|
þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
or
|
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the transition period from
to
|
Maryland
|
|
20-8429087
|
(State of incorporation)
|
|
(I.R.S. Employer Identification No.)
|
|
|
|
50 Rockefeller Plaza
|
|
|
New York, New York
|
|
10020
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Large accelerated filer
o
|
Accelerated filer
o
|
Non-accelerated filer
þ
|
Smaller reporting company
o
|
|
|
(Do not check if a smaller reporting company)
|
|
|
|
|
Page No.
|
PART I − FINANCIAL INFORMATION
|
|
|
Item 1. Financial Statements (Unaudited)
|
|
|
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||
|
||
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||
|
||
|
||
|
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Item 4.
Controls and Procedures
|
||
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PART II − OTHER INFORMATION
|
|
|
Item 6.
Exhibits
|
||
|
March 31, 2015
|
|
December 31, 2014
|
||||
Assets
|
|
|
|
||||
Investments in real estate:
|
|
|
|
||||
Real estate, at cost (inclusive of $139,067 and $144,753, respectively, attributable to variable interest entities, or VIEs)
|
$
|
2,355,962
|
|
|
$
|
2,396,715
|
|
Operating real estate, at cost
|
273,155
|
|
|
272,859
|
|
||
Accumulated depreciation (inclusive of $10,770 and $9,984, respectively, attributable to VIEs)
|
(205,401
|
)
|
|
(197,695
|
)
|
||
Net investments in properties
|
2,423,716
|
|
|
2,471,879
|
|
||
Real estate under construction
|
111,011
|
|
|
110,983
|
|
||
Net investments in direct financing leases (inclusive of $246,254 and $245,815, respectively, attributable to VIEs)
|
474,852
|
|
|
479,425
|
|
||
Net investments in real estate
|
3,009,579
|
|
|
3,062,287
|
|
||
Equity investments in real estate
|
532,047
|
|
|
531,000
|
|
||
Cash and cash equivalents (inclusive of $52 and $27, respectively, attributable to VIEs)
|
129,255
|
|
|
275,719
|
|
||
In-place lease and tenant relationship intangible assets, net (inclusive of $16,122 and $16,348, respectively, attributable to VIEs)
|
432,880
|
|
|
432,444
|
|
||
Other intangible assets, net
|
78,256
|
|
|
83,238
|
|
||
Other assets, net (inclusive of $16,285 and $16,536, respectively, attributable to VIEs)
|
297,323
|
|
|
221,209
|
|
||
Total assets
|
$
|
4,479,340
|
|
|
$
|
4,605,897
|
|
Liabilities and Equity
|
|
|
|
||||
Liabilities:
|
|
|
|
||||
Non-recourse debt (inclusive of $191,924 and $193,437, respectively, attributable to VIEs)
|
$
|
1,849,317
|
|
|
$
|
1,896,489
|
|
Accounts payable, accrued expenses and other liabilities (inclusive of $7,405 and $10,109, respectively, attributable to VIEs)
|
135,179
|
|
|
141,043
|
|
||
Deferred income taxes (inclusive of $0 and $60, respectively, attributable to VIEs)
|
11,919
|
|
|
12,234
|
|
||
Below-market rent and other intangible liabilities, net (inclusive of $360 and $365, respectively, attributable to VIEs)
|
102,291
|
|
|
104,722
|
|
||
Due to affiliates
|
15,594
|
|
|
12,634
|
|
||
Distributions payable
|
53,921
|
|
|
53,378
|
|
||
Total liabilities
|
2,168,221
|
|
|
2,220,500
|
|
||
Commitments and contingencies (
Note 12
)
|
|
|
|
|
|
||
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; 900,000,000 shares authorized; 340,168,558 and 336,843,388 shares issued, respectively; and 331,806,009 and 328,480,839 shares outstanding, respectively
|
340
|
|
|
337
|
|
||
Additional paid-in capital
|
3,063,579
|
|
|
3,033,283
|
|
||
Distributions in excess of accumulated earnings
|
(607,147
|
)
|
|
(567,806
|
)
|
||
Accumulated other comprehensive loss
|
(145,770
|
)
|
|
(81,007
|
)
|
||
Less: treasury stock at cost, 8,362,549 shares
|
(77,852
|
)
|
|
(77,852
|
)
|
||
Total CPA
®
:17 – Global stockholders’ equity
|
2,233,150
|
|
|
2,306,955
|
|
||
Noncontrolling interests
|
77,969
|
|
|
78,442
|
|
||
Total equity
|
2,311,119
|
|
|
2,385,397
|
|
||
Total liabilities and equity
|
$
|
4,479,340
|
|
|
$
|
4,605,897
|
|
|
Three Months Ended March 31,
|
||||||
|
2015
|
|
2014
|
||||
Revenues
|
|
|
|
||||
Lease revenues:
|
|
|
|
||||
Rental income
|
$
|
63,377
|
|
|
$
|
63,105
|
|
Interest income from direct financing leases
|
13,480
|
|
|
13,538
|
|
||
Total lease revenues
|
76,857
|
|
|
76,643
|
|
||
Other real estate income
|
11,838
|
|
|
16,334
|
|
||
Other operating income
|
7,761
|
|
|
6,691
|
|
||
Other interest income
|
2,294
|
|
|
1,481
|
|
||
|
98,750
|
|
|
101,149
|
|
||
Operating Expenses
|
|
|
|
||||
Depreciation and amortization
|
25,564
|
|
|
25,840
|
|
||
Property expenses
|
17,890
|
|
|
16,169
|
|
||
General and administrative
|
4,843
|
|
|
6,201
|
|
||
Other real estate expenses
|
4,641
|
|
|
9,184
|
|
||
Acquisition expenses
|
603
|
|
|
1,129
|
|
||
Impairment charge
|
567
|
|
|
—
|
|
||
|
54,108
|
|
|
58,523
|
|
||
Other Income and Expenses
|
|
|
|
||||
Equity in earnings (losses) of equity method investments in real estate
|
3,215
|
|
|
(2,864
|
)
|
||
Other income and (expenses)
|
(3,394
|
)
|
|
683
|
|
||
Interest expense
|
(22,025
|
)
|
|
(23,329
|
)
|
||
|
(22,204
|
)
|
|
(25,510
|
)
|
||
Income before income taxes and gain on sale of real estate
|
22,438
|
|
|
17,116
|
|
||
Provision for income taxes
|
(791
|
)
|
|
(638
|
)
|
||
Income before gain on sale of real estate
|
21,647
|
|
|
16,478
|
|
||
Gain on sale of real estate, net of tax
|
2,197
|
|
|
—
|
|
||
Net Income
|
23,844
|
|
|
16,478
|
|
||
Net income attributable to noncontrolling interests (inclusive of Available Cash Distributions to a related party of $6,064 and $4,679, respectively)
|
(9,264
|
)
|
|
(7,677
|
)
|
||
Net Income Attributable to CPA
®
:17 – Global
|
$
|
14,580
|
|
|
$
|
8,801
|
|
Earnings Per Share
|
$
|
0.04
|
|
|
$
|
0.03
|
|
Weighted-Average Shares Outstanding
|
331,058,291
|
|
|
319,740,857
|
|
||
|
|
|
|
||||
Distributions Declared Per Share
|
$
|
0.1625
|
|
|
$
|
0.1625
|
|
|
Three Months Ended March 31,
|
||||||
|
2015
|
|
2014
|
||||
Net Income
|
$
|
23,844
|
|
|
$
|
16,478
|
|
Other Comprehensive Loss
|
|
|
|
||||
Foreign currency translation adjustments
|
(88,730
|
)
|
|
(1,060
|
)
|
||
Change in net unrealized gain (loss) on derivative instruments
|
22,736
|
|
|
(2,511
|
)
|
||
Change in unrealized gain on marketable securities
|
7
|
|
|
24
|
|
||
|
(65,987
|
)
|
|
(3,547
|
)
|
||
Comprehensive (Loss) Income
|
(42,143
|
)
|
|
12,931
|
|
||
|
|
|
|
||||
Amounts Attributable to Noncontrolling Interests
|
|
|
|
||||
Net income
|
(9,264
|
)
|
|
(7,677
|
)
|
||
Change in net unrealized gain on derivative instruments
|
—
|
|
|
(149
|
)
|
||
Foreign currency translation adjustments
|
1,224
|
|
|
4
|
|
||
Comprehensive income attributable to noncontrolling interests
|
(8,040
|
)
|
|
(7,822
|
)
|
||
Comprehensive (Loss) Income Attributable to CPA
®
:17 – Global
|
$
|
(50,183
|
)
|
|
$
|
5,109
|
|
|
CPA
®
:17 – Global
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Total
Outstanding
Shares
|
|
Common
Stock
|
|
Additional
Paid-In
Capital
|
|
Distributions
in Excess of
Accumulated
Earnings
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Treasury
Stock
|
|
Total
CPA
®
:17
– Global
Stockholders
|
|
Noncontrolling
Interests
|
|
Total
|
|||||||||||||||||
Balance at January 1, 2015
|
328,480,839
|
|
|
$
|
337
|
|
|
$
|
3,033,283
|
|
|
$
|
(567,806
|
)
|
|
$
|
(81,007
|
)
|
|
$
|
(77,852
|
)
|
|
$
|
2,306,955
|
|
|
$
|
78,442
|
|
|
$
|
2,385,397
|
|
Shares issued, net of offering costs
|
2,843,332
|
|
|
2
|
|
|
25,666
|
|
|
|
|
|
|
|
|
25,668
|
|
|
|
|
25,668
|
|
||||||||||||
Shares issued to affiliates
|
481,838
|
|
|
1
|
|
|
4,630
|
|
|
|
|
|
|
|
|
4,631
|
|
|
|
|
4,631
|
|
||||||||||||
Distributions declared ($0.1625 per share)
|
|
|
|
|
|
|
(53,921
|
)
|
|
|
|
|
|
(53,921
|
)
|
|
|
|
(53,921
|
)
|
||||||||||||||
Distributions to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
(8,513
|
)
|
|
(8,513
|
)
|
||||||||||||||
Net income
|
|
|
|
|
|
|
14,580
|
|
|
|
|
|
|
14,580
|
|
|
9,264
|
|
|
23,844
|
|
|||||||||||||
Other comprehensive loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Foreign currency translation adjustments
|
|
|
|
|
|
|
|
|
(87,506
|
)
|
|
|
|
(87,506
|
)
|
|
(1,224
|
)
|
|
(88,730
|
)
|
|||||||||||||
Change in net unrealized gain on derivative instruments
|
|
|
|
|
|
|
|
|
22,736
|
|
|
|
|
22,736
|
|
|
—
|
|
|
22,736
|
|
|||||||||||||
Change in unrealized gain on marketable securities
|
|
|
|
|
|
|
|
|
7
|
|
|
|
|
7
|
|
|
|
|
7
|
|
||||||||||||||
Balance at March 31, 2015
|
331,806,009
|
|
|
$
|
340
|
|
|
$
|
3,063,579
|
|
|
$
|
(607,147
|
)
|
|
$
|
(145,770
|
)
|
|
$
|
(77,852
|
)
|
|
$
|
2,233,150
|
|
|
$
|
77,969
|
|
|
$
|
2,311,119
