Hines Global REIT Announces New Estimated NAV of $10.03
March 1, 2017 | by James Sprow | Blue VaultĀ
In order to assist broker dealers that participated in the public offerings of Hines Global REIT, Inc. (the āCompanyā) in meeting their customer account statement reporting obligations under NASD Conduct Rule 2340, on FebruaryĀ 27, 2017, the Companyās board of directors determined a new estimated per share net asset value (āNAVā) of the Companyās common stock of $10.03 as of December 31, 2016. This new estimated per share NAV represents a 2.0% decrease over the previously determined estimated per share NAV of $10.24 as of December 31, 2015. The new estimated per share NAV was determined utilizing the guidelines established by IPA Practice Guideline 2013-01 – āValuation of Publicly Registered, Non-Listed REITsā issued April 29, 2013, except that it includes the estimate of closing costs that the Company would expect to incur related to a future potential liquidity event.
The Company engaged Cushman & Wakefield, Inc., an independent third party real estate advisory and consulting firm, to provide appraised values of the Companyās domestic real estate property investments as of DecemberĀ 31, 2016. Additionally, the Company engaged Knight Frank, LLP, or Knight Frank, an independent third party real estate advisory and consulting services firm, to provide appraised values of the Companyās international real estate investments as of DecemberĀ 31, 2016. The Company also engaged Jones Lang LaSalle, an independent third party real estate advisory and consulting services firm, to perform valuations of the Companyās debt obligations as of DecemberĀ 31, 2016.
Additionally, the Company engaged Altus Group U.S. Inc., or Altus, to review the appraisals provided by Cushman and Knight Frank and to assess the reasonableness of the Companyās new estimated per share NAV. Altus concluded that the new estimated per share NAV determined by the Companyās board of directors was reasonable.
The aggregate value of the Companyās real estate property investments as of December 31, 2016 was $5.1 billion, including amounts attributable to noncontrolling interests, which represents a 1.1% net decrease when compared to the previously determined value of the Companyās assets as of December 31, 2015 (including adjustments for properties acquired during 2016 and the effect of properties disposed of during 2016).Ā This 1.1% net decrease resulted from 2.5% appreciation in the aggregate values of the Companyās real estate property investments as offset by 3.6% dilution resulting from the devaluation of foreign currencies against the U.S. dollar.
The aggregate value of the Companyās real estate property investments as of December 31, 2016 also represented a 9.4% increase compared to the net purchase price of the real estate property investments of $4.7 billion, excluding closing costs, transaction fees and additional capital investments since acquisition.
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