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Exhibit 99.1

 

GRAPHIC

 

 

Corporate Property Associates 17 – Global Incorporated

Supplemental Unaudited Information

 

As of December 31, 2012

 

As used in this supplemental package, the terms “the Company,” “we,” “us” and “our” include Corporate Property Associates 17 – Global Incorporated (“CPA®:17 – Global”), its consolidated subsidiaries and predecessors, unless otherwise indicated. “GAAP” means generally accepted accounting principles in the United States (“U.S.”).

 

Important Note Regarding Non-GAAP Financial Measures

 

This supplemental package includes certain supplemental metrics that are not defined by GAAP (“non-GAAP”), including funds from operations (“FFO”), modified funds from operations (“MFFO”), and total adjusted revenue. A description of these non-GAAP measures and reconciliations to the most directly comparable GAAP measures are provided in this supplemental package.

 

Forward-Looking Statements

 

This supplemental package contains forward-looking statements within the meaning of the Federal securities laws. It is important to note that our actual results could be materially different from those projected in such forward-looking statements. You should exercise caution in relying on forward-looking statements as they involve known and unknown risks, uncertainties and other factors that may materially affect our future results, performance, achievements or transactions. Information on factors which could impact actual results and forward-looking statements contained herein is included in our filings with the Securities and Exchange Commission, including but not limited to our Annual Report on Form 10-K for the year ended December 31, 2012. We do not undertake to revise or update any forward-looking statements.

 

Executive Offices

50 Rockefeller Plaza

New York, NY 10020

Tel: 1-800-WPCAREY or (212) 492-1100

Fax: (212) 492-8922

Web Site Address: www.CPA17GLOBAL.com

Investor Relations

Susan C. Hyde

Managing Director & Director of Investor Relations

W. P. Carey Inc.

Phone: (212) 492-1151

 


 

Corporate Property Associates 17 – Global Incorporated

Reconciliation of Net Income Attributable to CPA®:17 – Global Stockholders

to Modified Funds From Operations (MFFO) (Unaudited)

(in thousands, except share and per share amounts)

 

 

 

Three Months Ended December 31,

 

Years Ended December 31,

 

 

2012

 

2011

 

2010

 

2012

 

2011

 

2010

Net income attributable to CPA®:17 – Global stockholders

 

 $

3,927

 

 $

14,073

 

 $

8,963

 

 $

41,611

 

 $

49,655

 

 $

30,454

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization of real property

 

19,144

 

14,043

 

4,589

 

67,141

 

42,240

 

13,898

Impairment charges

 

-

 

(70)

 

-

 

-

 

(70)

 

-

(Gain) loss on sale of real estate

 

(1,092)

 

9

 

(1)

 

(1,832)

 

(778)

 

(110)

Proportionate share of adjustments to equity in net income of partially-owned entities to arrive at FFO:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization of real property

 

4,001

 

4,152

 

806

 

16,458

 

13,892

 

3,136

Impairment charges

 

-

 

13

 

-

 

-

 

13

 

-

Loss on sale of real estate, net

 

1

 

-

 

-

 

1

 

-

 

38

Proportionate share of adjustments for noncontrolling interests to arrive at FFO

 

(154)

 

(156)

 

(158)

 

(578)

 

(646)

 

(580)

Total adjustments

 

21,900

 

17,991

 

5,236

 

81,190

 

54,651

 

16,382

FFO — as defined by NAREIT

 

25,827

 

32,064

 

14,199

 

122,801

 

104,306

 

46,836

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Other non-real estate depreciation, amortization and non-cash charges

 

998

 

738

 

(19)

 

1,825

 

114

 

79

Straight-line and other rent adjustments (a)

 

(4,734)

 

(4,699)

 

(1,357)

 

(15,315)

 

(14,236)

 

(5,252)

Impairment charges (b)

 

-

 

-

 

-

 

2,019

 

-

 

-

Acquisition expenses (c)

 

13,850

 

2,961

 

298

 

17,173

 

9,335

 

1,868

Above-market rent intangible lease amortization, net (d)

