Hines Global REIT Losses – Update, September 2021
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Hines Global REIT Losses
The White Law Group continues to investigate potential claims involving Hines Global REIT losses and the liability that brokerage firms may have for improperly recommending the high-risk non-traded REIT to investors.
Update on September 27, 2021
According to a letter to Hines Global REIT investors on September 23, the REIT declared a NAV (net asset value) of $2.09 per share in March 2021, and doesn’t expect the Trust to generate taxable income to investors for 2021.
HGR Liquidating Trust has declared a special distribution of $0.80 per unit to be processed on or around September 29 to unitholders of record as of September 29, 2021, according to the letter. This will reduce investors’ remaining investment in the Trust, adjusting the NAV to $1.29 per unit. After this special distribution is paid, the REIT notes that it has paid aggregate distributions of $13.89 per unit to holders who have been invested since the inception of Hines Global REIT, Inc.
Update on July 6, 2020
According to reports on May 4, 2020, the board of Hines Global REIT, a publicly listed non-traded REIT has delayed the determination of a new net asset value per share of the company’s common stock due to the coronavirus (COVID-19) global pandemic.
The REIT’s most recent Net Asset Value as of February 2019, was $6.17 per share and the shares were originally sold for $10 per share. This does not take into account previous distributions of $2.95 that were paid to shareholders.
Update on April 13, 2020 – Tender Offer Price may Indicate Losses for Investors
Mackenzie Realty Capital recently extended a tender offer to investors to purchase shares of Hines Global REIT for just $1.50 per share. According to Mackenzie’s letter to investors on April 13, in conjunction with its Plan of Liquidation, Hines’ ordinary redemptions were suspended on February 2, 2019. Currently, the share repurchase program is only available for hardship cases, like the death or disability of a shareholder.
The REIT’s original plan was to liquidate and make final distributions by July 17, 2020, according to the offer letter. Unfortunately, the COVID-19 pandemic and its impact to the global economic environment is expected to have “an adverse impact on overall market conditions and the Company’s disposition process.” As a result Hines says there can be no assurances regarding the timing or amounts of “any additional liquidating distributions or that the Company will make the final distribution on or before July 17, 2020.”
According to SEC filings last month, the Board has authorized Hines Global REIT 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 were to be paid in cash on January 2, 2019.
According to the company, “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.”
According to the filings, “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.”
Changes Related to the Plan of Liquidation
Update on May 26, 2019 – End of Monthly Distributions:
The Company says that “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.”
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.
Non-traded REITS, like Hines Global REIT, are considerably more complex than traditional investments and usually involve a high degree of risk. Unfortunately many investors were unaware of the risks and liquidity problems associated with non-traded REITs, when they were sold the investments.
Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Recommendations should be in line with the investor’s age, risk tolerance, net worth, and investment experience.
If a broker dealer fails to adequately disclose risks or make unsuitable investment recommendations, it can be held liable for investment losses.
If you have suffered from Hines Global REIT losses, the securities attorneys at The White Law Group may be able to help you. Please call The White Law Group at 1-888-637-5510 for a free consultation with an experienced securities attorney.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, TN.
For more information on The White Law Group and its representation of investors, please visit our website at www.whitesecuritieslaw.com
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