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Hines Global REIT II Announces 6.9% Increase in NAV Per Share

March 2, 2017

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Hines Global REIT II Announces 6.9% Increase in NAV Per Share

March 2, 2017 | by James Sprow | Blue Vault

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In an 8-K filing with the SEC on February 27, Hines Global REIT II and its board’s valuation committee approved a net asset value (“NAV”) of its common stock of $9.65 per share based on the number of shares issued and outstanding as of December 31, 2016. The new estimated NAV represents a 6.9% increase over the previously determined estimated NAV per share of $9.03 as of February 29, 2016.

Additionally, on February 27, 2017, the board of directors also approved the new primary offering prices of $10.64 per Class A share of common stock and $10.06 per Class T share of common stock. The new per share offering prices will take effect on March 9, 2017.

The REIT engaged Cushman and Wakefield, Inc., an independent third party real estate advisory and consulting firm to provide third party appraisals for each of its real estate properties as of December 31, 2016. They also engaged Jones Lang LaSalle, an independent third party real estate advisory and consulting services firm, to perform valuations of the REIT’s debt obligations as of December 31, 2016.

The aggregate appraised value of the REIT’s real estate investments as of December 31, 2016 was $409.1 million, which represents a 5.2% net increase when compared to the previously determined appraised value of its assets as of February 29, 2016, including the purchase price of the real estate investments acquired since that time. This 5.2% net increase resulted from a 6.4% appreciation in the aggregate appraised values of its real estate investments since their appraisals on February 29, 2016, including the purchase price of the real estate investments acquired since that time, which was offset by a 1.2% dilution resulting from the devaluation of the Euro against the U.S dollar from February 29, 2016 to December 31, 2016.

The aggregate appraised value of its real estate property investments also represents an 8.3% increase when compared to the purchase price of the real estate investments excluding closing costs, transaction fees and additional capital investments since their acquisition.  This 8.3% net increase resulted from a 10.6% appreciation in the aggregate appraised values of the REIT’s real estate investments since their purchase, which was offset by 2.3% dilution resulting from the devaluation of the Euro against the U.S dollar.

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Gil Armour, CFP
February 3, 2016

I have been using Blue Vault Partners for the past five years.  I have found them to be a valuable, unbiased resource when it comes to evaluating and comparing non-traded REITs.  The reports help me analyze which sponsors are doing a responsible job of managing their offerings.  This allows me to limit my REIT recommendations to only the most competitive products, and then track those REITs throughout their life cycle.