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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, 2010
 or
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to .
 Commission file number: 000-52891
 
 CORPORATE PROPERTY ASSOCIATES 17  GLOBAL INCORPORATED
  Maryland
    
    20-8429087(State 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
  Common Stock, Par Value $0.001 Per Share
 o þ
 o þ
 þ o
 o o
 o
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer þ
    
    Smaller reporting company o(Do not check if a smaller reporting company)
 o þ
   DOCUMENTS INCORPORATED BY REFERENCE




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TABLE OF CONTENTS
 PART IItem 1. Business
    
    
    2Item 1A. Risk Factors
    
    
    13Item 1B. Unresolved Staff Comments
    
    
    30Item 2. Properties
    
    
    30Item 3. Legal Proceedings
    
    
    30Item 4. Removed and Reserved
    
    
    30PART IIItem 5. Market for Registrants Common Equity, Related Stockholder Matters and
Issuer Purchases of Equity Securities
    
    
    31Item 6. Selected Financial Data
    
    
    32Item 7. Managements Discussion and Analysis of Financial Condition and Results of
Operations
    
    
    33Item 7A. Quantitative and Qualitative Disclosures about Market Risk
    
    
    52Item 8. Financial Statements and Supplementary Data
    
    
    55Item 9. Changes in and Disagreements with Accountants on Accounting and Financial
Disclosure
    
    
    107Item 9A. Controls and Procedures
    
    
    107Item 9B. Other Information
    
    
    107PART IIIItem 10. Directors, Executive Officers and Corporate Governance
    
    
    108Item 11. Executive Compensation
    
    
    108Item 12. Security Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
    
    
    108Item 13. Certain Relationships and Related Transactions, and Director
Independence
    
    
    108Item 14. Principal Accountant Fees and Services
    
    
    108PART IVItem 15. Exhibits, Financial Statement Schedules
    
    
    108SIGNATURES
    
    
    111Exhibit 21.1Exhibit 31.1Exhibit 31.2Exhibit 32
  Forward-Looking Statements
  CPA®:17 2010 10-K 1




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Item 1. Business.
 (a) General Development of Business
 Overview:
 ®
  ® ® ® ®
     CPA®:17 2010 10-K 2




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Significant Developments during 2010:
 Acquisition Activity
  Financing Activity
 Public Offering
  Proposed Asset Purchase ® ® ® ® ® ® ® ®
 (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.
  CPA®:17 2010 10-K 3




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
    
    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;
    
    commercial mortgage-backed securities (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.
  Our Portfolio
  Geographic Diversification
  Consolidated Investments
    
    
    Equity Investments in Real Estate (b)Annualized
    
    
    % of Annualized
    
    
    Annualized
    
    
    % of AnnualizedContractual
    
    
    Contractual
    
    
    Contractual
    
    
    ContractualMinimum
    
    
    Minimum
    
    
    Minimum
    
    
    MinimumRegion
    
    Base Rent (a)
    
    
    Base Rent
    
    
    Base Rent (a)
    
    
    Base RentUnited StatesEast
    
    $
    34,211
    
    
    
    25
    %
    
    $
    720
    
    
    
    10
    %South
    
    
    22,819
    
    
    
    17
    
    
    
    
    
    
    
    Midwest
    
    
    17,607
    
    
    
    13
    
    
    
    2,710
    
    
    
    36West
    
    
    12,057
    
    
    
    9
    
    
    
    
    
    
    
    Total U.S.
    
    
    86,694
    
    
    
    64
    
    
    
    3,430
    
    
    
    46InternationalEurope (c)
    
    
    47,126
    
    
    
    35
    
    
    
    4,050
    
    
    
    54Canada
    
    
    1,354
    
    
    
    1
    
    
    
    
    
    
    
    Total
    
    $
    135,174
    
    
    
    100
    %
    
    $
    7,480
    
    
    
    100
    %
 
 (a)
    
    Reflects annualized contractual minimum base rent for the fourth quarter of 2010. CPA®:17 2010 10-K 4




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(b)
    
    Reflects our pro rata share of annualized contractual minimum base rent for the fourth
quarter of 2010 from equity investments in real estate.(c)
    
    Reflects investments in Croatia, Germany, Hungary, Poland, Spain and United Kingdom. Property Diversification
  Consolidated Investments
    
    
    Equity Investments in Real Estate (b)Annualized
    
    
    % of Annualized
    
    
    Annualized
    
    
    % of AnnualizedContractual
    
    
    Contractual
    
    
    Contractual
    
    
    ContractualMinimum
    
    
    Minimum
    
    
    Minimum
    
    
    MinimumProperty Type
    
    Base Rent (a)
    
    
    Base Rent
    
    
    Base Rent (a)
    
    
    Base RentOffice
    
    $
    50,960
    
    
    
    38
    %
    
    $
    
    
    
    
    
    %Warehouse/Distribution
    
    
    37,881
    
    
    
    28
    
    
    
    4,050
    
    
    
    54Industrial
    
    
    22,557
    
    
    
    16
    
    
    
    3,430
    
    
    
    46Retail
    
    
    20,259
    
    
    
    15
    
    
    
    
    
    
    
    Education
    
    
    2,495
    
    
    
    2
    
    
    
    
    
    
    
    Other Properties (c)
    
    
    1,022
    
    
    
    1
    
    
    
    
    
    
    
    Total
    
    $
    135,174
    
    
    
    100
    %
    
    $
    7,480
    
    
    
    100
    %
 
 (a)
    
    Reflects annualized contractual minimum base rent for the fourth quarter of 2010.(b)
    
    Reflects our pro rata share of annualized contractual minimum base rent for the fourth
quarter of 2010 from equity investments in real estate.(c)
    
    Other properties include hospitality and residential properties. CPA®:17 2010 10-K 5




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Tenant Diversification
  Consolidated Investments
    
    
    Equity Investments in Real Estate (c)Annualized
    
    
    % of Annualized
    
    
    Annualized
    
    
    % of AnnualizedContractual
    
    
    Contractual
    
    
    Contractual
    
    
    ContractualMinimum
    
    
    Minimum
    
    
    Minimum
    
    
    MinimumTenant Industry (a)
    
    Base Rent (b)
    
    
    Base Rent
    
    
    Base Rent (b)
    
    
    Base RentMedia: Printing and Publishing
    
    $
    33,297
    
    
    
    25
    %
    
    $
    
    
    
    
    
    %Retail Stores
    
    
    29,789
    
    
    
    22
    
    
    
    4,050
    
    
    
    54Beverages, Food, and Tobacco
    
    
    18,142
    
    
    
    13
    
    
    
    
    
    
    
    Electronics
    
    
    7,502
    
    
    
    6
    
    
    
    
    
    
    
    Healthcare, Education and Childcare
    
    
    6,119
    
    
    
    4
    
    
    
    
    
    
    
    Leisure, Amusement, Entertainment
    
    
    5,887
    
    
    
    4
    
    
    
    
    
    
    
    Consumer Services
    
    
    5,197
    
    
    
    4
    
    
    
    
    
    
    
    Textiles, Leather, and Apparel
    
    
    4,718
    
    
    
    3
    
    
    
    
    
    
    
    Business and Commercial Services
    
    
    4,000
    
    
    
    3
    
    
    
    
    
    
    
    Machine (Manufacturing)
    
    
    3,883
    
    
    
    3
    
    
    
    
    
    
    
    Banking
    
    
    3,821
    
    
    
    3
    
    
    
    
    
    
    
    Transportation  Cargo
    
    
    3,202
    
    
    
    2
    
    
    
    
    
    
    
    Automobile
    
    
    2,880
    
    
    
    2
    
    
    
    
    
    
    
    Chemicals, Plastics, Rubber, and Glass
    
    
    2,534
    
    
    
    2
    
    
    
    3,430
    
    
    
    46Transportation  Personal
    
    
    2,105
    
    
    
    2
    
    
    
    
    
    
    
    Other (d)
    
    
    2,098
    
    
    
    2
    
    
    
    
    
    
    
    Total
    
    $
    135,174
    
    
    
    100
    %
    
    $
    7,480
    
    
    
    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 2010.(c)
    
    Reflects our pro rata share of annualized contractual minimum base rent for the fourth
quarter of 2010 from equity investments in real estate.(d)
    
    Other includes revenue from tenants in our consolidated investments in the following
industries: hotels and gaming, consumer non-durable goods, consumer and durable goods, and
mining, metals and primary metal industries. CPA®:17 2010 10-K 6




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Lease Expirations
  Consolidated Investments
    
    
    Equity Investments in Real Estate (b)Annualized
    
    
    % of Annualized
    
    
    Annualized
    
    
    % of AnnualizedContractual
    
    
    Contractual
    
    
    Contractual
    
    
    ContractualMinimum
    
    
    Minimum
    
    
    Minimum
    
    
    MinimumYear of Lease Expiration
    
    Base Rent (a)
    
    
    Base Rent
    
    
    Base Rent (a)
    
    
    Base Rent2011-2023
    
    $
    3,536
    
    
    
    3
    %
    
    $
    
    
    
    
    
    %2024
    
    
    35,414
    
    
    
    26
    
    
    
    3,333
    
    
    
    442025-2027
    
    
    4,710
    
    
    
    3
    
    
    
    
    
    
    
    2028
    
    
    18,126
    
    
    
    13
    
    
    
    
    
    
    
    2029
    
    
    10,308
    
    
    
    8
    
    
    
    
    
    
    
    2030
    
    
    41,418
    
    
    
    31
    
    
    
    717
    
    
    
    102031
    
    
    17,023
    
    
    
    13
    
    
    
    
    
    
    
    2032-2034
    
    
    4,639
    
    
    
    3
    
    
    
    3,430
    
    
    
    46Total
    
    $
    135,174
    
    
    
    100
    %
    
    $
    7,480
    
    
    
    100
    %
 
 (a)
    
    Reflects annualized contractual minimum base rent for the fourth quarter of 2010.(b)
    
    Reflects our pro rata share of annualized contractual minimum base rent for the fourth
quarter of 2010 from equity investments in real estate. Asset Management
   Holding Period
  CPA®:17 2010 10-K 7




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® ® ®
 Financing Strategies
     2011
    
    $
    2012
    
    
    2013
    
    
    2014
    
    
    105,913
    (a)2015
    
    
    43,285
    (a)
 
 (a)
    
    Inclusive of amounts attributable to noncontrolling interests totaling $47.7 million in 2014
and $13.6 million in 2015. CPA®:17 2010 10-K 8




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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
 Collateral Evaluation
 CPA®:17 2010 10-K 9




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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 2010 10-K 10




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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
 ® ® ® ® ® ®
 CPA®:17 2010 10-K 11




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
    
    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.
    
    Axel K.A. Hansing Currently serving as a senior partner at Coller Capital, Ltd., a
global leader in the private equity secondary market, and 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.
    
    Jean Hoysradt Currently serving as the chief investment officer of Mousse Partners
Limited, an investment office based in New York.
    
    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.
    
    Richard C. Marston Currently the James R.F. Guy professor of economics and finance at
the University of Pennsylvania and its Wharton School.
    
    Nick J.M. van Ommen Former chief executive officer of the European Public Real Estate
Association (EPRA), currently serves on the supervisory boards of several companies,
including Babis Vovos International Construction SA, a listed real estate company in Greece,
Intervest Retail and Intervest Offices, listed real estate companies in Belgium, BUWOG /
ESG, a residential leasing and development company in Austria and IMMOFINANZ, a listed real
estate company in Austria.
    
    Dr. Karsten von Köller Currently chairman of Lone Star Germany GMBH, a U.S. private
equity firm (Lone Star), Chairman of the Supervisory Board of Düsseldorfer Hypothekenbank
AG, a subsidiary of Lone Star, and Vice Chairman of the Supervisory Boards of IKB Deutsche
Industriebank AG, Corealcredit Bank AG and MHB Bank AG.
  Segments
  Competition
   CPA®:17 2010 10-K 12




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Environmental Matters
  Transactions with Affiliates
 ® ®
 (d) Financial Information About Geographic Areas
  (e) Available Information
  
 Item 1A. Risk Factors.
  The recent financial and economic crisis adversely affected our business, and the continued
uncertainty in the global economic environment may adversely affect our business in the future.
   CPA®:17 2010 10-K 13




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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.
   Our distributions have exceeded, and may in the future exceed, our earnings in accordance with
accounting principles generally accepted in the United States of America (GAAP) and our adjusted
cash flow from operating activities and may be paid from offering proceeds, borrowing proceeds and
other sources, without limitation, particularly during the period before we have substantially
invested the remaining net proceeds from our offering.
   We were incorporated in February 2007 and have a limited operating history; therefore, there is no
assurance that we will be able to achieve our investment objectives.
  CPA®:17 2010 10-K 14




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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 may recognize substantial impairment charges on our properties.
  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.
  CPA®:17 2010 10-K 15




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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.
 ®
 WPC and our sales agent are parties to a settlement agreement with the SEC and are subject to a
federal court injunction.
 ®
   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 2010 10-K 16




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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;
 CPA®:17 2010 10-K 17




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
    
    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.
  We face competition from affiliates of our advisor in the purchase, sale, lease and operation of
properties.
 ® ® ® ®
 If we internalize our management functions, the percentage of our outstanding common stock owned by
our other stockholders could be reduced, and we could incur other significant costs associated with
being self-managed.
  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.
  CPA®:17 2010 10-K 18




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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.
  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.
 ®
 CPA®:17 2010 10-K 19




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Our operations could be restricted if we become subject to the Investment Company Act and your
investment return, if any, may be reduced if we are required to register as an investment company
under the Investment Company Act.
  
    
    it is or holds itself out as being engaged primarily, or proposes to engage primarily, in
the business of investing, reinvesting or trading in securities; or
    
    it owns or proposes to acquire investment securities having a value exceeding 40% of the
value of its total assets (exclusive of U.S. government securities and cash items) on an
unconsolidated basis, which is referred to as the 40% test.
   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.
  CPA®:17 2010 10-K 20




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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.
   The inability of a tenant in a single tenant property to pay rent will reduce our revenues and
increase our expenses.
  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 2010 10-K 21




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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.
  CPA®:17 2010 10-K 22




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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 and this lack of liquidity may limit
our ability to quickly change our portfolio in response to changes in economic or other conditions.
  Potential liability for environmental matters could adversely affect our financial condition.
  
