Hines Global REIT II Fast Facts

Strategy and Objectives1

  • Invest in a diversified real estate portfolio1 in markets around the world to achieve attractive total returns upon the sale of investments or other liquidity event2
  • Preserve shareholders’ invested capital and provide modest growth in the value of invested capital
  • Provide income in the form of regular, stable cash distributions3
  • Has elected to be taxed as a real estate investment trust ("REIT") for U.S. federal income tax purposes beginning with its taxable year ended December 31, 2015

Property Types

  • Domestic and international real estate that may include office, industrial, multifamily, retail, as well as other real estate investments

Exit Strategy

Currently expects to consider a liquidity event five to eight years following the end of its current public offering; exit through sales of assets or the portfolio, merger, listing or similar transaction2

Monthly Redemptions4 

Redemption
Programs
Class A Shares                       & Class T SharesClass I Shares                       & Class J Shares
     
Redemption Price $9.65; equal to the net asset value ("NAV") per share most recently disclosed by Hines Global REIT II in a public filing with the SEC.  $9.65; equal to the NAV per share most recently disclosed in a public filing with the SEC.
Hold Period One-year hold applies.

Exception for redemptions due to death and disability:

    • One-year hold waived.
    • Redemption price will be the price paid to acquire the shares from Hines Global REIT II; however, during an offering, if the price paid for the shares is higher than the then-current offering, the death and disability redemption price will reduced to the then-current offering price.
Shares are not subject to a hold period; however, shares that have not been outstanding for at least one year will be redeemed at 95% of the NAV per share applicable to the class of shares being redeemed and most recently disclosed by Hines Global REIT II in a public filing with the SEC as of the date of redemption.

Exceptions:

  • Reduced redemption price may be waived upon request for death and disability.
  • Reduced redemption price will also be waived with respect to shares issued pursuant to the distribution reinvestment plan and any shares issued as stock dividends. 
Limits on Share Redemptions
  • Redemptions will generally be limited to funds received from the distribution reinvestment plan in the prior month.
  • For any 12-month period, redemptions are limited to 5% of outstanding shares at the start of that period.
  • Redemptions are limited in any calendar quarter to an aggregate value (based on the redemption price per share in effect when the redemption is effected) of 5% of the NAV of such classes of shares as of the last calendar day of the prior calendar quarter.  During any calendar quarter, funds are further limited to 2% of the aggregate NAV per month of such classes of shares as of the last calendar day of the previous month.
 Other The board may terminate, suspend or amend the share redemption programs without shareholder approval.

The redemption price may be less than the original amount invested.

Valuations

Hines Global REIT II expects to commence quarterly valuations of its common stock beginning with the quarter following the first quarter in which a Class I Share is sold. Once quarterly valuations commence, Hines Global REIT II will publish any adjustment to the NAV per share and the offering prices of the shares between the 40th and 45th day following each completed fiscal quarter. Once quarterly valuations commence, on the first business day of each quarter, Hines Global REIT II will file a prospectus supplement to announce the specific date on which Hines Global REIT II will announce the new NAV per share and offering prices. Any new offering prices will be announces via a prospectus supplement or post-effective amendment to the registration statement filed with the SEC, together with the effective date of such new offering prices. See the prospectus for more details.

Investor Suitability

  • $70,000 income and $70,000 net worth or $250,000 net worth (in either case, net worth excludes an investor’s home, home furnishings and autos)
  • Several states have more stringent suitability standards; see the “Suitability Standards” section of the prospectus for details

Account Facts

  • Available in taxable and tax-deferred accounts
  • $2,500 minimum initial investment; $50 subsequent; see the “Suitability Standards” section of the prospectus for specific state requirements
  • 1099 reporting



1Hines Global REIT II may not achieve any of its objectives. 

2The 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. 

