UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

þ		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

o		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 000-52891

CORPORATE PROPERTY ASSOCIATES 17 — GLOBAL INCORPORATED

(Exact name of registrant as specified in its charter)

Maryland		20-8429087
(State of incorporation)		(I.R.S. Employer Identification No.)
50 Rockefeller Plaza
New York, New York		10020
(Address of principal executive office)		(Zip Code)

Investor Relations (212) 492-8920
(212) 492-1100
(Registrant’s telephone numbers, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o		Accelerated filer o		Non-accelerated filer þ		Smaller reporting company o
				(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No þ

Registrant had 162,110,628 shares of common stock, $.001 par value, outstanding at May 9, 2011.

 

 

INDEX

		Page No.
PART I — FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Consolidated Balance Sheets			2
Consolidated Statements of Income			3
Consolidated Statements of Comprehensive Income (Loss)			4
Consolidated Statements of Equity			5
Consolidated Statements of Cash Flows			6
Notes to Consolidated Financial Statements			7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			20
Item 3. Quantitative and Qualitative Disclosures About Market Risk			32
Item 4. Controls and Procedures			34
PART II — OTHER INFORMATION
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			34
Item 6. Exhibits			35
Signatures			36
Exhibit 31.1
Exhibit 31.2
Exhibit 32

Forward Looking Statements

This Quarterly Report on Form 10-Q (the “Report”), including Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 2 of Part I of this Report, contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. It is important to note that our actual results could be materially different from those projected in such forward-looking statements. You should exercise caution in relying on forward-looking statements as they involve known and unknown risks, uncertainties and other factors that may materially affect our future results, performance, achievements or transactions. Information on factors which could impact actual results and cause them to differ from what is anticipated in the forward-looking statements contained herein is included in this report as well as in our other filings with the Securities and Exchange Commission (the “SEC”), including but not limited to those described in Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2010 as filed with the SEC on March 18, 2011 (the “2010 Annual Report”). We do not undertake to revise or update any forward-looking statements. Additionally, a description of our critical accounting estimates is included in the Management’s Discussion and Analysis of Financial Condition and Results of Operations section of our 2010 Annual Report. There has been no significant change in our critical accounting estimates.

CPA^®:17 Global 3/31/2011 10-Q — 1

PART I

Item 1.		Financial Statements

CORPORATE PROPERTY ASSOCIATES 17 — GLOBAL INCORPORATED

CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands, except share and per share amounts)

		March 31, 2011				December 31, 2010
Assets
Investments in real estate:
Real estate, at cost		$	1,073,316			$	930,404
Operating real estate, at cost			12,179				12,177
Accumulated depreciation			(22,527	)			(16,574	)
Net investments in properties			1,062,968				926,007
Net investments in direct financing leases			400,593				397,006
Real estate under construction			75,143				53,041
Equity investments in real estate			152,883				50,853
Net investments in real estate			1,691,587				1,426,907
Cash and cash equivalents			210,876				162,745
Intangible assets, net			270,911				252,078
Notes receivable			40,000				89,560
Other assets, net			62,883				56,965
Total assets		$	2,276,257			$	1,988,255
Liabilities and Equity
Liabilities:
Non-recourse and limited-recourse debt		$	769,469			$	667,478
Accounts payable, accrued expenses and other liabilities			11,657				14,719
Prepaid and deferred rental income			29,911				27,020
Due to affiliates			26,994				21,009
Distributions payable			24,234				21,520
Total liabilities			862,265				751,746
Commitments and contingencies (Note 10)
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; 161,003,481 and 143,231,953 shares issued, respectively			161				143
Additional paid-in capital			1,439,576				1,280,453
Distributions in excess of accumulated earnings			(105,245	)			(93,446	)
Accumulated other comprehensive income (loss)			18,658				(14,943	)
			1,353,150				1,172,207
Less, treasury stock at cost, 1,012,221 and 864,991 shares, respectively			(9,414	)			(8,044	)
Total CPA®:17 — Global shareholders’ equity			1,343,736				1,164,163
Noncontrolling interests			70,256				72,346
Total equity			1,413,992				1,236,509
Total liabilities and equity		$	2,276,257			$	1,988,255

See Notes to Consolidated Financial Statements.

CPA^®:17 Global 3/31/2011 10-Q — 2

CORPORATE PROPERTY ASSOCIATES 17 — GLOBAL INCORPORATED

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(in thousands, except share and per share amounts)

		Three Months Ended March 31,
		2011				2010
Revenues
Rental income		$	27,632			$	8,412
Interest income from direct financing leases			11,293				9,367
Other real estate income			853				—
Interest income on CMBS and notes receivable			2,219				517
Other operating income			551				124
			42,548				18,420
Expenses
Depreciation and amortization			(8,359	)			(2,332	)
General and administrative			(1,836	)			(977	)
Property expenses			(3,782	)			(1,195	)
Other real estate expenses			(484	)			—
			(14,461	)			(4,504	)
Other Income and Expenses
Income from equity investments in real estate			1,770				398
Other income and (expenses)			(679	)			(64	)
Other interest income			13				4
Interest expense			(12,176	)			(5,316	)
			(11,072	)			(4,978	)
Income before income taxes			17,015				8,938
(Provision for) benefit from income taxes			(367	)			468
Net Income			16,648				9,406
Less: Net income attributable to noncontrolling interests			(4,213	)			(3,283	)
Net Income Attributable to CPA®:17 — Global Shareholders		$	12,435			$	6,123
Earnings Per Share
Net income attributable to CPA®:17 — Global shareholders		$	0.08			$	0.07
Weighted Average Shares Outstanding			151,599,433				87,261,461
Distributions Declared Per Share		$	0.1600			$	0.1600

See Notes to Consolidated Financial Statements.

CPA^®:17 Global 3/31/2011 10-Q — 3

CORPORATE PROPERTY ASSOCIATES 17 — GLOBAL INCORPORATED

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
(in thousands)

		Three Months Ended March 31,
		2011				2010
Net Income		$	16,648			$	9,406
Other Comprehensive Income (Loss):
Foreign currency translation adjustments			37,378				(9,643	)
Change in unrealized gain (loss) on derivative instruments			(3,118	)			(1,490	)
			34,260				(11,133	)
Comprehensive income (loss)			50,908				(1,727	)
Amounts Attributable to Noncontrolling Interests:
Net income			(4,213	)			(3,283	)
Foreign currency translation adjustments			(635	)			638
Change in unrealized (gain) loss on derivative instruments			(24	)			523
Comprehensive income attributable to noncontrolling interests			(4,872	)			(2,122	)
Comprehensive Income (Loss) Attributable to CPA®:17 — Global Shareholders		$	46,036			$	(3,849	)

See Notes to Consolidated Financial Statements.

CPA^®:17 Global 3/31/2011 10-Q — 4

CORPORATE PROPERTY ASSOCIATES 17 — GLOBAL INCORPORATED

CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED)
For the three months ended March 31, 2011 and the year ended December 31, 2010
(in thousands, except share amounts)

						CPA®:17 — Global Shareholders
														Distributions				Accumulated								Total
		Total								Additional				in Excess of				Other								CPA®:17 —
		Outstanding				Common				Paid-In				Accumulated				Comprehensive				Treasury				Global				Noncontrolling
		Shares				Stock				Capital				Earnings				Income (Loss)				Stock				Shareholders				Interests				Total
Balance at January 1, 2010			79,886,568			$	82			$	718,057			$	(53,118	)		$	(4,902	)		$	(2,314	)		$	657,805			$	71,332			$	729,137
Shares issued, net of offering costs			62,643,431				60				557,835																557,895								557,895
Shares issued to affiliates			453,121				1				4,561																4,562								4,562
Contributions from noncontrolling interests																															412				412
Distributions 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				45,787
Other comprehensive loss:
Foreign currency translation adjustments																			(6,660	)							(6,660	)			(778	)			(7,438	)
Change in unrealized loss on derivative instruments																			(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
Shares issued, net of offering costs			17,528,956				17				156,697																156,714								156,714
Shares issued to affiliates			242,572				1				2,426																2,427								2,427
Contributions from noncontrolling interests																															1,138				1,138
Distributions declared ($0.1600 per share)															(24,234	)											(24,234	)							(24,234	)
Distributions to noncontrolling interests																															(8,100	)			(8,100	)
Net income															12,435												12,435				4,213				16,648
Other comprehensive income:
Foreign currency translation adjustments																			36,743								36,743				635				37,378
Change in unrealized loss on derivative instruments																			(3,142	)							(3,142	)			24				(3,118	)
Repurchase of shares			(147,230	)																			(1,370	)			(1,370	)							(1,370	)
Balance at March 31, 2011			159,991,260			$	161			$	1,439,576			$	(105,245	)		$	18,658			$	(9,414	)		$	1,343,736			$	70,256			$	1,413,992

See Notes to Consolidated Financial Statements.