    
    Responsibility and liability for the costs of investigation, removal or remediation of
hazardous or toxic substances released on or from our real 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.
  CPA®:17 2010 10-K 23




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Liability for uninsured losses could adversely affect our financial condition.
  We face competition for the investments we make.
  Valuations 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.
  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.
  CPA®:17 2010 10-K 24




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The B Notes, C 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.
  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.
  CPA®:17 2010 10-K 25




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##### Table of Contents



Investments in B Notes and C Notes 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.
  Investments in mezzanine loans involve greater risks of loss than senior loans secured by income
producing properties.
  CPA®:17 2010 10-K 26




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##### Table of Contents



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 2010 10-K 27




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##### Table of Contents



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.
  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 undistributed net income.
  CPA®:17 2010 10-K 28




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##### Table of Contents



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.
     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.
 CPA®:17 2010 10-K 29




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##### Table of Contents



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.
   
 Item 3. Legal Proceedings.
  
 Item 4. Removed and Reserved.
 CPA®:17 2010 10-K 30




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##### Table of Contents



Item 5.
    
    Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of
Equity Securities.
  Distributions
  2010
    
    
    2009First quarter
    
    $
    0.1600
    
    
    $
    0.1562Second quarter
    
    
    0.1600
    
    
    
    0.1575Third quarter
    
    
    0.1600
    
    
    
    0.1587Fourth quarter
    
    
    0.1600
    
    
    
    0.1600$
    0.6400
    
    
    $
    0.6324
 Unregistered
Sales of Equity Securities
 (a)
    
    For the three months ended December 31, 2010, we issued 141,715 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, 2010 (in thousands except share amounts):
 Shares registered
    
    
    200,000,000Aggregate price of offering amount registered
    
    $
    2,000,000Shares sold (a)
    
    
    137,550,626Aggregated offering price of amount sold
    
    $
    1,373,412Direct 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
    
    
    (137,439
    )Direct or indirect payments to others
    
    
    (12,242
    )Net offering proceeds to the issuer after deducting expenses
    
    
    1,223,731Purchases of real estate, equity investments in real estate and real estate related assets,
net of mortgage financing
    
    
    (949,470
    )Temporary investments in cash and cash equivalents
    
    $
    274,261
 
 (a)
    
    Excludes shares issued to affiliates, including our advisor, and shares issued pursuant to
our distribution reinvestment and stock purchase plan. CPA ® :17 2010 10-K 31




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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 the2010 Period
    
    shares purchased(a)
    
    
    paid per share
    
    
    plans or programs(a)
    
    
    plans or programs(a)October
    
    
    
    
    
    
    
    
    
    
    N/A
    
    
    
    N/ANovember
    
    
    
    
    
    
    
    
    
    
    N/A
    
    
    
    N/ADecember
    
    
    174,023
    
    
    $
    9.30
    
    
    
    N/A
    
    
    
    N/ATotal
    
    
    174,023
 (a)
    
    Represents shares of our common stock purchased through 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 exceptions, 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 ended2010
    
    
    2009
    
    
    2008
    
    
    12/31/2007(a)Operating DataTotal revenues
    
    $
    99,522
    
    
    $
    50,346
    
    
    $
    9,684
    
    
    $
    Net income (loss)
    
    
    45,787
    
    
    
    2,180
    
    
    
    (1,650
    )
    
    
    (106
    )Add: Net (income) loss attributable to noncontrolling interests
    
    
    (15,333
    )
    
    
    (9,881
    )
    
    
    403
    
    
    
    Net income (loss) attributable to CPA®17  Global shareholders (b)
    
    
    30,454
    
    
    
    (7,701
    )
    
    
    (1,247
    )
    
    
    (106
    )Income (loss) per share:Net income (loss) attributable to CPA®:17  Global shareholders
    
    
    0.27
    
    
    
    (0.14
    )
    
    
    (0.07
    )
    
    
    (4.76
    )Cash distributions declared per share
    
    
    0.6400
    
    
    
    0.6324
    
    
    
    0.5578
    
    
    
    0.0792Balance Sheet DataTotal assets
    
    $
    1,988,255
    
    
    $
    1,067,872
    
    
    $
    479,072
    
    
    $
    2,944Net investments in real estate(c)
    
    
    1,426,907
    
    
    
    698,332
    
    
    
    273,314
    
    
    
    8Long-term obligations (d)
    
    
    687,297
    
    
    
    308,830
    
    
    
    137,181
    
    
    
    Other InformationCash provided by operating activities
    
    $
    67,975
    
    
    $
    32,240
    
    
    $
    4,443
    
    
    $
    (17
    )Cash distributions paid
    
    
    60,937
    
    
    
    27,193
    
    
    
    5,196
    
    
    
    Payment of mortgage principal (e)
    
    
    6,541
    
    
    
    4,494
    
    
    
    540
    
    
    
    
 
 (a)
    
    For the period from inception (February 20, 2007) to December 31, 2007.(b)
    
    Net loss in 2009 reflects impairment charges totaling $26.8 million, inclusive of amounts
attributable to noncontrolling interests totaling $2.8 million.(c)
    
    Net investments in real estate consists of net investments in properties, net investments in
direct financing leases, real estate under construction and equity investments in real estate,
as applicable.(d)
    
    Represents mortgage obligations and deferred acquisition fee installments.(e)
    
    Represents scheduled mortgage principal payments. CPA ® :17 2010 10-K 32




---



##### Table of Contents



Item 7.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations.
  Business Overview
  Financial Highlights
 Years ended December 31,2010
    
    
    2009
    
    
    2008Total revenues
    
    $
    99,522
    
    
    $
    50,346
    
    
    $
    9,684Net income (loss) attributable to CPA®:17  Global shareholders
    
    
    30,454
    
    
    
    (7,701
    )
    
    
    (1,247
    )Cash flow provided by operating activities
    
    
    67,975
    
    
    
    32,240
    
    
    
    4,443Distributions paid
    
    
    60,937
    
    
    
    27,193
    
    
    
    5,196Supplemental financial measures:Funds from operations  as adjusted (AFFO)
    
    
    42,231
    
    
    
    17,181
    
    
    
    4,252Adjusted cash flow from operating activities
    
    
    48,099
    
    
    
    20,286
    
    
    
    3,340
   ® ®
  CPA ® :17 2010 10-K 33




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##### Table of Contents



Current Trends
  Fundraising
    Capital Markets
  Investment Opportunities
    CPA ® :17 2010 10-K 34




---



##### Table of Contents



Financing Conditions
  General Economic Environment
 Foreign Exchange Rates
  Real Estate Sector
  Tenant Defaults
    CPA ® :17 2010 10-K 35




---



##### Table of Contents



Inflation
  Lease Expirations and Occupancy
  Proposed Accounting Changes
  How We Evaluate Results of Operations
     CPA ® :17 2010 10-K 36




---



##### Table of Contents



Results of Operations
     Years ended December 31,2010
    
    
    2009
    
    
    2008Rental income
    
    $
    52,292
    
    
    $
    18,333
    
    
    $
    6,630Interest income from direct financing leases
    
    
    40,028
    
    
    
    29,117
    
    
    
    1,392$
    92,320
    
    
    $
    47,450
    
    
    $
    8,022
 CPA ® :17 2010 10-K 37




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##### Table of Contents



Years ended December 31,Lessee (Date Acquired or Placed in Service)
    
    2010
    
    
    2009
    
    
    2008The New York Times Company (3/2009) (a)
    
    $
    26,768
    
    
    $
    21,751
    
    
    $
    Eroski Sociedad Cooperativa (6/2010, 2/2010, 12/2009) (b) (c)
    
    
    8,281
    
    
    
    101
    
    
    
    LifeTime Fitness, Inc. (9/2008)
    
    
    6,847
    
    
    
    6,847
    
    
    
    1,712Agrokor d.d. (4/2010, 12/2010)(b)
    
    
    6,783
    
    
    
    
    
    
    
    Frontier Spinning Mills, Inc. (12/2008) (a)
    
    
    4,464
    
    
    
    4,469
    
    
    
    12US Oncology, Inc. (12/2009)
    
    
    4,189
    
    
    
    251
    
    
    
    Actebis Peacock GmbH (7/2008) (a) (b)
    
    
    3,967
    
    
    
    4,143
    
    
    
    2,065Angelica Corporation (3/2010)
    
    
    3,855
    
    
    
    
    
    
    
    Kronos Products, Inc. (3/2010)
    
    
    3,784
    
    
    
    
    
    
    
    Laureate Education, Inc. (7/2008)
    
    
    2,895
    
    
    
    2,893
    
    
    
    1,325Mori Seiki USA, Inc. (12/2009)
    
    
    2,811
    
    
    
    189
    
    
    
    Sabre Communications Corporation and Cellxion, LLC (6/2010, 8/2008)
    
    
    2,695
    
    
    
    2,578
    
    
    
    1,083JP Morgan Chase Bank, National Association and AT&T Wireless Services
(5/2010)
    
    
    2,440
    
    
    
    
    
    
    
    TDG Limited (4/2010, 5/2010) (b)
    
    
    2,040
    
    
    
    
    
    
    
    Wagon Automotive Nagold GmbH (8/2008) (a)(b)(d)
    
    
    2,033
    
    
    
    2,316
    
    
    
    865National Express Limited (12/2009) (b)
    
    
    1,919
    
    
    
    52
    
    
    
    Berry Plastics Corporation (3/2010) (c)
    
    
    1,548
    
    
    
    
    
    
    
    Waldaschaff Automotive GmbH (formerly Wagon Automotive GmbH)
(8/2008) (a)(b)(e)
    
    
    670
    
    
    
    1,346
    
    
    
    830Other (b)
    
    
    4,331
    
    
    
    514
    
    
    
    130$
    92,320
    
    
    $
    47,450
    
    
    $
    8,022
 
 (a)
    
    These revenues are generated in consolidated ventures, generally with our affiliates, and on
a combined basis, include lease revenues applicable to noncontrolling interests totaling $15.9
million, $14.0 million and $1.2 million for the years ended December 31, 2010, 2009 and 2008,
respectively.(b)
    
    Amounts are subject to fluctuations in foreign currency exchange rates. The average rate for
the U.S. dollar in relation to the Euro during both 2010 and 2009 strengthened by
approximately 5% in comparison to the respective prior year periods, resulting in a negative
impact on lease revenues for our Euro-denominated investments in 2010 and 2009.(c)
    
    We also own an interest in a venture with one of our affiliates that leases another property
to this lessee, which we account for as an equity investment in real estate.(d)
    
    The decrease was primarily due to the sale of a parcel of land in April 2010 which resulted
in a subsequent reduction of rent.(e)
    
    The decrease was due to a restructuring of the Waldaschaff Automotive GmbH lease. In
connection with entering into Administration, Wagon Automotive GmbH, the former tenant,
terminated its lease with us in May 2009 and a successor company, Waldaschaff Automotive GmbH,
took over the business and began paying rent to us at a significantly reduced rate.
Subsequently, in April 2010, Waldaschaff Automotive GmbH executed a temporary lease under
which monthly rent is unchanged. CPA ® :17 2010 10-K 38




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##### Table of Contents



Ownership Interest at
    
    
    Years ended December 31,Lessee (Date Acquired)
    
    December 31, 2010
    
    
    2010
    
    
    2009
    
    
    2008Tesco plc (7/2009) (a)
    
    
    49
    %
    
    $
    7,337
    
    
    $
    3,420
    
    
    $
    Berry Plastics Corporation (12/2007) (b)
    
    
    50
    %
    
    
    6,666
    
    
    
    6,641
    
    
    
    6,651Eroski Sociedad Cooperativa  Mallorca (6/2010)
(a) (b)
    
    
    30
    %
    
    
    1,710
    
    
    
    
    
    
    
    $
    15,713
    
    
    $
    10,061
    
    
    $
    6,651
 
 (a)
    
    Amounts are subject to fluctuations in foreign currency exchange rates. The average rate for
the U.S. dollar in relation to the Euro during both 2010 and 2009 strengthened by
approximately 5% in comparison to the respective prior year periods, resulting in a negative
impact on lease revenues for our Euro-denominated investments in 2010 and 2009.(b)
    
    We also consolidate a venture with one of our affiliates that leases another property to this
lessee. Lease Revenues
  2010 vs. 2009
 2009 vs. 2008
 Other Real Estate Operations
  Interest Income from CMBS and Notes Receivable
  2010 vs. 2009
 2009 vs. 2008
 CPA ® :17 2010 10-K 39




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##### Table of Contents



Depreciation and Amortization
 2010 vs. 2009
 2009 vs. 2008
 General and Administrative
 2010 vs. 2009
 2009 vs. 2008
 Property Expenses
 2010 vs. 2009
 2009 vs. 2008
 Impairment Charges on Net Investments in Properties
 2009
  Impairment Charges on CMBS
 2009
 Income (Loss) from Equity Investments in Real Estate
  CPA ® :17 2010 10-K 40




---



##### Table of Contents



2010 vs. 2009
 2009 vs. 200
  Other Income and (Expenses)
  2010
 2009
 2008
 Interest Expense
 2010 vs. 2009
 2009 vs. 2008
 Net Income (Loss) Attributable to CPA ® :17  Global Shareholders
 2010 vs. 2009 ®
 CPA ® :17 2010 10-K 41




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##### Table of Contents



2009 vs. 2008 ®
 Funds from Operations  as Adjusted (AFFO)
 2010 vs. 2009 ®
 2009 vs. 2008
 Financial Condition
 Sources and Uses of Cash During the Year
  Operating Activities
  Investing Activities
  CPA ® :17 2010 10-K 42




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##### Table of Contents



Financing Activities
     Adjusted Cash Flow from Operating Activities
   CPA ® :17 2010 10-K 43




