The board of Hines Global REIT Inc., a publicly registered non-traded real estate investment trust, will not determine a new net asset value per share of the company’s common stock in light of the coronavirus (COVID-19) pandemic.
“While the uncertainty and economic disruption caused by COVID-19 is unsettling, the company believes it is well-situated to weather this challenge,” said Hines Global REIT. “The company remains focused on managing its remaining assets and will continue to evaluate its marketing efforts with the goal of responsibly completing the liquidation of its portfolio at an appropriate time with the objective of enhancing value for and providing liquidity to its stockholders.
The company’s previous NAV per share was $6.17, as of February 14, 2019, and does not take into account previous capital distributions and liquidating distributions totaling approximately $2.95 per share. Shares originally sold for $10.00 each.
In July 2018, stockholders approved a plan of liquidation and dissolution, and the company’s original goal was to complete the liquidation and make final distributions to stockholders by July 2020. However, the COVID-19 pandemic continues to have an adverse impact on overall market conditions and the disposition process, the company said.
Hines Global REIT also noted that if it sells all of its assets by July 17, 2020, it may not distribute the cash to shareholders by that date and may instead set up a reserve for its remaining obligations and to cover its expenses as it completes its wind down and dissolution.
The REIT will continue to monitor and evaluate the situation and will update stockholders regarding any material developments.
Hines Global REIT launched in December 2008 and closed its offering in April 2014 after raising $2.7 billion in investor equity. The company’s portfolio is comprised of 12 assets located in the U.S. and abroad.