Hines Global Income Trust Earnings 2020-09-30

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

hgit-20200930

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


(Mark One)
☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2020


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 000-55599

Hines Global Income Trust, Inc.

(Exact name of registrant as specified in its charter)


Maryland		80-0947092
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

2800 Post Oak Boulevard
Suite 5000
Houston	Texas	77056-6118
(Address of principal executive offices)		(Zip code)

(888) 220-6121

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Exchange Act: None.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☐

Non-accelerated filer

☒

Smaller reporting company

☒

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13 (a) of the Exchange Act.

☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November 1, 2020, approximately 19.3 million shares of the registrant’s Class AX common stock, 18.8 million shares of the registrant’s Class TX common stock, 0.1 million shares of the registrant’s Class IX common stock, 39.4 million shares of the registrant’s Class T common stock, 10.1 million shares of the registrant’s Class D common stock and 14.8 million shares of the registrant’s Class I common stock were outstanding.

TABLE OF CONTENTS


PART I – FINANCIAL INFORMATION
Item 1.	Condensed Consolidated Financial Statements (Unaudited):
	Condensed Consolidated Balance Sheets	1
	Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)	2
	Condensed Consolidated Statements of Equity	3
	Condensed Consolidated Statements of Cash Flows	5
	Notes to the Condensed Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	27
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	52
Item 4.	Controls and Procedures	52
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	54
Item 1A.	Risk Factors	54
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	54
Item 3.	Defaults Upon Senior Securities	55
Item 4.	Mine Safety Disclosures	56
Item 5.	Other Information	56
Item 6.	Exhibits	57

Table of Contents

PART I - FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements

HINES GLOBAL INCOME TRUST, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)


	September 30, 2020		December 31, 2019
	(in thousands, except per share amounts)
ASSETS
Investment property, net	$	1,403,538	$	1,254,304

Investments in real estate-related securities	39,680		36,491
Cash and cash equivalents	74,213		45,875
Restricted cash	18,320		10,563
Derivative instruments	310		163
Tenant and other receivables, net	15,326		14,160
Intangible lease assets, net	103,546		98,537
Right-of-use asset, net	4,261		37,606
Deferred leasing costs, net	16,154		18,418
Deferred financing costs, net	1,708		2,311


Other assets	11,425		5,129
Assets held for sale	—		49,988
Total assets	$	1,688,481	$	1,573,545
LIABILITIES AND EQUITY
Liabilities:
Accounts payable and accrued expenses	$	31,858	$	29,838
Due to affiliates	36,540		42,782
Intangible lease liabilities, net	22,044		19,633
Operating lease liability	1,554		1,583
Other liabilities	18,605		21,428
Derivative instruments	—		1,079
Distributions payable	4,665		3,837
Note payable to affiliate	—		75,000
Notes payable, net	747,972		752,131
Liabilities associated with assets held for sale	—		34,713
Total liabilities	863,238		982,024

Commitments and contingencies (Note 11)	—		—

Equity:
Stockholders’ equity:
Preferred shares, $0.001 par value per share; 500,000 preferred shares authorized, none issued or outstanding as of September 30, 2020 and December 31, 2019	—		—
Common shares, $0.001 par value per share (Note 6)	99		83
Additional paid-in capital	896,686		735,545
Accumulated distributions in excess of earnings	(78,207)		(146,830)

Accumulated other comprehensive income (loss)	6,665		2,723
Total stockholders’ equity	825,243		591,521
Noncontrolling interests	—		—
Total equity	825,243		591,521
Total liabilities and equity	$	1,688,481	$	1,573,545

See notes to the condensed consolidated financial statements.

Table of Contents

HINES GLOBAL INCOME TRUST, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(in thousands, except per share amounts)
Revenues:
Rental revenue	$	29,199	$	24,699	$	89,319	$	69,167
Other revenue	620		809		2,159		1,633
Total revenues	29,819		25,508		91,478		70,800
Expenses:
Property operating expenses	8,566		6,450		23,779		17,155
Real property taxes	3,691		2,751		10,662		8,047
Property management fees	1,185		887		3,734		2,531
Depreciation and amortization	15,190		9,696		45,876		28,765
Acquisition related expenses	78		83		369		100
Asset management fees	2,974		2,177		8,512		5,465

Performance participation allocation	—		1,053		—		3,650
General and administrative expenses	1,046		972		3,370		2,767
Total expenses	32,730		24,069		96,302		68,480

Other income (expenses):

