UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended September 30, 2012

or

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

For the transition period from                     to                    

Commission File Number: 000-52891

CORPORATE PROPERTY ASSOCIATES 17 – GLOBAL INCORPORATED

(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 x No £

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 x No £

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 £	Accelerated filer £
Non-accelerated filer x	Smaller reporting company £
(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 £ No x

Registrant has 281,194,720 shares of common stock, $0.001 par value, outstanding at November 2, 2012.

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	8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	27
Item 3. Quantitative and Qualitative Disclosures About Market Risk	43
Item 4. Controls and Procedures	45
PART II — OTHER INFORMATION
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	45
Item 6. Exhibits	46
Signatures	47

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, 2011 as filed with the SEC on March 22, 2012 (the “2011 Annual Report”) and the risk factors in our prospectus dated April 30, 2012 as filed with the SEC on May 2, 2012. 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 2011 Annual Report. There has been no significant change in our critical accounting estimates.

CPA®:17 – Global 9/30/2012 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)

	September 30, 2012			December 31, 2011
Assets
Investments in real estate:
Real estate, at cost	$	1,871,917		$	1,500,151
Operating real estate, at cost	203,138			178,141
Accumulated depreciation	(72,339		)	(43,267		)
Net investments in properties	2,002,716			1,635,025
Real estate under construction	9,863			90,176
Net investments in direct financing leases	474,277			462,505
Equity investments in real estate	184,848			187,067
Net investments in real estate	2,671,704			2,374,773
Notes receivable	70,000			70,000
Cash and cash equivalents	490,675			180,726
Intangible assets, net	411,805			334,137
Other assets, net	107,037			86,176
Total assets	$	3,751,221		$	3,045,812
Liabilities and Equity
Liabilities:
Non-recourse and limited-recourse debt	$	1,357,730		$	1,154,254
Accounts payable, accrued expenses and other liabilities	76,208			48,035
Prepaid and deferred rental income	76,957			56,029
Due to affiliates	21,755			27,747
Distributions payable	41,712			32,288
Total liabilities	1,574,362			1,318,353
Commitments and contingencies (Note 11)
Equity:
CPA®:17 — Global stockholders’ 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; 269,241,629 and 207,975,777 shares issued and outstanding, respectively	269			208
Additional paid-in capital	2,412,095			1,863,227
Distributions in excess of accumulated earnings	(234,737		)	(157,062		)
Accumulated other comprehensive loss	(44,341		)	(32,601		)
Less, treasury stock at cost, 3,121,640 and 1,826,959 shares, respectively	(29,301		)	(17,104		)
Total CPA®:17 — Global stockholders’ equity	2,103,985			1,656,668
Noncontrolling interests	72,874			70,791
Total equity	2,176,859			1,727,459
Total liabilities and equity	$	3,751,221		$	3,045,812

See Notes to Consolidated Financial Statements.

CPA®:17 – Global 9/30/2012 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 September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Revenues
Rental income	$	44,288		$	29,393		$	127,253		$	85,401
Interest income from direct financing leases	13,189			12,762			40,003			36,319
Other operating income	817			623			2,634			2,133
Other interest income	1,560			1,217			4,781			5,173
Other real estate income	9,511			5,120			29,219			7,125
	69,365			49,115			203,890			136,151
Operating Expenses
Depreciation and amortization	(17,972		)	(11,654		)	(49,774		)	(28,999		)
General and administrative	(4,415		)	(4,673		)	(12,197		)	(10,871		)
Property expenses	(7,755		)	(4,815		)	(22,042		)	(13,221		)
Other real estate expenses	(5,765		)	(2,906		)	(17,775		)	(4,032		)
Impairment charges	—			—			(2,019		)	—
	(35,907		)	(24,048		)	(103,807		)	(57,123		)
Other Income and Expenses
Income from equity investments in real estate	954			1,226			5,221			3,921
Other income and (expenses)	2,768			2,337			4,038			2,475
Interest expense	(18,229		)	(12,860		)	(52,864		)	(35,956		)
	(14,507		)	(9,297		)	(43,605		)	(29,560		)
Income from continuing operations before income taxes	18,951			15,770			56,478			49,468
Provision for income taxes	(22		)	(876		)	(459		)	(1,120		)
Income from continuing operations	18,929			14,894			56,019			48,348
Discontinued Operations
Income from operations of discontinued properties	—			93			85			503
Gain on sale of real estate	—			—			740			787
Income from discontinued operations	—			93			825			1,290
Net Income	18,929			14,987			56,844			49,638
Less: Net income attributable to noncontrolling interests	(6,634		)	(4,683		)	(19,160		)	(14,056		)
Net Income Attributable to CPA®:17 — Global Stockholders	$	12,295		$	10,304		$	37,684		$	35,582
Earnings Per Share
Income from continuing operations attributable to CPA®:17 — Global stockholders	$	0.05		$	0.06		$	0.16		$	0.20
Income from discontinued operations attributable to CPA®:17 — Global stockholders	—			—			—			0.01
Net income attributable to CPA®:17 — Global stockholders	$	0.05		$	0.06		$	0.16		$	0.21
Weighted Average Shares Outstanding	256,954,985			184,111,963			236,785,886			167,293,746
Amounts Attributable to CPA®:17 — Global Stockholders
Income from continuing operations, net of tax	$	12,295		$	10,211		$	36,859		$	34,292
Income from discontinued operations, net of tax	—			93			825			1,290
Net income	$	12,295		$	10,304		$	37,684		$	35,582
Distributions Declared Per Share	$	0.1643		$	0.1625		$	0.4893		$	0.4850

See Notes to Consolidated Financial Statements.

CPA®:17 – Global 9/30/2012 10-Q — 3

CORPORATE PROPERTY ASSOCIATES 17 — GLOBAL INCORPORATED

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)

(in thousands)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Net Income	$	18,929		$	14,987		$	56,844		$	49,638
Other Comprehensive Income (Loss):
Foreign currency translation adjustments	13,905			(29,688		)	(2,432		)	16,905
Unrealized (loss) gain on derivative instruments	(7,203		)	3,856			(10,119		)	(2,149		)
Change in unrealized appreciation (depreciation) on marketable securities	23			—			1,006			(15		)
	6,725			(25,832		)	(11,545		)	14,741
Comprehensive Income (Loss)	25,654			(10,845		)	45,299			64,379
Amounts Attributable to Noncontrolling Interests:
Net income	(6,634		)	(4,683		)	(19,160		)	(14,056		)
Foreign currency translation adjustments	(222		)	586			64			(259		)
Change in unrealized (gain) loss on derivative instrument	(109		)	58			(259		)	172
Comprehensive income attributable to noncontrolling interests	(6,965		)	(4,039		)	(19,355		)	(14,143		)
Comprehensive Income (Loss) Attributable to CPA®:17 — Global Stockholders	$	18,689		$	(14,884	)	$	25,944		$	50,236

See Notes to Consolidated Financial Statements.

CPA®:17 – Global 9/30/2012 10-Q — 4

CORPORATE PROPERTY ASSOCIATES 17 — GLOBAL INCORPORATED

CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED)

For the Nine Months Ended September 30, 2012 and the Year Ended December 31, 2011

(in thousands, except share and per share amounts)

			CPA®:17 – Global Stockholders
							Distributions			Accumulated						Total
	Total				Additional		in Excess of			Other						CPA®:17 –
	Outstanding		Common		Paid-In		Accumulated			Comprehensive			Treasury			Global			Noncontrolling
	Shares		Stock		Capital		Earnings			Loss			Stock			Stockholders			Interests			Total
Balance at January 1, 2011	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	63,628,957		63		571,592											571,655						571,655
Shares issued to affiliates	1,114,867		2		11,182											11,184						11,184
Contributions from noncontrolling interests																—			1,197			1,197
Distributions declared ($0.6475 per share)							(113,271		)							(113,271		)				(113,271		)
Distributions to noncontrolling interests																—			(23,214		)	(23,214		)
Net income							49,655									49,655			20,791			70,446
Other comprehensive loss:
Foreign currency translation adjustments										(12,533		)				(12,533		)	(220		)	(12,753		)
Change in unrealized loss on derivative instruments										(5,110		)				(5,110		)	(109		)	(5,219		)
Change in unrealized appreciation on marketable securities										(15		)				(15		)				(15		)
Repurchase of shares	(961,968	)											(9,060		)	(9,060		)				(9,060		)
Balance at December 31, 2011	206,148,818		208		1,863,227		(157,062		)	(32,601		)	(17,104		)	1,656,668			70,791			1,727,459
Shares issued, net of offering costs	59,729,413		59		533,439											533,498						533,498
Shares issued to affiliates	1,536,439		2		15,429											15,431						15,431
Contributions from noncontrolling interests																—			173			173
Distributions declared ($0.4893 per share)							(115,359		)							(115,359		)				(115,359		)
Distributions to noncontrolling interests																—			(17,445		)	(17,445		)
Net income							37,684									37,684			19,160			56,844
Other comprehensive (loss) income:
Foreign currency translation adjustments										(2,368		)				(2,368		)	(64		)	(2,432		)
Change in unrealized (loss) gain on derivative instruments										(10,378		)				(10,378		)	259			(10,119		)
Change in unrealized appreciation on marketable securities										1,006						1,006						1,006
Repurchase of shares	(1,294,681	)											(12,197		)	(12,197		)				(12,197		)
Balance at September 30, 2012	266,119,989		$	269	$	2,412,095	$	(234,737	)	$	(44,341	)	$	(29,301	)	$	2,103,985		$	72,874		$	2,176,859

See Notes to Consolidated Financial Statements.

CPA®:17 – Global 9/30/2012 10-Q — 5

CORPORATE PROPERTY ASSOCIATES 17 — GLOBAL INCORPORATED

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(in thousands)

	Nine Months Ended September 30,
	2012			2011
Cash Flows — Operating Activities
Net income	$	56,844		$	49,638
Adjustments to net income:
Depreciation and amortization, including intangible assets and deferred financing costs, and other charges	52,184			31,711
Income from equity investments in real estate less than distributions received	178			657
Issuance of shares to affiliate in satisfaction of fees due	15,431			7,543
Gain on sale of real estate	(740		)	(787		)
Unrealized loss (gain) on foreign currency transactions and others	671			(307		)
Realized gain on foreign currency transactions and others	(907		)	(1,634		)
Straight-line rent adjustment and amortization of rent-related intangibles	(9,678		)	(7,256		)
Settlement of derivative liability	—			(5,131		)
Impairment charges	2,019			—
Decrease (increase) in accounts receivable and prepaid expenses	6,974			(2,980		)
Increase (decrease) in accounts payable and accrued expenses	2,578			(551		)
Increase in prepaid and deferred rental income	2,079			2,940
Decrease in due to affiliates	(2,764		)	(987		)
Net changes in other operating assets and liabilities	730			(1,619		)
Net cash provided by operating activities	125,599			71,237
Cash Flows — Investing Activities
Distributions received from equity investments in real estate in excess of equity income	10,412			89,995
Acquisitions of real estate and direct financing leases and other capital expenditures	(402,594		)	(549,205		)
Capital contributions to equity investments in real estate	(7,890		)	(228,124		)
Funding of notes receivable	—			(30,000		)
Value added taxes (“VAT”) paid in connection with acquisition of real estate	(3,609		)	(3,542		)
VAT refunded in connection with acquisitions of real estate	2,663			29,336
Proceeds from sale of real estate	12,657			19,821
Funds placed in escrow	(34,479		)	(191,119		)
Funds released from escrow	24,423			182,119
Payment of deferred acquisition fees to an affiliate	(11,881		)	(11,080		)
Proceeds from repayment of notes receivable	—			49,560
Purchase of securities	(7,071		)	(2,394		)
Net cash used in investing activities	(417,369		)	(644,633		)
Cash Flows — Financing Activities
Distributions paid	(105,935		)	(72,585		)
Contributions from noncontrolling interests	173			1,198
Distributions to noncontrolling interests	(17,445		)	(17,097		)
Scheduled payments of mortgage principal	(13,119		)	(10,425		)
Proceeds from mortgage financing	214,808			213,917
Funds placed in escrow	8,613			17,936
Funds released from escrow	(1,515		)	(6,510		)
Proceeds from loan from an affiliate	—			90,000
Repayment of loan from an affiliate	—			(90,000		)
Refund (payment) of financing costs and mortgage deposits, net of deposits paid and refunded	1,876			(4,476		)
Proceeds from issuance of shares, net of issuance costs	526,202			435,022
Purchase of treasury stock	(12,197		)	(4,155		)
Net cash provided by financing activities	601,461			552,825
Change in Cash and Cash Equivalents During the Period
Effect of exchange rate changes on cash	258			4,608
Net increase (decrease) in cash and cash equivalents	309,949			(15,963		)
Cash and cash equivalents, beginning of period	180,726			162,745
Cash and cash equivalents, end of period	$	490,675		$	146,782

See Notes to Consolidated Financial Statements.

CPA®:17 – Global 9/30/2012 10-Q — 6

CORPORATE PROPERTY ASSOCIATES 17 — GLOBAL INCORPORATED

CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED)

(Continued)

Supplemental non-cash investing and financing activities:

(a)The cost basis of real estate investments acquired during the nine months ended September 30, 2012 and 2011, including equity investments in real estate, also included deferred acquisition fees payable and other accrued liabilities of $12.4 million and $16.1 million, respectively (Note 3, Note 4).

(b)In September 2011, we purchased substantially all of the economic and voting interests in a real estate fund for $164.2 million, based on the exchange rate of the Euro on the date of acquisition. This transaction consisted of the acquisition and assumption of certain assets and liabilities, as detailed in the table below (in thousands).

Assets acquired at fair value:
Investments in real estate	$	274,840
Intangible assets, net	122,735
Liabilities assumed at fair value:
Non-recourse debt	(222,680		)
Accounts payable, accrued expenses and other liabilities	(8,912		)
Prepaid and deferred rental income	(1,791		)
Net assets acquired	$	164,192

See Notes to Consolidated Financial Statements.

CPA®:17 – Global 9/30/2012 10-Q — 7

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 and predecessors, “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, primarily 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, sales of properties, and changes in foreign currency exchange rates. At September 30, 2012, our portfolio was comprised of our full or partial ownership interests in 321 fully-occupied properties, substantially all of which were triple-net leased to 52 tenants, and totaled approximately 26 million square feet (on a pro rata basis). In addition, we own 51 self-storage properties and retain a fee interest in a hotel property for an aggregate of approximately 4 million square feet. As opportunities arise, we may also make other types of commercial real estate related investments. We were formed in 2007 and are managed by W. P. Carey Inc. (“WPC”) and its subsidiaries (collectively, the “advisor”).

