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SECURITIES AND EXCHANGE COMMISSION
þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Maryland | 20-8429087 | |
(State of incorporation) | (I.R.S. Employer Identification No.) | |
50 Rockefeller Plaza | ||
New York, New York | 10020 | |
(Address of principal executive office) | (Zip Code) |
(Registrant’s telephone numbers, including area code)
Large accelerated filero | Accelerated filero | Non-accelerated filerþ(Do not check if a smaller reporting company) | Smaller reporting companyo |
Page No. | ||||||||
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29 | ||||||||
30 | ||||||||
31 | ||||||||
32 | ||||||||
33 | ||||||||
Exhibit 31.1 | ||||||||
Exhibit 31.2 | ||||||||
Exhibit 32 |
CPA®:17 – Global 3/31/2010 10-Q —1
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Item 1. | Financial Statements |
(in thousands, except share and per share amounts)
March 31, 2010 | December 31, 2009 | |||||||
Assets | ||||||||
Investments in real estate: | ||||||||
Real estate, at cost | $ | 411,258 | $ | 326,507 | ||||
Accumulated depreciation | (7,726 | ) | (5,957 | ) | ||||
Net investments in properties | 403,532 | 320,550 | ||||||
Net investment in direct financing leases | 357,220 | 303,250 | ||||||
Real estate under construction | — | 31,037 | ||||||
Equity investments in real estate | 42,039 | 43,495 | ||||||
Net investments in real estate | 802,791 | 698,332 | ||||||
Cash and cash equivalents | 337,857 | 281,554 | ||||||
Intangible assets, net | 77,178 | 46,666 | ||||||
Other assets, net | 37,688 | 41,320 | ||||||
Total assets | $ | 1,255,514 | $ | 1,067,872 | ||||
Liabilities and Equity | ||||||||
Liabilities: | ||||||||
Debt | $ | 366,650 | $ | 300,908 | ||||
Accounts payable, accrued expenses and other liabilities | 6,179 | 4,533 | ||||||
Prepaid and deferred rental income | 16,272 | 13,236 | ||||||
Due to affiliates | 11,709 | 8,383 | ||||||
Distributions payable | 13,945 | 11,675 | ||||||
Total liabilities | 414,755 | 338,735 | ||||||
Commitments and contingencies (Note 11) | ||||||||
Equity: | ||||||||
CPA®:17 — Global shareholders’ equity: | ||||||||
Preferred stock, $0.001 par value; 50,000,000 shares authorized; none issued | — | — | ||||||
Common stock, $0.001 par value; 400,000,000 shares authorized; 94,818,474 and 80,135,401 shares issued, respectively | 97 | 82 | ||||||
Additional paid-in capital | 848,714 | 718,057 | ||||||
Distributions in excess of accumulated earnings | (60,940 | ) | (53,118 | ) | ||||
Accumulated other comprehensive loss | (14,874 | ) | (4,902 | ) | ||||
772,997 | 660,119 | |||||||
Less, treasury stock at cost, 354,702 and 248,833 shares, respectively | (3,298 | ) | (2,314 | ) | ||||
Total CPA®:17 — Global shareholders’ equity | 769,699 | 657,805 | ||||||
Noncontrolling interests | 71,060 | 71,332 | ||||||
Total equity | 840,759 | 729,137 | ||||||
Total liabilities and equity | $ | 1,255,514 | $ | 1,067,872 | ||||
Note: | Substantially all our assets and liabilities are held through our operating partnership. See Note 2 for further information. |
CPA®:17 – Global 3/31/2010 10-Q —2
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(in thousands, except share and per share amounts)
Three months ended March 31, | ||||||||
2010 | 2009 | |||||||
Revenues | ||||||||
Rental income | $ | 8,412 | $ | 4,271 | ||||
Interest income from direct financing leases | 9,367 | 3,765 | ||||||
Interest income from commercial mortgage-backed securities | 517 | 673 | ||||||
18,296 | 8,709 | |||||||
Expenses | ||||||||
Depreciation and amortization | (2,332 | ) | (1,086 | ) | ||||
General and administrative | (977 | ) | (1,242 | ) | ||||