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance at January 1, 2014
|
317,353,899
|
|
|
$
|
323
|
|
|
$
|
2,904,927
|
|
|
$
|
(431,095
|
)
|
|
$
|
(13,442
|
)
|
|
$
|
(52,477
|
)
|
|
$
|
2,408,236
|
|
|
$
|
77,488
|
|
|
2,485,724
|
|
|
Shares issued, net of offering costs
|
2,629,268
|
|
|
2
|
|
|
24,965
|
|
|
|
|
|
|
|
|
24,967
|
|
|
|
|
24,967
|
|
||||||||||||
Shares issued to affiliates
|
659,136
|
|
|
1
|
|
|
6,359
|
|
|
|
|
|
|
|
|
6,360
|
|
|
|
|
6,360
|
|
||||||||||||
Distributions declared ($0.1625 per share)
|
|
|
|
|
|
|
(52,040
|
)
|
|
|
|
|
|
(52,040
|
)
|
|
|
|
(52,040
|
)
|
||||||||||||||
Distributions to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
(7,139
|
)
|
|
(7,139
|
)
|
||||||||||||||
Net income
|
|
|
|
|
|
|
8,801
|
|
|
|
|
|
|
8,801
|
|
|
7,677
|
|
|
16,478
|
|
|||||||||||||
Other comprehensive loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Foreign currency translation adjustments
|
|
|
|
|
|
|
|
|
(1,056
|
)
|
|
|
|
(1,056
|
)
|
|
(4
|
)
|
|
(1,060
|
)
|
|||||||||||||
Change in net unrealized loss on derivative instruments
|
|
|
|
|
|
|
|
|
(2,660
|
)
|
|
|
|
(2,660
|
)
|
|
149
|
|
|
(2,511
|
)
|
|||||||||||||
Change in unrealized gain on marketable securities
|
|
|
|
|
|
|
|
|
24
|
|
|
|
|
24
|
|
|
|
|
24
|
|
||||||||||||||
Repurchase of shares
|
(392,469
|
)
|
|
|
|
|
|
|
|
|
|
(3,554
|
)
|
|
(3,554
|
)
|
|
|
|
(3,554
|
)
|
|||||||||||||
Balance at March 31, 2014
|
320,249,834
|
|
|
$
|
326
|
|
|
$
|
2,936,251
|
|
|
$
|
(474,334
|
)
|
|
$
|
(17,134
|
)
|
|
$
|
(56,031
|
)
|
|
$
|
2,389,078
|
|
|
$
|
78,171
|
|
|
$
|
2,467,249
|
|
|
Three Months Ended March 31,
|
||||||
|
2015
|
|
2014
|
||||
Cash Flows — Operating Activities
|
|
|
|
||||
Net Cash Provided by Operating Activities
|
$
|
55,520
|
|
|
$
|
46,143
|
|
Cash Flows — Investing Activities
|
|
|
|
||||
Acquisitions of real estate
|
(86,857
|
)
|
|
(10,523
|
)
|
||
Funding of loans receivable
|
(42,600
|
)
|
|
—
|
|
||
Capital contributions to equity investments in real estate
|
(25,566
|
)
|
|
(114,030
|
)
|
||
Value added taxes paid in connection with acquisition of real estate
|
(14,714
|
)
|
|
—
|
|
||
Funding for build-to-suit projects
|
(6,894
|
)
|
|
(19,977
|
)
|
||
Return of capital from equity investments in real estate
|
6,731
|
|
|
10,835
|
|
||
Changes in investing restricted cash
|
4,880
|
|
|
(18,193
|
)
|
||
Payment of deferred acquisition fees to an affiliate
|
(2,676
|
)
|
|
(2,818
|
)
|
||
Value added taxes refunded in connection with acquisition of real estate
|
652
|
|
|
114
|
|
||
Proceeds from repayment of loans receivable
|
632
|
|
|
—
|
|
||
Investment in securities
|
—
|
|
|
(31
|
)
|
||
Net Cash Used in Investing Activities
|
(166,412
|
)
|
|
(154,623
|
)
|
||
Cash Flows — Financing Activities
|
|
|
|
||||
Distributions paid
|
(53,378
|
)
|
|
(51,569
|
)
|
||
Proceeds from issuance of shares, net of issuance costs
|
25,670
|
|
|
24,968
|
|
||
Proceeds from mortgage financing
|
17,041
|
|
|
44,998
|
|
||
Distributions to noncontrolling interests
|
(8,513
|
)
|
|
(7,139
|
)
|
||
Scheduled payments and prepayments of mortgage principal
|
(6,639
|
)
|
|
(27,232
|
)
|
||
Changes in financing restricted cash
|
(1,087
|
)
|
|
(2,308
|
)
|
||
Payment of financing costs and mortgage deposits, net of deposits refunded
|
(270
|
)
|
|
(517
|
)
|
||
Purchase of treasury stock
|
—
|
|
|
(3,554
|
)
|
||
Net Cash Used in Financing Activities
|
(27,176
|
)
|
|
(22,353
|
)
|
||
Change in Cash and Cash Equivalents During the Period
|
|
|
|
||||
Effect of exchange rate changes on cash
|
(8,396
|
)
|
|
263
|
|
||
Net decrease in cash and cash equivalents
|
(146,464
|
)
|
|
(130,570
|
)
|
||
Cash and cash equivalents, beginning of period
|
275,719
|
|
|
418,108
|
|
||
Cash and cash equivalents, end of period
|
$
|
129,255
|
|
|
$
|
287,538
|
|
|
Three Months Ended March 31, 2014
|
||||||||||
|
As Reported
|
|
Revisions
|
|
As Revised
|
||||||
Revenues
|
|
|
|
|
|
||||||
Total revenues
|
$
|
101,149
|
|
|
$
|
—
|
|
|
$
|
101,149
|
|
Operating Expenses
|
|
|
|
|
|
||||||
Total operating expenses
|
58,523
|
|
|
—
|
|
|
58,523
|
|
|||
Other Income and Expenses
|
|
|
|
|
|
||||||
Equity in losses of equity method investments in real estate
|
(3,249
|
)
|
|
385
|
|
|
(2,864
|
)
|
|||
Other income and (expenses)
|
952
|
|
|
(269
|
)
|
|
683
|
|
|||
Interest expense
|
(23,329
|
)
|
|
—
|
|
|
(23,329
|
)
|
|||
|
(25,626
|
)
|
|
116
|
|
|
(25,510
|
)
|
|||
Income before income taxes
|
17,000
|
|
|
116
|
|
|
17,116
|
|
|||
Provision for income taxes
|
(696
|
)
|
|
58
|
|
|
(638
|
)
|
|||
Net Income
|
16,304
|
|
|
174
|
|
|
16,478
|
|
|||
Net income attributable to noncontrolling interests
|
(7,677
|
)
|
|
—
|
|
|
(7,677
|
)
|
|||
Net Income Attributable to CPA
®
:17 – Global
|
$
|
8,627
|
|
|
$
|
174
|
|
|
$
|
8,801
|
|
Earnings Per Share
|
$
|
0.03
|
|
|
$
|
—
|
|
|
$
|
0.03
|
|
Weighted-Average Shares Outstanding
|
319,740,857
|
|
|
|
|
319,740,857
|
|
|
Three Months Ended March 31, 2014
|
||||||||||
|
As Reported
|
|
Revisions
|
|
As Revised
|
||||||
Net Income
|
$
|
16,304
|
|
|
$
|
174
|
|
|
$
|
16,478
|
|
Other Comprehensive Loss
|
|
|
|
|
|
|
|||||
Foreign currency translation adjustments
|
(1,390
|
)
|
|
330
|
|
|
(1,060
|
)
|
|||
Change in net unrealized loss on derivative instruments
|
(2,451
|
)
|
|
(60
|
)
|
|
(2,511
|
)
|
|||
Change in unrealized gain on marketable securities
|
24
|
|
|
—
|
|
|
24
|
|
|||
|
(3,817
|
)
|
|
270
|
|
|
(3,547
|
)
|
|||
Comprehensive Income
|
12,487
|
|
|
444
|
|
|
12,931
|
|
|||
|
|
|
|
|
|
||||||
Amounts Attributable to Noncontrolling Interests
|
|
|
|
|
|
||||||
Net income
|
(7,677
|
)
|
|
—
|
|
|
(7,677
|
)
|
|||
Foreign currency translation adjustments
|
4
|
|
|
—
|
|
|
4
|
|
|||
Change in net unrealized gain on derivative instruments
|
(149
|
)
|
|
—
|
|
|
(149
|
)
|
|||
Comprehensive income attributable to noncontrolling interests
|
(7,822
|
)
|
|
—
|
|
|
(7,822
|
)
|
|||
Comprehensive Income Attributable to CPA
®
:17 – Global
|
$
|
4,665
|
|
|
$
|
444
|
|
|
$
|
5,109
|
|
|
CPA
®
:17 – Global
|
|
|
|
|
|||||||||||||||||||||||||||||
Balance at January 1, 2014
|
Total
Outstanding
Shares
|
|
Common
Stock
|
|
Additional
Paid-In
Capital
|
|
Distributions
in Excess of
Accumulated
Earnings (a)
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Treasury
Stock
|
|
Total
CPA
®
:17
– Global
Stockholders
|
|
Noncontrolling
Interests
|
|
Total
|
|||||||||||||||||
As Reported
|
317,353,899
|
|
|
$
|
323
|
|
|
$
|
2,904,927
|
|
|
$
|
(439,688
|
)
|
|
$
|
(5,275
|
)
|
|
$
|
(52,477
|
)
|
|
$
|
2,407,810
|
|
|
$
|
77,488
|
|
|
$
|
2,485,298
|
|
Revisions
|
—
|
|
|
—
|
|
|
—
|
|
|
8,593
|
|
|
(8,167
|
)
|
|
—
|
|
|
426
|
|
|
—
|
|
|
426
|
|
||||||||
As Revised
|
317,353,899
|
|
|
$
|
323
|
|
|
$
|
2,904,927
|
|
|
$
|
(431,095
|
)
|
|
$
|
(13,442
|
)
|
|
$
|
(52,477
|
)
|
|
$
|
2,408,236
|
|
|
$
|
77,488
|
|
|
$
|
2,485,724
|
|
(a)
|
The amount previously reported also reflects changes to prior period amounts related to the change in accounting for our investment in BG LLH, LLC, as more fully described in
Note 3
.
|
•
|
In 2014, we identified a classification error on one of our derivative instruments. Accordingly, we reclassified its associated mark-to-market adjustments during 2014, 2013, and 2012 from Change in net unrealized gain (loss) on derivative instruments to Foreign currency translation adjustments within the consolidated statements of equity and comprehensive income. There was no impact to Other comprehensive loss or Comprehensive income for the
three months ended March 31, 2014
. There was no impact on Total equity at January 1, 2014 related to this reclassification.
|
•
|
In the first quarter of 2014, we changed the accounting related to deferred foreign income taxes for one of our equity investments in real estate and we identified an additional tax-paying entity related to another of our equity investments in real estate. In the fourth quarter of 2013, we identified an error in the consolidated financial statements related to accounting for deferred foreign income taxes in connection with the acquisition of 15 properties acquired during 2008 through 2012. These revision adjustments resulted in a decrease in Equity in losses of equity method investments in real estate of
$0.4 million
and a decrease in Provision for income taxes of less than
$0.1 million
for the
three months ended March 31, 2014
. The impact of these revision adjustments on Distributions in excess of accumulated earnings and Accumulated other comprehensive loss was
$0.5 million
and less than
$0.1 million
, respectively, at January 1, 2014.
