UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q



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

		~~For the quarterly period ended September 30, 2017~~

or

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

		~~For the transition period from~~ to

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

For the quarterly period ended September 30, 2021

☐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: 000-54970

CORPORATE PROPERTY ASSOCIATES 18 – GLOBAL INCORPORATED

(Exact name of registrant as specified in its charter)


Maryland				90-0885534
(State of incorporation)				(I.R.S. Employer Identification No.)

~~Maryland~~One Manhattan West, 395 9th Avenue, 58th Floor					~~90-0885534~~
~~(State of incorporation)~~New York,		New York		~~(I.R.S. Employer Identification No.)~~10001

~~50 Rockefeller Plaza~~
~~New York, New York~~	~~10020~~
(Address of principal executive offices)			(Zip Code)

Investor Relations (212) 492-8920

(212) 492-1100

(Registrant’s telephone numbers, including area code)

Securities registered pursuant to Section 12(b) of the Act: None

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

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

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

Large accelerated filer

☐

Accelerated filer

☐

Non-accelerated filer

☑

~~Large accelerated filer~~ o

~~Accelerated filer~~ o

~~Non-accelerated filer~~ þ

~~(Do not check if a smaller reporting company)~~

Smaller reporting companyo

☐

Emerging growth companyo

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o☐

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

Registrant has ~~111,470,894~~120,585,664 shares of Class A common stock, $0.001 par value, and ~~31,562,434~~31,649,048 shares of Class C common stock, $0.001 par value, outstanding at November ~~10, 2017.~~

3, 2021.

~~INDEX~~

INDEX

	~~Page No.~~
			Page No.
PART I — FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
		Condensed Consolidated Balance Sheets as of September 30, 2021 and December 31, 2020	2
		Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2021 and 2020	3
		Condensed Consolidated Statements of Comprehensive Income ~~(Loss)~~for the Three and Nine Months Ended September 30, 2021 and 2020	4
		Condensed Consolidated Statements of Equity for the Three and Nine Months Ended September 30, 2021 and 2020	5
		Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2021 and 2020	67
		Notes to Condensed Consolidated Financial Statements	78
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			3129
Item 3. Quantitative and Qualitative Disclosures About Market Risk			5751
Item 4.Controls and Procedures			6053

PART II — OTHER INFORMATION
Item 2. Unregistered Sales of Equity Securities			6154
Item 6.Exhibits			6255
Signatures			6356

Forward-Looking Statements

This Quarterly Report on Form 10-Q ~~or this Report,~~(this “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. These forward-looking statements include, but are not limited to, statements regarding: the timing of any future liquidity event; our corporate strategy and estimated or future economic performance and results, including our expectations surrounding the impact of the novel coronavirus (“COVID-19”) pandemic on our business, financial condition, liquidity, results of operations, and prospects; the amount and timing of any future distributions; our capital structure, future capital expenditure levels (including any plans to fund our future liquidity needs), and future leverage and debt service obligations; statements that we make regarding our ability to remain qualified for taxation as a real estate investment trust (“REIT”); the impact of recently issued accounting pronouncements and other regulatory activity; and the general economic outlook, including the continued impact of the COVID-19 pandemic.

These statements are based on the current expectations of our management. It is important to note that our actual results could be materially different from those projected in such forward-looking statements. There are a number of risks and uncertainties that could cause actual results to differ materially from these forward-looking statements. Other unknown or unpredictable risks or uncertainties, like the risks related to the effects of pandemics and global outbreaks of contagious diseases (such as the current COVID-19 pandemic) or the fear of such outbreaks, could also have material adverse effects on our business, financial condition, liquidity, results of operations, and prospects. 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 that 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 ~~or the SEC,~~(“SEC”), including but not limited to those described in Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, ~~2016,~~2020, as filed with the SEC on ~~March 14, 2017, or~~February 25, 2021 (the “2020 Annual Report”). Moreover, because we operate in a very competitive and rapidly changing environment, new risks are likely to emerge from time to time. Given these risks and uncertainties, shareholders are cautioned not to place undue reliance on these forward-looking statements as a prediction of future results, which speak only as of the ~~2016 Annual Report.~~date of this Report, unless noted otherwise. Except as required by federal securities laws and the rules and regulations of the SEC, we do not undertake to revise or update any forward-looking statements.

All references to “Notes” throughout the document refer to the footnotes to the condensed consolidated financial statements of the registrant in Part I, Item 1. Financial Statements (Unaudited).

~~CPA~~^®:CPA:18 – Global 9/30/~~2017~~2021 10-Q– 1

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements.

CORPORATE PROPERTY ASSOCIATES 18 – GLOBAL INCORPORATED

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in thousands, except share and per share amounts)


	September 30, 2021		December 31, 2020
Assets
Investments in real estate:
Real estate — Land, buildings and improvements	$	1,547,006	$	1,440,354
Operating real estate — Land, buildings and improvements	476,532		596,998
Real estate under construction	92,955		180,055
Net investments in direct financing leases	16,891		16,933
In-place lease and other intangible assets	285,719		293,075
Investments in real estate	2,419,103		2,527,415
Accumulated depreciation and amortization	(434,336)		(403,171)
Assets held for sale, net	11,111		—
Net investments in real estate	1,995,878		2,124,244
Cash and cash equivalents	93,477		62,346
Other assets, net	145,294		172,328
Total assets (a)	$	2,234,649	$	2,358,918
Liabilities and Equity
Non-recourse secured debt, net	$	1,248,224	$	1,310,378
Accounts payable, accrued expenses and other liabilities	131,434		155,259
Due to affiliates	7,477		31,283
Distributions payable	9,477		9,447
Total liabilities (a)	1,396,612		1,506,367
Commitments and contingencies (Note 10)	0		0

Preferred stock, $0.001 par value; 50,000,000 shares authorized; none issued	—		—
Class A common stock, $0.001 par value; 320,000,000 shares authorized; 120,106,871 and 119,059,188 shares, respectively, issued and outstanding	120		119
Class C common stock, $0.001 par value; 80,000,000 shares authorized; 31,523,633 and 32,096,796 shares, respectively, issued and outstanding	32		32
Additional paid-in capital	1,335,413		1,331,278
Distributions and accumulated losses	(505,414)		(514,859)
Accumulated other comprehensive loss	(43,357)		(19,930)
Total stockholders’ equity	786,794		796,640
Noncontrolling interests	51,243		55,911
Total equity	838,037		852,551
Total liabilities and equity	$	2,234,649	$	2,358,918

September 30, 2017 December 31, 2016
Assets
Investments in real estate:
Real estate — Land, buildings and improvements $ 1,246,813
$ 990,810
Operating real estate — Land, buildings and improvements 617,490
606,558
Real estate under construction 102,413
182,612
Net investments in direct financing leases 39,285
49,596
In-place lease intangible assets 274,174
260,469
Other intangible assets 35,378
32,082
Investments in real estate 2,315,553
2,122,127
Accumulated depreciation and amortization (233,418 ) (168,974 )
Net investments in real estate 2,082,135
1,953,153
Notes receivable 66,500
66,500
Equity investment in real estate 21,159
14,694
Cash and cash equivalents 74,714
72,028
Other assets, net 79,570
79,545
Goodwill 26,447
23,526
Total assets $ 2,350,525
$ 2,209,446
Liabilities and Equity
Debt:
Non-recourse mortgages, net $ 1,115,677
$ 1,019,158
Bonds payable, net 149,765
138,253
Debt, net 1,265,442
1,157,411
Accounts payable, accrued expenses and other liabilities 97,282
69,006
Due to affiliate 29,263
53,711
Deferred income taxes 61,342
42,419
Distributions payable 21,569
20,995
Total liabilities 1,474,898
1,343,542
Commitments and contingencies (Note 10)

Preferred stock, $0.001 par value; 50,000,000 shares authorized; none issued —
—
Class A common stock, $0.001 par value; 320,000,000 shares authorized; 110,334,936 and 107,460,081 shares, respectively, issued and outstanding 110
107
Class C common stock, $0.001 par value; 80,000,000 shares authorized; 31,240,440 and 30,469,144 shares, respectively, issued and outstanding 31
30
Additional paid-in capital 1,250,980
1,222,139
Distributions and accumulated losses (408,629 ) (360,673 )
Accumulated other comprehensive loss (35,195 ) (61,704 )
Total stockholders’ equity 807,297
799,899
Noncontrolling interests 68,330
66,005
Total equity 875,627
865,904
Total liabilities and equity $ 2,350,525
$ 2,209,446
__________

(a)See Note 2 for details related to variable interest entities (“VIEs”).

See Notes to Condensed Consolidated Financial Statements.

~~CPA~~^®:CPA:18 – Global 9/30/~~2017~~2021 10-Q– 2

CORPORATE PROPERTY ASSOCIATES 18 – GLOBAL INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(in thousands, except share and per share amounts)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Revenues
Lease revenues — net-leased	$	31,993	$	25,805	$	89,765	$	74,333
Lease revenues — operating real estate	21,036		16,976		60,580		51,427
Other operating and interest income	413		401		1,076		4,230
	53,442		43,182		151,421		129,990
Operating Expenses
Depreciation and amortization	17,256		15,565		51,307		44,755
Operating real estate expenses	8,739		7,291		22,870		20,555
Property expenses, excluding reimbursable tenant costs	5,519		4,337		15,244		13,379
Reimbursable tenant costs	4,063		2,261		10,897		8,857
General and administrative	2,318		2,024		6,153		5,877
Allowance for credit losses	—		—		—		4,865
	37,895		31,478		106,471		98,288
Other Income and Expenses
Gain on sale of real estate, net	40,332		3,285		40,332		3,285
Interest expense	(12,558)		(10,815)		(35,898)		(31,658)
Other gains and (losses)	(2,764)		1,068		(2,828)		60
Losses from equity method investment in real estate	—		(173)		—		(386)
	25,010		(6,635)		1,606		(28,699)
Income before income taxes	40,557		5,069		46,556		3,003
(Provision for) benefit from income taxes	(110)		(420)		218		(1,584)
Net Income	40,447		4,649		46,774		1,419
Net income attributable to noncontrolling interests (inclusive of Available Cash Distributions to a related party of $1,623, $1,168, $4,949, and $5,113, respectively)	(5,036)		(1,346)		(8,886)		(7,487)
Net Income (Loss) Attributable to CPA:18 – Global	$	35,411	$	3,303	$	37,888	$	(6,068)
Class A Common Stock
Net income (loss) attributable to CPA:18 – Global	$	27,968	$	2,607	$	29,890	$	(4,719)
Basic and diluted weighted-average shares outstanding	120,364,095		118,715,886		119,949,052		118,389,942
Basic and diluted earnings (loss) per share	$	0.23	$	0.02	$	0.25	$	(0.04)
Class C Common Stock
Net income (loss) attributable to CPA:18 – Global	$	7,443	$	696	$	7,998	$	(1,349)
Basic and diluted weighted-average shares outstanding	32,027,757		32,442,454		32,103,111		32,460,383
Basic and diluted earnings (loss) per share	$	0.23	$	0.02	$	0.25	$	(0.04)

Three Months Ended September 30, Nine Months Ended September 30,
2017
2016 2017 2016
Revenues
Lease revenues:
Rental income $ 26,726
$ 23,620
$ 74,628
$ 69,887
Interest income from direct financing leases 909
1,131
2,789
3,452
Total lease revenues 27,635
24,751
77,417
73,339
Other real estate income 20,649
18,711
60,345
52,190
Other operating income 3,103
3,112
9,545
9,138
Other interest income 1,814
710
5,346
2,130
53,201

47,284
152,653
136,797
Operating Expenses
Depreciation and amortization 18,926
20,876
56,606
62,771
Other real estate expenses 8,593
8,634
25,074
23,261
Property expenses 7,728
6,946
26,147
19,676
General and administrative 1,856
1,601
5,337
5,151
Acquisition and other expenses —
36
46
4,747
37,103
38,093
113,210
115,606
Other Income and Expenses
Interest expense (12,430 ) (11,025 ) (35,673 ) (31,705 )
Other income and (expenses) 5,963
156
18,084
1,189
Equity in losses of equity method investment in real estate (341 ) (69 ) (694 ) (69 )
(6,808 ) (10,938 ) (18,283 ) (30,585 )
Income (loss) before income taxes and loss on sale of real estate 9,290
(1,747 ) 21,160
(9,394 )
Benefit from (provision for) income taxes 2,825
(103 ) 1,632
(303 )
Income (loss) before loss on sale of real estate 12,115
(1,850 ) 22,792
(9,697 )
Loss on sale of real estate, net of tax —
—
—
(63 )
Net Income (Loss) 12,115
(1,850 ) 22,792
(9,760 )
Net income attributable to noncontrolling interests (inclusive of Available Cash Distributions to a related party of $2,196, $1,662, $6,057, and $5,319, respectively) (2,294 ) (2,231 ) (6,568 ) (6,730 )
Net Income (Loss) Attributable to CPA^®:18 – Global
$ 9,821

$ (4,081 ) $ 16,224
$ (16,490 )
Class A Common Stock
Net income (loss) attributable to CPA^®:18 – Global
$ 7,759
$ (3,083 ) $ 12,936
$ (12,569 )
Basic and diluted weighted-average shares outstanding 110,507,579
106,279,055
109,507,006
105,148,891
Basic and diluted income (loss) per share $ 0.07
$ (0.03 ) $ 0.12
$ (0.12 )
Distributions Declared Per Share $ 0.1563
$ 0.1563
$ 0.4689
$ 0.4689

Class C Common Stock
Net income (loss) attributable to CPA^®:18 – Global
$ 2,062
$ (998 ) $ 3,288
$ (3,921 )
Basic and diluted weighted-average shares outstanding 31,322,341
30,205,326
31,041,072
29,964,756
Basic and diluted income (loss) per share $ 0.07
$ (0.03 ) $ 0.11
$ (0.13 )
Distributions Declared Per Share $ 0.1384
$ 0.1376
$ 0.4146
$ 0.4089

See Notes to Condensed Consolidated Financial Statements.

~~CPA~~^®:CPA:18 – Global 9/30/~~2017~~2021 10-Q– 3

CORPORATE PROPERTY ASSOCIATES 18 – GLOBAL INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ~~(LOSS)~~ (UNAUDITED)

(in thousands)


														Three Months Ended September 30,				Nine Months Ended September 30,
	Three Months Ended September 30,						Nine Months Ended September 30,							2021		2020		2021		2020
Net Income													Net Income	$	40,447	$	4,649	$	46,774	$	1,419
Other Comprehensive (Loss) Income													Other Comprehensive (Loss) Income
Foreign currency translation adjustments													Foreign currency translation adjustments	(13,636)		23,387		(27,224)		11,611
Unrealized gain (loss) on derivative instruments													Unrealized gain (loss) on derivative instruments	433		(401)		1,915		(3,168)
	2017			2016			2017			2016				(13,203)		22,986		(25,309)		8,443
Net Income (Loss)	$	12,115		$	(1,850	)	$	22,792		$	(9,760	)
Other Comprehensive Income
Foreign currency translation adjustments	13,839			2,963			37,534			8,739
Realized and unrealized loss on derivative instruments	(2,145		)	(928		)	(6,426		)	(4,678		)
	11,694			2,035			31,108			4,061
Comprehensive Income (Loss)	23,809			185			53,900			(5,699		)
Comprehensive Income													Comprehensive Income	27,244		27,635		21,465		9,862

Amounts Attributable to Noncontrolling Interests													Amounts Attributable to Noncontrolling Interests
Net income	(2,294		)	(2,231		)	(6,568		)	(6,730		)	Net income	(5,036)		(1,346)		(8,886)		(7,487)
Foreign currency translation adjustments	(1,806		)	(813		)	(4,599		)	(2,290		)	Foreign currency translation adjustments	958		(1,862)		1,889		(733)
Unrealized (gain) loss on derivative instruments													Unrealized (gain) loss on derivative instruments	(4)		15		(7)		18
Comprehensive income attributable to noncontrolling interests	(4,100		)	(3,044		)	(11,167		)	(9,020		)	Comprehensive income attributable to noncontrolling interests	(4,082)		(3,193)		(7,004)		(8,202)
Comprehensive Income (Loss) Attributable to CPA^®:18 – Global	$	19,709		$	(2,859	)	$	42,733		$	(14,719	)
Comprehensive Income Attributable to CPA:18 – Global													Comprehensive Income Attributable to CPA:18 – Global	$	23,162	$	24,442	$	14,461	$	1,660

See Notes to Condensed Consolidated Financial Statements.

~~CPA~~^®:CPA:18 – Global 9/30/~~2017~~2021 10-Q– 4

CORPORATE PROPERTY ASSOCIATES 18 – GLOBAL INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED)

~~Nine Months EndedSeptember 30, 2017~~ ~~and 2016~~

(in thousands, except share and per share amounts)


	CPA:18 – Global Stockholders
							Additional Paid-In Capital		Distributions and Accumulated Losses		Accumulated Other Comprehensive Loss		Total CPA:18 – Global Stockholders		Noncontrolling Interests
	Common Stock
	Class A			Class C
	Shares	Amount		Shares	Amount												Total
Balance at July 1, 2021	119,898,385	$	120	31,977,470	$	32	$	1,337,557	$	(531,345)	$	(31,108)	$	775,256	$	53,181	$	828,437
Shares issued	363,118	—		126,245	—		4,362						4,362				4,362
Shares issued to affiliate	354,821	—					3,161						3,161				3,161
Shares issued to directors	8,979	—					80						80				80
Distributions to noncontrolling interests													—		(6,020)		(6,020)
Distributions declared ($0.0625 per share to Class A and Class C)									(9,480)				(9,480)				(9,480)
Net income									35,411				35,411		5,036		40,447
Other comprehensive loss:
Foreign currency translation adjustments											(12,678)		(12,678)		(958)		(13,636)
Unrealized gain on derivative instruments											429		429		4		433
Repurchase of shares	(518,432)	—		(580,082)	—		(9,747)						(9,747)				(9,747)
Balance at September 30, 2021	120,106,871	$	120	31,523,633	$	32	$	1,335,413	$	(505,414)	$	(43,357)	$	786,794	$	51,243	$	838,037

Balance at July 1, 2020	118,259,860	$	118	32,369,603	$	32	$	1,331,025	$	(518,253)	$	(69,946)	$	742,976	$	59,540	$	802,516
Shares issued	404,276	—		97,327	—		4,159						4,159				4,159
Shares issued to affiliate	335,514	—					2,795						2,795				2,795
Shares issued to directors	9,650	—					80						80				80
Contributions from noncontrolling interests													—		103		103
Distributions to noncontrolling interests													—		(7,984)		(7,984)
Distributions declared ($0.0625 and $0.0450 per share to Class A and Class C, respectively)									(8,869)				(8,869)				(8,869)
Net income									3,303				3,303		1,346		4,649
Other comprehensive income:
Foreign currency translation adjustments											21,525		21,525		1,862		23,387
Unrealized loss on derivative instruments											(386)		(386)		(15)		(401)
Repurchase of shares	(376,494)	—		(148,226)	—		(4,336)						(4,336)				(4,336)
Balance at September 30, 2020	118,632,806	$	118	32,318,704	$	32	$	1,333,723	$	(523,819)	$	(48,807)	$	761,247	$	54,852	$	816,099

(Continued)

CPA:18 – Global 9/30/2021 10-Q– 5

CPA^®:18 – Global Stockholders

Additional Paid-In Capital
Distributions
and
Accumulated
Losses

Accumulated
Other Comprehensive Loss

Total CPA^®:18 – Global Stockholders
Noncontrolling Interests
Common Stock
Class A Class C
Shares Amount Shares Amount Total
Balance at January 1, 2017 107,460,081
$ 107
30,469,144
$ 30
$ 1,222,139
$ (360,673 ) $ (61,704 ) $ 799,899
$ 66,005
$ 865,904
Shares issued 3,198,924
3
1,034,160
1
33,431
33,435

33,435
Shares issued to affiliate 1,037,527
1
8,275
8,276

8,276
Shares issued to directors 12,658
—
100
100
100
Contributions from noncontrolling interests —
3,143
3,143
Distributions to noncontrolling interests —
(11,985 ) (11,985 )
Distributions declared ($0.4689 and $0.4146 per share to Class A and Class C, respectively) (64,180 ) (64,180 ) (64,180 )
Net income 16,224
16,224
6,568
22,792
Other comprehensive income:

Foreign currency translation adjustments 32,935
32,935
4,599
37,534
Realized and unrealized loss on derivative instruments (6,426 ) (6,426 ) (6,426 )
Repurchase of shares (1,374,254 ) (1 ) (262,864 ) —
(12,965 ) (12,966 ) (12,966 )
Balance at September 30, 2017 110,334,936
$ 110
31,240,440
$ 31
$ 1,250,980
$ (408,629 ) $ (35,195 ) $ 807,297
$ 68,330
$ 875,627

Balance at January 1, 2016 103,214,083
$ 103
29,536,899
$ 30
$ 1,178,990
$ (247,995 ) $ (50,316 ) $ 880,812
$ 71,896
$ 952,708
Shares issued 2,900,565
3
939,990
—
32,450
32,453
32,453
Shares issued to affiliate 913,907
1
7,390
7,391
7,391
Shares issued to directors 12,658
—
100
100
100
Contributions from noncontrolling interests —
41
41
Distributions to noncontrolling interests —
(11,588 ) (11,588 )
Distributions declared ($0.4689 and $0.4089 per share to Class A and Class C, respectively) (61,599 ) (61,599 ) (61,599 )
Net loss (16,490 ) (16,490 ) 6,730
(9,760 )
Other comprehensive loss:

Foreign currency translation adjustments 6,449
6,449
2,290
8,739
Realized and unrealized loss on derivative instruments (4,678 ) (4,678 ) (4,678 )
Repurchase of shares (705,234 ) (1 ) (286,874 ) —
(7,895 ) (7,896 ) (7,896 )
Balance at September 30, 2016 106,335,979
$ 106
30,190,015
$ 30
$ 1,211,035
$ (326,084 ) $ (48,545 ) $ 836,542
$ 69,369
$ 905,911
CORPORATE PROPERTY ASSOCIATES 18 – GLOBAL INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED)

(Continued)

(in thousands, except share and per share amounts)


	CPA:18 – Global Stockholders
							Additional Paid-In Capital		Distributions and Accumulated Losses		Accumulated Other Comprehensive Loss		Total CPA:18 – Global Stockholders		Noncontrolling Interests
	Common Stock
	Class A			Class C
	Shares	Amount		Shares	Amount												Total
Balance at January 1, 2021	119,059,188	$	119	32,096,796	$	32	$	1,331,278	$	(514,859)	$	(19,930)	$	796,640	$	55,911	$	852,551
Shares issued	1,114,166	1		385,781	—		13,181						13,182				13,182
Shares issued to affiliate	1,078,055	1					9,474						9,475				9,475
Shares issued to directors	8979	—					80						80				80
Contributions from noncontrolling interests													—		3,838		3,838
Distributions to noncontrolling interests													—		(15,510)		(15,510)
Distributions declared ($0.1875 per share to Class A and Class C)									(28,443)				(28,443)				(28,443)
Net income									37,888				37,888		8,886		46,774
Other comprehensive loss:
Foreign currency translation adjustments											(25,335)		(25,335)		(1,889)		(27,224)
Unrealized gain on derivative instruments											1,908		1,908		7		1,915
Repurchase of shares	(1,153,517)	(1)		(958,944)	—		(18,600)						(18,601)				(18,601)
Balance at September 30, 2021	120,106,871	$	120	31,523,633	$	32	$	1,335,413	$	(505,414)	$	(43,357)	$	786,794	$	51,243	$	838,037

Balance at January 1, 2020	117,179,578	$	117	32,238,513	$	32	$	1,319,584	$	(470,326)	$	(56,535)	$	792,872	$	58,799	$	851,671
Cumulative-effect adjustment for the adoption of ASU 2016-13, Financial Instruments — Credit Losses									(6,903)				(6,903)				(6,903)
Shares issued	2,308,185	2		677,715	1		26,029						26,032				26,032
Shares issued to affiliate	793,211	1					6,778						6,779				6,779
Shares issued to directors	9,650	—					80						80				80
Contributions from noncontrolling interests													—		699		699
Distributions to noncontrolling interests													—		(12,848)		(12,848)
Distributions declared ($0.2813 and $0.2270 per share to Class A and Class C, respectively)									(40,522)				(40,522)				(40,522)
Net (loss) income									(6,068)				(6,068)		7,487		1,419
Other comprehensive income:
Foreign currency translation adjustments											10,878		10,878		733		11,611
Unrealized loss on derivative instruments											(3,150)		(3,150)		(18)		(3,168)
Repurchase of shares	(1,657,818)	(2)		(597,524)	(1)		(18,748)						(18,751)				(18,751)
Balance at September 30, 2020	118,632,806	$	118	32,318,704	$	32	$	1,333,723	$	(523,819)	$	(48,807)	$	761,247	$	54,852	$	816,099

See Notes to Condensed Consolidated Financial Statements.

~~CPA~~^®:CPA:18 – Global 9/30/~~2017~~2021 10-Q– 56

CORPORATE PROPERTY ASSOCIATES 18 – GLOBAL INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(in thousands)


	Nine Months Ended September 30,
	2021		2020
Cash Flows — Operating Activities








Net Cash Provided by Operating Activities	$	64,789	$	64,637
Cash Flows — Investing Activities
Proceeds from sale of real estate	147,278		6,101
Funding for development projects	(100,234)		(124,091)
Value added taxes refunded in connection with construction funding	9,300		3,064
Capital expenditures on real estate	(5,143)		(5,834)
Value added taxes paid in connection with construction funding	(2,511)		(7,288)
Payment of deferred acquisition fees to an affiliate	(1,854)		(2,619)
Other investing activities, net	796		(1,022)


Net Cash Provided by (Used in) Investing Activities	47,632		(131,689)
Cash Flows — Financing Activities
Scheduled payments and prepayments of mortgage principal	(144,669)		(15,197)
Proceeds from mortgage financing	107,778		53,464
Repayment of notes payable to affiliate	(62,048)		—
Proceeds from notes payable to affiliate	41,000		—
Distributions paid	(28,413)		(54,398)
Repurchase of shares	(18,601)		(18,751)
Distributions to noncontrolling interests	(15,945)		(12,848)
Proceeds from issuance of shares	13,182		24,525
Contributions from noncontrolling interests	3,838		699
Payment of financing costs	(3,045)		(1,938)
Other financing activities, net	(50)		(60)
Net Cash Used in Financing Activities	(106,973)		(24,504)
Change in Cash and Cash Equivalents and Restricted Cash During the Period
Effect of exchange rate changes on cash and cash equivalents and restricted cash	(1,908)		(290)
Net increase (decrease) in cash and cash equivalents and restricted cash	3,540		(91,846)
Cash and cash equivalents and restricted cash, beginning of period	119,713		163,398
Cash and cash equivalents and restricted cash, end of period	$	123,253	$	71,552

Nine Months Ended September 30,
2017 2016
Cash Flows — Operating Activities

Net Cash Provided by Operating Activities $ 67,777
$ 56,005
Cash Flows — Investing Activities
Funding and advances for build-to-suit projects (40,770 ) (81,119 )
Acquisitions of real estate and direct financing leases (27,924 ) (55,307 )
Value added taxes refunded in connection with acquisitions of real estate 12,414
4,224
Capital contributions to equity investment (5,616 ) (3,850 )
Capital expenditures on real estate (4,640 ) (5,363 )
Value added taxes paid in connection with acquisition of real estate (3,667 ) (7,994 )
Payment of deferred acquisition fees to an affiliate (3,650 ) (4,476 )
Deposits for investments (716 ) 4,000
Return of capital from equity investments 246
2,243
Change in investing restricted cash 29
340
Other investing activities, net (26 ) 47
Proceeds from sale of real estate —
40
Net Cash Used in Investing Activities (74,320 ) (147,215 )
Cash Flows — Financing Activities
Proceeds from mortgage financing 72,415
106,601
Distributions paid (63,606 ) (60,900 )
Proceeds from issuance of shares 31,778
30,588
Repayment of notes payable to affiliate (19,696 ) —
Distributions to noncontrolling interests (11,985 ) (11,588 )
Proceeds from notes payable to affiliate 11,196
—
Scheduled payments and prepayments of mortgage principal (9,105 ) (3,641 )
Repurchase of shares (7,349 ) (7,896 )
Contributions from noncontrolling interests 2,339
41
Payment of deferred financing costs and mortgage deposits (588 ) (796 )
Other financing activities, net (13 ) —
Change in financing restricted cash (8 ) 5,171
Net Cash Provided by Financing Activities 5,378
57,580
Change in Cash and Cash Equivalents During the Period
Effect of exchange rate changes on cash and cash equivalents 3,851
952
Net increase (decrease) in cash and cash equivalents 2,686
(32,678 )
Cash and cash equivalents, beginning of period 72,028
117,453
Cash and cash equivalents, end of period $ 74,714
$ 84,775

See Notes to Condensed Consolidated Financial Statements.

~~CPA~~^®:CPA:18 – Global 9/30/~~2017~~2021 10-Q– 67

CORPORATE PROPERTY ASSOCIATES 18 – GLOBAL INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 1. Organization

Organization

Corporate Property Associates 18 – Global Incorporated ~~or CPA~~^®:(“CPA:18 – ~~Global, together with its consolidated subsidiaries,~~Global”), is a publicly owned, non-traded ~~real estate investment trust, or~~ REIT, that invests primarily in a diversified portfolio of income-producing commercial real estate properties net leased to companies, ~~and other real estate related assets,~~ both domestically and internationally. In addition, our portfolio includes self-storage and student housing investments. We were formed in 2012 and are managed by W. P. Carey Inc.~~, or WPC,~~ (“WPC”) through one of its subsidiaries ~~or collectively,~~(collectively our ~~Advisor.~~“Advisor”). As a REIT, we are not subject to U.S. federal income ~~taxation~~taxes on income and gains that we distribute to our stockholders as long as we satisfy certain requirements, principally relating to the nature of our income and the level of our distributions, among other factors. We earn revenue primarily by leasing the properties we own to single corporate tenants, predominantly on a triple-net lease basis, which requires the tenant to pay substantially all of the costs associated with operating and maintaining the property. We derive self-storage revenue from rents received from customers who rent storage space primarily under month-to-month leases for personal or business use. We earn student housing operating revenue primarily from leases of one year or less with individual students. Revenue is subject to fluctuation due to 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.

Substantially all of our assets and liabilities are held by ~~CPA~~^®:CPA:18 Limited Partnership ~~or the Operating Partnership,~~(the “Operating Partnership”), and atas of September 30, ~~2017~~2021 we owned 99.97% of general and limited partnership interests in the Operating Partnership. The remaining interest in the Operating Partnership is held by a subsidiary of WPC.

AtAs of September 30, ~~2017,~~2021, our net lease portfolio was comprised of full or partial ownership interests in 5954 properties, ~~the majority~~substantially all of which were ~~fully-occupied~~fully occupied and triple-net leased to 9966 tenants totaling ~~10.1~~10.5 million square feet. The remainder of our portfolio was comprised of our full or partial ownership interests in 6965 self-storage properties, 3 student housing development projects (2 of which will become subject to net lease agreements upon their completion) and ~~nine multi-family properties~~1 student housing operating property, totaling ~~6.8~~approximately 5.1 million square feet.

We operate in ~~three~~3 reportable business segments: Net Lease, Self Storage, and ~~Multi-Family.~~Other Operating Properties. Our Net Lease segment includes our investments in net-leased properties, whether they are accounted for as operating leases or direct financing leases. Our Self Storage segment is comprised of our investments in self-storage properties. Our ~~Multi-Family~~Other Operating Properties segment is comprised of our investments in ~~multi-family residential properties and student-housing developments.~~student housing properties. In addition, we have an All Other category that ~~includes~~is comprised of our notes receivable ~~investments (Note 12~~).investment. Our reportable business segments and All Other category are the same as our reporting ~~units.~~units (Note 13).

We raised aggregate gross proceeds in our initial public offering of approximately $1.2 billion through April 2, 2015, which is the date we closed our offering. We have fully invested the proceeds from our ~~initial public~~ offering. In addition, from inception through September 30, ~~2017, $108.4~~2021, $217.2 million and ~~$29.2~~$62.6 million of distributions to our shareholders were reinvested in our ClassA and Class C common stock, respectively, through our Distribution Reinvestment Plan (“DRIP”).

On August 31, 2021, we reported that our independent directors intended to begin the process of evaluating possible liquidity alternatives for our stockholders, which included an unsolicited preliminary proposal for a potential business combination transaction received from affiliates of our Advisor. The independent directors have formed a special committee and retained advisors. There can be no assurance as to the form or ~~DRIP.~~timing of any liquidity alternative or that any alternative may be pursued at all for the foreseeable future. We do not intend to discuss the evaluation process unless and until a particular alternative is selected.

CPA:18 – Global 9/30/2021 10-Q– 8

Notes to Condensed Consolidated Financial Statements (Unaudited)

Note 2. Basis of Presentation

Basis of Presentation

Our interim condensed consolidated financial statements have been prepared 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 condensed consolidated financial position, results of operations, and cash flows in accordance with generally accepted accounting principles in the United States or(“GAAP”). The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by 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~~presentation of financial position, results of operations, and cash flows. Our interim condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and accompanying notes for the year ended December 31, ~~2016,~~2020, which are included in the ~~2016~~2020 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 year.

~~CPA~~^®~~:18 – Global 9/30/2017 10-Q~~– 7

~~Notes to Consolidated Financial Statements (Unaudited)~~

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 condensed consolidated financial statements and the accompanying notes. Actual results could differ from those estimates.

Basis of Consolidation

Our condensed consolidated financial statements reflect all of our accounts, including those of our controlled subsidiaries. The portions of equity in consolidated subsidiaries that are not attributable, directly or indirectly, to us are presented as noncontrolling interests. All significant intercompany accounts and transactions have been eliminated.