Property expenses | (1,195 | ) | (1,362 | ) | ||||
(4,504 | ) | (3,690 | ) | |||||
Other Income and Expenses | ||||||||
Income from equity investments in real estate | 398 | 391 | ||||||
Other income and (expenses) | 64 | (1,562 | ) | |||||
Interest expense | (5,316 | ) | (2,092 | ) | ||||
(4,854 | ) | (3,263 | ) | |||||
Income before income taxes | 8,938 | 1,756 | ||||||
Benefit from (provision for) income taxes | 468 | (241 | ) | |||||
Net Income | 9,406 | 1,515 | ||||||
Less: Net income attributable to noncontrolling interests | (3,283 | ) | (1,217 | ) | ||||
Net Income Attributable to CPA®:17 — Global Shareholders | $ | 6,123 | $ | 298 | ||||
Earnings Per Share | ||||||||
Net income attributable to CPA®:17 — Global shareholders | $ | 0.07 | $ | 0.01 | ||||
Weighted Average Shares Outstanding | 87,261,461 | 38,152,272 | ||||||
Distributions Declared Per Share | $ | 0.1600 | $ | 0.1562 | ||||
CPA®:17 – Global 3/31/2010 10-Q —3
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(in thousands)
Three months ended March 31, | ||||||||
2010 | 2009 | |||||||
Net Income | $ | 9,406 | $ | 1,515 | ||||
Other Comprehensive Loss: | ||||||||
Foreign currency translation adjustment | (9,643 | ) | (2,461 | ) | ||||
Change in unrealized loss on derivative instrument | (1,490 | ) | (2 | ) | ||||
(11,133 | ) | (2,463 | ) | |||||
Comprehensive loss | (1,727 | ) | (948 | ) | ||||
Amounts Attributable to Noncontrolling Interests: | ||||||||
Net income | (3,283 | ) | (1,217 | ) | ||||
Foreign currency translation adjustment | 638 | 795 | ||||||
Change in unrealized loss on derivative instruments | 523 | — | ||||||
Comprehensive income attributable to noncontrolling interests | (2,122 | ) | (422 | ) | ||||
Comprehensive Loss Attributable to CPA®:17 — Global Shareholders | $ | (3,849 | ) | $ | (1,370 | ) | ||
CPA®:17 – Global 3/31/2010 10-Q —4
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For the three months ended March 31, 2010 and the year ended December 31, 2009
(in thousands, except share amounts)
CPA®:17 — Global Shareholders | ||||||||||||||||||||||||||||||||||||
Distributions | Accumulated | Total | ||||||||||||||||||||||||||||||||||
Additional | in Excess of | Other | CPA®:17 — | |||||||||||||||||||||||||||||||||
Common | Paid-In | Accumulated | Comprehensive | Treasury | Global | Noncontrolling | ||||||||||||||||||||||||||||||
Shares | Stock | Capital | Earnings | Loss | Stock | Shareholders | Interests | Total | ||||||||||||||||||||||||||||
Balance at January 1, 2009 | 34,625,497 | $ | 35 | $ | 310,732 | $ | (11,056 | ) | $ | (2,288 | ) | $ | $ | 297,423 | $ | 30,074 | $ | 327,497 | ||||||||||||||||||
Shares issued, net of offering costs | 45,244,803 | 45 | 404,651 | 404,696 | 404,696 | |||||||||||||||||||||||||||||||
Shares issued to affiliates | 265,101 | 2 | 2,674 | 2,676 | 2,676 | |||||||||||||||||||||||||||||||
Contributions from noncontrolling interests | — | 103,364 | 103,364 | |||||||||||||||||||||||||||||||||
Distributions declared ($0.6324 per share) | (34,361 | ) | (34,361 | ) | (34,361 | ) | ||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | (71,946 | ) | (71,946 | ) | ||||||||||||||||||||||||||||||||
Net loss (income) | (7,701 | ) | (7,701 | ) | 9,881 | 2,180 | ||||||||||||||||||||||||||||||
Other comprehensive loss: | ||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | (848 | ) | (848 | ) | 166 | (682 | ) | |||||||||||||||||||||||||||||
Change in unrealized loss on derivative instrument | (261 | ) | (261 | ) | (207 | ) | (468 | ) | ||||||||||||||||||||||||||||
Impairment loss on commercial mortgage-backed securities | (1,505 | ) | (1,505 | ) | (1,505 | ) | ||||||||||||||||||||||||||||||
