Hines Global REIT Declares Special Distribution
Hines Global REIT Inc., a publicly registered non-traded real estate investment trust, has declared a $1.05 per share special distribution to all stockholders of record as of December 30, 2017. The distribution will be funded in part from the net proceeds received from the sale of six assets during 2017.
The distribution represents a return of a portion of the stockholders’ invested capital from sales of investment property and will reduce their remaining investment in the company.
The special distribution is expected to be paid to stockholders in two cash payments in mid-January 2018; one payment will be allocated to the 2017 tax year and one payment will be allocated to the 2018 tax year. The special distribution designation will not impact the tax treatment of the distribution to stockholders.
The $1.05 distribution reduces the company’s per share net asset value from $10.03 per share to $8.98 per share, effective December 30, 2017.
It is important to note that the prior estimated per share NAV of $10.03 was based on estimates of the value of the company’s real estate investments, cash and other assets and debt and other liabilities as of December 31, 2016 and that no subsequent valuation has been undertaken by the REIT.
The company anticipates that an updated per share NAV will be calculated in the first quarter of 2018.
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.
