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| 8-K - HR 06 30 11 SHAREHOLDER PRESENTATION - HINES REAL ESTATE INVESTMENT TRUST INC | hreit063011shpresentation8k.htm |
Exhibit 99.1
Hines Real Estate Investments, Inc., Member FINRA/SIPC, is the Dealer Manager. 8/11
Hines Real Estate Investment Trust, Inc. (Hines REIT) is closed to new investors.
Hines REIT Update
As of June 30, 2011
Hines REIT Portfolio Summary
as of June 30, 2011
as of June 30, 2011
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Total Assets:
§58 properties; $3.5 billion1
Total Square Feet:
§Over 28 million
Portfolio Occupancy:
§89%; 4% above the national average
Total Distributions Since Inception:
§$539.7 million
Current Loan-to-Value Ratio:
§55%
Current Annualized Distribution Rate:
§5.0%2 (30% of the distribution represents a return of invested
shareholder capital)
shareholder capital)
1 Owned directly or indirectly based on estimated aggregate value.
2 Based on $10.08 share price; assumes consistent distribution rate for 12-month period. Hines REIT declared distributions
through the month of October 2011. The distribution, in an amount equal to $0.00138082 per share, per day will be paid in
January 2012 in cash or reinvested in stock for those participating in Hines REIT's dividend reinvestment plan. Of the amount
described above, $0.00041425 of the per share, per day dividend will be designated by the Company as a special distribution
which will be a return of a portion of the shareholders’ invested capital and, as such, will reduce their remaining investment in
the Company. The special distribution represents a portion of the profits from sales of investment property. The above
designations of a portion of the distribution as a special distribution will not impact the tax treatment of the distributions to our
shareholders.
through the month of October 2011. The distribution, in an amount equal to $0.00138082 per share, per day will be paid in
January 2012 in cash or reinvested in stock for those participating in Hines REIT's dividend reinvestment plan. Of the amount
described above, $0.00041425 of the per share, per day dividend will be designated by the Company as a special distribution
which will be a return of a portion of the shareholders’ invested capital and, as such, will reduce their remaining investment in
the Company. The special distribution represents a portion of the profits from sales of investment property. The above
designations of a portion of the distribution as a special distribution will not impact the tax treatment of the distributions to our
shareholders.
Hines REIT Portfolio
as of June 30, 2011
as of June 30, 2011
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Proactive Leasing Highlights