At September 30, 2012, CPA®:17 — Global owned approximately 99.985% of general and limited partnership interests in the Operating Partnership. The remaining 0.015% interest in the operating partnership is held by a subsidiary of WPC.

Public Offerings

Since inception through the termination of our initial public offering on April 7, 2011, upon the effectiveness of our follow-on offering described below, we raised a total of approximately $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, which was declared effective by the SEC on April 7, 2011, terminating our initial public offering. The registration statement also covers the offering of shares of common stock at $9.50 pursuant to our distribution reinvestment and stock purchase plan (“DRIP”). We refer to this continuous public offering as the “follow-on offering.” In August 2012, we reallocated 30 million shares of our common stock ($300.0 million) registered under our DRIP to our follow-on offering. Upon reallocation, we are offering up to $1.5 billion in shares of our common stock, including $175.0 million in shares of common stock through our DRIP. From the beginning of the follow-on offering on April 7, 2011 through September 30, 2012, we raised $960.5 million. We may sell our shares in the follow-on offering until April 7, 2013. Based on current sales projections, we anticipate that we will close the offering on or before January 10, 2013. The offering may close earlier if all of the offering’s shares have been sold. There can be no assurance that all shares will be sold by that date.

We intend to continue 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, 2011, which are included in the 2011 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.

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.

CPA®:17 – Global 9/30/2012 10-Q — 8

Notes to Consolidated Financial Statements

Actual results could differ from those estimates. The unaudited consolidated financial statements included in this Report have been retrospectively adjusted to reflect the disposition (or planned disposition) of certain properties as discontinued operations for all periods presented.

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 for reporting purposes, directly or indirectly, to us is presented as noncontrolling interests. All significant intercompany accounts and transactions have been eliminated.

We have investments in tenancy-in-common interests in various domestic and international properties. Consolidation of these investments is not required as they do not qualify as Variable Interest Entities (“VIE”) and do not meet the control requirement required for consolidation. Accordingly, we account for these investments using the equity method of accounting. We use the equity method of accounting because the shared decision-making involved in a tenancy-in-common interest investment creates an opportunity for us to have significant influence on the operating and financial decisions of these investments and thereby creates some responsibility by us for a return on our investment. Additionally, we own interests in single-tenant net leased properties leased to corporations through noncontrolling interests in partnerships and limited liability companies that we do not control but over which we exercise significant influence. We account for these investments under the equity method of accounting. At times the carrying value of our equity investments may fall below zero for certain investments. We intend to fund our share of these jointly-owned investments’ future operating deficits should the need arise. However, we have no legal obligation to pay for any of the liabilities of such investments, nor do we have any legal obligation to fund operating deficits.

During the third quarter of 2012, we determined that the entities related to two construction projects were VIEs as a third-party tenant was deemed to have the power to direct matters that most significantly impact these entities. Our sole purpose is to fund the development, while the tenant has the decision-making power over the construction. We determined that we would continue to consolidate these entities as we remain their primary beneficiary.

Because we conduct our investment activities and own all of our assets through an 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):

	September 30, 2012			December 31, 2011
Assets:
Cash and cash equivalents not attributable to consolidated VIE	$	4,217		$	7,585
Other assets, net not attributable to consolidated VIE	736			2,811
Total assets not attributable to VIE	$	4,953		$	10,396
Liabilities:
Due to affiliates not attributable to consolidated VIE	$	(2,662	)	$	(1,044	)
Distributions payable not attributable to consolidated VIE	(41,712		)	(32,288		)
Total liabilities not attributable to VIE	$	(44,374	)	$	(33,332	)

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.

Counterparty Credit Risk Portfolio Exception Election

Effective January 1, 2011, or the “effective date,” we have made an accounting policy election to use the exception in Accounting Standards Codification 820-10-35-18D, the “portfolio exception,” with respect to measuring counterparty credit risk for derivative instruments, consistent with the guidance in 820-10-35-18G. We manage credit risk for our derivative positions on a counterparty-by-counterparty basis (that is, on the basis of its net portfolio exposure with each counterparty), consistent with our risk management strategy for such transactions. We manage credit risk by considering indicators of risk such as credit ratings, and by negotiating terms in our International Swaps and Derivatives Association, Inc. (“ISDA”) master netting arrangements with each individual counterparty.

CPA®:17 – Global 9/30/2012 10-Q — 9

Notes to Consolidated Financial Statements

Credit risk plays a central role in the decision of which counterparties to consider for such relationships and when deciding with whom it will enter into derivative transactions. Since the effective date, we have monitored and measured credit risk and calculated credit valuation adjustments for our derivative transactions on the basis of its relationships at ISDA master netting arrangement level. We receive reports from an independent third-party valuation specialist on a quarterly basis providing the credit valuation adjustments at the counterparty portfolio level for purposes of reviewing and managing our credit risk exposures. Since the portfolio exception applies only to the fair value measurement and not to financial statement presentation, the portfolio-level adjustments are then allocated in a reasonable and consistent manner each period to the individual assets or liabilities that make up the group, in accordance with other applicable accounting guidance and our accounting policy elections. Derivative transactions are measured at fair value in the statement of financial position each reporting period. We note that key market participants take into account the existence of such arrangements that mitigate credit risk exposure in the event of default. As such, we elect to apply the portfolio exception in 820-10-35-18D with respect to measuring counterparty credit risk for all of our derivative transactions subject to master netting arrangements.

Information about International Geographic Areas

At the end of our reporting period, our international investments were comprised of investments primarily in Europe. Foreign currency exposure and risk management are discussed in Note 9. The following tables present information about these investments (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Revenues	$	20,370	$	12,956	$	62,006	$	38,794
Income from continuing operations before income taxes	8,643		6,587		26,436		20,541
Net income	8,680		5,847		25,655		19,557

	September 30, 2012		December 31, 2011
Net investments in real estate	$	994,013	$	980,160

Note 3. Agreements and Transactions with Related Parties

Transactions with the Advisor

We have an advisory agreement with the advisor whereby the advisor performs certain services for us under a fee arrangement. On September 28, 2012, following the merger between our advisor and our affiliate, Corporate Property Associates 15 Incorporated (“CPA®:15”), we entered into an amended and restated advisory agreement, which is scheduled to renew annually. The advisory agreement provides for the allocation of the advisor’s personnel expenses on the basis of our revenues and those of the other publicly-owned, non-listed REITs which are managed by our advisor under Corporate Property Associates brand name (the “CPA® REITs”) rather than on an allocation of time charges incurred by the advisor’s personnel on our behalf. The fee structure related to asset management fees, initial acquisition fees, subordinated acquisition fees, and subordinated disposition fees remains unchanged. Additionally, the advisor remains entitled to 10% of our available cash (the “Available Cash Distribution”), which is defined as cash generated from operations, excluding capital proceeds, as reduced by operating expenses and debt service, excluding prepayments and lump-sum or “balloon” payments. 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 affiliates regarding joint investments. The following tables present a summary of fees we paid and expenses we reimbursed to the advisor in accordance with the advisory agreement (in thousands):

CPA®:17 – Global 9/30/2012 10-Q — 10

Notes to Consolidated Financial Statements

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Amounts included in the statements of income:
Asset management fees (a)	$	4,906	$	3,344	$	14,224	$	9,274
Distribution of available cash (b)	3,667		1,981		10,225		5,769
Personnel reimbursements (c)	1,181		699		3,322		1,515
Office rent reimbursements (c)	214		135		561		277
	$	9,968	$	6,159	$	28,332	$	16,835
Transaction fees incurred:
Current acquisition fees (d)	$	4,272	$	11,669	$	9,853	$	22,245
Deferred acquisition fees (d)(e)	3,360		8,216		7,711		16,085
	$	7,632	$	19,885	$	17,564	$	38,330

	September 30, 2012		December 31, 2011
Unpaid transaction fees:
Deferred acquisition fees	$	18,576	$	22,748
Subordinated disposition fees (f)	202		202
	$	18,778	$	22,950

(a)Asset management fees are included in Property expenses in the consolidated financial statements. For both 2012 and 2011, the advisor elected to receive its asset management fees in shares of our common stock. At September 30, 2012, the advisor owned 3,446,307 shares, or 1.3% of our outstanding common stock.

(b)We also pay the advisor up to 10% of the Available Cash, as defined in the limited partnership agreement of the operating partnership, which is defined as cash generated from operations, excluding capital proceeds, as reduced by operating expenses and debt service, excluding prepayments and lump-sum payments.

(c)Personnel and office rent reimbursements are included in General and administrative expenses in the consolidated financial statements. Based on gross revenues through September 30, 2012, our current share of future annual minimum lease payments under our agreement would be $0.8 million annually through 2016; however, we anticipate that our share of future annual minimum lease payments will increase as we continue to invest the proceeds of our offerings.

(d)Current and deferred acquisition fees for real estate asset acquisitions were capitalized and included in the cost basis of the assets acquired and for business combinations were expensed and included in General and administrative expenses.

(e)We made payments of deferred acquisition fees to the advisor totaling $11.9 million and $11.1 million during the nine months ended September 30, 2012 and 2011, respectively.

(f)These fees, which are subordinated to the performance criterion and certain other provisions included in the advisory agreement, are deferred and are payable to the advisor only in connection with a liquidity event for our stockholders.

The total costs paid by the advisor and its affiliates in connection with the organization and offering of our securities were $19.8 million from inception through September 30, 2012, of which $19.4 million had been reimbursed as of September 30, 2012.

Jointly-Owned Investments and Other Transactions with Affiliates

We own interests in entities ranging from 12% to 85%, as well as jointly-controlled tenancy-in-common interests in properties, with the remaining interests generally held by affiliates. We consolidate certain of these investments and account for the remainder under the equity method of accounting.

During May 2011, we purchased equity interests in three investments: the Hellweg Die Profi-Baumarkte GmbH & Co. KG (“Hellweg 2”) investment, the U-Haul Moving Partners, Inc. and Mercury Partners, LP investment and the Dick’s Sporting Goods, Inc. investment, from one of our affiliates, Corporate Property Associates 14 Incorporated (“CPA®:14”), in connection with the merger of CPA®:14 with and into a subsidiary of another affiliate, Corporate Property Associates 16 — Global Incorporated (the “CPA®:14/16 Merger”) (Note 6).

CPA®:17 – Global 9/30/2012 10-Q — 11

Notes to Consolidated Financial Statements

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

Real Estate

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

	September 30, 2012			December 31, 2011
Land	$	464,804		$	390,445
Buildings	1,407,113			1,109,706
Less: Accumulated depreciation	(66,263		)	(40,522		)
	$	1,805,654		$	1,459,629

Acquisitions of Real Estate

During the nine months ended September 30, 2012, we entered into the following domestic investments, which were classified as operating leases, at a total cost of $316.1 million, including net lease intangible assets totaling $75.0 million (Note 7) and acquisition-related costs and fees:

·an investment for $169.0 million with Blue Cross Blue Shield, Inc (“BCBS”) for eight office facilities;

·an investment for $66.9 million with RLJ-McLarty-Landers Automotive Holdings, LLC (“RML”) for nine automotive dealerships;

·an investment for $36.3 million with R.R. Donnelley & Sons Company for an office facility;

·an investment for $25.0 million with South University for two office facilities;

·an investment for $7.0 million with Bearing Technologies, LTD for a manufacturing facility;

·an investment for $6.9 million with Clayco Inc for an office facility; and

·two follow-on transactions in an existing investment for a total cost of $5.0 million.

In connection with these investments, which we deemed to be real estate asset acquisitions under current authoritative accounting guidance, the purchase price was allocated to the assets acquired, based upon their fair values, and we capitalized acquisition-related costs and fees totaling $15.5 million.

Additionally, we acquired an investment for $14.6 million with Shale-Inland Holdings LLC for a multi-tenant industrial facility. As this acquisition was deemed to be a business combination under current authoritative accounting guidance, we expensed acquisition-related costs and fees totaling $0.8 million, which are included in General and administrative expenses in the consolidated financial statements.

Assets disposed of during the current year period are discussed in Note 13. During this period, the U.S. dollar strengthened against the Euro, as the end-of-period rate for the U.S. dollar in relation to the Euro at September 30, 2012 decreased 0.7% to $1.2860 from $1.2950 at December 31, 2011. The impact of this strengthening was a $3.3 million decrease in Real estate from December 31, 2011 to September 30, 2012.

Operating Real Estate

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

	September 30, 2012			December 31, 2011
Land	$	50,214		$	43,950
Buildings	151,702			132,478
Furniture, fixtures & equipment	1,222			1,713
Less: Accumulated depreciation	(6,076		)	(2,745		)
	$	197,062		$	175,396

CPA®:17 – Global 9/30/2012 10-Q — 12

Notes to Consolidated Financial Statements

Acquisitions of Operating Real Estate

During the nine months ended September 30, 2012, we acquired seven self-storage properties throughout the U. S. for a total cost of $25.3 million, including lease intangible assets of $3.1 million (Note 7). As these acquisitions were deemed to be business combinations under current authoritative accounting guidance, we expensed the acquisition-related costs totaling $0.7 million, which are included in General and administrative expenses in the consolidated financial statements.

Real Estate Under Construction

During the nine months ended September 30, 2012, we entered into three build-to-suit projects, which consisted of the following:

·one project with Nippon Sheet Glass Co., Ltd. for the construction of a warehouse located in Poland, which we funded, and placed assets totaling $25.2 million into service, which are now classified as Real Estate, at cost. Amounts are based on the exchange rate of the Euro on the date of acquisition;

·one project with Syncreon Logistics Polska Sp. for the construction of an industrial facility located in Poland for a total cost of up to $8.3 million, of which we funded $1.5 million through September 30, 2012. Amounts are based on the exchange rate of the Euro on the date of acquisition; and

·one domestic project with Sabre Communications Corp. for the construction of a new facility for a total cost of up to $17.8 million, of which we funded $2.3 million through September 30, 2012.

Amounts above are based on the estimated construction costs at the respective dates of acquisition, including acquisition-related costs and fees. 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 $3.0 million.

During the nine months ended September 30, 2012, we also funded $29.4 million and placed assets totaling $114.9 million into service, which are now classified as Real Estate, at cost, for projects that we entered into in 2011 and 2010.

In connection with our build-to-suit projects, we capitalized interest totaling $1.3 million during the nine months ended September 30, 2012. At September 30, 2012, the aggregate unfunded commitments on these projects totaled approximately $50.8 million.

Asset Retirement Obligations

We have recorded asset retirement obligations for the removal of asbestos and environmental waste in connection with several of our acquisitions. We estimated the fair value of the asset retirement obligations based on the estimated economic lives of the properties and the estimated removal costs provided by the inspectors. The liability was discounted using the weighted-average interest rate on the associated fixed-rate mortgage loans at the time the liability was incurred.