Repurchase of shares | (248,833 | ) | (2,314 | ) | (2,314 | ) | (2,314 | ) | ||||||||||||||||||||||||||||
Balance at December 31, 2009 | 79,886,568 | 82 | 718,057 | (53,118 | ) | (4,902 | ) | (2,314 | ) | 657,805 | 71,332 | 729,137 | ||||||||||||||||||||||||
Shares issued, net of offering costs | 14,621,409 | 15 | 130,040 | 130,055 | 130,055 | |||||||||||||||||||||||||||||||
Shares issued to affiliates | 61,664 | 617 | 617 | 617 | ||||||||||||||||||||||||||||||||
Distributions declared ($0.1600 per share) | (13,945 | ) | (13,945 | ) | (2,394 | ) | (16,339 | ) | ||||||||||||||||||||||||||||
Net income | 6,123 | 6,123 | 3,283 | 9,406 | ||||||||||||||||||||||||||||||||
Other comprehensive loss: | ||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | (9,005 | ) | (9,005 | ) | (638 | ) | (9,643 | ) | ||||||||||||||||||||||||||||
Change in unrealized loss on derivative instrument | (967 | ) | (967 | ) | (523 | ) | (1,490 | ) | ||||||||||||||||||||||||||||
Repurchase of shares | (105,869 | ) | (984 | ) | (984 | ) | (984 | ) | ||||||||||||||||||||||||||||
Balance at March 31, 2010 | 94,463,772 | $ | 97 | $ | 848,714 | $ | (60,940 | ) | $ | (14,874 | ) | $ | (3,298 | ) | $ | 769,699 | $ | 71,060 | $ | 840,759 | ||||||||||||||||
CPA®:17 – Global 3/31/2010 10-Q —5
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(in thousands)
Three months ended March 31, | ||||||||
2010 | 2009 | |||||||
Cash Flows — Operating Activities | ||||||||
Net income | $ | 9,406 | $ | 1,515 | ||||
Adjustments to net income: | ||||||||
Depreciation and amortization, including intangible assets | 2,334 | 1,086 | ||||||
Straight-line rent adjustments and amortization of rent-related intangibles | (1,157 | ) | (520 | ) | ||||
Income from equity investment in real estate in excess of distributions received | (56 | ) | (256 | ) | ||||
Issuance of shares to affiliate in satisfaction of fees due | 617 | 458 | ||||||
Amortization of discount on commercial mortgage-backed securities | — | 156 | ||||||
Realized loss on foreign currency transactions | — | 1,692 | ||||||
Unrealized loss on foreign currency transactions | 65 | — | ||||||
Allowance for uncollectible amounts | — | 878 | ||||||
Increase in accounts receivable and prepaid expenses | (587 | ) | (958 | ) | ||||
Increase in accounts payable and accrued expenses | 841 | 43 | ||||||
Increase (decrease) in prepaid and deferred rental income | 3,287 | (665 | ) | |||||
Increase in due to affiliates | 2,015 | 177 | ||||||
Change in other operating assets and liabilities, net | (1,435 | ) | (131 | ) | ||||
Net cash provided by operating activities | 15,330 | 3,475 | ||||||
Cash Flows — Investing Activities | ||||||||
Distributions received from equity investments in real estate in excess of equity income | 332 | — | ||||||
Acquisitions of real estate and direct financing leases and other capital expenditures(a) | (147,311 | ) | (245,447 | ) | ||||
Contributions to equity investments in real estate(a) | (60 | ) | (2,125 | ) | ||||
Value added taxes recoverable on purchases of real estate | (1,142 | ) | — | |||||
Repayment of notes receivable | 7,000 | — | ||||||
Funds for construction released from escrow | 186 | — | ||||||
Payment of deferred acquisition fees to an affiliate | (1,133 | ) | (155 | ) | ||||
Net cash used in investing activities | (142,128 | ) | (247,727 | ) | ||||
Cash Flows — Financing Activities | ||||||||
Distributions paid | (11,675 | ) | (4,507 | ) | ||||
Contributions from noncontrolling interests | — | 103,363 | ||||||
Distributions to noncontrolling interests | (2,394 | ) | (886 | ) | ||||
Proceeds from mortgage notes payable | 71,678 | — | ||||||