 

229

 

348

 

366

 

858

 

1,756

 

1,215

Amortization of premiums on debt investments, net

 

34

 

37

 

37

 

138

 

148

 

130

Realized gains on foreign currency, derivatives and other (e)

 

(425)

 

(5,045)

 

(95)

 

(3,724)

 

(6,665)

 

(846)

Proportionate share of adjustments to equity in net income of partially-owned entities to arrive at MFFO:

 

 

 

 

 

 

 

 

 

 

 

 

Other non-real estate depreciation, amortization and non-cash charges

 

17

 

(7)

 

15

 

28

 

(6)

 

(6)

Straight-line and other rent adjustments (a)

 

(6)

 

85

 

(115)

 

(45)

 

(154)

 

(364)

Gain on extinguishment of debt (f)

 

-

 

-

 

-

 

(1,914)

 

-

 

-

Acquisition expenses (c)

 

65

 

112

 

1

 

273

 

282

 

2

Above (below)-market rent intangible lease amortization, net (d)

 

(58)

 

5

 

(1)

 

2

 

13

 

(22)

Realized (gains) losses on foreign currency, derivatives and other (e)

 

(8)

 

(3)

 

-

 

-

 

(7)

 

1

Proportionate share of adjustments for noncontrolling interests to arrive at MFFO

 

183

 

1,109

 

211

 

1,061

 

1,880

 

948

Total adjustments

 

10,145

 

(4,359)

 

(659)

 

2,379

 

(7,540)

 

(2,247)

MFFO

 

 $

35,972

 

 $

27,705

 

 $

13,540

 

 $

125,180

 

 $

96,766

 

 $

44,589

MFFO per share

 

 $

0.14

 

 $

0.16

 

 $

0.11

 

 $

0.58

 

 $

0.63

 

 $

0.45

Weighted average shares outstanding

 

286,498,716

 

198,944,943

 

134,640,891

 

249,283,354

 

175,271,595

 

110,882,448

 

CPA®:17 – Global 2012 Supplemental 8-K — 1

 


 

MFFO per share calculation:

 

 

 

Three Months Ended December 31,

 

Years Ended December 31,

 

 

2012

 

2011

 

2010

 

2012

 

2011

 

2010

MFFO

 

 $

35,972

 

 $

27,705

 

 $

13,540

 

 $

125,180

 

 $

96,766

 

 $

44,589

Issuance of shares to an affiliate in satisfaction of fees due

 

4,708

 

4,161

 

1,471

 

18,932

 

13,435

 

5,050

MFFO numerator in determination of MFFO per share

 

 $

40,680

 

 $

31,866

 

 $

15,011

 

 $

144,112

 

 $

110,201

 

 $

49,639

 

 

 

 

 

(a)         Under GAAP, rental receipts are allocated to periods using an accrual basis. This may result in income recognition that is significantly different than underlying contract terms. By adjusting for these items (to reflect such payments from a GAAP accrual basis to a cash basis of disclosing the rent and lease payments), management believes that MFFO provides useful supplemental information on the realized economic impact of lease terms and debt investments, provides insight on the contractual cash flows of such lease terms and debt investments, and aligns results with management’s analysis of operating performance.

(b)         Impairment charges were incurred on our commercial mortgage-backed securities portfolio and are considered non-real estate impairments. As such, these impairment charges were not included in our computation of FFO as defined by NAREIT but are included as an adjustment in arriving at MFFO as these charges are not directly related or attributable to our operations.

(c)          In evaluating investments in real estate, management differentiates the costs to acquire the investment from the operations derived from the investment. Such information would be comparable only for non-listed REITs that have completed their acquisition activity and have other similar operating characteristics. By excluding expensed acquisition costs, management believes MFFO provides useful supplemental information that is comparable for each type of real estate investment and is consistent with management’s analysis of the investing and operating performance of our properties. Acquisition fees and expenses include payments to our advisor or third parties. Acquisition fees and expenses under GAAP are considered operating expenses and as expenses included in the determination of net income and income from continuing operations, both of which are performance measures under GAAP. All paid and accrued acquisition fees and expenses will have negative effects on returns to stockholders, the potential for future distributions, and cash flows generated by us, unless earnings from operations or net sales proceeds from the disposition of properties are generated to cover the purchase price of the property, these fees and expenses and other costs related to the property.