The following table provides a reconciliation of our asset retirement obligations, which are included in Accounts payable, accrued expenses and other liabilities on the consolidated balance sheets, for the periods presented (in thousands):

	September 30, 2012		December 31, 2011
Balance - beginning of period	$	11,453	$	1,508
Additions	3,684		9,562
Accretion expense	394		250
Foreign currency translation adjustments and other	292		133
Balance - end of period	$	15,823	$	11,453

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.

CPA®:17 – Global 9/30/2012 10-Q — 13

Notes to Consolidated Financial Statements

Acquisitions of Net Investments in Direct Financing Leases

During the nine months ended September 30, 2011, we entered into two domestic net lease financing transactions, one of which was with Flanders Corporation for $50.8 million and the other with Spear Precision & Packaging, Inc. for $8.0 million, including acquisition-related fees and expenses. In connection with these investments, which were deemed to be real estate asset acquisitions under current authoritative accounting guidance, we capitalized acquisition-related fees and expenses of $2.6 million.

Notes Receivable

In June 2011, we provided financing of $30.0 million to a developer, BPS Partners, LLC (“BPS”), in connection with the construction of a shopping center, which includes a Walgreens store, in Las Vegas, Nevada. In connection with the loan, we received an option to purchase the second floor of the Walgreens store or to exchange the $30.0 million loan for an equity interest in BPS. This loan is collateralized by the property and personally guaranteed by each of the principals of BPS, has an annual interest rate of 0.5% and matures in September 2013. On its maturity date, if we do not elect to exchange the loan for an equity interest in BPS, we will receive additional interest at an annual rate of 7.5% from inception through maturity as consideration for making the loan. At both September 30, 2012 and December 31, 2011, the balance of this note receivable was $30.0 million.

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 that is guaranteed by Forte’s parent company, Fosun International Limited, and has an interest rate of 11% and matures in December 2015. At both September 30, 2012 and December 31, 2011, the balance of the note receivable was $40.0 million.

Credit Quality of Finance Receivables

We generally seek investments in facilities that we believe are critical to each tenant’s business and that we believe have a low risk of tenant defaults. At September 30, 2012 and December 31, 2011, 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 during the nine months ended September 30, 2012. 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 third quarter of 2012.

A summary of our finance receivables by internal credit quality rating for the periods presented is as follows (dollars in thousands):

	Number of Tenants at		Net Investments in Direct Financing Leases at
Internal Credit Quality Indicator	September 30, 2012	December 31, 2011	September 30, 2012		December 31, 2011
1	1	1	$	2,235	$	2,225
2	2	3	60,333		85,857
3	8	6	411,709		374,423
4	—	—	—		—
5	—	—	—		—
			$	474,277	$	462,505

At September 30, 2012 and December 31, 2011, Other assets, net included $4.0 million and $2.0 million, respectively, of accounts receivable related to amounts billed under these direct financing leases.

	Number of Obligors at		Notes Receivable at
Internal Credit Quality Indicator	September 30, 2012	December 31, 2011	September 30, 2012		December 31, 2011
1	1	1	$	30,000	$	30,000
2	1	1	40,000		40,000
3	—	—	—		—
4	—	—	—		—
5	—	—	—		—
			$	70,000	$	70,000

CPA®:17 – Global 9/30/2012 10-Q — 14

Notes to Consolidated Financial Statements

Note 6. Equity Investments in Real Estate

We own equity interests in single-tenant net leased properties that are generally leased to corporations through noncontrolling interests (i) in partnerships and limited liability companies that we do not control but over which we exercise significant influence or (ii) as 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). Under current authoritative accounting guidance for investments in unconsolidated investments, 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.

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		Carrying Value at
Lessee	at September 30, 2012		September 30, 2012		December 31, 2011
C1000 Logistiek Vastgoed B.V. (a) (b)	85	%	$	83,208	$	89,063
U-Haul Moving Partners, Inc. and Mercury Partners, LP (c)	12	%	28,233		28,956
Hellweg Die Profi-Baumarkte GmbH & Co. KG(a) (c) (d)	33	%	23,424		16,817
Berry Plastics Corporation	50	%	18,750		19,411
Tesco plc (a)	49	%	16,858		17,923
Eroski Sociedad Cooperativa - Mallorca (a) (c)	30	%	9,099		9,158
Dick’s Sporting Goods, Inc.	45	%	5,276		5,739
			$	184,848	$	187,067

(a)The carrying value of this investment is affected by the impact of fluctuations in the exchange rate of the Euro.

(b)We acquired our tenancy-in-common interest, under which the entity is under common control by us and our investment partner, in this investment in January 2011.

(c)We acquired our interest in this investment from CPA®:14 in May 2011 in connection with the CPA®:14/16 Merger (Note 3).

(d)In May 2012, we made a contribution of $7.9 million to the investment to repurchase a portion of its outstanding mortgage loan. In connection with the purchase, the entity recognized a net gain on extinguishment of debt of $5.9 million, of which our share was $1.9 million.

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

	September 30, 2012			December 31, 2011
Assets	$	1,099,466		$	1,125,342
Liabilities	(715,044		)	(748,312		)
Partners’/members’ equity	$	384,422		$	377,030

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Revenues	$	25,753		$	27,032		$	84,607		$	55,456
Expenses	(20,109		)	(20,238		)	(60,294		)	(42,707		)
Net income from continuing operations	$	5,644		$	6,794		$	24,313		$	12,749
Net income attributable to equity method investments	$	5,644		$	6,794		$	24,313		$	12,749

We recognized income from equity investments in real estate of $1.0 million and $1.2 million for the three months ended September 30, 2012 and 2011, respectively, and $5.2 million and $3.9 million for the nine months ended September 30, 2012 and 2011, respectively. Income from equity investments in real estate represents our proportionate share of the income or losses of these

CPA®:17 – Global 9/30/2012 10-Q — 15

Notes to Consolidated Financial Statements

investments as well as certain depreciation and amortization adjustments related to other-than-temporary impairment charges and basis differentials from acquisitions of certain investments.

Note 7. Intangible Assets and Liabilities

In connection with our acquisition of properties through September 30, 2012, we have net lease intangibles that are being amortized over periods ranging from one year to 37 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 in the consolidated financial statements.

In connection with our investment activity during the nine months ended September 30, 2012, we have recorded intangibles as follows (in thousands):

	Weighted-Average Life	Amount
Amortizable Intangible Assets
Lease intangibles:
In-place lease	16.5	$	88,788
Above-market rent	16.7	13,366
Total intangible assets		$	102,154
Amortizable Below-Market Rent Intangible Liabilities
Below-market rent	22.6	$	(21,275	)
Total intangible liabilities		$	(21,275	)

Intangible assets and liabilities are summarized as follows (in thousands):

	September 30, 2012			December 31, 2011
Amortizable Intangible Assets
Lease intangibles:
In-place lease	$	373,489		$	286,913
Tenant relationship	13,079			13,102
Above-market rent	72,158			58,788
Less: accumulated amortization	(46,921		)	(24,666		)
Total intangible assets	$	411,805		$	334,137
Amortizable Below-Market Rent Intangible Liabilities
Below-market rent	$	(47,969	)	$	(26,809	)
Less: accumulated amortization	2,880			1,187
Total intangible liabilities	$	(45,089	)	$	(25,622	)

Net amortization of intangibles, including the effect of foreign currency translation, was $7.3 million and $5.5 million for the three months ended September 30, 2012 and 2011, respectively, and $20.5 million and $12.4 million for the nine months ended September 30, 2012 and 2011, respectively. Amortization of below-market and above-market rent intangibles is recorded as an adjustment to Lease revenues, while amortization of in-place lease and tenant relationship intangibles is included in Depreciation and amortization.

CPA®:17 – Global 9/30/2012 10-Q — 16

Notes to Consolidated Financial Statements

Based on the intangible assets and liabilities recorded at September 30, 2012, scheduled annual net amortization of intangibles for each of the next five years and thereafter is as follows (in thousands):

Years Ending December 31,	Total
2012 (remainder)	$	7,570
2013	28,103
2014	25,115
2015	23,326
2016	22,715
Thereafter	259,887
Total	$	366,716

Note 8. 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 an interest rate cap and swaps; and Level 3, for securities and other derivative assets that do not fall into Level 1 or Level 2 and for which little or no market data exists, therefore requiring us to develop our own assumptions.

Items Measured at Fair Value on a Recurring Basis

The methods and assumptions described below 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 as we used quoted prices from active markets to determine their fair values.

Derivative Assets and Liabilities — Our derivative assets and liabilities were comprised of interest rate swaps, an interest rate cap, and foreign currency exchange contracts, which are included in Other assets, net and Accounts payable, accrued expenses and other liabilities, respectively, in the consolidated financial statements. The interest rate swaps and cap and foreign currency exchange contracts were measured at fair value using readily observable market inputs, such as quotations on interest rates and foreign currency exchange rates. These 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.

Other Derivative Assets — Our other derivative assets were comprised of stock warrants that were granted to us by lessees in connection with structuring initial lease transactions. The stock warrants are not traded in an active market. We estimated the fair value of stock warrants using internal valuation models that incorporate market inputs and our own assumptions about future cash flows. We classified stock warrants as Level 3.

CPA®:17 – Global 9/30/2012 10-Q — 17

Notes to Consolidated Financial Statements

The following tables set forth our assets and liabilities that were accounted for at fair value on a recurring basis. Assets and liabilities presented below exclude assets and liabilities owned by equity method investments (in thousands):

				Fair Value Measurements at September 30, 2012 Using:
				Quoted Prices in
				Active Markets for		Significant Other			Unobservable
				Identical Assets		Observable Inputs			Inputs
Description	Total			(Level 1)		(Level 2)			(Level 3)
Assets:
Derivative assets	$	10,641		$	—	$	10,641		$	—
Money market funds	10,720			10,720		—			—
Other derivative assets	1,353			—		—			1,353
Total	$	22,714		$	10,720	$	10,641		$	1,353
Liabilities:
Derivative liabilities	$	(19,148	)	$	—	$	(19,148	)	$	—
Total	$	(19,148	)	$	—	$	(19,148	)	$	—

				Fair Value Measurements at December 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:
Derivative assets	$	10,945		$	—	$	10,945		$	—
Money market funds	5,997			5,997		—			—
Other derivative assets	1,419			—		—			1,419
Total	$	18,361		$	5,997	$	10,945		$	1,419
Liabilities:
Derivative liabilities	$	(8,682	)	$	—	$	(8,682	)	$	—
Total	$	(8,682	)	$	—	$	(8,682	)	$	—

	Fair Value Measurements Using Significant
	Unobservable Inputs (Level 3 Only)
	Other Derivative Assets
	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Beginning balance	$	1,419		$	1,683		$	1,419		$	—
Total gains or losses (realized and unrealized):
Included in earnings	(66		)	(264		)	(66		)	(198		)
Purchases	—			—			—			1,617
Ending balance	$	1,353		$	1,419		$	1,353		$	1,419
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date	$	(66	)	$	(264	)	$	(66	)	$	(198	)

We did not have any transfers into or out of Level 1, Level 2 and Level 3 measurements during the three and nine months ended September 30, 2012 and 2011. Gains and losses (realized and unrealized) included in earnings are reported in Other income and (expenses) in the consolidated financial statements.

CPA®:17 – Global 9/30/2012 10-Q — 18

Notes to Consolidated Financial Statements

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

		September 30, 2012				December 31, 2011
	Level	Carrying Value		Fair Value		Carrying Value		Fair Value
Debt (a)	3	$	1,357,730	$	1,391,966	$	1,154,254	$	1,184,309
Notes receivable (a)	3	70,000		75,729		70,000		71,297
CMBS (b)	3	2,049		3,619		3,777		6,701
Other securities (c)	3	8,301		10,800		1,230		1,230

(a)We determined the estimated fair value of our debt and notes receivable instruments using a discounted cash flow model with rates that take into account the credit of the tenants and interest rate risk. We also considered the value of the underlying collateral taking into account the quality of the collateral, the credit quality of the company, the time until maturity and the current interest rate.

(b)The carrying value of our commercial mortgage-backed securities (“CMBS”) represents historical cost, as we have deemed these securities to be held-to-maturity, and is inclusive of impairment charges recognized during 2012. There were no purchases or sales during the nine months ended September 30, 2012.

(c)During June 2012, we acquired equity securities in a warehouse and logistics company for a total cost of $7.1 million, representing a follow-on transaction regarding a $1.2 million investment that we made during 2011.

We estimate that our remaining financial assets and liabilities (excluding net investments in direct financing leases) had fair values that approximated their carrying values at both September 30, 2012 and December 31, 2011.

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 determine 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 review 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. As a result of our assessments, we did not recognize any impairment charges on our real estate investments during the nine months ended September 30, 2012 or 2011. The valuation of real estate is subject to significant judgment and actual results may differ materially if market conditions or the underlying assumptions change.

The following table presents information about our other assets that were measured on a fair value. All of the impairment charges were measured using unobservable inputs (Level 3) and were recorded based on market conditions and assumptions that existed at the time (in thousands):

	Three Months Ended September 30, 2012				Three Months Ended September 30, 2011
	Total Fair Value		Total Impairment		Total Fair Value		Total Impairment
Impairment Charges from Continuing Operations	Measurements		Charges		Measurements		Charges
CMBS	$	—	$	—	$	—	$	—

	Nine Months Ended September 30, 2012				Nine Months Ended September 30, 2011
	Total Fair Value		Total Impairment		Total Fair Value		Total Impairment
Impairment Charges from Continuing Operations	Measurements		Charges		Measurements		Charges
CMBS	$	—	$	2,019	$	—	$	—

CMBS

During the first quarter of 2012, we incurred other-than-temporary impairment charges on our CMBS portfolio totaling $2.0 million to reduce the carrying values of three CMBS tranches to zero as a result of non-performance and the advisor’s assessment that the likelihood of receiving further interest payments or return of principal was remote.

CPA®:17 – Global 9/30/2012 10-Q — 19

Notes to Consolidated Financial Statements

Note 9. 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 that impact us: interest rate risk, credit risk and market risk. We are primarily subject to interest rate risk on our interest-bearing assets and liabilities. 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 our properties and related loans as well as changes in the value of our other investments due to changes in interest rates or other market factors. In addition, we own investments in the European Union and are subject to the risks associated with changing foreign currency exchange rates.

Use of Derivative Financial Instruments

When we use derivative instruments, it is generally to reduce our exposure to fluctuations in interest rates and foreign currency exchange rate movements. 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, which 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.