Gain (loss) on derivative instruments	(867)		(97)		7,602		(1,284)
Gain (loss) on investments in real estate-related securities	866		1,199		(3,736)		2,527
Gain on sale of real estate	39		—		130,140		—
Foreign currency gains (losses)	283		(1,186)		(862)		(1,522)
Interest expense	(5,455)		(4,257)		(15,850)		(12,772)
Interest and other income	440		624		1,152		993
Income (loss) before benefit (provision) for income taxes	(7,605)		(2,278)		113,622		(9,738)
Benefit (provision) for income taxes	594		505		2,432		516
Provision for income taxes related to sale of real estate	—		—		(7,773)		—
Net income (loss)	(7,011)		(1,773)		108,281		(9,222)
Net (income) loss attributable to noncontrolling interests	(3)		(3)		(10)		(10)
Net income (loss) attributable to common stockholders	$	(7,014)	$	(1,776)	$	108,271	$	(9,232)
Basic and diluted income (loss) per common share	$	(0.07)	$	(0.03)	$	1.15	$	(0.16)
Weighted average number of common shares outstanding	97,520		68,913		93,769		57,732











Comprehensive income (loss):
Net income (loss)	$	(7,011)	$	(1,773)	$	108,281	$	(9,222)
Other comprehensive income (loss):
Foreign currency translation adjustment	14,072		(9,265)		3,942		(9,194)
Comprehensive income (loss)	$	7,061	$	(11,038)	$	112,223	$	(18,416)
Comprehensive (income) loss attributable to noncontrolling interests	(3)		(3)		(10)		(10)
Comprehensive income (loss) attributable to common stockholders	$	7,058	$	(11,041)	$	112,213	$	(18,426)

See notes to the condensed consolidated financial statements.

Table of Contents

HINES GLOBAL INCOME TRUST, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(UNAUDITED)

(In thousands)


Hines Global Income Trust, Inc. Stockholders
	Common Shares			Additional Paid-in Capital		Accumulated Distributions in Excess of Earnings		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity		Noncontrolling Interests
	Shares	Amount
Balance as of January 1, 2020	81,847	$	83	$	735,545	$	(146,830)	$	2,723	$	591,521	$	—
Issuance of common shares	10,735	12		112,179		—		—		112,191		—

Distributions declared	—	—		—		(12,401)		—		(12,401)		(3)
Redemption of common shares	(464)	—		(5,395)		—		—		(5,395)		—
Selling commissions, dealer manager fees and distribution and stockholder servicing fees	—	—		(6,240)		—		—		(6,240)		—
Offering costs	—	—		(863)		—		—		(863)		—
Net income (loss)	—	—		—		41,749		—		41,749		3
Foreign currency translation adjustment	—	—		—		—		(15,613)		(15,613)		—

Balance as of March 31, 2020	92,118	$	95	$	835,226	$	(117,482)	$	(12,890)	$	704,949	$	—
Issuance of common shares	4,822	3		49,404		—		—		49,407		—
Distributions declared	—	—		—		(13,452)		—		(13,452)		(4)
Redemption of common shares	(1,037)	(1)		(11,399)		—		—		(11,400)		—
Selling commissions, dealer manager fees and distribution and stockholder servicing fees	—	—		(4,009)		—		—		(4,009)		—
Offering costs	—	—		(987)		—		—		(987)		—
Net income (loss)	—	—		—		73,536		—		73,536		4
Foreign currency translation adjustment	—	—		—		—		2,323		2,323		—
Foreign currency translation adjustment reclassified into earnings	—	—		—		—		3,160		3,160		—
Balance as of June 30, 2020	95,903	$	97	$	868,235	$	(57,398)	$	(7,407)	$	803,527	$	—
Issuance of common shares	3,827	3		37,684		—		—		37,687		—
Distributions declared	—	—		—		(13,795)		—		(13,795)		(3)
Redemption of common shares	(837)	(1)		(7,246)		—		—		(7,247)		—
Selling commissions, dealer manager fees and distribution and stockholder servicing fees	—	—		(1,032)		—		—		(1,032)		—
Offering costs	—	—		(955)		—		—		(955)		—
Net income (loss)	—	—		—		(7,014)		—		(7,014)		3
Foreign currency translation adjustment	—	—		—		—		14,072		14,072		—
Balance as of September 30, 2020	98,893	$	99	$	896,686	$	(78,207)	$	6,665	$	825,243	$	—

Table of Contents


Hines Global Income Trust, Inc. Stockholders
	Common Shares			Additional Paid-in Capital		Accumulated Distributions in Excess of Earnings		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity		Noncontrolling Interests
	Shares	Amount
Balance as of January 1, 2019	43,584	$	44	$	371,274	$	(91,711)	$	(874)	$	278,733	$	—
Issuance of common shares	6,109	7		62,886		—		—		62,893		—