(d)        Under GAAP, certain intangibles are accounted for at cost and reviewed at least annually for impairment, and certain intangibles are assumed to diminish predictably in value over time and amortized, similar to depreciation and amortization of other real estate related assets that are excluded from FFO. However, because real estate values and market lease rates historically rise or fall with market conditions, management believes that by excluding charges relating to amortization of these intangibles, MFFO provides useful supplemental information on the performance of the real estate.

(e)          Management believes that adjusting for fair value adjustments for derivatives provides useful information because such fair value adjustments are based on market fluctuations and may not be directly related or attributable to our operations.

(f)           Relates to our share of gain on the extinguishment of debt recognized by a jointly-owned investment.

 

Non-GAAP Financial Disclosure – FFO and MFFO

 

Due to certain unique operating characteristics of real estate companies, as discussed below, NAREIT has promulgated a measure known as funds from operations, or FFO, which we believe to be an appropriate supplemental measure to reflect the operating performance of a real estate investment trust, or REIT. The use of FFO is recommended by the REIT industry as a supplemental performance measure. FFO is not equivalent to nor a substitute for net income or loss as determined under GAAP.

 

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

 

The historical accounting convention used for real estate assets requires straight-line depreciation of buildings and improvements, which implies that the value of real estate assets diminishes predictably over time, especially if such assets are not adequately maintained or repaired and renovated as required by relevant circumstances and/or is requested or required by lessees for operational purposes in order to maintain the value disclosed. We believe that, since real estate values historically rise and fall with market conditions, including inflation, interest rates, the business cycle, unemployment and consumer spending, presentations of operating results for a REIT using historical accounting for depreciation may be less informative. Historical accounting for real estate involves the use of GAAP. Any other method of accounting for real estate such as the fair value method cannot be construed to be any more accurate or relevant than the comparable methodologies of real estate valuation found in GAAP. Nevertheless, we believe that the use of FFO, which excludes the impact of real estate-related depreciation and amortization as well as impairment charges of real estate-

 

CPA®:17 – Global 2012 Supplemental 8-K — 2

 


 

related assets, provides a more complete understanding of our performance to investors and to management, and when compared year over year, reflects the impact on our operations from trends in occupancy rates, rental rates, operating costs, general and administrative expenses, and interest costs, which may not be immediately apparent from net income. In particular, we believe it is appropriate to disregard impairment charges, as this is a fair value adjustment that is largely based on market fluctuations and assessments regarding general market conditions which can change over time. An asset will only be evaluated for impairment if certain impairment indications exist and if the carrying, or book value, exceeds the total estimated undiscounted future cash flows (including net rental and lease revenues, net proceeds on the sale of the property, and any other ancillary cash flows at a property or group level under GAAP) from such asset. Investors should note, however, that determinations of whether impairment charges have been incurred are based partly on anticipated operating performance, because estimated undiscounted future cash flows from a property, including estimated future net rental and lease revenues, net proceeds on the sale of the property, and certain other ancillary cash flows, are taken into account in determining whether an impairment charge has been incurred. While impairment charges are excluded from the calculation of FFO described above, investors are cautioned that, due to the fact that impairments are based on estimated future undiscounted cash flows and the relatively limited term of our operations, it could be difficult to recover any impairment charges. However, FFO and MFFO, as described below, should not be construed to be more relevant or accurate than the current GAAP methodology in calculating net income or in its applicability in evaluating the operating performance of the company. The method utilized to evaluate the value and performance of real estate under GAAP should be construed as a more relevant measure of operational performance and considered more prominently than the non-GAAP FFO and MFFO measures and the adjustments to GAAP in calculating FFO and MFFO.

