisor may be subject to conflicts of interest.
  
    
    the receipt of compensation by our advisor for acquisitions of investments, leases,
sales and financing for us, which may cause our advisor to engage in transactions that
generate higher fees, rather than transactions that are more appropriate or beneficial for
our business;
 
    
    agreements between us and our advisor, including agreements regarding compensation, will
not be negotiated on an arms-length basis as would occur if the agreements were with
unaffiliated third parties;
 
    
    acquisitions of single assets or portfolios of assets from affiliates, including the
other operating CPA® REITs, subject to our investment policies and
procedures, which may take the form of a direct purchase of assets, a merger or another
type of transaction;
 
    
    competition with certain affiliates for investment acquisitions, which may cause our
advisor and its affiliates to direct investments suitable for us to other related entities;
 
    
    a decision by our advisor (on our behalf) of whether to hold or sell an asset. This
decision could impact the timing and amount of fees payable to our advisor as well as
allocations and distributions payable to Carey Holdings pursuant to its special general
partner interests. On the one hand, our advisor receives asset management fees and may
decide not to sell an asset. On the other hand, Carey Holdings will be entitled to certain
profit allocations and cash distributions based upon sales of assets as a result of its
operating partnership profits interest;
    
    a recommendation by our advisor that we declare distributions at a particular rate
because our advisor and Carey Holdings may begin collecting subordinated fees and
subordinated distributions once the applicable preferred return rate has been met; and
 
    
    disposition fees based on the sale price of assets and interests in disposition proceeds
based on net cash proceeds from sale, exchange or other disposition of assets may cause a
conflict between the advisors desire to sell an asset and our plans to hold or sell the
asset.
 We delegate our management functions to the advisor.
  CPA®:17
2009 10-K 14




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We face competition from affiliates of our advisor in the purchase, sale, lease and operation of
properties.
 ® ® ® ® ®
 Our advisor may hire subadvisors in areas where our advisor is seeking additional expertise.
Shareholders will not be able to review these subadvisors, and our advisor may not have sufficient
expertise to monitor the subadvisors.
  We do not fully control the management of our properties.
  We may incur material losses on some of our investments.
  A potential change in U.S. accounting standards regarding operating leases may make the leasing of
facilities less attractive to our potential domestic tenants, which could reduce overall demand for
our leasing services.
  CPA®:17
2009 10-K 15




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Our net tangible book value may be adversely affected if we are required to adopt certain fair
value accounting provisions.
   Our participation in joint ventures creates additional risk.
 ®
 Your investment return may be reduced if we are required to register as an investment company under
the Investment Company Act.
  
    
    limitations on capital structure;
    
    restrictions on specified investments;
    
    prohibitions on transactions with affiliates; and
 
    
    compliance with reporting, record keeping, voting, proxy disclosure and other rules and
regulations that would significantly increase our operating expenses.
   CPA®:17
2009 10-K 16




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Compliance with the Americans with Disabilities Act may require us to spend substantial amounts of
money, which could adversely affect our operating results.
  We may use derivative financial instruments to hedge against interest rate and currency
fluctuations, which could reduce the overall returns on your investment.
  International investment risks may adversely affect our operations and our ability to make
distributions.
  We may invest in new geographic areas that have risks that are greater or less well known to us,
and we may incur losses as a result.
  We will incur debt to finance our operations, which may subject us to an increased risk of loss.
   CPA®:17
2009 10-K 17




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The inability of a tenant in a single tenant property to pay rent will reduce our revenues.
  The bankruptcy or insolvency of tenants or borrowers may cause a reduction in revenue.
  
    
    the loss of lease or interest payments;
    
    an increase in the costs incurred to carry the asset;
    
    litigation;
    
    a reduction in the value of our shares; and
    
    a decrease in distributions to our shareholders.
    ® ®
   CPA®:17
2009 10-K 18




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Our leases may permit tenants to purchase a property at a predetermined price, which could limit
our realization of any appreciation.
  Highly leveraged tenants may have a higher possibility of filing for bankruptcy or insolvency.
  The credit profiles of our tenants may create a higher risk of lease defaults and therefore lower
revenues.
  We may incur costs to finish build-to-suit properties.
  We are subject, in part, to the risks of real estate ownership, which could reduce the value of our
properties.
  
    
    changes in the general economic climate;
    
    changes in local conditions such as an oversupply of space or reduction in demand for real estate;
    
    changes in interest rates and the availability of financing; and
    
    changes in laws and governmental regulations, including those governing real estate usage, zoning and taxes.
 We may have difficulty selling or re-leasing our properties.
  CPA®:17
2009 10-K 19




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##### Table of Contents



Potential liability for environmental matters could adversely affect our financial condition.
  
    
    Responsibility and liability for the cost of investigation, removal or remediation of
hazardous or toxic substances released on or from our property, generally without regard to
our knowledge of, or responsibility for, the presence of these contaminants.
 
    
    Liability for claims by third parties based on damages to natural resources or property,
personal injuries, or costs of removal or remediation of hazardous or toxic substances in,
on, or migrating from our property.
 
    
    Responsibility for managing asbestos-containing building materials, and third-party
claims for exposure to those materials.
  We face competition for the investments we make.
  Non-net lease investments may involve higher risks and less current income, which could adversely
affect distributions.
  Appraisals that we obtain may include leases in place on the property being appraised, and if the
leases terminate, the value of the property may become significantly lower.
  CPA®:17
2009 10-K 20




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The mortgage loans in which we may invest and the mortgage loans underlying the commercial
mortgage-backed securities in which we may invest will be subject to delinquency, foreclosure and
loss, which could result in losses to us.
  
    
    tenant mix;
    
    success of tenant businesses;
    
    property management decisions;
    
    property location and condition;
    
    competition from comparable types of properties;
    
    changes in specific industry segments;
    
    declines in regional or local real estate values, or rental or occupancy rates; and
    
    increases in interest rates, real estate tax rates and other operating expenses.
  The B notes, subordinate mortgage notes, mezzanine loans and participation interests in mortgage
and mezzanine loans in which we may invest may be subject to risks relating to the structure and
terms of the transactions, as well as subordination in bankruptcy, and there may not be sufficient
funds or assets remaining to satisfy the subordinate notes in which we may have invested, which may
result in losses to us.
  Interest rate fluctuations and changes in prepayment rates could reduce our ability to generate
income on our investments in commercial mortgage loans.
  CPA®:17
2009 10-K 21




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An increase in prepayment rates of the mortgage loans underlying our CMBS investments may adversely
affect the profitability of our investment in these securities.
   We may invest in subordinate commercial mortgage-backed securities, which are subject to a greater
risk of loss than more senior securities.
    The B Notes in which we invest may be subject to additional risks relating to the privately
negotiated structure and terms of the transaction, which may result in losses to us.
  Investment in non-conforming and non-investment grade loans may involve increased risk of loss.
  CPA®:17
2009 10-K 22




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Investments in mezzanine loans involve greater risks of loss than senior loans secured by income
producing properties.
  Our investments in debt securities are subject to specific risks relating to the particular issuer
of securities and to the general risks of investing in subordinated real estate securities.
  
    
    risks of delinquency and foreclosure, and risks of loss in the event thereof;
    
    the dependence upon the successful operation of and net income from real property;
    
    risks generally incident to interests in real property; and
    
    risk that may be presented by the type and use of a particular commercial property.
  
    
    limited liquidity in the secondary trading market;
    
    substantial market price volatility resulting from changes in prevailing interest rates;
    
    subordination to the prior claims of banks and other senior lenders to the issuer;
 
    
    the operation of mandatory sinking fund or call/redemption provisions during periods of
declining interest rates that could cause the issuer to reinvest premature redemption
proceeds in lower yielding assets;
 
    
    the possibility that earnings of the debt security issuer may be insufficient to meet
its debt service; and
 
    
    the declining creditworthiness and potential for insolvency of the issuer of such debt
securities during periods of rising interest rates and economic downturn.
  Investments in securities of REITs, real estate operating companies and companies with significant
real estate assets will expose us to many of the same general risks associated with direct real
property ownership.
  The value of the equity securities of companies engaged in real estate activities that we may
invest in may be volatile and may decline.
   CPA®:17
2009 10-K 23




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We may invest in the equity securities of CDOs and such investments involve various significant
risks, including that CDO equity receives distributions from the CDO only if the CDO generates
enough income to first pay the holders of its debt securities and its expenses.
  Equity investments involve a greater risk of loss than traditional debt financing.
  The lack of an active public trading market for our shares combined with the limit on the number of
our shares a person may own may discourage a takeover and make it difficult for shareholders to
sell shares quickly.
  Failing to continue to qualify as a REIT would adversely affect our operations and ability to make
distributions.
  CPA®:17
2009 10-K 24




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If our distributions exceed our adjusted cash flow from operating activities, we will fund
distributions from other sources, which could reduce the funds we have available for investments
and your overall return.
  The IRS may treat sale-leaseback transactions as loans, which could jeopardize our REIT
qualification.
  Dividends payable by REITs generally do not qualify for reduced U.S. federal income tax rates
because qualifying REITs do not pay U.S. federal income tax on their net income.
  Our board of directors may revoke our REIT election without shareholder approval, which may cause
adverse consequences to our shareholders.
  Conflicts of interest may arise between holders of our common shares and holders of partnership
interests in our operating partnership.
   CPA®:17 2009 10-K 25




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##### Table of Contents



Maryland law could restrict change in control, which could have the effect of inhibiting a change
in control even if a change in control were in our shareholders interest.
  
    
    any person who beneficially owns 10% or more of the voting power of our outstanding
voting shares, referred to as an interested shareholder;
    
    an affiliate who, at any time within the two-year period prior to the date in question,
was the beneficial owner of 10% or more of the voting power of our outstanding shares, also
referred to as an interested shareholder; or
    
    an affiliate of an interested shareholder.
  Our charter permits our board of directors to issue stock with terms that may subordinate the
rights of the holders of our current common stock or discourage a third party from acquiring us.
  
 Item 1B.
    
    Unresolved Staff Comments.
  
 Item 2.
    
    Properties.
   CPA®:17 2009 10-K 26




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##### Table of Contents



Item 3.
    
    Legal Proceedings.
  
 Item 4.
    
    Removed and Reserved.
 
  
 Item 5.
    
    Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
  Distributions
  2009
    
    
    2008First quarter
    
    $
    0.1562
    
    
    $
    0.1375Second quarter
    
    
    0.1575
    
    
    
    0.1375Third quarter
    
    
    0.1587
    
    
    
    0.1390Fourth quarter
    
    
    0.1600
    
    
    
    0.1438$
    0.6324
    
    
    $
    0.5578
  (a)
    
    For the three months ended December 31, 2009, we issued 74,648 restricted shares of our
common stock to the advisor as consideration for asset management fees. These shares were
issued at $10.00 per share, which represents our initial offering price. Since none of these
transactions were considered to have involved a public offering within the meaning of
Section 4(2) of the Securities Act, the shares issued were deemed to be exempt from
registration. In acquiring our shares, the advisor represented that such interests were being
acquired by it for the purposes of investment and not with a view to the distribution thereof.(b)
    
    We intend to use the net proceeds of our offering to invest in a diversified portfolio of
income-producing commercial properties and other real estate related assets. The use of
proceeds from our offering of common stock, which commenced in December 2007 pursuant to a
registration statement (No. 333-140842) that was declared effective in November 2007, is as
follows at December 31, 2009 (in thousands except share amounts):
 Shares registered
    
    
    200,000,000Aggregate price of offering amount registered
    
    $
    2,000,000Shares sold (a)
    
    
    78,095,365Aggregated offering price of amount sold
    
    $
    780,313Direct 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
    
    
    (77,957
    )Direct or indirect payments to others
    
    
    (7,955
    )Net offering proceeds to the issuer after deducting expenses
    
    
    694,401Purchases of real estate, equity investments in real estate and real estate related assets,
net of mortgage financing
    
    
    (337,433
    )Temporary investments in cash and cash equivalents
    
    $
    356,968
 (a)
    
    Excludes shares issued to affiliates, including our advisor, and shares issued pursuant
to our distribution reinvestment and stock purchase plan. CPA®:17 2009 10-K 27




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##### Table of Contents



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)October
    
    
    
    
    
    
    
    
    
    
    N/A
    
    
    
    N/ANovember
    
    
    
    
    
    
    
    
    
    
    N/A
    
    
    
    N/ADecember
    
    
    104,763
    
    
    $
    9.30
    
    
    
    N/A
    
    
    
    N/ATotal
    
    
    104,763
 
 (a)
    
    Represents shares of our common stock purchased under our redemption plan, pursuant to which
we may elect to redeem shares at the request of our shareholders who have held their shares
for at least one year from the date of their issuance, subject to certain conditions and
limitations. The maximum amount of shares purchasable by us in any period depends on a number
of factors and is at the discretion of our board of directors. The redemption plan will
terminate if and when our shares are listed on a national securities market. 
 Item 6.
    
    Selected Financial Data.
   Years ended December 31,
    
    
    Period ended2009
    
    
    2008
    
    
    12/31/2007 (a)Operating Data(b)Total revenues
    
    $
    50,193
    
    
    $
    9,680
    
    
    $
    Net income (loss) (c)
    
    
    2,180
    
    
    
    (1,650
    )
    
    
    (106
    )(Less) Add: Net (income) loss attributable to noncontrolling interests
    
    
    (9,881
    )
    
    
    403
    
    
    
    Net loss attributable to CPA®17  Global shareholders
    
    
    (7,701
    )
    
    
    (1,247
    )
    
    
    (106
    )Loss per share:Net loss attributable to CPA®:17  Global shareholders
    
    
    (0.14
    )
    
    
    (0.07
    )
    
    
    (4.76
    )Cash distributions declared per share
    
    
    0.6324
    
    
    
    0.5578
    
    
    
    0.0792Balance Sheet DataTotal assets
    
    $
    1,067,872
    
    
    $
    479,072
    
    
    $
    2,944Net investments in real estate(d)
    
    
    698,332
    
    
    
    273,314
    
    
    
    8Long-term obligations (e)
    
    
    308,830
    
    
    
    137,181
    
    
    
    Other InformationCash provided by (used in) operating activities
    
    $
    32,240
    
    
    $
    4,443
    
    
    $
    (17
    )Cash distributions paid
    
    
    27,193
    
    
    
    5,196
    
    
    
    Payment of mortgage principal (f)
    
    
    4,494
    
    
    
    540
    
    
    
    
 
 (a)
    
    For the period from inception (February 20, 2007) to December 31, 2007.(b)
    
    Certain prior year balances have been retrospectively adjusted for the adoption of recent
accounting guidance for noncontrolling interests.(c)
    
    Net income in 2009 reflects impairment charges totaling $26.8 million, inclusive of amounts
attributable to noncontrolling interests totaling $2.8 million.(d)
    
    Net investments in real estate consists of net investments in properties, net investment in
direct financing leases, equity investments in real estate and real estate under construction,
as applicable.(e)
    
    Represents mortgage obligations and deferred acquisition fee installments.(f)
    
    Represents scheduled mortgage principal payments. CPA®:17 2009 10-K 28




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##### Table of Contents



Item 7.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations.
  Business Overview
  Financial Highlights
 Period from inception(February 20, 2007)Years ended December 31,
    
    
    through2009
    
    
    2008
    
    
    December 31, 2007Total revenues
    
    $
    50,193
    
    
    $
    9,680
    
    
    $
    Net loss attributable to CPA®:17  Global shareholders
    
    
    (7,701
    )
    
    
    (1,247
    )
    
    
    (106
    )Cash flow provided by (used in) operating activities
    
    
    32,240
    
    
    
    4,443
    
    
    
    (17
    )
  ® ®
  Current Trends
  CPA®:17 2009 10-K 29




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##### Table of Contents



Investment Opportunities
   Financing Conditions
   Corporate Defaults
   CPA®:17 2009 10-K 30




---



##### Table of Contents



Fundraising
  Commercial Mortgage-Backed Securities
   Redemptions and Distributions
  Inflation and Foreign Exchange Rates
   CPA®:17 2009 10-K 31




---



##### Table of Contents



How We Evaluate Results of Operations
     Results of Operations
    CPA®:17 2009 10-K 32




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##### Table of Contents



Years ended December 31,2009
    
    
    2008Rental income
    
    $
    18,333
    
    
    $
    6,630Interest income from direct financing leases
    
    
    29,117
    
    
    
    1,392$
    47,450
    
    
    $
    8,022
  Years ended December 31,Lessee (Date Acquired)
    
    2009
    
    
    2008The New York Times Company (3/2009) (a)
    
    $
    21,751
    
    
    $
    Life Time Fitness, Inc. (9/2008)
    
    
    6,847
    
    
    
    1,712Frontier Spinning Mills, Inc. (12/2008) (a)
    
    
    4,469
    
    
    
    12Actebis Peacock GmbH (7/2008) (a) (b)
    
    
    4,143
    
    
    
    2,065Waldaschaff
Automotive GmbH and Wagon Automotive Nagold GmbH (8/2008) (a) (b) (c)
    
    
    3,662
    
    
    
    1,695Laureate Education, Inc. (7/2008)
    
    
    2,893
    
    
    
    1,325Sabre Communications Corporation and Cellxion, LLC (8/2008)
    
    
    2,578
    
    
    
    1,083Other (b) (d)
    
    
    1,107
    
    
    
    130$
    47,450
    
    
    $
    8,022
 
 (a)
    
    These revenues are generated in consolidated ventures, generally with our affiliates, and
include lease revenues applicable to noncontrolling interests totaling $14.0 million and $1.2
million for the years ended December 31, 2009 and 2008, respectively.(b)
    
    Amounts are subject to fluctuations in foreign currency exchange rates.(c)
    
    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. While Wagon
Automotive Nagold GmbH has not filed for bankruptcy, 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).(d)
    
    Investments acquired between February 2008 and December 2009.  Lease Revenues
   Interest Income from Commercial Mortgage-Backed Securities
  CPA®:17 2009 10-K 33




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##### Table of Contents



Depreciation and Amortization
  General and Administrative
   Property Expenses
  Impairment Charges on Net Investments in Properties
   Impairment Charges on Commercial Mortgage-Backed Securities
  Income (Loss) from Equity Investments in Real Estate
  2009 
 2008
 CPA®:17 2009 10-K 34




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##### Table of Contents



Other Income and (Expenses)
   Interest Expense
  Provision for Income Taxes
  Net (Income) Loss Attributable to Noncontrolling Interests
   Net Loss Attributable to CPA ® :17  Global Shareholders
 ®
 ®
 Financial Condition
 Sources and Uses of Cash During the Year
  CPA®:17 2009 10-K 35




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##### Table of Contents



Operating Activities
  Investing Activities
  Financing Activities
     CPA®:17 2009 10-K 36




---



##### Table of Contents



Summary of Financing
  December 31,2009
    
    
    2008BalanceFixed rate
    
    $
    154,754
    
    
    $
    133,633Variable rate (a)
    
    
    146,154
    
    
    
    Total
    
    $
    300,908
    
    
    $
    133,633Percent of total debtFixed rate
    
    
    51
    %
    
    
    100
    %Variable rate (a)
    
    
    49
    %
    
    
    0
    %100
    %
    
    
    100
    %Weighted average interest rate at end of periodFixed rate
    
    
    7.1
    %
    
    
    6.9
    %Variable rate (a)
    
    
    5.3
    %
    
    
    N/A
 (a)
    
    Variable rate debt at December 31, 2009 consisted of (i) $27.0 million that has been
effectively converted to fixed rate debt through interest rate swap derivative instruments and
(ii) $119.2 million that is subject to an interest rate cap, but for which the applicable
interest rate was below the interest rate cap at December 31, 2009. Cash Resources
    Cash Requirements
  CPA®:17 2009 10-K 37




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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
    
    $
    300,908
    
    
    $
    5,776
    
    
    $
    12,625
    
    
    $
    119,693
    
    
    $
    162,814Deferred acquisition fees  principal
    
    
    7,922
    
    
    
    4,242
    
    
    
    3,680
    
    
    
    
    
    
    
    Interest on borrowings and deferred acquisition fees
    
    
    131,412
    
    
    
    18,877
    
    
    
    36,183
    
    
    
    33,171
    
    
    
    43,181Build-to-suit commitments(a)
    
    
    2,161
    
    
    
    2,161
    
    
    
    
    
    
    
    
    
    
    
    Operating and other lease commitments (b)
    
    
    807
    
    
    
    114
    
    
    
    236
    
    
    
    241
    
    
    
    216$
    443,210
    
    
    $
    31,170
    
    
    $
    52,724
    
    
    $
    153,105
    
    
    $
    206,211
 
 (a)
    
    Represents remaining build-to-suit commitment for a domestic project. Estimated total
construction costs for the project are currently projected to be $31.0 million, of which $28.8
million was funded at December 31, 2009.(b)
    
    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
    
    December 31, 2009
    
    
    Total Assets
    
    
    Party Debt
    
    
    Maturity DateBerry Plastics (a)
    
    
    50
    %
    
    $
    82,097
    
    
    $
    29,000
    
    
    
    3/2012Tesco plc (b)
    
    
    49
    %
    
    
    99,503
    
    
    
    49,894
    
    
    
    6/2016$
    181,600
    
    
    $
    78,894
 
 (a)
    
    During 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 due to an impairment
charge recognized to reduce the carrying value of our investment to the estimated fair value
of the ventures underlying properties. The venture subsequently obtained non-recourse
mortgage financing of $29.0 million with an annual interest rate and term of up to 10% and
five years, respectively.(b)
    
    Dollar amounts shown are based on the exchange rate of the Euro at December 31, 2009. We
acquired this investment in July 2009.  CPA®:17 2009 10-K 38




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##### Table of Contents



Subsequent Events
  Critical Accounting Estimates
  Classification of Real Estate Assets
  Identification of Tangible and Intangible Assets in Connection with Real Estate Acquisitions
    CPA®:17 2009 10-K 39




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##### Table of Contents



Basis of Consolidation
   Impairments
  Real Estate
  CPA®:17 2009 10-K 40




---



##### Table of Contents



Direct Financing Leases
  Assets Held for Sale
   Equity Investments in Real Estate
  Marketable Securities
  Commercial Mortgage-Backed Securities
   CPA®:17 2009 10-K 41




---



##### Table of Contents



Provision for Uncollected Amounts from Lessees
  Income Taxes
    Future Accounting Requirements
  CPA®:17 2009 10-K 42




---



##### Table of Contents



Item 7A.
    