When we obtain an economic interest in an entity, we evaluate the entity to determine if it should be deemed a ~~variable interest entity, or~~ VIE and, if so, whether we are the primary beneficiary and are therefore required to consolidate the entity. ~~We apply accounting guidance for consolidation of VIEs to certain entities~~There have been no significant changes in which the equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial supportour VIE policies from other parties. Fixed price purchase and renewal options within a lease, as well as certain decision-making rights within a loan or joint-venture agreement, can cause us to consider an entity a VIE. Limited partnerships and other similar entities that operate as a partnership will be considered a VIE unless the limited partners hold substantive kick-out rights or participation rights. Significant judgment is required to determine whether a VIE should be consolidated. We review the contractual arrangements provided forwhat was disclosed in the partnership agreement or other related contracts to determine whether the entity is considered a VIE and to establish whether we have any variable interests in the VIE. We then compare our variable interests, if any, to those2020 Annual Report.

As of the other variable interest holders to determine which party is the primary beneficiary of the VIE based on whether the entity (i) has the power to direct the activities that most significantly impact the economic performance of the VIE and (ii) has the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. The liabilities of these VIEs are non-recourse to us and can only be satisfied from each VIE’s respective assets.

At September 30, ~~2017,~~2021 and December 31, 2020, we considered 1310 and 15 entities to be VIEs, 12respectively, all of which we consolidated as we are considered the primary beneficiary. We previously determined that a build-to-suit project in Eindhoven, the Netherlands was a VIE. In May 2017, we made our final payment to the developer for this project and now own 100% of the voting rights (~~Note 4). As such, we no longer determine it to be a VIE.~~ The following table presents a summary of selected financial data of the consolidated VIEs included in the condensed consolidated balance sheets (in thousands):


	September 30, 2021		December 31, 2020
Real estate — Land, buildings and improvements	$	351,602	$	427,129
Operating real estate — Land, buildings and improvements	78,933		78,927
Real estate under construction	91,645		179,162

In-place lease intangible assets	102,795		106,703

Accumulated depreciation and amortization	(105,019)		(98,433)


Total assets	549,684		729,611

Non-recourse secured debt, net	$	323,971	$	331,113

Total liabilities	360,350		390,882

September 30, 2017 December 31, 2016
Real estate — Land, buildings and improvements $ 456,786
$ 371,385
Operating real estate — Land, buildings and improvements 51,165
43,948
Real estate under construction 102,413
162,371
Net investments in direct financing leases —
10,516
In-place lease intangible assets 89,510
81,798
Other intangible assets 25,062
22,376
Accumulated depreciation and amortization (53,360 ) (37,412 )
Cash and cash equivalents 11,150
15,260
Other assets, net 31,044
41,975
Total assets 713,770
712,217

Non-recourse mortgages, net $ 226,426
$ 235,425
Bonds payable, net 62,330
57,615
Deferred income taxes 28,033
20,437
Accounts payable, accrued expenses and other liabilities 27,033
30,946
Total liabilities 343,822
344,423

~~CPA~~^®:CPA:18 – Global 9/30/~~2017~~2021 10-Q– 89

Notes to Condensed Consolidated Financial Statements (Unaudited)

Foreign Currencies

~~At both September 30, 2017 and December 31, 2016, we hadone unconsolidated VIE, which we account for under the equity method of accounting.~~

We ~~do not consolidate this entity because we~~ are ~~not the primary beneficiary~~subject to fluctuations in exchange rates between foreign currencies and the ~~nature of our involvement in~~U.S. dollar (primarily the ~~activities~~euro, the Norwegian krone, and, to a lesser extent, the British pound sterling). The following table reflects the end-of-period rate of the ~~entity allows us~~U.S. dollar in relation to ~~exercise significant influence on, but does not give us power over, decisions that significantly affect~~foreign currencies:


	September 30, 2021		December 31, 2020		Percent Change
British Pound Sterling	$	1.3456	$	1.3649	(1.4)	%
Euro	1.1579		1.2271		(5.6)	%
Norwegian Krone	0.1139		0.1172		(2.8)	%

Revenue Recognition

Lease revenue (including straight-line lease revenue) is only recognized when deemed probable of collection. Collectibility is assessed for each tenant receivable using various criteria including credit ratings, guarantees, past collection issues, and the current economic ~~performance~~and business environment affecting the tenant. If collectibility of the ~~entity. As~~contractual rent stream is not deemed probable, revenue will only be recognized upon receipt of ~~September 30, 2017 and December 31, 2016,~~cash from the ~~net carrying amount~~tenant. Due to the adverse impact of ~~this equity investment was $21.2~~the COVID-19 pandemic, we did not recognize uncollected rent within lease revenues of $1.6 million and ~~$14.7~~$8.3 million ~~respectively, and our maximum exposure to loss in this entity is limited to our investment.~~

At times, the carrying value of our equity investment may fall below zero for certain investments. We intend to fund our share of the jointly owned investment’s 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 the operating deficits. At September 30, 2017, our sole equity investment did not have a carrying value below zero.

~~Out-of-Period Adjustments~~

During the third quarter of 2017, we identified and recorded out-of-period adjustments related to the accounting for deferred foreign income taxes. We concluded that these adjustments were not material to our consolidated financial statements for any of the current or prior periods presented. The net adjustment is reflected as a $1.2 million and $0.8 million ~~increase of our Benefit from income taxes in the consolidated statements of income for~~during the three and nine months ended September 30, ~~2017,~~2021, respectively, and $3.6 million and $6.6 million during the three and nine months ended September 30, 2020, respectively. During the nine months ended September 30, 2020, we wrote off $7.0 million in straight-line rent receivables based on our assessment of less than a 75% likelihood of collecting all remaining contractual rent on certain net lease hotels.

~~Reclassifications~~Our straight-line rent receivables totaled $21.1 million and $19.0 million at September 30, 2021 and December 31, 2020, respectively.

~~Certain prior period amounts have been reclassified to conform~~Restricted Cash

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the condensed consolidated balance sheets to the ~~current period presentation.~~condensed consolidated statements of cash flows (in thousands):


	September 30, 2021		December 31, 2020
Cash and cash equivalents	$	93,477	$	62,346
Restricted cash (a)	29,776		57,367
Total cash and cash equivalents and restricted cash	$	123,253	$	119,713

~~In the second quarter of 2017, we reclassified in-place lease intangible~~__________

(a)Restricted cash is included within Other assets, net ~~and other intangible assets, net to be included within Net investments in real estate in~~on our condensed consolidated balance sheets. The ~~accumulated amortization on these assets is now~~amount as of December 31, 2020 included $30.4 million of net proceeds held in escrow relating to the disposition of our equity method investment in real estate (Note 4). These funds were released from escrow in February 2021.

Deferred Income Taxes

Our deferred tax liabilities were $44.8 million and $50.2 million at September 30, 2021 and December 31, 2020, respectively, and are included in ~~Accumulated depreciation~~Accounts payable, accrued expenses and ~~amortization~~other liabilities in ~~our~~the condensed consolidated ~~balance sheets. Prior period balances have been reclassified~~financial statements. Our deferred tax assets, net of valuation allowances, were $2.2 million and $2.4 million at September 30, 2021 and December 31, 2020, respectively, and are included in Other assets, net in the condensed consolidated financial statements.

CPA:18 – Global 9/30/2021 10-Q– 10

Notes to ~~conform to the current period presentation.~~Condensed Consolidated Financial Statements (Unaudited)

~~Recent~~Recently Adopted Accounting Pronouncements

In ~~May 2014,~~March 2020, the Financial Accounting Standards Board ~~or FASB,~~(“FASB”) issued Accounting Standards Update ~~or ASU,~~ ~~2014-09, Revenue from Contracts with Customers~~(“ASU”) 2020-04, Reference Rate Reform (Topic ~~606)~~848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU ~~2014-09~~2020-04 contains practical expedients for reference rate reform-related activities that impact debt, leases, derivatives, and other contracts. The guidance in ASU 2020-04 is ~~a comprehensive new revenue recognition model requiring a company to recognize revenue to depict~~optional and may be elected over time as reference rate reform activities occur. On January 7, 2021, the ~~transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive~~FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, which clarifies that certain optional expedients and exceptions in ~~exchange~~Topic 848 for ~~those goods or services. ASU 2014-09 does not~~contract modifications and hedge accounting apply to our lease revenues, which constitute a majority of our revenues, but will primarily apply to revenues generated from our operating properties. We will adopt this guidance for our interim and annual periods beginning January 1, 2018 using one of two methods: retrospective restatement for each reporting period presented atderivatives that are affected by the ~~time of adoption, or retrospectively with the cumulative effect of initially applying this guidance recognized at the date of initial application.~~transition. We have ~~not decided which method of adoption~~evaluated our contracts that are referenced to London Interbank Offered Rate (“LIBOR”) or other reference rates expected to be discontinued and we ~~will use.~~expect to account for any necessary modifications with a replacement reference rate using the expedients and exceptions provided for in ASU 2020-04 and ASU 2021-01. We are evaluating the impact ~~of the new standard and~~these standards may have ~~not yet determined if it will have a material impact~~ on our ~~business or our consolidated~~ financial statements.

~~In February 2016, the FASB issued~~ ~~ASU 2016-02, Leases (Topic 842).~~ ASU 2016-02 outlines a new model for accounting by lessees, whereby their rights and obligations under substantially all leases, existing and new, would be capitalized and recorded on the balance sheet. For lessors, however, the accounting remains largely unchanged from the current model, with the distinction between operating and financing leases retained, but updated to align with certain changes to the lessee model and the new revenue recognition standard. The new standard also replaces existing sale-leaseback guidance with a new model applicable to both lessees and lessors. In addition, it also requires lessors to record gross revenues and expenses associated with activities that do not transfer services to lessee (such as real estate taxes and insurance). Additionally, the new standard requires extensive quantitative and qualitative disclosures. The new standard must be adopted using a modified retrospective transition of the new guidance and provides for certain practical expedients. Transition will require application of the new model at the beginning of the earliest comparative period presented. We will adopt this guidance for our interim and annual periods beginning January 1, 2019. The ASU is expected to impact our consolidated financial statements as we have land lease arrangements for which we are the lessee. We are evaluating the impact of the new standard and have not yet determined if it will have a material impact on our business or our consolidated financial statements.

~~CPA~~^®~~:18 – Global 9/30/2017 10-Q~~– 9

~~Notes to Consolidated Financial Statements (Unaudited)~~

~~In June 2016, the FASB issued~~ ~~ASU 2016-13, Financial Instruments — Credit Losses.~~ ASU 2016-13 introduces a new model for estimating credit losses based on current expected credit losses for certain types of financial instruments, including loans receivable, held-to-maturity debt securities, and net investments in direct financing leases, amongst other financial instruments. ASU 2016-13 also modifies the impairment model for available-for-sale debt securities and expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the allowance for losses. ASU 2016-13 will be effective for public business entities in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early application of the guidance permitted. We are in the process of evaluating the impact of adopting ASU 2016-13 on our consolidated financial statements.

~~In August 2016, the FASB issued~~ ~~ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.~~ ASU 2016-15 intends to reduce diversity in practice for certain cash flow classifications, including, but not limited to (i) debt prepayment or debt extinguishment costs, (ii) contingent consideration payments made after a business combination, (iii) proceeds from the settlement of insurance claims, and (iv) distributions received from equity method investees. ASU 2016-15 will be effective for public business entities in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early application of the guidance permitted. We are in the process of evaluating the impact of adopting ASU 2016-15 on our consolidated financial statements and will retrospectively adopt the standard for the fiscal year beginning January 1, 2018.

~~In October 2016, the FASB issued~~ ~~ASU 2016-17, Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control~~. ASU 2016-17 changes how a reporting entity that is a decision maker should consider indirect interests in a VIE held through an entity under common control. If a decision maker must evaluate whether it is the primary beneficiary of a VIE, it will only need to consider its proportionate indirect interest in the VIE held through a common control party. ASU 2016-17 amends ASU 2015-02, which we adopted on January 1, 2016, and which currently directs the decision maker to treat the common control party’s interest in the VIE as if the decision maker held the interest itself. ASU 2016-17 is effective for public business entities in fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. We adopted ASU 2016-17 as of January 1, 2017 on a prospective basis. The adoption of this standard did not have a material impact on our consolidated financial statements.

~~In November 2016, the FASB issued~~ ~~ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash~~. ASU 2016-18 intends to reduce diversity in practice for the classification and presentation of changes in restricted cash on the statement of cash flows. ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 will be effective for public business entities in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. We are in the process of evaluating the impact of adopting ASU 2016-18 on our consolidated financial statements and will retrospectively adopt the standard for the fiscal year beginning January 1, 2018.

~~In January 2017, the FASB issued~~ ~~ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business~~. ASU 2017-01 intends to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Under the current implementation guidance in Topic 805, there are three elements of a business: inputs, processes, and outputs. While an integrated set of assets and activities, collectively referred to as a “set,” that is a business usually has outputs, outputs are not required to be present. ASU 2017-01 provides a screen to determine when a set is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. ASU 2017-01 will be effective for public business entities in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. We elected to early adopt ASU 2017-01 on January 1, 2017 on a prospective basis. While our acquisitions have historically been classified as either business combinations or asset acquisitions, certain acquisitions that were classified as business combinations by us likely would have been considered asset acquisitions under the new standard. As a result, transaction costs are more likely to be capitalized since we expect most of our future acquisitions to be classified as asset acquisitions under this new standard. In addition, goodwill that was previously allocated to businesses that were sold or held for sale will no longer be allocated and written off upon sale if future sales were deemed to be sales of assets and not businesses.

~~CPA~~^®~~:18 – Global 9/30/2017 10-Q~~– 10

~~Notes to Consolidated Financial Statements (Unaudited)~~

~~In January 2017, the FASB issued~~ ~~ASU 2017-04, Intangibles — Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment~~. ASU 2017-04 removes step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance will remain largely unchanged. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. ASU 2017-04 will be effective for public business entities in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years in which a goodwill impairment test is performed, with early adoption permitted. We adopted ASU 2017-04 as of April 1, 2017 on a prospective basis. The adoption of this standard did not have a material impact on our consolidated financial statements.

~~In February 2017, the FASB issued~~ ~~ASU 2017-05, Other Income — Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20)~~. ASU 2017-05 clarifies that a financial asset is within the scope of Subtopic 610-20 if it meets the definition of an in substance nonfinancial asset. The amendments define the term “in substance nonfinancial asset,” in part, as a financial asset promised to a counterparty in a contract if substantially all of the fair value of the assets (recognized and unrecognized) that are promised to the counterparty in the contract is concentrated in nonfinancial assets. If substantially all of the fair value of the assets that are promised to the counterparty in a contract is concentrated in nonfinancial assets, then all of the financial assets promised to the counterparty are in substance nonfinancial assets within the scope of Subtopic 610-20. This amendment also clarifies that nonfinancial assets within the scope of Subtopic 610-20 may include nonfinancial assets transferred within a legal entity to a counterparty. For example, a parent company may transfer control of nonfinancial assets by transferring ownership interests in a consolidated subsidiary. ASU 2017-05 is effective for periods beginning after December 15, 2017, with early application permitted for fiscal years beginning after December 15, 2016. We are in the process of evaluating the impact of ASU 2017-05 on our consolidated financial statements and will adopt the standard for the fiscal year beginning January 1, 2018.

~~In August 2017, the FASB issued~~ ~~ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities~~. ASU 2017-12 will make more financial and nonfinancial hedging strategies eligible for hedge accounting. It also amends the presentation and disclosure requirements and changes how companies assess hedge effectiveness. It is intended to more closely align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. ASU 2017-12 will be effective in fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. We are in the process of evaluating the impact of adopting ASU 2017-12 on our consolidated financial statements.

Note 3. Agreements and Transactions with Related Parties

Transactions with Our Advisor

We have an advisory agreement with our Advisor whereby our Advisor performs certain services for us under a fee arrangement, ~~including~~as discussed in detail in the ~~identification, evaluation, negotiation, purchase,~~2020 Annual Report.

We have an unsecured revolving line of credit with WPC with a borrowing capacity of $50.0 million and ~~disposition~~a scheduled maturity date of ~~real estate~~March 31, 2022. The line of credit bears an interest rate equal to LIBOR plus 1.05%, which is the rate at which WPC can borrow funds under its senior credit facility (including an annual facility fee of 0.20%). During the nine months ended September 30, 2021, we repaid in full the $21.1 million outstanding balance on the line of credit (including accrued interest), which was the amount outstanding at December 31, 2020. As of September 30, 2021, we have no amounts drawn on the line of credit.

Jointly Owned Investments

As of both September 30, 2021 and ~~related assets and mortgage loans; day-to-day management; and~~December 31, 2020, we owned interests ranging from 50% to 99% in 16 jointly owned investments, with the ~~performance~~remaining interests held by WPC (4 investments) or by third parties. Since no other parties hold any rights that supersede our control, we consolidate all of ~~certain administrative duties. We also reimburse~~these joint ventures.

Other Transactions with our Advisor for general and administrative duties performed on our behalf. The advisory agreement has a term of one year and may be renewed for successive one-year periods. We may terminate the advisory agreement upon 60 days’ written notice without cause or penalty.Affiliates

~~CPA~~^®~~:18 – Global 9/30/2017 10-Q~~– 11

~~Notes to Consolidated Financial Statements (Unaudited)~~

The following tables present a summary of fees we paid, expenses we reimbursed, and distributions we made to our Advisor and other affiliates in accordance with the terms of the relevant agreements, as discussed in the 2020 Annual Report (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Amounts Included in the Condensed Consolidated Statements of Operations
Asset management fees	$	3,160	$	2,978	$	9,452	$	8,858
Available Cash Distributions	1,623		1,168		4,949		5,113
Personnel and overhead reimbursements	743		696		1,975		2,027
Interest expense on deferred acquisition fees and external joint-venture loans	161		116		441		371
	$	5,687	$	4,958	$	16,817	$	16,369
Acquisition Fees Capitalized
Capitalized personnel and overhead reimbursements	$	48	$	26	$	88	$	96
Current acquisition fees	—		—		—		110
Deferred acquisition fees	—		—		—		88
.	$	48	$	26	$	88	$	294

CPA:18 – Global 9/30/2021 10-Q– 11

Three Months Ended September 30, Nine Months Ended September 30,
2017 2016 2017 2016
Amounts Included in the Consolidated Statements of Operations
Asset management fees $ 2,902
$ 2,547
$ 8,378
$ 7,424
Available Cash Distributions 2,196
1,662
6,057
5,319
Personnel and overhead reimbursements 768
601
2,337
2,210
Interest expense on deferred acquisition fees, interfund loan, and accretion of interest on annual distribution and shareholder servicing fee 163
203
783
631
Director compensation 152
152
258
259
Acquisition expenses —
—
—
3,484
$ 6,181
$ 5,165
$ 17,813
$ 19,327

Acquisition Fees Capitalized
Current acquisition fees $ 250
$ 1,166
$ 1,643
$ 2,987
Deferred acquisition fees 200
933
1,314
2,390
Personnel and overhead reimbursements 196
35
380
283
$ 646
$ 2,134
$ 3,337
$ 5,660

Notes to Condensed Consolidated Financial Statements (Unaudited)

The following table presents a summary of amounts included in Due to ~~affiliate~~affiliates in the condensed consolidated financial statements (in thousands):


	September 30, 2021		December 31, 2020
Due to Affiliates
External joint-venture loans, accounts payable, and other (a)	$	6,410	$	6,940
Asset management fees payable	1,057		1,328
Acquisition fees, including accrued interest	10		1,871
Loan from WPC, including accrued interest	—		21,144

	$	7,477	$	31,283

September 30, 2017 December 31, 2016
Due to Affiliate
Loan from WPC, including accrued interest $ 19,508
$ 27,580
Deferred acquisition fees, including accrued interest 5,944
15,305
Accounts payable and other 2,596
2,454
Asset management fees payable 967
866
Current acquisition fees 248
84
Shareholder servicing fee liability —
7,422
$ 29,263
$ 53,711
___________

~~Loans from WPC~~

~~In July 2016, our board of directors and the board of directors of WPC approved unsecured~~(a)Includes loans from ~~WPC to us, at the sole discretion of WPC’s management, of up to $50.0 million in the aggregate, at a rate equal~~our joint-venture partners to the ~~rate at which WPC can borrow funds under its senior credit facility, for acquisition funding purposes.~~

~~On October 31, 2016,~~jointly owned investments that we ~~borrowed $27.5 million from WPC to partially finance a new investment,~~consolidate. As of September 30, 2021 and ~~that amount remained outstanding at~~ December 31, 2016. The annual interest rate equaled London Interbank Offered Rate, or LIBOR, as of the loan date plus 1.1% through February 22, 2017. After that date, the annual interest rate equaled LIBOR plus 1.0%, reflecting the lower rate available under WPC’s amended and restated senior credit facility. The scheduled maturity date of the loan was October 31, 2017.

~~On May 15, 2017, we borrowed an additional $11.2 million from WPC~~2020, amounts outstanding to ~~partially finance the final payment to the developer for a build-to-suit project in Eindhoven, the Netherlands (Note 4). The scheduled maturity date of the loan is May 15, 2018.~~

~~CPA~~^®~~:18 – Global 9/30/2017 10-Q~~– 12

~~Notes to Consolidated Financial Statements (Unaudited)~~

~~During the nine months ended September 30, 2017, we repaid $19.7 million to WPC, and as a result, a total of $19.5 million remained outstanding,~~our joint-venture partners, including accrued interest, ~~to WPC at September 30, 2017. Subsequent to September 30, 2017, we repaid the remaining $19.5~~were $5.5 million ~~of loans outstanding to WPC, including accrued interest (Note 13~~).and $5.3 million, respectively.

Asset Management Fees

~~Pursuant to the advisory agreement,~~For any portion of asset management fees our Advisor is entitled to an annual asset management fee ranging from 0.5% to 1.5%, depending on the type of investment and based on the average market value or average equity value, as applicable, of our investments. Asset management fees are payable in cash and/or shares of our Class A common stock at our option, after consultation with our Advisor. If our Advisor receives ~~all or a portion of its fees~~ in shares, the number of shares issued is determined by dividing the dollar amount of fees by our most recently published estimated net asset value per share ~~or NAV,~~(“NAV”) per Class A share, which was ~~$8.24~~$8.91 as of June 30, ~~2017. For the three and nine months ended September 30, 2017,~~2021. From January 1, 2020 through March 31, 2020, at our option our Advisor received 50% of the asset management fees in shares of our Class A common stock and 50% in cash. Effective April 1, 2020, at our option our Advisor receives all of its asset management fees in shares of our Class A common stock. AtAs of September 30, ~~2017,~~2021, our Advisor owned ~~3,266,723~~7,983,966 shares ~~or 2.3%,~~ of our Class A common stock, or 5.3% of our total Class A and Class C shares outstanding. Asset management fees are included in Property expenses, excluding reimbursable tenant costs in the condensed consolidated financial statements.

~~Annual Distribution and Shareholder Servicing Fee~~

Carey Financial LLC, or Carey Financial, the former broker-dealer subsidiary of our Advisor, received an annual distribution and shareholder servicing fee from us in connection with our Class C common stock, which it may have re-allowed to selected dealers. The amount of the annual distribution and shareholder servicing fee is 1.0% of the most recently published NAV of our Class C common stock. The annual distribution and shareholder servicing fee accrues daily and is payable quarterly in arrears. We will no longer incur the annual distribution and shareholder servicing fee beginning on the date at which, in the aggregate, underwriting compensation from all sources, including the annual distribution and shareholder servicing fee, any organizational and offering fee paid for underwriting and underwriting compensation paid by WPC and its affiliates, reaches 10.0% of the gross proceeds from our initial public offering, which it had not yet reached as of September 30, 2017. At December 31, 2016, the liability balance related to this fee was $7.4 million and was recorded within Due to affiliate in the consolidated financial statements to reflect the present value of the estimated future payments of the annual distribution and shareholder servicing fee. Beginning with the payment for the third quarter of 2017, paid during the first month of the fourth quarter, the annual distribution and shareholder servicing fees will be paid directly to selected dealers rather than through Carey Financial. There is no change in the amount of the distribution and shareholder servicing fees that we incur. As of September 30, 2017, the remaining liability balance of $6.1 million was due directly to the selected dealers and accordingly, we have reclassified the balance from Due to affiliate to Accounts payable, accrued expenses and other liabilities in the consolidated financial statements.

Acquisition and Disposition Fees

Our Advisor receives acquisition fees, a portion of which is payable upon acquisition, while the remaining portion is subordinated to a preferred return of a non-compounded cumulative distribution of 5.0% per annum (based initially on our invested capital). The initial acquisition fee and subordinated acquisition fee are 2.5% and 2.0%, respectively, of the aggregate total cost of our portion of each investment for all investments, other than those in readily marketable real estate securities purchased in the secondary market, for which our Advisor will not receive any acquisition fees. Deferred acquisition fees are scheduled to be paid in three equal annual installments following the quarter in which a property was purchased and are subject to the preferred return described above. The preferred return was achieved as of the periods ended September 30, ~~2017~~2021 and December 31, ~~2016.~~2020. Unpaid installments of deferred acquisition fees are included in Due to ~~affiliate~~affiliates in the condensed consolidated financial statements and bear interest at an annual rate of 2.0%.

Effective January 1, 2020, the Advisor has waived its right to disposition fees with respect to sales and dispositions of single investments and portfolios of investments. The ~~cumulative total acquisition costs, including acquisition fees paid to the advisor,~~Advisor may ~~not exceed 6.0% of the aggregate contract purchase price of all investments, which is measured at the end of each year.~~

~~In addition, pursuant to the advisory agreement, our Advisor may~~still be entitled to ~~receive~~disposition fees in connection with a ~~disposition fee equal~~transaction or series of transactions related to ~~the lesser of (i) 50.0% of the competitive real estate commission (as defined in the advisory agreement)~~a merger, liquidation, or ~~(ii) 3.0% of the contract sales price of the investment being sold. These fees are paid~~other event, at the discretion of our board of directors.

~~CPA~~^®~~:18 – Global 9/30/2017 10-Q~~– 13

~~Notes to Consolidated Financial Statements (Unaudited)~~

Personnel and Overhead Reimbursements

Under the terms of the advisory agreement, our Advisor allocates a portion of its personnel and overhead expenses to us and the other entities that are managed by WPC and its affiliates, including Corporate Property Associates 17 – Global, Carey Watermark Investors Incorporated, Carey Watermark Investors 2 Incorporated, and Carey European Housing Fund I L.P., which are collectively referred to as the Managed Programs. Prior to September 11, 2017, our Advisor also allocated a portion of its personnel and overhead expenses to Carey Credit Income Fund (now known as Guggenheim Credit Income Fund). Our Advisor allocates these expenses to us on the basis of our trailing four quarters of reported revenues in comparison to those of WPC and other entities managed by WPC and its affiliates.

We reimburse our Advisor for various expenses it incurs in the course of providing services to us. We reimburse certain third-party expenses paid by our Advisor on our behalf, including property-specific costs, professional fees, office expenses, and business development expenses. In addition, we reimburse our Advisor for the allocated costs of personnel and overhead in managing our day-to-day operations, including accounting services, stockholder services, corporate management, and property management and operations. We do not reimburse our Advisor for the cost of personnel if these personnel provide services for transactions for which our Advisor receives a transaction fee, such as for acquisitions and dispositions. Under the advisory agreement, ~~currently in place,~~ the amount of applicable personnel costs allocated to us ~~was~~is capped at ~~2.2% and 2.0%~~1.0% of our pro rata ~~lease~~total revenues for ~~2016~~each of 2021 and ~~2017, respectively. Costs related~~2020. Our Advisor allocates overhead expenses to ~~our Advisor’s legal transactions group are~~us based ~~on a schedule of expenses relating to services performed for different types of transactions, such as financing, lease amendments, and dispositions, among other categories, and includes 0.25%~~upon the percentage of the ~~total investment cost of an acquisition.~~Advisor’s full-time employee equivalents that are attributable to us, to be reviewed annually by us and the Advisor. In general, personnel and overhead reimbursements are included in General and administrative expenses in the condensed consolidated financial statements. ~~However, we capitalize certain of the costs related to our Advisor’s legal transactions group if the costs relate to a transaction that is not considered to be a business combination.~~

~~Excess Operating Expenses~~

Our Advisor is obligated to reimburse us for the amount by which our operating expenses exceeds the “2%/25% guidelines” (the greater of 2% of average invested assets or 25% of net income) as defined in the advisory agreement for any 12-month period, subject to certain conditions. For the most recent four trailing quarters, our operating expenses were below this threshold.

Available Cash Distributions

WPC’s interest in the Operating Partnership entitles it to receive distributions of up to 10.0% of the available cash generated by the Operating Partnership ~~referred to as the Available~~(the “Available Cash ~~Distribution,~~Distribution”), which is defined as cash generated from operations, excluding capital proceeds, as reduced by operating expenses and debt service, excluding prepayments and balloon payments. Available Cash Distributions are included in Net income attributable to noncontrolling interests in the condensed consolidated financial statements.

~~Jointly Owned Investments and Other Transactions with our Affiliates~~

At September 30, 2017, we owned interests ranging from 50% to 97% in jointly owned investments, with the remaining interests held by affiliates or by third parties. We consolidate all of these joint ventures with exception to our sole equity investment (~~Note 4~~), which we account for under the equity method of accounting. Additionally, no other parties hold any rights that overcome our control. We account for the minority share of these investments as noncontrolling interests.

~~CPA~~^®:CPA:18 – Global 9/30/~~2017~~2021 10-Q– 1412

Notes to Condensed Consolidated Financial Statements (Unaudited)

Note 4. Real Estate, Operating Real Estate, Real Estate Under Construction, and ~~Equity Investment in Real Estate~~Assets Held for Sale

Real Estate — Land, Buildings and Improvements

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, 2021		December 31, 2020
Land	$	265,612	$	235,243
Buildings and improvements	1,281,394		1,205,111
Less: Accumulated depreciation	(191,933)		(172,319)
	$	1,355,073	$	1,268,035

September 30, 2017 December 31, 2016
Land $ 203,918
$ 173,184
Buildings and improvements 1,042,895
817,626
Less: Accumulated depreciation (79,998 ) (55,980 )
$ 1,166,815
$ 934,830

During the nine months ended September 30, 2017, the U.S. dollar weakened against the euro, as the end-of-period rate for the U.S. dollar in relation to the euro increased by 12.0% to $1.1806 from $1.0541. As a result, theThe carrying value of our Real ~~estate~~Estate — ~~land,~~Land, buildings and improvements ~~increased~~decreased by ~~$64.4~~$47.2 million from December 31, ~~2016~~2020 to September 30, ~~2017.~~2021, reflecting the impact of exchange rate fluctuations during the same period (Note 2).

Depreciation expense, including the effect of foreign currency translation, on our real estate was ~~$7.5~~$9.5 million and ~~$6.5~~$7.7 million for the three months ended September 30, ~~2017~~2021 and ~~2016,~~2020, respectively, and ~~$20.5~~$27.5 million and ~~$19.3~~$22.1 million for the nine months ended September 30, ~~2017~~2021 and ~~2016,~~2020, respectively.

~~Acquisition of Real Estate During 2017~~

~~On March 14, 2017~~, we acquired a 90% controlling interest in a warehouse facility in Iowa City, Iowa, which was deemed to be an asset acquisition, at a total cost of $8.2 million, including net lease intangibles of $1.6 million (~~Note 6) and acquisition-related costs of $0.4 million that were capitalized. The seller retained a 10% interest in the property, which is the equivalent of $0.8 million of the purchase price.~~

Operating Real Estate — Land, Buildings and Improvements

Operating real estate, which consists of our self-storage and ~~multi-family~~student housing properties ~~at cost,~~(not subject to net lease agreements), is summarized as follows (in thousands):


	September 30, 2021		December 31, 2020
Land	$	80,481	$	89,148
Buildings and improvements	396,051		507,850
Less: Accumulated depreciation	(76,540)		(73,569)
	$	399,992	$	523,429

September 30, 2017 December 31, 2016
Land $ 106,279
$ 105,631
Buildings and improvements 511,211
500,927
Less: Accumulated depreciation (40,485 ) (26,937 )
$ 577,005
$ 579,621

The carrying value of our Operating real estate — land, buildings and improvements increased by ~~$4.0~~$1.5 million from December 31, ~~2016~~2020 to September 30, ~~2017, due to~~2021, reflecting the ~~weakening~~impact of ~~the U.S. dollar relative to foreign currencies~~exchange rate fluctuations during the ~~period.~~same period (Note 2).

Depreciation expense, including the effect of foreign currency translation, on our operating real estate was ~~$4.6 million and~~ $4.1 million for both the three months ended September 30, ~~2017~~2021 and ~~2016, respectively,~~2020, and ~~$13.5~~$12.7 million and ~~$11.9~~$11.7 million for the nine months ended September 30, ~~2017~~2021 and ~~2016,~~2020, respectively.

Dispositions of Operating Real Estate

During the nine months ended September 30, 2021, we sold 2 student housing operating properties located in Cardiff and Portsmouth, United Kingdom. As a result, the carrying value of our Operating real estate — land, buildings and improvements decreased by $114.1 million from December 31, 2020 to September 30, 2021 (Note 1 2).

~~CPA~~^®:CPA:18 – Global 9/30/~~2017~~2021 10-Q– 1513

Notes to Condensed Consolidated Financial Statements (Unaudited)

Leases

Lease Income

Lease income recognized and included within Lease revenues — net-leased and Lease revenues — operating real estate in the condensed consolidated statements of operations are as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Lease revenues — net-leased
Lease income — fixed	$	26,741	$	22,184	$	75,189	$	61,267
Lease income — variable (a)	4,884		3,187		13,474		11,064
Total operating lease income (b)	$	31,625	$	25,371	$	88,663	$	72,331

Lease revenues — operating real estate
Lease income — fixed	$	20,408	$	16,454	$	58,861	$	49,770
Lease income — variable (c)	628		522		1,719		1,657
Total operating real estate income	$	21,036	$	16,976	$	60,580	$	51,427

___________

(a)Includes (i) rent increases based on changes in the Consumer Price Index (“CPI”) and other comparable indices and (ii) reimbursements for property taxes, insurance, and common area maintenance services.

(b)Excludes interest income from direct financing leases of $0.4 million for both the three months ended September 30, 2021 and 2020, and $1.1 million and $2.0 million for the nine months ended September 30, 2021 and 2020, respectively (Note 5). Interest income from direct financing leases is included in Lease revenues — net-leased in the condensed consolidated statements of operations.

(c)Primarily comprised of late fees and administrative fees.