---



##### Table of Contents



Summary of Financing
  December 31,2010
    
    
    2009BalanceFixed rate
    
    $
    516,103
    
    
    $
    154,754Variable rate (a)
    
    
    151,375
    
    
    
    146,154Total
    
    $
    667,478
    
    
    $
    300,908Percent of total debtFixed rate
    
    
    77
    %
    
    
    51
    %Variable rate (a)
    
    
    23
    %
    
    
    49
    %100
    %
    
    
    100
    %Weighted average interest rate at end of periodFixed rate
    
    
    6.2
    %
    
    
    7.1
    %Variable rate (a)
    
    
    5.4
    %
    
    
    5.3
    %
 
 (a)
    
    Variable-rate debt at December 31, 2010 consisted of (i) $116.7 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, 2010 and (ii) $34.7 million that has been effectively converted to fixed-rate
debt through interest rate swap derivative instruments. Cash Resources
  Cash Requirements
  Expected Impact of Asset Purchase
 ® ®
 ® ® ®
 CPA ® :17 2010 10-K 44




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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 (a)
    
    $
    668,483
    
    
    $
    11,530
    
    
    $
    26,785
    
    
    $
    176,508
    
    
    $
    453,660Deferred acquisition fees
    
    
    19,819
    
    
    
    9,128
    
    
    
    10,691
    
    
    
    
    
    
    
    Interest on borrowings and deferred acquisition fees
    
    
    283,322
    
    
    
    40,049
    
    
    
    78,183
    
    
    
    67,546
    
    
    
    97,544Build-to-suit and other capital commitments (b)
    
    
    32,967
    
    
    
    32,967
    
    
    
    
    
    
    
    
    
    
    
    Lending commitment (c)
    
    
    22,570
    
    
    
    1,900
    
    
    
    20,670
    
    
    
    
    
    
    
    Operating and other lease commitments (d)
    
    
    1,641
    
    
    
    259
    
    
    
    526
    
    
    
    519
    
    
    
    337$
    1,028,802
    
    
    $
    95,833
    
    
    $
    136,855
    
    
    $
    244,573
    
    
    $
    551,541
 
 (a)
    
    Excludes debt discounts of $1.0 million.(b)
    
    Represents remaining build-to-suit commitments on two projects. As of December 31, 2010,
total estimated construction costs for these projects were projected to be $106.6 million in
the aggregate, of which $74.3 million had been funded at that date. Also includes a hotel
capital improvement commitment of $0.7 million.(c)
    
    Represents unfunded amount on commitments to provide loans to two developers of four domestic
build-to-suit properties. As of December 31, 2010, the total commitment for the loans was for
up to $54.5 million, of which $31.9 million had been funded at that date.(d)
    
    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 as well as future minimum
rents payable under a lease executed in June 2010 (denominated in British Pound Sterling) in
conjunction with an investment in the United Kingdom. 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.  Asset Purchase
 ® ®
 CPA ® :17 2010 10-K 45




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##### Table of Contents



Equity Investments in Real Estate
  OwnershipInterest at
    
    
    
    
    
    
    Total Third
    
    
    DebtLessee
    
    December 31, 2010
    
    
    Total Assets
    
    
    Party Debt
    
    
    Maturity DateBerry Plastics Corporation
    
    
    50
    %
    
    
    79,412
    
    
    
    28,701
    
    
    
    3/2012Tesco plc (a)
    
    
    49
    %
    
    $
    89,405
    
    
    $
    45,339
    
    
    
    6/2016Eroski Sociedad Cooperativa  Mallorca(a)
    
    
    30
    %
    
    
    35,172
    
    
    
    
    
    
    
    N/A$
    203,989
    
    
    $
    74,040
 
 (a)
    
    Dollar amounts shown are based on the exchange rate of the Euro at December 31, 2010. Environmental Obligations
  Critical Accounting Estimates
  Classification of Real Estate Assets
  CPA ® :17 2010 10-K 46




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##### Table of Contents



Identification of Tangible and Intangible Assets in Connection with Real Estate Acquisitions
     Basis of Consolidation
   CPA ® :17 2010 10-K 47




---



##### Table of Contents



Impairments
  Real Estate
  Direct Financing Leases
  Equity Investments in Real Estate
  CPA ® :17 2010 10-K 48




---



##### Table of Contents



Commercial Mortgage-Backed Securities
     Provision for Uncollected Amounts from Lessees
  Income Taxes
    CPA ® :17 2010 10-K 49




---



##### Table of Contents



Subsequent Events
   Supplemental Financial Measures
  Funds from Operations  as Adjusted
   CPA®:17 2010 10-K 50




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##### Table of Contents



Years ended December 31,2010
    
    
    2009
    
    
    2008Net income (loss) attributable to CPA®:17 - Global shareholders
    
    $
    30,454
    
    
    $
    (7,701
    )
    
    $
    (1,247
    )Adjustments:Depreciation and amortization of real property
    
    
    13,898
    
    
    
    5,289
    
    
    
    1,825Loss on sale of real estate, net
    
    
    (110
    )
    
    
    
    
    
    
    Proportionate share of adjustments to equity in net income of
partially
owned entities to arrive at FFO:Depreciation and amortization of real property
    
    
    3,136
    
    
    
    2,182
    
    
    
    1,183Loss on sale of real estate, net
    
    
    38
    
    
    
    
    
    
    
    Proportionate share of adjustments for noncontrolling interests to
arrive at FFO
    
    
    (580
    )
    
    
    (653
    )
    
    
    (227
    )Total adjustments
    
    
    16,382
    
    
    
    6,818
    
    
    
    2,781FFO  as defined by NAREIT
    
    
    46,836
    
    
    
    (883
    )
    
    
    1,534Adjustments:Other depreciation, amortization and non-cash charges
    
    
    79
    
    
    
    83
    
    
    
    1,404Straight-line and other rent adjustments
    
    
    (5,252
    )
    
    
    (3,562
    )
    
    
    (315
    )Impairment charges
    
    
    
    
    
    
    23,904
    
    
    
    Proportionate share of adjustments to equity in net income of
partially
owned entities to arrive at AFFO:Other depreciation, amortization and other non-cash charges
    
    
    (6
    )
    
    
    
    
    
    
    Straight-line and other rent adjustments
    
    
    (364
    )
    
    
    (106
    )
    
    
    Impairment charges
    
    
    
    
    
    
    
    
    
    
    2,120Gain on extinguishment of debt
    
    
    
    
    
    
    (326
    )
    
    
    Proportionate share of adjustments for noncontrolling interests to
arrive at AFFO
    
    
    938
    
    
    
    (1,929
    )
    
    
    (491
    )Total adjustments
    
    
    (4,605
    )
    
    
    18,064
    
    
    
    2,718AFFO
    
    $
    42,231
    
    
    $
    17,181
    
    
    $
    4,252
 Adjusted Cash Flow from Operating Activities
   CPA®:17 2010 10-K 51




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##### Table of Contents



Years ended December 31,2010
    
    
    2009
    
    
    2008Cash flow provided by operating activities
    
    $
    67,975
    
    
    $
    32,240
    
    
    $
    4,443Adjustments:Distributions received from equity investments in
real estate in excess of
equity income, net
    
    
    1,600
    
    
    
    2,265
    
    
    
    5Distributions paid to noncontrolling interests, net
    
    
    (12,547
    )
    
    
    (11,474
    )
    
    
    (52
    )Changes in working capital
    
    
    (8,929
    )
    
    
    (2,745
    )
    
    
    (1,056
    )Adjusted cash flow from operating activities
    
    $
    48,099
    
    
    $
    20,286
    
    
    $
    3,340Distributions declared (weighted average share basis)
    
    $
    70,965
    
    
    $
    34,388
    
    
    $
    9,635
  
 Item 7A. Quantitative and Qualitative Disclosures About Market Risk.
 Market Risks
   Interest Rate Risk
   CPA®:17 2010 10-K 52




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##### Table of Contents



2011
    
    
    2012
    
    
    2013
    
    
    2014
    
    
    2015
    
    
    Thereafter
    
    
    Total
    
    
    Fair valueFixed rate debt
    
    $
    8,341
    
    
    $
    9,205
    
    
    $
    10,791
    
    
    $
    11,816
    
    
    $
    55,105
    
    
    $
    420,845
    
    
    $
    516,103
    
    
    $
    522,851Variable rate debt
    
    $
    3,189
    
    
    $
    3,324
    
    
    $
    3,465
    
    
    $
    109,011
    
    
    $
    576
    
    
    $
    31,810
    
    
    $
    151,375
    
    
    $
    151,374
  Foreign Currency Exchange Rate Risk
   CPA®:17 2010 10-K 53




---



##### Table of Contents



Lease Revenues(a)
    
    2011
    
    
    2012
    
    
    2013
    
    
    2014
    
    
    2015
    
    
    Thereafter
    
    
    TotalEuro
    
    $
    35,814
    
    
    $
    35,926
    
    
    $
    35,926
    
    
    $
    35,926
    
    
    $
    35,926
    
    
    $
    478,686
    
    
    $
    658,204British pound sterling
    
    
    5,385
    
    
    
    5,386
    
    
    
    5,386
    
    
    
    5,386
    
    
    
    5,385
    
    
    
    80,900
    
    
    
    107,828Canadian dollar
    
    
    1,384
    
    
    
    1,384
    
    
    
    1,384
    
    
    
    1,384
    
    
    
    1,384
    
    
    
    23,849
    
    
    
    30,769$
    42,583
    
    
    $
    42,696
    
    
    $
    42,696
    
    
    $
    42,696
    
    
    $
    42,695
    
    
    $
    583,435
    
    
    $
    796,801
  Debt service(a) (b)
    
    2011
    
    
    2012
    
    
    2013
    
    
    2014
    
    
    2015
    
    
    Thereafter
    
    
    TotalEuro
    
    $
    16,878
    
    
    $
    17,082
    
    
    $
    17,216
    
    
    $
    17,233
    
    
    $
    60,578
    
    
    $
    142,011
    
    
    $
    270,998
 
 (a)
    
    Based on the applicable exchange rate at December 31, 2010. Contractual rents and debt
obligations are denominated in the functional currency of the country of each property.(b)
    
    Our British and Canadian investments had no debt at December 31, 2010. Interest on unhedged
variable debt obligations was calculated using the applicable annual interest rates and
balances outstanding at December 31, 2010.  CPA®:17 2010 10-K 54




---



##### Table of Contents



Item 8. Financial Statements and Supplementary Data.
  Report of Independent Registered Public Accounting Firm
    
    
    56Consolidated Balance Sheets
    
    
    57Consolidated Statements of Operations
    
    
    58Consolidated Statements of Comprehensive Income (Loss)
    
    
    59Consolidated Statements of Equity
    
    
    60Consolidated Statements of Cash Flows
    
    
    61Notes to Consolidated Financial Statements
    
    
    63Schedule III  Real Estate and Accumulated Depreciation
    
    
    90Notes To Schedule III
    
    
    92Schedule IV  Mortgage Loans On Real Estate
    
    
    93Notes To Schedule IV
    
    
    93
  CPA®:17 2010 10-K 55




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##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
   
 CPA®:17 2010 10-K 56




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##### Table of Contents



CORPORATE PROPERTY ASSOCIATES 17  GLOBAL INCORPORATED
 
 CONSOLIDATED BALANCE SHEETS
 (in thousands, except share and per share amounts)
 December 31,2010
    
    
    2009AssetsInvestments in real estate:Real estate, at cost
    
    $
    930,404
    
    
    $
    326,507Operating real estate, at cost
    
    
    12,177
    
    
    
    Accumulated depreciation
    
    
    (16,574
    )
    
    
    (5,957
    )Net investments in properties
    
    
    926,007
    
    
    
    320,550Net investment in direct financing leases
    
    
    397,006
    
    
    
    303,250Real estate under construction
    
    
    53,041
    
    
    
    31,037Equity investment in real estate
    
    
    50,853
    
    
    
    43,495Net investments in real estate
    
    
    1,426,907
    
    
    
    698,332Cash and cash equivalents
    
    
    162,745
    
    
    
    281,554Intangible assets, net
    
    
    252,078
    
    
    
    46,666Notes receivable
    
    
    89,560
    
    
    
    Other assets, net
    
    
    56,965
    
    
    
    41,320Total assets
    
    $
    1,988,255
    
    
    $
    1,067,872Liabilities and EquityLiabilities:Non-recourse and limited recourse debt
    
    $
    667,478
    
    
    $
    300,908Accounts payable, accrued expenses and other liabilities
    
    
    14,719
    
    
    
    4,533Prepaid and deferred rental income
    
    
    27,020
    
    
    
    13,236Due to affiliates
    
    
    21,009
    
    
    
    8,383Distributions payable
    
    
    21,520
    
    
    
    11,675Total liabilities
    
    
    751,746
    
    
    
    338,735Commitments and contingencies (Note 13)Equity:CPA®:17  Global shareholders equity:Preferred stock, $0.001 par value; 50,000,000 shares authorized; none issued
    
    
    
    
    
    
    Common stock, $0.001 par value; 400,000,000 shares authorized; 143,231,953 and 80,135,401
shares issued, respectively
    
    
    143
    
    
    
    82Additional paid-in capital
    
    
    1,280,453
    
    
    
    718,057Distributions in excess of accumulated earnings
    
    
    (93,446
    )
    
    
    (53,118
    )Accumulated other comprehensive loss
    
    
    (14,943
    )
    
    
    (4,902
    )1,172,207
    
    
    
    660,119Less, treasury stock at cost, 864,991 and 248,833 shares, respectively
    
    
    (8,044
    )
    
    
    (2,314
    )Total CPA®:17  Global shareholders equity
    
    
    1,164,163
    
    
    
    657,805Noncontrolling interests
    
    
    72,346
    
    
    
    71,332Total equity
    
    
    1,236,509
    
    
    