    Quantitative and Qualitative Disclosures about Market Risk.
 Market Risks
   Interest Rate Risk
      CPA®:17 2009 10-K 43




---



##### Table of Contents



2010
    
    
    2011
    
    
    2012
    
    
    2013
    
    
    2014
    
    
    Thereafter
    
    
    Total
    
    
    Fair valueFixed rate debt
    
    $
    2,898
    
    
    $
    3,100
    
    
    $
    3,310
    
    
    $
    3,529
    
    
    $
    4,068
    
    
    $
    137,849
    
    
    $
    154,754
    
    
    $
    145,583Variable rate debt
    
    $
    2,878
    
    
    $
    3,040
    
    
    $
    3,175
    
    
    $
    3,316
    
    
    $
    108,780
    
    
    $
    24,965
    
    
    $
    146,154
    
    
    $
    146,154
  Foreign Currency Exchange Rate Risk
    Lease Revenues (a)
    
    2010
    
    
    2011
    
    
    2012
    
    
    2013
    
    
    2014
    
    
    Thereafter
    
    
    TotalEuro
    
    $
    12,275
    
    
    $
    12,339
    
    
    $
    12,339
    
    
    $
    12,339
    
    
    $
    12,339
    
    
    $
    142,178
    
    
    $
    203,809British pound sterling
    
    
    1,986
    
    
    
    2,167
    
    
    
    2,167
    
    
    
    2,167
    
    
    
    2,167
    
    
    
    43,337
    
    
    
    53,991$
    14,261
    
    
    $
    14,506
    
    
    $
    14,506
    
    
    $
    14,506
    
    
    $
    14,506
    
    
    $
    185,515
    
    
    $
    257,800
  Debt service (a) (b)
    
    2010
    
    
    2011
    
    
    2012
    
    
    2013
    
    
    2014
    
    
    Thereafter
    
    
    TotalEuro
    
    $
    5,155
    
    
    $
    5,151
    
    
    $
    5,130
    
    
    $
    5,108
    
    
    $
    5,105
    
    
    $
    51,835
    
    
    $
    77,484
 (a)
    
    Based on the applicable exchange rate at December 31, 2009. Contractual rents and debt
obligations are denominated in the functional currency of the country of each property.(b)
    
    Interest on variable rate debt obligations was calculated using the applicable annual
interest rates and balances outstanding at December 31, 2009. Our British pound sterling
investment had no debt at December 31, 2009. CPA®:17 2009 10-K 44




---



##### Table of Contents



Item 8.
    
    Financial Statements and Supplementary Data.
  Report of Independent Registered Public Accounting Firm
    
    
    46Consolidated Balance Sheets
    
    
    47Consolidated Statements of Operations
    
    
    48Consolidated Statements of Comprehensive Loss
    
    
    49Consolidated Statements of Equity
    
    
    50Consolidated Statements of Cash Flows
    
    
    51Notes to Consolidated Financial Statements
    
    
    53Schedule III  Real Estate and Accumulated Depreciation
    
    
    75Notes to Schedule III
    
    
    76
   CPA®:17 2009 10-K 45




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##### Table of Contents



REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
   
 CPA®:17 2009 10-K 46




---



##### Table of Contents



CORPORATE PROPERTY ASSOCIATES 17  GLOBAL INCORPORATED
 
 CONSOLIDATED BALANCE SHEETS
 (in thousands, except share and per share amounts)
 December 31,2009
    
    
    2008AssetsInvestments in real estate:Real estate, at cost
    
    $
    326,507
    
    
    $
    168,981Accumulated depreciation
    
    
    (5,957
    )
    
    
    (1,455
    )Net investments in properties
    
    
    320,550
    
    
    
    167,526Net investment in direct financing leases
    
    
    303,250
    
    
    
    83,924Real estate under construction
    
    
    31,037
    
    
    
    Equity investment in real estate
    
    
    43,495
    
    
    
    21,864Net investments in real estate
    
    
    698,332
    
    
    
    273,314Cash and cash equivalents
    
    
    281,554
    
    
    
    161,569Commercial mortgage-backed securities
    
    
    3,818
    
    
    
    20,309Intangible assets, net
    
    
    46,666
    
    
    
    18,291Deferred offering costs and other assets, net
    
    
    37,502
    
    
    
    5,589Total assets
    
    $
    1,067,872
    
    
    $
    479,072Liabilities and EquityLiabilities:Debt
    
    $
    300,908
    
    
    $
    133,633Accounts payable, accrued expenses and other liabilities
    
    
    4,533
    
    
    
    4,170Prepaid and deferred rental income
    
    
    13,236
    
    
    
    4,468Due to affiliates
    
    
    8,383
    
    
    
    4,797Distributions payable
    
    
    11,675
    
    
    
    4,507Total liabilities
    
    
    338,735
    
    
    
    151,575Commitments and contingenciesEquity:CPA®:17  Global shareholders equityPreferred stock, $0.001 par value; 50,000,000 shares authorized; none issued
    
    
    
    
    
    
    Common stock, $0.001 par value; 400,000,000 shares authorized; 80,135,401
and 34,625,497 shares issued, respectively
    
    
    82
    
    
    
    35Additional paid-in capital
    
    
    718,057
    
    
    
    310,732Distributions in excess of accumulated earnings
    
    
    (53,118
    )
    
    
    (11,056
    )Accumulated other comprehensive loss
    
    
    (4,902
    )
    
    
    (2,288
    )660,119
    
    
    
    297,423Less, treasury stock at cost, 248,833 shares at December 31, 2009
    
    
    (2,314
    )
    
    
    Total CPA®:17  Global shareholders equity
    
    
    657,805
    
    
    
    297,423Noncontrolling interests
    
    
    71,332
    
    
    
    30,074Total equity
    
    
    729,137
    
    
    
    327,497Total liabilities and equity
    
    $
    1,067,872
    
    
    $
    479,072
  CPA®:17 2009 10-K 47




---



##### Table of Contents



CORPORATE PROPERTY ASSOCIATES 17  GLOBAL INCORPORATED
 
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (in thousands, except share and per share amounts)
 Period from inception(February 20, 2007)Years ended December 31,
    
    
    through2009
    
    
    2008
    
    
    December 31, 2007RevenuesRental income
    
    $
    18,333
    
    
    $
    6,630
    
    
    $
    Interest income from direct financing leases
    
    
    29,117
    
    
    
    1,392
    
    
    
    Interest income from commercial mortgage-backed securities
    
    
    2,743
    
    
    
    1,658
    
    
    
    50,193
    
    
    
    9,680
    
    
    
    ExpensesDepreciation and amortization
    
    
    (5,324
    )
    
    
    (1,827
    )
    
    
    General and administrative
    
    
    (3,486
    )
    
    
    (2,041
    )
    
    
    (108
    )Property expenses
    
    
    (3,314
    )
    
    
    (807
    )
    
    
    Impairment charges on net investments in properties
    
    
    (8,271
    )
    
    
    
    
    
    
    Impairment charges on CMBS, net of noncredit portion of impairment
of $1,505 recognized in Other comprehensive loss
    
    
    (15,633
    )
    
    
    
    
    
    
    (36,028
    )
    
    
    (4,675
    )
    
    
    (108
    )Other Income and ExpensesOther interest income
    
    
    232
    
    
    
    1,129
    
    
    
    2Income (loss) from equity investment in real estate
    
    
    1,406
    
    
    
    (1,793
    )
    
    
    Other income and (expenses)
    
    
    (2,380
    )
    
    
    (1,762
    )
    
    
    Interest expense
    
    
    (10,823
    )
    
    
    (3,725
    )
    
    
    (11,565
    )
    
    
    (6,151
    )
    
    
    2Income (loss) before income taxes
    
    
    2,600
    
    
    
    (1,146
    )
    
    
    (106
    )Provision for income taxes
    
    
    (420
    )
    
    
    (504
    )
    
    
    Net Income (Loss)
    
    
    2,180
    
    
    
    (1,650
    )
    
    
    (106
    )(Less) Add: Net (income) loss attributable to noncontrolling interests
    
    
    (9,881
    )
    
    
    403
    
    
    
    Net Loss Attributable to CPA®:17  Global Shareholders
    
    $
    (7,701
    )
    
    $
    (1,247
    )
    
    $
    (106
    )Loss Per ShareNet loss attributable to CPA®:17  Global shareholders
    
    $
    (0.14
    )
    
    $
    (0.07
    )
    
    $
    (4.76
    )Weighted Average Shares Outstanding
    
    
    54,376,664
    
    
    
    17,273,533
    
    
    
    22,222
  CPA®:17 2009 10-K 48




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##### Table of Contents



CORPORATE PROPERTY ASSOCIATES 17  GLOBAL INCORPORATED
 
 CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
 (in thousands)
 Period from inception(February 20, 2007)Years ended December 31,
    
    
    through2009
    
    
    2008
    
    
    December 31, 2008Net Income (Loss)
    
    $
    2,180
    
    
    $
    (1,650
    )
    
    $
    (106
    )Other Comprehensive Loss:Foreign currency translation adjustment
    
    
    (682
    )
    
    
    (3,315
    )
    
    
    Change in unrealized loss on derivative instrument
    
    
    (468
    )
    
    
    
    
    
    
    Impairment loss on commercial mortgage-backed securities
    
    
    (1,505
    )
    
    
    
    
    
    
    (2,655
    )
    
    
    (3,315
    )
    
    
    Comprehensive loss
    
    
    (475
    )
    
    
    (4,965
    )
    
    
    (106
    )Amounts Attributable to Noncontrolling Interests:Net (income) loss
    
    
    (9,881
    )
    
    
    403
    
    
    
    Foreign currency translation adjustment
    
    
    (166
    )
    
    
    1,027
    
    
    
    Change in unrealized loss on derivative instrument
    
    
    207
    
    
    
    
    
    
    