|
|
Three Months Ended March 31,
|
||||||
|
2015
|
|
2014
|
||||
Amounts Included in the Consolidated Statements of Income
|
|
|
|
||||
Asset management fees
|
$
|
7,142
|
|
|
$
|
6,620
|
|
Available Cash Distribution
|
6,064
|
|
|
4,679
|
|
||
Personnel and overhead reimbursements
|
3,456
|
|
|
3,499
|
|
||
Acquisition expenses
|
430
|
|
|
893
|
|
||
Interest expense on deferred acquisition fees and loan from affiliate
|
73
|
|
|
151
|
|
||
|
$
|
17,165
|
|
|
$
|
15,842
|
|
Acquisition Fees Capitalized
|
|
|
|
||||
Current acquisition fees
|
$
|
2,434
|
|
|
$
|
5
|
|
Deferred acquisition fees
|
1,729
|
|
|
8
|
|
||
|
$
|
4,163
|
|
|
$
|
13
|
|
|
March 31, 2015
|
|
December 31, 2014
|
||||
Due to Affiliates
|
|
|
|
||||
Deferred acquisition fees, including interest
|
$
|
5,630
|
|
|
$
|
9,394
|
|
Asset management fees payable
|
4,795
|
|
|
2,283
|
|
||
Reimbursable costs
|
3,214
|
|
|
228
|
|
||
Accounts payable
|
1,651
|
|
|
527
|
|
||
Subordinated disposition fees
|
202
|
|
|
202
|
|
||
Current acquisition fees
|
102
|
|
|
—
|
|
||
|
$
|
15,594
|
|
|
$
|
12,634
|
|
|
March 31, 2015
|
|
December 31, 2014
|
||||
Land
|
$
|
499,493
|
|
|
$
|
513,172
|
|
Buildings
|
1,856,469
|
|
|
1,883,543
|
|
||
Less: Accumulated depreciation
|
(181,175
|
)
|
|
(175,478
|
)
|
||
|
$
|
2,174,787
|
|
|
$
|
2,221,237
|
|
•
|
$22.2 million
for an office facility in San Antonio, Texas on January 16, 2015; and
|
•
|
$63.8 million
for
two
warehouse facilities in Mszczonów and Tomaszów Mazowiecki, Poland on February 26, 2015 (dollar amount is based on the exchange rate of the euro on the date of acquisition).
|
|
March 31, 2015
|
|
December 31, 2014
|
||||
Land
|
$
|
66,066
|
|
|
$
|
66,066
|
|
Buildings
|
207,089
|
|
|
206,793
|
|
||
Less: Accumulated depreciation
|
(24,226
|
)
|
|
(22,217
|
)
|
||
|
$
|
248,929
|
|
|
$
|
250,642
|
|
|
Three Months Ended
|
|
Year Ended
|
||||
|
March 31, 2015
|
|
December 31, 2014
|
||||
Beginning balance
|
$
|
110,983
|
|
|
$
|
127,935
|
|
Capitalized funds
|
5,306
|
|
|
74,420
|
|
||
Placed into service
|
(4,814
|
)
|
|
(96,807
|
)
|
||
Foreign currency translation adjustments, building improvements, and other
|
(1,616
|
)
|
|
(1,226
|
)
|
||
Capitalized interest
|
1,152
|
|
|
6,661
|
|
||
Ending balance
|
$
|
111,011
|
|
|
$
|
110,983
|
|
|
|
Number of Tenants / Obligors at
|
|
Net Investments in Direct Financing Leases Carrying Value at
|
||||||||
Internal Credit Quality Indicator
|
|
March 31, 2015
|
|
December 31, 2014
|
|
March 31, 2015
|
|
December 31, 2014
|
||||
1
|
|
—
|
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
2
|
|
1
|
|
1
|
|
2,260
|
|
|
2,259
|
|
||
3
|
|
8
|
|
8
|
|
384,431
|
|
|
389,245
|
|
||
4
|
|
3
|
|
3
|
|
88,161
|
|
|
87,921
|
|
||
5
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
||
|
|
|
|
|
|
$
|
474,852
|
|
|
$
|
479,425
|
|
|
|
Number of Tenants / Obligors at
|
|
Loans Receivable Carrying Value at
|
||||||||
Internal Credit Quality Indicator
|
|
March 31, 2015
|
|
December 31, 2014
|
|
March 31, 2015
|
|
December 31, 2014
|
||||
1
|
|
—
|
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
2
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
||
3
|
|
3
|
|
1
|
|
82,600
|
|
|
40,000
|
|
||
4
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
||
5
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
||
|
|
|
|
|
|
$
|
82,600
|
|
|
$
|
40,000
|
|
|
|
|
|
Ownership Interest at
|
|
Carrying Value at
|
||||||
Lessee/Equity Investee
|
|
Co-owner
|
|
March 31, 2015
|
|
March 31, 2015
|
|
December 31, 2014
|
||||
Shelborne Property Associates, LLC
(a)
|
|
Third Party
|
|
33%
|
|
$
|
153,515
|
|
|
$
|
152,801
|
|
C1000 Logistiek Vastgoed B.V.
(b) (c) (d)
|
|
WPC
|
|
85%
|
|
60,811
|
|
|
71,130
|
|
||
BPS Nevada, LLC
(e)
|
|
Third Party
|
|
15%
|
|
48,349
|
|
|
40,032
|
|
||
IDL Wheel Tenant, LLC
(f)
|
|
Third Party
|
|
N/A
|
|
44,672
|
|
|
30,049
|
|
||
BG LLH, LLC
|
|
Third Party
|
|
7%
|
|
41,222
|
|
|
42,587
|
|
||
U-Haul Moving Partners, Inc. and Mercury Partners, LP
|
|
WPC
|
|
12%
|
|
40,585
|
|
|
41,028
|
|
||
Bank Pekao S.A.
(b)
|
|
CPA
®
:18 – Global
|
|
50%
|
|
26,993
|
|
|
31,045
|
|
||
State Farm
|
|
CPA
®
:18 – Global
|
|
50%
|
|
19,676
|
|
|
20,414
|
|
||
Madison Storage NYC, LLC and Veritas Group IX-NYC, LLC
(g)
|
|
Third Party
|
|
45%
|
|
19,669
|
|
|
20,147
|
|
||
Apply Sørco AS
(b)
|
|
CPA
®
:18 – Global
|
|
49%
|
|
17,462
|
|
|
19,076
|
|
||
Berry Plastics Corporation
|
|
WPC
|
|
50%
|
|
16,421
|
|
|
16,632
|
|
||
Tesco plc
(b)
|
|
WPC
|
|
49%
|
|
12,617
|
|
|
14,194
|
|
||
Hellweg Die Profi-Baumärkte GmbH & Co. KG (referred to as Hellweg 2)
(b)
|
|
WPC
|
|
37%
|
|
9,984
|
|
|
9,935
|
|
||
Agrokor d.d. (referred to as Agrokor 5)
(b)
|
|
CPA
®
:18 – Global
|
|
20%
|
|
7,577
|
|
|
8,760
|
|
||
Eroski Sociedad Cooperativa – Mallorca
(b)
|
|
WPC
|
|
30%
|
|
6,757
|
|
|
7,662
|
|
||
Dick’s Sporting Goods, Inc.
|
|
WPC
|
|
45%
|
|
5,737
|
|
|
5,508
|
|
||
|
|
|
|
|
|
$
|
532,047
|
|
|
$
|
531,000
|
|
(a)
|
Represents a domestic ADC Arrangement. We consider this investment a VIE. We capitalized
$3.3 million
of interest related to the loan during the
three months ended March 31, 2015
. At
March 31, 2015
, the unfunded balance on the loan related to this investment was
$0.3 million
.
|
(b)
|
The carrying value of this investment is affected by the impact of fluctuations in the exchange rate of the applicable foreign currency.
|
(c)
|
This investment represents a tenancy-in-common interest, whereby the property is encumbered by debt for which we are jointly and severally liable. For this investment, the co-obligor is WPC and the amount due under the arrangement was approximately
$72.8 million
and
$82.7 million
at
March 31, 2015
and
December 31, 2014
, respectively. Of these amounts,
$61.9 million
and
$70.3 million
represent the amounts we agreed to pay and are included within the carrying value of this investment at
March 31, 2015
and
December 31, 2014
, respectively.
|
(d)
|
The decrease in carrying value was partially due to distributions made to us.
|
(e)
|
See
Acquisition of Equity Investment
below.
|
(f)
|
Represents a domestic ADC Arrangement. We consider this investment a VIE. We provided funding of
$14.6 million
to this investment and capitalized
$0.9 million
of interest related to the loan during the
three months ended March 31, 2015
. At
March 31, 2015
, the unfunded balance on the loan related to this investment was
$4.2 million
.
|
(g)
|
In addition to our
45%
equity interest, we have a
40%
indirect economic interest in this investment based upon certain contractual arrangements with our partner in this entity that enable or could require us to purchase their interest.
|
|
Weighted-Average Life
|
|
Amount
|
||
Amortizable Intangible Assets
|
|
|
|
||
In-place lease
|
12.3
|
|
$
|
25,868
|
|
Above-market rent
|
10.0
|
|
587
|
|
|
|
|
|
$
|
26,455
|
|
Amortizable Intangible Liabilities
|
|
|
|
||
Below-market rent
|
20.1
|
|
$
|
(658
|
)
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||||
|
Gross Carrying Amount
|
|
Accumulated
Amortization
|
|
Net Carrying Amount
|
|
Gross Carrying Amount
|
|
Accumulated
Amortization
|
|
Net Carrying Amount
|
||||||||||||
Amortizable Intangible Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
In-place lease and tenant relationship
|
$
|
558,406
|
|
|
$
|
(125,526
|
)
|
|
$
|
432,880
|
|
|
$
|
551,569
|
|
|
$
|
(119,125
|
)
|
|
$
|
432,444
|
|
Above-market rent
|
87,816
|
|
|
(16,758
|
)
|
|
71,058
|
|
|
92,548
|
|
|
(16,539
|
)
|
|
76,009
|
|
||||||
Below-market ground leases
|
7,123
|
|
|
(229
|
)
|
|
6,894
|
|
|
7,124
|
|
|
(199
|
)
|
|
6,925
|
|
||||||
|
653,345
|
|
|
(142,513
|
)
|
|
510,832
|
|
|
651,241
|
|
|
(135,863
|
)
|
|
515,378
|
|
||||||
Unamortizable Intangible Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Goodwill
|
304
|
|
|
—
|
|
|
304
|
|
|
304
|
|
|
—
|
|
|
304
|
|
||||||
Total intangible assets
|
$
|
653,649
|
|
|
$
|
(142,513
|
)
|
|
$
|
511,136
|
|
|
$
|
651,545
|
|
|
$
|
(135,863
|
)
|
|
$
|
515,682
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Amortizable Intangible Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Below-market rent
|
$
|
(115,623
|
)
|
|
$
|
14,456
|
|
|
$
|
(101,167
|
)
|
|
$
|
(116,887
|
)
|
|
$
|
13,293
|
|
|
$
|
(103,594
|
)
|
Above-market ground lease
|
(1,145
|
)
|
|
21
|
|
|
(1,124
|
)
|
|
(1,145
|
)
|
|
17
|
|
|
(1,128
|
)
|
||||||
Total intangible liabilities
|
$
|
(116,768
|
)
|
|
$
|
14,477
|
|
|
$
|
(102,291
|
)
|
|
$
|
(118,032
|
)
|
|
$
|
13,310
|
|
|
$
|
(104,722
|
)
|
Years Ending December 31,
|
|
Net Increase in Rental Income
|
|
Increase to Amortization/Property Expenses
|
|
Net
|
||||||
2015 (remaining)
|
|
$
|
(1,040
|
)
|
|
$
|
28,549
|
|
|
$
|
27,509
|
|
2016
|
|
(521
|
)
|
|
33,238
|
|
|
32,717
|
|
|||
2017
|
|
(253
|
)
|
|
30,213
|
|
|
29,960
|
|
|||
2018
|
|
(228
|
)
|
|
30,109
|
|
|
29,881
|
|
|||
2019
|
|
(219
|
)
|
|
30,063
|
|
|
29,844
|
|
|||
Thereafter
|
|
(27,848
|
)
|
|
286,478
|
|
|
258,630
|
|
|||
|
|
$
|
(30,109
|
)
|
|
$
|
438,650
|
|
|
$
|
408,541
|
|
|
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||||
|
Level
|
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
||||||||
Non-recourse debt
(a)
|
3
|
|
$
|
1,849,317
|
|
|
$
|
1,916,971
|
|
|
$
|
1,896,489
|
|
|
$
|
1,961,905
|
|
Loans receivable
(a)
|
3
|
|
82,600
|
|
|
83,970
|
|
|
40,000
|
|
|
41,990
|
|
||||
Other securities
(b)
|
3
|
|
8,426
|
|
|
9,649
|
|
|
9,381
|
|
|
9,649
|
|
||||
Deferred acquisition fees payable
(c)
|
3
|
|
5,474
|
|
|
6,109
|
|
|
9,009
|
|
|
10,077
|
|
||||
CMBS
(d)
|
3
|
|
2,642
|
|
|
8,422
|
|
|
3,053
|
|
|
8,899
|
|
(a)
|
We determined the estimated fair value of our non-recourse debt and note receivable with China Alliance Properties Limited using a discounted cash flow model with rates that take into account the credit of the tenant/obligor 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 tenant/obligor, the time until maturity, and the current market interest rate. Additionally, for our loans receivable with 127 West 23
rd
Manager, LLC and 1185 Broadway LLC, we estimated that the fair values of the loans receivable approximated their carrying values.