CPA^®:17 Global 3/31/2011 10-Q — 5

CORPORATE PROPERTY ASSOCIATES 17 — GLOBAL INCORPORATED

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)

		Three Months Ended March 31,
		2011				2010
Cash Flows — Operating Activities
Net income		$	16,648			$	9,406
Adjustments to net income:
Depreciation and amortization, including intangible assets			9,847				2,334
Straight-line rent adjustments and amortization of rent-related intangibles			585				(1,157	)
Settlement of derivative liability			(4,469	)			—
Income from equity investment in real estate in excess of distributions received			(259	)			(56	)
Issuance of shares to affiliate in satisfaction of fees due			2,426				617
Realized loss on foreign currency transactions and other, net			43				—
Unrealized loss on foreign currency transactions			636				65
Decrease (increase) in accounts receivable and prepaid expenses			926				(587	)
(Decrease) increase in accounts payable and accrued expenses			(2,192	)			841
(Increase) decrease in prepaid and deferred rental income			(496	)			3,287
Increase in due to affiliates			4,579				2,015
Change in other operating assets and liabilities, net			(1,870	)			(1,256	)
Net cash provided by operating activities			26,404				15,509
Cash Flows — Investing Activities
Distributions received from equity investments in real estate in excess of equity income			80,753				332
Acquisitions of real estate and direct financing leases and other capital expenditures (a)			(149,163	)			(147,311	)
Contributions to equity investments in real estate (a)			(172,439	)			(60	)
VAT paid in connection with acquisitions in real estate			(3,542	)			(7,488	)
VAT refunded in connection with acquisitions in real estate			4,728				6,346
Proceeds from repayment of notes receivable			49,560				7,000
Investment in securities			(1,250	)			—
Funds released from escrow			7,407				455
Funds placed in escrow			(5,666	)			(2,334	)
Payment of deferred acquisition fees to an affiliate			(4,513	)			(1,133	)
Net cash used in investing activities			(194,125	)			(144,193	)
Cash Flows — Financing Activities
Distributions paid			(21,520	)			(11,675	)
Contributions from noncontrolling interests			1,138				—
Distributions to noncontrolling interests			(8,100	)			(2,394	)
Proceeds from non-recourse and limited recourse debt financing			92,166				71,678
Scheduled payments of non-recourse and limited recourse debt			(2,779	)			(1,357	)
Payment of mortgage deposits, net of deposits refunded			(6,683	)			(1,662	)
Proceeds from issuance of shares, net of offering costs			156,714				130,055
Funds released from escrow			(393	)			(219	)
Funds placed in escrow			—				2,191
Purchase of treasury stock			(1,370	)			(984	)
Net cash provided by financing activities			209,173				185,633
Change in Cash and Cash Equivalents During the Period
Effect of exchange rate changes on cash			6,679				(646	)
Net decrease in cash and cash equivalents			48,131				56,303
Cash and cash equivalents, beginning of period			162,745				281,554
Cash and cash equivalents, end of period		$	210,876			$	337,857

Noncash investing and financing activities:

See Notes to Consolidated Financial Statements.

CPA^®:17 Global 3/31/2011 10-Q — 6

CORPORATE PROPERTY ASSOCIATES 17 — GLOBAL INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 1. Organization and Offering

Organization

Corporate Property Associates 17 — Global Incorporated (“CPA^®:17 — Global” and, together with its consolidated subsidiaries, “we”, “us” or “our”) is a publicly owned, non-listed real estate investment trust (“REIT”) that invests primarily in commercial properties leased to companies domestically and internationally. As a REIT, we are not subject to United States (“U.S.”) federal income taxation as long as we satisfy certain requirements, principally relating to the nature of our income, the level of our distributions and other factors. We earn revenue principally by leasing the properties we own to single corporate tenants, on a triple-net leased basis, which requires the tenant to pay substantially all of the costs associated with operating and maintaining the property. Revenue is subject to fluctuation because of the timing of new lease transactions, lease terminations, lease expirations, contractual rent adjustments, tenant defaults and sales of properties. At March 31, 2011, our portfolio was comprised of our full or partial ownership interests in 154 fully-occupied properties, substantially all of which were triple-net leased to 37 tenants, and totaled approximately 19 million square feet (on a pro rata basis). We were formed in 2007 and conduct substantially all of our investment activities and own all of our assets through our operating partnership, CPA:17 Limited Partnership. We are a general partner and a limited partner and own approximately a 99.985% capital interest in our operating partnership. W. P. Carey Holdings, LLC (“Carey Holdings”), a subsidiary of W. P. Carey & Co. LLC (“WPC”), holds a special general partner interest in the operating partnership. We refer to WPC, together with certain of its subsidiaries and Carey Holdings, as the “advisor.”

In February 2007, WPC purchased 22,222 shares of our common stock for $0.2 million and was admitted as our initial shareholder. WPC purchased its shares at $9.00 per share, net of commissions and fees, which would have otherwise been payable to Carey Financial, LLC (“Carey Financial”), our sales agent and a subsidiary of WPC. In addition, in July 2008, we received a capital contribution from the advisor of $0.3 million.

Public Offering

In November 2007, our registration statement on Form S-11 (File No. 333-140842), covering an initial public offering of up to 200,000,000 shares of common stock at $10.00 per share, was declared effective by the SEC under the Securities Act of 1933, as amended (the “Securities Act”). The registration statement also covered the offering of up to 50,000,000 shares of common stock at $9.50 pursuant to our distribution reinvestment and stock purchase plan. Our shares were initially being offered on a “best efforts” basis by Carey Financial and selected other dealers. We commenced our initial public offering in late December 2007. Since inception through the termination of our initial public offering on April 7, 2011, we raised a total of more than $1.5 billion.

In October 2010, we filed a registration statement on Form S-11 (File No. 333-170225) with the SEC for a continuous public offering of up to $1.0 billion of common stock, which was declared effective by the SEC on April 7, 2011, terminating our initial public offering. The registration statement also covers the offering of up to 50,000,000 shares of common stock at $9.50 pursuant to our distribution reinvestment and stock purchase plan. We refer to the continuous public offering as the “follow-on offering.” There can be no assurance that we will successfully sell the full number of shares registered.

We intend to use the net proceeds of these offerings to acquire, own and manage a portfolio of commercial properties leased to a diversified group of companies primarily on a single tenant net lease basis.

Note 2. Basis of Presentation

Our interim consolidated financial statements have been prepared, without audit, in accordance with the instructions to Form 10-Q and, therefore, do not necessarily include all information and footnotes necessary for a fair statement of our consolidated financial position, results of operations and cash flows in accordance with accounting principles generally accepted in the U.S. (“GAAP”).

In the opinion of management, the unaudited financial information for the interim periods presented in this Report reflects all normal and recurring adjustments necessary for a fair statement of results of operations, financial position and cash flows. Our interim consolidated financial statements should be read in conjunction with our audited consolidated financial statements and accompanying notes for the year ended December 31, 2010, which are included in our 2010 Annual Report, as certain disclosures that would substantially duplicate those contained in the audited consolidated financial statements have not been included in this Report. Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year.

CPA^®:17 Global 3/31/2011 10-Q — 7

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in our consolidated financial statements and the accompanying notes. Actual results could differ from those estimates.

Basis of Consolidation

The consolidated financial statements reflect all of our accounts, including those of our majority-owned and/or controlled subsidiaries. The portion of equity in a subsidiary that is not attributable, directly or indirectly, to us is presented as noncontrolling interests. All significant intercompany accounts and transactions have been eliminated.

Because we conduct substantially all of our investment activities and own all of our assets through the operating partnership, substantially all of the assets and liabilities presented in our consolidated balance sheets are attributable to the operating partnership. The following table presents amounts included in the consolidated balance sheets that are not attributable to the operating partnership but rather are attributable to CPA^®:17 — Global, the primary beneficiary of the operating partnership (in thousands):

		March 31, 2011				December 31, 2010
Assets:
Cash and cash equivalents not attributable to consolidated Variable Interest Entity (“VIE”)		$	20,880			$	2,502
Other assets, net not attributable to consolidated VIE			3,973				1,038
Total assets not attributable to consolidated VIE		$	24,853			$	3,540
Liabilities:
Due to affiliates not attributable to consolidated VIE		$	(598	)		$	(408	)
Distributions payable not attributable to consolidated VIE			(24,234	)			(21,520	)
Total liabilities not attributable to consolidated VIE		$	(24,832	)		$	(21,928	)

Because we generally utilize non-recourse debt, our maximum exposure to the operating partnership is limited to the equity we have in the operating partnership. We have not provided financial or other support to the operating partnership, and there were no guarantees or other commitments from third parties that would affect the value of or risk related to our interest in this entity.

Information about International Geographic Areas

At March 31, 2011, our international investments were comprised of investments in Europe. The following tables present information about these investments (in thousands):

		Three Months Ended March 31,
		2011				2010
Revenues		$	12,364			$	4,030
		March 31, 2011				December 31, 2010
Net investments in real estate		$	655,821			$	515,653

CPA^®:17 Global 3/31/2011 10-Q — 8

Note 3. Agreements and Transactions with Related Parties

We have an advisory agreement with the advisor whereby the advisor performs certain services for us for a fee. The agreement that is currently in effect was recently renewed for an additional year pursuant to its terms effective October 1, 2010. Under the terms of this agreement, the advisor structures and negotiates the purchase and sale of investments and debt placement transactions for us, for which we pay the advisor structuring and subordinated disposition fees, and manages our day-to-day operations, for which we pay the advisor asset management fees and certain cash distributions. In addition, we reimburse the advisor for organization and offering costs incurred in connection with our offering and for certain administrative duties performed on our behalf. We also have certain agreements with joint ventures. The following table presents a summary of fees we paid and expenses we reimbursed to the advisor in accordance with the advisory agreement (in thousands):

		Three Months Ended March 31,
		2011				2010
Amounts included in operating expenses:
Asset management fees (a)		$	2,850			$	939
Distributions of available cash			1,815				506
Personnel reimbursements (b)			388				160
Office rent reimbursements (b)			74				33
		$	5,127			$	1,638
Transaction fees incurred:
Current acquisition fees (c)		$	7,929			$	3,744
Deferred acquisition fees (c) (d)			6,351				2,995
		$	14,280			$	6,739

Unpaid transaction fees:		March 31, 2011				December 31, 2010
Unpaid deferred acquisition fees		$	21,588			$	19,809

Organization and Offering Expenses

The total costs paid by the advisor and its affiliates in connection with the organization and offering of our securities were $13.3 million from inception through March 31, 2011, of which $12.8 million had been reimbursed as of March 31, 2011.