    Comprehensive (income) loss attributable to noncontrolling interests
    
    
    (9,840
    )
    
    
    1,430
    
    
    
    Comprehensive Loss Attributable to CPA®:17  Global
Shareholders
    
    $
    (10,315
    )
    
    $
    (3,535
    )
    
    $
    (106
    )
  CPA®:17 2009 10-K 49




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##### Table of Contents



CORPORATE PROPERTY ASSOCIATES 17  GLOBAL INCORPORATED
 
 CONSOLIDATED STATEMENTS OF EQUITY
  (in thousands, except share and per 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 February 20, 2007
    
    
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Shares, $.001 par, issued to the advisor at
$9 per share
    
    
    22,222
    
    
    
    
    
    
    
    200
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    200
    
    
    
    
    
    
    
    200Net loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (106
    )
    
    
    
    
    
    
    
    
    
    
    (106
    )
    
    
    
    
    
    
    (106
    )Balance at December 31, 2007
    
    
    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 from noncontrolling interests
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    31,527
    
    
    
    31,527Distributions declared ($0.5578 per share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (9,703
    )
    
    
    
    
    
    
    
    
    
    
    (9,703
    )
    
    
    
    
    
    
    (9,703
    )Distributions to noncontrolling interests
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (23
    )
    
    
    (23
    )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
    
    
    45,244,803
    
    
    
    45
    
    
    
    404,649
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    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
    
    
    $
    729,137
  CPA®:17 2009 10-K 50




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##### Table of Contents



CORPORATE PROPERTY ASSOCIATES 17  GLOBAL INCORPORATED
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 (in thousands)
 Period from inception(February 20, 2007)Years ended December 31,
    
    
    through2009
    
    
    2008
    
    
    December 31, 2007Cash Flows  Operating ActivitiesNet income (loss)
    
    $
    2,180
    
    
    $
    (1,650
    )
    
    $
    (106
    )Adjustments to net income (loss):Depreciation and amortization, including intangible assets
    
    
    5,088
    
    
    
    1,841
    
    
    
    Straight-line rent adjustments, amortization of rent-related intangibles
and financing lease adjustments
    
    
    (3,425
    )
    
    
    (315
    )
    
    
    Income from equity investment in real estate in excess of distributions
received
    
    
    326
    
    
    
    1,793
    
    
    
    Issuance of shares to affiliate in satisfaction of fees due
    
    
    2,676
    
    
    
    590
    
    
    
    Amortization of discount on commercial mortgage-backed securities
    
    
    (668
    )
    
    
    (356
    )
    
    
    Realized loss on foreign currency transactions
    
    
    2,522
    
    
    
    363
    
    
    
    Unrealized loss on derivative instrument
    
    
    
    
    
    
    1,403
    
    
    
    Impairment charges on net investments in properties and
commercial mortgage-backed securities
    
    
    23,904
    
    
    
    
    
    
    
    Increase in accounts receivable and prepaid expenses
    
    
    (514
    )
    
    
    (414
    )
    
    
    (13
    )Increase in funds in escrow
    
    
    (3,108
    )
    
    
    (282
    )
    
    
    Increase in accounts payable and accrued expenses
    
    
    749
    
    
    
    2,453
    
    
    
    62Increase in prepaid and deferred rental income
    
    
    2,432
    
    
    
    2,317
    
    
    
    (Decrease) increase in due to affiliates
    
    
    78
    
    
    
    (3,300
    )
    
    
    40Net cash provided by (used in) operating activities
    
    
    32,240
    
    
    
    4,443
    
    
    
    (17
    )Cash Flows  Investing ActivitiesDistributions from equity investments in real estate in excess of equity income
    
    
    2,282
    
    
    
    
    
    
    
    Acquisitions of real estate and direct financing leases (a)
    
    
    (430,448
    )
    
    
    (273,517
    )
    
    
    Contributions to equity investments in real estate (a)
    
    
    (22,798
    )
    
    
    (23,074
    )
    
    
    Value added taxes recoverable on purchases of real estate
    
    
    (14,881
    )
    
    
    
    
    
    
    Purchase of marketable securities
    
    
    
    
    
    
    (19,965
    )
    
    
    Funds for future investments and construction placed in escrow
    
    
    (107,047
    )
    
    
    
    
    
    
    Funds for future investments released from escrow
    
    
    106,510
    
    
    
    
    
    
    
    Purchase of notes receivable
    
    
    (7,000
    )
    
    
    
    
    
    
    Payment of deferred acquisition fees to an affiliate
    
    
    (3,263
    )
    
    
    (1,831
    )
    
    
    Net cash used in investing activities
    
    
    (476,645
    )
    
    
    (318,387
    )
    
    
    Cash Flows  Financing ActivitiesDistributions paid
    
    
    (27,193
    )
    
    
    (5,196
    )
    
    
    Contributions from noncontrolling interests
    
    
    103,364
    
    
    
    31,527
    
    
    
    Distributions to noncontrolling interests
    
    
    (71,946
    )
    
    
    (23
    )
    
    
    Proceeds from mortgage notes payable
    
    
    170,805
    
    
    
    139,685
    
    
    
    Scheduled payments of mortgage principal
    
    
    (4,494
    )
    
    
    (540
    )
    
    
    Payment of mortgage deposits and deferred financing costs, net of deposits
refunded
    
    
    (4,574
    )
    
    
    
    
    
    
    Proceeds from issuance of shares, net of offering costs
    
    
    404,200
    
    
    
    310,232
    
    
    
    200Purchase of treasury stock
    
    
    (2,314
    )
    
    
    
    
    
    
    Net cash provided by financing activities
    
    
    567,848
    
    
    
    475,685
    
    
    
    200Change in Cash and Cash Equivalents During the YearEffect of exchange rate changes on cash
    
    
    (3,458
    )
    
    
    (355
    )
    
    
    Net increase in cash and cash equivalents
    
    
    119,985
    
    
    
    161,386
    
    
    
    183Cash and cash equivalents, beginning of year
    
    
    161,569
    
    
    
    183
    
    
    
    Cash and cash equivalents, end of year
    
    $
    281,554
    
    
    $
    161,569
    
    
    $
    183
  CPA®:17 2009 10-K 51




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##### Table of Contents



CORPORATE PROPERTY ASSOCIATES 17  GLOBAL INCORPORATED

CONSOLIDATED STATEMENTS OF CASH FLOWS, CONTINUED
 Noncash investing and financing activities:
 (a)
    
    The cost basis of real estate investments acquired during 2009 and 2008 also includes
deferred acquisition fees payable of $7.6 million and $5.4 million, respectively.
 Supplemental cash flow information:
 Years ended December 31,2009
    
    
    2008Interest paid, net of amounts capitalized
    
    $
    10,726
    
    
    $
    2,181Interest capitalized
    
    $
    1,088
    
    
    $
    Income taxes paid
    
    $
    507
    
    
    $
    135
   CPA®:17 2009 10-K 52




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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 Note 1. Organization and Offering
 Organization
   Public Offering
   Note 2. Summary of Significant Accounting Policies
 Basis of Consolidation
    CPA®:17 2009 10-K 53




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##### Table of Contents



Notes to Consolidated Financial Statements
 Use of Estimates
  Reclassifications and Revisions
  Purchase Price Allocation
     Real Estate Under Construction
  Cash and Cash Equivalents
  Commercial Mortgage Backed Securities
  CPA®:17 2009 10-K 54




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##### Table of Contents



Notes to Consolidated Financial Statements
 Other Assets and Other Liabilities
  Deferred Acquisition Fees Payable to Affiliate
  Treasury Stock
  Organization and Offering Costs
  Real Estate Leased to Others
    Operating leases
 Direct financing method
  CPA®:17 2009 10-K 55




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##### Table of Contents



Notes to Consolidated Financial Statements
 Acquisition Costs
   Depreciation
  Interest Capitalized in Connection with Real Estate Under Construction
  Impairments
  Real Estate
  CPA®:17 2009 10-K 56




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##### Table of Contents



Notes to Consolidated Financial Statements
 Direct Financing Leases
  Assets Held for Sale
   Equity Investments in Real Estate
  Marketable Securities
  Commercial Mortgage-Backed Securities
    CPA®:17 2009 10-K 57




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##### Table of Contents



Notes to Consolidated Financial Statements
  Assets
Held for Sale
    Foreign Currency Translation
    Derivative Instruments
   Income Taxes
  CPA®:17 2009 10-K 58




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##### Table of Contents



Notes to Consolidated Financial Statements
   Costs of Raising Capital
  Loss Per Share
  Future Accounting Requirements
  Note 3. Agreements and Transactions with Related Parties
  Transaction Fees
   CPA®:17 2009 10-K 59




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##### Table of Contents



Notes to Consolidated Financial Statements
  Asset Management Fee and Cash Distributions
   Organization and Offering Expenses
   Other Expenses
  CPA®:17 2009 10-K 60




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##### Table of Contents



Notes to Consolidated Financial Statements
  Joint Ventures and Other Transactions with Affiliates
    Note 4. Net Investments in Properties
 Net Investments in Properties
  2009
    
    
    2008Land
    
    $
    62,597
    
    
    $
    36,817Building
    
    
    263,910
    
    
    
    132,164Less: Accumulated depreciation
    
    
    (5,957
    )
    
    
    (1,455
    )$
    320,550
    
    
    $
    167,526
 Acquisitions of Real Estate
    Real Estate Under Construction
  CPA®:17 2009 10-K 61




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##### Table of Contents



Notes to Consolidated Financial Statements
 Other
   Years ending December 31,2010
    
    $
    28,3092011
    
    
    29,6072012
    
    
    29,9042013
    
    
    30,0412014
    
    
    30,164Thereafter through 2029
    
    
    418,476
  Note 5. Net Investment in Direct Financing Leases
  December 31,2009
    
    
    2008Minimum lease payments receivable
    
    $
    587,297
    
    
    $
    148,636Unguaranteed residual value
    
    
    301,474
    
    
    
    83,991888,771
    
    
    
    232,627Less: unearned income
    
    
    (585,521
    )
    
    
    (148,703
    )$
    303,250
    
    
    $
    83,924
  Years ending December 31,2010
    
    $
    31,4022011
    
    
    31,9182012
    
    
    32,2902013
    
    
    32,6682014
    
    
    33,052Thereafter through 2028
    
    
    425,967
  Acquisitions of Net Investments in Direct Financing Leases
 ®
 CPA®:17 2009 10-K 62




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##### Table of Contents



Notes to Consolidated Financial Statements
  Note 6. Equity Investments in Real Estate
   Ownership
    
    
    Carrying Value atInterest at
    
    
    December 31,Lessee
    
    December 31, 2009
    
    
    2009
    
    
    2008Berry Plastics (a)
    
    
    50
    %
    
    $
    21,414
    
    
    $
    21,864Tesco plc(b)
    
    
    49
    %
    
    
    22,081
    
    
    