|
(b)
|
Amounts at
March 31, 2015
and
December 31, 2014
primarily reflect our interest in a foreign debenture, which is included in Other assets, net in the consolidated financial statements.
|
(c)
|
We determined the estimated fair value of our deferred acquisition fees based on an estimate of discounted cash flows using two significant unobservable inputs, which are the leverage adjusted unsecured spread and an illiquidity adjustment of
355
basis points and
75
basis points, respectively. Significant increases or decreases to these inputs in isolation would result in a significant change in the fair value measurement.
|
(d)
|
The carrying value of our commercial mortgage-backed securities, or CMBS, is inclusive of an impairment charge recognized during the
three months ended March 31, 2015
, as well as accretion related to the estimated cash flows expected to be received. There were no purchases, sales, or impairment charges recognized during the
three months ended March 31, 2014
.
|
|
Three Months Ended March 31, 2015
|
|
Three Months Ended March 31, 2014
|
||||||||||||
|
Fair Value
Measurements
|
|
Total
Impairment
Charges
|
|
Fair Value
Measurements |
|
Total
Impairment
Charges
|
||||||||
Impairment Charges
|
|
|
|
|
|
|
|
|
|
|
|
||||
CMBS
|
$
|
954
|
|
|
$
|
567
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Derivatives Designated
as Hedging Instruments
|
|
|
|
Asset Derivatives Fair Value at
|
|
Liability Derivatives Fair Value at
|
||||||||||||
|
Balance Sheet Location
|
|
March 31, 2015
|
|
December 31, 2014
|
|
March 31, 2015
|
|
December 31, 2014
|
|||||||||
Foreign currency forward contracts
|
|
Other assets, net
|
|
$
|
48,243
|
|
|
$
|
24,051
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest rate swaps
|
|
Other assets, net
|
|
—
|
|
|
71
|
|
|
—
|
|
|
—
|
|
||||
Interest rate swaps
|
|
Accounts payable, accrued expenses and other liabilities
|
|
—
|
|
|
—
|
|
|
(15,005
|
)
|
|
(14,554
|
)
|
||||
Derivatives Not Designated
as Hedging Instruments
|
|
|
|
|
|
|
|
|
|
|
||||||||
Embedded derivatives
|
|
Other assets, net
|
|
207
|
|
|
499
|
|
|
—
|
|
|
—
|
|
||||
Stock warrants
|
|
Other assets, net
|
|
1,683
|
|
|
1,848
|
|
|
—
|
|
|
—
|
|
||||
Foreign currency forward contracts
|
|
Other assets, net
|
|
11,223
|
|
|
5,120
|
|
|
—
|
|
|
—
|
|
||||
Foreign currency forward contracts
|
|
Accounts payable, accrued expenses and other liabilities
|
|
—
|
|
|
—
|
|
|
(9,011
|
)
|
|
(2,904
|
)
|
||||
Swaption
|
|
Other assets, net
|
|
413
|
|
|
505
|
|
|
—
|
|
|
—
|
|
||||
Total derivatives
|
|
|
|
$
|
61,769
|
|
|
$
|
32,094
|
|
|
$
|
(24,016
|
)
|
|
$
|
(17,458
|
)
|
|
|
Amount of Gain (Loss) Recognized in
Other Comprehensive Loss on Derivatives (Effective Portion)
|
||||||
|
|
Three Months Ended March 31,
|
||||||
Derivatives in Cash Flow Hedging Relationships
|
|
2015
|
|
2014
|
||||
Interest rate cap
(a)
|
|
$
|
—
|
|
|
$
|
332
|
|
Interest rate swaps
|
|
(1,451
|
)
|
|
(1,919
|
)
|
||
Foreign currency collars
|
|
—
|
|
|
(116
|
)
|
||
Foreign currency forward contracts
|
|
24,205
|
|
|
(809
|
)
|
||
|
|
|
|
|
||||
Derivatives in Net Investment Hedging Relationships
(b)
|
|
|
|
|
||||
Foreign currency forward contracts
|
|
188
|
|
|
—
|
|
||
|
|
|
|
|
||||
Derivatives Formerly in Net Investment Hedging Relationships
(c)
|
|
|
|
|
||||
Foreign currency forward contracts
|
|
—
|
|
|
61
|
|
||
Total
|
|
$
|
22,942
|
|
|
$
|
(2,451
|
)
|
|
|
|
|
Amount of Gain (Loss) Reclassified from
Other Comprehensive Loss into Income (Effective Portion)
|
||||||
Derivatives in Cash Flow
Hedging Relationships
|
|
Location of Gain (Loss) Reclassified to Income
|
|
Three Months Ended March 31,
|
||||||
|
2015
|
|
2014
(d)
|
|||||||
Interest rate cap
|
|
Interest expense
|
|
$
|
—
|
|
|
$
|
(332
|
)
|
Interest rate swaps
|
|
Interest expense
|
|
(2,284
|
)
|
|
(1,802
|
)
|
||
Foreign currency collars
|
|
Other income and (expenses)
|
|
—
|
|
|
77
|
|
||
Foreign currency forward contracts
|
|
Other income and (expenses)
|
|
3,129
|
|
|
(189
|
)
|
||
Total
|
|
|
|
$
|
845
|
|
|
$
|
(2,246
|
)
|
(a)
|
Includes a gain attributable to noncontrolling interest of
$0.1 million
for the three months ended
March 31, 2014
.
|
(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 loss
until the underlying investment is sold, at which time we reclassify the gain or loss to earnings.
|
(c)
|
In September 2014, a new forward contract was executed to offset this existing forward contract that has not yet reached its maturity. As a result of this transaction, this existing forward contract was de-designated as a hedging instrument. However, the effective portion of the change in fair value (through the date of de-designation) and the settlement of this contract are reported in the foreign currency translation adjustment section of
Other comprehensive loss
until the underlying investment is sold, at which time we will reclassify the gain or loss to earnings.
|
(d)
|
The amounts included in this column for the period presented herein have been revised to reverse the signs that were incorrectly presented when originally filed.
|
|
|
|
|
Amount of Gain (Loss) Recognized in Income on Derivatives
|
||||||
Derivatives Not in Hedging Relationships
|
|
Location of Gain (Loss) Recognized in Income
|
|
Three Months Ended March 31,
|
||||||
|
|
2015
|
|
2014
|
||||||
Embedded credit derivatives
|
|
Other income and (expenses)
|
|
$
|
237
|
|
|
$
|
118
|
|
Foreign currency forward contracts
|
|
Other income and (expenses)
|
|
(4
|
)
|
|
(62
|
)
|
||
Stock warrants
|
|
Other income and (expenses)
|
|
(165
|
)
|
|
—
|
|
||
Swaption
|
|
Other income and (expenses)
|
|
(92
|
)
|
|
(258
|
)
|
||
|
|
|
|
|
|
|
||||
Derivatives in Hedging Relationships
|
|
|
|
|
|
|
||||
Interest rate swaps
(a)
|
|
Interest expense
|
|
84
|
|
|
71
|
|
||
Total
|
|
|
|
$
|
60
|
|
|
$
|
(131
|
)
|
(a)
|
Relates to the ineffective portion of the hedging relationship.
|
Interest Rate Derivatives
|
|
Number of Instruments
|
|
Notional Amount
|
|
Fair Value at
March 31, 2015
(a)
|
||||
Designated as Cash Flow Hedging Instruments
|
|
|
|
|
|
|
|
|||
Interest rate swaps
|
|
7
|
|
190,810
|
|
EUR
|
|
$
|
(6,143
|
)
|
Interest rate swaps
|
|
13
|
|
233,554
|
|
USD
|
|
(8,862
|
)
|
|
Not Designated as Hedging Instrument
|
|
|
|
|
|
|
|
|||
Swaption
|
|
1
|
|
13,230
|
|
USD
|
|
413
|
|
|
|
|
|
|
|
|
|
$
|
(14,592
|
)
|
(a)
|
Fair value amount is based on the exchange rate of the euro at
March 31, 2015
, as applicable.
|
Interest Rate Derivative
|
|
Ownership Interest in Investee at
March 31, 2015
|
|
Number of Instruments
|
|
Notional Amount
|
|
Fair Value at
March 31, 2015
(a)
|
||||
Interest rate swap
|
|
85%
|
|
1
|
|
11,552
|
|
EUR
|
|
$
|
(578
|
)
|
(a)
|
Fair value amount is based on the exchange rate of the euro at
March 31, 2015
.
|
Foreign Currency Derivatives
|
|
Number of Instruments
|
|
Notional Amount
|
|
Fair Value at
March 31, 2015
(a)
|
||||
Designated as Cash Flow Hedging Instruments
|
|
|
|
|
|
|
|
|||
Foreign currency forward contracts
|
|
92
|
|
182,867
|
|
EUR
|
|
$
|
43,548
|
|
Foreign currency forward contracts
|
|
17
|
|
12,239
|
|
NOK
|
|
133
|
|
|
Not Designated as Hedging Instruments
|
|
|
|
|
|
|
|
|||
Foreign currency forward contracts
|
|
2
|
|
90,000
|
|
EUR
|
|
2,212
|
|
|
Designated as Net Investment Hedging Instruments
|
|
|
|
|
|
|
|
|||
Foreign currency forward contracts
|
|
12
|
|
1,123,025
|
|
JPY
|
|
4,475
|
|
|
Foreign currency forward contracts
|
|
5
|
|
7,996
|
|
NOK
|
|
87
|
|
|
|
|
|
|
|
|
|
$
|
50,455
|
|
(a)
|
Fair value amounts are based on the exchange rate of the euro, the Norwegian krone, or the Japanese yen, as applicable, at
March 31, 2015
.