Scheduled payments of mortgage principal | (1,357 | ) | (759 | ) | ||||
Payment of mortgage deposits, net of deposits refunded | (1,662 | ) | — | |||||
Proceeds from issuance of shares, net of offering costs | 130,055 | 65,927 | ||||||
Purchase of treasury stock | (984 | ) | (83 | ) | ||||
Net cash provided by financing activities | 183,661 | 163,055 | ||||||
Change in Cash and Cash Equivalents During the Period | ||||||||
Effect of exchange rate changes on cash | (560 | ) | (1,675 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 56,303 | (82,872 | ) | |||||
Cash and cash equivalents, beginning of period | 281,554 | 161,569 | ||||||
Cash and cash equivalents, end of period | $ | 337,857 | $ | 78,697 | ||||
(a) | The cost basis of real estate investments acquired during the three months ended March 31, 2010 and 2009, including equity investments in real estate, also includes deferred acquisition fees payable of $3.0 million and $3.3 million, respectively. |
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CPA®:17 – Global 3/31/2010 10-Q —8
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March 31, 2010 | December 31, 2009 | |||||||
Assets: | ||||||||
Cash and cash equivalents not attributable to consolidated VIE | $ | 1,449 | $ | 61 | ||||
Other assets, net not attributable to consolidated VIE | 4,820 | 4,307 | ||||||
Total assets not attributable to consolidated VIE | $ | 6,269 | $ | 4,368 | ||||
Liabilities: | ||||||||
Due to affiliates not attributable to consolidated VIE | $ | 1,162 | $ | 170 | ||||
Distributions payable not attributable to consolidated VIE | 13,945 | 11,675 | ||||||
Total liabilities not attributable to consolidated VIE | $ | 15,107 | $ | 11,845 | ||||
CPA®:17 – Global 3/31/2010 10-Q —9
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CPA®:17 – Global 3/31/2010 10-Q —10
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March 31, 2010 | December 31, 2009 | |||||||
Land | $ | 95,497 | $ | 62,597 | ||||
Buildings | 315,761 | 263,910 | ||||||
Less: Accumulated depreciation | (7,726 | ) | (5,957 | ) | ||||
$ | 403,532 | $ | 320,550 | |||||
CPA®:17 – Global 3/31/2010 10-Q —11
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Ownership | ||||||||||||
Interest at | Carrying Value at | |||||||||||
Lessee | March 31, 2010 | March 31, 2010 | December 31, 2009 | |||||||||
Berry Plastics(a) | 50 | % | $ | 21,149 | $ | 21,414 | ||||||
Tesco plc(b) | 49 | % | 20,890 | 22,081 | ||||||||
$ | 42,039 | $ | 43,495 | |||||||||
(a) | In February 2009, this venture repaid its $39.0 million outstanding balance on a non-recourse mortgage loan at a discount for $32.5 million and recognized a corresponding gain of $6.5 million. Our $3.2 million share of the gain was reduced by $2.9 million as a result of an other-than-temporary impairment charge recognized to reduce the carrying value of our investment to the estimated fair value of the venture’s underlying properties (Note 8). In connection with this transaction, the venture obtained non-recourse mortgage financing of $29.0 million with a variable annual interest rate capped at 10% through the use of an interest rate cap and a term of three years, with two one-year extensions. | |
(b) | Carrying value of investment is affected by the impact of fluctuations in the exchange rate of the Euro. We acquired our interest in this investment in July 2009. |
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March 31, 2010 | December 31, 2009 | |||||||
Assets | $ | 175,597 | $ | 181,600 | ||||
Liabilities | (81,562 | ) | (84,522 | ) | ||||
Partners’/members’ equity | $ | 94,035 | $ | 97,078 | ||||
Three months ended March 31, | ||||||||