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. For a derivative designated and that qualified as a cash flow hedge, the effective portion of the change in fair value of the derivative is recognized in Other comprehensive income until the hedged item is recognized in earnings. The ineffective portion of a derivative’s change in fair value is immediately recognized in earnings. For a derivative designated and that qualified as a net investment hedge, the effective portion of the change in the fair value and/or the net settlement of the derivative are reported in Other comprehensive income as part of the cumulative foreign currency translation adjustment. The ineffective portion of the change in fair value of the derivative is recognized directly in earnings. Amounts are reclassified out of Other comprehensive income into earnings when the hedged investment is either sold or substantially liquidated.

CPA®:17 – Global 9/30/2012 10-Q — 20

Notes to Consolidated Financial Statements

The following table sets forth certain information regarding our derivative instruments for the periods presented (in thousands):

		Asset Derivatives Fair Value at				Liability Derivatives Fair Value at
	Balance Sheet Location	September 30, 2012		December 31, 2011		September 30, 2012			December 31, 2011
Derivatives Designated as Hedging Instruments
Foreign currency forwards	Other assets, net	$	6,046	$	5,206	$	—		$	—
Foreign currency collars	Other assets, net	4,592		5,657		—			—
Interest rate cap	Other assets, net	3		80		—			—
Foreign currency forwards	Accounts payable, accrued expenses and other liabilities	—		—		(293		)	(8,682		)
Interest rate swaps	Accounts payable, accrued expenses and other liabilities	—		—		(18,855		)	—
Derivatives Not Designated as Hedging Instruments
Stock warrants	Other assets, net	1,353		1,419		—			—
Put options	Other assets, net	—		224		—			—
Put options	Accounts payable, accrued expenses and other liabilities	—		—		—			(224		)
Total derivatives		$	11,994	$	12,586	$	(19,148	)	$	(8,906	)

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

	Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives (Effective Portion)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Derivatives in Cash Flow Hedging Relationships
Foreign currency forwards	$	(1,777	)	$	7,574		$	(268	)	$	2,095
Foreign currency collars	(1,119		)	—			(1,326		)	—
Interest rate cap (a)	242			(129		)	576			(382		)
Put options	—			—			192			—
Interest rate swaps	(3,780		)	(3,589		)	(10,109		)	(3,862		)
Derivatives in Net Investment Hedging Relationships(b)
Foreign currency forward	(769		)	—			816			—
Total	$	(7,203	)	$	3,856		$	(10,119	)	$	(2,149	)

	Amount of Gain (Loss) Reclassified from Other Comprehensive Income into Income (Effective Portion)
	Three Months Ended September 30,					Nine Months Ended September 30,
Derivatives in Cash Flow Hedging Relationships	2012			2011		2012			2011
Foreign currency collars (c)	$	273		$	—	$	1,719		$	—
Foreign currency forwards (c)	228			—		366			—
Interest rate cap	(247		)	—		(653		)	—
Interest rate swaps	(1,164		)	—		(2,532		)	—
Total	$	(910	)	$	—	$	(1,100	)	$	—

CPA®:17 – Global 9/30/2012 10-Q — 21

Notes to Consolidated Financial Statements

(a)	Includes gains attributable to noncontrolling interests of $0.1 million and $0.3 million for the three and nine months ended September 30, 2012, respectively, and losses of less than $0.1 million and $0.2 million for the three and nine months ended September 30, 2011, respectively.
(b)	The effective portion of the change in fair value and the settlement of these contracts are reported in the foreign currency translation adjustment section of Other comprehensive income until the underlying investment is sold, at which time we reclassify the gain or loss to earnings.
(c)	Gains (losses) reclassified from Other comprehensive income into income for contracts and collars that have matured are included in Other income and (expenses).

		Amount of Gain (Loss) Recognized in Income on Derivatives
Derivatives Not in Cash Flow	Location of Gain (Loss)	Three Months Ended September 30,						Nine Months Ended September 30,
Hedging Relationships	Recognized in Income	2012			2011			2012			2011
Interest rate swap (a)	Interest expense	$	(18	)	$	—		$	5		$	—
Foreign currency contracts	Other income and (expenses)	—			878			—			878
Foreign currency put options	Other income and (expenses)	—			—			(2		)	—
Stock warrants	Other income and (expenses)	(66		)		(264	)	(66		)		(198	)
Total		$	(84	)	$	614		$	(63	)	$	680

(a)Relates to the ineffective portion of the hedging relationship.

See below for information on our purposes for entering into derivative instruments and for information on derivative instruments owned by unconsolidated investments, which are excluded from the tables above.

Interest Rate Swaps and Cap

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 investment partners may obtain variable-rate non-recourse and limited 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. An interest rate cap limits 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 caps that we had outstanding on our consolidated investments at September 30, 2012 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	September 30, 2012
6-Month Euro Inter-bank offered rate (“Euribor”) (a)	“Pay-fixed” swap	$	211,226	4.2	%	9/2011	9/2016	$	(9,971	)
3-Month London Inter-bank offered rate (“LIBOR”) (b)	Interest rate cap	120,139		N/A		8/2009	8/2014	3
1-Month LIBOR	“Pay-fixed” swap	92,400		3.9	%	2/2012	2/2017	(2,842		)
3-Month LIBOR	“Pay-fixed” swap	25,896		6.6	%	1/2010	12/2019	(4,017		)
1-Month LIBOR	“Pay-fixed” swap	9,000		5.0	%	3/2012	3/2022	(467		)
3-Month Euribor (a)	“Pay-fixed” swap	7,555		5.8	%	7/2010	11/2017	(602		)
3-Month Euribor (a)	“Pay-fixed” swap	4,974		4.3	%	6/2012	5/2017	(158		)
1-Month LIBOR	“Pay-fixed” swap	4,490		4.6	%	6/2012	7/2022	(128		)
1-Month LIBOR	“Pay-fixed” swap	4,144		6.0	%	1/2011	1/2021	(579		)
1-Month LIBOR	“Pay-fixed” swap	1,600		4.8	%	12/2011	12/2021	(91		)
								$	(18,852	)

(a)Amounts are based upon the applicable exchange rate of the Euro at September 30, 2012.

CPA®:17 – Global 9/30/2012 10-Q — 22

Notes to Consolidated Financial Statements

(b)The applicable interest rate of the related debt was 2.96%, which was below the interest rate of the cap of 4.0% at September 30, 2012. The notional amount and fair value of $54.1 million and less than $0.1 million, respectively, attributable to noncontrolling interests is included in this swap.

Foreign Currency Contracts

We are exposed to foreign currency exchange rate movements, primarily in the Euro and, to a lesser extent, the 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. This reduces our overall exposure to the actual equity that we have invested and the equity portion of our cash flow. However, 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. Realized and unrealized gains and losses recognized in earnings related to foreign currency transactions are included in Other income and (expenses) in the consolidated financial statements.

In order to hedge certain of our foreign currency cash flow exposures, we enter into foreign currency forward contracts and collars. 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 forward contracts, we are locked into a future currency exchange rate for the term of the contract. A foreign currency collar consists of a written call option and a purchased put option to sell the foreign currency. These instruments lock the range in which the foreign currency exchange rate will fluctuate.

The following table presents the foreign currency derivative contracts we had outstanding and their designations at September 30, 2012 (dollars in thousands, except strike price):

	Notional		Strike		Effective	Expiration	Fair Value at
Type	Amount (a)		Price		Date	Date	September 30, 2012
Designated as Cash Flow Hedging Instruments
Collars	$	52,709	$	1.40 - 1.44	9/2011	12/2012 - 9/2014	$	4,592
Forward contracts	57,870		1.39		7/2011	7/2013	4,432
Forward contracts	39,253		1.34 - 1.35		9/2011	3/2013 - 3/2015	1,614
Forward contracts	72,916		1.28 - 1.29		5/2012	12/2014 - 6/2017	(293		)
	$	222,748					$	10,345

(a)Amounts reflect a Euro/U.S. dollar exchange rate of $1.2860 at September 30, 2012.

Stock Warrants

As part of the purchase of an interest in Hellweg 2 from CPA®:14 in May 2011, we acquired warrants from CPA®:14, which were granted by Hellweg 2 to CPA®:14, for a total cost of $1.6 million, which is based on the fair value of the warrants on the date of acquisition. These warrants give us participation rights to any distributions made by Hellweg 2. In addition, we are entitled to a cash distribution that equals a certain percentage of the liquidity event price of Hellweg 2, should a liquidity event occur. These warrants are defined as derivative instruments because they are readily convertible to cash and provide for net settlement upon conversion.

Other

Amounts reported in Other comprehensive income related to interest rate swaps will be reclassified to interest expense as interest payments are made on our variable-rate debt. Amounts reported in Other comprehensive income related to foreign currency contracts will be reclassified to Other income and (expenses) when the hedged foreign currency proceeds from foreign operations are repatriated to the U.S. At September 30, 2012, we estimate that an additional $6.7 million, inclusive of amounts attributable to noncontrolling interests of $0.5 million, and $2.6 million will be reclassified as interest expense and other income, respectively, during the next 12 months.

We measure our credit exposure on a counterparty basis as the net positive aggregate estimated fair value of our derivatives, net of collateral received, if any. No collateral was received as of September 30, 2012. At September 30, 2012, our total credit exposure and the maximum exposure to any single counterparty was $6.8 million, inclusive of noncontrolling interest.

CPA®:17 – Global 9/30/2012 10-Q — 23

Notes to Consolidated Financial Statements

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 September 30, 2012, 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 $20.0 million and $9.0 million at September 30, 2012 and December 31, 2011, respectively, which included accrued interest and any adjustment for nonperformance risk. If we had breached any of these provisions at either September 30, 2012 or December 31, 2011, we could have been required to settle our obligations under these agreements at their aggregate termination value of $21.9 million or $9.7 million, respectively.

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. While we believe our portfolio is reasonably well diversified, it does contain concentrations in excess of 10%, based on the percentage of our annualized contractual minimum base rent for the third quarter of 2012, in certain areas, as shown in the table below. The percentages in the table below represent our directly-owned real estate properties and do not include our pro rata share of equity investments or noncontrolling interests.

	September 30, 2012
Region:
New York	12	%
Other U.S.	51	%
Total U.S.	63	%
Italy	12	%
Other Europe	25	%
Total Europe	37	%
Total	100	%
Asset Type:
Office	30	%
Warehouse/Distribution	27	%
Retail	23	%
Industrial	14	%
All other	6	%
Total	100	%
Tenant Industry:
Retail	24	%
Media - Printing & Publishing	17	%
Grocery	14	%
All other	45	%
Total	100	%
Guarantor/Tenant:
Metro AG (Europe)	11	%
New York Times Company (U.S.)	11	%

There were no significant concentrations, individually or in the aggregate, related to our unconsolidated jointly-owned investments.

CPA®:17 – Global 9/30/2012 10-Q — 24

Notes to Consolidated Financial Statements

Note 10. Non-Recourse and Limited-Recourse Debt

During the nine months ended September 30, 2012, we obtained non-recourse mortgage financing totaling $214.8 million at a weighted-average annual interest rate and term of 4.6% and 7.9 years, respectively. Of the total:

·$155.8 million related to four domestic investments acquired during 2012;

·$45.2 million related to four domestic investments acquired during 2011; and

·$13.8 million related to two Polish investments acquired in 2011, based on the exchange rate of the Euro on the date of the financing.

Additionally, in connection with one of our self-storage investments during the nine months ended September 30, 2012, we assumed a non-recourse mortgage of $3.6 million.

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 approximately $2.1 billion at September 30, 2012. At September 30, 2012, our mortgage notes payable bore interest at fixed annual rates ranging from 3.6% to 8.0% and variable effective annual rates ranging from 3.0% to 6.6%, with maturity dates ranging from 2012 to 2031.

Scheduled debt principal payments during the remainder of 2012 and each of the next four calendar years following September 30, 2012 and thereafter are as follows (in thousands):

Years Ending December 31,	Total
2012 (remainder)	$	8,871
2013	33,467
2014	35,230
2015	65,005
2016	287,117
Thereafter through 2031	928,820
	1,358,510
Unamortized discount, net (a)	(780		)
Total	$	1,357,730

(a)Represents the unamortized discount on two notes.

Certain amounts in the table above are based on the applicable foreign currency exchange rate at September 30, 2012. Additionally, due to the strengthening of the U.S. dollar relative to foreign currencies, Non-recourse and limited-recourse debt decreased by $2.0 million from December 31, 2011 to September 30, 2012.

Note 11. 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.

Note 12. Income Taxes

We have elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code. 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 stockholders 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 the various states and municipalities within the U.S. and in 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. At September 30, 2012 and December 31, 2011, we had unrecognized tax benefits of $0.4 million and $0.6 million, respectively, that, if recognized, would have a

CPA®:17 – Global 9/30/2012 10-Q — 25

Notes to Consolidated Financial Statements

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 September 30, 2012 and December 31, 2011, we had less than $0.1 million of accrued interest related to uncertain tax positions.

Our tax returns are subject to audit by taxing authorities. Such audits can often take years to complete and settle. The tax years 2008 through 2012 remain open to examination by the major taxing jurisdictions to which we are subject.

We have elected to treat one of our corporate subsidiaries 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.

Note 13. Discontinued Operations

From time to time, tenants may vacate space due to lease buy-outs, elections not to renew their leases, insolvency or lease rejection in the bankruptcy process. In these cases, we assess whether we can obtain the highest value from the property by re-leasing or selling it. In addition, in certain cases, we may try to sell a property that is occupied. When it is appropriate to do so under current authoritative accounting guidance for the disposal of long-lived assets, we classify the property as an asset held for sale on our consolidated balance sheet and the current and prior period results of operations of the property are reclassified as discontinued operations.

The results of operations for properties that are held for sale or have been sold are reflected in the consolidated financial statements as discontinued operations for all periods presented and are summarized as follows (in thousands):

	Three Months Ended September 30,					Nine Months Ended September 30,
	2012		2011			2012			2011
Revenues	$	—	$	128		$	108		$	801
Expenses	—		(35		)	(23		)	(298		)
Gain on sale of real estate	—		—			740			787
Income from discontinued operations	$	—	$	93		$	825		$	1,290

2012 — During the three months ended March 31, 2012, we sold 12 domestic properties for a total cost of $12.7 million, net of selling costs, and recognized a net gain on the sales of the properties totaling $0.7 million.

2011 — During the six months ended June 30, 2011, we sold two Canadian properties for $19.8 million, net of selling costs, and recognized a net gain on the sale of $0.8 million. Amounts are based on the exchange rate of the Canadian dollar on the date of the sale.

