Hines Global REIT’s Liquidating Trust Declares $1.00 Special Distribution, Revised NAV
July 15, 2020
Hines Global REIT Inc., which recently completed its liquidation by transferring its entire assets and liabilities to the newly created HGR Liquidating Trust, said HGR declared a special distribution of $1.00 per trust unit.
The distribution is payable in cash on July 31 to HGR’s unit holders of record at the close of business July 15.
Following the payment, Hines and HGR will have made total special distributions, including return of invested capital distributions and liquidating distributions of about $5.00 per share/unit between January 2018 and July 2020.
In addition to the $5.00 of special distributions, the Company paid $5.64 of regular operating distributions since the inception of the Company, for a combined total of $10.64 in aggregate distributions paid to investors since inception. The amount of regular operating distributions received by each investor depends on when the investment was made and will be lower for those who invested after inception.
On July 9, 2020, the Board determined a new per unit net asset value (“NAV”) of $5.58 as of June 30, 2020. This new per unit NAV is approximately 10% lower than the per share NAV of $6.17 previously determined as of February 14, 2019. This decrease is primarily the result of declines in values of the Trust’s four remaining retail assets, including the most recent negative impact related to the COVID-19 pandemic. Following the establishment of the per unit NAV as of June 30, 2020, the Board adjusted the NAV to reflect the effect of the special distribution described above of $1.00 per unit to be paid on July 31, 2020, resulting in a new per unit NAV of $4.58 as of July 15, 2020 (the record date for the special distribution).
Sources: S&P Global Market Intelligence, SEC
