Hines Global Income Trust Secures $1.35 Billion Credit Facility
Hines Global Income Trust Inc., a publicly registered non-traded real estate investment trust sponsored by Hines and also known as HGIT, finalized a $1.35 billion credit agreement with JPMorgan Chase Bank N.A. The agreement provides the real estate investment trust with significant financial flexibility through a combination of a $650 million revolving credit facility and a $700 million term loan.
The new credit facility, which matures on March 12, 2028, with options for two one-year extensions, replaces the company’s previous credit agreement with Chase. At closing, Hines Global borrowed $740 million to repay outstanding balances from the prior agreement, which had been amended multiple times since its initial inception in July 2021.
According to HGIT, the interest rates on the loans will fluctuate based on either the alternate base rate or the adjusted term secured overnight financing rate, depending on the loan type and currency. The applicable margin, which is added to the base rate, will vary based on the company’s debt-to-asset value ratio. The agreement also includes provisions for potential increases in the revolving credit facility, allowing for a total credit facility of up to $1.75 billion, subject to certain criteria.
The credit agreement includes standard terms and conditions, such as customary events of default and financial covenants. The trust is required to maintain specific financial ratios, including debt-to-asset value, debt service coverage, and minimum net worth. Additionally, the company must maintain an “unencumbered pool” of at least five U.S. properties, valued at no less than $500 million, with an average occupancy of 80%, serving as collateral for the loans.
The announcement also noted that the lenders under the agreement and their affiliates have various relationships with the company and its affiliates involving the provision of financial services, including cash management, investment banking, and trust services.
In other HGIT news, the company declared a net asset value per share for its Class T, Class S, Class D, and Class I shares of common stock, as of Feb. 28, 2025. The NAV was $9.79 per share, the same as it was in January 31, 2025. Shares were originally priced at $10.00 each.
It declared monthly gross distributions for the month of March 2025 in the amount of $0.052. The net distributions will be payable to stockholders of record as of March 31, 2025, and will be paid on April 1.
HGIT’s fourth public offering was launched on Feb. 4, 2025. As of March 17, it had received gross proceeds of approximately $32.8 million from the sale of 3.3 million shares of its common stock through its public offering, including proceeds from its distribution reinvestment plan. Approximately $1.97 billion of its common shares remained available for sale through the offering in any combination of shares, exclusive of approximately $493.5 million of shares available under its distribution reinvestment plan.
As of March 17, HGIT had received aggregate gross proceeds of approximately $3.6 billion from the sale of shares of its common stock through its public offerings, including proceeds from its distribution reinvestment plan.
As of Feb. 28, 2025, HGIT owned interests in 44 real properties that were 97% leased and consisted of 19.1 million square feet of leasable space (based on information as of Sept. 30, 2024, but reflecting the acquisitions of Sutter Medical Plaza, Tortona Logistics and E2 Apartments, and the dispositions of Miramar Activity Business Center and Maintal Logistics). Its portfolio was 31% levered based on the valuations last month.
In January 2025, AltsWire reported that HGIT announced two major acquisitions. It acquired Tortona Logistics, an industrial property in Italy, for approximately $144 million. The December 2024 purchase includes three assets with proximity to Milan, Turin, and the port of Genoa. Two of the three are newly built and 100% leased, while the third is a forward purchase with acquisition planned upon completion later this year. Also, it purchased E2 Apartments, a $148-million Class A multifamily complex in Evanston, Ill., that is walkable to Northwestern University.
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