|
•
|
The New York Times Company (
9%
);
|
•
|
Metro Cash & Carry Italia S.p.A. (
8%
);
|
•
|
Agrokor d.d. (
7%
);
|
•
|
KBR, Inc. (
7%
); and
|
•
|
General Parts Inc., Golden State Supply LLC, Straus-Frank Enterprises LLC, General Parts Distribution LLC, and Worldpac Inc. (
6%
).
|
Years Ending December 31,
|
|
Total
|
||
2015 (remainder)
|
|
$
|
56,035
|
|
2016
|
|
246,898
|
|
|
2017
|
|
339,037
|
|
|
2018
|
|
153,430
|
|
|
2019
|
|
38,620
|
|
|
Thereafter through 2039
|
|
1,018,167
|
|
|
|
|
1,852,187
|
|
|
Unamortized discount, net
|
|
(2,870
|
)
|
|
Total
|
|
$
|
1,849,317
|
|
|
Three Months Ended March 31, 2015
|
||||||||||||||
|
Gains and Losses
on Derivative Instruments
|
|
Gains and Losses on Marketable Securities
|
|
Foreign Currency Translation Adjustments
|
|
Total
|
||||||||
Beginning balance
|
$
|
7,311
|
|
|
$
|
(106
|
)
|
|
$
|
(88,212
|
)
|
|
$
|
(81,007
|
)
|
Other comprehensive income (loss) before reclassifications
|
23,581
|
|
|
7
|
|
|
(88,730
|
)
|
|
(65,142
|
)
|
||||
Amounts reclassified from accumulated other comprehensive loss to:
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
2,284
|
|
|
—
|
|
|
—
|
|
|
2,284
|
|
||||
Other income and (expenses)
|
(3,129
|
)
|
|
—
|
|
|
—
|
|
|
(3,129
|
)
|
||||
Total
|
(845
|
)
|
|
—
|
|
|
—
|
|
|
(845
|
)
|
||||
Net current-period Other comprehensive income (loss)
|
22,736
|
|
|
7
|
|
|
(88,730
|
)
|
|
(65,987
|
)
|
||||
Net current-period Other comprehensive loss attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
1,224
|
|
|
1,224
|
|
||||
Ending balance
|
$
|
30,047
|
|
|
$
|
(99
|
)
|
|
$
|
(175,718
|
)
|
|
$
|
(145,770
|
)
|
|
Three Months Ended March 31, 2014
|
||||||||||||||
|
Gains and Losses
on Derivative Instruments |
|
Gains and Losses on Marketable Securities
|
|
Foreign Currency Translation Adjustments
|
|
Total
|
||||||||
Beginning balance
|
$
|
(16,717
|
)
|
|
$
|
(391
|
)
|
|
$
|
3,666
|
|
|
$
|
(13,442
|
)
|
Other comprehensive (loss) income before reclassifications
|
(4,757
|
)
|
|
24
|
|
|
(1,060
|
)
|
|
(5,793
|
)
|
||||
Amounts reclassified from accumulated other comprehensive loss to:
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
2,134
|
|
|
—
|
|
|
—
|
|
|
2,134
|
|
||||
Other income and (expenses)
|
112
|
|
|
—
|
|
|
—
|
|
|
112
|
|
||||
Total
|
2,246
|
|
|
—
|
|
|
—
|
|
|
2,246
|
|
||||
Net current-period Other comprehensive (loss) income
|
(2,511
|
)
|
|
24
|
|
|
(1,060
|
)
|
|
(3,547
|
)
|
||||
Net current-period Other comprehensive (income) loss attributable to noncontrolling interests
|
(149
|
)
|
|
—
|
|
|
4
|
|
|
(145
|
)
|
||||
Ending balance
|
$
|
(19,377
|
)
|
|
$
|
(367
|
)
|
|
$
|
2,610
|
|
|
$
|
(17,134
|
)
|
|
March 31, 2015
|
|
December 31, 2014
|
||||
Number of net-leased properties
|
368
|
|
|
365
|
|
||
Number of operating properties
(a)
|
72
|
|
|
72
|
|
||
Number of tenants
(b)
|
113
|
|
|
112
|
|
||
Total square footage (in thousands)
(c)
|
42,751
|
|
|
41,243
|
|
||
Occupancy
(b)
|
100.0
|
%
|
|
100.0
|
%
|
||
Weighted-average lease term (in years)
(b)
|
13.9
|
|
|
14.1
|
|
||
Number of countries
|
11
|
|
|
11
|
|
||
Total assets (in thousands)
(d)
|
$
|
4,479,340
|
|
|
$
|
4,605,897
|
|
Net investments in real estate (in thousands)
(d)
|
3,009,579
|
|
|
3,062,287
|
|
|
Three Months Ended March 31,
|
||||||
|
2015
|
|
2014
|
||||
Acquisition volume — consolidated (in millions)
(d) (e) (f)
|
$
|
129.0
|
|
|
$
|
19.9
|
|
Acquisition volume — pro rata (in millions)
(c) (e) (f)
|
138.1
|
|
|
98.1
|
|
||
Financing obtained — consolidated (in millions)
(d) (g)
|
17.0
|
|
|
45.0
|
|
||
Financing obtained — pro rata (in millions)
(c) (g) (h)
|
17.0
|
|
|
53.6
|
|
||
Average U.S. dollar/euro exchange rate
(i)
|
1.1272
|
|
|
1.3705
|
|
||
Change in the U.S. CPI
(j)
|
0.6
|
%
|
|
1.4
|
%
|
||
Change in the Harmonized Index of Consumer Prices
(j)
|
0.2
|
%
|
|
0.1
|
%
|
(a)
|
Operating properties are comprised of full or partial ownership interests in 71 self-storage properties, with an average occupancy of
87%
at
March 31, 2015
, and one hotel, all of which are managed by third parties.
|
(b)
|
Excludes operating properties.
|
(c)
|
Represents pro rata basis. See
Terms and Definitions
below for a description of pro rata amounts.
|
(d)
|
Represents consolidated basis.
|
(e)
|
Includes build-to-suit transactions, which are reflected as the total commitment for the build-to-suit funding.
|
(f)
|
The amounts for the
three months ended March 31, 2015
and
2014
include acquisition-related costs and fees, which are included in Acquisition expenses in the consolidated financial statements.
|
(g)
|
No debt was refinanced during the
three months ended March 31, 2015
. Includes a refinancing of $22.8 million obtained during the
three months ended March 31, 2014
.
|
(h)
|
Financing on a pro rata basis during the
three months ended March 31,
2014
includes our share of the non-recourse mortgage financing related to Agrokor d.d., referred to as Agrokor 5.
|
(i)
|
The average conversion rate for the U.S. dollar in relation to the euro decreased during the
three months ended March 31, 2015
as compared to the same period in
2014
, resulting in a negative impact on earnings in the current year period for our euro-denominated investments.
|
(j)
|
Many of our lease agreements include contractual increases indexed to changes in the U.S. Consumer Price Index, or CPI, or similar indices.
|
|
|
Consolidated
|
|
Pro Rata
|
||||||||||
Tenant/Lease Guarantor
|
|
ABR
|
|
Percent
|
|
ABR
|
|
Percent
|
||||||
Metro Cash & Carry Italia S.p.A.
(a)
|
|
$
|
26,262
|
|
|
9
|
%
|
|
$
|
26,262
|
|
|
8
|
%
|
The New York Times Company
|
|
26,057
|
|
|
9
|
%
|
|
14,331
|
|
|
5
|
%
|
||
Agrokor d.d.
(a)
|
|
21,049
|
|
|
8
|
%
|
|
22,265
|
|
|
7
|
%
|
||
General Parts Inc., Golden State Supply LLC, Straus-Frank Enterprises LLC, General Parts Distribution LLC, and Worldpac Inc.
|
|
17,653
|
|
|
6
|
%
|
|
17,653
|
|
|
6
|
%
|
||
KBR, Inc.
|
|
13,956
|
|
|
5
|
%
|
|
13,956
|
|
|
4
|
%
|
||
Lineage Logistics Holdings, LLC
|
|
13,682
|
|
|
5
|
%
|
|
13,682
|
|
|
4
|
%
|
||
Blue Cross and Blue Shield of Minnesota, Inc.
|
|
11,966
|
|
|
4
|
%
|
|
11,966
|
|
|
4
|
%
|
||
Eroski Sociedad Cooperativa
(a)
|
|
8,819
|
|
|
3
|
%
|
|
9,456
|
|
|
3
|
%
|
||
DTS Distribuidora Television Digital SA
(a)
|
|
7,615
|
|
|
3
|
%
|
|
7,615
|
|
|
2
|
%
|
||
RLJ-McLarty-Landers Automotive Holdings, LLC
|
|
6,658
|
|
|
2
|
%
|
|
6,656
|
|
|
2
|
%
|
||
Total
|
|
$
|
153,717
|
|
|
54
|
%
|
|
$
|
143,842
|
|
|
45
|
%
|
(a)
|
ABR amounts are subject to fluctuations in foreign currency exchange rates.
|
|
|
Consolidated
|
|
Pro Rata
|
||||||||||
Region
|
|
ABR
|
|
Percent
|
|
ABR
|
|
Percent
|
||||||
United States
|
|
|
|
|
|
|
|
|
||||||
East
|
|
$
|
54,691
|
|
|
19
|
%
|
|
$
|
42,361
|
|
|
13
|
%
|
South
|
|
53,752
|
|
|
19
|
%
|
|
59,241
|
|
|
19
|
%
|
||
Midwest
|
|
51,541
|
|
|
18
|
%
|
|
56,531
|
|
|
18
|
%
|
||
West
|
|
28,197
|
|
|
10
|
%
|
|
29,167
|
|
|
9
|
%
|
||
United States Total
|
|
188,181
|
|
|
66
|
%
|
|
187,300
|
|
|
59
|
%
|
||
|
|
|
|
|
|
|
|
|
||||||
International
|
|
|
|
|
|
|
|
|
||||||
Italy
|
|
24,723
|
|
|
9
|
%
|
|
24,723
|
|
|
8
|
%
|
||
Croatia
|
|
21,049
|
|
|
7
|
%
|
|
22,265
|
|
|
7
|
%
|
||
Spain
|
|
16,434
|
|
|
6
|
%
|
|
17,071
|
|
|
5
|
%
|
||
Poland
|
|
14,928
|
|
|
5
|
%
|
|
19,020
|
|
|
6
|
%
|
||
Germany
|
|
10,133
|
|
|
3
|
%
|
|
19,112
|
|
|
6
|
%
|
||
United Kingdom
|
|
5,353
|
|
|
2
|
%
|
|
5,353
|
|
|
2
|
%
|
||
Other
(a)
|
|
4,918
|
|
|
2
|
%
|
|
21,520
|
|
|
7
|
%
|
||
International Total
|
|
97,538
|
|
|
34
|
%
|
|
129,064
|
|
|
41
|
%
|
||
|
|
|
|
|
|
|
|
|
||||||
Total
|
|
$
|
285,719
|
|
|
100
|
%
|
|
$
|
316,364
|
|
|
100
|
%
|
|
|
Consolidated
|
|
Pro Rata
|
||||||||||
Property Type
|
|
ABR
|
|
Percent
|
|
ABR
|
|
Percent
|
||||||
Office
|
|
$
|
96,489
|
|
|
34
|
%
|
|
$
|
94,400
|
|
|
30
|
%
|
Warehouse
|
|
69,304
|
|
|
24
|
%
|
|
84,966
|
|
|
27
|
%
|
||
Retail
|
|
58,146
|
|
|
20
|
%
|
|
70,398
|
|
|
22
|
%
|
||
Industrial
|
|
45,686
|
|
|
16
|
%
|
|
46,351
|
|
|
15
|
%
|
||
Other
(b)
|
|
16,094
|
|
|
6
|
%
|
|
20,249
|
|
|
6
|
%
|
||
|
|
$
|
285,719
|
|
|
100
|
%
|
|
$
|
316,364
|
|
|
100
|
%
|
(a)
|
Consolidated includes ABR from tenants in the Netherlands and Japan. Pro rata includes ABR from tenants in the aforementioned countries and Hungary and Norway.