2010 | 2009 | |||||||
Revenue | $ | 3,594 | $ | 1,660 | ||||
Expenses | (2,970 | ) | (1,614 | ) | ||||
Gain on extinguishment of debt | — | 6,512 | ||||||
Net income | $ | 624 | $ | 6,558 | ||||
Description | Face Value | Amortized Cost | Unrealized Gain | Estimated Fair Value | ||||||||||||
CMBS | $ | 33,284 | $ | 3,812 | $ | 367 | $ | 4,179 |
Rating (a) | Amortized Cost | |||
B | $ | 1,749 | ||
B+ | 1,304 | |||
BB- | 759 | |||
$ | 3,812 | |||
(a) | Ratings are those of Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. |
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Fair Value Measurements at Reporting Date Using: | ||||||||||||||||
Quoted Prices in | ||||||||||||||||
Active Markets for | Significant Other | Unobservable | ||||||||||||||
Identical Assets | Observable Inputs | Inputs | ||||||||||||||
Description | March 31, 2010 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Assets: | ||||||||||||||||
Money market funds | $ | 312,870 | $ | 312,870 | $ | — | $ | — | ||||||||
Derivative assets | 1,822 | — | 1,822 | — | ||||||||||||
$ | 314,692 | $ | 312,870 | $ | 1,822 | $ | — | |||||||||
Liabilities: | ||||||||||||||||
Derivative liabilities | $ | (328 | ) | $ | — | $ | (328 | ) | $ | — | ||||||
Fair Value Measurements at Reporting Date Using: | ||||||||||||||||
Quoted Prices in | ||||||||||||||||
Active Markets for | Significant Other | Unobservable | ||||||||||||||
Identical Assets | Observable Inputs | Inputs | ||||||||||||||
Description | December 31, 2009 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Assets: | ||||||||||||||||
Money market funds | $ | 278,566 | $ | 278,566 | $ | — | $ | — | ||||||||
Derivative assets | 2,985 | — | 2,985 | — | ||||||||||||
$ | 281,551 | $ | 278,566 | $ | 2,985 | $ | — | |||||||||
Liabilities: | ||||||||||||||||
Derivative liabilities | $ | (20 | ) | $ | — | $ | (20 | ) | $ | — | ||||||
March 31, 2010 | December 31, 2009 | |||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
Debt | $ | 366,650 | $ | 360,102 | $ | 300,908 | $ | 291,737 | ||||||||
CMBS(a) | 3,812 | 4,179 | 3,818 | 3,818 |
(a) | Carrying value represents historical cost, inclusive of impairment charges recognized during 2009 (Note 7). |
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CPA®:17 – Global 3/31/2010 10-Q —15
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Asset Derivatives Fair Value at | ||||||||||
Derivatives Designated as Hedging Instruments | Balance Sheet Location | March 31, 2010 | December 31, 2009 | |||||||
Interest rate cap | Other assets | $ | 1,822 | $ | 2,985 | |||||
Interest rate swap | Other liabilities | (328 | ) | (20 | ) | |||||
$ | 1,494 | $ | 2,965 | |||||||
Amount of | ||||
Loss Recognized | ||||
in OCL on Derivatives | ||||
(Effective Portion) | ||||
Three months | ||||
ended March 31, | ||||
Derivatives in Cash Flow Hedging Relationships | 2010 | |||
Interest rate cap(a) | $ | (1,163 | ) | |
Interest rate swap | (308 | ) | ||
Total | $ | (1,471 | ) | |
(a) | Includes loss of $0.5 million attributable to noncontrolling interests. |
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Notional | Effective | Effective | Expiration | Fair Value at | ||||||||||||||
Type | Amount | Interest Rate | Date | Date | March 31, 2010 | |||||||||||||
3-Month LIBOR | “Pay-fixed” swap (a) | $ | 26,931 | 3.7 | % | 1/2010 | 12/2019 | $ | (328 | ) | ||||||||
3-Month LIBOR | Interest rate cap(b) | 118,541 | 8.8 | % | 8/2009 | 8/2014 | 1,822 | |||||||||||
$ | 1,494 | |||||||||||||||||
(a) | We entered into this interest rate swap in December 2009. | |