    $
    43,495
    
    
    $
    21,864
 (a)
    
    See Acquisitions of Equity Investments in Real Estate  2008 below for information regarding
transactions related to this venture during 2009 and 2008.(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. See Acquisitions of
Equity Investments in Real Estate  2009 below.  December 31,2009
    
    
    2008Assets
    
    $
    181,600
    
    
    $
    85,177Liabilities
    
    
    (84,522
    )
    
    
    (40,073
    )Partners/members equity
    
    $
    97,078
    
    
    $
    45,104
 December 31,2009
    
    
    2008
    
    
    2007Revenue
    
    $
    10,080
    
    
    $
    6,660
    
    
    $
    218Expenses
    
    
    (8,330
    )
    
    
    (5,383
    )
    
    
    (100
    )Gain on extinguishment of debt (a)
    
    
    6,512
    
    
    
    
    
    
    
    Net income
    
    $
    8,262
    
    
    $
    1,277
    
    
    $
    118
 (a)
    
    Represents gain recognized in connection with repayment of debt at a discount during 2009.
See Acquisitions of Equity Investments in Real Estate  2008 below. CPA®:17 2009 10-K 63




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##### Table of Contents



Notes to Consolidated Financial Statements
  Acquisitions of Equity Investments in Real Estate
    Note 7. Securities Held to Maturity
  Description
    
    Face Value
    
    
    Amortized Cost
    
    
    Unrealized Loss
    
    
    Estimated Fair  ValueCMBS
    
    $
    33,284
    
    
    $
    3,818
    
    
    $
    
    
    
    $
    3,818
   Rating (a)
    
    Amortized CostB
    
    $
    1,752B+
    
    
    1,306BB-
    
    
    760$
    3,818
 
 (a)
    
    Ratings are those of Standard & Poors Ratings Services, a division of The McGraw-Hill
Companies, Inc. CPA®:17 2009 10-K 64




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##### Table of Contents



Notes to Consolidated Financial Statements
  Year EndedDecember 31, 2009Total other-than-temporary impairment charges recognized
    
    $
    17,138Less: noncredit portion recognized in Other comprehensive loss
    
    
    (1,505
    )Credit portion of other-than-temporary impairment charges
    
    $
    15,633
  Note 8. Intangibles
   December 31,2009
    
    
    2008Lease intangibles:In-place lease
    
    $
    26,518
    
    
    $
    12,796Tenant relationship
    
    
    4,850
    
    
    
    3,225Above-market rent
    
    
    16,788
    
    
    
    2,707Less: Accumulated amortization
    
    
    (1,490
    )
    
    
    (437
    )$
    46,666
    
    
    $
    18,291Below-market rent
    
    $
    (7,244
    )
    
    $
    (2,298
    )Less: accumulated amortization
    
    
    121
    
    
    
    30$
    (7,123
    )
    
    $
    (2,268
    )
  Note 9. Fair Value Measurements
  CPA®:17 2009 10-K 65




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##### Table of Contents



Notes to Consolidated Financial Statements
 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
    
    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
    )
    
    $
    
    December 31, 2009
    
    
    December 31, 2008Carrying Value
    
    
    Fair Value
    
    
    Carrying Value
    
    
    Fair ValueDebt
    
    $
    300,908
    
    
    $
    291,737
    
    
    $
    133,633
    
    
    $
    133,436CMBS (a)
    
    
    3,818
    
    
    
    3,818
    
    
    
    20,309
    
    
    
    4,562
 
 (a)
    
    Carrying value represents historical cost for CMBS, inclusive of impairment charges
recognized during 2009 (Note 7).  Items Measured at Fair Value on a Non-Recurring Basis
  CPA®:17 2009 10-K 66




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##### Table of Contents



Notes to Consolidated Financial Statements
  Year ended December 31, 2009
    
    
    Year ended December 31, 2008Total Fair Value
    
    
    Total Impairment
    
    
    Total Fair Value
    
    
    Total ImpairmentMeasurements
    
    
    Charges
    
    
    Measurements
    
    
    ChargesAssets:Net investments in properties
    
    $
    17,779
    
    
    $
    7,471
    
    
    $
    
    
    
    $
    Net investments in direct financing leases
    
    
    28,833
    
    
    
    800
    
    
    
    
    
    
    
    Equity investments in real estate
    
    
    24,244
    
    
    
    2,930
    
    
    
    21,864
    
    
    
    2,120Commercial
mortgage-backed securities (a)
    
    
    3,818
    
    
    
    17,138
    
    
    
    
    
    
    
    $
    74,674
    
    
    $
    28,339
    
    
    $
    21,864
    
    
    $
    2,120
 (a)
    
    Of the total other-than-temporary impairment charges recognized on our CMBS during 2009,
$15.6 million related to credit losses and were recognized in earnings and $1.5 million related to
noncredit factors and were recognized in Other comprehensive loss in equity (Note 7). Note 10. Risk Management and Use of Derivative Financial Instruments
 Risk Management
  Commercial Mortgage-Backed Securities
  Foreign Currency Exchange
  CPA®:17 2009 10-K 67




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##### Table of Contents



Notes to Consolidated Financial Statements
 Use of Derivative Financial Instruments
    Asset Derivatives FairValue atDerivatives Designated as Hedging Instruments
    
    Balance Sheet Location
    
    December 31, 2009Interest rate cap
    
    Other assets
    
    $
    2,985Interest rate swap
    
    Other liabilities
    
    
    (20
    )$
    2,965
   Amount of Gain (Loss)Recognized in OCI onDerivative (Effective Portion)Year EndedDerivatives in Cash Flow Hedging Relationships
    
    December 31, 2009Interest rate cap (a)
    
    $
    (461
    )Interest rate swap
    
    
    (20
    )Total
    
    $
    (481
    )
 Amount of Gain (Loss)Recognized in Incomeon DerivativesLocation of Gain (Loss)
    
    Year EndedDerivatives not in Cash Flow Hedging Relationships
    
    Recognized in Income
    
    December 31, 2008Embedded credit derivative (b)
    
    Other income and (expenses)
    
    $
    (1,404
    )Total
    
    
    
    $
    (1,404
    )
 
 (a)
    
    For the year ended December 31, 2009, losses of $0.2 million were attributable to
noncontrolling interests. We had no derivatives in cash flow hedging relationships prior to
2009.(b)
    
    For the year ending December 31, 2008, losses of $0.5 million were attributable to
noncontrolling interests. No gains or losses were recognized in income related to this
embedded credit derivative during 2009. CPA®:17 2009 10-K 68




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##### Table of Contents



Notes to Consolidated Financial Statements
  Interest Rate Swaps and Caps
   Notional
    
    
    Effective
    
    
    Effective
    
    
    Expiration
    
    
    Fair Value atType
    
    Amount
    
    
    Interest Rate
    
    
    Date
    
    
    Date
    
    
    December 31, 20093-Month LIBOR
    
    Pay-fixed swap(a)
    
    $
    27,000
    
    
    
    3.7
    %
    
    
    1/2010
    
    
    
    12/2019
    
    
    $
    (20
    )3-Month LIBOR
    
    Interest rate cap (b)
    
    
    119,154
    
    
    
    8.8
    %
    
    
    8/2009
    
    
    
    8/2014
    
    
    
    2,985$
    2,965
 
 (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 interest rate
cap at December 31, 2009. Inclusive of noncontrolling interests in the notional amount and
fair value of the swap of $53.6 million and $1.3 million, respectively.  Embedded Credit Derivative
  Other
   CPA®:17 2009 10-K 69




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##### Table of Contents



Notes to Consolidated Financial Statements
 Concentration of Credit Risk
    Note 11. Impairment Charges on Net Investments in Properties
   Years ended December 31,2009
    
    
    2008Net investments in properties (a)
    
    $
    7,471
    
    
    $
    Net investment in direct financing lease (a)
    
    
    800
    
    
    
    Total impairment charges included in expenses
    
    
    8,271
    
    
    
    Equity investments in real estate (b)
    
    
    2,930
    
    
    
    2,120Total impairment charges
    
    $
    11,201
    
    
    $
    2,120
 (a)
    
    Inclusive of amounts attributable to noncontrolling interests totaling $2.8 million.(b)
    
    Impairment charges on our equity investments are included in Income (loss) from equity
investments in real estate on our consolidated statement of operations. CPA®:17 2009 10-K 70




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##### Table of Contents



Notes to Consolidated Financial Statements
 Impairment Charges
 Waldaschaff Automotive GmbH and Wagon Automotive Nagold GmbH
  Berry Plastics
  Note 12. Debt
   Years ending December 31,
    
    Total2010
    
    $
    5,7762011
    
    
    6,1402012
    
    
    6,4852013
    
    
    6,8452014
    
    
    112,848Thereafter through 2028
    
    
    162,814Total
    
    $
    300,908
 Financing Activity
   CPA®:17 2009 10-K 71




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##### Table of Contents



Notes to Consolidated Financial Statements
  Note 13. Commitments and Contingencies
  Note 14. Equity
 Distributions
  Years Ended December 31,2009
    
    
    2008Ordinary income
    
    $
    0.32
    
    
    $
    0.32Return of capital
    
    
    0.31
    
    
    
    0.24Total distributions
    
    $
    0.63
    
    
    $
    0.56
   Accumulated Other Comprehensive Loss
  December 31,2009
    
    
    2008Foreign currency translation adjustment
    
    $
    (3,136
    )
    
    $
    (2,288
    )Unrealized loss on derivative instrument
    
    
    (261
    )
    
    
    Impairment loss on commercial mortgage-backed securities
    
    
    (1,505
    )
    
    
    Accumulated other comprehensive loss
    
    $
    (4,902
    )
    
    $
    (2,288
    )
 CPA®:17 2009 10-K 72




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##### Table of Contents



Notes to Consolidated Financial Statements
 Note 15. Segment Information
  2009
    
    Domestic
    
    

Foreign (a)
    
    
    Total CompanyRevenues
    
    $
    41,830
    
    
    $
    8,363
    
    
    $
    50,193Total long-lived assets (b)
    
    
    506,604
    
    
    
    191,728
    
    
    
    698,332
 2008
    
    Domestic
    
    

Foreign (a)
    
    
    Total CompanyRevenues
    
    $
    5,919
    
    
    $
    3,761
    
    
    $
    9,680Total long-lived assets (b)
    
    
    174,942
    
    
    
    98,372
    
    
    
    273,314
 (a)
    
    Consists of operations in Germany, and in 2009, also in Hungary, Poland, Spain and the United
Kingdom.(b)
    
    Consists of real estate, net; net investment in direct financing leases and equity
investments in real estate. Note 16. Selected Quarterly Financial Data (unaudited)
  Three months endedMarch 31, 2009
    
    
    June 30, 2009
    
    
    September 30, 2009
    
    
    December 31, 2009Revenues
    
    $
    8,709
    
    
    $
    13,584
    
    
    $
    13,453
    
    
    $
    14,447Operating expenses
    
    
    (3,690
    )
    