 

Changes in the accounting and reporting promulgations under GAAP (for acquisition fees and expenses from a capitalization/depreciation model to an expensed-as-incurred model) were put into effect in 2009. These other changes to GAAP accounting for real estate subsequent to the establishment of NAREIT’s definition of FFO have prompted an increase in cash-settled 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-listed REITs typically have a significant amount of acquisition activity and are substantially more dynamic during their initial years of investment and operation. While other start-up entities may also experience significant acquisition activity during their initial years, we believe that non-listed REITs are unique in that they have a limited life with targeted exit strategies within a relatively limited time frame after acquisition activity ceases. As disclosed in the prospectus for our follow-on offering dated April 7, 2011 (the “Prospectus”), we intend to begin the process of achieving a liquidity event (i.e., listing of our common stock on a national exchange, a merger or sale of our assets or another similar transaction) within eight to 12 years following the investment of substantially all of the net proceeds from our initial offering, which occurred in April 2011. Thus, we do not intend to continuously purchase assets and intend to have a limited life. Due to the above factors and other unique features of publicly registered, non-listed REITs, the Investment Program Association (“IPA”), an industry trade group, has standardized a measure known as MFFO, which the IPA has recommended as a supplemental measure for publicly registered non-listed REITs and which we believe to be another appropriate supplemental measure to reflect the operating performance of a non-listed REIT having the characteristics described above. MFFO is not equivalent to our net income or loss as determined under GAAP, and MFFO may not be a useful measure of the impact of long-term operating performance on value if we do not continue to operate with a limited life and targeted exit strategy, as currently intended. We believe that, because MFFO excludes costs that we consider more reflective of investing activities and other non-operating items included in FFO and also excludes acquisition fees and expenses that affect our operations only in periods in which properties are acquired, MFFO can provide, on a going forward basis, an indication of the sustainability (that is, the capacity to continue to be maintained) of our operating performance after the period in which we are acquiring properties and once our portfolio is in place. By providing MFFO, we believe we are presenting useful information that assists investors and analysts to better assess the sustainability of our operating performance now that our offering has been completed and once all of our properties have been acquired. We also believe that MFFO is a recognized measure of sustainable operating performance by the non-listed REIT industry. Further, we believe MFFO is useful in comparing the sustainability of our operating performance since our offering and most of our acquisitions are completed with the sustainability of the operating performance of other real estate companies that are not as involved in acquisition activities. Investors are cautioned that MFFO should only be used to assess the sustainability of a company’s operating performance after a company’s offering has been completed and properties have been acquired, as it excludes acquisition costs that have a negative effect on a company’s operating performance during the periods in which properties are acquired.

 

We define MFFO consistent with the IPA’s Guideline 2010-01, Supplemental Performance Measure for Publicly Registered, Non-Listed REITs: Modified Funds from Operations, or the Practice Guideline, issued by the IPA in November 2010. The Practice Guideline defines MFFO as FFO further adjusted for the following items, as applicable, included in the determination of GAAP net income: acquisition fees and expenses; amounts relating to deferred rent receivables and amortization of above and below market leases and liabilities (which are adjusted in order to reflect such payments from a GAAP accrual basis to a cash basis of disclosing the rent and lease payments); accretion of discounts and amortization of premiums on debt investments; nonrecurring impairments of real estate-related investments (i.e., infrequent or unusual, not reasonably likely to recur in the ordinary course of business); mark-to-market adjustments included in net income; nonrecurring gains or losses included in net income from the extinguishment or sale of debt, hedges, foreign exchange, derivatives or securities holdings where trading of such holdings is not a fundamental attribute of the

 

CPA®:17 – Global 2012 Supplemental 8-K — 3

 


 

business plan, unrealized gains or losses resulting from consolidation from, or deconsolidation to, equity accounting, and after adjustments for consolidated and unconsolidated partnerships and jointly-owned investments, with such adjustments calculated to reflect MFFO on the same basis. The accretion of discounts and amortization of premiums on debt investments, nonrecurring unrealized gains and losses on hedges, foreign exchange, derivatives or securities holdings, unrealized gains and losses resulting from consolidations, as well as other listed cash flow adjustments are adjustments made to net income in calculating the cash flows provided by operating activities and, in some cases, reflect gains or losses which are unrealized and may not ultimately be realized. While we are responsible for managing interest rate, hedge and foreign exchange risk, we retain an outside consultant to review all our hedging agreements. Inasmuch as interest rate hedges are not a fundamental part of our operations, we believe it is appropriate to exclude such infrequent gains and losses in calculating MFFO, as such gains and losses are not reflective of on-going operations.