3Hines Global REIT II has not generated sufficient cash flows from operations to fully fund distributions paid and distributions have exceeded earnings. Therefore, some or all of Hines Global REIT II's distributions have been paid and may continue to be paid from other sources, such as proceeds from debt financings, proceeds from the public offering, cash advances by Hines Global REIT II Advisors LP (the "Advisor"), cash resulting from a waiver or deferral of fees and/or proceeds from the sale of assets. For the three months ended March 31, 2017, Hines Global REIT II funded 100% of total distributions with cash flows from financing activities, which includes offering proceeds. In order to more closely align the amount of distributions paid with operations, commencing with the quarter ended December 31, 2014, the Advisor agreed to waive the asset management fees for each quarter through December 31, 2016, to the extent that Hines Global REIT II’s modified funds from operations ("MFFO") for a particular quarter, as disclosed in its Quarterly or Annual Report, as applicable, amounts to less than the aggregate distributions declared to its stockholders for such quarter. For the quarter ended March 31, 2017, the Advisor agreed to waive asset management fees to the extent that Hines Global REIT II's MFFO for such quarter as reduced to reflect the payment of the distribution and stockholder servicing fee, as disclosed in its Quarterly Report on Form 10-Q, amounts to less than 100% of the aggregate distributions declared to its stockholders for that quarter. As a result of these waivers, the Advisor waived $1.9 million in asset management fees payable to it since inception through March 31, 2017. There can be no assurances that the Advisor will continue these waivers in future periods. Hines Global REIT II has not placed a cap on the amount of distributions that may be paid from any of these sources. The use of sources other than 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. 

4Class I Shares convert to Class J Shares upon the occurrence of certain triggering events, as more fully described in the prospectus. 

55.67% annualized distribution rate is based on the $10.64 per share offering price and assumes that the daily distribution rate ($0.001653699 per share, per day) declared beginning April 2017 is maintained for one year. For the period commencing on May 1, 2016 through March 31, 2017, the approximate annualized distribution rate was 5.47%, based on the current offering price per Class A Share and the daily distribution rate of $0.001594766 per share, per day that was declared for that period. The actual annualized distribution rate for a particular shareholder will vary based on the per share offering price paid.

6The share prices are at the maximum sales charge and include up-front selling commissions, fees and/or expenses, which reduce the amount available for investment. The 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. 

75.00% annualized distribution rate is based on the $10.06 per share offering price and assumes that the daily distribution rate declared beginning April 2017 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 $0.001653699 per share, per day less the distribution and stockholder servicing fees payable with respect to Class T Shares (as calculated on a daily basis). For the period commencing on May 1, 2016 through March 31, 2017, the approximate annualized distribution rate was 4.79%, based on the current offering price per Class T Share and the daily distribution rate of $0.001594766 per share, per day (less distribution and stockholder servicing fees payable with respect to such Class T Shares (as calculated on a daily basis)) that was declared for that period. The actual annualized distribution rate for a particular shareholder will vary based on the per share offering price paid and the total amount of distribution and stockholder fees payable. 

85.95% annualized distribution rate is based on the $9.73 per share offering price and assumes that the daily distribution rate declared beginning May 2017 is maintained for one year. Distributions for Class I Shares will be calculated based on stockholders of record each day in an amount equal to $0.001653699 per share, per day less the distribution and stockholder servicing fees payable with respect to Class I Shares (as calculated on a daily basis). The actual distribution rate for Class I Shares will vary based on the total amount of distribution and stockholder fees payable.

 Learn more about share classes here.

Class A Shares

Annualized Distribution Rate3,5
Approximately
5.67%

Current Per Share
Offering Price
6
$10.64

 

Class T Shares

Annualized Distribution Rate3,7
Approximately
5.00%

Current Per Share 
Offering Price
6

$10.06

Class I Shares

Annualized Distribution Rate3,8
Approximately
5.95%
Current Per Share 
Offering Price
6
$9.73

Please be aware that Hines Global REIT II (the “REIT”),  Hines Global REIT II Advisors LLP (the “Advisor”), Hines Interests Limited Partnership (the “Sponsor”), Hines Securities, Inc., (the “Dealer Manager”) and their respective officers, directors, employees and affiliates are not undertaking to provide impartial investment advice or to give advice in a fiduciary capacity in connection with the REIT’s public offering or the purchase of the REIT’s common stock and that the Advisor and the Dealer Manager have financial interests associated with the purchase of the REIT’s common stock, as described in the REIT’s prospectus, including fees, expense reimbursements and other payments they anticipate receiving from the REIT in connection with the purchase of the REIT’s common stock. These materials are not intended as a recommendation to make an investment in Hines Global REIT II’s common stock, and investors should consult their financial advisors before making an investment decision.