    
    (3,536
    )
    
    
    (1,467
    )
    
    
    (27,335
    )Net income (loss) (a)
    
    
    1,515
    
    
    
    8,174
    
    
    
    8,415
    
    
    
    (15,924
    )Less: Net (income) loss attributable to
noncontrolling interests
    
    
    (1,217
    )
    
    
    (3,730
    )
    
    
    (3,864
    )
    
    
    (1,070
    )Net income (loss) attributable to
CPA®17 - Global Shareholders
    
    
    298
    
    
    
    4,444
    
    
    
    4,551
    
    
    
    (16,994
    )Earnings (loss) per share attributable to
CPA®17 - Global Shareholders
    
    
    0.01
    
    
    
    0.09
    
    
    
    0.08
    
    
    
    (0.32
    )Distributions declared per share
    
    
    0.1562
    
    
    
    0.1575
    
    
    
    0.1587
    
    
    
    0.1600
 Three months endedMarch 31, 2008
    
    
    June 30, 2008
    
    
    September 30, 2008
    
    
    December 31, 2008Revenues
    
    $
    
    
    
    $
    322
    
    
    $
    3,590
    
    
    $
    5,768Operating expenses
    
    
    (306
    )
    
    
    (671
    )
    
    
    (1,592
    )
    
    
    (2,106
    )Net (loss) income (b)
    
    
    (159
    )
    
    
    165
    
    
    
    722
    
    
    
    (2,378
    )Less: Net (income) loss attributable to
noncontrolling interests
    
    
    
    
    
    
    
    
    
    
    (115
    )
    
    
    518Net (loss) income attributable to
CPA®17 - Global Shareholders
    
    
    (159
    )
    
    
    165
    
    
    
    607
    
    
    
    (1,860
    )(Loss) earnings per share attributable to
CPA®17 - Global Shareholders
    
    
    (0.05
    )
    
    
    0.01
    
    
    
    0.03
    
    
    
    (0.06
    )Distributions declared per share
    
    
    0.1375
    
    
    
    0.1375
    
    
    
    0.1390
    
    
    
    0.1438
 
 (a)
    
    Net loss for the three months ended December 31, 2009 includes the recognition of
other-than-temporary impairment charges of $15.6 million recognized in earnings in connection
with our CMBS investments (Note 7) and impairment charges of $8.3 million related to certain
of our net investments in real estate (Note 11).(b)
    
    Net loss for the three months ended December 31, 2008 includes the recognition of an
other-than-temporary impairment charge of $2.1 million related to an equity investment in real
estate (Note 11) and an unrealized loss of $1.4 million, inclusive of noncontrolling interest
of $0.5 million, to write down the value of an embedded credit derivative (Note 10). CPA®:17 2009 10-K 73




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Notes to Consolidated Financial Statements
 Note 17. Pro Forma Financial Information (unaudited)
   Period from InceptionYears ended December 31,
    
    
    (February 20, 2007) to2009
    
    
    2008
    
    
    December 31, 2007Pro forma total revenues
    
    $
    68,221
    
    
    $
    68,862
    
    
    $
    63,305Pro forma net income (a)
    
    
    6,212
    
    
    
    34,576
    
    
    
    38,582Less: Net
income attributable to noncontrolling interests
    
    
    (8,988
    )
    
    
    (10,013
    )
    
    
    (13,656
    )Pro forma net income attributable to CPA®:17 - Global
Shareholders
    
    
    (2,776
    )
    
    
    24,563
    
    
    
    24,926Pro forma earnings per share (a):Net income attributable to CPA®:17 - Global Shareholders
    
    
    (0.03
    )
    
    
    0.31
    
    
    
    0.31
 (a)
    
    Pro forma net income and pro forma earnings per share for the year ended December 31, 2009
reflect the recognition of other-than-temporary impairment charges of $15.6 million incurred
in connection with our CMBS investments (Note 7) and impairment charges of $11.2 million
related to certain of our net investments in real estate and equity investments in real estate
(Note 11). Pro forma net income and pro forma earnings per share for the year ended December
31, 2008 reflect the impact of an other-than-temporary impairment charge of $2.1 million
related to an equity investment in real estate (Note 11) and an unrealized loss of $1.4
million, inclusive of noncontrolling interest of $0.5 million, to write down the value of an
embedded credit derivative (Note 10). Pro forma net income includes actual interest income
generated from the proceeds of our public offering. A portion of these proceeds was used to
fund the investments included in the foregoing pro forma financial information.  Note 18. Subsequent Events
   CPA®:17 2009 10-K 74




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##### Table of Contents



CORPORATE PROPERTY ASSOCIATES 17  GLOBAL INCORPORATED
 
 SCHEDULE III  REAL ESTATE and ACCUMULATED DEPRECIATION
at December 31, 2009  (in thousands)
 Life on whichDepreciationin LatestCosts Capitalized
    
    
    Increase
    
    
    Gross Amount at which Carried
    
    
    
    
    
    
    
    
    
    
    Statement ofInitial Cost to Company
    
    
    Subsequent to
    
    
    (Decrease) in Net
    
    
    at Close of Period (c)
    
    
    Accumulated
    
    
    Date
    
    
    Income isDescription
    
    Encumbrances
    
    
    Land
    
    
    Buildings
    
    
    Acquisition (a)
    
    
    Investments (b)
    
    
    Land
    
    
    Buildings
    
    
    Total
    
    
    Depreciation (c)
    
    
    Acquired
    
    
    ComputedReal Estate Under Operating Leases:Industrial facility in Norfolk, NE
    
    $
    1,881
    
    
    $
    625
    
    
    $
    1,713
    
    
    $
    
    
    
    $
    107
    
    
    $
    625
    
    
    $
    1,820
    
    
    $
    2,445
    
    
    $
    96
    
    
    Jun. 2008
    
    30 yrs.Residential and office facilities in Soest, Germany
and warehouse/distribution facility in Bad
Wünnenbeg, Germany
    
    
    32,034
    
    
    
    3,193
    
    
    
    45,932
    
    
    
    
    
    
    
    (4,394
    )
    
    
    2,891
    
    
    
    41,840
    
    
    
    44,731
    
    
    
    1,664
    
    
    Jul. 2008
    
    36 yrs.Educational facility in Chicago, IL
    
    
    16,451
    
    
    
    6,300
    
    
    
    20,509
    
    
    
    
    
    
    
    (526
    )
    
    
    6,300
    
    
    
    19,983
    
    
    
    26,283
    
    
    
    1,025
    
    
    Jul. 2008
    
    30 yrs.Office/industrial facility in Alvarado, TX and
industrial facility in Bossier City, LA
    
    
    15,712
    
    
    
    2,725
    
    
    
    25,233
    
    
    
    
    
    
    
    (3,395
    )
    
    
    2,725
    
    
    
    21,838
    
    
    
    24,563
    
    
    
    839
    
    
    Aug. 2008
    
    25 - 40 yrs.Industrial
facility in Waldaschaff, Germany
    
    
    9,833
    
    
    
    10,373
    
    
    
    16,708
    
    
    
    
    
    
    
    (8,662
    )
    
    
    6,969
    
    
    
    11,450
    
    
    
    18,419
    
    
    
    639
    
    
    Aug. 2008
    
    15 yrs.Retail facilities in Phoenix, AZ and Columbia, MD
    
    
    38,931
    
    
    
    14,500
    
    
    
    48,865
    
    
    
    
    
    
    
    (2,062
    )
    
    
    14,500
    
    
    
    46,803
    
    
    
    61,303
    
    
    
    1,463
    
    
    Sep. 2008
    
    40 yrs.Transportation facility in Birmingham, United Kingdom
    
    
    
    
    
    
    3,591
    
    
    
    15,810
    
    
    
    949
    
    
    
    (219
    )
    
    
    3,525
    
    
    
    16,606
    
    
    
    20,131
    
    
    
    11
    
    
    Sep. 2009
    
    40 yrs.Retail facilities in Gorzow, Poland
    
    
    
    
    
    
    1,095
    
    
    
    13,947
    
    
    
    
    
    
    
    (358
    )
    
    
    1,068
    
    
    
    13,616
    
    
    
    14,684
    
    
    
    78
    
    
    Oct. 2009
    
    40 yrs.Retail facilities in 13 locations in Spain
    
    
    
    
    
    
    17,586
    
    
    
    26,678
    
    
    
    
    
    
    
    18
    
    
    
    17,594
    
    
    
    26,688
    
    
    
    44,282
    
    
    
    19
    
    
    Dec. 2009
    
    20 yrs.Office facility in The Woodlands, TX
    
    
    27,662
    
    
    
    1,400
    
    
    
    41,502
    
    
    
    
    
    
    
    
    
    
    
    1,400
    
    
    
    41,502
    
    
    
    42,902
    
    
    
    86
    
    
    Dec. 2009
    
    40 yrs.Office facility in Hoffman Estates, IL
    
    
    
    
    
    
    5,000
    
    
    
    21,764
    
    
    
    
    
    
    
    
    
    
    
    5,000
    
    
    
    21,764
    
    
    
    26,764
    
    
    
    37
    
    
    Dec. 2009
    
    40 yrs.$
    142,504
    
    
    $
    66,388
    
    
    $
    278,661
    
    
    $
    949
    
    
    $
    (19,491
    )
    
    $
    62,597
    
    
    $
    263,910
    
    
    $
    326,507
    
    
    $
    5,957
 Gross Amount atCosts Capitalized
    
    
    Increase
    
    
    which CarriedInitial Cost to Company
    
    
    Subsequent to
    
    
    (Decrease) in Net
    
    
    at Close of
    
    
    DateDescription
    
    Encumbrances
    
    
    Land
    
    
    Buildings
    
    
    Acquisition (a)
    
    
    Investments (b)
    
    
    Period Total
    
    
    AcquiredDirect Financing Method:Office/industrial facility in Nagold, Germany
    
    $
    15,949
    
    
    $
    6,012
    
    
    $
    41,493
    
    
    $
    
    
    
    $
    (18,672
    )
    
    $
    28,833
    
    
    Aug. 2008Industrial facilities in Sanford, NC and Mayodan, NC
    
    
    23,301
    
    
    
    3,100
    
    
    
    35,766
    
    
    
    
    
    
    
    (57
    )
    
    
    38,809
    
    
    Dec. 2008Office facility in New York City, NY
    
    
    119,154
    
    
    
    
    
    
    
    233,720
    
    
    
    
    
    
    
    1,888
    
    
    
    235,608
    
    
    Mar. 2009$
    158,404
    
    
    $
    9,112
    
    
    $
    310,979
    
    
    $
    
    
    
    $
    (16,841
    )
    