|
(b)
|
Consolidated includes ABR from tenants with the following property types: learning center and sports facility. Pro rata includes ABR from tenants with the aforementioned property types and self-storage.
|
|
|
Consolidated
|
|
Pro Rata
|
||||||||||
Industry Type
|
|
ABR
|
|
Percent
|
|
ABR
|
|
Percent
|
||||||
Retail Stores
|
|
$
|
67,939
|
|
|
24
|
%
|
|
$
|
80,496
|
|
|
25
|
%
|
Business Services
|
|
37,632
|
|
|
13
|
%
|
|
37,557
|
|
|
12
|
%
|
||
Grocery
|
|
29,867
|
|
|
11
|
%
|
|
45,784
|
|
|
14
|
%
|
||
Media: Advertising, Printing, and Publishing
|
|
28,840
|
|
|
10
|
%
|
|
17,115
|
|
|
5
|
%
|
||
Insurance
|
|
12,088
|
|
|
4
|
%
|
|
15,636
|
|
|
5
|
%
|
||
Capital Equipment
|
|
11,906
|
|
|
4
|
%
|
|
11,906
|
|
|
4
|
%
|
||
Consumer Goods: Non-Durable
|
|
10,485
|
|
|
4
|
%
|
|
8,459
|
|
|
3
|
%
|
||
Consumer Services
|
|
9,333
|
|
|
3
|
%
|
|
12,034
|
|
|
4
|
%
|
||
Media: Broadcasting and Subscription
|
|
9,297
|
|
|
3
|
%
|
|
9,297
|
|
|
3
|
%
|
||
Automotive
|
|
9,170
|
|
|
3
|
%
|
|
8,161
|
|
|
3
|
%
|
||
Transportation: Cargo
|
|
8,780
|
|
|
3
|
%
|
|
10,234
|
|
|
3
|
%
|
||
Hotel, Gaming, and Leisure
|
|
8,697
|
|
|
3
|
%
|
|
8,735
|
|
|
3
|
%
|
||
Beverage, Food, and Tobacco
|
|
8,253
|
|
|
3
|
%
|
|
8,253
|
|
|
3
|
%
|
||
Telecommunications
|
|
6,817
|
|
|
2
|
%
|
|
6,841
|
|
|
2
|
%
|
||
High Tech Industries
|
|
5,488
|
|
|
2
|
%
|
|
4,439
|
|
|
1
|
%
|
||
Healthcare and Pharmaceuticals
|
|
5,399
|
|
|
2
|
%
|
|
5,399
|
|
|
2
|
%
|
||
Banking
|
|
4,605
|
|
|
2
|
%
|
|
8,633
|
|
|
3
|
%
|
||
Containers, Packing, and Glass
|
|
3,801
|
|
|
1
|
%
|
|
7,448
|
|
|
2
|
%
|
||
Other
(a)
|
|
7,322
|
|
|
3
|
%
|
|
9,937
|
|
|
3
|
%
|
||
|
|
$
|
285,719
|
|
|
100
|
%
|
|
$
|
316,364
|
|
|
100
|
%
|
(a)
|
Consolidated includes ABR from tenants in the following industries: transportation: consumer; aerospace and defense; chemicals, plastics, and rubber; construction and building; metals and mining; consumer goods: durable; and environmental industries. Pro rata includes ABR from tenants in the aforementioned industries and energy: oil and gas.
|
|
|
Consolidated
|
|
Pro Rata
|
||||||||||||||||
Year of Lease Expiration
(a)
|
|
Number of Leases Expiring
|
|
ABR
|
|
Percent
|
|
Number of Leases Expiring
|
|
ABR
|
|
Percent
|
||||||||
Remaining 2015
(b)
|
|
18
|
|
|
$
|
1,211
|
|
|
—
|
%
|
|
19
|
|
|
$
|
1,213
|
|
|
—
|
%
|
2016
|
|
10
|
|
|
3,670
|
|
|
1
|
%
|
|
11
|
|
|
3,709
|
|
|
1
|
%
|
||
2017
|
|
4
|
|
|
575
|
|
|
—
|
%
|
|
4
|
|
|
575
|
|
|
—
|
%
|
||
2018
|
|
2
|
|
|
124
|
|
|
—
|
%
|
|
5
|
|
|
146
|
|
|
—
|
%
|
||
2019
|
|
3
|
|
|
342
|
|
|
—
|
%
|
|
3
|
|
|
342
|
|
|
—
|
%
|
||
2020
|
|
2
|
|
|
120
|
|
|
—
|
%
|
|
2
|
|
|
120
|
|
|
—
|
%
|
||
2021
|
|
3
|
|
|
1,344
|
|
|
1
|
%
|
|
3
|
|
|
949
|
|
|
—
|
%
|
||
2022
|
|
1
|
|
|
2,473
|
|
|
1
|
%
|
|
2
|
|
|
3,921
|
|
|
1
|
%
|
||
2023
|
|
1
|
|
|
76
|
|
|
—
|
%
|
|
2
|
|
|
4,105
|
|
|
2
|
%
|
||
2024
|
|
7
|
|
|
38,218
|
|
|
14
|
%
|
|
11
|
|
|
31,922
|
|
|
10
|
%
|
||
2025
|
|
13
|
|
|
15,233
|
|
|
5
|
%
|
|
11
|
|
|
15,233
|
|
|
5
|
%
|
||
2026
|
|
10
|
|
|
10,781
|
|
|
4
|
%
|
|
17
|
|
|
21,906
|
|
|
7
|
%
|
||
2027
|
|
23
|
|
|
30,007
|
|
|
11
|
%
|
|
23
|
|
|
30,007
|
|
|
10
|
%
|
||
2028
|
|
26
|
|
|
37,165
|
|
|
13
|
%
|
|
28
|
|
|
41,300
|
|
|
13
|
%
|
||
2029
|
|
5
|
|
|
6,443
|
|
|
2
|
%
|
|
5
|
|
|
6,443
|
|
|
2
|
%
|
||
Thereafter
|
|
50
|
|
|
137,937
|
|
|
48
|
%
|
|
54
|
|
|
154,473
|
|
|
49
|
%
|
||
|
|
178
|
|
|
$
|
285,719
|
|
|
100
|
%
|
|
200
|
|
|
$
|
316,364
|
|
|
100
|
%
|
(a)
|
Assumes tenant does not exercise renewal option.
|
(b)
|
Month-to-month leases are included in 2015 ABR.
|
State
|
|
Number of Properties
|
|
Square Footage
|
||
California
|
|
29
|
|
|
2,079
|
|
Illinois
|
|
13
|
|
|
900
|
|
Florida
|
|
7
|
|
|
486
|
|
Texas
|
|
5
|
|
|
437
|
|
Hawaii
|
|
4
|
|
|
259
|
|
Louisiana
|
|
3
|
|
|
196
|
|
Georgia
|
|
2
|
|
|
79
|
|
Alabama
|
|
1
|
|
|
130
|
|
North Carolina
|
|
1
|
|
|
80
|
|
Mississippi
|
|
1
|
|
|
61
|
|
Consolidated Total
|
|
66
|
|
|
4,707
|
|
New York (45% ownership interest)
|
|
5
|
|
|
272
|
|
Pro Rata Total
(a)
|
|
71
|
|
|
4,979
|
|
(a)
|
See
Terms and Definitions
below for a description of pro rata amounts.
|
|
Three Months Ended March 31,
|
||||||
|
2015
|
|
2014
|
||||
Total revenues
|
$
|
98,750
|
|
|
$
|
101,149
|
|
Net income attributable to CPA
®
:17 – Global
|
14,580
|
|
|
8,801
|
|
||
|
|
|
|
||||
Cash distributions paid
|
53,378
|
|
|
51,569
|
|
||
|
|
|
|
||||
Net cash provided by operating activities
|
55,520
|
|
|
46,143
|
|
||
Net cash used in investing activities
|
(166,412
|
)
|
|
(154,623
|
)
|
||
Net cash used in financing activities
|
(27,176
|
)
|
|
(22,353
|
)
|
||
|
|
|
|
||||
Supplemental financial measures:
|
|
|
|
||||
Funds from operations
(a)
|
46,334
|
|
|
39,602
|
|
||
Modified funds from operations
(a)
|
46,660
|
|
|
40,500
|
|
(a)
|
We consider the performance metrics listed above, including Funds from operations, or FFO, and Modified funds from operations, or MFFO, which are supplemental measures that are not defined by GAAP, both referred to as non-GAAP measures, to be important measures in the evaluation of our results of operations and capital resources. We evaluate our results of operations with a primary focus on the ability to generate cash flow necessary to meet our objective of funding distributions to stockholders. See
Supplemental Financial Measures
below for our definitions of these non-GAAP measures and reconciliations to their most directly comparable GAAP measures.