Joint Ventures and Other Transactions with Affiliates

On December 13, 2010 we agreed to purchase three properties from one of our affiliates, Corporate Property Associates 14 Incorporated (“CPA^®:14”), for an aggregate purchase price of $57.4 million, plus the assumption of approximately $153.9 million of indebtedness (Note 13).

We own interests in entities ranging from 30% to 85%, with the remaining interests held by affiliates. We consolidate certain of these entities and account for the remainder under the equity method of accounting.

CPA^®:17 Global 3/31/2011 10-Q — 9

Note 4. Net Investments in Properties and Real Estate Under Construction

Real Estate

Real estate, which consists of land and buildings leased to others under operating leases, at cost, is summarized as follows (in thousands):

		March 31, 2011				December 31, 2010
Land		$	273,635			$	242,145
Buildings			799,681				688,259
Less: Accumulated depreciation			(22,114	)			(16,274	)
		$	1,051,202			$	914,130

Operating Real Estate

Operating real estate, which consists of our hotel operations, at cost, is summarized as follows (in thousands):

		March 31, 2011				December 31, 2010
Land		$	1,330			$	1,330
Buildings			10,485				10,483
Furniture, Fixtures & Equipment			364				364
Less: Accumulated depreciation			(413	)			(300	)
		$	11,766			$	11,877

Acquisitions of Real Estate

During the three months ended March 31, 2011, we entered into three domestic investments, which were classified as operating leases, at a total cost of $134.3 million, including net lease intangible assets totaling $16.6 million (see Other below). In connection with these investments, which we deemed to be real estate asset acquisitions under current authoritative accounting guidance, we capitalized acquisition-related costs and fees totaling $6.4 million.

Real Estate Under Construction

During 2011, we entered into three build-to-suit projects located in the U.S. with Dollar General Corp. as part of an estimated $40.0 million platform build-to-suit program covering up to 40 facilities, for a total cost of up to $2.9 million on these three projects, based on estimated construction costs at the respective dates of acquisition. In connection with these investments, which were deemed to be real estate acquisitions under current authoritative accounting guidance, we capitalized acquisition-related costs and fees totaling $0.2 million. Costs incurred and capitalized on our build-to-suit projects through March 31, 2011 totaled $75.1 million, including $0.9 million on projects entered into during 2011, and have been included as Real estate under construction in the consolidated balance sheet.

At December 31, 2010, Real estate under construction consisted of $53.0 million in costs incurred and/or capitalized on several build-to-suit projects located in the U.S. and Poland.

Other

In connection with our acquisition of properties, we have recorded net lease intangibles of $269.5 million, including $16.6 million of net lease intangibles acquired in connection with our investment activity during the three months ended March 31, 2011. These intangible assets and liabilities are being amortized over periods ranging from 14 years to 40 years. In-place lease, tenant relationship and above-market rent intangibles are included in Intangible assets, net in the consolidated financial statements. Below-market rent intangibles are included in Prepaid and deferred rental income. Amortization of below-market and above-market rent intangibles is recorded as an adjustment to Lease revenues in the consolidated financial statements, while amortization of in-place lease and tenant relationship intangibles is included in Depreciation and amortization. Net amortization of intangibles, including the effect of foreign currency translation, was $3.3 million and $0.6 million for the three months ended March 31, 2011 and 2010, respectively.

CPA^®:17 Global 3/31/2011 10-Q — 10

Note 5. Finance Receivables

Assets representing rights to receive money on demand or at fixed or determinable dates are referred to as finance receivables. Our finance receivable portfolios consist of our Net investments in direct financing leases and notes receivable. Operating leases are not included in finance receivables as such amounts are not recognized as an asset in the consolidated balance sheets.

Notes Receivable

In December 2010, we provided financing of $40.0 million to China Alliance Properties Limited, a subsidiary of Shanghai Forte Land, Co., Ltd (“Forte”). The financing was provided through a collateralized loan guaranteed by Forte’s parent company, Fosun International Limited, and has an interest rate of 11% and matures in December 2015. At March 31, 2011 and December 31, 2010, the balance of the note receivable was $40.0 million.

During the first quarter of 2011, our participation in the limited-recourse mortgage loan related to our New York Times venture was repaid in full in connection with the refinancing of this loan (Note 9). At December 31, 2010, the balance of the note receivable was $49.6 million.

Credit Quality of Finance Receivables

We generally seek investments in facilities that are critical to the tenant’s business and that we believe have a low risk of tenant defaults. At March 31, 2011 and December 31, 2010, none of the balances of our finance receivables were past due and we had not established any allowances for credit losses. Additionally, there have been no modifications of finance receivables. We evaluate the credit quality of our tenant receivables utilizing an internal 5-point credit rating scale, with 1 representing the highest credit quality and 5 representing the lowest. The credit quality evaluation of our tenant receivables was last updated in the first quarter of 2011.

A summary of our tenant receivables and notes receivable by internal credit quality rating at March 31, 2011 and December 31, 2010 is as follows (in thousands):

Internal Credit		Number of		Net Investments in Direct Financing Leases								Number of		Notes Receivable
Quality Indicator		Tenants		March 31, 2011				December 31, 2010				Obligors		March 31, 2011				December 31, 2010
1		—		$	—			$	—			—		$	—			$	—
2		4			101,680				100,255			1			40,000				40,000
3		2			272,465				271,734			1			—				49,560
4		1			26,448				25,017			—			—				—
5		—			—				—			—			—				—
				$	400,593			$	397,006					$	40,000			$	89,560

Note 6. Equity Investments in Real Estate

We own interests in single-tenant net leased properties leased to corporations through noncontrolling interests in (i) partnerships and limited liability companies that we do not control but over which we exercise significant influence, and (ii) tenants-in-common subject to common control. Generally, the underlying investments are jointly owned with affiliates. We account for these investments under the equity method of accounting (i.e., at cost, increased or decreased by our share of earnings or losses, less distributions, plus contributions and other adjustments required by equity method accounting, such as basis differences from other-than-temporary impairments).

CPA^®:17 Global 3/31/2011 10-Q — 11

The following table sets forth our ownership interests in our equity investments in real estate and their respective carrying values (dollars in thousands):

		Ownership
		Interest at				Carrying Value at
Lessee		March 31, 2011				March 31, 2011				December 31, 2010
C1000 B.V. (a) (b)			85	%		$	100,028			$	—
Tesco plc (a)			49	%			21,128				19,903
Berry Plastics Corporation			50	%			20,258				20,330
Eroski Sociedad Cooperativa - Mallorca (a)			30	%			11,469				10,620
						$	152,883			$	50,853

The following tables present combined summarized financial information of our venture properties. Amounts provided are the total amounts attributable to the venture properties and do not represent our proportionate share (in thousands):

		March 31, 2011				December 31, 2010
Assets		$	429,307			$	203,989
Liabilities			(182,010	)			(79,786	)
Partners’/members’ equity		$	247,297			$	124,203
		Three Months Ended March 31,
		2011				2010
Revenue		$	7,498			$	3,594
Expenses			(4,770	)			(2,970	)
Net income		$	2,728			$	624

We recognized income from equity investments in real estate of $1.8 million and $0.4 million for the three months ended March 31, 2011 and 2010, respectively. Income (loss) from equity investments in real estate represents our proportionate share of the income or loss of the ventures as well as certain depreciation and amortization adjustments related to other-than-temporary impairment charges.

Acquisition of Equity Investment

In January 2011, we and our affiliate, Corporate Property Associates 15 Incorporated (“CPA^®:15”), acquired a venture as a tenancy-in-common in which we and CPA^®:15 hold interests of 85% and 15%, respectively, and account for under the equity method of accounting. The venture purchased properties from C1000 B.V. (“C-1000”), a leading Dutch supermarket chain, for $207.6 million. Our share of the purchase price was $176.5 million, which was funded in part by a $90.0 million short-term loan from the advisor that was repaid in full during the first quarter of 2011. The venture capitalized acquisition-related costs and fees totaling $12.5 million, of which our share was $10.6 million. In March 2011, the venture obtained non-recourse financing totaling $98.3 million, which bears interest at a variable rate equal to the three-month Euro inter-bank offered rate (“Euribor”) plus 2% and matures in March 2013. Amounts above are based upon the exchange rate of the Euro at the date of acquisition and financing, respectively.

Note 7. Fair Value Measurements

Under current authoritative accounting guidance for fair value measurements, the fair value of an asset is defined as the exit price, which is the amount that would either be received when an asset is sold or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance establishes a three-tier fair value hierarchy based on the inputs used in measuring fair value. These tiers are: Level 1, for which quoted market prices for identical instruments are available in active markets, such as money market funds, equity securities and U.S. Treasury securities; Level 2, for which there are inputs other than quoted prices included within Level 1 that are observable for the instrument, such as certain derivative instruments including interest rate caps and swaps; and Level 3, for which little or no market data exists, therefore requiring us to develop our own assumptions, such as certain securities.