    729,137Total liabilities and equity
    
    $
    1,988,255
    
    
    $
    1,067,872
  CPA®:17 2010 10-K 57




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##### Table of Contents



CORPORATE PROPERTY ASSOCIATES 17  GLOBAL INCORPORATED
 
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (in thousands, except share and per share amounts)
 For the years ended December 31,2010
    
    
    2009
    
    
    2008RevenuesRental income
    
    $
    52,292
    
    
    $
    18,333
    
    
    $
    6,630Interest income from direct financing leases
    
    
    40,028
    
    
    
    29,117
    
    
    
    1,392Other real estate income
    
    
    2,217
    
    
    
    
    
    
    
    Interest income on CMBS and notes receivable
    
    
    3,545
    
    
    
    2,743
    
    
    
    1,658Other operating income
    
    
    1,440
    
    
    
    153
    
    
    
    499,522
    
    
    
    50,346
    
    
    
    9,684ExpensesDepreciation and amortization
    
    
    (14,554
    )
    
    
    (5,324
    )
    
    
    (1,827
    )General and administrative
    
    
    (5,258
    )
    
    
    (3,486
    )
    
    
    (2,041
    )Property expenses
    
    
    (6,991
    )
    
    
    (3,314
    )
    
    
    (807
    )Other real estate expenses
    
    
    (1,327
    )
    
    
    
    
    
    
    Impairment charges on net investments in properties
    
    
    
    
    
    
    (8,271
    )
    
    
    Impairment charges on CMBS, net of noncredit portion
    
    
    
    
    
    
    (15,633
    )
    
    
    (28,130
    )
    
    
    (36,028
    )
    
    
    (4,675
    )Other Income and ExpensesIncome (loss) from equity investment in real estate
    
    
    1,675
    
    
    
    1,406
    
    
    
    (1,793
    )Other income and (expenses)
    
    
    692
    
    
    
    (2,533
    )
    
    
    (1,766
    )Other interest income
    
    
    102
    
    
    
    232
    
    
    
    1,129Interest expense
    
    
    (27,860
    )
    
    
    (10,823
    )
    
    
    (3,725
    )(25,391
    )
    
    
    (11,718
    )
    
    
    (6,155
    )Income (loss) before income taxes
    
    
    46,001
    
    
    
    2,600
    
    
    
    (1,146
    )Provision for income taxes
    
    
    (214
    )
    
    
    (420
    )
    
    
    (504
    )Net Income (Loss)
    
    
    45,787
    
    
    
    2,180
    
    
    
    (1,650
    )Add: Net (income) loss attributable to noncontrolling interests
    
    
    (15,333
    )
    
    
    (9,881
    )
    
    
    403Net Income (Loss) Attributable to CPA®:17  Global Shareholders
    
    $
    30,454
    
    
    $
    (7,701
    )
    
    $
    (1,247
    )Income (Loss) Per ShareNet income (loss) attributable to CPA®:17  Global shareholders
    
    $
    0.27
    
    
    $
    (0.14
    )
    
    $
    (0.07
    )Weighted Average Shares Outstanding
    
    
    110,882,448
    
    
    
    54,376,664
    
    
    
    17,273,533
  CPA®:17 2010 10-K 58




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##### Table of Contents



CORPORATE PROPERTY ASSOCIATES 17  GLOBAL INCORPORATED
 
 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
 (in thousands)
 For the years ended December 31,2010
    
    
    2009
    
    
    2008Net Income (Loss)
    
    $
    45,787
    
    
    $
    2,180
    
    
    $
    (1,650
    )Other Comprehensive Loss:Foreign currency translation adjustment
    
    
    (7,438
    )
    
    
    (682
    )
    
    
    (3,315
    )Change in unrealized loss on derivative instrument
    
    
    (4,375
    )
    
    
    (468
    )
    
    
    Impairment loss on commercial mortgage-backed securities
    
    
    
    
    
    
    (1,505
    )
    
    
    (11,813
    )
    
    
    (2,655
    )
    
    
    (3,315
    )Comprehensive income (loss)
    
    
    33,974
    
    
    
    (475
    )
    
    
    (4,965
    )Amounts Attributable to Noncontrolling Interests:Net (income) loss
    
    
    (15,333
    )
    
    
    (9,881
    )
    
    
    403Foreign currency translation adjustment
    
    
    778
    
    
    
    (166
    )
    
    
    1,027Change in unrealized loss on derivative instrument
    
    
    994
    
    
    
    207
    
    
    
    Comprehensive (income) loss attributable to
noncontrolling interests
    
    
    (13,561
    )
    
    
    (9,840
    )
    
    
    1,430Comprehensive Income (Loss) Attributable to
CPA®:17  Global
Shareholders
    
    $
    20,413
    
    
    $
    (10,315
    )
    
    $
    (3,535
    )
  CPA®:17 2010 10-K 59




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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 January 1, 2008
    
    
    22,222
    
    
    $
    
    
    
    $
    200
    
    
    $
    (106
    )
    
    $
    
    
    
    $
    
    
    
    $
    94
    
    
    $
    
    
    
    $
    94Shares issued, net of offering costs
    
    
    34,544,270
    
    
    
    35
    
    
    
    309,942
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    309,977
    
    
    
    
    
    
    
    309,977Shares issued to affiliates
    
    
    59,005
    
    
    
    
    
    
    
    590
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    590
    
    
    
    
    
    
    
    590Contributions 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
    
    
    
    404,651
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    404,696
    
    
    
    
    
    
    
    404,696Shares issued to affiliates
    
    
    265,101
    
    
    
    2
    
    
    
    2,674
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,676
    
    
    
    
    
    
    
    2,676Contributions from noncontrolling
interests
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    103,364
    
    
    
    103,364Distributions declared ($0.6324 per
share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (34,361
    )
    
    
    
    
    
    
    
    
    
    
    (34,361
    )
    
    
    
    
    
    
    (34,361
    )Distributions to noncontrolling interests
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (71,946
    )
    
    
    (71,946
    )Net (loss) income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (7,701
    )
    
    
    
    
    
    
    
    
    
    
    (7,701
    )
    
    
    9,881
    
    
    
    2,180Other comprehensive loss:Foreign currency translation
adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (848
    )
    
    
    
    
    
    
    (848
    )
    
    
    166
    
    
    
    (682
    )Change in unrealized loss on
derivative
instrument
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (261
    )
    
    
    
    
    
    
    (261
    )
    
    
    (207
    )
    
    
    (468
    )Impairment loss on commercial
mortgage-
backed securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,505
    )
    
    
    
    
    
    
    (1,505
    )
    
    
    
    
    
    
    (1,505
    )Repurchase of shares
    
    
    (248,833
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,314
    )
    
    
    (2,314
    )
    
    
    
    
    
    
    (2,314
    )Balance at December 31, 2009
    
    
    79,886,568
    
    
    
    82
    
    
    
    718,057
    
    
    
    (53,118
    )
    
    
    (4,902
    )
    
    
    (2,314
    )
    
    
    657,805
    
    
    
    71,332
    
    
    
    729,137Shares issued, net of offering costs
    
    
    62,643,431
    
    
    
    60
    
    
    
    557,835
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    557,895
    
    
    
    
    
    
    
    557,895Shares issued to affiliates
    
    
    453,121
    
    
    
    1
    
    
    
    4,561
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,562
    
    
    
    
    
    
    
    4,562Contributions from noncontrolling
interests
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    412
    
    
    
    412Distributions declared ($0.6400 per
share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (70,782
    )
    
    
    
    
    
    
    
    
    
    
    (70,782
    )
    
    
    
    
    
    
    (70,782
    )Distributions to noncontrolling interests
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (12,959
    )
    
    
    (12,959
    )Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    30,454
    
    
    
    
    
    
    
    
    
    
    
    30,454
    
    
    
    15,333
    
    
    
    45,787Other comprehensive loss:Foreign currency translation
adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (6,660
    )
    
    
    
    
    
    
    (6,660
    )
    
    
    (778
    )
    
    
    (7,438
    )Change in unrealized loss on
derivative
instrument
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3,381
    )
    
    
    
    
    
    
    (3,381
    )
    
    
    (994
    )
    
    
    (4,375
    )Repurchase of shares
    
    
    (616,158
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5,730
    )
    
    
    (5,730
    )
    
    
    
    
    
    
    (5,730
    )Balance at December 31, 2010
    
    
    142,366,962
    
    
    $
    143
    
    
    $
    1,280,453
    
    
    $
    (93,446
    )
    
    $
    (14,943
    )
    
    $
    (8,044
    )
    
    $
    1,164,163
    
    
    $
    72,346
    
    
    $
    1,236,509
  CPA®:17 2010 10-K 60




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##### Table of Contents



CORPORATE PROPERTY ASSOCIATES 17  GLOBAL INCORPORATED
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS  (in thousands)
 For the years ended December 31,2010
    
    
    2009
    
    
    2008Cash Flows  Operating ActivitiesNet income (loss)
    
    $
    45,787
    
    
    $
    2,180
    
    
    $
    (1,650
    )Adjustments to net income (loss):Depreciation and amortization, including intangible assets
    
    
    14,973
    
    
    
    5,088
    
    
    
    1,841Straight-line rent adjustments and amortization of rent-related intangibles
    
    
    (4,040
    )
    
    
    (3,425
    )
    
    
    (315
    )Income from equity investment in real estate in excess of distributions received
    
    
    
    
    
    
    326
    
    
    
    1,793Issuance of shares to affiliate in satisfaction of fees due
    
    
    4,561
    
    
    
    2,676
    
    
    
    590Amortization of discount on commercial mortgage-backed securities
    
    
    
    
    
    
    (668
    )
    
    
    (356
    )Realized (gain) loss on foreign currency transactions and others, net
    
    
    (777
    )
    
    
    2,519
    
    
    
    363Unrealized loss on foreign currency and derivative transactions
    
    
    85
    
    
    
    13
    
    
    
    1,403Impairment charges on net investments in properties and
commercial mortgage-backed securities
    
    
    
    
    
    
    23,904
    
    
    
    Increase in accounts receivable and prepaid expenses
    
    
    (2,430
    )
    
    
    (514
    )
    
    
    (414
    )Increase in accounts payable and accrued expenses
    
    
    5,075
    
    
    
    749
    
    
    
    2,453Increase in prepaid and deferred rental income
    
    
    3,868
    
    
    
    2,432
    
    
    
    2,317Increase (decrease) in due to affiliates
    
    
    3,574
    
    
    
    78
    
    
    
    (3,300
    )Change in other operating assets and liabilities, net
    
    
    (2,701
    )
    
    
    (3,118
    )
    
    
    (282
    )Net cash provided by operating activities
    
    
    67,975
    
    
    
    32,240
    
    
    
    4,443Cash Flows  Investing ActivitiesDistributions received from equity investments in real estate in excess of equity
income
    
    
    2,761
    
    
    
    2,282
    
    
    
    Acquisitions of real estate and direct financing leases and other capital
expenditures (a) (b)
    
    
    (917,897
    )
    
    
    (430,448
    )
    
    
    (273,517
    )Contributions to equity investments in real estate
    
    
    (10,648
    )
    
    
    (22,798
    )
    
    
    (23,074
    )Proceeds from sale of real estate
    
    
    1,690
    
    
    
    
    
    
    
    VAT paid in connection with acquisitions in real estate
    
    
    (53,241
    )
    
    
    (14,881
    )
    
    
    VAT refunded in connection with acquisitions in real estate
    
    
    40,441
    
    
    
    
    
    
    
    Proceeds from repayment of notes receivable
    
    
    7,440
    
    
    
    
    
    
    
    Purchase of marketable securities
    
    
    
    
    
    
    
    
    
    
    (19,965
    )Funds for construction placed into escrow
    
    
    (298
    )
    
    
    
    
    
    
    Funds for construction released in escrow
    
    
    873
    
    
    
    
    
    
    
    Funds for future investments placed in escrow
    
    
    (52,482
    )
    
    
    (107,047
    )
    
    
    Funds for future investments released from escrow
    
    
    52,482
    
    
    
    106,510
    
    
    
    Purchase of notes receivable
    
    
    (90,695
    )
    
    
    (7,000
    )
    
    
    Tenant security deposits placed under restriction
    
    
    (3,182
    )
    
    
    
    
    
    
    Payment of deferred acquisition fees to an affiliate
    
    
    (7,204
    )
    
    
    (3,263
    )
    
    
    (1,831
    )Net cash used in investing activities
    
    
    (1,029,960
    )
    
    
    (476,645
    )
    
    
    (318,387
    )Cash Flows  Financing ActivitiesDistributions paid
    
    
    (60,937
    )
    
    
    (27,193
    )
    
    
    (5,196
    )Contributions from noncontrolling interests
    
    
    412
    
    
    
    103,364
    
    
    
    31,527Distributions to noncontrolling interests
    
    
    (12,959
    )
    
    
    (71,946
    )
    
    
    (23
    )Proceeds from non-recourse and limited recourse debt financing
    
    
    425,881
    
    
    
    170,805
    
    
    
    139,685Scheduled payments of non-recourse and limited recourse debt
    
    
    (6,541
    )
    
    
    (4,494
    )
    
    
    (540
    )Prepayment of non-recourse debt financing
    
    
    (53,017
    )
    
    
    
    
    
    
    Payment of mortgage deposits and deferred financing costs, net of deposits refunded
    
    
    (4,094
    )
    
    
    (4,574
    )
    
    
    Proceeds from issuance of shares, net of offering costs
    
    
    557,895
    
    
    
    404,200
    
    
    
    310,232Proceeds from tenant security deposits
    
    
    3,182
    
    
    
    
    
    
    
    Purchase of treasury stock
    
    
    (5,730
    )
    
    
    (2,314
    )
    
    
    Net cash provided by financing activities
    
    
    844,092
    
    
    
    567,848
    
    
    
    475,685Change in Cash and Cash Equivalents During the YearEffect of exchange rate changes on cash
    
    
    (916
    )
    
    
    (3,458
    )
    
    
    (355
    )Net (decrease) increase in cash and cash equivalents
    
    
    (118,809
    )
    
    
    119,985
    
    
    