    $
    303,250
 CPA®:17 2009 10-K 75




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CORPORATE
PROPERTY ASSOCIATES 17  GLOBAL INCORPORATED
 
 NOTES to SCHEDULE III  REAL ESTATE and ACCUMULATED DEPRECIATION
 (a)
    
    Consists of the costs of improvements subsequent to purchase and acquisition costs including
construction costs on build-to-suit transactions, legal fees, appraisal fees, title costs and
other related professional fees.
 (b)
    
    The increase (decrease) in net investment is primarily due to (i) the amortization of
unearned income from net investment in direct financing leases, which produces a periodic rate
of return that at times may be greater or less than lease payments received, (ii) sales of
properties, (iii) impairment charges, and (iv) changes in foreign currency exchange rates.
 (c)
    
    Reconciliation of real estate and accumulated depreciation (in thousands):
 Reconciliation of Real EstateSubject to Operating LeasesDecember 31,2009
    
    
    2008Balance at beginning of year
    
    $
    168,981
    
    
    $
    Additions
    
    
    149,323
    
    
    
    180,076Foreign currency translation adjustment
    
    
    (282
    )
    
    
    (5,638
    )Impairment charges
    
    
    (7,700
    )
    
    
    Reclassification from (to) direct
financing lease, intangible asset or
escrow
    
    
    16,185
    
    
    
    (5,457
    )Balance at close of year
    
    $
    326,507
    
    
    $
    168,981
 Reconciliation ofAccumulated DepreciationDecember 31,2009
    
    
    2008Balance at beginning of year
    
    $
    1,455
    
    
    $
    Depreciation expense
    
    
    4,468
    
    
    
    1,455Foreign currency translation adjustment
    
    
    34
    
    
    
    Balance at close of year
    
    $
    5,957
    
    
    $
    1,455
  CPA®:17 2009 10-K 76




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##### Table of Contents



BPLAST LANDLORD (DE) LLC
 Report of Independent Auditors
    
    
    78Balance Sheets
    
    
    79Statements of Income
    
    
    80Statements of Comprehensive Income
    
    
    81Statements of Members Equity
    
    
    82Statements of Cash Flows
    
    
    83Notes to Financial Statements
    
    
    84
 CPA®:17 2009 10-K 77




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##### Table of Contents



REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
   /s/ PricewaterhouseCoopers LLPNew York, New YorkMarch 25,
2009
 CPA®:17 2009 10-K 78




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##### Table of Contents



BPLAST LANDLORD (DE) LLC
 
 BALANCE SHEETS
 December 31,2009
    
    
    2008(UNAUDITED)Assets:Real estate, net
    
    $
    77,625,485
    
    
    $
    80,355,072Cash and cash equivalents
    
    
    15,817
    
    
    
    Intangible assets, net
    
    
    4,181,211
    
    
    
    4,409,169Other assets, net
    
    
    274,498
    
    
    
    412,729Total assets
    
    $
    82,097,011
    
    
    $
    85,176,970Liabilities and Members Equity:Liabilities:Non-recourse debt
    
    $
    29,000,000
    
    
    $
    39,071,069Deferred and prepaid rental income
    
    
    738,123
    
    
    
    764,518Accrued expenses
    
    
    100,035
    
    
    
    222,003Total liabilities
    
    
    29,838,158
    
    
    
    40,057,590Members Equity:Members equity
    
    
    42,725,747
    
    
    
    43,709,001Accumulated earnings
    
    
    9,507,408
    
    
    
    1,410,379Accumulated other comprehensive
income
    
    
    25,698
    
    
    
    Total members equity
    
    
    52,258,853
    
    
    
    45,119,380Total liabilities and members equity
    
    $
    82,097,011
    
    
    $
    85,176,970
  CPA®:17 2009 10-K 79




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##### Table of Contents



BPLAST LANDLORD (DE) LLC
 
 STATEMENTS OF INCOME
 Period frominception(November 9, 2007)Years ended December 31,
    
    
    through2009
    
    
    2008
    
    
    December 31, 2007(UNAUDITED)
    
    
    
    
    
    
    (UNAUDITED)RevenuesRental income
    
    $
    6,640,731
    
    
    $
    6,651,343
    
    
    $
    218,327Other operating income
    
    
    2,411
    
    
    
    8,198
    
    
    
    6,643,142
    
    
    
    6,659,541
    
    
    
    218,327Operating ExpensesDepreciation and amortization
    
    
    (2,811,881
    )
    
    
    (2,811,881
    )
    
    
    (100,149
    )Property expense
    
    
    (25,112
    )
    
    
    (19,753
    )
    
    
    General and administrative
    
    
    (12,367
    )
    
    
    (300
    )
    
    
    (2,849,360
    )
    
    
    (2,831,934
    )
    
    
    (100,149
    )Other Income and ExpensesGain on extinguishment of debt
    
    
    6,511,723
    
    
    
    Interest expense
    
    
    (2,208,476
    )
    
    
    (2,535,406
    )
    
    
    4,303,247
    
    
    
    (2,535,406
    )
    
    
    Net income
    
    $
    8,097,029
    
    
    $
    1,292,201
    
    
    $
    118,178
  CPA®:17 2009 10-K 80




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##### Table of Contents



BPLAST LANDLORD (DE) LLC
 
 STATEMENTS OF COMPREHENSIVE INCOME
 Period from 
inception(November 9, 2007)Years ended December 31,
    
    
    through2009
    
    
    2008
    
    
    December 31, 2007(UNAUDITED)
    
    
    
    
    
    
    (UNAUDITED)Net Income
    
    $
    8,097,029
    
    
    $
    1,292,201
    
    
    $
    118,178Other Comprehensive IncomeChange in
unrealized gain on derivative instrument
    
    
    25,698
    
    
    
    
    
    
    
    Comprehensive Income
    
    $
    8,122,727
    
    
    $
    1,292,201
    
    
    $
    118,178
  CPA®:17 2009 10-K 81




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##### Table of Contents



BPLAST LANDLORD (DE) LLC
 
 STATEMENTS OF MEMBERS EQUITY
 
 Managing
    
    
    Non-ManagingMember
    
    
    Members
    
    
    TotalBalance, November 9, 2007
    
    $
    
    
    
    $
    
    
    
    $
    Contributions
    
    
    435,205
    
    
    
    86,605,789
    
    
    
    87,040,994Distributions
    
    
    (3,911
    )
    
    
    (778,335
    )
    
    
    (782,246
    )Net income
    
    
    591
    
    
    
    117,587
    
    
    
    118,178Balance, December 31, 2007
    
    
    431,885
    
    
    
    85,945,041
    
    
    
    86,376,926Contributions
    
    
    305
    
    
    
    60,773
    
    
    
    61,078Distributions
    
    
    (213,054
    )
    
    
    (42,397,771
    )
    
    
    (42,610,825
    )Net income
    
    
    6,461
    
    
    
    1,285,740
    
    
    
    1,292,201Balance, December 31, 2008
    
    
    225,597
    
    
    
    44,893,783
    
    
    
    45,119,380Contributions
    
    
    21,252
    
    
    
    4,229,191
    
    
    
    4,250,443Distributions
    
    
    (26,168
    )
    
    
    (5,207,529
    )
    
    
    (5,233,697
    )Net income
    
    
    40,485
    
    
    
    8,056,544
    
    
    
    8,097,029Other comprehensive income:Change in unrealized gain
on derivative instruments
    
    
    128
    
    
    
    25,570
    
    
    
    25,698Balance, December 31, 2009
    
    $
    261,294
    
    
    $
    51,997,559
    
    
    $
    52,258,853
  CPA®:17 2009 10-K 82




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##### Table of Contents



BPLAST LANDLORD (DE) LLC
 
 STATEMENTS OF CASH FLOWS
 Period frominception(November 9, 2007)Years ended December 31,
    
    
    through2009
    
    
    2008
    
    
    December 31, 2007(UNAUDITED)
    
    
    
    
    
    
    (UNAUDITED)Cash flows from operating activities:Net income
    
    $
    8,097,029
    
    
    $
    1,292,201
    
    
    $
    118,178Adjustments to reconcile net income to net cash provided
by operating activities:Depreciation and amortization, including intangible
assets
and deferred financing costs
    
    
    3,128,853
    
    
    
    2,829,963
    
    
    
    100,149Amortization of rent-related intangibles
    
    
    
    
    
    
    (731
    )
    
    
    (26
    )Gain on extinguishment of debt
    
    
    (6,511,723
    )
    
    
    
    
    
    
    Decrease (increase) in accounts receivable
    
    
    147,589
    
    
    
    (197,548
    )
    
    
    (Decrease) increase in prepaid rental income
    
    
    
    
    
    
    (563,945
    )
    
    
    563,945(Decrease) increase in accrued expenses
    
    
    (121,969
    )
    
    
    222,003
    
    
    
    Net cash provided by operating activities
    
    
    4,739,779
    
    
    
    3,581,943
    
    
    
    782,246Cash flows from investing activities:Acquisition of real eastate
    
    
    
    
    
    
    
    
    
    
    (86,910,994
    )Proceeds from sale of land
    
    
    120,000
    
    
    
    
    
    
    
    Funds placed in escrow for future improvements
    
    
    
    
    
    
    (36,000
    )
    
    
    Funds released from escrow for future improvements
    
    
    36,000
    
    
    
    
    
    
    
    Net cash
provided by (used in) investing activities
    
    
    156,000
    
    
    
    (36,000
    )
    
    
    (86,910,994
    )Cash flows from financing activities:Distributions to members
    
    
    (5,233,696
    )
    
    
    (42,610,825
    )
    
    
    (782,246
    )Contributions from members
    
    
    4,250,443
    
    
    
    61,078
    
    
    
    87,040,994Proceeds from non-recourse mortgage
    
    
    29,000,000
    
    
    
    39,400,000
    
    
    
    Payment of mortgage principal
    
    
    (32,559,346
    )
    
    
    (328,931
    )
    
    
    Payment of mortgage deposits and deferred financing costs,
net of deposits refunded
    
    
    (337,363
    )
    
    
    (67,265
    )
    
    
    (130,000
    )Net cash used in financing activities
    
    
    (4,879,962
    )
    
    
    (3,545,943
    )
    
    
    86,128,748Net change in cash and cash equivalents
    
    
    15,817
    
    
    
    
    
    
    
    Cash and cash equivalents, beginning of year
    
    
    
    
    
    
    
    
    
    
    Cash and cash equivalents, end of year
    
    $
    15,817
    
    
    $
    
    
    
    $
    Supplemental disclosure:Interest paid
    
    $
    2,036,252
    
    
    $
    2,295,320
    
    
    $
    
  CPA®:17 2009 10-K 83




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##### Table of Contents



BPLAST LANDLORD (DE) LLC
 
 NOTES TO FINANCIAL STATEMENTS
 
 Note 1. Organization and Business
   Note 2. Summary of Significant Accounting Policies
 Use of Estimates
  Real Estate Leased to Others
      CPA®:17 2009 10-K 84




