Hines Global REIT Announces $6.17 Net Asset Value Per Share
February 18, 2019 | James Sprow | Blue Vault
On February 14, 2019, Hines Global REIT’s board of directors determined a new per share net asset value (“NAV”) of the company’s common stock of $6.17 as of February 14, 2019. This new per share NAV is lower than the previously determined per share NAV of $9.04 as of December 31, 2017, primarily as a result of the return of invested capital distributions and liquidating distributions declared by the company in 2018 and 2019, which aggregated to approximately $2.95 per share.
In establishing the per share NAV of $6.17, the company used appraised values of its real estate property investments as of December 31, 2018, except for 55M Street and 550 Terry Francois, which were excluded because they were sold in early 2019. The company also obtained valuations of its debt obligations as of December 31, 2018. Additionally, the company’s board of directors included in its determination the values of other assets and liabilities such as cash, tenant receivables, accounts payable and accrued expenses, distributions payable and other assets and liabilities, all of which were valued at cost, and an estimate of closing costs that the company expects to incur related to the liquidation of its remaining properties pursuant to the Plan. These other assets and liabilities were also adjusted to include the effects of monthly distributions and redemptions paid in early 2019, the sales of 55M Street and 550 Terry Francois in early 2019, and the $2.50 per share liquidating distribution that was declared in February 2019. No liquidity discounts or discounts relating to the fact that the company is externally managed were applied to the per share NAV and no attempt was made to value the company as an enterprise.
The aggregate value of the company’s real estate property investments owned as of February 14, 2019 represented a 12.7% increase compared to their aggregate net purchase price. The net asset value per share before estimated closing costs was $6.44 and estimated closing costs were $0.27 per share.
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