CPA®:17 – Global 9/30/2012 10-Q — 26

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 2011 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 opportunities arise, we also make other types of commercial real estate related investments. 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. We hold substantially all of our assets and conduct substantially all of our business through our operating partnership. We are the general partner of, and own 99.985% of the interests in, the operating partnership. The remaining 0.015% interest in the Operating Partnership is held by a subsidiary of WPC.

Financial Highlights

(In thousands)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012			2011
Total revenues	$	69,365	$	49,115	$	203,890		$	136,151
Net income attributable to CPA®:17 – Global stockholders	12,295		10,304		37,684			35,582
Cash flow provided by operating activities					125,599			71,237
Cash flow used in investing activities					(417,369		)	(644,633		)
Cash flow provided by financing activities					601,461			552,825
Distributions paid	38,542		26,832		105,935			72,585
Supplemental financial measure:
Modified funds from operations	29,564		23,474		89,208			69,061

We consider the performance metrics listed above, including Modified funds from operations (“MFFO”), a supplemental measure that is not defined by GAAP (“non-GAAP”), 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 stockholders. See Supplemental Financial Measure below for our definition of this non-GAAP measure and reconciliation to its most directly comparable GAAP measure.

Total revenues and Cash flow from operating activities increased during the current year periods as compared to the same periods in 2011, primarily reflecting our investment activity during 2012 and 2011.

Net income attributable to CPA®:17 — Global stockholders increased for the three and nine months ended September 30, 2012 as compared to the same periods in 2011, primarily as a result of our investment activity during 2012 and 2011.

For the three and nine months ended September 30, 2012 as compared to the same periods in 2011, our MFFO supplemental measure increased, primarily as a result of our investment activity during 2012 and 2011.

Our daily cash distribution for the third quarter of 2012 was $0.0017663 per share, or $0.65 per share on an annualized basis; and was paid on October 16, 2012 to stockholders of record on each day during the third quarter. Our board of directors has declared that our daily cash distribution for the fourth quarter of 2012 will remain at $0.0017663 per share, or $0.65 per share on an annualized basis.

CPA®:17 – Global 9/30/2012 10-Q — 27

The daily distributions for the fourth quarter of 2012 will be paid in aggregate on or about January 15, 2013 to stockholders of record on each day during the fourth quarter.

Current Trends

General Economic Environment

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. Despite prior signs of economic stabilization in the U.S., we believe that a lack of political consensus with respect to U.S. and European fiscal policy has impacted investor and consumer confidence. It is not possible to predict with certainty the outcome of these trends. Nevertheless, our views of the effects of the current financial and economic trends on our business, as well as our response to those trends, are presented below.

Foreign Exchange Rates

We have foreign investments, primarily in Europe, and, as a result, are impacted by fluctuations in foreign currency exchange rates. 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. For the nine months ended September 30, 2012, our revenue denominated in Euro was $58.3 million. International investments carried on our balance sheet are marked to the spot exchange rate as of the balance sheet date. The U.S. dollar strengthened at September 30, 2012 versus the spot rate at December 31, 2011. The Euro/U.S. dollar exchange rate at September 30, 2012 was $1.286, a 0.7% decrease from the December 31, 2011 rate of $1.2950. This strengthening had an unfavorable impact on our balance sheet at September 30, 2012 as compared to our balance sheet at December 31, 2011.

The operational impact of currency fluctuations on our international investments is measured throughout the year. Due to the decline of the Euro to the U.S. dollar, the average rate we utilized to measure these operations decreased by 8.9% during the nine months ended September 30, 2012 versus the same period in 2011. This decrease had an unfavorable impact on our results of operations in the current year period as compared to the prior year period. See Item 3 for a discussion of our foreign currency hedges.

Capital Markets

Domestically, new issuances of CMBS debt and increasing capital inflows to both commercial real estate debt and equity markets helped increase the availability of mortgage financing and sustained transaction volume during the past few quarters. We continue to observe that the cost for domestic debt has declined while events in the Euro-zone have impacted the price and availability of financing in certain international markets and have affected global commercial real estate capitalization rates, which vary depending on a variety of factors, including asset quality, tenant credit quality, geography and lease term.

Investment Opportunities

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

We continue to see investment opportunities that we believe will allow us to enter into transactions on favorable terms. Although capitalization rates continue to vary widely, we believe that the investment environment remains attractive and that we will be able to achieve attractive risk-adjusted returns. We have benefited from commercial de-leveraging and recent new construction activity that has provided attractive investment opportunities for net lease investors such as ourselves. While the investment community continues to remain risk averse, we have experienced increased competition for investments, both domestically and internationally. We believe this is because the net lease financing market is perceived as a relatively conservative investment vehicle, 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. In addition, we expect to continue to expand our ability to source deals in new markets.

We entered into investments totaling approximately $415.9 million during the nine months ended September 30, 2012, a decrease of $563.4 million over the prior year period due to lower investment volume in the current period. 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 internationally through the near term. International investments comprised 8% (on a pro rata basis) of total investments structured during the nine months ended September 30, 2012. While international activity fluctuates from quarter to quarter, we currently expect that such transactions will continue to form a significant portion of our investments, although the relative portion of international investments in any given period will vary.

CPA®:17 – Global 9/30/2012 10-Q — 28

We calculate net operating income for each investment we make as the rent that we receive from a tenant, less debt service for any financing obtained for our investment in such property. The capitalization rate for an investment is a function of the purchase price that we are willing to pay for an investment, the rent that the tenant is willing to pay and the risk we are willing to assume. In our target markets, we have recently seen capitalization rates in the U.S. ranging from 6% to 12% in the U.S. and internationally. The variability is due largely to the quality of the underlying assets, tenant credit quality, and the terms of the leases and their geographic markets. Additionally, we have observed that capitalization rates for commoditized transactions are within the lower end of these ranges while the higher end is comprised of off-market deals requiring specialized knowledge.

Financing Conditions

We are impacted by the cost and availability of financing. Stabilization in the U.S. credit and real estate financing markets has resulted in lower costs for domestic financing while the ongoing sovereign debt issues in Europe have had the impact of increasing the cost of debt in certain international markets and made it more challenging for us to obtain debt for certain international deals. During the nine months ended September 30, 2012, we obtained non-recourse mortgage financing totaling $214.8 million.

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. These fundamentals remain at risk of deteriorating further in Europe, which may result in higher vacancies, lower rental rates, and lower demand for vacant space in future periods related to international properties. 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 estimated net asset value per share (“NAV”) 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.

Despite the apparent stabilization in domestic general business conditions over the past few quarters, which had a favorable impact on the overall credit quality of our tenants, we believe that there still remain significant risks to an economic recovery in the Euro-zone and its impact on the global economy. As of the date of this Report, we have no significant exposure to tenants operating under bankruptcy protection. It is possible, however, that tenants may file for bankruptcy or default on their leases in the future and that economic conditions may again deteriorate.

To mitigate credit risk, we have historically looked to invest in assets that we believe are critically important to our tenants’ 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

Inflation impacts our lease revenues because 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. We have seen relatively low inflation in the U.S. during the past few quarters.

CPA®:17 – Global 9/30/2012 10-Q — 29

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 generally begins discussing options with tenants in advance of scheduled lease expirations. 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 September 30, 2012 and December 31, 2011, reflecting a portfolio of primarily new tenants.

Investor Capital Inflows

We are currently in our offering period and our ability to acquire assets and maintain portfolio diversification depends on our ability to raise funds.

During the third quarter, investor capital inflows for non-listed REITs overall increased 9.3% compared to the prior quarter. During the second and third quarters of 2012, we raised $186.0 million and $179.2 million, respectively, reflecting a decrease of 3.7%. Since inception through the termination of our initial public offering on April 7, 2011, we raised a total of more than $1.5 billion. From the beginning of our follow-on offering on April 7, 2011 through September 30, 2012, we have raised an additional $960.5 million (Note 1).

Results of Operations

The results of operations presented below for the three and nine months ended September 30, 2012 are not expected to be representative of future results because we anticipate that our asset base will increase 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 revenues (in thousands):

	Nine Months Ended September 30,
	2012		2011
Rental income	$	127,253	$	85,401
Interest income from direct financing leases	40,003		36,319
	$	167,256	$	121,720

CPA®:17 – Global 9/30/2012 10-Q — 30

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):

	Nine Months Ended September 30,
Lessee (Date Acquired or Placed in Service)	2012		2011
Metro Cash & Carry Italia S.p.A. (9/2011) (a)	$	21,781	$	252
The New York Times Company (3/2009) (b)	20,600		20,869
General Parts Inc., Golden State Supply LLC, Straus-Frank Enterprises LLC, General Parts Distribution LLC and Worldpac Inc., collectively “CARQUEST” (12/2010)	14,477		14,428
Agrokor d.d. (11/2011, 12/2010, 4/2010) (a)	14,404		11,924
Blue Cross and Blue Shield of Minnesota, Inc. (1/2012)	9,692		—
Terminal Freezers, LLC (1/2011)	7,732		7,899
Eroski Sociedad Cooperativa (6/2010, 2/2010, 12/2009) (a)	7,630		8,223
DTS Distribuidora de Television Digital SA (12/2010) (a)	6,544		6,966
LifeTime Fitness, Inc. (9/2008)	5,136		5,134
Flanders Corporation (12/2011, 4/2011)	4,939		2,744
Flint River Services, LLC (11/2010)	3,804		3,805
Angelica Corporation (3/2010)	3,780		3,745
Frontier Spinning Mills, Inc. (12/2008) (b)	3,420		3,375
The Sun Products Corp (9/2011)	3,380		—
McKesson Corporation (formerly US Oncology, Inc.) (12/2009)	3,141		3,142
BPS Partners, LLC (2/2012)	2,997		—
JP Morgan Chase Bank, National Association and AT&T Wireless Services (5/2010)	2,997		2,950
Actebis Peacock GmbH (7/2008) (a)	2,973		3,190
Kronos Products, Inc. (1/2010)	2,904		2,867
Wagon Automotive Nagold GmbH (8/2008) (a)(c)	2,806		2,013
Harbor Freight Tools, USA, Inc. (3/2011) (c)	2,525		1,908
Sabre Communications Corporation and Cellxion, LLC (3/2012, 6/2010, 8/2008)	2,401		2,123
Laureate Education, Inc. (7/2008)	2,224		2,179
TDG Limited (5/2010, 4/2010)	2,160		2,105
Mori Seiki USA, Inc. (12/2009)	2,108		2,108
Berry Plastics Corporation (4/2011, 3/2010)	2,090		1,849
National Express Limited (12/2009)	1,598		1,565
Other (a)(b)	7,013		4,357
	$	167,256	$	121,720

(a)	Amounts are subject to fluctuations in foreign currency exchange rates. The average conversion rate for the U.S. dollar in relation to the Euro during the nine months ended September 30, 2012 decreased by approximately 8.9% in comparison to the same period in 2011, resulting in a negative impact on lease revenues for our Euro-denominated investments in the current year period.
(b)	These revenues are generated in consolidated investments, generally with our affiliates, and on a combined basis, include revenues applicable to noncontrolling interests totaling $12.3 million and $12.4 million for the nine months ended September 30, 2012 and 2011, respectively.
(c)	This increase was due to a CPI-based rent increase.

CPA®:17 – Global 9/30/2012 10-Q — 31

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 these investments from both continuing and discontinued operations. Amounts provided are the total amounts attributable to the investments and do not represent our proportionate share (dollars in thousands):

	Ownership Interest		Nine Months Ended September 30,
Lessee (Date Acquired)	at September 30, 2012		2012		2011
Hellweg Die Profi-Baumarkte GmbH & Co. KG (5/2011) (a)(b)	33	%	$	25,780	$	15,648
U-Haul Moving Partners, Inc. and Mercury Partners, LP (5/2011) (b)	12	%	24,276		13,484
C1000 Logistiek Vastgoed B.V. (1/2011) (a)	85	%	10,773		10,946
Tesco plc (7/2009) (a)	49	%	5,379		5,802
Berry Plastics Corporation (12/2007) (c)	50	%	5,240		4,968
Dick’s Sporting Goods, Inc. (5/2011) (b)	45	%	2,486		1,309
Eroski Sociedad Cooperativa - Mallorca (6/2010) (a)	30	%	2,235		2,452
			$	76,169	$	54,609

(a)	Amounts are subject to fluctuations in foreign currency exchange rates. The average conversion rate for the U.S. dollar in relation to the Euro during the nine months ended September 30, 2012 decreased by approximately 8.9% in comparison to the same period in 2011, resulting in a negative impact on lease revenues for our Euro-denominated investments in the current year period.
(b)	We acquired our interest in this venture in May 2011 from CPA®:14 (Note 3).
(c)	We also consolidate an investment with one of our affiliates that leases another property to this lessee.

Lease Revenues

As of September 30, 2012, 51% of our net leases, based on annualized contractual minimum base rent, provide for adjustments based on formulas indexed to changes in the CPI, or other similar indices for the jurisdiction in which the property is located, some of which have caps and/or floors. In addition, 42% of our net leases on that same basis have fixed rent adjustments with contractual minimum base rent scheduled to increase by an average of 2% in the next 12 months. We own international investments and, therefore, lease revenues from these investments are subject to fluctuations in exchange rate movements in foreign currencies, primarily the Euro.

During the three months ended September 30, 2012, we signed 12 new leases totaling approximately 1.3 million square feet with new tenants and we did not modify any existing leases. The average new rent for these leases was $10.24 per square foot. There were no tenant improvement allowances or concessions related to any of these leases.

During the nine months ended September 30, 2012, we signed 21 leases totaling approximately 5.0 million square feet of leased space. Of these leases, 16 were with new tenants and five were lease modifications with existing tenants. The average new rent for these leases was $7.86 per square foot and the average former rent was $4.33 per square foot. There were no tenant improvement allowances or concessions related to any of these leases.

For the three and nine months ended September 30, 2012 as compared to the same periods in 2011, lease revenues increased by $15.3 million and $45.5 million, respectively, primarily due to our investment activity during 2012 and 2011, which contributed revenues of $14.6 million and $45.4 million, respectively. These increases were partially offset by fluctuations in foreign currency exchange rates, which reduced lease revenues by $1.4 million and $3.1 million, respectively.

Other Real Estate Operations

Other real estate operations represent the results of operations (revenues and operating expenses) of our hotel investment and 51 self-storage properties. For the three and nine months ended September 30, 2012 as compared to the same periods in 2011, Other real estate income increased by $4.4 million and $22.1 million, respectively, and Other real expenses increased by $2.9 million and $13.7 million, respectively. The increases were primarily due to the acquisition of 44 self-storage properties during the second, third, and fourth quarters of 2011, one hotel property during the fourth quarter of 2011, and seven self-storage properties during the second and third quarters of 2012.

