Leadership Changes at Hines Global Income Trust for the New Year
December 17, 2019 | Staff Writer | Blue Vault
Hines Global Income Trust Inc. board approved leadership transitions Dec. 11 and announced that Sherri W. Schugart’s role of CEO and president would be transitioned to Jeffrey Hines and Alfonso Munk, respectively. She will continue to serve as an executive adviser to the new CEO, board and management through July 2020.
Schugart will remain a director, CEO, and president of Hines Global REIT Inc. and as chairman and CEO of HMS Income Fund Inc., as well as assume management roles at other Hines Interests LP-affiliated entities and funds through July 2020. She has served in a variety of senior leadership and management capacities with the company since 1995.
Hines will remain chairman at Hines Global Income, while Munk will add the president title to his role as chief investment officer – Americas, which he assumed in October. Additionally, David Steinbach, who was elected a board member in September, is transitioning his responsibilities as Hines Global Income’s chief investment officer, into CIO – Americas and CIO – Europe. Alex Knapp, CIO – Europe for Hines Interests, will take over the same role at Hines Global Income. All leadership transitions will become effective Dec. 31.
Hines Global REIT is a public, non-listed real estate investment trust sponsored by Hines. It is currently in the liquidating phase of its life cycle. A Plan of Liquidation was approved by shareholders in July 2018. It commenced operations in 2014 and invested in commercial real estate investments located in the United States and internationally.
It had total assets of $1.354.4 million as of September 30, 2019: $1,104.8 million represent real estate assets, $48.9 cash, $36.2 million securities, and $164.5 million in other assets.
The Company sold its interests in six properties for an aggregate sales price of $1.0 billion during 2017, 20 properties in 2018 for an aggregate sales price of $1.7 billion, and two properties in the first quarter of 2019 for an aggregate sales price of $477.8 million. As of September 30, 2019, the Company owned interests in 12 real estate investments consisting of: three domestic office investments, four domestic other investments, four international office investments, and one international other investment.
The REITs return on assets was 5.32% over the last 12 months, below the median ROA for all nontraded REITs for the previous four quarters of 6.22%, and it had a positive leverage contribution due to its 2.57% average cost of debt and 54.6% debt ratio. About 29.4% of the REITs debt matures before 2021 and 77.8% is at unhedged variable rates, indicating near-term refinancing needs and substantial interest rate risk. Since inception, the REIT has paid out only 48% of estimated MFFO in cash distributions, excluding DRIP, and this rate was estimated at 51% for the last four quarters, a sustainable cash distribution payout rate.
Sources: Bloomberg, Blue Vault, S&P Global Market Intelligence