Real Estate Under Construction

The following table provides the activity of our Real estate under construction (in thousands):


	Nine Months Ended September 30, 2021
Beginning balance	$	180,055
Placed into service	(171,870)
Capitalized funds	87,809
Foreign currency translation adjustments	(7,366)
Capitalized interest	4,327
Ending balance	$	92,955

Projects Placed into Service

During the nine months ended September 30, 2021, we completed and placed into service the following student housing properties, which became subject to individual net lease agreements with minimum fixed rents and were reclassified to Real estate — Land, buildings and improvements on our condensed consolidated balance sheets (in thousands):

Property Location(s)

Date of Completion

Total Capitalized Costs (a) (b)

Coimbra, Portugal

7/5/2021

34,986

Pamplona, Spain

7/8/2021

32,781

Seville, Spain

7/30/2021

47,694

Bilbao, Spain

8/24/2021

56,720

172,181

___________

CPA:18 – Global 9/30/2021 10-Q– 14

Notes to Condensed Consolidated Financial Statements (Unaudited)

Nine Months Ended September 30, 2017
Beginning balance $ 182,612
Placed into service (185,397 )
Capitalized funds 84,637
Foreign currency translation adjustments 16,459
Capitalized interest 4,102
Ending balance $ 102,413
(a)Amounts include capitalized interest, carrying costs, and acquisition fees payable to our Advisor (Note 3).

~~Capitalized Funds~~

~~On May 17, 2017, we made our final payment to the developer for the build-to-suit project located in Eindhoven, the Netherlands for $18.7 million, which was based on~~(b)Amounts reflect the exchange rate of the euro on the date of the acquisition. The payment was included in the expected total investment amount when the first draw of the build-to-suit was funded in March 2015. Additionally, we also recorded $9.4 million of deferred tax liabilities in connection with our investment in this project. Simultaneous with the payment to the developer, the project was completed andassets were placed into service.

~~During the nine months ended September 30, 2017, construction commenced on one of our previous build-to-suit investments (Note 5). The net investment of $10.7 million was reclassified to Real estate under construction from Net investments in direct financing leases during the nine months ended September 30, 2017.~~Capitalized Funds

~~Ghana~~ — On February 19, 2016, we invested in a build-to-suit joint venture with a third party for a university complex development site located in Accra, Ghana. As of September 30, 2017, total capitalized funds related to this investment were $32.5 million, inclusive of accrued construction costs of $3.1 million and the effect of recording deferred tax liabilities of $3.7 million.

At the time of the investment, the joint venture obtained third-party financing in an amount up to $41.0 million from the Overseas Private Investment Corporation (“OPIC”), a financial institution of the U.S. Government, with an estimated interest rate based on the U.S. Treasury rate plus 300 basis points. Funding of this loan is subject to the tenant obtaining a letter of credit, which to date has not occurred. Because the tenant has not obtained the required letter of credit, it is in default under its concession agreement with us, and we are currently unable to estimate when this project will be completed, if at all. As a result, as of September 30, 2017, we had no amount outstanding under this financing arrangement. If the project is completed, our total investment is expected to be approximately $65.7 million.

We have evaluated this investment for impairment and probability-weighted different possible scenarios in estimating future undiscounted cash flows, including payment from the tenant or through the insurance policy that we have with regard to the completion of this project. Because we believe there is a high probability that we will recover the full amount we have invested, we have not recorded any impairment charge in connection with this investment as of September 30, 2017, although recovery may take a period of time from the date on which a claim is filed. We will continue to monitor the investment for impairment.

During the nine months ended September 30, ~~2017,~~2021, total capitalized funds primarily related to ~~our build-to-suit projects, which were comprised primarily of initial funding of $20.1 million and~~ construction draws for our student housing development projects, and includes $10.3 million of ~~$55.2 million. Capitalized funds include~~ accrued costs, ~~of $3.4 million,~~ which is a non-cash investing activity.

Capitalized Interest

Capitalized interest includes interest incurred during construction as well as amortization of the mortgage discount and deferred financing costs, ~~and interest incurred during construction,~~ which totaled ~~$4.1~~$4.3 million during the nine months ended September 30, ~~2017~~2021, and is a non-cash investing activity.

~~CPA~~^®~~:18 – Global 9/30/2017 10-Q~~– 16

~~Notes to Consolidated Financial Statements (Unaudited)~~

~~Placed into Service~~

During the nine months ended September 30, 2017, we placed into service a partially completed hotel, two build-to-suit projects, and the remaining portion of a substantially completed student-housing development, which we sold subsequent to September 30, 2017 (~~Note 13~~), totaling $185.4 million, which is a non-cash investing activity. Of that total, $182.5 million was reclassified to Real estate — land, buildings and improvements and $2.9 million to Operating real estate — land, buildings and improvements.

Ending Balance

AtAs of September 30, ~~2017,~~2021, we had ~~four open build-to-suit~~3 ongoing student housing development projects, and ~~one open build-to-suit expansion project with~~ aggregate unfunded commitments of approximately ~~$116.2 million.~~$70.7 million, excluding capitalized interest, accrued costs, and capitalized acquisition fees.

Assets Held for Sale, Net

Below is a summary of our properties held for sale (in thousands):


	September 30, 2021		December 31, 2020
Real estate — Land, buildings and improvements	$	13,417	$	—
Accumulated depreciation and amortization	(2,306)		—
Assets held for sale, net	$	11,111	$	—

At September 30, 2021, we had 1 property classified as Assets held for sale, net, with an aggregate carrying value of $11.1 million, which was sold in October 2021 (Note 14).

Equity Investment in Real Estate

~~We have an~~

On December 23, 2020 we sold our 100% interest in an unconsolidated investment in our Self Storage segment that ~~relates~~related to a joint venture for ~~the development of~~ ~~four~~3 self-storage facilities in Canada. This ~~investment is~~entity was jointly owned with a third party, which iswas also the general ~~partner. Our ownership interest in~~partner of the joint ~~venture is 90%; the joint-venture partner is funding its equity interest with the distributions they are eligible to receive upon the properties being placed into service.~~venture. As of both September 30, 2017, the joint-venture partner had not funded their 10% equity interest. We do not consolidate this entity because we are not the primary beneficiary and the nature of our involvement in the activities of the entity allows us to exercise significant influence but does not give us power over decisions that significantly affect the economic performance of the entity.

On January 26, 2017, the joint venture purchased a vacant parcel of land in Toronto, Ontario for $5.1 million, which is based on the exchange rate of the Canadian dollar at the date of acquisition. This parcel of land will be the site of our fourth self-storage development in Canada as a part of this joint venture.

During the nine months ended September 30, 2017, we commenced operations in two Canadian self-storage facilities upon the completion of distinct phases of the overall development, and as a result, placed $9.3 million and $10.1 million of the total amounts for these projects into service. During the three and nine months ended September 30, 2017, we incurred losses of $0.3 million and $0.7 million, respectively, relating to these distinct phases of the projects, which are included in Equity in losses of equity method investment in real estate on our consolidated financial statements.

~~At September 30, 2017~~2021 and December 31, ~~2016, our total~~2020, we no longer have any equity investment balance for these properties was $21.2 million and $14.7 million, respectively, and the joint venture had total third-party recourse debt of $20.3 million and $13.8 million, respectively. At September 30, 2017, the unfunded commitments for these build-to-suit projects totaled approximately $28.2 million.method investments.

~~CPA~~^®~~:18 – Global 9/30/2017 10-Q~~– 17

~~Notes to Consolidated Financial Statements (Unaudited)~~

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 receivables portfolio consists of our ~~Notes~~notes receivable (which are included in Other assets, net in the condensed consolidated financial statements) and our Net investments in direct financing ~~leases.~~leases (net of allowance for credit losses). Operating leases are not included in finance ~~receivables as such amounts are not recognized as an asset in the consolidated financial statements.~~receivables.

CPA:18 – Global 9/30/2021 10-Q– 15

Notes to Condensed Consolidated Financial Statements (Unaudited)

Notes Receivable

~~Our Notes receivable at both~~As of September 30, ~~2017 and December 31, 2016 consist~~2021, our notes receivable was comprised of a $28.0 million mezzanine tranche of 10-year commercial mortgage-backed securities on the Cipriani banquet halls in New York, New York, with a maturity date of July 2024. The mezzanine tranche is subordinated to a $60.0 million senior loan on the properties. Interest-only payments at a rate of 10% per annum are due through its maturity date. As of both September 30, 2021 and a $38.5 million mezzanine loan collateralized by 27 retail stores in Minnesota, Wisconsin, and Iowa leased to Mills Fleet Farm Group LLC. We have and will continue to receive interest-only payments on each of these loans through maturity in July 2024 and October 2018, respectively. As a result,December 31, 2020, the balance for this note receivable remained $28.0 million. On July 28, 2020, we were notified that the ~~receivables at~~borrower had defaulted on the mortgage loan senior to our mezzanine tranche, and since that date through September 30, ~~2017 remained $28.0~~2021 we have received $3.3 million from the borrower, which is recognized as a liability within Accounts payable, accrued expenses and ~~$38.5~~other liabilities in our condensed consolidated balance sheets. We are currently evaluating our rights and options in connection with the senior loan default and therefore have not recognized these amounts within interest income for the three and nine months ended September 30, 2021, or the three months ended September 30, 2020. Interest income was $1.4 million ~~respectively.~~for the nine months ended September 30, 2020, and is included in Other operating and interest income in our condensed consolidated statements of operations.

Net Investments in Direct Financing Leases

Net investments in our direct financing lease investments is summarized as follows (in thousands):


	September 30, 2021		December 31, 2020
Lease payments receivable	$	13,289	$	14,325
Unguaranteed residual value	15,559		15,559
	28,848		29,884
Less: unearned income	(11,472)		(12,466)
Less: allowance for credit losses	(485)		(485)
	$	16,891	$	16,933

Interest income from direct financing leases was ~~$0.9~~$0.4 million ~~and $1.1 million~~ for both the three months ended September 30, ~~2017~~2021 and ~~2016, respectively,~~2020, and ~~$2.8~~$1.1 million and ~~$3.5~~$2.0 million for the nine months ended September 30, ~~2017~~2021 and ~~2016, respectively.~~2020, respectively, and is included in Lease revenues — net-leased in our condensed consolidated statements of operations.

In 2015, we invested in a joint venture with a third party to purchase an office building located in Cardiff, United Kingdom to be redeveloped into student-housing. The existing tenant vacated the building on January 31, 2017. Upon lease termination, construction commenced, and the net investment of $10.7 million was reclassified to Real estate under construction duringDuring the nine months ended September 30, ~~2017 (Note 4~~).2020, we recorded an allowance for credit losses of $4.9 million due to changes in expected economic conditions for a net investment in a direct financing lease, which was included in Allowance for credit losses in our condensed consolidated statements of operations. This allowance for credit losses was fully reversed during the fourth quarter of 2020, when the tenant emerged from bankruptcy and the investment was reclassified as an operating lease, and is therefore not reflected in the table above. We did not record an additional allowance for credit losses during the three and nine months ended September 30, 2021.

Credit Quality of Finance Receivables

We generally ~~seek investments~~invest in facilities that we believe are critical to a tenant’s business and therefore have a ~~low~~lower risk of tenant default. AtAs of both September 30, ~~2017~~2021 and December 31, ~~2016,~~2020, we had no significant finance receivable balances that were past ~~due and~~due; however, we ~~had not established any allowances~~have an allowance for credit losses. Additionally, there were no material modifications of finance receivables during the nine months ended September 30, ~~2017.~~ 2021.

We evaluate the credit quality of our finance receivables utilizing an internal five-point credit rating scale, with one representing the highest credit quality and five representing the lowest. A credit quality of one through three indicates a range of investment grade to stable. A credit quality of four through five indicates inclusion on the watch list to risk of default. The credit quality evaluation of our finance receivables ~~was last~~is updated ~~in the third quarter of 2017.~~quarterly.

CPA:18 – Global 9/30/2021 10-Q– 16

Notes to Condensed Consolidated Financial Statements (Unaudited)

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


	Number of Tenants/Obligors at		Carrying Value at
Internal Credit Quality Indicator	September 30, 2021	December 31, 2020	September 30, 2021		December 31, 2020
1 – 3	3	3	$	16,891	$	16,933
4	1	1	28,000		28,000
5	—	—	—		—
	0		$	44,891	$	44,933

Number of Tenants/Obligors at Carrying Value at
Internal Credit Quality Indicator September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016
1 — 1 $ —
$ 10,516
2 2 1 13,796
9,154
3 2 2 29,707
29,679
4 2 3 62,282
66,747
5 — — —
—
0 $ 105,785
$ 116,096

Note 6. Intangible Assets and Liabilities

~~In connection with our investment activity (Note 4) during the nine months ended September 30, 2017, we recorded~~ In-place lease intangibles of $1.6 million that are being amortized over 14.4 years. In-place lease intangibles are included in In-place lease intangible assets in the consolidated financial statements. Below-market ground lease intangibles and above-market rent intangibles are included in ~~Other~~In-place lease and other intangible assets in the condensed consolidated financial statements. Below-market rent ~~intangibles and above-market ground lease~~ intangibles are included in Accounts payable, accrued expenses and other liabilities in the condensed consolidated financial statements.

~~CPA~~^®~~:18 – Global 9/30/2017 10-Q~~– 18

~~Notes to Consolidated Financial Statements (Unaudited)~~

~~The following table presents a reconciliation of our goodwill, which~~Goodwill is included in our Net Lease ~~reporting unit (in thousands):~~segment and included in Other assets, net in the condensed consolidated financial statements. As a result of foreign currency translation adjustments, goodwill decreased from $27.3 million as of December 31, 2020 to $26.3 million as of September 30, 2021.

Nine Months Ended September 30, 2017
Balance at January 1, 2017 $ 23,526
Foreign currency translation 2,213
Other 708
Balance at September 30, 2017 $ 26,447

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


		September 30, 2021						December 31, 2020
	Amortization Period (Years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-Lived Intangible Assets
In-place lease	7 – 23	$	240,099	$	(159,875)	$	80,224	$	244,963	$	(151,613)	$	93,350
Above-market rent	7 – 30	10,417		(5,988)		4,429		10,773		(5,670)		5,103
		250,516		(165,863)		84,653		255,736		(157,283)		98,453
Indefinite-Lived Intangible Assets
Goodwill		26,282		—		26,282		27,259		—		27,259
Total intangible assets		$	276,798	$	(165,863)	$	110,935	$	282,995	$	(157,283)	$	125,712

Finite-Lived Intangible Liabilities
Below-market rent	7 – 30	$	(14,686)	$	8,509	$	(6,177)	$	(14,776)	$	7,755	$	(7,021)
Total intangible liabilities		$	(14,686)	$	8,509	$	(6,177)	$	(14,776)	$	7,755	$	(7,021)

September 30, 2017 December 31, 2016
Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount
Finite-Lived Intangible Assets
In-place lease 1 - 23 $ 274,174
$ (108,482 ) $ 165,692
$ 260,469
$ (83,031 ) $ 177,438
Below-market ground lease 15 - 99 22,644
(1,110 ) 21,534
20,236
(706 ) 19,530
Above-market rent 3 - 30 12,734
(3,343 ) 9,391
11,846
(2,320 ) 9,526
309,552
(112,935 ) 196,617
292,551
(86,057 ) 206,494
Indefinite-Lived Intangible Assets
Goodwill 26,447
—
26,447
23,526
—
23,526
Total intangible assets $ 335,999
$ (112,935 ) $ 223,064
$ 316,077
$ (86,057 ) $ 230,020

Finite-lived Intangible Liabilities
Below-market rent 4 - 30 $ (15,449 ) $ 4,255
$ (11,194 ) $ (15,192 ) $ 3,234
$ (11,958 )
Above-market ground lease 81 (109 ) 4
(105 ) (101 ) 3
(98 )
Total intangible liabilities $ (15,558 ) $ 4,259
$ (11,299 ) $ (15,293 ) $ 3,237
$ (12,056 )

Net amortization of intangibles, including the effect of foreign currency translation, was ~~$6.8~~$3.5 million and ~~$10.3~~$3.6 million for the three months ended September 30, ~~2017~~2021 and ~~2016,~~2020, respectively, and ~~$22.4~~$10.8 million and ~~$31.5~~$10.6 million for the nine months ended September 30, ~~2017~~2021 and ~~2016,~~2020, respectively. Amortization of below-market rent and above-market rent intangibles is recorded as an adjustment to ~~Rental~~rental income; ~~amortization of below-market and above-market ground lease intangibles is included in Property expenses;~~ and amortization of in-place lease intangibles is included in Depreciation and amortization ~~expense in the~~on our condensed consolidated ~~financial statements.~~statements of operations.

CPA:18 – Global 9/30/2021 10-Q– 17

Notes to Condensed Consolidated Financial Statements (Unaudited)

Note 7. Fair Value Measurements

The fair value of an asset is defined as the exit price, which is the amount that would either be received when an asset is sold or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance establishes a three-tier fair value hierarchy based on the inputs used in measuring fair value. These tiers are: Level 1, for which quoted market prices for identical instruments are available in active markets, such as money market funds, equity securities, and U.S. Treasury securities; Level 2, for which there are inputs other than quoted prices included within Level 1 that are observable for the instrument, such as certain derivative instruments including interest rate caps, interest rate swaps, foreign currency forward contracts and foreign currency collars; and Level 3, for securities 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. For significant Level 3 items, we have also provided the unobservable ~~inputs along with their weighted-average ranges.~~inputs.

~~CPA~~^®~~:18 – Global 9/30/2017 10-Q~~– 19

~~Notes to Consolidated Financial Statements (Unaudited)~~

Derivative Assets and Liabilities — Our derivative assets and liabilities, which are included in Other assets, net and Accounts payable, accrued expenses and other liabilities, respectively, in the condensed consolidated financial statements, are comprised of ~~foreign currency forward contracts,~~ interest rate swaps, interest rate caps, and foreign currency collars (Note 8).

The valuation of our derivative instruments is determined using a discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, as well as observable market-based inputs, including interest rate curves, spot and forward rates, and implied volatilities. We incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of our derivative instruments for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. These derivative instruments ~~were measured at fair value using readily observable market inputs, such as quotations on interest rates, and~~ were classified as Level 2 as these instruments are custom, over-the-counter contracts with various bank counterparties that are not traded in an active market.

~~Derivative Liabilities~~ — Our derivative liabilities, which are included in Accounts payable, accrued expenses and other liabilities in the consolidated financial statements, are comprised of interest rate swaps and foreign currency collars (~~Note 8~~). These derivative instruments were measured at fair value using readily observable market inputs, such as quotations on interest rates, and were classified as Level 2 because they are custom, over-the-counter contracts with various bank counterparties that are not traded in an active market.

~~Rent Guarantees~~ — Our rent guarantees, which are included in Other assets, net in the consolidated financial statements, are related to three of our international investments. These rent guarantees were measured at fair value using a discounted cash flow model, and were classified as Level 3 because the model uses unobservable inputs. At September 30, 2017 and December 31, 2016, our rent guarantees had a fair value of $0.8 million and $0.5 million, respectively. We determined the fair value of the rent guarantees based on an estimate of discounted cash flows using a discount rate that ranged from 7% to 9% and a growth rate that ranged from 1% to 2%, which are considered significant unobservable inputs. Significant increases or decreases to these inputs in isolation would result in a significant change in the fair value measurement. During the three and nine months ended September 30, 2017, we recognized $0.4 million and $0.9 million, respectively, of mark-to-market gains related to these rent guarantees within Other income and (expenses) on our consolidated financial statements. During the three and nine months ended September 30, 2016, we recognized $0.3 million and $1.1 million, respectively, of mark-to-market gains related to these rent guarantees within Other income and (expenses) on our consolidated financial statements.

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, ~~2017~~2021 and ~~2016.~~2020. Gains and losses (realized and unrealized) recognized on items measured at fair value on a recurring basis included in earnings are reported within Other ~~income~~gains and ~~(expenses)~~(losses) on our condensed consolidated financial statements.

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


												September 30, 2021				December 31, 2020
		September 30, 2017				December 31, 2016					Level	Carrying Value		Fair Value		Carrying Value		Fair Value
	Level	Carrying Value		Fair Value		Carrying Value		Fair Value
Debt, net ^{(a) (b)}	3	$	1,265,442	$	1,292,328	$	1,157,411	$	1,177,409
Non-recourse secured debt, net (a) (b)										Non-recourse secured debt, net (a) (b)	3	$	1,248,224	$	1,264,814	$	1,310,378	$	1,329,482
Notes receivable ^(c)	3	66,500		68,450		66,500		68,450		Notes receivable (c)	3	28,000		28,000		28,000		28,000

___________


~~(a)~~	Debt, net consists of Non-recourse debt, net and Bonds payable, net. At both September 30, 2017 and December 31, 2016, the carrying value of Non-recourse debt, net includes unamortized deferred financing costs of $7.6 million. At both September 30, 2017 and December 31, 2016, the carrying value of Bonds payable, net includes unamortized deferred financing costs of $0.9 million (~~Note 9~~).

~~(b)~~

We determined the estimated fair value of our Non-recourse debt and Bonds payable using a discounted cash flow model that estimates the present value of the future loan payments by discounting such payments at current estimated market interest rates. The estimated market interest rates take into account interest rate risk and the value of the underlying collateral, which includes quality of the collateral, the credit quality of the tenant/obligor, and the time until maturity.

~~(c)~~

We determined the estimated fair value of our Notes receivable using a discounted cash flow model with rates that take into account the credit of the tenant/obligor, order of payment tranches, 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.

(a)As of September 30, 2021 and December 31, 2020, the carrying value of Non-recourse secured debt, net includes unamortized deferred financing costs of $6.9 million for both periods, and unamortized premium, net of $2.9 million and $2.5 million, respectively (Note 9).

(b)We determined the estimated fair value of our Non-recourse secured debt, net using a discounted cash flow model that estimates the present value of the future loan payments by discounting such payments at current estimated market interest rates. The estimated market interest rates take into account interest rate risk and the value of the underlying collateral, which includes quality of the collateral, the credit quality of the tenant/obligor, and the time until maturity.

(c)We determined the estimated fair value of our Notes receivable using a discounted cash flow model with rates that take into account the credit of the tenant/obligor, order of payment tranches, 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.

We estimated that our other financial assets and liabilities (excluding net investments in direct financing leases) had fair values that approximated their carrying values atas of both September 30, ~~2017~~2021 and December 31, ~~2016.~~2020.

~~CPA~~^®:CPA:18 – Global 9/30/~~2017~~2021 10-Q– 2018

Notes to Condensed Consolidated Financial Statements (Unaudited)

Note 8. Risk Management and Use of Derivative Financial Instruments

Risk Management

In the normal course of our ongoing business operations, we encounter economic risk. There are four main components of economic risk that impact us: interest rate risk, credit risk, market risk, and foreign currency risk. We are primarily subject to interest rate risk on our interest-bearing liabilities. Credit risk is the risk of default on our operations and our 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. We own international investments, primarily in Europe, and are subject to risks associated with fluctuating foreign currency exchange rates.

Derivative Financial Instruments

~~When we use derivative instruments, it is generally to reduce~~There have been no significant changes in our exposure to fluctuations in interest rates and foreign currency exchange rate movements. We have not entered into, and do not plan to enter into, financial instruments for trading or speculative purposes. In addition to entering into derivative instruments on our own behalf, we may also be a party to derivative instruments that are embedded in other contracts. The primary risks related to our use of derivative instruments include a counterparty to a hedging arrangement defaulting on its obligation and a downgrade in the credit quality of a counterparty to such an extent that our ability to sell or assign our side of the hedging transaction is impaired. While we seek to mitigate these risks by entering into hedging arrangements with 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~~policies from what was disclosed in 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 (loss) until the hedged item is recognized in earnings. For a derivative designated, and that qualified, as a net investment hedge, the effective portion of the change in its fair value and/or the net settlement of the derivative is reported in Other comprehensive income (loss) as part of the cumulative foreign currency translation adjustment. The ineffective portion of the change in fair value of any derivative is immediately recognized in earnings.

All derivative transactions with an individual counterparty are governed by a master International Swap and Derivatives Association agreement, which can be considered as a master netting arrangement; however, we report all our derivative instruments on a gross basis on our consolidated financial statements.2020 Annual Report. At both September 30, ~~2017~~2021 and December 31, ~~2016~~,2020, no cash collateral had been posted or received for any of our derivative positions.

~~CPA~~^®~~:18 – Global 9/30/2017 10-Q~~– 21

~~Notes to Consolidated Financial Statements (Unaudited)~~

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


Derivatives Designated as Hedging Instruments	Balance Sheet Location	Derivative Assets Fair Value at				Derivative Liabilities Fair Value at
		September 30, 2021		December 31, 2020		September 30, 2021		December 31, 2020
Foreign currency collars	Other assets, net	$	626	$	440	$	—	$	—
Interest rate caps	Other assets, net	14		21		—		—
Interest rate swaps	Accounts payable, accrued expenses and other liabilities	—		—		(1,905)		(3,350)
Foreign currency collars	Accounts payable, accrued expenses and other liabilities	—		—		—		(198)
		640		461		(1,905)		(3,548)
Derivatives Not Designated as Hedging Instruments
Interest rate caps	Other assets, net	16		—		—		—
Interest rate swap	Accounts payable, accrued expenses and other liabilities	—		—		(9)		(28)
		16		—		(9)		(28)
Total derivatives		$	656	$	461	$	(1,914)	$	(3,576)

Derivatives Designated as Hedging Instruments Balance Sheet Location Asset Derivatives Fair Value at Liability Derivatives Fair Value at
September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016
Foreign currency forward contracts Other assets, net $ 2,721
$ 5,502
$ —
$ —
Interest rate swaps Other assets, net 329
393
—
—
Foreign currency collars Other assets, net 111
1,284
—
—
Interest rate caps Other assets, net 1
1
—
—
Foreign currency collars Accounts payable, accrued expenses and other liabilities —
—
(2,648 ) (33 )
Interest rate swaps Accounts payable, accrued expenses and other liabilities —
—
(1,104 ) (1,151 )
Derivatives Not Designated as Hedging Instruments
Foreign currency collars Accounts payable, accrued expenses and other liabilities —
—
(321 ) —
Total $ 3,162
$ 7,180
$ (4,073 ) $ (1,184 )

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


	Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income (Loss) (Effective Portion)													Amount of Income (Loss) Recognized on Derivatives in Other Comprehensive Loss
	Three Months Ended September 30,						Nine Months Ended September 30,							Three Months Ended September 30,				Nine Months Ended September 30,
Derivatives in Cash Flow Hedging Relationships	2017			2016			2017			2016			Derivatives in Cash Flow Hedging Relationships	2021		2020		2021		2020
Interest rate swaps													Interest rate swaps	$	234	$	708	$	1,445	$	(1,942)
Foreign currency collars	$	(1,376	)	$	(544	)	$	(3,990	)	$	(976	)	Foreign currency collars	109		(810)		384		(310)
Interest rate caps													Interest rate caps	90		(50)		86		(174)
Foreign currency forward contracts	(819		)	(750		)	(2,452		)	(1,739		)	Foreign currency forward contracts	—		(249)		—		(742)
Interest rate swaps	42			366			12			(1,947		)
Interest rate caps	8			—			4			(16		)
Derivatives in Net Investment Hedging Relationship ^(a)													Derivatives in Net Investment Hedging Relationship (a)
Foreign currency forward contracts	(87		)	(152		)	(55		)	(284		)
Foreign currency collars	(87		)	(14		)	(259		)	(22		)	Foreign currency collars	—		(16)		—		113
Total	$	(2,319	)	$	(1,094	)	$	(6,740	)	$	(4,984	)	Total	$	433	$	(417)	$	1,915	$	(3,055)

___________


~~(a)~~	~~The effective portion of the changes in fair value of these contracts is reported in the foreign currency translation adjustment section of Other comprehensive income (loss).~~

Amount of Gain (Loss) on Derivatives Reclassified from
Other Comprehensive Income (Loss) into Income (Effective Portion)
Derivatives in Cash Flow Hedging Relationships Location of Gain (Loss) Recognized in Income Three Months Ended September 30, Nine Months Ended September 30,
2017 2016 2017 2016
Foreign currency forward contracts Other income and (expenses) $ 278
$ 315
$ 968
$ 944
Interest rate swaps Interest expense (142 ) (230 ) (529 ) (660 )
Interest rate caps Interest expense (17 ) (1 ) (32 ) (1 )
Foreign currency collars Other income and (expenses) 16
27
185
66
Total $ 135
$ 111
$ 592
$ 349

~~CPA~~^®:CPA:18 – Global 9/30/~~2017~~2021 10-Q– 2219

Notes to Condensed Consolidated Financial Statements (Unaudited)

(a)The changes in fair value and the settlement of these contracts were reported in the foreign currency translation adjustment section of Other comprehensive (loss) income.


		Amount of (Loss) Gain on Derivatives Reclassified from Other Comprehensive Loss into Income
Derivatives in Cash Flow Hedging Relationships	Location of Gain (Loss) Recognized in Income	Three Months Ended September 30,				Nine Months Ended September 30,
		2021		2020		2021		2020
Interest rate swaps	Interest expense	$	(245)	$	(881)	$	(1,107)	$	(1,494)
Interest rate caps	Interest expense	(101)		(22)		(166)		(59)
Foreign currency collars	Other gains and (losses)	66		189		176		543
Foreign currency forward contracts	Other gains and (losses)	—		228		—		770
Total		$	(280)	$	(486)	$	(1,097)	$	(240)

Amounts reported in Other comprehensive (loss) income ~~(loss)~~ related to our interest ~~rate swaps~~derivative contracts will be reclassified to Interest expense as interest ~~payments are made~~is incurred on our variable-rate debt. Amounts reported in Other comprehensive (loss) income ~~(loss)~~ related to foreign currency derivative contracts will be reclassified to Other ~~income~~gains and ~~(expenses)~~(losses) when the hedged foreign currency contracts are settled. AtAs of September 30, ~~2017,~~2021, we estimated that an additional ~~$0.6~~$0.9 million and ~~$0.7~~$0.5 million will be reclassified as Interest expense and Other ~~expenses,~~gains and (losses), respectively, during the next 12 months.

The following table presents the impact of our derivative instruments in the condensed consolidated financial statements (in thousands):


		Amount of Gain on Derivatives Recognized in Income
Derivatives Not in Cash Flow Hedging Relationships	Location of Gain (Loss) Recognized in Income	Three Months Ended September 30,				Nine Months Ended September 30,
		2021		2020		2021		2020
Foreign currency collars	Other gains and (losses)	$	21	$	(109)	$	(21)	$	(118)
Interest rate swap	Interest expense	6		5		18		16
Foreign currency forward contracts	Other gains and (losses)	—		(23)		—		(16)
Derivatives in Cash Flow Hedging Relationships
Interest rate swaps	Interest expense	245		881		1,107		1,494
Total		$	272	$	754	$	1,104	$	1,376

Amount of Gain (Loss) on Derivatives Recognized in Income
Derivatives Not in Cash Flow Hedging Relationships
Location of Gain (Loss)
Recognized in Income
Three Months Ended September 30, Nine Months Ended September 30,
2017 2016 2017 2016
Foreign currency collars Other income and (expenses) $ (193 ) $ (11 ) $ (238 ) $ (21 )
Interest rate swaps Interest expense (21 ) —
(44 ) —
Derivatives in Cash Flow Hedging Relationships
Interest rate swaps ^(a)
Interest expense 7
5
15
1
Foreign currency collars Other income and (expenses) (1 ) —
(5 ) —
Total $ (208 ) $ (6 ) $ (272 ) $ (20 )

~~__________~~


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

Interest Rate Swaps and Caps

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

CPA:18 – Global 9/30/2021 10-Q– 20

Notes to Condensed Consolidated Financial Statements (Unaudited)

The interest rate swaps and caps that our consolidated subsidiaries had outstanding atas of September 30, ~~2017~~2021 are summarized as follows (currency in thousands):


Interest Rate Derivatives	Number of Instruments	Notional Amount		Fair Value at September 30, 2017 ^(a)			Interest Rate Derivatives	Number of Instruments	Notional Amount		Fair Value at September 30, 2021 (a)
Interest rate swaps	8	61,144	USD	$	(747	)	Interest rate swaps	6	43,461	USD	$	(1,905)
Interest rate swap	1	10,386	EUR	(28		)
Interest rate caps	3	27,700	USD	1			Interest rate caps	2	59,000	GBP	16
Interest rate caps							Interest rate caps	4	61,913	EUR	14
Derivatives Not Designated as Hedging Instruments							Derivatives Not Designated as Hedging Instruments
Interest rate swap (b)							Interest rate swap (b)	1	8,461	EUR	(9)
				$	(774	)					$	(1,884)

___________


~~(a)~~	~~Fair value amount is based on the exchange rate of the euro at September 30, 2017, as applicable.~~

(a)Fair value amount is based on the exchange rate of the respective currencies as of September 30, 2021, as applicable.

(b)This interest rate swap does not qualify for hedge accounting; however, it does protect against fluctuations in interest rates related to the underlying variable-rate debt.

~~CPA~~^®~~:18 – Global 9/30/2017 10-Q~~– 23

~~Notes to Consolidated Financial Statements (Unaudited)~~

Foreign Currency Contracts

We are exposed to foreign currency exchange rate movements, primarily in the euro, the Norwegian krone, and, to a lesser extent, the ~~Norwegian krone.~~British pound sterling. We manage foreign currency exchange rate movements by generally placing our debt service obligation on an investment in the same currency as the tenant’s rental obligation to us. This reduces our overall exposure to the net cash flow from that investment. However, we are subject to foreign currency exchange rate movements to the extent that there is a difference in the timing and amount of the rental obligation and the debt service. Realized and unrealized gains and losses recognized in earnings related to foreign currency transactions are included in Other ~~income~~gains and ~~(expenses)~~(losses) in the condensed 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 and holding them to maturity, 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. Our foreign currency ~~forward contracts and foreign currency~~ collars have maturities of 7462 months or less.

