Hines Global REIT to Pay Partial Liquidating Distribution
September 6, 2018 | James Sprow | Blue Vault
Hines Global REIT Inc., a publicly registered non-traded REIT, has declared a partial liquidating distribution of $0.05417 to the company’s stockholders of record at the close of business on September 28, 2018. The distributions will be paid in cash on October 1, 2018. The partially liquidating distribution was announced in an 8-K filing on September 4, 2018.
Pursuant to the July 2018 plan of liquidation, the company expects to make aggregate liquidating distributions in the range of $8.83 to $9.83 per share. Initial shareholders are expected to receive total distributions between $15.62 to $16.62 per share. Shares were originally sold for $10.00 each beginning in August 2009. Based upon the original $10.00 offering price, the REIT has been making quarterly distributions at the annualized rate of 6.50%. If actual liquidating distributions fall within the estimated $8.83 to $9.83 range, the average annualized rate of return to early investors will be below 6.50%.
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.
On August 24, 2018, Hines Global REIT Properties LP, a subsidiary of Hines Global REIT, Inc., sold all of the membership interests in its wholly-owned subsidiaries that own the properties in the Fiege Mega Centre, the Harder Logistics Portfolio, and the Simon Hegele Logistics property (collectively, the “German Logistics Properties”) to Gemini German Majority Holdco S.à r.l. and Gemini German Minority Holdco S.à r.l. The purchasers are part of the Blackstone Group and are not affiliated with Hines Global or its affiliates.
The sales price for the German Logistics Properties was approximately €310.0 million (approximately $359.6 million based on an exchange rate of $1.16 per EUR) in aggregate, exclusive of transaction costs and closing prorations. The Blackstone affiliate is also purchasing a portfolio comprised of five logistics facilities located in Warsaw, Katowice, and Wroclaw, Poland for approximately $167.3 million. The sale is expected to close this month.
Hines Global REIT began its initial public offering in August 2009, raising approximately $2.74 billion during the offering, including DRIP proceeds. As of June 30, 2018, the REIT had $3.36 billion in total assets and $2.60 billion in net real estate assets. Blue Vault reports that the REIT has had cumulative MFFO since inception of $1.01 billion and paid total cash distributions (excluding DRIP proceeds) of $511 million, for a cumulative cash payout ratio of 51% of MFFO since inception and 71% over the past 12 months.
Sources: SEC, Blue Vault
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