    161,386Cash and cash equivalents, beginning of year
    
    
    281,554
    
    
    
    161,569
    
    
    
    183Cash and cash equivalents, end of year
    
    $
    162,745
    
    
    $
    281,554
    
    
    $
    161,569
  CPA®:17 2010 10-K 61




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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 2010, 2009 and 2008 also
includes deferred acquisition fees payable of $18.8 million, $7.6 million and $5.4
million, respectively.(b)
    
    For 2010, includes the assumption of the sellers limited recourse mortgage of $5.9
million in connection with the acquisition of a hotel.
 Supplemental cash flow information (in thousands):
 Years ended December 31,2010
    
    
    2009
    
    
    2008Interest paid, net of amounts capitalized
    
    $
    26,275
    
    
    $
    10,726
    
    
    $
    2,181Interest capitalized
    
    $
    315
    
    
    $
    1,088
    
    
    $
    Income taxes (refunded) paid
    
    $
    (111
    )
    
    $
    507
    
    
    $
    135
  CPA®:17 2010 10-K 62




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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 2010 10-K 63




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Notes to Consolidated Financial Statements
  ®:
    CPA®:17 2010 10-K 64




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##### Table of Contents



Notes to Consolidated Financial Statements
  Years ended December 31,2010
    
    
    2009Assets:Cash and cash equivalents not attributable to consolidated VIE
    
    $
    2,502
    
    
    $
    61Other assets, net not attributable to consolidated VIE
    
    
    1,038
    
    
    
    4,307Total assets not attributable to consolidated VIE
    
    $
    3,540
    
    
    $
    4,368Liabilities:Due to affiliates not attributable to consolidated VIE
    
    $
    (408
    )
    
    $
    (170
    )Distributions payable not attributable to consolidated VIE
    
    
    (21,520
    )
    
    
    (11,675
    )Total liabilities not attributable to consolidated VIE
    
    $
    (21,928
    )
    
    $
    (11,845
    )
  Use of Estimates
  Reclassifications and Revisions
  Purchase Price Allocation
    CPA®:17 2010 10-K 65




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##### Table of Contents



Notes to Consolidated Financial Statements
  Real Estate and Operating Real Estate
  Real Estate Under Construction
  Cash and Cash Equivalents
  Notes Receivable
  Commercial Mortgage Backed Securities
  Other Assets and Other Liabilities
  Deferred Acquisition Fees Payable to Affiliate
  CPA®:17 2010 10-K 66




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##### Table of Contents



Notes to Consolidated Financial Statements
 Treasury Stock
  Offering Costs
  Real Estate Leased to Others
    Operating leases
 Direct financing leases
  Acquisition Costs
  CPA®:17 2010 10-K 67




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##### Table of Contents



Notes to Consolidated Financial Statements
  Depreciation
  Interest Capitalized in Connection with Real Estate Under Construction
  Impairments
  Real Estate
  Direct Financing Leases
  Equity Investments in Real Estate
  CPA®:17 2010 10-K 68




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##### Table of Contents



Notes to Consolidated Financial Statements
 Commercial Mortgage-Backed Securities
     Foreign Currency Translation
    CPA®:17 2010 10-K 69




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##### Table of Contents



Notes to Consolidated Financial Statements
 Derivative Instruments
   Income Taxes
    Income (Loss) Per Share
  Note 3. Agreements and Transactions with Related Parties
  CPA®:17 2010 10-K 70




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##### Table of Contents



Notes to Consolidated Financial Statements
 Transaction Fees
    Asset Management Fee and Cash Distributions
   Organization and Offering Expenses
  CPA®:17 2010 10-K 71




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##### Table of Contents



Notes to Consolidated Financial Statements
  Other Expenses
  Joint Ventures and Other Transactions with Affiliates
 Other
   Proposed Asset Purchase
 ® ® ® ® ®
 ® ® ® ® ® ®
 CPA®:17 2010 10-K 72




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##### Table of Contents



Notes to Consolidated Financial Statements
 Note 4. Net Investments in Properties
 Net Investments in Properties and Real Estate Under Construction
  December 31,2010
    
    
    2009Land
    
    $
    243,475
    
    
    $
    62,597Buildings
    
    
    698,742
    
    
    
    263,910Furniture, fixtures and equipment
    
    
    364
    
    
    
    Less: Accumulated depreciation
    
    
    (16,574
    )
    
    
    (5,957
    )$
    926,007
    
    
    $
    320,550
 Acquisitions of Real Estate
  2010
 
    
    ten domestic investments totaling $446.2 million, including investments with CARQUEST,
J.P. Morgan Chase N.A. (J.P. Morgan Chase) and Flint River Services, LLC (Flint River)
totaling $240.7 million, $57.2 million and $52.4 million, respectively. In addition to the
domestic portion of the CARQUEST transaction above, we also acquired two distribution
centers in Canada at a total cost of $19.0 million. We recorded an additional $22.5 million
related to one of these investments as net investments in direct financing leases (Note 5);
    
    two investments with Agrokor in Croatia for $151.4 million primarily denominated in
Euros, with a portion denominated in the Croatian Kuna. We recorded an additional $13.4
million related to these investments as net investments in direct financing leases
    
    three investments in Spain aggregating $189.5 million denominated in Euros, including two
transactions with Eroski totaling $76.9 million, one of which was the second tranche of an
investment that we completed in the fourth quarter of 2009, and an investment with Sogecable
totaling $112.6 million; and
    
    one investment in the United Kingdom for $12.1 million denominated in British Pounds
Sterling. We classified an additional $24.5 million of this investment as net investments in
direct financing leases (Note 5).
  2009
 
    
    two domestic investments totaling $77.0 million;
    
    two international investments totaling $69.8 million, denominated in Euros, including the
first tranche of an investment with Eroski of $54.8 million, the second tranche of which was
completed in 2010.
 .
 CPA®:17 2010 10-K 73




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##### Table of Contents



Notes to Consolidated Financial Statements
 Operating Real Estate, net
  Real Estate Under Construction
 2010
  2009
 Scheduled Future Minimum Rents
  Years ending December 31,2011
    
    $
    90,8382012
    
    
    91,3652013
    
    
    91,6152014
    
    
    91,8552015
    
    
    92,296Thereafter through 2034
    
    
    1,318,899
  CPA®:17 2010 10-K 74




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##### Table of Contents



Notes to Consolidated Financial Statements
 Note 5. Finance Receivables
  Net Investment in Direct Financing Leases
  December 31,2010
    
    
    2009Minimum lease payments receivable
    
    $
    708,675
    
    
    $
    587,297Unguaranteed residual value
    
    
    392,864
    
    
    
    301,4741,101,539
    
    
    
    888,771Less: unearned income
    
    
    (704,533
    )
    
    
    (585,521
    )$
    397,006
    
    
    $
    303,250
   Years ending December 31,2011
    
    $
    39,1592012
    
    
    39,5392013
    
    
    39,9162014
    
    
    40,3002015
    
    
    40,688Thereafter through 2030
    
    
    509,073
  Acquisitions of Net Investments in Direct Financing Leases
 2010
 2009 ®
 CPA®:17 2010 10-K 75




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##### Table of Contents



Notes to Consolidated Financial Statements
 Notes Receivable
   Credit Quality of Finance Receivables
   Net Investment inInternal Credit
    
    
    
    
    Direct Financing
    
    
    Number ofQuality Indicator
    
    
    Number of Tenants
    
    Leases
    
    
    Obligors
    
    
    Note Receivable
    
    
    Total1
    
    
    
    
    $
    
    
    
    
    
    
    
    $
    
    
    
    $
    2
    
    
    5
    
    
    100,255
    
    
    
    1
    
    
    
    40,000
    
    
    
    140,2553
    
    
    2
    
    
    271,734
    
    
    
    1
    
    
    
    49,560
    
    
    
    321,2944
    
    
    1
    
    
    25,017
    
    
    
    
    
    
    
    
    
    
    
    25,0175
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    397,006
    
    
    
    
    
    
    $
    89,560
    
    
    $
    486,566
  Note 6. Equity Investments in Real Estate
  CPA®:17 2010 10-K 76




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##### Table of Contents



Notes to Consolidated Financial Statements
  Ownership
    
    
    Carrying Value atInterest at
    
    
    December 31,Lessee
    
    December 31, 2010
    
    
    2010
    
    
    2009Berry Plastics
    
    
    50
    %
    
    $
    20,330
    
    
    $
    21,414Tesco plc(a)
    
    
    49
    %
    
    
    19,903
    
    
    
    22,081Eroski Sociedad Cooperativa  Mallorca (a) (b)
    
    
    30
    %
    
    
    10,620
    
    
    
    $
    50,853
    
    
    $
    43,495
 
 (a)
    
    The carrying value of this investment is affected by the impact of fluctuations in the
exchange rate of the Euro.(b)
    
    We acquired our interest in this investment in June 2010.  December 31,2010
    
    
    2009Assets
    
    $
    203,989
    
    
    $
    181,600Liabilities
    
    
    (79,786
    )
    
    
    (84,522
    )Partners/members equity
    
    $
    124,203
    
    
    $
    97,078
 Years ended December 31,2010
    
    
    2009
    
    
    2008Revenue
    
    $
    15,961
    
    
    $
    10,080
    
    
    $
    6,660Expenses
    
    
    (12,874
    )
    
    
    (8,330
    )
    
    
    (5,383
    )Gain on extinguishment of debt (a)
    
    
    
    
    
    
    6,512
    
    
    
    Net income
    
    $
    3,087
    
    
    $
    8,262
    
    
    $
    1,277
 
 (a)
    
    During 2009, the Berry Plastics 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 net assets.  Acquisitions of Equity Investments in Real Estate
  2010
 CPA®:17 2010 10-K 77




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Notes to Consolidated Financial Statements
 2009
 Note 7. Securities Held to Maturity
    Estimated FairDescription
    
    Face Value
    
    
    Amortized Cost
    
    
    Unrealized Gain
    
    
    ValueCMBS
    
    $
    33,284
    
    
    $
    3,797
    
    
    $
    880
    
    
    $
    4,677
 Note 8. Intangible Assets, net
   December 31,2010
    
    
    2009Lease intangibles:In-place lease
    
    $
    200,598
    
    
    $
    26,518Tenant relationship
    
    
    10,419
    
    
    
    4,850Above-market rent
    
    
    47,697
    
    
    
    16,788Less: Accumulated amortization
    
    
    (6,636
    )
    
    
    (1,490
    )Total intangible assets
    
    $
    252,078
    
    
    $
    46,666Below-market rent
    
    $
    (11,619
    )
    
    $
    (7,244
    )Less: accumulated amortization
    
    
    421
    
    
    
    121Total intangible liabilities
    
    $
    (11,198
    )
    
    $
    (7,123
    )
 CPA®:17 2010 10-K 78




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##### Table of Contents



Notes to Consolidated Financial Statements
  Note 9. Fair Value Measurements
  Items Measured at Fair Value on a Recurring Basis
  Money Market Funds 
 Derivative Assets and Liabilities 
  Fair Value Measurements at December 31, 2010 Using:Quoted Prices inActive Markets for
    
    
    Significant Other
    
    
    UnobservableIdentical Assets
    
    
    Observable Inputs
    
    
    InputsDescription
    
    Total
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Assets:Money market funds
    
    $
    102,084
    
    
    $
    102,084
    
    
    $
    
    
    
    $
    Derivative assets
    
    
    751
    
    
    
    
    
    
    
    751
    
    
    
    $
    102,835
    
    
    $
    102,084
    
    
    $
    751
    
    
    $
    Liabilities:Derivative liabilities
    
    $
    (2,215
    )
    
    $
    
    
    
    $
    (2,215
    )
    
    $
    
 CPA®:17 2010 10-K 79




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##### Table of Contents



Notes to Consolidated Financial Statements
 Fair Value Measurements at December 31, 2009 Using:Quoted Prices inActive Markets for
    
    
    Significant Other
    
    
    UnobservableIdentical Assets
    
    
    Observable Inputs
    
    
    InputsDescription
    
    Total
    
    
    (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, 2010
    
    
    December 31, 2009Carrying Value
    
    
    Fair Value
    
    
    Carrying Value
    
    
    Fair ValueDebt
    
    $
    667,478
    
    
    $
    674,225
    
    
    $
    300,908
    
    
    $
    291,737CMBS (a)
    
    
    3,797
    
    
    
    4,677
    
    
    
    3,818
    
    
    
    3,818
 
 (a)
    
    Carrying value represents historical cost, inclusive of impairment charges recognized during
2009 (Note 7).  Items Measured at Fair Value on a Non-Recurring Basis
  CPA®:17 2010 10-K 80




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##### Table of Contents



Notes to Consolidated Financial Statements
  Year ended December 31, 2010
    
    
    Year ended December 31, 2009Total Fair Value
    
    
    Total Impairment
    
    
    Total Fair Value
    
    
    Total ImpairmentMeasurements
    
    
    Charges
    
    
    Measurements
    
    
    ChargesAssets:Net investments in properties
    
    $
    
    
    
    $
    
    
    
    $
    17,779
    
    
    $
    7,471Net investments in direct financing leases
    
    
    
    
    
    
    
    
    
    
    28,833
    
    
    
    800Equity investments in real estate
    
    
    
    
    
    
    
    
    
    
    24,244
    
    
    
    2,930Commercial mortgage-backed securities (a)
    
    
    
    
    
    
    
    
    
    
    3,818
    
    
    
    17,138$
    
    
    
    $
    
    
    
    $
    74,674
    
    
    $
    28,339
 
 (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 OCL in equity (Note 7). Note 10. Risk Management and Use of Derivative Financial Instruments
 Risk Management
  Foreign Currency Exchange
  Use of Derivative Financial Instruments
  CPA®:17 2010 10-K 81




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Notes to Consolidated Financial Statements
   Asset Derivatives Fair Value
    
    
    Liabilities Derivatives Fair ValueDerivatives Designated
    
    
    
    at December 31,
    
    
    at December 31,as Hedging Instruments
    
    Balance Sheet Location
    
    2010
    
    
    2009
    
    
    2010
    
    
    2009Interest rate cap
    
    Other assets, net
    
    $
    733
    
    
    $
    2,985
    
    
    $
    
    
    