CPA^®:17 Global 3/31/2011 10-Q — 12

Items Measured at Fair Value on a Recurring Basis

The following methods and assumptions were used to estimate the fair value of each class of financial instrument:

Money Market Funds — Our money market funds consisted of government securities and U.S. treasury bills. These funds were classified as Level 1 because we used quoted prices from active markets to determine their fair values.

Derivative Assets and Liabilities — Our derivative assets and liabilities are comprised of interest rate swaps, interest rate caps and foreign currency exchange contracts. These derivative instruments were measured at fair value using readily observable market inputs, such as quotations on interest rates and foreign currency exchange rates. Our derivative instruments were classified as Level 2 because these instruments are custom, over-the-counter contracts with various bank counterparties that are not traded in an active market.

The following tables set forth our assets and liabilities that were accounted for at fair value on a recurring basis at March 31, 2011 and December 31, 2010 (in thousands):

						Fair Value Measurements at March 31, 2011 Using:
						Quoted Prices in
						Active Markets for				Significant Other				Unobservable
						Identical Assets				Observable Inputs				Inputs
Description		Total				(Level 1)				(Level 2)				(Level 3)
Assets:
Money market funds		$	6,000			$	6,000			$	—			$	—
Derivative assets			964				—				964				—
		$	6,964			$	6,000			$	964			$	—
Liabilities:
Derivative liabilities		$	(1,127	)		$	—			$	(1,127	)		$	—

						Fair Value Measurements at December 31, 2010 Using:
						Quoted Prices in
						Active Markets for				Significant Other				Unobservable
						Identical Assets				Observable Inputs				Inputs
Description		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	)		$	—

Assets and liabilities presented above exclude assets and liabilities owned by unconsolidated ventures.

We did not have any transfers into or out of Level 1, Level 2 and Level 3 measurements during the three months ended March 31, 2011 and 2010. Gains and losses (realized and unrealized) included in earnings are reported in Other income and (expenses) in the consolidated financial statements.

CPA^®:17 Global 3/31/2011 10-Q — 13

Our other financial instruments had the following carrying values and fair values (in thousands):

		March 31, 2011								December 31, 2010
		Carrying Value				Fair Value				Carrying Value				Fair Value
Debt		$	769,469			$	776,872			$	667,478			$	674,225
CMBS (a)			3,792				7,319				3,797				4,677

We determined the estimated fair value of our debt instruments using a discounted cash flow model with rates that take into account the credit of the tenants and interest rate risk. We estimated that our other financial assets and liabilities (excluding net investments in direct financing leases) had fair values that approximated their carrying values at March 31, 2011 and December 31, 2010.

Items Measured at Fair Value on a Non-Recurring Basis

We perform an assessment, when required, of the value of certain of our real estate investments in accordance with current authoritative accounting guidance. As part of that assessment, we determined the valuation of these assets using widely accepted valuation techniques, including expected discounted cash flows or an income capitalization approach which considers prevailing market capitalization rates. We reviewed each investment based on the highest and best use of the investment and market participation assumptions. We determined that the significant inputs used to value these investments fall within Level 3. We did not recognize any impairment charges during the three months ended March 31, 2011 or 2010. The valuation of real estate is subject to significant judgment and actual results may differ materially if market conditions or the underlying assumptions change.

None of our other assets or liabilities was measured on a fair value basis for the three months ended March 31, 2011.

Note 8. Risk Management and Use of Derivative Financial Instruments

Risk Management

In the normal course of our ongoing business operations, we encounter economic risk. There are three main components of economic risk: interest rate risk, credit risk and market risk. We are subject to interest rate risk on our interest-bearing assets and liabilities and our CMBS investments. Credit risk is the risk of default on our operations and tenants’ inability or unwillingness to make contractually required payments. Market risk includes changes in the value of the properties and related loans as well as changes in the value of our CMBS investments due to changes in interest rates or other market factors. In addition, we own investments in Europe and are subject to the risks associated with changing foreign currency exchange rates.

Foreign Currency Exchange

We are exposed to foreign currency exchange rate movements in the Euro and British Pound Sterling. We manage foreign currency exchange rate movements by generally placing both our debt obligation to the lender and the tenant’s rental obligation to us in the same currency, but we are subject to foreign currency exchange rate movements to the extent of the difference in the timing and amount of the rental obligation and the debt service. We may also face challenges with repatriating cash from our foreign investments. We may encounter instances where it is difficult to repatriate cash because of jurisdictional restrictions or because repatriating cash may result in current or future tax liabilities.

Use of Derivative Financial Instruments

When we use derivative instruments, it is generally to reduce our exposure to fluctuations in interest rates. We have not entered, and do not plan to enter into financial instruments for trading or speculative purposes. In addition to derivative instruments that we entered into on our own behalf, we may also be a party to derivative instruments that are embedded in other contracts, and we may own common stock warrants, granted to us by lessees when structuring lease transactions, that are considered to be derivative instruments. The primary risks related to our use of derivative instruments are that a counterparty to a hedging arrangement could default on its obligation or that the credit quality of the counterparty may be downgraded to such an extent that it impairs our ability to sell or assign our side of the hedging transaction. While we seek to mitigate these risks by entering into hedging arrangements with counterparties that are large financial institutions that we deem to be creditworthy, it is possible that our hedging transactions, which are intended to limit losses, could adversely affect our earnings. Furthermore, if we terminate a hedging arrangement, we may be obligated to pay certain costs, such as transaction or breakage fees. We have established policies and procedures for risk assessment and the approval, reporting and monitoring of derivative financial instrument activities.

CPA^®:17 Global 3/31/2011 10-Q — 14

We measure derivative instruments at fair value and record them as assets or liabilities, depending on our rights or obligations under the applicable derivative contract. Derivatives that are not designated as hedges must be adjusted to fair value through earnings. If a derivative is designated as a hedge, depending on the nature of the hedge, changes in the fair value of the derivative will either be offset against the change in fair value of the hedged asset, liability, or firm commitment through earnings or recognized in Other comprehensive income (“OCI”) until the hedged item is recognized in earnings. The ineffective portion of a derivative’s change in fair value is immediately recognized in earnings.

The following table sets forth certain information regarding our derivative instruments at March 31, 2011 and December 31, 2010 (in thousands):

Derivatives Designated				Asset Derivatives Fair Value at								Liabilities Derivatives Fair Value at
as Hedging Instruments		Balance Sheet Location		March 31, 2011				December 31, 2010				March 31, 2011				December 31, 2010
Interest rate cap		Other assets, net		$	730			$	733			$	—			$	—
Interest rate swap		Other assets, net			234				18				—				—
Interest rate swap		Accounts payable, accrued expenses and other liabilities			—				—				(801	)			(1,134	)
Foreign currency forward contract		Accounts payable, accrued expenses and other liabilities			—				—				(326	)			(1,081	)
				$	964			$	751			$	(1,127	)		$	(2,215	)

At March 31, 2011 and December 31, 2010, we also had an embedded credit derivative that is not designated as a hedging instrument. This instrument had a fair value of $0 at both March 31, 2011 and December 31, 2010.

The following tables present the impact of derivative instruments on the consolidated financial statements (in thousands):

		Amount of Gain (Loss) Recognized
		in OCI on Derivatives
		(Effective Portion)
		Three Months Ended March 31,
Derivatives in Cash Flow Hedging Relationships		2011				2010
Interest rate cap (a)		$	53			$	(1,163	)
Interest rate swaps			543				(308	)
Foreign currency forward contract (b)			(3,714	)			—
Total		$	(3,118	)		$	(1,471	)

See below for information on our purposes for entering into derivative instruments, including those not designated as hedging instruments, and for information on derivative instruments owned by unconsolidated ventures, which are excluded from the tables above.

CPA^®:17 Global 3/31/2011 10-Q — 15

Interest Rate Swaps and Caps

We are exposed to the impact of interest rate changes primarily through our borrowing activities. To limit this exposure, we attempt to obtain mortgage financing on a long-term, fixed-rate basis. However, from time to time, we or our venture partners may obtain variable-rate non-recourse mortgage loans and, as a result, may enter into interest rate swap agreements or interest rate cap agreements with counterparties. Interest rate swaps, which effectively convert the variable-rate debt service obligations of the loan to a fixed rate, are agreements in which one party exchanges a stream of interest payments for a counterparty’s stream of cash flow over a specific period. The notional, or face, amount on which the swaps are based is not exchanged. Interest rate caps limit the effective borrowing rate of variable-rate debt obligations while allowing participants to share in downward shifts in interest rates. Our objective in using these derivatives is to limit our exposure to interest rate movements.

The interest rate swaps and interest rate cap derivative instruments that we had outstanding at March 31, 2011 were designated as cash flow hedges and are summarized as follows (dollars in thousands):

				Notional				Effective				Effective		Expiration		Fair Value at
		Type		Amount				Interest Rate				Date		Date		March 31, 2011
3-Month LIBOR		Interest rate cap (a)		$	125,000				2.8	%		3/2011		8/2014		$	730
3-Month LIBOR		“Pay-fixed” swap			27,285				6.6	%		1/2010		12/2019			(786	)
3-Month Euribor (b)		“Pay-fixed” swap			8,542				5.8	%		7/2010		11/2017			234
1-Month LIBOR		“Pay-fixed” swap			4,200				6.0	%		1/2011		1/2021			(15	)
																$	163

Foreign Currency Contracts

We enter into foreign currency forward contracts to hedge certain of our foreign currency cash flow exposures. A foreign currency forward contract is a commitment to deliver a certain amount of currency at a certain price on a specific date in the future. By entering into this instrument, we are locked into a future currency exchange rate, which limits our exposure to the movement in foreign currency exchange rates.