The following table presents the foreign currency derivative contracts we had outstanding and their designations atas of September 30, ~~2017~~2021 (currency in thousands):


Foreign Currency Derivatives	Number of Instruments	Notional Amount		Fair Value at September 30, 2021
Designated as Cash Flow Hedging Instruments
Foreign currency collars	8	5,200	EUR	$	537
Foreign currency collars	6	7,500	NOK	89
				$	626

Foreign Currency Derivatives Number of Instruments Notional
Amount Fair Value at
September 30, 2017
Designated as Cash Flow Hedging Instruments
Foreign currency collars 52 33,215
EUR $ (2,420 )
Foreign currency forward contracts 25 9,670
EUR 1,915
Foreign currency forward contracts 19 30,010
NOK 762
Foreign currency collars 20 47,670
NOK (141 )
Not Designated as Hedging Instruments
Foreign currency collars 2 3,000
EUR (321 )
Designated as Net Investment Hedging Instruments
Foreign currency forward contracts 2 4,504
NOK 44
Foreign currency collars 4 24,740
NOK 24
$ (137 )

Credit Risk-Related Contingent Features

We measure our credit exposure on a counterparty basis as the net positive aggregate estimated fair value of our derivatives, net of any collateral received. No collateral was received as of September 30, ~~2017.~~2021. At September 30, ~~2017,~~2021, our total credit exposure was ~~$1.8~~$0.6 million and the maximum exposure to any single counterparty was ~~$1.5~~$0.5 million.

Some of the agreements we have with our derivative counterparties contain cross-default provisions that could trigger a declaration of default on our derivative obligations if we default, or are capable of being declared in default, on certain of our indebtedness. AtAs of September 30, ~~2017,~~2021, we had not been declared in default on any of our derivative obligations. The estimated fair value of our derivatives in a net liability position was ~~$4.1~~$2.0 million and ~~$1.2~~$3.7 million atas of September 30, ~~2017~~2021 and December 31, ~~2016,~~2020, respectively, which included accrued interest and any nonperformance risk adjustments. If we had breached any of these provisions atas of September 30, ~~2017~~2021 or December 31, ~~2016,~~2020, we could have been required to settle our obligations under these agreements at their aggregate termination value of ~~$4.3~~$2.0 million and ~~$1.3~~$3.8 million, respectively.

CPA:18 – Global 9/30/2021 10-Q– 21

Notes to Condensed Consolidated Financial Statements (Unaudited)

Note 9. Non-Recourse ~~Mortgages and Bonds Payable~~Secured Debt, Net

AtAs of September 30, ~~2017,~~2021, the weighted-average interest rate for our total non-recourse secured debt ~~bore interest at fixed annual rates ranging from 1.6% to 5.8%~~was 3.7% (fixed-rate and ~~variable contractual annual rates ranging from 1.6% to 5.1%~~variable-rate non-recourse secured debt were 3.9% and 3.2%, respectively), with maturity dates ranging from ~~2018~~October 2021 to April 2039.

~~CPA~~^®~~:18 – Global 9/30/2017 10-Q~~– 24

~~Notes to Consolidated Financial Statements (Unaudited)~~

Financing Activity ~~During 2017~~

During the nine months ended September 30, ~~2017,~~2021, we obtained ~~four non-recourse mortgage financings totaling $23.2 million, with a weighted-average annual interest rate of 5.2% and term to maturity of 5.7 years. In addition, we refinanced two~~the following non-recourse mortgage loans ~~for a total of $17.0 million~~and construction loans in connection with ~~a weighted-average interest rate of 2.6% and term to maturity of 4.5 years. We had an additional drawdown of $3.9 million (based~~certain student housing properties (dollars in thousands):


Property Location(s)	Date Obtained	Interest Rate	Rate Type	Maturity Date	Drawdowns (a)		Loan Amount (a)
Malaga, Spain (b)	3/31/2021	2.5%	Variable	12/31/2023	$	27,261	$	27,261
Swansea, United Kingdom (c)	4/6/2021	6.4%	Variable	10/5/2023	20,288		56,577
Porto, Portugal (b) (d)	4/30/2021	2.8%	Fixed	4/30/2025	16,432		18,123
Pamplona, Spain (b)	9/30/2021	2.5%	Variable	12/31/2023	19,684		19,684
							$	121,645

___________

(a)Amounts are based on the exchange rate of the euro ator British pound sterling, as applicable, on the date of the ~~drawdown) on~~transactions.

(b)Represents a ~~senior construction-to-term~~non-recourse mortgage loan.

(c)Represents a construction loan ~~related~~for a student housing development project, which we currently expect to ~~the development of an office building located~~be completed in Eindhoven, the Netherlands. Through August 31, 2017, the loan bore an interest rate of Euro Interbank Offered Rate, or EURIBOR, plus 2.5%, except when EURIBOR was below zero, in which case, each draw bore a rate of 2.5% plus the liquidity spread of 0.7% (for a total interest rate of 3.2%). In the third quarter of ~~2017,~~2022. This loan has a one-year extension option.

(d)At closing, we drew down the first tranche of the loan ~~was converted to a seven-year term loan and now~~of $16.4 million, which bears a fixed interest rate of ~~1.8%~~2.8%. ~~Upon conversion~~The second tranche of $1.7 million is undrawn as of September 30, 2021, and would bear a variable interest rate equal to the Euro Interbank Offering Rate plus 2.5% when drawn.

Repayments

On September 3, 2021, we repaid a non-recourse mortgage loan of $83.3 million with an interest rate of 2.3% in connection with the disposition of 2 student housing operating properties encumbered by the loan ~~we drew down~~(Note 12). We recognized a net loss on ~~the remaining $22.0~~extinguishment of debt of $1.5 million ~~available balance.~~on this prepayment, which is included within Other gains and (losses) on our condensed consolidated statements of operations.

~~In addition, during~~During the nine months ended September 30, ~~2017,~~2021, we ~~drew down $17.9~~repaid 3 other non-recourse mortgage loans at maturity with an aggregate principal balance of approximately $49.1 million ~~(based on the exchange rate of the euro at the date of the drawdown) on the third-party non-recourse financing related to our build-to-suit investment in Hamburg, Germany. The loan bears~~and a ~~fixed~~weighted-average interest rate of ~~2.1% with a term~~4.1%.

CPA:18 – Global 9/30/2021 10-Q– 22

Notes to ~~maturity of seven years.~~Condensed Consolidated Financial Statements (Unaudited)

Scheduled Debt Principal Payments

Scheduled debt principal payments during the remainder of ~~2017,~~2021, each of the next four calendar years following December 31, ~~2017,~~2021, and thereafter are as follows (in thousands):


Years Ending December 31,	Total
2021 (remainder) (a)	$	48,576
2022	185,668
2023	367,777
2024	204,942
2025	342,897
Thereafter through 2039	102,393
Total principal payments	1,252,253
Unamortized deferred financing costs	(6,936)
Unamortized premium, net	2,907
Total	$	1,248,224

Years Ending December 31, Total
2017 (remainder) $ 1,765
2018 28,450
2019 7,147
2020 126,611
2021 174,007
Thereafter through 2039 935,043
1,273,023
Unamortized deferred financing costs (8,506 )
Unamortized premium, net 925
Total $ 1,265,442
___________

(a)Includes non-recourse secured debt (with a principal balance of $40.8 million as of September 30, 2021), for which, in October 2021, we extended the maturity date by one year, from October 31, 2021 to October 31, 2022.

Certain amounts in the table above are based on the applicable foreign currency exchange rate at September 30, ~~2017.~~2021.

The carrying value of our Non-recourse ~~mortgages,~~secured debt, net ~~and Bonds payable, net increased~~decreased by ~~$43.3~~$27.5 million in the aggregate from December 31, ~~2016~~2020 to September 30, ~~2017,~~2021, reflecting the impact of ~~the weakening of the U.S. dollar relative to certain foreign currencies (primarily the euro)~~exchange rate fluctuations during the same ~~period.~~period (Note 2).

Covenants

Our non-recourse mortgage loan agreements include customary financial maintenance covenants that require us to maintain certain ratios and benchmarks at the end of each quarter. Our compliance with such covenants depends on many factors that could be impacted by current or future economic conditions, including the adverse impact of the COVID-19 pandemic. Other than the breaches discussed below, we were in compliance with our covenants at September 30, 2021.

As of September 30, 2021, we were in breach of a non-recourse mortgage loan encumbering a net-leased property for non-payment of a $4.1 million scheduled payment of mortgage principal (principal balance of $54.0 million as of September 30, 2021). The lender has the right to call the loan and apply any restricted cash towards the repayment of the loan. As of the date of this Report, the lender has not enforced this right and we are in separate negotiations with the lender and the tenant for the loan and lease renewal, respectively.

As of September 30, 2021, we were in breach of a tenant occupancy covenant on 1 of our non-recourse mortgage loans (principal balance of $6.9 million as of that date) encumbering 2 properties net-leased to the same tenant. As a result of the breach, the lender has declared a “cash trap” for rents paid totaling $1.0 million, to be transferred to a reserve account with the lender. Although the tenant is current on rent, they are not currently occupying the property.

Note 10. Commitments and Contingencies

At As of September 30, ~~2017~~,2021, we were not involved in any material litigation. Various claims and lawsuits arising in the normal course of business are pending against us. The results of these proceedings are not ~~expected~~expected to have a material adverse effect on our condensed consolidated financial ~~position~~statements of operations or results of operations.

See Note 4 for unfunded construction commitments.

~~CPA~~^®:CPA:18 – Global 9/30/~~2017~~2021 10-Q– 2523

Notes to Condensed Consolidated Financial Statements (Unaudited)

Note 11. ~~Net Income~~Earnings (Loss) Per Share and Equity

Basic and Diluted ~~Income~~Earnings (Loss) Per Share

The following table presents ~~net income~~earnings (loss) per share (in thousands, except share and per share amounts):


	Three Months Ended September 30,
	2021					2020
	Basic and Diluted Weighted-Average Shares Outstanding	Allocation of Net Income		Basic and Diluted Earnings Per Share		Basic and Diluted Weighted-Average Shares Outstanding	Allocation of Net Income		Basic and Diluted Earnings Per Share
Class A common stock	120,364,095	$	27,968	$	0.23	118,715,886	$	2,607	$	0.02
Class C common stock	32,027,757	7,443		0.23		32,442,454	696		0.02
Net income attributable to CPA:18 – Global		$	35,411				$	3,303


														Nine Months Ended September 30,
	Three Months Ended September 30, 2017					Three Months Ended September 30, 2016								2021					2020
	Basic and Diluted Weighted-Average Shares Outstanding	Allocation of Net Income		Basic and Diluted Net Income Per Share		Basic and Diluted Weighted-Average Shares Outstanding	Allocation of Net Loss			Basic and Diluted Net Loss Per Share				Basic and Diluted Weighted-Average Shares Outstanding	Allocation of Net Income		Basic and Diluted Earnings Per Share		Basic and Diluted Weighted-Average Shares Outstanding	Allocation of Net Loss		Basic and Diluted Loss Per Share
Class A common stock	110,507,579	$	7,759	$	0.07	106,279,055	$	(3,083	)	$	(0.03	)	Class A common stock	119,949,052	$	29,890	$	0.25	118,389,942	$	(4,719)	$	(0.04)
Class C common stock	31,322,341	2,062		0.07		30,205,326	(998		)	(0.03		)	Class C common stock	32,103,111	7,998		0.25		32,460,383	(1,349)		(0.04)
Net income (loss) attributable to CPA^®:18 – Global		$	9,821				$	(4,081	)
Net income (loss) attributable to CPA:18 – Global													Net income (loss) attributable to CPA:18 – Global		$	37,888				$	(6,068)

Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016
Basic and Diluted Weighted-Average
Shares Outstanding Allocation of Net Income Basic and Diluted Net Income
Per Share
Basic and Diluted Weighted-Average
Shares Outstanding
Allocation of Net Loss Basic and Diluted Net Loss
Per Share
Class A common stock 109,507,006
$ 12,936
$ 0.12
105,148,891
$ (12,569 ) $ (0.12 )
Class C common stock 31,041,072
3,288
0.11
29,964,756
(3,921 ) (0.13 )
Net income (loss) attributable to CPA^®:18 – Global
$ 16,224
$ (16,490 )

The allocation of Net income (loss) attributable to ~~CPA~~^®:CPA:18 – Global is calculated based on the basic and diluted weighted-average shares outstanding for Class A and Class C common stock for each respective period. ~~For~~The Class C common stock allocation included less than $0.1 million of interest expense for both the three and nine months ended September 30, ~~2017,~~2020, related to the ~~allocation for Class A common stock excluded $0.1 million~~accretion of interest on the annual distribution and ~~$0.4 million, respectively,~~shareholder servicing fee liability. As of December 31, 2020, we have no further obligation with respect to the distribution and shareholder servicing fee as the total underwriting compensation paid in respect to the offering reached the Financial Industry Regulatory Authority limit of 10% of the gross offering proceeds. As a result, interest expense related to the accretion of ~~interest on our annual~~the distribution and shareholder servicing fee ~~liability, which is only applicable to~~no longer impacts the Class C common ~~stock (Note 3~~). For the three and nine months ended September 30, 2016, the allocation for Class A common stock excluded $0.1 million and $0.3 million, respectively, of interest expense related to the accretion of interest on our annual distribution and shareholder servicing fee liability, which is only applicable to Class C common stock (~~Note 3~~).stock.

Distributions

~~Distributions are declared at the discretion of our board of directors and are not guaranteed.~~ For the three months ended September 30, ~~2017,~~2021, our board of directors declared quarterly distributions of ~~$0.1563~~$0.0625 per share for both our Class A ~~common stock~~ and ~~$0.1384 per share for our~~ Class C common stock, which ~~was~~were paid on October ~~16, 2017~~15, 2021 to stockholders of record on ~~October 5, 2017,~~September 30, 2021, in the amount of ~~$21.6~~$9.5 million.

During the nine months ended September 30, 2017, our board of directors declared distributions in the aggregate amount of $51.3 million per share for our Class A common stock and $12.9 million per share for our Class C common stock, which equates to $0.4689 and $0.4146 per share, respectively.

~~Redemptions~~

For the three months ended September 30, 2017, the repurchase of shares of our common stock of $5.6 million pursuant to our redemption program were paid subsequent to September 30, 2017. As of September 30, 2017, the amount was recorded to Accounts payable, accrued expenses and other liabilities in the consolidated financial statements and is deemed a non-cash financing activity.

~~CPA~~^®:CPA:18 – Global 9/30/~~2017~~2021 10-Q– 2624

Notes to Condensed Consolidated Financial Statements (Unaudited)

Reclassifications Out of Accumulated Other Comprehensive Loss

The following tables present a reconciliation of changes in Accumulated other comprehensive loss by component for the periods presented (in thousands):


	Three Months Ended September 30, 2021
	Gains and (Losses) on Derivative Instruments		Foreign Currency Translation Adjustments		Total
Beginning balance	$	(1,884)	$	(29,224)	$	(31,108)
Other comprehensive loss before reclassifications	153		(13,636)		(13,483)
Amounts reclassified from accumulated other comprehensive loss to:
Interest expense	346		—		346
Other gains and (losses)	(66)		—		(66)
Net current-period other comprehensive loss	433		(13,636)		(13,203)
Net current-period other comprehensive loss attributable to noncontrolling interests	(4)		958		954
Ending balance	$	(1,455)	$	(41,902)	$	(43,357)

Three Months Ended September 30, 2017

Gains and Losses
on Derivative Instruments
Foreign Currency Translation Adjustments Total
Beginning balance $ 1,306
$ (46,389 ) $ (45,083 )
Other comprehensive income before reclassifications (2,010 ) 13,839
11,829
Amounts reclassified from accumulated other comprehensive loss to:
Interest expense 159
—
159
Other income and (expenses) (294 ) —
(294 )
Net current-period Other comprehensive income (2,145 ) 13,839
11,694
Net current-period Other comprehensive income attributable to noncontrolling interests —
(1,806 ) (1,806 )
Ending balance $ (839 ) $ (34,356 ) $ (35,195 )


	Three Months Ended September 30, 2020
	Gains and (Losses) on Derivative Instruments		Foreign Currency Translation Adjustments		Total
Beginning balance	$	(2,626)	$	(67,320)	$	(69,946)
Other comprehensive income before reclassifications	(887)		23,387		22,500
Amounts reclassified from accumulated other comprehensive loss to:
Interest expense	903		—		903
Other gains and (losses)	(417)		—		(417)
Net current-period other comprehensive income	(401)		23,387		22,986
Net current-period other comprehensive income attributable to noncontrolling interests	15		(1,862)		(1,847)
Ending balance	$	(3,012)	$	(45,795)	$	(48,807)


	Nine Months Ended September 30, 2021
	Gains and (Losses) on Derivative Instruments		Foreign Currency Translation Adjustments		Total
Beginning balance	$	(3,363)	$	(16,567)	$	(19,930)
Other comprehensive loss before reclassifications	818		(27,224)		(26,406)
Amounts reclassified from accumulated other comprehensive loss to:
Interest expense	1,273		—		1,273
Other gains and (losses)	(176)		—		(176)
Net current-period other comprehensive loss	1,915		(27,224)		(25,309)
Net current-period other comprehensive loss attributable to noncontrolling interests	(7)		1,889		1,882
Ending balance	$	(1,455)	$	(41,902)	$	(43,357)

Three Months Ended September 30, 2016
Gains and Losses
on Derivative Instruments Foreign Currency Translation Adjustments Total
Beginning balance $ 1,610
$ (51,377 ) $ (49,767 )
Other comprehensive income before reclassifications (817 ) 2,963
2,146
Amounts reclassified from accumulated other comprehensive loss to:
Interest expense 231
—
231
Other income and (expenses) (342 ) —
(342 )
Net current-period Other comprehensive income (928 ) 2,963
2,035
Net current-period Other comprehensive income attributable to noncontrolling interests —
(813 ) (813 )
Ending balance $ 682
$ (49,227 ) $ (48,545 )

~~CPA~~^®:CPA:18 – Global 9/30/~~2017~~2021 10-Q– 2725

Notes to Condensed Consolidated Financial Statements (Unaudited)


	Nine Months Ended September 30, 2020
	Gains and (Losses) on Derivative Instruments		Foreign Currency Translation Adjustments		Total
Beginning balance	$	138	$	(56,673)	$	(56,535)
Other comprehensive income before reclassifications	(3,408)		11,611		8,203
Amounts reclassified from accumulated other comprehensive loss to:
Interest expense	1,553		—		1,553
Other gains and (losses)	(1,313)		—		(1,313)
Net current-period other comprehensive income	(3,168)		11,611		8,443
Net current-period other comprehensive income attributable to noncontrolling interests	18		(733)		(715)
Ending balance	$	(3,012)	$	(45,795)	$	(48,807)

See Note 8 for additional information on our derivative activity recognized within Other comprehensive (loss) income for the periods presented.

Note 12. Property Dispositions

We may decide to dispose of a property due to a variety of circumstances, including but not limited to, vacancy, tenants electing not to renew their leases, tenant insolvency, or lease rejection in the bankruptcy process. In such cases, we assess whether we can obtain the highest value from the property by selling it, as opposed to re-leasing it. We may also sell a property when we receive an unsolicited offer or negotiate a price for an investment that is consistent with our strategy for that investment. When it is appropriate to do so, we classify the property as an asset held for sale on our condensed consolidated balance sheet.

2021— Operating Real Estate — Land, Buildings and Improvements

On September 3, 2021, we sold 2 student housing operating properties located in Cardiff and Portsmouth, United Kingdom, for total proceeds, net of selling costs, of $147.8 million (based on the exchange rate of the British pound sterling on the date of disposition) and recognized a net gain on these sales totaling $40.3 million (inclusive of $3.2 million attributable to a noncontrolling interest and income taxes totaling $0.4 million recognized upon sale). In connection with this disposition, we repaid the $83.3 million non-recourse mortgage loan encumbering the properties (Note 9). If certain rental metrics are achieved at these properties during the fourth quarter of 2021, we are entitled to additional disposition proceeds.

2020— Real Estate — Land, Buildings and Improvements

On July 22, 2020, our warehouse facility located in Freetown, Massachusetts, was disposed of through eminent domain. As a result, we received condemnation proceeds, net of selling costs, of $6.1 million, and recognized a gain on sale of $3.3 million. We repaid the $3.2 million non-recourse mortgage loan previously encumbering the property using the condemnation proceeds.

Nine Months Ended September 30, 2017

Gains and Losses
on Derivative Instruments
Foreign Currency Translation Adjustments Total
Beginning balance $ 5,587
$ (67,291 ) $ (61,704 )
Other comprehensive income before reclassifications (5,834 ) 37,534
31,700
Amounts reclassified from accumulated other comprehensive loss to:
Interest expense 561
—
561
Other income and (expenses) (1,153 ) —
(1,153 )
Net current-period Other comprehensive income (6,426 ) 37,534
31,108
Net current-period Other comprehensive income attributable to noncontrolling interests —
(4,599 ) (4,599 )
Ending balance $ (839 ) $ (34,356 ) $ (35,195 )

Nine Months Ended September 30, 2016

Gains and Losses
on Derivative Instruments
Foreign Currency Translation Adjustments Total
Beginning balance $ 5,360
$ (55,676 ) $ (50,316 )
Other comprehensive income before reclassifications (4,329 ) 8,739
4,410
Amounts reclassified from accumulated other comprehensive loss to:
Interest expense 661
—
661
Other income and (expenses) (1,010 ) —
(1,010 )
Net current-period Other comprehensive income (4,678 ) 8,739
4,061
Net current-period Other comprehensive income attributable to noncontrolling interests —
(2,290 ) (2,290 )
Ending balance $ 682
$ (49,227 ) $ (48,545 )

~~CPA~~^®:CPA:18 – Global 9/30/~~2017~~2021 10-Q– 2826

Notes to Condensed Consolidated Financial Statements (Unaudited)

Note ~~12.~~13. Segment Reporting

We operate in ~~three~~3 reportable business segments: Net Lease, Self Storage, and ~~Multi-Family.~~Other Operating Properties. Our Net Lease segment includes our investments in net-leased properties, whether they are accounted for as operating leases or direct financing leases. Our Self Storage segment is comprised of our investments in self-storage properties. Our ~~Multi-Family~~Other Operating Properties segment is comprised of our investments in ~~multi-family residential properties and student-housing developments.~~student housing operating properties. In addition, we have an All Other category that ~~includes~~is comprised of our notes receivable ~~investments (Note 1~~).investment. The following tables present a summary of comparative results and assets for these business segments (in thousands):


														Three Months Ended September 30,				Nine Months Ended September 30,
														2021		2020		2021		2020
Net Lease													Net Lease
Revenues (a)													Revenues (a)	$	32,135	$	25,943	$	90,064	$	76,548
Operating expenses													Operating expenses	(19,412)		(14,925)		(54,997)		(50,948)
Gain on sale of real estate, net													Gain on sale of real estate, net	—		3,285		—		3,285
Interest expense													Interest expense	(9,210)		(7,013)		(25,019)		(20,614)
Other gains and (losses)													Other gains and (losses)	(666)		(444)		(264)		(3,660)
Benefit from (provision for) income taxes													Benefit from (provision for) income taxes	453		(163)		1,294		(865)
Net income attributable to noncontrolling interests													Net income attributable to noncontrolling interests	(420)		(259)		(1,008)		(2,485)
Net income attributable to CPA:18 – Global													Net income attributable to CPA:18 – Global	$	2,880	$	6,424	$	10,070	$	1,261
Self Storage													Self Storage
Revenues													Revenues	$	18,806	$	15,430	$	52,214	$	45,456
Operating expenses													Operating expenses	(9,465)		(9,299)		(27,531)		(27,474)
Interest expense													Interest expense	(2,769)		(3,356)		(9,069)		(10,086)
Other gains and (losses) (b)													Other gains and (losses) (b)	(144)		(169)		(178)		(378)
Provision for income taxes													Provision for income taxes	(30)		(28)		(118)		(76)

Net income attributable to CPA:18 – Global													Net income attributable to CPA:18 – Global	$	6,398	$	2,578	$	15,318	$	7,442
Other Operating Properties													Other Operating Properties
Revenues													Revenues	$	2,501	$	1,809	$	9,143	$	6,566
Operating expenses													Operating expenses	(3,402)		(2,178)		(8,381)		(4,987)
Gain on sale of real estate, net													Gain on sale of real estate, net	40,332		—		40,332		—
Interest expense													Interest expense	(523)		(410)		(1,690)		(854)
Other gains and (losses)													Other gains and (losses)	(1,508)		2		(1,511)		21
Benefit from income taxes													Benefit from income taxes	107		1		150		53
Net (income) loss attributable to noncontrolling interests													Net (income) loss attributable to noncontrolling interests	(2,993)		81		(2,929)		111
Net income attributable to CPA:18 – Global													Net income attributable to CPA:18 – Global	$	34,514	$	(695)	$	35,114	$	910
All Other													All Other
Revenues (c)													Revenues (c)	$	—	$	—	$	—	$	1,420
Operating expenses													Operating expenses	—		(38)		(12)		(38)

Other gains and (losses)													Other gains and (losses)	—		65		—		65

Net income (loss) attributable to CPA:18 – Global													Net income (loss) attributable to CPA:18 – Global	$	—	$	27	$	(12)	$	1,447
Corporate													Corporate

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016 ^(a)			2017			2016 ^(a)
Net Lease
Revenues ^(b)	$	30,736		$	27,869		$	86,988		$	82,500
Operating expenses ^{(c) (d)}	(16,688		)	(15,448		)	(51,036		)	(46,170		)
Interest expense	(7,723		)	(7,516		)	(21,905		)	(22,096		)
Other income and (expenses), excluding interest expense	398			382			1,143			1,093
Benefit from (provision for) income taxes	2,787			(16		)	2,149			210
Loss on sale of real estate, net of tax	—			—			—			(63		)
Net income attributable to noncontrolling interests	(108		)	(607		)	(545		)	(1,441		)
Net income attributable to CPA^®:18 – Global	$	9,402		$	4,664		$	16,794		$	14,033
Self Storage
Revenues	$	14,128		$	13,079		$	41,178		$	35,785
Operating expenses ^(e)	(10,922		)	(14,106		)	(34,675		)	(44,354		)
Interest expense	(3,178		)	(2,976		)	(9,223		)	(7,971		)
Other income and (expenses), excluding interest expense ^(f)	(441		)	(69		)	(848		)	(86		)
Provision for income taxes	(44		)	(12		)	(170		)	(103		)
Net loss attributable to CPA^®:18 – Global	$	(457	)	$	(4,084	)	$	(3,738	)	$	(16,729	)
Multi-Family
Revenues	$	6,523		$	5,626		$	19,141		$	16,382
Operating expenses	(4,632		)	(4,327		)	(13,518		)	(12,375		)
Interest expense	(1,229		)	(1,221		)	(3,625		)	(3,640		)
Other income and (expenses), excluding interest expense	6			—			10			—
Benefit from (provision for) income taxes	142			(28		)	(85		)	(107		)
Net income attributable to noncontrolling interests	10			38			34			30
Net income attributable to CPA^®:18 – Global	$	820		$	88		$	1,957		$	290
All Other
Revenues	$	1,814		$	710		$	5,346		$	2,130
Operating expenses	—			—			(11		)	—
Net income attributable to CPA^®:18 – Global	$	1,814		$	710		$	5,335		$	2,130
Corporate
Unallocated Corporate Overhead ^(g)	$	438		$	(3,797	)	$	1,933		$	(10,895	)

Unallocated Corporate Overhead (d)													Unallocated Corporate Overhead (d)	$	(6,758)	$	(3,863)	$	(17,653)	$	(12,015)
Net income attributable to noncontrolling interests — Available Cash Distributions	$	(2,196	)	$	(1,662	)	$	(6,057	)	$	(5,319	)	Net income attributable to noncontrolling interests — Available Cash Distributions	$	(1,623)	$	(1,168)	$	(4,949)	$	(5,113)
Total Company													Total Company
Revenues	$	53,201		$	47,284		$	152,653		$	136,797
Revenues (a) (c)													Revenues (a) (c)	$	53,442	$	43,182	$	151,421	$	129,990
Operating expenses	(37,103		)	(38,093		)	(113,210		)	(115,606		)	Operating expenses	(37,895)		(31,478)		(106,471)		(98,288)
Gain on sale of real estate, net													Gain on sale of real estate, net	40,332		3,285		40,332		3,285
Interest expense	(12,430		)	(11,025		)	(35,673		)	(31,705		)	Interest expense	(12,558)		(10,815)		(35,898)		(31,658)
Other income and (expenses), excluding interest expense	5,622			87			17,390			1,120
Benefit from (provision for) income taxes	2,825			(103		)	1,632			(303		)
Loss on sale of real estate, net of tax	—			—			—			(63		)
Other gains and (losses) (b) (d)													Other gains and (losses) (b) (d)	(2,764)		895		(2,828)		(326)
(Provision for) benefit from income taxes													(Provision for) benefit from income taxes	(110)		(420)		218		(1,584)
Net income attributable to noncontrolling interests	(2,294		)	(2,231		)	(6,568		)	(6,730		)	Net income attributable to noncontrolling interests	(5,036)		(1,346)		(8,886)		(7,487)
Net income (loss) attributable to CPA^®:18 – Global	$	9,821		$	(4,081	)	$	16,224		$	(16,490	)
Net income (loss) attributable to CPA:18 – Global													Net income (loss) attributable to CPA:18 – Global	$	35,411	$	3,303	$	37,888	$	(6,068)

~~CPA~~^®:CPA:18 – Global 9/30/~~2017~~2021 10-Q– 2927

Notes to Condensed Consolidated Financial Statements (Unaudited)


						Total Assets
	Total Assets					September 30, 2021		December 31, 2020
	September 30, 2017		December 31, 2016
Net Lease ^(h)	$	1,564,373	$	1,453,148
Net Lease					Net Lease	$	1,658,818	$	1,688,259
Self Storage	403,696		410,781		Self Storage	343,295		345,936
Multi-Family ^(h)	274,931		230,509
Other Operating Properties					Other Operating Properties	151,292		258,017
All Other	66,909		66,936		All Other	28,000		28,009
Corporate	40,616		48,072		Corporate	53,244		38,697
Total Company	$	2,350,525	$	2,209,446	Total Company	$	2,234,649	$	2,358,918

__________


~~(a)~~	~~Amounts for the three and nine months ended September 30, 2016 are presented to conform to the three reportable business segment presentation for the current period.~~


~~(b)~~	We recognized straight-line rent adjustments of $1.6 million and $1.0 million during the three months ended September 30, 2017 and 2016, respectively, and $3.7 million and $3.2 million for the nine months ended September 30, 2017 and 2016, respectively, which increased Lease revenues within our consolidated financial statements for each period.

~~(c)~~

In April 2016, the Croatian government passed a special law assisting the restructuring of companies considered of systematic significance in Croatia. This law directly impacts one of our tenants, which is currently experiencing financial distress and received a credit downgrade from both Standard & Poor’s and Moody’s. As a result of the financial difficulties and the uncertainty regarding future rent collections from the tenant, we recorded bad debt expense of $2.0 million during the nine months ended September 30, 2017.


~~(d)~~	As a result of financial difficulties and uncertainty regarding future rent collections from a tenant in Stavanger, Norway, we recorded bad debt expense of $0.1 million and $1.2 million during the three and nine months ended September 30, 2017, respectively.


~~(e)~~	~~Includes acquisition expenses incurred in connection with self-storage transactions. Since adopting ASU 2017-01 as of January 1, 2017 (Note 2), no acquisitions have been deemed business combinations.~~


~~(f)~~	~~Includes Equity in losses of equity method investment in real estate.~~


~~(g)~~	Included in unallocated corporate overhead are asset management fees and general and administrative expenses. These expenses are calculated and reported at the portfolio level and not evaluated as part of any segment’s operating performance.

~~(h)~~

On January 31, 2017, construction commenced on one of our previously acquired build-to-suit investments located in Cardiff, United Kingdom. Upon commencement of construction, the net investment was reclassified to Real estate under construction from Net investments in direct financing leases (~~Note 4). As the build-to-suit is intended to be a student-housing development, we reclassified the net investment to Multi-Family from Net Lease during 2017.~~

(a)The three months ended September 30, 2021 and 2020 include straight-line rent adjustments of $0.5 million and $0.2 million, respectively, and $2.4 million and $1.2 million for the nine months ended September 30, 2021 and 2020, respectively. Straight-line lease revenue is included within Lease revenues — net-leased within our condensed consolidated financial statements.

(b)Includes Losses from equity method investment in real estate for the three and nine months ended September 30, 2020. In December 2020, we sold our sole equity method investment.

(c)On July 28, 2020, we were notified that the borrower had defaulted on the mortgage loan senior to our mezzanine tranche, and since that date we have not recognized interest income (Note 5).

(d)Included in unallocated corporate overhead are expenses and other gains and (losses) that are calculated and reported at the portfolio level and not evaluated as part of any segment’s operating performance. Such items include asset management fees, general and administrative expenses, and gains and losses on foreign currency transactions and derivative instruments. Asset management fees totaled $3.2 million and $3.0 million for the three months ended September 30, 2021 and 2020, respectively, and $9.5 million and $8.9 million for the nine months ended September 30, 2021 and 2020, respectively (Note 3).

Note ~~13.~~14. Subsequent Events

OnDisposition

In October ~~11, 2017,~~2021, we sold a retail facility in Zadar, Croatia, for gross proceeds of $14.4 million. In connection with the ~~student-housing property located in Reading, United Kingdom for a purchase price of $63.5~~disposition, we repaid the $8.3 million ~~(based~~non-recourse mortgage loan encumbering the property. Amounts are based on the exchange rate of the ~~British pound sterling at~~euro on the date of ~~sale) with an estimated gain on~~the transaction. This property was classified as held for sale as of ~~$8.3 million.~~

~~On October 13, 2017, we repaid the remaining $19.5 million of loans outstanding to WPC, including accrued interest~~September 30, 2021 (~~Note 3~~Note 4).

~~CPA~~^®:CPA:18 – Global 9/30/~~2017~~2021 10-Q– 3028

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

Management’s Discussion and Analysis of Financial Condition and Results of Operations 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. Management’s Discussion and Analysis of Financial Condition and Results of Operations 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 Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the ~~2016~~2020 Annual Report and subsequent reports filed under the Securities Exchange Act of ~~1934.~~

~~Business Overview~~

~~As described in more detail in~~1934, as amended (“the Exchange Act”). Refer to Item 1 of the ~~2016~~2020 Annual Report ~~we are~~for a publicly owned, non-traded REIT that invests primarily in commercial properties leased to companies domestically and internationally. As opportunities arise, we also make other types of real estate-related investments, which includes our self-storage and multi-family 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 naturedescription 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, sales of properties, and foreign currency exchange rates. We commenced operations in May 2013 and are managed by our 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 99.97% of the interests in, the Operating Partnership. The remaining interest in the Operating Partnership is held by a subsidiary of WPC.business.

