Hines Global REIT Declares December 2018 Distributions, Ends Monthly Distributions
December 20, 2018 | SEC.gov
December 2018 Liquidating Distributions
As previously disclosed in filings made by the Company with the SEC, with the approval of its stockholders in July 2018, the Company adopted a plan of liquidation and dissolution (the “Plan”), pursuant to which it expects to make aggregate liquidating distributions in the range of $8.83 to $9.83 per share (as estimated by the Company’s board of directors (the “Board”) in April 2018). Accordingly, any distributions paid by the Company after July 2018 will be liquidating distributions pursuant to the Plan. The Board has authorized the Company to declare a liquidating distribution on the Company’s common stock, in an amount per share equal to $0.0541667, to the Company’s stockholders of record at the close of business on December 31, 2018. These liquidating distributions will be paid in cash on January 2, 2019. In addition, all liquidating distributions will be designated by the Company as a return of a portion of the stockholders’ invested capital and, as such, will reduce the stockholders’ remaining investment in the Company. The designation of the distribution as a return of invested capital will not impact the tax treatment of the distributions to the Company’s stockholders. Although the Company has provided an estimated range of aggregate liquidating distributions, the Company cannot determine at this time when, or potentially whether, it will be able to make additional liquidating distributions to its stockholders or the amount of any such distributions, other than as described below.
February 2019 Liquidating Distribution and NAV
Since July, the Company has sold or entered into contracts to sell 21 properties representing 7.7 million square feet for an aggregate sale price of $2.0 billion. Once all of these pending property sales are completed, the Company expects to make a liquidating distribution to its shareholders. Assuming these property sales are completed in the time frame the Company expects, shareholders can expect to receive another liquidating distribution on or around February 15, 2019, subject to authorization by the Board. At that time, the Company also expects the Board to declare a new per share net asset value (“NAV”), following the completion of the annual third-party valuations.
Changes Related to the Plan of Liquidation
The Board believes it is in the best interest of the Company’s shareholders to implement the following changes to ensure a strong financial position as the Company prepares for its ultimate liquidation and dissolution. These changes are in line with common practice within the industry when executing a plan of liquidation and are consistent with the actions anticipated under the Plan:
End of Monthly Distributions: The Company has provided reliable monthly distributions to shareholders of record since 2009. Due to the fact that the Company has already sold a significant number of assets and the Company’s expectation that it will sell the remaining assets in the time frame anticipated under the Plan, the Company has determined to stop paying monthly distributions after December 2018. Any future distributable income earned from the remaining properties in the Company’s real estate portfolio will simply be included i the future liquidating distributions the shareholders receive.
Suspend Share Redemption Program (“SRP”): The Board has determined to suspend the SRP, effective on February 2, 2019, except for the redemption requests related to the death or disability of the shareholder.
Source: SEC
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