Disclosure

About the Indexes and Sources

This web­site con­tains infor­ma­tion in the form of charts, graphs and/​or state­ments that we indi­cate were obtained by us from pub­lished sources or pro­vid­ed to us by inde­pen­dent third par­ties, some of whom we pay fees for such information.

We con­sid­er such sources to be reli­able. It is pos­si­ble that data and assump­tions under­ly­ing such third-par­ty infor­ma­tion may have changed mate­ri­al­ly since the date referenced.

You should not rely on such third-par­ty infor­ma­tion as pre­dic­tions of future results. None of Hines Inter­ests Lim­it­ed Part­ner­ship (“Hines”), its affil­i­ates or any third-par­ty source under­takes to update any such infor­ma­tion con­tained herein.

Fur­ther, none of Hines, its affil­i­ates or any third-par­ty source pur­ports that such infor­ma­tion is com­pre­hen­sive, and, while it is believed to be accu­rate, it is not guar­an­teed to be free from error, omis­sion or mis­state­ment. Hines and its affil­i­ates have not under­tak­en any inde­pen­dent ver­i­fi­ca­tion of such infor­ma­tion. Final­ly, you should not con­strue such third-par­ty infor­ma­tion as invest­ment, tax, account­ing or legal advice.

Glob­al real estate, also referred to as direct-owned real estate (glob­al), is rep­re­sent­ed by the MSCI Glob­al Annu­al Prop­er­ty Index (MSCI Glob­al for­mer­ly known as IPD Glob­al Annu­al Prop­er­ty Index or IPD Glob­al) and dif­fers sig­nif­i­cant­ly from an invest­ment in non-trad­ed real estate invest­ment trusts (REITs) and Hines Global.

The MSCI Glob­al reports the mar­ket rebal­anced returns of the 27 most mature mar­kets (includ­ing the U.S.). The index is report­ed in four major cur­ren­cies, includ­ing the U.S. dol­lar and began track­ing mar­kets in 2001 and report­ing results start­ing with the year end­ed Decem­ber 31, 2001. Results are report­ed annually.

The MSCI Glob­al mea­sures unlev­ered total returns of direct­ly held stand­ing prop­er­ty invest­ments from one val­u­a­tion to the next. The returns are based sole­ly on direct­ly held stand­ing invest­ments in com­plet­ed and let­table prop­er­ties, often described as oper­at­ing prop­er­ties. The index tracks per­for­mance of 58,862 prop­er­ty invest­ments, with a total cap­i­tal val­ue of USD 1,977.2 bil­lion as of Decem­ber 2023 and is com­prised of all prop­er­ty sec­tors (retail, office, indus­tri­al, res­i­den­tial, hotel and oth­er), direct own­er­ship struc­tures and inter­ests. The index is com­put­ed at the build­ing lev­el and excludes prop­er­ties held indi­rect­ly through invest­ment funds, the impact of debt, fund man­age­ment fees, tax­a­tion and cash. The MSCI Glob­al is used to gauge the per­for­mance of the glob­al real estate market.

The coun­tries includ­ed in the MSCI Glob­al will be sub­ject to change as the MSCI Global’s cov­er­age extends to more coun­tries and as more accu­rate esti­mates of the val­ue of each invest­ment mar­ket become available.

The MSCI Glob­al reflects the results of direct invest­ments in real estate. Non-trad­ed REITs, such as Hines Glob­al, pro­vide pooled access to a port­fo­lio of prop­er­ties, and are not a direct invest­ment in real estate.

Hines Glob­al also dif­fers from the MSCI Glob­al in sev­er­al respects, includ­ing: it uses debt; it requires the pay­ment of up-front sell­ing com­mis­sions and oth­er fees that typ­i­cal­ly exceed those of insti­tu­tion­al pro­grams, as well as the pay­ment of expens­es relat­ed to being a pub­lic com­pa­ny; investors in Hines Glob­al will be invest­ing in secu­ri­ties of a com­pa­ny and not direct­ly in real estate; and the val­ue of an invest­ment in Hines Glob­al may not be based sole­ly on the appraised val­ue of the under­ly­ing prop­er­ties. The prices of the shares offered by Hines Glob­al equal the then-cur­rent trans­ac­tion price, which gen­er­al­ly will be equal to the most recent­ly deter­mined NAV per share for each class of shares, plus, in the case of shares sold in the pri­ma­ry offer­ing, applic­a­ble up-front sell­ing com­mis­sions and deal­er man­ag­er fees. The sell­ing com­mis­sions and fees reduce the amount avail­able for investment.

Addi­tion­al­ly, the MSCI Glob­al reflects income as cash flow from oper­a­tions. Hines Glob­al may pay dis­tri­b­u­tions from cash flow from oper­a­tions of the prop­er­ties the REIT owns, as well as from oth­er sources, includ­ing bor­row­ings and offer­ing pro­ceeds, which may low­er returns. The avail­abil­i­ty and tim­ing of dis­tri­b­u­tions Hines Glob­al may pay is uncer­tain and can­not be assured. Addi­tion­al­ly, Hines Glob­al is sub­ject to sig­nif­i­cant fees and expens­es, which may low­er returns. The Hines Glob­al board of direc­tors deter­mines the tim­ing and amount of dis­tri­b­u­tions. There is no guar­an­tee that dis­tri­b­u­tions will be paid or that the dis­tri­b­u­tion rate will be maintained.