 

In calculating MFFO, we exclude acquisition-related expenses, amortization of above- and below-market leases, fair value adjustments of derivative financial instruments, deferred rent receivables and the adjustments of such items related to noncontrolling interests. Under GAAP, acquisition fees and expenses are characterized as operating expenses in determining operating net income. These expenses are paid in cash by a company. All paid and accrued acquisition fees and expenses will have negative effects on returns to investors, the potential for future distributions, and cash flows generated by the company, unless earnings from operations or net sales proceeds from the disposition of other properties are generated to cover the purchase price of the property, these fees and expenses and other costs related to such property. Further, under GAAP, certain contemplated non-cash fair value and other non-cash adjustments are considered operating non-cash adjustments to net income in determining cash flow from operating activities. In addition, we view fair value adjustments of derivatives and gains and losses from dispositions of assets as infrequent items or items which are unrealized and may not ultimately be realized, and which are not reflective of on-going operations and are therefore typically adjusted for assessing operating performance.

 

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

 

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

 

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

 

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

 

CPA®:17 – Global 2012 Supplemental 8-K — 4


 

 

Corporate Property Associates 17 – Global Incorporated

Total Adjusted Revenue (Pro Rata Basis) (Unaudited)

(in thousands)

 

 

 

Three Months Ended

 

Years Ended December 31,

 

 

December 31, 2012

 

September 30, 2012

 

June 30, 2012

 

March 31, 2012

 

2012

 

2011

 

2010

Reconciliation of Total Adjusted Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue — as reported

 

 $

90,152

 

 $

69,366

 

 $

68,721

 

 $

65,804

 

 $

294,043

 

 $

196,121

 

 $

99,463

Less: Other operating income

 

(2,554)

 

(817)

 

(893)

 

(924)

 

(5,188)

 

(2,880)

 

(1,440)

Less: Interest income revenue

 

(4,261)

 

(1,560)

 

(1,830)

 

(1,391)

 

(9,042)

 

(6,602)

 

(3,545)

Less: Other real estate income

 

(19,885)

 

(9,511)

 

(9,944)

 

(9,763)

 

(49,103)

 

(13,740)

 

(2,217)

Total consolidated lease revenues

 

63,452

 

57,478

 

56,054

 

53,726

 

230,710

 

172,899

 

92,261

Lease revenues — discontinued operations

 

-

 

-

 

-

 

106

 

106

 

1,146

 

59

Add: Pro rata share of revenues from equity investments

 

9,178

 

8,896

 

9,072

 

9,123

 

36,269

 

31,556

 

7,441

Less: Pro rata share of revenues due to noncontrolling interests

 

(4,199)

 

(4,116)

 

(4,099)

 

(4,264)

 

(16,678)

 

(16,456)

 

(15,922)

Total pro rata net lease revenues

 

68,431

 

62,258

 

61,027

 

58,691

 

250,407

 

189,145

 

83,839

Add: Other real estate income

 

19,885

 

9,511

 

9,944

 

9,763

 

49,103

 

13,740

 

2,217

Total Adjusted Revenue

 

 $

88,316

 

 $

71,769

 

 $

70,971

 

 $

68,454

 

 $

299,510

 

 $

202,885

 

 $

86,056

 

Non-GAAP Financial Disclosure – Total Adjusted Revenue

 

Total adjusted revenue is a non-GAAP financial measure that represents revenues on a GAAP basis adjusted for our pro rata share of revenues from equity investments as well as the pro rata share of revenues due to noncontrolling interests. We believe that total adjusted revenue is useful to investors and analysts as a supplemental measure of revenues from our core operations, and we use it to evaluate the stability of our underlying revenue streams. Total adjusted revenue should not be considered as an alternative to revenues computed on a GAAP basis as a measure of our profitability. Total adjusted revenue may not be comparable to similarly titled measures of other companies.