|
|
Three Months Ended March 31,
|
||||||||||
|
2015
|
|
2014
|
|
Change
|
||||||
Revenues
|
|
|
|
|
|
||||||
Lease revenues
|
$
|
76,857
|
|
|
$
|
76,643
|
|
|
$
|
214
|
|
Operating property revenues
|
11,838
|
|
|
16,334
|
|
|
(4,496
|
)
|
|||
Reimbursable tenant costs
|
7,505
|
|
|
6,263
|
|
|
1,242
|
|
|||
Interest income and other
|
2,550
|
|
|
1,909
|
|
|
641
|
|
|||
|
98,750
|
|
|
101,149
|
|
|
(2,399
|
)
|
|||
Operating Expenses
|
|
|
|
|
|
||||||
Depreciation and amortization:
|
|
|
|
|
|
||||||
Net-leased properties
|
22,306
|
|
|
21,702
|
|
|
604
|
|
|||
Operating properties
|
3,258
|
|
|
4,138
|
|
|
(880
|
)
|
|||
|
25,564
|
|
|
25,840
|
|
|
(276
|
)
|
|||
Property expenses:
|
|
|
|
|
|
||||||
Reimbursable tenant costs
|
7,505
|
|
|
6,263
|
|
|
1,242
|
|
|||
Asset management fees
|
7,162
|
|
|
6,620
|
|
|
542
|
|
|||
Operating properties
|
4,857
|
|
|
9,425
|
|
|
(4,568
|
)
|
|||
Net-leased properties
|
3,007
|
|
|
3,045
|
|
|
(38
|
)
|
|||
|
22,531
|
|
|
25,353
|
|
|
(2,822
|
)
|
|||
General and administrative
|
4,843
|
|
|
6,201
|
|
|
(1,358
|
)
|
|||
Acquisition expenses
|
603
|
|
|
1,129
|
|
|
(526
|
)
|
|||
Impairment charge
|
567
|
|
|
—
|
|
|
567
|
|
|||
|
54,108
|
|
|
58,523
|
|
|
(4,415
|
)
|
|||
Operating Income
|
44,642
|
|
|
42,626
|
|
|
2,016
|
|
|||
Other Income and Expenses
|
|
|
|
|
|
||||||
Equity in earnings (losses) of equity method investments in real estate
|
3,215
|
|
|
(2,864
|
)
|
|
6,079
|
|
|||
Other income and (expenses)
|
(3,394
|
)
|
|
683
|
|
|
(4,077
|
)
|
|||
Interest expense
|
(22,025
|
)
|
|
(23,329
|
)
|
|
1,304
|
|
|||
|
(22,204
|
)
|
|
(25,510
|
)
|
|
3,306
|
|
|||
Income before income taxes and gain on sale of real estate
|
22,438
|
|
|
17,116
|
|
|
5,322
|
|
|||
Provision for income taxes
|
(791
|
)
|
|
(638
|
)
|
|
(153
|
)
|
|||
Income before gain on sale of real estate
|
21,647
|
|
|
16,478
|
|
|
5,169
|
|
|||
Gain on sale of real estate, net of tax
|
2,197
|
|
|
—
|
|
|
2,197
|
|
|||
Net Income
|
23,844
|
|
|
16,478
|
|
|
7,366
|
|
|||
Net income attributable to noncontrolling interests
|
(9,264
|
)
|
|
(7,677
|
)
|
|
(1,587
|
)
|
|||
Net Income Attributable to CPA
®
:17 – Global
|
$
|
14,580
|
|
|
$
|
8,801
|
|
|
$
|
5,779
|
|
MFFO
|
$
|
46,660
|
|
|
$
|
40,500
|
|
|
$
|
6,160
|
|
|
Three Months Ended March 31,
|
||||||||||
|
2015
|
|
2014
|
|
Change
|
||||||
Existing Net-Leased Properties
|
|
|
|
|
|
||||||
Lease revenues
|
$
|
73,845
|
|
|
$
|
76,328
|
|
|
$
|
(2,483
|
)
|
Depreciation and amortization
|
(20,227
|
)
|
|
(21,130
|
)
|
|
903
|
|
|||
Property expenses
|
(2,918
|
)
|
|
(3,045
|
)
|
|
127
|
|
|||
Property level contribution
|
50,700
|
|
|
52,153
|
|
|
(1,453
|
)
|
|||
Recently Acquired Net-Leased Properties
|
|
|
|
|
|
||||||
Lease revenues
|
3,012
|
|
|
315
|
|
|
2,697
|
|
|||
Depreciation and amortization
|
(2,079
|
)
|
|
(479
|
)
|
|
(1,600
|
)
|
|||
Property expenses
|
(89
|
)
|
|
—
|
|
|
(89
|
)
|
|||
Property level contribution
|
844
|
|
|
(164
|
)
|
|
1,008
|
|
|||
Operating Properties
|
|
|
|
|
|
||||||
Revenues
|
11,048
|
|
|
9,866
|
|
|
1,182
|
|
|||
Other real estate revenue
|
790
|
|
|
782
|
|
|
8
|
|
|||
Property expenses
|
(4,857
|
)
|
|
(4,731
|
)
|
|
(126
|
)
|
|||
Depreciation and amortization
|
(3,258
|
)
|
|
(3,598
|
)
|
|
340
|
|
|||
Property level contribution
|
3,723
|
|
|
2,319
|
|
|
1,404
|
|
|||
Properties Sold
|
|
|
|
|
|
||||||
Revenues
|
—
|
|
|
5,686
|
|
|
(5,686
|
)
|
|||
Property expenses
|
—
|
|
|
(4,694
|
)
|
|
4,694
|
|
|||
Depreciation and amortization
|
—
|
|
|
(633
|
)
|
|
633
|
|
|||
Property level contribution
|
—
|
|
|
359
|
|
|
(359
|
)
|
|||
Total Property Level Contribution
|
|
|
|
|
|
||||||
Lease revenues
|
76,857
|
|
|
76,643
|
|
|
214
|
|
|||
Property expenses
|
(3,007
|
)
|
|
(3,045
|
)
|
|
38
|
|
|||
Operating property revenues
|
11,838
|
|
|
16,334
|
|
|
(4,496
|
)
|
|||
Operating property expenses
|
(4,857
|
)
|
|
(9,425
|
)
|
|
4,568
|
|
|||
Depreciation and amortization
|
(25,564
|
)
|
|
(25,840
|
)
|
|
276
|
|
|||
Property Level Contribution
|
55,267
|
|
|
54,667
|
|
|
600
|
|
|||
Add other income:
|
|
|
|
|
|
||||||
Non-rent related revenue and other
|
2,550
|
|
|
1,909
|
|
|
641
|
|
|||
Less other expenses:
|
|
|
|
|
|
||||||
Asset management fees
|
(7,162
|
)
|
|
(6,620
|
)
|
|
(542
|
)
|
|||
General and administrative
|
(4,843
|
)
|
|
(6,201
|
)
|
|
1,358
|
|
|||
Acquisition expenses
|
(603
|
)
|
|
(1,129
|
)
|
|
526
|
|
|||
Impairment charge
|
(567
|
)
|
|
—
|
|
|
(567
|
)
|
|||
Operating Income
|
$
|
44,642
|
|
|
$
|
42,626
|
|
|
$
|
2,016
|
|
|
March 31, 2015
|
|
December 31, 2014
|
||||
Carrying Value
|
|
|
|
||||
Fixed rate
|
$
|
1,237,555
|
|
|
$
|
1,259,320
|
|
Variable rate:
|
|
|
|
||||
Amount subject to interest rate swaps
|
413,473
|
|
|
434,202
|
|
||
Floating interest rate mortgage loans
|
162,277
|
|
|
166,932
|
|
||
Amount of fixed rate debt subject to interest rate reset features
|
36,012
|
|
|
36,035
|
|
||
|
611,762
|
|
|
637,169
|
|
||
|
$
|
1,849,317
|
|
|
$
|
1,896,489
|
|
Percent of Total Debt
|
|
|
|
||||
Fixed rate
|
67
|
%
|
|
66
|
%
|
||
Variable rate
|
33
|
%
|
|
34
|
%
|
||
|
100
|
%
|
|
100
|
%
|
||
Weighted-Average Interest Rate at End of Period
|
|
|
|
||||
Fixed rate
|
5.3
|
%
|
|
5.3
|
%
|
||
Variable rate
(a)
|
4.0
|
%
|
|
4.0
|
%
|
(a)
|
The impact of our derivative instruments is reflected in the weighted-average interest rates.
|
|
Total
|
|
Less than
1 year
|
|
1-3 years
|
|
3-5 years
|
|
More than
5 years
|
||||||||||
Non-recourse debt — principal
(a)
|
$
|
1,852,187
|
|
|
$
|
62,788
|
|
|
$
|
601,990
|
|
|
$
|
191,323
|
|
|
$
|
996,086
|
|
Deferred acquisition fees — principal
|
7,032
|
|
|
4,177
|
|
|
2,855
|
|
|
—
|
|
|
—
|
|
|||||
Interest on borrowings and deferred acquisition fees
|
464,054
|
|
|
87,565
|
|
|
145,734
|
|
|
107,959
|
|
|
122,796
|
|
|||||
Subordinated disposition fees
(b)
|
202
|
|
|
—
|
|
|
—
|
|
|
202
|
|
|
—
|
|
|||||
Capital commitments
(c)
|
24,709
|
|
|
24,379
|
|
|
—
|
|
|
330
|
|
|
—
|
|
|||||
Operating and other lease commitments
(d)
|
76,226
|
|
|
3,244
|
|
|
6,746
|
|
|
6,941
|
|
|
59,295
|
|
|||||
Asset retirement obligations, net
(e)
|
23,465
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,465
|
|
|||||
|
$
|
2,447,875
|
|
|
$
|
182,153
|
|
|
$
|
757,325
|
|
|
$
|
306,755
|
|
|
$
|
1,201,642
|
|
(a)
|
Excludes
$2.9 million
of unamortized discount, net, on two notes, which was included in Non-recourse debt at
March 31, 2015
.
|
(b)
|
Represents amounts that may be payable to the advisor in connection with sales of assets if minimum stockholder returns are satisfied (
Note 4
). There can be no assurance as to whether or when these fees will be paid.
|
(c)
|
(d)
|
Operating commitments consist of rental obligations under ground leases. Other lease commitments consist of our share of future rents payable for the purpose of leasing office space pursuant to the advisory agreement. Amounts are allocated among WPC, the CPA
®
REITs, and CWI (
Note 4
).
|
(e)
|
Represents the future amount of obligations estimated for the removal of asbestos and environmental waste in connection with several of our acquisitions, payable upon the retirement or sale of the assets.
|
|
Three Months Ended March 31,
|
||||||
|
2015
|
|
2014
(a)
|
||||
Net income attributable to CPA
®
:17 – Global
|
$
|
14,580
|
|
|
$
|
8,801
|
|
Adjustments:
|
|
|
|
||||
Depreciation and amortization of real property
|
25,509
|
|
|
25,111
|
|
||
Gain on sale of real estate
|
(2,197
|
)
|
|
—
|
|
||
Proportionate share of adjustments to equity in net income of partially-owned entities to arrive at FFO:
|
|
|
|
||||
Depreciation and amortization of real property
|
8,580
|
|
|
5,857
|
|
||
Proportionate share of adjustments for noncontrolling interests to arrive at FFO
|
(138
|
)
|
|
(167
|
)
|
||
Total adjustments
|
31,754
|
|
|
30,801
|
|
||
FFO — as defined by NAREIT
|
46,334
|
|
|
39,602
|
|
||
Adjustments:
|
|
|
|
||||
Unrealized losses (gains) on foreign currency, derivatives, and other
|
6,819
|
|
|
(488
|
)
|
||
Straight-line and other rent adjustments
(b)
|
(5,102
|
)
|
|
(4,978
|
)
|
||
Realized (gains) losses on foreign currency, derivatives and other
|
(3,169
|
)
|
|
134
|
|
||
Acquisition expenses
(c)
|
603
|
|
|
1,808
|
|
||
Impairment charge
(d)
|
567
|
|
|
—
|
|
||
Above- and below-market rent intangible lease amortization, net
(e)
|
(366
|
)
|
|
(66
|
)
|
||
Accretion of discounts on debt investments, net
|
(75
|
)
|
|
(130
|
)
|
||
Loss on extinguishment of debt
|
—
|
|
|
270
|
|
||
Unrealized gains on mark-to-market adjustments
|
—
|
|
|
(48
|
)
|
||
Proportionate share of adjustments to equity in net income of partially-owned entities to arrive at MFFO:
|
|
|
|
||||
Acquisition expenses
(c)
|
384
|
|
|
4,105
|
|
||
Above- and below-market rent intangible lease amortization, net
(e)
|
376
|
|
|
402
|
|
||
Realized losses on foreign currency, derivatives, and other
|
101
|
|
|
32
|
|
||
Amortization of premiums on debt investments, net
|
95
|
|
|
—
|
|
||
Straight-line and other rent adjustments
(b)
|
(73
|
)
|
|
(221
|
)
|
||
Unrealized losses on mark-to-market adjustments
|
—
|
|
|
38
|
|
||
Unrealized gains on foreign currency, derivatives, and other
|
—
|
|
|
(1
|
)
|
||
Proportionate share of adjustments for noncontrolling interests to arrive at MFFO
|
166
|
|
|
41
|
|
||
Total adjustments
|
326
|
|
|
898
|
|
||
MFFO
|
$
|
46,660
|
|
|
$
|
40,500
|
|
(a)
|
In the course of preparing our 2014 consolidated financial statements, we discovered an error related to our accounting for a subsidiary’s functional currency. We corrected this error, and other errors previously recorded as out-of-period adjustments, and revised our consolidated financial statements for all prior periods impacted. Accordingly, our financial results for the prior period presented herein have been revised for the correction of such errors (
Note 2
). The correction of errors resulted in an increase to Net income attributable to CPA
®
:17 – Global of
$0.2 million
, FFO of
$0.2 million
, and MFFO of
$0.4 million
for the
three months ended March 31, 2014
.