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##### Table of Contents



BPLAST LANDLORD (DE) LLC
NOTES TO FINANCIAL STATEMENTS
   Cash and Cash Equivalents
  Other Assets
  Depreciation
  Impairments
  Derivative Instruments
  Income Taxes
  CPA®:17 2009 10-K 85




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##### Table of Contents



BPLAST LANDLORD (DE) LLC
NOTES TO FINANCIAL STATEMENTS
 Note 3. Real Estate
  2009
    
    
    2008(UNAUDITED)Land
    
    $
    4,650,000
    
    
    $
    4,770,000Buildings
    
    
    78,287,602
    
    
    
    78,287,60282,937,602
    
    
    
    83,057,602Less: Accumulated depreciation
    
    
    (5,312,117
    )
    
    
    (2,702,530
    )$
    77,625,485
    
    
    $
    80,355,072
 
 (a)
    
    In 2009, we sold certain parcels of land back to the tenant at cost for $120,000. Scheduled Future Minimum Rents
  Note 4. Intangible Assets
   2009
    
    
    2008(UNAUDITED)Lease intangiblesIn-place lease
    
    $
    3,873,697
    
    
    $
    3,873,697Tenant relationship
    
    
    258,273
    
    
    
    258,273Above-market rent
    
    
    513,275
    
    
    
    513,275Less: accumulated amortization
    
    
    (464,034
    )
    
    
    (236,076
    )$
    4,181,211
    
    
    $
    4,409,169Below-market rent
    
    $
    (791,853
    )
    
    $
    (791,853
    )Less: accumulated amortization
    
    
    53,730
    
    
    
    27,335$
    (738,123
    )
    
    $
    (764,518
    )
  CPA®:17 2009 10-K 86




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##### Table of Contents



BPLAST LANDLORD (DE) LLC
NOTES TO FINANCIAL STATEMENTS
 Note 5. Non-Recourse Debt
   Note 6. Fair Value Measurements
   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)(UNAUDITED)Assets:Derivative assets
    
    $
    49,501
    
    
    $
    
    
    
    $
    49,501
    
    
    $
    $
    49,501
    
    
    $
    
    
    
    $
    49,501
    
    
    $
    
    December 31, 2009
    
    
    December 31, 2008Carrying Value
    
    
    Fair Value
    
    
    Carrying Value
    
    
    Fair Value(UNAUDITED)Debt
    
    $
    29,000,000
    
    
    $
    29,334,750
    
    
    $
    39,071,069
    
    
    $
    36,197,728
  Note 7. Risk Management and Use of Derivative Financial Instruments
 Risk Management
  CPA®:17 2009 10-K 87




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##### Table of Contents



BPLAST LANDLORD (DE) LLC
NOTES TO FINANCIAL STATEMENTS
 Use of Derivative Financial Instruments
  Interest Rate Cap
    Asset DerivativesFair Value atDerivatives Designated as Hedging Instruments
    
    Balance Sheet Location
    
    December 31, 2009(UNAUDITED)Interest rate cap
    
    Other assets
    
    $
    49,501Total derivatives
    
    
    
    $
    49,501
  Amount of Gain (Loss)Recognized in OCIon Derivative(Effective Portion)Year endedDerivatives in Cash Flow Hedging Relationships
    
    December 31, 2009(UNAUDITED)Interest rate cap (a) (b)
    
    $
    25,698Total
    
    $
    25,698
 
 (a)
    
    During the years ended December 31, 2009, 2008 and 2007, no gains or losses were reclassified
from OCI into income related to ineffective portions of hedging relationships or to amounts
excluded from effectiveness testing.(b)
    
    We obtained this interest rate cap in March 2009. CPA®:17 2009 10-K 88




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##### Table of Contents



Item 9.
    
    Changes in and Disagreements with Accountants on Accounting and Financial
Disclosure.
  
 Item 9A(T).
    
    Controls and Procedures.
 Disclosure Controls and Procedures
   Managements Report on Internal Control Over Financial Reporting
      Changes in Internal Control Over Financial Reporting
  
 Item 9B.
    
    Other Information.
  CPA®:17 2009 10-K 89




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##### Table of Contents



Item 10.
    
    Directors, Executive Officers and Corporate Governance.
  
 Item 11.
    
    Executive Compensation.
  
 Item 12.
    
    Security Ownership of Certain Beneficial Owners and Management and Related Stockholder
Matters.
  
 Item 13.
    
    Certain Relationships and Related Transactions, and Director Independence.
  
 Item 14.
    
    Principal Accountant Fees and Services.
  CPA®:17 2009 10-K 90




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##### Table of Contents



Item 15.
    
    Exhibits, Financial Statement Schedules.
  
   Exhibit No.
    
    Description
    
    Method of Filing3.1
    
    
    Articles of Incorporation of Registrant
    
    Incorporated by
reference to
Registration
Statement on Form
S-11 (No.
333-140842) filed
February 22, 20073.2
    
    
    Articles of Amendment and Restatement
of Corporate Property Associates 17 
Global Incorporated
    
    Incorporated by
reference to
Quarterly Report on
Form 10-Q for the
quarter ended
September 30, 2007
filed December 14,
20073.3
    
    
    Bylaws of Corporate Property Associates
17  Global Incorporated
    
    Incorporated by
reference to
Quarterly Report on
Form 10-Q for the
quarter ended
September 30, 2007
filed December 14,
20074.1
    
    
    2007 Distribution Reinvestment and
Stock Purchase Plan
    
    Incorporated by
reference to
Quarterly Report on
Form 10-Q for the
quarter ended
September 30, 2007
filed December 14,
200710.1
    
    
    Selected Dealer Agreement dated as of
December 7, 2007 by and among,
Corporate Property Associates 17 
Global Incorporated, Carey Financial,
LLC, Carey Asset Management Corp., W.
P. Carey & Co. LLC and Ameriprise
Financial Services, Inc.
    
    Incorporated by
reference to Form
8-K filed December
10, 200710.2
    
    
    Agreement of Limited Partnership of
CPA:17 Limited Partnership dated
November 12, 2007 by and among,
Corporate Property Associates 17 
Global Incorporated and W. P. Carey
Holdings, LLC
    
    Incorporated by
reference to
Quarterly Report on
Form 10-Q for the
quarter ended
September 30, 2007
filed December 14,
200710.3
    
    
    First Amendment to Agreement of Limited
Partnership of CPA: 17 Limited
Partnership dated as of November 23,
2009
    
    Incorporated by
reference to
Registration
Statement on Form
S-11 (No.
333-140842) filed
November 24, 200910.4
    
    
    Sales Agency Agreement dated November
30, 2007 between Corporate Property
Associates 17  Global Incorporated and
Carey Financial, LLC
    
    Incorporated by
reference to
Quarterly Report on
Form 10-Q for the
quarter ended
September 30, 2007
filed December 14,
200710.5
    
    
    Subscription Escrow Agreement
    
    Incorporated by
reference to
Registration
Statement on Form
S-11 (No.
333-140842) filed
October 29, 200710.6
    
    
    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
Registration
Statement on Form
S-11 (File No.
333-140842) filed
August 1, 200810.7
    
    
    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, 200910.8
    
    
    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
Registration
Statement on Form
S-11 (File No.
333-140842) filed
August 1, 200810.9
    
    
    Form of Indemnification Agreement with
independent directors
    
    Incorporated by
reference to
Registration
Statement on Form
S-11 (File No.
333-140842) filed
August 1, 200810.10
    
    
    Lease Agreement by and between 620
Eighth NYT (NY) Limited Partnership, as
landlord, and NYT Real Estate Company
LLC, as tenant, dated March 6, 2009
    
    Incorporated by
reference to
Registration
Statement on Form
S-11 (File No.
333-140842) filed
April 2, 2009
 CPA®:17 2009 10-K 91




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##### Table of Contents



Exhibit No.
    
    Description
    
    Method of Filing10.11
    
    
    Guaranty and Suretyship Agreement made
by The New York Times Company (NYTC),
and The New York Times Sales Company
(NYT Sales), (NYTC and NYT Sales,
collectively the Guarantor), to 620
Eighth NYT (NY) Limited Partnership
(Landlord), dated March 6, 2009
    
    Incorporated by
reference to
Registration
Statement on Form
S-11 (File No.
333-140842) filed
April 2, 200910.12
    
    
    Assignment and Assumption of Sublease
by and between NYT Real Estate Company
LLC and 620 Eighth NYT (NY) Limited
Partnership, dated March 6, 2009
    
    Incorporated by
reference to
Registration
Statement on Form
S-11 (File No.
333-140842) filed
April 2, 200910.13
    
    
    Wrap-Around Mortgage, Assignment of
Rents, Security Agreement and Fixture
Filing among NYT Real Estate Company
LLC and New York State Urban
Development Corporation, D/B/A Empire
State Development Corporation and 620
Eighth NYT (NY) Limited Partnership,
dated March 6, 2009
    
    Incorporated by
reference to
Registration
Statement on Form
S-11 (File No.
333-140842) filed
April 2, 200910.14
    
    
    Loan Agreement Dated as of August 31,
2009 by and between 620 Eighth NYT (NY)
Limited Partnership and 620 Eighth
Lender NYT (NY) Limited Partnership as
Borrower and Bank of China, New York
Branch as Lender
    
    Incorporated by
reference to Form
8-K/A filed
November 4, 200921.1
    
    
    Subsidiaries of Registrant
    
    Filed herewith31.1
    
    
    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
    
    
    Certification pursuant to Section 906
of the Sarbanes-Oxley Act of 2002
    
    Filed herewith
 CPA®:17 2009 10-K 92




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##### Table of Contents



SIGNATURES
  Corporate Property Associates 17  Global IncorporatedDate 3/26/2010
    
    By:
    
    /s/ Mark J. DeCesarisMark J. DeCesarisManaging Director and Acting Chief Financial Officer
  Signature
    
    Title
    
    Date/s/ Wm. Polk Carey
    
    Chairman of the Board and Director
    
    3/26/2010Wm. Polk Carey/s/ Gordon F. DuGan
    
    Chief Executive Officer and Director
    
    3/26/2010Gordon F. DuGan
    
    (Principal Executive Officer)/s/ Mark J. DeCesaris
    
    Managing Director and Acting Chief Financial
Officer
    
    3/26/2010Mark J. DeCesaris
    
    (Principal Financial Officer)/s/ Thomas J. Ridings, Jr.
    
    Executive Director and Chief Accounting Officer
    
    3/26/2010Thomas J. Ridings, Jr.
    
    (Principal Accounting Officer)/s/ Marshall E. Blume
    
    Director
    
    3/26/2010Marshall E. Blume/s/ Elizabeth P. Munson
    
    Director
    
    3/26/2010Elizabeth P. Munson/s/ James D. Price
    
    Director
    
    3/26/2010James D. Price
 CPA®:17 2009 10-K 93