 

CPA®:17 – Global 2012 Supplemental 8-K — 5

 

 

 


 

Corporate Property Associates 17 – Global Incorporated

Portfolio Diversification as of December 31, 2012 (Unaudited)

Top Ten Tenants by Rent (Pro Rata Basis)

(in thousands, except percentages)

 

 

 

Annualized Contractual

 

 

 

Tenant/Lease Guarantor

 

Minimum Base Rent

 

Percent

Metro Cash & Carry Italia S.p.A. (a)

 

$

26,956

 

9

%

Agrokor d.d. (a)

 

24,499

 

8

%

General Parts Inc., Golden State Supply LLC, Straus-Frank Enterprises LLC, General Parts Distribution LLC and Worldpac Inc., collectively “CARQUEST”

 

17,653

 

6

%

Self Storage Portfolio

 

17,361

 

6

%

The New York Times Company

 

13,911

 

5

%

C1000 Logistiek Vastgoed B.V. (a)

 

12,946

 

4

%

Hellweg Die Profi-Baumärkte GmbH & Co. KG (a)

 

11,838

 

4

%

Eroski Sociedad Cooperativa (a)

 

11,289

 

4

%

Blue Cross and Blue Shield of Minnesota, Inc.

 

11,276

 

4

%

KBR, Inc.

 

9,913

 

3

%

Total

 

$

157,642

 

53

%

 

 

 

 

 

 

Weighted-Average Lease Term for Portfolio:

 

15.8 years

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Portfolio

 

At December 31, 2012, our portfolio was comprised of our full or partial ownership interests in 335 fully-occupied properties, substantially all of which were triple-net leased to 80 tenants, and totaled approximately 32 million square feet (on a pro rata basis). In addition, we own 58 self-storage properties and retain a fee interest in a hotel property for an aggregate of approximately 4 million square feet (on a pro rata basis).

 

 

CPA®:17 – Global 2012 Supplemental 8-K — 6

 

 


 

Corporate Property Associates 17 – Global Incorporated

Portfolio Diversification as of December 31, 2012 (Unaudited)

by Geography and Property Type (Pro Rata Basis)

(in thousands, except percentages)

 

 

 

Annualized Contractual

 

 

 

Region

 

Minimum Base Rent

 

Percent

U.S.

 

 

 

 

 

South

 

$

52,813

 

18

%

Midwest

 

47,003

 

16

%

East

 

39,788

 

14

%

West

 

32,892

 

11

%

U.S. Total

 

172,496

 

59

%

 

 

 

 

 

 

International

 

 

 

 

 

Italy

 

26,956

 

9

%

Croatia

 

24,499

 

8

%

Spain

 

20,283

 

7

%

Germany

 

17,123

 

6

%

Netherlands

 

12,946

 

5

%

Other (a)

 

16,931

 

6

%

International Total

 

118,738

 

41

%

 

 

 

 

 

 

Total

 

$

291,234

 

100

%

 

 

 

Annualized Contractual

 

 

 

Property Type

 

Minimum Base Rent

 

Percent

Warehouse/Distribution

 

$

82,289

 

28

%

Retail

 

72,051

 

25

%

Office

 

69,362

 

24

%

Industrial

 

33,221

 

11

%

Self Storage

 

21,110

 

7

%

Other (b)

 

13,201

 

5

%

Total

 

$

291,234

 

100

%

 

 

 

 

 

 

 

 

 

(a)         Includes rent from tenants in Hungary, Poland, Japan, and the United Kingdom.

(b)         Includes rent from tenants with the following property types: education (2.1%), automotive dealership (1.8%), hospitality (0.4%), and land (0.2%).