In December 2010, we entered into a foreign currency forward contract with a total notional amount of $63.4 million, based on the exchange rate of the Euro at March 31, 2011. This contract fixed the exchange rate of the Euro to $1.31047 with a maturity date of March 2011. This contract was subsequently extended to July 2011.

Embedded Credit Derivative

In connection with a venture in Germany in which we and an affiliate have 67% and 33% interests, respectively, and which we consolidate, the venture obtained non-recourse mortgage financing for which the interest rate has both fixed and variable components. In connection with providing the financing, the lender entered into an interest rate swap agreement on its own behalf through which the fixed interest rate component on the financing was converted into a variable interest rate instrument. Through the venture, we have the right, at our sole discretion, to prepay this debt at any time and to participate in any realized gain or loss on the interest rate swap at that time. This participation right is deemed to be an embedded credit derivative. The derivative had an estimated fair value of $0 at both March 31, 2011 and December 31, 2010. This derivative did not generate gains or losses during the three-month periods ended March 31, 2011 and 2010.

Other

Amounts reported in OCI related to derivatives will be reclassified to interest expense as interest payments are made on our variable-rate debt. At March 31, 2011, we estimate that $1.6 million, inclusive of amounts attributable to noncontrolling interests of $0.2 million, will be reclassified as interest expense during the next twelve months.

Some of the agreements we have with our derivative counterparties contain certain credit contingent provisions that could result in a declaration of default against us regarding our derivative obligations if we either default or are capable of being declared in default on certain of our indebtedness. At March 31, 2011, we had not been declared in default on any of our derivative obligations. The estimated fair value of our derivatives that were in a net liability position was $0.9 million and $2.2 million at March 31, 2011 and December 31, 2010, respectively, which included accrued interest but excluded any adjustment for nonperformance risk. If we had breached any of these provisions at March 31, 2011 or December 31, 2010, we could have been required to settle our obligations under these agreements at their aggregate termination value of $1.4 million or $2.5 million, respectively.

CPA^®:17 Global 3/31/2011 10-Q — 16

Portfolio Concentration Risk

Concentrations of credit risk arise when a group of tenants is engaged in similar business activities or is subject to similar economic risks or conditions that could cause them to default on their lease obligations to us. We regularly monitor our portfolio to assess potential concentrations of credit risk. Our portfolio contains concentrations in excess of 10% of current contractual annualized lease revenues in certain areas, as described below. The percentages in the paragraph below represent our directly-owned real estate properties and do not include the pro rata shares of our equity investments.

At March 31, 2011, the majority of our directly-owned real estate properties were located in the U.S. (66%), with New York (16%) representing the only significant domestic concentration based on percentage of our annualized contractual minimum base rent for the first quarter of 2011. All of our directly-owned international properties were located in Europe, with Spain (13%) and Croatia (11%) representing the only significant concentrations based on percentage of our annualized contractual minimum base rent for the first quarter of 2011. At March 31, 2011, The New York Times Company was the only tenant representing a significant concentration of credit risk, with 16% of our total current annualized contractual minimum base rent (inclusive of amounts attributable to noncontrolling interests). At March 31, 2011, our directly-owned real estate properties contained concentrations in the following asset types: warehouse and distribution (38%), office (34%), industrial (15%) and retail (10%); and in the following tenant industries: retail stores (23%), media — printing and publishing (22%) and beverages, food and tobacco (13%).

There were no significant concentrations, individually or in the aggregate, related to our unconsolidated ventures.

Note 9. Non-Recourse and Limited Recourse Debt

During the first three months of 2011, we obtained non-recourse and limited-recourse mortgage financing totaling $208.2 million at a weighted average annual interest rate and term of 4.1% and 8.4 years, respectively. Of the total financing,

•

$125.0 million related to the March 2009 New York Times transaction, inclusive of amounts attributable to noncontrolling interests of $68.8 million. In March 2011, we refinanced the limited-recourse mortgage loan obtained in August 2009 with an outstanding balance of $116.0 million at the date of refinancing, with new limited-recourse financing that matures in April 2018, with the option to extend to April 2019. The financing bears interest at an annual interest rate equal to the London inter-bank offered rate (“LIBOR”) plus 2.5%. The interest rate has been capped at 4.0% through the use of an interest rate cap designated as a cash flow hedge, which matures in March 2016 (Note 8);

•

$75.1 million related to two domestic investments acquired during 2011; and

•

$8.1 million related to two domestic investments acquired during 2010.

Amounts above are based upon the exchange rate of the Euro at the date of financing where applicable.

Non-recourse and limited-recourse debt consists of mortgage notes payable, which are collateralized by an assignment of real property and direct financing leases with an aggregate carrying value of $1.2 billion and $1.1 billion at March 31, 2011 and December 31, 2010, respectively. Our mortgage notes payable bore interest at fixed annual rates ranging from 4.5% to 8.0% and variable annual rates ranging from 2.8% to 6.6%, with maturity dates ranging from 2014 to 2028 at both March 31, 2011 and December 31, 2010, respectively.

CPA^®:17 Global 3/31/2011 10-Q — 17

Scheduled debt principal payments during each of the next five calendar years following March 31, 2011 and thereafter are as follows (in thousands):

		Total
2011 (remainder)		$	10,619
2012			15,424
2013			17,265
2014			18,528
2015			64,779
Thereafter through 2028			642,854
Total		$	769,469

Certain amounts in the table above are based on the applicable foreign currency exchange rate at March 31, 2011.

Note 10. Commitments and Contingencies

Various claims and lawsuits arising in the normal course of business are pending against us. The results of these proceedings are not expected to have a material adverse effect on our consolidated financial position or results of operations.

During December 2010, in connection with the proposed merger between two of our affiliates, CPA^®:14 and Corporate Property Associates 16 — Global (“CPA^®:16 — Global”), we entered into an agreement to purchase three properties from CPA^®:14 for an aggregate purchase price of $57.4 million, plus the assumption of approximately $153.9 million of related indebtedness. This merger closed on May 2, 2011 (Note 13).

Note 11. Income Taxes

We have elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended. We believe we have operated, and we intend to continue to operate, in a manner that allows us to continue to qualify as a REIT. Under the REIT operating structure, we are permitted to deduct distributions paid to our shareholders and generally will not be required to pay U.S. federal income taxes. Accordingly, no provision has been made for U.S. federal income taxes in the consolidated financial statements.

We conduct business in various states and municipalities within the U.S. and Europe and, as a result, we file income tax returns in the U.S. federal jurisdiction and various state and certain foreign jurisdictions.

We account for uncertain tax positions in accordance with current authoritative accounting guidance. We had unrecognized tax benefits of $0.3 million and $0.2 million at March 31, 2011 and December 31, 2010, respectively, that, if recognized, would have a favorable impact on our effective income tax rate in future periods. We recognize interest and penalties related to uncertain tax positions in income tax expense. At both March 31, 2011 and December 31, 2010, we had less than $0.1 million of accrued interest or penalties related to uncertain tax positions.

Our tax returns are subject to audit by taxing authorities. These audits can often take years to complete and settle. The tax years 2007 through 2011 remain open to examination by the major taxing jurisdictions to which we are subject.

During 2010, we elected to treat our corporate subsidiary that engages in hotel operations as a taxable REIT subsidiary (“TRS”). This subsidiary owns a hotel that is managed on our behalf by a third-party hotel management company. A TRS is subject to corporate federal income taxes, and we provide for income taxes in accordance with current authoritative accounting guidance. This subsidiary has recognized de minimus profit since inception.

CPA^®:17 Global 3/31/2011 10-Q — 18

Note 12. Pro Forma Financial Information

The following consolidated pro forma financial information has been presented as if the acquisitions that we made, and the new financing that we obtained, since January 1, 2010 had occurred on January 1, 2010 for the three months ended March 31, 2010. Acquisitions during the three months ended March 31, 2011 were not significant individually or in the aggregate. The pro forma financial information is not necessarily indicative of what the actual results would have been, nor does it purport to represent the results of operations for future periods.

(Dollars in thousands, except per share amounts):

		Three Months
		Ended
		March 31,
		2010
Pro forma total revenues		$	20,498
Pro forma net income (a)		$	10,700
Less: Net income attributable to noncontrolling interests			(3,283	)
Pro forma net income attributable to CPA®:17 — Global shareholders		$	7,417
Pro forma earnings per share (a):
Net income attributable to CPA®:17 — Global shareholders		$	0.08

The pro forma weighted average shares outstanding for the three months ended March 31, 2010 were determined as if all shares issued since our inception through March 31, 2010 were issued on January 1, 2010.

Note 13. Subsequent Events

In April 2011, we entered into an investment in which we acquired four domestic industrial facilities for a total cost of approximately $51.0 million.

In April 2011, we obtained non-recourse mortgage financing totaling $24.5 million at a fixed interest rate of 6.4% and term of 10 years in connection with a domestic investment acquired in March 2010.

In connection with a merger between two of our affiliates, CPA^®:14 and CPA^®:16 — Global, which was completed on May 2, 2011, we purchased three properties from CPA^®:14 for an aggregate purchase price of $57.4 million, plus the assumption of approximately $153.9 million of related indebtedness.