(b) | The applicable interest rate of the related debt was 5.0%, which was below the effective interest rate of the cap at March 31, 2010. Inclusive of noncontrolling interests in the notional amount and fair value of the swap of $53.3 million and $0.8 million, respectively. |
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CPA®:17 – Global 3/31/2010 10-Q —18
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Three months ended March 31, | ||||||||
2010 | 2009 | |||||||
Pro forma total revenues | $ | 20,498 | $ | 21,970 | ||||
Pro forma net income | $ | 10,700 | $ | 9,180 | ||||
Less: Net income attributable to noncontrolling interests | (3,283 | ) | (2,464 | ) | ||||
Pro forma net income attributable to CPA®:17 - Global shareholders | $ | 7,417 | $ | 6,716 | ||||
Pro forma earnings per share: | ||||||||
Net income attributable to CPA®:17 - Global shareholders | $ | 0.08 | $ | 0.07 |
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Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Three months ended March 31, | ||||||||
2010 | 2009 | |||||||
Total revenues | $ | 18,296 | $ | 8,709 | ||||
Net income attributable to CPA®:17 — Global shareholders | 6,123 | 298 | ||||||
Cash flow provided by operating activities | 15,330 | 3,475 | ||||||
Supplemental performance measure: | ||||||||
Adjusted cash flow from operating activities | 9,147 | 2,513 | ||||||
Distributions paid | 11,675 | 4,507 |
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Three months ended March 31, | ||||||||
2010 | 2009 | |||||||
Average conversion rate from Euro to U.S. dollar | 1.3856 | 1.3083 |
Three months ended March 31, | ||||||||
2010 | 2009 | |||||||
Rental income | $ | 8,412 | $ | 4,271 | ||||
Interest income from direct financing leases | 9,367 | 3,765 | ||||||
$ | 17,779 | $ | 8,036 | |||||
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Three months ended March 31, | ||||||||
Lessee (Date Acquired or Placed in Service) | 2010 | 2009 | ||||||
The New York Times Company (3/2009)(a) | $ | 6,659 | $ | 1,850 | ||||
LifeTime Fitness, Inc. (9/2008) | 1,680 | 1,680 | ||||||
Eroski Sociedad Cooperativa (12/2009, 2/2010)(b) | 1,398 | — | ||||||
Frontier Spinning Mills, Inc. (12/2008)(a) | 1,118 | 1,109 | ||||||
US Oncology, Inc. (12/2009) | 1,047 | — | ||||||
Actebis Peacock GmbH (7/2008)(a) (b) | 1,008 | 949 | ||||||
Kronos Products, Inc. (3/2010) | 995 | — | ||||||
Waldaschaff Automotive GmbH and Wagon Automotive Nagold GmbH (8/2008)(a) (b) (c) | 729 | 1,047 | ||||||
Mori Seiki USA, Inc. (12/2009) | 703 | — | ||||||
Laureate Education, Inc. (7/2008) | 709 | 709 | ||||||
Sabre Communications Corporation and Cellxion, LLC (8/2008) | 630 | 632 | ||||||
National Express Limited (12/2009)(b) | 485 | — | ||||||
OBI Group Holding GmbH, OBI Holding GmbH and OBI AG (10/2009)(b) | 294 | — | ||||||
Other | 324 | 60 | ||||||
$ | 17,779 | $ | 8,036 | |||||
(a) | These revenues are generated in consolidated ventures with our affiliates and include lease revenues applicable to noncontrolling interests totaling $4.0 million and $1.9 million for the three months ended March 31, 2010 and 2009, respectively. | |
(b) | Amounts are subject to fluctuations in foreign currency exchange rates. | |
(c) | In connection with entering in Administration, Wagon Automotive GmbH terminated its lease with us in May 2009 and a successor company, Waldaschaff Automotive GmbH, took over the business and has been paying rent to us, albeit at a significantly reduced rate, while new lease terms are being negotiated. In addition, in October 2009, we terminated the existing lease with another tenant, Wagon Automotive Nagold GmbH, and signed a new lease with this tenant on substantially the same terms. |
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March 31, 2010 | December 31, 2009 | |||||||
