Filed Pursuant to Rule 424(b)(3)
Registration No. 333-220046
HINES GLOBAL INCOME TRUST, INC.
SUPPLEMENT NO. 10, DATED DECEMBER 14, 2018
TO THE PROSPECTUS, DATED JULY 18, 2018
This prospectus supplement (this “Supplement”) is part of and should be read in conjunction with the prospectus of Hines Global Income Trust, Inc., dated July 18, 2018 (the “Prospectus”), as supplemented by Supplement No. 1, dated August 15, 2018, Supplement No. 2, dated August 16, 2018, Supplement No. 3, dated September 10, 2018, Supplement No. 4, dated September 14, 2018, Supplement No. 5, dated October 17, 2018, Supplement No. 6, dated October 24, 2018, Supplement No. 7, dated November 15, 2018, Supplement No. 8, dated November 16, 2018, and Supplement No. 9, dated November 27, 2018. Unless otherwise defined herein, capitalized terms used in this Supplement shall have the same meanings as in the Prospectus.
The purposes of this Supplement are as follows:
A.to provide an update on the status of our current public offering;
B.to update the offering price and transaction price for each class of our common stock as of January 1, 2019;
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| C. | to disclose the calculation of our November 30, 2018 net asset value (“NAV”) per share, as determined in accordance with our valuation procedures, for each of our share classes; and |
D.to update disclosure in the “Experts” section of the Prospectus.
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| A. | Status of Our Current Public Offering |
As of December 14, 2018, we have received gross proceeds of approximately $461.9 million from the sale of 47.0 million shares of our common stock through our public offerings, including proceeds from our distribution reinvestment plan. As of December 14, 2018, approximately $1,566.4 million of our common shares remained available for sale pursuant to our current public offering in any combination of Class T Shares, Class S Shares, Class D Shares, and Class I Shares, exclusive of approximately $471.7 million of shares available under our distribution reinvestment plan.
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| B. | January 1, 2019 Offering Price and Transaction Price |
The transaction price for each share class of our common stock for subscriptions to be accepted as of January 1, 2019 (and repurchases as of December 31, 2018) is as follows:
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| | Offering Price | | Transaction Price |
| | (per share) | | (per share) |
| Class T | $ | 10.32 |
| | $ | 9.96 |
|
| Class S | $ | 10.32 |
| | $ | 9.96 |
|
| Class D | $ | 9.96 |
| | $ | 9.96 |
|
| Class I | $ | 9.96 |
| | $ | 9.96 |
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The transaction price for each of our share classes is equal to such class’s NAV per share as of November 30, 2018. The NAV per share as of November 30, 2018 is the same for each of our share classes. A calculation of the NAV per share is set forth below. The purchase price of our common stock for each share class equals the transaction price of such class, plus applicable upfront selling commissions and dealer manager fees.
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| C. | November 30, 2018 NAV Per Share |
Our board of directors has appointed a valuation committee comprised of independent directors, which we refer to herein as the valuation committee, to be responsible for the oversight of the valuation process. The valuation committee has adopted a valuation policy, as approved by our board of directors, and as amended from time to time, that contains a comprehensive set of methodologies to be used in connection with the calculation of our NAV. Our most recent NAV per share for each share class, which is updated as of the last calendar day of each month, is posted on our website at
www.hinessecurities.com/hgit and is also available on our toll-free information line at (888) 220-6121. Please see “Valuation Policy and Procedures” in our Prospectus for a more detailed description of our valuation procedures, including important disclosure regarding interim real property valuations provided by our Advisor and reviewed by Altus Group U.S., Inc., or Altus, the independent valuation firm we have engaged to assist in the determination of our NAV per share and to provide us with a conclusion with respect to the reasonableness of our NAV per share for each class of shares of our common stock. All parties engaged by us in the calculation of our NAV, including the Advisor, are subject to the oversight of our valuation committee. Generally, all of our real properties are appraised once each calendar year by third party appraisal firms in accordance with our valuation guidelines and such appraisals are reviewed by Altus. Altus concluded that the new NAV per share of our common stock as of November 30, 2018 set forth below is reasonable.
The table below sets forth the calculation of our NAV per share of each class of shares of our common stock as of November 30, 2018 and October 31, 2018 (the NAV per share is the same for each class of shares of our common stock):
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| | | | | | | | | | | | | | | |
| | November 30, 2018 | | October 31, 2018 |
| | Gross Amount | | Per Share | | Gross Amount | | Per Share |
| | (in thousands) | | | (in thousands) | |
| Real estate investments | $ | 948,366 |
| | $ | 22.34 |
| | $ | 946,893 |
| | $ | 22.72 |
|
| Other assets | 63,804 |
| | 1.50 |
| | 56,149 |
| | 1.35 |
|
| Debt and other liabilities | (589,284 | ) | | (13.88 | ) | | (588,825 | ) | | (14.13 | ) |
| NAV | $ | 422,886 |
| | $ | 9.96 |
| | $ | 414,217 |
| | $ | 9.94 |
|
| Shares outstanding | 42,469 |
| | | | 41,660 |
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Hines Global’s consolidated balance sheet as of November 30, 2018 includes a liability of $7.9 million related to distribution and stockholder servicing fees payable to Hines Securities, Inc., (the "Dealer Manager") in future periods with respect to shares of its common stock. The NAV per share as of November 30, 2018 does not include any liability for distribution and stockholder servicing fees that may become payable after November 30, 2018, since these fees may not ultimately be paid in certain circumstances, including if Hines Global was liquidated or if there was a listing of its common stock.
The valuations of our real properties as of November 30, 2018 were reviewed by Altus in accordance with our valuation procedures. Certain key assumptions that were used in the discounted cash flow analysis, which were determined by our Advisor and reviewed by Altus, are set forth in the following table based on weighted-averages by property type.
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| | | Office | | Industrial | | Retail | | Residential/Living | | Weighted-Average Basis |
| Capitalization rate | | 6.10% | | 5.75% | | 6.50% | | 5.98% | | 6.15% |
| Discount rate / internal rate of return (“IRR”) | | 7.01% | | 7.15% | | 6.65% | | 7.81% | | 7.12% |
| Average holding period (years) | | 8.6 | | 10.0 | | 10.0 | | 10.0 | | 9.4 |
A change in the rates used would impact the calculation of the value of our real properties. For example, assuming all other factors remain constant, the changes listed below would result in the following effects on the value of our real properties:
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| Input | | Hypothetical
Change | | Office | | Industrial | | Retail | | Residential/Living | | Weighted-Average Values |
| Capitalization rate (weighted-average) | | 0.25% decrease | | 3.06% | | 3.43% | | 2.33% | | 2.25% | | 2.71% |
| | | 0.25% increase | | (2.81)% | | (3.15)% | | (2.15)% | | (2.13)% | | (2.51)% |
| Discount rate (weighted-average) | | 0.25% decrease | | 1.74% | | 1.48% | | 1.88% | | 2.85% | | 2.02% |
| | | 0.25% increase | | (1.70)% | | (1.45)% | | (1.84)% | | (2.85)% | | (1.99)% |
The following updates the “Experts” disclosure on page 237 of the Prospectus:
The statements included in this Supplement under Section B, “November 30, 2018 NAV Per Share,” relating to the role of Altus as the independent valuation firm, have been reviewed by Altus and are included in this Supplement given the authority of Altus as an expert in real estate valuations.