|
(b)
|
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.
|
(c)
|
Prior to the first quarter of 2015, includes Acquisition expenses and amortization of deferred acquisition fees. Amortization of deferred acquisition fees totaled
$0.7 million
for the
three months ended March 31, 2015
and is included in depreciation and amortization of real property. 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 and amortization of deferred acquisition fees, 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 the advisor or third parties. Acquisition fees and expenses under GAAP are considered operating expenses and as expenses included in the determination of net income, a performance measure under GAAP. All paid and accrued acquisition fees and expenses will have negative 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)
|
An impairment charge was incurred on our CMBS portfolio and is considered a non-real estate impairment. As such, this impairment charge was not included in our computation of FFO as defined by NAREIT but is included as an adjustment in arriving at MFFO as this charge is not directly related or attributable to our operations.
|
(e)
|
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.
|
|
2015 (Remainder)
|
|
2016
|
|
2017
|
|
2018
|
|
2019
|
|
Thereafter
|
|
Total
|
|
Fair value
|
||||||||||||||||
Fixed-rate debt
(a)
|
$
|
50,806
|
|
|
$
|
65,728
|
|
|
$
|
174,723
|
|
|
$
|
26,587
|
|
|
$
|
36,571
|
|
|
$
|
882,223
|
|
|
$
|
1,236,638
|
|
|
$
|
1,301,366
|
|
Variable-rate debt
(a)
|
$
|
5,229
|
|
|
$
|
181,170
|
|
|
$
|
164,314
|
|
|
$
|
126,843
|
|
|
$
|
2,049
|
|
|
$
|
135,944
|
|
|
$
|
615,549
|
|
|
$
|
615,605
|
|
(a)
|
Amounts are based on the exchange rate at
March 31, 2015
, as applicable.
|
Lease Revenues
(a)
|
|
2015 (Remainder)
|
|
2016
|
|
2017
|
|
2018
|
|
2019
|
|
Thereafter
|
|
Total
|
||||||||||||||
Euro
(c)
|
|
$
|
67,713
|
|
|
$
|
90,482
|
|
|
$
|
90,248
|
|
|
$
|
90,248
|
|
|
$
|
90,248
|
|
|
$
|
878,791
|
|
|
$
|
1,307,730
|
|
British pound sterling
(d)
|
|
4,412
|
|
|
5,991
|
|
|
5,975
|
|
|
5,975
|
|
|
5,975
|
|
|
66,789
|
|
|
95,117
|
|
|||||||
Japanese yen
(e)
|
|
1,862
|
|
|
2,532
|
|
|
2,544
|
|
|
2,544
|
|
|
2,544
|
|
|
5,707
|
|
|
17,733
|
|
|||||||
|
|
$
|
73,987
|
|
|
$
|
99,005
|
|
|
$
|
98,767
|
|
|
$
|
98,767
|
|
|
$
|
98,767
|
|
|
$
|
951,287
|
|
|
$
|
1,420,580
|
|
Debt Service
(a) (b)
|
|
2015 (Remainder)
|
|
2016
|
|
2017
|
|
2018
|
|
2019
|
|
Thereafter
|
|
Total
|
||||||||||||||
Euro
(c)
|
|
$
|
57,783
|
|
|
$
|
208,932
|
|
|
$
|
122,338
|
|
|
$
|
16,917
|
|
|
$
|
5,041
|
|
|
$
|
78,554
|
|
|
$
|
489,565
|
|
British pound sterling
(d)
|
|
1,290
|
|
|
14,195
|
|
|
1,480
|
|
|
1,442
|
|
|
13,391
|
|
|
—
|
|
|
31,798
|
|
|||||||
Japanese yen
(e)
|
|
325
|
|
|
435
|
|
|
22,170
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22,930
|
|
|||||||
|
|
$
|
59,398
|
|
|
$
|
223,562
|
|
|
$
|
145,988
|
|
|
$
|
18,359
|
|
|
$
|
18,432
|
|
|
$
|
78,554
|
|
|
$
|
544,293
|
|
(a)
|
Amounts are based on the applicable exchange rates at
March 31, 2015
. Contractual rents and debt obligations are denominated in the functional currency of the country of each property. Our foreign operations denominated in the Norwegian krone and Indian rupee are related to an unconsolidated jointly-owned investment and a foreign debenture, respectively, and are excluded from the amounts in the tables.
|
(b)
|
Interest on unhedged variable-rate debt obligations was calculated using the applicable annual interest rates and balances outstanding at
March 31, 2015
.
|
(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 estimated property-level cash flow at
March 31, 2015
of
$8.2 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 estimated property-level cash flow at
March 31, 2015
of
$0.6 million
.
|
(e)
|
We estimate that, for a 1% increase or decrease in the exchange rate between the Japanese yen and the U.S. dollar, there would be a corresponding change in the projected estimated property-level cash flow at
March 31, 2015
of less than
$0.1 million
.
|
Exhibit No.
|
|
Description
|
|
Method of Filing
|
|
4.1
|
|
|
Amended and Restated 2007 Distribution Reinvestment Plan
|
|
Filed herewith
|
|
|
|
|
|
|
10.1
|
|
|
Amended and Restated Agreement of Limited Partnership of CPA
®
:17 Limited Partnership dated January 1, 2015, by and among Corporate Property Associates 17 – Global Incorporated and W. P. Carey Holdings, LLC
|
|
Incorporated by reference to Exhibit 10.1 to Annual Report on Form 10-K for the year ended December 31, 2014 filed March 31, 2015
|
|
|
|
|
|
|
10.2
|
|
|
Amended and Restated Advisory Agreement dated as of January 1, 2015, among Corporate Property Associates 17 – Global Incorporated, CPA
®
:17 Limited Partnership, and Carey Asset Management Corp.
|
|
Incorporated by reference to Exhibit 10.12 to Annual Report on Form 10-K for W. P. Carey Inc. for the year ended December 31, 2014 filed March 2, 2015
|
|
|
|
|
|
|
10.3
|
|
|
Amended and Restated Asset Management Agreement dated as of May 13, 2015, by and among Corporate Property Associates 17 – Global Incorporated, CPA
®
:17 Limited Partnership, and W. P. Carey & Co. B.V.
|
|
Filed herewith
|
|
|
|
|
|
|
31.1
|
|
|
Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
Filed herewith
|
|
|
|
|
|
|
31.2
|
|
|
Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
Filed herewith
|
|
|
|
|
|
|
32
|
|
|
Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
Filed herewith
|
101
|
|
|
The following materials from Corporate Property Associates 17 – Global Incorporated’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2015, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets at March 31, 2015 and December 31, 2014, (ii) Consolidated Statements of Income for the three months ended March 31, 2015 and 2014, (iii) Consolidated Statements of Comprehensive (Loss) Income for the three months ended March 31, 2015 and 2014, (iv) Consolidated Statements of Equity for the three months ended March 31, 2015 and 2014, (v) Consolidated Statements of Cash Flows for the three months ended March 31, 2015 and 2014, and (vi) Notes to Consolidated Financial Statements.
|
|
Filed herewith
|
|
|
|
Corporate Property Associates 17 – Global Incorporated
|
Date:
|
May 15, 2015
|
|
|
|
|
By:
|
/s/ Catherine D. Rice
|
|
|
|
Catherine D. Rice
|
|
|
|
Chief Financial Officer
|
|
|
|
(Principal Financial Officer)
|
|
|
|
|
Date:
|
May 15, 2015
|
|
|
|
|
By:
|
/s/ Hisham A. Kader
|
|
|
|
Hisham A. Kader
|
|
|
|
Chief Accounting Officer
|
|
|
|
(Principal Accounting Officer)
|
Exhibit No.
|
|
Description
|
|
Method of Filing
|
|
4.1
|
|
|
Amended and Restated 2007 Distribution Reinvestment Plan
|
|
Filed herewith
|
|
|
|
|
|
|
10.1
|
|
|
Amended and Restated Agreement of Limited Partnership of CPA
®
:17 Limited Partnership dated January 1, 2015, by and among Corporate Property Associates 17 – Global Incorporated and W. P. Carey Holdings, LLC
|
|
Incorporated by reference to Exhibit 10.1 to Annual Report on Form 10-K for the year ended December 31, 2014 filed March 31, 2015
|
|
|
|
|
|
|
10.2
|
|
|
Amended and Restated Advisory Agreement dated as of January 1, 2015, among Corporate Property Associates 17 – Global Incorporated, CPA
®
:17 Limited Partnership, and Carey Asset Management Corp.
|
|
Incorporated by reference to Exhibit 10.12 to Annual Report on Form 10-K for W. P. Carey Inc. for the year ended December 31, 2014 filed March 2, 2015
|
|
|
|
|
|
|
10.3
|
|
|
Amended and Restated Asset Management Agreement dated as of May 13, 2015, by and among Corporate Property Associates 17 – Global Incorporated, CPA
®
:17 Limited Partnership, and W. P. Carey & Co. B.V.
|
|
Filed herewith
|
|
|
|
|
|
|
31.1
|
|
|
Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
Filed herewith
|
|
|
|
|
|
|
31.2
|
|
|
Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
Filed herewith
|
|
|
|
|
|
|
32
|
|
|
Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
Filed herewith
|
101
|
|
|
The following materials from Corporate Property Associates 17 – Global Incorporated’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2015, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets at March 31, 2015 and December 31, 2014, (ii) Consolidated Statements of Income for the three months ended March 31, 2015 and 2014, (iii) Consolidated Statements of Comprehensive (Loss) Income for the three months ended March 31, 2015 and 2014, (iv) Consolidated Statements of Equity for the three months ended March 31, 2015 and 2014, (v) Consolidated Statements of Cash Flows for the three months ended March 31, 2015 and 2014, and (vi) Notes to Consolidated Financial Statements.
|
|
Filed herewith
|
Name:
|
Thomas E. Zacharias
|
Title:
|
Chief Operating Officer
|
Name:
|
Thomas E. Zacharias
|
Title:
|
Chief Operating Officer
|
Name:
|
Kelly van Krieken
|
Title:
|
Managing Director
|
Name:
|
Gawein Heymans
|
Title:
|
Managing Director
|
Transaction Type
|
Flat Rate (per Transaction)
|
Acquisitions
|
0.25% of Total Investment Cost
|
Asset Management Transactions:
|
|
Financings
|
$20,000
|
Lease Amendments – Simple
|
$7,000
|
Lease Amendments – Complex
|
$50,000
|
Dispositions
|
$25,000
|
Lines of Credit
|
$100,000
|
Other Corporate Matters
|
$2,000
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Corporate Property Associates 17 – Global Incorporated;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an Annual Report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Corporate Property Associates 17 – Global Incorporated;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an Annual Report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
1.
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Corporate Property Associates 17 – Global Incorporated.
|