CPA®:17 – Global 9/30/2012 10-Q — 32

Depreciation and Amortization

For the three and nine months ended September 30, 2012 as compared to the same periods in 2011, depreciation and amortization increased by $6.3 million and $20.8 million, respectively, as a result of investments we entered into during 2012 and 2011.

General and Administrative

For the three months ended September 30, 2012 as compared to the same period in 2011, general and administrative expense decreased by $0.3 million, primarily due to acquisition-related fees of $1.0 million related to the acquisition of self-storage properties and $0.4 million related to the allowance for bad debts for three non-performing CMBS securities during 2011, partially offset by increases of $0.5 million for both professional expenses and management expenses in the current year period. Professional fees include legal, accounting and investor-related expenses, and transfer agent fees 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.

For the nine months ended September 30, 2012 as compared to the same period in 2011, general and administrative expense increased by $1.3 million, primarily due to increases of $3.0 million and $1.8 million in professional fees and management expenses, respectively. These increases were partially offset by a decrease in acquisition-related fees due to $3.7 million of fees related to the acquisition of 44 self-storage properties acquired during 2011.

Property Expenses

For the three and nine months ended September 30, 2012 as compared to the same periods in 2011, property expenses increased by $2.9 million and $8.8 million, respectively, primarily due to increases in asset management fees of $1.6 million and $4.9 million, respectively, as a result of 2012 and 2011 investment volume, which increased the asset base from which the advisor earns a fee. In addition, other property expenses increased by $0.7 million and $2.4 million, respectively, as a result of investments we entered into in 2012 and 2011.

Impairment Charges

During the nine months ended September 30, 2012, we incurred other-than-temporary impairment charges of $2.0 million to reduce the carrying values of three CMBS tranches to zero as a result of non-performance and the advisor’s assessment that the likelihood of receiving further interest payments or return of principal was remote.

Income from Equity Investments in Real Estate

Income from equity investments in real estate represents our proportionate share of net income or loss (revenue less expenses) from investments entered into with affiliates or third parties in which we have a noncontrolling interest but over which we exercise significant influence.

For the three months ended September 30, 2012 as compared to the same period in 2011, income from equity investments in real estate decreased by $0.3 million primarily due to a change in foreign trade tax expense related to Hellweg 2, one of the jointly-owned investments we acquired in May 2011 from CPA®:14.

For the nine months ended September 30, 2012 as compared to the same period in 2011, income from equity investments in real estate increased by $1.3 million primarily due to our $1.9 million share of a gain on the extinguishment of debt recognized by a jointly-owned investment and an increase in income of $1.1 million related to the jointly-owned investments we acquired in May 2011 from CPA®:14, partially offset by an increase of $1.6 million recognized on those investments due to the amortization of basis differences on the related properties during the current year period.

Other Income and (Expenses)

Other income and (expenses) primarily consists of gains and losses on foreign currency transactions and derivative instruments. We and certain of our foreign consolidated subsidiaries have intercompany debt and/or advances that are not denominated in the entity’s functional currency. When the intercompany debt or accrued interest thereon is remeasured against the functional currency of the entity, a gain or loss may result. For intercompany transactions that are of a long-term investment nature, the gain or loss is recognized as a cumulative translation adjustment in Other comprehensive income or loss. We also recognize gains or losses on foreign currency

CPA®:17 – Global 9/30/2012 10-Q — 33

transactions when we repatriate cash from our foreign investments. In addition, we have certain derivative instruments, including common stock warrants and foreign currency contracts that are not designated as hedging, for which realized and unrealized gains and losses are included in earnings. The timing and amount of such gains and losses cannot always be estimated and are subject to fluctuation.

For the three and nine months ended September 30, 2012, net Other income increased by $0.4 million and $1.6 million, respectively, compared to the same periods in 2011, primarily due to interest income recognized on higher cash balances.

Interest Expense

For the three and nine months ended September 30, 2012 as compared to the same periods in 2011, interest expense increased by $5.4 million and $16.9 million, respectively, primarily as a result of mortgage financing obtained and assumed in connection with our investment activity during 2012 and 2011.

Discontinued Operations

During the nine months ended September 30, 2012, we recognized income from discontinued operations of $0.8 million primarily due to a net gain on the sale of properties of $0.7 million.

During the nine months ended September 30, 2011, we recognized income from discontinued operations of $1.3 million, primarily due to a net gain on the sale of properties of $0.8 million and income generated from the operations of these properties of $0.5 million. Amounts are based on the exchange rate of the Canadian dollar on the date of the sale.

Net Income Attributable to Noncontrolling Interests

For the three and nine months ended September 30, 2012 as compared to the same periods in 2011, net income attributable to noncontrolling interests increased by $2.0 million and $5.1 million, respectively, primarily due to an increase in cash distributions paid to the advisor as a result of our 2012 and 2011 investment activity. As discussed in Note 3 to the consolidated financial statements, the advisor owns a special general partner interest in our operating partnership entitling it to up to 10% of the Available Cash of our operating partnership.

Net Income Attributable to CPA®:17 — Global Stockholders

For the three and nine months ended September 30, 2012 as compared to the same periods in 2011, the resulting net income attributable to CPA®:17 — Global stockholders increased by $2.0 million and $2.1 million, respectively.

Modified Funds from Operations

MFFO is a non-GAAP measure that we use to evaluate our business. For a definition of MFFO and reconciliation to net income attributable to CPA®:17 — Global stockholders, see Supplemental Financial Measures below. For the three and nine months ended September 30, 2012 as compared to the same periods in 2011, MFFO increased by $6.1 million and $20.1 million, respectively, primarily as a result of our investment activity during 2012 and 2011.

Financial Condition

Sources and Uses of Cash During the Period

We expect to continue to invest the proceeds of our public offerings in a diversified portfolio of income-producing commercial properties and other real estate related assets. We use the cash flow generated from our investments to meet our operating expenses, service debt and fund distributions to our stockholders. Our cash flows 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 the receipt of the proceeds from and the repayment of non-recourse and limited-recourse mortgage loans and receipt of lease revenues, the advisor’s annual election to receive fees in shares of our common stock or cash, the timing and characterization of distributions received from equity investments in real estate, the timing of payments of distributions of available cash to the advisor, and changes in foreign currency exchange rates. Despite these fluctuations, 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 normal recurring short-term and long-term liquidity needs. However, until we have fully invested the proceeds of our offerings, we have used, and expect in the future to use a portion of

CPA®:17 – Global 9/30/2012 10-Q — 34

the offering proceeds to fund our operating activities and distributions to our stockholders (see Financing Activities below). We assess our ability to access capital on an ongoing basis. Our sources and uses of cash during the period are described below.

Operating Activities

During the nine months ended September 30, 2012, we used cash flows provided by operating activities of $125.6 million to fund cash distributions paid to our stockholders of $54.6 million, excluding $51.3 million in dividends that were reinvested in shares of our common stock by stockholders through our DRIP, and to pay distributions of $17.4 million to affiliates that hold noncontrolling interests in various entities with us. For 2012, the advisor has elected to continue to receive its asset management fees in shares of our common stock, and as a result, we paid asset management fees of $15.4 million through the issuance of 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 nine months ended September 30, 2012, we used offering proceeds of $402.6 million primarily to acquire several consolidated investments and to fund construction costs on several build-to-suit projects (Note 4). We contributed $7.9 million to a jointly-owned investment, Hellweg 2, to repurchase a portion of its outstanding mortgage loan. We received $10.4 million in distributions from our equity investments in real estate in excess of cumulative equity in net income and proceeds of $12.7 million from the sale of 12 domestic properties. Funds totaling $34.5 million and $24.4 million, respectively, were invested in and released from lender-held investment accounts. We recovered $2.7 million of foreign VAT during the nine months ended September 30, 2012, including amounts paid in prior years. Payments of deferred acquisition fees to the advisor totaled $11.9 million. We also used $7.1 million to acquire equity securities in a warehouse and logistics company (Note 8).

Financing Activities

As noted above, during the nine months ended September 30, 2012, we received $526.2 million in net proceeds from our follow-on public offering and $214.8 million in proceeds from mortgage financings related to 2012 and 2011 investment activity, primarily including $92.4 million obtained in connection with the BCBS acquisition and $37.8 million obtained in connection with the RML acquisition. We paid distributions to our stockholders and to affiliates that hold noncontrolling interests in various entities with us. We also made scheduled mortgage principal installments of $13.1 million. We also used $12.2 million to repurchase shares through our redemption plan, as described below.

Our objectives are to generate sufficient cash flow over time to provide our stockholders with increasing distributions and to seek investments with potential for capital appreciation throughout varying economic cycles. During the nine months ended September 30, 2012, we declared distributions to our stockholders totaling $115.4 million, which were comprised of cash distributions of $59.7 million and $55.7 million of distributions reinvested by stockholders through the DRIP. 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.

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 stockholders seeking liquidity. During the nine months ended September 30, 2012, we redeemed 1,294,681 shares of our common stock pursuant to our redemption plan at a weighted-average price of $9.42 per share. For the three months ended September 30, 2012, we received requests to redeem 611,671 shares of our common stock pursuant to our redemption plan, all of which were redeemed during the current period except for 20,000 of these shares that were redeemed in the following quarter.

Liquidity is 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. 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 from financings or refinancings of additional properties.

CPA®:17 – Global 9/30/2012 10-Q — 35

Summary of Financing

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

	September 30, 2012			December 31, 2011
Balance
Fixed rate	$	869,608		$	772,259
Variable rate (a)	488,122			381,995
Total	$	1,357,730		$	1,154,254
Percent of total debt
Fixed rate	64		%	67		%
Variable rate (a)	36		%	33		%
	100		%	100		%
Weighted-average interest rate at end of period
Fixed rate	6.0		%	6.1		%
Variable rate (a)	4.0		%	4.0		%

(a) Variable-rate debt at September 30, 2012 consisted of (i) $361.3 million that was effectively converted to fixed-rate debt through interest rate swap derivative instruments, (ii) $120.1 million that was subject to an interest rate cap, but for which the applicable interest rate was below the interest rate of the cap at September 30, 2012, and (iii) $6.7 million in mortgage loan obligations that bore interest at fixed rates but have interest rate reset features that may change the interest rates to then-prevailing market fixed rates at certain points during their term.

Cash Resources

At September 30, 2012, our cash resources consisted of cash and cash equivalents totaling $490.7 million. Of this amount, $51.6 million, at then-current exchange rates, was held in foreign subsidiaries, 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 $372.7 million at September 30, 2012, although there can be no assurance that we would be able to obtain financing for these properties. We expect to continue to receive funds raised in our follow-on offering through the closing of that offering, which is currently anticipated to occur on or before January 18, 2013. Our cash resources may be used for future investments, and can be used for working capital needs and other commitments.

Cash Requirements

During the next 12 months, we expect that cash payments will include paying distributions to our stockholders and to our affiliates that hold noncontrolling interests in entities we control, making scheduled mortgage loan principal payments, reimbursing the advisor for costs incurred on our behalf, and paying normal recurring operating expenses. Balloon payments on our mortgage loan obligations totaling $4.5 million will be due during the next 12 months. In addition, our share of balloon payments due during the next 12 months on our unconsolidated jointly-owned investments totals $77.1 million. We expect to continue to use funds raised from our follow-on offering to invest in new properties through the closing of that offering, which is currently anticipated to occur on or before January 18, 2013.

CPA®:17 – Global 9/30/2012 10-Q — 36

Off-Balance Sheet Arrangements and Contractual Obligations

The table below summarizes our debt, off-balance sheet arrangements and other contractual obligations at September 30, 2012 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)	$	1,358,510	$	24,205	$	113,040	$	489,375	$	731,890
Deferred acquisition fees	18,576		11,735		6,841		—		—
Interest on borrowings and deferred acquisition fees	442,056		72,233		136,910		111,841		121,072
Subordinated disposition fees (b)	202		—		—		—		202
Capital commitments (c)	59,143		43,619		15,524		—		—
Operating and other lease commitments (d)	12,437		1,798		3,650		2,954		4,035
	$	1,890,924	$	153,590	$	275,965	$	604,170	$	857,199

(a)	Excludes $0.8 million of unamortized discount on two notes, which was included in Non-recourse and limited-recourse debt at September 30, 2012.
(b)	Payable to the advisor, subject to meeting contingencies, in connection with any liquidity event for our stockholders. There can be no assurance that any liquidity event will be achieved in this time frame.
(c)	Capital commitments relate to two current build-to-suit projects, three build-to-suit projects that had been placed into service as of September 30, 2012, and two projects with other capital commitments. As of September 30, 2012, the total estimated construction costs were $229.1 million in the aggregate, of which $170.0 million had been completed at that date. Amounts are based on the exchange rate of the Euro at September 30, 2012, as applicable.
(d)	Operating and other lease commitments consist of rental obligations under ground leases and our share of future minimum rents payable under an office cost-sharing agreement with certain affiliates for the purpose of leasing office space used for the administration of real estate entities as well as future minimum rents payable under a lease executed in June 2010 (denominated in British Pound Sterling) in conjunction with an investment in the United Kingdom. Amounts under the cost-sharing agreement are allocated among the entities based on gross revenues and are adjusted quarterly. We anticipate that our share of future minimum lease payments will increase as we continue to invest the proceeds of our follow-on offering.

Amounts in the table above related to our foreign operations are based on the exchange rate of the local currencies at September 30, 2012, which consisted primarily of the Euro. At September 30, 2012, we had no material capital lease obligations for which we were the lessee, either individually or in the aggregate.

Equity Investments

We have investments in unconsolidated investments that own single-tenant properties net leased to corporations. Generally, the underlying investments are jointly-owned with our affiliates. Summarized financial information for these investments and our ownership interest in the investments at September 30, 2012 is presented below. Summarized financial information provided represents the total amounts recorded by the investees and does not represent our proportionate share (dollars in thousands):

	Ownership Interest				Total Third-
Lessee	at September 30, 2012		Total Assets		Party Debt		Maturity Date
C1000 Logistiek Vastgoed B.V. (a)	85	%	$	188,600	$	90,663	3/2013
U-Haul Moving Partners, Inc. and Mercury Partners, LP	12	%	281,392		152,307		5/2014
Tesco plc (a)	49	%	80,886		42,521		6/2016
Hellweg Die Profi-Baumarkte GmbH & Co. KG (a)	33	%	417,965		321,086		4/2017
Berry Plastics Corporation	50	%	74,514		27,579		6/2020
Dick’s Sporting Goods, Inc.	45	%	26,217		21,244		1/2022
Eroski Sociedad Cooperativa - Mallorca (a)	30	%	29,892		—		N/A
			$	1,099,466	$	655,400

CPA®:17 – Global 9/30/2012 10-Q — 37

(a) Dollar amounts shown are based on the exchange rate of the Euro at September 30, 2012.