 

Portfolio Diversification by Geography

 

Portfolio Diversification by Property Type

 

 

 

CPA®:17 – Global 2012 Supplemental 8-K — 7

 

 


 

Corporate Property Associates 17 – Global Incorporated

Portfolio Diversification as of December 31, 2012 (Unaudited)

by Tenant Industry (Pro Rata Basis)

(in thousands, except percentages)

 

 

 

Annualized Contractual

 

 

 

Industry Type (a)

 

Minimum Base Rent

 

Percent

Retail Trade

 

$

71,137

 

24

%

Grocery

 

52,253

 

18

%

Media: Printing and Publishing

 

25,580

 

9

%

Buildings and Real Estate

 

20,337

 

7

%

Transportation - Cargo

 

15,416

 

5

%

Insurance

 

11,276

 

4

%

Machinery

 

10,221

 

4

%

Healthcare, Education, and Childcare

 

9,960

 

4

%

Construction and Building

 

9,932

 

3

%

Chemicals, Plastics, Rubber, and Glass

 

9,286

 

3

%

Electronics

 

7,214

 

3

%

Leisure, Amusement, and Entertainment

 

6,124

 

2

%

Business and Commercial Services

 

6,084

 

2

%

Beverages, Food, and Tobacco

 

5,613

 

2

%

Consumer Services

 

5,199

 

2

%

Consumer Non-durable Goods

 

4,801

 

2

%

Banking

 

4,065

 

1

%

Automobile

 

3,953

 

1

%

Transportation - Personal

 

3,689

 

1

%

Textiles, Leather, and Apparel

 

2,945

 

1

%

Other (b)

 

6,149

 

2

%

Total

 

$

291,234

 

100

%

 

 

 

 

 

 

 

 

 

(a)         Based on the Moody’s Investors Service, Inc. classification system and information provided by the tenant.

(b)         Includes rent from tenants in the following industries: hotels and gaming (0.6%), parking garage (0.5%), mining, metals, and primary metal industries (0.3%), forest products and paper (0.3%), finance (0.2%), consumer and durable goods (0.1%), and telecommunications (0.05%).

 

 

CPA®:17 – Global 2012 Supplemental 8-K — 8

 

 


 

Corporate Property Associates 17 – Global Incorporated

Investment Activity (Unaudited) (Pro Rata Basis)

For the Year Ended December 31, 2012

(in thousands, except square footage)

 

Acquisitions

 

Tenant/Lease Guarantor

 

 

Property Location(s)

 

 

Purchase Price (a)

 

 

Closing Date

 

 

Property Type

 

 

Gross Square Footage

 

Blue Cross and Blue Shield of Minnesota, Inc.

 

Aurora, Eagan, & Virginia, MN

 

$

168,998

 

January-12

 

Office

 

1,131,469

Sabre Communications Corporation and Cellxion, LLC

 

Alvarado, TX

 

4,964

 

March-12 & June-12

 

Industrial

 

44,250

Nippon Sheet Glass Co., Ltd. (b) (c)

 

Tarnobrzeg, Poland

 

26,579

 

April-12

 

Warehouse/Distribution

 

BTS

Sabre Communications Corporation and Cellxion, LLC (b)

 

Sioux City, IA

 

17,801

 

June-12

 

Industrial

 

BTS

Clayco, Inc.

 

St. Louis, MO

 

6,918

 

July-12

 

Office

 

84,709

Bearing Technologies, LTD

 

Avon, OH

 

7,046

 

August-12

 

Industrial

 

115,726

Shale-Inland Holdings, LLC

 

Elk Grove Village, IL

 

14,590

 

August-12

 

Industrial

 

273,681

South University

 

Montgomery, AL & Savannah, GA

 

24,952

 

September-12

 

Education

 

131,129

RLJ-McLarty-Landers Automotive Holdings, LLC

 

Various locations in Alabama, Arkansas, Louisiana,
Missouri, Tennessee, & Texas

 

68,748

 

September-12

 

Automotive Dealership

 

377,164

R.R. Donnelley & Sons Company

 

Warrenville, IL

 

36,285

 

September-12

 

Office

 

167,215

Syncreon Logistics Polska Sp. (b) (c)

 

Zary, Poland

 

8,345

 

September-12

 

Office & Warehouse/Distribution

 

BTS

Walgreens

 

Las Vegas, NV

 

39,684

 

October-12

 

Retail

 

115,188

Cuisine Solutions, Inc.

