As an investor, it can be challenging to choose which stocks or investment trusts to bet on. It can be even more nerve-wracking when it comes to global investing, as markets can be volatile, and political and economic factors may come into play.
One particular investment trust, Hines Global Income Trust, has garnered attention from investors due to its high-profile parent company and promising returns. But is Hines Global Income Trust a good investment? In this article, we’ll take a closer look at the trusts’ history, management, portfolio, and returns to help you determine if it can be a valuable addition to your portfolio.
Hines Global Income Trust History
Hines Global Income Trust (HGIT) was founded in 2014 by global real estate investment giant, Hines. The company has a long-standing reputation for creating innovative and sustainable real estate projects that maximize returns for investors.
With over $144 billion in assets under management, a foot in 219 cities across 23 countries, and 60 years of real estate experience, Hines provided Hines Global Income Trust with a sturdy foundation. Hines Global Income Trust went public on the Nasdaq OMX in 2016, offering investors access to a diversified portfolio of high-quality real estate assets worldwide.
Hines Global Income Trust invests in several sectors like industrial, office, retail, multifamily, and hotel properties, among others. The company has various properties in the United States, Europe, and Australia. By investing in Hines Global Income Trust, investors can gain exposure to global real estate markets, which can diversify their investment portfolios.
Hines Global Income Trust Management
Hines Global Income Trust is managed by a team of seasoned professionals with vast experience in real estate investment and asset management. The team strives to adhere to Hines’s core values of integrity, teamwork, leadership, excellence, and respect in managing the trust.
They ensure effective decision-making, disciplined management, and risk mitigation strategies. It’s essential to note that the management team has a direct financial stake in the trust, aligning their interests with the investors.
Hines Global Income Trust Portfolio
Hines Global Income Trust has a diversified portfolio of high-quality, income-producing real estate assets worldwide. The trust invests in a broad range of properties, including residential, retail, office, and industrial assets.
The portfolio includes assets across primary and secondary markets, making it geographically diversified and less exposed to market cycles, supply and demand shocks, or currency fluctuations. As of Q2 2021, the trust had 50 properties in 10 countries worth $1.8 billion and a 91.8% occupancy rate.
Hines Global Income Trust Returns
Investors are most interested in the returns they can expect from Hines Global Income Trust. The trust aims to deliver stable and predictable income distributions while seeking capital appreciation over the long term.
The trust has a track record of delivering stable and increasing distributions, with a current annualized distribution rate of 5.25%. In the last five years, the trust has generated a cumulative total return of 43.92% and an average annual return of 7.41%.
However, past performance does not guarantee future returns, and investors should consider their risk tolerance and investment goals when investing in Hines Global Income Trust or any other investment.
Factors to Consider Before Investing
Before investing in Hines Global Income Trust, investors should consider several factors, including their investment goals, time horizon, risk tolerance, and tax situation. Here are some points to keep in mind:
- Hines Global Income Trust is a non-traded REIT, which means shares are not publicly traded on an exchange, making it harder to sell shares.
- Hines Global Income Trust is subject to real estate market risks, including supply and demand factors, interest rates, market cycles, and geopolitical risks.
- Hines Global Income Trust is a limited liquidity investment
- Hines Global Income Trust’s management and distribution fees can impact returns, and investors should consider total expense ratios when making investment decisions.
What are the Benefits of Investing in HGIT?
Diversification: By investing in multiple types of real estate assets across different markets and regions, HGIT provides investors with diversification benefits that can help reduce risk.
Professional Management: As an externally managed REIT, HGIT is managed by experienced professionals who have extensive knowledge of the industry and access to capital markets. This allows them to make informed decisions about where to invest their funds for maximum returns.
Liquidity: Unlike many other types of investments such as private equity or venture capital funds, HGIT shares are publicly traded on the New York Stock Exchange (NYSE) making them more liquid than many other types of investments.
Tax Advantages: As an REIT, HGIT is required to distribute at least 90% of its taxable income each year to shareholders as dividends which may be eligible for preferential tax treatment under certain circumstances.
What Are The Risks Of Investing In HGIT?
Market Risk: Like any investment, there is always the risk that market conditions could cause the value of your investment to decline over time. This could be due to changes in interest rates or economic conditions that affect the value of real estate assets held by HGIT or its underlying investments.
Leverage Risk: As with any leveraged investment vehicle such as an REIT, there is always the risk that leverage could magnify losses if market conditions deteriorate significantly.
How Can I Invest In HGIT?
HGIT shares are publicly traded on the NYSE under the ticker symbol ZHGIIX and can be purchased through any online broker or financial advisor who offers access to NYSE stocks.
Investors should carefully consider all risks associated with investing before making any decisions about investing in HGIT shares or any other security.
Is Hines Global Income Trust A Good Investment?
The decision whether or not to invest in HGIT will depend on your individual goals and risk tolerance as well as your overall financial situation.
It’s important to remember that no investment comes without some degree of risk so it’s important to do your research before making any decisions about investing in HGIT shares or any other security.
With that said, if you’re looking for exposure to commercial real estate with professional management and potential tax advantages then investing in HGIT may be worth considering as part of your overall portfolio strategy.
Investing in Hines Global Income Trust can be a good option for investors looking to diversify their portfolios with real estate investments. The trust’s parent company’s reputation, seasoning management team, diversified and high-quality portfolio, and promising returns make it an attractive option.
Investors should consider several factors before investing, including their investment goals, time horizon, risk tolerance, and tax situation. As with any investment, review Hines Global Income Trust’s offering documents and consult your financial advisor before making any decisions.