Significant Developments

~~Non-Traded Retail Fundraising Platform Closure~~Evaluation of Possible Liquidity Alternatives

On ~~June 15, 2017, WPC’s board~~August 31, 2021, we reported that our independent directors intended to begin the process of evaluating possible liquidity alternatives for our stockholders, which included an unsolicited preliminary proposal for a potential business combination transaction received from affiliates of our Advisor. The independent directors ~~approved~~have formed a plan to exit all non-traded retail fundraising activities carried out by its wholly-owned broker-dealer subsidiary, Carey Financial, effective June 30, 2017. As a result, we now pay the annual distributionspecial committee and ~~shareholder servicing fees related to our Class C common stock directly~~retained advisors. There can be no assurance as to the ~~selected dealers, rather than through Carey Financial, beginning~~form or timing of any liquidity alternative or that any alternative may be pursued at all for the foreseeable future. We do not intend to discuss the evaluation process unless and until a particular alternative is selected.

COVID-19

Our Advisor continues to actively engage in discussions with our tenants and the ~~fees for~~third-party managers of our operating properties regarding the impact of the COVID-19 pandemic on their business operations, liquidity, and financial position. Through the date of this Report, we received from tenants approximately 94% of contractual base rent that was due in the third quarter of ~~2017. There is no change in the amount~~2021 (based on contractual minimum annualized base rent (“ABR”) as of ~~distribution~~June 30, 2021) and ~~shareholder servicing fees that we incur.~~

~~Hurricane Harvey and Hurricane Irma~~

~~During~~96% of contractual rents due at our self-storage properties during the three months ended September 30, ~~2017, certain~~2021. Given the significant uncertainty around the duration and severity of the impact of the COVID-19 pandemic, we are unable to predict the impact it will have on our tenants’ continued ability to pay rent. Therefore, information provided regarding rent collections for the third quarter of 2021 should not serve as an indication of expected future rent collections.

As of September 30, 2021, our debt and interest obligations due within one year totaled $241.0 million, and we expect to fund capital commitments of $65.1 million in the next year, primarily for our three student housing development projects. We believe that we have sufficient liquidity to meet our liquidity and capital resource requirements, primarily through available cash and cash equivalents, cash received under net lease and operating lease agreements (which includes nine student housing properties placed into service during 2020 and 2021), and undrawn capacity under our construction loans. If necessary, we are able to borrow up to $50.0 million under an unsecured revolving line of credit with WPC (scheduled to mature on March 31, 2022), which had no outstanding balance as of September 30, 2021 (Note 3). Additional sources of liquidity, if necessary, includes leveraging our unleveraged properties (which had an aggregate carrying value of $126.3 million as of September 30, 2021), refinancing existing debt obligations, and asset sales. To help us preserve cash, since April 1, 2020, at our option our Advisor has received all asset management fees in shares of our ~~properties~~Class A common stock (Note 3). In addition, in order to enable us to retain cash and preserve financial flexibility, (i) since the second quarter of 2020, our distributions declared for both Class A and Class C common stock were ~~damaged~~reduced from previous levels and (ii) since August 2020, we have generally limited the amount of cash available for our redemption program to the amount reinvested by ~~Hurricane Harvey and Hurricane Irma. As a result, we evaluated such properties to determine if any losses should be recognized. As a result, we recognized a loss of $0.1 million on one of~~stockholders in our self-storage properties in Houston, Texas, which represents the estimated insurance deductible to be paid. After the payment of the deductible, we currently expect that all other costs will be covered by insurance.DRIP.

~~CPA~~^®~~:18 – Global 9/30/2017 10-Q~~– 31

Net Asset ~~Value~~Values

Our ~~Advisor calculated our quarterly~~ NAVs as of June 30, ~~2017 in accordance with our valuation policies, and on September 12, 2017, we announced that our Advisor had determined that the quarterly NAV~~2021 were $8.91 for both our Class A and Class C common stock was $8.24, which was 4.3% higher than our NAVs at March 31, 2017. Our Advisor calculated our NAVs by relying in part on rolling update appraisals covering approximately 25% of our real estate portfolio each quarter as of September 30, 2016, December 31, 2016, March 31, 2017 and June 30, 2017 and updated estimates of the fair market value of our debt as of June 30, 2017, all provided by an independent third party, as described below. Utilizing the updated appraisals, our Advisor then adjusted the resulting net equity of our real estate portfolio for certain items. Our NAVs are based on a number of variables, including individual tenant credits, lease terms, lending credit spreads, foreign currency exchange rates, share counts, tenant defaults, and development projects that are not yet generating income, among others. We do not control all of these variables and, as such, cannot predict how they will change in the future. The majority of our costs associated with development projects (which are not yet generating income) are included in Real estate under construction in our consolidated financial statements and totaled approximately $102.4 million as of September 30, 2017. For additional information regarding the calculation of our quarterly NAVs at June 30, 2017, pleasestock. Please see our Current Report on Form 8-K dated September ~~12, 2017.~~10, 2021 and the 2020 Annual Report for additional information regarding the calculation of our NAVs. Our Advisor currently intends to determine our quarterly NAVs as of September 30, ~~2017~~2021 during the fourth quarter of ~~2017.~~2021.

Beginning with our quarterly NAVs as of September 30, 2016, we obtain a rolling appraisal of the fair market value of our real estate portfolio, whereby approximately 25% of our real estate assets (based on asset value) is appraised each quarter, and we obtain estimates of the fair market value of our debt as of the respective balance sheet date, both to be provided by an independent third party. Since the quarterly NAV estimates are not based on a full appraisal of the entire portfolio, to the extent any estimated NAV per share adjustments are within +/- 1% of the previously disclosed NAV per share, the quarterly NAV per share will remain unchanged. We monitor properties not appraised during the quarter to identify ones that may have experienced a significant event and obtain updated third-party appraisals for such properties.

CPA:18 – Global 9/30/2021 10-Q– 29

The accrued distribution and shareholder servicing fee payable has been valued using a hypothetical liquidation value and, as a result, the NAVs do not reflect any obligation to pay future distribution and shareholder servicing fees. At September 30, 2017, the liability balance for the distribution and shareholder servicing fee was $6.1 million.Financial Highlights

~~Acquisition and Financing Activity~~

During the nine months ended September 30, ~~2017,~~2021, we ~~acquired~~completed the following (as further described in the condensed consolidated financial statements).

Projects Placed into Service

During the nine months ended September 30, 2021, we completed and placed into service four student housing properties totaling $172.2 million of capitalized costs. Three of the properties are located in Spain and one ~~new investment for an aggregate amount~~is located in Portugal. All four of ~~$8.2 million and purchased a vacant parcel of land for a self-storage development project as part of our joint venture~~the properties are subject to net lease agreements with a third party (which includes fixed minimum rents), and are included in Real estate — Land, buildings and improvements in the condensed consolidated balance sheets.

Disposition Activity

On September 3, 2021, we sold two student housing operating properties located in Cardiff and Portsmouth, United Kingdom, for ~~$5.1~~total proceeds, net of selling costs, of $147.8 million (based on the exchange rate of the Canadian dollar at the date of acquisition). Additionally, we made our final payment to the developer for a build-to-suit project located in Eindhoven, the Netherlands for $18.7 million, which is based on the exchange rate of the euroBritish pound sterling on the date of disposition), and recognized a net gain on these sales totaling $40.3 million (inclusive of $3.2 million attributable to a noncontrolling interest) (Note 12). In connection with this disposition, we prepaid a non-recourse mortgage loan of $83.3 million with an interest rate of 2.3% encumbering the ~~acquisition.~~disposed properties (Note 9).

Financing Activity

During the nine months ended September 30, ~~2017,~~2021, we obtained ~~mortgage financing totaling $23.2 million and refinanced~~ non-recourse mortgage loans and construction loans in connection with four student housing properties totaling ~~$17.0 million. In addition, we had draws of $25.9~~approximately $121.6 million, ~~and $17.9~~with drawdowns totaling approximately $83.7 million ~~(based~~during the period (amounts are based on the applicable exchange ~~rate of the euro at~~rates on the date of the ~~drawdown) on third-party non-recourse financings related to two of our build-to-suit investments~~transactions) (Note 9).

Mortgage Loan Repayments

During the nine months ended September 30, ~~2017, we borrowed $11.2 million from WPC and repaid $19.7 million (Note 3). Subsequent to September 30, 2017,~~2021, we repaid ~~the remaining $19.5~~three non-recourse mortgage loans at maturity with an aggregate principal balance of approximately $49.1 million and a weighted-average interest rate of ~~loans outstanding to WPC, including accrued interest~~4.1% (Note 139).

Consolidated Results

(in thousands)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Total revenues	$	53,442	$	43,182	$	151,421	$	129,990
Net income (loss) attributable to CPA:18 – Global	35,411		3,303		37,888		(6,068)

Cash distributions paid	9,496		8,809		28,413		54,398
Distributions declared (a)	9,480		8,869		28,443		40,522

Net cash provided by operating activities					64,789		64,637
Net cash provided by (used in) investing activities					47,632		(131,689)
Net cash used in financing activities					(106,973)		(24,504)

Supplemental financial measures (b):
FFO attributable to CPA:18 – Global	13,860		14,174		47,013		31,178
MFFO attributable to CPA:18 – Global	17,129		13,215		49,087		43,966
Adjusted MFFO attributable to CPA:18 – Global	16,963		13,016		46,527		44,163

__________

~~CPA~~^®:CPA:18 – Global 9/30/~~2017~~2021 10-Q– 3230

(a)Quarterly distributions declared are generally paid in the subsequent quarter. Since the second quarter of 2020, our distributions declared for both Class A and Class C common stock were reduced from previous levels to enable us to retain cash and preserve financial flexibility.

(b)We consider the performance metrics listed above, including Funds from operations (“FFO”), Modified funds from operations (“MFFO”), and Adjusted modified funds from operations (“Adjusted MFFO”), which are supplemental measures that are not defined by GAAP (“non-GAAP measures”), to be important measures in the evaluation of our operating performance. See Supplemental Financial Measures below for our definitions of these non-GAAP measures and reconciliations to their most directly comparable GAAP measures.

Revenues

Total revenues increased for the three and nine months ended September 30, 2021 as compared to the same periods in 2020, primarily due to higher revenues from self-storage operating properties (driven by an increase in occupancy and unit rates) and the positive impact of our student housing properties placed into service during 2020 and 2021, as well as the write-off of straight-line rent during the nine months ended September 30, 2020 (Note 2). In addition, for the three months ended September 30, 2021 as compared to the same period in 2020, higher rent was collected as businesses recover from the initial effects of the COVID-19 pandemic, while for the nine months ended September 30, 2021 as compared to the same period in 2020, uncollected rent was higher due to the adverse effect of the COVID-19 pandemic.

Net Income (Loss) Attributable to CPA:18 – Global

Net income (loss) attributable to CPA:18 – Global increased for the three and nine months ended September 30, 2021 as compared to the same periods in 2020, primarily due to a higher gain on sale of real estate (Note 12), higher revenues from self-storage operating properties and the positive impact of the nine student housing properties placed into service during 2020 and 2021, as well as the write-off of straight-line rent (Note 2) and the allowance for credit losses (Note 5) recorded during the nine months ended September 30, 2020, partially offset by higher interest expense (primarily due to the impact of mortgage financings obtained on five of the student housing properties placed into service during 2020).

MFFO and Adjusted MFFO Attributable to CPA:18 – Global

MFFO and Adjusted MFFO increased for the three and nine months ended September 30, 2021 as compared to the same periods in 2020, primarily due to higher revenues from self-storage operating properties and the positive impact of our student housing properties placed into service during 2020 and 2021, partially offset by higher interest expense. In addition, for the three months ended September 30, 2021 as compared to the same period in 2020, higher rent was collected as businesses recover from the initial effects of the COVID-19 pandemic, while for the nine months ended September 30, 2021 as compared to the same period in 2020, uncollected rent was higher due to the adverse effect of the COVID-19 pandemic.

CPA:18 – Global 9/30/2021 10-Q– 31

Portfolio Overview

We ~~intend to continue to acquire~~hold a diversified portfolio of income-producing commercial real estate properties and other real estate-related assets. ~~We expect to make these investments both domestically~~In addition, our portfolio includes self-storage and ~~internationally.~~student housing properties for the periods presented below. Portfolio information is provided on a pro rata basis, unless otherwise noted below, to better illustrate the economic impact of our various ~~net-leased,~~ jointly owned net-leased and operating investments. See Terms and Definitions below for a description of pro rata amounts.

Portfolio Summary


	September 30, 2021			December 31, 2020
Number of net-leased properties	54			50
Number of operating properties (a)	66			68
Number of development projects	3			7
Number of tenants (net-leased properties)	66			65
Total portfolio square footage (in thousands)	15,657			15,400
Occupancy (net-leased properties)	98.7		%	98.6		%


Weighted-average lease term (net-leased properties in years)	10.1			9.5
Number of countries	11			11
Total assets (consolidated basis in thousands)	$	2,234,649		$	2,358,918
Net investments in real estate (consolidated basis in thousands)	1,995,878			2,124,244
Debt, net — pro rata (in thousands)	1,134,189			1,193,322

September 30, 2017 December 31, 2016
Number of net-leased properties ^(a)
59
59
Number of operating properties ^(b)
78
76
Number of tenants ^(a)
99
103
Total square footage (in thousands) 16,838
16,259
Occupancy — Single-tenant 99.7 % 100.0 %
Occupancy — Multi-tenant 93.4 % 98.4 %
Occupancy — Self-storage 91.6 % 91.0 %
Occupancy — Multi-family 92.9 % 93.9 %
Weighted-average lease term — Single-tenant properties (in years)
10.8
10.8
Weighted-average lease term — Multi-tenant properties (in years) 7.1
7.1
Number of countries 11
11
Total assets (consolidated basis in thousands) $ 2,350,525
$ 2,209,446
Net investments in real estate (consolidated basis in thousands) ^(c)
2,082,135
1,953,153
Debt, net —pro rata (in thousands)
1,173,921
1,066,603

Nine Months Ended September 30,
(dollars in thousands, except exchange rate) 2017 2016
Acquisition volume — consolidated ^{(d) (e)}
$ 49,368
$ 141,306
Acquisition volume —pro rata ^{(e) (f)}
66,187
156,840
Financing obtained — consolidated 84,068
136,206
Financing obtained —pro rata ^(f)
89,351
145,795
Average U.S. dollar/euro exchange rate 1.1130
1.1161
Average U.S. dollar/Norwegian krone exchange rate 0.1205
0.1190
Average U.S. dollar/British pound sterling exchange rate 1.2751
1.3939
Change in the U.S. CPI ^(g)
2.2 % 2.1 %
Change in the Harmonized Index of Consumer Prices ^(g)
0.8 % 0.4 %
Change in the Norwegian CPI ^(g)
1.4 % 3.2 %


	Nine Months Ended September 30,
(dollars in thousands, except exchange rates)	2021		2020


Projects placed into service — consolidated (b)	$	172,181	$	150,733
Financing obtained — consolidated	107,778		54,193
Financing obtained — pro rata	103,451		49,489
Average U.S. dollar/euro exchange rate	1.1961		1.1237
Average U.S. dollar/Norwegian krone exchange rate	0.1169		0.1051
Average U.S. dollar/British pound sterling exchange rate	1.3845		1.2711

__________


~~(a)~~	Represents our single-tenant and multi-tenant properties as well as our build-to-suit projects within our net-leased portfolio and, accordingly, excludes all operating properties. We consider a property to be multi-tenant if it does not have a single tenant that comprises more than 75% of the contractual minimum ABR for the property. See Terms and Definitions below for a description of ABR.


~~(b)~~	At ~~September 30, 2017~~, our operating portfolio consisted of 69 self-storage properties and nine multi-family properties, all of which are managed by third parties. Our operating portfolio also includes self-storage and multi-family build-to-suit projects.


~~(c)~~	In the second quarter of 2017, we reclassified certain line items in our consolidated balance sheets. As a result, Net investments in real estate as of December 31, 2016 has been revised to conform to the current period presentation (~~Note 2~~).


~~(d)~~	Includes build-to-suit transactions including related budget amendments, which are reflected as the total commitment for the build-to-suit funding, and excludes investments in unconsolidated joint ventures.


~~(e)~~	~~Includes acquisition-related expenses, which were included in Acquisition expenses in the consolidated financial statements.~~

(a)As of September 30, 2021, our operating portfolio consisted of 65 self-storage properties and one student housing operating property. As of December 31, 2020, our operating portfolio consisted of 65 self-storage properties and three student housing operating properties.

(b)Comprised of student housing development properties placed into service (N ote 4). During the nine months ended September 30, 2021, we completed and placed into service four student housing properties, all of which are subject to net lease agreements upon completion. During the nine months ended September 30, 2020, we completed and placed into service three student housing properties, two of which are subject to net lease agreements upon completion.

~~CPA~~^®:CPA:18 – Global 9/30/~~2017~~2021 10-Q– 3332

The tables below present information about our portfolio on a pro rata basis as of and for the nine months ended September 30, 2021. See Terms and Definitions below for a description of Pro Rata Metrics, stabilized net operating income (“Stabilized NOI”), and ABR.


~~(f)~~	~~Includes investments in unconsolidated joint ventures, which include our equity investment in real estate (Note 4~~).


~~(g)~~	~~Many of our lease agreements include contractual increases indexed to changes in the U.S. Consumer Price Index, or U.S. CPI, or similar indices in the jurisdictions where the properties are located.~~

Portfolio Diversification by Property Type

(dollars in thousands)


Property Type	Stabilized NOI (a)		Percent
Net-Leased
Office	$	31,351	33	%
Warehouse	9,917		10	%
Industrial	7,124		8	%
Retail	6,724		7	%
Hospitality	3,076		3	%
Residential	2,856		3	%
Net-Leased Total	61,048		64	%

Operating
Self Storage	33,590		35	%
Other operating properties	922		1	%
Operating Total	34,512		36	%
Total	$	95,560	100	%

__________

(a)For the nine months ended September 30, 2021, we did not recognize approximately $8.3 million of contractual base rent that was not collected due to the adverse impact of the COVID-19 pandemic (Note 2), which reduced Stabilized NOI for certain tenants.

CPA:18 – Global 9/30/2021 10-Q– 33

Portfolio Diversification by Geography

(dollars in thousands)


Region	Stabilized NOI (a)		Percent
United States
South	$	26,732	28	%
Midwest	18,610		20	%
West	11,443		12	%
East	7,709		8	%
U.S. Total	64,494		68	%

International
Norway	8,684		9	%
The Netherlands	7,071		7	%
Poland	3,414		4	%
Croatia	2,853		3	%
Spain	2,750		3	%
Germany	2,173		2	%
Mauritius	2,048		2	%
Slovakia	1,967		2	%
Portugal	106		—	%
International Total	31,066		32	%
Total	$	95,560	100	%

__________

Top Ten Tenants by Total Stabilized NOI

(dollars in thousands)


Tenant/Lease Guarantor (a)	Property Type	Tenant Industry	Location	Stabilized NOI		Percent
Rabobank Groep NV (b)	Office	Banking	Eindhoven, Netherlands	$	4,775	5	%
Sweetheart Cup Company, Inc.	Warehouse	Containers, Packaging and Glass	University Park, Illinois	4,651		5	%
Bank Pekao S.A. (b)	Office	Banking	Warsaw, Poland	3,414		4	%
Siemens AS (b)	Office	Capital Equipment	Oslo, Norway	3,223		3	%
State Farm Automobile Co.	Office	Insurance	Austin, Texas	2,991		3	%
Brookfield Strategic Real Estate Partners (b)	Residential	Residential	Various Spain and Portugal	2,856		3	%
State of Iowa Board of Regents	Office	Sovereign and Public Finance	Coralville and Iowa City, Iowa	2,820		3	%
Orbital ATK, Inc.	Office	Metals and Mining	Plymouth, Minnesota	2,706		3	%
COOP Ost AS (b)	Retail	Grocery	Oslo, Norway	2,664		3	%
Belk, Inc.	Warehouse	Retail	Jonesville, South Carolina	2,498		3	%
Total				$	32,598	35	%

__________

CPA:18 – Global 9/30/2021 10-Q– 34

(a)For the nine months ended September 30, 2021 we did not recognize $7.9 million of contractual base rent that was not collected from two former top ten tenants (by Stabilized NOI), which have been adversely impacted by the COVID-19 pandemic (Note 2). At September 30, 2021, ABR for these two tenants totaled $11.4 million.

(b)Stabilized NOI amounts for these properties are subject to fluctuations in foreign currency exchange rates.

Net-Leased Portfolio

The tables below represent information about our net-leased portfolio on a pro rata basis and, accordingly, exclude all operating properties at as of September 30, ~~2017~~.2021. See Terms and Definitions below for a description of ~~pro rata metrics~~Pro Rata Metrics, Stabilized NOI and ABR.

~~Top Ten Tenants by ABR~~

~~(dollars in thousands)~~

Tenant/Lease Guarantor Property Type Tenant Industry Location ABR Percent
Rabobank Groep NV ^(a)
Office Banking Eindhoven, Netherlands $ 5,988
6 %
Sweetheart Cup Company, Inc. Warehouse Containers, Packaging, and Glass University Park, Illinois 5,646
6 %
Konzum d.d. ^{(a) (b)}
Retail Grocery Split, Zadar, Zagreb (3), Croatia 5,355
6 %
Albion Resorts ^(a)
Hotel Hotel, Gaming, and Leisure Albion, Mauritius 5,162
6 %
Siemens AS ^(a)
Office Capital Equipment Oslo, Norway 4,774
5 %
Bank Pekao S.A. ^(a)
Office Banking Warsaw, Poland 4,453
5 %
COOP Ost AS ^(a)
Retail Grocery Oslo, Norway 3,972
4 %
State Farm Automobile Co. Office Insurance Austin, Texas 3,766
4 %
Royal Vopak NV ^(a)
Office Oil and Gas Rotterdam, Netherlands 3,691
4 %
Board of Regents, State of Iowa Office Sovereign and Public Finance Coralville and Iowa City, Iowa 3,512
4 %
Total $ 46,319
50 %

~~__________~~


~~(a)~~	~~ABR amounts are subject to fluctuations in foreign currency exchange rates.~~

~~(b)~~

In April 2016, the Croatian government passed a special law assisting the restructuring of companies considered of systematic significance in Croatia. This law directly impacts Konzum d.d., which is currently experiencing financial distress and received a credit downgrade from both Standard & Poor’s and Moody’s. As a result of the financial difficulties and the uncertainty regarding future rent collections from the tenant, we recorded bad debt expense of $2.0 million during the nine months ended September 30, 2017.

~~CPA~~^®~~:18 – Global 9/30/2017 10-Q~~– 34

~~Portfolio Diversification by Geography~~

~~(dollars in thousands)~~

Region ABR
Percent
United States
Midwest $ 22,376
24 %
South 11,615
12 %
East 3,421
4 %
West 420
1 %
U.S. Total 37,832
41 %

International
The Netherlands 15,122
16 %
Norway 13,582
14 %
Germany 5,588
6 %
Croatia 5,355
6 %
Mauritius 5,162
5 %
Poland 4,522
5 %
United Kingdom 3,538
4 %
Slovakia 2,476
3 %
International Total 55,345
59 %
Total $ 93,177
100 %

~~Portfolio Diversification by Property Type~~

~~(dollars in thousands)~~

Property Type ABR Percent
Office $ 46,894
50 %
Industrial 13,171
14 %
Warehouse 12,193
13 %
Retail 11,752
13 %
Hotel 9,167
10 %
Total $ 93,177
100 %

~~CPA~~^®~~:18 – Global 9/30/2017 10-Q~~– 35

Portfolio Diversification by Tenant Industry

(dollars in thousands)


Industry Type	ABR		Percent		Industry Type	ABR		Percent
Residential					Residential	$	14,130	13	%
Hotel and Leisure					Hotel and Leisure	13,401		13	%
Banking	$	10,441	11	%	Banking	11,233		11	%
Grocery	9,328		10	%	Grocery	7,316		7	%
Hotel, Gaming, and Leisure	9,209		10	%
Sovereign and Public Finance	7,175		8	%
Containers, Packaging, and Glass	5,646		6	%	Containers, Packaging, and Glass	6,213		6	%
Capital Equipment	5,559		6	%	Capital Equipment	5,394		5	%
Retail Stores	5,150		6	%
Insurance	4,666		5	%	Insurance	5,047		5	%
Utilities: Electric	4,078		4	%	Utilities: Electric	4,403		4	%
Retail					Retail	3,907		4	%
Metals and Mining					Metals and Mining	3,763		4	%
Sovereign and Public Finance					Sovereign and Public Finance	3,761		4	%
High Tech Industries					High Tech Industries	3,627		3	%
Advertising, Printing, and Publishing					Advertising, Printing, and Publishing	3,309		3	%
Business Services					Business Services	3,220		3	%
Oil and Gas	3,879		4	%	Oil and Gas	2,877		3	%
Business Services	3,406		4	%
Metals and Mining	3,327		4	%
High Tech Industries	3,295		4	%
Media: Advertising, Printing, and Publishing	3,259		3	%
Healthcare and Pharmaceutical	2,533		3	%
Consumer Services	2,118		2	%
Healthcare and Pharmaceuticals					Healthcare and Pharmaceuticals	2,803		3	%
Automotive	1,988		2	%	Automotive	2,073		2	%
Construction and Building	1,762		2	%	Construction and Building	1,583		2	%
Non-Durable Consumer Goods	1,265		1	%	Non-Durable Consumer Goods	1,278		1	%
Cargo Transportation					Cargo Transportation	1,130		1	%
Telecommunications	1,039		1	%	Telecommunications	1,123		1	%
Wholesale					Wholesale	1,091		1	%
Electricity	1,027		1	%	Electricity	1,088		1	%
Wholesale	1,007		1	%
Cargo Transportation	930		1	%
Other ^(a)	1,090		1	%	Other (a)	399		—	%
Total	$	93,177	100	%	Total	$	104,169	100	%

__________


~~(a)~~	~~Includes ABR from tenants in the following industries: durable consumer goods and environmental industries.~~

(a)Includes ABR from tenants in the durable consumer goods and consumer services industries.

~~CPA~~^®:CPA:18 – Global 9/30/~~2017~~2021 10-Q– 3635

Lease Expirations

(dollars in thousands)


Year of Lease Expiration ^{(a) (b)}	Number of Leases Expiring	ABR		Percent
Remaining 2017	2	$	100	—	%
2018	6	419		—	%
2019	6	1,006		1	%
2020	7	1,274		1	%
2021	6	1,360		2	%
Year of Lease Expiration (a)						Year of Lease Expiration (a)	Number of Leases Expiring	ABR		Percent
Remaining 2021						Remaining 2021	1	$	2	—	%
2022	8	2,119		2	%	2022	1	11		—	%
2023	13	15,235		16	%	2023	12	15,215		15	%
2024	10	5,081		6	%	2024	14	4,992		5	%
2025	9	7,106		8	%	2025	8	5,660		5	%
2026	8	6,831		7	%	2026	7	8,181		8	%
2027	8	6,196		7	%	2027	2	2,496		2	%
2028	4	5,210		6	%	2028	4	6,202		6	%
2029	5	9,583		10	%	2029	4	9,457		9	%
2030	6	4,372		5	%	2030	3	4,656		4	%
Thereafter	18	27,285		29	%
2031						2031	4	5,496		5	%
2032						2032	5	9,352		9	%
2033						2033	—	—		—	%
2034						2034	6	5,656		5	%
Thereafter (>2034)						Thereafter (>2034)	8	26,793		27	%
Total	116	$	93,177	100	%	Total	79	$	104,169	100	%

__________


~~(a)~~	~~Assumes tenant does not exercise renewal option.~~


~~(b)~~	~~These maturities also include our multi-tenant properties, which generally have a shorter duration than our single-tenant properties, and on a combined basis represent pro rata ABR of $3.5 million.~~

(a)Assumes tenant does not exercise renewal option.

Lease Composition and Leasing Activities

Substantially all of our leases provide for either scheduled rent increases, periodic rent adjustments based on formulas indexed to changes in the CPI or similar indices, or percentage rents. As of September 30, 2021, approximately 45.4% of our leases (based on ABR) provided for adjustments based on formulas indexed to changes in the U.S. CPI (or similar indices for the jurisdiction in which the property is located), some of which are subject to caps and/or floors. In addition, 41.0% of our leases (based on ABR) have fixed rent adjustments, for a scheduled average ABR increase of 1.8% over the next 12 months. Lease revenues from our international investments are subject to exchange rate fluctuations, primarily from the euro. We recognize rents from percentage rents as reported by the lessees, which is after the level of sales requiring a rental payment to us is reached. Percentage rents are insignificant for the periods presented.

In September 2021, we restructured the leases with a tenant in two net lease hotel properties located in Germany. Certain rents due from 2020 through 2022 have been deferred, to be paid in equal installments of approximately $2.0 million annually (based on the exchange rate of the euro as of September 30, 2021) from 2023 through 2027, in addition to base rent due. Deferred rent will be recognized as collected. Rents due from 2020 through 2021 totaling approximately $5.4 million (based on the exchange rate of the euro as of September 30, 2021) were waived in connection with this restructuring. However, such rents were not previously recognized, therefore there is no impact on our results of operations as a result of waiving rents.

~~CPA~~^®:CPA:18 – Global 9/30/~~2017~~2021 10-Q– 3736

Operating Properties

AtAs of September 30, ~~2017,~~2021, our operating portfolio consisted of 6965 self-storage properties ~~which had an average occupancy rate~~and one student housing operating property. As of ~~91.6%, and nine multi-family properties (including student-housing developments), which had an average occupancy rate of 92.9%. At~~ September 30, ~~2017,~~2021, our operating portfolio was comprised as follows (square footage in thousands):


Location	Number of Properties	Square Footage
Florida	21	1,778
Texas	13	1,009
California	10	860
Nevada	3	243
Delaware	3	241
Georgia	3	171
Illinois	2	100
Hawaii	2	95
Kentucky	1	121
North Carolina	1	121
Washington, D.C.	1	67
South Carolina	1	63
New York	1	61
Louisiana	1	59
Massachusetts	1	58
Missouri	1	41
Oregon	1	40
Total	66	5,128

Location Number of Properties Square Footage
Florida 23
2,277
Texas 13
1,201
California 10
860
Georgia 5
593
Nevada 3
243
Delaware 3
241
North Carolina 2
403
Illinois 2
100
Hawaii 2
95
Kentucky 1
121
District of Columbia 1
67
South Carolina 1
63
New York 1
61
Louisiana 1
59
Massachusetts 1
58
Missouri 1
41
Oregon 1
40
U.S. Total 71
6,523
Canada ^(a)
4
150
United Kingdom ^(b)
3
103
International Total 7
253
Total 78
6,776

~~__________~~


~~(a)~~	~~Represents four build-to-suit projects for self-storage facilities that are unconsolidated and included in the Equity investments in real estate in the consolidated financial statements.~~


~~(b)~~	~~Includes two build-to-suit projects for student-housing developments.~~

~~CPA~~^®~~:18 – Global 9/30/2017 10-Q~~– 38

~~Build-to-Suit and~~ Development Projects

As of September 30, ~~2017,~~2021, we had the following three consolidated ~~development properties and joint-venture~~student housing development projects, including joint ventures, which ~~remain~~remained under construction as of that date (dollars in thousands):

Estimated Completion Date Property Type Location
Ownership Percentage ^(a)
Number of Buildings Square Footage
Estimated Project Totals ^(b)

Amount Funded ^{(b) (c)}
Q4 2017 Hotel
Munich, Germany ^(d)
94.9 % 1
244,176
$ 75,843
$ 67,882
Q3 2018 Student Housing Portsmouth, England 97.0 % 1
126,807
65,704
21,512
Q3 2018 Student Housing Cardiff, Wales 94.5 % 1
96,983
42,252
15,687
Q4 2018 Hotel
Stuttgart, Germany ^(e)
94.9 % 1
244,513
3,634
3,634
TBD Office/Student Housing
Accra, Ghana ^(f)
100.0 % 6
506,537
60,630
23,164
10
1,219,016
$ 248,063
131,879
Third-party contributions ^(g)
(641 )
Total $ 131,238


Location	Ownership Percentage (a)		Number of Buildings	Square Footage	Estimated Project Totals (b) (c)		Amount Funded (b) (c)		Estimated Completion Date
Swansea, United Kingdom (d)	97.0	%	1	176,496	$	91,681	$	60,339	Q3 2022
Granada, Spain (e)	98.5	%	1	75,557	22,329		8,170		Q3 2022
Valencia, Spain (e)	98.7	%	1	100,423	27,105		8,062		Q2 2023
			3	352,476	$	141,115	76,571
Third-party contributions (f)							(1,652)
Total							$	74,919

__________


~~(a)~~	~~Represents our expected ownership percentage upon the completion of each respective development project.~~


~~(b)~~	~~Amounts related to certain of our build-to-suit projects are denominated in a foreign currency. For these projects, amounts are based on their respective spot rates~~ (a)Represents our expected ownership percentage upon the completion of each respective development project. (b)Amounts are based on the applicable exchange rate as ~~of September 30, 2017, where applicable.~~


~~(c)~~	Amounts presented include certain costs that have been fully funded as of September 30, 2017 and are included in Other assets, net but not yet used in construction and therefore not included in Real estate under construction. These amounts also exclude capitalized interest, accrued costs, and capitalized acquisition fees for our Advisor, which are all included in Real estate under construction.


~~(d)~~	During the three months ended September 30, 2017, we partially commenced operations on the net-leased development, and as a result, $54.1 million of the total project was placed into service. The remainder of the project is currently expected to be placed into service during the fourth quarter of 2017.


~~(e)~~	~~This project relates to a net-leased build-to-suit expansion of an existing hotel, which we have fully funded but was still under development as of September 30, 2017.~~


~~(f)~~	On February 19, 2016, the joint venture obtained third-party financing in an amount up to $41.0 million, subject to the tenant obtaining a letter of credit. Since the tenant has not obtained the required letter of credit as of the date of this Report, we are currently unable to estimate when this project will be completed, if at all (~~Note 4~~).