Balance | ||||||||
Fixed rate | $ | 221,177 | $ | 154,754 | ||||
Variable rate(a) | 145,473 | 146,154 | ||||||
Total | $ | 366,650 | $ | 300,908 | ||||
Percent of total debt | ||||||||
Fixed rate | 60 | % | 51 | % | ||||
Variable rate(a) | 40 | % | 49 | % | ||||
100 | % | 100 | % | |||||
Weighted average interest rate at end of period | ||||||||
Fixed rate | 6.8 | % | 7.1 | % | ||||
Variable rate(a) | 5.3 | % | 5.3 | % |
(a) | Variable rate debt at March 31, 2010 consisted of (i) $27.0 million that has been effectively converted to fixed rate debt through interest rate swap derivative instruments and (ii) $118.5 million that is subject to an interest rate cap, but for which the applicable interest rate was below the effective interest rate of the cap at March 31, 2010. |
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Less than | More than | |||||||||||||||||||
Total | 1 Year | 1-3 Years | 3-5 Years | 5 years | ||||||||||||||||
Non-recourse and limited-recourse debt — principal | $ | 366,650 | $ | 6,056 | $ | 15,419 | $ | 122,253 | $ | 222,922 | ||||||||||
Deferred acquisition fees | 9,791 | 5,243 | 4,548 | — | — | |||||||||||||||
Interest on borrowings and deferred acquisition fees | 157,511 | 23,289 | 43,951 | 39,212 | 51,059 | |||||||||||||||
Operating and other lease commitments(a) | 954 | 142 | 291 | 290 | 231 | |||||||||||||||
$ | 534,906 | $ | 34,730 | $ | 64,209 | $ | 161,755 | $ | 274,212 | |||||||||||
(a) | Operating and other lease commitments consist of our share of future minimum rents payable under an office cost-sharing agreement with certain affiliates for the purpose of leasing office space used for the administration of real estate entities. Amounts under the cost-sharing agreement are allocated among the entities based on gross revenues and are adjusted quarterly. We anticipate that our share of future minimum lease payments will increase significantly as we continue to invest the proceeds of our offering. |
Ownership | ||||||||||||||||
Interest at | Total Third | |||||||||||||||
Lessee | March 31, 2010 | Total Assets | Party Debt | Maturity Date | ||||||||||||
Berry Plastics | 50 | % | $ | 80,821 | $ | 29,000 | 3/2012 | |||||||||
Tesco plc(a) | 49 | % | 94,776 | 46,837 | 6/2016 | |||||||||||
$ | 175,597 | $ | 75,837 | |||||||||||||
(a) | Dollar amounts shown are based on the exchange rate of the Euro at March 31, 2010. |
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Three months ended March 31, | ||||||||
2010 | 2009 | |||||||
Cash flow provided by operating activities — as reported | $ | 15,330 | $ | 3,475 | ||||
Adjustments: | ||||||||
Distributions received from equity investments in real estate in excess of equity income, net (a) | 332 | — | ||||||
Distributions paid to noncontrolling interests, net(b) | (2,394 | ) | (873 | ) | ||||
Changes in working capital(c) | (4,121 | ) | (89 | ) | ||||
Adjusted cash from operating activities | $ | 9,147 | $ | 2,513 | ||||
Distributions paid | $ | 11,675 | $ | 4,507 | ||||
Weighted average shares outstanding | 87,261,461 | 38,152,272 | ||||||
(a) | To the extent we receive distributions in excess of equity income that we recognize, we include such amounts in our evaluation of cash flow from core operations. | |
(b) | Represents noncontrolling interests’ share of distributions made by ventures that we consolidate in our financial statements. | |
(c) | Timing differences arising from the payment of certain liabilities and the receipt of certain receivables in a period other than that in which the item is recognized in determining net income may distort the actual cash flow that our core operations generate. We adjust our GAAP cash flow provided by operating activities to record such amounts in the period in which the item was actually recognized. |