Distributions declared	—	—		—		(6,704)		—		(6,704)		(3)
Redemption of common shares	(362)	—		(4,014)		—		—		(4,014)		—
Selling commissions, dealer manager fees and distribution and stockholder servicing fees	—	—		(4,366)		—		—		(4,366)		—
Offering costs	—	—		(1,240)		—		—		(1,240)		—
Net income (loss)	—	—		—		(4,002)		—		(4,002)		3
Foreign currency translation adjustment	—	—		—		—		(2,020)		(2,020)		—
Balance as of March 31, 2019	49,331	$	51	$	424,540	$	(102,417)	$	(2,894)	$	319,280	$	—
Issuance of common shares	11,785	11		121,908		—		—		121,919		—
Distributions declared	—	—		—		(8,062)		—		(8,062)		(4)
Redemption of common shares	(402)	—		(3,111)		—		—		(3,111)		—
Selling commissions, dealer manager fees and distribution and stockholder servicing fees	—	—		(8,511)		—		—		(8,511)		—
Offering costs	—	—		(1,048)		—		—		(1,048)		—
Net income (loss)	—	—		—		(3,454)		—		(3,454)		4
Foreign currency translation adjustment	—	—		—		—		2,091		2,091		—
Balance as of June 30, 2019	60,714	$	62	$	533,778	$	(113,933)	$	(803)	$	419,104	$	—
Issuance of common shares	12,064	11		124,687		—		—		124,698		—
Distributions declared	—	—		—		(9,708)		—		(9,708)		(3)
Redemption of common shares	(282)	(1)		(3,480)

Price	-0.00	EPS	-0
Shares	69	P/E	0
MCap	-0	P/FCF	-0
Net Debt	645	EBIT	-18
TEV	645	TEV/EBIT	-36
TTM 2019-09-30, in MM, except price, ratios

10-Q	2020-09-30	Filed 2020-11-13
10-Q	2020-06-30	Filed 2020-08-14
10-Q	2020-03-31	Filed 2020-05-15
10-K	2019-12-31	Filed 2020-03-30
10-Q	2019-09-30	Filed 2019-11-13
10-Q	2019-06-30	Filed 2019-08-14
10-Q	2019-03-31	Filed 2019-05-14
10-K	2018-12-31	Filed 2019-03-29
10-Q	2018-09-30	Filed 2018-11-14
10-Q	2018-06-30	Filed 2018-08-14
10-Q	2018-03-31	Filed 2018-05-11
10-K	2017-12-31	Filed 2018-03-29
10-Q	2017-09-30	Filed 2017-11-09
10-Q	2017-06-30	Filed 2017-08-14
10-Q	2017-03-31	Filed 2017-05-15
10-K	2016-12-31	Filed 2017-03-27
10-Q	2016-09-30	Filed 2016-11-09
10-Q	2016-06-30	Filed 2016-08-12
10-Q	2016-03-31	Filed 2016-05-10
10-K	2015-12-31	Filed 2016-03-24
10-Q	2015-09-30	Filed 2015-11-09
10-Q	2015-06-30	Filed 2015-08-13
10-Q	2015-03-31	Filed 2015-05-13
10-K	2014-12-31	Filed 2015-03-25
10-Q	2014-09-30	Filed 2014-11-10

8-K	2020-11-13
8-K	2020-11-13
8-K	2020-10-16
8-K	2020-09-16
8-K	2020-09-09
8-K	2020-08-31
8-K	2020-08-17
8-K	2020-07-17
8-K	2020-07-06
8-K	2020-06-22
8-K	2020-06-16
8-K	2020-05-14
8-K	2020-04-29
8-K	2020-04-21
8-K	2020-04-20
8-K	2020-04-16
8-K	2020-03-19
8-K	2020-03-17
8-K	2020-02-19
8-K	2020-02-13
8-K	2020-01-29
8-K	2020-01-27
8-K	2020-01-16
8-K	2019-12-18
8-K	2019-12-17
8-K	2019-12-11
8-K	2019-12-11
8-K	2019-11-21
8-K	2019-11-14
8-K	2019-11-14
8-K	2019-10-17
8-K	2019-09-30
8-K	2019-09-26
8-K	2019-09-25
8-K	2019-09-24
8-K	2019-09-19
8-K	2019-09-16
8-K	2019-08-16
8-K	2019-07-17
8-K	2019-06-14
8-K	2019-05-23
8-K	2019-05-16
8-K	2019-05-06
8-K	2019-04-29
8-K	2019-04-15
8-K	2019-04-12
8-K	2019-03-15
8-K	2019-02-14
8-K	2019-01-16
8-K	2018-12-31
8-K	2018-12-18
8-K	2018-12-14
8-K	2018-12-13
8-K	2018-11-15
8-K	2018-11-08
8-K	2018-10-17
8-K	2018-10-03
8-K	2018-10-01
8-K	2018-10-01
8-K	2018-09-20
8-K	2018-09-14
8-K	2018-09-04
8-K	2018-08-17
8-K	2018-08-16
8-K	2018-08-01
8-K	2018-07-27
8-K	2018-07-17
8-K	2018-07-09
8-K	2018-06-15
8-K	2018-06-01
8-K	2018-05-15
8-K	2018-05-01
8-K	2018-04-16
8-K	2018-04-02
8-K	2018-03-30
8-K	2018-03-06
8-K	2018-03-01
8-K	2018-02-01
8-K	2018-01-02

EX-31.1	hgitexhibit3119302020.htm
EX-31.2	hgitexhibit3129302020.htm
EX-32.1	hgitexhibit3219302020.htm

HGIT 10Q Quarterly Report

Hines Global Income Trust Earnings 2020-09-30