~~(g)~~	~~Amount represents the funds contributed from our joint-venture partners.~~

As of September 30, ~~2017, we had the following unconsolidated development properties~~2021.

(c)Amounts exclude capitalized interest, accrued costs, and ~~joint-venture development projects,~~capitalized acquisition fees paid to our Advisor, which ~~remain~~are all included in Real estate under construction ~~(dollars~~on our condensed consolidated balance sheets.

(d)Amount funded for this project includes a $7.4 million right-of-use (“ROU”) land lease asset as of September 30, 2021, and is included in ~~thousands):~~In-place lease and other intangible assets on our condensed consolidated balance sheets.

(e)Included as part of an agreement with a third party to become a net-leased property upon completion of construction.

(f)Amount represents the funds contributed from our joint-venture partners.

Estimated Completion Date Property Type
Location ^{(a) (b)}

Ownership Percentage ^(c)
Number of Buildings Square Footage
Estimated Project Totals ^(d)

Amount Funded ^(d)
Q2 2018 Self Storage Toronto, Canada 89.9 % 1
119,000
$ 16,978
$ 6,905
Q3 2018 Self Storage Vaughan, Canada 90.0 % 1
95,475
15,590
3,046
Q4 2018 Self Storage Vaughan, Canada 90.0 % 1
105,150
15,827
11,917
3
319,625
$ 48,395
$ 21,868

~~__________~~


~~(a)~~	~~These properties all relate to an unconsolidated investment, which we account for under the equity method of accounting.~~

~~(b)~~

During the nine months ended September 30, 2017, we commenced operations in two Canadian self-storage facilities upon the completion of distinct phases of the overall development, and as a result, placed $9.3 million and $10.1 million of these projects into service. During the three and nine months ended September 30, 2017, we incurred losses of $0.3 million and $0.7 million, respectively, relating to these distinct phases of the projects, which are included in Equity in losses of equity method investment in real estate on our consolidated financial statements.

~~CPA~~^®:CPA:18 – Global 9/30/~~2017~~2021 10-Q– 3937


~~(c)~~	Represents our expected ownership percentage upon the completion of each respective development project. As of September 30, 2017, the joint-venture partner had not yet purchased its 10% equity interest, which will be funded by the distributions they are eligible to receive upon the properties being placed into service (~~Note 4~~).


~~(d)~~	Amounts related to our Canadian build-to-suit projects are denominated in Canadian dollars, which have been partially funded with third-party financing. For these projects, U.S. dollar amounts are based on their respective exchange rate as of September 30, 2017.

Terms and Definitions

Pro Rata Metrics— The portfolio informationabovecontains certain metrics prepared ~~under the~~on a pro rata ~~consolidation method.~~ ~~We refer to these metrics as pro rata metrics.~~basis (“Pro Rata Metrics”). We have a number of investments ~~usually with our affiliates,~~ in which our economic ownership is less than 100%. ~~Under the~~On a full consolidation ~~method,~~basis, we report 100% of the assets, liabilities, revenues, and expenses of those investments that are deemed to be under our control or for which we are deemed to be the primary beneficiary, even if our ownership is less than 100%. Also, for all other jointly owned investments, which we do not control, we report our net investment and our net income ~~or loss~~(loss) from that investment. ~~Under the~~On a pro rata ~~consolidation method,~~basis, we generally present our proportionate share, based on our economic ownership of these jointly owned investments, of the portfolio metrics of those investments. Multiplying each of ~~the~~our jointly owned investments’ financial statement line items by our percentage ownership and adding ~~those amounts to~~ or subtracting those amounts from our totals, as applicable, may not accurately depict the legal and economic implications of holding an ownership interest of less than 100% in ~~such~~our jointly owned investments.

ABR—ABR represents contractual minimum annualized base rent for our net-leased properties and reflects exchange rates as of September 30, ~~2017.~~2021. If there is a rent abatement, we annualize the first monthly contractual base rent following the free rent period. ABR is not applicable to operating properties.

NOI — Net operating income (“NOI”) is a non-GAAP measure intended to reflect the performance of our entire portfolio of properties and investments. We define NOI as lease revenues and other operating and interest income less non-reimbursable property and corporate expenses as determined by GAAP. We believe that NOI is a helpful measure that both investors and management can use to evaluate the financial performance of our properties and it allows for comparison of our portfolio performance between periods and to other REITs. While we believe that NOI is a useful supplemental measure, it should not be considered as an alternative to Net income (loss) as an indication of our operating performance.

~~Financial Highlights~~

Stabilized NOI — We use Stabilized NOI, a non-GAAP measure, as a metric to evaluate the performance of our entire portfolio of properties. Stabilized NOI for development projects and newly acquired operating properties that are not yet substantially leased up are not included in our portfolio information until one year after the project has been substantially completed and placed into service, or the property has been substantially leased up (and the project or property has not been disposed of during or prior to the current period). In addition, any newly acquired stabilized operating property is included in our portfolio of Stabilized NOI information upon acquisition. Stabilized NOI for a net-leased property is included in our portfolio information upon acquisition or in the period when it is placed into service (as the property will already have a lease in place).

Stabilized NOI is adjusted for corporate expenses, such as asset management fees and the Available Cash Distributions to our Advisor (Note 3), that are calculated and reported at the corporate level and not evaluated as part of any property’s operating performance. Additionally, non-cash adjustments (such as straight-line rent adjustments) and interest income related to our notes receivable (which is non-property related) are not included in ~~thousands)~~Stabilized NOI. Lastly, non-core income is excluded from Stabilized NOI as this income is generally not recurring in nature.

We believe that Stabilized NOI is a helpful measure that both investors and management can use to evaluate the financial performance of our properties and it allows for comparison of our portfolio performance between periods and to other REITs. While we believe that Stabilized NOI is a useful supplemental measure, it should not be considered as an alternative to Net income (loss) as an indication of our operating performance.

Three Months Ended September 30, Nine Months Ended September 30,
2017 2016 2017 2016
Total revenues $ 53,201
$ 47,284
$ 152,653
$ 136,797
Acquisition and other expenses —
36
46
4,747
Net income (loss) attributable to CPA^®:18 – Global
9,821
(4,081 ) 16,224
(16,490 )

Cash distributions paid 21,396
20,566
63,606
60,900

Net cash provided by operating activities 67,777
56,005
Net cash used in investing activities (74,320 ) (147,215 )
Net cash provided by financing activities 5,378
57,580

Supplemental financial measures:
FFOattributable to CPA^®:18 – Global ^(a)
27,261
15,297
68,413
41,859
MFFO attributable to CPA^®:18 – Global ^(a)
19,404
14,395
47,097
43,000
Adjusted MFFO attributable to CPA^®:18 – Global ^(a)
16,411
14,786
45,270
43,732

~~__________~~

~~(a)~~

We consider the performance metrics listed above, including Funds from operations, or FFO, Modified funds from operations, or MFFO, and Adjusted modified funds from operations, or Adjusted MFFO, which are supplemental measures that are not defined by GAAP, referred to herein as non-GAAP measures, to be important measures in the evaluation of our operating performance. See ~~Supplemental Financial Measures~~ ~~below for our definitions of these non-GAAP measures and reconciliations to their most directly comparable GAAP measures.~~

~~CPA~~^®:CPA:18 – Global 9/30/~~2017~~2021 10-Q– 4038

~~Total revenues improved for both~~

Reconciliation of Net Income (GAAP) to Net Operating Income Attributable to CPA:18 – Global (non-GAAP) (in thousands):


	Nine Months Ended September 30,
	2021		2020
Net Income (Loss) (GAAP)	$	46,774	$	1,419
Adjustments:
Depreciation and amortization	51,307		44,755
Allowance for credit losses	—		4,865
Gain on sale of real estate, net	(40,332)		(3,285)
Interest expense	35,898		31,658
Other gains and (losses)	2,828		(60)
Losses from equity method investment in real estate	—		386
(Benefit from) provision for income taxes	(218)		1,584
NOI related to noncontrolling interests (1)	(9,540)		(9,077)
NOI related to equity method investment in real estate (2)	—		1,307
Net Operating Income Attributable to CPA:18 – Global (Non-GAAP)	$	86,717	$	73,552

(1) NOI related to noncontrolling interests:
Net income attributable to noncontrolling interests (GAAP)	$	(8,886)	$	(7,487)
Depreciation and amortization	(5,074)		(4,666)
Gain on sale of real estate, net	3,236		—
Interest expense	(3,484)		(3,372)
Other gains and (losses)	(438)		1,519
Benefit from (provision for) income taxes	157		(184)
Available Cash Distributions to a related party (Note 3)	4,949		5,113
NOI related to noncontrolling interests	$	(9,540)	$	(9,077)

(2) NOI related to equity method investment in real estate:
Losses from equity method investment in real estate (GAAP)	$	—	$	(386)
Depreciation and amortization	—		619
Interest expense	—		1,279
Other gains and (losses)	—		(215)
Benefit from income taxes	—		10
NOI related to equity method investment in real estate	$	—	$	1,307

CPA:18 – Global 9/30/2021 10-Q– 39

Reconciliation of Stabilized NOI to Net Operating Income Attributable to CPA:18 – Global (Non-GAAP) (pro rata, in thousands):


	Nine Months Ended September 30,
	2021		2020
Net-leased	$	61,048	$	57,789
Self storage	33,590		28,190
Other operating properties	922		3,819
Stabilized NOI	95,560		89,798
Other NOI:
Corporate (a)	(15,731)		(14,800)
Disposed properties	3,186		(89)
Straight-line rent adjustments (b)	3,055		(5,002)
Non-core income (c)	270		1,971
Notes receivable	(12)		1,383
	86,328		73,261
Development projects (d)	389		(37)
Recently-opened operating properties	—		328
Net Operating Income Attributable to CPA:18 – Global (Non-GAAP)	$	86,717	$	73,552

_________

(a)Includes expenses such as asset management fees, the ~~three~~Available Cash Distributions to our Advisor, and other costs that are calculated and reported at the corporate level and not evaluated as part of any property’s operating performance.

(b)The nine months ended September 30, ~~2017 as compared to the same periods in 2016, primarily as~~2020 includes a ~~result~~$7.0 million write-off of ~~the accretive impact of our investments acquired or placed into service during 2016 and 2017.~~straight-line rent receivables (Note 2).

~~Net income attributable to CPA~~^®~~:18 – Global and FFO improved for both the three and~~(c)The nine months ended September 30, ~~2017~~2020 includes NOI related to lease related settlements collected from tenants that were previously reserved in prior periods, as ~~compared to the same periods in 2016, primarily~~well as ~~a result of the accretive impact of~~termination income received.

(d)Includes NOI for our ~~investments acquired~~ongoing or recently placed into service during 2016 and 2017. Additional improvements resulted from an increase in realized and unrealized foreign currency transaction gains related to our international investments, as well as a decrease in acquisition expenses. The increases were offset by provisions for bad debt expense related to two tenants and an increase in interest expense.student housing development projects.

MFFO and Adjusted MFFO increased for both the three and nine months ended September 30, 2017 as compared to the same periods in 2016, primarily due to the accretive impact of our investments acquired or placed into service during 2016 and 2017. The increases were offset by provisions for bad debt expense related to two tenants and an increase in interest expense.

~~CPA~~^®:CPA:18 – Global 9/30/~~2017~~2021 10-Q– 4140

Results of Operations

We evaluate our results of operations with a ~~primary~~ focus onon: (i) our ability to generate the cash flow necessary to meet our objectives of funding distributions to stockholders and (ii) increasing the value of our real estate investments. As a result, our assessment of operating results gives less emphasis to the effect of unrealized gains and losses, which may cause fluctuations in net income (loss) for comparable periods but have no impact on cash flows, and to other non-cash charges, such as depreciation and impairment charges.

Revenues

The following table presents ~~the comparative results of operations (in thousands):~~our consolidated revenues:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2021		2020		Change		2021		2020		Change
Revenues
Revenues from:
Existing net-leased properties	$	29,190	$	25,087	$	4,103	$	82,894	$	72,622	$	10,272
Recently net-leased student housing properties	2,383		244		2,139		5,598		244		5,354
Net-leased properties sold or held for sale	420		474		(54)		1,273		1,467		(194)
Total net-leased revenues (including reimbursable tenant costs)	31,993		25,805		6,188		89,765		74,333		15,432
Revenues from:
Existing operating properties	18,806		15,430		3,376		52,215		45,456		6,759
Recently opened operating properties	1,303		674		629		3,397		674		2,723
Operating properties sold	1,198		1,135		63		5,745		5,892		(147)
Total operating property revenues	21,307		17,239		4,068		61,357		52,022		9,335
Interest income and other	142		138		4		299		3,635		(3,336)
	$	53,442	$	43,182	$	10,260	$	151,421	$	129,990	$	21,431

Three Months Ended September 30, Nine Months Ended September 30,
2017 2016 Change 2017 2016 Change
Revenues
Lease revenues $ 27,635
$ 24,751
$ 2,884
$ 77,417
$ 73,339
$ 4,078
Other real estate income — operating property revenues 20,649
18,711
1,938
60,345
52,190
8,155
Reimbursable tenant costs 3,034
3,017
17
9,201
8,793
408
Interest income and other 1,883
805
1,078
5,690
2,475
3,215
53,201
47,284
5,917
152,653
136,797
15,856
Operating Expenses
Depreciation and amortization:

Net-leased properties 12,005
11,151
854
33,622
34,145
(523 )
Operating properties 6,921
9,725
(2,804 ) 22,984
28,626
(5,642 )
18,926
20,876
(1,950 ) 56,606
62,771
(6,165 )
Property expenses:
Operating properties 8,593
8,634
(41 ) 25,074
23,261
1,813
Reimbursable tenant costs 3,034
3,017
17
9,201
8,793
408
Asset management fees 2,902
2,547
355
8,378
7,424
954
Net-leased properties 1,792
1,382
410
8,568
3,459
5,109
16,321
15,580
741
51,221
42,937
8,284
General and administrative 1,856
1,601
255
5,337
5,151
186
Acquisition and other expenses —
36
(36 ) 46
4,747
(4,701 )
37,103
38,093
(990 ) 113,210
115,606
(2,396 )
Other Income and Expenses

Interest expense (12,430 ) (11,025 ) (1,405 ) (35,673 ) (31,705 ) (3,968 )
Other income and (expenses) 5,963
156
5,807
18,084
1,189
16,895
Equity in losses of equity method investment in real estate (341 ) (69 ) (272 ) (694 ) (69 ) (625 )
(6,808 ) (10,938 ) 4,130
(18,283 ) (30,585 ) 12,302
Income (loss) before income taxes and loss on sale of real estate 9,290
(1,747 ) 11,037
21,160
(9,394 ) 30,554
Benefit from (provision for) income taxes 2,825
(103 ) 2,928
1,632
(303 ) 1,935
Income (loss) before loss on sale of real estate 12,115
(1,850 ) 13,965
22,792
(9,697 ) 32,489
Loss on sale of real estate, net of tax —
—
—
—
(63 ) 63
Net Income (Loss) 12,115
(1,850 ) 13,965
22,792
(9,760 ) 32,552
Net income attributable to noncontrolling interests (2,294 ) (2,231 ) (63 ) (6,568 ) (6,730 ) 162
Net Income (Loss) Attributable to
CPA^®:18 – Global
$ 9,821
$ (4,081 ) $ 13,902
$ 16,224
$ (16,490 ) $ 32,714

~~CPA~~^®~~:18 – Global 9/30/2017 10-Q~~– 42

Lease ~~Composition~~Revenues

“Existing net-leased properties” are those we acquired or placed into service prior to January 1, 2020 and ~~Leasing Activities~~

As of September 30, 2017, approximately 57.3% of our leases, based on ABR, provide for adjustments based on formulas indexed to changes in the U.S. CPI, or similar indices for the jurisdiction where the property is located, some of which have caps and/or floors. In addition, 37.9% of our leases on that same basis have fixed rent adjustments, for which ABR is scheduled to increase by an average of 3.3% in the next 12 months. We own international investments and, therefore, lease revenues from these investments are subject to exchange rate fluctuations in various foreign currencies, primarily the euro.

The following discussion presents a summary of rents on existing properties arising from leases with new tenants, or second generation leases, and renewed leases with existing tenants for the periods presented and, therefore, doeswere not ~~include new acquisitions for our portfolio~~sold during the periods presented.

During the three months ended September 30, 2017, we signed six leases totaling 61,751 square feet of leased space. Of these leases, two were with new tenants and four were lease modifications with existing tenants. The weighted average new rent for these leases is $9.13 per square foot. For lease modifications, the new rent is $7.40 compared to the weighted average former rent of $8.22 per square foot.

During the nine months ended September 30, 2017, we signed seven leases totaling 67,151 square feet of leased space. Of these leases, two were with new tenants and five were lease modifications with existing tenants. The weighted average new rent for these leases is $9.97 per square foot. For lease modifications, the new rent is $9.09 compared to the weighted average former rent of $9.80 per square foot.

~~CPA~~^®~~:18 – Global 9/30/2017 10-Q~~– 43

~~Property Level Contribution~~

~~The following table presents the property level contribution for our consolidated net-leased and operating properties, as well as a reconciliation to Net income (loss) attributable to CPA~~^®~~:18 – Global (in thousands):~~

Three Months Ended September 30, Nine Months Ended September 30,
2017 2016 Change 2017 2016 Change
Existing Net-Leased Properties
Lease revenues $ 25,363
$ 24,751
$ 612
$ 74,136
$ 73,339
$ 797
Depreciation and amortization (11,074 ) (11,152 ) 78
(32,334 ) (34,145 ) 1,811
Property expenses (1,723 ) (1,382 ) (341 ) (8,343 ) (3,459 ) (4,884 )
Property level contribution 12,566
12,217
349
33,459
35,735
(2,276 )
Recently Acquired Net-Leased Properties
Lease revenues 2,272
—
2,272
3,281
—
3,281
Depreciation and amortization (931 ) —
(931 ) (1,288 ) —
(1,288 )
Property expenses (69 ) —
(69 ) (225 ) —
(225 )
Property level contribution 1,272
—
1,272
1,768
—
1,768
Existing Operating Properties
Revenues 17,784
16,702
1,082
52,090
48,030
4,060
Depreciation and amortization (5,053 ) (8,206 ) 3,153
(17,432 ) (25,405 ) 7,973
Property expenses (7,626 ) (7,575 ) (51 ) (22,372 ) (21,607 ) (765 )
Property level contribution 5,105
921
4,184
12,286
1,018
11,268
Recently Acquired Operating Properties
Revenues 2,865
2,009
856
8,255
4,160
4,095
Depreciation and amortization (1,868 ) (1,518 ) (350 ) (5,552 ) (3,221 ) (2,331 )
Property expenses (967 ) (1,059 ) 92
(2,702 ) (1,654 ) (1,048 )
Property level contribution 30
(568 ) 598
1
(715 ) 716
Property Level Contribution 18,973
12,570
6,403
47,514
36,038
11,476
Add other income:
Interest income and other 1,883
805
1,078
5,690
2,475
3,215
Less other expenses:
Asset management fees (2,902 ) (2,547 ) (355 ) (8,378 ) (7,424 ) (954 )
General and administrative (1,856 ) (1,601 ) (255 ) (5,337 ) (5,151 ) (186 )
Acquisition and other expenses —
(36 ) 36
(46 ) (4,747 ) 4,701
Other Income and Expenses
Interest expense (12,430 ) (11,025 ) (1,405 ) (35,673 ) (31,705 ) (3,968 )
Other income and (expenses) 5,963
156
5,807
18,084
1,189
16,895
Equity in losses of equity method investment in real estate (341 ) (69 ) (272 ) (694 ) (69 ) (625 )
(6,808 ) (10,938 ) 4,130
(18,283 ) (30,585 ) 12,302
Income (loss) before income taxes and loss on sale of real estate 9,290
(1,747 ) 11,037
21,160
(9,394 ) 30,554
Benefit from (provision for) income taxes 2,825
(103 ) 2,928
1,632
(303 ) 1,935
Income (loss) before loss on sale of real estate 12,115
(1,850 ) 13,965
22,792
(9,697 ) 32,489
Loss on sale of real estate, net of tax —
—
—
—
(63 ) 63
Net Income (Loss) 12,115
(1,850 ) 13,965
22,792
(9,760 ) 32,552
Net income attributable to noncontrolling interests (2,294 ) (2,231 ) (63 ) (6,568 ) (6,730 ) 162
Net Income (Loss) Attributable to
CPA^®:18 – Global
$ 9,821
$ (4,081 ) $ 13,902
$ 16,224
$ (16,490 ) $ 32,714

~~CPA~~^®~~:18 – Global 9/30/2017 10-Q~~– 44

Property level contribution is a non-GAAP measure that we believe to be a useful supplemental measure for management and investors in evaluating and analyzing the financial results of our net-leased and operating properties over time. Property level contribution presents the lease and operating property revenues, less property expenses and depreciation and amortization. We believe that Property level contribution allows for meaningful comparison between periods of the direct costs of owning and operating our net-leased assets and operating properties. When a property is leased on a net lease basis, reimbursable tenant costs are recorded as both income and property expense and, therefore, have no impact on the Property level contribution. While we believe that Property level contribution is a useful supplemental measure, it should not be considered as an alternative to Net income (loss) attributable to CPA^®~~:18 – Global as an indication of our operating performance.~~

~~Existing Net-Leased Properties~~

~~Existing net-leased properties are those we acquired prior to January 1, 2016.~~ For the periods presented, there were 5446 existing net-leased properties.

For the three months ended September 30, ~~2017~~2021 as compared to the same period in ~~2016, property level contribution from existing net-leased properties~~2020, lease revenues increased by ~~$0.3~~$4.1 million, primarily due to (i) $2.0 million of higher rent collected during the current year period as a result of the positive impact on rent collections as businesses recovered from the initial effects of the COVID-19 pandemic (uncollected rent was $1.6 million during the current year period, as compared to $3.6 million during the prior year period) (Note 2); (ii) a $1.6 million increase in reimbursable tenant costs largely due to higher property tax assessments at certain properties; and (iii) a $0.3 million increase as a result of the strengthening of the euro and Norwegian krone ~~between~~in relation to the ~~periods, which increased the lease revenues on several of our properties denominated in these currencies.~~U.S. dollar.

For the nine months ended September 30, ~~2017~~2021 as compared to the same period in ~~2016, property level contribution from existing net-leased properties decreased~~2020, lease revenues increased by ~~$2.3~~$10.3 million, primarily due to ~~increased property expenses resulting from bad debt expense~~(i) a $7.0 million write-off of ~~$3.2~~straight-line rent in the prior year period (Note 2); (ii) a $2.8 million ~~associated with two~~increase as a result of ~~our jointly owned investments during 2017. Offsetting~~ the strengthening of the euro and Norwegian krone in relation to the U.S. dollar; and (iii) a $1.4 million increase in ~~property expenses was a decrease of $1.8 million in depreciation and amortization primarily~~reimbursable tenant costs largely due to higher property tax assessments at certain properties, partially offset by $1.7 million of lower rent collected during the ~~full amortization~~current year period, as a result of ~~an in-place lease intangible asset subsequent~~the adverse impact of the COVID-19 pandemic (uncollected rent was $8.3 million during the current year period, as compared to ~~September 30, 2016.~~$6.6 million during the prior year period) (Note 2).

“Recently ~~Acquired Net-Leased Properties~~

~~Recently acquired~~ net-leased ~~properties~~student housing properties” are those ~~that~~ we ~~acquired or~~ placed into service subsequent to December 31, ~~2015.~~2019 or remain under construction as a development project (and are subject to net leases upon completion of construction). For the periods presented, there were ~~three~~ten recently net-leased student housing properties, comprised of eight student housing properties and two ongoing student housing development projects.

CPA:18 – Global 9/30/2021 10-Q– 41

“Net-leased properties sold or held for sale” includes one net lease property classified as held for sale at September 30, 2021 (which was sold in October 2021 (Note 4, Note 14)) and one net lease property sold during the year ended December 31, 2020.

Operating Property Revenues

“Existing operating properties” are those we acquired ~~net-leased properties.~~or placed into service prior to January 1, 2020 and were not sold during the periods presented. For the periods presented, there were 65 existing operating properties (all of which are self-storage operating properties).

For the three and nine months ended September 30, ~~2017,~~2021 as compared to the same periods in ~~2016,~~2020, operating property ~~level contribution~~revenues from ~~recently acquired net-leased~~existing operating properties increased by ~~$1.3~~$3.4 million and ~~$1.8~~$6.8 million, respectively, ~~primarily~~ due to an ~~acquisition~~increase in ~~the first quarter of 2017~~occupancy and ~~two build-to-suit projects~~unit rates across our self-storage portfolio.

“Recently opened operating properties” are student housing operating properties that were placed into service ~~during the second quarter~~subsequent to December 31, 2019, or remain under construction as a development project (and are not subject to net leases upon completion of ~~2017.~~

~~Existing Operating Properties~~

~~Existing operating properties are those we acquired prior to January 1, 2016.~~construction). For the periods presented, ~~there were 62 existing~~we had two recently opened student housing operating ~~properties.~~properties, comprised of a student housing operating property placed into service during the third quarter of 2020 and an ongoing student housing development project.

“Operating properties sold” includes the two student housing operating properties located in the United Kingdom sold during the nine months ended September 30, 2021 (Note 1 2).

Interest Income and Other

Interest income and other primarily consists of interest income from our notes receivable investment (Note 5) and other non-recurring income.

For the three months ended September 30, ~~2017~~2021 as compared to the same period in 2016, property level contribution from existing operating properties increased by $4.2 million, primarily due to an increase in revenues of $1.1 million and a decrease in depreciation and amortization expense of $3.2 million. The increase in revenues2020, interest income was primarily due to an increase of the average occupancy rate for our self-storage properties from September 30, 2016 to September 30, 2017, which rose from 91.3% to 91.6%, respectively. The decrease in depreciation and amortization expense was primarily due to certain in-place lease intangible assets becoming fully amortized subsequent to September 30, 2016.relatively flat.

For the nine months ended September 30, ~~2017~~2021 as compared to the same period in ~~2016, property level contribution from existing operating properties increased~~2020, interest income and other decreased by ~~$11.3~~$3.3 million, primarily due to ~~an increase in revenues of $4.1~~(i) a $1.4 million ~~and a~~ decrease in interest income recognition from our notes receivable as a result of the borrower default on the mortgage loan senior to our mezzanine tranche of a mortgage-backed security; (ii) the collection of $1.1 million in lease-related settlements in the prior year period as a result of a lease restructuring at one of our properties in 2019; and (iii) $0.8 million in termination income recognized in the prior year period.

Operating Expenses

Depreciation and Amortization

The following table presents our consolidated depreciation and amortization expense of $8.0 million. The increase in revenues was primarily due to an increase of the average occupancy rate for our self-storage properties from September 30, 2016 to September 30, 2017, which rose from 91.3% to 91.6%, respectively. The decrease in depreciation and amortization expense was primarily due to certain in-place lease intangible assets becoming fully amortized subsequent to September 30, 2016.amortization:

~~Recently Acquired Operating Properties~~


	Three Months Ended September 30,						Nine Months Ended September 30,
	2021		2020		Change		2021		2020		Change
Depreciation and amortization
Net-leased properties	$	13,755	$	12,228	$	1,527	$	40,819	$	35,351	$	5,468
Operating properties	3,501		3,337		164		10,488		9,404		1,084
	$	17,256	$	15,565	$	1,691	$	51,307	$	44,755	$	6,552

Recently acquired operating properties are those that we acquired or placed into service subsequent to December 31, 2015. For the periods presented, there were ten recently acquired operating properties.

~~CPA~~^®~~:18 – Global 9/30/2017 10-Q~~– 45

For the three months ended September 30, 2017 compared to the same period in 2016, property level contribution from recently acquired operating properties increased by $0.6 million, primarily due to increased lease revenues of $0.9 million, which were partially offset by increased depreciation and amortization expense of $0.4 million. These increases were due to the operating properties we acquired and placed into service, primarily a completed student-housing development, during 2016 and 2017.

For the nine months ended September 30, 2017 compared to the same period in 2016, property level contribution from recently acquired operating properties increased by $0.7 million, primarily due to increased lease revenues of $4.1 million, which were partially offset by increased depreciation and amortization expense and property expenses of $2.3 million and $1.0 million, respectively. These increases were due to the operating properties we acquired and placed into service, primarily a completed student-housing development, during 2016 and 2017.

~~Other Revenues and Expenses~~

~~Interest Income and Other~~

For the three and nine months ended September 30, ~~2017~~2021 as compared to the same periods in ~~2016, interest income~~2020, depreciation and ~~other~~amortization increased ~~by $1.1~~for both our net-leased and operating properties as a result of the four and five student housing properties placed into service during 2021 and 2020, respectively.

CPA:18 – Global 9/30/2021 10-Q– 42

Allowance for Credit Losses

During the nine months ended September 30, 2020, we recorded an allowance for credit losses of $4.9 million ~~and $3.2 million, respectively, primarily~~ due to changes in expected economic conditions relating to a net investment in direct financing lease (Note 5).

Other Income and (Expenses), and (Provision for) Benefit from Income Taxes

Gain on Sale of Real Estate, Net

Gain on sale of real estate, net, consists of gain on the sale of properties that were disposed of during the reporting period. Our dispositions are more fully described in Note 12.

Interest Expense

Our interest ~~earned on~~expense is directly impacted by the mortgage financings obtained, assumed, or extinguished in connection with our ~~mezzanine loan~~ investment ~~that was acquired in November 2016.~~and disposition activity (Note 9).

~~Property Expenses — Asset Management Fees~~

For the three and nine months ended September 30, ~~2017~~2021 as compared to the same periods in ~~2016, asset management fees increased by $0.4 million and $1.0 million, respectively, due to investment volume during 2017 and 2016, which increased the asset base from which our Advisor earns a fee.~~

~~General and Administrative~~

For the three and nine months ended September 30, 2017 compared to the same period in 2016, general and administrative expenses increased by $0.3 million and $0.2 million, respectively, primarily due to an increase in personnel and overhead expenses reimbursed to our Advisor. The increase was due to our higher trailing four quarters of reported revenues compared to those of the other Managed Programs during the three and nine months ended September 30, 2017.

~~Acquisition and Other Expenses~~

~~Acquisition expenses represent direct costs incurred to acquire properties in transactions that are accounted for as business combinations, whereby such costs are required to be expensed as incurred (Note 2). On January 1, 2017, we adopted ASU 2017-01 (Note 2~~), and as a result, future transaction costs are more likely to be capitalized since we expect most of our future acquisitions to be classified as asset acquisitions under this new accounting standard. In addition, goodwill will no longer be allocated and written off upon sale if future sales are deemed to be sales of assets and not businesses.

~~For the three months ended September 30, 2017 compared to the same period in 2016, acquisition expenses remained relatively flat.~~

For the nine months ended September 30, 2017 compared to the same period in 2016, acquisition expenses decreased by $4.7 million, primarily because none of our 2017 acquisitions were deemed to be business combinations.

~~Interest Expense~~

~~Our interest expense is directly impacted by the mortgage loans or other financing obtained or assumed in connection with our investing activity (Note 9). For the three months ended September 30, 2017 compared to the same period in 2016,~~2020, interest expense increased by ~~$1.4~~$1.7 million and $4.2 million, respectively, primarily ~~due to an increase in~~as a result of the mortgage financings obtained on certain student housing properties placed into service during 2021 and ~~bond financing obtained or assumed in connection with~~2020.

The following table presents certain information about our ~~investing activity during the respective periods. Our average~~ outstanding debt balance was $1.3 billion and $1.1 billion during the three months ended September 30, 2017 and 2016, respectively. Our weighted-average interest rate was 4.0% during both the three months ended September 30, 2017 and 2016, respectively.(dollars in thousands):


	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Average outstanding debt balance	$	1,300,560		$	1,244,196		$	1,316,454		$	1,208,438
Weighted-average interest rate	3.6		%	3.8		%	3.6		%	3.8		%

~~CPA~~^®~~:18 – Global 9/30/2017 10-Q~~– 46

For the nine months ended September 30, 2017 compared to the same period in 2016, interest expense increased by $4.0 million. Our average outstanding debt balance was $1.2 billion and $1.1 billion during the nine months ended September 30, 2017 and 2016, respectively. Our weighted-average interest rate was 4.0% and 4.1% during the nine months ended September 30, 2017 and 2016, respectively.

Other ~~Income~~Gains and ~~(Expenses)~~(Losses)

Other ~~income~~gains and ~~(expenses)~~(losses) primarily consists of gains and losses on foreign currency transactions and derivative instruments. We make intercompany loans to a number of our foreign subsidiaries, most of which do not have the U.S. dollar as their functional currency. Remeasurement of foreign currency intercompany transactions that are scheduled for settlement, consisting primarily of accrued interest and short-term loans, are included in the determination of net ~~income.~~income (loss). We also recognize gains or losses on foreign ~~currency transactions when we repatriate cash from our foreign investments or hold foreign~~ currencies inheld by entities with athe U.S. dollar as their functional currency ~~designation. In addition, we have certain derivative instruments, including~~due to fluctuations in foreign ~~currency contracts, that are not designated as hedges for accounting purposes, for which realized and unrealized gains and losses are included in earnings.~~exchange rates. The timing and amount of such gains or losses cannot always be estimated and are subject to fluctuation.

2021 — For the three months ended September 30, ~~2017, we recognized~~2021, net other ~~income of $6.0~~losses were $2.8 million, which ~~was~~were primarily comprised of ~~$5.6 million of~~(i) net realized and unrealized losses of $1.7 million related to changes in foreign currency ~~transaction~~exchange rates; (ii) a net loss on extinguishment of debt of $1.5 million, recognized on the prepayment of a non-recourse mortgage loan (Note 9); and (iii) a gain of $0.4 million relating to proceeds received from a prior disposition.

2020 — For the three months ended September 30, 2020, net other gains were $1.1 million, primarily comprised of (i) net realized and unrealized gains of $1.3 million, related to changes in foreign currency exchange rates; (ii) net realized gains of $0.3 million, related to the settlement of foreign currency forward contracts and collars; (iii) interest income from our cash accounts of $0.1 million; and (iv) losses incurred of $0.6 million related to our ~~international investments, primarily related to our short-term intercompany loans, and $0.4 million of gains recognized on the change in fair value of rent guarantees.~~previously owned Ghana investment.

