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 58,827 property investments, with a total capital value of USD 2,079.7 billion as of December 2022 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.hinesglobalincometrust.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.