CPA^®:17 Global 3/31/2011 10-Q — 19

Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations

Management’s discussion and analysis of financial condition and results of operations (“MD&A”) is intended to provide the reader with information that will assist in understanding our financial statements and the reasons for changes in certain key components of our financial statements from period to period. MD&A also provides the reader with our perspective on our financial position and liquidity, as well as certain other factors that may affect our future results. Our MD&A should be read in conjunction with our 2010 Annual Report.

Business Overview

We are a publicly owned, non-listed REIT that invests primarily in commercial properties leased to companies domestically and internationally. As a REIT, we are not subject to U.S. federal income taxation as long as we satisfy certain requirements, principally relating to the nature of our income, the level of our distributions and other factors. We earn revenue principally by leasing the properties we own to single corporate tenants, primarily on a triple-net lease basis, which requires the tenant to pay substantially all of the costs associated with operating and maintaining the property. Revenue is subject to fluctuation because of the timing of new lease transactions, lease terminations, lease expirations, contractual rent adjustments, tenant defaults and sales of properties. We were formed in 2007 and are managed by the advisor.

Financial Highlights
(In thousands)

		Three Months Ended March 31,
		2011				2010
Total revenues		$	42,548			$	18,420
Net income attributable to CPA®:17 — Global shareholders			12,435				6,123
Cash flow from operating activities			26,404				15,509
Distributions paid			(21,520	)			(11,675	)
Supplemental financial measures:
Funds from operations — as adjusted (AFFO)		$	20,203			$	7,919
Adjusted cash flow from operating activities			22,483				9,147

We consider the performance metrics listed above, including certain supplemental metrics that are not defined by GAAP (“non-GAAP”) such as Funds from operations — as adjusted, or AFFO, and Adjusted cash flow from operating activities, to be important measures in the evaluation of our results of operations, liquidity and capital resources. We evaluate our results of operations with a primary focus on the ability to generate cash flow necessary to meet our objectives of funding distributions to shareholders. See Supplemental Financial Measures below for our definition of these measures and reconciliations to their most directly comparable GAAP measure.

Total revenues, Net income attributable to CPA^®:17 — Global shareholders and Cash flow from operating activities all increased during the current year period as compared to the same period in 2010, reflecting our investment activity during 2010 and 2011.

Our daily cash distribution for the first quarter of 2011 was $0.0017778 per share and was paid on April 15, 2011 to shareholders of record as of the close of business on each day during the first quarter, or $0.64 per share on an annualized basis. Our board of directors has declared that our daily cash distribution for the second quarter of 2011 will be $0.0017857 per share, or $0.65 per share on an annualized basis, and will be paid on or about July 15, 2011 to shareholders of record as of the close of business on each day during the second quarter.

For the three months ended March 31, 2011 as compared to the same period in 2010, our AFFO supplemental measure increased, primarily as a result of our investment activity during 2010 and 2011. For the three months ended March 31, 2011 as compared to the same period in 2010, our adjusted cash flow from operating activities supplemental measure reflected increased cash flow from operating activities, as described above.

CPA^®:17 Global 3/31/2011 10-Q — 20

Current Trends

We are impacted by macro-economic environmental factors, the capital markets and general conditions in the commercial real estate market, both in the U.S. and globally. As of the date of this Report, we have seen signs of modest improvement in the global economy following the significant distress experienced in 2008 and 2009. Our experience during the three months ended March 31, 2011 reflected strong investment volume, as well as an improved financing and fundraising environment. While these factors reflect favorably on our business, the pace of the economic recovery remains slow, and our business remains dependent on the speed and strength of the recovery, which cannot be predicted at this time. Nevertheless, as of the date of this Report, the impact of current financial and economic trends on our business, and our response to those trends, is presented below.

Fundraising

Fundraising trends for non-listed REITs generally reflect an increase in average monthly volume during the three months ended March 31, 2011 as compared to the prior year period. We have made a concerted effort to broaden our distribution channels and are seeing a greater portion of our fundraising come from an expanded network of broker-dealers as a result of these efforts. We continue to witness increased competition for investment dollars.

In October 2010, we filed a registration statement with the SEC for the follow-on offering of up to an additional $1.0 billion of common stock, which was declared effective by the SEC on April 7, 2011 and, as a result, our initial public offering terminated. There can be no assurance that we will sell the full number of shares registered. Through the termination of our initial public offering, we raised $163.8 million during 2011 and raised more than $1.5 billion since beginning fundraising in December 2007.

Capital Markets

Capital markets conditions continue to exhibit evidence of post-crisis improvement, including new issuances of CMBS debt. Capital inflows to both commercial real estate debt and equity markets have helped increase the availability of mortgage financing and asset prices continue to recover from their credit crisis lows. The availability of financing for secured transactions has expanded; however, lenders remain cautious and continue to employ conservative underwriting standards. Commercial real estate capitalization rates remain low compared to credit crisis highs, especially for higher-quality assets or assets leased to tenants with strong credit. The improvement in financing conditions combined with a stabilization of prices for high quality assets has helped to increase transaction activity, however increased competition from both public and private investors continues.

Investment Opportunities

Our ability to complete investments fluctuates based on the pricing and availability of transactions and the pricing and availability of financing, among other factors.

As a result of the recent improving economic conditions and increasing seller optimism, we have seen an increased number of investment opportunities that we believe will allow us to enter into transactions on favorable terms. Although capitalization rates have remained compressed over the past few quarters compared to their credit crisis highs, we believe that the investment environment remains attractive. We believe that the significant amount of debt that remains outstanding in the marketplace, which will need to be refinanced over the next several years, will provide attractive investment opportunities for net lease investors such as ourselves. To the extent that these trends continue, we believe that our investment volume will benefit. However, we have recently seen an increasing level of competition for investments, both domestically and in Europe, and further capital inflows into the marketplace could put additional pressure on the returns that we can generate from our investments and our willingness and ability to execute transactions. However, we expect to continue to expand our ability to source deals in other markets.

We entered into investments totaling approximately $313.6 million during the three months ended March 31, 2011, representing an increase of $164.5 million over the prior year period, and based on current conditions we expect that we will be able to continue to take advantage of the investment opportunities we are seeing in both the U.S. and Europe through the near term. Investment volume reflects international investments of 56% (on a pro rata basis) during the first three months of 2011. While this fluctuates from quarter to quarter, we currently expect that international transactions will continue to form a significant portion of our investments, although the relative portion of international investments in any given period will vary.

Financing Conditions

We have recently seen a gradual improvement in both the credit and real estate financing markets. We continue to see an increase in the number of lenders for both domestic and international investments as market conditions improve compared to prior years. During the three months ended March 31, 2011, we obtained non-recourse mortgage financing totaling $235.5 million (on a pro rata basis).

CPA^®:17 Global 3/31/2011 10-Q — 21

General Economic Environment

Foreign Exchange Rates

We have foreign investments and, as a result, are subject to risk from the effects of exchange rate movements. Our results of foreign operations benefit from a weaker U.S. dollar and are adversely affected by a stronger U.S. dollar relative to foreign currencies. During the three months ended March 31, 2011, the U.S. dollar weakened in relation to the Euro as evidenced by the change in the end-of-period conversion rate of the Euro, which increased by 6% to $1.4099 at March 31, 2011 from $1.3253 at December 31, 2010. Investments denominated in the Euro accounted for approximately 30% of our annualized contractual minimum base rent for the three months ended March 31, 2011. This weakening had a favorable impact on our balance sheet at March 31, 2011 as compared to our balance sheet at December 31, 2010. During the three months ended March 31, 2011, the average conversion rate for the U.S. dollar in relation to the Euro strengthened by 1% in comparison to the same period in 2010. A significant unhedged decline in the value of the Euro could have a material negative impact on our net asset values, future results, financial position and cash flows.

Real Estate Sector

As noted above, the commercial real estate market is impacted by a variety of macro-economic factors, including but not limited to growth in gross domestic product, unemployment, interest rates, inflation, and demographics. Despite improvements in expectations since the beginning of the credit crisis, these macro-economic factors have persisted, negatively impacting commercial real estate market fundamentals, which has resulted in higher vacancies, lower rental rates, and lower demand for vacant space. However, recently there have been some indications of stabilization in asset values and slight improvements in occupancy rates. We are chiefly affected by changes in the appraised values of our properties, tenant defaults, inflation, lease expirations, and occupancy rates.

Credit Quality of Tenants

As a net lease investor, we are exposed to credit risk within our tenant portfolio, which can reduce our results of operations and cash flow from operations if our tenants are unable to pay their rent. Tenants experiencing financial difficulties may become delinquent on their rent and/or default on their leases and, if they file for bankruptcy protection, may reject our lease in bankruptcy court, resulting in reduced cash flow, which may negatively impact net asset values and require us to incur impairment charges. Even where a default has not occurred and a tenant is continuing to make the required lease payments, we may restructure or renew leases on less favorable terms, or the tenant’s credit profile may deteriorate, which could affect the value of the leased asset and could in turn require us to incur impairment charges.

As of the date of this Report, we have one tenant, Waldaschaff Automotive GmbH, in our portfolio operating under administrative protection who has been paying rent to us, albeit at a significantly reduced rate, while new lease terms are being negotiated. The continued improvements in general business conditions have favorably impacted the overall credit quality of our tenants.

