Investing Worldwide for Income and Growth®
Looking for a product that can complement your traditional investment mix while adding the potential for income and growth to your portfolio? Tap into the diversity of real estate markets worldwide with Hines Global REIT II, a public non-traded REIT that is sponsored by Hines, one of the largest, privately owned global real estate firms in the world.1
1Hines is the sponsor of Hines Global REIT II. Investors are not acquiring an interest in Hines.
2We have not generated sufficient cash flows from operations to fully fund distributions paid. Therefore some or all of our distributions have been and may continue to be paid from other sources, such as proceeds from our debt financings, proceeds from the Offering, cash advances by our Advisor, cash resulting from a waiver or deferral of fees and/or proceeds from the sale of assets. We have not placed a cap on the amount of our distributions that may be paid from any of these sources. For example, for the nine months ended September 30, 2016, we funded 46% of total distributions with cash flows from financing activities, which included offering proceeds. For the nine months ended September 30, 2015, we funded 9% of total distributions with cash flows from financing activities, which includes offering proceeds. Commencing with the quarter ended December 31, 2014, our Advisor agreed to waive the asset management fees for each quarter through December 31, 2016, to the extent that our MFFO, for a particular quarter, as disclosed in our Quarterly Report on Form 10-Q or Annual Report on Form 10-K, as applicable, amounts to less than the aggregate distributions declared to our stockholders for such quarter. As a result of these waivers, our Advisor waived $1.0 million and $268,024 in asset management fees payable to it for the nine months ended September 30, 2016 and 2015, respectively. Also, as a result of these waivers, cash flows from operations that would have been paid to our Advisor for asset management fees may be available to pay distributions to stockholders. These fee waivers are not deferrals and accordingly, any fees that are waived will not be paid to our Advisor in cash at any time in the future. There can be no assurances that our Advisor will continue this waiver in future periods. We have not placed a cap on the amount of our distributions that may be paid from any of these sources. The use of sources other than our cash flows from operations to fund distributions could lower returns and the payment of distributions from offering proceeds constitutes a return of principal. If the advisor had not waived fees, distributions would have been paid from an investor’s paid in capital, which lowers returns. The availability and timing of distributions Hines Global REIT II may pay is uncertain and cannot be assured. The Hines Global REIT II board of directors may also amend or terminate the distribution reinvestment plan for any reason upon 10 days’ prior notice.
35.84% annualized distribution rate is based on the $9.96 per share offering price and assumes the daily distribution rate ($0.001594766 per share, per day) declared since May 2016 is maintained for one year.
45.19% annualized distribution rate is based on the $9.411 per share offering price and assumes the daily distribution rate declared since May 2016 is maintained for one year. Distributions for Class T Shares will be calculated based on stockholders of record each day in an amount equal to $0.001594766 per share, per day less the distribution and stockholder servicing fees that are payable with respect to such Class T Shares (as calculated on a daily basis). The actual distribution rate for Class T Shares will vary based on the total amount of distribution and stockholder fees payable.
5The share prices were determined by the Hines Global REIT II board of directors in its sole discretion, do not represent the current value of the properties in the portfolio, and may be higher or lower than the value of the properties in the portfolio at any given time. The share prices include up-front selling commissions, fees and expenses, which reduce the amount available for investment.
6The Class T per share price has been rounded to the nearest whole cent and the actual per share offering price is $9.411.
7Hines Global REIT II may not achieve any of its objectives.
8The Hines Global REIT II board of directors has the sole discretion to consider a liquidity event at any time if it determines such event to be in Hines Global REIT II’s best interests. A liquidity event is not guaranteed and may be postponed.
Class A Shares3
Class T Shares4
Current Per Share Offering Prices5
Class A Shares6
Class T Shares6