    $
    Interest rate swap
    
    Other assets, net
    
    
    18
    
    
    
    
    
    
    
    
    
    
    
    Interest rate swap
    
    Accounts payable,
accrued expenses and
other liabilities
    
    
    
    
    
    
    
    
    
    
    (1,134
    )
    
    
    (20
    )Foreign exchange
    
    Accounts payable, accrued expensescontract
    
    and
other liabilities
    
    
    
    
    
    
    
    
    
    
    (1,081
    )
    
    
    $
    751
    
    
    $
    2,985
    
    
    $
    (2,215
    )
    
    $
    (20
    )
   Amount of Gain (Loss)Recognized in OCI onDerivatives (Effective Portion)Years ended December 31,Derivatives in Cash Flow Hedging Relationships
    
    2010
    
    
    2009Interest rate cap (a)
    
    $
    (2,221
    )
    
    $
    (461
    )Interest rate swaps
    
    
    (1,073
    )
    
    
    (20
    )Foreign currency forward contract
    
    
    (1,081
    )
    
    
    Total
    
    $
    (4,375
    )
    
    $
    (481
    )
 Amount of Gain (Loss)Recognized in Income on DerivativesDerivatives not in Cash Flow
    
    Location of Gain (Loss)
    
    Years ended December 31,Hedging Relationships
    
    Recognized in Income
    
    2010
    
    
    2009
    
    
    2008Embedded credit derivative (b)
    
    Other income and (expenses)
    
    $
    
    
    
    $
    
    
    
    $
    (1,404
    )Total
    
    
    
    $
    
    
    
    $
    
    
    
    $
    (1,404
    )
 
 (a)
    
    For the years ended December 31, 2010 and 2009, losses of $1.0 million and $0.2 million,
respectively, 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 2010 and 2009.  CPA®:17 2010 10-K 82




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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, 20103-Month LIBOR
    
    Interest rate cap (a)
    
    $
    116,684
    
    
    
    8.8
    %
    
    
    8/2009
    
    
    
    8/2014
    
    
    $
    7333-Month LIBOR
    
    Pay-fixed swap
    
    
    26,621
    
    
    
    3.7
    %
    
    
    1/2010
    
    
    
    12/2019
    
    
    
    (1,134
    )3-Month Euribor
    
    Pay-fixed swap
    
    
    8,070
    
    
    
    2.6
    %
    
    
    7/2010
    
    
    
    11/2017
    
    
    
    18$
    (383
    )
 
 (a)
    
    The applicable interest rate of the related debt was 5.05%, which was below the interest rate
cap at December 31, 2010. Inclusive of noncontrolling interests in the notional amount and
fair value of the swap of $52.5 million and $0.3 million, respectively.  Foreign Currency Contracts
   Embedded Credit Derivative
  CPA®:17 2010 10-K 83




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##### Table of Contents



Notes to Consolidated Financial Statements
 Other
   Concentration of Credit Risk
   Note 11. Impairment Charges on Net Investments in Real Estate
   Years ended December 31,2010
    
    
    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 for the
year ended December 31, 2009.(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 2010 10-K 84




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##### Table of Contents



Notes to Consolidated Financial Statements
 Waldaschaff Automotive GmbH and Wagon Automotive Nagold GmbH
  Berry Plastics
  Note 12. Non-Recourse and Limited Recourse Debt
 2010
 
    
    $212.3 million related to six domestic investments acquired during 2010, including
non-recourse mortgage financing obtained in connection with the CARQUEST transaction
totaling $117.0 million, which bears interest at a fixed-rate of 5.17% and matures in
December 2020, and financing obtained in connection with the J.P. Morgan Chase and Flint
River transactions of $35.4 million and $27.0 million, respectively;
    
    $139.7 million related to our Agrokor investments. In April 2010, we obtained financing
of $52.4 million in connection with our first investment with Agrokor. In December 2010, we
obtained financing of $34.3 million on our second Agrokor investment. In conjunction with
this financing, we also refinanced the non-recourse mortgage loan obtained in April 2010
with new non-recourse financing of $53.0 million;
    
    $52.2 million related to the Eroski transaction in Spain, with the first tranche of the
transaction completed in the fourth quarter of 2009 and the second tranche completed during
the first quarter of 2010 (Note 4);
    
    $19.5 million related to a domestic build-to-suit project that we placed into service in
January 2010 (Note 4); and
    
    $8.0 million related to a secured line of credit obtained in connection with a Polish
investment acquired in October 2009. We have drawn the full amount as of December 31, 2010.
This debt bears interest at a variable-rate that has been effectively converted to a fixed
annual interest rate through the use of an interest rate swap.
 2009
 
    
    $119.8 million related to the August 2009 New York Times transaction, inclusive of
noncontrolling interests of $53.9 million. The financing bears interest at an annual
interest rate of LIBOR plus 4.8%, with a minimum rate of 4.8% and a maximum rate that has
been capped at 8.8% through the use of an interest rate cap designated as a cash flow hedge
and matures in September 2014 (Note 10). In July 2010, we purchased for $50.1 million a
participation in this limited recourse mortgage (Note 5);
    
    $28.5 million related to a domestic investment acquired in December 2009. A portion of
this debt bears interest at a variable-rate that has been effectively converted to a fixed
annual interest rate through the use of an interest rate swap (Note 10); and
 CPA ® :17 2010 10-K 85




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##### Table of Contents



Notes to Consolidated Financial Statements
 
    
    $23.4 million, inclusive of amounts attributable to noncontrolling interests of $9.4
million, related to a domestic investment acquired in December 2008.
    Years ending December 31,
    
    Total2011
    
    $
    11,5302012
    
    
    12,5292013
    
    
    14,2562014
    
    
    120,8272015
    
    
    55,681Thereafter through 2028
    
    
    452,655Total
    
    $
    667,478
 Note 13. Commitments and Contingencies
  Note 14. Equity
 Distributions
  Years Ended December 31,2010
    
    
    2009
    
    
    2008Ordinary income
    
    $
    0.34
    
    
    $
    0.32
    
    
    $
    0.32Return of capital
    
    
    0.30
    
    
    
    0.31
    
    
    
    0.24Total distributions
    
    $
    0.64
    
    
    $
    0.63
    
    
    $
    0.56
   CPA ® :17 2010 10-K 86




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##### Table of Contents



Notes to Consolidated Financial Statements
 Accumulated Other Comprehensive Loss
  December 31,2010
    
    
    2009Foreign currency translation adjustment
    
    $
    (9,796
    )
    
    $
    (3,136
    )Unrealized loss on derivative instrument
    
    
    (3,642
    )
    
    
    (261
    )Impairment loss on commercial mortgage-backed securities
    
    
    (1,505
    )
    
    
    (1,505
    )Accumulated other comprehensive loss
    
    $
    (14,943
    )
    
    $
    (4,902
    )
 Note 15. Income Taxes
    December 31, 2010Balance at January 1,
    
    $
    Additions based on tax positions related to the current year
    
    
    215Balance at December 31,
    
    $
    215
    Note 16. Segment Information
  2010
    
    Domestic
    
    
    Foreign(a)
    
    
    Total CompanyRevenues
    
    $
    72,330
    
    
    $
    27,192
    
    
    $
    99,522Total long-lived assets (b)
    
    
    911,254
    
    
    
    515,653
    
    
    
    1,426,907
 2009
    
    Domestic
    
    
    Foreign(a)
    
    
    Total CompanyRevenues
    
    $
    41,983
    
    
    $
    8,363
    
    
    $
    50,346Total long-lived assets (b)
    
    
    506,604
    
    
    
    191,728
    
    
    
    698,332
 CPA ® :17 2010 10-K 87




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##### Table of Contents



Notes to Consolidated Financial Statements
 2008
    
    Domestic
    
    
    Foreign(a)
    
    
    Total CompanyRevenues
    
    $
    5,923
    
    
    $
    3,761
    
    
    $
    9,684Total long-lived assets (b)
    
    
    174,942
    
    
    
    98,372
    
    
    
    273,314
 
 (a)
    
    All years include operations in Germany; 2009 and 2010 also include operations in Hungary,
Poland, Spain and the United Kingdom; and 2010 also includes operations in Canada and Croatia.(b)
    
    Consists of real estate, net; net investment in direct financing leases and equity
investments in real estate. Note 17. Selected Quarterly Financial Data (unaudited)
  Three months endedMarch 31, 2010
    
    
    June 30, 2010
    
    
    September 30, 2010
    
    
    December 31, 2010Revenues
    
    $
    18,296
    
    
    $
    23,564
    
    
    $
    26,575
    
    
    $
    31,087Operating expenses
    
    
    (4,504
    )
    
    
    (6,880
    )
    
    
    (7,633
    )
    
    
    (9,113
    )Net income
    
    
    9,406
    
    
    
    10,505
    
    
    
    13,140
    
    
    
    12,736Less: Net income attributable to
noncontrolling interests
    
    
    (3,283
    )
    
    
    (3,850
    )
    
    
    (4,427
    )
    
    
    (3,773
    )Net income attributable to
CPA®17  Global Shareholders
    
    
    6,123
    
    
    
    6,655
    
    
    
    8,713
    
    
    
    8,963Earnings per share attributable to
CPA®17  Global Shareholders
    
    
    0.07
    
    
    
    0.06
    
    
    
    0.07
    
    
    
    0.07Distributions declared per share
    
    
    0.1600
    
    
    
    0.1600
    
    
    
    0.1600
    
    
    
    0.1600
 Three months endedMarch 31, 2009
    
    
    June 30, 2009
    
    
    September 30, 2009
    
    
    December 31, 2009Revenues
    
    $
    8,709
    
    
    $
    13,584
    
    
    $
    13,453
    
    
    $
    14,600Operating expenses
    
    
    (3,690
    )
    
    
    (3,536
    )
    
    
    (1,467
    )
    
    
    (27,335
    )Net income (loss) (a)
    
    
    1,515
    
    
    
    8,174
    
    
    
    8,415
    
    
    
    (15,924
    )Less: Net income 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
 
 (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). Note 18. Pro Forma Financial Information (unaudited)
  CPA ® :17 2010 10-K 88




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##### Table of Contents



Notes to Consolidated Financial Statements
  Years ended December 31,2010
    
    
    2009
    
    
    2008Pro forma total revenues
    
    $
    154,808
    
    
    $
    156,542
    
    
    $
    159,147Pro forma net income (a)
    
    
    50,675
    
    
    
    33,899
    
    
    
    60,726Less: Net income attributable to noncontolling interests
    
    
    (15,878
    )
    
    
    (10,750
    )
    
    
    (10,684
    )Pro forma net income attributable to CPA®:17  Global Shareholders
    
    
    34,797
    
    
    
    23,149
    
    
    
    50,042Pro forma earnings per share (a):Net income attributable to CPA®:17  Global Shareholders
    
    
    0.36
    
    
    
    0.24
    
    
    
    0.36
 
 (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 19. Subsequent Events
   CPA ® :17 2010 10-K 89




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##### Table of Contents



CORPORATE PROPERTY ASSOCIATES 17  GLOBAL INCORPORATED
 SCHEDULE III  REAL ESTATE and ACCUMULATED DEPRECIATION
 at December 31, 2010
 (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
    
    $
    1,828
    
    
    $
    625
    
    
    $
    1,713
    
    
    $
    
    
    
    $
    107
    
    
    $
    625
    
    
    $
    1,820
    
    
    $
    2,445
    
    
    $
    157
    
    
    Jun. 2008
    
    30 yrs.Residential and office facilities in Soest, Germany and
warehouse/distribution facility in Bad Wünnenbeg, Germany
    
    
    29,095
    
    
    
    3,193
    
    
    
    45,932
    
    
    
    
    
    
    
    (7,568
    )
    
    
    2,673
    
    
    
    38,884
    
    
    
    41,557
    
    
    
    2,578
    
    
    Jul. 2008
    
    36 yrs.Educational facility in Chicago, IL
    
    
    16,005
    
    
    
    6,300
    
    
    
    20,509
    
    
    
    
    
    
    
    (527
    )
    
    
    6,300
    
    
    
    19,982
    
    
    
    26,282
    
    
    
    1,709
    
    
    Jul. 2008
    
    30 yrs.Office and industrial facility in Alvarado, TX and
industrial facility in Bossier City, LA
    
    
    15,460
    
    
    
    2,725
    
    
    
    25,233
    
    
    
    1,470
    
    
    
    (3,395
    )
    
    
    2,725
    
    
    
    23,308
    
    
    
    26,033
    
    
    
    1,450
    
    
    Aug. 2008
    
    25 - 40 yrs.Industrial facility in Waldaschaff, Germany
    
    
    8,298
    
    
    
    10,373
    
    
    
    16,708
    
    
    
    
    
    
    
    (9,966
    )
    
    
    6,444
    
    
    
    10,671
    
    
    
    17,115
    
    
    
    1,257
    
    
    Aug. 2008
    
    15 yrs.Retail facilities in Phoenix, AZ and Columbia, MD
    
    
    38,533
    
    
    
    14,500
    
    
    
    48,865
    
    
    
    
    
    
    
    (2,063
    )
    
    
    14,499
    
    
    
    46,803
    
    
    
    61,302
    
    
    
    2,633
    
    
    Sep. 2008
    
    40 yrs.Transportation facility in Birmingham, United Kingdom
    
    
    
    
    
    
    3,591
    
    
    
    15,810
    
    
    
    949
    
    
    
    (762
    )
    
    
    3,424
    
    
    
    16,164
    
    
    
    19,588
    
    
    
    407
    
    
    Sep. 2009
    
    40 yrs.Retail facilities in Gorzow, Poland
    
    
    8,070
    
    
    
    1,095
    
    
    
    13,947
    
    
    
    
    
    
    
    (1,413
    )
    
    
    987
    
    
    
    12,642
    
    
    
    13,629
    
    
    