2021 — For the nine months ended September 30, ~~2017, we recognized~~2021, net other ~~income of $18.1~~losses were $2.8 million, which ~~was~~were primarily comprised of ~~$16.2 million of~~(i) net realized and unrealized losses of $2.0 million related to changes in foreign currency ~~transaction gains related to our international investments, $0.9~~exchange rates; (ii) a net loss on extinguishment of debt of $1.5 million, ~~of realized gains recognized on foreign currency forward contracts and collars, and $0.9 million of gains~~ recognized on the ~~change in the fair value~~prepayment of ~~rent guarantees.~~

~~For the three months ended September 30, 2016, we recognized net other income~~a non-recourse mortgage loan (Note 9); (iii) a gain of $0.4 million relating to proceeds received from a prior disposition; and (iv) $0.2 million ~~which was primarily comprised~~in net gains realized upon the settlement of $0.3 million of gains recognized on a change in fair value of rent guarantees and $0.3 million of gains recognized on foreign currency forward contracts and collars, partially offset by $0.6 million of realized and unrealized foreign currency transaction losses related to our international investments.derivatives at maturity.

2020 — For the nine months ended September 30, ~~2016, we recognized~~2020, net other ~~income~~gains were $0.1 million, which were primarily comprised of (i) net realized and unrealized gains of $2.0 million, related to changes in foreign currency exchange rates; (ii) net realized gains of $1.2 million, ~~which was primarily comprised~~related to the settlement of ~~the $1.1 million of gains recognized on the change in fair value of rent guarantees, $0.4 million of~~foreign currency forward contracts and collars; (iii) interest income ~~received on~~from our cash ~~balances held with financial institutions,~~accounts of $0.4 million; and ~~$0.2~~(iv) losses incurred of $3.5 million ~~of gains recognized on derivatives, partially offset by $0.4 million of realized and unrealized foreign currency transaction losses~~ related to our ~~international investments.~~previously owned Ghana investment.

CPA:18 – Global 9/30/2021 10-Q– 43

~~Equity in Losses of Equity Method Investment in Real Estate~~

For the three and nine months ended September 30, 2017 compared to the same periods in 2016, equity in losses of equity method investment in real estate increased by $0.3 million and $0.6 million, respectively, primarily due to the commencement of operations in two Canadian self-storage facilities (upon completion of distinct phases of the overall development) in 2017 compared to one in July 2016.

(Provision for) Benefit from ~~(Provision for)~~ Income Taxes

Our ~~provision for~~(provision for) benefit from income taxes is primarily related to our international properties.

~~During~~For the three months ended September 30, 2021, as compared to the same period in 2020, our provision for income taxes decreased by $0.3 million, primarily due to (i) the release of a portion of a valuation allowance relating to an international property during the current year period; and (ii) lower deferred tax expense related to interest carryforward reductions at our Norwegian properties resulting from a change in tax regulation during the prior year period.

For the nine months ended September 30, 2021, we recognized a benefit from income taxes of $0.2 million, compared to a provision for income taxes of $1.6 million recognized in the same period in 2020, primarily due to (i) the establishment of a valuation allowance relating to one of our hotel properties in Germany in the prior year period; (ii) higher current tax expense in the prior year period relating to back rent received from an international tenant; and (iii) the items noted in the preceding paragraph.

Net Income Attributable to Noncontrolling Interests

For the three and nine months ended September 30, 2017, we recorded a benefit from income taxes of $2.8 million and $1.6 million, respectively, comprised of current income taxes of $0.1 million and $1.3 million, respectively, and a benefit from deferred income taxes of $2.9 million in both periods.

~~During the~~ three and nine months ended September 30, 2016, we recorded a provision for income taxes of $0.1 million and $0.3 million, respectively, comprised of current income taxes of $0.1 million and $0.7 million, respectively, and a benefit from deferred income taxes of less than $0.1 million and $0.4 million, respectively.

~~CPA~~^®~~:18 – Global 9/30/2017 10-Q~~– 47

~~Net Income Attributable to Noncontrolling Interests~~

~~For the three months ended September 30, 2017~~2021 as compared to the same ~~period~~periods in ~~2016,~~2020, net income attributable to noncontrolling interests ~~remained relatively flat.~~

~~For~~increased by $3.7 million and $1.4 million, respectively, primarily due to the net gain on sale of the two student housing operating properties disposed in the current year periods (N ote 12), partially offset by the losses incurred at our previously owned joint-venture investment in Ghana during the nine months ended September 30, 2017 compared to the same period in 2016, net income attributable to noncontrolling interests decreased by $0.2 million, primarily due to the bad debt expense associated with two jointly owned investments, offset by an increase in the available cash generated by the Operating Partnership, which we refer to as the Available Cash Distribution (~~Note 3~~).2020.

Liquidity and Capital Resources

Sources and Uses of Cash During the Period

We use the cash flow generated from our investments primarily to meet our operating expenses, fund construction projects, service debt, and fund distributions to stockholders. We currently expect that, for the short-term, the aforementioned cash requirements will be funded by our cash on hand and financings. We may also use proceeds from financings and asset sales for the acquisition of real estate and real estate-related investments.

Our liquidity would be adversely affected by unanticipated costs and greater-than-anticipated operating expenses. To the extent that our working capital reserve is insufficient to satisfy our cash requirements, additional funds may be provided from cash generated from operations or through short-term borrowings. In addition, we may incur indebtedness in connection with the acquisition of real estate, refinance the debt thereon, arrange for the leveraging of any previously unfinanced property, or reinvest the proceeds of financings or refinancings in additional properties.

~~Sources and Uses of Cash During the Period~~

We closed our initial public offering on April 2, 2015 and have invested the proceeds of that offering. We expect to continue to invest, primarily in a diversified portfolio of income-producing commercial properties and other real estate-related assets, with our primary source of operating cash flow to be generated from cash flow from our investments. We expect that these cash flows will fluctuate periodically due to a number of factors, which may include, among other things: the timing of ~~purchases~~funding for our build-to-suit and ~~sales of real estate;~~development projects; the timing of the receipt of proceeds from, and the repayment of, non-recourse ~~mortgage loans~~secured debt and ~~bonds payable,~~the WPC line of credit, and the receipt of lease revenues; whether our Advisor receives fees in shares of our common stock or cash, which our board of directors ~~must elect~~elects after consultation with our Advisor; ~~the timing and characterization of distributions received from equity investments in real estate;~~ the timing of payments of the Available Cash Distributions to our Advisor; and changes in foreign currency exchange rates. Despite these fluctuations, we believe our investments will generate sufficient cash from operations to meet our normal recurring short-term and long-term liquidity ~~needs.~~needs, as well as the measures noted above. We may also use existing cash resources, the proceeds of non-recourse ~~mortgage loans,~~secured debt, sales of assets, and distributions reinvested in our common stock through our DRIP ~~and~~(as noted below, our board of directors has limited the ~~issuance~~amount of ~~additional equity securities~~cash available for our redemption program to the amount reinvested in our DRIP) to meet these needs. 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 — Net cash provided by operating activities increased by ~~$11.8~~$0.2 million during the nine months ended September 30, ~~2017~~2021 as compared to the same period in ~~2016,~~2020, primarily ~~reflecting~~due to higher revenues from self-storage operating properties, driven by an increase in occupancy and unit rates, partially offset by the adverse impact of ~~investments acquired or placed into service during 2016~~the COVID-19 pandemic on rent collections and ~~2017.~~higher interest expense.

Investing Activities — Our investing activities are generally comprised of ~~real estate purchases,~~ funding of ~~build-to-suit~~ development projects, capitalized property-related costs, and payment of deferred acquisition fees to our Advisor for asset ~~acquisitions, and capitalized property-related costs.~~

~~Net cash used in investing activities totaled $74.3 million for~~acquisitions. In addition, during the nine months ended September 30, ~~2017. This was primarily~~2021, we sold two student housing operating properties located in the ~~result~~United Kingdom for net proceeds of ~~cash outflows~~$147.8 million (Note 12).

Financing Activities — Our financing activities are generally comprised of ~~$40.8 million to fund construction costs~~borrowings, repayments and prepayments of our ~~build-to-suit projects (Note 4), $27.9 million for our real estate investments, $5.6 million for capital contributions~~non-recourse secured debt, and activity relating to our ~~equity investments, $4.6 million for capital expenditures on~~common stock, which includes (i) payments of distributions to stockholders, (ii) distributions that are reinvested by stockholders in shares of our owned real estate, $3.7 million for value added taxes paid in connection with acquisitions of real estate, and $3.7 million for payment of deferred acquisition fees to WPC. We also had cash inflows of $12.4 million for value added taxes refunded in connection with real estate acquisitions.

~~CPA~~^®~~:18 – Global 9/30/2017 10-Q~~– 48

~~Financing Activities~~ — Net cash provided by financing activities totaled $5.4 million for the nine months ended September 30, 2017. This was primarily due to cash inflows of $72.4 million from non-recourse mortgage financings (~~Note 9), $31.8 million of net proceeds received~~common stock through our DRIP, and $2.3 million in contributions from noncontrolling interests. We had cash outflows of $63.6 million related to distributions paid to our stockholders, $12.0 million for distributions to noncontrolling interests, $9.1 million for scheduled payments and prepayments of mortgage loan principal, $8.5 million in net repayments of notes payable to WPC (~~Note 3), and $7.3 million for the repurchase~~(iii) repurchases of shares of our common stock pursuant to our redemption ~~program.~~program as described below. In addition, cash paid and received in accordance with our individual agreements with our joint-venture partners are considered financing cash flow activities.

CPA:18 – Global 9/30/2021 10-Q– 44

Distributions

Our objectives are to generate sufficient cash flow over time to provide stockholders with ~~distributions and to continue to seek investments with potential for capital appreciation throughout varying economic cycles.~~distributions. For the nine months ended September 30, ~~2017,~~2021, we declared distributions to stockholders of ~~$64.2~~$28.4 million, which were comprised of ~~$30.8~~$15.4 million of cash distributions and ~~$33.4~~$13.1 million reinvested by stockholders in shares of our common stock pursuant to our DRIP. From inception through September 30, ~~2017,~~2021, we have declared distributions to stockholders totaling ~~$280.5~~$559.1 million, which were comprised of cash distributions of ~~$131.9~~$274.9 million and ~~$148.6~~$284.2 million reinvested by stockholders in shares of our common stock pursuant to our DRIP.

We believe that FFO, a non-GAAP measure, is ~~the most~~an appropriate metric to evaluate our ability to fund distributions to stockholders. For a discussion of FFO, see Supplemental Financial Measures below.

~~Over the life of our company,~~ Since inception, the regular quarterly cash distributions that we pay ~~are expected to be~~have principally ~~sourced from our~~been covered by FFO or cash flow from operations. However, we ~~have~~ funded a portion of our cash distributions to date using net proceeds from our initial public offering and there can be no assurance that our FFO or cash flow from operations will be sufficient to cover our future distributions. WeOur distribution coverage using both FFO and net cash provided by operating activities fully covered ~~total~~our distributions declared for the three and nine months ended September 30, 2017 using FFO and our distribution coverage on a cumulative basis through that date was approximately 42.3%, with the balance funded primarily with proceeds from our offering and, to a lesser extent, other sources. We funded all of these distributions for the nine months ended September 30, 2017 from Net cash provided by operating activities. Since inception, we have funded 62.6% of our cumulative distributions from Net cash provided by operating activities, with the remaining 37.4%, or $104.8 million, being funded primarily with proceeds from our offering and, to a lesser extent, other sources. FFO and cash flow from operations are first applied to current period distributions, then to any deficit from prior period cumulative negative FFO or cumulative negative cash flow, as applicable, and finally to future period distributions. As we have fully invested the proceeds of our offering, we expect that in the future, if distributions cannot be fully sourced from FFO or cash flow from operations, they may be sourced from the proceeds of financings or the sales of assets. In determining our distribution policy to date, we have placed primary emphasis on projections of cash flow from operations, together with cash distributions from our unconsolidated investments, rather than on historical results of operations (though these and other factors may be a part of our consideration). Thus, in setting a distribution rate, we focus primarily on expected returns from those investments we have already made, including ongoing build-to-suit projects that have not yet been placed into service, as well as our anticipated rate of return from any future investments, to assess the sustainability of a particular distribution rate over time.2021.

Redemptions

We maintain a quarterly redemption program pursuant to which we may, at the discretion of our board of directors, redeem shares of our common stock from stockholders seeking liquidity. ~~During~~On August 31, 2020, our board of directors approved, effective as of that date, generally limiting the ~~nine months ended~~amount of cash available for our redemption program to the amount reinvested by stockholders in our DRIP (as further detailed in the Form 8-K filed with the SEC on September ~~30, 2017, we redeemed 1,376,438 and 262,864~~1, 2020); however, our board of directors retains the discretion to modify that limitation at any time.

The following table illustrates our redemption activity in both shares of ~~Class A and Class C~~ common stock ~~respectively, comprised of 342~~ and 63 redemption requests, respectively, and an average price per share of $7.96 and $7.69 per share for Class A and Class C common stock. As of the date of this Report, we have fulfilled all of the valid redemption requests that we receiveddollars during the nine months ended September 30, ~~2017.~~ 2021 (dollars in thousands):


	Class A			Class C			Totals
	Shares	Dollars (a)		Shares	Dollars (a)		Shares	Dollars (a)
Redemptions unfulfilled beginning balance (b)	995,407	$	8,085	716,392	$	5,819	1,711,799	$	13,904
Redemptions requested (c)	1,904,489	16,510		1,218,654	10,648		3,123,143	27,158
Redemptions processed (d)	(1,153,517)	(10,152)		(958,944)	(8,449)		(2,112,461)	(18,601)
Redemptions unfulfilled ending balance (b)	1,746,379	14,782		976,102	8,262		2,722,481	23,044

___________

(a)Except for redemptions sought in certain defined special circumstances, the redemption price of the shares listed above was 95% of our most recently published quarterly ~~NAV.~~NAVs at the time of redemption was made or processed. For shares redeemed under such special circumstances, the redemption price was the greater of the price paid to acquire the shares from us or 95% of our most recently published quarterly ~~NAV.~~NAVs at the time of redemption. Unfulfilled redemptions are reflected at 95% of our most recently published quarterly NAVs.

(b)Requests not fulfilled in one quarter will automatically be carried forward to the next quarter (unless such request is revoked) and processed with new requests on a pro rata basis, following prioritization of special circumstance redemption requests.

(c)Redemptions requested are comprised of 405 and 174 new redemption requests received during the nine months ended September 30, 2021 for our Class A and Class C common stock, respectively.

(d)Redemptions were fulfilled at an average price of $8.80 and $8.81 per share for Class A and Class C common stock, respectively.

~~CPA~~^®:CPA:18 – Global 9/30/~~2017~~2021 10-Q– 4945

Summary of Financing

The table below summarizes our non-recourse ~~mortgages and bonds payable~~secured debt, net (dollars in thousands):


	September 30, 2017			December 31, 2016				September 30, 2021			December 31, 2020
Carrying Value ^(a)							Carrying Value (a)
Fixed rate	$	1,122,371		$	1,009,817		Fixed rate	$	884,125		$	942,378
Variable rate:							Variable rate:
Amount subject to floating interest rate							Amount subject to floating interest rate	203,619			135,481
Amount subject to interest rate swaps and caps	100,328			83,007			Amount subject to interest rate swaps and caps	160,480			232,519
Amount subject to floating interest rate	42,743			39,319
Amount of variable rate debt subject to interest rate reset features	—			25,268
	143,071			147,594				364,099			368,000
	$	1,265,442		$	1,157,411			$	1,248,224		$	1,310,378
Percent of Total Debt							Percent of Total Debt
Fixed rate	89		%	87		%	Fixed rate	71		%	72		%
Variable rate	11		%	13		%	Variable rate	29		%	28		%
	100		%	100		%		100		%	100		%
Weighted-Average Interest Rate at End of Period							Weighted-Average Interest Rate at End of Period
Fixed rate	4.0		%	4.1		%	Fixed rate	3.9		%	3.8		%
Variable rate ^(b)	3.8		%	3.8		%	Variable rate (b)	3.2		%	3.2		%
Total debt							Total debt	3.7		%	3.6		%

___________


~~(a)~~	Aggregate debt balance includes unamortized deferred financing costs totaling $8.5 million and $8.9 million as of September 30, 2017 and December 31, 2016, respectively, and unamortized premium totaling $0.9 million and $0.5 million as of September 30, 2017 and December 31, 2016, respectively.


~~(b)~~	~~The impact of our derivative instruments is reflected in the weighted-average interest rates.~~

(a)Aggregate debt balance includes unamortized deferred financing costs totaling $6.9 million as of both September 30, 2021 and December 31, 2020, and unamortized premium, net of $2.9 million and $2.5 million as of September 30, 2021 and December 31, 2020, respectively (Note 9).

(b)The impact of our derivative instruments is reflected in the weighted-average interest rates.

Cash Resources

AtAs of September 30, ~~2017,~~2021, our cash resources consisted of the following:

•cash and cash equivalents totaling ~~$74.7 million.~~$93.5 million (Note 2). Of this amount, ~~$34.8~~$45.7 million (at then-current exchange rates) was held in foreign subsidiaries, ~~but we~~which may be subject to restrictions or significant costs should we decide to repatriate these ~~amounts. As~~funds;

•ability to borrow up to $50.0 million from the unsecured revolving line of credit with WPC (scheduled to mature on March 31, 2022), which had no outstanding balance as of September 30, ~~2017, we utilized the remaining funds available~~2021 (Note 3);

•ability to borrow up to $39.9 million and $1.2 million under our third-party and external joint-venture financing arrangements, ~~for either funding of construction or mortgage financing upon completion of certain of our build-to-suit~~respectively; and ~~development projects (Note 9), which excludes $41.0 million related to the university complex development located in Accra, Ghana (Note 4~~) that remains subject to the tenant obtaining a letter of credit. Our cash resources may be used for future investments and can be used for working capital needs, other commitments, and distributions to our stockholders. In addition, our

•unleveraged properties that had an aggregate carrying value of ~~$206.0~~$126.3 million atas of September 30, ~~2017,~~2021, although there can be no assurance that we would be able to obtain financing for these ~~properties.~~properties on acceptable terms.

~~In July 2016,~~Our cash resources may be used for funding construction costs, working capital needs, other commitments, and to make distributions to our board of directors and the board of directors of WPC approved unsecured loans from WPC to us, at the sole discretion of WPC’s management, of up to $50.0 million in the aggregate, at a rate equal to the rate at which WPC can borrow funds under its senior credit facility, for acquisition funding purposes. At September 30, 2017, we had $19.5 million of such loans outstanding from WPC, including accrued interest. The annual interest rate equaled LIBOR plus 1.1% through February 22, 2017. After that date, the annual interest rate equaled LIBOR plus 1.0%. Subsequent to September 30, 2017, we repaid the remaining $19.5 million of loans outstanding to WPC, including accrued interest (~~Note 13~~).stockholders.

~~CPA~~^®:CPA:18 – Global 9/30/~~2017~~2021 10-Q– 5046

Cash Requirements and Liquidity

During the next 12 months following September 30, 2021 and thereafter, we expect that our significant cash requirements will ~~include payments to acquire new investments, funding capital commitments such as build-to-suit projects,~~ include:

•paying distributions to our stockholders and to our affiliates that hold noncontrolling interests in entities we ~~control,~~ control;

•funding future capital commitments such as development projects (Note 4);

•making scheduled principal and balloon payments on our debt obligations (Note 9);

•making scheduled interest payments on our debt obligations (future interest payments total $131.6 million, with $44.9 million due during the next 12 months; interest on unhedged variable-rate debt obligations was calculated using the applicable annual variable interest rates); and

•making share repurchases pursuant to our redemption ~~plan,~~plan.

We use the cash flow generated from our investments primarily to meet our operating expenses, service debt, and ~~making scheduled debt servicing payments, as well as other normal recurring~~fund distributions to stockholders. We may also use proceeds from asset sales to fund development projects, build-to-suit investments, and short-term cash requirements. We currently expect that, for the short-term, the aforementioned cash requirements will be funded through our cash resources (as noted above), and our cash flow from operations, including the cash received under net lease and operating ~~expenses. Balloon payments totaling $16.4 million on our consolidated mortgage loan obligations~~lease agreements. During 2020 and 2021, we placed into service nine student housing properties (eight of which executed net lease agreements). In addition, in order to ~~third parties are due~~preserve cash and maintain financial flexibility during the ~~next 12 months. Our~~COVID-19 pandemic:

•at our option our Advisor ~~is actively seeking~~has received all asset management fees in shares of our Class A common stock since April 1, 2020;

•we have reduced our distributions declared for both Class A and Class C common stock since the second quarter of 2020;

•we limited the amount of cash available for our redemption program to the amount reinvested by stockholders in our DRIP, since August 2020; and

•we have refinanced certain loans and have the ability to refinance ~~certain of these~~ loans ~~although there can~~coming due.

Our liquidity could be no assurance that it will be able to do so on favorable terms, or at all. Additionally, we had two outstanding loans from WPC that were set to mature in October 2017 and May 2018, which were fully repaid subsequent to September 30, 2017 (~~Note 3~~). We expect to fund $90.3 million related to capital and other lease commitments during the next 12 months. We expect to fund future investments, capital commitments, any capital expenditures on existing properties, and scheduled and unscheduled debt payments on our mortgage loans through the use of our cash reserves, cash generated from operations, and proceeds from financings and asset sales.

~~Off-Balance Sheet Arrangements and Contractual Obligations~~

~~The table below summarizes our debt, off-balance sheet arrangements, and other contractual obligations (primarily our capital commitments and lease obligations) at~~ ~~September 30, 2017~~adversely affected by unanticipated costs, greater-than-anticipated operating expenses, and the ~~effect that these arrangements and obligations are expected~~continuing adverse impact of the COVID-19 pandemic, such as tenants not paying rental obligations. The extent to ~~have on~~which the COVID-19 pandemic impacts our liquidity and ~~cash flow in the specified~~debt covenants will depend on future ~~periods (in thousands):~~developments, which are highly uncertain and cannot be predicted with confidence.

Total
Less than
1 year
1-3 years 3-5 years
More than
5 years
Debt, net — principal ^(a)
$ 1,273,023
$ 22,827
$ 109,822
$ 364,491
$ 775,883
Interest on borrowings and deferred acquisition fees 307,253
50,880
98,606
81,957
75,810
Capital commitments ^(b)
151,214
89,579
61,635
—
—
Loan from WPC, including accrued interest ^(c)
19,508
19,508
—
—
—
Operating and other lease commitments ^(d)
12,536
756
1,513
869
9,398
Annual distribution and shareholder servicing fee ^(e)
6,145
485
4,278
1,382
—
Deferred acquisition fees — principal ^(f)
5,682
4,893
789
—
—
Asset retirement obligations ^(g)
2,835
—
—
—
2,835
$ 1,778,196
$ 188,928
$ 276,643
$ 448,699
$ 863,926

~~__________~~


~~(a)~~	Represents the non-recourse debt and bonds payable that we obtained in connection with our investments. At September 30, 2017, this excludes $8.5 million of deferred financing costs and $0.9 million of unamortized premium, net.


~~(b)~~	~~Capital commitments include our current build-to-suit projects totaling $144.4 million (Note 4), a $6.7 million outstanding commitment on a build-to-suit project that has been placed into service, and $0.1 million related to other construction commitments.~~


~~(c)~~	~~On October 13, 2017, we repaid the remaining $19.5 million of loans outstanding to WPC, including accrued interest (Note 13~~).

~~(d)~~

Operating commitments consist of rental obligations under ground leases. Other lease commitments consist of our share of future rents payable pursuant to the advisory agreement for the purpose of leasing office space used for the administration of real estate entities, which is calculated as our allocable portion of WPC’s future minimum rent amounts using the allocation percentages for overhead reimbursement as of September 30, 2017 (~~Note 3~~).


~~(e)~~	~~Represents the estimated liability for the present value of the remaining annual distribution and shareholder servicing fee in connection with our Class C common stock (Note 3~~).


~~(f)~~	Represents deferred acquisition fees due to our Advisor as a result of our acquisitions. These fees are scheduled to be paid in three equal annual installments following the quarter in which a property was purchased.


~~(g)~~	Represents the amount of future obligations estimated for the removal of asbestos and environmental waste in connection with certain of our acquisitions, payable upon the retirement or sale of the assets.

~~Amounts in the table~~Certain amounts disclosed above ~~that relate to our foreign operations~~ are based on the exchange rate of the local currencies at as of September 30, ~~2017~~,2021, which consisted primarily of the euro and Norwegian krone and, to a lesser extent, the British pound sterling. At ~~September 30, 2017, we had no material capital lease obligations for which we were the lessee, either individually or in the aggregate.~~

~~CPA~~^®~~:18 – Global 9/30/2017 10-Q~~– 51

~~Equity Method Investment~~

We have an interest in an unconsolidated investment that relates to a joint venture for the development of self-storage facilities in Canada. This investment is jointly owned with a third party, which is also the general partner. At September 30, 2017, the total equity investment balance for these properties was $21.2 million. The joint venture also had total third-party recourse debt of $20.3 million.

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 use FFO, MFFO, and Adjusted MFFO, which are non-GAAP measures. We believe that 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 FFO, MFFO, and Adjusted MFFO and reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are provided below.

FFO ~~MFFO, and Adjusted MFFO~~

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

CPA:18 – Global 9/30/2021 10-Q– 47

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~~restated in ~~February 2004.~~December 2018. 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 from real estate assets; 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. However, NAREIT’s definition of FFO does not distinguish between the conventional method of equity accounting and the hypothetical liquidation at book value method of accounting for unconsolidated partnerships and jointly owned investments.

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.improvements. 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 indicators exist. Then a two-step process is performed, of which first is to determine whether an asset is impaired by comparing the carrying value, or book value, to 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, then measure the impairment loss as the excess of the carrying value over its estimated fair value. It should be noted, 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

MFFO

~~CPA~~^®~~:18 – Global 9/30/2017 10-Q~~– 52

described above due to the fact that impairments are based on estimated future undiscounted cash flows, it could be difficult to recover any impairment charges. However, FFO, MFFO, and Adjusted 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 measures FFO, MFFO, and Adjusted MFFO and the adjustments to GAAP in calculating FFO, MFFO, and Adjusted 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 changes to GAAP accounting for real estate subsequent to the establishment of NAREIT’s definition of FFO have prompted an increase in cash-settled expenses, such as acquisition fees 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-traded 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~~non-traded REITs are unique in that they have a limited life with targeted exit strategies within a relatively limited time frame after acquisition activity ceases. We currently 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) beginning in April 2022, which is seven years following the closing of our initial public offering. Due to the above factors and other unique features of publicly registered, non-traded REITs, the ~~Investment Program Association,~~Institute for Portfolio Alternatives (the “IPA”), an industry trade group, has standardized a measure known as MFFO, which the ~~Investment Program Association~~IPA has recommended as a supplemental measure for publicly registered non-traded REITs and which we believe to be another appropriate non-GAAP measure to reflect ~~the operating performance of a non-traded REIT having the characteristics described above.~~our operations. 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(as currently ~~intended. We believe that, because~~intended). Since 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~~we believe that ~~affect our operations only in periods in which properties are acquired, MFFO can provide, on a going forward basis,~~it provides 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~~initial property-acquisition phase. We believe that MFFO ~~we believe we are presenting useful information that assists~~allows investors and analysts to better assess the sustainability of our operating performance now that our initial public offering ~~has been completed~~is complete and ~~once essentially all of our properties have been acquired.~~the proceeds are invested. We also believe that MFFO is a recognized measure of sustainable operating performance by the non-traded REIT industry. Further, we believe MFFO is useful in comparing the sustainability of our operating performance, with the sustainability of the operating performance of other real estate companies that are not as involved in acquisition activities. 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 ~~Investment Program Association’s~~IPA’s Practice Guideline 2010-01, Supplemental Performance Measure for Publicly Registered, ~~Non-Listed~~Non-Traded REITs: Modified Funds from Operations ~~or the Practice Guideline,~~(the “Practice Guideline”), issued ~~by the Investment Program Association~~ in November 2010. The Practice Guideline defines MFFO as FFO further adjusted for the following items, included in the determination of GAAP net income, as applicable: acquisition fees and expenses; amounts relating to ~~deferred rent receivables~~straight-line rents 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 accrual 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, 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 that are unrealized and may not ultimately be realized.

~~CPA~~^®:CPA:18 – Global 9/30/~~2017~~2021 10-Q– 5348

Our MFFO calculation complies with the ~~Investment Program Association’s~~IPA’s Practice Guideline described ~~above. In calculating MFFO, we exclude acquisition-related expenses,~~above and is adjusted for certain items, such as accretion of discounts and amortizations of premiums on borrowings (as such adjustments are comparable to the permitted adjustments for debt investments), allowance for credit losses, non-cash accretion of environmental liabilities and 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 asROU assets, which management believes is helpful in assessing our 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 income in determining cash flow from operating activities.performance.

Our management uses MFFO ~~and the adjustments used to calculate it~~ in order to evaluate our performance against other non-traded REITs, which also have limited lives with ~~short and~~ defined acquisition periods and targeted exit ~~strategies shortly thereafter.~~strategies. 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 MFFO and the adjustments used to calculate it allow us to present our performance in a manner that takes into account certain characteristics unique to non-traded REITs, such as their limited life, defined acquisition period, and targeted exit strategy, and is therefore a useful measure for 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.

Adjusted MFFO

In addition, our management uses Adjusted MFFO as another measure of sustainable operating performance. Adjusted MFFO adjusts MFFO for deferred income tax expenses and benefits, which are non-cash items that may cause short-term fluctuations in net income, but have no impact on current period cash flows. Additionally, we adjust MFFO to reflect the realized gains/losses on the settlement of foreign currency derivatives to arrive at Adjusted MFFO. Foreign currency derivatives are a fundamental part of our operations in that they help us manage the foreign currency exposure we have associated with cash flows from our international investments.

FFO, MFFO, and Adjusted MFFO

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, MFFO, and Adjusted MFFO the same way, so comparisons with other REITs may not be meaningful. Furthermore, FFO, MFFO, and Adjusted MFFO are not necessarily indicative of cash flow available to fund cash needs and should not be considered as an alternative to net income 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, MFFO, and Adjusted MFFO should be reviewed in conjunction with other GAAP measurements as an indication of our performance.

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

~~CPA~~^®:CPA:18 – Global 9/30/~~2017~~2021 10-Q– 5449

FFO, MFFO, and Adjusted MFFO were as follows (in thousands):

Three Months Ended September 30, Nine Months Ended September 30,
2017 2016 2017 2016
Net income (loss) attributable to CPA^®:18 – Global
$ 9,821
$ (4,081 ) $ 16,224
$ (16,490 )
Adjustments:
Depreciation and amortization of real property 18,999
20,978
56,813
63,078
Loss on sale of real estate, net of tax —
—
—
63
Proportionate share of adjustments to equity in net loss of partially owned entities to arrive at FFO 125
—
228
—
Proportionate share of adjustments for noncontrolling interests to arrive at FFO (1,684 ) (1,600 ) (4,852 ) (4,792 )
Total adjustments 17,440
19,378
52,189
58,349
FFO attributable to CPA^®:18 – Global (as defined by NAREIT)
27,261
15,297
68,413
41,859
Adjustments:
Unrealized (gains) losses on foreign currency, derivatives, and other (5,266 ) 680
(15,768 ) 1,276
Straight-line and other rent adjustments^(a)
(1,697 ) (1,127 ) (4,052 ) (3,535 )
Realized gains on foreign currency, derivatives, and other (705 ) (786 ) (2,139 ) (1,890 )
Amortization of premium/discount on debt investments and fair market value adjustments, net (218 ) 330
391
951
Loss on extinguishment of debt —
—
54
—
Above- and below-market rent intangible lease amortization, net ^(b)
(25 ) (124 ) (98 ) (616 )
Acquisition and other expenses^(c)
1
36
47
4,747
Proportionate share of adjustments for noncontrolling interests to arrive at MFFO 53
89
249
208
Total adjustments (7,857 ) (902 ) (21,316 ) 1,141
MFFO attributable to CPA^®:18 – Global
19,404
14,395
47,097
43,000
Adjustments:
Hedging gains 293
343
1,152
1,012
Deferred taxes (3,286 ) 48
(2,979 ) (280 )
Total adjustments (2,993 ) 391
(1,827 ) 732
Adjusted MFFO attributable to CPA^®:18 – Global
$ 16,411
$ 14,786
$ 45,270
$ 43,732


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Net income (loss) attributable to CPA:18 – Global	$	35,411	$	3,303	$	37,888	$	(6,068)
Adjustments:
Gain on sale of real estate, net	(40,332)		(3,285)		(40,332)		(3,285)
Depreciation and amortization of real property	17,256		15,565		51,307		44,755
Proportionate share of adjustments for noncontrolling interests	1,525		(1,618)		(1,850)		(4,667)
Proportionate share of adjustments to losses from equity method investment	—		209		—		443
Total adjustments	(21,551)		10,871		9,125		37,246
FFO (as defined by NAREIT) attributable to CPA:18 – Global	13,860		14,174		47,013		31,178
Adjustments:
Other (gains) and losses (a)	2,797		(997)		2,927		309
Amortization of premiums and discounts	1,020		504		2,082		1,109
Straight-line and other rent adjustments (b)	(513)		(241)		(2,483)		5,560
Acquisition and other expenses	222		16		222		49
Other amortization and non-cash items	212		145		530		364
Above- and below-market rent intangible lease amortization, net (c)	(179)		(177)		(538)		(511)
Allowance for credit losses (d)	—		—		—		4,865
Proportionate share of adjustments for noncontrolling interests (e)	(290)		(169)		(666)		1,082
Proportionate share of adjustments to losses from equity method investment	—		(40)		—		(39)
Total adjustments	3,269		(959)		2,074		12,788
MFFO attributable to CPA:18 – Global	17,129		13,215		49,087		43,966
Adjustments:
Tax expense, deferred	(253)		(484)		(2,715)		(1,046)
Hedging gains	87		285		155		1,243
Total adjustments	(166)		(199)		(2,560)		197
Adjusted MFFO attributable to CPA:18 – Global	$	16,963	$	13,016	$	46,527	$	44,163

__________

~~(a)~~

Under GAAP, rental receipts are allocated to periods using an accrual basis. This may result in timing of 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, and Adjusted 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)~~

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, and Adjusted MFFO provides useful supplemental information on the performance of the real estate.

