The board of Hines Global REIT Inc., a publicly registered non-traded real estate investment trust, approved a new net asset value per share of $9.04 for the company’s common stock as of December 31, 2017, according to a filing with the Securities and Exchange Commission.
Last year, the board declared a NAV per share of $10.03 as of December 31, 2016, which was reduced to $8.98 per share in January 2018 following a $1.05 per share special distribution. The distribution was funded in part from the net proceeds received from the sale of six assets during 2017.
The estimated per share NAV is based on the estimated value of the company’s assets less the estimated value of its liabilities, divided by the approximate number of shares outstanding on a fully diluted basis.
The new NAV per share utilized guidelines established by the Investment Program Association, except that it includes an estimate of closing costs that the company would expect to incur related to a potential liquidity event.
Cushman & Wakefield Inc. provided appraisals of the company’s domestic property investments, Knight Frank LLP provided appraised values of international real estate investments, and Jones Lang LaSalle performed valuations of the company’s debt obligations, all as of December 31, 2017.
In addition, the company engaged Altus Group U.S. Inc. to review the appraisals and valuations to assess the reasonableness of the company’s new per share NAV.
The total value of the REIT’s real estate investments as of December 31, 2017 was $4.4 billion, a 13 percent increase compared to their net purchase price.
Hines Global REIT, which commenced its initial public offering in August 2009, raised $2.9 billion in investor equity in its two public offerings, the last of which closed in April 2014. The company’s multi billion portfolio is comprised of 37 properties located in the United States and abroad.