Supplemental Financial Measures

In the real estate industry, analysts and investors employ certain non-GAAP supplemental financial measures in order to facilitate meaningful comparisons between periods and among peer companies. Additionally, in the formulation of our goals and in the evaluation of the effectiveness of our strategies, we employ the use of supplemental non-GAAP measures, which are uniquely defined by our management. We believe these measures are useful to investors to consider because they may assist them to better understand and measure the performance of our business over time and against similar companies. A description of these non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures are provided below.

Funds from Operations (“FFO”) and Modified Funds from Operations (“MFFO”)

Due to certain unique operating characteristics of real estate companies, as discussed below, the National Association of Real Estate Investment Trusts, Inc., or (“NAREIT”), an industry trade group, has promulgated a measure known as funds from operations, which we believe to be an appropriate supplemental measure to reflect the operating performance of a REIT. The use of FFO is recommended by the REIT industry as a supplemental performance measure. FFO is not equivalent to nor a substitute for net income or loss as determined under GAAP.

We define FFO, a non-GAAP measure, consistent with the standards established by the White Paper on FFO approved by the Board of Governors of NAREIT, as revised in February 2004, or the White Paper. The White Paper defines FFO as net income or loss computed in accordance with GAAP, excluding gains or losses from sales of property, impairment charges on real estate and depreciation and amortization; and after adjustments for unconsolidated partnerships and jointly-owned investments. Adjustments for unconsolidated partnerships and jointly-owned investments are calculated to reflect FFO. Our FFO calculation complies with NAREIT’s policy described above.

The historical accounting convention used for real estate assets requires straight-line depreciation of buildings and improvements, which implies that the value of real estate assets diminishes predictably over time, especially if such assets are not adequately maintained or repaired and renovated as required by relevant circumstances and/or is requested or required by lessees for operational purposes in order to maintain the value disclosed. We believe that, since real estate values historically rise and fall with market conditions, including inflation, interest rates, the business cycle, unemployment and consumer spending, presentations of operating results for a REIT using historical accounting for depreciation may be less informative. Historical accounting for real estate involves the use of GAAP. Any other method of accounting for real estate such as the fair value method cannot be construed to be any more accurate or relevant than the comparable methodologies of real estate valuation found in GAAP. Nevertheless, we believe that the use of FFO, which excludes the impact of real estate-related depreciation and amortization as well as impairment charges of real estate-related assets, provides a more complete understanding of our performance to investors and to management, and when compared year over year, reflects the impact on our operations from trends in occupancy rates, rental rates, operating costs, general and administrative expenses, and interest costs, which may not be immediately apparent from net income. In particular, we believe it is appropriate to disregard impairment charges, as this is a fair value adjustment that is largely based on market fluctuations and assessments regarding general market conditions which can change over time. An asset will only be evaluated for impairment if certain impairment indications exist and if the carrying, or book value, exceeds the total estimated undiscounted future cash flows (including net rental and lease revenues, net proceeds on the sale of the property, and any other ancillary cash flows at a property or group level under GAAP) from such asset. Investors should note, however, that determinations of whether impairment charges have been incurred are based partly on anticipated operating performance, because estimated undiscounted future cash flows from a property, including estimated future net rental and lease revenues, net proceeds on the sale of the property, and certain other ancillary cash flows, are taken into account in determining whether an impairment charge has been incurred. While impairment charges are excluded from the calculation of FFO described above, investors are cautioned that, due to the fact that impairments are based on estimated future undiscounted cash flows and the relatively limited term of our operations, it could be difficult to recover any impairment charges. However, FFO and MFFO, as described below, should not be construed to be more relevant or accurate than the current GAAP methodology in calculating net income or in its applicability in evaluating the operating performance of the company. The method utilized to evaluate the value and performance of real estate under GAAP should be construed as a more relevant measure of operational performance and considered more prominently than the non-GAAP FFO and MFFO measures and the adjustments to GAAP in calculating FFO and MFFO.

Changes in the accounting and reporting promulgations under GAAP (for acquisition fees and expenses from a capitalization/depreciation model to an expensed-as-incurred model) were put into effect in 2009. These other changes to GAAP accounting for real estate subsequent to the establishment of NAREIT’s definition of FFO have prompted an increase in cash-settled

CPA®:17 – Global 9/30/2012 10-Q — 38

expenses, specifically acquisition fees and expenses for all industries as items that are expensed under GAAP, that are typically accounted for as operating expenses. Management believes these fees and expenses do not affect our overall long-term operating performance. Publicly registered, non-listed REITs typically have a significant amount of acquisition activity and are substantially more dynamic during their initial years of investment and operation. While other start-up entities may also experience significant acquisition activity during their initial years, we believe that non-listed REITs are unique in that they have a limited life with targeted exit strategies within a relatively limited time frame after acquisition activity ceases. As disclosed in the prospectus for our follow-on offering dated April 7, 2011 (the “Prospectus”), we intend to begin the process of achieving a liquidity event (i.e., listing of our common stock on a national exchange, a merger or sale of our assets or another similar transaction) within eight to 12 years following the investment of substantially all of the net proceeds from our initial public offering, which was terminated in April 2011. Thus, we do not intend to continuously purchase assets and intend to have a limited life. Due to the above factors and other unique features of publicly registered, non-listed REITs, the Investment Program Association (“IPA”), an industry trade group, has standardized a measure known as MFFO, which the IPA has recommended as a supplemental measure for publicly registered non-listed REITs and which we believe to be another appropriate supplemental measure to reflect the operating performance of a non-listed REIT having the characteristics described above. MFFO is not equivalent to our net income or loss as determined under GAAP, and MFFO may not be a useful measure of the impact of long-term operating performance on value if we do not continue to operate with a limited life and targeted exit strategy, as currently intended. We believe that, because MFFO excludes costs that we consider more reflective of investing activities and other non-operating items included in FFO and also excludes acquisition fees and expenses that affect our operations only in periods in which properties are acquired, MFFO can provide, on a going forward basis, an indication of the sustainability (that is, the capacity to continue to be maintained) of our operating performance after the period in which we are acquiring properties and once our portfolio is in place. By providing MFFO, we believe we are presenting useful information that assists investors and analysts to better assess the sustainability of our operating performance after our offering has been completed and once all of our properties have been acquired. We also believe that MFFO is a recognized measure of sustainable operating performance by the non-listed REIT industry. Further, we believe MFFO is useful in comparing the sustainability of our operating performance after our offering and most of our acquisitions are completed with the sustainability of the operating performance of other real estate companies that are not as involved in acquisition activities. Investors are cautioned that MFFO should only be used to assess the sustainability of a company’s operating performance after a company’s offering has been completed and properties have been acquired, as it excludes acquisition costs that have a negative effect on a company’s operating performance during the periods in which properties are acquired.

We define MFFO, a non-GAAP measure, consistent with the IPA’s Guideline 2010-01, Supplemental Performance Measure for Publicly Registered, Non-Listed REITs: Modified Funds from Operations, or the Practice Guideline, issued by the IPA in November 2010. The Practice Guideline defines MFFO as FFO further adjusted for the following items, as applicable, included in the determination of GAAP net income: acquisition fees and expenses; amounts relating to deferred rent receivables and amortization of above and below market leases and liabilities (which are adjusted in order to reflect such payments from a GAAP accrual basis to a cash basis of disclosing the rent and lease payments); accretion of discounts and amortization of premiums on debt investments; nonrecurring impairments of real estate-related investments (i.e., infrequent or unusual, not reasonably likely to recur in the ordinary course of business); mark-to-market adjustments included in net income; nonrecurring gains or losses included in net income from the extinguishment or sale of debt, hedges, foreign exchange, derivatives or securities holdings where trading of such holdings is not a fundamental attribute of the business plan, unrealized gains or losses resulting from consolidation from, or deconsolidation to, equity accounting, and after adjustments for consolidated and unconsolidated partnerships and jointly-owned investments, with such adjustments calculated to reflect MFFO on the same basis. The accretion of discounts and amortization of premiums on debt investments, nonrecurring unrealized gains and losses on hedges, foreign exchange, derivatives or securities holdings, unrealized gains and losses resulting from consolidations, as well as other listed cash flow adjustments are adjustments made to net income in calculating the cash flows provided by operating activities and, in some cases, reflect gains or losses which are unrealized and may not ultimately be realized. While we are responsible for managing interest rate, hedge and foreign exchange risk, we retain an outside consultant to review all our hedging agreements. Inasmuch as interest rate hedges are not a fundamental part of our operations, we believe it is appropriate to exclude such infrequent gains and losses in calculating MFFO, as such gains and losses are not reflective of on-going operations.

Our MFFO calculation complies with the IPA’s Practice Guideline described above. In calculating MFFO, we exclude acquisition-related expenses, amortization of above- and below-market leases, fair value adjustments of derivative financial instruments, deferred rent receivables and the adjustments of such items related to noncontrolling interests. Under GAAP, acquisition fees and expenses are characterized as operating expenses in determining operating net income. These expenses are paid in cash by a company. All paid and accrued acquisition fees and expenses will have negative effects on returns to investors, the potential for future distributions, and cash flows generated by the company, unless earnings from operations or net sales proceeds from the disposition of other properties are generated to cover the purchase price of the property, these fees and expenses and other costs related to such property. Further, under GAAP, certain contemplated non-cash fair value and other non-cash adjustments are considered operating non-cash adjustments to net

CPA®:17 – Global 9/30/2012 10-Q — 39

income in determining cash flow from operating activities. In addition, we view fair value adjustments of derivatives and gains and losses from dispositions of assets as infrequent items or items which are unrealized and may not ultimately be realized, and which are not reflective of on-going operations and are therefore typically adjusted for assessing operating performance.

Our management uses MFFO and the adjustments used to calculate it in order to evaluate our performance against other non-listed REITs which have limited lives with short and defined acquisition periods and targeted exit strategies shortly thereafter. As noted above, MFFO may not be a useful measure of the impact of long-term operating performance on value if we do not continue to operate in this manner. We believe that our use of MFFO and the adjustments used to calculate it allow us to present our performance in a manner that reflects certain characteristics that are unique to non-listed REITs, such as their limited life, limited and defined acquisition period and targeted exit strategy, and hence that the use of such measures is useful to investors. For example, acquisition costs are generally funded from the proceeds of our offering and other financing sources and not from operations. By excluding expensed acquisition costs, the use of MFFO provides information consistent with management’s analysis of the operating performance of the properties. Additionally, fair value adjustments, which are based on the impact of current market fluctuations and underlying assessments of general market conditions, but can also result from operational factors such as rental and occupancy rates, may not be directly related or attributable to our current operating performance. By excluding such changes that may reflect anticipated and unrealized gains or losses, we believe MFFO provides useful supplemental information.

Presentation of this information is intended to provide useful information to investors as they compare the operating performance of different REITs, although it should be noted that not all REITs calculate FFO and MFFO the same way, so comparisons with other REITs may not be meaningful. Furthermore, FFO and MFFO are not necessarily indicative of cash flow available to fund cash needs and should not be considered as an alternative to net income (loss) or income (loss) from continuing operations as an indication of our performance, as an alternative to cash flows from operations as an indication of our liquidity, or indicative of funds available to fund our cash needs including our ability to make distributions to our stockholders. FFO and MFFO should be reviewed in conjunction with other GAAP measurements as an indication of our performance.

MFFO has limitations as a performance measure in an offering such as ours, where the price of a share of common stock is a stated value and there is no NAV determination during the offering stage and for a period thereafter. MFFO is useful in assisting management and investors in assessing the sustainability of operating performance in future operating periods, and in particular, after the offering and acquisition stages are complete and NAV is disclosed. MFFO is not a useful measure in evaluating NAV because impairments are taken into account in determining NAV but not in determining MFFO.

Neither the SEC, NAREIT nor any other regulatory body has passed judgment on the acceptability of the adjustments that we use to calculate FFO or MFFO. In the future, the SEC, NAREIT or another regulatory body may decide to standardize the allowable adjustments across the non-listed REIT industry and we would have to adjust our calculation and characterization of FFO or MFFO accordingly.

CPA®:17 – Global 9/30/2012 10-Q — 40

FFO and MFFO were as follows (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Net income attributable to CPA®:17 — Global stockholders	$	12,295		$	10,304		$	37,684		$	35,582
Adjustments:
Depreciation and amortization of real property	17,345			11,367			47,997			28,197
Gain on sale of real estate	—			—			(740		)	(787		)
Proportionate share of adjustments to equity in net income of partially-owned entities to arrive at FFO:
Depreciation and amortization of real property	4,011			4,476			12,457			9,740
Loss (gain) on sale of real estate, net	—			3			—			—
Proportionate share of adjustments for noncontrolling interests to arrive at FFO	(145		)	(164		)	(424		)	(490		)
Total adjustments	21,211			15,682			59,290			36,660
FFO — as defined by NAREIT	33,506			25,986			96,974			72,242
Adjustments:
Other non-real estate depreciation, amortization and non-cash charges	(178		)	(1,069		)	827			(624		)
Straight-line and other rent adjustments (a)	(3,364		)	(3,410		)	(10,581		)	(9,537		)
Impairment charges (b)	—			—			2,019			—
Acquisition expenses (c)	1,598			2,346			3,323			6,374
Above-market rent intangible lease amortization, net (d)	96			461			629			1,408
Amortization of premiums on debt investments, net	35			37			104			111
Realized gains on foreign currency, derivatives and other (e)	(1,630		)	(1,032		)	(3,299		)	(1,620		)
Proportionate share of adjustments to equity in net income of partially-owned entities to arrive at MFFO:
Other non-real estate depreciation, amortization and non-cash charges	2			—			11			1
Straight-line and other rent adjustments (a)	(11		)	(55		)	(39		)	(239		)
Gain on extinguishment of debt (f)	—			—			(1,914		)	—
Acquisition expenses (c)	80			64			208			170
Above (below)-market rent intangible lease amortization, net (d)	47			(4		)	60			8
Realized (gains) losses on foreign currency, derivatives and other (e)	(9		)	1			8			(4		)
Proportionate share of adjustments for noncontrolling interests to arrive at MFFO	(608		)	149			878			771
Total adjustments	(3,942		)	(2,512		)	(7,766		)	(3,181		)
MFFO	$	29,564		$	23,474		$	89,208		$	69,061