To mitigate credit risk, we have historically looked to invest in assets that we believe are critically important to our tenant’s operations and have attempted to diversify our portfolio by tenant, tenant industry and geography. We also monitor tenant performance through review of rent delinquencies as a precursor to a potential default, meetings with tenant management and review of tenants’ financial statements and compliance with any financial covenants. When necessary, our asset management process includes restructuring transactions to meet the evolving needs of tenants, re-leasing properties, refinancing debt and selling properties, as well as protecting our rights when tenants default or enter into bankruptcy.

Inflation

Our leases generally have rent adjustments that are either fixed or based on formulas indexed to changes in the consumer price index (“CPI”) or other similar indices for the jurisdiction in which the property is located. Because these rent adjustments may be calculated based on changes in the CPI over a multi-year period, changes in inflation rates can have a delayed impact on our results of operations. Despite recent signs of inflationary pressure, we continue to expect that rent increases will be significantly lower in coming years as a result of the current historically low inflation rates in the U.S. and the Euro zone.

CPA^®:17 Global 3/31/2011 10-Q — 22

Lease Expirations and Occupancy

Our leases are in their early stages, with no significant leases scheduled to expire or renew in the near term. The advisor actively manages our real estate portfolio and begins discussing options with tenants in advance of the scheduled lease expiration. In certain cases, we may obtain lease renewals from our tenants; however, tenants may elect to move out at the end of their term, or may elect to exercise purchase options, if any, in their leases. In cases where tenants elect not to renew, we may seek replacement tenants or try to sell the property. Our investments were fully occupied at both March 31, 2011 and December 31, 2010, reflecting a portfolio of primarily new tenants.

Proposed Accounting Changes

The International Accounting Standards Board and the Financial Accounting Standards Board have issued an Exposure Draft on a joint proposal that would dramatically transform lease accounting from the existing model. These changes would impact most companies but are particularly applicable to those that are significant users of real estate. The proposal outlines a completely new model for accounting by lessees, whereby their rights and obligations under all leases, existing and new, would be capitalized and recorded on the balance sheet. For some companies, the new accounting guidance may influence whether or not, or the extent to which, they enter into the type of sale-leaseback transactions in which we specialize. At this time, the proposed guidance has not been finalized and as such we are unable to determine whether this proposal will have a material impact on our business.

Results of Operations

We were formed in 2007 and have a limited operating history. The results of operations presented below for the three months ended March 31, 2011 are not expected to be representative of future results because we anticipate that our asset base will increase substantially as we continue to invest capital. As our asset base increases, we expect that property-related revenues and expenses, as well as general and administrative expenses and other revenues and expenses, will increase.

We are dependent upon proceeds received from our follow-on offering to conduct our proposed activities. The capital required to make investments will be obtained from the follow-on offering and from any mortgage indebtedness that we may incur in connection with our investment activity.

The following table presents the components of our lease revenue (in thousands):

		Three Months Ended March 31,
		2011				2010
Rental income		$	27,632			$	8,412
Interest income from direct financing leases			11,293				9,367
		$	38,925			$	17,779

CPA^®:17 Global 3/31/2011 10-Q — 23

The following table sets forth the net lease revenues (i.e., rental income and interest income from direct financing leases) that we earned from lease obligations through our direct ownership of real estate (in thousands):

		Three Months Ended March 31,
Lessee (Date Acquired or Placed in Service)		2011				2010
The New York Times Company (3/2009) (a)		$	7,238			$	6,659
General Parts Inc., Golden State Supply LLC, Straus-Frank Enterprises LLC, General Parts Distribution LLC and Worldpac Inc., collectively “CARQUEST” (12/2010)			5,216				—
Agrokor d.d. (12/2010, 4/2010) (b)			3,822				—
Eroski Sociedad Cooperativa (6/2010, 2/2010, 12/2009) (b)			2,662				1,398
Terminal Freezers, LLC (1/2011)			2,608				—
DTS Distribuidora de Television Ditital SA (12/2010) (b)			2,255				—
LifeTime Fitness, Inc. (9/2008)			1,679				1,680
Flint River Services, LLC (11/2010)			1,272				—
Angelica Corporation (3/2010)			1,250				99
Frontier Spinning Mills, Inc. (12/2008) (a)			1,111				1,118
McKesson Corporation (formerly US Oncology, Inc.)(12/2009)			1,047				1,047
Actebis Peacock GmbH (7/2008) (a) (b)			1,005				1,008
JP Morgan Chase Bank, National Association and AT&T Wireless Services (5/2010)			983				—
Kronos Products, Inc. (1/2010)			956				995
Laureate Education, Inc. (7/2008)			710				709
Mori Seiki USA, Inc. (12/2009)			703				703
TDG Limited (5/2010, 4/2010) (b)			701				—
Sabre Communications Corporation and Cellxion, LLC (6/2010, 8/2008)			688				630
National Express Limited (12/2009) (b)			517				485
Berry Plastics Corporation (3/2010) (c)			514				7
Wagon Automotive Nagold GmbH (8/2008) (a)(b)(d)			501				555
Other (b)			1,487				686
		$	38,925			$	17,779

CPA^®:17 Global 3/31/2011 10-Q — 24

We recognize income from equity investments in real estate, of which lease revenues are a significant component. The following table sets forth the net lease revenues earned by ventures. Amounts provided are the total amounts attributable to the ventures and do not represent our proportionate share (dollars in thousands):

		Ownership
		Interest at				Three Months Ended March 31,
Lessee (Date Acquired)		March 31, 2011				2011				2010
C1000 B.V. (1/2011) (a) (b)			85	%		$	3,109			$	—
Tesco plc (7/2009) (a)			49	%			1,884				1,870
Berry Plastics Corporation (12/2007) (c)			50	%			1,675				1,697
Eroski Sociedad Cooperativa — Mallorca (6/2010) (a)			30	%			794				—
						$	7,462			$	3,567

Lease Revenues

Our net leases generally have rent adjustments based on formulas indexed to changes in the CPI or other similar indices for the jurisdiction in which the property is located, sales overrides or other periodic increases, which are intended to increase lease revenues in the future. We own international investments and, therefore, lease revenues from these investments are subject to fluctuations in exchange rate movements in foreign currencies.

For the three months ended March 31, 2011 as compared to the same period in 2010, lease revenues increased by $21.1 million, primarily due to our investment activity during 2010 and 2011.

Other Real Estate Operations

Other real estate operations represents the results of operations (revenues and operating expenses) of our domestic hotel venture, which we acquired in May 2010.

Our results of operations from our hotel venture reflected income and expenses of $0.9 million and $0.5 million, respectively, for the three months ended March 31, 2011.

Interest Income on CMBS and Notes Receivable

For the three months ended March 31, 2011 as compared to the same period in 2010, interest income on CMBS investments and notes receivable increased by $1.7 million as a result of interest income recognized during 2011 related to notes receivables acquired during the second half of 2010.

Depreciation and Amortization

For the three months ended March 31, 2011 as compared to the same period in 2010, depreciation and amortization increased by $6.0 million, as a result of investments we entered into during 2010 and 2011.

CPA^®:17 Global 3/31/2011 10-Q — 25

General and Administrative

For the three months ended March 31, 2011 as compared to the same period in 2010, general and administrative expense increased by $0.9 million, primarily due to increases in professional fees of $0.5 million and management expenses of $0.2 million. Professional fees include legal, accounting and investor-related expenses incurred in the normal course of business. Management expenses include our reimbursements to the advisor for the allocated costs of personnel and overhead in providing management of our day-to-day operations, including accounting services, shareholder services, corporate management, and property management and operations.

Property Expenses

For the three months ended March 31, 2011 as compared to the same period in 2010, property expense increased by $2.6 million, primarily due to increases in asset management fees of $1.9 million and reimbursable tenant costs of $0.5 million. Asset management fees increased as a result of 2010 and 2011 investment volume. Reimbursable tenant costs are recorded as both revenue and expenses and therefore have no impact on our results of operations.

Income from Equity Investments in Real Estate

Income from equity investments in real estate represents our proportionate share of net income or net loss (revenue less expenses) from investments entered into with affiliates in which we have a noncontrolling interest but over which we exercise significant influence. Under current accounting guidance for investments in unconsolidated ventures, we are required to periodically compare an investment’s carrying value to its estimated fair value and recognize an impairment charge to the extent that the carrying value exceeds fair value.

For the three months ended March 31, 2011 as compared to the same period in 2010, income from equity investments in real estate increased by $1.4 million due to our investments in the C1000 venture in January 2011 and the Eroski — Mallorca venture in June 2010, which contributed income of $1.1 million and $0.2 million, respectively, during the first three months of 2011.

Interest Expense

For the three months ended March 31, 2011 as compared to the same period in 2010, interest expense increased by $6.9 million primarily as a result of mortgage financing obtained in connection with our investment activity during 2011 and 2010 which contributed additional expense of $5.8 million as compared to the same period in 2010, as well as an increase in the amortization of deferred financing costs primarily associated with the refinancing of the New York Times debt.

(Provision for) Benefit from Income Taxes

For the three months ended March 31, 2011, we recognized a provision for income taxes of $0.4 million as compared with a benefit from income taxes of $0.5 million during the same period in 2010, primarily due to international investments entered into during 2011. Additionally, during the first quarter of 2010, we revised our estimates of income taxes payable on our investments in Germany based on actual returns filed during the period, which resulted in a reduction in income taxes payable.

Net Income Attributable to CPA^®:17 — Global Shareholders

For the three months ended March 31, 2011 as compared to the same period in 2010, the resulting net income attributable to CPA^®:17 — Global shareholders increased by $6.3 million.

