Hines REIT Board Approves Final Liquidating Distribution
The board of Hines Real Estate Investment Trust Inc., a publicly registered non-traded REIT, has approved a final distribution of $0.08 per share to be paid around July 31, 2018.
The board of Hines Real Estate Investment Trust Inc., a publicly registered non-traded REIT, has approved a final distribution of $0.08 per share to be paid around July 31, 2018.
The $0.08 per share distribution consists of a $0.07 per share final liquidating distribution and a $0.01 per share class action settlement payment, which will be paid to stockholders of record as of March 2, 2018. Shortly after issuing the final distribution payment, the company will wind up operations.
Stockholders approved the REIT’s plan of liquidation and dissolution in November 2016. Hines REIT completed the sale of its assets and declared an initial liquidating distribution of $6.20 per share in December 2016 and a $0.30 per share liquidating distribution in April 2017.
The company previously distributed $1.01 per share from July 2011 through April 2013 which was also designated as a partial return of invested capital to stockholders.
After receiving the $0.08 per share final distribution, investors will have received total special and liquidating distributions of approximately $7.59 per share in addition to regular annual distributions paid between 2004 thru 2016. Share were originally sold for $10.00 each.
The $0.01 per share class action settlement distribution stems from a class action lawsuit filed by stockholders in the Circuit Court of Maryland for Baltimore City alleging that Hines REIT, its advisor, and directors breached their fiduciary duties, caused the waste of corporate assets, and misappropriated corporate assets in connection with certain payments made in connection with the company’s plan of liquidation. The company previously told shareholders that it “strongly believes that the lawsuit has no merit.”
Hines REIT, which was formed in August 2003 to invest in commercial real estate with a focus on office properties, has raised $2.6 billion in investor equity prior to closing its offering in December 31, 2009. Stockholders approved the REIT’s plan of liquidation and dissolution in November 2016. Hines REIT was the first of three non-traded REITs sponsored by international real estate firm Hines.