(a)Primarily comprised of gains and losses on (i) foreign currency movements, (ii) derivatives, and (iii) extinguishment of debt. Amount for the nine months ended September 30, 2020 includes a $2.8 million loss to write off the value added taxes receivable related to our previous investment in Ghana, as collectibility was no longer deemed probable.

(b)Amount for the nine months ended September 30, 2020 includes a $7.0 million write-off of straight-line rent receivables (Note 2). Under GAAP, rental receipts are recorded on a straight-line basis over the life of the lease. This may result in timing of income recognition that is significantly different than on an accrual basis.

(c)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 and Adjusted MFFO provide useful supplemental information on the performance of the real estate.

(d)During the nine months ended September 30, 2020, we recorded an allowance for credit losses due to changes in expected economic conditions (Note 5).

(e)The three and nine months ended September 30, 2020 includes losses related to the litigation settlement with the joint venture partner on our previously owned Ghana investment.

~~CPA~~^®:CPA:18 – Global 9/30/~~2017~~2021 10-Q– 5550

~~(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-traded REITs that have completed their acquisition activity and have other similar operating characteristics. By excluding expensed acquisition costs, management believes MFFO and Adjusted MFFO provide 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 expenses included in the determination of net income (loss), which is 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.

~~CPA~~^®~~:18 – Global 9/30/2017 10-Q~~– 56

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Market and Credit Risk

Market risk is the exposure to loss resulting from changes in interest rates, foreign currency exchange rates, and equity prices. ~~The primary risks that we~~We are exposed to ~~are~~ interest rate risk and foreign currency exchange ~~risk.~~ risk, however, we generally do not use derivative instruments to hedge credit/market risks or for speculative purposes. From time to time, we may enter into foreign currency forward contracts and collars to hedge our foreign currency cash flow exposures.

The impact of the COVID-19 pandemic both in the Unites States and globally continues to cause uncertainty and volatility in financial markets, including interest rates and foreign currency exchange rates. The outbreak is expected to have a continued adverse impact on market conditions for the foreseeable future and to trigger a period of global economic slowdown with no known duration. At September 30, 2021, our net lease portfolio (which excludes operating properties) had the following concentrations (as a percentage of our ABR) for industry types with heightened risk as a result of the COVID-19 pandemic:

•13.6% related to student housing (net lease) properties;

•12.9% related to hotel and leisure properties;

•4.8% related to retail facilities (primarily from convenience and wholesale stores); and

•3.2% related to advertising, printing, and publishing.

There may be an impact across all industries and geographic regions in which our tenants operate as a result of the COVID-19 pandemic. Given the significant uncertainty around the duration and severity of the COVID-19 pandemic, we are unable to predict the impact it will have on our tenants’ continued ability to pay rent.

We are also exposed to further market risk as a result of tenant concentrations in certain industries and/or geographic regions, since adverse market factors (such as the COVID-19 pandemic) can affect the ability of tenants in a particular industry/region to meet their respective lease obligations. In order to manage this risk, our Advisor views our collective tenant roster as a portfolio and attempts to diversify such 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 forward contracts and collars to hedge our foreign currency cash flow exposures.

Interest Rate Risk

The values of our real estate, related fixed-rate debt obligations, and notes receivable ~~investments~~investment are 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 (including the ongoing impact of the COVID-19 pandemic) and changes in the creditworthiness of lessees, which may affect our ability to refinance property-level mortgage debt when balloon payments are scheduled if(if we do not choose to repay the debt when ~~due.~~due). 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 fair value of our 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 have historically attempted to obtain non-recourse ~~mortgage~~secured debt financing on a long-term, fixed-rate basis. However, from time to time, we or our joint investment partners have obtained, and may in the future obtain, variable-rate non-recourse ~~mortgage loans,~~secured debt, and, as a result, we have entered into, and may continue to enter into, interest rate swap agreements or interest rate cap agreements with lenders. Interest rate swap agreements effectively convert the variable-rate debt service obligations of a loan to a fixed rate, while interest rate cap agreements limit the underlying interest rate from exceeding a specified strike rate. Interest rate swaps are agreements in which one party exchanges a stream of interest paymentscounterparties. See Note 8 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 that, where applicable, are designated as cash flow hedgesadditional information on the forecasted interest payments on the debt obligation. The 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, 2017, we estimated that the total fair value of~~ our interest rate swaps and ~~caps, which are included in Other assets, net and Accounts payable, accrued expenses and other liabilities in the consolidated financial statements, was in a net liability position~~caps.

CPA:18 – Global 9/30/2021 10-Q– 51

As of ~~$0.8 million (Note 8~~).

At September 30, ~~2017,~~2021, a significant portion (approximately 83.7%) of our outstanding debt either bore interest at fixed rates, or was swapped or capped to a fixed rate or, in the case of one of our Norwegian investments, inflation-linked to the Norwegian CPI. The annual interest rates on our fixed-rate debt at September 30, 2017 ranged from 1.6% to 5.8%. The contractual annual interest rates on our variable-rate debt at September 30, 2017 ranged from 1.6% to 5.1%.rate. Our debt obligations are more fully described in Note 9 and Liquidity and Capital Resources — Summary of Financing in Item 2 above. The following table presents principal cash outflows for the remainder of ~~2017,~~2021, each of the next four calendar years following December 31, ~~2017,~~2021, and thereafter, based upon expected maturity dates of our debt obligations outstanding at as of September 30, ~~2017~~2021 (in thousands):

2017 ^(a)
(Remainder)
2018 2019 2020 2021 Thereafter Total
Fair value
Fixed-rate debt^(b)
$ 1,376
$ 4,628
$ 5,274
$ 118,994
$ 162,779
$ 839,355

$ 1,132,406

$ 1,139,281
Variable rate debt ^(b)
$ 389
$ 23,822
$ 1,873
$ 7,617
$ 11,228
$ 95,688

$ 140,617

$ 153,047


	2021 (remainder)		2022		2023		2024		2025		Thereafter		Total		Fair Value
Fixed-rate debt (a)	$	43,747	$	116,111	$	156,499	$	182,484	$	298,870	$	91,103	$	888,814	$	890,465
Variable rate debt (a)	$	4,829	$	69,557	$	211,278	$	22,458	$	44,027	$	11,290	$	363,439	$	374,349

__________


~~(a)~~	Excludes $19.5 million, including accrued interest, of loan proceeds from WPC, in aggregate, used to partially finance a new investment and the final payment to the developer for a build-to-suit project (~~Note 3). On October 13, 2017, we repaid the remaining $19.5 million of loans outstanding to WPC, including accrued interest (Note 13~~).


~~(b)~~	~~Amounts are based on the exchange rate at September 30, 2017, as applicable.~~

(a)Amounts are based on the exchange rate as of September 30, 2021, as applicable.

~~CPA~~^®~~:18 – Global 9/30/2017 10-Q~~– 57

The estimated fair value of our fixed-rate debt and variable-rate debt ~~which either~~(which have ~~effectually~~effectively been converted to a fixed rate through the use of interest rate ~~swaps or, in the case of one our Norwegian investments,~~swaps) is ~~inflation-linked to the Norwegian CPI, is~~marginally affected by changes in interest rates. A decrease or increase in interest rates of 1% would change the estimated fair value of this debt atas of September 30, ~~2017~~2021 by an aggregate increase of ~~$58.3~~$23.9 million or an aggregate decrease of ~~$64.5~~$31.0 million, respectively. Annual interest expense on our unhedged variable-rate debt atas of September 30, ~~2017~~2021 would increase or decrease by ~~$0.4~~$2.0 million for each respective 1% change in annual interest rates.

As more fully described under Liquidity and Capital Resources — Summary of Financing in Item 2 above, a portion of our variable-rate debt in the table above bore interest at fixed rates at as of September 30, ~~2017~~,2021, 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.

Foreign Currency Exchange Rate Risk

We own international investments, primarily in Europe and, as a result, are subject to risk from the effects of exchange rate movements in various foreign currencies, primarily the euro, ~~and~~ the Norwegian krone, and, to a lesser extent, the British pound sterling, which may affect future costs and cash flows. ~~Although most of our foreign investments through the second quarter of 2017 were conducted in these currencies, we~~We have obtained, and may ~~conduct business in other currencies~~ in the ~~future. We manage~~future obtain, non-recourse mortgage financing in the local currency. Volatile market conditions arising from the COVID-19 global pandemic may result in significant fluctuations in foreign currency exchange ~~rate movements by generally placing both our~~rates. To the extent that currency fluctuations increase or decrease rental revenues, as translated to U.S. dollars, the change in debt service ~~obligation~~(comprised of principal and interest, excluding balloon payments), as translated to U.S. dollars, will partially offset the ~~lender~~effect of fluctuations in revenue and, to some extent, mitigate the risk from changes in foreign currency exchange rates. We estimate that, for a 1% increase or decrease in the exchange rate between the euro, Norwegian krone, or British pound sterling, and the ~~tenant’s rental obligation to us~~U.S. dollar, there would be a corresponding change in the ~~same currency. This reduces~~annual projected estimated cash flow (scheduled future rental revenues, net of scheduled future debt service payments for the next 12 months) for our ~~overall exposure to~~consolidated foreign operations at September 30, 2021 of $0.4 million for the ~~actual equity that we have invested~~euro and less than $0.1 million for both the ~~equity portion~~Norwegian krone and British pound sterling, excluding the impact of our ~~cash flow.~~ derivative instruments.

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), 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 have obtained, and may in the future obtain, non-recourse mortgage and bond financing in local currencies. To the extent that currency fluctuations increase or decrease rental revenues, as translated to U.S. dollars, 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 inenter into foreign currency ~~exchange rates.~~

~~The June 23, 2016 referendum by voters in the United Kingdom~~forward contracts and collars to exit the European Union, a process commonly referred to as “Brexit,” adversely impacted global markets, including the currencies, and has resulted in a decline in the value of the British pound sterling as compared to the U.S. dollar. Volatility in exchange rates is expected to continue as the United Kingdom negotiates its likely exit from the European Union. As of September 30, 2017, 4% and 35% of our total pro rata ABR was from the United Kingdom and other European Union countries, respectively. Any impact from Brexit on us will depend, in part, on the outcome of the related tariff, trade, regulatory, and other negotiations. Although it is unknown what the result of those negotiations will be, it is possible that new terms may adversely affect our operations and financial results.

Scheduled future minimum rents, exclusive of renewals, under non-cancelable operating leases for our consolidated foreign operations as of September 30, 2017 during the remainder of 2017, each of the next four calendar years following December 31, 2017, and thereafter, are as follows (in thousands):

Lease Revenues ^(a)
2017 (Remainder) 2018 2019 2020 2021 Thereafter Total
Euro ^(b)
$ 10,837
$ 44,128
$ 44,067
$ 43,184
$ 43,092
$ 351,542
$ 536,850
Norwegian krone ^(c)
3,463
13,754
13,770
13,492
12,775
68,783
126,037
British pound sterling ^(d)
813
3,067
3,261
3,021
2,756
12,683
25,601
$ 15,113
$ 60,949
$ 61,098
$ 59,697
$ 58,623
$ 433,008
$ 688,488

~~CPA~~^®~~:18 – Global 9/30/2017 10-Q~~– 58

Scheduled debt service payments (principal and interest) for mortgage notes and bonds payable, for our foreign operations as of September 30, 2017, during the remainder of 2017, each of the next four calendar years following December 31, 2017, and thereafter, are as follows (in thousands):

Debt Service ^{(a) (e)}
2017 (Remainder) 2018 2019 2020 2021 Thereafter Total
Euro ^(b)
$ 4,037
$ 11,677
$ 12,064
$ 96,615
$ 79,394
$ 146,579
$ 350,366
Norwegian krone ^(c)
3,382
6,017
6,017
6,017
50,920
119,070
191,423
British pound sterling ^(d)
253
1,005
1,005
25,484
—
—
27,747
$ 7,672
$ 18,699
$ 19,086
$ 128,116
$ 130,314
$ 265,649
$ 569,536

~~__________~~


~~(a)~~	~~Amounts are based on the applicable exchange rates at~~ ~~September 30, 2017. Contractual rents and debt obligations are denominated in the functional currency of the country where each property is located.~~


~~(b)~~	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 September 30, 2017 of $1.9 million.


~~(c)~~	We estimate that, for a 1% increase or decrease in the exchange rate between the Norwegian krone and the U.S. dollar, there would be a corresponding change in the projected estimated property-level cash flow at September 30, 2017 of $0.7 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 an insignificant corresponding change in the projected estimated property-level cash flow at September 30, 2017.


~~(e)~~	~~Interest on unhedged variable-rate debt obligations was calculated using the applicable annual interest rates and balances outstanding at September 30, 2017.~~

~~As a result of scheduled balloon payments on~~hedge certain of our ~~international debt obligations, projected debt service obligations exceed projected lease revenues in 2020~~foreign currency cash flow exposures. See Note 8 for additional information on our foreign currency forward contracts and 2021 for investments denominated in the euro, in 2020 for the British pound sterling, and after 2020 for the Norwegian krone. 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. If refinancing has not occurred, we would expect to use our cash resources to make these payments, if necessary.collars.

Concentration of Credit Risk

Concentrations of credit risk arise when a number of tenants are engaged in similar business activities or have 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 as we make additional investments.~~risk. While we believe our portfolio is ~~reasonably~~ well-diversified, it does contain concentrations in ~~excess of 10% based on the percentage of~~certain areas. There have been no material changes in our ~~consolidated total revenues or pro rata ABR.~~

~~For the nine months ended September 30, 2017, our consolidated portfolio had the following significant characteristics in excess of 10%, based on the percentage of our consolidated total revenues:~~

~~67% related to domestic properties, which included concentrations of 14% and 12% in Florida and Texas, respectively; and~~

~~33% related to international properties.~~

At September 30, 2017, our net-leased portfolio, which excludes our operating properties, had the following significant property and lease characteristics in excess of 10% in certain areas, based on the percentage of our pro rata ABR as of that date:

~~41% related to domestic properties, which included a~~ concentration of ~~10% in Illinois;~~

~~59% related to international properties, which included a concentration~~credit risk from what was disclosed in the ~~Netherlands of 16% and Norway of 15%;~~2020 Annual Report.

~~50% related to office properties, 14% related to industrial properties, 13% related to warehouse properties, 13% related to retail properties, 10% related to hotel properties; and~~

~~11% related to the banking industry, 10% related to the grocery industry, and 10% related to the hotel, gaming, and leisure industry.~~

~~CPA~~^®:CPA:18 – Global 9/30/~~2017~~2021 10-Q– 5952

Item 4. Controls and Procedures.

Disclosure Controls and Procedures

Our disclosure controls and procedures include internal 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, or~~ 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 as of September 30, ~~2017~~,2021, 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, ~~2017~~2021 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 controls over financial reporting.

~~CPA~~^®:CPA:18 – Global 9/30/~~2017~~2021 10-Q– 6053

PART II — OTHER INFORMATION

Item 2. Unregistered Sales of Equity Securities.

Unregistered Sales of Equity Securities

During the three months ended September 30, ~~2017~~,2021, we issued ~~351,431~~354,821 shares of our Class A common stock to our Advisor as consideration for asset management ~~fees. These shares~~fees, which were issued at our most recently published NAV at the time of ~~$8.24 per share.~~issuance. All shares issued during the three months ended September 30, 2021 were based on a NAV of $8.91 (which was the NAV as of both June 30, 2021 and March 31, 2021). In acquiring our shares, our Advisor represented that such interests were being acquired by it for investment purposes and not with a view to the distribution thereof. Since none of these transactions were considered to have involved a “public offering” within the meaning of Section 4(a)(2) of the Securities Act of 1933, the shares issued were deemed to be exempt from registration. ~~In acquiring~~

All other prior sales of unregistered securities have been reported in our ~~shares, our Advisor represented that such interests were being acquired by it for investment purposes~~previously filed quarterly and ~~not with a view to the distribution thereof~~. ~~From inception~~annual reports on Form 10-Q and ~~through September 30, 2017, we have issued a total of 3,266,723 shares of our Class A common stock to our Advisor as consideration for asset management fees.~~Form 10-K, respectively.

Issuer Purchases of Equity Securities

The following table provides information with respect to repurchases of our common stock pursuant to our redemption plan during the three months ended September 30, ~~2017~~:2021:

Class A Class C
2017 Period
Total number of Class A
shares purchased ^(a)
Average price
paid per share
Total number of Class C
shares purchased ^(a)
Average price
paid per share
Total number of shares
purchased as part of
publicly announced plans or program ^(a)

Maximum number (or
approximate dollar value)of shares that may yet be
purchased under the plans or program ^(a)
July —
$ —
—
$ —
N/A N/A
August —
—
—
—
N/A N/A
September 554,005
8.26
135,340
7.83
N/A N/A
Total 554,005
135,340


	Class A			Class C
2021 Period	Total number of Class A shares purchased (a)	Average price paid per share		Total number of Class C shares purchased (a)	Average price paid per share		Total number of shares purchased as part of publicly announced plans or program (a)	Maximum number (or approximate dollar value)of shares that may yet be purchased under the plans or program (a)
July 1–31	—	$	—	—	$	—	N/A	N/A
August 1–31	—	—		—	—		N/A	N/A
September 1–30	518,432	8.74		580,082	8.99		N/A	N/A
Total	518,432			580,082

___________

~~(a)~~

Represents shares of our Class A and Class C common stock requested to be repurchased under our redemption plan, pursuant to which we may elect to redeem shares at the request of our stockholders, 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. During the three months ended ~~September 30, 2017~~, we redeemed 120 and 23 redemption requests for Class A and Class C common stock, respectively. As of the date of this Report, we have fulfilled all of the valid redemptions requests that we received during the three months ended September 30, 2017. We generally receive fees in connection with share redemptions. The average price paid per share will vary depending on the number of redemption requests that were made during the period, the number of redemption requests that qualify for special circumstances, and the most recently published quarterly NAV.

(a)Represents shares of our Class A and Class C common stock requested to be repurchased under our redemption plan, pursuant to which we may elect to redeem shares at the request of our stockholders, 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. On August 31, 2020, our board of directors approved, effective as of that date, limiting the amount of cash available for our redemption program to the amount reinvested by stockholders in shares of our common stock pursuant to our DRIP (as further detailed in the Form 8-K filed with the SEC on September 1, 2020); however, our board of directors retains the discretion to modify that limitation at any time. During the three months ended September 30, 2021, we received 118 and 43 redemption requests for Class A and Class C common stock, respectively, which included approximately 585,070 and 162,588 shares for $5.0 million and $1.4 million of Class A and Class C common stock, respectively, which remained unfulfilled as of the date of this Report. We generally receive fees in connection with share redemptions. The average price paid per share will vary depending on the number of redemption requests that were made during the period, the number of redemption requests that qualify for special circumstances, and our most recently published quarterly NAVs. For shares redeemed under such special circumstances, the redemption price was the greater of the price paid to acquire the shares from us or 95% of our most recently published quarterly NAVs.

~~CPA~~^®:CPA:18 – Global 9/30/~~2017~~2021 10-Q– 6154

Item 6. Exhibits.

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

Report. Documents other than those designated as being filed herewith are incorporated herein by reference.

Exhibit No.

Description

Method of Filing

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

Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Filed herewith

~~101~~101.INS

~~The following materials from Corporate Property Associates 18 – Global Incorporated’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2017, formatted in~~ XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets at September 30, 2017 and December 31, 2016, (ii) Consolidated Statements of Operations for the three and nine months ended September 30, 2017 and 2016, (iii) Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2017 and 2016, (iv) Consolidated Statements of Equity for the nine months ended September 30, 2017 and 2016, (v) Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2017 and 2016, and (vi) Notes to Consolidated Financial Statements.Instance Document

Filed herewith

101.SCH

XBRL Taxonomy Extension Schema Document

Filed herewith

101.CAL

XBRL Taxonomy Extension Calculation Linkbase Document

Filed herewith

101.DEF

XBRL Taxonomy Extension Definition Linkbase Document

Filed herewith

101.LAB

XBRL Taxonomy Extension Label Linkbase Document

Filed herewith

101.PRE

XBRL Taxonomy Extension Presentation Linkbase Document

Filed herewith

~~CPA~~^®:CPA:18 – Global 9/30/~~2017~~2021 10-Q– 6255

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this ~~report~~Report to be signed on its behalf by the undersigned, thereunto duly authorized.


					Corporate Property Associates 18 – Global Incorporated
Date:			November 8, 2021
				By:	/s/ ToniAnn Sanzone
					ToniAnn Sanzone
					Chief Financial Officer
					(Principal Financial Officer)

Date:			November 8, 2021		~~Corporate Property Associates 18 – Global Incorporated~~
~~Date:~~			~~November 13, 2017~~	By:	/s/ Arjun Mahalingam
				~~By:~~	~~/s/ Mallika Sinha~~Arjun Mahalingam
					~~Mallika Sinha~~
			~~Chief Financial Officer~~
			~~(Principal Financial Officer)~~

~~Date:~~	~~November 13, 2017~~
		~~By:~~	~~/s/ Kristin Sabia~~
			~~Kristin Sabia~~
			Chief Accounting Officer
					(Principal Accounting Officer)

~~CPA~~^®:CPA:18 – Global 9/30/~~2017~~2021 10-Q– 6356

EXHIBIT INDEX

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

Report. Documents other than those designated as being filed herewith are incorporated herein by reference.

Exhibit No.

Description

Method of Filing

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

Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Filed herewith

~~101~~101.INS

Instance Document

Filed herewith

101.SCH

XBRL Taxonomy Extension Schema Document

Filed herewith

101.CAL

XBRL Taxonomy Extension Calculation Linkbase Document

Filed herewith

101.DEF

XBRL Taxonomy Extension Definition Linkbase Document

Filed herewith

101.LAB

XBRL Taxonomy Extension Label Linkbase Document

Filed herewith

101.PRE

XBRL Taxonomy Extension Presentation Linkbase Document

Filed herewith



	CPA^®:18 – Global Stockholders
										Additional Paid-In Capital			Distributions and Accumulated Losses			Accumulated Other Comprehensive Loss			Total CPA^®:18 – Global Stockholders			Noncontrolling Interests
	Common Stock
	Class A					Class C
	Shares		Amount			Shares		Amount																	Total
Balance at January 1, 2017	107,460,081		$	107		30,469,144		$	30	$	1,222,139		$	(360,673	)	$	(61,704	)	$	799,899		$	66,005		$	865,904
Shares issued	3,198,924		3			1,034,160		1		33,431									33,435						33,435
Shares issued to affiliate	1,037,527		1							8,275									8,276						8,276
Shares issued to directors	12,658		—							100									100						100
Contributions from noncontrolling interests																			—			3,143			3,143
Distributions to noncontrolling interests																			—			(11,985		)	(11,985		)
Distributions declared ($0.4689 and $0.4146 per share to Class A and Class C, respectively)													(64,180		)				(64,180		)				(64,180		)
Net income													16,224						16,224			6,568			22,792
Other comprehensive income:
Foreign currency translation adjustments																32,935			32,935			4,599			37,534
Realized and unrealized loss on derivative instruments																(6,426		)	(6,426		)				(6,426		)
Repurchase of shares	(1,374,254	)	(1		)	(262,864	)	—		(12,965		)							(12,966		)				(12,966		)
Balance at September 30, 2017	110,334,936		$	110		31,240,440		$	31	$	1,250,980		$	(408,629	)	$	(35,195	)	$	807,297		$	68,330		$	875,627

Balance at January 1, 2016	103,214,083		$	103		29,536,899		$	30	$	1,178,990		$	(247,995	)	$	(50,316	)	$	880,812		$	71,896		$	952,708
Shares issued	2,900,565		3			939,990		—		32,450									32,453						32,453
Shares issued to affiliate	913,907		1							7,390									7,391						7,391
Shares issued to directors	12,658		—							100									100						100
Contributions from noncontrolling interests																			—			41			41
Distributions to noncontrolling interests																			—			(11,588		)	(11,588		)
Distributions declared ($0.4689 and $0.4089 per share to Class A and Class C, respectively)													(61,599		)				(61,599		)				(61,599		)
Net loss													(16,490		)				(16,490		)	6,730			(9,760		)
Other comprehensive loss:
Foreign currency translation adjustments																6,449			6,449			2,290			8,739
Realized and unrealized loss on derivative instruments																(4,678		)	(4,678		)				(4,678		)
Repurchase of shares	(705,234	)	(1		)	(286,874	)	—		(7,895		)							(7,896		)				(7,896		)
Balance at September 30, 2016	106,335,979		$	106		30,190,015		$	30	$	1,211,035		$	(326,084	)	$	(48,545	)	$	836,542		$	69,369		$	905,911



	September 30, 2017		December 31, 2016
Due to Affiliate
Loan from WPC, including accrued interest	$	19,508	$	27,580
Deferred acquisition fees, including accrued interest	5,944		15,305
Accounts payable and other	2,596		2,454
Asset management fees payable	967		866
Current acquisition fees	248		84
Shareholder servicing fee liability	—		7,422
	$	29,263	$	53,711



	Nine Months Ended September 30, 2017
Beginning balance	$	182,612
Placed into service	(185,397		)
Capitalized funds	84,637
Foreign currency translation adjustments	16,459
Capitalized interest	4,102
Ending balance	$	102,413



	Nine Months Ended September 30, 2017
Balance at January 1, 2017	$	23,526
Foreign currency translation	2,213
Other	708
Balance at September 30, 2017	$	26,447



Derivatives Designated as Hedging Instruments	Balance Sheet Location	Asset Derivatives Fair Value at				Liability Derivatives Fair Value at
Derivatives Designated as Hedging Instruments	Balance Sheet Location	September 30, 2017		December 31, 2016		September 30, 2017			December 31, 2016
Foreign currency forward contracts	Other assets, net	$	2,721	$	5,502	$	—		$	—
Interest rate swaps	Other assets, net	329		393		—			—
Foreign currency collars	Other assets, net	111		1,284		—			—
Interest rate caps	Other assets, net	1		1		—			—
Foreign currency collars	Accounts payable, accrued expenses and other liabilities	—		—		(2,648		)	(33		)
Interest rate swaps	Accounts payable, accrued expenses and other liabilities	—		—		(1,104		)	(1,151		)
Derivatives Not Designated as Hedging Instruments
Foreign currency collars	Accounts payable, accrued expenses and other liabilities	—		—		(321		)	—
Total		$	3,162	$	7,180	$	(4,073	)	$	(1,184	)



		Amount of Gain (Loss) on Derivatives Recognized in Income
Derivatives Not in Cash Flow Hedging Relationships	Location of Gain (Loss) Recognized in Income	Three Months Ended September 30,						Nine Months Ended September 30,
Derivatives Not in Cash Flow Hedging Relationships	Location of Gain (Loss) Recognized in Income	2017			2016			2017			2016
Foreign currency collars	Other income and (expenses)	$	(193	)	$	(11	)	$	(238	)	$	(21	)
Interest rate swaps	Interest expense	(21		)	—			(44		)	—
Derivatives in Cash Flow Hedging Relationships
Interest rate swaps ^(a)	Interest expense	7			5			15			1
Foreign currency collars	Other income and (expenses)	(1		)	—			(5		)	—
Total		$	(208	)	$	(6	)	$	(272	)	$	(20	)



Years Ending December 31,	Total
2017 (remainder)	$	1,765
2018	28,450
2019	7,147
2020	126,611
2021	174,007
Thereafter through 2039	935,043
	1,273,023
Unamortized deferred financing costs	(8,506		)
Unamortized premium, net	925
Total	$	1,265,442



	Nine Months Ended September 30, 2017					Nine Months Ended September 30, 2016
	Basic and Diluted Weighted-Average Shares Outstanding	Allocation of Net Income		Basic and Diluted Net Income Per Share		Basic and Diluted Weighted-Average Shares Outstanding	Allocation of Net Loss			Basic and Diluted Net Loss Per Share
Class A common stock	109,507,006	$	12,936	$	0.12	105,148,891	$	(12,569	)	$	(0.12	)
Class C common stock	31,041,072	3,288		0.11		29,964,756	(3,921		)	(0.13		)
Net income (loss) attributable to CPA^®:18 – Global		$	16,224				$	(16,490	)



	Three Months Ended September 30, 2017
	Gains and Losses on Derivative Instruments			Foreign Currency Translation Adjustments			Total
Beginning balance	$	1,306		$	(46,389	)	$	(45,083	)
Other comprehensive income before reclassifications	(2,010		)	13,839			11,829
Amounts reclassified from accumulated other comprehensive loss to:
Interest expense	159			—			159
Other income and (expenses)	(294		)	—			(294		)
Net current-period Other comprehensive income	(2,145		)	13,839			11,694
Net current-period Other comprehensive income attributable to noncontrolling interests	—			(1,806		)	(1,806		)
Ending balance	$	(839	)	$	(34,356	)	$	(35,195	)



	September 30, 2017			December 31, 2016
Number of net-leased properties ^(a)	59			59
Number of operating properties ^(b)	78			76
Number of tenants ^(a)	99			103
Total square footage (in thousands)	16,838			16,259
Occupancy — Single-tenant	99.7		%	100.0		%
Occupancy — Multi-tenant	93.4		%	98.4		%
Occupancy — Self-storage	91.6		%	91.0		%
Occupancy — Multi-family	92.9		%	93.9		%
Weighted-average lease term — Single-tenant properties (in years)	10.8			10.8
Weighted-average lease term — Multi-tenant properties (in years)	7.1			7.1
Number of countries	11			11
Total assets (consolidated basis in thousands)	$	2,350,525		$	2,209,446
Net investments in real estate (consolidated basis in thousands) ^(c)	2,082,135			1,953,153
Debt, net —pro rata (in thousands)	1,173,921			1,066,603



Tenant/Lease Guarantor	Property Type	Tenant Industry	Location	ABR		Percent
Rabobank Groep NV ^(a)	Office	Banking	Eindhoven, Netherlands	$	5,988	6	%
Sweetheart Cup Company, Inc.	Warehouse	Containers, Packaging, and Glass	University Park, Illinois	5,646		6	%
Konzum d.d. ^{(a) (b)}	Retail	Grocery	Split, Zadar, Zagreb (3), Croatia	5,355		6	%
Albion Resorts ^(a)	Hotel	Hotel, Gaming, and Leisure	Albion, Mauritius	5,162		6	%
Siemens AS ^(a)	Office	Capital Equipment	Oslo, Norway	4,774		5	%
Bank Pekao S.A. ^(a)	Office	Banking	Warsaw, Poland	4,453		5	%
COOP Ost AS ^(a)	Retail	Grocery	Oslo, Norway	3,972		4	%
State Farm Automobile Co.	Office	Insurance	Austin, Texas	3,766		4	%
Royal Vopak NV ^(a)	Office	Oil and Gas	Rotterdam, Netherlands	3,691		4	%
Board of Regents, State of Iowa	Office	Sovereign and Public Finance	Coralville and Iowa City, Iowa	3,512		4	%
Total				$	46,319	50	%



Estimated Completion Date	Property Type	Location ^{(a) (b)}	Ownership Percentage ^(c)		Number of Buildings	Square Footage	Estimated Project Totals ^(d)		Amount Funded ^(d)
Q2 2018	Self Storage	Toronto, Canada	89.9	%	1	119,000	$	16,978	$	6,905
Q3 2018	Self Storage	Vaughan, Canada	90.0	%	1	95,475	15,590		3,046
Q4 2018	Self Storage	Vaughan, Canada	90.0	%	1	105,150	15,827		11,917
					3	319,625	$	48,395	$	21,868



	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Debt, net — principal ^(a)	$	1,273,023	$	22,827	$	109,822	$	364,491	$	775,883
Interest on borrowings and deferred acquisition fees	307,253		50,880		98,606		81,957		75,810
Capital commitments ^(b)	151,214		89,579		61,635		—		—
Loan from WPC, including accrued interest ^(c)	19,508		19,508		—		—		—
Operating and other lease commitments ^(d)	12,536		756		1,513		869		9,398
Annual distribution and shareholder servicing fee ^(e)	6,145		485		4,278		1,382		—
Deferred acquisition fees — principal ^(f)	5,682		4,893		789		—		—
Asset retirement obligations ^(g)	2,835		—		—		—		2,835
	$	1,778,196	$	188,928	$	276,643	$	448,699	$	863,926



	2017 ^(a) (Remainder)		2018		2019		2020		2021		Thereafter		Total		Fair value
Fixed-rate debt^(b)	$	1,376	$	4,628	$	5,274	$	118,994	$	162,779	$	839,355	$	1,132,406	$	1,139,281
Variable rate debt ^(b)	$	389	$	23,822	$	1,873	$	7,617	$	11,228	$	95,688	$	140,617	$	153,047



Lease Revenues ^(a)	2017 (Remainder)		2018		2019		2020		2021		Thereafter		Total
Euro ^(b)	$	10,837	$	44,128	$	44,067	$	43,184	$	43,092	$	351,542	$	536,850
Norwegian krone ^(c)	3,463		13,754		13,770		13,492		12,775		68,783		126,037
British pound sterling ^(d)	813		3,067		3,261		3,021		2,756		12,683		25,601
	$	15,113	$	60,949	$	61,098	$	59,697	$	58,623	$	433,008	$	688,488



Debt Service ^{(a) (e)}	2017 (Remainder)		2018		2019		2020		2021		Thereafter		Total
Euro ^(b)	$	4,037	$	11,677	$	12,064	$	96,615	$	79,394	$	146,579	$	350,366
Norwegian krone ^(c)	3,382		6,017		6,017		6,017		50,920		119,070		191,423
British pound sterling ^(d)	253		1,005		1,005		25,484		—		—		27,747
	$	7,672	$	18,699	$	19,086	$	128,116	$	130,314	$	265,649	$	569,536



	Class A			Class C
2017 Period	Total number of Class A shares purchased ^(a)	Average price paid per share		Total number of Class C shares purchased ^(a)	Average price paid per share		Total number of shares purchased as part of publicly announced plans or program ^(a)	Maximum number (or approximate dollar value)of shares that may yet be purchased under the plans or program ^(a)
July	—	$	—	—	$	—	N/A	N/A
August	—	—		—	—		N/A	N/A
September	554,005	8.26		135,340	7.83		N/A	N/A
Total	554,005			135,340