    395
    
    
    Oct. 2009
    
    40 yrs.Office facility in Hoffman Estates, IL
    
    
    19,910
    
    
    
    5,000
    
    
    
    21,764
    
    
    
    
    
    
    
    
    
    
    
    5,000
    
    
    
    21,764
    
    
    
    26,764
    
    
    
    581
    
    
    Dec. 2009
    
    40 yrs.Office facility in The Woodlands, TX
    
    
    27,367
    
    
    
    1,400
    
    
    
    41,502
    
    
    
    
    
    
    
    
    
    
    
    1,400
    
    
    
    41,502
    
    
    
    42,902
    
    
    
    1,123
    
    
    Dec. 2009
    
    40 yrs.Retail facilities located throughout Spain
    
    
    50,361
    
    
    
    32,574
    
    
    
    52,101
    
    
    
    
    
    
    
    (4,462
    )
    
    
    30,734
    
    
    
    49,479
    
    
    
    80,213
    
    
    
    1,203
    
    
    Dec. 2009
    
    20 yrs.Industrial facility in Union Township, OH
    
    
    6,904
    
    
    
    1,000
    
    
    
    10,793
    
    
    
    
    
    
    
    
    
    
    
    1,000
    
    
    
    10,793
    
    
    
    11,793
    
    
    
    247
    
    
    Feb. 2010
    
    40 yrs.Industrial facilities in San Diego, Fresno, Orange, Colton,
Los Angeles and Pomona, CA; Phoenix, AZ; Safety Harbor, FL;
Durham, NC and Columbia, SC
    
    
    
    
    
    
    19,001
    
    
    
    13,059
    
    
    
    
    
    
    
    
    
    
    
    19,001
    
    
    
    13,059
    
    
    
    32,060
    
    
    
    295
    
    
    Mar. 2010
    
    27 - 40 yrs.Industrial facility in Evansville, IN
    
    
    
    
    
    
    150
    
    
    
    9,183
    
    
    
    
    
    
    
    
    
    
    
    150
    
    
    
    9,183
    
    
    
    9,333
    
    
    
    172
    
    
    Mar. 2010
    
    40 yrs.Warehouse/distribution facilities in Plymouth, Southampton,
Luton, Liverpool, Taunton, Cannock and Bristol, United
Kingdom
    
    
    
    
    
    
    8,639
    
    
    
    2,019
    
    
    
    
    
    
    
    68
    
    
    
    8,679
    
    
    
    2,047
    
    
    
    10,726
    
    
    
    59
    
    
    Apr. 2010
    
    28 yrs.Warehouse/distribution facilities in Zagreb, Croatia
    
    
    53,807
    
    
    
    31,941
    
    
    
    45,904
    
    
    
    
    
    
    
    81
    
    
    
    31,975
    
    
    
    45,951
    
    
    
    77,926
    
    
    
    1,021
    
    
    Apr. 2010
    
    30 yrs.Office facilities in Tampa, FL
    
    
    35,425
    
    
    
    18,300
    
    
    
    32,856
    
    
    
    
    
    
    
    
    
    
    
    18,300
    
    
    
    32,856
    
    
    
    51,156
    
    
    
    479
    
    
    May. 2010
    
    40 yrs.Retail facility in Elorrio, Spain
    
    
    
    
    
    
    19,924
    
    
    
    3,981
    
    
    
    
    
    
    
    2,282
    
    
    
    21,867
    
    
    
    4,320
    
    
    
    26,187
    
    
    
    63
    
    
    Jun. 2010
    
    40 yrs.Office and industrial facilities in Elberton, GA
    
    
    
    
    
    
    560
    
    
    
    2,467
    
    
    
    
    
    
    
    
    
    
    
    560
    
    
    
    2,467
    
    
    
    3,027
    
    
    
    24
    
    
    Sep. 2010
    
    40 yrs.Warehouse/distribution facilities in Unadilla and Rincon, GA
    
    
    27,000
    
    
    
    1,595
    
    
    
    44,446
    
    
    
    
    
    
    
    
    
    
    
    1,595
    
    
    
    44,446
    
    
    
    46,041
    
    
    
    185
    
    
    Nov. 2010
    
    40 yrs.Office facility in Hartland, WI
    
    
    
    
    
    
    1,402
    
    
    
    2,041
    
    
    
    
    
    
    
    
    
    
    
    1,402
    
    
    
    2,041
    
    
    
    3,443
    
    
    
    10
    
    
    Nov. 2010
    
    35 yrs.Warehouse/distribution facilities in Zagreb, Dugo Selo,
Kutina, Slavonski Brod and Samobor, Croatia
    
    
    24,232
    
    
    
    6,700
    
    
    
    24,114
    
    
    
    
    
    
    
    419
    
    
    
    6,797
    
    
    
    24,436
    
    
    
    31,233
    
    
    
    68
    
    
    Dec. 2010
    
    30 yrs.Warehouse/distribution facilities located throughout the
United States and Canada
    
    
    117,001
    
    
    
    31,735
    
    
    
    129,011
    
    
    
    
    
    
    
    23
    
    
    
    31,743
    
    
    
    129,026
    
    
    
    160,769
    
    
    
    158
    
    
    Dec. 2010
    
    40 yrs.Office facility in Madrid, Spain
    
    
    
    
    
    
    22,230
    
    
    
    81,508
    
    
    
    
    
    
    
    872
    
    
    
    22,427
    
    
    
    82,183
    
    
    
    104,610
    
    
    
    
    
    
    Dec. 2010
    
    40 yrs.Office facility in Houston, TX
    
    
    
    
    
    
    1,838
    
    
    
    2,432
    
    
    
    
    
    
    
    
    
    
    
    1,838
    
    
    
    2,432
    
    
    
    4,270
    
    
    
    
    
    
    Dec. 2010
    
    25 yrs.$
    479,296
    
    
    $
    246,391
    
    
    $
    707,898
    
    
    $
    2,419
    
    
    $
    (26,304
    )
    
    $
    242,145
    
    
    $
    688,259
    
    
    $
    930,404
    
    
    $
    16,274
 CPA ® :17 2010 10-K 90




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##### Table of Contents



SCHEDULE III  REAL ESTATE and ACCUMULATED DEPRECIATION (Continued)
 at December 31, 2010  (in thousands)
 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 and industrial facility in Nagold, Germany
    
    $
    13,090
    
    
    $
    6,012
    
    
    $
    41,493
    
    
    $
    
    
    
    $
    (22,488
    )
    
    $
    25,017
    
    
    Aug. 2008Industrial facilities in Sanford and Mayodan, NC
    
    
    22,986
    
    
    
    3,100
    
    
    
    35,766
    
    
    
    
    
    
    
    (279
    )
    
    
    38,587
    
    
    Dec. 2008Industrial facility in Glendale Heights, IL
    
    
    19,287
    
    
    
    3,820
    
    
    
    11,148
    
    
    
    18,245
    
    
    
    605
    
    
    
    33,818
    
    
    Jan. 2009Office facility in New York City, NY
    
    
    116,684
    
    
    
    
    
    
    
    233,720
    
    
    
    
    
    
    
    4,196
    
    
    
    237,916
    
    
    Mar. 2009Industrial facilities in San Diego, Fresno, Orange,
Colton and Pomona, CA; Holly Hill, FL; Rockmart,
GA; Ooltewah, TN and Dallas, TX
    
    
    
    
    
    
    1,730
    
    
    
    20,778
    
    
    
    
    
    
    
    (108
    )
    
    
    22,400
    
    
    Mar. 2010Warehouse/distribution facilities in Plymouth,
Newport, Southampton, Luton, Liverpool, Bristol and
Leeds, United Kingdom
    
    
    
    
    
    
    508
    
    
    
    24,009
    
    
    
    
    
    
    
    1,152
    
    
    
    25,669
    
    
    Apr. 2010Warehouse/distribution facilities in Zagreb, Croatia
    
    
    10,574
    
    
    
    1,804
    
    
    
    11,618
    
    
    
    
    
    
    
    177
    
    
    
    13,599
    
    
    Dec. 2010$
    182,621
    
    
    $
    16,974
    
    
    $
    378,532
    
    
    $
    18,245
    
    
    $
    (16,745
    )
    
    $
    397,006
 Life on whichDepreciationGross Amount at which Carried
    
    
    
    
    
    
    
    
    
    
    in LatestInitial Cost to Company
    
    
    Costs Capitalized
    
    
    Increase (Decrease)
    
    
    at Close of
Period(c)
    
    
    
    
    
    
    
    
    
    
    Statement ofPersonal
    
    
    Subsequent to
    
    
    in Net
    
    
    
    
    
    
    
    
    
    
    Personal
    
    
    
    
    
    
    Accumulated
    
    
    Date
    
    
    Income isDescription
    
    Encumbrances
    
    
    Land
    
    
    Buildings
    
    
    Property
    
    

Acquisition(a)
    
    

Investments(b)
    
    
    Land
    
    
    Buildings
    
    
    Property
    
    
    Total
    
    

Depreciation(c)
    
    
    Acquired
    
    
    ComputedOperating Real
Estate:Hotel in Hillsboro,
OR
    
    $
    5,561
    
    
    $
    1,330
    
    
    $
    10,483
    
    
    $
    364
    
    
    $
    
    
    
    $
    
    
    
    $
    1,330
    
    
    $
    10,483
    
    
    $
    364
    
    
    $
    12,177
    
    
    $
    300
    
    
    May. 2010
    
    
    39 yrs.$
    5,561
    
    
    $
    1,330
    
    
    $
    10,483
    
    
    $
    364
    
    
    $
    
    
    
    $
    
    
    
    $
    1,330
    
    
    $
    10,483
    
    
    $
    364
    
    
    $
    12,177
    
    
    $
    300
 CPA ® :17 2010 10-K 91




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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 Estate Subject toOperating LeasesYears ended December 31,2010
    
    
    2009
    
    
    2008Balance at beginning of year
    
    $
    326,507
    
    
    $
    168,981
    
    
    $
    Additions
    
    
    610,795
    
    
    
    149,323
    
    
    
    180,076Foreign currency translation adjustment
    
    
    (6,898
    )
    
    
    (282
    )
    
    
    (5,638
    )Impairment charges
    
    
    
    
    
    
    (7,700
    )
    
    
    Reclassification from (to) direct
financing lease, intangible assets or escrow
    
    
    
    
    
    
    16,185
    
    
    
    (5,457
    )Balance at close of year
    
    $
    930,404
    
    
    $
    326,507
    
    
    $
    168,981
 Reconciliation of Accumulated Depreciation forReal Estate Subject to Operating LeasesYears ended December 31,2010
    
    
    2009
    
    
    2008Balance at beginning of year
    
    $
    5,957
    
    
    $
    1,455
    
    
    $
    Depreciation expense
    
    
    10,484
    
    
    
    4,468
    
    
    
    1,455Foreign currency translation adjustment
    
    
    (167
    )
    
    
    34
    
    
    
    Balance at close of year
    
    $
    16,274
    
    
    $
    5,957
    
    
    $
    1,455
 Reconciliationof OperatingReal EstateYear endedDecember 31,2010Balance at beginning of year
    
    $
    Additions
    
    
    12,177Balance at close of year
    
    $
    12,177
 ReconciliationofAccumulatedDepreciationfor OperatingReal EstateYear endedDecember 31,2010Balance at beginning of year
    
    $
    Depreciation expense
    
    
    300Balance at close of year
    
    $
    300
 CPA ® :17 2010 10-K 92




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SCHEDULE IV  MORTGAGE LOANS ON REAL ESTATE
 at December 31, 2010
 (dollars in thousands)
 Final
    
    
    Face
    
    
    CarryingInterest
    
    
    Maturity
    
    
    Amount of
    
    
    Amount ofDescription
    
    Rate
    
    
    Date
    
    
    Mortgage
    
    
    MortgageParticipation in New York Times limited recourse mortgage loan(a)
    
    
    5.1
    %
    
    Sep. 2014
    
    
    50,000
    
    
    
    49,560Financing agreement- China Alliance Properties Limited
    
    
    11.0
    %
    
    Dec. 2015
    
    
    40,000
    
    
    
    40,000$
    90,000
    
    
    $
    89,560
 (a)
    
    Applicable annual interest rate at December 31, 2010. The participation provides for an
annual variable-rate of return of 4.75% plus 3 month LIBOR. 
 NOTES TO SCHEDULE IV  MORTGAGE LOANS ON REAL ESTATE
 (in thousands)
 Reconciliation ofMortgage Loans onReal EstateYear
ended December 31, 2010Balance at beginning of year
    
    $
    Additions
    
    
    90,000Repayment
    
    
    (440
    )Balance at close of year
    
    $
    89,560
 CPA ® :17 2010 10-K 93




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##### Table of Contents



BPLAST LANDLORD (DE) LLC
 Report of Independent Registered Public Accounting Firm
    
    
    95Balance Sheets
    
    
    96Statements of Income
    
    
    97Statements of Comprehensive Income
    
    
    98Statements of Members Equity
    
    
    99Statements of Cash Flows
    
    
    100Notes to Financial Statements
    
    
    101
 CPA ® :17 2010 10-K 94




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##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
   
 CPA ® :17 2010 10-K 95




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##### Table of Contents



BPLAST LANDLORD (DE) LLC
 
 BALANCE SHEETS
  December 31,2010
    
    
    2009(UNAUDITED)
    
    
    (UNAUDITED)Assets:Real estate, net
    
    $
    75,228,842
    
    
    $
    77,625,485Cash and cash equivalents
    
    
    12,047
    
    
    
    15,817Intangible assets, net
    
    
    3,975,025
    
    
    
    4,181,211Other assets, net
    
    
    374,271
    
    
    
    274,498Total assets
    
    $
    79,590,185
    
    
    $
    82,097,011Liabilities and Members Equity:Liabilities:Non-recourse debt
    
    $
    28,701,137
    
    
    $
    29,000,000Below-market rent intangibles
    
    
    713,768
    
    
    
    738,123Accrued expenses
    
    
    322,724
    
    
    