(a)	Under GAAP, rental receipts are allocated to periods using an accrual basis. This may result in income recognition that is significantly different than underlying contract terms. By adjusting for these items (to reflect such payments from a GAAP accrual basis to a cash basis of disclosing the rent and lease payments), management believes that MFFO provides useful supplemental information on the realized economic impact of lease terms and debt investments, provides insight on the contractual cash flows of such lease terms and debt investments, and aligns results with management’s analysis of operating performance.
(b)	Impairment charges were incurred on our CMBS portfolio and are considered non-real estate impairments. As such, these impairment charges were not included in our computation of FFO as defined by NAREIT but are included as an adjustment in arriving at MFFO as these charges are not directly related or attributable to our operations.
(c)	In evaluating investments in real estate, management differentiates the costs to acquire the investment from the operations derived from the investment. Such information would be comparable only for non-listed REITs that have completed their acquisition activity and have other similar operating characteristics. By excluding expensed acquisition costs, management believes MFFO provides useful supplemental information that is comparable for each type of real estate investment and is consistent with management’s analysis of the investing and operating performance of our properties. Acquisition fees and expenses include payments to our advisor or third parties. Acquisition fees and expenses under GAAP are considered operating expenses and as expenses included in the determination of net income and income from continuing operations, both of which are performance measures under GAAP. All paid and accrued acquisition fees and expenses will have negative

CPA®:17 – Global 9/30/2012 10-Q — 41

	effects on returns to stockholders, the potential for future distributions, and cash flows generated by us, unless earnings from operations or net sales proceeds from the disposition of properties are generated to cover the purchase price of the property, these fees and expenses and other costs related to the property.
(d)	Under GAAP, certain intangibles are accounted for at cost and reviewed at least annually for impairment, and certain intangibles are assumed to diminish predictably in value over time and amortized, similar to depreciation and amortization of other real estate related assets that are excluded from FFO. However, because real estate values and market lease rates historically rise or fall with market conditions, management believes that by excluding charges relating to amortization of these intangibles, MFFO provides useful supplemental information on the performance of the real estate.
(e)	Management believes that adjusting for fair value adjustments for derivatives provides useful information because such fair value adjustments are based on market fluctuations and may not be directly related or attributable to our operations.
(f)	Relates to our share of gain on the extinguishment of debt recognized by a jointly-owned investment (Note 6).

CPA®:17 – Global 9/30/2012 10-Q — 42

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Market Risk

Market risk is the exposure to loss resulting from changes in interest rates, foreign currency exchange rates and equity prices. The primary risks to which we are exposed are interest rate risk and foreign currency exchange risk. We are also exposed to market risk as a result of concentrations in certain tenant industries. Adverse market factors can affect the ability of tenants in a particular industry/region to meet their respective lease obligations.  In order to manage this risk, we view our collective tenant roster as a portfolio, and in its investment decisions the advisor attempts to diversify our portfolio so that we are not overexposed to a particular industry or geographic region.

Generally, we do not use derivative instruments to hedge credit/market risks or for speculative purposes. However, from time to time, we may enter into foreign currency derivative contracts to hedge our foreign currency cash flow exposures.

Interest Rate Risk

The value of our real estate, related fixed-rate debt obligations and notes receivable is subject to fluctuations based on changes in interest rates. The value of our real estate is also subject to fluctuations based on local and regional economic conditions and changes in the creditworthiness of lessees, all of which may affect our ability to refinance property-level mortgage debt when balloon payments are scheduled. Interest rates are highly sensitive to many factors, including governmental monetary and tax policies, domestic and international economic and political conditions, and other factors beyond our control. An increase in interest rates would likely cause the value of our owned assets to decrease. Increases in interest rates may also have an impact on the credit profile of certain tenants.

We are exposed to the impact of interest rate changes primarily through our borrowing activities. To limit this exposure, we attempt to obtain non-recourse mortgage financing on a long-term, fixed-rate basis. However, from time to time, we or our joint investment 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 lenders that effectively convert the variable-rate debt service obligations of the loan to a fixed rate. Interest rate swaps are agreements in which one party exchanges a stream of interest payments for a counterparty’s stream of cash flows over a specific period, and interest rate caps limit the effective borrowing rate of variable-rate debt obligations while allowing participants to share in downward shifts in interest rates. These interest rate swaps and caps are derivative instruments designated as cash flow hedges on the forecasted interest payments on the debt obligation. The notional, or face, amount on which the swaps or caps are based is not exchanged. Our objective in using these derivatives is to limit our exposure to interest rate movements. At September 30, 2012, we estimate that the net fair value of our interest rate cap and interest rate swaps, which are included in Other assets, net and Accounts payable, accrued expenses and other liabilities, respectively, in the consolidated financial statements, was in a net liability position of $18.9 million (Note 9).

At September 30, 2012, all of our debt either bore interest at fixed rates, was swapped to a fixed rate, was subject to an interest rate cap, or bore interest at fixed rates that were scheduled to convert to then-prevailing market fixed rates at certain future points during their term. The annual interest rates on our fixed-rate debt at September 30, 2012 ranged from 3.6% to 8.0%. The effective annual interest rates on our variable-rate debt at September 30, 2012 ranged from 3.0% to 6.6%. Our debt obligations are more fully described under Financial Condition in Item 2 above. The following table presents principal cash flows based upon expected maturity dates of our debt obligations outstanding at September 30, 2012 (in thousands):

	2012		2013		2014		2015		2016		Thereafter		Total		Fair value
Fixed-rate debt	$	7,729	$	28,638	$	30,205	$	59,859	$	70,622	$	673,335	$	870,388	$	903,843
Variable-rate debt	$	1,142	$	4,829	$	5,025	$	5,146	$	216,495	$	255,485	$	488,122	$	488,123

The estimated fair value of our fixed-rate debt and our variable-rate debt that currently bears interest at fixed rates or has effectively been converted to a fixed rate through the use of interest rate swaps or caps is affected by changes in interest rates. A decrease or increase in interest rates of 1% would change the estimated fair value of this debt at September 30, 2012 by an aggregate increase of $45.5 million or an aggregate decrease of $45.6 million, respectively.

As more fully described under Financial Condition — Summary of Financing in Item 2 above, a portion of the debt classified as variable-rate debt in the table above bore interest at fixed rates at September 30, 2012 but has interest rate reset features that will change the fixed interest rates to then-prevailing market fixed rates at certain points during their term. This debt is generally not subject to short-term fluctuations in interest rates.

CPA®:17 – Global 9/30/2012 10-Q — 43

Foreign Currency Exchange Rate Risk

We own investments in Europe, and as a result are subject to risk from the effects of exchange rate movements in the Euro and, to a lesser extent, the British Pound Sterling, which may affect future costs and cash flows. Although all of our foreign investments through the third quarter of 2012 were conducted in these currencies, we are likely to conduct business in other currencies in the future as we seek to invest funds from our offering internationally. 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. This reduces our overall exposure to the actual equity that we have invested and the equity portion of our cash flow. In addition, we may use currency hedging to further reduce the exposure to our equity cash flow. We are generally a net receiver of these currencies (we receive more cash than we pay out), and therefore our foreign operations benefit from a weaker U.S. dollar, and are adversely affected by a stronger U.S. dollar, relative to the foreign currency.

We enter into foreign currency forward contracts, collars, and put options 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. A foreign currency collar consists of a written call option and a purchased put option to sell the foreign currency at a range of predetermined exchange rates. A foreign currency put option is the right to sell the currency at a predetermined price. By entering into forward contracts, we are locked into a future currency exchange rate for the term of the contract. A foreign currency collar guarantees that the exchange rate of the currency will not fluctuate beyond the range of the options’ strike prices. The total estimated fair value of these instruments, which is included in Other assets, net, in the consolidated financial statements was $10.3 million at September 30, 2012. We obtain non-recourse mortgage financing in the local currency in order to mitigate our exposure to changes in foreign currency exchange rates. To the extent that the currency fluctuations increase or decrease rental revenues as translated to U.S. dollar, the change in debt service, as translated to U.S. dollars, will partially offset the effect of fluctuations in revenue and, to some extent, mitigate the risk from changes in foreign currency exchange rates.

Scheduled future minimum rents, exclusive of renewals, under non-cancelable operating leases, for our foreign operations during each of the next five years and thereafter, are as follows (in thousands):

Lease Revenues (a)	2012		2013		2014		2015		2016		Thereafter		Total
Euro	$	11,397	$	45,611	$	45,675	$	45,702	$	45,702	$	569,659	$	763,746
British pound sterling	1,417		5,628		5,628		5,628		5,629		78,921		102,851
	$	12,814	$	51,239	$	51,303	$	51,330	$	51,331	$	648,580	$	866,597

Scheduled debt service payments (principal and interest) for mortgage notes payable for our foreign operations during each of the next five years and thereafter, are as follows (in thousands):

Debt Service (a) (b)	2012		2013		2014		2015		2016		Thereafter		Total
Euro (c)	$	8,928	$	27,738	$	27,717	$	67,978	$	245,641	$	139,081	$	517,083
British pound sterling (d)	123		486		486		486		13,859		—		15,440
	$	9,051	$	28,224	$	28,203	$	68,464	$	259,500	$	139,081	$	532,523

(a)	Based on the applicable exchange rates at September 30, 2012. Contractual rents and debt obligations are denominated in the functional currency of the country of each property.
(b)	Interest on unhedged variable-rate debt obligations was calculated using the applicable annual interest rates and balances outstanding at September 30, 2012.
(c)	We estimate that for a 1% increase or decrease in the exchange rate between the Euro and the U.S. Dollar, there would be a corresponding change in the projected property-level cash flow at September 30, 2012 of $2.5 million.
(d)	We estimate that for a 1% increase or decrease in the exchange rate between the British Pound Sterling and the U.S. Dollar, there would be a corresponding change in the projected property-level cash flow at September 30, 2012 of $0.9 million.

As a result of scheduled balloon payments on non-recourse mortgage loans, projected debt service obligations exceed projected lease revenues in 2015 and 2016. In 2015 and 2016, balloon payments totaling $42.0 million and $238.0 million, respectively, are due on two and three, respectively, non-recourse mortgage loans. We currently anticipate that, by their respective due dates, we will have refinanced certain of these loans, but there can be no assurance that we will be able to do so on favorable terms, if at all.

CPA®:17 – Global 9/30/2012 10-Q — 44

Item 4. Controls and Procedures

Disclosure Controls and Procedures

Our disclosure controls and procedures include our controls and other procedures designed to provide reasonable assurance that information required to be disclosed in this and other reports filed under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) is recorded, processed, summarized and reported within the required time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to management, including our chief executive officer and chief financial officer, to allow timely decisions regarding required disclosures. It should be noted that no system of controls can provide complete assurance of achieving a company’s objectives and that future events may impact the effectiveness of a system of controls.

Our chief executive officer and chief financial officer, after conducting an evaluation, together with members of our management, of the effectiveness of the design and operation of our disclosure controls and procedures at September 30, 2012, have concluded that our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) were effective as of September 30, 2012 at a reasonable level of assurance.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

For the three months ended September 30, 2012, we issued 483,978 shares of our common stock to the advisor as consideration for asset management fees. These shares were issued at $10.00 per share, which represents our follow-on offering price. Since none of these transactions were considered to have involved a “public offering” within the meaning of Section 4(2) of the Securities Act, the shares issued were deemed to be exempt from registration. In acquiring our shares, the advisor represented that such interests were being acquired by it for the purpose of investment and not with a view to the distribution thereof.

Issuer Purchases of Equity Securities

The following table provides information with respect to repurchases of our common stock during the three months ended September 30, 2012:

					Maximum number (or
				Total number of shares	approximate dollar value)
				purchased as part of	of shares that may yet be
	Total number of	Average price		publicly announced	purchased under the
2012 Period	shares purchased (a)	paid per share		plans or program (a)	plans or program (a)
July	—	—		N/A	N/A
August	—	—		N/A	N/A
September	591,671	$	9.42	N/A	N/A
Total	591,671

(a) Represents shares of our common stock repurchased under our redemption plan, pursuant to which we may elect to redeem shares at the request of our stockholders who have held their shares for at least one year from the date of their issuance, subject to certain exceptions, conditions and limitations. The maximum amount of shares purchasable by us in any period depends on a number of factors and is at the discretion of our board of directors. The redemption plan will terminate if and when our shares are listed on a national securities market.

CPA®:17 – Global 9/30/2012 10-Q — 45

Item 6. Exhibits

The following exhibits are filed with this Report, except where indicated.

Exhibit No.	Description
10.1	Amended and Restated Advisory Agreement, dated as of September 28, 2012, among Corporate Property Associates 17 — Global Incorporated, CPA:17 Limited Partnership and Carey Asset Management Corp.
31.1	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32	Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	The following materials from Corporate Property Associates 17 — Global Incorporated’s Quarterly Report on Form 10-Q for the quarter ended at September 30, 2012, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets at at September 30, 2012 and December 31, 2011, (ii) Consolidated Statements of Income for the three and nine months ended September 30, 2012 and 2011, (iii) Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2012 and 2011, (iv) Consolidated Statements of Equity for the nine months ended September 30, 2012 and 2011, (v) Consolidated Statements of Cash Flows for the nine months ended September 30, 2012 and 2011, and (vi) Notes to Consolidated Financial Statements.*

*      Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

CPA®:17 – Global 9/30/2012 10-Q — 46

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

		Corporate Property Associates 17 – Global Incorporated
Date: November 9, 2012	By:	/s/ Mark J. DeCesaris
		Mark J. DeCesaris
		Chief Financial Officer
		(Principal Financial Officer)
Date: November 9, 2012	By:	/s/ Hisham A. Kader
		Hisham A. Kader
		Chief Accounting Officer
		(Principal Accounting Officer)

CPA®:17 – Global 9/30/2012 10-Q — 47

EXHIBIT INDEX

The following exhibits are filed with this Report, except where indicated.

Exhibit No.	Description
10.1	Amended and Restated Advisory Agreement, dated as of September 28, 2012, among Corporate Property Associates 17 — Global Incorporated, CPA:17 Limited Partnership and Carey Asset Management Corp.
31.1	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32	Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	The following materials from Corporate Property Associates 17 — Global Incorporated’s Quarterly Report on Form 10-Q for the quarter ended at September 30, 2012, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets at at September 30, 2012 and December 31, 2011, (ii) Consolidated Statements of Income for the three and nine months ended September 30, 2012 and 2011, (iii) Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2012 and 2011, (iv) Consolidated Statements of Equity for the nine months ended September 30, 2012 and 2011, (v) Consolidated Statements of Cash Flows for the nine months ended September 30, 2012 and 2011, and (vi) Notes to Consolidated Financial Statements.*

*      Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.