Houston, TX - Williams Tower
§Williams Companies, an integrated
natural gas company that produces,
gathers, processes and transports
natural gas
natural gas company that produces,
gathers, processes and transports
natural gas
– Executed 60,000 SF expansion
through 2018
through 2018
§Ryan and Co, a national tax audit
defense and recovery service firm
defense and recovery service firm
– Renewal of 32,000 SF through
2019
2019
§Rowan Co., an international provider
of contact drilling services
of contact drilling services
– Executed 10,000 SF expansion
through 2020
through 2020
Denver, CO - Industrial Portfolio
§Comcast (CMCAS, CMCSK),
provider of entertainment, information
and communications products and
services
provider of entertainment, information
and communications products and
services
– Executed 35,000 Square Feet
(SF) lease through 2021 at 345
Inverness
(SF) lease through 2021 at 345
Inverness
§GolfTech, focus on golf improvement
– Renewal of 13,000 SF through
2016 at Arapahoe II
2016 at Arapahoe II
Seattle, WA - 5th and Bell
§Notkin Engineering, a mechanical
engineering firm
engineering firm
– Renewal of 15,000 SF for
10 years
10 years
New York, NY -
499 Park Avenue
499 Park Avenue
§Quadrant Capital
Advisors, a national
investment advisory firm
Advisors, a national
investment advisory firm
– Renewal of 11,000
SF through 2022
SF through 2022
Hines REIT Portfolio
as of June 30, 2011
as of June 30, 2011
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Houston, TX -
Two Shell Plaza
Two Shell Plaza
§Dune Energy, an
independent exploration and
development company
independent exploration and
development company
– Renewal of 15,000 SF
through 2016
through 2016
Charlotte, NC -
Charlotte Plaza
Charlotte Plaza
§Capgemini, provider of
consulting, technology
and outsourcing services
consulting, technology
and outsourcing services
– Executed 24,000 SF
lease through 2016
lease through 2016
Proactive Leasing Highlights
Hines REIT Strategic Dispositions
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Atrium on Bay,
Toronto, ON, Canada
§Acquired: February 2007
for $215 million USD
for $215 million USD
§Sold: June 2011 for $353
million USD
million USD
§Hines REIT’s effective
ownership percentage at
date of sale: 100%
ownership percentage at
date of sale: 100%
Brazilian Industrial Parks
Araucaria, Elouveira and
Vinhedo
Vinhedo
§Acquired: December 2008
for $115 million
for $115 million
§Sold: January 2010 and
April 2010 for $141 million
April 2010 for $141 million
§Hines REIT’s effective
ownership percentage at
date of sale: 100%
ownership percentage at
date of sale: 100%
600 Lexington,
New York, NY
§Acquired: February
2004 for $92 million
2004 for $92 million
§Sold: May 2010 for
$193 million
$193 million
§Hines REIT’s effective
ownership percentage at
date of sale: 11.67%
ownership percentage at
date of sale: 11.67%
Houston, TX -
Land Parcel Adjacent to
Williams Tower
Land Parcel Adjacent to
Williams Tower
§Acquired: May 2008
§Sold: September 2010
generating net proceeds of
$12 million
generating net proceeds of
$12 million
§Hines REIT’s effective
ownership percentage at
date of sale: 100%
ownership percentage at
date of sale: 100%
Portfolio Diversification
Regional Mix1, 3
% of Total Portfolio
% of Total Portfolio
City Mix1, 3
% of Total Portfolio
% of Total Portfolio
Tenant Credit Quality1, 2
% of Total Portfolio
% of Total Portfolio
Asset Class Mix1, 3
% of Total Portfolio
% of Total Portfolio
1 Data as of June 30, 2011 and based on Hines REIT’s pro rata ownership.
2 Based on square footage
3 Based on estimated aggregate value
4 Represents all of the cities that comprise less than 1% of the total portfolio.
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Tenant Diversification
1 Data is based on Hines REIT’s effective ownership in each property based on leased square feet.
2 Represents all of the tenant industry mix categories that comprise less than 1% of the portfolio.
Tenant Industry Diversification1
% of Total Leasable Square Feet Expiring in Portfolio1
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2
Top 10 Tenants1
1.Shook, Hardy & Bacon LLP…………………………...2555 Grand
International Law Firm
International Law Firm
2.Raytheon Company …………………………………….Raytheon/DIRECTV Buildings
Defense Aerospace Systems Company
Defense Aerospace Systems Company
3.State of California ………………………………………1515 S. Street
State Government
State Government
4.Microsoft Corporation……………………………….Daytona-Laguna Portfolio
Public Multinational Software Corporation
Public Multinational Software Corporation
5.Williams Companies…………………………………….Williams Tower
Integrated Natural Gas Company
Integrated Natural Gas Company
6.Honeywell International………………………………...Daytona-Laguna Portfolio
Engineering Services Conglomerate 345 Inverness Drive
Engineering Services Conglomerate 345 Inverness Drive
7.Oracle……………………………………………………….2100 Powell
Multinational Computer Technology Company
Multinational Computer Technology Company
8.Kay Chemical……………………………………………..4050 & 4055 Corporate Drive
Private Specialty Cleaning Company
Private Specialty Cleaning Company
9.Norwegian Cruise Lines………………………………..Airport Corporate Center
Cruise Line
Cruise Line
10.American Bar Association……………………………..321 North Clark
Largest Voluntary Professional Association in the World
Largest Voluntary Professional Association in the World
Hines REIT Debt Maturity Chart
(as of June 30, 2011)
(as of June 30, 2011)
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2Amounts have been rounded to thousands for purposes of this presentation.
2
Distribution History
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We funded our cash distributions with cash flows from operating activities, distributions received from our unconsolidated investments,
proceeds from the sales of our real estate investments and cash generated during prior periods.
proceeds from the sales of our real estate investments and cash generated during prior periods.
Hines REIT Exit Strategy
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§ Overall goal is to maximize returns to investors
§ Exit strategy may include the targeted sale of individual
or groups of assets
or groups of assets
§ May also consider a sale, merger or listing on a
national exchange
national exchange
§ Will continue to identify opportunities for strategic asset sales
Current Priorities & Focus
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§ Alignment of interests
• Hines has approximately $100 million invested in Hines REIT
• Hines waived 1/3 of its cash asset management fees from
July 2011 through December 2012 to enhance the
Company’s cash flows
July 2011 through December 2012 to enhance the
Company’s cash flows
§ Total fee waiver is projected to be over $7.5 million
§ Our near-term priorities consist of:
• Leasing of existing assets in our portfolio
• Strategic asset sales
• Managing liquidity and maximizing distributions
to shareholders
to shareholders
Current Priorities & Focus
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§ Our long-term priorities consist of:
• Evaluating potential exit strategies
• Managing our debt maturities
§ These priorities are designed to assist us in maximizing
shareholder returns over the long term and returning
shareholder capital
shareholder returns over the long term and returning
shareholder capital
Hines Real Estate Investments, Inc., Member FINRA/SIPC, is the Dealer Manager. 8/11
Hines Real Estate Investment Trust, Inc. (Hines REIT) is closed to new investors.
Thank You
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