 

Sterling, VA

 

26,428

 

October-12

 

Industrial

 

163,110

IDL Wheel Tenant, LLC (b)

 

Orlando, FL

 

113,613

 

November-12

 

Retail

 

BTS

KBR, Inc.

 

Houston, TX

 

174,857

 

November-12

 

Office

 

1,633,748

Agrokor d.d. (c)

 

Various Locations in Croatia

 

45,739

 

December-12

 

Retail

 

278,387

Argosy Education Group, Inc.

 

Eagan, MN

 

15,666

 

December-12

 

Education

 

88,165

Wanbishi Archives Co., LTD. (c)

 

Saitama Prefecture, Japan

 

47,223

 

December-12

 

Warehouse/Distribution

 

152,137

Total Acquisitions - Leased Properties

 

 

 

848,436

 

 

 

 

 

4,756,078

 

 

 

 

 

 

 

 

 

 

 

Property Type

 

Property Location(s)

 

Purchase Price (a)

 

Closing Date

 

 

 

 

Self-Storage Facilities

 

Various locations in Alabama, Louisiana, & Mississippi

 

16,800

 

June-12

 

 

 

 

Self-Storage Facility

 

Cherry Valley, IL

 

3,175

 

July-12

 

 

 

 

Self-Storage Facility

 

Fayetteville, NC

 

5,350

 

September-12

 

 

 

 

Self-Storage Facilities

 

Tampa, FL

 

24,970

 

November-12

 

 

 

 

Self-Storage Facilities

 

Midland and Odessa, TX

 

32,600

 

December-12

 

 

 

 

Total Acquisitions - 14 Self-Storage Properties

 

 

 

82,895

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Security Type

 

Company

 

Purchase Price (a)

 

Closing Date

 

 

 

 

Equity Securities

 

Lineage Logistics Holdings, LLC

 

7,070

 

June-12

 

 

 

 

Equity Securities

 

BPS Parent, LLC

 

31,447

 

October-12

 

 

 

 

Total Acquisitions - Equity Securities

 

 

 

38,517

 

 

 

 

 

 

 

 

CPA®:17 – Global 2012 Supplemental 8-K 9

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

Security Type

 

Company

 

Purchase Price (a) (d)

 

Closing Date

 

 

 

 

Loan

 

IDL Wheel Tenant, LLC

 

1,769

 

November-12

 

 

 

 

Loan

 

Shelborne Property Associates, LLC

 

63,890

 

December-12

 

 

 

 

Total Acquisitions - Loans

 

 

 

65,659

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Acquisitions

 

 

 

$

1,035,507

 

 

 

 

 

 

 

Dispositions

 

Tenant/Lease Guarantor

 

Property Location(s)

 

Gross Sale Price

 

Date

 

Property Type

 

Gross Square Footage

Dolgencorp, LLC

 

Choudrant, Gardner, Mangham, Mount Hermon,
  & Richwood, LA; Vass, NC; & Chesterfield,
  Hopewell, & Hot Springs, VA

 

$

12,922

 

February-12 &
March-12

 

Retail

 

99,363

Total Dispositions

 

 

 

$

12,922

 

 

 

 

 

99,363

 

 

 

 

 

 

 

 

 

(a)         Includes capitalized transaction costs, where applicable.

(b)         Acquisition includes a build-to-suit (“BTS”) transaction. Gross square footage cannot be determined at this time.

(c)         Acquisition price reflects applicable foreign exchange rate.

(d)         Purchase price represents the amount funded as of December 31, 2012. The total loan commitments are $50.5 million and $125.0 million for IDL Wheel Tenant, LLC and Shelborne Property Associates, LLC, respectively.

 

 

CPA®:17 – Global 2012 Supplemental 8-K 10