Funds from Operations — as Adjusted (AFFO)

For the three months ended March 31, 2011 as compared to the same period in 2010, AFFO increased by $12.3 million, primarily as a result of the aforementioned increases in results of operations generated from our investment activity. AFFO is a non-GAAP measure that we use to evaluate our business. For a definition of AFFO and reconciliation to net income attributable to CPA^®:17 — Global shareholders, see Supplemental Financial Measures below.

Subsequent Events

In April 2011, we entered into an investment in which we acquired four domestic industrial facilities for a total cost of approximately $51.0 million.

In April 2011, we obtained non-recourse mortgage financing totaling $24.5 million at a fixed interest rate of 6.4% and term of 10 years in connection with a domestic investment acquired in March 2010.

CPA^®:17 Global 3/31/2011 10-Q — 26

In connection with a merger between two of our affiliates, CPA^®:14 and CPA^®:16 — Global, which was completed on May 2, 2011, we purchased three properties from CPA^®:14 for an aggregate purchase price of $57.4 million, plus the assumption of approximately $153.9 million of related indebtedness.

Financial Condition

Sources and Uses of Cash During the Period

Our initial public offering terminated on April 7, 2011, the date which the registration statement for our follow-on offering was declared effective by the SEC. We expect to continue to invest the proceeds of our offerings in a diversified portfolio of income-producing commercial properties and other real estate related assets. Once we have fully invested these proceeds, we expect that our primary source of operating cash flow will be cash flow generated from our net leases and other real estate related assets. We expect that these cash flows will fluctuate period to period due to a number of factors, which may include, among other things, the timing of purchases and sales of real estate, the timing of proceeds from non-recourse mortgage loans and receipt of lease revenues, the advisor’s annual election to receive fees in restricted shares of our common stock or cash, changes in foreign currency exchange rates and the timing and characterization of distributions received from equity investments in real estate. Despite this fluctuation, we believe our net leases and other real estate related assets will generate sufficient cash from operations and from equity distributions in excess of equity income in real estate to meet our short-term and long-term liquidity needs. However, until we have fully invested the proceeds of our offerings, we may use a portion of the offering proceeds to fund our operating activities and distributions to shareholders (see Financing Activities below). Our sources and uses of cash during the period are described below.

Operating Activities

During the three months ended March 31, 2011, we used cash flows provided by operating activities of $26.4 million to fund cash distributions to shareholders of $21.5 million, which excludes the $10.7 million in dividends that were reinvested by shareholders through our distribution reinvestment and share purchase plan. For 2011, the advisor elected to continue to receive its asset management fees in restricted shares of our common stock, and as a result, we paid asset management fees of $2.4 million through the issuance of restricted stock rather than in cash.

Investing Activities

Our investing activities are generally comprised of real estate-related transactions (purchases and sales), payment of deferred acquisition fees to the advisor and capitalized property-related costs. During the three months ended March 31, 2011, we used $172.4 million to acquire an 85% interest in a venture that acquired an equity investment in C-1000 and $149.2 million to acquire three consolidated investments and to fund construction costs on several build-to-suit projects. We received $80.8 million in distributions from our equity investments in real estate in excess of cumulative equity income and $49.6 million in proceeds from the full repayment of our participation in the limited-recourse mortgage loan related to our New York Times venture in connection with the refinancing of the loan. Funds totaling $5.7 million and $7.4 million were invested in and released from, respectively, lender-held investment accounts. We paid foreign value added taxes, or VAT, totaling $3.5 million during the three months ended March 31, 2011 in connection with several international investments and recovered $4.7 million during the period. Payments of deferred acquisition fees to the advisor totaled $4.5 million.

Financing Activities

For the three months ended March 31, 2011, our financing activities primarily consisted of the receipt of $158.4 million in net proceeds from our initial public offering, which terminated on April 7, 2011 upon the effectiveness of our follow-on offering, and a total of $92.2 million in proceeds from mortgage financings related to recent investment activity. We also paid distributions of $8.1 million to affiliates who hold noncontrolling interests in various entities with us and made scheduled principal installments on mortgage loans of $2.8 million.

Our objectives are to generate sufficient cash flow over time to provide shareholders with increasing distributions and to seek investments with potential for capital appreciation throughout varying economic cycles. We have funded a portion of our cash distributions to date using net proceeds from our initial public offering and we may do so in the future, particularly until we substantially invest the net offering proceeds. In determining our distribution policy during the periods we are raising funds and investing capital, we place primary emphasis on projections of cash flow from operations, together with equity distributions in excess of equity income in real estate, from our investments, rather than on historical results of operations (though these and other factors may be a part of our consideration). In setting a distribution rate, we thus focus primarily on expected returns from those investments we have already made, as well as our anticipated rate of future investment, to assess the sustainability of a particular distribution rate over time.

CPA^®:17 Global 3/31/2011 10-Q — 27

As described in our 2010 Annual Report, we maintain a quarterly redemption plan pursuant to which we may, at the discretion of our board of directors, redeem shares of our common stock from shareholders seeking liquidity. For the three months ended March 31, 2011, we received requests to redeem 147,230 shares of our common stock pursuant to our redemption plan, and we used $1.4 million to fulfill these requests at a price per share of $9.30. We funded share redemptions during the three months ended March 31, 2011 from the proceeds of the sale of shares of our common stock pursuant to our distribution reinvestment and stock purchase plan.

Liquidity would be affected adversely by unanticipated costs, lower-than-anticipated fundraising and greater-than-anticipated operating expenses. To the extent that our cash reserves are insufficient to satisfy our cash requirements, additional funds may be provided from cash generated from operations or through short-term borrowings. In addition, we may incur indebtedness in connection with the acquisition of any property, refinancing the debt thereon, arranging for the leveraging of any previously unfinanced property, or reinvesting the proceeds of financings or refinancings in additional properties.

Adjusted Cash Flow from Operating Activities

Adjusted cash flow from operating activities is a non-GAAP measure that we use to evaluate our business. For a definition of adjusted cash flow from operating activities and reconciliation to cash flow from operating activities, see Supplemental Financial Measures below.

Our adjusted cash flow from operating activities for the three months ended March 31, 2011 and 2010 was $22.5 million and $9.1 million, respectively. This increase was primarily due to increases in property-level cash flow generated from our investment activity during 2010 and 2011.

Summary of Financing

The table below summarizes our non-recourse and limited-recourse long-term debt (dollars in thousands):

		March 31, 2011				December 31, 2010
Balance
Fixed rate		$	605,210			$	516,103
Variable rate (a)			164,259				151,375
Total		$	769,469			$	667,478
Percent of total debt
Fixed rate			79	%			77	%
Variable rate (a)			21	%			23	%
			100	%			100	%
Weighted average interest rate at end of period
Fixed rate			6.2	%			6.2	%
Variable rate (a)			3.7	%			5.4	%

Cash Resources

At March 31, 2011, our cash resources consisted of cash and cash equivalents totaling $210.9 million, which reflects the uninvested proceeds of our initial public offering. Of our total cash and cash equivalents at March 31, 2011, $29.7 million, at then-current exchange rates, was held in foreign bank accounts, but we could be subject to restrictions or significant costs should we decide to repatriate these amounts. We also had unleveraged properties that had an aggregate carrying value of $337.7 million, although there can be no assurance that we would be able to obtain financing for these properties. In April 2011, the SEC declared our registration statement effective for a continuous public offering of up to $1.0 billion of common stock. We began fundraising under this follow-on offering in April 2011. Our cash resources can be used to fund future investments as well as for working capital needs and other commitments.

CPA^®:17 Global 3/31/2011 10-Q — 28

Cash Requirements

During the next twelve months, we expect that cash payments will include paying distributions to our shareholders and to our affiliates who hold noncontrolling interests in entities we control, making scheduled mortgage loan principal payments (neither we nor our venture partners have any balloon payments on our mortgage loan obligations until 2013), reimbursing the advisor for costs incurred on our behalf and paying normal recurring operating expenses. We expect to continue to use funds raised from our initial public offering and follow-on offering to invest in new properties.

Impact of Asset Purchase from Affiliate

On May 2, 2011, we purchased three properties from CPA^®:14, using existing cash resources and proceeds from our public offering, for an aggregate purchase price of $57.4 million, plus the assumption of approximately $153.9 million of related indebtedness. We currently estimate that the properties acquired from CPA^®:14 will generate annual equity income of approximately $5.7 million based upon actual income from equity investments in real estate recognized by CPA^®:14 during 2010.

Off-Balance Sheet Arrangements and Contractual Obligations

The table below summarizes our debt, off-balance sheet arrangements and other contractual obligations at March 31, 2011 and the effect that these arrangements and obligations are expected to have on our liquidity and cash flow in the specified future periods (in thousands):

						Less than												More than
		Total				1 Year				1-3 Years				3-5 Years				5 years
Non-recourse and limited-recourse debt — principal (a)		$	770,442			$	14,065			$	33,499			$	83,316			$	639,562
Deferred acquisition fees			21,588				11,008				10,580				—				—
Interest on borrowings and deferred acquisition fees			327,945				43,776				84,347				78,155				121,667
Build-to-suit commitment and other capital commitments(b)			22,845				22,845				—				—				—
Lending commitment (c)			48,978				2,821				46,157				—				—
Operating and other lease commitments (d)			1,933				323				652				642				316
		$	1,193,731			$	94,838			$	175,235			$	162,113			$	761,545