Hines Real Estate Investment Trust Declares Final Distribution
July 16, 2018 | Luke Schmidt | Blue Vault
On July 9, 2018, the board of directors of Hines Real Estate Investment Trust, Inc. approved a final distribution of $0.08 per share to be paid on or around July 31, 2018. The distribution consists of a final liquidating distribution of $0.07 per share and a settlement distribution of $0.01 per share. After giving effect to this final distribution and all special distributions previously paid, stockholders will have received aggregate distributions of approximately $7.59 per share.
The final liquidating distribution of $0.07 per share is payable to holders of record as of the close of business on July 10, 2018. The settlement distribution of $0.01 per share is payable to holders of record as of the close of business on March 2, 2018. The settlement distribution relates to a class action lawsuit filed by stockholders alleging the Company, along with its advisor and directors, breached their fiduciary duties. The $0.01 per share distribution represents the net settlement amount per share.
The Company filed its Articles of Dissolution on March 7, 2017, detailing its plan to remain in existence until it makes its final liquidating distribution. Accordingly, promptly following the payment of this final distribution, all shares of outstanding common stock will be canceled and no longer deemed to be outstanding. The dissolution will be complete, and the Company will cease to exist.
Blue Vault previously included the Company in its 5th Edition Full-Cycle Performance Study released in February 2018. Prior to this final distribution of $0.08 per share, stockholders had received aggregate distributions of $7.51 per share. Utilizing the initial offering price of $10.00 per share, shareholders would have experienced an estimated 24.9% capital loss. Taking into account this final distribution, shareholders will experience an estimated 24.1% capital loss.
Sources: SEC, Blue Vault
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