Hines Global Income Trust Inc., a publicly registered non-traded real estate investment trust, has declared a net asset value per share of $10.10 for its Class T, Class S, Class D, and Class I shares of common stock, as of January 31, 2021.
Recent NAVs per share were $10.12 at December 2020, $9.82 per share at November 2020, and $9.73 at October 2020.
The REIT’s real estate investments remained relatively flat at $1.848 billion in January and $1.847 billion in December. Other assets increased from nearly $146.7 million in December to $159 million in January, while debt and other liabilities decreased from ($943.8 million) to ($938.5 million), month-over-month. The number of shares outstanding increased from 103.8 million in December to 105.8 million to January.
The NAV per share is based on the estimated value of the company’s assets, less the estimated value of its liabilities divided by the number of outstanding shares, all as of January 31, 2020. Altus Group U.S. Inc., a third-party firm, assisted with the valuation process.
Hines Global indicated filing with the Securities and Exchange Commission that the pandemic had negative effect on two of its retail properties that represent approximately 14 percent of its portfolio, but there are signs of recovery. Collections of rent at these properties “declined precipitously” in the early months of the pandemic. The REIT granted rent relief to many of its retail tenants in the form of deferred rent or rent abatements, which reduced rental revenue by $2.3 million for the nine months ended September 30, 2020.
However, the REIT indicated that consumer traffic at these properties has recovered to near pre-pandemic levels in recent months and rent collections have recovered to 93 percent of billed rent for the three months ended September 30, 2020.
Additionally, the REIT agreed to refund May through August rents for more than half of the students across its international student housing portfolio following the closing of nearby universities for the remainder of the 2019/2020 school year. These universities have announced a mixture of in-campus and on-line learning for the 2020/2021 school year with a delayed start.
“Values of the Hines Global’s retail and student housing properties have also been adversely impacted by the pandemic,” the REIT stated in the filing. “While it is difficult to predict the potential long-term impacts the pandemic may have on its business, the company has invested in well leased, high-quality assets using modest leverage in markets positioned for value retention and resiliency and believes its globally diversified fund is well-situated to weather this challenge.”
Hines Global registered a $2 billion follow-on offering in early December 2020, and once effective, it will be the REIT’s third public offering.
As of September 30, 2020, Hines Global Income Trust owned 20 real estate investments totaling 9.5 million square feet of space. From inception in August 2014 through November 30, 2020, the REIT raised $1.1 billion in investor equity in its public offerings. The company has raised $761.4 million in its current offering.