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Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
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2010 | 2011 | 2012 | 2013 | 2014 | Thereafter | Total | Fair value | |||||||||||||||||||||||||
Fixed rate debt | $ | 2,339 | $ | 4,332 | $ | 4,687 | $ | 5,053 | $ | 5,612 | $ | 199,154 | $ | 221,177 | $ | 214,630 | ||||||||||||||||
Variable rate debt | $ | 2,162 | $ | 3,042 | $ | 3,176 | $ | 3,317 | $ | 108,776 | $ | 25,000 | $ | 145,473 | $ | 145,472 |
Item 4. | Controls and Procedures |
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Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Shares registered | 200,000,000 | |||
Aggregate price of offering amount registered | $ | 2,000,000 | ||
Shares sold(a) | 92,107,016 | |||
Aggregated offering price of amount sold | $ | 920,310 | ||
Direct or indirect payments to directors, officers, general partners of the issuer or their associates; to persons owning ten percent or more of any class of equity securities of the issuer; and to affiliates of the issuer | (91,969 | ) | ||
Direct or indirect payments to others | (8,044 | ) | ||
Net offering proceeds to the issuer after deducting expenses | 820,297 | |||
Purchases of real estate related assets | (416,120 | ) | ||
Temporary investments in cash and cash equivalents | $ | 404,177 | ||
(a) | Excludes shares issued to affiliates, including our advisor, and shares issued pursuant to our distribution reinvestment and stock purchase plan. |
Maximum number (or | ||||||||||||||||
Total number of shares | approximate dollar value) | |||||||||||||||
purchased as part of | of shares that may yet be | |||||||||||||||
Total number of | Average price | publicly announced | purchased under the | |||||||||||||
2010 Period | shares purchased(a) | paid per share | plans or programs(a) | plans or programs(a) | ||||||||||||
January | N/A | N/A | ||||||||||||||
February | N/A | N/A | ||||||||||||||
March | 105,869 | $ | 9.30 | N/A | N/A | |||||||||||
Total | 105,869 | |||||||||||||||
(a) | Represents shares of our common stock purchased under our redemption plan, pursuant to which we may elect to redeem shares at the request of our shareholders who have held their shares for at least one year from the date of their issuance, subject to certain conditions and limitations. The maximum amount of shares purchasable by us in any period depends on a number of factors and is at the discretion of our board of directors. The redemption plan will terminate if and when our shares are listed on a national securities market. |
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Item 6. | Exhibits |
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 | ||||
32 | Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | Filed herewith |
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Corporate Property Associates 17 — Global Incorporated | ||||
Date 5/14/2010 | By: | /s/ Mark J. DeCesaris | ||
Mark J. DeCesaris | ||||
Managing Director and Acting Chief Financial Officer (Principal Financial Officer) | ||||
Date 5/14/2010 | By: | /s/ Thomas J. Ridings, Jr. | ||
Thomas J. Ridings, Jr. | ||||
Executive Director and Chief Accounting Officer (Principal Accounting Officer) | ||||
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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 | ||||
32 | Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | Filed herewith |
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