    100,035Total liabilities
    
    
    29,737,629
    
    
    
    29,838,158Members Equity:Members equity
    
    
    40,300,503
    
    
    
    42,725,747Accumulated earnings
    
    
    9,552,053
    
    
    
    9,507,408Accumulated other comprehensive income
    
    
    
    
    
    
    25,698Total members equity
    
    
    49,852,556
    
    
    
    52,258,853Total liabilities and members equity
    
    $
    79,590,185
    
    
    $
    82,097,011
  CPA ® :17 2010 10-K 96




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##### Table of Contents



BPLAST LANDLORD (DE) LLC
 
 STATEMENTS OF INCOME
  Years ended December 31,2010
    
    
    2009
    
    
    2008(UNAUDITED)
    
    
    (UNAUDITED)RevenuesRental income
    
    $
    6,664,596
    
    
    $
    6,640,731
    
    
    $
    6,651,343Other operating income
    
    
    79
    
    
    
    2,411
    
    
    
    8,1986,664,675
    
    
    
    6,643,142
    
    
    
    6,659,541Operating ExpensesDepreciation and amortization
    
    
    (2,698,721
    )
    
    
    (2,811,881
    )
    
    
    (2,811,881
    )Property expense
    
    
    21,156
    
    
    
    (25,112
    )
    
    
    (19,753
    )General and administrative
    
    
    (2,899
    )
    
    
    (12,367
    )
    
    
    (300
    )(2,680,464
    )
    
    
    (2,849,360
    )
    
    
    (2,831,934
    )Other Income and ExpensesGain on extinguishment of debt
    
    
    
    
    
    
    6,511,723
    
    
    
    Interest expense
    
    
    (2,206,120
    )
    
    
    (2,208,476
    )
    
    
    (2,535,406
    )(2,206,120
    )
    
    
    4,303,247
    
    
    
    (2,535,406
    )Net income
    
    $
    1,778,091
    
    
    $
    8,097,029
    
    
    $
    1,292,201
  CPA ® :17 2010 10-K 97




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##### Table of Contents



BPLAST LANDLORD (DE) LLC
 
 STATEMENTS OF COMPREHENSIVE INCOME
 Years ended December 31,2010
    
    
    2009
    
    
    2008(UNAUDITED)
    
    
    (UNAUDITED)Net Income
    
    $
    1,778,091
    
    
    $
    8,097,029
    
    
    $
    1,292,201Other Comprehensive (Loss) IncomeChange in unrealized gain on derivative instrument
    
    
    (25,698
    )
    
    
    25,698
    
    
    
    Comprehensive Income
    
    $
    1,752,393
    
    
    $
    8,122,727
    
    
    $
    1,292,201
  CPA ® :17 2010 10-K 98




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##### Table of Contents



BPLAST LANDLORD (DE) LLC
 
 STATEMENTS OF MEMBERS EQUITY
   Managing
    
    
    Non-ManagingMember
    
    
    Members
    
    
    TotalBalance January 1, 2008
    
    $
    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 loss on derivative instruments
    
    
    128
    
    
    
    25,570
    
    
    
    25,698Balance December 31, 2009
    
    
    261,294
    
    
    
    51,997,559
    
    
    
    52,258,853Contributions
    
    
    1,897
    
    
    
    377,469
    
    
    
    379,366Distributions
    
    
    (22,690
    )
    
    
    (4,515,366
    )
    
    
    (4,538,056
    )Net income
    
    
    8,890
    
    
    
    1,769,201
    
    
    
    1,778,091Other comprehensive loss:Change in unrealized gain on derivative instruments
    
    
    (1,897
    )
    
    
    (23,801
    )
    
    
    (25,698
    )Balance December 31, 2010
    
    $
    247,494
    
    
    $
    49,605,062
    
    
    $
    49,852,556
  CPA ® :17 2010 10-K 99




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##### Table of Contents



BPLAST LANDLORD (DE) LLC
 
 STATEMENTS OF CASH FLOWS
  Years ended December 31,2010
    
    
    2009
    
    
    2008(UNAUDITED)
    
    
    (UNAUDITED)Cash Flows  Operating ActivitiesNet income
    
    $
    1,778,091
    
    
    $
    8,097,029
    
    
    $
    1,292,201Adjustments to net income:Depreciation and amortization, including intangible assets
and deferred financing costs
    
    
    2,698,474
    
    
    
    3,128,853
    
    
    
    2,829,232Gain on extinguishment of debt
    
    
    
    
    
    
    (6,511,723
    )
    
    
    Decrease (increase) in accounts receivable
    
    
    29,938
    
    
    
    147,589
    
    
    
    (197,548
    )Increase in prepaid rental income
    
    
    
    
    
    
    
    
    
    
    (563,945
    )Increase (decrease) in accrued expenses
    
    
    67,280
    
    
    
    (121,969
    )
    
    
    222,003Net cash provided by operating activities
    
    
    4,573,783
    
    
    
    4,739,779
    
    
    
    3,581,943Cash Flows  Investing ActivitiesAcquisition of real estate
    
    
    (120,000
    )
    
    
    
    
    
    
    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 (used in) provided by investing activities
    
    
    (120,000
    )
    
    
    156,000
    
    
    
    (36,000
    )Cash Flows  Financing ActivitiesDistributions to members
    
    
    (4,538,056
    )
    
    
    (5,233,696
    )
    
    
    (42,610,825
    )Contributions from members
    
    
    379,366
    
    
    
    4,250,443
    
    
    
    61,078Proceeds from non-recourse mortgage
    
    
    29,000,000
    
    
    
    29,000,000
    
    
    
    39,400,000Payment of mortgage principal
    
    
    (29,298,863
    )
    
    
    (32,559,346
    )
    
    
    (328,931
    )Payment of mortgage deposits and deferred financing costs,
net of deposits refunded
    
    
    
    
    
    
    (337,363
    )
    
    
    (67,265
    )Net cash used in financing activities
    
    
    (4,457,553
    )
    
    
    (4,879,962
    )
    
    
    (3,545,943
    )Net change in cash and cash equivalents
    
    
    (3,770
    )
    
    
    15,817
    
    
    
    Cash and cash equivalents, beginning of year
    
    
    15,817
    
    
    
    
    
    
    
    Cash and cash equivalents, end of year
    
    $
    12,047
    
    
    $
    15,817
    
    
    $
    Supplemental disclosure:Interest paid
    
    $
    2,137,290
    
    
    $
    2,036,252
    
    
    $
    2,295,320
  CPA ® :17 2010 10-K 100




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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
    Purchase Price Allocation
  CPA ® :17 2010 10-K 101




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##### Table of Contents



Notes to Financial Statements
    Cash and Cash Equivalents
  Other Assets
  Depreciation
  Impairments
  Derivative Instruments
  CPA ® :17 2010 10-K 102




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##### Table of Contents



Notes to Financial Statements
 Income Taxes
  Note 3. Real Estate
  2010
    
    
    2009(UNAUDITED)
    
    
    (UNAUDITED)Land (a)
    
    $
    4,770,000
    
    
    $
    4,650,000Buildings
    
    
    78,287,602
    
    
    
    78,287,60283,057,602
    
    
    
    82,937,602Less: Accumulated depreciation
    
    
    (7,828,760
    )
    
    
    (5,312,117
    )$
    75,228,842
    
    
    $
    77,625,485
 
 (a)
    
    In 2010, we purchased an adjoining parcel of land from the local utility company for $120,000
in order to restore parking spaces lost due to the installation of a substation in 2009, which
was built on land that we sold back to the tenant in 2009 for $120,000 as part of an
arrangement with the local utility company to construct a substation to improve service to the
tenant. Scheduled Future Minimum Rents
  Note 4. Intangible Assets, Net
   2010
    
    
    2009(UNAUDITED)
    
    
    (UNAUDITED)Lease intangiblesIn-place lease
    
    $
    3,873,697
    
    
    $
    3,873,697Tenant relationship
    
    
    258,273
    
    
    
    258,273Above-market rent
    
    
    513,275
    
    
    
    513,275Less: accumulated amortization
    
    
    (670,220
    )
    
    
    (464,034
    )$
    3,975,025
    
    
    $
    4,181,211Below-market rent
    
    $
    (791,853
    )
    
    $
    (791,853
    )Less: accumulated amortization
    
    
    78,085
    
    
    
    53,730$
    (713,768
    )
    
    $
    (738,123
    )
 CPA ® :17 2010 10-K 103




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##### Table of Contents



Notes to Financial Statements
  Note 5. Non-Recourse Debt
    Years ending December 31,
    
    Total(UNAUDITED)2011
    
    
    630,2122012
    
    
    664,2512013
    
    
    709,9992014
    
    
    753,7612015
    
    
    866,535Thereafter through 2020
    
    
    25,076,379Total
    
    $
    28,701,137
 Note 6. Fair Value Measurements
   CPA ® :17 2010 10-K 104




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##### Table of Contents



Notes to Financial Statements
  Fair Value Measurements at December 31, 2010 Using:(UNAUDITED)Quoted Prices inActive Markets for
    
    
    Significant Other
    
    
    UnobservableIdentical Assets
    
    
    Observable Inputs
    
    
    InputsDescription
    
    Total
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Assets:Derivative assets
    
    $
    1,104
    
    
    $
    
    
    
    $
    1,104
    
    
    $
    $
    1,104
    
    
    $
    
    
    
    $
    1,104
    
    
    $
    
 Fair Value Measurements at December 31, 2009 Using:(UNAUDITED)Quoted Prices inActive Markets for
    
    
    Significant Other
    
    
    UnobservableIdentical Assets
    
    
    Observable Inputs
    
    
    InputsDescription
    
    Total
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Assets:Derivative assets
    
    $
    49,501
    
    
    $
    
    
    
    $
    49,501
    
    
    $
    $
    49,501
    
    
    $
    
    
    
    $
    49,501
    
    
    $
    
   December 31, 2010
    
    
    December 31, 2009Carrying Value
    
    
    Fair Value
    
    
    Carrying Value
    
    
    Fair Value(UNAUDITED)
    
    
    (UNAUDITED)Debt
    
    $
    28,701,137
    
    
    $
    28,914,692
    
    
    $
    29,000,000
    
    
    $
    29,334,750
  Note 7. Risk Management and Use of Derivative Financial Instruments
 Risk Management
  Use of Derivative Financial Instruments
  CPA ® :17 2010 10-K 105




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##### Table of Contents



Notes to Financial Statements
 Interest Rate Cap
    Asset DerivativesFair Value at December 31,Derivatives Designated as Hedging Instruments
    
    Balance Sheet Location
    
    2010
    
    
    2009(UNAUDITED)
    
    
    (UNAUDITED)Interest rate cap (a)
    
    Other assets, net
    
    $
    1,104
    
    
    $
    49,501Total derivatives
    
    
    
    $
    1,104
    
    
    $
    49,501
 
 (a)
    
    At December 31, 2010, the existing interest rate cap with a fair value of $1,104 is no longer
designated as a hedging instrument as a result of the May 2010 fixed rate debt refinancing.  Amount of Gain (Loss)Recognized in OCIon Derivative(Effective Portion)Years ended December 31,Derivatives in Cash Flow Hedging Relationships
    
    2010
    
    
    2009(UNAUDITED)
    
    
    (UNAUDITED)Interest rate cap (a) (b)
    
    $
    
    
    
    $
    25,698Total
    
    $
    
    
    
    $
    25,698
 
 (a)
    
    During the year ended December 31, 2010, $0.1 million included in OCI was expensed as a
result of the interest rate cap that was no longer considered a hedging instrument subsequent
to the May 2010 fixed rate debt refinancing. During the years ended December 31, 2009 and
2008, no gains or losses were reclassified from OCI into income related to ineffective
portions of edging relationships or to amounts excluded from effectiveness testing.(b)
    
    We obtained this interest rate cap in March 2009. CPA ® :17 2010 10-K 106




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##### Table of Contents



Item 9.
    
    Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
  
 Item 9A.
    
    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 2010 10-K 107




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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.
  
  
 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,
2007
 CPA ® :17 2010 10-K 108




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##### Table of Contents



Exhibit No.
    
    Description
    
    Method of Filing10.1
    
    
    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, 2009
 CPA ® :17 2010 10-K 109




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##### Table of Contents



Exhibit No.
    
    Description
    
    Method of Filing10.8
    
    
    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, 200910.11
    
    
    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, 200910.15
    
    
    Sale and Purchase Agreement, dated as of December 13,
2010, by and among Corporate Property Associates 14
Incorporated and Corporate Property Associates 17-
Global Incorporated, on behalf of single purpose
entities to be formed for the purpose of acquiring
the properties
    
    Incorporated by
reference to Form
8-K filed on
December 14, 201021.1
    
    
    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 2010 10-K 110




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##### Table of Contents



SIGNATURES
  Corporate Property Associates 17  Global IncorporatedDate 3/18/2011
    By:
    /s/ Mark J. DeCesarisMark J. DeCesarisChief Financial Officer  Signature
    
    Title
    
    Date/s/ Wm. Polk Carey

Wm. Polk Carey
    
    Chairman of the Board and Director
    
    3/18/2011/s/ Trevor P. Bond

Trevor P. Bond
    
    Chief Executive Officer and Director 
(Principal
Executive Officer)
    
    3/18/2011/s/ Mark J. DeCesaris

Mark J. DeCesaris
    
    Chief Financial Officer 
(Principal
Financial Officer)
    
    3/18/2011/s/ Thomas J. Ridings, Jr.

Thomas J. Ridings, Jr.
    
    Chief Accounting Officer 
(Principal
Accounting Officer)
    
    3/18/2011/s/ Marshall E. Blume

Marshall E. Blume
    
    Director
    
    3/18/2011/s/ Elizabeth P. Munson

Elizabeth P. Munson
    
    Director
    
    3/18/2011/s/ Richard J. Pinola

Richard J. Pinola
    
    Director
    
    3/18/2011/s/ James D. Price

James D. Price
    
    Director
    
    3/18/2011
 CPA ® :17 2010 10-K 111