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
  • Intends to elect to qualify as a 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 and retail, as well as other real estate investments

Exit Strategy

Currently expects to consider a liquidity event 5 to 8 years following the end of this offering; exit through sales of assets or the portfolio, merger, listing or similar transaction2

Monthly Redemptions

  • One-year hold applies
  • Effective October 31, 2016, the price will be equal to the estimated per share NAV most recently disclosed by Hines Global REIT II in an SEC filing as of the date of redemption, which is presently $9.03 per share
  • Exceptions for Redemptions due to Death or Disability
    • One-year hold waived for death and disability;
    • The 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 price, the death and disability redemption price will be reduced to the then-current offering price.

Limits on Share Redemptions

  • Monthly redemption funds generally will 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
  • The board may terminate, suspend or amend the share redemption program upon 30 days’ notice without shareholder approval
  • The redemption price may be less than the original amount invested
  • Investors may not be able to redeem their shares

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.

3We 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. 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.

45.84% 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. 

55.19% 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.

6The 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.

7The Class T per share price has been rounded to the nearest whole cent and the actual per share offering price is $9.411.

Annualized
Distribution Rates3

Class A Shares4
Approximately
5.84%
Class T Shares5
Approximately
5.19%

Current Per Share Offering Prices6

Class A Shares
$9.96

Class T Shares7

$9.41