The MSCI Glob­al does reflect the impact of enti­ty lev­el expens­es; how­ev­er, it does not reflect the fees and expens­es asso­ci­at­ed with rais­ing cap­i­tal to which an invest­ment in Hines Glob­al is sub­ject, which may low­er returns.

Inter­na­tion­al invest­ment risks, includ­ing the bur­den of com­ply­ing with a wide vari­ety of for­eign laws and the uncer­tain­ty of such laws, the tax treat­ment of trans­ac­tion struc­tures, polit­i­cal and eco­nom­ic insta­bil­i­ty, for­eign cur­ren­cy fluc­tu­a­tions, and infla­tion and gov­ern­men­tal mea­sures to curb infla­tion may adverse­ly affect Hines Global’s oper­a­tions and its abil­i­ty to make distributions.

While funds used in the MSCI Glob­al have char­ac­ter­is­tics that dif­fer from Hines Glob­al (includ­ing dif­fer­ing man­age­ment fees and lever­age), Hines Global’s man­age­ment believes that the MSCI Glob­al is an appro­pri­ate and accept­ed index for the pur­pose of eval­u­at­ing the his­toric yields of glob­al com­mer­cial real estate, respectively.

Infor­ma­tion on Hines Global’s per­for­mance can be found in its most recent peri­od­ic reports, which you can access by vis­it­ing www​.www​.hines​glob​al​in​cometrust​.com.

The index­es described below are pre­sent­ed in com­par­i­son to the MSCI Glob­al in order to illus­trate the his­toric dif­fer­ences between direct invest­ments in com­mer­cial real estate, pub­licly trad­ed REITs, stocks and bonds.

Cor­po­rate bonds (Glob­al) are rep­re­sent­ed by the Bloomberg Bar­clays Glob­al Aggre­gate Cor­po­rate Index, which is a flag­ship mea­sure of glob­al invest­ment-grade, fixed-rate cor­po­rate debt. This mul­ti-cur­ren­cy bench­mark includes bonds from devel­oped and emerg­ing mar­kets issuers with­in the indus­tri­al, util­i­ty and finan­cial sec­tors. The Glob­al Aggre­gate Cor­po­rate Index is a com­po­nent of the Glob­al Aggre­gate and Mul­ti­verse Indices. Index his­to­ry is avail­able through Jan­u­ary 2001.

Cor­po­rate Bonds (U.S.) the Bank of Amer­i­ca Mer­rill Lynch U.S. Cor­po­rate Mas­ter Index, which tracks the per­for­mance of U.S. dol­lar denom­i­nat­ed invest­ment grade rat­ed cor­po­rate debt pub­licly issued in the U.S. domes­tic market.

Cor­po­rate bonds are debt instru­ments issued by cor­po­ra­tions that pay a fixed amount of inter­est. Bonds are sub­ject to inter­est rate risk, which refers to the risk that bond prices gen­er­al­ly fall when inter­est rates rise and vice ver­sa. Bonds are eas­i­ly trad­ed and pro­vide ready liq­uid­i­ty. An invest­ment in debt instru­ments, such as cor­po­rate bonds, may be secured by col­lat­er­al and are repaid first should a com­pa­ny be liq­ui­dat­ed, while an invest­ment in a REIT is an invest­ment in equi­ty which will not be secured by col­lat­er­al and the inter­est of share­hold­ers of a REIT are sub­or­di­nate to the REIT’s lenders should a REIT be liq­ui­dat­ed. Invest­ments in non-trad­ed REITs or direct real estate may be sub­ject to more expens­es than a direct invest­ment in bonds, includ­ing man­age­ment fees and enti­ty-lev­el expenses.

Trea­sury Bills (T‑Bills) are rep­re­sent­ed by Bank of Amer­i­ca Mer­rill Lynch 0–3 Month U.S. Trea­sury Bill Index, which tracks the per­for­mance of the U.S. dol­lar denom­i­nat­ed U.S. Trea­sury Bills pub­licly issued in the U.S. domes­tic mar­ket with a remain­ing term to final matu­ri­ty of less than three months. Trea­sury Bills are guar­an­teed as to time­ly repay­ment of prin­ci­pal and inter­est by the U.S. gov­ern­ment. An invest­ment in real estate has no such guarantees.

Large cap stocks (U.S.) are rep­re­sent­ed by the S&P 500 Index, wide­ly regard­ed as the best sin­gle gauge of large-cap U.S. equi­ties. The index includes 500 lead­ing com­pa­nies and cap­tures approx­i­mate­ly 80% cov­er­age of avail­able mar­ket capitalization.

The prices of equi­ty secu­ri­ties rep­re­sent­ed by these indices may change in response to fac­tors includ­ing: the his­tor­i­cal and prospec­tive earn­ings of issues, the val­ue of assets, gen­er­al eco­nom­ic con­di­tions, inter­est rates and investor per­cep­tions. Stocks, includ­ing stocks of trad­ed REITs, are eas­i­ly trad­ed and pro­vide ready liq­uid­i­ty. An invest­ment in direct real estate or a non-trad­ed REIT does not. Addi­tion­al­ly, stock invest­ments are not sub­ject to the fees and expens­es, to which direct real estate and non-trad­ed REITs would be subject.

Past per­for­mance can­not guar­an­tee com­pa­ra­ble future results. All index­es are unman­aged. An invest­ment can­not be made direct­ly in an index.